NEW AND EXPANDED ECONOMIC DEVELOPMENT TOOLS

RESULTING FROM FEDERAL STIMULUS AND RECOVERY LEGISLATION

Indiana Economic Development Corporation Update

August 26, 2009

Indiana ARRA Activity By County

• Indiana ARRA Activity Map http://in.gov/gov/countyarra.htm

Online Project Survey

• The state, in conjunction with Ball State University, created an online project survey to gather information about potential community projects.

• A list of more than 9,000 project ideas sorted alphabetically by county is available at: http://www.in.gov/gov/files/Press/040709.pdf.

• The survey was designed to serve only as a tool to gather information and should not be considered an application for funding. Due to federal program requirements, most projects will not be eligible for funding.

Economic Development Administration (EDA)

• EDA has standard program, disaster & stimulus funds available for eligible projects • The state submitted a priority project list to EDA

– Local economic impacts– “Shovel Ready” projects

• Regional planning commissions apply for grants on behalf of local communities • For more information about EDA programs, contact David Terrell at (317) 232-8856

or at dterrell@ocra.IN.gov.

INDOT• Highway funding appropriation is based on a federally-

mandated formula requiring 60% to be filtered through the state to Municipal Planning Organizations (MPOs) and 40% through the state to Non-Entitlement Communities (county highway departments without MPO jurisdiction).

• MPOs have more autonomy on how funds can be spent than Non-Entitlement Communities, who usually partner more closely with the state to determine project viability.

• Eligible roads are mainly determined by federal government restrictions based on a hierarchy of functional road systems (principal arterials, minor arterials, collector roads, local roads).

• For more information about transportation funding programs, contact David Holtz at (317) 233-1524 or at dholtz@indot.IN.gov.

INDOT Links

• Indiana MPO list: http://www.indianampo.com/MPO/mpos.htm

• Transportation Infrastructure Distribution of Funds: http://www.in.gov/gov/2991.htm

Wastewater

• Projects are managed by Indiana Finance Authority through the state revolving loan fund

• Low interest loans to municipalities and publicly-owned facilities

• A list of State Revolving Fund Wastewater Stimulus Projects is available at : http://www.in.gov/ifa/arra.htm

• Communities may submit applications for future funding opportunities

• For more information about the SRF Loan Program process, contact Shelley Love at (317) 232-4396 or at slove@ifa.in.gov.

Drinking Water

• Projects are managed by Indiana Finance Authority through the state revolving loan fund

• Low interest loans to municipalities and publicly-owned facilities

• A list of State Revolving Fund Drinking Water Stimulus Projects is available at : http://www.in.gov/ifa/arra.htm

• Communities may submit applications for future funding opportunities

• For more information about the SRF Loan Program process, contact Sarah Hudson at (317) 232-8663 or at sahudson@ifa.in.gov.

Broadband• Targeted to local governments and higher education

institutions• Programs include

– Broadband infrastructure program ($1.2 B nationwide)– Public computing center ($50 M nationwide)– Broadband adoption program ($150 M nationwide)

• Applications were due August 14, 2009 for 1st of 3 application rounds

• State applied for $3.5 M federal grant to create the state broadband map

• If you have any questions on OCRA’s broadband Internet initiatives, contact Geoff Schomacker at (317) 232-8909 or gschomacker@ocra.in.gov.

Weatherization Assistance Program (WAP)

• Program is administered by Indiana Housing and Community Development Authority (IHCDA)

• Indiana Department of Administration (IDOA) issued a Request for Proposal (RFP) to bulk purchase hot water heaters, furnaces, cellulosic & fiberglass insulation

• Program is currently pending approval by US Department of Energy

• Submit program questions online at: http://www.in.gov/ihcda/2523.htm.

Recovery Zones

• Each county and large municipality may designate a recovery zone

• Characteristics include:– Significant poverty, unemployment, home foreclosure

rates or general distress– Economically distressed by reason of a military

installation closure or realignment

Recovery Zones Economic Development (ED) Bonds (Government Projects)

• Indiana is receiving $313 M • Each county and large municipality will receive its allotment

of ED bonds • Bonds are issued at taxable interest rates. • The government provides a rebate of 45% of interest paid

on bonds• Uses include capital expenditures, such as public

infrastructure, construction of public facilities and expenditures for job training and education

• Bonds must be issued by January 1, 2011

Recovery Zone Facility Bonds (for Privately Used or Owned facilities)

• Indiana is receiving $469,621,000 (cap) for tax exempt bonds on privately used or owned projects located in designated recovery zone areas

• Uses include financing any depreciable business property constructed, reconstructed, renovated or acquired by purchase in the recovery zone after the date of designation

• Bonds must be issued prior to January 1, 2011

• For more information about Recovery Zone bonds, contact Cindy Pierson at (317) 233-4335 or at cpierson@ifa.IN.gov.

Energy

• State received stimulus funds through the Office of Energy, which include:– Energy Efficiency and Conservation Block Grant

(EECBG) (http://www.in.gov/ihcda/2523.htm)– State Energy Program (http://www.in.gov/oed/2583.htm)

• Examples of eligible projects include wind turbine manufacturers, lithium-ion battery producers, hybrid automotive OEMs, smart grid, etc

• For more information about energy programs, contact Brandon Seitz at (317) 234-3158 or at bseitz@oed.in.gov

Competitive Grants

Indiana’s "Funding Opportunities" page is a one-stop resource for small businesses, local governments and other entities seeking to apply for competitive grants administered by the federal government: http://www.in.gov/gov/3068.htm

Federal grant opportunities are available at:

http://www.grants.gov/aboutgrants/grant_categories.jsp

Questions?

Pam Fisher

Director, Regulatory Affairs

Indiana Economic Development Corporation

317-232-8893

pfisher@iedc.in.gov

David Meehan

Policy Analyst

Indiana Economic Development Corporation

317-233-5121

dmeehan@iedc.in.gov