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HomeMy WebLinkAboutBlock Grant Program - 2014 - 2015 . � � �cfober 6 2014 `wr,r� Renton Citv Council Minutes '�r+� Pa�e 290 � The following ordinance was presented for first reading and referred to the 10/13/2014 Council meeting for second and final reading: Attorney:Subsection 1-2-1.E., An ordinance was read amending Section 1-2-1 of Chapter 2, Ordinances,of Clarifying Applicability of Title I (Administrative),of City Code,clarifying the applicability of modifications Modifications to RMC to the Renton Municipal Code. MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 10/13/2014. CARRIED. NEW BUSINESS MOVED BY PERSSON,SECONDED BY CORMAN, COUNCIL APPROVE THE CED:Amended 2014 and 2015 AMENDED 2014 CDBG FUNDING PLAN TO ALLOCATE$78,717 FOR CDBG Funding COMMERCIAL REHABILATION ACTIVITIES;APPROVE THE 2015 CDB"G FUNDING Recommendations PLAN TO ALLOCATE$630,727 FOR KING COUNTY CONTRACTUAL SET-ASIDES, � CITY PLANNING/ADMINISTRATION,AND COMMERCIAL REHABILITATION AND / � I�C7, � PUBLIC INFRASTRUCTURE ACTIVIES AS RECOMMENDED BY CITY STAFF;AND APPROVE THE 2015 CDBG FUNDING CONTINGENCY PLAN TO EQUALLY SPLIT ANY INCREASE OR DECREASE OF HUD ALLOCATION AMOUNTS BETWEEN COMMERCIAL REHABILATION AND PUBLIC INFRASTRUCTURE ACTIVITIES. CARRIED. ADJOURNMENT MOVED BY PERSSON,SECONDED BY PRINCE,COUNCIL ADJOURN. CARRIED. Time: • 9 p.m. - � Jaso A. Seth,C C,Acting City Clerk Jason Seth, Recorder October 6,2014 October 6, 2014 ' �,,.,r` Renton Citv Council Minutes '� Pa�e 285 • Mayor law, noting that mothers,aunts,and grandparents of victims of domestic violence from the Renton community were in the audience, emphasized that this is an important and serious topic that needs to be addressed. He stated that Renton will continue the battle to end domestic violence in the community. He added that public awareness is an important part of the campaign. Fire Prevention Week— A proclamation by Mayor Law was read declaring October 5 to 11,2014 to be October 5 to 11,2014 "Fire Prevention Week" in the City of Renton, and encouraging all citizens to join in this special observance. MOVED BY PERSSON,SECONDED BY PRINCE, COUNCIL CONCUR IN THE PROCLAMATION. CARRIED. Fire and Emergency Services Administrator Mark Peterson and Fire Marshal Anjela St.John accepted the proclamation. Fire Marshal St.John reported that three out of five home fatalities occur where there is no working smoke alarm. She stated that this year's fire prevention campaign focuses on encouraging citizens to test their smoke alarms monthly. SPECIAL PRESENTATION Public Works Administrator Gregg Zimmerman reported that Renton is in the Utility: Puget Sound Energy process of replacing nearly 4,000 high-pressure sodium street lights with light- Grant emitting diode (LED) lights. He remarked that the City is on track to reduce street light power bills by approximately$250,000 a year. Mr. Zimmerman added that Renton received a $50,000 conservation grant from the Washington State Department of Commerce and a$589,409 grant from Puget Sound Energy for this project. He thanked City staff and other agency personnel who helped make this project a success,and invited Andy Wappler, Puget Sound Energy's Vice President of Corporate Affairs,to present the grant check to the City. Mr.Wappler presented a grant check in the amount of$589,409 to the City. He remarked that in addition to the cost and energy savings from these LED lights, Renton will benefit from fewer maintenance hours and improved public safety. He invited Jessica Raker, Puget Sound Energy's Emergency Management Engineer,to explain more about the project. Ms. Raker reported that Puget Sound Energy is helping to fund the replacement of approximately 4,000 street lights in Renton. She stated that the new lights save three million kilowatt hours annually,which is enough energy to power 300 homes. PUBLIC HEARING This being the date set and proper notices having been posted and published in CED:Amended 2014 and 2015 accordance with local and State laws, Mayor Law opened the public hearing to .---. Community Development consider the amended 2014 and the 2015 Community Development Block Block Grant Funding Grant(CDBG)funding recommendations. Recommendations / Community Development Project Manager John Collum reported that CDBG P� �d���`� funds are allocated by the Department of Housing and Urban Development (HUD)and are received through an interlocal agreement with King County. He stated that the administration is seeking approval of an amendment to the City's 2014 CDBG plan and approval of the 2015 funding plan. Mr.Collum explained that staff is recommending that$78,717 in unallocated CDBG funds from 2014 be utilized for economic development activities,and the allocation of approximately$630,000 in 2015 CDBG funds be utilized for King County contractual set-asides,City planning and administration,and economic development activities. Octbber.6. 2014 � Renton Citv Council Minutes � Pa�e 286 • Mr.Collum reported that in past years, CDBG funds have been primarily utilized for Human Services programs such as the City's Housing Assistance Repair Program. He explained that the administration is recommending that unallocated 2014 funds and a portion of the 2015 CDBG funds be utilized for economic development activities,and 2015 General Fund money be used to support Human Services programs that are currently funded by CDBG dollars. He further explained that Human Services programs will continue to operate as they currently do, but with a change of funding source to the General Fund. Mr.Collum reported that the CDBG funds can be repurposed to support commercial rehabilitation and public infrastructure improvements to spur private development. He stated that grants and loans with favorable terms can be used as incentives to encourage physical improvements and correct code violations,as well encourage the creation of jobs. He added that the resulting improvements would also benefit residents of the surrounding neighborhoods, including low-and moderate-level income households that depend upon the goods and services provided within their immediate communities. He pointed out that the City has heard from local property and business owners that incentive programs are needed to assist with building improvements that are necessary to attract private investment and new businesses into downtown Renton. Mr.Collum reported that the administration has created the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan program. He explained that the primary goals of the program are to encourage investment in downtown Renton, achieve significant visual improvements in its built environment, and improve downtown Renton's overall health and safety. He stated that the program will target funding to incentivize and assist property and business owners to move forward with projects that promote the rehabilitation of commercial buildings,to improve fa�ades, and upgrade existing buildings to bring them into compliance with current code. Mr.Collum reported that residential uses within mixed-use projects would not be eligible for the program. He stated that interested borrowers with eligible projects would be required to submit an application package to be considered for funding. He added that the loans are potentially forgivable if all program requirements have been completed and the loan recipients are in good standing. Continuing, Mr.Collum reported that the administration would consider funding public infrastructure projects related to the commercial rehabilitation projects and revitalization efforts within the greater downtown area. He remarked that improvements made to the public realm could include items such as sidewalks,streets,street lights, landscaping,street furniture, and drainage. Mr.Collum reported that the use of CDBG funding for commercial rehabilitation and public infrastructure