10-25-2010 Presentation: Hendryx - Urban RenewalUrban Renewal
Grant and Loan Program
City Council
October 25, 2010
Background
What is Urban Renewal?
• Tool to improve specific areas that are poorly
developed
— Areas typically have deteriorated buildings, failing
utilities, weak business activities (blight)
• Authorized by Oregon statute to finance
improvements
— tax increment financing - portion (the increment) of
property tax revenues from properties within the
district that are designated to support financing
improvements within area
• Woodburn Urban Renewal Plan Adopted -
2001
Purpose of the Woodburn Urban
Renewal Plan?
• Revitalize and redevelop the "historic downtown"
core of Woodburn.
— Present - positive image
— Create - safe environment
— Create - place for businesses to thrive.
— Fund projects in downtown and along Highways 99E
& 214
What Are Woodburn ) s Specific
Plans for Urban Renewal?
• Urban renewal provides a variety of
projects and programs
— Woodburn's Urban Renewal Plan - up to 62
projects
—This includes:
Redevelopment assistance
• dome rehabilitation
Business assistance
What Is Business Assistance?
—1997 Downtown Development Plan
Storefront Design and Improvement Program
• Design services per year (4 — buildings)
• Improvements per year ($10,000/4 buildings)
— Woodburn Urban Renewal Plan
• Authorization to assist in the rehabilitation and
renovation of residential and commercial properties
within the renewal area
What Is Business Assistance?
— Woodburn Urban Renewal Plan
• The Renewal Agency may participate, through
loans, grants, or both, in maintaining and
improving exterior and interior conditions of
buildings in the renewal area
— Commercial Rehabilitation $500
— Housing Programs & Projects 2 MUU0
— Commercial Programs & Projects $272707000
Downtown Development Plan
Update (January 2010)
Strategic Business Development Actions
• Institute a Storefront Improvement
Program
— Three to six projects per year
• Administered as a matching grant program
• Grants to improve the appearance of buildings, with a focus
on exterior improvements
• Matching grants are less than $15,000
• Eligible projects must meet design standards
Downtown Development Plan
Update (January 2010)
Strategic Business Development Actions
• Institute a Building Rehabilitation Loan
Program
— Three to six projects per year
• Provide a financial incentive for property and business
• Low- or no- interest loans to property owners and /or tenants
for specific improvements
• The loans are typically less than $25,000
• Eligible projects must meet design standards
Woodburn Urban Renewal Plan
• Conclusion
—Urban Renewal Plan provides authority for
Grant and Loan program
— Downtown Development Plan &Downtown
Development Plan Update re- enforces grant
and loan programs
Woodburn Urban Renewal Grant
and Loan Program
• Proposed Storefront Improvement Grant
Program
— Matching grant program (50/50 reimbursement grant
with matching owner investment)
— Improves the appearance of the building with a focus
on exterior and fagade improvements
— Matching grants are typically less than $10,000
— Eligible Activities:
• Windows, Painting, Seismic, Storefronts, Exterior lighting,
Awnings /Canopies, Signage, ADA accessibility, Environmental remediation,
Permits
Woodburn Urban Renewal Grant
and Loan Program
• Proposed Interior Improvement Grant
Program
• Matching grant program (50/50 reimbursement grant
with matching owner investment)
— Improve the interior of buildings with a focus on
addressing code related improvements
— Grants are typically less than $5,000
— Intended to achieve immediate and highly visible
results
— Eligible Activities:
• HVAC, Electrical, Plumbing, ADA accessibility, Environmental remediation,
Permits, Electrical, Plumbing, Code deficiencies
Woodburn Urban Renewal Grant
and Loan Program
• Proposed Downtown Loan Program
— Incentive to Downtown Property Owners and
Business Owners
— Physical improvements to buildings
— Low interest loans
• 10 year fixed rate — current market rate
— Typically less than $25,000
Woodburn Urban Renewal Grant
and Loan Program
Proposed Downtown Loan Program,continued)
• Eligible Activities:
— All normal and reasonable costs associated with
rehabilitation /restoration or construction
— Tenant improvements are subject to an executed
lease and the reasonable cost per square foot
• Ineligible Activities
— Acquisition, loan fee, refinancing, training, staffing costs,
equipment, and personal property, reimbursement of costs prior
to loan award, and organizational expenses are ineligible
Where?
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Downtown Development Plan Update
Zoning Designations
RS - Single Family Residenr ad
CG - Camm ,x Gen A
Q R1 - Retirement Coo-n .ity Single 1--dy Residential
CO - Commercial OEEm
6t S M
_ RM- Medium D,—y Residential
IL- Light Industrial
_ DDC- Downtown Development and Conservation
IP - Industrial Park
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P /SP - Public end Semi -Public
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Questions
• DDC &Gateway or DDC only
• Different grant and loan amounts —for
Gateway?
• Tax - exempt properties are excluded from
the program
• What changes?
Council Direction
• The City, acting through the Urban
Renewal Agency, initiates a Grant and
Loan Program for downtown properties
• Prepare grant and loan guidelines for the
Urban Renewal Agency's review and
approval
• Prepare a supplemental budget and take
necessary steps to implement Grant and
Loan Program
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