BusHsgDev Highlights 2009 0312 - Laserfiche WebLink

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r CITY OF SAN LEANDRO MEMORANDUM Date: March 4, 2009 To: Business and Housing Development Committee From: Luke Sims, Community Development Director Via: Cynthia Battenberusiness Development Manager By: Tim Ricard, Development Specialist Subject: RECOMMENDED CHANGES TO THE COMMERCIAL FACADE IMPROVEMENT PROGRAM In order to adapt the Commercial Facade Improvement Program to meet the needs of businesses during the current economic slowdown and to stimulate investment in the appearance of private businesses, staff recommends the Redevelopment Agency (Agency) approve altering the approved program reimbursement from 50% to 75% of the total project cost. Additionally, staff recommends streamlining the approval process by increasing the loan amount which can be approved by the Executive Director from $25,000 to $50,000. Recommended Temporary Increase to Percentage of Reimbursement Since the adoption of the Commercial Facade Improvement Program, Agency staff has received applications and worked closely to design facade improvements with 22 business and property owners and completed six projects (White House Catering, Sonoma's Restaurant, Tsuru Sushi, Planet Coffee, Nor-Cal Supply and Robert Jones Realty). The process of working with these businesses and property owners to complete high quality projects has been slower than expected. The process, which includes budgeting, design, receiving contractor bids and entering into legal agreements, can take a year to eighteen months. Due to the economic slowdown, many of these projects in the advanced planning and pre-construction phases are being postponed. The following projects, which have been designed and are ready for construction, have been postponed because the property and business owners are reluctant to spend money to due to reduced sales and concerns about the future. • Asia DelightJSandwitcheryBuildmg • Estudillo Center • Bayfab Metals San Gaspar Restaurant • CopyMat Liberty Tax • DC Dance Wells Fargo Mortgage • Eden Center In order to encourage private investment, staff recommends the Commercial Facade Improvement Program reimbursement be increased from 50% to 75% for the remainder of FY 2008-09 and FY 2009-10. Research on facade improvement program best practices shows that other nearby municipalities' contributions range from 50% to 100% of the project cost. Emeryville 75% up to $75,000 Alameda County 100% up to 25,000 and 66% from $25,000 to $80,000 Concord 66% up to $60,000 Oakland 50% up to $20,000