OCR Text |
Show t t I Enterprise Review , June 9, 1976 Redevelopment Will Test Legality of Business Pays Bigger Loan Fund This Week Share of Tax Pie Can the Salt Lake City Redevelopment Agency legally establish a revolving loan fund for owners and investors to improve properties in blighted areas? That is the question Agency attorney will at- vVilliam D. Oswald tempt to answer this week. The Agency recently discovered California is the only state which has authorized its redevelopment agencies to establish such a fund. Agency director Mike Chitwood has asked Oswald to determine if Utahs Neighborhood Devel- opment Act would authorize Salt Lake's agency to proceed with a program similar to California's. Oswald expects to form an opinion on the subject this week. We are hoping our laws would authorize such a program so wc can immediately proceed with our plans," Chitwood said. Otherwise, we would have to propose an amendment to the Utah law, and it would be years before we could put the program into effect. We need the program today, not three years from now," he added. The revofving loan fund would be established with a $1.5 million Agency bond. It would provide ten-yeloans to all owners of rental property as well as homeowners in a blighted ar low-inte- rest area. If Oswald's opinion is positive, the next step for the Agency would be to approach a bonding attorney, who would also probably want to look at the legality of the program, Oswald said. Chitwood has estimated the program could be in effect within 90 days after the Agency receives positive word from attorneys it is legal. Security Bank ably sure ments imposed $41.9 million in property taxes. This was equal to about 20. 1 percent of all property taxes levied. Other recipients of property tax revenue include munici$26.4 million (12.7 percent of the total), special improvement districts - $13.2 million (6.4 percent), and bounty and animal disease control levies - $152,505 (O.l - percent). Ill have a public Although the schools conhas protested the application hearing" regarding The Bank tinue to receive the bulk of all by Envirowest to establish a (the name Envirowest has property tax receipts, the bank in Sandy. chosen), however the hearing largest percentage increases According to the letter of would not be scheduled for protest. Commercial Security another month. Bank has an application pendIf Commercial Security for a branch bank wants to a have to ing hearing, we serve the same geographical would probably have one." he area" as the proposed bank. said. Envirowest applied for perAccording to Commissioner of Financial Institutions, W. S. mission to establish The Bank Brimhall, Commercial Secur- at the end of April. Propoitys proposed location is in nents said they own the only the vicinity of 870 East 9400 commercially zoned property South. Its on the same within two miles in their street, about 1 1 blocks west of Sandy location (2000 East 9400 Envirowcsts proposed bank," South). Brimhall explained. Blaine Harris, president of He added he has had ComEnvirowest, said in an earlier mercials application for some interview, Six or seven major time and has indicated his banks have indicated an interintention to approve it. est in buying the site from us. Brimhall said lam reason But its not for sale." in recent years have been by special improvement districts. The Foundation study ob- serves that property taxes levied by special improvement districts have risen by 195 percent over the past five years. This compares with property tax increases of 92 percent for counties, 61 percent for cities and towns, and 59 percent for public schools during this same five-yeperiod. The rapid growth in special district taxes is a reflection of the population expansion in unincorporated urban areas, especially along the Wasatch Front. ar (fillt at Quail J titl THURSDAYS Banks Seek to Expand Portfolios with Quality Loans Continued from lb the long term or usually four to six years, or longer in some instances. He said another reason may be that banks are demanding more collateral from smaller businesses for their In 1975, County govern- palities Commercial Security Protests The Bank Commercial Continued from lb LA CAILLE NOW OFFERS FINE COUNTRY DINING THURSDAY, FRIDAY, SATURDAY EVENINGS AND SUNDA Y FOR BRUNCH Duaine Brown deals with go to another bank to get better rates, he said, be- a number of banks depending cause the bank were with on the companies needs. As a matter of cost, he gives us the lowest rates." The firm also uses an said, there is no difference in insurance company and credit banks, service is expressed Zleso'Vnhtnu' acceptance corporations for in terms of interest. credit, but their major bank lender has the bulk of their loans. He estimated 95 to 98 borrowing. . Bennett said it is critical percent of the SBAs loans would be with banks this year. to our success to stick with one The banks use the gov- bank." Allan Murdock, the conernment to guarantee up to 90 extroller for Clark Tank Lines, percent of the loan, he Creative Layout Design Lithography Letterpress plained, which means they are said his firm had a line of Phototypesetting Intertypesetting only committed to $10,000 on credit with one bank, but banks when a $100,000 loan. changed they loan their requirechanged Business Industry Commercial ments. What the Borrowers Say Leon Lister, chairman of subBorrowers tend to FULL COLOR PRINTING Miller & Viele Mortgages, much of the what too stantiate said his firm has little trouble Brochures Stationery lenders say, buttheir situa- obtaining credit with the Forms tions are much more indivibanks because it has been in Pamphlets dualized. business for quite a while John Bennett, vice presi- (since 1897) and is very stable. dent and general manager of WE HAVE THE KNOW-HOLister said this is not true AND EOUIPMENT Bennett Leasing, said his firm with many of the newer mortFOR YOUR PRINTING REQUIREMENTS hasnt been actively solicited gage companies. Many by a bank for about two years. banks will not lend commer487-065He said his firm elected not to cial money to new, unproven give their business to the bank mortgage companies, just a that time, because their FHA or VA money." rates were too high. And Mark Ames, finance Bennett said, Its not a for Duaine Brown banks style to pound the manager Chevrolet, said banks are very pavement." but we get letters to lend and their restricfrom banks all over the coun- eager tions are not getting tighter. try asking for our business." However, Ames said, Bennett Leasing has been 841 with one bank since its incep- banks are more careful in their tion a quarter century ago. lending practices in the areas It is not realistic to of stability, credit and suppose that this firm would COMPLETE PRINTING SERVICE W Phone (801 ) 1 LORRAINE PR 1952 West 1500 South Salt Lake City, Utah 04 |