Community Commercial Advantage Program
In 2015 the City of Dayton unveiled its Community Commercial Advantage Program (CCAP) to offer incentives for businesses to start up or relocate into Dayton’s Central Business District. The Program has been well received, lending support to new businesses such as Kate’s Catering, NKY Design, the Purple Poulet, Gents, Blue Ridge, and Single Batch Design.
CCAP consists of four programs geared to help new and current businesses with property acquisition, vacancy, structural improvements and aesthetic improvements. The program was designed to be updated yearly to meet the demands and current market challenges in enhancing the City’s Central Business District.
The following is a list of policies and applications that are applicable to Dayton’s CCAP Program. Decisions for granting the awards should meet these policies unless there are specific and demonstrable reasons for exemption, which would be the responsibility of the City Council to rule on. Each program has an individual purpose with corresponding regulations that are unique to said program and are not the subject of these policies. Funding for this program runs on a calendar year, therefore funding is limited for each program. CCAP is an evolving program and all policies are subject to change as determined by Dayton City Council. The CCAP is subject to review and can be modified based on effectiveness, use and demand.
Please contact the Main Street Director or City Administration (859-491-1600) to schedule a meeting to find out if you qualify for any of the program categories. Failure to follow the policies, guidelines, or application requirements may result in a rejected project.
CCAP Program Policies
Application: Every applicant must thoroughly fill in a general program application and attach a detailed project proposal. Both the application and proposal should be submitted to the Dayton Main Street Manager. Each program is for property owners or business owners; each type will require specific supplemental documentation for the application. Applicant should also be aware that upon submission of an application the applicant becomes subject to a criminal and financial background check.
Review of Request: The application with the project proposal should be submitted to the Main Street department for review. Once all requirements are met or planned to be met a submission will be submitted to Council for review and to allow for proper departmental oversight. It is a general policy for the applicant to agree to these policies and each program’s sub-polices. Each application will be reviewed in the order in which they are received. All reviewed applications are subject to be approved with or without conditions. Once a project is approved, all applicants will sign a grant contract with the City. Said contract will contain the same compliance requirements as the policies.
Regulatory Compliance: Every proposed project shall be in compliance with zoning/building/health/fire codes, air quality codes, plus any other applicable statues and regulations. The applicant receiving the award will not have other outstanding findings and orders, regardless of their location, which would threaten the success of the proposed project. There should NOT exist any code citations against any subject property under current ownership within the past 12 months from the application date.
Outstanding Fines and Bills: There shall be no outstanding, unpaid environmental fines, orders, taxes (including income and payroll taxes), utility bills, or fines, for the applicant either at this project’s location or at other locations. This will help ensure the ability of the applicant to complete the project successfully.
Financial Stability: The project and applicant will demonstrate that they are financially stable and that the award will fund a project that can be completed successfully in order to further the goals and objectives set by Council.
Prior Incentive Awarded: The request for the incentive will include a statement regarding any past awards or awarded incentives. It is a general policy to give a higher priority to applicants that have received no incentive previously.
Reimbursement: All awards are distributed after submission of projects’ invoices, receipts and any other proof of purchase. Applicants are encouraged to submit proof of purchases as they are received. This will assist each project with cash flows and financing. Whereas the rental abatement program, awards will be reimbursed to both the tenant and the property owner on a monthly basis. Recipient of said award should expect payment no more than 60 days following submission of required documents and receipts. Please note that every effort will be made to reimburse the applicant as soon as possible.
The Award Term
Terms: All programs are set on a three (3) year term. Terms begins on the date the project is approved. Projects are to be complete within the time frame that was agreed upon within the contract.
Term Activities: During the three (3) year term, applicants are required to make progress towards greater economic impact. They are also required to schedule quarterly meetings with the Main Street Manager to discuss expectations, progress, and program concerns.
Reporting: One year following the fund reimbursement of an approved project the applicant is responsible for reporting specified statistics and outcomes of the program to the Main Street Manager. Programs with projects lasting longer than one year will report to the Main Street Manager for their review of the applicant’s progress. The Main Street department will review the project and its accomplishments and report to Council for the purpose of review and departmental oversight.
Inspections: Property Inspections by City and/or County Officials are mandatory for all “Proposed Projects” and “Approved Projects.” At a minimum inspections will be scheduled to take place before a “Proposed Project” is approved. They will aslo be scheduled before and after an “Approved Project” has taken place. Inspections can also occur at any time while under contract.
Accountability: Any applicant awarded project funds from this program will be accountable for compliance with the terms in these policies and any other terms as determined by the City Council. For example, the firm benefiting from the incentive must be the same firm that commits the investment; a third party cannot comply.
Non Compliance: If at any time, an applicant is deemed non-compliant, the applicant may have his grant award suspended or be liable to repay any and all funds under this grant. Should repayment of grant award funds be required, the City may place a lien on any real or personnel property belonging to the applicant. An applicant should not be penalized, however, if the applicant can demonstrate that adverse and generally accepted negative economic conditions impacted the ability of the applicant to complete the project. However, this should not include poor management or factors that could have been prevented or foreseen.
Façade: A façade is the exterior front side of a commercial building. In the terms of CCAP a façade is the front portion of the structure that faces an avenue, street or road within the CBD. A façade acts as or has the potential to act as the entrance of the commercial portion of the structure.
Non-Compliance: An applicant is non-compliant if the applicant fails, either through action or lack of action, during the application phase or grant contract term if that applicant fails to abide by the policies of this program or terms of the contract. Actions that will make an applicant non-compliant include but are not limited to:
• Failed to turn in a completed application
• An applicant’s background check yields a criminal history making the applicant unfit to meet the agreed upon requirements.
• Fails to complete an “Approved Project” within the agreed upon time frame
• Has completed an “Approved Project” that does not meet the expectations set by the City of Dayton in the award contract.
• Has not obtained the proper authority, permits, licensing to perform an “Approved Project.”
• Is discovered to be in breach of a zone requirement, or other federal, state, county or municipal regulation.
• Where three (3) separate code notices are sent within the last 12 months or such notices lead to a code citation.
• Is discovered to have employed unlicensed and/or unapproved professionals to perform project related task.
• A business awarded funds for an “Approved Project” that closes or relocates before the three year term expires
• An applicant awarded funds for an “Approved Project” under the structural improvement sub program that does not reinvest 15% back into the subject property.
• Completes the approved project within the set parameters, but fails to meet with the Main Street Manager as directed and/or hold a relationship with a SBDC, SCORE, or Rekindle mentor when applicable.
Structural Improvements: A structural improvement is an addition or alteration to real property that fulfills one of the following statements
• Substantially adds to the value of the real property, or appreciably prolongs the useful life of the real property.
• Becomes part of the real property or is permanently affixed to the real property so that removal would cause material damage to the property or article itself.
• Is intended to become a permanent installation.
For the purpose of this program structural improvements eligibility will be limited. The purpose of these programs is to improve the existing status of the CBD. Business specific improvements to properties and property additions will not be eligible for these awards. Although they fit the aforementioned description they do not aim at resolving the identified issues of these districts. Please see the list of approved structural improvements below.
Turnaround-Investment: A program specified as a Turnaround-Investment program will require the recipient of the award to reinvest a percentage of the award back into the subject property or business.
For a complete list of Approved Structural Improvements please contact the City Building at 859-491-1600.
CCAP Program Guidelines
1. Rental Assistance Program
Purpose: The rental assistance program will assist new tenants by providing a matching financial grant for lease costs. The property owner benefits by attracting new business operations to their vacant property and the tenant benefits by receiving reduced leasing costs during business startup or relocation.
Eligibility: The incentive is only available for NEW business leases signed after April 1, 2015 located in a commercial building in the Central Business District (Central Business District). Interested applicants should set up an initial meeting with the Main Street Manager to see if they qualify for the program.
Funding: The City of Dayton will grant up to 50% of the lease payment made every month during the first year for any new business relocating to the CBD (Maximum of $5,000 for twelve months, per building). During the second year of the lease the city will again cover 50% of the lease payment made every month (maximum of $5,000 for twelve months, per building). During the third year of the lease the city will cover 100% of the monthly lease payment made every month (maximum of $10,000). Funding for this program is limited. Applicants will be considered on a first come, first serve basis.
• The city must have a copy of the lease agreement for each request and the rent must be locked in for 36 consecutive months from the effective date of the lease.
• Leases must be an arm’s length contract. It is required both the tenant and property owner listed on the lease agreement sign an affidavit certifying that the proposed lease is such a transaction.
• The tenant must be an approved, operating business working within the quarters of the stipulated property. As part of the application please provide proof of business and a business plan.
• Eligible tenants must relocate from outside the CBD or be a start-up business to be qualified.
• Eligible businesses can only receive benefits under this particular program once. In the event that the business moves to a new location, they will not be eligible to receive this award again.
• If the initially-approved lease terms are modified during the term of the program, the recipient of the award must notify the office of the Main Street Manager in writing before the modification takes place.
