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Home My WebLink About4. Downtown Facade Improvement Program ~c; CITY OF SHAKOPEE Memorandum CASE NO.: NA TO: Economic Development Authority Mark McNeill, City Administrator FROM: Mark Noble, Planner II SUBJECT: Downtown Fayade Improvement Program MEETING DATE: September 18, 2007 INTRODUCTION The City recently received a revised application from David W. Jansen, owner of Valley Sports, in which he is requesting loan approval as part of the Downtown Fayade Improvement Program. This is a deferred loan program in which the loan is forgiven on a sliding scale over a 5 year period. Loans are available for up to 50% of the project costs, to a maximum of $25,000 per property. Eligible properties include commercial properties in the historic downtown area (including the south side of 1 st A venue from Fuller Street to Sommerville Street, and Holmes, Lewis and Sommerville Streets between 1st Avenue and 2nd Avenue). The building which is presently occupied by Valley Sports, located at 102 1 st Avenue West, is listed in the County records as being built in 1898. It has been determined that the building has historic value inside and out. On February 20,2007, Mr. Jansen received approval of a loan for $7,953.00 loan to help fund a project that totaled $15,906.00 ($1,488.00 for sign rewiring, $12,501.00 for installation of 7 new storefront windows, and $1,917.00 for new sign installation). The intended work was to include the replacement of windows on the east and north elevations, and the renovation of the existing wall sign(s) on the north elevation. DISCUSSION Since that approval, Mr. Jansen has had the sign rewiring and installation completed, with the City providing payment in the amount of $1,702.50 for the completion of that work. Additionally, Mr. Jansen, staff, and the glass replacement contractor have had numerous discussions regarding the size and type of glass that was proposed as part of the project, with it eventually determined that the replacement glass shall consist of glass that matches the existing glass size; that no additional framing which would reduce the openings and/or provide for additional panes of glass shall be installed. Since the original bid from the contractor proposed additional framing, Mr. Jansen has resubmitted a revised bid, which resulted in an increase from $12,501.00 to $18,359.00 for the glass installation. Mr. Jansen is asking the City Council to consider this modification, and grant him an additional $2,929.00 for the installation of glass in his building facades. ALTERNATIVES Program guidelines state that in order to be eligible, an improvement must be to a street- facing fayade and would have to be a restoration or enhancement project; not regular maintenance. The recommended funding would support work on 2 facades (north and east elevations) ofthe building that are adjacent to 1 st Avenue West and Holmes Street South. ACTION REQUESTED Based on the review of this application, staff recommends that the Economic Development Authority authorize the appropriate officials to enter into an agreement with David Jansen, owner of the property at 102 1 st Avenue West, for a deferred loan from the Downtown Fayade Improvement program to fund an additional $2,929.00 (overall total of $10,882.00) for the cost of the proposed windows, frames and sign restoration. ~~ Planner II h:\cc\2007\09-18\V alley Sports. doc Repayment Agreement Shakopee Downtown Fac;ade Improvement Program THIS AGREEMENT, made and entered into this day of , 2007 by and between David W. Jansen (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 18th day of September, 2007, hereinafter referred to as the "effective date." The Lender agreed to grant to Owner(s) a Deferred Payment Loan, hereinafter referred as "Deferred Loan," relating to the real estate hereinafter described, in the amount of $10,882.00. NOW THEREFORE, in consideration of the said Deferred Loan the parties do hereby agree as follows: 1. That Owner promises to use the proceeds of the Deferred Loan for the purposes of purchasing and installing seven (7) new storefront windows and new signage (and related electrical work) for his building located at 102 First Avenue West in the City of Shakopee, Minnesota. 2. That if Owner sells, transfers or otherwise conveys the real estate hereinafter described, within a period of five (m years from the effective date of the Deferred Loan (to wit, September 18, 2012), Owner 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 September 18, 2012 that the sale occurs. For example, if Owner sells the real estate hereinafter described in September, 2009, Owner must pay Lender sixty percent (60%) 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. 3. That as security for Owner's obligation of repayment, and subject to the terms and conditions of this Agreement, 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 102 First Avenue West, Shakopee, MN and is legally described as: All that part of the North Half of Lots 6 and 7, Block 22. City of Shakopee, Scott County, Minnesota. accordina to the plat of Shakopee City on file and of record in the Office of the Reaister of Deeds in and for said county and state. described as follows: Startina at the Northeast comer of said Lot 6; and runnina thence Southerly on the West line of Holmes Street, 27.5 feet to the South line of a party wall; thence Westerly alona said party wall line 89.0 feet; thence Northerly 27.3 feet to the South line of First Street; and thence Easterly alona said Street line 89.0 feet to place of beainnina. OR APPROXIMA TEL Y the North 27.4 feet of the East 89.0 feet of the North Half of said Lots 6 and 7 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), Owner or his/hers heirs, executors, or representatives, shall give the Lender notice thereof. 5. In the event Owner or his/her heirs, executors or representatives shall fail or refuse to make a required repayment within said limited period, the Lender may, with or without notice of 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 September 18, 2012 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 one of the Owners, 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 may be necessary in order to subject to the satisfaction of said indebtedness the property described herein. IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first written above. Borrower: David W. Jansen EDA President Executive Director EDA Secretary State of Minnesota ) ) County of Scott ) On the day of ,2007, before me, a Notary Public with and for the said County, personally appeared David W. Jansen, an individual to me known to be the person described in and who executed the foregoing instrument and acknowledging that he executed the same as his free act and deed. Notary Public State of Minnesota ) ) County of Scott ) On the day of , 2007, before me, a Notary Public with and for the said County, personally appeared , to me known to be the person(s) described in and who executed the foregoing instrument and acknowledging the he executed the same as his free act and deed. Notary Public 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 Cardinal Exteriors, Inc. Office: 4110 Valley Industrial Blvd. S. Shakopee P.O. Box 553 MN License #20277347 4110 Valley Industrial Blvd. S. ~t\l:lI""nAD UN &;~~7Q Phone (952)445-8638 FAX (952) 445-8036 Estimate Customer Name / Address Valley Sports Date 102 1st Ave. W. Shakopee, MN 55379 6/19/2007 Job Address Customer E-mail Valley Sports Customer Phone Customer All. Phone Estimate # 102 1st Ave. W, Shakopee, MN 55379 952-445-3340 1007 Description Qty Rate Total Store Front Window System with Insulated Glass 1 18,359.00 18,359.00 (Marvin) We propose to provide and install (7) windows. The system includes high performance glass package (Energy Star Compliant), interior cedar trim to match existing (painting by others) and maintenance free exterior trim to match exterior colors. Signature page required. Web Site I www.cardinalexteriors.net T I Total $18,359.00 This document Is an estimate. In order to accept this estimate as a contract, sign & date here: Signature: Amounts over $2000 require a signature page. Terms Due on receipt Cardinal Exteriors 02-14-07 952 445 8638 First Ave. W. Terry Severson 612 267 1662 MN lie 20277347 H r 0 N Valley Sports L M E s I W4 I I W5 I W6 W7 W3 North Elevation Window Description (All) W1 W2 Pella Fixed (Non-operating) Large Clad frame Hartford Green, 1" Insulated, Dual Glazed East Elevation