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HomeMy WebLinkAbout2023-08-16 EDA Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY ЋΑǣ MEETING AGENDA Wednesday, August 16, 2023 6:30 p.m. MEETING WILL BE IN PERSON LIVE-STREAMED AT: https://northmetrotv.com/centerville-stream/ MEETING I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda IV. APPROVAL OF MINUTES 1. July 19, 2023 EDA Meeting Minutes V. BILLS AND COMMUNICATIONS 1. Bills Check List None 2. Communications a. Hotel Study VI. PRESENTATION 1. None VII. REPORTS 1. Partner Agency Reports a. Anoka County Regional Economic Development (ACRED) b. Quad Area Chamber of Commerce c. Hugo Area Business Association 2. Year to Date Financials 3.Ongoing Programs: a. Blue Logo Sign b.Center Stage c. Business Revolving Loan and Grant Program 4.AdministratorÓs Report VIII.OLD BUSINESS 1. Revolving Loan and Grant Program Guidelines 2.Priorities from Downtown Redevelopment Market Study IX. NEW BUSINESS 1. Business Appreciation 2. Adding Executive Director as a signer on the EDA MidWest One Bank Accounts X. ADJOURNMENT INFORMATIONAL MATERIALS None MEETING REMINDERS All Meetings at 6:30 PM unless otherwise noted City Council Work Session Î Wednesday, August 23, 2023 Î 5:00P.M. City Council Meeting Î Wednesday, August 23, 2023 Parks and Recreation Committee Î September 6, 2023 Planning and Zoning Commission Î Tuesday, September 5, 2023 Economic Development Authority Î Wednesday, September 20, 2023 Anoka County Regional Economic Development Authority Meetings Anoka County Business/Banking Summit Î TBD Quad Area Chamber of Commerce Meetings Board of Directors Meeting Î August 10, 2023 (12:00 PM via Zoom) CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION & MEETING MINUTES July 19, 2023 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled Economic Development Authority meeting on July 19, 2023. MEETING NOT APPROVED I. CALL TO ORDER The meeting was called to order at approximately 6:30 p.m. by President Remillard. II. ROLL CALL President Remillard called the roll. PRESENT: President Mark Remillard Vice-President Chris Swenson Commissioner Darrin Mosher Commissioner Steve King Commissioner Tony Smith STAFF: Assistant City Administrator/EDA Executive Director, Athanasia Lewis ABSENT: None III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda There was one revision to the agenda, which is adding money market accounts under Old Business, item 1. Motion by Commissioner Swenson, seconded by Commissioner Mosher to approve the revised agenda. All in favor. Motion carried. IV. APPROVAL OF MINUTES The minutes were approved as presented. Motion by Commissioner Mosher and seconded by Commissioner Swenson to approve the June 21, 2023, meeting minutes. All in favor. Motion carried. City of Centerville EDA Meeting Minutes July 19, 2023 V. BILLS AND COMMUNICATIONS 1. Bills a. Check List Executive Director Lewis reviewed the list of checks as presented in the packet. Motion by Commissioner Mosher and seconded by Commissioner Smith to approve the check list as presented. All in favor. Motion carried. 2. Communications a. Block 7 Executive Director Lewis reviewed the item as presented in the packet. b. LaLonde Property Executive Director Lewis reviewed the item as presented in the packet. c. Prioritization in the Downtown Redevelopment Market Study Executive Director Lewis reviewed the item as presented in the packet. VI. PRESENTATION None VII. REPORTS 1. Partner Agency Reports a. Anoka County Regional Economic Development (ACRED) Executive Director Lewis reviewed the report as presented in the packet. 2. Year to Date Financials Executive Director Lewis introduced the financial report as presented in the packet. Motion by Commissioner Swenson and seconded by Commissioner Smith to approve the financial statement as presented. All in favor. Motion carried. 3. Ongoing Programs: Executive Director Lewis reviewed the Ongoing Programs report as presented in the packet. 4. AdministratorÓs Report Executive Director Lewis reviewed the AdministratorÓs Report as presented in the packet. VIII. OLD BUSINESS 1.Money Market Account Ћ City of Centerville EDA Meeting Minutes July 19, 2023 Executive Director Lewis introduced this item, noting that when she and Finance Director DeJong went to MidWest One to open the money market account the EDA approved in June, they were told that the offer could no longer be accepted because the promotion had ended. MidWest One spoke with staff about a high yield savings account, which is comparable in terms to the money market account, except for check writing capabilities. Discussion ensued about the terms and conditions and the amount to keep in the existing checking account. The EDA would like to keep $2,500 in the existing checking account and transfer the remaining balance, which is about $57,000 into the new savings account. Motion by Commissioner Mosher and seconded by President Remillard to approve the resolution authorizing staff to open a high yield savings account and transfer funds, except for $2,500, from the existing checking account to the new savings account at MidWest One. All in favor. Motion carried. IX. NEW BUSINESS 1. Revolving Loan and Grant Program Executive Director Lewis introduced this item, noting that the city received an inquiry from a non- governmental organization about participation in the EDAÓs Revolving Loan and Grant Program. Discussion ensued about program guidelines and whether non-governmental, charitable, non- profitÓs, other organizations should be able to participate in these programs. Discussion ensued about program guidelines and participating entities. The EDA opted to table this item and request legal advice about potential impact(s) for expanding the program to include non-governmental organizations. There was concern about providing grant assistance to entities who are tax exempt. Motion by Commissioner King, seconded by Commissioner Mosher to table the discussion on the revolving loan and grant program until we can follow-up with our attorney on this matter. All in favor. Motion carried. 2. Anoka County Grants Executive Director Lewis introduced this item as presented in the packet, noting that there is a second round of predevelopment grants being offered through Anoka County. Executive Director Lewis asked if the EDA would like to propose other projects. Discussion ensued about the projects outlined in packet materials and additional projects. The EDA would like to endorse the list provided in the packet and add a pre-demolition survey for block 5. The EDA noted that would not like to exceed the amount allotted in the grant. Motion by Commissioner Mosher, seconded by Commissioner Swenson to endorse the list of predevelopment projects recommended by staff and add a pre-demolition survey for block 5. All in favor. Motion carried. Ќ City of Centerville EDA Meeting Minutes July 19, 2023 X. ADJOURNMENT Motion by Commissioner Swenson, seconded by Commissioner Smith to adjourn the July 19, 2023, Economic Development Authority meeting at 7:48 p.m. All in favor. Motion carried. Ѝ CITY OF CENTERVILLE REQUEST FOR ACTION Department: RequestedMeetingDate: Agenda Item August 16, 2023 Administration/EDA TITLE OF ISSUE: Hotel Study BACKGROUND AND SUPPLEMENTAL INFORMATION: Staff met with the consultant who is working on the hotel study for the site north of NorBella and provided background information about the community. We anticipate the study taking about four to six weeks. COST AND SOURCE(S) OF FUNDING REQUESTED ACTION: Information only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: August 16, 2023 Administration/EDA VII.1 TITLE OF ISSUE: Partner Agency Report BACKGROUND AND SUPPLEMENTAL INFORMATION: ACRED - Quad Area Chamber - he lunch-n-learn topic on August 16th is tourismhe event will take place at 11:30am - 1pm at the Centennial Community Room. HBA - The annual Summer Boat Cruise on Bald Eagle Lake has been re-scheduled on Tuesday, August 15th from 4:45pm-7:45pm. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED ACTION: Update only For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Economic Development Authority Monthly Financial Report Month Ended July 31, 2023 % of year 58.33% MTDYTDBudgetVariance% Budget 7/31/202320232023+(-)Used Revenues: 201-46500-39201 Transfers In -$ 36,600 $ 36,600$ -100.00% 201-46500-39500 Use of Fund Balance -$ 20,500 $ 20,500$ -100.00% 201-46500-36270 Miscellaneous-$ - $ -$ - 201-46500-36270 Refunds/Reimburseme-$ 150 $ -$ 150 Total Revenues-$ 57,250 $ 57,100$ -100.26% Expenditures: 201-46500-100 Wages and Salaries450$ 900 $ 2,400$ 1,50037.50% 201-46500-122 FICA34$ 69 $ 200$ 13134.44% 201-46500-210 Operating Supplies-$ - $ 3,000$ 3,0000.00% 201-46500-300 Professional Srvs **-$ 20,500 $ 23,500$ 3,00087.23% 201-46500-303 Engineering Fees-$ - $ 6,000$ 6,0000.00% 201-46500-304 Legal Fees409 $ -$ (409) 201-46500-331 Travel Expense-$ - $ 100100 $ 0.00% 201-46500-340 Advertising & Printing-$ 600 $ 15,400$ 14,8003.90% 201-46500-343 Marketing-$ - $ 2,500$ 2,5000.00% 201-46500-378 EDA Reserve Funds-$ - $ -$ - 201-46500-377 Appreciation/Events-$ - $ 1,300$ 1,3000.00% 201-46500-430 Miscellaneous-$ 405 $ 100$ (305)404.60% 201-46500-433 Dues and Subscriptions-$ 693 $ 1,100$ 40763.00% 201-46500-441 Conf. & Schooling-$ 240 $ 1,500$ 1,26016.00% 201-46500-810 Refunds & Reimb.-$ 742 $ -$ (742) Total Expenditures484$ 24,557 $ 57,100$ 32,54343.01% NET REVENUE/EXPENDITURES(484)$ 32,693 $ -$ (32,543) Fund Balance, January 1 less Usage 24,439 Fund Balance, Current57,132 08/07/23 3:35 PM CITY OF CENTERVILLE Page 1 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA JULY 2023 Account Summary Beginning Balance on7/1/2023$58,024.85 Cleared$57,540.41 + Receipts/Deposits $0.00 Statement$57,540.41 - Payments (Checks and Withdrawals) $484.44 Difference$0.00 $57,540.41 Ending Balance as of 7/28/2023 Cash Balance Active101-10350 General Fund$0.00Beginng Balance$58,024.85 Active201-10350 ECONOMIC DEVELOPMENT FUND$57,131.91+ Total Deposits$0.00 - Checks Written $892.94 Cash Balance $57,131.91 Check Book Balance $57,131.91 Difference$0.00 