HomeMy WebLinkAbout4.B. Commerical Exterior Improvement Program loan - The Franklin, LLC. 11.11111111 General Business 4. B.
SHAKoPE E
TO: Economic Development Authority
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 06/16/2015
SUBJECT: Commercial Exterior Improvement Program Loan -- The Franklin, LLC
Background
The Franklin, LLC has requested a deferred/forgivable loan from the City's
Commercial Exterior Improvement Program to renovate the vacant property located
at 3381st Avenue E. If the application is approved, the following work will be done
to the exterior of the building:
•Windows
•Retaining Wall / Landscaping
•Masonry
•Decking
• Shingles
•Gutters and Downspouts
•Paint
•Awnings
The total estimated project costs for the exterior improvements is $564,000. The
Franklin, LLC is requesting a deferred/forgivable loan in the amount of$100,000.
The current program maximum is set at $25,000 but due to the extensive
renovations, additional funds are being requested.
The Franklin, LLC has recently purchased this 70+ year old building and plans
to renovate it and open O'Brien's Public House, an Irish themed restaurant with
outdoor seating. The building was vacant prior to the purchase.
As part of this project, and in an effort to revitalize that block, The Franklin, LLC
and/or it's affiliates are in the process of acquiring the four neighboring parcels and
rehabilitating those properties. The total project costs is estimated to be more than
$3.1 million.
The EDAC reviewed this application on Wednesday, June 10, 2015 and are
recommending $100,000 be awarded to The Franklin, LLC.
Action Sought
If the EDA concurs, it should, by motion, approve a Commercial Exterior
Improvement Loan in the recommended amount of$100,000. The EDA should also
authorize the appropriate officials to enter into Repayment Agreement with The
Franklin, LLC, for the building located at 338 1st Avenue East, Shakopee.
Attachments: Application
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 ,
award is$25,000.The City may consider additional funding requests for ! 4
renovations to historic commercial properties.Awarding of loans is
dependent upon availability of funding.
LOAN FORGIVENESS
Forgiveness of a loan takes place over a five-year period with 20 percent
of the award forgiven annually.The City may extend or reduce the 230 First Ave.E.
repayment period based on the dollar amount of the award.
If the benefiting building is sold within the period of the loan,the loan AFTER
must repaid.The City may consider alternatives to immediate
repayment. _... ,
EY
The applicant has one year from the award date of the loan to complete FOR THE louiaav
the project and request payment of loan funds.All loan funds will be
paid upon receipt of paid invoices for the project and proof of payment.
HOW TO APPLY
Interested property owners are encouraged to apply.There is no
application deadline;however,funds are limited and will be awarded to qualifying applicants on a first-come,first-served
basis.Final decisions on applications are made by the City's Economic Development Authority.
APPLICANT INFORMATION
Applications must be submitted by the property owner(s)or the building tenant in conjunction with the owner(s).
Name(s): v •Re '— c CtG o .. � .c__.'b. •' • ► ��, a- a
Telephone: a'/Z`7 11-31 yS` Email: Sro @ ve,6(rime+�ititn .
Mailing Address: 1 Viih Gm()
city: SPAKafro State: f 1 Zip Code: 6-53 7
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South•Shakopee,Minnesota•55379-1351 •952-233-9300•FAX 952-233-3801 •www.ShakopeeMN.gov
PROPERTY INFORMATION
The Commercial Exterior Loan program is open to all commercial properties,constructed beforee1980,in the City of Shakopee.
Address of the Building to be Rehabbed: 338 I$rig- 2 A10 3Zd/32$ I SV /24 5# ?1S1�'Z
J ,Savo 3,77-241
Parcel ID #: a7 OO) 1156 Age of the building: 7O Number of stories: / fti
Is the building currently vacant?r7 Yes No If yes, estimated length of vacancy:
Business/Occupant Name: {teVI OFl/eLoPMi rr f AI/4-0/1 eervte/414, ( ) LLC--
Has this property previously received a facade grant? nYes
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: $ j e ,C7/Priga)
Requested Loan Amount from the Program: $ /DDS DD 0
Describe proposed improvements:
S' 19CCa
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
Estimated Total Cost of Proposed Rehabilitation Work:
The total investment in the 5 properties that comprise more than%of the block at 1st St and Spencer St
South will be more than$3,100,000. The cost of the rehabilitation work associated with the exterior
work is estimated to be$564,000.
Description of Improvements:
We will be totally remodeling the blighted property at 3381St Ave East and turning the 70 year old
structure into a new Irish themed restaurant with outdoor dining overlooking the Huber Park pavilion
and the Minnesota River. The 5 properties that are pieces of the restaurant project will be cleaned up,
painted and then generously landscaped (see attached architect rendition). As part of the project the
empty home at 328 1st Ave East will be utilized by the Shakopee Fire and Police Departments for training
then taken down to make room for an expansion of the restaurant building, outdoor dining area and
green space. The rental properties at 126 Spencer St S and 327-29 2"d Ave E will be improved as part of
the project by removing debris,volunteer trees, painting, landscaping and then the installation of
asphalt parking lots.
The improvements undertaken to improve 3381st Ave E is part of a larger effort to clean up 5 properties
that are currently suffering from a great lack of attention on a very visible corner of Shakopee's
Downtown Business District.
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.
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Applicant Signature "i I e ate
Co-Applicant Signature/Title Date
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.
I/We certify that all statements on this application are true and correct to the best of my/our knowledge. I/We understand that
any intentional misstatements will be grounds for disqualification.
I/We have read the City of Shakopee's Commercial Exterior Improvement Policy and will abide by the rules and regulations set
forth in the policy adopted on Sept.20,2014.
I/We authorize program representatives the right to access the property to be improved for the a purpose of the deferred loan
program and to take photographs of the structure before and after rehabilitation.
I/We understand that I/we are 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.
I/We 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 of the c2' ractor(s).
4011110/
i
Applicant Signa ur• • I e Date
Co-Applicant Signature/Title Date
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South•Shakopee,Minnesota•55379-1351 •952-233-9300 •FAX 952-233-3801 •www.ShakopeeMN.gov
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