La. Admin. Code tit. 13 § III-105

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-105 - General Principles

A. The following general principles, including the eligibility requirements set forth in §107 and the criteria provided in §109 below, will direct the administration of the Economic Development Award Program (EDAP).

1. LEDC acting through LED may make an EDAP award, by grant or loan, on terms and conditions which are determined by the LEDC board in its discretion, considering the recommendations of the Secretary and/or the staff of LED or LEDC, or by the staff of LED or LEDC in the absence of a determination by the LEDC board, will be beneficial in meeting the goals and purposes stated in the preamble and purpose of these rules.

2. Awards are not to be construed as an entitlement for companies locating or located in Louisiana, and are subject to the discretion of the LEDC board, after considering the recommendations of the Secretary and/or the staff of LED or LEDC.

3. An award must reasonably be expected to be a significant factor in a company's location, investment and/or expansion decisions.

4. Awards must reasonably be demonstrated to result in the improvement of or enhancement to the economic development and well-being of the state and local community or communities wherein the project is or is to be located.

5. The retention and strengthening of existing businesses will be evaluated using the same procedures and with the same priority as the recruitment of new businesses to the state.

6. The anticipated economic benefits to the state and to the local community or communities wherein the project is or is to be located will be considered in approving and making the award.

7. The favorable recommendation of the local governing authority wherein the project is or shall be located is expected and will be a factor in the consideration of the award.

8. Appropriate cost matching or funds matching by the applicants, private investors, the local community and/or local governing authority, as well as among project beneficiaries will be a factor in the consideration of an award.

9. Award funds shall be utilized for the approved project only.

10. In a sponsored project, during the term of the award agreement the sponsoring public entity shall maintain public ownership of the public property and infrastructure improvements acquired or paid for with state funds; and in an unsponsored project, during the term of the award agreement the awardee/company shall maintain ownership of the property and improvements acquired or paid for with state funds. These parties shall not transfer ownership of such property or improvements for less than the fair market value thereof. Should either of these parties elect to sell such property or improvements, or should any other party to the award agreement or any other third party elect to purchase such property or improvements for fair market value during the term of the award agreement, the proceeds derived from such purchase and received by the selling party shall be refunded to LED or LEDC by the selling party immediately on receipt of such proceeds, to be applied as a credit against the remaining unpaid or uncredited balance of the award.

11. In the discretion of the LEDC board, after considering the recommendations of the Secretary and/or the staff of LED or LEDC, a two-year moratorium from the date of an LEDC board approval or award of a grant or a loan may be required on additional EDAP awards for the benefit of the same company at the same location, and a company shall not be eligible for or receive another EDAP award so long as the same company is currently still obligated under an existing EDAP award involving the same location.

12. Whether or not an award will be made is entirely in the discretion of the LEDC board, after considering the recommendations of the secretary and/or the staff of LED or LEDC, and shall depend on the facts and circumstances of each case, the funds available, funds already allocated, and other such factors as the LEDC board may, in its discretion, deem to be pertinent.

13. The approval or rejection of any application for an award shall not establish any precedent and shall not bind the LEDC board, the LED secretary or the staff of LED or LEDC to any course of action with regard to any application or award.

14. A loan award may also take the form of a loan participation, wherein LED or LEDC may act as the originator of the loan, and may share or participate a portion of the loan with another lender or other lenders; or LED or LEDC may act as a participant in a loan, and accept a portion or a share of a loan originated by another lender or other lenders.

La. Admin. Code tit. 13, § III-105

Promulgated by the Department of Economic Development, Louisiana Economic Development Corporation, LR 23:37 (January 1997), amended by the Department of Economic Development, Office of the Secretary, LR 23:1639 (December 1997), LR 25:238 (February 1999), LR 26:237 (February 2000), amended by the Department of Economic Development, Office of Business Development, Louisiana Economic Development Corporation, LR 29:861 (June 2003), LR 31:903 (April 2005), LR 35:872 (May 2009), amended by the Department of Economic Development, Office of the Secretary, Office of Business Development and the Louisiana Economic Development Corporation, LR 40:266 (February 2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104, 36:108, 51:2302, 51:2312, and 51:2341, et seq.