Commercial Façade Loan Program
The
Commercial Façade Program is essential to the Economic Development
Department’s overall mission to assist in the prevention and
elimination of slums and blight and to encourage the revitalization and
eliminate the deterioration of commercial and industrial centers within
the Town’s urban core “Central Business Districts.”
Application
Fee: $100.00 (non-refundable)
Application
Period: Open
Interest
Rate: 0% (principal only payments)
Amount
of Financing:
Up to 50% of eligible projects, generally not to exceed
$10,000. Minimum loan is
$2,500
Commitment Fee:
One percent (1%) of the approved loan amount
Borrower:
Commercial property owners (where at least 51%
of the building is used for commercial purposes only). No applicant that has defaulted on a previous Local
Development Corporation loan will be eligible to apply
Eligible Areas:
Central Business District (CBD) areas of the Town of Union,
including the Villages of Endicott and Johnson City (see Town
of Union Economic Development Map for eligible areas)
Eligible
Use of Proceeds:
Design elements that are a structural part of the
commercial building (i.e. window & door replacement, exterior
refinishing, and other design elements at the discretion of the LDC
Board)
Ineligible
Use of Proceeds:
General maintenance items will not be allowed for existing
commercial property owners and may be allowed for new property owners at
the discretion of the LDC Board (i.e. painting, roof repairs/replacement,
etc..). New construction.
Ineligible
Users:
Commercial property owners applying for façade funding to lease
to a tenant engaged in one or more of the following industries sectors
will not be eligible; Not-for-profit organizations, Recreation
facilities not open to the public; Adult entertainment operations,
Gambling facilities; Day care centers, if not licensed by the state,
Residential housing, if it’s determined that the residential component
of the project will be occupying more than 49% of the buildings overall
usable square footage, in addition to other industry sectors that may
not be listed above
Amount
of Participation:
At least 50% of the project cost is funded privately,
either through a private lender, another public lender and owner equity (a
minimum of 10% owners cash equity is required)
Term of
the loan:
Not to exceed a term of five (5) years
Collateral:
First mortgage or subordinate mortgage to a bank. An appraisal may be required on property taken as collateral.
Appraisal values must be greater than the loan financing on the
property, and can not exceed the program loan-to-value ratio, other
collateral may be accepted at the discretion of the LDC Board
Guarantees:
Personal guarantees of property owners. Corporate guarantees (if applicable)
Federal Labor Standards Provision:
- Commercial façade projects will not be subject to
Federal Labor Standards Provisions
Other
Criteria:
- Demonstrated ability to repay debt
- Demonstrated commitment by the commercial property owner
(s)
- Firm project and project cost
- If project is located in a local, state and/or national
historic preservation area design elements must have all necessary
approval(s)
- Project must meet all applicable zoning and code
regulations
- The commercial property owner will be required to obtain
and comply with all applicable federal, state, and local government
regulations, approvals, and permits required by law to be obtained in
carrying out the work set forth plans and specifications
- All obligations of the property owner to the Town of Union
LDC, Town of Union, Village of Endicott, Village of Johnson City or
Broome County must be current, including but not limited to any and all
loan payments as well as real estate, school, water and sewer taxes on
all properties owned in the Town of Union.
- In the event that the building is sold or title is
transferred, the unpaid balance of the loan will become due and payable
Job
Creation and Retention: None
Job Cost Ratio: None
