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HomeMy WebLinkAbout4.2 Memo Facade Improvement Program Applications TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: July 7, 2021 RE: Façade Improvement Program Applications 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),  Southwest Corner of 70th Street (Zone 2) and,  West Point Douglas Road (Zone 2). Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 2 of 7 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 have included: Oasis Chiropractic Building – 7470 East Point Douglas Road Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 3 of 7 Culvers of Cottage Grove – 7998 Hardwood Avenue Jamaica Plaza Building – 8475 East Point Douglas Road Shoppes at Gateway North – 7750 Harkness Avenue South 2021 Façade Improvement Program Applications The EDA received four applications and the following is a breakdown of each application. 7702 80th Street South (Caribou Cabin) – Priority Zone 1 The building located at 7702 80th Street located at the northwest corner of 80th Street and Hinton Avenue has been vacant for approximately five (5) years. The existing building was not handicap accessible and did not allow for a drive-thru to be added to the existing building due to the layout on the site. In March 2021, Java Properties purchased the site to build a Caribou Cabin. Java Properties tore down and removed the existing building and will build a coffee shop with a drive-thru and walk-up window only, and a new monument sign. The proposed project will cost $97,000 and the applicant is requesting $25,000, which is a 26% match. Existing Building Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 4 of 7 Proposed Caribou Cabin 8799 East Point Douglas Rd. (Carlson Auto) – Priority Zone 1 The property at 8799 East Point Douglas Road is a single tenant building. The tenant and owner of the property is Carlson Auto. Carlson Auto provides automotive repair services to Cottage Grove and surrounding communities. Carlson Auto’s application request is to replace the seven (7) garage doors and add a matching shed to the site. They also plan to paint the pylons on the sides of the garage doors and remove the blue awning to provide for a more modern clean look. In total the project would cost $49,259 and the applicant is requesting $25,000, which is a 51% match. Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 5 of 7 Existing Building Proposed Building Improvements 8617-8619- West Point Douglas Road (Pointe West Business Center) – Priority Zone 2 The Pointe West Business Center is a multi-tenant building located on West Point Douglas Road near the Jamaica Avenue roundabout. The proposed project would consist of tuckpointing and block replacement over the entire building as well as removing and replacing caulking around the building. They will also be acid washing the building to provide a unified and clean look to the property once completed. In total the project is $75,000. and the applicant is requesting $25,000, which is a 33% match. Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 6 of 7 Existing Building 7402 Lamar Avenue South. (Boondocks Vintage Boutique) - Not in a Priority Zone The property at 7402 Lamar Avenue was recently purchased after having sat vacant for a number of years in Old Cottage Grove. The new owner, Boondocks Vintage Boutique has applied for a grant to redo the parking lot and sidewalk to meet ADA standards. As well as to add an awning and lights as well as replace building boards and paint the building and add landscaping. The applicant submitted invoices, but they were in macOS format. Staff reached out requesting the applicant drop off the invoices for the proposed work that is required as part of the façade grant application. At the time of the sending out the EDA packet staff had not received the invoices. Existing Building Economic Development Authority 2021 Façade Improvement Program Applications July 7, 2021 Page 7 of 7 Current Status of Building Discussion Based on the program criteria and priority zones established when the program began, staff is recommending that the projects submitted by Caribou Cabin, Carlson Auto, and Pointe West Business Center 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 and 2  They improve the appearance of the East Point Douglas Road and West Point Douglas Road business community and its visibility to Highway 61/10.  Is consistent with our Comprehensive Plan.  Businesses and/or owners have not been previously awarded grant funding. If these projects are awarded 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 then the grant funds would be awarded to the applicant. Recommendation Award Caribou Cabin, Carlson Auto, and Pointe West Business Center an award letter and a contract for each project of $25,000 as part of the Façade Improvement Grant Program. Attachments  Priority Map  Façade Applications