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HomeMy WebLinkAbout1986/05/07 - Agenda Packet - RDA��cAA1� Cry OF a ! , r• RANCHO CL AMONGA LL REDEVELOPMENT AGENCY p AGENELA 1977 Lions Yark Ccaaunity Center 9161 Base Line Road Rsacbc Cucamuga, California May 7. 19M - 7-nO r.m,, A. Roll Call: Mikels Bugoat _, Zing Dabl _,nand Mrtgbc a3 _. 2- CSK cAlJI= The following Coseent Calendar items are expected to be routine and ¢o:r- eo¢troveraial. ibor vill be sated upon b7 tba RDA at coo time vitbout diseuaaics. A. Approval of Minutes: February 19, 1986 Marcb 3, 1986 B. Approve! to receive and file current Iaveato.•nt Scbedule as of April 30, 1986. BOBS SUBMITTED 5. AG10MMjj 1 2 3 4 []F :f ar Fsbnecy 19, {905 ' CITT C/ URCM COCARIO&CA RMIT LOPNO7 ACOCt VINUM eau L. to taan A rule[ of the 44n41emot Agency at Or City of Rancho Cotaasasa set on Veds.1day. February 19. 1905o in the Liao, fork Ccamnity Cuter, fist fee Liao load, Rancho Csearngs, Doe to the absence of Cbairma Joe D. Xikaie. a anti^ was mde by &log and a Ondc' by lu9cet to appolet Marie. J. ta9uar II an Residing elflcsr of the ruing. Utica carried easel mudy 7 -0-2. The rules b, e I ad to order at 7110 a... by the prMdi,s efficar. Charles J. rages[. .tr !resent were Agescy Uab,ns purls J, Vrigbts Charles J blue II, and Jeffrey list Alan pr'eeat at's 4Krtil' Dll"ter, Laos*, V, War„raant 0enty Director. Jack Lut ed assistant t•trataq, Debts Adam, Ab"ast Chaisson Jon D. Vitale cad Agency Uabtr Richard X. Dahl. ApRwd of giantess KOTICgt Used by tuauet, seconded by Kiog to ap"w, the elected of /wash.. 20. 19SS wed J'nmry 13, 1905. X3ties carried 3 -0-2 Xo.ed by &lag. @wood" by latest to approve the eleerrl of D.e.aber U. 1913. Utica can led 2 -0-2 -1 (Vri,bt abstained niece she see set Resent at tbi• JJ •sae•@ le item eabdttd. •eeaa• f. ttnne aatrw 90 Icons, lositt.d. J •a, sae I, p AA. 6eese71 a frJtinlClry os01TarT eon'rr ( 0 ec -0le set J WON I" AND Coolnu "r lama fro,ar -0 }3 um flQneL_ & ne jAALL aelam foe stet rare Vmr;ACe tt.vne Fran neater_. staff .elect by Jack Las, Deputy Directed us Ole% Jones, m Aull.e. (0303-06 XW '1 XOTIOV4 Xwed by Kiss, e'caald by Wrigbt to apRws. Utica carried Su LmrsI7 3 -0-2. T a � e.a,an J U. eram.elpss w wnnar•.nrt0 Iffi3g,jgy7... Jptyr 'ever sea rn few t Fvn nlenter - eartraL esplw asm 720G.'". Brat report by Jack Lae. Deput7 y' Director. (0203 -06 UA) MOTION, Used by Weighto e'eadd by gin, to gRwe the VW - Capital I -Fewest, finance hogs". Utica toasted susim,.1y 342. ease,• f. aueggauf VO ICVt Vwed by &ia &. ,wended by Wright to edJoc.. the mutes. Utica Carried ee"lrepty 3 -0-2. The rotics "Jwm,d at 7415 P.O. 4,pact4117 evbdttd. Debra Yam �. A.dstut secretary .e batch S. 1986 0627 or IYCLO COCAMMA [097r-CP •T AGYCT lIlOTIS L. 'eves >e mat A -setiog of the lodev l.pmavt Agee" of the City of Sloths Ceemaesi& set os Wednesday, batch S. 1986. is the Lions Park Community Center. 9161 love Lies loo&. reecho Caressed,. The ,reties Wes rdld to order at 7,11 p.n. by Chair., Jas D. hills. present .t• Ages" lanterns Pamela J. Wright. Charles J. latest Iles Licherd No Debi. jet or 91 S. and Chair., Joe D. Mtge Also protest Worst Slstativ. Direstet. Lures No pesaerma.l Deputy Dirmatn. Jerk Lest ad Assistant /"sits". Data. ddsu. a a.aaa so ITGO sullir m [0 ITM 80 ITim •ear ate I. mantc tyiy�( a aasaa "S Ah. A e L Dy &OGR `DC ROI [ eWt tD[eWf�Gd TI[[ HDTDRDt M f I 1 Ryl i DT I[W 9TAnw h e&D ASSAI RTYttn TD 22= I.T., I.M. MM DDRnT. Staff v.part by Jock Age. Cassmi" ORelep..e,t Dlrartor. (0203-06 IDd) uona, lard by Intent, seconded by Wight to Vprote the bdint oll"Itiee as presented by Staff. lotion carried ,s.imaav17 5-01 •eaves• s. uro�9 Before .atiq dlaorsd. Cosatil.e Intent eo9.asted that a itea be broght up for disnstio& rat dLAg losing[. delineate Dittrittso i.e.. buAesw that &[e looking to o1,61de &d bcs they fit Late the loss rote pinare. Mr. V.s.no t stated than information c ld be brought to ce.cit It & later date. MOTION, loved by Debt, smaod. by Ietuot to 4410mrn .anted• Notion'&"Id e.sioessly S-0s The meeting adjourned at Till p.m. Approved, W Csnpestfdly stbsittd. Debt& Ad," Assistant Setrota" RANCHO CUCAMONGA Redevelopment Agency �J. D. enkens a.