09. Request for Proposals - Commercial Rehabilitation Loan ProgramI e Ci[i� of Kalispell
Incorporated 1892
Planning, Economic & 248 Third Avenue East
Community Development Department
P.O.406) 758-7740
.O. Box 1997
(406) 758-7739 (office fax)
Kalispell, MT 59903-1997 June 16, 1995 (406) 758-7758 (City Hall fax)
Request for Proposals
Participation in the Commercial Rehabilitation Loan Program
The City of Kalispell would like to invite your bank to submit a proposal for participation in the Commercial
Rehabilitation Loan Program. The loans are to stimulate capital improvements to downtown properties,
improve the exterior appearance of properties, and retain and create employment opportunities in the
downtown. The City will enter into an agreement with the bank where the City will subsidize the loan rate
down to 3% using Tax Increment Funds. The bank will specify an amount of money committed to the
program for use as principal for the loans. The bank will also service the loan accounts, determine the
credit worthiness of the applicants and assure the City there will be no losses incurred on the City's
behalf. When the bank closes on the loan application, the City will forward to the bank the difference
between the quoted rate and the 3% loan rate made to the applicants.
History of Program:
Beginning in June of 1980, the City has subsidized the interest rates to 3% to help stimulate private
reinvestment by downtown business people, professionals, and property owners in financing capital
improvements to their businesses and properties. The program has proven to be a highly effective
partnership in stabilizing and improving the downtown area through the use of Tax Increment Funds. A
current Status Report is attached showing the history of the loan program and the leveraging achieved
through the public/private partnership. The City's goal is to continue the program in a similar format that
will achieve the same positive results.
Specific Items to Include in the Proposal:
Attached is a sample agreement identifying the program's procedures, guidelines, and commitments
made between the City and the Bank. The specific items that need to be identified in the proposal are
indicated with an underlined blank.
Submission of Proposal and Council Action:
Please submit your proposal by 5 pm, July 5, 1995, to Debbie Gifford, Clerk of Council, at her office in
City Hall, or mail to P.O. Box 1997, Kalispell, MT 59903.
It is anticipated the City Council will review the proposals at their July 10, 1995, workshop and authorize
the City Manager to enter into an agreement at the July 17, 1995, City Council Meeting.
Should you have questions, please call Ross Plambeck at 758-7742. Thank you for your attention.
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Stat: Report/Combined 6/16/95
A Summary of the History of the Program since 1980
APPLICATIONS & APPROVALS
Number Submitted to Date: 323
Applications Withdrawn/Denied: 48
Number of Loans Closed Q Norwest: 270
New Businesses in the CBD: 84
FUNDING & LEVERAGE ANALYSIS
Total Loan Amount Leveraged: $4,313,244.20
Total Interest Subsidy Expended: $1,138,116.61
Total Private Capital Invested: $12,352,812.00
Percent of Private Investment Leveraged: 1085%