Item Coversheet

NEW BUSINESS  10.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:


DATE: April 21, 2023


SUBJECT:DISCUSS THE NORTH BEACH CRA COMMERCIAL FACADE IMPROVEMENT PROGRAM AND RESIDENTIAL PROPERTY IMPROVEMENT PROGRAM

HISTORY:

On September 28, 2022, the Chairperson and Board of Directors of the North Beach Community Redevelopment Agency ("North Beach CRA") adopted Resolution 007-2022, approving the North Beach CRA's Fiscal Year (FY) 2023 Final Operating Budget. During the FY 2023 Budget development process, the Administration recommended initiatives and programs consistent with the Redevelopment Plan and supported by the Ad Hoc North Beach CRA Advisory Committee (“North Beach CRA Advisory Committee”), as reported in LTC 285-2022 dated July 14, 2022. The North Beach CRA’s FY 2023 Budget prioritizes six (6) categories of expenditures, the largest of which (excluding funding set-asides for future projects) is ‘Beautification’.


As presented in the FY 2023 Budget, the North Beach CRA is slated to implement a Commercial Facade Improvement Program, with the inaugural cycle targeting businesses located within the Normandy Isles/Rue Vendome Plaza section of the Redevelopment Area to promote and encourage concentrated impact (See Exhibit A: Program Boundary Map). A Residential Property Improvement Program will also initially target residential use properties in the same program area. To maximize effectiveness with limited resources in the initial years of the North Beach CRA, the Normandy Isles/Rue Vendome Plaza area was selected due to the concentration and visibility of commercial properties and businesses, the success of the City’s newly renovated Normandy Fountain public space, and the external leadership structure offered by the Normandy Fountain Business Association. It is anticipated that in future years, with initial program success, the Administration may recommend expansion of the program to other areas within the North Beach CRA district.

On October 12, November 8, and December 13, 2022, the North Beach CRA Advisory Committee discussed a proposed commercial façade program, provided feedback, and generally expressed support for creation of a façade program by the North Beach CRA Board.

On December 14, 2022, at the request of the Administration, the City Commission referred to the Finance and Economic Resiliency Committee (“FERC” or “the Committee”) a discussion of the North Beach CRA’s Commercial Facade Improvement Program and Residential Property Improvement Program.

Redevelopment Plan Strategy
Public realm improvements are a common theme for proposed North Beach CRA funded projects in the Redevelopment Plan, which was approved by City Commission Resolution No. 2021-31709 and North Beach CRA Resolution No. 003-2021. When commercial corridors are defined by an attractive streetscape, it is likely to have a positive impact on quality of life for residents, visitors, and business owners. Walkable environments can improve the mental and physical health of residents and increased foot traffic potentially boosts the sales of businesses. During participant polling, conducted in the North Beach CRA Redevelopment Plan (“Redevelopment Plan”) public design charrette, a majority of participants indicated interest in seeing North Beach CRA funds spent on façade improvements. (Redevelopment Plan pgs. 14 and 43).

"Conceptual Beautification Improvements" (North Beach CRA Redevelopment Plan)


The Redevelopment Plan strongly promotes building resiliency measures, specifically citing residential, commercial, and business façade improvement programs to assist property owners adapt to the region’s extreme weather patterns and natural events and use of incentive-based programs to encourage building owners to invest in their own infrastructure. The Redevelopment Plan’s Business Attraction & Retention strategy 9.1.1 (Redevelopment Goal #1: Provide Economic Development Opportunities for Businesses, Property Owners, and Residents) encourages the development of incentive programs to help property and business owners with aesthetics, repairs, improvements, and modifications.

Normandy Fountain Neighborhood
The Normandy Fountain area, also known as Vendome Plaza, serves as the community and commercial center of Normandy Isle, envisioned by the Redevelopment Plan as becoming a vibrant, pedestrian-oriented shopping district. The building stock in Normandy Isles is important to neighborhood identity. North Beach families and local businesses inhabit the aging buildings, and the streetscape defines the character of the community. The Redevelopment Plan incorporates revitalizing the neighborhood with improved, well-designed streetscaping including storefronts and building façades that enhance the identity of the commercial district.

Developing incentive programs geared to commercial spaces (including multifamily residential uses) within the vicinity of Normandy Fountain will complement the City’s recent Normandy Fountain streetscape improvement project, which included construction of a public plaza, landscaping, lighting, and other improvements to encourage public use as a gathering place for community and civic purposes.


