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<br />. <br /> <br />As redevelopment has progressed in the downtown project <br />area, a series of rehabilitation loan programs have <br />been adopted and applied. Through a buy-down <br />arrangement with Mercury Savings and Loan Association, <br />the Agency can offer commercial rehabilitation loans <br />ranging from $50,000 to $250,000 at 10% interest, 3 <br />points, with a 10-year term and a 25-year amortization. <br />(The Builders Exchange Building and Minter House were <br />shown as projects funded under this program.) <br /> <br />By selling notes totaling $15,000,000 to Wells Fargo <br />Bank, the Agency was able to pass-through its tax <br />exempt status to participants in the form of 8 to 11.5% <br />permanent loans. Loans from this program have ranged <br />from $150,000 to $1,000,000 with a 10-year term and a <br />25-year amortization. Some 20 loans were originated <br />under this program; and projects are in various stages <br />of completion. (The Horton Building and the 400 Block <br />of West 4th Street were shown as illustrations of <br />projects completed under this program.) <br /> <br />. <br /> <br />The Industrial Development Bond Program has been <br />developed and implemented to replace the Wells Fargo <br />Program and provide major tax-exempt loans on a City- <br />wide basis. <br /> <br />The Philipson Building was shown to illustrate a <br />project completed through the sale of an Industrial <br />Development Bond. They are used to fund projects from <br />$500,000 to $10,000,000. <br /> <br />Currently a number of large scale projects have been <br />completed along Main Street, West 4th Street and in <br />other parts of the downtown. However, smaller shops <br />with old, deteriorated facades detract greatly from <br />these neat, professional rehabilitation structures that <br />represent multi-million dollar investments. The Agency <br />has learned that for profit and processing reasons, no <br />lender is willing to participate with the Agency to <br />make available rehabilitation loans under $50,000 to <br />smaller merchants. <br /> <br />. <br /> <br />As redevelopment commences in earnest in the four new <br />project areas, the Agency's inability to offer <br />rehabilitation loans under $50,000 would be a serious <br />handicap. In these areas commercial property consists <br />of retail strips along main arterials with small one- <br />story buildings of 5,000 to 10,000 square feet <br />predominating. <br /> <br />2. <br /> <br />17 <br />