08/07/23 3:35 PM CITY OF CENTERVILLE Page 2 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA ClearedAmountPartially Cleared Check NbrVendor NameCheck DateAmount This MonthNot ClearedLast Month 506126EQuarterly ACH7/5/2023-$415.56-$415.56 000020EIRS/EFTPS7/6/2023-$68.88-$68.88 001059 BBKG, LLC6/21/2023$408.50$408.50-- Receipts/Deposits$0.00$0.00$0.00$0.00 Payments/Withdrawal$408.50$484.44$408.50$0.00 $0.00 Total Deposits $892.94 Total Checks Written *Next month items not included in Total Deposits & Checks Written (Outstanding + Cleared CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: August 16, 2023 Administration/EDA VII.3 TITLE OF ISSUE: Ongoing Programs Report BACKGROUND AND SUPPLEMENTAL INFORMATION: Center Stage - Information was provided to the following businesses: Send me a Trainer, Heritage Cleaning Services, and Connor James Salon. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED ACTION: Update only For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular AdministratorÓs Report August 09, 2023 ECOMONIC DEVELOPMENT Ribbon Cutting Humble Roots Boutique had their ribbon cutting and grand th opening on Wednesday, July 26 and it was a huge success. Mayor D. Love and Senator Gustafson were both present to welcome new business owners Tiffany Downing and Evonne Bisson to Centerville. There was also a long line of people waiting for the ribbon to be cut, so they could look around and shop in CentervilleÓs newest boutique. Check out pictures of the ribbon cutting on the cityÓs Facebook page at: https://www.facebook.com/centervillemn/ VOLUNTEER OPPORTUNITIES Open Board Positions Please call city hall at 651-429-3232 with any questions you may have regarding the following openings. If you are interested in applying, scan the QR Code to the right or visit the CityÓs website for an application. Parks & Recreation Committee Î 1 Open Seat st o 1 Wednesday of the month at 6:30 p.m. Planning & Zoning Commission Î 2 Open Seats o 1st Tuesday of the month at 6:30 p.m. ADMINISTRATION Meeting and City Hall Schedule August 9, 2023, 6:30 p.m. Î City Council August 16, 2023,6:30 p.m. Î Economic Development Authority September 5, 2023, 6:30 p.m. Î Planning & Zoning Commission September 6, 2023, 6:30 p.m. Î Parks & Recreation Committee Anoka County Highway Depart. Detour Notice th County Highway 54 (20 Ave.) will be closed, south of Birch Street from August 21 Î 25 for culvert replacement. PARKS & RECREATION Main Street Market The last of the Markets will be on Thursday, August 10, 2023 (Pet Night). We encourage you to bring your pet(s) this evening. The Market begins at 5:30 p.m. and ends at 7:30 p.m. There will be a mini pet parade with the Lino Lakes Ambassadors judging the ÐCutest PetÑ contest. Three prizes will be given away to the winners. The Parks & Recreation Committee would like to thank donations received from Chuck & DonÓs Pet Food of Forest Lake and ChristaÓs Paw Spa for the prizes. Pet owners must be present to win at the Bald Eagle Waterski Show taking place at Trailside Park which is a short walk from the Market. Winners will be chosen at 7:30 p.m. on site. Below are photos of Kids Night, August 3, 2023. Free facepainting by Linda, a Bounce House, Touch-a- Truck with Centennial Fire District, Centennial Police Department, MFairview Ambulance, Rehbein School Bus and a City Snowplow were on hand to provide kids with a special experience. The Parks & Recreation Committee also provided rock painting, coloring of Minnesota State Symbols and a Word Find for those that were on site. It was a fun evening, with approximately 501 individuals participating. A special thank you to all Public Safety entities who ensure that visitors and residents are well taken care. Thank you to Rehbein Bus Company who ensure that our children arrive to and from school safely. Music in the Park Music in the Park Music in the Park has been well attended this season. The second to the last of the series will happen on Tuesday evening at Hidden Spring Park, 1601 LaMotte Drive, beginning at 6:30 p.m. The performers will be Pop Standards Social Club. CarboneÓs Pizza of Centerville will be on site for selling of pizza. You can also visit the Music in the Park Facebook page by clicking here. Picnic tables are available on site, first-come, first- served. Remember to bring your blanket and/or lawn chair. Oath of Office Î New Parks & Recreation Committee Member At the CommitteeÓs August 2, 2023 meeting, Ms. Ashley Fuchs was sworn into office. Ms. Fuchs brings to the Committee a background of urban and community forestry with a degree from the University of Minnesota. She also bring 6.5 years as the StateÓs Urban & Community Forestry Volunteer Program Coordinator. Ms. Fuchs has hit the ground running and participated in numerous events throughout the last month. Ms. Fuchs has resided in Centerville for one year and has a passion for volunteerism. She will be a great asset to the Committee. Welcome Ashley! Flag Raising/Opening Ceremony/Fete des Lacs @ Music in the Park The City was fortune to