Regional Council Capital Fund Program (ESD Grants – REDC)

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Objective

Funding is for capital-based economic development initiatives intended to create or retain jobs; prevent, reduce or eliminate unemployment and underemployment; and/or increase business activity in a community or region. This year funding includes $8 million for tourism projects, formerly offered though the Market New York Capital Grant program.

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Overview

Capital grant funding from the Regional Council Capital Fund is available through the State‘s Regional Economic Development Council Initiative, which helps drive regional and local economic development across New York State in cooperation with 10 Regional Economic Development Councils (“Regional Councils”). Capital grant funding is available for capital-based economic development projects intended to create or retain jobs; prevent, reduce or eliminate unemployment and underemployment; and/or increase business or economic activity in a community or Region.

Only Minimum grant requests of $100,000 or more will be reviewed.

Applicants are strongly encouraged to reach out to their ESD Regional Office to discuss their project prior to submitting an application.

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Eligibility

Eligible Applicants include but are not limited to for-profit businesses, not-for-profit corporations*, business improvement districts, local development corporations, public benefit corporations (including industrial development agencies), economic development organizations, research and academic institutions, incubators, technology parks, municipalities, counties, regional planning councils, tourist attractions and community facilities.

City, town, and village applicants must be certified by NYS Homes and Community Renewal (HCR) as a pro-housing community** prior to receiving an award.

  • City, town, and village applicants must either be certified as a pro-housing community prior to submitting an application for Regional Council Capital Funds OR
  • Must apply to HCR to become a certified pro-housing community when applying for Regional Council Capital Funds and must be approved for certification prior to award announcements.
  • No awards will be made to cities, towns, or villages that are not a certified pro-housing community at the time of award.

*         If awarded funding, prior to ESD Directors’ approval and execution of a contract with ESD, a not-for- profit corporation must be registered and up-to-date with filings with the New York State Office of the Attorney General’s Charities Bureau and the New York State Office of the State Comptroller’s VendRep System and must be prequalified in the New York Statewide Financial System (SFS).

** The Pro-Housing Certified Communities Program was created to incentivize local governments that are committed to addressing New York’s housing crisis and is administered by NYS Homes and Community Renewal (HCR). HCR will review and certify communities who have taken steps and are committed to increasing their housing stock and once certified, will then be eligible for various NYS programs including the Regional Council Capital Funds program.

Individuals are not eligible to apply.

ELIGBILE PROJECTS AND REQUIREMENTS

Projects will be reviewed for alignment with state and regional priorities, as well as the potential for direct and indirect job creation, direct and indirect fiscal benefit to the state and local governments, overall economic activity, community development, and private investment. Applicants should apply for the necessary amount of funding needed to incentivize the project to occur and request the amount of funding needed to complete their project versus the maximum amount they may be eligible for. A strong emphasis will be placed on project readiness along with the applicant having the capacity to complete the project if awarded.

Assistance generally falls into four categories: 

  1. Business Investment
  2. Economic Growth Investment
  3. Tourism (formerly Market New York Capital Program)
  4. Strategic Focus Areas (Childcare, Distressed Areas, and Innovative Public-Private Partnerships)

 

Funds may be used for: 

  • Acquisition of land, buildings, machinery and/or equipment;
  • Demolition and environmental remediation;
  • New construction, renovation or leasehold improvements;
  • Acquisition of furniture and fixtures;
  • Commercial portion of mixed use projects;
  • Soft costs of up to twenty-five percent (25%) of total project costs; and
  • Other costs / expenditures deemed eligible by ESD.

The following types of expenses are not eligible and should not be included in the project budget:

  • Developer fees;
  • Training;
  • Residential development only projects, although program funds may be used for the non-residential components of a mixed-use project;
  • Medical / hospital development projects although medical research facility projects will be considered for funding;
  • Retail development projects;
  • Block grant projects or revolving loan funds;
  • Home based service provider projects;
  • In-kind costs;
  • Overhead and indirect costs associated with the day-to-day operations of the eligible entity, including but not limited to:
    • Salaries and wages;
    • Fringe benefits;
    • Rent/lease costs;
    • Website maintenance;
    • App maintenance; and
    • Communication;
  • Marketing or advertising media costs;
  • Events;
  • Costs associated with completing an application;
  • Costs incurred prior to the submission and award of a grant, actual or anticipated; and
  • Other costs / expenditures deemed ineligible by ESD.