TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Director, Urban Development Director
SUBJECT:
title
Riverfront Downtown Urban Renewal Area (RDURA) Capital Improvement Grant Program Exception Guidelines
Ward(s): Ward 1
Board Member(s): Board Member Kaser
Neighborhood(s): CANDO, GRANT
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ISSUE:
Shall the Agency Board approve the Guidelines for RDURA Capital Improvement Grant Program Exceptions?
RECOMMENDATION:
recommendation
Approve Guidelines for RDURA Capital Improvement Grant Program Exceptions.
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SUMMARY AND BACKGROUND:
On March 13, 2017, the Agency Board was presented RDURA Capital Improvement Grant Program Exception Criteria for approval consideration. At this meeting, staff was directed to outreach to prior and potential future users of the grant program to solicit their feedback on proposed guidelines in order to determine whether they would inhibit development or be overly burdensome.
Information on the proposed Capital Improvement Grant Program Exception Criteria was sent to twelve individuals who represent the following interests:
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Number |
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Contacted |
Representation |
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3 |
Commercial Brokers |
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3 |
Private developers |
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2 |
Business/Property Owner who used grant program |
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2 |
Redevelopment Consultants |
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1 |
Local Financial Institution |
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1 |
Property owner who is future grant applicant |
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Note: |
One of the private developers is also a grant recipient. |
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One of the contacts is both a property and business owner. |
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Local Financial Institution has participated in projects with |
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URA grant funds. |
Staff shared that grants over $300,000 are processed as exceptions to the current Capital Grant Improvement Program and require approval by the Agency Board. These individuals were also informed that exception guidelines are being proposed to provide clarification to staff, the DAB, and the Agency Board when grant exceptions are submitted for consideration. Details on the proposed guidelines were provided along with background information on the current Capital Improvement Grant Program and a program flyer.
Ten of the twelve individuals contacted provided responses. Their feedback concluded that that the proposed exception guidelines would not be a barrier for redevelopment or new construction projects within the URA that might seek a grant award in excess of $300,000.
The following guidelines are being re-submitted for Agency Board consideration:
CAPITAL IMPROVEMENT GRANT PROGRAM EXCEPTION GUIDELINES
Mandatory Requirements
1) Project must meet a minimum of two Capital Improvement Grant Program Objectives listed below:
• New construction
• Mixed-use, including housing
• Alley improvements
• Historic preservation projects that require Historic Landmarks Review
• Expansion of existing business, retention or recruitment of new business that results in creating new jobs
• Upper floor renovations - improvements that make currently un-leasable space to a level it can be occupied.
2) 4:1 Leverage of Private/Public Funds; and
3) Project must meet one of the following “Other” criteria,
Other Criteria:
• Grant pay back analysis of increased tax increment reflects payback over 7-10 year period or sooner, or
• Project is characterized as blight due to obsolescence, deterioration, dilapidation, mixed character or shifting of uses, or
• Affordable Housing
FACTS AND FINDINGS:
Grant programs are an eligible project in the Riverfront Downtown Urban Renewal Area Plan - Section 1105 - Core Area Redevelopment.
On February 9, 2017, the Downtown Advisory Board unanimously approved recommending to the Agency Board the RDURA Capital Improvement Program Grant Exception Criteria.
If the proposed guidelines are approved, they would be a reference tool for Staff, the Downtown Advisory Board, and the Agency Board when reviewing proposals for grant exceptions.
Sheri Wahrgren
Downtown Revitalization Manager
Attachments:
1. None