Fresno Municipal Code Art. 3 Revenue Bonds—historical Rehabilitation Financing Program

This article may be cited as the City of Fresno Historical Rehabilitation Financing Program.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The Council hereby finds and declares that it is necessary, essential, a public purpose and a municipal affair for the city to be authorized to provide financing for the rehabilitation of properties of historic, cultural or architectural significance. Unless the city provides loans for the rehabilitation of such properties, many of them will continue to deteriorate at an accelerated rate because loans from private sources are either not sufficiently available or at appropriate interest rates for their rehabilitation. It is the policy of the city to encourage the preservation, protection, restoration and rehabilitation of the historic, cultural, and architectural resources of the areas of the city duly identified as historical rehabilitation areas through the use of rehabilitation loans.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

(a) Unless the particular provision or the context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning and application of words and phrases used in this article, and, except to the extent that a particular word or phrase is otherwise specifically defined in this section, the definitions and provisions contained in Chapter 1, Article 2, and Chapter 8, Division 2, Article 1 of this Code shall also govern the construction, meaning and application of words and phrases used in this article unless the particular provisions or the context otherwise requires. The definition of each word or phrase shall constitute, to the extent applicable, the definition of each word or phrase which is derivative from it, or from which it is a derivative, as the case may be.

(b) "Financing" means the lending of money for the purpose of rehabilitation of historical properties and includes refinancing of outstanding indebtedness of the participating party with respect to property which is subject to historical rehabilitation or the purchase of historical properties rehabilitated by the Redevelopment Agency of the city.

(c) "Historical property" means property designated as an historic structure pursuant to Chapter 12 of this Code or property listed in the National Register of Historic Places. Historical property is a facility within the meaning of Article 1 of this division.

(d) "Historical rehabilitation" means the reconstruction, restoration, renovation or repair of the interiors or exteriors of historical properties or their relocation for the purposes of restoring or preserving their historical or architectural authenticity, preventing their deterioration or destruction, continuing their use, providing for their feasible reuse, or providing for the safety of the occupants or passersby. "Historical rehabilitation" includes but is not limited to the repairing of architectural facades or ornamentation; removal of inappropriate additions or materials; replacement of facades, ornamentation or architectural elements previously removed, repairing of roofs, foundations and other essential structural elements; or any work done on a historical property in order to comply with rehabilitation standards. "Historical rehabilitation" does not include the purchase, installation or restoration of furnishings.

(e) "Participating party" means a person who, pursuant to the provisions of this article, undertakes the financing of the rehabilitation of historical property within the city. Participating party is a company within the meaning of Article 1 of this division.

(f) "Rehabilitation standards" means the applicable local or state standards for the rehabilitation of historical properties, including any higher standards adopted by the city as part of the program, including standards established pursuant to Health and Safety Code Sections 18950 to 18961, as amended.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city may make, purchase or otherwise contract for the making of a mortgage or other secured or unsecured loan upon such terms and conditions as the city shall deem proper to any participating party for the financing of the cost of historic rehabilitation of historical property.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city may make, purchase or otherwise contract for the making of a mortgage or other secured or unsecured loan, upon such terms and conditions as the city shall deem proper, to any participating party to refund or refinance outstanding obligations of such participating party incurred to finance the costs of historical rehabilitation or to finance the purchase of the property to be rehabilitated, including expenses incident to paying or otherwise discharging the obligations to be refunded or refinanced, whether such obligations were incurred prior to or after the enactment of this article, if the city finds that such refunding or refinancing is in the public interest and either alleviates a financial or operating hardship of such participating party or is necessary or appropriate in connection with other financing by the city for such participating party.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

Any historical property may be selected for financing pursuant to this article as follows:

(a) The Council shall by resolution describe such property, find and determine that such property meets one or more of the criteria set forth herein; the funds loaned for the financing of such property shall be used for the purpose of financing historical rehabilitation, and the financing of such property is economically feasible.

(b) Loans made to any participating party to provide financing for the purpose of historical rehabilitation may include all costs and expenses customarily included in a real property financing transaction, including, without limitation, direct construction costs including contractor's overhead and profit allowance, architectural and engineering fees and expenses, site surveys, legal and accounting fees, insurance premiums, real estate commissions, leasing commissions, development fees, construction period interest reserve, construction period repairs, maintenance and taxes, construction loan origination fee, permanent loan origination fee, market fees, feasibility costs, financial consultant's fees, construction loan commitment fees, permanent loan commitment fees, revenue bond issuance and underwriting expenses charged to the borrower, historical consultant fees, appraisal fees, interior design, organization expenses and marketing, advertising and promotional expenses.

(c) The historical rehabilitation of such property shall be constructed or completed subject to the rules and regulations of the city, as required by this chapter or contained in the project agreement and all applicable rehabilitation standards.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city hereby determines and declares that this article is adopted to provide a procedural means of facilitating the financing of historical rehabilitation, including facilities heretofore determined to be eligible for such financing and as to which inducement resolutions have heretofore been adopted.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city may, from time to time, issue bonds pursuant to the procedures set forth in Article 1 of this division for any of the purposes specified in Sections 8-2-304 and 8-2-305.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).