-. rte, CAvnnJ.O qy n Jem}q KlnQ Rkkerd 5L Dahl PueehJ wrirhl DAM: Nay 7, 1986 TO: Qvrirman and Maters of the Redevelopment Agency FRLM: Jim Hart, Treasurer SUBJECT: Receive and File - Rancho Cucamonga Redevelopment Agency Investment Schedule Status Feport as of April 30, 1986 24ATUUTY JNTIRFBP INS MITIM RILE 411E AQRP7I RAZE =s California Federal Great Western Savings Great Western Savings IAIF LAIF Great Wear= Great Western Great Western First Trust Bank Southwest Bank Royal Wks S 6 L Coast S 5 L Westport Savings Haile Sectsity Federal S d L Eastern S & L Mercury S & L Mutual S 6 L Holden Pacifi.: Bank S--cure S & L _ County Savings 'Ancoli American S 6 L Bunk of America Clen 'gale Federal (Mocker National Bank First Federal Savings Bank Centurion :avinge As of 04/30/86 05/05/86 200,000.00 05/12/86 500,000.00 06/16/86 1,000,000.00 As Needed 1,900,000 00 As NeMed 3,100,000.00 1,188,291.25 500,000 00 100,000 00 500,030.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000 00 100,000.00 100,000.00 100,000.00 100,000.00 100,000 00 100,000.00 500,000.00 100,000 00 500,000 00 100,000.00 :00,000.00 Grand Total 11,488,291.25 3 amRASEUKE ROAD, BUMEC • POarOMCEDOrem7 • R.NCR000CNION'6A.CALIFORN'Aa1730 , (711)589 -lul CITY OF RANCHO C REDEVELOPMENT �1 * L. # i 7 DATE: May 7, 1986 TO: Chairman and Members of the Redevelopment Agency FROM: Jack Lam, AICP, Deputy Executive Director BYt Olen Jones, Redevelopment Analyst SUBJECT: COMMERCIAL REVITALIZATION STRATEGY I. PREFACE: The Redevelopment Plan for the Rancho Redevelopment Project Area was approved by both the Redevelopment Agency and the City Council in Fiscol Year 1981/82. The purpose for selecting the project area was the City`s desire to "revitalize blighted areas" within the City's boundaries 'by creating o Redevelopment Agency, the City Council has also declared its desire to improve, upgrade and revitalize those blighted areas within the City which constitute either physical, social or economic liabilities requiring redevelopm'yt jn the Interest of health, safety and general welfare of citizens of Rancho Cucamong Selection of the Project Area was based upon two criteria which relate to two distinct portions of the project area. The largest portion of the project area suffered from the lack of major Infrastructure Improvements such as adequate flood control channels, grade separations, and an adequate circulation system. The high costs associated with these needed improvements were a deterrent to proper planning end development. The Agency has Initiated a number of programs aimed at alleviating these sources of blight, with excellent results. Selection of the Project Area was also based upon the desire to revitalize existing commercial uses along Foothill Boulevard. Much of this older commercial area was constructed prior to the adoption of the City's General Plan and Development Code. Recently, in an effort to address the problems prevalent In this older oreo, the City Initiated the development of the Foothill Boulevard Specific Plan. Preliminary assessment of the area by City staff indicates the economic viability of the area suffers as a result of poor Image due to marginal business, limited access and poor traffic circulation, poor aesthetic qualities of older commercial structures, Inadequate parking, incomplete or non - existing public Improvements, and inefficient land use patterns. Older commercial uses, many of which are non - conforming to the General Plan, Development Code end Standards, are Intermingled with vacant parcels, newly redeveloped professional or retail commercial uses, mobile (some parks, and single family or multi family housing. This mix of uses results In an inconsistency In condition of buildings, economic stabililty and general atmosphere of the Foothill Corridor. It is this element of "complex inconsistency" which has raised Issues and questicns with the City's political and planning environment. It is evident that these problems cannot be solved by any single program of the City or Redevelopment Agency, but must be addressed tfirga' s1B coordinated effort Involving a variety of plans, programs and alternatives. ,tQ -1 REDEVFL OPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 2 In recognition of this, the Agency recently directed staff to research available commercial revitalization strategies in order to begin developing a comprehensive strategy to address the needs of the Foothill Boulevard Commercial Corridor, which will be identified in the Foothill Boulevard Specific Plan. The purpose of this report Is to summarize the vorirds programs which might be developed into such a strategy. 11. SUMMARY OF OTHER CITIES' PROGRAMS: Son Bernardino (13 , papa at on) San Bernardino commercial revitalization strategy Includes a number of programs targeted at the Mt. Vernon commercial corridor (the old US 395), which has suffered as a result of traffic diversion due to thm canstnxtion of the 1 -215 freeway and new commercial developments in antral and souttmastern Son Bernardino. The following programs are Included. I. City Rebates llor Tj In new and /or expanding businesses in the commerciol corridor, the City will provide the following rebate incentive during the first 'hree years of the life of each such business. (a) 100% rebate of utility services users' tax (b) I00% rebate of business license tax (c) 25% rebate of wnter fee (for new businesses only) 2. Fee Exemptions. All new and /or expanding businesses within the commercial corridor are eligible for a one time exemption from all engineering, planning, :mechanical and building permit fees. Storm drain and sewer fees are not covered by this exemption. 3. Employment Linkage. The overall Intent of the Employment Linkage Program is to attract new business, encourage expansion of existing business, and to stimulate employment opportunities for local economically disadvantaged residents. Th program features the combined efforts of the City's Redevelopment Agency, Economic Levelopment Council, and San Bernardino Employment and Training Agency (SBETA). Under the program, new or expanding businesses, which seek any form of public assistornm to assure successful development, are requested to enter Into a "first source firing agreem -:,t" whereby the employer agrees to use the SBETA as a first source of recruitment for a!l new entry level hires. The SBETA will refer JTPA (Jobs Training Partnership Act) eligible residents for consideration. For any entry level positions created in which an eligible resident is hired and retrained for a minimum of nine months, the employer may receive a cash bonus of up to $1,500 per employee. 5 REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 3 The funding level for this program is $300,000, split equally among the three parties. 4. Small Business Loans. The San Bernardino Economic Development Council (EDC) is a private, non- yrof it corporation established In 1973 by the City, to serve as a coordinating link between private business and local government. EDC assists the City In promoting economic development by providing low- interest loans to small, high -risk businesses. The EDC revolving loan fund was originally capitalized with Community Development Black Grant Funds. It now receives ongoing funding from the City. In on effort to leverage its funds and thereby expand its lending capacity, EDC has contracted with First Inter -Urban Development Corporation of Los Angales to develop and implement an integrated plan for a direct loan and loan guarantee pool under the State's Office of Small Business Development Loan Guarantee Program. Current estimated IeaXg capacity Is $100,000. rs 5. Technical Asslstence. The San Bernardim Redevelopment Agency has recently contracted with the Institute for Public Policy Research, at California State University, San Bernardino, to prepare a "needs assessment study" for the commercial corridor. The purpose of this study is to identify the needs of existing businesses within the area, Identify businesses potentially suited for relocating to the area, develop a marketing approach to rroch those businesses, and Identify any potential financial assistance which may be required. Contract cost is $50,000. Additionally, San Bernardino Valley College will begin offering a regular curriculum aimed at improving the business skills of the small businessmen in the area. There is no cost to the City for this program. 6. Beautification. The Beautification Program provides a financial incentive to owners (or long- term tenants) of commercial properties to invest in exterior beautification and facade Improvements. Approved applicants can receive a grant of up to $1,000 or a 5 %, five - year loon of up to 510,000 for the cost of certain eligible improvements. These eligible Improvements can include facade renovation, sign abatement, weed abatement, street /sidewalk Improvements, and landscaping. Parking lot rehabllltatlon/repaving is not eligible. Budget for this program is $100,000 per year. $20,000 of 11.13 amount is designated for grants. Total staff commitment to these programs is 4. REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 4 Gorden Grove (13 popu of on) Garden Crave has recently adopted a Commercial Revitalization Program to address the need for facade Improvement within the Garden Grove Community Project Area. (Pleese note that property costs in Garden Grove are quite high relative to Rancho Cucamonga) For qualifying Improvements, businesses/owners may receive the follov,ing grants: I. Seventy percent (up to a maximum of $5,000) of the cost of architectural fees for rehabilitation plan preparation. Architectural fees cannot exceed 10% of total construction costs. 