Courthouse Square Investment Incentives – Greencastle

The City of Greencastle, as part of its focus on the Courthouse Square Business District, has available several incentives to support investment in the area.

Stellar Communities – Façade Renovation Assistance

The City of Greencastle, through its Redevelopment Commission, is offering financial assistance with façade renovations and improvements.  Property owners are expected to provide a 10% cash match and to provide a façade easement in favor of the City.  Phase 1 of this program is already under construction.  Phase 2 began in late 2013.  Funds are limited and may or may not be available beyond Phase 2.

Stellar Communities – Public Improvements

The Indiana Department of Transportation and the Greencastle Redevelopment Commission will be investing in various streetscape projects in 2014 and 2015.  Several of these projects will focus on improving the linkage between the DePauw campus and the Square.  In 2013, streetscape improvements were completed along Washington Street, from Vine Street to Bloomington Street.  Improvements included new sidewalks, storm drainage, street lights, and landscaping.

Stellar Communities – Public Parking

In the spring of 2014, construction will commence on a new parking lot located one block south of the Square.  The facility will be free to the public and is designed to support employee and customer parking as well as downtown housing development.  Construction should be complete by the fourth quarter of 2014.   Plans are underway for the construction of a second parking lot in the downtown.

Federal Historic Rehabilitation Tax Credit

The Courthouse Square and several surrounding blocks are listed on the National Register of Historic Places as a historic district.  Buildings that are considered contributing to the historic character of the district may be eligible for a 20% federal investment tax credit.  The investor must spend a dollar more than the adjusted basis and the renovation work must meet the Secretary of the Interior’s Standards for Rehabilitation.

An application for the credit and approval of the proposed work must be submitted prior to the commencement of the rehabilitation work.  For more information on the federal tax credits see – http://www.nps.gov/tps/tax-incentives.htm

Over the years, a number of structures in the Courthouse Square Business District have used this incentive.

For information on the Secretary of the Interior’s Standards for Rehabilitation see – http://www.nps.gov/tps/standards.htm

The federal government also offers a 10% investment tax credit for non-historic buildings placed in service prior to 1936.  The building must be renovated for commercial use and must meet three criteria:  a) at least 50% of the existing external walls must remain as external walls; b) at least 75% of the existing external walls must remain as external or internal walls; and, c) at least 75% of the internal structural framework must remain in place.  There is no formal review process for this credit.

State of Indiana – Rehabilitation Investment Tax Credit

The State of Indiana also offers a 20% state income tax credit for the renovation of commercial historic structures contributing to a National Register Historic District.  Generally, if a project qualifies for the federal credit, it will also qualify for the state credit.  A minimum of $10,000 must be spent on the rehabilitation work and the work must meet the Secretary of the Interior’s Standards for Rehabilitation.  There is an annual cap on the quantity of credits available so there may be a delay in actual receipt of the credits.  For more information see – http://www.in.gov/dnr/historic/3680.htm

An application for the credit and approval of the proposed work must be submitted prior to the commencement of the rehabilitation work.

Three structures in downtown Greencastle have used this incentive program.

For information on the Secretary of the Interior’s Standards for Rehabilitation see – http://www.nps.gov/tps/standards.htm

Project Financing – USDA Business and Industry Loan Guarantee

As a rural county, Putnam County is an area where businesses can access the USDA’s Business and Industry Loan Guarantee Program.  The program provides a loan guarantee to lenders that provide financing for projects in rural areas.  The guarantee can be provided on loans that finance real estate, equipment, and/or working capital.  The amount of the guarantee depends on the level of borrowing.  Companies must meet a 51% domestic ownership threshold.

Job Training – WorkOne – On-The-Job-Training Reimbursement

WorkOne of Western Indiana can provide reimbursement to a small business of up to 50% of the wage rate of the training participant, during the agreed prescribed training period.  Trainees must be eligible for federal Workforce Investment Act (WIA) services and require training and skill upgrades to meet the needs of the employer.  WIA funding (through the US Department of Labor) is allocated on an annual basis and cannot be encumbered prior to the program year.   Generally these funds cannot be used in support of a business relocation project that results in the loss of jobs in another part of the country.

WorkOne Business Team staff work with companies to insure that if the Department of Labor continues to make funds available in future years, the company will be eligible to pursue reimbursement.  The value of the reimbursement is determined based on the number of employees trained and the length of the training period as allowed under program guidelines.  From time to time, funds may be limited or available on a first come, first served basis.