HomeMy WebLinkAbout10.C.4. Facade Improvement Program � �� �,
Counc i � I O .C .y .
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
Economic Development Authority
Mark McNeill, City Administrator/EDA Executive Director
FROM: R. Michael Leek, Community Development Director
SUBJECT: Fa�ade Improvement Program
MEETING DATE: August 21, 2012
REQUESTED ACTION:
The EDA is asked to recommend to the City Council that it re-implement a fa�ade
improvement program as recommended by the Economic Development Advisory
Committee (EDAC).
Based on the recommendation of the EDA, the City Council is asked to offer and pass a
motion approving the re-implementation of the fa�ade improvement program either as
presented or with changes that the EDA and/or City Council has suggested.
Attached for EDA and Council are the following related draft documents;
1. Brochure;
2. Application;
3. Review Criteria Matrix;
INTRODUCTION:
From the early 1990's until 2011, the City of Shakopee operated a small program to help
fund improvements to businesses first in the Downtown and later in the First Avenue
Corridor. Several months ago, Mayor Tabke and Councilor Whiting requested that the
EDAC discuss and recommend alternatives for the EDA/City Council to consider in
reinstating a loan program. The recommendations contained below are the result of
EDAC discussions over the last few months.
DISCUSSION:
In the mid-1990s the fa�ade improvement program was a pure grant program that was
first available in the Downtown/B-3 Zone. At one time it was expanded to include not
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only the First Avenue corridor and part of Marschall Rd. Later the program was
converted to a loan program, and its use in the Marschall Road/CR 17 corridor was
curtailed. The loans, however, have only been repayable in the event that the applicant
does not own/operate the business for at least five (5) years. In its most recent
iteration, the program was a 50-50 matching program, and the cap on the forgivable
"loans" from the City was $25,000.00.
For the 2012 budget,the Council indicated a desire to revisit the nature and size of the
loans (presumably to look at making them non-forgivable loans that would be repaid),
as well as potentially making a reduction in the amount of such loans. In addition, there
was some concern about how frequently businesses were eligible to receive loans.
However, that discussion did not take place, and thus no funding was included in the
EDA 2012 budget for the program.
Initially, the program was purely for fa�ade improvements in the Downtown, and a very
specific set of architectural guidelines was established for the type of improvements
that should be funded. (See attached copy of guidelines) A later version addressed the
First Avenue area, which does not contain the same concentration of"historic"
structures. By 2011, the program was expanded to allow use for interior improvements
and site improvements as well.
For the EDAC's information, I searched for information on Improvement loan programs,
and came up with information from three other cities (Belle Plaine, Farmington and
Savage). As can be seen from attached table, the loan limits range from $1,500.00 (Bel�e
Plaine)to $25,000.00 (Shakopee). Two of the programs are grant programs, and for the
other two the loans are forgivable. In no case does it appear that repayment is routinely
required. The only limitation I found on frequency of loans was in Farmington, which
allows one per fiscal year.
On March 21, 2012 the EDAC began a discussion regarding whether to reinstitute an
improvement loan/grant program. The EDAC completed its discussion at its July 18tn
meeting. Based on the changes recommended by the EDAC, staff has prepared the
attached documents for EDA and City Council information.
Funding:
Funding for any improvement loan or grant program would come from the Economic
Development Authority (EDA) budget. Funds available for this, or other programs,
would come from the EDA levy, which for the 2012 budget is $80,000. Answers to some
of the questions posed above would determine the ultimate potential availability and
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impact of such program. An increase for this, or other, EDA programs would have to be
addressed in the 2013 budget process, which is currently underway.
RELATIONSHIP TO CITY GOALS:
This item relates to Goal B. Positively manage the challenges and opportunities
presented by growth, development and change.
EDAC RECOMMENDATION:
The EDAC has recommended reinstatement of the fa�ade improvement program as
presented. Specifically and notably, it has recommended the following;
• That the program be made available to businesses in commercial zones
throughout Shakopee;
• That the 'loan' be forgivable as in the past;
• That the maximum loan be $15,000.00, and that the applicant provide a 60%
match to the loan amount;
• That the loans be available for improvements to building facades;
• That the application and evaluation criteria be modified as evidenced on the
attachments;
• That funding for the program be increased to $150,000.00 in 2013.
