CITY OF PENSCOLA, COMMUNITY REDEVELOPMENT AGENCY

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1 1. Call to Order Westside Redevelopment Board Meeting Tuesday, January 23, :30 P.M. CST 222 W. Main Street, 1 st Floor, Pensacola FL Vince Whibbs, Sr. Conference Room 2. Determination of Quorum REGULAR AGENDA 3. Approval of Minutes July 25, 2017 and October 25, Old Business Items a. Westside CRA Overlay of Design Standards Update b. Residential Property Improvement Program Update c. Commercial Façade Improvement Program Update 5. New Business Items 6. Reports and Announcements 7. Board Member Comments 8. Open Forum 9. Adjournment The City of Pensacola adheres to the Americans with Disabilities Act and will make reasonable accommodations for access to city services, programs and activities. Please call or TDD for further information. Requests must be made at least 48 hours in advance of the event in order to allow the city time to provide the requested services CITY OF PENSCOLA, COMMUNITY REDEVELOPMENT AGENCY 222 West Main Street, 3 rd Floor, Pensacola FL T: W:

2 Westside Redevelopment Board Tuesday, July 25, :30 P.M. CST 222 W. Main Street, 1 st Floor, Pensacola FL Vince Whibbs, Sr. Conference Room DRAFT RECORD OF MINUTES BOARD MEMBERS PRESENT James L. Gulley, Chair Jewel Cannada-Wynn Anny Shepard Doug Baldwin, Sr. BOARD MEMBERS ABSENT C. Marcel Davis, Vice Chair Dianne Robinson Vacant Position STAFF PRESENT Victoria D Angelo. Asst. CRA Administrator Ericka Burnett. City Clerk Dick Barker, Jr. Chief Financial Officer 1. Call to Order/Quorum Meeting was called to order at 3:33 p.m. by Acting Chairman, James Gulley. 2. Administration of Oath New Board Member, Doug Baldwin Sr. The Oath of Office was administered to new Board member, Doug Baldwin Sr., by City Clerk, Ericka Burnett. 3. Determination of Quorum A quorum was present. 4. Election of Officers Jewel Cannada-Wynn made a motion to nominate Acting Chairman Gulley to serve as Chairperson of the Westside Redevelopment Board. Motion seconded by Anny Shepard, and carried unanimously. Ms. Cannada-Wynn made a motion to nominate C. Marcel Davis to serve as Vice-Chairperson of the Westside Redevelopment Board. Motion seconded by Chairman Gulley, and carried unanimously. 5. Approval of Minutes April 25, 2017 Board member, Jewel Cannada-Wynn made a motion to approve the April 25, 2017 minutes with the following amendment to Item 3, Approval of Minutes: Correction to the misspelling of Board member Shepard s name: change Annie to Anny. Motion seconded by Anny Shepard, and carried unanimously. CITY OF PENSCOLA, COMMUNITY REDEVELOPMENT AGENCY 222 West Main Street, 3 rd Floor, Pensacola FL T: W:

3 Westside Redevelopment Board Meeting Record of Minutes, July 25, 2017 Page 2 6. New Business a. Westside CRA Project Financing Chief Financial Officer, Dick Barker provided an overview regarding proposed Westside CRA project financing. Mr. Barker advised the Board that approximately $4.082 million was estimated to be financed over a twenty (20) year term, ending September 1, He informed the Board that the proposed financing would pledge future Tax Incremental Financing (TIF) revenues for the remaining term of the Westside TIF District, and would require increased generation of tax revenues to fund additional projects through TIF funding. Mr. Barker explained that due to the state legislation that was proposed during the 2017 Legislative Session and anticipated to be proposed during 2018, that the financing served as a safeguard the preserve existence of the Westside CRA throughout the remainder of its term. Mr. Baldwin requested that a copy of the financials be provided. Mr. Barker informed the Board that the proposed financing would be discussed at the CRA meeting in August and presented to City Council for approval on August 10, He explained that the financial documentation would be available on the City s website following approval by the City Council. Ms. Shepard requested that Assistant CRA Administrator, Victoria D Angelo identify which types of projects which would be funded by the proposed financing. Ms. D Angelo advised the Board that the financing would support projects identified within the FY 2017/2018 Westside CRA Work Plan, as amended, including streetscape, property acquisition and clearance and affordable housing projects. She advised the Board that CRA staff would also seek supplemental funding such as grants, and Local Option Sales Tax (LOST) funding to support the identified projects. Chairman Gulley made a motion to recommend approval of the proposed financing over a twenty (20) year term to support implementation of Westside CRA projects. Motion seconded by Ms. Shepard and carried unanimously. 7. Old Business a. WRB Rules and Procedures Ms. D Angelo presented the WRB Rules and Procedures, as amended on April 25, 2017, with a recommended modification to Section 3.D. She advised the Board that the approved amendments had been incorporated into the document as follows: Section 2.B, Agenda: Added subsections a-c, establishing a procedure for agenda preparation for regular meetings; and Section 2.G, Order of Business: Added subsection 8, Open Forum ; and Section 4, Amendment of Rules and Procedures: Added section 4, establishing a procedure for amendment of WRB rules and procedures. She informed the Board that an additional modification to Section 3.D, Quorum was recommended for consistency with the Board s establishing ordinance as follows:

4 Westside Redevelopment Board Meeting Record of Minutes, July 25, 2017 Page 3 Four (4) members of the Board shall constitute a quorum, and the affirmative vote of a majority of the Board the quorum will be necessary for any action thereof. Ms. D Angelo explained that the recommended changes would require no less than three (3) supporting members for an affirmative vote of any action, and no less than four (4) supporting members for amendments to the Board s rules and procedures. Chairman Gulley made a motion to adopt the WRB Rules and Procedures as presented with the modification to Section 3.D, Quorum. Motion seconded by Mr. Baldwin and carried unanimously. b. Westside Redevelopment Board (WRB) Appointment Update Ms. D Angelo advised the Board that City Council approved the appointment of two (2) new Board members, Mr. Doug Baldwin Sr. and Ms. Amy Richardson on July 13, She explained that Ms. Richardson had advised CRA staff that she would be moving outside of the Westside area and therefore would be unable to serve on the Board. Ms. D Angelo informed the Board that CRA staff had received her written notice of resignation and forwarded the notice to the City Clerk to re-solicit for the position. 8. Information Items No information items were discussed. 9. Board Member Comments Ms. Cannada-Wynn discussed potential initiatives which could be implemented to address boarded, dilapidated housing and inadequate maintenance of rental properties within the City. The Board discussed the initiatives and expressed support for implementation. Ms. Cannada-Wynn also addressed restructuring Legion Field to establish a recreational complex for the Westside neighborhood. Mr. Baldwin questioned whether or not community policing had been used as a strategy for code enforcement. The Board discussed potential options to increase code enforcement through community policing and utilization of existing field staff. Mr. Baldwin asked if staff was aware of any new commercial developments planned for the Westside. Ms. D Angelo explained that she was not aware of any new commercial projects within the area. Board member Cannada-Wynn suggested that Florida West and the City s Economic Development Coordinator, Rebecca Ferguson could potentially conduct an economic assessment of the Westside area and review for business incentives. Chairman Gulley asked whether or not the proposed Delphin Downs apartment development would contribute to TIF revenues. Ms. D Angelo explained that she was not aware of the anticipated tax structure of the proposed development. Ms. Cannada-Wynn asserted that the City has been successful in implementing a redevelopment strategy within Downtown Pensacola which prioritizes investment for high impact projects. The Board discussed how this strategy catalyzes an influx of investment through the implementation of public and publicprivate partnership projects. Mr. Gulley requested that a map of the West Moreno Phase 1 Focus Area and a sample resolution in support of implementation of the West Cervantes Corridor Management Plan be distributed to the Board. Ms. D Angelo obliged.

5 Westside Redevelopment Board Meeting Record of Minutes, July 25, 2017 Page Open Forum No public comment was received. 11. Adjournment With no further discussion, the meeting adjourned at 5:07 p.m.

6 Westside Redevelopment Board Tuesday, October 25, :30 P.M. CST 222 W. Main Street, 1 st Floor, Pensacola FL Vince Whibbs, Sr. Conference Room DRAFT RECORD OF MINUTES BOARD MEMBERS PRESENT BOARD MEMBERS ABSENT James L. Gulley, Chair Jewel Cannada-Wynn C. Marcel Davis, Vice Chair Doug Baldwin, Sr. Anny Shepard Dianne Robinson Vacant Position STAFF PRESENT Helen Gibson. CRA Administrator Victoria D Angelo. Asst. CRA Administrator 1. Call to Order/Quorum Meeting was called to order at 3:51 p.m. by Chairman, James Gulley. 2. Determination of Quorum A quorum was not present. 3. Approval of Minutes July 25, 2017 Approval of the July 25, 2017 minutes were tabled due to lack of a quorum. 4. Old Business 5. New Business a. Westside CRA Overlay of Design Standards Assistant CRA Administrator, Victoria D Angelo provided an update regarding the Westside CRA Overlay of Design Standards. Ms. D Angelo advised the Westside Redevelopment Board (WRB) that the Community Redevelopment Agency (CRA) had issued a Request for Qualifications (RFQ) to hire a consultant to provide urban design and code amendments services to support the development, adoption and codification of the CRA Overlay of Design Standards. She explained that a selection committee had met and recommended the firm DPZ, as the top ranking firm to the CRA for approval. She informed the WRB that the CRA had approved the ranking during the October meeting and indicated that the CRA was concurrently undergoing contract negotiations with the consultant. Ms. D Angelo announced that the CRA had received notice of award of a grant from the Florida Department of Economic Opportunity (DEO) in the amount of $40,000 to the support the project. Board member Anny Shepard asked how long the project would take. Ms. D Angelo informed the WRB that the project is estimated for completion by June b. Affordable Housing Improvement Program CITY OF PENSCOLA, COMMUNITY REDEVELOPMENT AGENCY 222 West Main Street, 3 rd Floor, Pensacola FL T: W:

7 Westside Redevelopment Board Meeting Record of Minutes, October 25, 2017 Page 2 CRA Administrator, Helen Gibson informed the WRB that the CRA was in the process of finalizing program documents for an Affordable Housing Improvement Program within the Westside community redevelopment area. Ms. Gibson reviewed the program criteria and procedures and the targeted geographical boundaries for program implementation. She advised the Board that the program was intended to be a component of a residential improvement strategy which layers a variety of available programs within a targeted geographical area. She explained that the strategy was anticipated to be implemented through a partnership with various community organizations such as housing agencies, and financial institutions. Ms. Gibson requested that the Board members provide feedback regarding the program. Chairman Gulley explained that he was concerned that the award amount was too high and may be able to be reduced to stretch the money further. Vice-Chairman Davis indicated that he approved of the program as presented. Board member Shepard stated that she liked that the program would be geographically targeted. c. Commercial Façade Improvement Program Ms. D Angelo informed the WRB that the development of program documents for a Commercial Façade Improvement Program within the Westside community redevelopment area was underway, and reviewed the program parameters. Ms. D Angelo explained that the program would be available to commercial properties, as well as, historical and culturally-significant properties provided that these properties were used for a non-residential purpose and met the definition of each respective property type. She further explained that religious institutions would be ineligible under the program terms. The WRB discussed the location of the geographical target area. Board member Anny Shepard asked when the program was expected to be approved. Ms. D Angelo informed the WRB that the program is expected to be presented to the CRA for approval within the upcoming few months. d. Fiscal Year 2018 Meeting Schedule Ms. D Angelo presented the Fiscal Year 2018 meeting schedule. 6. Reports and Announcements a. Financial Report Ms. Gibson advised the WRB that the Financial Statements contained within the City of Pensacola s Comprehensive Annual Financial Report (CAFR) for the Westside Redevelopment Fund were provided for the 2015 and 2016 fiscal years at the request of Chairman Gulley. Additionally, she explained that the beginning Fiscal Year 2017 and approved Fiscal Year 2018 budgets for the Westside Redevelopment Fund and Debt Service Fund, and the Local Option Sales Tax project list and allocations, were also provided at the request of Chairman Gulley. Ms. Gibson proceeded to provide an overview of the Fiscal Year 2017 estimated actual, and Fiscal Year 2018 actual Westside Tax Incremental Financing (TIF) and bond revenues and expenditures. She further presented the Westside CRA project list and identified current project allocations based on actual budget allocations.

8 Westside Redevelopment Board Meeting Record of Minutes, October 25, 2017 Page 3 b. Report of Council Action Westside CRA Financing Ms. Gibson explained that a copy a the Report of Council Action for the Westside CRA Financing which was discussed at the July WRB meeting was provided within the agenda packet for reference. 7. Board Member Comments No board member comments were discussed. 8. Open Forum No public comment was received. 9. Adjournment With no further discussion, the meeting adjourned at 4:59 p.m.

9 RESIDENTIAL PROPERTY IMPROVEMENT PROGRAM GUIDELINES 1. GOAL: The goal of this program is to encourage and support blight removal, affordable housing, and neighborhood revitalization within targeted districts of the designated Pensacola community redevelopment areas by funding improvements to enhance residential properties. 2. TYPE OF ASSISTANCE: The program offers a zero percent (0%) interest, Deferred Payment Loan secured by a lien agreement. Eligible property owners whose household income is equal to or less than 120 percent of the Area Median Income (AMI), as defined by the most recent HUD Median Income Limits for Escambia County, Florida, may receive funding up to $35,000 for eligible improvement costs. Property owners whose household income exceeds 120% AMI, or whose property is non-homesteaded at the time of application may receive funding, up to $17,500 for eligible improvement costs. 3. FUNDING SOURCE: City of Pensacola Community Redevelopment Agency (CRA) funds will be used to fund improvements and repairs under this program. Funding is subject to availability and approval under the terms of the program guidelines. 4. MARKETING & OUTREACH: The West Florida Regional Planning Council (WFRPC) will lead an outreach campaign, in coordination with the Pensacola CRA staff, to attract interest in the program from residents in the identified areas of eligibility. WFRPC will develop appropriate marketing materials, contact property owners, and identify a communication strategy to bring community awareness to the program. 5. ELIGIBLE PROPERTIES: Properties eligible for consideration for this program are residential units within identified target areas. These units may either be owner-occupied or rental properties and may include both single and multi-family dwellings. 6. ELIGIBLE APPLICANTS: This program will invite applications from property owners in target areas interested in making exterior and other improvements to their residential properties. Applicants must own the property to be rehabilitated. Types of ownership may include fee simple, including heir or multiple ownership properties (with the notarized written consent of all heirs or owners). Ownership must be verified by official documentation including the following: legal opinion and title letter, copy of property tax bill, or deed. To qualify as an owner-occupied property, applicants must provide proof of homestead exemption or application for homestead exemption. 7. RENTAL PROPERTIES: A certified copy of any existing lease agreement must be submitted by the property owner for occupied rental properties and must be certified to the program annually during the term of the loan. Owners of rental property may neither pass through the cost of the funded improvements to tenants nor displace tenants. Should the property owner increase rent(s) by more than five percent (5%) in a given year, the remaining balance of the loan will become immediately due and payable. Owners of rental 13

10 properties must execute an assignment of leases, rents and profits agreement with the CRA for the duration of the lien agreement. 8. EXISTING MORTGAGE: Applicants must be current on any existing mortgage on the property. A certified letter from the mortgage holder will be requested as documentation. The right is reserved to request additional documentation confirming mortgage status. 9. TAXES, LIENS AND OTHER CHARGES: All property tax assessments, levies, license fees, permit fees and other charges levied, assessed, confirmed, or imposed on, or in respect of, or which may be a lien upon the property or upon the rents, issues or income or profits must be paid completely up to date at the time of application. Applicants shall submit evidence of payment as requested. Taxes may be verified by: 1) property tax payment receipt from the City/County, or 2) affidavit certifying payment or mortgage statement from lender saying taxes are completely paid. 10. PROPERTY INSURANCE: Program participant must have, maintain and provide proof of homeowner s insurance in accordance with the requirements of the funding agreement. Program participant shall name the CRA as a certificate holder on all required insurance policies and shall renew the required policies on an annual basis until the lien is satisfied or released. 11. COMPLIANCE WITH CITY REGULATIONS: Prior to project completion the property must be clear of any care of grounds violations. Compliance with any applicable exterior design guidelines is required. 12. ELIGIBLE REPAIR AND IMPROVEMENTS: Eligible rehabilitation activities include, but are not limited to, the following: o Structure cleaning, exterior painting, re-siding, or refinishing (Low maintenance improvement options should be selected. Colors must be selected from an approved palette. o Doors (including kick plates, hardware upgrades, and storm doors) o Windows o Roofing (including eaves and overhangs) o Landscaping and irrigation o Exterior lighting o Fencing o Porch repair/replacement o Drain fields o Eaves and Overhangs o Shutters o Paving areas facing the street (such as driveways) o Foundation work o Design and technical assistance 14

11 Additional structural and interior repairs and improvements may be approved for eligibility, subject to inspection and fund availability. Permit fees may be included in the total project cost. 13. FUNDING LIMITATIONS: The maximum amount available for each home is $35,000 (for HH Income of 120% AMI or less) or $17,500 (for HH Income greater than 120% AMI or Rental Properties). 14. FORM OF ASSISTANCE: Grantees will receive a Deferred Payment Loan secured by a lien agreement on the property. The loan is forgiven in full at the expiration of the lien period and no payment is required on the loan unless: any or all of the funded improvements are modified, altered, removed, or demolished, the property is sold, transferred, demolished or assigned, converted to 100% non-residential use, directly or indirectly encumbered, pledged, or conveyed, the owner fails to maintain the property, unresolved code violations occur, or rents are increased by more than 5% per year during the lien period. 15. TERM: Liens are for a term of three (3) years for owner-occupied properties and five (5) years for rental properties, and are forgiven on a daily basis over the course of the full indenture period for such property type. A violation of the terms of the lien shall be a default, and in that event all unforgiven sums shall be immediately due and payable. 16. ASSUMABILITY: In the event of the death of the original grantee or sale of the property prior to the expiration of the date determined in the lien agreement, the amount of the loan or any remaining prorated balance shall be repaid. 17. HOW TO APPLY: Interested property owners should contact the West Florida Planning Council for determination of eligibility. An inspection of the property will be scheduled to determine the scope of work needed. Applications will be considered on a first come first served basis. 18. PROGRAM PROCEDURES a) Application To apply for funding under the Residential Property Improvement Program, prospective applicants shall submit a Program Application and supporting documentation to the office of the West Florida Regional Planning Council (WFRPC). Upon preliminary review, WFRPC staff will provide notice of eligibility determination. Eligible applications will be scheduled for an initial inspection to determine the scope of work needed. Required Documentation Owner-Occupied Properties Property Deed, Property Tax Bill or Legal Opinion and Title Letter Establishing Legal Ownership* Copy of Homestead Exemption or Homestead Exemption Application Income Verification Documentation (See below) Rental Properties Property Deed, Property Tax Bill or Legal Opinion and Title Letter Establishing Legal Ownership* Lease Agreement (Certified Copy) Income Verification Documentation (See below) 15

12 Proof of Paid Taxes: Property Tax Payment Receipt or Affidavit Certifying Payment or Mortgage Statement from Lender saying Taxes are Paid Any other documentation as requested. Proof of Paid Taxes: Property Tax Payment Receipt or Affidavit Certifying Payment or Mortgage Statement from Lender saying Taxes are Paid Any other documentation as requested. *Properties owned by multiple parties must provide a notarized affidavit from all legal owners consenting to program participation. Applicant(s) must submit income/employment verification for all household members 18 years or older or signed statement indicating unemployment, and describing source of financial support. All financial and asset income will be verified by a third party within 120 days. Acceptable forms of documentation include: Pay stub issued within the past three (3) months containing pay period, and/or pay frequency, and rate of pay and/or; Federal Income Tax Return from the previous tax year and/or; Social Security Administration Letter/Statement issued within the past twelve (12) months containing current benefit amount and/or; SSI Letter/Statement issued within the past twelve (12) months containing current benefit amount and/or; Retirement, Pension and/or VA Payment Letter/Statement and/or; Proof of all other sources of income including workers compensation, alimony, child support, interests, and/or dividends, overtime, bonuses, etc. No member, officer or employee of the City of Pensacola, CRA or its designees or agents, no member of the City Council of the City of Pensacola, and no other public official of such locality who exercises any functions or responsibilities with respect to the Program during his tenure or for one (1) year thereafter shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with this Program. b) Initial Inspection A Rehabilitation Inspector will schedule and conduct an initial inspection of the home with the property owner present to develop an initial scope of work and itemized cost-estimate. Design and color selection options for cosmetic project improvements may be recommended for the property owner s selection. If a recommendation is provided, colors must be selected from the recommended palette. The Rehabilitation Inspector will document the inspection with detailed photographs. A bid proposal form will be attached to the approved work write-up, which constitutes an official bid packet. c) Funding Approval 16

