EDA Meeting Date: April 28, 2025
To: Members of the Economic Development Authority
From: Emery John, Program Associate
Nate Carlson, Economic Development Coordinator
Title
Façade Improvement Grant Awarded 2025
Body
Action Requested:
The EDA shall receive a presentation from staff regarding the EDA’s Façade Improvement Program.
Summary Report:
Applications to the 2025 Façade Improvement Grant opened on February 1, 2025 and closed on March 14, 2025. Staff reviewed five applications for the available $20,000 and awarded and entered into grant agreements with two applicants: Northside Boards at 409 Division, and By All Means Graphics at 17 Bridge Square. The proposed work includes window and door replacements and tuckpointing.
Background
The program was originally created in 2019 to offer building owners incentive to invest in building exteriors, specifically in the downtown district. The program is designed to address the then-established strategic plan priorities of, “Strengthen downtown as a destination,” and, “reinvest in character and sustain sense of place.” The grant program is modelled on similar successful programs throughout the state, including those in Columbia Heights, Farmington, Hopkins, Marshall, Richfield, and Shakopee and was funded for three years.
By the end of the first three-year iteration of the program, the EDA granted $127,279 to 13 different recipients, spurring $213,581 in private investment, for a total of over $340,000 investment in the aesthetics, vitality, and longevity of the Downtown.
In 2023, the EDA voted to extend the program for another three years to 2026. The program continues to be a popular source of funding for downtown building owners. In the last two years the façade improvement grant program issued $162,794 for building projects in the eligible area, matched with $346,311 from property owners. The program has inspired more than $500,000 of investment since the inaugural year.
Program changes in 2023 initiated by the EDA loan subcommittee include reducing the percentage of project cost eligible for grant reimbursement from 50-percent to 30-percent. The intent of the changes is to inspire building owners to take on more extensive projects. Over the first three years of the program, the median total project cost was $24,363, and the mean is $26,220. The 2025 applications represent the largest total project cost submitted: one just under $37,000 and the other just under $85,000.
Another subcommittee recommendation extended the period of time for the work to be completed from 12 months to 18 months. The stated rationale for the change is to account for a rapidly shifting supply chain and strained availability of contractors and to ensure funded projects can be completed. Since the change, all projects using the program have been completed in the contracted time frame.
Alternative Options:
None at this time.
Financial Impacts:
This program is funded by $20,000 from the EDA levy.
Tentative Timelines:
February 1, 2026: Applications launch for 2026 round of Façade Grant
March 15th 2026: Deadline for applications
March 22nd 2026: Award letters sent