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HomeMy WebLinkAbout2011/02/22 Item 9CITY COUNCIL & ~M REDEVELOPMENT AGENCY ~. AGENDA STATEMENT ~-- CHULA VISTA February 22, 2011 Item ITEM TITLE: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEE TO IMPLEMENT THE BUSINESS IMPROVEMENT GRANT ("BIG") PROGRAM AND TO ENTER INTO AGREEMENTS PROVIDING GRANTS AS PART OF THE PROGRAM. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEE TO IMPLEMENT THE "BLOCK BY BLOCK HOME MAKEOVER" PROGRAM AND TO ENTER AGREEMENTS PROVIDING NO-INTEREST FORGIVABLE LOANS AS PART OF THE PROGRAM. SUBMITTED BY: REDEVELOPMENT MANAGER REVIEWED BY: ASSISTANT CITY MANAG VELOPMENT SERVICES DIRECTOR 4/STAB VOTE: YES ~ NO SUMMARY Chula Vista's 2010-2015 Redevelopment Implementation Plan was approved on December 15, 2009, in accordance with State regulations (California Health and Safety Code, Section 33490). The document is a work plan for the Redevelopment Agency that identifies specific programs, including potential projects critical to successful redevelopment. In pursuit of achieving the plan's goals for supporting small business and preserving existing housing stock, staff proposes to amend and implement the following programs: The Business Improvement Grant or "BIG" Program: The BIG program provides grants for facade improvements to small businesses located on Third Avenue and Broadway Avenue. Staff 9-1 FEBRUARY 22, 2011, Item_ ~_ Page 2 is proposing to increase the grant amount from $20,000 to $30,000 dollars. The Block by Block Home Makeover Program: Working one block at a time, this program provides forgivable loans of up to $30,000 for exterior improvements to the homes located within the Southwest Redevelopment Project Area in the Woodlawn Park and Broderick Acres neighborhoods. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the action authorizes a loan program to fund improvements to homes and a grant program to fund improvements to businesses that will involve negligible or no expansion of existing uses. Thus, no further environmental review is necessary. RECOMMENDATION The Redevelopment Agency adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION BIG Program: In December 2009, staff presented an informational item to update the Council/Agency on several new Agency programs designed to support and promote the small business community. One of those programs was the BIG program, which had recently completed a successful pilot project on Broadway with the Cape Cod Center. The preliminary design of the Block by Block Home Makeover Program was the subject of a Chula Vista Redevelopment Corporation Workshop on June 24, 2010. The CVRC recommended implementing the program with minor modifications. DISCUSSION Chula Vista's 2010-2015 Redevelopment Implementation Plan was approved on December 15, 2009, in accordance with State regulations (California Health and Safety Code, Section 33490). This document is a work plan for the Redevelopment Agency that identifies specific programs, including potential projects critical to successful redevelopment. The plan describes how, when, and where tax increment funds should be spent. The goals of the 2010-2014 Five Year Implementation Plan are as follows: • Stimulate Economic Growth: Attract, expand, and retain desirable business and industry, which effectively increases local employment opportunities for community residents, and enhances the local tax base. • Construct Infrastructure Imnrovements: Provide needed improvements to the utility infrastructure and public facilities that serve the Redevelopment Project Areas. And, provide needed improvements to the community's education, cultural, and other community facilities to better serve the Project Areas. 9-2 FEBRUARY 22, 2011, Item_ 9 Page 3 • Promote Compatible Development: Upgrade and stabilize existing uses, and promote and preserve artistically, architecturally, and historically worthwhile structures and sites to encourage the development of residential, commercial, and industrial environments which positively relate to adjacent land uses. • Balanced Housing Opportunities: Increase, improve, and preserve the community's supply of vazied housing opportunities for all persons at all income levels. The strategic focus of the Agency's work program includes leveraging resources and assets to facilitate high-quality, urban development. In the pursuit of its goals and strategic focus, the Redevelopment Agency is implementing the following projects and programs: Stimulate Economic Growth: Business Improvement Grants (BIG) Program for Broadway and Third