HomeMy WebLinkAboutNovember 07, 2017 - EDA
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11/3/2017 8:47:03 AM
Date - Batch (Julian)
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Doc #
Project
Obj
BU
Remark
Description
Vend #
Total Amount
269,562.508,958.252.263,267.00560.002,000.00262,437.501,209.001,688.251,180.00
37,150.9510,998.7570,300.0050,677.8030,000.00
Ck Date
GL Date
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Check #
Date - Batch (Julian)
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Doc #
Project
Obj
BU
Remark
Description
GRAND TOTAL
Vend #
Total Amount
3,238.251,024.2546.990.001,627.50483.34
12,300.0029,358.76
798,071.35
Ck Date
GL Date
Check TotalCheck TotalCheck TotalCheck TotalCheck TotalCheck TotalCheck TotalCheck Total
Check #
City of Shakopee, Minnesota
Economic Development Authority for the City of Shakopee
FACADE IMPROVEMENT PROGRAM
For the purposes of this document,the term “City” includes the Shakopee City Council, staff, the Economic
Development Authority, advisory boards and commissions, financial consultants,andlegal counsel.
PURPOSE
The City of Shakopee’s Commercial Façade Improvement Program (FIP) provides financial
support through a deferred loan to commercial property owners and business owners in the
historic Downtown area and along Shakopee’s commercial corridors. The purposeof the FIP is
to support the revitalization of historic Downtown Shakopee and the City’s commercial areas by
stimulating private investment in high-quality improvements that enhance the appearance of
buildings and proprieties and eliminate blight and buildings that don’t meet current design
standards.
The Economic Development Authority for the City of Shakopee,using its housing and
redevelopment authority powers, created the Façade Improvement Program (FIP) in order to
eliminate or prevent blight.
The Cityreserves the right to approve or reject projects on a case-by-case basis, taking into
consideration established policies,project criteria, and demand ofCity services in relation to the
projects potential benefits. Meeting policy criteria does not guarantee the award of business
assistance to the project. Approval or denial of one project is not intended toset precedent for
approval or denial of another project.
The Citycan deviate from this policy for projects that supersede the objectives identified herein.
PROGRAM ELIGIBILTY
The Commercial Facade Improvement Program provides a one-time forgivableloan for eligible
façade improvements. Eligible applicants are owners of commercial properties or purchasers of
properties that have a contract on an eligible property that they will be renovating upon closing
on the property.
The intent of the FIP is to revitalize older commercial buildings within the City that are built prior
to 1980. Building renovations in the Downtown should adhere to the extent practicable to the
City of Shakopee Downtown Design Guidelines, 1999,to have the maximum impact.
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ELIGIBLE EXPENSES
For the purposes of this program, eligible expenditures shall include expenses related solely to
those exterior improvements that are eligible for the program, as outline in the program
guidelines and as determined bythe City. Expendituresexcluded are thoserelated to interior
improvements; ordinary repair and maintenance; improvements as a required as a result of a
code violation; or other expenses deemed ineligible by the City.
Eligible improvements include those items visible from the street, including: exterior
building improvements (cosmetic and/or structural); signage; lighting and landscaping.
Examples include, but are not limited to: exterior painting or surface treatment;
decorative awnings; window and/or door replacements or entrance modifications;
storefront replacements or enhancements; streetscape; outdoor patios and decks;
exterior wall lighting; restoration of architectural features. Landscaping expenses, when
part of a larger project, may be included but should not exceed more than 10% of the
total project costs.Fees for architects, engineers or other design professionals may
also be considered as part of the project costs.
Improvements or repairs that are required as a result of a violation or citation are not
eligible for funding through the FIP. However, improvements that are the result of
voluntary compliance and the applicant’s desire to bring a property into conformance
with the City’s current design standards will be considered.
Improvementswill be considered as part of a total project. For instance, if the applicant
proposes to replace the windows, the City may recommend that sills also be repairedor
replaced.
Site furnishings, amenities, non-permanent structures or improvements or movable
equipment are not eligible for funding through the FIP.
All improvements must obtain any required approvals and/or permits.
Any renovations that are solely the result of ordinary repair and maintenanceare not
eligible for funding through the FIP. Ordinary repair and maintenanceis defined as “any
work, the purpose and effect of which is to correct or prevent any deterioration or decay,
or damage to, a structure, site or any part thereof and to restore the structure or site, as
nearly practicable, to its condition prior to such deterioration, decay, or damage using
materials that are of a design, color and outer appearance as close as practicable to the
original.”Roofs will be considered under extenuatingcircumstances.
Exclusions to this clause maybe made when a new owner purchases a structure and is
renovating the structure and the deterioration has not been caused by the new owner or any
affiliate or agent.
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FUNDING
(1)The program provides a one-time forgivable loan for eligible expenses.These
improvementsmust bevisible from the exteriorand meet the eligible expense
requirements.
(2)The City may fund up toa maximum amount of50 %eligible project’scost. Loans
typically will not exceed $30,000. Larger amounts may be considered for critical or
keystone projects that have a larger impact on the community.,
(3)The term of the loan shall not exceed 20 years.Payments on the loan will be deferred
and will be forgiven if the applicant satisfies the terms of the loan agreement.
(4)Loan forgiveness takes place over a five-year period with 20 percent of the award
forgiven annually.The City may extend or reduce the repayment period based on the
dollar amount of the award.The table below should be used as a guideline:
Amount of AwardRepayment Period
Up to $30,0005 years
$30,001-$47,5007 years
$47,501-$65,00010 years
$65,001-$85,50015 years
$85,501-$100,00020 years
(5)If the benefiting building is sold within the period of the loan, the loan must be repaid.
The Citymay consider alternatives to immediate repayment, including but not limited to
transfer of the loan to a new owner or a mutually agreeable loan repayment schedule.
(6)The applicant has one year from the award dateof the loanto complete the project and
request payment of loan funds.All loan funds will be paid to an applicant uponreceipt of
evidence of paid invoicesfor the projectalong with a release of any and all mechanics or
contractors liens.
(7)The applicant must maintain the property during the repayment period. Failure to do so
may cause the loan to become payable in full.
(8)The maximum loan at any one time is $30,000. Any revisions to the loan may require an
extension to the repayment period. A façade improvement loan may be applied for every
five years that rolls with the total amount of $30,000. E.g.: A project borrows $15,000 in
year one, and in year three, they request another $15,000. The total amount of $30,000
would have a new five-year repayment period.
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APPLICATION PROCESS
(1)Applications must be submitted by the property owner(s) or the building tenant in
conjunction with the owner(s).Theapplicationshall become the property of the City
and/or EDA and is subject to Minnesota Statutes,Chapter 13 (the Government Data
Practices Statute).
(2)Loan recipients are required to seek at least two bids for all projects. It is assumed that
the contractor who submits lowest bidwill be hired to complete the improvementsunless
mitigating circumstances exist.
(3)Funds for this program are limited and will be awarded to qualifying applicants on a first-
come, first-servedbasis.
(4)City staff shall review the application materials and make a preliminary recommendation
regarding the completeness of the application and whether the application meets the
criteria outlined in thispolicy.
(5)In theevent that the EDA Board concurswith the recommendation above, the EDA
Board will grantfinal approval or denial of the loan.
REPORTING REQUIREMENTS
Loans that are less than $75,000 are not subject to reporting under Regulating Local and
State Business Subsidies, Minnesota Statute 116J.994.
Loan amounts above $75,000 are considered financial assistance under Regulating
Local and State Business Subsidies, Minnesota Statute 116J.994, and should be
reported on the Minnesota Financial Assistance Form for Non-JOBZ Projects.
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