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Home My WebLink About2020-06-17 EDA Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Wednesday, June 17, 2020 6:30 p.m. or shortly thereafter Join Zoom Meeting https://zoom.us/j/493922446 Meeting ID: 493 922 446 1-312-626-6799 (Audio Only) I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda IV. APPROVAL OF MINUTES 1. April 29, 2020 Special Meeting Minutes 2. May 20, 2020 Meeting Minutes V.BILLS AND COMMUNICATIONS 1. Bills a. None 2. Communications a. Business Feedback b. Email from A Home Enhanced VI. REPORTS 1. 2. Review of Presentation to Parks & Recreation Commission (6/3/2020) VII. OLD BUSINESS 1. VIII. NEW BUSINESS 1. Resolution #EDA 20-03 Establishing an Interstate Blue Logo Sign Pilot Program 2. s Revolving Loan and Grant Program 3. Resolution #EDA 20-05 Establishing a Newspaper Advertising Campaign to Support Local Businesses IX. ADJOURNMENT INFORMATIONAL MATERIALS None MEETING REMINDERS All Meetings via Zoom Videoconferenci CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING MINUTES April 29, 2020 6:30 p.m. Pursuant to due call and notice thereof, the City held a special meeting on April 29, 2020 at 6:30 p.m. I. CALL TO ORDER President Hanzal called the meeting to order at approximately 6:30 p.m. II. ROLL CALL PRESENT: President Jeff Hanzal Vice-President Jim Weatherhead Commissioner D. Love Commissioner Tom Wilharber Commissoner Michael Giovinazzo STAFF: City Administrator, EDA Executive Director, Mark Statz III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda Commissioner Love proposed to change the agenda to add two new items under New Business: 1) EDA visitation of other City boards 2) City Statue Motion by Commissioner Love, seconded by Vice President Weatherhead to approve the agenda with changes added. A roll call vote was taken. All in favor. Motion carried. IV. APPROVAL OF MINUTES Commissioner Love provided an opportunity for modifications to be made to the February 19, 2020 minutes. Motion by President Hanzal, seconded by Commissioner Giovinazzo to approve the minutes as amended. A roll call vote was taken. All in favor. Motion carried. V. BILLS AND COMMUNICATIONS City of Centerville EDA Meeting Minutes April 29, 2020 1. Bills a. None VI. REPORTS 1. Administrator Statz gave a report on general development activities around the city. Bayview Villas is still progressing and has approximately 2-3 lots left. Old Mill Estates has put Phase II on hold temporarily. We are working with them on some drainage issues and hope to resolve them shortly. We are anticipating permit applications from Mini Storage soon for building construction and utilities. We are still waiting to see permit applications from Atlas Villas Memory Care after they were informed by Anoka County of some design issues with their kitchen. The City Council had a workshop regarding the Block 7 project. More discussion is needed with the developer regarding the proposal, and should take place within the next week. The downtown street project is on hold right now due to Covid-19. CenterPoint has issued a policy stating that they will not go into homes unless it is an emergency. Gas mains need to be can get into homes to light pilot lights. VII. OLD BUSINESS 1. a. Professional Web/Social Media Assistance (i) Michele Koch Proposal (ii) Lonni Olson Proposal Ideas were discussed involving how to help local businesses using social media and website assistance. It was decided that the first goal would be to help businesses during Covid-19 shutdowns and highlight two businesses per week by hiring Michele Koch and Lonni Olson to b. Social Media Ads/Boosts Social Media Boosts were decided against until there was a chance to consult with Ms. Koch and Ms. Olson. Page 2 of 4 City of Centerville EDA Meeting Minutes April 29, 2020 c. Newspaper Ads The commission discussed the possibility of highlighting local businesses by taking out newspaper ads. d. Lowering Commercial Water Rates The commission decided that lowering water rates for commercial customers would not be well received by residential customers. e. Fete des Lacs Sponsorships The commission decided that it was too early to di f. Centerville Bucks/Cougar Cash The commission decided to table this discussion until more research was completed. g. License rebates (Liquor, tobacco, etc.) Motion by President Hanzal, seconded by Commissioner Giovinazzo to recommend to Council to prorate and rebate on-sale liquor license fees. A roll call vote was taken. All in favor. Motion carried. h. There was discussion regarding asking North Metro TV to help create short ads highlighting local businesses by visiting them and interviewing them with a few short questions. VIII.NEW BUSINESS 1. Visitation of other City boards There was discussion on building a collaboration between EDA, Parks & Recreation and Planning & Zoning in order for each committee to help support the others and foster more community engagement. 2. City Statue The possibility of long rang plans was discussed for a statue or other fixture to be installed as an identity for the community, show IX. Adjournment Page 3 of 4 City of Centerville EDA Meeting Minutes April 29, 2020 Motion by Vice-President Weatherhead, seconded by Commissioner Giovinazzo to adjourn the EDA meeting of April 29, 2020 at 8:33. A roll call vote was taken. All in favor. Motion carried. Page 4 of 4 CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Wednesday, May 20, 2020 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled Economic Development Authority meeting on May 20, 2020 at City Hall, 1880 Main Street. I. CALL TO ORDER President Hanzal called the meeting of the EDA to order at 6:30 p.m. II. ROLL CALL PRESENT: President Jeff Hanzal Vice-President Jim Weatherhead Commissioner, Michael Giovinazzo Commissioner, D. Love Commissioner, Tom Wilharber ABSENT: None STAFF: City Administrator, EDA Executive Director, Mark Statz III. APPROVAL OF AGENDA City Administrator Mark Statz presented an opportunity to add two items to the agenda. Motion by Commissioner Love, seconded by Commissioner Weatherhead to approve the agenda with changes. A roll call vote was taken. All in favor. Motion carried. IV.APPROVAL OF MINUTES No motion was made or seconded, however President Hanzal did call for a roll call vote to approve the minutes. The vote was 4 in favor and one abstention. The minutes are considered approved. V. BILLS AND COMMUNICATIONS 1. Bills (a) Chamber of Commerce Membership (b) Site Design, LLC, 1737 Main Street Site Rendering City of Centerville EDA Meeting Minutes May 20, 2020 Motion by Commissioner Weatherhead, seconded by Commissioner Giovinazzo to approve the bills as submitted. A roll call vote was taken. All in favor. Motion carried VI. REPORTS 1. City Hall is still closed to the public until further notice, but this may change due to elections in late June. City Council approved the listing agreement with Mr. Brass at 1737 Main Street. We are close to being able to perform the study for the Minnesota Technology Corridor. Council approved transferring only part of the funds asked for into a separate checking account. We are set up to receive reimbursement through FEMA for expenses incurred as a result of Covid- 19 such as Clorox wipes, Plexiglas for the front counter, a Zoom subscription, etc. and we are working to enter these expenses into a portal to receive funds. The Comprehensive Plan has been approved and we can now move forward with any amendments. Old Mill Estates was approved for a letter of credit reduction for Phase I. We are still holding $100,000 from them to do sidewalks, the trail, asphalt, etc. They are still in the development stage of Phase II, and are hoping to move forward this fall. Council had a late April work session regarding Block 7 and we will no longer be putting forward a deal that contains TIF financing. The developer is working on putting together a new proposal that would be agreeable to both parties. Centerville Storage is grading the property and should be applying for their building permit soon. Marsh Run, 3rd Addition: An easement agreement was approved by the City Council. With this agreement recorded, staff will be issuing a letter to the developer, allowing a full release of the letter of credit. Atlas Villas Memory Care: The owner is seeking additional bids to try to lower the cost. They are hoping to break ground this fall. Development Inquiries: An existing manufacturing business is looking to expand their facility. Community Engagement is a recent focus of the Council. There have been website updates, reader board topics and social media topics to help engage the community. From a list of 80 businesses, all have been called at least once, resulting in a list of 35 emails. We are hoping for another round of emails, with a goal of 50 email addresses to start with. Page 2 of 5 City of Centerville EDA Meeting Minutes May 20, 2020 The Planning and Zoning Commission looked at a number of issues regarding driveways and parking on residential lots. Allowed residential driveway widths have been expanded from 24 feet to 32 feet max, depending on the size of your garage. Commercial driveways have also been expanded to 32 feet. This ordinance has only been seen by Council once, but will be up for a vote at the May 13, 2020 meeting. Second driveways are now allowed on corner lots to run to a building if the ordinance passes Council. them that they no longer have a lease with the City and their equipment needs to be removed. VII. Old Business 1. Presentation to Planning and Zoning Commission (6/2/2020) Commissioner Giovinazzo will make this presentation. 2. Presentation to Parks and Recreation Committee (6/3/2020) Commissioner Weatherhead will make this presentation. Motion by President Hanzal, seconded by Commissioner Love to appoint Commissioner Giovinazzo to attend the Planning and Zoning Commission meeting on June, 2, 2020 and Commissioner Weatherhead to attend the Parks and Recreation Committee meeting on June 3, 2020 to present the EDA Strategic Plan. A roll call vote was taken. All approved. Motion carried. 