HomeMy WebLinkAbout3.b. Request of Hennen's Shell Auto Center for Downtown and First Avenue Corridor Commercial Site Improvement Loan ProgramCITY OF SHAKOPEE
Memorandum
CASE NO.:
NA
TO:
Economic Development Authority
Mark McNeill, Executive Director
FROM:
R. Michael Leek, Community Development Director
SUBJECT:
Request of Hermen's Shell Auto Center for Downtown and First Avenue Corridor
Commercial Site Improvement Loan Program (DFACCSILP) funding for interior
office remodeling for the property at 807 1st Avenue East.
MEETING DATE:
June 21, 2011
INTRODUCTION/DISCUSSION:
The City received the attached application for a loan under the Downtown and First Avenue Corridor Fagade
Improvement Loan Program. Hennen's Shell Auto Center is proposing to remodel the office area of their
building. The request included a number of proposed improvements, as noted below:
1. Electrical: $9,850.00
2. Plumbing: $16,155.00
3. New Flooring: $12,500.00
4. Shelving, Coolers: $10,900.00
5. Counter, Counter top: $18,500.00
6. Camera system: $5,922.00
7. Door, Windows: $4,164.00
8. Framing, Finish work: $8,500.00
9. Concrete Work (me. hdcp. ramp): $5,000.00
10, Insulation: $1,500.00
11. Painting: $1,500.00
Total: $94,491.00
The EDA recently recommended that the loan program be expanded to include interior work, as well as other
site improvements. The EDA is asked to direct staff whether to prepare a loan agreement for the subject
project. In this case, 50% of the total project cost would equal $47,245.50. The total maximum for any one
loan is $25,000.00, however, at this time there is a balance of $20,080.00. Thus, if the EDA wished to
approve the maximum loan for this project it would need to also direct staff to transfer funds from one of the
other EDA funds.
Also, if the EDA approves the present request, it would deplete this loan fund, and the EDA should provide
direction as to whether to transfer any additional funds from other EDA accounts. If this is not done, staff
will not actively market the loan program unless and until the program is replenished.
RELATIONSHIP TO CITY GOALS:
This item relates to Goal B. Positively manage the challenges and opportunities presented by growth,
development and change.
ALTERNATIVES:
1. Offer and pass a motion to allow improvements to Hennen's Shell as noted above, as part of the
Downtown and First Avenue Corridor Commercial Site Improvement Loan Program, and direct staff to
H: \CC\2011 \06 -21 \EDA Hennens Shell rev06132011.docx 1
prepare a loan agreement for building interior improvements not to exceed $25,000.00 for Hennen's
Shell Auto Center at 807 1 st Avenue East.
2. Offer and pass a motion to allow improvements to Hetmen's Shell as noted above, as part of the
Downtown and First Avenue Corridor Commercial Site Improvement Loan Program, and direct staff to
prepare a loan agreement for building interior improvements not to exceed an alternative amount for
Hennen's Shell Auto Center at 807 1 st Avenue East.
3. In the event the EDA approves a $25,000.00 for interior improvements to Hennen's Shell, direct staff to
make an interfund transfer to cover the loan above the current fund balance of $20,080.
4. Offer a motion to direct staff to transfer additional funds to the loan program to cover future possible
loan requests.
5. Deny the request for Downtown and Fist Avenue Corridor Fagade Improvement Loan funds.
6. Table the request for additional information.
ACTION REQUESTED:
Council is asked to take the following actions;
• Offer and pass a motion to allow improvements to Hennen's Shell as noted above, as part of the
Downtown and First Avenue Corridor Commercial Site Improvement Loan Program, and direct staff
to prepare a loan agreement for building interior improvements not to exceed $25,000.00 for
Hennen's Shell Auto Center at 807 1st Avenue East.
• Direct staff to make an interfund transfer to cover the loan above the current fund balance of
$20,080.
• In the event that the EDA wishes to replenish the loan fund, direct staff to transfer additional funds to
the loan program to cover future possible loan requests.
o
R. Michael Leek
Community Development Director
H: \CC \2011 \06 -21 \EDA Hennens Shell rev06132011.docx 2
Applicant Information
Name of Applicant 'a # / -/ G"Al r,� r _ Date of Birth / o -/ 3 - /V f`
Name of Co- Applicant Date of Birth
Tax ID # (if applicable)
Address S 6 `7 7 6 - _r S V9 _ 5 / /t /! O f �, ^_/- � 5 3 7V
Street City State Zip
Telephone # &L4 Z/ 2 5, Zf-.-
Home Work
Property Information
Address of Building to be Rehabbed X 7 'r. /_C /' v
Contact Person Fo ,� /_ l'r IyHl w Telephone #: 4 5t., z - ZG%3 - -2 Y ;;�P
Age of Building -, /L-B
Estimated Market Value 0 007
Number of Stories /
Current Annual Property Taxes 4 /°i i 3/00
Gross area of building q 0l-/ sq. ft. (exclude non - habitable space such as attics,
basements, etc.)
Gross area of non - residential space (include commercial, office, etc.)
Existing building use: S� -`12 jz-re.9 1 e/9 '7`. - z �r - rV G i_6 J ti /Z L �
Proposed building use: t, - s , � - i"o ) 9 /1G ? x
II. Ownership Information
Ownership Interest in property to be improved:
❑ Contract for Deed ,Title "Free and Clear' ❑ Mortgage
❑ Other: Specify:
Name(s) on Title: Specify ownership interest of each individual named on the title (joint,
tenants -in- common, life estate, partnerships, corporations, etc):
4� r- - �N�k _
Amount of outstanding principal owed on building: $
N�-
Please attach a copy of the most recent Property Tax Statement from the
CountyAssessor's Office and Proof of Insurance on the building.
Estimated Rehabilitation Costs and Requested Loan Information
Please describe proposed improvements: (If necessary, please attach additional
pages, including any plan drawings, contractors' bids or proposals obtained by the
applicant. Please itemize costs when possible.)
mom
Estimated Total Cost of Proposed Rehabilitation Work: $ �7 , 4-1 c� ( C_.
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
❑ Personal Savings Private- Sector Loan (Institution: CO,
❑ 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.
Long -Term Building Maintenance Plan
The Downtown and First Avenue Corridor Commercial Site Improvement Loan Program
is not intended to fund routine maintenance of a building's facade(s). The applicant is to
provide with this application a plan that provides the following information
funded under the loan program;
Anticipated source of funding for ongoing required maintenance.
Loan Disbursement
Awarded loan funds will be dispersed to the applicant upon submittal of receipts or
invoices for supplies purchased and work completed.
111. 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.
IM/e 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.
Me 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 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
myself and the contractor(s). The administering agency will not be liable for the
inade uate perform of the contractor(s).
0 / - " C41
Applicant Date
Date
DATA PRACTICES ACT
The following notice is provided for those applicants for the Shakopee Downtown and First
Avenue Corridor Commercial Site Improvement Loan Program that are individuals. The following
does not apply in cases where the applicant is a non - individual, such as a corporation.
(TENNESSEN WARNING)
In accordance with the Minnesota Government Practices Act, the City of Shakopee is required to inform you
of your rights as they pertain to the private information collected from you. Private data is that information whichis
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 approved loan funds are public.
The information collected from you or from other agencies or individuals authorized by you is used to
determine your eligibility for the Downtown and First Avenue Corridor Commercial Site Improvement Loan Program.
The dissemination and use of the private data we collect is limited to that necessary for the administration
and management of the Downtown and First Avenue Corridor Commercial Site Improvement Loan Program. Persons
or agencies with whom this information may be shared include:
1. City of Shakopee personnel administering the Downtown and First Avenue Corridor Commercial Site Improvement
Loan Program.
2. Individuals charged by the city with reviewing applications and making recommendations to the Shakopee EDA.
3. Members of the Shakopee Economic 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 authorized 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 rights to 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: Michael Leek, City of Shako e- rQwr 9 a 1 -QAdr
I have read and unde tood he abov " 7 formation regard
. � 9'/
Date Applicad t
Hennen's Shell
Site Improvement Summary
In order to better serve our customers and continue the growth of our business we feel it is necessary to
remodel and expand the front office area of our auto service station. Auto repair is the mainstay of our
business and we need to improve upon that area. The plan is to move the Service Manager's office to
the front office so he is readily accessible to the customer when they walk in the door. This will also
aid in the ease of express lube service. Expanding and enhancing the store of our building will make
for a safer, more efficient and convenient experience for the customer. We also plan to slightly expand
our offerings of snacks and beverages to include packaged "grab and go" food items and coffee. The
preliminary details of our plans are as follows:
• Spray foam insulation of ceiling and walls to improve energy efficiency and noise — cost
estimate of $1500 from Citywide Insulation
• Electrical work and lighting for the remodeling project — cost estimate of $9850 from Choice
Electric
• Plumbing costs to install a unisex handicap accessible bathroom and install code required three
compartment sink and handwash sink stations — cost estimate of $16,155 from EMI
• Tile flooring and tile for bathroom — cost estimate of $12,500 from Kerber Tile
• Retail merchandising equipment (shelving, open cooler, etc) — cost estimate of $10,900 from
Stan Morgan. We are waiting an estimate from another vendor and this cost will likely go up
due to the need for an undercounter commercial refrigerator and freezer
• Solid surface countertops and cabinets for service desk, cashier station, office area and
food /retail areas — cost estimate of $18,500 from Stan Morgan. Again, waiting estimate from
another vendor
• Upgraded security camera system — cost estimate $5922 from Revolution Systems, Inc
• New doors and windows for front office area — cost estimate of $4164 from DH Enterprises
• Contractor services for framing and finish work — cost estimate of $8500 from Jeurgens
Construction
• Concrete work for interior floor structure and handicap accessible curbing — cost estimate of
$5000 from S &R Construction
• Painting of interior — cost estimate of $1500 from Charlie Suet
All but two of the above businesses that we will be utilizing are Shakopee based companies.
