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2011-27795 Reso RESOLUTION NO. 2011-27795 A RESOLUTION APPROVING THE FACADE IMPROVEMENT PROGRAM GUIDELINES FOR THE NORTH BEACH COMMERCIAL CORRIDOR LOCATED ON COLLINS AVENUE BETWEEN 73RD AND 75TH STREETS. WHEREAS, at the January 19, 2011, City Commission meeting, Commissioner Jonah Wolfson referred for discussion the concept of a North Beach storefront revitalization program, and WHEREAS, the Administration met with the representatives from North Beach, and their feedback recommended starting a facade program on Collins Avenue between 73rd Street and 75th Street; and WHEREAS, at the April 27, 2011, Finance and Citywide Projects Committee meeting, the Administration presented the proposed North Beach façade revitalization program, and WHEREAS, the Committee recommended approving a façade program in North Beach, with a budget of $120,000 ($100,000 for the program and 20% for project management costs), and bringing the item back to the F&CWP Committee, and WHEREAS, the Administration has met with some of the property owners in the program area, who expressed interest in participating in the program, especially for improvements to awnings, signage, windows and painting of the buildings, and WHEREAS, at the October 27, 2011 Finance and Citywide Projects Committee meeting, the Administration presented a revised North Beach Façade Improvement Program and Guidelines, based on discussions with stakeholders in the Target Area, and WHEREAS, the Committee recommended approving the Façade Improvement Program (FIP) Guidelines, and the options of either contracting management of the program to an outside organization, to an individual, or managing the program in-house through a City-contracted employee, to be determined as the program is implemented based on program needs, and WHEREAS, the Administration has developed the attached Façade Improvement Guidelines (Attachment A hereto) that describe the purpose of the program, the target area, eligibility, the funding and match requirements, the application process, eligible activities, community development priorities, design guidelines, architectural drawings and specifications, procurement, financing policies, and general requirements NOW, THEREFORE, BE IT RESOLOVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve the Façade Improvement Program guidelines for the North Beach Commercial Corridor located on Collins Avenue between 73rd and 75th Streets Aog— 2771's-- PASSED and ADOPTED this 14th day of December, 2011. ---- 0-&:-- L/14,--/1-/4 M OR MA 4 H ERA BOWER 4eIs E37!'%I 4' .... -1 %4 ,„..,..„ ... .. .........,..., k•ATTEST Ifil.---Aeo'—. .'-:1;9°' --2-40A-a-,--- 1*(INCORPIORATED) * : # . ROBERT E PARCHER, CITY CLER ''..4 \./;- -I PDA: *1.119 2 H...." NI 4 %-2 , v.* APPROVED AS TO FORM &LANGUAGE i je Fnli EXE, ION .,- i/ _,Ar, •'44:11J1 •mom- or;1':,y ate / 9*. COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving The Façade Improvement Program Guidelines For The North Beach Commercial Corridor Located On Collins Avenue Between 73rd And 75th Streets Key Intended Outcome Supported: Not Applicable Supporting Data (Surveys, Environmental Scan, etc.): Issue: Shall the City implement a Façade Improvement Program in North Beach? Item Summary/Recommendation: At the April 27, 2011, Finance and Citywide Projects Commission Committee meeting, the Administration presented a proposed façade revitalization program At that time, staff explained that they had met with the representatives from North Beach and that their feedback suggested starting any program between 73rd Street and 75th, Street which is in the North Beach Target Area. The Committee recommended approving a façade program with a budget of $120,000 ($100,000 for the program and 20% for project management costs), and bringing the item back to the F&CWP Committee At the October 27, 2011 Finance and Citywide Projects Committee meeting, the Administration presented a revised Façade Improvement Program and Guidelines, based on discussions with stakeholders in the Target Area The Committee recommended approving the Façade Improvement Program (FIP) Guidelines with the option of contracting out the management of the program The Administration recommends that the Mayor and City Commission adopt the Resolution approving the Facade Improvement Program Guidelines for the North Beach Commercial Corridor located on Collins Avenue Between 73rd And 75th Streets Advisory Board Recommendation: FCWPC, January 19, 2011, April 27, 2011, October 27, 2011 Financial Information: _ Source of Amount Account Funds: 1 2 3 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Kevin Crowder, City Manager's Office Sign-Offs: De artment Director Assistant City Manager City Manager # ft '4 11)15 ' -32-9"--"t MIAMIBEACHAGENDA ITEM DATE 12-1((-1( m MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov MEMO# COMMISSION MEMORANDUM TO Mayor Matti Herrera Bower and Members of the City Commission FROM. Jorge M. Gonzalez, City Manager DATE December 14, 2011 SUBJECT A RESOLUTION APPROVING THE FACADE IMPROVEMENT PROGRAM GUIDELINES FOR THE NORTH BEACH COMMERCIAL CORRIDOR LOCATED ON COLLINS AVENUE BETWEEN 73RD AND 75TH STREETS. ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS At the January 19, 2011, City Commission meeting, Commissioner Jonah Wolfson referred for discussion the concept of a storefront revitalization program At the April 27, 2011, Finance and Citywide Projects Commission Committee meeting, the Administration presented a proposed façade revitalization program. At that time, staff explained that they had met with the representatives from North Beach and that their feedback suggested starting any program between 73rd Street and 75th, Street which is in the North Beach Target Area. The Committee recommended approving a façade program with a budget of $120,000 ($100,000 for the program and 20% for project management costs), and bringing the item back to the F&CWP Committee In researching options for the re-implementation of a façade revitalization program in the City, staff looked at the following program requirements in order to gauge the scope of the program • Funding (available and per project) • Use of funds • Requirements for recipients • Management of program The Administration has met with some of the property owners in the program area. These owners have expressed interest in participating in the program, especially for improvements to awnings, signage, windows and painting of the buildings. At the October 27, 2011 Finance and Citywide Projects Committee meeting, the Administration presented a revised Façade Improvement Program and Guidelines, based on discussions with stakeholders in the Target Area. The Committee discussed having the program available for participation by both landlords and tenants, and that individual vacant storefronts could not qualify for assistance, but may qualify as part of a façade enhancement project for a building with multiple storefronts. The Committee recommended approving the Façade Improvement Program (FIP) Guidelines and the Commission Memorandum December 14, 2011 North Beach Façade Improvement Program options of either contracting management of the program to an outside organization, to an individual, or managing the program in-house through a city-contracted employee, to be determined as the program is implemented based on program needs. Program Structure Funding: The program will be funded with $120,000 of FY 2011/12 Community Development Block Grant funds as recommended by the F&CWP, and as subsequently approved by the City Commission on July 13, 2011 Use of Funds. Eligible improvements include, but are not limited to, the following: • Awnings • Paint • Signage • Windows/Doors • Lighting Staff has developed Facade Improvement Guidelines (Attachment B) that describe the purpose of the program, the target area, eligibility, the funding and match requirements, the application process, eligible activities, community development priorities, design guidelines, architectural drawings and specifications, procurement, financing policies, and general requirements. Requirements for Recipients Funding may be provided to tenants or building owners (within the program areas) up to a maximum of $30,000 per building Applicants will be eligible for up to $10,000 with no match requirement, and for any amount between $10,001 and $30,000, applicants must provide a match equal to or greater than fifty percent of the amount awarded through this program. The match must be spent on the facade improvement project. Businesses that have not been in operation for a minimum of one-year must provide a 50% match to all funds that are applied for, including funding below$10,000. Program funding is provided in the form of a loan which is forgiven over a five-year period with no payments required, provided the property continues to be maintained in accordance with the program requirements (such as maintenance of the facade; property taxes are kept current; property insurance is maintained with the City listed as a mortgagee, and the business is current on all City-required fees and taxes) and continue to meet federal guidelines (e.g. serving targeted populations). Eligible properties are those that have businesses that serve the low and moderate income population. Needless to say, any tenant improvements would require landlord approval. Because these are federal funds, and the funds are allocated to the City, if a sub-recipient fails to meet federal requirements for five years, then the City would be responsible for repayment of these funds to US HUD Staff would work with legal to identify a process to ensure that any investment made will meet the federal requirements and minimize any liability for the City. Since this program is primarily intended to benefit existing businesses, the program will be administered in phases, with Phase 1 being only open to existing businesses, and Phase 2 open to both existing businesses and property owners. Individual vacant storefronts do not qualify for assistance, but may qualify as part of a façade enhancement project for a building with multiple storefronts. Commission Memorandum December 14, 2011 North Beach Façade Improvement Program In order to address the federally required affordability period, the Administration recommends that businesses have at least five (5) years remaining on their lease, or that the building owner guarantee either 1) to lease to another qualifying business should the recipient vacate the space prior to the end of the five (5) year period, or, 2) that the building owner repay the funds if required by US HUD. Management of program As the program is implemented, depending on program needs, management of the program may be done by a