Fort Walton Beach Council agenda — 02-14-12 cra — reading text

Packet Pg. 62  Re., o, iog Lnan Fund Community Redeve, o ment Agency City of Fort Walton Beach Purpose Purpose & & OverviewOverview TheThe CityCity ofof FortFort WaltonWalton BeachBeach revolvingrevolving loanloan fundfund isis anan incentiveincentive program program availableavailable forfor newnew andand expandingexpanding businessesbusinesses locatedlocated withinwithin thethe CommunityCommunity RedevelopmentRedevelopment AreaArea ( ( CRA).CRA). TheThe purposepurpose ofof thethe programprogram isis toto contribute contribute toto thethe overalloverall goalgoal ofof eliminating eliminating blightblight inin thethe CRACRA byby enhancingenhancing thethe appearance appearance andand conditioncondition ofof commercialcommercial structuresstructures inin thethe CityCity asas wellwell asas providingproviding aa fundingfunding mechanismmechanism toto overcomeovercome thethe financialfinancial hurdleshurdles facingfacing smallsmall businessbusiness located located inin anan urbanurban corecore whenwhen lookinglooking toto expand.expand. TheThe programprogram isis furtherfurther intendedintended toto encourage encourage privateprivate investmentinvestment throughthrough publicpublic privateprivate partnershipspartnerships andand toto provideprovide anan attractiveattractive environmentenvironment forfor businessbusiness activity,activity, growth,growth, andand retention.retention. ProgramProgram DescriptionDescription TheThe Revolving Revolving LoanLoan FundFund ProgramProgram maymay offeroffer newnew oror expandingexpanding businessesbusinesses inin thethe CRACRA betweenbetween 10,10, 000000 andand$ $ 100,100, 000000 forfor qualifying qualifying expenses expenses towardstowards obtainingobtaining conventionalconventional financing.financing. TheThe loansloans areare typicallytypically offeredoffered atat anan interestinterest raterate belowbelow oror wellwell belowbelow thethe PrimePrime raterate withwith shortshort - - termterm 22- - 55 year)year) flexibleflexible paybackpayback terms.terms. TheThe loanloan programprogram willwill bebe administeredadministered byby locallocal banksbanks throughthrough aa partnershippartnership withwith thethe CRA.CRA. TheThe fundsfunds wil wil bebe providedprovided byby thethe CRACRA onon anan annualannual basisbasis andand wil wil bebe dependent dependent onon annualannual TIFTIF revenues.revenues. AllAll loanloan applicationsapplications mustmust bebe jointlyjointly approvedapproved byby thethe administeringadministering bankbank andand thethe CRACRA BoardBoard ofof Commissioners.Commissioners. Eligibility Eligibility PropertiesProperties mustmust bebe locatedlocated withinwithin thethe boundaries boundaries ofof thethe CommunityCommunity Redevelopment Redevelopment Area.Area. EligibleEligible businessesbusinesses maymay includeinclude generalgeneral commercial,commercial, retail,retail, lightlight manufacturing manufacturi / ng / industriali,ndustrial, andand serviceservice industries.industries. BusinessesBusinesses shouldshould submitsubmit anan applicationapplication alongalong withwith aa businessbusiness plan,plan, andand investinvest aa minimumminimum 15%15% developer developer equityequity intointo thethe business,business, asas wellwell asas createcreate newnew jobsjobs forfor thethe area.area. TheThe propertyproperty maymay bebe soldsold duringduring thethe loanloan period.period. However,However, ifif thisthis occurs,occurs, thethe remainingremaining balancebalance onon thethe loanloan willwill eithereither becomebecome duedue andand payablepayable atat thethe propertyproperty salesale closingclosing oror maymay transfertransfer toto thethe newnew owner,owner, onon thethe decisiondecision ofof bothboth partiesparties ofof thethe salesale andand approvalapproval byby thethe bankbank andand thethe CRA.CRA. Applications will be evaluated to ensure consistency with the goals and objectives of the CRA Plan and conformance with the City' s Land Development Code, and based on the available budget. Submittal Requirements Program applicants must submit the following documents and materials: Revolving loan fund application. Business plan Proof of 15% equity Any information required by the administering bank to obtain financing Exclusions and Conditions The applicant shall be responsible for obtaining all necessary permits for the improvements to be installed. Program funds cannot be used to pay for permit fees, routine maintenance and labor performed by a non -licensed contractor. Program funds will not be awarded if subject property has any outstanding or pending code violations or liens. Issues must be addressed and fully corrected prior to the star of the project. All improvements must conform to the city' s Land Development Code and be consistent with the goals and objectives of the CRA Plan. The City reserves the right to amend the program guidelines and application process from time to time as needed Process 1. Contact City staff to set up a Pre -Application meeting with City staff and bank representatives to review project. 