Resolution 93-20993 . q e lc/ :i)//y
'Alt ' /c1) A RESOLUTION NO. 9�3--Z6 &
q'r'
t
11�I 04s1 A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING
IL THE GUIDELINES FOR THE HOTEL REHABILITATION
S� MATCHING GRANT PROGRAM AND AUTHORISING THE
Q APPROPRIATION OF $500,000 IN LEGALLY AVAILABLE
'C' FISCAL YEAR 93-94 RESORT TAX PROCEEDS FOR
IMPLEMENTATION AND ADMINISTRATION OF THE
PROGRAM. .
WHEREAS, the Hotel Task Force has spent considerable time
discussing methods of. increasing the inventory of transient hotel
rooms on Miami BeAg07;.and
WHEREAS, the Mayor and City of Miami Beach Commission by
Resolution No. 91-20385 initiated a hotel rehabilitation loan
program with the intent of providing interest subsidies to the
owners of older, smaller hotels to assist in the rehabilitation of
the properties; and
•
WHEREAS, despite efforts of the City staff and the Miami
Beach Hotel-Motel Association to promote the City's loan program
through conferences and workshops and other means, no applications
were received for the City's loan program; and
• WHEREAS, the City Administration and the Hotel/Motel
Association has recommended that a matching grant program similar
to the already approved loan program be made available to owners of
older, smaller hotels to assist with the rehabilitation of hotels;
and
WHEREAS, the matching grant concept would allocate up to
a dollar-for-dollar match based on a sliding scale formula; and
J
WHEREAS, the City Administration recommends the approval
and adoption of these Guidelines by the Mayor and City Commission
of the City of Miami Beach, subject to changes as may be required
from time to time by the City -Attorney; and
WHEREAS, projected FY 93/94 resort tax proceeds will
exceed the amount necessary to satisfy all obligations payable to
these proceeds, and the projected excess proceeds are sufficient to
fund this program; and /
WHEREAS, the City Administration is requesting
authorization to appropriate $500,000 in legally available funds
from FY 93/94 resort tax proceeds in order to implement and
administer said program.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Guidelines
for the City of Miami Beach Matching Grant Program for Hotel
Rehabilitation attached hereto as "Exhibit 1" are hereby approved
and adopted, and that the appropriation of $500,000 in legally
available funds .from FY 93/94 Resort Tax proceeds for
implementation and administration of the program is hereby
authorized.
• PASSED AND ADOPTED THIS /5 Z DAY OF 2(2ce.,kl- , 1993.
MAYOR
ATTEST:
FORM APPROVED 32
CITY CLERK 1 LEGAL DEPT.
e:\ceb\resrtex.rso Ely _ e. AGENDA - - L
ITEM
oab3 i i - 5r-;'3 I c
DATE 0.—t J 9—
ITEM # EXECUTIVE RESPONSIBLE
AN DUE D
ITEM DESCRIPTIONACI'I QN DESIRED � ATE
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R-7-B • Amendment to Second Extension and Clarification Resolution 93-20991 adopted, amended agreement to be revised and typed Larry Feingold
Agreement with Cobb Partners South Beach, LTD. after-the-fact.
RDA transcript of 12/15/93 discussion to be attachment to the agreement Richard Brown
R-7-C
Preservation of "Coral Rock" Buildings at 7644 R-7-C-3 Resolution 93-20992 adopted (Uebman's alternate resolution Harryr Mavrogenes
Collins Avenue. regarding historic designation process).
in
Add the site to the data base as historic. Dean Grandln
R-7-D Establish Policy Requiring the Identification of Not reached, deferred to January 5, 1994.
Principals of Entitles Wishing to Sell Property to
CMB.
R-7-E Guidelines for the Hotel Rehabilitation Matching Resolution 93-20993 adopted as revised verbally:
loana not grant,fault, It ebeeter HarryAMavrogenes
Grant Program. repaid within ten years, or upon sale, g.
gulla
than ten years. Revision to,be typed. Ronnie Singer, North Beach
Development Corporation, if legally possible,also consider applications
from North Beach hotels.