City-contracted employee, or may be contracted out to a third party (organization or individual) to coordinate the program and ensure compliance with the various entitlement funding requirements. If a third party entity is considered, it must have the capacity to implement this type of program and understand CDBG program restrictions. Such CDBG program restrictions will include complying with timeliness, financial management, procurement, environmental review, labor standards, accessibility and equal employment regulations. One option can be to contract with another existing façade improvement program in a nearby municipality for the management of the City's program. The City (or program manager) may consider entering into agreements with master vendors (contractor, window & awning supplier, etc), to perform the work for the program in order to help improve efficiency in the procurement process, minimize other paperwork on behalf of the beneficiaries, and also potentially address issues these programs can have related to reimbursement of costs. Programs of this type generally require that the applicant expend funds to pay the contractor and/or vendors, and submit requests for reimbursement to the City This requirement can be a hardship for a struggling business that is interested in the program. The Administration will continue to explore ways to minimize this type of burden. Implementation of the program: Once the Guidelines have been approved, letters will be sent to the owners and the tenants of the buildings with a copy of the Guidelines and an application. They will be requested to complete the application and submit it to the City. Priority will be given to applicants that contribute the most matching funds and/or to projects that would have the greatest visual impact on the district. A scope of services and budget will be included in each application. The applications will be reviewed by staff and, if complete and qualified, a recommendation for approval will be forwarded to the City Manager for final approval. A contract will be executed between the City and the business or property owner. The business or property owner will be required to solicit three quotes for the scope of services and present to the City for final approval. The project will be monitored by the City staff and the program manager (if one is engaged) for compliance with City and US HUD rules and regulations. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Resolution approving the Façade Improvement Program Guidelines for the North Beach Commercial Corridor located on Collins Avenue Between 73`d And 75th Streets. JMG/HF/kc Attachment— Proposed Façade Improvement Program Guidelines TAAGENDA\2011\12-14-11\Facade Memo.docx ,4TTAC�-inie ]r '�$ '� Facade Improvement Program Guidelines— NORTH BEACH City of Miami Beach December, 2011 Purpose of the Program The City of Miami Beach) is providing an incentive program to improve the façades of eligible properties within a targeted revitalization area in North Beach. By enhancing the appearance of business/building façades, the program serves to improve the economic viability of the businesses in this area. Better aesthetics improve the marketability of the businesses, and draw business and residents to the area and increase property values. Target Area The current façade improvement program target area is North Beach on Collins Avenue from 731d Street to 75th Street. If you have a question as to whether your property is within one of the target areas, please contact the City at 305-673-7010. Funding and Match Requirements Funding may be provided to buildings or tenants (within the program areas) up to a maximum of $30,000 per building. Applicants will be eligible for up to $10,000 with no match requirement, and for any amount between $10,001 and $30,000, applicants must provide a match equal to or greater than fifty percent of the amount awarded through this program. The match must be spent on the facade improvement project. Businesses that have not been in operation for a minimum of one-year must provide a 50% match to all funds that are applied for. Program funding is provided in the form of a loan which is forgiven over a five year period with no payments required, provided the property continues to be maintained in accordance with the program requirements, such as maintenance of the façade;, property taxes are kept current property insurance is maintained with the City listed as mortgagee; and the business is current on all City-required fees and taxes [make language consistent between memo and this]. Application Process Applications for the Façade Improvement Program will be available as funding allows. To obtain an application or additional information about the program, call 305-673-7010. Applicants will be required to complete the program application and provide a project timeline, drawings or photographs, and specifications of the proposed façade improvement work to the City's program manager for approval prior to obtaining bids. Proposals must pass a threshold review for eligibility, and will then be reviewed for quality and impact of the proposed improvements. Following are the steps in the process: • Obtain application, either from the City web site or the by calling 305-673-7010 • Consult the map attached to the guidelines to verify that the business is an eligible recipient and that the property is located in an eligible area. • Obtain drawings and cost estimates • Forward completed application to the City of Miami Beach City Manager's Office. • The application will be evaluated and, if the proposed project meets the established eligibility, the owner will be notified and can then proceed to obtain architectural drawings, if necessary, and at least two bids for the project. • When bids are obtained, forward to the Program Manager for final approval. Eligibility All businesses and/or property owners willing to improve the exterior of properties located within the designated program areas may be eligible to receive assistance. A recipient may utilize the Façade Improvement Program in conjunction with other public financial resources. Businesses and property 1 12/5/2011 owners may receive assistance for more than one location based on funding availability. Eligible properties are commercial and mixed commercial/residential with commercial façades visible from the street. Funding will be made available in a phased process, with priority on tenants first, followed by a second phase with expanded eligibility to the property owners. Buildings will be required to be occupied to be eligible for this program. Tenants that have not been in operation for a minimum of one-year must provide a 50% match to all funds that are applied for. New construction and vacant individual storefronts will not be considered for this program. Applicants will be required to demonstrate financial capacity to meet the program matching requirements and must be current on all property taxes, mortgages, insurance and city fees/taxes. A credit report will be obtained as part of the application process. Eligible Activities Façade renovation activities must involve the general upgrading of a building's external appearance in compliance with the Design Guidelines and Design Review process. Examples of eligible activities: • Masonry repairs and tuckpointing; • Repair/replace/preserve historically significant architectural details; • Storefront reconstruction, • Cornice repair; • Exterior painting and stucco; • Awnings and canopies; • Permanent exterior signage integrated into the storefront design; • Repair/replacement of gutters and down spouts; • Façade building code items; • Utility/trash enclosures; • Exterior façade lighting 2 12/5/2011 Examples of activities that generally are not eligible: 1 Landscaping, 2. Non-visible roofing, 3 Attached, hanging or projecting signs unrelated to the architecture of the building; 4 Mechanical equipment enclosures (non-visible); 5. Billboards; 6. Interior renovation; 7 Temporary, portable or non-permanent improvements; 8. New construction, 9. Property acquisition; 10. Expansion of building area, 11. Conversion of use; 12. Working capital, - 13 Refinance of existing debt; 14 Payment of delinquent taxes; 15 Improvements in progress or completed prior to loan/grant approval. 16. Improvements involving interior rehabilitation, including modernization of electrical, mechanical, or structural elements. However, facade improvement funds may be used for facade improvements in conjunction with a separately financed rehabilitation project; 17 Improvements that do not follow the approved architectural plans and designs for the facade renovation, 19. Activities specifically prohibited by the program's funding source. Community Development Priorities Approval of applications will be considered based on strength of proposals and readiness to begin work, funding availability, and Community Development priorities. Priorities include' • Projects increasing or retaining jobs within the redevelopment area • Severely deteriorated buildings with greatest negative impact on the community • Properties identified blighted as defined in applicable area redevelopment plan • Properties with significant Code Enforcement history • Prominent highly visible locations, such as major intersections or locations on major arterials • Businesses located in pedestrian oriented business locations • Buildings located in areas where other public investment is taking place • Projects that leverage maximum private investment • Buildings without residential occupancy Design Guidelines Eligible proposals will be required to follow design guidelines for rehabilitation of historic buildings, if applicable These guidelines are provided to ensure appropriateness of the proposed work, and to provide for compatibility with the affected building's original appearance and with other area buildings. The Planning Department will review all applications for consistency with the guidelines. Simple applications for paint, awnings, signage and/or exterior lighting may be approved administratively. Projects that involve alterations to the windows and doors, or to other architectural features on the façade, may require approval by the Historic Preservation Board. Prospective applicants are encouraged to consult with the Planning Department prior to preparing their application to ensure best results All tenant signage must be in compliance with sign regulations in Chapter 138 of the City Code. Grant funds may be used to correct violations of the signage code. 3 12/5/2011 Application Requirements Applications must include a complete description of the proposed scope of the project, including, as applicable, elevation drawings, photographs, color samples, specifications