ANALYSIS:

 Façade improvement is a relatively short-term mechanism to upgrade the visual appeal of a commercial district. This potential “quick win” provides a sizable return on investment as it builds public confidence and creates a place where people want to live, work, and play. The value of such an impactful investment is not overlooked. Improvements to commercial storefront façades, the rehabilitation of a residential building’s structural integrity foster a safe, stable, and thriving community.

 

The purpose of the programs is to substantially improve the visible appearance and streetscape of commercial properties and enhance the functionality and sustainability of businesses within this main commercial area. The programs will focus upon cultivating an improved visual experience and sense of place through external enhancements including but not limited to French-themed architecture (as appropriate and permissible) and aesthetics to leverage the history and infrastructure of the area which today includes French street names.

 

The North Beach CRA’s FY 2023 Budget includes $110,000 for a Commercial Facade Improvement Program in the Normandy Fountain/Rue Vendome Plaza area.  Funding for beautification programming also includes $100,000 for a Residential Property Improvement Program to promote the maintenance of affordable housing stock and promote resiliency.

 

The Commercial Façade Improvement Program and the Residential Property Improvement Program will be offered via a matching grant concept, with the North Beach CRA funding a reimbursement of eligible expenses matching up to 70% of the grantee’s expenses in an amount not to exceed $20,000 per application. Thus, the programs serve as a public-private partnership that encourages private commercial and residential re-investment into the North Beach CRA neighborhoods. Matching grants require applicants to invest a portion of their own money into the improvement project. Such grants increase overall project scope, allowing for more impactful improvements.

 

Program Guidelines (framework, design guidelines, eligibility criteria, and application process) for the Commercial Façade Improvement Program are contained in Exhibit B and for the Residential Property Improvement Program in Exhibit C.

 

APPLICANT ELIGIBILITY - COMMERCIAL FAÇADE IMPROVEMENT PROGRAM

Any building owner or commercial tenant of a nonresidential building located within the Program’s geographic area is eligible to apply. All applications from building tenants require the signature and approval of the building owner. Exterior improvements must be completed within 12 months of award, subject to administrative extensions. All improvements must comply with Miami Beach Municipal Code and Florida Building Code standards.

The following types of properties are ineligible for the Commercial Façade Improvement Program:

 

  • Properties that are exclusively residential or do not contain ground floor commercial use;
  • Properties containing prohibited or non-conforming uses;
  • Properties whose primary purpose is a place of worship;
  • Properties encumbered by judgement liens, delinquent mortgage and tax obligations, and/or building or code violations; and
  • Unimproved, vacant land.

 

COMMERCIAL FAÇADE IMPROVEMENT TYPES

ELIGIBLE:

  • Restoration or rehabilitation of building's original and/or historic construction materials and removal of false façade elements
  • Stucco and/or clapboard restoration;
  • Painting (colors must be approved administratively);
  • Windows (impact-rated), framing installation, glass, and/or door repair or replacement;
  • Signage;
  • Awnings (including the repair or removal of old awnings and canopies and/or installation of new awnings);
  • Exterior lighting installation, repair, or replacement;
  • Façade or masonry renovation or repair;
  • Parking facility and/or driveway or installation, repair or enhancements;
  • Installation of brick, textured, and/or sustainable/pervious pavement; and
  • Accessibility upgrades.

INELIGIBLE:

  • Improvements performed prior to execution of final agreement;
  • Interior renovations and new construction of additional floor area or habitable space;
  • Payments for the applicant’s own labor or other in-kind costs;
  • Any service or improvements performed by a non-licensed contractor;
  • Storm water enhancements;
  • Decorative fencing or privacy fencing;
  • Removal of architecturally significant features;
  • Installation or repair of statues and fountains; and
  • General maintenance that should be performed as part of routine up-keep.

 

APPLICANT ELIGIBILITY - RESIDENTIAL PROPERTY IMPROVEMENT PROGRAM

The Residential Property Improvement Program is designed to support Miami Beach households with an annual income at or below 140% Area Median Income (“AMI”), adjusted for family size, based on the Florida Housing Finance Corporation’s (FHFC) annual income limits for Miami-Dade County. In 2022, 140% AMI for a two-member household in Miami-Dade was a household income of $109,200. FHFC Income Limits and Rent Limits are typically published in April of each year.

