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HomeMy WebLinkAbout4.3a 2022 Facade Improvement Program Application Memo TO: Economic Development Authority FROM: Jaime Mann, Assistant to the City Administrator DATE: June 10, 2022 RE: 2022 Façade Improvement Program Application 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). Economic Development Authority June 10, 2022 Page 2 of 4 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 two grants previously in 2022 so that leaves funding available to approve one more $25,000 grant in 2022. The previous grant awardees have included: 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: Oak Park Commons – 7430 80th Street South 2022: The Shoppes at Almar Village – 7115 Jorgensen Lane South Economic Development Authority June 10, 2022 Page 3 of 4 2022 Façade Improvement Program Applications The EDA received a new application dated June 9, 2022 in addition to the applications that were presented previously. 7584 80th Street South (Hemingway Retail, LLC) – Priority Zone 1 The Hemingway Retail building is a multi-tenant building located on 80th Street South at Hemingway Avenue South. The proposed project would consist of exterior repainting and residing where needed, replacement of windows and doors, some landscaping, and exterior masonry/stucco repair. In total, the project is estimated at $117,130 and the applicant is requesting $25,000 which is a 21% 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 Economic Development Authority June 10, 2022 Page 4 of 4 Proposed Façade Discussion Based on the program criteria and priority zones established when the program began, staff is recommending that the project submitted by Hemingway Retail, LLC be awarded the maximum grant amount of $25,000. The project meets 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 this project is awarded funds, no grant funds would be disbursed until the project is complete. The program requires that the approved business sign a Business Subsidy Agreement which will be sent to the approved business. 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 Hemingway Retail, LLC an award letter for the submitted project with matching funds of up to $25,000 for any eligible expenses as part of the City of Cottage Grove Façade Improvement Grant Program. Attachments Priority Map Façade Improvement Program Application