CR 94-43 Commercial Rehabilitation Loan Program
1 y 0
\
V "
- ~
March 9, 1994 Council Report 94-43
e .y <.:>
o P K \ 1'<
COMMERCIAL REHABILITATION LOAN PROGRAM
MODIFICATIONS
Proposed Action
Staff recommends adoption of the following motion: "Move to concur with
the HRA action as detailed in HRA Resolution No. 314 approving
modifications to the City's Commercial Rehabilitation Loan Program, and
also approving guidelines for a Facade Grant Program."
Overview
Staff has proposed modifying the Commercial Rehab. Loan Program in order
to increase program usage. The proposed changes should provide a greater
incentive to property owners to upgrade the appearance of their
buildings.
A few of the major modifications proposed at this time include allowing
for staff approval of loans under $25,000, providing for a facade grant
4It in the amount of up to $5,000, and utilizing a floating interest rate of
3% below prime.
This item is anticipated to be discussed in length at the HFA meeting.
Information regarding the proposed changes is detailed in HFA Report
94-13 and HRA Resolution No. 314.
Supporting Infor.mation
0 BRA Resolution 314
Steinman -
Paul T.
Community Development Specialist
--- .---
, .
HOUSING AND REDEVELOPMENT AUTHORITY
. IN AND FOR THE CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 314
RESOLUTION AUTHORIZING MODIFICATIONS TO THE
COM1\.1ERCIAL REHABILITATION LOAN PROGRAM
WHEREAS, an Ordinance No. 82-511 authorizes the Hopkins Housing and Redevelopment Authority and City
Council to establish and maintain a Commercial Rehabilitation Loan Program to preserve small
and medium sized buildings in Hopkins pursuant to M.S.A. Chapter 459, and
WHEREAS, Ordinance No. 82-511 establishes that the health, safety, and general welfare and the preservation
of the quality of life of the residents of the City of Hopkins are dependent upon such small and
medium sized commercial buildings, and
WHEREAS, the City Council or Housing and Redevelopment Authority has been granted the power and
authority to adopt from time to time various program regulations in connection with the
provisions of Ordinance No. 82-511 which regulations shall include loan eligibility and loan
. priority criteria, loan amount limitations, and any other provisions and regulations which may be
necessary or desirable, and
WHEREAS, the City of Hopkins has also adopted a Tax Increment Plan on November 7, 1989 entitled
Reorganization and Modification of Redevelopment Project & Tax Increment Financing Districts,
and such plan identifies expenditures of tax increment funds from Tax Increment Districts 1-1 &
2-1 for providing Commercial Rehabilitation Loans, and
WHEREAS, pursuant to Minnesota Statutes, section 469.012, subd. 1(12), the Housing and Redevelopment
Authority has the power to carry Qut a program of voluntary repair and rehabilitation of buildings
and improvements and to develop, test and report methods and teclmiques to and carry out
activities for the prevention and elimination of slums and blight, and
WHEREAS, the City of Hopkins has established a Development Account to assist in providing a source of
funding to be used to foster and promote various types of redevelopment activities, and
WHEREAS, the Housing and Redevelopment Authority has determined at this time that certain modifications
to the Commercial Rehabilitation Loan Program are deemed necessary in order to continue to
effectively facilitate the preservation of small and medium sized buildings, and
WHEREAS, the Housing and Redevelopment Authority has determined that a program under which matching
grants would be available to owners of small and medium sized commercial buildings to improve
e facades on their buildings, would serve the objective of upgrading the commercial building stock
in the City and preventing the deterioration of such buildings.
- ~
NOW THEREFORE BE IT RESOLVED, by the Housing and Redevelopment Authority of the City of Hopkins
as follows:
. 1. Modifications be made to the Commercial Rehabilitation Loan as detailed in lIRA Report
94-13 .
2. A "Facade Grant" program be established as detailed in HRA Report 94-13, and to be
funded through the HRNCity Development Account.
ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF HOPKINS,
MINNESOTA, this 15th day of March, 1994.
Charles D. Redepenning, Chairman
Robert G. Anderson, Secretary
e
-