The URL can be used to link to this page

Home My WebLink About3.B. EDA Minutes Consent Business 3. B. SH.t K0I'EE TO: Economic Development Authority FROM: Lori Hensen, Deputy City Clerk DATE: 07/21/2015 SUBJECT: EDA Minutes Action Sought Approve the EDA Minutes of June 16, 2015. Attachments: June 16, 2015 DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South June 16,2015 SHAKOPEE MINNESOTA 7:00 p.m. Present: President Kathi Mocol; Commissioner Brad Tabke;Commissioner Matt Lehman; Commissioner Mike Luce; Commissioner Jay Whiting Staff City Attorney Jim Thomson;Economic Development Coordinator Samantha DiMaggio Present: 1. Roll Call 2. Approval of the Agenda Moved by Matt Lehman, seconded by Mike Luce to approve the Agenda. Vote: 5- 0 Carried 3. Consent Business Moved by Matt Lehman, seconded by Mike Luce to approve the Consent Agenda. Vote: 5- 0 Carried A. EDA Bill List Motion to approve bills in the amount of$7,554.28 for the EDA Fund,which allows for internal charges that are applied to the EDA fund. (Motion carried under the Consent Agenda) B. EDA Minutes Motion to approve the EDA Minutes from April 21,2015 and May 19,2015. (Motion carried under the Consent Agenda) 4. General Business A. Commercial Exterior Improvement Program Loan--Babe's Place Ms. DiMaggio presented a request for a Commercial Exterior Improvement Program Loan for Babe's Place. She stated that the owner of Babe's Place, located at 124 Holmes St. in downtown Shakopee,has requested 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: .New Awning •Installation of New Windows The total estimated project costs for the exterior improvements is$44,430. The applicant is requesting a 5 year deferred/forgivable loan in the amount of$22,215. Babe's Place previously received a Facade Improvement Loan from the City in 2007 for$25,000. These funds were used to restore the brick exterior of the building(removing paint off bricks,new mortar, etc.). The total cost of the repairs at that time were$54,000. The EDAC reviewed this request on Wednesday,June 10,2015 and are recommending an award of $22,215. Cncl. Lehman stated that he has concerns regarding the applicant only submitting one bid, and asked if the applicant could work to get a second bid. Ms. DiMaggio responded that the applicant could work to get a second bid if required to do so,and added that many business owners are having a very difficult time getting contractors to come out for bids on projects. Moved by Brad Tabke, seconded by Mike Luce Motion to approve a Commercial Exterior Improvement Loan in the recommended amount of$22,215. The EDA should also authorize the appropriate officials to enter into Repayment Agreement with Mary Isakson, for the building located at 124 Holmes Street, Shakopee. Vote: 5-0 Carried B. Commercial Exterior Improvement Program Loan--The Franklin,LLC Ms. DiMaggio presented a request for a Commercial Exterior Improvement Program Loan for The Franklin,LLC. She stated that the Franklin,LLC has requested a deferred/forgivable loan from the City's Commercial Exterior Improvement Program to renovate the vacant property located at 338 1st 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. Scott O'Brien,the building owner,addressed the Council and reviewed the plans for the project. He also gave a brief update on the Eagle Pet Store project. Cncl. Luce asked how many other applicants were in process for Commercial Exterior Loans.Ms. DiMaggio responded that there were a few potential applicants,but if necessary they could be carried over into 2016. Cncl. Lehman expressed concern over potential railroad crossings and a possible expansion of Spencer Street in the future. Cncl. Luce expressed concern over parking. Mr. O'Brien reviewed his parking plans with the Council. Discussion: Cncl Luce requested that the forgivable loan timeframe be moved out. Mr. O'Brien agreed to move the timeframe out to 25 years as opposed to 20 years. Cncl. Lehman stated his understanding was that the limit was$25,000. for Commercial Exterior Loans.Ms. DiMaggio stated that the typical loan amount is$25,000, but that the EDA has the ability to go above that