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
-
-
Students petition to keep daycare at IUK
A group of Indiana University Kokomo students is petitioning the university to reconsider shutting down an on-campus childcare center.
-
Walk participants offer prayers to heal community
On Jan. 26, 48-year-old Argena Williams was shot in the head at the corner of Taylor Street and Apperson Way during a shooting spree that left one other dead and two more wounded.
-
Party atmosphere in Indianapolis
A wild and record-setting Super Bowl week was capped Sunday with the New York Giants winning their fourth title game. But the host city of Indianapolis was also a winner.
-
Council puts off budget cut decision
Miami County Council once again last week postponed any decisions on cutting nearly $900,000 from the county general fund after the state issued a mandate requiring the budget reduction.
-
Kokomo starting sewer project at Indian Heights
Construction work to increase the capacity of the sewer line leaving the Indian Heights subdivision is set to begin today.
-
Public Eye - Sunday, Feb. 4, 2012
Not running
Republican Joe Pencek announced Jan. 24 he will not be seek a third term on the Howard County Council in an at-large position.
-
Information technology company opens in incubator
A Kokomo information technology startup has opened an office in a business incubator run by the Greater Kokomo Economic Development Alliance.
-
Weather helps host city draw record attendance
The out-of-season warm weather in the Super Bowl’s host city has created an envious problem: Record crowds descending on the city’s downtown.
-
Venue change doesn't deter crowds from Chocolate Celebration
It was a different shell for Kokomo’s biggest candy event, but the chocolaty tastes and aromas inside were the same as always.
-
Walk will honor shooting victims
Following a string of random shootings that left two Kokomo residents dead and three others hospitalized, several members of the shaken community have been moved to organize a Peace Walk to pray for the victims and their families.
- More Local News Headlines
-
Students petition to keep daycare at IUK
US, UK Pressure on Syria; More Homs Violence
Raw Video: Mass Killer Wants Medal, Freedom
Few Answers in Death of Sons of Missing Utah Mom
Court Strips Contador of Tour De France Title
Runaway Goat Leads Police on Wild Chase
And the Winner for Best Super Bowl Ad Is...
Raw Video: Deadly Helicopter Crash in Australia
Raw Video: Smoke, Purported Gunfire in Syria
Romney Latest Poll to Join Let-me-explain Club
Blast Kills Husband of Missing Utah Mom, 2 Boys
Obama: US, Israel Will Work Against Iran Nukes
NJ Museum Finds 19th Century Recording
Snow Causes Disruptions in Much of Europe
Clinton: Vetoed U.N. Syria Resolution 'travesty'
Romney Picks Up Decisive Win in Nevada Caucuses
Gingrich Renews Vow to Campaign Until Convention
Romney Rolls to Easy Win in Nevada GOP Caucuses
Raw Video: Missing Family Found Alive in Ore.
Police Clear Tents From Occupy Site in DC
Killer of Fla. Girl Found in Landfill Gets Life
