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Food Park Business Attraction Fund Guidelines and Assessment Criteria

JULY 2017 FOOD PARK BUSINESS ATTRACTION FUND GUIDELINES PAGE 2

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 [email protected]


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


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.

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:

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

Outcomes

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.

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.


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.

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/resources-

downloads/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).

http://www.industryadvocate.sa.gov.au/resources-and-downloads

http://www.industryadvocate.sa.gov.au/upload/industry-advocate/resources-downloads/SA%20Steel%20Economic%20Participation%20Policy.pdf?t=1497398400025

http://www.industryadvocate.sa.gov.au/upload/industry-advocate/resources-downloads/SA%20Steel%20Economic%20Participation%20Policy.pdf?t=1497398400025

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 co-

contributions. 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.

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 co-

contribution.

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.


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)

http://dpc.sa.gov.au/documents/rendition/B17980


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.


8. Food Park Business Attraction Fund Indicative

Timeframes

Food Park Business Attraction Fund– Indicative Timeline

Application Open Date 4 July 2017

Applications Close Date 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.

Notification of outcomes to applicants 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 Financial resources for the project and ongoing operational costs are

secured and available

Northern Adelaide The area contained within the Local Government boundaries of the Cities

of Port Adelaide Enfield, Salisbury and Playford.

Northern Adelaide Region see Northern Adelaide

Property Developer 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


Table 1: Food manufacturers/ processors and supporting services

Food manufacturers/ processors 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

Food wholesaler (excluding fresh produce)

General Line Grocery Wholesaling*

Meat, Poultry and Smallgoods Wholesaling*

Dairy Produce Wholesaling*

Fish and Seafood Wholesaling*

Fruit and Vegetable Wholesaling*

Service Provider (to Food Processors and Food Manufacturers)

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,

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

Materials

Fixtures and fittings

Renewable and clean energy solutions

Capital costs associated with purchase of

capital equipment and machinery required

for business expansion/ growth (including

staff training where applicable)

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.

Costs relating to Food Safety related

accreditations as a result of new premises in

the Food Park

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

Costs to support business process

reengineering to improve core business

processes to improve productivity, cycle

times and quality

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.

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.

10. Food Park Site Map

Primary Industries and Regions SA - PIRSAGovernment of South Australia

GPO Box 1671 Adelaide SA 5001www.pir.sa.gov.au