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HomeMy WebLinkAboutRevised Facade Enhancement Pgrm GuidelinesCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE THE REVISED FA�ADE ENHANCEMENT PROGRAM GUIDELINES SUBMITTED BY: Martin Alvarez, Director of Economic Development DATE: October 24, 2014 CONTENTS: Fa�ade Enhancement Guidelines Fa�ade Enhancement Program Map Recommendation By Minute Motion: 1. Approve the revised Fa�ade Enhancement Program (FEP) Guidelines. Backqround The Fa�ade Enhancement Program (FEP) was initiated in 2000 with a goal to substantially improve the exterior aesthetics of commercial buildings within the Core Commercial Area of Palm Desert. Over the last decade the FEP has assisted 38 properties both on Highway 111 and EI Paseo to revitalize their building frontages. This joint participation program has created over $16M in private investment with a City contribution of $2M. Over 4,500 linear feet of building frontage has been improved within the commercial core. The program has helped to create a better business environment and a more positive impression of Palm Desert for our residents and visitors. In 2012, the FEP was suspended due to budget constraints. Since the suspension of the program, many commercial property owners have continued to express interest in the program. Discussion In June 2013, the City Council directed staff to establish a new Economic Development Fund with a committed fund balance that would allow the City to continue the Fa�ade Enhancement Program. Fund 425, Capital Projects has been established and the initial committed funds will come from the sale of two City owned properties known as the former Visitor Center located on the corner of Highway 111 and Monterey Avenue and the Joni Corporation Yard. Both properties are in escrow and the anticipated sale proceeds will yield approximately $875,000. The proceeds are anticipated to be available by the end of November 2013. Staff Report Fa�ade Enhancement Program Guidelines October 24, 2013 Page 2 of 3 In order to reinstitute the FEP, staff has developed guidelines that will continue the efforts of partnering with property owners to enhance the City's appearance and stimulate economic growth. The goals and funding parameters of the FEP remain the same as previously instituted with slight modifications to eligible properties, funding assistance, eligible improvements and funding allocations. Staff has prepared a comprehensive FEP Guidelines document, which is attached to this report. Below is a summary of the revised guidelines: Eliqible Properties: Properties having frontage on Highway 111 and EI Paseo between Highway 74 on the west and Deep Canyon Road on the east are eligible for FEP funding. Properties in close proximity to Highway 111 and hotel properties will be considered on a case-by-case basis and subject to City Council approval. Fundinq Assistance: The consideration of funds for a"Standard Project" (60 foot frontage, 12,000 square feet) is fifty percent (50%) of the project cost and up to $40,000. Properties larger than 60 feet in frontage are eligible for an additional $5,000 per each 10 feet of linear frontage and up to a maximum of $75,000. Dual Facades (i.e. facing Presidents' Plaza parking lots, Lupine to Sage, and corner lots) are eligible for an additional fifty percent (50%) consideration in funding where both facades are significantly improved, but are subject to the $75,000 maximum, subject to City Council approval. Eliqible Improvements: Improvements that will be considered for assistance through the program are those that will result in significant improvement to the physical appearance of a property. In addition to improvements to exterior facades, awnings, landscaping, parking lots and sustainability, energy conservation improvements and renewable energy projects are eligible. Fundinq Allocations: The primary goal of the current FEP funding is to focus on older properties fronting Highway 111. Properties within the Highway 111 corridor are often the first impression visitors have of Palm Desert's commercial core. The Highway 111 commercial corridor Staff Report Fa�ade Enhancement Program Guidelines October 24, 2013 Page 2 of 3 holds some of the City's oldest buildings and with significant need for fa�ade upgrades. In order to address this need, eighty percent (80%) of the available funding will be allocated toward properties having frontage on Highway 111, between Highway 74 and Deep Canyon Road, on a first come, first serve basis. Twenty percent (20%) of the available funding will be allocated toward properties having frontage on EI Paseo, between Highway 74 and Highway 111, on a first come, first serve basis. Based on the estimated $875,000 allocated funds, the estimated amount of funding available for Highway 111 properties is $700,000. The estimated amount of funding available for EI Paseo properties is $175,000. Fiscal Impact Funding for the FEP will be allocated from the sale proceeds of the two City owned properties. The estimated proceeds of $875,000 will be deposited into the Economic Development Fund and earmarked for the FEP. There will be no direct impact to the City's General Fund. Submitted By: �rtin Alvarez Director of Economic Development Approved: Paul Gibson, Finance Director �er CITY COUNCILAC�TON APPROVED DFNiFD RECEIVED OTNER MEET G DAT �, �� ���� ����� AYES:I ?Su� 1 F 7/ I��, �- J/; � l��ni NOES: tm ABSENT; �''Y► �' ABSTAIN: ���'�� - VERIFIED BY: ��K-�� Original on File with City�Clerk's Office City of Palm Desert Economic Development Department FA�ADE ENHANCEMENT PROGRAM GUIQELINES AND APPLICATION PURPOSE To establish policy guidelines and procedures regarding the grant application and award process for the City of Palm Desert Fa�ade Enhancement Program (FEP). INTRODUCTION The primary purpose of the Fa�ade Enhancement Program ("FEP") is to improve the visual appearance, viability and long-term success of the City's commercial districts. The FEP offers financial assistance to property owners and businesses that own property, which are commercial in nature, and is located within the boundaries of the Highway 111/EI Paseo core commercial area, between Highway 74 to Deep Canyon Road, within the Palm Desert city limits. Businesses that are not physically located on Highway 111/EI Paseo commercial corridor, but are close enough proximity to have a significant impact on the appearance of the Highway 111 corridor, as well as hotel properties, may also qualify for participation. The following program guidelines act to detail the various aspects of the program including: eligibility, structure of assistance, the application and design review process and the construction phase. Eligibility of specific properties and proposed improvements shall be determined by City staff in accordance with these guidelines and budgeted funds. Assistance through the program is only available for qualifying approved improvements that are started after issuance of the City's written authorization to proceed. FUNDING The City of Palm desert's FEP has limited funding and is available on a first come, first serve priority. The initial funding is established in the Economic Development Fund with approximately $800,000. Future funding sources are being explored. Funding allocations of the available funding will be as follows: • 80% of available funding shall be earmarked for Highway 111 properties • 2Q°/Q afi available funding shali be earmarked fior EI Pasea properties ELIGIBILITY Area The FEP is available to assist property owners located on Highway 111 and EI Paseo between Highway 74 on the west to Deep Canyon Road on the east. Properties in close proximity to Highway 111 and hotel properties will be considered on a case-by- case basis to determine if assistance through the program is warranted and is subject to City Council approval. Imqrovements Improvements that will be considered for assistance through the program are those that will result in a significant improvement to the physical appearance of a property and will thus depend on the particular needs of the property in question. Generally improvements that could qualify for assistance include but are not limited to: fa�ade renovation, doors, windows, awnings, exterior lighting, landscaping, parking lot improvements, fencing/walls, solar photovoltaic systems and other "green" improvements, soft costs such as permit fees, and architectural design costs up to 10% of construction costs. The use of energy efficient materials during the improvement process is encouraged. Proposed improvements to businesses that are part of a multiple tenant building will be considered based on the overall impact the improvements will have on the visual appearance of the entire property. G:\Econ DevelopmentlFacade Enhancement Program�FEP Guidelines.docx G PROGRAM ASSISTANCE Financial Assistance Subject to funding, properties in need of a significant level of improvement will be considered for financial assistance in the form of 50/50 ratio matching grants of up to $40,000 for standard sized lots (i.e. 60 feet frontage and under 12,000 square feet). Lots having greater than 60 feet of frontage are eligible for an additional $5,000 per �a�h 1 Q feet of �dditic�nal fr�nta�e up t� � m�ximum o# $75,OOQ. As an example, if the property has a linear frontage of 100 feet, the property would be eligible for $40,000 for the first 60 feet of frontage and an additional $5,000 for each 10 feet of frontage above the 60 feet or $20,000 ($5,OOOx4) as long as the construction cost is above $120,000. Corner properties having frontage on two streets will be eligible to count both linear frontages toward their total funding eligibility. Parcels having "dual facades" located between Portola Avenue and Monterey Avenue (excluding Larkspur Lane to Lupine Lane) are eligible for an additional 50% in FEP f�nding (above the standard $40,000) when both front and rear facades are improved, but are still subject to $75,000 maximum funding. Any cost above the $75,000 maximum will be the responsibility of the applicant. The grant will be provided as direct payment to the property owner based on detailed invoices for approved work and work progress. Properties in need of financial assistance in excess of the maximum $75,000 allowed in the program guidelines may be provided with additional funding, at the discretion of the City Council on a case by case basis. Technical Assistance The City will provide assistance to applicants with the application and design review process. The determination as to whether a proposed project meets the standard to hire a licensed architect will be made by the FEP team, consisting of staff inembers from the Economic Development and Community Development Departments. PROCEDURES Prospective applicants should first meet with Economic Deveiopment Department staff to discuss the parameters of the program, the goals of the applicant and the application review process. This initial discussion will provide both parties with an idea of how and G:�Econ Development\Facade Enhancement Program\FEP Guidelines.docx 3 to what extent the program might assist the property in question. Projects will be reviewed on a broad scale taking into consideration the overall condition of the property. After this initial meeting, applicants will follow the procedures outlined below based on the level of assistance determined during the initial meeting with Economic Development staff. 