HomeMy WebLinkAbout7. Downtown Facade Improvement Program
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Cityof Shakopee
Memorandum
TO: Economic Development Authority
FROM: Kris Wilson, Assistant to the City Administrator
SUBJECT: Downtown Fayade Improvement Program
DATE: 'October 25, 2005
The 2005 EDA budget includes $50,000 for a Downtown Fayade Improvement Program.
Input on the appropriate terms for the program was sought from the Economic
Development Advisory Committee, the Historic Preservation Advisory Commission and
the ShakopeeDowntown Partnership.
Based on the input received from these groups, it is suggested that the program be
structured as follows:
1. A deferred loan program where the loan would be forgiven on a sliding scale over
a five-year period if the property owner does not sell the property during that
time.
2. The maximum loan amount would be 50 percent of the cost of the improvement,
up to a maximum of $25,000 per property. While this might result in only two
loans being made, all three groups consulted felt it was better to get the money out
there and have a visible impact on just a few buildings, rather than spreading it
too thin or setting the maximum so low that it fails to provide the desired
incentive.
3. Initially, eligible properties would be those located within the boundaries of the
city's Commercial Historic Downtown, as identified in the City of Shako pee
Downtown Design Guidelines. If, by September 1,2006, the EDA has not
received enough qualified applications from property owners in the above
geographic area to expend the allocated funds, commercial properties along the 1 st
Ave. corridor would become eligible to apply.
4. Preference would be given to those properties thatdid not receive assistance
through Shakopee's Small Cities Development Program (SCDP) grant.
5. In order to be eligible, the improvement would have to be to a street-facing fayade
and would have to be a restoration or enhancement project; not regular
maintenance. Improvements would be required to follow the guidelines contained
in the City of Shakopee Downtown Design <:Juidelines.
6. Applications would be reviewed by a committee composed of one member from
each of the following groups: the Economic Development Advisory Commission,
the Historic Preservation Advisory Commission, and the Board of the Shakopee
Downtown Partnership. The committee's recommendations would be forwarded
to the Shakopee Economic Development Authority for final action.
Budget Impact:
The 2005 EDA budget includes $50,000 to fund this program.
Recommendation:
Staff recommends that Council approve the Downtown Fayade Improvement Program
with the terms outlined above and authorize staff to begin marketing the program to
eligible property owners and occupants.
~ AAlk~
-.s Wilson
Assistant to the City Administrator