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ORDINANCE NO. 2009-4162
An ordinance of the City of Sanford, Florida amending the
Ordinance Number 2009-4150 pertaining to a supplemental
grant program in addition to the loan subsidy program to
provide for economic development and other public benefits
to the City and the citizens of the City; providing for
amendment to Section 2 of Ordinance Number 2009-4150
relating to 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 and the ratification of legislative findings and intent;
providing for codification in the City Code of the City of
Sanford; providing for severability; and providing for an
effective date.
Be it enacted by the People of the City of Sanford, Florida:
Section 1. Section 2 of Ordinance Number 2009-4150 is hereby
amended to read as follows:
Creation of economic development commercial loan subsidy program;
purposes; responsibilities; policies; procedures; alternative grant program.
(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.
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(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
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
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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(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.
(D. 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
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). In the event that an owner of property which would be otherwise
eligible for loan subsidy funding has engaged in or entered financing in a manner
which the City determines is not conducive to a loan subsidy being granted by
the City, the City may enter grant agreements with such property owners
provided that the City is attaining substantially or more of the same economic
and other benefits and has security that is substantially the same or greater than
that the City would enjoy under a loan subsidy award. Such grants may be
awarded under conditions that address the unique nature of the financial
arrangement within which context the property is held while substantially
addressing legal requirements, benefits to the City and protections afforded the
City as set forth in this Ordinance.
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!r:l1 The following criteria will be used in evaluating applications for loan
subsidies or for grants:
(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.
(0). Applications that are on file with the City on or after the effective
date of this Ordinance shall be eligible for consideration for the award of loan
subsidies and grants notwithstanding the fact that renovation work may have
previously commenced.
Section 2. 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.
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Section 3.
Conflicts.
All ordinances or part of ordinances in conflict with this Ordinance are
hereby repealed.
Section 4.
Savings; ratification of legislative findings and intent.
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. The legislative findings
and intent adopted in Ordinance Number 2009-4150 are hereby ratified and
affirmed.
Section 5. 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 6. 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 7. Effective Date.
This Ordinance shall take effect immediately upon passage and adoption.
Passed and adopted this 23rd day of February, 2009.
City Commission of the City of
Sanford, Florida
Seminole County, Florida
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C:,_ ~ ~<:.~ c:=:4( ...---,
Linda uhn, Mayor ;-
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Approved as to form and
legality'
Certificate
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. 4162, Passed
and Adopted by the City Commission of the City of Sanford, Florida, on the 23rd
day of February, 2009, was posted at the front door of the City Hall in the City of
Sanford, Florida, on the 25th day of February, 2009. J.!Jta, .
J~~g~e~y ~
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