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HomeMy WebLinkAbout1984-05-30 84-218 ORDER84-218 Introduced by Councilor Frankel, Hay 30, 1980 CITY OF BANGOR (TITLE.) (IDxiiCr...... Aaogtivg the sang center Revitalization Logy,. Program ........ By City Caused? of Oita ofBamgor: ORDEEED, - THAT WHEREAS, Title I Of the Housing and Community Development Act of 1974, as amended, (42 U.S.C. 6 8 5301 at seq.) provides that the primary objective of the Act Is the development of viable urban communities through the provision of decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low- and moderate -income; and WHEREAS, said Act further provides that Federal assistance under Title I thereof shall be for the support of Community Develop- ment activities which are directed towards certain objectives, one ofwhich is the alleviation of physical and economic distress through the stimulation of private investmentand community revital- Ization 1n areas with a stagnating or declining tax base; and WHEREAS, Downtown Revitalization Activities are eligible for assistance from Community Development Block Grant funds provided to municipalities pursuant to said Aet; and WHEREAS, the City of Bangor COBG application for FT 1982, BY 1983 and FY 1984 funds Included provisions relative to the funding of Downtown R¢vitalizatlow'Activities; and WHEREAS, the City Council of the City of Bangor hereby determines that the goals of said Act and the City"e Community Development Program would best be served by the establishment of a Downtown Revitalization Loan Programto provide assistance for eligible Community Development activities as set forth in the Act and its implementing regulations; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the Bangor Center Revitalization Loan Program, a copy of which is on file in the office of the City Clerk. Is hereby adopted and approved. In City cuuniil May 30r1984 84-218 Passed - O R D E R Title '84.4123 W035 .Adopting theBangor Center Revitalization 'RELENEO F 9 Clerk - .. ....... OR Was Program LITY CIEArc ` - Introduced and —filed by councilman - 84-218 CITY OF BANGOR BANGOR CENTER REVITALIZATION LOAN PROGRAM PART I GOAL To create and retain jobs, principally for low- and moderate -income persons; leverage private investment; alleviate physical and economic distress; restore and Preserve properties of special value fax historic, architectural or aesthetic reasons; remove material and architectural barriers which restrict the mobility and accessibility of elderly and handicapped persons; elimi- nate blight and blighting influences; and to strengthen the economic, employment and tax base of the downtown area through the provision of Community Development financial assistance. PART II ELIGIBILITY CRITERIA 2.1 General Bangor Center Revitalization Loans (hereinafter "Loan^ or "Loans") may be used to finance the following types of activities, and related costs, either singularly or i combination, for revitalization projects located in the Bangor Center Revitalization Area designated under the Bangor Center Revitalization Area Ordinance (hereinafter "Area"), the boundaries of which are delineated an the Bangor Centex Revitalization Area Map attached hereto as Exhibit A and incorporated herein by reference: a. The acquisition, -construction, reconstruction, rehabilitation, expansion, repair Dy installation of commercial, residential or mixed-use buildings, structures, and other real property equipment and improvements. b. The acquisition, construction, reconstruction, or installation of equipment, furniture or fixtures if the same are to be part of the real estate upon which they are located. C. Working capital or operational funds. d. Technical assistance, and other forms of support, for any other activity necessary or appropriate to catty out an area revitalization project. 2.2 Applicant Eligibilit To be eligible for a Loan an applicant must: 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 doe and out- standing. 2.3 Project Eligibility All projects to be assisted must: a. Meet the eligibility requirements of the Community Development Block Grant Program and funding consideration factors of the DDAG Program. b. Be able to support a determination that the project is both necessary and appropriate to meet Program Goals indicated 1n PART I. C. Provide a measurable impact in terms of jobs Created and/or retained, and/or bring properties into conformance with City Codes. PART III ADMINISTRATION OF PROGRAM 3.1 General The City of Bangor Department of Planning and Community Development (hereinafter "Department"), through its Director (hereinafter "Director"), shall be responsible for the administration of the Bangor Center Revitali- zation Loan Program (hereinafter "Program") in confor- mance with the City of Bangor's programs of Community Development and all applicable federal, state and local statutes, regulations, and ordinances, as may be amended. 3.2 Loan Application Loan applications shall be processed by the Department of Planning and Community Development. Applicants shall be required to provide such data as deemed necessary for a Proper evaluation of the Loan request. 