2. Twenty five percent (up to a maximum of $25,000) of actual costs for approved parking lot Improvements, landscaping, area fighting and facade Improvements. 3. Up to $25,000 for signoge replocement. 7 City participation under this program is limited to a maximum of $55,000. The =s Redevelopment Agency has budgeted $500,000 for the current fiscal year to Implement this program. Staff commitment is 3 persons. van Nuys (I60, popu anon) The City of Van Nuys o crates a revitalization strategy, In conjunction with the Greater Van t, ✓,s Area Chnmber of Commerce, known as "Vitalize Van Nuys ". This program Is targeted at the central business district of Van Nuys, and operates two primary programs - the "Commercl : Area Revitalization Effort" and the "Small Business Revolving Loon Fund". 1. Small Business Revolving Loan Fund SBRLF). Maximum participation by the SBRLF is $40,000 per project and is based on a percentage of the project cost as follows: Maximum c t Size Participation PS, t 10,000 10,001 to 30,000 80% 30,001 to 50,000 1100,000 60% 50,001 to 75,000 1 40% 75,001 to 30% 100,000 or more 25% Interest rates range from 6% to prime and are determined by the job creatiu: impact of the project. Maximum amortization of the loan is 25 years M REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page S Lour, funds may be used for interior /exterior rehabilitation, purchase of equipment /mochinery; purchase of commercial property for business expansion; working capital (must be secured by real property; cost: attributable directly to the project's fixed assets (e.g., sales and use taxes 2. Commercial Arm Revitalization Effort. This program was developed to encourage merchants and property owners to make physical improvements to their property. The program provides architectural grants and financial Incentives in the form of cash rebates for each qualified business or property. Program benefits are based on commercial increment, which Is defined as a business with up to 40 feet of frontage. Businesses or buildings with frontage In excess of 40 feet may be eligible for Increased benefits. Several options are available to participating businesses. (a) Rehabilitation Rebate Option: A merchant or property owner receives a direct cash rebate when approved property improvements are completed. Rebates are determined as follows: (b) Architectural and Structural Engineering Grantt By utilizing the services of the Von Nuys Project Architect, the program Nill pay the architectural fee for the design of up to $60,000 of property rehabilitation per increment. The architectural fees are calculated at 12% of the cast of the rehabilito•'on project. The participunt will pay the balarse of the architectural fees far projects In uxrss of 560,000. If seisrric reinforcing Is necessary to bring a building Into conrarnance with the City's Seismic Safety Ordinance, and is port of the renovation, the program will reimburse the participant for structural engineering and seismic testing :asts up to $3,000 per project increment. These services must be secured through competitive bid or from a list of City approved engineers. (c) Facade Treatment Grants: Several businesses or property owners who are wilting to edopt a coordinated facade treatment, including signage, are eligible for a grant of up to $5,000 per business to cover the cost of labor and materials Vitalize Van Nuys will coordinate and contract Out dl work. Casts exceeding the $5,000 limit will be paid by the merchant or property owner, however, these costs are eligible for a rehabilitation rebate as follows: 30% of the first 20,000 10% of the final 30 000 MAXIMUM POI 6,000 rebate P 000 rebate rebate y Eligl6le Renovation Rebate 50% of the tint 30% of the next 2 v 10% of the final 0 HAW MAXIMUM (b) Architectural and Structural Engineering Grantt By utilizing the services of the Von Nuys Project Architect, the program Nill pay the architectural fee for the design of up to $60,000 of property rehabilitation per increment. The architectural fees are calculated at 12% of the cast of the rehabilito•'on project. The participunt will pay the balarse of the architectural fees far projects In uxrss of 560,000. If seisrric reinforcing Is necessary to bring a building Into conrarnance with the City's Seismic Safety Ordinance, and is port of the renovation, the program will reimburse the participant for structural engineering and seismic testing :asts up to $3,000 per project increment. These services must be secured through competitive bid or from a list of City approved engineers. (c) Facade Treatment Grants: Several businesses or property owners who are wilting to edopt a coordinated facade treatment, including signage, are eligible for a grant of up to $5,000 per business to cover the cost of labor and materials Vitalize Van Nuys will coordinate and contract Out dl work. Casts exceeding the $5,000 limit will be paid by the merchant or property owner, however, these costs are eligible for a rehabilitation rebate as follows: 30% of the first 20,000 10% of the final 30 000 MAXIMUM POI 6,000 rebate P 000 rebate rebate y REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 6 Total stoff commitment to these programs is 5 persons. Heoldsbur (8,200 population) The City of Heoldsburg hu recently adopted o Facade Renovation Program aimed at assisting commercial property owners or busiriess tenants in improving the appearance of their building facades. Under this program the Redevelopment Agency grants a percentage repayment of eligible costs bsed on the frontage of the building. Building Percent of Front - Feet _ Ins rovem0 Maximum Grant 2 t. or ess 8 , 26 to 35 ft. 75% 3,500 36 to 45 ft. 70% 4,500 46 to 55 ft. 65% 5,500 56 to 65 ft. 60% 6,500 66 to 75 ft. 55% 7,500 more than 75 ft. 5076 18,500 The Redevelopment Agency has Initially budgeted $80,000 for this program. Staff commitment Is I person. Ontario The City of Ontario has recently contracted with "Moinstreet U.S.A" to develop a commercial revitalization strategy for the older downtown commercial area. "Mainstreet U.S.A." is a division of the National Trust for Historic Preservation in Washington, D.C. No specific plan have been developed as of yet. Fullerton The City of Fullerton has focused its commercial revitalization efforts through a redevelopment project area It has concentrated on the rehabilitation of existing coaLmercicl space, small loan programs for exisiting bnusinesses, and architectural review. No detailed commercial revitalization strategy has been developed, rather, assistance has been handled on a eau by case basis. WNttier The City of Whittler has instituted an "urban design district ", the, purpose of which was to establish architectural design standards for the older commercial area. This required any rehabilitation program to bring :he building into conformance with the standads. In caa!unction with this program, the city adopted a sign ordinance eliminating Internally illuminated signs. No detailed financial assistance program for commercial revitalization has been developed, ratth r, assistance is considered on a case by case basis. N REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 7 Corona (43,3ffj�p7u ation) The City of Corona has recently completed a Downtown Revitalization Study, similar to our Foothill Corridor Study underway, the stated purposes of which were "to define major problems of the downtown area, explore with the City and Interested community members a variety of alternative solutions, and Inititate a program of future actions to Implement a revitalization solution". The study included detailed Investigations of the following areas. I. Existing Land Use and Condition. The study examined the area to determine population, employment, and construction trends. An inventory and analysis of existing uses was performed to clearly define the problems within the study orea. These specific problems were then examined In the light of the City's stated goals, resulting In the definition of five primary target areou 2. Protected Ecrorwm' I Conditions. The study then focused on the projected growth of the City. An estimate of population growth resulted in projections of housing demand, which, In turn, npocted both retail space demand and office space demand These projected demand figures were then exomir -d to determine their impact on the revitalization of the study area. Further definition of the constraints affecting the revitalization resulted 3. Infrostr,:cture Analysis. The study also examined the existing Infrastructure in the study area. In this analysis, elements of concern Included the street /eirailatlon system within and affecting the study area, storm droln systems and related flood control problems, water and sewer systems, and other utilities' mpacities. Needed Improvements were iaentified, especially as they impacted the revitalization of the study area Resulting