Avenue businesses. The BIG program provides grants to business and property owners to assist with fagade renovations. These renovations promote visibility/mazketability with the goal of increased economic prosperity for businesses and increased property/sales tax revenue for the City. Construct Infrastructure Improvements: Third Avenue Streetscape Program: The Agency has committed $1.2 million to the enhancement of the public improvements along Third Avenue from E Street to H Street. Palomar Gateway Improvements: The Agency provided twenty percent matching funds or approximately $350,000 towards the recently completed improvements at Palomar Street and Industrial Boulevard. Main Street Streetscape Master Plan: The Agency is currently providing the funding for City staff to prepaze a master plan for the Main Street Corridor. The Master Plan, like that of Third Avenue, will provide the engineering drawings necessary to construct sidewalks, lighting, landscaping, parking and drainage improvements along the Main Street Corridor. Upon completion of the Master Plan and preparation of construction documents the Agency anticipates issuing Tax Allocation Bonds in 2014 to construct the improvements on Main Street. The improvements will help to promote the visibility of the area as a viable and attractive business/industrial park, attracting new investment and em loyment to the azea. Promote Compatible Development: The Agency has provided matching funds toward the grant to prepaze a Specific Plan for the Palomar Gateway. In addition, the Agency is funding city staff time to work with the Southwest working group on various land use and zoning issues around south Broadway and south Third Avenue. Balanced Housine Opportunities: 9-3 FEBRUARY 22, 2011, Item_C/_ Page 4 The Agency has embarked on the creation of a residential rehabilitation grant program for the two residential neighborhoods located within the Southwest Redevelopment Project Area, to be known as the Block-by-Block Home Makeover program. The neighborhoods of Broderick Acres and Woodlawn Pazk will have the opportunity to participate in a no-interest, forgivable loan program that is designed to promote long-term homeownership and investment in the neighborhood. The programs identified above are focused on maintaining, improving and preserving assets already located throughout the redevelopment project areas. In an effort to further attract new capital investment within the western Chula Vista project areas, staff proposes creating and amending the following two programs; the Business Improvement Grant or "BIG" program, and the Block by Block Home Makeover Program. The Business Im rovement Grant or "BIG" Pro ram: The BIG program provides grants for facade improvements to businesses located on Third Avenue or Broadway in the redevelopment project areas. This program seeks to respond to the 2010-2015 Implementation Plan goal of "Stimulating Economic Growth," offering financial incentives to improve storefront facades, promote existing small businesses, and positively impact the economy of these Chula Vista commercial districts. Grant funds are available for retail and service businesses such as restaurants, hairdressers, and nail salons. In the past year, the program has funded the exterior renovation of three retail centers, including 15 small businesses, and several new applications are in process. Currently, program funds are provided up to $20,000 per applicant. Staff recommends increasing the maximum grant amount by $10,000. For shopping/retail centers with multiple businesses, $20,000 has not been sufficient to cover the improvements needed to completely renovate the exterior of these larger commercial/retail centers. Staff has found that bids for facade improvements for shopping/retail centers with multiple businesses (typically include lighting, signage, painting) are exceeding the initial cap of $20,000. The increase allows property owners to make needed improvements that positively impact a number of businesses. To make the BIG program more efficient and available to a wider pool of local contractors (Chula Vista contractors are given preference), staff is proposing the following changes to the program: (1) The City Manager and/or his designee will be authorized to enter into grant agreements to provide funds to eligible business owners and commercial property owners, (2) Grants limits will be increased from $20,000 to $30,000, (3) office uses will be added to the grant program -eligible commercial office businesses can receive 100% matching funds (up to $15,000) per business, and (4) direct payments will be issued to contractors participating in this program. Direct payment will significantly reduce the administrative complexity of the program, and would allow for a shorter turnaround time for contractor payment, therefore lowering barriers for small contractors who may not have significant operating capital available. For more detailed information about the program, please refer to the attached BIG Grant Overview (Attachment 1). 9-4 FEBRUARY 22, 2011, Item _~ Page 5 The Block by Block Home Makeover Program: This program implements the "Balanced Housing Opportunities" goal in the 2010-2015 Implementation Plan- improving and preserving the city's existing housing supply. Working one block at a time, this program provides forgivable loans of up to $30,000 for exterior improvements to single family homes located within the Southwest Redevelopment Project Area in the Woodlawn Park and Broderick Acres neighborhoods (please see map, Attachment 2). This program was developed in collaboration with community advocates from Southwest Civic Association, who felt that reinvestment in these neighborhoods was long overdue. Homeowners participating in the program will be able to choose from a menu of improvement options, many of which would both make their homes more livable, and simultaneously reduce their homes' use of water and electricity, thereby lowering ongoing operating costs. Because the program focuses on exterior repairs, we expect that each participating block will undergo visible improvements that will positively impact pride of ownership, and the long term stability of these neighborhoods. Blocks are selected for this program based on a number of factors, including level of response to the initial notice explaining the program, and neighborhood need. Based on these factors, Lotus Drive in the Woodlawn Park azea was the first block selected for the program. After completing the work with all interested homeowners on Lotus Drive, Staff expects to continue this program on other blocks in the area. The loans aze seven-year forgivable loans, a seventh of which is forgiven each year the homeowner continues to reside in their home. Once the resident confirms that the work on the home has been completed to his/her satisfaction, the City will pay the contractor working on the project directly. After the payment is made to the contractor, a lien will be registered with the County of San Diego for the total amount of the loan. It will specify that one seventh of the loan will be forgiven each year so long as the borrower or his/her designated heir continues to reside in the home. If seven years elapse without sale, the loan will be forgiven. If home is sold before the end of this period the purchaser of the property will pay the remaining amount at the time of purchase. If the property is rented to anon-family member prior to the end of the loan term, the borrower must notify the City of this change, and pay the amount remaining of the loan to the City. For additional detail on the Block-by-Block Home Makeover processes and procedures, please see Attachment 3, the "Home Makeover Program -- Program Overview." DECISION MAKER CONFLICT With regazd to the Business Improvement Grant ("BIG") Program, staff has reviewed the property holdings of the City Council Members, and has found that Council Members Castaneda and Ramirez own properties within the redevelopment project areas and therefore have a conflict, based on the 500-foot rule found in California Code of Regulations section 18704.2(a)(1) applicable to this decision. 9-5 FEBRUARY 22, 2011, Item_ 9 Page 6 With regard to the Block by Block Home Makeover Program, staff has found that no City Council Members have property holdings within 500 feet of the Home Makeover Project Area, thus no disqualifying conflict exists on this item. Staff Member Conflicts Verification By: Carla Blackmar Date: February I5, 2011 CURRENT YEAR FISCAL IMPACT Funds for these programs are included in the 2010/2011 budget. ONGOING FISCAL IMPACT The BIG program began in 2010, and the Agency will recommend continuing to fund the program during the normal budgeting cycle. The Home Makeover Program is a pilot program. If it is successful, staff will recommend continuing to fund the program during the normal budgeting cycles. ATTACHMENTS Attachment 1 -Business Improvement Grant (BIG) Program -Grant Overview with Map Attachment 2 -Home Makeover Program -Map of eligible area Attachment 3 -Home Makeover Program-- Program Overview Prepared by: Carla Blackmar, Project Coordinator, and Janice Kluth, Senior Project Coordinator, Development Services Department. 