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Home My WebLink About06 - Modifications - DT Facade Rebate Prog AGENCY BOARD MEETING DATE. MAY 16, 2011 TITLE MODIFICATIONS TO DOWNTOWN FACADE IMPROVEMENT REBATE PROGRAM ~,~' a ~~ y...-i AGENCY SECRETARY USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2~d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER INTERIM E CUTIVE DIRECTOR RECOMMENDED ACTION Approve and authorize Agency staff to implement the proposed modifications to the Downtown Facade Improvement Rebate Program. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on May 3, 2011, by a vote of 5:0 (Walters absent), the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION In July 2008, the Redevelopment 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 applications approved, with one building completed, five projects currently under construction, and one application pending Agency approval. The recommended changes to the current program would include: • Redevelopment Agency Board approval of all Downtown Facade Improvement rebates. • Rebate limited to 50% of total project cost, not to exceed $75,000 per building, as opposed to the current $75,000 pei- storefront. Rebate can exceed the rebate limits only at the discretion and approval of the~gQn~y Board. 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 Modifications to Downtown Facade Improvement Rebate Program May 16, 2011 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. NTE/LO/MM/mlr Exhibits: 1. Map 2. Facade Improvement Marketing Plan 3. Downtown Facade Improvement Rebate Program 6-3 L c Lr a d L ~ a ~+ ~y ~ ~ N W ~ ~+~ W ~ O s.. ~ o d~+ ~ O tC~ v 8t1: W2 .:k~~r ~ ?"~; sls "e ~~. ® ~ r m ~ ~ BLL ELL ~ o ~ Z LLL ~~~ ZLL L m m Z a 80 L W a 9DL V m ~ iri ~ i°n u°~ v D m c°n D LZ N N ~ sLZ zoz m N m N N is Hsna 0 0 0 0 N N N ~N.. 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EAH'®' 1 1 ~~~f~ } u. .~ :e.~ ~,~~ ~ a i d ', td !9 ~/ ®w t® n made I pr®ve ent Downtown Improvement Marketing Plan • Mail information about the program and dates of workshops to explain the progam to each eligible property owner in downtown via certified mail with return receipt • Prominent placement on the City's wesbite • City's homepage • Business Portal • Community Development's homepage ~1~~;. ~`~~ ~ ~.~. ~~~~ m ~~ ~ ~-`~. _, • Prominent placement on Downtown Inc.'s website • Post success stories on the Good News Portal • Press releases to the media about the program upon Agency approval • Develop stories for downtown newsletter • Have information available at the planning counter • Hold design workshops • Sign placement at approved project site to promote the program • Include Downtown Facade Improvement Rebate Program in the upcoming "business friendly" brochure Staff Responsibilities • Devote one day a week at the downtown office to assist with the application process • Bi-lingual staff will be available • Day and time (to be determined) • Door to door business outreach campaign .-1-~` _ 5 EXHIBIT 2 :Ir- S- III .- _.. ti v~t~ .a ~ r. - - ? I THIS PAGE LEFT BLANK INTENTIONALLY 6-6 I. Pu ose The Downtown Facade Improvement Rebate Program is designed to encourage property owners within the Downtown Facade 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 facade is the cosmetic face of a commercial building. Rear, side facades and main building entrances, foyers and vestibules are eligible if so determined by the Agency Board, on a case-by- case basis. Some examples of eligible facade improvements include, but are not limited to: • Exterior building materials and architectural features including decorative the • Signage • Awnings • Steam cleaning of the building exterior • Painting • Skylights in public sidewalks • Elimination/alternatives to bars on windows, e.g. security systems, alarms and cameras • 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 III. Pro~rarn Benefits The Redevelopment Agency will fund 50% of the total project cost up to a maximum of $75,000 per building for eligible improvements, including City permits. The Agency will either reimburse the approved rebate amount at the conclusion of the project, or by making construction progress payments through an escrow account. If the property owner chooses the progress payment option, this will require the Agency and applicant to establish a construction escrow account (as designated by the Agency). The joint escrow account will include funds sufficient to cover total project costs. The Agency will deposit the approved rebate amount up to $75,000 and the applicant will deposit the remaining funds to ensure completion of the project. 