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Home My WebLink About2023-09-20 EDA Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY ЋΑǣ MEETING AGENDA Wednesday, September 20, 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. August 16, 2023 EDA Meeting Minutes V. BILLS AND COMMUNICATIONS 1. Bills Check List 2. Communications VI. PRESENTATION 1. Resolution Honoring the Service of Steve King 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. Business Appreciation IX. NEW BUSINESS 1. Trunk or Treat X. ADJOURNMENT INFORMATIONAL MATERIALS None MEETING REMINDERS All Meetings at 6:30 PM unless otherwise noted City Council Work Session Î Wednesday, September 27, 2023 Î 5:00P.M. City Council Meeting Î Wednesday, September 27, 2023 Parks and Recreation Committee Î October 4, 2023 Planning and Zoning Commission Î Tuesday, October 10, 2023 (date change) Economic Development Authority Î Wednesday, October 18, 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 September 21, 2023 (9am via Zoom) CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION & MEETING MINUTES August 16, 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 August 16, 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 agenda was approved as presented. Motion by Commissioner Mosher, seconded by Commissioner Swenson to approve the agenda. All in favor. Motion carried. IV. APPROVAL OF MINUTES The minutes were approved as presented. Motion by Commissioner Swenson and seconded by Commissioner Smith to approve the July 19, 2023, meeting minutes. All in favor. Motion carried. City of Centerville EDA Meeting Minutes August 16, 2023 V. BILLS AND COMMUNICATIONS 1. Bills a. Check List Executive Director Lewis reported that there are no bills. 2. Communications a. Hotel 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 Mosher 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. Revolving Loan and Grant Program Guidelines Executive Director Lewis introduced this item and discussion ensued about program guidelines, including qualifications and eligible criteria. The Board decided to expand the program to include local businesses and non-residential real estate owners. The EDA will continue discussing their program guidelines next month. Motion by Commissioner Smith and seconded by Commissioner Smith to approve expanding the Revolving Loan and Grant Program Guidelines to include local businesses and non-residential owners. All in favor. Motion carried. 2. Priorities from Downtown Redevelopment Market Study 2 City of Centerville EDA Meeting Minutes August 16, 2023 Executive Director Lewis presented the update as presented in the packet. She also noted that she would be attending the ribbon cutting for the new incubator space in Brooklyn Park next week. IX. NEW BUSINESS 1. Business Appreciation Event Executive Director Lewis introduced this item, and discussion ensued about event logistics. Executive Director Lewis will check with KellyÓs to see if the event can be held there. The Board also discussed handing out a few prizes. The EDA wants the event to be informal, with limited speakers. 2. Adding Executive Director as a signer on the EDA MidWest One Bank Accounts Executive Director Lewis introduced this item as presented in the packet. Motion by Commissioner Swenson, seconded by President Remillard to approve the resolution authorizing Executive Director Lewis to become an authorized signer at MidWest One Bank, authorizing her to perform banking and investment duties. All in favor. Motion carried. X. ADJOURNMENT Motion by Commissioner Swenson, seconded by President Remillard to adjourn the August 16, 2023, Economic Development Authority meeting at 8:10 p.m. All in favor. Motion carried. 3 09/13/23 11:26 AM CITY OF CENTERVILLE Page 2 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA ClearedAmountPartially Cleared Check NbrVendor NameCheck DateAmount This MonthNot ClearedLast Month Deposit 83123 eda int9/13/2023($210.58)-($210.58)- 001059 BBKG, LLC6/21/2023$408.50-$408.50- Receipts/Deposits($210.58)($210.58)$0.00$0.00 Payments/Withdrawals $408.50$0.00$0.00 ($210.58) Total Deposits $408.50 Total Checks Written *Next month items not included in Total Deposits & Checks Written (Outstanding + Cleared Checks) THEECONOMICDEVELOPMENTAUTHORITY OFTHECITYOFCENTERVILLE,MINNESOTA RESOLUTION#2023007 RESOLUTIONHONORINGTHESERVICEOFEDAMEMBERSTEVKING. WHEREAS,onAugust20,2023,StevenDouglasKing,asingCityCouncilMemberoftheCityof Centerville,Minnesota,passedawayathishomeindowntownCenterville,withhiswifebyhisside WHEREAS,SteveservedtyearsontheCityCouncil;and WHEREAS,throughhistenure,Steveservedasaliaisontoseveralcityboardsandcommissions;and WHEREAS,was ŋ rstappointedtotheEDACommissiononAugust27,2018;and WHEREAS,hasprovidedexcellentleadership,demonstratediniaveandperseverancethrougha periodofdicultdecisionmakingmesofgreatchange;and, WHEREAS,wasagreatleaderthatwasrespectedbyhisfellowmembers,citystaandelected ocials;and WHEREAS,theEDArecognizesthatwhenanindividualserves,soservestheirfamily,andthe EDArecognizesandacknowledgestheirsacri ŋ ces;and NOW,THEREFORE,BEITRESOLVEDBYTHEECONOMICDEVELOPMENTAUTORITYOFCENTERVILLE, MINNESOTA, th ADOPTEDbytheEconomicDevelopmentAuthorityoftheCityofCentervillethis20dayofSeptember 2023. Aest: _________________________________________________ AthanasiaLewis,ExecuveDirectorMarkRemillard,President CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: September 20, 2023 Administration/EDA VII.1 TITLE OF ISSUE: Partner Agency Report BACKGROUND AND SUPPLEMENTAL INFORMATION: ACRED - In partnership with MN DEED and the 7-county metro county economic developers, the County is hosting a joint webinar for area manufacturers regarding the federal Foreign Trade Zone program on September 27th from 12:00pm-1:00pm. This is an economic development tool that helps business importers/exporters with Customs duty fees on products coming in or out of Minnesota. Quad Area Chamber - The Lunch & Learn - Network in Action - will be held on September 20th from 11:30-1:00pm at Pizza T in Lino Lakes. HBA - The HBA held their semi annual breakfast with the Mayor and he provided an update on the state of the city. See attached summary of updates. Kids n' Biz event will be held on September 30th from 9:00-12:00pm at the Oneka Elementary School gym/cafeteria. See attached brochure describing festivities. COST AND SOURCE(S) OF FUNDING: None REQUESTED ACTION: Update only For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Summary of updates from Hugo Mayor, Kids n Other (specify) ____________ _____ _______________________________________________________________ _____Vacancy _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Highlights from the HBA semiannual breakfast with Hugo Mayor Tom Weidt on September 12, 2023. Infrastructure Projects in CIP Estimated $14.8 million between 2024-2028 2024 Project - 125th Street 159th Street and TH61 Roundabout Birch Tree Ponds Street Improvement Project TH61 and 152nd Street Intersection Improvements Oneka Parkway Improvement Project Downtown Improvements Community Spaces Award Winning Lions Volunteer Park o 346 total rentals since launching in January. Hanifl Gathering Room - 61 Oneka Room - 82 Peder Pederson Pavilion - 142 Rice Lake Centre - 61 Community Developments - Developments th The Shores of Oneka Î 218 single-family homes on the east side of highway 61 at 159 street underway. Rice Lake Reserve Î 20 single family homes Mork's Prairie Î 59 single family homes Road Improvements/Projects The City of Hugo and the Minnesota Department ofTransportation required the th intersection of Highway 61 and 159 Street be improved as part of the new Shores of Oneka Development. Visioning for highway 61 project before receiving the road from the State Public Safety Fire Department - Hiring a full-time Fire Chief Washington County SherrifÓs Office is adding a deputy to Hugo. o Crime incident calls are down 8% from August 2021-August 2023 Conservation Encouraging stormwater reuse Saving over 100 million gallons of drinking water per year Economic Development Authority Monthly Financial Report Month Ended August 31, 2023 % of year 66.67% MTDYTDBudgetVariance% Budget 8/31/202320232023+(-)Used Revenues: 201-46500-39201 Transfers In -$ 36,600 $ 36,600$ -100.00% 201-46500-39500 Use of Fund Balance -$ 20,500 $ 20,500$ -100.00% 201-46500-36210 Interest Earnings211$ 211 $ - 201-46500-36270 Miscellaneous-$ - $ -$ - 201-46500-36270 Refunds/Reimburseme-$ 150 $ -$ 150 Total Revenues211$ 57,461 $ 57,100$ -100.63% Expenditures: 201-46500-100 Wages and Salaries-$ 900 $ 2,400$ 1,50037.50% 201-46500-122 FICA-$ 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- $ - $ 100$ 1000.00% 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 Expenditures-$ 24,557 $ 57,100$ 32,54343.01% NET REVENUE/EXPENDITURES211$ 32,904 $ -$ (32,543) Fund Balance, January 1 less Usage 24,439 Fund Balance, Current57,342 InstitutionInstrument Account #8/1/2023DepositsExpendituresTransfersInterest8/31/2023 MIDWEST ONE EDA CHECKING450232557,540.41 $0.00(408.50) (55,000.00) - 2,131.91 EDA SAVINGS9455503- 55,000.00 210.58 55,210.58 TOTAL57,540.41 55,000.00 (408.50) (55,000.00) 210.58 57,342.49 09/13/23 11:26 AM CITY OF CENTERVILLE Page 1 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA AUGUST 2023 Account Summary Beginning Balance on8/1/2023$57,540.41 Cleared $57,342.49 + Receipts/Deposits$210.58 Statement $57,342.49 - Payments (Checks and Withdrawals) $408.50 Difference $0.00 $57,342.49 Ending Balance as of 8/28/2023 Cash Balance Beginng Balance $57,540.41 Active101-10350 General Fund$0.00 + Total Deposits $210.58 Active201-10350 ECONOMIC DEVELOPMENT FUND$57,342.49 - Checks Written $408.50 Cash Balance$57,342.49 Check Book Balance $57,342.49 Difference $0.00 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: September 20, 2023 Administration/EDA VII.3 TITLE OF ISSUE: Ongoing Programs BACKGROUND AND SUPPLEMENTAL INFORMATION: Blue Logo Sign -- No activity, but offered to Center Market Center Stage -- No activity, but offered to the owner of Harmony Screening, a new tenant in the Witzel Electric building. Harmony Screening provides a variety of screening services for employment. This program was also offered to Onyx Boutique and to Amazon. Business Revolving Loan and Grant Program -- No activity, but the program was offered to Center Market, Onyx Boutique and Humble Roots. COST AND SOURCE(S) OF FUNDING: 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) ____________ _____ _______________________________________________________________ _____Vacancy _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular AdministratorÓs Report September 13, 2023 REMEMBERING STEVE KING It is with heavy hearts that we acknowledge the passing of our dear friend and colleague, Councilmember Steve King. In SteveÓs 10 years of service on the City Council, he became known as someone who was not afraid to be the lone voice of dissent on any given issue; often championing the cause of the less fortunate. Moreover, he earned the respect of his fellow councilmembers by his ability to disagree and debate with civility and thoughtfulness. For his constituents, Steve was a strong advocate, often calling state and federal politicians and agencies directly to inquire about new laws and policies. Steve was many things to many people, including school bus driver, barber, and Air Force veteran, to name a few. What he was to all of us was an indelible part of our community. He will be deeply missed. ENGINEERING th 20 Avenue (CSAH 54) Corridor Study The first of several community engagement meetings was held on Tuesday, August 29, at Centerville City Hall. Over 50 local residents and business owners, took the opportunity to give the design team their perspective on the issues being examined by the study, including business access, safety, traffic flow, bike and pedestrian facilities, and aesthetics. ThereÓs still plenty of time to give your input, if you were not able to attend the meeting. Use the QR code to access the project survey or visit the project website . To directly contact the study team: Anoka County Project Manager: Jack Forslund, Transportation Planner jack.forslund@co.anoka.mn.us or (763) 324-3179 TC2 Contact: Matt Pacyna, PE, Principal mpacyna@transportationcollaborative.com or (612) 464-3800 VOLUNTEER OPPORTUNITIES City Council Î Open Seat With the passing of Mr. King, there will be an open seat on the City Council. We anticipate the City Council will declare a vacancy at their September 27 meeting and begin accepting applications to fill the remainder of Mr. KingÓs term, which runs through the end of 2024. Typically, the City Council will interview interested candidates and then make an appointment to fill the seat. There will not be a special election. 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 September 20, 2023,6:30 p.m. Î Economic Development Authority September 27, 2023, 6:30 p.m. Î City Council October 3, 2023, 6:30 p.m. Î Planning & Zoning Commission October 4, 2023, 6:30 p.m. Î Parks & Recreation Committee History Niche Î New Installation We recently completed installation of a new exhibit, titled, ÐA Scouting Narrative.Ñ The exhibit features a narrative of scouting throughout the region, and the display was made possible through a partnership with the Anoka County Historical Society (ACHS) as well as scouts in the region, specifically: Cub Pack 432 and BSA Troop 136. WeÓd love for you to stop by with your friends and family during business hours to check out our newest exhibit! A picture of the exhibit is shown below. Metro Cities Annual Report Centerville is a member of Metro Cities, an advocacy group which works in tandem with the League of Minnesota Cities to track and influence legislation related to city government. Our membership in this organization ensures our voices are heard at the capital. This past year, it was particularly important that we be engaged in the lawmaking process, as a record number of bills were introduced and passed. Many of these bills had serious implications for cities. Things like public safety funding, adult use cannabis and paid employee leave were all addressed. For a summary of the work Metro Cities did on behalf of us and its other member cities, please take an opportunity to review their annual report PARKS & RECREATION Annual Movie in the Park Bring your lawnchairs, blankets, family and friends to Laurie LaMotte Memorial Park to watch DC League of Superpets, (from Warner Animation Group) on Saturday, September 16, 2023, at 7:30 p.m. or dusk. Popcorn and lemonade will be served by the Parks Committee. In case of rain, the event will be rescheduled for Saturday, September 23, 2023. nd 2 Annual Trunk or Treat & Halloween Hustle 5K The Committee is again planning this event, in collaboration with the Centennial Community Education Department and Centennial Alumni Assoc. The event will take place on Saturday, October 28, 2023, from 9:30 a.m. Î 11:30 a.m. Public Safety (PD/FD), a City Snowplow and M-Health Fairview Ambulance will be on hand with their vehicles, adding Touch-a-Truck to the event. Facepainting by Linda will also be onsite and is free. There were more than 200 participants last year. To register for the 5K, click here. Check-in is @ 8:45 a.m., run @ 9:00 a.m. To register for a booth at the Trunk or Treat event, click here, CENTERVILLE CARES In September, we celebrate National Recovery Month to recognize those who have made progress in recovery from substance use disorder. Since 1989, National Recovery Monthly Month has been recognized annually to support new treatment and recovery practices, the recovering community, and service providers. We encourage you to help support a friend or loved one who may be experiencing addiction. Check out the National Recovery Month Partner Toolkit here to learn more about ways you can help. ECONOMIC DEVELOPMENT Quad Area Chamber Calendar September 14, 2023 Î Monthly Board Meeting Î 12:00PM - 1:00PM -- Online September 20, 2023 Î Lunch & Learn Î Network in Action Î 11:30AM-1:00PM Î Pederson Pavilion Lions Volunteer Park o October 12, 2023 Î Monthly Board Meeting Î 12:00PM -1:00PM -- Online Hotel Study Update st The hotel feasibility study on 21 Avenue North on the site north of NorBella has recently been completed. The landowner is reviewing preliminary results and the final report will be shared in the coming weeks. Upcoming Ribbon Cuttings October date under review for Amazon PUBLIC WORKS Seasonal Public Works Staff This summer, our seasonal public works staff completed a number of important tasks across all aspects of the cityÓs infrastructure and services, including: Water: o Flush hydrants city wide o Exercise all gate valves o Repair gate valves/ extensions o Paint 40% of hydrants Sanitary sewer: o Reset /ramp approx. 30 manholes Storm sewer: o Clean/inspect/repair all ponds and outlets required for MS4 reporting o Clean catch basins city wide after all storm events Streets: o Patched city wide as needed o Replaced old/damaged signs as needed o Repainted cross walks Parks and Trails: o Replaced old garbage receptacles with new dual units o Repainted pickle ball court o Weed removal city wide o Brushed back problem areas city wide o Patched as needed o Continuous weeding/pruning downtown area Special projects: o New landscaping behind city hall o Relocated monument sign at Tracy McBride park o Paint salt shed at public works o Assist with city events: Fete des Lacs Music in the Park Main Street Market Sidewalk Repairs The cityÓs contractor has begun work on sidewalk repairs at various locations around town. In total, more than 240 broken panels will be replaced, making our city a much safer place to walk. Water Tower Repairs The cityÓs contractor is working on spot repairs to the water towerÓs coating system (paint). The work will take about 3 weeks, weather dependent. Can you spot the worker on the tower? Public Works Truck Replacements Public Works Director, Paul Palzer spoke with the Chevy Dealer who represents the state bid for their trucks and was able to place our order for the three trucks identified in our Capital Replacement Plan. There is, however, talk of a labor union strike which could affect the order and/or delivery timeframe. Anoka County Park Reserve Road Reconstruction County Parks staff has inquired about the possibility of using Mound Trail as a detour route for park-goers while the road into the park is reconstructed. Details will be shared, in the near future, with the City Council for a decision on whether or not to allow this arrangment. City Hall Parking Lot Lighting Staff met with the contractor, engineer and public works director to go over installation details and scheduling. Materials are now being ordered and could take up to 6 weeks for delivery. In the meantime, the contractor will be on site to install the concrete bases, conduits and other preliminary items. CENTENNIAL LAKES POLICE DEPARTMENT Police Governing Board The Centennial Lakes Police Governing Board met on August 14 and conducted the swearing-in of 3 new officers, the promotion of Officer Schroeder to the rank of Corporal and the witnessed the presentation of the American LegionÓs Officer of the Year award to Corporal John Krueger. After all the pomp and circumstance, the board considered and ultimately approved the 2024 budget for the department. 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. The meeting also included a thorough discussion of the tri-city funding formula. Various proposals for adjusting the formula were brought forward. The board tabled the item for further research and discussion. The next regularly scheduled meeting of the Police Governing Board is November 13, 2023 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 remodel to better facilitate training needs. 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. There are just a few remaining items, including trim, touch-ups, and carpet installation. We are hoping things will be completed by the end of September. COMMUNITY DEVELOPMENT Block 7 Property (Downtown) Kennedy Property Development Kennedy Property Development (KPD) has submitted an informal proposal to the city for the development of Block 7, with row-style townhomes, similar to those proposed by Centra Homes. Their proposal includes some additional requests for city fee reductions, beyond what previous proposals have sought. The City Council will review this request at their next meeting. 1737 Main Street (Block 3) The developer is working with their engineer to find a more economically feasible stormwater solution and continues to shop various elements of the construction project to stay within budget. 7087 Centerville Road Î Connor James Salon (Block 8) A grand opening was held on August 31 with a nice turn-out of supporters. The business is looking for stylists to fill out their capacity. The property owner updated city staff on the plan to complete the required fencing and minor landscaping behind the building. Both are on track to be completed this season. 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. Staff has engaged with our TIF consultant to look at the preliminary feasibility of using TIF on this proposed project and to get an idea of how much increment could be provided, if necessary. stnd Old Mill Estates 1 and 2 Additions The paving of the trail between Old Mill Court and Laramee Lane was completed on August 30. The northern portion of this connection will be concrete. The concrete is scheduled to be poured the middle of next week. The developer has also made strides towards close-out of the watershed permit. Securities are being held until this permit is released. 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 Developer securities have been reduced to 35% of the initial project costs and will be held through the 2- year warranty period, which will end in 2024. Kwik Trip Work is complete. We are working with the developer to close out the project. Rehbein Industrial Developer securities have been reduced to 35% of the initial project costs and will be held through the 2- year warranty period, which will end in 2024. 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 Amazon staff have been in contact with city staff regarding the possibility of a ÐGrand OpeningÑ in the near future. Stay tuned for details. Amazon staff has also reached out to collaborate with the city and area organizations on service projects. th One initial idea being explored is an adoption of County Road 54 (20 Ave) and a portion of Main Street th between 20 Avenue and the 35E Bridge. A response to the initial floodway modeling submittal has now been received from FEMA. The consultant is working through a resubmittal. Development Inquiries Employment Screening Company looking for office space to lease. Realtor representing Ðfast casualÑ restaurant looking for tenancy. COMMUNITY ENGAGEMENT (August 2023) Web Site (3,100 Unique Visitors, 4,700 Total Visits) Corridor Study Open House 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 Steve King announcement Watering Ban schedule Corridor Study Open House Social Media (535 Twitter; 745 FB Followers) (XX/XX Impressions) City Accounts (545 Twitter; 755 FB Followers) o 8/2 Anoka Co. Waste Management Survey (64/294) o 8/7 CC Agenda (106/318) o 8/16 Repost: CLPD Swearing-in, Corporal promotion & Officer of the Year Award (XXX/NA) o 8/23 Steve King announcement (268/2028) o 8/24 LMC Award Presentation (913/280) th o 8/28 20 Ave Corridor Study Open House Notice (116/667) Music in the Park (910 FB Followers) Main Street Market and Waterski Show (822 FB Followers) Centerville Fete des Lacs (1,5XX FB Followers) Website (August) 3.1k users o 1.5k new o 1.6k returning 4.7k page views Community Email List (247 email addresses) 8/09 & 8/23 Upcoming CC Agenda, Admin Report & Newsletter Business Email List (60 email addresses) 8/23 Council Member King 8/29 Availability of rental space 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: September 20, 2023 Administration/EDA VIII.1 TITLE OF ISSUE: Revolving Loan and Grant Guidelines BACKGROUND AND SUPPLEMENTAL INFORMATION: At the last EDA meeting, the Board expanded their Revolving Loan and Grant Guidelines to include local businesses and non-residential real estate owners. Staff has incorporated these revisions in preparation for continued discussion on program guidelines. Marked-up and clean versions of the guidelines are included in the packet for your review. COST AND SOURCE(S) OF FUNDING: REQUESTED ACTION: For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other _____ _______________________________________________________________ _____Vacancy _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY REVOLVING LOAN AND GRANT PROGRAM (RLGP) APPLICATION PACKET September May 2018, 20232 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 local businesses and non-residential 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 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 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 local businesses and non-residential real estate owners 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 local businesses and non-residential real estate owners. 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 local businesses and non-residential real estate owners 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 3 will be replenished by an annual contribution of $10,000 from HRA income and any interest and principal repayments resulting from outstanding loans. 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 local businesses and non-residential real estate owners, 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 local business or non-residential real estate owner, 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. Local bBusinesses or non-residential real estate owners receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Types of local businesses or non-residential real estate owners 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, local businesses or non-residential real estate owners 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 - commercial 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 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 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 commercial 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 9 10 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 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. 11 CENTERVILLE REVOLVING LOAN PROGRAM APPLICATION FORM I. APPLICANT INFORMATION Local Business Owner or Non-Residential Real Estate OwnerÓs Name(s): 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 Local Business or Non-Residential Real EstateProperty Owner: Address: Phone: ________________ E-Mail Address: 12 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: ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs Signature Date ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs Signature Date 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 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. 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 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 17 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT APPLICATION Local Business or Real Estate 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 GRANT REIMBURSEMENT REQUEST Local Business or Real Estate 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 September 20, 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 local businesses and non-residential 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 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 local businesses and non-residential real estate owners 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 local businesses and non-residential real estate owners. 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 local businesses and non-residential real estate owners 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 3 will be replenished by an annual contribution of $10,000 from HRA income and any interest and principal repayments resulting from outstanding loans. 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 local businesses and non-residential real estate owners, 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 local business or non-residential real estate owner, 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. Local businesses or non-residential real estate owners receiving RLGP loans shall not have more than five (5) or more locations, franchises, or chains. C. Types of local businesses or non-residential real estate owners 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, local businesses or non-residential real estate owners 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 - commercial 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 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 