93-20993 RESO Incomplete
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s ^ RESOLUTION NO.
W. tJl)
iV VA RBSOLUTION OF THB MAYOR AND CITY COIOlISSION
/\ " OF THE CITY OF MIAMI BBACH, FLORIDA APPROVING
THE GUIDBLIN1lS FOR THB HOTBL REHABILITATION
MATCHING GRANT PROGRAM AND AUTHORIZING THB
APPROPRIATION OF $500,000 IN LBGALLY AVAlLABLB
FISCAL YBAR 93-94 RESORT TAX PROCBBDS FOR
IMPLBMENTATION AND ADMINISTRATION OF THB
PROGRAM.
q3-20C;~
-~ WRBRBAS, the Hotel Task Force has spent considerable time
discussing methods of. increasing the inventory of transient hotel
rooms on Miami Be-.c)f';:and
WRBRBAS, the Mayor and City of Miami Beach Commission by
Resolution No. 91-20385 initiated a hotel rehabilitation loan
program ....ith the intent of providing interest subsidies to the
o....ners of older, smaller hotels to assist in the rehabilitation of
the properties; and
WRBRBAS, despite efforts of the city staff and the Miami
Beach Hotel-Motel Association to promote the City's loan program
through conferences and ....orkshops and other means, no applications
were received for the City's loan program; and
WRBRBAS, 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
WHBRBAS, the matching grant concept ....ould allocate up to
a dollar-for-dollar match based on a sliding scale formula; and
WHBREAS, the City Administration recommends the approval
and adoption of these Guidelines by the Kayor 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
WRBRBAS, 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 /
WHBR!A8, 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, THBREFORB, BB IT DULY RESOLVBD BY THB CITY
COIOlISSION OF TaB CITY OF MIAMI BBACH, FLORIDA, tbat tbe Guidelines
tor tbe Clty ot Mlaml Beacb Matcbing Grant Program for Hotel
Rebabilitation attacbe4 bereto as "Bxbibit 1" are bereby approved
an4 adopted, and tbat tbe appropriation ot $500,000 in legally
available tun4. .trom FY 93/94 Resort Tax proceeds for
lmp1ementation an4 a4ministration ot the program i. hereby
authori.e4.
PASSBD AlrD ADOPTBD THIS /..'5 -d- DAY OF '1/eU'llo bU'
, 1993.
MAYOR
ATTBSTI
CITY cLln
FORM APPROVED
J LEGAL DEPT.
By -::; e,y
Date /{-}. "1.l
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REGULAR AGENDA ~ DECEMBER 15, 1993
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RESOLUTIONS (CONTINUED)
'ROUGR CRUl, NOT FOR m~mmU1m~
E, COMMISSION MEMORANDUM NO. 711-93
A RESOLUTION OF THE HAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROVING THE GUIDELINES FOR THE HOTEL REHABILITATION HATCHING 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. HATCHING 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
HATCHING FUNDS RATIO BASED ON PER-ROOM COST. NOTE: EXISTING LOAN SUBSIDY PROCRAM 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
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 (I-year trial
program); applications to be reviewed by Loan Review Committee and approved by Cit~
Commission, (Vote: 5-lr;:
Commissioner Shapiro opposed; Commissioner Gottlieb absent.i?
i:;
North Beach Development Corporation Executive Director Ms. Ronnie Singer asked the;
Administration to determine if North Beach properties were in the City's histori~
property database and if not, that they expeditiously be surveyed and added to th!~
database so they could participate in the program. --
....~....
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F. CITY ATTORNEY COMMISSION MEMORANDUM NO. 712-93 25 i
A RESOLUTION OF THE HAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,~I
AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO CONTINUE WITH NEGOTIATIONS FOR'~':: I~:
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.)
Also see related Item R-6C.
ACTION: Resolution No, 93-20994 adopted, (Vote: 5-0;
Vice-Mayor Eisenberg away from table; Commissioner Gottlieb 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 &
Development Committee, South Pointe Advisory Board, and Planning Board. He advised
that they would be working with the Portoflno 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.
" RUUGH DUUTI,[iOl FOR msmmuIW;~
1,,:-;-----..
DECEMBER 15, 1993
-16-
CITY HALL 1700 CONVENTION CENTER DRIV,. ".1 BeACH FLORIDA 33139
~
CITY OF
MIAi\/U, BEACH
" .
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673.7762
COMMISSION MEMORANDUM NO. ! 11- q 3
TO:
Mayor Seymour Gelber and
Members of the City Commission-
DATE: December 15, 1993
FROM:
Roger M,
City Manager
SUBJECT:
.~
APPROVM. OP THB MATCHIHG GRAJI'l' PROGRAM POR HOTEL
RBDBILITATIOH
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 Hotei 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.
"8
...
-1-
AGENDA
ITEM
R-1-~
DATE ~2-IS-q3
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
.
-2-
:(9
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. 641=..93
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
November 17, 1993
FROM:
Roger M. Carlt...[) J . . /J /
City Manager "'bV1llktt4..IA:::::::-
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
~dministration 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
oer Room
Ratio of dollar match
to Private Investment
$6,000 to $8,000
$4,000 to $5,999
$2,000 to $3,999
1 to 1
1 to 2
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
Attachment
.
-2-
31
CITY OF MIAMI BEACH
MATCHING GRANT PROGRAM FOR HOTEL REHABILITATION
GUIDELINES
INTRODUcnON
The Matchla& Grant Program ror Hotel Rebabilltatlon is designed to provide direct matching grants to owners
of hotels in Miami Beach to rebabilitate their properties. The objective of the program is to encourage the
enhancement of the City's transient botel 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 unencumbered Resort Tax Funds to provide up to a 50 percent matching
grant to eligible hotel owners wbo qualify according to the criteria and conditions specified in the following
guidelines.
DEFINITIONS OF TERMS
1. Genem
In construing the provisions of these guidelines, words and terms not defmed herein shall be interpreted in
accordance with their normal dictionary meaning or in the absence thereof, customary usage.
Z. DeRnltlo...
The following are defmitions of various terms as used with respect to the federally-funded facade renovation
program:
a. .Q1I - Tbe 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 ofthe City and Dade County
including. but not limited to, the South Florida Building Code, tbe Zoning Ordinance, and
Property Maintenance Standards.
c. Cost-ner-Room - Overall project cost (inclusive of public space, landscaping and pbysical plant)
divided by the total number of guest rooms in the hotel.
.
d. DeveloDmenl Desim and Historic Preservation Division - The Division of the City of Miami
Beach designated to administer tbe Matching Grant Program
e. Desim Guidelines - Applicable guidelines of the City including, but not limited to, the Miami
Beach Design Review Guidelines, the Comprebensive Plan and the Zoning Ordinance of the
City of Miami Beach.
1
33
f. Elil!ible 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 defmed on page 4 under Eligible Rehabilitation Costs.
g. Matchillll 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. Oualified Elil!ible 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 S3OO,OOO/$100,OOO
liability coverage as required under the State guidelines, in case of injwy or damage to the
owner or general public.
i. Oualified Elimble Work Force - Use of an adequate number of skilled workmen/women who
are thoroughly trained and experienced in the type of rehabilitatioD work being performed and
who are familiar with the specified requirements and the methods needed for proper
performance of the work.
j. RelNlations - Applicable local, state and federal regulations and provisions governing program
administration.
k. Rehabilitation - The restoration of a structure or facilities in coDDeclioD with a structure, to a
condition of good repair and competitive position.
CITY'S REVIEW OF APPLICATIONS
The Department of Development, Design & Historic PreservatiOD shaD 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 Commlt1ee (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 haw been reviewed and recommended by the LRC to the Miami Beach City
Commission, shaD be eligible for a City of Miami lieach Matching Grant Program for Hotel Rehabilitation,
If the City dctennines that an application is not consistent with the criteria and requirements for eligibility, it
sbaD set forth in writing the reasons substantiating its fmdings. Such fmdings shall be forwarded to the applicant
, within 30 working da)S from the date the initial determination of ineligibility is made. Notice of disqualification,
ineligibility or deDial of grant award will be provided to each applicant by certified mail with a statement that
applicants who wish to contest the fmdings must request review of the decision in writing and postmarked or
hand delivered within 14 calendar da)S of receipt of the notice. The request for review must be med with the
Development, Design and Historic Preservation Division Director. Failure to 61e a request for review in the time
and manner specified shaD constitute a waiver of proceedings under these guidelines. The request for rc\iew
must specify, in detail, the basis for review and clearly describe disputed issues or material facts, A final
2
34
determination, including wrillen notice thereof, shaD 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 OUALIFICATIONS
A1J.y property to be considered for a matching grant, must meet the foUowing qualifications:
. The property must be located within the boundaries of the City of Miami Beach.
