IV.4. Amendment to Façade Improvement Program; Elverum
CITY OF HOPKINS
City Council Report 2023-096
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kersten Elverum, Director of Planning & Development
Date: September 19, 2023
Subject: Façade Improvement Program Amendment
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO waive the minimum point criteria for the 2022/2023 Façade Improvement
Program year and allocate an additional $20,000 in Program funds.
OVERVIEW
Since 2015, approximately every other year, the City of Hopkins has offered a deferred
loan program to help property owners make improvements to their downtown property.
Under the program guidelines, owners can receive up to $25,000 in matching funds
toward façade improvements.
Last fall, the City once again offered the program to the downtown property owners and
received ten applications. Working with a budget of $100,000, the review committee
ranked the projects against the program criteria, adjusted allocations to fit within the
budget and awarded funds to six projects. The remaining four projects did not meet the
minimum point threshold, a criterion of funding according to the program guidelines,
due to lower points for overall impact of the proposed improvements.
Two, and possibly three, of the selected projects are not moving forward and the façade
improvement funds have been declined. In order to utilize the remaining funds in the
program and based on previous discussions with City Council, staff is recommending
that the minimum point criteria be waived for this round of funding and up to an
additional $20,000 allocated to the program from the Economic Development Fund.
This will allow the remaining four projects to receive program funds.
If approved, staff will reach out to the four additional program applicants to offer the
matching funds to their projects, assuming all other program requirements can be met.
SUPPORTING INFORMATION
• Façade Improvement Guidelines
Planning & Development
Page | 1 September 2022
2022 City of Hopkins Façade Improvement Program Guidelines
PURPOSE
The City of Hopkins is offering a Facade Improvement Program for downtown businesses. The
purpose of this program is to provide technical and financial assistance to commercial property
and business owners within the core of Downtown Hopkins in order to upgrade and improve the
facades and appearance of commercial/retail buildings. The goal of this program is to strengthen
the vitality of Mainstreet by improving the pedestrian experience, increasing building
transparency, preserving historically significant architecture, and beautifying buildings through
façade revitalization efforts which will have a lasting impact on downtown Hopkins.
ELIGIBILITY
Businesses located on commercial properties in Downtown Hopkins between 7th Avenue and 13th
Avenue and between 1st Street North and 1st Street South (see map below) are eligible.
All improvements must result in permanent, external building improvements that add to the goals
listed in the section above.
Eligible Applicants/Projects
• The applicant must be the property owner or a commercial tenant with written permission
from the property owner to make façade improvements to commercial or retail buildings
• There must be no delinquent bills, charges, or taxes due to the City
• Projects must be located in the designated area of eligibility
• All projects must result in permanent, external building improvements
• Property must have conforming uses under the zoning code
• All façade improvements must follow the requirements of the Hopkins Building Code,
Hopkins Zoning Code, and the Façade Improvement Program
Page | 2 September 2022
Eligible Improvements:
• Exterior painting or re-siding
• Restoration of exterior finishes and materials
• Masonry repairs and tuck pointing
• Removal of architecturally inappropriate or incompatible exterior finishes and materials
• Restoration of architectural details or removal of materials that cover architectural details
• Repair, replacement, or installation of windows and doors (replacements must be
architecturally appropriate)
• Window and cornice flashing and repair
• Canopy or awning installation or repair
• Murals, subject to City approval of the design
• Installation or repair of exterior signage in conjunction with other eligible façade
improvements
• Removal of barriers to access the building from outside for people with disabilities
• Exterior lighting
Ineligible Improvements/Activities include any improvements not listed in eligible improvements
above, including, but not limited to, the following:
• Improvements in progress or completed prior to preliminary approval
• Routine maintenance that is not part of an eligible façade improvement project
• Signage only, without other eligible façade improvements
• Billboards
• Roofing
• Mechanicals and HVAC systems
• Interior work
• New construction
• Pylon, temporary, or roof signs
• Interior window displays
• Security systems (including metal roll down gates, window bars, cameras)
• Trash and mechanical enclosures
• Fencing
• Landscaping
• Improvements to parking areas
• Purchase of property
FORGIVABLE LOAN TERMS AND CONDITIONS
Commercial property owners, or business owners with the approval of the property owner, may
apply for financial assistance of up to 50% of the cost of improvements, with the remainder paid
by the applicant. Financial assistance awards shall be no less than $5,000 and no greater than
$25,000. The minimum cost of the improvements must be at least $10,000 ($5,000 forgivable loan
and $5,000 applicant match). There is no maximum limit on project cost, although the forgivable
loan is capped at $25,000.
Page | 3 September 2022
Example:
Scenario Total Project
Cost
Forgivable
Loan Amount
Applicant Pays
1 $10,000 $5,000 $5,000
2 $50,000 $25,000 $25,000
3 $65,000 $25,000 $40,000
The Façade Improvement Program will be structured as a 10-year loan with no payments, with
10% of the original loan amount being forgiven each year for 10 years. If the building is sold before
10 years, the balance of the loan must be repaid by the property owner.
The final design of improvements is subject to the review and approval of the City of Hopkins. The
City of Hopkins reserves the right to require all property owners to comply with city ordinances.
