Economic Predevelopment Funding Available
Hey Downtowners! We have some exciting news and two great opportunities coming up next week. Our friends at the Kansas City chapter of the Local Initiatives Support Corporation (LISC) just announced a new $4 Million program geared toward predevelopment in Downtown KCK: the Catalytic Urban Predevelopment Fund. The Catalytic Predevelopment Fund provides low-interest, flexible predevelopment loans for projects in the urban core of Kansas City, Kansas. The fund acts as a catalyst to spur development in low to moderate income neighborhoods by providing the critical capital necessary in the early phases of real estate development projects.
Eligible borrowers will include both non-profit and for-profit developers planning a variety of projects including affordable and mixed-income housing, commercial development, community facilities, and mixed-use projects. Special project investments at 0% interest may be available for technical assistance and early-stage activities for eligible applicants.
- Annual interest rate: 4% (Special project investments at 0% may also be available)
- Average loan size: $250,000
- Loan term: Up to 3 years, interest monthly, principal due at maturity
- Loan to value & Security: Variable
Predevelopment loans are for project planning, design, acquisition, and environmental assessments that normally precede construction. Predevelopment activities include but are not limited to:
- Project conception, Environmental consultants, Site selection
- Finance consultants & fees, Market research, Development consultants
- Pro forma development, Market studies, Legal services
- Community engagement, Appraisals, Architect/Engineer services
Preference is given to projects within one mile of a school and in LISC’s three focus areas of the Historic Northeast and Troost/Prospect Corridors of KCMO; and Downtown KCK. We encourage all Downtowners with an interest in this new program to join LISC at the official Catalytic Urban Predevelopment Fund Launch on Monday, April 11 from 10:00 to 11:00 AM. Follow the link for registration and location information.
If you're not able to join LISC for the fund's official launch, you're in luck! DTSKCK's next Economic Development Committee Meeting is Tuesday, April 12 from 3:30 to 4:30 PM, and we're excited to announce our guest speaker is Steve Weatherford, Senior Program Officer for Community Development and Lending at LISC:
In his role, Steve oversees LISC’s capital investments, including loans and lines of credit, grants, recoverable grants and equity, which support projects in low to moderate income areas throughout the region. Prior to his work at LISC, Steve’s work experience includes serving as Senior Advisor to the Office of the CFO at the U.S. Department of Labor, Coordinating Officer for FEMA for Hurricane Irene and Storm Lee; serving with Governor Sebelius during both her terms; President of the Kansas Development Finance Authority and Kansas Housing Resources Corporation, Sr. Vice President of George K Baum National Housing Finance Group and Regional Administrator of HUD in Ft. Worth Texas.
Mr. Weatherford will be joining us to discuss LISC's Catalytic Urban Predevelopment Fund. We welcome and encourage Downtowners to join us for this exciting meeting by registering with DTSKCK Director Charles Schlittler at (913) 620-7480 before Monday, April 8 at 5:00PM. Seating is limited, so please act quickly!
To download a PDF copy of the Catalytic Urban Predevelopment Fund Brochure, click here.