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HomeMy WebLinkAboutR-00-0412J-00-408 5/11/00 7] RESOLUTION NO • GO- 412 A RESOLUTION OF THE MIAMI CITY COMMISSION WITH ATTACHMENT(S), APPROVING THE GUIDELINES AS SET FORTH IN THE COMMERCIAL REVITALIZATION PROGRAM, ATTACHED HERETO AND MADE A PART HEREOF AND ESTABLISHING A COMMERCIAL REVITALIZATION PROGRAM TO IMPROVE AND ENHANCE CERTAIN COMMERCIAL CORRIDORS LOCATED IN THE ECONOMIC OPPORTUNITY ZONES OF COMMUNITY REVITALIZATION DISTRICTS. WHEREAS, the City Commission directed the Administration to develop a Commercial Revitalization Program ("Program") similar to the Program operated by Miami -Dade County to improve and enhance the physical and economic framework of older commercial corridors located in the Economic Opportunity Zones of Community Revitalization Districts; and WHEREAS, the Department of Community Development reviewed Miami -Dade County's Program guidelines and developed a Program similar to that of Miami -Dade County; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. C'am '��<E CITY COMBESSION MEETING OF MAY 1 9 2000 Resolution No. Section 2. The guidelines asset forth in the Commercial Revitalization Program, attached hereto and made a part hereof, are hereby approved, and a Commercial Revitalization Program to improve and enhance certain commercial corridors located in the economic opportunity zones of community revitalization districts is hereby established. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.'/ PASSED AND ADOPTED this 11th day of May 2000. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-33, Since the Mayor didnot apprNnl of this legislation by signing it in the desiGynated trot lcdi-'d,, emid 'Wr"sus 610- r q',v becomes effective with the elapse oft ,n (10) day, t, m the M,�a � I Corn �1l s� ; � , 6011 regarding same, without the Mayor ercisi vel WALTER J. FOEMAN CITY CLERK APPROVED FORM ANDECTNESS: VILRLLO NEY W43 : RCL : BSS �i If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 2 of 2 ' " • 0 Commercial Revitalization Program The Commercial Revitalization Program is a comprehensive approach to improve and enhance the physical and economic framework of older commercial corridors located in the Economic Opportunity Zones of Community Revitalization Districts. The concept of this special economic development program is to provide technical and financial assistance to property owners and merchants to stabilize local businesses and create employment opportunities for City of Miami residents. The following guidelines establish minimum working parameters from which to evaluate projects seeking assistance .from the Commercial Revitalization Program and govern the processing of Commercial Revitalization Program Grant requests: a) All applications will be reviewed and approved by the Community Development Loan Committee. b) The maximum allowable grant is $50,000. The applicant must provide a 30% match to participate in the program. c) The applicant is responsible for all additional costs above the approved project amount (maximum City contribution is not to exceed $50,000). d) All properties must be located in the City of Miami. e) Priority will be given to businesses located in the Economic Opportunity Zones identified in the Consolidated Plan. f) All Applicants must create or retain jobs for low to moderate income residents of the City of Miami (said requirement will remain in effect for five (5) years following grant approval). g) If CDBG-assisted properties are sold within five (5) years from the date of receiving assistance, the Grantee must return to the City, on a prorated basis, any grant funds provided on a declining percentage basis (e.g. 100%, 80%,60%,40%,20%). h) Property owners and/or commercial/industrial lease holders are eligible to apply for a Commercial Revitalization Program Grant.. i) An absent property owner must obtain tenant consent and be in good standing (i.e. property taxes must be current). j) Commercial/industrial lease holders must receive approval from the property owner. Page 1 of 6 k) The property owner or lease holder must provide City of Miami Department of Community Development financial statements, certified tax returns; and other financial information deemed necessary. 