Title
Community Development Block Grant Neighborhood Commercial Rehabilitation Program Loan Agreement (Ordinance S-47499)
Description
Request to authorize the City Manager, or his designee, to enter into a loan agreement with Sandhu Investments, LLC for up to $100,000 in Community Development Block Grant program funds for facade and site improvements through the Neighborhood Commercial Rehabilitation program for their tenant, Hotel Electric, LLC and to take all actions and execute all documents necessary to complete the loan. Further request authorization for the City Controller to disburse all funds associated with this agreement. The CDBG Program is funded by the U.S. Department of Housing and Urban Development; no General Funds are required.
Report
Summary
The Neighborhood Commercial Rehabilitation (NCR) program offers Community Development Block Grant (CDBG) funding for property owners to complete exterior improvements through a deferred loan, secured by a Deed of Trust which is forgiven over a period of up to 10 years. The program was approved by City Council through Ordinance S-46657 as part of the 2020-2024 CDBG Consolidated Plan. NCR projects are selected through an open application process.
Hotel Electric, LLC is an electrical company that has primarily served Phoenix's hospitality industry and multi-family residential developments since 1996; they employ 21 full-time and 10 seasonal employees at the project site for a total of 31 employees. The proposed exterior improvements include grading and drainage repairs, with the installation of a retainage bioswale, Americans with Disabilities Act (ADA) modifications, parking lot improvements, building facade and roof drainage renovations, and new signage. Hotel Electric, LLC is a tenant, therefore the deferred loan will be executed with the property owner, Sandhu Investments, LLC.
The goal of the NCR program is to support the revitalization or improvement of commercial buildings along targeted business corridors to ensure the long-term sustainability of the community, its businesses and structures. Eligible economic revitalization projects must provide a public benefit or deliver neighborhood enhancements including job creation for local residents, blight elimination, or the provision of qualified goods or services to residents of targeted, low- and moderate-income areas in Phoenix.
Financial Impact
The CDBG Program is funded by the U.S. Department of Housing and Urban Development; there is no impact to the General Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Land Use and Livability Subcommittee on March 17, 2020 by a unanimous vote.
Location
10402 N. 19th Ave. (North Mountain Redevelopment Area)
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Neighborhood Services Department.