95-21826 Reso RESOLUTION NO. 95-21826
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING
THE PROGRAM GUIDELINES FOR THE MIDDLE BEACH
COMMERCIAL FACADE REHABILITATION PROGRAM.
WHEREAS, the City of Miami Beach's Three Year Consolidated Plan was adopted
by the City Commission on July 26, 1995; and
WHEREAS, the Middle Beach Commercial Facade Rehabilitation Program was
incorporated as a CDBG funded project in the City's Three Year Consolidated Plan; and
WHEREAS, adoption of the Program Guidelines of the Middle Beach Commercial
Facade Rehabilitation Program, is necessary for the implementation of this Matching
CDBG Grant Program; and
WHEREAS, The Middle Beach Partnership, Inc. has endorsed this Program; and
WHEREAS, the City Administration has reviewed the Program Guidelines, and
recommends their approval and adoption by the City Commission.
NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Guidelines for the Middle Beach
Commercial Facade Rehabilitation Program, are hereby approved and adopted.
PASSED AND ADOPTED THIS 21st DAY O' OVEMBER, 1'45
/
MAYOR
ATTEST:
FORM APPROVED
�-� LEALDPT
CITY CLERK
By
JGP/STP/jyg Date 451.7-5
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. 8544- 1 5
TO: Mayor Seymour Gelber and
Members of the City Commission DATE: November 21 , 1995
FROM: Jose Garcia-Pedrosa
City Manager '
SUBJECT: ADOPTION OF 1'ROGRAM GUIDELINES FOR THE MIDDLE
BEACH COMMERCIAL FACADE REHABILITATION PROGRAM
ADMINISTRATION RECOMMENDATION:
It is recommended that the Mayor and the City Commission approve the attached
Resolution adopting the Guidelines for the Middle Beach Partnership-City of Miami Beach
Middle Beach Commercial Facade Rehabilitation Program.
BACKGROUND:
The City of Miami Beach is in its 21st Year of Community Development Block Grant
Programs; however, this will mark the first year that an eligible area of Middle Beach, along
the 41 st Street commercial corridor between Alton Road and Prairie Avenue, will offer a
commercial facade rehabilitation program to eligible property owners and business owners.
On July 26, 1995 the City Commission adopted the City's Three Year Consolidated Plan
which included the project description and the budget of the Middle Beach Commercial
Facade Rehabilitation Program (Program).
This Program will provide financial assistance to property owners and business owners
in the eligible four block area of 41 st Street who are desirous of improving their building
facades, business signage, awnings, and the correction of all exterior code violations. The
matching funds for this project will leverage the $65,000 of Community Development Block
Grant (CDBG) Funds at a rate of 2 to 1 , providing for a minimum of $195,000 in public-
private commercial investment. The targeted businesses meet the U. S. HUD criteria.
AGENDA ITEM R I (;
DATE 1 —2-I (5
ANALYSIS:
Commercial Facade Rehabilitation Programs have been an important and successful
vehicle in the revitalization of the South Beach and North Beach areas of Miami Beach.
With the changing demographics and population shifts in all areas of the City of Miami
Beach, come changes in the areas of eligibility, coupled with the ability to effect positive
physical changes in commercial and residential areas city-wide.
The Middle Beach Commercial Facade Rehabilitation Program is a joint program of the
Middle Beach Steering Committee (now incorporated as the Middle Beach Partnership,
Inc.) and the City of Miami Beach Development Design & Historic Preservation Services
Department through the federal CDBG Program. The Program is administered by the City
of Miami Beach Middle Beach Director. The $65,000 allocated to this program shall be
matched with private dollars for rehabilitation work. There are no administrative dollars in
the budget of this Program. The CDBG funds will rehabilitate a minimum of four (4)
commercial storefronts, emphasizing the replacement of signage, awnings and the
correction of exterior code violations, by September 30, 1996.
The Middle Beach Commercial Facade Rehabilitation Program combines the program
guidelines of the successful North Beach Commercial Revitalization Program, with practical
and logistical changes based on the target area, as well as previous experience of the
Middle Beach Director.
CONCLUSION:
As a result of the assistance that the City has provided through Community Development
Block Grant funded commercial facade rehabilitation programs, important commercial
areas have been revitalized, resulting in an increase in the City's tax base; and an
enhanced quality of life for the City's residents. The continuation and support of
commercial rehabilitation programs by the City of Miami Beach is an integral part of the
continued public-private partnerships which foster investment and reinvestment in the City.