Owners of residential properties are eligible to apply, providing the following is met:

 

  • Applicant must be the owner of a multifamily residential property (not condominium properties) located within Program’s geographic area;
  • Within the multifamily residential property, a majority (50% plus 1) of rental units must be occupied by households at or below 140% AMI at the time of application or within 90 days of project completion.
  • Rents may not increase more than 3% each year and monthly rent amounts may not exceed the affordability rent limits published annually by the FHFC. Rental leases are required for eligibility verification.
  • Exterior improvements must be completed within 12 months of award, subject to administrative extensions
  • All improvements must comply with Miami Beach Municipal Code and Florida Building Code standards. Property must have a permitted use in the zoning district.

 

RESIDENTIAL FAÇADE IMPROVEMENT TYPES

The intent of the grant is to facilitate visible improvements to the exterior, street-facing façade of residential buildings. Exterior improvements must be completed within 12 months of award, subject to administrative extensions. All improvements must comply with Miami Beach Municipal Code and Florida Building Code standards.

ELIGIBLE:

 

  • Restoration/rehabilitation of the building's original and/or historic construction materials (and removal of false façade elements);
  • Stucco and/or clapboard restoration;
  • Painting (colors must be approved administratively);
  • Windows (impact-rated), framing installation, glass, and/or door repair or replacement;
  • Signage;
  • Awnings (including the repair or removal of old awnings and canopies and/or installation of new awnings);
  • Exterior lighting installation, repair, or replacement;
  • Façade or masonry renovation or repair;
  • Parking facility and/or driveway or installation, repair or enhancements;
  • Installation of brick, textured, and/or sustainable/pervious pavement;
  • Accessibility upgrades;
  • Porch replacement and/or carpentry;
  • Removal and/or replacement of front yard fences;
  • Installation of front lawn landscaping and/or irrigation; and
  • Roof repair and/or replacement.

 

INELIGIBLE:

 

  • Improvements performed prior to execution of final agreement;
  • Interior renovations and new construction of additional floor area or habitable space;
  • Payments for the applicant’s own labor or other in-kind costs;
  • Any service or improvements performed by a non-licensed contractor;
  • Storm water enhancements;
  • Removal of architecturally significant features;
  • Installation or repair of statues and fountains; and
  • General maintenance that should be performed as part of routine up-keep.

 

APPLICATION REQUIREMENTS

Grant funds will be allocated to projects satisfying one or more of the program criteria. The City reserves the discretion to accept, reject, or request modification of any application.

  • Submission of a completed application form;
  • Color photographs of current façade from sidewalk or street;
  • Conceptual design and specific scope of work;
  • Proof of fire and extended insurance for property;
  • Proof of three (3) quotes from licensed contractors;
  • Proof of insurance and necessary business licenses for selected contractor;
  • Itemized project cost estimate;
  • Documentation of property owner’s approval and permission for tenant improvements;
  • Documentation that the subject property is up to date on all City of Miami Beach and Miami-Dade County property taxes; and
  • Documentation that the business located in the subject property has an active and valid City of Miami Beach Business Tax Receipt (BTR).

VERIFICATION AND ELIGIBILITY DETERMINATION:

  • North Beach CRA staff shall verify all information as necessary.
  • Once an applicant has been determined to meet eligibility requirements, an initial inspection of the property will be conducted by staff to evaluate suitability and determine if there are any code violations or life and safety issues requiring remediation.
  • Applicant will be notified in writing regarding eligibility status, including explanation for application denial.

APPROVAL AND NOTIFICATIONS:

  • Grant awards may only be authorized by the CRA Board following a recommendation by North Beach CRA staff. To obtain matching grant funding, applicants must meet all property eligibility and program requirements in effect at the time of funding approval.

 

PROGRAM CYCLE TIMELINE (TENTATIVE)

 

  • Applications to the Program are accepted twice per year. During each grant cycle, the online application may be accessed for an application period of 4-6 weeks.
  • After closing of the application period, staff will review applications and make preliminary award recommendations over the following 2-3 weeks. If the project is not recommended for award of grant funding, the applicant will also be notified.
  • Grant applications will be evaluated on a first-come, first-qualified, first-served basis.
  • Following preliminary recommendation for award, North Beach CRA staff will schedule a meeting with applicant to ensure clear understanding of program guidelines and obligations and responsibilities of all parties.
  • Each application recommended for award by staff must be considered and approved by the North Beach CRA Board, who authorizes awards pursuant to adoption of a resolution.
  • Following North Beach CRA Board approval, the grant recipient will receive an award letter and grant agreement for execution outlining the grant details, project deadline, and expectations.
  • The grant recipient is required to provide bi-monthly updates to North Beach CRA staff throughout the project permitting and construction process.
  • After the improvements are completed, the grant recipient must provide the following to the North Beach CRA for review, prior to reimbursement of expenses: copies of receipts and/or paid invoices, proof of payment (copy of checks or bank statements), contractor license documentation, and photos of completed work.

