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 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.

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 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.

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 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

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 1:2 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.