amount. Cncl. Luce asked if it was possible to split the loan amounts between 2015 and 2016. Ms. DiMaggio stated that she believes there will be enough left in the account to find other loans if requested. Cncl. Whiting stated that while the building does have some historic value,the restaurant business is tricky. He added that he agrees that the building needs rejuvenation. Mayor Tabke stated that the City would like to see this building restored. He added that this project could be considered four different projects at$25,000 each. Cncl. Lehman stated that he is not comfortable spending taxpayer dollars on multiple$100K projects, and that he is not in favor of these large projects. Ms. DiMaggio stated that the new business will bring new economic opportunities. Cncl. Whiting stated that he has concerns regarding parking. Moved by Brad Tabke,seconded by Jay Whiting to 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. Vote: 4- 1 Carried Opposed: Matt Lehman C. Approval of Contract for Private Development Including Business Subsudy Agreement for Amazon.com.dedc,LLC--Res.No. 15-6 Ms. DiMaggio requested approval of a Contract for Private Development Including Business Subsidy Agreement for Amazon.com.dedc,LLC--Res.No. 15-6. She stated that this contract will require Amazon.com.dedc,LLC to create a minimum of 40 jobs paying no less than $14.50/hour within the next two years. In exchange for these jobs,the City of Shakopee will provide Amazon.com.dedc,LLC with 123 Sewer Availability Charge Credits valued up to$305,000. Moved by Matt Lehman,seconded by Mike Luce Motion to approve Res.No. 15-6,A Resolution Approving Contract for Private Development with the City of Shakopee and Amazon.com.dedc,LLC for Certain Property in the City of Shakopee Vote: 5- 0 Carried 5. Adjourn to July 21,2015 Moved by Matt Lehman, seconded by Mike Luce to adjourn. r Vote: 5 -0 Carried ac-k f ' 1 Lori ensen Acting City C Heidi Emerson Recording Secretary General Business 4. A. SHAKo1'E E TO: Economic Development Authority FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 07/21/2015 SUBJECT: Commercial Exterior Improvement Program Loan -- Shelly's Boutique and Bridal Background The building owner and business owner/tenant of Shelly's Boutique and Bridal, located at 126 Lewis St. S. in downtown Shakopee, have requested 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: •New sign •Installation of new windows, brick, steeling (aluminum) molding and new door •Paint on the west (back) side of the building The total estimated project costs for the exterior improvements is $17,146.83. The second estimate received for project showed the total project costs being $20,361.72. The applicant is requesting a 5 year deferred/forgivable loan in the amount of$8,573.42. The previous owners/tenants of the building (Karizma) received a Facade Improvement Loan from the City in 2009 for $7,013.79. These funds were used to replace the roof and paint the building. The EDAC reviewed this request on Wednesday, July 8, 2015 and are recommending an award of$8,573.42. Action Sought If the EDA concurs, it should, by motion, approve a Commercial Exterior Improvement Loan in the recommended amount of$8,573.42. The EDA should also authorize the appropriate officials to enter into Repayment Agreement with Shelly's Boutique and Bridal, for the building located at 126 Lewis Street, 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 1 "'' AUTO PARTS. _ O S renovations to historic commercial properties.Awarding of loans is dependent upon availability of funding. LOAN FORGIVENESS i 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 �E .. The applicant has one year from the award date of the loan to complete •� FOR THE JOURNEY the project and request payment of loan funds.All loan funds will be ; i. °Paid upon receipt of paid invoices for the project and proof of payment. a ` 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): B;Nub rj,�er,.,►ersk"rc.tcn{+cnaA4, elk iii :A Icl�c�t (+A��.-f) �Co14 C fi?)f, f (ownfrr Telephone: ?r,„).