A new potential grant program that would offer financial assistance to downtown building owners was met with mostly warm reception by Decorah City Council at Monday’s council meeting.
The program, called the Downtown Economic Development Grant Program, was put together and presented by City Manager Travis Goedken to incentivize building owners to renovate and repair their buildings. The program would be geared at two types of projects — exterior work like windows, doors or brickwork, and the creation/restoration of upper story residential units. The grant cap for exterior projects would be $10,000, with a 3-1 match — meaning the city would reimburse the appliant $1 for every $3 spent on an approved project up to the $10,000.
For upper story conversion or renovation, the cap would be $25,000, with the same 3-1 match.
Goedken informed the council this program would be funded on an annual basis. Additionally, the grant amounts could be awarded in full to one recipient or split between several recipients. He also suggested the city could finance the program through future Tax Incremental Financing, but it would take time to build up the balance. Goedken also suggested discretionary hotel/motel funds as another source of funding — those funds have a $20,000 balance this fiscal year.
According to Councilman Kirsten Olson, who works closely with the Decorah Chamber of Commerce, the chamber met Friday and is fully on board with this program.
Councilman at Large Ross Hadley suggested Goedken share the program with the League of Cities at their next meeting to show Decorah is making strides to support the city’s commercial tax base.
Councilman Randy Schissel was the lone dissenter.
“I hate giving money away,” he said. “I would be more interested if we could loan money at a very low interest rate. There is little or no return on this.”
No action was required by the council Monday night, but they did request Goedken draft a formal version to be considered at a future council meeting.
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