HomeMy Public PortalAboutResolution No. 570-23 01-10-2023RESOLUTION NO. 570-23
A RESOLUTION ESTABLISHING AND APPROVING THE CITY OF
RICHLAND HILLS BUILDING IMPROVEMENTS GRANT PROGRAM
WHEREAS, the City Council of the City of Richland Hills, Texas (Council) desires
to implement a matching grant program to encourage the development, retention, or
expansion of business enterprises in the City; and
WHEREAS, Chapter 380 of the Texas Local Government Code authorizes
municipalities to establish and provide for the administration of programs that promote
economic development and stimulate business and commercial activity in the City; and
WHEREAS, the City Council on January 10, 2023, considered this resolution
approving a Building Improvements Grant Program Policy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHLAND HILLS, TEXAS, THAT:
The terms and conditions of the Policy, having been reviewed by the Council and
found to be acceptable and in the best interest of the City and its citizens and businesses,
are hereby approved.
SECTION 1.
INTRODUCTION & GOALS
This program is a matching grant program that reimburses commercial property
owners or business operators for Eligible Enhancements made to the Property. The
goals of this Policy are to:
1.1. Enhance the commercial viability and sustainability of commercial properties in the
City;
1.2. Improve the physical appearance of businesses and visibly enhance the City's
commercial corridors;
1.3. Aid in the retention and expansion of existing businesses;
1.4. Increase the taxable value of commercial properties in the City;
1.5. Enhance commercial areas through the placement of Public Art;
1.6. Increase the marketability and occupancy rate of commercial buildings hindered
by an outdated appearance;
1.7. Increase the safety of a commercial area and stimulate more public interaction; and
1.8. Provide incentives in areas and to businesses most likely to stimulate similar
enhancements by other private entities.
SECTION 2.
DEFINITIONS
The following definitions shall apply to the terms used in this Policy:
Agreement: A written performance agreement between the City of Richland Hills and the
Applicant.
Applicant: Shall mean the Property owner or business occupant signing the Application
for a Building Improvement Grant.
Application: Shall mean the Application for Building Improvement Grant program as
maintained by Staff.
Business: Shall mean the physical building in which a person's regular occupation,
profession, or trade is located at.
Building Improvement Grant: Shall mean the financial support to make designated
Property Enhancements as approved, and sometimes referred to as "Grant."
City: The City of Richland Hills, Texas.
City Council: The City Council of the City of Richland Hills.
Code Violations: Shall be any violation of the City's code of ordinances.
Construction Costs: The cost of permits, fees, construction materials, and installation
labor. All other associated costs are deemed excluded, including, but not limited to, the
following costs: design, construction document preparation, bidding, sweat equity and
construction financing.
Eligible Enhancements: Shall mean the Enhancernents identified as eligible in Section 4
herein.
Enhancements: Shall be as defined in Section 4 herein.
Facade: Shall mean the exterior of a building.
Notice to Proceed: A written notice authorizing the Applicant to begin construction as
approved.
Policy: Shall mean this Building Improvement Grant Policy.
Property: Shall mean the physical lot and / or building to which Enhancements are being
made.
Public Art: Shall mean sculptures, murals, architectural features and similar tangible
exhibits.
Staff: The City Manager or his/her designee.
SECTION 3.
ELIGIBILITY
The following Properties and Businesses are eligible to receive Grants.
3.1 Properties: Only properties meeting the following requirements at the time an
Application is submitted shall be eligible to receive Grants as outlined by this Policy:
3.1.1. Within the City: Property must be located within the City's municipal
boundaries.
3.1.2. Non -Residentially Zoned: Property must be zoned for uses other than
residential uses and the current use of the Property may not be residential.
Resolution No. 570-22, Page 2 of 11
3.1.3. Tax -Paying Entity: The Property must be subject to the City's Ad Valorem
property tax.
3.1.4. Financial Standing: Property shall be in good standing as it relates to taxes
or any monies due to the City.
3.1.5. City Liens: Property shall be in good standing as it relates to any liens held
by the City.
3.1.6. Ownership: Property owners must provide sufficient proof of ownership.
3.1.7. Code Violations: Property must not have any outstanding code violations.
3.1.8. Frequency: Property must not have received a Grant for any Enhancements
in previous twelve-month period.
3.2. Businesses: Only businesses meeting the following requirements at the time an
Application is submitted shall be eligible to receive Grants as outlined by this Policy:
3.2.1. Financial Standing: The business shall be in good standing as it relates to
taxes or any monies due to the City.
