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ORDINANCE NO. 2009-4150
An ordinance of the City of Sanford, Florida amending the City
Code of the City of Sanford by providing for a supplemental
loan program to provide for economic development and other
public benefits to the City and the citizens of the City;
providing for legislative findings and intent; providing for the
creation of an economic development commercial loan
subsidy program, program purposes, program
responsibilities, program policies and program procedures;
providing for implementing administrative actions; providing
for conflicts; providing for a savings provision; providing for
codification in the City Code of the City of Sanford; providing
for severability; and providing for an effective date.
Whereas, the City Commission of the City of Sanford has the desire to
ensure that the City of Sanford and its environs remain desirable for economic
development of a positive nature for the benefit of the citizens of the City of
Sanford; and
Whereas, Section 166.021 (9), Florida Statutes, provides as follows:
"(9)(a) The Legislature finds and declares that this state faces
increasing competition from other states and other countries for the
location and retention of private enterprises within its borders.
Furthermore, the Legislature finds that there is a need to enhance
and expand economic activity in the municipalities of this state by
attracting and retaining manufacturing development, business
enterprise management, and other activities conducive to economic
promotion, in order to provide a stronger, more balanced, and
stable economy in the state, to enhance and preserve purchasing
power and employment opportunities for the residents of this state,
and to improve the welfare and competitive position of the state.
The Legislature declares that it is necessary and in the public
interest to facilitate the growth and creation of business enterprises
in the municipalities of the state.
(b) The governing body of a municipality may expend public funds
to attract and retain business enterprises, and the use of public
funds toward the achievement of such economic development
goals constitutes a public purpose. The provisions of this chapter
which confer powers and duties on the governing body of a
municipality, including any powers not specifically prohibited by law
which can be exercised by the governing body of a municipality,
shall be liberally construed in order to effectively carry out the
purposes of this subsection.
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(c) For the purposes of this subsection, it constitutes a public
purpose to expend public funds for economic development
activities, including, but not limited to, developing or improving local
infrastructure, issuing bonds to finance or refinance the cost of
capital projects for industrial or manufacturing plants, leasing or
conveying real property, and making grants to private enterprises
for the expansion of businesses existing in the community or the
attraction of new businesses to the community.
(d) Nothing contained in this subsection shall be construed as a
limitation on the home rule powers granted by the State
Constitution for municipalities"
; and
Whereas, Section 187.201 (21), Florida Statutes, (as part of the State
Comprehensive Plan) provides as follows:
"(21) THE ECONOMY.--
(a) Goal. --Florida shall promote an economic climate which
provides economic stability, maximizes job opportunities, and
increases per capita income for its residents.
(b) Policies.--
1 . Attract new job-producing industries, corporate headquarters,
distribution and service centers, regional offices, and research and
development facilities to provide quality employment for the
residents of Florida.
2. Promote entrepreneurship and small and minority-owned
business startup by providing technical and information resources,
facilitating capital formation, and removing regulatory restraints
which are unnecessary for the protection of consumers and society.
3. Maintain, as one of the state's primary economic assets, the
environment, including clean air and water, beaches, forests,
historic landmarks, and agricultural and natural resources.
4. Strengthen Florida's position in the world economy through
attracting foreign investment and promoting international banking
and trade.
5. Build on the state's attractiveness to make it a leader in the
visual and performing arts and in all phases of film, television, and
recording production.
6. Promote economic development for Florida residents through
partnerships among education, business, industry, agriculture, and
the arts.
7. Provide increased opportunities for training Florida's workforce
to provide skilled employees for new and expanding business.
8. Promote economic self-sufficiency through training and
educational programs which result in productive employment.
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9. Promote cooperative employment arrangements between
private employers and public sector employment efforts to provide
productive, permanent employment opportunities for public
assistance recipients through provisions of education opportunities,
tax incentives, and employment training.
10. Provide for nondiscriminatory employment opportunities.
11. Provide quality child day care for public assistance families and
others who need it in order to work.
12. Encourage the development of a business climate that
provides opportunities for the growth and expansion of existing
state industries, particularly those industries which are compatible
with Florida's environment.
13. Promote coordination among Florida's ports to increase their
utilization.
