5.6. SR 10-27-2003 - Laserfiche WebLink

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City of Elk River Downtown Revitalization Project tDRA~Tl Commercial and Mixed-Use (Residential) Buildin Rehabilitation Program Purpose The City of Elk River is notable for its downtown commerdal district adjacent to the Mississippi River. There are many intact and historically unique buildings. The Commercial and Mixed-Use Building Rehabilitation Program has been designed to enhance the City's Redevelopment Financing Program (Micro Loan) and to provide the finandal incentive necessary for property owners and business tenants to bring their properties up to desirable community standards. The City believes that it is crucial to preserve the older buildings, maintain the tax base and generally enhance the : economic viability of the city core. New housing in the downtown will generate increased business further justifying renewed reinvestment. Eligible Improvements Building owners may make exterior improvements that will prevent or eliminate blighting conditions where the property has been determined to be substandard. Building improvements and repairs must correct defects and deficiencies that affect the safety, energy' consumption, habitability, handicapped accessibility, or appearance of the property. Conditions of Participation Participants in the Commercial and Mixed-Use Rehabilitation Program must agree to the following program requirements: ,~ · Building condition inspection/evaluation · Approval by the State Historic Preservation Office · Asbestos and lead evaluations; abatement where required. Temporary relocation may be required if abatement is necessary. Costs may be included in loan. · Competitive bidding and federal labor standards (prevailing wages, weekly payroll reviews, etc.) will apply to the entire project. · Residential rental properties must agree to rent units to low and moderate income tenants at rents, including utilities, no more than I-F. JD Fair Market rents. Financial Assistance Commerdal Properties. The City of Elk River (with SCDP Program funds) will provide 5-year deferred loan financing for up to 40 percent of the project cost for eligible improvements. The City will commit its Redevelopment Financing Fund (Micro Loan) for up to $50,000 of the balance of the project, in addition to private sources - either new equity investment or commerdal financing. Partidpants who retain ownership of the property for 5-years or more will not have to repay the loan. Repayment in full will be required if property ownership is transferred 5-years following closing. Residential/Mixed-Use Properties. Under the Residential Rehabilitation component, owners may request up to $15,000 per unit to make health and safety codes and energy efficiency improvements. There is no match requirement; however property owners will be responsible for financing improvements in excess of $15,000. At least 51% of the units must be occupied by iow and moderate-income households and rent levels shall not exceed the HUD Fair Market rents. Owners will be encouraged to use other public financing as might be available through the Minnesota Housing Finance Agency.