13 Once the required Program Application, supporting documentation, cost estimates, and contractor documentation have been sufficiently submitted, the CRA s Assigned Program Administrator will review the completed application package for funding approval. Upon approval, the applicant shall provide proof of the required insurance and execute a Program Funding Agreement which establishes the terms, conditions and requirements of program participation, Lien Agreement, and all other applicable contractual forms as may be required. Following execution of the required documents, WFRPC shall issue a Notice to Proceed. d) Insurance Requirements The participant shall be required to keep all buildings and improvements on the property insured against loss or damage by fire or other such risks and matters as defined within the Funding Agreement and shall furnish proof of adequate hazard insurance on the property prior to project commencement. During the lien period, the participant must have, maintain and provide proof of the required insurance. The participant shall name the CRA as certificate holder on all insurance policies required under the agreement, and shall renew the required policies on an annual basis until the lien is satisfied or released. Required Documentation Proof of Insurance (See Funding Agreement for Full Details) Submit Insurance Renewals to CRA During Lien Period e) Lien Agreement/Closing Funding provided by the CRA pursuant to this program shall be secured by a zero interest deferred loan, forgivable over a three (3) or five (5) year period, as determined by applicant income and the property type, and measured from the date of execution of the Lien Agreement. If at any time during the loan term, the participant fails to comply with the terms of this program then the remaining prorated share of the loan shall become due and payable to the CRA within thirty (30) calendar days. f) Contractor Selection Once the bid packet is compiled, bids will be solicited from a list of pre-approved licensed and insured contractors. An award will be made to the lowest, most responsive bidder. Prior to the deadline for submission of bids, the Rehabilitation Inspector will coordinate a pre-bid meeting and site visit with interested contractor(s) to review initial rehabilitation specifications. Following a bid-opening, WFRPC shall select the lowest, most responsive bidder and shall provide notification of the selected contractor, along with all bids, proof of licensing or registration and insurance coverage to the CRA s assigned Program Administrator. 17

14 A conference including the property owner, the Rehabilitation Inspector, and the selected contractor shall be conducted at the home prior to issuance of a Notice to Proceed and execution of the required Program Funding Agreement. Each party shall receive a copy of the contract and scope of work listing all the repairs or improvements to be done. A walkaround of the home will be conducted to ensure that all parties are in agreement with the repairs and improvements to be done. All proposed improvements and rehabilitation work must comply with the City zoning and building code regulations and other local and state laws and ordinances. The contractor shall be responsible to obtain all applicable permits. The property owner shall not conduct any work or apply for a permit for any project component. Notice to Proceed shall not be issued and work shall not commence prior to execution of the required Program Funding Agreement and Lien Agreement by the property owner. 19. Project Commencement The project shall commence upon Notice to Proceed, and full project completion shall be achieved no more than 60 calendar days following such issuance. If the work is delayed at any time while in progress then the deadline may be extended by written authorization for such reasonable time as the WFRPC/CRA may jointly determine. The participant shall notify the WFRPC in writing of such delay within ten (10) calendar days of its occurrence. 20. Inspections WFRPC will monitor all work in progress. Change orders submitted by the contractor, shall be approved by WFRPC and executed by the property owner. Change orders shall be limited by the maximum funding amount of $35,000 (120% AMI/-), or $17,500 (120% AMI+). Change orders in excess of the allowable funding amounts shall be the responsibility of the property owner. The contractor may request a draw for 50% of the project cost after 60% of the work has been completed. Disbursement shall be subject to approval by WFRPC. WFRPC shall conduct a final inspection of all contracted repairs to ensure work was done in accordance with the program terms and applicable rehabilitation standards. Photographs of the completed project will be taken. 21. Project Completion/Final Payment After the final inspection is completed and all work is approved by WFRPC and the property owner, has submitted an Owner s Statement of Completion, the Contractor may submit the necessary documentation and request final payment. Required Documentation Completed Owner s Statement of Completion Form Completed Contractor s Affidavit Form for Each Authorized Contractor Certificate of Insurance Policies (See Program Funding Agreement) 18

15 Completed W-9 Form Upon the receipt of all required documentation and verification of program compliance, a payment request will be submitted to City of Pensacola CRA staff by WFRPC. The CRA will process payment as outlined in the Funding Agreement. Payment of the approved program funds, will be disbursed. 22. Code Violations During the term of the lien period, the property shall not incur any code violations. 23. Lien Satisfaction Upon a finding of satisfactory program compliance, the Lien Agreement will be released. CRA staff will file a Release of Lien in the official records of the Escambia County Clerk of Court, and the loan will be forgiven. 19

16 West Moreno Affordable Housing Target Area N K ST W MORENO ST Legend Westside CRA Affordable Housing Target Areas West Moreno 1 West Moreno 2 N I ST W BLOUNT ST W GODFREY ST N B ST N C ST W LLOYD ST ST ST W STRONG ST W DESOTO ST N A ST N B ST N K ST N I ST W GONZALEZ N D ST W BRAINERD N J ST N E ST N G ST N H ST N F ST N I ST W LEE ST W DES T OTO S

