1. Facade Improvement ProgramScandia Economic Development Authority
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 for the program.
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.
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
Washington 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)
• Fagade improvements including painting, sandblasting , siding, soffits tuck pointing,
trim, and stucco repair
• Handicap accessibility
• Exterior lighting
• Awnings
INELEGIBLE IMPROVEMENTS:
• Roofs
Scandia Economic Development Authority
Facade Improvement Loan Program
• Foundations
• Landscaping
• Private parking lots
• Cement work such as private steps and sidewalks that does not provide handicap
accessibility
• Building Additions
• Garages or storage buildings
• Playground equipment
• Decks
• Signs
• 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 Scandia EDA will accept applications to the loan program on a
first come, first served basis starting April 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
secured by the underlying property. 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;
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Scandia Economic Development Authority
Facade Improvement Loan Program
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 EDA approves all expenditures on the 2nd Monday of each month. Invoices must be
received at least one week prior to the EDA meeting for their consideration. Please advise your
contractors of this schedule.
REPAYMENT: There are no prepayment penalties for early payment.
Subordination by City: 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.
pg. 3