Loading...
HomeMy WebLinkAbout4.3 Facade Improvement Applications TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: June 4, 2020 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 to strengthen the vitality of the community by improving the overall appearance of the City of Cottage Grove commercial districts. The program is a grant program that offers 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 2019 façade grant was awarded to the Oasis Chiropractic building at 7424 East Point Douglas Road. The project overall valuation was for $71,229 and the full $25,000 went to the property owner. Figure 1 Before (above) and After (below) of 2019 Facade Improvement Program Recipient Oasis Chiropractic. Economic Development Authority June 4, 2020 Page 2 of 7 Due to the success of the 2019 program it has been continued for 2020. The 2020 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. Originally the program was to close on April 6, 2020 but due to the COVID-19 pandemic the application deadline was extended to June 1, 2020. Each application that was submitted was reviewed on the following criteria:  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 four applications for consideration and the following is a breakdown of each of the proposed applications. 7998 Hardwood Avenue South (Culvers) th Culvers is located off the 80 Street exit off Highway 61/10 at 7998 Hardwood Avenue South. The building is solely used for Culvers restaurant and is an owner-occupied business. The building is uniquely positioned as one of the properties that is visible as residents and visitors traveling on Highway 61/10. The Culvers application consists of exterior painting of the building, new gooseneck lights, new main entrance door, new exterior signage, awning replacement, and patio umbrella replacement. In total the project has $86,392 in eligible expenses based on the project guidelines. Representing Economic Development Authority June 4, 2020 Page 3 of 7 a 71% private to public funding ratio. The applicant is requesting $25,000 the maximum match per the program guidelines. Figure 2 Image showing what the Culvers building will look like with updated facade changes. 8475 East Point Douglas Rd. (Jamaica Square) Jamaica Square is a multi-tenant office/retail building off the intersection of Jamaica Avenue and East Point Douglas Road. Currently the building is occupied by Papa Murphy’s, Tobacco Store, National Karate, Cottage Barbers, Bella Nails & Spa, and two vacant units. 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, and install a new monument sign for the building. In total this project has $63,670 in eligible expenses based on the project guidelines. Representing a 61% private to public funding ratio. The applicant also included as part of the project a complete resurfacing of the parking lot for $52,000. Through this is not an eligible expense per the program guidelines, the resurfacing of Economic Development Authority June 4, 2020 Page 4 of 7 the parking lot would improve the overall attractiveness of the center and be essential o the overall project. The applicant is requesting $25,000 the maximum match per the program guidelines. Figure 3 Current Jamaica Square facade (top) and an image of the concept submitted by the owner of what they would like Jamaica Square to look like after completion (below). 7750 Harkness Avenue South (Shoppes at Gateway North) The Shoppes at Gateway North is a multi-tenant building off Harkness Avenue north of th the 80 Street and East Point Douglas intersection. The building currently is occupied by Jimmy John’s, Anytime Fitness, Rustic Floral Boutique, Sushi Café, State Farm Insurance, and three vacant units. The Shoppes at Gateway North application is for new canvas canopy covers, painting the existing chain canopy’s, replacing all tower-top and wall covering sheet metal with modern black sheet metal, replacing all exterior light Economic Development Authority June 4, 2020 Page 5 of 7 fixtures, and repairing and painting existing tenant upper EFIS storefronts eggshell and black. The rendering below does show the work to be done on the building, but the rendering also shows additional work that is not to be included in this round of construction. The image shows what the building will look like after all phases are complete. Specifically the image of the parapets being completely removed and replaced, will not be included in this phase of the project and will be done in subsequent phases based on the current business climate with COVID-19, vacancy of the building, and potential cost factors. In total this project has $55,000 in eligible expenses based on the project guidelines. Representing a 55% private to public funding ratio. The applicant is requesting $25,000 the maximum match per the program guidelines. Figure 4 Shoppes at Gateway North renderings after all phases of construction are completed. The current submitted application will not change parapets as shown in the renderings until subsequent phases are complete. 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 site, which will be redeveloped into a four-story market rate apartment building. 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 June 4, 2020 Page 6 of 7 Figure 5 7501 80th Street South Hillside Professional Building Discussion Based on the guidelines staff is recommending that the project submitted by Culvers should be awarded the maximum grant amount of $25,000. Additionally, the current economic conditions have not been easy on businesses and by extension commercial property owners have also felt the pain due to lease delays and forgiveness. Supporting commercial property owners during this time can help our businesses, by ensuring our commercial building stock remains in healthy, and support continued economic growth in the community. These projects not only support commercial properties but offer support to the construction trades by providing jobs and continued employment. As a result, it is recommended that the EDA consider additionally supporting the projects submitted by Jamaica Square and the Shoppes at Gateway North. This additional funding for the program comes from the EDA Trust Fund and not the general fund for the City of Cottage Grove. The final application that th was received was from 7501 80 Street across from the former City Hall site, was only for general maintenance items that do not qualify per the program. These projects meet the following criteria:  These are visible from Highway 61, which is in priority area 1  The projects are comprehensive and has a high leverage of private investment to public investment. th  They improve the appearance of the 80 Street and Jamaica Avenue Commercial Corridors and its visibility to Highway 61/10.  Is consistent with our Comprehensive Plan.  It supplies attractive and updated commercial units for future businesses into our community. Economic Development Authority June 4, 2020 Page 7 of 7 If these projects were to be awarded, the funds are not 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 the grant funds will be awarded to the applicant. Recommendation 1. Approval of the Culvers of Cottage Grove project with an award letter and a contract for $25,000 as part of the Façade Improvement Grant Program. 2. Authorize approval of an additional $50,000 of funding for the program through the EDA Trust Fund with an award letter and contract for $25,000 to Jamaica Plaza LLC and $25,000 to Crown Estates Family, LLP (Shoppes at Gateway North). Attachments Applications Overview Priority Map Façade Applications Application Overview Total Project Total Eligible Eligible Maximum Business/Building Address Costs Award Project Description Exterior painting of the building, new gooseneck lights, new 7998 Hardwood Avenue main entrance door, new exterior signage, awning Culvers South $86,392 $25,000 replacement, and patio umbrella replacement Painting of the building in two color tones, new awnings, Jamaica Square 8475 East Point Douglas Rd. $63,670 $25,000 new building lighting, and a new monument sign New canvas canopy covers, painting existing chain canopy’s, replacing all tower-top and wall covering sheet metal with modern black sheet metal, replacing all exterior light Shoppes at 7750 Harkness Avenue fixtures, and repairing and painting existing tenant upper Gateway North South $55,000 $25,000 EFIS storefronts eggshell and black Hillside Professional Building 7501 80th Street S. $10,185 $5,093 Refinishing Stucco Exterior ¯ Priority Zones Priority Zone 1 Priority Zone 2 0123 Miles