Commercial/ Industrial Assistance

1. Commercial Rehabilitation Loan Program - Up to $1.2 Million

The Commercial Rehabilitation Loan Program provides financial incentives in the form of forgivable loans to existing companies that contribute substantial sales tax revenue and employment opportunities in the City of Orange. Eligible participants include: companies located on property zoned for commercial or industrial use within the Project Area with an operating history of five years or more in the City of Orange; occupying a minimum 100,000 square foot building; employing a minimum of 200 full-time employees; and, generating a minimum of $100,000 in annual local sales tax revenue ($10 milion in annual taxable sales). Qualified rehabilitation work under the Program includes upgrading and expanding permanent improvements including building, parking, landscaping, tenant improvements, signs and equipment that is permanently attached to the building.

2. Auto Dealership Rehabilitation Loan Program - Up to $1 Million

The Auto Dealership Rehabilitation Loan Program provides assistance to auto dealerships located within the City of Orange. Eligible participants include car and truck franchises predominantly selling new and used automobiles and light trucks. The emphasis of the business must predominantly be new vehicle retail sales. Rehabilitation work qualified in the Program includes upgrading and expanding permanent improvements to the site to bring the vehicle dealership, wholly or partially, to the current standards of the vehicle manufacturer. Assistance shall not exceed more than 20 percent of the cost of the project and it shall be paid over a period not longer than ten years. Additionally, the maximum assistance may not exceed the lesser of the economic gap financing required to complete the project as determined by the Agency in its sole and exclusive judgment, or $1.0 million. If the dealership remains in business for the period of Agency assistance, the Rehabilitation Loan shall be forgiven in its entirety.

3. Industrial Development Bonds - Up to $10 Million

The Orange City Council established the Industrial Development Authority of the City of Orange (IDA) in February 1997. The IDA works to facilitate acquisition, construction or rehabilitation of property through the issuance of tax-exempt industrial development revenue bonds (IDB's) for manufacturers and/or industrial enterprises. The City has no financial exposure or liability. The IDA acts as a "conduit" for the issuance of the bonds. Bondholders are repaid by the applicant.

The entire process, including the required IDA and City Council meetings and approvals of two State agencies, takes three to six months. All financial and legal consulting costs incurred by the City are reimbursed by the business pursuing the IDB. The City requires any entity submitting an application to also submit a $10,000 deposit to ensure that all City costs are covered, particularly if an applicant should later decide not to pursue the IDB.