3. CenterStage There was discussion on the name CenterStage for the new campaign, and the probability of keeping it open only to businesses in Centerville. There was also discussion on highlighting all businesses before repeating them. There has been been featured. Motion by Commissioner Love, seconded by Commissioner Wilharber to approve the EDA 2020 Resolution establishing the CenterStage Business Spotlight Campaign. A roll call vote was taken. All in favor. Motion carried. Motion by Commissioner Love, seconded by Commissioner Wilharber to approve the proposed budget of $3,000, reallocating the funds set aside for rebranding. A roll call vote was taken. All approved. Motion carried. 4. Newspaper Discussion took place regarding a proposal from a local newspaper of a buy one/get on free offer to help promote local businesses. Conversation followed on whether to take out two half page ads over two weeks, (second week would be free) covering half of the local businesses each week, or Page 3 of 5 City of Centerville EDA Meeting Minutes May 20, 2020 taking out a full page ad listing all the businesses, with a second full page ad for free, or taking out smaller ads to spotlight the CenterStage business each week. More conversation regarding this will take place after checking with the newspaper to see if there are other options. VIII. NEW BUSINESS 1. Revolving Loan and Grant Program Administrator Statz stated that he had sent out information to two businesses. Discussion involved whether or not the program should be run on a cycle with due dates and review processes, and the possibility of re-advertising and loosening program parameters. Further discussion was tabled until the June 17, 2020 meeting. 2. New Business Welcome Package a. Commercial Welcome Package: Discussion took place regarding ideas for a New Business Welcome Package. Some ideas the commission proposed were to give away other coupons good for discounts at local businesses, supply refreshments at ribbon cutting ceremonies, and to welcome new businesses by highlighting them on CenterStage. Joining with the Quad Cities Chamber of Commerce for welcome packages, and having a Council member or EDA member take a new business owner out for lunch were other ideas that were shared. b. Residential Welcome Package: The Commission discussed creating a residential welcome package, and various ideas were shared for items to possibly include: A list of snow removal and parking ordinances, the trash pick-up schedule for their neighborhood, information on emergency services, maps for trails, businesses and the city, a CenterStage business booklet with coupons, and general information regarding other services such as churches, clubs, AA, counseling, etc. Also discussed was the possibility of a business donating half the cost of a pizza or other type of dinner, matched by the restaurant to offer a free meal to new residents. This could also be done with hair salons, tobacco stores, liquor stores, etc. 3. MNCAR Expo Discussion took place regarding whether or not to attend the Minnesota Commercial Association of Real Estate/Realtors (MNCAR) Expo, and whether or not share a booth with Anoka County Regional Economic Development (ACRED) for $40.00 per person or share the cost of a booth with other cities. Ideas were brought forth regarding showcasing the city by playing the new video on a continuous loop, bringing the 1737 Main Street Rendering, Lot 7 information, and all commercial lot availability and zoning information in a tri-fold pamphlet to hand out. Bringing a vertical banner was discussed and research on pricing will be researched. Having maps available, and sharing information about the loan and grant program, and downtown redevelopment was Page 4 of 5 City of Centerville EDA Meeting Minutes May 20, 2020 also suggested. It was decided to table the discussion until the next meeting until more research could be done. 4. Donation of 100 Masks Mayor Love worked with Xtreme Custom Apparel to create and purchase 100 masks with the Centerville logo. Commissioner Love would like give one mask for each staff member and committee member, and then donate the rest to the EDA to hand out to local businesses. Motion by President Hanzal, seconded by Commissioner Giovinazzo to accept donation of remaining masks from Mayor Love for the EDA to distribute to local businesses. A roll call vote was taken. Four in favor, Mayor Love abstained. IX. Adjournment Motion by President Hanzal, seconded by Commissioner Giovinazzo, to adjourn the meeting at 8:23. A roll call vote was taken. All approved. Motion carried. Page 5 of 5 Could depth in too is therapist. of year year? peoplemassage site every a other sign unless a it programs web notify up do every hiring to the loan improvements. licensed to put on to done won't the used be partner He listed it. very therapist about me blasts this deterrent downtown businesses of landlord to themCity a on meetings. downtown industrial very, help welding. It's the more the new email could number lots keepCenterville. massge retailto are it. names or of the money lot. zonedon Council pressure high. regardingmy from teach and and some EDA We for getting be tosee City license andget the too anything their see thehelpto small. great! to policy here is city. pay to tenants my help the parking lowered isto here inspections. business. EDA summer likelikelike want city like school theit be heard the cost my your like of spend like like with fire restaurants last people the notall to the tenants the process lovelove cost pave WouldWouldWould would fromWouldwiththe Everythingdrawhereyearlyhappywith2)to3)instead2)Wouldupcomingandthe DrWe RdChange RdI St1)NeverStStTheStWould AveAveMoreAveDoesAveWeAveKeep Ave1) Mill 20th20th20th20th21stCommerceMainMainMainMainProgress20thOld Design1865 and NameAddressComments Water2021 Autobody6885 Automotive7137 Floral Best Chiropractor1881 Industries2030 Construction7371 Companies7129Barrel1875Electric7087 Holdings7037 Landscaping6867 Welding7075 Carpenter's Business WitzelKnabeReadyNobleMidwestRumbleCentervilleSchlavinLiquorRivardVermeeschHanzal benefit. little stations. very harder gas with and They're destination. taxes a stores taxes. not high my friendly. it's liquor really pay city, to just pay business I just than through more fuel cities. of be pass to a other businesses taxes trucks just than isneeds 15 more sell with property taxes to need work have to 2)We3)CentervilleIReduce SLower Circle St1)Centerville Ave B MainGateway20th & #A 2016 Tools Asphalt6433 Technologies CenterMart1801InnovativeandArcade Mark Statz From:Laurel McGinnity <ahomeenhanced@gmail.com> Sent:Friday, June 12, 2020 9:01 AM To:Mark Statz Subject:Re: business help Caution:Thisemailoriginatedoutsideourorganization;pleaseusecaution. ThankyoufortheinfoMark. Itwasgoodtospeaktosomeonefromthecitywhorecognizessomeofmyefforts.SevenyearsagoItookachance, speculatedandmadeariskydecisiontomovemygift,decorstoretoCenterville.ThegrowthwashardandlongandI havehadmanybusinessandpersonalchallengesalongtheway. TodaymychallengeisTheCoronaVirus,tomorrowitwillbesomethingelse.tiredandreadytocallit!Whilethis communityofpeoplethatcontinuestocomeoutindrovestosupportmystoreisalsobeggingmetoremain open.Manyspeaktotheirfear,thatifIquitittherebemuchleftinCentervillethatisspecial. oftenheardovertheyears,yourstorebringsaGrandAvenuelevelofeleganceundeservingofthisI saythatridiculous! Idooffermycustomerslovelywelldisplayedproducts,inacharmingoldbuildingthatworthsomeadmiration.Ido givegreatcustomerserviceandalsothebestofmyself!Sadlythough,Ialsooftenhearthefrustratedstatement, Centervilledomorewiththiscutelittle IcannotdenytheirfrustrationasIalsowonderthesame? IexpectedthefuturegrowthofHugoanditssurroundingcommunitiestohavegrownfasterthanithas?ironicto methoughafteralltheseyearsfeelinglikeImconductingbusinessonanislandofnosupport,justwhenreadyto giveitup,finallyIgetalittleattentionfromthecity. IdosoappreciateyourkindwordsandIwillcontinuetohopeforabrighterfutureforthislittlecommunity.Imayor maynotstickitoutheremuchlongerbutgladIhaveofferedsomeformofinfluenceformorefuturegoodchanges tocome. Thanksagain, LaurelMcGinnity AHomeEnhanced 612.865.7565 OnJun11,2020,at5:27PM,MarkStatz<MStatz@centervillemn.com>wrote: Laurel, Thanksforreturningmycalltoday.happytohearthatyouhavewhatlookslikeaplanforkeeping yourbusinessinthedowntownbuilding,inoneformoranother.someinfoonthegrant programwehaveavailableforexteriorfaçadework,aswespokeabout.Asyoucansee,lightingwould definitelybeeligible.Iwillsendyoufulldetailsontheprogramonceyousendmethegeneral 1 descriptionofwhatyouwerethinkingofdoing.Iwanttooverwhelmyouwithabunchofinfothat relevanttoyourparticularcircumstances. XVI.BUILDINGFAÇADEGRANTS Inordertoencouragebuildingfaçadeimprovementsthataremoreaestheticinnature,grantsbetween $2,000and$5,000areavailableprovidedthereisa3:1matchofprivateinvestment.Forexample,to qualifyforagrantof$2,000,atotalof$8,000mustbespent.Fora$20,000project,themaximumof $5,000ingrantmoneymaybeawarded. Multiplegrantsarepermittedconsistentwiththeaboveoutlinedformula,butshallnotexceed$5,000 perproject,oratotalof$5,000perproperty,ina10yearperiod. Eligiblegrantexpendituresincluderepairing,replacingandinstallingof siding brickwork mansards cornices entrances exterior doors and windows decorative details awnings exterior lighting signage building identification Priortoincurringexpensesforwhichagrantissought,applicantsmusthavetheproposedwork approvedinwritingbytheCityEDAstaff.GrantmoniesarenotavailableforGrantswill bedistributeduponfinalinspectionbytheCityandsubmittalofapaidinvoice. From:MarkStatz Sent:Thursday,June11,20205:13PM To:'ahomeenhanced@gmail.com'<ahomeenhanced@gmail.com> Cc:'laurel.mcginnity@gmail.com'<laurel.mcginnity@gmail.com> Subject:businesshelp Laurel, PleasecallCarrietoseeifshecanhelpyouwithyourtransitiontoanoccasionalstore,etc. CarrieMikkonen BusinessAdvisor OpentoBusiness AnokaCounty Direct7634387315 cmikkonen@mccdmn.org https://www.mccdmn.org/opentobusiness https://www.anokacountysuccess.org/covid19anokacountybusinessresources/ 2 Mark Statz, PE City Administrator/Engineer City of Centerville 1880 Main St. Centerville, MN 55038 O: 651-429-3232 D: 651-792-7931 C: 651-775-5126 mstatz@centervillemn.com www.centervillemn.com @centervillemn 3 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: June 11, 2020 EDA VII.1 TITLE OF ISSUE: CenterStage Program Update BACKGROUND AND SUPPLEMENTAL INFORMATION: Staff will give an update on the first month of the CenterStage program. To date, 5 businesses have had social media posts created and promoted through the program and 3 videos have been produced and posted. The goal of 2 per week is proving difficult for a number of reasons, including coordination with busy business owners. We are addressing those issues by having a little longer list in front of our partners and letting them jump to the business owners who are more responsive, first. Please help us out by sharing and liking the social media posts on any of your own personal social media accounts. COST AND SOURCE(S) OF FUNDING: Costs previously approved. No change in cost structure. REQUESTED ACTION: No formal action requested. SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Info on CenterStage activities to date. Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Videos: Crista'sPawSpa157Views CornerExpress413Views Wiseguys85Views CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: June 11, 2020 EDA VIII. TITLE OF ISSUE: MNDOT Blue Logo Signs BACKGROUND AND SUPPLEMENTAL INFORMATION: See attached info. COST AND SOURCE(S) OF FUNDING: Up to $2,880 for 1 year - EDA General Fund REQUESTED ACTION: Motion to approve Resolution EDA 20-0 Establishing an Interstate Blue Logo Sign Pilot Program. SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: AyeNay ____ Staff memo/info Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Aswecontinuetosearchforwaystohelpourexistinglocalbusinesses,oneideathathassurfaced beforebutnotmovedforwardisapartnershipbetweentheEDAandbusinessestoaddtheirnamesand logostotheblue,interstatesigns.Currently,noneofourbusinessesusethisstrategy. Thesesignsnotifymotoristsoffood,gas,lodging,camping,attractionsandpharmacies.Businessesthat maybeeligiblewouldbe: Gas CircleKCornerExpress CenterMart Food WiseguysPizza AsianToGo CenterMart(SubShop) Pizza Korner Attractions/Camping WargoNatureCenter Pricingforthebluesignsisasshown(right).proposalwould betoofferourbusinessesa50%costshare.Thiswouldmeana potentialforupto8participantsat$360each=$2,880.Thiscould bedoneasapilotprogramwiththepotentialtocontinuein subsequentyearsbasedonparticipationandfeedbackfromthe businessesastowhethertheyfeelithashelped. THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CENTERVILLE, MINNESOTA RESOLUTION #EDA 20-0 RESOLUTION ESTABLISHING AN INTERSTATE BLUE LOGO SIGN PILOT PROGRAM WHEREAS, a primary purpose of the Economic Development Authority is to promote existing businesses within the city of Centerville. WHEREAS, during the COVID-19 Pandemic, many businesses have been forced to close, restrict access or have otherwise been hurt by the associated economic downturn, especially those in the hospitality and service industries. WHEREAS, in an effort to help local businesses promote our local business through these unprecedented times, the EDA feels that providing a cost share program to encourage the use of the Interstate Blue Logo Signs for food, gas, lodging, attractions and camping businesses would be beneficial to those business and the local economy as a whole. WHEREAS, attracting motorists to leave the interstate and do business in Centerville is not only beneficial to the businesses advertising on the signs, but can also provide other businesses with increase visibility to consumers. NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of Commissioners, of the Centerville EDA hereby establishes a one-year, Interstate Blue Logo Sign pilot program, offering a 50% cost share for businesses wishing to place their logo on such a sign. Businesses eligible for the program must first be eligible for placement on the signs according to thelines. The cost share would be limited to one logo sign on the highway and two directional signs on the ramps, for a total cost of $720 ($360 match). The program may be extended additional years by action of the EDA. THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS RESOLTUION WAS _____________________ IN FAVOR OF THE RESOLUTION. PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville th this 17 day of June, 2020. Jeff Hanzal, President Attest: Secretary, Teresa Bender CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: June 11, 2020 EDA VIII.2 TITLE OF ISSUE: Resolution EDA 20-04 Revising the EDA's Revolving Loan and Grant Program Guidelines BACKGROUND AND SUPPLEMENTAL INFORMATION: With the EDA's Revolving Loan and Grant Program (RLGP) having been in place for close to a year, now, with only on applicant, staff thought it may be time to revisit the program. Through feedback from business owners and staff's exploration of the various potential projects, we have formulated some potential changes to the program's guiding documents. We hope these changes will clarify and simplify the application materials, expand the eligible project base and spark renewed interest in the program. See attached mark-up of the Revolving Loan and Grant Program. The EDA should discuss the merits of these proposed changes. COST AND SOURCE(S) OF FUNDING: Costs vary. Source - City/County Housing and Redevelopment Funds REQUESTED ACTION: Motion to approve Resolution EDA 20-04 Revising the EDA's Revolving Loan and Grant Program Guidelines. SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: AyeNay ____ Mark-up of existing RLGP documents; Other (specify) ____________ _____ Clean copy of proposed RLGP documents _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET SEPTEMBERJUNE, 20192020 1 CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND market share and physical appearance. Working with the City, the CDEVA CVEDA has designed a Revolving Loan and Grant Program (RLGP). The RLGP is aimed at improving the utility and appearance of downtown businesses while encouraging the leveraging of private investment which would otherwise not occur. The program provides front-end financinghas two distinct components: Loan and Grant. for small loans at below market interest rates for up to a 10-year term. The program is designed to address business redevelopment needs throughout the city. The Centerville CVEDARLGP established a public/private partnership where an initial $50,000 public loan/grant pool Housing and Redevelopment Authority funds, administered by Anoka County. to assist businesses to make eligible physical improvements. The program is designed to address redevelopment needs throughout the city. This pool of money may be used for either the Grant or Loan Portion of the program. The program provides loans up to $20,000 for a term of up to 10 years at two percent interest. Revolving loan program participation requires a 100 percent match by the business, through an authorized participating financial institution. To be eligible, a financial institution must be willing to lend to businesses within the corporate limits of the City of Centerville. Financial institutions have agreed to service the loans and to provide their match at a competitive market interest rate. The Centerville RLGP is operated with the following program goals: Provide affordable financing or grant funds to small businesses for program eligible real estate improvements. Target downtown businesses along Centerville Road and Main Street with other businesses located in the City also being eligible. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For businesses within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require businesses receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. This includes code related to signage, parking, screening and other exterior regulations. Whether the interior of the building needs to come into compliance with the building code shall be governed by the building code and related city code. Structures which qualify as legal nonconformities may remain. The program is administered by the EDA under the guidance of policies set by the City Council and EDA. The City of Centerville EDA is responsible for: 2 - Location of property to be improved; - Improvement scope; - Compliance with City Codes and Ordinances. Determining schedule for submission of competitive funding applications and scoring criteria for the award of loans and grants when there are more applications than funds. Distribution of program information to area businesses. Referral of applicants to local banks. Participation agreements with local banks. Financial institutions are responsible for: Receipt and processing of loan applications. RLGP. Determining loan amortization period. Approval or disapproval of loan subject to City certification as to program eligibility. Collection of lien waivers and other documents deemed necessary for loan disbursements. Distribution of loan funds subject to final approval by the CVEDA. Distribution of principal and interest payments to the CVEDA RLGP. On default, the claims of the CVEDA are subordinate to the financial institution. II. PROGRAM OBJECTIVE The purpose of the RLGP is to provide businesses with an incentive to increase their investment in the community by making structural and beautification improvements to existing buildings. The RLGP will not provide working capital loans nor fund operating expenses. III. PHYSICAL BOUNDARIES OF PROGRAM AREA To be eligible for the RLGP, the property must be located within the City limits. IV. ELIGIBLE COSTS (LOAN) Formatted: Indent: Left: 0", First line: 0", Tab stops: Not The following are eligible expenses for either the public or private sector portion of the loan. at 0.38" Generally, all work on front and sides of business buildings facing public streets Cleaning, painting and staining of exterior surfaces Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting 3 New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes Parking lot improvements Handicapped accessibility improvements Health and safety improvements The following may be funded with the private sector (matching) loan portion only; Generally, all interior fixed improvements including the repair and/or construction of walls, ceilings, floors, lighting, windows, doors and entrances Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant business fixtures Roof repairs and replacement V. INELIGIBLE COSTS The following costs are ineligible: Refinancing of existing debts Non-fixed improvements Working capital Inventory improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure IVI. PROGRAM ADMINISTRATION AND STRUCTURE Administration will be shared by the EDA and participating financial institutions. monitor their compliance. Director and Assistant Treasurer. 