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Res 201-95 12/5/1995RESOLUTION NO. ' - C-(. `T A RESOLUTION AUTHORIZING THE ADMINISTRATION OF A FACADE ENHANCEMENT PROGRAM AND ESTABLISHING PROGRAM GUIDELINES; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, the City Council recognizes the need to eliminate blighted conditions in the community, encourage economic development, and improve the tax base; and WHEREAS, the establishment and administration of a Facade Enhancement Program utilizing Community Development Block Grant (CDBG) funds will address these issues. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION I. That the program guidelines be adopted, and that the City's Landmark Commission is given the authority to make final decisions on the approval of program applications based on the program guidelines. SECTION 2. The Landmark Commission may make minor changes in the program with the approval of the Community Development Department and in accordance with CDBG regulations to assure program effectiveness. SECTION 3. It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 5th day of Decen ATTEST: CITY LER.IC CITY OF WICHITA FALLS FACADE ENHANCEMENT i FACADE ENHANCEMENT PROGRAM GUIDELINES ROGRAM OBJECTIVES The intent of this program is to promote the increased maintenance of buildings in downtown Wichita Falls by making City funds available to eligible building owners for quality exterior rehabilitation. The purpose of the program is to restore the exterior facade, eliminate slum and blight, and improve the mercantile appearance of the downtown area. II. ELIGIBILITY A. Structure Eligibility A structure's eligibility will be determined by the Community Development Department based upon the following requirements: 1. The structure must be located in the Facade Enhancement District. The boundary of the district extends from the railroad tracks to the east side of Indiana Street and from the north side of Tenth Street (location of the Activity Center) to the south side of Fifth Street. The west side of Indiana Street will also be included. Please refer to Appendix A and the attached map. 2. The structure must be in need of exterior renovation or improvements and indicated as "blighted" according to the City's survey documentation. 3. The structure must be free of judgments or liens, exclusive of the mortgage lien. 4. All taxes on the property must be current. B. Eligible Work Items The following are among the types of exterior improvements eligible for City funding: 1. Window /door renovation or appropriate replacement work. 2. Storefront rehabilitation, including removal of non - original siding. 3. Cleaning or painting of exterior surfaces. (NOTE: NO SANDBLASTING WILL BE ALLOWED.) 4. Restoration of architectural detailing. 5. Awnings (permanent fixtures only). 6. Signs (permanent fixtures only). 7. Roof improvements. 8. Architectural fees, up to 10% of the City fund allocated, for exterior facade renovation only. C. Applicant Eligibility Applicant eligibility must be determined. The applicant should be willing to substantiate his/her commitment to the project. Genuine interest to implement interior and exterior rehabilitation is essential. The applicant must meet the following guidelines established by the Community Development Department: 1. Funds provided by the City will not exceed the lesser of $50,000 or 1/3 of the total project cost. City funds shall only be used for improvements to the roof and the exterior facade of the building. The applicant/property owner must bear the entire cost of any interior and/or other improvements made to the building. For example, if interior improvements cost $150,000 and exterior facade improvements cost $30,000, the City will allocate $10,000 to the project. 2. The structure will be inspected by the Building Inspection Division of the Community Development Department. Building items that fail to meet building code standards established by the City of Wichita Falls will need to be upgraded and included in the proposed construction project. The Owner /applicant must be willing to invest private funds for interior, and/or any other structural improvements that fail to meet City building code standards. Some phasing will be permitted. 3. A building permit must be obtained before construction begins. 4. All construction contractors must be licensed and bonded. 5. City funding will not be provided for purely maintenance activities which are the owner's responsibility. b. The applicant must own the property. City funding may otherwise be authorized with conditional approval, contingent upon the applicant securing ownership prior to actually receiving City funds. All mortgages and liens must be identified. The applicant must furnish a copy of the properly recorded Warranty Deed, Warranty Deed with Mortgage Lien, or other sufficient evidence of title. 7. An applicant may apply for City funding for more than one property. 8. The applicant must pay all other fees, not included in eligible work items, attributable to the project such as preparation costs of interior renovation plans, exterior improvements, and other building improvements. Any contracting must be performed solely by the applicant/property owner. The City's contribution is purely financial. 9. The Owner must advertise for construction bids. Actual project costs must follow original cost estimates as closely (and proportionally) as possible. Davis -Bacon wage rates are required. 10. A builder's risk insurance policy must be obtained covering at least 80% of any replacement cost. The City must be listed as an additional insured. 11. Building insurance will also be required after the renovations are complete. Because the City is acquiring the facade easement for twenty (20) years, the Owner must obtain insurance coverage for the length of this term. If ownership changes within this twenty (20) year period, the new owner(s) will also be required to obtain this insurance. 12. After the project is completed (and the easement has been acquired by the City), any alterations, changes, or additions to the exterior facade of the building must be approved by the Landmark Commission. 13. The City reserves the right to deny any prgjgct proposal if any of the eligibility requirements are violated. III. INSPECTION ITEMS The Building Inspection Division of the Community Development Department will inspect the owner /applicant's structure and rate the condition of the following items: 1. Roof Structure. 2. Exterior Walls. 3. Foundation. 4. Windows, Doors. 5. Interior Floors. 6. Interior Walls. 7. Electrical. 8. Plumbing. 9. Exterior Lot. 10. Exterior Appurtenances. When the proposed construction project is completed, each of the above items must meet minimum building code standards established by the City of Wichita Falls. IV. FORMAL DOCUMENTS A. Facade Easement Document. The City obtains regulatory control over the exterior facade improvement(s) through the acquisition of an easement. The Facade Easement document is a legal instrument ensuring that the owner /applicant agrees to grant the City a facade easement. The physical parameters of the easement are also described in this document. B. Formal Contract allocating the use of City funds. City funds are allocated based upon the following conditions: 1. The Owner /applicant agrees to upgrade the building to meet the minimum standards of the City of Wichita Falls building code. 2. The exterior facade of the building will be improved and/or restored, thereby contributing to the elimination of slum and blight downtown. 3. The owner /applicant will grant the City a facade easement for a period of twenty (20) years. After the easement is purchased and the proposed renovations are complete, the City of Wichita Falls will continue its control of the easement for twenty (20) years, regardless of future changes in property ownership. complete the entire project. Payments are to be dispersed in the form of four (4) draws. Each draw will constitute 25% percent of the total City fund to be allocated to the owner /applicant - -not exceeding $50,000. The draws will be allocated based on completed items as certified by the project architect. The last draw will be dispersed in conjunction with a successful final review. Efforts to comply with City permit and building code requirements will also be verified by the City prior to the dispersal of each draw. Copies of payroll reports and other documentation must be submitted and reviewed to ensure that Davis -Bacon wage rates are being used. The owner /applicant must also be prepared to substantiate his/her usage of private funds. Actual project costs must follow original cost estimates as closely (and proportionally) as possible. V. PROPERTIES DESIGNATED UNDER THE NATIONAL REGISTER OF HISTORIC PLACES (NRHP) Properties in the Facade Enhancement District that are determined to be eligible or contributing to the NRHP will require plan review by the Texas Historical Commission. Applicants may be eligible to receive historic preservation tax credits. VI. PROGRAM OUTLINE The Facade Enhancement Program has the following steps: A. Preliminary discussion with the Community Development Department regarding eligibility requirements. B. Begin application procedures. The owner /applicant must submit to the Community Development Department the following materials: 1. Preliminary architectural plans of the proposed renovations and improvements. The applicant must select an architect registered by the State of Texas. 2. Preliminary cost estimates for proposed improvements including exterior facade improvements, interior renovation work, and any other building improvements needed to meet minimum City building code requirements. 3. Verification of property ownership via attorney opinion, title update, or title commitment. Deed records and title insurance should also be presented. 4. Preliminary proof of financing. The owner /applicant must submit a copy of his/her bank statement and/or letter of credit to establish owner's financial ability to undertake project. 5. Letter of commitment signed by the applicant/property owner indicating the following: a. Information about the type of interior renovation, exterior improvement, and any other building improvements. b. Information about current tenants and future potential tenants. Priority will be given to vacant untenantable buildings. City will check water, sewer, electric, and gas utilities to substantiate applicant claims. This priority is to prevent any displacement or relocation of tenants. Owner will be responsible for all displacement payments and costs under the Uniform Relocation Act. These payments can often be so costly as to make a project not financially feasible. C. Continuation of application procedures. The owner /applicant must submit the following materials to the Landmark Commission: 1. A preliminary architectural plan proposal. The applicant must select an architect registered by the State of Texas. The facade restoration must be done in a manner that respects the original building design and/or the surrounding character of the area according to Landmark Commission and/or Texas Historical Commission guidelines. 2. The Landmark Commission will also review the renovation plans and determine the building's compatibility with the architectural character of downtown Wichita Falls. The amount of the City fund awarded will also be determined by the Landmark Commission. 3. D. Continuation of application procedures. The City will conduct a HUD Environmental review of the project. If the project is eligible or contributing to the NRHP, the City will submit the project to the Texas Historical Commission for review, as required under federal funding in conformance with Section 106 Review Procedures. This process entails a thirty (30) day waiting period. E. Applicant receives letter indicating either approval or disapproval of project proposal. If the project is approved, the owner /applicant must perform the following: Obtain a building permit from the City of Wichita Falls. 2. Advertise for construction bids. Actual project costs must follow original cost estimates as closely (and proportionally) as possible. 3. Show evidence that any contractor from any trade is board licensed and bonded and that all bids are complete. The City must receive copies of all proposed construction contracts. 4. File a Certificate of Insurance with the Community Development Department from the beginning of construction until the end of the funding period. 5. Subcontractors must be identified. 6. A review of both the building budget and facade budget will also be conducted before any City funds are allocated. F. Execute formal documents which include: Facade Easement Document is signed and formalized. 2. Formal Contract allocating the use of City Funds is signed and formalized. Community Development Department at this time. Payments are to be dispersed in the form of four (4) draws. Each draw will constitute 25% percent of the total City fund to be allocated to the owner /applicant - -not exceeding $50,000. The draws will be allocated based on completed items as certified by the project architect. The last draw will be dispersed in conjunction with a successful final review. Efforts to comply with City permit and building code requirements will also be verified by the City prior to the dispersal of each draw. Copies of payroll reports and other documentation must be submitted and reviewed to ensure that Davis -Bacon wage rates are being used. The owner /applicant must also be prepared to substantiate his/her usage of private funds. Actual project costs must follow original cost estimates as closely (and proportionally) as possible. G. Complete construction project by final completion date. H. Final Review. After the final completion date has passed, the Community Development Department will perform a final review of the project to ensure its completion. The final review will include: 1. Physical inspection of the building to ensure that the applicant followed the guidelines and rules concerning the Facade Enhancement Program. 2. Building permit finals must be completed at this time - -cards must be received from the Building Inspection Division, Community Development Department. 3. Identify and submit any waivers of liens from subcontractors with project completion. 4. Appendix A-- Definition of Terms Blighted Land parcels and/or structures located in the Facade Enhancement District characterized by either: A. Vacancy or abandonment. B. Lack of maintenance and including structures that fail to meet building code standards established by the City of Wichita Falls. C. Structural deterioration. One quarter to one half of all the buildings in the Facade Enhancement District are in a state of deterioration. D. Deterioration of public or community services, whereby a majority of these services in the area clearly exhibit signs of deterioration of public services and fail to meet building code standards established by the City of Wichita Falls. E. Vacant land with debris, litter, trash, and junk accumulation. F. Lack of sanitary facilities, whereby private, on -site sanitary facilities are lacking and/or inadequate according to City of Wichita Falls building code. G. Adverse environmental nuisances, such as noise, heavy traffic, and odors. The land parcels and/or structures are adversely impacted by traffic conditions caused by defective or inadequate streets, street layout, or accessibility. H. Adversely affects the public health, safety, morals, or welfare of the municipality and its residents, substantially retards the provision of a sound and healthful housing environment, or results in an economic or social liability to the municipality. Exterior Facade All outside architectural and construction features visible from any point on the street, including but not limited to, structural materials, mason materials, signs, windows, doors, trims, seals, steps, railings, cornices, molding, paint colors, and other decorative features. Facade Enhancement District Refers to land parcels and/or structures in Downtown Wichita Falls located within the following boundary: Beginning at a point of intersection of westerly Right -of -Way (ROW) line of Indiana Street and the northerly ROW line of Fifth Street. Said point also being the most southeasterly comer of Lot 12, Block 127, Original Townsite; Thence in a northeasterly direction along the northerly ROW line of Fifth Street to a point in the easterly ROW line of Ohio Avenue; Thence in a southeasterly direction along the easterly ROW of Ohio Avenue. to a point in the northerly ROW line of Sixth Street; Thence in a northeasterly direction along the northerly ROW line of Sixth Street to a point in the westerly ROW line of the Burlington Northern Railroad; Thence in a southeasterly direction along the westerly ROW line of the Burlington Northern Railroad ROW and also along the westerly lines of Blocks 162, 177, and 181, Original Townsites, to a point in the southerly ROW line of Tenth Street; Thence in a southwesterly direction along the southerly ROW line of Tenth Street to a point in the easterly ROW line of the alley within Block 194, Original Townsite. Said alley ROW also lying between Scott Avenue and Indiana Avenue, and between Tenth Street and Eleventh Street; Thence in a northwesterly direction along the easterly alley ROW line, passing the easterly lines of Blocks 183 and 175, Original Townsites, to the most northwesterly corner of Lot 4, Block 175, Original Townsite; Thence in a northeasterly direction along the northerly lot line of Lot 4, Block 175, Original Townsite, to a point in the westerly ROW line of Indiana Avenue. Said point also being the most northeasterly corner of Lot 4, Block 175, Original Townsite; Thence in a northwesterly direction along the westerly ROW line of Indiana Street, passing the easterly lines of Blocks 175, 164, 151, and 140, Original Townsites, to a point in the northerly ROW line of Fifth Street. Said point also being the place of beginning. FACADE ENHANCEMENT DISTRICT i1M R. PlF4 1 6 0 s St. �I 7ii. a 7� F7� I :Pll tldf.T � rm !T. Mr iy ! owe am i Mir MD ~ AGTMm FACADE ENHANCEMENT DISTPJCT