from these four areas of analysis, a comprehensive approach to the revitalization of the area was developed This plan Included suggested programs to address the problems defined, including a master plan approach to Infrastructure Improvements, an architectural review commiltee.. to assure the development of a unified architectural identity for the area, necessary general plan and policy amendments, and development of financing mechanism to pay for the necessary Improvements. Each of these were then analyzed to determine their relative planning, economic and engineering feasibility, and recommerded priorities. Many of the cities contacted were In the process of formulating new commercial revitalization f_ogroms, oral were unable to respond with Information. However, as the additional Information is recelyed, updates will be provided for the Agency. REDEVELOPMENT AGENCY STAFF REPORT Commercial Revito:izatlon Strategy May 7, 19PS Page 8 III. ANALYSIS Foothill Boulevard has a dual function as the major commercial corridor and primary east -west transportatio a artery in the City. The importance of th:s eurridor to tho life of the City, as well as some of the problems related to development along Foothill have been identified in the City's General Plan, the Redevelopment Plan and City policy. Recently, In an effort to address these problems, the City initiated the development of the Foothill Boulevard Specific Plan. The stated purpose of this plan is to establish a high quality, attractive, and unifying design imote reflective of community heritege,l and to provide a viable setting for a balance of residential and commercial activities with safe and efficient traffic circulation and access. In the process of oreparing such a pion, the following issues will be examined. Urbon Dui n Poor aesthetic quality of oiJer commercial and residential structures; m-con ormnng lots too smolt to meet current standards; inconsistency of landscaping aid sharp contrast between n velopment and older structures; arthilecture which does not promote community t City; unattractive streetscope caused by Inconsistent landscaping and public Improvements; vehicle corking /storoge; overhead utilities; billboards; and outdoor displays. Land Use: Strip commercial development with fragmented ownership; small non. coTrmTng lots; conversion or removal of older single forrily strictures for commeretoi development; land use transitions from adjoining single family subdivisions or mobile home parks to commercial and multi- family uses; and appropriate mix of commercial, office and multi - family designations. Traffic and Circulation Incomplete street improvements with varying pavement width; uncontrolled nn— movements and interrupted traffic flow caused by numerous driveways,, ock of traffic signals or a median island; and balancing the need for access to individual properties while maintaining efficient traffic flow. Ecoqqmte Viabilit Poor image related to marginal businesses; limited access as a result o the panne median and combined driveways; potentl�' �poct of Implementation strategy on existing viable businesses; and appropriate m ommerciol activities Upon identification and analysis of each of the areas above, the following products will be developed. 1. Definition of Subarea Analysis o the corridor will Indicate that specific a,.•weos exist which share the same general development potential and constraints. Definition of these subareas, with their related assets and needs, will help to indicate the type of strategy best suited for their revitalization. A detailed report of the findings of the task will be produced tiIving clear indication of the need: of both the subareas and the entire Foothill Boulevard corridor. /I y REDEVELOPMENT AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 9 2. Land Use Alternatives. On a parcel by pares basis, the alternative land uses for the subareas will be examined and defined. This step Is important In the revitalization strategy, as it will provide a framework as to what types of development should occur In each subarea. 