TO: CRA Board of Commissioners
FROM: Rachelle Eloizin, Community Liaison
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: November 16, 2023
Title
SITE DEVELOPMENT ASSISTANCE FUNDING - BLANC BEAUTY SALON HAIR AND NAIL INC. (26 NW 6TH AVENUE) FOR AN AMOUNT NOT TO EXCEED $32,141.
Body
Recommended Action:
Recommendation
Approve a Site Development Assistance Funding Agreement with Blanc Beauty Salon Hair and Nail Inc. for the proposed improvement project located at 26 NW 6th Avenue, CRA sub-area #3, for an amount not to exceed $32,141.
Body
Background:
Blanc Beauty Salon Hair and Nail Inc. submitted a request for Site Development Assistance Funding to assist with the commercial project improvements at 26 NW 6th Avenue, within CRA sub-area #3, for an amount not to exceed $32,141.
Blanc Beauty Salon Hair and Nail Inc. was formed over 30 years ago by Co-Owners, Norcibien Monhomme and Chantal Reinfort-Monhomme. They have secured a multi-year lease with Hatcher Construction and Development and have plans to update and retrofit the 900 square foot space for their hair and nail salon. Permits for this project are pending approval and the work will be completed by Hatcher Construction and Development.
Site Development Assistance Funding is requested to assist with the cost of improvements including interior framing, electrical, plumbing, related permitting, etc. If approved, it is anticipated that the project will be completed by January 2024.
All estimated eligible expenses are listed in the attached Funding Detail Sheet and are in alignment with the Site Development Assistance Program (Funding Program) guidelines. See below.
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TABLE 1 |
AMOUNT |
|
Estimated total capital investment |
$ 42,855 |
|
|
|
|
Estimated eligible expenses |
$ 42,855 |
|
|
|
|
Recommended funding assistance (up to) |
$ 32,141 |
If approved, funding would be disbursed accordingly:
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TABLE 2AMOUNT |
|
|
Maximum Progress Payment (75% of award) |
$ 24,105.94 |
|
Withheld Payment (25% of award) |
$ 8,035.31 |
|
|
|
|
Total Maximum Award |
$ 32,141 |
As stated in the Funding Program guidelines, no more than 75% of the approved award may be disbursed prior to the receipt of a Temporary Certificate of Occupancy, Certificate of Occupancy, or receipt of all necessary and satisfactory inspection notices. Additionally, the remaining 25% of funding withheld will not be released until CRA staff verifies that there are no active liens or code enforcement violations on the property, and that the improvements have been sufficiently completed to the satisfaction of the terms of the approved award. Funds may be disbursed to the applicant by reimbursement or may be paid directly to contractors/vendors for eligible and pre-approved expenses.
Section 163.340(9), Florida Statutes, provides that “[c]ommunity redevelopment” or “redevelopment” means undertakings, activities, or projects of a county, municipality, or community redevelopment agency in a community redevelopment area for the elimination and prevention of the development or spread of slums and blight, or for the reduction or prevention of crime, or for the provision of affordable housing, whether for rent or for sale, to residents of low or moderate income, including the elderly, and may include slum clearance and redevelopment in a community redevelopment area or rehabilitation and revitalization of coastal resort and tourist areas that are deteriorating and economically distressed, or rehabilitation or conservation in a community redevelopment area, or any combination or part thereof, in accordance with a community redevelopment plan and may include the preparation of such a plan.
Additionally, section 163.370(2)(c)(5), Florida Statutes, provides that the CRA shall have all the powers necessary or convenient to carry out and effectuate community redevelopment and related activities within the community redevelopment area, which may include carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the community redevelopment plan.
Moreover, the Delray Beach CRA Community Redevelopment Plan (“Redevelopment Plan”), Part Four, Section II(c)(#3.2), p. 95, states that the CRA will allocate funds annually to provide limited financial assistance for privately funded projects through the Site Development Assistance Program which acts as an incentive for site development improvement within the CRA District, including exterior building upgrades and building expansions.
Accordingly, a Site Development Assistance award to Blanc Beauty Salon Hair and Nail Inc. will help further advance the CRA’s mission by eliminating slum and blight and supporting a commercial improvement project that will result in the activation of a new commercial space in the West Settlers Neighborhood; enhancement of the non-residential tax base of the CRA District; and increase in business and pedestrian activity in a priority area of the CRA District, sub area #3.
The CRA Staff recommends conditional approval of the Site Development funding agreement in an amount no greater than $32,141 by the CRA Board. This agreement will be executed once all permits have been approved by the City of Delray Beach Building Department.
Attachments: Exhibit A - Location Map; Exhibit B - Photos of Existing Conditions; Exhibit C - Funding Assistance Detail Sheet; Exhibit D - Application Form; Exhibit E - Business Plan & Financial Projections; Exhibit F - Site Development Assistance Program Guidelines
CRA Attorney Review:
N/A
Funding Source/Financial Impact:
Funding has been allocated from CRA Grant Program GL #7313.
Overall need within the Community Redevelopment Area:
Removal of Slum and Blight
Downtown Housing
Land Use
Infrastructure
Economic Development
Recreation and Cultural Facilities
Affordable Housing