IDEAL Guidelines PROGRAM FEATURES o The program offers incentive grants, in the form of partial reimbursement for up-fit, façade improvement, and/or architectural design services, meeting the program’s eligibility and location requirements. o Funding for the program comes from the MSD property tax levy and is limited in any fiscal year to the program budget approved by City Council. Funding awards are meritbased and subject to funding limitations. o The Gastonia City Council shall have final authority and discretion over the award of all incentive grants under the IDEAL Program, and may continue, alter, or discontinue funding for any or all of the programs at any time. ELIGIBILITY o To be eligible for funding assistance under the IDEAL Program incentives, the following criteria must be demonstrated: Property must be located within the established MSD of the City of Gastonia. The property owner must be an MSD taxpayer. Existing businesses relocating within the MSD or from another City location to the MSD are eligible if: 1.) the move represents an improvement, increased investment in, or expansion of the business; 2.) the new location is an addition in a chain of businesses; or (3) the business is unable to continue in its present location due to circumstances beyond its control. Business must be either a category I, II, III, IV, or V use as described below: RETAIL TRADE: Engaged in the sale of merchandise offered at retail to the general public. I. II. RESTAURANT: Engaged in the sale of prepared food and beverages primarily for onsite consumption. III. THEATER/ENTERTAINMENT VENUE: Engaged primarily in the presentation, for a fee, of on-site performance of vocal and instrumental music, theater, dance, comedy, or combinations (excluding adult entertainment). IV. PUBS, BARS, LOUNGES: Emphasize entertainment and alcohol sales and provide limited food service. V. OFFICE: Engaged in the conduct of business, profession, or service where retail trade is not conducted as the primary business. Non-profit organizations are eligible to apply for IDEAL grants as long as the organization or the property owner from which it will be leasing space are MSD taxpayers. Residential projects (developed for the purpose of leasing) are eligible for IDEAL grants; however, applications will be considered on a case-by-case basis. Individuals renovating living space for personal use are not eligible for IDEAL grants. Business must be open to and serve the general public on a non-discriminatory basis. Property owners must lease to tenants on a non-discriminatory basis. INCENTIVES o UP-FIT Following formal application and City Council approval, grant recipients shall receive a one-time incentive grant. The amount will be determined as follows: o Category I, IV, or V (Retail, Pubs, Bars, Lounges, or Office): Reimbursement not to exceed 50% of allowable business up-fit expenses up to a maximum of $2.00 times the square footage of total dedicated space. o Category II or III (Restaurants, Theater, or Entertainment Venues): Reimbursement not to exceed 50% of allowable business up-fit expenses up to a maximum of $3.50 times the square footage of total dedicated space. Example: Retail up-fit at $1.00/sq. ft. x 2,000 sq. ft. = $2,000.00 award. (If up-fit expenses total at least $4,000.00). o Allowable up-fit expenses will be limited to stationary additions and/or renovations which remain with the building if/when the lease is terminated. Property owners and tenants may not receive grants for the same space. Payment of up-fit grant shall be paid to approved grant recipients within 30 days following the submittal and approval of both contractor lien waivers and paid invoices showing actual up-fit expenses. Property owners may apply for an up-fit grant for a commercial space that is not leased in an effort to attract a tenant. However, the grant awarded will not be payable until after the landlord secures a one-year or more lease for the space. The landlord can receive up-fit reimbursement as stated above when he/she presents a copy of the signed lease with the reimbursement request. A property owner may be the recipient or beneficiary of one up-fit grant in a period of 24 months not to exceed $12,000 and 50% of overall up-fit cost, including any façade grants awarded. However, the City Council’s Central City Revitalization and Housing Committee (CCRHC) may consider and recommend approval to full Council of a grant that exceeds this limitation if the Committee deems the proposed project of special significance to Downtown revitalization. o ARCHITECTURAL DESIGN SERVICES Design services should generally be related to the production of architectural renderings, elevations, floor plans, schematics, concept drawings, up-fit specifications and schedules including MEPs (mechanical, engineering and plumbing drawings), and/or fixture specifications and inventories, and/or cost-estimates associated with any such building improvements, additions, alterations, or up-fit. Either the property owner or an eligible tenant or prospective tenant may apply for and be granted this incentive, as long as the product of any services acquired remains accessible to and useable by the building owner whether or not the design services actually result in the leasing or renovation of the space in question. Following the application process and City Council approval, grant recipients shall receive a voucher for architectural design services, not to exceed ten (10) billable hours at an hourly rate not to exceed $125.00 per hour provided on applicant’s behalf by architect(s) approved by the City Manager or City Council. Contact information for approved architects is included with the application for architectural design services. Building owners who own multiple buildings or storefronts may be granted or benefit from multiple vouchers as long as the cumulative total vouchers in one program year does not exceed ten (10) billable hours. Payment of architectural design services shall be paid to the approved architect(s) only, within 15 business days following submittal of invoices detailing work completed under a granted voucher. o FAÇADE IMPROVEMENT Applicant for this grant award can be a property owner or tenant. A tenant requesting the grant must have been in operation in the MSD for more than 12 months. Facade must meet established Central Business District design standards as outlined by the City’s Unified Development Ordinance. Following the application process and City Council approval, eligible businesses shall receive a grant payment for façade alteration or improvement limited to no more than 50%, up to $2,500, of incurred cost which is payable as a reimbursement upon receipt of paid invoices detailing actual expenses. Façade grant payments shall be available to recipients within 30 days following the submittal and approval of required documentation of expenses. o GASTON CHAMBER MEMBERSHIP Following the application process and City Council approval, grant recipients who are not currently Gaston Chamber members are eligible to receive: o A one-year trial membership in the Gaston Chamber, funded jointly by the IDEAL program and the Chamber’s Membership Scholarship Program, to provide grant recipients with access to business expertise, instruction, and contacts to help promote the success of the recipient’s business. o An assignment matching the grant recipient with a Gaston Chamber member in a similar business in a mentoring relationship designed to help promote the success of the recipient’s business. APPLICATION AND SELECTION PROCESS o Applicants must submit the following to be considered for IDEAL grants: 1. A fully completed application Form (A) and the associated supporting documents: A. business and marketing plan questionnaire, B. cash flow statement form, and, C. pro forma profit and loss statement form. 2. A letter of intent to lease or a signed lease contract. 3. Cost-estimates for planned up-fit (when applying for up-fit incentive). 4. Personal, financial, and business history/experience and applicable supporting documents should be available for review and possible submittal during the application process. o The selection process will include a review of the application and accompanying support data. The application is first reviewed by the IDEAL Review Committee, which is composed of a group of City staff members with applicable expertise and ad hoc private sector consultants, appointed by the City Manager, who have appropriate business-related expertise. The IDEAL Review Committee summarizes its assessment of the applicant’s eligibility and the viability of the business and forwards its findings to the City Council’s Central City Revitalization and Housing Committee (CCRHC). The CCRHC reviews the application and the staff findings and considers the application in an open public Committee meeting. The CCRHC makes a determination on the grant request and makes a formal recommendation to the full Council. The full Council reviews the CCRHC’s recommendation in a regularly scheduled Council meeting and votes to approve, not approve, or amend the CCRHC’s recommendation. No application is final until the full City Council has reviewed and approved the request. o In conjunction with the IDEAL application process, the Small Business Center at Gaston College can instruct and assist applicants in providing the information required in the business and marketing plan questionnaire and the cash flow and pro forma profit and loss statements, as outlined above in #1 A-C. It is recommended that applicants utilize this service and greater consideration may be given to those applicants who take advantage of the advisory or tutorial process designed specifically for them by the Small Business Center consultant(s). o Applicants may be required to attend business skills development instruction offered by either the Charlotte SCORE organization or the Small Business Center at Gaston College as a condition of grant approval. o Applicants should submit a fully completed application form (B) to be considered for the Architectural Design Services grant described above. o Applicants must submit a fully completed application form (C) to be considered for the Façade Improvement grant described above. o All amounts due to the City of Gastonia, including but not limited to utilities and property taxes, must be current before any payments are made to the grant recipient. o Applications are considered based on merits of the request and the applicant’s business’ contribution to the overall success of downtown development. Council can determine the amount of the grant based on the business’ value to downtown development and how it attracts visitors and business to downtown as a whole. Other criteria used for determining the amount of a grant: number of similar existing businesses, uniqueness of business to downtown, amounts historically given to similar kinds of business, etc.