1
INTRODUCTIONS:William Harbeson -- RACP Administrator, 3years of RACP experience and 32 years of publicadministrationHoll...
TODAY WE WILL EXPLAIN: What is RACP The RACP Selection Process Selection Criteria/Scoring Matrix Review Process Statu...
TODAY WE WILL EXPLAIN:(continued) RACP Grant Process Application Procedures Reimbursement Procedures Mandated Close-Ou...
What is the RedevelopmentAssistanceCapital Program (RACP)?RACP is a commonwealth grant programadministered by the Office o...
WHAT IS RACP?(continued) RACP projects should: Attract and retain jobs in Pennsylvania bytargeting large, economically t...
WHAT IS RACP?(continued) To be eligible for a RACP grant, the project: Must be authorized in a Capital Budget ProjectIte...
WHAT IS RACP?(continued) To be eligible for a RACP grant, the project: Must not have their main focus be related tofundi...
RACP SELECTION PROCESS Once the project meets the minimum eligibilityrequirements the candidate must then submit aBusines...
RACP SELECTION PROCESS –SELECTION CRITERIA Projects that meet minimum eligibilityrequirements will be scored based upon t...
RACP SELECTION PROCESS –REVIEW PROCESS Project selections will be made through atransparent process that benefits all int...
RACP SELECTION PROCESS –REVIEW PROCESS (Continued) Selection committee members may include theagencies listed below along...
RACP SELECTION PROCESS –STATUS RESULTS A list of all candidates per funding round will beposted to the OB web site. All ...
RACP SELECTION PROCESS –FUNDING ROUNDS Semi-Annual Funding Rounds will be held forthe program: Funding is to be approxim...
BUSINESS PLAN SUBMISSIONPROCESS The Business Plan consists of 12 Tabs A Business Plan template, in Microsoft Wordformat,...
BP Tab 1 - Project EligibilityRequirements The project must be authorized in a Capital BudgetProject Itemization Act. Th...
BP Tab 1 - Project EligibilityRequirements (continued) Provide the authorization information in thetable provided for Tab...
BP Tab 2 - Project Description The Candidate should provide, in as much detailas possible, a project description narrativ...
BP Tab 3 - Economic Impact The Candidate must complete an EconomicImpact table as shown in the Business PlanHandbook. Thi...
BP Tab 4 - Community Impact The Candidate should provide a narrative on thecommunity impact of the project for allapplica...
BP Tab 5 - Strategic Clusters forDevelopment Candidates should provide a narrative if theproject is among any of the stra...
BP Tab 5 - Strategic Clusters forDevelopment (continued) The Governor’s plan is to pursue a jobs-focusedapproach that tar...
BP Tab 6 - Organizational, Management& Strategic Business Plan An organizational, management & strategic planmust be comp...
BP Tab 6 - Organizational, Management& Strategic Business Plan (continued) A strategic plan should becompleted for the pr...
BP Tab 7 - Statement of Compliance The Candidate should provide a signed list ofcompliance requirements on letterhead.25
BP Tab 7 - Statement of Compliance (cont.) The list of compliance requirements shouldinclude, but not be limited to, the ...
BP Tab 8 - Project Schedule The Candidate must complete the ProjectSchedule information &, if available, submit adetailed...
BP Tab 9 - Cash Flow Schedule The Candidate should develop a projected cashflow schedule for the project. See the example...
BP Tab 9 - Cash Flow Schedule (continued) Things to keep in mind when doing the cashflow schedule: Bridge Financing/Inte...
BP Tab 10 - RDA-300 Form (Sources ofFunds) Form RDA-300 (Sources of Funds) must becompleted for the project. The form mu...
BP Tab 11 - RDA-301 Form (Uses ofFunds) & Site Control Form RDA-301 (Uses of Funds) must be completed forthe project. No...
BP Tab 12 - Business Plan ScoringSummary The Business Plan Summary is a spreadsheetthat summarizes tabs 1 through 11. Al...
BUSINESS PLAN – SYNOPSIS There is a Business Plan checklist provided foryour convenience. DO NOT submit it with yourBusin...
BUSINESS PLAN – REVIEW OB staff will perform the following tasks: Conduct an initial review to see if ALL information is...
BUSINESS PLAN – STATUSRESULTS Results will be posted to the RACP web siteafter the Selection Committee and Governorhave m...
BUSINESS PLAN – STATUSRESULTS (Continued) Project disqualified by OB due to deficiencies Submit another Business Plan co...
RACP GRANT PROCESS –APPLICATION Once an Award Letter has been received, anapplication must be submitted to OB within six(...
