§ 143B-472.35. Establishment of fund; use of funds; application for grants; disbursal; repayment; inspections; rules; reports. - North Carolina Statutes

Part 15. Main Street Solutions.

§ 143B‑472.35. Establishment of fund; use of funds; application for grants; disbursal;repayment; inspections; rules; reports.

(a)        A fund to be knownas the Main Street Solutions Fund is established in the Department of Commerce.This Fund shall be administered by the Department of Commerce. The Departmentof Commerce shall be responsible for receipt and disbursement of all funds asprovided in this section. Interest earnings shall be credited to the MainStreet Solutions Fund.

(b)        Funds in the MainStreet Solutions Fund shall be available to micropolitan cities in developmenttier two and three counties in the State. For purposes of this section, a"micropolitan city" is a city located within the State with apopulation, according to the most recent U.S. census, of between 10,000 and50,000 people. Funds in the Main Street Solutions Fund shall be used for any ofthe following eligible activities:

(1)        The acquisition orrehabilitation of properties in connection with private investment in adesignated downtown area.

(2)        The establishment ofrevolving loan programs for private investment in a designated downtown area.

(3)        The subsidization ofinterest rates for these revolving loan programs.

(4)        The establishment offacade incentive grants in connection with private investment in a designateddowntown area.

(5)        Market studies,design studies, design assistance, or strategic planning efforts, provided theactivity can be shown to lead directly to private investment in a designateddowntown area.

(6)        Any approved projectthat provides construction or rehabilitation in a designated downtown area andcan be shown to lead directly to private investment in the designated downtownarea.

(7)        Public improvementsand public infrastructure within a designated downtown area, provided theseimprovements are necessary to create or stimulate private investment in thedesignated downtown area.

(c)        Any micropolitancity located within a development tier two or three county may apply forassistance from the Main Street Solutions Fund by submitting an application tothe Main Street Center in the Division of Community Assistance, Department ofCommerce. Any city affiliated with the North Carolina Main Street CenterProgram may apply for a grant for a proposed project.

(c1)      The applicationshall include each of the following:

(1)        A copy of theconsensus local economic development plan developed by the micropolitan city inconjunction with the Department's Main Street Program and the city's regionaleconomic development commission or its local council of government or both.

(1a)      The proposedactivities for which the funds are to be used and the projected cost of theproject.

(2)        The amount of grantfunds requested for these activities.

(3)        Projections of thedollar amount of private investment that is expected to occur in the designateddowntown area as a direct result of the city's proposed activities.

(4)        Whether local publicdollars are required to match any grant funds according to the provisions ofsubdivision (g)(2) of this section, and if so, the amount of local public fundsrequired.

(5)        An explanation ofthe nature of the private investment in the designated downtown area that willresult from the city's proposed activities.

(6)        Projections of the timeneeded to complete the city's proposed activities.

(7)        Projections of thetime needed to realize the private investment that is expected to result fromthe city's proposed activities.

(8)        Identification ofthe proposed source of funds to be used for repayment of any loan obligations.

(9)        Any additional orsupplemental information requested by the Division.

(d)        A committee,comprised of representatives of: the Division of Community Assistance of theDepartment of Commerce, the North Carolina Main Street Program, the LocalGovernment Commission, and the League of Municipalities shall do each of thefollowing:

(1)        Review a city'sapplication.

(2)        Determine whetherthe activities listed in the application are activities that are eligible for agrant.

(3)        Determine whichapplicants are selected to receive funds from the Main Street Solutions Fund.

A city whose application isdenied may file a new or amended application.

(e)        A Main Street Citythat is selected may not receive a grant pursuant to this section totaling lessthan twenty thousand dollars ($20,000) or more than three hundred thousanddollars ($300,000).

(f)         Repealed bySession Laws 2009‑451, s. 14.10, effective July 1, 2009.

(g)        (1)        Acity that has been selected to receive a grant shall use the full amount of thegrant for the activities that were approved pursuant to subsection (d) of thissection. Funds are deemed used if the city is legally committed to spend thefunds on the approved activities.

