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HomeMy WebLinkAbout4.3 Facade Improvement Program Addition Memo TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: April 8, 2021 RE: Façade Improvement Program Addition Introduction A façade improvement program is a popular mechanism to incentivize improvements to the exterior of commercial buildings. The purpose of the façade improvement program is to strengthen the vitality of the community by improving the overall appearance of the City of Cottage Grove commercial districts. Background Program Background In 2019, the City of Cottage Grove approved a façade improvement program; the program is a grant-based program that offers a 50% match in financial assistance to commercial property and/or business owners. The 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. As part of the program, criteria was established that an applicant must meet in order to apply for the program. The criteria is used to determine the grant awardee(s). The criteria includes:  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. As referenced in the criteria, a business must be located in the City of Cottage Grove. Priority is given to applications from areas that contain a larger concentration of commercially zoned parcels as well as those areas in the community that have a more visible/higher traffic count. The priority zones include:  80th Street and East Point Douglas Road (Zone 1),  Jamaica Avenue and East Point Douglas Road (Zone 1), th  Southwest Corner of 70 Street (Zone 2) and,  West Point Douglas Road (Zone 2). Economic Development Authority Façade Improvement Program Addition April 8, 2021 Page 2 of 4 Priority Zone Map Program Funding The façade improvement program allows the EDA to award grants for 50% of the costs of improvements. In 2019, the maximum grant amount was $5,000, but the program allowed the EDA to award larger grant amounts based on the scope of the property and/or business owner’s project and funding availability. Based on the applications received in 2019, it was determined that the City would be better served if the program was marketed to projects larger in scope and created a greater impact in the community. In 2020, the funding was changed to reflect projects of larger scope, and applicants could submit for projects up to a maximum of $25,000. In 2020, residents and businesses were impacted by the COVID-19 pandemic. The economic impact during this time for the business community has been difficult. The City of Cottage Grove wanted to continue to show support for the business community, so the EDA was approved additional funding for the façade improvement program ($50,000) from the EDA Trust to demonstrate the commitment to Cottage Grove business community. In total the façade improvement program budget is $75,000, which allows the EDA to award up to three (3) $25,000 grants to businesses. The EDA has awarded larger grant amounts ($25,000) to applicants who have made larger improvements to their buildings. The grant awardees include:  Oasis Chiropractic Building – 7470 East Point Douglas Road  Culvers of Cottage Grove – 7998 Hardwood Avenue  Jamaica Plaza Building – 8475 East Point Douglas Road  Shoppes at Gateway North – 7750 Harkness Avenue South Economic Development Authority Façade Improvement Program Addition April 8, 2021 Page 3 of 4 Discussion Suggested Program Addition The façade improvement program has been in place for two years and it is important to review program criteria and incentives for potential improvements. There has not been any feedback from the business community that the program criteria has been difficult to meet or concerns from previous grant awardees. The proposed program addition is to add a design assistance incentive. Design assistance is intended to assist property and/or business owners in considering appropriate scale and scope of a desired revitalization project for the exterior of their building. The design professional would be able to assist the property and/or business owner in creative design options as well as provide assistance for alternative building materials and techniques to apply to an existing building. For example, an architect may be able to assist an owner on what kind of building material(s) could be applied to glass block, to update the aesthetics of a building. The proposed design assistance incentive would have a maximum amount for design assistance. For example, the City of Rochester allows for an additional $2,000 for design assistance that does not require a match from the property and/or business owner. The design assistance would be paid directly to the licensed design professional/architect and would not require matching funds from the grant recipient. The agreement which the grant recipient signs as part of being awarded grant funds would include language that the licensed design professionals design must be incorporated into the facade improvements in order to receive any funds for design assistance. In discussions with a Twin Cities area architect regarding design assistance as a program incentive they felt the overall time a licensed design professional and/or architect would provide a business who used the design assistance incentive would be approximately 18 hours. Billing for design assistance would cost anywhere from $80 to $125 per hour, and a maximum amount of $2,000 for design assistance would be adequate for design services. The design assistance would provide a property and/or business owner the following services with a licensed design professional:  Initial Design Consultation – 1 hour  2-3 Conceptual Design options – 8 hours  Review meeting – 1 hour  1 refined option – 8 hours Total: 18 hours A property and/or business owner would be able to use their own licensed design professional for the design assistance. EDA staff will work on putting together a list of licensed design professionals that may be useful for a local property and/or business owner that may not have a relationship with a licensed design professional. Currently two design firms are open to being listed as providing design assistance. EDA staff will continue to develop a list which currently includes: Economic Development Authority Façade Improvement Program Addition April 8, 2021 Page 4 of 4  Collage Architects - http://collagearchitects.com/ (design only firm)  AMCON - https://www.amconconstruction.com/ (design + build firm) Therefore, a property and/or business owner could apply for a grant of up to $25,000 for façade improvements and in addition they could apply for $2,000 for design assistance, which would not require a matching fund. Funds to pay for the design assistance incentive would come from the EDA Trust ($6,000 total). An applicant could receive an award of $27,000 for their project. 2021 Proposed Façade Improvement Program The program will follow the same guidelines as the previous year’s program with addition of the proposed design assistance incentive. Marketing materials would be updated to reflect the proposed change and then program materials will be mailed to businesses within the priority areas. The proposed schedule for the 2021 Façade Improvement Program is as follows:  April 13, 2021 - Program change to add Design Assistance incentive  May – June 2021 - Program is marketed to area commercial businesses and property owners  July 1, 2021 - Program applications due  July 13, 2021 - Applications are brought before the City of Cottage Grove Economic Development Authority for review and approval of a project award Recommendation Consideration of an addition to the Cottage Grove Façade Improvement Program, to include a design assistance incentive with a maximum of $2,000, and no matching fund requirement. Attachments  Priority Map  Grant Applications to Date Application Overview to Date Total Total Project Eligible Grants Business/Building Address Cost Cost Awarded Project Description 2019 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 - Repainting building, new awnings, installing new lights Orthodontics by Zirbel 7729 79th Street S. $17,799 $9,300 Repainting/staining of building and new landscaping Allina 8611 West Point Douglas $30,702 $10,388 Refinish Main Canopy and Landscaping Manufacturing Solutions of MN 7130 East Point Douglas Rd. $10,150 $10,150 Sign Hillside Professional Building 7501 80th Street S. $10,185 $10,185 Refinishing Stucco Exterior 2020 Exterior painting of the building, new gooseneck lights, new main entrance door, new exterior signage, awning Culvers 7998 Hardwood Avenue $86,392 $25,000 $24,999 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 $24,999 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 $25,000 EFIS storefronts eggshell and black Hillside Professional th Building 7501 80 Street South $10,815 $5,093 Refinishing Stucco Exterior