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Program Guidelines

The Nechako-Kitamaat Development Fund (NKDF) Society’s funding programs are designed:

To support sustainable economic activity in northern communities affected by the Kitimat-Kemano project and by the creation of the Nechako Reservoir. NKDF spends the income from its long-term investments on programs and projects that meet each community’s economic development goals.

Background of the Fund

In 1997, as part of a resolution of legal issues surrounding the cancellation of the Kemano Completion Project in northwestern British Columbia, the government of British Columbia and Alcan Inc. each contributed $7.5 million to create the BC-Alcan Northern Development Fund. The BC-Alcan Northern Development Fund Act was passed in 1998.

Following advice from a regional advisory board, the NKDF Society was incorporated on August 18, 1999. The Minister of Jobs, Innovation and Skills Development appoints Board members to represent the communities of the Nechako-Kitamaat area.

Who can apply to the Fund?

The investment area for the NKDF is normally limited to those areas with evidence of impacts from Rio Tinto Alcan’s Nechako Reservoir and Kemano power project. We encourage applications from local governments and legally incorporated non-profit organizations serving the following communities and nearby rural areas:

• Kitamaat Village
• Southside
• Nee Tahi Buhn Band
• Cheslatta Carrier Nation
• Skin Tyee Band
• Village of Burns Lake
• Burns Lake Band
• Lake Babine Nation
• Stellat'en First Nation
• Village of Fraser Lake
• Nadleh Whut’en Band
• Fort Fraser
• District of Vanderhoof
• Saik’uz First Nation

Nechako-Kitamaat Development Fund Society Guiding Principles

COMMUNITY ECONOMIC DEVELOPMENT	The Fund will invest in community economic development projects and/or programs that are supported by the community, as long as they do not subsidize private business.
JOB CREATION & ENHANCEMENT	Creating new jobs and enhancing existing jobs are priorities of the Fund.
SUSTAINABLE EMPLOYMENT	A priority of the Fund will be to support long term employment - both full time and seasonal.
COMMUNITY INTERRELATIONSHIPS	The Fund recognizes the value of interrelationships between communities.  Consideration will be given to proposals from within the Nechako Region and Kitamaat Village if they demonstrate a benefit to those areas.
CLEAR AND ACCESSIBLE	NKDF will have policies and programs that are accessible with clearly defined evaluation criteria.
FIRST NATIONS’ PARTICIPATION	First Nations’ participation in the Fund will not prejudice the First Nation land claim process.
LOCAL CONTROL	The majority of NKDF Directors will reside in the investment area.  The Board will determine the ongoing management of the Fund consistent with provincial government policy.
BENEFITTING FUND	The Fund is intended to create benefits through sustainable community economic development. It is not intended to be compensation for those who believe themselves to have been negatively affected by the Kitimat-Kemano Project, the creation of the Nechako Reservoir or the cancellation of the Kemano Completion Project.
COOPERATIVE VENTURES	The Fund can be utilized in cooperative ventures along with other funding sources.
NO DUPLICATION	The Fund will not duplicate but may augment existing economic development programs.

Of the original $15 million placed into the Northern Development Fund, $5 million was provided to NKDF to be used as a working fund to invest in grant programs. The remaining $10 million of the original $15 million was placed into a legacy fund with the goal of investing and growing the fund to $15 million, and the income from the legacy fund is to be used to finance NKDF grant programs into the future.

Fund investments are managed by the provincial government, through the Office of the Chief Investment Officer. Monies of the Northern Development Fund—to be used in support of the programs of the NKDF Society—are in investment vehicles which are generally conservative but which also provide some opportunities for growth.

NKDF Criteria for Economic Development Grants

The grant program supports projects that address one or more of the following key aspects of economic development in the NKDF investment area:

• Infrastructure: the public facilities, equipment or installations needed to support business, jobs, community stability and quality of life, including items that enhance the quality of life and develop communities’ ability to attract and retain residents and businesses. Examples: lighting, water, sewer, transportation, telecommunications, recreation facilities and beautification.
• Planning and research: the background information a region or industry sector requires for making sound decisions about future investments. Examples: product testing, market research, needs assessments, surveys and strategic planning.
• Human development: the skills training that enable people and organizations to increase employment and economic activity. Examples: workshops and courses.
• Promotion and brokering: the process of building new organizations, partnerships and markets. Examples: marketing plans and joint ventures.

