NEIGHBORHOOD REINVESTMENT GRANT PROGRAM
I. GENERAL PURPOSE AND OBJECTIVES
The Business Development Corporation of Electra (BDCE) was established after voters passed a measure to use a percentage of Sales Tax revenue to promote local business expansion and retention, while also attracting new business enterprises to the community. It is the responsibility of the BDCE 7-member board to administer the proceeds in a manner consistent with the will of the voters. During the budget-making process for each fiscal year, the BDCE develops its own operating budget which is then submitted to the City Commission for approval. Sales tax proceeds are set aside in a separate restricted account and are not part of the City’s budget.
The BDCE wanted to assist existing businesses within the community in their efforts to growth of their operations. The BDCE found that many of these businesses were encountering financial challenges which made it difficult for the business to “spruce up” the exterior of their property.
Often, business owners are willing to make improvements to the exterior of their business, but do not have the financial resources required to really make a significant impact. In such cases, the BDCE can step in and provide the extra financial push to make the improvements a reality. Attractive businesses located in an attractive community attracts new economic activity. For the Community’s future, Electra should be seen as a community that is open for business.
II. ACTIONS
One of the options the BDCE chose to establish in order to promote Electra and its unique history is through the redevelopment and revitalization of existing buildings throughout the community, especially in the Downtown Historical District and the area along Business Hwy 287. Both of these areas serve as a main thoroughfare for residents. This effort focuses on exterior improvement, historic preservation, and community involvement within areas designated as eligible for assistance in this program. The members of the BDCE wanted to provide grants that were significant enough to encourage businesses to enter into improvements of their buildings.
Through the Neighborhood Reinvestment Grant Program (NRGP), the BDCE offers a 50% matching grant of up to $25,000 per building. Smaller grant amounts were discussed, but the Board again felt that the grants should be enticing enough to really make a difference to the buildings.
The BDCE went before the Electra City Commissioners on April 14, 2015 and requested that funds be allocated for this project from the Corporation’s reserves. The Neighborhood Reinvestment Grant program was originally funded with initial funding of $75,000 from BDCE reserves. The BDCE ensured through legal counsel that Type B funds could be used for this purpose (allowable under section 505.18 of the Government Code).
III. GRANT GUIDELINES
1. Façade rehabilitation grant funds are available for exterior work on commercial building facades that immediately overlook public streets.
2. No grant applications are accepted for work that has already been started or complete, or for work that is covered by insurance. All grant applications must be approved prior to start of work.
3. Grants are awarded on a reimbursement basis once completed work has been verified by City staff as compliant with the plans proposed in the approved application. Any deviation from the approved grant project may result in the total or partial withdrawal of the grant.
4. All submitted work must comply with the City of Electra’s Municipal Codes and Ordinances. Historical buildings will be reviewed based on the Secretary of the Interior’s Standards for Rehabilitation.
5. Grant applications and awards can be made in any of the reimbursable activities listed in the criteria and may be combined for any single property or project. The maximum award amount available annually per project is $25,000.
6. An applicant is defined as an eligible commercial property within the grant program area. A single owner of multiple properties may apply for grant funds for each property owned, but may not receive more than $25,000 per property. All applications must be complete, with quotes for completion of the work attached to the application, before the grant will be reviewed.
7. If an applicant is awarded a reinvestment grant for façade, awning or sign work and the façade, sign or awning is altered for any reason within one (1) year from construction, the applicant may be required to reimburse the Business Development Corporation of Electra immediately for the full amount of the grant.
8. Projects are reviewed and ranked with the following considerations in mind:
• Project results in an increase in property valuation and/or generates sales tax revenue
• Project rehabilitation reflects historic accuracy
• Project improves the capacity of water, wastewater and/or electric utility services
• Project results in a significant increase in downtown population (residents and/or day or night users)
• Location (i.e., proximity to Hwy. 25 and Bus. Hwy 287; Downtown Historical District within the boundaries of Front Street on the South, Electra Street on the East, Roosevelt on the north, and Wichita Street on the west)
• Other appropriate impacts may be considered on a case-by-case basis
9. Only commercial businesses or home-based businesses with separate public entrance/access are eligible for this program. Non-profit organizations are not eligible for this grant program.
10. Applications with quotes that exceed $15,000 in requested reimbursement from the BDCE are required to have two quotes for service. The applicant may still choose their contractor, but the BDCE wishes to ensure that they are receiving appropriate quotes for service.
IV. PROGRAM DETAILS
Reinvestment grants are available for the following types of projects:
Façade Rehabilitation and Building Renovation
Definition:
Removing slipcovers or non-historic/added facades, repointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick, replacing windows, restoring transom windows, painting, parking lot resurfacing, roof and foundation work.
Awnings & Signs
Definition:
Replacing, adding or repairing awnings and signs. Signs may include signboards, projecting signs and pedestrian signage (includes window sign, hanging sign and awning/canopy sign).
