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Home My WebLink About4.2 Facade Improvement Program Applications TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: April 4, 2019 RE: Façade Improvement Program Applications Background A façade improvement program is a popular mechanism to incentivize improvements to the exterior of commercial buildings. In 2019, the City of Cottage Grove approved a pilot façade improvement program is to strengthen the vitality of the community by improving the overall appearance of the City of Cottage Grove commercial districts. Through a 50% match in financial assistance to property and business owners. This financial assistance is meant to help beautify buildings, increase consumer awareness of businesses and sustain a healthy commercial building stock in Cottage Grove by keeping them in code compliance. The recommendation for a façade improvement program came out of Cottage Grove’s 2019 Business Retention and Expansion Program as a result of interviews with local businesses. In those interviews’ businesses requested for the City of Cottage Grove to make it a priority to redevelop/remodel existing business facades that were becoming out of date or financially assist with remodeling commercial buildings. Based on that feedback the proposed 2019 Economic Development budget included $25,000 for a pilot façade improvement program. City Council approved the pilot program in December 2018 for 2019. The 2019 Façade Improvement Grant Program was marketed to existing business and commercial property owners. Marketing the program consisted of developing an introductory letter to the program along with a brochure explaining program details. The letter and brochure were mailed out to all business and property owners. The brochure and letter directed those interested in the program to the City of Cottage Grove’s website that further explained the program and online application. Finally, to further market the program staff delivered the brochure to businesses and spoke to building owners to promote the program. Each application that was submitted was reviewed on the following criteria that arepart of the 2019 Façade Improvement Grant Program guidelines.  Location within the City of Cottage Grove (based on priority map). Economic Development Authority April 4, 2019 Page 2 of 7  Ability to encourage improvements to surrounding businesses.  Ability to improve the appearance and attractiveness of an area.  Consistent with Cottage Grove Comprehensive Plan  Compliance with City Codes  Priority may be given to local businesses over national/regional tenants  Building owners who have not previously been awarded a grant will be considered before those who have already received grant funding. The EDA received six applications and the following is a breakdown of each application. 7424 East Point Douglas Rd. S. (Oasis Chiropractic) The Oasis Chiropractic and Wellness Building is a multi-tenant office and retail building located off of East Point Douglas Road just east of HyVee. The building currently has three tenants. The Oasis Chiropractic and Wellness Building application consists of a complete exterior building update. The brown elevated soffit will be covered with sheets of VLP. The new soffit will have three different elevations and be topped with crown molding. The soffit will also provide attachment points for three new signs. The east and west side of the building will also be updated with VLP siding. The front of the building will see an entire new look with stone masonry and gray metal accents, new LED lighting and three new LED signs for the tenants in the building. In total project cost is $66,458 and the applicant is requesting $25,000 the maximum match for the grant. Figure 1 Mock drawing for the Oasis Chiropractic Building project. Economic Development Authority April 4, 2019 Page 3 of 7 8475 East Point Douglas Rd. (Jamaica Square) Jamaica Square is a multi-tenant office/retail building off of the intersection of Jamaica Avenue and East Point Douglas Road. Jamaica Square’s application is for a project to repaint their entire building for a two-tone look, replace the awnings to match the newly painted building and install new lighting fixtures on the exterior of the building. In total the project would cost $49,259 and the applicant is requesting $49,259, which is a 50% match. 8611 West Point Douglas Rd. S. (Allina Health Clinic) The Cottage Grove Allina Health Systems made two applications to the program for their clinic located at 8611 West Point Douglas Rod. S. The first application was for the refinishing of the to the canopy of the clinic. In total this project would cost $8,310. Economic Development Authority April 4, 2019 Page 4 of 7 The second application was for a landscaping project that would remove and add lower height plantings to increase visibility and improve aesthetics from West Point Douglas Road and Highway 61. In total this project would cost $22,392. The program guidelines only allow for 25% of project costs to go to landscaping as part of both projects being combined. Therefore, the project costs eligibility would be $10,388 and the applicant is requesting a 50% of $5,194. th 7501 80 Street S. (Hillside Professional Building) th The Hillside Professional Building is located on the south side of 80 Street across from the former City Hall. It is a multi-tenant building consisting of eight tenants. The proposed project would consist of restoration of the exterior stucco finish. In total the project is $10,185 and the applicant is requesting $5,093 in funding. Economic Development Authority April 4, 2019 Page 5 of 7 7130 East Point Douglas Rd. S. (Manufacturing Solutions of Minnesota) Manufacturing Solutions of Minnesota has applied to the program for the replacement of the buildings front wall sign. The project would cost $10,150 for a channel letter illuminated sign. Given the project guidelines the applicant is requesting for $5,075 as a maximum 50% eligible award. Economic Development Authority April 4, 2019 Page 6 of 7 th 7729 79 Street S. (Orthodontics by Zirbel) th Orthodontics by Zirbel located at 7729 79 Street S. has applied to the program for a project in the total amount of $17,799. The project would consist of staining the siding to match existing color of siding, soffit, and fascia and replacement of landscaping and sealcoating of the parking lot. Given the project criteria the qualifying costs for the project are $9,300, as parking lot repair is not covered as part of the program and landscaping can only be 25% of all eligible costs. In total the project would qualify for $4,650. Each application that was submitted was judged based on the following criteria that were part of the 2019 Façade improvement Grant Program guidelines.  Location within the City of Cottage Grove (based on priority map).  Ability to encourage improvements to surrounding businesses.  Ability to improve the appearance and attractiveness of an area.  Consistent with Cottage Grove Comprehensive Plan  Compliance with City Codes  Priority may be given to local businesses over national/regional tenants  Building owners who have not previously been awarded a grant will be considered before those who have already received grant funding. Economic Development Authority April 4, 2019 Page 7 of 7 Discussion Based on the guidelines staff is recommending that the project submitted by Oasis Chiropractic and Wellness Building should be awarded the maximum grant amount of $25,000. The project meets the following criteria:  It is visible from Highway 61, which is in priority area 1  The project is the most comprehensive and has the highest leverage of private investment to public investment.  It improves the appearance of the East Point Douglas Road business community and its visibility to Highway 61/10.  Is consistent with our Comprehensive Plan.  Owner has been a local business owner for the past 16 years. If this project is awarded the funds no grant funds would be disbursed until the project is complete. The program requires the business to submit copies of all receipt/invoices detailed in the project budget and photos of the completed work. After those items are completed and found to match the application grant funds will be awarded to the applicant. Recommendation Award Oasis Chiropractic and authorize staff to submit an award letter to Oasis Chiropractic for $25,000 as part of the Façade Improvement Grant Program. Attachments Applications Overview Priority Map Façade Applications Application Overview Total Total Total Eligible Project Eligible Maximum Business/Building Address Cost Cost Award Project Description Oasis Chiropractic 7424 East Point Douglas Rd. $66,458 $66,458 $25,000 New soffit, stone masonry, metal accents, signs and lighting Jamaica Square 8475 East Point Douglas Rd. $49,259 $49,259 $24,630 Repainting building, new awnings, installing new lights Orthodonitic by Zirbel 7729 79th Street S. $17,799 $9,300 $4,650 Repainting/staining of building and new landscaping Allina 8611 West Point Douglas $30,702 $10,388 $5,194 Refinish Main Canopy and Landscaping Manufacturing Solutions of MN 7130 East Point Douglas Rd. $10,150 $10,150 $5,075 Sign Hillside Professional Building 7501 80th Street S. $10,185 $10,185 $5,093 Refinishing Stucco Exterior ¯ Priority Zones Priority Zone 1 Priority Zone 2 0123 Miles