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Memo Sign Grant ProgramII. OVERVIEW PS02296A February 29, 1996 CITY OF HOPKINS MEMORANDUM DATE: TO: Honorable Mayor and City Council FROM: Paul T. Steinman, Community Development Specialist SUBJECT: Sign Grant Program I. PURPOSE OF MEMO The purpose of this memo is to provide an update on staff's research and discussions regarding possible changes to the Sign Grant Program. In February 1996 the Council briefly discussed this issue specifically with regard to changing the boundaries of the Sign Grant Program. Staff indicated at that time it would research this matter, review it with the HBCA, and then bring it back to the City Council. Since this meeting, the Program has been discussed at both the staff level and with HBCA. HBCA has stated they wish to discuss various aspects of the Program in more detail before making a recommendation. Staff is suggesting that the general effectiveness of the overall program should be discussed in conjunction with changing the boundaries of the program. III. PRIMARY ISSUES TO CONSIDER • Has this program been effective? The current guidelines of the program basically allow any type of sign that meets the zoning code size requirements to be approved for a sign grant. This broad guideline has led to the funding of signage which potentially has not met the initial goals of the program. The initial goals of the program were to provide funding for signage which maintained and protected the historic nature of the downtown area. To accomplish this, very specific design criteria for signage was in place; however, the eligibility guidelines were broadened later on so that more sign grants could be undertaken. Memo to Mayor and City Council, February 29, 1996 - Page 2 Staff has discussed over the past several years the possibility of implementing stricter guidelines for this program. These strict guidelines may be as simple as eliminating plastic or back -lit signage from eligibility. In staff's research, it has been apparent that the program may be providing little upgrading of signage over and above what would likely have been undertaken without the grant program. PS02296A • Should the boundaries of the Program be changed? Staff's comfort level with expanding the program boundaries greatly increases if certain changes were made to the Program eligibility guidelines to ensure that a real benefit was being provided to the public through this program. In researching the issue of boundary expansion, staff has been working under the assumption that any significant annual increase in the budget for this program may be unlikely. This being the situation, if the program . boundaries were expanded without implementing stricter guidelines, the budget for this program would likely be depleted in the early months of each year, with little or no significant visual impact. • What was the response from the HBCA Economic Development Committee? Staff discussed this issue with the HBCA -EDC on February 23, 1996. There appeared to be general support for implementing stricter eligibility requirements for this program, and then potentially expanding the boundaries of the program. The EDC was also very supportive of maintaining the program in some form. It was their general feeling that the Sign Grant Program, although it may not at times provide a significant visual impact, still does provide a benefit to the small business owners. It was also suggested that this program is a significant public relations advantage for the City of Hopkins as compared to other communities. Other discussion by the EDC referred to future meetings whereby they volunteered to conduct a further review of staff recommendations for stricter eligibility requirements for this Program. A possible schedule for accomplishing this would be as follows: March 7 EDC reviews issues with HBCA Board of Directors Memo to Mayor and City Council, February 29, 1996 - Page 3 PS02296A March 14 Board of Directors reviews issues with HBCA general membership EDC reviews staff proposals for stricter guidelines and makes a recommendation to HBCA Board of Directors March 22 April May 7 V. ATTACHMENTS HBCA Board of Directors discusses this issue, and then presents to HBCA general membership City Council takes final action on changes and modifications to the program, upon consideration of HBCA comments /position IV. CONCLUSION In conclusion, staff feels that in conjunction with . completing any changes in the eligibility requirements for the Sign Grant Program, it is probably logical to also look at the overall program and its effectiveness to date. Staff also feels that it is important for the HBCA general membership to provide