The San Jose
Redevelopment Agency Approves
First REAL Assistance Agreement
New Loan Program Encourages Rehabilitation of Downtown Buildings
San José, CA ---- The San
Jose Redevelopment Agency (SJRA) announced today that the
Redevelopment Agency Board has authorized the negotiation
and execution of the first Retail, Entertainment, and Arts
Loan (REAL) Assistance program agreement. The loan, which
includes $400,000 for tenant improvements and $50,000 as a
contingency, will be negotiated with Jacek and Ann Chin Rosicki
for rehabilitation of property located at 418 South Market
Street. The intent of the REAL Assistance Program is to provide
loans to building owners and tenants in San Jose’s Downtown
to rehabilitate buildings and encourage longer tenancies.
“The approval of the first loan agreement as part of the
REAL Assistance program is an exciting step in rehabilitating
smaller structures and parcels of land in the Downtown core,”
Susan Shick, Executive Director of the San Jose Redevelopment
Agency, said. “It allows for major improvements to be
made to buildings and vacancies to be filled on a long-term
basis.”
The creation of the Retail, Entertainment, and Arts Loan (REAL)
Assistance program was approved in June of this year by the
SJRA Board. It was designed to provide loans for tenant improvements,
permanent fixtures, and equipment for Downtown buildings in
order to accommodate tenants that would enhance the retail
environment and improve the stability and diversity of Downtown
retailers. Approved tenants will be of one of two categories,
either non-profit arts and cultural organizations, or retail
and entertainment uses. REAL Assistance is intended to fill
voids in Downtown San Jose’s current offerings of entertainment
and retail uses, which will serve to enhance the existing
streetscape and spur additional retail growth. The goal of
the program is to fill vacant storefronts, aid in the rehabilitation
of historic structures, to invigorate the Downtown by providing
building owners with financing to secure long-term leases
with credit-worthy tenants, and draw arts groups Downtown
and encourage them to stay permanently by removing the initial
hurdle of tenant improvements. It is these tenant investments
that often preclude a retail and/or an arts organization’s
tenancy in a desirable commercial location.
The REAL Assistance program offers a 0%-interest loan to a building
owner to make substantial interior improvements to existing
building(s) that would house an approved tenant committed
to a 10-year lease. If the tenant stays in the space for 10
years, the entire loan is forgiven. Existing tenants can qualify
for REAL Assistance if they are expanding into adjacent space
or moving to another eligible Downtown location. Loans are
expected to be in a variety of sizes depending upon tenant
need and space size, but could be as much as $1,500,000. Potential
tenants are reviewed and approved by a REAL Retail review
committee based on the eligibility criteria of the Program.
The committee is comprised of a Deputy Executive Director
of the Redevelopment Agency, the Executive Director of the
Downtown Association, the Director of the Office of Economic
Development, a Downtown Association Board member and a downtown
banker appointed by the Mayor.
“The REAL program was a big part of our decision to start
a business at this site,” Jacek Rosicki said. “The
incredible terms of the loan have allowed us to afford both
the equipment needed for the business and the rehabilitation
of the building itself. This program should be a major force
in getting more small businesses into Downtown San Jose.”
The Rosicki property at 418 S. Market Street consists of a
4,000 square foot unreinforced masonry building with a 2,000
square foot patio adjacent to it. The building will accommodate
the proposed Back Bar, a state of the art entertainment venue
that will feature a nightclub and a bar and will be able to
host a number of private/corporate parties for Convention
Center patrons. Back Bar will feature three distinct spaces:
an interior space including bar and a dance floor, an outdoor
covered area with pool tables and a bar, and an outdoor patio
area featuring a stage for live music, projection video, a
fireplace and lush landscaping.
Since the facility that will house Back Bar is an older building,
major investment is needed to meet modern building code standards
for seismic and structural soundness. The building was awarded
a URM (Unreinforced Masonry) grant in the amount of $40,550
and is currently receiving Façade Improvement Program
(FIP) grant funding in the amount of $99,000. Collectively,
these grants together with the $450,000 REAL assistance loan
will contribute a total of $589,550 towards the project costs.
The owners will be contributing an estimated $15,000 to match
the FIP grant, $290,326 to fund tenant improvements and $200,000
for marketing/advertisement, which would bring the total tenant
investment to $505,326.
The Back Bar will operated by E.Z. Nitelife, Inc., which is
owned Jacek Rosicki, Ann Chin Rosicki and Geoff Parrish. All
three partners of E.Z. Nitelife, Inc. have a proven track
record as thriving nightclub operators and a long-term history
of commitment to Downtown San Jose. History of their success
includes managing such venues as the Agenda Lounge (399 S.
First St, San Jose); Club Oasis (200 N. First St, San Jose);
Eleven Restaurant (11th St, San Francisco); and The Edge/Icon
Supper Club (260 California Ave, Palo Alto). It is anticipated
that this project will stimulate additional entertainment
uses in SoFA, an area designated as a Downtown entertainment
district.
For information regarding the REAL Assistance Program, please
contact Kinshasa Curl at the SJRA at 408.794.1000.
The San Jose Redevelopment Agency is dedicated to improving
the quality of life for all who live and work in San José.
Governed by the City Council, the SJRA facilitates and oversees
comprehensive programs for development to revitalize the City’s
Downtown, neighborhoods, and industrial areas.
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