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Home My WebLink About07.A- City Manager DOC ID: 2963 C CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Information/Report From: Allen Parker M/CC Meeting Date: 06/02/2014 Prepared by: Georgeann"Gigi" Hanna, Dept: City Manager Ward(s): All Subject: Discussion of the Commercial Building Rehabilitation Program and Small Business Fagade Program of the HUD Action Plan (At Meeting of March 3, 2014, Item Continued to March 17, 2014; Item Continued to May 5, 2014; Item Continued to May 19, 2014; Item Continued to June 2, 2014) (#2963) Current Business Registration Certificate: Not Applicable Financial Impact: Account Budgeted Amount: «Inert Amount>> Account No. <<Insert Account No.» Account Description: <<Insert Account Description Balance as of. <<Insert Date>> Balance after approval of this item: <<Insert Amount>> Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred,but not yet processed. Motion: Complete the proposed substantial amendment to the 2013-2014 Action Plan from March 17, 2014, by designating $300,000 of Community Block Grant dollars for a Commercial Rehabilitation program. Synopsis of Previous Council Action: At its February 19, 2014 meeting, the Council voted to close the public hearing and adopt Resolution 014-38 as amended, approving the reallocation of funds to the Dangerous Building Elimination Program, Library Improvement Project, and Mobile Home Grant Program; and continuing discussion of the Commercial Building Rehabilitation Program, and the Small Business Fagade Improvement Program to the Council meeting of March 3, 2014. Due to a delay in getting the required information regarding the Commercial Building Rehabilitation Program, and the Small Business Fagade Improvement Program, staff is requesting a continuance to properly prepare a report on these items. Supportinp_Documents: Updated: 5/21/2014 by Linda Sutherland C Packet Pg. 305 I 5/19/2014 COMMERCIAL SB REHABILITATION PROGRAM City of San Bernardino Overview of the Problem •In 2006 the United States Conference of Mayor's Task Force on Vacant and Abandoned Properties developed its first publication on the successful strategies that mayors have developed to combat the problems posed by distressed residential and commercial properties. •In 2008 and 2009 the Conference re-published the report with additional descriptions of one or more "best practices"implemented by cities to address issues with vacant abandoned properties. Overview of the Problem (2009) •93%of the cities surveyed had an increase in the number of vacant and abandoned properties 83%of surveyed reported the mortgage crisis had affected their efforts relating to vacant and abandoned properties Half have changed local ordinances to require property and bank registration requirements/maintenance standards. •This issue is not going away on its own. 5/19/2014 Best Practices&Solutions •Chicago,IL uses a"Trouble Buildings Initiative"to transform abandoned units into productive affordable housing(in multi-family housing units). ". y ."r. .. ".:.. •1 r' u . Troublea Building Initiative(TBI) Z!,Swrses ..,.w ,wr..r:r..w.�,. sr....wrmr•...w..NN.rw,Nws.,.....»F.. r vi•I b. _ tP'q n•i�.tM!•_�n.4s•q'wrwtnr.ewFresl.eam.rr rNrerwra9uFwen pt�urbz e,b�.gf, .re m.x nTTx••evWnpe�iletw.NNxnxwrxar,trwOaeAe-..n..A.r rn x.rx rorr �feivq.eiu v.ry0ar Pt•Pq 0ma.dC'Yb ten.nt_wWm+er. +swxM •[•peadeuMy. `cxsF.nM.ew .LtM++<ed1imw�M.'fe+#vxgr .Ikxunru-ru(axXr4 Hnr+,4.n. Best Practices&Solutions -Tucson,AZ created a Vacant and Neglected Structures program to combat the growth it experienced along its outer edges and disinvestment in its older,more centrally located neighborhoods. �N120N� 2 1 5/19/2014 Stu ll�w TUCSON INVEST dt � AVA{IABLE COM1MIE RCIA4 iROYERIRS bdnRi M1aGSryinBrN1 M E.BROADWAY REILLY BUILDING-SECAND FLOOR OGFI[E Awl Best Practices Comparison Best Practice San Bernardino I. Vacant lot registry, t. Police/Code Enforcement Several Cities Operations 2. Cleaning and Boarding, z. Crime-free Multi-Family Baltimore,MD Housing Program 3. Problem Targeting, 3. Federally funded housing Buffalo,NY programs(CDBG,HOME, a. Vacated Building NSP&ESG) Maintenance Licensing a. City partnerships Program,Cincinnati,OH Commercial Building Rehabilitation Program •The purpose is to assist the beautification and improvement of commercial properties in the City of San Bernardino in order to enhance business conditions,preserve historic structures,or eliminate blight. 3 5/19/2014 I Eligibility -The program will assist either property owners or business owners leasing property through a matching effort not to exceed 50%or$50,000 in San Bernardino. r ustain I m p rove r dentify Types of Projects •Handicap accessibility •Roofing/other physical improvements •Signage •Exterior Lighting •Fagade Improvements and approved siding •Windows •Painting •Masonry Application Process •Pre-Application Process •Staff Evaluation •Formal Application Process Award Grant •Project Completion Inspection t ilf �Q �.� CD(:D 4 5/19/2014 Program Plan Current proposed program is targeted at exterior beautification for owner occupied businesses. •Owners,or potential owners,can"stack"other business retention programs available through the City to finance larger economic development projects. Bank Loan(50%) $500,000 $2923(5%) CDC Loan(40%,including fee) $400,000 $2813(5.45%) BonrowerDOwn(10%) $100,000 $0 Fees(Financed) $5,000 $0 Fees(Paid) $5,500 $0 Total $1,010,500 $5,376 Financing Growth PACE Program SBA 504 Loan Provides capital for •Provides financing for the environmentally friendly purchase of fixed assets, products and services. typically real estate,building All commercial property and machinery at below types are eligible. market rates. •Owners invests 10%, Certified Development Company invests 40%and convention lender invests i 50% i COMMERCIAL BUILDING REHABILITATION PROGRAM City of an Berna,dino 5