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HomeMy WebLinkAbout02/12/1998 - Report - Facade Improvement Committeen CITY OF COLLEGE STATION FACADE IMPROVEMENT PROGRAM PROGRAM GUIDELINES e! % IIJ� Unless herein stated otherwise, general operating procedures contained in the Community Development General Administrative Guidelines will be followed. 1. GOALS AND STATEMENTS OF PURPOSE: The goals of the City of College Station Facade Improvement Program (FIP) are: (1) to restore and preserve the historical integrity and character of certain targeted areas within the City limits of College Station (see attached map for Council approved eligible areas) and certain identified blighted commercial structures; and (2) to maintain or increase the economic vitality of these eligible areas and properties. OBJECTIVES In many ways, commercial development helps to define the character of our City. With this in mind, the City of College Station has developed this program to actively revitalize declining commercial areas and eliminate random sites of slum and blight within the City. The primary objectives of this program are as follows: (1) to create public - private partnerships between the City of College Station and Merchants/Property Owners through offering economic incentives for the renovation, restoration, and preservation of commercial building exterior facades and the correction of code violations; (2) to stimulate economic development and redevelopment, thereby increasing sales tax revenues and property values; (3) to ensure the survival of the areas' architectural and cultural history; and (4) to eliminate slum and blighting conditions in the eligible areas and as they exist throughout the City through the correction of building code and Property Maintenance Regulations' (anti- neglect) violations. Measurable accomplishments will be monitored by determining the amount of private funds made available for reinvestment, the number of code violations eliminated and increases in property values. Intangible results will L "' Property Maintenance Regulations - Section 5 of Chapter 3 of the City Code of Ordinances Facade Improvement Program Program Guidelines Page 2 of 9 Tr evised January, 1998 be documented through the obvious aesthetic improvements to the buildings' exterior and the revitalization of the area. 3. PROGRAM ADMINISTRATION: The Facade Improvement Program will be operated in accordance with all applicable rules and regulations of the City of College Station, the State of Texas, and the U.S. Department of Housing and Urban Development (HUD) depending on the type of funding utilized. Additionally, regulations that set forth requirements for meeting the National Objectives for the use of CDBG funds will determine and may affect the amount of assistance available and the scope of work to be approved. Administrative procedures used to implement the program will be revised and modified to meet any changes made to such rules and regulations of the above entities which may occur over time. Administrative authority for operation of the program will rest with the Office of City Manager, which will have the authority to execute documents necessary for project initiation and completion. The Community Development Office will serve as the approving office for administrative procedures and processes, program eligibility, contract negotiation, and any required change orders to the contract. The Community Development Administrator will have direct responsibility for the daily administration of the program, including waiving of certain program administrative processes and requirements in order to achieve the Council- approved Goals and Objectives. , seven member Facade Improvement Program Advisory Committee (Committee) appointed by the City Council will assist in the implementation of the program. The Committee's voting membership shall consist of: • Position 1: Local registered architect • Positions 2 & 3: Merchants /property owners of commercial businesses /properties in College Station • Position 4: City Engineer, or designee • Position 5: City Planner, or designee • Position 6: Community Development Administrator, or designee • Position 7: Chairperson of the City's Historical Preservation Committee, or designee The Advisory Committee's initial terms of office shall be three years for the architect and two years for the merchants and/or property owners. All terms thereafter shall be for three years. City staff positions and the Chairperson of the City's Historical Preservation Committee, or designee, will be permanent positions. The Committee will elect a Chairperson from their membership on an annual basis. 4. ADVISORY COMMITTEE DUTIES: The Advisory Committee's duties will include: a) The establishment and review of Facade Improvement Program rehabilitation and design standards; 1rr. Facade Improvement Program Program Guidelines Page 3 of 9 Pevised January, 1998 d The review of applications for proposed projects and the recommendation for approval/disapproval of such projects; e) When necessary, due to funding limitations, the ranking or prioritizing of projects based on, but not limited to, the consideration of visibility, safety, relative worth of the project to the amount of funding requested, and relative contribution of the project to the revitalization of an eligible area; f) The determination of the amount of program funds to be made available to the proposed project, based on, but not limited to, the consideration of the historical significance of the structure, the time and date of application, the significance of the project to the revitalization of an eligible area, safety, the readiness of the project to proceed, the financial stability of the applicant, and the type, value, and visibility of the applicant's proposed matching contributions. Additionally, the Committee, in reviewing each proposal, shall consider the City's land use and development codes, any studies relevant to the eligible area, (i.e. the Northgate Revitalization and Redevelopment Study), any development guidelines relevant to the eligible area (i.e., Northgate Development Guidelines), and the standards and policies within the Zoning Ordinance. Standards and policies of the Zoning Ordinance take precedence over other applicable codes and ordinances where conflict exists. In addition, the Committee may also consider the following factors: O Exterior space utilization. O Attractiveness. fh� Material selection. Harmony and compatibility. O Circulation - vehicular and pedestrian. O Maintenance aspects. The Committee will make recommendations to be utilized by the Community Development Office regarding the implementation and completion of each project. 5. PROGRAM DESCRIPTION The City of College Station, with funding through its Community Development Block Grant and other funds that may become available, will provide a deferred, forgivable loan to eligible property owners or merchants to make specifically defined improvements to eligible commercial buildings. Eligible property owners /merchants will receive a deferred payment loan in the amount of the City's contribution, potentially to be forgiven in full five (5) years from the date of the loan's promissory note from the property owner /merchant to the City ( "the Note "). The loan shall bear no interest on the principal outstanding balance. Provided that the property owner /merchant has in good faith attempted to fulfill provisions of the Note and complied with all provisions of the City's Facade Improvement Program Guidelines as now stated or as amended, the amount of the loan to be paid back shall be reduced by twenty percent (20 %) of the original amount for each full year after rehabilitation of the property. Provided further that if the property owner /merchant complies with all such provisions for the - ntire five (5) years term of the Note and more than four (4) years have elapsed since the completion of the ,,,habilitation, then the entire amount of the Note shall be forgiven. Facade Improvement Program Program Guidelines Page 4 of 9 Revised January, 1998 1%W the event of sale within the five (5) year loan period, the loan shall become due on the closing date of the sale. In the event of non - payment by the property owner at that time, interest shall accrue on the matured, remaining balance at the rate of ten percent (10 %) per annum. However, upon approval of the City and on positive recommendation of the Committee, the remaining loan and lien requirements may be transferable to an appropriate purchaser of the property. Additionally, if it is determined by City staff, that it is unpractical to place a lien on the subject structure, then other forms of security may be approved by City staff, including but not limited to, liens on other real, personal, or business property. Liens will not be required for projects with total project costs of less than $25,000. If, within 2 years from completion of an earlier project, a subsequent application is received for the same property, the following applies. The total City contribution for both the earlier project and pending project will be combined to arrive at a lien amount for the additional work. The match requirements however, will be based only on the new project costs. The term for the new and adjusted lien amount will be based on the most recent project application. If the combined project amounts are less than $25,000, no lien against the property will be required. In exchange for the loan, the property owner and/or merchant will be required to provide at a minimum, matching funds in the amount of $3,000 in order to receive FIP funds. In exchange, the City will provide up to $15,000 for other eligible project costs. For project expenses in excess of $15,000 the City will provide matching "dollar- for - dollar" funding up to a total project cost of $25,000. Finally, for total project costs in xcess of $25,000 the City will provide additional match funding on a 70/30 match formula, where the City �rovides $7 of every $10 in project costs. The following examples demonstrate funding possibilities: Total Project Cost Private Investment Required City Investment Available $14,000 $18,000 $20,000 $25,000 $50,000 $75,000 $3,000 (21 %) $3,000 (17 %) $4,000 (20 %) $6,500 (26 %) $14,000 (28 %) $21,500 (29 %) $11,000 (79 %) $15,000 (83 %) $16,000 (80 %) $18,500 (74 %) $36,000 (72 %) $53,500 (71 %) The total funds available in this program at any given time may restrict the City's ability to meet a particular loan request. Applications shall be processed in accordance to any funding priorities identified by the City Council as areas of significant need, including the funding of "pocket areas" with an eligible target area. Applications for buildings with the highest significance rating as determined by the Committee may be processed first. Otherwise, applications which have provided all requested