 

APPLICATION EVALUATION CRITERIA

The North Beach CRA Board will evaluate applications with consideration of the following criteria:

  • Businesses and properties owned by Miami Beach residents;
  • Businesses and properties owned by veterans;
  • Projects that support small business retention and expansion in the North Beach CRA;
  • For vacant commercial properties, identification of an end use (office, retail, etc.) and tenants secured (at least a letter of intent);
  • Projects that support, encourage, promote, or maintain affordable or workforce housing;
  • Projects that incorporate Crime Prevention Through Environmental Design (CPTED);
  • Projects with improvements of high-quality design and/or value based on recognized professional standards or best practices;
  • Projects that align with the design standards established for the neighborhood and, when applicable, which may include historic preservation;
  • Projects that have a clear construction timeline and can be completed within six (6) to twelve (12) months; and
  • Projects with heightened vehicular and pedestrian visibility.

 

GRANT AWARDS

  • The maximum contribution awarded per applicant or property is $20,000.
  • The Program will match, on a reimbursement basis, up to 70% of the total project costs, up to an amount not to exceed $20,000.
  • Fifty (50%) percent of the grant award is eligible to be disbursed upon satisfactory completion of fifty (50%) percent of the approved project improvements.
  • Project costs incurred before application approval and/or the grant award are ineligible for reimbursement, therefore applicants are strongly discouraged from commencing construction prior to applying for the Program and receiving express approval from North Beach CRA staff and the North Beach CRA Board.
  • Amendments to these guidelines may be incorporated from time to time by the North Beach CRA. Vested authority shall be granted to the North Beach CRA Executive Director or his/her designee to authorize minor waiver or amendment to these guidelines. All major amendments to or deviation from these guidelines shall be approved by the North Beach CRA Board.

FISCAL IMPACT

The North Beach CRA’s FY 2023 Budget includes $110,000 for a Commercial Facade Improvement Program in the Normandy Fountain/Rue Vendome Plaza area. Funding for beautification programming also includes $100,000 for a Residential Property Improvement Program to promote housing affordability, the maintenance of housing stock and resiliency.

 

SUPPORTING SURVEY DATA

As documented in the North Beach CRA Redevelopment Plan, during the Redevelopment Plan public design charrette process, members of the community expressed a desire for the CRA to improve the physical look of the Redevelopment Area in the short term with “low-hanging fruit” such as building improvements, storefront repairs, and signage upgrades. According to the 2022 Business Survey prepared by the ETC Institute, the highest-ranking response among participants (51.9%) when asked how the City could improve business sustainability was to provide financial incentives to assist businesses to build sustainable practices.

According to 2022 data estimates from the U.S. Census Bureau, 63% of Miami Beach’s 43,237 households are renters as opposed to homeowners, a number more acute in North Beach according to the Redevelopment Plan. Accordingly, in furtherance of its goal to protect and enhance neighborhood character, the Redevelopment Plan encourages incentive programs to preserve existing housing stock and to mitigate costs for building rehabilitation. Formulation of new policies and strategies to accomplish this is important, as Miami Beach residents perceive a decline in City efforts to plan for growth (32.7% vs. 45.9%) and regulate residential development (22.7% vs. 34.8%), according to data from the 2022 and 2019 Resident Surveys.

CONCLUSION:

To promote the programs and raise awareness, the CRA will turn to the community, building upon existing relationships to recruit participants, by partnering with community stakeholders like the North Beach CRA Advisory Committee and Normandy Fountain Business Association.

The guidelines are designed to ensure that the programs facilitate improvement projects that serve the overall commercial district using additional funding sources external to the North Beach CRA. The foregoing guidelines and implementation strategy describe an actionable plan towards achieving measurable success.

Ultimately, strategic initiatives such as these programs may help elevate the Normandy Fountain commercial district into a more vibrant, pedestrian-oriented shopping area while fulfilling the Redevelopment Plan’s objectives of creating economic development opportunities for businesses, property owners, and residents, and protecting and enhancing neighborhood character.

Applicable Area

North Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Prosperity - Revitalize targeted areas and increase investment.
ATTACHMENTS:
DescriptionType
Exhibit AMemo
Exhibit B - Commercial GuidelinesOther
Exhibit C - Residential GuidelinesOther
Referral C4 A 12-14-2022Memo