NOFA - Downtown EOA (September 2024) Page 3
Background
The City of Bakersfield’s Economic Opportunity Area (EOA) Plan supports business growth, development, entrepreneurship, and innovation. The EOA Plan is a locally initiated program that uses tax increment financing and local sales tax revenue to promote economic growth and development investment within specific geographic areas of Bakersfield. The business property must be within the borders of the Downtown EOA area to be eligible for funding assistance in this program (see Attachment A – Downtown EOA Map). The grant award must be more than twenty-five thousand dollars ($25,000).
Eligible Activities Funded by Grant
Site Improvement/Rehabilitation
The grant can fund Facade Improvements (exterior building improvements); Site Enhancements (non - structural improvements); and Tenant Improvements (publicly visible interior improvements). • Exterior Façade Improvements
The project must include exterior improvements that are visible to the public and improve the property. All exterior improvements, made possible by the receipt of grant funds, shall remain with the property on which the improvements were originally constructed. The grantee may request permission from the ECD Director to remove or relocate the exterior improvements.
Eligible façade improvements include:
• Exterior Painting: only
as part of a greater
rehabilitation
Project
• Windows: new
windows, repair of
frames, sills, glazing,
and replacement of
glass
• Walls: Repair and
rebuilding of exterior
walls
• Doors: Installation of
new entry doors that
meet ADA accessibility
requirements
installation, repair and
replacement of exit
doors and hardware
• Design/engineering
(only 10% of grant ask)
• Repair, replacement or
addition of exterior
shutters and awnings
• New exterior stairs,
porches, railings and exit
facilities
• Lighting: installation,
repair and replacement
of lighting mounted on a
building that illuminates
the façade or signage
• Mandatory Title 24
upgrades
• Re-roofing and repair
(not to exceed 50% of
total project cost)
• Signs: repair and
replacement of signs
attached to
buildings
• Siding: Repair or
replacement of
exterior siding,
including new façade
elements, restoration
of original
architectural
features, etc.
• Site/Property Enhancements
The project includes site enhancements to improve aspects to a property not related to the structure that add curb appeal and value to the property. All site improvements, made possible by the receipt of grant funds, shall remain with the property on which the improvements were originally constructed. The grantee may request permission from the ECD Director to remove or relocate the site improvements. Eligible site improvements include:
• Construction of
outdoor dining or
gathering spaces
• Lighting that is not
attached to a
structure
• Parking lot
reconstruction
• Permanent landscaping
Shade structures
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• Installation of new
signs not attached to a
structure.
• Walkways: sidewalks,
pavers, plazas, or other
improvements for
pedestrian use
• Painting on installed
site improvements
• Security
enhancements:
cameras, alarms and
more secure windows
and doors
• Fencing as allowed
per City Code
• Development fees
(transportation,
building permit, water
and sewer
connection, and
planning)
• Demolition of
blighted or chronic
nuisance property
• Outdoor furniture
• Public infrastructure
improvements
(sidewalks,
landscaping, lighting,
etc.)
• Design/engineering
(only 10% of grant ask)
• Publicly Visible Rehabilitation/Tenant Improvements
This project must include “high-visibility interior improvements” defined as improvements that are associated with areas visible from the exterior of the building and/or are areas normally occupied by customers (i.e. dining room, lobbies, sales floors, etc.). Tenant improvements are not required to remain with the property. Eligible tenant improvements include:
• Repairs and remodeling to bring an
existing building/business into code
compliance for:
o electrical systems
o plumbing systems
o accessibility/ADA improvements
o fire and other life safety issues
• Painting associated with interior
remodeling
• Purchase of equipment, furniture, and
fixtures
• Elevators: repair or installation
• Interior remodeling of walls and other
physical interior structures
Ineligible Projects
It is not the purpose of the program to finance ongoing improvements which could be considered part of a building’s routine maintenance and upkeep; each eligible improvement shall be funded only once by the program. Other ineligible expenses include:
• Improvements that were completed prior to execution of a grant agreement • Administrative, accounting, and legal costs
• Extermination of insects, rodents, vermin, and other pests • Title reports and escrow fees (not related to property acquisition) • Refinancing existing debt
• Working capital for businesses
• Environmental assessments
• Operational costs
• Nonvisible mechanical equipment (including HVAC, etc.) and related screening • Temporary, portable, or non-permanent improvements
• Routine maintenance and repair
• Purchase of tools
• Past EOA awardees with executed grant agreements within the past 5 years
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Program Requirements
• Improvements shall conform to all City of Bakersfield Codes, Ordinances, Permits, Site Plan Review, and applicable Design Guidelines. It is recommended to consult with the City’s Building, Planning and Public Works Departments before completing the application. Staff can assist with coordination.
• It is the grant recipient’s sole responsibility for choosing and hiring the contractor, and the acceptance of the materials used, the work performed, and quality of workmanship of the property improvements. All Contractor s funded with grant funds must have a n appropriate and valid California Contractor’s license and a current City of Bakersfield Business Tax Certificate. • Contractors must comply with the California Labor Code, including but not limited to requirements regarding hours of labor, nondiscrimination, payroll records, apprentices, worker’s compensation, and prevailing wages, when required.
• To ensure efficient use of program funds, when the proposed activity is construction related, applications must be submitted with at least three construction bids/estimates. • Activities under this grant may be subject to California prevailing wages. Generally, any public works project involving construction, alteration, demolition, installation maintenance, or repair work done under contract and paid for in whole or in part wit h public funds (i.e. local tax revenue), is subject to prevailing wage. However, public works projects for new construction, alteration, installation, demolition or repair projects, prevailing wages are not required to be paid for projects of $25,000 or less, or $15,000 or less when the project is for maintenance work. See EOA Program
FAQs for more information.
• Applicants must have no active investigations or pending violations of City codes or criminal investigations.
• New construction projects and buildings occupied by the following types of businesses are ineligible for funding: gun stores, pawn shops, check cashing businesses, liquor stores, Adult Entertainment Businesses (as defined by Section Chapter 5.06 of the City Municipal Code), cigarette stores, video game and gambling establishments.
• Business owners who are tenants of a building (minimum three -year lease) must provide written consent from the building owner for all proposed improvements. In addition, the grant application must be signed by the property owner.
• To be eligible for a grant, the recipient must be:
o Existing legal businesses located or will be located within the Downtown EOA. o Business can be a for-profit or non-profit tax-exempt entities. o Owners or tenants of commercial, industrial, mixed use or high density residential (30 or more dwelling units/acre) property. (only market-rate housing) Evaluation Criteria
The Downtown EOA Program is a competitive process. Each project application will be evaluated on merit and impact to the community. Applications that meet more of the following program objectives will be given the highest scores:
Evaluation Criteria Highest Score
Possible
Quality of proposed projects, impact to the community and consistency with the goals and objectives of the EOA Plan. 25
Supports the goals and implements components of the Making Downtown Vision Plan and/or the Downtown Streetscape Plan. 20
The site is a vacant or underutilized structure or property, that has been vacant for over three years; either helps restore the tax base with a new or revitalized use or addresses a blighting influence of deteriorating property conditions. 15
NOFA - Downtown EOA (September 2024) Page 6
Provides a public benefit feature as described in CMC 17.26.090 15 Supports the growth and development of a local small business with less than 50 employees. 10
The project creates new high-density housing units (30 or more dwelling units/acre). 10
Corridor enhancement: business location fronts 18th or 19th Street between L Street and Mill Creek Linear Park. 5
Total 100
Economic and Community Development Staff will evaluate each application and make funding recommendations to the City Council who will make final award decisions. Staff will recommend projects based on the criteria listed above and available funding.
Applications will be reviewed by staff for compliance with all city codes, plans, policies, and program guidelines. This review does not imply all activities or specific costs proposed will qualify for grant funding.
Only eligible activities listed in “Eligible Activities Funded by Grant” above should be included in the grant application. Grants will be awarded only in amounts appropriate to the scope of the identified project and the proposed eligible project activities. Projects of $100,000 or more are subject to public hearing before the City Council, per CA Government Code 53083.
Grant Agreement
If recommended by the review committee for a project greater than $40,000, a grant agreement will be sent to review and for signature for City Council consideration. Once there is a signed agreement , staff will schedule an item for City Council’s consideration with the date and time. Grant activities cannot be started before there is an approved grant agreement. City staff will send a notification after the City Council meeting with the status of the grant agreement and whether it was approved.
If recommended by the review committee for a project less than $40,000, a grant agreement will be sent to review and for signature for the ECD Director’s consideration. Once there is a signed agreement, staff will provide a fully executed grant agreement. Grant activities cannot be started before there is an approved grant agreement. City staff will send a notification with the status of the grant agreement and whether it was approved.
The grant agreement is the formal document which outlines the legal requirements of the grant including the total amount of grant funds awarded; a detailed project description outlining the scope of work to be completed; project budget and schedule; and the terms and conditions associated with the grant funding.
The agreement may be canceled, or a breach may be found to exist if the applicant does not comply with the provisions of the grant agreement, with all Bakersfield Municipal Code provisions, or with the other applicable rules and regulations. The City will withhold payment until compliance is obtained. In the event of a cancellation, the City shall not be responsible for any reimbursement or payment to Applicant , Contractor, or Sub-Contractor.
The City of Bakersfield reserves the right to cancel or modify this Program at any time prior to grant approval, without notice. Continuation of the Program is subject to sufficient funding as appropriated by the Bakersfield City Council.
Reimbursement Process
To be eligible for reimbursement, a g rant agreement must be executed before work is begun. After the grant agreement has been executed and all necessary permits have been issued, work may proceed. The grants approved in this program will be provided to the business on a reimbursement basis . This means
NOFA - Downtown EOA (September 2024) Page 7
the projects must be completed first before the grant funding will be awarded. The recipient can submit for payment in phases as all activities of the project are completed. Payment requests must include the attached form (Attachment B - Reimbursement Request Form /Progress Report) with attached written proof of expended project costs. Prior to the release of any funding, the city must receive copies of proof of payment for the amount to be reimbursed. A copy of the final invoice for the work completed and proof of payment to the contractor. The submission of receipts/proof of payment is subject to approval by City staff to confirm that project costs were incurred and qualify as an eligible project cost.
Applicants do not have to be in complete code compliance at the time of application for the program, but must be compliant on the building, site or public improvements before reimbursement can be made to the business.
ECD staff will be contacting the Building, Planning and Public Works Departments to make sure the completed improvements conform to all City of Bakersfield Codes, Ordinances, Permits, Site Plan Review, and applicable Design Guidelines. There will be a delay in reimbursement if any work was done out of compliance with the City Code.
City shall have 30 days to review for compliance and approved eligible activities/cost. A fter all requirements set forth above are met, the City shall issue a check for reimbursement of costs incurred, not to exceed the amount awarded as set forth in the grant agreement.
An applicant may not be eligible for a grant if the business applying for the funds has a delinquent bill or outstanding lien issued by the City.
The eligible activities of grant funded improvements or business costs must be completed within 6 months of execution of the grant agreement. If the applicant intends to ask for a grant extension, please submit a request in writing at least 30 days prior to expiration of the grant. An extension may be granted or denied at the discretion of the Economic and Community Development (ECD) Director. The ECD Director is authorized, but not obligated, to grant a maximum of two extensions of up to 90 days each. Furt her requests for extension are subject to approval by the City Council.
Any requests for changes to the activities funded by the grant must also be requested in writing and be approved by the City. Depending on the scope of the requested change, it may need to go back to the City Council for approval.
The ECD Director may authorize an advance of funds not to exceed ten percent (10%) of the grant award upon demonstration of financial hardship.
Reporting Requirements
Progress Reports
With each payment request , a progress report must also be provided on the status of the project. See Attachment B - Reimbursement Request Form/Progress Report. The progress report must include a narrative of the progress made, work yet to be completed and a detailed account of expenditure to date (including receipts, contracts, invoices, etc.).
A final progress report must be submitted to the Economic and Community Development Department upon submittal of final reimbursement request. This report must include a project narrative, before and after pictures of the project, detailed account of expenditures (including receipts, contracts, invoices, etc.), jobs created, or a description of other program objectives met by the project. Failure to submit the required final progress report may disqualify the grant recipient from receiving future funding fro m the City of Bakersfield.
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If the project is not complete or all the funds are not utilized, then all remaining funds may be retained by the City and reprogrammed for other EOA projects.
Attachment A – Downtown EOA Map
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Attachment B – Reimbursement Request Form/Progress Report
ECONOMIC OPPORTUNITY AREA INCENTIVE PROGRAM
INVOICE
PAYMENT REQUEST/PROGRESS REPORT
Grant Agreement No. Payment No.
To: City of Bakersfield Attn: Economic & Community Development Division Address: 1600 Truxtun Avenue Bakersfield, CA 93301
From: Business Name _________________________ Mailing Address: _________________________ _________________________
Note: All payments will be sent to the business name and address listed above. They must be the same as your grant agreement.
Grant Agreement Award Amount: $____________
Reimbursement Requested $____________________________ I certify the allowable costs associated with this payment request reimbursement submittal were paid for with available funding. In addition, I certify that all grant obligations are met as described in the approved grant agreement and only approved activities are being funded.
_______________________________________ _________________________ Business Owner Signature Date
___________________________________
Business Owner Name (Printed)
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Eligible Expenditures (per your approved grant agreement).
You must attach to this form all receipts, estimates, invoices, etc. of eligible costs as well as proof of payment, copies of checks, bank statements, accounting ledgers, etc. Accounting numbers and similar information should be redacted.
List of Detailed Expenditures Cost ($)
$
$
$
$
$
$
$
$
$
TOTAL $
Contractor Information:
Contractor(s) Name: Contractor License
Number:
City Business License
No.
PROGRESS REPORT
This report must include a project narrative of progress to date, before pictures and pictures of what is in progress. If this is a final progress report, then there must be pictures of all components of the completed project. Failure to submit the required progress reports may disqualify the grant recipient from receiving future funding from the City of Bakersfield.
Project Narrative:
Before and After Photos (Attach high quality digital photos to this report)
EOA Update and
Competitive Downtown
EOA Award
Recommendations
EOA Plan - Goals
A locally initiated program that uses
public funds to promote economic
growth within specific geographic
areas to facilitate increased private
sector investment that will in turn
create more tax revenue, promote
businesses growth, and generate new
jobs.
Since activation, the incentive
program has received the following
funding:
$4.7 million PSVS
$1,355,659.97 ARPA
$9,594 TIF
$6,065,253.97 Total
Support Existing Development with
predominantly publicly visible
rehabilitation and renovation of
buildings, site and landscape
enhancements, and related
development fees.
Support Future Development with
demolition, site preparation, and
property acquisition.
Support Business Growth and
Expansion with costs to start-up new
businesses or existing businesses that
want to expand.
Economic
Opportunity
Areas
EOA Activity Report
See full activity report attached to your agenda.
$1,584,844
$1,080,778
$2,901,381
$1,351,922
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Pending Applications Funded Projects Completed Projects ARPA Awarded 30 15 70 31
Downtown EOA
Business Improvement
Program
10/3/24 NOFA released to solicit projects
for business improvements within the
Downtown EOA. Only three eligible
activities:
➢ Exterior Façade Improvements
➢ Site/Property Enhancements
➢ Publicly Visible Rehabilitation/Tenant
Improvements
16 applications submitted requesting
$1,419,265.43 for $400,000 in funding.
Only 8 applications were considered
complete and eligible for committee
review.
Evaluation Criteria
Highest
Score
Possible
Quality of proposed projects, impact to the community and consistency with the goals and objectives of the EOA Plan. 25 Supports the goals and implements components of the Making Downtown Vision Plan and/or the Downtown Streetscape Plan. 20 The site is a vacant or underutilized structure or property, that has been vacant for over three years; either helps restore the tax base with a new or revitalized use or addresses a blighting influence of deteriorating property conditions. 15
Provides a public benefit feature as described in CMC 17.26.090 15 Supports the growth and development of a local small business with less than 50 employees. 10
The project creates new high-density housing units (30 or more dwelling units/acre). 10
Corridor enhancement: business location fronts 18th or 19th Street between L Street and Mill Creek Linear Park. 5
Total 100
Applications were reviewed and scored by four internal
staff members using the following criteria:
Downtown Economic Opportunity Area
Committee Funding Recommendations
Arts Council of Kern: $116,500
Flores Vintage Finds: $ 32,500
Moo Creamery: $ 40,000
Distinctive Coach: $ 20,000
Total $209,000
Next Steps
Allow the 14 partial and unawarded applicants an
additional 45 days to complete and/or update
applications for reconsideration of the remaining funding ($191,000).
Award letters and grant agreements drafted and sent to awarded applicants.
Grants over $40,000 sent to City Council for approval, others approved by ECD Director.
Arts Council of Kern: $116,50027
To comply with Title 24, a new
indoor sprinkler system is needed
for new space at 1018 and 1020
18th Street.
Flores Vintage Finds: $32,500
Paint exterior of building
located at 805 19th Street.
Moo Creamery: $40,000
Publicly visible equipment for new business operations at 801 18th Street.
Distinctive Coach Auto Body & Paint: $20,000
New exterior windows and doors for title 24 compliance, located at 1000 18th Street.