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
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PASSED and ADOPTED this 14th day of December, 2011.
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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
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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
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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.
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