Michigan Economic Development Corporation

1
Michigan Economic Development Corporation

• Michigan
• 2007
• CDBG Program

2
Program Priorities

• The Michigan CDBG Program has been a mainstay of
  the State of Michigans 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.

3
2005 CDBG Funding

• 36 million expected from HUD
• General Breakdown
• MEDC 21 million
• MSHDA 15 million

4
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.

5
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

6
Economic DevelopmentJob 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.

7
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 11 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

8
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

9
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 12 or greater

10
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

11
Federal Requirements

• CDBG Application
• Public Hearing
• Community Development Plan
• Business participation on job creation projects
• Authorizing Resolution

12
Tourism DevelopmentAuthorities

• Purpose
• To promote tourist related economic development
  projects.

13
TOURISM DEVELOPMENT AUTHORITIES

• Authority can be created by a
• ? City
• ? Village
• ? Township

14
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.

15
TOURISM DEVELOPMENT AUTHORITIES

• Authority can propose a tax increment
• financing district that captures taxes from
• a project and other developments
• associated with that project.

16
TOURISM DEVELOPMENT AUTHORITIES

• The authority will determine what
• development is associated with that
• project.