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Home My WebLink About9B - Downtown Facade Improv. 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT SEPTEMBER 6, 2005 9B JOHN SULLIVAN, COMMUNITY DEVELOPMENT DIRECTOR CONSIDER APPROVAL OF A RESOLUTION APPROVING A FINAL REPORT ON THE DOWNTOWN FACADE IMPROVEMENT PROGRAM AND EXTENDING THE DEADLINE FOR THE IVEX, LLC FACADE IMPROVEMENT Introduction: The City Council is being asked to approve the following: 1. a final report on the Downtown Fayade Improvement Program and, 2. the extension of a previously approved deadline for the IVEX fayade improvement project. History: In June 2002, the City of Prior Lake initiated a fayade improvement program which would provide a maximum of a $25,000 match to a business that would invest $25,000 or more of their own funds to improve the building fayade or create a new building that met certain design criteria for the downtown area. The facade program was created to fulfill the goals and plans of the City of Prior Lake's 2030 Vision and Strategic Plan, specifically the Vision Element called Downtown Redevelopment. The City Council initially authorized the use of up to $150,000 to fund a Downtown Fayade Improvement Program for the area covered by the Downtown zoning district. The purpose of the program was to revitalize, renovate exteriors, and increase investment in the downtown area. Due to the overwhelming response to the program from downtown businesses, the City Council authorized an additional $100,000 in 2003. In October 2004, the City Council authorized additional funding in the amount of $34,000 to accommodate additional fayade project requests. A total of $284,000 was allocated by the City to the program. Since the program was established, the City has invested $277,086, while a dozen downtown businesses have cumulatively invested $2,120,235. The total investment in the downtown fayade program is $2,397,321. This program has been a very good example of public investment leveraging significant private investment. Our downtown has been improved considerably by this program. Current Circumstances: The table below illustrates the Downtown Fayade Improvement Program and its impact on investment in Downtown Prior Lake: www.cityofpriorlake.com l:\COUNCIL\AGNRPIS\2005\090605 DOWllt'PWJRir9S2:2flf1.~230 / Fax 952.447.4245 DESCRIPTION BUILDING DATE PROJECT BUSINESS COST CITY COST COST Little Lakers Montessori School $67,074 $33,000 $34,074 (Far;ade Improvement - Four Sides)* 9/212003 Speiker Building $680,000 $25,000 $655,000 (New Building) 9/2/2003 Carlson Ace Hardware $56,582 $25,000 $31,582 (Facade Improvement - Two Sides) 1/5/2004 Fong's $70,000 $25,000 $45,000 (Facade - One Side) 3/1/2004 Harry & Gina Tupy $18,037 $8,565 $9,4 72 (Two Front Facades) 4/5/2004 Viking Liquor $48,568 $17,500 $31,068 (Facade - One Side) 4/19/2004 Extra Innings $36,042 $18,021 $18,021 (Facade - One Side) 5/17/2004 O'Malleys on Main $52,000 $25,000 $27,000 (Facade - One Side) 6m2004 $1,200,000 $25,000 $1,175,000 IVEX new planned building** 10/4/2004 $58,872 $25,000 $33,872 VFW (Far;ade - Two Sides) 10/4/2004 Express Gas and Groceries (Far;ade $60,073 $25,000 $35,073 Two Sides) $50,073 $25,000 $25,073 Dehmlow Auto (Far;ade - Two Sides) 1 0/4/2004 $2,397,321 $277 ,086 $2,120,235 TOTALS *Exceeded $25,000 because far;ade improvements were required for all walls ** means not yet constructed ISSUES: Only $25,000 remains in the fac;ade improvement program fund. This balance was committed for the IVEX building project on 4616 Colorado Street. IVEX has not yet constructed their building and has asked the City Council for an extension on their fac;ade improvement until October 1, 2006. The City Council's October 2004 approval provided a deadline of September 1, 2005 for construction. IVEX is planning on building a four story, 2800 square foot multi- purpose office building on the Colorado Street site. Over the last year they have been working on building plans. They have also expressed concern about the general off street parking available for their building tenants. This is one of the reasons the City recently purchased and will be converting the Laker Line Park and Ride lot to general parking. FINANCIAL IMPACT: There is no financial impact to the City based on the approval of the facade report or the granting of an extension to IVEX. There have been no additional requests for fac;ade improvement funding. ALTERNATIVES: 1. Approve Resolution 05-xxx 2. Deny Resolution 05-xxx RECOMMENDED MOTION: RE~tr Frank Boyl Alternative 1. 1:\COUNCIL\AGNRFIS\2005\090605 Downtown and IVEX bcade.doc MOTION BY: SECOND BY: WHEREAS: On June 17th, 2002 the City Council adopted resolution 02-99 establishing a matching grant program to encourage Downtown building fac;:ade improvements and providing funds for the program, and WHEREAS: The funds for the Downtown Improvement Program have been successfully invested in the downtown area in the amount of $2,397,321, with a City investment of $277,086 and a business investment of $2,120,235, and WHEREAS: The City Council has reviewed the Downtown Fac;:ade Improvement Program Final Report presented by staff, and WHEREAS: IVEX, LLC successfully applied for a grant not to exceed $25,000 on October 4, 2004 and said application was approved by the City Council, and WHEREAS: The City Council has $25,000 remaining in the balance of the fund that is committed for the IVEX building project located at 4616 Colorado Street, and WHEREAS: IVEX, LLC has applied for an extension of their approved fac;:ade project until October 1, 2006 as their original project completion deadline expired on September 1, 2005, and WHEREAS: The IVEX LLC project is a substantial downtown building project with a total value estimated to be $1,200,000 with up to 40 jobs and new tax base creation, and NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, 1. The recitals set forth above are incorporated herein. 2. The final Downtown Fac;:ade Improvement Report is hereby accepted. 3. The fac;:ade project extension for IVEX, LLC is hereby approved for the property located at 4616 Colorado Street until October 1, 2006. 4. The fac;:ade grant amount is to be paid in an amount up to 50% of demonstrated costs related directly to fac;:ade construction. In any case, the amount paid to the applicant shall not exceed the amount listed above. The City shall reimburse the applicant for actual costs incurred as demonstrated by paid invoices, cancelled checks, lien wavers or such other evidence of payment of eligible costs as the City in its sole discretion may require. 5. In the event the work covered by this resolution is not completed by October 1, 2006, the City shall no longer be obligated to reimburse costs incurred after that date. Passed and adopted this 6th day of September, 2005. YES NO HAUGEN HAUGEN FLEMING FLEMING LEMAIR LEMAIR PETERSEN PETERSEN ZIESKA ZIESKA {Seal} Frank Boyles, City Manager R:\Rr:S()L(,'rJ\A DM INRlS\2005\9-6-05 l)owl1town FaWU\Mh4:~PJli.Q~.QQJn Phone 952.447.4230 / Fax 952.447.4245