The amount of funds available to a municipality for development grants is based on a percentage of the net project cost. The net project cost is the total project cost less the estimated income from the project. Eligible project costs include:
(1) real estate acquisition and disposition financing for a period;
(2) site clearance;
(3) site development;
(4) planning and engineering;
(5) administration of the project;
(6) interest costs for temporary and definitive financing for a period not to exceed five years on a principal amount not to exceed the required matching local share; and
The purchase of vehicles and interim and final audits are not eligible costs. Interim audits are required every two years through the duration of the development project.
The project income includes monies or the value of goods and services received from:
(1) the sale or lease of land;
(2) the temporary use of land, residences or businesses prior to their dispositions;
(3) the sale or lease of sand, gravel, or other earthen materials;
(4) the sale or lease of buildings, machinery, equipment or other materials of value, occupying land areas within the project area;
(5) other state grants;
(6) federal capital grants approved for a non-distressed municipality; and
(7) Interest income realized from the investment of project monies.
(c) The maximum development grant available to a non-distressed municipality shall not exceed fifty percent of the net project cost. The maximum development grant available to a distressed municipality, as defined in Section 32-9p of the General Statutes, shall not exceed sixty-five percent of the net project cost, Federal capital grants approved for the distressed municipality shall, to the extent permitted by federal law, be used to pay the distressed municipality's share of the net project cost. If the federal capital grant exceeds the distressed municipality's share of the net project cost, such excess shall be applied to reduce the development grant available to the distressed municipality. When two towns jointly initiate a development project, the maximum development grant shall not exceed seventy-five percent of the net project cost.
(d) In determining the amount of specific development grants, the Commissioner shall take into account the availability of grant funds, the municipality's need for a development project, and the likelihood that a particular project will advance the purposes of the Act.