9-6 Attachment 1 ~~~~~ Ct2V Or CftIL.A V!SZi~ ~r Redevelopment [HUL4 VISTA 2G"F102LS2t2~T Business Improvement Grant (BIG) Program Grant Overview Business Improvement Grant (BIG) Program Grants offered through the City of Chula Vista Redevelopment Agency (Redevelopment Agency) provide financial incentives to improve the aesthetics and stimulate the economy of Chula Vista's business districts by assisting property and business owners in the following categories: Fa4ade Improvement Grants: • Property and business owners can receive assistance to improve or restore the eMerior of a building or provide additional community or security enhancements, such as exterior lighting. Business Recruitment/Relocation Grants: • Property and business owners can be assisted in opening or relocating their business to Chula Vista's business districts. Who Can Apply: All property and business owners in good standing with the City of Chula Vista, and in good standing with the Property-Based Improvement District (PBID), if applicable, will be considered on a first-come, first-served basis. Applicants must have business or management experience. The Redevelopment Agency will determine acceptable business or management experience at its sole discretion. Grants are awarded based upon the overall description, i.e. scope and quality of the project. Also; grants are targeted to Retail and Restaurant uses along Broadway Avenue and Third Avenue in the Redevelopment Project Area. Grants for Office uses in these areas are available as well, but on a matching-fund basis (50% from property or business owner). All applicants must submit a complete BIG Grant Application, including all of the required supplemental materials. Map of Area: The BIG program is only available to property and business owners located within the Redevelopment Project Areas in the Third Avenue and Broadway Avenue business communities (see map below). Page 1 of 4 Development Services Department- Redevelopment Division Revised: February 2, 2011 276 Fourth Avenue, Chula Vista, CA 91910 9-7 ,~~~// cn~~~ or cis or.a v~rt.~~ '~~~ Redeveiopnzent CHUL4 V[STA Z HOttSltlbr Business Improvement Grant (BIG) Program Grant Overview When To Apply: Applications are accepted on an on-going basis as funding is available. Once the Redevelopment Agenty's current funding allotment is granted, applicants will need to wait for the following year to apply and will be considered if or when funding becomes available. Eligible Expenses: • Window Repair/Replacement • Awning Addition/Replacement • Roof Water Runoff Management (storm gutter repair and replacement) • Signage (recommend use of chonnel lettering) • Exterior Paint (recommend use oflight-colored, reflective, low-VOC paint) • Exterior Lighting (recommend use of energy efficientfixtures) • Landscaping (installation of native orxeriscope plants or artificial turf,• replacement of sprinklers with drip irrigation) Grant Amount Limitations: To ensure that a broad range of business district property and business owners have the opportunity to benefit from the BIG Grants, a grant may not exceed $20,000. An applicant may not apply twice in one fiscal Year and may not apply twice for the same grant category without first obtaining special approval from the Redevelopment Agency Manager. The number of grants approved is limited by the amount of Redevelopment Agency Grant funding available at the time the application is approved. Application Process: Upon receipt of the complete application, designated Redevelopment Agency staff will review the request and supporting documentation for compliance with mandatory project criteria identified in the BIG Application. Applications will then be reviewed by the Redevelopment Agency Manager. The applicant will receive an approval, denial or request for more information from the Redevelopment Agency Manager, and a Notice to Proceed will be issued. Selection Process: Projects eligible for BIG Grant funding must meet the mandatory project criteria identified in the BIG Grant Application. Priority points are awarded to those projects that best meet or exceed the design considerations (when applicable) and additional considerations listed on the BIG Application. The criteria include the overall project description (scope of work), quality of the project, sustainability of the economic activity expected, and the project's overall contribution to the City's business districts, as determined by the Redevelopment Agency. Grant Approval: Upon final