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HomeMy WebLinkAbout10C - Downtown Facade Improv. CITY COUNCIL AGENDA REPORT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: March 15, 2004 f'\.~." AGENDA #: 10C ~ '" PREPARED BY: Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE TRANSFER OF $100,000 TO THE DOWNTOWN FACADE IMPROVEMENT PROGRAM. DISCUSSION: Historv: The 2020 Vision and Strategic Plan places a high priority on Downtown redevelopment. One aspect of Downtown redevelopment that has proven to be extremely successful is the fac;ade improvement program adopted by the City Council. Prior Lake's fac;ade improvement project is a matching grant program limited to $25,000 per project. The staff evaluated low- and no- interest loans used by other cities and found they were ineffective. In lieu of loans, the City Council adopted the matching grant fac;ade improvement program. The Council allocated an initial sum of $150,000 to the program. Below is a table showing the investment gained from the dollars expended by the City. Ippllcan rOJec os rogram Little Lakers Montessori $67,000 $33,000 Speiker Building $83,040 $25,000 Tupy (HairMate/Liz Kapaun) $9,792 $5,000 Carlson Hardware $56,000 $25,000 Fang's Cuisine $67,000 $25,000 Conoco $64,971 $25,000 Total $347,803 $138,000 Art Total Estimated p . t C t City Share under Fa~ade Improvement p Without question, this has been an extraordinarily successful program. With the approval of the above seven requests, the remaining balance of this account is $12,000. Accordingly, the City Council directed the staff to identify potential additional funding sources so this tool to revitalize Downtown redevelopment may continue. The original $150,000 was drawn from the Downtown Tax Increment Financing (TIF) district. That account has a remaining balance of $145,000:f:. The staff would therefore recommend that an additional $100,000 be allocated from this TIF account. This action would bring the balance of the fac;ade improvement funds to $112,000. Should the Council choose to make this allocation, the staff would also recommend that this be the final allocation for the purpose of the fac;ade improvement program (with the exception of the remaining $45,000 in the Downtown TIF district that could be allocated). Given the State's continuing deficit www.cityofpriorlake.com 1:\COUNCIL\AGNRPTS\2004\FACADp}\MI?~9lS'~.fl(ij",~gG~992.44 7 .4245 and the current building market, it does not appear prudent to reallocate additional funds from the General Fund Reserve. ISSUES: Since the money is drawn from a Downtown Tax Increment District, it is appropriate that fa<;ade improvement eligibility continue to be limited to the Downtown only, and that the program be named the Downtown Redevelopment Fa<;ade Improvement Program. ALTERNATIVES: (1) (2) (3) Approve the attached Resolution authorizing the transfer of $100,000 from the Downtown Tax Increment Financing District to the Downtown Redevelopment Fa<;ade Improvement Program. Approve the attached Resolution with amendments. Take no action and provide staff with additional direction. RECOMMENDED MOTION: Alternative (1). Motion and Second to Approve Resolution 04-XX Authorizing the Transfer of $100,000 from the Downtown Tax Increment Financing District to the Downtown Redevelopment Fa<;ade Improvement Program. 1:\COUNCIL\AGNRPTS\2004\FACADE IMPROVEMENT PROGRAM. DOC "~""~'''''','''''''.'""--_..~..;.,......,~-....,~..........._.-,,,,..--...,,,.,....-...,.-..-,~.,.......,._lo"~~"~__~"'_""_~_._"'__~''''_.~___''<''''.'_'''''"''''''~"""_''''''''''.h,'_",~;""_"",<,,,c,,",,,,,,,,-,~",,,,,,,,",,,'"-;,,,,_=,.__ RESOLUTION 04-XX 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 A RESOLUTION AUTHORIZING THE TRANSFER OF $100,000 TO THE DOWNTOWN REDEVELOPMENT FA~ADE IMPROVEMENT PROGRAM. Motion By: Second By: WHEREAS, the City's 2020 Vision and Strategic Plan places a high priority on the redevelopment of Downtown Prior Lake; and WHEREAS, on June 17, 2002, the City Council established a matching grant program to encourage Downtown building fac;ade improvements and provided funds for the program; and WHEREAS, to date, seven business owners have participated in the program investing an estimated $347,800 in revitalizing their Downtown buildings; and WHEREAS, the City Council has determined that this valuable and successful program is in the public interest and serves to encourage the revitalization of the Downtown commercial area consistent with its design guidelines. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The recitals set forth above are incorporated herein. 2. Staff is hereby authorized to transfer funds in the amount of $100,000 from the Downtown Tax Increment Financing district to the Downtown Redevelopment Fac;ade Improvement Program. PASSED AND ADOPTED THIS 15TH DAY OF MARCH, 2004. YES NO Haugen Haugen Blomberg Blomberg LeMair LeMair Petersen Petersen Zieska Zieska City Manager, City of Prior Lake www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245