HomeMy WebLinkAbout4.2a 2022 Facade Improvement Program Applications Memo
TO: Economic Development Authority
FROM: Jaime Mann, Assistant to the City Administrator
DATE: April 8, 2022
RE: 2022 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 and Keats Avenue (zone 2),
• Northwest corner of 70th Street and Hinton Avenue (zone 2) and,
• West Point Douglas Road (zone 2).
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April 8, 2022
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Program Funding
The façade improvement program allows the EDA to award matching 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 matching reimbursement.
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 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:
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April 8, 2022
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2019: Oasis Chiropractic Building – 7470 East Point Douglas Road
2020: Culvers of Cottage Grove – 7998 Hardwood Avenue
2020: Jamaica Plaza Building – 8475 East Point Douglas Road
2020: Shoppes at Gateway North – 7750 Harkness Avenue South
2021: Caribou Cabin – 7702 80th Street South
2021: Carlson Auto – 8799 East Point Douglas Road
2022 Façade Improvement Program Applications
The EDA received four applications and the following is a breakdown of each application.
7420 – 7430 80th Street South (Oak Park Commons) – Priority Zone 1
The Oak Park Commons buildings are multi-tenant buildings located on 80th Street near East
Point Douglas Road. The proposed project would consist of installing new canvas awnings,
EIFS and exterior repairs, and a new illuminated monument sign. In total, the project is
estimated at $51,295.93 and the applicant is requesting $25,000 which is a 49% match.
Considering inflationary costs, the percent match could be adjusted based on the actual costs of
eligible expenses. Any awarded dollars would be based on a 50% match of actual costs
incurred by the business up to a reimbursement of $25,000.
Current Façade
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April 8, 2022
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Existing Sign
Proposed Sign
7155 Jorgensen Lane South (The Shoppes at Almar Village) – Priority Zone 2
The Shoppes at Almar Village is a multi-tenant building located on Jorgensen Lane South near
the 70th Street South and Keats Avenue South roundabout. The proposed project would consist
of upgrading the landscaping, upgrading the lighting, repair and painting of the wood sign bases,
and upgrading the building and monument signs. In total, the project is estimated at $19,768.36
and the applicant is requesting $25,000 which is a 100% match. Considering inflationary costs,
the percent match could be adjusted based on the actual costs of eligible expenses. Any
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awarded dollars would be based on a 50% match of actual costs incurred by the business up to
a reimbursement of $25,000.
Existing Building Signage
Existing Monument Sign
8607 West Point Douglas Road South (Hound Around Resort) – Priority Zone 2
The property at 8607 West Point Douglas Road South is a single tenant building. The tenant
and owner of the property is Hound Around Resort. They provide dog boarding, dog daycare,
and dog grooming services to Cottage Grove and the surrounding communities. Hound Around
Resort’s application request is to replace their monument sign with a new digital electronic
message center. In total, the project is invoiced at $77,020 and the applicant is requesting
$25,000 which is a 33% match.
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April 8, 2022
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Hound Around Resort was issued a permit for the sign on January 13, 2022. They passed
inspection for the footing on March 8, 2022. They submitted their application for the façade
improvement program on March 17, 2022. Their sign passed its final inspection on April 1, 2022
so all of the work has already been completed. Per the program guidelines, no work is to be
completed until after being receiving an award letter and completion of the Business Subsidy
Agreement.
Original Sign New Sign
7404 Lamar Avenue South (Lakeside Events) - Not in a Priority Zone
The property at 7404 Lamar Avenue South was purchased in August 2021 and has sat vacant
for a while in Old Cottage Grove. The new owner, Lakeside Events, has applied for a grant to
paint the building, replace the garage door with a glass garage door, refresh landscaping,
replace the sign, and replace the exterior lighting. In total, the project is estimated at $315,116
and the applicant is requesting $25,000 which is an 8% match.
The proposed use will require Planning Commission and City Council approval before any site
improvements can be made. At a minimum, Lakeside Events will need to request City Council
approval for a site plan and termination of an existing Conditional Use Permit for a landscaping
company. Additional approvals may be required as the plan is refined. However, before
anything can be done, it needs to be determined if a septic system can be installed onsite to
support the proposed use. The County has stated that the current site may not be able to
support a septic system large enough to handle the load of an event center. A septic system
designer has been hired by Lakeside Events but an updated status has not been received.
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Once the septic system item is resolved, layout of the site with a civil engineer can begin. At
this time, application for the façade improvement program seems premature.
Existing Building
Proposed Building Layout
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April 8, 2022
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Discussion
Based on the program criteria and priority zones established when the program began, staff is
recommending that the projects submitted by Oak Park Commons and The Shoppes at Almar
Village be awarded the maximum grant amount of $25,000. The projects meet the following
criteria:
• Location within the City of Cottage Grove (based on priority map).
• 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.
• 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 that each approved business sign a Business Subsidy
Agreement which will be sent to the approved business(es). The business is then expected 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 matching
grant funds of up to $25,000 would be awarded to the applicant.
Recommendation
Award Oak Park Commons and The Shoppes at Almar Village an award letter for each project
with matching funds of up to $25,000 for eligible expenses as part of the City of Cottage Grove
Façade Improvement Grant Program.
Attachments
Priority Map
Façade Improvement Program Applications