HomeMy WebLinkAboutResolutions - 1985.03.27 - 11071MISCELLANEOUS RESOLUTION NO. 851 07 DATE: March 28, 3985
BY: PUBLIC SERVICES COMMITTEE, James E. Lanni, Chairperson
IN RE: COMMUNITY DEVELOPMENT DIVISION - Community Selection Criteria for the
Commercial Assistance Program (CAP)
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen
WHEREAS, Oakland County has been a recipient of Community Development Block
Grant funds from the U.S. Department of Housing and Urban Development since 1974 and has
operated a residential rehabilitation program since 1976; and
WHEREAS, the U.S. Department of Housing and Urban Development has established
procedures allowing Community Development Block Grant recipients to draw (in one lump
sum) the funds designated for property rehabilitation in their approved CDBG application in
order to establish a Rehabilitation Leveraging Fund with a private financial institution; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #82283 of September
21, 1982 adopted the basic concept of utilizing Community Development Block Grant funds to
leverage private financial resources for the rehabilitation of residential and commercial
property; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #83034 of February
24, 1983 approved the creation of a commercial rehabilitation financing program with
Community Development Block Grant funds and authorized the Community Development
Division to solicit lenders for a financial leveraging agreement; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #84239 of August 30,
1984 approved the Rehabilitation Leveraging Agreement with Manufacturers National Bank of
Detroit for a program of financing commercial property rehabilitation; and
WHEREAS, the 48 communities participating in the County's Community
Development Block Grant program through Miscellaneous Resolution #84211 of July 26, 1984
were invited on January 18, 1985 to submit proposals to participate with the County in the
Commercial Assistance Program (CAP); and
WHEREAS, the Community Development Division has received proposals from 17
communities; and
WHEREAS, the Community Development Division has developed CAP goals and
objectives (Attachment A), recommended the targeting and allocation of CAP funds
(Attachment B), defined "commercial business district" (Attachment C), prepared CAP
community evaluation and selection criteria (Attachment D), and developed individual CAP
rehab project review criteria (Attachment E); and
WHEREAS, the Community Development Citizens Advisory Council has
recommended approval by unanimous vote of Attachments A, B, C, D, and E
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners adopts the CAP goals and objectives specified in Attachment A; approves the
targeting and allocation of CAP funds described in Attachment B; adopts the definitions for
commercial business district outlined in Attachment C; approves the CAP community
evaluation and selection criteria recommended in Attachment D; and adopts the individual
CAP rehab project criteria specified in Attachment E.
BE IT FURTHER RESOLVED that the Community Development Division be directed
to utilize the community evaluation criteria to select CAP target communities with final
approval to be made by the Oakland County Board of Commissioners.
BE IT FURTHER RESOLVED that upon final selection of the CAP target
communities, the Public Services Committee will receive regular quarterly reports.
BE IT FURTHER RESOLVED that the Community Development Division be directed
to establish a recapture and reallocation process for CAP funds.
Mr. Chairperson, on behalf of the Public Services Committee, I move the adoption of
the foregoing resolution.
PUBLIC SERVICES COMMITTEE
COMMERCIAL ASSISTANCE PROGRAM
INDEX TO ATTACHMENTS
Attachment A Statement of Goals and Objectives
Attachment B Rationale for Community Targeting and Funding
Allocation
Attachment C Commercial Business District Definitions
Attachment D Community Evaluation and Selection Criteria
Attachment E Individual Rehab Project Review Criteria
ATTACHMENT A
COMMERCIAL ASSISTANCE PROGRAM - Statement of Goals and Objectives
The Commercial Assistance Program (CAP) is a new economic development public-private
financing venture for Oakland County and reflects the growing recognition that business
district revitalization should play a significant role in communities' economic development
programs. CAP exists through the establishment of a commercial rehabilitation loan fund
created by a Rehab Leveraging Agreement with Manufacturers National Bank of Detroit.
