HomeMy WebLinkAbout5. Facade Improvement Loan Reimbursement for Hennen's Shell~, ~ ~ ~/
CITY OF SHAKOPEE
Memorandum
CASE NO.: NA
TO: Economic Development Authority
Mark McNeill, Executive Director
FROM: R. Michael Leek, Community Development Director
SUBJECT: Request for Reimbursement of Facade Improvement Loan for Hennen's Shell
MEETING DATE: August 17, 2010
INTRODUCTION:
On December 15, 2009, the EDA approved a facade improvement loan request by john and Mary
Hennen for renovation of the Hennen's Shell building, located at 807 1St Avenue East. Since that
approval, the applicant has completed the proposed improvements consistent with the request;
therefore, they are requesting reimbursement for the improvements to the Hennen's Shell building,
consistent with the Repayment Agreement for the Shakopee Downtown Facade Improvement
Program.
DISCUSSION:
The improvements approved by the EDA as part of this project included stuccoing and finishing the
building exterior of the Hennen's Shell building. These improvements totaled $11,163.00, with the
amount of the approved loan not to exceed $5,581.50.
ALTERNATIVES:
1. Offer and pass a motion directing staff to reimburse John and Mary Hennen, Hennen's Shell at
807 1st Avenue East, an amount of $5,581.50, consistent with the loan agreement for this facade
improvement.
2. Table the request for additional information.
ACTION REQUESTED:
Offer and pass a motion directing staff to reimburse John and Mary Hennen, Hennen's Shell at 807
1St Avenue East, an amount of $5,581.50, consistent with the loan agreement for this facade
improvement.
R. Michael Leek
Community Development Director
H:\CC\2010\0817\EDA Hennen's reimbursement.docx
~~IERG~~S C0~`~tS~'R~'~~N, ~~~.
LIC. # 20135258
P. O. Box 344
SHAKOPEE, MN. 55379
PN.952-445-4624
FAIT 952-496-1528
Invoice
Hennen's Shell
807 1St Aveune
Shakopee, Mn. 55379
RE: Station exterior refinish
Date: 08/04/2010
Replace overhead garage door frames with metal clad jambs and vynil stops $ 1,923.00
Stucco all area's that are presently painted white block and apply an acrylic finish coat in the
color of your choosing.
Total estimate for above items is
$ 11,163.00
$ 13,086.00
If removal and replacement of signs and etc. is wanted , it will billed at a time and material basis
n/a
Juergens Construction Inc.
Gene F. Juergens
Doc. No. A 848004 ~Lli~s'
' OFFICE OF THE COUNTY RECORDER
~~. SCOTT COUNTY, MINNESOTA
~.
~~ Certified Fited and/or Recorded an
~ hereby certify the within Mortgage ~'~'~
exempt from pay ent o[' Reistry Tax, ~~
o, cou~,ty A,~;t~r --- 02-26-2010 at 11:00 Receipt:102040
~ Janice From, Acting County Recorder o~
Fee: $ 46.00
Repayment Agreement
ShakopeeDowntown Facade Improvement Program
THIS AGREEMENT, made and entered into this ~~ day of p ~~~ , 20 td by and
between John E. and Mary L. Hennen, husband and wife (hereinafter referred to as "Owners"),
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 15th day of December, 2009, hereinafter referred to as the "effective date."
The Lender agreed to grant to the Owners a Deferred Payment Loan, hereinafter referred as
"Deferred Loan," relating to the real estate hereinafter described, in the amount of $5,581.50.
NOW THEREFORE, in consideration of the said Deferred Loan, the parties do hereby agree as
follows:
1. That the Owners promise to use the proceeds of the Deferred Loan for the purposes of
purchasing and adhering stucco to all areas of the building that are presently painted
white block-and apply an acrylic finish coat, in a color to be approved by the city, for the
building located at 807 First Avenue East in the City of Shakopee, Minnesota.
2. That if the Owners sell, transfer or otherwise convey the real estate hereinafter
described, within a period of five (5) years from the effective date of the Deferred Loan (to
wit, December 15, 2014), the Owners 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 December 15, 2014 that the sale occurs. For example, if the Owners sell the real
estate hereinafter described in June, 2012, the Owners must pay Lender fifty percent
(50%) 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 Eater date or dates as the Lender, in
its sole discretion, may designate.
3. ~ That as security for the Owners' obligation of repayment, and subject to the terms and
conditions of this Agreement, the Owners hereby grant, 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 lieh is situated in Scott County,
Minnesota, is located at 807 First Avenue East; Shakopee,'MN`ahd is legally desccited
as:
Lot 7, Lot 2, the West 30 feet of Lot 3 and -that part of the adjacent vacated alley Block
9, EAST SHAKOPEE. Scott County Minnesota according to the plat on file and of record in the
Office of the Register of Deeds in and for said county and state
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), the Owners or their heirs, executors, or representatives shall give the
Lender notice thereof.
5. In the event the Owners or their heirs, executors or representatives shall fait or refuse to
make a required repayment within said limited period, the Lender may, with or without
notice to the Owners, 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 December 15, 2014 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. .
fN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
` written above.
Jo
By
Economic Development Authority for the City of
Shakopee
President
By ~~ ." ~ V V~.~
Executive Director
Mary L. Hennen