City of Monrovia

NOTICE: Due to the popularity and success of these programs, all funding is now committed. As no additional funds are available at this time, no applications are currently being accepted. Nov. 10, 2008 Old Town Monrovia's Business Development Assistance Program A three-pronged plan to encourage and enable both new business attraction and existing business development in Monrovia's historic shopping, dining and entertainment district. For more information on these programs, or to begin participation, contact the Monrovia Redevelopment Agency at (626) 303-6606

1) Business Attraction

The Monrovia Redevelopment Agency is offering to pay up to $35,000 of an applicant's fees and charges associated with all City permits, inspections and other entitlement elements for new businesses locating in the Old Town district. To be eligible, businesses must meet a specific profile - or be materially similar to the characteristics of the desired profile.

The profiles:

• Boutique Bookstore - such as Book Soup, Vroman's
• Specialty Gourmet Food- such as Edible Arrangements, Sweet Factory, See's Candy
• Distinctive Apparel/Accessories - such as Urban Outfitters, Anthorpologie, Forever 21, H&M
• Retail Wine Store - such as Wine Styles
• Specialty Beauty and Cosmetics - such as Bath & Body Works, MAC Makeup, Aveda
• Specialty Housewares - such as Cost Plus World Market, Williams-Sonoma, Pier One
• Womens's Specialty Clothing - such as Victoria's Secret, Cacique, Mimi Maternity
• Specialty Stores- such as MAC Store-Apple Store
• Gaming Store - such as EB Games
• Wine bistro - such as Bodega's or AOC

In addition to meeting or matching the above profiles, an applicant for Business Attraction assistance will complete an application affirming the business's name/use, and provide a copy of an operation statement and a signed lease. The applicant will be responsible for meeting specific milestones, such as the submission of architectural renderings, elevations and site plans; obtaining necessary permits and entitlements; etc. The applicant will be responsible for paying for all tenant improvements, but the Agency will pay the applicant's City entitlement and permit fees up to $35,000.

2) Bounty Incentive

The Agency will pay $1,000 to a licensed real estate broker who can recruit a business for Old Town that matches the above profile list (either a leasehold interest or a fee interest). The broker must demonstrate client representation a bona fide involvement in the transaction.

3) Business Development

The Agency will provide loans and grants to be used for the development and strengthening of existing businesses in the Old Town district.

Businesses already in the district are eligible for a matching loan/grant. The Agency will loan 50% of the cost of a business's expansion or physical improvement in an amount not to exceed $25,000. That loan however, can be forgiven and turned into a grant if the business meets specific criteria.

For example: If the total cost of an applicant's proposal is $40,000, the Agency's participation would be $20,000, with the business required to provide the additional $20,000 needed to complete the project. The funds may be used for physical improvements (such as building facades or expansion), or furniture, fixtures and equipment. To convert the loan to a grant, the business must demonstrate that the investment has resulted in an increase in business activity and document a 20% adjusted growth over a five-year period. If this is achieved, the loan is forgiven - the rationale being that the loan has already been repaid through increased sales and/or property tax revenues resulting from the improvements. If the growth is not achieved, the principal amount is due 12 months following notification from the Agency that the conditions have not been satisfied. In the event that the business closes before the end of the five-year period, the loan amount plus 5% accrued interest will be immediately due. To secure payment, a security interest will be filed either on the real property or on the business inventory when the loan/grant is awarded.

Applications in all three of the above programs will be administered by several key City staff members designated as the Redevelopment/Economic Development Team - or R/ED Team - and made up of the Agency's Executive Director and Division Manager, the Agency's legal counsel, the City's Administrative Services Director and Director of Community Development, as well as representatives of Keyser Marston Associated, the City's financial consultants.