Economic Development Set-Aside Program
Fiscal Year 2006-2007
Palm Beach County has set aside ten percent (10%) of its FY 2006-2007 CDBG entitlement
for economic development activities. The criteria described hereunder
relate to special economic development activities.
Program Criteria for Special Economic Development Activities (Set-Aside Program):
Under the criteria for special economic development activities, the minimum funding award is $50,000, but funding preference is given to activities with requests of at least $100,000.
Funding preference is given to first-time applicants.
Activities funded under the program must demonstrate a capacity to create or retain jobs. Applicants were solicited through a Notice of Funding Availability (NOFA) which was published on May 7, 2006. All applications must be submitted to EDO by 12:00pm on July 12, 2006. Funding recommendations to the Board of County Commissioners (BCC) will be made in the fall.
EDO will work with the Overall Economic Development Program (OEDP) Committee to initiate this program. A competitive process will be adopted for selecting activities to be funded. Only the highest rated applications, based on completeness and clarity, likelihood of success, and the extent to which specific criteria set by HUD and the County are met, will be recommended for funding.
Funding preference will be given to those applicants whose activity will create/retain the most jobs per unit of CDBG funds requested, benefit the greatest percentage of low- and moderate-income persons, and have the best leveraging ratios. Detailed criteria for the program are outlined below:
Eligible Applicants: An applicant may be either a sole proprietorship, an incorporated business, a municipality or a Community Redevelopment Agency, or any legally organized form of business registered with the Florida Department of State to do business in the State of Florida. A County Department may act as an applicant of last resort for a project located in an unincorporated area that would have otherwise been eligible if located within a municipality.
Eligible Activities: Funds requested under this program must be utilized for Special Economic Development Activities and/or the job creation/retention as defined in the CDBG Regulations at 24 CFR 570. Specific activities which will be funded are:
- acquisition of real property or equipment (excluding vehicles);
- improvements to structures;
- infrastructure improvements; and
- new construction.
Any activity which may cause displacement of residents and/or businesses shall provide the following prior to the award of any contract: a) a relocation plan meeting all requirements of 24 CFR Ch. V Section 570.606, as amended. This plan shall be certified by a consultant certified by HUD, or an agency of HUD as meeting all legal requirements; b) a document legally binding the grant awardee to place in the project budget sufficient funds to fully implement the relocation plan; c) an executed indemnification and hold harmless agreement to protect the County against any and all costs incurred for the displacement and relocation of persons or businesses affected by the activity.
Program Requirements: At least one (1) full-time equivalent (FTE) job must be created or retained for every $15,000 of CDBG funding applied for. The applicant must be directly responsible for generating the jobs to be produced. If funds from other County sources also require that jobs be created, these jobs must be counted separately. All jobs must be listed with the Workforce Development Board.
All projects must be located in or adjacent to the identified Development Regions. Preference will be given to projects which are located in the "acute areas" of these Development Regions.
At least fifty-one percent (51%) of all jobs created must be filled by persons of low- and moderate- income as from time to time defined by the U.S. Department of HUD. In reviewing applications, this item will be scored to give preference to those with a higher percentage of jobs available to low/mod-income persons.
All applicants must supplement requested CDBG funds with cash, equity or real property, subject to review by the OEDP Committee. In reviewing applications, this item will be scored to give preference to those with a higher percentage of supplementary funding.
When funding infrastructure, land acquisition or physical plant construction, these activities must begin within 12 months of BCC approval and be completed within the succeeding 24 months after project commencement.
The CDBG Regulations require that jobs be created within twelve (12) months from date of completion of the facility or improvement. Also, when counting jobs, the County will include all jobs created/retained from the time the contract is approved by the BCC. The total number of jobs required by the county must be created within one (1) year of the completion of the activity. The jobs should be maintained for a period of at least three years. Acquisition, construction and rehabilitation activities which utilize CDBG funds are subject to monitoring for ten (10) years under EDO policy and will be subject to a "Declaration of Restriction on Use" for the entire monitoring period.
Additionally, for activities which are located in an Entitlement Community (West Palm Beach, Boynton Beach, Delray Beach, and Boca Raton) or in a municipality not participating in the Urban County Program, more than 51% of the jobs to be created/retained must be held by individuals who are located outside the boundaries of the Entitlement Community.
Also, when a proposed activity is located in a CDBG Entitlement Community, the municipality must provide a dollar-for-dollar match for the amount of County CDBG dollars requested in the Set-aside application.
Applicants must submit a financial pro forma which allows for an assessment of critical elements outlined by HUD under 24 CFR 570.209(a). These elements will be outlined in the application package. Additionally, applicants must submit a business plan which outlines the goals of the business over a five year period.
Successful applications must meet all other applicable requirements of the CDBG program to include but not limited to meeting a National Objective, Environmental Reviews, Davis-Bacon Wage Determination, Section 3, and Procurement.
Additional information can be obtained from the Economic Development Office by contacting us at (561) 355-3624; by mailing a letter to: 301 N. Olive Avenue, 10th Floor, West Palm Beach, FL 33401; or by e-mailing us at jbbrown@pbcgov.com.
Programs