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 commercial 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 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 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 Local Business Owner or Non-Residential Real Estate Owner Name(s): 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 Local Business or Non-Residential Real Estate Owner: Address: Phone: ________________ E-Mail Address: 11 Does the applicant occupy the total building? Yes _____ No _____ 12 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: ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs Signature Date ___________________________________________ ____________________ Local Business or Non-Residential Real Estate OwnerÓs 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 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: 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 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 Local Business or Real Estate 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 17 CITY OF CENTERVILLE REVOLVING LOAN AND GRANT PROGRAM GRANT REIMBURSEMENT REQUEST Local Business or Real Estate 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 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 purposes 19 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: September 20, 2023 Administration/EDA VIII.2 TITLE OF ISSUE: Business Appreciation BACKGROUND AND SUPPLEMENTAL INFORMATION: At their last meeting, the EDA began discussing their annual business appreciation event. The EDA asked staff to check availability at Kelley's and report back on findings next month. COST AND SOURCE(S) OF FUNDING:$500-$1000 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 ItemDepartment: RequestedMeetingDate: September 20, 2023 Administration/EDA TITLE OF ISSUE: Trunk or Treat - October 28th at Centerville Elementary BACKGROUND AND SUPPLEMENTAL INFORMATION: Parks and Recreation is having their second annual Trunk or Treat event and they are requesting that the EDA consider participating by doing one or more of the following: 1. Have a trunk of your own to decorate and hand out candy, 2. Purchase the candy an trinkets to be passed out by Parks and Rec., 3. Pay for the Face Painter ($200), 4.5. Purchase juice boxes or small bottles of water to be given out at the event Last year the EDA co-sponsored and donated $300.00 toward the Trunk or Treat event. See the attached Letter for additional information. COST AND SOURCE(S) OF FUNDING: $300.00 REQUESTED ACTION: SUPPORTED DOCUMENTS ATTACHED Resolution Ordinance Contract Minutes Plan Map Motion By: ____________________________________ Second By: ____________________________________ Vote Record: AyeNay ____ Letter to businesses Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular September 7, 2023 Dear Centerville Businesses: nd The Centerville Parks & Recreation Committee is on its 2 year of holding a ÐTrunk or TreatÑ event along with the Centennial Community Education/Centennial Alumni AssociationÓs Halloween Hustle 5K. The Committee is beginning planning earlier, in an attempt to get local businesses out and provide you with this fun event that will allow you to get your business name out to local runners and their families. The goal of the ÐTrunk or TreatÑ event is to add additional offerings, post-race, for families with kids. This yearÓs ÐTrunk or TreatÑ event will run from 9:15 a.m. Î 11:30 a.m. on Saturday, October 28, 2023 in the Centerville Elementary School parking lot south end. We would request that participants be in place with your vehicle and decorations completed by 9:30 a.m. If you would like to participate in handing out candy, spooky items (bubbles, plastic jumping spiders, business cards, coupons, etc. we would love to have you. Above are photos from last yearsÓ event. There were well over 200 individuals that visited business booths, community service organizations and a ÐTouch a TruckÑ event which contained public safety vehicles, City snowplow and a school bus) to obtain information (coupons, trinkets/candy, employment opportunities, honk a horn, etc.) We anticipate that this yearÓs event will be similar. Please confirm participation by completing the registration form by October 23, 2023. Here is a link: click here or utilize the QR Code below. If you have questions, please do not hesitate to contact us at: 651-792-7933 and thank you in advance for entertaining your participation this year. Sincerely, Wtxsx Txrz~}<Vpwtz Chair, Parks & Recreation Committee P.S. DonÓt forget to register online for the Halloween Hustle 5K by clicking here or utilize the QR Code below. The run is a collaboration between Centennial Community Education and the Centennial Alumni Association. Proceeds will benefit the Centennial School District and the Centennial Alumni Scholarship Fund.