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HomeMy WebLinkAboutAG RPTS 1997 0507 RDA REG IT1D ) Resolution No. 97-53 * MARCH A MMY cgjF_O j PQ MOORPARK REDEVELOPMENT AGENCY "e OQ`� REGULAR MEETING AGENDA Orr OF M`0 WEDNE SDAY, MAY 7, 1997 7:00 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PRESENTATIONS/ACTION/DISCUSSION: A. Consider Adoption of Resolution No. 97- Approving Request for Redevelopment Agency Business Loan for Red River Steak & Fish. Staff Recommendation: The Economic Development Committee and staff recommend that the Moorpark Redevelopment Agency adoption of Resolution No. 97- approving the loan request for Red River Steak and Fish in an amount not to exceed $25, 000. (ROLL CALL VOTE REQUIRED) B. Consider Approval of the Moorpark Redevelopment Agency (Agency) Business Loan Program and Loan Requirements. Staff Recommendation: The Economic Development Committee and staff recommend that the Moorpark Redevelopment Agency approve the Business Loan Program as contained in the staff report with the Executive Director to approve loan applications. 5. CONSENT CALENDAR: (ROLL CALL VOTE REQUIRED) A. Consider Approval of Minutes of a Special Meeting of the Redevelopment Agency of March 19, 1997 . Consider Approval of Minutes of a Regular Meeting of the Redevelopment Agency of March 19, 1997 . Consider Approval of Minutes of a Regular Meeting of the Redevelopment Agency of April 2, 1997 . Staff Recommendation: Approve the minutes as processed. B. Consider Reallocation of Appropriations. Staff Recommendation: Rescind Resolution No. 96-47 and adopt two new resolutions: one to authorize $2,700 to be allocated to Fund 410; and the other to authorize that $50, 000 be allocated to Fund 232 . 1 Moorpark Redevelopment Agency May 7 , 1997 Page 2 6. ADJOURNMENT: Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or Presentations/Action/Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations/ Action/ Discussion item must do so during the Public Hearing or Presentations/ Action/Discussion portion of the Agenda for that item. Speaker cards must be received by the Secretary for Public Comment prior to the beginning of the Public Comments portion of the meeting and for Presentations/Action/Discussion items prior to the beginning of the first item of the Presentations/Action/Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentations/ Action/Discussion item speaker. Copies of each item of business on the agenda are on file in the office of the Secretary and are available for public review. Any questions concerning any agenda item may be directed to the Secretary/529-6864. STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss CITY OF MOORPARK ) AFFIDAVIT OF POSTING I. Dorothy J. Vandaveer, declare as follows: That I am the Deputy City Clerk of the City of Moorpark and that an agenda of the Regular Meeting of the Moorpark Redevelopment Agency to be held May 7, 1997 at 7:00 p.m. in the Council Chambers of the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California, was posted on May 2, 1997 at a conspicuous location near the place of the meeting: Moorpark Community Center 799 Moorpark Avenue Moorpark, California I declare under penalty of perjury that the foregoing is true and correct. Executed on July 23, 1997. Dorothy J. a aveer, Deputy City Clerk i,, .I- � ITEM.�,A !PARK AUA T AGENCY AGES REMKIRT TO: Chairmen and Hoard Members of the Moorpark Redevelopment Agency FROM: Steven Hayes, Economic Development/Redevelopment Manager DATE: April 10, 1997 (Mtg. 05/07/97) SL#BJBCT: Cotasider Adoption of Resolution No. 97--�_53Approving Request for Redev Imposi t Agency BUSineas Loan for Red River Steak & Fish On February 24, 1997, the Agency received a request for a Redevelopment Agency Business Loan from bark Bailey, Owner of Red River Steak & Fish Restaurant. The Loan amount requested is $25,000. The Loan will be for building improvements and purchase of equipment. Shortly after receiving the loan request, staff met with Mr. Bailey in order to obtain additional information regarding his financing, structure of his business, ownership and other information pertaining to his request. On March 11, 1997, the Economic Development Committee (Bernardo Perez, Mayor Pro Ten and Debbie Rodgers Teasley, Couneilaember) reviewed Mr. Baileys' request for a business loan. Mr. Bailey was requested to provide additional information regarding improvements to be made and their associated casts and that the application be presented to the Agency upon completion. On April 1, 1997, staff received additional information contained in a letter dated, March 27, 1997. After staff review, it was determined that the additional information should be reviewed by the Committee. On April 8, 1997, the Committee reviewed Mr. Bailey's submittal and requested that the Agency consider approval of the application. Attached are the Annotated Meeting Agendas for March 11, 1997 and April 8, 1997. 1 The regular city council meeting of May 5, 1997 was mis- scanned. The following pages contain the regular redevelopment agency meeting for May 5, 1997. The regular CC meeting can be found at MTG- 1997 - 0507 -RDA The documentation accompanying the written request is held in the Agency's files and contains: 1. Lease Agreement for property located at 233 East High Street. 2. Insurance Binder in the amount of $1,000,000. 3. Operating Agreement for Red River, a Limited Liability Company (LLC). This shows the names of investors and percent invested by individual investors. 4. U.S. Individual Income Tax Return 1040 for 1993, 1994 and 1995. 5. Business Plan. 6. U.S. Small Business Administration Note. The financial data indicates that Red River has an initial capitalization of $300,000 to remodel the building, phase the equipment, and provide working capital for the beginning of the business. Mark Bailey has contributed cash as the Operating Principal. There are four investors that have executed an Operating Agreement as a Limited Liability Company. The loan would be secured by the offering of Walt Disney Stocks owed by Charlene S. Bailey (value of $9,775.00), a Maxima GXE Sedan 4D with a Kelley Blue Book value between $9,800 and $13,750 and a home owned by Mr. and Mrs Bailey with available equity of $11,582.00. Total equity ranges from $31,157 to $35,107. Mr. Bailey started the work on the restaurant and expressed interest in the loan program before the drafting of the Redevelopment Agency Business Loan Regulations. Due to this, the loan application does not fully meet the requirements as presently recommended by the Economic Development Committee and staff. Because his application was shitted after the initial approval of the program and has been pending, staff recommends that it be approved but that such action not be considered precedent setting. All subsequent applications would have to comply with the Redevelopment Agency Business Loan Regulations as adopted by,,the Agency. 2 . 1 The loan will be used to pay for existing and new improvement for the facility as follows: TOTAL COST: $25,700.00 * These items have been completed. The items that have not been completed cost approximately $8,000.00. 3 1 N ITEM COSTS 1. Finish building interior walls and office: $ 2,000.00* 2. Close in upstairs kitchen, doors and hardware: 1,500.00* 3. Purchase ice cream dipping cabinet: 1,200.00* 4. Finish Kitchen tile and move wall: 1,000.00* 5. Purchase single door cooler: 800.00* 6. Purchase additional chairs and tables: 5,000.00 7. Commercial hot water heater: 1,200.00* 8. Tile floor for hallway: 1,000.00 9. Build additional cabinets for storage: 2,000.00* 10. Outside lights for outside sign: 500.00 11. AC ducts for bathrooms: 2,000.00* 12. Install water spigots: 500.00 13. Purchase and install bathroom stall: 2,000.00 14. Build roof screen 5,000.00 TOTAL COST: $25,700.00 * These items have been completed. The items that have not been completed cost approximately $8,000.00. 3 1 N Based upon prior Agency action which Program, staff reserved $250,000 in Tax program. Should the Agency approve reserve would be reduced by the amount $25,000). approved the Business Loan Increment Revenues for said this loan application, the of the loan (not to exceed The Economic Development Committee and staff recommend that the Moorpark Redevelopment Agency adopt Resolution No. 97 -B approving the loan request for Red River Steak and Fish in an amount not to exceed $25,000. C: \% \GRAl14 \9=.004- 03/07/97 -Apri1 30, 1997 F1 11 0 0000G RESOLUTION NUMBER 97- RESOLUTION OF TNX R T AGENCY APP'RO+VrIM A I I I MAP —1 r AMOCX DVSINBSS LOAN FOR IMOD RIVER MU AND FISH IN THE AMOUNT NOT TO EXCEED $25,000. WAARFAS, on NaVmber 6, 1996, the Moorpark Redevelopment Agency approved funding in the amount of $250,000 for the Redevelopment Business Loan Program; and WHIZUKAS, an application has bow filed with the Mocorpad[ Rede"lt ,,mercy by Red River Steak and Fish for rehabilitation of the building and equipment; and MUMRAS, Exhibit "A" hereof describes said allocation. NOM, TNBREFORE, THE CITY OF MOORPARKi AGENCY DOES RESOLVE AS FOLLOWS: Funding in an amount not to exceed $25,000 described in Exhibit "A" attached hereto is hereby approved. PASSED, APPROVED AND ADOPTED this 7th day of May, 1997. Lillian E. Hare Agency Secretary C7 \M \R' 0 \28DO- A.009- 10 /18/94-April 30, 1"? Patrick Hunter Jr. Chairman REDEVELOPMENT AGENCY BUSINESS LOAN RED RIVER RESTAURANT 1 CURRENT APPRAISAL OF RESIDENCE $221,000.00 2 CURRENT BALANCE OF MORTGAGE 3 EQUITY IN RESIDENCE 4 SBA LOAN AMOUNT 5 SECOND SECURED BY RESTAURANT EQUIPMENT AND FIXTURES (SBA LOAN) 6 SECOND SECURED BY EQUITY IN RESIDENCE (SBA LOAN) $198,000.00 ------------ $23,000.00 $74,317.87 $62,900.00 $11,417.87 7 EQUITY AVAILABLE FOR RDA LOAN IN RESIDENCE $11,582.13 m w ► Qt r ' :4 • OR d.ti. ^a MAYOR PRO T= BXRMARDO PRRBZ Am CODNCILNBWBR DBBBIN RODGXRS TFASLEY Tue®day, April 8, 1997 6:15 P.M. �ir w go= 729 1gIIgWNM AY MM 1. CALL TO ORDER: 6:20 P.M. 2. ROLL CALL: Bernardo Perez, Mayor Pro Ten; Debbie Rodgers Teasley, Councilmember; Steven Rueny, City Manager; Richard Hare, Deputy City Manager; Steven Hayes, Economic Development and Redevelopment Manager. Also in attendance: Mark Bailey and Eloise Brown. 3. DISCUSSION ITEMS: (These items were taken in reverse order) A. Discuui.o1 with l�aoroark Chamber of Commerce about Economic Deyelo5ent Activities ammittee Action: Since a representative from the Chamber of Commerce was not present, the City Manager briefed the Committee on two Chamber issues. The Chamber has installed their directional signs on Moorpark Avenue and Los Angeles Avenue. The Chamber is planning their annual circus, to be held on May 26 and 27, 1997. A report on the circus will be presented at the next Council Meeting which is scheduled for April 16, 1997. Committee Action: Staff outlined the present procedures for responding to project leads issued by the CTCA. The CTCA gives cities only one or two days to generate detailed responses for individual projects. Responding to requested information requires staff to 'set aside temporarily all other priorities and assignments. In pone cases 1 C. D. where property zoned property is not available for the proposed use, staff is asked to suggest or respond to the inquiry with other sites that could be re- zoned. It was the Committee's consensus that staff has sufficient knowledge of the City to use discretion regarding appropriate responses to these requests. It was further agreed that in general, responses should be limited to those leads where the sites and proposed use are con atible with zoning and general plan designation. The Committee agreed that this item should be presented to the City Council direction to staff. omm.ie Action: The Committee reviewed the draft program procedures and made minor modifications. It was the Consensus of the Committee that this item be presented to the Agency for Consideration. Committee Action: Staff presented additional information received from Mark Bailey regarding his request for a loan for the Red River Restaurant. It was the consensus of the Committee that the Agency consider approval of the loan request. 4. ADJOURNMENT: 7:10 P.M. C: \M \•DAEC \8=32!]►- 04/02/97 -April 10, 1997 2 .1 ANNOTATED HIMING AGE MAYOR PRO TVK 81NNfARDO PEREE AND COU!ACILN ZR DEBNIE RODGERS TEA.SLEY Tuesday, March 11, 1997 6:15 P.M. 1. CALL TO ORDER: 6:30 P.M. 2. ROLL CALL: Bernardo Perez, Mayor Pro Tea; Debbie Rodgers Teasley, Councilmember; Steven Kueny, City Manager; Richard Hare, Deputy City Manager; Steven Hayes, Economic Development and Redevelopment Manager. Also in attendance: Moorpark Chamber of Commerce Members Linda Plaks and James Stueck; Mark Alyn, Gen Rowland and Mark Bailey. 3. DISCUSSION ITEMS: Ia- • . 1 K STAFF RBCOImIEn ION: Direct staff as deemed appropriate. Committee Action: Linda Plaks, Chamber President, stated that the Chamber's Economic Development Committee has an interest in the new service station, mini mart and car wash development that is proposed for the southwest corner of Liberty Bell Road and the cube and tune -up business proposed for the northeast corner of Goldman Avenue and Los Angeles Avenue. The other on going project is the placement of the directional signs for the Chamber. Mrs. Plaks stated that the new Business Directory will be available within a few days. 1 � s STAFF RECKOO1 M ION: Direct staff as deemed appropriate. Committee Action: Bernardo Perez introduced Mark Alyn, President of Mark Alyn Communication, Inc., video and Film Productions. Mr. Alyn presented an overview of his proposal to produce three videos for: (1) High Street, emphasizing "it's historic nature ", (2) on redevelopment accomplishments, and (3) the City in general. The Committee expressed a desire to accomplish the filming of certain location shots now to take advantage of spring conditions so Mark Alyn Communications, Inc., can complete the project by late 1997. Staff was asked to prepare a report to the City Council requesting funds for the filming of footage related to this project. The video production and editing including additional footage should be completed with the budget for FY 1997/1998. D. STAFF RNCOMMEM MTION: Direct staff as deemed appropriate. Committee Action: Steve Hayes gave an overview of the guidelines for the Redevelopment Agency Business Loan Program. After discussion on recommendations for modifications to various sections, the Committee recommended that the guidelines be presented to the Agency for consideration of approval. STAFF RNCOININaDATION: Direct staff as deemed appropriate. Committee Action: Mr. Mark Bailey's application was discussed by the Committee. The Committee requested that Mr. Bailey present staff with information as to how the loan will be secured. ' Mr. Bailey was also requested to provide additio>xal information specifically on improvements made and their costs. The application is to be presented to the Agency upon completion. E. Cons, er Costs for a u na t Siam for Tinny Fox Located at the Southwest Corner of High Street, Los Angeles Avenue and Spring Road STAFF RR ION: Direct staff as deemed appropriate. Cosittee Action: At the request of Bernardo Perez, this item was tabled. 4. AWODRMUNT: 8:15 P.M. C:\ M\$AAHC \9ORl3270- 03/12/97 -april 10, 1997 3 i f TO: FRAM: DATE: Si%B WT � D il r r -41 1_! -! Chairman and Hoard Members of the Moorpark Redevelopment Agency Steven Hayes, Economic Devel opamnt /Redeve opmert Manager April 27, 1997 (Mtg. 05/07/97) Consider dal of the Moorpark FAmb velop•ent Agcy (may) Business Loan Program and Loan Requirements On October 16, 1996, the Economic Development /Affordable Housing Com•ittee (Councilmsmbers Bernardo Perez and Eloise Brown) recommended that $250,000 be set aside for business incentives with the following conditions: 1. That there be no grants. 2. That this program be for new businesses in the Redevelopment Project Area. 3. That the maximum amount and terms be approved on a case - by -case basis. 