11-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 22-34 – A Resolution adopting policies and procedures for distributing economic development funds to business and/or property owners participating in the Economic Development Business Assistance Plan, and
superseding Resolution No. 17-36; approve a budget amendment to fund the marketing and implementation of the additional programs; and designate the northwest corner of Bellflower Boulevard and Oak Street for the Designated Block Downtown Façade Improvement Program.
DATE: July 11, 2022
EXECUTIVE SUMMARY
Staff is recommending amending the Economic Development Business Assistance Plan (the “Plan”) to include three additional programs, which may help attract and assist property owners and tenants who want to create a new business, improve an existing business, or modernize an existing building within the City. The additional programs are a Designated Block Downtown Façade Improvement Program (Chapter 3.3); a Downtown Artisan (Small Scale Manufacturing) Rental Assistance Program (Chapter 4); and a Small Business Microloan Program (Chapter 5). Each of the Plan’s chapters requires its own application and review process.
RECOMMENDATIONS TO CITY COUNCIL
1) Open the public hearing, take documentary and testimonial evidence; and after considering the evidence, adopt Resolution No. 22-34;
2) Approve a budget amendment to increase the allocation for Account No. 510-44410- 4002 by $420,000 for Chapters 3.3, 4 and 5 of the Plan, and to increase the allocation for Account No. 510-41310-4002 by $40,000 for marketing and promotion using $175,000 from unencumbered funds in the Economic Development Fund and $285,000 from the budget savings resulting from the ARPA funds received by the City;
3) Designate the block of buildings that occupy the northwest corner of Bellflower Boulevard and Oak Street for the Designated Block Downtown Façade Improvement Program; or
4) Alternatively, discuss and take other action related to this item.
- Page 1 of 25 -- Page 1 of 25 -
Staff Report – Economic Development Business Assistance Plan July 11, 2022
FISCAL IMPACT
The proposed program funding amounts are:
Chapter 3.3: Designated Block Downtown Façade Improvement - $175,000 Varies depending on number and condition of buildings
Chapter 4: Downtown Small Scale Manufacturing Rental Assistance - $120,000
Varies depending on size of lease space and market rents Chapter 5: Small Business Microloan - $125,000
Market rate and above loans from $5,000 to $30,000
In addition, $40,000 funding is requested for marketing and promotion.
The proposed amendments to the 2022-23 fiscal year operating budget are as follows:
1) Allocation of $175,000 of the unencumbered funds from the Economic Development Fund for the Designated Block Downtown Façade Improvement program (Account No. 510-44410-4002).
2) Allocation of $120,000 for the Downtown Small Scale Manufacturing Rental Assitance program (Account No. 510-44410-4002), $125,000 for the Small Business Microloan program (Account No. 510-44410-4002), and $40,000 for marketing and promotion (Account No. 510-41310-4002), for the total of $285,000. This funding was previously approved by the City Council on December 9, 2021 by utilizing the budget savings realized from the ARPA funds received by the City during the pandemic.
DISCUSSION
On July 10, 2017, the City Council adopted the Economic Development Business Assistance Plan, which consolidated a number of business assistance programs into one Business Assistance Plan, making it more efficient for staff and City Council to assist business and property owners to help with the City’s economic improvement.
Staff is recommending the Plan be amended to include three new programs: the Designated Block Downtown Façade Improvement Program (Chapter 3.3); the Downtown Small Scale Manufacturing Rental Assistance Program (Chapter 4); and a Small Business Microloan Program (Chapter 5). Additionally, the Business Assistance Plan guidelines were reviewed and minor updates were made, most notable of which are the incorporation of a 1-year time limit (with one 6-month extension) for applicants to complete approved improvements under the plan and limiting Chapter 1 Downtown Business Alcohol Licensing Assitance to Bellflower Boulevard south of the 91 Freeway as a result of and to remain consistent with the recommended changes in the Zoning Ordinance Text Amendment for the Town Center (see highlighted sections in Exhibit “A”).
- Page 2 of 25 -- Page 2 of 25 -
Staff Report – Economic Development Business Assistance Plan July 11, 2022
DISCUSSION – Continued
The Designated Block Downtown Façade Improvement Program – Chapter 3.3
The Designated Block Downtown Façade Improvement Program is being added to Chapter 3 - Commercial Façade Improvements. The City Council will designate specific blocks in the Downtown to be eligible for this category of the Plan to improve aesthetics of the downtown area. Participating property owners will enter into a Grant of Façade Easement with the City, which authorizes the City to construct and maintain improvements to the façades in that block. The term of the façade easement will be 10 years from the date of the fully executed and recorded agreement Initially, this program would be funded with $175,000 from the Economic Development Fund. Should this program be approved by City Council, staff is recommending Chapter 3.3 initially be used to improve the façades of the structures at the northwest corner of Bellflower Boulevard and Oak Street to complement the Edgeway – Downtown Bellflower development currently being constructed at Bellflower Boulevard and Mayne Street.
Downtown Artisan Manufacturing Rental Assistance – Chapter 4
The Downtown Artisan Manufacturing Rental Assistance Program is being added to the Plan as Chapter 4. The rental assistance is offered for a maximum period of 24-months and begins at 60% of the starting monthly rent amount. This amount is reduced by 1/24 of the assistance each month over the 24-month period (for example: 24/24 month 1, 23/24 month 2, 22/24 month 3, etc.). The assistance will not exceed $1,000 in any given month and the maximum overall subsidy is $12,000 (see Attachment “A” - Artisanal Manufacturing Rental Assistance Sample Calculation). This program is designed to help Artisan Manufacturing Businesses starting out or scaling up from home-based operations adjust to paying the rent associated with a brick and mortar storefront in the downtown.
Small Business Microloan – Chapter 5
The Small Business Microloan is being added to the Plan as Chapter 5. Microloans under this chapter are available from $5,000 to $30,000 for working capital, equipment/machinery purchases, inventory purchases, start-up capital, and/or direct business expenses. The loan will be provided at Prime Rate plus 2% interest rate. Term of the loan is 10 years. Applicant businesses must be for-profit entities and must create or retain one full-time equivalent (FTE) job, which may include the business owner/operator.
Applications will be selected by the Economic Development Department based on the completion of the application and required attachments, as well as how the proposed improvements meet the goals and objectives of the Plan. All applications will require final approval from the the City Council.
- Page 3 of 25 -- Page 3 of 25 -
Staff Report – Economic Development Business Assistance Plan July 11, 2022
DISCUSSION – Continued
Over the next two years, Chapters 4 and 5 and the marketing of these programs will be funded by the budget savings realized through the City’s Revenue Loss funding via the American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery (CSLFR) funds.
ATTACHMENTS
Resolution No. 22-34....................................................................................................... 5 Exhibit A – Artisanal Manufacturing Rental Assistance Sample Calculation ................... 8 Exhibit B – Updated Business Assistance Program Guidelines ...................................... 9 - Page 4 of 25 -- Page 4 of 25 -
CITY OF BELLFLOWER
RESOLUTION NO. 22-34
A RESOLUTION ADOPTING POLICIES AND PROCEDURES
FOR DISTRIBUTING ECONOMIC DEVELOPMENT FUNDS TO
BUSINESS AND/OR PROPERTY OWNERS PARTICIPATING IN
THE ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE
PLAN, AND SUPERSEDING RESOLUTION NO. 17-36
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On October 8, 2013, the Governor signed Senate Bill No. 470 Community development: economic opportunity, in an effort to promote economic development on a local level so that communities can enact local strategies to increase jobs, create economic opportunity, and generate tax revenue for all levels of government;
B. On June 14, 2021, the City Council approved the City’s Operating Budget for Fiscal Years 2021-22 and 2022-23, in which $220,000 was approved in each fiscal year for special economic development programs related to marketing, business retention, tenant improvements, web/social media business support, façade/sign improvements, restaurant attraction, and other financial assistance to business operators and developers;
C. On December 9, 2021, the City Council approved the allocation of $21.5 million of American Rescue Plan Act (ARPA), Coronavirus State and Local Fiscal Recovery (CSLFR) funds and associated general fund budget savings;
D. The budgeted and allocated amounts of funds for the economic programs described above is limited, and this Resolution is intended to establish a Business Assistance Plan that is reasonably equitable to all applicants;
E. On July 11, 2022, the City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code § 6066; and
F. After careful consideration, including a review of the documentary and testimonial evidence submitted during the public hearing, the City Council finds it is in the public interest to adopt this Resolution.
- Page 5 of 25 -
City of Bellflower
Resolution No. 22-34
SECTION 2. Plan Established, Findings. This Resolution incorporates by reference the amended and restated Bellflower Economic Development Business Assistance Plan (Plan) attached as Exhibit “A,” and incorporated by reference. Subject to the terms and conditions set forth in this Resolution, and such additional administrative policies and procedures that may be promulgated by the City Manager to implement this Resolution, business owners and property owners may be approved for assistance as set forth in the attached Plan subject to final approval by either the Economic Development Subcommittee or the City Council. The Plan is necessary to implement the public purpose set forth in Government Code § 52200.4.
SECTION 3. Administration. The Program Manager is authorized to administer the Plan. The City Manager is authorized to promulgate such administrative policies and procedures that are needed to implement the Plan. All Applications submitted to Programs under the Plan must be approved by either the Economic Development Subcommittee or the City Council.
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. To the extent that Resolution No. 17-36 (adopted July 10, 2017), and any other resolution pertaining to the Economic Development Business Assistance Plan, are incorporated into this Resolution, it is superseded in its entirety.
SECTION 7. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 8. The Mayor, or presiding officer, is hereby authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or duly appointed deputy, is directed to attest thereto.
SECTION 9. This Resolution will become effective immediately upon adoption.
- Page 6 of 25 -
City of Bellflower
Resolution No. 22-34
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 11th DAY OF JULY, 2022.
Ray Dunton, Mayor
ATTEST:
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
Karl H. Berger, City Attorney
- Page 7 of 25 -
EXHIBIT A
Small Scale Manufacturing Rent Subsidy Program
Matrix
Starting Rent Amount:1,500.00$ Enter Starting Rent Payment Here Maximum Subsidy:$12,000
Initial Monthly Subsidy:900.00$ 60% of Starting Rent, not to exceed $1,000 Monthy Subsidy Reduction:37.50$
Month
Monthly Subsidy
Amount
Subsidy
Remaining
To Date Total
Subsidy
Provided
1 900.00$ $11,100.00 900.00$
2 862.50$ $10,237.50 1,762.50$
3 825.00$ $9,412.50 2,587.50$
4 787.50$ $8,625.00 3,375.00$
5 750.00$ $7,875.00 4,125.00$
6 712.50$ $7,162.50 4,837.50$
7 675.00$ $6,487.50 5,512.50$
8 637.50$ $5,850.00 6,150.00$
9 600.00$ $5,250.00 6,750.00$
10 562.50$ $4,687.50 7,312.50$
11 525.00$ $4,162.50 7,837.50$
12 487.50$ $3,675.00 8,325.00$
13 450.00$ $3,225.00 8,775.00$
14 412.50$ $2,812.50 9,187.50$
15 375.00$ $2,437.50 9,562.50$
16 337.50$ $2,100.00 9,900.00$
17 300.00$ $1,800.00 10,200.00$
18 262.50$ $1,537.50 10,462.50$
19 225.00$ $1,312.50 10,687.50$
20 187.50$ $1,125.00 10,875.00$
21 150.00$ $975.00 11,025.00$
22 112.50$ $862.50 11,137.50$
23 75.00$ $787.50 11,212.50$
24 37.50$ $750.00 11,250.00$
- Page 8 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
I. Purpose.
This Plan is adopted pursuant to Government Code § 52202 to encourage private investment when public support is needed to make Businesses economically feasible within the City of Bellflower. Businesses seeking to make improvements on real property within the designated Program Area may utilize the Assistance Programs established by this Plan.
II. Definitions.
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Plan.
Words and phrases not defined by this Plan have the meanings set forth in the Government Code as the Economic Opportunity regulations commencing at Government Code § 52200, et seq., the Bellflower Municipal Code (“BMC”), and any related or successor statutes or regulations (collectively, the “Authorizing Law”).
“Assistance Program” means a category of assistance provided pursuant to this Plan to provide economic opportunity within the designated Program Areas to promote the Plan. The types of Assistance Programs are listed below. Applicants may be required to demonstrate qualifications beyond the General Criteria in order to apply for an Assistance Program.
“Applicants” generally means new or existing commercial businesses seeking to locate or expand within the Program Area. Applicants must meet the minimum criteria identified by the Assistance Program for which they seek support pursuant to this Plan.
“Business” means professions, trades, and occupations and all and every kind of calling carried on for profit.
“Conditional Use Permit” or “CUP” means a discretionary permit issued per the BMC to allow alcohol sales within the Downtown.
“Director” means the Director of Economic Development, or designee.
“Downtown” means that area graphically identified in attached Exhibit “A,” which is incorporated by reference.
“General Criteria” are minimum qualifications that Applicants must meet to apply for an Assistance Program.
- Page 9 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
“Program Area” means the area identified by each Program as the geographical area within which Applicant’s business/property must be located.
“Restaurant” means a bona fide eating place as defined by Business and Professions Code § 23038.
“Zoning” references any of the following zones within the Downtown:
the Downtown Bellflower Transit Oriented Development Specific Plan; the Town Center District (TC); the Bellflower Village Overlay Zone (BVOZ); the Bellflower Village Overlay Zone – North (BVOZ-N); the Design for Development (DFD) area; and south of Cedar Street extending to the southerly City boundary, encompassing those properties on both sides of Bellflower Boulevard zoned General Commercial (C-G).
III. Procedure.
Applications submitted for an Assistance Program will be processed as follows:
A. Except as otherwise provided, the Director is authorized to administer and implement the Plan.
B. Applicants must complete a Plan application in a form provided by the Director.
C. The Director will review each application to ensure that the Applicant meets all requirements of this Plan and the Assistance Program identified by the Applicant.
D. Based upon the application provided by an Applicant, and such additional information the Director may require from the Applicant, the Director must determine that the assistance under this Plan is necessary for the economic feasibility of the Business and that such assistance cannot be obtained on economically feasible terms in the private market.
E. If the Director finds that the Applicant qualifies for and should obtain support from an Assistance Program, the Director should provide written notice to the Applicant regarding that determination.
F. As soon as is practicable, but not later than 30 days after determining an Applicant qualifies for support, the Director will schedule a public hearing for the City Council to ratify the Director’s determination pursuant to Government Code § 52202(B).
- Page 10 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
G. Following the City Council’s ratification of the Director’s decision, the Applicant must execute an agreement with the City in a form approved by the City Attorney. The City Council’s authorization for entering into such an agreement will expire 30 days from the meeting at which it was delegated. If the Applicant fails to execute an agreement within that time period, the City Council’s authorization will expire and be of no further force or effect.
H. Nothing in this Plan, or otherwise, requires the Director to approve an application or provide support under this Plan. The City Manager, or designee, may suspend the Plan at any time upon good cause.
Moreover, the City Council can cancel or modify this Plan at any time without notice to any Applicant.
IV. General Criteria. Applicants must comply with the following to apply for an Assistance Program:
A. Applicants must be a new business or an existing business seeking to locate, expand, or aesthically/structurally improve structures at their existing location within the Program Area for each Assistance Program.
B. Applicants must either possess a valid business license or, if constructing improvements as a new business, obtain a business license before the City issues a final certificate of occupancy.
C. Where applicable, Applicants must provide evidence to the Director showing the amount of private investment within the Business.
D. Applicants must demonstrate good cause for public assistance under this Plan. Good cause includes, without limitation, insufficient start-up capital (for new businesses); inability to secure conventional financing; initial cash flow challenges (for new businesses); or credit overextension.
E. Applicants must identify the number of persons that are employed and will be employed by the Business.
F. Applicants must provide documentary evidence that they own the Business and that they own the real property at the Business’s location, or are legally authorized to act on the owner’s behalf as to submitting an application.
V. General Conditions.
A. For all Assistance Programs, Applicants must execute an agreement with the City in a form approved by the City Attorney which, at a - Page 11 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
minimum, defends and indemnifies the City for any actions undertaken under this Plan; requires payment of prevailing wages; and otherwise complying with the Authorizing Law.
B. Applicants must promote the City of Bellflower in all their advertisement and marketing materials and promotion.
C. Applicants must provide an endorsement for the City of Bellflower in any future applications submitted by the City of Bellflower seeking awards, marketing, and other similar activities.
D. The Plan is dependent upon budget allocations determined by City Council resolution. Funding the Plan is dependent upon available, unexhausted and unencumbered appropriations. Should the City Council not appropriate sufficient funding for the Plan, all pending applications will be denied without the need for further notice to an Applicant.
E. Improvements made under this plan must be completed within one-year after the City Council approves an application. The Director is authorized to approve one 6-month extension to this deadline for good cause shown.
F. If obtaining support under this Plan, Applicants must pay prevailing wages for all improvements related to the Business pursuant to Labor Code § 1720, et seq.
VI. Assistance Program: South Bellflower Boulevard Business Alcohol Licensing Assistance (Chapter 1)
A. Type of Support. This Assistance Program offers the following support to a Business located on Bellflower Boulevard south of the 91 Freeway graphically identified in attached Exhibit “B,” which is incorporated by reference:
1. City will absorb all City fees associated with the processing of a CUP.
2. City staff will provide the CUP entitlement processing effort, public hearing notification effort, and similar requirements. This excludes plan preparation and CUP exhibit costs that the applicant would need to prepare as part of the CUP application submittal package.
B. Additional conditions. In addition to the General Conditions, an Applicant must comply with the following:
- Page 12 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
1. Applicant’s business must be located within the South Bellflower Boulevard area.
2. If the Application is a restaurant:
a. The Applicant must be a sit-down restaurant with a dining room.
b. The restaurant may be either table-service or counter- service.
c. A minimum of 51% of the business’s annual gross
receipts must be from food service.
3. If the applicant is a business other than a restaurant:
a. The Applicant’s business must comply with applicable law.
b. If approved for the Program, the on-site sale and
consumption of alcoholic beverages will be an ancillary feature of the business.
4. The Applicant is responsible for obtaining all required licenses and permits (e.g., Department of Alcoholic Beverage Control; Los Angeles County Health Department; Los Angeles County Sanitation District; City of Bellflower) and initiating the restaurant or retail operation before expiration of the CUP (typically one year).
VII. Assistance Program: Downtown Restaurant and Retail Assistance, Expansion, and Modernization (Chapter 2)
A. Type of Support.
1. Restaurant assistance loans for improvements or expansion (Chapter 2.1).
a. Loans are available for eligible improvements as defined in Section VII.C.4.a.
b. Loans under this program are available up to a maximum amount of $25,000 for tenants.
c. For significant project improvements, an additional
$15,000 can be made available, at the Director’s sole
discretion as confirmed by the City Council, to the
Applicant of a joint tenant-property owner project.
d. Loans are provided at a 0% interest rate for a term of up to 5 years, with 100% of the total loan amount forgivable at the end of the term. The loan amount that may be
forgiven is amortized over the term of the loan agreement.
- Page 13 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
2. Business assistance loans for building modernization or conversion projects (Chapter 2.2).
a. Loans under this program are available up to a maximum amount of $60,000 for major building modernization
improvements or conversion projects as defined in
Section VII.C.4.b.
b. Loans are available to Applicants that are property owners who wish to modernize their buildings for new retail or restaurant uses or convert their retail or office space into a restaurant use.
c. Loans are provided at a 0% interest rate for a term of up to 10 years, with 50% of the total loan amount forgivable after three years. The loan amount that may be
forgiven is amortized over three years. Applicants will begin making loan payments commencing the 37th month
of the loan agreement. Loan payments will be made on a
monthly basis.
B. Additional criteria. In addition to the General Criteria, an Applicant must provide the following:
1. Applicants of the Program will be required to complete the program application and submit all required attachments (as specified on the application).
2. Matching Requirements: Loans under this program will provide a match of one-half (50%) of eligible project costs. This means that if an improvement project is estimated to cost $50,000 overall, the City will loan $25,000 to the Applicant.
3. Loans will be distributed on a reimbursable basis.
4. If the business and/or property is sold or transferred before the 3-year amortization period ends, the remaining balance of the loan will be due upon sale/transfer.
C. Additional conditions. In addition to the General Conditions, an Applicant must comply with the following:
1. Applicant’s business or property must be located within the Downtown.
2. Maintenance Requirements for the Restaurant Assistance Loan:
Applicant and property owner will agree to maintain the improved premises in a satisfactory manner for a period of not less than - Page 14 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
three years after their completion. Specifically, Applicant and property owner will certify that they will:
a. Maintain the premises and the improvements funded
through the Program in good condition including
maintenance of the building interior and exterior and
perimeter clean and free of graffiti, and the adjacent
sidewalks clear and free of litter in accordance with
industry health and safety standards and in accordance
with this Agreement.
b. Maintain the building façade in good condition clean and free of graffiti and litter.
c. Maintain any building signage in good condition. Signage funded in part or in whole by the Program will not be
removed or changed without the written approval of the
City except for signage changes made necessary by
changes in tenancy.
3. Maintenance Requirements for the Business Modernization or Conversion Loan:
The Applicant will agree to maintain the modernized or converted Premises for a period of not less than 10 years after its completion. Specifically, Property Owner will certify that he/she will:
a. Maintain the premises and the improvements funded
through the Program in good condition including
maintenance of the building interior and exterior and
perimeter clean and free of graffiti, and the adjacent
sidewalks clear and free of litter in accordance with
industry health and safety standards and in accordance
with this Agreement.
b. Maintain the building façade in good condition clean and free of graffiti and litter.
c. Maintain any building signage in good condition. Signage funded in part or in whole by the Program will not be
removed or changed without the written approval of the
City except for signage changes made necessary by
changes in tenancy.
4. Eligible Improvements:
- Page 15 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
a. Eligible improvements include permanent interior and exterior building improvements which may include, without limitation, the following:
• Plumbing Improvements
• Electrical Improvements
• Kitchen Construction/Improvements
• Major Built-In Kitchen Equipment
• Significant Dining Room Improvements
• Flooring
• Lighting
• Booths or other anchored seating
• Interior walls
• Counter refurbishing
• Americans with Disabilities Act (ADA)
Improvements
• New and/or upgraded wall signs and/or projecting
signs
• Windows, Doors, Awnings/Canopies, Paint,
Exterior Lighting, Security Lighting
• Permanent Patio/Outdoor Seating Improvements
• New murals and/or mural restoration
• Design and/or Architecture Costs
b. Eligible modernization improvements and conversion
projects include permanent interior and exterior building improvements which may include, without limitation, the following:
• Conversions of Retail or Office Use into
Restaurant Use
• Grease Trap Installation
• Utility Upgrades
• Americans with Disabilities Act (ADA)
Improvements
• Exhaust Hoods
• Seismic Retrofitting
• Hazmat Abatement (Asbestos and Lead-Based
Paint)
• Roof Repair or Replacement
• HVAC Replacement/Repair
Additional improvements that are deemed to be consistent with - Page 16 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
the intent of the program will be reviewed and
approved/disapproved on a case‐by‐case basis by the Director.
VIII. Assistance Program: Commercial Façade Improvements (Chapter 3)
A. Type of Support.
This Program offers two categories of façade improvement loans, with an option to increase the loan cap to help cover design costs. This is an endeavor by the City to leverage public and private funds in an effort to enhance the physical appearance and economic vitality of commercial properties throughout the city.
1. City-Wide Matching Loan (Chapter 3.1).
a. The Program Area for this category of the Program
encompasses the entire City.
b. Allowed façade upgrades must be exterior improvements visible from the main street. Other façade upgrades (side and rear) may be included as additions to the primary
upgrades if the improvements are visible from a
secondary street or public space, subject to approval by the City Council.
c. Loan will provide a match of two‐thirds (66%) of eligible project costs, up to a maximum of:
i. Fifteen Thousand dollars ($15,000), and
ii. An additional Five Thousand dollars ($5,000) with
property owner participation and match.
d. An additional $5,000 may be made available to an
Applicant who is both the business owner and the
property owner of the subject property.
e. Architectural Design or Design Assistance: The City will increase the loan cap for Applicants that wish to hire a professional designer. This assistance may be requested for up to $3,000 dollars. The designer chosen by the
Applicant must provide a portfolio of previous design
projects, including scope of work, cost, and completion date.
f. Loans are provided at a 0% interest rate for a term of up to 5 years, with 100% of the total loan amount forgivable at the end of the term. The loan amount that may be
forgiven is amortized over the term of the loan agreement.
2. Downtown Corridor Matching Loan (Chapter 3.2).
a. Property must be located within the Downtown.
- Page 17 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
b. Allowed façade upgrades must be exterior improvements visible from the main street. Other façade upgrades (side and rear) may be included as additions to the primary
upgrades if the improvements are visible from a
secondary street or public space, subject to approval by the City Council.
c. Loan will provide a match of two‐thirds (66%) of eligible project costs, up to a maximum of:
i. Twenty Thousand dollars ($20,000), and
ii. An additional Ten Thousand dollars ($10,000) with
property owner participation and match.
d. An additional $10,000 may be made available to an
Applicant who is both the business owner and the
property owner of the subject property.
e. Architectural Design or Design Assistance: The City will increase the loan cap for Applicants that wish to hire a professional designer. This assistance may be requested for up to $3,000 dollars. The designer chosen by the
Applicant must provide a portfolio of previous design
projects, including scope of work, cost, and completion date.
f. Loans are provided at a 0% interest rate for a term of up to 5 years, with 100% of the total loan amount forgivable at the end of the term. The loan amount that may be
forgiven is amortized over the term of the loan
agreement.
3. Designated Block Downtown Façade Improvement Program (Chapter 3.3).
a. The Program Area for this category of the program is Downtown.
a. Specific Blocks of the Downtown will be designated
eligible for this category of the program by City
Council.
b. Before receiving assistance pursuant to this Program, a property owner must grant a Façade Easement, in a
document approved by the City Attorney, to the City which authorizes the City to construct and maintain
improvements to the façade areas (Easement Areas) in
the Designated Block.
c. City will design the improvements for the Easement Areas within the Designated Block and will seek Grantors’ input regarding reasonable accommodation of business
identification signage.
- Page 18 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
d. The term of the Façade Easement is 10 years from the date of the fully executed and recorded agreement.
B. Additional criteria. In addition to the General Criteria, an Applicant must provide the following when and where applicable:
1. Matching Requirements: The Loan (Citywide Matching Loan or Downtown Corridor Matching Loan) will provide a match of two‐ thirds (66%) of eligible project costs. This means that if a façade improvement project is estimated to cost $15,000, the City will reimburse $10,000.
2. Loans will be distributed on a cost-reimbursement basis.
Applicant must provide the Director with a copy of the invoice the Applicant wishes to have reimbursed, and will also provide proof of invoice payment (e.g. cancelled check or credit card charge receipt). Once received, the Director will begin processing reimbursement payment.
3. If the business and/or property is sold or transferred before the amortization period ends, the remaining balance of the loan will be accelerated and must be paid to the City upon sale/transfer of the property.
C. Additional conditions. In addition to the General Conditions, an Applicant must comply with the following:
1. All improvements must comply with applicable law including, without limitation, building codes and zoning regulations. Eligible improvements include, without limitation:
• Removal of old signs, awnings and other exterior clutter • Exterior painting
• Repair or replacement of exterior siding/cladding
(including the construction of new façade elements and
architectural details)
• Installation of new entry doors that meet ADA accessibility requirements
• Installation of display windows
• Installation of new canvas awnings over windows and
entries
• Installation of new signs
• Installation of new exterior lighting
- Page 19 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
• Installation of permanent landscaping (Downtown only) that includes, without limitation, the replacement of plants; groundcover; hardscape; and rehabilitation of existing
landscaping if approved by the Director of Planning and Building Services.
• Construction of outdoor dining or gathering spaces
Additional improvements that are deemed to be consistent with the intent of the program will be reviewed and
approved/disapproved on a case‐by‐case basis by the Director.
IX. Assistance Program: Downtown Ar tisan Manufacturing Rental Assistance (Chapter 4)
A. Type of Support.
This program provides rental assistance to Artisan Manufacturing businesses, as defined in the Bellflower Municipal Code (BMC), locating in the Downtown.
1. Rental assistance may be provided for a maximum period of 24- months. If an application is approved, the City may pay at least 60% of the verified monthly rental amount for the first month of an applicant’s occupancy. Thereafter, the City’s payments will decrease by an amount equal to 1/24 for each month of the 24- month assistance period (e.g., 24/24 month 1, 23/24 month 2, 22/24 month 3). The City will not be a party to an applicant’s lease agreement; may discontinue these payments at any time; and the applicant must defend and indemnify the City for any matter arising from the City’s rental payments. The City’s payments to any one property owner will not exceed $1,000 in any given month and the maximum total payments may not
exceed $12,000.
B. Additional criteria. In addition to the General Criteria, an Applicant must provide the following:
1. Applicant(s) must sign a minimum 2-year lease to qualify for the program or have a minimum of 2-years remaining on an existing lease. At the time of filing an application, an applicant must provide a draft or executed copy of a lease for the commercial space to be occupied. The City will not commence paying rent without a notarized copy of the fully executed lease. Personal guaranty of applicant is required.
- Page 20 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
2. Payments will be made on a reimbursement basis, with the Applicant required to submit documentation of the payment of rent, and the Property Owner required to submit confirmation of the receipt of rent for each period for which assistance is to be provided.
3. During the period of assistance, the Applicant cannot sell or assign the business without approval by City, which will not be unreasonably withheld as long as the business continues to operate in the same capacity as when the assistance was approved by City Council.
C. Additional conditions. In addition to the General Conditions, an Applicant must comply with the following:
1. Applicant’s business must be located within the Downtown, open in, and occupy an existing building for the duration of the assistance, and continue to operate as an Artisan Manufacturing business.
2. Applicant must meet with a representative from or complete a training course with a recognized small business or
entrepreneurial training program such as SCORE (Service Corps of Retired Executives), a local SBDC (Small Business
Development Center, 37 Oaks, or Emprendedor@s. All
applicant(s) must submit a business plan.
3. Business must create or retain at least one full-time equivalent (FTE) job, which may include the business owner/operator.
X. Assistance Program: Small Business Microloan (Chapter 5)
A. Type of Support.
1. Small business microloans for new business establishment or expansion (Chapter 2.1).
a. Loans are available for eligible uses as defined in
Section X.C.3 and Section VII.C.4.a.
b. Loans under this program are available from $5,000 up to a maximum amount of $30,000 for businesses.
c. Loans are provided for a term of 10 years at the Prime Rate (as published by the Wall Street Journal at the
time of application) plus 2%.
B. Additional criteria. In addition to the General Criteria, an Applicant must - Page 21 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
provide the following:
1. Applicants of the Program will be required to complete the program application and submit all required attachments (as specified on the application).
2. If the business is sold or transferred before the term of the loan ends, the remaining balance of the loan will be due upon sale/transfer.
3. On a best efforts basis, each loan is supported with a co-signer with reasonable credit and sufficient income, or collateral, which may include business assets such as cash, accounts receivable, inventory, equipment, intellectual property and/or real property.
4. A Personal Guaranty is required from all owners with 20% or more in ownership of the business.
5. To apply, Business must be an existing for-profit business located within a commercial building in the City or in the process of establishing such a business as evidenced by a draft or fully executed lease or a letter of intent to lease. City will not fund the loan without submission by Applicant of a fully executed lease.
6. Applicants must create or retain 1 full-time equivalent (FTE) job , which may include the business owner/operator.
C. Additional conditions. In addition to the General Conditions, an Applicant must comply with the following:
1. Maintenance Requirements for the Small Business Microloan Program:
Applicant must agree to maintain the business premises in a satisfactory manner for a period of not less than the term of the Loan. Specifically, Applicant must certify that it will:
a. Maintain the premises and any improvements funded through the Program in good condition including maintenance of the building interior and exterior and perimeter clean and free of graffiti, and the adjacent sidewalks clear and free of litter in accordance with industry health and safety standards and in accordance with this Agreement.
- Page 22 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
b. Maintain the building façade in good condition clean and free of graffiti and litter.
c. Maintain any building signage in good condition. Signage funded in part or in whole by the Program will not be removed or changed without the written approval of the City except for signage changes made necessary by changes in tenancy.
2. Eligible uses of the loan proceeds may include, without limitation, the following:
• Working Capital
• Equipment/Machinery Purchases
• Inventory Purchases
• Start-up Capital
• Direct Business Expenses
XI. Review of Program.
Every twenty-four months, the City Council should review this Plan to determine if modifications are needed to address operational changes, amendment to governing law, actual experiences encountered during the prior twenty-four months, and changes in funding availability.
- Page 23 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
EXHIBIT “A”
- Page 24 of 25 -
BELLFLOWER BUSINESS ASSISTANCE PLAN
EXHIBIT “B”
- Page 25 of 25 -