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MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: October 13, 2009
Subject: P. R. No. 15576; Council Meeting of October 20, 2009
Attached is P. R. No. 15576 amending Resolution No. 09-
333 of the City of Port Arthur Section 4A Economic Development
Corporation's Policies and Procedures for Site and Related
Improvements to Downtown Port Arthur Grant Program.
PR15576.memo
P.R. No. 15576
10/13/2009
RESOLUTION NO.
A RESOLUTION AMENDING RESOLUTION NO. 09-333
OF THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION'S
POLICIES AND PROCEDURES FOR SITE
IMPROVEMENTS AND RELATED IMPROVEMENTS
NECESSARY TO PROMOTE OR DEVELOP NEW OR
EXPANDING BUSINESSES FOR OPERATION
DOWNTOWN (A DOWNTOWN IMPROVEMENT
PROGRAM)
WHEREAS, on June 15, 2009 at its regular meeting, the Board of Directors of the City
of Port Arthur Section 4A Economic Development Corporation (the °PAEDC") approved the
Policies and Procedures for OPERATION DOWNTOWN, a Downtown Improvement Program
of the PAEDC for Site Improvements and Related Improvements necessary to promote or
develop new and expanded business enterprises (the "Downtown Redevelopment Policies and
Procedures");and
WHEREAS, on July 28, 2009, the City Council deemed it in the best interests of the
citizens of Port Arthur to approve the Downtown Redevelopment Policies and Procedures as
presented to City Council by the PAEDC; and
WHEREAS, on October 8, 2009 at its regular meeting, the Boazd of Directors of the
PAEDC presented amendments to the scope of projects that could be financed under the
Downtown Redevelopment Policies and Procedures to provide that "Projects will be granted
Twenty Five Thousand Dollazs ($25,000) to Two Hundred Fifty Thousand Dollars ($250,000) to
be matched by private source funds." It was further provided that "For every Three Dollars ($3)
of investment by private source funds into an Operation Downtown project, PAEDC will invest
One Dollaz ($1), not to exceed Two Hundred Filly Thousand Dollars ($250,000) of public dollaz
investment."
WHEREAS, the Boazd of Directors of the PAEDC determined that these amendments
would provide greater scope of opportunities for downtown site and related improvement
development, but would continue to provide a maximum investment by PAEDC in proposed
projects.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble aze true and correct.
Section 2. That the Downtown Redevelopment Policies and Procedures with the
amended grant pazameters and the amended private source investment to public investment as
outlined in the Downtown Redevelopment Policies and Procedures attached hereto as Exhibit
"A" and made a part hereof for all purposes aze approved by the City.
Section 3. That a copy of the caption of this resolution be spread upon the Minutes of the
City Council.
READ, ADOPTED AND APPROVED ON THE day of A.D.
2009, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the
following vote:
AYES:
Mayor
CityCouncil:_
NOES:
DELORIS "BOBBIE" PRINCE, MAYOR
Attest:
TERRI HANKS, CITY SECRETARY
APPROVED:
FLOYD BATISTE, EDC CEO
TO
EDC ATTORNEY
APPRO//V///E/~(D/ AS TO FORM:
___-!!/J/ ~ l
VALECIA R. TIZ O, ACT G CITY ATTORNEY
EXHIBIT "A"
OPERATION DOWNTOWN
A Downtown Improvement Program of the City of Port
Arthur Economic Development Corporation for Site
Improvements and Related Improvements necessary to
promote or develop new or expanded business enterprises
A key element of a revitalization effort is the return of activity to a commercial
corridor. These first few steps can be the spark to ignite interest and spur new
commercial excitement. Operation Downtown provides a catalyst for these first
steps. New site improvements and related improvements such as fresh paint,
new awnings or complete facade rehabilitation all signal that something positive
is happening. Operation Downtown is a conditional grant program available for
site improvements and related improvements to commercial buildings located in
Port Arthur Downtown Revitalization target areas (see attached map for target
area boundaries). Projects will be granted $5925,000 to $250,000 to be matched
by private source funds. For every three dollars of investment by private source
funds into an Operation Downtown project Port Arthur Economic Development
Corporation (PAEDC) will invest one dollar, not to exceed $250,000 of public
dollar investment.
The purpose of Operation Downtown is to promote or
develop new or expanded business enterprises in the
designated downtown area as per the proposition approved
by the voters in the May 2009 Special Election for site
improvements and related improvements necessary to
promote or develop new or expanded business enterprises
which will also do the following:
• Reverse the deterioration of commercial structures in the targeted areas.
• Enhance efforts to market vacant space and attract new businesses.
• Stimulate new, private investment and economic growth.
• Promote consistency in design and create a fresh and aesthetically pleasing
environment.
• Assist property owners with the appropriate exterior rehabilitation of their
buildings and bring them up to code.
• Reduce the perception of crime.
• Invest in historic preservation and rehabilitation.
This package contains other documents detailing the application process and
information to assist you in completing the application. The package includes:
o This cover letter
o Basic Procedures and list of eligible projects
o Blank Application
o Map
For more information, contact:
Port Arthur Downtown Revitalization Program
4173 39"' Street
Port Arthur, TX 77642
409-963-0579
ELIGIBLE PROJECTS
Project Description
A conditional loan forgivable over five years may be provided to owners of
eligible properties to undertake site improvements and related improvements
which can include comprehensive exterior repair and facade upgrades or
renovations, and infrastructure improvements including sidewalk repairs and
landscaping in and adjacent to the public right-of-way. Conditional loan will be
forgiven over a five year period at a rate of 20% per year for every year that the
property is occupied, upon approval by the Board of Directors of PAEDC. The
conditional loan assistance is provided to the property owner on a
reimbursement basis as the renovation project progresses. All conditional loans
shall be secured by private sector matching investment of three to one dollar
from the property owner or a financial institution. The conditional loan shall be
secured by a mortgage on the improved real estate.
Eligib/e Properties
Applications may be submitted for commercial properties, either owner or tenant
occupied within the Port Arthur Downtown Revitalization target areas. Owners of
vacant buildings are encouraged to apply and improve property as a catalyst for
future occupancy. Mixed use buildings with retail/commercial in the storefront
are also encouraged.
Non Eligib/e Properties
Properties used primarily as residences are not eligible for Operation Downtown.
Eligible App/icants
Commercial property and business owners located in eligible areas may apply for
assistance. Tenants must have a signed lease and the property owner's approval.
The City Council of the City of Port Arthur and the Board of Directors of the
PAEDC may also apply for assistance.
Eligible Improvements
Operation Downtown will fund site improvement and related improvement
projects. All improvements must be permanent or fixed. Eligible improvements
may include, but are not limited to:
• complete facade and site rehabilitation;
• replacement of broken window panes, aluminum or wood windows and
broken store front glass;
• scraping, priming, and painting of window frames, cornice and store front;
• painting of brick facade and sites where brick has been previously
painted;
• repair or replace deteriorating signage and brackets when attached to the
building;
• repair or replace missing or broken tile;
• repair or replace worn awnings or canopies;
• removal of metal slipcovers to expose original materials;
• certain types of security elements or security recommendations;
• rehabilitation of the upper facade and site and display areas or side walls
of a building may also be eligible if street level improvements are
approved;
• roof repair when incidental to overall facade and site improvements.
^ Restore old historical facades
• Other site improvements as authorized by the proposition approved by the
voters in the May 2009 Special Election
Other minor repairs when incidental to overall facade improvements such as:
/ exterior lighting;
/ certain types of security elements or security recommendations;
/ roof repair;
/ repair of sidewalk, ADA accessibility;
/ detached signage;
/ new construction;
/ parking lots;
/ landscaping;
/ other improvements as approved by the EDC
In addition, professional, architectural, and City permit fees may be included in
the total improvement costs.
Ine/igib/e Improvements
The following improvements are not eligible for funding:
• burglar bars;
^ fencing;
BASIC PROCEDURE
Step 1 -App/icant E/igibi/ity
- Business or property owners are eligible to apply for Operation Downtown
funds if the business is 1 -located within a Port Arthur Downtown
Revitalization target area; and 2 -utilized primarily for commercial
purpose (this does NOT include residences or apartments).
- For information for Port Arthur Downtown Revitalization target area
boundaries see map included herein or contact the Operation Downtown
Coordinator br Port Arthur Downtown Revitalization Coordinator or the
EDC CEO.
- If needed, a meeting at the site with the applicant, their contractor and
Port Arthur Downtown Revitalization staff can be arranged to discuss the
application process, area design guidelines and/or to develop a
preliminary design concept.
Step 2 -Comp/ete The App/ication
- The application (enclosed herein) is to be completed by the applicant
(business owner, property owner or tenant). A completed application must
contain information for all three parts: applicant information, property
information and project information. Incomplete applications may result in
delays in processing.
- Design assistance or preliminary project discussion meetings may be
arranged if the applicant is uncertain what improvements are needed or
would like suggestion. Inquires may be made to the Operation Downtown
Coordinator at 409-963-0579.
- A completed application should be submitted to:
Port Arthur Downtown Revitalization Program
Port Arthur Economic Development Corporation
ATTN: Floyd Batiste, CEO
4173 39"' Street, Port Arthur, TX 77642
- Once an application is received, the Operation Downtown Coordinator will
confirm eligibility of the site and the proposed scope of work, notify the
applicant that the application has been received and is under review, and
arrange a Project Review meeting.
