Aug 15

Mason City business to get new parking lot with forgivable loan from city

Grawmondbecks (photo via Facebook)

(photo via Facebook)

MASON CITY – A Mason City business will get a forgivable loan to upgrade a gravel parking lot and aged door.

On July 20, the Corridor Revitalization Loan Review Committee (CoRL) reviewed a loan application by Grawmondbecks Competition Engines at 3709 South Federal Avenue, to pave their gravel parking lot and replace an aging access door. City documents show “the Committee agreed that this would be an excellent use of CoRL resources, as this project greatly improves the aesthetics of this property.”

The loan will be forwarded for Council approval at the second August meeting.

The goal of the Corridor Revitalization Loan (CoRL) Program is to encourage rehabilitation and revitalization of commercial buildings along the city’s older commercial corridors. This forgivable loan program provides an incentive to improve both the interior and exterior condition of the benefitted properties, leading to stable occupancy, improved aesthetics and economic benefits to the benefitted properties and to the city as a whole.

The City will use Tax Increment Financing (TIF) funds to provide a forgivable loan of up to $30,000 for exterior and interior reno- vations, matched with funds from other sources. A maximum of $20,000 may be used for interior renovations; ratio of funds used for interior and exterior to be determined at time of approval. The program is intended for revitalization, aesthetic improvement, and an increase in value along the corridors; loans must support these goals.

The applicant must be the building owner.

The cost of the renovations/improvements will be a forgivable mortgage loan, which is forgiven over seven years at the rate of 1/84th of the principal, per month. If the pur- chaser sells the property within the forgiveness period, the re- maining balance of the rehabilitation cost will be due, with inter- est (pro-rated to the nearest complete month). If the buyer enters into a loan agreement with the City and signs a promissory note for the remaining balance of the loan, the seller can be released from the mortgage and repayment.

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