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.