Item 84-135 Loan Request Merriam ParkMEMO TO: Hopkins City Council
FROM: Kevin Locke, CCDC Director
DATE: October 11, 1984
SUBJECT: Review of Merriam Park Company Commercial Rehabilitation
Loan Application
GENERAL DESCRIPTION
1. The project involves interior and exterior improvements to the building
at 1001 through 1007 Excelsior Avenue West.
2. Improvements include construction of a courtyard area and renovation
of a garage into retail space among other things.
3. The total cost of the project is $91,000.00. A 15 year, 3% interest loan
of $45,500 is being sought.
4. The applicant, Merriam Park Company (Jerry Wasley and Robert Miller, a
partnership) are the owners of the buildings.
EVALUATION OF THE APPLICATION
A. Eligibility: The proposed work qualifies for financing under the Commercial
Rehab Loan Program regulations.
B. Financial Security: First Bank Hopkins has provided a letter of commitment
for the non -city financed portion of the project. First Bank
will lend $25,500.00 and Merriam Park Company will invest
$20,000.00 into the project.
C. Implementation of Public Policy:
1. Improvement of Building - Health and Safety Conditions:
- The buildings are in good condition. City inspectors
have inspected the buildings and found no major problems.
Some minor items have been identified and will be recti-
fied as part of the improvement.
- The 1001 Excelsior Ave. (Kokesh store) is under orders
from the Fire Marshal to install fire protection sprinkler
system in the basement of the building or remove all
combustible materials. Also, the rear interior wall
provides too little clearance between it and the electrical
service panel. Both of these problems will be corrected
as a result of this project.
2. Economic Development Generated:
- This project will enhance the overall image of the downtown
by improving the appearance and leaseability of a key pro-
perty downtown.
3. Consistency with Downtown Development Plans:
- The facade improvements are consistant with the downtown
design guidelines and have been reviewed by the Main Street
Design Committee.
•
PROPERTY VALUES
$160,000
94,000
25,000
$279,000
40,000
$319,000
BUILDING DEBT
$118,886.97 Existing on 1001 Excelsior Ave. W.
70,375.76 Existing on 1007 Excelsior Ave. W.
58,000.00 Renovation Loan Debt
$247,262.73 Total after'renovation
RENOVATION FINANCING
$91,000.00 Total cost
45,500.00
20,000.00
25,500.
MERRIAM PARK CO. LOAN DATA
1001 & 1007 Excelsior Ave. W.
Purchase price 1/84 (1001 Excelsior Ave.)
" 10/83 (1007 Excelsior Ave.)
Value of renovated garage (source: City Assessor)
Total current property value
Increased property value based on improvements
Total Value after renovation
15 year, 3% interest City Commercial Rehab Loan
Owner Cash
15 year, Hopkins First Bank Loan
PROJECT CASH FLOW
$5,128.04 Income (includes renovated garage) rents ($6 /s.f. 1st floor;
$3.5 /s.f. basement)(net rent basis; owner pays taxes; tenant
pays utilities)
4,663.00 Expenses
$ 465.04 Cash Flow
•
D. EXPECTED BENEFITS /RESULTS
1. Briefly explain how the proposed new business or expansion will improve
the "economic mix" and generally benefit Hopkins.
4;7
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e-X; et", Atowe s ( �`� f ,/ e).
2. Indicate the number of new jobs to be added to Hopkins:
a) Within six months of opening or expansion Lam-- /O
b) Within two to four years
3. Indicate the number of existing jobs to be retained in Hopkins as a
result of the loan and interest subsidy (if appropriate). 6 - /d
I hereby affirm that all information above is true and accurate to the
best of my knowledge. I have read and agree to abide by the Loan Regula-
tions.
Signature:
Date: /4
1. Application received
2.. Application reviewed for eligibility
3. Initial inspection by city's inspectors & structural
engineer C=7)(:6" j' I 0 ! 19?
4. Initial scope of work drawn up
5. Initial scope reviewed by owner
6. Final scope formulated
7. Final scope out for bids
8. Bids received
9. Loan contracts signed
10. Work begins
Amended Loan Amount
JOR OFFICE USE ONT,Y
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King E.. Christensen, Inc. vk rte:
Name : Bob Miller and Jerry Walev
Address: 1007 Pornel fi4 or Aienue
Job Address:
HoDkina , MN
general contractors
2000 aldrich ave. so.
m i nneapol i s, mn. 55 0 405
licensed bonded insured 874 -' 1829
Merrian Park_ Company Project
Date ,eptember 21. 1984
WORK AGREEMENT
Telephone: H 935 - 084
W 644 -51.62
644 -4726
1. All work will be done in a professional, workmanlike manner.
2. Any additional work will be handled with written change orders.
3. Rubbish removal of all work related debris will be handled by King &
Christensen, Inc.
4. The work to be done is detailed on the attached Work Specification
sheet for larger jobs.
Cost: $78,000.00 Payment schedule: set up
Estimated number of days to complete rough -in /prime
project . Set up date
Proposed completion date final
Final payment will be made immediately upon completion of work.
This contract is valid if accepted and signed by the Homeowner within
thirty days.
Lien waivers will be given to Homeowner upon completion of work and
payment in full.
Homeowner
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