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HomeMy WebLinkAbout4.D. Consideration of Commercial Exterior Improvement Journey HoldingsGeneral Business 4. D. SHAKOPEE TO: Economic Development Authority FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 04/15/2014 SUBJECT: Consideration of a Commercial Exterior Improvement Program Loan for Journey Holdings, LLC, 230 1 st Avenue East, Shakopee Background Journey Holdings, LLC, 230 1 st Avenue East, Shakopee, has requested assistance in the form of a deferred loan from the City's Commercial Exterior Improvement Program (previously the Fagade Improvement Program). If the application is approved, the following work will be done to the exterior of the building: • Remove stucco and repair bricks facades in the front and back of the building • Raise the parapet in front of the building • The pedestrian door will be made handicap accessible • The roof will be replaced Two estimates were received: the first was for $85,548 and the second was for $73,910. The program covers 50% of the total costs up to $15,000. Due to the extensive repairs required for this property, Journey Holdings, LLC. is requesting you consider a deferred/forgivable loan in the amount of $36,955. The Commercial Exterior Improvement Committee (EDAC member, Historic Preservation Advisory Committee member, Chamber and City Staff) met on Monday, April 7, 2014 and recommended that this loan be approved in the amount of $36,955. Action Sought If the EDA concurs, it should, by motion, approve a Commercial Exterior Improvement Loan in the amount of $36,955 and authorize the appropriate officials to enter into Repayment Agreement with Journey Holdings, LLC. Attachments: Pictures Application Journey Holdings, LLC Journey Holdings, LLC .rte KTS Moron PqR° Journey Holdings, LLC _. _ TC Journey Holdings, LLC ------------------------------------------------------------ 0 Journey Holdings, LLC 0 --------------------------------------------------------------------------------- { ti ` j k wgm JA..•. .i1rs _ .'i �:. _ ;yid 75 .3. CITY OF SHAKOPEE Commercial Exterior Improvement Program. Application for Deferred Loan I. Applicant Information Business Name: D W rh e Primary Contact Name of Co- ApplicantiProperty Owner Tax ID # (if applicable) a (9 ® 0 _ I & /4anSen Address l _� Lf Y Street Telephone # tY l ed fir. S� 1 ?,r w City State Zip p W3` J. A Email: �r�cJfhe y p �o %Qi � S Y CL90,wn -1 II. Property Information Address of Building to be 30 I S � bve E Property Identification Number (PIN) ©� ge of Tui ldin ! 30 �� .� Numb r f Sto44ie prl e, E,�z • M� 5 , �-efe4v-c�►� C.�G �a� d�t� Date of Last Exterfor�Renovation (if applicable) h 0 0 n Gross area of building 113,90 sq. ft. (exclude non - habitable space such as attics, basements, etc.) Gross area of non - residential space 4 3Do (include commercial, office, etc.) Existing building use(s): Em j+X L-a S� iJS� IJ C&S �a koeee �J ° oomen °I- Merl if flAorc G e C© fbn ofh ttCC'�SSo�i i` 11G►.� car 8 0 n mac= ��"�� 9e: ei w� l►'1 u�" .1jelf Or 1 t ©r ig 4 k Proposed building use(s): �� I I C &A U: \Facade PrograrnVacade loan application final 08222012.doc 111. Ownership Information Ownership Interest in property to be improved: ❑ Contract for Deed Title "Free and Clear" ❑ Other: Specify: ❑ Mortgage 2 Please attach a copy of the most recent Property Tax Statement from the County Assessor's Office and Proof of Insurance on the building. IV. Estimated Rehabilitation Costs and Requested Loan Information Please describe proposed improvements: (please attach additional pages, including any photo of existing building prior to planned improvements; renderings and /or plan drawings showing proposed improvements; a minimum of two contractors' bids or proposals must obtained and submitted along with the application. Please itemize costs when possible.) (( -- PI ec. s e- See, nAri 1, e s AO J o /'h C4 CA VA� Describe the expected impact of the proposed improvements on adjacent or nearby businesses. (In other words, do you have reason to know or believe that other business owners are likely to improve their properties if the outcome of your provements is positiv .) It rs a"Jel 5een n9 enir r -c�, ► t- m e-rn be o ro er� f Q.0 r^, bc cot ufe., a-F ei I�v1 t! e. �r ► rr� Ag cx� h+0 W r, / Cl rock - Q I )CA Y in eon Ci n J .L Urn 0 er�i "Se j •C pJ ,.q l no1- be_ ckojt D UAFacade Programlfacade loan application 108222012.doc 4011 e- ')S 3 Q O 8� Estimated Total Cost of Proposed Rehabilitation Work. $ � 3, f' ' Requested Loan Amount from the Facade Improvement Program $ i *Loan amount may be up to 50% of the total construcly,00 costs, with a magimum of 15, 0; je Source of Remaining Funds Personal Savings ❑ Private- Sector Loan (institution: ) Building Permits & Inspections Applicant is responsible for obtaining appropriate building - permits, per the Shakopee City Code. In the case of improvements that do not require a city- issued building permit, the applicant must submit the name and state license number of the contractor completing the work and agree to an inspection of the work by a city building official. Loan Disbursement Awarded loan funds will be dispersed to the applicant upon submittal of receipts or invoices for supplies purchased and work completed, and verification by the City that the receipts and invoices are bona fide. V. Certification City staff or other