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.
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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
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, EmaiL• Email:
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Email: Email:
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EmaiL• EmaiL•
Topic: Topic:
(CONTINUED ON REVERSE SIDE)
a
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(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:
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11 15
Name: Name:
Address: Address:
City: Zip Code: City: Zip Code:
Email: Email:
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Address: Address:
City: Zip Code: City: Zip Code:
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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
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Public Hearing
Community Development Block Grant Funding:
2014 Amendment & 2015 Allocation
Presented to the Renton City Council
October 6,2014
Agenda Item 5
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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
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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
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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
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Public Infrastructure
• Improvements related to commercial
rehabilitation projects and overall Downtown
revitalization efforts
• Sidewalks, streets, streetlights, streetscape,
drainage, water, sewer, accessibility
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CDBG Funding Plan
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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
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2015 Total� � � � � � $630,272
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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
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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.
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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
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,� �,� r • 1 • �.• - �• • • � i • •
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� � ;,�„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
— _____�
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���/��^ Cc�°��t�� �
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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
_____..
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, „�,,. ,� 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
—
�. :� °
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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
-----___
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Downtown/South Renton Combined Subareas
Downtmvn i�otAh R�nwn
Corr�bir»d Stib�nas
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Public Infrastructure
• Improvements related to commercial
rehabilitation projects and overall Downtown
revitalization efforts
• Sidewalks, streets, streetlights, streetscape,
drainage, water, sewer, accessibility
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,
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
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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
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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.
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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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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