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HomeMy WebLinkAbout3.b. Revisions to FLIP Procedures 3b CITY OF SHAKOPEE Memorandum CASE NO.: NA TO: Economic Development Authority Mark McNeill, Executive Director FROM: R. Michael Leek, Community Development Director SUBJECT: Amendments to Fa<;ade Improvement Loan Program (FILP) MEETING DATE: July 21,2009 INTRODUCTIONIDISCUSSION: At its May meeting, the EDA provided direction to staff to make amendments to the FILP regarding; . Requiring a plan from the applicant to fund ongoing maintenance; . A 5-year limitation on how often a business can apply to the program. Five years is proposed because it corresponds with the forgiveness period for loans under the program. AL TERNA TIVES: 1. Offer and pass a motion accepting the proposed changes and directing staff implement them moving forward. 2. Offer and pass a motion accepting the proposed changes and directing staff implement them moving forward. 3. Table the item for additional information. ACTION REQUESTED: Offer and pass a motion accepting the proposed changes and directing staff implement them moving forward. ~ --/.. ~~~ R. Michael Leek Community Development Director H:\CC\2009\07-21 \FILP amendments 07212009.docx 1 (Date) Dear Property Owner: We all know that first impressions are important. The exterior of buildings, both historic and more modem, in Shakopee's Downtown and First Avenue playa significant role in creating the first impression many visitors get when they arrive in Shakopee, as well as the impressions of prospective customers who approach your building and business. The City of Shakopee would like to partner with you and other businesses and property owners in the Downtown and First Avenue corridor to invest in projects that restore and enhance the exterior facades of commercial buildings in these areas. Toward this end, the City have dedicated additional funds to its Fal(ade Improvement Loan Program, and expanded it to include the First Avenue and the Downtown areas. This program provides deferred loads to cover up to 5.0 percent of the costs of eligible improvements, up to a maximum of $25,000.00 per property. Under the terms ofthe program, if the property is retained by its current owner for a period of five years, the loan is then completely forgiven. In the event that the building is sold before five years from the date of the loan, the owner would be required to repay a prorated share of the loan, depending on how many years had passed. Under the program, applications for non-routine maintenance activities may be made every five years. Enclosed youwill find a brochure with additional information about the loan program, as well as an application form. Please review the information, and see if the Fayade Improvement Program could help you with a project you have been considering. If you have any questions or would like to discuss how this program might be of assistance to you, please feel free to contact me at (952) 233-9346 or mleek@ci.shakopee.mn.us. Sincerely, R. Michael Leek Community Development Director CITY OF SHAKOPEE Downtown and First Avenue Facade Improvement Program Application for Deferred Loan I. Applicant Information Name of Applicant Date of Birth Name of Co-Applicant Date of Birth Tax 10 # (if applicable) Address Street City State Zip Telephone # (-) (-) Home Work II. Property Information Address of Building to be Rehabbed Contact Person Telephone #: Age of Building Number of Stories Estimated Market Value Current Annual Property Taxes Gross area of building sq. ft. (exclude non-habitable space such as attics, basements, etc.) Gross area of non-residential space (include commercial, office, etc.) Existing building use: Proposed building use: III. Ownership Information Ownership Interest in property to be improved: o Contract for Deed 0 Title "Free and Clear" o Mortgage D Other: Specify: Name(s) on Title: Specify ownership interest of each individual named on the title Goint, tenants-in-common, life estate, partnerships, corporations, etc): Amount of outstanding principal owed on building: $ 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: (If necessary, please attach additional pages, including any plan drawings, contractors' bids or proposals obtained by the applicant. Please itemize costs when possible.) Estimated Total Cost of Proposed Rehabilitation Work: $ Requested Loan Amount from Small Cities Program - Loan amount may be up to 50% of the total construction costs, with a maximum of $25, 000. $ Source of Remaining Funds D Personal Savings D Private-Sector Loan (Institution: ) D Other: (please specify) 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. Lona-Term Buildina Maintenance Plan The Facade Improvement Loan Program (FILP) is not intended to fund routine maintenance of a building's facade(s). The applicant is to provide with this application a plan that provides the followinQ information; . The life-cycle of materials and improvements funded bv the FILP; . Routine maintenance schedule and procedures for materials and improvements funded under the FILP; . Anticipated source of fundinQ for onQoinQ required maintenance. Loan Disbursement Awarded loan funds will be dispersed to the applicant upon submittal of receipts or invoices for supplies purchased and work completed. v. Certification City staff or an authorized representative shall have the right to inspect the property to be improved at any time from the date of application upon giving due notice to the owner and to occupants. l!We certify that all statements on this application are true and correct to the best of my/our knowledge. l!We understand that any intentional misstatements will be grounds for disqualification. l!We 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. l!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 myself and the contractor(s). The administering agency will not be liable for the inadequate performance of the contractor(s).