MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Tourism
By: Senator(s) McCaughn
AN ACT TO BRING FORWARD SECTIONS 57-78-1, 57-78-3, 57-78-5, 57-1-601 AND 57-123-11, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-78-1, Mississippi Code of 1972, is brought forward as follows:
57-78-1. This act shall be known and may be cited as the "Mississippi Main Street Revitalization Grant Program Act."
SECTION 2. Section 57-78-3, Mississippi Code of 1972, is brought forward as follows:
57-78-3. The Mississippi Main Street Revitalization Grant Program Act will authorize the Legislature, as well as the Mississippi Development Authority through appropriations by the Legislature, to make grants available to selected Main Street Designated Community programs for projects leading to the
revitalization of Mississippi's downtowns.
SECTION 3. Section 57-78-5, Mississippi Code of 1972, is brought forward as follows:
57-78-5. (1) For the purposes of this section:
(a) "Eligible recipient" means a Main Street Designated Community that is a good-standing member of the MMSA, has obtained Section 501(c)(3) tax-exempt status or Section 501(c)(6) tax-exempt status from the Internal Revenue Service and possesses matching funds to match twenty percent (20%) of the total project cost. A Main Street Designated Community will be ineligible for a grant under this section, if their community was a recipient of a grant under this section in the previous year.
(b) "Main Street Designated Community" means a local Main Street program that has achieved and maintained Designated Community status by the MMSA.
(c) "Matching funds" means cash funds that are either in the applicant's possession or proposed by a match partner and clearly identified in a support letter and are reserved for the proposed project. No state funds may be included in determining the amount of the match.
(d) "MMSA" means the Mississippi Main Street Association.
(2) The MMSA shall accept applications from eligible recipients, prioritize their applications and submit a list of suggested recipients to the Legislature no later than December of each year. Beginning with the 2024 Regular Session of the Legislature, and each Regular Session thereafter, the Legislature shall review the submitted list and determine the projects for which to award grants to eligible recipients through the Mississippi Development Authority in an appropriation bill. The MMSA will consider projects in relation to the following criteria:
(a) The demonstration of local financial need;
(b) Projects that demonstrate high local impact;
(c) Projects that produce a high level of public benefit;
(d) Projects that demonstrate best practices in
preservation;
(e) Projects that will have local administration and implementation capacity;
(f) The distribution of geographic size and location of the project;
(g) Projects that will be completed on time; and
(h) Whether the community in which the project is located has not received funding under this section for the previous year.
(3) The Mississippi Development Authority shall provide grant funds to the Main Street Designated Communities under this section on a reimbursement basis, not to exceed Five Hundred Thousand Dollars ($500,000.00) per community each year, and grantees shall not receive compensation for their required twenty percent (20%) local match. Main Street Designated Communities with a population of less than ten thousand (10,000), shall be required to have a local cash match of ten percent (10%) for the first One Hundred Thousand Dollars ($100,000.00) requested, then will be required to have a local cash match of twenty percent (20%) for any amount over One Hundred Thousand Dollars ($100,000.00).
(4) Eligible costs for the expenditure of grant funds include the acquisition of land and any improvements thereon, preservation of historic downtown structures and sites, and initiatives that will produce a revitalization to the economy of the historic downtown areas.
(5) Grants may be awarded for prospective purchases or for acquisitions of which the applicant has closed. In the latter
case, the applicant shall demonstrate:
(a) The closing occurred no more than twelve (12) months prior to the date of application for the grant; and
(b) The subject purchase was made to help preserve and revitalize the location and economy of a historic downtown community.
(6) Any eligible organization making an acquisition of downtown property or interest therein pursuant to this section shall grant to the Mississippi Department of Archives and History or other holder a perpetual easement placing reasonable restrictions on the use or development of the land. In cases where the easement is granted to a holder other than the Mississippi Department of Archives and History, all terms and conditions of the easement shall be reviewed by and found by the Mississippi Department of Archives and History to accomplish the perpetual preservation of the historic downtown property. Such other holder shall demonstrate to the department that it has the capacity and expertise to manage and enforce the terms of the easement.
(7) Grantees must adhere to Mississippi state procedures and guidelines relating to the implementation and financing of the approved project. Grantees must also submit any and all audit and financial statements as required by the State of Mississippi.
(8) Nothing in this section shall preclude the subsequent transfer or assignment by a state agency or other owner or holder of any property interest acquired pursuant to this section to the State of Mississippi, the county, city, town or municipality in which the land is located, for the purpose of further preserving, improving or maintaining the downtown property. The Mississippi Development Authority shall facilitate transfers and assignments of any such interests held by the department.
(9) There is created in the State Treasury a special fund to be known as the "Mississippi Main Street Revitalization Grant Program Fund," which shall consist of funds made available by the Legislature in any manner, funds received as grants, endowments or gifts from the federal government, its agencies and instrumentalities, and funds from any other source designated for deposit into such fund. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the Mississippi Development Authority, upon appropriation by the Legislature, for the purposes provided in this section.
(10) The Mississippi Development Authority shall administer the fund and establish guidelines for the expenditure of grant funds and reports relating to the expenditure of grant funds. The department may utilize no more than two percent (2%) of the amount of funds deposited into the Mississippi Main Street Revitalization Grant Fund for administrative expenses in carrying out its duties under this section.
(11) To carry out this act, the Mississippi Development Authority may enter into cooperative agreements with entities in the public and private sectors, including:
(a) Colleges and universities;
(b) Historical societies;
(c) State and local agencies; and
(d) Nonprofit organizations.
(12) To develop cooperative land-use strategies and conduct activities that facilitate the conservation of the historic, cultural, natural and scenic resources, the Mississippi Development Authority may require that recipients seek and secure technical assistance from the MMSA, to the extent that a recipient of technical assistance is engaged in the protection, interpretation or commemoration of historically significant property in the area in and around the historic downtown site. The MMSA will provide administrative support to local Main Street grantees to ensure proper grant administration and project implementation.
SECTION 4. Section 57-1-601, Mississippi Code of 1972, is brought forward as follows:
57-1-601. (1) For the purposes of this section, the following words shall have the following meanings ascribed in this section, unless the context clearly otherwise requires:
(a) "MDA" means the Mississippi Development Authority.
(b) "Municipality" means any municipality with a population of less than fifteen thousand (15,000) according to the latest federal decennial census at the time the municipality submits an application to the MDA under this section.
(c) "Revitalization zone" means an area in the municipality officially designated by ordinance or resolution of the governing authorities of the municipality as a revitalization zone and approved and certified by the MDA as meeting the requirements of this section.
(2) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Main Street Investment Grant Fund" which shall consist of funds from any source designated for deposit into the fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the MDA for the purposes authorized in subsection (3) of this section. In addition, monies remaining in the fund on April 21, 2023, shall be used for such purposes solely to provide grant funds to a municipality that, prior to January 1, 2023, has received and/or been approved to receive grant funds under this section for a revitalization zone project or projects commenced before January 1, 2023.
(b) Monies in the fund which are derived from the proceeds of general obligation bonds or provided by the Legislature may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing grants under this section through the use of proceeds of such general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for the program. Reimbursement of reasonable actual and necessary costs for assistance shall not exceed three percent (3%) of the proceeds of bonds issued for such assistance or the monies provided by the Legislature. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
(3) The MDA shall establish a program to make grants to a municipality to assist with maintaining and improving the viability of revitalization zones. The proceeds of a grant made to a municipality under this section may be used for maintaining and/or improving the viability of a revitalization zone through means deemed appropriate by the governing authorities of a municipality, including, but not limited to, making loans, grants and/or other forms of assistance to any person or public or private association or other entity for use for infrastructure projects, improvements to properties, signage and other purposes related to maintaining and/or improving the viability of the revitalization zone.
(4) (a) If a municipality desires a grant under this section, the municipality shall submit an application to the MDA seeking (i) approval and certification of the proposed revitalization zone and (ii) a grant for the purposes authorized in this section. The application shall include, at a minimum:
1. The name of the proposed revitalization zone, together with the words, "revitalization zone";
2. A description of the revitalization zone by metes and bounds;
3. A map showing the parcels of real property included in the revitalization zone and the present use of such parcels;
4. A master plan for the revitalization zone that has been approved by sixty percent (60%) of the property owners within the zone at the time the municipality submits the application; and
5. Any other information required by the MDA. The governing authorities of a municipality may designate the boundaries of a proposed revitalization zone by adoption of an ordinance or resolution that is spread upon its minutes and describes the boundaries of the zone.
(b) The MDA shall review the application to confirm that the revitalization zone meets the requirements of this section. A revitalization zone may embrace two (2) or more separate parcels of real property, and such property may be publicly and/or privately owned. Each revitalization zone shall be of such size and form as to include all properties that, in the determination of the municipality and the MDA, constitute an integral part of the revitalization zone. If the MDA determines that the boundaries of the proposed revitalization zone exceed the area that is reasonably deemed to be integral to the revitalization zone, the MDA may reduce the boundaries of the proposed area. Upon the approval and selection of a municipal revitalization zone project, the MDA shall certify the revitalization zone.
(c) Notwithstanding any other provision of this section, the MDA shall not accept or approve any application for a grant or grants under this section after April 21, 2023.
(5) The MDA shall have all powers necessary to implement and administer the program established under this section, and the MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(6) This section shall stand repealed on the first day of the next month following the date that all monies in the Mississippi Main Street Investment Grant Fund have been disbursed to provide grant funds to a municipality described in subsection (2) of this section.
SECTION 5. Section 57-123-11, Mississippi Code of 1972, is brought forward as follows:
57-123-11. (1) The Department of Finance and Administration shall establish a program for the purpose of providing funds to Mississippi Main Street Association as provided in this section. Monies disbursed by the Department of Finance and Administration under this section shall be disbursed in compliance with all requirements and/or conditions on funds appropriated from the Coronavirus State Fiscal Recovery Fund for the program established under this section.
(a) For the first round of grants, the Department of Finance and Administration shall disburse funds under this section to Mississippi Main Street Association to be used for the purpose of making revitalization grants to Mississippi communities as follows:
2020 Number of Grant Total
population communities amount grants
More than 25,000 8 $ 125,000.00 $ 1,000,000.00
Not more than 25,000 40 $ 100,000.00 $ 4,000,000.00
Total $ 5,000,000.00
(b) For the second round of grants, the Department of Finance and Administration shall disburse funds under this section to Mississippi Main Street Association to be used for the purpose of making revitalization grants to Mississippi communities as follows:
2020 Number of Grant Total
Population Communities Amount Grants
More than 25,000 8 $ 68,000.00 $ 544,000.00
Not more than 25,000 40 $ 61,400.00 $ 2,456,000.00
Total $ 3,000,000.00
(2) The Department of Finance and Administration shall have all powers necessary for the implementation of this section.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.