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HomeMy WebLinkAbout1983-05-23 83-201 ORDER83-201 Introduced by Councilor Jordan, Mqy 23, 1983 CITY OF BANGOR (TITLE.) @rbtj ..............est blishing a Facade L.o.a..n Pool Program . .. By ag City geii of City of Biases. ORDERED, THAT WHEREAS, the City Council of the City of Bangor has enacted the Bangor Center Revitalization Area Ordinance, which Ordinance establishes minimum property rehabilitation standards for properties located within said Area; and .WHEREAS, the City Council is desirous of having the City of Bangorjoin with several lending institutions in the community to establish.a Facade Loan Pool Programfor the purpose of providing financial assistance for the required rehabilitation improvements; NOW, THEREFORE, IT IS HEREBY ORDERED BY THIS CITY COUNCIL OF THE CITY OF BANGOR THAT: '(1) The "Bangor Center Revitalization Area Facade Loan Pool Program", a copy of which is on file in the Office of the City Clerk and incorporated herein by reference,- is hereby approved and adopted. (2) The City Manager is hereby authorized to enter into and execute, on behalf of the City of Bangor, such participation agreements with the private lending institutions as may benecessary to implement the Facade Loan Pool Program. Provided, however,that such agreements must be approved by the Community Development Committee. t, 8R D b_} ;n a to, cowed had, qs 23.1983 0 RDE R eyes to woe the qw tiweyes g y 1 absent 1 abstained wC, [Sng Yea y Absesz DaymOUth Abse Titley Frontal Abswt Weymouth Atis[aivtl - Piavkal Vo[ieg No Ges6 8a[ab11aad e lnw Pool Program ••.; Vote for passage 6 Yes 1 N r_1.#ieylned 1. Absent - BsowrCozrDavlsrJordan.8oucy. .....:'....................... Willey nbsent,Wymoath{Abatalced ...'. r. �... - Frankel q troduced and 'led by ltY ctG V Ml„/ PART I PART II BANGOR CENTER REVITALIZATION AREA FACADE LOAN POOL PROGRAM GOALS 1. To provide -a program for the effective pooling of public and private funds for the exterior rehabili- tation of buildings and improvements to store front signs in the Bangor Center Revitalization Area i order to prevent further disinvestment and to encourage rehabilitation which visibly enhances the downtown. ELIGIBILITY CRITERIA' - 2.1 General A Facade Improvement Loan may be made for the rehabilitation of building exteriors and/or improve- ments to store front signs. The term"building exterior" is defined as any portion of the building from the interior finished wall to the exterior wall surface, excluding the interior finished wall but including the exterior wall surface, exterior wall insulation and roofing. The treatmentofwindows will be an allowable rehabilitation cost only where in the judgment of the Revitalization Area Design' Review Committee, the proposed window treatment will serve to preserve, restore Or enhance the building's original design features. "Improvements" to store front signs is understood to mean the alteration, replacement, or removal ofsignsaffixed to building facades and sidewalks. Any existing businesses, property owners, or tenants, a well as those establishing e new businesses within the Bangor Center Revitalization Area, are eligible to participate. In order to qualify for aFacade Improvement Loan, both the applicant and the property to be assisted must meet the minimum eligibility criteria set forth in Sections 2.2, 2.3, .and 2.4. 2.2 Property Eligibility To qualify for a Facade Improvement Loan, the property to be assisted must be located within the Bangor Center Revitalization Area (hereinafter "Area"), the boundaries of which are delineated on the Bangor Center 2 Revitalization Area Map attached hereto as Exhibit A and incorporated herein by reference. The term "property" is understood to mean either a building (detached or within a block) or a store front within a building. 2.3 Applicant Eligibility To qualify for a Facade Improvement Loan an applicant must: a. Provide suitable proof of ownership, or for lessees permission from the owner and suitable proof of a leasehold interest, for the property to be improved. b. Have paid all City property taxes. 2.4 Applicant must provide suitable evidence of ability to repay the Facade Improvement Loan. PART III LIMITATIONS OF FACADE IMPROVEMENT LOAN '- 3.1. Loan funds can only be used for exterior rehabilitation/ 'sign improvements approved by the Design Review Committee and/or the City's Zoning and Code Enforcement Admin- istration Officer. 3.2 Maximum Facade Improvement Loan. a. The maximum loan to a property owner for exterior building rehabilitation is $30,000 per property or individual business or the actual cost of the work, whichever is less. b. The maximum loan to a lessee for exterior building rehabilitation is $5,000 per lease- hold property or individual business or the actual cost of the work, whichever is lees, Provided, however, that a lessee may borrow the amountn unt set forth i subparagraph a. above _ if the loan is secured by sufficient collateral. The maximum loan amounts set forth above relate only t0 loans under this Program, and shall not be construed as a limitation on other sources or amounts of financing for rehabilitation activities. 