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Rehab funded by downtown loan program

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James Alverson

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Victor Grassman

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Photo by Cat Szalkowski-Patneau

Ron Sutterlin of Sutterlin Restorations paints the rear façade of the old Kealey Pharmacy in downtown Janesville. Sutterlin also plans to work on the rear facades of neighboring buildings owned by Jim Alverson, who tapped a new loan program that’s the result of a public-private partnership to encourage downtown business improvements.

JANESVILLE — Jim Alverson is the first to admit that the backs of his buildings in the 200 block of West Milwaukee Street are looking a little tired.

“Lots of delayed maintenance, both before and after I bought them,” said Alverson, who owns Home Again Consignment Home Services at 215 W. Milwaukee in downtown Janesville.

Vines are growing, mortar is missing and windows need repair.

“And there’s about 32 different colors going on back there,” Alverson quipped.

That soon will change as Alverson takes advantage of the new Downtown Janesville Redevelopment Loan Program to rehab the rear of his buildings at 211, 215 and 217 W. Milwaukee St.

The program is a joint partnership between the city and two downtown banks—M&I and Johnson—to help businesses locate, expand or improve in the downtown area.

The city is awarding loans for less than $10,000, while the banks are making loans above that threshold, said Vic Grassman, the city’s economic development director.

“It’s a neat project between the public and private sectors to encourage people who are considering a business expansion downtown or other improvements to come to us,” Grassman said. “It’s basically money without a lot of the traditional hassles.”

Grassman said terms are flexible and carry favorable, below-market interest rates for tenant and façade improvements, code upgrades and equipment purchases and installation. The loans are collateralized and underwritten by the private sector, he said.

Alverson, for example, is receiving a loan from a city TIF for $9,700 at 7 percent interest that will be paid back over seven years.

“This was about the only way we could afford to do these repairs,” he said.

Ron Sutterlin of Sutterlin Restorations will do the work on Alverson’s buildings. First, however, he’s painting the back façade of the neighboring Lana Van Galder Interiors, the former Kealey Pharmacy.

While that project is not part of the loan program, Alverson said Sutterlin’s work on it and his buildings will create an interesting, cohesive look to the backs of buildings on the block.

Grassman said Alverson’s project is the second to take advantage of the loan program.

The first, he said, was O’Riley & Conway’s Irish Pub, which opened across Milwaukee Street earlier this year.

“O’Riley’s is the perfect model for how we’d like to see it work,” Grassman said. “They went to M&I for a loan, put in their own equity and then came to the city for help with the façade.”

The loan program, he said, awards credit when credit is tough to get.

“There really are two issues: access and access at a low rate,” Grassman said. “This program offers both, and we encourage people to take advantage of it.”

In addition, Grassman and the city are developing a gap-funding program to help companies expand in the city’s industrial parks. It, too, will be a public-private program that offers loans of $50,000 or more at favorable rates.