Business Facade
Rehabilitation Loan Fund
"Building Community Through Reinvestment"
POLICIES AND PROCEDURES
Business Facade
Rehabilitation Loan Fund
POLICIES AND PROCEDURES
Introduction
The policies and procedures outlined in this document provide a framework within which
the Business Façade Rehabilitation Loan Fund will operate. The policies herein have
been set and adopted by the City of Spearfish with the goal of further enhancing the
visual appearance of the core business district. The parameters of the program should be
adhered to and the Spearfish City Council can only make changes in the policies and
procedures.
The Spearfish Economic Development Corporation's Loan Review Committee will
conduct periodic reviews of the program. The policies should remain flexible enough to
enable the program to meet the current and future needs of entities located within the
boundaries specified by the program.
1) PROGRAM GOALS
The goal of the Business Façade Rehabilitation Loan Fund is to stimulate private
investment in designated business districts and improve the economic vibrancy of the
area through fostering an attractive environment and preserving the architectural heritage
of the downtown properties. To accomplish program goals, low interest municipal loans
will be made available to eligible property owners and/or tenants of commercial buildings
located within the targeted areas for the purpose of upgrading the exterior appearance of
their business(es). Joint financing (the "Joint Loan") with commercial lenders is
encouraged under the program.
2) ELIGIBILITY REQUIREMENTS
Owners and tenants of existing commercial property (excluding rental property used
primarily for dwelling units {i.e apartments}) located along Jackson Blvd. (east/west)
from Exit 12 to St. Joe and on Main St. (north/south) from Nevada St. to Hwy 14
(Spearfish Canyon entrance) and to also include properties located within downtown
central commercial core zoning district are eligible to apply for assistance.
a. Tenants of commercial property must be able to provide documentation of the
property owner’s consent of the improvements at the time of application. Written
consent may either be in the form of a lease indicating the lessee’s responsibility for
property renovations and repair or documentation of the property owner’s agreement
to the proposed rehabilitation. If the security for the loan will be real property, the
property owner must sign a mortgage or other necessary documents.
b. Applicants must have a Primary Lender in place prior to applying for assistance
and/or must demonstrate adequate borrower's matching funds.
3) USE OF LOAN FUNDS
Proceeds from the Business Façade Rehabilitation Loan Fund may include any of the
following purposes:
a. Façade Painting
b. Exterior Wall Cleaning and Restoration
c. Repair, Add or Replace Awnings
d. Repair, Add or Replace Windows and/or Window Treatments
e. Repair, Add or Replace Doors
f. Repair, Add or Replace Signage (must not be exclusive)
g. Façade and Display Window Lighting
h. Architectural and Engineering Design Services
i. Removal of old signs, awnings, and other exterior clutter
j. Installation of permanent Landscaping
k. Handicapped Accessibility
l. Public Access Improvements
m. Building permits and Fees
All improvements must conform with the City Building Codes. Participants’ proposals
may be subject to design review by the City.
4) FINANCING POLICIES
a. The maximum amount of any one single store front project is $10,000 or 50% of the
project cost – whichever is less, per tenant or property owner per year. There is no
maximum project cost, and the loan by the Primary Lender may exceed $10,000. The
Primary Lender and/or barrower or a combination of each may not fund less then
50% of project costs.
b. Minimum BFR Loan amount will be $1,000.
c. Interest rate will be a maximum of 3% per annum. Currently all loans are fixed at 0%.
d. The term of the loan will not exceed five years.
e. Loan will be secured by a perfected real estate mortgage.
f. All borrowers will be required to maintain adequate fire, liability and hazard
insurance, naming the Primary Lender (if any) and the City as creditor loss payees.
g. BFR Loans will be offered on a first come, first served basis.
5) APPLICATION AND REVIEW PROCESS
Application forms for a BFR Loan can be obtained from the City of Spearfish or the
Spearfish Economic Development Corporation. Those seeking a "Joint Loan" with a
Primary Lender are not required to complete the financial portion of BFR application.
a. Applicants will submit a completed application and all supporting document directly
c.
d.
e.
f.
g.
to the office of the Spearfish Economic Development Corporation.
Preliminary plans, color samples, awning, signs designs, contractor bids and budget
should be submitted with completed BFR loan application.
The applicant must meet the eligibility requirements of the program.
The BFR Committee shall review the application for completeness and shall notify
the applicant what further or additional information is required from the applicant, if
any, before the bank and/or committee will declare the application complete.
In a Joint Loan, the Primary Lender will complete the financial analysis of the
applicant, and if approved, will provide the BFR Committee a commitment letter
outlining the loan terms. The BFR Committee may: (i) rely upon the Primary
Lender's financial records and documentation; or (ii) may adopt the Primary Lender's
loan approval requirements, in whole or in part, and add further loan approval
conditions.
Upon the BRF Committee declaring the application complete, the BFR Loan Review
Committee and/or BFR Design Review Committee shall jointly review the
application and shall, within 10 days thereafter, make a joint recommendation to the
City Council for approval or denial. The City Council shall, within 30 days of the
date of the BFR recommendation, either approve or deny the application.
6) CREDIT CRITERIA
The Business Façade Rehabilitation Loan Fund Review Committee will base its
recommendation to the City Council on the following criteria:
a.
b.
c.
d.
The applicant must meet the eligibility requirements of the program.
The applicant must show the ability to service the debt.
The applicant must have the ability to manage and show commitment to the project.
The payment/credit history of the applicant with other lenders and creditors must be
satisfactory.
e. The review of the proposed collateral must be satisfactory.
7) APPROVAL OF APPLICATION
If a loan application is approved by the City Council, the applicant shall execute such
agreements and documents as necessary that shall provide the rights and responsibilities
of all parties and the terms and conditions of the loan. Applicants will be responsible for
all loan-processing fees. Projects must be started within 60 days after loan approval,
unless a special schedule is approved.
8) PROGRAM CONDITIONS
a. Loan proceeds will be dispersed after all improvements are complete. Applicant
must present proof showing that all project costs have been paid in full and all
contracts have executed waivers of mechanic's liens.
b. Qualified and insured contractors with appropriate contractor's license and
certification must perform all structural work.
c. Participants may be asked to display a sign provided by the City. The sign shall be
placed on the premise and be viewable by the general public. The sign shall be
posted from the date of the Loan Agreement until the final disbursement of loan
funds or until 30 days after the completion of the project. The sign shall read:
A Successful Participant
Of The
Business Façade Rehabilitation Loan Fund
9) LOAN REVIEW COMMITTEE
The Business Façade Loan Review Committee shall consist of members
appointed to the Spearfish Economic Revolving Loan Fund Committee