2b. Arts Heritage Ctr Update to City Council_8-31-23Water Tower Barn
SCANDIA ARTS & HERITAGE CENTER
Update and Requests to Scandia City Council
September 6, 2023
Funds Raised to Date
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Quick Update
State Funding of $2.2 Million Approved!
General Fund (rather than bonding) Dollars Means:
No match requirement, but must show funds “to build to completion”
More flexibility regarding legal requirements and sources of additional funds
DEED project manager confirmed flexibility to use Historic Tax Credits or Legacy Grants through the MN Historical Society
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National Register of Historic Places – How and Why
Why? -- Historic tax credits and Legacy grants require National Register status
How? -- Requires there be a “structure” in place
-- SHPO has advised National Register eligibility in the “engineering” category based on the historic windmill technology
-- SHPO will consult on minimum re-erection requirements
-- Goal is to do a minimal re-erected “structure,” since
re-erection does not qualify for either tax credits or
Legacy grants
Value: -- Tax credit value approximately $300,000
-- Legacy grant estimated $150,000-200,000
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Council Requests
(1) Approval for SHA to re-erect the original East Section
ahead of the full project to meet the “structure” requirement
Timing: Summer 2024
Current Status: SHPO site visit and proposal
review September 13
“Structure” will require foundation and site grading
Building will be structurally sound, weather tight, and secure -- but as minimal as SHPO will approve.
Not certified for occupancy.
Mural facing Olinda will show CAD illustration of the completed project
All funds must be from SHA, not the State grant
We believe the building may be the state’s only remaining tankhouse, and we are working closely with the State Historic Preservation Office to seek placement on the National Register
of Historic Places.
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Council Requests
(2) Approval for legal structure with a “for-profit” entity to allow qualification for Historic Tax Credits
Federal Historic Tax Credits require formation of a for-profit entity. This would be together with a bank that can benefit from the credits and provide approx. 80% of the value back
to the project
State General Fund dollars allow user/tenant to be a for-profit without any special legislative approval (DEED has confirmed)
SHA would be managing partner of the for-profit entity and manage operations
Tax Credits are likely more valuable than a Legacy grant
After credit period (5 years), the Tax Credit investor will normally exit the entity allowing reunified ownership
We believe the building may be the state’s only remaining tankhouse, and we are working closely with the State Historic Preservation Office to seek placement on the National Register
of Historic Places.
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We believe the building may be the state’s only remaining tankhouse, and we are working closely with the State Historic Preservation Office to seek placement on the National Register
of Historic Places.
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Thank You –
and Q&A
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We anticipate that our close-proximity to the Twin Cities and other regional attractions like the Gammelgarden Museum, William O’Brien State Park, the Gateway Bike Trail, and the St.
Croix River will draw visitors and allow us to serve surrounding communities.
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Master Plan
Peter Hilger, AIA
Rylaur, LLC
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Location: South Community Commons
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Plaza
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Programming
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The Master Plan -
3D Conceptualization
Flyover Video Presentation
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