We recently posted an overview about KOZs (Keystone Opportunity Zone), which is a program that encourages investment and economic development throughout the state. The RACP grant is another state program with a similar goal. The Redevelopment Assistance Capital Program (RACP) is administered by the Office of the Budget. The program was established in the 1980s and offers grants for the acquisition and construction of regional economic, cultural, civil, recreational and historical improvement projects. RACP grant qualifications require that the project have a regional impact, generates substantial increases, or maintains current levels of employment, tax revenue or other measures of economic activity.
In order for a project to be eligible, it must be included on at least one of the PA Capital Budget Project Itemization Acts and have remaining “Project Allocation” dollars. Projects are added to the Capital Budget Project Itemization Bills by members of the House of Representatives, Senate and Administration. Additionally, RACP projects cannot obtain primary funding under any other state program and the minimum project cost is $1 million. Additionally, the project owner must at least match the amount of the grant.
Related: What does KOZ Stand For?
Once a project is “shovel ready,” the project sponsor must submit a Business Plan Application to the Office of the Budget. The business plan will include the scope of work, project costs, documentation of other financing, construction schedule and any other relevant project information. All applications are reviewed by a multi-agency committee. Awards are made twice a year, in April and October. Projects in the following sectors are given priority by the selection committee:
- Biotechnology/Pharmaceutical/Life Sciences
- High Tech & Advanced Manufacturing
- Energy Extraction & Mining
- Business & Financial Services
- Healthcare & Medical Research
The RACP grants works on a reimbursement basis, as expenses are incurred and paid for by the project owner. In the City of Philadelphia, there is an administrative fee equal to one percent of the grant amount which goes to the Philadelphia Authority for Industrial Development (PAID).
Notable 2014 RACP Grant Awarded Projects:
Innovation Neighborhood Development- Drexel University (Schuylkill Yards)
FMC Tower at Cira Centre South
Comcast Innovation & Technology Center
Temple Heart & Vascular Center at Temple University Hospital- Phase II
JFK Plaza Improvements
Redevelopment of the Gallery at Market East (Phase II)
Core Project- Philadelphia Museum of Art
For more information on RACP, click here.
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