In Berkshire County Sarah C. Hoecker

Economic Development Districts What is an Economic Development District? An EDD is a geographic location created and governed by a “District Organization” to strengthen the region through economic development efforts. The “District Organization” is a federally designated organization charged with the economic maintenance of the region and the implementation of the CEDS plan.

13 CFR – Regional Eligibility Criteria 1. The region must contain at least one (1) geographic area that meets the distress criteria and identified as such in an approved CEDS. 2. The region must contain sufficient resources and population to foster economic development on a scale which involves more than one (1) geographic area subject to distress criteria. 3. Has an EDA-approved CEDS.

13 CFR – Regional Eligibility Criteria 4. The “District Organization” must obtain commitments, support, and endorsement from a majority of the areas within the proposed region. At least 51% of municipalities must support the District formation and its proposed activities. 5. Obtain concurrence with the state in which the District will be located.

13 CFR – Formation Requirements A “District Organization” is an entity that satisfies the formation and organizational requirements as set forth in 13 CFR Ch (b)(c) and must be organized as one of the following: A public organization formed through an inter-governmental agreement A public organization established under State-enabling legislation for area-wide planning (BRPC) A non-profit organization incorporated under State guidelines.

13 CFR – Organizational Requirements Board Composition – for the “District Organization” must meet these requirements: One (1) Private Sector Representative One (1) or More of the following; Executive Directors of Chamber of Commerce, or representatives of post-secondary education, workforce development groups or labor groups, all of which must comprise a minimum of thirty-five (35%) of the District Organizations governing body. At least a simple majority of its membership who are elected officials of State, local, or Indian Tribal government who have been appointed.

13 CFR – Organizational Requirements (cont.) The governing body of the District Organization must provide access for persons who are not members to make their views known concerning ongoing and proposed District activities in accordance with the following requirements: The District Organization Must hold open public meetings at least once a year, and must post the date & agenda of such meetings with sufficient advance notice to allow time for the public to prepare and participate effectively Shall adopt a system of procedures to assure board members & others have an effective opportunity to participate in the affairs of the District

13 CFR – Organizational Requirements (cont.) Shall provide information to the public in advance of decisions so they may have the opportunity to review proposals. Technical material should be relayed to the public so they may understand the impact of public programs, available options, and alternative decisions. Must make available audited statements, annual budgets, and minutes of public meetings as reasonably requested. Its board of directors must comply with all Federal and State financial assistance reporting requirements and the conflict of interest provisions set forth in 13 CFR Ch

13 CFR – Organizational Requirements (cont.) The District Organization must be assisted by professional staff drawn from qualified persons in economic development, planning, business development, or related disciplines.

13 CFR – District Operations The “District Organization” shall engage in a full range of economic development activities listed in its EDA-approved CEDS. These activities include: Coordinating and implementing economic development activities in the District. Carrying out economic development research, planning, implementation and advisory function identified in the CEDS Coordinating the development and implementation of the CEDS with other local, State, Federal, and private organizations The District Organization may contract out for services to accomplish the activities listed above.

PROS & CONS Fairly non-restrictive funding for use for economic development planning. EDA funding requires a 1:1 non- federal match. Advantageous position for applying for EDA grants by increasing municipal eligibility to apply for EDA funding. EDD Board Governance structure has strict membership guidelines that can be challenging for when fitting an EDD into an existing organization's governance structure. Federal law authorizes states to establish EDDs, but does not cover the administrative cost of doing so.

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