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HomeMy WebLinkAbout3.B. Adopt new criteria for the Dacade Imporvement Program as to create a enw Commercial Exterior Improvement Program Consent Business SHAKOPEE • TO: Economic Development Authority FROM: Samantha DiMaggio,Economic Development Coordinator DATE: 10/01/2013 SUBJECT: Adopt new criteria for the Facade Improvement Program as to create a new Commercial Exterior Improvement Program. Background At its September 24 meeting,the EDA discussed several proposed changes to the criteria for the Facade Improvement Program, including a name change to make it the Commercial Exterior Improvement Program. Based on the EDA's direction, staff has clarified the terms and criteria listed below. •50%of the project costs to be eligible as a deferred/forgivable loan by the city with a$15,000 maximum award. •Forgiveness of the loan would take place over a five year period(20%of the award is forgiven annually for each of 5(five)years after improvements are made). •If the benefiting building is sold within the 5(five)year period,the EDA may review the loan on a case by case basis to determine if any or all of the funds should be forgiven, if the funds should be paid back,and how much time will be allowed for repayment. •The applicant has one year to complete the project and request payment of funds if complete,after the initial one year time frame,the applicant may request an extension. •The applicant will be reimbursed for expenditures after providing the city with paid invoices. •Eligible expenses are limited to improvements which are visible from the exterior. Examples include roofs (flat or pitched),windows,doors, siding,brick,removal of blight from property,planting of trees,painting, lighting,awnings,signage,restoration of historic details,and any other items deemed appropriate by the EDA. •The applicant must provide a minimum of two quotes for the work to be done,to be included with the application. Modifications to the marketing materials, application and repayment agreements would be made to reflect these changes. At the instruction of the EDA, further discussions will take place to consider additional eligible funding for historic purposes in excess of the base maximum of$15,000. Action Sought If the EDA concurs,it should,by motion,approve these modifications to the current Facade Improvement Program, so as to create a new Commercial Exterior Improvement Program. Attachments: