Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT › Chapter 45 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM: 2017 FINAL STATEMENT › Section 498-45-3 - ECONOMIC DEVELOPMENT PROGRAMS

Current through 2024-29, July 17, 2024
A.
ECONOMIC DEVELOPMENT
The Economic Development program (EDP) provides communities
				  with
gap
funding to
				  assist identified businesses in the creation/retention of jobs for low-and
				  moderate-income persons.
1.
Eligible Activities by Group Number:
Group Numbers
Maximum
						  Award
a)
Grants to Municipalities
: for
						  acquisition, relocation, demolition, clearance, construction, reconstruction,
						  installation and rehabilitation
associated with
public
infrastructure
projects such as water and
						  sewer improvements, flood and drainage improvements, broadband/wireless access,
						  publicly-owned commercial and industrial buildings, parking, streets, curbs,
						  gutters, sidewalks, etc. All public infrastructure must be owned by the
						  municipality or public or private utility and be in support of an identified
						  business.
$500,000*
b)
Grants to Municipalities for Direct Business
						  Support:
for capital and non-capital equipment, land and site
						  improvements, rehabilitation or construction of commercial or industrial
						  buildings, job training, working capital and capital equipment and be in
						  support of an identified business. Acquisition is
not
an allowable activity under this
						  group.
$500,000*
2.
Exclusions:
Applicants may apply in only one specific activity
					 group
EDP funds cannot be used to refinance existing
					 debt.
All EDP activities must be in support of an identified
					 business; speculative activities are excluded.
											 Communities receiving an EDP award may not receive any
					 other EDP award for the same project or business during the same program year
					 or for the same project or business from a prior program year that has not met
					 final closeout status.
											 Communities received an EDP award, for the same
					 business in a prior year, must document, at submission of Letter of Intent,
					 employment baseline information to show the company is at or above the
					 employment number achieved as a result of previous CDBG assistance.
											 *Start-up businesses are limited to a maximum grant
					 award of $250,000
Waivers to increase the maximum grant award
					 amount, in instances where the impact of the project is substantial and can be
					 documented, both through project investment and job creation, may be requested
					 to the Director of the Office of Community Development.
3.
Project Benefit:
All projects must document that at a minimum, 51%
				of all jobs created or retained as a result of the funded activity must be
				taken/held by persons of low and moderate income as defined by HUD. Jobs
				created/retained must be in the community applying for the EDP award, new jobs
				to that community and not associated with any other branches of the assisted
				business located in another community. Transfer positions cannot be counted
				toward the job creation/retention requirements.
In the event that job
				creation requirements are not met, the applicant community will be responsible
				for immediate repayment to DECD of all CDBG funds expended on the
				project.
4.
Program
				Dollars per Job:
The maximum CDBG participation per job created or
				retained with EDP funds is $30,000.
5.
Full Time permanent Jobs:
In
				determining CDBG National Objective compliance with jobs created or retained
				only
Permanent
jobs may be counted; temporary jobs may not. Full
				time jobs require a worker to work at least 1750 hours per year. Part time jobs
				require a worker to work at least 875 hours but less than 1750 hours per year.
				Part-time jobs
must
be converted to Full Time Equivalents (FTE).
				An FTE is defined as two part time jobs.
Seasonal
jobs
may
count only if the seasonal job lasts long enough
				and provides sufficient income to be considered the employee's principal
				occupation. (Contact OCD prior to counting seasonal jobs towards LMI
				benefit.)
All
permanent jobs created by the project must be
				counted, regardless of funding source(s). Jobs indirectly created by the
				project (i.e., remote location, "trickle down" jobs) do not count.
6.
Maximum Project Size for Utilizing
				EDP Funds: $3,000,000
Phasing of projects to make the total cost appear
				to be below the maximum project size is expressly forbidden.
7.
Program Requirements:
(a)
EDP Letter of Intent Due
				Dates:
All communities wishing to submit an EDP application must
				  submit a Letter of Intent. Please refer to Page 5 of this document for Program
				  deadlines and due dates. After review for completeness and eligibility, units
				  of general local governments will be invited to make a full application.
(b)
EDP Application Due
				Dates:
By invitation only as a result of accepted Letter of Intent.
				Please refer to Page 5 of this document for Program deadlines and due
				dates.
(c)
Necessary and
				Appropriate:
EDP assistance to a business must be for projects that are
				necessary and appropriate. The application must describe the need for program
				assistance, reasonableness of the amount requested, and assurance that the
				assistance provided is commensurate with the community benefits that will
				accrue from the project.
Documentation must be provided that the project
				cannot proceed without program participation and that program funds provide
gap
financing.
(d)
Compliance with Benefit
				Certification Requirements:
The business and the applicant community,
				under the direction of the Program Manager assigned to the project, must comply
				with documentation requirements for jobs created/jobs retained on a project
				including but not limited to benefit surveys, income verification and periodic
				reporting that the Office of Community Development may require.
(e)
EDP Matching Funds
				Requirements:
Communities applying for Economic Development Program funds
				must certify that a 100% cash match of the total EDP award will be provided.
				Matching funds must be directly related to the activities undertaken with EDP
				funding.
