From: John Simko, Town Manager

CC: Ron Harriman –Ron Harriman Associates
Al Hodsdon, A.E. Hodsdon Consulting Engineers
Mark Scarano – Executive Director, PCEDC
John Holden, EMDC
Scott Hersey – General Manager, Greenville Steam Plant

Date: 8-30-03

Re: Community Development Block Grant (CDBG) Project Review with Maine CDBG Director Orman Whitcomb

Orman Whitcomb, Director of the Maine Department of Economic and Community Development's (DECD's) CDBG Program, was kind enough to come to Greenville Friday, August 29, 2003 to meet with Ron Harriman, Scot Hersey and I to discuss future Greenville CDBG projects. I found Orman's insights very useful as he is the author of the latest set of rules for the CDBG program – below are details about the projects we discussed.

Housing Rehabilitation Program
Ron summarized the 2001 Housing Program for Orman, which has worked quite well. The grant will be completely closed out this coming week. In total, 29 units were assisted and over $115,000 in private and outside agency funds was leveraged for match to the program (only $40,000 is required).

The Town of Greenville's 2002 Housing Assistance application – which included the Town of Shirley – was turned down this year. Orman reports that by the end of the calendar year, there may be additional funds available for this category and that our application may yet be funded. Still, Orman recommends that we and Shirley apply again for funding in this coming round of applications (due this winter). This next year's program will allow for funding of twice as many projects as the first 7-8 will be funded in 2004 and the second 7-8 applications (scored 1-100) will be funded in 2005. Suffice to say, chances are very good that between 2003, 2004 and 2005, Greenville and Shirley will indeed have another Housing Rehabilitation program.

Junction Wharf Reconstruction
The reconstruction of the Junction Wharf – including all new retaining wall system, new pavement, new boat launch, outdoor stage and general landscaping – will cost up to $1 million. I am exploring a variety of funding sources, including the CDBG program. In discussion with Orman, there are only three programs which could apply to this project. The Public Facilities Infrastructure Grant (PFIG) Program has three categories, the second of which includes funding for wharf / pier repair. This category allows for up to $250,000 for wharf reconstruction, but the applying municipality must demonstrate that the project meets one of two “national objectives” of the CDBG program. The first objective is to help communities made up of at least 51% low-to-moderate income (LMI) households. Greenville has only about 43% of households whose income meets the LMI standards. Therefore, we are ineligible for this program. The second objective is to relieve slum-blight conditions, but such a standard only applies (typically) to Downtown Revitalization projects. The Town of Greenville – through special Town Meeting vote – and Moosehead Junction Twp. – through a vote of the Piscataquis County Commissioners – could adopt a slum-blight designation for the Junction area. But this would only allow us to jointly apply for downtown revitalization funds. Considering that the Town of Greenville has previously received downtown revitalization funds, we would be at a great competitive disadvantage to have a successful downtown revitalization application for the Junction. Therefore, Greenville is ineligible to apply for the PFIG through a slum-blight designation, and although we are eligible to apply for Downtown Revitalization funds, we are very unlikely to be funded.

However, there is a new program which would work very well as a funding source for this project. The Municipal Investment Trust Fund (MITF) is a legendary grant program for municipalities which has just now been capitalized after have been established in 1992. First-time-ever applications for funding will be available in October of this year. Applications will be reviewed by Office of Community Development (same division of DECD which reviews CDBG applications). The MITF was established as part of the 1991 Growth Management Act, which required municipalities to establish and to implement comprehensive plans. The fund was intended to help municipalities who do their required planning to fund necessary infrastructure within their designated growth area (e.g., industrial parks). The June referendum question for job growth, along with a previous appropriation, has yielded this fund a little over $10 million for the grant program. The statutory requirements for the program require that grant recipients be (a) service centers, (b) have an adopted and consistent comprehensive plan, and (c) seek funds for projects of regional significance. In addition, the program will give additional consideration to communities which have also (1) implemented their comprehensive plans, and (2) seeks funding for projects in a downtown area. Greenville's Junction Wharf project meets all of these criteria, and therefore has a strong likelihood of being funded. The maximum grant award through the MITF program, as currently designed, is $500,000. I believe this is our best resource for the project.

Wood Composites Incubator
I shared the attached project budget for the wood composites incubator, explaining that the Town will likely apply in October for a $100,000 Economic Development Infrastructure (EDI) grant through the CDBG program. Orman suggested that the Town may want to apply for funds specifically to pay for utility hook-up and site preparation as this would (1) avoid Davis-Bacon wage requirements, and (2) remove all CDBG restrictions from the future use of the building itself. I think we should pursue this option. Orman seems to think the $100,000 request is fundable for the Incubator project, regardless of its specific purpose.

Improvements to the Industrial Park
In discussion with Orman, it seems likely that a separate EDI application could fund not one but two related projects within the Industrial Park. If we want to bring in water and sewer to the Industrial Park, and also a rail siding, we may be eligible for $500,000 as the project(s) will be of regional benefit. The only two requirements will be (a) 20% cash match of local or other non-CDBG funds, and (b) job creation at the rate of 1 job for each $10,000 of grant funds issued. If we assume we could bring water and sewer lines across from South Maple Street to the intersection of the Greenville Steam Plant Road for $300,000 (as estimated by CES, Inc., in 2002), and if we assume it will cost $400,000 for a rail siding brought in from Spruce Street to roughly the scale house for the Steam Plant, then this EDI will sufficiently fund these projects. The Town will apply for an additional $200,000 through the MDOT Industrial Rail Access Program (IRAP), which will more than meet the $100,000 local match requirements. The EDI will therefore pay for 100% of the water and sewer line extension. The only requirement remaining then is the creation of 50 jobs (we're working on this).

Other Projects
While there are no other CDBG projects on the horizon, Greenville is in a very good position to seek and to receive additional MITF funds in the future after the Junction Wharf is reconstructed. Some possible projects (which must be of regional significance) could include the construction of a solid waste transfer station adjacent to the recycling center. Other regional infrastructure projects may be considered as necessary.