Community Partnership recommends council accept $200,000 from Troy Reinvestment Fund for downtown sprinkler loan program

The Community Partnership on Jan. 12 recommended that city council authorize the Director of Public Service and Safety to accept $200,000 from the Troy Reinvestment Fund to establish a downtown revolving loan fund to help property owners install fire sprinkler systems.

Unidentified Speaker 2, who presented the proposal, said the Troy Reinvestment Fund (TRF) would provide $200,000 and that the city would administer loans ranging from $10,000 to $50,000 to install or prepare to install sprinkler systems. “It's not every day I get to come and, tell council that we have an organization willing to give us $200,000, but it does come with some strings,” the presenter said, describing guidelines TRF reviewed and approved.

Why it matters: organizers said the program is timed to take advantage of upcoming street work in downtown, which should reduce construction disruption and costs for installing fire lines and taps. The Partnership described the program as a way to encourage property owners to safeguard historic and commercial buildings and potentially reduce insurance costs, though insurers determine premiums.

Program details and administration: the loan review committee would evaluate applications; because the loans are small, individual awards would not require full council approval, the presenter said. The 5-year loan term and other terms were set by the Troy Reinvestment Fund, the presenter said. The program uses the same 1.5% closing fee applied to existing city loan programs (for example, CDBG RLF and the small-business development loan program), and applicants would receive an amortization schedule at closing.

Program boundaries: eligibility is limited to downtown properties roughly two blocks in each direction from the square: along Market Street to Water Street and Franklin, and along Main Street to Plum and Mulberry. The presenter cautioned the loan may not cover every retrofit scenario because costs vary by building size and configuration.

Code triggers, inspections and fees: Partnership members asked when sprinklers are required. The presenters and another staff member said sprinklers are not required for downtown buildings unless a change in use triggers code requirements (for example, a switch to assembly or restaurant use); those determinations are made by the building and fire departments and applicants were directed to contact Miami County for building inspections and permit guidance. Mrs. Westfall also warned applicants that adding a sprinkler connection can create an ongoing municipal fee for the fire service line; she said that fee should be disclosed to applicants and the presenter agreed it would be part of program materials.

Oversight and next steps: City staff said they would maintain the TRF-funded loans in a segregated account within the existing small-business loan fund rather than creating a new fund, to simplify state auditing requirements. One Partnership member said they were uncomfortable moving forward with emergency legislation; Mrs. Westfall replied, “We'll move forward.” The meeting record does not show a formal council vote; Partnership members directed staff to prepare emergency legislation and implementation steps for council consideration.

What was not decided: the Partnership did not make final loan awards during the meeting, did not set interest rates beyond noting the 5-year term set by TRF, and did not record a council vote on the emergency legislation. The program presentation said the fire department participated in drafting the guidelines but the Partnership did not adopt any additional mandates beyond the loan program design.

Next procedural step: staff will draft emergency legislation and program materials for council consideration and will notify potential applicants of ongoing fees and permit requirements as the program is finalized.