2. Submit the revolving loan application and required documents. 3. City staff will review the application for compliance with the LDC and CRA Plan and render a decision to the bank within 20 days. 4. Agreement executed and closing of the loan. 5. Project begins. 6. Applicant repays loan over period specified in executed agreement.  I zz.b I Lazo Vaioe Investment P — g- Comm ., ity Rede e name t Agency uCity or Fort Wanton Beau Purpose & Overview The City of Fort Walton Beach Land Value Investment Program is an incentive program located within the Community Redevelopment Area ( CRA), which is intended to support growth and investment in our community. The purpose of the program is to contribute to the overall goal of eliminating blight in the CRA by stimulating revitalization and returning properties to productive use. By investing in the property, the CPA turns a blighted and undesirable location into an enticing investment for private developers. Program Description This program identifies properties throughout the CRA which are abandoned or foreclosed and determines whether or not acquisition and rehabilitation of the property will encourage private investment. Once identified, qualified properties are purchased and improved prior to returning them to the market for sale or lease to private developers. CPA funds can be used to acquire and rehabilitate properties within the CRA with the goal of returning the property back to market value for sale or lease by the CRA to private developers. Priorities for Use of Property Neighborhood revitalization Return of property to productive tax paying status Ilomeownership and affordable housing If necessary, remediation of Brownfield sites to encourage economic development. Priorities of Interested Purchasers Qualified businesses that will hold title to the property on a long -term basis for eligible commercial businesses ( including rental of property). Packet Pg. 66 .. 1  Individuals who plan to occupy the property on a long term (minimum of 1 year) basis. Individuals and entities that were the prior owners of the property at the time of the tax foreclosure which transferred title to the CRA shall be ineligible to be the transferee of such property under this program. Eligibility Properties must be located within the boundaries of the Community Redevelopment Area. Eligible properties are those found in a blighted or undcrused condition. Each property will be evaluated and must provide an opportunity to advance the goals and objectives of the CRA Plan Exclusions and Conditions All improvements must conform to the city' s Land Development Code and be consistent with the goals and objectives of the CRA Plan. The City reserves the right to amend the program guidelines and application process from time to time as needed Process I. Properties will be identified as a property that is blighted and or undemsed. 2. The location and condition of the property will be evaluated for potential improvements. 3. The property is acquired using CRA funds. 4. The property is improved and a plan is developed for reentry into the marketplace. 5. The property is marketed to private developers for the highest and best use. 6. The developer is selected through a competitive bidding process. 7. The sale or lease agreement is executed and the development is completed. Required Applicants shall be required to maintain all improvements completed under this program.  I 7.z.c I Purpose & Overview The City of Fort Walton Beach Nuisance Abatement Program is an incentive program available for properties located within the Community Redevelopment Area ( CRA). The purpose of the program is to contribute to the overall goal of eliminating blight in the CPA through the removal of unsafe conditions and by enhancing the appearance and condition of structures in the City. The program is intended to assist Code Enforcement efforts with the removal of blight through providing a funding mechanism to bring into compliance properties in violation. Program Description The Nuisance Abatement Program offers the City' s Code Enforcement Division and property owners up to $ 10, 000 to complete the necessary maintenance or repairs to properties found in violation of city codes and ordinances. The Program also allows the City to lien the property for all expenses related to the nuisance abatement process. Eligibility Eligible repairs include but are not limited to the following: Exterior painting Window glass and screens Stairs and railings Rafter, soffit and fascia repair Porches Yard maintenance and debris removal (done in association with other building repairs) Derelict structure demolition I Packet P9. 67 I Properties must be located within the boundaries of the Community Redevelopment Area and have received a Notice of violation from the Code Enforcement Division. Eligible properties include all residential and commercial properties within the CRA. Requests for funding will be evaluated to ensure consistency with the goals and objectives of the CRA Plan and conformance with the