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HomeMy WebLinkAbout8.2 Commercial Facade Grant~~~~ Off' nU~~~ /ii ~ 111 L~~ - ~ ~~~ DATE: TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL CITY CLERK File #470-50 December 20, 2011 Honorable Mayor and City Councilmembers ~~ Joni Pattillo, City Manager ° ~' Adoption of Commercial Fagade Improvement Grant Program Prepared by Hazel Wetherford, Economic Development Analyst EXECUTIVE SUMMARY: Staff is seeking City Council authorization to implement a Commercial Fagade Improvement Grant Program for commercial businesses in the Downtown Dublin Specific Plan Area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road as part of the City's continued efforts to support economic development activities in Dublin. FINANCIAL IMPACT: If adopted, the Program would permit commercial property owners, or tenants with long-term leases (five or more years remaining on the lease at the time a Program application is submitted) to apply for either: 1) a mini-grant for reimbursement of up to five thousand dollars ($5,000); or 2) a matching grant, which would provide reimbursement for two-thirds of the cost of commercial building fagade improvements. The total cost of the improvement work must be more than five thousand dollars ($5,000), and may not exceed a maximum amount determined by the Fiscal Year budget cycle annually. In Fiscal Year 2011/2012, the maximum amount is seventy thousand dollars ($70,000). Sufficient funds have been included in the Fiscal Year 2011 /2012 budget. RECOMMENDATION: Staff recommends that the City Council Fagade Improvement Grant Program. ~ Submitted By Economic Development Director adopt the Resolution establishing the Commercial ~, Reviewed By Assistant City Manager Page 1 of 2 ITEM NO. 8.2 DESCRIPTION: One of the City Council's FY 2011/12 strategic initiatives for Economic Development is to create a Commercial Fagade Improvement Grant Program. The program objective is to improve the physical appearance of the area, encourage the retention of existing businesses, as well as increase property values, tenant stability, and lease rates for the property. Under the proposed Program, commercial property owners, or tenants with long-term leases (five or more years remaining on the lease at the time a Program application is submitted) within the Downtown Dublin Specific Plan Area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road will be able to apply for one of two fagade improvement grants. Applicants will have the option between 1. Mini-Grant -this grant provides reimbursement in the amount of five thousand dollars ($5,000) with no match requirement; or 2. Matching Grant -this grant provides reimbursement for two-thirds of the cost of commercial fagade improvements. The total cost of the improved work must be more than five thousand dollars ($5,000), and may not exceed a maximum amount determined by the Fiscal Year budget cycle annually. In Fiscal Year 2011/2012, the maximum amount is seventy thousand dollars ($70,000). Receipt of a matching grant requires the approved applicant to contribute one-third of the total cost of the fagade improvement costs. In addition, the City will provide approved applicants with up to five hours of architectural design services for exterior commercial building fagade improvements at no cost to the applicant. Funds for the Program are available on a first come, first served basis. All grant proceeds are to be used for labor and materials directly related to the fagade construction. Disbursement of grant proceeds to approved applicants will be in a reimbursement payment issued after City deems the project complete, and upon submission of invoices, proof of payment, and subject to approval of those invoices and proofs of payment by City Staff. Staff recommends that the City Manager receive authorization by the City Council to waive fees associated with development costs, time and materials and building permit fees except for California state mandated fees that include, but are not limited to the Strong Motion Instrument program and the California Green Building fees for approved projects that receive grant funding pursuant to the Program. Staff presented this Program to the Economic Development Ad-Hoc Committee on September 26, 2011. This Program falls under the Committee's purview to explore new incentives to promote the City's economic development efforts. The Committee is recommending the Program and is requesting that the full City Council consider the new Program for adoption. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Adopting a Commercial Fagade Improvement Grant Program Page 2 of 2 RESOLUTION NO. -11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A COMMERCIAL FACADE IMPROVEMENT GRANT PROGRAM WHEREAS, the City Council has made economic development a high priority and has asked Staff to evaluate possible incentives to renovate or update commercial areas in Dublin; and WHEREAS, the City Council desires to develop the commercial fagade improvement grant program; and WHEREAS, the Program offers commercial property owners, or tenants with long-term leases (five or more years remaining on the lease at the time a Program application is submitted) to apply for either 1) a mini-grant for reimbursement of up to five thousand dollars ($5,000); or 2) a matching grant, which would provide reimbursement for two-thirds of the cost of certain commercial building