The purpose of these regulations is to implement the Meriden
Manufacturing Assistance Program (MAP) adopted by the Meriden City
Council on September 18, 1995. The MAP is to be managed by the
MMAA ("the Agency") as per these regulations. The
purpose of the MAP is to assist Meriden businesses to grow and add
jobs in circumstances where access to capital is restricted. The
MAP is intended to supplement conventional financing of such
expansions. The MAP is implemented in part through section 32-220
of Connecticut General Statutes.
Assistance
The MAP is intended to provide assistance in the form of:
| 1. |
revision of a loan guarantee through a qualified public or
private lending institution; and |
| 2. |
under certain circumstances, a direct loan serviced by a
qualified lender. |
Amount
The amount of financing is limited to $500,000 per transaction. No
business may receive such assistance more than once in every five
year period.
Eligible Projects
Eligible projects are the purchase of a manufacturing facility,
the construction of a manufacturing facility, or the substantial
renovation or expansion of a manufacturing facility. The
manufacturing facility must consist of a plant, building or other
real property, improvement or part thereon. If acquired, it must
have been idle for at least one year prior to the acquisition. The
Agency may waive the idleness requirement upon determination that
there is a likelihood that the facility will remain idle for one
year. It must be acquired by an organization which is unaffiliated
with the seller.
A manufacturing facility may consist of an entire plant,
structure or other real property improvement or may consist of a
part or section of a building or improvement. Only that part which
is acquired, constructed or renovated will be designated as the
facility. A manufacturing facility is acquired for the purpose of
these regulations if title is acquired by a new owner through
purchase, or is leased to a new occupant. In the case of a lease,
the lease must be for a minimum term of five years with a
renewable option for an additional five years or other evidence of
a substantial long term commitment for the facility.
A manufacturing facility is a facility used for:
| 1. |
the manufacturing, processing or assembly of raw
materials, parts or manufacturing products; |
| 2. |
the significant servicing, overhauling or rebuilding of
machinery and equipment for industrial use; |
| 3. |
the distribution in bulk of manufactured products other
than on a retail basis; and |
| 4. |
research and development activities directly related to
manufacturing. Research and development activities are
considered to be directly related to the manufacturing
process when the company has any of the standard industrial
classification codes as listed in these regulations. |
Qualified Lender
A qualified lender is a financial institution or other
organization designated as qualified by the Agency prior to
application. To be designated as a qualified lender the
institution or organization must apply in writing to the Agency
providing documents which describe the conditions under which the
institution or organization will participate in the program.
Application
Application for assistance under the MAP must be by the qualified
lender on forms approved by the Agency. The application will
consist of a request for specific assistance by the qualified
lender with accompanying business plans, financial statements,
project descriptions, project budgets, recommended collateral and
such other information as the lender deems appropriate.
The information contained in the application must include but
is not limited to:
| 1. |
a description of the proposed
project which shall consist of the following: |
|
a. |
a legal description of the real property
within the boundaries of the project area; |
|
b. |
a description of the present condition and
uses of such real property; |
|
c. |
a description of the types and locations of
land uses or building uses proposed for the project area; |
|
d. |
a description of the types and locations of
present and proposed streets, sidewalks and sanitary,
utility and other facilities and the types and locations of
other proposed project improvements; |
|
e. |
statement of the present and proposed zoning
classification and subdivision status of the project area
and the areas adjacent to the project area; |
|
f. |
a plan for relocating project area occupants; |
|
g. |
a financing plan; |
|
h. |
an administrative plan; |
|
i. |
an environmental analysis, marketability and
proposed land use study, or building use study if required
by the Agency; |
|
j. |
appraisal reports and title searches if
required by the Agency; and |
|
k. |
a description of the economic benefit of the
project, including the number of jobs which the applicant
anticipates would be created or retained by the project,
estimated property tax benefits and the number and types of
existing housing units in the municipality in which the
project would be located and in continuous municipalities,
which would be available to employees filling such jobs; if
required by the Agency. |
| 2. |
information concerning the
financial and technical capacity of the eligible applicant
to undertake the proposed project; |
| 3. |
a project budget; |
| 4. |
identification, when appropriate,
of business support services that may be of benefit to the
state and the manufacturing and economic base businesses
located or locating in the project areas as part of the
project. |
Implementation
In order to approve an application, the Agency must find that:
| 1. |
the land and buildings within the boundaries of the
project area will be used principally for manufacturing or
other economic base business purposes or business support
services; |
| 2. |
the plan is in accordance with the plan of development for
the municipality; |
| 3. |
the project will contribute to the economic welfare of the
municipality and that to carry out and administer the
project, public action is required. |
Upon approval by the Agency of any application, the Agency will
forward the approved application and project plan to the City
Council for final approval. If approved, the Agency will cause
funds, guarantee documents, or other appropriate assistance to be
dispersed to the qualified lender or the manufacturing business
directly.
Information
For more information on the program and/or these regulations, and
for a list of qualified lenders you may contact the Economic
Development Division of the Office of the City Manager.
The following provision is added to the City's Manufacturing
Assistance Program (MAP) per City Council Resolution 4/1/02:
| 1. |
The City Council may approve
reimbursement to selected businesses (e.g., bio-tech,
high-tech, or other specialized enterprises) for up to
$15,000 for the following expenses: |
|
a. |
Computer equipment |
|
b. |
Computer networking costs |
|
c. |
Telephone equipment |
|
d. |
Moving expenses |
|
e. |
Laboratory development/outfitting costs |
|
f. |
Specialized utility expenses |
|
g. |
Other Unique expenses |
| 2. |
Upon approval, the City shall
reimburse the owner or lessee for such expenses, only after
such expenses have been incurred. |
| 3. |
Such reimbursement shall be
subject to appropriate documentation. |
| 4. |
Applicants under this program
will be limited to companies relocating to Meriden, or
relocating a major portion of their operations to the City. |
| 5. |
Requests shall be limited to
companies of 100 employees or less with total annual
revenues of $2 million or more. |
|
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