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Home My WebLink About6. Facade Improvement Loan Reimbursement for KarizmaCITY 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 Karizma MEETING DATE: August 17, 2010 INTRODUCTION: On December 15, 2009, the EDA approved a facade improvement loan request by Tania Richter and Adam Dedeker, Dedeker-Richter, LLC, for renovation of the building located at 126 Lewis Street South (Karizma). Since that approval, the applicant has completed the proposed improvements consistent with the request; therefore, they are requesting reimbursement for the improvements to the Karizma 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 installing signage and an awning on the front of the building and repairing/replacing shingles of the Karizma building. These improvements totaled $14,202.58, with the amount of the approved loan not to exceed $7,013.79. (The original cost for improvements was $14,027.58, which is the amount the loan was based on - the cost of the shingle repair/replace was $175.00 higher than what the EDA had approved in the agreement). ALTERNATIVES: 1. Offer and pass a motion directing staff to reimburse Dedeker-Richter, LLC, 126 Lewis Street South, an amount of $7,013.79, 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 Dedeker-Richter, LLC, 126 Lewis Street South, an amount of $7,013.79, consistent with the loan agreement for this facade improvement. R. Michael Leek Community Development Director H:\CC\2010\0817\EDA Karizma reimbursement.docx Jul 30 10 01;49p Tania Richter 6122500352 ~~ ~,~ V.~.f'~~L-...--. CENTRAL EXTERIORS INC 3465 WESTRIDGE DR SHAKOPEE, MN 55379 612-363-0990 'TWEKRYANra~CUMCAST.NET CENTRALEXTERIORSIINC.COI~'I HOME OVi,'NER ADAM & TO~iYA ADDRESS 6710 RUSTIC ROAD CITY PRIOR LAKE . STATE MN 55372 PRODUCT QTY PRICE TOTAL 1. Re roof mono roof in rear of building 1 1,725.00 1.725.00 2. Permif 3. Dempster 4. GAF. Grand Seq 5. Felt paper 6. Ice & water shield 7. 8. Valley metal : Grand starter strip _ C ~~ l~ • 9. Spray paint metal roof edging (black) ~ ~ ~G~ ~ ~~ _ TOTAL $1,725.00 iC~''c~'-~ V p.2 Signature Graphics 371 Ervin Industral Drive Suite B Jordan MN 55352 Phone 952-492-5699 Fax 952-378-1071 www.signaturetribune.com Bill To Karizma 126 Lewis Street Shakopee MN 55379 Description Exterior Awning System -Mansard - 22'w x 4'h x 45"proj - 6" valance - No lights - No graphics - Fabric - Sunbrella acrylic substrate (black), 10 yr Ilimted warranty - Frame - 1"welded alum tube -Removed existing awning & installed new awning on 12/29/09 Please make checks payable to: Signature Graphics We accept Visa, MC & Amex Thank you for your business! Invoice Date Invoice # 12/29/2009 2820 P.O. No. Terms Job # Tanya PAID 3390 Qty Rate Amount 1 8,479.79 8,479.79 SUbtOtal $8,479.79 Sales Tax (6.8750 $o.oo Total $8,479.79 Payments $-8,479.79 Balance Due $o.oo Signature Graphics 371 Ervin Industral Drive Suite B Jordan MN 55352 Phone 952-492-5699 Fax 952-378-1071 www.sighaturetribune.com Bill To Karizma 126 Lewis Street Shakopee MN 55379 P.O. No Tanya Description Custom Dimensional Sign: -Application: Bayonet sign (two-sided) -sandblasted & carved sign w/ crushed glass background -Text/graphics: Company name 8~ logo -Size: i 2 sq ft -Color: Black, turquoise & pink - install date: 7/21/10 Please make checks payable to: Sianature Graphics We accept Visa, MC & Amex Thank you for your business! Invoice Date Invoice # 2/26/2010 2855 Terms Job # PAID .3390 Qty Rate Amount 1 3,997.79 3,997.79 SUbtOtal $3,997.79 Sales Tax (6.8750 $o.oo Total $3,997.79 Payments $-3,997.79 Balance Due $o.oo ~, ~ 5 ~^erehy certify the within Mortgage exempt from pay;;~~cnt of Registry Tax, //~~ ~~~lJ County Auditor G Doc. No. A 848005 OFFICE OF THE COUNTY RECORDER ~~ SCOTT COUNTY, MINNESOTA ~~ _ Certified Fled and/or Recorded on ~.... ~--' 02-26-2010 at 11:00 Receipt:102041 ~~ Janice From, Acting County Recorder o1 Fee: ~ 46.00 Repayment Agreement Shakopee Downtown Facade Improvement Program THIS AGREEMENT, made and entered into this ~ ~`~ day of , 20tD by and between Tania Richter and Adam Dedeker, Dedeker-Richter, LL a Limited ~ bility Company (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 $7,013.79. 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 installing signage and an awning on the front of the building, and repairing/replacing shingles, in a color/design to be approved by the city, for the building located at 126 Lewis Street South 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 Eater 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 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 Tien 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 126 Lewis Street South, Shakopee, MN and is legally described as: .~~~'~I ~ Una North 40 feet of Lot 4 and the South 22 feel of the North 40 feet of Lot 5 -Block 23 CITY vnncr_ n__as n---_:. - ..---.- _ _ -`- _ .. .. -- in 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 fail 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 shah 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. Tania Richter Economic Development Authority for the City of Shakopee President Its _C~ ~1~~ By Executive Director Adam Dedeker By Its STATE OF MINNESOTA ) SS, COUNTY OF SCOTT l~ The foregoing instrument was acknowledged before me this ,~~"day of ~ , 2010, by Tania Richter and Adam STATE OF MINNESOTA ) ss COUNTY OF SCOTT ) Dedeker, Dedeker-Richter, LLC a Limited Liability Company. SEAL City le k, City of Shakopee, Sc County, MN Eic ffi¢io Notary Public, Minn. Stat. 358.15 The foregoi instru ent was acknowledged .before me this~~=day of , 20~„p, by ~ ..~ - ,President of the Economic Developmer Authority of the City of Shakopee, Min sota, on behalf of the Economic Development Authority. JEANETTE M.SHANER Notary Pub~t~Ainne~ota ~b Oanminton E~iros.Mn st. ~otb N ary Public My Commission Expires:~L~~/ rj STATE OF MINNESOTA ) ss COUNTY OF SCOTT ) vd The foregoing instrument was acknowledged. before me this ~3 day of rs,[. , 201', by i;M~.~is ~~C.(~e.ifl ,Executive Director of the Economic Development Authority of the City of Shakopee, Minnesota, on behalf of the Economic Development Authority. nnivnnn~. ~ CARMELA R. NASCENE Notary Public-Minnesota `3;;a~ My Commission Expires Jan 31, 2015 Notary Public ' My Commission Expires: i'3f d:~i~~ 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