. The property must be a purely transient botel' or vacant upon application and operate as a transieot
hotel for a minimum of ten years after rehabilitation.
. The property cannot exceed two hundred and rlfty (250) hotel rooms in size upon application.
. Hotel guest rooms must conform to size requirement specified in the City of Miami Beach's Zoning
Ordinanc:c:
. The property must be in need of rehabilitation to comply with the applicable codes and ordinances
as detenniDed by a City inspection.
. The rehabilitation of the property must be physicaUy and rUlanciaUy feasible for such rehabilitation,
based primarily on the market potential of the property after rehabilitation; and, its projCcted income
sufficient to service the debt after aD operating expenses for the property are paid.
. The property was not previously assisted through' City programs.
. If applications have been submilled for more than one City program, the property is only eligihle for
one (1) award.
APPLICANT ELIGIBILITY CRITERIA
The applicant requesting a matching grant must meet the foUowing eligibility criteria:
. The applicant must have fee simple title to, or a rmn 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 simUar agreement with the present owner of the
building, sbowing 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 rtfteen (15) year leasehold interest in the property, demonstrated
by a lease contract or similar agreemenL
I TnulsleDt Hotel . A building containing a room or a group of rooms, with ingress or egress which mayor
. may not be through a common lobhy, intended for rental to transients on a day-ta-day, week-ta-week, or month-
ta-month basis not to exceed thirty (30) days during anyone stay; and, not intended for use or used as a
permanent dwelling.
· Hotel Unit Size RequIrements'
. Loc:aI Historic District . 200 sq.ft.
. All Other Areas - 15% of units @ :JOO..335 sq,ft.
85% of units @335+ sq.ft.
3
~15
. The appliCllllt must demonstrate to the satisfactioD of the City, its ability to provide any additiooal funds as
Deeded over and above the amount of the grant award to assure completioD of the rehabilitatioD work so that
the building being rehabilitated, will at a miDimum, comply with the applicable codes and ordinances.
ELIGIBLE REHABILITATION COSTS
A matching grant for hotel rehabilitatioD may be made oDly with respect to a property which Deeds to be brought
up to applicable codes and ordinances. However, withiu the limitations of the grant, the grant may also include
amounts for purposes other than meeting those requiremeDts.
ID additioD to those costs for rehabilitatioD to make the property comorm to the applicable codes and ordinances,
a rehabilitatioD grant may include funds to cover the costs described below.
Includable costs for labor and materials should be considered in the foUowiag order of priority:
. IncipieDt Violatioll$' ImprovemeDts to correct violations and/or coDditioll$ which may, in the OpiniOD of the
City, develop into hazardous conditioll$ and/or code violatioll$,
. Good and Readily Maintainable CoDditioD - ImprovemeDts Decessary to put the property and facilities in a
coDditioD. which requires a miDimal amount of mainteDance, and wheD appropriate, improvcmeDlS which
coose~ energy.
. General Property Improvemellts - ImprovemeDts which are in additioD to those required in applicable codes
and ordinances, including IaDdscaping. parking. public areas and other ancillary compoDellls. Such costs sbaD
DOt exceed twellty perceDt (2O'Jf>) of the total rehabilitatioD costs.
· Purchase, instaUatiOD or repair of futftichi"p
. Reasollable fees paid for professioDaI services in preparing work write.ups, cost estimates, working drawings,
specifications, coDStructiOIl coDtract documeDts, supervisioD and other designated tasks.
