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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. fege— / r 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 - {. O — O O — — — — d N co 7 si 0 o o a A. 5t�. O o ;;;LQ o .� Tn o7 t: � �4` L(1 01 01 .A f W I I W E„c fPr ill. iR y < Pe 1,2 ILII " r_ Z o V a Z O111111 �?11. 1pN1' PQ a7 _+fit" U Sy_r O — � iiI F. .moi 111111111 cYl tl!• �S:' 4� r iii' i` r ; k' Z: £4 54h; �• a�; x 0I a is aS ri f o . "watt riy �. y74 1, „,, ?S ;� i:,' 7i 0 aY' ra . U v ,,, + 1. 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