Food Park Business Attraction Fund. Guidelines and Assessment Criteria

Food Park Business Attraction Fund Guidelines and Assessment Criteria

Food Park Business Attraction Fund Guidelines and Assessment Criteria Information current as of 4 July 2017 Government of South Australia 2017 Disclaimer PIRSA and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein as regards to its correctness, accuracy, reliability and currency or otherwise. PIRSA and its employees expressly disclaim all liability or responsibility to any person using the information or advice. All enquiries Support Officer, Food Park Business Attraction Fund Primary Industries and Regions SA (PIRSA) Level 14, 25 Grenfell Street GPO Box 1671, Adelaide SA 5001 T 08 8226 0900 E PIRSA.FoodPark@sa.gov.au JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 2

Table of Contents 1. Overview 4 2. Objectives & Outcomes 5 3. Eligibility Criteria 6 4. Assessment Criteria 8 5. Assistance and Conditions 9 6. Making an Application 10 7. Food Park Business Attraction Fund Application Assessment Flowchart 12 8. Food Park Business Attraction Fund Indicative Timeframes 13 9. Definitions 13 10. Food Park Site Map 14 JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 3

1. Overview Northern Adelaide is on the cusp of change and together, the State Government, local government, industry and community leaders have developed the Northern Economic Plan to ensure this vital region of South Australia continues to prosper. (Look North, 2016) The Northern Economic Plan is a blueprint for a prosperous northern Adelaide, focused on creating jobs and empowering local communities. The Northern Adelaide Food Park is a key project under the Northern Economic Plan and is a collaboration between South Australian Government (including Renewal SA and Economic Development Board of SA), Food South Australia, City of Salisbury, the broader South Australian food industry and northern Adelaide communities. The Northern Adelaide Food Park provides a significant opportunity to capitalise on South Australia s economic priority Premium food and wine produced in our clean environment and exported to the world by creating greater opportunities for food and wine businesses to expand or co-locate, maximise the production of value-added and differentiated food and wine, and increase value for our premium products. The food manufacturing precinct will be home to leading local, national and international companies that drive growth and exports in South Australia s value-add food sector. This includes: Developing diversified and high value products, and globally connected industries with high growth prospects. Adopting new innovative technologies, new products and services that drive cost efficiencies for individual businesses and the precinct. Forging collaborative partnerships that encourage innovation and knowledge creation across sectors. The Food Park will be located at Edinburgh Parks [refer map section 10] for defined area and will provide food manufacturers and food processors, and related businesses with the opportunity to co-locate, and access infrastructure and services on the one-site. The Food Park Business Attraction Fund is a $7 million South Australian Government initiative to provide once-off assistance to support businesses (food processors, food manufacturers and supporting services) that will be investing in their growth plans by scaling up and locating to the Food Park at Edinburgh Parks. Existing food and beverage businesses located at the Food Park in Edinburgh Parks as well as international and national businesses looking to relocate to South Australia, may also be eligible to apply for the State Government s $200 million Future Jobs Fund. These Guidelines are designed to provide potential applicants with sufficient information to make an informed decision as to whether they wish to apply and may be eligible for funding under the Food Park Business Attraction Fund. Eligibility criteria, other requirements and application dates are set out in the following pages. JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 4

2. Objectives & Outcomes Objective The primary objective of the Food Park Business Attraction Fund is to secure businesses to operate in the Food Park by funding investment ready projects that support the South Australian Government s commitment to: Outcomes Building on South Australia s global reputation for premium food and wine Increasing international exports of differentiated and processed food and wine Transitioning to a low carbon economy Growing through innovation The key outcomes of the Food Park Business Attraction Fund are to: Attract food processors, food manufacturers and supporting services into the Food Park. Increase employment in the agribusiness, food and beverage sector in northern Adelaide. Facilitate development of land through Stage One of the Food Park. Leverage private sector investment into the food industry. Program Structure Key features of the Food Park Business Attraction Fund include: Open Call. Applications will be accepted continuously for assessment until all funds are fully committed or 30 June 2018 (whichever occurs first). The Minister for Agriculture, Food and Fisheries (the Minister) and/or Delegate reserves the right to extend the program beyond this time, subject to available funding. A matching cash co-contribution is required, at a minimum rate of $1 for $1. This means that for every $1 of grant funds provided by Government to an applicant, a matching cash co-contribution of at least $1 is required by the applicant. This doesn t include any in-kind contributions. The maximum funding available per applicant is up to $1.5 million. There are no minimum funding requirements. PAGE 5

3. Eligibility Criteria Eligible Applicants Eligible applicants (see section 9 for definition) are businesses that intend to physically locate their business operations to the Northern Adelaide Food Park at Edinburgh Parks. In addition, to be eligible to apply for assistance under the Food Park Business Attraction Fund applicants must: Be a legal entity with which the South Australian Government can enter into a legally binding funding agreement i.e. a company, an association, an individual or a trustee of a trust with power to enter into a funding agreement with Primary Industries & Regions SA (PIRSA). PIRSA may require third parties who have a significant interest in the project (for example, parent companies/ property developer) to be a party to the Funding Deed; If required under the Corporations Act 2001 (Commonwealth) to do so, hold an ACN or ARBN Be registered for GST and have an Australian Business Number (ABN) Purchase or lease land within the Edinburgh Parks Food Park to construct a new building; or Enter into a lease agreement for a new or existing building within the Edinburgh Parks Food Park. The applicant is a food processor, food manufacturer or service provider. Eligible Activities Eligible applicants will be able to apply for assistance for once-off activities that support the expansion/ growth plans of a business and support the achievement of the key outcomes of this program. Applicants will be able to apply for assistance for one (1) or more of the following activities: capital costs associated with the construction of a new building or refurbishment of an existing building at the Food Park; capital costs associated with purchasing capital equipment and machinery required for business expansion/ growth at the Food Park; costs relating to Food Safety accreditations as a result of locating to the Food Park; and costs to support business process reengineering to improve core business processes to improve productivity, cycle times and quality for operations located at the Food Park. An indicative (but not limited to) list of eligible activities is provided in Table 2. Who is not eligible to apply? Applicants not eligible include: Commonwealth, State or Local Government authorities, or a commercial arm of these agencies. An applicant seeking funding for payment of activities to which a financial commitment has been made prior to the date of the letter of offer from the Minister or delegate (retrospective funding will not be offered). Applicant where part or all of the proposed project activities have been or will be funded (or provided a loan) under another Local, State or Commonwealth Government Program (or the equivalent). Applicant is a property developer. Activities that won t be funded include (but are not limited to): Feasibility studies, business cases and reports. Cost of purchasing land. Costs associated with the physical relocation of your business to the Food Park. PAGE 6

Cost of ongoing operating and maintenance of the premises, plant and equipment or machinery. Costs of purchasing vehicles e.g. trucks, utes, forklifts. Cost of routine business activities such as (but not limited to): Routine or seasonal marketing costs Routine accounting costs, including the costs of audit certificates Routine rental costs and expenses Routine utility costs Routine training costs (exception is training costs associated with purchase of new capital equipment and machinery required for business expansion/ growth) Travel expenses Payment of wages/ salaries or internal staffing/ human resource costs. Projects undertaken on behalf of third parties Costs in protection of Intellectual Property (IP). Excluding food safety accreditation as a result of locating to the Food Park, activities to directly or indirectly meet a legal or contractual requirement outside of the Funding Deed will not be funded. Costs associated with the preparation of the application and project management fees and costs. JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 7