authorized representative of the City shall have the right to inspect the property to be improved at any time from the date of application upon giving notice to the owner and to occupants. INVe certify that all statements on this application are true and correct to the best of my /our knowledge. IMe understand that any intentional misstatements will be grounds for disqualification. INVe authorize program representatives the right to access the property to be improved for the purpose of the deferred loan program and to take photographs of the structure before and after rehabilitation. INVe further understand that I/we will make the final selection of the improvements to be made with the loan funds and that the contract for improvements will be solely between me and the contractor(s). The administering agency will not be liable for the inadequate performance o!,pe contractor(s). A i D e Zz n ant Dat U:\Facade PrograrnVacade loan application final_08222012.doc 4 DATA PRACTICES ACT The following notice is provided for those applicants for the Shakopee Downtown Facade Improvement Program that are individuals. The following does not apply in cases where the applicant is a non - individual, such as a corporation. (TENNESSEN WARNING) In accordance with the Minnesota Government Practices Act, the City of Shakopee is required to inform you of your rights as they pertain to the private information collected from you. Private data is that information which is available to you, but not to the public. The personal information we collect about you is private; however. Your name, address and the amount or value of the approved loan funds are public. The information collected from you or from other agencies or individuals authorized by you is used to determine your eligibility for the Facade Improvement Program_ The dissemination and use of the private data we collect is limited to that necessary for the administration and management of the Facade improvement Program. Persons or agencies with whom this information may be shared include: 1. City of Shakopee personnel administering the Facade Improvement Program. 2. Individuals charged by the city with reviewing applications and making recommendations to the Shakopee EDA. 3. Members of the Shakopee Economic Development Authority (only that information needed to approve the application for loan funds andfor payments to contractors). 4. Federal, State, County, local and contracted auditors. 5. The contract for deed holder (only that you are a loan recipient and the amount of the loan). 6. Law enforcement personnel in the cases of suspected fraud. 7. Those individuals or agencies to which you give your express written permission. Unless otherwise authorized by State statute or Federal law, other government agencies utilizing the reported private data must also treat the information as private. You may wish to exercise your rights as contained in the Minnesota Government Data Practices ACT. The rights include: 1. The rights to see and obtain copies of the data maintained on you, 2. To be told the contents and meaning of the data and, 3. To contest the accuracy and completeness of the data. To exercise these rights contact the City of Shakopee, (952) 233 -9300. 1 have read and understo ove information regarding my rig is as u ject of govemment data. 3ateat Applicant Plicant f WFacade Program\facade loan application_final_08222012.doc Journey Holdings, LLC March 22, 2014 To whom it may concern: I apologize that we are unable to attend the meeting in person to present our case; due to the timing of Arizona Bike Week. We attend all the major national motorcycle rallies to market and sell our clothing lines. These clothing lines we manufacture ourselves, and will be carrying them in our Shakopee store at 230 E. 1St Ave. I hope you find the information in this letter acceptable to answer your questions. The front section of this building dates back to pre -1884 with the construction of it being in Shakopee Brick. This is a red brick that was manufactured in Shakopee from 1876 to the early 1900's. So the building was built sometime between 1876 -1884, see addendum "A ". Shakopee was incorporated in 1870 so this building was constructed very early in Shakopee's history. It is definitely worth restoring to preserve our history in Shakopee. The reason for the request of $36,955.00 is that I am proposing to do both the front and back of building and the roof. Our goal is to make the building as authentic to the 1880's as possible. In addition to the $73,910.00 that we are spending on the outside we have been restoring the inside to the original brick walls, at no small expense. We have removed the stucco and concrete that was overthe brick, sandblasted the walls, and repaired some of the mortar and bricks. We then scraped by hand the remaining residue and sealed the bricks. There are some additional inside brick areas that we want to repair if we can find some antique Shakopee Brick. The Total inside cost will run about $42,000 excluding the store fixtures. Please refer to the proposal from R W O'Brien to see the scope of the work being done, addendum" D ". This Is also the contractor that I plan on using for this project. Besides the front and back being done in a red brick, which is close to that of the historic Shakopee Brick, we will also be raising the parapet in front of the building