. An amount 1101 to exceed teD percellt (10%) may be included in the grant as a coDtingeDCY for any unforseeD
includable CODStructiOD costs.
NON.ELlGlBLE COSTS
The foUowiag costs 1101 eligible for the matching grant program:
. R__f1......i... of existiDs mortgages.
· I'uIdIaaiDc of the property.
. New coastrUctioD or expansioD of the size of the structure.
. Delioqueat taxes, insurance paymeDts, liens, cbarges and assessmeDts. It sbaD be the applicant's
. reapoaaibility to bring these paymeDts curreDt and to satisfy in CuD any liens, charges or assessmeDts
agaiDst the property prior to receiving grant fuDds from the City,
4
~6
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.
MatcblDl' 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 amoun~ to be provided by the City shall
include all costs necessary to bring the subject property into compliance with applicable codes and ordinances.
Matcbing 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
Per Room
Ratio or Dollar Matcb
To PrIvate Investment
$6,000 - $8,000
$4,000 - $5,999
$2,000 - $3,999
1to 1
1to 2
1to 3
Tbe City may increase such limit if unforeseen costs arise - after construction has commenced - that arc 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.
AvallabllllY 01 Funds
Matching Grant awards will be made on a flfSt-come-lirst-serve basis and shall be limited by tbe amount of funds
available to the Program.
Points or ABeement
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 or Work - Assure that the rehabilita.tion work shall be carried out promptly and efficiently through
a wrillen contract with the concurrence of the City, and completed within a certain time as established by the
City.
. In case of construction cost ovo:rruns, any additional funds needed to complete the project must be providcd
by the applicanL The City will not be obligated to fund the additional amounts.
. . Applicants may select their own contractor and do not havo: 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 havo: the right to inspect the rehabilitation work, contracts, materials, equipment.
payrolls and all records with respect to the project.
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. Applicant'. Inspector. The applicant sball be required to retain lbe services of a qua1ified 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 sucb certifications.
The applicant is solely responsible for compensating this inspector for any services provided.
. Insunnce . Maintain bazard, liability and flood insurance on tbe property as requited by industry standards.
. Conmel or Interest - Allow no member of tbe City Administration, City employee, public official or member
of the State or County Government, wbo exercises any functions or responsibilities in coDDection with the
administration of lbe 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 flDanced,
in whole or in part, with the proceeds of the matching grant program.
. Transfer or RellDanclu& the Propert)' - Sbould there be a transfer or refmauciDg of lbe prnperty, a lease of
the property is assigned or sublet, nr the property ceases to operate as a transient botel during or within ten
(10) years of the coDlpletion of the rehabilitation project, the owner or lessee of the property must make
provisions to reimburse the City of Miami Beacb all of the grant money received. .
PROCESSING APPLICATIONS AND DISBURSING FUNDS
AppllcaUoa Snbmllllou RequIre_is:
Under lbe program, an application for a matching grant must include the foUowiug:
a. Completed application form; and
b, Tbree F"mauciaI References
c. Proof of owuersbip (deed or sa1es contract) or long-term lease (lease agreement); and
d. Organizational doewueuts (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 melbods to correct
lbe deficiencies, as weD as an itemized cost estimate sbowing the probable constrUction cost
for eacb deficiency to be corrected; and
f, A copy of fiDa1 approved plans and specifications for tho rehabilitation of the project, by the City's
Building Department, Which include proof of satisfaction of all variances requited, and compliance
with an Ioca1 codes and standards. Plans must also comply with the requirements of the City's
PIaaaiag and Zoning Department; and
g.1f applicable, approval of the proposed improvemeots from lbe State of Florida Historic Preservation
. Officer (SHPO). For this purpose,tbe applicant will have to provide working drawings, photographs
and certification forms, as determined necessary by the SHPO.
b. AU applicable buildiag permits must be obtained, from lbe City's Buildiag Department, as required
by applicable City Ordiaance. 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 sbots
of the units whicb exhibit the need for work to be performed and tbe 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 suney; lUId
k. An EP A study or audit of the building.
1. Evidence, satisfactory to the City's Risk MlUIager, of proper insurance coverage.
m. Any other requirements determined necessary by the City; and
n. A non-refundable application fee of S2S0.00
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 tbe 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 bas been executed, and a notice to commence constrUction has been issued by
the City, the gralit amount may be disbursed as foUews:
a. A payment equivalent to ninety percent (90%) of the total grant award, upon substlUltial
completion of the of the rebabilitation project. (as certified by the Owner's Inspector),
b. The remaining ((mal) ten percent (10%) of the grant amount shall be paid upon compliance
by the appliCllllt and/or general contractor, with the foUowing:
(1) Receipt by the City of a (mal 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 tbe
construction of the project.
Item (3) must be submitted by the appliCllllt wit1Wr thirty (30) days from the date when a Final
Certificate of Completion is issued.
Co In a manner requested by the appliCllllt and approved by the City.
.
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4. Cancellation and Refund of MatehlDll 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 wrinen,
certified notice of caneeUation to the applicant at hisfher mailing address if: (I) fo, 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 reCused
to complete such work within a time specified in the City's doeumenls; or (3) if the City determines that
the purposes of the grant have been rendered impractical of fuIf'illment. Any evenls of default pursuant
to any applicable contract or law, will constitute a default to the terms and conditions of the Program.
Tbe City's failure to exercise any rights or remedies to which it is entitled hereunder, shall not be
deemed a waiver thereof.
Applkable F_
An application fee of $2SO.oo is due at time of submission of the application to the Department of
Development, Design and Historic Preservation.
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'l
LOAN REVIEW COMMI'ITEE
This Section sets forth the role aDd responsibilities of the City's loaD Review Comminee (LRC).
Memben
The LoaD Review Committee shall consist of five (5) members as foUows:
. City MaDager or a desigaated representative of the City MaDager's Office;
· Tbe Development, Desiga &; Historic Preservation Director; aDd
. Three members from different private Lenders with offices located in the City, appointed by the City
Coaamission to serve for a one (1) year term.
Tbe members wiD elect a chairperson, who wiD serve at the wiD of the CODiminee. All meetings shall be called
aDd set by the chairperson as needed, aDd sball be open to the pub6c:. Three (3) voting members sball constitute
a quorum necessary to hold a meeting or take aDY action.
The Development, Desiga &; Historic Preservation Director or a designated representative from the Economic
and Coaamunity Development Department shall act as a direct 6aison between the app6c:ant, the LRC aDd
representatMs of the City.
Dull_ aDd ResDOllllbllltles or the I Alan Review Committee
The LoaD Review Commitlee shall:
. Study proposals aDd review the property qua1i/ic:ations aDd e6gibility of the app6c:ant.
. If necessaty, interview the app6C811t to obtain additional informatioll about the proposal.
. Evaluate proposals and recommend to the Millllli Beach City Commission which proposals sball receive
approval (reservation of funds) and specify time frames and conditions for such commitment.
. Recoaamend to the Miaaai Beach City Commission tbe amount of the grant award per app6c:ant aDd set tbe
reservation of funds for those projec:ts upon the approval of the City Commission.
.. Review and make recommendatioas on any requests made to tbe City for aD assignment or material cbange
in aDY of the terms of the Grant Agreement.
. Periodically review these Guidelines and make recommendations to the City Commission for action.
The LoaD Review Commitlee wiD haw, at its discretion, the OexibiJity to ease and/or modify the guideline
criteria, depenclina on the respective needs of eacb app6c:ant.
AnnllcabllltY t1I CItY Raolullons and RetmlatJonl
411 resoIutioas, ruIeI, and regulatiODl, enacted by the City regarclina membership, atlendaDce, removal of
. members, voting and quorums, as lIlIlended from time to time, shall apply to the loaD Review Committee.
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DEFAULTS
In the event of default by tbe applicant on tbe City of Miami Beacb's terms and conditions for the program, the
applicant sball reimburse tbe City the full amount of tbe grant funds received, at whicb point, tbe City sball bave
no further flDancial interest in tbe subject property, nor any furtber responsibility, liability, duty or obligation to
the applicant, or any otber party, and tbe City sball be entitled to recover all sucb costs arising out of the default.
.
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