The total cost of this improvement project is $94,491
We are also submitting floor plans as requested. These plans are still a work in progress as we finalize
details for the best possible scenario and are submitted as drafts.
°acs.
Joel ennen
Company:
Hennen's Shell
Phone:
952 - 445 -2478
FaX Number.
952- 445 -0691
From:
Mark Mouser
Date:
5/20/2011
Number of Pages:
1
Subject:
Remodel
Joel, below is our budget price and description of work we propose to dn,
1) Demo
2) Install (6) 2x4 fixtures in remodeled space
3) Provide wiring for (2) coffee makers
4) Provide wiring for (1) cappuroino machine and (b) microwave
S) Wire (1) mini split A/C unit
6) Wire check out
7) install (8) recessed cans under soffit
8) Wire new restroam with 2x4, switch and GFi receptacle
9) Wire cooler with remote condenser
10) Provide permit
Our price for the :work listed above is $9,850,00
All work to be performed between 7:00 IN4 and 3:30 PM
Please feel free to pall with any questions
Elander Mechanical Inc.
591 Citation Drive Shakopee, MN.
Tel: 952-445-4692. Fax: 952-445-7487
Attn: Joel Herman
Hennens Shell Auto Service
807 1 st Ave E
Shakopee, MN 55379
USA
Does Not Include Permit
. Water Closet
PF1723WH White ADA Height Water Closet
ZER6000PLW81CPM Water Closet Flush Valve
PFTSCOF2000WH White Seat OFLC
Total Price Water Closet $615.00
. Lavatory
PF5514WH White 20x18 Wall Hung Lav
Z6915 Chrome Sensor Faucet
P69000MV Temp Mixing Valve
PFGD100 Grid Drain
Total Price Lavatory $$775.00
. Urinal
PF1825WH White Wall Hung Urinal
ZER6003PLWSlCP Urinal Sensor Flush Valve
Total Price Urinal $625.00
_ Kitchenette Area
4 -3 -36 Advance 3 Pot Sink 21x36
Z842H1 Chrome Sink Faucet
3- 289600 Lever Drain
CHSB1716C Elkay Hand Wash Sink
Total Price Material Only $1695.00
. RI Material and Labor
Material and Labor to Rough -in and Finish Plumbing $9450.00
_ Hennen AC,
Samsung 2 ton Mini Split System Installed $2995.00
Ref no: 4824
Date: Apr 14, 2011
Terms:
Page t
DH Enterprises
620 Milwaukee Ct
Shakopee, MN. 55379
952 - 240 -8062
I Name/Address I
Hennen Shell
807 east 1 st ave.
Shakopee, MN 55379
952- 445 -2478
Date stimate No.
05/09/11 1 29
Item
Description
Qty
Total
Materials
Supply (1) Exterior Aluminum Pair of Doors /Frame (76" x 86 ")
0.00
Finish Quoted Clear Anodized Aluminum. Glass for Doors Quoted
1 "OA Clear Tempered Insulated. Doors Quoted Narrow Stile with
10" ADA Bottom Door Rails,
(6) Butt Hinges, MS Lock, Cylinders, Flushbolts, ADA Push /Pulls,
ADA Threshold, ADA Closers, Drop Plates and Bottom Door Sweeps.
Materials
(2) Exterior Aluminum Windows (108" x 48 "). Finish Quoted Clear
3,932.00
Anodized Aluminum.
Glass for Windows Quoted 1 "OA Grey Tempered Insulated,
Labor
4 hours labor to help install windows included.
Labor
labor to install doors
1
232.00
Total $4,164.00
3/9/2011
Proposed CCTV Time a ®d Material Quot for I Hennetl's shed
Front Pump Cameras
ULTRA High Res Camera
2.8 -12mm Lens
etc
192.00
U,Yy1.V V
WPOMu
Re -wire Uhaul iCameras
$215.00
DVR
(1) Ganz 1TB DVR
$1,860.00
$2,020.00
Sub-Total $5,922.00
Side Pump Cameras
Carwash Camera ,
F
I