JGP/STP/jyg
CITY OF MIAMI BEACH
MIDDLE BEACH COMMERCIAL
FACADE REHABILITATION PROJECT
A Community Development Block Grant Program
Program Guidelines
Administered by the
Middle Beach Partnership
Jacqueline Gonzalez, Director
Table of Contents
Section Page No.
L Introduction 3
11. Definitions 4
IIL Program Overview 6
IV. Eligibility Criteria: Property and Applicant 8
V. Eligible Costs 10
VI. Design Guidelines 1 1
VII. Terms and Conditions 17
VIII. Application Procedures 21
IX. Receipt of Funds 23
•
Introduction
History
On June 4-6, 1994, the City of Miami Beach and the International Downtown
Association (IDA) conducted a visioning process for the 41st Street - Middle Beach
Business District. Community leaders, residents, property owners, business owners
and hoteliers in the 41st Street - Middle Beach area came together to explore the
issues which challenged the business district, and to make recommendations for a
brighter future for the area.
Consensus building workshops were held, and there emerged the shared belief that
the preeminence of 41st Street as Miami Beach's Main Street, and its connections to
Collins Avenue could, and should be reaffirmed. Forty-First Street, as the main
"gateway" to Miami Beach is an important thoroughfare, and a visitor's first
impression of the City, and therefore should be reclaimed as such through improved
design, landscaping, and enforcement.
One aspect of improved design is the beautification of the commercial facades and
the placement of aesthetic, business signs and awnings which conform to the City's
codes. Middle Beach property and business owners, and residents, have joined with
the City to form a public-private partnership to implement programs to assure
economic stability and growth, programs to assist the commercial district to achieve
noticeable physical change, while both preserving and enhancing the character of the
district. Public-private partnerships are critical components of community
revitalization. The critically successful commercial and residential rehabilitation
programs of the Miami Beach Development Corporation (MBDC) have helped to fuel
the reinvestment and restoration of many South Beach properties. Their programs
have been largely funded with Community Development Block Grant(CDBG) funds;
a critical component of ongoing local economic development and community
preservation initiatives in the City of Miami Beach.
The Middle Beach Commercial Facade Rehabilitation Project is a program designed to
assist business owners and property owners to rehabilitate their storefronts, signage
and awnings, as well as to foster investment and reinvestment in the eligible blocks
of 41st Street. The program stimulates private investment through the incentive of
matching CDBG dollars, and encourages rehabilitation projects which may have not
otherwise been undertaken.
3
•
Definitions
1. General
In construing the provisions of these guidelines, words and terms not herein
defined 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 federally-
funded programs.
a. City -The City of Miami Beach. Obligations of either an applicant or a
contractor, are obligations owed to the City of Miami Beach. The City
Manager shall award all grants in the Middle Beach Commercial Facade
Rehabilitation Program. The Middle Beach Partnership Director shall handle
the day to day administration of the Program.
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. CDBG - The federal Community Development Block Grant Program. Public
funds utilized by the City of Miami Beach for the Facade Rehabilitation
Program are derived from the CDBG Program under Title I of the Housing and
Community Development Act of 1974, as amended.
d. Housing and Community Development Division - The Division of the City of
Miami Beach Department of Development, Design, and Historic Preservation
Services designated to administer CDBG funds received from HUD.
e. Comprehensive Plan - The City of Miami Beach Comprehensive Plan and the
Middle Beach Streetscape Master Plan, as adopted June 1, 1995.
f. Design Guidelines - Applicable guidelines of the City including, but not limited
to, the Miami Beach Design Review Guidelines for Commercial Districts; the
Middle Beach Streetscape Master Plan, and the Middle Beach Commercial
Facade Rehabilitation Program Guidelines.
g. Eligible Costs - Those construction and architectural costs, building permit or
related fees as required by the City for the work intended to be carried out in
the rehabilitation of the property; and as further defined in Section V.
h. Grant -An outright disbursement of CDBG funds requiring no repayment.