1) A project is defined as any commercial or industrial building located within a tract or parcel of land. In cases where a building contains multiple storefronts, the entire building is considered to be a single project. Buildings that are legally subdivided with separate ownership may be considered individual projects. m) Eligible expenses include construction costs for work on exteriors, correction of interior and exterior code violations and improvements to meet requirements of the Americans with Disabilities Act, if deemed necessary for the completion of the project and infrastructure improvements such as parking and landscaping. n) The Applicant will enter into a contract with the City of Miami, which retains the authority to revise the contract as required. o) The Applicant must comply with applicable Davis -Bacon and Labor Standards. p) The City will disburse project funds upon a submittal of a certificate of completion, certificate of occupancy and all other compliance information required by CDBG guidelines. q) The applicant is responsible for all fees and costs incurred prior to project approval. r) The City is not responsible for any cost overruns in excess of the approved contract amount. s) To every extent possible, the City will develop a consolidated application process for those entities also applying through the Miami -Dade County Commercial Revitalization Program. The joint application process does not preclude the applicant from complying with application requirements that may be specific to the City of Miami Commercial Revitalization Program. The goal of the program is to improve the physical appearance of businesses, create job opportunities for low and moderate income City of Miami residents and enhance the impacted neighborhoods. Page 2 of 6 �� 4112 DESIGN STANDARDS Design standards help to determine the nature and scope of exterior and interior rehabilitation. The design concept for the commercial property to be rehabilitated must meet the specific architectural style that reflects the character considered appropriate for the building and the neighborhood. The design concept must be approved by the appropriate government agencies and all permitting and zoning requirements must be met, including conformance with specifications of the South Florida Building Code. Some areas have cohesive design themes that lend to the development of architectural design standards and a unified approach. Other areas may not contain cohesive design themes and the buildings are not always contiguous. The approach in the latter areas is to undertake rehabilitation that enhances the building's individual architectural design elements. However, the program concept is intended to impact the commercial corridors located in the Economic Opportunity Zones and to maximize the potential visual impact of the rehabilitation projects in the Zones. The comprehensive design of the program is intended not only to revitalize individual buildings, but also to encourage pedestrian movement by introducing the use of exterior pedestrian -oriented elements such as, landscaping, shading devices, and street furniture. Buildings that are fifty (50) years old or older will be subject to review by the City of Miami Planning Department to determine if the facility is. of historic or architectural significance. Buildings that fit these criteria will be subject to the standards of the Secretary of Interior and must contract an architect experienced in historic preservation for the project. Commercial revitalization projects of historic structures may also be eligible for historic preservation funding. SELECTION OF AN ARCHITECT After project approval, the applicant is responsible for selecting a qualified architect for specific project. The selection of an architect must conform to approved procurement requirements and, will be based on professional qualifications, knowledge and experience of local architecture and design cost. The Owner must request a minimum of three (3) proposals prior to selecting the architect. It is anticipated that the architect's fee shall he between 10% -15% of the owner/general contractor contract amount. It is the owner's responsibility to conduct a review of the architect's background and to follow up on project references. To ensure the quality of the product, all drawings must contain specifications of all material used in the construction of the project. The architect is responsible for preparing sketches, working drawings, specifications, processing, permitting and revising plans; providing as build drawings, preparing necessary information and rnaterial, preparing cost estimates and obtaining the required permits. The architect is also required to conduct regular site inspections (once a week minimum), prepare field reports, review pay Page 3 of 6 % 1 ?a A 0 requests and attend meetings as necessary. SELECTION OF A CONTRACTOR The applicant shall select a qualified General Contractor to complete the project and the selection process must conform to approved procurement requirements. The applicant must obtain a minimum of three (3) proposals. The City of Miami will also conduct a cost analysis of the project, which will not be made available to the applicant or bidding contractors. The City will review the proposals and the applicant can accept any proposal that is within 10% of the City's estimate. The applicant is responsible for reviewing the General Contractor's background, conducting a follow up on references and entering a standard A.I.A. General Construction/Owner Agreement with the General Contractor. The City of Miami has the right to terminate and/or refuse to receive construction services from any entity and any contractor that breaches this contract will be automatically debarred from future government contracts. The Owner/Contractor agreement shall contain all applicable federal requirements, including compliance with Davis Bacon Act provisions, Affirmative Action mandates and use of lead-free and mercury -free paints. The City of Miami will monitor the project and disburse eligible payments to contractors (less a 10% retainage that will be held until final certificates of completion are obtained). The disbursement of funds to a contractor requires approval from the architect and applicant. The City of Miami must approve all work completed outside the contracted scope of work (as per Owner/Contractor agreement and will not honor payment requests for said activities without prior approval, even if the request has come from the applicant. Any general contractor selected for a commercial revitalization project must be licensed, insured, and bonded. The City of Miami reserves the right to revise the contract between the General Contractor and the Applicant, as it deems necessary APPLICATION REVIEW AND SELECTION PROCESS The City of Miami Department of Community Development will review all applications and screen them for completeness and eligibility under program and federal guidelines. Following the Staff review, eligible applications will be forwarded to the Community Development Loan Committee for approval and then forwarded to the City Commission for final approval. Funds will be awarded on a first come, first served basis until identified funding for the program has been depleted. The following criteria will be implemented during the review process: a) Applications that are incomplete or illegible will not be given funding consideration. Only applications that clearly meet program guidelines will be recommended for further evaluation. Page 4 of 6 b) Eligible applications will be reviewed and evaluated based on property location, need for rehabilitation, visual impact, and cost. c) Applicants will be notified in writing whether the proposed project has been approved or rejected. d) Architects will develop and finalize conceptual drawings into final working drawings and specifications. The revisions will include a cost estimate. e) A federal wage determination for the project will be requested. f) Architect will hold a pre-bid meeting, with contractors and staff at the construction site to review scope of work and answer questions. g) The City of Miami will conduct a pre -construction conference with the applicant, architect, and applicant -selected contractor. The City of Miami will explain applicable Local, State and Federal regulations (including the Davis -Bacon Act) and the process to disburse of funds. h) A Notice to Proceed and Notice of Commencement for the project will be I i) Inspections to monitor for compliance with Davis -Bacon and other regulations, as well as construction progress, will be conducted periodically. j) Invoices will be reviewed and verified for completed work against requests for payment. Releases' of liens and paid receipts for material must accompany invoices for payment. Applicant and Architect signatures will be required before payment is released. Applicant and Architect must ensure that all pertinent compliance forms are attached to the request for payment prior to approving the request. GRANT PAYMENT The applicant will submit a request for payment to the City of Miami Department of Community Development with all pertinent information and support documentation. The request must be accompanied by all Davis Bacon Information reports and invoices detailing portions of the job completed as specified in the approved schedule of values. The applicant and architect must sign the request. The following types of payment will be processed: a) Progress payment -- A payment may be issued to the contractor for ninety percent (90%) of the completed work or materials that have been ordered and paid. The Page 5 of 6 ,L rw request for payment must be approved by the applicant and the architect. The City of Miami will confirm that the work has been completed. b) The retainage of ten percent (10%) of the contract amount shall be paid upon compliance by the contractor of the following: • Completion of all rehabilitation work and receipt submitted to the City of a final Certificate of Completion; and • 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 • Receipt and approval by the City of Miami of all documentation for compliance with Federal Labor Standards; and • Receipt and approval by the City of a Contractor's Affidavit representing a certified statement showing that the property is free and clear of mechanics, materialmen's or any other type of lien or obligation relating to the construction of the project. c) A lump sum for the grant total may be issued to the applicant upon completion of all the rehabilitation work and compliance with the requirements for release of the retainage set forth above. In this instance, the lump sum amount disbursed will constitute a "reimbursement to the applicant (rather than a payment to the contractor); for eligible rehabilitation costs incurred and already paid. W4373 Attach Page 6 of 6 CITY OF MIAMI, FLORIDA 7 INTER -OFFICE MEMORANDUM TO: Honorable Mayor and DATE: NAY - 2 2000 FILE Members of the City Commission SUBJECT: Commercial Revitalization Program FROM: Donald H. Warshaw REFERENCES: City Commission Agenda City Manager May 11, 2000 ENCLOSURES: RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution approving the establishment of a Commercial Revitalization Program similar to the program operated by the Miami -Dade County Office of Community and Economic Development. BACKGROUND: During the City Commission's discussion at its meeting of January 27, 2000 pertaining to a request from Neighbors and Neighbors Association, Inc. to provide matching funds for three (3) businesses that it had been assisting through the ' Miami -Dade County Commercial Revitalization Program, the City Commission directed the Administration to develop a program similar to the County program. As a follow-up to this direction, the Department of Community Development has developed a program concept similar to the Miami -Dade County Commercial Revitalization Program operated through the Office of Community and Economic Development. The County Program is designed to improve the exterior physical appearances of businesses, correct interior and exterior code violations and meet applicable Americans with Disabilities Act requirements. The County provides grants up to $100,000 for projects located in unincorporated areas of Miami -Dade County and non - entitlement cities. The business is required to provide a 10% up front match. The County program includes restrictions for properties located in entitlement cities such as the City of Miami. The County requires that projects located in the City must secure a 75% match from the City, with the County providing the remaining 25% contribution up to $50,000. The Administration's proposed program will allow businesses to take advantage of the County program. The City of Miami currently provides CDBG funding to assist local businesses through the Commercial Facade Program and the Code Compliance programs. The Commercial Fagade Program currently provides a 70% grant to counter a 30% match by the business owner for improvements up to $2,000. As designed, the maximum grant provided through the City's existing program is $1,400, with the remaining $600 provided as the 00- 412 business owner's match. The Code Compliance Program maintains a similar 70/30 match requirement, but the program provides assistance up to 70% of $10,000 of repairs for businesses that have been cited by the City for health and safety code violations. The Administration's proposed concept design expands the benefits provided through existing City programs and is similar to the existing Miami -Dade County Commercial Revitalization Program. The following information is provided as an overview of the proposed program: • Maximum grant is $50,000 and must be matched on a dollar to dollar basis by the applicant • All applications to be reviewed and approved by the Community Development Loan Committee and then submitted to City Commission for final approval • Applicant responsible for all additional costs above the maximum grant amount of $50,000 • Priority given to businesses located in the Economic Opportunity Zones • Grant funds to be repaid on a prorated basis for any business sold within five (5) years of receiving assistance • Property owners and/or commercial/industrial lease holders eligible to apply for assistance • Property owner must be in good standing (i.e. property taxes must be current) • Commercial/industrial lease holders must receive approval from the property owner • Financial statements, certified tax returns; and other financial 'information deemed necessary must be provided • Eligible expenses include construction costs for work on exteriors, correction of interior and exterior code violations and improvements to meet requirements of the Americans with Disabilities Act • Compliance with applicable Davis -Bacon Act and Labor Standards requirements • Funds disbursed on submittal of a certificate of completion, certificate of occupancy and all other compliance information required by CDBG guidelines • The applicant responsible for all fees and