3.2.2. Tax -Paying Entity: Preference will be given to businesses that are tax -paying
entities.
3.2.3. Property Owner Approval: Businesses, if not the owner of the Property, must
provide a copy of their lease agreement and support of the Application from
the Property owner prior to approval of the Application.
3.2.4. Code Violations: Businesses must not have any outstanding code violations.
3.2.5. Frequency: Businesses must not have received a Grant for any
Enhancements in previous twelve-month period.
SECTION 4.
ENHANCEMENTS
4.1. Aspirations: As with any policy or regulation, it is difficult to precisely regulate
factors that are not easily defined. With that in mind, the following are to be
considered aspirations for contemplated Enhancements:
• Enhancements should be compatible with the character and architecture of
the individual building and those in proximity;
• Where appropriate, Enhancements may act as a catalyst to create a unique
environment;
• Enhancements should make the Property more inviting to the public; and
• Enhancements should be functional as well as visually appealing.
4.2. General Enhancement Eligibility: Property Enhancements shall be deemed as
eligible or ineligible for the benefits of this Policy as defined below. In general, the
following Enhancements, though not exclusively, are ineligible for all Grants:
• Any Enhancement that does not comply with existing ordinances of the City;
• Any Enhancements made prior to the Notice to Proceed;
• Sweat equity or "in -kind" services;
• New construction which is not specifically listed in this Policy as an Eligible
Enhancement;
• Any Enhancements to eliminate code violations of a Property or Business;
Resolution No. 570-22, Page 3 of 11
• Fees for designing, engineering, surveying, legal services, financing, etc.; or
• Any Enhancements not identified as eligible below. A potential applicant may
discuss an enhancement not identified below with City staff to ascertain
whether or not the enhancement meets the purpose and intent of this Policy. If
so, an amendment to this Policy may be placed before the City Council to
determine the merits of including a new eligible enhancement.
4.3. Facade Enhancements: The following are Eligible Enhancements except as noted
otherwise:
4.3.1. Facade Materials: Replacing deteriorated or unsafe facade materials with
brick, stone, tile, wood, or siding meeting the City's masonry requirements
and / or architectural standards. Removal of "slip" coverings of prior facade
materials and re-establishment of historic facade details. Repointing of
mortared joints, replacement or repair of damaged masonry.
4.3.2. Cleaning: Pressure washing or sand blasting existing facades, cleaning of
tiles.
4.3.3. Painting: Scraping, priming and otherwise preparing the surface and
painting of an existing building.
4.3.4. Window / Doors: Replacement of or improvements to existing windows or
doors that are visible from a public street. New windows and doors matching
replaced windows or doors.
4.3.5. Awnings / Canopies: Replacement of or improvements to existing awnings
or canopies. New awnings or canopies.
4.3.6. Historical Restoration: Restoration of architectural details of historic
significance and / or removal of elements covering such details.
4.3.7. Roof Repair: Replacement or repair of all or portions of the roof.
4.3.8. Gutters and Downspouts: Replacement or repair of existing gutters and / or
downspouts.
4.4. Landscaping: The following are Eligible Enhancements except as noted otherwise:
4.4.1. Edging: Providing a perimeter to shrub beds with materials deemed to be
of a long life, e.g. brick, stone, concrete, steel.
4.4.2. Shrubs and Trees: Shrubs and / or trees of a variety that are sustainable in
the area when combined with removal of existing shrubs and / or trees that
are either overgrown or of poor quality. Preference is given to xeriscape
approaches using drought -tolerant plant species.
4.4.3. Seasonal Color: Providing one-time planting of annual or perennial flowers
in critical areas adequate to provide an appealing impact.
4.4.4. Irrigation: Automatic irrigation system complying with all code requirements.
Preference is given to water conservation measures and approaches (e.g.
drip irrigation).
4.4.5. Lawn Renovation: Removal or re-establishment of an existing lawn with a
desirable type of lawn. (An automatic irrigation system is required with this
Enhancement.)
4.4.6. Fencing: Replacement of fencing or installation of new fencing that is
visually appealing and can be seen from public view.
Resolution No. 570-22, Page 4 of 11
4.4.7. Ineligible: Though not an all-inclusive list, the following are specifically not
eligible: landscape pruning, mowing and / or maintenance.
4.5. Lighting: The following are Eligible Enhancements:
4.5.1. Pedestrian: Lighting increases to pedestrian areas on or adjacent to the
Property, e.g. sidewalks, parking lots.