14. Encourage the full utilization by businesses of the economic
development enhancement programs implemented by the
Legislature for the purpose of extensively involving private
businesses in the development and expansion of permanent job
opportunities, especially for the economically disadvantaged,
through the utilization of enterprise zones, community development
corporations, and other programs designed to enhance economic
and employment opportunities"
; and
Whereas, the City Commission of the City of Sanford desires that the
economy of the City of Sanford be one that is vibrant, creative, flexible, dynamic,
and modern as well as an economy that attracts and retains high quality
businesses and economic generators to the City of Sanford; and
Whereas, the City Commission of the City of Sanford desires that the
maximum possible level of cooperation, collaboration and coordination occur
between the City of Sanford and the State of Florida, regional economic
development entities, Seminole County, other local government entities and
private sector organizations; and
Whereas, the City Commission of the City of Sanford has concluded that
a positive means and method to economically develop the City of Sanford in an
effective and beneficial manner would be to create a loan program within the City
of Sanford which supplements and subsidizes the rehabilitation of commercially
viable parcels of real property located within the City Limits of the City of Sanford;
and
Whereas, Section 163.387(1 )(a), Florida Statutes, relates, among other
things, to the use of tax increment revenues deposited in the redevelopment trust
fund, and states, in pertinent part, that:
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"After approval of a community redevelopment plan, there may be
established for each community redevelopment agency created
under s. 163.356 a redevelopment trust fund. Funds allocated to
and deposited into this fund shall be used by the agency to finance
or refinance any community redevelopment it undertakes pursuant
to the approved community redevelopment plan"
; and
Whereas, Section 163.387(6), Florida Statutes, also states, in pertinent
part, that:
"Moneys in the redevelopment trust fund may be expended from
time to time for undertakings of a community redevelopment
agency as described in the community redevelopment plan for the
following purposes, including, but not limited to:
(a) Administrative and overhead expenses necessary or incidental
to the implementation of a community redevelopment plan adopted
by the agency.
(b) Expenses of redevelopment planning, surveys, and financial
analysis, including the reimbursement of the governing body or the
community redevelopment agency for such expenses incurred
before the redevelopment plan was approved and adopted.
(c) The acquisition of real property in the redevelopment area.
(d) The clearance and preparation of any redevelopment area for
redevelopment and relocation of site occupants within or outside
the community redevelopment area as provided in s. 163.370.
(e) The repayment of principal and interest or any redemption
premium for loans, advances, bonds, bond anticipation notes, and
any other form of indebtedness.
(f) All expenses incidental to or connected with the issuance, sale,
redemption, retirement, or purchase of bonds, bond anticipation
notes, or other form of indebtedness, including funding of any
reserve, redemption, or other fund or account provided for in the
ordinance or resolution authorizing such bonds, notes, or other
form of indebtedness.
(g) The development of affordable housing within the community
redevelopment area.
(h) The development of community policing innovations"; and
Whereas, the City Commission of the City of Sanford has
concluded that the expenditures set forth in this Ordinance will be
used by the City to finance community redevelopment undertaken
pursuant to the approved community redevelopment plan and for
purposes authorized by controlling law"
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; and
Whereas, Ordinance Number 3282 reserves to the City Commission of
the City of Sanford "[t]he power to approve the acquisition, demolition, removal,
or disposal of property" within the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area; and
Whereas, Ordinance Number 3285 provides that monies deposited within
the redevelopment trust fund for the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area" . . . may not be spent for
community redevelopment projects without the permission of the City
Commission of the City of Sanford"; and
Whereas, this Ordinance is enacted pursuant to the home rule powers of
the City of Sanford as set forth at Article VIII, Section 2, of the Constitution of the
State of Florida; Part III, Chapter 163, Florida Statutes; Chapter 166, Florida
Statutes; Ordinance Numbers 3282 and 3285; Resolution Number 1718; and
other applicable controlling law.
Now, therefore, be it enacted by the People of the City of Sanford, Florida:
Section 1. Legislative findings and intent.
(a). The City Commission of the City of Sanford hereby adopts and
incorporates into this Ordinance the recitals (whereas clauses) to this Ordinance,
the City staff report and City Commission agenda memorandum relating this
Ordinance.
(b). The City of Sanford has complied with all requirements and
procedures of Florida law in processing and advertising this Ordinance.
(c). Although not a land development regulation, this Ordinance is
consistent with the goals, objectives and policies of the Comprehensive Plan of
the City of Sanford.
(d). The City Commission of the City of Sanford hereby finds and
concludes that the provisions of this Ordinance are consistent with the provisions
of the approved Redevelopment Plan and Finding of Necessity for the Lake
Monroe Waterfront and Downtown Sanford Community Redevelopment Area,
dated November 21, 1995; and
(e). The City Manager shall rely upon the intent and findings of the City
Commission of the City of Sanford as set forth in this Ordinance as guiding
principles in developing and taking all necessary implementing actions as set
forth in this Ordinance.
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Section 2. Creation of economic development commercial loan
subsidy program; purposes; responsibilities; policies; procedures.
(a). The City Commission of the City of Sanford, in conjunction with the
Community Redevelopment Agency of the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area, hereby creates and
establishes the City of Sanford Economic Development Commercial Loan
Subsidy Program to be implemented by the Agency.
(b). The purpose of the Program is to encourage the renovation and
productive use of buildings in the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area which shall be within the
City Limits of the City of Sanford. The Program will assist business owners to
redevelop properties. The Program will provide a subsidy, under appropriate
circumstances, to effectively reduce the interest rate on market loans for building
renovations to one percent (1 %) amortized for a twenty (20) year term based on
the loan interest rate, as established in the application and as may approved in
the application process set forth in this Ordinance, which shall be the loan
interest rate at time of loan closing.
(c). Loan proceeds may only be used for the rehabilitation of properties
with-in the Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area.
(d). Only real property that is assigned a commercial zoning
classification consistent with the City's Comprehensive Plan and that will be used
for a non-residential or mixed use purpose (as set forth in a binding development
order) are eligible under the Program for subsidy assistance.
(e). Loan subsidies may be made only to the property owner and may
only be used for renovations only and not for the purchase price of a parcel of
real property.
(f). Normative loan underwriting criteria and documentation must be
satisfied as part of the transaction to protect the City's interests, as well as the
interests of the Community Redevelopment Agency of the Sanford Lake Monroe
Waterfront and Downtown Sanford Community Redevelopment Area, under the
authority and guidance of the Finance Director in conjunction with the City
Attorney.
(g). Loans by the Community Redevelopment Agency of the Sanford
Lake Monroe Waterfront and Downtown Sanford Community Redevelopment
Area under the Program shall be secured by a declining balance property
rehabilitation lien, in a form of legal instrument approved by the City Attorney, for
a term of ten (10) years. Should the owner sell or transfer title to the real property
during this term the prorated balance of the City's subsidy shall be paid to the
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City at the time of closing. Should the applicant maintain ownership for the full
ten (10) year term, the loan provided by the Agency shall be fully amortized and
shall be satisfied of record in a form acceptable to the City Attorney.
(h). The maximum total loan amount to be subsidized is three hundred
thousand dollars ($300,000.00). The subsidy rate is based on a projected twenty
(20) year amortization.1
(i). Neither the City nor any of its agencies to include, but not limited to,
the Community Redevelopment Agency of the Sanford Lake Monroe Waterfront
and Downtown Sanford Community Redevelopment Area, shall in any way
guarantee the underlying loan for the real property and the City does not pledge
its full faith and credit to any extent by enacting or implementing this Ordinance
and shall not be deemed to have done so to any degree or extent.
(j). The loan applicant must submit documentation to the Community
Redevelopment Agency of the Sanford Lake Monroe Waterfront and Downtown
Sanford Community Redevelopment Area detailing the renovation to be
performed as well as details concerning the proposed loan. If approved by the
Agency, the Agency will then issue a letter approving the subsidy subject to
normal underwriting criteria as approved and established by the Finance Director
in conjunction with the City Attorney.
(k). Once the loan is approved, the applicant must submit full details of
the proposed transaction to the Community Redevelopment Agency of the
Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area. The amount of the subsidy will be fixed and the funds will
be released to coincide as nearly as possible to the effective date of the closing
of the loan. Escrow accounts may be established in conjunction with the City
Attorney as needed.
