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Home My WebLink About3.a. Approval of Minutes Consent Business 3, a. S11AK0PE TO: Economic Development Authority FROM: Julie Linnihan,Finance Director/City Clerk DATE: 10/15/2013 SUBJECT: Approval of Minutes Action Sought Move to approve the EDA minutes from September 17,2013 and October 1,2013. Attachments: 09-17-13 EDA Minutes 10-01-13 EDA Minutes OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Special Session September 17, 2013 Members Present: President Jay Whiting, Commissioners Matt Lehman, Steve Clay, Pat Heitzman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Engineer/Public Works Director; Samantha DiMaggio, Economic Development Coordinator; Julie A. Linnihan, Finance Director/City Clerk; Jim Thomson, City Attorney. 1. Roll Call President Whiting called the meeting to order and roll was noted as above. 2. Approval of the Agenda Clay/Lehman moved to approve the agenda. Motion carried 5-0. 3. Consent Business A. Approval of the EDA minutes from September 3, 2013. B. Approve bills in the amount of$514.59 for the EDA Fund. Lehman/Heitzman moved to approve the Consent Agenda as presented. Motion carried 5-0. 4. General Business 4.A Consideration of Modifications to the Facade Improvement Deferred Loan Program Ms. DiMaggio said the current Facade Improvement Deferred Loan Program has been underutilized in recent years. At the August 14, 2013 the EDAC invited local businesses to come discuss this program and suggest modifications to make it more attractive. The current program named the Facade Improvement Program requires the following: • 40% of the costs of restoration or enhancement projects are covered for up to a maximum of$15,000 • The loans are forgiven on a sliding-scale over a 5 year period if the property owner does not sell the property during that time. The EDAC is recommending to the EDA the following: •New Name—Commercial Exterior Improvement Program J Official Proceedings of the September 17, 2013 Economic Development Authority Page 2 50% of the project costs to be eligible as a forgivable loan by the city. - Forgiveness of the loan would take place over a three year period(year one 1/3, year two another 1/3, year 3 another 1/3). For example, with a$15,000 maximum match, $5,000 would be forgiven each year for 3 years. - If the funds are going to improve a vacant building,there must be a tenant in the building within 6 months of issuance of the certificate of occupancy. If that doesn't happen,the EDA can review the loan on a case by case basis to determine if any funds should be forgiven, if any or the funds should be paid back, and how much time will be allowed for repayment. - The benefiting building may be sold without an impact on the loan, as long as there is a building tenant. If the building is sold and no tenant remains or is found within 6 months,the EDA may then review the loan on a case by case basis to determine whether 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. - Eligible expenses are limited to improvements which are visible from the street(s). Examples include roofs (flat or pitched), windows, doors, siding, brick, removal of blight from property,planting of trees, painting, lighting, awnings, restoration of historic details, etc. Modifications to the marketing materials, application and repayment agreements would be made to reflect these changes. After a long discussion,the consensus of the commission was as follows: • Agreement on the name change • 50%matching grant • Check state law regarding five-year requirement • EDA is okay with the buyer appealing on a case-by-case basis as to whether the remaining loan balance should be forgiven. • Continue with the maximum amount of$15,000. The Historic Preservation Advisory Commission(HPAC) or EDAC will need to consider whether additional monies should be granted if activity includes historic preservation. • EDA was in agreement with what was covered as proposed. Instead of "etc."use"other items as approved by the EDA". • One year to complete project approved as was a requirement to receive two or more quotes or proposals The EDA also requested Ms. DiMaggio to bring back the suggested items were implemented into a document. 4.B Consideration of a Facade Improvement Program Deferred Loan for Turtles Bar and Grill, 132 1"Ave. E. Ms. DiMaggio said that Turtles Bar and Grill, 132 1st Avenue East, Shakopee,has requested assistance in the form of a deferred loan from the City's Facade Improvement Program. If the application is approved,the following work will be done to the exterior of the building: Official Proceedings of the September 17, 2013 Economic Development Authority Page 3 •New Door • Paint • Brick Repair • Powerwashing of the building The total estimated costs for the program are $5,643.31. Under the existing program, 40% of the costs would be covered ($2,257.32). If changed to 50%, it would be $2,821.66. The Facade Loan Committee (EDAC member, Historic Preservation Advisory Committee member and City Staff) met on Tuesday, September 10th and recommended that this loan be approved. Lehman/Heitzman moved to table until the revised Facade Loan Improvement was updated with the changes agreed upon by the EDA. Motion carried 5-0. 4.0 Consideration of a Facade Improvement Program Deferred Loan for Valley Sports, 102 1St Ave. W. Valley Sports, 102 West 1 st Avenue, Shakopee, has requested assistance in the form of a deferred loan from the City's Facade Improvement Program. If the application is approved, the following work will be done to the exterior of the building: • Paint • Block Repair • Powerwashing of the building • Awning Replacement The total estimated costs for the program are $6,675. The current City Program covers 40% of the total cost, therefore Valley Sports would be eligible for $2,670 in the form of a deferred loan. If participation is modified to 50%, the loan amount would be $3,337.50. The Facade Loan Committee (EDAC member, Historic Preservation Advisory Committee member and City Staff) met on Tuesday, September 10th and recommended that this loan be approved. Lehman/Heitzman moved to table until the revised Facade Loan Improvement was updated with the changes agreed upon by the EDA. Motion carried 5-0. 5. Adiourn Clay/Lehman moved to adjourn to Tuesday, October 1, 2013 at 7:00 p.m. Motion carried 5-0. 1 Julie A. Linnihan Finance Director/City Clerk Official Proceedings of the September 17, 2013 Economic Development Authority Page 4 Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Regular Session October 1, 2013 Members Present: President Jay Whiting, Commissioners Matt Lehman, Steve Clay, Pat Heitzman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Engineer/Public Works Director; Samantha DiMaggio, Economic Development Coordinator; Julie A. Linnihan, Finance Director/City Clerk; Jim Thomson, City Attorney. 1. Roll Call President Whiting called the meeting to order and roll was noted as above. 2. Approval of the Agenda Clay/Tabke moved to approve the agenda. Motion carried 5-0. 3. Consent Business 1. Approve bills in the amount of$5,027.91 from the EDA Fund. 2. Adopt new criteria for the FaVade Improvement Programs as to create a new Commercial Exterior Improvement Program. Clay/Heitzman moved to approve the Consent Agenda as presented. Motion carried 5-0. 4. General Business 4.A Deleted from agenda 4.13 Consideration of a Commercial Exterior Improvement Program Loan for Valley Sports, 102 West 1st Avenue, Shakopee. Samantha DiMaggio, Economic Development Coordinator said that Valley Sports, 102 West 1 st Avenue, Shakopee,has requested assistance in the form of a deferred loan from the City's Facade Improvement Program. If the application is approved, the following work will be done to the exterior of the building: • Paint • Block Repair • Powerwashing of the building • Awning Replacement The total estimated costs are $6,675. The program covers 50% of the total costs; therefore, Valley Sports would be eligible for$3,337.50 in the form of a deferred/forgivable loan. Official Proceedings of the October 1, 2013 Economic Development Authority Page 2 The Commercial Exterior Improvement Committee (comprised of representatives from the EDAC, Historic Preservation Advisory Committee, Chamber of Commerce and City Staffs)met on Tuesday, September 10th and recommended that this loan be approved. Tabke/Clay moved to approve a Commercial Exterior Improvement Loan in the amount of$3,337.50 and authorize the appropriate officials to enter into Repayment Agreement with Valley Sports. Motion carried 5-0. 5. Adiourn Lehman/Heitzman moved to adjourn to Tuesday, October 15, 2013 at 7:00 p.m. Motion carried 5-0. )ul!e A. Linnihan Finance Director/City Clerk Kim Weckman Recording Secretary