2009 North Carolina Code
Chapter 143B - Executive Organization Act of 1973.
§ 143B-472.35. Establishment of fund; use of funds; application for grants; disbursal; repayment; inspections; rules; reports.

Part 15. Main Street Solutions.

§ 143B‑472.35.  Establishment of fund; use of funds; application for grants; disbursal; repayment; inspections; rules; reports.

(a)        A fund to be known as the Main Street Solutions Fund is established in the Department of Commerce. This Fund shall be administered by the Department of Commerce. The Department of Commerce shall be responsible for receipt and disbursement of all funds as provided in this section. Interest earnings shall be credited to the Main Street Solutions Fund.

(b)        Funds in the Main Street Solutions Fund shall be available to micropolitan cities in development tier two and three counties in the State. For purposes of this section, a "micropolitan city" is a city located within the State with a population, according to the most recent U.S. census, of between 10,000 and 50,000 people. Funds in the Main Street Solutions Fund shall be used for any of 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.

(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.

(c)        Any micropolitan city located within a development tier two or three county may apply for assistance from the Main Street Solutions Fund by submitting an application to the Main Street Center in the Division of Community Assistance, Department of Commerce. Any city affiliated with the North Carolina Main Street Center Program may apply for a grant for a proposed project.

(c1)      The application shall include each of the following:

(1)        A copy of the consensus local economic development plan developed by the micropolitan city in conjunction with the Department's Main Street Program and the city's regional economic development commission or its local council of government or both.

(1a)      The proposed activities for which the funds are to be used and the projected cost of the project.

(2)        The amount of grant funds 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 funds according to the provisions of subdivision (g)(2) of this section, and if so, the amount of local public funds required.

(5)        An explanation of the nature of the private investment in the designated downtown area that will result from the city's proposed activities.

(6)        Projections of the time needed to complete the city's proposed activities.

(7)        Projections of the time needed to realize the private investment that is expected to result from the city's proposed activities.

(8)        Identification of the proposed source of funds to be used for repayment of any loan obligations.

(9)        Any additional or supplemental information requested by the Division.

(d)        A committee, comprised of representatives of: the Division of Community Assistance of the Department of Commerce, the North Carolina Main Street Program, the Local Government Commission, and the League of Municipalities shall do each of the following:

(1)        Review a city's application.

(2)        Determine whether the activities listed in the application are activities that are eligible for a grant.

(3)        Determine which applicants are selected to receive funds from the Main Street Solutions Fund.

A city whose application is denied may file a new or amended application.

(e)        A Main Street City that is selected may not receive a grant pursuant to this section totaling less than twenty thousand dollars ($20,000) or more than three hundred thousand dollars ($300,000).

(f)         Repealed by Session Laws 2009‑451, s. 14.10, effective July 1, 2009.

(g)        (1)        A city that has been selected to receive a grant shall use the full amount of the grant for the activities that were approved pursuant to subsection (d) of this section. Funds are deemed used if the city is legally committed to spend the funds on the approved activities.

(2)        If a city has received approval to use the grant for public improvements or public infrastructure, that city shall be required to raise, before funds for these public improvements may be drawn from the city's account, local public funds to match the amount of the grant from the Main Street Solutions Fund on the basis of at least one local public dollar ($1.00) for every one dollar ($1.00) from the Main Street Solutions Fund. This match requirement applies only to those funds received for public improvements or public infrastructure and is in addition to the requirement set forth in subdivision (1) of this subsection.

(3)        A city that fails to satisfy the condition set forth in subdivision (1) of this subsection shall lose any funds that have not been used within three years of being selected. These unused funds shall be credited to the Main Street Solutions Fund. A city that fails to satisfy the conditions set forth in subdivisions (1) and (2) of this subsection may file a new application.

(4)        Any funds repaid or credited to the Main Street Solutions Fund pursuant to subdivision (3) of this subsection shall be available to other applicants as long as the Main Street Solutions Fund is in effect.

(h)        Repealed by Session Laws 2009‑451, s. 14.10, effective July 1, 2009.

(i)         After a project financed in whole or in part pursuant to this section has been completed, the city shall report the actual cost of the project to the Department of Commerce. If the actual cost of the project exceeds the projected cost upon which the grant was based, the city may submit an application to the Department of Commerce for a grant for the difference. If the actual cost of the project is less than the projected cost, the city shall arrange to pay the difference to the Main Street Solutions Fund according to terms set by the Department.

(j)         Inspection of a project for which a grant has been awarded may be performed by personnel of the Department of Commerce. 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.

(k)        The Department of Commerce may adopt, modify, and repeal rules establishing the procedures to be followed in the administration of this section and regulations interpreting and applying the provisions of this section, as provided in the Administrative Procedure Act.

(l)         The Department of Commerce and cities that have been selected to receive a grant from the Main Street Solutions Fund shall prepare and file on or before September 1 of each year with the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division a consolidated report for the preceding fiscal year concerning the allocation of grants authorized by this section.

The portion of the annual report prepared by the Department of Commerce shall set forth for the preceding fiscal year itemized and total allocations from the Main Street Solutions Fund for grants. The Department of Commerce 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.

The portion of the report prepared by the city shall include each of the following:

(1)        The total amount of private funds that was committed and the amount that was invested in the designated downtown area during the preceding fiscal year.

(2)        The total amount of local public matching funds that was raised, if required by subdivision (g)(2) of this section.

(3)        The total amount of grants received from the Main Street Solutions Fund during the preceding fiscal year.

(4)        Repealed by Session Laws 2009‑451, s. 14.10, effective July 1, 2009.

(5)        A description of how the grant funds and funds from private investors were used during the preceding fiscal year.

(6)        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.

(m)       The Department of Commerce may use up to fifty thousand dollars ($50,000) of the funds in the Main Street Solutions Fund for expenses related to the administration of the Fund.  (1989, c. 751, s. 9(c); c. 754, ss. 40(b)‑(m); 1991, c. 689, s. 140(a); 1991 (Reg. Sess., 1992), c. 959, s. 72; 1993, c. 553, ss. 50, 51; 1997‑456, s. 27; 2009‑451, s. 14.10.)