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Home My WebLink About4.A. Request for Reimbursement of Facade Improvement loan Eagles's Clubpwtm SHAW PEE TO: FROM: DATE: SUBJECT: Consent Business Economic Development Authority Julie Linnihan, Finance Director /City Clerk 04/15/2014 EDA Bill List 3. B. Background Attached is a listing of bills for the EDA for the period 4/2/2014 to 4/15/2014. Payments are for general office supplies and services, as well as professional services to Kennedy & Graven, and the Contract for Development payment to Rosemount. Action Sought Move to approve bills in the amount of $351,253.83 for the EDA Fund. Attachments: EDA Monthly Report EDA Check Register R5509FIN1 LOGIS003 CITY OF SHAKOPEE 4/11/2014 8:47:36 By Co (pb), Div (Totals Only) Monthly Financial Report Page - 1 2014 2014 4/30/2014 2014 <_____________________ 2013 Annual Current YTD Budget Per Cent Prior Year Same Period Prior Per Cent Description Budget Period Actual Balance Used Budget Year YTD Actual Used 02190 ECONOMIC DEVELOPMENT AUTHORITY 19 EDA 366,420.00 366,417.02 395,757.90 29,337.90- 108.01 283,975.00 26,436.63 9.31 02190 ECONOMIC DEVELOPMENT AUTHORITY 366,420.00 366,417.02 395,757.90 29,337.90- 108.01 283,975.00 26,436.63 9.31 EDA Council Check Register Period: Wednesday, March 19, 2014 to Tuesday, April 15, 2014 Check # GL Date Amount Vend # Description Acct # Obj Project 122114 3/27/2014 1.76 122104 INTEGRA TELECOM 2191.6334 TELEPHONE Check Total 1.76 122157 4/1/2014 10,083.75 124316 HOISINGTON KOEGLER GROUP, INC 2191.6327 OTHER PROF SERVICES Check Total 10,083.75 122201 4/3/2014 44.65 100097 AT&T 2191.6334 TELEPHONE Check Total 44.65 122246 4/15/2014 33.04 123780 DIMAGGIO, SAMANTHA 2191.6475 TRAVEL /SUBSISTENCE Check Total 33.04 122262 4/15/2014 300.00 101897 INTERNATIONAL ECONOMIC DEVELOP 2191.6472 CONFERENCE /SCHOOL/TRAINING Check Total 300.00 122265 4/15/2014 441.25 100433 KENNEDY & GRAVEN CHRTD 2191.6310 ATTORNEY 122265 4/15/2014 70.50 100433 KENNEDY & GRAVEN CHRTD 2191.6310 ATTORNEY 13 -001 ADC SITE- EMERSON 122265 4/15/2014 376.00 100433 KENNEDY & GRAVEN CHRTD 2191.6310 ATTORNEY SHUTTERFLY Check Total 887.75 122295 4/15/2014 350,000.00 124050 ROSEMOUNT 2191.6640 DESIGNATED MISCELLANEOUS Check Total 350,000.00 361 350.95 1 1 GRAND TOTAL WtA TO: Economic Development Authority FROM: Mark Noble, Senior Planner DATE: 04/15/2014 General Business 4. A. SUBJECT: Request for Reimbursement of Facade Improvement Loan for Eagle's Club Action Sought Offer and pass a motion directing staff to reimburse the Eagle's Club, 220 2nd Avenue West, an amount of $2,040.00, consistent with the loan agreement for this facade improvement. Introduction On January 22, 2013, the Economic Development Authority (EDA) approved a fagade improvement loan request by the Eagle's Club for renovation of their building, located at 220 2nd Avenue West. Since that approval, the applicant has completed several of the proposed improvements and they are requesting partial reimbursement for the improvements to the Eagle's Club building, consistent with the Repayment Agreement for the Shakopee Downtown Facade Improvement Program. Discussion The improvements approved by the EDA as part of this project included new stone and stucco work on the front fagade, new siding on the east addition, a new awning, and new windows and a doorway. The applicant had stated that these improvements would total $17,693.00, with the amount of the loan approved by the EDA not to exceed $7,077.20. The applicant has submitted invoices for the stucco work and the awning work. The invoice for the awning came in $1,593 less than what had been estimated; whereas the invoice for the stucco work came in $335.00 over the estimate. Additionally, the applicant has shared that the proposed window and doorway work, originally estimated at $3,000.00, was actually completed for significantly less, but have not submitted an invoice for that work nor for the new siding on the east addition which has also been completed. All that is left to complete the project is to apply the cultured stone to the front facade, which was originally estimated to cost $6,500.00. The agreement the EDA had with the Eagle's Club for this work was to reimburse at 40% of the total project cost estimate ($7,077.20, as noted above). Based on the completed work, staff would support a reimbursement equal to $2,040.00 at this time, which is 40% of the submitted invoice for the awning and of the original bid estimate for the stucco work. Staff believes the work completed is consistent with what was proposed and approved by the EDA. Alternatives 1. Offer and pass a motion directing staff to reimburse the Eagle's Club, 220 2nd Avenue West, an amount of $2,040.00, consistent with the loan agreement for this fagade improvement. 2. Table the request for additional information. Attachments: Eagle's Club Invoices Eagle's Club Reimbursement Agreement Eagle's Club original memo Hewitt Stucco, Inc. 22556 Texas Ave. S Lakeville, MN 55044 952 - 461 -1970 BILL TO Eagles Club ,.,.,. ,. , . �r Invoice DATE INVOICE # 11/6/2013 857A f 10/07/2013 01:51 6127222930 i AWNING r+ vww.ACMAwnwngecom Date: May 8, 2013 Brim Kelly To GaMn Pat =6 f1oorr*%ron Ave MI lNuff Avenua last fit "poCis MN 55407 &Wwpea MN M378 612-722:2731 - 6124112.3723 Fax: 612-722 -2030 qtt Golan i k$911y�s5P�yBrina enm 8c�bi�outges�gmaiteem PAGE 02/02 WORK BITE Shalmpea Eagles Aaft #4120 220 2nd Avenue Wont Shalcopoa MN $5378 •.LlirdWTT1Y..:.' 11�CFtIPTtdP1 UNBT�rrN, `, . ! welded home 6te6onary'awrdng. Traftenal Style A -Hatd Valance, f 1 North sid0 3 6"tallx,7'prgoctlanx?2 trMcle, i $1,ti$5,00 t +r Choice of Sunbrellb cover color. I` 1 1I( I 1 Whir lekrre o» 5vrd: Shakopee EaglesAmu 4124, x:5400' t Wrla ftW on both ends. J 1 Ads! lor Rack t l 10. ctYmyl cover and an crate bottom. as ,00 I; I depMA(0,41r4d:Mm,.s for r, o ptala� see m�wa pedutm ari �- -�-y -- 2.q�ry oNiaadoitatdaM( WooSwne, sabow�p. o�o�m► imobi�ymmbev�ri�6amomodoNY�wdpenGtdem. TOTAI 1 S99/1bOVe and oil heaxne �n eoara drretv�v eW abow6ti "hue a` AI6�asmwNi a7naV�nrupen �ltllan aaDIdetritordvlq} e beY011d o 1. 0~D tw WM%bwd4w,1 oe�aryinscn MUpmabw6wak Wodmmns 0jr—d- ndPidd( o1f�611ty�onaad�oYa +rad�46aL*M- AbyAdnaAw+inp 9, eatsidiarpytaniNdb6aaa Oweamitw6e dwmod[aww*.wlat�ied�rt,RSead apl�rloatlw�sad.sThsdwi May,on,�w; J 4, ildepmpraolm�pr6r► vtlr4�wntryue� .wteoo�ad.�ddn'JOyy� r S r b�diund7fll sAOneA�nDta�rY�+ �+�nllpkiui(rtNpymt�+tsr4oeheti I - j Acceptanoe of Pwpowl I The abbva prices, sm- 4fications and conaldons are sWSfaMq end era hereby aexeP*d. You are authorized to do Ibe work #% aPOdroxf. Payment vA be irode av w twd above. ca".BignMUte Thank you for your business! Brian V� Repayment Agreement Shakopee Downtown Fagade Improvement Program THIS AGREEMENT, made and entered into this Zci-o' day of -3P" LAtL -Y , 20_L5 by and between Eagle's Club (hereinafter referred to as "Owner "), and the Economic Development Authority for the City of Shakopee, having its principal office at 129 Holmes St. South, Shakopee, Minnesota 55379 (hereinafter referred to as "Lender"). WHEREAS, on the 22nd day of January, 2013, hereinafter referred to as the "effective date ", The Lender agreed to grant to the Owner a Deferred Payment Loan, hereinafter referred as "Deferred Loan," relating to the real estate hereinafter described, in the amount of $7, 077.20. NOW THEREFORE, in consideration of the said Deferred Loan, the parties do hereby agree as follows: 1. That the Owner promises to use the proceeds of the Deferred Loan for the purposes of installing an awning on the front of the building, replacement of windows and a door on the north and west elevations of the building, and installing.cultured stone and stucco on the front/north, east and west elevations (all consistent with the design and materials submitted to and approved by the city), for the building located at 220 2nd Avenue West in the City of Shakopee, Minnesota. 