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CR 96-109 Sign Rehabilitation Grant ProgramJune 25, 1996 Council Report 96 -109 SIGN REHABILITATION GRANT PROGRAM MODIFICATIONS Proposed Action Staff recommends approval of the following motion: Move to adopt modifications to the Sign Grant Program., as indicated within this report. With approval of this action, staff will proceed to put together a new Sign Grant brochure and publicize the expanded 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 Program. This suggestion was to expand the Sign Grant Program boundaries to include other areas of the City. Staff has within the past six months had several discussions with the HBCA Economic Development Committee and HBCA general membership/Board of Directors, regarding these Sign Grant Modification issues. At the last HBCA Board meeting, a position was taken on the proposed Sign Grant modifications. A detailed discussion of that position is included within this report. 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? Supporting Documents o Sign Rehabilitation Grant Program Guidelines and Procedures/Redevelopment project area map-- Exhibit A o Position statement by HBCA o Pictures of eligible/ineligible signs under these new guidelines James D. Kerrigan Planning & Economic Development Director Council Report 96 -109 - 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 modified sign grant program - Awnings - Pylon or pole signs (new construction) - 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) • Council Report 96 -109 - Page 3 o Plastic/Lexan panel or vacuum- formed signage (or any derivative of these types of products) HBCA felt that by eliminating these types of signs, the program would be too restrictive. They felt such a restrictive program would potentially have a negative perception rather than positive. o What is currently budgeted and used on an annual basis for Sign Grants? Currently, $5,000 is being budgeted on an annual basis for the Sign Grant Program. In recent years, approximately $5,000 to $7,000 in Sign Grants have been provided on an annual basis. HBCA is recommending that the City provide additional funding for the prow in light of the expansion of the g graphical area. Funding for the Sign Grant Program has come from economic development funds and, therefore, has been required to use the budgeted amount as a general "guideline" for dollars to be spent on a specific program The $5,000 budgeted annually has simply been a benchmark, the same as the $25,000 that is budgeted annually for the Facade Grant Program. If all types of signs are to be eligible under the modified program (including plastic), it may be necessary to increase the budgeted amount to approximately $7,500 to $10,000 per year, due to higher use of the program. Alternatives The City Council has the following alternatives regarding this matter: 1. Approve the action as recommended by staff, with the three major changes to the Sign Grant Program. 2. Approve alternative recommendation. 3. Continue the item for additional information. 4. Deny the action. 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 also be within the following zoning classifications: • B -1 • B -2 • B -3 • I -1 • I -2 2. The building must not be one which is identified by the HRA /City for possible acquisition as part of a pending or proposed redevelopment /construction project. 1 • SIGN REHABILITATION GRANT PROGRAM - Page 2 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. 6. Applicants are required to wait a minimum of five years prior to submitting a second Sign Rehabili- tation 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 c. Ineligible improvements: MAJOR MODIFICATION • semi - permanent signs • Window signs • Posters and /or banners • Awnings • 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 III. Inspection of the Sign • SIGN REHABILITATION GRANT PROGRAM - Page 3 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. IV. Payment of the Grant 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 monies 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 better 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. APPLICATION FOR SIGNAGE REHABILITATION GRANT PROGRAM DATE: Name: Phone: Business Name: Address: Owner of Property: TYPE OF IMPROVEMENT New Signage: Rear Front New signage to replace legal non - conforming signs: Repair and maintenance of existing signs: 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. TOTAL AMOUNT OF BID: $ TOTAL AMOUNT OF GRANT: $ 25% OR $1,000 (lesser amount) BUSINESS OWNER INFORMATION SIGN GRANT MODIFICATIONS Phone: SIGNATURE: DATE: x Wd swan .is a 1 EXHIBIT A a. I" 4 m gg v • 7 `B m to i3 I , I I I ° o an. CV 5 N CV a N m Ili a a 4J 3 ..? .+ a N 4 U, H 0 QC 0 Iii o m . on .j-) am � a.. 4,-, •0 W.az WAN al n"p aJ Ep 09 0 01 02 E E I &Ia Faro E mri wv CV .-. 00 I I I, I_ I, s .b eQ 00 co 00 04* 00 . o a . F .+ o-. o -. ..J o r- . o n al a0 ti Bp „ m , 8a W SG . °J , as 0 a 9 ' -M n os 4.:= 4, a5 4 ., 5 4. it - E-i1 Fc ° ai E—'x E-n 111 a frt 0 12 Jun -24 -96 08:OOA TwinWest Chamber HOPKINS USINESS CIVIC 612 540 -0237 ASSOCIATION Sign Grant Ordinance recommendation per HBCA Board of Directors After receiving information and reconunendations from the Hopkins Business and Civic Association's Economic Development Council the HBCA Board of Directors passed the following motion on 6/20/1996: Berg moved to accept the proposed staff sign grant rehabilitation program draft with the exception of making pylon or pole signs (new construction) and plastic/Lexan (or any derivative of these products) panel or vacuum- formed signage (as found under IL Eligibility Criteria; a. 2 c) ineligible and the HBCA Board of Directors recommends that the City of Hopkins provide additional; funding for the program in light of the expansion of the geographical area. Motion seconded by Barth. Motion carried. 10559 Wayzata Boulevard Hopkins, Minnesota 55305 (612) 540 -0234 P.02 • • INELIGIBLE - Plastic panel sign INELIGIBLE - Awn' INELIGIBLE - 'vacuum- formed plastic sign INELIGIBLE - Awning • ELIGIBLE - Painted wooden sign ILUNr CANL$o • ELIGIBLE - Sandblasted sign ELIGIBLE - Painted metal sign a Sb ELIGIBLE Painted wooden sign 94 . , tie.