Melbourne Downtown CRA Item 16: Building Improvement Grant Program Guidelines on November 10

The Melbourne City Council, acting as the Melbourne Downtown Community Redevelopment Agency (CRA), will consider revised guidelines for the downtown Building Improvement Grant Program on Tuesday, November 10, 2026, at 6:30 p.m. The program would offer a matching reimbursement grant of up to 50%, not to exceed $30,000, for interior work that brings commercial spaces into compliance with the Florida Building Code or the Florida Fire Prevention Code. Staff expects applications to open January 4, 2027. The item is not a public hearing and is not final until the CRA votes.

Where the Item Appears on the Agenda

The guidelines are item 16 on the City Council's November 10 agenda. The City Manager's item report lists it as item C.16 from the Community Development Department. Robert McKinzie, the city's Economic Development Manager, is the presenter.

How the Guidelines Got Here

The item report states that the CRA approved earlier Building Improvement Program Guidelines on August 11, 2026. That approval was subject to two revisions. The first was a change to the eligible business types. The second was to set different rules for the CRA South Expansion Area.

On October 8, 2026, the Melbourne Downtown CRA Advisory Committee unanimously recommended approval of the revised guidelines. The committee asked for one change to the language about contractors in the list of ineligible businesses.

On October 13, 2026, the CRA amended the Redevelopment Plan to include the Building Improvement Program as an eligible CRA program. The item report states that approval of the guidelines is the final step before staff can start the program.

What the Grant Would Cover

The guidelines describe a matching reimbursement grant. It pays back up to 50% of eligible costs, with a cap of $30,000. Applicants must put in at least $5,000 of their own money. That means the total eligible project cost must be $10,000 or more.

Eligible work must address Florida Building Code or Florida Fire Prevention Code requirements tied to a new business, a business expansion or business retention. The guidelines list these examples.

• Electrical, plumbing and HVAC work

• Sprinkler, fire suppression and fire separation systems

• ADA accessibility improvements

• Code required interior changes, such as life safety egress improvements

• Grease traps and related plumbing

• Commercial kitchen exhaust hoods, ventilation and related fire suppression equipment

• Building permit fees

Reimbursable costs are limited to labor, materials, building permit fees and related architectural or engineering services. The work must be done by a licensed contractor. Improvements must be permitted through the City of Melbourne, be fixed and permanent, and begin after grant approval and a signed agreement.

What the Grant Would Not Cover

The guidelines list several expenses that are not eligible. They include exterior work unless it is needed for ADA access, furniture, fixtures, equipment, inventory and removable items. Impact fees and code enforcement fines are not covered. Work started before the Rebate Agreement is signed, self performed work and new building construction are also not covered.

Which Businesses May Qualify

The revised guidelines split the CRA into a North Area and a South Area. In the North Area, eligible businesses are customer facing commercial uses, such as restaurants and retail shops, that bring foot traffic downtown. In the South Area, eligible uses include restaurants, retail shops, personal service businesses and professional offices.

Business types not eligible in either area include outdoor building, contractor and equipment storage, automotive businesses, warehousing, home based businesses, adult entertainment, liquor stores, gas stations, temporary or seasonal businesses, and any business the CRA finds inconsistent with the district's redevelopment goals. In the North Area, professional and administrative offices, medical and dental offices, and real estate, insurance and financial service offices are also not eligible.

Staff's memo states that, as Council directed, bars and smoke shops were removed from the ineligible list. Staff also added assisted living facilities and bed and breakfast establishments to the ineligible list. The memo states that these uses do not meet the intent of the program.

Who May Be Affected

The program may affect downtown business owners, tenants and commercial property owners in the Melbourne Downtown CRA district. Applicants may be a for profit business moving into or expanding within the district. A property owner may also apply to improve a space meant for an eligible business. Property owners applying without a tenant must show the work is needed to place a tenant.

The guidelines set other conditions. Applicants must be current on taxes, utilities and money owed to the city. They need an active city and county Business Tax Receipt, or must obtain one before reimbursement. They must have no pending code violations, unless the project will fix them. A new business must sign a lease of at least three years. Tenant applicants must submit a business plan reviewed by a small business service provider, such as the Small Business Development Center, SCORE or weVenture.

The guidelines also state that applicants who received CRA or city funding in the past five years are not eligible. Applicants cannot apply for the Façade Improvement Program at the same time. For multi tenant properties, only one grant may be awarded per tax parcel each fiscal year.

How the Process Would Work

Grants depend on available funding and would be reviewed first come, first served, on a case by case basis. The guidelines state that applying does not guarantee approval.

The steps include meetings with city staff. A complete application must include a business plan, a scope of work, photos of the space, proof of insurance, a timeline and three itemized contractor estimates. The Melbourne Main Street Economic Vitality Committee, the Melbourne Downtown Redevelopment Advisory Committee and the CRA would each review applications. The CRA makes the final decision.

If approved, the applicant and the CRA sign a Rebate Agreement. The applicant must keep the improvements for at least five years after reimbursement. The agreement may allow the city to lien the property for amounts due if the applicant defaults. Payment comes after a Certificate of Occupancy or Certificate of Completion, proof of payment and a final staff inspection.

The item report states that Fiscal Year 2027 funding comes from the Melbourne Downtown CRA Operating Budget. The packet does not state a total program amount.

What Happens Next

If the guidelines are approved, staff plans to market the program to businesses, property owners, brokers and small business groups. Staff is tentatively planning a workshop for prospective applicants in November. Staff expects the program to launch on January 4, 2027, when applications would begin to be accepted.

The guidelines direct application questions to the City of Melbourne Community Development Department, 900 East Strawbridge Avenue, 3rd Floor, Room 316, at 321-608-7500 or community.development@mlbfl.org.

The agenda advises under section 286.0105, Florida Statutes, that a person who appeals a Council decision will need a record of the proceedings. Persons with disabilities who need accommodation to take part should contact the City Clerk's Office at 321-608-7220 at least 48 hours before the meeting.

The Melbourne City Council, acting as the Melbourne Downtown CRA, meets Tuesday, November 10, 2026, at 6:30 p.m., at City Hall Council Chamber, 900 E. Strawbridge Avenue, Melbourne, FL 32901.