Utilizing $350,000 in Community Development Block Grant (CDBG) funds, we expect to
leverage an estimated total pool of $2,303,000 in public and private funds to provide below-
market, fixed rate, 100% financing for property rehabilitation in selected commercial
business districts.
CAP was developed by the Oakland County Community Development Division in response to
requests from the County's Community Development Block Grant participating communities
for assistance in meeting commercial rehabilitation needs. The County's Planning Division
has a long standing policy of providing planning as6stance to communities concerned with
revitalizing older business districts. However, communities had noted the limited ability of
commercial property owners (interested in rehab and downtown revitalization) to borrow
funds at the high 1980-82 interest rates.
Simultaneously, the Community Development Division was evaluating how it would take
advantage of the CDBG regulations allowing for the lump-sum drawdown and deposit of
rehabilitation funds. Utilization of the lump-sum deposit opportunity provided the county
with a mechanism to initiate a commercial rehab program.
In establishing CAP, Oakland County joins the ranks of a select group of urban counties
which are utilizing their CDBG funds to leverage private bank resources to support
commercial district revitalization.
The goal of the Commercial Assistance Program is the physical and economic revitalization
of business districts in Oakland County.
CAP objectives are:
• To encourage communities to develop and implement comprehensive business
district revitalization programs;
• To create a favorable economic climate in commercial business districts for
private reinvestment;
• To forge public-private partnerships among the County, local governments,
merchants, property owners and financial institutions to accomplish commercial
business district revitalization goals.
Specifically, CAP will:*
• Improve the visual image of commercial business districts through property
rehabilitation; and
• Provide incentives for private investment by offering below market rate financing
assistance for the rehabilitation of commercial properties.
*County Board resolution #83034, Attachment A, adopted 2/24/83.
A-I
ATTACHMENT B
RATIONALE FOR COMMUNITY TARGETING IN THE COMMERCIAL ASSISTANCE PROGRAM
Background - On 1/18/85, the 48 communities participating with the Community
DevelopmeiTt Division in the Community Development Block Grant program were notified
that the Commercial Assistance Program (CAP) had been officially authorized by the Board
of Commissioners. $350,000 in CDBG rehab funds will be deposited with Manufacturers
National Bank to leverage approximately $1,953,000 in private funds to create a total
leveraged commercial rehabilitation loan pool of approximately $2,303,000 for low-interest,
fixed rate commercial rehabilitation financing.
Seventeen (17) communities responded with proposals expressing their interest in
participating with the County in the new program -Village of Holly, Village of Oxford, City
of Hazel Park, City of South Lyon, City of Ferndale, City of Huntington Woods, City of
Rochester, City of Walled Lake, Village of Beverly Hills, Village of Milford, City of
Farmington, City of Oak Park, West Bloomfield Township, Royal Oak Township, City of
Berkley, Springfield Township and the Village of Ortonville.
Twelve (12) of these 17 communities estimate that a total of $2,947,000 in commercial
rehab work could be accomplished through CAP. (5 communities did not include any project
cost estimates.) Community estimates range from a low of $42,000 to a high of $945,000.
Recommendation OCCD, with approval from the Community Development Citizens
Advisory Council, the Public Services Committee, and the County Board of Commissioners,
will select 5-8 CAP communities (from among the 17 interested communities). The
evaluation and selection criteria included i Attachment D will be utilized.
Justification for Community Targeting
A. Clearly, the rehab project costs ($2,947,000) estimated by just 12 of the 17
applicant communities exceed the available $2,303,000 by roughly $650,000.
Because CAP funds are not sufficient to meet the projected demand for
commercial rehab assistance, the program needs to be focused in some fashion.
B. Since the goal of the Commercial Assistance Program is the economic and physical
revitalization of business districts, it is essential for CAP funded projects to result
in significant and substantial improvements which leave a positive visual
impression, generate community and shopper enthusiasm, instigate additional
commercial rehab activity, and signal economic potential to private investors and
prospective entrepreneurs. CAP will produce the strongest community results if
the funds are limited to 5-8 communities, rather than widely distributed to all 17
applicants.
