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THE ECONOMIC DEVELOPMENT GRANTS POLICY REVIEW · Report
PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
5.3 THE ECONOMIC DEVELOPMENT GRANTS POLICY REVIEW
Author Project Officer, Vicky Kottaras
Strategy and Environment and Sustainable Development Department
Index Subject / 26.03 - Economic Development Grants
Attachments 1. Attachment 1 Review of Noosa Council Economic Development
Grants Program
2. Attachment 2 Economic Development Grants Policy Amended
3. Attachment 3 Economic Development Grants Council Policy 2017
4. Attachment 4 Economic Development Grants Full List 2017-2023
5. Attachment 5 Guidelines - Economic Development Grant Program
EXECUTIVE SUMMARY
The Economic Development Grant Program was created to support the delivery of projects that will
have a positive impact on the local business environment and the local economy, and looks to
encourage collaboration and partnerships between Council, business representative groups and the
business community.
The Economic Development Grants program has now been running since 2016, initially under the
Community Grants Program umbrella. An Economic Development Grants Policy was adopted in
November 2017 to separate the Economic Development Grants Program from the Community
Grants Policy in 2017. Since that time, Council has published a new Smart Biosphere Economic
Development Strategy and a new Corporate Plan.
Since inception, interest in the program has been low and it has never been fully subscribed in a
budget year.
Subsequently, a review was commissioned to understand the low application rate, review other
grant models, and prepare recommendations for a Grant model which could deliver more
applications and better outcomes.
As part of the review, consultation was undertaken with a range of stakeholders including local
Chambers of Commerce and Business Associations, staff, and Councillors. The Review identified
key issues and made a series of recommendations which have informed the Policy revisions and
subsequent Guidelines. It is expected that the revised policy will see an increase in grant
applications in 2023/24.
The revised Grants Policy also assist to support our commitment and obligations under the Small
Business Friendly Charter to help small businesses thrive; reduce red tape and simplify
administration for small business; and help small business develop networks, access education and
increase their capabilities.
RECOMMENDATION
That Council note the report by the Economic Development Officer to the Planning & Environment
Committee Meeting dated 8 August 2023 and
A. Note the Economic Development Grants Review Report, provided at Attachment 1 to the report;
B. Approve the amended Economic Development Grants Policy, provided at Attachment 2 to the
report; and
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PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
C. Authorise the Chief Executive Officer to conduct future rounds of the Economic Development
Grant Program in accordance with the amended Policy.
REPORT
The purpose of this report is to seek approval of Council to amend the Economic Development Grant
Policy.
The Economic Development Grants Program aims to support the delivery of the Noosa Shire
Economic Development Strategy 2021-2030 and enable collaboration and strategic partnerships
between Council, business representative groups and the business community.
It aims to support stakeholders to deliver outcome driven, tactical and strategic projects that will
positively impact the local business environment, business community and economy and is
consistent with the Small Business Friendly Charter, signed by Noosa Council in April 2023.
The last Economic Development Grants Policy was endorsed in 2017 (refer to Attachment 3).
Background
The Economic Development Grants Program (the Program) was established and adopted by Council
in 2017 as part of its Local Economic Plan (a pre cursor to the Smart Biosphere Economic
Development Strategy).
Since its inception, applications to the program have been low, with a mixed quality of submissions
that have been unable to deliver the strategic outcomes or intent of the Program. In late 2022, an
independent review of the program was commissioned by the Economic Development branch to
better understand and address the low engagement in the program.
The review has been driven by two factors:
• The Program’s inability to fully expend budget each year since its 2018 inception;
• A lack of strategically focused applications that aligned with Council’s Smart Biosphere
Economic Development Strategy .
A final report was presented to the Economic Development Branch in December 2022 (Attachment
2) and has informed the revision of the Policy and the Economic Development Grant Guidelines.
Economic Development Grant Program
Currently, the Economic Development Grants Program has three categories of Grants:
• Quick Response Grants - provides up to $2,000 to support small one-off projects;
• Project Partnership Grants - These grants support innovative one-off projects;
• Multi-Year Partnership Grants - These grants assist stakeholders to deliver longer term
programs agreed by Council that extend beyond 12 months. Funding agreements will
consider funding both on going operational costs and project specific costs.
The current Grants Program operates on a rolling basis and remains open until the end of the
financial year, or until all of the allocated funding has been expended. Applicants can be local
business organisations and for profit businesses where the project is not run for the direct
commercial profit of business.
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PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
A summary of all successful grant applications throughout the life of the program form Attachment
4.
Scope of Review
The review focused on investigating the reasons for low application numbers, including:
• the barriers to application; and
• a review of other local government business/economic development grant programs.
The aim of the review was to establish what changes were required to the current policy and
guidelines to deliver better outcomes.
Information was gathered through face-to-face interviews with key Council staff and local Chambers
of Commerce and business associations.
A Councillor Workshop was also held with Councillors. Other grant program research was
conducted via desktop research.
Comparative Analysis – Grants Programs
No similar competitive grants programs were identified in other local government area. Other grant
funding was mainly disaster, topical (such as sustainability or shopfront) or economic hardship
related.
