PROGRAM ANNOUNCEMENT FOR DOWNTOWN DU QUOIN BUILDING OWNERS – INCENTIVES OFFERED FOR NEW ROOFS
The Du Quoin Community Development Corporation (DCDC) and the City of Du Quoin announce a joint program to provide major incentives for roof replacements for buildings in downtown Du Quoin. The program anticipates new 25-year roofs for 10 buildings in 2021: five in the spring and five in the fall. Program continuation after 2021 will depend on public demand and initial program success in the coming year.
HOW IT WORKS
The number one complaint of owners of downtown buildings is failing roofs. Good roofs are essential in protecting other building systems and contents. This program combines Tax Increment District (TIF) awards of up to 60% with DCDC unsecured loans of up to 20% and owner investment of 20% to cover the costs of the new roof.
The average size building in downtown Du Quoin is 3,630 square feet. The typical financial structure for a new 25-year roof on such a building is $3,630 provided by the owner, $3,630 in a DCDC loan, and a $10,890 TIF award. The total new roof cost of the average building is $18,150.
The program expects the owner to participate financially in the program and requires such private funds to be in place prior to the initiation of roof work. The DCDC loans are not secured by a mortgage but by a corresponding TIF guarantee so any existing loans on the building are unaffected. The loans are for up to 36 months at 5 percent. Typical monthly loan payments will range from $109/month to $120/month depending on differing circumstances. Borrowers must agree to making monthly payments by automated clearing house (ACH) transfers. Such loans are made possible by a grant received by DCDC through USDA- Rural Development. Loans are offered to assist building owners but are not a requirement to participate. Further, each specific loan must receive the concurrence of USDA – Rural Development which means that sufficient information must be submitted by the borrower to permit such a review. This will involve submission of a supplemental loan application to DCDC which contains corresponding financial information.
Not all roofs will cost the same. If roof costs exceed $18,150, maximum TIF benefits will be $11,000 and maximum loan amounts will not exceed $4,000. All differences will be made up by owner injection. If roof costs are at or below $18,150 TIF benefits will equal 60 percent of the costs and corresponding loans may be up to 20 percent of the costs. Any structural work needed to support the new roof are considered part of the total project cost.
Bids will be solicited from roofing contractors in groups of five buildings or more. Building owners may select the lowest qualified bidder for their building or mutually agree to award the contracts as a group to the lowest qualified bidder. The approach is designed to maximize cost efficiencies to the extent possible. Roofing contractors must demonstrate the ability to work legally in Illinois, provide appropriate insurance as defined by DCDC, and provide references.
Roof contracts will include the requirement to provide partial and any final lien waivers as appropriate to the situation. Roof work must be completed in a timely manner.
The DCDC Board will select buildings to participate in the program from all applications received by January 29, 2021 in envelopes addressed to the Du Quoin Community Development Corporation. Owners of multiple buildings in the targeted downtown area are welcome to submit a separate application for each building. The program narrative and application will be posted on the City of Du Quoin’s webpage. Printed application forms can additionally be picked up at the Du Quoin City Clerk’s Office located at 302 East Poplar Street, Du Quoin, Illinois 62832. All DCDC Board decisions are final. Jeff Ashauer is available to assist applicants and can be reached at 618 318 3983.
QUALIFICATIONS TO PARTICIPATE
1- The applicant must be the legal owner of the building, provide a legal description of the subject property, and provide evidence that all real estate taxes are paid on the subject building. The applicant will also be asked to provide a history of the business located within the building.
2- The building must principally be used or intended for use for commercial purposes and located in downtown Du Quoin as defined by the area from Hickory Street to Washington Street and Park Street to Poplar Street.
3-Priority is given to buildings occupied by a business. Applicants will be ranked by use which will include: A) retail, B) personal services (barbers, beauty shops, etc.), C) professional services (finance, real estate, legal, medical, etc.), D) food and beverage, E) buildings with mixed commercial uses, and F). all other uses. Only buildings occupied by a business will be selected for the first group scheduled for spring 2021. Unoccupied buildings may qualify for fall 2021 (and are encouraged) but strong evidence and written commitments concerning immediate commercial occupancy upon completion of the roof work will be required.
4-The applicant must demonstrate the size of the building and the current condition of the roof. Any documentation identifying the condition of the roof in question will enhance the priority of the application. Please note that any underlaying structural deficiencies with the roof support system are a part of the project costs. Applicants must provide evidence of the financial capability to complete an entire project.
5-Buildings determined by DCDC to have local historic or architectural value will receive a higher priority.
6- The initial ten buildings selected for the 2021 program will be divided into two groups with the buildings needing immediate roofing attention placed in the first group. DCDC may select to accept more than ten applications for 2021 and create a reserve list should a selected building project not proceed for any unforeseen reason.
7- The program expects different circumstances between each of the applications. DCDC is prepared to assist in the application process to customize maximum benefits to each applicant.
DCDC Roof Program Application fill-able pdf
DCDC Roof Program Application MSWord[/vc_promo_box]