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HomeMy WebLinkAbout8.2 FacadeEnhancementProgram ."-' ~! I ~,i.. L., ~ 'FI .! . .. CITY CLERK FJ LE # DI?lJI2lIQ]-12J1Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 13,1996 SUBJECT: Facade Enhancement Program Prepared by: Greg Reuel, Economic Development Manager EXHIBITS ATTACHED: Exhibit 1: City of Cloverdale Facade Improvement " P-rogram__N.""~'"_'''''"_'''''__.''''''''' ,-..,,, " City of Roseville Facade Renovation Program ~.'~_ r "...,.......~~ ! r' ,~~....",-_......., ".. Exhibit 2: RECOMMENDATION: .~t~ \ It is Staff recommendation to not implement a Facade Enhancement Program due to lack of funds and current market conditions that are facilitating store front improvements in Dublin without the help of a City Contribution. If Council decides to implement a Facade Enhancement Program using General Fund moneys, Staff recommends a minimum funding level of $25,000. FINANCIAL STATEMENT: There would be no financial impact to the City if the program is not implemented. If the Council decides to implement a Facade Enhancement Program using General Fund moneys, Staff recommends a minimum funding level of $25,000. If it is implemented as a grant program, then new funding would need to be appropriated each year. If it is implemented as a low interest loan program, then funds could be used on a revolving basis as they become available. DESCRIPTION: OVERVIEW The City of Dublin has long been the commercial center for the TrI-Valley area with approximately 3.7 million square feet of commercial space for lease. Unfortunately, many commercial/retail buildings in Dublin were built in the 1960's and are starting to date, themselves. New commercial development In Dublin coupled with new development in San Ramon, Pleasanton and Livermore add to the vintage facades of numerous Dublin businesses. There is nothing inherently wrong with vintage storefronts unless they become a deterrent to. sales and success of Dublin businesses. Danville and Pleasanton use their older buildings to their advantage. ------------------------------------------~--------------------~ COPIES TO: H/greg/213facad.doc ITEM NO.~ Addressing the issue of what seemed to be increasing vacancies due to deteriorating and dated storefronts was the reason for establishing a Facade Enhancement Program as a high priority goal for 1995. ." '." PROGRAM PARAMETERS Numerous California Cities have instituted storefront improvement programs to help deal with the issue of blighted downtown shopping areas and deteriorating buildings. Staff has researched programs that are being used in San Jose, Cloverdale, Fillmore, Shasta Lake, Roseville and San Pedro. ",4<1\,. Although no two programs are totally alike, they all offer funding, (typically grants) to be used for extemallmprovement of commercial and industrial buildings. "..........,_...-.....-..fIl'..,..~_"'~IIN~'~'~_.....'41..^.....,'"""".1 r. 4,1III1II/I'"~.._"'~P"'_,_......"'._'..............."","'_.. ",..- ... ~i:."'II!I.I,,",~~. I "~.""""~~.~.........~:.,...t'............ All of the cities contacted are using redevelopment funds in project areas that have been classified as blighted project areas. The majority of the cities contacted use all of their allotment each year and feel the program has been successful. A summary of their programs is as follows: . ~ 1" STORE FRONT IMPROVEMENT PROGRAMS CITY SOURCE TYPE MAXIMUM AMOUNT $ 3,000 $ 17,000 $ 40,000 $ 5,000 $ 10,000 MATCH FUNDS AVAILABLE $ 10,000 $ 30,000 $ 100,000 $ 75,000 $ 290,000 e.'. i. ." . Shasta Lake Cloverdale Fillmore Roseville San Jose Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment 3% loan grant grant grant grant None Yes No 50% No Enclosed for your review in Exhibit 1 & 2 are the program outlines for the City of Cloverdale and Roseville. Both of these cities allot grants in relationship to storefront size and try to keep their programs simple and quick to execute. DUBLIN FACADE ENHANCEMENT PROGRAM ~ The obvious dilemma of starting a Facade Enhancement Program in Dublin is the lack of redevelopment funds for the program. Funding would either have to come from the general fund or outside sources such as CDBG funds. Staff found no other cities sustaining a storefront improvement program with general fund moneys, so the CDBG program was evaluated as a potential source of funding. The problem with using COSG funding is the complexity of using CDSG funds for brick and mortar projects while meeting. national objectives. If COSG funds are used for the actual construction of the store front improvements, then all general contractors and subcontractors have to submit an enormous amount of paperwork verifying labor standards, Davis Bacon rates and a number of . other criteria that makes the process quite burdensome. No other cities are using CDBG funds for .:., their storefront improvement programs. '. t R ~ .~. :":. San Jose is using CDSG funds in one redevelopment project area for design services only. Staff looked into the use of CDSG funds for design of storefront improvements in Dublin and found that it would be difficult meeting the national objectives of targeted . income job creation or the elimination of blight. Again, cities that have redevelopment agencies and have already established a finding of blight are most apt to use the COSG dollars for design services. County staff that administer the CDSG program were unable to help with any ideas on how Dublin could use part of their COSG allocation for a storefront improvement program. RETAIL TRENDS IN DUBLIN As mentioned earlier, Dublin has been the commercial hub of the TrI-Valley area. Sales tax dollars generated in Dublin constitute approximately 30% of the City's revenues. What worked in the .. "'60iS:-smallen:o"mmercial"-centers:'~nas'. glVeri"'way' to.'the "SI9-" Sox"'-r-e1allers; outlet retalllng-ancr----- 60,000+ SF grocery super stores. New commercial development within the City coupled with new developments in San Ramon, Livermore and Pleasanton have added to the aged look of certain Dublin businesses. The net result is that the City has ended up with a handful of buildings that remain unoccupied due to external appearance, location and size. Most cities using a storefront improvement program are locations that have buildings in much worse shape than what is found in Dublin. They have deteriorated to such an extent, that long periods of vacancies have followed their deterioration. Dublin, on the other hand, has capitalized on its location to keep commercial vacancies low without major concern of external appearance. During the last year, retail vacancies dropped from 6.3% to 5% with a total inventory of 2,623,164 sq. ft. and office vacancies dropped from 19.9% to 6.9% with a total inventory of 1,101,390 sq.ft. These statistics would seem to indicate that commercial leases have remained strong without a storefront improvement program to help attract new tenants. In addition, numerous Dublin businesses and landlords have gone ahead with storefront improvement programs without a city assisted program. Crown Chevrolet, Fitness 2000, Ultimate Car Stereo, VaUey Auto Center and the RosslMichael's Shopping center all made investments to enhance their facade appearance without the City's help. Staff has had discussion with other retail establishments and landlords that are also planning to improve their sites in the near future in order to stay competitive. The use of a Storefront Improvement Program can be viewed in two different ways. First, it can be looked at as an equity investment by the City ~o help stimulate building retrofit to companies wanting to improve their, image and that of the CitY's. On the other end of the spectrum, it can be viewed as a City subsidy program to help unsuccessful Dublin landlords that are not able to make necessary changes on their own. CONCLUSION Staff has investigated funding sources and has determined that there are no funding sources other than the City's General Fund for a Storefront Improvement Program. On the PP,sitive side, because of the strategic location of the City, a very low commercial vacancy rate exists regardless of building design and age. Facade enhancement is also happening in the City as a result of natural market factors that do not rely on a contribution from the City. On the cautionary side, the City is starting to see an erosion of sales due to new competition in Pleasanton, San Ramon and Livermore. The Dublin Tal\get and Mervyn's stores along with our market and drug stores are facing the challenges of external competition. Facade enhancement ." programs have tended to help smaller proprietors and not major retailers such as Target and Mervyn's. The City is attempting to help these businesses with better access, signage, circulation and advertising. It is Staff recommendation to not implement a Facade Enhancement Program due to lack of funds and current market conditions that are facilitating storefront improvements in Dublin without the help of a City Contribution. If Council decides to implement a Facade Enhancement Program using General Fund moneys, Staff recommends a minimum funding level of $25,000. : ~, 1l,iM.~~....." \ ''""'"'_........\,'''',.~,,_..... . _I., __~ ~.,.l.~,~l". ., ~" 1 Il, l ''''',' .. ~,J.",~_,_~ ,.Jl.....l.. ..; ,"- .'. .. 1-- - . . . .,". City of Cloverdale Community Development Agency Facade Improvement~ . Assistance Application Building Owner/Applicant Name Project Name Date Project Address Phone Front Footage Max % (City Use Only) escription of Facade Improvement (Attach description if necessary) The City of Cloverdale will help commercial property and business owners improve the appearance of their business facades by providing grants for part of the cost of eligible improvements. Please note this is a grant, not a loan program. Eligible Improvements: Eligible improvements include exterior painting, signage, facade restoration, landscaping. and related exterior improvements. Applications will not be accepted to fInance improvements already completed. Area of Program: Grants will be restricted to the Downtown Business District and established commercial and industrial districts within the Agency boundaries. Preference is given to buildings containing operating businesses within the Downtown Business District Grant Amounts: Funds available for the fiscal year 94-95 are 530,000. Grants will be made on a first come, first served basis, in the following amounts: Buildine- Front Footaie Percent ofImorovements Cost Maximum Grant 25 feet or less 80% S2,5oo 25 to 35 feet 75% $3,500 35 to 45 feet 70% $4,500 45 to 55 feet 65% S5,5oo 55 to 65 feet 60% S6,5oo . 65 to 75 feet 55% $7,500 More than 75 feet 50% $8,500 Application Process: Application must include drawings or renderings with written estimates from a bonafide trade person, contractor, or supplier. Improvements must comply with all City building code and sign si~ standards. Completed applications should be submitted to the City's Community Development Depanment for review. Grant award decisions will be made within 30 days of receipt of a completed application. All improvements must be completed within 90 days of Building Permit issuance. For information call Joe C. Heckel, Planning Director and Project Coordinator at 894-2521. Payment Procedure: After work is completed and supplier/vendor invoices have been submitted to the City for verification, the grant award will be immediately forwarded to the applicant SIGNATURE OF APPLICANT DATE Cloverdale Community Development Agency 124 N. Cloverdale Blvd. Cloverdale CA 95425 707 894-2521 EXHIBIT 1 . . . FY94-95 FACADE IMPROVEMENT PROGRAM CITY OF CLOVERDALE COMMUNITY DEVELOPMENT AGENCY; INTENT: To enhance the exterior of commercial or industrial buildings in the Agency area through minor upgrades. ELIGIBLE ITEMS: -Painting -Sign repair or replacement -Landscaping -Lighting . , -Awning repair or' repl:fcement'" '<' ,,,,,<.,.,,,~_',^.~~e'.'. -Minor restoration or rehabilitation of exterior facade OTHER TYPES OF ASSISTANCE: -Architectural review or evaluation of rehab needs -Assistance in funding architectural or engineering fees up to maximum of 50% of COStS , -Assistance in reviewing construction bids or obtaining a contractor -Assistance in funding Building Permit fees LEVEL OF POTENTIAL P ARTT CTP A TTON: Building Front - feet 25 feet or less 26 to 35 feet 36 to 45 feet 46 to 55 feet 56 to 65 feet 66 to 75 feet more than 75 feet Percent of Improvement Cost 80% 75% 70% 65% 60% 55% 50% Maximum Grant 52.500 3.500 4,500 5,500 6.500 7,500 8.500 "Public or private lots where the public has access to the building. double frontage lots and second story structures can be used to expand the amount assigned to the building. Example: a building with two >75 foot eligible frontages or a two-story structure would be fundable for two times the 58.500 amount, but not more than 50% of the project cost.. ELIGIBILITY CRITERIA. Participation will be on a "first come. first served" basis. until all available funds are committed. Preference will be given to those buildings which house a retail or commercial use. Applications will not be accepted to refinance imDrovements alreadv completed nor for interior buildin~ improvements. The program provides funding of these costs on a reimbursement basis after the work has been completed. The preparation of architectural and engineering (A&E) plans or specifications for. a "facade improvement project" is an allowable expense under the program, The .' Citv can reimburse up to 50% of the A&E costs incurred on a project. provided the cos'tS have been first approved by staff and the project is completed. The inclusion of A&E costs counts as part of the entire grant award to the building per the present facade reimbursement formula. Priority will be given to projects In the downtown business district. Other projects within the commercial and industrial districts of the Agency may be considered. but majority of funding is targeted to downtown district. APPLICATION PROCEDURES: ,......-..,,!,~<....... ,.i!Ij~--I,~"""..>.,I'",'IlI!;>"f~"......... ....",;i.. '\_ The following application procedures shall apply to all individuals requestlng financial assistance: I. A standard one-page application describing the scope of work and requested assistance along with any bids. drawings or renderings 5h::111 be submitted to the Agency. 2. Initial approval of the request by the Executive Director of the Agency or his designee. The approval is tentative pending City review of the final budget and work program for the building effon. 3. Prepared drawings or renderings cle~rly depicting the nature and scope Of. work to be performed shall accompany a design review application. The .... contcnt of the renderings shall he consistcnt with those normally required by the City's Design Review Committee. 4. Applications in their complete form will be rcviewed by City staff and the Design Review Committee within fifteen (IS) after receipt. Approval of the application shall reserve the funding commitment for ninety (90) days. If substantial progress is not made toward carrying OUt the described work within the 90 day period (Le. if working plans have not been prepared and a building permit applied for), the funding commitment shall expire. 5. Applicants are responsible for contracting and assuring that the work is satisfactorily completed in accordance with the approved plans. All proposed improvements must meet apppcable building code requirements and City Design Review Guidelines. . 6. All work to be done In conjunction with funding commitment shall be perfonned wi thin 180 days of approval of the Design Review Application (unless written extension is granted). Receipts for the completed work are then Submitted to the Agency. The funds will be provided on a reimbursement basis when proof of payment in to the Contractor has been provided. Within seven (7) days of when receipts are submitted. the City will confirm whether or not the work was done per plan and shall. upon confinnation. submit a warrant request to the City Finance Department. . .: . ", . Facade Improvement Assistance Checklist Required Approval Scope 'Of Improvements CDA Building Design Add or Replace Staff (1) Official (2) Review (3) Remarks Awnings . . . Repainting . , ~,. . "N" -".',' ,.,.,,,,,,.""."'. .J."... H~'q...~,. ,', ,,' ..,". 1t .." .." c" . ,,- ,..~ .. ,.~ ..,.~'. Sidewalks or street trees . . Sign replacement under 50 square . . feet, face of building Planter boxes . (4 ) . Replace existing door or window, . inside existing frame Replace existing door or window with . . . new frames or configuration change Add or replace overhanging sign . . . Add or replace sign under 20 square . . . feet, changing configuration Add or replace sign over 20 square . . . feet on face of building Add or replace sign on building with . . . multiple occupants Major facade rehabilitation involving . . ". structural changes (1) Executive Director Bob Perrault or Planning Director Joe C. Heckel. (2) Planning Director Joe C. Heckel, with likely requirement for building permit (3) Design Review Commission approval within 15 days or less (4) Requires Encroachment Permit from Public Works f Telephone (707) 894-2521 FAX (707) 894-34!51 CITY OF CLOVERDALE P.O. Box 217.124 North Cloverdale Blvd., Cloverdale, California 95425 . - ;'-" ~ I -, 'W t.. December 2, 1994 :"r:,'\."{ G 1.995 TO: Downtown Merchants and Property Owners r:---"J ~.... ". ,1/. {-.,. OUD!.JN FROM: SUBJECT: Planning De"partment Facade Improvement Program-Revisions in 1994-95 The City of Clover dale is pleased to present a series of changes to the City's Facade Improvement Program. The intent of the revisions is to provide more opportunities and flexibility for property owners or businesses who wish to upgrade the exterior of their building or property. With this goal in mind. the City Council authorized the follOWing changes to the Facade Improvement Plan. · Funding Assistance Availa ble for Preparation of Architectural or Engineering Plans: Cost associated with preparation of architectural or engineering plans or specifications for a facade improvement project can now be included. · PrQJects Outside Downtown Business District Are Now Eligible: Projects within the Commercial and Industrial Districts of Clover dale, but are outside the Downtown. can now quali1)rfor assistance. e" ", · Availability of An Architect: The City can provide an architect, at no cost to the applicant, to suggest options for facade improvements to a building. Staff may also assist owners with: Reviewing construction bids, obtaining a contractor, funding, or applying the Facade Improvement Program toward the Building Permit fees. These services can be arranged through contacting the Planning Department. The purpose of these changes are to further heighten the interest of the business community for enhancing commercial and industrial buildings. The SUccess of the program has been significant. with over 20. downtown buildings having participated in upgrades such as: painting, landscaping, sign/awning repair or replacement as well as detailed rehabilitation and restoration of exterior facades. The City wishes to build on the SUccess of this program by incorporating additional incentives to make it more attractive. The funds of the Facade Improvement Program are committed on a "First C ome- First Served" basis: Available funds will be committed to participants on a "first come-first served" basis. Buildings which house a retail or commercial use shall be given preference. Copies of the "Guidelines of the Facade Improvement Program", as well as an application are attached for your review. e If you have any questions, please do not hesitate to contact the Planning Department at the City Hall Annex, 126 N. Cloverdale Blvd. (894-2521) . . . FACADE RENOVATION PROGRAM The city of Roseville Redevelopment Agency has established a Facade Grant Program aimed at assisting commercial property owners in improving the appearance of their building facades. The program is funded and staffed through the Redevelopment Agency. The purpose of the program is to stimulate the improvement and renovation of commercial buildings in the city's core commercial area. Through such improvements, the Agency hopes to encourage existing businesses to stay in the Redevelopment Area and attract new business, customers, jobs and investments into the area. SCOPE OF IMPROVEMENTS... Improvements eligible for grant consideration include exterior modifications to commercial and industrial building facades including: signs, awnings, painting, window/door replacement or modification, lighting, etc. Applications will not be accepted to refinance improvements already completed. AREA OF PROGRAM Current priority will"be given to the Old Town, Vernon street and Riverside Avenue areas of the Redevelopment Project Area (see attached maps).. Other areas may be added if funding is not exhausted in the targeted areas. APPLICATION PROCESS All property owners with commercial buildings within the Roseville Redevelopment Project Area are eligible to submit an application for a Facade Improvement Grant. Priority will be given to those properties located in the targeted areas described above, particularly the Old Town area. If more applications are received than funds are available, the Agency will prioritize the applications based on location within the project area, impact the building has upon the project area and the level of financial participation by the property owner. Applications will be reviewed within thirty days of receipt of a completed application by the: Agency. (Application form is attached. ) Upon application approval, the property owner will be asked to submit the following information related to the proposed improvements: 1. A rendering (drawing) of the improvements, including color samples, awning designs, signage, etc. 2. Preliminary Budget, including cost estimates and permits. EXHIBIT 2 , , The property owner can provide his own rendering of the improvements or can select from one of the architectural firms retained by the Agency. The architect will work with the owner in designing the facade renovation to fit within the owner's budget. Up to $800 of the cost of the design work will be covered by the Agency through the Facade Improvement Program. The proposed improvements will be reviewed by Agency and City staff to assure compatibility with surrounding buildings and design standards. All improvements must comply with design standards, building code and sign regulations of the City. All improvements shall be performed within ninety days of contract execution unless a written extension is granted by the Agency. ... .. . ., .",."""1" "",,,~,ul~'.~.'!o'II"''''''"'~i.'^~''''~~''''''''\"''"I'''''' r. '" '. ~".""'I" \,~,,,'.''''."' > .. .... ..~"'.....' Certain improveEents may require building permits and replacement of existing signage will require review and approval of the Project Review Commission. Additional applications can be obtained at the city of ~oseville Housing and Redevelopment Office, 405 Vernon Street, Suite 1, or by calling 774-5270. NOTE: GRANT AMOUNTS The Redevelopment Agency budgeted $75,000 for the Facade Grant Program during the 1994-1995 fiscal year. The maximum grant available is $5,000 per building, requiring a $2,500 match from the ..'.'. property owner. In the case of corner properties, a maximum grant of $10,000 is available, requiring a $5,000 match from the property owner. PAYMENTS The Agency will make payment directly to the property owner upon completion of the improvements and based upon submission of supplier or vendor invoices. JS1400 8/94 .' HOUSING & REDEVELOPMENT CITY OF ROSEVILLE 405 VERNON STREET. STE. I . ROSEVILLE. CA 95678 . (916) 774-5270 TRADITION . PRIDE . PROGRESS NOTE: A separate application fonn must be completed for each building. FACADE IMPROVEMENT PROGRAM APPLICATION FORM city of Roseville Redevelopment Agency 405 Vernon Street, Suite 1 Roseville, CA 95678 (916) 774-5270 CASE NUMBER (for office use only) DATE: 1. Applicant Name: 2. Mailinq Address: Number street city/State/Zip 3. Buildinq Address: Number street city/state/Zip 4. Telephone Applicant can be reached at during day 5. Best time to contact Applicant 6. Names of all Individuals on property title: . 7. Number of stores or offices in building: 8. Number of occupied and vacant stores or offices: 9. List all businesses in building: 10. Describe Proposed Facade Improvement(s): 11. Amount applicant is willing to pay toward improvements: $ Indicate how much you plan to spend from your own funds on your facade improvement. Remember that you can be provided a grant for two thirds of the total costs, up to $5,000 per building. . 12. Age of building: Over 50 years ____Under 50 years __ 13. Agency Design Services requested? Yes No ,...... ,.,. I .;>O;)...,o<.( ,".' ~C..o()l. ~ ~, ~ )1' )/0 )., .. )'1 'OliO AV(" W ~=)Of tUi.wiJ X ).. )C>O -:-" ;SI. . l' .."t4 N ," "' ... "'" -' 11'0 0 ,.. .... .. .,.. 1 - ' ,..., '" ,,. ,., .., ..: ... - .. ,,., '.. ,.., Scale: 1--400' OLD TOWN AREA . " .... ... I'. ." 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