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EDA Agenda - 03/01/2023 (workshop)AGENDA ECONOMIC DEVELOPMENT AUTHORITY (EDA) WORKSHOP Wednesday, March 1, 2023 — 4:30 p.m. Monticello Community Center Members: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, and Councilmembers Lloyd Hilgart and Tracy Hinz Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, and Hayden Stensgard 1. Call to Order 2. Roll Call 3. Facade Improvement Forgivable Loan Application Submittals and relationship to Block 52 Redevelopment Goals 4. Adjournment EDA: 02/24/23 3. Consideration of Discussion of Facade Improvement Forgivable Loan Applications related to Block 52 redevelopment goals and efforts (JUAS) A. REFERENCE AND BACKGROUND: Three Facade Improvement Forgivable Loan Applications were recently submitted to City staff from Block 52 property owners. The three application submittals were from the following properties: 1. Lucille and Jon Murray — Lucille Murray's Dance Studio, 155 West Broadway — Letter of Intent 2. Buchholz Construction — East wall of Mattress Store (located on redevelopment property) — Preliminary Application form 3. John Thorud — Sleep Concepts Mattress Store — 149 West Broadway Preliminary Application form Each of the applications should be considered preliminary or an inquiry as they are not in the desired form and do not include construction quotes nor renderings. There are unique factors related to these properties and the skill sets -capabilities of the applicants along with program guidelines and current program funding levels that should be discussed with direction provided to staff and the applicants. A summary of those factors includes: ✓ A desire to complete improvements on three sides of each building. ✓ Construction expertise by Buchholz Construction (east wall of Mattress Store) ✓ Program requirements for multiple bids ✓ Program funding authorization of $250,000 with $50,000 already spent leaving a balance of $200,000. ✓ No completed architectural renderings for the two buildings (photos available; historic and preference pictures); EDA dollars have previously been allocated to complete architectural renderings. ✓ Potential combination two building Fagade Improvement project due to involved party skills sets and knowledge that may result in potential efficiencies and cost savings. EDA: 02/24/23 Al. STAFF IMPACT: The tasks and time commitment thus far related to discussing the Fagade Improvement program submittals and the Program Guidelines as they may be practical in Block 52 are minimal. Staff involved include the Community Development Director, the Community & Economic Development Coordinator and the Economic Development Manager. A2. BUDGET IMPACT: There is a minimal budget impact involved in the discussion of the Fagade Improvement Program applications as they relate to Block 52. B. ALTERNATIVE ACTIONS: 1. No motion; discussion only. 3. Motion of other as directed by the EDA. C. STAFF RECOMMENDATION: No motion is required. The EDA is asked to discuss the entire Fagade Improvement applications and the Program guidelines, constraints, possible waivers of guidelines and the realities of the current funding level. D. SUPPORTING DATA: a. #1. Lucille and Jon Murray Dance Studio - Letter of Interest a. #2. Buchholz Construction East Wall of Mattress Store - Preliminary Application a. #3. John Thorud Mattress Store - Preliminary Application b. Fagade Improvement Program Guidelines c. Fagade Improvement Program Application February 10, 2023 Dear members of the Economic Development Authority, We are writing to inform you of our interest and intent to take part in the facade improvement program. We are the owners of the dance studio building located on Block 52 (155 West Broadway, Monticello). We are looking at updating the outside of our building. The building is roughly 60 by 120 ft, and we will need the front, side and back redone. This is a total of 240 linear feet. We are requesting to be considered for multiple grants since we will have three sides of our building highly visible in the new downtown plan. We are looking to resurface/update the current overhang on our building, replace the windows, and resurface/paint/stain the existing brick on the exterior of our building. The main doors in the front are new and were replaced when we moved into the building. However, we may need to replace the doors at the rear of our building.We are also considering raising the parapet to better match the heights of the surrounding buildings. Our goal is to freshen the exterior while maintaining the architectural history of the building and complement the new construction on the block. We have actively been pursuing bids and designs since July of 2022. It has proven to be a slow process. However, we would like to move forward and are seeking your guidance on our next steps. We have been communicating with Buchholz Construction and Randahl Construction. We also have been in contact with an architect in the event that formal renderings are required. Please let us know what exact steps we need to take to move forward with the process. We hope to have the work done this spring/summer. Thank you for your time and consideration. Sincerely, Jon & Lucy Murray DocuSign Envelope ID: 28760724-9967-46BF-98E2-B09138F2F749 City of Monticello/Monticello Main Street, Inc. FAe ADE IMPROVEMENT MATCHING GRANT PROGRAM APPLICATION 09/20/22 Application Date: Owner of Business: Block 52 Holdings LLC, Norgren Exhange, Buchholz Exchange Business Name and Address: Performing structural and aestic work on (Sleep Concepts) 149 W Broadway Phone: Estimated Cost of Project: Paint Signage Repair or replacement windows Masonry Repairs Awnings Other Structural Items needed to process this application: Current photograph of subject property Drawings of proposed improvements Written description of proposed improvements, including materials and colors r 48A3075D274C8 046494s) Signature(s) .. $ $35,000.00 $ $15,000.00 For Administrative Use Only: Application Received (Date & Initials) Preliminary Approval (Date & Initials) Final Inspection & Approval (Date & Initials) Payment Request Submitted (Date & Initials) �4 0 � m O O p0 O � 3 N N t F U d O O c a � N c m � o E 14 o N E m a n E v v ` 4 p 0 � m O O O O 00 E 3 14 I� o 14 « w` E n E v 4 p _ p E A p N N N N N N 0 N E 3 14 I� o 14 « w` E n E v 4 p _ p E A p V a ^ n E 4 � M p a 0 = O a 6 4 4 E Q d Q 4i `a N Li « s z E N E 14 I� o 14 « w` E n E v 4 p _ p N p A p m a ^ n E p n 0 a M p a 0 V c 4 i d b Q W 4 4 E Q q O C C 6 Q 4i v N Li « N E 0 o n a « w` E n E v _ 4 m a ^ n E p n 0 a M p Q 0 V c v D rcuSrin Envelope ID. 28]1392096]468F-ME2-89913817217149 City of Monticello/Monticello Main Street, Inc. FACADE IMPROVEMENT MATCHING GRANT PROGRAM APPLICATION Application Date: 09/20/22 Owner of Business: John Thorud Business Name and Address: Performing structural and aestic work on (Sleep Concepts Mattress & Futon Company)149 W Broadway Phone: Estimated Cost of Project: Paint Signage Repair or replacement windows Masonry Repairs Awnings Other 5 $ 5,000.00 5 15,000.00 5 $20,000.00 510,000.00 5 Matching grant funds shall be paid on behalf of Sleep Concepts Mattress &Futon Factory Items needed to process this application: Current photograph of subject property Drawings of proposed improvements Written description of proposed improvements, Including materials and colors Applicant(s)Signature---(s) n�s) Sign�aturee((s) f F�- ForAdministrative Use Only: Application Received Preliminary Approval Final Inspection & Approval Payment Request Submitted (Date&Initials) (Date & Initials) (Date & Initials) (Date & Inaials) TY LMonticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN FACADE IMPROVEMENT FORGIVABLE LOAN PROGRAM GUIDELINES AMENDED NOVEMBER 9, 2022 POLICY PURPOSE The City of Monticello Economic Development Authority ("EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan program is to support a visually and financially appealing Downtown and greater Monticello community by providing forgivable loans to improve the fagades of existing Downtown commercial and retail buildings. ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Fagade Improvement Forgivable Loan (" Loan') as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Loan program. This is a pilot program, and additional areas and allocations will be considered at a future date. FORGIVABLE LOAN FUND TERMS & CONDITIONS Loan Amount * Structure Individual loans may be made in an amount ranging from $5,000450,000. Loan forgiveness generally takes place over a three-year period with fifty percent (50%) of the award forgiven at the end of the first year, and twenty-five percent (25%) forgiven at the end of years two and three. The EDA may extend or reduce the forgiveness period based on the dollar amount of the loan. If the benefitting building is sold within the period of the loan, the loan must be repaid. The Applicant must provide at least 5% of the project cost in cash. The Applicant percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the Loan program to determine responsibilities 1 I Page and commitment for application and its components. The owner of the property must be a cosignatory to the application and Loan agreement. MN325\42\839164.v1 2 1 P a g e The property owner must carry current property insurance both at the time of application and through completion of approved Loan improvements. Property taxes on the subject site must be current for the duration of the Loan. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Loan per building. The EDA reserves the right to approve or reject applications on a case-by-case basis, taking into consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application is at the sole discretion of the EDA. Concurrent Loans The concurrent use of different EDA loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Loan Uses Exterior renovation of front and corner side facades of principal use retail or commercial buildings. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Loan amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to: windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering: Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Loan documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. MN325\42\839164.v1 3 1 P a g e The cost of the building permit for the approved Loan project will be included in the final Loan amount. MN325\42\839164.v1 4 1 P a g e CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Facade Improvement Loan Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Loan application and the Loan agreement. Any costs incurred prior to execution of the Loan agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the Applicant/owner's contractor. The Loan agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Loan program, discuss the project, and obtain application forms. The applicant shall complete and submit a letter of interest to the EDA. After review, the EDA will consider authorization of the facade rendering by the EDA's architectural consultant. Once the architect and applicant have completed the rendering process, the applicant must submit a formal application to the EDA for review. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. MN325\42\839164.v1 5 1 P a g e The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. c. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. c. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF LOAN APPLICATION The EDA, at its sole discretion, may deny any application on a case-by-case basis, taking into consideration factors such as: consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. MN325\42\839164.v1 6 1 P a g e COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 116J.993 to 116J.995. LOAN AGREEMENT If the application for a Loan is approved, the applicant/property owner will be required to enter into a Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as identified herein. DISBURSEMENT OF LOAN FUNDS Upon approval of a Loan application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the procedures and requirements herein. Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Loan Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Facade Improvement Loan Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; MN325\42\839164.v1 7 1 P a g e 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 -day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Loan agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Loan agreement. 2. Lien waivers are required for all contractors and sub -contractors before payment will be made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. MN325\42\839164.v1 8 1 P a g e PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Loan plans. MN325\42\839164.v1 9 1 P a g e EXHIBIT A Geographic Program Limits Downtown Facade Improvement Grant Program Eligibility Area Created by: City of Monticello MN325\42\839164.v1 EXHIBIT B Permitted Fund Uses — Visual Reference MN325\42\839164.v1 Elements of the Facade Overview of the Program y9 1939. �o� - F F 1 E� Cornerstone one �ee� Drsrn+Pi�G +a. -Town.. � MN325\42\839164.v1 Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i y Y•— a t�i t" poll 7A n "10 ,�---- C � 14 Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF The Monticello EDA has developed a Downtown Facade Im- Cornice--- -._ -- provement Loan Program to support property owners in their Upper Frieze- .,._ _-� �:» ¢• ": •� efforts to reinvest in their buildings and in the historic building := fabric of downtown Monticello. The purpose of the loan pro - Lintel gram is to improve the aesthetics of the Downtown and to make Upper Windows - - - -� it a place that is comfortable and appealing to more people _ throughout the day, week and year. Sill ------ The loan program offers up to $50,000 in loan funding to Middle Frieze ---;W;- '` -:._, 4i individual building property owners or building tenants to make a.. front and corner side building facade improvements in the eligi- Transom ---- ti ble area shown below. Door.... • • "- �` -- The funds are provided as forgivable loans, with the loans Display Window generally forgiven over a 5 -year period with 20% of the __ _E rt: principal amount forgiven each year. The EDA's goal is for at Base Panel least 70% of the proper- ty owners in the area to take advantage of the loan. y9 1939. �o� - F F 1 E� Cornerstone one �ee� Drsrn+Pi�G +a. -Town.. � MN325\42\839164.v1 Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i y Y•— a t�i t" poll 7A n "10 ,�---- C � 14 Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF Possible Improvements to building on Broadway City of Monticello, MN Monticello 763-271-3224 Angela. Schuman n@ci.monticel lo. mn.us MN325\42\839164.v1 Monticello Design Threads General Design Considerations Facade Improvement Possibilities The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting. Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality/ Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewalk are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was built over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 A renovation or facade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum sidin). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever posisble. - Architectural services will be offered at no charge to loan fund applicants. paint and signage corner treatments integrated signage restored brickwork murals welcoming fronts — — — — - f 717i-- ---------- ---------BIKE AND 7RIXF 1; Er,� J}y, � 1 _ MN325\42\839164.v1 Sample Illustration MN325\42\839164.v1 CITY OF MONTICELLO EDA MOnticeRo DOWNTOWN FACADE IMPROVEMENT FORGIVABLE LOAN PROGRAM APPLICATION 1. CONTACT INFORMATION Legal Name of Business: Project Site Address: City / State / Zip: . Contact Person(s): Business Phone: Home Phone: Email: Check One: ❑ Proprietor ❑ Corporation Federal ID # State ID # Legal Name of Property Owner: Project Site Address: City / State / Zip: . Contact Person(s): Business Phone: 2. PROJECT GOALS Please give a brief summary of the project: Email: ❑ Partnership 1 I Page Please describe how the proposed project will positively impact the city's downtown/Central Community District:] 3. PROJECT FUNDING A. FORGIVABLE LOAN USE FUNDING REQUEST Maximum grant amount of $50,000 Fagade Improvements Frontage Improvements $ (Signage, awnings, permanent landscaping) Total Loan Request: $ B. OTHER PROPOSED FUNDING SOURCES Bank Loan $ Private Fund Commitment (5% required) $ Applicant Commitment $ Other $ Total Other Funding Sources $ PROJECT TOTAL: 4. PROJECT CONTACTS (Lenders, Private funding_ source, Partners, etc...) 2 1 P a g e Name Address Phone/Email: Name Address Phone/Email: 6. ATTACHMENTS CHECK LIST Please attach the following: A) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project (if applicable) B) Project Plans (Architectural Rendering and Scope must be included) C) Project Quotes/Estimates D)Property Legal Description 7. AGREEMENT I / We certify that all information provided in this application is true and correct to the best of my/our knowledge. I / We authorize the Monticello EDA to verify financial and other information. I / We agree to provide any additional information as may be requested by the city. The undersigned has received the EDA's policy regarding the payment of costs of review, understands that the EDA requires reimbursement of costs incurred in reviewing the application, agrees to reimburse the EDA as required in the policy and make payment when billed by the EDA, and agrees that the application may be denied for failure to reimburse the EDA for costs as provided in the policy. APPLICANT SIGNATURE APPLICANT FAME (Print): PROPERTY OWNER NAME (Print): PROPERTY OWNER SIGNATURE: DATE: The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Sections 13.591, Subd. 1 and 2. 3 1 P a g e