4.5.2. Accents: Lighting that accentuates exterior features of the building or
Property creating a pleasant ambience on the Property.
4.5.3. Signage: Lighting that illuminates signage identifying the business.
4.6. Parking / Driveways: The following are Eligible Enhancements except as noted
otherwise:
4.6.1. Reconstruction: Removal of existing pavement, gravel, curbing, drives,
accessibility ramps, etc. and replacement with new construction meeting
City requirements.
4.6.2. Resurfacing: Re -topping asphalt parking areas.
4.6.3. Restriping: Repainting of parking stall stripes and / or fire lane graphics
meeting the City's requirements.
4.6.4. Ineligible: Though not an all-inclusive list, the following are specifically not
eligible: Installation, repair or replacement of any surface that is not an all-
weather hard surface as required by the City's code of ordinances.
4.7. Pedestrian Amenities: The following are Eligible Enhancements:
4.7.1. Paving: Paving of a unique nature in areas that allow customers to
congregate.
4.7.2. Seating Areas: Provisions for seating in areas where customers may
congregate before, during or after supporting the business.
4.7.3. Shade: Provisions for shading pedestrian areas to include permanent or
temporary canopies, awnings, umbrellas or similar shade structures.
4.7.4. Music: Provisions for permanent installation of fixtures to accommodate
providing music in areas where customers congregate.
4.7.5. Trash Receptacles: Trash receptacles establishing or matching a design
theme utilized throughout the pedestrian areas.
4.8. Signage: The following are Eligible Enhancements. The replacement of signs that
do not conform to current City requirements is a priority for the City.
4.8.1. Replacing Signs: Replacing existing signs, with new signage that
complies with all City requirements.
4.9. Demolition: The costs of demolishing and removing existing structures on a
Property may be considered for Property Enhancements.
4.10. Public Art: Providing for the placement of Public Art on the Property.
Resolution No. 570-22, Page 5 of 11
SECTION 5.
GRANT PRIORITIES
The City has determined that the following are priorities for the benefits of this
Policy. The evaluation of the merits of any Application shall take into consideration
whether or not the Application also meets these priorities.
5.1. Preferred Areas: The following areas of the City are areas of priority for
implementation of this Policy:
5.1.1. Transportation Corridors including: Baker Boulevard, Boulevard 26,
Handley Ederville, Glenview Drive, Airport Freeway; and Burns Street
5.2. Preferred Businesses: The following types of businesses are a priority for
implementation of this Policy:
5.2.1. Retail;
5.2.2. Restaurants;
5.2.3. Professional Office;
5.2.4. Industrial and manufacturing; and
5.2.5. Any sales -tax generating business.
SECTION 6.
ADMINISTRATIVE PROCEDURES
Following are the Administrative Procedures regarding the Application for and
approval of Building Improvement Grants:
6.1. Participation Limitations: The potential matching Grant for each type of
Enhancement would be the lesser of the Maximum Percentage or Maximum Per
Enhancement Category Amount. The Applicant is responsible for the remaining
costs of the Enhancement and must complete the full Enhancement to be eligible
for the matching Grant.
6.1.1. Maximum Percentage: A Maximum Percentage of fifty percent (50%) shall
be the maximum percentage of the total cost of any Enhancement that the
City will grant the Applicant.
6.1.2. Maximum Per Enhancement Category: A Maximum Amount of five
thousand dollars ($5,000) is the maximum dollar amount to be granted for
any category of Enhancement.
6.1.3. Accumulative Maximum Grant: Notwithstanding the Maximum Percentage
and Maximum Per Enhancement Category limitations for each type of
Enhancement, no Property or Business may receive more than five
thousand dollars ($5,000) in matching Grants during one 12 -month period.
The following examples are provided to clarify different application
scenarios:
A. Example 1: Applicant desires to do $12,000 in eligible Landscape
Enhancements. By Policy, the maximum Grant allowed by the Max
Resolution No. 570-22, Page 6 of 11
Percentage (50%) would be $6,000, but the maximum Grant allowed by the
Max Per Category would be $5,000. The lesser of the two is $5,000 which
would be the maximum matching Grant for the $12,000 landscaping project.
Further, within a 12 -month period the Applicant cannot receive additional
grants for any Enhancements (per Section 4.13.3).
