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DOWNTOWN REBUILDING ASSISTANCE PROGRAM Adopted 3/06/2007 1 INTRODUCTION The City of Lewistons Economic and Community Development Department (ECDD) offers a Downtown Rebuilding Assistance Program to property owners and investors who build new infill buildings on vacant lots along the Lisbon Street downtown corridor. Due to fire and general building deterioration, the Lisbon Street corridor continues to lose more buildings and accumulate more vacant lots. Meanwhile lack of critical mass in commercial development in this area continues to suppress lease prices to the point where rents received are insufficient to cover debt service on the construction of a new building. This incentive program, combined with tax increment financing, will help offset the gap between expected financing costs for new construction and expected rents of the commercial space rented. Funds provided under this program are designed to incentivize developers to build new infill buildings to spur new investment both in the immediate downtown and city-wide. This is a pilot program that will be administered for a period of 18 months (from date of initial Council approval). The program is administered by the ECDD. The goal of the program is to encourage private investment by: • Providing cash incentives on a per square foot basis to developers who build new infill buildings along the Lisbon Street downtown corridor; • providing tax increment financing (TIF) to developers of 50% to 80% (based upon building height) for eligible developments; • eliminating vacant lots in the Lisbon Street downtown corridor; • encouraging responsible building design and construction by requiring buildings assisted under this program to adhere to the Citys proposed Urban Design Guidelines. PROGRAM SUMMARY Purpose: To provide incentives to property owners and investors who build new infill buildings on vacant lots along the Lisbon Street downtown corridor. Duration: Projects funded under this program must be approved within 18 months from the date of program adoption. Eligible Activity: Program will provide cash incentives of $5.00 to $6.50 per square foot for new buildings; TIFs of 50% to 80% (based upon building height) for eligible developments; eligible buildings must be a minimum of three stories (above ground). Applicant Eligibility: Eligible applicants must build a three-story or taller building along the Lisbon Street downtown corridor (Adams Avenue to Main Street); ---PAGE BREAK--- DOWNTOWN REBUILDING ASSISTANCE PROGRAM Adopted 3/06/2007 2 All proposed projects must obtain City Council approval and developers must enter into a Joint Development Agreement with the City establishing the parameters of the proposed project; Eligible building uses include, but are not necessarily limited to: commercial/office, retail, restaurant/hotel, and market rate housing; Buildings must be designed and constructed according to the Citys Urban Design Guidelines. Terms: Cash Incentive $5.00 per square foot for buildings constructed on currently vacant lots along the Lisbon Street downtown corridor An additional $1.50 per square foot (for a total of $6.50 per square foot) for buildings that fill the entire depth of the Lisbon Street block (to either Canal Street or Park Street) Funds will be released only after the building has been issued a Certificate of Occupancy and has been deemed to meet all other requirements of the program described herein. Tax Increment Financing 50% Credit Enhancement TIF for up to 20 years for three-story buildings (with 100% TIF-eligible uses) Additional 15% Credit Enhancement TIF for up to 20 years for each additional story, up to a maximum of five stories (maximum 80% TIF) **Note: All proposed TIFs must be approved by both the Lewiston City Council and the State of Maine prior to designation. Maximum Loans: No per building maximum is established. However, total funding for the pilot program is limited to $500,000.