Submitted By: Tye Chighizola
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Presentation By: Tye Chighizola
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve revisions to Downtown Community Redevelopment Area (CRA) Commercial Building Improvement Grant Program.
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The intention of the Downtown CRA Commercial Building Improvement Grant program is to encourage private investment in commercial properties in the Downtown CRA. The program addresses key statutorily defined blight conditions that currently exist in the CRA including vacant or underutilized commercial space, obsolete or substandard interior spaces, inadequate life safety and/or accessibility provisions, and deteriorating or inappropriate facades.
Priority work elements are: (1) Improvements to meet Building Codes for Accessibility; Fire Protection; and Life Safety; (2) Conversion of upper floor space to residential; (3) Removal and replacement of inappropriate or incomplete exterior restoration of original façades, including installation of appropriate store front windows; (4) Other fixed improvements related to build-out or additions. Fixed build-out improvements include walls & structural elements; electric, plumbing, HVAC, lighting - interior & storefront, flooring & ceiling, kitchen equipment for restaurants.
The Downtown CRA Commercial Building Improvement Grant program has had significant success in recent years. From FY 2016 - FY 2021, the Downtown CRA Fund awarded 60 commercial grants totaling $1,197,765. Of the 60, 27 were for façade improvements, 25 were for interior renovations or buildouts and 8 projects involved both interior and exterior work. Thirty-four (34) involved change of use, where vacant spaces were reactivated.
FINDINGS AND CONCLUSIONS:
At the October 26 and December 14, 2021 Downtown Advisory Committee meetings, the committee and staff discussed the direction of grant program and possible changes to the program framework that could be made to continue to improve the impact of grant. The finding was that the program has met its initial objectives, but that refinement is needed to keep up with the trend of larger projects. The recommendation is that the grant program should be targeted to major renovation / rehabilitation projects and minor alterations that are typically considered as maintenance and repair items should not be eligible. The details of the recommended revisions are listed below.
Recommended Revisions to Framework of Downtown CRA Commercial Building Improvement Grant Program
The program includes both façade work and interior renovations. For facades, the intent of the proposed grant revisions is to target projects that undertake a comprehensive restoration of facades that were inappropriately altered and /or renovations that make the building more in compliance with form-based code design and development requirements. Examples of work items that would be eligible and those that would not be eligible:
o Painting - only as a component of major restoration or renovation project. Painting and repair of façade alone is a routine maintenance item and would not be eligible for a grant.
o Canvas Awnings - new or replacement are not eligible in any type of project.
o Metal Awnings - are eligible in any type of project.
o Repair / Replacement of doors or windows - only as a component of major restoration or renovation project not as a stand-alone item.
o Signage - not as a single item and only as a component of major restoration or renovation project and must be consistent with Form Based Code - Marquee signs preferred
For interior renovations, the intent of the proposed grant revisions is to target projects that involve comprehensive renovation projects, such as new tenant build-out of vacant space. These projects would typically involve changes to these building components:
o Structural
o Fire protection (sprinkler system), Life safety
o Accessibility, ADA
o HVAC, plumbing, electric
Examples of individual work items that would not be eligible single purpose projects:
o Cosmetic, material change outs - flooring, ceiling
o Fixtures, furniture, equipment
The revisions to the grant program are necessary to continue advancing the revitalization of the City’s Central Business District. Use of the CRA funds for this building improvement grant program is appropriate and consistent with the Downtown Master Plan and the Downtown CRA Redevelopment Plan. The grant match and maximum amount will remain at 1:1 (50%-50%) match and the maximum grant of $25,000.
FISCAL IMPACT:
No additional funding is required at this time. The Downtown Grant Program account - 621-016-012-559-55-82010 will continue to be used.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW: N/A
ALTERNATIVE:
• Approve
• Approve with changes
• Deny
• Table