The city has given away more than $208,000 since the start of 2008 through its two small business development grants. The money was spent to beautify eight storefronts with new façades and to offer a helping hand to 19 start-up enterprises.
The city’s Commercial Façade Program focuses on the buildings and neighborhoods along the three Main Street Corridors — James, East Dominick and West Dominick streets. The program was developed by the Department of Community and Economic Development and the Rome Main Streets Alliance Design Committee to remove blight conditions, fill vacant buildings and encourage additional private investment in the downtown, said department head Diane Shoemaker.
The program is funded by the federal Community Development Block Grant dollars and the New York Housing Trust Fund’s Main Streets program. Owners can qualify for up to $25,000 for renovations to building exteriors ranging from a fresh coat of paint to new windows, trim or cladding. The grants cover up to 75 percent of the repairs. The applicant contributes the rest. Façades must be maintained for at least seven years and owners may be required to pay back a prorated portion of the grant if the building is sold within that time period.
Signs, awnings, exterior lighting and landscaping are all elements that can be altered or added to improve the look of the façade. In an effort to encourage people to live downtown, some building interiors are eligible, but only if affordable housing is included in the project.
"The new façades provide an obvious and immediate benefit to business owners; certainly, eye-catching storefronts draw attention and customers," said city planner Matt Andrews. "Yet the program ultimately aims to enhance the downtown area as a whole. Improving the streetscape attracts new developers and investors to the downtown area. Moreover, many of the improvements help pedestrians feel safer both walking and shopping."
A walk along North James Street, where many of the projects have taken place, demonstrates the impact the new façades have on the appeal of the street. "The new business façades have enlivened North James Street," said Joanne Bush, chair of the Main Streets Design Committee. Bush owned a floral shop at 411 N. James when she first got involved with the committee. "The new and vivid palettes of buildings like Spressos, DiBella’s Fancy Fruit Baskets, Big Daddy’s Sandwiches, Forget-Me-Not Cafe, Tony’s (Barone’s) Shoe Repair, just to name a few, have given North James Street a sense of freshness and energy." She continued, "Charming storefronts invite pedestrians to walk along the street, enjoy the colorful displays, and peek into shop windows."
Created by Mayor Joseph A. Griffo’s administration in 2000, what was then the Job Addition and Retention program was renamed under Mayor James F. Brown as the Rome Entrepreneur Assistance Program (REAP). It continues to offer financial and technical assistance to new and expanding businesses within the commercial corridors. "Facilitating job creation and the establishment of viable businesses in target areas within the city has been an ongoing mission — a mission that has undergone many transitions towards addressing Rome’s economic development needs," said Shoemaker.
The program bridges the financial gap for business start-ups and expansions. Though the program started only with grant money, this year REAP is providing eligible applicants with both loan and grant funding. "Poor management, insufficient capital and a lack of planning are some of the reasons why businesses fail," said Shoemaker. "Our goal is to use CDBG funding to help them develop a solid plan and then help provide the necessary capital to put the plan into action." Not all of the businesses assisted have survived, but according to Shoemaker, the program has a success rate of over 60 percent since its inception.
In order to further aid the development of small businesses and microenterprises, REAP has been re-designed to offer more tools so that each business can realize their full potential. The program now includes the establishment, stabilization and expansion of small businesses of up to 100 employees within the downtown and Brownfield Opportunity Area (BOA).
Downtown development and BOA grants up to $5,000, accompanied by small business loans up to $40,000, will be available to those businesses that fulfill job creation or retention national objectives or qualify as low- to moderate-income micro-enterprise owners. In addition, a green innovation grant of up to $10,000 will be accessible by businesses that manufacture or market a product or service recognized in the green sector economy.
The city does not monitor whether a business closes after receiving the REAP or façade grants.
"The benefit of the commercial façade program is to the neighborhood," said Shoemaker. "While the building owners or business owners may benefit from the rehabilitation, the façade program is considered an investment in the target area neighborhood — not a business or building owner. Improved properties help businesses attract more business and reduce blighting conditions which attract crime and further disinvestment in neighborhoods.