4. That new incentive programs be considered after the Downtown Study is completed. On November 6, 1996, the Agency appropriated $250,000 for a Business Attraction Loan Program. The Agency approved the appropriation subject to the same conditions except for condition No. 2 above. The word "new" was removed from the recommendation, thus allowing existing businesses to participate. On March 11, 1997, the Economic Development Committee (Mayor Pro Tea Bernardo Perez and Councilaember Deride Rodgers Teasley) reviewed a draft of the program guidelines. After recommending some modifications and the establishment of a Loan Program Brea, the Committee recommended that the Redevelopment Agency Business Loan Program be presented to the Agency for consideration. , On April 8, 1997, the Economic Development Committee reviewed the final draft to the of the loan requirements and after minor modifications recommended that this item be presented to the Agency for consideration. Attached is the Economic Development Committee's annotated special meeting agenda dated October 16, 1996, the agenda and minutes of the Agency's meeting of November 6, 1996, the Economic Development Committee annotated meeting agenda of March 11, 1997, and the Economic Development Committee annotated meeting agenda of April 8, 1997. The attached Redevelopment Agency Business Loan Program requirements have been developed in order to more efficiently promote and administer this program and to establish parameters for applicants. The Redevelopment Agency Business Loan Program contains seven sections as follows: Section I. This Section defines the Goals and objectives of this program which is to help retain the existing businesses and attract new businesses to High Street. Section II. Loan Program Area This Section limits this program to an area as follows: Moorpark Avenue from Everett Street south to Third Street; High Street; Walnut, Bard and Magnolia Streets from High Street to Charles Street. Section III. Eligible Proiects This Section provides examples of the types of projects that will be considered for funding. The listing includes interior and exterior construction elements. Section IV. Businesses Eligible For Fund'ng Businesses eligible for funding include new and existing businesses in the Loan Program Area. Also established in this Section is a listing of preferred businesses. 2 1' Section V. Terms Of The Loan The basic terms of the loan are: 3% interest for ten years, loan amount and how the loan is to be secured. This Section establishes procedures for the application process, for the administration of the loan and escrow. Section VII. Loan Documents This Section establishes what documentation will be required to be submitted by the applicant and what documents need to be filed with the Agency and escrow. Staff is suggesting that the Executive Director be authorized to approve the application for the loans. Staff will prepare reports for the Agency regarding the applications received and approved. Staff shall also be allowed to modify the forms as needed in order to implement the program. As stated above, the Moorpark Redevelopment Agency appropriated $250,000 from Tax Increment Revenues (Account No. 410.504.0000.510.5216) for this program. The Economic Development Comamittee and staff recomawtd that the ftorpark Redevelopment Agency approve the Business Loan Program as contained in this report with the Executive Director to approve loan applications. C: \M \GRANT \SG8.009 - 04/08/97 -Apri1 30, 1997 3 ��� 1. CALL TO ORDER: MAYOR PRO TEN BRONARDO PEREZ AND COUNCILHOWER DEBBIE RODGMRS TEASLEY Tuesday, April 8, 1997 6:15 P.M. 6:20 P.M. 2. ROLL CALL: Bernardo Perez, Mayor Pro Tem; Debbie Rodgers Teasley, Councilmember; Steven Kueny, City Manager; Richard Hare, Deputy City Manager; Steven Hayes, Economic Development and Redevelopment Manager. Also in attendance: Mark Bailey and Eloise Brown. 3. DISCUSSION ITEMS: (These items were taken in reverse order) A. with Mo rpark Chamber of Commerce about Economic Develonment Activities Committee Action: Since a representative from the Chamber of Commerce was not present, the City Manager briefed the committee on two Chamber matters. The Chamber has installed their directional signs on Moorpark Avenue and Los Angeles Avenue. The Chamber is planning their annual circus, to be held on May 26 and 27, 1997. A report on the circus will be presented at the next Council meeting which is scheduled for April 16, 1997. Coimittee Action: Staff outlined the present procedures for responding to project leads issued by the CTCA. The CTCA gives cities only one or two days to generate detailed responses for individual projects. Responding to requested information requires staff to set aside temporarily all other priorities and assignments. In some cases 1 � IV where property zoned property is not available for the proposed use, staff is asked to suggest or respond to the inquiry with other sites that could be re- zoned. It was the Committee's consensus that staff has sufficient knowledge of the City to use discretion regarding appropriate responses to these requests. It was further agreed that in general, responses should be limited to those leads where the sites and proposed use are compatible with zoning and general plan designation. The Committee agreed that this item should be presented to the City Council for direction to staff. gMaittee &=ion: The Committee reviewed the draft program procedures and made minor modifications. It was the Consensus of the Committee that this item be presented to the Agency for consideration. ComSittee Action: Staff presented additional information received from Mark Bailey regarding his request for a loan for the Red River Restaurant. It was the consensus of the Committee that the Agency consider approval of the loan request upon receipt of additional information concerning the security to be provided. 4. ADJOURNMENT: 7:10 P.M. Cs \K \MX%NC \90832BA- 04/02/97 —April 10, 1997 E ffl ' tl ECON0141IC DEVELOPMENT COMMITTEE ANNOTATED MEETING AGENDA MAYOR PRO TEM BERNARDO PEREZ AND COUNCILKBMBER DEBBIE RODGERS TEASLEY Tuesday, March 11, 1997 6:15 P.M. 1. CALL TO ORDER: 6:30 P.M. 2. ROLL CALL: Bernardo Perez, Mayor Pro Tem; Debbie Rodgers Teasley, Councilmember; Steven Kueny, City Manager; Richard Hare, Deputy* City Manager; Steven Hayes, Economic Development and Redevelopment Manager. Also in attendance: Moorpark Chamber of Commerce Members Linda Plaks and James Stueck; Mark Alyn, Gen Rowland and Mark Bailey. 3. DISCUSSION ITEMS: STAFF ION: Direct staff as deemed appropriate. Committee Action: Linda Plaks, Chamber President, stated that the Chamber's Economic Development Committee has an interest in the new service station, mini mart and car wash development that is proposed for the southwest corner of Liberty Bell Road and the lube and tune -up business proposed for the northeast corner of Goldman Avenue and Los Angeles Avenue. The other on going project is the placement of the directional signs for the Chamber. Mrs. Plaks stated that the new Business Directory will be available within a few days. I' 1 ��� B. Consider Mark Alyn Communications, Inc. Video Proposal STAFF TION: Direct staff as deemed appropriate. Committee Action: Bernardo Perez introduced Mark Alyn, President of Mark Alyn Communication, Inc., Video and Film Productions. Mr. Alyn presented an overview of his proposal to produce three videos for: (1) High Street, emphasizing "it's historic nature ", (2) on redevelopment accomplishments, and (3) the City in general. The Committee expressed a desire to accomplish the filming of certain location shots now to take advantage of spring conditions so Mark Alyn Communications, Inc., can complete the project by late 1997. Staff was asked to prepare a report to the City Council requesting funds for the filming of footage related to this project. The video production and editing including additional footage should be completed with the budget for FY 1997/1998. STAFF R1CK.'O!M®IQi1TION: Direct staff as deemed appropriate. Committee Action: Steve Hayes gave an overview of the guidelines for the Redevelopment Agency Business Loan Program. After discussion on recommendations for modifications to various sections, the Committee recommended that the guidelines be presented to the Agency for consideration of approval. STAFF RNCO!!®NOATION: Direct staff as deemed appropriate. Committee Action: Mr. Mark Bailey's application was discussed by the Committee. The Committee requested that Mr. Bailey present staff with information as to how the loan will be secured. Mr. Bailey was also requested to provides additional information specifically on improvemetits made and their costs. The application is to be 2 Uoeq,?i presented to the Agency upon completion. E. Consider Costs for a Monument Sign for Tipsy Fox Located at the Southwest Corner of High 'Street . Los Angeles Avenue and Staring Road STAFF RBCONMENDATION: Direct staff as deemed appropriate. Com ittee Action: At the request of Bernardo Perez, this item was tabled. 