REDI Site Revolving Loan Fund

Submission Portal

As part of its five-year economic development strategy launched in 2020, REDI Cincinnati established an initiative around sites & infrastructure to advance the Cincinnati region’s competitive readiness by investing in commercial and industrial sites. This fund is in partnership with The Port and is available for all 15 counties in the 3-state Cincinnati region.

PURPOSE

The fund aims to increase the inventory of shovel-ready sites and improve the region’s premier sites. When a company is looking for real estate to grow its operations, it prioritizes sites with due diligence complete and utilities ready. Site readiness makes a site more attractive and competitive because it can positively impact speed, risk and money for potential end-users. However, site readiness comes at a cost. Oftentimes, communities and public organizations have invested heavily into sites and need support getting them across the finish line.

The REDI Site Revolving Loan Fund supports closing critical infrastructure financing gaps by making patient capital available to sites that have the potential for positive regional impact or that are identified as a priority for the Cincinnati region.

ELIGIBILITY REQUIREMENTS

Site acreage must align with current market demand. There will be a preference for sites that fall within the REDI average acreage site request.
The site must be publicly owned, or the community has an option on the property.
Target end-use must align with one of REDI’s target industries.

INELIGIBILITY

Privately owned or developer-owned sites.
Site acreage that does not align with current market demand.
Mixed-use, retail, restaurant projects, or other opportunities that do not align with REDI Cincinnati’s target industries.

GUIDING PRINCIPLES

The program is targeted to support the development of industrial and commercial sites based on market demand in the region.
The real estate should have received previous site readiness investment prior to requesting funding.
Target end-use must strive to stimulate economic growth (create jobs and capital investment, secure new/retained payroll) and community revitalization.
The community must have an active strategy defined to attract end-users.

ELIGIBLE COSTS | EXAMPLES

Surveys:
- Topographical, archaeological, ecology (wetland delineation), contamination, vegetation, and geotechnical.
Site Preparation:
- Legal, an extension of utilities, infrastructure, grading, tree clearing, retaining walls, excavating and demolition, and conceptual site layouts.
Environmental Remediation:
- Phase 1 and Phase 2 environmental site assessments, groundwater pumping, and treatment, wastewater treatment, bioremediation, removal and disposal, thermal desorption, and incineration.

PARAMETERS OF LOAN (AVAILABLE FUNDING)

Loan Amount: Up to $75,000. Proof of payment will be required for eligible costs once costs are incurred.
Contribution: Between 20% and 75% of eligible costs, up to $75,000.
Term: 5 years
Interest Rate & Repayment:
- 0% interest rate will be applied in years 1 through 3.
- Principal paid within years 1 through 3 will result in a 15% discount on principal (e.g., loans for $75,000 will decrease to $63,750).
- The interest rate will be fixed at the prime market rate and will accrue years 4 through 5 but will not be due until loan maturity.
Loan Origination Fee: 1% of loan principal.

REVIEW & SELECTION PROCESS

All interested parties will be required to complete an application to be considered eligible for financial support.
All applications will be reviewed, vetted, and selected by REDI Cincinnati’s Loan Committee and the Loan Committee chair.
Once fund recipients are selected and applications are approved, the applicant will receive a formal offer letter and promissory note from REDI Cincinnati for full execution.