17 N E ST West Garden District Affordable Housing Target Area W GADSDEN ST KSO W JA C N ST N A ST N B ST N C ST N D ST LE ST N CO Y W LA RUA ST W JA CKSON ST Legend Westside CRA CRA Boundary Affordable Housing Target Areas West Garden District

18 CITY OF PENSACOLA COMMUNITY REDEVELOPMENT AGENCY FY 2018 COMMERCIAL FAÇADE IMPROVEMENT PROGRAM GUIDELINES The Commercial Façade Improvement Program, offered by the City of Pensacola s Community Redevelopment Agency (CRA), is provided as part of an overall redevelopment program which assists in the elimination of blight within the City s designated community redevelopment areas. This program is designed to leverage private investment to improve the exterior facades of eligible commercial, historical and culturally significant buildings and to complement other community revitalization efforts. Eligible participants will receive funding, up to $20,000, with a 50% owner-match for exterior façade improvements. Funding is secured by a mortgage loan, forgivable over a five (5) year period. The Commercial Façade Improvement Program Guidelines contain general information regarding program benefits, eligibility, terms and procedures. As these guidelines may change from time to time, we strongly encourage you to verify these requirements with CRA staff prior to submitting an application. FOR INFORMATION City of Pensacola Community Redevelopment Agency 222 W Main Street, 3 rd Floor, Pensacola, FL Web: Fax: M. Helen Gibson, AICP, CRA Administrator Telephone: hgibson@cityofpensacola.com Victoria D Angelo, Assistant CRA Administrator Telephone: vdangelo@cityofpensacola.com

19 FY 2018 Commercial Façade Improvement Program Guidelines CONTENTS PROGRAM BENEFITS...3 PROGRAM FUNDING FORGIVABLE DEFERRED MORTGAGE LOAN...3 ELIGIBILITY CRITERIA...3 A. ELIGIBILE PARTICIPANTS...3 B. ELIGIBLE PROPERTY...3 C. ELIGIBLE PROJECTS AND IMPROVEMENTS...4 PROCESS AND PROCEDURES...5 APPLICATION...5 PROJECT DESIGN AND COST ESTIMATES...5 CRA BOARD MEETING...6 FUNDING AGREEMENT AND DEPOSIT...6 NOTICE TO PROCEED/PROJECT COMMENCEMENT...6 PROJECT ADMINISTRATION AND MANAGEMENT...7 NOTICE OF COMPLETION/FUND DISBURSEMENT...7 MORTGAGE LOAN AGREEMENT/CLOSING...8 MORTGAGE SATISFACTION...8 EXHIBIT A: COMMERCIAL FACADE IMPROVEMENT PROGRAM TARGET AREAS...8 2

20 FY 2018 Commercial Façade Improvement Program Guidelines PROGRAM BENEFITS The Commercial Façade Improvement Program provides participants the opportunity to receive funding up to $20,000, in the form of a forgivable loan for façade improvements to eligible commercial, historical or culturally significant properties, as defined within Section B, below. PROGRAM FUNDING FORGIVABLE DEFERRED MORTGAGE LOAN All funding is based on a formula whereby participants may receive one dollar ($1.00) for every one dollar ($1.00) spent on the project or one-half (1/2) of the total project costs, up to $20,000. Funds are dispersed upon completion of approved façade improvement projects and secured over a five (5) year period by a deferred mortgage loan. This loan is forgiven on a daily basis over the course of five (5) years, such that at the end of the five (5) year period, the entire loan amount is deemed forgiven and the loan balance is zero. Example 1: Projects $40,000 or less Program Funds (50% Match): $15,000 Participant Responsibility: $15,000 Project Cost $30,000 Example 2: Projects in excess of $40,000 Program Funds ($20K Max): $20,000 Participant Responsibility: $30,000 Project Cost: $50,000 Since funding is not disbursed until project completion, the participant must agree to finance no less than the total cost of the improvement work, less one-half (1/2) of the total project costs, up to $20,000 (the amount of the program funds) during construction. ELIGIBILITY CRITERIA A. ELIGIBILE PARTICIPANTS Eligible participants include owners of eligible property as defined within Section B below. All participants who own or operate a business in conjunction with the proposed improvements must possess a valid City of Pensacola Business License. Ineligible participants include: National franchises Government or public agency owners or operators Tax exempt organizations, except those whose proposed project shall renovate a historical or culturally significant site. Religious institutions are ineligible regardless of historical or cultural significance. B. ELIGIBLE PROPERTY Eligible property must be located within a Commercial Façade Improvement Program Target Area Boundary (See Exhibit A, Commercial Façade Improvement Program Target Areas). Eligible property types include commercial, historical or culturally significant properties, as allowable within the subject target area sub-boundary in which the property is located. See Exhibit A, for maps identifying the target 3