C. OCCD cannot nor should not prescribe a singular approach for the communities to
use in helping us structure CAP for maximum local results. In effect, OCCD will
need to design a modified CAP program to meet the individual needs, priorities and
capabilities of each community and business district.
As this is the first year for CAP and because every component of the program will
develop incrementally, CAP will be most effective if OCCD staff energies can be
directed to a limited number of communities which are "ready to go" and from
which we'll have the most likelihood of solid results. To enable CAP to have the
revitalizing impact we seek, it is important to select communities in which
business district revitalization is a high public priority, has received planning
attention, and has generated private sector interest.
B-1
Recommendation - 85% of the leveraged commercial rehab loan pool (approximately Si,
957,550) will be directed to property owners and merchants located in the targeted business
districts of the designated CAP communities. Individual community funding allocations will
be negotiated in May when the Community Development Division and each selected CAP
community execute a Letter of Agreement. The individual community funding allocations
will be determined by the local estimates of need and interest in commercial property
rehabilitation, and the availability of funds. Merchants and property owners in the
designated CAP commercial business districts will have 18 months to take advantage of
CAP financing. Performance standards for the timely use of CAP funds will be incorporated
into each Letter of Agreement.
The remaining 15% (approximately $345,450) of the leveraged pool of funds will be available
to outstanding, individual commercial rehab projects located in the business districts of only
those communities which applied for, but were not selected as the CAP target communities.
Depending on the final number of CAP communities, individual commercial rehab projects
will become eligible for CAP financing in the order of their community's ranking from the
CAP community selection process. Starting with the next highest rated community (after
the CAP cut-off) and proceeding in rank order, CAP funds will be allocated to individual
projects, up to a maximum of 3 projects per community. In this fashion, we expect to assist
3-5 more communities in some way with their commercial revitalization plans, This will be
particularly suitable for communities with just a few "live" projects or for the business
district where the rehab of several buildings will really stimulate community and business
enthusiasm for a more comprehensive effort. Individual CAP rehab project review criteria
are included in Attachment E.
Prior to executing the Letters of Agreement, the Community Development Division will
establish procedure and criteria for the recapture and reallocation of communities CAP
funds. These procedures will be triggered by insufficient community performance in using
the CAP funds, the specifics of which will be detailed in each Letter of Agreement.
ATTACHMENT C
COMMERCIAL BUSINESS DISTRICT - Definition
For purposes of the Commercial Assistance Program, the term "targeted business district"
will be used in a generic fashion to refer to the following three types of commercial business
districts:
• Downtown/Main Street/Central Business District
• Commercial Strip Corridor
• Neighborhood Shopping Center
A. Downtown/Wain Street"/Central Business District
A downtown business district is a contiguous concentration of structures zoned and
used primarily for retail and commercial enterprises, roughly 8-10 blocks square or 4-5
linear blocks long. The downtown is commonly located around the intersection of
major thoroughfares or at the community's historical "crossroads". The central
business district is usually comprised of a wide range of retail, office, civic, cultural
and service establishments, and serves a market area beyond the actual legal
boundaries of the community. It is often surrounded by an older residential
neighborhood.
The "Main Street" is usually perceived as the community's center. The downtown
functioned as the historic center for trade, commerce, government, religion,
transportation, and socializing. Downtown buildings normally date from the
community's o.arly settlement and growth and may be important locally for historic,
architectural or cultural reasons. As a collection, "Main Street" buildings are often
similar in height, building material and design; they are characterized by a dominant
architectural style; and the buildings can provide the area with a cohesive, visual
image. Often, the facades of downtown buildings have been modernized or improved
to such a significant degree that the original architectural quality is hidden.
B. Commercial Strip Corridor
This business district stretches along a heavily trafficked highway route and may lead
to the traditional downtown district. For CAP purposes the business district should be
limited to a one mile segment of the corridor. Although strip corridor businesses
certainly serve the local market, they also capture a share of the regional consumer
market due to their location along a heavily traveled highway route. The commercial
strip corridor is characterized by:
• mixed commercial uses (retail, office, service, light manufacturing, warehousing,
and food/beverage) with a scattering of non-conforming residences, undeveloped
land parcels, and vacant/deteriorating structures. The location and activity of the
varied enterprises are a function of many individual decisions made incrementally
over the past 30-40 years; and
• a combination of contiguous and individual, noncontiguous structures of varied
building styles and construction materials, dating primarily from the post World
War II period; and
C-1
* signage, setbacks, landscaping, parking and entrance/egress indicative of the kind
of local land use regulations (currently inadequate) but commonly in use during the
40's and 50's. Such has resulted in poorly defined and inadequate off street parking,
a cluttered and congested visual image, hazardous traffic conditions, unsightly
storage of trash and supplies, and non-existent or poorly maintained landscaping.
C. Neighborhood Shopping Center
This type of business district evolved during the late 1950's to provide convenience
goods and personal services for the day to day living needs of growing, suburban,
residential areas. Planned, constructed, owned and managed as singular units, the
neighborhood shopping center averages 50,000 square feet Space is leased to
individual entrepreneurs which conform to the center's prescribed market mix.
Parking for the customers of all tenants is provided. Adjacent to a residential area,
the neighborhood shopping center is located on a major thoroughfare, often at the
intersection with another commercial strip. As residential and economic growth
expanded out from Detroit, community shopping centers and regional malls were
constructed. Many neighborhood shopping centers are now showing their age. They
must work to re-establish their role to successfully compete in the ever changing
retail shopping center market. Shopping centers larger than 50,000 square feet will
not be considered for CAP.
C-2
ATTACHMENT 0
CAP COMMUNITY EVALUATION AND SELECTION CRITERIA
(Sum maryY
Following the 1/18/85 request for proposals distributed to all 48 participating CDBG
communities, 17 communities notified the Community Development Division of their
interest in participating with the County in CAP. Evaluation criteria and a point ranking
system have been developed to select target business districts. The CAP coordinator will
conduct a site visit and interview in each of the 17 communities to obtain the information
by which CAP selections will be made. Communities will be provided with the evaluation
criteria in advance of the site visits and will be asked to respond to the criteria during the
interview. An additional application will not be required.
A CAP Review Team comprised of representatives of the Oakland County Community
Development, Planning and Economic Development staffs 'viii review the site visit field
notes/documentation, assign points, determine whether the minimum 180 point threshold has
been met, and rank order the communities. The details of the review process will be
developed in the near future; a community appeal process will be established.
The evaluation criteria are organized into 5 broad categories with specific performance
measures noted under each. The 5 categories are:
o Potential for Economic and Physical Revitalization
o Community Need
o Availability of Additional Financial Resources
o Community's Capacity to Implement Program
o Community's Commitment to Business District Revitalization
These criteria include the community selection criteria previously approved in Miscellaneous
Resolution #83034, of February 24, 1983.
A maximum of 500 points will be awarded. A required minimum threshold of 180 points,
specified throughout the 5 categories must be achieved for the community to attain their
initial CAP community eligiblity status.
Those communities achieving the highest number of points beyond the 180 point minimum
threshold will be designated as CAP target communities, up to a maximum of eight (8'). 85%
of CAP funds will be allocated to commercial rehab projects in the business districts of the
communities selected for the Commercial Assistance Program.
D-1
TOTAL 500 180
CAP COMMUNITY SELECTION CRITERIA
Maximum # Minimum #
of Points of Points
Available Required
. Potential for Economic/Physical Revitalization
A. Geographic Targeting 20 5
B. Historic/Architectural Quality 20 —
C. Commercial Development Potential 60 30
100 35
CDBG Eligiblity/Cornrnunity Need
A. Benefit to Low/Moderate Income Persons 40 (40 -
B. Slum/Blight 40 one or the
other required)
80 40
ilL Availability of Additional Financial Resources
A. Local Government Sources 70 30
B. Private Sector Resources 30 5
100 35
IV. Community's Capacity to Implement CAP
A. General Program Administration 40 10
B. Design Review 25 5
C. Community Readiness 15 5
D. Private Sector Commitment 40 20
120 40
V. Community's Commitment to Business District
Revitalization
A. Existence of Plans/Policies 40 10
B. Comprehensiveness of Commercial
Revitalization Program 60 20
100 30
D-2
1. POTENTIAL FOR ECONOMIC/PHYSICAL REVITALIZATION
CAP target business districts should have sufficient strength and potential for
economic/physical revitalization. The program will be directed to those business districts
where the infusion of low interest rehab funds will help halt a cycle of decline and create
the momentum and economic climate for further private investment.
(100 points available; 35 required)
A. Geographic Considerations - In what geographic area does the community propose
to use the Commercial Assistance Program?
(20 points available, 5 points required)
1. A single target business district. Is this target area
o a downtown/"Main Street"/central business district; or (20 points)
o a commercial strip corridor; or (15 points)
o a neighborhood shopping center? (10 points)
2. Several target business districts with a priority ranking assigned to each.
(5 points)
B. Historical/Architectural Significance - Communities throughout the country
have chosen the preservation of historic and architecturally important buildings
as the cornerstone for successful business district revitalization plans.
(20 points available; 0 required)
Does the target business district have buildings and/or a district which are:
1. Listed in the National Register of Historic Places, the Michigan Register
of Historic Sites, or a local register established by ordinance under
Michigan law; or
(20 points)
2. Eligible for listing on the National or Michigan Registers (as determined by
the Michigan History Division/Secretary of State); or
(15 points)
3. Valued locally and worthy of preservation without necessarily having the
historical/architectural significance required for official designation; or
(10 points)
4. Marked or placqued as a historic building by a local historical society or
landmark commission?
(5 points)
D-3
I. POTENTIAL FOR ECONOMIC/PHYSICAL REVITALIZATION
C. Commercial Development Potential - CAP will be most effective if it is
"invested" in the business districts which possess some untapped potential for
increased economic activity.
(60 points available, any 30 points required)
1. Has a market study indicated a potential for expanded economic activity in
the business district (retail, housing, office, etc.)?
(0-5 points)
2. What level of private capital reinvestment has occurred in the proposed
CAP business district in the last three years (as a % of the assessed
valuation the CAP business district)?
(0-5 points)
3. To what degree have the new businesses locating in the business district in
the past 3-5 years flourished financially and attracted new customers.
(0-5 points)
4. Has the business district lost any major tenant in the past three years?
(0-5 points)
5. In the past 3-5 years, have any of the community's financial institutions
moved to the business district or reinvested in their own property there?
(0 or 5 points)
6. Is there a core of financially stable long term businesses which have
remained in the district and plan to stay?
(0-5 points)
7. Does the business district serve a growing area of the county (either
because of residential development or new employment centers)?
(0-5 points)
8. Are there any major institutional, recreational, cultural, educational,
entertainment or tourist centers which attract potential customers from
beyond the immediate market area?
(0-5 points)
9. Has there been any net increase in the number of housing units (new or
rehabed) in the business district or in the residential areas immediately
adjacent?
(0-5 points)
D-4
POTENTIAL FOR ECONOMIC/PHYSICAL REVITALIZATION
C. Commercial Development Potential (Continued)
10. What highway or road improvement projects are planned or expected which
are likely to benefit the proposed business district?
(0-5 points)
11. Has the local government relocated or expanded its operation in the
proposed business district?
(0 or 5 points)
12. What developers or major users have approached the community in the past
year regarding a substantive reinvestment in the business district?
(0-5 points)
IL CDBG ELIGIBLITY - COMMUNITY NEED
The area proposed for CAP must be eligible under the HUD Community Development Block
Grant regulations. At least one of the following CDBG eligibility criteria must be met.
