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In analyzing this information, staff drew the following conclusions: <br /> <br />Reducing the grant maximum has not encouraged more communities to <br />apply. <br /> <br />Reducing the grant maximum has only slightly increased the number of <br />grants made (4 to 5). <br /> <br />Reducing the grant maximum has forced communities to provide more <br />local funds in order to accomplish a project (54 percent local match <br />in FY '81 vs. 36 percent local match in FY '80). Shakopee had to <br />withdraw its application as it did not have $80,000 needed to acquire <br />a $130,000 parcel on O'Dowd Lake. <br /> <br />The fact that communities have to provide a greater share of project <br />costs negates the increased number of grants awarded. <br /> <br />One could speculate that communities are not even applying for grants <br />as they cannot afford the increased local share. (Drop in <br />applications from 13 to 9.) <br /> <br />Based on these conclusions, staff recommends that the grant maximum for <br />Freestanding Growth Centers be raised to $100,000. <br /> <br />E. Exceeding Grant Maximum <br /> <br />For FY '81, the Council recommended: <br /> <br />"In any planning area, the grant maximum may be doubled if all <br />qualified projects in that area are funded prior to redistribution of <br />unused funds to other planning areas." <br /> <br />and <br /> <br />"That recognizing the need for flexibility in administering the <br />grants, State Planning Agency has the discretion of awarding <br />approximatley ten percent in excess of the grant maximum and that the <br />State Planning Agency report annually to the Commission as to the <br />impact of the grant maximum and limitations and exceptions noted." <br /> <br />The first policy was not used since there were more applications than <br />available funds. It is unlikely that there will be a year when grant funds <br />will exceed applications. However, should such a situation arise, this is <br />an appropriate way of distributing excess funds. The 10 percent discretion <br />SPA has is also an appropriate poiicy. Both recommendations should be <br />applied in FY '82. SPA will comment on this issue at the January ~9 <br />meeting. <br /> <br />F. Number of Grants Per Community <br /> <br />In FY '8~, the Council reeommended: <br /> <br />- No limit on grants to communities in the Fully Developed Area. <br /> <br /> <br />