3.3 The City of Bangor's participatory share of any Facade Improvement Loan shall not axceed 5" of the total, eligible amount of the loan, Or $15,000, whichever is less. 3 .PART IV GENERAL TERMS AND CONDITIONS 4.1 General This section sets forth the general terms and conditions with which an applicant must comply in order to process aFacade Improvement Loan. The applicant must: a. Complete an application at any participating bank. b. Agree to complete all of the rehabilitation improvement activities funded through the Facade Improvement Loan Program within one calendar year from the date of Design Review Committee approval of the same. C. Provide plans, specifications, acceptable oat estimates and/or contracts as required by the bank. 4.2 Costs Includable In Loan Eligible uses of Facade Improvement Loan funds are improvements to the exteriors (front, side and rear) of existing buildings located in the Bangor Center Revitalization Area, subject to the review and approval of the Rehabilitation Area Design Review Committee, such improvements include: a. The repair, cleaning and/or painting of all visible surfaces of exterior walla. b. The repair of deteriorated architectural features where possible or replacement only if necessary. C. Removal of all extraneous elements on exterior walls such as empty electrical boxes, conduits, pipes, unused sign brackets, etc. d. Repair or replacement of deteriorated gutters, rain water leaders, and downspouts. e. Removal of existing facades which are inappro- priate and incompatible with the existing structure or neighboring properties and replace- ment of the same with such appropriate and compatible facades as may be approved by the Design Review Committee. f. Repair or replacement of doors and windows where appropriate because of their deteriorated condition or to increase the efficient use of energy in the buildings a g. Repair, removal or replacement of exterior hardware and lighting fixtures. h. Repair or replacement of soft awnings. 1. Removal, repair or replacement Of exterior signs. I . Surfacing of parking areas, walks, and plazas with a hard, dustfree material. k. Landscaping of yards and vacant lots. 1. Removal of exterior appurtenances Or accessory ory structures which s no useful purpose, aor those in a deteriorated condition which are not economically repairable. M. Removal of existing fire escapes from the front to the rear of the building, or such other inconspicuous location on the building as may be physically necessary or the painting of existing fire escapes to minimize their visual impact. n. Building permits and relatedfees. C. Architectural services for the foregoing rehabilitation work to be financed through the Loan Pool, not to exceed Be of the total amount of rehabilitation work. P. Certain coats and charges related to processing the loan application, such as appraisal fees, title reports for secured loans, and fees for recordation and filing. 4.3 Application for Approval of Proposed Improvements To be eligible for a Facade Improvement Loan, applicant must obtain all necessary approvals and/or permits from the City of Bangor. Furthermore, no Facade Improvement Loan shall be made unless and until the proposed improvement work has been reviewed and approved by the Design Review Committee under the Bangor Center Revitalization Area Ordinance. 4.4 Application for Financial Assistance Applicants may obtain application forms for Facade Improvement Loan financial assistance from a partici- pating financial institution. Completed applications for financial assistance, along with Revitalization Area Design Review Committee approved plans and at least two cost estimates, shall be presented to the participating financial institution. All loan applications shall require the approval of the participating financial institution and the City's Director of Planning and community Development, and shall be contingent upon the issuance of a permit by the City's Zoning and Code Enforcement Administration Officer for the work to be performed. ,4.5 Loan cancellation Provisions The lender, at its option, reserves s the right to cancel an approved loan if, after60 days from the date of execution of the note, the borrower has failed or refuses to commence rehabilitation/improve- ment activities, or, if after commencing work, a period inexcess of 60 days of unjustified inactivity urea Further, the lender, at its option, may cancel an approved loan if the Owner has not fully completed the rehabilitation/improvement activities as required by Part 4.1 (b) above. Specific loan cancellation or acceleration provisions shall be contained in the promissory note. The borrower shall have all rights of cancellation provided by law. 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 Facade Improve- ent Loan. From this point on, the applicant will be known as the "Borrower". The note/mortgage shall provide for payment of the loan according to an amoritization repayment schedule. The loan documents 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 is generally required by the particular financial nstitution. 4.2 Interest Rate All Facade Improvement Loans will carry a fixed rate of interest for the full term of the note. In order to provide borrowers with a lower effective interest rate, the City's share of the Facade Improvement Loan shall be at M interest. 4.8 Term of Loan the maximum term of repayment of a Facade Improve- ent Loan for exterior building rehabilitation is 10 years. 4.9 Loan Payments Late Chargees Loan Default and Interest Penalty - Open default, the Lender shall notify the Borrower of his failure to comply with terms of the loan agreement. At the discretion of the Lender, Lender shall take all appropriate measures necessary to correct this matter. 4.10 Loan Security A Facade Improvement Loan for less than $5,000 need not be secured by collateral. Loans of $5,000 or more shall be secured by sufficient collateral, preferably a mortgage on the improved premises. The cost of preparation and registration of the. security instrument shall be borne by the borrower and shall be paidtothe participating financial institution at the time of the loan closing, or included in the loan amount. 4.11 Work Schedule Borrower must agree to follow the recommended work schedule deemed necessary by lender and the Design Review Committee tocomplete the work satisfactorily. 4.12 Municipal Codes and Ordinances Borrower must agree to follow the procedures and conditions of all established and applicable municipal ordinances in the rehabilitation of building exterior, Completion of improvements and in future maintenance of the improved property. Thn borrower also must comply with all federal requirements as contained in the loan agreement. 4.13 Bid Proposals and Self Hera The lender shall require that an applicant secure at least two cost estimates for each specific work task requiring the services of a contractor or sub- contractor. Standardized forms for bid proposals will be provided by the Community Development Office of the City's Department of Planning and Community Development. The borrower is solely responsible to invite and accept or reject any bid proposal. - Provided, however, that no person or entity appearing n the current Department of Housing and Urban Develop- ment consolidated list of debarred, suspended o ineligible contractors may perform any work or receive any payment in conjunction with a building facade loan. No member of the Bangor City Council or other public official who exercises any functions or respon- sibilities 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 building facade loan. If, however, the low bid is not accepted for a particular work component, the borrower must submit to the participating lending institution and the City's Director of Planning and Community Development a 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 awarded to a member 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 i writing by the borrower at the time of bid proposal. The borrower may assume any or all contractor respon- sibilities if 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/orlabor. No member of the borrower's extended family will be reimbursed with Facade Improvement Loan funds for unskilled labor provided. In all cases, the borrower is responsible to satisfy the program's procedures to obtain loan disbursement. 4.14 Inspection Borrower must agree to permit reasonable inspection during normal business hours bythe lender and/or representatives of the City of the property, exterior rehabilitation/improvement work, and all contract .agreements, materials, equipment, payrolls, and conditions of employment pertaining to the work. 4.15 Disbursement of Facade Immrovament Loan Funds Disbursement of Facade Improvement Loan funds 1 contingent upon the completionofapproved exterior rehabilitation/improvements acording to applicable municipal codes and ordinances a 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 were not approved by the Design Review Committee before they were commenced. 4.16 Use of Funds Any Facade Improvement funds not expended upon completion of the approved exterior rehabilitation/ improvement work must be either returned to the lender as a reduction of principal or used for additional rehabilitation activities (submitted to and approved by the Design Review Committee) for the same property. 4.17 Prepayment of Note' A borrower may prepay any or all outstanding principal to the lender at anytime and without penalty. 4.18 Transfer of Improved Property Ownership of a property improved with Facade Improve- ment Loan funds cannot be transferred unless loan' repayment arrangements are approved by lender. 4.19 Insurance A borrower is required to maintain hazard insurance n the improved propertyforthe full term of the note and for an amount equal to the total value of all mortgages held on the property. 4.20 A borrower agrees to keep such records as may Be required by the lender and as required in Attach- ment G to CMB Circular No. A-102 with respect to the rehabilitation work. 4.21 Points of Agreement with R t to Federal Regulations The borrower must agree to abidebyall terms and conditions of Federal Regulations governing the use Of MEG 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 Department of Labor regulations) for all construction contracts awarded in excess of $2,000. b. Lead -Based Paint Hazards Any loans made by the City of Bangor for facade rehabilitation shall be made subject to the provisions for the elimination of Lead-based Paint hazards. C. "Section 3" Me borrower must comply with the Provisions of Training, Employment and Business Opportunities. d. Flood Hazard Insurances If the property to be improved is located in 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 1964 A borrower must not discriminate upon the basis of race, color, 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, no resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the 10 g. Interest of Members Officers or EmploVees OfOSerating Agency Members Of Total GOvernina Body. or Other Public Officials No member, officer, or employee of the city'a Department of Planning and Community Development or its agents or assignees, no municipal officers of the City, and no other member of any board or commission, elected or appointed official of Bangor or employee of the City of Bangor who exercises any decisionmaking functions o responsibilities respecting the Community Develop- ment Program shall have any direct or indirect pecuniary interest as that term is defined by 30 M.R.S.A., Section 2250 at seq. in any contract or subcontract, or the proceeds thereof for work to be performed in connection 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 concurrance required by the City of Bangor or its designee to complete the rehabilitation work, financed i whole or in part with the rehabilitation loan.