Commercial Community Advantage Program
I. PURPOSE AND POLICY.
The City of Dayton is committed to the promotion of high quality development in the City’s downtown Central Business District and to an ongoing improvement in the quality of life for its citizens by enacting the Commercial Community Advantage Program (“CCAP”). The CCAP is split into three different types of grant awards which include: (1) rental abatement; (2) uniform signage; and (3) Façade and Structural Improvement.
The City desires to encourage superior businesses to locate, remain, and expand in the City. Furthermore, the City seeks to enhance its economic development efforts to attract and retain high quality development and jobs by establishing these CCAP Policies and Procedures.
These Policies and Procedures are established in an effort to develop and expand the local economy by:
(a) Promoting and encouraging economic and small business development and redevelopment projects that enhance the City’s economic base;
(b) Diversifying and expanding job opportunities;
(c) Promoting and encouraging projects that create additional revenue for the city without substantially increasing the demand on City services or infrastructure;
(d) Reducing the number of blighted and/or vacant commercial properties; and
(e) Promoting tourism and interstate commerce.
The ultimate goal and public purpose of programs established hereunder is to protect and enhance the City’s fiscal ability to provide municipal services for the safety, comfort, health, welfare, and enjoyment of Dayton residents.
In furtherance of these objectives, the City will, on a case-by-case basis, give consideration to providing economic incentives to applicants in accordance with these Policies and Procedures as amended from time to time pursuant to the City’s authority under KRS 82.082.
All applicants shall be considered on a case-by-case basis. The city has the right to reject any and all applications for any reason.
The following is a list of policies for the City of Dayton, Kentucky and are applicable to Dayton’s Commercial Community Advantage Program (“CCAP”). 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 section of the program has an individual purpose with corresponding requirements that are unique to said section. Funding for this program runs on a fiscal year, and funding is limited for each program. CCAP is an evolving program and all policies and guidelines 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. No incentive monies will be released until all requirements of these Policies and Procedures are met, the application is approved, and all requirements outlined in the specific sections are satisfied.
Applicant: The “Applicant” is defined as a person and/or business applying with the City of Dayton for grant funds under CCAP.
Award Term: The “Award Term” is defined as a three (3) year term starting from the date of the application approval by the City.
Arms Length Transaction: No party to the Lease Agreement, including Tenant or the business (includes owners, agents, servants, employees or assigns) is a relative of, business associate of, or shares any business interest with Landlord or Landlord’s Agent(s) (if applicable). Further, there shall be no hidden or implied terms or special understandings between the Tenant or the business and the Landlord which have not been made part of the written Lease Agreement.
Central Business District: The “Central Business District” is defined pursuant to City of Dayton Code of Ordinances 154.090 and as portrayed on the City of Dayton Zoning Map.
City: The “City” is defined as the City of Dayton, Kentucky.
Main Street Manager: The “Main Street Manager” is defined as the Main Street Manager in City of Dayton Code of Ordinances 31.65 and he or she shall be responsible for the administration of CCAP.
City Administrator: The City Administrator shall be responsible for the administration of CCAP in the absence of the Main Street Manager.
Façade and Structural Improvement: A “Façade and Structural Improvement” is defined as an addition or alteration to real property that either:
- 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.
III. GRANT AWARDS.
Grant Funds under CCAP are split into three different types which include: (1) rental abatement; (2) uniform signage; and (3) Façade and Structural Improvement. Each type is explained in detail in the following sections:
A. RENTAL ABATEMENT.
The rental abatement grant is available to new business tenants to alleviate some of the leasing costs incurred by these new small businesses that are starting up or relocating to the City. The rental abatement grant has a secondary benefit to property owners by reducing vacancies.
This grant is only available to NEW commercial leases signed after March 7, 2017 for businesses opening or relocating in a commercial building in the Central Business District. Eligible businesses can only receive benefits under this particular program section once. Businesses already located in the Central Business District are not eligible. Subleases are not eligible. No Applicant shall be eligible for a grant more than once.
The award grant may be up to 50% of the lease payment made by the business owner for 24 consecutive months and 25% for the remaining 12 months of the contract for a total incentive period of 36 months for any NEW business opening or relocating to a commercial building in Dayton’s CBD after March 7, 2107. There is a maximum award of $5,000/year for the first twenty-four (24) months, and maximum award of $2,500 for the last twelve (12) months per business. Funding for this grant is limited. Applicants will be considered on a first come, first serve basis. All grant funds are released on a reimbursement basis. The rental abatement program awards Funds under this type will be reimbursed to the tenant on a monthly basis based on the terms and conditions of the signed contract.
iv. Additional Requirements.
