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98-128�, 9� _ 3 j L} � q� Council File #�a� d ( � ORIGINAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines : RESOLVED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Councii of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it INSERT HERE: FURTHER RESOLVED, that the Mayor and City Council hereby formally express their gratitude to the members of the Neighborhood STAR Board for their efforts and commitment to the STAR program and the City of Saint Paul. FURTHER RESOLVED, that the Council of the City of Saint Paul also incorporates and 2C10ptS 3S D2Tt Oi tt1E PT'oeT'am C�iiirlt?linac_ tha writtan nrnnnenlc nffa.-o.7 h.r I'.,,,,,.,�1...� Harr and Planning & Economic Development: � Adopted by Council: Date [�I�__� ,� �� Q Adoption Certified by Council Secretary: 3y �p Y Green Sheet # �� RESOLUTtON CtTY OF SAINT PAUL, MINNESOTA B ��°_`_'�_?�]�'��- `' Jr G �_ ff._i i! Form ppr ved i Attorney: By: 9�-1�.8` �n� cFi JJ1�.J V �A,�EM�� DATEI ITIAT D GREEN SHEE �� INRIAVDATE INRIAVDATE CONTACTPERSON&PHONE mDEPARTMENTDIRECTOR CMCOUNCIL µ�'� �'3 RSSIGN f�CRVATipRNEY CITYCLERK NUMBEN FOfl ��d� MUST BE ON COUNCIL AGE DA BY ( ATE) pOUTING O BUDGET DIRECTO FIN. & MGT. SERVICES Diq. a �$ q$ OROER MAYOR (OR ASSISTANT7 �� TOTAL # OF SIGNATURE PAGES _.�_ (CLIP ALL LOCATIONS FOR SIGNATURE) ACTIONRE�UESTED: �PPR��V OF 1�9g NFa�+F�� ` ' �' ` �Rc��µ C�u.co�U�� pECOMMENDA710NS: Approve (A) or Reject (R) PEflSONAL SERVICE CONTRACTS MUS7 ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE CAMMISSION �� Has this person/firm ever worked under a contrac[ for this depattment? _ CIB COMMIT'fEE _ VES NO — S7AFF 2. Has ihis personHirm ever been a ciry employee? — YES NO _ DIS7RIC7 COUFi7 _ 3. Does this personrtrm possess a skill not normally possessetl by any curcent ctty employee? SUPPOFiTS WHICH CqUNCIL O&IECTIVE? YES NO Explain all yes e�nswars on seperate sheet and ettaeh to green sheet INITIATING PAOBLEM, ISSUE, OPPOFTUNITY (Who, Whet, When, Where, Why)� �PTe'2 �MPt,ehlENt?N6 'f�lE ��Ifo�fBoR{iao� `�t�AcR PR��►w� t� 19q�, �f� 5�ra. go�an -rr�sNt��p o� Nuw�s�- �� coMwt�oE'D Gb1��5 �'T� PRoI'oRArM. �Tk1E5� RSCO'wiwfc�DATtoiuS �.��, � Re�t�tEUx� CiY ?� M�`loR, c�rY �7'�cFF� AND NKM�uS Cow�.�tuW� � oRfbl�izAc'Ro1.�S� '�- �fLE INU-c,if�C-"D i� 'r't!�' R�1 S�p ADVANTAGESIFAPPROVE�: �"� Qctc�tutwt w�u. gE N�o0.�E PRO-Ae�c7u� ��F R.�P�NSwS ,.� �� Np,�OS oF Tf{� P�R'r�GtPAT7TS DISADVANTAGES IF APPROVED: '°�` �„�D�C/ — DISA�VANTAGES IF NOTAPPROVED TFF�i PRpfoKJt�l WlLL lJOT IrIOUFi �F�RWARO l.t�lTN "t'FlE ��jq$ �?gj{t440 ��'cle rotxlDEL1uES, TOTAL AMOUNT OF TRANSAC710N $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVI7Y NUMBER FINANCIAL MFORhfATION' (EXPLFIN) L� . � Council Member Hazris March 4, 1998 � Y`t�e y� v`C� e r.�S STAR Proposal To maintain the competitive chazacter of the program, to provide some flexibility within the STAR program and to continue to encourage long-term, strategic investment in our community, ihe following is proposed: Maintain existing annual cycles for the Neighborhood STAR Grant J L,oan Program and the STAR Small Grant Program. 2. Dedicate 100% of annual STAR Smal] Grant and STAR Neighborhood Cnant revenues to existing annual competitive processes. 3. Dedicate 75% of STAR Neighborhood Loan revenues to existing annual competitive processes. 4. Dedicate 25°l0 of Neighborhood 5TAR Loan revenues to a special fund that can be accessed year-round by appiicants with the following conditions: The applicant must demonstrate a de�nite need to forgo tne annual STAR process (i.e. there is a time constraint); The loan must be approved by the STAR Board and the City Council; and Any remaining balance in this fund will be allocated by the City Council as part of the neighborhood STAR annual cycle. ��-ra� � SAINTRAUI STAR VAOGftAM �� 1 1� �� i f' � �� • � �� . - Applications for STAR LOANS will be accepted at any time throughout the year. ��, �- Elimination of pre-application process. All completed proposals will be considered for funding �- STAR LOANS less than $Sa,000 will nat require a 1:1 match. � ?..� - Seed Capital Fund to be eliminated, making new program allocation goals: 60% laans and 40°lo grants. �- Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. �- Under the Revolving Loan Program, recourse will be to the end borrower. 1lPED 1415YS\S{{p�DUGH1STAftPROP. W PD � oR��NAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines E� RESO�VED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Gouncil of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it FURTHER RESOLVED, that the Mayor and City Council hereby formaNy express their gratitude to the members of the Neighborhood STAR Soard for their efforts and commitment to the STAR program and the City of Saint Paul. � Funnt�k 2Esau��p, �iaf t�ic L��"`�� fs� rucar�ura�s a�u�2�fs t�o ��f v� � Pra ��'�'��, �� P,� �t� i�� a�d a;r� ...1.1_ Adopted by Council: Date Adoption Certified by Council Secretary: �y Approved by Mayor: Date � �Y�� 1 ��' ag a� dCouncil File # +� � �� s� Green Sheet # �� RESOLUTION CtTY OF SAINT PAUL, MINNESOTA h'�u1i �,1998'1 Planning & Economic Development: : rJ �� B _ �� -�-- Form , ppr ved �)Ci � Attorney: By: � DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pumela Wheelocl5 Direclor CTTY OF SAINT PAUL Norm Coteman, Mayar DATE: February I1, 1998 TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmember Fiarris Councilmember Lantry Councilmember Reiter 25 West Faurth Sheet Sainr Pau[, MN SS102 FROM: Pamela Wheelock, Directo� Deparhnent of Planning and Economic Development SUBJECT: STAR Neighborhood Program - Cycle 4 ��'�f Telephone: 612db6-6900 Faaimile: 612-228-3220 In the first three cycles of the Neighborhood STAR program over $12 miliion doilars has been awarded in loans and grants, leveraging more than $43 million in additional activity. Nearly $600,000 has been awarded for 39 Nei�hborhood Small Grants. Loan repayments meanwhile in 1997 were approximately $160,000 and an estimated $500,000 is expected in 199$. During each year of the first three cycles, changes have been made to the guidelines, in an attempt to make the program more responsive, e�cient, and user friendly. This year is no excep6on and the STAR Board is recommending several changes to the guidelines to facilitate awarding the funds to neighborhood arganizations and smaii businesses more quickiy. These recommendarions are in response to concerns they have heard during the previous cycles. They, too, are vitally interested in being more responsive to the citizens and businesses. The Board's recommendations have been endorsed by the Mayor, staff who work with applicants, and other interested parties. I strongly encourage you not to delay in adopting these recommendations so groups can begin to make applications for these funds. We consistenfly hear from neighborhood development organizations that it is important that they haue predictability as to funding streams. It is not only important to speed up the process but also to keep the cycle going so they can move forward with their plans and projects. It is PED's desire to utilize STAR and other sources to develop thoughtful, sirategic projects in partnership with neighborhood organizations; these changes allow us to do a better job at that. � Foilowing is a short stimmary and reasoning for each of the guidelines changes the STAR Board is recommendiug. Staff agree with the Board that these changes would enable the Board and ° _ staff to be more responsive to applicants. APPLICATIONS FflR STAR LOANS WII,L BE ACCEPTED ANY TIlYLE THI2OUGHOUT THE YEAR. The STAR Boazd feels that it is often difficult or impossible for small businesses or neighborhoad organizations to anticipate their needs a year in advance. They are, therefore, recommending that applications be accepted at ANY time during the yeaz. They aze willing to convene as needed to review applications for recommendation to the City Council. A number of organi�ations have found themselves in a position of having marketed a program, built up enthusiasm in the communiry, only to find that they do not have enough funds to meet ail of the need. In other cases, opportunities come up which cannot wait up to 18 months depending on STAR program consideration and approval. It is also difficult to work around Minnesota's short construction season. This proposed change in the process would also allow groups to reapply during the year if the Board does not recommend a project, and, that group's circumstances change. ELIMINATION OF PRE-APPLICATION PROCESS. ALL COPVIPLETED PROPO5ALS WILL BE CONSIDERED FOR FUNDING. The purpose of this recommendation is again to speed up the application process and to reduce the amount of paperwork applicants are to submit. STAR LOANS LESS THAN $50,000 WILL NOT REQUIRE A 1:1 MATCH. The requirement far a match for loans less than $SQ,OQO again would mean less paperwork for the borrower. This match requirement often puts the City in a less advantageous position as a lender. It is particularly burdensome for those small fix-up loans. A minimusn match of one ($1) private dollar far every one ($1) STAR doliar received as a grant as well as ANY loan over $SO,OQO would still be required. County, private, state and federal funds can be used as a match. Priority will be given to projects matched with private funds. Matching funds are to be direcfly related to completing the project ar program in the applicant's proposal. Direct financial resources as weli as indirect contributions can be inciuded. The value of sweat equity and/or volunteer labor can be used for up to 30°/a of the total match. SEED CAPTTAL FUND TO BE ELIMINATED, PYIAKING NEW PROGRAM ALLOCATION GOALS: 60% LOANS AND 40°ta GRANTS. The Board has learned from the previous cycles that the seed capital fund was difficult to use in tlus pragram. They have also heard from appiieants that addirional grant money would be welcome; thus, the recommendation for a 60% loanl 40% grant split. �t��r LOANS �100,000 OR LE5S RECEIVING APPROVAL OF THE STAR BQARD MAY BE APPROVED BY THE DII2ECTOR OF PED. Again, this recommendation as to speed up the process and is consistent with other programs. Tnnely reports would be submitted to the City Council, reporting on all loans approved. UNDER TAE REVOLVING LOAN PROGRAM, RECOURSE WII�L BE TO TFIE END BORROWER. The current guidelines require that the revolving loan operator own the loans and recourse is to the entity operating the program. The STAR Boazd is recommending that recourse be with tha end-borrower. ��,� The attached material is for your review for the February 18th policy session on the STAR Neighborhood Program - Cycie 4. A. List3ng of STAR Board Recommendations B. Neighbarhood STAFt �oard Member List C. STAR Fact Sheet D. Draft STAR Guidelines E.. Resolution accepting STAR Guidelines. F. 1997 Annual Report G. Resolution Accepting 1997 Annual Report 1�PEDW^YS24SHAREDIOTTOLSTARMEMO.WPD .,, . ; NEIGHBURHOOD SALES TAX REVITALIZATION (STAR) PRCJGRAM STAR GUIDELINES S�AINT PAUL STA R P R4G RAM �� Revised February 25 9998 Strikeout version Additional copies of STAR Guidelines can be obtained from the Department of Pianning and Economic Development, 25 West Fourth 5treet, Saint Paul, Minnesota 55102, or call 266-STAR (266-7827). 98'-iz� STAR Draft Guidelines TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives 11. 1998 Expectations iil. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies PART 2 - Eligibility I. Eligible Applicants ii. Ineligible Applicants III. Eligible Areas IV, Eligible Activities V. ineligible Activities PART 3 - Application Procedure I. Decision Process I1. Proposal Identification and Development ill. Procedural Guidelines IV. Application Contents PART 4 - Project Selection I. The Neighborhood STAR Board II. Selection Process 111. Evaluation of Applications IV. Speciai Consideration February 25, 1998 Page 1 Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 10 Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 PART 5- Loans, Grants,-Seed-�a�itaF and Leverage Requirements 1. Amount of Funds Allowed Per Proposaf and Criteria for Small Grants Page 18 11. Leverage Requirements Page 19 III. Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 STAR Draft Guidelines Page iii February 25, 1998 9d' /2 8 STAR Draft Guidelines V. Project Development and Implementation PART 6- Review and Evaluation I. Project Evaluation 11. Annua{ Report to the City Council and Mayor III. Annuaf Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS February 25, 1998 Page 26 Page 28 Page 28 Page 28 Page 28 Page 30 For STAR guidalines or applications call 266-STAft {7827). For other information, call STAR Staff.� Sob Hammer {266-6693), Jill Hughes (266-6650) or Paut Mordorski (266-6683). STAR Draft Guidelines Page iv Fe6ruary 25, 1998 f � r ♦ STAR Draft Guidelines PART 1 - Program Description * Program Purpose and Objectives * 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * General Policies February 25, 1998 1. Program Purpose and Objectives Saint Paui neighborhoods are one of the City's most important strengths, and the sales tax proceeds represent an extraordinary opportunity to revitalize and invest in our neighborhoods. The sales tax proceeds, one of the City's most flexible funding sources, are io be ailocated through the STAR Program for capital economic and community development projects in Saint Paul neighborhoods. These very flexible City funds should promote sign�cant and positive long term economic impact. STAR funds should leverage private improvement efforts and investments and should be used when projects are ineligible for use of other available City resources. Desired Outcomes: The Neighborhood STAR Program funds capital projects that: A. Economic development: 1. enhance the commercial and industrial tax base 2. create family supporting jobs 3. improve andtor stabilize local businesses and provide attractive and economically viable neighbarhood commerciai areas 4. reuse land foliowing poilution clean up B. Community development: 1. improve andlor stabilize housing stock andlor increase market value 2, provide new housing that meets an identified need in the market 3. improve public infrastructure and private green space especially if the projects are linked to related residential or commercial improvements STAR Draft Guidelines Page 1 February 25, 1998 9�' -ia 8' STAR Draft Guidelines February 25, 1998 il. Mayor and City Council Expectations for STAR Proposals The Neighbarhood STAR Board is more likely to recommend funding for Projects and Programs that: 1. Increase or maintain the tax base as a primary benefit. 2. Are high quality, market driven and enhance neighborhood stability. 3. Are part of a City approved plan or initiative, and are targeted to address identified unmet needs. 4. Are the resuit of collaboration and partnership with appropriate stakehoiders. 5. Are part of a broad based and integrated approach to improving neighborhoods that results in larger and fewer pro}ects. 6. Address through a citywide program, needs that affect more than one neighborhood. 7. Include participation by private lenders, or a clear indication that private fender participation is not possibie or appropriate. &. Request Gity funds so the percentage of city funds in the project is the least amount with the best terms so as to maximize leverage of other resources. 111. Strategic Use of Funds Sales tax funds are a very important resource for St. Paul neighborhood improvement, particularly since state and federal funding is declining. It is critical that the City be strategic in allocating these funds to achieve the greatest impact. Applicants should consider the following: The STAR Program is an effort to fund capital prajecfs that could not be done through existing City programs, and p�ograms that fiil gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants should consider contracting with others to provide technical services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. • Appiicants should look for opportunities to implement existing neighborhood plans and strategies, such as smatl area p(ans, or to propose improvements in conjunction with other City-pianned improvements, such as residentiai street paving. • Community organizations are encouraged to plan for community STAR Dreft Guidelines Page 2 February 25, 1998 98-/28 STAR Draft Guidelines February 25, 1998 development over a period of several years so that, increasingly, STAR project funding can be guided by strategic priorities for successfui long- term improvement. tV. Performance-Based incentives The STAR Program is designed with incentives to reward successful projectslprograms. Key features include interest rates that are lower than market rates and pnncipal and interest repayments that are deferred for fhe firsf year. incentives are based on the type of STAR project or program. Loan Incentives for Projects 1. Rebate on loans: A rebate of up to 10% of the principai portion of the City loan repayment amount as an incentive for repayment of the City loan provided all payments are made on time. Rebates will be credited as additional loan principal.: 2. Interest earnings: Loans are deferred for 1 year from the date of the agreement with the City. This, for example, allows revolving loan operators (RLO's) who begin to make sub-borrower loans immediately, to benefit by receiving payments from sub-borrowers for up to a year before the first city-loan payment is due. 3. Other Revolving Loan Program (RLP} Incentives: a. Origination fee - Revolving Loan Operators (RLO) may coilect from the sub-borrower, a loan ciosing fee of $200 or 1%% of the principal amount of the loan, whichever is greater. This fee also covers any potential coliection costs. b. Rate differentiat - Revolving Loan Operators may request a loan from the STAR Program at a certain rate (example 5%) and propose to make loans to sub-borrowers at a higher rate (example 8%). The RLO may keep the difference in interest rates. c. Grants used for loan programs: Revolving Loan Operators may receive a grant from the STAR Program to be used to operate a low interest loan program. The loan repayments wifl be heid in an interest bearing account. The principal must continue to be used to fund the revolving loan program. The RLO keeps the interest. V. Program Funding A. Fifty (50%) percent of the proceeds of the half-cent sales tax, along with its corresponding interest earnings, are dedicated to investment in the neighborhoods (including the downtown residentiai neighborhood and small businesses serving that residential population) of Saint Paul. STAR Draft Guidelines Page 3 February 25, 1998 98-/z F� STAR Draft Guidelines February 25, 1998 B. Each program cycle wiil be announced in December with an estimate of available tunds. The estimated funds wiii be noted in the annuai City budget as Neighborhood STAR program funds. A. AI{ocations 1. Siz�y {60%) percent of the neighborhood portion of sales tax proceeds shall be allocafed to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and will build a Iong-ferm, growth fund source for the future. 2. F� (40°l0) percent of the availabie funds shaii be aliocated to directyrants. seeel-eap+tslfi�- VI. General Policies Proposals must 6e neighborhood-based projects designed with neighborhoad representation to strengthen Saint Paul neighborhoods and address perceived and actual problems, needs and opportunities. Proposafs can be a project, program, or strategy that resuits in capital improvements in Saint Paul. These proposais may be generated by neighborhood and civic leaders, organizations, and businesses. Innovative proposals are encouraged. (See Page 6, 1., I1., lll.