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Eligibility criteria for PEP Program
Eligibility Criteria for PEP Incentive Program
The goal of Hagerstown’s Partnership in Economic Progress Incentive Program (PEP) is to spark private sector investment that contributes towards the revitalization of our downtown. In order to ensure this goal is achieved, all applications will be reviewed and evaluated by a committee of City staff that will include the Finance Director, the Community Development Director, the Planning Director, and the Director of Code Administration. All applications will be evaluated for consistency with the following eligibility criteria:
1. The project is located in the PEP zone. On rare occasions, projects may be approved outside the PEP zone, however such projects must involve quality renovation work and quality tenants which will have the sustained impact on the community that the City is seeking.
2. Minimum investment for upgrade and improvement of the building by the applicant of $250,000 for a commercial project and $100,000 for a residential project. For a mixed-use project, the minimum investment required shall be $200,000. Calculation of the minimum investment requirement shall not include property acquisition costs.
3. The building and all core systems meet or will meet upon project completion all City of
Hagerstown code requirements.
4. For a residential project, the following amenities must be included in each residential unit:
a. Central or split-duct HVAC
b. washer and dryer
c. dishwasher
d. wood veneer or solid wood kitchen and bathroom cabinets
e. approved solid surface counter tops in kitchen and bathrooms
f. refinished or new hardwood floors or wall-to-wall carpeting in areas other than kitchen and bathrooms
5. For a residential project, any new residential units created must meet the following minimum square footages requirements:
i. 500 Sq Ft for an efficiency unit.
ii. 650 Sq Ft for a one-bedroom unit.
iii. 800 Sq Ft for a two-bedroom unit
iv. 1,000 Sq Ft for a three-bedroom unit.
6. In mixed-use and commercial buildings, the ground floor storefront spaces shall be used for retail, restaurants, branch banks, personal service businesses (e.g., hair salons), arts and entertainment enterprises, educational facilities, and other similar high intensity uses that attract pedestrian traffic which will support other downtown businesses and thus contribute to the vitality of the downtown. An office use may be located in a storefront space if the business owner is an owner-occupant of a residential unit on an upper floor of the same building. All other professional and non-profit office tenants shall not be located in storefront spaces.
7. The applicant is not delinquent on any City or County taxes for the property nor shall the applicant be delinquent on any other financial obligations to the City for the property.
8. Projects which have already been renovated are only eligible for the PEP program if the renovations activities were completed since January 1, 2007 and if the tenant spaces for which PEP incentives are sought do not yet have final Use and Occupancy permits.
September 1, 2009
CONTACT
Economic Development Manager
301-739-8577 x 111