4 Servicing of RLGP loans shall be administered by local banks and savings and loans which make application to the EDA. All such institutions must be within 15 miles of the corporate limits of the City. Formatted: Indent: Left: 0", First line: 0", Tab stops: Not at 0.38" The RLGP will continue to operate as a public/private sector partnership. The financial base of $50,000 for the public share of RLGP funds will come from Housing and Redevelopment Authority funds, administered by Anoka County on behalf of the City. The fund will be replenished by an annual contribution of $10,000 from HRA income and any be interest and principal repayments resulting from outstanding the initial $50,000 of loans. X. IMPROVEMENT REVIEW PROCESS Prior to being given loan or grant approval, the applicant shall receive a positive recommendation from the CVEDA. The EDA shall review proposed plans and the existing exterior condition of the property being improved. The EDA shall base its recommendation applicable, design guidelines. The applicant may appeal any recommendation of the EDA to the City Council. In the event of limited funds, priority will be given to projects which score the XI. CONTRACTING AND CONSTRUCTION The applicant shall prepare or have prepared a detailed Scope of Work, which will also be the participating financial institution (for loan projects). The Scope of Work shall include: A detailed description of the work to be undertaken; Estimates of the quantity and materials to be used in the project; Qualified licensed contractor(s) The cost of having the Scope of Work prepared shall be reimbursable to the applicant from the loan or grant proceeds. No RLGP loan or grant will be approved until an adequate Scope of Work/Bidding Document is submitted and approved by designated EDA staff. The applicant must receive and submit at least two itemized competitive bids for all work to be completed and materials to be purchased with the loan or grant funds. The bids will be reviewed and filed by the city (grant program) or financial institution (loan program) to establish that they are competitive and address the work identified in the Scope of Work. The city or financial institution may waive the requirement for two competitive bids if it is impractical to obtain a second bid. The EDA, through the City Building Inspector, shall monitor the quality and progress of all work funded through the Program. Request(s) for payment (up to three partial payments and one final payment) by the applicant for completed work and supplied materials shall be in writing to the financial institution (or city, for grant-only projects). Partial payments shall not exceed 90 percent of the total project amount. The final payment shall be held until a certificate of completion is obtained from the City and submitted to the financial institution. 5 Upon submission and approval of a written request for the release of loan funds, designated EDA staff will, in writing, authorize the financial institution to release the requested funds. All work must be inspected by the City Building Inspector to ensure conformance with code and must be verified for proper completion by City staff to ensure compliance with specifications prior to final payment. The final inspection cannot be scheduled until all permits taken out have been signed off by field inspectors. Upon satisfactory completion, a certificate of completion will be granted. All work must be completed within 12 months of issuance of a building permit unless written permission of an extension is granted by designated EDA staff and financial institution (for loan projects). This action does not constitute an extension to any other deadlines imposed by permits or other regulation. All eligible improvement work performed pursuant to an approved RLGP loan or grant must provide a 12-month warranty from the date of accepted completion by the loan recipient and the EDA. This warranty must cover the quality of materials used and workmanship in performing the work. This warranty is the responsibility of the recipient and shall meet the requirements and definitions in MN State Statute, Chapter 327A. 6 Formatted: Indent: Left: 0", First line: 0", Tab stops: Not VII. PARTICIPATION AND FUNDINGLOAN PROGRAM at 0.5" The RLGP will continue to operate as a public/private sector partnership. The financial base of the public share of RLGP funds will be interest and principal repayments resulting from the initial $50,000 of loans. The fund will continue toLoan portion of the RLGP will provide one-half of each small business loan up to a maximum of $20,000 (from the fund) at an interest rate of two percent, provided that funds are available. Multiple loans may be made to businesses, provided that the principal balance does not exceed $20,000 (from the fund) at any time, and also provided that all payments of principal and interest are current. Local banks will execute participation agreements with the EDA to carry out their participation in accord with these guidelines. VIII. LOAN STRUCTURE A. The RLGP shall provide a 100% match to private loans up to a maximum amount of $20,000 RLGP participation. B. The interest rate of the RLGP loan shall be two percent per annum. C. The RLGP loan shall be amortized over a term not to exceed 10 years but shall, at the option of either the lending institution or the business, be renegotiable at the end of each three-year period, but no loan including extensions shall exceed 10 years. In no event shall the interest rate on the RLGP loan change from two percent per annum. D. RLGP loans in the amount of $8,000 or greater must be fully secured with a perfected security interest as determined by the lender. E. The City subordinates its position on the RLGP loan to that of the lending institution. VIIX. UNDERWRITING STANDARDS A. Small and medium sized commercial buildings are defined as those buildings whose gross square footage does not exceed 30,000 square feet. B. Businesses receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Types of businesses receiving RLGP loans shall be legal permitted or legal conditional uses within their respective zoning districts. D. RLGP loans shall be made to fee owners or recorded contract for deed vendees. VIIIX. FINANCIAL GUIDELINES A. Applicants shall demonstrate a ratio of net operating income (NOI) to debt service of 1.1:1. NOI = Gross property income less operating expenses and real estate taxes, but not including mortgage payments, income tax depreciation or non-operating expenses. B. Participating financial institutions shall use customary lending practices in determining eligibility for RLGP loans so as to ensure repayment of principal. 7 C. The property shall not be delinquent in the payment of property taxes and special assessments, and shall not become delinquent during the term of the loan. If taxes shall become delinquent, the loan may be called at the option of the financial institution if the delinquency is not remedied in a reasonable time frame. D. The structure shall be fully insured during the term of the loan with the lending institution and City named as mortgagor or covered under a loss payee clause endorsement. E. No loan shall exceed 80 percent of the estimated market value of the property to be rehabilitated upon completion of the rehabilitation, less the principal balance of any prior mortgage existing on the property at the time the loan is made; as required by MSA 469.184, Subd. 4(3). F. All out-of-pocket loan application expenses shall be the responsibility of the applicant. No other fees shall be charged. IXXI. ANNUAL REPORTING Within 90 days of filing federal tax statements, businesses receiving loans shall annually submit to the lending institution the following three items: A. Proof of non-delinquency of property tax payments; B. Profit/loss statement from Schedule C of federal tax statements; and C. Personal financial statement satisfactory to the lender. Participating lending institutions shall annually report to the EDA by March 1 of each year the status of the RLGP loan. The annual report shall include the status and balance of each loan as of December 31 of the previous year. XII. IMPROVEMENT REVIEW PROCESS Prior to being granted loan approval, the applicant shall receive a positive recommendation from the CVEDA. The EDA shall review proposed plans and the existing exterior condition of the property being improved. The Subcommittee shall base its recommendation upon the projects consistency with the Design Guidelines. The applicant may appeal any recommendation of the EDA to the City Council. In the event of limited funds, priority will be given to projects which XIII. CONTRACTING AND CONSTRUCTION The applicant shall prepare and have prepared a detailed Scope of Work, which will also be the participating financial institution. The Scope of Work shall include: A detailed description of the work to be undertaken; Estimates of the quantity and materials to be used in the project; Qualified licensed contractor(s) 8 The cost of having the Scope of Work prepared shall be reimbursable