5.a Facade Improvement Program
Facade Improvement Loan Program
PURPOSE: The purpose of the Facade Improvement Loan Program is to offer
low interest loans to commercial building owners in the Village Mixed Use and
Rural Commercial zoning district to make exterior improvements that enhance
the “curb appeal” of their property consistent with the City’s Architectural
Design Guidelines or the original architecture of the building.
FUNDING: The Scandia EDA is dedicating $20,000 to be made available to the
fund.
LOAN AMOUNTS: Minimum loans of $1,000 and maximum loans of $5,000 will
be provided to match up to 50% of the improvement costs.
LOAN TERMS: Up to 10 year loans at 1% interest assessed to the property tax
statement.
DESIGN PLANS: The applicant is responsible for providing their designs. All
designs must comply with the City’s Architectural Design Guidelines or the
original architecture of the building.
ELIGIBLE BUILDINGS INCLUDE: All buildings located in the Village Mixed Use
and Rural Commercial districts except properties classified as residential,
church or public in the Chisago County property tax system. Real Estate taxes
must be current.
Buildings may receive more than one loan. But, if a building has received a
loan(s) from the City of Scandia in the past, future applications are only eligible
for the difference between the maximum loan amount and the amount
remaining to be paid on the previous loan(s). For example, if the previous
loan(s) total $2,500 with a balance due and payable of $1,000 – the applicant
would be eligible for up to $4,000 in new money. No loan or combination of
loans shall exceed $5,000.
Buildings having received a $5,000 loan may only reapply for another loan
after the previous loan is paid off.
ELIGIBLE IMPROVEMENTS: Improvements that can be viewed from the public
right-of-way including:
Windows and doors (Must be viewable from the public right of way)
Painting, sandblasting or other façade improvements such as siding,
soffits and Facade, tuck pointing, trim, and stucco repair
Handicap accessibility
Exterior lighting
INELEGIBLE IMPROVEMENTS:
Roofs
Foundations
Landscaping
Private parking lots
Cement work such as private steps and sidewalks (Must be viewable
from the public right of way)
Additions
Garages or storage buildings
Playground equipment
Decks
Signs and awnings
Elements not visible from the public right of way
Anything not permanent or affixed to the property
COMPETITIVE BIDDING: A minimum of two bids per project is required.
Please provide a copy of the bids with your loan application. Contractors must
be licensed by the State of Minnesota.
APPLICATION PROCESSING: The City of Scandia will accept applications to the
loan program on a first come, first served basis starting March 1, 2018. The
City will assign a number to each application as it comes in to the City. The
application will be forwarded to the City of Scandia’s EDA for review. The
EDA will review the application and if an application is deemed ineligible for
any reason, the EDA will review and consider the next application in line.
Ineligible applications will be returned to the applicant with an explanation of
why the application was deemed ineligible. The ineligible applicant may reapply
when the application is corrected but will be placed in line at the new date of
application.
* Businesses who lease space must get written approval from the owner of the
property. The property owner must sign the Application.
BUILDING PERMITS: The property owner or their agent is responsible for
obtaining all of the proper building permits for the project in question.
WORK COMMENCEMENT/COMPLETION: Work cannot commence until the
EDA approves the loan and the property applicant and building owner have
signed the Repayment Agreement. Weather permitting; all projects must be
completed within 120 days of the date the loan is closed.
PROCEEDS DISBURSEMENT PROCESS: The City’s building official will verify
completion of the work. The City will only reimburse the final project cost
validated through contractor materials and labor. The applicant shall submit
all required paperwork to the City and a two-party check will be issued payable
to both the loan recipient and the contractor or materials supplier. The EDA
requires the following items to disburse loan funds:
1.) Final project cost verified through invoices from contractor;
2.) Completion certificate signed by the loan recipient and the contractor;
3.) Copies of all required City permits indicating final inspection by the City
building official;
4.) Final inspection by the EDA or its representative.
The Scandia City Council approves all expenditures on the 3rd Tuesday of each
month and invoices must be received at least one week prior to the council
meeting for their consideration. Please advise your contractors of this schedule.
REPAYMENT: There are no prepayment penalties for early payment.
Subordination of City Lien: In the event that the Owner borrows money from a
private institution to fulfill his/her obligations hereunder, or in the future, the
City shall subordinate the repayment agreement lien to any mortgage given in
furtherance of this agreement.
Satisfaction of Mortgage: Upon request of the Owner, the City will issue a
Satisfaction of Mortgage, to be recorded at the Owner’s expense.