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i HUD - The United States Department of Housing and Urban Development.
j. Lessee or Tenant - A person to whom the property to be rehabilitated is leased
or rented, or is given possession of the real estate for a fixed period of time.
k. Middle Beach Partnership - A community-business based economic
development organization responsible for the day to day administration of the
Middle Beach Commercial Facade Rehabilitation Project.
L Program - The Middle Beach Commercial Facade Rehabilitation Project.
m. 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. The contractor must be eligible under the provisions of any
applicable regulations issued by the Secretary of Labor or the Federal
Government, to perform rehabilitation work that is to be partially paid by
federal funds.
n. Qualified Eligible Work Force - Use of an adequate number of skilled workers
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.
o. Regulations - All applicable local, state and federal regulations; as well as all
provisions governing CDBG program administration.
P. Rehabilitation - The restoration of a structure or facilities in connection with a
structure, to a condition of good repair and competitive position.
q. Target Area - The designated geographic part of the City in which community
development activities are being carried out in accordance with federal
guidelines. Any property applying for, or being considered for a matching grant
must be within the 41st Street target area.
5
•
SECTION III
Program Overview
1. General
The Middle Beach Commercial Facade Rehabilitation Project is designed to
provide matching grants to property owners and business owners in the designated
target area, in order to rehabilitate commercial buildings, signage and awnings, in
order to spur economic and community revitalization. Matching grant funds assist
owners in improving the physical appearance of their properties, thereby contributing
to a favorable climate for investment and reinvestment in the Middle Beach-41st
Street area.
2. Matching Grants
Matching grants are not considered loans; therefore repayment is not required.
Grant funds utilized for the Commercial Facade Rehabilitation Project are derived
from the City's CDBG Program, under Title I of the Housing and Community
Development Act of 1974, as amended. All funds are released by the Department of
Housing and Urban Development. Matching grant funds must be disbursed for
eligible activities in accordance with federal regulations.
3. Review of Applications
The Middle Beach Director and City CDBG staff shall make the determination
as to whether or not the applicant and the property are eligible for a matching grant
as set forth in these guidelines. Eligible applications shall be forwarded to the City
Manager for his approval of the project, if the application is approved, the City
Manager shall issue a preliminary funding commitment, or Letter Advising of Award
Commitment will be issued, and a reservation of funds will be made for the project.
Upon design review approval, drawings, specifications, addenda and other
applicable construction documents will be estimated, and a final funding
commitment, subject to adjustments for approved change orders, will be issued.
Only applications which have been reviewed and approved shall be eligible for a
matching grant. If the Middle Beach Director, City CDBG staff, or the City Manager
determines that an application is not consistent with the criteria and requirements
for eligibility, they shall set forth in writing the reasons substantiating their 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 such letter must be postmarked or hand
delivered within 14 calendar days of receipt of the notice to the Middle Beach Director
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at 300 41st Street, Miami Beach, FL 33140. Failure to file a 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 determination, including
written notice thereof, shall be provided to the applicant within 20 working days of
receipt of request for review.
7
•
SECTION IV
Eligibility Criteria: Property and Applicant
Property Qualification Criteria
Any property being considered for a facade rehabilitation matching grant must
meet the following requirements:
a. The property must be a commercially zoned retail, service or office
building in the Middle Beach Target Area; and
b. The property must be physically and financially feasible for such
rehabilitation based primarily on the structural integrity of the building
and the market potential of the property after rehabilitation; and
c. The property was not previously assisted under any City CDBG
programs; and
d At the time the application for a matching grant is submitted, the
property must be inspected by the City and any code violations, must
be addressed prior to a final commitment of funds.
2. Eligibility of the Applicant
The applicant requesting a matching grant must meet the following eligibility
criteria:
a. The applicant must have fee simple title to, or a bona fide contract to
purchase fee simple title to, the property. In the case of a buyer, the
applicant must be able to demonstrate a firm financial commitment to
purchase the property, as evidenced by a sales contract or similar
agreement, whereby the applicant (buyer), and property owner (seller)
have agreed to the terms of the sale. The sales contract must specify
the property to be sold, type of deed, restrictions placed upon the use of
the property, closing date, price and financing conditions. The applicant
must be in possession of the property at the time of the order to
commence construction is issued; or
b. If the applicant is a lessee-tenant, applicant must possess a long-term
lease on the property to be rehabilitated. For the purposes of this
program, a long-term lease shall contain a specified period of time of at
least three (3) years. A lessee applicant must provide an affidavit of
permission from the property owner to make the proposed
improvements to the leased property; and
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c. The applicant must demonstrate the ability to provide any additional
funds as needed over and above the matching grant amount, at the
time of the estimates, to assure completion of the proposed
rehabilitation work.
d. The applicant shall have paid all due City, County, Federal and School
taxes, as well as any applicable impact fees.
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SECTION V
Eligible Costs
1. General
A facade rehabilitation matching grant may be awarded for eligible
improvements to the exterior of the property and correction of City code
violations.
2. Eligible Costs
In addition to those rehabilitation costs to correct code violations, a matching
grant may cover the costs described below:
a. Construction - Eligible costs for labor and materials are as follows:
(1) Removing, repairing, restoring or replacing exterior surface
materials including, but not limited to tile, stucco, wood siding,
aluminum, metal, stone or brick veneers.
(2) Painting and all preparatory work associated with painting such
as, but not limited to: pressure cleaning, patching and stucco
work.
(3) The removal of old awnings, specifically those which are not to
code, and their replacement with new awnings which meet code.
(4) The removal of old, specifically not to code, signs; and their
replacement with new signs which meet code.
(5) All exterior property elements visible to pedestrian or vehicular
public ways, including, but not limited to; doors, windows, fences,
entry gates,walkways and lighting.
3. Ineligible Costs
Only costs described above are eligible for matching grant funds. All other
costs are considered ineligible for the Middle Beach Commercial Facade
Rehabilitation Project.
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SECTION IV
DESIGN STANDARDS
1. General
A building's appearance is the first impression a customer has of a business;
and helps to create a positive and inviting physical image of a commercial district.
Design is just one element of a revitalization effort. It works in conjunction with
retention, recruitment and promotional programs to sustain business districts over
time. Design, however, is the means by which the greatest number of people
measure the viability of a community.
Properties being considered for a facade renovation grant must undergo design
review in order to assure that the proposed rehabilitation is consistent with the design
standards for the area, as well as assuring that the design proposed meet all
applicable City zoning and building codes. In design review architectural drawings
and renderings, paint colors-both base and trim, awning design - both material and
color, will be examined for consistency to guidelines and City code. They will further
be examined with regard to the aesthetics, appearance, safety and function of the
building in relation to the site, adjacent buildings and surrounding community.
These guidelines may restrict individual options, however, they will promote a
more cohesive and harmonious design of the commercial area as a whole.
2. Overview of Design Guidelines
The Middle Beach Commercial Facade Rehabilitation Program's approach to
rehabilitation allows design parameters which are flexible and practical, yet
technically responsible and consistent. These parameters encompass the following
design principles:
a. Facades:
The traditional storefront consists of three basic parts: the storefront
with an entrance and display windows, the upper facade, and the cornice that caps
the building. Each component may appear in various sizes, shapes and styles, but
these are components of most building design. Large windows dominate the first floor,
while upper floor windows are generally smaller and regularly spaced. Cornices are
less common in South Florida, however they are often replaced by a decorative roof,
band, or other detail applied to the surface which caps the parapet wall. The following
guidelines apply to facades typical in Miami Beach.
1. Stucco facades are the most common and appropriate here in South
Florida. Facade veneer materials such as brick, flagstone, and wood are
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discouraged if not original.
2. The removal of masking of any original material or distinctive
architectural detail, particularly if it dates back prior to 1960 is
discouraged.
3. In rehabilitation, it is important to restore or recreate original
building details.
4. Architectural features should be given prominence through the use of
color and light.
5. Windows are an architectural feature of great importance to the
facade. They create a visual rhythm of building openings and displays.
They allow buildings to "breathe" and offer a more friendly, human scale
to the business districts. They also provide natural security for
businesses. Their original proportion nd configuration to the total
building should be preserved, or restores in the case of previous building
alterations.
6. Mechanical appurtenances attached to the building facade, such as
equipment for security grills, should be concealed by an awning or other
housing consistent with the building's architecture and color.
7. Air conditioning units must not be visible along streetfronts. Any
existing a/c units should be screened from view with awnings.
Replacements, and or new installations, should be restricted to the rear
of the building or the roof- however must not be visible from the street
front.
