HomeMy WebLinkAbout13 - Balboa Village Facade Improvement Program FundingCITY OF
y NEWPORT BEACH
City Council Staff Report
March 10, 2015
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kimberly Brandt, Community Development Director — (949) 644 -3226,
kbrandt@newportbeachca.gov
PREPARED BY: Brenda Wisneski, Deputy Community Development Director
PHONE: (949) 644 -3297
TITLE: Balboa Village Fagade Improvement Program Funding
ABSTRACT:
The City Council approved the Balboa Village Commercial Fagade Improvement Program in October
2014. Tonight's action transfers funds from the Neighborhood Enhancement Reserve account to
implement the grant program.
RECOMMENDATION:
Approve Budget Amendment No. 15BA -039
Neighborhood Enhancement B Reserve to
Commercial Fagade Improvement Program,
approve and execute Grant Agreements.
FUNDING REQUIREMENTS:
that appropriates $98,500 from the General Fund
expenditure account 7024- C8002039, Balboa Village
and authorize the Community Development Director to
The Budget Amendment records and appropriates $98,500.00 from the General Fund Neighborhood
Enhancement B Reserve to expenditure account 7024- C8002039, Balboa Village Commercial Fagade
Improvement Program.
DISCUSSION:
As part of the Balboa Village revitalization efforts, in October 2014, the City Council approved a
Commercial Fagade Improvement Program which offers grant funding to incentivize exterior improvements
to commercial buildings in the Village. Details of the program are provided as CC -1.
To maintain the momentum and create a physical result of the revitalization efforts to date, the Balboa
Village Advisory Committee (BVAC) recommends that the program be implemented in the near term.
Fagade upgrades, even minor upgrades, are relatively quick projects and have great potential to improve
the quality and character of the Village.
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To not impact the General Fund, the BVAC recommends that the program be funded through the
Neighborhood Enhancement Reserve (Area B) which historically received funds from parking meter
revenue collected on the peninsula. The purpose of the reserve funds is for enhancing and supplementing
services to the neighborhood and not supplanting existing services. Enhancements may be in the form of
capital improvements, special services, or extraordinary maintenance and shall include all expenditures
necessary or convenient to accomplish such purposes. Approximately $197,000 is currently in the
Reserve.
When the City Council created the Balboa Village Parking Benefit District in October 2014, it maintained
the Reserve, but discontinued depositing fifty percent of parking meter revenues into the reserve. Instead,
all parking revenues, outside the Balboa Village Parking Benefit District, are now deposited into the
General Fund.
Assuming 25 percent of business owners in the Village participate in the program, the overall cost of the
program is estimated to be $220,000. Funds will be expended on a first - come - first -serve basis to
qualifying applicants. Only $98,500 is requested from the Neighborhood Enhancement Reserve. The
remaining funds will be requested from the Community Development Block Grant (CDBG) fund reserve as
part of the Fiscal Year 2015/16 Budget.
Other improvements authorized in concept by the City Council include a streetscape improvement plan
and way finding sign program. The BVAC recommends that these improvements be funded with revenue
to be collected through the Balboa Village Parking Benefit District and, therefore, will be implemented in
over several phases assuming Council approval at a later date(s) of these programs.
ENVIRONMENTAL REVIEW:
This requested budget amendment is not subject to the California Environmental Quality Act ( "CEQA ")
pursuant to Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at
which the City Council considers the item).
ATTACHMENTS:
Description
Attachment CC1 - Program Summary
Attachment CC 2 - Budget Amendment
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ATTACHMENT CC1
Balboa Village
Commercial Facade Improvement Program
May 2014
Program Options
Tier 1
• Minor improvements such as painting, murals, lighting, anti - graffiti film coating, awnings,
landscaping, window treatments, signs, exterior repair, architectural treatments, and
other improvements to architectural features
• Allowed fagade upgrades must be exterior improvements visible from primary streets
• Grants offered up to $5,000 per tenant suite*
• 50 percent of grant money provided at project approval, with the remaining money
reimbursed at completion of project after receipts have been submitted*
Projects must be completed within 12 months of approval or Building permit issuance
• City permit fees waived
Tier 1 - Priority Block*
• Grants offered up to $10,000 per tenant suite
• 100 percent of grant money provided at project approval, with any remaining balance
reimbursed to the City at completion of project after receipts have been submitted
Expedited plan check review where feasible
Tier 2
• Major improvements such as structural upgrades to the fagade, which may include
related minor improvements
• Allowed fagade upgrades must be exterior improvements visible from primary streets
Grants could be used for architectural or design service
• Grants offered for up to 50 percent of the project costs up to a maximum amount of
$50,000*
50 percent of grant money provided at project approval, with the remaining money
reimbursed at completion of project after receipts have been submitted*
Projects must be completed within 18 months of Building permit issuance
• City permit fees waived
Tier 2 - Priority Block*
• Grants offered for up to 75 percent of the project costs up to a maximum amount of
$50,000
• 100 percent of grant money provided at project approval, with any remaining balance
reimbursed to the City at completion of project after receipts have been submitted
• Expedited plan check review where feasible
*See priority block information below.
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Priority block
Balboa Boulevard is the priority block to be targeted for initial funding as a model block that will
have the most impact upon completion. Improvements to this street will help spur other
property owners to participate in the program after seeing the results from the model block.
This is a priority block for the fagade program, and will not preclude concurrent improvements
to other areas recommended in the Master Plan and /or Urban Land Institute TAP Report.
For the first six months of Program implementation, all applications received for projects
located on Balboa Boulevard will include the priority block elements in addition to or in lieu of
the basic Tier 1 and Tier 2 components.
Costs and Funding
The costs of the program will be determined by the level of participation and types of projects
awarded grants. Approximate figures are listed below. When the Program is reviewed by City
Council, they will have the opportunity to set a maximum amount of funds to be allocated for
the Program.
Costs
Balboa Village contains approximately 55 commercial buildings. Several of the buildings in the
Village are in good condition and not all property owners /tenants will want to participate in the
Program; therefore, this analysis uses an initial participation rate of 25 percent, which would
provide substantial improvements to the area. Based on that percentage, it is anticipated that
14 buildings will participate in the program within the first few years. For the purposes of a
cost estimate, the assumptions below indicate that nine buildings will be included in Tier 1 and
five buildings will be included in Tier 2. The amount awarded will be based on project scope
and building size. The figures below will be used as a guideline when determining the grant
award amount for Tier 2.
Linear Feet of Fa ade
Maximum Grant
Up to 25'
$ 15,000
25' to 50'
$ 25,000
50' to 75'
$ 37,000
75' or more
$ 50,000
The cost estimate for Tier 1 is $5,000 per tenant suite. With nine participants, the Tier 1 cost
estimate is $45,000. The cost estimate for Tier 2 is $15,000450,000 per building ($1,000 to
$1,800 per linear foot). With five participants, the Tier 2 cost estimate is $175,000. The Tier 1
and Tier 2 estimate total is $220,000.
Additional costs will be incurred for implementation of the program, including outreach,
technical assistance, and evaluation of the Program.
Funding
The amount of funds dedicated to the Program will be considered by the City Council. There is
no guarantee of the amount of funds that will be appropriated during any given year. The
Program could be funded through a combination of the Community Development Block Grant
(CDBG) and the City's General Fund. CDBG funds are awarded to the City by the federal
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government. The availability of CDBG funds is contingent on Program conformance to the
CDBG National Objectives. The General Fund includes sales taxes, transient occupancy
taxes, property taxes, motor vehicle license fees, etc., and can be used to fund economic
development and capital programs.
Application Criteria and Additional Program Components
a) All nonresidential properties within Balboa Village are eligible for the Program.
b) Tenants may apply with property owner consent.
c) Project applications will be reviewed by the Community Development Director.
d) Grants will be awarded on a first come, first served basis.
e) All project cost estimates will be reviewed by the Building Official.
f) Receipts are required to be submitted at project completion.
g) Properties are eligible for Tier 1 and Tier 2 grants once every ten years.
h) Program funds are to be used for exterior building improvements rather than simple
routine maintenance.
i) Funds will not be awarded for removal of illegal improvements.
j) Additional improvements that are deemed to be consistent with the intent of the
Program will be reviewed and approved /disapproved on a case -by -case basis by the
Community Development Director.
k) Applications will not be accepted for improvements underway or already completed.
1) All improvements shall conform to the City Building Codes, Zoning Ordinance, and
applicable Design Guidelines.
m) Any applicant must have a current business license, be in compliance with all municipal
codes, and be free of any outstanding violations.
n) In accordance with the California Labor Code (Sections 1770 et seq.), prevailing wages
are required for all improvements completed through the Program. Participants in the
Program are responsible for ensuring that the improvements are in compliance with the
Public Works /Prevailing Wage Law.
o) Property owners are responsible for upkeep and property maintenance. By accepting
grant funds, the applicant commits to properly maintain all improvements and to keep
storefronts, as well as sides and back of buildings, clean and free of graffiti for a
minimum of five years at the applicant's own cost and expense.
p) Continuation of the Program is subject to sufficient funding as appropriated by the City
Council.
q) The City reserves the right to cancel or modify this Program at any time prior to grant
approval, without notice.
Next Steps
1) BVAC approval of Program
2) Obtain City Council approval and funding
3) Create application and guidelines
4) Provide enhanced outreach to property owners and tenants
5) Provide technical assistance for application
6) Administer Program
7) Evaluate Program annually
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ATTACHMENT CC 2
City of Newport Beach
BUDGET AMENDMENT
2014 -15
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
qX from General Fund Reserves
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure approoriations from the General Fund N
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
010 3769
REVENUE ESTIMATES (360 1)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
NO. BA- 15BA -039
AMOUNT: $ss,soo.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
Description
Gen Fund - Rsrv: Neighbrhd Enhncmnt B
Description
f
Amount
Debit Credit
$98,500.00
Description
Division Number 7024 Neighborhood Enhancement - B
Account Number C8002039 Balboa Village Commerical Facade Improvement Program
Division Number
Account Number
Signed: (/r i 1 � _/ ji��� l/j/c
�M' F'ye, nc�ial Approval: Finance Director
Signed:
Signed:
City Manager
City Council Approval: City Clerk
Automatic
$98,500.00
Date
`3j 41
Date
Date
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