again have the Scouts on hand to commence the annual flag raising ceremony on Tuesday, July 11, 2023 at Hidden Spring Park followed by the Mayor (D. Love) and a representative of the Centerville Lions (Mrs. Nancy Johnson) welcoming participation in the week long City Celebration. CENTERVILLE CARES Auto insurance Discounts for Seniors If you are 55 or older and would like to save money on your auto insurance, the CountyÓs Driver Improvement Course, may be just what you are looking for. By taking this driving course, you will save 10% on your auto insurance for three years. There are no written or driving tests needed. This course is merely a 4-hour refresher class that the county offers in partnership with St. Cloud Driver Improvement Program. Please call the senior center at 763-576-4661 for the current class schedule. To register, call 888-234-1294. ECONOMIC DEVELOPMENT Quad Area Chamber Calendar August 10, 2023 Î QACC Monthly Board Meeting Î 12PM-1PM Î Online August 16, 2023 Î Lunch & Learn Î Tourism Î 11:30AM-1:00PM Î Centennial Community Room August 17, 2023 Î Centennial Food Truck & Fun Festival (featuring car show & MN Sings competition) Î 4:00PM-8:00PM Î Centennial Middle School August 23, 2023 Î Nosh & Networking Î 4:00PM-7PM ÎThrivent Finance Building Upcoming Ribbon Cuttings August 31, 2023 Î Connor James Salon Î 7087 Centerville Road Î 4:15PM & Open House from 4:15PM-8:15PM CENTENNIAL LAKES POLICE DEPARTMENT Annual Report The Centennial Lakes Police DepartmentÓs 2022 Annual Report is now available. Please take a moment to review it at your leisure. Chief Mork will be on hand at the August 9 City Council meeting to present the report and answer questions on the state of the department. Click here to read the report. Police Governing Board The Centennial Lakes Police Governing Board will meet on August 14. The regular meeting will include the swearing-in of 3 new officers, the promotion of Officer Schroeder to the rank of Corporal and the presentation of the American LegionÓs Officer of the Year award to Corporal John Krueger. After all the pomp and circumstance, the board will be tasked with considering the 2024 budget for the department and a review of the tri-city funding formula. The budget includes the addition of one new officer, with the potential to add a second new officer if a federal COPS grant is received. CENTENNIAL FIRE DISTRICT WeÓre Hiring WeÓre hiring! Click here for more info, or to apply: https://www.centennialfire.org/services-2. Station 3 Remodel Station 3 (thatÓs CentervilleÓs Fire Station) is undergoing a bit of a remodel to better facilitate training. Sessions that used to be held out in the equipment bay will now be accommodated in a new training room. The space remains flexible and can be used as a meeting space and lunch room. Amazon Training As with all new commercial buildings, the fire department takes time to tour and get to know the layout of the structure. If youÓre a firefighter, you certainly donÓt want to have a fire be the first time you enter a large commercial or industrial building. With Amazon, the need for these walk-throughs is amplified by the size and complexity of the building and its operations. At their last training session, the fire department had an opportunity do some reconnaissance and emergency planning from inside the Amazon Facility. Also important is for the department to explore the various locations around the building where hydrants are available and where the best position for their trucks would be under different circumstances. As you can imagine, this all takes a lot of work and expertise. We are fortunate to have a professional department with the skills and personnel necessary to serve both our new and existing businesses so well. COMMUNITY DEVELOPMENT Block 7 Property (Downtown) Kennedy Property Development At the July 26 city council meeting, council discussed development on Block 7. Council talked about their preferences for apartments or townhomes on this site. Based on feedback from council, staff met with Kennedy Property Development (KPD) to discuss the possibility of a townhome proposal. KPD will consider this option, and we may see something from them in the near future. 7087 Centerville Road (Block 8) The City Council approved an Interim Use Permit for the commercial building at 7087 Centerville Road to operate a salon. As part of the requirements for the building the parking lot behind the building was to be paved. This work is done, with a few details left to go like fencing and minor landscaping. Additional work inside the building has already begun and will finish within a few months. The business is scheduled to open on July 25, with a grand opening set for August 31. 1737 Main Street (Block 3) Both the geotechnical and environmental studies are now complete and have been delivered to the developer for their review. At their last meeting, the City Council extended the due diligence period for the developer since things are taking a little longer than originally anticipated. With the recently completed reports, the design of the site should be able to continue and a revised plan presented in short order. 