Local lenders are teaming up to create a pool of loan money for urban development, with an emphasis on downtown Kokomo.
Kokomo Downtown Association director John Wiles said four Kokomo banks will capitalize a $2 million loan fund “for commercial real estate acquisitions with substantial renovations.”
The city’s Urban Enterprise Zone — a moderate- to low-income area surrounding and including the downtown — will be the target area for the loans, which will be made available to qualified borrowers at market rates.
STAR Financial Bank, Community First Bank, Security Federal Savings Bank and First Farmers Bank and Trust will offer loans up to a maximum loan of $500,000, with a minimum loan of $250,000.
“The downtown is the urban and historical heart of Kokomo,” Kokomo Mayor Greg Goodnight said in a statement issued Thursday. “Revitalizing downtown will result in new tax dollars for our community and create prosperity and foster a climate of progress that is favorable to attracting and retaining businesses.”
The loan pool is part of an ongoing downtown revitalization effort between the city of Kokomo and the Greater Kokomo Economic Development Alliance, which includes the Kokomo Downtown Association.
“Last year, the organized committees began developing a Downtown Kokomo Re-development Plan. The plan’s focus is on infrastructure, signage, public and private incentives, an arts plaza, beautification and Riverfront District,” Wiles wrote in a statement.
As part of the public-private effort, the city has established a Riverfront Development District along the Wildcat Creek, offering specific incentives such as special liquor licenses.
In addition, the city is using Economic Development Income Tax revenue to offer other incentives, including a revolving loan fund, façade improvement loans, and forgivable marketing loans.
“This is an excellent example of the private and public sectors working together to create new tax revenue that will benefit our whole community,” said Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance.
The city’s Department of Development will screen applicants for the new loan pool, looking at whether business plans are an “appropriate fit of general development goals of the downtown market area,” Wiles wrote.
Potential borrowers will then be sent to the bank group for review and credit underwriting. Interior and exterior renovations may be structured under separate loans.
City officials said a portion of the funding package could include loans from the federal Small Business Administration and from the city’s business assistance programs.
“The package is one-stop shopping for city, federal and private programs,” said Debra Cook, director of the city Department of Development.
• Scott Smith is a Kokomo Tribune staff writer. He may be reached at 765-454-8569 or via e-mail at scott.smith@kokomotribune.com
Local News
Local banks form downtown loan pool
City, GKEDA continue revitalization efforts
- Local News
-
-
Measles patient was at NFL event
East Coast fans who left the Super Bowl host city feeling good about Hoosier hospitality may have been exposed to something less welcome: The measles.
-
Outreach provides housing to the down-and-out
Dale Bliss tells the story of a man with no money, no job and two kids.
Without any way to pay for a hotel or rent an apartment, the man was living in a tent with his children at a reservoir near Kokomo. He told them it was a family camping trip.
-
Green tech lab opens in Kokomo
A California green technology company has opened a research and development lab in Kokomo and plans to hire as many as 35 people over the next few years, the business announced this week.
-
Main Street conference coming to Kokomo
Following up on its Indiana Chamber of Commerce’s 2011 Community of the Year award, Kokomo received another accolade this week.
-
Howard Co. jail reconfiguration a ‘short-term solution’
With the ever-increasing number of female prisoners at the Howard County jail, local officials are looking to implement a short-term solution instead of expanding the existing facility.
-
Delphi retirees continue fight for pensions
A group of then-Delphi Corp. retirees saw a long road ahead of them when they banded in 2009 to keep hold of their full pensions and benefits.
-
Eastern moves ahead on wind turbine
A packed room of remonstrators Tuesday held little sway over the Eastern Howard Schools board, which voted unanimously to move ahead on a $2.75 million wind turbine project.
-
Board: discipline for accused doctor not strict enough
The Medical Licensing Board of Indiana has rejected a proposed resolution to a Russiaville doctor’s disciplinary case, directing the Indiana Attorney General’s Office to propose a more stringent set of requirements.
-
City to end agreement with Novia
City officials said Tuesday they’re planning to switch providers at the city’s employee health-care clinic this spring, ending a year-old relationship with Novia Health Care.
-
Eastern celebrates graduation rate improvement
The latest graduation rates prove all Howard County schools are offering a quality education, a local superintendent said.
That’s how Tracy Caddell, superintendent of the Eastern Howard School Corp., summed up the figures released Tuesday by the Indiana Department of Education.
- More Local News Headlines
-
Measles patient was at NFL event
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
Nevada Highway Patrol, City Settle Beating Case
Homs Bombardment Continues, Global Outcry Grows
Raw Video: Dog Rescued From Icy Colo. Water
Skip the Coffee Cup and Inhale Your Caffeine Fix
