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HomeMy WebLinkAbout4.3 2019 Facade Improvement Program Acceptance and Proposed 2020 Facade Improvement Program TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: December 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 2018 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for the City of Cottage Grove to make it a priority to redevelop/remodel existing business facades that were becoming out of date or financially assist with remodeling commercial buildings.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, in the 2019 Economic Development budget included $25,000 for a pilot façade improvement program. City Council approved the pilot program in December 2018. Discussion 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 were part of the 2019 Façade Improvement Grant Program guidelines. Economic Development Authority December 4, 2019 Page 2 of 4  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. The EDA received six applications and the Economic Development Authority selected the Oasis Chiropractic project located at 7424 East Point Douglas at their April 9, 2019 meeting by a vote of 5-to-0. The City Council approved the award at their April 17, 2019 meeting by a vote of 4-to-0. 2019 Façade Improvement Program Completion As a result of the project award going to the Oasis Chiropractic the City of Cottage Grove Economic Development Authority signed a Business Subsidy Agreement for $24,999 with Point Douglas Management, LLC., the owner of the building at 7424 East Point Douglas Road. As of Wednesday, November 27 the project was completed, and invoices were submitted for proof of expenditures and totaled $53,650. The Cottage Grove Building Division approved a final inspection and based on the completed project the property owner has requested that the EDA approve payment of $24,999 to East Point Douglas Property Management, LLC. Figure 1 Original facade at 7470 East Point Douglas Road Figure 2 Completed facade renovations at 7470 East Point Douglas Road Economic Development Authority December 4, 2019 Page 3 of 4 2020 Proposed Façade Improvement Program The 2020 Façade Improvement Program will follow the same guidelines as the 2019 program with one proposed change. In 2019 the program was marketed to projects that had a maximum amount per award of $5,000 with the potential of awarding the full $25,000 to a project if the project was large enough in scope. Based on the applications submitted in 2019 it was determined that the program and the City would be better served if the program was marketed to projects that were larger in scope and created a greater impact in the community. With the proposed request new marketing and brochures would reflect that applicants could submit for projects up to a maximum of $25,000. The proposed schedule for the 2020 Façade Improvement Program is as follows: • December 2019 - Program is approved as part of the 2020 City of Cottage Grove Budget • January – April 2020 - Program is marketed to area commercial businesses and property owners • April 6, 2020 - Program applications due • April 14, 2020 - Applications are brought before the City of Cottage Grove Economic Development Authority for review and approval of a project award All other guidelines for the 2020 Façade Improvement Program will remain the same as the 2019 Program. Economic Development Authority December 4, 2019 Page 4 of 4 Recommendation 1. By motion approve payment of $24,999 to East Point Douglas Property Management, LLC based on completion of the façade improvement of their building located at 7470 East Point Douglas Road. 2. By motion authorize $25,000 for the 2020 Façade Improvement Program Attachments  7424 East Point Douglas Road Invoices and Receipts  2020 Façade Improvement Brochure