In addition to the General Requirements applicable to all Applicants for CCAP grant funds, Applicants of the Rental Abatement Grant must also adhere to the following:
a. Provide City with copy of Applicant’s lease which must include a locked in rental rate for thirty-six (36) consecutive months.
b. Complete Affidavit certifying that the proposed or agreed upon lease between the business and landlord is an Arm’s Length Transaction.
c. Business must be initial start-up or relocate into the Commercial Business District. Any business already located in the Commercial Business District is not eligible for this Grant.
d. Notify the City of Dayton, Attn: Main Street Manager, if any lease terms are modified during the term of the award grant.
B. UNIFORM SIGNAGE.
The Uniform Signage Grant is available to new businesses for the purpose of promoting these new and existing businesses while creating a uniform look to the City’s Central Business District.
The Uniform Signage Grant incentive is available to any new or existing business located in a commercial building in the Central Business District. No Applicant shall be eligible for a grant more than once. Where feasible, blade signage is highly encourage.
The City may award funds up to $1,500 per business to be used for the design, purchase, and installation of new decorative sign or awning. Funding for this grant is limited. Applicants will be considered on a first come, first serve basis. All grant funds are released on a reimbursement basis.
iv. Additional Requirements.
In addition to the General Requirements applicable to all Applicants for CCAP grant funds, Applicants of the Uniform Signage Grant must also adhere to the following:
a. Complete a Certificate of Appropriateness and submit their design to the Board of Architectural Review for approval.
b. Ensure the completed sign complies with Dayton Zoning Ordinances that address sign regulations.
c. Obtain sign permit for City through Campbell County Planning and Zoning Office (located at 1098 Monmouth Street Newport, Kentucky 41071).
d. Decorative blade signs are preferred, although other forms will be considered upon submission.
e. Signs are required to have external illumination and plans for such should be proposed in the initial submission of project details.
f. Ensure signs are kept at a consistent height with the signs on either side of the proposed property.
C. Facade and Structural Improvement Grant.
The Facade and Structural Improvement Grant is available to assist new businesses and investors relocating into the Central Business District who have purchased to improve their facilities to ensure compliance with City Ordinances.
This grant is available to anyone purchasing a commercial building in the City’s Central Business District who is considering: (1) starting a new business; (2) relocating an existing business not currently located in the Central Business District, (3) rehabbing or constructing a building with a first floor commercial space with the intended purpose of renting the space to a commercial business;
The City may reimburse up to thirty thousand dollars ($30,000) in matching funds for Approved Facade and Structural Improvement building costs for any commercial property purchased for the moving/opening of a new business in the Central Business District for expedited rehabilitation. Once an application and work to be performed is approved and a full report is submitted by the Applicant for work completed with supporting documentation, grant funds will be released to the Applicant within 60 days of the construction projected being closed out. If the business leaves within the terms outlined in the grant contract the owner will owe to the city a percentage of the grant funds allocated for improvements as stated in said contract. Applicants will be considered on a first come, first serve basis. All grant funds are released on a reimbursement basis.
For building owners that will be locating their commercial business in the building the City will reimburse the building owner for 75% of the approved project costs up to a $30,000 maximum.
For building owners that are rehabbing the commercial building to rent or sell the City will reimburse the building owner 50% of the approved project costs up to a $30,000 maximum. Approved Costs may include but are not limited to:
a. Façade restoration and/or improvement*
b. Major structural/electrical/plumbing improvements in need of repair and identified on a certified building inspection report. Includes repair or total replacement of the roof.*
c. Additions/Expansion for commercial business use only*
d. Added handicap accessibility features
e. Mold Removal
*Requires a Certificate of Appropriateness permit and possibly other permits per the Dayton City Ordinance.
Priority in determining approved costs for reimbursement shall be based on: (1) added value to property; (2) correcting/mitigating violations of City Ordinances; and (3) aesthetics in conformance with the Commercial Business District and Historic District. Other factors may be considered as deemed necessary on a cases-by-case basis by the City Administration and City Council.
iv. Additional Requirements.
In addition to the General Requirements applicable to all Applicants for CCAP grant funds, Applicants of the Business Occupancy Grant must also adhere to the following:
a. Submit a copy of all property purchase documents including but not limited to: (1) contract for sale; (2) deed; (3) Mortgage and Promissory Note; and (4) Closing Settlement Statement.
b. Appraisal completed by a licensed professional
c. Building Inspection completed by a licensed professional.
d. Obtain a Certificate of Appropriateness where necessary.
e. Obtain County building permits where necessary.
V. PROGRAM REQUIREMENTS.
All Applicants that are granted funds must comply with all program requirements during the entire Award Term. Applicants are also encouraged to schedule quarterly meetings with the Main Street Manager to discuss expectations, progress, and program concerns. The requirements of CCAP include:
A. A Completed Application, which shall include the following information:
- Applicant and Co-Applicant Name, Address, Phone Number, and Email Address.
- Employer Identification Number.