4. Assessment Criteria Applications to the Food Park Business Attraction Fund will be assessed individually against the criteria, as well as against South Australian Government s 10 Economic Priorities. Applicants are advised to present a strong case against each of the criteria, with all claims supported by evidence. Even if the Assessment Criteria is met, it doesn t necessarily guarantee success. Applications will also be assessed on the extent of the broader benefits offered by the proposal specifically the extent to which the proposal demonstrates the creation of jobs and economic growth in South Australia and Northern Adelaide. Assessment Criteria All applicants to the Food Park Business Attraction Fund, will be required to demonstrate that: the business proposition, after once-off funding assistance is sustainable over the longer term without further government assistance. the proposal is investment ready (refer to definitions), including a business case for the business to locate to the Food Park. the project can commence by 30 June 2018 (execution of a Funding Deed) and has a clear project completion date. they have suitable managerial capability and financial capacity to implement the project and to finance ongoing operational costs. provide written confirmation of the source of all cash co-contributions and of the ability to meet them, either: o evidence that that the applicant has, or will have, sufficient cash resources of its own available to fund its co-contribution o evidence that the applicant has, or will have, approval from a financial institution to borrow sufficient funds to meet its co-contribution; or o evidence that the applicant has a firm commitment (including, where appropriate a properly passed resolution) from a third party for financial support to meet its co-contribution Confirmation that project funding is available and assured e.g. letter(s) from financiers/ investment partners. Applicants will also be required to: provide information on the justification for the funding request including a Business Case, profit and loss, cash flow, and balance sheet projections for the construction and operation phase for at least three years including any grants and contributions to the project. These projections must demonstrate ongoing viability beyond the grant funded phase. demonstrate the value for money from Government investment, and alignment to the South Australian Industry Participation Policy (Northern Economic Plan Region) see http://www.industryadvocate.sa.gov.au/resources-and-downloads. Demonstrate alignment with the South Australian Steel Economic Participation Policy - http://www.industryadvocate.sa.gov.au/upload/industry-advocate/resourcesdownloads/sa%20steel%20economic%20participation%20policy.pdf?t=1497398400025 ensure a high proportion of materials, labour and equipment required for implementation/ construction be sourced for Northern Adelaide, South Australia and Australia (in priority order). PAGE 8

5. Assistance and Conditions Assistance Offered Successful applicants will need to enter into a Funding Deed with the Minister for Agriculture, Food and Fisheries (the Minister) or delegate. Once the Funding Deed is executed, grant payments will be made on a reimbursement basis upon presentation of paid invoices for approved project expenditure, including evidence of eligible applicant cocontributions. The Grant is to reimburse GST exclusive costs incurred by the applicant. Payment Schedule On behalf of the Minister, the program and the applicant will develop an agreed schedule of payments as part of the Funding Deed that will be linked to milestone delivery and ultimately project completion. Verification may be undertaken via physical inspection by PIRSA Officers. Payment will be made after a milestone has been accepted as completed by PIRSA. Standard milestones are: First milestone activities to commence the project e.g. commencement of on-ground works, or initial draft of process reengineering Succeeding milestones - achievement of project deliverables in accordance with agreed milestones Final payments are made on receipt of a final report evidencing project completion to the satisfaction of the Minister or delegate. The following conditions will be expected of any financial assistance recipients: Give right to the Government to assess compliance with project deliverable and progress, including through onsite assessments. Complete the project in a timely manner as described in the Funding Deed (based on information provided in the application); Meet all key milestones and obligations as defined in the Funding Deed; Seek prior consideration and approval through the Minister for Agriculture, Food and Fisheries (or delegate), before making any changes to the project; Acknowledge the South Australian Government on any promotional material and provide opportunities for the Minister for Agriculture, Food and Fisheries or a representative to take part in any formal project milestone and launches; and Demonstrate within 3 months from the Deed execution the purchase of land and/ or entering into a lease agreement. Note: Grants may be subject to GST and income tax. Applicants should seek advice on these and other tax implications from their tax advisers or the Australian Taxation Office. The Applicant is responsible for any project cost overruns. PAGE 9