3. Urban Design Plan. eta eD tl d urban design plans for each subarea will be developed, iwAuding architectural Identity, master planning of particular development sites, and streetscape design. When complete, the study will produce an Implementation program which will detail the specific needs of the entire Foothill Boulevard Commercial Corridor. This Implementation p1wT should Include the coordinated efforts of the Agency and City, especially as regards Agency financing of any program. IV. POTENTIAL PROGRAMS, The following sections suggest potential programs which could be structure toe once the revitalization efforts along Foothill Boulevc '. Any specific type of prc,rem v4od need to be fully developed and funned for implemeniction. Therefore, ontl'general descriptions are given s A. IMAGE I. Problem, Poor aesthetic quality of older commercial and residentiai structures, architecture which does not promote community Identity, inconsistency of landscaping and sharp contrast between new development and older structures. 2. Program: (a) Adopt specific design standards for each Identifiable subarea within the corridor. (b) Establish a revolving loan program to provide low Interest loans for specific eligible mprovements to those developments no; in compliance with the design standards. This loon program should b restricted to larger improvements ($5,000 or more) and Ncwed on exterior improvements, including facade renovation, landscape upgrade, or parking Improvements. (a) Smaller developments (less than $5,000) should be funded through a grant program, based on need and priority of subarea 3. 82d2et: Due to the possible scale of this type of program, the revolving loan fund cou The very large. Since the monies loa,ed would eventually be repaid, the fund could ultimately become self - supporting if kept in existence long enough. There would, however, be a period at start -up in which the funds could be depleted until the repayments began. Such a revolving loan fund could easily require up to $1 million The grant fund could be capitalized with $10%000, which would service a moximum of 20 businesses. REDEVELOPMENi AGENCY STAFF REPORT Commercial Revitalization Strategy May 7, 1986 Page 10 4. Constraints. The initiation of such a revotving loan fund could require up to 1 -1/2 star pert( sons to evaluate loan applications, coordinate design packages with planning and building and safety, ensure proper secu,ity for the loan, nandle escrow matters, and monitor the construction of Improvmends and repayment of the loan. The grant program, though net nearly so cumbersome as the loan program, would still require considerable time to review the grant applications, evaluate the proposed improvements, coordinate with planning and WlIding and safety, and monitor the construction of improvemnts. Additionally, the funding of facade improvements prior to the determination of subarea architectural design standards could either negate the effectiveness of the Specific Plan, or require that the Agency replace improvements just recently completed. B. PUBLIC IMPROVEMENTS I. Problem: Incomplete street Improvements with varying pavement width; lock of tra tads or a median island; uncontrolled traffic movements; overhead utilities. 1!ow 41 Pr ram:ram: Construction of and/or upgrading of existing public lmprove- entn undegrounding utilities. the program would provide for needed public Improvements throughout the corridor, Including street wideningtrepair; installation of curbs, gutters, and s'dewalks; street lighting, as necessary; hstallattcn of median Island; installation of traffic signals; undergrounding utilities. 3. Buddet: Because the scooe of needed improvements has yet to be determined, no realistic budget can be formulated, but such a program is potentially expensive. 4. Constraints Initiation of a capitol improvement program along with the corridor wire aundetermined Impact on 11% staffing needs of the engineering division. Additionally, the piecemeal Installation o$ . public improvements prior to determination of need and establishment of a comprehensive approach will either negate the effectiveness of the Specific Plan or require that the Age,xy replace improvements just recently completed. C. LAND USE 1. Problem: Smail non - conforming lots, inconsistent land use transitions; Inadequate access to developable lots. 2Pro ram: Assemble vocant and /or non conforming lots Into centralized, developobT -property. operty. This program would require the Agency to acquire small, irregular, non - conforming parcels In order to assemble a site whleh would support the development of Inteyroted centers providing a full range of goats and smites property 10 /3 REDEVELOPMENT AGENCY STAFF REPORT Commercial Revl:ulizatlon Strategy May 7, 1986 Page 11 relating to tie Irdivlduut subarea served Once acquired, any necessay zone charges and/or new pa•r:llzotion would have to be accomplished Any existing structures upon the acquired peecels would hava to be evaluated to determine the need for demolition or rehabil: :cftrr. Any • esidents or businesses located on the property would have to Le relocated 3. Budaete Because the scope of the assembly cannot be adequately determined (itiTre, no .,,_ sstic budget can be set. The cost of assembly will vary from site to site depending on the nu-vber of owners, location, necessary relocations, demolitions, etc q. Constraints: Assembly of Inge sites from a number of smut ownerships tends to be an`e procedure. Assenib ing a large site might requi �e expenditure by the Agency which could not be recouped through resole. This is especially true in an where oreo likely blacks available ilpitily, assembly will requir he use ofnminentdomd, which s ofie politically undesirable. Relocation of existing busineSSes and /or residents is o time - consuming, expensive'-" process. Also, the possibility of funding such a transaction is tampered seriously by the prospect of federal tax reform legislation. As current%, proposed (and passed by the Howe), tax reform would eliminate tax - exempt financing for lard assembly when the assembled site is to be sold at below - market prices. Perhaps the largest constraint to land assembly Is tho Ian: of tax increment. When land title is transferred to the Agency, it Is removed from tie tax rolls until it Is sold and is again in private ownership. For that period of time, the Agency would receive no tax increment. D. MARGINAL BUSINESSES 1. Problem: Poor economic Imapt due to marginal h�alr•�s. 2. Program: In conjunction with Chaffey College and the Rancho Cucamonga Chamber of Comma. e. develop a curriculum to develop good business and management skills of current wd pot.:ntial small businesse.% Such a course could teach the principles of purchasing, murketin!t, payroll, management, maintenance, etc to help ensure that the small businesses within the corridor have recess to additional training to run their businesses It would also help to Identify those Wividuals potentially suited for small business ventures. 3. Budgets The budget for this program couN be varied denonding upon Its scope. 4. Programs In conjunction with the educational program outlinrd above, the City /Agency could establish a commercial incubator program within the corridor. The /y REDEVELOPMEW AGENCY STAFF REPORT Commercial Revitalization Strategy May 7,1986 Page 12 p.rrpose of such a program would be to reduce the initial financial exposure and risk to start -up businesses by providing a common facility, housing four to ten small businesses, featurh,y reduceu rent structures, techniml assistance, common •narketing and office support, cud flexible space and lease arrangements. Those Individus:ls identified In the educational program as likely successful small business persons could reccl� piiurtty consideration for participation In the incubator project. S. Constraints In order to structure such a - rogram, analysis of available sites endlor structures must be performed to deterr If an existing facility could be converted to such use. Management of on incubator facility would demand at least a full -time staff person to oversee both the educational program and the day - today operations of the facility. IV. RECOMMENDATION I.Coordination: Because of the City's recent cemmhment 7a V a development of the Footh Bou evad Spec{yl;,plan, it Is Incumbent upon the Agency to coordinate any • evitalization efforts with f4 program development of the Specific Plan This will mss both prevent any conflicting gods and/or programs and help to ensure the success of the Specific Plan, thereby maximizing the available resources. 2. BBudgettt Tax Increment for the Redevelopment Agency Is fully committed through f srnf I year 1986/87 for Its existing project commitments. Tax Increment projections for fiscal year 1987/88 Indicate potential additional fe-sds avoilable to as:-xne additional debt and the Agency would need to evaluate any proposed commercial revitalization strategy along with any other competing program to determine which would be funded. Since the Foothill Boulevard Corridor Study is scheduled for completion within the next fiscal year, coordination of program development with program funding decisions would be compatible. Although staff would recommend that program Implementation be consistent with the Foothill Boulevard Corridor Study, the decision of whether to Implement an u case -by -case basis or a more comprehensive approach Is o policy decision that needs to be determined by the Agency Board. Respec fully subrrSjt e4 Jock Lem. Deputy Executive Director JL /OJ /kip 12 (15