4. AWOURN UM : 8:15 P. M. CS \M \6DAHC \8GE3275- 03112197 -Apri1 3, 1997 0 3 t 4 • Minutes of the Redevelopment Agency Moorpark, California Page 2 November 6, 1996 MOTION: Agency Member Brown moved and Agency Member Wozniak seconded a motion to adopt Resolution No. 96 -46 approving a budget amendment for the Moorpark Redevelopment Agency Area 1 Capital Project Fund (Fund 410) in the amount of $3,000.00. The motion carried by unanimous roll call vote. B. Review and Consider Existing and New Housing Programs. Staff Recommendation: The Economic Development /Affordable Housing Committee and staff recommend that the Agency approve the following: 1) That the cost of escrow fees for the individual project be borne by the borrower and added to the loan for the housing rehabilitation project; 2) That the Agency authorize staff to proceed with the development of 203(k) programs with a revolving fund amount of $50,000 from 20% tax increment set aside funds for individual loans not to exceed $7,000 interest free for this program, that the Agency adopt Resolution-No. 96 -47 appropriating the funds, and that the Executive Director be authorized to execute all documents necessary for this program; 3) That an additional $2,700 be allocated from 20% tax increment set aside funds to Account #232.504.5005.000.9402 for repairs on 661 Moorpark Avenue and that the Agency adopt Resolution No. 96 -47 appropriating the funds. (ROLL CALL VOTE REQUIRED) Mr. Hayes gave the staff report. MOTION: Chairman Lawrason moved and Agency Member Brown seconded a motion that the cost of escrow fees for the individual project be borne by the borrower and added to the loan for the Housing Rehabilitation Project; that the Agency authorize staff to proceed with the Development of a 203(k) Program for the revolving fund amount of $50,000 from 20% tax increment set aside funds for individual loans not to exceed $7,000 interest free for this program, that the Agency adopt Resolution No. 96 -47 appropriating the funds, and that the Executive Director be authorized to execute all documents necessary for this program; that an additional $2,700 be allocated from 20% tax increment set aside funds to account #232.504.5005.000.9402 for repairs on 661 Moorpark Avenue and that the Agency appropriate the funds. The motion carried by unanimous roll call vote. C. Consider Resolution No. 96 -48 Appropriating. Funds for the Use of Tax Increment Revenues for Business Incentives. Staff Recommendation: The Economic Development /Affordable Housing Committee arid' staff Minutes of the Redevelopment Agency Moorpark, California Page 3 November 6, 1996 recommend that the 14RA adopt Resolution No. 96 -48 appropriating funds -'n the amount of $250,000 from private sector bond proceeds for business incentives with the following conditions: 1) That there be no grants, 2) That this program be for businesses in the Redevelopment Project Area, 3) That maximum amount and terms be approved on a case -by -case basis, and 4) That new incentive programs be considered after the downtown study is completed. (ROLL CALL VOTE REQUIRED) Mr. Hayes gave the staff report. MOTION: Agency Member Brown moved and Agency Member Wozniak seconded a motion to adopt Resolution No. 96 -48 appropriating funds in the amount of $250,000 from private sector bond proceeds for business incentives with the following conditions: 1) That there be no grants, 2) That this program be for properties and existing businesses in the Redevelopment Project Area, 3) That maximum amount and terms be approved on a case -by -case basis, and 4) That new incentive programs be considered after the downtown study is completed. The motion carried by unanimous roll call vote. D. Consider Monument Sign for High Street. The Economic Development Committee and staff recommend that the Moorpark Redevelopment Agency adopt Resolution No. 96- approving a budget amendment for the Moorpark Redevelopment Agency Area 1 Capital Project Fund (Fund 410) in the amount of $30,000, and authorized staff to proceed with the placement of the sign as noted in the staff report. (ROLL CALL VOTE REQUIRED) Mr. Hayes gave the staff report. Agency Member Wozniak expressed concern regarding the location and cost of the sign. MOTION: Agency Member Brown moved and Agency Member Wozniak seconded a motion to continue this item and refer it back to the Economic Development /Affordable Housing Committee. The motion carried by unanimous voice vote. CONSENSUS: By consensus the Council determined to look at other sites such as across the street on the northwest corner of High Street and Spring Road and to also consider putting an identical sign at the opposite end of High Street. E. Consider Directional Sign for High Street. Staff Recommendation: The Economic Development /Affo +dable MC?C3RPARK RLDEVELOFP`MMWrr AGENCY BUS 2 N S S LOAN PROGRAM MAY 1 9 917 m 1 TABLE OF CONTENTS Section I. Goals and Objectives ............................ 1 Section II. Loan Program Area 1 Section III. Eligible Projects ............................... 2 Section IV. Businesses eligible for funding ................. 3 Section V. Terms of the Loan ............................... 3 Section VI. Application Procedures .......................... 4 Section VII. Loan Documents ... ............................... 6 EXHIBITS Exhibit "A" Flow Chart Page 8 Exhibit "B" Business Loan Application Page 10 Exhibit "C" Owner Indemnification and Release Form Page 14 (i) � MOORPARK REDEVELOPMENT AGENCY BUSINESS LOAN PROGRAM SECTION I GOALS AND OBJECTIVES The Redevelopment Agency of the City of Moorpark has declared a need to assist with economic growth in the Moorpark Redevelopment Project Area. To accomplish this, the City and Agency will encourage the relocation and establishment of businesses, and efforts to assist existing businesses, in Moorpark's historic downtown. This encouragement will include a business loan program described herein for the Loan Program Area, which is located in the Redevelopment Project Area. Businesses will be considered for inclusion in this low - interest loan program on the basis of several factors. Enterprises deemed to complement existing businesses in the Loan Program Area will be considered, including those that will contribute to a desired mix of economic activity in the Loan Program Area and as well as the City generally. The overall goal is to create a more attractive and accessible downtown area, to encourage a higher level of foot traffic, to develop a more vibrant business climate and to encourage economic spin off and synergy among existing and new businesses. By providing an attractive incentive to existing businesses to ruin in their present location or new businesses to locate here, this effort will expand the City's economic base, eliminate conditions leading to blight, increase the job market and improve the retail and service economy of the City. SECTION II LOAN PROGRAM AREA The loan program shall be limited to the area as follows: Moorpark Avenue from Everett Street south to Third Street; high Street, Walnut, Bard and Magnolia Streets from High Street to Charles Street. The buildings are to be consistent with the Downtown Plan and the building and use are to be consistent with Section 17 of the Municipal Code. The following Redevelopment Agency Business Loan Program requirements have been developed in order to more efficiently promote and administer this program and to establish parameters for applicants. d 1 SECTION III ELIGIBLE PROJECTS Both interior and exterior construction elements will be considered for this program. All items are to be consistent with the City's zoning regulations, building cones, and other applicable City, County, State and federal cosies and regulations. Any violation of the proceeding shall be corrected as part of this program. Failure to meet these standards may be cause for denial of the application. The following are examples of construction elements eligible for funding: 1. Reconstruction of parking lots. 2. Removal and replacement of signs. 3. Landscape treatment and irrigation systems. 4. Facade and exterior building renovation. 5. Decorative walls and fences. 6. Onsite sidewalks and curbing. 7. Roof mounted equipment screening. 8. External lighting. 9. Eaves and marquees. 10. Retrofit of unreinforced masonry construction. 11. Electrical, mechanical, heating /air conditioning and plumbing systems. 12. Tenant improvements. 13. Interior structural elements such as walls, ceilings and flooring. 14. Offsite improvements such as curbs, gutters and sidewalks. 15. Compliance with Americans with Disabilities Act (ADA) requirements. 16. Other similar improvements. 2 1 9000M SECTION IV BUSINESSES ELIGIBLE FOR FUNDING The following businesses are eligible for funding: 1. New businesses locating in the Loan Program Area. 2. Existing businesses in the Loan Program Area. 3. Preferred businesses to be: A. Retail sales. B. Point of origin for the purpose of generating sales tax. C. Businesses that increase employment. D. Businesses that increase business traffic in the Loan Program Area. E. Businesses having a potentially positive impact on retail businesses in the Loan Program Area. SECTION V TERMS OF THE LOAN The following are the terms and conditions of the program loans: 1. Interest at a simple uncompounded rate of three percent (3.0 %) per annum. 2. Ten (10) year amortization. 3. No penalty for early payoff. 4. Loan payment to start 90 days from the execution of the construction contract. 5. Monthly loan payments are due and are to be paid on the first day of each month. Any payment not received by the sixth .day of the month shall be considered late. A daily administrative fee will be charged on all delinquent accounts from the first 3 day of the month until payment is made. The administrative fee will be in the amount of ten percent (104) of the loan payment due, co daily and based on a 360 day year. (The amount due each day will be equal to the amount of loan payment(s) due, plus any previous fees accrued, multiplied by 103 divided by 360.) If after two months the default is not cured of all back payment owed, the Agency shall at its discretion, start foreclosure proceedings. 6. That the loan be secured by a lien against the property that is being rehabilitated, other real property, or insurable personal property, or liquid ads such as stocks and bands of equal value. A third position may be considered with a good credit rating and ate loam to value ratio. At least a 1.5 to 1 loan ratio shall be required. 7. The loan will be in the amount of up to $25,000. 8. The lean is to be no lass than eighty percent (80 %) of the cost of the project up to the maximum loan amount of $25,000. 9. With the application, the applicant shall deposit a non- refundable fee of $125.00 for staff processing time. 10. All escrow, title and recording fees or other fees charged by escrow will be part of the loan, or paid for by the applicant at the time the application is received by the Agency. The applicant shall me a deposit of $550.00 to Agency to cover these oasts. If the loan does not close, any unexpended amount will be returned to the applicant. No interest shall be paid on this deposit. The applicant shall prepay (out of pocket) the Agency for any special studies or for consultants used in the processing of the application as determined by the Agency at its sole discretion. 11. The payment of processing costs, a fee or deposit is no guarantee of approval. The Agency may deny or approve the application at its sole discretion. SECTION VI APPLICATION PROCEDURES 1. initial al mwetina ,Igith .�.�iii ®d 1i� i Upon contact by a prospective applicant, staff will amine if the applicant or business meets the above program requirements and if the desired use of the funds may qualify user this Program. A 4 . . � `Quo 'U copy of these Program requirements and a complete application package will be provided to the applicant. The application package will include the application form and list of support documents needed to process the application. 2. &Wjicatign sukatitted to AgNMy. At the time an application is submitted to the Agency, the applicant shall deposit a non- refundable fee of $125.00. Staff will review the application documents for completeness. Additional information or documentation will be requested at that time, if needed. 3. RgQUirAd aide, The applicant shall provide three bids from approved contractors for all work proposed to be performed. The lowest responsible bid subject to the program requirements and as determined by the Agency at its sole discretion will be accepted if the loan is approved. 4. Credit RaWrt, A credit report for the business and /or personal credit report of proprietor(s) will be obtained at applicant's cost. 5. Contractor Review. Staff will investigate Contractor's current status with State licensing board and review evidence of insurance coverage. 6. tilicatign ReviM by Staff . The application will be reviewed by staff for compliance with the Program requirements. Staff will inform the .Agency ors when an application is received and whether or not the application is approved. 7. Escrow, If the application is approved by the Agency, a construction escrow account will be opened. Staff will notify the Finance Department of the anticipated business loan project, so that Finance can assign an account number for tracking purposes. Staff will prepare a written request for the Finance Department for the transfer of the approved funds to escrow, identifying the assigned account number for the project. 8. Contractor Q=liance. Staff will obtain evidence of Contractor's naming Agency as additional insured for the approved work. Staff will also ensure that the Contractor has a current State License and City Business Registration. 9. Loan Docvmmts. Loan documents will be prepared, including promissory note and Deed of Trust. When executed, the Dead of Trust will be recorded, along with a Request for Notice. Thus, the Agency will be notified of any changes to prior liens on the property or if any change occurs in title to the property. Upon recording these documents, authorized work to the property may proceed. The applicant will be responsible for advanced payment of all document preparation costs and 5 of Agency out -of- pocket expenses. These costs may be included in the loan amount. 10. Paymnt Procedures. The Construction schedule will be used to identify the number and amount of each draw (not to exceed 5 draws per escrow) . A draw schedule shall be approved by Agency staff. The Contractor will be required to sign a statement that 10% of the loan amount (retention payment) will be withheld until 30 days after recording of Notice of Completion and final sign off from the Building Official for any and all required permits, whichever occurs last. This will provide the required 30 -day period for filing of mechanics' liens. 11. Qny ing monitoring.,. The Trust Deed Collection unit of the escrow company will service the loan and provide a monthly activity report of loan payments. This service includes monitoring payment of property taxes and maintenance of property insurance, as well as status of senior liens. SECTION VII LOAN DOCUMENTS The following documents will need to be prepared and submitted to the Agency for review: 1. Application and authorization to obtain credit report. Application will show the following: A. Description of the structure of the business and list of officers, partners and investors. Financial documents may be requested such as IRS filings, banking records or credit reports. B. Amount and specific purpose of the loan. All improvements to be made and costs of improvements and /or use of funds shall be provided in detail. C. Three bids for the work to be performed shall be provided, including the name and license number of the contractor who will manage the improvement process. D. How the loan will be secured. E. Signature of applicant, indicating acceptance of all the terms of the program. This will include Applicant responsibility for escrow and title and any related fees. 6 1 P 2. ownership documents (Deed of Trust, signed Rental Agreement or Purchase Document). If the applicant is a tenant, the owner of the building and /or site must approve of the project by signing an owners Release Form (see Exhibit "c "). 3. Financial History Corgi rations: Most current three months' bank statements, business tax returns for three years and current Profit and Loss Statement (prepared and certified by an accountant); PartnershilM, sole pr riatm " 10, etc.: Most current three months' bank statements, personal tax returns for three years and current Profit and Loss Statement prepared by an accountant, as necessary. If a new business, there may be a need for additional personal financial information. 