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Preface
The South Dakota Department of Transportation has developed a grant program to foster
economic development and enhance community access in South Dakota. The program has two
categorical purposes. The Industrial Park grants will be made to any local unit of
government for the development of new or expanded access for new industry located within
industrial parks.
Community Access Grants are state funds for towns less than 5,000 in population and are
for the construction or reconstruction of major streets in town such as Main Street, the
road to the elevator, schools, hospitals, etc. This program provides for 60% of the
construction costs of the project, not including engineering or utility work.
Applications are usually due by August 1st of each year. The program is funded
at $1,500,000 per year. Grant size is limited to $400,000.
All grants will be based on the criteria developed by the Department of Transportation.
The expenditure authority for the program will be determined by the Transportation
Commission at their May meeting for the next Federal fiscal year. All grants must be
approved by the Transportation Commission, and may be used to construct or reconstruct
roads and streets in the community.
Section A - Industrial Park Grant Program
Industrial Park Grants are state funds which provide assistance to communities when
they have a new or expanding industry, and they need to provide street access. The grant
program works in cooperation with the Governor’s Office of Economic Development. The
program pays for 80% of the construction costs of the project, not including engineering
or utility work. Applications are received on an as-needed basis. The program is funded at
$1,000,000 per year and there is no grant size limit.
1. Sponsor
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An Industrial Development Corporation, or an equivalent organization, or
local unit of government shall file an application through the sponsoring local governing
body to the Secretary of Transportation. The sponsor must be a local government body
(city, town, tribe, township, or county). |
2. Application
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The application should show that the following criteria
have been met:
| a. |
commitment for the start of actual construction of the industrial or
economic development facility within six months of date of commission approval; or |
| b. |
evidence that new construction or expansion of an industrial or economic
development facility that meets all other program criteria has been documented within the
past year and that previous grants have not been obtained based on the same justification; |
| c. |
there is a minimum committed capital investment of at least five (5) times
the required state participation costs; |
| d. |
the total employment for all facilities in the industrial park or
development project should be at least 50; |
| e. |
A minimum of five (5) new jobs will be created by the industrial or
economical development; and |
| f. |
the extent of local participation in funding shall be as designated in
paragraph A.3. |
Applications can qualify for funding by meeting either criteria (a) or criteria (b).
Items (c), (d), or (e) can be waived by the Transportation Commission.
Industrial Park Grant Application Form
- Word Format
- Adobe PDF
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3. Project Types Eligible for Funding
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All applications will be reviewed and prioritized for funding
utilizing the following criteria:
- Priority One Projects: Construction of roads meeting program criteria and located
within a defined industrial park. A minimum of (60%) of State allocated industrial park
funds may be used for Priority One Projects. Twenty percent (20%) of the construction
costs to be paid for by the applicant.
- Priority Two Projects: Construction of roads meeting program criteria that serve
as primary access roads to an industrial park but are actually located parallel to an
industrial park, or that connect a major route or street to an industrial park. Up to
forty percent (40%) of State allocated industrial park funds may be used for Priority Two
Projects. Forty Percent (40%) of the construction costs are to be paid for by the
applicant.
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4. Zoning
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All land in the industrial park or development area must be zoned
Industrial. |
5. Land Title
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Title to all land in the industrial park area or development project area
shall be vested with one of the following: 1) in a subdivision of government; 2) an
industry committed to construction of an industrial development facility or development
project; or 3) an Industrial Development Corporation or its equivalent. |
Section B - Community Access Grant Program
Community Access Grants are state funds for towns less than 5,000 in population and are
for the construction or reconstruction of major streets in town such as Main Street, the
road to the elevator, schools, hospitals, etc. This program provides for 60% of the
construction costs of the project, not including engineering or utility work. The program is funded at $1,500,000 per
year. Grant size is limited to $400,000.
1. Sponsor
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Any incorporated City with a population of less than five thousand (5,000)
residents, township, county, or tribal government may file an application to the Secretary
of Transportation. |
2. Application
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Potential applicants may obtain an application package from the office of
Local Government Assistance in the Department of Transportation. The following is a list of the components that must be included in the
application package:
| a. |
Application Cover Sheet |
| b. |
Application Form |
| c. |
Project Narrative |
| d. |
Engineering Report
| 1) |
Scope of Work |
| 2) |
Typical Section |
| 3) |
Appropriate maps and drawings |
| 4) |
Cost estimates of project |
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| e. |
A commitment for continued maintenance of the project (City Resolution) |
| f. |
Co-operative agreements with other units of local government if applicable |
| g. |
A Local Government Resolution of firm financial commitment for local unit
of government to cover the costs of the engineering and the local match |
| h. |
A commitment to secure any needed Right-of-Way or Easements for
Construction (if required) |
Community Access Grant Application Form
- Word Format
- Adobe PDF
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3. Project Selection
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Projects will be selected and grant amounts determined by the DOT based on
need, population and economic impact. |
4. Size of Grant
| a. |
Ceilings. A grant may not exceed four hundred thousand dollars ($400,000)
in State funds. In cases where a project can demonstrate an extraordinary state-wide
economic development potential, the State may grant a waiver from this limitation. Forty
percent (40%) of construction costs are to be paid for by the applicant. |
| b. |
Individual grant amounts. Individual grants will be awarded only in
amounts commensurate with the requirements of the proposed project. In determining
appropriate grant amounts for each applicant, the State will consider an applicant’s
population, need, proposed activities and ability to carry out the proposed the proposed
program including the ability to cost-share. |
| c. |
A minimum of 25% of the funds available for this program will be granted
to towns with a population under 1,000. |
Section C - General Conditions of the Grants
- These funds may not be used to match federal dollars on any DOT project within the local
unit of government.
