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HomeMy WebLinkAboutFacade Improvements - 73-740 El PaseoPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL FOR REDEVELOPMENT ASSISTANCE TOTALING $70,000 BY CHAPMAN ENTERPRISES, INC. FOR FACADE IMPROVEMENTS TO A RETAIL BUILDING LOCATED AT 73-740 EL PASEO SUBMITTED BY: JUSTIN MCCARTHY, ACM REDEVELOPMENT DATE: MAY 13, 2004 CONTENTS: PHOTOS OF EXISTING BUILDING ELEVATIONS OF NEW STOREFRONTS Recommendation: By Minute Motion, that the Agency Board: 1. approve the recommendation for redevelopment assistance in the amount of $70,000 by Chapman Enterprises, Inc. for facade improvements to a commercial building located at 73-740 El Paseo, and; 2. authorize the preparation of an Owner Participation Agreement. Executive Summarv: Approval of the request will assist Chapman Enterprises, Inc., new owners of a building located at 73-740 El Paseo, with a complete facade renovation of both the front and back entrances. Denial of the request will not allow with the assistance with the renovation of the two facades. Discussion: Chapman Enterprises, Inc., owner of two men's apparel stores on El Paseo, Chapman & Son and Michael Scott, recently purchased a building located at 73-740 El Paseo. Chapman & Son has conducted business in the City of Palm Desert for 26 years, and 13 of those years have been on El Paseo. In addition, Chapman Enterprises, Inc., also opened Michael Scott, another menswear store on El Paseo 10 years ago. Up until this time, Chapman Enterprises, Inc. has always leased locations within the city. G:\BusCtr\Ruth Ann Moore\WPDOCS\stfrpts\051304chapmanson.wpd Staff Report Approval for Redevelopment Assistance totaling $70,000 by Chapman Enterprises, Inc. Page 2 May 13, 2004 Chapman Enterprises, Inc. now plans to rehabilitate this structure and relocate Chapman & Son to the new location. Michael Scott will remain at its current location. The new facility, 73-740 El Paseo, is much larger at 7,400 sq. ft., and will triple the size of the current store. This will allow for an expansion of the store and hopefully increased sales for one of the most successful menswear businesses on El Paseo. In addition, this new location has remained vacant on El Paseo for more than three years since its previous tenant, Comerford's Florist, went out of business. The costs for renovating the facades are estimated at $200,000. In addition, there will be an additional $75,000 of interior tenant improvements. Chapman Enterprises, Inc. is currently working with local architects, Prest Vuksic, and has received approval on the designs from the Architectural Review Commission. Chapman Enterprises, Inc.'s initial request for funding was $150,000. This exceeds the provisions of the Facade Enhancement Program, which would be limited $35,000 for this size facility. However, the applicant requested that the funding for $150,000 be given further consideration. Therefore, staff presented the request to the Retail Committee for its review and direction. The Retail Committee took into consideration the size of the new location, its extensive renovation, and the fact that there are two public entrances to the building. The committee did not want to set a precedent for such a large sum for this size building, but felt that the dual facade generated a need for additional funding. Since two facades exist at the one location, the Retail Committee suggests Redevelopment Agency assistance of $70,000, the equivalent of $35,000 for each facade. Staff concurs with the Retail Committee and recommends to Agency Board that they approve funding of the request in the amount of $70,000 and authorize staff to prepare an Owner Participation Agreement. This agreement will be placed before the Agency for approval. Submitted by: Approval: cCarthy, ACMiRed*elopment Paul S. Gibson, Director of Finance S. MWmh Carlos L. `O a, City Manager G:1BusCtrlRuth Ann Moore\WPDOCSIslfrpls1051304chapmanson.wpd CHAPMAN AND SON PROPOSED FACILITY 73-740 EL PASEO PALM DE'SERT, CA Facility Cost: $2)150,000 Estimate for Improvements (Vuksic): 500,000 Total Project Cost: 2)650,000 Agency Request for Assistance: 150,000 Ratio of Request/Project Cost: 6% J� R V� z 0 U) 06 z 5 CL