VII.4. Commercial Façade Loan Program; Elverum
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kersten Elverum, Director of Planning & Development
Date: May 16, 2023
Subject: Commercial Façade Loan Program
_____________________________________________________________________
PURPOSE
Staff will provide an overview of the Commercial Façade Loan Program at the May 16,
2023, City Council meeting.
INFORMATION
Background
The commercial Façade Loan Program was established in 2015. The purpose of the
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. The
program provides property and business owners with technical and financial assistance
(up to $25,000) to help improve commercial building facades.
The Façade Improvement Program loans are structured as a 10-year loan with no
payments, with 10% of the original loan amount being forgiven each year for 10 years.
If the building is sold before 10 years, the balance of the loan must be repaid by the
property owner.
It has been offered approximately every other year, in 2015, 2017, 2019 and 2022. To
date the City has participated in 16 improvement projects that have had a significant
impact on downtown Hopkins. Attached is a table showing all past projects.
The following is the criteria that applications are reviewed against:
• Impact to the vitality of downtown Hopkins (15 points)
- Project is pedestrian oriented and enhances the pedestrian experience by
providing a design that is inviting and on a human scale
- Project increases pedestrian traffic and activity
- Project helps preserve the small-town, unique character of downtown
Planning & Development
• Impact to the aesthetic character of downtown Hopkins (15 points)
- Project preserves and enhances or complements the historically significant
architecture of downtown
- Project increases the curb appeal of the property
- Project creates visual significance by improving highly visual elements of the
building
• Economic impact (5 points)
- Extent to which the project leverages private investment in the building
• Readiness (5 points)
- Applicant has required matching funds and can start the project in a timely
manner
Projects must score a minimum of 25 points to move forward in the selection process.
Projects will be selected based on their point ranking and the availability of funding.
2022 Funding
Last fall, the City offered the program again after taking a 3-year break due to the
impacts of Covid on businesses. There were 10 applications received and 6 were
funded. The applications were scored by members of a committee. As mentioned,
under current program guidelines, projects scoring less than 25 points are ineligible for
funding. The remaining projects were evaluated and several of the awards decreased
in order to stay within the $100,000 budget. The 2022/2023 projects are in various
stages of development.
At the May 16, 2023, City Council meeting, staff will provide more detail about the
program, this year’s awards and ask for feedback on how to improve the program.
FUTURE ACTION
There is no action on this item but City Council direction may require future action.
2015 Summary Business/Property Owner Address Requested Funds Awarded Funds Total Project Cost
Applications received 14 Olson Block Building 906 Mainstreet 30,000.00$ 19,000.00$ 90,000.00$
Applications Selected 4 LTD and Family Resource Center 715 Mainstreet 30,000.00$ 30,000.00$ 60,000.00$
Total Funds Requested 290,000.00$ Jack Yee Restaurant 1016 Mainstreet 30,000.00$ 25,000.00$ 75,000.00$
Total City Match Amount 94,000.00$ Mainstreet Bar & Grill 814 Mainstreet 12,954.00$ 15,000.00$ 32,000.00$
Leveraged Funds 163,000.00$ 257,000.00$
Leveraged/City Match 173%
2017 Summary Business/Property Owner Address Requested Funds Awarded Funds Total Project Cost
Applications received 9 Hopkins Center Drug 913 Hopkins Center 25,000.00$ 25,000.00$ 87,487.00$
Applications Selected 3 Hopkins Carpet One 907 Hopkins Center 25,000.00$ 25,000.00$ 87,487.00$
Total Funds Requested 147,885.33$ Hopkins Professional Clinic 29 9th Ave N 25,000.00$ 25,000.00$ 75,000.00$
Total City Match Amount 75,000.00$ 249,974.00$
Leveraged Funds 174,974.00$
Leveraged/City Match 233%
2019 Summary Business/Property Owner Address Requested Funds Awarded Funds Total Project Cost
Applications received 9 Kiddywampus 1023 Mainstreet 25,000.00$ 25,000.00$ 63,830.00$
Applications Selected 3 Wild Board 1022 Mainstreet 25,000.00$ 25,000.00$ 89,843.94$
Total Funds Requested 230,000.00$ Hopkins Dance Company etc.821-823 Mainstreet 25,000.00$ 25,000.00$ 51,383.73$
Total City Match Amount 75,000.00$ 205,057.67$
Leveraged Funds 130,057.67$
Leveraged/City Match 173%
2022 Summary Business/Property Owner Address Requested Funds Awarded Funds Total Project Cost
Applications received 10 Open Circle 34 10th Ave S $ 9,217.13 9,000.00$ 18,434.25$
Applications Selected 6 Total Wealth Advisors 809 Mainstreet $ 21,042.91 20,000.00$ 42,085.82$
Total Funds Requested 169,412.68$ PACT Institute 1014 Mainstreet $ 25,000.00 25,000.00$ 100,000.00$
Total City Match Amount 100,000.00$ English Rose 1200-1208 Mainstreet 25000 25,000.00$ 50,000.00$
Leveraged Funds 154,185.97$ Olson Block Building 906 Mainstreet 9,550.00$ 9,000.00$ 19,100.00$
Leveraged/City Match 154%Munkabeans 1206 Mainstreet 12282.95 12,000.00$ 24,565.90$
254,185.97$