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8.6 Downtown Facade Funding CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 2/27/2006 TIME 4:00 P.M. AGENDA SECTION NO: ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: 8 ITEM NO. Page 1 FINANCE AND ADMINISTRATION 6 BY: BY: Rod Franz ITEM: Consider request from Salina Downtown, Inc., for continued funding of the Exterior Façade grant. BACKGROUND: On October 11, 2004, the City Commission considered requests relating to proposed use of restricted sales tax funds for economic development initiatives. Salina Downtown, Inc. requested $10,000 per year for an exterior façade improvement matching grant program, with the provision that the program be reviewed annually for demand and results. The City Commission approved $10,000 per year for three years (2005, 2006, 2007). Attached, please find the Request for Commission Action, the request from SOl, the allocation of funding that was approved, and the guidelines for the program. SOl has now requested that this allocation be increased to $12,000 for 2006. This was incorporated in the budget submitted to the City Commission at the time the SOl rate structure was last amended, in November, 2005. However, a specific discussion addressing the requested change in funding was not initiated at that time. FISCAL NOTE: This will add an expense of $2,000 to the Economic Development portion of the special sales tax. Funding is available for this expense. RECOMMENDED ACTION: The City Commission has the opportunity to make several choices: 1. Affirm the original $10,000 per year commitment, and deny the request for additional funding. 2. Approve the request for an additional $2,000 for 2006, which will increase the total program from $10,000 to $12,000 for 2006, and leave the 2007 amount at $10,000 3. Approve the request for an additional $2,000 for both 2006 and 2007. 4. Take other action as the Commission may deem appropriate III DEPARTMENT OF FINANCE AND ADMINISTRATION Rodney Franz, Director 300 West Ash, PO. Box 736 Salina, Kansas 67402-0736 TELEPHONE (785) 309-5735 FAX (785) 309-5738 TOO (785) 309-5747 E-MAIL rod.franz@salina.org Website: www.salina-ks.gov Salina DATE: TO: February 27, 2006 FROM: RE: Jason Gage, City Manager Rod Franz, Director of Finance and Administration r SOl Façade Program Attached is information relating to the 2005 SOl Façade program. In 2005, four projects were funded for a total grant amount of $8,123.00, leaving a carryover of $1,877.00 to 2006. I would note that the Guidelines for the 2006 program have also changed slightly, primarily to clarify that to be eligible for a grant, the BID account must be in good standing. The composition of the review committee has also changed slightly. SOl Grant Award Market Shop/Homemade Happiness Caroll's Web Partridge in a Pear Tree Southwind Physical Therapy Total Awards 2005 Balance Remaining .... $10,000.00 $ 1,877.00 Grant Private Total Private/SOl Investment Renovation Ratio $ 1,900.00 $ 3,737.00 $ 5,637.00 $ $ 2,958.00 $ 4,692.00 $ 7,650.00 $ $ 2,800.00 $ 5,600.00 $ 8,400.00 $ $ 465.00 $ 465.00 $ $ 8,123.00 1.97 Complete 1.59 Complete 2.00 Pending Completion , , SALINA DOWNTOWN, INC. Board of Directors SDI Office, 114A S. 7th Street MINUTES JUNE 14,2005 Exterior facade erant award recommendations. The Business Support and Recruitment Committee's exterior façade grant award recommendations were approved. Recipients are: . The Market Shop & Homemade Happiness, 101 S. Santa Fe, 102 E. Iron, Arnold and Jan Sandquist, owners. $1900 grant to repair plaster and paint top half of building. Total project cost, $5637. (Project completed, grant awarded) . Carroll's corporate offices, Carroll's Web, 204 S. Santa Fe, 158 S. Santa Fe, Chuck Carroll owner. $2550 grant to demolish and dispose of old canopies and install new awnings. Total project cost, $7650. (See September 13 minutes below) . Partridge in a Pear Tree, 200 S. i\ Ron and Cindy Roets, owner. $2800 grant for carriage house soffet repair, painting and scraping, wooden railing repair and porch shore up. Total project cost, $8400. Project pending completion Spring 2006 -Grant to be awarded upon completion. . SALINA DOWNTOWN, INC. Board of Directors SDI Office, 114A S. 7th Street MINUTES SEPTEMBER 13, 2005 Exterior façade erant recommendation. Chuck Carroll, 200 S. Santa Fe, submitted an application for $408 as an amendment to his previous award to cover expenses that weren't included in the original bid for Carroll's Corporate Offices new awnings. Dave Sanderson, Southwind Physical Therapy, submitted an application for $465 to help replace tom canvas awnings. Kent Buer moved to approve both applicatiòns. , SALINA DOWNTOWN, INc. GUIDELINES FOR 2005 EXTERIOR IMPROVEMENT GRANTS ELIGIBILITY: Property owners and/or tenants who are in good standing with the Business Improvement District (service fees are current). AVAILABLE FUNDS: Minimum $1000 to $5000 maximum per grant. Total 2005 calendar year grant funds available: $10,000. MA TCHING REQUIREMENT: All applications are competitive and require a minimum match of 2: 1 private to SDI grant funds. ELIGIBLE USE OF FUNDS: Exterior improvements only. Projects may include but are not limited to: a. Building expansion b. Vacant building redevelopment c. Facade renovation and restoration (emphasis on removal of metal siding and metal awnings) and/or replacement with new coverings or roll-ups d. Work complying with Salina Downtown Design Guidelines, contingent on Design Review Board approval INELIGIBLE USE OF FUNDS: a. Signage b. Projects with no minimum 2: 1 match c. Projects outside the BID boundaries APPLICATION REQUIREMENTS: (1)Project description and schedule (2) Proposed budget (3) Photos, drawings and.or plans. (See guidelines document and budget worksheet) SELECTION CRITERIA: All projects will be judged on their individual merits and components. The following criteria will serve as the basis of consideration: 1. Ratio of matching funds to private investment (minimum 2 to 1). Additional consideration given to applicants providing more than the minimum match requirements 2. Projects creating new businesses and/or additional employment in downtown will receive additional consideration or priority. 3. Project's relationship to Salina Downtown Design Guidelines APPROVAL: Applications are subject to review and approval by the Exterior Improvement Grant committee (1 member of the Salina Downtown Business Support & Recruitment Committee and a minimum of two BID members-at-large) appointed annually by the SDI President. ADDITIONAL REQUIREMENT: All projects awarded grants must be completed no later than June 17,2006. FUNDS DISBURSEMENT: SDI grant funds will be released to the successful grant applicant upon completion of work and submission of invoices to Salina Downtown verifying the agreed upon match ratio. APPLICATION DEADLINE: Application forms are available from Salina Downtown, Inc. (SDI), 114-A S. Seventh, Salina, Kansas 67401. Completed applications are due at the SDI office no later than 12 noon Tuesday, May 31, 2005. All applications will be reviewed after this date with notification of awards from SDI no later than June 17,2005.