Utility Upgrades
Definition:
Upgrades to water, wastewater and electrical service, including interior upgrades as well as exterior service upgrades.
V. GRANT APPLICATION PROCESS
1. Contact the Economic Development Director or the City Administrator to discuss project and determine eligibility. If requested, the Economic Development Director will set up an appointment with the Texas Main Street Center’s Architectural Assistance Program, which provides free assistance in selecting paint, color schemes and building and sign materials for building facades and signs. Grants that involve structures within the Downtown Historical District are required to receive approval from the Design Review Board.
2. Complete grant application form and sign the agreement form. Return the completed application form with all original itemized work estimates, color samples, drawings and example sign material of the proposed work to the Business Development Corporation of Electra’s City Hall address at 109 N. Main no later than 5 pm the first Monday of each month. Applications should include:
a. Drawings of all proposed grant work to be done. Drawings may be prepared by the Texas Main Street Architect, the project architect, or contractor.
b. Color samples of all final paint selections and/or final building or sign material selections must be included with the application.
c. Itemized work estimates on all project work from contractors or project architects must be included with the application. (Self-contracted work will be reimbursed for eligible expenses, excluding labor).
d. Photos of the building’s exterior, interior, roof or foundation (areas where work is to be performed).
3. The approval process will include without limitation the following:
a. All projects must meet current building standards and codes, as well as building permit requirements.
b. Applicants are required to present their grant reinvestment project to the BDCE Board of Directors.
c. Applications must be complete and contain all required information. Additional information requested by the BDCE or City Commissioners must be provided prior to consideration of the grant.
d. All construction bids submitted by an applicant must be current and must be dated no earlier than ninety (90) days prior to the application request. Bids shall be submitted on the contractor’s or project architect’s letterhead and shall contain the contractor’s name, address, telephone number and shall itemize the bid in a manner that allows the NRTF, BDCE and City Commissioners to determine the bid components and authenticity of the bid.
e. An applicant whose application that has been denied by the City Commissioners shall not be eligible to re-submit a grant application for six (6) months from the date the prior application was declined by the City Commission.
f. Applicants receiving approval shall commence construction described within the application within ninety (90) days from the date the grant is awarded. All applicants must complete the construction described in the application within one (1) year from the date the grant is approved. If the applicant is unable to commence construction within ninety (90) days from the date the grant is approved or complete construction within one (1) year from the date the grant is approved, the applicant may submit a written request for an extension for the commencement date or completion date provided the extension request is made prior to the ninety (90) day or one (1) year limit. The BDCE shall not be obligated to allow extensions, but may do so for good cause determined solely by the entity which authorized the grant. The extensions, if granted, shall be for the term and for the conditions determined exclusively by the entity which authorized the grant. An extension denial cannot be appealed and shall be final.
g. As a condition of this grant application, the applicant consents and shall allow the BDCE staff to request City inspections to determine that the grant, if awarded, will not be used for construction on any building that is not in compliance with City Municipal Codes and Ordinances that are applicable to the construction contemplated in the application.
h. No applicant has a proprietary right to receive grant funds. Each request will be considered on a case-by-case basis.
i. The applicant shall be required to furnish photographs of the building’s exterior, roof and foundation after the construction is completed, as a condition of final grant reimbursement.
j. The applicant is required to obtain all applicable City permits and City approvals required for the construction if a grant is awarded.
k. An applicant should attend BDCE and City Commission meetings in which consideration of the application occurs.
4. Reimbursement: When the grant project has been satisfactorily completed and reviewed, the applicant shall present the BDCE with copies of all paid invoices, including copies of cancelled checks and/or credit card receipts, for a single payment reimbursement of the approved funding. In addition, the applicant must complete a Form 1099 to receive payment from the City which will be provided by the City of Electra Administration office.
VI. ALTERNATIVE FUNDING OPTION
The Business Development Corporation of Electra (BDCE) understands that not all businesses/individuals may have the up-front funds necessary to bear the cost of improvement. For projects requiring significant funding, or projects requiring a bank loan for assistance, the BDCE may act as a loan guarantor.
1. Each project will be reviewed on a case-by-case basis. The BDCE may be willing to guarantee all or a portion of the indebtedness with a local financial institution.
2. Each project is subject to credit worthiness of the owner(s). Applications must be complete and contain all required information. Additional information requested by the BDCE, or City Commissioners must be provided prior to consideration of the grant.
3. The properties under this program would be subject to a lien on the property, with a guarantee to be paid back within a certain period of time. The time frame for repayment would be negotiated on a case-by-case basis, and dependent on circumstances associated with the possible loan guarantee.
4. If recommended by the BCDE, loan guarantees of more than $10,000 will be placed on the City Commissioner’s agenda who will take under consideration the recommendations from the BDCE. The BDCE recommendations are advisory only, and no recommendation shall be binding on the City Commissioners. Further, the City Commissioners has the final discretion with regard to funding and reserves the right to modify or reject any project or elements of any project, partially or in total.