by two and a half feet. This will match the height of the adjacent buildings on 1st Ave. If you refer to Addendum "C" you will see an artist's proposed rendition of the front of the building. The reason we are completing the back of the building is that it is open to the public parking lot and multiple retail businesses. It should be updated as it currently looks very run down. We will be making the pedestrian door handicap accessible, since the building currently has no acceptable handicap access. We will also be leveling the roof line, which currently slopes to the west; this will give a more finished look like the building. I have also included a competitive bid from Greystone Construction Company, see addendum E. This bid is for $85,548.00, and that does not include the roof replacement in that price. The total square footage of the building is approximately 4,300. The front section (2,100 square feet) which dates back to the late 1800's will be our store. The back section (2,200 square feet) which is newer would be our warehouse area. I used to live in Shakopee from 1983 until 2000. We currently live in Prior Lake. As I understand, in the past you had a 7 year forgiveness plan rather than the current 5 year plan. If it would help with the approval process I would be open to doing this plan over 7 years. Our plan is to be here for many years into the future and become an important part of the downtown Shakopee culture. individuals and groups who frequent our store will not just be from our community but from the Southern and Central Minnesota, Northern Iowa, and Western Wisconsin. This was our customer mix when we had our seasonal store, in the Burnsville Mall. (This was over the Winter Seasons.) Now, image it is spring, summer or fall when these same customers, along with others are looking for an excuse to go on a motorcycle ride. We will become a destination, a draw and when they ride they get hungry, thirsty, need fuel, and will be looking for entertainment. Our store should help the downtown area by bringing in business not only for ourselves but the community as a whole. I appreciate your consideration in our project. I know we would not be able to do this scope of work without this program. If you need to reach me for any questions during the approval process I can be reached on my cell phone at 612 - 723 -8332. 1 will make sure I am available during the meeting times. Journey Holdings, LLC, President ev—i-- �l P, a-,0 2- P-. r..- JW Id -i LEVEL & 13! X, CW FW. 65." 49 El 3 Aa- AW FIR, Er THIRD A gas A.W Al.Wr AW /04 rm,"L &zm—:r= 51 Juryl LLJJ 0- Uum ': E-12 THIRD A gas A.W Al.Wr AW /04 rm,"L &zm—:r= 51 Juryl 'b ?�bf OR Ajf 2003.087.0004 Print, Photographic ?I ttv 1*14am SCHS �C; +`j OF Cf�L/ e_ +� e� C�O ir the Journey 2301st Street Shakopee, MN January 27, 2014 if For The Journey efwfx,jtA Shakopee, MN A Page 1 of 1 Page(s) Proposal R W O'Brien Contracting, LLC 940 Bluebill Circle SHAKOPEE, MN 55379 612 - 916 -5159 robden5205Ca)_yahoo. com Attention: Kyle Hanson A E E FAX Evervthing for the Journey 612 - 723 -8332 -STREET 1 st Street CITY, STATE AND ZIP CODE JOB NA Joum Holdings Remodel JUB LQUATIUN Shakopee, MN. 55379 DATE OF PLANS Same UITY, STATE AND ZIP CODE ARCHITEGT N/A WA 3/12/2014 1. Work to Build parrapit 2.5 feet taller on the front of the building. $3,200.00 3 Remove existing roof to deck, install 2 layers of T ISO insulation and fully adhere a 60 Mill rubber roof $29,800.00 Includes all flashin of existing roof penetrations and wall cap flashing Roof to have 5 year craftmanship warranty and 20 year manufacturers warranty 4. Remove existing brick on front wall and install new brick with rowlock at bottom of windows and $12,700.00 and two accent brick strips at the top of the windows. 5. Remove and install new windows and door_ Clear or bronze color aluminum. Door to have hardware including $15,050.00 devise Aluminum breakmetal sills and comers. Clear insulated Glass, Glass tempered where required. panic 6. Remove existing Garage door and install new manual operated 2" insulated overhead door. $1,500.00 7.. Remove existing service door, enlarge opening and install s' wine aoor Tor nanaicappeu auuebbdumry. w r,.�.rv.v.. Door to have all required hardware 8. Painting of doors. $500.00 Stone rear of building $9,310.00 I Building Permit allowance $500.00 included $500.00 We Propose hereby to furnish material and labor - complete in accordance with above specifications, for the sum or: Seven Three Thousand Nine Hundred Ten and no/100- dollars ($ 73,910.00 ). Payment to be made as follows: $10,000.00 down and balance to be done on bi -weekly draws due 10 days after receipt. All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any auar2600 or deviation imm above specifics- Authorized Rob O'Brien gons kwohft extra costs vsll be executed only upon written orders, and "become an Signature extra dmW over and above the estimate. AN agreements contingent upon strikes. accidents Title President or delays beyond our control. Owner to carry fire. tomado and other necessary insurance. Note: This proposal may be Our workers are fully covered by Workmen's compensallon husance. withdrawn by us if not accepted within 30 days. Acceptance Of Proposal -The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be made as outlined above. Date of Acceptance: Signature Joumey Holdings Proposal Revised for city