Kokomo Tribune; Kokomo, Indiana

Local News

March 11, 2010

Local banks form downtown loan pool

City, GKEDA continue revitalization efforts

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

Text Only | Photo Reprints
Local banks form downtown loan pool
by By SCOTT SMITH , , Thu Mar 11, 2010, 10:36 PM EST
Local News
  • In the know on the new bus service

    Local radio personality Allan James and Kokomo Mayor Greg Goodnight are expected to be among the dignitaries gathered for Kokomo’s first public bus ride in more than 40 years Tuesday, and Kokomo is abuzz over the new red-and-green trolleys.

    September 5, 2010

  • spice Putting the pinch on Spice

    A synthetic herb mixture that is sold as incense is causing quite a stir with state and local legislators.

    State lawmakers are preparing to present legislation that would ban the synthetic marijuana substitute known as K-2 or Spice, which is generating public health concern across the country.

    September 5, 2010 1 Photo

  • County ups GM's assessed tax value

    The Center Township Assessor’s office has notified General Motors that it has changed the personal property assessed value on equipment the company filed in May.

    September 5, 2010

  • reading test 02 Educators working to meet new reading requirement

    One wall at Western Intermediate School is covered with Post-It notes. Each note represents a student and his or her progress in reaching reading proficiency.

    September 5, 2010 1 Photo

  • Kokomo council to decide on 2011 budget this week

    More than $1 million in federal grants will allow the city of Kokomo to cut local spending while maintaining staffing levels for police and firefighters, according to Kokomo Mayor Greg Goodnight’s proposed 2011 budget.

    September 5, 2010

  • Kokomo to host hundreds of visitors this month

    There will be hundreds of visitors to the Kokomo area throughout the month of September with the first of several events taking place this weekend.

    September 5, 2010

  • Public eye - Sunday, Sept. 5, 2010

    September 5, 2010

  • titan new tech school Taylor celebrates grand opening of the Titan New Tech High School

    Freshmen in Steve Dishon and Justin Palmer’s Taylor High School digicom class sit at tables of four, rather than desks, and each student has a laptop computer in front of him or her.

    September 3, 2010 1 Photo

  • Chrysler deal aids budget process

    The settlement with Chrysler over the assessed value of personal property taxes has changed the area financial landscape as local taxing units finalize the 2011 budgets.

    September 3, 2010

  • Area schools receive stimulus money

    Howard County public school corporations received nearly $2.7 million in stimulus funding, as part of the Education Jobs Fund recently passed by Congress.

    September 3, 2010

Featured Ads
Facebook
Kokomo Tribune on Facebook
More kokomotribune.com
KT Twitter Updates
Follow me on Twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Popular Searches
Powered by Local.com
Community Calendar
Loading…
Events by eviesays.com
AP Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.