HR LOAN GRANT
e
MEMO TO : HOPt INS CITY COUNCIL
FROM HOPt INS MAIN STREET
I e....'l n l.od e
DATE : 1I:'l/8~
51 )RJ ECT : COMMERC I AL FiEHAB LOAN PROGR{~M POL I C ,I
The Hop~lns Mdln Street organl=atlon would ll~e to propose
an addItIon to the publIc polIcy gUldlng the use of the
CommercIal rehi:\b loan program. The !?;~lstlng proe;Jram
reguldtlons specify that the city will finance half the cost
of approved permanent Improvements. We propose that under
certaln circumstances the city should consider providing a
loan for more than 50% of the total permanent cost of a
project.
IntroductIon of thiS pOJlCY would strengthen the loan
program"s effectlveness as R tool to encourage quality
development and prlvale Investment for the benefit of
downtown and the communIty at l~rge.
SpeCIfically we propose the following:
The Hop~lns CIty CounCil shall conSider on a case by
case bas]s grantIng a loan under the Commercial Rehab
Loan Program of more than 50% of the total permanent
costs under the following conditions.
I.The proposed proj!?ct must Include substantial publlC
beneflt.
:2 n An arlaJ ',/51 s of the tR)~ 1 ncr-emeflt generRted by the
proposed project must 1ndlcate that suffiCIent funds
w111 be ~enerated to cover the total publlc subS1dy
1 ncurr ed by ITldl 1 nq thE' loan.
~
.
:'.Addlt1onal pr1vRte 1nvestment wlII be spawned by the
1mplementdt1on of the proposed project.
4.The project must demonstrate the hlgest standards of
the Malnstreet Deslgn qU1de11nes and be conslstant with
the downtown development goals.
5.1n addlt10n to the standRrd loan program forms and
legal documents. a separate deveJopment Rqreement
between the city and the loan applicant shall be
drafted to cover dny and all conditIons which the
applicant must meet for approval of theIr loan.