PRINTER'S NO. 3691
No. 2791 Session of 1992
INTRODUCED BY TRICH, ITKIN, STEIGHNER, LESCOVITZ, DALEY,
COLAIZZO, PETRONE, TRELLO, MELIO, SCRIMENTI, KAISER,
ROBINSON, KUKOVICH AND FREEMAN, JUNE 2, 1992
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 2, 1992
AN ACT
1 Amending the act of July 10, 1989 (P.L.313, No.52), entitled "An
2 act establishing an industrial communities action program for
3 making grants to industrial communities to complement private
4 investment at industrial sites; and prescribing requirements
5 of and conditions for grants," further providing for
6 definitions, for project eligibility and for time limit on
7 award of grants.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 3, 5 and 9 of the act of July 10, 1989
11 (P.L.313, No.52), known as the Industrial Communities Action
12 Program Act, are amended to read:
13 Section 3. Definitions.
14 The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Community." A city, borough, incorporated town, township or
18 home rule municipality other than a county.
19 "Department." The Department of Commerce of the
20 Commonwealth.
1 "Investor/developer." Any person, partnership, corporation
2 or other business entity that is engaged in the development, for
3 use by occupants, of one or more projects and that is determined
4 by the department to be financially responsible to assume all
5 obligations in the acquisition, development, construction,
6 leasing, sale, operation and financing, in whole or part, of a
7 project.
8 "Local sponsor." The term includes the following:
9 (1) A municipality.
10 (2) An industrial and commercial development authority
11 organized pursuant to, or industrial development authority as
12 certified by the department under, the act of August 23, 1967
13 (P.L.251, No.102), known as the Industrial and Commercial
14 Development Authority Law.
15 (3) An industrial development corporation [certified] as
16 defined under the act of May 17, 1956 (1955 P.L.1609,
17 No.537), known as the Pennsylvania Industrial Development
18 Authority Act.
19 (4) A council of government organization or any
20 multimunicipal agency organization created under the act of
21 July 12, 1972 (P.L.762, No.180), referred to as the
22 Intergovernmental Cooperation Law.
23 (5) A municipal authority organized under the act of May
24 2, 1945 (P.L.382, No.164), known as the Municipality
25 Authorities Act of 1945.
26 (6) A redevelopment authority organized under the act of
27 May 24, 1945 (P.L.991, No.385), known as the Urban
28 Redevelopment Law.
29 (7) A local development district of the Appalachian
30 Regional Commission.
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1 "Municipality." Any county, city, borough, incorporated
2 town, township or home rule municipality.
3 "Program." The Industrial Communities Action Program
4 established by this act.
5 "Project." Any of the following activities:
6 (1) The acquisition of land and buildings.
7 (2) The demolition of buildings.
8 (3) The clearing and preparation of land.
9 (4) The construction of new industrial or manufacturing
10 facilities.
11 (5) The renovation of existing industrial or
12 manufacturing facilities.
13 (6) The cleanup of hazardous waste materials.
14 (7) The construction of new or the reconstruction of
15 existing infrastructure or utilities.
16 "Secretary." The Secretary of Commerce of the Commonwealth.
17 Section 5. Project eligibility.
18 (a) Eligibility.--A local sponsor shall be eligible for a
19 grant under the program for a project that meets all the
20 following conditions:
21 [(1) The project will create multitenant facilities for
22 manufacturing, industrial, research and development, or other
23 industries that produce goods, as determined by the
24 department.]
25 (1) The project will create multitenant facilities for
26 use by manufacturing, industrial, research and development
27 enterprises or other enterprises that the department
28 determines will generate a substantial multiplier effect on
29 the regional economy. Enterprises to occupy the facilities
30 shall be found to be generating a substantial multiplier
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1 effect if:
2 (i) The enterprise offers employment comparable in
3 wages and benefits to industrial enterprise activity in
4 the region.
5 (ii) The enterprise provides goods or services which
6 add value to the goods or services of other businesses
7 important to the regional economy.
8 (iii) The enterprise performs services to customers
9 outside the region.
10 Retail enterprises with sales at the point of location shall
11 not be considered eligible.
12 (2) The project will be carried out under the direction
13 and control of a responsible investor/developer, as
14 determined by the department.
15 (3) The project shall demonstrate the potential to
16 create, within five years after the completion of the
17 project, one employment opportunity for each $50,000 granted
18 under the program.
19 (4) The investor/developer shall contribute equity to
20 the project in an amount equal to at least 5% of the total
21 eligible project cost.
22 (b) Maximum grant amount.--The maximum amount of grant funds
23 awarded for any project shall not exceed 25% of the total
24 eligible project cost and in no case shall the maximum amount of
25 any one grant exceed $1,000,000 in the year of the award nor a
26 total of $2,000,000 for any number of fiscal years. In addition,
27 the total amount of grant funds awarded in any one fiscal year
28 must be matched by private investment in an aggregate total
29 equal to or greater than three times the amount of grant funds
30 awarded.
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1 (c) Private match.--In addition to the equity required under
2 subsection (a), private match for the balance of project
3 financing shall be identified to the satisfaction of the
4 department. Private match may include other forms of private and
5 public financing, but in no case may funds derived directly from
6 Commonwealth sources be considered as private match. For the
7 purposes of this act, funds received by local sponsors from the
8 Commonwealth for pass-through to private companies or private
9 developers shall be considered Commonwealth funds.
10 Section 9. Time limit on award of grants.
11 No grants shall be awarded by the department to any eligible
12 applicant under this act after June 30, [1992] 1995.
13 Section 2. This act shall take effect in 60 days.
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