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VI.2. Design Assistance and Façade Improvement Grant Program; Amy Morgan (CR2015-083) July 21, 2015 Council Report 2015-083 Design Assistance and Façade Improvement Grant Program Proposed Action Staff recommends adoption of the following motion: Move to approve the guidelines of the Design Assistance and Façade Improvement Grant Program. Overview Hopkins’ Mainstreet is a valued part of the City. It displays a unique character and charm and provides insight into the history of Hopkins. Through the Design Assistance and Façade Improvement Grant Program, downtown property owners will have the chance to beautify their facades and improve the vitality of Mainstreet with the help of grant funds and design assistance from Wilkus Architects. Hennepin County, through funding from McKnight Foundation, has agreed to fund this pilot façade program up to $100,000. The McKnight funds are intended to connect transit, jobs, and workforce development at pilot areas along the Southwest LRT line. With these grant funds, the City would need to provide local support to the design assistance component, with an estimated cost of $5,000. The Design Assistance and Façade Improvement Grant Program is a 1-year, pilot program. With outside funds for the first year, the City will be able to assess this program at minimal cost. City staff will be able to learn what was successful, what could be improved, how much staffing is required for this type of program, and what the future demand might be in regards to property owners’ interest in the program. Primary Issues to Consider  What are the goals of the program?  What are the concerns of the program?  What would be the process for the business to receive a Design Assistance and Façade Improvement Grant? Supporting Documents  Design Assistance and Façade Improvement Grant Program Guidelines  Application for the Design Assistance and Façade Improvement Grant Program Amy Morgan Economic Development Intern Financial Impact to the City: $5,000 budgeted from the Economic Development Account Analysis of the Issues What are the goals of the program?  Strengthen the vitality of Mainstreet – Investing in façade improvements on Mainstreet will lead to a more attractive public space which will draw in visitors and community members alike. More people using the space downtown will lead to increased business activity and can continue to spur economic growth within this area.  Improve the pedestrian experience – Improving and enhancing building facades will add to the unique charm of Mainstreet, making the already walkable area a more attractive and enjoyable place to be.  Increase building transparency – Increasing building transparency allows for a more eye- catching space that is likely to draw in customers, as well as improve the visual experience from within the buildings.  Restore and beautify downtown building facades – This will allow the downtown area to enhance its unique character and bring back life to the already quaint Mainstreet. What are the concerns of the program?  Staffing/Administration – The staffing demand for this program is currently unclear. The City has implemented a program similar in the past, the Commercial Rehab Loan and Façade Grant, which provides insight into what we might be able to expect. However, by approving this pilot program, City staff will be able to determine what the staffing demands will be if this program is to continue past the first year.  Unsure of Demand – This program offers a large incentive for property owners to participate. Since this is a new program, city staff is unsure of what the interest may be (i.e. how many applicants, the size of their projects, and amount of funding for a typical project). City staff has come up with criteria against which projects will be assessed and then chosen if there is a higher demand than funds allow. What would be the process for a property owner to receive a Design Assistance and Façade Improvement Grant? The process for property owners to obtain a grant from this program is as follows: 1.Complete grant application and submit all require materials to the City of Hopkins Planning and Economic Development staff 2.If project is selected, meet with City staff and Wilkus Architects to develop preliminary plans and project budget for your façade improvements. The City of Hopkins will pay for the preparation of façade concept plans through a cooperative relationship with Wilkus th Architects, who are located in Hopkins at 15 9 Ave N. 3.Once completed, review façade design concept with city staff and receive staff approval to move into construction plans. 4.Once approved, Wilkus Architects, or other architect of your selection, will prepare final design and construction plans of the approved project. These final plans will then be used to submit to the City for final approval and building permits. The property owner will cover the cost of final design and preparation of construction documents – this can be included in the total project cost. 5.The funds from the agreed upon grant amount will be put into an escrow account, along with property owner’s 50% match, to be drawn down during construction. Any fees associated with the Escrow account will be split evenly between the City and property owner. The proportion to be paid by the City will be deducted from the grant funds. Construction will then commence once any necessary permits are issued. The City Council is being asked to approve the program guidelines and a blank Design Assistance and Façade Improvement Grant application. Staff will then open up the application process for all eligible property owners and select the most qualified projects based on the goals of the project. Alternatives The Council has the following alternatives:  Approve and adopt the Design Assistance and Façade Improvement Grant