Loan program to encourage development on North Walton in Bentonville

BENTONVILLE -- A new loan program will help spur and accelerate rehabilitation and enhancement projects along North Walton Boulevard.

Dana Davis, Bentonville/Bella Vista Chamber of Commerce CEO and president, announced Thursday the creation of the North Walton Loan Consortium.

At A Glance

North Walton Loan Consortium

Eight banks have contributed $2 million each for a total of $16 million for the program. The consortium will run through Dec. 31, 2017, if the money hasn’t been committed before then.

The eight banks are:

• Arvest Bank

• Bank of Gravett

• Centennial Bank

• First Security Bank

• Grand Savings Bank

• Iberia Bank

• Intrust Bank

• Simmons Bank

Source: Bentonville/Bella Vista Chamber of Commerce

Web Watch

The North Walton Boulevard Enhancement Plan was adopted by City Council in 2013. The plan can be viewed online at www.bentonvillear.c….

Source: Staff report

The consortium consists of eight banks that have contributed $16 million, or $2 million each, to the program.

"It will provide financing at lower interest rates to qualified individuals and entities with viable proposals for the enhancement of this corridor," Davis said.

Loans generally will have seven-year terms or less. The minimum loan amount will be $50,000.

The maximum interest rate will be "Wall Street Journal Prime adjusted daily or a fixed rate equal to a 2 percent spread above the corresponding Federal Home Loan Bank Secured Connect amortized balloon advance rate," according to a chamber news release.

The process to get a loan has three main steps, Davis outlined. Those interested will file a notice of intent with the chamber, which will determine if the project will result in improvement of a structure or construction that will enhance the area. The applicant will then submit a formal loan application to the consortium, he said.

The corridor applicable to this program includes properties within one block east or west of North Walton Boulevard between Ridgefield Street and West Central Avenue, Davis said.

North Walton Boulevard will be a main entrance into the city once the bypass is completed at Interstate 49, Davis said.

"We need to make sure it's something we're proud of as a community," he said. "That's why we hope that this program will help accelerate the redevelopment of the corridor."

City officials have targeted North Walton Boulevard as one of the next areas to focus on developing.

The City Council adopted the North Walton Enhancement Plan in 2013, which emphasizes better and safer access for motorists and pedestrians, pleasing aesthetics with inviting streetscapes and architecture updates and establishing a compatible mix of residential and commercial development.

The city hired Hight Jackson Associates last year to develop a plan for to corridor, which has been completed.

The chamber's Small Business Council also has established a North Walton Boulevard subcommittee to market the plan to property and business owners along the corridor, Davis said.

Troy Galloway, community and economic development director, compared the North Walton Enhancement Plan to the downtown development plan the city implemented several years ago that sparked private investment and development downtown.

"We came up with a plan we think is unique for North Walton Boulevard, and we think that the same sort of investment and the same sort of effort can accomplish similar results over time," he said.

Janet Atwood, owner of Atwood Design, lives about a half mile west of North Walton Boulevard. She has worked on several home design projects downtown and seen property value increase with development activity.

"As a homeowner, I'm really looking forward to (the loan program) protecting property values for me," she said. "As well as a person who designs homes and remodels, it creates a lot of great business opportunities."

North Walton Boulevard has some built-in advantages, such as the great neighborhoods around it and demographics making it favorable for businesses to be successful, Galloway said.

"I think what we've put together is a combination that is going to work very nicely," he said. "That's a vision, that is a nice plan, and now you have financial institutions that are saying we're willing to help you invest in this area so let's make it happen."

NW News on 01/30/2015

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