Item Coversheet

NEW BUSINESS  9.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: May 24, 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. In preparation of the FY 2023 Budget, the Administration recommended initiatives and programs consistent with the Redevelopment Plan and the proposed FY 2023 budget priorities were 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 and Residential Property Improvement Program (collectively, the “Programs”). The Programs inaugural cycle will target properties located within the Normandy Isles/Rue Vendome Plaza section of the Redevelopment Area, to promote and encourage concentrated impact. (Exhibit A: Program Boundary Map).

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 improvement 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 Programs.

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. An attractive streetscape has a positive impact on the quality of life of our residents, visitors, and businesses. Walkable environments improve the mental and physical health of residents and increased foot traffic potentially boosts the sales of businesses. In a poll conducted during the North Beach CRA Redevelopment Plan (“Redevelopment Plan”) public design charrette, a majority of participants indicated interest in an expenditure of North Beach CRA funds on façade improvements. (Redevelopment Plan pgs. 14 and 43).

Conceptual Beautification Improvements (North Beach CRA Redevelopment Plan)


The Redevelopment Plan strongly promotes 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. The Redevelopment Plan also encourages use of incentive-based programs to inspire building owners to invest in their own infrastructure. The Redevelopment Plan Business Attraction & Retention strategy (Redevelopment Goal #1: Provide Economic Development Opportunities for Businesses, Property Owners, and Residents) recommends 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, is envisioned in the Redevelopment Plan as becoming a vibrant, pedestrian-oriented shopping district. The Redevelopment Plan foresees revitalizing the neighborhood with improved, well-designed streetscaping, including storefronts and building façades that enhance the identity of the 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 refreshed the public plaza, landscaping, lighting, and other improvements geared 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 the 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 and residential façades foster a safe, stable, and thriving community.

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

FY 2023 Program Funding
The North Beach CRA’s FY 2023 budget includes beautification programming for the Normandy Fountain/Rue Vendome Plaza area in the amount of $110,000 for a Commercial Facade Improvement Program and $100,000 for a Residential Property Improvement Program.

Grant Award Amount
The Programs will be offered via a matching grant concept, requiring applicants to invest their own money into the improvement project. Such grants increase overall project scope, allowing for more impactful improvements. The Programs serve as a public-private partnership that encourages private commercial and residential re-investment into the North Beach CRA District. The North Beach CRA will fund the reimbursement of eligible expenses, matching up to 70% of the grantee’s expenses, in an amount not to exceed $20,000 per application.

Sample Reimbursement Award Scenarios

 

Total Project Cost/Budget

70% Match

(Reimbursement up to $20,000)

Final Property Owner Contribution

$10,000

$ 7,000

$ 3,000

$15,000

$10,500

$ 4,500

$20,000

$14,000

$ 6,000

$30,000

$20,000

$10,000

 

Eligible expenses, which are listed below and in the attached exhibits, include hard and soft costs except for in-kind costs such as the applicant’s own time and labor. 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 are contained 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 commercial building tenants require the signature and approval of the building owner.

 

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
  • Vacant, unimproved land.

 

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. Although, FHFC Income Limits and Rent Limits are typically published in April of each year, the 2023 figures have not yet been published.

 

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

 

  • Applicant must be the owner of a multifamily residential property (condominium properties and single-family homes are not eligible to participate) 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.
  • For a period of three (3) years, following award, annual rent for the eligible rental units may not increase more than 3% each year and monthly rent may not exceed the affordability rent limits published annually by the FHFC. Rental leases are required for eligibility verification.

 

COMMERCIAL FAÇADE IMPROVEMENT TYPES

The intent of the commercial grant is to facilitate visible improvements to the exterior, street-facing façade of buildings. Exterior improvements must be completed within 12 months of award, subject to administrative extensions, and 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; and
  • Soft costs such as design fees (architecture, engineering, plans), contracting services, building permits and surveys.

 

Ineligible:

 

  • Improvements performed prior to execution of final agreement;
    Interior renovations and new construction of additional floor area or habitable space;
  • 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; and
  • Payments for the applicant’s own labor or other in-kind costs.

 

RESIDENTIAL FAÇADE IMPROVEMENT TYPES

The intent of the residential grant is to facilitate visible improvements to the exterior, street-facing façade. 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;
  • Roof repair and/or replacement; and
  • Soft costs such as design fees (architecture, engineering, plans), contracting services, building permits and surveys.

 

Ineligible:

 

  • Improvements performed prior to execution of final agreement;
  • Interior renovations and new construction of additional floor area or habitable space;
  • 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;
  • General maintenance that should be performed as part of routine up-keep; and
  • Payments for the applicant’s own labor or other in-kind costs.

 

APPLICATION REQUIREMENTS

The City reserves the discretion to accept, reject, or request modification of any application, and expects applicants to provide, at a minimum the following:

  • 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 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).

 

North Beach CRA staff shall verify all information, as necessary and applicable. 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.

 

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 Programs 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 3-4 weeks. If the project is not recommended for award of grant funding, the applicant will 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.
  • All work related to improvements must be completed within 12 months of award notification.
  • 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 consider the following criteria, but is not limited to, when evaluating applications:

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

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.

 

FINANCIAL INFORMATION

The Programs have been budgeted in the adopted FY Budget of the North Beach CRA.


CONCLUSION:

To promote the program and raise awareness, the CRA will building upon existing relationships to recruit program participants, and partner with community stakeholders, including but not limited to the North Beach CRA Advisory Committee and Normandy Fountain Business Association.

The guidelines are designed to ensure that the program facilitates and manages improvement projects that serve the overall 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 the Programs may help elevate the Normandy Fountain area into a more vibrant, pedestrian-oriented shopping area while fulfilling the Redevelopment Plan 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?
No No 

Strategic Connection

Prosperity - Revitalize targeted areas and increase investment.
ATTACHMENTS:
DescriptionType
Referral MemoMemo
Exhibit A - Program Boundary MapOther
Exhibit B - Commercial Program Guidelines Other
Exhibit C - Residential Program GuidelinesOther