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URA July 14, 2014 AgendaCITY OF WOODBURN URBAN RENEWAL AGENCY AGENDA KATHRYN FIGLEY, CHAIR TERESA ALONSO LEON, BOARD MEMBER WARD 1 LISA ELLSWORTH, BOARD MEMBER WARD II PETER MCCALLUM, BOARD MEMBER WARD III JAMES COX, BOARD MEMBER WARD IV FRANK LONERGAN, BOARD MEMBER WARD V ERIC MORRIS, BOARD MEMBER WARD VI JULY 14, 2014 - 6:45 P.M. CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET CALL TO ORDER 2. ROLL CALL 3. CONSENT AGENDA A. Urban Renewal Agency minutes of June 23, 2014 Recommended Action: Approve the minutes. 4. PUBLIC HEARINGS None. 5. GENERAL BUSINESS A. Resolution No. 2014-03 - A Resolution Amending the Downtown Grant and Loan Program to Provide Large Renovation Grants for Significant Projects within the Urban Renewal District as Specified Herein Recommended Action: Adopt the resolution amending the Urban Renewal Grant and Loan Program to increase grants from $10,000 to $50,000 for building renovation projects that eliminate blight, promote economic development, create jobs, provide community benefits, and beautify the downtown. B. Resolution No. 2014-04 - A Resolution Amending the Downtown Grant and Loan Program Procedures and Requirements Recommended Action: Adopt the resolution amending the procedures and requirements of the Urban Renewal Grant and Loan Program to allow the Downtown Advisory Review Subcommittee to amend approved projects, when project costs change from original estimates. 6. PUBLIC COMMENT 7. ADJOURNMENT July 14, 2014 Urban Renewal Agency Page i 17 2 E:1 URBAN RENEWAL AGENCY BOARD MEETING MINUTES JUNE 23, 2014 0:00 DATE COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JUNE 23, 2014 CONVENED The meeting convened at 6:45 p.m. with Chair Figley presiding. ROLL CALL Chair Figley Present Member Cox Absent Member Lonergan Present Member McCallum Present Member Morris Absent Member Ellsworth Present Member Alonso Leon Present Staff Present: City Administrator Derickson, City Attorney Shields, Economic and Development Director Hendryx, Public Works Director Scott, Community Services Director Row, Police Captain Garrett, Communications Coordinator Horton, Finance Analyst Head, Urban Renewal Manager Stowers, City Recorder Pierson 0:00 CONSENT AGENDA A. Urban Renewal Agency minutes of June 9, 2014. McCallum/Lonergan... adopt the Consent Agenda. The motion passed unanimously. 0:00 URBAN RENEWAL GRANT 2014-13 165 W. HAYES ST. (PARRA) Urban Renewal Manager Stowers provided a staff report. McCallum/Lonergan... approve the Urban Renewal exterior grant application from Jose Parra for up to $2,700. 0:03 URBAN RENEWAL GRANT 2014-14 320 N. PACIFIC HWY, STE 110 (BARAJAS) Urban Renewal Manager Stowers provided a staff report. McCallum/Lonergan... approve the exterior Urban Renewal grant applications from Timoteo Barajas for up to $900. 0:04 URBAN RENEWAL GRANT 2014-15 175 S. FRONT STREET (SUMNER) Urban Renewal Manager Stowers provided a staff report. Lonergan/Ellsworth... approve an exterior Urban Renewal grant application from Michael Sumner for the amount of $1,100. 0:06 ADJOURNMENT McCallum/Lonergan... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 6:51 p.m. APPROVED KATHRYN FIGLEY, CHAIR ATTEST Heather Pierson, City Recorder City of Woodburn, Oregon Page 1 — URA Board Minutes, June 23, 2014 � 1,17 4 Ili ♦ �f -,4 Item BU July 14, 2014 TO: Urban Renewal Agency Board FROM: Jim Hendryx, Economic and Development Services Director Robyn Stowers, Urban Renewal Manager SUBJECT: $50,000 Urban Renewal Grants RECOMMENDATION: Adopt the resolution amending the Urban Renewal Grant and Loan Program to increase grants from $10,000 to $50,000 for building renovation projects that eliminate blight, promote economic development, create jobs, provide community benefits, and beautify the downtown. BACKGROUND: On June 9, 2014, the Urban Renewal Agency reviewed a resolution to amend the Urban Renewal Grant and Loan Program to provide $10,000 to $50,000 matching grants for large-scale renovation projects. The amendment included a procedure that allowed applicants to receive credits for prior renovation projects completed without Urban Renewal funds. The Agency directed staff to clarify that request to receive credit must be made within a twelve month time frame, require documentation, and to specify that credits are awarded at the Agency's discretion. The Urban Renewal Grant and Loan Program was adopted by the Agency in February, 2011 to aid business and property owners with the rehabilitation and renovation of residential and commercial properties within the district. The program is designed to provide matching funds for exterior ($10,000) and interior ($5,000) improvements to properties located in the Urban Renewal Grant and Loan district. The program also provides loan funds ($25,000) to further these same improvements. The proposed amendment does not impact the original program. DISCUSSION: Increasing the Urban Renewal Grant and Loan Program from $10,000 to $50,000 will allow business and properties owners located in the Downtown 2 Urban Renewal Agency Board Urban Renewal Grant and Loan Program Development and Conservation District to go beyond