Mark Your Calendar for the 2009 Washington Policy Conference: Registration Now Open

Be sure to mark your calendar for NADO’s 2009 Washington Policy Conference, March 2-4, 2009 at the Marriott Crystal Gateway in Arlington, Virginia. This conference will provide a unique opportunity for participants to obtain the latest and most up-to-date policy information on issues impacting their region legislatively. To register, visit www.nado.org/conferences/wpc09.pdf.

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EDA Releases Proposed RLF Regulations

On October 22, the Economic Development Administration (EDA) published Interim Final Rules for its Revolving Loan Fund (RLF) program.

In March 2007, the Department of Commerce’s Office of Inspector General published an evaluation of EDA’s management of the RLF program (see www.oig.doc.gov/oig/reports/2007/EDA-OA-18200-03-2007.pdf). According to the Federal Register notice, the rules are designed to update existing regulations and to “synchronize RLF regulation” with guidance developed by the agency to improve the program's performance and oversight, as outlined in the Inspector General’s report.

The interim rules are effective immediately. Comments may be submitted to EDA’s Office of Chief Counsel no later than December 22, 2008. To access the complete Interim Final Rules, visit www.nado.org/legaffair/rlf.pdf).

Specific changes to existing RLF regulations proposed under the Interim Final Rules include:

Section 301.4 – Investment Rates: The rule modifies the investment rates to indicate that a project located in a region demonstrating a 24-month unemployment rate at least over a percentage point over the national average is eligible to receive a maximum allowable investment rate of 50 percent.

Section 301.10 – Application Requirements: Clarifies that EDA is not required to provide an appeals process to applicants whose applications for assistance are denied.

Section 307.8 – Definitions: Eliminates the term “Guaranteed Loan” and no longer allows RLF recipients to use RLF capital to guarantee loans. The regulations indicate that “while this authority has been used extremely frequently throughout the four-decade history of the RLF program, EDA has determined that loan guarantees are too risky and of limited utility.”

In addition, the term “Reporting Period” is modified to indicate that there are new semi-annual reporting periods for RLF recipients. This is to be consistent with EDA’s new Form ED-209 that must now be submitted by all RLF recipients and will cover a six-month reporting period.

Section 307.9 – Revolving Loan Fund Plan: All RLF recipients shall manage RLFs in accordance with an RLF plan, which must be submitted in an electronic format, unless EDA approves a paper submission. The plan must summarize and be consistent with the CEDS or EDA-approved economic development plan for a region. The RLF recipient must submit an updated plan every five years.

Section 307.14 – Revolving Loan Fund Semi-Annual and Annual Reports: As mentioned above, EDA has completely revised its regulations governing the reporting requirements of RLF grantees. All RLF recipients, “including those receiving recapitalization grants for existing RLFs,” are required to submit to EDA a semi-annual report in electronic format “unless EDA approves a paper submission.” RLFs that use either 50 percent or more (or more than $100,000) of RLF income for administrative costs in a six-month reporting period are required to comply with additional reporting requirements.

Section 307.15 – Prudent Management of Revolving Loan Funds: The regulations amend several requirements regarding loan documentation, including the submission of the board of directors’ meeting minutes and a signed bank turn-down demonstrating that credit is not available.

The regulations establish a “dual interest rate floor” where the interest charged by an RLF operator cannot be less than the lower of “four (4) percent or 75 percent of the prime interest rate listed in the Wall Street Journal.”

In addition, “EDA may institute a new requirement, whereby all RLF recipients will have to undergo a mandatory certification program to enhance their ability to administer RLF grants in a prudent manner.” If required to complete a certification program, the RLF operator “may consider the cost of attending the certification courses as an administrative cost.”

Section 307.16 – Effective Utilization of Revolving Loan Funds: EDA will “take steps necessary” to document and assess an RLF recipient’s loan default rate and may request information from the RLF to determine whether it is collecting loan repayments and complying with the financial obligations under the RLF grant. This includes a written analysis of the RLF recipient’s portfolio, a corrective action plan subject to EDA’s approval, and a quarterly status report indicating the RLF’s programs on achieve benchmarks outlined in the corrective action plan.

In addition, if the RLF recipient fails to satisfy the capital utilization period for two consecutive reporting periods, EDA may require the RLF to deposit excess funds in an interest-bearing account. Interest earned in the account will be remitted to the U.S. Treasury.

Section 307.17 – Uses of Capital: Regulations now require an independent third party to conduct a compliance and loan quality review for the RLF grant every three years. The review may be considered as an administrative cost.

Section 307.21 – Termination of Revolving Loan Funds: Adds additional grounds for termination or suspension of an RLF grant, which now include failure to: submit an updated plan; submit timely progress, financial and audit reports in the required format; manage to RLF grant in accordance with Prudent Lending Practices; sequester excess funds or remit the interest on EDA’s portion of the sequestered funds to the U.S. Treasury; submit the documentation requested by EDA for loan defaults and collection efforts; comply with audit requirements; and comply with an EDA corrective action plan.

To view NADO’s complete side-by-side analysis comparing the existing regulations, released in 2006, with the interim final rules, visit www.nado.org/legaffair/rlf08.pdf. RLF operators are asked to provide feedback and comments on the interim final rule. For more information or to submit feedback, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.
 

 
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Obama says Economic Stimulus will be First Priority

On November 7, during his first official press conference, President-Elect Obama stated that if Congress was unable to pass stimulus legislation in the upcoming lame-duck session, “it will be the first thing I get done as President of the United States.” The House and Senate are expected to return the week of November 17 to begin consideration of a revised stimulus package.

During the campaign, Obama proposed an extension of unemployment benefits ($10 billion), aid to states ($25 billion), funding for infrastructure projects ($25 billion), tax rebates for low-income workers ($65 billion), $3,000 tax credit to companies that hire full-time employees ($40 billion), relief for homeowners and aid to the auto industry.

Congressional Democrats have indicated their desire to pass stimulus legislation that contains significant resources for infrastructure improvements, but have faced a veto threat from the Bush administration. However, some reports have seemed to indicate that President Bush would sign economic stimulus legislation in exchange for passage of the Colombia Free Trade Agreement, which has been a top priority of the administration.

In September, the House of Representatives passed a $61 billion stimulus package (HR 7110). Democratic leaders are now discussing plans to increase that package to $100 billion and develop another $200 billion package during the 111th Congress.

Senate Republicans blocked consideration of a $56.2 billion bill (S 3604), which was similar to the House package, in September. The Senate measure contained an additional $50 million in funding for the Economic Development Administration (EDA).

NADO members are asked to continue contacting members of their Congressional delegations to request additional funding for EDA in the stimulus package being developed. For more information, visit the NADO action alert at www.nado.org/uploaded_files/edastim2.pdf.

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Byrd Relinquishes Appropriations Chairmanship

On November 7, Sen. Robert Byrd (D-WV) announced that he would step down as Chairman of the Senate Appropriations Committee in the 111th Congress.

Senate Democrats will meet the week of November 17 to officially designate committee leaders for the 111th Congress. However, current Defense Appropriations Committee Chairman Daniel Inouye (D-HI) is expected to assume the chairmanship when the new Congress begins next year.

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House Transportation Leaders Warn Against Public-Private Partnerships

On November 4, House Transportation and Committee Chairman Jim Oberstar (D-MN) and Highways and Transit Subcommittee Chairman Peter DeFazio (D-OR) delivered a joint-letter to Transportation Secretary Mary Peters voicing concern about public-private partnerships and their use in funding transportation projects in the wake of the current credit crunch.

The letter states that “the recent crisis in the financial markets makes clear that these deals should be undertaken under very specific circumstances and with strong guidelines to ensure that priority in these arrangements is on generating public value, not private profit.” The letter adds that they “have serious concerns that without appropriate and effective oversight of these deals by your department, the public interest could be seriously compromised in the current financial environment.”

To view the letter, visit http://transportation.house.gov/Media/File/press/11-04-08%20JLO-PAD%20Ltr%20PPP.pdf.

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Federal News and Notes

DHS Opens FY 2009 Grant Cycle

On November 5, the Department of Homeland Security (DHS) released its FY 2009 application guidance for 14 grant programs.

The program allocations for FY 2009 include:

• State Homeland Security Grant Program (SHSGP) - $861.3 million
• Urban Areas Security Initiative (UASI) - $798.6 million. The seven highest risk urban areas will compete for approximately $439 million and the remaining areas will compete for about $359 million (the 9/11 Act requires grantees to dedicate at least 25 percent from both SHSP and UASI funds for law enforcement terrorism prevention activities).
• Metropolitan Medical Response System Program (MMRS) - $39.8 million
• Citizen Corps Program (CCP) - $14.6 million

Additional FY 2009 grant funding includes: 

• Operation Stonegarden (OPSG) - $60 million
• Port Security Grant Program (PSGP) - $388.6 million
• Buffer Zone Protection Program (BZPP) - $48.6 million
• Emergency Management Performance Grants (EMPG) - $306 million
• Interoperable Emergency Communications Grant Program (IECGP) - $48.6 million for planning, training, exercises and equipment to states and local governments to carry out initiatives identified in Statewide Communication Interoperability Plans and improve interoperable emergency communications for responding to natural disasters and acts of terrorism.
• Regional Catastrophic Preparedness Grant Program (RCPGP) - $34 million to enhance catastrophic incident preparedness in selected high-risk, high-consequence urban areas and to support technical assistance funding in FY 2009. 

Applications are due March 20, 2009. Additional application guidance and eligibility criteria are available online at www.dhs.gov.

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NADO News and Notes

NADO Member in South Carolina Achieves Success with Statewide Brownfields Initiative

Two years ago, the Catawba Regional Council of Governments (COG) accepted the task of managing the Brownfields Cleanup Revolving Loan Fund (RLF) on behalf of the South Carolina Department of Health and Environmental Control. Since then, the COG has successfully loaned $1.5 million to local governments to finance brownfields cleanup projects around the state and has committed $770,000 more. 

Building on its experience in brownfields remediation and commercial real estate lending, the Catawba Regional COG markets the program and underwrites and services loans originated through the fund.  Discussing the benefits of the program, Catawba Executive Directive Harold Shapiro said, “For governmental and non-profit borrowers, 30 percent of a loan – to a maximum of $200,000 – may be forgiven over the repayment period of a loan.”

The Brownfield RLF is just one of many financial assistance tools offered by the U.S. Environmental Protection Agency (EPA) to encourage redevelopment of contaminated land across the country. To learn more about the EPA Brownfields and Land Revitalization program visit: http://epa.gov/brownfields/index.html.

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Iowa Comes Together for NADO Brownfields Workshop

NADO President Sharon Juon delivered opening remarks during the NADO Research Foundation’s "Brownfields Revitalization in Iowa" meeting on November 6 in Des Moines. Covering an array of topics including the basics of brownfields, state and federal funding resources and how to mitigate risk and liability, the workshop provided community stakeholders with the knowledge necessary for tackling contaminated property redevelopment. In addition to hearing from featured panelists, workshop attendees toured the future Des Moines headquarters of WellMark Blue Cross Blue Shield, a multi-acre former brownfields site that is expected to bring over one hundred new jobs to the area.

Partners for the event included the Iowa Association of Regional Councils, Iowa Department of Natural Resources, Iowa Department of Economic Development, the Howard R. Green Company, Terracon Consultants, Inc. and EPA Region 7.  

For a copy of workshop materials visit: www.nado.org/rf/innocenters/envarchive.php.  For more information on NADO Research Foundation’s Rural Brownfields Awareness program contact program manager Mike Bellamente at 202.624.7809 mbellamente@nado.org.  

