CR 96-127 Sign Rehabilitation Grant ProgramAugust 6, 1996
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41 c%14 Anderson, AICP
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Planner
Council Report 96-127
SIntBILITATION GRANT PROGRAM MODIFICATIQM,
Staff recommends approval of the following motion: Move thp modific
as indicated within this report.
llgtit approval of this action, staff will proceed to put together a new Sign Grant brochure and
publicize the expartded area of the program through the use of various City communication tools.
Overview_
Approximately six months ago, a local resident requested that modifications be made to the City
Sign Grant Pi OgialT1 This suggestion was to expand the Sign Grant Program boundaties to
include other areas of the City
• Staff has within the past srx months Pact several discussions with the HBCA Economic
it Development Committee and MCA general membership/Board of Directors, regarding these
Sign Grant Modification issues
In July the Council discussed this matter at a work session
Primary Issues to Consider
o What are the major changes being proposed?
o What was HBCA's position on the proposed changes?
o What is currently budgeted and used on an annual basis for Sign Grants?
• What additional changes have been made to the guidelines, based on City Council input?
o Sign Rehabilitation Grant Program Guidelines and Procedures/Redevelopment project
area map--Exhibit A
o Positionstatementby
o Pictures of eligible.rmeligible signstinder these new guidelines
Promissory note
•
To: Zoning and Planning Commission
From: Nancy Anderson
Date: Monday, September 30, 1996
Subject: Sign Grant Program
Attached the staff report that was on the agenda when the sign grant program was
continued. Staff has made the changes in the program that were recommended by the
City Council at the work session before the item was continued to this work session.
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Council Report 96 -127 - Page 2
Primary Issues to Consider
o What are the major changes being proposed?
The following three major changes are being proposed to the Sign Grant Program at this
time:
o Provide funding totaling 25 percent, rather than 50 percent, of the total cost of signage
improvements. Staff and HBCA Economic Development Committee discussed that by
reducing the percentage of grant, more businesses would be able to receive the benefit
of this program.
o Change the boundaries of the program from its current area of generally First Street
North to First Street South between Shady Oak Road and Washington Avenue - -to the
area identified as the "redevelopment project area," as identified in Exhibit A, attached
to this report. A building applying for a signage improvement grant must also be
located within any of the business or industrial zoning classifications. The City's
redevelopment attorney- -Bob Deike -- indicated that the boundaries of the
redevelopment project area would be the limits of where the City could provide Sign
Grants. This relates to the funding mechanism for the program being tax increment
financing, and the regulations regarding the use of that tool to provide signage
improvement grants.
o The following would be ineligible improvements under the revised sign grant program
- Plastic/Lexan panel or vacuum- formed signage (or any derivative of these types of
products) with the exception of plastic - lettered signs where each letter is individually
placed on the building
Staff is recommending that these types of signs, as listed above, be ineligible under the
new program In support of this, staff would provide a package of alternative signage
that could be provided to a perspective applicant, which would be eligible for a Sign
Grant This package would not include any of the ineligible signage as indicated above,
but rather provide a number of alternative types of signage.
o What was HBCA's position on the proposed changes?
HBCA supported the first two primary changes, which were the percentage of
participation by the City and the boundaries of the program HBCA did not support
making the following signs ineligible for improvement grants:
O Pylon or pole signs (new construction)
o Plastic/Lexan panel or vacuum- formed signage (or any derivative of these types of
products)
SIGN REHABILITATION GRANT PROGRAM
GUIDELINES AND PROCEDURES
FOR THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF HOPKINS
Planning and Economic Development Department
1010 First Street South
Hopkins, Minnesota 55343
(612) 935 -8474
The purpose of this program is to provide grants for the repair
and replacement of old signage, in addition to the construction
of new signage, which will enhance a building's character and
improve the appearance of commercial/retail properties.
