Staff Writer
PRESQUE ISLE – The Downtown Revitalization Committee wants local businesses to be aware there is a loan program available to help with property upgrades.
“The city of Presque Isle has established a commercial loan program to assist commercial business and property owners, located in the Central Business District area, who are unable to secure or afford full improvement financing through conventional lending avenues,” Ken Arndt, the city’s planning and development director, told members of the DRC during their weekly meeting July 31.
Arndt said the loan program is designed to provide funds for façade upgrades.
“It’s a 50/50 matching funds program for both building owners and building occupants,” said Arndt, noting some sort of agreement between tenant and property owner would be required in support of the application.
Members of the DRC and Arndt are looking for ideas on how to get businesses to participate.
“We really want to make it work. We haven’t had a specific workshop; perhaps that’s an idea,” said Arndt.
Presque Isle also has funds available through the Presque Isle Development Fund that could be used to supplement the program, provided an applicant is approved, said Arndt.
Kristen Cady, director of the Main Street Maine Program, was in town for the meeting and added her own input to the discussion.
“I recommend business owners present renderings of the facades,” said Cady, in reference to the improvements the money would be used for.
With an interest rate of 5 percent per annum, fixed for a period of five to seven years, terms are quite reasonable, given today’s economy, according to Arndt. Improvements will focus on safety and aesthetics.
“The Downtown Revitalization commercial loan funds will be targeted toward items in the general categories of public safety (Life Safety Code) and façade improvements, items traditionally left unresolved due to difficulties in justifying the payback, but which, if left unresolved, erode the tax base and become a hazard. Commercial business owners unable to secure full financing through the banks or other financing institutions will qualify for this program,” said Arndt.
Lighting, crumbling or broken siding are some possible examples of ways the money could be used for improvements.
The city will cap its participation in any single project at 50 percent of the total project cost or $25,000, whichever is the lesser amount.
Certain criteria must be met in order to qualify.
“Proposed improvements must require a minimum city participation of $5,000, all outstanding property taxes must be paid in full at time of closing, and the borrower must provide suitable proof of building ownership or documentation of owner’s permission to modify the building, among other requirements,” explained Arndt.
Meeting participants discussed the importance of getting the word out that these funds exist.
“We need to get a spark in these people’s minds. They need to feel successful in what they’re doing,” said Ted Roberts, an adviser to the DRC.
“We need to develop a form of public education – get the word out that the loan project is much more confidential than it began. It started as PIDF grants – now it involves some city funds,” said Arndt.
Cady questioned whether there was any give to the interest rate.
“Sure, there’s some flexibility,” Arndt responded, acknowledging the rate might dip below 5 percent, on a case-by-case basis.
First created on July 10, 2007, the Downtown Revitalization Loan Program has been extended for three years until July 10, 2010, “or until extended by vote of the City Council,” said Arndt.
For more information on the loan program or to pick up an application, contact: Penny Anderson, planning assistant, at 764-2503, e-mail panderson@presqueisleme.us; Arndt at 764-2527 or e-mail karndt@presqueisleme.us; or stop by City Hall during business hours, Monday-Friday.
Staff photo/Kathy McCarty
KEN ARNDT, planning and development director for the city of Presque Isle, updated members of the Downtown Revitalization Committee on the city’s Downtown Revitalization Loan Program during the DRC’s July 31 meeting. Pictured, from left: Jamie Francomano, city planner; Arndt; Skip Babineau, DRC member; Kristen Cady, director of the Main Street Maine Program; Sandy Gauvin, DRC secretary; Jan Murchison, DRC member; and Craig Green, DRC member.