B. Example 2: Applicant desires to do $8,000 in eligible Landscape
Enhancements. By Policy, the maximum Grant allowed by the Max
Percentage (50%) would be $4,000, and the maximum Grant allowed by the
Max Per Category would be $5,000. The lesser of the two is $4,000 which
would be the maximum matching Grant for the $8,000 landscaping project.
Further, within a twelve-month period the Applicant cannot receive more
grants for Landscape Enhancements (per Section 3.1.8), but may apply and
receive a second matching Grant, not to exceed $1,000 ($5,000 max - $4,000
Grant) for any Enhancement category other than Landscaping.
6.2. Pre -Submittal: All Applicants are encouraged to meet with Staff prior to preparation
of an Application. Applicants should contact the following to set up a meeting.
Department of Development Services
3200 Diana Drive
Richland Hills, Texas 76118
(817) 616-3745
6.3. Application: The submittal of an Application is required prior to any evaluation of
the request for Building Improvement Grants. The Application shall be on a form
prepared by Staff and available on the City's website or at the location noted in 6.1.
6.3.1. Required Information: The following shall be included with the Application:
A. Proof of ownership of the Property;
B. Photographs of the existing Property;
C. Drawings, renderings, plans of the proposed Enhancements;
D. Written description of the Enhancements including building materials and color
schemes to be used;
E. Construction Cost estimate; and
F. Proof of Insurance
G. If Applicant is not the Property owner:
i. Written approval of the Application from the owner; and
ii. Copy of the signed lease agreement.
6.3.2. Amendments: Staff may amend the form of the Application as needed to
more efficiently evaluate the merits of requested Enhancements.
6.4. Review & Evaluation: Following are criteria to review and evaluate the Application:
6.4.1. Review Criteria:
A. Completeness of Application: Completeness of the Application; including all
required attachments.
B. Grant Priorities: Whether the Application includes a targeted business
Resolution No. 570-22, Page 7 of 11
classification or whether it is located in a targeted improvement area as defined
in Section 5.
C. Impact: An estimation of the impact that the Enhancements might have,
particularly as a catalyst for continued private investment.
D. Non -funded Improvements: Are the improvements associated with the Grant
part of a larger effort to enhance the Property.
E. Elimination of a Non -Conformity: Do the Enhancements eliminate a legal non-
conforming aspect of the Property.
6.4.2. Staff Evaluation and Recommendation: The coordinating Staff member
shall convene the DRC to evaluate the Application.
A. Site Visit: Prior to formal evaluation of the Application, the Applicant shall allow
Staff the opportunity to visit the Property to verify its status prior to any
Enhancements.
6.5. Approval: The DRC shall make the final decision regarding the merits of the
Application, if any, if funds are available as pre -approved by the Council for the
funding period. Upon approval of a matching Grant, the DRC shall enter into an
Agreement with the Applicant on a form acceptable to the City Attorney. The
Agreement, at a minimum, must contain the following:
6.5.1. Enhancements: List the specifications of the proposed Enhancements on
the Property.
6.5.2. Access: Provide the City and Staff access to the Property to ensure that the
Enhancements or repairs are made according to the specifications and
conditions in the Agreement.
6.5.3. Grant: Provide for the procedures of the matching Grant payment.
6.5.4. Recapture Provisions: Provide for the repayment of a Grant if the Applicant
or the condition of the Property do not fulfill all obligations required under
the Agreement. The City may take any remedy necessary to recover the
funds, including filing a lien on the Property.
6.6. Pre -Construction Meeting: If the matching Grant is approved as noted above, and if
deemed necessary by Staff, the Applicant must attend a pre -construction meeting
with Staff to coordinate any required permits, execute Grant documents, and
resolve any questions either party might have.
6.7. Notice to Proceed: Upon approval as noted above, Staff shall prepare and issue a
written Notice to Proceed authorizing the Applicant to begin work on the
Enhancements. The Notice to Proceed shall in no event be regarded as the
issuance or approval of a building permit or any other construction permits.
6.7.1. Required: All Grant documents, including the Agreement with the City, must
be executed and all required permits must be received prior to issuance of
the Notice to Proceed.
6.7.2. Beginning of Work: All work must begin within sixty (60) days of the issuance
of the Notice to Proceed.
6.7.3. Completion of Work: All work for approved projects must be complete within
ninety (90) days of the Notice to Proceed unless an Applicant's written
Resolution No. 570-22, Page 8 of 11
request for extension is granted in writing by the DRC.
6.8. Construction: All construction shall be in accordance with all requirements for
permitting and inspection by the City.
