11/7/17 Shakopee EDA Agenda

Shakopee Economic Development Authority
November 7, 2017
7:00 PM
City Hall 485 Gorman St.
1. Roll Call
2. Approval of Agenda
3. Consent Business
3.A. EDA Bill List
3.B. EDA Minutes
4. General Business
4.A. Award of a facade loan to Holmes Street Property LLC for 116, 118, 120 Holmes
Street
5. Adjourn to Tuesday, December 5, 2017 at 7 p.m.
Note to EDA Members:

If you have any questions or need additional information on any of the above items, please call Michael Kerski, prior to
the meeting at (952)233-9346.
Page 1 of 19
3.A.

November 7, 2017
FROM: Darin Nelson

TO: EDA Commission Members
Subject:
EDA Bill List
Policy/Action Requested:
Move to approve bills in the amount of $798,071.35 for the EDA Fund, which allows for
internal charges that are applied to the EDA fund.
Recommendation:
Approve
Discussion:
Attached is a listing of bills for the EDA for the period 10/4/2017 to 11/7/2017. Payments
are for general office supplies, attorney & professional service fees.
Payments to Northland Escrow/Urban Co for the Downtown/101 Corridor Project

totaling, $532.000.00.
RJM Construction payment also for the Downtown/101 Corridor Project, $50,677.80.
Faade Loan payments to Duane Wermerskirchen for $8,958.25 and Schwaesdall

Properties for $30,000.00.
Budget Impact:
N/A
ATTACHMENTS:
Monthly Financial Report

EDA Check Register
Page 2 of 19
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Page 3 of 19
11/3/2017 8:47:03 AM Page 1 of 1
('$&RXQFLO&KHFN5HJLVWHU
3HULRGWR
Check # GL Date Ck Date Total Amount Vend # Description Remark BU Obj Project Doc # Date - Batch (Julian)
1257+(51(6&52:,1&*85%$1&2 '2:172:1,03529(0(176 '2:172:1&255,'25352-(&7 ,03529(0(176
Check Total 269,562.50
5-0&216758&7,21 '2:172:1&255,'25352-(&7 (1*,1((5,1*'(6,*1&2168/7$176
:(50(56.,5&+(1'8$1( ('$0$1$*(0(17 27+(5352)6(59,&(6 ,03529(0(17/2$1352*5$0
&(1785</,1. 6HS ('$0$1$*(0(17 7(/(3+21(
&(1785</,1. 2FW ('$0$1$*(0(17 7(/(3+21(
Check Total 2.26
:6% $662&,1& &200(5&,$/6,7( ('$0$1$*(0(17 (1*,1((5,1*'(6,*1&2168/7$176
:6% $662&,1& &,7<+$//+$=0$7 ('$0$1$*(0(17 (1*,1((5,1*'(6,*1&2168/7$176 2/'&,7<+$//6,7(7,)
:6% $662&,1& '2:172:1,03529(0(176 '2:172:1&255,'25352-(&7 (1*,1((5,1*'(6,*1&2168/7$176
%5$81,17(57(& '2:172:1&255,'25352-(&7 ,03529(0(176
(',/,0,7(' '2:172:1,03529(0(176 '2:172:1&255,'25352-(&7 (1*,1((5,1*'(6,*1&2168/7$176
Page 4 of 19
Check Total 560.00
-.'(6,*16,1& 67$78('2:172:1 '2:172:1&255,'25352-(&7 (1*,1((5,1*'(6,*1&2168/7$176 606&67$78(
0$<(5(/(&75,&&253 '2:172:1352-(&7 '2:172:1&255,'25352-(&7 ,03529(0(176
1257+(51(6&52:,1&*85%$1&2 '2:172:1,03529(0(17 '2:172:1&255,'25352-(&7 ,03529(0(176
352)(66,21$/6(59,&(,1'8675,( '2:172:1,03529(0(17 '2:172:1&255,'25352-(&7 (1*,1((5,1*'(6,*1&2168/7$176
5-0&216758&7,21 '2:172:1352-(&7 '2:172:1&255,'25352-(&7 ,03529(0(176
6&+:$(6'$//3523(57,(6 )$&$'(/2$1 ('$0$1$*(0(17 27+(5352)6(59,&(6 ,03529(0(17/2$1352*5$0
75$)),&&21752/(48,30(17,1& '2:172:1,03529(0(17 '2:172:1&255,'25352-(&7 ,03529(0(176
:$51,1*/,7(62)01 '2:172:1,03529(0(17 '2:172:1&255,'25352-(&7 ,03529(0(176
Page 1 of 2
('$&RXQFLO&KHFN5HJLVWHU
3HULRGWR
Check # GL Date Ck Date Total Amount Vend # Description Remark BU Obj Project Doc # Date - Batch (Julian)
:6% $662&,1& (6$&,7<+$// ('$0$1$*(0(17 (1*,1((5,1*'(6,*1&2168/7$176 2/'&,7<+$//6,7(7,)
:6% $662&,1& (6$5(6,'(17,$/+20( ('$0$1$*(0(17 (1*,1((5,1*'(6,*1&2168/7$176 5,9(5)52177,)
-.'(6,*16,1& 67$78(5(6725$7,21 '2:172:1&255,'25352-(&7 27+(5352)6(59,&(6
.(11('< *5$9(1&+57' $1&+25*/$660,)/2$1 ('$0$1$*(0(17 $77251(< $1&+25*/$66%8668%6
.(11('< *5$9(1&+57' '2:172:15('(9385&+$6($*5((0 ('$0$1$*(0(17 $77251(< 2/'&,7<+$//6,7(7,)
.(11('< *5$9(1&+57' 9,(5/,1*'5(;7(16,21 ('$0$1$*(0(17 $77251(< '(9(/230(17
.(11('< *5$9(1&+57' 0,6&(&2120,&'(9(/230(17 ('$0$1$*(0(17 $77251(< '(9(/230(17
2175$& '2:172:1352-(&7 '2:172:1&255,'25352-(&7 27+(5352)6(59,&(6
Check Total 46.99
6+$.23((38%/,&87,/,7<&200 :$7(50$,13/$15(9,(: ('$0$1$*(0(17 /$1' '(9(/230(17
6+$.23((38%/,&87,/,7<&200 :$7(50$,13/$15(9,(: ('$0$1$*(0(17 /$1' '(9(/230(17
Check Total 0.00
6+$.23((38%/,&87,/,7<&200 ('$0$1$*(0(17 /$1' '(9(/230(17
Page 5 of 19
:6% $662&,1& ('$0$1$*(0(17 (1*,1((5,1*'(6,*1&2168/7$176 &$17(5%85<3$5.5('(9(/230(17
6+$.23((0217+/<$//2&$7,21 ,7,6)5(17 ('$0$1$*(0(17 62)7:$5($118$/)((6,6)81'
6+$.23((0217+/<$//2&$7,21 %/'*3$5.$66(7,6)5(17 ('$0$1$*(0(17 %8,/',1*5(17,6)81'
Check Total 483.34
798,071.35 GRAND TOTAL
Page 2 of 2
3.B.

