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The objective of this program is to assist property owners in securing lower interest loans for rehabilitation of their downtown properties. After a redevelopment project has gained approval by the Jefferson Development Commission, Plan Commission and Common Council the redevelopment funds will be moved to non-interest bearing account in a local financial institution. The redevelopment funds will remain in the non-interest bearing account throughout the life of the loan with the balance declining as payment is made on the loan. As the loan is paid, monies will be returned to the Redevelopment Fund for use by others. The amount of money placed in the account by the City will be equal to one-half the amount of the total loan. Under this financial arrangement the loans themselves will be issued by the financial institutions with the City’s money being used only to reduce the interest cost of the loans. The City will not become involved in credit decisions and the lending institutions will assume the total risk on any loan. In the event of a default the City’s money will be withdrawn after an agreed amount of time. Please contact City
Administrator Tim Freitag at 920-674-7700 or
tfreitag@jeffersonwis.com
for more information. |