I. Grant Terms and Conditions: MAJOR MODIFICATION
a. The Housing and Redevelopment Authority (HRA) Grant
Program will provide funding totaling 25 percent of the
total cost of the following:
• Existing sign removal
• New sign construction /materials
• New sign installation
• Lighting and associated electrical costs
b. Grant maximum - -no grant shall exceed $1,000
c. Grant minimum- -there is no grant minimum
II. Eligibility Criteria: MAJOR MODIFICATION
a. Building /applicant eligibility
1. Building must be located within the "Redevelopment
Project Area," as identified in Exhibit A. Building
must be located`in a business or industrial zoning
classification.
2. The building must not be one that is identified by
the HRA /City for possible acquisition as part of a
pending or proposed redevelopment /construction
project.
3. The applicant's business must be a "conforming use"
under the City's existing zoning ordinance.
4. Signage improvements to the building must comply
with all applicable code, permit, and license
requirements.
5. An eligible applicant can either be the building
owner or business owner /tenant.
SIGN REHABILITATION GRANT PROGRAM - Page 2
6. Applicants are required to wait a minimum of five
years prior to submitting a second Sign
Rehabilitation Grant Program application.
b. Eligible costs
• Existing sign removal
• New sign construction /materials
• New sign installation
• Lighting and associated electrical work
Overall eligible projects shall include the following:
• New signage for rear entrances
• New conforming signage to replace legal,
nonconforming signs (grandfathered signs that violate
the existing zoning ordinance, but remain due to the
grandfathered clause)
• New tenants replacing existing signage
• Removal of signs no longer in use
• Repair and maintenance of existing signs (see
ineligible projects)
• Window signs that are an integral part of the
business name
• Awnings with business identification lettering and a
manufacture guarantee of 10 years
c. Ineligible improvements: MAJOR MODIFICATION
• Semi - permanent signs (signs made of cardboard,
particle board, canvas, or other temporary material)
• Window signs
• Posters and /or banners
• Awnings made of canvas
• Pylon or pole signs (new construction)
• Plastic /Lexan panel or vacuum - formed signage (or any
derivative of these products) w/ the exception of
plastic lettered signs where each letter is
individually placed on the building
• No franchise signs /or symbols
III. Inspection of the Sign
A final inspection will take place after the work on signage
improvements has been completed. This inspection will be
done to determine that the sign is identical to that which
was approved within the application process. The inspection
will also confirm that the sign meets all established zoning
ordinance and program guideline requirements.
SIGN REHABILITATION GRANT PROGRAM - Page 3
IV. payment of the Grant
411 No grant shall be considered by the City if a sign permit
has been issued prior to application. No work shall begin
until final approval has been granted by the City, and grant
moneys will not be available for signage that was
constructed prior to such approval.
V. Zoning Requirements
All signage shall meet the City Zoning Code.
VI. Sign Review
The applicant's proposals shall be reviewed by City staff
for compliance with the zoning ordinance. Staff will also
be reviewing the sign design, based upon the guidelines of
this Program, and may provide suggestions for modifications
to the applicant's sign in order to meet the intent and
purpose of such program.
City staff will complete its review of the applicant's
request for a Sign Grant within three days of submission,
and notify the applicant following that time period.
VII. Plans and Specifications
The following information is to be provided with the
application:
a. A front elevation drawing of the sign to scale. This
can generally be obtained from the sign company, an
architect, or a graphic arts company. The minimum
scale for such elevation is 1 inch = 1 foot.
b. A specification sheet describing sign materials,
precise letter size, and colors.
c. Signed bid from sign company.
d. Letter of acknowledgment from owner.
e. Letter from sign company warranting the sign for one
year.
VIII. Insurance
The applicant must provide the City with proof that the sign
is insured equal to the value of the sign under the
applicants general insurance or an insurance rider.
•
SIGN REHABILITATION GRANT PROGRAM - Page 4
IX. Repayment Agreement
The applicant must sign an agreement the would require
repayment upon the business cessation or departure from the
City at a pro -rated sum as follows:
At any time during the first 12 months 100%
At any time between the 13 -24 months 80%
At any time between the 25 -36 months 60%
At any time between the 37 -48 months 40%
At any time between the 49 -60 months 20%
After the end of the 60 full month from date hereof, note
deemed paid in full.
1
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SIGN REHABILITATION GRANT PROGRAM - Page 5
APPLICATION FOR SIGNAGE REHABILITATION GRANT PROGRAM
DATE:
Name: Phone:
Business Name:
Address:
Owner of Property:
New Signage: Rear Front
BUSINESS OWNER INFORMATION
TYPE OF IMPROVEMENT
Phone:
New signage to replace legal non - conforming signs:
Repair and maintenance of existing signs:
TOTAL AMOUNT OF BID:
SIGNATURE:
APPLICATION CHECKLIST
1. If tenant, letter of acknowledgment from owner.
2. Signed bid from sign company.
3. Front elevation drawing of the sign drawn to scale.
4. Drawing of the entire building indicating sign
proportion and placement.
5. Specification sheet describing sign materials and a
statement warranting the sign.
6. Proof of insurance.
TOTAL AMOUNT OF GRANT: $
25% OR $1,000 (lesser amount)
DATE:
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ASSOCIATION
Sign Grant Ordinance recommendation
per HBCA Board of Directors
After receiving information and recommendations from the Hopkins Business
and Civic Association's Economic Development Council the HBCA Board of
Directors passed the following motion on 6/20/1996:
Berg moved to accept the proposed staff sign grant rehabilitation program
draft with the exception of making pylon or pole signs (new construction) and
plastic/lexan (or any derivative of these products) panel or vacuum- formed
signage (as found under II. Eligibility Criteria; a. 2 c) ineligible and the HBCA
Board of Directors recommends that the City of Hopkins provide additional;
funding for the program in light of the expansion of the geographical area.
Motion seconded by Barth. Motion carried.
10550 Wayzata Boulevard Hopkins, Minnesota 55305 (612) 540 -0234
•
INELIGIBLE - Plastic panel sign
INELIGIBLE - . Vacuum- formed plastic sign
ELIGIBLE - Painted wooden sign
• . ..W.IGT1L,F,. — Plastic, individually lettered sj.glr,;
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CARPETING
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ELIGIBLE - Sandblasted sign
ELIGIBLE — Painted metal sign
c. EL Painted wooden gh
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undersigned
PROMISSORY NOTE AND CONDITIONAL GRANT
$ , 1996
, Minnesota
FOR VALUE RECEIVED in consideration by the City of Hopkins
providing the sum of $ for use in the purchase of
commercial permanent signage advertising an existing business, the
( "Borrower ") promises to pay to the
order of City of Hopkins ( "Holder ") the sum of $
or such lesser sums in the amount and upon the occurrence of the
following events:
a. Cessation or termination of business activity;
• b. Transfer, assignment or sale of the business;
c. Departure of the business from the City.
The amount due and owing the Holder in the event of such
occurrence shall be calculated as follows:
a. Within the initial 12 months thereof $ 100 %;
b. Within the 13th and 24th months inclusive thereof
$ 80 %;
c. Within the 25th and the 36th months inclusive thereof
$ 60 %;
d. Within the 37th and the 48th months inclusive thereof
$ 40 %;
e. Within the 49th and the 60th months inclusive thereof
$ 20 %;
f. After the 60th month $
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1
0 %.
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The payment due hereunder upon the occurrence of the specified
events shall be immediately due and payable to City of Hopkins,
1010 First Street South, Hopkins, Minnesota 55343 or at such other
location as the Holder of this Note may from time to time designate
in writing.
If suit is brought to collect this Note, the Holder thereof
may be entitled to collect all reasonable costs and expenses of
such including but not limited to reasonable attorney fees.
All parties hereto severally waive presentment for payment,
notice of dishonor, protest and notice of protest. This Note shall
be the joint and several obligation of all makers, sureties,
guarantors and endorsers and shall be binding upon them and their
successors and assigns.
The obligations due pursuant to the terms of this Note may not
be sold, assigned or transferred by maker without the express
written consent of the Holder which consent is the exclusive right
and obligation of the Holder to exercise.
c: \file \hopkins \note
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