to the applicant from the loan proceeds. No RLGP loan will be approved until an adequate Scope of Work/Bidding Document is submitted and approved by designated EDA staff. The applicant must receive and submit at least two itemized competitive bids for all work to be completed and materials to be purchased with the loan funds. The bids will be reviewed and filed by the financial institution to establish that they are competitive and address the work identified in the Scope of Work. The EDA, through the City Building Inspector, shall monitor the quality and progress of all work funded through the Program. Request(s) for payment (up to three partial payments and one final payment) by the applicant for completed work and supplied materials shall be in writing to the financial institution. Partial payments shall not exceed 90 percent of the total loan amount. The final payment shall be held until a certificate of completion is obtained from the City and submitted to the financial institution. Upon submission and approval of a written request for the release of loan funds, designated EDA staff will, in writing, authorize the financial institution to release the requested funds. All work must be inspected by the City Building Inspector to ensure conformance with code and must be verified for proper completion by City staff to ensure compliance with specifications prior to final payment. The final inspection cannot be scheduled until all permits taken out have been signed off by field inspectors. Upon satisfactory completion, a certificate of completion will be granted. All work must be completed within 12 months of issuance of a building permit unless written permission of an extension is granted by designated EDA staff and financial institution. This action does not constitute an extension to any other deadlines imposed by permits or other regulation. All eligible improvement work performed pursuant to an approved RLGP loan must provide a 12-month warranty from the date of accepted completion by the loan recipient and the EDA. This warranty must cover the quality of materials used and workmanship in performing the work. This warranty is the responsibility of the recipient and shall meet the requirements and definitions in MN State Statute, Chapter 327A. XIIV. LOAN DISBURSEMENTS Loan funds shall be released by the financial institution, but not before written approval from the EDA is provided, and an RLGP check is issued. A minimum of 10 percent of the total loan will be retained until all work is completed, inspected, and approved, as evidenced by current certificate of completion. XIIIV. IMPROVEMENTS COMPLETED PRIOR TO LOAN CLOSING (hazardous code deficiencies, etc.) and the following steps are taken: Applicant must fill out a loan application with the financial institution. Applicant must submit a written request to the financial institution describing the need. Applicant must receive written permission from both the EDA and the financial institution. 9 If the above conditions have been met, the applicant may proceed using his own funds or and the loan has been closed. XIV. ELIGIBLE COSTS (LOAN PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the loan. Generally, all work on front and sides of business buildings facing public streets Cleaning, painting and staining of exterior surfaces Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes Parking lot improvements Handicapped accessibility improvements Health and safety improvements The following may be funded with the private sector (matching) loan portion only; Any of the items listed as public sector loan-eligible, above. Generally, all interior fixed improvements including the repair and/or construction of walls, ceilings, floors, lighting, windows, doors and entrances Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant business fixtures Roof repairs and replacement XV. INELIGIBLE COSTS (LOAN PROGRAM) The following costs are ineligible: Refinancing of existing debts Non-fixed improvements Working capital 10 Inventory improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure XVI. BUILDING FAÇADE GRANT PROGRAMS In order to encourage building façade and streetscape improvements that are more aesthetic in nature, grants between $2,000 and $5,000 are available provided there is a 32:1 match of private investment. For example, to qualify for a grant of $2,000, a total of $86,000 must be spent. For a $2015,000 project, the maximum of $5,000 in grant money may be awarded. Multiple grants are permitted consistent with the above outlined formula, but shall not exceed $5,000 per project, or a total of $5,000 per property, in a 105-year period. XVII. ELIGIBLE COSTS (GRANT PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the grant. Eligible grant expenditures include repairing, replacing and installing of siding brickwork mansards cornices entrances exterior doors and windows decorative details awnings exterior lighting signage building identification Formatted: Space Before: 0 pt Generally, all work on front and sides of business buildings facing public streets Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Formatted: Normal, Space Before: 6 pt Building identification Streetscape costs on private property Landscaping visible from the street Formatted: Normal, Space Before: 6 pt Decks or patios used for business purposes 11 The following may be funded with the private sector (matching) funds portion only; Any of the items listed as grant-eligible, above. Parking lot improvements Handicapped accessibility improvements Health and safety improvements XV. INELIGIBLE COSTS (GRANT PROGRAM) The following costs are ineligible: Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant business fixtures Roof repairs and replacement Formatted: Space Before: 6 pt Refinancing of existing debts Non-fixed improvements Working capital Inventory improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure Prior to incurring expenses for which a grant is sought, applicants must have the proposed work Grants will be distributed upon final inspection by the City and submittal of a paid invoice. 12 CENTERVILLE REVOLVING LOAN PROGRAM APPLICATION FORM I. APPLICANT INFORMATION Home Address: Phone: ________________ E-Mail Address: Name of Business: Business Address: Phone: ________________ Business Structure: _____ Sole Proprietorship _____ Partnership (all partners must sign this application) _____ Corporation (list officers on separate sheet) Type of Business (describe): II. PROPERTY INFORMATION Property Owner: Address: Phone: ________________ E-Mail Address: Does the applicant business occupy the total building? Yes _____ No _____ 13 If NO, what percentage does the applicant business occupy and what occupies the balance of space? __________________________________________________________________ __________________________________________________________________ III. REHABILITATION PROPOSED Briefly describe the proposed work and purpose. Exterior: Interior: *Note: A detailed Scope of Work document is required prior to approval. IV. BUILDING INSPECTION Building owner grants permission for the city inspector to inspect all work to be performed as outlined in Scope of Work. _______________________________________ _______________________ Signature of Owner Date V. FINANCIAL INSTITUTION INFORMATION Name: Address: Loan Officer: Phone: ___________________________________________ ____________________ ___________________________________________ ____________________ 14 2% REVOLVING LOAN PROGAM SCOPE OF WORK See pages 3 and 4 of the Guidelines and Regulations Handbook for information on eligible expenses. PROGRAM ELIGIBLE EXPENSES Item Amount 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL $ AMOUNT REQUESTED FROM EDA $ AMOUNT REQUESTED FROM BANK $ Note: Wall and floor finishes and tenant business fixtures may be funded with the private sector (matching) loan portion only. 15 CITY OF CENTERVILLE EDA REVOLVING LOAN PROGRAM OWNER AGREEMENT Owner Certification DATE: OWNER: ADDRESS: PROPERTY ADDRESS TO BE REHABILITATED: BUSINESS NAME(S): As owner of the above property, I hereby agree that I will adhere to the following conditions of the City of Centerville EDA Revolving Loan Program (the 1. Each loan from the Program will be requested on an individual property and will not exceed one-half the cost of the eligible building improvement or $20,000, which is less. 2. It is understood that the loan from the Program is for contract construction and is only for eligible expenses. No refinancing and no acquisition will be done utilizing the City of Centerville EDA loan. 3. Hazard insurance will be maintained on the property at all times in an amount sufficient to cover the full amount of the loan and will be paid by myself and will not be paid out of the loan proceeds. 4. At least two detailed and legible competitive bids based upon a work specification prepared by the owner and approved by a participating financial institution prior to approval will be submitted. 16 5. Change orders will be issued only with the written approval of the City of Centerville EDA staff. No change order will be issued decreasing the private loans such that the private loan is less than the loan from the CVEDA Revolving Loan Fund. 6. I agree to abide by the regulations as listed, and the City of Centerville EDA Revolving Loan Program Handbook. Upon failure to comply with any or part of the above, the City of Centerville EDA may enforce the Revolving Loan Program and note/lien through any lawful suit or action as permitted under the laws of the State of Minnesota. 7. I understand that any inspection made by the City of Centerville under this program, and it is not intended to represent or warrant the condition of the premises. 8. I further understand that making application in no way insures approval of loans or guarantees funding. 9. City and my financial institution. 10. I understand any work performed prior to specific written approval from both the financial institution and the City will be considered ineligible unless otherwise waived in writing by the City EDA and the financial institution according to the guidelines. Fee Owner/Contract Purchaser: Signature Print Name Witness Date 17 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM BUILDING FAÇADE GRANT APPLICATION Business Owner(s): Business Name: Business Address: Phone: Qualifying work description: Total cost of project (attach detailed bid): Facade Improvement(s): Facade Improvement Cost: Grant Amount Requested: _____________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA Authorizing Grant Date 18 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM BUILDING FAÇADE GRANT REIMBURSEMENT REQUEST Business Owner(s): Business Name: Business Address: Phone: Qualifying project work complete (this request): Cost of work (this request): Grant amount requested (this request): Total project cost to date (including this request): Total grant reimbursed (including this request): I hereby acknowledge that the facade work and/or materials referenced above have been completed and paid for at the above address, and documentation for that work is attached. _____________________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA, Date Authorizing Reimbursement 19 Centerville Revolving Loan & Grant Program Rating Criteria The following criteria are eligible expenditures of Loan and Grant funds. In the case of multiple qualifying applications for the program, the applications will be ranked according to their conformance with the following rating scale. Centerville Revolving Loan & Grant Program Rating Criteria Improvement Type Priority List 1 Repairing, replacing, or installing cornices, entrances, windows, decorative details, awnings and exterior lighting 2 Sign removal, repairing or replacement 3 New signage 4 Streetscape or landscape improvements on private property 5 Handicapped accessibility improvements 6 Health and safety improvements 7 Parking lot improvements 8 Cleaning, painting and staining of exterior surface 9 Building identification 10 Decks or patios used for business purposes 20 CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET JUNE, 2020 1 CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND The Centerville Economic Development Authorndeavors to support a program of city revitalization. This effort is aimed at strengthening the cityin terms of market share and physical appearance. Working with the City, the CVEDA has designed a Revolving Loan and Grant Program (RLGP). The RLGP is aimed at improving the utility and appearance of downtown businesses while encouraging the leveraging of private investment which would otherwise not occur. The program has two distinct components: Loan and Grant. The program is designed to address business redevelopment needs throughout the city. The Centerville CVEDA established an initial $50,000 loan/grant pool, through an earmark of the unds, administered by Anoka County. This pool of money may be used for either the Grant or Loan Portion of the program. The Centerville RLGP is operated with the following program goals: Provide affordable financing or grant funds to small businesses for program eligible real estate improvements. Target downtown businesses along Centerville Road and Main Street with other businesses located in the City also being eligible. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For businesses within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require businesses receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. This includes code related to signage, parking, screening and other exterior regulations. Whether the interior of the building needs to come into compliance with the building code shall be governed by the building code and related city code. Structures which qualify as legal nonconformities may remain. The program is administered by the EDA under the guidance of policies set by the City Council and EDA. The City of Centerville EDA is responsible for: Determining individual appli - Location of property to be improved; - Improvement scope; - Compliance with City Codes and Ordinances. Determining schedule for submission of competitive funding applications and scoring criteria for the award of loans and grants when there are more applications than funds. Distribution of program information to area businesses. 2 Referral of applicants to local banks. Participation agreements with local banks. Financial institutions are responsible for: Receipt and processing of loan applications. Provision of matching loan funds at least equa RLGP. credit risk and required collateral. Determining loan amortization period. Approval or disapproval of loan subject to City certification as to program eligibility. Collection of lien waivers and other documents deemed necessary for loan disbursements. Distribution of loan funds subject to final approval by the CVEDA. Distribution of principal and interest payments to the CVEDA RLGP. On default, the claims of the CVEDA are subordinate to the financial institution. II. PROGRAM OBJECTIVE The purpose of the RLGP is to provide businesses with an incentive to increase their investment in the community by making structural and beautification improvements to existing buildings. The RLGP will not provide working capital loans nor fund operating expenses. III. PHYSICAL BOUNDARIES OF PROGRAM AREA To be eligible for the RLGP, the property must be located within the City limits. IV. PROGRAM ADMINISTRATION AND STRUCTURE Administration will be shared by the EDA and participating financial institutions. ll maintain and update program guidelines and monitor their compliance. Director and Assistant Treasurer. Servicing of RLGP loans shall be administered by local banks and savings and loans which make application to the EDA. All such institutions must be within 15 miles of the corporate limits of the City. The RLGP will operate as a public/private sector partnership. The financial base of $50,000 for the public share of RLGP funds will come from Housing and Redevelopment Authority funds, administered by Anoka County on behalf of the City. The fund will be replenished by an annual contribution of $10,000 from HRA income and any interest and principal repayments resulting from outstanding loans. 3 V. IMPROVEMENT REVIEW PROCESS Prior to being given loan or grant approval, the applicant shall receive a positive recommendation from the CVEDA. The EDA shall review proposed plans and the existing exterior condition of the property being improved. The EDA shall base its recommendation objectives and city code, including, where applicable, design guidelines. The applicant may appeal any recommendation of the EDA to the City Council. In the event of limited funds, priority will be given to projects which score the ication scoring worksheet. VI. CONTRACTING AND CONSTRUCTION The applicant shall prepare or have prepared a detailed Scope of Work, which will also be the Work will be submitted to the CVEDA and the participating financial institution (for loan projects). The Scope of Work shall include: A detailed description of the work to be undertaken; Estimates of the quantity and materials to be used in the project; Qualified licensed contractor(s) The cost of having the Scope of Work prepared shall be reimbursable to the applicant from the loan or grant proceeds. No RLGP loan or grant will be approved until an adequate Scope of Work/Bidding Document is submitted and approved by designated EDA staff. The applicant must receive and submit at least two itemized competitive bids for all work to be completed and materials to be purchased with the loan or grant funds. The bids will be reviewed and filed by the city (grant program) or financial institution (loan program) to establish that they are competitive and address the work identified in the Scope of Work. The city or financial institution may waive the requirement for two competitive bids if it is impractical to obtain a second bid. The EDA, through the City Building Inspector, shall monitor the quality and progress of all work funded through the Program. Request(s) for payment (up to three partial payments and one final payment) by the applicant for completed work and supplied materials shall be in writing to the financial institution (or city, for grant-only projects). Partial payments shall not exceed 90 percent of the total project amount. The final payment shall be held until a certificate of completion is obtained from the City and submitted to the financial institution. Upon submission and approval of a written request for the release of loan funds, designated EDA staff will, in writing, authorize the financial institution to release the requested funds. All work must be inspected by the City Building Inspector to ensure conformance with code and must be verified for proper completion by City staff to ensure compliance with specifications prior to final payment. The final inspection cannot be scheduled until all permits taken out have been signed off by field inspectors. Upon satisfactory completion, a certificate of completion will be granted. 