People evaluate one another almost instantaneously based on appearance. Likewise,
pedestrians and drivers (over 50,000 cars per day) on 41st Street evaluate the
business district and the surrounding area based on the appearance of its street-front
properties.
b. Building Elevation - The relationship between entrances, shop windows,
upper stories and building cornices is of critical importance to the symmetry of
design, clarity of entrance, and appearance of the building as a whole.
1. If possible, remove building siding to expose and restore original
architectural elements.
2. Do not alter roof type or design.
3. Restore cornice.
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4. Existing shop windows shall not be eliminated or decreased in size.
Much of the architectural quality of a building as a whole comes from
the window and storefront proportions. Whenever possible, original
windows, trim, and sash should be retained. If placement is necessary,
materials - similar in size and proportion - should be used.
c. Surface Materials - The surface of a building is a key factor in its appearance
and relationship to adjacent buildings and the commercial district as a whole.
1. If possible, retain and restore original surface building materials. This
includes the removal of new facades, metal and wood siding, and veneers
- surface materials which were oftentimes used to "update" or alter a
building's appearance.
2. The surfaces of multiple storefronts within a larger building must be
consistent from storefront to storefront.
3. Air conditioning units located above entry doors, in display windows, or
second story windows cannot face the street. They should be relocated
to the rear of the building, or mounted on the roof.
4. The use of ceramic tile - simple in design - on stucco bulkheads is
encouraged to reduce maintenance and improve the overall appearance
of the building. Tile should not be used, however, to cover vitrolite,
keystone, marble or other historic material.
d. Paint Color - The color of a building not only helps to establish a feeling about
the business, but also reinforces the individuality of the building and its relationship to
the commercial area as a whole. The use of colors included in the City of Miami
Beach's official paint color chart is required, and paint colors should reflect the
inherent style of the building's architecture.
1. Paint color shall be used to highlight architectural forms and details.
Paint color should not however, be used to create architectural
enhancement which does not exist. Special or unusual paint treatment,
such as tromp l'oeil will be reviewed on a case by case basis.
2. The color relationship between the adjacent buildings should be
compatible, but not necessarily identical.
3. Where a larger building contains more than one storefront, the building
shall have integrity of color. The building shall not be subdivided to
reflect individual storefronts.
4. Pastel colors are encouraged. Dark earth tones and bright colors are
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highly discouraged.
5. Stone or tile surfaces shall not be painted. Where stone or tile surfaces
have been painted, they shall be required to be stripped, using
appropriate water pressure or chemical methods, and re-sealed.
d. Awnings - Not only do awnings provide protection from rain and sun, but they
also have a positive impact on the appearance of the storefront and building,
tending to encourage pedestrians closer to shop windows and entrances.
Awnings, when properly placed, add charm, personality and individuality to
buildings.
1. Unless physically unsuited, buildings in the business district should have
awnings.
2. Awnings shall be a consistent height and depth to form a continuous
canopy along the sidewalk.
3. Variation in awning shape, for reason of compatibility with architectural
form or detailing, is acceptable as long as the awning can be integrated
with the standard awnings on either side.
4. A building containing multiple storefronts should have one continuous
awning the full length of the building.
5. Awning materials, construction, and installation, must meet the
standards of the City of Miami Beach Building and Zoning codes.
6. Where an awning is to be replaced, rusting or peeling awning support
structures must be cleaned and repainted. Rotted or broken supports
must be replaced. If a new awning support system is to be added,
simple pipe systems are preferred over decorative ones. Awnings should
be supported by poles connected to the building underneath the awning.
7. Solid color, or broad striped awnings are preferred. Narrow striped,
flowered or other patterns are not allowed.
8. Corner buildings should have awnings that continue around the corner
for compatibility with building form and pedestrian patterns.
9. Backlit awnings of translucent vinyl are not permitted.
10. Awnings proposed for historic buildings shall utilize historic awning
shapes. New "quarter-round" or "waterfall" awnings may not be
appropriate for historic buildings.
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e. Signs - Simple signage is far more effective than excessive signage. Excessive
signage tends to confuse the customer and detract from the overall
appearance of the business. This is especially true on commercial corridors
where traffic moves quickly ( as is the case on 41st Street ). Signage should
provide the potential customer with specific business information in a simple,
straight-forward and attractive manner. Information on signage shall
adhere to the City of Miami Beach's Building and Zoning Codes.
