DBDA agrees to loan program
The Uniontown Downtown Business District Authority (DBDA) approved a low-interest commercial building rehabilitation loan program and an agreement to share administration of the program with the Uniontown Redevelopment Authority. DBDA board members voted unanimously in favor of the program guidelines and the cooperation agreement Thursday.
The redevelopment authority scheduled a special meeting for 10 a.m. today to consider the cooperation agreement.
If approved, businesses in the downtown business district could apply to the DBDA for five-year loans from $5,000 to $15,000 at 2 percent interest.
Applicants would have to match the DBDA loan with a bank loan in an amount at least equal to the sum borrowed from the DBDA, secure a mortgage and provide 20 percent of the total project cost as a cash equity contribution.
DBDA members would have to pay a $300 application fee and non-members would pay a $450 fee.
Qualifying rehabilitation work includes fixing building code, life safety code, handicap access and Department of Labor and Industry code violations.
Redevelopment authority rehabilitation director Mark Yauger would list the code violations that need fixed.
Remodeling, fa?ade improvements, sidewalk repair and signage are also permitted.
The program may not be used to fund new construction, property acquisition, equipment and furniture purchases, renovating living spaces, working capital and business expenses or obligations.
Myron Nypaver, Uniontown’s code enforcement officer and fire chief, said city building and electrical permits are required and the permit fees cover the cost of inspections. He said he also conducts life safety inspections for emergency entry and exits.
Yauger said it would be the contractor’s responsibility to obtain all necessary permits.
Nypaver suggested the DBDA require contractors to provide proof of insurance.
Board members Greg Parsons said insurance would be required as part of the bidding process.
Yauger said the redevelopment authority would pay the contractors and he would inspect all work before authorizing payment.
“If you have control of payment, you have control of quality,” Yauger said.
Uniontown requires all plumbers that work in the city to obtain a license through testing, but a license from Allegheny County is acceptable because its test is similar to the city’s test.
“It’s for the protection of the consumer,” Nypaver said.
He said he is working with one homeowner whose recently installed windows fell off the house due to poor workmanship.
Nypaver also advised the DBDA to get permission from the police department before any large garbage containers are placed on streets because they can create traffic problems.
There are two inspections required at different stages of the renovation work. Additional inspections may be required. Each inspection costs $100.
Clerical work performed by the redevelopment authority costs $15.50 per hour, but DBDA Chairman Mark Rafail said the DBDA could do that work for a lower cost.
One loan could be used for work only at one building, and the building must be occupied within 90 days after the work is done.
Loan application packages would be picked up at and submitted to the DBDA office in room 210 in City Hall.
The cooperation agreement requires the DBDA to handle applications, determine the tax status of the property involved, conduct a title search, select contractors, certify final inspections, issue final payment requests and file maintenance.
The redevelopment authority would be required to ensure lead paint safety work practices are followed, prepare work specifications and cost estimates, conduct historical structure reviews, solicit work bids, approve change orders, issue final inspection certificates and hold pre-construction meetings.
The DBDA would pay the authority up to $8,000 in fees for meeting its requirements.
In unrelated business, the DBDA:
– Unanimously passed a motion supporting enforcement of a city ordinance governing vending machines on sidewalks.
– Appointed Kristy Litavec to an unexpired term on the board that ends Jan. 1, 2006.
– Approved a recommendation to city council to reappoint board member Tim Grindle to a five-year term. Council approval is required because his term already expired.