HomeMy WebLinkAbout1991-05-13 91-205 ORDER{aanml ACBon
Data May 6, 1991 - hanw. 91-305'
Approving and Adopting Business Development
Item/Subject: Loan Program
Iapammle Department: Community & Economic Development Dept.
Commusand
The proposed Business Development Loan Program would
consolidate the Bangor Center Revitalization Area Facade Loan
Pool Program, Bangor Center Revitalization Loan Program And
Bangor Economic Incentive Revolving Loan Program into one loan
program which would provide loan assistance for all of the
activities presently eligible for funding under the loan
programa it would replace. The major proposed differences are
n increase in the average loan amount limitation from $5,000 to
$1,500 per job created or retained with a maximum possible
amount of $10,000 per job; an increase in total maximum loan
amount which could be approved by the Loan Review Committee from
$15,000 to $100,000; and loanassistance for facade improvements
would be eligible only as part of a building improvement project
which would eliminateallcode violations.
A Memorandum providing a more detailed summary of the
proposedBusiness Development Loan Program is attached.
Specific program guidelines are available upon regues .
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�. 91-205
Aeogosdb Camdor Bragg, May 13, 1991
r CITY OF BANGOR
(TITLE,) Orberf_..._Approv+Rg and. Adoptiag Business _Development ._.......
By Ow Guy Coaaat of the Oft ofBasFm.
ORDERED,
THAT WHEREAS, the primary objective of the Housing and
Community Development Act of 1974, as amended, is the development
of viable urban communities, by providing decent housing and a
suitable living environment and expending economic opportunities,
principally for persons of low- and moderate -Income; and
WHEREAS, consistent withthis primary objective,
the City of Bangor has established goals to create and retain
jobs, principally for low- and moderate -income persona, through
the use of Community Development Block Grant funds to stimulate
and leverage private investment, alleviate physical and economic
distress, and expand tax revenues; and
WHEREAS, the City Council of the City of Bangor
has previously approved and adopted the Bangor Economic Incentive
Revolving Loan program, the Bangor Center Revitalisation Loan
Program and Bangor Center Revitalization Area Facade. Loan Pool
Program to accomplish such goals and objectives; and
WHEREAS, the City Council of the City of Bangor
s determined that the goals and objectives of said Act and the
City's Community Development Program would best be served by the
consolidation of the above previously adopted Loan programs;
HOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL
OF THE CITY OF BANGOR THAT the Business Development Loan Program,
a copy of which is on file in the office of the City Clerk, is
hereby approved and adopted; and _
BE IT ALSO ORDERED THAT the Business Development
Loan Program hereby supersedes and replaces the Bangor Economic
Incentive Revolving Loan Program adopted by Council Order 83-342,
the Bangor Center Revitalisation Loan Program adopted by Council
Order 84-218 antl the Bangor Center Revitalization Area Facade Loan
pool Program established by Council. Order 83-201.
91205
In City Council May U, 1991 O R D E R
Passed
Title,
IL I`� Appr ng and Adopting 2 iness
itY Clerl......................................
Development Loan Program
..... I ..............................
G. —&u
...... Aapedto ....
co .Lan
WHAT ARE WE ASKING YOU TO DO?
Volmecertoorgmdzearounddre Town Meetin IMHmivelnymrmmm"V! Ifyoutell
us you can help (whichwe hope yourwilll), we will owed you our simple Tow to"
equalizer kit complete with everything you need including "talking poffi&', couple media
releme&letter-to-the-editor,andpostem. Asammmunityorgani r,weaskymm:
1) Ask your selecemWenunegnrs W place discussion of the resolution on their
board<mmcil meeting agenda for adoption by July 1.
2) Two weeks (if possible) before the meeting, put posters up in strategic locations
around town to publicize and encourage attendance m the meeting.
3) Invite your friends, neighbors, clergy, teachers, merchants, community leaders, etc.
to apmd the meeting and speak on behalf of the resolution. -
4) One week before the meeting, mail a mediu release to your local press asking Nem
to apmd and report on the meeting. An "optional exW' is to ask locat maidmts
to write Ittmrs-to-Ncedimron behalfafNe resolution.
