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Home My WebLink About[11b] Demolition Grant PolicyCITY OF KT. JOSEPH MEETING DATE: July 21, 2011 Council Agenda Item 11 AGENDA ITEM: Demolition Grant Policy SUBMITTED BY: Cynthia Smith - Strack, EDA BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The EDA reviewed the program concept and draft guidelines at their June meeting. The EDA approved the guidelines and recommended the City Council approve the program concept and guidelines. The EDA will seek funding for the grant as part of its 2012 CIP request. At this time staff is aware of three persons seriously interested in utilizing the grant program. PREVIOUS COUNCIL ACTION BACKGROUND INFORMATION: At a previous meeting the EDA received a suggestion for implementing a demolition grant program. The EDA agreed to address a potential program in conjunction with the 2012 CIP consideration. The demolition grant program will result in the creation of recognizable development sites in previously built -up urban areas which will act as a catalyst for redevelopment in infill areas. The purpose of the Demolition Grant Program is to provide an incentive for razing of structures in a manner targeting lots with existing structures that have passed there useful life and which are located within or adjacent to concentrated business areas. The intent of the program is to create vacant, buildable parcels in existing St. Joseph business districts by removing principal structures from previously built -up lots in urban areas. The program will provide a matching reimbursement grant for actual demolition costs, up to $2,500 per property address. "Demolition Costs" will mean the costs of demolition, destruction, removal, and clearance of all structures and other improvements on the subject site, including interior remedial activities, and proper disposal thereof. Eligible demolition costs up to the matching amount will be reimbursed following submission of invoices from a licensed contractor and inspection by the Building Official for compliance with demolition permit standards. Please find draft guidelines attached. They are based on language contained in a draft demolition program being requested by Mn. Department of Employment & Economic Development, our existing BFA program process, and similar demolition programs active in similar sized communities. 11(b):1 BUDGET /FISCAL IMPACT: The Policy itself does not create a budget impact, but once adopted and funded the impact with be a business subsidy, with a return on investment. ATTACHMENTS: Request for Council Action ............ ............................... 11(b):1 -2 Proposed Demolition Grant Policy ............................... 11(b):3 -6 REQUESTED COUNCIL ACTION: Consideration of new grant program and guidelines is kindly requested. If comfortable with the revisions, a MOTION to authorize the program is kindly requested. 11(b):2 ST. JOSEPH BUSINESS DISTRICT DEMOLITION GRANT PROGRAM PURPOSE The St. Joseph Economic Development Authority finds the creation of recognizable development sites in previously built -up urban areas will act as a catalyst for redevelopment in infill areas. The purpose of the Demolition Grant Program is to provide an incentive for razing of structures in a manner targeting lots with existing structures that have passed there useful life and which are located within or adjacent to concentrated business areas. The intent of the St. Joseph Business District Demolition Grant Program is to create vacant, buildable parcels in existing St. Joseph business districts by removing principal structures from previously built -up lots in urban areas. The program provides a matching reimbursement grant for actual demolition costs, up to $2,500 per property address. "Demolition Costs" means the costs of demolition, destruction, removal, and clearance of all structures and other improvements on the subject site, including interior remedial activities, and proper disposal thereof. Eligible demolition costs up to the matching amount will be reimbursed following submission of invoices from a licensed contractor and inspection by the Building Official for compliance with demolition permit standards. Demolition grant priorities include projects that: • Remove structures that threaten public safety • Have been vacant for a time • Have development potential • Are close in proximity to existing sufficient public infrastructure • Have identifiable potential commercial or institutional reuses The aforementioned priorities are not listed in a rank order or priority, rather each project should be compared to the standards. The EDA may weigh each factor, depending on the facts and circumstances, as the EDA considers appropriate. The EDA may consider other factors that affect the net return of public investment. ELIGIBILITY 1. All work must be done on existing principal structures but may also be used for demolition of accessory structures provided a principal structure is included in the demolition. 2. All work done must be in accordance with the City of St. Joseph Code of Ordinances, the Downtown Revitalization Plan and the building code. All required permits must be obtained. 3. Work in progress or performed prior to project approval will typically not be eligible for funding unless the EDA finds significant underlying purposes for work beginning prior to project approval. 4. The following types of property are not eligible: • Tax delinquent • Special Assessment delinquent • Property in litigation • Property in condemnation or receivership • Tax exempt properties • Properties zoned for industrial use 11(b):3 PROJECT APPROVAL GUIDELINES Program oversight and authority for grant approval is delegated to the City of St. Joseph Economic Development Authority. The Economic Development Authority will review and approve all grants based on the following guidelines: 1. A project for which an application has been received will only be reviewed if it is filled out completely. 2. Multiple property owners must submit a single application signed by each property owner for each property/project. 3. Projects must be completed within a timely manner from date of demolition permit approval (i.e. one year with a maximum extension of an additional six months). As indicated, dollars are limited and reimbursement will be made after the demolition is completed, and reimbursement requested. PROPERTY OWNER REQUIREMENTS Upon the application submittal for a project, the Applicant will play an important role in a partnership that includes the City of St. Joseph and the Economic Development Authority. The following may be required to review plans depending on the scope of the project: City staff, the Planning Commission, the EDA and the City Council. Below are items that may be required of as part of completing your project. 1. Attendance at an informational meeting with staff which will outline the entire project procedure. 2. Attendance at various meetings, reviews etc. with representatives of either the City or EDA to expedite various stages of the project. 3. All work to be done on the project shall be the sole responsibility of the property owner. The City of St. Joseph /EDA administers the grant program herein and the City/EDA is not responsible for any work undertaken as a result of the grant. The owner hereby holds the City and EDA harmless for any and all liability commencing out of any work constructed and paid for the demolition grant herein. 11(b):4 APPLICATION FOR ST. JOSEPH BUSINESS DISTRICT DEMOLITION GRANT PROGRAM ** Please read attached program criteria carefully before completing the application ** Business Name (if applicable): Property Address: Property Owner(s): Mailing Address: Phone Number: Fax Number: E -Mail Address: 1. On the attached page, please identify the specific demolition actions you are proposing for the building(s) and /or property. 2. Please provide your best estimate of the cost for demolition contemplated: 3. If demolition costs come in at, or exceeds your estimate, do you have private funds readily available to complete the demolition? Yes No If No, by what means will you secure funding and still complete the demolition within a timely manner 4. If your demolition grant is approved, does completing the demolition in a timely manner pose any concerns for you? Yes No If yes, Please list those concerns: 11(b):5 DESCRIPTION OF DEMOLITION Please provide an accurate and thorough summary of your demolition project Photographs taken of your buildings) and property will assist in a visual manner to further support your written project description. Please consult the Building Official prior to completing this application to discuss demolition permitting process and potential for extenuating circumstances (e.g. asbestos, lead paint). The information on this application is accurate. I have read, understand, and agree to comply with the program criteria for the St. Joseph Business District Demolition Grant Program. Authorized Agent: Date: Title: Mail or Deliver to: St. Joseph Business District Demolition Grant Program, City of St Joseph Economic Development Authority 25 College Avenue North, P.O. Box 668 St. Joseph MN 56374 11(b):6