Hollister City Council members have been accustomed to approving
applications for facade improvements under a redevelopment agency
program that lends
– and often gives away – money for property improvements in the
district. But this week, the four council members in attendance to
consider an application for Third Street location were split on
awarding $30,000.
Hollister City Council members have been accustomed to approving applications for facade improvements under a redevelopment agency program that lends – and often gives away – money for property improvements in the district. But this week, the four council members in attendance to consider an application for Third Street location were split on awarding $30,000.
Council members Monday voted 2-2 on the consideration, to lend $30,000 to Todd Renz for improvements to 338 Third St., which is JR Plumbing Service. Renz had agreed to cover $49,600 for the upgrades – which include work to such areas as signage, painting, landscaping, doors, lighting, windows and soffit (or overhang work), according to a city report. Under the RDA program, the city offers to pay $2 for every $1 spent by the owner, with a maximum of $30,000 allocated.
The two dissenting voters on the proposal were Council members Robert Scattini and Ray Friend. They noted their opposition because the contract with Renz calls for the loan to be forgiven completely if the owner keeps the property for at least 10 years. If he transfers it, he owes the $30,000 at an interest rate of 7 percent. The city has customarily approved similar agreements with other property owners that forgive the loans after a set number of years.
Council members Doug Emerson and Pauline Valdivia approved of the measure, while Councilman Victor Gomez was absent because his wife recently had a baby daughter.
The council could consider the item again when it meets next March 21. The city staff report noted how $100,000 was budgeted for the program and there is $55,000 left for the fiscal year ending June 30.
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