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ITEM 9.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 2/17/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Development Services / Planning Prepared by: Farhad Tavassoli, Senior Planner Staff Contact Information: Phone: 480-816-5139 Email: ftavassoli@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Relating to initiate the Fountain Hills Downtown Facade Improvement Program. Staff Summary (background) The Town of Fountain Hills is introducing a Downtown Façade Improvement Program to enhance the visual appeal and economic vitality of the district. With an initial budget of $50,000 annually from the Downtown Strategy Fund, the program offers matching reimbursement grants of up to $10,000 per property for exterior improvements such as painting, masonry repair, windows, doors, signage, lighting, and ADA upgrades. The initiative aims to create a more welcoming environment that reflects the Town’s desert character, supports small businesses, and encourages private investment. The program includes safeguards to ensure accountability and provide compliance with Arizona’s Gift Clause, such as a 50% private match, a five-year maintenance covenant, and a clawback provision. Applications will be accepted through May 2026, with selections announced in June and implementation beginning in July. Eligible applicants include property owners and long-term tenants in the Downtown District who meet specific criteria, including being current on Town fees and free of Town Code violations. Priority will be given to businesses that generate foot traffic and older buildings with deteriorating façades. Town staff will review the program annually to evaluate its success, identify challenges, and incorporate feedback from applicants. Key performance indicators include application volume, private-to-public investment ratios, visual improvements, and economic outcomes such as increased foot traffic and reduced vacancy rates. Additional details, including eligibility requirements, funding structure, and design guidelines, are provided in the attached document. Related Ordinance, Policy or Guiding Principle The purpose of the Downtown Facade Improvement program is consistent with the following previously-approved Resolutions: • Fountain Hills General Plan (2020) • Strategic Plan (2022) • Community Economic Development Strategy (2023) • Downtown Strategy (2024) Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval to initiate the Downtown Facade Improvement Program as presented. Suggested Motion Move to approve initiation of the Downtown Facade Improvement Program. FISCAL IMPACT Fiscal Impact: Up to $50,000 per year. Budget Reference: FY2026 and future years. Funding Source: Dowtown Strategy Fund (current fund balance of over $700,000) ATTACHMENTS 1. Final-Draft-Facade_Improvement_Program