fagade improvements; and WHEREAS, the City will also provide architectural design services to approved applicants, up to a maximum of five hours, for exterior commercial building fagade improvements; and WHEREAS, the City Council believes that this Program would encourage the leveraging of public funds and private investment to enhance the physical appearance and economic vitality of commercial businesses in the Downtown Dublin Specific Plan Area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road. NOW, THEREFORE BE IT RESOLVED that the City Council adopts the Commercial Fagade Improvement Grant Program attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is authorized and directed to waive City fees associated with development costs, time and materials and building permit fees except for fees mandated by the State of California, for projects that receive approval for grant funding under the Commercial Fagade Improvement Grant Program. PASSED, APPROVED AND ADOPTED this 20th day of December, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Exhibit A COMMERCIAL FACADE IMPROVEMEI~IT DuBLrN C.~RAI~IT PROC RAM C UIDELII~IES 1. PROGRAM OVERVIEW The Commercial Facade Improvement Grant Program ("Program") is an endeavor of the City of Dublin to leverage public funds and private investment to enhance the physical appearance and economic vitality of commercial businesses in the Downtown Dublin Specific Plan Area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road. The Program offers two facade improvement grants, as well as up to a maximum of five hours of architectural fees to help cover design costs. The long-term objective is to upgrade the Downtown Dublin Specific Plan Area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road by improving the physical appearance of the area, encouraging the retention of existing businesses, increasing property values, tenant stability, and lease rates for the property. 11. PROGRAM COMPONENTS A. Architectural Design The City will provide architectural design services to approved applicants, up to a maximum of five hours, for exterior commercial building facade improvements. B. Facade Improvement Grants Mini-Grant -This grant provides for reimbursement of up to Five Thousand dollars ($5,000) for commercial building facade improvements with no match requirement. ii. Matching Grant -This grant provides reimbursement for two-thirds of the cost of commercial building facade improvements. The total cost of the improvement work must be more than Five Thousand dollars ($5,000), and may not exceed a maximum amount determined by the Fiscal Year budget cycle annually (in Fiscal Year 2011/2012, the maximum amount is Seventy Thousand dollars ($70,000)). Receipt of a matching grant requires the approved applicant to contribute one-third of the total cost of the facade improvement costs. Grant proceeds are to be used for labor and materials directly related to the facade construction. Tools may not be purchased with grant funds, but tool rental is allowable. All improvements completed through the Facade Improvement Program are "public work" as that term is used in Section 1720 of the California Labor Code. In accordance with Labor Code section 1720 et seq., prevailing wages shall be paid for all facade improvements. All estimates and payments for construction and installation of facade improvements shall include prevailing wages, and shall otherwise comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6 and 1813 of the California Labor Code and all other applicable laws and regulations with respect to prevailing wages. All contractors awarded a work contract under this program will be required to provide certified payroll documents to City staff. Disbursement of grant proceeds to approved applicants will be in a reimbursement payment issued after City deems the project complete, and upon the submission of invoices and proof of payment and subject to approval of those invoices and proofs of payment by City staff. Construction shall be completed within 120 days after the City issued Notice to Proceed. If the project extends beyond the scheduled completion date, prior staff approval is required. This program is primarily geared toward commercial property owners. However, business owners who have long-term leases (five or more years) wishing to participate in the Facade Improvement Program may also apply. Applications for business owners will be reviewed on a case-by-case basis. C. Fee Exemption The following exemption applies: 1. The City Manager is authorized to waive City fees associated with development costs, time and materials and building permit fees for projects that receive grant funding under the Commercial Facade Improvement Grant Program. This fee exemption does not apply to fees mandated by the State of California including, but not limited to, the Strong Motion Instrument program fee and California Green Building fees. 111. ELIGIBILITY A. Eligible Applicants/Areas Owners or long-term tenants* of commercially zoned property located within one of the following areas are eligible to apply for assistance: 1. Downtown Dublin Specific Plan area, or 2. Segment of Dublin Boulevard between Village Pkwy and Dougherty Rd. *Terzarzt.~ Frith long-term leases (five or more years remairurzg orz the lease at the tzme a Program apphcatzorz is submitted) mint have the propertJ~ o~rrzer's ~rritterz corzserzt before arty improvements are made. Irz addition, the grant application must be signed by the propert~~ o~rrzer. B. Eligible Types of Improvements Eligible improvements include, but are not limited to: • Removal of old signs, awnings and other exterior clutter • Exterior cleaning and painting • Repair or replacement of exterior siding (including the construction of new facade elements and architectural details) • Installation of new entry doors that meet ADA accessibility requirements • Installation of display windows • Installation of new canvas awnings over windows and entries • Installation of new signs • Installation of new exterior lighting • Installation of permanent landscaping • Exterior mandatory Title 24 upgrades Additional improvements that are deemed to be consistent with the intent of the program will be reviewed and approved/disapproved on a case-by-case basis by the Economic Development Director. C. Review Process All proposed facade projects/remodels must be approved by the Community Development Director prior to being accepted into the program. Project improvements commenced prior to City approval are not eligible for this Program. IV. FUNDING Funding for this Program is appropriated by the Dublin City Council as part of its annual budget process. There is no guarantee of the amount of funds that will be appropriated each year. Funds for the Program are available on a first come, first served basis. If funds are exhausted at the time of application submittal, staff will retain the application. If additional funds become available, staff will contact applicants in the order applications were received. A. Grant Amounts Eligible property owners or tenants who propose facade improvements can apply for one of two grants. 1. Mini-Grant This grant provides reimbursement for commercial building facade improvements to approved applicants in the amount of up to Five Thousand dollars ($5,000), with no match requirement. 2. Matching Grant This grant provides reimbursement to approved applicants for two-thirds of the cost of commercial building facade improvements. The total cost of the facade remodel must be more than Five Thousand dollars ($5,000), and may not exceed Seventy Thousand dollars ($70,000). The amount of the City grant shall not exceed two-thirds of a maximum of Seventy Thousand dollars ($70,000) ineligible expenses. The Matching Grant requires the applicant to contribute one-third of the total cost of the facade remodel, and to document its expenditures. Disbursement of grant proceeds to approved applicants will be in a reimbursement payment issued after City deems the project complete. All reimbursement requests must include proof of payment and other supporting documentation, as deemed necessary by the City (i.e. invoices, cancelled checks, etc.), sufficient to demonstrate to the City's satisfaction that all facade improvement costs have been paid. The City of Dublin reserves the right to cancel or modify this Program at any time prior to grant approval, without notice. Continuation of the Program is subject to sufficient funding as appropriated by the Dublin City Council. V. IMPLEMENTATION WORK All improvements shall conform to the City of Dublin Building Codes, Zoning Ordinance, and applicable Design Guidelines. Proposed facade remodels are required to comply with Chapter 8.104 of the Site Development Review Chapter of the Zoning Ordinance (Chapter 8.104). Project improvements commenced prior to the City's issuance of a Notice to Proceed are not eligible for this Program. City staff will be available to work with approved applicants to assist in the coordination of the project. City staff will carry out periodic inspections. have read and received a copy of these guidelines. Printed Name Date Signature COMMERCIAL FACADE IMPROVEMEI~IT Dvs~i`N C~RAI~IT PROGRAM APPLICATIOI~I Please fill out this application completely and submit or send to: Citti~ of Dublin Attention: Economic De~~elopment Department 100 Ci~~ic Plaza Dublin, CA 9568 (925) 833-6650 SECTION 1. APPLICANT INFORMATION Name: Circle All That Apply: Propern~ O~~ner Business O~~ner/Tenant Business Name: Property Address: Mailing Address: Assessor's Parcel Number: Dati~time Phone Number: Email: Total Number of Businesses in Building: Name(s) of Other Businesses: SECTION 2. PROPERTY OWNER INFORMATION (complete if terzarzt is applicant) Property O~~ner Name: Property O~~ner Mailing Address: Property O~~ner Daytime Phone Number: As the legal o~~~rzer of the above propertJ>, I hereby grant authorization to complete the facade improvements indicated on this application. Signature: SECTION 3. FUNDING Date: Grant (please check one): ^ Mini-Grant (Reimbursement in the amount up to $5,000) ^ Matching Grant (Reimbursement of two-thirds the total project cost from $5,000 up to $70,000) Grant Amount Requested: $ Estimated Total Froject Cost: $ SECTION ~. SCOPE OF WORK General Description of Work: SECTION 5. ACKNOWLEDGMENT We certify that the o~~ner is the property o~~ner of record and that there are no cui7ent code enforcement actions pending against the propertv~. I ha~~e read and understand the Frogram Guidelines and accept them. I certify that I am qualified and ~~ill abide by such conditions set forth in this application and all reasonable conditions ~~luch may be issued by the City of Dublin in the implementation of this project. Property O~~ner(s) Signature: Business O~~ner(s) Signature: Date: Date: Date: Date: 1755179.1