1687 Westview Street (LaLonde Property) This 3-acre site is generating a lot of interest and two developers have met with the property owners to discuss potential projects. Staff has also met with the property owners and both developers to answer questions and discuss the cityÓs Downtown Redevelopment Masterplan and Guidelines. Staff anticipates that a proposal will be brought forward in the coming weeks. Both developers have informally asked the city to consider using economic development tools such as Tax Increment Financing or Tax Abatement. The city council has engaged in work session discussion on these items, but no formal commitments have been made. stnd Old Mill Estates 1 and 2 Additions Most items are now complete. We are awaiting close-out of the wetland and watershed permits, prior to releasing securities. Centerville Storage The facility is now open for business. The developer has completed drainage corrections along the north side of the facility and will continue to work on watershed permit close-out. Bay View Villas (Waterworks Site) The developerÓs landscaping crew has begun work near the dock access area. Watershed permit closure is also required, prior to release of the development securities. Rehbein Commercial thst The sidewalk on the north side of Main Street, between 20 Avenue and 21 Avenue has been installed. The developer is working on final turf establishment and is working with staff to adjust their security to cover the warranty period. The developer has also reestablished positive balances in their escrow accounts, which will be held open until all securities have been released. Kwik Trip Work is complete. We are working with the developer to close out the project. Rehbein Industrial Record Plans for the project have been submitted and reviewed. Once permit closure is achieved, the project can be closed out. Max Storage (Fairview Street) Grading has been completed. Sewer and water to Building #1 have been completed. Foundations have been poured. The footings are being completed and the walls are being built. Amazon Fulfillment Center On July 11, a Certificate of Occupancy was issued for the building, by our Building Inspection department! A response to the initial floodway modeling submittal has now been received from FEMA. The consultant is working through a resubmittal. With the contractorÓs work complete, Amazon staff is gearing up for a late August opening. Development Inquiries Coffee franchise continuing search for viable sites. th 20 Avenue (CSAH 54) Corridor Study The first of several community engagement meetings has been scheduled with the business owners th surrounding 20 Avenue and Main Street. These property owners will be asked to give input on various options. From there, the design team will refine and narrow-down the potential geometric alignments and intersection treatments with the goal of presenting information to the broader public at open houses, this fall. City Hall Parking Lot Lighting Staff will be meeting with the contractor next week to go over installation details and scheduling. COMMUNITY ENGAGEMENT (July 2023) Web Site (2,200 Unique Visitors, 3,000 Total Visits) Fete des Lacs th City Hall Closed for 4 of July Anoka Co. Government Officials Meeting Volunteer Opportunities Main Street Market Î Kids Night Fire District Hiring Promo Reader Board (11,000+ cars/day) Committee/Commission Vacancy Announcement Meeting Schedules Main Street Market Cancellation Social Media (535 Twitter; 745 FB Followers) (XX/XX Impressions) City Accounts (545 Twitter; 720 FB Followers) o 7/26 Humble Roots Grand Opening Video (XXX/291) o 7/26 Humble Roots Grand Opening Video (XXX/494) o 7/26 Humble Roots Grand Opening Pic (XXX/NA) o 7/24 Severe Thunderstorm Warning (NA/316) o 7/13 Public Safety Night (173/XXX) o 7/13 MayorÓs Minutes (206/291) o 7/12 Fete des Lacs Micro-Medallion (147/1278) o 7/6 Main Street Market Promo (XXX/NA) Music in the Park (910 FB Followers) Main Street Market and Waterski Show (822 FB Followers) Centerville Fete des Lacs (1,5XX FB Followers) Community Email List (247 email addresses) 7/12 & 7/26 Upcoming CC Agenda, Admin Report & Newsletter Business Email List (60 email addresses) 6/8 Swag Bags 6/27 Promotional items NMTV Centerville Streaming Page (5 meetings) 57 Live Stream views of our City Meetings 45 Video On-Demand views of our City Meetings CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: 1, 2023 Administration/EDA I.1 TITLE OF ISSUE: Revolving Loan and Grant Program BACKGROUND AND SUPPLEMENTAL INFORMATION: COST AND SOURCE(S) OF FUNDING: N REQUESTED ACTION: Motion to For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Revolving Loan and Grant Program Guidelines Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET May 18, 2022 Formatted: Font: 14 pt, Bold August 16, 2023 1 CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND The Centerville Economic Development Authority (the ÐCVEDAÑ) endeavors