} A. In allocating tunding for projects, it is the intent of the City to provide geographic equity ot projects and doilars, over time. B. Up to 15°l0 of annual STAR funds may be used for muiti year funding to accommodate larger, long term -projects. C. The same or similar proposal cannot be submitted to the CIB Committee or the Cultural District organization in the same year. D. For loans exceeding $50,000 and ALL grants, sales tax funds shaii be matched with other resources on at least a 1:1 basis. Loan requests under $50,000 submitted directly to the STAR Board do not require a match. E. Projects considered to be of insu�cient quality or impact will not be recommended fior funding, even if funds are available. F. In the event that Community Development Block Grants (CDBG) funds are added to the STAR Program, areas of the city that are generally considered eligibie for CDBG funds, should receive their fair share of CDBG funds as well as their fair share of STAR funds. STAR Draft Guidelines Page 4 February 25, 1998 i i . STAR Draft Guidelines PART 2 - Eligibility � Eligible Applicants * Ineligihle Appiicants * Eligible Areas * Eligible Activities * Ineligible Activities February 25, 1995 I. Eligible Applicants A. Any public, private, or non-profit entities, which are located within or do business within the cifij ofi St. Paui, except as identified in 11. below. B. City departments and quasi-governmental entities are eligible when in partnership with or supported by an established and experienced neighborhood group. C. Individual businesses are eligible to apply for $50,000 or more in STAR funds, provided the business is: 1. opening up a business in St. Paul; or, 2. expanding the space occupied; or, 3. creating new jobs. (Programs serving individual businesses for smaller projects are also eligibie.) II. Inetigible Applicants A. Churches and religious organizations. B. Political parties and political action groups. C. Federal, state, and county agencies and departments. D. Individual homeowners. (However, programs serving individuai homeowners wiil be efigibfe.) E. Individual businesses for proposals under $50,000. 111. Eligible Areas A. All areas within the legai limits of the Gity of Saint Paul. IV. Eligible ACtivitieS include any physical components of strategies, programs, andlor projects which strengthen andlor improve the neighborhoods of Saint Paul. Capital improvements have an expected life of seven or more years. STAR Draft Guidelines Page 5 February 25, 1998 9� �2 t STAR Draft Guidelines February 25, 1998 Some examples of efigibie activities are: A. improvements to residentiat, commercial and industriai property such as rehabilitation, construction or other capital improvements. Exampies include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, piumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. 2. The project must be in compliance with all legal requirements of the City, such as: a. The property must he appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. d. Prior to project implementation, ali necessary permits must be obtained. Upon compietion of improvements, the applicant must have foliawed, and the property must meet, all applicable code, permit and license requirements. Finaily, the property must be properiy inspected and must have a current Certificate of Occupancy upon compietion, if applicable. e. An applicant must have the ability to repay if requesting a Ioan and be an acceptabie credit risk as determined by a bank or the City. (See underwriting standards). f. Funds will be refeased on a reimbursement basis upon receipt of documentation of eligible expenses. g. Little Davis-Bacon regulations (labor standards) must be followed as applicable. B. Economic development efforts such as new housing, business development or expansion, or parking development. The foilowing are eligible only when undertake� as initial steps of a larger STAR capital project that includes substantiaf rehabilitatian or construction: 1. Acquisition costs including purchase options; 2. Demolition costs; 3. Utility relocation and construction as it relates to a project; 4. Clearance: acquisition of land or a building for clearance wiil only be undertaken when it is an initial step in a proposal which will result in a capital project; 5. Pollution testing and soil remediation as part of a larger capital project. STAR Draft Guidelines Page 6 February 25, � 998 q 8 �Z � STAR Draft Guidelines February 25, 1998 6. Costs of developing parking facilifies are eligible activities. {f the parking is to be private(y owned, the STAR investment must be in the form of a loan, secured by a lien on the property. C. Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative lighting, etc. particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as weli as aesthetics. 2. The Program is not intended or normaliy sufificient to do major public improvements such as street paving, curb and gutter, sewer and water. Major pubfic improvements shouid be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvements, the STAR proposal must identify how this project area witi privately pay fior these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaliy-binding and enforceable plan for maintenance andlor operation over the usefut lite of the improvements proposed to be funded through the STAR program. The most acceptable method for maintenance and operation of above-standard public improvements is assessments on the property taxes of ihose receiving the benefit from the improvements, though proposals that commit private or non-profit organizations to operate and maintain above-standard public improvements will be considered, depending upon (at the City's judgement) the viability ofi the organization and the enforceability of the legal agreement. D. Direct project costs specifically pertain to the execution of the capital project. A minimum of 8U°lo of STAR funds must be spent on hard construction costs for physical improvements. Definition: Direct project costs are those which are necessary to carry out capital project construction to completion. Examples are dependent on the type of projecUprogram being implemented and may include: 1. building permits; 2. professional design, engineering, soil testing, environmental, legal, financing, licensing and inspection fees; 3. general contractor's charges (must be in line with indusiry standards); 4. developer's fee or project coordination fee that is appropriate to the projeet and in line with industry standards; 5. direct costs of staff management that are cleariy associated with STAR Draft Guideli�es Page 7 February 25, 1998 '% � STAR Draft Guidelines February 25, 1998 the completion of a capital project. persons receiving the benefit ot the project/program are not eligible fior developer's fee. (Example: a business owner rehabilifating his/her business site.) V. Ineligible Activities A. Any activity not of a capital (bricks and mortar) nature. B. Planning or study activities. C. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be included in your total project descriptionfstrategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. E. Refinancing existing debts, except when it results in business expansion, job creation, or is part of a larger project. F. Non-fixed improvements (Example; o�ce equipment, computers, fumiture, te%phone systems). G. Working capital. H. General administrative expenses inciuding staff management, pianning, development and administrative costs and general maintenance costs. Costs accrued before final approval of the application, are not eligible for sales tax funding. J. Activities located outside the city limits. K. Major public improvement projects, i.e., street repaving, sewer work, recreation center, etc. L. Sweat equity - payment for the applicant's own labor and performance for construction or improvements. M. Projects within the Saint Paul Cultural District, as long as the Culturai portion of the sales tax is targeting that district. STAR Draft Guideiines Page 8 February 25, 1998 . , r: , STAR Draft Guidelines February 25, 1998 N. Duplication of a current City program such as the Houses to Homes Program, or the Water Utility's Lead Pipe Replacement Program. Applicants are encouraged to coordinate or /ink proposed projects with existing programs. PART 3 - Appiication Procedure * Decision Process * Praposal Identification and Development * Procedural Guidelines � Application Contents Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications foryrants are due approximately four to six weeks after Orientation Worksho� C. Review of SmaN STAR Grant final applications by STAR Board, foilowed by Gity Council approvai. D. STAR Board, Planning Commission, CIB Committee, and staff review of final applications for large loans and grants. E. Recommendations for funding submitted to Mayor. F. Final approvai of funding by City Councii. G. Commitment letters with specific requirements and time line for actions to be completed sent to those approved for funding. H. Contracts negotiated assuming stipulations and time lines have been met. NOTE: The annuai time line will be announced at the beginning of each funding cycle. 11. Proposal Identification and Qevelopment The STAR program encourages up front strategic thinking and planning at aii leveis and community coilaboration prior to the submission of applications. The goai is to improve the quality of the appiications qualitatively and technicaliy. Earty and active participation of Councii, community groups, interested individuais and staff is expected in development of proposals. A. COMMUNITY GROUPS AND INDIVIDUALS INTERESTED IN STAR FUNDING - Initiate program and project proposals addressing important neighborhood and community issues. Indicate levef of community STAR Draft Guidelines Page 9 February 25, 1998 9� �2 8 STAR Draft Guidelines February 25, 1998 support. Provide prioritiaed letters ofi recommendation rather than blanket recommendations for ali proposals within community boundaries or service area. 6. CITY STAFF - Provide tecnnical assistance tp applicants, 'rf requested, to help assure a complete and strong application_ Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other funding sources as a tool in accomplishing the City's goals. 111. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycie. B. City staff wiil make availabie for interested parties copies of the appiications tor comment and review. C. City staff wiil organize a Small Grant Program workshop at the beginning of each cycie to provide program application information to prospective applicants. Attendance at the orientation workshop is strongiy recommended. D. Applications may not be changed or modified once submitted. It is the appiicant's responsibility to thoroughly develop the proposal before submission. However, appiicants may be asked to provide additional information to the STAR Board in the course of its review, or applicants may be asked to consider a modified proposal as suggested by the STAR Board during its decision-making process. IV. Application Contents - Large Loans and Grants All appiications must be submitted on the STAR application form and contain the following information, including but not limited to: A. A description of the proposai, inciuding: 1. Neighborhood probiems or needs that the proposat addresses. 2. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or efements. 4. Neighborhood impact and projected results. B. Level of �eighborhood support and participation. 1. One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be pi'iOntiZed. exampfe: If an organization sends letters of supporf for 5 proposa/s, fhey must indreate ist chorce, 2nd, ete. STAR Draft Guidelines Page 10 February 25, 199$ 9� /z� STAR Draft Guidelines February 25, 199& 2. Description of neighborhood participation used in proposal development. C. ApplicanYs management experience and capability, inciuding past experience with similar programs. A board membership list must be provided, if applicable. D. Requested amount and type(s) of Sales Tax funding (grant, loan). Terms must meet the STAR program guidelines and goais. E. Fulty devetoped budget inctuding: 1, Construction estimates. 2. Level and source of private commitment. 3. Sources and uses statement for ali project funds. 4. Ali required financial information such as: a project proforma, sources of private lender financing, three years of financial data, including annual balance sheets, operating statements, and/or tax returns; and other information as required. F. Time line for project that is specific and lists milestones. G. Map indicating project location and street boundaries. H, For proposed programs, either complete program guidelines must be attached, or, at minimum, questions such as the following must be answered on the finai appiication: 1. How will you choose who will receive loan/grant? 2. Do you have a loan or grant committee, and what is its structure? (Example: number, types of expertise) 3. Wili there be a mortgage on the property or a"due on sale" requirement? 4. Will there be a residency requirement? 5. What will be your underwriting criteria? Other questions as appropriate may be added to the application form. If the proposal is funded, the guidelines must be approved as part of the contract with the City. Confliet-of-interest policy of entity. Evidence of site control at the time of appiication. Evidence the applicant has {egal authority to carry out the project on the property. K. For proposais that would remove property from the tax rolis, a description of a proposed PILOT (payment in lieu of taxes) that will replace the lost property tax revenue. STAR Draft Guidelines Page 11 February 25, 1998 9�-iz� STAR Draft Guidelines February 25, 1998 L. If above-standard public improvements are proposed for funding, a description of the legally binding and enforceable plan for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a description of how they will measured. N. Application fee: A non-refundabie application fee of $100 must accompany application forms. A fee of $50 will be charged for the Small STAR Grant Program. O. Appiications which are incompfete after the due date wiil be returned to the applicant. Applications must be f� completed. Appiications that are incomplete wiil be ineligible for further consideration. If a proposal is incomplete or does not appear to be sufficiently developed to allow for reasonable review, the STAR Board may return the proposal to the applicant. The Board may suggest that, provided further development work is completed, the proposal may be re-submitted. Applicants should form coalitions if capacity to implement a project is limited. Contract responsibilities for joint applica�ts must be spelled out in the STAR contract, following funding approval. PART 4 - Project Selection * Neighborhood STAR Board * Selection Process * Evaluation of Applications * Criteria for Special Consideration 1. The Neighborhood Sales Tax Revita(ization (STAR) Board is appointed by the Mayor and approved by the City Gouncil. The 15 member board setves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. II. SeleCt1011 P1'OCeSS - the selection process for grants will be competitive and the Board wi(1 consider the quality of the proposals. The number of applicants to be funded is dependent on the size and quality of the proposals and the availability of fiunding. STAR DraR Guidelines Page 12 February 25, 1995 i i � . STAR Draft Guidelines February 25, 199$ A. Applications, upon submission, may be reviewed and summarized by staff. Applications wili: 1. Se accepted for review by the STAR Board. An estimate of City staff project management costs will be added to the proposal. Additional information will be provided to the Board by the folfowing: a. The PED Credit Committee will review the loan applications for fiscal responsibility, risk evaluation and appropriateness of interest rates, terms and conditions, and provide this information to the STAR Board to assist them in making recommendations to the Mayor and Gity Council. b. The Planning Commission will review proposals for compliance with the City's Comprehensive Pian and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informationai purposes to aitow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. if other entities want to review and make comments on applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board aciion. The applications, excluding financial attachments, wilf be available for review in centrai locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. -OR- 2. Be rejected by the STAR Board: a. Applications that are incomplete after the due date will be ineligible for further consideration. b. Applications that are regarded as premature or insufficiently developed will be returned to the appficant. B. The STAR Board will strive to identify the best possible proposa{s within the context of the STAR Program guidelines. C. The STAR Board will also consider CIB Committee and Planning Commission comments, and credit committee guidance, and make STAR Draft Guidelines Page 13 February 25, 1998 � i .� STAR Draft Guidelines February 25, 1998 funding recommendafions to the Mayor and City Council. D. The Mayor will review the recommendations of the S7AR Board, CIB Committee and Planning Commission comments, and forward his recommendations to the City Council. E. The City Council will review the Mayor's recommendations and, by resolution, make final selections of STAR project proposals and approve their budgets. III. EValUatlon of AppIICBtIOnS: Proposals will be reviewed for the following eligibility and additional selection criteria. A. Proposal supports City Council priorities for the use of the Neighborhood Sales Tax proceeds. B. Proposal meets the minimum leveraging ratio. (See "Leverage", Part 5.11) C. Proposal is an eligible program activity. (See "Eligible and Ineligible Activities" sections - Part 2.IV and � D. Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small area plan, capital allocation policy or adopted City ordinances and policies. F. Proposal is financially feasible. Requested STAR funds together with other project resources are adequate to complete the proposed project. G. Managing organization has the capability to successfully manage and implement the project or program. H. Proposal effectively addresses a previously identified or otherwise clearly documented neighborhood need or goal. Proposal was developed with sufficient neighborhood/community input, and is neighborhood based. STAR Draft Guidelines Page 14 February 25, 1998 9�-i2 8 STAR Draft Guidelines February 25, 1998 IV. Special Consideration: Proposals may receive more favorable consideration during the selection process if: A. Pcoposal has the following: 1. a positive impact o� tax base; 2. a positive impact on neighborhood businesses; 3. a positive impact on residential neighborhoods; and/or, 4. a positive impact on job creation (State law requires accountability fior public funds spent on job-creation projects). Note: To avoid double-counting ofjob creation, please take the total number of jobs, figure in all public monies, and pro-rate the number of jobs based on the percentage of STAR doflars in ihe project. B. Proposai is part of a well-defined, broad strategy for neighborhood development or maintenance. G. Activities are su�ciently concentrated within an identified geographic area to result in a high visual or economic impact. D. Su�cient pianning or feasibility analysis indicates a high probability of success. E. Neighborhood support is documented—an appropriate mix of residents, property owners andior business people relevant to the project were included in the planning, development and implementation of the proposal. F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. G. Proposal leverages additional funds or resources which exceed the required match. H. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. Proposal is recommended in a District Council Plan, the City's Comprehensive Plan, in an adopted small area plan, or through another similar neighborhood planning process. K. Proposal is in reaction to, or anticipation of, some City action. Examples: STAR praft Guidelines Page 15 February 25, 1998 � � • , � STAR Draft Guidelines February 25, 1998 a condemnation for eminent domain, widening of a street, or other public improvements. PART 5- Loans, Grants, and Leverage Requirements * Amount of Funds Allowed Per Proposal and Criteria fior Small Grants * Leverage Requirements � * Operating a Revolving Loan Program (RLP) * Loan Standards * Project Development and Implementation I. Amount of Funds Allowed Per Proposai and Criteria for Small Grants A. Regular STAR Program 1. There are no maximum loanigrant request amounts for the regular STAR program. 2. The minimum for the regular program is greater than $20,000. Individuai business requests must be for $50,00� or more. (See 2.I.0 for more details.) Request for funds of $20,000 or less will go to the Small STAR Grant program. B. Small STAR Grant Program - requests for amounts of $20,000 or less wifl be in the form of a grant. The application and selection process wiil be reduced. Funding approval may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Smali STAR Grant Program is $20,000. 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a projecYs selection and approval, a standardized contract will be signed witn the Cifij. it. Leverage Requirements A. A minimum match of one ($1) private dollar for every one ($1) STAR doliar is required for loans that exceed $50,000.00 and all grants. B. County, Private, State and Federal funds can be used as a match, C. Priority will be given to projects matched with private funds. City funds, such as CDBG, TIF, CIB, and HRA funds cannot be used as a match, unless the City funds are loans. City loan funds which will be repaid are considered an eligible match and forgivable City loan are not eligible. STAR Draft Guidelines Page 16 February 25, 1998 9� /Z� STAR Draft Guidelines February 25. 1998 D. Applicants are encouraged to finance STAR direct project management expenses with outside private resources, i.e., fioundation grants, cash donations, etc. and to use these funds as part of the match. Staff administration and marketing of the STAR projecUprogram must be funded with non-STAR dollars, and may be used as a match. General operating funds of the organization are not an eligible match. E. Matching funds must be directly related to comp{eting the project or program in the applicant's proposai. F. Eligible Matching contributions may include: 1. Direct financial resources such as private expenditures for commercial or residential physical improvements, contributions or funds raised from within the neighborhood, foundation and corporate grants, and local lender commitments or operating assessments estimated over the useful lifie of the improvements. 2. Indirect contributions can incfude: in-kind services from residents and businesses such as personnel, professional services, office space, project supplies, volu�teer labor, and sweat equity for physical improvements. The value of sweat equity and/or volunteer labor may not exceed 30% of the total match. G. Ineligible matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR applicants such as already existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. (Higher sweat equity matches wiil be considered for the Smail Grant program.) 4. General operating expenses. 5. Any donation not directly related to the STAR projec� 6. Any forgivable loans and Gity GDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9, Any improvements made prior to submission of the final application. H. Operating Assessments: If STAR capital funding is to be matched by the operating assessment, no funding can be disbursed until final ratification of the matching operating assessment. Under no circumstances will any match be reimbursed with STAR funds. STAR Draft Guidelines Page 17 February 25, 1998 9� /a� STAR Draft Guidelines February 25, 1995 J. The STAR Board may, at their discretion, recommend approval of other matching contributions on a case-by-case basis. K. Exceptions to the match requirement will be considered by the STAR Board in highly unusual cases, such as when a proposal is in response to an urgent need or disaster. L. When interim financing is used, the grant portion of the project will be considered matched when private funds replace the loan amount. For example: rehab of a house costs $90,000; appraised value after rehab equals $60,000; resufting in a subsidy of $30,000. The STAR program provides a grant of $30,000, and interim construction financing of $60,0�0. Private mortgage dollars of $60,000 are repaid to the STAR program upon sale of property, and is considered a match to the $3�,0�� grant. �n= _ -- :: ---- -- --- -- - --- - - -- --- - -- ---- -- - - - -- - - =-- ------ -- - -- -- - ---- --- -- - - - - - - -- - --- - uttii=i i '_ "': ' ' "' _ _ ' " _ ':: ' ' ' ' "'_' "" '"" ' "" ' " i _ " '_ ' " ' " ' "'" " " "' ��iti%tG�if:Nnr��u:�:.�in�iGnr.��m�iya:niiti��indrii%�ic�nir:.�i��eJ.uG�ai�i m�:: ' _ IV. Operating a Revolving Loan Program (RLP) Revolving Loan Program: Applications may be made to the STAR program for funds to operate a revolving loan program that allows the STAR funds to be recycled for 3 or more years from the date of the contract with the city. 1. The City and the STAR loan recipient sign a contract authorizing the recipient to operate a revolvfng loan program. 2. The STAR loan recipient—the Revolving Loan Operator (RLO)—makes capital improvement loans to sub-borrowers. 