2. That if the Owner sells, transfers or otherwise conveys the real estate hereinafter described, within a period of five (5) years from the effective date of the Deferred Loan (to wit, January 22, 2018), the Owners will pay to Lender a pro -rated share of the Deferred Loan equal to twenty percent (20 %) of the amount of the Deferred Loan for each year prior to January 22, 2018 that the sale occurs. For example; if the Owner sells the real estate hereinafter described in July, 2015, the Owner must pay Lender fifty percent (50 %) of the amount of the Deferred Loan. That any such repayment shall be made to the Lender no later than the 30th day following such sale, transfer or other conveyance, or on such later date or dates as the Lender, in its sole discretion, may designate. That as security for the Owner's obligation of repayment, and subject to the terms and conditions of this Agreement, the Owner hereby grants, and Lender shall and hereby does have, a lien on the real estate hereinafter described as the full amount necessary to satisfy said repayment obligation and the cost including reasonable attorney's fees, of collecting the same. The real estate subject to said lien is situated in Scott County, Minnesota, is located at 220 2nd Avenue West, Shakopee, MN and is legally described as: Lot 8 Block 32 City of Shakopee Scott County, Minnesota, according to the plat on file and of record in the Office of the Register of Deeds in and for said county and state, 4. Promptly after the date of any sale, transfer or other conveyance of the above - described real estate (or, in the event of a sale by contract for deed at least ten (10) days prior to such date of sale), the Owner or the heirs, executors, or representatives shall give the Lender notice thereof. 5. In the event the Owner or the heirs, executors or representatives shall fail or refuse to make a required repayment within said limited period, the Lender may, with or without notice to the Owner, foreclose said lien in the same manner as an action for the foreclosure of mortgages upon said real estate, as by statute provided_ 6. Said lien shall terminate and shall be of no further force or effect in the event the Lender has not, on or before January 22, 2018, commenced an action in the aforesaid manner to foreclose the same. 7. This Agreement shall run with the aforesaid real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors and assigns. 8. If this agreement is executed by a contract for deed vendor or a mortgagee of the property, as the Owner, such.execution shall be deemed for the purpose of establishing and continuing the existence of the indebtedness described herein and the lien granted herein. However, in the event of default of the terms hereof, neither the Lender nor its assignees shall take any action against such contract for deed vendor except such as maybe necessary in order to subject to the satisfaction of said indebtedness the property described herein. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. Eagle's Club Economic Development Authority for the City of Shakopee B � " `� By 6 Y President Its rolfc& 1 10 By Executive Director STATE OF MINNESOTA ss COUNTY OF SCOTT ) �day �^ r%G� -�' Th oregoi in rumen a cknowledged before me this of 20 by (nGr% n of the Eagle's Club. Lori J. Hensen NOTARY PUBLIC Notary P lic % My Com ' sion Expires: SM6 of Minnesota 1W cmffouim Expims 1.314047 STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoi�i strument ° acknowledged before me this ,L day o 2�, by ' G'P lit ti President of the Economic Development/ Authority of the City of Shakope , Minnesota, on behalf of the Economic Development Authority. - KIMBERLY AN� N ECKMAN NOTARY PUBLIC - MINNESOTA W Commission Expires Jan. 31, 2017 STATE OF MINNESOTA ) ss COUNTY OF SCOTT ) 'x/a"', Notafy Public My,Commission Expires: The. �foregoin . strum nt w kw* ged before me this day of 20[3, by /)U2 �l�.l� , Executive Director of the Economic Develop nt Authority 'of City of Shakopee, Minnesota, on behalf of the Economic Development Authority. KIMBERLY ANN WECKMAN 1U`v NOTARY PUBLIC- MINNESOTA MYC=M"1MExpiresJM.31,2017 Notafry Public t My Commission Expires: 1 This instrument is exempt from registration tax under Section 287.06 of Minnesota Statutes. Drafted by: City of Shakopee 129 South Holmes Street Shakopee, MN 55379 i S11- 3<DS.Kt71'T'.E TO: Mayor and City Council Mark McNeill, City Administrator FROM: Mark Noble, Planner II DATE: 01/22/2013 ` s 5. SUBJECT: Request of Eagle's Club for Facade Improvement Program funding for exterior building improvements for 220 21id Avenue West. Action Sought Offer and pass a motion directing staff to prepare a loan agreement for building exterior improvements for the Eagle's Club at 220 2nd Avenue West. INTRODUCTION: The City received the attached application for a loan under the Facade Improvement Program. Eagle's Club is proposing to remodel the front elevation of their building, located at 220 2pd Avenue West. The request included a number of proposed improvements, as noted below: DISCUSSION: The Facade Improvement Program is a deferred loan program for the restoration and enhancement of Shakopee's Commercial Districts. This program in some form has been in place for a number of years, and has recently been revised, with the most significant changes pertaining to the percent snatch of the loan (previously 50 %), and the maximum loan amount (previously $25,000). Additionally, the review committee was more formally developed, and there was an additional step incorporated into the process; that being a review by the EDAC. As noted above, the applicant did submit bid proposals for the five (5) elements of improvements. As proposed, 40% of the total proposed project cost would equal $7, 077.20. The maximum amount for any one loan is $15,000.00. DESIGN REVIEW COMMITTEE RECOMMENDATION: On December 3rd and December 20th, 2012, the design was reviewed by a committee consisting of representatives of the City's EDAC, HPAC (Historic Preservation Advisiory Committee), Chamber of Commerce, and city staff. After considerable discussion, that committee conducted an evaluation of the project and determined that the applicant met the necessary criteria; therefore, the committee recommended approval of the requested loan, with conditions that: The cultured stone be installed on the front wall, in the front entrance area, on both the east and west elevations of the one story brick segment of the building, and along the east elevation, -from the one story brick segment of the building to the north wall of the designated smoking area. That stone shall extend from 2" above the sidewalk to the existing brick line as identified in the existing front entrance area. New cultured stone $6,5001 _..._ . � 12. 'New Stucco $2,865f r3 4 New Awning $3,828 F. New Windows and Doorway $3,000 tom' ` New siding on east addition $1,500: _._ TOTAL $17,693! DISCUSSION: The Facade Improvement Program is a deferred loan program for the restoration and enhancement of Shakopee's Commercial Districts. This program in some form has been in place for a number of years, and has recently been revised, with the most significant changes pertaining to the percent snatch of the loan (previously 50 %), and the maximum loan amount (previously $25,000). Additionally, the review committee was more formally developed, and there was an additional step incorporated into the process; that being a review by the EDAC. As noted above, the applicant did submit bid proposals for the five (5) elements of improvements. As proposed, 40% of the total proposed project cost would equal $7, 077.20. The maximum amount for any one loan is $15,000.00. DESIGN REVIEW COMMITTEE RECOMMENDATION: On December 3rd and December 20th, 2012, the design was reviewed by a committee consisting of representatives of the City's EDAC, HPAC (Historic Preservation Advisiory Committee), Chamber of Commerce, and city staff. After considerable discussion, that committee conducted an evaluation of the project and determined that the applicant met the necessary criteria; therefore, the committee recommended approval of the requested loan, with conditions that: The cultured stone be installed on the front wall, in the front entrance area, on both the east and west elevations of the one story brick segment of the building, and along the east elevation, -from the one story brick segment of the building to the north wall of the designated smoking area. That stone shall extend from 2" above the sidewalk to the existing brick line as identified in the existing front entrance area. 2. Install stucco from the cultured stone to the roof line of the one story brick segment of the building, with a stone ledger separating the stone from the stucco. 3. Replace the four (4) windows in the 1 st floor elevation/entrance area, and the most northerly window on the west elevation (first floor), and include new trim to match the windows on the second story. 4. Replace the doorway on the west elevation, and include new trim to match the windows on the front elevation. 5. Install an awning across the front of the building, consistent with the design submitted with the application. Additionally, the committee recommended that the ash trays on the front of the building be eliminated, that the building address be tastefully identified on the front elevation (and in compliance with any Fire Code requirements), that downspouts be provided to eliminate the potential for water runoff directly onto the new siding, and that the north wall of the smoking area be finished with siding to match the existing east side elevation. ECONOMIC DEVELOPMENT ADVISORY COMMISSION RECOMMENDATION: On January 16, 2013, the EDAC reviewed this application, and by a 6 -0 vote, they recommended approval of the request consistent with the design review committee recommendation. Since the review by the EDAC and their recommendation is a new step in the consideration of the application, they had extensive discussion on how the process worked or what might need to be modified. From that discussion and specific to this application, staff was to follow up on four (4) items: 1) contact the applicant and get their opinion on the application process; 2) find out what is the timing of their proposed project; 3) what was the number of points that this project was awarded, based on the matrix that was part of the review of this project; and 4) staff should proceed to market this program by ensuring it is included on the City website, and to provide a number of brochures /applications to the Chamber of Conunerce to share with their members. Staff will follow up with the applicant upon the completion of this review, and provide the EDAC with their response. It is staff's belief that the applicant had intended to proceed quickly with the project, but that the weather conditions will have some effect on this time table. The Design Review Committee awarded 13 points (20 maximum available) for the project, and will look to modify the matrix as the applications /process evolves, particularly the questions being evaluated and the pointing system by which the project should be evaluated. Lastly, staff will provide the necessary information to post the materials on the City website, and will be providing the Chamber with a number of applicationsibrochures in the very near future. RELATIONSHIP TO CITY GOALS: This item relates to Goal B. Positively manage the challenges and opportunities presented by growth, development and change. ALTERNATIVES: 1. Offer and pass a motion directing staff to prepare a loan agreement for building exterior improvements not to exceed $7, 077.20 for Eagle's Club at 220 21d Avenue West, with conditions as noted above. 2. Offer and pass a motion directing staff to prepare a loan agreement for building exterior improvements not to exceed $7, 077.20 for Eagle's Club at 220 2nd Avenue West, with revised conditions. 3. Deny the request for Fagade Improvement Program funds. 4. Table the request for additional information. ACTION REQUESTED: Offer and pass a motion directing staff to prepare a loan agreement for building exterior improvements not to exceed $7, 077.20 for Eagle's Club at 220 2nd Avenue West, with conditions as noted above. Mark Noble Planner II Attachments: facade agreement evaluation/matrix