06 - Modifications - DT Facade Rebate Prog

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Modifications to Downtown Facade Improvement Rebate Program May 16, 2011 Page 2 • Adding basement skylight repair or replacement to the list of eligible improvements. Currently basement skylights are not included among the eligible items. • Adding decorative the repair to the list of eligible items. • Adding installation of alarms and cameras for security systems to the list of eligible items to encourage the elimination of security bars on windows. • To ease the cash burden for property owners, an escrow agreement option will be available in addition to the current cost reimbursement mechanism in the guidelines. The escrow account, established with Agency and owner's funds, will allow for progress payments to be made prior to the project completion. This process would guarantee the completion of the project. • The program will continue on a first-come, first-served basis as program funds are available. ® Rear, side facades and main building entrances, foyers and vestibules are eligible if determined by the Agency Board, on a case-by-case basis. • Renovations for historically significant icons and large buildings with multiple tenants are eligible if determined by the Agency Board on a case-by-case basis. • Applicants will receive written notice of approval, including any modifications, or denial of project. The Redevelopment Agency will not assume any liability should the Rebate Committee or the Agency Board deny the application. The rebate program was originally designed to reimburse owners for a portion of their costs at the conclusion of the project. Requiring the owners to advance all the funds may be a deterrent to their participation in the program. The proposed modifications will allow an owner to enter into a joint escrow agreement with the Agency whereby the Agency's rebate funds (maximum of $75,000) will be deposited into the escrow along with the owner's funds to cover the total cost of the improvements. A progress payment schedule will be developed to allow for the release of Agency and owner's funds equally, thereby, easing the cash burden to the owner. These arrangements will be reflected in the Rebate/Escrow Agreement to be signed by the Agency, owner and contractor. Depositing all of the project funds into escrow will help assure completion of work. In order to effectively reach out to all property owners in the Downtown, a marketing plan for the program has been developed and is included as Exhibit 2. Upon approval of these modifications, program information will be disseminated in English and Spanish to all property owners via direct mail, handouts, posting on the City's website, and articles in the Downtown, Inc. newsletter. The proposed program modifications and guidelines are reflected in Exhibit 3. The rebates will continue to be available on a first-come, first-served basis as program funds are available in the Agency's budget. 6-2