Georgia Department of Community Affairs Office of Economic Development

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Georgia Department of Community AffairsOffice
of Economic Development

• The Redevelopment Fund

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ObjectiveRedevelopment Fund

• Allow local governments to provide financial
  incentives to eliminate blight in older
  commercial and/or industrial areas
• Practical solutions to dealing with the
  restoration of uneconomical White Elephants in
  your downtowns

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Redevelopment FundGeneral Information

• CDBG set-aside (similar to EIP program)
• Spin-off of popular successful Innovative
  competition in 1998
• Emphasis on elimination of slum and blight in
  industrial areas and downtowns
• Eligible applicants may apply anytime as long as
  funds are available

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Overview of Redevelopment Fund

• Rewards
• locally initiated public/private partnerships
• innovative public/private financing
• Properties placed back on the tax digest
• Infill development saves infrastructure
• Quality Growth

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Overview- contd

• Leverages private sector investments
• Commercial, downtown, or industrial redevelopment
  and/or revitalization projects that need the
  Redevelopment Fund
• Encourages a community revitalization strategy
• elimination of slum and blight national
  objective
• this strategy not generally eligible during
  Regular Round CDBG competition

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Special Eligibility Note

• While projects may use elimination of slum and
  blight as their strategy, some low/mod-income
  benefit must generally be committed to, although
  not nearly to the degree of other CDBG economic
  development-funded programs and/or set-asides.

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Available Funding

• FFY 2003 - 750,000

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Grant Limits / Match Requirements

• Maximum grant amount is 250,000
• No cash match requirements
• Competitive apps must have 1 in other
  public/private investment for each 1 requested
  from Redevelopment Fund
• Leverage can be local government or other public
  and/or private sources

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Eligible Applicants

• Units of general purpose government
• May partner with development authorities
• NOT metropolitan cities, urban counties or other
  units of governments eligible to participate in
  HUDs Entitlement CDBG program
• Applicants can requests funding anytime they have
  an eligible project.

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Eligible sub-recipients

• For-profit Businesses
• Local Development Authorities
• Regional Development Authorities

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Federal / State Compliance issues

• Federal
• HUD Regulations
• NEPA Environmental Review
• Federal Labor Standards
• Conflict of Interest
• Citizen Participation
• Financial Management (Common Rule)

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Compliance requirements contd

• Under State statutes, applicants must comply with
  various State laws and reporting requirements.
  These laws include
• The Georgia Planning Act
• The Service Delivery Strategy Act (HB 489)
• The Solid Waste Management Act,
• Local Government Audit Act, and
• The Georgia Hazardous Site Reuse and
  Redevelopment Act (if applicable DNR/EPD can
  provide TA)

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Eligible Activities

• Economic Development activities authorized in
  Title I of the Housing and Community Development
  Act of 1974.
• Activities are eligible to the extent that they
• benefit at least 51 low/mod-income persons or
• eliminate or prevent slums blight in an area
  designated by the applicant or
• both

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Eligible Activities - contd

• Acquisition
• Rehabilitation
• Clearance
• Assistance to For-Profits

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Eligible Activities contd

• Grants
• Publicly-owned infrastructure
• Publicly-owned facilities
• Loan
• Financing of fixed assets and property
  improvements
• Construction or Rehab of Industrial and/or
  Commercial buildings

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Application Process

• Submission of Initial Project Assessment to
  determine eligibility (not required, but very
  helpful)
• Initial Assessment review project eligibility
  w/in 5 working days
• Pre-agreement Cost Approval (PACA) can be
  provided in response to approved Assessment
• Upon receipt of a complete app, review decision
  w/in 45 days.

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Rating and Selection Process

• Factor Max. Points
• Project Feasibility 210
• Project Strategy 240
• Leverage of Add. Resources 30
• Demographic Need 120
• Total Maximum Points 600
• Minimum of 475 points required for app to be
  considered fundable

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Examples of Projects Funded

• 2/19/2002 City of Cairo 216,038
• The City will used RFP monies to acquire
  blighted downtown properties, clear the blighted
  facilities and develop the property into public
  parking facilities that will serve downtown and
  the proposed Syrup City Performing Arts Center.
  RFP funds will leverage over 2.5 million in
  private financing. The corporation overseeing the
  renovation of the former syrup processing
  facility into the arts center expects the project
  to create eight new full-time equivalent jobs and
  has agreed to make any created jobs available to
  low and moderate-income persons.

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Examples of Projects Funded

• 11/2002 City of Ocilla 140,014
• The City in conjunction with the local
  Development Authority will use RFP funds to
  acquire an abandoned, vacant truck-stop.
  Following acquisition, the City will enter into
  an agreement with the Development Authority to
  implement a Corrective Action Plan approved by
  DNR/EPD, clear the site and then market the
  property for future development. The initial
  funding will be leveraged with 172,233 in other
  local financing.
• Upon the sale/lease of the property to a private
  developer, the City will recoup the appraised
  value of the property and place the proceeds into
  its existing local RLF for small businesses.

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Examples of Projects Funded

• 1/8/2002 Cartersville, City of 250,000
• The City will use RFP funds purchase a public
  "façade easement" that includes the blighted
  facades of nine businesses in downtown
  Cartersville adjacent to the proposed Booth
  Western Art Museum. Upon acquisition of the
  easement, the City will clear the blighted
  structures, improve facades and construct public
  improvements to accommodate the growing tourism
  in downtown Cartersville. RFP funding will
  leverage 277,006 in private financing and
  79,468 in local public financing. The majority
  of the 26 new full- and part-time jobs created at
  the nine businesses will be made available to low
  and moderate-income persons from the Cartersville
  area.

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Examples of Projects Funded

• Additional projects and information on the
  Redevelopment Fund can be viewed at
• www.dca.state.ga.us/economic