Prepare LTC regarding the process of making the loans available. Harry Mavrogenes
Harry Mavrogenes
R 7-F Marina Lease—Extend 1st Amendment/Continue Resolution 93-20994 adopted. John Dellagbriaae
Negotiations for Second.
R 7-G Month-to-Month Agreement with Consolidated Resolution 93-20995 adopted. Ninety days to get this resolved. Mayra ard Dlaz Dorn-Buttacavon
Medical Services. (Fire Department) BraniRaul Agulla
DECEMBER 15, 1993 7
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REGULAR AGENDA,-. DECEMBER 15 1993
R-7. RESOLUTIONS (CONTINUED) ROM MUT, NOT f UR DISBIBUTION
E. COMMISSION MEMORANDUM NO. 711-93
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROVING THE GUIDELINES FOR THE HOTEL REHABILITATION MATCHING GRANT PROGRAM; AND
AUTHORIZING THE APPROPRIATION OF $500,000 IN LEGALLY AVAILABLE FISCAL YEAR 1993/94
RESORT TAX PROCEEDS FOR IMPLEMENTATION AND ADMINISTRATION OF THE PROGRAM,
1. COMMISSION MEMORANDUM NO. 644-93, DATED NOVEMBER 17, 1993.
2. MATCHING GRANT PROGRAM FOR HOTEL REHABILITATION GUIDELINES. •
ADMINISTRATION RECOMMENDATION: THAT THE CITY COMMISSION ADOPT THE RESOLUTION TO
APPROVE THE GUIDELINES FOR THE PROGRAM FOR TRANSIENT HOTELS OF UP TO 250 ROOMS, WITH
MATCHING FUNDS RATIO BASED ON PER-ROOM COST. ,NOTE: EXISTING LOAN SUBSIDY PROGRAM TO
REMAIN INTACT IN THE EVENT INTEREST RATE MARKETS CHANGE.
(DEFERRED FROM 12/24/93)
ACTION: The Manager advised that the potential for loans had been tried
unsuccessfully; that the Finance Committee recommended approval of the proposed grant
concept for historic buildings (in the City's database) as an experiment (will seek
additional resources [Tax Increment Financing, etc. ] to expand if successful) but
PE: clarify that the funds would be recovered in the event of a sale, refinancing, or
default, with provisions waived after 10 years (would then be a grant) ; that there
would be a process with advertising and competing proposals.
Commissioner Shapiro expressed opposition to the program, suggesting developers should
seek private funding for such projects, considering the attraction to Miami Beach and
availability of financing; that the proposed projects be required to demonstrate that
1) the City funds would be utilized to serve a valid public purpose and 2) other
funding sources were unavailable; that these tax funds should be used to service the
residents'/tourists' needs (public safety, etc.) and not as a gift to private
' developer(s) . Discussion held. Commissioners Liebman and Pearlson suggested this
would encourage restoration of historic properties (offset lost tax abatement
incentive for properties in the redevelopment area) and maintain the hotel room stock.
Resolution No. 93-20993 adopted approving Guidelines as amended, to-provide for a loan
(not grant) to be repaid upon default, refinance, sale, .lease assignment, ceasing to
operate as transient hotel, etc. , with a sunset no later than 10 years (1-year trial
program) ; applications to be reviewed by Loan Review Committee and approved by City-
Commission.
(Vote: 5-1_ ,Commissioner Shapiro opposed; Commissioner Gottlieb absent.
North Beach Development Corporation Executive Director Ms. Ronnie Singer asked the:;
Administration to determine if North Beach properties were in the City's historic=i
property database and if not, that they expeditiously be surveyed and added to th
database so they could participate in the program.
Also see related item R-6C. `""
F. CITY ATTORNEY COMMISSION MEMORANDUM NO. 712-931
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA
AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO CONTINUE WITH NEGOTIATIONS FOleL
A SECOND AMENDMENT TO MARINA LEASE AGREEMENT; AND AUTHORIZING A THIRD EXTENSION TO THE
FIRST AMENDMENT TO MARINA LEASE AGREEMENT FOR A PERIOD NOT TO EXCEED TWENTY-TWO (22)
DAYS, SAID PERIOD COMMENCING ON DECEMBER 16, 1993, AND ENDING ON JANUARY 6, 1994.