6. Making an Application Application form is available from www.pir.sa.gov.au Applications must be submitted electronically through the online smartform at www.pir.sa.gov.au Key information required in the application includes: Eligibility Detailed description of the purpose of the project Total project costs Amount sought How the grant funds will contribute to the project and program outcomes Project budget and cash flow forecast for 3 years Demonstrate access to fund the share of project costs, as well as adequate working capital. Demonstrate that the applicant has considered cost-effectiveness, productivity and efficiency benefits in building design, plant and equipment to ensure efficiencies in energy, water and/ or waste. Response to criteria Documents to support your application Key documents that applicants will need to provide include: Project Management Plan or a similar document, that includes a risk management plan that outlines significant risks associated with the project and mitigation strategies. Project Delivery schedule Business Case or similar document Written confirmation of the source of all cash co-contributions and of the ability to meet them, either: o evidence that that the applicant has, or will have, sufficient cash resources of its own available to fund its co-contribution o evidence that the applicant has, or will have, approval from a financial institution to borrow sufficient funds to meet its co-contribution; or o evidence that the applicant has a firm commitment (including, where appropriate a properly passed resolution) from a third party for financial support to meet its cocontribution. Where third party funding contributions are being made to meet the co-contribution requirements, letters of support detailing the value and type of contributions Financial statement (including P&L and balance sheet) for three most recent consecutive years Evidence to confirm the Applicant s experience in delivering projects of similar size and scope Evidence of progress regarding building design process for constructing facilities at the Food Park that supports the growth plan of the business e.g. design brief, design contract, concept design, layout design (including energy rating considerations), final design ready for submitting to the relevant planning authority. Evidence of agreement for the purchase of land and/ or securing an interest in land and/or leasing building within the Food Park. Relevant approval for the project from your organisation e.g. signed letter from the Chairperson of the Board, General Manager, Chief Executive Applications will undergo comprehensive due diligence to determine the applicant s financial capability, project s commercial feasibility and investment readiness. PAGE 10

An assessment panel will then consider applications from time to time on merit against the assessment criteria. Preferences for investment ready projects will also be considered, before making recommendations to the Minister for Agriculture, Food and Fisheries (or delegate). Successful applicants will be required to be involved in the preparation of public announcements about the Food Park Business Attraction Fund assistance. Successful applicants will also be required to enter into a South Australian Funding Deed with the Minister for Agriculture, Food and Fisheries in order to receive assistance, which will be subject to the Government s Contract Disclosure policy (see: http://dpc.sa.gov.au/documents/rendition/b17980) JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 11

7. Food Park Business Attraction Fund Application Assessment Flowchart GUIDELINES PUBLISHED Guidelines for the Food Park are published and Fund commences. Applicants are able to submit a full application. ASSESSMENT Applications are assessed individually by an Assessment Panel from time to time against program eligibility and criteria. Comprehensive financial due diligence is undertaken. ASSESSMENT PANEL MEETING The Assessment Panel makes recommendations to the Minister (or delegate) on the merits of each application to the criteria. DECISION The Minister (or delegate) makes decision in consideration of the recommendations from the Assessment Panel. Applicants are notified of the outcome of their application. CONTRACT A Funding Deed is executed between the recipient and the Minister for Agriculture, Food and Fisheries. JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 12

8. Food Park Business Attraction Fund Indicative Timeframes Food Park Business Attraction Fund Indicative Timeline Application Open Date 4 July 2017 Applications Close Date Notification of outcomes to applicants Applications will be accepted continuously for assessment until all funds are committed or 30 June 2018 (whichever occurs first). The Minister reserves the right to extend the program beyond this time, subject to available funding. Within 2 months of the date the application is submitted. 9. Definitions Eligible Applicant A business that intends to physically locate their business operations to the Northern Adelaide Food Park and is a food manufacturer, food processor or a service provider to the food manufacturing industry. Northern Adelaide Food Park see Attached Site Map Section 10 Food processors refer Table 1 Food manufacturers refer Table 1 Investment Ready Northern Adelaide Northern Adelaide Region Property Developer Financial resources for the project and ongoing operational costs are secured and available The area contained within the Local Government boundaries of the Cities of Port Adelaide Enfield, Salisbury and Playford. see Northern Adelaide An individual or business that is seeking to construct buildings within the Food Park for future rental to another party/ parties. Service Provider refer Table 1 JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 13

Table 1: Food manufacturers/ processors and supporting services Food manufacturers/ processors Food wholesaler (excluding fresh produce) Service Provider (to Food Processors and Food Manufacturers) Meat Processing^ Poultry Processing^ Cured Meat and Smallgoods Manufacturing Seafood Processing^ Milk and Cream Processing Ice Cream Manufacturing Cheese and Other Dairy Product Manufacturing Fruit and Vegetable Processing Oil and Fat Manufacturing Grain Mill Product Manufacturing Cereal, Pasta and Baking Mix Manufacturing Bread Manufacturing (Factory based) Cake and Pastry Manufacturing (Factory based) Biscuit Manufacturing (Factory based) Bakery Product Manufacturing (Non-factory based) Confectionery Manufacturing Potato, Corn and Other Crisp Manufacturing Prepared Animal and Bird Feed Manufacturing Other Food Product Manufacturing Soft Drink, Cordial and Syrup Manufacturing Beer Manufacturing Spirit Manufacturing Beverage Manufacturing General Line Grocery Wholesaling* Meat, Poultry and Smallgoods Wholesaling* Dairy Produce Wholesaling* Fish and Seafood Wholesaling* Fruit and Vegetable Wholesaling* Road Freight Transport Other Warehousing and Storage Services Cold Storage Services - Refrigeration Services Product sterilisation Professional, Scientific and Technical Services (R&D) Freight Forwarding Services Packaging Services Scientific Testing and Analysis Services * No fresh produce. Consolidators of frozen product accepted. ^ Abattoirs/ slaughtering are not supported as an activity within the Food Park. Meat canning or meat processing e.g. ready-made meals will be accepted, JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 14

Table 2: Eligible Activities Eligible Activity Areas Eligible Activities - Examples Only (non-limited too) Capital costs associated with construction of building at the Food Park required to support business expansion/ growth Capital costs associated with purchase of capital equipment and machinery required for business expansion/ growth (including staff training where applicable) Costs relating to Food Safety related accreditations as a result of new premises in the Food Park Costs to support business process reengineering to improve core business processes to improve productivity, cycle times and quality Materials Fixtures and fittings Renewable and clean energy solutions Purchase of equipment and/ or machinery (including installation costs) that assists food processing and/ or food manufacturing e.g. commercial processing, equipment custom product packaging/ bottling solutions, integrated weighting systems, packaging systems, product testing, renewable and clean energy solutions. Operator and/or operations training on machine scale-up requirements to deliver consistent product quality, functionality and food safety. Quality and/or technical training on manufacturing impacts and requirements on product quality, functionality or food safety. Training on management of quality or operation systems to accommodate modified HACCP, SOPs or operation standards. Credentials could include, but are not limited to, environmental, food safety, management, organics, supermarket requirements, quality, sustainability, traceability etc. Food Safety Credentials may include - Food Safety Management Programs, Food Safety Monitoring systems, Certification of Food Safe Equipment, Materials and Services, Auditing and Certification, Quality Assurance Management Engaging expertise to undertake a business audit to identify business improvements, and develop and implement business systems and processes that support improved productivity, cycle times and quality. This includes activities such as: o A comprehensive evaluation of their current business position and growth plans o An evaluation review report which lays out business improvement and growth actions o Action plans that can specify business management skill areas that would benefit from expert coaching o Business management skill coaching. PAGE 15

10. Food Park Site Map Disclaimer: Site map is intended for visual purposes only and is not intended to show the precise location or size of allotments at Edinburgh Parks. The applicant is responsible for ensuring by independent verification its accuracy, currency or completeness. PAGE 16

Primary Industries and Regions SA - PIRSA Government of South Australia GPO Box 1671 Adelaide SA 5001 www.pir.sa.gov.au