(80 points available; 40 points required)
A. The beneficiaries/users of the business district proposed for CAP must meet the
county's minimum low/moderate income eligible population concentration
threshold of 38.46%; or
(0 or 40 points)
B. The business district proposed for CAP must be a slum or a blighted/ deteriorated
area or a deteriorating area as defined by state and local laws authorizing public
action for purposes of slum and blight prevention and elimination. (HUD has
ruled that it is not necessary for the area to be formally designated as an urban
renewal area or as blighted, but evidence supporting such a slumfb)ight
determination must be maintained in local files.)
(0 or 40 points)
Applicable State Laws (in order of strongest slum/blight language)
1. Public Act 344 (1945) - Blighted Area Rehabilitation Act
This Act (commonly referred to as the urban renewal statute) defines
blight and authorizes counties, cities, villages and townships to designate
blighted areas; adopt plans for their rehabilitation; acquire, rehabilitate,
clear, and dispose of real property; and utilize prescribed financing
techniques for the exercise of these powers.
"Blight" is defined as a portion of a municipality:
• developed or undeveloped
• improved or unimproved
Characterized by:
• obsolescence;
• physical deterioration of structures;
• improper division or arrangement of lots, ownership, streets and
other open spaces;
• mixed character and uses of structures; or
• any other characteristics which endanger the health, safety,
morals or general welfare of the municipality
D-6
2. Public Act 255 (1978) - Commercial Redevelopment Act
This Act (also known as the commercial tax abatement statute) authorizes
cities, villages and townships to establish commercial redevelopment
districts; defines commercial redevelopment districts as one or more
parcels of property which are obsolete, cleared, vacant, or damaged due to
fire, blight or a decline in commercial activity; and authorizes local
government units to provide owners/leasees of facilities in such districts
with an exemption from local ad valorem property taxes (for up to 12
years) when the facilities are constructed, replaced or restored, and when
such improvements increase commercial activity, create or retain jobs.
"Obsolete commercial property" is defined as commercial property, the
condition of which is impaired due to changes in design, construction,
technology, or improved production processes, or damage due to fire,
natural disaster or general neglect.
3. Public Act 197 (1975) - Downtown Development Authority Act
This Act authorizes cities, villages and towns'-lips to establish downtown
development authorities (DDA's) in order to correct and prevent
deterioration in downtown business districts and encourage historic
preservation; and to designate a DDA's boundaries as the area in the
downtown zoned and used principally for bus:ness. DDA's are granted
broad powers with regard to planning for the economic development of the
downtown business district. DDA's, with approval of the local governing
body, may levy an ad valorem property tax (not exceeding 2 mills) in the
downtown area, the proceeds from which are to be used only for the
authority's daily operations and management. The DDA is also authorized
to finance the costs of physical restoration or development of the
downtown business district through bond issues and tax increment
financing.
Referring to the blight characteristics noted in the three above referenced statues,
communities must prepare a "Statement of Findings of Blight" for the business
district(s) proposed for the Commercial Assistance Program. Suggested
documentation includes photographs and records of health/safety code violations, and
declining property values.
D-7
AVAILABILITY AND COMMITMENT OF ADDMONAL FINANCIAL RFSOURCES FOR
COMMERCIAL DISTRICT IMPROVEMENTS
Communities committed to revitalizing their business districts have successfully
marshalled both public and private financing for their improvement programs. What is
the community's 3 year track record in generating funds for public improvements and
private reinvestment in the target business district? What is currently underway?
What is planned?
(100 points available; 35 required)
A. Local Government Resources
(70 points available; any 30 required)
Does, has or will the local government:
1. Use CDBG or other local funds to inject an additional public subsidy into
CAP projects and effectively lower interest rates?
(0-10 points)
2. Use CDBG or other local funds for public improvements in the target
business district (such as, but not limited to, street paving/reconstruction,
underground utilities, sewers, lighting, parking, sidewalks, landscaping and
streetscape furnishings)?
(0-10 points)
3. Use CDBG or other local funds to provide property owners/tenants with
free/low cost architectural design assistance for rehab plans?
(0-10 points)
4. Use CDBG or other local funds to prepare a business district revitalization
plan, market study, facade improvement design guidelines or parking plan?
(0-10 points)
5. Use CDBG or other local public funds for professional staff to manage the
business district revitalization program?
(0-10 points)
6. Use the proceeds from a bond sale or the annual incremental tax revenue
generated by the creation of a tax increment finance authority (under
Public Act #450 - cities only) for such commercial redevelopment
activities as land acquisition; street construction; parking, etc?
(0-10 points)
7. Other local government efforts.
(0-10 points)
D-8
AVAILABILITY AND COMMITMENT OF ADDITIONAL FINANCIAL RESOURCES FOR
COMMERCIAL DISTRICT IMPROVEMENTS
B. Private Sector Resources
(30 points available; any 5 required)
1. Do, have or will the financial institutions provide low interest loans for
commercial rehab?
(0-10 points)
2. Have the business district property owners agreed to the 2 mill ad valorem
property tax available for the operation of a downtown development
authority (staff salaries, design assistance, etc.)?
(0-10 points)
I To what degree do the community's major employers/business interests
financially support the business district revitalization program?
(0-10 points)
IV. COMMUNITY'S CAPACITY TO IMPLEMENT CAP
(120 points available; 40 points required)
A. General Administration
(40 points available; 10 points required)
1. At their own expense, will the community (public or private sectors) make
available (or contract for) professional staff experienced in CDBG
regulations, rehab program operations, and public/private financing to help
with the on-going delivery and operation of CAP?
(0-10 points available; 5 points required)
2. Has the local government administered a local housing or commercial
rehab program in the past five (5) years?
(0-5 points)
3. How well has the local government performed in spending its CDBG funds
(FY 81 through FY 84)?
(0-15 points available; 5 points required)
4. Does the community have or plan to hire a professional manager to direct
the business district revitalization program?
(0-10 points)
B. Capability to Handle Rehab Project Design Review
(25 points available; 5 points required)
Does the community possess the internal staff capability (architect,
landscape architect, planner, urban designer, chamber or DDA staff) or
contract with a coordinating architect experienced in commercial rehab
design guidelines to review proposed CAP improvement schemes rehab
plans; or
(25 points)
2. Does the community have an existing design review procedure which can be
utilized for CAP projects, such as a local landmark commission or a DDA
design review committee; or
(15 points)
3. In the absence of either of the above, will the community establish some
sort of local design review procedure to review CAP projects?
(.5 points)
D-10
C. Community Readiness
(15 points available; any 5 required)
IV. COMMUNITY'S CAPACITY TO IMPLEMENT CAP
Has the community determined the level of interest in CAP - number of
projects, estimated rehab cost?
(0-5 points)
2. How did the community determine the level of potential interest in CAP?
(0-5 points)
3. How many commercial rehab projects in the target business district are
really "ready to go" this summer?
(0-5 points)
D. Private Sector Commitment to Commercial Revitalization
(40 points available; any 20 points required)
1. What business associations serve the target business district?
(0-5 points)
2. Does the downtown development authority utilize its 2 mill taxing
authority to support its operation?
(0-5 points)
3. In what way are the merchants/property owners involved in planning and
directing the community's commercial revitalization effort (including
preparation of the CAP proposal)?
(0-5 points)
4. What percent of the business district property owners are absentee?
(0-5 points)
5. What is the level of interest in CAP by target area
businesses/merchants/property owners as indicated by letters of support?
(0-5 points)
6. Is there a key private individual who will serve as the cheerleader and
"salesman" for CAP?
(0-5 points)
D-11
IV. COMMUNITY'S CAPACITY TO IMPLEMENT CAP
D. Private Sector Commitment to Commercial Revitalization (Continued)
7. In what ways are the local financial institutions and their staff involved in
the commercial revitalization program?
(0-5 points)
8. Does CAP have the support of local business associations as indicated by
letters of support?