(REGARDING CONSTRUCTION OF DRY STACK STORAGE FACILITY AND ALTERNATIVELY USING SITE FOR
CONSTRUCTION OF REQUIRED PARKING, ETC.)
ACTION: Resolution No. 93-20994 adopted.
: 5-0;
Vice-Mayor Eisenberg away from table; Commissioner Gottliebote absent.)
During the .M.B. Redevelopment Agency meeting, Chief Deputy City Attorney
John Dellagloria advised that the details of negotiations with the Tallahassee
Building Corporation (Marina lessees) , the M.B. Housing Authority, and the Portofino
Group were related to the public; and the report was well received by, the Land Use'Sg'
Development Committee, South Pointe Advisory Board, and Planning Board. He advised
that they would be working with the Portofino Group regarding concerns raised
(development intensity of their proposed project essentially south of 1st Street) ;
that the negotiation results would be submitted to the Commission 1/5/94 or 1/19/94.
ACTION SUMMARY
ROM�Q � 9NOT. FOR ;i �i � i� DECEMBER 15, 1993 -16-
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CITY OF MIA ` I EACH
1, AO.
DRIVE P%'•1r:,,9.i E' CH 1
CITY HALL 1700 CONVENTION CENTER eEA� FLORIDA 33 39
OFFICE OF THE CITY MANAGER • TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. `7 J /-g
TO: Mayor Seymour Gelber and DATE: December 15 , 1993
Members of the City Commission-
FROM: Roger M. Ca
‘ W-6
City Manager
SUBJECT: APPROVAL OF THE MATCHING GRANT PROGRAM FOR HOTEL
REHABILITATION
•
ADMINISTRATION RECOMMENDATION:
It is recommended that the City Commission approve the attached
guidelines for the Matching Grant Program for Hotel Rehabilitation
in order to facilitate additional projects based upon the
awardability of grants as well as loans.
BACKGROUND:
On December 1, 1993, the City Commission referred the Matching
Grant Guidelines for Hotel Rehabilitation to the Finance Committee
for review and approval.
At the meeting of the Finance Committee held on Thursday, December
9, 1993, Staff presented a potential alternative to the Matching
Grant Program in the form of a low-interest loan with a flexible
repayment plan. This however, would pose a number of administrative
complications in terms of monitoring and expenses.
. 'The Committee favored the Matching Grant Program, provided that the
City has an opportunity to recover its investment in the event of
default, sale or refinancing of the property. Staff informed the
Committee that the program indeed calls for reimbursing the City in
' the event that the owner of the property refinances and/or sells
the property within ten years of receiving the grant, or defaults
on the conditions of the program.
The Committee also called for approving the program for a one year
trial period, upon which if successful, could then be extended and
enhanced with additional funding.
Commissioner Neisen Kasden made the motion approving the Matching
Grant Program with the repayment provision for a one-year trial
period. Commissioner Sy Eisenberg seconded the motion. The
Committee also directed staff to advertise the program to the
public.
ANALYSIS:
The City has already received a warm reception for the proposed
Matching Grant program from hotel owners. It is anticipated that
by early January, we will be receiving applications for some very
exciting projects.
-1- AGENDA
ITEM , 1
DATE 1 Z-I S"' I _J
PROGRAM FUNDING:
At present, the program is funded from a $500, 000 allocation of
Resort Tax. After monitoring the effectiveness of the program over
a one-year trial period, the Administration may recommend either
increasing or decreasing the funding from Resort Taxes and possibly
Tax Increment Financing to accommodate program needs.
CONCLUSION: .
It is recommended that the City Commission approve the attached
guidelines, creating the . Matching Grant Program for Hotel
Rehabilitation for a one-year trial period and retaining the
existing Loan Subsidy Program intact in the event interest rate
markets change in the future.
RMC:jph .
Attachment
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-2- 29
CITY OF ' MIAMI, , BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. 644 - q3
•
TO: Mayor Seymour Gelber and • DATE: November 17, 1993
Members of the City Commission
FROM: Roger M. Carit
City Manager U�
•
SUBJECT: ADDITION OF MATCHING GRANT COMPONENT TO THE PROGRAM FOR
HOTEL REHABILITATION •
ADMINISTRATION RECOMMENDATION:
It is recommended that the . City Commission approve the attached,
revised guidelines for the' Matching Grant Program for Hotel
Rehabilitation in order' to facilitate additional projects based
upon the awardability of grants as well as loans.
