City of Tecumseh s1

Downtown Working Capital and Building Improvement Revolving Loan Fund Program

Guidelines

Program Statement

The intent of the Downtown Working Capital and Building Improvement Revolving Loan Fund Program (Downtown Working Capital Loan Program in short) is to provide low interest loans to building, property and business owners in the Principal Shopping Center District in downtown Mt. Pleasant for physical improvements to the buildings, properties, and businesses which will help strengthen the economic viability.

Downtowns are important to the economic health of a community and downtown Mt. Pleasant is no exception. The appearance of the buildings and properties, both individually and as a whole, along with the strength of both the retail and service businesses are important to the impression people have of the entire Mt. Pleasant and Isabella County area. The City of Mt. Pleasant is the county seat for Isabella County. The downtown is the focal point and it is important to maintain its health, as a healthy downtown encourages potential businesses to locate in the downtown and the Mt. Pleasant area.

Purposes of the Program 1. To directly stimulate design improvements to downtown buildings, properties, and businesses. 2. To stimulate building improvements sensitive to the unique context of the downtown's historic commercial architectural character. 3. To stimulate physical improvements to businesses to make them attractive to Mt. Pleasant’s consumer market. 4 To strengthen existing, and encourage new businesses that coordinate with a balanced retail strategy and bring new employment opportunities to the downtown. 5. To encourage renovation and use of upper stories of downtown commercial buildings for housing and office uses. Note: revolving loan funds cannot be used to convert upper stores to residential uses. 6. To work closely with the lending institutions and the City to provide an attractive incentive package to downtown commercial owners.

I. Program Description 1. Participating lending institutions include any local bank, credit union or savings and loan association. 2. The program will run on an annual renewal in coordination with each institution's fiscal year. 3. The interest rate will be 2% per year. 4. The term of each applicant’s loan will be determined by the financial institution handling that particular loan and the Revolving Loan Fund Board; however, this maximum term shall not exceed 5 years. 5. The program will be administered by a Project Review Committee comprised of the Revolving Loan Fund Board and the City Manager.

of 4 II. Standards for Loan Decisions 1. Applicant loan projects must be located within the boundaries of the Principal Shopping Center district in downtown Mt. Pleasant (see attached map). 2. Loans will not be considered for single family detached housing. 3. All proposed improvements are to be approved by the Project Review Committee (identified above). Applicants who deviate from the approved application may be disqualified from this program. 4. All building and property improvements must meet City building code requirements. 5. Improvements to those buildings and businesses within the Downtown Historic District* will be asked to meet the minimum Standards for Rehabilitation of the National Trust for Historic Preservation. See attached map* and synopsis of the standards. The full listing of standards are available at the City Planning Office at 320 W. Broadway. * As of April 2004, a Downtown Historic District has not been established. 6. Improvements to those buildings not within the Downtown Historic District should, to the degree possible, meet the minimum Standards for Rehabilitation of the National Trust for Historic Preservation. 7. Maximum loan amounts will be determined on a case by case basis. Determination will be made by the Project Review Committee and the involved lending institution. 8. Building owners within the geographic boundaries of the CBD-TIFA area are eligible to apply for participation in this program. 9. Examples of improvement priorities are as follows:

a. Eligible improvements include, but are not limited to, the following:

Exterior Professional design assistance Masonry work Appropriate cleaning Handicap access Painting Entrance ways Window repair Façade restoration

Interior Structural repairs and restorations Design assistance Painting Handicap access

b. The following improvements will be considered on an individual basis if these improvements are vital to the existence of that business:

Exterior Roof repairs Energy conservation

of 4 Signs Secondary entrances

Interior Plumbing Energy conservation Electrical work Property landscape design assistance Stationary fixtures Landscaping Decorative items such as floor, wall and Sidewalks window treatments Driveways and entrances Display units Curb cuts Heating and air conditioning

III. Loan Policy In addition to the guidelines and standards stated above, the Project Review Committee shall evaluate loan proposals with the following policies in mind: 1. Program Impact: The loan program boundaries include a substantial number of buildings and it is recognized that improvements to one structure may not have as great an impact on the downtown as improvements to another. Considering that the total program amount may be limited, it is the intent of this program to provide the downtown with the greatest impact possible consistent with the program's statement. Therefore, the Project Review Committee reserves the right to reject any application for a building or property which, in the committee's evaluation, is in such a state of deterioration that the proposed loan could not be recovered during its term, or the proposed investment is at best a stop-gap measure against imminent demolition. 2. Equal Opportunity: In no event shall the Project Review Committee, or any financial institution involved in this program, use race, gender, age or religion as grounds for refusing a loan to an eligible applicant.

IV. Program Implementation

1. Marketing: The CBD-TIFA will inform and educate building owners, tenants, property owners, and the community as to the availability and benefits of the program. This marketing effort will include media advertisements, a brochure, and meetings with groups and individuals as necessary.

2. Application Process: a. Applications for the program will be available at the Downtown Development office, 320 W. Broadway, Mt. Pleasant, Michigan 48858.

of 4 b. The application form will contain all items necessary for Project Review Committee's consideration, including an application process checklist and a statement requiring sound bids which meet building and fire code requirements, as well as a listing of those items that will be required by participating financial institutions. c. The Project Review Committee will meet as needed to review applications, unless determined otherwise by the committee. d. The Project Review Committee will review applications only after all necessary information has been submitted. e. If approved, the Project Review Committee will forward the application to the lending institution of the applicant's choice. f. If rejected, the Project Review Committee will explain by letter to the applicant, the reasons for rejection and what, if any steps can be taken to receive approval. g. The reviewing financial institution will approve or reject the application according to its established credit practice. h. If the application is rejected by the reviewing financial institution, applicant has the option of applying to any other participating financial institutions. i. Each applicant will have 30 days from the date of Project Review Committee approval to receive approval by a participating financial institution. This time limit may be extended by the Project Review Committee upon the request of an applicant experiencing special circumstances, according to the Committee's evaluation.

3. Post Application Procedure: a. The Building Inspector shall be responsible for assuring that any work done on an approved project is consistent with the application and design as approved. b. Any changes in work must be approved by the Project Review Committee. c. All approved changes in work specifications shall be attached to the original application in the form of an addendum, dated, and signed by the Project Committee Chairperson. d. The Building Inspector will conduct periodic scheduled inspections to ensure compliance with technical specifications. e. The applicant and the Building Inspector will conduct a final inspection before the final payment shall be made to the contractor(s). f. Deviations from an approved plan may disqualify the applicant from this loan program. Such deviation may cause one or both of the following: 1) The total loan being subject to market interest rates. 2) The remaining disbursements will cease.

V. Program Amendments

Details of the Low Interest Loan Program may be amended by a unanimous vote of the Project Review Committee with the written consent of each of the participating financial institutions.