Rent to Buy Program
Leasing Assistance Program – Subsidizing private rental rates in downtown buildings to encourage new or expanded leasing.
Purpose: In lieu of creating a publically held incubator space in the Downtown CID that would compete with private developers, this program will provide funding, at the CID board’s discretion, to subsidize rental rates in buildings located within the boundaries of the Downtown CID for certain approved projects.
Administrative Procedures: Downtown CID has created an application to be completed by business owners requesting financial assistance from the CID. Applications will be reviewed by the staff of MAEDC on a regular basis. MAEDC staff will then make recommendations to the CID board as to potential awards based on the criteria outlined below. Funds will be issued on a reimbursement basis. Checks will be made payable to both the property owner as well as the business owner and delivered to the business owner.
Project Award Criteria: Eligible projects may receive an amount up to 50% of the monthly lease rate for 12 months and up to a total maximum aggregate amount to be determined on a case by case basis. Tenant must at minimum sign a 6-month lease. Applicant (tenant) must turn in signed lease with application. Rental reimbursements begin on month 2 of the lease. A point system will be used to score applicants based on the following criteria: financial stability of the business, completeness and potential success of the business plan and financial projections, ability to increase taxable sales within the CID, ability to increase retail activity within the CID, ability to increase foot traffic within the CID, ability to retain and create quality jobs. Start-ups will be eligible but growth opportunities for existing businesses interested in starting an additional business will be given priority.
Project Monitoring: An MAEDC staff member will do a physical examination of the business and interview the manager on site or owner if available. The staff member will complete a certification of employment and operation. MAEDC will forward the written certifications from the Tenant and Landlord, as well as MAEDC’s completed certification to the Chairman of the CID board. The Chairman of the CID will review the certifications and authorize the issuance of payment.