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HomeMy WebLinkAbout1999-07-13 - AGENDA REPORTS - NEWHALL FACADE IMPROV PGM (2)CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approval Item to be presented by: Mike Havilary DATE: July 13, 1999 SUBJECT: EXPANSION OF DOWNTOWN NEWHALL FAQADE IMPROVEMENT PROGRAM AREA RESOLUTION NO. RDA 99-4 DEPARTMENT: Redevelopment Agency RECOMMENDED ACTION Adopt RDA No. 99-4 to approve expansion of Downtown Newhall Fagade Improvement Program area boundaries to include commercial properties fronting on the east side of San Fernando Road from Fourth Street south to Park Street. BACKGROUND Following the success of the first Downtown Newhall Fagade Improvement Program project it is evident that extending the program boundary areas approximately two blocks further south along San Fernando Road could encourage additional commercial properties to invest in a critical southern entrance to the Downtown Newhall area. The expansion of the fagade improvement program area would still remain within the larger Redevelopment Special Standards District. ALTERNATIVE ACTION Other direction as determined by the Agency. FISCAL IMPACT None by this action. ATTACHMENT 1. Resolution No. RDA 99-4 2. Special Standards District Map with proposed expansion area. Nwh1ydv/agenda/A-facad2 Adopted. " - 3 -f Agenda Ntern: SGRDA J. CITY OF SANTA CLARITA REDEVELOPMENT AGENCY DOWNTOWN NEWHALL FAQADE IMPROVEMENT PROGRAM (AMENDED) INTRODUCTION The Newhall Redevelopment Agency adopted the Newhall Redevelopment Plan and the Downtown Newhall Improvement Program in order to improve the physical appearance and economic conditions in the project area, including Downtown Newhall. The Fagade Improvement Program creates an avenue for property owners and businesses to work in partnership with the Santa Clarita Redevelopment Agency to improve the physical appearance of buildings within the Downtown Newhall commercial core. This Program utilizes redevelopment funds to promote fagade and signage improvements throughout Downtown Newhall. The primary goals of redevelopment are to eliminate blighted conditions in the physical appearance of Downtown, and to improve the economic vitality of the area. The Fagade Program provides a financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community. The rehabilitation of old, obsolescent, and deteriorating structures in the Downtown will result in the creation of an attractive "Main Street" shopping environment. This Fagade Improvement Program exists to encourage cooperation and participation of Downtown Newhall property owners and businesses with the Agency. The Agency and Downtown Newhall businesses share the goal of creating an economically vital "Main Street" shopping district. The Fagade Improvement Program provides a method to reach these shared goals and objectives. 1. PROGRAM GOALS a) Implement the Newhall Redevelopment Plan and the Downtown Newhall Improvement Program which encourage improvements to Downtown Newhall that upgrade the physical appearance of the area. b) Utilize redevelopment funds to promote private investment in fagade and signage improvements throughout the Downtown in order to eliminate blighting conditions and improve commercial vitality in the area. C) Create an attractive "Main Street" environment in the Downtown to attract new shoppers and businesses. d) Create an attractive, memorable image that expresses Downtown Newhall's history and character. 2. PROGRAM OBJECTIVES a) Encourage the cooperation and participation of Downtown Newhall property owners in the elimination of blighting conditions and the promotion of new or improved development in the area. b) Provide a financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community. 0 Develop and implement programs and incentives for the rehabilitation of old, obsolescent, and deteriorating structures within the area. 3. PROGRAM AREA The Program Area includes those properties fronting on San Fernando Road and Railroad Avenue from Park Street to Lyons Avenue. 4. PROGRAM DESCRIPTION Through this program, eligible business/property owners will be encouraged to improve the exterior appearance of their buildings consistent with the Downtown Newhall Design Guidelines, Downtown Newhall Special Standards, Newhall Redevelopment Plan and Downtown Newhall Improvement Program. This program is expected to result in the enhancement and improvement of the Downtown Newhall commercial district. The Program will be retroactive to include any eligible work completed in 1998. In an effort to assist with the successful implementation of this program, the Santa Clarita Redevelopment Agency will hire an architect to provide preliminary technical assistance to the City and each participant. The Newhall Redevelopment Committee (Design Sub -Committee) must approve all applications. All signage associated with the business or property shall be brought into conformance with the Downtown Newhall Special Standards District. Expenses eligible for rebate under this program include: a) Fagade restoration (front and rear), including signage b) Architectural enhancements c) New Windows d) Awnings e) Utility relocation f) g) h) i) D k) Exterior lighting Building and Planning Permits New entrances Architectural design expenses constructed) Visible Roofs (provided that the improvement is Exterior improvements related to handicapped accessibility requirements 5. FINANCIAL ASSISTANCE PROCEDURE The Santa Clarita Redevelopment Agency will provide the following assistance to eligible businesses and/or property owners for a project within the Program Area for approved eligible renovations of existing buildings. For purposes of this Program, a project is defined as a 50 -foot storefront. Assistance for each storefront shall be as follows: a) Fifty -percent of the total eligible project cost for project costs up to $25,000. b) An additional twenty-five percent of the total eligible project costs for project costs between $25,000 and $75,000. C) If the total eligible costs exceed $75,000 the maximum assistance shall be $25,000. d) Regardless of the above, the minimum amount of assistance to each property owner/business shall be $500. Examples of how the amount will be calculated: Example #1: A property owner or business adds new signs, awnings, and repaints his/her storefront. The total cost for the design, construction and installation is $10,000. Calculation of assistance funds: $10,000 total eligible costs x 50% _ $5,000; total funds to property or business owner = $5,000 Example #2: A property owner completely renovates the exterior of his/her building (which includes two storefronts totaling 100 linear feet in width) including the addition of numerous architectural features. The total design and renovation costs amount to $30,000 per storefront. Calculation of assistance funds : First $25,000 of eligible project costs x 50% _ $12,500; remaining eligible project costs are $5,000 x 25% _ $1,250; funds to property owner or business per storefront= $13,750; total funds to property owner or business = $27,500 Payment of Assistance Funds — Disbursement Procedures a) Projects Costing Up to $10,000 — payments will be issued on the following schedule: 1) 1/3 of the Agency contribution will be issued upon completion of 1/3 of the project. 2) An additional 1/3 of the Agency contribution will be issued upon completion of 2/3 of the project. 3) The remaining balance will be issued upon 100% completion of the project, which includes the release of all mechanic liens on the project. b) Projects Costing Over $10,000 — payments will be issued on the following schedule: 1) 20% of the Agency contribution upon approval of the application. 2) Balance of the Agency contribution at 100% completion of the project, which includes the release of all mechanic liens on the project. In either case, the applicant shall be required to submit payment request letters with supporting documents including cancelled checks, detailed invoices and photographs of the completed work to the City of Santa Clarita Redevelopment Agency. Agency staff will review and approve this information to ensure conformance with the approved application, plans, and other requirements of this Program prior to issuing funds to the applicant. Failure of the participant to complete the improvements in accordance with the approval shall result in the repayment to the Santa Clarita Redevelopment Agency of funds forwarded to the participant. All work must be complete and inspected by the City to ensure that all improvements are in place as indicated in the written request and application. A business/property owner must submit appropriate receipts, lien releases and proof of payment in order to receive this assistance. 6. HOW THE PROGRAM WORKS The Agency will hire an architect to prepare preliminary schematic design development sketches for buildings within the Program Area. The property owner and/or business may utilize these sketches in their formal design drawings. The Agency- hired architect will also be made available to the property owner/business for technical consultation during the preliminary stage of each project. The property owner/business will be responsible for the hiring of an architect (or other designer) to develop the formal building plans for the fagade improvements. The Design Sub -Committee prior to initiation of the project must approve these plans. The cost of architectural services is an eligible expense within the program. The property owner and/or business will be allowed to select his/her own contractor for completion of the fagade improvements and/or construction of other eligible exterior improvements. After completion of all work, the Agency requires that the applicant (property owner and/or merchant) maintain the fagade or improvement in an acceptable manner for a minimum period of five to ten years depending upon the amount of funds provided. Failure on the part of the participant to maintain the fagade in an acceptable manner shall result in a formal notice from the Agency to the applicant and property owner requiring correction of the situation by providing the maintenance at a level that meets the Agency standards. Failure of the applicant and property owner to take the steps necessary to bring the fagade into compliance within sixty (60) days will constitute a public nuisance that is subject to abatement by the Agency. This provision includes the right of the Agency, upon failure to comply with the notice, to repair or rehabilitate the nuisance. The Agency has the right to enter upon the property for the purpose of performing this work and thereafter demand, collect and/or assess the cost of the work against the property on its property tax bill. 7. ELIGIBILITY The Santa Clarita Redevelopment Agency will make funding for this program available on a limited basis. Therefore, eligible businesses/property owners are encouraged to apply immediately for consideration. Submittal of an application by an eligible business/property owner does not guarantee participation by the Agency. All businesses and property owners located within the Program Area will be eligible to participate in the program on a first-come, first-served basis. If a tenant business is requesting the assistance, the legal property owner of the building will be required to consent to participation by the business owner within the program. All tenant businesses must also have a current business license, if applicable, to be eligible for program assistance. All fagade improvements must be consistent with the goals and objectives of the Downtown Newhall Design Guidelines, Downtown Newhall Special Standards, Downtown Newhall Improvement Program and Newhall Redevelopment Plan, and must be approved by the City. 8. EXCLUSIONS The following businesses/properties, or projects, are not eligible for assistance through the subject program: a. New construction b. Interior improvements 9. PARTICIPANT REQUIREMENTS a) Participant shall be required to maintain the fagade improvements in accordance with the terms established in the approved application. b) Notarized letter of approval from the property owner when the applicant/participant is not the property owner. The property owner shall provide a signed letter which at a minimum states that " the property owner is aware of the project, consents to the applicant making improvements and will maintain the improvements if the applicant fails to ." c) Certificate of Additional Insured for general liability on the applicant's policy naming the City of Santa Clarita and Santa Clarita Redevelopment Agency as an additional insured with at least $500,000 in coverage. 10. APPLICATION/APPROVAL PROCESS a) Set up a preliminary project review meeting with staff and the Agency -hired architect. b) Submit conceptual drawings and schedule a preliminary review before the Design Sub -Committee. C) Complete and submit a formal fagade/storefront improvement application and provide: 1) a copy of a current business license (if applicable), 2) proof of property ownership (if you are not the property owner you must submit the consent letter from the owner), 3) photographs of the existing fagade/storefront and photographs of facades of adjacent buildings, 4) drawings or sketch of proposed exterior improvements, and 5) three complete bids for the work to be performed. d) Once the Design Sub -Committee and City have approved the construction plans, the business/property owner will receive an assistance "commitment" letter from the Agency. The business/property owner may then proceed with the improvements. All work must be completed within six months of issuance of the commitment letter. Assistance disbursement shall be in accordance with this Program. 11. CONCLUSION If you are interested in participating in this Program established for existing buildings with the Program Area, pick up an application form at the Planning and Building Services Department located at 23920 Valencia Boulevard, Santa Clarita, CA 91355. If you should have any questions regarding the Program or application process please feel free to contact Michael Haviland, Economic Development Manager, at the City of Santa Clarita (661) 255-4369. MH: 7/13/99 GEA: NwhlydvVcdprog