RACP GRANT PROCESS –APPLICATION (continued) The Grant Agreement will be emailed to theGrantee for signature. Once signed...
RACP GRANT PROCESS –APPLICATION (continued) During this time, the project should be workingon satisfying the Special Cond...
RACP GRANT PROCESS –REIMBURSEMENT Submit documentation to satisfy specialconditions to OB Submit payment request to OB ...
RACP GRANT PROCESS –MANDATED CLOSE-OUTAUDIT Once the final payment request has beensubmitted: Retainage is held on final...
RACP SUMMARYKey for next section of slidesStateCandidate / GranteeState ConsultantState & Candidate/GranteeKEY42
RACP SUMMARYLegislative ProcessProject line item (itemization) inCapital Project Itemization Bill byState Legislature, des...
RACP SUMMARYBusiness Plan ProcessOBacceptsprojectproposalsfor a semi-annualfundinground.Candidate submits aBusiness Plan(R...
RACP SUMMARYBusiness Plan Process (continued)OB scores theBusiness Plan inaccordance withpublished criteriaand forwards ac...
RACP SUMMARYApplication ProcessRACP Introcontact/meetingwith State &Candidate /GranteePrepareapplicationmaterialsApplicati...
RACP SUMMARYApplication Process (continued)Commencement of constructionmonitoring process (periodic projectstatus meetings...
RACP GRANT SUMMARYReimbursement & Audit ProcessSatisfaction of SpecialConditions viaapproval letter fromState―Facilitation...
QUESTIONS49
CLOSING Thank you for coming today If you have any additional questions after youstart to put your Business Plan togethe...
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2013 AICUP Spring Institute - Redevelopment Capital Assistance Program (RACP)

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2013 AICUP Spring Institute - Redevelopment Capital Assistance Program (RACP)

  1. 1. 1
  2. 2. INTRODUCTIONS:William Harbeson -- RACP Administrator, 3years of RACP experience and 32 years of publicadministrationHolli Reidlinger -- RACP Administrator, 7 yearsof RACP experience2
  3. 3. TODAY WE WILL EXPLAIN: What is RACP The RACP Selection Process Selection Criteria/Scoring Matrix Review Process Status Results Funding Rounds Business Plan Submission3
  4. 4. TODAY WE WILL EXPLAIN:(continued) RACP Grant Process Application Procedures Reimbursement Procedures Mandated Close-Out Audit Procedures RACP Summary Questions Closing4
  5. 5. What is the RedevelopmentAssistanceCapital Program (RACP)?RACP is a commonwealth grant programadministered by the Office of the Budget for theacquisition and construction of regionaleconomic, cultural, civic, and historicalimprovement projects.5
  6. 6. WHAT IS RACP?(continued) RACP projects should: Attract and retain jobs in Pennsylvania bytargeting large, economically transformativeprojects for development Have the greatest financial impact onPennsylvania’s economy Maximize generation of new tax revenue Demonstrate long-term sustainability6
  7. 7. WHAT IS RACP?(continued) To be eligible for a RACP grant, the project: Must be authorized in a Capital Budget ProjectItemization Act Should be ―shovel ready‖ i.e. ready to beginconstruction in 365 days or fewer Projects that take longer than 1 year to beginconstruction will be deferred to a laterfunding round. Must not be completed7
  8. 8. WHAT IS RACP?(continued) To be eligible for a RACP grant, the project: Must not have their main focus be related tofunding through other state programs such asPENNDOT or PENNVEST Must be at least $1M Must have minimum 50% MATCH of eligibleNON-RACP funds8
  9. 9. RACP SELECTION PROCESS Once the project meets the minimum eligibilityrequirements the candidate must then submit aBusiness Plan to the Office of the Budget (OB). The candidate should refer to the Funding RoundSchedules and choose the round that will be closestto the anticipated start date of the projectconstruction. The candidate will need to submit their BusinessPlan before the deadline of that round.9
  10. 10. RACP SELECTION PROCESS –SELECTION CRITERIA Projects that meet minimum eligibilityrequirements will be scored based upon thefollowing published RACP Scoring Criteria: JOBS (created or retained)—40% COMMUNITY IMPACT—20% STRATEGIC CLUSTERS—5% FINANCIAL IMPACT—25% CONSTRUCTION READINESS—10%10
  11. 11. RACP SELECTION PROCESS –REVIEW PROCESS Project selections will be made through atransparent process that benefits all interestedparties: All project selection criteria, guidelines and thescoring matrix is posted to the Office of the Budget(OB) website. A multi-agency selection committee will beestablished to determine which projects will receivefunding after review of OB staff analysis completedpursuant to published program guidelines. The Governor has final say on all projects.11
  12. 12. RACP SELECTION PROCESS –REVIEW PROCESS (Continued) Selection committee members may include theagencies listed below along with the Secretary ofthe Budget as Chairman: DCED/GAT Revenue Banking Policy Legislative Affairs Labor and Industry12
  13. 13. RACP SELECTION PROCESS –STATUS RESULTS A list of all candidates per funding round will beposted to the OB web site. All selected projects per funding round will beposted to the OB web site.13
  14. 14. RACP SELECTION PROCESS –FUNDING ROUNDS Semi-Annual Funding Rounds will be held forthe program: Funding is to be approximately $125 million eachyear (i.e., roughly $62.5M per funding round, butcan be adjusted based upon need). Funding awards will generally be made each Apriland October, although these dates are tentative andare subject to change.14
  15. 15. BUSINESS PLAN SUBMISSIONPROCESS The Business Plan consists of 12 Tabs A Business Plan template, in Microsoft Wordformat, is available from the RACP web site. All tabs MUST be submitted for the Business Planto be deemed complete and ready for scoring. Each tab must be addressed separately. More detailed information on each tab is availableon our web site.15
  16. 16. BP Tab 1 - Project EligibilityRequirements The project must be authorized in a Capital BudgetProject Itemization Act. These Acts enumerate projects that are authorized topotentially receive RACP funding (1984 – 2010). Currently there are some 20 Acts with 6,000+ itemizationswith unused authorization dollars. Be careful! RACP is only 1 of several programs withitemizations listed in these Acts. If an entity has a project that they believe is worthy of RACPfunding they can work with their legislator to have theirproject itemized in a future Capital Budget Itemization Act. Some itemizations are ―tailored‖ to a specific project, othersare very general.16
  17. 17. BP Tab 1 - Project EligibilityRequirements (continued) Provide the authorization information in thetable provided for Tab 1 either in the Wordtemplate or BP Handbook on our web site. A list of available itemizations can be found on our web sitevia the link entitled ―Project Authorizations.‖ If you don’t have an existing itemization that was ―made‖ foryour project, you must find one that ―fits.‖ Itemizations are available on a ―first come, first serve‖ basis. Three most important factors for an itemization to ―fit‖:1) location, 2) description, and 3) remaining amount. Multiple authorizations ―that all fit‖ can be used.17
  18. 18. BP Tab 2 - Project Description The Candidate should provide, in as much detailas possible, a project description narrative in an―Overall‖ and ―Proposed RACP Scope‖ format. And the following information: Project Name Address of Project Site Municipality County Name, Address, & District # for: State Representative State Senator18
  19. 19. BP Tab 3 - Economic Impact The Candidate must complete an EconomicImpact table as shown in the Business PlanHandbook. This table includes information on: Number of new and retained jobs created byproject: Full-Time & Part-Time Indirect Temporary Construction Jobs Wage details Tax generation information An Excel template for the Tab 3 is available as the2nd worksheet in the Tab 12 Excel file available onour web site.19
  20. 20. BP Tab 4 - Community Impact The Candidate should provide a narrative on thecommunity impact of the project for allapplicable areas described in the Business Planand supply both the source of data and anyapplicable supporting documentation.20
  21. 21. BP Tab 5 - Strategic Clusters forDevelopment Candidates should provide a narrative if theproject is among any of the strategic clusterslisted on the next slide. It is imperative that the Candidate’s narrative beas thorough and complete as possible. The Candidate is permitted to include whateversupporting documentation is necessary tosupport its justification.21
  22. 22. BP Tab 5 - Strategic Clusters forDevelopment (continued) The Governor’s plan is to pursue a jobs-focusedapproach that targets key growth sectors in thefollowing areas: Biotechnology/Pharmaceutical/Life Sciences High Tech & Advanced Manufacturing andMaterials Energy Extraction & Mining Business & Financial Services Healthcare/Medical Research and/or Educational Agriculture22
  23. 23. BP Tab 6 - Organizational, Management& Strategic Business Plan An organizational, management & strategic planmust be completed. The individuals responsible to accomplish theactivities should be identified. Provide a narrative explaining the organizationalstructure and the plan to execute the project. Includeat a minimum the following: Tax Status & Organizational Structure Financial & Operating Status Project Administration Financial Necessity for theRACP award23
  24. 24. BP Tab 6 - Organizational, Management& Strategic Business Plan (continued) A strategic plan should becompleted for the project toinclude: Business strategy/plan Financial informationincluding three (3) mostrecent years of auditedfinancial statements of theorganization Plan for continuing operationof the project24
  25. 25. BP Tab 7 - Statement of Compliance The Candidate should provide a signed list ofcompliance requirements on letterhead.25
  26. 26. BP Tab 7 - Statement of Compliance (cont.) The list of compliance requirements shouldinclude, but not be limited to, the following: Bidding Requirement Steel Products Procurement Act Trade Practices Act Public Works Contractors Bond Law (PerformanceBond & Payment Bond) Pennsylvania Prevailing Wage Act Americans with Disabilities Act Fidelity Bonds Insurance Article 826
  27. 27. BP Tab 8 - Project Schedule The Candidate must complete the ProjectSchedule information &, if available, submit adetailed project schedule. See the example inthe Business Plan. Information will include startand end dates for: Design Bidding Contract Award Permits Construction27
  28. 28. BP Tab 9 - Cash Flow Schedule The Candidate should develop a projected cashflow schedule for the project. See the example inthe Business Plan. The schedule should show all sources and usesof funds and should be based on the following: An estimate of expenditures (uses) with respect totime An estimate of sources with respect to time An estimate of the flow of reimbursements from theRACP grant An estimate of the flow of matching sources of funds28
  29. 29. BP Tab 9 - Cash Flow Schedule (continued) Things to keep in mind when doing the cashflow schedule: Bridge Financing/Interim Financing The Candidate may need to obtain bridge financingduring the construction of the project. The receipt of reimbursed funds can be an extremelylengthy process. The Candidate should plan accordinglywhen securing interim financing. Secured & Unsecured Funding The Candidate should show the breakdown of securedand unsecured funding. The Candidate should accountfor the unsecured funding and determine if bridgefinancing is needed.29
  30. 30. BP Tab 10 - RDA-300 Form (Sources ofFunds) Form RDA-300 (Sources of Funds) must becompleted for the project. The form must be signed and dated. If theGrantee is unknown at this time, the Candidatemay sign. Use the (Excel) form supplied on the web site. If presenting both an overall and narrowerRACP scope, provide an RDA-300 for each. If available, submit verification of funds at thistime. 30
  31. 31. BP Tab 11 - RDA-301 Form (Uses ofFunds) & Site Control Form RDA-301 (Uses of Funds) must be completed forthe project. No project expense can be paid for prior to the project’sItemization Capital Budget Act’s effective date; alsoknown as the Legislative Authorization Date (LAD). excluding LAND used as MATCH ONLY Form must be signed and dated. If the Grantee isunknown at this time, the Candidate may sign. If presenting both an overall and narrower RACPscope, provide an RDA-301 for each. Use the (Excel) form that is supplied on the web site. 31
  32. 32. BP Tab 12 - Business Plan ScoringSummary The Business Plan Summary is a spreadsheetthat summarizes tabs 1 through 11. All items must be filled out or it will result in aZERO score during the review process. The Tab 12 Excel file as downloaded from theRACP website must be completed, saved, andsubmitted to OB. Do NOT copy & paste the RACP provided TAB 12Excel sheet into some new creation of your own.Substitutes or modified copies are not acceptable.32
  33. 33. BUSINESS PLAN – SYNOPSIS There is a Business Plan checklist provided foryour convenience. DO NOT submit it with yourBusiness Plan. When the Business Plan is complete, mail entirepacket (1 hard copy and 2 CDs or flash drivescontaining electronic submissions) to:c/o Business PlanRedevelopment Assistance Capital ProgramOffice of the Budget6th Floor, Verizon Tower303 Walnut StreetHarrisburg, PA 17101-182533
  34. 34. BUSINESS PLAN – REVIEW OB staff will perform the following tasks: Conduct an initial review to see if ALL information issubmitted and if project is eligible. If a Business Plan is not complete or the project isineligible, the project evaluation will NOT proceed to thenext step. Perform a detailed review of the project based uponthe published scoring criteria. Submit a list of projects, their correspondingscores, and summary sheets to the SelectionCommittee. The Selection Committee, with final approval of theGovernor, will determine which projects will beawarded RACP Funds for each funding round. 34
  35. 35. BUSINESS PLAN – STATUSRESULTS Results will be posted to the RACP web siteafter the Selection Committee and Governorhave made their determinations Every Candidate will receive one of three statusletters after the review process is complete: Award Next step is to follow the traditional RACP applicationprocess. Not selected by Selection Committee/Governor Submit an update letter/packet within 30 days if you wantto be considered during the next round.35
  36. 36. BUSINESS PLAN – STATUSRESULTS (Continued) Project disqualified by OB due to deficiencies Submit another Business Plan correcting the deficienciesor continue the project without RACP funds36
  37. 37. RACP GRANT PROCESS –APPLICATION Once an Award Letter has been received, anapplication must be submitted to OB within six(6) months. Follow the RACP Application Handbook (whichis on the RACP web site) exactly. A state assigned consultant will contact eachproject to go over the submitted Application. The consultant will issue a report to OB A Grant Agreement with corresponding specialconditions will be written.37
  38. 38. RACP GRANT PROCESS –APPLICATION (continued) The Grant Agreement will be emailed to theGrantee for signature. Once signed, the Grant Agreement must be sentback to OB to circulate for remaining stateagency signatures to be executed.38
  39. 39. RACP GRANT PROCESS –APPLICATION (continued) During this time, the project should be workingon satisfying the Special Conditions listed inthe Grant Agreement. When construction is about to begin or hasalready begun, contact OB for a facilitationmeeting. This meeting will go over items specific to theproject and provide directions on how to compilethe payment request. Holli Reidlinger at 717-214-5815 orhreidlinge@pa.gov39
  40. 40. RACP GRANT PROCESS –REIMBURSEMENT Submit documentation to satisfy specialconditions to OB Submit payment request to OB Payment will be made to the Grantee when allspecial conditions have been satisfied and thepayment request has been reviewed for requireddocumentation and compliance.40
  41. 41. RACP GRANT PROCESS –MANDATED CLOSE-OUTAUDIT Once the final payment request has beensubmitted: Retainage is held on final payment request. Project is placed on a ―To Be Audited‖ list. An auditor from the commonwealth willcontact each project to conduct the audit. Once the audit is complete and the audit reportis issued, the auditor will recommend therelease of final retainage.41
  42. 42. RACP SUMMARYKey for next section of slidesStateCandidate / GranteeState ConsultantState & Candidate/GranteeKEY42
  43. 43. RACP SUMMARYLegislative ProcessProject line item (itemization) inCapital Project Itemization Bill byState Legislature, designating typeand locale of project and its fundinglevelCapital ProjectItemization BillenactedNOTE: Only itemizations with remaining, unusedapproved amounts are available for fundingState Candidate/GranteeStateConsultantState &Candidate/GranteeKEY43
  44. 44. RACP SUMMARYBusiness Plan ProcessOBacceptsprojectproposalsfor a semi-annualfundinground.Candidate submits aBusiness Plan(RACP grantrequest) to OB bythe publisheddeadline.OBeducationalseminarCandidate verifiesits project’seligibility, reviews all RACPrequirements, anddetermines that asuitableitemization (siteand project type)exists thatincludes thenecessaryavailable funds.State Candidate/GranteeStateConsultantState &Candidate/GranteeKEY44
  45. 45. RACP SUMMARYBusiness Plan Process (continued)OB scores theBusiness Plan inaccordance withpublished criteriaand forwards acomplete listingof projects to theSelectionCommittee.RACPSelectionCommitteereviews andselects projectsfor awards,subject toapproval ofGovernor.Final resultsare posted toRACP’s website anddispositionletters aresent to allprojects.State Candidate/GranteeStateConsultantState &Candidate/GranteeKEY45
  46. 46. RACP SUMMARYApplication ProcessRACP Introcontact/meetingwith State &Candidate /GranteePrepareapplicationmaterialsApplicationsubmission to State(within 6 monthsfrom award letterdate)ApplicationReview withStateConsultant& Candidate/ GranteeSTATEREVIEWSSTATEREVIEWSState Candidate/GranteeStateConsultantState &Candidate/GranteeKEY46
  47. 47. RACP SUMMARYApplication Process (continued)Commencement of constructionmonitoring process (periodic projectstatus meetings: site visits, review ofspecial conditions and Grantcompliance items)Final Executionof GrantAgreementSubmission ofSpecial Conditionmaterials & firstpayment request (ifapplicable) to StateSTATEPROCESSINGPreliminaryGrantAgreement(GA) releasedto Grantee.State Candidate/GranteeStateConsultantState &Candidate/GranteeKEY47
  48. 48. RACP GRANT SUMMARYReimbursement & Audit ProcessSatisfaction of SpecialConditions viaapproval letter fromState―Facilitationmeeting,‖ at therequest of theproject, to review thereimbursement(payment) process1st payment requestsubmittedCommonwealthmakes paymentSubmitsubsequentpaymentrequest(s)Finaldisbursementless retainageFinalauditRelease ofretainageto GranteeState Candidate/GranteeStateConsultantState &Candidate/GranteeKEY48
  49. 49. QUESTIONS49
  50. 50. CLOSING Thank you for coming today If you have any additional questions after youstart to put your Business Plan together, pleasesend them to the following email address:RA-OB-RACP-PPR@pa.gov© amep 201250

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