The City of Hopkins has the right to terminate any agreement under the Façade Improvement
Program if a participant is found to be in violation of any conditions set forth in these guidelines. In
addition, the following requirements apply:
• All work must be done in accordance with all local, state, and federal building codes,
Hopkins Zoning Code, and the rules and regulations for the Façade Improvement Program
• Labor costs are only eligible through the program if the labor is done by a third party who
has no financial interest in the building (i.e. the building owner may not receive funds for
labor that he/she completed on the project)
• All construction must be completed in strict compliance with approved plans and
applicable local, state, and federal rules and regulations.
• All work must be completed within 12 months from the date the forgivable loan is
approved by the City and any applicable agreements, as required by the City, are executed.
GENERAL MAINTENANCE REQUIREMENTS
Approved projects may be subject to general maintenance requirements as needed, including:
• Painting of trim may be required if peeling, fading, and/or flaking conditions exist
• Staining of wood surfaces may be required if fading
• Tuck pointing may be required if loose mortar or brick exists
• Stucco repair may be required if cracked, falling, or discolored conditions exist
• Awning replacement or removal may be required if faded, torn, or otherwise in disrepair
• Windows should be in good repair, caulked, and sealed as necessary
These activities may be included in the total project costs.
DESIGN ASSISTANCE
Applicants with projects selected for the Façade Improvement Program are strongly encouraged to
work with an architect to develop concept plans for the facade improvements. The City of Hopkins
will pay up to $2,000 for the preparation of façade concept plans if the applicant uses one of the
Page | 4 September 2022
Hopkins architectural firms listed on page 6. This funding is outside of the forgivable loan
maximum amount of $25,000. Therefore, projects may receive a maximum total amount of
$27,000.
APPLYING FOR THE PROGRAM – Deadline October 31 at 4:30 p.m.
The following documents are required to be submitted to apply for the Façade Improvement
Program:
1. Completed application form, including description of proposed improvements.
2. Proof of property ownership or lease.
3. Written consent from the property owner to make façade improvements if the applicant is
a commercial tenant.
4. Clear and color electronic photos of the existing building façade.
5. Other supporting documentation deemed necessary by the City of Hopkins.
All applications and plans are subject to the review and approval by the City. Submitting an
application and plans does not guarantee approval.
APPLICATION REVIEW
Due to the limited amount of funds for the Façade Improvement Program, all applications are
subject to a competitive selection process. City staff will review applications and evaluate them
based on the following criteria:
• Impact to the vitality of downtown Hopkins (15 points)
Project is pedestrian oriented and enhances the pedestrian experience by providing
a design that is inviting and on a human scale
Project increases pedestrian traffic and activity
Project helps preserve the small-town, unique character of downtown
• Impact to the aesthetic character of downtown Hopkins (15 points)
Project preserves and enhances or complements the historically significant
architecture of downtown
Project increases the curb appeal of the property
Project creates visual significance by improving highly visual elements of the
building
• Economic impact (5 points)
Extent to which the project leverages private investment in the building
• Readiness (5 points)
Applicant has required matching funds and can start the project in a timely manner
Projects must score a minimum of 25 points to move forward in the selection process. Projects will
be selected based on their point ranking and the availability of funding.
Page | 5 September 2022
PROCESS
1. Complete application and submit all required materials to the City of Hopkins Planning and
Economic Development staff by October 31, 2022 at 4:30 p.m.
2. If the project is selected, meet with City staff and a licensed design professional/architect
to develop preliminary plans and a project budget for your façade improvements. The City
of Hopkins will pay up to $2,000 for the preparation of façade concept plans if the
applicant uses one of the Hopkins architectural firms listed on page 6.
3. Once completed, review façade design concept with City staff and if staff approves then
move into construction plans.
4. Work with an architect of your choice to prepare final design and construction plans of the
project. These final plans will then be used to submit to the City for final review and
approval and building permits. Depending on the extent of the proposed improvements,
site plan approval may be required by the Hopkins Planning and Zoning Commission and
City Council. The property or business owner is responsible for the cost of final design and
preparation of construction documents. Fees for site plan review and building permits are
also the responsibility of the property or business owner.
5. Enter into a forgivable loan agreement with the City. The City will require a promissory
note and a mortgage that will be recorded against the property. The City will cover any
costs associated with filing and title work. The funds from the agreed upon forgivable loan
amount will be put into an escrow account, along with the property/business owner’s 50%
match, to be drawn down during construction. Any fees associated with the escrow
account will be paid by the City. Construction may commence once any necessary permits
are issued.
6. Payments from the escrow account will be made directly to vendors once the program
requirements are met and after submittal of invoices to the City. Alternatively, payments
may be reimbursed to the applicant after submittal of invoices and proof of payment.
Page | 6 September 2022
ARCHITECTURAL FIRMS IN HOPKINS
10K Architecture
525 15th Avenue South, #7826
Hopkins
952-594-3143
10karch.com
Brunton Architects
1040 6th Street South
Hopkins
507-386-7996
Bruntonarchitects.com
HTG Architects
1010 Mainstreet, Suite 100
Hopkins
952-278-8880
htg-architects.com
Wilkus Architects
15 9th Avenue North
Hopkins
952-941-8660
wilkusarch.com