- Projects that are eligible for funding will be considered on a first come,
first served basis. There is no deadline; applications are accepted year
round. However, projects may be limited due to budget constraints and
funding availability.
Step 3 -Project Review & Contract Execution
- A Project Review meeting is required to be conducted prior to contract
execution and construction beginning.
- A Design Review Team (Sub committee from PAEDC Board) will conduct
the Project Review meeting with the applicant to review the application. A
site visit may also be helpful but is not required.
- The Design Review Team will discuss the merits of the project and form a
recommendation to either fund the project, or require the applicant to
make changes and re-submit.
~ The Design Review Team recommendation is presented to the PAEDC
Board of Directors.
- If the recommendation is accepted by the EDC Board of Directors, the
Design Review Team recommendation will be presented to the applicant
to accept or withdraw.
- If approved, a Grant Agreement (contract) will be prepared by the EDC
and affiliated attorneys or by the City Attorney and then forwarded to the
EDC Board of Directors and to the City Council for approval
- The applicant and the EDC will sign the Grant Agreement. A fully executed
Grant Agreement will be returned to the applicant. An Affirmative
Covenant of Maintenance document is also signed and filed with the
County Clerk's Office. Start of the construction prior to the date of
contract signing will void the grant.
Step 4 -Construction
- APre-Construction Meeting will be held to go over construction scope of
work, change orders, as well as other procedures. This meeting will
usually be held on site, prior to construction but after the contract is
signed. It is helpful if the applicants as well as contractors are present.
- If the improvements require a building permit, or approval from the Texas
Historic Design and Review Commission, the applicant must comply. The
City of Port Arthur Planning staff may be able to assist in the process on
the applicant's behalf.
- A Sub committee from Board or City staff may monitor the progress and
make periodic inspections during the project.
Step S -Reimbursement
- Funds will be provided on a reimbursement basis ONLY.
- Reimbursement will be processed at 90% rate with 10% retained until
completion of the work.
- Applicant will contact the PAEDC or City staff to conduct a final inspection.
If all parties are satisfied with the work, the PAEDC and applicant will sign
off on completion of the improvement.
- The applicant will complete the Project Completion form and submit it
along with copies of invoices, canceled checks, asking for final
reimbursement of applicable costs.
- When all work and documentation is received, the PAEDC staff will
request payment. A final check will be sent to the applicant.
Downtown Revitalization Target Area Map
~~
,~'
The boundaries of the Downtown Revitalization Target area are Lakeshore Drive to the
south, Houston Avenue to the west, 9"' Street to tfie north and Lake Charles Avenue to the
East. Properties on both sides of the right-of-way of the boundary roads will be considered
for Operation Downtown funding.
OPERATION DOWNTOWN
Site Improvement Grant Program
Application
APPLICANT INFORMATION
Is the applicant a: Corporation Partnership Proprietorship Individual
Name of Applicant: d/b/a
Mailing Address:
Contact Name:
Title:
Telephone: Work Home Email:
Type of Business:
PROPERTY INFORMATION
The Port Arthur Downtown Revitalization Target Area:
Street address of property to be improved:
Legal Description: Lot Block Tax Account No
Does the applicant own or lease the property.
If leasing, please include copy of lease agreement and letter of approval from
owner.
Is the property currently: occupied _
property be occupied (date)
What is the current and proposed use
vacant _ if vacant, when will
of the properly?
How many full time employees, if any, does the business currently employ?
Do you anticipate hiring additional employees after the proposed improvements
are complete? Yes No
If so, how many more?
PROTECT INFORMATION
Description of Site Improvements and related improvements including
improvements to facade:
Estimated total cost of project: $ (Attach Project Budget form)
Grant funds are available from $25i5A,000 to $250,000 per eligible property.
When does the project need to begin? Estimated time to complete
(Date)
job?
(# of days)
NOTE: Work must not start prior to contract execution.
Attach:
i. Recent photos of the property (required)
2. Budget and supporting estimates (required)
3. Copy of lease and/or letter from property owner granting approval (if
applicable)
4. Drawings or renderings that convey concept (if available)
5. Paint chips, color board or other samples (if available)
I certify that work has not started nor have I entered into any contrail with any
contractor for work to be covered under this grant application. I also understand
that I will have to sign an agreement with the City of Port Arthur Economic
Development Corporation to be approved b}Fthe City of Port Arthur regarding
this grant award; a maintenance covenant will be filed to insure that the
improvements will be maintained.
Applicant signature Date
Applicant printed name