EDGE Local Business Participation Program (LBPP) Mandatory Participation 0 Prior to closing, PILOT recipients will submit a LBPP Plan for local small, women, and minority owned firms. 0 The Plan will include recipient?s expectations for construction contracting and ongoing spending for supplies, materials, and services. The PILOT recipient?s Plan shall include a commitment to a minimum level of 15% of the initial project construction and site work cost, plus an average annual 15% of the local discretionary spend at the Project over the term of the PILOT. If the recipient fails to actually achieve this threshold, then the PILOT term may be proportionately reduced by up to 20% of the PILOT term, up to a maximum of 2 years. Incentive-Based Benefits 0 The incentive for exceptional performance will be increased from (2) to (3) additional years, added to the end of the basic PILOT term. 0 One year would be awarded for achieving expectations of the LBPP amounting to 25% of the construction cost and site work plus an annual average of 25% of the local discretionary spend at the Project over the term of the two years for achieving 35%; and three years for achieving 45%. 0 To provide notice and financial planning, the additional incentive years would be added to the PILOT term one year prior to the termination date of the PILOT and "After" it Is evident that performance has been, and will be achieved. Rationale 0 A comprehensive approach to supplier diversity is warranted to accomplish results needed. 0 The current PILOT program under EDGE has achieved results and with the additional incentive additional results can be achieved. 0 With the current unemployment and poverty rate, Memphis cannot afford to lose more projects, jobs, capital investment and the related opportunities for diversity contracting to our competitors. 0 The proposed LBPP can be evaluated along with the other components of the Comprehensive Diversity Program and if results are not produced the policies can be revised accordingly. Scanned by CamScanner