information shall be processed on a first -come, first -served basis with first -time applicants having priority. Facade Improvement Program Program Guidelines Page 5 of 9 'Revised January, 1998 6. ELIGIBLE AREAS See attached map for eligible redevelopment areas. Funds will be made available only to commercial properties located within eligible and identified redevelopment areas or to certain structures determined by the City to be in a slum or blighted condition. Eligible redevelopment areas are those areas defined by the City Council as being "blighted areas ". A "blighted area" is defined by its substantial number of substandard, deteriorating, or deteriorated structures that impairs or arrests the sound growth of the City or constitutes an economic or social liability and/or menace to the public health, safety, or welfare in its present condition or use; and due to the number of vacant buildings and existence of violations of Building and Property Maintenance Regulations. Other areas in the City will be reviewed on an annual basis for eligibility. In addition, funds may annually be targeted by the Committee to certain "pocket areas" within an eligible area in order to maximize the effectiveness and efficiency of the program. 7. PROGRAM ELIGIBILITY REQUIREMENTS a) The building must be occupied or available to a commercial tenant and located in the eligible areas shown on the attached map or be a designated slum and blighted structure. Exterior renovations of buildings constructed before 1950 will be subject to review by the Texas Historical Commission. New building construction is not eligible. �) Eligible applicants include both the owner(s) of a business (merchant) located in an eligible building and the property owner(s). The application must be signed by all parties (property owner(s) and/or merchant(s)) requesting participation in the program. Should the property owner(s) or merchant(s) designate an alternate representative, a legal power of attorney document needs to be submitted with the application. c) Applicants must verify that there are no code enforcement actions, tax liens, judgment liens, or delinquent property taxes owed currently active against the property, or the property owner must submit a payment agreement approved by the taxing authority and the City. The property owner must demonstrate an acceptable payment history for 6 months prior to project approval. d) A "due diligence" financial review will be conducted by staff to ensure that the applicant is not subject to bankruptcy or foreclosure. Applicant shall provide documentation of financial stability and a sworn statement that they are not in bankruptcy, about to enter bankruptcy, and that they are current on all indebtedness that does, or could, affect the value or ownership of the property or business. e) Funds may not be approved for work which is in progress or has been completed However, work completed as a part of the match requirement for the project that is initiated and completed after Committee approval is acceptable for match. f) Projects must be reviewed and approved and the required contract documents executed before City - funded renovation work may begin. Facade Improvement Program Program Guidelines Page 6 of 9 Revised January, 1998 g) Prior to project approval, all proposed projects will undergo an environmental review conducted by Community Development staff. Conditions identified in this review may require remediation and will be reviewed for eligibility for grant funds. h) Any expenditures which exceed the approved loan amounts shall be the sole responsibility of the applicant(s). The City will notify the applicant(s) in writing of the approximate loan amount available, based on preliminary cost estimates developed by City staff. The applicant will then submit to the City documentation showing availability and commitment of matching funds prior to the project receiving final approval from the Advisory Committee. i) All funds to be supplied by the applicant for the completion of the project will be deposited with the City into an escrow account prior to construction contract execution. 8. IMPROVEMENTS ELIGIBLE FOR LOAN FUNDS: All eligible improvements must be approved by the Community Development Office and the Committee, and be in compliance with all City and State code requirements. All existing exterior code violations located along the main facades of the building must be corrected and will receive first priority in reference to eligible loan expenditures. The following items are eligible expenses for loan funding �"a) Exterior facade treatment systems (i.e., painting, siding, bricking, EFS systems) for the building. b) Repair, replacement or installation of exterior doors, windows and trim work located on the exterior. c) The repair, replacement, or installation of awnings on the structure. Any awning containing any temporary or permanent lettering or logo will be considered a "sign" and will not be eligible for funding. Permanently installed awnings that merely provide brackets or support for signs are eligible. d) Exterior brick or tile repair or replacement. e) The installation of display window lighting. Illuminated hanging signs in the display window will not be eligible for funding. f) Exterior brick paving sidewalks or other committee approved walkway treatments adjacent to the building. g) Structural improvements to the building facades. h) Electrical or lighting improvements made to the building facades. i) Any permanent building improvement which specifically provides better access for handicapped citizens and meets federal ADA dimensions and standards. Facade Improvement Program Program Guidelines Page 7 of 9 'Revised January, 1998 j) The removal or abatement of an y hazardous material or substance from the building as outlined and j) specified by the Texas Department of Public Health, EPA, HUD, or TXDOT. k) Other items determined eligible by the Committee. 