Commerce Finance Center

CDBG Economic Development
George Sherrill
Commerce Finance Division
Department of Commerce
Finance Division
Provides financial information and assistance to local
government and business clients
Works with many contacts and resources including
Business/Industry and other State staff, local and regional
economic development professionals, and numerous public and
private financial providers
Administers the CDBG Economic Development Program
CDBG Economic Development
Provides funds for local
governments with
projects that involve a
specific for profit
business that creates or
retains jobs
CDBG National Objective
National objective for CDBG-economic
development project is benefit to persons
qualifying as low and moderate income
(LMI). Minimum for ED is 60%
LMI benefit is demonstrated through the
creation of new full-time jobs or retention of
existing jobs in jeopardy of being lost.
Grant Projects
Grants to local government to assist with construction of
infrastructure
Water, sewer, street, natural gas lines, rail or municipal electrical
Grants fund up to 75% of the need (100% for 25 most
distressed counties)
Local 25% cash match can come from private or public
funds but must pass through local government
Funding Levels
CDBG $ per job is based on level of distress in county where
project located
Maximum $1,000,000 (Tier 1 & 2 counties)
$750,000 (Tier 3 counties)
$10,000-$15,000/job for tax credit eligible business types and
$4,000-$10,000/job for other business types
Target Distribution Center Project
City of Newton
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Infrastructure Needed: Water, Sewer, Electrical
Source and Use of Funding:
• CDBG
• Industrial Development Fund (IDF)
• NC Rural Center
• City of Newton
Private Investment:
• Land and Building
• Machinery and Equipment
• Jobs Pledged by Target:
$1,000,000
$ 400,000
$ 500,000
$ 610,000
$70,000,000
$30,000,000
450 (2 year period)
Building Reuse Loan Program
•The objective is to return vacant industrial/commercial
buildings to economic use
•Building must have been vacant for 30 consecutive days or
more
•Maximum award is $750,000 with award determined by
number of jobs created ($20,000 per job for tax credit eligible
business and $12,000 per job for non-tax credit eligible
business)
•Local government makes forgiven loan to business. No
repayment if company maintains jobs for 5 years
•Loan is secured by Promissory Note and Deed of Trust
Shalag US, Inc. Building Reuse Project
Granville County
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Source and Use of Funding:
• CDBG
Private Investment:
• Building Renovation (60,000 square feet)
• Machinery and Equipment
• Jobs Pledged by Shalag US
$750,000
$2,800,000
$24,300,000
42 (2 year period)
Shell Building Loans
Local government applicants
50% of funds needed for shell building construction
Loan to local government at 2% interest
5 year term with yearly payments each year on July 1st
(interest only payments for the first two years)
Up to $1 million in all counties
Eligible CDBG loan amount projected at $35,000 per
job
Pender Progress Shell Building Project
Pender County
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Source and Use of Funding:
• CDBG (Loan)
• Four County EMC
• Pender County
Building Size is 40,000 square feet
Located in Pender Progress Industrial Park
Public water and sewer
Natural gas and electric service
Less than 3 miles to Interstate 40
$655,250
$500,000
$173,250
$1,328,500
Compliance Issues
Davis-Bacon
Fair Housing
Environmental Review
Citizen Participation
Equal Opportunity laws/regulations
Procurement
CDBG Economic Development Contacts
George Sherrill Section Chief 919-715-6559
[email protected]
Kenny Stagg Grant Manager 919-733-5397
[email protected]