Corridor Revitalization Loan Program (CoRL)
Mason City Corridor Revitalization Loan Program (CoRL)
CORRIDOR REVITALIZATION LOAN (CoRL) PROGRAM
The Corridor Revitalization Loan Program (CoRL) assists business property owners in the older commercial areas of Mason City to rehabilitate buildings, update facades, and bring new vitality to these corridors. Eligible properties are zoned Z4, Multi-use District, and are located along North Federal and the older commercial area of South Federal Avenue. Also eligible are Z4-zoned properties along the one-way pair of IA Highway 122, mostly between South Monroe and South Pennsylvania avenues (see map below). If you are unsure if your property is eligible, contact the Development Services Department.
PROPERTY ELIGIBILITY: Owners of business, mixed-use and duplex/multi-family properties zoned Z4 along the designated commercial corridors (see map). An owner may apply on behalf of tenants.
LOAN AMOUNT: Up to $30,000, matched dollar-for-dollar by the applicant. The match may consist of cash supplied by the applicant, or from a bank, grants or other financing sources.
LOAN FORGIVENESS: The loan is forgiven at a rate of 1/84th of the total principal per month and is totally forgiven after 84 months (seven years). The owner must maintain the improvements during the entire loan forgiveness period. Ownership may be transferred during the loan forgiveness period; the new owner must sign a promissory note and assume a mortgage for the loan balance.
DEFAULT: Failure to maintain the improvements during the loan forgiveness period results in repayment of the entire un-forgiven loan balance, plus interest accrued at a rate of 4 percent.
USE OF FUNDS: A maximum of $20,000 may be used for interior improvements. A portion, if not all, of any loan must be used for exterior improvements, unless waived by the Loan Review Committee. The amounts allowed for interior or exterior improvements will be determined at the time of approval. Historic facades shall be maintained to the degree possible.
OTHER FINANCING: Applicants are required to seek other sources of matching funds. The City will accept a subordinate position if the applicant is also entering into a mortgage loan from a financial institution.
PROCESS: 1) The owner completes the application materials, providing plans and construction estimates in sufficient detail to show the planned improvements. All information related to financing the project (owner cash, bank financing, etc.) shall be provided. 2) The application is reviewed by the Loan Review Committee, The applicant meets with the Committee to discuss the project and negotiate the amounts used for the interior or exterior. 3) Loans recommended for approval by the Committee must be approved by the City Council. 4) Upon approval, the applicant must sign a Loan Agreement. 5) Funds are disbursed when improvements are complete and accepted by the City. The applicant must accept a mortgage for the value of the loan and sign a Promissory Note.
CONSTRUCTION REQUIREMENTS: The City retains the right to inspect the improvements upon completion to ensure that they are completed in accordance with the CoRL Loan Agreement. In addition, the City may inspect any time during the loan forgiveness period, after providing at least 48 hours’ notice, to insure that the improvements are being maintained.
APPLICATION: Application materials are available from the Development Services Department or at this link:
DETAILED PROGRAM GUIDELINES
See Property Eligibility criteria, above. To positively determine if a property is eligible, contact the Development Services Department.
Development Services Dept.
City of Mason City
The Pappajohn Entrepreneurial Center - Small Business Development Center
North Iowa Area Community College
Iowa Economic Development Authority