Guest presenter outlines grant and tax-credit options for Demorest downtown redevelopment

Guest presenter Jessie Owensby outlined state, federal and local financing and incentive options the Demorest Downtown Development Authority could use to renovate historic properties and spur downtown redevelopment.

Owensby said historic-preservation tax credits could cover as much as 25% of eligible rehabilitation costs when projects partner with private investors, and she described several grant programs that the DDA could pursue. She identified DCA grants as one option (awards up to $1 million typically requiring a 50% local match) and noted Appalachian Regional Commission and USDA community-facility grants (awards up to $99,000) as possibilities for infrastructure such as sidewalks and site work.

The DDA heard specifics on a proposed revolving-fund model in which the DDA would receive a grant and loan funds to an investor. Owensby described a typical funding stack in which an investor secures 10% in traditional financing, with 40% of the project funded through the Georgia Cities Foundation and 50% through One Georgia; the investor would then repay the DDA with interest. She cautioned that "careful vetting" would be necessary because of the risk of investor default.

Owensby emphasized prioritizing renovation of existing historic properties and noted that Rural Zone designation can create credits tied to acquisition, job creation and renovation costs; she said the city would need to define zone boundaries. She told the board that applications are due in early fall and suggested targeting a 2026 application cycle; she also said the Rural Zone program runs on five-year terms and began in 2018.

On housing redevelopment, Owensby said projects typically require an official blight designation and identification of at least two blight criteria, as well as a responsible enforcement official (for example, a code enforcement officer or fire marshal), before redevelopment incentives or programs could apply.

She offered planning assistance to the DDA for early-stage planning, grant preparation and redevelopment-framework development, and reminded members that the DDA could vote on a district boundary map that would then be submitted to the City Council and filed with the State Office if approved. Additional ideas discussed included applying for CHIP grants for renovation or new construction; having the DDA adopt preservation-review duties (for example, façade review and preservation language in bylaws); preparing a redevelopment plan with clear project criteria; and exploring annexation incentives and a property "wish list." A brief remark noted a potential long-term benefit of lower water rates for some properties depending on annexation and utility arrangements.

Procedural actions recorded in the minutes: DDA member Patti Davis moved to approve the meeting agenda, and DDA member Christy Ryals seconded; the motion carried unanimously. Later, the board voted to enter executive session at 5:38 p.m. to discuss real estate and lease matters (mover recorded as Shawn Allen; seconder recorded as Christy Ryals); the session ended at 6:11 p.m. The public minutes also record, without additional detail, "First motion: David Second motion: Allen" during the executive session. The meeting reconvened and adjourned at 6:12 p.m. on a motion by Shawn Allen and a second by Patti Davis.

The DDA discussed next steps the board could take if it chooses to pursue these programs: draft a redevelopment plan with project criteria, consider a vote on district boundary maps for state filing, and begin preparation for grant applications expected in the early-fall window.