Norwich — In November 2010, when the city and state were gripped by the Great Recession, voters approved a $3.38 million innovative plan to revitalize the depressed downtown with grants and loans to upgrade and occupy long-vacant buildings.

As the 10-year program winds down — the bonds officially end in April — city leaders are tallying up the successes and failures and contemplating whether to seek voter approval next year for a second program.

Jason Vincent, president of the Norwich Community Development Corp., which managed the program, last week produced a 20-page report on the grants and loans issues, outcomes and shortcomings. He presented the report to the NCDC board of directors Thursday and will give a presentation to the City Council on Nov. 16.

“The downtown is stabilized,” he said. “It was a 10-year stabilization after a century of decline.”

At the start, 43% of downtown’s 1.8 million square feet of building space was vacant. Nearly half of that, 21%, was “unoccupiable," with renovation costs out of reach for the bond program, Vincent reported. These include the defunct YMCA at 337 Main St., a large mill at 132 Franklin St. and the small brick Flatiron building at 9-15 Main St.

Instead, NCDC and the committees of local businesspeople and bank staff that reviewed applications focused on getting as many buildings upgraded and occupied as possible.

Since 2010, occupancy rose from 57% to 78% in buildings deemed "occupiable," Vincent reported. Downtown has seen a net increase of 41 new businesses, 35 of which received grants or loans. Four of the nine businesses that expanded during the period received program assistance.

Tracing the increase in tax values proved more difficult, as property values dropped by 12% citywide during the recession, Vincent reported. He estimated values in the downtown program area dropped by only 3%.

All properties approved for bond funding dropped in value by 19% overall, but the value of a dozen properties that received matching code correction grants jumped by 21%. A formerly rundown building at 130 Main St., now part of Harp & Dragon Irish pub, jumped in value by 318%.

The program offered a building code matching grant, a lease rebate for tenants of qualified properties and a revolving loan fund. Private investment was required for the city money. NCDC realized early that the code correction program would be the most beneficial for quick results. The City Council shifted more money into that program.

The code correction program has paid out $1.72 million to 22 projects, 14 of which are completed. Projects totaled $12.05 million — $7 for every city dollar, Vincent reported. The program is tapped out.

The lease rebate program had a higher return, $13 in private investment for every city dollar, with $874,000 allocated to 33 awarded businesses. Only $40,000 remains in the program.

Only eight of the 20 revolving loan applications have been approved, with the $524,000 budgeted for the program paid out. Vincent reported a return on investment of $3 for each city dollar loaned.

Sometimes small grants led to big improvements, he said.

When a sewage smell persisted on Bath and lower Broadway, officials discovered an old, above-ground sewer pipe that ran through three building basements. Not owned by Norwich Public Utilities, the pipe had sprung a leak, threatening to force closure of all three buildings, including the popular Billy Wilson’s Ageing Still at 57 Broadway.

NPU paid for a new sewer main in the street to serve the buildings, and the bond program paid a $5,000 matching grant to connect Billy Wilson's to the NPU sewer line, Vincent said.

Mel Wiese, owner of Wiese Construction at 282 Franklin St., faced a more expensive problem. He had purchased the former Troy Laundry building from the city in 2006. The two-story building fronts on Franklin with a few steps into the office. The property drops sharply in the rear on Chestnut Street.

To open the second floor, Wiese needed an engineered, 130-foot-long, switchback-style handicapped access ramp with railings to reach both the first and second floors, handicapped-accessible bathrooms, lighting and lit emergency exit signs. He obtained a $90,000 matching code correction grant to cover nearly half the $190,000 project cost.

Once completed, Wiese had 7,500 square feet of second story space ready for rent. Assured Quality Homecare, a growing company in a smaller downtown space, learned of the renovated building before Wiese started marketing it and "got first dibs," Chief Operating Officer Caleb Roseme said. The company with 50 employees leased 1,400 square feet of the renovated space in 2017.

Wiese moved his own growing business with 30 employees from the first floor to the larger 1,400-square-foot space on the second floor. Another 1,100 square feet remains available. Architect Fred Marzec & Associates leases part of the first floor.

"There's 80 employees downtown, basically, because of the grant," Wiese said.

The building value has increased 55% from $205,000 in 2008 to $318,000 in 2018.

“The program definitely helped us out,” Wiese said, “because without the grant, we probably wouldn’t have done it on our own.”

In considering whether to create a new revitalization program, city leaders will face several questions: Should the program be expanded to other areas of the city? What incentives should be offered? And how much money should the city put into a new program?

Vincent said a new code corrections program would be the best move for the quickest and most visible results. New businesses and more attractive buildings also entice other owners to fix up their buildings.

“It doesn’t have to be big,” he said. “Small programs, here and there, so we can be as nimble as possible.”

Mayor Peter Nystrom first raised the prospect of renewing the bond program in spring. He favors expanding the program to other commercial areas, including Greeneville, Taftville and Thamesville.

By charter, if the city proposes bonding more than $800,000 on a project or program, it must go to referendum. Nystrom said if the City Council prefers a smaller code corrections program, he would recommend the grants be tied to buildings with occupants already lined up.

Nystrom praised Vincent’s report as “the most in-depth and accurate” accounting of the bond program produced to date, saying it shows the bond investment was worth it for the city.

“It demonstrates you can build public-private partnerships with owners,” Nystrom said. “And investment can produce a good outcome. To have a return of $7 for every city dollar and $13 for every dollar. Those are good numbers.”

c.bessette@theday.com