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Home My WebLink About03 - Modifications DT Facade Rebate ProgramOCTOBER 18, 2010 "GAM1111061YAH X11\ . �W ZT41TJ =1 ITI I =1 ki I A Z44 ERE I €• ,L AGENCY SECRETARY USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1St Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CK•7��[�L11-�C�7 Ia14 Wk 01&".B W Consider proposed modifications to the Downtown Fagade Improvement Rebate Program and authorize Agency staff to implement the Program in accordance with the attached Downtown Fagade Improvement Rebate Program Terms and Conditions. DISCUSSION In July 2008, the Agency Board approved the Downtown Facade Improvement Rebate Program to encourage the revitalization and activation of key storefronts in an effort to stimulate private investment and customer patronage. The rebate program provides assistance to the commercial property owners within the designated Downtown target area, which incorporates the Downtown Historic District, as well as other blocks and buildings vital to the downtown core (Exhibit 1). Since Program approval in 2008, there have been seven program applications approved, with one building completed (West End Theater), one under construction (Pacific Building), and five pending start of construction. The five pending projects would be subject to the modifications proposed in this item (Exhibit 2). Modifications to the Program would include: (1) Agency Board approval of all rebates after review by the Rebate Committee; (2) limiting the rebate to 50% of project costs, not to exceed $75,000 per building as opposed to $75,000 per storefront and (3) adding basement skylight repair or replacement to the eligible list of improvements. A number of the older buildings in the Downtown have basements, with skylights that are located within public sidewalks. Many of these skylights are in need of repair and often prove to be an expensive item for a property owner. Adding this as an eligible expense could ease the burden to small property owners in need of financial assistance. Further, owners are experiencing difficulty in securing a loan in today's market to undertake building improvements. The rebate program was originally designed to reimburse owners for a 3-1 Proposed Modifications to DT Fagade Improvement Rebate Program October 18, 2010 Page 2 portion of their costs at the conclusion of the project. Requiring the owners to advance all the funds may be a deterrent to them participating in the program. The modifications will allow an owner to enter into an escrow agreement with the Agency whereby the Agency's rebate funds (maximum of $75,000) will be deposited into escrow along with the owner's funds to cover the balance of the improvement costs. A progress payment schedule will be developed to allow for escrow to release Agency and owner's funds equally until the Agency funds are depleted and then draw on the balance of the owner's funds through project completion. This will ease 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. By placing the owner's funds into escrow, we can be assured the work will be completed. 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. Upon approval of these modifications, program information will be disseminated in English and Spanish to property owners via direct mail, handouts, posting on the City's website, and articles in the Downtown, Inc. newsletter. FISCAL IMPACT There is no fiscal impact associated with this action. ry"to�eq &da -Z& Nancy T. Ed ards Assistant Dir ctor Community Development Agency CJN/NTE/GL/mlr Exhibits: 1. Map 2. Pending Rebates 3. Downtown Fagade Improvement Rebate Program Terms and Conditions 3-2 t� ,�� '1S a3Wi1»OW 2� :LS HON3ad 9ZE 94E M z4E O4£ 60£ 40E 008 n r �1 O o 1S NO3JandS m m 92 6LZ ON OOZ 94Z 40Z W POE POE ❑ m m tcli o m 644 844 No w cc ct Z L44 GGG Z44 4 m m z a 804 � ` 904 V . 1 — in to � a '> (n m u W (Il D4Z N N 0 ho WE W N N I N N N N N 0 0 0 0 N N N N N N N 1S NIbW d 404 Z04 N r 504 m M N N N 604 011 844 n9 4 944 944 N u� v OZ4 N N n o is 3HOMOAs IS 3HOWVOAs `O 90E. ZZ , 60Z Cl) LOZ ❑ N 3: M m Z nN Om 9Z n 3-3 AVMOb'Oa8 ZO£ m M o m N r Z[6 94E 948 pZE m M ODE ZZE :LS HOU113 Mm Pop 09t 'Is ssou 1= in N r EXHIBIT 2 PENDING REBATES Building/Address Spurgeon Building — 206 W. 4th Street Fiesta Building 1— 220 E. 4th Street Fiesta Building 2 — 201 E. 4th Street Fiesta Building 3 — 301 E. 4th Street Fiesta Building 4 — 300 E. 4th Street (Rangel) Total Approved Rebate Modified Rebate $210,000 $75,000 $120,000 $75,000 $300,000 $75,000 $180,000 $75,000 $165,000 $75,000 $1,175,191 $375,000 3-4 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY DOWNTOWN 1WROVEMENT REBATE ftOGRAM TERMS AND CONDITIONS