Priority will be given to projects that:

• Fit in the context of long-term community economic development plans.
• Enable a community to acquire public or private investment.
• Lead to long-term jobs in the region.
• Promote economic activity and remove constraints from the business sector in the investment area, without subsidizing any individual business.
• Have community buy-in, demonstrated by support letters and donations from local government and other organizations within the local community.
• Have benefits continuing after the funding is invested and the project complete.

Costs eligible for NKDF funding

The fund will not normally cover more than 50% of project costs. In-kind donations are acceptable at market rates and must be verifiable and documented by written commitments from donors. Grants can be used towards:

• Contracted goods and services.
• Capital costs, materials and supplies, excluding the costs of land.
• Incremental labour (wages plus employer costs) and related costs such as supervision, travel, training and skill development.
• Rent or lease of facilities and equipment dedicated to the project.
• Specific administrative costs to a maximum of 10% of grant request.

Note: Incremental costs are those expended toward completion of a project, but which would not occur if the project didn't exist.

Ineligible projects and costs

• Grants cannot be used to subsidize business or compete with private enterprise.
• Grants cannot be used to pay wages of employees doing their regular jobs.
• Grants will not be approved if funding is normally available from other sources.
• Sponsorships.
• Grants cannot be used to pay GST.
• Grants cannot be used to pay for any costs incurred prior to a project’s start date.

Note: Ineligible costs cannot be used to leverage NKDF funds.

Grant Applications Review and Assessment Process

The NKDF Society is governed by a volunteer board made up of members who live within the investment area, and who are appointed by the Minister of Jobs, Tourism and Skills Training. It is the board’s responsibility to make decisions about grants. The Manager or Board may ask outside experts for advice. The Board evaluates the program guidelines annually and makes improvements as needed. We welcome your feedback - please relay any comments you have about the program to the Society’s Manager.

Step 1: Phone or e-mail the manager to verify the eligibility of your project and to confirm the next deadline for the submission of proposals.

Step 2: Prepare the proposal using the outline provided in these Community Grant Proposal Outline below, or the template provided at the Proposal Forms page. If needed, ask the manager for assistance.

Step 3: Send your proposal to the Society electronically if possible, or by Canada Post or Greyhound. Please do not use couriers and do not bind the proposals. The Manager will review your application and ask for additional information until it is complete. Once your proposal is complete, the Manager will include it in the package for the next board meeting. The Manager will email or call to let you know when your application has been received. If you don’t get a “received” message within an appropriate amount of time after submitting your application, please follow up with the Manager to ensure the Society has received it.

Step 4: The board assesses each application against the following criteria:

• Consistency with the Society's priorities (listed under "NKDF Criteria") and completeness (see outline and checklist below);
• Economic and social benefits to the identified community(s) in proportion to the size of the request;
• Clearly identified contributing funds / partners / personal;
• Clearly thought out work plan, timelines and evaluation framework;
• Experience and capability of the applicant to undertake the project; and
• Clear and realistic strategies for project management.

Once the board reaches a decision:

The Society Manager will send a letter informing applicants of the decision within five working days. If approved, the project must be under contract within 6 months and activity must be started within 12 months or the offer is void. The Manager will discuss conditions of funding with the applicant and will provide a contribution agreement to be signed by both parties. This will include a timetable for grant payments and progress reports, methods for publicly recognizing the Society for the grant and methods for evaluating the project. Any organization that receives a grant from NKDF can expect a site visit or a meeting to monitor and assess the project.

Deadlines:

There are up to four deadlines per year. Please visit Proposal Deadlines for specific dates. If proposals arrive early, the Manager may assist with revisions. If they arrive late, they will not be reviewed until the following meeting.