1. All excessive signage, and signage not to code shall be eliminated.
2. If the building facade contains architectural elements whose purpose is
to frame or otherwise highlight signage, this area of the building should
be utilized for signage.
3. Signs must not obscure architectural features or detailing.
4. Signs should be constructed of individual channel letters.
5. Box signs are prohibited .
6. Small, secondary signage under awnings or on glass (door or window) are
allowed as per code.
f. Lighting - Proper lighting is one of the most critical elements of a positive
business image during evening hours. Even if a business is closed during the
evening, lighting of the building, signage, entrances, interior and window
displays is a powerful marketing tool.
1. Typically elements which need illumination include signage, entrances,
window displays, and the building interior.
2. Buildings that posses attractive and unique architectural details should
be enhanced with discreet decorative lighting.
3. The second story interiors of two-story buildings should be illuminated in
the evening. Light coming from second floor windows provides a
comfortable feeling of presence in the neighborhood, and eliminates the
deserted feeling many commercial areas have after businesses are
closed.
4. Alleys and rear or side entrances should have lighting which remains on
during evening hours.
5. Illumination on buildings shall only be white light.
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Note: For a more detailed description of the design parameters
applicable to the Middle Beach Commercial Facade
Rehabilitation Program, please refer to the City of Miami Beach
Design Review Guidelines for Commercial Districts.
3. Application for Design Review
The applicant shall obtain a Design Review application from the office of
Planning, 1700 Convention Center Drive, 2nd Floor, Miami Beach, FL 33139,
telephone (305) 673-7550. The Planning Director or his designee shall review the
project for compliance with applicable City of Miami Beach design standards.
All projects shall be subject to a review under the Design Review procedures.
No rehabilitation under this program shall commence without the written approval of
the Design Review Board, or as provided for in the City's Design Review procedures.
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SECTION VII
TERMS AND CONDITIONS FOR A FACADE RENOVATION GRANT
1. General
This section sets forth the required terms and conditions for a facade renovation
grant.
2. Grant Application Review and Grant Amounts
Federal CDBG Program funds are limited. Therefore, all rehabilitation projects will
be evaluated for feasibility and economic impact. Complete rehabilitation of building
facades, signage and awnings, as well as the correction of existing code violations is
encouraged. Applications are considered on a first come, first served basis; however,
those applicants submitting requests for funding that represent a maximum level of
renovation, shall be given priority.
Grant funds are available for eligible and approved projects on a $2 to $1 funding
match. Quite simply, the applicant must agree to spend $2 of their money for every
$1 of grant money.
The City Manager shall approve all grants under the Middle Beach Commercial
Facade Rehabilitation Program.
3. Points of Agreement
The applicant shall agree, as required by the related documents, to abide by all
applicable City, State and Federal regulations, and the following terms and conditions:
a. Work Write-ups - Assure that clearly written, well- organized work write-ups
are prepared which precisely define the rehabilitation work to be undertaken. The
Program's technical specifications should be included, or incorporated by reference in
the work write-up.
b. Cost Estimates for Work Specified - A cost estimate of reasonable project
costs which is prepared by a licensed contractor, architect or engineer, and is based
on the scope of work and technical specifications contained in the work write-up shall
be provided to the Program Administrator.
c. Contractor Selection - Under the Program, the applicant may select his/her
own contractor and does not have to use formal competitive bidding procedures.
However, the applicant must secure written estimates from three qualified
eligible contractors. The written estimates must be based on work write-ups that
17
•
precisely define the rehabilitation work to be undertaken. The applicant must provide
the Program Administrator with copies of these estimates, and s/he shall review the
estimate provided by the contractor selected for reasonableness of cost, based on the
three estimates received.
d. Ineligible Contractors - The applicant may not award any contract for
rehabilitation work to be paid for in whole or in part with federal grant funds, to any
contractor or sub-contractor who, at the time of contract execution, is ineligible
under the provisions of any applicable regulations issued by the Secretary of Labor
or the Federal Government, to receive such award.
e. Federal Labor Standards - Among these standards is the requirement that all
laborers must be paid at wages not less than those contained in the official wage
determination of the Secretary of Labor for each classification of work. A Davis
Bacon wage determination shall be requested of HUD for the Middle Beach
Commercial Facade Rehabilitation Program, and a copy of the determination
governing the wage scales shall be supplied to each applicant approved for a grant.