6.9. Verification: Upon completion and approval of the work by the City, Staff shall verify
that the work has been performed as authorized in the approval action.
6.9.1. Documentation: The Applicant shall provide Staff with documentation
necessary to determine the Construction Costs of the Enhancements as
approved, e.g. copies of paid contractor invoices, receipts or processed
checks. Construction Costs not supported by adequate documentation shall
not be eligible for reimbursement.
6.10. Payment: Upon verification of compliance with the approval action, Staff shall
cause a check to be issued to the Applicant in the approved amount.
6.10.1. Cost Overruns: Any costs above and beyond the amounts approved shall
be the responsibility of the Applicant.
6.10.2. Funding Source: Businesses located in Tax Investment Redevelopment
Zone (TIRZ) will receive their funds from the TIRZ Fund. Businesses outside
of the TIRZ zone will receive their funds from the Development Corporations
fund.
SECTION 7.
APPLICANT / OWNER CERTIFICATIONS
The Application shall include the following certifications which shall be affirmed by
the Applicant / Owner by signing the Application.
7.1. Application Accuracy: The information provided in the Application, and all that may
have been affixed thereto, is true and correct, and that the City may rely on all of
the information therein contained, and all that may have been affixed thereto, as
being true and correct.
7.2. Compliance: I (we) certify that I am (we are) solely responsible for all safety
conditions and compliance with all safety regulations, building codes, ordinance
and other applicable regulations. Neither approval of an Application nor payment
of a Grant upon completion of the project shall constitute approval of the project by
any City department or Staff or a waiver by the City of any safety regulation, building
code, ordinance or other applicable regulation.
7.3. Insurance: I (we) certify that I (we) maintain sufficient insurance coverage for
property damage and personal injury liability relating to the project.
7.4. Maintenance: I (we) certify that the Enhancements, once approved by the City shall
be maintained for a period of three (3) years from the date of payment. No changes
shall be made without prior written approval from the City.
Resolution No. 570-22, Page 9 of 11
7.5. Discretionary Rights: I (we) certify that I (we) acknowledge that the City has the
absolute right of discretion in deciding whether or not to approve a matching Grant
relative to the Application, whether or not such discretion is deemed arbitrary or
without basis in fact including the right to approve or disapprove a Grant on terms
and conditions that are contrary to the guidelines of this policy.
7.6. Policy Promotion: I (we) authorize the City to use an approved project to promote
the merits of this Policy, including but not limited to displaying a sign at the Property
or Business during and within thirty (30) days after construction, and using
photographs and descriptions of the project in distribution material, press releases,
social media and on the City's website.
7.7. Indemnification: I (we) certify that I am (we are) solely responsible for overseeing
the work, and will not seek to hold the City, the DRC, and / or their agents,
employees, officers, and / or directors liable for any property damage, personal
injury, or other loss related in any way to this Policy, and by submission of an
Application, agree to indemnify the City, the DRC, and / or their agents, employees,
officers, and / or directors from any claims or damages resulting from the project,
including reasonable attorney fees.
SECTION 8.
GENERAL PROVISIONS
8.1. Termination: The City has the right to terminate any agreement under this Policy
for any reason.
8.2. Changes During Construction: If an Applicant seeks to change the scope of their
project after a Grant has been approved, the Applicant shall meet with the DRC to
discuss the desired change. The DRC has the authorization to approve minor
modifications during construction. Any other desired modification shall be placed
before the city manager for reconsideration.
8.3. Flexibility: The terms and conditions of this Policy are a guideline for the Board
during their deliberation and evaluation. The City reserves the right to modify the
terms and conditions herein at any time, including for any pending application, and
may approve a Grant on terms and conditions contrary to the guidelines set forth
in this policy.
8.4. Section or Other Headings: Section or other headings contained in this Policy are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Policy.
8.5. Severability: In the event that any provision of this Policy is determined to be illegal,
invalid, or unenforceable, then, and in that event, it is the intention that the
remainder of this Policy shall not be affected thereby.
Resolution No. 570-22, Page 10 of 11
SECTION 9.
This Resolution shall become effective immediately upon its passage.
APPROVED AND ADOPTED at a regular meeting of the Richland Hills City
Council on January 10, 2023, by a vote of ` ayes, ' :} nays, and abstentions.
APPROVED:
E HONORABLE EDWA2D LOPZ, MAYOR
ATTEST:
INDSAY A LINSON, CITY SECRETARY
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Resolution No. 570-22, Page 11 of 11