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HomeMy WebLinkAboutPR 15576: EDC/DOWNTOWN PORT ARTHUR GRANT PROGRAMInteroffice 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