to support a program of city revitalization. This effort is aimed at strengthening the cityÓs vitality in 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 businessproperty esowners 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 cityÓs Housing and Redevelopment Authority funds, 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 businessproperty owner(s) es for program eligible real estate improvements. Target downtown property owner(s) 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 businessproperty owner(s) es within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require property owner(s) 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 applicantÓs eligibility based on: - 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. 2 Distribution of program information to area businessproperty owner(s).es. 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 equal to funds to be provided from the CityÓs RLGP. Underwriting to determine applicantÓs 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 businessproperty owner(s) es 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. The EDA, as the programÓs administrator, will maintain and update program guidelines and monitor their compliance. Administration of the EDAÓs responsibility will be under the direction of the EDAÓs Executive 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 4 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 upon the projectÓs consistency with program 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 highest on the programÓs application scoring worksheet. VI. CONTRACTING AND CONSTRUCTION The applicant shall prepare or have prepared a detailed Scope of Work, which will also be the projectÓs bidding document. The Scope of 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. 5 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 businessa property owner(s)es, 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 businessproperty owner(s), 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 Property owner(s) receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Types of businesses Property owner(s) 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. 6 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, businessproperty owner(s) es 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 applicantÓs structure requires immediate attention (hazardous code deficiencies, etc.) and the following steps are taken: 7 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. However, this is done at the applicantÓs and/or financial institutionÓs own risk until the total 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 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 owner(s) fixtures Roof repairs and replacement 8 XV. INELIGIBLE COSTS (LOAN PROGRAM) The following costs are ineligible: Refinancing of existing debts Non-fixed improvements Working capital Inventory Sweat equity (payment for the applicantÓs own 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 1:1 match of private investment. For example, to qualify for a grant of $2,000, a total of $4,000 must be spent. For a $10,000 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. For signage, 50% of the cost toward the sign will be paid on day one and the other 50% will be paid after one year, on day 366 if the business business/organization is still operational. 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 business purposes 9 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 owner(s) fixtures Roof repairs and replacement Refinancing of existing debts Non-fixed improvements Working capital Inventory Sweat equity (payment for the applicantÓs own 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 staff. Grant monies are not available for Ðsweat equityÑ. Grants will be distributed upon final inspection by the City and submittal of a paid invoice. 10 CENTERVILLE REVOLVING LOAN PROGRAM APPLICATION FORM I. APPLICANT INFORMATION Property Business Owner(s)Ós Name(s): Home Address: Phone: ________________ E-Mail Address: Name of Property Owner(s) Business: Formatted: No underline Property Owner(s) Business Address: Phone: ________________ Property Owner(s) Business Structure: _____ Sole Proprietorship _____ Partnership (all partners must sign this application) _____ Corporation (list officers on separate sheet) Type of Property Business (describe): II. PROPERTY INFORMATION Property Owner: Address: 11 Phone: ________________ E-Mail Address: Does the applicant business occupy the total building? Yes _____ No _____ 12 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: ___________________________________________ ____________________ BusinessProperty Owner(s)Ós Signature Date ___________________________________________ ____________________ BusinessProperty Owner(s)Ós Signature Date 13 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 owner(s) fixtures may be funded with the private sector (matching) loan portion only. 14 CITY OF CENTERVILLE EDA REVOLVING LOAN PROGRAM OWNER AGREEMENT Owner Certification DATE: OWNER: ADDRESS: PROPERTY ADDRESS TO BE REHABILITATED: BUSINESSPROPERTY OWNER(S) 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 ÐProgramÑ): 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. 