Program  Approve the Design Assistance and Façade Improvement Grant Program with revisions  Deny and opt not to move forward with the Design Assistance and Façade Improvement Grant Program 07/21/2015 Design Assistance and Façade Improvement Grant Program Guidelines PURPOSE The City of Hopkins, in partnership with Hennepin County, is offering a onetime grant opportunity for façade improvements. The purpose of this program is to provide technical and financial assistance to property owners within the core of Downtown Hopkins in order to upgrade and improve the facades and appearance of commercial/retail buildings. The goal of this program is to strengthen the vitality of Mainstreet by improving the pedestrian experience, increasing building transparency, and beautifying buildings through façade revitalization efforts, which will have a lasting impact on downtown Hopkins and strengthen the ridership of the Southwest Light Rail. GRANT INFORMATION Property owners, or business owners with the approval of their property owner, may apply for grant assistance of up to 50% of the cost of improvements. Grants shall be no less than $5,000 and no greater than $30,000. The Design Assistance and Façade Improvement Grant will be structured as a 10-year loan with no payments, with 10% of the loan being forgiven for 10 years. If the building is sold before 10 years, the balance on the loan must be repaid by the property owner. ELIGIBILITY ththst Buildings located in Downtown Hopkins between 7 Ave and 11 Ave and between 1 St. N st and 1 St. S (see attached map) are eligible to apply, assuming property has no delinquent bills, charges, or taxes due to the City. All improvements must result in permanent, external building improvements that add to the goals listed above. Due to the limited amount of funds, all applications are subject to a competitive selection process which will be based on project goals, impact, readiness of the project, and the ability of the property owner to provide a local match. All applications and plans are subject to the review and approval of the City. Submitting an application and plans does not guarantee approval. Eligible Applicants  The applicant must be the property owner or a tenant with permission from the property owner to make façade improvements  There must be no delinquent bills, charges, or taxes due to the City  Projects must be located in the designated area of eligibility  All projects must result in permanent, external building improvements  Property must have conforming uses  All façade improvements must follow the principles and guidelines of the Hopkins Building Code, Hopkins Zoning Code, and the Façade Improvement Program’s Design Guidelines 07/21/2015 Eligible Improvements, including but not limited to:  Exterior painting or re-siding  Restoration of exterior finishes and materials  Masonry repairs and tuck pointing  Removal of architecturally inappropriate or incompatible exterior finishes and materials  Restoration of architectural details or removal of materials that cover architectural details  Repair, replacement, or installment of windows and doors (replacements must be architecturally appropriate)  Window and cornice flashing and repair  Canopy or awning installation or repair  Murals  Installation or repair of exterior signage  Removal of barriers to access the building from outside for people with disabilities – ADA accessible  Exterior lighting  Window, wall, and hanging signs advertising the business name and identity Ineligible Improvements, including but not limited to:  Any improvements not listed in eligible improvements  Improvements in progress or completed prior to preliminary approval  Routine maintenance that is not part of an eligible façade improvement project  Billboards  Roofing  Mechanicals and HVAC systems  Interior work  New construction  Pylon, temporary, or roof signs  Interior window displays  Security systems (including metal roll down gates, window bars, cameras)  Trash and mechanical enclosures  Fencing  Landscaping  Improvements regarding parking areas  Purchase of property GRANT TERMS AND CONDITIONS Property owners, or business owners with the approval of their property owner, may apply for grant assistance of up to 50% of the cost of improvements. Grants shall be no less than $5,000 and no greater than $30,000. The Design Assistance and Façade Improvement Grant will be structured as a 10-year loan with no payments, with 10% of the loan being forgiven for 10 07/21/2015 years. If the building is sold before 10 years, the balance on the loan must be repaid by the property owner. The final design is subject to the review and approval of the City of Hopkins and the City of Hopkins reserves the right to require all property owners to comply with city ordinances. The City of Hopkins has the right to terminate any agreement under the Façade Improvement Program if a participant is found to be in violation of any conditions set forth in these guidelines. In addition, the following requirements apply:  All work must be done in accordance with all local, state, and federal building codes, Hopkins’ Zoning Code, and the rules and regulations for the Design Assistance and Façade Improvement Program  Labor costs are only eligible to be covered by the grant if the labor is done by a third party who has no financial interest in the building (i.e. the building owner may not receive funds for labor that he/she completed on the project)  All construction must be made in strict compliance with any approval plans and applicable local, state and federal rules and regulations DESIGN GUIDELINES Eligible proposals/applications will be required to follow the design standards set forth by the City Zoning Code, follow program guidelines and are suggested to follow the Design Guidelines. These guidelines are provided to assure appropriateness of the proposed work, and