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HomeMy WebLinkAbout4150 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. 1 (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. 2 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: 3 "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" 4 ; 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. 5 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 6 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. 7 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. 8 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 9 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 10