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TARGETED RETAIL ACTIVATION - WATERFRONT RESTAURANT PROGRAM SPECIFIC REQUIREMENTS

In an effort to activate the Riverfront, celebrate the beauty of our National Heritage River, and capitalize on the City’s investment in the Riverwalk, signature riverfront parks, and public recreational docks, a Waterfront Restaurant Zone has been established within which three new incentives are available.

There are four program types of Waterfront restaurant incentive:
  1. Existing Riverfront buildings
  2. New Construction Riverfront Mixed Use Buildings
  3. New Construction Riverfront Free-standing restaurants
  4. Creekfront restaurants
In addition to the requirements above in Sections I-VII of this Retail Incentive Program, the following program specific requirements shall apply:
  1. Waterfront Restaurant Zone
    The Waterfront Restaurant Zone runs from the Fuller Warren Bridge to the eastern boundary of the Sports and Entertainment District on the Northbank and from the Fuller Warren Bridge to the Northeast Park at Rivers Edge on the Southside and along the banks of McCoy’s and Hogan’s Creeks within Downtown. The zone includes privately owned submerged lands where they exist, and the first parcel upland of the bulkhead/top of bank and/or Riverwalk and the property must be directly accessible from the Riverwalk or creek-side public trail. To qualify as within the zone, the waterfront restaurant must be located over water or upland with no intervening development between the restaurant and the Riverwalk or public Creekside trail. The restaurant must have a direct view of the water, direct access to the Riverwalk (in the case of the Southside a bridge to the Riverwalk may be required) or creek side public trail and outdoor service on the waterfront is highly desired.
     
  2. Existing Riverfront Buildings
    1. Qualifying Establishments:
      Only Type 1 restaurants with a minimum of 3,000 square feet of enclosed indoor space will qualify. Type 1 is generally, full service (i.e., wait staff, table bussers), full menu, full kitchen, non-disposable serve-ware. Must be open a minimum of five days per week for dinner until at least 9 p.m.

      The below table provides various classifications of establishments and the most likely type from the descriptions above. The DIA has the discretion to determine the type of establishment if it is not listed here or it is not clearly defined.
      Establishment Type
      Fine Dining Restaurant 1
      Food Hall (not less than 6 restauant bays) 1
      Contemporary Casual Restaurant 1 or 2
      Casual/Family Style Restaurant 1 or 2
       
  3. Grant Funding
    Improvement Incentive Amounts
    Funding under the Existing Riverfront Building program will be determined by the Type of establishment and limited to 50% of eligible costs, as outlined under the FAB- REP program in sections X(d) and X(e)(2)(e), respectively.
Establishment Type Price per Square Foot Cap of Eligibile Costs
Type 1: $75/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $500,000
Type 2: $65/Sq.Ft./Rooftop 50% of eligible costs, not to exceed $400,000
 
Direct Boater Access Boost
For qualifying restaurants where a dock with public boater access exists on the parcel, or where the owner has provided the City with an appropriate upland interest and permission to seek a submerged lands lease and construct a public access dock in front of the property, applicant can receive an additional $10 per square foot boost to the grant award (still subject to cap).
  1. General Program Requirements
    The General Program Requirements for FABREP contained in Section X(e)(1) Applicants and X (e)(2)(c) Grant Funding - Type of Funding and X(e)(2)(e). Grant Funding-Eligible and Ineligible Improvements shall apply to this program.
     
  2. Recipient Eligibility
    • Establishment must be open not less than 5 days per week which must include dinner/evening hours, staying open at least until 9:00 pm, including both Friday and Saturday evening
      • DIA will have the authority to modify the required hours of operation in the event market conditions require same.
    • Ground floor spaces that meet the requirements of the Waterfront Restaurant zone are eligible. Situations where the upper floor space is related to the operations on the first floor and adds to the riverfront activation may be considered as supplemental space on a case-by-case basis.
    • Upper floor only spaces may be eligible if open rooftop, entirely open balcony or deck where service is visible from Riverfront ground level and access from Riverwalk level is provided via stairs or elevator accessible from the Riverwalk.
    • Supplemental space including outdoor seating areas, meeting space, banquet halls, and similar areas should not be included in the calculation of eligible square feet. DIA may award an incentive for supplemental space at a reduced rate per square foot depending on the anticipated use and level of finish which must be separately identifiable in the construction budget presented at the time of application.
    • Applicant must provide a copy of a fully negotiated lease agreement with at least 3- year term operating during the entirety of the compliance period.
    • The scoring rubric found in the existing Retail Enhancement Program will be utilized in scoring applications.
       