A preconstruction conference must be held with the contractor, applicant, Middle
Beach Program Administrator, and City representatives in order to address the
extent of the work to be performed, the schedule, special conditions, labor standards
provisions, HUD requirements, and any specific concerns or questions any of the
parties may have.
f. Completion of Work - Rehabilitation work shall be carried out promptly and
efficiently through a written contract let with the concurrence of the Middle Beach
Program Administrator, and completed within a specified time as established by the
Architect and/or Engineer and the Program Administrator. In case of construction
cost overruns, any additional funds needed to complete the rehabilitation must be
provided by the applicant, unless the Middle Beach Program Administrator agrees, in
writing, through the approval of change orders, to increase the grant in accordance
with the requirements specified in these guidelines.
g. Access to Property and Records - The Middle Beach Program Administrator,
the City and HUD shall have the right to inspect the rehabilitation work, contracts,
materials, equipment, payrolls and all records relative to the project.
h. Property Inspection - The grantee shall retain the services of a qualified
inspector (i.e., licensed architect or professional engineer) who must periodically
inspect the property and certify to the Middle Beach Program Administrator that the
percentage of work has been completed in accordance to plans and specifications.
The American Institute of Architect's standards, or equivalent, must be used for such
certifications. The Middle Beach Program Administrator must review and approve
each request for payment to the contractor for work completed. The applicant shall
not issue payment to the contractor unless the Middle Beach Partnership Director
has reviewed and approved the contractor's request for payment.
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i Insurance - The grantee must maintain hazard, liability and flood insurance
on the property to be rehabilitated, in accordance with the requirements of the
City.
j. Property Alterations - The grantee must assure that no changes will be made
to the exterior of the property for a minimum of three years following completion of
the rehabilitation of the building unless said changes are approved, in writing, by
the Middle Beach Program Administrator. If any changes are made without the prior
written consent of the Middle Beach Program Administrator, the grant amount will
become due and payable in full.
k. Transfer of the Property - If the property is sold within three years following
completion of the rehabilitation, the applicant must specify, as a condition in the
agreement of sale, that no changes may be made to the exterior of the property
unless said changes are approved, in writing, by the Middle Beach Program
Administrator. This condition shall set forth a specified time of not less than the
time remaining on the three year requirement initially imposed upon the applicant.
The applicant shall notify the program administrator, in writing, of his/her intention
to transfer the property and shall permit the program administrator to review all
applicable sales documents in order to ensure compliance with this requirement.
1. Maintenance of the Property - The grantee must keep the property in good
condition and repair and is not to remove or demolish any improvements thereon in
accordance with applicable terms and conditions. To permit the Middle Beach
Program Administrator, the City and HUD to inspect the property and all records
during the term of the grant agreement.
m. Conflict of Interest - The grantee shall not allow any member of the City
Administration, City employee, public official, or member of the Federal, State,
Local or County Government, who exercises any functions of 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 paid for in
whole or in part with federal grant funds. The conflict of interest provisions applicable
to federally funded programs shall be interpreted broadly to apply to virtually all
apparent conflicts of interest. HUD has the authority to grant exceptions but the
regulations do not provide anyone with a right to an exception. In order to ensure
that HUD-assisted rehabilitation is carried out in accordance with generally
accepted construction standards and that rehabilitation funds are expended
economically and efficiently, the Middle Beach Program Administrator must be
advised of any and all apparent conflicts of interest.
n. Equal Opportunity - The applicant shall abide by all federal, state or local
regulations relative to equal opportunity to all persons, without discrimination as to
race, color, creed, religion, national origin, sex, marital status, age, handicap or
familial status.
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SECTION VIII
PROCESSING APPLICATIONS AND DISBURSING FUNDS
1. Application Submission Requirements
An application for a facade renovation grant must include the following:
a. Completed application form; and
b. Proof of ownership; and
c. Organizational documents and certificate of good standing (if other than
individual ownership); and
d. Lease agreement(if applicant is a Lessee); and
e. Property information (legal description); and
f. Description of proposed rehabilitation work - A written description of the
rehabilitation work intended to be accomplished to renovate the property,
identifying each item and setting forth methods to correct the deficiencies.
The applicant's request for a facade renovation grant will be reviewed by
the Housing and Community Development Division staff, and then
forwarded to the City Manager for final approval. If the request is
approved, the grant amount will be estimated, a funding commitment will
be issued, and a reservation of funds will be made for the rehabilitation
project by the City Manager.
After the application is approved, the applicant shall provide:
g. An itemized cost estimate, prepared by a licensed architect or engineer,
by unit price, showing the estimated construction cost for the work to be
performed, which is based on the scope of work and technical specifications contained
in the work write-up; and
h. Two (2) sets of to-scale plans of the proposed project that include: site plan,
floor plans, elevations, and a survey, if applicable; and
i Proof of required insurance.
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2. Grant Disbursement Requirements
All applications approved for participation in the Program shall be awarded in strict
accordance with the terms and conditions specified in the Program Guidelines.
However, before a final grant award agreement is executed, the Middle Beach
Program Administrator must receive and approve the following:
a. Approval of the proposed improvements from the City's Design Review Board
and/or staff, as applicable.
b. A copy of final approved plans and specifications for the rehabilitation of the
property by the City, which includes proof of all variances required, and
building codes and zoning regulations.
c. Building permits must be obtained from the City as required by the applicable
City Ordinance. Other necessary permits and applicable approvals from any
other governmental authorities must be obtained, if required.
d. Copy of executed construction contract entered into by the applicant and a
licensed General Contractor,which includes the following:
(1) Roles and responsibilities of all parties.
(2) Construction schedule (commencement and completion dates).
(3) Contract price.
(4) Scope of work.
(5) Provisions for inspections and payments to the contractor for work
completed.
(6) Provisions for a holdback of funds.
(7) Change order procedures.
(8) Procedures for resolving disputes.
(9) References to any work which will be performed under warranty
(including the terms and conditions of such warranties).
(10) All essential construction documents such as the work write-up and
technical specifications.
(11) Reference to all applicable federal regulations and standards.
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(12) Evidence of proper contractor insurance coverage.
(13) If necessary, a revised cost breakdown, to include direct and indirect
costs, on the proposed work.
e. Proof that the property has been inspected by the City for building/code
violations.
f. Evidence that the building's roof is in weather-tight condition and that the
building is free of life infestation of termites. If such evidence cannot be
provided, the applicant must assure that the items will be corrected under the
Program.
3. Grant Disbursement
After a grant award agreement has been executed by the City Manager, and a notice
to commence construction has been jointly issued by the Housing and Community
Development Director and the Chief Building Official, the grant amount may be
disbursed as follows:
a. During the construction phase - Not more often than twice a month, a
payment equivalent to ninety percent (90%) of the percentage of work
completed or materials to be ordered, may be issued. However, if the grant
amount or portions thereof, is to be disbursed during the construction
phase, such disbursements shall occur only after ninety percent (90%) or more
of the applicant's funds have been disbursed.
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) Completion of all rehabilitation work and receipt by the Program
Administrator 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 Housing and Community Development
Division of all documentation for compliance with Federal Labor
Standards; and
(4) Receipt and approval by the Middle Beach Program Administrator of
a certified statement showing that the property is free and clear of
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Items (3) and (4) must be submitted by the applicant within thirty (30) days from the
date when a Final Certificate of Completion is issued.
c. Upon Construction Completion - A lump sum payment for the total grant
amount may be issued to the applicant upon completion of all rehabilitation work and
compliance with the requirements set forth in (b) above. In this instance, the lump
sum amount disbursed will constitute a "reimbursement" to the applicant (rather
than a payment to the general contractor), for eligible rehabilitation costs incurred
and already paid.
4. Cancellation and Refund of Grant Payments
At its option, the City Manager reserves the right to cancel and terminate the grant
award and, if applicable, request the return of the used funds by sending 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 grant agreement documents; or (3)if it is determined that the purposes of the
grant have been rendered impractical of fulfillment; or (4) if the applicant failed to
comply with applicable local, state or federal regulations.
Any events of default pursuant to any applicable contract or law, will constitute a
default to the terms and conditions of the Program. The Middle Beach Administrator's
failure to exercise any rights or remedies to which it is entitled hereunder, shall not be
deemed a waiver thereof.
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