Revision 8-26-2015
CITY OF EASTVALE
12363 Limonite Avenue, Suite 910
Eastvale, CA 91752
(951) 361-0900
For City Use Only
Date submitted: ___________
Rec’d by:__________________________
BUSINESS INCENTIVE LOAN POLICY
APPLICATION
BUSINESS INFORMATION
Project Address/Location
Assessor Parcel Number(s)
Description and Purpose of the Business
CONTACT INFORMATION
*The applicant and property owner are considered jointly and severally liable for all project expenses.
Please check the box indicating which address invoices should be sent to.
Property Owner: Applicant:
Name: Name:
Contact: Contact:
Address: Address:
City, Zip: City, Zip:
Phone: Phone:
Fax: Fax:
E-mail E-mail
Check here if additional Property Owner Certifications are attached to this application.
Agent: Other:
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CITY OF EASTVALE Business Incentive Loan Policy Application
Name: Name:
Contact: Contact:
Address: Address:
City, Zip: City, Zip:
Phone: Phone:
Fax: Fax:
E-mail: E-mail:
Agreement and Representations of Applicant and Property Owner
This application is not complete, and processing of this application will not begin, until all initials and signatures are provided:
1) Applicant(s) acknowledge and agree that by making this application, that in the performance of their functions, City staff and it consultants may enter upon the subject property and make examinations and surveys, provided that the entries, examinations and surveys do not unreasonably interfere with the use of the land by those persons lawfully entitled to the possession thereof. _______________(Initial)
2) Applicant(s) certify under penalty of perjury that I am the legal owner(s) (all individual owners must sign as they appear on the deed to the land), Corporate Officer(s) empowered to sign for the corporation, Owner's Legal Agent having power of Attorney (a notarized Power of Attorney document must accompany this application), or the ow ner's authorized representative (include a notarized consent form from the owner). _______________(Initial)
3) Applicant(s) acknowledge and agree that I/we have included all of the required items and understand that missing items may result in delaying the processing of my application. I further acknowledge and agree that by signing this document I accept the posting of public notices regarding the proposed project at the project site, and agree to pay all related costs. _______________(Initial)
4) Applicant(s) agree to defend, indemnify and hold harmless the City of Eastvale (“City”) and its agents, officers, consultants, independent contractors and employees (“City’s Agents”) from any and all claims, actions or proceedings against the City or the C ity’s Agents to attack, set aside, void, or annul an approval by the City, or the City’s Agents concerning the Project (collectively “Claim”). The City shall promptly notify the Applicant of any Claim and the City shall cooperate fully in the defense. If the City fails to promptly notify the Applicant of any Claim of if the City fails to cooperate fully in the defense, the Applicant shall not thereafter be responsible to defend, indemnify, or hold harmless the City.
Nothing in this paragraph shall obligate the City to defend any Claim and the City shall not be required to pay or perform any settlement arising from any such Claim not defended by the City, unless the settlement is approved in writing by the City. Nothing contained in this paragraph shall prohibit the City from independently defending any Claim, and if the City does decide to independently defend a Claim, the City shall bear its own attorney’s fees, expenses of litigation and costs for that independent defense. The Applicant may agree to rei mburse the City for attorney’s fees, expenses of litigation and costs for that independent defense. Should the City decide to independently defend any Claim, the Applicant(s) shall not be required to pay or perform any settlement arising from any such Cla im unless the settlement is approved by the Applicant. _______________(Initial)
6) Applicant(s) acknowledges and agrees that this application sets forth all covenants, promises, conditions and understandings between the parties regarding the advance of Funds and the uses thereof, and there are no promises, conditions or understandings either oral or in writing between the parties other than as set forth herein. No contemporary or subsequent alteration, amendment, change or addition to this application f orm shall be binding upon the City unless reduced to writing and signed by the City Manager or his/her designee. No course of conduct shall be binding upon the 553
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City and waiver of one or more provisions or violations shall not be construed as a course of c onduct to be relied upon and may not be the basis for any expectation of future waiver or estoppel. _______________(Initial)
7) No employee, agent, independent contractor or other representative of the City, other than the City Manager or the City Council, has the authority to alter the terms or effect of this application and Applicant(s) acknowledge and agree that it/they have not relied upon any promises, representations, conditions or understandings other than those set forth in this application. _______________(Initial)
8) This Application shall be a public record. _______________(Initial)
9) This Application is made under, and shall in all respects be interpreted, enforced, and governed by, the laws of the State of California. In the event of a dis pute concerning the terms of this Application, the venue for any legal action shall be with the appropriate court in the County of Sacramento, State of California. Should legal proceedings of any type arise out of this Agreement, the prevailing party shall be entitled to costs, attorney’s fees, and legal expenses, including but not limited to expert fees and costs. _______________(Initial)
IT IS SO AGREED:
Applicant Signature Date
Property Owner Signature Date
Attach additional signatures on a separate sheet.
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BUSINESS INCENTIVE LOAN POLICY
1 I. INTRODUCTION
This written policy is intended as a guide in making credit decisions regarding applications for the Business Incentive Loan Program for the City of Eastvale (City).
This policy is written to allow flexibility as credit needs change. It shou ld be used as a tool to provide consistency for project selection. Projects will be considered for funding on a case -by-case basis, until available funding is exhausted. Only those projects falling within the scope of the guidelines will be considered for funding. Depending on the funding amount, s uccessful applicants will be determined by the City Manager or City Council.
II. PURPOSE
This policy provides financial assistance to support economic development and business retention and expansion goals. The goals are structured to promote Eastvale as a positive place for quality businesses, promote business expansion and attraction to enhance local economic growth, and ensure that government regulations promote a favorable business climate.
This loan program is not to be equated with a loan program available through banking or financial institutions. As a public lender , the source of funds is interested as much in the social benefits as return on investment, and preservation of capital. The return to Eastvale is multiple: increased investment in the business community , job creation, and enhanced business activity, and increased tax revenues and quality of life for our residents.
The purpose of the economic development assistance is to:
1. Reduce Eastvale’s sales tax leakage.
2. Create jobs within the community.
3. Create opportunities for business expansion for existing Eastvale businesses.
4. Create opportunities for recruiting new businesses.
5. Encourage additional foot traffic and social activity within a business location.
6. Diversify the City’s sales tax base.
III. PROHIBITION AGAINST CHANGE IN OWNERSHIP , MANAGEMENT AND
CONTROL OF PARTICIPANT
The qualifi cations and identity of Partici pant in this program are of particular concern to City. It is because of those qualifications and identity that City will enter into an Ag reement with Participant. No voluntary or involuntary successor in interest of Participant shall acquire any rights or powers under this program except as expressly set forth within executed documents under this program. A change in ownership, 555
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2 management and control shall be subject to the approval of City, but such approval shall not be unreasonably withheld.
Participant shall not assign all or any part o f any Agreements or Notes under this program without the prior written approval of City, which appro val shall not be unreasonably withheld.
IV. LOAN FORGIVENESS
Participants in this program will be requi red to remain in operation for a specified amount of time, as outlined in Section V below. In meeting this requirement and compliance with the program , funds loaned will be forgiven at the end of that period.
V. PARTICIPATION PERIOD REQUIRED
The required period of time for program com pliance and fund forgiveness/repayment is contingent upon the amount loaned. The following schedule applies:
Amount of Loan Forgiveness/Operating Period
Up to $100,000. . . . . . . . . . . . . . . . . . . . . . . . ... 7 years
VI. ELIGIBLE BUSINESSES
Proposed sales tax generati ng businesses that are new to Eastvale or existing sales tax genera ting businesses in East vale desiring to expand their gross floor area (square footage) by 50% or more are eligible to apply . Applicants must also be a high-end or upscale restaurant or a premium casual restaurant in order to be eligible.
Eligibility Criteria:
High-end or upscale restaurant or premium casual restaurant providing high - quality food, formal and elevated atmospheres, and wine lists. Examples include, but are n ot limited to, Fleming’s Prime Steakhouse, McCormick and Schmick’s, The Wate r Grill , Jinya Ramen Bar, and Bush fire Kitchen . These businesses should also include sit -down services and serve customers with cloth napkins and metal utensils.
City s hall determine, i n its sole discreti on, whether a business would be a f ine dining restaurant or premium casual restaurant.
VII. ELIGIBLE ACTIVITIES
Within these categories funding can be used for the following types of activities:
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3 • Purchase of business equipment, furniture, and fixtures • Working Capital
Interior and/or exterior leasehold improvements and construction/renovation activities are ineligible expenses. The applicant is responsible for determining whether their use of the loan funds requires the payment of prevailing wages. If prevailing wages must be paid, the applicant must fulfill all applicable prevailing wage requirements.
VIII. APPLICATION REQUIRED DOCUMENTS AND RATING
Prior to applying, applicants are encouraged to contact the City ’s Economic Development Manager at [email protected] to discuss interest in applying to the Loan Program. All 16 of the fol lowing application materials must be submitted electronically to
[email protected]:
1. Application Cover Sheet
2. IRS Tax Return Verification Form (IRS Form 2)
3. Detailed proposal of use of requested funds
4. List of available collateral, including any to be purchased with loan proceeds
5. Month-to-month projections covering any interim period until year end plus one full fiscal year including the assumptions that the projects were based upon
6. Resume/CV for all business owners/managers
7. Current personal financial statement for each business owner
8. Business data and history
9. Complete Business Plan
10. Fictitious Name Statement (filing and proof of publication)
11. Articles of Incorporation OR Partnership Agreement, Limited Liability Company Article of Organization
12. Fiscal year end business financia l statements for prior three years (if available)
13. Interim business financial statement within 60 days of application date
14. Business federal tax returns for the prior three years to include all supporting schedules and statements (if available)
15. Copy of current/proposed lease on business premises including assessor’s parcel number
16. Personal federal tax returns for the prior three year s to include all supporting schedules and statements, for each business owner 557
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4 Given the limited amount of funding a vailable annually, loan proposals submi tted by applicants will be reviewed and graded. Eligible applicants’ loan proposals will be evaluated using the following rating system:
1. Reduce sales leakage in Eastvale and generate increased sales tax for the City.
2. Encourage additional foot traffic and social activity within t he proposed business location.
3. The risk determination analysis (see Section XIII).
4. Proposed use of the funds (responsible and appropriate)
Category Points Available
Reducing sales tax leakage and
generate increased sales tax for the
City
25 Encourage add itional foot traffic and
social activity within the proposed
business location
25 Risk determination analysis 25
Proposed use of funds 25
TOTAL 100
Funding decisions will be made based on the rating of the proposal and the availability of funding. The date of sub mission of a proposal as compared to other submissions is not a factor (e.g., funding is not “first-come, first-served”).
IX. ADMINISTRATION
A. Loan Committee
In order to ensure timely review of applications, a business incentive loan committee will be organized. The Committee will be co mprised of the Ci ty Manager, Community Development Dir ector, Economic Development Manager , and Finance Director (Program Administrator). The Committee will meet as needed to review the applications and recommend approval or den ial based upon the rat ing system in section VIII of th is policy . The C ommittee will also review and recommend approval or denial of requests from approved borrowers for payment deferrals, substitution or release of collatera l, waiver or release of covenants, and amendments to loan documents.
B. Program Administrator
The F inance Director wi ll serve as the Program Administrator. The Pro gram Administrator will market, solicit, review, and process potential borrowers’ 558
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5 applications for credit. The Program Administrator w ill decli ne o r refer out to some oth er agency any applicant who clearly does not qualify under eligibility standards as set forth by the policy. The Program Administrator will recommend new credit, payment defe rrals, release or substitution of collateral, waivers/amendments to loan covenants and exceptions to loan policy to the Loan Committee.
X. LOAN APPROVAL
Regardless of the amount of the loan, all loans must be approved by the City Council.
XI. FUNDING AVAILABILITY
The business incentive loan program is funded on a fiscal year basis. The City of Eastvale’s fiscal year begins on July 1st and ends on June 30th of the f ollowing calendar year. Limited funds are available in each fiscal year when the program is funded.
XII. APPLICATION PERIOD
A. Submittal
Applications will be accepted on a continuous basis until the City Council decides to terminate the program.
B. Processing
Applications will be processed when funds are available. The City has no obligation to process applications if all available funding has been exhausted.
XIII. RISK ASSESSMENT
All loans are subject to analysis to determine risk. Loans will be awarded only to projects, which demonstrate that the servi ce provided is commensurate with the risks incu rred. In return for the public funds provided, the businesses will generate incr eased investment, jobs, business activity, and t hus increased tax revenues.
A. General Credit Criteria
The business loan applications will be analyzed for the following crite ria, based on criteria specified by the U.S. Department of Housing and Urban Development, 559
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6 Office of Community Planning and Develop ment, and by the Smal l Business Administration:
1) Ability to repay in case of default or termination of business.
2) Balance Sheet Analysis
Balance sheet must be sound before the loan is made.
3) Historical earni ngs and cash flow records, from verifiable sourc es as determined by t he loan committee, to ensu re sufficient repayment of all requested credit, and to provide the owner(s) wi th a reasonable level of personal income to satisfy personal obligatio ns. Typical ly, a borro wer will have been profitable during the most recently com pleted year a nd will maintain a cash flow coverage ratio o f 1:1 (defined as earnings before debt service, interest and taxes divided by debt service), with sufficient collater al.
The ratio would be 2:1 without collateral. If partial collateral is pledged , the ratio may be prorated downward.
4) Collateral
Collateral, when available in any form, may be request ed by the Loan Committee. Collateral will be pledged commensurate with the amount of requested credit, as well as a security inter est in newly purchase d assets, or those purchased with loan funds. If the pro ject cannot repay the loan from cash flow, the C ity will collect payment by liquidating the asset and satisfying the s pecific lien securing the property. A letter of credit or b ond may be accepted in lieu of collateral.
5) Commitment
Personal and corporate guarantees may be required. The borrower should sign personally for the loan.
6) Management Experience
The management t eam must hav e experienc e in all areas of running the business: sales, finance, o perations, personnel, etc. The management team includes the principals, directors, senior management, and consultants.
The management team should have direct experience in t hese areas or have comparable business skills which can be transferred.
7) Business Plan
The business plan wi ll help identify worthy ventures . T he monthly cash flow statement for the first year is especially important.
8) Character
The owners and management s hould have f avorable cr edit histories, a reputation for trea ting customers fairly , no bankrupt cy in the pas t five years, 560
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7 and a clean crimin al r ecord. Good character will be determine d by credit reports, payment history with verified vendors, personal inte rview, or ot her means as determined.
All of the above cri teria are important, and the absence of any one item may be sufficient to deny a loan request.
B. Undesirable Credit Applications/Borrowers/Guarantors
Using the guidelines for the Small Business A dministration and the D epartment of Housing and Urban Develo pment, the following are undesirab le without mitigating circumstances acceptable to the Loan Committee:
1) Applications for fundin g th at w ould substantially reduce the amount of non-Federal support for the acti vity available in other recognized, reasonable loan programs available in the target areas;
2) Requests for credit to repay existing creditors
3) Funds used to repay debt to applic ant owner(s), partners, and stockholders
4) Requests for funding from new start-up businesses not associated with a franchise chain or not adding an additional business location
5) Requests for funding for businesses which d o not meet the criteria specified in Section VIII A through C.
6) Non-profit organizations, as designated by Charter/Bylaws, unless designated as approved Community B ased Development Orga nizations (CBDO)
7) Lack of profitable operations, as demonstrated by sources acceptable to Loan Committee
8) Loans to restricted membership or discriminatory groups/organizations.
9) Loans to uses with complete access restrictions based on age.
10) Lack of sufficient equity/highly leveraged situations as determined by Loan Committee.
11) Personal or business bankruptcy, o r prior business failure without sufficient, documented information to mitigate, as determined by Loan Committee;
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8 12) Poor personal or business credit a s evidenced b y many derogatory items including public record ite ms, tax liens, judgments, or excessive exis ting credit as determined by Loan Committee;
13) Undocumented aliens;
14) Felony convi ctions, dis honorable discharge or “Bad Conduct” discharge from military service (each situation will be independently evaluated);
15) Business active in any unlawful activity.
C. Exceptions to Loan Policy
If a project does not fall within the guide lines listed above, but is of such special character and wil l complement the area in which loc ation is proposed, the City Manager or City Council (depending on loan amount) may consider th e project for funding.
XIV. PRICING AND TERMS
Considerations of loan product pricing extended to borrowers will be based on a rate equal to the average rate earned b y the City’s investment in the California Local Agency Investment Fund (LAIF) or the current p rime rate for the fiscal year prior to the issuance of the loan (LAIF’s Annual R eturns: https://www.treasurer.ca.gov/pmia- laif/historical/annual.asp), but in no even t to exceed 1 0 per cen t (1 0%) per annum.
Interest which accrues and is unpaid sha ll be added to principal on a monthly basis and thereafter b ear interest as if it were part of principal. Principal and all accrued and unpaid interest shall be due and paya ble not later than the terms specified in the Note.
Additional terms extended to borrowers will be based on the amount of risk involved.
XV. COLLATERAL
Collateral i s a mandatory requirement, real property preferred but not required .
Property such as equipme nt w ill be con sidered as c ollateral. It is intended that any available collateral from the bor rower and/or guarantor(s) will be required, as w ell as a first lien p osition on an y a ssets purchased with any loan funds. Junior liens on re al property will be required at the discretion of the Loan Committee. However, it will be the policy that all collateral required for loan approval will be of mat erial value. Caution will be used whenever taking a junior lien position on collateral w here there is a substantial senior lien. It wil l be a determination of the Loan Committee whether to waive a collateral position when available.
Titled motor vehicl es, when take n as col lateral, must show the City as mortgagee/lienholder on the certific ate of title, and held in safekeeping by the Finance Director or designee.
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9 In all cases, a UCC -1 and secu rity agreement will be taken against all business assets.
XVI. CESSATION OF BUSINESS
If Particip ant should cease business at the site, participant shal l re pay its obligations to City as provided in the Note which shall be executed when Agreement is signed. The term “ce ase business” shall mean when the site is no lon ger used as th e principal place of business for Participant’s business. Participant shal l give City written notice not less than thirty (30) days prior to cessation of business. If Participant s hould cease business at the site, Participant shall pay to t he City, in ca sh, within fifteen ( 15) days of the Participant’s receipt of written notifi cation from the City of th e balance due on the Note. If the Participant moves the business to a new location within Eastvale the City may elect to not treat this relocation as a cessation of business.
XVII. GUARANTORS
The City will generally follow the rules of the Small Business Administration as to qualification of guarantors:
A. Active Management with any ownership equity in borrower must guaranty
B. Shareholders/owners of 20% or more eq uity in borrower mus t g uaranty regardless of active involvement in management
Guarantees may be secu red or unsecu red as d etermined by the Loan Committee.
XVIII. PROBLEM CREDITS
While it is the inten t of this p olicy to be sensitive to the borrower’s financial needs, a nd the intent to match any repayment schedule to the borrower’s abil ity to repay, it is inevitable that there will be delinquencies and defaults. It is the responsibility of the Program Administrator to monitor all loan payments, especially those t hat are in arrears. It will be the stated policy that upon determination of a “problem credit” the City will purs ue any a nd a ll remedies allo wed by Regulation or Law in a profession al, aggressive, and consistent manner until resolution is reached.
XIX. ACTION OCCURRENCES
The following occurrences will warrant action on the part of the Program Administrator and/or City Council.
A. Delinquent payment – whenever the terms of the Promissory Note are not being met in a timely manner (delinquent by more than 30 days); 563
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10 B. Violation of Loan Covenants – whenever the terms of the Loan Agreement are not being met in a ti mely fash ion. The se verity and immediacy of action is dependent on the type of breach; s ome covenan ts are more serious and l ead to a def ault, while others less severe can sometimes be tolerated at the discretion of the Program Administrator.
C. Receipt of bankruptcy notice;
D. Filing of a “Notice of Default” by another lienholder on real property;
E. Legal Service, such as Writs of Attachment, Tax Liens, Subpoenas for records;
F. Death of debtor or guarantor;
G. Notice of significant legal action against borrower/guarantor;
H. Returned mail from borrower’s address by Post Office;
I. “Skip Trace” inquiry from another creditor.
XX. COLLECTION ACTION
It is im portant to be clear a nd specific a bout any breach of the Note, Loan Agreement, or any of the above-mentioned occurrences. The c ircumstances of a particular situation will often dictate the method to use in t aking corrective action.
Telephone contact with the borrower/guarantor is the most expedient and cost effective; however, some cases dem and more formal notificati on s uch as “D emand Le tters”, Legal Action, and Foreclosure. Personal site visits and conversations with the borrower are warranted at the discretion of the Program Administrator.
XXI. NON-ACCRUAL LOAN STATUS
Credits will be moved to a n on-accrual status at t he 9 0-day del inquency point unless otherwise directed by the City Council. At this point, many of the aforementioned “Action Steps” sho uld have been star ted; a collectio n plan, if applicable, should be in process at this point. Rewriting the entire Note in an ef fort to prov ide relief to the borrower should be considered after a detailed analysis of the financial condition of the borrower and his/her prospects for timely payments in the future. In any case, the City Manager or the City Council must approve a re-structured Note, depending on the dollar value of the re-structured Note.
XXII. COLLATERAL APPRAISALS
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11 Collateral taken as security for any type of credit should be appraised if it has any significant value. In most cases, rea l property will be the col lateral that is most needed for a third-party appraisal (the City will accept “drive-by” and short -form appraisals).
Since the City is n ot under the scrutiny of Federal and State Banking Regulators, there is more flexibility as t o the extent of any apprai sal and in which circumstances. It is the stated policy that some form of va luation be u sed to determine the equity of any collateral ta ken by the City, reme mbering that the cost and time of obtaining such appraisals may have an adverse affect on the borr ower considering the size of the credit involved. The Loan Committee shall u se its discr etion in al l collateral matters, unless otherwise dictated by the City Council.
XXIII. FINANCIAL INFORMATION
It will be the policy of th e City to require financial statements from each applicant in the form of a balance sheet and income st atement for any and all fiscal year -ends since inception of the business (up to 3 years), and within the past 90 days of application date. Current perso nal financial statements f or e ach business owne r and personal and business federal tax returns for the prior three years are r equired, including all supporting sch edules and statements . The City w ill obtain the written permission of the applicant to verif y any and all tax returns with the Internal Revenue Service for accuracy (IRS Form 4506). Month -to-month projections covering any interim period until year -end, p lus one full fiscal y ear is requir ed, including the assumptions that the projections were bas ed u pon. Additional infor mation wi ll be requested at the discretion of the Program Administrator with direction from the Loan Committee and/or City Council.
All borrowers may be req uired in the Loan Agreement to provide financial information when requested by the Loan Committee and/or City Council:
A. Fiscal Year End balance sheet and income statement.
B. More frequent statements such as Accounts Receivable Agings, work in progress reports, or any other documents requested by the Loan Committee to assist the borrower in the monitoring of the credit.
C. Payroll reports showing employee status.
XXIV. FINANCIAL INQUIRIES
The City will not provide responses to inquiries regarding credit status of program participants. The financial i nformation provided by app licants for the City w ill be kept confidential to the extent permitted by law.
XXV. INSURANCE
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12 All collateral taken as security for any credit m ust be insured approp riately as determined by the Loan Committee; ev idence of that coverage must be provided showing the City as “Addition al In sured,” “Loss Payee,” or “Mortgagee,” whichever is appropriate for the collateral insur ed. The lapse of any insu rance will create a d efault on the Loan Agreement, and must be remed ied immediately by the borrower. If necessary, the City will obtain a ppropriate insurance to protect its collateral and debit the premium to the borrower.
Additionally, in the case whe re real estate collat eral is taken, a Policy of I nsurance Record Title (PIRT) of short form title po licy will be requ ired. 566
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TABLE OF CONTENTS
I. INTRODUCTION ______________________________________________________ 1 II. PURPOSE ______________________________________________________________1 III. PROHIBITION AGAINST CHANGE IN OWNERSHIP, MANAGEMENT AND CONTROL OF PARTICIPANT____________________________________________ 1 IV. PARTICIPATION PERIOD REQUIRED ____________________________________ 2 V. ELIGIBLE BUSINESSES ________________________________________________ 2 VI. ELIGIBLE ACTIVITIES _________________________________________________ 2 VII. APPLICATION REQUIRED DOCUMENTS AND RATING ____________________ 3 VIII. ADMINISTRATION ____________________________________________________ 4 IX. LOAN APPROVAL ____________________________________________________ 5 X. FUNDING AVAILABILITY ______________________________________________ 5 XI. APPLICATION PERIOD _________________________________________________ 5 XII. RISK ASSESSMENT ____________________________________________________ 5 XIII. PRICING AND TERMS__________________________________________________ 8 XIV. COLLATERAL ________________________________________________________ 8 XV. CESSATION OF BUSINESS _____________________________________________ 9 XVI. GUARANTORS ________________________________________________________ 9 XVII. PROBLEM CREDITS ___________________________________________________ 9 XVIII. ACTION OCCURRENCES _______________________________________________ 9 XIX. COLLECTION ACTION ________________________________________________ 10 XX. NON-ACCRUAL LOAN STATUS ________________________________________ 10 XXI. COLLATERAL APPRAISALS ___________________________________________ 10 XXII. FINANCIAL INFORMATION REQUIRED _________________________________ 11 XXIII. FINANCIAL INQUIRIES _______________________________________________ 11 XXIV. INSURANCE _________________________________________________________ 11
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AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.2
September 27, 2023
Quarterly Economic Development Updates
Prepared By:
Alexander Fung, Economic Development Manager
Recommended Action(s)
Staff recommends that the City Council receive-and-file the presentation.
Summary
The City of Eastvale’s Economic Development Team strives to elevate the quality of life in Eastvale through business a$rac%on and reten%on and workforce development efforts. Based on the goals and priori%es that were approved by the City Council in the City’s Strategic Plan, staff aims to diversify the City’s revenue streams, create value-added development, and elevate the dining and shopping experience in Eastvale. Staff desires to provide the City Council with updates regarding the City’s economic development efforts for the past several months.
Background
Business Attraction and Retention
The Economic Development Team diligently supports the Community Development Department to search for a Master Developer that can assist with comple%ng Downtown Eastvale’s Commercial Core. Addi%onally, staff con%nues to hold mee%ngs with retailers, restaurants, eateries, entertainment businesses, and en%%es that have expressed interest in opening in Downtown 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
eastvaleca.gov
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Eastvale. As of September 2023, 41 businesses submi$ed formal le$ers expressing interest in Downtown Eastvale. The City’s economic development website, https://eastvaleelevates.com/
,
includes a form for interested businesses to input their space requirements, co-tenancy requirements, and leasing requirements.
Furthermore, the Economic Development Team con%nues to hold mee%ngs with businesses that are interested in opening in Eastvale’s shopping centers. Staff proudly operates a “Concierge Service” for Eastvale’s businesses on the “Eastvale Elevates” website. Businesses that submit an inquiry on the website at
https://eastvaleelevates.com/new-business-concierge-service/ will receive a
response from staff within a few business days. This one-stop shop is meant to connect businesses with the appropriate resources and assist businesses to navigate the steps to start, manage, and grow their operations.
Business Resource Guide
In Spring 2023, the Economic Development Team unveiled the first “Eastvale Business Resource Guide.” The Guide outlines various public, private, and nonprofit business resource partner agencies and informs the business community about resources, programs, and events. Informa%on on grant and loan opportuni%es, u%lity rebates, mentorship opportuni%es, workshops, events, training opportuni%es, and entrepreneurship courses are included. The Guide is updated every quarter and can be found on
https://eastvaleelevates.com/find-business-resources/
.
Community Outreach & Engagement
Staff ac%vely maintains and disseminates outreach content through the City’s economic development website, social media accounts, and newsle$er. These channels allow staff to share the latest informa%on, available resources, and funding opportuni%es for Eastvale’s residents and businesses. In partnership with the City’s Communica%ons Team, an episode on Downtown Eastvale and economic development efforts was released on the City’s “Good Morning Eastvale” Podcast on September 1, 2023.
Staff also maintains a close partnership with the Eastvale Chamber of Commerce. In addi%on to hos%ng quarterly mee%ngs with the Chamber’s President, staff ac%vely a$ends the Chamber’s monthly mixer and networking events. The Chamber serves as a vital partner who greatly supports the City’s community events.
ICSC Conferences
The 2023 Interna%onal Council of Shopping Centers (ICSC) Las Vegas Conference that occurred in May 2023 led to numerous produc%ve and promising conversa%ons with regards to a$rac%ng businesses’ interest in Downtown Eastvale. Based on past experiences, it is evident that ICSC conferences are excellent opportuni%es for the City to market available retail opportuni%es and network with brokers, developers, and businesses. Staff is in the process of preparing for the 2023 ICSC Western Conference in San Diego that is scheduled for October 25, 2023 to October 27, 2023. “Love Eastvale, Shop Eastvale” Shop Local Campaign
The City’s Economic Development Team previously launched the “Love Eastvale, Shop Eastvale” Campaign in 2020 during the COVID-19 Pandemic to encourage residents to support local 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752
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businesses. The successful campaign took a hiatus as the Pandemic receded. This year, the City restarted the campaign to generate additional enthusiasm for residents to continue shopping locally.
Star%ng on August 14, 2023, residents or visitors who complete the following ac%ons can receive a free “Love Eastvale, Shop Eastvale” gift bag at the Eastvale City Hall:
1 .
Take a picture with a local small business and share the picture on social media. 2 .
Follow the City of Eastvale’s Facebook and/or Instagram account, including “Love Eastvale, Shop Eastvale” social media accounts;
3 .
Subscribe to the City of Eastvale’s newsletter; and
4 .
Share a receipt of spending at least $50 in Eastvale after August 14, 2023.
Those who receive giF bags will also have the op%on of entering into an opportunity drawing to receive giF cards. The giF cards were previously donated by the Eastvale Chamber of Commerce.
Staff created 500 gift bags in preparation of this campaign.
Monthly Business Walks
The City’s Economic Development Team proudly launched the Monthly Business Walks in March 2023 to build a deeper rela%onship with local businesses, with the aim of visi%ng every business in Eastvale’s shopping centers at least twice a year. Each visit includes a city staff dropping off small giFs and resource packets and speaking with the business’ manager or supervisor about opera%onal strengths and challenges. Staff is pleased to report that the Economic Development Team has already visited all of Eastvale’s businesses at least once this year.
Shopping Center Success Roundtable
In April 2023, the City’s Economic Development Team combined a Property Managers’ Task Force and the Property Lessors’ Task Force to form the Eastvale Shopping Center Success Roundtable. The Roundtable convenes on a quarterly basis and focuses on discussing commercial property management challenges and brainstorming collec%ve solu%ons. Commercial property managers and lessors from Eastvale’s shopping centers are invited to participate in these meetings.
The previous mee%ng was held virtually on June 5, 2023 and featured presenta%ons on marke%ng tac%cs for leasing retail and commercial spaces, the City’s Business Resource Guide, Zoning Code updates, and shopping center security enhancement recommendations.
Staffing Updates
Based on the FY 2023-2024 approved budget, the City’s Economic Development Team recruited a new full-%me Management Assistant to assist with economic development and workforce development projects. The Management Assistant is a new entry-level classifica%on in which the individual in that posi%on develops and evolves into full management level work over %me. The Management Assistant will be suppor%ng the Economic Development Team to conduct community outreach activities, review data analyses, and provide grant writing support.
Environmental
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Pursuant to Sec%on 15378 of the California Environmental Quality Act (CEQA) Guidelines, organiza%onal or administra%ve ac%vi%es of governments that do not result in direct or indirect physical changes in the environment are not considered as CEQA projects.
Strategic Plan Action - Priority Level: 1
| Target #: B
| Goal #: A
The City’s Economic Development Team supports efforts to a$ract and retain businesses in Eastvale.
Fiscal Impact
Funds to implement the City’s economic development efforts are budgeted within the Community Development Department in the General Fund. Staff ac%vely con%nues to search for relatable grant funding to support additional economic development efforts.
Prior City Council/Commission Action
The City Council receives quarterly economic development updates during City Council mee%ngs.
The previous update was provided on May 24, 2023. The Planning Commission also received economic development updates from city staff on April 19, 2023.
Attachment(s)
Not Applicable.
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AGENDA STAFF REPORT
City Council Meeting
CITY COUNCIL BUSINESS
Agenda Item No. 13.3
September 27, 2023
Citywide Branding - Entryway Monument and Median
Improvements
Prepared By:
Jimmy Chung, Public Works Director/City Engineer
Recommended Action(s)
Staff recommends that the City Council receive the presenta on on the update to the Eastvale Entryway Masterplan and provide feedback on the options for monument signs.
Summary
The City is upda ng its Entryway Masterplan. The goal of the update is to establish citywide branding at entryways and roadway medians. Branding in the form of monuments will iden fy Eastvale as people walk, ride or bike throughout the City. The monuments will also demarcate Eastvale boundaries from neighboring jurisdic ons. This unique branding that will draw visitors to Eastvale. This project will establish and contribute to "Des na on Eastvale" via the Strategic Plan adopted by the City Council. Over the past months, staff worked closely with a design consultant to develop several concepts that best reflect the city.
Background
The Eastvale Entryway Masterplan iden fies entryway monument loca ons and design throughout the City. These locations and corresponding concept designs are identified in three categories:
1) Major entry monument,
2) Minor entry monument, and
3) Median monument.
The original concepts in the masterplan adopted in 2013 show a more formal style of signage 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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typically reflected in municipal gateways, incorpora ng the City's color as used in the City’s logo.
Some of the monuments following this design guideline were installed at Limonite Avenue east of Hellman Avenue within the "The Ranch" and at the corner of Hamner Avenue and Bellegrave Avenue near the Goodman Commerce Center. However, the original concepts are outdated and a fresh approach is needed.
Consistent with the City's Strategic Plan priority goals to create "Des na on Eastvale" (Target #B, Goal #B) and develop branding and iden ty for Eastvale (Target #2, Goal #4), staff sought out several proposals from crea ve signs and branding consultants. Two consultants submiBed a proposal for design services. ACer in-depth reviews by staff, Nelson was determined to be the ideal candidate to provide this service. Nelson is an award-winning firm whose services transform environments with the strategy of work, serve, play, and thrive. Nelson has a diverse porFolio of work and integrated skill sets aiming to bring vision to life.
The mission of this branding project is to showcase the crea ve endpoint of Eastvale's elevated image. These new monument designs provide a refreshed iden ty and branding for the community where special and festive events can be celebrated. The new monuments also feature an internal ligh ng system that can be programmed to coordinate with seasonal holidays which means they will be discernible during the day and night.
ACer much collabora ve and crea ve discussion between the consultant and staff, three concepts were created for considera on. The graphic design renderings provided by Nelson includes design and development of three concepts approached with four different sign types based upon the selected visual positions. The four different sign types are:
1. Major entry points for major corridors with large space for a monument
2. Minor entry points for City's entry point with limited monument space in the public right of way
3. Median entry points; and
4. I-15 freeway on/off ramp
The following is a list of proposed options for consideration:
Concept 1
A gradient geometric block letter font with linear features.
Concept 2
A modern and dimensional cursive steel frame.
Concept 3
A combination of wooden textiles forming a contrasting cursive font.
Environmental
Pursuant to Sec on 15378 of the CEQA Guidelines, the item is not considered a project, thus, no environmental review is required.
Strategic Plan Action - Priority Level: 1
| Target #: B
| Goal #: B
Create "Des na on Eastvale" with high quality and unique businesses. Simultaneously, develop 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 |
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branding and iden ty for Eastvale resul ng in local and regional pull. In conjunc on with the inclusionary target of developing strategies for the arts in public spaces.
Fiscal Impact
The discussion item does not have a fiscal impact.
The Public Works Division has sufficient amount
budgeted in FY23/24 for this service under Citywide Branding Project #94010 in the Measure A Fund, account 210-510-6660-94010.
Prior City Council/Commission Action
City Council approved the objec ve and service agreement between the City and Nelson for graphic design and branding services on March 23, 2022.
One September 20, 2023, the Planning Commission provided feedback on the concepts.
Attachment(s)
Attachment 1 - Monument Concepts prepared by Nelson
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EASTVALE MONUMENT SIGNAGE
CONCEPT REVISION
09 07 2022
575
WHAT WE HEARD
• Move forward with previous concept 1& 3
• Spell out eastvale in full
• Keep the scale
576
CONCEPT 1
Revised
577
CONCEPT 1 | VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 4 578
CONCEPT 1 | VIEW 2
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 5 579
CONCEPT 1 | VIEW 3
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 6 580
CONCEPT 1 | NIGHT VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 7 581
CONCEPT 1 | NIGHT VIEW 2
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 8 582
CONCEPT 1 | BIRDS EYE VIEW
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 9 583
CONCEPT 1 | ELEVATION
PLAN VIEW
ELEVATION | Overall Dimensions (9' H x 50' L x 4' D)
PATTERN & DEPTH
VARIES BY LETTER
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 10 584
CONCEPT 2A
Revised
585
CONCEPT 2A | VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 12 586
CONCEPT 2A | VIEW 2
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 13 587
CONCEPT 2A | VIEW 3
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 14 588
CONCEPT 2A | NIGHT VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 15 589
CONCEPT 2A | BIRDS EYE VIEW
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 16 590
CONCEPT 2A | ELEVATION
PLAN VIEW
ELEVATION | Overall Dimensions (10' H x 44' L x 10' D)
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 17 591
CONCEPT 2B
Revised
592
CONCEPT 2B | VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 19 593
CONCEPT 2B | VIEW 2
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 20 594
CONCEPT 2B | VIEW 3
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 21 595
CONCEPT 2B | NIGHT VIEW 1
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 22 596
CONCEPT 2B | BIRDS EYE VIEW
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 23 597
CONCEPT 2B | ELEVATION
PLAN VIEW
ELEVATION | Overall Dimensions (10' H x 44' L x 12' D)
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 24 598
COMPARISON
599
CONCEPT COMPARISON
CONCEPT 1 CONCEPT 2A CONCEPT 2B
EASTVALE MONUMENT SIGNAGE CONCEPT REVISION SEPTEMBER 07 2022 26 600
APPENDIX
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THANK YOU
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