(I). The loan documents shall include, but not be limited to, documents
to be filed of record which protect the lienhold interests of the Community
Redevelopment Agency of the Sanford Lake Monroe Waterfront and Downtown
Sanford Community Redevelopment Area and shall provide that the City Attorney
1 An example of the Program follows: A building owner needs to rehabilitate a structure located
within the Sanford Lake Monroe Waterfront and Downtown Sanford Community Redevelopment
Area at a cost of $150,000. A market rate loan is currently available at 6.5% amortized for 20
years. A 1 %, 20-year loan of $150,000 will require a monthly loan payment of $690.00. That
payment will support a market rate loan at 6.5% of $ 92,550. The City Community
Redevelopment Agency of the Sanford Lake Monroe Waterfront and Downtown Sanford
Community Redevelopment Area will provide a 0% deferred payment loan of $ 57,450 into an
escrow account. This loan will decline at the rate of 1/12Oth for each month over the 10-year
period, as long as the borrower continues to own and maintain the property. At the end of 10
years the loan is forgiven and no payback is required by the borrower. Should the borrower sell or
transfer title, in any manner or degree, to the property during the lien term the Agency would
receive the remaining balance of the loan based upon the length of time the borrower has met the
conditions for loan.
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must be notified should the real property which is the subject of the loan be sold,
transferred, assigned or encumbered in any way and that all such actions are
subject to approval by Community Redevelopment Agency of the Sanford Lake
Monroe Waterfront and Downtown Sanford Community Redevelopment Area
after seeking advise and counsel from the City Attorney.
(m). The following criteria will be used in evaluating applications:
(1). Businesses that due to their success will attract other businesses to
the Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area shall be encouraged to apply and participate.
(2). Renovation projects that will spur additional development and
private investment shall be encouraged to apply and participate.
(3). Renovation projects that will attract desirable new businesses and
create an effective merchandise mix shall be encouraged to apply and
participate.
(4). Renovation projects that will have a substantial positive visual and
aesthetic impact to Sanford Lake Monroe Waterfront and Downtown Sanford
Community Redevelopment Area shall be encouraged to apply and participate.
(5). Renovation projects that will result in filling vacant retail space shall
be encouraged to apply and participate.
(6). Renovation projects that will increase property value(s) shall be
encouraged to apply and participate.
(7). Renovation projects that will increase employment opportunities
with the Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area shall be encouraged to apply and participate.
(8). Renovation projects that work in favorable concert with other major
developments by providing enhanced activities for the Sanford Lake Monroe
Waterfront and Downtown Sanford Community Redevelopment Area shall be
encouraged to apply and participate.
Section 3. Implementing Administrative Actions.
The City Manager, or designee, is hereby authorized and directed to
implement the provisions of this Ordinance and to take any and all necessary
administrative actions to include, but not be limited to, the adoption of
administrative rules.
Section 4.
Conflicts.
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All ordinances or part of ordinances in conflict with this Ordinance are
hereby repealed.
Section 5.
Savings.
The prior actions of the City of Sanford in implementation of its economic
development and related activities and the funding of rehabilitation efforts within
the Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area are hereby ratified and affirmed.
Section 6. Severability.
If any section, sentence, phrase, word, or portion of this Ordinance is
determined to be invalid, unlawful or unconstitutional, said determination shall not
be held to invalidate or impair the validity, force or effect of any other section,
sentence, phrase, word, or portion of this Ordinance not otherwise determined to
be invalid, unlawful, or unconstitutional.
Section 7. Codification.
This Ordinance shall be codified in the City Code of 'the City of Sanford;
provided, however, that Sections 4, 5, 6, 7 and 8 shall not be codified. The Code
Codifier is granted broad and liberal authority to change section numbers in the
current City Code and take other appropriate actions as set forth in Section 1-10
of the City Code. The footnoted example shall be codified.
Section 8. Effective Date.
This Ordinance shall take effect immediately upon passage and adoption.
Passed and adopted this 26th day of January, 2009.
City Commission of the City of
Sanford, Florida
Seminole County, Florida
~~~~
Linda Kuhn, Mayor
Attest:
/, ,'\k:;d;~
yPuJi-/( .Wl~'f:#~v
i{Janet Dougherty, City 61erk
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Approved as to form and
legality:
~ illiam L. Colbert,
City Attorney / -J-
h(l rJt>//~ IV' ~o 0 I
~ ~rn-rJJ' C, 'P7 f};rv~ertificate
I, Janet R. Dougherty, City Clerk of the City of Sanford, Florida, do hereby
certify that a true and correct copy of the foregoing Ordinance No. 4150, Passed
and Adopted by the City Commission of the City of Sanford, Florida, on the 26th
day of January, 2009, was posted at the front door of the City Hall in the City of
Sanford, Florida, on the 29th day of January, 2009.
~f(-Mu~
JanetR.Dougherty
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