- Proposed Property Location of Business (address, and PIDN).
- Business Name, Address, Phone Number, and Email Address.
- Business’s Registered Agent or Contact Person Name, Address, Phone Number and Email Address.
- Business Plan with the following sections: Executive summary, company description, market analysis, organization and management, service or product line, marketing and sales backup, and financial history and projections.
- Past Three Years Business Tax Filings.
- Business Owner and Applicant’s work and management history.
- Supporting information to demonstrate financial stability. Statement regarding prior business incentives received. It is a general policy to give a higher priority to applicants that have received no incentive previously.
B. A City of Dayton Occupational License.
C. No outstanding or unpaid fines, orders, taxes (including income and payroll taxes), or bills, for the Applicant either at this proposed business location or at other locations.
D. A Signed Grant Contract between the Applicant and the City.
E. Completed Initial and Final Building Inspections through the City, Bellevue Dayton Fire Department and County Planning and Zoning Office or any combination thereof as deemed necessary. Inspections will also be scheduled before and after an approved construction project has taken place. Inspections can also occur at any time while under Award Term.
F. Compliance with all City of Dayton Ordinances. This shall include compliance with all zoning/building/health/fire codes, air quality codes, plus any other applicable statues and regulations. Generally, there should NOT exist any code citations against any subject property under current ownership within the past 12 months from the application date
G. Status Reports. Applicants shall report information about the business to the Main Street Manager on a yearly basis following the approval of grant funds through the duration of the Award Term.
H. Provide detailed invoices AND receipts for work completed and/or documents submitted for proof of purchase and rental agreements.
I. Agree, in writing, that any grant of funds is conditioned upon the new business remaining in the operation in the City of Dayton for a term outlined in the specific contracts related to the awarded grant. The term begins on the date outlined in grant contract.
VI. APPLICATION AND APPROVAL PROCESS.
A. APPLICATION SUBMISSION.
Every Applicant must complete a program application specifying which type(s) of the grant funds under CCAP the Applicant desires to pursue. The applicant must attach all required documentation outlined within the application and as required in these Policies and Procedures for the different types of grants requested. Each section of the CCAP will require specific supplemental documentation for the desired grant section. Both the application and supporting material should be submitted to the City of Dayton, Attn: Dayton Main Street Manager/City Administrator. It is highly encouraged for all interested parties to meet with the Main Street Manager or City Administrator before filling out and submitting an application.
Applicant(s) should also be aware that upon submission of an application the parties involved become subject to a criminal and financial background checks. Any work started before the approval of an application and a signed contract will not be reimbursed through the grant.
B. REVIEW OF APPLICATION.
Each application will be reviewed in the order in which they are received. All applications will be reviewed for compliance and accuracy by the Main Street Manager/City Administrator and approved, with or without conditions, or rejected. During this process the applicant may be required to submit additional information for clarity. The City Administration may deny a request for any reason.
C. POST-APPROVAL REQUIREMENTS.
If the grant of funds are approved, the Applicant(s) will be required to sign a grant contract with the City specific to their approved type of grant funds awarded.
Any work started before the approval of an application with a signed contract will not be eligible for the CCAP program. If approved, funding will be released according to the contract for the designated program section.
After a grant has been approved and contract signed, Applicants are encouraged to submit proof of purchases and receipts as they are received. However, an Applicant may not submit for reimbursement any costs not outlined in the program application and agreed contract between the applicant and the City.
VII. PROGRAM COMPLIANCE.
Applicants shall comply with all Program Requirements as administered by the Main Street Manager/City Administrator. An Applicant is Non-Compliant if the Applicant fails, either through action or lack of action, during the application phase or Award Term, to abide by the CCAP Policies and Procedures or the terms of the signed contract. The Main Street Manager/City Administrator shall make the determination of whether an Applicant is non-compliant.
If at any time, an Applicant is deemed Non-Compliant, the Applicant may have the grant award suspended and be liable to repay all funds under the 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. The Applicant shall also pay all costs and expenses incidental to any action taken by the City, including attorney’s fees, as a result of the Applicant’s Non-Compliance.
An Applicant will 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.
An Applicant may challenge the determination of non-compliance by the Main Street Manager by appeal to the City Council in writing within thirty (30) days of the initial determination by the Main Street Manager.
VIII. CCAP ADMINISTRATION.
The Main Street Manager/City Administrator will on a quarterly basis review all CCAP grants and report to the City Council for the purpose of review and departmental oversight.
B. DISTRUBTION OF GRANT FUNDS.
Grant funds shall be distributed at different intervals depending on the type of the grant that has been approved for funding. At a minimum these requirements must be met before any work or actions may begin and monies will be released, the Applicant shall provide detailed invoices AND receipts for work completed and/or legal documents submitted for proof of purchase and rental agreements.