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HomeMy WebLinkAboutSeptember 16, 1997lgm. MUM ROLL CALL: Council Members Chang, Kovacic, Kuhn, Young and Harbicht Mayor Harbicht Excused 4-0 1. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY COUNCIL/REDEVELOPMENT AGENCY (NON-PUBLIC HEARING/ FIVE MINUTE TIME LIMIT PER PERSON) None 2. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(a) to confer with legal 6.33 p.m. to counsel regarding the case of Gail Penprase [Beaumier] v. City of 6:55 p.m. Arcadia et al. INVOCATION 7:00 p.m. Council Chamber Rev. Jolene Cadenbach, Arcadia Congregational Church PLEDGE OF ALLEGIANCE James Dale, Director of Administrative Services Mayor Harbicht ROLL CALL: Council Members Chang, Kovacic, Kuhn, Young and Harbicht Excused _A-_0__ 3. PRESENTATION of Proclamation to Lions Club for White Cane Days Mayor Pro tem Kovacic 4. SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS. 5. QUESTIONS FROM CITY COUNCIL/REDEVELOPMENT AGENCY REGARDING AGENDA ITEMS MOTION: Read all Ordinances and Resolutions by title only and waive reading in full. City Manager Pro tem Garner re Closed Session None Adopted 4L70__ 6. PUBLIC HEARING ACTION Pub. Hrg. Closed a. Consideration of an appeal of the Planning Commission's denial of Appeal__ Denied 3-1 MC 97-035, a request to permit a stucco finish in lieu of the required Chang No condition that the existing block wall be of decorative masonry block for property located at 1308 Standish Place. Pub.Hrg. Closed b. Report and recommendation to allocate $5,000.00 of Community Continued to Development Block Grant funds and to assist the Greater San Gabriel October 7th_ ­Mtg. 4-0 Valley Community Development Corporation in their efforts to create a small business capital loan fund. 7. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO VTASA�-T_O---4u.,,"ars-e-- ADDRESS THE CITY COUNCIL/REDEVELOPMENT AGENCY Gail Marshall (NON-PUBLIC HEARING/ FIVE MINUTE TIME LIMIT PER PERSON) City Council Reports / Announcements /Statements /Future Agenda Items See Minutes 9. MEETING OF THE ARCADIA REDEVELOPMENT AGENCY Chairman Harbicht ROLL CALL: Agency Members Chang, Kovacic, Kuhn, Young and Harbicht Excus_e_d__4-0._.___ r41011MITMi a. Minutes of the August 23, 1997 and August 26, 1997 adjourned App v -0 regular meetings. b. Report and recommendation to appropriate $5,000.00 in Conti - nu - ed - to Oct. 7 Redevelopment Agency funds and to assist the Greater San Gabriel 4-0 Valley Community Development Corporation in their efforts to establish a small business capital loan fund. C. Report and recommendation to approve Amendment No. One to the Approved 4-0 Commercial Facade Rehabilitation Program Guidelines. d. Report and recommendation to partially repay City loans, re- borrow Approved 4-0 same and extend the term of the Agency's total indebtedness to the City for Fiscal Year 1997-1998. ADJOURN Redevelopment Agency to September 30, 1997 at 6:00 p.m. a. Minutes of the August 23, 1997 and August 26, 1997 Adjourned Approved 4-0 Regular Meetings, and the September 2, 1997 Regular Meeting. Reso's. 6010 & 6011 b. Report and recommendation to approve Resolution No. 6010 - Adopted-4-0 A Resolution of the City Council of the City of Arcadia, California, amending the Independent Cities Risk Management Authority (ICRIVIA) Joint Exercise of Powers Agreement to authorize a member city to appoint a substitute alternate representative to the Governing Board-, and, Resolution No. 6011 - A Resolution of the City Council of the City of Arcadia, California, appointing specific representatives to the Independent Cities Risk Management Authority. C. Report and recommendation to approve the Final Map 52161 for a Adopted 4-0 6-unit residential condominium project at 727-733 W. Camino Real Avenue. d. Report and recommendation to approve a request from the California Adopted 4-0 Arboretum Foundation to install temporary banners on City-owned street light poles. e. Report and recommendation to accept payments on loan from the Adopted 4-0 Arcadia Redevelopment Agency, re-loan same amount to the Agency and extend terms of outstanding Redevelopment Agency debt to the City for Fiscal Year 1997-1998. a a. Report and recommendation to adopt Resolution No. 6012 - Adopted 4-0 A Resolution of the City Council of the City of Arcadia, California specifying meeting times and the order of business for City Council meetings. b. ADOPTION - Ordinance No. 2076, An Ordinance of the City Council Adopted 4-0 of the City of Arcadia, California, amending the Arcadia Municipal Code by amending Section 4250.1 adding Section 4250.1.2 pertaining to nighttime curfews. C INTRODUCTION - Ordinance No 2077, An Ordinance of the City Introduced 4-0 Council of the City of Arcadia, California, amending Sections 9275 et seq. (Conditional Uses) of the Arcadia Municipal Code to add a new designation of "Automobile Fueling Stations" and regulations conditionally permit convenience retail marts in conjunction with gas stations. 3 0�- d. INTRODUCTION - Ordinance No. 2078, An Ordinance of the City Introduced 4-0 Council of the City of Arcadia, California, amending Chapter 7 of Furt er discussion at 10-7-97 g Article I of the Arcadia Municipal Code by adding Sections 1701 et seq. establishing a voluntary campaign expenditure ceiling for elections to city offices. ADJOURN City Council to September 30, 1997 at 6-00 p.m. in memory of Julius "Pete" Appel. Adjourned 9:07 p.m. 4 STAFF REPORT DEVELOPMENT SERVICES DEPARTMENT September 16, 1997 TO: Mayor and City Council FROM: C. Stephen Bucknam Jr., City Engineer 0S'5 Prepared By: Tom A. Shahbazi, Associate Civil Engineer SUBJECT: RECOMMENDATION TO APPROVE REQUEST FROM THE CALIFORNIA ARBORETUM FOUNDATION TO INSTALL TEMPORARY BANNERS ON CITY -OWNED STREET LIGHT POLES ALONG PORTIONS OF HUNTINGTON DRIVE AND BALDWIN AVENUE AND AUTHORIZE STAFF TO PROCEED WITH ENCROACHMENT PERMIT APPROVAL The California Arboretum Foundation is requesting permission to install approximately twenty (20) double -sided temporary banners on City -owned street light poles along portions of Huntington Dr. and Baldwin Ave. from September 22, 1997 to October 27, 1997, for the purposes of publicizing the Los Angeles Garden Show which will be held at the Los Angeles County Arboretum on October 22 -26, 1997. It is recommended that the City Council approve this request and authorize staff to proceed with Encroachment Permit approval. In accordance with the requirements set forth in Ordinance No. 2004, staff is requesting City Council approval authorizing the California Arboretum Foundation to install approximately twenty (20) double -sided temporary banners on City -owned street light poles along Huntington Dr. (from Fifth Ave. to Old Ranch Rd.) and Baldwin Ave. (from Colorado St. to Huntington Dr.) from September 22, 1997 to October 27, 1997, for the purposes of publicizing the Los Angeles Garden Show which will be held at the Los Angeles County Arboretum on October 22 -26, 1997. LASER IMAGED (1,0 "V. /o.d Mayor and City Council September 16, 1997 Page Two Engineering staff and the City Attorney have reviewed the Encroachment Permit Application and related materials for accuracy. The applicant has been advised of their responsibility to comply with the conditions of approval required for the installation of temporary banners as outlined below: 1. Submit Encroachment Permit Application. 2. Pay for all the fees and inspection charges associated with said permit. 3. Provide insurance and hold harmless protection to the City. 4. Submit an installation and removal plan subject to the approval of the City Engineer. Applicant accepts responsibility for installation and removal of temporary banners. 5. Provide any other information deemed necessary by the City Engineer consistent with the need to review the request of the applicant. It is recommended that the City Council approve the California Arboretum Foundation's request to install temporary street banners on City -owned street light poles along portions of Huntington Dr. and Baldwin Ave. from September 22, 1997 to October 27, 1997, and authorize staff to proceed with Encroachment Permit approval. Approved By:_ CSB:TAS:mlo Attachment A - Attachment B - Attachment C - A to I4 WILLIAM R. KELLY City Manager Encroachment Permit Application Location Map Sample Banner Mvi PEPmIT NO. Nod CITY OF ARCADIA Development Services Department Engineering Division _•• •• • -- ; .� • •. •u - • n IMP 0_l • i ADDRESS: CITY: rorirf t`r� 0, ZIP: c-2 PHONE: l6P4, ENCROACHMENT PURPOSES: 1. NATURE/ DESCRIPTION: �7 r'e e't l��c; Y��'1 C�1-S �./i C� / %�c%`! 7 ,[,Q f�,•,,� 2. LOCATION: i� �/' U �Jl' ' Lie 3. INSTALL /CONST. DATE: REMOVAL DATE: V-"-, � k-\— cal 1 2y\ 19 9 (e C .4 Lc)-t, c . 5. CHECK MARK ONE OF THE FOLLOWING WHICH APPLIES: INSURANCE: !' 1. CERTIFICATE OF INSURANCE WITH $__/ COMBINED BODILY INJURY AND PROPERTY DAMAGE NAMING THE CITY OF ARCADIA AS AN ADDITIONAL INSURED. (COPY ATTACHED) * 2. HOLD F-PP_"?LES S AGREEMENT `(SIGNED COPY ATTIACHED ),.�-- DATE: 19 -2-7 SIGNED BY: (AP PL7Cr'IT) FOR CITY USE ONLy RECEIPT NO. DATE• 1. P ?R.i7ylAY WIDTH: 2. APPROVAL RECOM14ENDED BY: DATED: 19 DEVELCP:IENT SERVICES D7RECTOR NOTE: 1. Permittee is required to notify Engineering Inspector at (SlS)574 -5490 24 hours prior to start cf work. 2. Permittee will be billed monthly for inspection of public improvements (off -syte wor..) w_ .i mini -um of half h c ur (1/2) per inspection. *Subject to approval by City = _ttornev. Encinee__nc :nspector- ATTACHMENT A H H n x 3 tri z H A Note: The banners are to be installed on existing street fight poles Locations are approximate. / � io ;u W-LD W)- a-" m �,�j - C E W at the street medan island aft r CITY OF ARCADIA The Los Angeles Garden Show En*serng DivWm Street Banner Locations ~ Not To Scale 0 Cm .l THE LOS ANGELES GARDEN S1 low-, Benefiting The California Arboretum Foundation OCTOBER 23 -27, 1996 THE ARBORETUM OF LA COUNTY Tickets available at Ticketmaster n�=XSfI ATTACHMENT C ' --- ""°��° - ' STAFF REPORT -. - -...DEVELOPMENT SERVICES DEPARTMENT September 16,1997 - , ' - , TO Arcadia City Council and __ Arcadia Redevelopment Agency -FROM: Peter Kinnahan, Economic Development Administrator - _ . : • Donna Butler, Community Development AdministratorG �'i� SUBJECT: JOINT DISCUSSION REGARDING: _ _ (1) _ PUBLIC HEARING - REVISION, TO THE 1997-1998 : . STATEMENT OF OBJECTIVES AND PROJECT USE OF 23 YEAR CDBG FUNDS TO ALLOCATE $5,000 TO ASSIST T E GREATER SAN GABRIEL VALLEY COMMUNI DEVELOPMENT CORPORATION . (2) REPORT AND RECOMMENDATION TO APPROPRIATE - $5,000 IN REDEVELOPMENT FUNDS AND TO ASSIST THE GREATER SAN GABRIEL VALLEY COMMUNITY DEVELOPMENT CORPORATION ESTABLISH A SMALL BUSINESS CAPITAL LOAN FUND FOR ARCADIA, AND FOR AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO -. EXECUTE CONTRACT FOR SUCH SERVICES SUMMARY The Greater San Gabriel Valley Community Development Corp. (CDC), composed of • several area cities and banks, has established a small business loan fund. CDC h s requested up to $10,000 from Arcadia as "poor money for a capital loan program or local small business development. This one-time Agency contribution can be leverag d numerous times to permit loans of $5,000 to $5 .for.slightly higher. risk Arca is businesses. So,oav . <. Staff recommends the appropriation of $5,000 each from the Redevelopment Age cy and Community Development Block Grant (CDBG) for this purpose (total $10,000) nd authorization for the City Manager/Executive Director to: (1) execute a contract for s ch services approved as to form by the City/Agency Attorney; and (2) execute he Memorandums of Understanding to be submitted to the Los Angeles County Commu ity Development Commission. "P°� CDC Report—Agency/Cou cil September 16, 1 97 LIM R IMAG - • DESCRIPTION • The"City of Monterey. Park, as the leader of the effort along with the cities of Alhambra, San Gabriel, Montebello, Rosemead and Cathay Bank, Comerica Bank, United National • Bank, Cen Fed Bank and Community Bank have created the Greater San Gabriel Valley Community Development Corporation (CDC). Its mission is to provide "nearly bankable" loans to qualified borrowers and provide technical assistance to small businesses. Initial funding to create the loan pool and loan loss reserve fund would come from local cities and banks (see Exhibit One). • Loans would be processed and packaged by experienced contract staff of the CDC subject to CDC Loan Review Committee approval. CDC's underwriting criteria is more flexible than standard bank criteria in order to encourage lending to businesses who have not been in business long, have insufficient capital, or simply need a small business loan below normal bank thresholds. All banks in the CDC would share equally in any loan to an approved small business, thereby spreading the risk. Loans would be up to five (5) years at an interest rate commensurate with the risk. Loans would be serviced by a contract administering bank. Repayment would include a 4% charge to cover CDC's administrative and operating costs. CDC's loan fund pool is essentially open-ended since member banks can provide as many loans to small businesses in Arcadia, and other participating communities, as they want and can fund. CDC has received approval from the Federal Deposit Insurance Commission and Incorporation status from the State of California. The combined City/Agency payment of $10,000 would provide the following CDC services to the City consistent with the City's Economic Development Program: • Continuous marketing to all financial institutions within the city to ensure that their staffs are familiar with the loans offered by the CDC. • Distribution of all brochures and program information to the City's Chamber of Commerce and City offices. - • Presentations to businesses, trade groups, and service clubs. • Participation with the City's economic development staff in seminars and trade shows. • • Guarantee to'loan funds to businesses within the Redevelopment Project Area and the City in an amount equal to or greater than the City's commitment level within a two-year period. The CDC is still in the process of organization and hopes to be operational by December, 1997. The current President is Mr. Wing Wong of United National Bank. Chris Jeffers, City Manager of Monterey Park, is on their Board of Directors. The Board will be composed 75% of bank shareholders and 25% of Community business people (City, Chamber, Utilities, merchants). CDC Report—Agency/Council = September 16, 1997 Page 2 - The "Bank CDC" concept was developed in San Diego in 1990 and won the Califo is Association for Local. Economic.Development (CALED) Avant- Garde Grand Prize in 1993. It is now operating in Orange County and Riverside County as well as San Die.o. While the CDC's main thrust is to serve lower income areas, it can make to-ns anywhere within a member organization's jurisdiction. Agency Funds .... _. • Sufficient Redevelopment funds are available in unappropriated reserves to provide he • $5,000 in funding. CDBG Funds Community Development Block Grant Funds can be utilized for neighborh•od revitalization and community development activities. In February, 1997, the City Cou cil approved the programs set forth below. Staff is proposing that $5,000 be realloca ed from the from the Housing Rehabilitation Program and a new activity be approved as -et forth in the attached Project Description for the Greater San Gabriel Valley Commu ity Development Corporation. The following is a summary of the 1997-98 approved proj cts as well as proposed amendments: • • Fiscal Year 97-98 - :.Pro•osed Amendments Housing Rehabilitation $441,422 $436,422 Congregate Meals Program 15,000 15,000 Senior Citizens social Services 35,000 35,000 Administration 25,000 25,000 Community Development Corporation 0 5.000 TOTAL $516,422 $516,422 Changes to any CDBG program require a public hearing and approval of the ity Council. FISCAL IMPACT Appropriation of $5,000 in Redevelopment Agency funds and $5,000 from FY 199 98 CDBG funds. This is a one-time request and the City does not receive reimburse ent for these funds. The direct benefits to the City are not quantifiable, however we an l 6 anticipate increased lending to Arcadia businesses for operation and expansion hat {, would potentially increase employment opportunities and sales tax to the community. ,, CONCLUSION One of the goals of the 1996 General Plan is to "promote programs for the expan ion and retention of existing businesses within the City". As part of this goal and the C ty's ongoing efforts to enhance commercial opportunities in the community, this program will be available to assist both existing businesses as well as new businesses intereste in coming to Arcadia. CDC Report—Agency/Co ncil • September 16, 1 97 Pa e3 The City Council should open the public hearing and receive testimony from the public as to the use of Community Development Block Grant (CDBG) funds for this project. A • public hearing is not required for the allocation of Agency funds. ' RECOMMENDATION After receiving all testimony staff recommends the following action be taken: 1. , That the Arcadia Redevelopment Agency appropriate $5,000 for a small business loan program and authorize'the Executive Director to execute a contract with the Greater San Gabriel Valley Community Development Corporation' for a' small business loan program subject to approval by the City Attorney as to form. 2. That the City Council approve the allocation of $5,000 in CDBG funds for the small business loan program; and 3. Authorize the City Manager to execute the Memorandums of Understanding that will be submitted to the County. Approved By W William R. Kelly, City Manager/Executive Director Attachments: Material describing the SGVCDC Business Capital Loan Program . Community Development Commission Activity Budgets CDC Report—Agency/Council September 16, 1997 Page 4 Greater San Gabriel Community Developr-- nt Corporation (In Organization) • DIRECTORS Serving the small business community. Frank Chen Cathay Bank Chris Jeffers City of Monterey Park Elsa Manic February 27, 1997 RECEIVED Comeriea Bank CITY OF ARCADIA Wilson Ngai United National Bank • MAR 0 3 '1997 Mr. William R.Kelly Erma Ramienios • CenFed Bank City Manager Alma Williams City of Arcadia CITY MANAGER community Bank 240 W.Huntmgton Drive - . . • _. ,. . . _ . Wing Wong Arcadia, CA 91007 United National Bank Dear Mr. Kelly: OFFICERS • President Wing Wong In late January,the Greater San Gabriel Community Development Corporation(CDC)hel a a mixer Vice President for city council members of the San Gabriel Valley. Municipal and banking representative listened Parker Williams to presentations about the positive impacts the CDC will make in the communities througho t the San n; Gabriel Valley and the benefits of creating the proposed public/private partnership to aid e e small • business community. Treasurer Graham MitrbdII - The Greater San Gabriel Valley Community Development Corporation,a lending institutio a made up 2 ofloca-I banks will provide micro loans to small businesses that do not qualify for •ditional financing. Besides.infusing capital into the local economy,the CDC will also ensure that technical . assistance is provided to beneficiaries of the program. This organization's servic- will be invaluable—Providing qualified businesses necessary capital to grow; become prosperous and hire additional employees. Presenters, which included State Senator Hilda Solis, East-West Bank's Senior Vice 'resident William Chu, City Councilperson Judy Chu, SGVCCC President Jim Hombuckle, an. a CDC consultant,einphasized the importance for cities to participate in this program. They expl, a ed that _participating banks will front most of the start-up costs and assuming all of the loan risks. s e CDC's Interim Board of Directors is asking,municipalities to make one-time contributions to assist in . establishing capital fund. Establishing the capital fund is a necessary step before becoming operational;this fund will be used to pay for administrative and marketing costs during the • st three years until the reaches its break-even point,after which it will be self- .'a-1g. Once operational,the CDC's lending power can be unleashed. • We also invite your city to participate in this exciting venture. Your participation will re in direct contributions to your city and will help stimulate economic growth in the region. CDBG funds are 4— , eligible for the one-time contribution. . _ I r%/D 4 . 320 West Newmark Avenue, Monterey Park, California 91754 • 818-307-1385 • Fax 818-307-1467 • • I r February 27! 1997 Page 2 Attachments enclosed w ill further explain the CDC's program and the benefits it can offer your small business community. If you have additional questions or if you are interested in aprticipating I encourage you to contact Chris Jeffers, Monterey Park's City Manager, at(818) 307-1255. Since ely, I Wing ong l President I • Enclosures: As stated • • • • • • • • • L3187 V Mlifurnia Pat mate SACRAMENTO OcnCZ ' SENATE COMMR'1EEs STATE CAPITOL _ ROOM 4090 SENATOR NI DUSTRIAL RELATIONS SACRAMENTO.CA 95814 (9161445.1418 j HILDA L SOLIS SUBCOMMITTEE ON ASIA TRADE 4401 SANTA ANITA AVENUE AND COMMERCE SECOND FLOOR TWENTY-FOURTH SENATORIAL DISTRICT MEM�E11 EL MONTE CA 91731 FINANCE.INVESTM NT.AND 1818)448.1271 �: INTERNATIONAL -ADE HEALTH AND HUM SERVICES 4716 CESAR CHAVEZ AVENUE = - - ,.•-... ,.. . . •c,. i5'="• �.. • JUDICIARY BUILDING-A- - --�•.�..).I NATURAL RESOUR- AND WILDUFE EAST LOS ANGELES.CA 90022 - •VL ; •!'•Y� - PUBLIC EMPLOYM AND 12131980.9560 - }�- am•' RETIREMENT • i -:�C`�1•� SELECT COMM ON WORKFORCE PREPARATION SELECT COMM a ON BIUNGUAL - - '- EDUCATION - - SPECIAL COMM - ON CRITICAL - - THINKING AND--OBLEM SOLVING IN OUR SCHOOLS . February 14, 1997 Dear Friends: It is my understanding that the Greater San Gabriel Valley Community Developm-nt Corporation;(CDC) is seeking financial assistance from local city governments on a one as e grant basis for early capital expenditures. This letter constitutes my support for their eff•rts. Based upon several existing models in Southern California, the CDC will offer • .. •cing and management assistance to those existing companies in the San Gabriel Valley who . e currently unable to access credit in the traditional manner. The term loans range from$5 000.00 to $50,400.00:-with a pay period for up to 5 years..The CDC is seeking a one-time grant a om the public sector and its member cities for early capital expenditures. The long term respons bility for providing loan funds and the inherent risks associated with small business lending re a.ains with the CDC. • • I recently attended a meeting with proponents of the CDC amd was impressed by a eir long term commitment to the San Gabriel Valley. The benefit to the region is the additio•- capital that becomes available to existing entrepreneurs who may have sought financial assistance but were turned down by their local city government. While local governmen I often seeks to accommodate these businesses,the cost and effort to set up loan funds is often prohibitive,time consrimin ,and hampered with resuictions.With the CDC bearing all ••sts and .risks, it is a tremendous vehicle to leverage a modest amount of CDBG or similar fundin: into the vast resources of local financial institutions without any risk to local government. • In this regard,I ask that you consider-joining with other area cities in supporting •'s "win- win"program by listening to a presentation by one of the local proponents. If you have questions,please call Mel Ilomin of my district office at(818)448-1271. • - Sincerely, . . • • • - Hilda L. Solis Senator, 24th District - , GREATER SAN GABRIEL VALLEY COMMUNITY DEVELOPMENT CORPORATION (In Organization) PROGRAM HIGHLIGHTS MISSION: Fund "nearly bankable" loans to qualified borrowers and to provide technical assistance TARGET: Businesses in low-moderate income areas of the Greater San Gabriel Valley who are not quite "bankable" due to: 1) Length of time in business • 2) Lack of sufficient collateral 3) Small amount of loan request LOANS: • Parameters: 5,000 to $50,000, up to 5 years amortization Interest rates: Commensurate with risk BOARD OF DIRECTORS: 75% Bank shareholders 25% Community business people MANAGEMENT: Third party non-profit administrator LOAN PACKAGING: Third party non-profit administrator SERVICING: • Administrator/bank shareholder TECHNICAL - ASSISTANCE:a Existing providers in target area (ie. Small Business Development Centers) - INVESTMENT COST: Initial capital stock purchased by participating financial institutions and financial commitments from target area cities Annual loan pool contributed by shareholders, amount to be determined by Board of Directors annually PROJECTED OPEN DATE: 4th Quarter, 1997 • • GREATER SAN GAP',TEL VALLEY COMMUNITY DEVELOPME T CORPORATION (In Organization) NON-BINDING EXPRESSION OF INTEREST The undersigned expresses interest in the successful formation and operation of a Co unity Development Corporation dedicated to promoting economic growth throughout the Grea er San Gabriel Valley. Any municipal grant or other form of participation is subject to all the ne essary. approvals and appropriations. However, at this time, to ensure the timely formation of such organization, we pledge to seek approval for the following: • (please check one option) 1) We support your efforts by seeking approval for one-time grant of$5,000 In return, we understand that the Greater San Gabriel Valley Community - Development Corporation will provide the following: • Continuous marketing to all financial institutions • Distribution of all brochures and application forms to local Chamber of Commerce and City offices • Presentations to business groups and service clubs • Participation with Economic Development agencies in seminars and trad- shows ■ Publicize city as a sponsoring agency 2) - We support your efforts by seeking approval for a one-time grant of$10,000 or more.-In return, we understand that the Greater San Gabriel Valley Comm nity Development Corporation will provide the following: • Continuous marketing to all financial institutions • Distribution of all brochures and application forms to local Chamber of Commerce and City offices M Presentations to business groups and service clubs •_Participation with Economic Development agencies in seminars and tra•e - shows 3_. • Publicize city as a sponsoring agency . .■ Loan funds available within City to be equal or heater tha commitment level of any grant within a two year period Name: Title: City: Telephone&Fax#: THIS IS NOT A SOLICITATION OF FUNDS AT THIS TIME. THIS I. AN EXPRESSION OF INTENT TO SEEK FORMAL APPROVAL. • ‘i,,v•sr�r� THE C!T".- F .* 0, N DIEGO 0y CIVIC CENTER PLAZA 200 THIRD AVENUE' • SUITE 1620 - Q� SAN DIEGO, �,gbR FA 921 01-41 78 • TELF.PONE (619)236-6039 FAX: (619)2366512 ECONOMIC . October 19 ,. 1995 DEVELOPMFN 'T ,SERVICES TO: Local Government Economic Development Staffpersons RE: ` Bankers' Small Business Community Development Corporation of San Diego. County ("the BankCDC") • In this era of increased local responsibility for small business development without the commensurate additional staff and. systems resources necessary to ensure the success of in-house direct loan programs, the Bank CDC has provided the City of San Diego with an innovative :vehicle to leverage private financing from local banks • in support ;of public economic development objectives. I was a founding member of the public/private partnership that conceived and implemented the Bank CDC, winner . of CALED's 1993 Economic Development Avant-Garde Grand Prize. I am proud to state that ;the Bank CDC has originated 45 small loans totalling about $1;4MM_. since . its inception, mostly to minority- and women- owned and/or low income area-located small businesses:- The Bank CDC is also continually refining its financing program and integrating it with essential business development technical assistance. You are in 'the fortunate position, of capitalizing upon San Diego's hard-won expertise. . Especially with increasing flexibility. in the uses of HUD CDBG monies for microbusiness assistance; I urge you to • strongly consider whether a local multi-bankCDC could provide- increased capital access to the . small entrepreneurs in your. community and whether it should be •- partially funded by local government. _ • Please do not hesitiate to contact me at (619) 236-6235 with any questions or for. more information on •the City's very positive experience ;with the Bank CDC. • • - . Sincerely, . ,A.,..4.12■<yLLArcl__, • Mark A. Sullivan A� Business Finance Manager 'x. , • "_1E .1 .,rJ. DIVERSITY . . Baa'1GS US AU.TO"—Tl-F = COMMUNITY DEVELOPMENT COMMISSION • COUNTY OF LOS ANGEL- .:OMMUNITY DEVELOPMENT BLOCK <J`_T PROGRAM PROJECT DESCRIPTION AND . ACTIVITY BUDGET - Original X Amendment No. 1. OPERATING AGENCY: 2. PROJECT TITLE: CDC DIVISION - San Gabriel Valley Community • X CITY COUNTY DEPARTMENT . .. Development Corporation COMMUNITY-BASED ORGANIZATION 3. PROJECT NUMBER:.D96620-97 HOUSING AUTHORITY JPA AGENCY NAME:City of Arcadia 3A. CDC PROGRAM MAN GER: . (For CDC use only) DIVISION(coc ONLY): Luci Keeler ADDRESS: 240 West Huntington Drive • Arcadia. CA 91007 4. PROJECT DURATION: CONTACT PERSON: John Halminski • From: 7/1/97 to 6/3 /98 TITLE: Assistant Planner - 5. HUD ACTIVITY CODE: 18A TELEPHONE NUMBER: (818)574-5423 SA. HUD TITLE: ED Direct Financial Assistance to For-Profit I (if more than one HUD activity,complete page 4.) 6. PROJECT SUMMARY: Assist the Greater San Gabriel Valley Community Development Corporation in continuous marketing to all financial institutions within the city to ensure that their staffs are familiar with th loans offered by the CDC. Distribution of all brochures and program information to the city's cham er of commerce and city offices, presentations to businesses,trade groups, and service cl bs, and participation with the city's economic development staff seminars and trade shows. rogram will benefit low income business owners and job creation CDBG funds will be used for staff fees to the San Gabriel Valley C_ ommunity Develop ent Corporation. • • (Additional pages attached ) 7. PROJECT LOCATION: - A. ADDRESS:City Wide B. CITY/UNINCORPORATED AREA: Arcadia C. ASSESSORS PARCEL NO.: SUPERVISORIAL DISTRICT: 5th - • D. PROJECT SERVICE AREA: Residents of the following census tracts,enumeration districts,or block groups will benefit from this project (Attach a legible project map which identifies the service area.) _ City Wide .- • 8. ELIGIBILITY: Project is eligible under 24 CFR Part 570. (Project may be eligible under several criteria. Indicate all • appropriate letters and sub-numbers.) 201 (a-m,o-q) 204(a-c) 202(a-f) 205(a-b) 203(a-b) (b) 206(a-g) ,AjoVexa.0Jt.96 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT,A OPERA' AGENCY: City of Arcadia PRC• ;T NUMBER: D96620-97 • 9. COMPLIANCE WITH NATIONAL OBJECTIVE: • ..... All must meet one of three objectives. This project meets the following objective s: • Prot bl P 1 9 bl ( ) A. X Activities benefiting low-and moderate-income C. Activities designed to meet community • persons under 24 CFR 570.208(a) development needs having a particular urgency, under 24CFR 507.2080 1. Area-wide benefit project affecting ' D. Additional criteria under 24CFR 570.208(d) percent low-and moderate income - persons as indicated in the 1990 census. . 1. For acquisition of real property,a preliminary -determination of whether the activity addresses a 2. Limited-Clientele activities: 570.208 national'objective may be based on the planned use (a)(2)(1)A,_:B_C_D_(ii)_A_B_C_ - of the property after acquisition. • (iii)— (iv)- . 2. Required relocation assistance provided by the • 3. Housing activities. recipient shall be considered to address the same - national objective as addressed by the displacing 4. _X Job Creation/Retention activities that activity. Voluntary relocation assistance may be are designed to create or retain jobs. . qualified on the basis of the national objective • • - addressed by the displacing activity or on the basis B. Activities which aid in the prevention or -- that the recipients are low-and moderate-income • elimination of slums or blight',under -- -- - persons. 24CFR 570.208(b) 3.` A public improvement a ". divity designed to create or 1 Activity is located in a slum/blighted retain jobs must meet the requirements of 570208(a) area,which has been:(check one) . - • (1)as well as 570.208(a)(4). • designated as a Redevelopment Project Area. 4. CDBG funds expended for planning and administrative approved by the CDC as a slum/blighted area costs under 570.205 and 570206,respectively,will be considered to address the national objectives. • ' *List-conditions of slurn/blight to be addressed by the project. (Complete only for projects qualifying under JUSTIFICATION(CDC USE ONLY): 570208(b)(1)prevention or elimination of slums or • blight) 2. Activity is located outside a slum/blighted area,but qualifies as spot slum/blight • 3. Activity will address slum/blight in an Urban renewal area 10. IMPLEMENTATION SCHEDULE AND PROPOSED ACCOMPLISHMENTS: Identify specific goals of tasks and estimated time of completion (specify whether duplicated or unduplicated clients will be assisted) Continuous marketing efforts of the Greater San Gabriel Valley Community Development Corporation July 1,1997-June 30, 1998 Goal is to market all financial institution within the City and the San Gabriel Valley. 11. PROJECT ADMINISTRATION: Identify the entity implementing the project Include the name(s)and title(s) of the project manager(s), and the address of the organization implementing the project City of Arcadia,240 W Huntington Drive,Arcadia, CA 91007 • • • • • • • • COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT A OPERATING ;NCY: City of Arcadia PROJ( )NUMBER: D96620-97 • 12. PROFESSIONAL SERVICES/SUBRECIPIENTS: (describe duties to be performed) • • - 13. SPECIAL CONDITIONS: (CDC use only) The operating agency must comply with procurement standards outlined in 24 CFR, art 85, Section -85.36, of the"Common Rule",for the purchase of all goods and contracted services using CDBG funds. - • 14. BUDGET SUMMARY:'- The Operating Agency understands that no expenditures may be incurred until the contract has been fully executed. Cost Category CDBG Share Tbtal Cost* (1) Personnel Services $ 5,000 $ 5,000 (2) Non-Personnel Services $ $ (3) Capital Outlays $ $ (4) Indirect Costs $ $ (5) TOTAL(1-4) $ 5,000 $5,000 List the source and amount of other funds used in this project Amount Source: - - - - $ • • • NOTE:. . All expenditures must conform with appropriate CDBG regulations and with the LA. County Auditor-Controller Contract Accounting and Administration Handbook. All expenditures must • be fully documented by receipts,time records, invoices, canceled checks, in I entory records, • or other appropriate documentation which completely discloses the amount nd nature of the expenditures. - • COMMUNITY DEVELOPN i COMMISSION • COUNTY OF LOS, GELES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PROJECT DESCRIPTION AND ACTIVITY BUDGET • Original Amendment No. 1 1. OPERATING AGENCY: 2. PROJECT TITLE: CDC DIVISION Housing Rehabilitation#9 X CITY COUNTY DEPARTMENT 3. PROJECT NUMBER: D96618-97 COMMUNITY-BASED ORGANIZATION 3A:' 'CDC PROGRAM MANAGER: HOUSING AUTHORITY- JPA (For CDC use only) AGENCY NAME:City of Arcadia Luci Keeler • • DIVISION(CDC ONLY): 4. PROJECT DURATION: ADDRESS: 240 West Huntington Drive Arcadia,CA 91007 From: 7/1/97 to 6/30/98 • CONTACT PERSON: John Halminski 5. HUD ACTIVITY CODE: 14A TITLE: Assistant Planner 5A. HUD TITLE: Rehabilitation: Single- .. . TELEPHONE NUMBER: (818) 574-5423 Unit Residential • • (If more than one HUD activity,complete page 4.) 6. PROJECT SUMMARY: • This is a continuation of an existing program offered to low-and moderate-income households to improve or rehabilitate their single-family owner-occupied dwellings. The City is offering grants up to a maximum of$10,000 per household. - The purpose of this program is to maintain and preserve those structures which are generally in good condition and to assist in the elimination of conditions which are detrimental to health, safety, and public welfare. Eligible improvements include but are not limited to exterior and interior - painting, stucco repair, roofing, siding, interior code violations including plastering, new flooring, and driveway improvements. It is anticipated that approximately40 homeowners will be assisted. CDBG funds will be used for consultant fees to administer the program and to pay the contractors performing the work. (Additional pages attached • 7, PROJECT LOCATION: A ADDRESS:240 West Huntington Drive B. CITY/UNINCORPORATED AREA Arcadia " C. ASSESSORS PARCEL NO.: SUPERVISORIAL DISTRICT: 5th . D. PROJECT SERVICE AREA Residents of the following census tracts,enumeration districts,or block groups will benefit from this project (Attach a legible project map which identifies the service area.) City Wide 8. ELIGIBILITY: Project is eligible under 24 CFR Part 570. (Project may be eligible under several criteria_ Indicate all .. . appropriate letters and sub-numbers.) 201 (a-m,o-q) 204(a-c) 202(a-f) (a)(1)(b)(2)(4)(5)(6)(9) 205(a-b) 203(a-b) 206(a-g) _ AjnVexaAn.96 • _.�............ . -- --_. ...�... .... . ............. CJlr71D11 H .. OPERATING Ar--')CY: City of Arcadia PROJECT BER: D96618-97 9. COMPLIANCE WITH NATIONAL OBJECTIVE: All projects must meet one of three objectives. This project meets the following objective(s): A. X Activities benefiting low-and moderate-income C. Activities designed to meet ccmmunity•, persons under 24 CFR 570.208(a) • • -. •• .1 _ development needs having a particular urgency, under 24CFR 507.2080 1. Area-wide benefit project affecting D. Additional criteria under 24CFR 570.208(d) percent low and moderate income • persons as indicated in the 1990 census. 1., For acquisition of real property,a preliminary determination of whether the ctivity addresses a • • • 2, _ Limited-Clientele activities: 570.208 national objective may be bas on the planned use (a)(2)(I)A_:B_C_D_(ii)_A B_C_ of the property after acquisitio . . _..- .-.:. O— (iv)_ . -. 2• Required relocation assistan provided by the 3. X Housing activities, recipient shall be considered t address the same national objective as add - -•by the displacing 4. Job Creation/Retention activities that activity. Voluntary relocation- istance may be - are designed to create or retain jobs. qualified on the basis of the na.oval objective addressed by the displacing a.; ity or on the basis • B. Activities which aid in the prevention or that the recipients are low-an moderate-income _ • elimination of slums or blight,under persons. 24CFR 570.208(b) 3. A public improvement activity•esigned to create or . . '. 1 Activity is located in arslum/bliighted • . . _ retain jobs must meet the requ rements of 570.208(a) - - area,which has been:(check one) _ (1)as well as 570.208(a)(4). • designated as a Redevelopment Project Area. 4. CDBG funds.expended for pia ning and administrative - _ . _approved by the CDC as a slum/blighted area. costs under 570.205 and 570 06,respectively,will be considered to address the na•anal objectives. 'List conditions of slum/blight to be addressed by the . project. (Complete only for projects qualifying under JUSTIFICATION(CDC USE ONLY): 570208(b)(1)prevention or elimination of slums or blight) 2. Activity is located outside a slum/blighted area but • ' qualifies as spot slum/blight 1 Activity will address slum/blight in an Urban renewal area 10. IMPLEMENTATION SCHEDULE AND PROPOSED ACCOMPLISHMENTS: Identify specific goals or tasks and estimated time of completion (specify whether duplicated or unduplicated clients will be assisted). July 1997-Program advertising and interviewing qualified homeowners on waiting list. Work to commence after qualification is established. There will be a total of approximately 40 participants. • . Services will be provided from July 1, 1997 through June 30, 1998. 11. PROJECT ADMINISTRATION: Identify the entity implementing the project Include the name(s)and title(s)of the project manager(s), and the address of the organization implementing the project • John Halminski,Assistant Planner ... .. • Development Services Department, Community Development Division City of Art,adia - -. .. 240 West Huntington Drive Arcadia, CA 91007 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT A OPERATING AGENCY: City of Arcadia PROJECT NUMBER: D96618-97 12. PROFESSIONAL SERVICES/SUBRECIPIENTS: (describe duties to be performed) - A consultant is hired to do both the administration and construction management of the project. • 13. SPECIAL CONDITIONS: (CDC use only) - A professional services agreement must be executed for all contracts/consultants in compliance with Federal requirements. Per 36 CFR 800: Protection of Historic Properties/Floodplain Review(Section 106 Historic Review), . . the City shall submit to the CDC, a Basic Property Identification Form for all properties to be • rehabilitated. Review of potentially historic structures and clearance of those structures through this process, must be granted PRIOR to incurring any costs or starting the rehabilitation of the property. Properties requiring an in-depth review and analysis will be evaluated by the State Historic - Preservation Officer(SHPO)for historical and/or architectural significance. Floodplain review and public noticing also must be completed where applicable. • 14. BUDGET SUMMARY: The Operating Agency understands that no expenditures may be incurred - until the contract has been fully executed. • Cost Category CDBG Share Total Cost* - .. (1) Personnel Services $ $ • . • (2) Non-Personnel Services $ 44,000 $ 44,000 (3) Capital Outlays $392,422 $ 392,422 (4) Indirect Costs $ $ (5) TOTAL(1-4) $436,422 $436,422 • *List the source and amount of other funds used in this project . • Amount Source: • $ 441.422 CDBG • • • $ $ NOTE: All expenditures must conform with appropriate CDBG regulations and with the LA. County Auditor-Controller Contract Accounting and Administration Handbook. All expenditures must be fully documented by receipts,time records, invoices, canceled checks, inventory records,• • or other appropriate documentation which completely discloses the amount and nature of the •-• • . expenditures. • OM elk fVir.01= " STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT September 16, 1997 TO: City Council, City of Arcadia FROM: James S. Dale, Administrative Services Director SUBJECT: Report and Recommendation to Accept Payments on Loan from the Arcadia Redevelopment Agency, Re-loan Same Amount to the Agency and Extend Terms of Outstanding Redevelopment Agency Debt to the City for Fiscal Year 1997- 1998 SUMMARY The Arcadia Redevelopment Agency Tax Increment Fund exists for the re-payment of interest and principal on long term debt. The source of funds for these payments is tax increment revenue and each year, the agency repays the City any loans outstanding between the City and the Agency to the extent that funds are available in the tax increment fund at June 30. The annual repayment of existing debt between the Agency and the City is recorded in order to utilize tax increment funds for their intended use and to formally recognize and document the loans between the City and the Agency annually. DISCUSSION The tax increment fund at June 30, 1997, will have an estimated cash balance of $1,542,980. It is recommended that the Agency Board take formal action to remit these monies to the City in partial payment of existing loans and for the City to re-loan these funds to the Arcadia Redevelopment Agency Project Fund for the Agency to use to further pay expenses and acquire property according to the directives of the Agency Board. In addition, the Agency and the City should roll-over or extend the repayment of the balance of all remaining loans to June 30, 1998. Following is a summary of the loans outstanding at June 30, 1997, and the estimated cash balance available for loan repayment: Outstanding Loans from City to Agency $6,643,600 at 6-30-97 Less: Estimated Cash Balance in Tax 1,542.980 Increment Fund 6-30-97 Outstanding Balance at 6-30-97 $5,100,620 LASER IMAGED FISCAL IMPACT The interest rate on loans to the Agency are based on rates published and received by the City on funds invested in the Local Agency Investment Fund (LAIF). There is no fiscal impact on the City since these loans are invested at competitive rates with the agency and yield a fair rate of return to the City. RECOMMENDATION It is recommended that the City accept payment of$1,542,980 of loans outstanding with the Arcadia Redevelopment Agency on June 30, 1997, and that the City re-loan the $1,542,980 to the Agency Project Fund. In addition, the City extend the time frame for the re-payment on the remaining debt of$5,100,620 to be due and payable on June 30, 1998. APPROVED: William R. Kelly City Manager JSD:WRKmIp -Cs a F191:11 pyi 4 STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT September 16, 1997 TO: Governing Board, Arcadia Redevelopment Agency FROM: James S. Dale, Administrative Services Director/Agency Treasurer SUBJECT: Report and Recommendation to Partially Repay City Loans, Re-borrow Same and Extend the Term of the Agency's Total Indebtedness to the City for Fiscal Year 1997-1998 SUMMARY The Arcadia Redevelopment Agency Tax Increment Fund exists for the re-payment of interest and principal on long term debt. The source of funds for these payments is tax increment revenue and each year, the agency repays the City any loans outstanding between the City and the Agency to the extent that funds are available in the tax increment fund at June 30. The annual repayment of existing debt between the Agency and the City is recorded in order to utilize tax increment funds for their intended use and to formally recognize and document the loans between the City and the Agency annually. DISCUSSION The tax increment fund at June 30, 1997, will have an estimated cash balance of $1,542,980. It is recommended that the Agency Board take formal action to remit these monies to the City in partial payment of existing loans and for the City to re-loan these funds to the Arcadia Redevelopment Agency Project Fund for the Agency to use to further pay expenses and acquire property according to the directives of the Agency Board. In addition, the Agency and the City should roll-over or extend the repayment of the balance of all remaining loans to June 30, 1998. Following is a summary of the loans outstanding at June 30, 1997, and the estimated cash balance available for loan repayment: Outstanding Loans from City to Agency $6,643,660 at 6-30-97 Less: Estimated Cash Balance in Tax 1.542.980 Increment Fund 6-30-97 Outstanding Balance at 6-30-97 $5,100,620 APiev U,E LASER IMAGED 79/09 d FISCAL IMPACT The Agency needs these funds to pay expenses and to acquire properties in accordance with the directives of the Agency Board. As the Agency sells land that is currently owned and as tax increment revenues exceed annual expenditures, the Agency will reimburse the City accordingly. RECOMMENDATION It is recommended that the Agency pay$1,542,980 of loans outstanding at June 30, 1997, to the City of Arcadia and that the Agency re-borrow $1,542,980 and deposit such amount in the Agency Project Fund. In addition, the Agency accept an extension for the re- payment of the remaining outstanding debt of$5,100,620. All loans to the City to be due and payable on June 30, 1998. APPROVED: William R. Kelly Executive Director JSD:WRKmlp G8-47 - /A e Fr pi pi Memorandum arc'ad/a redevelopment agency DATE: September 16, 1997 TO: Arcadia Redevelopment Agency FROM: r eter Kinnahan, Economic Development Administrator SUBJECT: REPORT AND RECOMMENDATION TO APPROVE AMENDMENT NO. ONE TO THE COMMERCIAL FACADE • REHABILITATION PROGRAM GUIDELINES SUMMARY During the implementation phase of the Agency's Commercial Facade Rehabilitation Program (CFRP) (adopted March, 1996), it has become apparent that certain sections of the guidelines need to be clarified or amended; i.e., Architectural Design Services, Appeals and miscellaneous administrative sections. The proposed changes are summarized below and shown on the attached blackline of the CFRP Guidelines. Staff recommends approval of Amendment No. One to the CFRP Guidelines. DESCRIPTION The proposed CFRP Guidelines revisions are: A) ARCHITECTURAL DESIGN SERVICES Under the current Guidelines, the Program Architect(s) are to be chosen by the Agency Executive Director following a selection process that ensures the Architect is familiar with the CFRP Guidelines, Central Business District (CBD) zoning regulations and Architectural Design Guidelines, State Law, City Building codes and procedures, and whose fees were reasonable and fair. The program was designed to favor Arcadia architects. Applicants are however not required to use them. Since most downtown merchants would not be familiar with the construction process, the Program Architect was to assist the applicant merchant through the entire process, i.e., filing an application, preliminary design, plan check, design review, building permit, bidding, contract, change orders, progress payments, lien releases, final payment and closeout. Because of the'architects'..extensive involvement in the rehab process, the CFRP program would reimburse the applicant up to $3000 for Architectural Services. LASER !M AGED 698 ra v /eig 9,,� , Staff Report Page Two September 16, 1997 - Unfortunately, due to the contractual relationship between the Agency and Program Architect, the Architect was not able to obtain required liability insurance without excessive cost (approximately $5000 per applicant per job) and a large deductible • which would be passed onto each applicant. As a result, staff has had to discontinue this component of the CFRP and has so advised applicants. The participants however can still be reimbursed for typical general architectural services under another component of the CFRP Program -the Facade Property Improvement Loan Rebate. Under this component the amount of the reimbursement could be less than under Architectural Design Services. In place of the current 'Program Architect" component staff proposes a $500 rebate for limited architectural design services, i.e., concept elevations and designs, including preliminary costing. It would not include the previous extensive "hands on" services of the architect throughout the entire rehab process: The applicant will be able to use any licensed architect he chooses though staff will provide a list of architects familiar with the City's codes and the CFRP Guidelines. Since no direct tie or contract will be made involving the Agency, liability insurance is not an issue. Under the revised program, staff pre-approval to begin architectural work would be required; payment for the work must be commensurate with the quality and quantity of the architectural work performed. For legal reasons this program component can be available only within the Redevelopment Project Area, i.e., north of Alta Street. B) APPEAL There is currently no Appeal process for a decision of the Development Services Department. This revision sets up a two-step appeal, first to the Executive Director, and then to the Redevelopment Agency Board itself ($50.00 fee). C) MISCELLANEOUS ADMINISTRATIVE REVISIONS These changes update the introductory text from the March, 1996 adoption date, clarify the processing procedures, add "boundary survey" to the eligible reimbursements, limit architectural fees to 10% of CFRP related construction, clarify that three (3) reasonably identical bid proposals are required, clarifies rehab versus new construction, clarifies the start date for the beginning of the rebate period as the day the Agency issues the rebate check, and provide more flexibility to owners/landlords in releasing their facilities after loss of a tenant(s) during the default period. Staff Report Page Three September 16, 1997 Collectively, these changes are referred to as Amendment No. One. They have been reviewed and approved as to form by both Agency Special Counsel and the Agency Attorney. All of the proposed changes are shown on the blackline (Attachment One). FISCAL IMPACT None. RECOMMENDATION That the Agency approve Amendment No. One to the Commercial Facade Rehabilitation Program Guidelines. Approved By: """� 4 App William R. Kelly, Executive Director Attachment 3 ARCADIA REDEVELOPMENT AGENCY DOWNTOWN 2000 COMMERCIAL FACADE REHABILITATION PROGRAM GUIDELINES September 16, 1997 Development Services Department Economic Development Division (818) 574-5414 Original 3/96 Amendment No. One 9/97 Table of Contents Topics Page Introduction/Purpose 3 II Eligibility 4 III Property Improvement Standards 4, 5 IV Exclusions 5 V Application Process 5 VI Commercial Revitalization Program Elements 6-8 1. Architectural Design Services 2. Sign Replacement Loan Rebate 3. Facade Property Improvement Loan Rebate 4. General Property Improvement Loan Rebate VII Contractor Selection Requirements 8, 9 VIII Inspection Requirements 9, 10 IX Project Approval Requirements 9, 10 X Time Requirements 10, 11 XI Administrative Requirements 11, 12 XII Forgivable Loan Rebate Requirements 12, 13 XIII Loan Rebate Procedure 13 XIV Default 13 XV Program Amendments 13 XVI Appeal 14 Appendix Exhibits 1. Central Business District (3/96) 2. Facade Improvement Loan Rebate Chart 3. Application/Property Owner Authorization and Acknowledgment-9/96 4. a)Arcadia Redevelopment Agency Promissory Note-9/97 b)Arcadia Redevelopment Agency Promissory Note Secured by Deed of Trust-9/97 5. Step-by-Step Procedure-9/97 • COMMERCIAL FACADE REHABILITATION PROGRAM I. INTRODUCTION In late 1992, the City Council and Redevelopment Agency (the City Council acting as the Redevelopment Agency) began an extensive study of downtown Arcadia. After numerous community workshops, public hearings, and public meetings, the City and Agency, in August, 1993 adopted a Comprehensive Revitalization Strategy and Program. This included both a major Streetscape construction project on Huntington Drive (old Route "66"), and on First Avenue, as well as a companion Business Incentive Program. The Business Incentive Program in turn was composed of an analysis of downtown zoning and design criteria, a commercial facade rehabilitation program, a marketing program, a business attraction and expansion program, a cooperative parking and signage program, an accessway program, technical assistance to merchants, and a special events program. Because of market and community concerns the Streetscape component was significantly revised and approved by the City CounciVRedevelopment Agency in October, 1994. This project was completed in May, 1996. The downtown zoning and design criteria program was approved with expanded boundaries by the Planning Commission on February 22, 1996, and by the City Council on March 19, 1996. The Commercial Facade Rehabilitation Program was adopted March 19, 1996 by the Redevelopment Agency and implemented in September, 1996. The Commercial Facade Rehabilitation Program is the subject of the following guidelines: The Downtown 2000 Commercial Facade Rehabilitation Program Our goal is the revitalization of downtown into an exciting. and attractive family centered retail and service district. By combining the major reconstruction of downtown's two main shopping streets, Huntington Drive and First Avenue with the related business incentive programs, we hope that the downtown will be seen by the citizens of Arcadia and of the nearby communities as an exciting and interesting place to shop, dine, obtain services, sightsee, and live. PURPOSE The City and the Redevelopment Agency desire to build on their commitment to the Downtown through a new facade improvement program called the "Commercial Facade Rehabilitation Program". By providing financial incentives to downtown owners/merchants, the Agency hope to improve the physical appearance of downtown shop facades. Funds to pay for-the program will be provided by the Redevelopment.Agency, not the City. -3- • f The Agency's objectives under the program are: 1) To improve the physical appearance of private commercial properties in the Central Business District (CBD); 2) To increase business, commercial use, and revenues in the downtown. 3) To improve the image of the Central Business District. 4) To provide a pleasant and exciting family-oriented shopping district. The program has four components: architectural design services, sign replacement loan rebates, facade improvement loan rebates, and general property improvement loan rebates. PROGRAM GUIDELINES IL ELIGIBILITY REQUIREMENTS A. Applicant Eligibility 1. The applicant must be either the owner of commercial property or the owner of a business located within the designated.Central Business District (CBD), (Exhibit 1). Business tenants must obtain written permission from the property owner in order to participate in this program, and must keep the property owner informed of the proposed building improvements and work schedule. B. Property Eligibility 1. The property must be zoned and used for commercial purposes as set forth in the CBD zoning regulations. 'Preferences may be given for commercial retail users who sell products which generate sales tax to the City. 2. The property must be located within the CBD Area (Exhibit 1). 3. The property may not contain pending code violation actions which are hazardous to health or safety. Pending code violation actions are those situations where any governmental agency inspector has taken an initial enforcement action. Such violations must be corrected as part of an overall rehabilitation effort in order to receive financial assistance under this program. III. PROPERTY IMPROVEMENT STANDARDS _ _ All property improvements made under this program must comply at a minimum with the following: -4- 1. The City of Arcadia Building, Electrical, Mechanical, Fire and Plumbing Codes. 2. The City of Arcadia Zoning Ordinance and General Plan. 3. The Central Redevelopment Project Area Plan and adopted policies. 4. The City of Arcadia Design Guidelines. IV. EXCLUSIONS The following will not be included within this program. 1. Improvements not visible from a public right of way or a neighboring property. 2. Interior improvements within a building. 3. Structural improvements not related to exterior improvements, including seismic upgrades. 4. Improvements necessitated by vandalism (property owners insurance should cover this). 5. Industrial buildings, churches, banks and savings/thrifts and loans, gas stations, and buildings used exclusively for residential or industrial occupancy. 6. The use of materials and fixtures which are unreasonably expensive (i.e., gold plating), as determined by the Development Services Director. 7. Properties which have received any facade rehab program funds within the previous three years, except signage which shall be one year from date of rebate payment. V. APPLICATION PROCESS Applications for assistance under this program will be processed in the order they are received. (Preference may be given for commercial retail users, who sell products which generate sales tax to the City). Applicants shall use the Agency's forms in applying for the program. Incomplete, erroneous, misleading, or fraudulent information shall be grounds for terminating the application. -5- VI. COMMERCIAL FACADE REHABILITATION PROGRAM ELEMENTS Participants may apply for one or more of the four elements of the Agency's overall Commercial Revitalization Program. In all cases a binding agreement must be executed by the appropriate parties. 1. Architectural Design Concept Services a. Architectural services up to $500 for consultation and preparation of concept elevations and designs (including project cost estimation) consistent with the City's adopted CBD Guidelines provided by a licensed California architect are eligible for reimbursement. b. Applicants for reimbursement under this program element must first obtain written authorization to utilize an architect before proceeding to incur costs. c. To obtain reimbursement the applicant shall show the architect's concept plan(s), elevation(s) or design(s) to Agency/City staff in order to ensure that the quality and quantity of the architect's work is consistent with the CFRP and CBD Guidelines and commensurate with the cost. d. The Agency does not reimburse architect costs for production of construction drawings, plan check processing, bid analysis, construction monitoring, or other plan preparation or construction related costs under this program element (it can be reimbursable under the Facade Improvement Loan Rebate Program formula). e. The Architectural Design Concept Services element is available only within the Redevelopment Project Area (i.e., north of Alta Street). 2. Sign Replacement Loan Rebate a. Rebates will be made in the amount of 75% of the costs set forth in paragraph 2b below, up to a maximum rebate of$3,000. b. Sign Rebates will be made for the following expenditures. 1) Removal of non-conforming (to code), obsolete, inappropriate, unattractive and unused signs, and sign supports. .- - 2) The cost and installation of new signs and related support and electrical work, to replace non-conforming (to code), obsolete, inappropriate, unattractive and unused signs. -6- • 3) Signs constructed or installed to meet the intent and criteria of the CBD Design Guidelines. 3. Facade Improvement Loan Rebate a. All proposed facade improvement projects must include exterior painting if needed, as determined by the Development Services Director, and the removal of non-conforming signs (see Sign Rebate, Section VI2, above) in order to qualify for a Facade Improvement Rebate. b. Rebates may be made for front, rear and side facade improvements to existing walls. New construction is not included. c. Rebates may be made for the removal of non-conforming (to code) obsolete or inappropriate facade appurtenances, and also for the following facade improvements. 1) Structural work only if directly related to facade improvements. 2) New facade treatments. 3) Awnings, canopies, shutters, etc. 4) New entrances and storefronts. 5) New windows. 6) Exterior lighting affixed to the building. 7) Landscaping and irrigation (e.g., planter boxes). d. Other items eligible for Loan Rebates under this section include: 1) City architectural design review, plan check, boundary survey, and permit fees. 2) Architect services to the property or business tenant; e.g., preparation of bids, preparation and filing of plans, construction monitoring, progress payments, lien releases, change orders, not to exceed 10% of total CFRP related construction costs, nor be duplicative of payments made under the Architectural Design Services component. ____. 3) Such other costs, fees and exterior improvements approved by the Development Services Director which are consistent with the objectives of the program. -7- . e. Loan Rebates will be made in the amount of 80% for improvements costing up to $10,000. Rebates for improvement costs above $10,000 will be based on a sliding scale (Exhibit 2) with a maximum rebate of $25,000. Examples are shown below: Cost of Improvement % Rebated Amount Rebated $50,000 50.0% $25,000 $40,000 57.75% $23,100 $20,000 72.5% $14,500 $15,000 76.25% $11,438 $11,000 79.25% - $ 8,718 $10,000 80.0% $ 8,000 4. General Property Improvement Loan Rebate a. All proposed general property improvements must include exterior painting of the building if needed, as determined by the Development Services Director (see Facade Improvement Rebate, Section VI3, above), and the removal of non-conforming signs (see Sign Rebate, Section VI2, above) in order to qualify for a General Property Improvement Loan Rebate. b. Rebates in the amount of 50%, up to a maximum Agency reimbursement of $10,000 will be made for improvements to or replacement of the following. 1) Trash receptacle enclosures. 2) Decorative masonry or brick walls. 3) Parking lot reconstruction, resurfacing and restriping, landscaping, irrigation and lighting. 4) City Design Review, plan check and permit fees. 5) Such other general property improvements and costs as approved by the Development Services Director. VII. CONTRACTOR SELECTION REQUIREMENTS The following is required under this program: A. Participants are responsible for selecting and contracting with their own licensed contractor. (Upon request, the Development Services Department -8- • will provide the participant with a list of local licensed general and other specialized contractors.) B. Participants must obtain at least three written bids from licensed contractors in response to written reasonably identical bid proposals, and supply a copy of the bids to the Development Services Department (an independent architect retained by the applicant can assist the applicant with the scope of services, plans, and specifications). Participants must select the lowest qualified bidder who meets the job requirements and is responsive to the written bid proposal, and inform the Development Services Department of their decision. (Because unforeseen contingencies commonly occur during rehabilitation, the Agency will generally add 10% to the bid to provide for such. These funds should be used only if absolutely required to complete the approved scope of work). C. Prior to Agency reimbursement, participants must submit proof to the Development Services Department that the selected contractor (and his subcontractors) has the following: 1. A State of California Contractor's License. 2. A City of Arcadia Business License. 3. Worker's Compensation and Liability insurance to the satisfaction of the City Attorney of the City of Arcadia. D. Participants must enter into a written agreement with the contractor and provide an executed copy to the Development Services Department. The agreement must be consistent with the Agency's adopted guidelines for the Commercial Facade Rehabilitation Program. E. Participants must receive written Development Services Department approval prior to implementing any change orders, in order to receive financial assistance under this program. Clear and specific change orders must be submitted to the Development Services Department in writing for approval prior to the initiation of the work. F. Participants must abide by the requirements of all applicable Federal, State, and local laws in having the work performed. VIII. INSPECTION REQUIREMENTS A. An initial exterior property inspection will be conducted by City staff to determine the eligibility of the desired improvements. B. Progress inspections by City staff to assure that the improvements are being constructed in accordance with the approved plans and the City's Codes. -9- C. A final inspection by City staff to determine that the improvements have been completed in accordance with the plans, and with the City's Codes. D. Any pending Code violation actions which are hazardous to health or safety must be corrected as part of a comprehensive rehabilitation effort in order to receive financial assistance under this program. IX. PROJECT APPROVAL REQUIREMENTS A All project concepts must be reviewed and preliminarily approved by the Development Services Department B. All projects must obtain property owner approval, City of Arcadia and Arcadia Redevelopment Agency Design Review approvals, a building permit (if necessary), a Certificate of Occupancy (if appropriate, by the City), and a Certificate of Completion issued by the Arcadia Redevelopment Agency, and contractor(conditional) lien releases. • X. TIME REQUIREMENTS A Time Limit Requirements 1. Bids must be obtained and a contractor selected within 60 days from the date that construction drawings have been approved by the Development Services Department 2. The-project must be completed within 90 days following the execution of an agreement between the property owner or business owner/tenant and the contractor. For la rger or more complicated jobs (i.e., above $10,000 or involving major structural or phased renovation), the Development Services Department will permit a longer construction period. Generally, the Agency desires that all projects be completed within six months from the application submittal date. • B. Time Extension Requests 1. A request for a time extension must be made in writing to the Development Services Director. 2. The request must state in detail the reasons for the request. 3. The request must be received by the Development Services Director prior to the deadline for selection of a contractor and/or the deadline for the completion of the project, above. -10- NOTE: If these time limits are exceeded, participation in this program may be canceled, the participant would be required to reimburse the Agency for architectural or other services provided. It would be necessary to reapply. XI. ADMINISTRATIVE REQUIREMENTS A. All applicants must complete and sign the Commercial Revitalization Program Application form (Exhibit 3). B. If the applicant is a tenant, the applicant must submit the "Property Owner Authorization and Acknowledgment" form signed by the property owner, together with the application (Exhibit 3). C. In certain cases, the approval of a mortgagor(s) or lender(s) may be required before work can proceed. The applicant/participant is responsible for obtaining such approval(s) and the approval of the property owner if a recorded Deed of Trust is required by the lender. D. Under all program components, participants are required to enter into a contractual agreement with the Arcadia Redevelopment Agency (Exhibit 4). E. Participants are requested to provide a print of the architectural and construction drawings of the existing building facade (if available) together with the application. These drawings will assist Agency and City staff in reviewing designs for the improvements and reduce the time needed to complete the project. F. Participants are required to display a program sign (provided by the Development Services Department) on the front of the building or in a front window, from the date the applicant and Development Services Department sign the "Loan Rebate Agreement", until 30 days after completion of all improvements. The participant agrees to safeguard the sign and return it to the Development Services Department. G. In certain circumstances it may be necessary to obtain a lot book report, preliminary title report, or a boundary/lot or topographic survey. The participant shall pay these costs; they are eligible for rebate under the respective program component H. The Executive Director shall approve all applications and reserves the right to submit any application to the Agency Board for approval. 1. The applicant if a business owner acknowledges that his/her property taxes, insurance, maintenance and other costs may increase and the Agency is not responsible for financial payment of these costs. -1 1- J. In the event of any inconsistency between these guidelines and the agreement(s) between the participant and the Agency, the language of the agreement shall govern. XII. FORGIVABLE LOAN REBATE REQUIREMENTS All of the program components (except architectural design services) will be administered as a "forgivable loan rebate". The applicant will be loaned the Agency's share of the program funds pursuant to a loan reimbursement agreement. This document shall be recorded by the Agency against the property at the completion of and prior to disbursement of funds. When the work is completed and all City Community Development Division and other government agency approvals are received, the Agency will within 30 days issue a check to rebate the funds per the respective adopted formula. The applicant shall be required to stay in business for at least one year at which time the total loan shall be forgiven by the Agency. For loan rebates above a total of $10,001, the period shall be two years. For loan rebates above a total of $17,501, the period shall be three years. For loans above $25,001, the period shall be four years. If upon sale or transfer of the applicant's ownership of the business or business property, the loan has not been forgiven, the applicant shall repay to the Agency a prorated share of the rebated amount based upon a 365 day year times the number of years from date of rebate: The beginning of the rebate period shall be the day the Agency issues the rebate payment to the applicant. Example Agency-paid loan rebate amount Architectural: 300 Signage: $ 2,500 Facade Rehab: $ 9,000 General Property Improvement: $ 0 Total: $11,800 Period of loan: 2 years (above $10,001) Assumed sale date: 15 months (450 days) after rebate payment by Agency Method of Calculation: (a) 365 x 2 years = 730 days (b) less, applicant in business = 450 days (c) percent is 38.4% (280 days/730 days) 280 days - - (d) $11,800 x 38.4% = $4,531.20 Amount owed to Agency: $4,531.20, to be paid within 30 days of sale or transfer -12- . An event of default will not be deemed to have occurred if a cessation of operation is "temporary", defined as a period of less than 14 days once every three years, and is for the purposes of refurbishment or repair of the Businesses, or if one or more of the tenants in the owner's building leaves in the ordinary course of business, and is replaced with a tenant permitted by the Arcadia Municipal Code within a ninety (90) day period, or if the owner demonstrates in writing to the sole satisfaction of the Agency that he/she has acted reasonably and in good faith to market and release the owner's tenant space(s) but is unable due to reasons outside the owner's control to release the tenant space(s). XIII. LOAN REBATE PROCEDURE Rebates will be paid by check to the participant,jointly to the participant and contractor or to the participant and lender after the project is completed (i.e. a certificate of completion has been obtained from the Development Services Department) and after a contractor's conditional lien release(s) has been received by the Development Services Department. The Agency will not advance any funds to the participant or the contractor. For business owners in the project area, the Agency will require the business owner to execute a Promissory Note. Outside the project area (south of Alta Street), both the business owner and the property owner shall execute a Promissory Note secured by a Deed of Trust, with a minimum term of six months, which shall be recorded on the property. XIV. DEFAULT In the event of default by the participant, the participant shall be responsible for reimbursing the Arcadia Redevelopment Agency for all costs incurred by the Agency on behalf of the participant for services provided by the Agency. The participant shall also be responsible to reimburse the Agency for all legal fees incurred in enforcing the Agency's rights under this program. All moneys owed to the Agency by the participant shall be repaid in full no later than 30 calendar days after submitting a written demand therefor. The Agency shall provide written notice to the applicant specifying the reasons for termination and allowing the applicant reasonable time to correct any deficiencies. XV. PROGRAM AMENDMENTS This is a preliminary or"pilot program", which depending on merchant interest and success and Agency evaluation, may be continued. The Agency reserves the right to revise the Program from time to time as necessary to reduce funding for, or to cancel this program at any time, for any reason. -13- • XVI. APPEAL The applicant may appeal any decision made by the Development Services Department Director or designee affecting the eligibility of his/her application to the Agency Executive Director within fourteen (14) calendar days of notice of the Development Services Director's decision at no cost to the applicant. All appeals shall be in writing. The applicant may appeal any decision made by the Executive Director affecting his/her application to the Redevelopment Agency Board within fourteen (14) calendar days of notice of the Executive Director's decision. The applicant shall pay a $50 dollar fee for this • appeal. All appeals shall be in writing. -14- Exhibits 1. Central Business District (3/96) 2. Facade Improvement Loan Rebate Chart 3. Application/Property Owner Authorization and Acknowledgment-9/96 4. a)Arcadia Redevelopment Agency Promissory Note- 9/97 b)Arcadia Redevelopment Agency Promissory Note Secured by Deed of Trust-9/97 5. Step-by-Step Procedure -9/97 Note: Changes to the exhibits of the Commercial Facade Rehabilitation Program are very minor and carry out the intent of the amended Guidelines. Copies of the exhibits are available in the Economic Development Department at City Hall (626) 574-5408. •