basic building maintenance to completing large renovation projects that will encourage more investment downtown by eliminating conditions of blight, promoting economic development, creating jobs, providing community services, and beautifying the area. Applicants must achieve a minimum l:l leverage ratio of private investment to public investment of urban renewal dollars. The policies and procedures clarify requirements to receive credits on past building renovations made without Urban Renewal funding. The amendments include requiring renovations to have been made within twelve months of the request, providing documentation for all improvements made, and specifying that credits are awarded at the Agency's discretion. FINANCIAL IMPACT: No impact at this time. I URBAN RENEWAL RESOLUTION NO. 2014-03 A RESOLUTION AMENDING THE DOWNTOWN GRANT AND LOAN PROGRAM TO PROVIDE LARGE RENOVATION GRANTS FOR SIGNIFICANT PROJECTS WITHIN THE URBAN RENEWAL DISTRICT AS SPECIFIED HEREIN WHEREAS, the City adopted the Downtown Development Plan in 1997, which envisioned a series of improvements and actions intended to reinvigorate Woodburn's historic downtown; and WHEREAS, in 2001 the City created the Woodburn Urban Renewal Agency and adopted the Urban Renewal Plan, which further recognizes the importance of physically improving the appearance of properties within the renewal area; and WHEREAS, in 2010, the Downtown Development Plan Update recognized the need to reinvigorate downtown Woodburn and recommended leveraging urban renewal funds with private funds to create investment through a Downtown Grant and Loan Program; and WHEREAS, in 2011, the Woodburn Urban Renewal Agency adopted a Urban Renewal Grant and Loan Program for a designated area in downtown Woodburn; and WHEREAS, in 2013, the Urban Renewal Agency Board expanded the Grant and Loan Program to properties along Young Street and at the Young Street/ 99E Highway; and WHEREAS, the Urban Renewal Agency Board wants to further leverage private investment in Woodburn's historic downtown by increasing funding projects which have a significant economic impact on the downtown; NOW, THEREFORE, THE WOODBURN URBAN RENEWAL AGENCY RESOLVES AS FOLLOWS: Section 1. The Downtown Grant and Loan Program, established by Urban Renewal Resolution 2011-01, is amended to provide large renovation grants up to $50,000 for significant projects located in the Downtown Development and Conservation (DDC) Zoning District and subject to the policies and procedures set forth in the attached Exhibit "A". Page 1- Urban Renewal Resolution 2014-03 N Approved as to Form: Passed by the Agency Submitted to the Chair Approved by the Chair ATTEST: City Attorney Date APPROVED: Heather Pierson, City Recorder City of Woodburn, Oregon Page 2- Urban Renewal Resolution 2014-03 I Kathryn Figley, Chair (Exhibit A) LARGE RENOVATION GRANT POLICIES & PROCEDURES Large Renovation Grants offer property and business owners the opportunity to complete large renovation projects on commercial and mixed-use properties located in downtown Woodburn. These grants provide a match of the applicant's private investment in the project to significantly increase the scale and benefit of the improvements. Large Renovation Grants may range between $10,000 and $50,000 in matching funds. POLICIES Program Eligibility 1. Grants are available for up to $50,000 for complete renovation projects. Grants are subject to the availability of funds. 2. Business and property owners are eligible to apply for grants. 3. Properties must be located in the Downtown Development and Conservation District (DDC). 4. Grants are available for commercial or mixed-use properties only. Residential properties do not qualify for grants. 5. There is a minimum of 1:1 leverage ratio of private investment to public investment. 6. All work requiring permits must be performed by licensed contractors. 7. All work must commence after project approval. Work completed prior to approval is ineligible for funding. 8. Building improvements shall be completed within one year of approval. Project Eligibility 1. Funding may be used for materials and work performed by Applicant's contractor. 2. Funds are limited to physical improvements to the buildings. Improvements may include, but not limited to, the following: a. ADA accessibility h. Gutters b. Awnings/canopies i. HVAC c. Code deficiencies j. Lighting d. Cornices k. Painting e. Electrical I. Permits f. Energy efficient upgrades m. Plumbing g. Environmental remediation n. Seismic 9 G o. Storefronts q. Roofing p. Repointing r. Windows 3. Applications will be evaluated by the following criteria: a. Eliminates conditions of blight — Addresses blighted conditions, including underutilized land and/or deteriorated buildings and structures b. Promotes economic development — Enhances the property's aesthetics, making it a better place to live, work, or seek entertainment c. Creates jobs —Brings new employers and employment opportunities to the Woodburn community d. Community benefits —Creates amenities for the Woodburn community e. Physical impact — Improves the attractiveness of the property and downtown PROCEDURES Application Process 1. The applicant must submit a completed application. 2. The City will perform a site inspection and take photos of the property. 3. The Downtown Advisory Review Subcommittee (DARS) will meet to review applications to make recommendations to the Urban Renewal Agency Board (Agency). 4. The Agency will review applications at regularly scheduled meetings for final approval. Reimbursement Process 1. Upon approval by the Agency, the Applicant shall sign a Grant Agreement. 2. Upon conclusion of the project, the Applicant shall schedule a City inspection and sign a Completed Work Statement. 3. Invoices and a W-9 must be submitted for reimbursement. No grant money will be disbursed until the project is completed and approved by the Agency. SIX MONTH EXTENSIONS & PROJECT CREDIT 1. The Agency may grant one six month extension per grant. The Applicant must submit a written request for the extension and provide justification for the Agency's consideration. 2. Applicants may receive credit on past renovations that were made without grant funding, at the Agency's discretion. The request must meet the Agency's Large Renovation Grants evaluation criteria and be completed within twelve (12) months of the request. The Applicant must submit a written request and provide documentation of improvements for the Agency's consideration. EM 7 1,17 4 Ili ♦f Item BU July 14, 2014 TO: Urban Renewal Agency Board FROM: Jim Hendryx, Economic and Development Services Director Robyn Stowers, Urban Renewal Manager SUBJECT: Urban Renewal Grant and Loan Program Modification RECOMMENDATION: Adopt the resolution amending the procedures and requirements of the Urban Renewal Grant and Loan Program to allow the Downtown Advisory Review Subcommittee to amend approved projects, when project costs change from original estimates. BACKGROUND: In February, 2011, the Urban Renewal Agency Board adopted the Urban Renewal Grant and Loan Program to aid business and property owners with the rehabilitation and renovation of residential and commercial properties within the Urban Renewal Grant and Loan district. The program is designed to provide matching funds for exterior ($10,000) and interior ($5,000) improvements to properties located in the district. The program also provides loan funds ($25,000) to further these same improvements. Over the years, the Urban Renewal Grant and Loan Program's procedures and requirements have been amended four times to clarify and improve the efficiency of the program. On June 12, 2014, the Downtown Advisory Review Subcommittee (DABS) recommended staff amend the procedures to give DARS the authority to approve project amendments when costs change from original estimates. DISCUSSION: Currently, there is no procedure for DARS to modify an approved project after the grant application is approved by the Agency. Applicants must complete all elements of the project to be eligible for funding. When project costs rise above initial estimates, applicants may decide to forgo the grant, or postpone the project and reapply to the program at a later date. To streamline the process, 9 Urban Renewal Agency Board Urban Renewal Grant and Loan Program DARS recommended staff amend the policy to allow business and property owners to amend approved project scope. Amending the Urban Renewal Grant and Loan procedures to give DARS the authority to modify approved projects improves program efficiency by decreasing approval time. The procedure to amend project scope shall be consistent with the procedure to increase project funding, which includes: • Requests made in writing, which must include specific documentation, and are to be submitted prior to the commencement of work on the requested project element(s). • Project scope remaining consistent with the originally approved project. The request may not be associated with a new project element. • The Downtown Advisory Review Subcommittee's action appearing on the Urban Renewal Agency's consent agenda. FINANCIAL IMPACT: No impact at this time. I URBAN RENEWAL RESOLUTION NO. 2014-04 A RESOLUTION AMENDING THE DOWNTOWN GRANT AND LOAN PROGRAM PROCEDURES AND REQUIREMENTS WHEREAS, with the adoption of Resolution 2011-01, the Urban Renewal Agency Board established the Downtown Grant and Loan Program in February 2011; and WHEREAS, the Downtown Grant and Loan Program includes procedures and requirements; and WHEREAS, the Downtown Grant and Loan Program procedures and requirements need clarification on how a business and/or property owner may amend approved projects, when project costs change from original estimates; NOW, THEREFORE, THE WOODBURN URBAN RENEWAL AGENCY RESOLVES AS FOLLOWS: Section 1. The revised Downtown Grant and Loan Program procedures are amended as provided in Exhibit A, which is attached hereto. Approved as to Form: City Attorney Passed by the Agency Submitted to the Chair Approved by the Chair ATTEST: APPROVED: Heather Pierson, City Recorder City of Woodburn, Oregon Page 1- Urban Renewal Resolution 2014-04 10 Date Kathryn Figley, Chair (Exhibit A) Woodburn Urban Renewal Agency Urban Renewal Grant and Loan Requirements Program Requirements 1) Projects must be located within the Urban Renewal Grant and Loan District as identified below. 