Hanover, MN

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Hanover EDA Matching Grant Program

 
PURPOSE OF THE MATCHING GRANT PROGRAM:
 
The purpose of the fund is to promote and encourage economic development and retention in compliance with the existing Business and River District performance standards and historical guidelines.
 
ELIGIBLE APPLICANTS:
 
Eligible applicants include businesses located in existing structures within the corporate limits of the City of Hanover.  Home based businesses are not eligible.
 
GENERAL GUIDELINES:
  • 50% of project costs privately funded
  • 25% of project costs grant funded through EDA
o   Maximum contribution of $7,500
  • 25% of project costs zero percent interest loan through EDA – max 36 month term
o   Maximum contribution of $7,500
  • Loan balance must be paid in full upon sale of property
  • Applicant may request only grant proceeds portion of EDA contribution of project costs
ELIGIBLE ACTIVITIES/EXPENDITURES:
  • Landscaping
  • Exterior Upgrades
  • Ornamental Lighting
  • Planters
  • Benches
  • Signage
  • To conform to State building codes
  • To conform to City codes and ordinances
  • Parking enhancements
  • Residential Conversions of 50% or more
  • Security Improvements
INELIGIBLE ACTIVITIES:
  • Paint
  • Routine Maintenance & Repairs
  • Interior Renovations
  • In house labor
  • Residential Conversions under 50%

APPROVAL PROCESS:
  • A current financial statement must be submitted with this application.  In the event that this is a new start up and no financial statements exist, then a business plan must be submitted with this application.
  • The City Administrator shall review the application for compliance and will then present it to the EDA Board for recommendation to the Hanover City Council. 
  • The Hanover Economic Development Authority will review each application on its own merit.  The EDA will then make a recommendation on the application and forward it to the Hanover City Council for final action.
  • Upon action by the Hanover City Council, the City Administrator will notify the applicant of the decision. 
  • The loan portion of the contribution shall be issued to the applicant upon final approval.
  • The applicant shall perform the work as described in the application within 180 days. If the 180 day requirement is not met, the applicant will be required to reapply for the funds. Upon completion they shall request a final inspection and provide proof of all expenditures to the City Administrator. Once verified that all work has been done and the expenditures are in compliance with the terms of the Renovation Program, the City Administrator shall release the grant portion of the contribution.
  • This program will not retroactively reimburse costs. Application must be received and approved prior to work commencing.
EXAMPLES:
  •  $20,000 estimated project costs
o   Eligible EDA contribution of $10,000 total
  • $5,000 grant proceeds
  • $5,000 loan proceeds
o   Loan balance provided at beginning of project with grant balance provided following completion of project
o   Loan repaid over max 36 month term
  • $20,000 estimated project costs
o   Eligible EDA contribution of $10,000 total
  • Applicant desires only grant portion of $5,000
o   Grant balance provided following completion of project