11-C
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 24-19 – 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. 22-34.
DATE: April 8, 2024
EXECUTIVE SUMMARY
Staff is recommending amending the Economic Development Business Assistance Plan (the “Plan”) to include two additional programs, which may help 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 Downtown Restaurant Assistance Program for Regulatory Requirements (Chapter 2.3) and the Chamber of Commerce New Business Welcoming Program (Chapter 6). Each of the Plan’s chapters requires its own application and review process. Additionally, modifications to the Plan are being proposed to expand the Restaurant and Retail Assistance, Expansion, and Modernization program (Chapters 2.1, 2.2) citywide and to consolidate Chapter 3.1 into one city-wide façade improvement program.
RECOMMENDATIONS TO CITY COUNCIL
1) Open the public hearing, take documentary and testimonial evidence; and after considering the evidence, adopt Resolution No. 24-19; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None. Two-year funding of $885,000 for the Bellflower Business Assistance Plan was included in the City’s Operating Budget for Fiscal Years 2023 -24 and 2024-25 (Account No. 510-44410-4002).
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Staff Report – Economic Development Business Assistance Plan April 8, 2024
PUBLIC NOTICE
On April 12, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on April 12, 2024 a Public Hearing Notice was published in the Los Cerritos Community News newspaper.
ENVIRONMENTAL REVIEW
The City reviewed the environmental impacts of this activity under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”). CEQA Guidelines §§ 15060(c)(2), 15061(b)(3), and 15378 exempt activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, activities where there is possibility that it may have a significant effect on the environment, and activities that do not constitute a “project” as defined, respectively.
This Resolution is for general policies and procedure-making. Any subsequent funding request made pursuant to the Plan ordinance will be evaluated separately under the CEQA Guidelines. Accordingly, this Resolution is exempt from further review.
DISCUSSION
On July 11, 2022, the City Council amended the Economic Development Business Assistance Plan, adding three business assistance programs: the Designated Block Downtown Façade Improvement Program; the Downtown Artisan (Small Scal e Manufacturing) Rental Assistance Program; and the Small Business Microloan Program.
The City’s business assistance programs are consolidated into the Business Assistance Plan. The Plan is organized into Chapters making it 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 two new programs: Downtown Restaurant Assistance Program for Regulatory Requirements (Chapter 2.3) and the Chamber of Commerce New Business Welcoming Program (Chapter 6). Additionally, the Business Assistance Plan guidelines were reviewed and minor updates were made, most notable of which are the expansion of the Restaurant and Retail Assistance, Expansion, and Modernization program (Chapters 2.1, 2.2) citywide; the consolidation of Chapter 3.1 into one city-wide façade improvement program; and added flexibility in the loan matching requirements.
In 2013, Senate Bill No. 470 was approved by the Governor, which provided local governments the ability to use local funds to conduct economic development activities after the dissolution of redevelopment. This bill added Section 52200 to the Government Code, Economic Opportunity. Under this code section, Economic Opportunity includes:
(a) job creation, retention, or expansion; (b) an increase in property tax revenue; (c) creation of affordable housing; (d) sustainable communities projects; and (e) transit priority projects. The programs in the Plan meet the job creation, retention, and expansion requirement of Government Code Section 52200.
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Staff Report – Economic Development Business Assistance Plan April 8, 2024
DISCUSSION – Continued
Downtown Restaurant Assistance Program for Regulatory Requirements (Chapter 2.3)
Chapter 2.3 is intended to maintain the success of existing businesses. In some instances, such businesses may have expanded too rapidly or been challenged with unexpected federal, state, or local government requirements. In such circumstances, the City’s assistance is necessary to ensure that otherwise successful businesses are not prematurely closed. In sum, Chapter 2.3 allows the City Council to grant not more than $20,000 annually to successful dining establishments that are under threat of closure for failure to adhere with federal, state, or local regulations as to sales tax. Under no circumstances will the City grant more than a total of $100,000 to any individual grantee.
Potential grantees must have generated a minimum of $1,000,000 in annual gross revenues during the the twelve months before filing its application. Additionally, the grant will immediately terminate upon the grantee’s closure for longer than two weeks; upon any transfer of ownership; if outstanding sales tax debt is satisfied by other means; or if the grantee doesn’t not stay current with ongoing quarterly sales tax payments or any previously arranged payment schedules with the Board of Equalization.
Applications will be selected for City Council consideration 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 City Council.
Chamber of Commerce New Business Welcoming Program (Chapter 6)
This program is an endeavor by the City, in partnership with the Bellflower Chamber of Commerce (Chamber), to leverage public and private funds in an effort to provide practical resources to the Bellflower business community to encourage economic growth citywide. This Program offers reimbursement to the Chamber for the cost of each new business’s first year of membership, including a new business Ribbon Cutting Ceremony, planned and executed by Chamber staff.
Based upon available funding, as determined by the City’s current budget, reimbursement to the Chamber for memberships is available for qualifying business establishments for not more than a maximum one-time amount of $220 for one year of Chamber membership. The reimbursement amount up to a maximum of $220 is based on each business’s number of employees pursuant to the Chamber’s Annual Membership Cost schedule.
ATTACHMENT
Resolution No. 24-19....................................................................................................... 4
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CITY OF BELLFLOWER
RESOLUTION NO. 24-19
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. 22-34
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 July 11, 2022, the City Council adopted Resolution No. 22 -34 which, among other things, restated the Economic Development Business Assistance Plan by consolidating a number of business assistance programs into one Business Assistance Plan.
C. On June 14, 2023, the City Council approved the City’s Operating Budget for Fiscal Years 2023-24 and 2024-25, in which $885,000 was approved over two years 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;
D. This Resolution amends the City’s Economic Development Business Assistance Plan (the “Plan”) which governs policies and procedures for distributing economic development funds and is necessary to implement the public purpose set forth in Government Code Section 52200, et. seq.
E. 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 for all applicants;
F. On April 8, 2024, the City Council held a public hearing to receive public testimony and other evidence regarding the proposed Plan, without limitation, information provided to the City Council by the Economic Development Director and public testimony; and
G. Notice of Public Hearing before the City Council was duly given and published in the time, form, and manner as required by law;
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City of Bellflower
Resolution No. 24-19
H. The findings in this Resolution are made based on the entire administrative record including testimony and evidence presented to the City Council at its April 8, 2024, public hearing including, without limitation, the staff reports submitted by the Economic Development Director.
SECTION 2. Environmental Assessment. The City reviewed the environmental impacts of this activity under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal.
Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”). CEQA Guidelines §§ 15060(c)(2), 15061(b)(3), and 15378 exempt activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, activities where there is possibility that it may have a significant effect on the environment, and activities that do not constitute a “project” as defined, respectively. This Resolution is for general policies and procedure-making. Any subsequent funding request made pursuant to the Plan ordinance will be evaluated separately under the CEQA Guidelines. Accordingly, this Resolution is exempt from further review.
SECTION 3. Adoption; supersession. This Resolution supersedes Resolution No. 22-34 and adopts the restated Bellflower Economic Development Business Assistance Plan which is attached as Exhibit “A,” and incorporated by reference.
SECTION 4. Administration. The City Manager, or designee, is authorized to administer the Plan and authorized to promulgate such administrative policies and procedures that are needed to implement the Plan. All Applications submitted under the Plan must be approved by the City Council.
SECTION 5. 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 6. Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts were made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 7. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
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City of Bellflower
Resolution No. 24-19
SECTION 8. Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution . It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 9. Severability. 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 10. 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 11. The Mayor, or presiding officer, is authorized to affix its signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or its duly appointed deputy, is directed to attest.
SECTION 12. Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 8th DAY OF APRIL, 2024.
Dan Koops, Mayor
ATTEST:
__
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
KARL H. BERGER, CITY ATTORNEY
__
Justin A. Tamayo, Deputy City Attorney
ATTACHMENT:
Exhibit A - Restated Economic Development Business Assistance Plan - Page 6 of 27 -
City of Bellflower
Resolution No. 24-19
Exhibit “A”
Restated Bellflower Business Assistance Plan
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BELLFLOWER ECONOMIC DEVELOPMENT 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.
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“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).
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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 aesthetically/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 minimum, - Page 10 of 27 -
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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 appropriation s. 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: Bellflower Boulevard Business Alcohol Licensing Assistance (Chapter 1)
A. Type of Support. This Assistance Program offers the following support to a Business located in Downtown Bellflower:
1. City will process all CUP applications for a Business located south of the 91 Freeway graphically identified in attached Exhibit “B,” which is incorporated by reference, without cost.
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.
3. For applicants with businesses located north of the 91 Freeway, in the Town Center District, as defined by the BMC, the City may grant not more than $4,500 to persons obtaining an Alcoholic Beverage Control (“ABC”) license from the State of California as authorized by a valid Administrative Use Permit issued in - Page 11 of 27 -
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accordance with the BMC.
B. 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 Bellflower Boulevard area (Exhibit “A”).
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: 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 $30,000 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.
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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.
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.
3. Downtown Restaurant Assistance Program for Regulatory Requirements (Chapter 2.3)
a. Grants are available to existing downtown dining
establishments to ensure that otherwise successful
businesses are not prematurely closed for failure to adhere with federal, state, or local regulations as to sales tax. b. Grants under this program are available for not to exceed $20,000 annually, and in no event may grant totals exceed $100,000.
c. Grantees must owe at least $100,000 in sales tax to the California Board of Equalization (“BOE”). Such amount
must be owed by a single entity at a single address, i.e., it cannot be a cumulative amount from multiple dining
establishments or locations. Documents demonstrating
such arrears must be submitted concurrently with the
application and be verified by the Economic Development Director, or designee (collectively, the “Director”).
d. Grantees must have garnered a minimum of $1,000,000 in annual gross revenues during the 12 months before filing its application. Documents demonstrating such sales must - Page 13 of 27 -
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be submitted concurrently with the application and be
verified by the Director.
e. At the time of filing an application with the City, the applicant must demonstrate that it is currently paying sales taxes in accordance with applicable law. Documents
demonstrating such payments must be submitted
concurrently with the application and be verified by the Director.
f. Grant funds provided pursuant to Chapter 2.3 can only be used to service sales tax debt or debt incurred to pay down sales tax debt.
g. The Director may audit grantee’s business operations and accounting practices on a regular basis.
h. The grant will immediately terminate upon grantee’s
suspension or cessation of operations for longer than two weeks.
i. The grant will immediately terminate upon any change of ownership.
j. The grant will immediately terminate if outstanding sales tax debt is satisfied by means other than Chapter 2.3.
k. The grant will immediately terminate if grantee does not stay current with ongoing quarterly sales tax payments or any previously arranged payment schedules with the BOE.
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. Major improvement costs previously incurred by Applicant within the past 12-months before application to the Program may be considered as the Applicant’s match and will be reviewed and approved/disapproved on a case‐ by‐case basis by the Director.
3. Loans will be distributed on a reimbursable basis.
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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 city of Bellflower.
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 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 - Page 15 of 27 -
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PLAN
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:
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
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• 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 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 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. Twenty-Five Thousand dollars ($25,000), 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 - Page 17 of 27 -
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increase the loan cap for Applicants that wish to hire a professional designer. This assistance may be requested for up to $5,000 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.
a.
2. Designated Block Downtown Façade Improvement Program (Chapter 3.2).
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.
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) 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. Major improvement costs previously incurred by Applicant within the past 12 -months before application to the Program may be considered as the Applicant’s match and will be reviewed and approved/disapproved - Page 18 of 27 -
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on a case‐by‐case basis by the Director.
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
• 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. - Page 19 of 27 -
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IX. Assistance Program: Downtown Artisan 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.
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 - Page 20 of 27 -
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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 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 - Page 21 of 27 -
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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.
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, - Page 22 of 27 -
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the following:
• Working Capital
• Equipment/Machinery Purchases
• Inventory Purchases
• Start-up Capital
• Direct Business Expenses
XI. Assistance Program: Chamber of Commerce New Business Welcoming Program (Chapter 6)
A. Type of Support.
This Program offers reimbursement to the Bellflower Chamber of Commerce (“Chamber”) for the cost of each new business’s first year of membership, including a new business Ribbon Cutting Ceremony, planned and executed by Chamber staff. This program is an endeavor by the City, in partnership with the Chamber, to leverage public and private funds in an effort to provide practical resources to the Bellflower business community to encourage economic growth citywide.
Based upon available funding, as determined by the City’s current budget, reimbursement to the Chamber for memberships is available for qualifying business establishments for not more than a maximum one -time amount of $220 for one year of Chamber membership. The reimbursement amount up to a maximum of $220 is based on each business’s number of employees pursuant to the Chamber’s Annual Membership Cost schedule.
B. Additional criteria. In addition to the General Criteria, a business eligible for membership reimbursement must meet the following:
1. Businesses must complete an application for membership with the Chamber.
2. Businesses must be “brick and mortar” businesses. Home-based businesses are not eligible for the program.
3. Businesses must own their business location or have an existing lease with a minimum term of two years. At the time of filing an application for membership with the Chamber, an applicant must provide a draft or executed copy of a lease for the commercial space to be occupied.
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4. Business Reimbursement Payments will be made to the Chamber 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.
5. 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. Businesses must be located within the city of Bellflower.
2. Businesses must have a current City of Bellflower Business License.
3. Businesses must create at least one full-time equivalent (FTE) job, which may include the business owner/operator.
D. Documents demonstrating that businesses meet all program requirements and criteria must be submitted by the Chamber concurrently with the reimbursement request and be verified by the Economic Development Director, or designee (collectively, the “Director”).
E. Reimbursement payments will be made on a monthly basis upon the Director’s confirmation that the grantee is complying with Chapter 6.
F. The Chamber must enter into an operating memorandum with the City to implement Chapter 6 of the Bellflower Business Assistance Plan.
Continuation of Chapter 6 is subject to sufficient funding as appropriated by the City Council.
The City reserves the right to cancel or modify this Program at any time before grant approval, without notice.
XII. Review of Program.
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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.
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EXHIBIT “A”
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EXHIBIT “B”
Artesia Blvd.
Ramona St.
Cedar St.
Rose St.
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91 Freeway
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