Loading...
8.a PREDEVELOPMENT GRANT FUND POLICY - Revised 2 23 18 WASHINGTON COUNTY CDA PREDEVELOPMENT FINANCE FUND POLICY AND GUIDELINES I. Purpose: To provide predevelopment grants to cities, townships and local government development authorities located in Washington County. These funds are intended to: 1) increase the availability of shovel ready properties in the county; 2) provide opportunities for our existing businesses to stay and grow here in Washington County; 3) spur new business development and job opportunities in the County; 4) provide opportunities for business diversity; 5) increased commercial and industrial market values within Washington County, and 6) assist with removing blighted properties. II. Maximum Grant Awards and Matching Requirements: a. There will be two levels of grant funding. The small pool will include a lower level of funding of grants totaling less than $10,000. The large pool will include grant amounts between $10,000 and $40,000. b. Grant amounts may not exceed $40,000 per year, per city, and must be a $1 to $1 (CDA funds to local funds) match for grants of $10,000 or more and .20 cents local to every $1 of CDA funds match for grants of less than $10,000. c. Applicants may use non-public funds as local match. In-kind contributions shall not be considered a match. III. Eligible Applicants: Eligible applicants include cities and townships located in Washington County, and/or their duly created economic development organizations or authorities that are enabled under Minnesota Statutes are eligible to apply. IV. General Program Parameters and Application Requirements: a. Applicants must consult with CDA Economic Development Director prior to the submission of an application to determine if the proposed request would meet the intent and the criteria of the program. b. The required application form will be provided upon request; however, a detailed project narrative must accompany the application and must address the following items in order to proceed to scoring: i. A description of the proposed activities for which the grant funds will be utilized and a description of the expected development including the anticipated types of businesses as a result of the activities. ii. An analysis of how the proposed activities satisfy the criteria in Section VII, including an analysis of why the property is not likely to develop through the normal private sector development process without the requested CDA funding. iii. A sources and uses spreadsheet identifying the expenditures/uses anticipated, including the purpose of the requested funds, and identifying all sources of funds to pay for the proposed work, including the matching funds. It must be documented that the matching funds will be used for eligible activities. iv. A project timeline describing when the requested activities is proposed to occur, the timeline of subsequent activities including, the timeline of anticipated development and the expected type(s) of development. v. A description of how the development is consistent with policies and strategies of the local community comprehensive and/or other economic development plan. vi. A description of the benefits to the city and the county, including but not limited to, a description of total anticipated jobs, wages, the amount of new jobs, the level of private investment, the change in commercial and industrial market values, and anticipated indirect economic benefits. vii. A description of how anticipated development interacts with the local economy, existing businesses and suppliers and the accessibility to local talent), and whether the anticipated development diversifies the economic base of the community. viii. A description of the level of local commitment to the development of the property, including an explanation of previous or pending public meetings. c. Submission of a supporting resolution from the governing body of the jurisdiction (template provided below). d. The Washington County CDA reserves the right to award all or a portion of the funds requested. e. Applications will be accepted on a continual pipeline basis until all available funds have been exhausted. f. The general operating costs of an applicant may not be funded through this grant or be used to fulfil matching requirements. g. Two pools of funds are available: i. The “Small Pool” is for grants of less than $10,000 and is awarded by the Washington County CDA Economic Development Director. 1. The application will be reviewed and ranked in the order in which it was received. A minimum of 60 points must be scored in order to be funded from the Small Pool. ii. The “Large Pool” is for grants ranging from $10,000 to $40,000 and is awarded by the Washington County CDA Board of Commissioners. 