• Subleases are not eligible
2. Uniform Signage Program
Purpose: This program is design to enhance the city’s streetscape appeal by providing funding to allow business owners to purchase a unique sign to enhance their business while creating a uniform look to our business district.
Eligibility: The incentive is available to any new or existing businesses located in a commercial building in the Central Business District (CBD). Interested applicants should set up an initial meeting with the Main Street Manager to see if they qualify for the program.
Funding: The city will award funds up to $1,500 per business to be used for the design, purchase, and installation of new decorative signage. Funding for this program is limited. All applications being considered will be submitted to the Board of Architectural Review for historic approval.
• All signs must be of class one, two, four, or six and meet all of their size requirements (See the Dayton Sign Ordinance for an explanation of each).
• In most cases, signs may not be erected any higher than 9’ above the sidewalk and must keep a consistent height with the signs on either side of the proposed property.
• All signs will be required to have external illumination. Such illumination should be proposed in the initial submission of project details.
• Decorative blade signs are preferred, although other forms will be considered upon submission, but may be declined.
• *NOTE* the sign will be property of the City of Dayton, Kentucky during the three year contact. After the contract expires and the business has met all requirements satisfactorily, the City will relinquish its ownership and deed said sign back to the business/business owner.
3. Structural Improvements Program
Purpose: The City of Dayton recognizes there are a number of commercial buildings in the Central Business District (CBD) and that these buildings require significant structural improvements to be deemed sufficient, safe, and functional. This program will encourage current and prospective business and/or building owners to invest in their property and community through structural improvements. Such an investment will assist in improving the value of the subject, lessen the burden of both the owner and occupier(s), and increase both intangible and tangible values of the CBD.
Eligibility: The Structural Improvement Program is available to anyone owning or purchasing a commercial building in the CBD zone after April 1, 2015 that is in need of structural repairs. Eligibility is also dependent on the applicant meeting the requirements listed below. Interested applicants should set up an initial meeting with the Main Street Manager to see if they qualify for the program.
Funding: The City of Dayton will reimburse up to 20% (maximum $20,000) of the accepted bid for structural repairs done to any commercial property within the CBD zone after February 1, 2015. Awarded funds will be given to the property owner once improvements are made and inspected. For this program a Turnaround-Investment is required and should not to be less than 15% of the original award amount. If the Turnaround-Investment goes towards a structural façade improvement; the applicant could be eligible for more funding. The additional funding will be a matching grant not to exceed $7,000.00 and will be awarded to the building owner. This additional award must be approved by the City and will be released as a reimbursement following the submission of invoices.
• Only commercial buildings located in the CBD qualify for this program.
• Applicant must provide the city with a detailed building inspection report completed by a licensed professional along with a detailed project proposal. Only approved projects listed under “Approved Structural Improvements” in the Program Policies will be eligible for this program.
• No more than two approved projects can be completed under one application. Applications can only cover one property. Properties that have been awarded this program are no longer eligible to apply.
• This is a Turnaround-Investment and applicants are required to submit a detailed project plan for these funds.
• Incentive money will be awarded directly to the owner of the property upon the completion and inspection of the structural improvements and following the submission of the detailed project plan for the Turnaround-Investment.
4. Business Occupancy Program
Purpose: The City of Dayton recognizes there are a number of businesses within the City’s Central Business District (CBD) that rent their facilities. The City further recognizes that these rental rates add to the overhead cost of said business and there often exists a divide between the goals and desires of the business and the building owner. This program is to assist businesses in purchasing a facility for the conducting of their business within the CBD.
Eligibility: This program is available to anyone purchasing a commercial building in the CBD zone for the purpose of moving a current business within the facility or starting a new business after April 1, 2015. Interested applicants should set up an initial meeting with the Main Street Manager to see if they qualify for the program. Applicants applying with buildings that have been deemed to be at a larger competitive disadvantage within the commercial building market by the City will receive preferential treatment.
Funding: The City of Dayton will reimburse up to 10% (maximum $10,000) of the sale price of any commercial property purchased in the CBD zone after February 1, 2015. Once an application is approved by the Main Street Manager, funds will be awarded no later than 60 days following the closing of the sale. Funds will be released to the business purchasing the building directly.
• Only commercial buildings located within the Central Business District Zone qualify for this program.
• The property located at 635 Sixth Ave. Dayton, Kentucky is not eligible for this program.
• Applicants should also submit proof of final purchase price, a building inspection completed by a licensed professional and an appraisal completed by a licensed professional.
• Proof of business will also be required.