9. IMPROVEMENTS ELIGIBLE FOR MATCHING FUNDS: All improvements must be approved for eligibility by the Community Development Office and the Committee and be in compliance with all City and State code requirements. Only permanent building improvements will be considered for eligibility. Code violations must be corrected first and will receive first priority status as eligible match. The following items are not eligible expenses for the matching funds provided by the owner or business owner: (1) Architectural fees, (2) Satellite equipment, audio or video equipment, and (3) computer systems. The Advisory Committee will make the final determination as to the eligibility of matching improvements. 10. APPLICATION PROCESS a pplications will initially be reviewed for program eligibility and funding by Community Development staff. ligible applications will be forwarded, with accompanying staff recommendation regarding funding and program priorities, to the Committee. The Committee will make final selection of projects to receive funding subject to any "pocket areas" priorities. City staff will develop program agreements to award the loans, and then funded projects will be reviewed for project design and feasibility. The Community Development Office, possibly in cooperation with TAMU and local architects, will assist applicants in the preparation of standard facade design and construction drawings (if necessary) illustrating approved eligible facade improvements. The City will, on an annual basis, solicit and select a qualified, licensed architect to provide design and drafting services for program projects The applicant may also use his own licensed architect; however, if the applicant selects an architect, the architect's fees are not eligible expenses under this program. However, if detailed working drawings are required and the applicant uses the City's contracted architect, the costs for such work will be an eligible program expenditure. The eligible architectural expenses will generally be limited to 7.5% of the total project cost, unless otherwise approved by staff. 11. PROGRAM REQUIREMENTS All improvements must be reviewed for compliance with applicable local, state, and federal requirements and approved in advance by the City's Community Development and Planning Divisions. Facade Improvement Program Program Guidelines Page 8 of 9 Revised January, 1998 1% a) Applicants are to designate one person who will be the applicant's contact person for the project. The contact person notifies all other persons of the time and date for design meetings. b) Applicant agrees to maintain improvements at a similar or higher level /quality for a minimum of five years. Applicants who are not the property owners are required to maintain improvements for the term of their lease or five years, whichever is less. Modifications to facade improvements must conform to appropriate architectural designs and building exteriors must be maintained in accordance with City building and anti - neglect standards. In addition, any subsequent leases during this five year period will include language requiring any subsequent alteration to facades be in accordance with the design and review standards of the Facade Improvement Program. c) Buildings renovated under this program must be occupied by commercial tenants or be available for commercial occupancy for a period of five years. d) All projects utilizing funds subject to Davis -Bacon Federal Wage Standards regulations in excess of $2,000 must comply with The Davis -Bacon Act, which provides for payment of prevailing wages to persons employed on a federally funded construction/rehabilitation project. e) All funded projects must maintain adequate hazard insurance for a period of five years following project completion. This requirement may be waived upon recommendation of City staff for proposed projects that (W address health and safety issues. f) A Site Plan reflecting property lines and the structure relative to those property lines will be required as well as, any amenities on sidewalks or walkways. g) Applicants must provide documentation of ownership of the structure. Additionally, the City will complete a title search. h) All appropriate permits must be obtained prior to beginning the facade improvements. By approval of these p ' guidelines the City Council is agreeing to the waiver offees for appropriate building electrical plumbing or signage (etc.) permits i) Exterior painted are required to be treated as the first improvement under this program. After treatment, other eligible improvements can be funded with the remaining funds. j) The applicant will be responsible for all costs in excess of approved grant funds. Any contingency work or change orders will be authorized by the Community Development Office and program participant prio to implementation. k) All bidding procedures and contractor selection will be subject to local, state, and federal procedures. Every