CITY MANAGER MEMORANDUM

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1 To: Through: From: CITY MANAGER MEMORANDUM The Honorable Mayor Kelley and City Commissioners Joyce A. Shanahan, City Manager Ric Goss, AICP, Planning Director Date: June 16, 2011 Subject: First Property Improvement Grant Program Extension Maria Bonita Building Improvements, 195 West Granada Boulevard Introduction: This is a request by Henry Galvis, Taxco LLC, for the first Property Improvement Grant amendment, to allow a 120 day extension to complete site and building improvements for a $50,000 Property Improvement Grant at 195 West Granada Boulevard. The request would modify the completion date from July 5, 2011 to November 2, Background: In September 2009, the property owner submitted a site plan application to redevelop the existing restaurant site located at 195 West Granada Boulevard. The project includes the front property where the building is located and vacant land at 9 North Yonge Street where the parking lot, landscaping, and stormwater improvements are proposed. The site has been several restaurants, including Kentucky Fried Chicken, Maria Bonita, and Grizzly s. The restaurant has been vacant for the last several years and the site has struggled with a lack of parking and inadequate access around the building. On February 16, 2010, the Maria Bonita project was granted a Special Exception Redevelopment Plan with Resolution that authorized a landscape buffer and signage waivers as part of redevelopment project for a façade redevelopment and expansion, as well as site improvements. The project sought to expand the seating capacity of the restaurant and to provide adequate off street parking, as well as other site improvements. The Site Plan Review Committee approved the proposed redevelopment project on November 5, On December 7, 2010, the City Commission approved Resolution that authorized a $50,000 grant for building and site improvements for the property at 195 West Granada Boulevard. The scope of the improvements for the project included: 1. There are three current driveways into the subject property. The project proposes to eliminate two driveway access points to Granada Boulevard. The remaining access point shall be an in only access point. 2. Removal of the existing non-conforming pole sign and replacement with conforming monument sign. 3. Elimination of the parking area around the building. This area of the lot shall be used for building expansion for the restaurant. [195 West Granada Boulevard, 1st Extension, CM Memo.doc]

2 The Honorable Mayor and City Commissioners June 16, 2011 Page 2 4. Architectural re-design of the existing building to the Spanish architectural style. Improvements include attributes, such as distinctive geometric parapet wall (used to screen mechanical equipment), decorative tile detailing, decorative awnings, barrel clay-tile roof, wrought iron railings, brick and stucco construction and four side architectural improvements. 5. Expansion of the existing building to include additional seating. The expansion is proposed in two phases. The property owner is commencing only with phase 1 at this time. 6. Pedestrian connection from the Granada Boulevard right-of-way to the restaurant entrance. 7. Landscaping and irrigation improvements. The project is under construction and has installed underground utilities, performed site improvements, and is in the process of constructing the building improvements. The property owner is requesting a 120 day extension to the approved grant. Budget Impact: The City Commission has approved $300,000 for Fiscal Year for the grant program in Fund 104, the Downtown Redevelopment Trust Fund. Approved Projects Award Amount Status West Granada (Buschman Bldg) $ 50, Under Construction 31 West Granada (On the Boulevard) $ 50, Under Construction 156 West Granada Boulevard $ 50, Permit obtained 50 New Britain Avenue $ 50, Under construction Project under 195 West Granada Boulevard consideration. Under $ 50, (Maria Bonita building) construction, expires July 5, Under construction, 9 North Yonge (Maria Bonita parking) $ 50, expires July 5, Applying is 1 st grant extension. TOTAL $ 300, Remaining Grant Funds for FY , if application is approved $ 0.00 The project is already committed for the current fiscal year and would have no additional impact on the existing grant funding. There are no pending grant applications submitted to the City. Recommendation: It is recommended the City Commission APPROVE a 120 day extension for a deadline for completion of November 2, 2011, to complete building and [195 West Granada Boulevard, 1st Extension, CM Memo.doc]

3 The Honorable Mayor and City Commissioners June 16, 2011 Page 3 site improvements for a $50,000 Property Improvement Grant at 195 West Granada Boulevard. Reviewed by: /s/ 06/16/2011 Theodore S. MacLeod, P.E. Date Assistant City Manager /s/ Kelly McGuire, Finance Director 06/16/2011 Date Approved by: /s/ 06/16/2011 Joyce A. Shanahan, City Manager Date Prepared by: Steven Spraker, AICP, Senior Planner [195 West Granada Boulevard, 1st Extension, CM Memo.doc]

4 RESOLUTION NO A RESOLUTION OF THE CITY COMMISSION, ALSO ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY, OF THE CITY OF ORMOND BEACH, FLORIDA, AUTHORIZING THE FIRST EXTENSION OF ONE HUNDRED AND TWENTY DAYS FOR THE PROPERTY IMPROVEMENT GRANT AGREEMENT BETWEEN THE AGENCY AND TAXCO LLC; AND SETTING FORTH AN EFFECTIVE DATE. WHEREAS, the City Commission approved Resolution No declaring the Central Business District ( District ), as described therein, to be a Community Redevelopment Area in accordance with section , Florida Statutes, and WHEREAS, Resolution further declared the City Commission to be the Community Redevelopment Agency ( Agency ) for the District, and WHEREAS, in accordance with section , Florida Statutes, the City Commission approved Ordinance No establishing a Redevelopment Trust Fund ( Trust Fund ) for the Agency in accordance with the said statutory provisions, and WHEREAS, by Resolution No. 87-4, the City Commission approved the Granada Boulevard Master Streetscape Plan ( Granada Plan ) as the official City policy and plan for the said area, and WHEREAS, by Resolution No , the City Commission approved the Bovard Avenue/Vining Court Master Streetscape Plan ( Bovard Plan ) as the official City policy and plan for the said area, and S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-1-

5 WHEREAS, together the said plans comprised the Community Redevelopment Plan ( Plan ) for the said area, and WHEREAS, the City Commission, also acting as the Agency, approved Resolution Nos , , , , and readopting and amending the Granada and Bovard Plans, and WHEREAS, the City Commission, also acting as the Agency, approved Resolution No , amending the Granada Plan to provide the establishment of a Property Improvement Grant Program ( Grant Program ) for the District, and WHEREAS, the City Commission, also acting as the Agency, approved Resolution establishing conditions for the implementation of the Property Improvement Grant Program for the District, and WHEREAS, the City Commission, also acting as the Agency, approved Resolution , adopting the updated master plan for the Ormond Beach Downtown Community Redevelopment Area (CRA), and WHEREAS, in accordance with the Property Improvement Grant Program, the Agency may, subject to its sole discretion, agree to reimburse property and/or business owners in the District on a one-to-one dollar match up to 50% of the actual cost, for eligible improvements to commercial establishments within the District, and S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-2-

6 WHEREAS, the real property located at 195 West Granada Boulevard (Volusia County Property Appraisers number ) ( Property ) is within the District, and WHEREAS, the City Commission, acting as the Community Redevelopment Agency approved by Resolution awarding a Property Improvement Grant on December 7, 2010 to TAXCO, LLC., a Florida limited liability company ( Applicant ) in the amount of $50,000.00, and authorized an additional ninety (90) calendar days from the date of approval to complete the scope of work for this project, and WHEREAS, the Property Improvement Grant program allows for extensions approved by the Agency, and WHEREAS, on May 25, 2011 Henry Galvis, President of TAXCO, LLC requested an additional one hundred and twenty (120) day extension of the Grant Agreement to extend the completion deadline from July 5, 2011 to November 2, 2011, and WHEREAS, the City s planning staff has determined the Applicant is eligible for, and has made a recommendation to approve the extension request submitted by the Applicant, and WHEREAS, the City s Finance Director and the City Manager have certified that the funds necessary for the payment of the grant request are available in Tax Increment Financing Construction Fund #307, and have not been appropriated for any other purpose, now therefore, S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-3-

7 BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, FLORIDA, ALSO ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY, FOR THE CENTRAL BUSINESS DISTRICT AND ADJACENT AREAS, THAT: SECTION ONE. The Mayor of the City of Ormond Beach/Chairman of the Agency and the City Manager are hereby authorized and directed to execute the attached Property Improvement Grant Agreement for the payment of the grant request between Henry Galvis, President of TAXCO, LLC, a Florida limited liability company under the terms and conditions set forth therein, and to pay the grant monies from the aforesaid funds. SECTION TWO. The First Amended Property Improvement Grant Agreement shall be recorded in the public records of Volusia County. APPROVED AND AUTHENTICATED, this 21st day of June, ATTEST: ED KELLEY Mayor, City of Ormond Beach and Chairman, Central Business District CRA LOIS TOWEY Acting City Clerk S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-4-

8 FIRST AMENDMENT TO THE CITY OF ORMOND BEACH PROPERTY IMPROVEMENT GRANT PROGRAM CENTRAL BUSINESS DISTRICT GRANT AGREEMENT This Agreement is hereby amended this 21st day of June 2011, by and between the City of Ormond Beach Community Redevelopment Agency, a Section , Fla. Stat., agency ("Grantor") and APPLICANT INFORMATION BUSINESS NAME: Proposed Maria Bonita PROPERTY ADDRESS: 195 West Granada Boulevard PARCEL ID NO.: PROPERTY OWNER ("Grantee"): TAXCO, LLC, a Florida limited liability company GRANT AWARD: $50, BUSINESS PHONE: WITNESSETH: In consideration of the mutual promises of the parties hereto, the parties hereby attest and agree as follows: SECTION 1 - OVERVIEW The Grantor has established a grant program to rehabilitate blighted commercial areas which program allows exterior improvement projects within the Central Business District to receive one-to-one dollar match from the Tax Increment Financing District. The maximum S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:19-1 of 10-

9 eligible amount for each project is fifty percent (50%) of the total eligible costs. The matching grants are awarded by the Grantor to applicants (property owners or tenants with the consent of the property owner) on the basis of the greatest benefit to the redevelopment area as measured by the adopted Property Improvement Grant Program Guidelines. Grants are limited to the available funds appropriated by the Community Redevelopment Agency. Grant applications are reviewed individually upon an evaluation criteria. The Grantor will make the final decision on the award of Grant Funds. SECTION 2 GRANT FUND AVAILABILITY At the beginning of each fiscal year, the Grantor shall allocate a portion of the Tax Increment Financing fund for the Property Improvement Grant Program. The Grantor shall approve the grant request as submitted, approve the grant request with conditions, approve a portion of the grant request, or deny funding based on the criteria established Section 5 of the guideline packet. Any applicant aggrieved by the decision of the Grantor may appeal per Section 1-19 of the City s Land Development Code. Grant requests/applications shall be reviewed and approved on a first come basis with the funds appropriated on October 1 st of each year. Projects that meet the criteria of Section 5 of the guideline packet and are approved by the Grantor shall be vested on a first come basis. There shall be no applications accepted once the vested projects approval amount equals the amount budgeted for that fiscal year. Any funds appropriated for a fiscal year that are not vested through approval, may be carried over in the Property Improvement S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-2 of 10-

10 Grant Program fund or placed back in the Tax Increment Financing Fund, at the discretion of the Grantor. SECTION 3 CRITERIA In reviewing grant applications, the Grantor shall consider the following criteria: 1) The subject property for the grant application must be within the Central Business District and used for non-residential or multi-family uses. 2) The following are eligible expenditures: a. Exterior Renovation: including, but not limited to: painting, stucco, architectural details, repair or replacing windows, door trims, porches, storefronts, façade renovations, and expansion of existing buildings. b. Site Signage: including the removal of old site signs and obsolete sign poles or fixtures. Site signage shall be defined as monument and pole signs, where permitted. c. Landscaping: including, but not limited to: removal of plant materials, replacement and addition of plant materials, new window boxes, and irrigation systems. d. Awnings: including the removal of old awnings and the purchase and installation of new awnings. e. Screening: including the screening of trash receptacles, air conditioning, utility equipment, or other objects with landscape or fencing materials that compliments the building and is consistent with the Land Development Code. f. Parking Areas: including the creation or improvement of off-street private parking facilities that provide a safe and pleasant environment for customers and employees. 3) The following are ineligible expenditures: a. Improvements made prior to Grant approval. S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-3 of 10-

11 b. Work performed that is not consistent with the approval of the City Commission. c. Interior Renovations. d. Deferred Maintenance. e. Sweat Equity payments (payment for the applicant s own labor and performance for renovation or new construction work) f. Permit Fees. g. Design Assistance (the cost for preparing site plan or building permit drawings for the necessary approvals for the project). h. Wall Signage (any signage that is affixed to any building). 4) Grant applicants are responsible for obtaining detailed project bids from two (2) licensed contractors showing a summary of the scope of work to be performed. The applicant must obtain all required permits, comply with all local, state and federal codes, and must demonstrate the right to access and/or use of the property. For projects under $3,000, two (2) bids are encouraged, but one bid is acceptable. SECTION 4 APPLICATION PROCESS Pre-Application: All projects that seek to obtain matching grant funding are required to have a pre-application meeting with City Planning staff. The grant process and the remaining funds available shall be reviewed at this meeting. Application: 1) All grant applications shall be submitted to the City Planning Department, Room 104, 22 South Beach Street, Ormond Beach, FL S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-4 of 10-

12 2) All grant applications determined by Planning staff to be complete and eligible will be submitted to the Grantor with forty-five (45) calendar days of such determination. 3) Applications will be accepted based on the availability of funds. 4) Completed applications shall include: a. A Property Improvement Grant Program application. b. A summary of the scope of work to be performed. c. Color photographs that show the existing conditions of the building, site, or current signage. d. Site plan, sign rendering, or sketch detailing the scope of work that the grant shall fund. e. Samples of sign or building colors to be used. f. Detailed worksheet itemizing the project costs. g. Acknowledgement of Grant conditions (see Application, Section 4). 5) The Planning Department shall review the submitted grant application to determine the completeness of the application. The Planning Department shall notify applicants in writing within ten business days if the grant application is incomplete. The Planning Department shall also review all applications to determine if they meet the criteria for approval and are in compliance with the Land Development Code. For each complete and eligible grant application the Planning Department shall provide a written summary and recommendation to the Grantor. Planning staff shall schedule completed applications for review by the Grantor at the next available City Commission meeting. S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-5 of 10-

13 SECTION 5 PROJECT REQUIREMENTS The project is required to obtain a building permit and must comply with the City s Land Development Code, Florida Building Code, and any applicable County, State or Federal regulations. The expiration date of this project Agreement is hereby extended an additional one hundred and twenty (120) days, from July 5, 2011 to November 2, If the project is not completed on or before November 2, 2011 or an extension thereof has not been granted, then the project shall not be eligible for grant reimbursement. Grantor reserves the right to deny reimbursement payment should the final inspection reveal that the work performed was not completed in a professional and workman-like manner and/or was not completed in conformity with the approved plans, design drawings and specifications and/or the terms of this Agreement. Grantor shall notify Grantees of aforementioned poor workmanship or failure to conform to approved plans, design drawings and specifications and/or the terms of this Agreement. Such notice shall be in writing by certified mail to the address listed above. SECTION 6 PLANNING DEPARTMENT INTERIM REVIEW(S) The Planning Department shall periodically review the progress of the approved contractor's work of the approved project. Such inspections shall not replace any required permit inspection by the Building Department. The Planning Department shall notify Grantees in writing by certified mail of any and all work which is not in conformance with the approved plans, design drawings and specifications. Such deficiencies shall be immediately remedied by the Grantees. At the discretion S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-6 of 10-

14 of Grantor, failure to cure deficient or improper work may result in Grantor s denial of reimbursement payment. SECTION 7 COMPLETION The Grantees shall incur all initial project costs and may receive reimbursement only after all improvements have been completed in accordance with the Grant Agreement. The project shall be deemed complete only after final inspection and approval by the Planning Department and/or Building Department and after the Grantees tender the following to the Grantor: a) a properly executed and notarized contractor statement showing the full cost of the work as well as each separate component amount due to the contractor and each and every subcontractor involved in furnishing labor, materials or equipment in the work b) proof of payment of the contract cost pursuant to the contractor's statement c) proof that all required local, state and federal permits were secured d) proof that all work passed the requisite inspections e) final lien waivers from all contractors and subcontractors If all work is determined by Grantor to be performed in a professional and workman-like manner and is determined to be completed in conformity with the approved plans, design drawings and specifications and/or the terms of this Agreement, the Grantor shall, within thirty (30) days of receipt of items a) through e) outlined above, issue a check to the Grantees in the amount specified in the Applicant Information on Page 1 hereof. S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-7 of 10-