3.3 Loan Approval The Loan Review Committee (hereinafter "Committee") established by Council Order 93-342 "Adopting the Bangor Economic Incentive Revolving Loan Program" shall c side, and approve or disapprove all Loan applications, and shall decide an all questions concerning eligibility for said Program including all questions as to possible conflicts of interest. PART IV TERMS AND CONDITIONS 4.1 General This section sets forth the general Lerma and conditions of the Program. 4.2 Application for Financial Assistance Applicants most complete applications for Loan funds and submit data as requested to the satisfaction of the Director and Committee. All loan applications shall require the approval of the Committee aad shall be contingent upon the issuance of any required permits by the city, state or federal government. 4.3 Application for 1 of Proposed Improvements Applicants must obtain all necessary approvals and/or permits from the City of Bangor. No Loan to finance work volving exterior property improvements shall be made unless and until all the proposed exterior improvement ark has been reviewed and approved by the Design Review Committee under the provisions of the Bangor Center Revi- talization Area Ordinance, and in the case Of buildings listed of eligible to be listed in the National Register Of Historic Places or located in Historic Districts so listed or eligible to be listed, all improvements certified by the State Historic Pr ... r Vation Officer as not constituting an adverse impact. 4.4 Initiation and Completion of Funded t' it' es Applicants must agree to undertake and complete all activities involving Loan funds in accordance with -a schedule approved by the Director and the Committee. Activities commenced or Completed prior to Loan approval are not eligible for Program financial assistance. 4.5 Applicants must provide such plans, specifications, cost estimates, bids and/or contracts as requested in Order for the Director and the Committee to determine the full extent of the activities to be financed and the reasonableness of costs. 4.6 Project Loan Note At the time of final loan approval, the applicant shall execute a promissory note (and mortgage if required) for the full amount of the Loan. From this point on, the applicant will be known as the "Borrowern. The note/ mortgage shall provide fox payment of the loan according to an amortization repayment schedule. The loan docu- ments shall establish the time and place for delivery of Payments, the amount, the maturity date, and shall Provide for any loan security or additional stipulations as required by the City. 4.7 Loan Cancellation Provisions The Committee, at its option, reserves the right to cancel an approved loan if, after 60 days from the date Of execution of the note, the Borrower has failed or refused, to commence rehabilitation/improvement activi- ties, or, if after commencing work, a period of 60 days of unjustified inactivity occurs. Further, the City, at its option, may cancel an approved loan of the owner has not fully completed the rehabili- tation/improvement activities as required by Part 4.4 above. Specific loan cancellation or acceleration pro- visions be contained in the promissory note. The Borrower shall have all rights of cancellation provided by law. 4.8 Interest Rate The interest rate shall be established by the Committee and generally will carry a fixed rate of interest for the full term of the note. 4.9 Term of Loan The term of repayment of a loan will be established by the Committee and will be consistent with normal lending Practices of private lending institutions. 4.10 Loan Payments Late h Loan Default, d Interest Penalty Upon default, the Director shall notify the Borrower of his failure to comply with the terms of the loan.Agree- ment. At the discretion of the Committee, the Director shall takeall appropriate measures necessty to correct .the airmailo. 4.11 Loan Security A Loan for less than $5,000 need not be secured by collateral. Loans of $5,000 or more generally shall be secured by sufficient collateral acceptable to the Committee. The cost of preparation and registration of the security instrument shall be borne by the Borrower and shall be paid to the City at the time of the loan closing, or included in the loan amount. 4.12 Work Schedule Borrower must agree to follow the r ommended work schedule established by the Director and Committee and when applicable, the Design Review Committee to complete the work satisfactorily. 4.13 Municipal Codes and Ordinances Borrower must agree to follow the procedures and con- ditions of all established and applicable municipal codes and ordinances in the rehabilitation of buildings, completion of improvements and in future maintenance of the improved property. The Borrower also must comply with all federal requirements as contained in the loan agreement. 