Date: November 16, 2017
To: Members of the Economic Development Authority
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Development Director
Title
Funding Request for Sidewalk Improvements
Body
Summary and Action Requested:
Consideration of a funding request from NCG Holdings, LLC to assist in sidewalk improvements for Economic Development Partners Co-Location facility.
Background:
NCG Holdings, LLC has been in operation since 2015 located at 25 Bridge Square, Northfield, MN. The real estate and facilities management company has been working to acquire and improve four properties since inception. Currently, NCG is working to remodel one of those properties (i.e. 19 Bridge Square).
The renovation project for 19 Bridge Square was prompted by the potential co-location of the Economic Development Partners (i.e. Chamber of Commerce, Convention and Visitors Bureau, Northfield Downtown Development Corporation, and Northfield Enterprise Center). In order to best facilitate the co-location, NCG Holdings, LLC is prepared to make significant investment to the property to provide a more collaborative workspace and a reduction of rent to make space feasible for the intended tenants.
At this time, NCG Holdings, LLC is requesting assistance with pavement correction of the sidewalk in order to make the entrance wheelchair accessible for 19 Bridge Square, the potential location for Economic Development Partners Co-Location facility. Chief Executive Officer, Dave Neuger, has provided a proforma of the remodel effort, which can be found attached to this report. Dave Neuger has worked with Economic Development Coordinator, Nate Carlson, on this request. This request was initially sent through the Micro-Grant program. However, Loan Committee members did not find the Micro-Grant program would be the prudent avenue to facilitate the project. Loan Committee members expressed support for the project and recommended that the request be made directly to the EDA Board. The minutes of the meeting are attached.
Economic Development staff has been working with City Engineering Department to understand the scope of the project and costs related to pavement correction. Public Works Director, Dave Bennett, informed Staff the project would cost roughly $3,000 to remove and replace 35 feet of concrete sidewalk. Engineering staff would facilitate sidewalk specification requirements as the project moves forward.
The funding for this project by the EDA could come in the form of reimbursement or a matching grant specifically for the sidewalk correction. Supporting the co-location of the Economic Development Partners has been an ongoing initiative the EDA has supported for the past few years. Financial support for the co-location initiative could be financed from the “Other Projects” line item.
Should the EDA agree to support the project financially, staff recommends any financial support take the form of a forgivable loan, which would be modeled after the City’s now-defunct “Streetscape Fund” guidelines. This forgivable loan could be made to either NCG, Holdings, LLC (the Landlord) or the Chamber of Commerce (the primary tenant). The Chamber of Commerce will hold the lease for the property.
Staff is seeking direction from EDA board members on how to proceed with this request.
Options:
The EDA Board has the following options:
1) Approve a forgivable loan to NCG Holdings, LLC to assist with sidewalk correction costs, contingent on proof of project costs.
2) Approve a forgivable loan to the Chamber of Commerce to assist with sidewalk correction costs, contingent on proof of project costs.
3) Decline the request made by NCG Holdings, LLC.
Recommendation:
Staff recommends approval of EDA financial support for sidewalk corrections needed in order to make the Co-Location facility of the Economic Development Partners (19 Bridge Square) wheelchair accessible.