Grant Program Discussion
Assistant City Manager Brian James provided the following highlights and updated information:
• Historic Preservation Grant since 2016 (5 awarded)
• Local Flavor Street Grant since 2019 (20 awarded)
• Annual amounts
•2016 1 $20,000
•2017 2 $17,250
•2018 1 $20,000
•2019 4 $72,000
•2020 15 $130,000
•2021 2 $31,000
• Only a few properties have seen a significant increase in valuation
•1:1 match
• Historic Grants for residential structures limited to roofs, foundations and walls. Commercial for most major repairs.
• Local Flavor
•Signage
•Façade
•Site
•Capital Equipment
•Systems
• Current Local Flavor caps payments at $20,000 per year (calendar)
• Proposed Changes – Local Flavor
• Existing Structure – Capped at $40,000 max over 5 years – this allows complete renovations at one time
• New Structures – up to $50,000 max at one time over 5 years. Is a 1:4 match – (we award up to $50,000 if $200,000 is spent by owner – so total of improvements is $250,000).
• Owners of existing structures often spend money on improvements – remodels not eligible.
• Current Local Flavor caps payments at $20,000 per year (calendar)
• Local Flavor Street Grant since 2019 (20 awarded)
• Annual amounts
•2016 1 $20,000
•2017 2 $17,250
•2018 1 $20,000
•2019 4 $72,000
•2020 15 $130,000
•2021 2 $31,000
• Only a few properties have seen a significant increase in valuation
Members and guests addressed questions regarding the following:
- $20,000 grant cap amount
- Is grant money available to other businesses not on Main Street
- 4 year retention usage
- Clawback?
- Grant opportunity - window
Brian James noted that the application process was intentionally kept simple in order to make it easier for property owners to apply. Recently, at the request of Council, staff is requesting more information – elevations and plans for the aspect of the grant work that is visible from outside of the property. For some items, electrical, plumbing and HVAC it's hard to get documents that help a person to envision what the work will look like.
Based on feedback from folks who have applied for grants, a few changes are proposed. One would be to cap the grants at $40,000 over a 5-year period. This will allow folks who are making major renovations and are not limited by the desire to not improve the building by more than 50% over the current value, to do all the improvements at once – and not stagger it over 2 calendar years.
The other to encourage new structures is up to $50,000 for new structures (and not other improvements – signage, site work, equipment) but it requires a 4 to one match (not a 1:1). This is a one-time grant for that property.
There was discussion about the cost of renovating buildings and work that is necessary but not eligible for the grant – such as interior finish out work.
Discussion occurred from the residents attending and Council. It was noted the focus of this program is Main Street until we get it done. There have been discussions about expanding the program or creating another one. It was noted that funding for the program comes from the general fund, some of which is budgeted but additional funds are pulled from contingency as needed. Some comments were made about limiting the grant to just Main Street and maybe FM 78 due to some of the unique challenges. There was discussion regarding concerns of folks coming in, applying the grant and the flipping of the property. After discussion the majority was OK with this as it achieved the goal of improving properties. It as noted that if this becomes a problem, consider requiring a hold period and restructure the grant. Comments were made about discussing other grant opportunities, beyond Main Street, at a future retreat. The direction was to bring the two grant changes to City Council listed below:
Cap the grants at $40,000 over a 5-year period but increase the annual maximum to $40,000. Allow up to $50,000 for new structures (and not other improvements – signage, site work, equipment) but it requires a 4 to one match (not a 1:1). This is a one-time grant for that property.