TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary with private property owners in Long Beach to identify economic development projects and share costs to implement the Business Corridor Improvement and Property Beautification Partnership Program on private property, in an amount not to exceed $25,000 per property, as funds are available to support the program. (Citywide)
DISCUSSION
On April 4, 2017, the City Council adopted the Blueprint for Economic Development, which includes a recommendation to invest in proactive programs that support business expansion, business retention, grow sales tax and business licensing revenue, and support economic development initiatives in the City of Long Beach (City). On September 5, 2017, the City Council approved one-time funding in the amount of $450,000 for business corridor improvements, divided evenly among the Pacific Avenue, Anaheim Boulevard, and Carson Avenue business corridors. The goals of this funding was to invest in projects that improve property values, increase the volume of customers, and promote economic growth along commercial corridors identified by the City Council.
To implement these goals, the Economic Development Department (ED) is proposing a Business Corridor Improvement and Property Beautification Partnership Program (Program). The Program will be available to any individual property owner, group, or association of property owners located within the identified project areas on a first-come, first-served basis, as funds are available. Preference will be given to projects that have the potential to result in significant economic impacts to one or more businesses. Under the standard terms and conditions of the partnership agreement, staff will pursue cost-sharing opportunities to leverage private investment, but would not be a requirement of the Program. Expected projects completed under the Program include, but are not limited to, façade improvements, exterior painting, light fixture replacement, awning installation, and landscape improvements. Participants in the Program will provide right-of-entry and indemnification to the City and its contractors, and continue to maintain all improvements made to the property for a minimum period. All projects approved through the Program will provide the general prevailing wage to contractors and workers and will uphold appropriate design standards established by the City.
To implement the Program, staff is requesting the City Council approval to enter into standard partnership agreements with property owners in an amount not to exceed $25,000 per property, as funds are available to support the Program. Staff will return to the City Council for approval to enter into partnership agreements that exceed $25,000 on an as-needed basis.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on January 23, 2018 and by Budget Analysis Officer Julissa José-Murray on January 29, 2018.
TIMING CONSIDERATIONS
City Council action is requested on February 20, 2018, to allow City staff to identify projects, enter into partnership agreements with property owners, and to expend one-time funds approved by the City Council for Fiscal Year 2018.
FISCAL IMPACT
The initial budget for the Business Corridor Improvement and Property Beautification Program will be supported by $450,000 in one-time funds budgeted in the General Fund for business corridor improvements. Additionally, budgeted Community Development Block Grant (CDBG) funds will be used for businesses in eligible CDBG areas. Staff will also work to identify and secure matching funds contributed by private property owners or donors, and secure other funding sources to support this Program. As additional funds become available, staff will return to the City Council to request that the Program budget be enhanced. No operating and maintenance costs are anticipated, since the property owners are responsible for upkeep of the property improvements. While the Program is expected to promote job growth through economic expansion of small businesses, the direct job impact of this recommendation is unknown.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER