RES-ORA-0469 Small Business Assistance Programs for Amended Redevelopment Project AreaRESOLUTION NO. ORA-
0469 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY AMENDING
AND RESTATING THE ORANGE
REDEVELOPMENT AGENCY'S SMALL BUSINESS
ASSISTANCE PROGRAMS FOR THE ORANGE MERGED
AND AMENDED REDEVELOPMENT PROJECT
AREA.WHEREAS, by Resolution No. ORA-0456 adopted on August 22, 2006,
the Board of Directors (Agency Board) of the Orange Redevelopment Agency (Agency)
established the Small Business Assistance Programs (the Original SBA Programs), under which
the Agency would loan funds from tax increment revenues of the Orange Merged
and Amended Redevelopment Project Area (the Project Area), bond proceeds, and any other funds
of the Agency legally available therefor to qualified owners or tenants within the Project
Area for the purpose of rehabilitating commercial buildings or
structures; and WHEREAS, the Agency Board desires to amend, modify and
supplement certain portions of the Original SBA Programs by replacing the description of the
various programs that was attached as Exhibit A to Resolution No. ORA-0456 with the
description of the Amended and Restated SBA Programs in the form attached hereto as
Exhibit A and incorporated herein by
this reference; and WHEREAS, the Agency Board has duly considered all of the
terms and conditions of the Amended and Restated SBA Programs in the form attached hereto
as Exhibit A.NOW, THEREFORE, be it resolved by the Board of Directors
of the Orange Redevelopment Agency, on the basis of the facts set forth in the agenda report
presented to it and any testimony received at the meeting at which this matter was
considered, as follows:Section 1. The foregoing recitals are
true and correct.Section 2. The Amended and Restated SBA Programs, as
more particularly described on Exhibit A attached hereto, are hereby approved for the purpose of
amending and restating the Original SBA Programs that were established by the Agency Board by
the adoption of Resolution No. ORA-0456 on August 22, 2006. The Amended
and Restated SBA Programs are intended to replace the Original SBA Programs and to
reflect the amendment and restatement of
the Original SBA Programs.Section 3. The General Counsel for the Agency is hereby
authorized and directed to prepare, or cause to be prepared, all documents deemed
necessary and appropriate
to implement the Programs.Section 4. For loans under the Amended and Restated
SBA Programs to qualified owners and tenants within the Project Area having a value of $60,000
Director is authorized, on behalf of the Agency, to review the recommendations of the Loan
Committee (as established under Resolution No. ORA-0456) and, to approve or
disapprove such applications, and, if approved, to take such steps and execute such documents on
behalf of the Agency as are necessary and appropriate in order to make loans under the
Amended and Restated SBA Programs and to otherwise effectuate the purposes of this
Resolution.Section 5. The Agency Board shall review the recommendations of the
Loan Committee for loans under the Amended and Restated SBA Programs to qualified
owners and tenants within the Project Area having a value in excess of $60,000, and to approve
or disapprove such applications. If approved by the Agency Board, the Agency's
Executive Director is authorized to execute such documents on behalf of the Agency as are
necessary and appropriate in order to make such loans under the Amended and Restated
SBA
Programs.Section 6. The officers and employees of the Agency are authorized and
directed,jointly and severally, to do any and all things necessary or advisable in order to effectuate
the purposes of this Resolution and to administer the Agency's obligations, responsibilities
and duties to be performed hereunder and under the Amended and Restated SBA
Programs.ADOPTED this 11th day of September,
2007.
ATTEST:
L. =:(:,Ma. hy,
Clerk- ~..I, MARY E. MURPHY, City Clerk of the City of Orange, California, do
hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the II
th day of September,
2007,by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:DIRECTORS: Smith, Murphy, Cavecche, Dumitru,
Bilodeau DIRECTORS:
None DIRECTORS:
None DIRECTORS:
None t.
e y,
Clerk
EXHIBIT A
AMENDED AND RESTATED
SMALL BUSINESS ASSISTANCE PROGRAMS
The Small Business Assistance Programs (Programs) is being established by the Orange
Redevelopment Agency in an effort to promote and encourage property owners and tenants
to rehabilitate commercial, retail and/or industrial properties located within the Orange
Merged and Amended Redevelopment Project Area (Merged Redevelopment Project Area).
The Programs are comprised of six (6) loan programs designed to provide incentives to
property owners and tenants to upgrade signage, enhance landscaping, improve exterior
facades and other property improvements. The Programs offer financial assistance in the
form of forgivable loans to encourage new investment, increase property values, facilitate
deferred or much needed interior and exterior property improvements, and to assist tenants
and businesses seeking to start-up, expand or relocate into the City of Orange.
Property owners and tenants may receive funding under more than one loan program at one
time,however, future assistance shall not be given until the existing loan terms have been
fulfilled.1. PROPERTY IMPROVEMENT LOAN
PROGRAM The Property Improvement Loan Program is an interest-free loan program created
to meet the needs of property owners and tenants to fund exterior fayade and other
on-site property improvements that are. necessary to improve the visual appearance of
the building and property in the Merged Redevelopment Project Area. A Qualified Small
Business under this program shall include property owners that have an ownership interest and/
or tenants that have a leasehold interest in a commercial and/or industrial property
located within the Merged Redevelopment Project Area. Property Improvement Loan Program
criteria
are as follows:o Minimum loans of$5,000 up to a maximum
of $250,000;o Loan shall
be interest free;o Loan repayment shall be deferred for the first 12 months from effective
date of
the loan agreement;o Assistance requests less than $60,000 shall be in the form of
an unsecured loan;o Assistance requests in excess of $60,000 shallrequire collateral and/or
security in the form of a deed of trust or other
appropriate security instrument;o Term of the loan shall be negotiated, but will not
exceed 10 years;o Upon timely repayment of the first 75% of loan, the remaining 25%
of the loan balance shall be forgiven upon satisfying
certain
agreed-upon performance conditions;o Qualified use of funds may include: exterior
fayade treatments, exterior painting,building and parking lot lighting, parking lot
improvements including resurfacing and re-striping, utility under-grounding, architect
and engineering fees
and other needed on-site improvements; and o All contractors performing the work shall be
required to pay prevailing wage rates as established by
the State of
2. OLD TOWNE RETAIL LOAN PROGRAM
The Old Towne Retail Loan Program is applicable to a Qualified Small Business that is
either (a) a new business or an existing business looking to expand or relocate within the Old
Towne Historic District looking to bring interior improvements into compliance with the
Uniform Building Code, Uniform Mechanical Code, Uniform Plumbing Code, Uniform Code
for the Abatement of Dangerous Buildings, National Electrical Code, California Fire Code,
Building Security Standards and/or Seismic Strengthening Provisions for Un-
reinforced Masonry Bearing Wall Buildings, as set forth in Chapters 15.04, 15.08, 15.12, 15.16, 15.
20,15.24, 15.32, 15.52 and 15.55, respectively, of the Orange Municipal Code (herein
referred to as Building Code Improvement), and/or the Americans with Disabilities Act (
ADA)standards, or (b) an existing business within the Old Towne Historic District not looking
to expand but, instead, looking to bring interior improvements into compliance with
the Building Code Improvements and/or ADA standards. This program is designed to
encourage a Qualified Small Business to upgrade interior improvements in compliance with
current Building Code Improvements and/or the ADA standards. A Qualified Small Business
under this program encompasses a broad range of retailers including restaurants, food
service establishments, and antique and specialty shops. Applicants who are participating in
the Mills Act Program do not qualifY for the Old Towne Retail Loan Program. Old
Towne Retail Loan Program criteria are as
follows:o Minimum loans of $5,000 up to maximum of $100,
000;o Loans will be structured over a five (5) to ten (10) year period and require
annual payments of principal and interest. Terms and amount of assistance may be
modified in certain circumstances to reflect the lease
terms;o Loans will bear an interest rate of three percent (3 %) simple interest
annually;o 50% of the loan amount will be forgiven by the Agency to provide an incentive
to stay in operation depending upon the Agency's analysis of
need;o All contractors performing the work shall be required to pay prevailing wage rates
as established by the State of California Department ofIndustrial Relations;
and o All outstanding debt will be immediately due and payable upon closure, sale of
the business to a third party, or
default.3. SIGNAGE INCENTIVE
PROGRAM The Signage Incentive Program is a 60/40 matching loan program in which the Agency
will contribute 60% in funding participation towards new signs in the Merged
Redevelopment Project Area. The program provides for property owners and/or tenants seeking
financial assistance to remove existing signs and upgrade and/or construct new signs that will meet
the City of Orange building and zoning code requirements. Signage Incentive Program
criteria are as
follows:o 60/40 Matching Program. At time of application submittal, a Qualified
Small Business must provide proof of documentation that it's 40% contribution in
matching funds is available for the
project;o Minimum Agency participation is $2,500; maximum Agency participation shall
not exceed $30,
000;Page 2 of
o Qualified use of funds may include: removal and disposal of original sign; new sign
design concept; sign fabrication, installation related work including foundations and
electrical work; permits and building fees;
