The City of Novato will prioritize projects that are exterior in nature including but not limited to:

• Exterior façade upgrades
• Signage and lighting
• Windows, doors, and transparency improvements
• ADA accessibility upgrades
• Exterior painting and surface restoration
• Landscaping or frontage improvements
• Historic preservation elements

Permit fees are eligible to be reimbursed with grant funds.

All proposed projects must comply with City of Novato design standards to be eligible for participation in the program. The City may require additional or changed work by the applicant to align projects with these standards. To determine which standards apply, please contact the Planning Division at planning@novato.gov or visit novato.gov/planning.

• Ranch Systems: cornice, stucco repair and façade upgrades
• Copperfield's Books: demising wall
• Firehouse Subs: exterior paint
• Ito's White Tiger Karate: solar panel and upgrade
• Trek Winery: solar panels
• Village Restaurant: parking lot repair

Program funds are distributed as matching grant reimbursements. The City will consider and may award matching grants of up to 50% of the eligible costs actually expended by the applicant.

In the case where total project cost is under $10,000, the City will consider fully funding the project at the discretion of the Selection Review Panel.

Grant funds are paid only as a reimbursement and are paid only upon completion of construction and issuance of a certificate of occupancy. Prior to the disbursement of grant funds, the applicant must provide proof that the contractor has been paid in full and all program requirements of the Tenant Improvement Grant have been met. The City reserves the right to approve, partially fund or reject any application for funding at its sole discretion.

Funds are limited, and the program can end at any time. Priority may be given to underserved corridors, first time entrepreneurs or businesses facing financial barriers.

The following Program Requirements must be met in order for a project to be awarded:

1. Applicant properties must have no pending code violations;
2. All applicants who are not property owners must provide a letter from the property owner stating (1) their knowledge of the applicant’s intent to participate in the program and (2) their consent for the improvements to the property;
3. Businesses may not receive more than one Tenant Improvement Grant within a two-year period from the date of the previous award;
4. All projects must comply with City design standards and be approved by City staff. After the Tenant Improvement Grant application is submitted, no design changes can be made without prior approval of the appropriate review authority or City Staff if no land use review is required;
5. All contractors hired by grantees are required to be licensed contractors. The grantee (or their contractor) will also be required to show proof of minimum insurance requirements, including listing the City as an additional insured with certificates and endorsements in a form acceptable to the City;
6. Applicants must ensure that all required permits are obtained;
7. Grantees will be required to continuously maintain, at their expense, the improvements made as a result of their participation for the duration of their tenancy/ownership of the premises.

The standard procedures for the Tenant Improvement Grant are as follows:

Step 1: Apply

Submit an application that includes:

• City of Novato online application form
• A project description and budget with itemized costs
• A signed or draft construction contract with your chosen contractor
• Proof that your contractors are licensed to work in Novato
• Photos of your storefront or project area
• A plan for how you’ll maintain the improvements
• Proof of insurance (business and contractor insurance, including worker’s comp)

Step 2: Eligibility Check

City staff will review your application to make sure:

• All required documents are included
• The property is in an eligible area
• There are no unresolved code violations

After completing the Eligibility Check, City staff will reach out to you to confirm your eligibility, review your proposed improvements and budget, and support you in moving on to Step 3.

Step 3: Business Support

You’ll meet with a consultant from the Small Business Development Center (SBDC). They’ll help review your financials, strengthen your business plan, and explore additional funding options as necessary. If your business needs more preparation, you can continue working with SBDC before re-applying.

Step 4: Design Proposal

Submit a design proposal that includes:

• Drawings, materials, finishes, and colors
• Construction details and specifications
• Any information needed for required permits (permits are your responsibility)

Step 5: City Selection and Approval

• The City will review your complete application.
• City staff will convene a Selection Review Panel to evaluate your proposal.
• You’ll receive written notice of approval or denial, and will be notified of your maximum grant award amount.
• Once funds are allocated to your project, they are reserved for you.

Step 6: Design Review & Scope Finalization

• You’ll meet again with City staff to finalize the scope and budget.
• If your project requires planning approvals (such as Design Review or Use Permit), you or your contractor will need to apply for those permits.

Step 8: Start Construction

• You’ll sign your construction contract and authorize your contractor to begin within 30 days of approval.
• You are responsible for managing construction (not City staff).
• You and your contractor must pull all required permits before work begins.

Step 9: City Inspections

City staff may inspect your project while it’s in progress to ensure it follows the approved design and specifications.

Step 10: Completion & Reimbursement

• When the project is finished, submit proof of payment along with a payment request form.
• City staff will conduct a final inspection to confirm the work matches the approved design.
• Reimbursement checks will be issued within 60 days after final City sign-off.
• Proof of lien release from contractors must be provided before funds are disbursed.

Step 11: Ongoing Maintenance

You agree to maintain the improvements at your own expense for as long as you occupy or own the property.