-y-5-7-5003 Email: brii,( 6c��s +v5Jccru,tow. Mailing Address: I24w Lt ; a SrAS J City: �he ko(cC State: MN' Zip Code: SS-3 77 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: /2(. Lets 5+. s. Parcel ID #: %�-700 l L LO Age of the building: 7s umber of stories: .I- Is the building currently vacant?n YeaNo If yes, estimated length of vacancy: Business/Occupant Name: 31'1cIIS Po LAI G.« t 'Braactl Has this property previously received a facade grant? [ ]Yes No If yes,for how much,in what year and what were the funds used for? Zoo 9' 6'044- 42-r b iut' #6`_, t /bo /Vrf 4%, awee /P/`ru:uv3 O.JAei PROJECT INFORMATION ` J 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. From- Pw-;m1- ;•,� Estimated Total Cost of Proposed Rehabilitation Work: $ 13,9 7 + I r 2L O°-= + L 9 I , , 83 C.,11‘14(.83 Requested Loan Amount from the Program: $ ,5 7 3 41 Describe proposed improvements: ACt,a 5;5'm (ic r-.# S) PAI 4r0v46( 54wefc �rv4 BI:ck ) GJ litdoWSSfte I (I•n..:,,v_i 'ict t.4 New dOef 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. it1,-) CJ • 417. 11 Applicant Signature I Title Date 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 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 contractor(s). ��- ql.ci Applicant Signatur Title Date /10.* ACk 1p Co-Applicant i�gnature/Title Date COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351 •952-233-9300 • FAX 952-233-3801 •www.ShakopeeMN.gov ESTIMATE .,` .,• Rick FOX PAINTING CONTRACTOR a to INTERIOR•EXTERIOR•RESIDENTIAL•COMMERCIAL P.O.Box 63,Shakopee,MN 55379 Rick Fox Home:445-1036 Mobile: 612-723-6711 Date /-1 To /1C/7/1 �G/? ///7 .1 //7j: / I 4.4 r e /Jv/terr ,ll- -iiil/tel -s 'tF G;d 2 1/4&0 ‘ • 4z • • Page 1 of 1 Page(s) Proposal R W O'Brien Contracting, LLC 940 Bluebill Circle SHAKOPEE,MN 55379 612-916-5159 robrien5205(alvahoo.com Attention:Shelly Brinkhaus PROPOSAL SUBMITTED TO PHONE FAX Shell 952-277-9289 STREET JOB NAME 126 Lewis St.S. Store Front CITY,STATE AND ZIP CODE JOB LOCATION Shakopee,MN 55379 Same ARCHITECT DATE OF PLANS CITY,STATE AND ZIP CODE DATE N/A N/A 5/20/2015 Revised 6-22-2015 Demo Remove existing glass,framing and door Remove existing stone veneer Build back Infill aproximatly 2'of north window use rough sawn wood inside and paint to match Add 21'of lintle angle above windows and doors to carry new Stone Stone below and above windows and along side of windows Add 16 If of stone sill below windows furnish one 7'wide window and One 9'wide window Windows to have insulated low e glass Frames to dark bronze aluminum IFurnish one 3'x 7'aluminum door with 1'transom above Removal and disposal of all debris Permit included JDA:k a- 64 tc Alternate#1 Not included in basebid Pressure wash all the woo sl ind'tf g on the back,Prime and paint two coats ADD $1,900.00 We Propose hereby to furnish material and labor-complete in accordance with above specifications,for the sum of: Thirteen Thousand Nine Hundred Seventy-Five and no/100 dollars($ 131975.00 ). Payment to be made as follows: 30%down balance upon completion Nn aled&is guaranteed to be as specified N wodcto be coe,leted In a wodvneMe manner according to standard practices.Any alteration or deviation from above apedfice- Authorized Rob O' lions Involving extra costs be executed only won written orders,andwa become an Signature I J„(,• e G extra charge over end above the estimate.Al governante cmpgerd upon stales,accidents Title President or delays beyond eerconbcL Owner to cavy fire.tornado and other necessary kcsuence. Note: This proposal may be o rwcdcers are flay covered by Workmen's compensebon Insurance. withdrawn by us if not accepted within 30 days. Acceptance of Proposal-The above prices,specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be made as outlined above. Date of Acceptance: Signature sheNs Cream Raised 4 , ;i ' h .;.,, � • r� . i 1 L F . . . w r r d1q's , _ — — ={ .� Boutique & Bridal r.._ _* '4 t _. . E qM - ..: f'11 ( s i et_,, - 1-- .�..a . . .__..... fix.pvS '...'a'+h..m-_++.�.. .•i1",....i. liY*y„y;-r.,�. ;Dwelt j SIGN COMPANY m., M2-88E-3413 • www.dahlensign com .144_ .. , r .: ' ers installed ( stud mount ) permit si n� standard black $ 1 , 911 . rid painted magenta rmed plastic letters . Rtanriarri fnnt