From the NMMS eNewsletter April 2011
At NMMS, we are often asked by communities how they can fund façade improvements. Here are some ideas for your Design Committee on strategies used by other MainStreet towns around the state.
Community Development Block Grants (CDBG) Funds
MainStreet projects in both Downtown Albuquerque and Farmington have partnered with their municipal officials to allocate a portion of the City’s CDBG funds to a façade grant program. In Albuquerque, the Downtown Action Team (DAT) received $166,000 in CDBG funds via President Obama’s American Recovery & Reinvestment Act in 2010. The intent of this one-time funding was to create design and construction jobs that would help to improve commercial building façades. The objective was to encourage small businesses to improve curb appeal and gain additional visibility, ultimately leading to increased business and the need to hire more employees. The Downtown Action Team funded 16 projects ranging from as low as $5,000 no-match grants for new signs to a significant balcony renovation that will cost a total of $26,000 (50/50 match).
The City of Farmington has allocated $200,000 of CDBG funds for façade grants. Farmington Downtown Association administers the façade grant program and offers downtown property owners $2,000 in mini-grants for simple, low cost façade improvements and up to $20,000 grants with a one-to-one match for larger projects.
Contact Chris Goblet at DAT, 505-243-2230, and Elizabeth Isenberg at the Farmington Downtown Association, 505-599-1419, for more information.
MainStreet Revolving Loan Fund (MSRLF)
The MSRLF is available to historic and non-historic buildings in your designated MainStreet district for façade improvements and other renovations such as a new roof or structural repairs. Typical loan amounts are $8,000 to $30,000, and applications are accepted for amounts up to $75,000. MainStreet projects in Albuquerque-Nob Hill, Farmington, Lovington and Hobbs have worked with property owners to finance building improvements using this tool.
Contact NMMS Economic Positioning Program Associate Keith Kjelstrom at 505-454-1187 for more information.
Rural Business Enterprise Grant (RBEG)
The RBEG is available to rural communities under 50,000 in population. Grant funds may be used to finance and facilitate the development of small, private, business enterprises which includes any private business which will employ 50 or fewer new employees and has less than $1 million in projected gross revenues. Grant funds can also be used by making a loan to the business as a revolving loan fund.
Tucumcari received $95,000 in RBEG funds to develop a revolving loan fund for façade improvements, building improvement, equipment purchases or business expansion. Loans are up to $20,000 for businesses in the MainStreet district. Contact Mark Lake from Tucumcari MainStreet at 575-461-3701 for more information. NMMS Economic Positioning Program Associate Keith Kjelstrom is available for assistance with the RBEG application. He can be reached at 505-454-1187.
Sponsorships
For smaller-scale façade improvements, such as a Façade Squad, many MainStreet projects have had good luck with securing sponsorships from local banks, hardware and garden stores, and their City and County. A Façade Squad project can be accomplished for about $2,000.
Clovis’ second façade squad was self-initiated and successfully leveraged a $500 donation from the Home Builders Association of Eastern New Mexico to paint four properties downtown. Clovis MainStreet took the donation and approached local equipment rental and paint supply stores and requested them to “co-sponsor” by selling product at cost and/or making donations. They received over 50 gallons of paint, two bucket lifts and painting supplies. They estimate the value of these donations alone to be over $2,500. About 25 volunteers showed up and four local restaurants donated food and drinks for lunch. Total value of volunteer hours, food and supplies are estimated at $5,000. Contact Robyne Beaubien at Clovis MainStreet, 575-309-8370, for more information.