Key Issues
The review identified the key issues as:
• Process of application is too arduous;
• Voluntary and resource poor nature of Chambers and Business Groups;
• Strategic projects are rare, especially relative to the grant funding amounts available;
• Lack of flexibility in projects that qualify.
PROPOSED CHANGES TO POLICY
Consistent with Noosa Council’s commitment to the Small Business Friendly Charter, to simplify
government processes, the recommended changes to the current Policy are summarised below:
• Removal of three tiers of grant categories to one category of grant application.
• Creation of an Assessment Panel to include representatives of Economic Development and
from another area of Council;
• Criteria to include tactical and placemaking initiatives as opposed to strategic initiatives;
• Addition of Human Rights Compatibility Statement, as advised by Corporate Governance;
• Other minor wording changes to the Policy to maintain consistency with other Council Grants
Policies.
CURRENT PROGRAM PROPOSED CHANGES RATIONALE
• Quick Response One category of grants with a Simplify the grants process, the
Grant minimum of $1000 and a maximum three tiers seem to confuse
of $5000 per grant potential applicants and the Multi
• Project Partnership
Grant Year Program has attracted zero
applications since inception. We
• Multi year have a sponsorship and funding
Partnership Grant programs for larger projects
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PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
which are managed through the
budget process
Assessed by current All applications assessed by a The maximum grant value in new
Council officers, approved panel of Council Officers, including Guidelines will be $5000 (under
by Manager. Grants over non Economic Development staff, the $7500 procurement
30% of budget require with final approval by Director (or threshold).Removes potential
Council approval delegated Manager) conflict of interest and adds more
rigour & fairness to the
assessment process
Strategic Criteria Strategic criteria PLUS the addition Most of the applications were
of a more tactical activations tactical, difficult to be strategic
with the budget allocated to the
grants. More tactical criteria
allow Council flexibility to focus
on current priorities, such as
placemaking when assessing
grant applications
Small Business Friendly Charter
The modifications in the Policy also reflect Council’s commitment and obligations under the Small
Business Friendly Charter, signed earlier this year. These include:
• We will simplify administration and regulation for small business (red tape reduction);
• Limit unnecessary administration and take steps to ensure continuous business
improvement;
• Make it easier for small businesses to comply with administrative and/or regulatory
requirements;
• Develop networks access education and increase their capabilities;
• Regularly review and streamline administrative and/or regulatory arrangements to reduce red
tape;
• Help small business develop networks, access education, and increase their capabilities;
• Assist small businesses to access government, business and industry programs and
resources;
• The recommended changes to the Policy will lead to a more streamlined process with a
simplified application form, a clearer assessment criteria and process, supporting our
commitment to being a Small Business Friendly Council.
Guidelines
The Economic Development Grant Guidelines (Attachment 5) have been modified to reflect the
amended Policy.
Annual Report
An Annual Report will be provided to Council at the conclusion of each financial year either
separately or as part of the Operational Plan reporting. The Annual Report will summarise all Grants
awarded for that year, including recipient organisation and a brief project description.
Link to Corporate Plan
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PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
Theme No. 3 - Prosperity
Focus areas include economic development, local business, innovation, arts & culture, waste and a
circular economy.
The Economic Development Grants Policy has the potential to support all objectives via funding
through the Grants Program
Previous Council Consideration
Ordinary Meeting Minutes 16 November 2017 – Economic Development Grants Policy was
endorsed.
Finance
$40,000 has been allocated to this program in the 2023/24 budget. Council determines the total
allocation of funds to the Economic Development Grants Program through its annual budget
process.
Risk & Opportunities
• Continued lack of • Develop supportive media plan to relaunch program
engagement from business and highlight changes.
community
• One on one meetings with Chamber Representatives
to discuss potential eligible projects.
• Utilise Business Roundtable channels to encourage
greater engagement in program.
• Program will be monitored and reviewed after
2023/2024.
• Negative feedback on the
• Further revisions may be applied.
new program
• Council may choose to cease program due to lack of
demand.
Consultation
External Consultation - Community & Stakeholder
Consultation was conducted with one-on-one interviews with the Chambers, and former applicants,
including:
• Noosa Chamber of Commerce
• Noosaville Business Association
• Noosa Junction Association
• Zero Emissions Noosa
• Hastings St Association
• Landcare Noosa
• Cooroy Chamber of Commerce
Internal Consultation
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PLANNING & ENVIRONMENT COMMITTEE MEETING 8 AUGUST 2023
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
x Mayor & Councillors Director Director
Chief Executive Officer x Community Development Financial Services
Executive Officers Sport & Active Lifestyles Fleet
Community Engagement Arts & Culture Revenue Services
People & Culture Community Connection ICT
Governance Customer Experience Procurement
Commercial Property
Strategy & Environment & Development & Regulation Infrastructure Services
Sustainable Development
x Director Director Director
Strategic Land Use Planning Development Assessment Infrastructure Planning,
Design and Delivery
x Economic Development & Local Laws Civil and Asset operations
Destination Management
Environmental Services Environmental Health Waste
Innovation & Digital Hub Building & Plumbing Building & Facilities
Property / Permits Disaster Management