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Home My WebLink AboutAmendment to the Facade Enhancement Program GuidelinesREQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation: CITY OF PALM DESERT STAFF REPORT AMEND THE FACADE ENHANCEMENT PROGRAM GUIDELINES BRYCE LYNN WHITE, SENIOR CONSTRUCTION CONTRACT ADMINISTRATOR DECEMBER 9, 2004 FACADE ENHANCEMENT PROGRAM REPORT TARGET AREA MAP By Minute Motion, amend the Fagade Enhancement Program Guidelines as follows: 1. Remove . the area west of Monterey Avenue from the Fagade Enhancement Program (FEP) boundaries. 2. Increase the Maximum FEP Consideration to $40,000 for a "Standard" project. 3. Increase funds with City Council approval for acceptable "dual facade" properties located between El Paseo and Highway 111 from Portola Avenue to Monterey Avenue, excluding Larkspur Lane to Lupine Lane, such that they are eligible for an additional 50% in FEP funds when "dual facades" (front and rear) are improved. 4. Increase funds with City Council approval for acceptable "corner facade" properties having store frontage on two streets such that they are eligible for FEP funds based on the length of both frontages when both are improved. Executive Summary: By approval of the staff recommendation, the City Council will approve amending the Fagade Enhancement Program to provide additional financial incentives for public participation in the program. Rejection of the staff recommendation will leave the guidelines unchanged. Staff Report Amend the Facade Enhancement Program Guidelines Page 2 of 3 December 9, 2004 Background: The goal of the Facade Enhancement Program is to improve the exterior aesthetics of commercial buildings within the Core Commercial Area of Palm Desert. This helps create a more positive impression of Palm Desert for tourists and residents. The Facade Enhancement Program was approved by the City Council and Redevelopment Agency Board on July 6, 2000. The FEP funds provided were limited to 50% of the construction cost, not -to -exceed a grant amount of $25,000. This was adequate to serve small properties. On April 5, 2002, the City Council authorized revising and expanding the FEP Guidelines. The grant size for "standard lots" (12,000 square feet with typical lineal frontage of 60 feet) was increased to $35,000. Larger projects were eligible for grants proportional to the grants awarded to the smaller projects, based on lineal frontage or square footage. The grant award limit of no more than 50% of the total project's costs was continued. On February 12, 2004, the City Council authorized amending the expanded guidelines again. The grant amounts for larger projects above the standard of $35,000 now require City Council approval prior to a funding commitment. This provides for greater oversight by the City Council. There are seventeen (17) projects that have been completed thus far under the program. The improved frontage totals approximately one-third of a mile, which is roughly equivalent to three (3) blocks in total. The total actual dollar costs of FEP projects completed to date are $3,254,000. The City contribution has been $611,000, which is 19% of the total cost. Discussion: On November 8, 2004, staff met with a committee to review the Facade Enhancement Program. Staff's recommendation to amend the FEP Guidelines is based on those discussions. Staff is recommending that the commercial area west of Monterey be deleted from the program because of the nature of these properties. These properties are larger and irregularly sized. It is staff's opinion that it will be more appropriate to assist these properties on an individual basis under Owner Participation Agreements. The cost and difficulty of construction has increased dramatically over the last two years since the program was expanded. Given the high visibility of the program and its positive impact in the community, staff is recommending increasing the Maximum FEP Consideration to $40,000 for a "Standard" project. In response to applicants who request additional funding on the basis of disproportionate amounts of facade to be improved, staff is recommending amending the program guidelines to provide an additional 50% (up to $20,000 for a standard size GARDA\Maria Hunt\WPDATA\HOUSINGIWHITE\stfrpts\120904fepguidelines.doc Staff Report Amend the Facade Enhancement Program Guidelines Page 3 of 3 December 9, 2004 property) in FEP funds when "dual facades" (front and rear) are improved within the following designated area with City Council approval. The designated area in which dual facades would be eligible for additional funding are those properties located between El Paseo and Highway 111 from Portola Avenue to Monterey Avenue, excluding Larkspur Lane to Lupine Lane (excluding "Jensen Center' block and "Office Max Center" block). These properties have high visibility from traffic on two sides: Highway 111 and President's Plaza. Many of the businesses have public entries on both sides. Consequently, staff believes that a greater investment in the exterior upgrades is justified. This will make standard size dual facade properties eligible for up to $60,000 ($40,000 plus $20,000) in FEP funds. Similarly, staff recognizes that "corner facade" properties with store frontage on two streets are unique and have substantially higher costs when improving both frontages. Staff is recommending that properties on corners that have store frontage (entrances and windows) on two streets be eligible for FEP funds based on the length of both frontages, with City Council approval. This will make standard size corner facade properties eligible for up to $80,000 in FEP funds. Staff anticipates that the result of the amended guidelines upon FEP expenditures will remain within the amounts currently budgeted. Submitted by: e L. hi Senior C n ruction Contract Administrator mh Approval: rC in�McCarthy edevelopment Carlos L. Orteg , City Manager Department Head: v of6Re en Director opment/Housing Paul 'bsiorDirector of Finance GARDA\Maria Hunt\WPDATA\HOUSING\WHITE\stfrpts\120904fepguidelines.doc FACADE ENHANCEMENT PROGRAM Prepared by Bryce Lynn White NOVEMBER 18, 2004 -- COMPLETED PROJECTS -- Projects Completed Project Owner City Since Expansion Cost Contribution Contribution Fred Sands Realty $ 84,717 $ 49,717 $ 35,000 73-700 El Paseo 50 X 215 = .25 Acres Sunshine Picture Frame $ 44,124 $ 22,062 $ 22,062 73-754 Highway 111 50 x 144 = .17 Acres Tri A -Bike $ 50,000 $ 32,500 $ 17,500 44-841 San Pablo 65 x 150 = .22 Acres San Pablo Center $2,450 $1,225 $1,225 44-79 San Pablo 130 x 150 - .45 Acres Tarbell Realtors $327,227 $227,227 $100,000 73-261 Highway 111 200 x 214 = 1.23 Acres Chris -Linda Inc. $ 60,126 $ 30,063 $ 30,053 73-705 El Paseo 120 x 200 = .55 Acres Palms to Pines Central $541,590 $466,590 $75,000 72-760 El Paseo 244 x 240 = 1.34 Acres Harvest Health Food $112,727 $ 82,727 $ 30,000 73-950 Highway 111 57 x 144 = .19 Acres El Paseo Square $1,154,329 $1,054,329 $100,000 73-730, 73-394 El Paseo 246 x 100 = 1.02 Acres Subtotal Completed After 2,377,290 $1,966,440 $410,850 Expansion Percentage of 100% 83% 17% Contribution GARDA\Maria Hunt\WPDATA\HOUSING\WHITE\FEP Rpts\statusrpt111804.doc 1 -- COMPLETED PROJECTS -- Projects Project Owner Agency Completed Before Cost Contribution Contribution Expansion Village Counseling 73-302 Highway 111 60 x 133 = .19 Acres Castelli's Ristorante 73-098 Highway 111 60 x 118 = .19 Acres Red Barn 73-290 Highway 111 60 x 132 = .19 Acres Blinds Etc. 74-115 Highway 111 60 x 172 = .24 Acres Elegante Jewelry 73-330 El Paseo 50 x 232 = .25 Acres Mares Golf Service 73-185 Highway 111 50 x 219 = .25 Acres Pace Setter Patio 73-195 Highway 111 100 x 219 = .51 Acres ---------------------------------- Super Cleaners 73-211 Highway 111 50 x 219 = .25 Acres Subtotal Completed Before Expansion Percentage of Contribution Total Complete Percentage of Contribution $117,237 $92,237 $25,000 $298,264 $273,264 $25,000 $ 74,601 $ 49,601 $25,000 $ 80,176 $ 55,176 $25,000 $128,483 $103,483 $25,000 $59,459 $34,459 $25,000 ---------------------------------------- ------------------- $59,459 $34,459 $25,000 ---------------------------------------- ----------------------- $59,459 $34,459 $25,000 $877,138 100% $3,254,428 100% $677,138 $200,000 77% 23% $2,643,578 $610,850 81 % 19% GARDA\Maria Hunt\WPDATA\HOUSINGIWHITE\FEP Rpts\statusrpt111804.doc 2 Approved Projects Hartman Jewelers 73-290 El Paseo 50 x 234 = .27 Acres Desert Map and Aerial 73-612 Highway 111 50 x 143 = .16 Acres Chapman & Sons 73-740 El Paseo 50 x 213 = .25 Acres Manhattan Bagel 73-845 Highway 111 50 x 188 = .22 Acres Firecliff Restaurant 73-725 El Paseo 120 x 200 = .55 Acres Total -- APPROVED PROJECTS -- Estimated Estimated Project Owner Cost Contribution $105,000 $ 70,000 $ 95,000 $337,000 $162,000 $ 85,000 $784,000 $ 60, 000 $267,000 $127,000 $ 50,000 $574,000 Maximum City Contribution $ 35,000 $ 35,000 $70,000 $ 35,000 $ 35,000 $210,000 GARDAWaria HunAWPDATMHOUSINGUHITETEP Rptslstatusrpt111804.doc 3 -- PROPOSED PROJECTS -- Proposed Estimated Estimated Projects Project Owner Cost Contribution Matsuri Restaurant $180,000 $145,000 73-759 Highway 111 50 x 193 = .22 Acres Pete Carlson's Golf $120,000 73-741 Highway 111 100 x 193 = .45 Acres Chinese Antiques $195,000 73-731 Highway 111 50 x 194 = .22 Acres The Blue Pig $185,000 74-220 Highway 111 100 x 132 = .30 Acres Maytag Appliance $230,000 74-124 Highway 111 120 x 140 = .39 Acres Galleria Building $650,000 73-111 El Paseo 329 x 150 = 1.13 Acres Coble El Paseo $350,000 73-350 El Paseo 150 x 232 = .80 Acres Schematic Design $900,000 One block of Highway 111 between San Pablo and De Anza 342 x 100 = .79 Acres $.85,000 $140,000 $130,000 $165,000 $550,000 $270,000 Totals $2,810,000 $2,185,000 "Subject to City Council Approval -- ALL PROJECTS -- ALL PROJECTS Complete & Current Percentage of Contribution Maximum City Contribution $ 35,000 $ 35,000 $ 55,000* $ 55,000* $ 65,000* $100,000* $ 80,000* $200,000* $625,000 ACTUAL & ACTUAL & ACTUAL & ESTIMATED MAXIMUM ESTIMATED OWNER AGENCY/CITY COST CONTRIBUTION CONTRIBUTION $6,848,428 $5,402,578 $1,445,850 100% 79% 21% GARDAWaria Hunt\WPDATA\H0U8ING\WHITE\FEP Rpts\statusrpt111804.doc 4