If a property is improved, and a business goes out of business, the logic is that the building will be ready for a new business to occupy the building. The building will be more marketable, and is less likely to remain vacant." This year, more care is being taken with the money, as owners are now required to own the building for seven years. If they sell the building, they may be required to pay back a pro-rated amount to the program. The city may elect to agree to transfer the remaining lien to the new property owner. This is not a requirement of the federal government, and was not a requirement of the program in previous years.
Federal requirements mandate that the city monitors the REAP program for at least the first year, and the city continues to monitor them so their status can be included in annual program updates. "If the business is required to create jobs, the applicant signs a promissory note, and the city monitors that the job was created," said Shoemaker. "If the business goes out of business, it is the decision of the Corporation Counsel if the city wants to attempt recovery of funds. The federal government does not require that funding be recaptured, she said, and noted that "if the business goes out of business, the funds may not be there to recapture." The federal requirement is that at least one job for every $50,000 in funding.
As part of the application process for both programs, the city was not doing credit checks, said Shoemaker, but noted that this has changed for 2009. The programs have always required a business plan, lease or property ownership and an owner’s match for approval. That match is 25 percent of the project cost up to $7,000 in the target area and $3,000 outside the target area.
The city Neighborhood Improvement Program has been helping homeowners make needed upgrades, and is now getting its own. "Enhanced NIP aspires to improve the sustainability and vitality of our neighborhoods — one house at a time," said Shoemaker.
The original NIP was designed to provide assistance to low- and moderate-income families for necessary repairs. For over 25 years, it provided short-term assistance for improvements to meet building code standards or to make repairs in the face of emergency situations. The enhanced program is designed to provide long-term assistance in partnership with federal and state government, the Affordable Housing Corp. and Mohawk Valley Community Action Agency.
Working with the Community Development Advisory Committee, the Department of Community and Economic Development expanded the program with an eye toward energy efficiency, with the ultimate goal of making it more affordable for families to stay in their homes. "In concert with our recent Neighborhood Stabilization Grant Initiative, we feel we are taking proactive steps in the prevention of foreclosures and the reduction of our local carbon footprint," said Shoemaker.
The enhanced program is funded the U.S. Department of Housing and Development’s CDBG program as well as the Affordable Housing Corp. For 2009, the city is also partnering with the state and Mohawk Valley Community Action to enable recipients to receive additional benefits through their energy assistance and weatherization programs. Income-eligible applicants who agree to a forgivable 10-year mortgage can qualify for up to $30,000 in weatherization and other energy-related improvements. The mortgages are zero interest with no required monthly payments, provided that the family does not sell the house for the duration of the mortgage.
The program aims to lower homeowners’ energy bills by 40 percent. According to Christian Mercurio, Community Development Coordinator for the city, this goal is realistic because the homes are mainly older — 60 to 100 years old. Such homes often are not efficiently wired and insulated, he said.
Furnace improvements, ensuring proper wiring, air sealing, and insulation improvements can generate dramatic savings on energy bills, ultimately recapturing 40-50 percent of the mortgage value. More importantly, he said, the value of these homes will increase considerably.
Simply increasing individual home values is not the ultimate goal of the program, said Mercurio. "We’re not just fixing houses. The real concern is "the health and vigor of the entire neighborhood." Part of the repairs will include façade improvements, which will improve the look of the neighborhood as a whole. Increasing one home’s value can help perk up the value of surrounding homes. In addition, the program provides job opportunities for contractors, particularly contractors proficient in creating energy efficient homes.
"Programs like this double the job opportunities for contractors," said Mercurio. "These programs are accepted by economists as tools for stimulating local economies, and by scientists as a way to decrease greenhouse gas emissions." In the long run, the goal is to create more sustainable neighborhoods, both environmentally and economically.
To apply for these programs, call the city at 339-7643.
