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AGENDA ITEM NO. 23.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 03/11/2025 Originating Department: Housing |
City Manager:
Department Head:
SUBJECT:
The Hawthorne Commercial Facade Program funded by the Community Development Block Grant (CDBG)
RECOMMENDED MOTION:
Staff recommends that the City Council receive and file this report.
DISCUSSION:
The City launched a Commercial Façade Program approved by City Council in 2022, that focused on making improvements to the exterior street-facing sides of local business buildings. Businesses had the opportunity to re-brand to potentially draw greater profits. The CDBG required 3 types of applications: Slum Blight, businesses who had full-time employees and businesses who were willing to create at least one full-time equivalent position (FTE). A business could receive up to $30,000 in grant funding per each verified full-time employee. For the latter two, reporting was required for a minimum of twelve months.
The purpose of the Commercial Façade Rehabilitation Program (“Program”) was to provide financial assistance to property and business owners with the renovation of commercial buildings and structures. The Program would fund grants to eligible commercially zoned and developed parcels of land located within the City limits of the City of Hawthorne.
The goal of this program was to facilitate commercial revitalization; stimulate private investment; to preserve and beautify the commercial corridors; to upgrade the physical image of the City; and to generate shopping, tourism, and a pleasant walking environment by improving the visual esthetics of the City with enhancements in design, color schemes, and building facades through the use of the City’s Community Development Block Grant (CDBG) Funds. By stimulating private investment and customer patronage, the Program adds value to the City’s economy and enhances the community experience.
The City had to conduct a Slum Blight Analysis to ensure that this funding type could be used without the requirement of a FTE position and had to publish a RFP for design firms. After the applications were marketed to the public in 2023, staff found that businesses did not want to produce the information that HUD required to be eligible for funding. Businesses also did not want the burden of reporting on their FTE positions for the required 12-month period as failing to do so would mean they would have to repay the City the entire award amount.
Currently, when federal funding is being cut and based on the steps and length of time required to facilitate this program, staff do not recommend the City Council consider this program as a CDBG project. Additionally, funding is no longer available to make a viable go at a good project as reduced funds have been awarded to more pressing projects such as Hawthorne Alleys and the mandatory Section 108 Loan repayments. When the funding was available and allocated towards this project, four applications were received, and only two were eligible.
The purpose of the Commercial Façade Rehabilitation Program (“Program”) was to provide financial assistance to property and business owners with the renovation of commercial buildings and structures. The Program would fund grants to eligible commercially zoned and developed parcels of land located within the City limits of the City of Hawthorne.
The goal of this program was to facilitate commercial revitalization; stimulate private investment; to preserve and beautify the commercial corridors; to upgrade the physical image of the City; and to generate shopping, tourism, and a pleasant walking environment by improving the visual esthetics of the City with enhancements in design, color schemes, and building facades through the use of the City’s Community Development Block Grant (CDBG) Funds. By stimulating private investment and customer patronage, the Program adds value to the City’s economy and enhances the community experience.
The City had to conduct a Slum Blight Analysis to ensure that this funding type could be used without the requirement of a FTE position and had to publish a RFP for design firms. After the applications were marketed to the public in 2023, staff found that businesses did not want to produce the information that HUD required to be eligible for funding. Businesses also did not want the burden of reporting on their FTE positions for the required 12-month period as failing to do so would mean they would have to repay the City the entire award amount.
Currently, when federal funding is being cut and based on the steps and length of time required to facilitate this program, staff do not recommend the City Council consider this program as a CDBG project. Additionally, funding is no longer available to make a viable go at a good project as reduced funds have been awarded to more pressing projects such as Hawthorne Alleys and the mandatory Section 108 Loan repayments. When the funding was available and allocated towards this project, four applications were received, and only two were eligible.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None
FISCAL IMPACT:
None
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act