PURPOSE: This rule defines terms and establishes guidelines for the implementation of an economic development project category, as created under section 32.105, RSMo.

1. (1) As used in the implementation of the Neighborhood Assistance Act, the following terms shall mean:

   1. (A) Economic development—acquisition, renovation, improvement or the furnishing or equipping of existing buildings and real estate in distressed or blighted areas of the state when this acquisition, renovation, improvement or the furnishing or equipping of the existing buildings and real estate will result in the creation or retention of jobs within the state; and

   2. (B) Distressed or blighted—areas of the state that either—

      1. 1. Have already been designated by the

state as an enterprise zone under section 135.200, RSMo or that meet the eligibility criteria and qualify to be designated as an enterprise zone;

1. 2. Are designated as urban redevelop-

ment areas under Chapter 353, RSMo or that qualify to be designated; or

1. 3. Are designated as blighted or conser-

vation areas under the Real Property Tax Increment Allocation Redevelopment Law, section 99.805(1) and (2), RSMo or that qualify to be designated.

1. (2) Applications will be accepted from any locally based not-for-profit organization wishing to conduct an economic development project.
2. (3) Applicants may not administer more than one (1) Neighborhood Assistance Economic Development Project at a time. A project may include more than one (1) building provided that the proposal meets all other eligibility requirements as set forth in this rule.
3. (4) Applications will be accepted by the Department of Economic Development at any time of the year and will be approved on an individual case-by-case basis as all the necessary requirements are met and as credits become available.
4. (5) A maximum authorization of five hundred thousand dollars ($500,000) in tax credits will be permitted per project and no more than five percent (5%) of the credits authorized for the project will normally be allowed for administrative and operating expenses. In unusual circumstances, a higher percentage may be allowed at the discretion of the Department of Economic Development.
5. (6) Applicants must obtain a nonbinding commitment from a prospective business(es) willing to locate to the facility and demonstrate that at least one (1) job will be created or retained for every ten thousand dollars ($10,000) in credits requested. Eligible types of businesses/jobs include retail, commercial and service as well as manufacturing.
6. (7) Applicants must agree to retain ownership of all properties acquired under this provision of the Neighborhood Assistance Act for a minimum of five (5) years and agree to contractual conditions with the Department of Economic Development governing the use or eventual disposition, or both, of those properties. Contract conditions will include, but not be limited to, lease terms and arrangements for the first five (5) years, and a clause stipulating that the eventual purchase price will be no less than seventy-five percent (75%) of the fair market value of the facility, excluding the value of lease-hold improvements.
7. (8) Eligible donations may include cash, real estate, materials, equipment, supplies, technical assistance or labor and will be valued and documented according to existing Neighborhood Assistance rules contained in 4 CSR 85-2.030 and 4 CSR 85-2.040.
8. (9) No more than two (2) million dollars in credits may be approved for economic development projects in any one (1) fiscal year. AUTHORITY: section 32.110, RSMo Supp. 1990.* Original rule filed Nov. 15, 1989, effective March 11, 1990. Amended: Filed Jan. 3, 1992, effective Aug. 6, 1992. Amended: Filed Dec. 10, 1993, effective July 10, 1994.

*Original authority: 32.110, RSMo 1977, amended 1980, 1989, 1990.