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. of commercial space and that the Agency, in cooperation with the Economic Development Corporaticn, has succeeded the Wells Fargo program with a highly successful program with Mercury Savings and wan for projects in the $50,000 to $250,000 range. He added that for projects above $250,000, the Agency has implemented an Industrial Development Bond (IDB) program for commercial rehabilitation for projects from $250,000 up to $10,000,000 and that the Economic Development Corporation recently funded a wcal Development Corporation providing access to small business administra- tion financing generally in the range from $250,000 to $500,000. He added that projects larger than $500,000 will be directed toward the IDB program. He stated that it had been the Agency's experience that Mercury is unwilling to fund commercial loans smaller than $50,000 and that this is one area which has not been addressed but is needed by commercial property owners who would like to renovate their property by doing basic facade work, such as sandblasting, painting, new display windows, awnings, marquees, or more attractive signage. He added that such a building face-lift can cost much less than the $50,000 minimum required by the Mercury program and that such face-lifts could have a dramatic visual impact in any given project area. He stated that to meet the needs of commercial property owners whose rehabilitation needs fall below $50,000, staff proposes a direct, in-house commercial rehabilitation loan program offering loans from $20,000 to $50,000 and that for projects costing less than $20,000 staff proposes a commercial rehabilitation rebate program, reimbursing various percent- ages of facade improvements on a graduated scale from $0 to $20,000 with the maximum overall rebate being $7,500. He added that under the loan program, Agency funds would be loaned at 10% interest per annum for commercial rehabilitation projects costing from $20,000 to $50,000 with monthly payments being based on a 20-year amortization with a seven-year maturity. He stated that revenues from a 3% loan fee, monthly principal and interest payments, and loan payoffs will be reloaned thus requiring fewer Agency funds each year with self-funding being attained within five years. He added that the loans would be serviced by an outside company and that target areas would be proposed in downtown Santa Ana, strips along South Main and Fourth Street. . After a brief discussion period in which several of the Commissioners expressed a wish to study the proposal further, it was moved by Commissioner Newcomb, seconded by Commissioner Coil and carried unanimously that consideration of the proposed Direct Commercial wan Program be continued to the Commission meeting of July 19, 1983. MARKS REHABILITATION PROJECT - 402 W, FOURTH STREET The Financial Services Manager gave a brief history of the negotiations regarding this project and pointed out that the Agency was unwill ing to expend further funds since no progress was being shown in the proposed rehabilitation of 402 West Fourth Street. . After a brief discussion in which the Commissioners ascertained that the Marks had received proper written notice of the Agency's intentions in the matter, it was moved by Commissioner Coil, seconded by Commissioner Mack and carr ied unanimously (5: 0) that the Commission authorize the Executive Director to send a notice of defaul t to Ronald A. Marks and Blanche A. Marks pursuant to the Project Agreement, dated December I, 1981, for the rehabilitation of property located at 402 West Fourth Street, 7. A-~ 6A