effort will be made to award bids in groups in order to increase program efficiency. Facade Improvement Program Program Guidelines Page 9 of 9 Revised January, 1998 1 Generally, bids will be solicited only from contractors included in the City's Community Development Facade Improvement Program Qualified Contractors List. This list will be presented to each applicant for review. Applicants will have the opportunity to refer any contractor of their choice to the City for determination of inclusion on this list. m) Work for funded projects must begin and be completed within a reasonable time -frame established by the City and/or committee. n) Generally, the City will administer, as the applicant's agent, the bidding process, the supervision of the construction, the release of progress payments, and provide the form of construction contract. Dependent on the terms of the Contract, the City may approve and accept the construction work on behalf of the Property Owner/Merchant. O All requirements established by the City of College Station regarding this program are subject to change. 12. APPEALS PROCESS The approval for the eligibility of receipt of federal funding per regulatory compliance shall rest solely with the Community Development Office. 4 w Appeals from decisions of the Committee shall be to the Planning and Zoning Commission and this decision shall be binding. Applicants appealing must do so in writing and within ten (10) days of the Advisory Committee's decision. Appeals shall be submitted to the Community Development Office. A representative from the Community Development Office shall schedule a hearing of the appeal before the Planning and Zoning Commission within thirty (30) days from receipt of the letter of appeal. 13. SPECIAL CON SIDERATIONS : If the proposed building will undergo exterior changes or alter historically significant interior space, the changes must be reviewed and approved by the appropriate state or local entity before the project can be funded. The Secretary of the Interior's Standards for Rehabilitation (see attached) will be utilized for all projects determined historically significant. The Committee will retain the right to waive program requirements in order to facilitate the program's Council - approved goals and objectives. The C ommunity Development Administrator will retain the right to waive program processe and procedures in order to facilitate the rogram's Council - approved goals and objectives. R 08/27/97 14:07 $409 764 X78 ,cm I RCS. �r the revitalization of the area. 5 C S COMM DEVELOP 1, � 4 I PROGRAM ADMINISTRATION The Facade Improvement Program will be operated in accordance with all applicable rules and regulations of the City of College Station, the State of Texas, and the U.S, Department of Housing and Urban Development (HUD) depending on the type of funding utilized. Administrative procedures used to implement the program will he added and modified to meet any changes made to such rules and regulations of the above entities which may occur over time. Administrative authority for operation of the program will rest with the Office of City Manager. The Community Development Office will serve as the approving office for program eligibility, contract negotiation, and any required change ci-ders to the contract. The Community Development Administrator will have direct responsibility for the daily administration of the Program. A five member Facade Improvement Program Advisory Committee appointed by the City Council will assist in the implementation of the program. All projects proposed under the auspices of this program shall be reviewed by this committee. This committee shall be a body appointed by the City Council and the voting membership shall consist of (1) one registered architect, (2) one merchant and /or property owner located within the applicant's eligible targeted area, (3) City Engineer, or designee, (4) City Planner, or designee, and (5) Community Development Administrator, or designee. The Chairperson of the City's Historical Preservation Committee shall serve as a non - voting member. The Position Two membership of the committee shall vary based on the eligible area being fiuided. The Advisory Committee's duties will include the establishment =1 review of Facade Improvement Program rehabilitation and design standards and the periodic re- examination of the Facade Improvement'4PTogram's program guidelines and eligible areas. The Advisory Committee's initial terms of office shall be tluec years for the architect and two years for the merchant and/or property owner. All terms thereafter shall be for three years. City staff positions will be permanent positions. 4. PROGRAM DESCRIPTION The City of College Station, with funding through its Community Development Block Grant and other funds that may become available, will provide a deferred, forgivable loan of up to Ten Thousand Dollars ($10,000.00) per storefront, separate business, or facade structure to eligible property owners or merchants to make specifically defined improvements to commercial buildings in the eligible area. Eligible property owners/merchants will receive a deferred payment loan, potentially to be forgiven in full five (5) years from the date of the loan's �.. promissory note from the property owner /merchant to the City ("the Note "). The loan shall bear no interest on the principal outstanding balance. Provided that the property owner /merchant has Z002