  1. New Construction Riverfront Mixed-Use Buildings
    1. Qualifying Establishments
      Only Type 1 restaurants with a minimum of 3,000 square feet of enclosed indoor space will qualify. Type 1 is generally, full service (i.e. wait staff, table bussers), full menu, full kitchen, non-disposable serve-ware. Must be open a minimum of five days per week for dinner until at least 9 p.m.

      The below table provides various classifications of establishments and the most likely type from the descriptions above. The DIA has the discretion to determine the type of establishment if it is not listed here or it is not clearly defined.
Establishment  Type
Fine Dining Restaurant 1
Food Hall (not less than 6 restaurant bays) 1
Contemporary Casual Restaurant 1 or 2
Casual/Fanily Style Restaurant 1 or 2
 
  1. Grant Funding
    Improvement Incentive Amounts: Funding under the New Construction Riverfront Mixed-Use Building program will be determined by the Type of establishment and limited to 50% of eligible costs, as outlined under the FAB- REP program in sections X(d) and X(e)(2)(e), respectively. 
    Establishment Type Price per Square Foot Cap of Eligible Costs
    Type 1: $100/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $500,000
    Type 2:  $75/Sq.Ft./Rooftop 50% of eligible costs, not to exceed $400,000
Direct Boater Access Boost
For qualifying restaurants where a dock with public boater access exists on the parcel, or where the owner has provided the City with an appropriate upland interest and permission to seek a submerged lands lease and construct a public access dock in front of the property, applicant can receive an additional $10 per square foot boost to the grant award (still subject to cap).
  1. Applicants: The applicant for New Construction Riverfront Mixed-use Buildings may be the owner of the property who is developing the new mixed-use building. A tenant operator need not be identified at the time of application and notwithstanding any other program requirements generally applicable to FAB-REP or Waterfront Restaurant Incentive programs the following provisions shall supersede and control:
    1. The grant shall be paid upon completion of the restaurant construction and delivery of a fully executed lease with a tenant operator of a qualifying Type 1 restaurant provided such lease requires completion of all remaining tenant improvements and opening for business within 120 days of execution. If the time for completion and opening is longer than 120 days, the grant shall be payable upon opening of the restaurant.
    2. Restaurant construction cost shall not include the cost of associated parking, if any, nor real estate taxes.
    3. The forgivable loan term shall be 5 years and shall be forgiven 20% per year so long as the restaurant space is occupied with a qualified Type 1 restaurant that operates for a minimum of 8 hours per day, 5 days per week, as described below, and remains in operation throughout the year except in the event of operator turnover.
    4. In the event of operator turnover, a closure of not more than 60 days will be allowed without loss of loan forgiveness for that year. Any amount not forgiven by the fifth anniversary shall be due and payable on that fifth anniversary date.
    5. If restaurant is located in a mixed-use building for which any incentive is provided for the primary use (such as a multi-family REV grant), only construction costs beyond cold dark shell, which may include increased podium, venting, access, elevator, enlarged patio, grease trap, commercial grade systems, capital expenditures related to tenant improvements, and associated soft costs, will be used to determine total construction cost.
       
  2. General Program Requirements
    The General Program Requirements for FABREP contained in Section X (e)(2)(c) Grant Funding-Type of Funding and X(e)(2)(e) Grant Funding-Eligible and Ineligible Improvements shall apply to this program.
     
  3. Eligibility
    1. Qualifying restaurants must be open not less than 5 days per week which must include dinner/ evening hours: staying open at least until 9:00 pm, including both Friday and Saturday evening
    2. DIA will have the authority to modify the required hours of operation in the event market conditions require same.
    3. Ground floor spaces that meet the requirements of the Waterfront Restaurant zone are eligible. Situations where the upper floor space is related to the operations on the first floor and adds to the riverfront activation may be considered as supplemental space on a case-by-case basis.
    4. Upper floor only spaces may be eligible if open rooftop, entirely open balcony or deck where service is visible from Riverfront ground level and access from Riverwalk level is provided via stairs or elevator accessible from the Riverwalk.
    5. Supplemental space including outdoor seating areas, meeting space, banquet halls, and similar areas should not be included in the calculation of eligible square feet. DIA may award an incentive for supplemental space at a reduced rate per square foot depending on the anticipated use and level of finish which must be separately identifiable in the construction budget presented at the time of application.
    6. Applicant must provide a copy of a fully negotiated lease agreement with at least 3- year term operating during the entirety of the compliance period.
       
  1. New Construction Riverfront Free-Standing Restaurant
    1. Location
      Only free-standing restaurants located on unique parcels not otherwise suitable for a denser use, restaurants constructed over submerged lands, and free-standing restaurants located on other upland sites within the Waterfront Restaurant Zone which in the discretion of DIA have been determined that a free- standing restaurant is the highest and best use of the parcel will be eligible.
    2. Qualifying Establishments
      The Type of establishment will determine the appropriate incentive level.
      1. Type 1: Generally, full service (i.e. wait staff, table bussers), full menu, full kitchen, non-disposable serve-ware. Must be open a minimum of five days per week for dinner until at least 9 p.m.
      2. Type 2: Generally, limited service; order at the counter, self-clearing of tables, partial or full kitchen, buffet line, with on-site preparation and consumption of food. Must be open a minimum of five days per week for either breakfast (by 7:00 a.m.) or dinner/evening hours (until at least 9:00 p.m.).
      3. Type 3: Generally, no kitchen or minimal kitchen, counter service only, limited menu or beverage only. Must be open a minimum of five days per week for either breakfast (by 7:00 a.m.) or dinner/evening hours (until at least 9:00 p.m.)
      4. All Types must be open Friday and Saturday evening or Saturday and Sunday daytime.
      5. The below table provides various classifications of establishments and the most likely type from the descriptions above. The DIA has the discretion to determine the type of establishment if it is not listed here or it is not clearly defined.
The following table provides various classifications of establishments and the most likely type from the descriptions above. The DIA has the discretion to determine the type of establishment if it is not listed here or it is not clearly defined.
Establishment Type
Fine Dining Restaurant 1
Food Hall (Not less than 6 restaurant bays) 1
Contemporary Casual Restaurant 1 or 2
Casual/Family Style Restaurant 1 or 2
Fast Casual Restaurant 2
Multi-Vendor Food Hall 2
Coffee Shop 2
Pastry Shop/Bakery 2
Craft Brewery Tap Room 2
Craft Distillery Tasting Room 2
Fast Food Restaurant 2 or 3
Cafe or Deli Restaurant 2 or 3
Pizza Parlor 2 or 3
Ice Cream Shop 3
Bar/Lounge 3
 
  1. Grant Funding
    Improvement Incentive Amounts
    Funding under the New Construction Riverfront Free-standing Restaurant program will be determined by the Type of establishment and limited to 50% of eligible costs, as outlined under the FAB- REP program in sections X(d) and X(e)(2)(e), respectively. Notwithstanding the foregoing, eligible costs of a free-standing building shall include all construction hard costs of that free-standing restaurant building.
Establishment Type Price per Square Foot Cap of Eligible Costs
Type 1: $100/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $750,000
Type 1: $75/Sq. Ft./Rooftop 50% of eligible costs, not to exceed $500,000
Type 2: $50/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $250,000
Type 3: $40/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $100,000
Type 3 bar/ lounge only: $50/Sq. Ft./Rooftop 50% of eligible costs, not to exceed $350,000
 
Direct Boater Access Boost
For qualifying restaurants where a dock with public boater access exists on the parcel, or where the owner has provided the City with an appropriate upland interest and permission to seek a submerged lands lease and construct a public access dock in front of the property, applicant can receive an additional $10 per square foot boost to the grant award (still subject to cap).
  1. Applicants
    The applicant for a New Construction Free-standing Restaurant may be the owner of the property who is developing the restaurant building. A tenant operator need not be identified at the time of application and notwithstanding any other program requirements generally applicable to FAB-REP or Waterfront Restaurant Incentive programs the following provisions shall supersede and control:
    1. The grant shall be paid upon completion of the restaurant construction and delivery of a fully executed lease with a tenant operator of a qualifying Type 1,2 or 3 restaurant provided such lease requires completion of all remaining tenant improvements and opening for business within 120 days of execution. If the time for completion and opening is longer than 120 days, the grant shall be payable upon opening of the restaurant.
    2. Restaurant construction cost shall not include the cost of associated parking, if any, nor real estate taxes.
    3. The forgivable loan term shall be 5 years and shall be forgiven 20% per year so long as the restaurant space is occupied with a qualified Type 1 restaurant that operates for a minimum of 8 hours per day, 5 days per week, as described below, and remains in operation throughout the year except in the event of operator turnover.
    4. In the event of operator turnover, a closure of not more than 60 days will be allowed without loss of loan forgiveness for that year. Any amount not forgiven by the fifth anniversary shall be due and payable on that fifth anniversary date.
    5. A separate tax parcel must be created for the restaurant and total construction cost less the cost of parking and taxes will be used.
       
  2. General Program Requirements
    The General Program Requirements for FAB-REP contained in Section X (e)(2) (c) Grant Funding-Type of Funding and X (e)(2)(e). Grant Funding-Eligible and Ineligible Improvements shall apply to this program.
     
  3. Eligibility
    1. Qualifying restaurants must be open not less than 5 days per week which must include dinner/evening hours: staying open at least until 9:00 pm, including both Friday and Saturday evening
      • DIA will have the authority to modify the required hours of operation in the event market conditions require same.
    2. Ground floor spaces that meet the requirements of the Waterfront Restaurant zone are eligible. Situations where the upper floor space is related to the operations on the first floor and adds to the riverfront activation may be considered as supplemental space on a case-by-case basis.
    3. Upper floor only spaces may be eligible if open rooftop, entirely open balcony or deck where service is visible from Riverfront ground level and access from Riverwalk level is provided via stairs or elevator accessible from the Riverwalk.
    4. Supplemental space including outdoor seating areas, meeting space, banquet halls, and similar areas should not be included in the calculation of eligible square feet. DIA may award an incentive for supplemental space at a reduced rate per square foot depending on the anticipated use and level of finish which must be separately identifiable in the construction budget presented at the time of application.
    5. Applicant must provide a copy of a fully negotiated lease agreement with at least 3- year term operating during the entirety of the compliance period.
       
  1. New Construction Riverfront Free-Standing Restaurant
    1. Creekfront Program
      Restaurants that meet the Waterfront Restaurant Zone criteria for a creekfront restaurant whether in an existing building, a new construction creekfront mixed use building, or a new construction creekfront free- standing restaurant building will be eligible for incentive consideration.
       
    2. Existing Creekfront Buildings
      Creekfront restaurants within existing buildings that meet the Creekfront Waterfront Zone criteria shall be eligible for the FABREP program as applied in the two designated FABREP districts and all applicable terms of Section X above shall apply except the limitation on location to the designated FABREP Districts.
       
    3. New Construction Creekfront Mixed-Use Buildings
      Restaurants within New Construction Creekfront Mixed-Use Buildings shall be eligible for incentives following the same guidelines as applicable to New Construction Riverfront Mixed-Use Buildings except that the applicable grant amount will be established in accordance with the table below.

      Funding under the New Construction Creekfront Mixed-Use Building program will be determined by the Type of establishment and limited to 50% of eligible costs, as outlined under the FAB- REP program in sections X(d) and X(e)(2)(e), respectively. Only Type 1 establishments are eligible.
Establishment Type Price per Square Foot Cap of Eligible Costs
Type 1: $75/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $500,000
Type 1: $50/Sq. Ft./Rooftop 50% of eligible costs, not to exceed $300,000





 
  1. New Construction Free-Standing Creekfront Restaurants
    New Construction Creekfront Free-standing Restaurants shall be eligible for incentives following the same guidelines as applicable to New Construction Free-standing Riverfront Restaurants except that the applicable grant amount will be established in accordance with the table on the following page.

    Funding under the New Construction Riverfront Free-standing Restaurant program will be determined by the Type of establishment and limited to 50% of eligible costs, as outlined under the FAB- REP program in sections X(d) and X(e)(2)(e), respectively. Notwithstanding the foregoing, eligible costs of a free-standing building shall include all construction hard costs of that free-standing restaurant building.
Establishment Type Price per Square Foot Cap of Eligible Costs
Type 1: $75/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $750,000
Type 1: $50/Sq. Ft./Rooftop 50% of eligible costs, not to exceed $500,000
Type 2: $50/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $250,000
Type 3: $40/Sq. Ft./Ground Floor 50% of eligible costs, not to exceed $100,000
Type 3 bar/lounge only: $50/Sq. Ft./Rooftop 50% of eligible costs, not to exceed $250,000
 
 


Program Documents

Program Guidelines
Waterfront Restaurant Boundary Map


Contact

Steven T. Kelley, DBA
Director of Downtown Real Estate and Development
DIAPrograms@coj.net
904-255-5304