BACKGROUND:
The City of Miami Beach initiated, a Hotel- Rehabilitation Program
over a year ago with the intent of assisting owners of small hotels
to rehabilitate and upgrade their properties. Despite efforts of
City staff and the Miami Beach Hotel/Motel Association, with
conferences and workshops and other contacts, no candidates
applied. The .City Administration conferred with the Hotel/Motel
Association and has recommended creating revised guidelines which
would allow, similar to the Multi-Family Rehabilitation Program, a
matching grant -option. The option is of interest to at least two
hotel developers and, if approved by the City Commission, the
..Tdministration foresees coming back with at least 'one contract for •
a major rehabilitation. The program is designed to assist the
smaller, predominantly historic hotel inventory with a maximum 250
room requirement.
ANALYSIS:
The existing program which is structured as a loan subsidy, has
received very little interest for two primary reasons: Many hotel
owners and operators were either not in a financial position to
take on additional debt and those that could take on the debt, or
found that market interest rates were low enough not to require
City assistance. Page 5 of the attached revised guidelines
outlines in detail the terms and conditions for the Matching Grant •
Program. Matching grants will be awarded on the basis of the
quality and dollar amount of the proposed project (calculated on a
per-room basis) . The match will be calculated using the following
sliding scale:
Project Cost Ratio of dollar match
• per Room to Private: Investment
$6, 000 to $8, 000 1 to 1 •
$4, 000 to $5, 999 1 to' 2
$2, 000 to $3, 999 1 to 3
-1- 30
If the project is refinanced, sold or the lease is assigned in the
first ten years, the grant funds must be repaid.
This concept has been approved and utilized as an alternative for
the Multi-Family Rehabilitation Program and, in that case, has even
passed the scrutiny of U.S. HUD. The City' s Loan Review Committee
would continue to be utilized to review and recommend specific
applications to the City Commission.
PROGRAM FUNDING:
At present, the program is funded from a $500, 000 allocation of
Resort Tax. ,In future years, after monitoring the effectiveness of
the program, the Administration may recommend either increasing or
decreasing the funding from Resort Taxes and possibly Tax Increment
Financing to accommodate program needs .
CONCLUSION:
It is recommended that the City Commission approve the attached
guidelines, creating the Matching Grant Program for Hotel
Rehabilitation and retaining the existing Loan Subsidy Program
intact in the event interest rate markets change in the future.
RMC:jph
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Attachment
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CITY OF MIAMI BEACH
MATCHING GRANT PROGRAM FOR HOTEL REHABILITATION •
GUIDELINES
INTRODUCTION
The Matching Grant Program for Hotel Rehabilitation is designed to provide direct matching grants to owners-
of hotels in Miami Beach to rehabilitate their properties. The objective of the program is to encourage the
enhancement of the City's transient hotel room supply in order to meet the needs of the Miami Beach
Convention Center as well as to become a truly competitive business and leisure destination.
Through this program,the City will use unencumbeied Resort Tax Funds to provide up to a 50 percent matching
grant to eligible hotel owners who qualify according to the criteria and conditions specified in the following
guidelines.
DEFINITIONS OF TERMS
1. General
In construing the provisions of these guidelines, words and terms not defined herein shall be interpreted in
accordance with their normal dictionary meaning or in the absence thereof, customary usage.
2. Definitions
The following are definitions of various terms as used with respect to the federally-funded facade renovation
program:
a. giq - The City of Miami Beach. Obligations of either an applicant or a contractor, are
obligations owed to the City of Miami Beach. However, dealings will be with the City
representatives as indicated in these guidelines..
b. Codes and Ordinances-Applicable codes,ordinances and statutes of the City and Dade County
including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and
Property Maintenance Standards.
c. Cost-per-Room-.Overall project cost(inclusive of public space,landscaping and physical plant)
divided by the total number of guest rooms in the hotel.
d. Development.Design and Historic Preservation Division-The Division of the City of Miami
Beach designated to administer the Matching Grant Program
e. Design Guidelines-Applicable guidelines of the City including,but not limited to, the Miami
Beach Design Review Guidelines, the Comprehensive Plan and the Zoning Ordinance of the
City of Miami Beach.