NOTE: Munkipd ofidals, town mmmem and ebndos A, racogmasweeideleve trzuowned hJmme-
tion w Weiown Mating LtitiYive aW,ugM W appart Wertmlmion. flurspring Town Meeting
Initiative newakna will be mailed in two April to oven 5,000 citeew and elected officials wound the
note. We are wndting4hoody with as near ttlaonm& wwdbes as possible in towns and cities
scows We uses a ask for Weir support out ph ement of We resoluawn on Wer mating agenda.
And, the following have already adopted the resolution - Auburn, Biddeford,
Hollis, Preachville, Smithfield and New Sheronl
Congressional Record. Congressman Tom Andrews makes
floor speech on behalfofMe resolution and repots the resolution
and his remarks into the Congressional Record. His comments
commend the resolution to the U.S. Congress, Maine Legislature
& municipalities, and municipalities& state legislatmesamand the
country.
Press Conference. Immediately following (areficipared) resolu-
adopBmbySure Legulamre, a press conference will be held at the
State House with resolution m sponmrs to aumunce adoption by
the Iegulatme end kick -of the Town Meeting Initiative.
Mid Aptil -
Municipal Resolutions. Maine towns and rides discuss and
July 1
adopt resolutions.
September
Congressional Resolution. Enemmgedby Maine municipal
and Sous Uldslahue resolutions, Maine mngressioml delegation
introduce ajoint congressional "Reinvest in Hometown Anted®"
resolution calling on the president to change national priorities.
Note:
Simultaneous strategies to promote and publicize the resolution
include working with the National Council of State Legislators,
National League of Cities, and U.S. Conference of Mayors tourge
resolution adoption by municipalities and erme legislatures
nationwide; presenmtimts& resolution adoption rryuests to local
organimtions; ongoing mediacampaign; public hearings and
workshops; publications and signature ad.
WHAT ARE WE ASKING YOU TO DO?
Volmecertoorgmdzearounddre Town Meetin IMHmivelnymrmmm"V! Ifyoutell
us you can help (whichwe hope yourwilll), we will owed you our simple Tow to"
equalizer kit complete with everything you need including "talking poffi&', couple media
releme&letter-to-the-editor,andpostem. Asammmunityorgani r,weaskymm:
1) Ask your selecemWenunegnrs W place discussion of the resolution on their
board<mmcil meeting agenda for adoption by July 1.
2) Two weeks (if possible) before the meeting, put posters up in strategic locations
around town to publicize and encourage attendance m the meeting.
3) Invite your friends, neighbors, clergy, teachers, merchants, community leaders, etc.
to apmd the meeting and speak on behalf of the resolution. -
4) One week before the meeting, mail a mediu release to your local press asking Nem
to apmd and report on the meeting. An "optional exW' is to ask locat maidmts
to write Ittmrs-to-Ncedimron behalfafNe resolution.
NOTE: Munkipd ofidals, town mmmem and ebndos A, racogmasweeideleve trzuowned hJmme-
tion w Weiown Mating LtitiYive aW,ugM W appart Wertmlmion. flurspring Town Meeting
Initiative newakna will be mailed in two April to oven 5,000 citeew and elected officials wound the
note. We are wndting4hoody with as near ttlaonm& wwdbes as possible in towns and cities
scows We uses a ask for Weir support out ph ement of We resoluawn on Wer mating agenda.
And, the following have already adopted the resolution - Auburn, Biddeford,
Hollis, Preachville, Smithfield and New Sheronl
TOWN MEETING INITIATIVE
of the Peace Economy Project
Thornhurst Road, Falmouth, Maine 04105 - (207) 781-3947 - 839-6258
QTTITZIOXIM
The purpose of the Town Meeting Initiative is to provide a form for public and elected
official education, dialogue and action an sentiment priorities as alocal issue and
responsibility. Itupon cubnors and local governments to participate N federal budget
decisions and economic conversion and diveraifimtim planning to promote and meet the
challenges rad opportunities of reduced military spending and, capons municipal
"Remvesl N Hometown Amoica"" reclaims. The resoludon is a simple but strong
retirement urging that the federal government re-establish partnerships with both local and
stem governments so that the process of reinvestment nt our states, towns and cities can
begin. It expressos citizen and local elected officials' concern about the well-being of our
communities, car mem, our nation and the world =it calls an Congress and the Presidxl
to work and vale for new national priorities.
Spadffcally,NerewludonaskstbatCmgressmdth President: (1)Rerogorzegsatlhe
ecurity ofmrcaumry u dependent on the wellbeing of car xonomy, environment and
people and to use the opportunity of dramatic improvements m relations between the Fast
and West to reduce military spending proportimme to reduced military guests: (2) RMirxd
fedeal tax dollars saved toward such crltiral domestic proposes as education, convicts -
meant] protection, infrastructure, housing, health are, social services, transportation, and
employment and job raining, as well as; deficit reduction; and (3) Assist those industries,
workers and communities most affected by military cutbazks to make the transition from
military to civilian activities.
Scheduled for March 1991, the Town Meeting Initiative was postponed to avoid public
debate on reflood priorities becoming a debate on the Wfwar. Now Nat the war is over,
it u time to revive the Town Meeting Initiative and address the very and need for federal
Vwv em m make a mmmlunenl m a domestic agenda that defime security to include the
welfare of am economy and citizenry.
Hegiming in mid-April, municipal officials will be asked on place resolution discussion on
mi nidpd muncillboad] meetings for adoption by July 1.
RESOLUTION STRATEGY & TIMELINE
Mid April Maine Legislature Resolution. Joint Resolutimco-sponsored
by Same Melody Leader Clark (D), House Spcaker Marin (D),
Swam Minority Leader Caltill R), and Assistant Houser Minority
Leader Maumo(R) will come before the 115th Maine Legislature.
Some specific benefits Mainers could receive include: doubling the number ofchildren In Head
=Eat
tun; p atIfa rt millenoverfouryeats intoe revolving fund for wastewater treatment plants and
over$25 millionsyenfmto=Amnment,mergy cemervat!onprogmms;giving Med!midto
0,000 more Malacca and «nial assistance to 10,7W low income renters; enabling 11,500 more
women, int m and children to receive food and milk under the WIC Program and tripling the -
nuber ofchildren wed forwlmam now eligible forsubsidized child care; buyingnewbuses
d begiimingwmk on a (min at Basten; and giving up m 7,000 more Manners employment and
job training.
Ofjobs lost, the greatest impact will be felt by Maine's defense -dependent industries, workers and
communities. Fossedal thmealfected by milimryspendingtuts make a successful transition to
ommemial production andjobs will require a fedmaily mppened local economic conversion,
diversiftcationmMadj imempmras. While there are distinctobsmcles to convening highly
miliary-depandent producma, workers and communities to civilian activities, there also are distinct
opportunities. Mktemiewswithlomldefemecon(mmonmdlabor,anumberoferea(iveand
Profitable commercial possibilities were discussed For Bath Iron Works, theme possibilities
Include to
erch
machineant ships, BeaOng power plants, sections ofdams and tunnels, off -shore mining
vehicles,y. demed meet for bridges, double hull tankers, paand pef processing arecyling
The studys correlations are clew. A sustained transfer of funds from the military budget o it,
domestic Forstmann will yield long -tens benefits for Maine's economy, environment and people.
nom mmaamg continued research to afmlyu the nature and extent of
mnemic dependency on the military and projected impact of defense spending cuts and
economic
needs of defense -d "e1O1me" blesou oe srrengmenerr m more fully meet the
ependenfworkersandcommuniiies. And federal policieammppon
economically, envimmead lly, and socially sound and needed commemmi productsaml investment
shouldbepromosed.
This s" was conducted to document We possibilities fm Risser if the mi!itmy badger ;reduced pmlmdmmh W
tNmM embey, flown and We savings users not Indy to reduu We Ndget reach but rtti,wMa1 In domatk
Pmerms.nesndYwaepeepvelby Pmploymemgewaecb Asv ,m Ndepdendeuf,mn rLtftnomic
consulting fi which specializes to warbEing the imp.n of numerous, polities on We U. S. economy. ne Pane
Pommy pryM gives xpeclal thanks to We qudys co-aymms sed to E;Ewmm McKenm; We Saaa Phuring
Ofgca; them, pelnnmmfa of PEuutim,, Pnvbonmem, TOmPorta im, ISM, Human Se:vicn, Housing,ni
a
Emomic and GmmuNb Uevelcpmmt; local defame mnaeclm; labor, buthess, eudemia, W other govmun„
offichns ani community harass for War wvpemfio" and MimnxN providing valuable Np, for ads mount
]he Peas Economy PhIrect of We Melee henPura, out Makee Deese Gn¢alge is a ampory
me PRE4®, smewiAeecof dsignelro edmere udngage fm/utlame mMeheledofllciJxuren
eramieWim afnatiwWsnudbpiiaatli,andfheif impxYm Mu'ce TheRojzx ix xarYing with
1ws1Ma, uMmhy,/eMr, govumnae(,edAepJe,la"I sommWitiv,eM o(EermmeG'MmiexronKef
rhe Malleagnol�mglmrybWgebudoyq:pputia roreinvaf AAmaiss.
A SHIFT IN FEDERAL SPENDING:
WHAT THE PEACE DIVIDEND CAN
MEAN TO MAINE
A Rtymt for the Pea" Economy Project
prepared by Employment Research Associates - 1990
Co-spun+"N by. For Copies of the study vaWar
MaheA Clo more Information, nates
Mune Coumil Nf]mrd,q
MCN¢CevelapmmtFw,MaYw Susie Schwepp"F
Pea stay Prm,jou
jecl
Endorsed by.
FnlmwuW,Mthonsuth,MW
Meme Cmrfermce ofMeyan eine01105 (30])]81-39C]
EXECUTIVE SUMMARY
A 7% manual shift in federal spending from the military budget to key civilian programs would
bring over 100%more federal dollars into Maine. More jobsand higher mcomomd revenues
wouldbegenerawd. Term of thousands of children and young people would be better educated;
low income Mainers would have improved housing, nmri0on and health care; and theirs, land and
water of our slaw would be purer and healthier.
This vial an of Monies future is not rhetorical but a real possibility if local citiurm call upon our
notices leaders to change federal policy and spending priorities. This is the basic conclusion ora
sandy, 'A Shift in Federal Spending; Nkat the Peace Dividend P Mean to Maine, which
awlyus a 7%annual across the based cut in military spending between 1991-1994 and
Mnvestmrnt of these GAeml dollars in domestic programs.
Nationally, a 7%annual cut in federal military spending over this form -year period would yield an
annual average of $59 billion in savings that could be spent for the domestic programs chosen by
the study's co-spomors for federal reinvestment - education, enviromnent, infrastructure,
transportation, housing, social and health services, civilian research & development and
employmentandjobtraining. Maine's percentage share ofline $58 billion for these programs
would result in a net increase in federal expenditures averaging over $200 million each year. There
would bean annual average of$166 million less spent on militarywmracb and alarms and $380
million more spent for these non-military programs.
The economic, social and environmental benefits result from We factors. First, the shift in federal
spending priorifies considered in this study would result in more fedend dollars coming to Maine
because Ne state receives a higher share of federal funding from these civilian programs than from
spending on the military. Second, spending on these civilian programs nimuUtes a higher level of
emnomicactivity. This is contrary to widespread opinion thmbigh militarybudgetsare good for
Maine.
There would be 8,200 more civilian and 5,200 fewer milimy,jobs for a mitannued gain of 3,000
ewjobs. The largest meas ofjob gain would be in ¢duration and health rareas Noe two areas
would receive substantial incretion in funding. There would also bean average increase in Maine's
Gross Sate product of $146 million per year. Personal dspesable income would go up an annual
average of over $60 million resulting in increased State sales tax revenues.
related to ownership, operation, and management of the property,
including repayment of the Business Development Loan. M
exception may be made in a case in which the ability of the
property to produce sufficient revenues appears possible, but
marginal. In such circumstances, an applicant's strong financial
condition and ability to repay may be used to support a finding of
acceptable risk.
Activities commenced or completed prior to Loan approval
are not eligible for program financial assistance.
Borrower must agree to follow the recommended work schedule
established by the Director and Committee and when applicable, the
Loan Review Committeeto complete the work satisfactorily.
This program will be initially funded with the balance of
unexpended funds originally budgeted for the three programa to be
replaced and the balance of funds in the Bangor sconomie Incentive
Revolving Loan fund.
RWrp
9.' _
related to ownership, operation, and management of the property,
including repayment of the Business Development Loan. M
exception may be made in a case in which the ability of the
property to produce sufficient revenues appears possible, but
marginal. In such circumstances, an applicant's strong financial
condition and ability to repay may be used to support a finding of
acceptable risk.
Activities commenced or completed prior to Loan approval
are not eligible for program financial assistance.
Borrower must agree to follow the recommended work schedule
established by the Director and Committee and when applicable, the
Loan Review Committeeto complete the work satisfactorily.
This program will be initially funded with the balance of
unexpended funds originally budgeted for the three programa to be
replaced and the balance of funds in the Bangor sconomie Incentive
Revolving Loan fund.
RWrp
To qualify for a BDLP Loan, the project to be assisted must
be located within the City of Bangor, must create and/or retain
jobs principally for low- and moderate -income persons, or must
comply with such criteria as may be established by the Department
Of Housing and Urban Development for satisfaction of the
requirements that activities benefit low- and moderate -income
persons.
Business Development Loans may be used to finance the
following types of activities and related costs,
a. The acquisition, construction, reconstruction,
rehabilitation, expansion, and/or installation of
Public facilities, site improvements, or utilities;
b. The acquisition, construction, reconstruction,
rehabilitation, expansion and/or installation of
commercial, mixed-use or industrial buildings and
structures and other commercial or industrial real
property, capital equipment and improvements;
C. The removal of architectural barriers which restrict
the mobility and accessibility of elderly or
handicapped persons.
d. The acquisition, construction, reconstruction,
rehabilitation, expansion, and/or installation of
capital equipment if the same are to be a part of the
real estate upon which they are located;
e. Working capital or operational funds; or
f. Such other assistance to private, for-profit entities
as may be deemed necessary or appropriate to carry out
an economic development project;
A project financed with a Business Oevelopment Loan musts
a. He able to support a determination that the project is
necessary or appropriate to meet program Goals; and
b. Provide a measurable impact in terms of the jobs
created and/or retained principally for low- and
moderate -income persons, or to remove architectural
barriers for handicapped persons in places of
employment or buildings of public access, and, where
applicable, bring properties into conformance with
applicable City Codes;
Generally a Business Development Loan shall not be made
with respect to a business -owned property if the property clearly
cannot produce sufficient revenues to satisfy all expenditures
ADEEDA ITEM ii
MEM _ 91-205
TO: City Council
FR: Rod McKay, Community Development Director
RE: Summary of proposed Business Development Loan Program
DATE: April 25, 1991
The proposed Business Development Loan program would
consolidate the Bangor Center Revitalization Area Facade Loan pool
Program, Bangor Center Revitalization Loan Program and Bangor
Economic Incentive Revolving Loan Program into one loan program
which would provide loan assistance for all of the activities
presently eligible for funding under the loan programa it would
replace. The major proposed differences are an increase in the
average loan amount limitation from $5,000 to $7,500 per job
created or retained with a maximum possible amount of $10,000 per
job; an increase in total maximum loan amount which could be
approved by the loan Review Committee from $75,000 to $100,000;
and loan assistance for facade improvements would be eligible only
s part of a building improvement project which would eliminate
all code violations.