4. Current business plan, including marketing component, showing projected revenues and expenditures for next three years. Business resume of proprietor. 5. Evidence of property owner's approval of desired tenant improvements, if applicable. 6. Evidence of insurance including fire, earthquake, and personal liability. 7. Approval and permits required by the City. 8. Evidence of contractor's liability and worker's compensation insurance ($1,000,000 coverage) written on an occurrence basis. 9. Copies of other loan agreements that may be outstanding. 10. Architectural renderings of all improvements on site, materials board and site map drawn to scale. Additional information may be requested by the Agency, if it is determined to be necessary to evaluate the application. C: \K\ECONOKIC \90H.001- 02/10/97 -Apri1 29, 1997 EXHIBIT "A" FLOW CHART APPLICATION PROCEDURES INITIAL MEETING WITH PROSPECTIVE APPLICANT APPLICATION RECEIVED AND REVIEWED BY STAFF ADDITIONAL INFORMATION REQUESTED IF NEEDED CREDIT REPORT ORDERED APPLICATION APPROVED OR DISAPPROVED BY STAFF CONTRACTOR QUALIFIED IF APPROVED ESCROW OPENED CONTRACTORS COMPLIANCE DOCUMENTS OBTAINED LOAN DOCUMENTS PREPARED E FLOW CHART APPLICATIONS PROCEDURES CONTINUED PAYMENT SCHEDULE DETERMINED NOTICE OF COMPLETION FILED LOAN AND ACTIVITY REPORT MONITORED EXH Z B I T to B'• BUS = N E S S LOAN APPL r CAT Z C7N 10 J it WY 3b 1Separately, please provide names and addresses of officers of the corporation. zSeparately, please provide names and addresses of general partners. C: \M \NLB \CCWCIAL\ LOANAP- 3/3/97 -April 29, 1997 1 1 ` f 9(W Load AMlication Moorpark Redomlopwmt Agency Business Loan Program Name of Business Current Address Previous Address (if less than 2 years at current address) Federal ID Number Number of years in business State Industrial Classification Code(SIC) Organizational Structure of Business: (Please check cane) Corporation' Sole Proprietorship Partnership2 Sub(S) Corporation Briefly describe the product(s) produced, service provided, etc. Annual Sales, if applicable (for year ) 1Separately, please provide names and addresses of officers of the corporation. zSeparately, please provide names and addresses of general partners. C: \M \NLB \CCWCIAL\ LOANAP- 3/3/97 -April 29, 1997 1 1 ` f 9(W Business References: Name Address Describe the purpose of this loan. (Please include architectural rendering, materials board and site map, as necessary, as well as an itemized list of repairs, retrofits and /or renovations.) Cost of improvements to be made with this loan Full cost of desired improvement project, if different Source of additional funds for improvement project, if applicable Name and Address of Property owner, if different from Applicant Do you anticipate increasing Yes your work force within the next 6 months? No C: \M \NLB \CCMRCIAL\ LOANAP- 3/3/97 -April 29, 1997 12 r If the answer to the previous question is "Yes ", please indicate what job classification(s) will be affected and how many employees you expect to add within each classification. Classification(s) Number of Employees average Salary /Hourly Rate I certify that the information presented as part of this application for a business loan from the Moorpark Redevieloparent Agency is accurate to the best of my knowledge, under penalty of perjury. I further attest that I an the duly authorized representative of this business. I grant permission to obtain a credit report on myself for the purpose of evaluating this application for loam and, if applicable, to obtain a credit report on this business for the same purpose. Name Title C:\M\KLB\CCMRCIAL\ LQANAP- 3/3/97 -April 29, 1997 13 Date .t VOWWW EXHIBIT "CV• OWNER = ND EMN 2 F =CATION AN D RE LEAS E FORM 14 1 OWNER INDEMNIFICATION AND RELEASE FORM Name (Print or Type Name) Telephone Address City State Zip Code PROPSATY LOCATION ( THE PRMUSBS) : Address City State Zip Code I hereby submit this application for the Moorpark Redevelopment Agency Business Loan Program and certify that the information and exhibits herewith submitted are true and correct to the best of my knowledge. Signature Date Pmt OMRMRt(S): I, the undersigned, certify that I an the owner(s) of the property upon Mich a construction project is planned, utilizing Moorpark Redevelopment Agency Business Loan funds. Further, the above signed Tenant /Agent has my permission to carry out this project. Owner(s) shall indemnify, defend with legal counsel approved by Agency and hold harmless the City of Moorpark and the Agency and their officers, employees, servants and agents from and against any 4 15 1 X and all claims, actions, liabilities, losses, damages, costs, attorneys' fees and other expenses of any nature for loss or damage to property, or injury to or death of persons, arising in any manner whatsoever, directly or indirectly, by reason of this hold Harmless Agreement, during the rehabilitation construction of the Promises or the use or occupancy of the Premises by any and all persons (collectively "Claim "), whether the Claim be made during the rehabilitation construction or thereafter, except such loss, damage, injury or death caused by the sole negligence of Agency or any of its officers, employees, servants or agents. If more than one owner, please provide a signed Owner Indemnification and Release Form for each property owner. PROPERTY OWNER (Print or Type Name) Telephone Address City State Zip Code 1 l Signature Date 16 '1W-M1=M MOORP1iRK REDEVELOPMENT AGENCY BUS =NESS LOAN PROGRAM « o J 0, — • W o �t.rii �. TABLE OF CONTENTS Section Pmsze Section I. Goals and Objectives ............................ 1 Section II. Loan Program Area ............................... 1 Section III. Eligible Projects ............................... 2 Section IV. Businesses eligible for funding ................. 3 Section V. Terms of the Loan ............................... 3 Section VI. Application Procedures .......................... 4 Section VII. Loan Documents ... ............................... 6 EXHIBITS Exhibit "A" Flow Chart Page 8 Exhibit "B" Business Loan Application Page 10 Exhibit "C" Owner Indemnification and Release Form Page 14 (i) � Q MOORPARK REDEVELOPMENT AGENCY BUSINESS LOAN PROGRAM SECTION I GOALS AND OBJECTIVES The Redevelopment Agency of the City of Moorpark has declared a need to assist with economic growth in the Moorpark Redevelopment Project Area. To accomplish this, the City and Agency will encourage the relocation and establishment of businesses, and efforts to assist existing businesses, in Moorpark's historic downtown. This encouragement will include a business loan program described herein for the Loan Program Area, which is located in the Redevelopment Project Area. Businesses will be considered for inclusion in this low- interest loan program on the basis of several factors. Enterprises deemed to complement existing businesses in the Loan Program Area will be considered, including those that will contribute to a desired mix of economic activity in the Loan Program Area and as well as the City generally. The overall goal is to create a more attractive and accessible downtown area, to encourage a higher level of foot traffic, to develop a more vibrant business climate and to encourage economic spin off and synergy among existing and new businesses. By providing an attractive incentive to existing businesses to remain in their present location or new businesses to locate here, this effort will expand the City's economic base, eliminate conditions leading to blight, increase the job market and improve the retail and service economy of the City. SECTION II LOAN PROGRAM AREA The loan program shall be limited to the area as follows: Moorpark Avenue from Everett Street south to Third Street; High Street, Walnut, Bard and Magnolia Streets from High Street to Charles Street. The buildings are to be consistent with the Downtown Plan and the building and use are to be consistent with Section 17 of the Municipal Code. The following Redevelopment Agency Business Loan Program requirements have been developed in order to more efficiently promote and administer this program and to establish parameters for applicants. d 1 SECTION III ELIGIBLE PROJECTS Both interior and exterior construction elements will be considered for this program. All item are to be consistent with the City's zoning regulations, building codes, and other applicable City, County, State and Federal codes and regulations. Any violation of the proceeding shall be corrected as part of this program. Failure to meet these standards may be cause for denial of the application. The following are examples of construction elements eligible for funding: 1. Reconstruction of parking lots. 2. Removal and replacement of signs. 