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These guidelines apply to all projects seeking reimbursement and under the Covered Walkway and Façade Improvement Program.  Requests for exceptions must be made in writing.

Physical Location

1. Projects must be within the designated project area (see Map)
2. The project must be the construction or restoration or repair of a covered walkway or a building facade adjacent to a public street (the Primary facade), a building face at the rear of a building that is within 30 ft. of a right of way or within 100 ft. of a public open space including private plazas and courtyards that are accessible to the general public. Other building faces may qualify if they are contiguous to the primary facade. Contact City of Scottsdale records office to verify right-of way location. (480-312-2500)
3. In cases where the covered walkways are within the public right-of-way and an encroachment easement with the City does not exist, then the property owner will obtain an encroachment easement before payment of matching funds can be made. Contact Robin Rodgers (480-312-2522) to obtain an encroachment agreement.
4. Projects may include the covered walkways attached to eligible buildings and the principal street facade of the building. A covered walkway eligible under this program must be open to the public and within a public street or it must be adjacent and parallel to a public street.
5. No interior work except as necessary to complete exterior work is eligible.
6. Participants must take before and after pictures of the area to be renovated. The pictures must be in a format that is reproducible.

Program Timeframe

The program will end on June 27, 2008 at 5:00 p.m. local time or whenever all funds have been committed and expended, whichever occurs first. Costs incurred after June 27, 2008, will not be eligible for reimbursement.

Reimbursement Only

The program is established as a reimbursement only program. Reimbursement will be on a dollar for dollar (1:1 ratio) of qualified expenditures subject to the limitations of these guidelines.

1. The City will initially commit reimbursement funds for six months. The City may withdraw its commitment if the project has not begun construction or plans have not been completely reviewed and approved within six months of the approval of eligibility. The purpose of this limitation is to avoid funds being tied up for extended periods with no activity when other eligible projects could have been undertaken.
2. In order to be reimbursed, the business or property owner must have obtained a written bid for the completed work. The bid is required to be obtained prior to any construction or other improvements being started. Bids must be by licensed contractors if the City of Scottsdale requires licensed professionals to do the work.
3. In cases where the project is eligible for a Downtown Fee Reduction or other City waivers or rebates only the actual amount paid as part of the project may be included as a cost item.
4. Reimbursements will be made only after all project primary and subcontractors have stated in writing that all payments have been received. Lien releases obtained for financing purposes may be submitted. All City inspections must also have been finalized and either a permanent or in certain cases a temporary Certificate of Occupancy has been issued, if required. Evidence of an issuance of a Certificate of Occupancy, if needed, must be presented along with the final reimbursement request.

Match Amount

1. Projects are eligible for up to $10,000 of matching funds for the first 100 linear feet of frontage. For each additional front foot the project will be eligible for $100 of reimbursement. No property owner may be reimbursed more that $25,000 during any 12 month period for all participating properties they own in the designated program area.
2. Business owners or property owners must invest at least $2,500 of actual costs for facade or covered walkway improvements before being eligible for reimbursement. These expenses must be documented in writing. Documentation includes paid itemized invoices, itemized receipts or similar itemized payment records for all items included in the requested reimbursement amount.
3. The City will not reimburse for change orders over the original approved reimbursement amount, unless the change orders have been approved for reimbursement by the Business Services Manager in the Economic Vitality Department.

Income Tax

The City of Scottsdale has made no judgment and formed no opinion on the taxable nature of the matching fund payments from the City to the participant.

Participants are strongly advised to seek professional tax advice in determining the potential tax implications for themselves and their company when accepting the matching funds. Participants are required to fill out a W-9 tax form to receive the program reimbursement.

Request for Eligibility

The Eligibility Statement must be signed by the Building Owner or legal representative of the owner, even if the actual funding for the project comes from a tenant or tenants occupying the property.

Zoning and Design Guidelines

1. Any property that seeks eligibility must be occupied by a use or uses that conform to the property’s zoning and the business owner and employees must be properly licensed or otherwise meet all applicable regulatory requirements for the type of business occupying the site and any services provided.
2. All projects must go through the regular city review processes in order to be eligible for reimbursement.
3. Improvements must be done within the context of the design guidelines applicable to the Downtown area where the project is located.

Property Owner Agreement

The property owner must grant to the city a covenant to maintain and not remove or alter the covered walkway or facade that is constructed, restored or repaired pursuant to this program and to keep the walkway open to the public for a period of 10 years after construction is completed without the express written agreement of the City of Scottsdale. Lenders and tenants, if any, must also sign the covenant and the encroachment permit. The property owner must sign a statement indicating that no lender is in place. This agreement will be recorded and run with the title of the property. Property owners are obligated to notify lien holders and others as appropriate of this requirement. The owners may apply to the Economic Vitality Department for an exception to the agreement based on special circumstances.

Repair & Maintenance

The Property Owner will be responsible for regular repair and maintenance appropriate to the materials and improvements made. If the improvements are substantially altered, removed, changed or destroyed prior to the end of the ten year period the owner will repay the City in a lump sum amount one-tenth of the full reimbursement amount for each year remaining of the ten year commitment. Property Owner Must Sign – Only the Property Owner must sign the Eligibility Statement, Eligibility Requirements and Reimbursement Agreement. There must be at least one copy of each completed document that contains an original signature by the owner or their legally designated representative on file.

Examples of Eligible Items

Examples of qualified improvements:

1. Replacement and repairs of windows and doors on the qualifying façade of the building.
2. Addition of Patio space between the building façade and public right of way provided the patio is permanent. 
3. Improved lighting under the existing covered walkways.
4. Repairs to or replacement of brickwork, plaster, wood siding.
5. New signage as part of a renovation activity. May not exceed 25% of the reimbursement request.
6. Change of exterior lighting, additional lighting.
7. Painting as part of a larger renovation activity. Painting alone is not covered by this program.
8. Landscaping adjacent to façade or covered parkway must be incidental to larger project. Landscaping by itself does not qualify.
9. Demolition of existing improvements as part of a renovation project. Would include such things as removal of window coverings, shade structures, roll down security window coverings.

Examples on Ineligible Items

1. Alarm systems
2. Electrical work that involves more than providing service to the facade
3. All interior work unless it is essential to the safety of improvements to the building facade
4. Any items that are not allowed under City of Scottsdale code or ordinance
5. Items not associated with the facade such as parking areas, trash enclosures, landscaping not located directly adjacent to the facade.

Contacts

Harold Stewart
Business Services Manager
Economic Vitality Department
City of Scottsdale
4021 N. 75th Street, Suite 102
Scottsdale, AZ  85251