ALTERNATIVES:
EDA:
1. Recommend to the City Council the reinstatement of the City's fa�ade improvement
program as recommended by the EDAC;
2. Recommend to the City Council the reinstatement of the City's fa�ade improvement
program with further revisions;
3. Table this item for additional information.
CITY COUNCIL:
1. Offer and pass a motion directing staff to implement the City's fa�ade improvement
program as recommended by the EDAC;
2. Offer and pass a motion directing staff to implement the City's fa�ade improvement
program with further revisions as directed by the City Council;
3. Table this item for additional information.
REQUESTED ACTION:
EDA:
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The EDA is asked to offer and pass a motion recommending to the City Council the
reinstatement of the City's fa�ade improvement program as recommended by the EDAC
or with revisions as suggested by the EDA.
CITY COUNCIL:
The City Council is asked to offer and pass a motion directing staff to proceed with the
reinstatement of the City's fa�ade improvement program as recommended by the EDAC
or with revisions as suggested by the EDA and/or City Council.
R. Michael Leek
Community Development Director
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Introduction Eligible Improvements
Projects that restore or enhance a street-
The City of Shakopee is proud of its historic facing fa�ade. In the case of buildings withi
downtown and other commercial areas, and- the Central Business (B-3) Zone, projects
CITY of SHAKOPEE would like to encourage property owners to should meet the standards established in the
maintain and invest in their properties in order "Downtown Shakopee Design Guidelines.'
to preserve them as a profitable businesses and
attractive destinations for years to cou�e. Examples of project work includes:
FA�A�E • Restoration or Replacement of Win-
That is why the City of Shakopee is making dows & Doors
IMPROVEMENT deferred loans available through this Fa�ade • Removal of Vinyl Siding, Artificial
Improvement Program. Brick or other modern coverings
pR�G�M • Restoration and Repair of Brick Fa-
Deferred Loans cades, Wooden Trim and Moldings
• Purchase of New Awnings or Signage
Through the City's Economic Development
Defei-�-ed Loans for the Authority, Shakopee is offering deferred loans To Apply
Restoration and Enhancement of to fund up to 40 percent of the costs of a resto-
Shakopee's ration or enhancement project, up to a maxi- Application materials are available online at
Commercial Districts mum of$l 5,000 per property. The loans are
forgiven on a sliding-scale over a five-year pe- www.ei.shakopee.mn.us
riod if the property owner does not sell the
property during that time. Interested property owners are encouraged t�
apply now. There is no application deadline:
Eligible Properties however, funds are limited and will be
awarded to qualifying applicants on a first-
The loan program is open to commercial prop- come, first-serve basis. Applications will bE
�� erties in Shakopee's B-1, B-2, B-3, Neighbor- reviewed by a committee consisting of repre
� �� hood Commercial and Community Commer- sentatives of the City's EDAC, HPAC,
- --. --- - �---.. .-.. '���� cial zones (see map on reverse). In the Down- Chamber of Commerce and city staff. Final
�•�,�, ���� ��'���� town and First Avenue Corridor, this includes decisions on applications are made by the
�°'�� properties that may be commercial on the first City EDA.
��'���`��-�'���������-�``�'��`-���`�"� floor and residential on the upper floors.
For more information, please contact:
Eligible Applicants
Mark Noble, Pla��ner II
Applications inust be submitted by the proper- City of Shakopee
ty owner(s), or the owner(s) and business 129 S. Holmes St., Shakopee, MN 55379
tenant together. (952)233-9348 / mnoble@ci.shakopee.m��.us
1
CITY OF SHAKOPEE
Fa�ade Improvement Program
Application for Deferred Loan
I. Applicant Information
Name of Applicant
Applicant's primary agent Date of Birth
Name of Co-Applicant/Property Owner
Date of Birth
Tax ID # (if applicable)
Address
Street City State Zip
Telephone # ( ) ( )
Home Work
II. Property Information
Address of Building to be Rehabbed
Property Identification Number (PIN)
Contact Person
Telephone #
Cell Phone Number
E-mail address
Age of Building Number of Stories
Date of Last Exterior Renovation (if applicable)
Estimated Market Value Current Annual Property Taxes
Gross area of building sq. ft. (exclude non-habitable space such as attics,
basements, etc.)
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Gross area of non-residentiai space (include commercial, office, etc.)
Existing building use(s):
Proposed building use(s):
III. 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 Qoint,
tenants-in-common, life estate, partnerships, corporations, etc):
Amount of outstanding principal owed on building: $
Please attach a copy of the most recent Property 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: (please attach additional pages, including
any photo of existing building prior to planned improvements; renderings and/or plan
drawings showing proposed improvements; contractors' bids or proposals obtained by
the applicant. Please itemize costs when possible.)