costs incurred prior to project approval • The City not responsible for any cost overruns in excess of the approved contract amount The most significant difference between the County's Commercial Revitalization Program and the proposed Administration concept is the match requirement. The County match for applicant participation is 10%, whereas the City's program is based on a dollar for dollar match. However, the City does not require a County match to participate in the program, but the County does require a City match. The City program also does not limit the source of the dollar for dollar match. It must be clearly understood that the proposed City of Miami Commercial Revitalization Program is intended only as a program design. Funds have not been authorized or identified to support the proposed Commercial Revitalization Program. Although funds have not been identified for the City of Miami to implement the proposed Commercial Revitalization Program, this does not preclude the Community Redevelopment Agency (CRA) from implementing and operating an economic development project similar to the design concept of the Administration's proposed program, to meet the unique needs of businesses located within the distressed areas the CRA serves. The proposed Resolution recommended for approval addresses the direction of the City Commission to establish the concept for a Commercial Revitalization Program similar to the program operated by Miami -Dade County. SU q JFL/GCW/DF GO- 41-2 • • PUBLIC NOTICE FOR SPECIAL CITY COMMISSION MEETING REGARDING COMMUNITY DEVELOPMENT ISSUES The Miami City Commission will hold a Special Meeting Development. The Special Meeting will be held: to discuss issues relating to Community Thursday, May 11, 2000 at 2:00 P.M. City of Miami Commission Chamber 3500 Pan American Drive Miami, Florida 33133 The Agenda for the Special Meeting is as follows: 1. Discussion on Funding History of the City of Miami Community Development Block Grant (CDBG) Program for the 19' — 25" Program Years 2. Discussion and proposed resolution to revise the Citizen Participation Plan, including the abolishment of the Citywide Advisory Board 3. Discussion and proposed resolution on Planning Calendar for 26h Year CDBG activities 4. Presentation on Orchard Villas Model City Revitalization Project, including proposed legislation to adopt the plan in principle and allocating $100,000 of HOME funds to engage R.J. Heisenbottle Architects, P.A to develop a Master Plan for the area; allocating $1.5 million of 1999 HOME funds and $1.5 million of future 2000 HOME funds to develop affordable housing in the Model City Home Ownership Zone; and supporting the Miami -Dade County application to U.S. HUD for HOPE VI funding to redevelop the Liberty Square and Liberty Homes Public Housing Projects S. Proposed resolution to modify Housing Loan Committee Membership by eliminating the seat previously held by Miami Capital Development Corporation and replacing it with a representative with private real estate lending experience; expanding the choice of City Departments from which the City Manager can appoint the Administration's representatives; and appointing Frank Rollason, Director, City of Miami Building Department, to fill the vacancy created by the retirement of Jim Kay, former Director of the City of Miami Public Works Department 6. Resolution proposing the reestablishment of a Commercial Loan Program to revitalize commercial corridors in the City of Miami Revitalization Districts; allocating $150,000 of CDBG funds to the Latin Chamber of Commerce to administer the program in the southern portion of the City and $150,000 of CDBG funds to the Little Haiti Credit Union to administer the program in the northern area of the City and designating the City of Miami Department of Real Estate and Economic Development to administer the program in the central area of the City 7. Discussion and proposed resolution to establish a concept for an enhanced Commercial Revitalization Program 0- 412. 8. Discussion and proposed resolution to maintain the annual funding commitment of $225,000 for a five year period to the Little Haiti Job Creation Project to create jobs and stimulate businesses in the Edison Little River area 9. Discussion and proposed resolution allocating $262,322 of HOME funds to the CRA to establish a homebuyer's pre -qualification program in the Southeast Overtown/Community Redevelopment area 10. Discussion and proposed resolution to replace $504,450 of SHIP funds with available HOME funds for related construction expenses for the the Allapattah Business Development Authority to develop the Ralph's Plaza Townhomes - Phase I project. 11. Discussion and proposed resolution to deobligate $853,727 of 1996-97 and 1997-98 SHIP funds as follows and to reprogram said amount to fund the City of Miami Single Family rehabilitation and First Time Homebuyers' Financing Programs: Organization and Protect Amount BAME Development Corporation of South Florida -New Hope/Overtown $100,000 Housing Project Jubilee Community Development Corporation - Jubilee Villas Housing Project 62,500 Model Housing Corporation - Villas Dr. Godoy Housing Project 62,500 DEEDCO, Inc. - Miami River Village Housing Project 100,000 St. John Community Development Corporation - Lyric Village Housing Project 114,150 Florida Housing Cooperative - Barcelona Place 414,577 Total Deobligation $853,727 12. Discussion and proposed resolution to deobligate $4.75 million of HOME funds allocated to the Urban League and LHL Housing Corporation to develop the Nofthwestem Estates Housing Project and reallocating $3.1 from available 1976 General Obligation Housing Bond Program funds to said project for the purpose of resolving the finding identified in the Audit Report issued March 26, 1998 by the Office of the Inspector General 13. Discussion and proposed resolution allocating $3,587,693 of available HOPWA Funds as follows: Organization and Project Amount Economic Opportunity Family Health Center - Long Term Housing $1,742,900 Miami -Dade Housing Agency - Long Term Housing 11844,793 Total $3,587,693 14. Discussion and proposed resolution restructuring the HOPWA Program 15. Discussion and proposed resolution allocating $50,000 to the accounting firm of Sharpton, Brunson and Company to perform an audit and provide technical assistance on the HOPWA Program 16. Discussion on letter from U.S. HUD citing the City of Miami for not being in compliance with HUD standards in the expenditure of funds in its CDBG Line of Credit balances 17. Discussion and proposed resolution to fund previously authorized legislative commitments approved by the City Commission to the Community Redevelopment Agency (CRA) as follows: Protect Authorizing Legislation Amount Historic Overtown Priority Business Corridor Resolution 98-592 $3,000,000 CRA/SEOPW Interlocal Agreement Commitment Ordinance 11736 2,000,000 r • 11 Proposed funding sources for the above allocations to meet CRA funding commitments: Project Amount Funding Source Historic Overtown Priority Business Corridor $3,000,000 Reprogramming of previously approved funds for CIP Projects CRA/SEOPW Interlocal Agreement Commitment $1,000,000 HOPWA FUNDS CRA/SEOPW Interlocal Agreement Commitment $1,000,000 Reprogramming of previously approved funds for CIP Projects Note: Said reprogramming of previously authorized CDBG funds to come from among the following CIP projects that are not in a position to be completed by September 30, 2000 as determined by the Assistant City Manager for Operations: African Square Park Improvements African Square Park Land Acquisition Allapattah Comstock Park Armbrister Park Building Renovations Athalie Range Park Athalie Range Park Playground Lighting Belafonte Park Improvement Charles Hadley Park Renovations Coconut Grove Minipark Renovation Curtis Park Improvements Dorsey Park Site Improvements Eaton Park Improvements Henderson Park Improvements Replacement Jose Marti Park Lemon City Day Care Park Little Havana Softball Field Merrie Christmas Park Handicap Access Miller Dawkins Park Renovations Moore Park Field Renovations Moore Park Renovations North Bay Vista Playground Reeves Park Riverside Park Playground Shenandoah Park Improvements Target Area Park Improvements Virrick Park. Improvements West Buena Vista Park Renovations Williams Park Improvements Allapattah Sidewalk Replacement Coconut Grove Sidewalk Replacement Downtown Sidewalk Replacement Edison Little River Sidewalk Little Havana Sidewalk Replacement Manuel Artime Community Center Model City Sidewalk Replacement Overtown Sidewalk Replacement Tower Theatre Wynwood Sidewalk Replacement The proposed resolution also recommits $1.5 million of CDBG funds to previously approved CIP projects that can be completed by September 30, 3000 in accordance with the prioritization of previously approved CTP projects by the Assistant City Manager responsible for Operations and approval of the Department of Community Development. The proposed resolution also allocates $200,000 to the City of Miami Building Department for demolition activities to be carried out through September 30, 2000, from the reprogramming of previously authorized funds for Capital Improvement Projects 18. Discussion and legislation deobligating $500,000 of previously committed CDBG funds and $500,000 of previously committed HOME funds to the St. John Community Development Corporation for development of the Lyric Village Housing Project 19. Discussion and legislation regarding the Performing Arts/First Source Hiring Agreement UU- 4-12 Interested individuals are encouraged to attend this Special Meeting. The meeting site is accessible to the handicapped. (AD ems.r AI �'.