HomeMy WebLinkAbout6.A. Downtown Facade Improvement Program
City of Shakopee b~
Memorandum
TO: Economic Development Authority
FROM: Kris Wilson, Assistant to the City Administrator
SUBJECT: Downtown Fayade Improvement Program
DATE: April 12,2006
Introduction
At its November I meeting, the EDA approved guidelines for a Downtown Fa<;ade Improvement
Program. The guidelines adopted were those recommended by the Economic Development
Advisory Committee and the Historic Preservation Advisory Committee. The staff memo
prepared for that meeting is attached. . Recently a Councilmember asked that the EDA revisit this
issue, with particular attention to the issue of which properties are eligible.
Background
As approved by the EDA on November 1, the program is limited to commercial properties in the
core downtown area - the south side of 1 st Ave. from Fuller to Somerville St. and buildings
fronting Holmes, Lewis and Sommerville between 1 stand 2nd Ave. If funds remain after
September 1, the program will be expanded to the entire 1 st Ave. corridor.
Previous grant/loan programs have also targeted this area of the city, and this had led to
criticisms that the City is excluding other areas of the city in need of revitalization assistance.
This is the issue that the EDA is asked to revisit.
There are two reasons for targeting the core downtown area:
1. This area includes a concentrated number of historic commercial buildings that are a
fundamental part of Shako pee's history and identity as an old river town. Focusing
revitalization efforts in this concentrated area can result in a more visible impact and
the preservation of historic buildings that cannot be replaced.
2. Several years ago the City hired a consultant to prepare design guidelines for the
restoration of commercial buildings in the core downtown. These guidelines provide
a clear understanding of the types of improvements the city is willing to fund. We do
not have any design guidelines for buildings along the broader 1 stAve. corridor.
On the other hand, there are properties along I st Ave. to the east and west of the core downtown
area that are in need of revitalization as well.
It should be noted that the City does have money to make deferred loans to residential properties
in a broader area of the city. These are funds that were originally granted to the City as part of
the state's Small Cities Development Program, loaned out to qualifying property owners and
have now been repaid to the City by owners selling their property before the end of the
deferment period. At this time, approximately $46,000 is available in this fund. This includes
residences along Bluff, 1 st and 2nd Ave to Naumkeag St. on the East and along 1 st Ave. to Clay
St. on the West.
Attached for your information are draft copies of the promotional materials developed for the
Downtown Fayade Improvement Program. We had not yet mailed these materials due to some
questions regarding the application form that required our attorneys' review.
Action Requested: The EDA is asked to discuss whether to proceed with the program targeted
at the core downtown area or to adjustthe eligibility requirements to include a larger portion of
the City and provide direction to staff.
City of Shakopee
Memorandum
TO: Economic Development Authority
FROM: Kris Wilson, Assistant to the City Administrator
SUBJECT:. Downtown Fac;:ade Improvement Program
DATE: October 25, 2005
The 200S. EDA budget includes $50,000 for a Downtown Fac;ade Improvement Program.
Input on the appropriate terms for the program was sought from the Economic
Development Advisory Committee, the Historic Preservation Advisory Commission and
the Shakopee Downtown Partnership.
Based on the input received from these groups, it is suggested that the program be
stmctured.as follows:
1. A deferred loan program where the loan would be forgiven on a sliding scale over
a five-year period if the property owner does not sell the property during that
time.
2. The maximum loan amolint would be 50 percent ofthe cost of the improvement,
up to a maximum of $25,000 per property. While this might result in only two
loans being made, all three groups consulted felt it was better to get the money out
there and have a visible impact on just a few buildings, rather than spreading it
too thin or setting the maximum so low that it fails to provide the desired
incentive.
3. Initially, eligible properties would be those located within the boundaries of the
city's Commercial Historic Downtown, as identified in the City of Shakopee
Downtown Design Guidelines. If, by September 1, 2006, the EDA has not
received enough qualified applications from property owners in the above
geographic area to expend the allocated funds, commercial properties along the 1 sl
Ave. corridor would become eligible to apply.
4. Preference would be given to those properties that did not receive assistance
through Shakopee's Small Cities Development Program (SCDP) grant.
5. In order to be eligible, the improvement would have to be to a street-facing fac;ade
and would have to be a restoration or enhancement project; not regular
maintenance. Improvements would be required to follow the guidelines contained
in the City of Shakopee Downtown Design Guidelines.