The goals of this program are:
To create and retain jobs, principally for low- and
moderate -income persons, leverage private investment, alleviate
physical and economic distress, and expand tax revenues through
the use Of Community Development Block Grant Entitlement funds for
the acquisition of real property for economic development
purposes; for the acquisition, construction, reconstruction,
rehabilitation and installation of public facilities, site
improvements, and utilities; for the acquisition, construction,
reconstruction, rehabilitation and installation of commercial or
industrial buildings and structures and other commercial er
industrial real property improvements; and to provide assistance
to private, for-profit entities, when the assistance in necessary
to carry out an economic development project.
The City Of Bangor Department of Community and Economic
Development, through its Director, is responsible for the
administration of the Program, including its marketing and
management, the screening of applicants, the conduct of initial
interviews with loan candidates, consultation with the Director of
Community Development to determine if projects are in conformance
with the regulations of the Community Development Block Grant
Program and are eligible activities under this program and all
other applicable federal, state and local statutes, regulations,
and ordinances, as may be amended, preparation of applications and
related documents, and presentation of eligible project
applications to the Loan Review Committee for consideration and
approval. For approved loans, the Department monitors the project
to ensure that it is in compliance with all requirements of the
Program and the federal, state and local laws, statutes, or
2
ordinances governing the Program. The Department ie also
responsible for the servicing of all Program loans, including the
collection and accounting of payments. The Department also keeps
and maintains records for each loan under this Program for all
.income and expenditures in regards to the Business Development
Loan Progress Food.
The Loan Review Committee considers and approves or
disapproves all loan applications, and decides on all question.
concerning eligibility including all questions as to possible
conflicts of interest.
A BOLP Loan may be made with respect to an eligible project
located within the City limits of the City of Bangor. Projects
must provide a measurable Impact in terms Of the jobs created and
retained principally for low- and moderate -income persons. On the
average, loans pursuant to this Program must leverage private
investment at a minimum ratio of Three Dollar. ($3.00) in private
funds to each One Dollar ($1.00) Provided through the BOLP. The
Loan Review Committee is required to render a written justifica-
tion for any loan in which the private investment does not satisfy
said 3 to 1 ratio.
The maximum loan shallnot exceed Ten Thousand Dollars
($10,000) for each job generated and/or retained. Due to the
limited amount of City Community Development funds, the maximum
amount of a BDLP Loan is established as $100,000 unless otherwise
approved for specific projects by separate City Council Order.
The interest rate for a Business Development Loan to a
far -profit Borrower would be established by the Committee. The
Committee would be required to consider debt service payments that
balance a maximum rate of return to the Business Development Loan
Program and the economic health of the project financed. Con-
sideration would he given to the purpose of the Loan and the
collateral securing the same in establishing the term of the
loan. A Business Development Loan involving a non-profit Borrower
would be at an interest rate of 3% per year. The term of the Loan
would be established by the Committee for a period not to exceed
twenty (20) years.
must, To qualify for a Loan under this Program, an applicant
A- Provide suitable proof of ownership, Or, for lessees,
written permission from the owner and suitable proof of
a leasehold interest for any property to be improved;
b. Evidence Adequate capacity to repay the Loan; -
C. Have paid all City property taxes and/or lease fees due
and outstanding.
related to ownership, operation, and management of the property,
including repayment of the Business Development Loan. An
exception may be made in a case in which the ability of the
property to produce sufficient revenues appears possible, but
marginal. in such circumstances, an applicant's strong financial
condition and ability to repay may be used to support a finding of
acceptable risk.
Activities commenced or completed prior to Loan approval
are not eligible for Program financial assistance.
Borrower must agree to follow the recommended work schedule
established by the Director and Committee andwhenapplicable, the
Loan Review Committee to complete the work satisfactorily.