November 7, 2017
FROM: Lori J. Hensen, City Clerk

TO: EDA Board
Subject:
EDA minutes from October 3, 2017
Approve the minutes from October 3, 2017.
Recommendation:
Approve the above motion.
Discussion:
Budget Impact:
ATTACHMENTS:
October 3, 2017
Page 6 of 19
MINUTES
October 3, 2017
7:00 PM
City Hall 485 Gorman St.
1. Roll Call
Present: Chairman Matt Lehman, Commissioner Kathi Mocol, Commissioner Jay Whiting,
Commissioner Bill Mars, Commissioner Mike Luce
Staff Present: Administrator Bill Reynolds, Assistant Administrator Nate Burkett, City
Attorney Jim Thomson, Engineering and Public Works Director Steve Lillehaug, Finance
Director Darin Nelson, Planning and Development Director Michael Kerski, Human
Resources Director Jennifer Gabbard. Parks and Recreation Director Jamie Polley, Chief
of Police Jeff Tate, City Clerk Lori Hensen
2. Approval of Agenda
Commissioner Kathi Mocol made a motion to approve agenda, seconded by Commissioner

Jay Whiting and the motion passed.
5-0
3. Consent Business
Commissioner William Mars made a motion to approve consent agenda as presented,

seconded by Commissioner Jay Whiting and the motion passed.
5-0
3.A. EDA Bill List
3.B. EDA Minutes
4. General Business
5. Adjourn to Wednesday, November 8, 2017 at 7 p.m.
Commissioner Kathi Mocol made a motion to adjourn to November 8, 2017 at 7:00 p.m.,
seconded by Commissioner William Mars and the motion passed.
5-0
Page 7
1 of 19
1
4.A.

November 7, 2017
FROM: Michael Kerski, Director of Plannign & Development

TO: President and Board Members
Subject:
Holmes Street Property LLC (Jeff Pflaum) has requested a faade loan of $75,450 for
116,118,120 Holmes Street to renovate the faade in keeping with Downtown Design
Guidelines.
Approval of a faade loan to Holmes Street Property LLC for 116-120 Holmes Street for
renovation of the faade in keeping with Downtown Design Guidelines.
Recommendation:
Staff recommends the loan but will leave it to the EDA to make the final dollar
amount allocation. The current policy (attached) states "The City may fund up to a
maximum amount of 50 % eligible projects cost. Loans typically will not exceed $30,000.
Larger amounts may be considered for critical or keystone projects that have a larger impact
on the community."
Discussion:
The applicant is proposing to renovate the structure using the Downtown Design Guidelines
and in fact this particular building is featured in the guidelines. Proposed eligible expenses
are $158,900 since they have removed the cost of the new roof from the eligible expenses.
The building is significant as part of the historic streetscape on Holmes and the Applicant has
proposed restoring the appearance of the windows on the second floor and a more historic
storefront. The lower portion is currently a cream colored brick and the upper portion is
stucco. The new windows and arches on the upper story will require reworking of the
stucco. Staff would recommend that in that process the underlying brick be examined to see
if it can be exposed. Staff would also recommend additional research be done so that the
cornice at the rooftop be more in keeping with the historic nature of the building.
Staff recommends that the Applicant provide the EDA with a second estimate of all costs
prior to any work beginning. Also, the Applicant will need to provide a more detailed
Page 8 of 19
architectural drawing of the proposed work to ensure compliance with the Design Guidelines
prior to staff approving the loan recordation.
Budget Impact:
The fund currently has a $92,250 balance remaining for 2017.
ATTACHMENTS:
Application
Facade Improvement Loan Program
Page 9 of 19
Page 10 of 19
Page 11 of 19
Page 12 of 19
Page 13 of 19
Page 14 of 19
Page 15 of 19
City of Shakopee, Minnesota
Economic Development Authority for the City of Shakopee
FACADE IMPROVEMENT PROGRAM
For the purposes of this document, the term City includes the Shakopee City Council, staff, the Economic
Development Authority, advisory boards and commissions, financial consultants, and legal counsel.
PURPOSE
The City of Shakopees Commercial Faade Improvement Program (FIP) provides financial
support through a deferred loan to commercial property owners and business owners in the
historic Downtown area and along Shakopees commercial corridors. The purpose of the FIP is
to support the revitalization of historic Downtown Shakopee and the Citys commercial areas by
stimulating private investment in high-quality improvements that enhance the appearance of
buildings and proprieties and eliminate blight and buildings that dont meet current design
standards.
The Economic Development Authority for the City of Shakopee, using its housing and
redevelopment authority powers, created the Faade Improvement Program (FIP) in order to
eliminate or prevent blight.
The City reserves the right to approve or reject projects on a case-by-case basis, taking into
consideration established policies, project criteria, and demand of City services in relation to the
projects potential benefits. Meeting policy criteria does not guarantee the award of business
assistance to the project. Approval or denial of one project is not intended to set precedent for
approval or denial of another project.
The City can deviate from this policy for projects that supersede the objectives identified herein.
PROGRAM ELIGIBILTY
The Commercial Facade Improvement Program provides a one-time forgivable loan for eligible
faade improvements. Eligible applicants are owners of commercial properties or purchasers of
properties that have a contract on an eligible property that they will be renovating upon closing
on the property.
The intent of the FIP is to revitalize older commercial buildings within the City that are built prior
to 1980. Building renovations in the Downtown should adhere to the extent practicable to the
City of Shakopee Downtown Design Guidelines, 1999, to have the maximum impact.
2016 Page 1
Page 16 of 19
ELIGIBLE EXPENSES
For the purposes of this program, eligible expenditures shall include expenses related solely to
those exterior improvements that are eligible for the program, as outline in the program
guidelines and as determined by the City. Expenditures excluded are those related to interior
improvements; ordinary repair and maintenance; improvements as a required as a result of a
code violation; or other expenses deemed ineligible by the City.
Eligible improvements include those items visible from the street, including: exterior
building improvements (cosmetic and/or structural); signage; lighting and landscaping.
Examples include, but are not limited to: exterior painting or surface treatment;
decorative awnings; window and/or door replacements or entrance modifications;
storefront replacements or enhancements; streetscape; outdoor patios and decks;
exterior wall lighting; restoration of architectural features. Landscaping expenses, when
part of a larger project, may be included but should not exceed more than 10% of the
total project costs. Fees for architects, engineers or other design professionals may
also be considered as part of the project costs.
Improvements or repairs that are required as a result of a violation or citation are not
eligible for funding through the FIP. However, improvements that are the result of
voluntary compliance and the applicants desire to bring a property into conformance
with the Citys current design standards will be considered.
Improvements will be considered as part of a total project. For instance, if the applicant
proposes to replace the windows, the City may recommend that sills also be repaired or
replaced.
Site furnishings, amenities, non-permanent structures or improvements or movable

equipment are not eligible for funding through the FIP.
All improvements must obtain any required approvals and/or permits.
Any renovations that are solely the result of ordinary repair and maintenance are not
eligible for funding through the FIP. Ordinary repair and maintenance is defined as any
work, the purpose and effect of which is to correct or prevent any deterioration or decay,
or damage to, a structure, site or any part thereof and to restore the structure or site, as
nearly practicable, to its condition prior to such deterioration, decay, or damage using
materials that are of a design, color and outer appearance as close as practicable to the
original. Roofs will be considered under extenuating circumstances.
Exclusions to this clause may be made when a new owner purchases a structure and is
renovating the structure and the deterioration has not been caused by the new owner or any
affiliate or agent.
2016 Page 2
Page 17 of 19
FUNDING
(1) The program provides a one-time forgivable loan for eligible expenses. These
improvements must be visible from the exterior and meet the eligible expense
requirements.
(2) The City may fund up to a maximum amount of 50 % eligible projects cost. Loans
typically will not exceed $30,000. Larger amounts may be considered for critical or
keystone projects that have a larger impact on the community.,
(3) The term of the loan shall not exceed 20 years. Payments on the loan will be deferred
and will be forgiven if the applicant satisfies the terms of the loan agreement.
(4) Loan forgiveness takes place over a five-year period with 20 percent of the award
forgiven annually. The City may extend or reduce the repayment period based on the
dollar amount of the award. The table below should be used as a guideline:
Amount of Award Repayment Period

Up to $30,000 5 years
$30,001-$47,500 7 years
$47,501-$65,000 10 years
$65,001-$85,500 15 years
$85,501-$100,000 20 years
(5) If the benefiting building is sold within the period of the loan, the loan must be repaid.
The City may consider alternatives to immediate repayment, including but not limited to
transfer of the loan to a new owner or a mutually agreeable loan repayment schedule.
(6) The applicant has one year from the award date of the loan to complete the project and
request payment of loan funds. All loan funds will be paid to an applicant upon receipt of
evidence of paid invoices for the project along with a release of any and all mechanics or
contractors liens.
(7) The applicant must maintain the property during the repayment period. Failure to do so
may cause the loan to become payable in full.
(8) The maximum loan at any one time is $30,000. Any revisions to the loan may require an
extension to the repayment period. A faade improvement loan may be applied for every
five years that rolls with the total amount of $30,000. E.g.: A project borrows $15,000 in
year one, and in year three, they request another $15,000. The total amount of $30,000
would have a new five-year repayment period.
2016 Page 3
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APPLICATION PROCESS
(1) Applications must be submitted by the property owner(s) or the building tenant in
conjunction with the owner(s). The application shall become the property of the City
and/or EDA and is subject to Minnesota Statutes, Chapter 13 (the Government Data
Practices Statute).
(2) Loan recipients are required to seek at least two bids for all projects. It is assumed that
the contractor who submits lowest bid will be hired to complete the improvements unless
mitigating circumstances exist.
(3) Funds for this program are limited and will be awarded to qualifying applicants on a first-
come, first-served basis.
(4) City staff shall review the application materials and make a preliminary recommendation
regarding the completeness of the application and whether the application meets the
criteria outlined in this policy.
(5) In the event that the EDA Board concurs with the recommendation above, the EDA
Board will grant final approval or denial of the loan.
REPORTING REQUIREMENTS
Loans that are less than $75,000 are not subject to reporting under Regulating Local and
State Business Subsidies, Minnesota Statute 116J.994.
Loan amounts above $75,000 are considered financial assistance under Regulating
Local and State Business Subsidies, Minnesota Statute 116J.994, and should be
reported on the Minnesota Financial Assistance Form for Non-JOBZ Projects.
2016 Page 4
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11/7/17 Shakopee EDA Agenda

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Shakopee Economic Development Authority

Note to EDA Members:

Shakopee Economic Development Authority

FROM: Darin Nelson

Payments to Northland Escrow/Urban Co for the Downtown/101 Corridor Project

Faade Loan payments to Duane Wermerskirchen for $8,958.25 and Schwaesdall

Monthly Financial Report

798,071.35 GRAND TOTAL

Shakopee Economic Development Authority

FROM: Lori J. Hensen, City Clerk

Commissioner Kathi Mocol made a motion to approve agenda, seconded by Commissioner

Commissioner William Mars made a motion to approve consent agenda as presented,

5. Adjourn to Wednesday, November 8, 2017 at 7 p.m.

Shakopee Economic Development Authority

FROM: Michael Kerski, Director of Plannign & Development

FACADE IMPROVEMENT PROGRAM

Site furnishings, amenities, non-permanent structures or improvements or movable

All improvements must obtain any required approvals and/or permits.

Amount of Award Repayment Period

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