6. Applications would be reviewed by a committee composed of one member from
each of the following groups: the Economic Development Advisory Commission,
the Historic Preservation Advisory Commission, and the Board of the Shakopee
Downtown Partnership. The committee's recommendations would be forwarded
to the ShakopeeEconomic Development Authority for final action.
Budget Impact:
The 2005 EDA budget includes $50,000 to fund this program.
Recommendation:
Staff recommends that Council approve the Downtown Far;ade Improvement Program
with the terms outlined above and authorize staffto begin marketing the program to
eligible property owners and occupants.
Kris Wilson
Assistant to the City Administrator
...,.
OFFICIAL PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
SHAKOPEE,MINNESOTA
REGULAR SESSION
NOVEMBER 1, 2005
Members Present: Helkamp, Joos, Lehman, Schmitt and President Menden
Members Absent: None
Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant to the
CityAdministrator; Judith S. Cox, City Clerk; Jim Thomson, City
Attorney; R. Michael Leek, Community Development Director;
and Bruce Loney, Public Works Director/City Engineer
I. Roll Call
President Menden called the meeting to order at 7:38 p.m. Roll call was
taken as noted above.
II. Approval of the A2:enda
Cncl. Lehman requested that item 6, Utilization of Remaining Small Cities Development
Program Funds, be deleted from the Consent Agenda and added'as a regular agenda item.
Joos/Schmitt moved to approve the Agenda as amended. Motion carried 5-0.
III. Approval of Consent Business
Items under the Consent Agenda were:
Item No.4: Approval of the Minutes ofthe October 4,2005 meeting.
Item No.5: Approval of Bills in the amount of$247.85.
Joos/Schmitt moved to approve the Consent Agenda. Motion carried 5-0.
IV. Approval. of Minutes
Action was taken under the Consent Agenda.
V. Approval of Bills
Action was taken under the Consent Agenda.
VI. Utilization of Remainin2: Small Cities Development Pro2:ram Funds
Kris Wilson informed the Council that there have been several commercial and
residential property owners who had received deferred loans from the City, through the
Small Cities Development Program. There was a condition placed on receiving the loans
in that the owners were required to retain their properties for a period of seven years. If
the owners sold their properties before the seven year period had elap'sed, the loan
amount would be prorated and the prorated amount would be repaid. To date, the City of
Shakopee has received approximately $29,000 in repayments.
." ~'-.
Official Proceedings of the November 1, 2005
Economic Development Authority Page -2-
Staff recommends funds be made available as additional loans under the same parameters
as the previous loan program.
Ms. Wilson stated that an alternative would be to make an application to the State to the
Department of Employment and Economic Development to utilize the repaid funds to the
City and present its proposition. If Council opts for this alternative the City would be
required to present a proposal showing the alternative meets at least one of the major
goals of the program.
Cncl. Lehman asked if the money could be used as matching funds with the Downtown
Partnership and perhaps use the money for the downtown corridor. Ms. Wilson answered
that there is the possibility of using the money as a match.
Joos/Schmitt moved to authorize the use ofthe Small Cities Development Program fund
balance to make additional deferred loans to qualifying property owners under the terms
and conditions applied to the original program. Motion carried 5-0.
VIT. Downtown Facade Improvement Pro2ram
The improvement program was budgeted in the 2005 EDA budget. Ms. Wilson stated
that she gathered input from the Economic Development Advisory Committee, the
Historic Preservation Commission and the Shakopee DowntownPartnership.
Based on input received, the recommended program should consist of a deferred loan
program where the loan would be forgiven on a sliding scale over a five-year period if the
property owner doesn't sell the property during that time. Eligible applicants would be
owners of historic downtown properties along First Avenue between Fuller and Spencer.
The maximum loan amount would be 50% of the total project cost with a maximum
$25,000.
Cncl. Lehman commented that it's unfortunate that it's only the First Avenue properties
being targeted and it doesn't make sense to limit the eligibility of funds to only one area.
He added that he would prefer it available to the entire corridor. Ms. Wilson responded
that it would be at the discretion ofthe EDA and that the funds would be available to
target area through September 2006. After September 2006, any remaining funds would
be offered to property owners outside the target area.
R. Michael Leek noted that there was a fayade grant program when he was first employed
by the City but there were no coherent guidelines. He suggested that in the future it
would be a good idea for the Council to give serious thought as to what type of
improvements the City would like to support outside the downtown area.
end Lehman noted if the money isn't used for the entire corridor, the upgraded
properties would make the other properties look blighted by comparison.
Official Proceedings of the November 1, 2005
Economic Development Authority Page -3-
Ioos/Schmitt moved to approve the Downtown Fac;ade Improvement Program with the
terms outlined in Kris Wilson's memo dated October 25,2005, and authorize staff to
begin marketing the program to eligible property owners and occupants. Motion carried
4-1 ; Cncl. Lehman dissented.
President Menden complimented Ms. Wilson on her presentation at the meeting as well
as the outstanding work she had completed on behalf of the EDA.
VIII. Other Business
None
IX. Adjourn
Schmitt/Helkarnpmotioned to adjourn the meeting. Motion carried 5-0 and the meeting
of the EDA was adjourned at 8:00 p.m.
J4d.0;6
(tili &.Cox .
EDA Secretary
City Clerk
Andrea Bortness
Recording Secretary
February 24,2006
Name.
Street Address
Shakopee, MN 55379
Dear
We all know first impressions are important. The exterior of the historic buildings along
Shakopee's 1 st Ave. corridor playa significant role in creating the first impression many
visitors get when they arrive in Shakopee and when prospective customers approach your
business or building.
The City of Shakopee wants to partner with you and other downtown businesses and
property owners to invest in projects that restore or enhance the exterior fac;ades of
commercial buildings in our historic downtown and First A venue area. Toward this end,
the City has a new Downtown Fac;ade Improvement Program which provides deferred
loans to cover up to 50 percent of the costs of eligible improvements, up to a maximum
of $25,000 per property.
Under the tenns of these loans, if the property is retained by its current oWller for a period
of five years, the loan is completely forgiven. In cases where the building issold, the
owner would only be required to repay a prorated share of the loan, depending on how
many years had passed.
Enclosed you will find a brochure with additional information about the loan program, as
well as an application form.. We encourage you to review thi~ information and see if the
Downtown Fac;ade Improvement Program could help you with a project you've been
considering.
If you have any questions or would liketo discuss how this program could assist you,
please feel free to Contact me at (952) 233 - 9312 or kwilson@ci.shakopee.mn.us;
Sincerely,
Kris Wilson
Assistant to the City Administrator
Downtown Shakopee Eligible Improvements
The City of Shako pee is proud of its historic Projects that restore or enhance a street-
downtown and would like to encourage prop- facing favade and meet the standards estab-
erty owners to maintain and invest in their lished in the "Downtown Shakopee Design
CITY of SHAKOPEE propeliies in order to preserve downtown Sha- Guidelines." Examples include:
kopee as a profitable business district and at-
tractive community destination for years to . Restoration or Replacement of Win-
come. dows & Doors
DOWNTOWN . Removal of Vinyl Siding, Aliificial
At the same time, the City understands that Blick or other modem coverings
FA~ADE restoring and improving historic buildings is . Restorationand Repair of Brick Fa-
often expensive given the materials and crafts- eades, Wooden Trim and Moldings
IMPROVEMENT manship involved. . Purchase of New Awnings or Signage
PROGRAM That is why the City of Shako pee is making To Apply
deferred loans available through its Downtown Application matelials, including copies of
Favade Improvement Program. the "Downtown Shako pee Design Guide-
lines, " are available online at:
DefelTed Loans for the Deferred Loans
Restoration and Enhancement of . Through the City's Economic Development www.cLshalmpee.mn.us
Shakopee's Downtown AuthOlity, Shakopee is offering deferred loans
Commercial District to fund up to 50 percent of the costs of a resto- Interested propeliy owners are encouraged to
ration or enhancement project, up to a maxi- apply now. There is no application deadline;
mum of$25,000 per property. The loans are however, funds are limited and will be
forgiven on a sliding-scale over a five-year pe.. awarded to qualifying applicants on a first-
riod if the property owner does not sell the come, first-serve basis. Program funding
property during that time. will be made available to other portions of
~ Eligible Properties t~e city ifnot utilized within the downtown
core by September 1,2006.
The loan program is open to commercial prop-
SIii\KOPEE eliies in Shakopee's histOlic downtown com- For more information, please contact:
CI.\\,I.\lUNrfY Pll.iDI' SfhO, 1.57 mercial area (see map on reverse). This in-
cludes prope11ies that are commercial on the Kris Wilson,
first floor and residential on the upper floors. Assistant to the City Administrator
City of Shakopee
Eligible Applicants 129 S. Holmes St., Shakopee, MN 55379
Applications must be submitted by the prop- (952) 233-9312 / kwilson@ci.shakopee.mn.us
edy owner(s), or the owner(s) and tenant to-
gether.
Downtowll Shakopee
Properties in the shaded area are eligible to apply for
funding through the Downtown Fayade Improvement Program.
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CITY OF SHAKOPEE
Downtown Fa~ade Improvement Program
Application for Deferred Loan
I. Applicant Information
Name of Applicant Date of Birth
Name of Co-Applicant Date of Birth
Tax ID # (if applicable)
Address
Street City State Zip
Telephone # L-) (-)
Home Work
II. Property Information
Address of Building to be Rehabbed
Contact Person Telephone #:
Age of Building Number of Stories
Estimated Market Value Current Annual Property Taxes
Gross area of building sq. ft. (exclude non-habitable space such as attics,
basements, etc.)
Gross area of non -residential space (include commercial, office, etc.)
Existing building us~:
Proposed building use:
III. Ownership Information
Ownership Interest in property to be improved: .
o Contract for Deed 0 Title "Free and Clear" o Mortgage
.0 Other: Specify:
Name(s) on Title: Specify ownership interest of each individual named on the title Uoint,
tenants-in-common, life estate, partnerships, corporations, etc):
Amountof outstanding principal owed on building: $
Please attach a copy of the most recent Properly Tax Statement from the County
Assessor's Office and Proof of Insurance on the building.
IV. Estimated Rehabilitation Costs and Requested Loan Information
Please describe proposed improvements: (If necessary, please attach additional
pages, including any plan drawing,contractors' bids or proposals obtained by the
applicant. Please itemize costs whenpossible.)
Estimated Total Cost of Proposed Rehabilitation Work: $
Requested Loan Amount from Small Cities Program;.... Loan amount may be up to
50% of the total construction costs, with a maximum of $25,000.
$
Source of Remaining Funds
o Personal Savings o Private-Sector Loan (Institution: )
o Other: (please specify)
Building Permits & Inspections
Applicant is 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.
Loan Disbursement
Awarded loan fund~ will be dispersed to the applicant upon submittal of receipts or
invoices for supplies purchased and work completed.
V. Certification
City staff or an authorized representative shall have the right to inspect the property to
be improved at any time from the date of application upon giving due notice to the
owner and to occupants.
l!We certify that all statements on this application are true and correct to the best of
my/our knowledge. l!We understand that any intentional misstatements will be grounds
for disqualification.
l!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.
l!We further understand that IIwe 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
myself and the contractor( s). The administering agency will not be liable for the
inadequate performance of the contractor(s)~
Applicant Date
~
Co-Applicant Date
DATA PRACTICES ACT
The following notice is provided for those applicants for the Shakopee Downtown Fa~ade
Improvement Program that are individuals. The following does not apply in cases where the
applicant is a non-individual, such as a corporation.
(TEN NESSEN WARNING)
In accordance with the Minnesota Governrnent Practices Act, the City of Shakopee is required to inform you
of your rights as they pertain to tha.private information collected from you. Private data is that information which is
available to you, but not to the public. The personal information we collect about you is private; however, your name.
address. and the amount or value of the aDDroved loan funds are Dublic.
The information collected from you or from other agencies or individuals authorized by you is used to
determine your eligibility for the Downtown Fac;:ade Improvement Program.
The dissemination and use of the private data we collect is limited to that necessary for the administration
and management of the Downtown Fac;:ade Improvement Program. Persons or agencies with whom this information
may be shared include:
1. City of Shakopee personnel administering the Downtown Fac;:ade Improvement Program.
2. Individuals charged by the city with reviewing applications and making recommendations to the Shakopee EDA.
3. Members of the Shakopee ECQnomic Development Authority (only that information needed to approve the
application for loan funds and/or payments to contractors).
4. Federal, State, County, local and contracted auditors.
5. The contract for deed holder (only that you are a loan recipient and the amount of the loan).
6. Law enforcement personnel in the cases of suspected fraud.
7. Those individuals or agencies to whom you give your express written permission.
Unless otherwise authoi-ized by State statute or Federal law, other government agencies utilizing the reported private
data must also treat the information as private.
You may wish to exercise your rights as contained in the Minnesota Government Data Practices ACT. The rights
include:
1. The rightsto see and obtain copies of the data maintained on you,
2. To be told the contents and meaning of the data and,
3. To contest the accuracy and completeness of the data.
To exercise these rights contact: Kris Wilson, City of Shakopee, (952) 233-9312.
I have read and understood the above information regarding my rights as a subject of government data.
Date Applicant Co-Applicant