3. Landscape treatment and irrigation systems. 4. Facade and exterior building renovation. 5. Decorative walls and fences. 6. Onsite sidewalks and curbing. 7. Roof mounted equipment screening. 8. External lighting. 9. Eaves and marquees. 10. Retrofit of unreinforced masonry construction. 11. Electrical, mechanical, heating /air conditioning and plumbing systems. 12. Tenant improvements. 13. Interior structural elements such as walls, ceilings and flooring. 14. Offsite improvements such as curbs, gutters and sidewalks. 15. Compliance with Americans with Disabilities Act (ADA) requirements. 16. Other similar improvements. 2 SECTION IV BUSINESSES ELIGIBLE FOR FUNDING The following businesses are eligible for funding: 1. New businesses locating in the Loan Program Area. 2. Existing businesses in the Loan Program Area. 3. Preferred businesses to be: A. Retail sales. B. Point of origin for the purpose of generating sales tax. C. Businesses that increase employment. D. Businesses that increase business traffic in the Loan Program Area. E. Businesses having a potentially positive impact on retail businesses in the Loan Program Area. SECTION V TERNS OF THE LOAN The following are the terms and conditions of the program loans: 1. Interest at a simple uncompounded rate of three percent (3.0 %) per annum. 2. Ten (10) year amortization. 3. No penalty for early payoff. 4. Loan payment to start 90 days from the execution of the construction contract. 5. Monthly loan payments are due and are to be paid on the first day of each month. Any payment not received by the sixth day of the month shall be considered late. A daily administrative fee will be charged on all delinquent accounts frdm the first 3 day of the month until payment is made. The administrative fee will be in the amount of ten percent (10 %) of the loan payment due, compounded daily and based on a 360 day year. (The mount due each day will be equal to the amount of loan payment(s) due, plus any previous fees accrued, multiplied by 10% divided by 360.) If after two months the default is not cured of all back payment owed, the Agency shall at its discretion, start foreclosure proceedings. 6. That the loan be secured by a lien against the property that is being rehabilitated, other real property, or insurable personal property, or liquid assets such as stocks and bonds of equal value. A third position may be considered with a good credit rating and adequate loan to value ratio. At least a 1.5 to 1 loan ratio shall be required. 7. The loan will be in the amount of up to $25,000. 8. The loan is to be no less than eighty percent (80%) of the cost of the project up to the maximum loan amount of $25,000. 9. With the application, the applicant shall deposit a non- refundable fee of $125.00 for staff processing time. 10. All escrow, title and recording fees or other fees charged by escrow will be part of the loan, or paid for by the applicant at the time the application is received by the Agency. The applicant shall make a deposit of $550.00 to Agency to cover these costs. If the loan does not close, any unexpended amount will be returned to the applicant. No interest shall be paid on this deposit. The applicant shall prepay (out of pocket) the Agency for any special studies or for consultants used in the processing of the application as determined by the Agency at its sole discretion. il. The payment of processing costs, a fee or deposit is no guarantee of approval. The Agency may deny or approve the application at its sole discretion. 1. a proupr or busi: desired use SECTION VI APPLICATION PROCEDURES AM with M"p"J3M Mlimmt- Upon contact by a applicant, staff will determine if the applicant meets the above program requirements and if the of -the funds may qualify under this Program. A 4 i. copy of these Program requireeents and a complete application package will be provided to the applicant. The application package will include the application fora and list of support documents needed to process the application. 2. At the time an application is submitted to the AgWwy, thie applicant shall deposit a non - refle fee of $125.40. Staff will review the application documents for caompleteeDss. ' Additional information or documentation will be requested at that time, if needed. 3. DAW402 , +„ The applicant shall provide three bids from approved coutgacstors for all work proposed to be performed. The lowest responsible bid subject to the program requirements and as determined by the A9ency at its sole discretion will be accepted if the loan is approved. 4, a credit report for the business and /or personal credit report of proprietor(s) will be obtained at applicant's cost. 5. QQ trWtorr Rai" Staff will investigate Contractor's current status with State licensing board and review evidence of insurance coverage. 6. AM, i gb&j I= BaiW bX staff . The application will be reviewed by staff for compliance with the Pragtae requirements. staff will inform the Agency Members when an application is received and whether or not the application is approved. 7. r„Li If the application is approved by the Agency, a construction escrow account will be opened. staff will notify the Finance Department of the anticipated business loan project, so that Finance can assign an account number for tracking purposes. Staff will prepare a written retest for the Finance Department for the transfer of the approved funds to escrow, identifying the assigned account number for the project. s. Staff will obtain evidence of Contractor's naainq Agency as additional insured for the approved work. Staff will also ensure that the Contractor has a current State License and City Business Registration. g, Loan documents will be prepared, including promissory note and Deed of Trust. When executed, the Deed of Trust will be recorded, along with a Request for Notice. Thus, the Aqency " will be notified of any changes to prior liens on the property or if any change occurs in title to the property. Upon recording these documents, authorized work to the property may proceed. The applicant will be responsible for advanced payment of all document preparation costs and 5 ' 1 Agency out -of- pocket expenses. These costs may be included in the loan amount. 10. PAyAyt Pros lures . The Construction schedule will be used to identify, the number and amount of each draw (not to exceed 5 draws per escrow). A draw schedule shall be approved by Agency staff. The Contractor will be required to sign a statement that 10% of the loan amount (retention payment) will be withheld until 30 days after recording of Notice of Completion and final sign off from the Building Official for any and all required permits, whichever occurs last. This will provide the required 30 -day period for filing of mechanics' liens. 11. ongoing MWitoring. The Trust Deed Collection unit of the escrow company will service the loan and provide a monthly activity report of loan payments. This service includes monitoring payment of property taxes and maintenance of property insurance, as well as status of senior liens. SECTION VII LOAN DOCUMENTS The following documents will need to be prepared and submitted to the Agency for review: 1. Application and authorization to obtain credit report. Application will show the following: A. Description of the structure of the business and list of officers, partners and investors. Financial documents may be requested such as IRS filings, banking records or credit reports. B. Amount and specific purpose of the loan. All improvements to be made and costs of improvements and /or use of funds-,shall be provided in detail. C. Three bids for the work to be performed shall be provided, including the name and license number of the contractor who will manage the improvement process. D. How the loan will be secured. E. Signature of applicant, indicating acceptance of -all the terms of the program. This will include Applicant responsibility for escrow and title and any related fees. 2. Ownership documents (Deed of Trust, signed Rental Agreement or Purchase Document). If the applicant is a tenant, the owner of the building and /or site must approve of the project by signing an owners Release Form (see Exhibit "C"). 