This program will be initially funded with the balance of
unexpended funds originally budgeted for the three programs to ba
replaced and the balance of funds in the Bangor Economic Incentive
Revolving Loan fund.
RGMIrp
3
To quality for a BDLP Loan, the project to be assisted must
be located within the City of Bangor, must create and/or retain
Jobs principally for low- and moderate -income persons, or must
comply with such criteria as may be established by the Department
Of Housing and Urban Development for satisfaction of the
requirements that activities benefit low- and moderate -income
persons.
Business Development Loans may be used to finance the
following types of activities and related costs:
a. The acquisition, construction, reconstruction,
rehabilitation, expansion, and/or installation of
public facilities, site improvements, or utilities;
b. The acquisition, construction, reconstruction,
rehabilitation, expansion and/or installation of
commercial, mixed-use or industrial buildings and
structures and other commercial or industrial real
property, capital equipment and improvements;
C. The removal of architectural barriers which restrict
the mobility and accessibility of elderly or
handicapped persons.
d. The acquisition, construction, reconstruction,
rehabilitation, expansion, and/or installation of
capital equipment if the same are to be a part of the
real estate upon which they are located;
G. Working capital or operational funds; or
f. Such other assistance to private, for-profit entities
as may be deemed necessary or appropriate to carry out
an economic development project;
A project financed with a Business Development Loan most;
a. Be able to support a determination that the project is
necessary or appropriate to meet Program Goals; and
b. Provide a measurable impact in terms of the jobs
created and/or retained principally for low- and
mcderate-income persons, or to remove architectural
barriers for handicapped persons in places of
employment or buildings of public access, and, where
applicable, bring properties into conformance with
applicable City Codes;
Generally a Business Development Loan shall not be made
with respect to a business -owned property if the property clearly
cannot produce sufficient revenues to satisfy all expenditures
ordinances governing the Program. The Department is also
responsible for the servicing of all Program loans, including the
collection and accounting of payments. The Department also keeps
M maintains records for each loan under this Program for all
income and expenditures in regards to the Business Development
Loan Program Fund.
The Loan Review Committee considers and approves or
disapproves all loan applications, and decides on all questions
concerning eligibility including all questions as to possible
conflicts of interest.
A BDLP Loan may be made with respect to an eligible project. '
located within the City limits of the City of Bangor. Projects
must provide a measurable impact in terms of the jobs created and
retained principally for low- and moderate -income persons. On the
average, loans pursuant to this Pregram must leverage private
Investment at a minimum ratio of Three Dollars ($3.00) in private
funds to each One Dollar ($1.00) provided through the SDLP. The
Loan Review Committee is required to tender a written justifica-
tion for any loan in which the private investment does not satisfy
said 3 to 1 ratio.
The maximum loan shall not exceed Ten Thousand Dollars
($10,000) for each job generated and/or retained Due to the
limited amount of City Community Development funds, the maximum
amount Of a SDLP Loan is established as $100,000 unless otherwise
approved for specific projects by separate City Council Order.
The interest rate for a Business Development Loan to a
for-profit Borrower would be established by the. Committee. The
Co®ittee would be reguired to consider debt service payments that
balance a maximum rate of return to the Business Development Loan
Program and the economic health of the project financed. Con-
sideration would he given to the purpose of the Lose and the
collateral securing the same in establishing the term of the
loan. A Business Development -Loan involving -a nonprofit Borrower
would be at an interest rate of 3% per year. The term of the Loan
would be established by the Committee for a period net to exceed
twenty (20) years.
must: To qualify for a Loan ander this Program,an applicant
a. Provide suitable proof Of ownership, or, for lessees,
written Permission from the owner and suitable proof of
a leasehold interest for any prePerty to be improved;
b. Evidence adequate capacity to repay the Loan;
C. Have paid all City property taxes and/or lease fees due
and outstanding.
2
ordinances governing the Program. The Department is also
responsible for the servicing of all Program loans, including the
collection and accounting of payments. The Department also keeps
M maintains records for each loan under this Program for all
income and expenditures in regards to the Business Development
Loan Program Fund.