(2)        If a city hasreceived approval to use the grant for public improvements or publicinfrastructure, that city shall be required to raise, before funds for thesepublic improvements may be drawn from the city's account, local public funds tomatch the amount of the grant from the Main Street Solutions Fund on the basisof at least one local public dollar ($1.00) for every one dollar ($1.00) fromthe Main Street Solutions Fund. This match requirement applies only to thosefunds received for public improvements or public infrastructure and is inaddition to the requirement set forth in subdivision (1) of this subsection.

(3)        A city that fails tosatisfy the condition set forth in subdivision (1) of this subsection shalllose any funds that have not been used within three years of being selected.These unused funds shall be credited to the Main Street Solutions Fund. A citythat fails to satisfy the conditions set forth in subdivisions (1) and (2) ofthis subsection may file a new application.

(4)        Any funds repaid orcredited to the Main Street Solutions Fund pursuant to subdivision (3) of thissubsection shall be available to other applicants as long as the Main StreetSolutions Fund is in effect.

(h)        Repealed by SessionLaws 2009‑451, s. 14.10, effective July 1, 2009.

(i)         After a projectfinanced in whole or in part pursuant to this section has been completed, thecity shall report the actual cost of the project to the Department of Commerce.If the actual cost of the project exceeds the projected cost upon which thegrant was based, the city may submit an application to the Department ofCommerce for a grant for the difference. If the actual cost of the project isless than the projected cost, the city shall arrange to pay the difference tothe Main Street Solutions Fund according to terms set by the Department.

(j)         Inspection of aproject for which a grant has been awarded may be performed by personnel of theDepartment of Commerce. No person may be approved to perform inspections who isan officer or employee of the unit of local government to which the grant wasmade or who is an owner, officer, employee, or agent of a contractor orsubcontractor engaged in the construction of any project for which the grantwas made.

(k)        The Department ofCommerce may adopt, modify, and repeal rules establishing the procedures to befollowed in the administration of this section and regulations interpreting andapplying the provisions of this section, as provided in the AdministrativeProcedure Act.

(l)         The Department ofCommerce and cities that have been selected to receive a grant from the MainStreet Solutions Fund shall prepare and file on or before September 1 of eachyear with the Joint Legislative Commission on Governmental Operations and theFiscal Research Division a consolidated report for the preceding fiscal year concerningthe allocation of grants authorized by this section.

The portion of the annualreport prepared by the Department of Commerce shall set forth for the precedingfiscal year itemized and total allocations from the Main Street Solutions Fundfor grants. The Department of Commerce shall also prepare a summary report ofall allocations made from the fund for each fiscal year; the total fundsreceived and allocations made and the total unallocated funds in the Fund.

The portion of the reportprepared by the city shall include each of the following:

(1)        The total amount ofprivate funds that was committed and the amount that was invested in thedesignated downtown area during the preceding fiscal year.

(2)        The total amount oflocal public matching funds that was raised, if required by subdivision (g)(2)of this section.

(3)        The total amount ofgrants received from the Main Street Solutions Fund during the preceding fiscalyear.

(4)        Repealed by SessionLaws 2009‑451, s. 14.10, effective July 1, 2009.

(5)        A description of howthe grant funds and funds from private investors were used during the precedingfiscal year.

(6)        Details regardingthe types of private investment created or stimulated, the dates of thisactivity, the amount of public money involved, and any other pertinentinformation, including any jobs created, businesses started, and number of jobsretained due to the approved activities.

(m)       The Department ofCommerce may use up to fifty thousand dollars ($50,000) of the funds in theMain Street Solutions Fund for expenses related to the administration of theFund.  (1989, c.751, s. 9(c); c. 754, ss. 40(b)‑(m); 1991, c. 689, s. 140(a); 1991 (Reg.Sess., 1992), c. 959, s. 72; 1993, c. 553, ss. 50, 51; 1997‑456, s. 27;2009‑451, s. 14.10.)