City programs can assist downtown development

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The city of Springfield offers two types of low-interest loan programs to assist in center city development:|ret||ret||tab|

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Facade loans |ret||ret||tab|

Available since 1996, the city has issued 25 center city facade improvement loans totaling nearly $500,000, according to the city of Springfield. |ret||ret||tab|

Facade loans have a cap of $40,000 and are federally funded via Community Development Block Grants.|ret||ret||tab|

The loans are to be used for permanent, exterior improvements including masonry repairs and tuck pointing, preservation of historically significant architectural details, original storefront reconstruction, and window and door replacements.|ret||ret||tab|

A requirement is that the interior of the building be in sound repair and is subject to the city's redevelopment review team site inspection. The city monitors the project in coordination with the owner or architect and issues checks as work progresses.|ret||ret||tab|

Eligible areas are the Park Central Square area, the Boonville commercial corridor and the Commercial Street Historic District.|ret||ret||tab|

Terms of the facade loans are 10 years or less, with interest and principal deferred for the first five years. |ret||ret||tab|

The remaining five years are at 5 percent interest.|ret||ret||tab|

For example, a $15,000, 10-year loan at 5 percent interest will incur a $318 monthly payment through years 6-10. The total payment to the city would be $16,984.|ret||ret||tab|

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Small business loans|ret||ret||tab|

Also funded by block grants, small business development loans are offered to business owners, nonprofit organizations and real estate developers planning development within several city project areas.|ret||ret||tab|

SBD loans were created in 1984, but Chuck Marinec, city grants administrator, said they were slow to develop.|ret||ret||tab|

"It picked up steam in the early '90s and has really taken off since then," he said. "Our (SBD) loan portfolio was just under $1 million in 1991; now it's about $4.75 million."|ret||ret||tab|

Marinec said 76 SBD loans have been issued. |ret||ret||tab|

The loans target but are not limited to the center city area. Marinec said 75 percent of the SBD loans are for the downtown area. |ret||ret||tab|

Project requirements include acquisition of property and buildings, rehabilitation, mixed-use development, historic preservation or new construction. The project also must remove slum or blight, or create jobs for low- to moderate-income persons.|ret||ret||tab|

These loans also have a 5 percent interest rate and are not to exceed 15 years. There is no cap on the SBD loans.|ret||ret||tab|

The city's loan portfolio, between the two programs, is valued at about $5.25 million, Marinec said.|ret||ret||tab|

Springfield's community development loan officer is Ann Peck, who works in the Department of Planning and Development.|ret||ret||tab|

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