WEST VIRGINIA INDUSTRIAL ACCESS ROAD PROGRAM West Virginia Economic Development Council January 27, 2016

 IAR Program created by WV Legislature in 1989 established formal application process; funding limits and restrictions; eligibility ( W.Va. Code §17-3A )  DOH required to set aside $3 million from the State Road Fund each fiscal year  No County may be approved for more than $400,000 in Unmatched or more than $150,000 in Matched funds in a given fiscal year  IAR Funds approved based on level of qualified industrial investment: o Each Dollar of Unmatched Funds approved requires 10 Dollars of qualified investment o Each Dollar of Matched Funds approved requires 5 Dollars of investment, and must be matched by like amount from applicant  Used for constructing/maintaining roads to sites on which “manufacturing, distribution, processing, or other economic development activities, including publicly owned airports, are already constructed or ore under firm contract to be constructed.”  IAR funds may not be used for construction of roads to schools; hospitals; libraries; armories; shopping centers; apartment buildings; government installations or similar facilities, whether public or private  Cost of utility adjustment not eligible for funding through IAR Program but utility work can be included in construction contract for IAR o Cost must be identified and funded through source(s) other than IAR o No dedicated utility easement within IAR RW limits—occupy RW by DOH permit OVERVIEW

 Only County or Municipality may apply (industry/company to be served cannot apply)  County Commission must provide resolution of support for any IAR application  Applications may be submitted to WV Development Office anytime during fiscal year o Approval of funds “first come/first served” until $3 million approved o Unobligated Program balance (not approved during fiscal year) is returned to State Road Fund at the end of each fiscal year for use by DOH elsewhere  Amount of IAR funds requested corresponds to cost estimate associated with the proposed roadway project—estimate may be prepared by DOH or by applicant (DOH then must approve)  Investment associated with industrial site may include land value; site development cost; utility cost; building(s); equipment; inventory o Applicant coordinates with WV Development Office to identify amount of qualified industrial investment and employment data o Estimated cost of IAR itself cannot be counted as industrial development  If sufficient industrial investment is not identified at time of application, applicant may provide acceptable financial surety in the amount of the difference in IAR funds approved and amount “qualified”; surety held 5 years after IAR opens to traffic APPLICATION PROCESS

 Design and/or construction cost may be paid with IAR funds o Applicant may administer design and construction if desired o Consultant must be obtained in accordance with W.Va. Code §5G-1-1 o DOH must review/approve IAR plans prior to advertisement of construction contract o Competitive bidding process utilized to obtain contractor and DOH must concur with proposed award of the construction contract o Applicant pays design and/or construction costs of consultant/contractor then requests reimbursement from DOH for eligible costs incurred  Access road termini based on location of industrial activity  RW acquisition cost can be paid with IAR funds o Cost of appraisal and acquisition would consume majority/all of approved IAR funds for a project—DOH expects all RW to be donated to DOH o Construction of IAR cannot take place on private property  All IARs become State Local Service roads in the State Highway System, under the jurisdiction of the DOH  DOH responsible for maintenance/upkeep of roadway  IAR is a public road open to traffic at all times and subject to provisions of W.Va. Code IMPLEMENTATION

 IAR project development process can take many months for completion of design, environmental clearance/permitting, right-of-way conveyance, utility verification, and construction o Industrial site development may be underway already at time of IAR application o Construction of industrial site may take less time than roadway development and implementation  WV Fiscal Year begins July 1 each year, which is midway through “construction season” o DOH can approve IAR funds but execution of project agreement with applicant must be executed before DOH can fully obligate/expend funds o May take month or two before agreement executed and funds available which is near end of construction season if application submitted beginning of July  Funding restrictions o IAR funds can’t be used for utility adjustment, relocation, installation; cost of relocation of utilities can be substantial o Maximum amount of IAR funding available in a fiscal year ($400,000 in Unmatched) may not be enough to pay construction cost of roadway project o Applicant responsible in most cases for project cost in excess of approved IAR amount  Finalizing RW conveyance can bean issue CHALLENGES

Sean Hill WV Development Office Dave Cramer WV Dept. of Transportation QUESTIONS?