2022.04.05 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, APRIL 5, 2022
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from March 1, 2022 Regular Meeting.
4. Approval of a façade improvement deferred loan repayment agreement for Elision
Playhouse at 6105 42nd Ave. N.
5. Authorize issuance of Requests for Proposals for development of EDA properties at
4824 56th Ave. N. and 3401-3415 Douglas Dr. N.
6. Other business *
7. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 2
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
March 1, 2022
1. Call to Order
President Banks called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:11 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan
Banks, John Budziszewski, David Cummings, Therese Kiser, Nancy LaRoche and Olga
Parsons.
The following staff were present: Acting Executive Director Kim Therres, Deputy
Executive Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Adams (Budziszewski) to approve the minutes from the
January 4, 2022 annual organizational meeting. Motion carried.
4. Presentation of 2021 Annual Report
Staff presented the 2021 Annual Report and answered questions from the Board.
5. Approval of 2022 Work Program
Staff presented the proposed 2022 Work Program and answered questions from the
Board.
Moved by Commissioner Budziszewski (LaRoche) to approve the 2022 Work Program.
Motion carried.
6. Other Business
Staff provided an update on properties at 3600 Douglas Dr. N. and 5358 West Broadway.
7. Adjournment
Moved by Commissioner Budziszewski (LaRoche) to adjourn the meeting. Motion
carried. The meeting adjourned at 7:41 p.m.
Page 2 of 2
These minutes of the March 1, 2022 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Brendan Banks, President
ATTEST:
______________________________
Nancy LaRoche, Secretary
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
DATE: March 30, 2022
TO: Anne Norris, Executive Director (for April 5 EDA meeting)
SUBJECT: Approval of a façade improvement deferred loan repayment agreement for
Elision Playhouse at 6105 42nd Ave. N.
BACKGROUND
In 2021 Hennepin County granted $30,000 to the city/EDA for storefront/façade improvements
in particular business districts along Bass Lake Road, 42nd Ave. N. and Douglas Dr. N.
Summary of program guidelines:
• Assistance is provided in the form of a deferred, forgivable, no interest loan for 50% of the
project cost, subject to a maximum forgivable loan of $12,500.
• The deferred loan has a 10-year term with the balance reduced by 10% each year.
• If the property is sold during the 10-year term, full repayment of the remaining loan balance
would be required. Any repayments would be used to capitalize a revolving loan fund for
Crystal to continue the program after the county funding is exhausted.
• The minimum project is $10,000 (meaning a $5,000 forgivable loan).
• There is no maximum project but the maximum forgivable loan is $12,500 even if the
eligible project costs exceed $25,000.
APPLICATION RECEIVED
Elision Arts, LLC, owner of Elision Playhouse at 6105 42nd Ave. N. (“Elision”), has submitted
an application for façade improvement assistance.
• Elision proposes to tuckpoint the east building wall and repaint it, including an 18’ tall x 65’
wide mural that would cover approximately half the length of the wall.
• Elision anticipates completing the work in summer 2022.
• The total eligible project cost is $36,637.50, comprised of $25,500.00 for tuckpointing the
east wall and $11,137.50 for the mural.
• $18,318.75 is 50% of the eligible project cost but the maximum assistance is $12,500 so
that will be the amount of the 10-year deferred, forgivable loan.
EDA STAFF REPORT
Façade Improvement Assistance
Elision Playhouse - 6105 42nd Ave. N.
EDA ACTION REQUESTED
Approval of the attached Repayment Agreement with Elision Arts, LLC.
___________________________________________________________________________
Elision Playhouse - 6105 42nd Ave. N.
2020 Aerial Photo
▲
NORTH
Elision Playhouse - 6105 42nd Ave. N.
2019 Street View of East Wall
Proposed Mural (would cover approx. half the length of the east wall)
2022 StorefrontfFac;ade
Improvement Application City staff contact: John Sutter 763.531.1130 john.sutter@crystalmn.gov 4141 Douglas Dr N, Crystal MN 55422 1.Prop rty Address: 2.Property Identification Number (PIO):j 61 op 42nd Avenue No II.__ 1_61_1_a2_1_2 3_o_o9_o _______ ____.
3.Busi�ess Tenant Space Address(es) if different from Property Address:
4.Busir ess Applicant 5.Property Owner (if different from Business Applicant):Narre: Cindy Polich Name:----------------Mai Ii n g add ress: 6105 42nd Avenue No Mailing address: ____________ _City: CryStal State:lt,,,J Zip: 55422 City: ________ State:_ Zip: __Telethone: 612-6 6 2-61 o 5 Telephone:Ema I: info@elisionplayhouse.com Email:----------------
6.Proje I t description, anticipated timing, and estimated cost (attach additional sheets if necessary): Tuc�pointing plus mural painting on the east wall of the building (seen as you come west from Hw,1 100). When we began renovating the building we had sufficient funds to tuckpoint and muralhalf of the west wall. Additional tuckpointing is required, and we want to add "Elision Playhouse" and a mural painted on the east wall to provide an appealing view as people drive by from that side The work would be done this summer (starting in May, and completed by August ). Esti1111ated total cost is approximately $38,000 for the tuckpointing and $9,000 for the mural.
7.Certif cations:
□ Yes l!J No We are interested in receiving no-cost architectural and design assistance from a firm provided by theI city (up to $1,000 per business tenant and $3,000 per property). IB'Yis □ No We have reviewed and understand the Program Guidelines.l:!rYes □ No We have reviewed the Repayment Agreement template, understand the terms of this assistance, and acknowledge that the property owner is encouraged to have the Agreement reviewed by legal counsel. ■ Y s □ No We understand that no assistance is committed by the City of Crystal or its Economic DevelopmentAuthority until a Repayment Agreement is executed by both the property owner and the City/EDA, and recorded against the property. Ei?'Y s □ No We understand that information provided on this application and any subsequent program-related documents and communications are public data and may be disclosed to any person or entity in accordance with Minnesota Government Data Practices Act and Rules.
Signatu 'e of Property Owner (if different from Business Applicant)
Date: _________ _
Elision Arts LLC
3401 E. Via Palomita
Tuscon AZ 85718
(same)
(same)
(same)(same)
The Economic Development Authority of the City of Crystal (EDA) has established the following
guidelines for the storefront/façade improvement assistance program:
General Guidelines
•Eligibility is limited to those properties described as being within Areas A, B or C on pages 4-6
of these Guidelines.
•Assistance is a no-interest loan for up to 50% of the cost of eligible improvements.
•Loans shall be in the form of a Repayment Agreement that will be recorded by the EDA as a
lien against the property.
•Loans will have a 10-year term. The loan balance will be reduced by 10% each year and
forgiven after 10 years.
•If the property is sold during the 10-year term, the remaining loan balance is immediately due.
Note: Repayments will be used to capitalize a revolving loan fund for the EDA to continue
the storefront/façade program after Hennepin County funding is exhausted.
•Minimum project size is $10,000
Note: This would qualify for a $5,000 forgivable loan
•There is no maximum project size, but the maximum forgivable loan is $12,500.
•Funds will not be disbursed until after the work is complete, the EDA receives documentation
that all invoices for work have been paid in full, and the EDA receives a fully executed and
recordable Repayment Agreement.
Eligible Applicants
•Property owners, tenants and for-profit and not-for-profit businesses are eligible, provided
funds are primarily used for physical building improvements.
•If the applicant is not the property owner, a written statement of support from the property
owner and, prior to disbursement of funds, the property owner’s notarized signature on a
recordable Repayment Agreement are required.
•The property must be up-to-date on all property taxes, assessments, utility bills and other city
charges at the time of application submittal.
•Business applicants and property owners are allowed no more than one forgivable loan per
calendar year.
2022 Storefront/Façade
Program Guidelines
City staff contact:
John Sutter 763.531.1130
john.sutter@crystalmn.gov
4141 Douglas Dr N, Crystal MN 55422
Eligible improvements
Storefront improvement assistance may be used for a variety of exterior building façade
improvements. The work must be visible from the public street. A façade is defined as an
individual storefront or commercial building side which faces a public-right-of-way or is otherwise
visible to the general public from the street.
The following improvements are eligible:
•Restoration of exterior finishes and materials
•Masonry repairs and tuckpointing
•Exterior painting or re-siding (professional cleaning)
•Removal of architecturally inappropriate or incompatible exterior finishes and materials
•Repair or replacement of windows and doors (replacement must be architecturally appropriate)
•Canopy or awning installation or repair
•Exterior lighting
•Green Façade Improvement (i.e. Living Wall, ecofriendly [non-VOC] paint, reclaimed wood,
etc.)
•Repair or replacement of exterior signage
•Outdoor patio seating
•Decorative bike parking
•Improvements to building access for pedestrians and people with disabilities
•Exterior building or accent lighting (parking lot lighting ineligible)
•Landscaping work done as part of a larger project (up to 25% of total project cost eligible)
•Projects must be completed prior to the end of the city’s contract with Hennepin County
(December 31, 2022). Be sure to verify project timeline with all contractors.
Ineligible activities
The following activities are not eligible:
•Purchase or lease of real property
•Improvements already in progress or completed prior to contract approval
•Routine maintenance that is not part of an eligible storefront improvement project
•Improvements to a building interior, rear, or side not visible from a public street
•Improvements to residential buildings (excluding buildings with a mix of residential and
commercial/retail)
•Roofing
•HVAC systems, building mechanicals, or security systems (including roll-down gates, window
bars, cameras and alarms)
•Fencing (excludes decorative fencing as part of landscaping improvement)
•Parking areas
•Billboards, roof signs, temporary signs, and signs placed in or on windows
•Monument, dynamic display or electronic message signs
•Purchase or rental of tools and equipment, or for labor performed by the building or business
owner, family members, employees, or any other person with a financial interest in the
property or business. Grant funds may be used to pay for materials.
•Seasonal decorations or temporary improvements.
•Any other improvement not included in the list of improvements.
Procedure
1.EDA provides Guidelines, Application Form and Repayment Agreement template on city website,
by request, and by direct outreach to businesses and property owners in the eligible areas.
2.EDA makes architectural and design assistance available at no cost, up to a maximum of $1,000
per business property and $3,000 per real property with multiple business tenants.
3. Applications including any project designs, drawings, etc. will be reviewed by EDA staff and, if
complete, will be considered by the EDA Board of Commissioners at its next available regular
meeting.
4.If the application is approved, funds will be disbursed upon completion of the approved project and
receipt of the following:
a.Invoices and proof of payment/lien waivers from vendors/contractors
b.A fully executed and recordable Repayment Agreement from the property owner, which the
EDA will record as a lien on the property
c.Any other documentation necessary for EDA staff to verify that the project has been completed
in accordance with the approved application
ELIGIBLE PROJECT AREAS
1
REPAYMENT AGREEMENT
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL STOREFRONT AND FAÇADE IMPROVEMENT ASSISTANCE PROGRAM THIS REPAYMENT AGREEMENT (“Agreement”) is made and entered into this ____ day of _____________, 20___ (the “Effective Date”), by and between Elision Arts, LLC, a Minnesota limited liability company (the "Owner"), and the Economic Development Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota, located at 4141 Douglas Dr. N., Crystal, MN 55422 (the "EDA”). A. On or about March 23, 2022, the Owner submitted to the EDA an application (the “Application”) for grant money under the EDA’s Storefront and Façade Improvement Assistance Program (the “Program”). B. The Program was established and funded pursuant to that certain Business District Initiative Grant Agreement, Contract No. PR0003544 (the “Grant Agreement”), between the City of Crystal (the “City”) and Hennepin County (the “County”).
C. To facilitate the EDA’s ability to administer the Program, the City assigned all of its rights and obligations contained in the Grant Agreement to the EDA.
D. On April 5, 2022, the EDA determined that the Owner met Program eligibility requirements and agreed to grant the Owner $12,500 (“Grant Funds”) through the Program.
E. The Grant Funds are solely for the purpose of partially funding certain exterior improvements, as described in the Application, to the Owner’s real estate located on the property legally described on Exhibit A attached hereto (the “Property”), all in accordance with this Agreement and the Program guidelines.
F. The issuance of the Grant Funds is conditioned on the Owner’s execution of this Agreement. NOW THEREFORE, in consideration of said Grant Funds, the parties do hereby agree as follows.
2
1. The Owner covenants and agrees that the Grant Funds will not be paid by the EDA to the Owner until the improvements described in the Application are completed and full payment has been made to the contractors performing the work, and the Owner shall provide to the EDA any documentation or other evidence that may be reasonably required by the EDA to prove the same. Additionally, the parties acknowledge that this Agreement and the improvements contemplated to the Property are subject to all Program guidelines, as contained in Attachment A of the Grant Agreement, which guidelines are incorporated into this Agreement as if fully set forth herein. 2. The Owner covenants and agrees with the EDA that if the Property is sold, transferred or otherwise conveyed (including a sale by contract for deed), voluntarily or involuntarily to any third party within a period of ten (10) years after the Effective Date (a “Triggering Event”), the Owner or its heirs, executors, or representatives, as the case may be, shall repay to the EDA a sum equal to the full amount of the Grant Funds, provided, however, that on each annual anniversary of the Effective Date, the total balance owed following a subsequent Triggering Event shall be reduced by 10% of the total amount of Grant Funds paid hereunder. Accordingly, any repayment that is required under this paragraph following a Triggering Event shall total such reduced amount, pursuant to the aforementioned annual reductions of 10% of the Grant Funds. Repayments required herein shall be made to the EDA no later than the 30th day following the Triggering Event, or on such later date or dates as the EDA, in its sole discretion, may designate. If no Triggering Event occurs within ten years following the Effective Date, no repayment of the Grant Funds shall be required and the entire balance will be considered forgiven in accordance with Program guidelines. 3. As security for the Owner’s obligation above to make repayment to the EDA following a Triggering Event, the Owner hereby grants and the EDA shall and hereby does have, a lien on the Property in the full amount necessary to satisfy said repayment obligation and any costs, including reasonable attorneys’ fees, incurred by the EDA for collecting the same.
4. Prior to the date of any Triggering Event, at least 20 days’ notice thereof shall be provided by the Owner or its heirs, executors, or representatives, as the case may be, to the EDA at the address contained in the preamble to this Agreement.
5. In the event the Owner or its heirs, executors or representatives, as the case may be, fails or refuses to make the repayment required under paragraph 2 of this Agreement following a Triggering Event, the EDA may, with or without notice to the Owner or its heirs, executors or representatives, as the case may be, foreclose said lien in the same manner as an action for the foreclosure of mortgages upon the Property, as by statute provided.
6. The lien created by this Agreement shall terminate and shall be of no further force or effect 126 months following the Effective Date, unless the EDA has, on or before that date, (a) commenced an action the manner provided by statute for the foreclosure of the lien, and (b) filed for record a notice of said action, or a power of attorney to foreclose mortgage, or a lis pendens referring to the same, in the office of the County Recorder or Registrar of Titles, as the case may be, in Hennepin County, Minnesota. The EDA may, in its sole discretion, extend said termination date of said lien by filing for record, on or before said termination date, a signed agreement with the Owner or its heirs, executors or representatives evidencing such extension.
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7. This Agreement shall run with the Property and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. This Agreement will be recorded against the Property by the EDA and, to that end, the parties hereto agree to make any revisions that may be necessary to facilitate such recording.
8. This Agreement shall be governed by the laws of the State of Minnesota. In the event that any provision or clause of this Agreement shall conflict with applicable law, such conflict shall not affect the other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Agreement are declared to be severable.
[signature page to follow]
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IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first written above. OWNER EDA _____________________________ _____________________________ Cynthia Polich, Chief Manager President _____________________________ Executive Director STATE OF MINNESOTA ) )ss COUNTY OF HENNEPIN ) On this ____ day of ________________, 20___, before me, a Notary Public within and for said County, Brendan Banks and Anne Norris, President and Executive Director of the Economic Development Authority of the City of Crystal, respectively, personally appeared to me known to be the person(s) described herein and who executed the foregoing instrument and acknowledging that they executed the same as their own free act and deed, on behalf of the Economic Development Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota. ______________________________ Notary Public STATE OF MINNESOTA ) )ss COUNTY OF _________ ) On this ____ day of ________________, 20___, before me, a Notary Public within and for said County, Cynthia Polich personally appeared to me known to be the person(s) described herein and who executed the foregoing instrument and acknowledging that they executed the same as their own free act and deed, on behalf of Elision Arts, LLC, a Minnesota limited liability company. ______________________________ Notary Public
This document was drafted by:
Kennedy & Graven, Chartered
150 Fifth Street South, Suite 700
Minneapolis, MN 55402
612-337-9300
A-1
EXHIBIT A Legal Description of the Property
The property located in the City of Crystal, Hennepin County, Minnesota legally
described as:
Lot 2, Block 1, Rockford Road Addition, according to the recorded plat thereof.
Page 1 of 3
____________________________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________________________
TO: Anne Norris, Executive Director (for April 5 meeting)
DATE: March 31, 2022
SUBJECT: Authorize requests for proposals for EDA-owned lots at 4824 - 56th Ave. N.
and 3401-3415 Douglas Dr. N.
On March 1, 2022 the EDA approved its work program which included the disposition of two
properties owned by the EDA, 4824 – 56th Ave. N. and 3401-3415 Douglas Dr. N.
Work Program Excerpt - 4824 - 56th Ave. N.
EDA Staff Report
Requests for Proposals
4824 56th and 3401-3415 Douglas Dr
Page 2 of 3
Work Program Excerpt - 3401-3415 Douglas Dr. N.
Staff has prepared Requests for Proposals (RFPs) for both properties and is requesting that
the EDA authorize the posting of these RFPs to develop both properties. The table on the
following page outlines significant elements of the RFP for each property.
REQUESTED EDA ACTION:
Authorize Requests for Proposals for development of 4824 – 56th Ave. N. and
3401-3415 Douglas Dr. N.
Page 3 of 3
DESCRIPTION OF THE TWO RFPs
RFP Element 4824 – 56th Ave N 3401-3415 Douglas Dr N
Land use guidance Low Density Residential Medium Density Residential
Property area 0.45 acres 0.69 acres
Property sale price
(this is a minimum price -
developers may offer more)
$100,000 $200,000, but this may be
reduced if the clean-up costs
are not covered by the grant.
Proposed property use Two-family dwelling Apartment building or a
commercial building that is
compatible with the
surrounding neighborhood
Soil contamination issues Property is adjacent to a
former gas station. Env.
investigation determined there
is contamination only at the
property line.
Property had a former gas
station and the environmental
investigation determined that
soil contamination exists.
Property cleanup required No Yes
Environmental remediation Staff will seek MPCA approval
of a Response Action Plan
(RAP) which provides
guidance if contaminated soil
is encountered
Staff will seek MPCA approval
of a RAP and also apply for
grant funding for property
clean-up.
Zoning approvals Rezone property from
Commercial to R-1
Dependent upon the proposal
–site plan or CUP approval,
or rezoning to Planned
Development (PD). A lot
consolidation (replat) and
easement vacation will also
be required.
Anticipated Timeline 5/9 – PC rezoning hearing
5/10 - Proposals due
5/17 – EDA selects proposal;
first reading of rezoning
ordinance
6/7 – Second reading
10/4 - EDA lot sale hearing
10/14 - Sign development
agreement and provide
$2,000 earnest money
12/14 - Lot purchase closing
for 2023 construction
5/10 – Proposals due
5/17 – EDA selects proposal
6/1 - EDA lot sale hearing
10/4 - EDA lot sale hearing
10/14 - sign development
agreement and provide
$5,000 earnest money
10/18 - Submit UDC appl.
11/14 - PC hearing
12/06 - CC action
2/2023 - Lot purchase closing
for 2023 or 2024 construction