(f)
EDP Projects in
				Support of Retail Businesses:
OCD may accept an EDP application in
				support of a
retail
business activity only under the
				following limited conditions: 
				
												The retail business represents the provisions of new
					 products and services previously unavailable in the community or is a
					 tourism-related business; and
												 The development or expansion of the retail business
					 represents a net economic gain for the community and the region. Applications
					 supporting a retail business or businesses are required to certify that the
					 development represents a new overall gain for the region's economy and not a
					 shift from existing established businesses to a new or expanded one;
					 and
												 The retail business is located in either a downtown
					 district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a
					 designated local growth area contained in an adopted and consistent
					 comprehensive plan; and
												 At least 50% of the jobs created by the retail
					 business must be full time jobs.
9.
Selection Process:
The
				selection process will consist of two stages. Members of the Review Team will
				assign a Review Point Total for each application reviewed. Review Point Totals
				will consist of the sum of the three scoring areas below and any applicable
				bonus points. The following criteria will be used:
(a) Stage 1:
Letter of
				  Intent:
All communities wishing to submit an EDP
				  application must first submit a Letter of Intent. After review for completeness
				  and eligibility, units of general local governments may be invited to make a
				  full application. Please refer to Page 5 of this document for Program deadlines
				  and due dates.
(b) Stage 2:
Application:
Members
				  of the Review Team will assess the applications based on the following
				  criteria:
Problem
				  Statement
Scope
Detail the problems or needs facing the
					 community/business to be assisted.
												 Tell how these problems relate to job creation or job
					 retention activities.
												 Describe how the overall financial viability of the
					 community/business is affected by the problems or needs.
Impact
Identify how employment opportunities for
				  persons of low/moderate income are negatively affected by the identified
				  problems.
Emphasize the importance of the affected business in
					 relation to the stability of the community/region and its current financial
					 well-being including property tax analysis before and after the proposed
					 activities.
Need
Identify reasons why the community/business
				  is unable to finance the proposed project on its own, or with assistance from
				  other sources.
Include a narrative that highlights any recent efforts
					 by the community/business to assist job creation/retention
					 activities.
Solution
Project Description
Detail the activities that
				  the community/business will undertake using EDP funds to resolve the
				  problems/needs presented in the Problem Statement.
Identify, in detail, the
specific
acquisition, equipment, real property
					 improvements and/or fixtures that will be installed, modified, and upgraded,
					 etc., with EDP funds.
												 Explain how the solution directly solves the
					 identified problems/needs.
												 Include a firm figure of the number of jobs to be
					 created or retained as a result of the project, and how these jobs relate to
					 persons of low/moderate income.
												 Clearly state the amount of EDP funds sought and how
					 they will fit into the overall financing for the project.
												 Include a graphic description (aerial photo, map, and
					 sketch) of the sites involved. Provide a generalized location of the site
					 relative to the community and a copy of a floodplain map showing the project
					 location. Include existing and proposed site and/or building
					 improvements.
Effect on Assisted Business
Describe the effect the EDP award and completion of the
					 project, as a whole, will have on the ability of the community/business to
					 remain competitive, and create/retain quality jobs. 
												Describe the market including identification of
					 competitors, price structure, resource availability, operating/manufacturing
					 costs, transportation costs, demand, and other factors influencing the
					 marketability of the product or service proposed. Also identify all project
					 risks and the extent of the risks.
Project Timeline and Feasibility
Describe how the project is assured of successful
					 completion within 12 months.
												 Identify what work, such as pre-engineering,
					 construction and improvements, or fixture purchases that have been completed,
					 or are in process, and exactly how these relate to the proposed EDP
					 project.
												 Provide background information (including resumes) for
					 the owners and/or managers of the business and specific information about the
					 skills and experiences of the owners and/or managers as related to the
					 successful management of the business and proposed project. 
												Include a concise timetable for project
					 implementation.
Citizen Participation
Public Hearing Process
Describe how citizen participation contributed to the
					 actual development of this application, including how the required public
					 hearing contributed to the process.
(Submit a public hearing record
					 consisting of the published public hearing notice, hearing minutes, and
					 attendance list with the original and all three copies of the
					 application.)
Business/Local Involvement
Outline other
					 input from businesses, chambers of commerce, development organizations, local
					 groups and individuals have had in increasing the citizen participation process
					 for the proposed project.
Highlight how the use of any media (TV, radio, newspapers,
				  etc.) increased public awareness and participation in the EDP project.
10.
Business
				Friendly Community Designation Bonus-3 bonus points
will be assigned to
				each applicant community certified as a Business-Friendly Community at time of
				application.
11.
Final
				Score
. EDP applications will be awarded funding based on the consensus
				of the review team together with the analysis completed by OCD's financial
				underwriter.
12.
Project
				Development Phase:
The project development phase must be completed within
				3 months from the date of award. The goal of this phase is a grant contract for
				CDBG funds. During this phase an OCD Development Program Manager will be
				assigned to work with the community to finalize their project. OCD reserves the
				right to rescind the CDBG program award of the community is not under contract
				within this time. The Office of Community Development may grant waivers for
				just cause.