- The roadway right-of-way must be dedicated to public use, and obtained by the local unit
of government.
- State participation is limited to roads totaling one mile or less in length.
- The local government agency shall be responsible for maintenance of the completed access
road and shall provide evidence of that commitment.
- Construction costs for furnishing and installing sanitary sewers and utilities will not
be funded by the DOT.
- Design and Construction engineering costs and administrative fees are to be paid for by
the applicant, and are not to be included in the local match.
- Local sponsor is responsible for the payment of 100% of the ineligible items included in
the project.
- The final decision on funding shall rest with the South Dakota Transportation
Commission.
Section D - Project Development Process
The following policy and procedure will be followed:
| 1. |
Submission of Proposal The
local unit of government submits a minimum of three (3) copies of their proposal for
Industrial Park Grant funds, or two (2) copies of their proposal for Community Access
Grant funds to the Secretary of Transportation. The Secretary of Transportation submits a
copy of the Industrial Park Grant applications to the Governor’s Office of Economic
Development (GOED) for review and comment.
In this proposal, the local development corporation or local unit of government answers
the criteria for State participation as set by the Department of Transportation for
Industrial Park and Community Access Grant Programs. In addition, the applicant provides a
resolution passed by the local government sponsor committing to the availability of the
necessary public right-of-way, or that they will provide same, and that the local
governmental agency will accept the maintenance responsibility for the facility.
This proposal must include an application form and any pertinent design details of the
project, i.e., scope of work, location, length, pictures, engineering report, typical
section, proposed surfacing, expected traffic, etc., and the estimated construction cost
which the State is expected to participate in. The design data and estimate are to be
prepared under the supervision of registered professional engineer.
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| 2. |
GOED Review Verifications and
Recommendation (Industrial Park Grant Application) The Office of Local
Government Assistance will request a review of the proposal from the Governor’s
Office of Economic Development. The GOED, having generally worked with the communities
making application, is the most qualified of the State agencies to ascertain the
following:
| a. |
if industrial or economic development has or can be expected to
materialize; |
| b. |
if the construction of the proposed facility is necessary for development |
| c. |
and that the future development is in effect a reality |
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When the Governor’s Office of Economic Development has thoroughly reviewed the
proposal, their recommendation, and their verification that they are satisfied that an
industry or business has committed to locate or expand in an industrial park or community,
are forwarded to the Office of Local Government Assistance.
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| 3. |
DOT Commission Action The
Transportation Commission at their May meeting will establish the funding for the Program
for the following federal fiscal year. All carry over funds shall be dedicated for use in
the next fiscal year. Each applicant will be notified by the Secretary of Transportation
as to acceptance or rejection of their proposal.
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| 4. |
Agreement After being
notified of acceptance of their application, the applicant will be sent an agreement
wherein the State agrees to pay the eligible percentage of the construction costs. This
financial agreement will commit the State to a maximum amount, with the final payment
based on actual construction costs. The maximum amount allowed will be the amount approved
by the Transportation Commission. In the event conditions develop requiring additional
funding, that funding must be provided by the local unit of government, unless a
supplement grant is applied for and secured from the Transportation Commission.
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| 5. |
Plans Submittal, Review, and Approval Upon
notification of acceptance, the applicant will prepare the necessary construction plans,
specifications and estimates. The Department of Transportation, Division of Fiscal and
Public Assistance, will coordinate the development and review of the plans. The South
Dakota Department of Transportation, Division of Planning and Engineering, will provide
the applicant with technical assistance in the design of the project. The plans,
specifications, and estimates are to be submitted to the Program Manager, Office of Local
Government Assistance. The Director of Fiscal and Public Assistance will coordinate the
technical assistance, review, and approval of the plans with the Division of Planning and
Engineering.
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| 6. |
Project is Let Upon execution of the above
agreement, and approval of the plans and specifications by the State, the applicant will
be authorized by letter from the Office of Local Government Assistance to advertise the
project for bids.
The State reserves the right to let the project to bids, if they so choose.
This letting shall be in conformance with procedures approved by the Department of
Transportation. After the applicant has received bids and taken action to award the bid, a
copy of that action along with the Abstract of Bids and a copy of the engineer's
detail cost estimate shall be forwarded to the Office of Local Government Assistance for
concurrence in the award by the State. The award of the contract will be contingent on the
concurrence of the Secretary of Transportation, after which construction can begin.
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| 7. |
Construction of the Project The applicant
shall be responsible for the design and construction engineering. Construction change
orders must be reviewed and approved by the Department of Transportation, Office of Local
Government Assistance.
Any change orders and/or request for payment should be sent to Local Government
Assistance, Department of Transportation, 700 E. Broadway, Pierre, SD 57501-2586.
If the applicant fails to place the proposed construction under contract within two
years of the date of the approval of the proposal by the Transportation Commission, the
grant shall expire.
Failure to comply with approved plans and specifications will be cause for the
Department of Transportation to withhold participation and reimbursement.
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| 8. |
Billing Partial payments may be made by
the State on receipt of an itemized partial progress estimate submitted by the local
government agency and certified by a registered professional engineer. The State will pay
the local unit of government, who will in-turn pay the contractor.
Any pay requests should be sent to Local Government Assistance, Department of
Transportation, 700 E. Broadway, Pierre, SD 57501-2586. Final payment will be made after a
final inspection, and upon receipt of certification by a registered professional engineer
that the project is complete and construction is in conformance with the contract as
awarded. The final inspection may be attended by the Office of Local Government
Assistance. |
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