Business Ready Community - Revenue Recapture

for BRC Projects

Revenue generated by the applicant or a private developer through publicly funded infrastructure projects must be recaptured by the applicant at a rate negotiated between the applicant and other partners and commensurate with the public investment. A revenue recapture plan must be designed demonstrating how the recaptured funds will be managed and utilized for the purpose of economic development. The viability and thoroughness of the recapture plan for revenue generating projects will anticipate revenue streams and prioritize economic development initiatives to be paid for with the revenue while allowing the community flexibility to respond to opportunities.

The intent of the revenue recapture plan is to ensure that the BRC funding allocated to a project will continue to remain in the community fostering community and economic development activities. The following are some examples of eligible uses for recaptured funds: revolving loan fund, façade improvements, downtown development, beautification, marketing, matching funds for future grants, public infrastructure improvements encouraging economic development, trainings and seminars, and economic development studies and plans. Up to 50% of revenue recaptured funds can be used for operational expenses. If revenue recaptured funds are used for operational expenses, they must have a 100% cash match from local economic development investments.

The Revenue Recapture Plan must:

  • Identify project revenue streams as a result of the project and state the amount of revenue anticipated to be recaptured
  • Discuss how the recaptured funds will be managed
  • State specifically how the recaptured funds will be utilized
  • State goals and objectives that are consistent with existing community and economic development plans
  • Identify any additional funding and partnerships that are involved