to provide for compatibility with the affected buildings original appearance and with other surrounding buildings. All properties eligible for this grant are located in the Downtown Overlay District which was set in place to meet the following goals:  Preserve the small-town, unique character of Mainstreet Hopkins  Complement the existing historic architecture  Enhance the pedestrian orientation of downtown Hopkins and encourage streetscape design that is inviting and on a human scale  Communicate the community’s vision for Mainstreet area All information regarding the City’s design standards and guidelines for this district can be found at: http://www.hopkinsmn.com/development/downtown.php GENERAL MAINTENANCE REQUIREMENTS  Painting of trim may be required if peeling, fading, and/or flaking conditions exist  Staining of wood surfaces may be required if fading  Tuck pointing may be required if loose mortar or brick exists  Stucco repair may be required if cracked, falling, or discolored conditions exist  Awning replacement or removal may be required if faded, torn or otherwise in disrepair 07/21/2015  Windows should be in good repair, caulked and sealed as necessary st APPLYING FOR THE GRANT – Deadline August 21, 2015 at noon Submit a completed application for eligibility and description of the façade improvements that you are interested in having funded by the grant. Include your timeline and commitment to the 50% match. In the application, address how your project will meet the goals of the program. APPLICATION REVIEW City staff will review grant applications and evaluate them based on the following criteria:  Impact to the vitality of Mainstreet (15 points)  Readiness – What is your timeline? (5 points)  Ability to provide matching funds (10 points) GRANT PROCESS 1.Complete grant application and submit all require materials to the City of Hopkins Planning and Economic Development staff 2.If project is selected, meet with City staff and Wilkus Architects to develop preliminary plans and project budget for your façade improvements. The City of Hopkins will pay for the preparation of façade concept plans through a cooperative relationship with Wilkus th Architects, who are located in Hopkins at 15 9 Ave N. 3.Once completed, review façade design concept with city staff and if staff approves then move into construction plans. 4.Once approved, Wilkus Architects, or other architect of your selection, will prepare final design and construction plans of the approved project. These final plans will then be used to submit to the City for final review and approval and building permits. The property owner will cover the cost of final design and preparation of construction documents – this can be included in the total project cost. 5.The City will require a promissory note and mortgage to be recorded against the property. The City will cover any cost associated with filing and title work The funds from the agreed upon grant amount will be put into an escrow account, along with property owner’s 50% match, to be drawn down during construction. Any fees associated with the Escrow account will be split evenly between the City and property owner. The proportion to be paid by the City will be deducted from the grant funds. Construction will then commence once any necessary permits are issued. Design Assistance and Façade Improvement Grant Program Application APPLICANT INFORMATION I.Name of business Requesting Grant Hopkins Address Phone II.Name of Person Completing Application Address Title Phone (home) Phone (business) III.Downtown Building Owner (If different than applicant) Address Phone NOTE: A letter of support for the proposed project from the building owner must accompany the application. IV.If applicant is leasing the building, indicate expiration date of current lease agreement Home Address Phone Email Address V.Describe the nature of the businesses in the building, including types of products and/or services to be offered (or retained): VI.Is this building under orders from any public agency to make corrections to meet code? Yes _____ No _____ If yes, please specify: PROPOSED PROJECT DESCRIPTION Please write a description of your proposed project, detailing the improvements you would like to undertake. Projects will be assessed with the following criteria: Impact to the vitality of Mainstreet (15 points) o Readiness – What is your timeline? (5 points) o Ability to provide matching funds (10 points) o BUILDING INSPECTION Building owner grants permission for the city inspector to inspect all work to be performed as part of this Façade Improvement Program. __________________________________________________ _____________________ Signature of Building Owner Date APPLICATION MATERIALS Please submit the following materials to the City of Hopkins Planning and Economic Development Department: Completed application □ Proposed project description □ Proposed timeline for project completion □ A completed Scope of Work (attached), which will also be used as the project’s bidding □ document Estimated budget for façade improvements and evidence supporting your ability to □ cover 50% of project costs (i.e. funding commitment from bank or lender, or proof of sufficient personal funds) Letter of support from building owner and Owner Agreement (attached), if applicant is □ not the building owner Photo of current facade □ I hereby affirm that all information above is true and accurate to the best of my knowledge. I have read and agree to agree to Grant Rules and Regulations. Signature Date FOR OFFICE USE ONLY 1.Application received 2.Application reviewed for eligibility 3.Initial inspection by City’s inspectors and structural engineer 4.Initial scope of work drawn up 5.Initial scope reviewed by owner 6.Final scope formulated 7.Final scope out for bids 8.Bids received 9.Grant contract signed 10.Work begins Total grant amount: