§ 176. Erie/Barge canal challenge grant program. 1. There is hereby
established within the department an Erie/Barge canal challenge grant
program to be administered in coordination with the department of
transportation for the purpose of providing municipalities adjacent to
the Erie/Barge canal with matching funds to plan and carry out
canal-related tourism activities; provided, however, that:

(a) no grant to any municipality shall exceed the sum of twenty
thousand dollars or forty percent of the total project cost, whichever
is less;

(b) each applicant, whether a single municipality or two or more
municipalities acting jointly, shall be eligible to receive only one
such grant in any twelve-month period;

(c) no part of any such grant shall be used for salaries or for
services regularly provided by the municipality or for administrative
costs in connection with this grant;

(d) the municipality or a designated nonprofit entity has committed
sufficient funds to fulfill the local match requirements of this
program;

(e) in-kind services shall not be considered part of the local match
requirement; and

(f) no grant shall be used for the direct benefit of a for-profit
business unless (i) the funded activity shall further a public purpose
and have a clear, long-term benefit to the applicant and (ii) such
funded activity is not available to the business from other public or
private sources.

2. Applicants for grants may be a municipality or two or more
municipalities acting jointly. A municipality, or two or more
municipalities acting jointly, may designate by resolution a county or a
nonprofit entity to act on its behalf.

3. The commissioner shall establish and publish, on an annual basis,
guidelines and a standard application form relative to the use of funds
to be granted hereunder. In addition to such other information as shall
be requested by the commissioner, applicants shall provide a description
of:

(a) the activity or project for which a grant is requested and how it
relates to the canal;

(b) how the proposed activity or project will contribute to or enhance
tourism development along the canal;

(c) project impact including, where appropriate, an estimate of the
number of people to be served by the project, the length of time
visitors may be expected to spend in the area, the ratio between local
residents and visitors to be served by the project, the duration of the
project; and

(d) whether it is part of an overall tourism marketing or development
plan.

4. In reviewing and selecting applicants to receive grants under this
program, the commissioner shall consider, in coordination with the
department of transportation, the following:

(a) the nature and extent of economic distress within the applicant
community and the need for assistance. Preference will be given to
municipalities which meet the criteria for economic distress as
established by the department;

(b) the potential of the proposed canal-related activity to make a
significant and permanent contribution to tourism development within the
applicant municipality and along the canal as a whole;

(c) the existence of a local tourism marketing or development plan to
enhance tourism activity, and the extent to which the proposed activity
is consistent with the plan;

(d) the nature and extent of local support for the proposed
canal-related activity including the commitment of additional financial
resources;

(e) the degree of support within the municipality for tourism
development, in general, and the nature and extent of other canal
related activities, in particular, engaged in by the municipality or its
designated nonprofit entity, business community and community
organizations;

(f) preference shall be given to those applications submitted by two
or more municipalities; and

(g) preference shall be given to applications creating new tourism
activities.

5. Grants shall be awarded by September fifteenth of each year.