2) The applicant, after meeting with staff to discuss the proposed project, shall submit a completed Urban Renewal Grant and Loan application and all supplemental materials provided. 3) Projects assisted by this program are to be rehabilitation and renovation projects showing significant improvement to the property and must be compatible with the area streetscape. 4) Exterior Evaluation Criteria: • Comply with the City of Woodburn Downtown Architectural Design, Woodburn Development Ordinance Standards, and Signage Standards. (Requirement not specific to program) • Shall work towards restoring the building as closely to its original design as possible. • Shall be designed, constructed, and maintained to compliment the architectural features of the building. All accessories, signs, awnings, etc. shall likewise compliment the overall character of the building. 5) Grants are available for up to $10,000 for exterior renovation and up to $5,000 for interior renovation. 6) Loans are available to property owners in amounts up to $25,000 and are secured by a Trust Deed in the amount of the loan. 7) Applications may be made for a combination of grant and loan funds. Eligible Projects: The following list is not exhaustive, but covers the majority of types of exterior projects that are eligible: _ADA accessibility .Awnings/canopies _Code deficiencies _Cornices _Design & architectural services (up to $1,000) _Electrical _Energy efficient upgrades (some restrictions apply) _Environmental remediation _Exterior lighting _Exterior painting and cleaning -Panting _Gutters & downspouts _HVAC Permits 11 _Plumbing _Seismic _Sign installation and hardware _Storefronts _Repointing _Replacement of missing decorative features _Removal of non -historic materials or additions _Roofing Windows Ineligible Activities: _Administrative costs or payments to borrower for direct labor costs _Building acquisition _Improvements to non-public faces of buildings _Improvements to interiors of single/multifamily residential properties _Inventory or other working capital _Landscape improvements _ Property maintenance _ Work (wages) not performed by a licensed contractor 8) There is a 50/50 match requirement required for the Grant program. Invoices must be submitted for reimbursement. No grant money will be disbursed until the project is completed and is approved by the Agency. 9) Grant and loan funds cannot be used for any work commenced or completed prior to project approval. 10) Grant and loan funds may be used for materials and services provided by licensed contractors. 11) All necessary building, mechanical, electrical and/or plumbing permits must be obtained and the work must be inspected and approved. 12) Grants and loans are dependent upon the availability of funds and must be reviewed and approved by the Downtown Advisory Review Subcommittee and the Urban Renewal Agency Board. 13) Projects shall be completed within one year of approval in order to be eligible for reimbursement. Grants provide for a single payment after receipts are provided and all completed work is accepted by the City. 14) The Urban Renewal Agency Board may grant one 6 month extension for work to be completed under this program. The applicant must submit a written request for the extension and provide justification for the Board's consideration. 15) All work will be done by licensed contractors and the applicant needs to provide at least three bids for every aspect of work greater than $2,500. 16) Business and/or property owners may reapply for grant and/or loan funds until the grant and/or loan limit is reached. They must then wait 12 months to reapply. 17) After grant and loan limits have been reached on the property, business and/or property owners may reapply for grant and/or loan funds every 12 months for the same property. 12 18) Grant and loan funds are limited to physical improvements to the buildings themselves. Non -permanent improvements, such as purchasing new equipment, do not qualify for this program. 19) The Downtown Advisory Review Subcommittee may authorize to increase funding and modify project scope to approved grant and/or loan requests when project costs change from original estimates. 20) Requests must be made in writing, must include specific documentation, and are to be submitted prior to the commencement of work on the requested project element(s). 21) All requests are subject to available funds. 22) Project scope remains consistent with the originally approved project, and the request is not associated with a new project element. 23) Overall project cost cannot exceed grant and loan fund limitations. Maximum exterior and interior grants are limited to $10,000 & $5,000 respectively. Maximum loan amounts cannot exceed $25,000. 24) Property owners may request to convert an Urban Renewal grant into a loan. Upon approval of the Downtown Advisory Review Subcommittee, the property owner must separately apply and qualify for a loan through the Mid -Willamette Council of Governments. 25) The Downtown Advisory Review Subcommittee's action shall appear on the Urban Renewal Agency consent agenda as an informal item. 13