15 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 the applicantÓs eligibility 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. I understand that ÐapprovalÑ means specific, 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 16 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT APPLICATION BusinessProperty Owner(s): BusinessProperty Owner(s) Name: BusinessProperty Owner(s) 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 17 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT REIMBURSEMENT REQUEST BusinessProperty Owner(s): BusinessProperty Owner (s) Name: BusinessProperty Owner (s) 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 18 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 business purposes 19 CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET August 16, 2023 1 CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) I.BACKGROUND The Centerville Economic Development Authority (the ÐCVEDAÑ) endeavors to support a program of city revitalization. This effort is aimed at strengthening the cityÓs vitality in 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 property owners 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 redevelopment needs throughout the city. The Centerville CVEDA established an initial $50,000 loan/grant pool, through an earmark of the cityÓs Housing and Redevelopment Authority funds, 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 property owner(s) for program eligible real estate improvements. Target downtown property owner(s) along Centerville Road and Main Street. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For property owner(s) within the M-1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require property owner(s) 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 applicantÓs eligibility based on: - 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 property owner(s). Referral of applicants to local banks. 2 Participation agreements with local banks. Financial institutions are responsible for: Receipt and processing of loan applications. Provision of matching loan funds at least equal to funds to be provided from the CityÓs RLGP. Underwriting to determine applicantÓs 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 property owner(s) 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. The EDA, as the programÓs administrator, will maintain and update program guidelines and monitor their compliance. Administration of the EDAÓs responsibility will be under the direction of the EDAÓs Executive 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 upon the projectÓs consistency with program 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 highest on the programÓs application scoring worksheet. VI. CONTRACTING AND CONSTRUCTION The applicant shall prepare or have prepared a detailed Scope of Work, which will also be the projectÓs bidding document. The Scope of 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 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 a property owner(s), 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 property owner(s)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. Property owner(s) receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Property owner(s) 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, property owner(s) 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 applicantÓs structure requires immediate attention (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. However, this is done at the applicantÓs and/or financial institutionÓs own risk until the total 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 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 owner(s) 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 Sweat equity (payment for the applicantÓs own 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 1:1 match of private investment. For example, to qualify for a grant of $2,000, a total of $4,000 must be spent. For a $10,000 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. For signage, 50% of the cost toward the sign will be paid on day one and the other 50% will be paid after one year, on day 366 if the business/organization is still operational. 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 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 owner(s) fixtures Roof repairs and replacement Refinancing of existing debts Non-fixed improvements Working capital Inventory Sweat equity (payment for the applicantÓs own 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 staff. Grant monies are not available for Ðsweat equityÑ. 