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HomeMy WebLinkAboutMINUTES - 09142004 - C136 TO: t REDEVELOPMENT AGENCY Contra .: FROM: JOHN SWEETEN Costa EXECUTIVE DIRECTOR DATE: September 14, 2004 County SUBJECT: Rodeo Commercial Fagade Rehabilitation Program SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE and AUTHORIZE the Redevelopment Director to authorize disbursement of Commercial Facade Improvement Loan funds directly to borrowers and to service said loans through the establishment of a Payment Processing Account with Mechanics Bank. FINANCIAL IMPACT: NONE. No General Fund revenues are involved. Redevelopment and County CDBG funds have been approved and budgeted for the Commercial Facade Improvement Program CONTINUED ON ATTACHMENT: ❑ YES SIGNATURE: d j ECOMMENDATION OF EXECUTIVE DIRECTOR ❑ RECOM ND TION OF JENCY COMM EE �PPROVE ❑OTHER f SIGNATURE(S): ACTION OF AGNo ON APPROVED AS RECOMMENDED ❑ OTHER ❑ VOTE OF SUPERVISORS: 1 HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND UNANIMOUS{ABSENT /'2 ) ENTERED ON THE MINUTES OF THE AYES: NOES: REDEVELOPMENT AGENCY ON THE DATE SHOWN. ABSENT: ABSTAIN: `? ATTESTED Contact: JOHN SWaTEN,AGENCY SECRET Y cc: CAC) County Counsel Redevelopment Agency By '� �"- / "' eputy C. Q� BACKGROUND: In 1997, the Board authorized the creation of the Commercial Facade Improvement Program in the Rodeo community. The program was created to address the significant number of commercial properties in need of improvement. The program provides both loans and rebates to property owners to assist in financing facade improvements. The Agency also has a designer on retainer to provide participants with assistance in designing improvements that are consistent with the Rodeo Downtown/Waterfront Specific Plan Design Guidelines. The existing authorization for the program identifies a Loan Servicing Agreement with Mechanics Bank to disperse funds, service the account, and provide for an accounting of each loan made. However, Mechanic's Bank is no longer able to provide that service to the Agency given the 'amount of the loans the Agency provides (maximum $15,000). The Agency is proposing a minor program change to be able to continue to provide this service to Rodeo businesses. The changes include: v Distributing the funds directly to program participants from the Redevelopment Agency o Using Mechanics Bank Payment Processing Account as a mechanism to service the loan instead of the Loan Servicing Agreement. The proposed changes will save Agency funds that are currently paid to Mechanics Bank for loan servicing and provide a more straightforward process for program participants.