Presentation on theme: "Michigan Economic Development Corporation Michigan 2007 CDBG Program."— Presentation transcript:
Michigan Economic Development Corporation Michigan 2007 CDBG Program
Program Priorities The Michigan CDBG Program has been a mainstay of the State of Michigan’s Community and Economic Development efforts. A hallmark of the CDBG program has been its flexibility in allowing the state to develop programming that addresses the needs of small and rural communities.
2005 CDBG Funding $36 million expected from HUD General Breakdown MEDC$21 million MSHDA$15 million
Eligible Communities Small cities, townships, and villages of less than 50,000 population as well as non-urban counties are generally eligible for projects under the Michigan CDBG Program.
CDBG Funded Activities Economic Development: Job Creation Economic Development: Planning Incubator/Entrepreneurial Development: Job Creation Elimination of Blight Economic Development: Assistance for Private and/or Non-Profit Business Infrastructure Capacity Enhancement
Economic Development: Job Creation Grants to provide public infrastructure improvements necessary for the creation of jobs through the location or expansion of a private for-profit business. –Public infrastructure may include public water, sanitary sewer, and related facilities as well as roads, bridges, and public utilities.
Economic Development: Planning Available to help communities conduct economic development studies that will lead to job creation. Selection Factors; –An evaluation of near term job creation –Potential overall impact on the community –Maximum grant is $50,000 with a 1:1 community match –Date of last planning oriented study –the extent to which it appears that the planning grant will lead to a eligible implementation project
Incubator/Entrepreneurial Development for Job Creation Grants for public or non-profit incubator projects with construction, acquisition or expansion of a facility: –Project Viability; community must be able to demonstrate the potential demand including entrepreneurial support systems and entrepreneurial interest –Financial Viability; demonstrate financial viability of the incubator or proposed incubator including fiscal and managerial capabilities
Incubator/Entrepreneurial Development for Job Creation Continued: –Cost Per Job; priority will be given to projects creating jobs at a cost of $20,000 or less –Local Participation; priority will be given to projects where local funding is 30% or more of total infrastructure costs –Minimum Leverage; all project real asset funds to CDBG funds is 1:2 or greater
Elimination of Blight Communities may request grants to assist in the elimination of spot blight in non-downtown community areas: –Project Viability; demonstrated by community –National Objective; national policy objective –Project Type; priority given to elimination of vacant, deteriorated and abandoned sites
Federal Requirements CDBG Application –Public Hearing –Community Development Plan –Business participation on job creation projects –Authorizing Resolution
Tourism Development Authorities Purpose: To promote tourist related economic development projects.
TOURISM DEVELOPMENT AUTHORITIES Authority can be created by a: → City → Village → Township
TOURISM DEVELOPMENT AUTHORITIES A county can pass a regional Authority if all cities, villages, and townships within the county pass a resolution allowing the capture of their taxes.
TOURISM DEVELOPMENT AUTHORITIES Authority can propose a tax increment financing district that captures taxes from a project and other developments associated with that project.
TOURISM DEVELOPMENT AUTHORITIES The authority will determine what development is associated with that project.