Request for Applications: Revitalization and Placemaking Program (US)

The Revitalization and Placemaking (“RAP”) Program is an incentive program that will proactively deploy state funding to address community revitalization needs in Michigan communities by investing in projects that enable population and tax revenue growth through rehabilitation of underutilized buildings and historic structures, and development of permanent place-based infrastructure associated with social zones and traditional downtowns, outdoor dining, and place-based public spaces.

Administered by the Michigan Economic Development Corporation (“MEDC”), this tool provides access to development gap financing for real estate rehabilitation and development projects; public place-based infrastructure projects; or façade improvement program implementation projects. Grants will be awarded for individual projects; however, grants for place-based infrastructure and/or façade program implementation may be awarded to subgrant programs. Awards may be made based on individual application or based on funding rounds as determined by the MEDC.

Goals

• Through the RAP Program, the MEDC partners with local communities to proactively address revitalization needs by investing in projects that promote population and tax revenue growth. These investments help create the environment necessary to attract and retain talent, add new housing options, enable business creation and attraction, and provide resources for Michigan citizens and communities.

Funding Information

• Funding availability is based on income tax revenue deposited into the Revitalization and Placemaking Fund and appropriated for this program as described in Section 696 of the Income Tax Act of 1967.
• Grants for place-based infrastructure and/or façade program implementation may be awarded to subgrant programs and will have unique funding limits as determined in the funding round.
• All awards will be structured as performance-based reimbursement grants with milestones and reporting requirements:
  • Real Estate Rehabilitation and Development:
    • Grant awards on a single project associated with the rehabilitation of vacant and blighted buildings or costs associated with the repurposing of space left vacant shall not exceed the lesser of $1.5 million or 50% of Eligible Costs, except all allowed under 2. below.
    • Grant awards for a single project with an extraordinary economic development impact or public benefit that has maximized all other state loans and financing tools as determined by the MEDC, will be eligible for an award amount up to the lesser of $5 million or 50% of the Eligible Costs. Any project for consideration must pursue and maximize all additional programs and/or funding sources available to support the project (e.g., Loan capacity, Housing TIF, Federal Historic Tax Credit, etc.). Also, any instances of Extraordinary Economic Development Impact/Public Benefit shall satisfy the MEDC Place Incentives Guidance, and embody one or more of the additional qualities described below:
      • Project will eliminate long lasting instances of blight and/or environmental contamination (10+ years), through the redevelopment of the property.
      • Project has a geographic correlation, and addresses community needs associated with a significant, strategic MEDC investment.
      • Project is proposed in an area of historic disinvestment and has not seen new or rehabilitated mixed-use development in 5+ years.
  • Public Place-Based Infrastructure:
    • For a single project associated with the development of permanent place-based infrastructure in support of a traditional downtown or central business district and associated with social zones, outdoor dining, etc.: must have a minimum request of $500,000 and a maximum of the lesser of $1 million or 50% of Eligible Costs.
    • Grant applications will be accepted as part of an application round as announced by the MEDC.
  • Public Place-Based Infrastructure and/or Façade Program (Subgrant Funding Rounds):
    • There is no minimum or maximum request amount for subgrant applications, but applicants are encouraged to only include the most competitive projects and to recognize that all projects in the grant application must meet readiness requirements and have all funding sources secured.
    • There is no minimum grant amount for each subrecipient grant within the subgrant application, but the maximum grant amount for each subrecipient grant request within the subgrant application is limited to the lessor of $500,000 or 50% of Eligible Costs.
    • Grant applications may be submitted as part of an application round as announced by the MEDC

Eligible Costs

• “Eligible Costs” are at least one, or any combination, of the following expenditures:
  • Acquisition or costs for real property;
  • Fees or costs for alteration, new construction, improvement, demolition, or rehabilitation of buildings of an approved project, including utility tap fees, and fees and costs paid to a governmental entity for permits, zoning, and inspections;
  • Costs associated with site improvements such as access (including ADA improvements) and streetscaping elements such as lighting, fencing, street furniture, etc.;
  • Fees or costs for site improvements, including a surface parking lot, parking garage, parking ramp, utilities and public infrastructure, such as roads, curbs, gutters, sidewalks, landscaping, lighting, grading and land balancing;
  • Fees or costs for the addition of machinery, equipment or fixtures for an approved project;
  • Professional fees or costs for an approved project for the following services: architectural, engineering, environmental, and surveying;
  • Real estate developer fees not to exceed 4% of total project costs;
  • Other costs associated with real estate or place-based infrastructure development or administration of subgrant programs may be considered on a case-by-case basis or as defined within a funding round.

Eligibility Criteria 

• Eligible Applicants:
  • Real Estate Rehabilitation and Development: Individuals or entities working to rehabilitate vacant, underutilized, blighted, and historic structures. These applicants may include but are not limited to: non-profits and local economic development organizations or private real estate developers.
  • Public Place-Based Infrastructure (individual projects): Individuals or entities working on the development of permanent place-based infrastructure associated with traditional downtowns, social-zones, outdoor dining and placed-based public spaces. These applicants may include but are not limited to: Municipal or economic development organizations such as Downtown Development Authorities, local units of government, local Land Bank Fast Track Authorities or other entities approved by the MEDC.
  • Façade or Public Place-Based Infrastructure Subgrant (as part of a funding round): Economic development organizations and other public entities working to improve the streetscape in traditional downtowns and neighborhood commercial nodes by investing in place-based infrastructure on publicly owned and maintained properties or investing in private building facades through an existing and active local façade improvement program.
• Eligible Properties:
  • Real Estate Rehabilitation and Development:
    • Must qualify as Previously Developed Property and may have previously contained or currently contains a structure.
    • Must be located in or contributing to a traditional downtown, central business district, neighborhood commercial node or adjacent walkable neighborhood; and
  • Public Place-Based Infrastructure:
    • Must be located in or contributing to a traditional downtown, central business district, neighborhood commercial node or adjacent walkable neighborhood; and
    • Must be a property and be owned and maintained by a municipality or community focused non-profit; and
    • Must be a physical location that is generally open and accessible to the public, without cost, and is owned and maintained for the public good. Public space can be used for recreation, public use, or as places for people to gather.
  • Façade Program Implementation:
    • Must be located in or contributing to a traditional downtown, central business district, neighborhood commercial node or adjacent walkable neighborhood; and
    • Must fit the requirements of the local and currently active façade improvement program.

For more information, visit MEDC.