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 Property Owner(s)Name(s): Home Address: Phone: ________________ E-Mail Address: Name of Property Owner(s) Property Owner(s) Address: Phone: ________________ Property Owner(s) : _____ Sole Proprietorship _____ Partnership (all partners must sign this application) _____ Corporation (list officers on separate sheet) Type of Property (describe): II. PROPERTY INFORMATION Property Owner: Address: Phone: ________________ E-Mail Address: Does the applicant occupy the total building? Yes _____ No _____ 10 If NO, what percentage does the applicant 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: ___________________________________________ ____________________ Property Owner(s) Signature Date ___________________________________________ ____________________ Property Owner(s) Signature Date 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 owner(s) 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: PROPERTY OWNER(S) 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 ÐProgramÑ): 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 the applicantÓs eligibility 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. I understand that ÐapprovalÑ means specific, 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 Property Owner(s): Property Owner(s) Name: Property Owner(s) 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 Property Owner(s): Property Owner (s)Name: Property Owner (s)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 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: August 16, 2023 Administration/EDA VIII.2 TITLE OF ISSUE: Priorities from Downtown Redevelopment Market Study BACKGROUND AND SUPPLEMENTAL INFORMATION: Staff is working on priorities from the Downtown Redevelopment Market study: 1.Staff is continuing to research incubator spaces 2.Leveraging grants and resources: Block 7 was purchased with CDBG funding and a livable communities grant from the Met Council was awarded and returned in 2009 for apartments. Pre-development grants were awarded for environmental phase I work. 3.Promoting development along centerville road and Main Street - staff continues meeting with interested parties on the LaLonde site, Block 7, 1737 Main Street. An inventory of city-owned and private parcels in provided in the packet. COST AND SOURCE(S) OF FUNDING: Already budgeted REQUESTED ACTION: Discussion only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) _____ ____________ _____ _____ _______________________________________________________________ _____ _______________________________________________________________ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular City-ownedPrivate opportunity Legend Progress Rd. Main St. s Ô y l l e Rail K Home Southern Centerville Rd. Home Home Catering Antiques C Apartments Home Sorel St. Heritage St. HomeHome Park Goiffon Rd. Cornerstone Park Trail Side Downtown CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: August 16, 2023 Administration/EDA IX.1 TITLE OF ISSUE: Business Appreciation BACKGROUND AND SUPPLEMENTAL INFORMATION: Staff is requesting input on event logistics: venue, speaker(s), food, recognition, COST AND SOURCE(S) OF FUNDING: REQUESTED ACTION: Discussion Only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: August 16, 2023 Administration/EDA XI.2 TITLE OF ISSUE: Authorize Executive Director to Perform Banking and Investment Duties BACKGROUND AND SUPPLEMENTAL INFORMATION: It is reasonable and prudent to have the Executive Director to have the same powers as the Assistant Treasurer in the performance of all necessary administrative duties. The Economic Development Authority is being requested to provide explicit authorization for banking and investment duties to be transacted by another staff member in the Assistant Treasurer's absence. This will authorize President Mark Remillard, Treasurer Anthony Smith, Executive Director Athanasia Lewis, and Asst. Treasurer Bruce DeJong to sign checks and initiate transactions at MidWestOne Bank. The expenditure of funds will still require two signatures and it is staff's intention that we always utilize one staff member and one board member for that purpose. COST AND SOURCE(S) OF FUNDING: No cost REQUESTED ACTION: Staff recommends that the EDA approve the resolution as presented. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CENTERVILLE Resolution # 23-005 A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO PERFORM BANKING AND INVESTMENT DUTIES BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CENTERVILLE, MINNESOTA WHEREAS, Athanasia Lewis is the Executive Director for the Centerville EDA; and WHEREAS, there is currently only one staff member authorized to conduct financial transactions; and WHEREAS, it is prudent to have a backup fully authorized to perform the duties in relation to our banking and investments; NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Centerville that: The authorizes Athanasia Lewis, Executive Director, to perform all banking and investment activities for the EDA. Passed and Adopted by the Centerville Economic Development Authority this 16th day of August, 2023. ____________________________________________________ Athanasia Lewis, Executive Director Mark Remillard, President