DGDC eyeing grant funding
By Ethan Smith
Published in News on February 8, 2015 1:50 AM
For now, it is just an idea.
But it is an idea that could transform three buildings downtown that sit in the middle of Goldsboro's ongoing Streetscape project.
Downtown Goldsboro Development Corp. is considering applying for a North Carolina Main Street Solutions grant in the amount of $200,000 for the revitalization of three downtown buildings and the creation of eight full-time jobs.
But just which buildings would become part of the project are not being disclosed, DGDC director Julie Metz said, because the city is still in the process of acquiring one of the three properties.
"There are a lot of moving parts that will require cooperation between all parties involved, and if one party pulls out, the whole project could fold," Ms. Metz said.
The $200,000 grant would be used to fund the revitalization of the three downtown buildings -- the money would be divvied up between two property owners, giving $75,000 to each so that they may have the resources to refurbish their buildings. After giving out the $75,000 to each property owner, the remaining $50,000 would be retained for building rehabilitation.
There is just one catch.
The city, Ms. Metz said, would have to match the grant for the amount of $150,000 -- money that would become part of a revolving loan fund.
"A certain amount of money is given to the loan recipient based on the amount of work they show us they are putting into the property," she said. "They show us receipts for work they are doing on the property after we front them a certain amount of money, and then we give them more money based on the work being done."
The individual loans given to business owners are given at a two percent interest rate for a 15-year period.
Ms. Metz said one of the property owners wants to make the downstairs of his building a hot dog and ice cream shop and transform the upstairs into a residential area.
The other property owner wants to create a tea and coffee shop downstairs and put real estate offices upstairs.
If the third property is acquired by the city, this would allow the creation of four new downtown businesses.
For the 2015-2016 grant cycle, there is no deadline to apply, Ms. Metz said. Instead, money would be disbursed on a first come, first serve basis.
DGDC applied for the Main Street Solutions grant in 2011 and received $200,000 -- money that allowed the Arts Council of Wayne County to move its operations to its current location downtown on John Street.
Of the $200,000 awarded in 2011, $100,000 was used to create a revolving loan fund, which allowed DGDC to dole out extra dollars to the Arts Council on the terms of paying back the loan over 15 years and creating full-time positions. Once a sufficient amount of the loan was paid back, DGDC was able to begin loaning out the money again to other downtown businesses.
"This grant is intended to create and retain jobs and spur investment downtown and support small businesses," Ms. Metz said.