HomeMy WebLinkAbout2010-07-13 - AGENDA REPORTS - NEWHALL IMPROV TO ARRA FUNDS (2)Agenda Item: L 16
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Armine Chaparyan
DATE: July 13, 2010
SUBJECT: APPROVE PROGRAM CHANGE TO THE OLD TOWN
NEWHALL BUILDING IMPROVEMENT GRANT PROGRAM AS
PART OF AMERICAN RECOVERY AND REINVESTMENT ACT
- COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
DEPARTMENT: Community Development
RECOMMENDED ACTION
City Council approve program change to the Old Town Newhall Building Improvement Grant
Program to allow for grant awards up to $55,000 and direct staff to extend the project re -design
process to August 30, 2010, for projects that were submitted by the March 1 deadline.
BACKGROUND
The City of Santa Clarita's 21 -Point Business Plan for Progress was adopted on April 28, 2009.
This initiative expanded existing programs and created new programs to provide ways to enhance
the economy, build upon Santa Clarita's current successes, improve the infrastructure of the City,
and develop the local workforce.
The Old Town Newhall Building Improvement Grant Program (grant program) was established
as part of the 21 -Point Business Plan for Progress. This grant program is made possible from
stimulus funding authorized by the Recovery Act and issued by the U.S. Department of Housing
and Urban Development (HUD). Specifically, the funds are Community Development Block
Grant funds with a two-year time limit to spend approximately $275,000.
The eligible area for this grant program, Old Town Newhall, was determined based on HUD's
regulations that funds benefit an area concentrated with low/moderate income households and be
associated with development or infrastructure activities. The grant program was also established
to meet various HUD .guidelines and requirements such as flood insurance requirements and
payment of prevailing wages. Generally, the grant program originally was designed to provide
Up to $25,000 to improve the visual appearance of buildings, improve .a -building's structural
integrity, and eliminate blighting conditions in Old Town Newhall.
The grant program was launched on October 1, 2009 with applications due on March 1, 2010. At
that time, the grant program guidelines and application were made available to the general public
and posted on the City's Recovery Act website. Staff conducted various. outreach efforts
including mailings,..pressreleases; e-mail .blasts; personal visits, and hosted two grant workshops.
Staff also coordinated marketing. efforts with the. Santa Clarita Valley Chamber..of Commerce,
Old Town Newhall Association, and Valley Industrial Association.
Nineteen (19) grant applications (project) were received by the March 1 application deadline.
City staff from various departments evaluated.each project and requested missing information
and changes to design to meet City codes. All -applicants were allowed one additional - - -
opportunity to refine and resubmit projects to ensure consistency with the Downtown Newhall
Specific Plan architectural guidelines.
Staff presented an overview of the projects to the Newhall Redevelopment Committee (NRC) on
June 7, 2010. The NRC voted with no objections for the. City Council to "consider funding
fewer projects with. more substantial impact rather than more projects with less impact." The
City Council Downtown Newhall Specific Plan Ad -Hoc Subcommittee (Subcommittee) met.on
June 11 for further review and feedback on the projects. The Subcommittee requested staff
consult HUD on the potential program change to award increased individual grant amounts. The
Subcommittee was also interested in potentially funding projects that will contribute significant
change and provide long -'term improvements to Old Town Newhall.
Staff has confirmed that grant awards can be made at the higher amounts without significant
environmental impacts or re -noticing of the grant program. The Subcommittee respectfully
requests the City Council to consider a program change which may increase the grant eligibility
from $25,000 up to $55,000 per grant award. This -will allow for re -design of projects for more
significant impact to Old Town Newhall. The re -designs could allow for project upgrade of
materials, the addition of more architectural features, and a greater opportunity for Old Town
Newhall business and property owners.
If City Council approves of the proposed change, only already submitted applicants will be
allowed until August 30 to resubmit their project designs. Grant awards could be made by the
City Council in September with projects available. forbid in October.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact as a result of the proposed change to the grant program