Keeping in line with one of its visions to revitalize downtown Henderson through arts and culture, the Henderson City Council approved a loan-to-grant program on June 19 that encourages arts businesses to remain on Water Street long-term.
"We're looking forward to working with the artists and continuing to make the Water Street District an arts and culture hot spot," said Michelle Romero, the manager of redevelopment for the city of Henderson.
The Art Rent Subsidy Loan-to-Grant Program provides 25 percent of the first year's rent to qualified arts business owners who set up shop in the Water Street District. Like a regular loan, interest builds over the first five years of ownership. If, after five years, the business is maintained, interest no longer accrues. In the sixth and seventh years of operation, one-twenty-fourth of the loan is forgiven each month. At the end of the seventh year, the loan becomes a grant and the balance is forgiven.
If the business closes at any time before the end of the seventh year, the loan must be paid back at its amortized value.
The arts businesses that take advantage of the program also must become a member of the Downtown Henderson Business Association, participate in Henderson's Third Thursday arts and culture night, have consistent operating hours and present a business and marketing plan.
Romero said the Redevelopment Agency worked with a consultant to produce a program similar to those offered in other cities.
The $153,000 program is funded by tax increment funds that have been collected already, Romero said.
Romero said the benefits of the program are obvious.
"It helps them (the businesses) get established and be able to function in the long term," she said.
Fred Sigman, owner of the Water Street Gallery that will be opening in early September in the Meridian Building at 155 S. Water St., Suite 100, is one of the first two business owners to take advantage of the program.
"It's remarkable that a community such as Henderson is willing to do this to begin with," Sigman said. "It says a lot about the city and what they are doing to help."
Sigman's rent subsidy is matched by his landlord, meaning he will pay for only 50 percent of his rent the first year. He also is involved with a city program that will pay for his signage on the building, which he said is valued at approximately $2,500.
"When you go into business, it's those incidentals that add up really fast," he said.
The Water Street Gallery will have several components, Sigman said, including well-known contemporary art, curating partnerships with the Museum of Photographic Arts in San Diego, traveling tours and a space for artists to rent and take advantage of the Water Street Gallery's marketing and events.
Sigman said he thinks the city is trying to create a holistic center of not only arts, but also other types of businesses.
"The impact of that can only help my gallery with the events we have planned and the exhibitions we're going to organize," he said.
For more information on the Henderson Redevelopment Agency, visit www.cityofhenderson.com.
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