o City and Agency must approve all sign designs and plans;
o Loan shall be interest free;
o All contractors performing the work shall be required to pay prevailing wage rates as
established by the State of California Department ofIndustrial Relations; and
o Assistance in the form of an unsecured loan shall be forgiven upon satisfying certain
agreed-upon performance conditions over a five-year term or other
negotiated term.4. LANDSCAPE ENHANCEMENT
INCENTIVE PROGRAM The Landscape Enhancement Incentive Program is created to provide property
owners and tenants with financial assistance to enhance their properties through
landscape treatments.Under this program, property owners can pursue much needed aesthetic
improvements to their property thereby creating an environment more attractive, inviting and
conducive for business activity. General program criteria are
as follows:o 60/40 Matching Program. At time of application submittal, Qualified
Small Business must provide proof of documentation that it's 40% contribution in matching
funds is available for
the project;o Minimum Agency participation is $5,000; Maximum Agency participation
shall not exceed $
60,000;o Qualified use of funds may include: landscaping design and plans,
construction of landscape improvements including demolition, planting, trees, shrubs,
hardscape and masonry work, fencing and
irrigation system;o City and Agency must approve all final
landscape plans;o Loan shall be
interest free;o All contractors performing the work shall be required to pay prevailing wage
rates as established by the State of California Department ofIndustrial
Relations; and o Assistance in the form of an unsecured loan shall be forgiven upon
satisfying certain agreed-upon performance conditions over a five-year term
or other negotiated term.5.
RESTAURANT EQUIPMENT INCENTIVE PROGRAM The Restaurant Equipment Incentive Program provides for a loan of up to $
30,000 to install and/or upgrade grease interceptors, grease traps or alternate methods
as determined by the City's Public Works Director. A Qualified Small Business shall be
required to maintain and clean the grease interceptors and/or grease traps for the life of
the business operation. The frequency of maintenance shall not be less than every six (6)
months. Based on actual generation of fats, oils and grease from the establishment,
the maintenance frequency may increase or decrease as determined by the Agency and/or the
City'
s Public Works Department.A Qualified Small Business shall include but not be limited to any
facility preparing and/or serving food for commercial use or sale. This includes
restaurants; cafes; hotels; catering kitchens; bakeries; grocery stores with food preparation, food
packaging, meat cutting, and meat preparations; and other food handling facilities not listed above
where fats, oil and
grease may be introduced into the community sewer system and cause line blockages and
sewer overflows. General program criteria are as follows:
o Minimum loans of$2,500 up to a maximum of$30,000;
o Loan shall be interest free;
o Assistance in the form of an unsecured loan shall be entirely forgiven upon satisfying
performance conditions over a five-year term or other negotiated
term;o All contractors performing the work shall be required to pay prevailing wage rates
as established by the State of California Department ofIndustrial
Relations;o Qualified Small Business shall be required to maintain restaurant grease
equipment and remain open for business during the term of the loan;
an o Agency funds may be used for all costs associated with the installation of
grease interceptors and/or grease traps including but not limited to design and
engineering costs, equipment costs, permits and fees. Funds may not be used for
on-goingmaintenance and/or
cleanup costs.6. FEE
INCENTIVE PROGRAM Recognizing the establishment, expansion, relocation of a small business
comes with substantial start-up costs, the Fee Incentive Program was created to
allow qualified small businesses to seek Agency assistance to offset costs associated
development fees including but not limited to planning, parking, Fire Facility, Police
Facility, Transportation System Improvement Program (TSIP), building, business license and utility fees.
The Fee Incentive Program provides financial assistance to shift dollars that would normally go
to pay for development fees and refocus those dollars into marketing and outreach
of the newly established business. Fee Incentive Program criteria
are as follows:o Minimum Agency participation of$2,500 up to a maximum
of$15,000;o Assistance in the form of an unsecured loan shall be
forgiven upon satisfYing performance conditions over a five-year term
or other negotiated term;o Qualified Small Business shall not exceed 100 full
and/or part-time employees;o New businesses must commit to marketing and outreach
efforts equal to 20-50% of the amount of requested
Agency assistance under this Program; and o Existing business intending to expand or relocate
into the City must commit to marketing outreach or
other performance-based conditions to be negotiated.Examples of performance-based conditions
may include: creation of new full and part time jobs, increase
sales tax generation, and