Downtown Revitalization Loan Program (DoRL)

DOWNTOWN REVITALIZATION LOAN (DoRL) PROGRAM

The Downtown Revitalization Loan Program (DoRL) assists business property owners in Downtown Mason City to rehabilitate buildings, update facades, and bring new vitality to Downtown. Eligible properties are zoned Z5, Central Business District (plus a few on the north and west edges of the area not zoned Z5; see map below). If you are unsure if your property is eligible, contact the Development Services Department.

PROPERTY ELIGIBILITY: Owners of commercial, mixed-use, and duplex/multi-family properties within the designated district (see map). An owner may apply on behalf of tenants. Property tax-exempt properties and single family dwellings are not eligible. Note: Meeting eligibility requirements is not a guarantee of approval.

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. Proof of match must be provided. 

LOAN FORGIVENESS: The loan is forgiven at a rate of 1/84^th 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, provided that the new owner  signs an Assignment Agreement and assumes a second 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: Projects must raise assessed property value, improve aesthetics, or both. Funds may be used for either exterior or interior improvements; however, interior improvements generally must focus on making a building saleable or leasable. Exterior improvements must meet Z5 requirements for materials; historic facades shall be maintained to the degree possible. Approved projects must result in an increase in assessed value, add to the value of Downtown, and improve Downtown aesthetics.

OTHER FINANCING: Applicants are required to provide matching funds from other sources. The City will accept a subordinate position if the applicant is also entering into a mortgage loan from a financial institution.

PROCESS: Applications will be reviewed by City staff for completeness; incomplete applications will be rejected. All applications will be scored by the Grant and Forgivable Loan Review Committee. Applications must meet a minimum score to continue to be eligible. After scoring, eligible applications are sent to the City Council for final approval. If approved, the applicant must enter into a Forgivable Loan Agreement with the City. Funds are disbursed when improvements are complete, paid for, and accepted by the City. The applicant must accept a mortgage for the value of the loan and sign a promissory note. The forgiveness period begins on the date the loan is disbursed. Request the Application Instructions and Program Requirements for detailed information.

CONSTRUCTION REQUIREMENTS: The City retains the right to inspect the improvements upon completion to ensure that they are completed in accordance with the Forgivable 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: 

DoRL Application

DoRL Brochure

 


Application Instructions & Program Requirements

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 
(641) 421-3626

The Pappajohn Entrepreneurial Center - Small Business Development Center
North Iowa Area Community College
(641) 422-4111
www.niacc.edu/pappajohn

Iowa Economic Development Authority
(515) 725-3000
www.iowaeconomicdevelopment.com