AgdaPkt 2010-10-11 - Laserfiche WebLink

Browse Search

6.3B Page 1 REPORT To the Redevelopment Agency Board From the Executive Director October 11, 2010 SUBJECT Modification of the Storefront Improvement Program (SIP) and Design Assistance Services (DAS) Program RECOMMENDATION Adopt resolution approving modifications to the SIP and DAS and authorizing the Executive Director to administer the programs and execute all necessary implementation agreements. BACKGROUND The SIP was created in 1990 by the City Council to stimulate improvements and upgrade the appearance of commercial properties in the Downtown area. The program was originally set up with Community Development Block Grant funding, but later was funded by Redevelopment Agency tax increment funds. The rehabilitation of commercial structures is currently one of the goals listed in the Agency's Five-Year Implementation Plan for the period January 2010 to December 2014. The SIP was amended in 1993 and 1994 in an attempt to make it more attractive to businesses and to improve the administration of the program. The 1993 amendments "restructured" the program with the intention of making it more "user friendly" by modifying the formula for reimbursement and correlating the size of the grant more directly with the visual impact of the improvements. It also encouraged a higher quality of design by subsidizing architectural fees. The 1994 amendments doubled the amount of the grants for structural upgrades for unreinforced masonry buildings; and required the submittal of architectural drawings for the work proposed in order to ultimately assure that the improvements were in compliance with approvals. Unfortunately, the program has never lived up to expectations. In the past several years, only a handful of projects have been funded. There appears to be a variety of reasons for the limited participation in the existing program: 1. The amount of money available was too low. 2. The formula for determining the amount of the grant was too complicated. 3. Prevailing wage requirements were triggered under most circumstances making it difficult for small businesses and property owners to cover the resulting increased costs. Staff has spent considerable time reviewing storefront and façade improvement grant and/or loan programs in other cities (Attachment 2) and talking to downtown businesses and property owners. Meetings with downtown businesses and property owners were held on May 19, 2010 and September 8, 2010. In addition, businesses were asked to complete a survey identifying areas in which they could use assistance. As a result of the review of programs in other cities and the input received from Redwood City downtown property owners and businesses, a series of modifications to the existing SIP 82483.00000\4753953.4