1. The application will be reviewed and ranked in the order in which it was received. Applications for the Large Pool will be processed for the next available Board meeting. A minimum of 60 points must be scored in order to be funded from the Large Pool. 2. Funds already expended on eligible activities within six months of the date of application may be included in the request and approved by the CDA Board. h. Any CDA funded activities that are included in a MN Statutes Chapter 429 Assessment must be reimbursed to the Washington County CDA. V. Eligible Activities: a. The following activities are eligible for funding: i. Environmental studies (including wetland studies, EAW, EIS and AUAR studies, geotechnical, soil tests and feasibility studies) ii. Site planning and design (including land use studies) iii. Appraisals iv. Survey work v. Engineering studies including reports, drawings and water, sewer and storm water feasibility studies vi. TIF, Tax Abatement Analysis (i.e. TIF Plan) or other financial incentives planning vii. Other predevelopment activities as determined to be acceptable at the discretion of the CDA Board of Directors. b. It is anticipated that the above eligible activities will be aimed at development or redevelopment of a blighted property, underutilized property, creation or redevelopment of large acreage industrial/business park, and/or difficult to develop or contaminated sites. VI. Grant Distribution and Close Out: a. Contracts must be executed and invoices or proof of payment submitted to the CDA prior to release of any funds. b. At the end of the grant period the grantee must provide a final report to document: i. All grant activities have been completed; ii. All funds received must have been expended; and iii. A description of the outcome and copy of the study or activity paid for by CDA funds. c. The Washington County CDA reserves the right to terminate the grant agreement if the proposed project is not making adequate progress. VII. Funding Priorities and Scoring System: a. If the application is complete and demonstrates compliance with the intent and the criteria of the program, applications will be reviewed and ranked in the order in which it was received based on the following competitive criteria: i. Increase the Inventory of Commercial and Industrial Shovel Ready/Developable Properties. The application clearly demonstrates that development on the subject parcel(s) is not imminent, and also demonstrates that the request will allow development to occur that may not otherwise occur. [up to 20 Maximum Points] ii. Business Retention and Expansion. The application clearly demonstrates that the request could allow for retention and/or expansion of existing business. [up to 10 Maximum Points] iii. Opportunity for Business Diversity. The application clearly demonstrates that the request could provide for different types of businesses to be located in the community thereby strengthening the diversity of the existing economy. [up to 10 Maximum Points] iv. Removes Blighted Properties. The application clearly demonstrates that the request will aid in removing blighted properties that may be hindering economic investment. [up to 10 Maximum Points] v. Economic Benefit. The application clearly demonstrates the potential future impact/benefit on the local economy, as measured through factors including but not limited to growth and/or projected growth in commercial and industrial value, property taxes, and/or the potential for new and/or retained livable wage jobs. [up to 40 Maximum Points] vi. Increased Leverage. The applicant provides local matching contributions in excess of the minimum requirements for the large pool grant and small pool request requirements. [up to 10 Maximum Points] b. Applications must be submitted electronically on the forms provided by the CDA and will be accepted on a pipeline basis beginning March 1, 2018. Applications must be submitted electronically (.pdf file preferred) by email to the CDA Economic Development Director. VIII. Grant Agreement: a. CDA staff will work with the Applicant and enter into a Grant Agreement. This agreement will detail the terms and conditions of the grant and allow for the release of funds to the grant recipient. b. The grant agreement will require funds to be spent no later than December 31, 2019. c. The Grant Agreement must be fully executed by both parties no later than December 31, 2018. d. Waivers and extensions to any provision in the agreement requested by the grantee will be considered on a case by case basis depending on the merits of the request. e. Grants will be paid on a reimbursement basis. Grantees will be required to submit quarterly/semi-annual progress reports to the CDA when requested. REQUIRED RESOLUTION PROVISIONS – CITY WHEREAS, the City of has identified a proposed project within the City that meets the Washington County Community Development Agency (CDA) Predevelopment Finance Fund’s purposes and criteria; and WHEREAS, the City has established that the property in consideration has been zoned and/or guided for future development accordingly and the proposed project is a high priority of the city; and WHEREAS, the City supports the proposed project scope of work and hereby supports the application to the Predevelopment Finance Fund; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of enhancing economic development opportunities that will serve to create jobs, enhance the tax base and improve the lives of Washington County residents. NOW THEREFORE BE IT RESOLVED that the City of approves the application for funding from the Washington County CDA Predevelopment Finance Fund. BE IT FURTHER RESOLVED that upon approval of its application by the Washington County CDA, [insert authorized official’s name], the [insert authorized official’s title], is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project.