Four out of an original 20 proposed projects to improve downtown
may get an immediate influx of money from the city. Four more are
still in the running but need to present more information. The rest
are on hold or have been fulfilled elsewhere.
Four out of an original 20 proposed projects to improve downtown may get an immediate influx of money from the city. Four more are still in the running but need to present more information. The rest are on hold or have been fulfilled elsewhere.
The council is expected to decide at Wednesday’s meeting whether to accept staff recommendations for the four “quick hitters” or to make some other arrangement.
On the table is $3 million the Redevelopment Agency (City Council members) has reserved to encourage creative new or renewed projects that would fit the city’s downtown and general plans for retail and mixed use. Some of the $3 million is reserved for some Chamber of Commerce and Downtown Association subsidies but most is available to help appropriate projects.
The four projects differ in scope and idea.
• The Downtown Association, headed by Executive Director Dan Craig, asked for a $5,000 grant to pay consultant fees to help it form a business/property improvement district (BID/PBID). Staff recommends a yes vote when a plan for the BID/PBID is received. The request is a change from the MHDA’s original concept of asking the RDA for $10,000 to underwrite a marketing plan that would ultimately bring in more sales taxes. Part of sales taxes paid in Morgan Hill remain and help pay for police and fire protection, recreation services and administration.
• In a second request, Morgan Hill resident Sam Azar plans to add a second story to his building on the northeast corner of Monterey Road and East First Street. Azar has agreed to convert the ground floor to retail use and move the commercial space to the second floor along with four to eight residential units. The building now houses a realty office. He asks for a triple façade grant; staff recommends accepting his proposal if the groundfloor is converted to retail.
The Downtown Plan, based on nationally recognized experience, clearly prefers a shopping district that offers side by side retail and restaurants with few interruptions by commercial establishments.
Azar originally asked for $840,000 in financial assistance and a $120,000 infrastructure grant; the staff report does not suggest how much is still on the table.
• A complete renovation and rescue of the original (pre-Granada) downtown movie theater, at 17330 Monterey Road, next to Rosy’s at the Beach, is the subject of the third quick hitter application. Investor Dave Scoffone owns the structure, one of the last remaining unreinforced masonry buildings in Morgan Hill. The major structural work required will significantly add to any renovation cost – one reason the building has remained empty for so many years, according to Planning Commissioner and architect Charles Weston.
Staff recommends a five-year loan at 2 percent interest, with annual interest-only payments and a balloon payment, of up to $150,000 used for façade and building improvements. Tenant improvements to turn the building into a sports bar – to be called Sports Book – are included in the loan. Staff recommends releasing the loan funds only when the sports bar opens for business. The RDA has already approved a triple façade grant for the building.
• The fourth quick hitter is a triple façade grant of about $60,000 to Meduri Trust to upgrade the exterior of the Nob Hill Center on West Main Avenue.
A SECOND TIER
Staff has requested more information from a second tier of quick hitters. The Sherman House Association, headed by new Morgan Hill resident Manou Mobedshahi offered to sell the city the parking lot behind the Downtown Mall, the Granada Theater and the Votaw Building, between East First to East Second streets. Mobedshahi has closed escrow on the mall and the parking lot and is mulling over ideas, trying to find the best use for the property.
He also has taken a 30-year lease on The Granada, which is expected to be part of an overall project.
Associated Concrete at 130 E. Main St. asked for money to help move the business elsewhere, freeing up that prime space designated by the Downtown Plan as ideal for mixed-use residential.
Henken Enterprises has asked to be part of the grant/loan cycle but has yet to produce definite plans. They would like to work with the owners of several empty downtown sites and develop useful and appealing businesses.
The complete Council agenda is available at the City Clerk’s desk in City Hall and on line. City Council and/or the Redevelopment Agency meets at 7 p.m. most Wednesdays in City Hall Chambers, 17555 Peak Ave. Details: www.morgan-hill.ca.gov or 779-7271. Council meetings are broadcast live on cable access channel 17.