4 All work must be completed within 12 months of issuance of a building permit unless written permission of an extension is granted by designated EDA staff and financial institution (for loan projects). This action does not constitute an extension to any other deadlines imposed by permits or other regulation. All eligible improvement work performed pursuant to an approved RLGP loan or grant must provide a 12-month warranty from the date of accepted completion by the loan recipient and the EDA. This warranty must cover the quality of materials used and workmanship in performing the work. This warranty is the responsibility of the recipient and shall meet the requirements and definitions in MN State Statute, Chapter 327A. VII. LOAN PROGRAM The Loan portion of the RLGP will provide one-half of each small business loan up to a maximum of $20,000 (from the fund) at an interest rate of two percent, provided that funds are available. Multiple loans may be made to businesses, provided that the principal balance does not exceed $20,000 (from the fund) at any time, and also provided that all payments of principal and interest are current. Local banks will execute participation agreements with the EDA to carry out their participation in accord with these guidelines. VIII. LOAN STRUCTURE A. The RLGP shall provide a 100% match to private loans up to a maximum amount of $20,000 RLGP participation. B. The interest rate of the RLGP loan shall be two percent per annum. C. The RLGP loan shall be amortized over a term not to exceed 10 years but shall, at the option of either the lending institution or the business, be renegotiable at the end of each three-year period, but no loan including extensions shall exceed 10 years. In no event shall the interest rate on the RLGP loan change from two percent per annum. D. RLGP loans in the amount of $8,000 or greater must be fully secured with a perfected security interest as determined by the lender. E. The City subordinates its position on the RLGP loan to that of the lending institution. IX. UNDERWRITING STANDARDS A. Small and medium sized commercial buildings are defined as those buildings whose gross square footage does not exceed 30,000 square feet. B. Businesses receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C.Types of businesses receiving RLGP loans shall be legal permitted or legal conditional uses within their respective zoning districts. D.RLGP loans shall be made to fee owners or recorded contract for deed vendees. 5 X. FINANCIAL GUIDELINES A. Applicants shall demonstrate a ratio of net operating income (NOI) to debt service of 1.1:1. NOI = Gross property income less operating expenses and real estate taxes, but not including mortgage payments, income tax depreciation or non-operating expenses. B. Participating financial institutions shall use customary lending practices in determining eligibility for RLGP loans so as to ensure repayment of principal. C. The property shall not be delinquent in the payment of property taxes and special assessments, and shall not become delinquent during the term of the loan. If taxes shall become delinquent, the loan may be called at the option of the financial institution if the delinquency is not remedied in a reasonable time frame. D. The structure shall be fully insured during the term of the loan with the lending institution and City named as mortgagor or covered under a loss payee clause endorsement. E. No loan shall exceed 80 percent of the estimated market value of the property to be rehabilitated upon completion of the rehabilitation, less the principal balance of any prior mortgage existing on the property at the time the loan is made; as required by MSA 469.184, Subd. 4(3). F. All out-of-pocket loan application expenses shall be the responsibility of the applicant. No other fees shall be charged. XI. ANNUAL REPORTING Within 90 days of filing federal tax statements, businesses receiving loans shall annually submit to the lending institution the following three items: A. Proof of non-delinquency of property tax payments; B. Profit/loss statement from Schedule C of federal tax statements; and C. Personal financial statement satisfactory to the lender. Participating lending institutions shall annually report to the EDA by March 1 of each year the status of the RLGP loan. The annual report shall include the status and balance of each loan as of December 31 of the previous year. XII. LOAN DISBURSEMENTS Loan funds shall be released by the financial institution, but not before written approval from the EDA is provided, and an RLGP check is issued. A minimum of 10 percent of the total loan will be retained until all work is completed, inspected, and approved, as evidenced by current certificate of completion. XIII. IMPROVEMENTS COMPLETED PRIOR TO LOAN CLOSING Such improvements are not eligible unless the a (hazardous code deficiencies, etc.) and the following steps are taken: 6 Applicant must fill out a loan application with the financial institution. Applicant must submit a written request to the financial institution describing the need. Applicant must receive written permission from both the EDA and the financial institution. If the above conditions have been met, the applicant may proceed using his own funds or interim financing from a financial institution. Ho Scope of Work has been approved by the EDA and the loan has been closed. XIV. ELIGIBLE COSTS (LOAN PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the loan. Generally, all work on front and sides of business buildings facing public streets Cleaning, painting and staining of exterior surfaces Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes Parking lot improvements Handicapped accessibility improvements Health and safety improvements The following may be funded with the private sector (matching) loan portion only; Any of the items listed as public sector loan-eligible, above. Generally, all interior fixed improvements including the repair and/or construction of walls, ceilings, floors, lighting, windows, doors and entrances Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant business fixtures Roof repairs and replacement 7 XV. INELIGIBLE COSTS (LOAN PROGRAM) The following costs are ineligible: Refinancing of existing debts Non-fixed improvements Working capital Inventory n labor and performance for construction of improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure XVI. GRANT PROGRAM In order to encourage building façade and streetscape improvements that are more aesthetic in nature, grants between $2,000 and $5,000 are available provided there is a 2:1 match of private investment. For example, to qualify for a grant of $2,000, a total of $6,000 must be spent. For a $15,000 project, the maximum of $5,000 in grant money may be awarded. Multiple grants are permitted consistent with the above outlined formula, but shall not exceed $5,000 per project, or a total of $5,000 per property, in a 5-year period. XVII. ELIGIBLE COSTS (GRANT PROGRAM) The following are eligible expenses for either the public or private sector (matching) portion of the grant. Generally, all work on front and sides of business buildings facing public streets Façade masonry repairs Repairing, replacing and installing of cornices, entrances, exterior doors and windows, decorative details, awnings and exterior lighting New signage Sign removal, repairing and replacement Building identification Streetscape costs on private property Landscaping visible from the street Decks or patios used for business purposes 8 The following may be funded with the private sector (matching) funds portion only; Any of the items listed as grant-eligible, above. Parking lot improvements Handicapped accessibility improvements Health and safety improvements XVIII. INELIGIBLE COSTS (GRANT PROGRAM) The following costs are ineligible: Heating, ventilating and air conditioning improvements Wall and floor finishes and tenant business fixtures Roof repairs and replacement Refinancing of existing debts Non-fixed improvements Working capital Inventory n labor and performance for construction of improvements) Internal improvements to mixed use buildings that involve the residential portion of the structure Prior to incurring expenses for which a grant is sought, applicants must have the proposed work approved in writing by the City EDA Grants will be distributed upon final inspection by the City and submittal of a paid invoice. 9 CENTERVILLE REVOLVING LOAN PROGRAM APPLICATION FORM I. APPLICANT INFORMATION Home Address: Phone: ________________ E-Mail Address: Name of Business: Business Address: Phone: ________________ Business Structure: _____ Sole Proprietorship _____ Partnership (all partners must sign this application) _____ Corporation (list officers on separate sheet) Type of Business (describe): II. PROPERTY INFORMATION Property Owner: Address: Phone: ________________ E-Mail Address: Does the applicant business occupy the total building? Yes _____ No _____ 10 If NO, what percentage does the applicant business occupy and what occupies the balance of space? __________________________________________________________________ __________________________________________________________________ III. REHABILITATION PROPOSED Briefly describe the proposed work and purpose. Exterior: Interior: *Note: A detailed Scope of Work document is required prior to approval. IV. BUILDING INSPECTION Building owner grants permission for the city inspector to inspect all work to be performed as outlined in Scope of Work. _______________________________________ _______________________ Signature of Owner Date V. FINANCIAL INSTITUTION INFORMATION Name: Address: Loan Officer: Phone: ___________________________________________ ____________________ ___________________________________________ ____________________ 11 2% REVOLVING LOAN PROGAM SCOPE OF WORK See pages 3 and 4 of the Guidelines and Regulations Handbook for information on eligible expenses. PROGRAM ELIGIBLE EXPENSES Item Amount 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL $ AMOUNT REQUESTED FROM EDA $ AMOUNT REQUESTED FROM BANK $ Note: Wall and floor finishes and tenant business fixtures may be funded with the private sector (matching) loan portion only. 12 CITY OF CENTERVILLE EDA REVOLVING LOAN PROGRAM OWNER AGREEMENT Owner Certification DATE: OWNER: ADDRESS: PROPERTY ADDRESS TO BE REHABILITATED: BUSINESS NAME(S): As owner of the above property, I hereby agree that I will adhere to the following conditions of the City of Centerville EDA Revolving Loan Program (the 1. Each loan from the Program will be requested on an individual property and will not exceed one-half the cost of the eligible building improvement or $20,000, which is less. 2.It is understood that the loan from the Program is for contract construction and is only for eligible expenses. No refinancing and no acquisition will be done utilizing the City of Centerville EDA loan. 3. Hazard insurance will be maintained on the property at all times in an amount sufficient to cover the full amount of the loan and will be paid by myself and will not be paid out of the loan proceeds. 4. At least two detailed and legible competitive bids based upon a work specification prepared by the owner and approved by a participating financial institution prior to approval will be submitted. 13 5. Change orders will be issued only with the written approval of the City of Centerville EDA staff. No change order will be issued decreasing the private loans such that the private loan is less than the loan from the CVEDA Revolving Loan Fund. 6. I agree to abide by the regulations as listed, and the City of Centerville EDA Revolving Loan Program Handbook. Upon failure to comply with any or part of the above, the City of Centerville EDA may enforce the Revolving Loan Program and note/lien through any lawful suit or action as permitted under the laws of the State of Minnesota. 7. I understand that any inspection made by the City of Centerville under this program is for purposes of determining program, and it is not intended to represent or warrant the condition of the premises. 8. I further understand that making application in no way insures approval of loans or guarantees funding. 9. ecific, written approval from both the City and my financial institution. 10. I understand any work performed prior to specific written approval from both the financial institution and the City will be considered ineligible unless otherwise waived in writing by the City EDA and the financial institution according to the guidelines. Fee Owner/Contract Purchaser: Signature Print Name Witness Date 14 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT APPLICATION Business Owner(s): Business Name: Business Address: Phone: Qualifying work description: Total cost of project (attach detailed bid): Facade Improvement(s): Facade Improvement Cost: Grant Amount Requested: _____________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA Authorizing Grant Date 15 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT REIMBURSEMENT REQUEST Business Owner(s): Business Name: Business Address: Phone: Qualifying project work complete (this request): Cost of work (this request): Grant amount requested (this request): Total project cost to date (including this request): Total grant reimbursed (including this request): I hereby acknowledge that the facade work and/or materials referenced above have been completed and paid for at the above address, and documentation for that work is attached. _____________________________________________ _______________ Signature of Owner Date _____________________________________________ ______________ Signature of Executive Director EDA, Date Authorizing Reimbursement 16 Centerville Revolving Loan & Grant Program Rating Criteria The following criteria are eligible expenditures of Loan and Grant funds. In the case of multiple qualifying applications for the program, the applications will be ranked according to their conformance with the following rating scale. Centerville Revolving Loan & Grant Program Rating Criteria Improvement Type Priority List 1 Repairing, replacing, or installing cornices, entrances, windows, decorative details, awnings and exterior lighting 2 Sign removal, repairing or replacement 3 New signage 4 Streetscape or landscape improvements on private property 5 Handicapped accessibility improvements 6 Health and safety improvements 7 Parking lot improvements 8 Cleaning, painting and staining of exterior surface 9 Building identification 10 Decks or patios used for business purposes 17 PotentialRevolvingLoanandGrantProgramApplicants THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CENTERVILLE, MINNESOTA RESOLUTION #EDA 20-04 RESOLUTION REVISING THE ECONOMIC DEVELOPMENT WHEREAS, a primary purpose of the Economic Development Authority (EDA) is to promote existing businesses within the city of Centerville. WHEREAS, in support of this purpose, the EDA established a Revolving Loan and Grant Program (RLGP) with resolution #EDA 19-05. ception, approximately one year ago, there has been just one applicant. WHEREAS, city staff has solicited feedback on the program from local businesses and has further reviewed the program documents and is suggesting changes to those documents that seek to clarify the programs guidelines, expand the suite of potentially funded projects and enhance the to entice more applicants. NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of Commissioners, of the Centerville EDA hereby revises its Revolving Loan and Grant Program as detailed in the attached documents. THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS RESOLTUION WAS _____________________ IN FAVOR OF THE RESOLUTION. PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville th this 17 day of June, 2020. Jeff Hanzal, President Attest: Secretary, Teresa Bender CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: June 11, 2020 EDA VIII.3 TITLE OF ISSUE: Resolution #EDA 20-05 Establishing a Newspaper Advertising Campaign to Support Local Businesses BACKGROUND AND SUPPLEMENTAL INFORMATION: The publisher of The Quad Community Press and The Citizen has offered a two for one deal, of sorts, on advertisements in their papers. Previously, the committee decided not to pursue investments in newspaper advertisements, but with the improved value offered here, there may be reason to reconsider. Staff is suggesting one of two scenarios: - Two week run of half-page ads featuring generalized "Shop Local" theme. Larger ad could draw more attention, but may not help individual businesses. (EDA Cost - $871; one 1/2 pg ad, two consecutive wks) - Weekly smaller ads (2"x3") featuring recent "CenterStage" businesses. The art work would have already been produced, making it an easy endeavor. (EDA Cost $112/wk for two ads/wk) COST AND SOURCE(S) OF FUNDING: See attached rate sheet for more cost information. EDA General Fund REQUESTED ACTION: Motion to approve Resolution #EDA 20-05 Establishing a Newspaper Advertising Campaign to Support Local Businesses. SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: AyeNay ____ Newspaper Ad Pricing Sheet and Other (specify) ____________ _____ email re: 2 for 1 offer _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Mark Statz From:Citizen Ad <citizenad@presspubs.com> Sent:Friday, May 15, 2020 8:51 AM To:Mark Statz Subject:RE: Ad quote Caution:Thisemailoriginatedoutsideourorganization;pleaseusecaution. Hi Mark, st a quick note to let you know that I was chatting with Carter who relayed to me a conversation he had with Mayor Love about matching any advertising your EDA decides to do to promote your open businesses. Basically he offered to match an ad for an ad, so if you run 1 week we will repeat the ad the following week, or if you run in g week. Let me know if you have any questions, but hopefully this gives you a bit more to work with. Jeanne 1 %29/86%29/86%29/86%29/86%29/86 %43/:2 %:6/26%72/34 %58/18 %35/45%86/51 %63/77 %49/61%77/94 %91/:: QDJ QDJ %48/5:%48/5:%48/5:%48/5:%48/5: %:5/25 %88/11 %76/93 %233/58 %59/79 %272/:9 2y3 %244/76 2y3%261/8: %216/44 %2:1/41 %252/32 %84/13%:9/84 %67/35%67/35%67/35%67/35%67/35 2y42y4%226/61 %268/:: %294/81 %337/2: %353/:8 %396/56 %311/59 %:8/47 %85/:9%85/:9%85/:9%85/:9%85/:9 %242/74 %378/42 %412/69 %321/77%491/72%299/39 3y3%265/11 3y3%434/:7 %355/94 3y43y4 %223/59%223/59%223/59%223/59%223/59%223/59%223/59 %342/12 %2:8/56 %681/:2 %426/:9 %257/14 %478/51 %393/54 %563/49 %596/:4 %511/:7 %872/32 %2:5/82 %532/42 %758/:2 %25:/:8%25:/:8%25:/:8%25:/:8%25:/:8 %714/28 %645/72%487/68 %374/38 %419/12 %59:/98 3y53y5 %742/:8%:82/98 209 209%912/:3 %3:3/18%335/:6%335/:6%335/:6%335/:6%335/:6 %845/91%:15/86 %573/13%675/96 %4:5/:1 %2-252/13 4Dpm!y!4/88 %876/23 %9:6/27 %546/95%546/95%546/95%546/95%546/95 205 205 %676/9: %2-664/82 %3-323/38 %2-534/78%2-863/:5 %2-335/55 %2-993/:: %2-1:5/4: 4Dpm!y!8/79 %982/98%982/98%982/98%982/98%982/98%982/98%982/98 203 203 %2-242/87 %4-218/56 %2-8:1/44 %4-877/12 %2-641/37%3-299/93 %5-535/68%3-958/49 %3-565/9: %4-616/:5 4Dpm!y26/6 7Dpm!y!8/79 NVMUJQMF!JOTFSUJPO!!DPMPS GQ GQ EJTQMBZ!SBUFT%8-122/94 %8-642/:8 %2-854/4:%2-854/4:%2-854/4:%2-854/4:%2-854/4: %5-9:8/85 %7-325/97%5-488/71 %3-374/63%6-7:5/83 %4-691/74 %4-171/5: %9-95:/19 7Dpmy26/6 7-8:: 24-7287-574 4-5914-6114-6115-139 28-1:8 Djsdvmbujpo XfeXfeXfe Uvft Qvc Ebz!pg! NpouimzNpouimz Uv0FPX Ui0FPX Qvcmjdbujpo Xijuf!Cfbs0Wbeobjt!IfjhiutXijuf!Cfbs!QsfttWbeobjt!Ifjhiut!QsfttRvbe!Dpnnvojuz!QsfttTu/!Dspjy!Wbmmfz!MpxepxoGpsftu!Mblf!MpxepxoTipsfwjfx!QsfttUif!Djuj{fo Xijuf!Cfbs0Wbeobjt!Ifjhiut!Qmvt!2!Beejujpobm!Q vcXijuf!Cfbs0Wbeobjt!Ifjhiut!Qmvt!3!Beejujpobm!QvctXijuf!Cfbs0Wbeobjt!Ifjhiut!Qmvt!4!Beejujpobm!QvctXijuf!Cfbs0Wbeobjt!Ifjhiut!Qmvt!5!Beejujpobm!QvctXijuf!Cfbs0Wbeobjt!Ifjhiut!Qmvt!6!Beejujpobm!QvctB oz!puifs!3!QvcmjdbujpotBoz!puifs!4!QvcmjdbujpotBoz!puifs!5!QvcmjdbujpotBoz!puifs!6!Qvcmjdbujpot +Beejujpobm!%36!Ejhjubm!Cpptu!bqqmjft!up!bmm!bet!7!boe!mbshfs THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CENTERVILLE, MINNESOTA RESOLUTION #EDA 20-05 RESOLUTION ESTABLISHING A NEWSPAPER ADVERTISING CAMPAIGN TO SUPPORT LOCAL BUSINESSES WHEREAS, a primary purpose of the Economic Development Authority (EDA) is to promote existing businesses within the city of Centerville. WHEREAS, in support of this purpose, the EDA is working with the local newspapers to offer affordable advertising for direct purchase and is pursuing agreements with the paper for EDA- culture or advertisements run in conjunction CenterStage program. NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of Commissioners, of the Centerville EDA hereby Establishes a Newspaper Advertising Campaign to subsequently authorize specific advertisement purchases via simple motions or through delegation to EDA staff. THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS RESOLTUION WAS _____________________ IN FAVOR OF THE RESOLUTION. PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville th this 17 day of June, 2020. Jeff Hanzal, President Attest: Secretary, Teresa Bender