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f. Eligible Costs -Those construction and architectural costs, building permit or related fees as
required by the work write-up to carry out the intended rehabilitation of the property, and as
further defined on page 4 under Eligible Rehabilitation Costs.
g. Matching Grant- An outright disbursement of unencumbered Resort Tax funds requiring no
repayment unless the ownership of the property is transferred, a lease of the property is
assigned or sublet, or the property ceases to operate as a transient hotel within ten (10) years
• of receiving grant funding.
•
h. Qualified Eligible Contractor-Licensed by Dade County and the City of Miami Beach for the
type of work being performed. Contractors must have proof of adequate Worker's
Compensation insurance coverage for his/her work force,and a minimum of$300,000/$100,000
liability coverage as required under the State guidelines, in case of injury or damage to the
owner or general public.
•
i. Qualified Eligible Work Force- Use of an adequate number of skilled workmen/women who
are thoroughly trained and experienced in the type of rehabilitation work being performed and
• who are familiar with the specified requirements and the methods needed for proper
• performance of the work.
•
j. Regulations-Applicable local,state and federal regulations and provisions governing program
administration.
k. Rehabilitation-The restoration of a structure or facilities in connection with a structure, to a
condition of good repair and competitive position.
CITY'S REVIEW OF APPLICATIONS
The Department of Development, Design & Historic Preservation shall make an initial determination as to
whether or not the applicant and the property are eligible for the matching grant as set forth in the guidelines.
The application will then be reviewed by the Loan Review Committee (LRC), a five member committee
appointed by the City, responsible for the reviewing and recommending to the Miami Beach City Commission
• the applications which should receive funding under the program. If the application is approved by the Miami
Beach City Commission, a fund commitment will be issued, and a reservation of funds will be made for the
project.
Only applications which have been reviewed and recommended by the LRC to the Miami Beach City
Commission,shall be eligible for a City of Miami Beach Matching Grant Program for Hotel Rehabilitation.
If the City determines that an application is not consistent with the criteria and requirements for eligibility, it
shall set forth in writing the reasons substantiating its findings. Such findings shall be forwarded to the applicant
within 30 working days from the date the initial determination of ineligibility is made. Notice of disqualification,
ineligibility or denial of grant award will be provided to each applicant by certified mail with a statement that
applicants who wish to contest the findings must request review of the decision in writing and postmarked or
hand delivered within 14 calendar days of receipt of the notice. The request for review must be filed with the
Development,Design and Historic Preservation Division Director. Failure to file i request for review in the time
•
and manner specified shall constitute a waiver of proceedings under these guidelines. The request for review
must specify, in detail, the basis for review and clearly describe disputed issues or material facts. A final
2
34
determination, including written notice thereof, shall be made and provided to the applicant•within 20 working
days of receipt of the request for review.
The Miami Beach City Commission will have final authority to approve the applications for
funding.
PROPERTY QUALIFICATIONS
Any property to be considered for a matching grant, must meet the following qualifications:
• The property must be located within the boundaries of the City of Miami Beach.
•The property must be a purely transient hotel'or vacant upon application and operate as a transient
hotel for a minimum of ten years after rehabilitation.
• The property cannot exceed two hundred and fifty(250) hotel rooms in size upon application.
• Hotel guest rooms must conform to size requirement specified in the City of Miami Beach's Zoning
Ordinance.'
• The property must be in need of rehabilitation to comply with the applicable codes and ordinances
as determined by a City inspection.
• The rehabilitation of the property must be physically and financially feasible for such rehabilitation,
based primarily on the market potential of the property after rehabilitation;and,its projected income
sufficient to service the debt after all operating expenses for the property are paid.
• The property was not previously assisted through'City programs.
•If applications have been submitted for more than one City program,the property is only eligible for
one (1) award.
APPLICANT ELIGIBILITY CRITERIA
The applicant requesting a matching grant must meet the following eligibility criteria:
• The applicant must have fee simple title to, or a firm contract to purchase fee simple title to the subject
property. In the case of a purchaser, the applicant must be able to demonstrate a financial commitment to
purchase the property as evidenced by a sales contract or similar agreement with the present owner of the
building, showing at the time of the application, control of the property. At the time of grant funding, the
applicant must be in possession of the property; or
' The applicant must have at a minimum, a fifteen (15) year leasehold interest in the property, demonstrated
by a lease contract or similar agreement.
'Transient Hotel-A building containing a room or a group of rooms,with ingress or egress which may or
may not be through a common lobby,intended for rental.to transients on a day-to-day,week-to-week,or month-
to-month basis not to exceed thirty (30) days during any one stay; and, not intended for use or used as a
permanent dwelling.
2 Hotel Unit Size Requirements:
• Local Historic District-200 sq.ft.
*All Other Areas- 15% of units @ 300-335 sq.ft.
85% of units @335+ sq.ft.
3
• I)
,
• The applicant must demonstrate to the satisfaction of the City, its ability to provide any additional funds as
needed over and above the amount of the grant award to assure completion of the rehabilitation work so that
the building being rehabilitated, will at a minimum, comply with the applicable codes and ordinances.
ELIGIBLE REHABILITATION COSTS
A matching grant for hotel rehabilitation may be made only with respect to a property which needs to be brought
up to applicable codes and ordinances.However,within the limitations of the grant,the grant may also include
amounts for purposes other than meeting those requirements.
In addition to those costs for rehabilitation to make the property conform to the applicable codes and ordinances,
a rehabilitation grant may include funds to,cover the costs described below.
Includable costs for labor and materials should be considered in the following order of priority.
• Incipient Violations- Improvements to correct violations and/or conditions which may, in the opinion of the
City, develop into hazardous conditions and/or code violations.
• Good and Readily Maintainable Condition - Improvements necessary to put the property and facilities in a
condition. which requires a minimal amount of maintenance, and when appropriate, improvements which
conserve energy.
• General Property Improvements- Improvements which are in addition to those required in applicable codes
and ordinances, including landscaping, parking, public areas and other ancillary components. Such costs shall
• not exceed twenty percent (20%) of the total rehabilitation costs.
• Purchase, installation or repair of furnishings.
*Reasonable fees paid for professional services in preparing work write-ups,cost estimates,working drawings,
specifications, construction contract documents, supervision and other designated tasks.
•An amount not to exceed ten percent(10%) may be included in the grant as a contingency for any unforseen
includable construction costs.
NON-ELIGIBLE COSTS
The following costs not eligible for the matching grant program:
• Refinancing of existing mortgages.
• Purchasing of the property.
• New construction or expansion of the size of the structure.
• Delinquent taxes, insurance payments, liens, charges and assessments. It shall be the applicant's
responsibility to bring these payments current and to satisfy in full any liens, charges or assessments
against the property prior to receiving grant funds from the City.
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TERMS AND CONDITIONS FOR THE MATCHING GRANT PROGRAM
This section sets forth the City of Miami Beach required terms and conditions for the Matching Grant Program.
Matching Grant Awards
Generally, an applicant may receive a grant to cover up to 50% of the total project'costs. The 50% matching
grant may only be used for eligible costs.The minimum matching grant amount to be provided by the City shall
include all costs necessary to bring the subject property into compliance with applicable codes and ordinances.
Matching Grants will be awarded on the basis of the quality and dollar amount of the proposed project
(calculated on a per-room basis). The match will be calculated using the following sliding scale:
Project Cost Ratio of Dollar Match
Per Room To Private Investment
$6,000 - $8,000 1 to 1
$4,000 - $5,999 1 to 2
$2,000 - $3,999 1 to 3
The City may increase such limit if unforeseen costs arise-after construction has commenced -that are directly
'related to major structural work or general contractor disputes. This increase shall not exceed 10% of the total
project costs and is subject to the availability of funds. If the amount will exceed 10%, the applicant must, at a
minimum, match the amount equally.
Availability of Funds
• Matching Grant awards will be made on a first-come-first-serve basis and shall be limited by the amount of funds
available to the Program.
Points of Agreement
The applicant shall agree,as required by the related documents,to abide by all applicable City,County and State
regulations, and the following terms and conditions:
* Completion of Work-Assure that the rehabilitation work shall be carried out promptly and efficiently through
a written contract with the concurrence of the City, and completed within a certain time as established by the
City.
* In case of construction cost overruns, any additional funds needed to complete the project must be provided
by the applicant. The City will not be obligated to fund the additional amounts.
* Applicants may select their own contractor and do not have to use competitive bidding procedures.
* Access to Property and Records -At any time during the rehabilitation period, designated personnel of the
City of Miami Beach shall have the right to inspect the rehabilitation work, contracts, materials, equipment,
payrolls and all records with respect to the project.
5
• Applicant's Inspector - The applicant shall be required to retain the services of a qualified inspector, i.e.,
licensed architect or professional engineer, who must periodically inspect the project and certify to the
Department of Development, Design and Historic Preservation on a monthly basis, the percentage of the work
completed in accordance with plans and specifications. The American Institute of Architect's standards or
equivalent, must be used for such certifications.
The applicant is solely responsible for compensating this inspector for any services provided.
• Insurance -Maintain hazard,liability and flood insurance on the property as required by industry standards.
Conflict of Interest-Allow no member of the City Administration,City employee, public official or member
of the State or County Government, who exercises any functions or responsibilities in connection with the
administration of the Program or approval of the project,to have any interest,direct or indirect,in the proceeds
of the grant payment,or in any contract entered into by the applicant for the performance of the work financed,
in whole or in part,with the proceeds of the matching grant program.
•Transfer or Refinancing the Property-Should there be a transfer or refinancing of the property, a lease of
the property is assigned or sublet, or the property ceases to operate as a transient hotel during or within ten
(10) years of the completion of the rehabilitation project, the owner or lessee of the property must make
provisions to reimburse the City of Miami Beach all of the grant money received. •
PROCESSING APPLICATIONS AND DISBURSING FUNDS
Application Submission Requirements:
Under the program, an application for a matching grant must include the following:
a.Completed application form; and
b.Three Financial References
• c. Proof of ownership (deed or sales contract) or long-term lease (lease agreement); and
d. Organizational documents(if other than individual); and
e. Copy of executed construction contract entered into by the applicant and a licensed General
Contractor,which includes commencement and completion dates,contract amount,scope of work and
applicable regulations and standards.
f. Description of proposed work -A written description of the rehabilitation work intended to
be accomplished to restore the property, identifying each item and setting forth methods to correct
the deficiencies, as well as an itemized cost estimate showing the probable construction cost
for each deficiency to be corrected; and
f. A copy of final approved plans and specifications for the rehabilitation of the project, by the City's
Building Department,which include proof of satisfaction of all variances required, and compliance
with all local codes and standards. Plans must also comply with the requirements of the City's
• Planning and Zoning Department; and
g.If applicable,approval of the proposed improvements from the State of Florida Historic Preservation
Officer(SHPO).For this purpose,,the applicant will have to provide working drawings, photographs
and certification forms, as determined necessary by the SHPO.-
h.All applicable building permits must be obtained, from the City's Building Department, as required
by applicable City Ordinance.Also,any other necessary local and State permits and approvals from
any other governmental authorities must be obtained; and
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i. Photographs of the property, to include exterior shots of all sides of the building, and interior shots
of the units which exhibit the need for work to be performed and the specific areas to be improved;
and
j. Two (2) sets of to-scale plans of the proposed project that include: site plan, floor plans, elevations,
and a survey; and
k. An EPA study or audit of the building.
I. Evidence, satisfactory to the City's Risk Manager, of proper insurance coverage.
m. Any other requirements determined necessary by the City; and
• n. A non-refundable application fee of$250.00
The applicant's proposal will be reviewed by the LRC. If the proposal is recommended for funding by the LRC
to the Miami Beach City Commission,and the proposal is approved by the Miami Beach City Commission,the
amount of grant will be estimated,a funding commitment will be issued and a reservation of funds will be made
for the project.
GRANT DISBURSEMENT
After a grant award agreement has been executed, and a notice to commence construction has been issued by
• the City, the grant amount may be disbursed as follows:
•
a. A payment equivalent to ninety percent (90%) of the total grant award, upon substantial
completion of the of the rehabilitation project. (as certified by the Owner's Inspector).
• b. The remaining (final) ten percent (10%) of the grant amount shall be paid upon compliance
by the applicant and/or general contractor, with the following:
(1) Receipt by the City of a final.Certification of Completion; and
(2) Approval and acceptance of the rehabilitation work by all the governmental agencies
and authorities having jurisdiction over the project, including the issuance of a
Certificate of Completion or Certificate of Occupancy, as applicable; and
(3) Receipt and approval by the Department of Development, Design and Historic
Preservation of a certified statement showing that the property is free and clear of
mechanics, materialmen's or any other type of liens of obligations relating to the
construction of the project.
Item(3) must be submitted by the applicant within-thirty(30) days from the date when a Final
• Certificate of Completion is issued.
c. In a manner requested by the applicant and approved by the City.
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4. Cancellation and Refund of Matching Grant
At its option, the City reserves the right to cancel and terminate the Matching Grant Agreement, and,
if applicable, request the return of all or a portion the matching grant award, sending a written,
certified notice of cancellation to the applicant at his/her mailing address if: (1) for a period of 30 days
from the notice to commence work, the applicant shall have- failed or refused to cause the
commencement of physical rehabilitation work on said property,or,(2)if the applicant failed or refused •
to complete such work within a time specified in the City's documents;or(3)if the City determines that
the purposes of the grant have been rendered impractical of fulfillment.Any events of default pursuant
to any applicable contract or law,will constitute a default to the terms and conditions of the Program.
The City's failure to exercise any rights or remedies to which it is entitled hereunder, shall not be
deemed a waiver thereof.
Applicable Fees:
An application fee of$250.00 is due at time of submission of the application to the Department of
Development, Design and Historic Preservation.
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LOAN REVIEW COMMITTEE
•
This Section sets forth the role and responsibilities of the City's Loan Review Committee (LRC).
Members
The Loan Review Committee shall consist of five (5) members as follows:
• City Manager or a designated representative of the City Manager's Office;
' The Development, Design & Historic Preservation Director; and
' Three members from different private Lenders with offices located in the City, appointed by the City
Commission to serve for a one (1) year term.
The members will elect a chairperson,who will serve at the will of the Committee.All meetings shall be called
and set by the chairperson as needed,and shall be open to the public.Three(3)voting members shall constitute
a quorum necessary to hold a meeting or take any action.
The Development, Design&Historic Preservation Director or a designated representative from the Economic
and Community Development Department shall act as a direct liaison between the applicant, the LRC and
representatives of the City.
Duties and Responsibilities of the Loan Review Committee
The Loan Review Committee shall:
* Study proposals and review the property qualifications and eligibility of the applicant.
• If necessary, interview the applicant to obtain additional information about the proposal.
* Evaluate proposals and recommend to the Miami Beach City Commission which proposals shall receive
approval (reservation of funds) and specify time frames and conditions for such commitment.
* Recommend to the Miami Beach City Commission the amount of the grant award per applicant and set the
reservation of funds for those projects upon the approval of the City Commission.
• • Review and make recommendations on any requests made to the City for an assignment or material change
in any of the terms of the Grant Agreement.
• Periodically review these Guidelines and make recommendations to the City Commission for action.
The Loan Review Committee will have, at its discretion, the flexibility to ease and/or modify the guideline
criteria, depending on the respective needs of each applicant.
Auulicability of City Resolutions and Regulations
All resolutions, rules, and regulations, enacted by the City regarding membership, attendance, removal of
members,voting and quorums, as amended from time to time, shall apply to the Loan Review Committee.
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DEFAULTS
In the event of default by the applicant on the City of Miami Beach's terms and conditions for the program, the
applicant shall reimburse the City the full amount of the grant funds received,at which point,the City shall have
no further financial interest in the subject property, nor any further responsibility, liability, duty or obligation to
the applicant,or any other party,and the City shall be entitled to recover all such costs arising out of the default.
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