The program will be offered to real estate brokers and building owners.  The grant amount will be based on the length of occupancy.  The following rates will apply:

• $.55 per square foot per year of useable space occupied will be offered to new downtown businesses.
• $.60 per square foot per year of useable space occupied will be offered to new businesses locating in buildings who have received funding from the Building Revitalization Program (BRP).  The BRP provides funds to property owners for design façade improvements and interior building renovation.
• Each application will be evaluated based on its ratio of private dollars invested to the eligible grant amount.  DKI is seeking a target ratio of at least 20 to 1.  Applicants that exceed this ratio will receive a more favorable chance of grant award.

1. The business prospect must be totally new to the Downtown Development Area.
2. Priority will be given to businesses that located in BRP project buildings.
3. Maximum grant award per business deal is $10,000.  All grants are subject to the availability of funds.
4. Useable square foot measurement is based on BOMA standards.
5. The real estate broker or building owner must be a party to the deal.
6. An occupant may not be used as qualification of BRIP funds more than one time.
7. An “earn out” process may be applied to all occupants that are new business start-ups.  A start-up is defined as any business that has been in operation less than one year.  The following staged payout of grant funds to the broker or building owner will apply:
   • Payout 50% of grant provided when business opens and occupies space.
   • Payout 25% when business has operated and occupies space for 6 months.
   • Payout 25% when business has operated and occupies space for 12 months.

• Real estate brokers for additional commission fees.   This includes brokers that represent potential occupants (lease or purchase) and building owners.
• Building owners for improvements to the building or enhancements to secure the identified occupants.

• Maximize the use of grant dollars to secure viable retail and office businesses downtown.
• Maximize the use of grant dollars to generate the greatest number of jobs and tax base downtown.
• Maximize the use of grant dollars to generate the largest private investment.
• A minimum ratio of 2 to 1 (private investment to grant dollars) is required.
• Target grant funds to those retail and office categories recommended in the 2002 Comprehensive Commercial Master Plan.

1. Applicant completes form and register the deal.
2. Applicant submits disclosure or agent agreement.
3. Applicant submits letter of intent and floor plan.
4. Application reviewed by Business Recruitment Committee
5. Applicant submits signed lease or purchase agreement.
6. DDA Board reviews the application, lease or purchase agreement, and committee recommendation and takes action. Funds are obligated at this time if grant is approved and funds are available.

1. The applicant (broker or owner) will register the potential deal with DKI’s staff by completing the BRIP application form and mailing or faxing the form to Downtown Kalamazoo Inc., 157 S. Kalamazoo Mall, Kalamazoo, MI 49007.  Phone # (269) 344-0795, Fax # (269) 344-0898.
   
   The application must be submitted and dated before a lease is signed between the owner/broker and tenant.
   
   An application form is available through DKI's office or through its Web site at www.central-city.net. The applicant must complete all required fields. Registration will secure the deal for 90 days. The applicant can extend the deal again after 90 days, (for an additional 90-day period) by calling DKI at 344-0795.
   
2. The broker must submit, within five days of deal registration to DKI, an executed letter of “agency disclosure” or some other documentation that confirms the real estate broker is a party to the deal.
3. The applicant must submit, within 90 days of a deal registration to DKI, a letter of intent to lease or buy signed by all parties to the deal.  The letter shall outline the project details.   Simultaneously, project drawings, with dimensions verifying the useable square footage calculation, must also be submitted.
4. DKI staff will review the application, letter of intent, drawings and project details. Staff will determine the grant amount and the time frame for processing the application.
5. DKI staff will schedule a meeting with the Business Recruitment and Retention Committee (BRRC) and the applicant for preliminary project review.  The BRRC will evaluate the project and prepare a recommendation to the DDA board of directors.

   BRRC meetings occur the first Tuesday of each month.

6. The applicant has 120 days from the date of the BRRC meeting to close the deal.
7. The applicant then submits a copy of the signed lease or purchase agreement to DKI staff that places it on the next available DDA board meeting agenda.  The DDA will review the BRRC’s recommendation and will take final action on the application.  The application remains confidential until the point it is sent to the DDA Board for final review and action.

   The DDA board meets the third Monday of each month. The signed lease or purchase agreement must be submitted to the DKI staff one week prior to the DDA board meeting.

8. Once the grant is awarded, the applicant must enter into a grant contract with DDA that states the terms and amount of the grant and commitment to carry out the project.
9. Grant payout occurs upon occupancy of the occupant identified in the application and verification that the business is open and operational.  Occupant must be open and operational within 5 months of DDA approval in g) above.