§ 4-21. Loans for Downtown, Main Street, Commercial District.

(a)

Eligible participants. Applicants must own a small or medium sized commercial building in the boundaries of the Downtown, Main Street, Commercial District whose boundaries are:

North Boundary: Second Street

South Boundary: Alley of Blocks 22, 19, 14 and 11 as extended

East Boundary: Second Avenue

West Boundary: Sixth Avenue

A commercial building is a building whose first floor is used for restaurants, liquor establishments, stores or offices and other C-1A permitted and conditional uses other than R-2A permitted and conditional uses. A small or medium sized commercial building is less than 14,200 square feet on the first floor and can have three stories or less.

(b)

Eligible projects.

(1)

Design. All facade improvement projects will be reviewed and approved by the International Falls Main Street Design Board prior to application for funds with the bank of the applicant's choice. Eligible projects must meet the criteria of the Main Street Design Guidelines and include tuck-pointing, painting, or cleaning exterior wall(s), window replacement for improved energy conservation or aesthetic quality, and improved or new signage, awnings, or canopies. All other projects are subject to the approval of the International Falls Main Street Design Board.

(2)

Credit. Property owners must have good and marketable title to the property to be improved. Real estate taxes and mortgages on the property must be current. A credit report and personal financial statement for individuals or partners, and three trade references must be provided, and approved by the city's economic development designee.

(3)

Costs. Eligible costs for financing with the loan funds include professional services, materials, and contractor expenses. Loan funds are available for improvements only; refinancing is not eligible under this loan program.

(c)

Terms.

(1)	Minimum loan amount	$5,000.00
(2)	Maximum loan amount	20,000.00
(3)	Amortization	One year per $1,000.00 borrowed, subject to a ten-year maximum.
(4)	Payee	City of International Falls as administered by.
(5)	Interest rate	two percent or as set forth by subsequent council resolution.
(6)	Collateral	Mortgage and security agreement covering fixtures on property to be improved and supported by assessor's estimated market value, a title opinion, and insurance policy listing International Falls as loss payee. Building insurance must be carried for an amount at least equal to the mortgage on the property. The existing mortgage balances plus the new loan funds cannot exceed 80% of tax assessed property value or appraised value.
(7)	Due on sale clause	Loan is payable upon sale of the property.
(8)	Completion of project deadline	All eligible projects must be completed within one year of the start of the project.
(9)	Closing costs	To be paid in cash at the time of the closing.

 

(d)

Return of principal and interest. All principal and interest received by International Falls Main Street in each calendar year shall be refunded to the city by February of the following year. All principal and interest and loans are the property of the City of International Falls.

(e)

Reporting. The status of each loan shall be provided to the City of International Falls Economic Developer's office explaining the status of each loan, including any delinquencies, the expenses incurred each calendar year, and the monies held by Main Street.

(f)

Administration consistent with law. Main Street will administer this program consistent with M.S.A. § 469.184 and subsequent amendments of such law.

(g)

Loan position. Main Street, after approval by the city council, is hereby authorized to make a loan with sole or co-financing from any financial institution so long as any mortgage results with similar positions based on principal advanced. A loan may be made without co-financing from a financial institution.

(h)

Financial institution to be held harmless. Any financial institution that acts as an agent for Main Street or the City of International Falls pursuant to this chapter shall be held harmless from any negligence since the financial institution is assisting in the administration, execution, and closing of the loans in this program without remuneration and for the good of the community.

(Ord. No. 23, 3rd series, eff. 9-9-98)