I. PuMose The Downtown Fagade Improvement Rebate Program is designed to encourage property owners within the Downtown Fagade Improvement boundary area to improve the exterior appearance of their building. Through these improvements, the program is intended to aid in the stimulation of private investment and customer patronage in the City's Downtown. II. Eligible Improvements Eligible facade improvements include those that improve the exterior aesthetic appearance of a building and are visible from the street. By definition, a fagade is the cosmetic face of a commercial building. Rear and side facades are eligible if so determined by the Agency, on a case-by-case basis. Some examples of eligible fagade improvements include, but are not limited to: • Exterior building materials and architectural features • Signage • Awnings • Steam cleaning • Painting* • Skylights in public sidewalks • Elimination/alternatives to bars on windows • Anti -graffiti measures • Landscaping and irrigation (if visible from street) • Decorative and security exterior lighting • Window display improvements such as staging and lighting • Exterior historic building restoration The City has a Graffiti Taskforce that responds immediately in removing graffiti. Please call Dannell Mercado at (714) 647-3308 or visit the City website for further information. III. Program Benefits The City will fund 50% of the total project cost up to a maximum of $75,000 per building for eligible improvements, including City permits. The City will reimburse the approved rebate amount at the conclusion of the project, or by making construction progress payments. Progress payments will require the Agency and owner to open a construction escrow account (as determined by the Agency) to deposit the Agency's portion of the rebate (up to $75,000); and the owner, to insure the completion of the project, shall deposit the difference to cover the total cost of the project. EXHIBIT 3 3 Updated 10/13/10 Subject to an escrow draw agreement, and in accordance with progress payment draws determined in advance between Agency and Owner, the escrow funds shall be released as follows: Agency and owner funds shall be drawn upon equally as progress payments are released. At such time as Agency funds are fully expended, Owner's funds shall then be released for progress payments upon approval by Agency of work completed according to the draw schedule. To implement this option, an approved project milestone schedule will be established prior to application approval and ultimately reflected in an escrow agreement. IV. Project Requirements • Project location must be within the Downtown target area (please refer to map). • Fagade improvements must follow City design guidelines. Additionally, any non- conforming improvements must be removed, if physically feasible. Improvements on registered historic buildings may require approval from the Historic Resources Commission. • Fagade program covers the first 2 stories of building. Exterior historic architectural features above this level will be accepted on a case-by-case basis. • Complete rebate application must be submitted and approved by rebate committee prior to commencement of work. • Supporting documentation may include an architectural rendering (depending upon the extent of the proposed improvements), landscape and irrigation plans, sign plans, paint chips (in compliance with the designated color pallet) and types of materials to be used and color schemes (see designated color pallet). • All project improvements shall comply with current City codes and ordinances • All project costs must be paid with check and reimbursement requests must include paid receipts with correlating invoices. • Contractor(s) and subcontractor(s) must comply with all laws and regulations pertaining to Prevailing Wage. • Suitable landscaping shall be used to aid in the preservation of community scale and character. • Owner must execute a Fagade Improvement Rebate Agreement. V. Documentation Needed • Signed "Rebate Terms and Condition" form • Signed "Fagade Improvement Rebate program Application" form • Signed "Property Maintenance Agreement" form • Signed "Contractor Resume" form • Signed contractor bids • Signed contractor qualification statement, as applicable • Copy of contractor's Santa Ana business license • Evidence of all City Planning and Building permits • Legal documentation indicating the authorized person to sign the application • Property insurance • Signed and approved architectural plans, as applicable • Approved signage program, as applicable • Approved landscape plans, as applicable • Project description and budget 3 _ 2 Updated 10/13/10 • Project milestone schedules