21 FY 2018 Commercial Façade Improvement Program Guidelines area sub-boundaries and allowable property types within each sub-boundary. For the purpose of this program, commercial, historical and culturally significant properties are defined as follows: Commercial, Historical or Culturally Significant Properties Commercial Property: Commercial property uses include restaurants, retail sales, entertainment facilities, office, general business and service establishments which are oriented toward a general community market. Historical Property: Property which qualifies as a historic resource as defined by Chapter 1A-38, Rules of the Department of State Division of Historical Resources. Historic resources include buildings, sites, or structures which are individually listed in the National Register of Historic Places, a contributing property in a National Register listed historic district, designated as a historic property or landmark under the provisions of a local historic preservation ordinance or a contributing property in a historic district designated under the provisions of a local historic preservation ordinance. Culturally Significant Property: Property which is associated with events that have made a significant contribution to the broad patterns of our history; or is associated with the lives of significant persons in our past; or that embodies the distinctive characteristics of a type, period, or method of construction, or that represents the work of a master, or that possesses high artistic values, or that represents a significant and distinguishable entity whose components may lack individual distinction and is used for a non-residential purpose. Eligible properties must be current on ad-valorem property taxes, and shall not contain any outstanding tax liens or code violations which shall not be remedied through program participation. Ineligible properties include: Properties used entirely for residential purposes Single family structures Properties which have received an award under a City of Pensacola CRA Façade Improvement Program with the past five (5) years, as measured from the date of final award disbursement Properties used for the following purposes: hotels/motels, lounge and package stores, auto repair, sales and/or service stations, adult oriented enterprises, gun, pawn and drug paraphernalia stores C. ELIGIBLE PROJECTS AND IMPROVEMENTS Eligible improvements include exterior façade improvements which contribute to the visual enhancement of the property as viewed from the public right-of-way. Improvements must be comprehensive, incorporating enhancements/additions to several components of the existing façade. Examples of eligible improvements include painting, lighting (if attached to the structure), windows, doors, stucco, masonry work, tile, signage, canopies, awnings, fencing, landscaping, parking lot improvements and roofs (if visible from the public right-of-way). 4

22 FY 2018 Commercial Façade Improvement Program Guidelines Ineligible improvements include non-permanent fixtures, security systems, personal property, interior window coverings, equipment, foundation work, business equipment, operating capital or refinancing, new construction, and any improvements which are not visible from the right-of-way or are deemed to be inconsistent with redevelopment purposes and objectives. All project proposals are subject to eligibility review and approval by the CRA. The CRA will consider the following factors in determining project eligibility: Degree in which the improvements provide a public benefit to residents and businesses located within the community redevelopment area, and conform to the community s traditional architectural character Need for improvements (i.e. substandard condition of the building and/or façade) Potential for revitalization effects in the community Consistency with CRA goal and objectives, community redevelopment plans, and any other plans relative to the community redevelopment or target area PROCESS AND PROCEDURES APPLICATION To apply for funding under the Commercial Façade Improvement Program, prospective participants shall submit a Program Application and supporting documentation to the office of the Community Redevelopment Agency (CRA). CRA staff will review the application submittal and provide notice of eligibility determination. Required Supporting Documentation Property Deed City of Pensacola Business License (if applicable) Program participation is subject to the availability of funds. Funds are available on a first come first served basis and are subject to approval by the Community Redevelopment Agency (CRA). No member, officer or employee of the City of Pensacola, CRA or its designees or agents, no member of the City Council of the City of Pensacola, and no other public official of such locality who exercises any functions or responsibilities with respect to the Program during his tenure or for one (1) year thereafter shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with this Program. PROJECT DESIGN AND COST ESTIMATES Upon a finding of eligibility, Community Redevelopment Agency (CRA) staff will coordinate with the participant to obtain proposed design plans and price estimates. The participant must submit final design plans, and cost estimates as specified below prior to submittal to the CRA for funding approval. Required Supporting Documentation Design Plans and Elevations Cost Estimates The participant shall obtain at least three (3) written cost estimates from bonafide contractors for each individually required contract and secure proof of appropriate licensing or registration and insurance coverage. The participant shall notify the CRA of the contractor(s) which are to be selected and provide proof of appropriate 5

23 FY 2018 Commercial Façade Improvement Program Guidelines licensing, registration and insurance coverage. The participant shall not issue a Notice to Proceed or otherwise authorize work to commence prior to approval by the CRA and execution of the required Funding Agreement, as described below. Failure to comply with these terms will result in disqualification from program participation. Required Supporting Documentation Three (3) Written Price Proposals for Each Required Contract CRA Notification of Selected Contractor(s) Proof of Appropriate Licensing/Registration and Insurance Coverage for each Selected Contractor CRA BOARD MEETING Once the required Program Application, supporting documentation, design plans, cost estimates, and contractor documentation have been sufficiently submitted, the CRA will schedule the application to be considered for funding at the next available CRA meeting. If approved, CRA staff will issue a notification of award which will inform the Participant that the project proposal has been approved by the CRA. The Participant will then submit payment of a deposit, and execute a Funding Agreement with the CRA, as described below. FUNDING AGREEMENT AND DEPOSIT Deposit Each participant is required to provide a one hundred and fifty dollar ($150) deposit upon receipt of a notification of award. This deposit is non-refundable and is used to cover closing costs, fees, or taxes associated with the recording or filing of the program documents. Funding Agreement Upon receipt of the required deposit, the participant shall execute a Funding Agreement which establishes the terms, conditions and requirements of program participation. NOTICE TO PROCEED/PROJECT COMMENCEMENT The participant must issue a Notice to Proceed to the selected contractor within thirty (30) days of execution of the Funding Agreement. The date of written Notice to Proceed, issued by the participant to the contractor, shall be the commencement date. The participant shall notify the CRA of the date of commencement by providing to the CRA a copy of the Notice to Proceed within three (3) days of issuance. Failure to issue the Notice to Proceed as prescribed shall be deemed a breach of contract and may immediately render the Funding Agreement null and void. Required Supporting Documentation CRA Notification of Date of Commencement/Copy of Notice to Proceed The participant shall achieve full project completion no more than 180 calendar days following the issuance of the Notice to Proceed. If the work is delayed at any time while in progress then the deadline may be extended by written authorization for such reasonable time as the CRA may determine. The participant shall notify the CRA in writing of such delay within ten (10) calendar days of its occurrence. Obligation to Refrain from Discrimination Participants, by applicable law, shall not exclude from participation or discriminate against any contractor on the 6

