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ABSTRACT:
CITY OF
NEWPORT BEACH
City Council Staff Report
March 24, 2015
Agenda Item No. 18
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Kimberly Brandt, Community Development Director — (949) 644 -3226,
kbrandt@newportbeachca.gov
Brenda Wisneski, Deputy Community Development Director
(949) 644 -3297
Balboa Village Facade Improvement Program Funding
The City Council approved the Balboa Village Commercial Facade Improvement Program in October
2014. Tonight's action transfers funds from the Balboa Village Parking Management District Fund Balance
account to implement the grant program.
RECOMMENDATION:
a) Approve Budget Amendment No. 15BA -039 that appropriates $98,500.00 from the Balboa Village
Parking Management District Fund Balance to expenditure account 7444- C8002039, Balboa Village
Commercial Facade Improvement Program; and
b) Authorize the Community Development Director to approve and execute Grant Agreements.
FUNDING REQUIREMENTS:
The Budget Amendment records and appropriates $98,500.00 from the Balboa Village Parking
Management District Fund Balance to expenditure account 7024- C8002039, Balboa Village Commercial
Facade Improvement Program.
DISCUSSION:
As part of the Balboa Village revitalization efforts, in October 2014, the City Council approved a
Commercial Facade Improvement Program which offers grant funding to incentivize exterior improvements
to commercial buildings in the Village. Details of the program are provided as Attachment 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.
Facade 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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The Balboa Village Parking Management District Fund Balance receives revenue from parking meter fees
collected in the commercial area of the Village and was created to support commercial fagade
improvements, as well as other enhancement programs for the Village. The parking district boundaries
are shown in Attachment CC -2. Revenue for the Parking District Fund does not include revenue collected
from parking meters located in the tidelands area. Approximately $138,000 is expected to be in this
reserve by June 30, 2015.
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 Balboa Village Parking Management District
Fund Balance (Attachment CC -3). The remaining funds will be requested from the Community
Development Block Grant (CDBG) fund reserve as part of the Fiscal Year 2015/16 Budget.
City Council has also authorized other conceptual improvements, including a streetscape improvement
plan and wayfinding sign program. The BVAC recommends that these improvements also be funded by
the Balboa Village Parking Management District Fund Balance and, therefore, will be implemented in over
several phases assuming Council approval at a later date(s) of these programs.
It is not uncommon that cities would use discretionary revenue (such as parking revenue or other General
Fund sources) to encourage economic development. Our City has, in the recent past, supported two
merchants associations (Balboa Village and Marine Avenue) with $40,000 per year to support their
operations, including website development. We provide staff resources to the Restaurant BID and the
CdM BID as well.
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 CC 1 - Program Summary
Attachment CC 2 - Parking District Boundaries
Attachment CC 3 - Budget Amendment
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ATTACHMENT CC 1
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 $15,000 - $50,000 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
am,
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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Disclaimer: Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
Newport Beach and its employees and agents
disclaim any and all responsibility from or relating to
any results obtained in its use.
400
Imagery: 2009 -2013 photos provided by Eagle
Imaging www.eagleaerial.com
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ATTACHMENT CC 3
City of Newport Beach NO. BA- 15BA -039
BUDGET AMENDMENT
2014 -15 AMOUNT: $sa,5oo.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
�X Increase Expenditure Appropriations X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from General Fund Reserves
EXPLANATION:
This budget amendment is requested to provide for the following:
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
444 3605 Balboa Village Parking Mgmnt Dist -Fund Bal $98,500.00
REVENUE ESTIMATES (3601)
Fund /Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 7444 Balboa Village Parking Management District
Account Number C8002039 Balboa Village Commerical Facade Improvement Program $98,500.00
Division Number
Account Number
' Automatic System Entry.
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Signed: �/�7 / lI % 3—/1 — ( j
KEW Finaanr Approval: Finance Director Date
Signed: r== t ---- -� � -1.L� 3 ►� 1)'S
Administrat`rve Approval: City Manager Date
Signed:
City Council Approval: City Clerk Date
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