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HomeMy WebLinkAbout9F - Downtown Building Improv. MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT JUNE 17, 2002 9F DONALD RYE, COMMUNITY DEVELOPMENT DIRECTOR CONSIDER APPROVAL OF RESOLUTION ESTABLISHING A MATCHING GRANT PROGRAM TO ENCOURAGE DOWNTOWN BUILDING FA<;ADE IMPROVEMENTS History One of the recommendations in the Downtown Redevelopment Guide prepared by HKGI in 2000 was to "Provide an economic incentive for existing businesses to reinvest in buildings and facades," The City Council directed staff to develop such a program to accomplish that recommendation. Current Circumstances Staff has prepared a recommended program to assist Downtown businesses in the renovation of storefronts. Details of the program are contained in the attachment titled DOWNTOWN BUILDING FACADE RENOVATION, To summarize, the program will utilize $150,000 from the existing Tax Increment Fund to provide the matching grants to business owners who wish to make fayade improvements. The program is proposed to be in existence either until the money runs out or two years from now. A maximum grant of $25,000 will be available and the minimum is $5,000. To be eligible for grant assistance, all improvements must be approved by staff and be consistent with the design standards for the Downtown in the zoning ordinance. Only actual verified costs will be reimbursed, Issues The issue is whether the proposed program meets the expectations of the Council in providing the desired type of assistance. The total amount of money in the Tax Increment Fund is $288,000 but some of this will be needed for the Pleasant Avenue parking improvements and some will also be needed to assist in infrastructure improvements in the Downtown area. Staff believes $150,000 is the maximum that could be made available for this program. 162,1.r.-'O,;1,PILES\,Q2eda\ccreportli.I102fa\Oade,dCjlc k' 1 uU~Eagle creeK i-we. ~,t:" r-rJor La e, Mmnesota 55372-1714 / Ph, (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER AL TERNA TIVES: RECOMMENDED MOTION: REVIEWED BY: 1, Approve the attached resolution establishing the matching grant program and providing funds for the program. 2. Do not approve the attached resolution 3. Defer action for specific reasons 1. Alternative 1 L\02FILES\02eda\ccreport61702facade,doc 2 ~!4 RESOLUTION 02~ RESOLUTION OF THE PRIOR LAKE CITY COUNCIL ESTABLISHING A MATCHING GRANT PROGRAM TO ENCOURAGE DOWNTOWN BUILDING FACADE IMPROVEMENTS AND PROVIDING FUNDS FOR THE PROGRAM MOTION BY: ~:t SECOND BY: --04 WHEREAS: The City Council of the City of Prior Lake, MN, has determined there is a need for a program of incentives to encourage businesses in the Downtown area of the City to renovate building facades; and WHEREAS: The City Council has determined such a program is in the public interest and serves a public purpose by encouraging the revitalization of the Downtown commercial area; and WHEREAS: There are funds available to assist this program, NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, that it hereby approves the matching grant program contained in the document entitled DOWNTOWN BUILDING FACADE RENOVATION that is attached to and made part of this resolution and hereby approves the use of up to $150,000 to be drawn from the Tax Increment Fund to fund this program Passed and adopted this 17th day of June, 2002. YES NO HAUGEN HAUGEN GUNDLACH GUNDLACH LEMAIR LEMAIR PETERSEN PETERSEN ZIESKA ZIESKA {Seal} City Manager City of Prior Lake document3 16200 Eagle Creek Ave, S,E" Prior Lake, Minnesota 55372-1714 / Ph, (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER DOWNTOWN BUILDING F A<;ADE RENOVATION MATCHING GRANT PROGRAM CITY OF PRIOR LAKE, MN. A maximum of $150,000 will be dedicated for use in this program. Source of funds will be from balances available in Downtown TIF Districts. Funding under this program will be available until the money is exhausted or 2 years from date of approval of the program by the City Council, whichever occurs sooner. Maximum grant amount-$25,000 -Minimum grant amount $5,000 Qualifications- . Property must be located within the Downtown zoning district (C-3, Specialty Business) . Property must be used primarily for retail, office or other uses permitted in the Downtown district . Property improvements must be in compliance with all provisions of the zoning ordinance, particularly the design standards and be approved by staff . The property shall be insured for the full replacement value . Applicant can be either the building owner or tenant (with the joint signature of the owner on the application). . Exterior repairs and improvements can be accomplished without requiring interior improvements unless there is a life safety issue. . Applications for funding shall be accompanied by architect's plans for the renovation that provide elevations of the proposed exterior of the building in sufficient detail. Eligible Improvements- Rehabilitation of storefronts and facades consistent with the design standards in the C-3 district . New signage . Cleaning, painting and staining of exterior surfaces . Masonry repairs . Removal of exterior surfaces Ineligible costs- . Refinancing . Working capital . Inventory 16200 Eagle Creek Ave, S,E" Prior Lake, Minnesota 55372-1714 / Ph, (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER . Materials only . Sweat equity . Improvements completed prior to grant award The City will reimburse 50% of the actual costs of the eligible improvements up to a maximum of $25,000. Such costs shall be documented by submission of paid invoices to the City. Grants will not be made for work completed before execution of a grant agreement with the City. Such agreements shall be subject to the approval of the City Council. The City reserves the sole and exclusive discretionary right to approve or deny all or part of any application for funding under this program. --.---------r~,.,--.,----.--.-.--...-'-