applicable. • Pictures before start of project VI. Exclusions • Project improvements started prior to Rebate Committee's written approval. • New construction projects. • Interior improvements other than display window improvements described above. • Improvements not clearly visible from street frontage (Exception - approved rear side fagade improvements). • Exterior improvements not approved by the Rebate Committee. • Improvements without proper and clearly defined documentation. • Trading one type of service/job for another, rather than paying to have the service/job performed (i.e. no "bartering"). • Door handles and locks not associated with new door installation. • Government-owned buildings. VII. Application Approval Process • The Rebate Committee, made up of members from the Community Development Agency and Planning staff, as well as one representative from Downtown, Inc. shall review completed applications and recommend approval of eligible items pursuant to program guidelines to the Agency Board. • Agency Board shall have final approval of all rebates. • Applicants will receive written notice of approval, including any modifications, or denial of project. Within 30 days of approval notification, the owner must execute a Fatsade Improvement Rebate Agreement VIII. Free Sign/Awning & Exterior Clutter Removal • Free removal of old signs and awnings with project manager's approval. • The legal property owner must complete an application for "Free Sign Removal" and enter into a "Right of Entry" agreement with the Agency prior to committee approval. IX. Display of Rebate Program Sign • Applicant may be required to display a Fagade Improvement Rebate Program sign, from the date of rebate approval until the date of the final rebate reimbursement. X. Property Maintenance Agreement • The applicant must sign and submit the "Fagade Improvement Rebate Program Property Maintenance Agreement" which states that the property must remain in good and attractive condition for a term of 5 years or the date the applicant no longer exercises custody and control over property, whichever occurs first. XI. Accomplishment of Work • The applicant agrees to all improvements specified in the application and the Rebate Committee's recommendations and/or stipulations that work will conform to City 3-7 3 Updated 10/13/10 standards. Under certain submittals applicant plans may be subject to "Site Plan Review" by the Planning and Building Agency. • Applicant shall carry out the design, construction, and operation of the project in substantial conformity with all applicable laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the State of California, the County of Orange, the City, or any other political subdivision in which the Property is located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the Agency, the Applicant or the Property, including all applicable federal, state, and local occupation, safety and health laws, rules, regulations and standards, applicable state and labor standards, prevailing wage requirements, the City zoning and development standards, City permits and approvals, building, plumbing, mechanical and electrical codes, as they apply to the Property and the Project, and all other provisions of the City and its Municipal Code (as they apply to the Property and the Project), and all applicable disabled and handicapped access requirements, including, without the limitation, the Americans With Disability Act, 42 U.S.C. § 12101 et seq., Government Code § 4450 et seq., and the Unruh Civil Rights Act, Civil Code § 51 et seq. • A completion date for agreed-upon improvements will be determined at the Rebate Committee meeting and conveyed to the applicant in writing with application approval. If the improvements have not been completed by the deadline, the file may be closed and the Applicant may have to reapply for the program with solid substantiation as to why they were unable to meet the deadline. • Upon completion of all agreed upon improvements, Applicant MUST submit copies of cancelled checks (both sides), paid invoices/receipts, permit copies, proper prevailing wage documentation and a description of completed work and costs involved. XII. Inspection of Project • Before, during and after improvements construction, the Agency staff shall have the right to inspect all exterior work. No rebate check shall be issued until all improvements have been completed to the satisfaction of the Agency and the appropriate documentation has been received, reviewed and processed accordingly. DO NOT START IMPROVEMENTS UNTIL YOU HAVE EXCUTED THE FACADE IMPROVEMENT REBATE AGREEMENT Applicant Name: Signature: Please Print Date: 3-8 4 Updated 10/13/10