Title
Adaptive Reuse/Building Rehabilitation Program Grant for 503 Main Street
Body
RECOMMENDED ACTION (Motion):
The proposed grant request is $150,000 for the property located at 503 Main Street submitted by Derek Metson on behalf of the property owner, Danielle Walsh. Staff requests that the Urban Renewal Commission consider staff's approval of a grant award of $ 120,000 for the project.
BACKGROUND:
For Fiscal Year 2016-17, the Oregon City Urban Renewal Commission set aside $200,000 into the Adaptive Reuse/Building Rehab program to incentivize significant private property investment within the Urban Renewal District with the intent that such investment will result in the highest and best use of the District's commercial property ultimately increasing property values.
The program is a matching grant intended to fund a limited number (one to two) medium to large-scale interior rehabilitation (non-facade) projects. A typical project will be a combined minimum of $100,000, with a maximum award for any one project of $150,000. Particular emphasis and priority is placed on rehabilitation projects that incorporate mixed-use elements, consist of quality construction and add value to the urban renewal area. There are two application periods throughout the fiscal year, one in July and the second in January (should funds still be available).
This building currently sits vacant and has done so for approximately two years. Ms. Walsh purchased the building in August 2016 with the intent of occupying the space in its entirety with 1,600 square feet of retail and coffee shop along with 555 square feet of office on the second level. The space may be divided to accommodate up to 800 square feet of office space utilized by separate tenants while the coffee shop and retail remain open. The renovations, as part of this grant award, will include restrooms, a trash enclosure, and improvements to the mechanical/electrical room, main dining room and bar locations. Two layers of false ceilings will be removed to expose the original wood structure. Nearly all the glazing in the building has been removed. The windows will be reopened to make this a viable retail location. The business will open with five full time employees and increase that number to seven by December, 2016.
In addition to the Adaptive Rehab/Reuse project, the applicant is planning to simultaneously construct storefront improvements but the storefront improvements are not included in the matching funds for this application. The total Adaptive Rehab/Reuse project is estimated at $276,306 with matching funds totaling $138,153.
A staff site visit and review was conducted for the application using the worksheet and project evaluation matrix included in the application information packet. As part of the review process, an application must obtain an average score of 70% or higher in order to be considered for a grant award. The staff review of this application resulted in an average score of 76%. The Grant Review Committee project evaluation comments included concerns with the grade of materials used and the window pane design. Aside from those concerns, the Committee agrees that this project is in a strategic location in downtown and could serve as a catalyst for future projects in this area. Therefore, the project score was elevated to reflect its catalytic value. It is expected that this project will increase the number of jobs in downtown, provide needed community space and occupy and improve a dilapidated building that has sat vacant on a prominent corner of Oregon City's Main Street for two years.
BUDGET IMPACT:
Amount: $120,000
FY(s): 15/17
Funding Source: Urban Renewal Adaptive Rehab/Building Reuse Grant Program