approval, the applicant will 1) sign a Memorandum of Agreement accepting the specific terms of the grant, 2) sign a Waiver and Release Form, 3) fill out an IRS form W-9 for Redevelopment Agency records and 4) understand the reimbursement process and grant requirements identified in the BIG Overview. Page 2 of 4 Development Services Department- Redevelopment Division 276 Fourth Avenue, Chula Vista, CA 91970 Revised: February 2, 2011 9-8 ~l~tJ C11'Y OP CII CL3 4t8'IA~ ~ti ~m of Redevelopment criutavesrA e+rKousing Business Improvement Grant (BIG) Program Grant Overview Grant Requirements: Each grant will have terms and conditions specific to the project and identified in the BIG Memorandum of Agreement. Because the Redevelopment Agency is committed to creating a healthy, well- rounded community, we believe that it is important that grant recipients demonstrate solid business practices and ethical standards, including but not limited to: Maintaining an inviting, clean and attractive window display, as determined by the Redevelopment Agency Paying prevailing wage to all subcontractors reimbursed with grant funding, and hiring locally when possible. Requests for exceptions to hiring locally must be submitted to and approved by the Redevelopment Agency Manager. Expending awarded funds by the end of the following fiscal year (June 30t" of the year following grant approval). For example, if a grant is awarded in March 2011, applicant must use grant by June 30, 2012). Applicants: Please initial above to indicate you understand the grant requirements. Reimbursement Process: All grants are administered by the Redevelopment Agency. Funding for recruitment or relocation is from the Redevelopment Agency. Applicants must submit all required materials as outlined in the BIG Application. These materials will not be returned. Staff will review the documents and do awalk-through to make sure all work is completed as agreed upon. Once all work is verified, a request for reimbursement can be submitted for review and approval. The grant reimbursement may take up to 30 days from the date that the request is approved by the Redevelopment Agency. Page 3 of 4 Development Services Department- Redevelopment Division 276 fourth Avenue, Chula Vista, CA 91910 Revised: February 2, 2011 9-9 ~~(~f ClTY Or CRGLn VIS tb~ Redevelopment '_ CHUtA VISTA •.. erHaatszrtg Business Improvement Grant (BIG) Program Grant Overview Process Confirmation Checklist: 1. Mandatory consultation meeting with Business Services Coordinator Applicant Signature Date Senior Project Coordinator Date 2. Complete application and supporting material submitted to Redevelopment Agency Applicant Signature Date Senior Project Coordinator Date 3. Application approved (any conditions of approval are listed below). Applicant receives reimbursement forms and understands all grant requirements. Applicant Signature Date Redevelopment Agency Manager Date Application approved with the following conditions: 4. Reimbursement forms with supporting documents submitted to Redevelopment Agency. Staff will review the documents and do a walk through to make sure all work was completed as agreed upon. Applicant Signature Date Senior Project Coordinator Date 5. A check is mailed to applicant. (Grant reimbursement may take up to 30 days) Applicant's Signature Date Redevelopment Agency Manager Date Page 4 of 4 Development Services Department- Redevelopment Division Revised: February 2, 2011 276 Fourth Avenue, Chula Vista, CA 91910 .9-~Q N C v Block by Block Makeover Project Area: R Woodlawn Park & Broderick Acres __ _ __ 'Project'Are< ~, Attachment 3 ~`~~~ Block-by-Block Home Makeover Program ~~ Woodlawn Park and Broderick Acre Neighborhoods CHUImAVISfA Program Description ciTV or ., ..~-..~ .~~~~ Redevelopment erHvusing Background: Though portions of the Woodlawn Park and Broderick Acres neighborhoods in Southwest Chula Vista are included in the Merged Redevelopment Project Area, these communities have seen little direct benefit from their Redevelopment area status. In response to community requests that more redevelopment funds be invested in these neighborhoods, the City has collaborated with community advocates to develop a pilot program designed to improve the appearance and livability ofowner-occupied residential buildings in these areas. Forgivable Loans for Home Improvements: Through this program, the Redevelopment Agency will provide forgivable loans to single-family residential property owners for improvements to their properties. Property owners will be able to choose from a menu of improvement options, many of which would both make their homes more livable, and simultaneously reduce the home's use of water and electricity, thereby lowering costs. Participant Selection/ Prioritization: Postcards describing the program in both English and Spanish were mailed 7/9/10 to all owner- occupied residences in the Woodlawn Park/ Broderick Acres project area. The postcard included apostage-paid, detachable interest card requesting a response if the recipient was interested in the program. From the time of mailing to October 7, 2010, approximately 41 postcards and 6 calls were received from residents interested in the program. While the postcard did not describe how residents would be selected for the program, in phone conversations a 'first-come, first-serve' system was described. Because the number of people who expressed interest in the program is greater than had originally been expected, it will be necessary to create a prioritization system to determine who will receive assistance first. In order to promote the program goal of making noticeable visual improvement in the community, it seems preferable to make loans to everyone on one block rather than to homeowners scattered across the area. In addition, some blocks within each neighborhood seem particularly in need of improvement. City staff will select the first blocks to participate in this program Marketing The City will host meetings in the blocks with a high response rate to explain the program, distribute applications, and answer questions. These meetings will likely be held at a neighbor's home, but could also be hosted at a nearby public facility (Otay Recreation Center Classroom). Loan Process 1) Borrower Eligibility: Residents on the blocks selected for the program will receive an application in the mail or during the community meeting hosted in their neighborhood. This application form will pre-screen potential participants to ensure that they are the legal owners. This application will require the resident submit the deed of title and their Page 1 RRPP Program Guidelines (DRAFT: 02/15/11) 9-12 ~`(~~ Block-by-Block Home Makeover Program c ~ r~: o r c ~z oi. a ~~, srn ~~ Woodlawn Park and Broderick Acre Neighborhoods Pro ram Descri tion Redevelopment cnvoF g p erHvusing CHULA VISTA most recent mortgage statement. All homeowners in the redevelopment project area are eligible for this program, regardless of income. This application will include a list of eligible repairs, and provide a space where the homeowner can list the repairs they need for their home. 2) Initial Interview: Once the completed application is received, Staff will review the application and ensure that the applicant is the legal owner. If the application is accepted, Staff will schedule an initial interview with the applicant to explain the loan process, prioritize repairs, provide the borrower a list of eligible contractors, and to refer the resident to other City programs (CHIP, Conservation Dept. Programs) for repairs that may not be eligible under the program. Staff will also ask permission to take "before" photographs of the portions of the home that will receive repairs. These photos will both help ensure that the repairs are made as described, and maybe used to promote similar programs in the future. Residents can select repairs from the following list: Home Shell Energy Assessment Or Audit -Assessment to help prioritize what repairs need to be done to your home to make it most efficient. Roof Repair: - replacement of existing roof with light colored, heat reflective roof Home Insulation: - attic/ ceiling insulation - wall insulation - planting of deciduous shade trees Window Repair/ Replacement: - window replacement and weather stripping of windows and doors* Roof Water Runoff Management: - rain barrel installation - storm gutter repair and replacement Exterior Paint: - recommend use oflight-colored (reflective), low-VOC paint Exterior Landscaping: Page 2 RRPP Program Guidelines (DRAFT: 02/15/11) 9-13 ~`~~~ Block-by-Block Home Makeover Program c~rv of ce+c~..a v~srn ~~ Woodlawn Park and Broderick Acre Neighborhoods Pro ram Descri tion Redevelopment : - cmoF g p e'rHou:mg CHULA VISTA Improvements - replace lawn with xeriscape plants or artificial turf - installation of raised beds for vegetable cultivation - replace sprinklers with drip irrigation Water Runoff Management: - replacement of slab concrete with permeable pavers - construction of water management Swale or cistern (retaining wall?) General Clean Up: - hauling of unwanted debris from yard to landfill/ hazardous waste disposal site - weed removal tCertain repairs must be done together,• for example, when windows are replaced, they should also be appropriately weather-stripped It is possible that some of the repairs eligible for the program have not been included on this list. Repairs not on this list may be allowed as approved by the Director of Development Services. 