California Community Economic Revitalization Team
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California Community Economic Revitalization Team |
Rural Economic Development Infrastructure Program (REDIP) |
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Agency : CA Trade and Commerce AgencyProgram : Rural Economic Development Infrastructure Program (REDIP)Program Description : The purpose of REDIP is to provide financing for the construction, improvement or expansion of public infrastructure with the intent of creating jobs in rural cities and counties with an unemployment rate either equal to or above the State’s average unemployment rate. The funds can be used for publicly owned infrastructure required for the construction or operation of a private development. In most cases that means that the construction or use permit for the private development contain a requirement that the project be completed. Eligible infrastructure projects include the construction, rehabilitation, alteration, expansion, or improvement, including but not limited to: Sewer and water facilities (including expansion of central plant capacity); Street storm drains, bridges, railroad spurs, utility connections; Wastewater treatment plants and collection lines; Water treatment plants and distribution lines; Roads, street, highways, and related improvements (e.g. curbs, gutters, sidewalks); Other public facilities or other infrastructure improvements necessary for industrial or commercial activity.Private development is acceptable when a private company requires the infrastructure in order to undertake a project that will retain or create employment. The development can be a new facility or remodeling of an existing one. Housing is not an eligible private development. Except for public owned development sites, the company providing the private development must provide a binding commitment letter as part of the application. In some cases, an industrial park, incubator or other area providing a unique development space may be eligible. Eligible Communities: (1) The following counties and cities within the counties: Alpine, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Madera, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Plumas, San Benito, San Joaquin, Shasta, Sierra, Siskiyou, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yuba. (2) A county or city with a project outside of an urbanized area (an area with a population density of at least 1,000 persons per square mile) anywhere in California. (3) Any city with a population less than 100,000 located in the following counties: Amador, Fresno, Napa, Riverside, San Bernadino, San Luis Obispo, Santa Barbara, Santa Cruz, Solano, Sonoma, Ventura, Yolo.Funding Information : Loan amount maximum of $1 million at 6.5% interest rate amortized over 15 years. Unless the community has lease obligations currently rated by Standard & Poor’s Rating Group, the source of repayment must be a water enterprise fund, a sewer enterprise fund or, if the borrower is a redevelopment agency, a tax increment fund. A water or sewer enterprise fund cannot be used to repay a loan used to build roadways. Funding is available on a continuous basis until all funds - bond proceeds and other available funds - are committed, at which time it is estimated that another revenue bond will be sold.Timelines : Applications are accepted year round. The REDIP Panel intends to meet on a quarterly basis to consider loan applications.Contact : Venoo Chisholm, REDIP ManagerCA Trade and Commerce Agency 801 K Street, Suite 1700 Sacramento, CA 95814 Phn (916)322-1498 Int www.commerce.ca.gov/index.html |