City of Cresco to work with CUSB/Thomson Family on Historic Dowtown Rehab funding
Tue, 08/29/2023 - 11:05am admin
CRESCO - When opportunity knocks, people will hopefully listen!
CUSB Bank and the Scott and Stephanie Thomson Charitable Foundation are wanting to partner with the City of Cresco and Cresco Industrial Development Corporation (CIDC) to create a $270,000 revolving loan fund for existing business owners to improve and rehabilitate historic downtown Cresco buildings.
“In celebration of CUSB’s 135th, my wife and I sat down and talked about what we could do to help downtown historic Cresco,” said Scott Thomson, CEO of CUSB, who attended the August 21 city council meeting with the announcement. “With the fund in place, $270,000 will be available to use as a revolving loan fund, hopefully to fix the facade of a building, add apartments or needed additions. Hopefully this will bring more people to live and use our beautiful downtown. We’re really excited about this! It’s a nice shot in the arm for Cresco.”
Many of the details are still being worked out, but the plan is for the main four downtown blocks, especially for buildings where second floor space is currently available looking to add much needed apartments. It was uncertain if the funds would be made available only to those four blocks, or if it may be expanded to include “all downtown buildings” possibly on a case-by-case scenario.
According to the paperwork received by the council, the purpose is to: “incentivize and support downtown businesses that wish to refresh, remodel or make structural improvements to their buildings.
The maximum loan amount would be $90,000 and be less than 50% of the total project cost. Terms would likely be monthly payments for the first two years of principal only at 0% interest. For years three-to-five, the rate would be 3.0%. The loan would then have a balloon payment due in five years and the loan amortization could be 10 to 12 years. To keep funds available for new applicants, those taking part would be asked to seek other financing when the payment is due in the five years. A small application fee of only $150 will be asked, and the application process will be administered through CIDC with a five member review committee.
“We’re hoping the committee will consist of representatives from CUSB Bank, Cresco Bank & Trust, the City, Thomson Charitable Foundation and CIDC,” added Thomson. “We’re just hoping that the money will be used and we can keep this funding rotating.”
Thomson noted that Jason Passmore of the Chamber and CEDA has been a “big help” in getting this in place.
Council member Amy Bouska did have some concerns about which buildings/owners can participate in the program, but Thomson and Passmore both assured her that they are still working out all the details.
Members of the city council still went on to approve the city helping with the Historic Downtown Cresco Revolving Loan Fund, through administration work.