4.14 Bid Proposals and Self Hain The Director and/or Committee may require that an applicant secure at least two cost estimates or bids for each specific activity to be financed which adequately describes the activity or work to be performed. The Borrower is solely responsible to invite and accept or reject any bid proposal, provided, however, that n person or entity appearing on the current Department of Housing and Urban Development consolidated list of debarred, suspended or ineligible contractors may per- form any work or receive any payment in conjunction with a Loan. No member of the Bangor City Council or other public official who exercises any functions or responsi- bilities with respect to the Community Development Program shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work performed in connection with a Loan. If, however, the low bid is not accepted for a particular work com- ponent, the Borrower must submit to the Director an acceptable written statement which explains the reason for accepting the higher bid. Any contractor chosen must provide all necessary expertise, equipment, and materials to satisfactorily complete the respective task. Bid proposals may be secured from and a aided to a ember of the Borrower's family if the bidder (i.e. relative): a. is a bona fide and skilled tradesman; b, is not living in the same household as the Borrower; C. has no direct or indirect financial interest in the property to be rehabilitated; and d. the relationship is disclosed in writing by the Borrower at the time of bid proposal. The Borrower may assume any or all contractor responsi- bility if he can satisfactorily demonstrate to the City that he can provide all necessary expertise, equipment, and materials to complete the respective task. The Borrower, however, may not receive any payment for his personal expertise and/or labor. No member of the Borrower's extended family will be reimbursed with Property Improvement Loan funds for unskilled labor Provided. In all cases, the Borrower is responsible to satisfy the program's procedures to obtain loan disburse- ment. 4.15 Inspection Borrower must agree to permit reasonable inspection during normal business hours by representatives of the City of the property, rehabilitation/improvement work, and all contract agreements, materials, equipment, pay- rolls, and conditions of employment pertaining to activities financed under the Program. 4.16 Disbursement of Property Improvement Loan nods Disbursement of Loan funds is contingent upon the completion of approved rehabilitation/improvements according to applicable municipal codes and ordinances as verified by the inspection of the City of Bangor. No money will be disbursed to reimburse the Borrower for exterior rehabilitation/improvements made to the property which hewere of approved by the Design Review Committee. In properties listed 11 eligible to be listed in the National Register of Historic Places or located in Historic Districts so listed or eligible to be listed, no money will be disbursed to reimburse. the Borrower for work not certified by the State Historic Preservation Officer, before commencement of such work. v 4.17 Use of Funds Any Loan funds not expended upon completion of the approved rehabilitation/improvement work must be either returned to the City as a reduction of principal or used for additional activities approved by the Director and submitted to and approved as appropriate by the Design Review Committee and/or the State Historic Preservation Officer for the same property or project. 4.18 Prepayment of Rote A Borrower may prepay any or all outstanding principal to the City at anytime and without penalty. 4.19 Transfer of Improved Property Ownership of a property improved with Loan funds cannot be transferred prior to full loan repayment unless loan repayment arrangements are approved by the City. 4.20 Insurance A Borrower isrequired to maintain hazard insurance on the improved Property and/or equipment and fixtures or other Loan collateral for the full term of the note and for an amount equal to the total value Of all mortgages held anthe property. 4.21 Records A Borrower agrees to keep such records as may be required by the City. 4.22 Points of Agreement With Respect to Federal Regulations The Borrower must agree to abide by all terms and conditions of Federal Regulations governing the use of CLAD funds, including but not limited to: a. Federal Labor Standards A Borrower must abide by established minimum wage rates (Davis -Bacon Act as supplemented by Depart- ment of Labor regulations) for all construction contracts awarded in excess of $2kM. b. Lead -Based Paint Hazards Any loans made by the City of Bangor for rehabili- tation shall be made subject to the provisions fox the elimination of lead-based paint hazards. c. "Section 3" The Borrower must comply with the Provisions of Training, Employment and Business Opportunities. d. Flood Hazard Insurance If the property to be improved is located in a designated flood hazard area, the applicant is required to carry flood plain insurance and abide by the regulations of the Flood Disaster Protection Act of 1973. e. Civil Rights Act of 1969 A Borrower must not discriminate upon the basis of calor, creed, or national origin in the sale, lease, rental Or occupancy of an improved property. f. Interest of Certain Federal Officials No member of, or Delegate to, the Congress of the United States, and no resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same. 9. Interest of Members, officers r Employees f Operaiing Agenc Memb E o f Governing Body. r Other Public officials No member, officer, or employee of the Clty's Department of Planning and Community Develoment or its agents or assigns, no municipal officers of the City, and no other member of any board or commis- sion, elected or appointed official of Bangor o employee of the City of Bangor who exercises any decision-making functions or responsibilities respecting the Community Development Program shall have any direct or indirect pecuniary interest as that term is defined by 30 M.R.S.A., Section 2250 at seg. in any contract or subcontract, or the proceeds thereof for work to be performed in con- nection with the program assisted under this Agreement. h. Bonus, Commission or Fee A Borrower cannot pay any bonus, commission, or fee for the purpose of obtaining the City of Bangor's approval of the loan application, or any other approval of concurrence required by the City of Bangor or its designee to complete the activity financed in whole or in part with the Loan. I. Fair Housing A Borrower must abide by Title VIII of the Civil Rights Act of 1968 (Public Law 99-284; 42 U.S.C., Sec. 3601 at seg.), popularly known as the Fair Housing Act, which prohibits any person from dis- criminating in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including inany way making unavailable r denying a dwelling to any person, because of race, color, religion, sex or national origin. ). Ron -discrimination A Borrower must abide by Executive Order 11063, as amended by Executive Order 12259, and HUD's imple- enting regulations contained in 24 CPR Part 107, dealing with the prevention of discrimination because of race, color, religion (creed), 5x or national origin in the sale, leasing, rental or other disposition of residential property and related facilities, or in the use and occupancy thereof, if provided in whole or in part by aid from the Federal Government. k. Prohibition of Discrimination A Borrower must abide by Section 109 of the Housing and Community Development Act of 1974, asamended, (42 U.S.C., Sec. 5309), dealing with the prohibi- tion of discrimination on the ground of race, color, national origin, or sex under any program or activity funded in whole or in part with funds under the Act, and HUD's implementing regulations contained in 24 CPR Sec. 570.602. 1. Environmental Policy A Borrower must abide by 42 U.S.C., Sec. 5304 (f), 42 U.S.C., Sections 4321 at seq. (National Environ - ental Policy Act, of 1969), and HUD's implementing regulations contained in 24 CFR Part 58, dealing with compliance with certain environmental standards and procedural requirements. M. Relocation Assistance A Borrower must abide by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C., Sections 4601 at seg.) and HUD's implementing regulations contained in 24 CFR Part 42, and 24 CPR Section 570.606 which deal with 10 the acquisition of real property for a community development activity and the displacement of any family, individual, business, non-profit organi- cation, or farm that results from such acquisition. n. Bgual Opportunity A Borrower must abide by Executive Order 11296 and the regulations issued pursuant thereto (91 CFR Chapter 60) and Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. Section 1701u1, dealing with non-discrimination in employment, the Provision of opportunities for training and employment to lower income persons, and the award Of contracts to eligible business concerns which are located in, or owned in substantial part by persons residing in the same metropolitan area as the project. Ineligible Contractors A Borrower must abide by 29 CPR Section 570.609 and 24 CFR Part 29, dealing with the prohibition on the use of debarred, suspended, or ineligible con- tractors or subcontractors. Other Requirements A Borrower must abide by such other laws, statutes, regulations, ordinances, administrative rules, etc. as may aicularbeI or may become, applicable to the par - project assisted under this Program. In order to be eligible for assistance under this Program, the Borrower must agree to abide by all of the applicable Federal Regulations, and any amend- ments thereto, or replacements thereof, governing the use of CBBG funds. PART V LOAN LIMITS 5.1 General The Bangor Center Revitalization Loan Program is intended to provide Community Development financial assistance similar to that available under the Urban Development Action Grant (UDAG) Program but for projects that are less in total project cost than those normally financed under the UDAG Program. Since the UDAG program is enable for assisting larger projects, and because of the limited amount of City Community Development funds, the maximum amount of a Bangor Center Revitalization Loan is established as $75,000 unless otherwise approved for specific projects by separate City Council Order. 11 5.2 small Projects Normally twenty-five percent (258) of total project cost shall be the maximum Loan amount. For smaller projects the committee may waive the 254 maximum Loan participa- tion requirement.