Describe the expected impact of the proposed improvements on adjacent or
nearby businesses. (In other words, do you have reason to know or believe that
other business owners are likely to improve their properties if the outcome of
your improvements is positive.)
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Estimated Total Cost of Proposed Rehabilitation Work: $
Requested Loan Amount from the Fa�ade Improvement Program — Loan amount
may be up to 40% of the total construction costs, with a maximum of$15,000.
$
Source of Remaining Funds
❑ Personal Savings ❑ Private-Sector Loan (Institution: )
❑ Other submittals: (eg., pro forma, profit and loss statement, personal guarantees)
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 funds will be dispersed to the applicant upon submittal of receipts or
invoices for supplies purchased and work completed, and verification by the City that
the receipts and invoices are bona fide.
V. Certification
City staff or other authorized representative of the City shall have the right to inspect the
property to be improved at any time from the date of application upon giving notice to
the owner and to occupants.
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I/We certify that all statements on this application are true and correct to the best of
my/our knowledge. I/We understand that any intentionai misstatements will be grounds
for disqualification.
I/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.
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
inadequate performance of the contractor(s).
Applicant Date
Co-Applicant Date
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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.
(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 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 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 Fa�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 Fa�ade Improvement Program. Persons or agencies with whom this information
may be shared include:
1. City of Shakopee personnel administering the Downtown Fa�ade Improvement 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 which 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: , City of Shakopee, (952)233-
I have read and understood the above information regarding my rights as a subject of government data.
Date Applicant Co-Applicant
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SHAKOPEE IMPROVEMENT (LOAN/GRANT) PROGRAM
EVALUATION CRITERIA
Draft 07/06/2012
Property Address and/or Property Identification Number(PIN:
Property is in a commercial zoning district yes no
(i.e. B-1, B-2, B-3, CC or NC)
Property is in the Central Business (B-3) Zone. (Projects lo�ated in the B-3 Zone will be reviewed under
the Downtown Design Guidelines) yes Y ' �no
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Property is used for commercial purposes y�5 y no
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Age of Building/Date of Construction �� ,�� ���,;,,
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Date of Last Exterior Renovation � £:.,. ���,
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Property is in an area of the City where the investment may be likely to spur additional investment in
adjacent or nearby commercial building (Provide a description of how further investment will be spurred
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Proposed prtt�ect is for restoration/renovatian of fa�ade elements visible from a public right-of-way
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YeS � � no
Photo of Existing Build��.�nd Rendering of Improvements provided yes no
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Description of proposed improvQments:
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Total estimated cost of proposed work:
Contractor's estimated cost of work submitted yes no
Requested loan amount:
Documentation regarding impact on the business of the improvements
Documentation regarding impact on adjacent and/or nearby businesses��ommercial buildings
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EVALUATION MATRIX: FA�ADE IMPROVEMENT PROGRAM
1-point 2-points 3-points 4-points
Zoning–Applies
to NC, CC, B-1, B-
2, and Central
Business (B-3)
Fa�ade to be Adjacent to alley Adjacent to local Adjacent to Adjacent to
improved street collector street or principal arterial
1 minor arterial
Financial Pro Forma Profit and Loss i Other evidence Pro Forma and/or
Information and Statement ' that the business Profit and Lost and
guarantees 4 is presently Personal
profitable Guarantees
Documentation General statement Data regarding Data regardin�, Data regarding
regarding impact regarding anticipated energy increase in ���� expected increase
�._���..
of improvements improvements savings from the i number of visit��S� .in sales that are
on the business having a salutary project > z�; � to the business expected to result
effect �'�� � �#fiat are expected from the
as a result of improvements
"improvements
Documentation General statement Identifies specific � Information Letters of
regarding impact that it will have a businesses that regarding other recommendation
on adjoining or positive impact. are interested in businesses that from other
nearby businesses the project and are%developing adjacent or nearby
investments in "„ � maybe making proposals, but businesses
their buildings ���`' investments may be waiting to
� F` ��': ° see the outcome
�: �� ,
, �`��� y , � of the applicant s
�, , � -;-� �:�;�= project.
TOTAL << _�, 4 8 12 16
�, —
Minimum score tt��,l�e,considered for a matching loan/grant=4
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Maximum possible sco `�~ 16 .,� ���
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