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CC Resolution 9168 '" RESOLUTION NO. 9168 A RESOLUTION OF THE CITY OF CAMPBELL CITY COUNCIL ADOPTING GUIDELINES FOR DOWNTOWN BUSINESS ASSISTANCE WHEREAS, one of the major goals of the Central Campbell Redevelopment Plan is to restore downtown Campbell to its historic role as the symbolic, cultural, functional and economic focal point of the City; and WHEREAS, the City of Campbell Redevelopment Agency's Five Year Implementation Plan and City of Campbell Economic Development Plan identifies business assistance and attraction programs that provides for financial assistance to desirable businesses that would contribute to the economic and civic revitalization of downtown; and WHEREAS, it is necessary to establish a policy that provides criteria and standards for the City of Campbell Redevelopment Agency, the City of Campbell and the Campbell community as to how and when business assistance may be applied. NOW, THEREFORE, BE IT RESOLVED, that jointly with the City of Campbell Redevelopment Agency Board, the City of Campbell City Council hereby adopts the attached Downtown Business Assistance Policy. PASSED AND ADOPTED, this 19th day of November, 1996 by the following roll call vote: AYES: Councilmembers Burr, Conant, Watson, Furtado, Dougherty NOES: Councilmembers None ABSTAIN: Councilmembers None ABSENT: Councilmembers None APPROVED' ATTEST: a~ ~ Anne Bybee, City Clerk CITY OF CAMPBELL REDEVELOPMENT AGENCY POLICY FOR PROVIDING DOWNTOWN BUSINESS ASSISTANCE 1. PURPOSE A primary goal of the Central Campbell Redevelopment Plan is "to restore downtown Campbell to its historic role as the symbolic, cultural, functional and economic focal point of the city. " To that end, incentives may be necessary to attract the right kind of business and private investment that will advance downtown revitalization. How and when business assistance is provided should be determined through careful analysis and evaluation of the merits and risks involved with each project. This policy establishes standards for review when considering proposals for assistance to attract or expand a desirable business downtown. These standards are intended to be used as a guide for the Redevelopment Agency Board and staff when considering downtown business assistance. 2. POLICY The policy statements below shall serve as the general criteria for reviewing business assistance proposals. This criteria shall serve as fmdings when approval of a business assistance proposal is considered. a. Downtown business assistance is intended to be used judiciously for those exceptional projects that clearly further the revitalization of downtown and assist the Agency in achieving its redevelopment objectives and goals. b. A business assistance proposal for expansion or relocation must demonstrate a clear and present benefit to the commercial success of downtown. An example of the kinds of businesses that would typically fall into this category are selected eating establishments and retail uses that have demonstrated commercial success and are considered destination points drawing not only local residents but other patrons as well. c. The revitalization of downtown must be a public/private partnership. Participation fmancially by the property owner and/or business owner is a condition of any downtown business assistance project. d. Conditions may be imposed on agreements for business assistance so as to protect the interests of the Agency and to minimi7.e risk. e. Each proposed business assistance project will be reviewed on a case-by-case basis taking into account the expected benefits to the downtown, the Agency's return on investment either fmancially or in terms of furthering redevelopment goals and objectives, and the availability of Agency funds. ...."... 3. ELIGmn..ITY a. The central core of the downtown is E. Campbell Avenue bounded by Civic Center Drive and Orchard City Drive to the north and south, Winchester Boulevard to the west and the railroad tracks to the east. The priority of business assistance and revitalization efforts should be concentrated in this area. 4. PROCEDURE a. The Downtown Committee shall review all business assistance requests and supporting documentation prior to Agency Board/City Council consideration and shall forward a recommendation to the Agency Board/City Council. b. All business assistance packages shall be approved by the Agency Board or, when considering fee waivers, by the Agency Board/City Council acting jointly. Granting of business assistance shall be adopted by resolution at an open public meeting. c. A loan agreement, promissory note and Owner Participation Agreement as required shall be executed. All loans shall be secured with real or personal property, and a UCC-l form shall be filed with the State as required. 5. BUSINESS ASSISTANCE TERMS a. A fmancial proforma, business plan and Letter of Justification shall be submitted to the Agency for review illustrating how the business furthers the Agency's downtown goals and objectives, meets the criteria established in Section 2, and demonstrates the need for business assistance. b. Businesses receiving business assistance shall have leases for a period of no less than five years. c. For forgivable loans, the business shall be required to be established for no less than three years. d. Submittal of supporting documentation such as annual fmancial statements and tax returns that demonstrate a history of commercial success is highly encouraged. e. Business assistance funds shall be used for on-site or off-site capital improvements associated with the project. No funds will be made available for advertising, fees required from outside permitting agencies, or other costs not directly associated with capital improvements . .-\ 6. BUSINESS ASSISTANCE FORM AND SUBSTANCE a. Business assistance may be provided in a variety of forms. The form and substance of assistance will be determined based on: i) The cost of improvements required by both the business owner and the Agency; and to the degree those improvements and the business itself further the goals and objectives of the Agency. Typically, the assistance would be associated with storefront improvements and enhancements, and writing down the cost of restaurant improvements. ii) The reputation and experience of the business owner shall be demonstrated and the degree to which the property owner is participating is also a consideration. b. The form in which assistance may be provided includes the following: i) Commercial Loans . A maximum amount of $15,000 may be provided in the form of a forgivable loan in which after a specified period of time the debt may be forgiven if the terms and conditions of the loan agreement are satisfied. . A maximum amount of $50,000 may be provided in the form of short term, low interest loans. The interest rate shall be consistent with the average return on investment of City/Agency funds, and the term may range between 12 and 24 months, depending upon qualifications. ii) Fee Waiver . Certain permit fees may be waived as an incentive for attracting desirable businesses downtown. When considering waiving fees, the Agency Board and City Council shall act jointly. In doing so, the Agency Board/City Council shall consider the economic impact on the General Fund. The provision for business assistance is solely at the discretion of the Redevelopment Agency Board/City Council. Under this policy, the Agency Board/City Council has no obligation to approve or grant use of redevelopment funds if in its judgement a project does not meet the prescribed purpose and goals of the Central Campbell Redevelopment Plan or it is determined adequate funds are not available. This policy is intended to be used in the Agency's business attraction efforts in the downtown area. This policy does not preclude the Agency from participating in larger redevelopment projects in the downtown area including property acquisition through Disposition and Development Agreements, Owner Participation Agreements or other means to further the goals and objectives of the Central Campbell Redevelopment Plan.