3) Contractor Bids: The resident will request bids for the selected repairs from three local contractors from a list approved by the City. It will be up to each homeowner to decide whether to request three separate contractor bids for each repair, or to bundle all the repairs together when seeking a bid. These contractors will participate in a training session explaining the program as well as other City incentives, and will adhere to certain rules designed to minimize inconvenience to the resident. Because contractors will be paid by the Agency directly, they will be required to pay State prevailing wage. The rules concerning prevailing wage and other program details will be presented to contractors in a contractor information session to be held in advance of the release of the approved contractor list. At this meeting, contractors will also receive information about Conservation Department incentive programs. Contractors who incorporate these incentives and rebates into their bids, and assist homeowners with the rebate process, will be able to bid jobs at a lower price than those who do not. This will encourage contractor awareness and participation in these programs. While contractors will be selected from the approved contractor list, the City (including the RDA) is not a party to any contract for work between contractor and the homeowner. Any dispute between the contractor and homeowner, including disputes about the quality of work and payment, is solely between contractor and homeowner. 4) Bid Submittal: The resident will submit the bids for each itemized repair to the City. Page 3 RRPP Program Guidelines (DRAFT: 02/15/11) 9-14 ~«~~ Block-by-Block Home Makeover Program c ~ rv o r r: E3 c ~, n ~~~ s Tn ~~ Woodlawn Park and Broderick Acre Neighborhoods Pro ram Descri tion Redevelopment cnvor 9 p e'rHouszrtg CHULAVISTA S) Bid Selection: City staff will accept a bid(s) for each repair, generally opting for the one selected by the resident, the lowest price bid, or the one expected to make the home most energy/cost efficient. 6) Affidavit of Responsibility, Deed of Trust and Promissory Note: The City will send notification of the accepted bid(s)to the applicant, along with paperwork the applicant must sign in order to proceed, including the: • Affidavit of Responsibility: requires the recipient to indemnify, hold harmless and release from the City from any claims or losses for any disputes that may arise from the work funded by the loan. This includes any dispute between the borrower and a contractor regarding the quality of work and materials. The borrower will sign a separate form for each contractor completing work on the property. • Deed of Trust: Document allowing the City to place a lien on the property for the amount of the loan. • Promissory Note: Legal document stating the terms of the loan and repayment. If the applicant chooses, the City will schedule a meeting with the applicant to explain these documents, and issue the Notice to Proceed. Otherwise, the applicant can submit these documents by mail, and will receive the Notice to Proceed by mail also. 7) Notice to Proceed: Once the City receives the Affidavit of Responsibility, Deed of Trust and the Promissory Note, it will issue a Notice to Proceed to the borrower. Upon receipt of this Notice the property owner can commence with repairs. At the same time, Staff will also send a notification to the contractor giving the name of the borrower, address, loan amount, and the process for payment. 8) Work Completion: Upon receipt of the Notice to Proceed, the homeowner can work with the contractor to ensure that the repair is completed to their satisfaction. Upon completion, the resident will sign a Request forControctor Payment itemizing each repair completed, and associated cost and submit it to the City for contractor payment. 