News regarding the Hammonton Wells Fargo Bank building acquisition and the Local Property Acquisition Grant Program.
The proposed scenario would allow the Town to retain 15% of the grant amount following a sale of the property. Estimated figures listed below.
Sale price: $675,000
Minus closing cost to purchase: $25,000
Minus cost to close: $10,000
Minus bond amount repayment: $150,000
Minus repayment of grant: $463,000
Profit to the Town of Hammonton: $27,000
*Anticipated sale price would be approximately $800,000 which would make the total profit higher.*
Local Property Acquisition Grant Program information:
The Grant Agreement will have a deed restriction to ensure that both the Project Property Acquisition and the planned Supplemental Use for either the proposed and approved Strategic Public Use or Future Development Projects do occur within the project development timelines based on the application submission and the Authority’s approval. The deed restriction for property acquisitions for Strategic Public Use will also indicate that the property is to be used long-term as and for publicly accessible space.
The Grant Agreement will also detail the Authority’s rights for approval of any sale/transfer of the Property(ies) including reviewing the reasonableness of the proposed sales/pricing. The Grant Agreement will further indicate that prior to the sale of a property for a Future Development Project, the applicant will submit to the Authority the proposed sales contract and the proposed Future Development Project financials for the Authority’s review and approval.
If the proposed sales price is equal to or greater than the fair market value (based on appraisal), then upon sale of a property for a Future Development Project, the Authority will allow an applicant/grantee to retain up to 15% of the Grant amount as an administrative fee and the applicant/grantee shall return to the Authority an amount equal to: the Authority’s proportionate share of the (future sales price of the property/ies – 15% of the EDA Grant amount attributable to the original property/ies acquisition).
The Town of Hammonton will receive a grant award of up to $544,663 to acquire the 5,000 square foot vacant former Peoples Bank and Trust Company/First Bank of Hammonton building located at 15 Central Avenue. The project will be either a restaurant, retail, or entertainment space which will be determined following the Town’s Request for Proposals process.
For additional information on the Local Property Acquisition Grant Program, please click the links below: