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REDEVELOPMENT AGENCY OF <br />THE CITY OF SAN LEANDRO <br />STAFF REPORT <br />DATE: Apri120, 2009 <br />TO: <br />FROM <br />VIA: <br />BY: <br />Stephen L. Hollister, Executive Director <br />Luke Sims, Community Development Director <br />APPROVED AND <br />FORWARDED TO THE <br />REDEVELOPMENT AGENCY <br />Stephen L. Hollister <br />Executive Director <br />Cynthia Battenberg, Business Development Manager <br />Tim Ricard, Development Specialist <br />SUBJECT PROJECT/PROJECT DESCRIPTION: <br />MATTER OF APPROVAL OF AMENDING THE AWNING, SIGN AND PAINT PROGRAM <br />AND THE COMMERCIAL REHABILITATION PROGRAM TO INCREASE AGENCY <br />CONTRIBUTION FROM 50% TO 75% AND ALLOW APPROVAL BY THE EXECUTIVE <br />DIRECTOR FOR LOANS UP TO $50,000. <br />SUMMARY AND RECOMMENDATION <br />In order to adapt the Awning Sign and Paint Program and the Commercial Rehabilitation <br />Program to meet the needs of businesses during this recession and stimulate investment in the <br />appearance of private businesses, staff recommends the Redevelopment Agency (Agency) <br />approve altering the approved program reimbursement from 50% to 75% of the total project cost <br />and streamline the approval process by increasing the loan amount which can be approved by the <br />Executive Director from $25,000 to $50,000. <br />BACKGROUND <br />In June 2007, the Agency approved the current Facade Improvement Program in order to create a <br />source of capital accessible to small businesses and property owners to upgrade the aesthetic <br />appearance of their property in an effort to revitalize and create vital commercial corridors. <br />There are two different program types under the larger Facade Improvement Program umbrella: <br />the Commercial Rehabilitation (CR) Program, which provides a matching forgivable loan of up <br />to $50,000; and, the Awning, Sign and Paint (ASAP) Program, for smaller projects, which <br />provides a matching forgivable loan of up to $10,000. Funds are reimbursed to businesses based <br />on receipts for up to 50% of approved expenditures and are provided in the form of a 10-year <br />forgivable loan. The Agency holds a Deed of Trust and Promissory Note, which (assuming the <br />owner complies with all provisions set forth in the agreement) is released at the end often years. <br />Since the adoption of the program, Agency staff has received applications and worked closely to <br />design facade improvements with 22 business and property owners and completed six of the <br />