15 SECTION 8 ALTERATIONS The Grantees agrees not to alter, modify or remove the improvements made in accordance with the Agreement for a period of three (3) years without the written permission of the Grantor. SECTION 9 MAINTENANCE The Grantees agree to maintain the improvements, including landscape materials made in accordance with this Agreement for a period of three (3) years. If within the three (3) year maintenance period improvement materials are damaged by automobiles, wildlife, acts of nature, or any other cause or such materials are stolen, it is expected that they will be replaced at Grantees sole expense. SECTION 10 RELEASE AND INDEMNIFICATION The Grantees release the Grantor from, and agrees that the Grantor shall not be liable for, and agrees to indemnify and hold harmless the Grantor and its officials, officers, employees and agents from and against, any and all losses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from or in any way connected with directly or indirectly with the Property Improvement Grant Program. The Grantees further agrees to pay for or reimburse the Grantor and its officials, officers, employees and agents for any and all costs, reasonable attorneys' fees, liabilities or expenses incurred in connection with investigating, defending against or otherwise in connection with any such losses, claims, damages, liabilities, or causes of action including those incurred on appeal. The Grantor shall have the right to S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-8 of 10-

16 select legal counsel and to approve any settlement in connection with such losses, claims, damages, liabilities, or causes of action. SECTION 11 OTHER WORK Nothing herein is intended to limit, restrict or prohibit the Grantees from undertaking any other work in or about the subject premises which is unrelated to the Property Improvement Grant provided for in this Agreement. WITNESSES: CITY OF ORMOND BEACH, a Florida municipal corporation acting as the CITY OF ORMOND BEACH COMMUNITY REDEVELOPMENT AGENCY Print Name: Print Name: STATE OF FLORIDA ) )ss COUNTY OF VOLUSIA ) BY: ED KELLEY Mayor, City of Ormond Beach and Chairman, Central Business District CRA ATTEST: JOYCE A. SHANAHAN City Manager The foregoing instrument was acknowledged before me this day of June 2011, by ED KELLEY and JOYCE A. SHANAHAN, as the Mayor, of the City of Ormond Beach and Chairman, of the Central Business District CRA and the City Manager of the City of Ormond Beach, a Florida municipal corporation, respectively and in their official capacity. They are personally known to me. NOTARY PUBLIC Notary Seal S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-9 of 10-

17 WITNESSES: TAXCO, LLC, a Florida limited liability company Print Name: HENRY GALVIS President STATE OF FLORIDA ) )ss COUNTY OF VOLUSIA ) The foregoing instrument was acknowledged before me this day of June 2011, by HENRY GALVIS, as President of TAXCO, LLC, a Florida limited liability company in his official capacity. He is personally known to me or has produced as identification. NOTARY PUBLIC Notary Seal S:\CITY COMMISSION ITEMS\RESOLUTION\2011\ W-INS RESO & EXHBTS\11-096A - PIGP W GRANADA BLVD MARIA BONITA PROPERTY IMPROV TAXCO 1ST AMENDMENT P G.DOC\6/16/ :37:18-10 of 10-

18 May 25, 2011 ~r. Steven Spraker City of Ormond Beach, Planing Department SUBJECT: City of Ormo~d Beach Property Improvement Program Central Business District Grant Agreement Dear Hr Spraker: In consideration of the agreement on December 7 of the 2010 between the City of Ormond Beach Community Redevelopment Agency and Henry Galvis President of Taxco LLC, Business Maria Bonita, Property Address: 195 West Granada Boulevard. Parcel ID No: , I am requesting a or.e Hundred and tenty days ( 120 ) extension to complete this project. The reason for the delay in our project is because the time between the approval of the Grant and obtain building permit and loan approval from Suntrus~ Bank slow down the beginning of the construction I thank you in advance for your Kind cooperation Sincerely, Henry Galvis President of Taxeo LLC

19 195 West Granada Blvd.

20 EXISTING CONDITIONS

21 Proposed Improvements 1. Remove pole sign, install monument sign. 2. Remove two driveway access points. 3. New façade, expand restaurant. 4. Site landscaping. 5. Underground on-site utilities.

22

23 Building under construction May 20, 2011

24

25

26 ...\Maria_Bonita\cad\X_elev.DGN Sep. 03, :22:21

27 ...\Maria_Bonita\cad\X_elev.DGN Sep. 03, :22:34

28 ...\Maria_Bonita\cad\X_plan.DGN Sep. 03, :21:37

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