eligible activates must also meet national objectives in accordance with HUD regulations. He stated that the City must designate which national objective is being met,and explained that the City is meeting the CDBG program's national objective of benefitting low-and moderate-income persons on an area basis. . October,6, 2014 "�,rr+' Renton Citv Council Minutes `wr'` Pa�e 287 • Mr. Collum reported that the area benefit objective requires that at least 51% of the residents residing in a primarily residential area are low and moderate income persons. He explained that the administration utilized recent census data and determined that the combined downtown and south Renton subareas,as designated in the City Center Community Plan, have approximately 62%of the residents that are within the low and moderate income levels. He further explained that the combined subareas form an urban community where commercial needs can be accessed by residents through a variety of transportation nodes including walking, biking, driving short distances,or using public transit. Concluding, Mr.Collum reiterated that staff is recommending that$78,717 in unallocated CDBG funds from 2014 be utilized for economic development activities,and the allocation of approximately$630,000 in 2015 CDBG funds be utilized for King County contractual set-asides,City planning and administration, and economic development activities split evenly between the rehabilitation loan program and the infrastructure projects. Mr.Collum also noted that King County requires a funding contingency plan in the case that HUD provides an increase or decrease in the allocation of funds. He reported that the recommendation is that the decrease or increase of funding be split evenly between the rehabilitation loan program and the infrastructure projects. Council President Persson stated that he was initially concerned that this change would mean a reduction in funding to the City's partners that provide needed human services programs in the community. He emphasized that this change does not reduce funding; it only changes the funding source for these programs. He added that he believes this new program will also assist the City in achieving the goal of revitalizing and attracting new businesses in downtown Renton. Public comment was invited. Kathy Powers(Seattle) remarked that she was under the impression that this hearing was also about funding recommendations for human services agencies. Mayor Law stated that Ms. Powers could speak during the Audience Comment portion ofthe meeting. ChiefAdministrative OfficerJay Covington also noted that Ms. Powers could speak at the 2015/2016 Biennial Budget public hearing scheduled for October 20,2014. There being no further public comment, it was MOVED BY PERSSON, SECONDED BY PRINCE, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. (See page 290 for further information on this topic.) ADMINISTRATIVE REPORT Mayor Law invited Urban Forestry and Natural Resources Manager Terry Flatley to the podium to speak about the upcoming City-wide tree pruning and removal project. Mr. Flatley announced that Governor Jay Inslee has declared October to be Urban Forestry Month in the State of Washington. He remarked that he is privileged to serve as the City representative on the Washington Community Forestry Council which is an advisory board for the Washington State Department of Natural Resources. He added that Renton is on track to receive its seventh Tree City, USA award in 2014. 2���"����� C�g CI" �t.I.YIG�f.��' ��/'F71�'l��!_DYI�S �genda Item No.: 5. , �rrr�` �r,,,�` RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET (Page 1) CITIZENS MUST PROVIDE NAME AIVD ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE� DATE: �0 6 �d �L PLEASE PRINT 5 Minute Time Limit 1 5 Name: ,�`-�" r����J c.l� —�`j Name: Address: (��10 � � �� y Address: City: �t-i��tl�y� Zip Co ._ �n� City: Zip Code: Email: �" �lr`'I�IrI(•���5 C ��1U� Email: Topic: ��p� ���,.ti�cJ\ Topic: 2 6 Name: Name: Address: Address: City: Zip Code: City: Zip Code: , EmaiL• Email: Topic: Topic: 3 7 Name: Name: Address: Address: City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: 4 g Name: Name: Address: Address: City: Zip Code: City: Zip Code: EmaiL• EmaiL• Topic: Topic: (CONTINUED ON REVERSE SIDE) a � � . (Continued from Reverse Side- Page 2) RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE PLEASE PRINT 5 Minute Time Limit 9 13 Name: Name: Address: Address: City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: 10 14 Name: Name: Address: Address: City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: 11 15 Name: Name: Address: Address: City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: 12 16 Name: Name: Address: Address: City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: � � ' DEPARTMENT OF COMMUNITY D o c�ryof & ECONOMIC DEVELOPMENT ����O� ��� M E M O R A N D U M DATE: October 2, 2014 � T0: Don Persson, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: Chip Vincent, Community& Economic Development Administrator���v`'"'T STAFF CONTACT: Cliff Long, Economic Development Director John W. Collum, Community Development Project Manager SUBJECT: Changes to Community Development Block Grant (CDBG) Plan On September 15, 2014, City Council approved setting a public hearing on October 6, 2014 to consider approving the amended 2014 CDBG plan and the 2015 CDBG allocation of funds (Agenda Item 6b). Attached to the item's Agenda Bill were three exhibits (Issue Paper, Rehabilitation Loan Program Description Draft, Downtown Business District Map), which were provided to the Council President and Members to provide some background on the proposed CDBG approvals. Leading up to the October 6t" public hearing, staff from the Community& Economic Development and Community Services departments have been reviewing options with King County CDBG staff to utilize an alternative national objective that must be met for the City's proposed economic development activities to qualify for CDBG funding. We have determined that using the "Low- and Moderate-Income Area Benefit" objective as opposed to the "Low- and Moderate-Income Jobs" and "Addressing Slums or Blight on a Spot Basis" objectives is preferable. The area benefit objective requires that at least 51% of the residents residing in a primarily residential area are low-and moderate-income persons. Utilizing recent census data, we have determined that the combined Downtown and South Renton subareas of the City Center Community Plan meet this requirement. This determination would allow staff to more easily administer the proposed economic development activities by simply utilizing the census findings. Use of the other objectives which would require significant job tracking and/or property surveying exercises throughout the administration process. Don Persson,Council President � � Members of Renton City Council � '� , Page 2 of 2 October 2,2014 Staff has revised the September 15th exhibits to reflect use of the area benefit objective, as well as expansion of the target area for CDBG-funded economic development activities from the Downtown Business District to the larger powntown/South Renton area. We request that the attached exhibits be utilized in your consideration of Item 5 on Council's October 6th Regular Agenda. cc: Jay Covington, Chief Administrative Officer Attachments: Issue Paper (Memorandum dated October 2, 2014) Draft-Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program Map-Downtown &South Renton Combined Subareas , , '�Wr'"' �,,,_ ' DEPARTMENT OF COMMUNITY p ^c=ty�f�O� .'.,�: & ECONOMIC DEVELOPMENT ��1 � M E M O R A N D U M DATE: October 2, 2014 T0: Don Persson, Council President Members of Renton City Council VIA: Denis Law, Mayor � FROM: Chip Vincent, Community& Economic Development Administrator��/� STAFF CONTACT: Cliff Long, Economic Development Director John W. Collum, Community Development Project Manager SUBJECT: Amend the 2014 Community Development Block Grant (CDBG) Plan and Allocation of 2015 Funds ISSUE: Should the City of Renton use a portion of its CDBG funds for economic development activities? RECOMMENDATION: Approve the amended 2014 CDBG plan and the allocation of 2015 CDBG funds for human services and economic development activities. BACKGROUND SUMMARY: Commercial building rehabilitation and public infrastructure improvements are common activities in any community's economic development program to spur private investment. Cities throughout the country have developed programs where property and business owners are offered grants or loans at favorable terms. The grants or loans are used as incentives to encourage physical improvements and correct code violations that combat blighting conditions in existing buildings, as well as to encourage the creation of jobs. The resulting improvements will also benefit residents of the surrounding neighborhoods, including low- and moderate- income households that depend upon the goods and services provided within their local communities. The City of Renton ("City") is interested in creating a program that provides financial assistance as an incentive for owners in Downtown Renton to rehabilitate their buildings. Such a program would encourage private investment in Downtown, provide marketable space for new and . , Don Persson,Council President � ' Members of Renton City Council '�P" "+� ` Page 2 of 3 . October 2,2014 expanding businesses, achieve significant visual improvements, and improve Downtown's overall health and safety. Federal CDBG funding can be used for economic development purposes such as commercial rehabilitation and public infrastructure improvements. Each specific project to be funded through CDBG must be an eligible activity under the Housing and Urban Development Department regulations ("HUD regulations"), meet a national objective in accordance with HUD regulations, and comply with the City's joint agreement for CDBG funding with King County ("Joint Agreement"). An interdepartmental team recommends that the City repurpose its allocation of CDBG funds (approximately$397,000 per year) for such economic development activities in 2015, and use one-time General Fund money to support human services programs currently funded by CDBG funding. The programs, including support for human services agencies and the City of Renton Housing Repair Assistance Program, will continue to be operated as they currently are with a change to General Fund funding. In 2014, there is an estimated $78,717 in unallocated CDBG dollars that can be utilized for economic development activities. For this purpose, the Community & Economic Development Department has created the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Rehab Loan Program;" see attached description). The Rehab Loan Program will target funding to incentivize and assist property and business owners to move forward with projects that promote rehabilitation of commercial buildings to improve fa�ades and upgrade existing buildings to bring them into compliance with current codes. Generally, the Rehab Loan Program will provide a minimum of$10,000 in assistance per property, offered in the form of a forgivable loan which must be matched dollar for dollar by the applicant. Owners of properties or businesses (with landlord consent) located within the Downtown and South Renton subareas (as designated in the City Center Community Plan) are eligible. The combined subareas are defined as properties generally bounded by Rainier Avenue/Shattuck Avenue South (west), South 7th Street/Grady Way (south), Main Avenue South/Houser Way (east), and the Cedar River/South Tobin Street (north). Residential properties or residential uses within mixed use projects are not eligible. Interested borrowers with eligible projects will be required to submit an application package to be considered for funding. In 2015, the City is estimated to receive $630,272 in CDBG funds. The allocation after contractual set-asides per the Joint Agreement is estimated to be$397,072. The contractual set-asides consist of County Administration of$63,027, County Capital Administration of $12,605, Housing Stability.Program (provides rent and mortgage assistance to prevent individuals or families from eviction) funding of$31,514, and King County Housing Repair Don Persson,Council President " Members of Renton City Council � �; Page 3 of 3 October 2,2014 Program (provides interest free loans and emergency grant services to low and moderate income home owners to repair their homes) funding of$126,054. Of the $397,072 remaining after set-asides, the City is proposing to use $63,027 or the maximum amount allowed for Planning and Administration. The remaining balance of$334,045 is proposed to be used to provide additional funding to continue the Rehab Loan Program, as well as support public infrastructure improvements related to commercial rehabilitation and revitalization efforts within the greater powntown/South Renton area. Specific infrastructure projects to receive CDBG funding will be determined in conjunction with projects submitted for Rehab Loan Program consideration and identified needs in the Downtown/South Renton area. The human services programs that are currently funded by CDBG dollars—Housing Repair Assistance Program and three human services programs managed by the Community Services Department—are recommended to be funded by the General Fund starting in 2015. The programs' 2015 costs are collectively estimated to be $240,438. One-time audit settlement money available in 2014 is anticipated to be used to allow the General Fund to backfill the housing and human services programs in 2015. Assuming the City will continue to utilize the General Fund to support these programs beyond the 2015 one-year trial basis and throughout the three-year period that the Joint Agreement covers (2015-2017),the City will need to identify another General Fund revenue source to continue funding these programs in 2016 and 2017 if its CDBG allocation will continue to support economic development activities during those years. The Housing Repair Assistance Program will have greater flexibility and efficiency with the proposed funding change. Federal and county regulations increase the amount of time devoted to paperwork substantially. With the change to General Fund funding,this time can be spent doing repairs instead. CONCLUSION � CDBG funds can provide a source of funding for economic development activities in the downtown area to incentivize improvements to commercial buildings and public infrastructure in 2014 and 2015. The improvements are expected to create additional economic opportunities and stimulate reinvestment in the Downtown/South Renton area, which has been deemed a priority area for economic development. Furthermore, the improvements will benefit the area's residents, including low- and moderate-income persons. cc: Jay Covington, Chief Administrative Officer Larry Warren, City Attorney Garmon Newsom, Senior Assistant City Attorney Iwen Wang, Administrative Services Administrator i ' 10/06/2014 , ,,�„ � �,��� ��a; � � �w ��, : � ��, Public Hearing Community Development Block Grant Funding: 2014 Amendment & 2015 Allocation Presented to the Renton City Council October 6,2014 Agenda Item 5 " Gk7'af, � ` ��.� �. �.�w���� �r';�, +`•� • 4 �, �� �r t,, Community Development Block Grant (CDBG) Fund Allocation Summary � 2014: Utilize $78,717 in unallocated CDBG funds for City economic development activities • 2015: Utilize $630,272 in new CDBG funds for King County contractual set-asides, City planning and administration, and City economic development activities ..--------_ �' r CttY Of. .� ------' 1� i'�.��i � � 7"� R ., ` 1 � � � ;� 10/06/2014 ' . + ,�,, � � City Economic Development Activities � Purpose - Shift of utilizing CDBG funding for human services programs to economic development activities • Programs - Incentivize and assist property owners to rehabilitate commercial buildings - Improve public infrastructure -- ____ --� c��r. . , 7-- `� ��.��f�� �-:� •�.�.: � �� r �, � � �..� � k .; Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program • Minimum $10,000 in loan assistance • Must be matched dollar for dollar • Up to 5-year term with 0% interest • Eligibility: -- Owners of properties or businesses (with landlord consent) -- Located within Downtown and South Renton subareas • Application package required • Loan potentially forgivable based upon performance -_._.. �,,�� c;ry of. '"'' ---n"'""""'��EJ t���.��'��� :,'i : 2 � ', ,�r, � 10/06/2014 ^�� ;�. : �,. �,, �� ..:... � r;h .;=; : } +�.,., .4 � t .; �o�rn�o�in/��outh t��ntc�r� �mb�nec� �ubareas �a�� ��� �. o �, �,„, w c«�«w�w�,w� l,�--�.-- ..:.... .�s-..-..�—.� � .----"" '�l�'SY t�:tl� ; .� . S � ��a....�a.M.c.w•rir..�. ; 'n 3� � � � � � ,;�. � a n �#^ c& b� ;rN'wr �� a`�.s �m�w�x�.S.��a.�.': Public Infrastructure • Improvements related to commercial rehabilitation projects and overall Downtown revitalization efforts • Sidewalks, streets, streetlights, streetscape, drainage, water, sewer, accessibility _, _�,�, ��� �,� , _! I� ����'"' �� • � � ,J .�?� �� � �, .;.�.�- 3 } 10/06/2014 ,' �d' � • . ��q � ��`� y{�r�".�+��,t e �'s�,� ;5 . .. CDBG Funding Plan � �,. . .� � �� ���iJ ,�yj k i S �fi `�� �.:�*����� �,y^� '� �';}� � :u-# �'� "��,['y�f *. . :���+F a � „ �; '� ��; �,- �'���,, �' �_��"� ,���� �" 2015 King County Contr�ctua}Set-asides Not Applicabte - Genera[Administration $63,027 - Capital Administration $12,605 -, Housing Stataility Program $31,514 - Housing Repair Program 125 054 Subtotal $233,200 � 171����#�-�� �.k �'''�������K? ; t $,..::� ��;. Commercial Rehabilitation Low=and Moderate-Ucome Area Benefit $167,023 �� � � � a� r � �` �� ��� z. � {3:�� � g� ��. � ��r�^�'�P'° t.k� � ;0.� k�,� „;`�1� t�� a . t. ,. ..s� .I^�_ .. .. ..... . .,„ , i,1�c. .. �K�' . . 2015 Total� � � � � � $630,272 �-------- i��� .������� �r�� •A��• 1 Funding Contingency Plan • King County requires a Funding Contingency Plan if the Housing and Urban Development Department ("HUD") allocation is greater or less than the 2015 anticipated amounts • City's Funding Contingency Plan is to equally split any increase or decrease of final amounts between the Commercial Rehabilitation and Public Infrastructure activities --------____,. 4Y r Clh'Of :� .. � * � - ---='' ���:,�'���� � 4 � , v.r� �,.� 10/06/2014 . . ' •Ft: S' .t# Recommended Action • Approve the amended 2014 CDBG Funding Plan to allocate $78,717 for Commercial Rehabilitation activities; • Approve the 2015 CDBG Funding Plan to allocate $630,272 for King County contractual set-asides, City planning/administration, and Commercial Rehabilitation and Public Infrastructure activities as provided in the staff presentation; and • Approve the 2015 CDBG Funding Contingency Plan to equally split any increase or decrease of HUD allocation amounts between Commercial Rehabilitation and Public Infrastructure activities. -_�-� GicyaE, "�� ' ��'��.,���'��:�,� 'r���.: 5 t �i • '�,,,+'' �+ DRAFT DOWNTOWN COMMERCIAL REHABILITATION AND FA�ADE IMPROVEMENT LOAN PROGRAM Modernized and attractive buildings support and encourage local businesses and business development within a commercial, mixed-use district. The presence of underutilized,vacant or generally dilapidated buildings within an area generally reduces the appeal and marketability of it as a viable commercial district. Attractive storefronts, updated buildings and well-maintained historic structures, supporting a variety of commercial uses, have a significant positive effect on the marketability and livability of the surrounding area. Healthy commercial districts benefit residents of the surrounding neighborhoods, including low-and-moderate income persons, by providing goods and services that are readily accessible. Investment in Renton's Downtown and South Renton subareas (as designated in the City Center Community Plan) and the improvement and enhancement of their buildings will promote greater retail and pedestrian activity and improve their economic viability. The City of Renton ("City") believes that it is in the public's best interest to improve the aesthetics and physical quality of these subareas in order to stimulate reinvestment. Improvement and restoration of fa�ades of privately-owned commercial buildings, along with updating them to meet current codes,would assist in removing blight and deterioration that impedes economic growth, stimulating additional private investment in the buildings and the surrounding area,and creating jobs. Most importantly,the investment and improvements will benefit the residents of the subareas by expanding and strengthening their options for goods and services. The City has earmarked Community Development Block Grant("CDBG")funding to assist with its economic development efforts. Funding will be targeted to assist projects that will promote rehabilitation of commercial buildings to improve fa�ades and upgrade existing buildings to bring them into compliance with current codes, with the goal of stimulating additional private investment and creating additional economic opportunities. A financial incentive will be offered to business and property owners in the form of a zero percent interest loan,which must be matched dollar-for-dollar by the applicant and may be forgivable subject to performance. All financial assistance will be provided on a first-come, first-served basis (upon meeting eligibility requirements)while funding is available. Program Goals and Objectives The primary goals of the City's Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Program") are to encourage investment in Downtown, achieve significant visual improvements in its built environment,and improve Downtown's overall health and safety. In particular,the commercial rehabilitation activities funded through the Program will meet the CDBG program's national objective of benefitting low-and moderate-income persons on an area basis. The combined Downtown and South Renton subareas are located within three census tract block groups (Nos. 53 033 025300-3, -4 and -5) where at least 51%of the residents are considered to meet low-and moderate-income levels as defined by U.S. Housing and Urban Development Department ("HUD") guidelines. Collectively,the combined subareas are primarily residential, but include a significant number of commercial buildings with businesses that serve the residential population. The building improvements to be provided through the Program's funding are anticipated to expand and strengthen the variety of goods and services available to all of the area's residents, as well as other City residents. The combined subareas form an urban community where commercial needs can be assessed 1 a �r � • � by residents through a variety of transportation modes, including walking, biking, driving short distances or using public transit. The Program further seeks to promote economic development by providing an ' incentive for property and business owners to renovate their buildings for occupancy by new or expanding businesses. Successful outcomes wili produce updated commercial structures meeting current code requirements and storefronts that will attract retail, eating and drinking, and other pedestrian-oriented establishments. Program Details Available Program • For 2014,$78,000 has been programmed by the City for investment. Funds • Up to$7,500 is reserved for architectural design review consultant services to the City as applicants submit projects for consideration. Eligibility Location: Property must be located within the Downtown or South Renton subareas as designated within the City Center Community Plan (see boundaries on attached map). Applicants: • For profit or nonprofit operating businesses(new or existing) seeking to locate or expand (with landlord consent if not property owner). • Owners of existing property(vacant or occupied) with a re-use plan. • All property taxes and business license fees must be current in order to participate in the program. Activities: • Overall renovation and improvement of existing commercial building facades, including windows, doors,walls, roof, paint, awnings, signage, light fixtures, etc. • Upgrades or rehabilitation to bring existing building into compliance with current codes(correcting existing code violations). • Off-site construction of frontage or infrastructure upgrades that are a requirement of a city-approved development plan. • Soft costs (professional fees, consultant studies, property reports, etc.) related to eligible activities above. Loan Terms and • Up to five-year term with zero percent interest. Conditions • Forgivable at end of term if all Program requirements have been completed and the loan recipient is in good standing. • Evidence of matching funds must be provided at time of funding approval. Potential Loan Amount Individual project loan amount must be a minimum of$10,000, and maximum amount subject to eligibility and available funds. The actual loan amount must be matched by the applicant dollar-for-dollar through other exterior/interior building improvements or with site improvements. Fees • Application Fee of$200.00. • Loan Origination Fee of$150.00, or 0.25%of the actual loan amount, whichever is greater. • Closing Costs(including any legal fees) of 50%of total actual costs. Occupancy Any applicant business that qualifies with landlord consent must possess a Requirements valid lease that is at least co-terminus with the term of the funding loan. 2 ,� .�r • � � CDBG Requirements Property must be located within the Downtown or South Renton subareas, ' which are located within an area in which at least 51%of the residents are considered to meet low-and moderate-income levels as defined by HUD guidelines. Important Process • Applicants receiving loan funding will be required to execute a legally Items binding agreement with the City containing terms that comply with HUD's CDBG program guidelines. • Loans generally will be funded upon completion of project improvements and City inspection approvals; however, consideration can be provided for a portion of the funding to be paid prior to completion depending upon the needs of the applicant and its project. • Loans will be secured by a deed of trust recorded on the property's title and an unlimited guarantee of the principal owners of the property or business (depending upon borrower). Application Process Interested applicants will be requested to submit an on-line application form that will include (at a minimum)the following information: a. Proposed borrower entity(including entity type, background, number years in existence or, if new,formation status). b. Detailed project description - number of square feet to be renovated/acquired/leased,types of uses, description of intended occupant businesses. c. Status of leasing if building includes tenant space—provide signed agreement or letter(s) of intent (LOIs)when available. d. Description of physical architectural barriers to access and plan for remediation (if applicable). e. Preliminary proposed budget with listing of other funding sources and status (proposed, in review, committed). Following initial intake screening, project applicants will be requested to provide additional information for financial review. Info may include any of the following: a. Preliminary project timeline with key milestones. b. Development team qualifications. c. Building inspection report. d. Preliminary schematic design plans. e. Third party cost estimate with a detailed scope of improvements. f. Updates to detailed breakdown of sources and uses and status of other financing sources (Proposed/Committed/Timing for Commitment). g. Financials and tax returns for borrowing entity. h. Evidence of site control or description of acquisition plan. i. Environmenta) reports as requested (dependent on project scope). Following receipt of additional information and staff review, loan applications will be submitted to a Program Loan Committee for funding approval. The Program Loan Committee is anticipated to consist of representatives from the City's Fiscal Services and Economic Development divisions, an outside lending institution,and/or a financial consultant. For further information, please contact lohn W. Collum, Community Development Project Manager, at (425)430-6589, or icollum@rentonwa.�ov. 3 t .� ,,.,,.� .� �.. � , ...i . � ,� ;•- . .. ... . .,,;.�c'.:". -`---� � ' }:� ' .. .. "i ky-.... _ .� . 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'l�l . ../ . . . �y:.:> ,�a�= I 1 il_____J : 1 G3� 4 I 4�.., t # .is. ib. ,� �,� r • 1 • �.• - �• • • � i • • r � � ;,�„z 10/06/2014 Public Hearing Community Development Block Grant Funding: 2014 Amendment & 2015 Allocation Presented to the Renton City Council October 6,2014 Agenda Item 5 — _____� ,.+ o ���/��^ Cc�°��t�� � —���.�..��""", �'� a�) .E E��t) � '�en Community Development Block Grant (CDBG) Fund Allocation Summary • 2014: Utilize $78,717 in unallocated CDBG funds for City economic development activities • 2015: Utilize $630,272 in new CDBG funds for King County contractual set-asides, City planning and administration, and City economic development activities _____.. Clty'Of :.��y ri � /�r � *� � �*'� � -_.._.__...�....��"!� {,�'����^� 1 r , „�,,. ,� 10/06/2014 �� �v City Economic Development Activities • Purpose — Shift of utilizing CDBG funding for human services programs to economic development activities • Programs — Incentivize and assist property owners to rehabilitate commercial buildings — Improve public infrastructure — �. :� ° � �,.�x� -� � �--��........�/""'�'�* �'�� ��f�;�� ;. �.: ��, Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program • Minimum $10,000 in loan assistance • Must be matched dollar for dollar • Up to 5-year term with 0% interest • Eligibility: -- Owners of properties or businesses (with landlord consent) -- Located within Downtown and South Renton subareas • Application package required • Loan potentially forgivable based upon performance -----___ c�ry``oyy,,r� '` • "�.��..�����M�� I��r�k����� 4�� •y�'�,• . in��' 2 , , � ,�, 10/06/2014 �, Downtown/South Renton Combined Subareas Downtmvn i�otAh R�nwn Corr�bir»d Stib�nas , A. 0 E00 �17� N �«��.r�`�...*.r �r�+ �1 � .."_"�"�I3���'.,�.���.�.��. ,. �Dow�wefilMa�CMMWwa • � ..... __ ._.,.. __.. .._.. .,.....,..,._ .. � , . Yf.,M1.�l. 1:. Public Infrastructure • Improvements related to commercial rehabilitation projects and overall Downtown revitalization efforts • Sidewalks, streets, streetlights, streetscape, drainage, water, sewer, accessibility �,,� c��� u,.�,� ,. ,� �,�, �_. ,� . � ......__.�....J�`" I���:�����C� � ,� ,�' 3 � � � 10/06/2014 , CDBG Funding Plan t'd� • •� �� ���� �oi��rci�!����il��c��a. ;I,a�r-����derat��tn�i�i�e Ar�a�3en�t �38,�`�7'` 2015 King County Contractual Set-asides Not Applicable - General Administration $63,027 - Capital Administration $12,605 - Housing Stability Program $31,514 - Housing Repair Program 126 054 Subtotal $233,200 City t�t�nn�t���r+tt�4clmini��icrn Nnt l�ppl�tabl� '�63,Q27 Commercial Rehabilitation Low-and Moderate-Income Area Benefit $167,023 Pt��ri�c Infrast�cCu�'e s��w-ar��!Md��r'ate-lnco►r�� 'Ar2a 8enefit �r7 C122' 2015 Total $630,272 r.�--.__._.__, �r C�,�t 0. ,-\� J i,.� ljqCY.. ¢ � ��*2� � �..���� � . ��s .'� ����� ����� Funding Contingency Plan • King County requires a Funding Contingency Plan if the Housing and Urban Development Department ("HUD") allocation is greater or less than the 2015 anticipated amounts • City's Funding Contingency Plan is to equally split any increase or decrease of final amounts between the Commercial Rehabilitation and Public Infrastructure activities ----____ ��� -. ....nl�'r"'M�"[•, ary°�` 'e� �['� p- 4 —_.��.... (�. ��3'���� �� •'��"` 4 � � � 10/06/2014 Recommended Action • Approve the amended 2014 CDBG Funding Plan to allocate $78,717 for Commercial Rehabilitation activities; • Approve the 2015 CDBG Funding Plan to allocate $630,272 for King County contractual set-asides, City planning/administration, and Commercial Rehabilitation and Public Infrastructure activities as provided in the staff presentation; and • Approve the 2015 CDBG Funding Contingency Plan to equally split any increase or decrease of HUD allocation amounts between Commercial Rehabilitation and Public Infrastructure activities. _ ,� � �'����� <� q - .; �� c,� y► � �� ••�,/'�, ,�„����:� ,� 5 0 . �,r � DEPARTMENT OF COMMUNITY D � ���O � .,�;. & ECONOMIC DEVELOPMENT O � M E M O R A N D U M DATE: October 2, 2014 T0: Don Persson, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: Chip Vincent, Community & Economic Development Administrator�� STAFF CONTACT: Cliff Long, Economic Development Director John W. Collum, Community Development Project Manager SUBJECT: Changes to Community Development Block Grant (CDBG) Plan On September 15, 2014, City Council approved setting a public hearing on October 6, 2014 to consider approving the amended 2014 CDBG plan and the 2015 CDBG allocation of funds (Agenda Item 6b). Attached to the item's Agenda Bill were three exhibits (Issue Paper, Rehabilitation Loan Program Description Draft, Downtown Business District Map), which were provided to the Council President and Members to provide some background on the proposed CDBG approvals. Leading up to the October 6t" public hearing, staff from the Community& Economic Development and Community Services departments have been reviewing options with King County CDBG staff to utilize an alternative national objective that must be met for the City's proposed economic development activities to qualify for CDBG funding. We have determined that using the "Low- and Moderate-Income Area Benefit" objective as opposed to the "Low- and Moderate-Income Jobs" and "Addressing Slums or Blight on a Spot Basis" objectives is preferable. The area benefit objective requires that at least 51% of the residents residing in a primarily residential area are low- and moderate-income persons. Utilizing recent census data, we have determined that the combined Downtown and South Renton subareas of the City Center Community Plan meet this requirement. This determination would allow staff to more easily administer the proposed economic development activities by simply utilizing the census findings. Use of the other objectives which would require significant job tracking and/or property surveying exercises throughout the administration process. Don Persson,Council President M�mbers of Renton City Council �� � Page 2 of 2 , October 2,2014 Staff has revised the September 15th exhibits to reflect use of the area benefit objective, as well as expansion of the target area for CDBG-funded economic development activities from the Downtown Business District to the larger powntown/South Renton area. We request that the attached exhibits be utilized in your consideration of Item 5 on Council's October 6t" Regular Agenda. cc: Jay Covington, Chief Administrative Officer Attachments: Issue Paper (Memorandum dated October 2, 2014) Draft-Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program Map-Downtown &South Renton Combined Subareas , �,r � DEPARTMENT OF COMMUNITY D o ci�of & ECONOMIC DEVELOPMENT '------" Q��O�� '�F:�� M E M O R A N D U M DATE: October 2, 2014 T0: Don Persson, Council President Members of Renton City Council VIA: Denis Law, Mayor • FROM: Chip Vincent, Community & Economic Development Administrator����j� STAFF CONTACT: Cliff Long, Economic Development Director John W. Collum, Community Development Project Manager SUBJECT: Amend the 2014 Community Development Block Grant (CDBG) Plan and Allocation of 2015 Funds ISSUE: Should the City of Renton use a portion of its CDBG funds for economic development activities? RECOMMENDATION: Approve the amended 2014 CDBG plan and the allocation of 2015 CDBG funds for human services and economic development activities. BACKGROUND SUMMARY: Commercial building rehabilitation and public infrastructure improvements are common activities in any community's economic development program to spur private investment. Cities throughout the country have developed programs where property and business owners are offered grants or loans at favorable terms. The grants or loans are used as incentives to encourage physical improvements and correct code violations that combat blighting conditions in existing buildings, as well as to encourage the creation of jobs. The resulting improvements will also benefit residents of the surrounding neighborhoods, including low- and moderate- income households that depend upon the goods and services provided within their local communities. The City of Renton ("City") is interested in creating a program that provides financial assistance as an incentive for owners in Downtown Renton to rehabilitate their buildings. Such a program would encourage private investment in Downtown, provide marketable space for new and Don Persson,Council President M�mbers of Renton City Council � � Page 2 of 3 . October 2,2014 expanding businesses, achieve significant visual improvements, and improve Downtown's overall health and safety. Federal CDBG funding can be used for economic development purposes such as commercial rehabilitation and public infrastructure improvements. Each specific project to be funded through CDBG must be an eligible activity under the Housing and Urban Development Department regulations ("HUD regulations"), meet a national objective in accordance with HUD regulations, and comply with the City's joint agreement for CDBG funding with King County ("Joint Agreement"). An interdepartmental team recommends that the City repurpose its allocation of CDBG funds (approximately$397,000 per year) for such economic development activities in 2015, and use one-time General Fund money to support human services programs currently funded by CDBG funding. The programs, including support for human services agencies and the City of Renton Housing Repair Assistance Program, will continue to be operated as they currently are with a change to General Fund funding. In 2014, there is an estimated $78,717 in unallocated CDBG dollars that can be utilized for economic development activities. For this purpose, the Community& Economic Development Department has created the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Rehab Loan Program;" see attached description). The Rehab Loan Program will target funding to incentivize and assist property and business owners to move forward with projects that promote rehabilitation of commercial buildings to improve fa�ades and upgrade existing buildings to bring them into compliance with current codes. Generally,the Rehab Loan Program will provide a minimum of$10,000 in assistance per property, offered in the form of a forgivable loan which must be matched dollar for dollar by the applicant. Owners of properties or businesses (with landlord consent) located within the Downtown and South Renton subareas (as designated in the City Center Community Plan) are eligible. The combined subareas are defined as properties generally bounded by Rainier Avenue/Shattuck Avenue South (west), South 7th Street/Grady Way (south), Main Avenue South/Houser Way (east), and the Cedar River/South Tobin Street (north). Residential properties or residential uses within mixed use projects are not eligible. Interested borrowers with eligible projects will be required to submit an application package to be considered for funding. In 2015,the City is estimated to receive $630,272 in CDBG funds. The allocation after contractual set-asides per the Joint Agreement is estimated to be $397,072. The contractual set-asides consist of County Administration of$63,027, County Capital Administration of $12,605, Housing Stability Program (provides rent and mortgage assistance to prevent individuals or families from eviction) funding of$31,514, and King County Housing Repair Don Persson,Council President MAmbers of Renton City Council � '�ry+'° Page 3 of 3 . October 2,2014 Program (provides interest free loans and emergency grant services to low and moderate income home owners to repair their homes) funding of$126,054. Of the$397,072 remaining after set-asides, the City is proposing to use $63,027 or the maximum amount allowed for Planning and Administration. The remaining balance of$334,045 is proposed to be used to provide additional funding to continue the Rehab Loan Program, as well as support public infrastructure improvements related to commercial rehabilitation and revitalization efforts within the greater powntown/South Renton area. Specific infrastructure projects to receive CDBG funding will be determined in conjunction with projects submitted for Rehab Loan Program consideration and identified needs in the Downtown/South Renton area. The human services programs that are currently funded by CDBG dollars—Housing Repair Assistance Program and three human services programs managed by the Community Services Department—are recommended to be funded by the General Fund starting in 2015. The programs' 2015 costs are collectively estimated to be $240,438. One-time audit settlement money available in 2014 is anticipated to be used to allow the General Fund to backfill the housing and human services programs in 2015. Assuming the City will continue to utilize the General Fund to support these programs beyond the 2015 one-year trial basis and throughout the three-year period that the Joint Agreement covers (2015-2017), the City will need to identify another General Fund revenue source to continue funding these programs in 2016 and 2017 if its CDBG allocation will continue to support economic development activities during those years. The Housing Repair Assistance Program will have greater flexibility and efficiency with the proposed funding change. Federal and county regulations increase the amount of time devoted to paperwork substantially. With the change to General Fund funding,this time can be spent doing repairs instead. CONCLUSION CDBG funds can provide a source of funding for economic development activities in the downtown area to incentivize improvements to commercial buildings and public infrastructure in 2014 and 2015. The improvements are expected to create additional economic opportunities and stimulate reinvestment in the Downtown/South Renton area, which has been deemed a priority area for economic development. Furthermore, the improvements will benefit the area's residents, including low- and moderate-income persons. cc: Jay Covington, Chief Administrative Officer Larry Warren, City Attorney Garmon Newsom, Senior Assistant City Attorney Iwen Wang, Administrative Services Administrator . � �,�,r DRAFT DOWNTOWN COMMERCIAL REHABILITATION AND FA�ADE IMPROVEMENT LOAN PROGRAM Modernized and attractive buildings support and encourage local businesses and business development within a commercial, mixed-use district. The presence of underutilized,vacant or generally dilapidated buildings within an area generally reduces the appeal and marketability of it as a viable commercial district. Attractive storefronts, updated buildings and well-maintained historic structures, supporting a variety of commercial uses, have a significant positive effect on the marketability and livability of the surrounding area. Healthy commercial districts benefit residents of the surrounding neighborhoods, including low-and-moderate income persons, by providing goods and services that are readily accessible. Investment in Renton's Downtown and South Renton subareas (as designated in the City Center Community Plan) and the improvement and enhancement of their buildings will promote greater retail and pedestrian activity and improve their economic viability. The City of Renton ("City") believes that it is in the public's best interest to improve the aesthetics and physical quality of these subareas in order to stimulate reinvestment. Improvement and restoration of fa�ades of privately-owned commercial buildings, along with updating them to meet current codes,would assist in removing blight and deterioration that impedes economic growth, stimulating additional private investment in the buildings and the surrounding area,and creating jobs. Most importantly, the investment and improvements will benefit the residents of the subareas by expanding and strengthening their options for goods and services. The City has earmarked Community Development Block Grant("CDBG")funding to assist with its economic development efforts. Funding will be targeted to assist projects that will promote rehabilitation of commercial buildings to improve fa�ades and upgrade existing buildings to bring them into compliance with current codes,with the goal of stimulating additional private investment and creating additional economic opportunities. A financial incentive will be offered to business and property owners in the form of a zero percent interest loan,which must be matched dollar-for-dollar by the applicant and may be forgivable subject to performance. All financial assistance will be provided on a first-come,first-served basis(upon meeting eligibility requirements)while funding is available. Program Goals and Objectives The primary goals of the City's Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Program")are to encourage investment in Downtown, achieve significant visual improvements in its built environment, and improve Downtown's overall health and safety. In particular,the commercial rehabilitation activities funded through the Program will meet the CDBG program's national objective of benefitting low-and moderate-income persons on an area basis. The combined Downtown and South Renton subareas are located within three census tract block groups (Nos. 53 033 025300-3,-4 and -5) where at least 51%of the residents are considered to meet low-and moderate-income levels as defined by U.S. Housing and Urban Development Department ("HUD") guidelines. Collectively,the combined subareas are primarily residential, but include a significant number of commercial buildings with businesses that serve the residential population. The building improvements to be provided through the Program's funding are anticipated to expand and strengthen the variety of goods and services available to all of the area's residents, as well as other City residents. The combined subareas form an urban community where commercial needs can be assessed 1 ' '�,�,`" � by residents through a variety oftransportation modes, including walking, biking,driving short distances or using public transit. The Program further seeks to promote economic development by providing an incentive for property and business owners to renovate their buildings for occupancy by new or expanding businesses. Successful outcomes will produce updated commercial structures meeting current code requirements and storefronts that will attract retail, eating and drinking, and other pedestrian-oriented establishments. Program Details Available Program • For 2014,$78,000 has been programmed by the City for investment. Funds • Up to$7,500 is reserved for architectural design review consultant services to the City as applicants submit projects for consideration. Eligibility Location: Property must be located within the Downtown or South Renton subareas as designated within the City Center Community Plan (see boundaries on attached map). App/icants: • For profit or nonprofit operating businesses (new or existing) seeking to locate or expand (with landlord consent if not property owner). • Owners of existing property(vacant or occupied) with a re-use plan. • All property taxes and business license fees must be current in order to participate in the program. Activities: • Overall renovation and improvement of existing commercial building facades, including windows, doors,walls, roof, paint, awnings, signage, light fixtures, etc. • Upgrades or rehabilitation to bring existing building into compliance with current codes(correcting existing code violations). • Off-site construction of frontage or infrastructure upgrades that are a requirement of a city-approved development plan. • Soft costs (professional fees, consultant studies, property reports, etc.) related to eligible activities above. Loan Terms and • Up to five-year term with zero percent interest. Conditions • Forgivable at end of term if all Program requirements have been completed and the loan recipient is in good standing. • Evidence of matching funds must be provided at time of funding approval. Potential Loan Amount Individual project loan amount must be a minimum of$10,000,and maximum amount subject to eligibility and available funds. The actual loan amount must be matched by the applicant dollar-for-dollar through other exterior/interior building improvements or with site improvements. Fees • Application Fee of$200.00. • Loan Origination Fee of$150.00, or 0.25%of the actual loan amount, whichever is greater. • Closing Costs(including any legal fees)of 50%of total actual costs. Occupancy Any applicant business that qualifies with landlord consent must possess a Requirements valid lease that is at least co-terminus with the term of the funding loan. 2 . , �'r � CDBG Requirements Property must be located within the Downtown or South Renton subareas, � which are located within an area in which at least 51%of the residents are considered to meet low-and moderate-income levels as defined by HUD guidelines. Important Process • Applicants receiving loan funding will be required to execute a legally Items binding agreement with the City containing terms that comply with HUD's CDBG program guidelines. • Loans generally will be funded upon completion of project improvements and City inspection approvals; however, consideration can be provided for a portion of the funding to be paid prior to completion depending upon the needs of the applicant and its project. • Loans will be secured by a deed of trust recorded on the property's title and an unlimited guarantee of the principal owners of the property or business(depending upon borrower). Application Process Interested applicants will be requested to submit an on-line application form that will include (at a minimum)the following information: a. Proposed borrower entity(including entity type, background, number years in existence or, if new,formation status). b. Detailed project description - number of square feet to be renovated/acquired/leased,types of uses, description of intended occupant businesses. c. Status of leasing if building includes tenant space—provide signed agreement or letter(s) of intent(LOIs)when available. d. Description of physical architectural barriers to access and plan for remediation (if applicable). e. Preliminary proposed budget with listing of other funding sources and status(proposed, in review, committed). Following initial intake screening, project applicants will be requested to provide additional information for financial review. Info may include any of the following: a. Preliminary project timeline with key milestones. b. Development team qualifications. c. Building inspection report. d. Preliminary schematic design plans. e. Third party cost estimate with a detailed scope of improvements. f. Updates to detailed breakdown of sources and uses and status of other financing sources (Proposed/Committed/Timing for Commitment). g. Financials and tax returns for borrowing entity. h. Evidence of site control or description of acquisition plan. i. Environmental reports as requested (dependent on project scope). Following receipt of additional information and staff review, loan applications will be submitted to a Program Loan Committee for funding approval. The Program Loan Committee is anticipated to consist of representatives from the City's Fiscal Services and Economic Development divisions, an outside lending institution,and/or a financial consultant. For further information, please contact John W. Collum, Community Development Project Manager, at (425)430-6589,or jcollum@rentonwa.�ov. 3 . � ,. , .. . . > . . 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(tE��. �o �� �' �.' :..- k �� , .; /ff'�; :.{(� • . .t..,�.cTl.�'�T ��! a....��..y,V..�� .�.... � : f�"� `f :'�•. � .::.� �:��.�j- . i :� �E, �,�� { ��� � � � � .o �� .. �r � � ' �� � � 1 � City of Renton '�"'` Notice of Public Hearing Community Development Block Grant(CDBG) Funds Proposed Use of 2015 CDBG Funds and Amendment to 2014 Unallocated Capital Funds NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 6th day of October at 7:00 pm as the date and time for a public hearing to be held in the Council Chambers of Renton City Hall,Seventh Floor, 1055 S. Grady Way, Renton, WA 98057,to provide an opportunity for public comment on the allocation of CDBG funds. Public comment is requested on the proposed 2015 CDBG projects and an amendment to the 2014 plan. The City proposes to amend the 2014 CDBG plan by allocating 2014 Unallocated Contingency Plan funds(C14-603) of $78,717 to the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program.The funds will be used to provide financial incentives to property and business owners to renovate and improve commercial buildings. Generally, a minimum of$10,000 in assistance per property will be offered in the form of a forgivable loan,which must be matched dollar-for-dollar by the applicant. Owners of properties or businesses(with landlord consent) located within the Downtown Renton business district are eligible. The business district is defined as properties generally bounded by Shattuck Avenue South,South 4`h Street, Main Avenue South,and South 2"d Street, including properties fronting both sides of these streets. Residential properties or residential uses within mixed-use projects are not eligible. For more information,contact John Collum. Contact information is provided below. 2015 Funds The City will receive an estimated $630,272 in 2015 CDBG funds. The allocation after contractual set asides is estimated to be$ 397,072 which the City is proposing to allocate as follows: 1) Planning and Administration: $63,027 or the maximum amount allowable under the program to plan and administer the use of CDBG funds. 2) An estimated$334,045 in CDBG funds is available.The City proposes to allocate a portion of the funds for public infrastructure improvements related to commercial rehabilitation and revitalization efforts within the greater Downtown area, and the remaining funds to continue the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program.The program and infrastructure improvements are currently under development. Further details and an opportunity for public comment will be provided as they are finalized. For more information,contact John Collum,Community Development Project Manager, City of Renton Community& Economic Development Department at 425-430-6589,or icollumCa?rentonwa.�ov. This notice is available in alternate formats for individuals with disabilities upon request. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Renton City Hall is in compliance with the American Disabilities Act,and interpretive services for the hearing impaired will be provided upon prior notice. Call (425)430-6510 for additional information. � so eth cting City Clerk Published: Renton Reporter September 19, 2014 Account No. 50640