GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 220

Short Title:  Main Street Fund.	(Public)
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Sponsors: Representatives James, R. Thompson; Flaherty, Bowman, Buchanan, Church, Fitch, Fletcher, Gardner, Holt, Judy Hunt, and Robinson.
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Referred to:  Government.
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February 15, 1989

A BILL TO BE ENTITLED
AN ACT TO CREATE THE MAIN STREET FUND.
The General Assembly of North Carolina enacts:
Section 1.  A fund to be known as the Main Street Fund is established.  Moneys appropriated to, credited to, or paid to this fund shall be deposited with the Department of Natural Resources and Community Development.  This fund shall be administered by the Department of Natural Resources and Community Development.  The Department of Natural Resources and Community Development shall be responsible for receipt and disbursement of all moneys as provided in this act.  Interest earnings shall be credited to the General Fund.
Sec. 2.  Moneys in the Main Street Fund shall be available to the following North Carolina Main Street Cities affiliated with the National Main Street Center Program:  New Bern, Salisbury, Shelby, Tarboro, Washington, Clinton, Morganton, Rocky Mount, Statesville, Wilson, Goldsboro, Kinston, Reidsville, Sanford, Wadesboro, Henderson, Hendersonville, Lenoir, Smithfield, Waynesville, Elizabeth City, Lumberton, Mooresville, Mt. Airy, and Burlington.  Moneys in the Main Street Fund shall be used for the following eligible activities:
(1)	The acquisition or rehabilitation of properties in connection with private investment in a designated downtown area;
(2)	The establishment of revolving loan programs for private investment in a designated downtown area;
(3)	The subsidization of interest rates for these revolving loan programs;
(4)	The establishment of facade incentive grants in connection with private investment in a designated downtown area;
(5)	Market studies, design studies, design assistance, or strategic planning efforts, provided the activity can be shown to lead directly to private investment in a designated downtown area;
(6)	Any approved project that provides construction or rehabilitation in a designated downtown area and can be shown to lead directly to private investment in the designated downtown area; and
(7)	Public improvements and public infrastructure within a designated downtown area, provided these improvements are necessary to create or stimulate private investment in the designated downtown area.
Sec. 3.  (a)	A North Carolina Main Street City may apply for a conditional grant from the Main Street Fund by submitting an application to the Main Street Center in the Division of Community Assistance, Department of Natural Resources and Community Development.  The application shall list:
(1)	The proposed activities for which the moneys are to be used;
(2)	The amount of conditional grant moneys requested for these activities;
(3)	Projections of the dollar amount of private investment that is expected to occur in the designated downtown area as a direct result of the City's proposed activities;
(4)	Whether local public dollars are required to match any grant moneys according to the provisions of Section 5(b) of this act, and if so, the amount of local public dollars required;
(5)	Projections of the time needed to get private investors to make a written commitment regarding their investment;
(6)	An explanation of the nature of the private investment in the designated downtown area that will result from the City's proposed activities;
(7)	Projections of the time needed to complete the City's proposed activities; and
(8)	Projections of the time needed to realize the private investment that is expected to result from the City's proposed activities.
The applicant shall furnish additional or supplemental information upon written request.
(b)	A committee, comprised of representatives of:  the Division of Community Assistance of the Department of Natural Resources and Community Development, the North Carolina Main Street Program, the Local Government Commission, and the League of Municipalities shall:
(1)	Review a Main Street City's application,
(2)	Determine whether the activities listed in the application are activities that are eligible for a conditional grant, and
(3)	Determine which applicants are selected to receive a grant from the Main Street Fund.
(c)	A Main Street City whose application is denied may file a new or amended application.
Sec. 4.  (a) No Main Street City may receive grants pursuant to this act totaling more than three hundred thousand dollars ($300,000).
(b)	The Department of Natural Resources and Community Development shall establish an account in the amount of the conditional grant for each Main Street City that is selected to receive a grant.  These moneys shall be disbursed as expended through warrants drawn on the Department of Natural Resources and Community Development.
Sec. 5.  (a)	A Main Street City that has been selected to receive a grant shall:
(1)	Receive written commitment from private investors of the dollar amount of private investment in the designated downtown area that the private investors will make as a result of that City's activities.  The amount of committed private funds shall match the amount of the conditional grant from the Main Street Fund on the basis of at least five private dollars ($5.00) for every one dollar ($1.00) from the Main Street Fund.
(2)	Use the full amount of the grant for the activities that were approved pursuant to Section 3 of this act.  Grant money is deemed used if the Main Street City is legally committed to spend the moneys on the approved activities.
(b)	If a Main Street City has received approval to use grant moneys for public improvements or public infrastructure, that City shall be required to raise, before grant moneys for these public improvements may be drawn from the City's account, local public funds to match the amount of the conditional grant from the Main Street Fund on the basis of at least one local public dollar ($1.00) for every one dollar ($1.00) from the Main Street Fund.  This match requirement applies only to those grant moneys received for public improvements or public infrastructure and is in addition to the requirement that the City receive written commitment for private investment in accordance with subdivision (1) of subsection (a) of this section.
(c)	A Main Street City that fails, within three years of being selected or by May 1, 1993, whichever occurs first, to actually raise the level of private investment for which the City received written commitment shall be required to pay within 45 days to the Main Street Fund an amount equal to that portion of the grant that was not matched as required.  The Department of Natural Resources and Community Development shall determine whether this condition has been satisfied, and if it has not been satisfied, determine the amount the Main Street City shall be required to pay to the Main Street Fund.
(d)	A Main Street City that fails to satisfy the condition set forth in subsection (a)(2) of this section shall lose any grant moneys that have not been used within three years of being selected or June 29, 1993, whichever occurs first.  These unused grant moneys shall be credited to the Main Street Fund.
(e)  Any moneys paid or credited to the Main Street Fund pursuant to subsections (c) or (d) of this section shall be available to other applicants as long as the Main Street Fund is in effect.  The Main Street City that fails to satisfy the conditions of its grant may file a new application.
Sec. 6.  Inspection of a project for which a grant has been awarded may be performed by personnel of the Department of Natural Resources and Community Development.  No person may be approved to perform inspections who is an officer or employee of the unit of local government to which the grant was made or who is an owner, officer, employee, or agent of a contractor or subcontractor engaged in the construction of any project for which the grant was made.
Sec. 7.  The Department of Natural Resources and Community Development may adopt, modify, and repeal rules establishing the procedures to be followed in the administration of this act and regulations interpreting and applying the provisions of this act, as provided in the Administrative Procedure Act.
Sec. 8.  The Department of Natural Resources and Community Development and Main Street Cities that have been selected to receive a grant from the Main Street Fund shall prepare and file on or before July 31 of each year the Main Street Fund is in effect with the Joint Legislative Commission on Governmental Operations a consolidated report for the preceding fiscal year concerning the allocation of grants authorized by this act.
(b)	The portion of the annual report prepared by the Department of Natural Resources and Community Development shall set forth for the preceding fiscal year itemized and total allocations from the Main Street Fund for grants.  The Department of Natural Resources and Community Development shall also prepare a summary report of all allocations made from the fund for each fiscal year; the total funds received and allocations made; and the total unallocated funds in the Fund.
(c)	The portion of the report prepared by the Main Street City shall include:
(1)	The total amount of private funds that were committed and the amount that were invested in the designated downtown area during the preceding fiscal year;
(2)	The total amount of local public matching funds that were raised, if required by Section 5 of this act;
(3)	The total amount of the grant received from the Main Street Fund during the preceding fiscal year;
(4)	A description of how the grant moneys and funds from private investors were used during the preceding fiscal year;
(5)	Details regarding the types of private investment created or stimulated, the dates of this activity, the amount of public money involved, and any other pertinent information, including any jobs created, businesses started, and number of jobs retained due to the approved activities.
Sec. 9.  There is appropriated from the General Fund to the Main Street Fund created in Section 1 of this act the sum of three million five hundred thousand dollars ($3,500,000) for the fiscal year 1989-90 and three million five hundred thousand dollars ($3,500,000) for the fiscal year 1990-91 for the purposes set forth in this act.  Any moneys remaining in the Main Street Fund on June 30, 1993, shall revert to the General Fund.
Sec. 10.  This act is effective upon ratification.