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Home My WebLink About3.C. Consideration of a Commercial Exterior Improvement Program Loan for CEM Properties, LLC Consent Business 3. C. SHAKOI'EE TO: Economic Development Authority FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 03/17/2015 SUBJECT: Consideration of a Commercial Exterior Improvement Program Loan for CEM Properties, LLC Background CEM Properties, LLC has requested assistance in the form of a deferred/forgivable loan from the City's Commercial Exterior Improvement Program. If the application is approved, the following work will be done to the exterior of the building: •Painting •Installation of Panels Total estimated project costs for the exterior improvements is $81,649. CEM Properties, LLC is requesting a deferred/forgivable loan in the amount of$25,000. During its March 11 meeting, the Economic Development Advisory Committee recommended the City award a 5-year forgivable loan in the amount of$25,000 for the renovations of the property located at 828 First Avenue East, Shakopee. Action Sought If the EDA concurs, it should, by motion, approve a Commercial Exterior Improvement Loan in the recommended amount of$25,000. The EDA should also authorize the appropriate officials to enter into Repayment Agreement with CEM Properties, LLC, for the building located at 828 First Avenue East, Shakopee. Attachments: Application Rendering Commercial Exterior Improvements SHAKOPEE Loan Application The City of Shakopee is proud of its historic downtown and other commercial areas and would like to encourage property owners to maintain and invest in their properties in order to preserve them as a profitable businesses and attractive destinations for years to come. The Commercial Exterior Improvement Loan Program,formerly known as the Facade Improvement Program,allows businesses to apply for a forgivable loan from the City of Shakopee for exterior building improvements. HOW IT WORKS BEFORE For successful applicants,the City of Shakopee pays up to 50 percent of project costs for eligible exterior-building improvements.A typical a7. AUTO PARTS MoiJ:sc:Ts award is$25,000.The City may consider additional funding requests for - renovations to historic commercial properties.Awarding of loans is �a j dependent upon availability of funding. LOAN FORGIVENESS Forgiveness of a loan takes place over a five-year period with 20 percent of the award forgiven annually.The City may extend or reduce the 230 First Ave.E. repayment period based on the dollar amount of the award. If the benefiting building is sold within the period of the loan,the loan AFTER must repaid.The City may consider alternatives to immediate 0.10.1.,.., repayment. The applicant has one year from the award date of the loan to complete tO FOR THE JOURNEY the project and request payment of loan funds.All loan funds will bey t; y , .; paid upon receipt of paid invoices for the project and proof of payment .• eM HOW TO APPLYi . Interested property owners are encouraged to apply.There is no application deadline;however,funds are limited and will be awarded to qualifying applicants on a first-come,first-served basis.Final decisions on applications are made by the City's Economic Development Authority. APPLICANT INFORMATION Applications must be submitted by the property owner(s)or the building tenant in conjunction with the owner(s). Name(s): CEM Properties, LLC Telephone: 952-224-2054 Email: chris@citiesedge.com Mailing Address: 828 First Ave E City: Shakopee State: MN Zip Code: 55379 COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota• 55379-1351 • 952-233-9300 •FAX 952-233-3801 •www.ShakopeeMN.gov PROPERTY INFORMATION The Commercial Exterior Loan program is open to all commercial properties,constructed before 1980,in the City of Shakopee. Address of the Building to be Rehabbed: 828 First Ave E Parcel ID #: 270040651 and 270040652 Age of the building: 1962 Number of stories: one Is the building currently vacant? Yesf No If yes, estimated length of vacancy: Business/Occupant Name: Cities Edge Motorsports Has this property previously received a facade grant? ['Yes IN No If yes,for how much,in what year and what were the funds used for? PROJECT INFORMATION Eligible expenses are limited to improvements that are visible from the exterior: • Roofs(flat or pitched) • Painting • Windows,Doors • Lighting,Awnings,Signage • Siding,Brick • Restoration of historic details • Removal of blight from property • Other items deemed appropriate by the City's Economic • Planting of trees Development Authority Loan recipients are required to seek at least two bids for all projects.It's assumed the EDA will select the contractor with the lowest bid. Estimated Total Cost of Proposed Rehabilitation Work: $ 81,649 (not incl. new windows, bldg/pylon signs Requested Loan Amount from the Program: $ 25,000 Describe proposed improvements: Remove gable on roof; repair/replace and paint roof edge metal and facade metal; install metallic panels as per drawing (attached); buildup and install panels to enhance appearance of awning support poles as per drawing; paint remaining frontage as per drawing; total cost of facade and signage improvements will exceed $100,000. REQUIRED ATTACHMENTS • Renderings and/or plan drawings showing proposed improvements. • A minimum of two contractors'bids or proposals with a breakdown of itemized costs. • Proof of Insurance on the building COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351 •952-233-9300• FAX 952-233-3801 •www.ShakopeeMN.gov DATA PRACTICES ACT The information that you supply in your application to the City of Shakopee/Shakopee EDA("City")will be used to assess your eligibility for financial assistance. The City will not be able to process your application without this information. The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private. If financial assistance is provided for the project,the information submitted in connection with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I have read the above statement and I agree to supply the information to the City with full knowledge of the matters contained in this notice. I certify that the information submitted in connection with the application is true and accurate. Digitally signed by Chnstopher Smith Christopher Smith ° cu e=s®3 ea a: 1 Fy_t_r„..,,,Dii, ,,, ')('pt%&t Lo?or r_ Or-AN C� u2Ib(L ExtyT 3ut�,aac, A11Ec T. rr(E.Ftr • mil-, � ,a.,Erat f ,op,uv• f t�Ai 101-040 niTALA. 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