HomeMy WebLinkAbout3.c. Valley Sports Facade Improvement Program
3C!-
CITY OF SHAKOPEE
Memorandum
CASE NO.: NA
TO: Economic Development Authority
Mark McNeill, City Administrator
FROM: Mark Noble, Planner II
SUBJECT: Downtown Fa9ade Improvement Program
MEETING DATE: July 21,2009
INTRODUCTION
The City recently reimbursed David W. Jansen, owner of Valley Sports, in an amount of $433.00 for window
improvements that were approved 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.
The building which is presently occupied by Valley Sports, located at 102 1st Avenue West, received
approval of a loan for $10,882.00 to help fund a project that included sign rewiring, installation of 7 new
storefront windows, and 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 original 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, and most recently, Mr. Jansen
had one of the windows replaced, with the City providing payment in the amount of $433.00 for the completion
of that work.
At this time, Mr. Jansen has stated that he is no longer pursuing the installation of the remaining 6 windows;
therefore, staff is recommending that the EDA review and approve an amendment of the original Repayment
Agreement in a reduced amount of$2,135.50, and to record this document with Scott County.
ALTERNATIVES
The EDA may choose to either approve this amendment request, or retain the original agreement, and direct staff
to record the appropriate document at Scott County.
ACTION REQUESTED
Based on the review of this application, staff recommends that the Economic Development Authority authorize
the appropriate officials to enter into an amendment agreement with David Jansen, owner of the property at 102
1st Avenue West, for a deferred loan from the Downtown Fa9ade Improvement program to reduce the fund from
$10,882.00 to $2,135.50 for the cost of the proposed window, frame and sign restoration.
Mark Noble
Planner II
h:\cc\2009/07-21 Walley Sports. doc
Repayment Agreement
Shakopee Downtown Facade Improvement Program
THIS AGREEMENT, made and entered into this day of , 2009 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.
WHEREAS, on the 21st day of July, 2009, the Lender agreed to reduce the Deferred Load relating
to the real estate hereinafter described, to $2,135.50.
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 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 (~) 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, accordinG to the plat of Shakopee City on file and of record in the Office of the ReGister
of Deeds in and for said county and state, described as follows: StartinG at the Northeast corner of
said Lot 6: and runninG thence Southerly on the West line of Holmes Street. 27.5 feet to the South
line of a party wall: thence Westerly alonG said party wall line 89.0 feet: thence Northerlv 27.3 feet
to the South line of First Street: and thence Easterly alonG said Street line 89.0 feet to place of
beqinninG. OR APPROXI MA 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 WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above.
David W. Jansen Economic Development Authority for the City of
Shako pee
By By
President
Its By
Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ,
2009, by David W. Jansen, owner of 102 1st Avenue West, 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
My Commission Expires:
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ,
2009, by , President of the Economic Development Authority of the City
of Shakopee, Minnesota, on behalf of the Economic Development Authority.
Notary Public
My Commission Expires:
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ,
2009, by , Executive Director of the Economic Development Authority
of the City of Shakopee, Minnesota, on behalf of the Economic Development Authority.
Notary Public
My Commission Expires:
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