2013 RURAL ECONOMIC DEVELOPMENT GRANT PROGRAM

Summary:

Program: ACA 2013 Rural Economic Development Grant Program Total Funding: $1.5 million Program Release Date: August 28, 2012 Applications Due: Monday, October 1, 2012 4:00 PM. (Arizona time) Questions Due: Friday, September 14, 2012 4:00 PM. (Arizona time)

Awards Announced (est.): Thursday, November 1, 2012 ACA Contact: Shawnda Henderson

Grants/Procurement Manager Arizona Commerce Authority 602-845-1237 shawndah@azcommerce.com

Section 1: The Rural Economic Development Grant Program Overview

1.1 Purpose

The Rural  Economic  Development  Grant  Program  (the  “Program”) helps rural communities with limited budgets initiate and sustain economic development projects within their jurisdictions that directly result in base industry job growth and capital investment. Grants will be issued to rural cities, towns, counties, non-profit economic development groups and tribal communities for use in projects that involve the attraction of new businesses from outside Arizona and/or the expansion of existing Arizona businesses. Successful applications to the Program  (“Applications”)  will  be aligned with these Program goals and will identify projects that represent cost effective opportunities for achieving them. The Program will utilize a competitive process, with each Application comprehensively analyzed by an evaluation committee.

1.2 Available Funding

The total amount of funds available for distribution under the Program is $1,500,000. As further  described  herein,  funds  will  be  allocated  based  on  the  applications’  alignment  with  program goals and satisfaction of the other criteria set forth herein. The ACA reserves the right to award less than $1,500,000 in grants depending on the number and quality of Applications received.

1.3 Eligible Projects

Grants will be awarded for private sector business creation, expansion or location projects (“Projects”).    Applications  may  seek  funding  for  more  than  one  Project. Projects must be completed within 12 months of commencement. (Grant awards are anticipated to be finalized in November 2012.)

1.4 Eligible Applicants

Program grants (“Grants”)  will  be  awarded  only to (i) rural communities and/or (ii) non-profit organizations officially charged with performing economic development work for a rural community or communities. Grant recipients (“Grantees”)  will pass Grant funds through to the Projects indentified in their Applications. A rural community is (i) any Arizona city or town with a population of 50,000 or less based on 2010 census data, (ii) any Arizona county with a population of 750,000 or less based on 2010 census data or (iii) a Native American tribe located in Arizona.

Section 2: Application Submission Process

2.1 Application Submission

Entities  submitting  Applications  (“Applicants”) must provide five (5) paper copies and one (1) electronic copy of each Application. Electronic copies may be sent by E-mail or delivered on a DVD or CD. Both electronic and hard copies must be received by the due date and time indicated. Electronic copies may be delivered via email to shawndah@azcommerce.com.

Applications must be submitted by an authorized representative of the eligible organization. Each Applicant may submit only one Application.

2.2 Deadline for Submission

The deadline to submit an Application is Monday, October 1, 2012 4:00 PM. (Arizona time)

2.3 Deadline for Questions

The deadline to submit questions about the Application requirements is Friday, September 14, 2012. Questions must be submitted in writing.

2.4 Awardees Selected

Awardees are anticipated to be selected on or around November 1, 2012.

Section 3: Application Organization

A complete Application will include the following sections:

Application Summary (on provided form - see Exhibit A)

Applicant’s  Qualifications  

Project Narrative

Project Budget

Letters of Support

3.1 Project Summary

The Project Summary must be completed on the form attached as Exhibit A.

3.2 Applicant’s  Qualifications  

The Applicant’s  Qualifications  section  must  include (i) a one (1) page narrative summary of the Applicant’s  team  that  will be responsible for administering the Grant and overseeing the Project and (ii) an organization chart showing the Applicant’s  team members within the  Applicant’s  overall reporting hierarchy.

3.3. Project Narrative

The Project Narrative should not exceed five (5) pages and must include the following elements.

3.3.1 Project Title

The title of the proposed Project must briefly describe the nature of the Project.

3.3.2 Project and Project Timeline

Describe the Project in detail, including all Project activities and who will perform them. Provide a Project timeline showing the anticipated timing of key Project activities.

3.3.3 Project Outcomes

Describe, in detail, the intended Project outcomes and explain how the Project activities will lead to those outcomes. Examples of desirable Project outcomes include job creation, wage increases, employee training, capital investment (other than with Grant funds), foreign direct investment and increased exports. The Project outcomes must be identified in the Project timeline. Grant payments will be tied to the Project outcomes.

3.3.4 Award Request and Project Budget

Indicate the amount of the Grant requested and provide a line item budget for the proposed use of the Grant funds. The budget must align with the Project work plan, timeline and outcomes. Expenses not delineated in the Project budget will not be eligible for reimbursement with Grant funds except by special exception. Examples of reimbursable Projects costs include expenses associated with the following activities:

Capital investment, including without limitation machinery, equipment and plant construction, expansion or rehabilitation

Employee recruitment and/or training

Professional and outside services related to a base employer expansion/relocation

Examples of costs that will not be reimbursed with Grant funds include but are not limited to expenses associated with the following activities:

Paying down existing debt

Application preparation

Political activities

Studies or speculative projects

Incubators

Over-the-road or passenger vehicles

Wages

3.3.5 Applications with Multiple Projects

If an Application seeks funding for multiple Projects, the sections above should be separately completed for each Project.

3.3.6 Additional Information

The ACA reserves the right to seek additional information or clarification from Applicants, in writing or verbally.

Section 4: Evaluation Criteria

Applications will be evaluated on the following criteria:

Economic impact: Alignment of Project outcomes with Program goals and objectives

o Especially job creation, particularly in base industries; increased wages; employee training; capital investment; foreign direct investment and increased exports investment

Leveraged dollars

o Contribution(s) from the Applicant or other funding sources or partners

Quality of Project Plan

o Accuracy, clarity, thoroughness and appropriateness of work plan, timeline and budget

Demonstrated Local support

Support letters from local business, community and elected leadership

Applicant Qualifications

o Track record of administering projects that align with the economic development goals of the Program

Section 5: Application Review Process

Each complete Application from an eligible Applicant for an eligible Project will be evaluated by a panel of qualified reviewers. Applications will be scored and ranked competitively based on the criteria listed in Evaluation Criteria.

Section 6: Award Administration Information

6.1 Notice of Award / Grant Agreement

Upon selection of an Application for a Grant, a notice of award letter with the amount of the Grant and a Grant agreement setting forth the terms and conditions of the Grant ("Grant Agreement") will be forwarded to the successful Applicant. The Grant Agreement will incorporate the Application, these terms and conditions of the Program and the ACA’s  standard  terms and conditions for Grants (please contact the ACA if you would like a copy of these terms and conditions). The Grant Agreement will also precisely identify the conditions precedent of receiving Grant payments, including Project outcomes as applicable. The Grant Agreement must be signed and returned to ACA. If the successful Applicant and the ACA do not agree on the terms and conditions of the Grant Agreement within a reasonable time, the Grant offer will be rescinded and the ACA may consider whether to award the forfeited funds to another Applicant.

6.2 Term of Agreement

Grant funds may not be used to reimburse expenses incurred prior to the date a Grant is awarded. Projects must be started and completed within one year from the time a Grant is awarded. Any portion of a Grant award not properly requested within that time will be forfeited, except that the ACA in its sole and absolute discretion may approve requests to extend the Project period for up to 12 months. A Grant must be closed before a Grantee can apply for another Grant in a future Program cycle.

6.3 Programmatic and Financial Reports and Outcomes Tracking

Grantees shall submit a monthly program activity report to ACA that provides updates on Project activity outlined in the Application. This report is due to ACA by the 15th of each month for the previous month. The Grantee shall use the forms provided by the Grantor (ACA) to submit such reports. The form will be provided to the Grantee upon receipt of the signed Grant Agreement. The report shall contain such information as is deemed necessary by the ACA. The ACA may request additional information from time to time and/or may elect to undertake independent research regarding Project progress, and in either case the Grantee shall be obligated to cooperate fully with such efforts to obtain or verify information. Grantees shall be responsible for the accuracy of such reports and for ensuring Project compliance with the terms and conditions of the Grant Agreements.

6.4 Financial Reimbursement

Grant payments will be made by the ACA to the Grantee for distribution to the Project or Projects identified in the Grant Agreement. As identified in the Grant Agreement, payments will be made on a cost-reimbursement basis and/or on the basis of outcome achievement. Reimbursement amounts shall be determined on the cash basis of accounting. Payment requests shall be submitted no more frequently than monthly and no less frequently than quarterly.

Section 8: Transparency

As the ACA is subject to Arizona Public Records laws (A.R.S. §39-101, et seq.), information submitted to the ACA may be subject to disclosure in response to public records requests. However, the Public Records law does provide exceptions for business information that, if released, would undermine the business’  competitive position, and for proprietary or trademark (or copyright) protected information. The Public Records law also permits us to redact (block out) personal information such as social security numbers before documents are released. The ACA will attempt to preserve the confidentiality of information to the extent permitted by law, but cannot guarantee that such information will not be disclosed, and is not responsible for the consequences of such disclosure. Additionally, the ACA specifically hereby reserves the right to use the following information in its marketing materials, including without limitation press releases: 1) project name and type, 2) Grantee and project company names, 3) projected economic impact of the project including without limitation number of jobs to be created, 5) grant uses and 5) amount and other terms of the grant.

EXHIBIT A

2013 RURAL GRANT ECONOMIC DEVELOPMENT GRANT PROJECT SUMMARY

(to be included with all submitted Applications)

APPLICANT INFORMATION

Applicant Entity Name:

Address:

Contact Name & Title:

Contact Email:

Contact Phone:

PROJECT INFORMATION

Does your Application include: __One Project __Multiple Projects

Please complete below for each project if multiple projects are included.

Project Name:

Brief Project Description:

Grant Amount Requested:

Projected Outcomes

Number of new jobs:

Average Wages:

New Payroll:

Capital Investment:

Other: