TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
MARCH 19, 2024
GENDA REPORT
SUBJECT: UPDATE TO OLD TOWN FACADE IMPROVEMENT PROGRAM
FISCAL
IMPACT: CDBG FUNDS NOT -TO -EXCEED $180,778 FOR FISCAL YEAR 2024-25
NO GENERAL FUND MONEY WILL BE USED FOR THIS PROGRAM
SUMMARY:
On December 5, 2017, City Council approved the OId Town Facade Improvement Program (Program) in an effort to remove blight and provide for the expansion of the City's tax base through the use of CDBG funds for eligible facade improvements to local businesses. The funds will are designed to be used for exterior improvements among the aging commercial buildings located within the Old Town Placentia District (Old Town Placentia). The Program is designed to promote Placentia as a positive venue for quality business, incentivize business improvements and attraction to enhance local economic growth, and ensure that government regulations promote a favorable business climate.
On March 5, 2024, as part of the Fiscal Year (FY) 2024-25 Budget, the City Council earmarked $180,778 in Community Development Block Grant Funds (CDBG) towards a grant program designed for facade improvement for businesses located within Old Town Placentia.
The recommended action is to approve the revised Old Town Facade Improvement Program Guidelines and Application which updates insurance requirements, grant award amount to be determined by funding availability and prioritizes properties or areas that historically have been targeted for graffiti and/or are prone to blight.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Improve City Beautification, under Objective #6.3, which is to allocate more funding for facade improvement projects within eligible census tracts.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the revised OId Town Facade Improvement Program Guidelines and Application; and
1 .J.
March 19, 2024
City Council Agenda
March 19, 2024
2. Authorize the City Administrator to execute all necessary documents, in a form approved by the City Attorney.
DISCUSSION:
The Federal Housing and Community Development Act of 1974 provides CDBG funds for projects that promote the development of viable urban communities by providing suitable living environments. One such eligible project is the Facade Improvement Program. This Program provides funding assistance to business owners to prevent or eliminate blight in the community.
Program Overview
On December 5, 2017, City Council approved the Old Town Facade Improvement Program in an effort to remove blight and provide for the expansion of the City's tax base through the use of CDBG funds for eligible facade improvements to local businesses. The Program is intended to create a pedestrian -friendly, aesthetically pleasing environment for residents, visitors, and tourists, and create substantial economic benefits for merchants and property owners as a result of increased investment in this area. The approved projects shall promote retail activities, create an attractive environment, encourage neighborhood character and architectural design, use quality materials, and incorporate good design concepts.
Since its inception, the Program has been highly successful in improving key properties within Old Town. It has deterred graffiti in many instances and enhanced the appearance of businesses through upgrades such as wall murals, exterior facade treatments, awning replacements, and updated exterior signage. These properties include murals at 301 Cafe, Broken Timbers Brewing Company, and the Zepeda Family Living Trust building located at 141 West Santa Fe Avenue.
Additional facade improvements include the buildings of Tlaquepaque Restaurant and Better Floors and Restorations. However, due to updated legal requirements and knowledge gained, Staff is proposing a variety of updates to the original Old Town Facade Improvement Program Guidelines and Application.
Under Section I.0 - Program Requirements, the maximum grant amount is revised from the initial $10,000 per property/business owner(s) to an amount to be determined based upon funding availability and existing conditions of the properties or areas that historically have been targeted for graffiti and/or are prone to blight. In addition, the applicant shall pay up to 50% of the cost which will allow the City to fund more facade improvement projects. Continuing in this section, Staff is proposing the initial six-month project timeline to be extended to a one-year period if structural issues or other conditions are discovered during the course of construction.
Secondly, under Section IV.A.2 - Review of Application, the Facade Improvement Program Committee is modernized to reflect the new City Council Housing, Community and Economic Development Committee; new position title of our Deputy Director of Administrative Services; and the addition of our new Senior Management Analyst - Economic Development.
Next, Under Section IV.C.2 - Contractor Requirements, the City's Risk Management has reviewed the initial agreement and provided updated insurance requirements. This includes a new scope
City Council Agenda
March 19, 2024
of insurance coverages and subcontractor requirements which must be submitted and maintained by the City for all facade projects.
Lastly, under the Facade Improvement Program Grant Agreement, the reimbursement amount is being revised from the initial $10,000 to an amount determined by funding availability and existing conditions of the properties or areas that historically have been targeted for graffiti and/or are prone to blight.
A property owner(s) and/or business owner(s) may submit an application for properties located in the OId Town Placentia project boundary area described in Attachment 2. Storefronts must be visible from Santa Fe Avenue or Bradford Avenue. All applications will be reviewed by the Facade Improvement Program Committee (Committee) which will consist of two (2) members of the City Council Housing, Community and Economic Development Committee, City Administrator, Director of Development Services, Deputy Director of Administrative Services, and Senior Management Analyst - Economic Development. The Committee will use the Scoring Criteria (see Attachment 2) to award applicants based on grant funding availability with a priority for properties or areas that historically have been targeted for graffiti and/or are prone to blight. Applicants that are not selected in the first round will be encouraged to apply for the next round of funding.
The following businesses/entities are not eligible to receive Program assistance: residential, residential rental buildings (apartments, unless connected to mixed-use building), home-based businesses, structures not facing the public right-of-way, churches, and other religious institutions.
Program Priority
The following criteria will be considered as a basis of assigning priority to applications:
1) Properties or areas that historically have been targeted for graffiti and/or are prone to blight.
2) Projects that provided significant value to OId Town or Placentia Metrolink Station. 3) Properties or areas adjacent to new public facilities such as the Parking Structure. 4) Projects that involve a historical restoration/renovation of a building. 5) Properties facing Santa Fe Avenue and/or Bradford Avenue.
Eligible Improvements
Examples of grant -eligible improvements include the following:
• Murals, if they are professionally done and provide an important aesthetic improvement and/or improve an expanse of wall or surface prone to graffiti • Historic building restoration (removal of non -historic materials or additions such as stucco and exposing original masonry/brick)
• Exterior facade treatments (stucco, brick veneer, paint removal, etc.) • Colonnade replacement with awning, canopy, or other shade solution • Exterior painting of buildings visible from public right-of-way • Facade/brick cleaning
• Signage repair or replacement
• Exterior doors
• Window and window frame replacement
City Council Agenda
March 19, 2024
Page4of6
• Exterior lighting and electrical work
• Landscaping related to exterior features
• Permanent exterior signage
Ineligible Improvements
The following improvements are ineligible under this program:
• Any improvements not visible from the public right-of-way or publicly owned space • Parking lot resurfacing
• Non-visible mechanical equipment screening
• Interior improvements/remodeling
• Temporary, portable, or non -permanent improvements
• New construction
• Business operations -related costs
• Property acquisition, debt refinancing, expansion of building area, or conversion of building use
• Normal maintenance and repair
• HVAC repair/improvements
• Plumbing repairs/improvements
Application Process
The application process, designed to be user-friendly and time -efficient, includes the following:
1. Pre -Application Meeting — Applicants are encouraged to meet with Staff before submitting an application to review the project and process.
2. Submit Complete Application — Applicants must complete the application form and supply the requested materials, including contractor proposals and any required Planning permits (e.g., Design Review, Certificate of Appropriateness). Applicants for this program are exempt from Planning and Building permit fees by the City Administrator, who is authorized to waive City fees associated with the Program. This fee exemption does not apply to fees mandated by the State of California including, but not limited to, the California Green Building Standards fees.
3. Application Review - Staff reviews the application for conformance with the Program guidelines. Final approval is made by the City Administrator and Director of Development Services.
4. Property Inspection - A site visit will be arranged between City Staff and the property owner and/or business owner to undertake an inspection of the building and develop specifications for the Program. Staff will inspect the property to ensure that the building meets code requirements for the exterior of the building.
5. Award of Grant - Once the City approves the grant, a notice is provided to the applicant, generally within three weeks of the City receiving a complete application. Once an applicant
City Council Agenda
March 19, 2024
has received the award notice, work may proceed. The City will schedule a pre - construction meeting with the property/business owner, contractor, and City Staff.
6. Start of Construction - The City will issue a "Notice to Proceed" to the contractor, signed by the property/business owner(s) and the City. No work shall begin until all required permits have been issued by the City's Building and Safety Division.
7. Reimbursement Processing - Grant funds will only be disseminated to the contractor, not the applicant once the construction of the City -approved improvements has been completed and has been inspected and approved by City Staff. Grant funds will be disseminated upon the issuance of a Notice of Completion by City Staff. The City will process the request and provide the reimbursement, generally within four weeks of the request to the Contractor.
ENVIRONMENTAL ANALYSIS:
The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) requires analysis of agency approvals of discretionary "projects." A "project," under CEQA, is defined as "the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment." The Program is a project under CEQA. Staff has reviewed the Program to determine the required level of review under CEQA. The Program itself is exempt from CEQA under State CEQA Guidelines Section 15301 (Existing Facilities). This exemption applies to "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination." The Program would provide grant funding for improvements to existing structures in Old Town Placentia. Candidate improvements include, but are not limited to, exterior alterations including painting and feature rehabilitation, building repair, and sign replacement or enhancement, which are similar to the listed example projects under the State CEQA Guidelines.
Although the Facade Improvement Program itself is exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines, the Program does not exempt projects from the City's Historic Resources Ordinance, which may require additional CEQA review for significant alterations to locally designated historic resources pursuant to the Placentia Municipal Code. However, CEQA review for projects that involve locally designated Historic Resources will be evaluated on a project specific basis.
1 FISCAL IMPACT:
The fiscal impact in FY 2024-25 will be in the amount of $180,778 for the Program. A total of $180,778 in CDBG funds from the U.S. Department of Housing and Urban Development have been allocated to establish a Facade Improvement Program. No General Fund dollars will be used for the program.
City Council Agenda
March 19, 2024
Prepared by:
Reviewed and approved:
Kiana Louie Jew)Ine
Senior Management Analyst - Economic Deputy
Development
Reviewed and approved:
Jose • h M. Lambert
Director of Development Services
Reviewed and approved:
Damien '-Arr6la
City Administrator
ega
'rector of Administrative Services
Reviewed and approved:
ernniler Lampmaf'
Finince Director'.
Attachments:
1. Exhibit "A" - Guidelines and Application (Changes Highlighted)
2. Exhibit "B" - Guidelines and Application (Clean Version)