6 ~ EXH (g iT 3 Updated 05/06/2011- Edwards CRA Subject to escrow instructions, and in accordance with the progress payment schedule determined in advance between Agency and Owner, the escrow funds shall be released as follows: Agency and applicant funds shall be drawn upon equally as progress payments are released. To implement this option, an approved project milestone and phased budget schedule will be established prior to the application approval and reflected in the escrow instructions. Owner must pay any cost associated with establishment and use of the escrow account. IV. Project Requirements • Project location must be within the Downtown target area (please refer to map). • Facade 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 and must comply with Secretary of Interior standards. • Facade program covers the first two stories of building. Exterior historic architectural features above this level will be accepted on a case-by-case basis with Agency Board approval. • Complete rebate application must be submitted and approved by rebate committee and Agency Board prio~^ 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 and types of materials to be used and desired color schemes. • All project improvements shall comply with current City codes and ordinances. • If occupied, all tenants must have Certificate of Occupancy prior to being allowed to participate in the program. • All project costs must be paid by check and reimbursement requests must include cancelled checks, with correlating invoices and receipts. • Contractor(s) and subcontractor(s) must comply with all state and local laws and regulations pertaining to Prevailing Wage. • Suitable landscaping shall be used to aid in the preservation of community scale and character. • Owner must complete a Facade Improvement Rebate Program application package. V. Documentation Needed • Signed "Rebate Terms and Conditions" form. • Signed "Facade Improvement Rebate Program Application" form. • Signed "Property Maintenance Agreement" form. • Signed "Contractor Resume" form. • Submission of three contractor bids and Contractor Bid Sheet. • Signed contractor qualification statement, as applicable, including contractor's license. • 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. • Approved signage program, as applicable. • Approved landscape plans, as applicable. • Project description and. budget 6 e 8 EXHIBIT 3 Updated 05/06/2011- Edwards CRA • Project milestone schedules with their corresponding cost, as applicable. • Pictures before start of proj ect as part of the initial application. • Color scheme. • Property Insurance, General Liability Insurance and Additional Insured Endorsement • Provide proof of Contractor General Liability Insurance and Additional Insured Endorsement • Provide proof of ownership for subject building VI. Exclusions • Project improvements started prior to Agency Board action. • New construction projects. • Interior improvements other than display window improvements described in section II. • Improvements not clearly visible from street frontage (Exception -approved rear side facade improvements). • Exterior improvements not approved by the Agency Board. • 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"). • Government-owned buildings. VII. Application Approval Process • The Rebate Committee comprised 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 to proceed, including any modifications, or denial of project. The Agency will not assume any liability, should the Agency Board deny the application. • Within 30 days of approval notification, the owner must execute a Facade Improvement Rebate Agreement and Escrow instructions, should the owner exercise the progress payment option. • A "Notice to Proceed" will be issued upon satisfaction of all requirements. VIII. Sign and Awning Removal/Display of Rebate Program Sign • 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. • Applicant maybe required to display a Facade Improvement Rebate Program sign, from the date of rebate approval until the date of the final rebate reimbursement. IX. Property Maintenance Agreement • The applicant must sign and submit the "Facade Improvement Rebate Program Property Maintenance Agreement" which shall be recorded with the County Recorder Office and stipulates that the property must remain in good and attractive condition for a term of five (5) years at the Owners' sole cost and expense. 6 9 ExH ~ g ~'~ g Updated 05/06/2011- Edwards CRA X. Completion of Work • The applicant agrees to all improvements specified in the application and the Rebate Committee and Agency's Board's recommendations and/or stipulations that work will conform to City standards. Under certain submittals applicant plans maybe subject to "Site Plan Review" by the Planning and Building Agency. • 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 and no extension has been granted or requested, the file maybe closed and the Applicant may have to reapply for the program with solid substantiation as to the reason why they were unable to meet the deadline. • Upon completion of all agreed 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. • Expenses without proper supporting documentation will be disallowed. XI. 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 FAt~ADE IMPROVEMENT REBATE AGREEMENT, ESCROW AGREEMENT, AND HAVE BEEN ISSUED THE "NOTICE TO PROCEED." Applicant Name: Please Print Signature: Date: 6 ~ 1 ® EXHIBIT 3 upaateaosio6izoii-Ea~~~ascRa