Revitalization loan funds approved

Jeffrey Libby

Wednesday, Aug. 22, 2001 | 9:28 a.m.

The Henderson Redevelopment Agency on Tuesday approved $500,000 toward loans for new and existing downtown shops as part of ongoing efforts to revitalize business along Water Street.

The program officially begins in late September, but four prospective businesses have already contacted him with questions, Ned Madonia, a redevelopment planner said.

"We're hoping it will stimulate existing businesses to expand, attract new businesses to the downtown and create some new jobs along the way," Madonia said. "It's pretty plain vanilla."

The money is budgeted from the projected $2.1 million in tax revenues city planners expect redevelopment areas to generate in fiscal year 2001-2002.

Loans will be approved by a committee. Most loans will be limited to helping businesses buy equipment, such as tables and chairs if a patio is being added, or for shelving if a kitchen is expanded, Madonia said.

The city will provide about one dollar for every two dollars invested by businesses. All loans will have to be repaid with interest.

Money won't be loaned for capital improvements, such as building additions. The facade improvement program, for which $200,000 was approved in July, will cover some of those improvements.

The redevelopment agency hopes to create roughly one new job for every $35,000 invested. About seven to eight businesses should receive help through the program, Madonia said.

"Many times businesses downtown face fiscal impediments to making improvements," Mayor Pro-Tem Steve Kirk, a redevelopment officer, said. "This will help existing businesses look better and function better. But it's critical to point out that this is not a give-away. We have to have serious businesses who really want to invest in the community."

During the Henderson City Council's regular meeting Tuesday, council members also approved a $4.9 million contract to build a new downtown recreation center.