99- 626 C.M.R. ch. 1, § 2

Current through 2024-51, December 18, 2024

Section 626-1-2 - Eligible Projects

1. Projects eligible for loan funding under the program are Community Industrial Buildings which meet all the following criteria, as determined by the Authority:

a. The Applicant must be a Local Development Corporation;

b. Demonstrated market need for new Commercial Facility;

c. Demonstrated economic need for new Commercial Facility;

d. Demonstrated financial commitment from the Local Development Corporation to develop successful Community Industrial Building Project and ability to repay loan;

e. Evidence that Local Development Corporation has the rights to develop a Commercial Facility and control of the subject site;

f. Evidence that there is either a lack of private interest in the Project or it is not financially viable for the private sector to solely develop the Project; and

g. Demonstrated capacity to market and manage the facility;

2. Eligible Projects within economically distressed areas of the State will be given funding preference by the Authority. Economic distress, as determined by the Authority, may include, but is not limited to:

a. Loss of or major downsizing of major employer(s) in region;

b. Chronic unemployment or underemployment in the region;

c. Lack of economic diversification; and

d. Historical lack of private investment.

3. Eligible Local Development Corporations must begin paying back loan within three years of the initial draw down at the terms specified in the loan documents.

4. The Authority will only provide loans to fund the actual construction costs associated with a Community Industrial Building. All other costs such as those associated with land assembly, site preparation, utility extensions, marketing, and administration are not eligible to be funded by the Authority.

5. No more than one unoccupied Community Industrial Building per community will be funded under this program.

6. Eligible Community Industrial Building Projects must be located on a developable site in accordance with all State, federal and local regulations. Such site must have adequate utilities and services to support highest intended use of building.

7. All Projects funded under the Program are considered State Growth Related Capital Investments and may only be undertaken in locations that meet the requirements in 30 M.R.S.A. §4349-A(1).

8. Only Projects that are consistent with a municipality's Local Growth Management Program or Comprehensive Plan, or meet the requirements of 30-A M.R.S.A. §4349-A sub-§1 are eligible for monies from the Fund.

9. Under this program, the Authority will not provide loans to refinance existing facilities or to finance or refinance facilities currently being constructed. Local Development Corporations may not request funds for a Project to supplant loan funds from other state or federal programs (e.g., Rural Development, CDBG, EDA, HUD) or revenue bonds already approved by the municipality.

99- 626 C.M.R. ch. 1, § 2