Title
Consider approving Resolution No. 2015-048 authorizing a Commercial Facade Revitalization Grant Agreement for 13610 Midway Road and take appropriate action.
Body
BACKGROUND:
In 2012, a Commercial Facade Revitalization Program (Program) was developed and funded to encourage property owners to enhance the publicly viewed areas of their buildings. Facade grants are available up to a 50/50 matching basis with a minimum project value of $2,000 and a maximum reimbursement of $50,000 per grant, unless otherwise approved by the City Council. Since the Program's inception, four grants have been approved: 12879 Josey Lane, 12895 Josey Lane, 3212 Beltline Road, and 2914-2920 Valley View Lane. There is currently a $209,860 balance in the fiscal year 2014-2015 budget for this Program.
DISCUSSION:
BH Properties owns eleven (11) office buildings along Midway Road between Alpha and Sigma. One (1) is not being renovated, seven (7) of the buildings have been issued building permits, and three (3) are substantially completed.
Location Contractor Valuation Lease Space SF Received Final Inspection
13604 Midway $40,001 13,586 No
13608 Midway $35,001 1,800 No
13614 Midway $45,001 9,552 No
13720 Midway, 100 $47,500 23,134 No
13740 Midway, 500 $45,001 14,495 No
13740 Midway, 600 $35,001 9,821 No
13740 Midway, 800 $18,000 9,821 No
The owner is now applying for a facade grant for the remaining three (3) buildings. The 13610 Midway property is 14,938 square feet of one story office space. The facade grant application submitted to the Economic Development Department on April 3, 2015 lists the project value at $130,000. The applicant is requesting $50,000 for this property.
The applicant lists planned improvements to include adding stucco and molding to the exterior of each property, which is consistent with the other building permits.
Location Contractor Valuation Lease Space SF Grant Amount Requested
13610 Midway $130,000 14,938 $50,000
RECOMMENDATION:
The applicant previously submitted a commercial facade grant application for 13720 Midway (Suite 200) on June 17, 2014 which was denied by City Council. Leading to this decision included the fact that several buildings had already been renovated without an incentive, a building permit had already been issued for the subject address, and the estimate was more than three times that of the previous valuations. While a building permit does not exist for this address, the $130,000 estimate is inconsistent with the previous seven (7) permit valuations, and it appears the $50,000 requested incentive would pay for 100% of the improvements. For this reason City Administration recommends denying Resolution No. 2015-048.
ATTACHMENTS:
1. Information Memorandum
2. Commercial Facade Grant Program Details
3. Application
4. Rendering
5. Resolution No. 2015-048