The board is authorized to make direct loans to political subdivisions of the state and to federally recognized Indian tribes for the purposes of assisting the political subdivisions and federally recognized Indian tribes in financing the cost of public facilities, including development of land and improvements for public facilities, project-specific environmental, capital facilities, land use, permitting, feasibility, and marketing studies and plans; project design, site planning, and analysis; project debt and revenue impact analysis; as well as the construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision or the federally recognized Indian tribe and the finding by the board that financial circumstances require grant assistance to enable the project to move forward. However, no more than twenty-five percent of all financial assistance approved by the board in any biennium may consist of grants to political subdivisions and federally recognized Indian tribes.

     Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

     (1) The board shall not provide financial assistance:

     (a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

     (b) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state.

     (c) For a project the primary purpose of which is to facilitate or promote gambling.

     (d) For a project located outside the jurisdiction of the applicant political subdivision or federally recognized Indian tribe.

     (2) The board shall only provide financial assistance:

     (a) For a project demonstrating convincing evidence that a specific private development or expansion is ready to occur and will occur only if the public facility improvement is made that:

     (i) Results in the creation of significant private sector jobs or significant private sector capital investment as determined by the board and is consistent with the state comprehensive economic development plan developed by the Washington economic development commission pursuant to chapter 43.162 RCW, once the plan is adopted; and

     (ii) Will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities;

     (b) For a project that cannot meet the requirement of (a) of this subsection but is a project that:

     (i) Results in the creation of significant private sector jobs or significant private sector capital investment as determined by the board and is consistent with the state comprehensive economic development plan developed by the Washington economic development commission pursuant to chapter 43.162 RCW, once the plan is adopted;

     (ii) Is part of a local economic development plan consistent with applicable state planning requirements;

     (iii) Can demonstrate project feasibility using standard economic principles; and

     (iv) Is located in a rural community as defined by the board, or a rural county;

     (c) For site-specific plans, studies, and analyses that address environmental impacts, capital facilities, land use, permitting, feasibility, marketing, project engineering, design, site planning, and project debt and revenue impacts, as grants not to exceed fifty thousand dollars.

     (3) The board shall develop guidelines for local participation and allowable match and activities.

     (4) An application must demonstrate local match and local participation, in accordance with guidelines developed by the board.

     (5) An application must be approved by the political subdivision and supported by the local associate development organization or local workforce development council or approved by the governing body of the federally recognized Indian tribe.

     (6) The board may allow de minimis general system improvements to be funded if they are critically linked to the viability of the project.

     (7) An application must demonstrate convincing evidence that the median hourly wage of the private sector jobs created after the project is completed will exceed the countywide median hourly wage.

     (8) The board shall prioritize each proposed project according to:

     (a) The relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed, but also giving consideration to the unemployment rate in the area in which the jobs would be located;

     (b) The rate of return of the state's investment, including, but not limited to, the leveraging of private sector investment, anticipated job creation and retention, and expected increases in state and local tax revenues associated with the project;

     (c) Whether the proposed project offers a health insurance plan for employees that includes an option for dependents of employees;

     (d) Whether the public facility investment will increase existing capacity necessary to accommodate projected population and employment growth in a manner that supports infill and redevelopment of existing urban or industrial areas that are served by adequate public facilities. Projects should maximize the use of existing infrastructure and provide for adequate funding of necessary transportation improvements; and

     (e) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007.

     (9) A responsible official of the political subdivision or the federally recognized Indian tribe shall be present during board deliberations and provide information that the board requests.

     Before any financial assistance application is approved, the political subdivision or the federally recognized Indian tribe seeking the assistance must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

[2008 c 327 § 5; 2007 c 231 § 3; 2004 c 252 § 3. Prior: 2002 c 242 § 4; 2002 c 239 § 1; 1999 c 164 § 103; 1996 c 51 § 5; 1993 c 320 § 4; 1990 1st ex.s. c 17 § 73; 1989 c 431 § 62; 1987 c 422 § 5; 1985 c 446 § 3; 1983 1st ex.s. c 60 § 3; 1982 1st ex.s. c 40 § 6.]

NOTES:

     Effective date -- 2008 c 327 §§ 1, 2, 4-11, 17: See note following RCW 43.160.010.

     Findings -- Recommendations -- Reports encouraged -- 2007 c 231: See note following RCW 43.155.070.

     Findings -- Intent -- 2002 c 242: See note following RCW 43.84.092.

     Findings -- Intent -- Part headings and subheadings not law -- Effective date -- Severability -- 1999 c 164: See notes following RCW 43.160.010.

     Severability -- Effective dates -- 1996 c 51: See notes following RCW 43.160.010.

     Intent -- 1990 1st ex.s. c 17: See note following RCW 43.210.010.

     Severability -- Part, section headings not law -- 1990 1st ex.s. c 17: See RCW 36.70A.900 and 36.70A.901.

     Severability -- Section captions not law -- 1989 c 431: See RCW 70.95.901 and 70.95.902.