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RPO America Represented at Alabama Statewide Meeting

On October 21, John Marshall, Transportation Manager of the Western Piedmont Council of Governments in Hickory, North Carolina and Chair of NADO’s National RPO Council of Peers, addressed the Alabama Association of Regional Councils (AARC).  AARC held its Annual Training Conference in Mobile, and focused on the theme “Regional Solutions for the 21st Century.”

During a special session on rural transportation planning organizations (RPOs), Marshall provided information on national trends in the use of rural transportation planning organizations (RPOs), drawing particularly from his own experience managing the Unifour RPO in North Carolina.

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NADO Staff Participates in Mid-Atlantic Regional Roundtable

NADO Program Manager Carrie Kissel attended the fifth Mid-Atlantic Regional Planning Roundtable in Philadelphia on Friday, November 10.  Since 2005, these Mid-Atlantic roundtables have provided an opportunity for exchange on planning and development issues for regional development organizations throughout the multi-state area.

Topics for discussion included land use and transportation, inter-regional planning, watershed planning to ensure multi-state water quality and water supply, and regional responses to air quality and climate change.

View the speakers’ presentations and learn more about the roundtables’ history at http://semanticommunity.wik.is/Mid-Atlantic_Regional_Planning_Roundtables.
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NADO Staff Attends Economic Development Summit in South Carolina

NADO Communications Manager Zanetta Doyle attended the Orangeburg County Development Commission’s 2008 Economic Development Summit on November 12, 2008 in Orangeburg, South Carolina. More than 500 attendees learned details about the Dubai-based company Jafza International’s plan to build a 1,300 acre logistics, manufacturing and distribution park in Santee, South Carolina. The company has committed to investing $600-$700 million in the county.  Upon completion, the project could result in 6,000 jobs.

The theme of the summit, was “Going Global, Acting Local, Coming to the Table – A Vision for 2020.” Attendees heard from numerous industry experts who addressed topics that examined the global, national and local aspect of Jafza’s presence in South Carolina. General session topics included: Strategies for Success in a Flat World, Understanding the Economic Climate, and Growing in the Right Direction: Building Communities and Changing Perceptions. Breakout sessions addressed more specific topic areas including: The Condition of healthcare, Capital Project Sales Tax Initiative, and Workforce of the Future.

Rep. James Clyburn (D-SC) served as keynote speaker for the summit luncheon, where “The Master Plan” for the Jafza project was unveiled. The Plan outlined the company’s 20-year strategy for Santee. NADO served as one of the sponsors for this event. 

For more information on the Jafza project, visit www.ocdc.com/entrance.html.

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$70 billion in Transportation-Related Ballot Initiatives Approved

On November 4, voters in 37 states approved more than $70 billion in transportation-related spending, according to the American Road and Transportation Builders Association (ARTBA).

ARTBA tracked 37 state and local transportation funding-related ballot initiatives in 17 states.  Of the 37 measures, 32—or 86 percent—asked voters to initiate, extend or increase taxes, or approve bonds to fund transportation improvements.  Twenty-five—78 percent of the bond and tax measures—were approved with an average vote of 63 percent.

For ARBTA’s complete report, visit www.artba.org/news/press_releases/2008/11-06b-08.html.

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NADO Calendar of Events
Teaser here

2009 Washington Policy Conference, March 2 - 4, 2009
Marriott Crystal Gateway, Arlington, VA

Economic Development Finance Service Conference, March 24 - 27, 2009
Chateau Bourbon Hotel, New Orleans, LA

2009 NADO Board of Directors Meeting, June 13 - 15 2009
Osthoff Resort, Elkhart Lake, WI

2009 Annual Training Conference, August 29 - September 1, 2009
Sheraton Chicago Hotel & Towers, Chicago, IL

2009 National Rural Transportation Peer Learning Conference, October 28 - 29, 2009
Marriott Savannah Riverfront, Savannah, GA 

2010 NADO Board of Directors Meeting, June 5 – 7, 2010
Hilton Branson Convention Center Hotel, Branson, MO

2010 NADO Annual Training Conference, August 28 - 31, 2010
Sheraton San Diego Hotel and Marina, San Diego, CA

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