9) Contractor Payment: The City will pay the contractor directly for the repairs completed. The borrower will be notified of the payment to the contractor along with a receipt itemizing the repairs completed and the cost. Page 4 RRPP Program Guidelines (DRAFT: 02/15/11) 9-15 ~`(~~ Block-by-Block Home Makeover Program c~TV or ce+cc.a vrsrn ~~ Woodlawn Park and Broderick Acre Neighborhoods Redevelopment crrvor Program Description erxousing CHULA VISfA 10) Loan Terms: The loan term begins from the day the signed Request for Contractor Payment is received by the City of Chula Vista. After the payment is made to the contractor, a lien will be registered with the County of San Diego for the total amount of the loan. It will specify that one seventh of the loan will be forgiven each year so long as the borrower or his/her designated heir continues to reside in the home. If seven years elapse without sale, the loan will be forgiven. If home is sold before the end of this period the purchaser of the property will pay the remaining amount at the time of purchase. • If the property is rented to anon-family member prior to the end of the loan term, the borrower must notify the City of this change, and pay the amount remaining of the loan to the City. • If the event that the borrower(s) were to die before the end of the loan term, no repayment would be required unless the inheritor of the home were to sell the property, at which point the aforementioned lien would be paid by the purchaser. These rules are intended to promote stability in the Broderick Acres/ Woodlawn Park neighborhood. Loan Subordination: Staff will consider subordinating the City lien to refinancing, and for a range of other reasons. These situations will be handled on a case-by-case basis by the Staff. 11) Follow-up Visit: A follow-up visit may be conducted by a City of Chula Vista staff member to assess the borrower's satisfaction with the work, to answer questions about the loan, and to photograph the completed repairs. This visit will also ensure that the repairs are completed as described by the homeowner and contractor. Page 5 RRPP Program Guidelines (DRAFT: 02/15/11) 9-16 AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEE TO IMPLEMENT THE BUSINESS IMPROVEMENT GRANT ("BIG") PROGRAM AND TO ENTER INTO AGREEMENTS TO PROVIDE GRANTS AS PART OF THE PROGRAM. WHEREAS, Chula Vista's 2010-2015 Redevelopment Implementation Plan was approved on December 15, 2009, in accordance with State regulations (California Health and Safety Code, Section 33490); and WHEREAS, in support the goals of the 2010-2015 Redevelopment Implementation Plan, staff proposes amending and implementing the Business Improvement Grant ("BIG") Program; and WHEREAS, the BIG program responds to the 2010-2015 Implementation Plan goal of "Stimulating Economic Growth," by offering grants up to $30,000 for facade improvements for retail and service businesses located on Third Avenue and Broadway Avenue in the Redevelopment Project Area, and matching fund grants up to $15,000 for facade improvements to commercial office businesses located on Third Avenue and Broadway Avenue in the Redevelopment Project Area. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista, that it hereby: 1. Authorizes the Executive Director of the Agency or his designee to implement the Business Improvement Grant ("BIG") Program and to enter agreements to provide grants as part of the program. Presented by Approved as to form by Gary Halbert, AICP, PE Assistant City Manager/Director of Development Services i~ ~M1~N Glen R. Googins City Attorney 9-17 AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR HIS DESIGNEE TO IMPLEMENT THE "BLOCK BY BLOCK HOME MAKEOVER" PROGRAM AND TO ENTER INTO AGREEMENTS PROVIDING NO-INTEREST FORGIVABLE LOANS AS PART OF THE PROGRAM. WHEREAS, Chula Vista's 2010-2015 Redevelopment Implementation Plan was approved on December 15, 2009, in accordance with State regulations (California Health and Safety Code, Section 33490); and WHEREAS, in support the goals of the 2010-2015 Redevelopment Implementation Plan, staff proposes the "Block by Block Home Makeover Program"; and WHEREAS, the "Block by Block Home Makeover Program" implements the "Balanced Housing Opportunities" goal in the 2010-2015 Implementation Plan, improving and preserving the City's existing housing supply, by providing $30,000 forgivable loans for exterior improvements to the homes located within the Southwest Redevelopment Project Area in the Woodlawn Park and Broderick Acres neighborhoods. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista, that it hereby: 1. Authorizes the Executive Director of the Agency or his designee to implement the "Block by "Block Home Makeover Program" and to enter into agreements providing no-interest forgivable loans as part of the program. Presented by Approved as to form by Gary Halbert, AICP, PE Assistant City Manager/Director of Development Services Glen R. Googins City Attorney 9-18