The Hollister City Council last week approved new commercial
facade improvement program guidelines that will limit the amount of
money the Redevelopment Agency will loan to businesses for exterior
paint jobs.
The modification was spurred in part by concern over two $20,000
loans the RDA made to K
&
amp;S Market in 2009 for painting of the shopping center that
housed the former Fortino’s Total Home store and other businesses
on Tres Pinos Road. At the time, some council members expressed
concerns over the facade program guidelines, which included a
provision denoting exterior painting work as a
”
significant change
”
to a building and therefore eligible for funding assistance.
The Hollister City Council last week approved new commercial facade improvement program guidelines that will limit the amount of money the Redevelopment Agency will loan to businesses for exterior paint jobs.
The modification was spurred in part by concern over two $20,000 loans the RDA made to K&S Market in 2009 for painting of the shopping center that housed the former Fortino’s Total Home store and other businesses on Tres Pinos Road. At the time, some council members expressed concerns over the facade program guidelines, which included a provision denoting exterior painting work as a “significant change” to a building and therefore eligible for funding assistance.
Under the new rules adopted last week, painting costs cannot exceed 50 percent of any facade loan given, though special consideration will be given if the building in question is a historic structure.
“One that got everybody’s attention was the building on Tres Pinos,” said William Avera, Hollister’s development services director. “That was a huge deal, but it was approved because it met the facade guidelines at the time.”
Since its inception in 2000, the Facade Improvement Program has assisted more than 30 property and/or business owners in retrofitting or visually enhancing storefronts. The program, which is meant to be an incentive for building owners to enhance the appearance of their property, focuses on the downtown area, with businesses in that area eligible for up to $30,000 in loans on a two-for-one match. The city budgeted $100,000 for the program for fiscal year 2011-2012.
The facade program also extends to businesses that are outside of downtown but still within the redevelopment project area. These are eligible for up to $20,000 in funding on a dollar-for-dollar match.
An easement agreement between the loan applicant and the RDA secures the loan and provides the agency the ability to be repaid if the property’s ownership changes hands within 10 years. The deferred loans require no monthly payment unless the property changes hands during that time. If that occurs, the RDA is owed the principal amount plus interest at 7 percent per year.
Buildings that were constructed within the past 15 years or have received a facade improvement loan during that time are not eligible for another facade improvement loan, though “exceptions may be reviewed on a case-by-case basis,” according to the guidelines.
The City Council, in its role as the RDA board, last week approved a $20,000 facade improvement loan for the property that houses AJ Sushi at 737 San Benito St. Planned improvements include a new roll-up door, a new door and light at the rear of the building, new shutters and paint.
