4368 Economic Dev. Commercial Loan Subsidy Ordinance No. 2016-4368
An Ordinance of the City of Sanford, Florida providing for further
amendments to Section 2-369 of the Code of Ordinances of the City
of Sanford with regard to the economic development commercial
loan subsidy program and priority of interests arising from grants
and liens; providing for legislative and administrative findings;
eliminating the requirement that the City have a priority position as
to loans and changes in title resulting therefrom; providing for a
savings provision; providing for codification as well as the
correction of scrivener's errors; providing for conflicts; providing for
severability and providing for an effective date.
Be It Enacted By The People Of The City Of Sanford, Florida:
Section 1. Legislative And Administrative Findings.
The City of Sanford has complied with all requirements and procedures of
Florida law in processing and advertising this Ordinance.
Section 2. Amendment To Section 2-369, City Code.'
Section 2-369 of the Code of Ordinances of the City of Sanford is substantially
revised and amended to read as follows:
Sec. 2-369. - 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.
For purposes of this Ordinance, underlined type shall constitute additions to the original text, *** shall constitute
ellipses to the original text and text designated with stri�ethreugh shall constitute deletions to the original text.
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(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 amortized for a 20-year term
based on the loan interest rate, as established in the application and as may be
approved in the application process set forth in this article, which shall be the loan
interest rate at time of loan closing.
(c) Loan proceeds may only be used for the rehabilitation of properties within 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 nonresidential 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 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. Notwithstanding the foregoing, if
a recipient of a loan subsidy, who enters an agreement to implement the subsidy after
November 1 2010 De bei: 1,2944, receives financing from a commercial bank or
other financial institution of a similar nature that is chartered' under either Federal or
Florida law (but not private loan funding of any nature); the position of the public funds
guarantees may be placed in a secondary position to the position of the bank/financial
institution.
(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 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-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.
Notwithstanding the foregoing, if a recipient of a loan subsidy, who enters an agreement
to implement the subsidy after November 1 2010 Desembe,: 1, 2044, receives
financing from a commercial bank or other financial institution of a similar nature that is
chartered under either Federal or Florida law (but not private loan funding of any
nature); the position of the public funds guarantees may be placed in a secondary
position to the position of the bank/financial institution.
I A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations,
and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained
government permission on some level to do business in the banking sector.
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(h)-The maximum total loan amount to be subsidized is $300,000.00. The subsidy rate
is based on a projected 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 article and shall not be deemed to have done
so to any degree or extent. Notwithstanding the foregoing, if a recipient of a loan
subsidy, who enters an agreement to implement the subsidy after November 1 2010
De embeF1,2044, receives financing from a commercial bank or other financial
institution of a similar nature that is chartered under either Federal or Florida law (but
not private loan funding of any nature); the position of the public funds guarantees may
be placed in a secondary position to the position of the bank/financial institution.
0) 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.
Notwithstanding the foregoing, if a recipient of a loan subsidy, who enters an agreement
to implement the subsidy after November 1 2010 December;2014, receives
financing from a commercial bank or other financial institution of a similar nature that is
chartered under either Federal or Florida law (but not private loan funding of any
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nature); the position of the public funds guarantees may be placed in a secondary
position to the position of the bank/financial institution.
(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.
(1) 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 the
Community Redevelopment Agency of the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area after seeking advice and counsel
from the City Attorney. Notwithstanding the foregoing, if a recipient of a loan subsidy,
who enters an agreement to implement the subsidy after November 1 2010 DeGernbe
1,2014, receives financing from a commercial bank or other financial institution of a
similar nature that is chartered under either Federal or Florida law (but not private loan
funding of any nature); the position of the public funds guarantees may be placed in a
secondary position to the position of the bank/financial institution.
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(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 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 article.
(n) 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 the Sanford Lake Monroe Waterfront and Downtown Sanford Community
Redevelopment Area shall be encouraged to apply and participate.
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/50 R8DOVatiOO projects thBtNill [8SUlt in filling vacant retail space shall be eODDU[@O8d
to apply and participate.
(6) Renovation projects that will iOCP2BS2property VB\UB/s\ shall be encouraged to apply
and participate.
/7\ Renovation projects that will iDCrBaBB employment opportunities within the Sanford
Lake Monroe Waterfront and Downtown Sanford Community Redevelopment Area shall
b8 encouraged fO apply and participate.
/8\ ReOOV@tiDO projects that work in f8VO[@b|e concert with Ofh8F major d8V2lOpOOBnfs
by providing BOh@OC8d activities for the Sanford Lake Monroe Waterfront and
Downtown Sanford Community Redevelopment Area shall be encouraged |oapply and
participate.
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 oto cost of
$150.000. A market rate loan in currently available at 6.5% amortized for 20 years. A 196. 20'year loan of
$150,000 will require o monthly loan payment of$OSO.00. That payment will support market rate loan at
6.5Y6 of $ 92.550. The City Cornrnundv Redevelopment Agency of the Sanford Lake Monroe Waterfront
and Uoxvnbmvn Sanford Community Redevelopment Area will provide o 096 deferred payment loan of $
57.450 into on escrow account. This loan will decline at the nybe of 1/120th 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 bann the agency would nacek/o the remaining
balance of the loan based upon the length of time the borrower has met the conditions for loan.
Section 3. Savings.
The prior actions Of the City of Sanford in terms Of the DOBtte[8 relating to the
implementation of the EODODOliO Development C000D02[Ci@l Loan Subsidy PrOg[BrD' as
well @Sany and all related matters, are hereby ratified and affirmed.
Section 4. Conflicts.
All ordinances or part of ordinances in conflict with this [][dinaOC8 are heP2h«
repealed.
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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 to be invalid, unlawful, or
unconstitutional.
Section 6. Codification.
(a). This Ordinance shall be codified, as determined to be appropriate by the
Code codifier.
(b). The sections, divisions, etc., and provisions of this Ordinance may be
renumbered or relettered as deemed appropriate by the Code codifier.
(c). Typographical errors and other matters of a similar nature that do not
affect the intent of this Ordinance, as determined by the City Clerk and City Attorney,
may be corrected with the endorsement of the City Manager, or designee, without the
need for a public hearing.
Section 7. Effective Date.
This Ordinance shall take effect immediately upon passage and adoption.
Passed and adopted this 22nd day of February, 2016.
City Commission of the City of
Sanford, Florida, Seminole County,
Florida.
Jeff Triplett,
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Attest.
C �
Cynth a Porter, City Clerk
Approved as to form and
Legality:
it iam L. Colbert, Esq
City Attorney
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