Item Coversheet

4.B.


Shakopee Economic Development Authority
August 15, 2017


FROM: Michael Kerski, Planning & Development Director 
TO:EDA Commissioners
Subject:
Façade loan in the amount of $35,000 for the rehabilitation of the façade at 126 Holmes Street S
Policy/Action Requested:
Vote on awarding a Façade Loan in the amount of $35,000 for the rehabilitation of 126 Holmes Street S.
Recommendation:
Approval of a Façade Loan to Ollie LLC (Mary Isakson) as outlined in the application including restoration of the storefront to the Heinen Soda Shop façade from the 1920s using the Downtown Design Guidelines. The total loan amount shall be fifty percent match of the total construction costs and loan amount shall not exceed $35,000. Staff is authorized to execute the appropriate loan documents for a 7 year loan schedule.
Discussion:

City Council adopted a new façade improvement policy.  The policy limits loans to eligible properties to $30,000 unless the EDA feels that the project has a large impact.  The building is very historic and has been blighted for some time. 

 

The Applicants are proposing to restore the first floor as close as possible to the original design using the Downtown Design Guidelines and using a 1920s photo of the building when it was the Heinen Soda Shop.   

 

The proposed changes will positively enhance the pedestrian experience at the street level and will also rehabilitate a historic building closer to its original appearance.  Total projected project costs are $70,000.

 

The building is adjacent to Babe's that was restored a number of years ago.  This rehabilitation will remove some unfortunate additions to the storefront and we will now have two restored buildings adjacent to each other and will have a positive impact to this side of Holmes Street.

Budget Impact:
The City currently has $240,000 in the Façade Improvement Program.  If the Commissioners approved 120 First Avenue, the balance is now $187,250.  After this loan, the balance will be $152,250.
ATTACHMENTS:
Description
Application