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Planning and Feasibility Studies – Grant Guidelines

Purpose

The planning and feasibility study grant program is designed to provide funding to determine the feasibility of a project or to plan for a project that will be located in Colorado. Such projects will need to meet an economic development objective and if implemented, will need to create new permanent jobs and/or retain existing jobs primarily for low- and moderate-income persons.

Eligible Applicant

In order to be eligible, the proposed project must be located in a non-entitlement city or county in Colorado. An eligible city or county that has an “open Community Development Block Grant (CDBG) contract” must submit the request for funding for projects located within its jurisdiction. Contact the Colorado Office of Economic Development and International Trade (OED/IT) to determine the city or county's eligibility.

Funding Source

The funds utilized for this program are federal funds; therefore, there are federal and state requirements that must be met.

Funding Amounts

OED/IT has a total of $75,000 available on an annual basis to fund requests. For 2004 only, a total of $150,000 will be made available during two competitive cycles.

Application Process

Two competitive cycles will be held [after the Colorado Agricultural Value Added Development (CAVAD) Program has completed its competitive cycles]. The first application deadline date will be July 30, 2004 with decisions expected in August 2004. The second application deadline date will be October 30, 2004 with decisions expected in December 2004.
Prior to submitting a request, project representatives will need to complete a specific project consultation with OED/IT Finance staff.
A non-entitlement city or county must apply in conjunction with a city/county(ies) that has an existing open CDBG contract with the state of Colorado. Business Loan Funds may be able to assist with this effort.

If the existing “open” CDBG contract does not identify project development studies/plans as an eligible activity, the city/county(ies) with the existing “open” CDBG contract must go through the public hearing process in all areas covered by the existing contract, take public input and request an amendment to the existing contract to allow for project development studies/plans as an eligible activity.

Applications must be substantially complete as determined by OED/IT Finance staff.
Final funding decisions are made by the Governor’s Financial Review Committee.

Criteria for Consideration in Granting Awards

Consistency with community’s economic and community development strategies
Impact of the project on the community
Impact of the project on the region
Potential benefit to low-to-moderate income population
Local support
Likelihood of project completion
CDBG funds awarded to community for economic development purposes previously
Level of economic distress in community
Unique features of project

Project Components

Preferable that funds not be available from the Colorado Department of Agriculture, the United States Department of Agriculture (Rural Development), the United States Department of Commerce Economic Development Administration (EDA), the Colorado Economic Development Commission or other readily available sources for this type of study
Preferable maximum CDBG grant of $20,000 per project
Preferable cash matching funds of $1:$1
Preferable that matching funds for feasibility study/planning activity be in place
Preferable that the proposed project should have an entity lined up that is willing to implement the project
Preferable that documentation of available financing or letters of interest/intent in funding the proposed project (if proven feasible) be submitted
Preferable that public discussion will have taken place on project requesting funding and the intent to request feasibility/planning study funding.
Not eligible includes: projects involving key historic or commercial importance (typically defined as downtown revitalization/improvements) to a community or a neighborhood (since the state’s Consolidated Plan states that the Department of Local Affairs will assist those projects)
If approved, an Exempt Environmental Review must be submitted by the Designated Environmental Certifying Officer for the City or County with the existing open CDBG contract.
If approved, the City or County with the existing open CDBG contract must comply with federal procurement requirements (most likely “small purchase procedures”) and documentation of final costs.
Pro-rata reduction in state’s funding percentage if all funds are not needed to complete the study/plan
Quarterly Report required
Funds will be disbursed as costs are incurred or on a reimbursement basis per federal guidelines. Supporting cost documentation must be maintained. Expenses may not be incurred prior to the execution of a contract amendment authorizing the study/plan and prior to the completion of an environmental review.
The Governor’s Financial Review Committee reserves the right to increase or decrease the amount of requested funding based on its findings and the availability of funds.
Final terms of approval, including a requirement to submit a copy of the plan or study to OED/IT, will be included in the executed contract amendment if approved.

Application Requirements (if available):

A letter from a non-entitlement city or county in conjunction with a city/county(ies) that has an existing open CDBG contract with the state of Colorado requesting funding for the project.

Name of proposed project
Location of project
Amount of grant funds requested
Amount, form and documentation of matching funds for feasibility/planning study
Description of what will be studied and the need for the study
Description of entity that will develop project if it is determined to be feasible
Description of any competition in area of study, if applicable
Description of what type of entity is expected to complete the study (such as staff, consultant or university staff)
A budget
Statement describing the extent to which the proposed project or concept has already been studied
Address how project will meet “Criteria for Consideration” as listed above, to include detail on jobs, payroll, capital investment and spinoff industries
Proposed timeline for the project
Professional/industry references from people who are familiar with the project
Address how project will meet “Project Components” as listed above
A draft Request for Proposal (RFP) that would be issued by lead city/county with “open contract”
Letters of support, to also include financing or letters of interest/intent in funding the proposed project (if proven feasible)

For further information, please contact:

Colorado Office of Economic Development and International Trade
Business Finance Division
Ken Gabriel or Alice Kotrlik
1625 Broadway, Suite 1700
Denver, Colorado 80202
(303) 892-3840
(303) 892-3848 fax
1-800-659-2656 TDD
Ken.Gabriel@state.co.us
Alice.Kotrlik@state.co.us