Louisiana Administrative Code › Title 13 - ECONOMIC DEVELOPMENT › Part III - Financial Assistance Programs › Chapter 1 - Economic Development Award Program (EDAP), Economic Development Loan Program (EDLOP) and Economic Development Site Readiness Program (EDRED) › Subchapter A - Economic Development Award Program (EDAP) › Section III-105 - General Principles

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				  following general principles, including the eligibility requirements set forth
				  in §107 and the
				  criteria provided in
				  §109 below, will direct the
				  administration of the Economic Development Award Program (EDAP).
1. LEDC acting through LED may make an EDAP
				  award, by grant or loan, on terms and conditions which are determined by the
				  LEDC board in its discretion, considering the recommendations of the Secretary
				  and/or the staff of LED or LEDC, or by the staff of LED or LEDC in the absence
				  of a determination by the LEDC board, will be beneficial in meeting the goals
				  and purposes stated in the preamble and purpose of these rules.
2. Awards are not to be construed as an
				  entitlement for companies locating or located in Louisiana, and are subject to
				  the discretion of the LEDC board, after considering the recommendations of the
				  Secretary and/or the staff of LED or LEDC.
3. An award must reasonably be expected to be
				  a significant factor in a company's location, investment and/or expansion
				  decisions.
4. Awards must
				  reasonably be demonstrated to result in the improvement of or enhancement to
				  the economic development and well-being of the state and local community or
				  communities wherein the project is or is to be located.
5. The retention and strengthening of
				  existing businesses will be evaluated using the same procedures and with the
				  same priority as the recruitment of new businesses to the state.
6. The anticipated economic benefits to the
				  state and to the local community or communities wherein the project is or is to
				  be located will be considered in approving and making the award.
7. The favorable recommendation of the local
				  governing authority wherein the project is or shall be located is expected and
				  will be a factor in the consideration of the award.
8. Appropriate cost matching or funds
				  matching by the applicants, private investors, the local community and/or local
				  governing authority, as well as among project beneficiaries will be a factor in
				  the consideration of an award.
9.
				  Award funds shall be utilized for the approved project only.
10. In a sponsored project, during the term
				  of the award agreement the sponsoring public entity shall maintain public
				  ownership of the public property and infrastructure improvements acquired or
				  paid for with state funds; and in an unsponsored project, during the term of
				  the award agreement the awardee/company shall maintain ownership of the
				  property and improvements acquired or paid for with state funds. These parties
				  shall not transfer ownership of such property or improvements for less than the
				  fair market value thereof. Should either of these parties elect to sell such
				  property or improvements, or should any other party to the award agreement or
				  any other third party elect to purchase such property or improvements for fair
				  market value during the term of the award agreement, the proceeds derived from
				  such purchase and received by the selling party shall be refunded to LED or
				  LEDC by the selling party immediately on receipt of such proceeds, to be
				  applied as a credit against the remaining unpaid or uncredited balance of the
				  award.
11. In the discretion of the
				  LEDC board, after considering the recommendations of the Secretary and/or the
				  staff of LED or LEDC, a two-year moratorium from the date of an LEDC board
				  approval or award of a grant or a loan may be required on additional EDAP
				  awards for the benefit of the same company at the same location, and a company
				  shall not be eligible for or receive another EDAP award so long as the same
				  company is currently still obligated under an existing EDAP award involving the
				  same location.
12. Whether or not
				  an award will be made is entirely in the discretion of the LEDC board, after
				  considering the recommendations of the secretary and/or the staff of LED or
				  LEDC, and shall depend on the facts and circumstances of each case, the funds
				  available, funds already allocated, and other such factors as the LEDC board
				  may, in its discretion, deem to be pertinent.
13. The approval or rejection of any
				  application for an award shall not establish any precedent and shall not bind
				  the LEDC board, the LED secretary or the staff of LED or LEDC to any course of
				  action with regard to any application or award.
14. A loan award may also take the form of a
				  loan participation, wherein LED or LEDC may act as the originator of the loan,
				  and may share or participate a portion of the loan with another lender or other
				  lenders; or LED or LEDC may act as a participant in a loan, and accept a
				  portion or a share of a loan originated by another lender or other
				  lenders.