(0-5 points)
V. COMMUNITY'S COMMITMENT TO BUSINESS DISTRICT REVITALIZATION
(100 points available; 30 required)
A. Existence of Commercial Revitalization Plans and Policies - The availability of
CAP loans provides communities with a financing tool to implement the business
district revitalization strategy approved/endorsed by the local governing body
and business groups. Has the community completed, or is it currently
developing:
1. A comprehensive business district revitalization plan, including policies for
commercial revitalization and recommendations for streetscape
improvements and storefront rehabilitation?
(40 points available; 10 pts required including 1/2 or 115, and 113)
(0-10 points)
2. A policy statement/strategy for commercial revitalization?
3. A facade improvement design plan or guidelines?
(0-5 points)
(0-5 points)
4. A business district market assessment study or retail recruitment strategy?
(0-5 points)
5. An overall economic development plan or strategy which includes
commercial redevelopment/revitalization policies?
(0-5 points)
6. Has the community included business district revitalization as a community
development priority in past/current CMG 3 year plans or annual
applications?
7. Other - (Describe)
(0-5 points)
D-13
(0-5 points)
V. COMMUNITY'S COMMITMENT TO BUSINESS DISTRICT REVITALIZATION
B. Comprehensiveness of Community's Business District Revitalization Program
(60 points available; any 20 required)
Commercial revitalization efforts are successful when the public/private sectors
choose a comprehensive/multi-faceted approach to overcome the problems of
physical deterioration and economic decline. Successful commercial
revitalization is characterized by a coordinated program, including:
• business district management (promotions, advertising, marketing,
special events, security and maintenance);
• cooperation among and commitment by public/private leaders;
• small business management assistance;
• economic restructuring through retail/developer recruitment and
leasing assistance;
• property rehabilitation and public streetscape improvements; and
• traffic/parking management
To achieve maximum results, CAP will be directed to comrnu,ities pursuing a
comprehensive plan of action for the economic and physical revitalization of
their business district.
To what degree does the commercial revitalization program address or include:
I. Business District Management
2. Public/Private Partnership
3. Small Business Assistance
4. Economic Restructuring
5. Property Rehab/Public Improvements
6. Traffic/Parking Management
(0-10 points)
(0-10 points)
(0-10 points)
(0-10 points)
(0-10 points)
(0-10 points)
D-14
ATTACHMENT E
INDIVIDUAL CAP PROJECT REVIEW CRITERIA
These criteria will be utilized to review commercial rehab projects in the business districts
of the communities which were not selected as CAP target communities. 15% of the
leveraged commercial rehab loan pool ($345,450) will be available for these projects.
Individual rehab projects will only be evaluated against other rehab projects from the same
community. All projects must be approved as credit worthy by Manufacturers National
Bank, and endorsed by the local governing body and the local private business/merchants
association. Rehab projects will comply with all applicable federal regulations.
Evaluation Criteria II of Points
1. Creation of additional employment opportunities 10
2. Elimination of blighting influence on the business district 10
3. jitilization of CAP to fill a vacant storefront or building 10
4. Significance of the rehab projects visual impact and strategic
location to the physical upgrading of the business district 10
5. Compatibility of the facade improvement design with the building's
architectural character and with adjacent storefronts 10
6. Retention of an existing merchant in the business district
through the!.r expansion into an adjacent building 10
7. Elimination or correction of building code violations. 10
8. Adaptive use of an architecturally or historically
significant building 10
9. Availability of other local financial resources to
supplement CAP funds 10
10. Utilization of CAP by a new property owner in the business
district
Total 100
10
CD12
E-1
day of Mar 19 85
ALLEN
Couniy Clerk/Register of Deeds
this 28t h
Resolution # 85107 March 28, 1985
Moved by Lanni supported by Hassberger the resolution be adopted.
AYES: Gosling, Hassberger, Hobart, R. Kuhn, S. Kuhn, Lanni, McConnell,
McDonald, McPherson, Moffitt, Moore, Nelson, Pernick, Price, Rewold, Skarritt,
Webb, Wilcox, Aaron, Caddell, Calandro, Doyen, Fortino. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution # 85107 adopted by the Oakland County Board of Commissioners
at their meeting held on March 28, 1985
with the orginial record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan