Uniontown Redevelopment Authority to decide on participation in loan plan
The Uniontown Redevelopment Authority wants to meet with the Downtown Business District Authority before it considers allowing its executive director and rehabilitation specialist help run a DBDA business loan program. The DBDA wants URA executive director William Long and rehabilitation specialist Mark Yauger to help operate a proposed low-interest loan program that would lend out $100,000 that was left over from an now-expired program.
Long said the URA would receive $800 as compensation for his and Yauger’s work for every DBDA loan.
Their work would include loan document preparation, work inspections, preparing material specifications and historical reviews.
The DBDA would handle all transactions and maintain files on the loans and the work they paid for.
A motion to authorize the URA to operate the program was tabled.
Board member John Ptak asked if the board had enough information to vote on the matter.
Board chairman Alvin Mundel said the URA should get a copy of the loan guidelines from the DBDA before considering the proposal.
Long said business owners would have to borrow from a bank a match equal to the loan amount and have 20 percent cash equity, and participating banks would approve or disapprove the loans.
Brian Ludy, who serves on both authorities, said payments would be split between the DBDA and the bank.
Mundel and Ptak said banks and other government agencies already offer low interest rates on loans.
“We deliver a level of expertise,” Long said, referring to the experience he and Yauger have with the URA’s home rehabilitation program.
In June, the DBDA approved tentative guidelines that allow for loans of up to $10,000 or $15,000 for five years at 2 percent interest.
Business could use the money for fa?ade improvements or upgrades needed to meet the city building code.
There would be a $300 application fee and approved borrowers would have to join the DBDA by paying $125 for annual membership.
Ptak said it is a good program that “fills a void,” but more information is needed.
Long suggested meeting with the DBDA after its next meeting, which is scheduled for July 17.
In other business, the board awarded a contract to demolish condemned homes at 24 Collins Ave. and 205 Evans St. to Franty and Sons of Uniontown for $13,400.
The highest bid was $19,000.