Official had shown concern about payback policy
The Hollister City Council on Monday decided against changing
much in the redevelopment agency’s facade improvement program.
Council members received a report at Monday’s meeting in light
of concerns expressed in recent weeks about the program. Council
members agreed to keep the program as it stands, while they
directed staff officials to look at tightening guideline
restrictions, such as the use of mere painting as an
improvement.
Official had shown concern about payback policy
The Hollister City Council on Monday decided against changing much in the redevelopment agency’s facade improvement program.
Council members received a report at Monday’s meeting in light of concerns expressed in recent weeks about the program. Council members agreed to keep the program as it stands, while they directed staff officials to look at tightening guideline restrictions, such as the use of mere painting as an improvement.
The city council, in its role as the redevelopment agency board, was set to receive a report about the program guidelines at an April meeting, but the matter was continued after Councilman Robert Scattini questioned the value of the redevelopment agency making loans that conceivably would not have to be repaid.
The RDA established the facade improvement program in 1992 as a way to encourage downtown property owners to upgrade the face of their building by offering matching funds from the city. The program was suspended due to financial constraints the next year but was revived in 1999.
Annual funding for the facade improvement program started at $300,000 in 1992, when loans up to $1,000 were offered for painting and sign improvements and grants from $1,000 to $5,000 were offered at a one-to-one match. The city funded the program at $50,000 per year from 2000-02 and budgeted $100,000 per year from 2003-09, when the two-for-one funding match was implemented.
The budget was doubled to $200,000 in 2010 when the one-to-one match outside of downtown was added.
Prior to 2010, loans made to building owners were forgiven after a period of five years as long as the property was not sold or transferred. If the property sold within the initial five-year period, all principal and interest – at a rate of 7 percent – became due.
Last year, the repayment period was extended from five to 10 years and a one-to-one match ratio was established for facade improvement projects outside of the downtown area but still within the scope of the redevelopment agency. As part of the program change, a two-to-one dollar match was established for the downtown area.