The Loan Review Committee considers and approves or
disapproves all loan applications, and decides on all questions
concerning eligibility including all questions as to possible
conflicts of interest.
A BDLP Loan may be made with respect to an eligible project. '
located within the City limits of the City of Bangor. Projects
must provide a measurable impact in terms of the jobs created and
retained principally for low- and moderate -income persons. On the
average, loans pursuant to this Pregram must leverage private
Investment at a minimum ratio of Three Dollars ($3.00) in private
funds to each One Dollar ($1.00) provided through the SDLP. The
Loan Review Committee is required to tender a written justifica-
tion for any loan in which the private investment does not satisfy
said 3 to 1 ratio.
The maximum loan shall not exceed Ten Thousand Dollars
($10,000) for each job generated and/or retained Due to the
limited amount of City Community Development funds, the maximum
amount Of a SDLP Loan is established as $100,000 unless otherwise
approved for specific projects by separate City Council Order.
The interest rate for a Business Development Loan to a
for-profit Borrower would be established by the. Committee. The
Co®ittee would be reguired to consider debt service payments that
balance a maximum rate of return to the Business Development Loan
Program and the economic health of the project financed. Con-
sideration would he given to the purpose of the Lose and the
collateral securing the same in establishing the term of the
loan. A Business Development -Loan involving -a nonprofit Borrower
would be at an interest rate of 3% per year. The term of the Loan
would be established by the Committee for a period net to exceed
twenty (20) years.
must: To qualify for a Loan ander this Program,an applicant
a. Provide suitable proof Of ownership, or, for lessees,
written Permission from the owner and suitable proof of
a leasehold interest for any prePerty to be improved;
b. Evidence adequate capacity to repay the Loan;
C. Have paid all City property taxes and/or lease fees due
and outstanding.
AGEPDA ITEM #1-
MEMO. 91-205
TO% City Council
FRz Rod McKay, Community Development Director
RE: Summary Of Proposed Business Development Loan Program
DATE: April 25, 1991
The Proposed Business Development Loan Program would
consolidate the Bangor Center Revitalization Area Facade Loan Pool
Program, Bangor Center Revitalization Loan Program and Bangor
Economic Incentive Revolving Loan Program into one loan program
which would provide loan assistance for all of the activities
presently eligible for funding under the loan programs it would
replace. The major proposed differences are an increase in the
average loan amc nt limitation from 55,000 to $7.,500 per job
created or retained with a maximum possible amount of $10,000 per
job; an increase in total maximum loan amount which could be
approved by the Loan Review Committee from $75,000 to $100,000;
and loan assistance for facade improvements would be eligible only
as part of a building improvement project which would eliminate
all code violations.
The goals of this program are;
To create ardi retain jobs, principally for low- and
moderate -income persons, leverage private investment, alleviate
Physical and economic distress, and expand tax revenues through
the use of Community Development Block Grant Entitlement funds for
the acquisition of real property for economic development
Purposes; for the acquisition, construction, reconstruction,
rehabilitation and installation of public facilities, site
imProvmsentso and utilities; for the acquisition, construction,
reconstruction, rehabilitation and installation of commercial or
industrial buildings and structures and other commercial or
industrial real property Improvements; and to provide assistance
to private, for-profit entities, when the assistance is necessary
to carry out an economic development project.
The City of Bangor Department of Community and Economic
Development, through its Director, is responsible for the
administration of the Program, including its marketing and
management, the screening of applicants, the conduct of initial
interviews with loan candidates, consultation with the Director of
Community Development to determine if projects are in conformance
with the regulations of the Community Development Block Grant
Program and are eligible activities under this Program and all
Other applicable federal, state and local statutes, regulations,
and ordinances, as may be emended, preparation of applications and
related documents, and presentation of eligible project
applications to the Loan Review Committee for consideration anA
approval. For approved loans, the Department monitors the project
to ensure that it is in compliance with all requirements of the
Program and the federal, state and local laws, statutes, or