Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT › Chapter 46 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM: 2018 FINAL STATEMENT › Section 498-46-3 - 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
. 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 that 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 and that the
					 CDBG assistance is vital to the project and cannot be obtained
					 elsewhere.
											*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 may 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.
					 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 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 6 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.