Does passing the resolution to approve CUPPAD’s CEDS (Comprehensive Economic Development Strategy) commit the local unit of government to paying for a project identified in the CEDS?

The answer is no. The CEDS is recognized as a planning document necessary to be eligible for federal (EDA) funding, and as such is not a project application in itself. It is, however the first step in getting an application approved. No local unit of government is committed to paying for any project identified in the CEDS unless they are a party to the formal application and the project is approved by the EDA.

 

If a local unit of government wishes to pursue an EDA grant listed in the CEDS, do the membership dues pay for the project?

No. Membership dues paid to CUPPAD pay for such items as the production of the CEDS, 25 hours of general service for counties and 10 hours for cities, townships, and villages such as researching where funds may be available, etc. , and are matched against EDA money for general and special planning purposes but  are not used to pay the match for specific EDA projects applied for by the local unit of government such as the construction of infrastructure.

 

Does the Local Unit of Government pay the match for a grant funded project identified in the CEDS?

While the Local unit of Government usually pays a portion of the matching costs for a specific funded project, this is not always the case.  EDA Grants pursued by local units of government must be listed in the CEDS or in an amendment to the CEDS prior to an application for an EDA grant.  The match for an EDA grant funded project is typically paid for from a number of sources. It may have State Funding, is likely to have private funding from the benefiting business or industry, and may have funds contributed by the local unit of government.  In the words of one EDA official, “The EDA is not concerned where the match comes from but does require that the match be made.”  If the benefiting company is willing to pay for the entire local match for an EDA grant, the local unit of government would not have any matching funds. Typically, the EDA will only fund a governmental agency for a project, who may in turn use the funds to provide a benefit, such as infrastructure to a single industry. The EDA prefers projects which attract private investments.

 

Can other Federal Grants be used as match for EDA grants?  

With a few special exceptions, federal money cannot be matched with other federal money, nor can state money for a project be matched with state money. Federal grant funds can be matched with State grant funds, as long as the State grant is not a “pass through” of Federal funds. The most notable exception to this rule is that the EDA can accept HUD CDBG funds as a match for certain projects.

 

Are all CUPPAD projects funded by the EDA?

No.  CUPPAD operates via contractual agreements with Federal, State, and Local Units of Government. Only a small portion of CUPPAD funding comes from the EDA. Most of CUPPAD funding for projects, such as master plans, special studies, mapping, and transportation studies are the result of contracts for services between CUPPAD and the government entity that needs the service.

 

Does a Unit of Government have to be a member to obtain CUPPAD services?

No. Member units of government receive a set amount of service as part of their dues, (Up to 25 hours for counties, up to ten hours for cities, villages and townships, and a reduced contractual cost for all members, a 25% discount for services),  while a non member pays a higher contractual amount and does not receive the discounts.

 

Can entities other than units of government be CUPPAD members?

CUPPAD membership is open to all local general purpose governments and to all major public and private interests within the region. Commission membership is as defined by the EDA.

 

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