and a minimum of one written proposal from a qualified vendor for painting, awnings, signs and windows/doors. If the application receives preliminary approval, then the applicant will be required to provide additional drawings and specification necessary to receive a building permit. These may include shop drawings from the vendor or signed and sealed architectural or engineering drawings, depending upon the scope of the project. Procurement Once the design is approved, the Applicant agrees to solicit a minimum of three (3) competitive bids for the rehabilitation work and to provide evidence to the City of the bids received and the amount of each bid. Contractors selected are required to take affirmative steps to encourage the use of minority and women-owned business enterprises when subcontracts are let. Financing Policies 1 Reimbursements — progress payments will be on a reimbursement basis only The total reimbursement for all forms of façade improvement assistance shall not exceed $30,000 per project. Projects must be completed within twelve months after the start of construction, unless the City approves a longer timeline, at the City's sole discretion. 2. Security - the façade improvement project reimbursement will be secured by a deed of trust on the real estate for the requisite term which will self-amortize proportionally each year; providing the property continues to be maintained in accordance with the program requirements, such as maintenance of the facade, property taxes are kept current, and property insurance is maintained with the City listed as mortgagee. 3. Repayments - No repayments will be required if all terms are met. 4 Default - A recipient shall be considered in default and the balance of financial assistance immediately due and payable upon failure of the borrower: to properly maintain the façade after improvements are completed, delinquency in property taxes; to maintain property insurance with the City listed as mortgagee, or failure to operate in compliance with all applicable local, state, and federal codes, laws, and regulations. 5. Remedies of Default - In the event of default, the City may exercise any combination of the remedies available to it with respect to the security agreement(s) The City may take whatever action at law, or in equity, as may appear necessary or desirable to collect any outstanding balance or to enforce the performance and observation of any other obligation or agreement of the recipient. General Requirements 1 All work must be done in accordance with the Design Guidelines, all applicable local, state and federal codes, and rules and regulations for the Community Development Block Grant program. Any renovation work undertaken prior to the City's final written authorization to begin construction is not eligible for assistance under the program. All renovation work undertaken in conjunction with the facade improvement program which exceeds approved financial assistance shall be borne by the applicant. 2. All construction management shall be the responsibility of the applicant. All work undertaken using CDBG funds will be subject to the Davis Bacon Act. Applicant must contact the City prior to obtaining bids when Davis-Bacon will be required to obtain current wage rates to provide potential bidders. 3. Properties with residential components will be required to meet applicable lead-based paint abatement requirements. 4 Each recipient will be responsible for all acquisition and relocation costs when displacement of residential or nonresidential tenants occurs as a result of the project, in accordance with the 4 12/5/2011 Uniform Relocation Act. If temporary tenant relocation will be required for this project, contact the City for further guidance prior to submitting this application. 5. All applicants shall be required to demonstrate compliance with nondiscriminatory employment practices and Affirmative Action Programs under Title VI and Section 112 of the Civil Rights Act of 1969 and Public Law 92-65. Applicants are encouraged, to utilize minority and women-owned business enterprises under this program. 6 The City, the Department of Housing and Urban Development, the Comptroller General of the United States, 'or any duly authorized representatives, shall have access to any books, documents, papers and records which are directly related to the program assistance for the purposes of monitoring, making audits, examination, excerpts, and transcripts. All records supporting the costs and components of program assisted improvements shall be maintained for a period not less than three (3) years following completion of the program agreement period, agreement termination, or default, whichever shall first occur. No person who is an employee, agent, consultant, officer, appointed official, or elected official of the City of Miami Beach who exercise or have exercised any functions or responsibilities with respect to CDBG activities, or are in a position to participate in a decision-making process, or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit, or have interest in any program assistance, either for themselves or those with whom they have family or business ties, during their tenure or for one (1) year thereafter Please contact the City of Miami Beach at 305-673-7010 with any questions or to obtain additional information about the Facade Improvement Program. 5 12/5/2011