HomeMy WebLinkAbout2010-09-28 - AGENDA REPORTS - OLD TOWN NEWHALL GRANTEES (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Armine Chaparyan
DATE: September 28, 2010
SUBJECT: APPROVE GRANTEES FOR THE OLD TOWN NEWHALL
BUILDING IMPROVEMENT GRANT PROGRAM AS PART OF
COMMUNITY DEVELOPMENT BLOCK GRANT - RECOVERY
ACT
DEPARTMENT: Community Development
RECOMMENDED ACTION
1. City Council approve grantees for the Old Town Newhall Building Improvement Grant
Program noted in Attachment A, subject to the grantee finalizing design plans acceptable to the
Director of Community Development.
2. Continue revenues in Revenue Account 203-4424.012 by $164,128 from Fiscal Year
2009-2010 to 2010-2011 and continue the appropriation of $109,542.68 to Expenditure Account
13329-5161.001 from Fiscal Year 2009-2010 to 2010-2011.
3. Authorize the City Manager or designee to execute all documents, subject to City Attorney
approval.
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 $265,000.
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.
The grant program was originally 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. On July 13, 2010, the City Council approved a program
change to increase the grant eligibility from $25,000 up to $55,000 per grant award. This
allowed for re -design of projects for more significant impact to Old Town Newhall. Ten (10)
eligible projects were re -designed and submitted by the August 30 deadline.
City staff from various departments evaluated each re -submission to ensure consistency with the
Downtown Newhall Specific Plan architectural guidelines. Staff presented an overview of the
re -submitted projects to the Newhall Redevelopment Committee (NRC) on September 13, 2010.
NRC recognized that the re -submittals will provide significant enhancements to Old Town
Newhall. The City Council Downtown Newhall Specific Plan Ad -Hoc Subcommittee
(Subcommittee) also met on September 21 for further review and feedback on the projects.
The Subcommittee recommends the City Council approve 'Attachment A' as the list of five (5)
grantees eligible for grants up to $55,000 each. The Subcommittee recommends the grantees
submit final design plans acceptable to the Director of Community Development. The grantees
were selected based on the strength of their design and the significant impact the project would
have on Old Town Newhall. A sixth grantee is also recommended should any funds be leftover
to assist with partial costs associated with their building improvements.
Following the selection of the grantees, City staff will bid the grantee's projects with contract
award for construction of the projects later this year. The exact grant amount is unknown until
construction bids have been received and selected. No grant award for construction will be
greater than $55,000. Any leftover funds will be applied to the sixth selected grantee.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
In Fiscal Year 2009-2010, the City was awarded a formula allocation of $303, 635 of Community
Development Block Grant Funds as part of the Recovery Act. Requested continuance of
unencumbered funds in the amount of $109,542.68 from Fiscal Year 2009-2010 to 2010-2011
Expenditure Account 13329-5161.001 and revenue in the amount of $164,128 to 203-4424.012
does not increase the original project budget. These actions also do not exceed the City's formula
allocation amount.
ATTACHMENTS
Attachment A - Building Improvement Grant Program
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