3. Financial History Cor i4 s: Most current three months' bank statements, business tax returns for three years and current Profit and Loss Statement (prepared and certified by an accountant); Partnership , Role_JRr� . 4.0% higg , etc.,: Most current three months' bank statements, personal tax returns for three years and current Profit and Loss Statement prepared by an accountant, as necessary. If a new business, there may be a need for additional personal financial information. 4. Current business plan, including marketing component, showing projected revenues and expenditures for next three years. Business resume of proprietor. 5. Evidence of property owner's approval of desired tenant improvements, if applicable. 6. Evidence of insurance including fire, earthquake, and personal liability. 7. Approval and permits required by the City. 8. Evidence of contractor's liability and worker's compensation insurance ($1,000,000 coverage) written on an occurrence basis. 9. Copies of other loan agreements that may be outstanding. 10. Architectural renderings of all improvements on site, materials board and site map drawn to scale. Additional information may be requested by the Agency, if it is determined to be necessary to evaluate the application. C7 \N \ICCWOMIC \BM.001- 02110197 -Ar=i1 29, ]A97 7 1 EXHIBIT "A" FLOW CHART APPLICATION PROCEDURES INITIAL MEETING WITH PROSPECTIVE APPLICANT APPLICATION RECEIVED AND REVIEWED BY STAFF ADDITIONAL INFOFMATION REESMTED IF NZZDED CREDIT REPORT ORDERED APPLICATION APPROVED OR DISAPPROVED BY STAFF CONTRACTOR QUALIFIED IF APPROVED ESCROW OPENED CONTRACTORS COMPLIANCE DOCUMENTS OBTAINED LOAN DOCUMENTS PREPARED 8 FLOW CHART APPLICATIONS PROCEDURES CONTINUED PAYMZNT SCHEDULE DS'i'MINED NOTICE OF COMPLETION FILED LOAN AND ACTIVITY REPORT MONITORED 9 Qtiti�.3� EXH28 =T "8'• SUS 2 N E S S LOAN AP PL =CAT = ON 10 �; 'Separately, please provide names and addresses of officers of the corporation. ZSeparately, please provide names and addresses of general partners. C: \M \NLB \CCMCIAL\ LOANAP- 3/3/97 -April 29, 1997 1 1 } 9O7 Loan AWlication Moorpark PAdwalvt lgncy Businoss Loan Progrm Name of Business Current Address Previous Address (if less than 2 years at current address) Federal ID Number Number of years in business State Industrial Classification Code(SIC) Organizational Structure of Business: (Please check Corporation' Sole Proprietorship Partnership2 Sub(S) Corporation Briefly describe the product(s) produced, service provided, etc. Annual Sales, if applicable (for year ) 'Separately, please provide names and addresses of officers of the corporation. ZSeparately, please provide names and addresses of general partners. C: \M \NLB \CCMCIAL\ LOANAP- 3/3/97 -April 29, 1997 1 1 } 9O7 Business References: Name Address Describe the purpose of this loan. (Please include architectural rendering, materials board and site map, as necessary, as well as an itemized list of repairs, retrofits and /or renovations.) Cost of improvements to be made with this loan Full cost of desired improvement project, if different Source of additional funds for improvement project, if applicable Name and Address of Property Owner, if different from Applicant Do you anticipate increasing your work force within the next 6 months? Yes No C: \M \NLB \CCMRCIAL\ LQANAP- 3/3/97 -April 29, 1997 12 1 036 If the answer to the previous question is "Yes ", please indicate what job classification(s) will be affected and how many employees you expect to add within each classification. Classification(s) Number of.Employees average Salary /Hourly Rate I certify that the information presented as part of this application for a business loan from the Moorpark Redevelopsent urgency is accurate to the best of my knowledge, under penalty of perjury. I further attest that I an the duly authorized representative of this business. I grant permission to obtain a credit report on myself for the purpose of evaluating this application for loan and, if applicable, to obtain a credit report on this business for the same purpose. Name Title Date c:\M \NLB \caKRCIAL\ LOANAP- 3/3/97 -April 29, 1997 13 ��,,]] �+� Ex142B =T '•C•• ©WNER =NDE1�IrT =F =C2rT20N A%JW D 1:;?-ELL?i3 E FORM 14 i • VO�rt��t� OWNER INDEMNIFICATION AND RELEASE FORM APPLICANT IS: Lessee or Authorized Agent Name (Print or Type Name) Telephone Address P110FERTY LOCATION ( THE PREMISES) : City State Zip Code Address City State Zip Code I hereby submit this application for the Moorpark Redevelopment Agency Business Loan Program and certify that the information and exhibits herewith submitted are true and correct to the best of my knowledge. Signature Date PNOMWY OIMM1 M: I•,, the undersigned, certify that I an the owner(s) of the property upon which a construction project is planned, utilizing Moorpark Red 4elopeent Agency Business Loan funds. Further, the above signed Tenant /Agent has my permission to carry out this project. Owner(s) shall. indemnify, defend with legal counsel approved by Agency and hold harmless the City of Moorpark and the Agency and their officers, employees, servants and agents from and against any 15 t and all claims, actions, liabilities, losses, damages, costs, attorneys' fees and other expenses of any nature for loss or damage to property, or injury to or death of persons, arising in any manner whatsoever, directly or indirectly, by reason of this Hold Harmless Agreement, during the rehabilitation construction of the Premises or the use or occupancy of the Premises by any and all persons (collectively "Claim"), whether the Claim be made during the rehabilitation construction or thereafter, except such loss, damage, injury or death caused by the sole negligence of Agency or any of its officers, employees, servants or agents. If more than one owner, please provide a signed owner Indemnification and Release Form for each property owner. PROPERTY ONlM (Print or Type Name) Telephone Address City State Zip Code 1 ! Signature Date 16 '�� TO: DATE: Chairman and Members of the Moorpark Redevelopment Agency L mow- .'k r Steve Hayes, Redevelopment Agency Manager/ Economic Development Manager March 28, 1997 (Mtg. of 5/7/97) SUBJBCT: Consider Reallocation of Appropriations On November 6, 1996, Resolution 96 -47 was adopted which appropriated funds to the MRA Low/Moderate Income Housing Fund (Fund 232). The funds appropriated were for two purposes: (a) $2,700 for additional repairs at 661 Moorpark Avenue; and (b) $50,000 for a Housing Assistance Program for properties to be rehabilitated using a 203(k) loan. The Low /Moderate Income Housing Fund was used for the monies for repairs to 661 Moorpark Avenue because this property was acquired for the purpose of providing housing for individuals displaced due to City code enforcement activities. Although 661 Moorpark was acquired for the purpose of providing housing for dislocated Low and Moderate Income individuals, no City code enforcement activities have required the relocation of individuals or families, to date. The property has been rented at market rate to a family that does not meet Low/Moderate Income criteria. For this reason, a more appropriate source of funds for repairs to the property is Fund 410, the MRA Capital Improvement Fund. The other component of Resolution 96 -47 is the allocation of $50,000 to Fund 232 for a Housing Assistance Program, using the 203(k) loan. Rescinding the original resolution which authorized the funds and approving two new resolutions will accomplish the following: 1. Remove the $2,700 allocation to Fund 232 and allocate those same monies to Fund 410; and 2. Re- authorize $50,000 for a Housing Assistance Program, to be funded from Fund 232. C:A M\ NLB\ AGNDARPT \RESOTRSF- 3i,,8 /97- p,p;ii 29, • The effect of the rescission and two new resolutions is to transfer $2,700 from Fund 232 to Fund 410 and to leave $50,000 for the 203(k) program in Fund 232. Current fund balances and revised projected fund balances for Fund 232 and Fund 410 are shown as Exhibit "A ". Staff recommends a rescission of Resolution 96 -47 and adoption of two new resolutions: one to authorize $2,700 to be allocated to Fund 410 and the other to authorize that $50,000 be allocated to Fund 232. C:AM \NLB \AGNDARPT \RESOTRSF- 3/28/97 -Apri1 23, 199