24 basis of age, race, color, religion, sex, handicap and/or disability, or national origin. FY 2018 Commercial Façade Improvement Program Guidelines Insurance Requirements The participant shall be required to keep all buildings and improvements on the property insured against loss or damage by fire or other such risks and matters as defined within the Funding Agreement and shall furnish proof of adequate hazard insurance on the property prior to project commencement. For complete insurance requirements refer to the Funding Agreement. Required Supporting Documentation Proof of Insurance (See Funding Agreement for Full Details) PROJECT ADMINISTRATION AND MANAGEMENT Participants shall be fully responsible for managing the construction of their respective project including, without limitation, obtaining bids, selecting a licensed contractor(s), obtaining all necessary approvals, permits, and insurances, overseeing work of contractors, and paying all invoices for the work, materials, and supplies. The participant shall cooperate with the CRA during the full course of the project and shall agree to provide the CRA or its agent s access to inspect for compliance with approved plans and specifications. Any modifications to the final approved plans or changes to the construction documents shall require prior review and approval by the CRA. No additions, deletions or modifications to the work shall be authorized unless by a written Change Order signed by the participant and contractor and approved by CRA staff. Any payment for additional work shall be the responsibility of the participant. Except in an emergency endangering life or property, failure to obtain the required CRA approval shall invalidate the Funding Agreement and cause the agreement to be terminated. NOTICE OF COMPLETION/FUND DISBURSEMENT Program funds will not be disbursed until: (1) the City Building Inspections Department renders written determination that construction of the Project has been satisfactorily completed, (2) the Participant has issued a Statement of Completion, (3) the Participant provides proof, satisfactory to the CRA (including, but not limited to, a statement of final project costs, payments made and balance due and copies of all original invoices with affidavits or proof of payment), that all payments due the Contractors, except for Program funds, have been made, and (4) the Participant has delivered to the CRA a complete release of all liens arising out of the Contracts covering all labor, materials, and equipment for which a lien could be filed, or the Contractors have issued a bond in an amount needed to satisfy the amount owed for each such lien. Upon the receipt of all required payment documentation and verification of program compliance, the CRA will process payment as outlined in the Funding Agreement. Payment of the approved program funds, will be disbursed, and secured by a deferred mortgage loan. Required Supporting Documentation Completed Owner s Statement of Completion Form Itemized Contractor Invoices and Proof of Payment (Receipts, Affidavits) Completed Contractor s Affidavit Form for Each Authorized Contractor Certificate of Insurance Policies (See Program Funding Agreement) Completed W-9 Form 7

25 FY 2018 Commercial Façade Improvement Program Guidelines MORTGAGE LOAN AGREEMENT/CLOSING Funding provided by the CRA pursuant to this program shall be secured by a zero interest deferred mortgage loan, forgivable over a five (5) year period measured from the date of execution of Mortgage Documents, defined as documents related to securing the loan, including but not limited to a Mortgage and Security Agreement, Promissory Note and Assignment of Leases, Rents and Profits (as applicable). The participant shall be liable for all closing costs, fees, or taxes associated with the recording or filing of the Mortgage Documents, which shall be payable from the required program deposit. During the term of the Mortgage and Security Agreement, the participant shall not cause or allow the CRA funded improvements to be modified, altered, removed or demolished and shall not cause or allow the property to be sold, conveyed, transferred, demolished, or converted to one hundred percent (100%) residential use. If at any time during the agreement term, the participant fails to comply with these terms then the remaining prorated share of the loan shall become due and payable to the CRA within thirty (30) calendar days. Code Violations During the term of the mortgage lien period, the property shall not incur any code violations. Insurance Requirements During the term of the mortgage lien period, the participant shall maintain insurance in accordance with the Mortgage and Security Agreement. The participant shall name the CRA as certificate holder on all insurance policies required under the agreement, and shall renew the required policies on an annual basis until the mortgage lien is satisfied or released. Required Supporting Documentation Submit Insurance Renewals to CRA During Mortgage Lien Period MORTGAGE SATISFACTION Upon a finding of satisfactory program compliance, the Mortgage and Security Agreement will be released. CRA staff will file a Satisfaction of Mortgage in the official records of the Escambia County Clerk of Court, and the loan will be forgiven. EXHIBIT A: COMMERCIAL FACADE IMPROVEMENT PROGRAM TARGET AREAS See pages

26 9 FY 2018 Commercial Façade Improvement Program Guidelines

27 10 FY 2018 Commercial Façade Improvement Program Guidelines

28 11 FY 2018 Commercial Façade Improvement Program Guidelines