Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT › Chapter 44 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM › Section 498-44-3 - 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
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.
$1,000,000
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.
$1,000,000
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.
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. Refer to Page 5 of this document for Letter of
				  Intent due dates and deadlines. 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.
(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 directlyrelated 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.
					 Section4301(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 assign a Review Point Total for each
				  application reviewed. Review Point Totals will consist of the sum of the three
				  scoring areas below and be determined by the total of each sub-scoring area. A
				  maximum of 100 points is obtainable.
Problem Statement (40 points)
-
Scope
(15
				  points)
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 (10 points)
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 (15 points)
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 (40
				  points)
-
Project Description (15 points)
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 (10 points)
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 (15
				  points)
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 (20
				  Points)
-
Public Hearing Process (10 points)
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 (10 points)
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 certifiedas a Business-Friendly Community at time of
				application.
11.
Final
				Score
Each application will receive a Final Application Score consisting
				of the average of the scores assigned by members of the Review Team and
				Business Friendly Community Designation Bonus if applicable. Starting at the
				top of the scoring list, applicants will be invited to proceed to the Project
				Development Phase as funds allow.
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.