its response to proposed recommended changes to this program. Minutes of February 23, 1996, HBCA Economic Development Committee meeting 1 .5re+) 6-RA1 r Present: Nelson Berg, Dale Poste, Mark Senn, Paul Steinman, Doug McDonald, Elly Barth, Katherine Schipper, Eileen Harvala (City of Hopkins) Staff: Cynthia Sweet Nelson Berg called the meeting to order at 7:40 a.m. Berg rccapped the C/I program. Overall sentiment was that the program was well done and beneficial. The C/I program sparked ideas of possible programs regarding other issues, Steinman suggested a possible tenants point of view for future programs. Sweet presented the C/I survey results. They were as follows: 8 completed surveys / 300 (approximately) 2 negative responses that wanted no involvement 6 favorable responses that would be involved HBCA recognized this attempt as unsuccessful, but decided not to let this issue drop. Ideas to better this process will be discussed in the future. Senn had no news to report about the Hopkins Spring Thing to be held March 2" and 3 Questions and organizational details have been referred to Kathleen Taber the independent contractor for this event. PROS FOR SION GRANT promote "quality /character good will perceived upgrades signs jump start improvements ie: Cty. Rd. 3 incentive to locate / expand in Hopkins GM Ulf Hopkins Business & Civic Association Economic Development Committee February 23, 1996 Steinman presented the Sign Grant program to HBCA and asked for ideas and comments regarding the current program and possible future direction of that program. The HBCA took no formal action on the Sign Grant program other than to wait until actual issupsaals s are given to HBCA to discuss. Steinman will bring salsto the next meeting. The discussion that is still on the table is as follows: CONS AGAINST SIGN GRANT budget no current standards signs would go up without grant fairness of limited area? landlord vs. tenant bad P.R. if cutback OPTIONS • Maybe don't cancel sign grant program, just fine tune the regulations and expand to whole city. (with idea that stiffer regulations stretches the money further) • Expand areas • Target Co. Rd. 3 (2 -3 year project) possibly even Shady Oak? � R$4T • Combine with Facade Program • Tighten Guidelines Notes: • No tax increment dollars can be used for grant programs. • Sign Grant is spending approximately $7,000.O0/year currently with a $5,000.00/ycar ? budget that is already exceeding maximum limits. Harvala presented the 1995, 1996 City of Hopkins "report card ". The report card will be presented in the HBCA Newsletter. Hopkins Highlights, City Annual Report, Sun Sailor ? ?, and possibly MN Real Estate Journal. Included in the report will be a "Mini- tours" on Paper, photos, quotes, economic strategic plan, and letters of acknowledgment. Schipper volunteered to assist Harvala with the project. The 1995, 1996 Development Report Card goes as follows: 1995 Development Wendy's (Tim H.) Lomrnen Maetzold Field E Main St Smith Relocation Hitching Post Abes (Facade) Best Steak (Facade) Hopkins Auto Body (94 ?) Dale Feste Mirror & Glass Bakery 1996 Develonntent ground breaking for theater 3/28/96 RL Johnson Co. Rd. 3 project (Phase I) Pines Pines Art Center Diamond Labs Boston Gardens Tails Town & Country Dodge Justus Rental Center Hennepin Cty. Site Note: No representatives from the East side of town were available for any additional development reports. Steinman repotted a brief City of Hopkins update. The Arts Facility will have informational meetings both Tuesday, February 27th at 7:00 p.m., at Hopkins City Hall and Sunday, March 3c at 3 p.m. at Hopkins Spring Thing. A preliminary development agreement with Real Estate Equities for redevelopment of the Pines has been signed. Over the next five months, research and surveys will be happening prior to the signing of an actual development agreement. This project is estimated to be about 7.5 to 8 million dollars. The Hennepin County option was also briefly discussed. The option date will expire July I The council will meet with five potential developers on March 6' The Diamond Labs project is scheduled for permit approval on March 19. The development report card for Hopkins was expanded by Steinman to include the following: 1995 Building Permit Property Valuation $681,000 New Building Commercial $2.2 million Commercial Additions $666,000 Industrial Additions $552,000 New Residential $1.6 million Remodeled Residential $81 million Additions to Residential Projected 1996 Prooertv Valuation If plans and permits go as indicated, the 1996 figures should be approximately three times the 1995 figures. There being no other business, the meeting was adjourned by Berg at 9:15 a.m.