1. File an application for assistance. 2. Upon initial approval of the application, meet with Economic Development staff to discuss the proposed improvements and preliminary concepts and estimated construction costs. If the scope of the project requires professional drawings continue to Step 3. If professiona! drawings are not required skip to Step 4. 3. Work with an architect to have professional designs drawn. 4. Process minor/major modification approval (determination to be made by the Director of Community Development): a. Minor modifications can be approved at staff level, but may still require approval by the City's Architectural Review Board. b. Major modifications must be reviewed by the City Architectural Review Committee and the City Council. 5. Meet a!! submittal requirements imposed by the Planning Department and/or the City's Architectural Review Commission. Secure bids for the construction and secure finaf cost estimate. 6. Fa�ade Enhancement project and funding request presented to City Council. If approved, move to step 7. 7. Meet with Economic Development staff to facilitate the execution of a Fa�ade Enhancement Agreement and recordation of a Fa�ade Easement prior to commencing with construction. 8. Receive written Notice to Proceed and begin construction. CONSTRUCTION Once the project receives all necessary approvals and the required Fa�ade Enhancement Agreement has been executed and Farade Easement has been G:\Econ Development\Facade Enhancement Program\FEP Guidelines.docx 4 recorded, the applicant will receive a written authorization from the City to proceed. Please note: onlv aualifvinq approved improvements that are started and competed after issuance of the written Notice to Proceed will qualifv for assistance. Any costs related to work started prior to receipt of the written Notice to Proceed will be the sole responsibility of the applicant. Unless otherwise authorized by City staff, applicants must commence construction of approved projects within sixty (90) days of approval or the project will be deemed as �xpired. Fui�herm�r�, �II v►r�rk must be compl�te within one hundred ei�hty (180} ti�y� from the issuance of the written Notice to Proceed. Failure to complete the project in this timeframe will result in the project becoming ineligible to receive assistance through the FEP. Additionally, the applicant must maintain the improvements at his/her sole expense for a period of five (5) years, in accordance with customary City standards and the City Fa�ade Enhancement Agreement. Any changes to the improvements must be approved by the City prior to making the change. Applicants are required to obtain and produce three detailed bids from licensed contractors to construct the improvements. As previously noted, these bids do not require prevailing wage rates. Bids from each contractor must be itemized so that a cost is associated with each task or material to be installed. Upon receipt of the City's written authorization to proceed, the applicant will hire a contractor and will follow the procedures outlined below. 1. Prior to commencing construction of the improvements, the applicant shall allow staff to take photos of the project in its "before" stage. 2. Contractor secures afl applicable City permits. 3. Applicant schedules and monitors construction of the improvements. a. Contractors must construct the project improvements as specified in the final design. b. Any changes previously agreed upon and contracted must have prior written approval of Economic Development staff. It is the responsibility of the applicant to notify staff of these proposed changes in writing. 4. Applicant ensures that all work on the project is completed as previously approved and at a satisfactory level. Unsatisfactory work, or work not included in the approved plans will not be eligible for reimbursement or payment through the program. G:\Econ Development�Facade Enhancement Program\FEP Guidelines.docx 5 5. When invoiced, City staff issues payment to the property owner based on approved detailed invoices submitted by the applicant. 6. Upon completion of the approved improvements, applicant contacts Economic Development staff to schedule a final inspection. 7. City staff completes inspection of improvements, takes "after" photos of the praper�y. TERMINATION The City of Palm Desert reserves the right to terminate any agreement under the FEP if a participant is found to be in violation of any conditions set forth in these guidelines or if the project has been started prior to an executed agreement with the City of Palm Desert. APPLICATION AND INFORMATION If you wish to participate in the FEP or would like additional information, please contact Martin Alvarez at (760) 346-0611 ext. 467 or malvarez@citvofpalmdesert.orq. G:\Econ Development\Facade Enhancement Program\FEP Guidelines.docx 6 L- - \,‘ 0 0 cz) co SAGV0Vd -1V1la AlE1101-1A V2:1V 130HV_L -11 40) \ — ETEPCItitr9tf-RG: n 7r11 1 EEPCANYON-RL. C-- c _ 6 PtIO (S) weiBoid lueweouequ3 apeoeA hu III 0111 Rpm Ft. 01111 Rill