3. Description of terms: All sub-borrower loan payments may be sent to a servicing agency hired by the City. The payments are STAR Draft Guidelines Page 18 February 25, 1998 9�l-�2 � STAR Draft Guidelines February 25,1998 held in an interest bearing account reserved for the RLO. The principal, which must be used for capital improvements, is available to the RLO for additional sub-borzower loans. The interest may be used by the RLO as needed. EXAMPLE: a. Year 1: as with all loans, there is no charge of i�terest or principal to the RLO. b. Years 2 and 3: monthly interest and/or principal payments on the total STAR loan is paid to the City during the 2nd and 3rd year. Principal payments to the city may be deferred as agreed upon by the RLO and City staff. c. Year 4: principai and interest payments for the RLO's STAR loan are based on the amortization schedule for the entire STAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthiy basis from year 4 until the loan is repaid to the City. Applicants may request a longer period of time to revofve the STAR funds. The City will review the condition of the RLO's files, sub- borrower loans, and repayment history prior to approval of an additional term. 4. Risky loans: If a RLO desires to administer a loan program of moderate risk or a mix of high and low risk loans, an application should be considered for a STAR grant or a combination foan/grant to help the RLO mitigate the risk of non-payment. Both grant and loan fiunds can be loaned to sub-borrowers through the revolving loan program (RLPj. The grant funds may be used to provide a cushion against default of sub-borrowers. lf a RLO desires to administer a loan program where repayment ability of the borrower is highly questionable or doubtfuf then an application should be made for a STAR grant. V. LOail St811daPdS (The financial incentive to encourage repayment of STAR {oans are listed in Part 1, IV, on Page 2.) The goal of the STAR loan program is to earn 5°la interest over time. However, applicants may propose rates and terms that best suit their project. A. interest rates and terms will be proposed by applicants. Rates and terms may be modified after financial analysis of the applicanYs request by the PED Credit Committee. Results of that analysis are fonrvarded to the STAR Board, which makes recommendations fior City Council action. STAR Draft Guidelines Page 19 February 25, 1998 9� iz � STAR Draft Guidelines February 25, 1998 B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City will be listed on conditional mortgages and conditional guarantees to be signed by the sub-bo�rower and the RLO. This provides some protection for taxpayer dollars in the event that the RLO goes out of business. C. Default: a loan is in default when mote than 10% of the amount due to the City is delinquent. 1. On projects: the following action will be taken: a. City staff works with the borrower on a correction plan or a work-out plan for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process and collection of the borrower's STAR loan. c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: (1) collection endeavors; (2) workout plans; (3) foreclosure procedures 3. Other remedies for default andior poor performance: a. The entity must demonstrate how the conditions that led to the default have been remedied: staff training, staff experience, cofiaboration with more experienced lender, etc. b. The entity may be disqualified from participating in the STAR program. D, City origination and servicing fees 1. Individual payments for single projects and all payments for revolving loan program (RLP) loans will be processed through the City. Sub-borrower loans initiated through revolving loan programs will be originated and closed by the Revolving Loan Program operator (RLO). 2. Servicing fees. a. Loans and grants originated through the City (programs or single projects) will be charged a closing fee equal to 1'/z% of the STAR amount, before any disbursements. STAR Draft Guidelines Page 20 February 25, 1998 9� iZ� STAR Draft Guidelines February 25, 1998 b. The City's servicing agency will charge a fee per loan payment. c. A charge of 5% of the monthfy payment may be assessed on late payments over 15 days delinquent. d. If another party assumes the mortgage, a 1%z% assumption fiee on the outstanding balance wili be charged (assumption will occur infrequently and must be approved by the City). G. Loan loss percentage: 1. STAR Program portFolio: In order to address loan needs which can not be met through standard financial institution lending programs, the STAR Program is allowed up to a 20% loss rate. The City's risk rating system will be used to help assure that the program operates within this range. 2. Loan loss percentage - Revolving Loan Programs: Revolving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principal payments. H. Risk rating: All loans will be risk-rated, utilizing basic fundamentals of sound credit. These fundamentals include: an evaluation of the borrower's overall capital position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvallservicing. Additionally, considerable weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The following categories are used to assign a risk rating: Risk Ratinq # °lo Loss ACCEPTABLE (1} 5% SUBSTANDARD (3) 10% , DOUBTFUt (4) 50% LOSS (5) 100% A portfolio rating no lower than a Substandard rating is necessary to maintain the 20% {oan loss fevel allowed by the STAR program. Since nonrecourse Ioans would drop the loan loss level below the 20% requirement, these loans are not appropriate for the STAR loan program. !n most instances, organizations looking for a nonrecourse loan should apply to the grant program. Because it is not possible to determine the specific quality of individual loans that will be made from a revolving loan program, certa+n standards STAR Draft Guidelines Page 21 February 25, 1998 , , STAR Dreft Guidelines February 25, 1998 for the program must be set to obtain a particular risk rating. Groups that can develop thorough underwriting standards will receive a better risk rating. All Loan Program (RLP) final applications should be accompanied by detailed and quantifiable underwriting standards. Vl. Project Development and Implementation A. Upon selection by the City Council, the STAR project applicant will: 1. Receive a letter of commitment which specifies a period of time during which the applicant must refine its project or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved appiicant wili have 6 months from the date of City Council approval to enter in to a City STAR agreement. Failure to execute an agreement will result in a cancellation of the City commitment. B. Implementation of the contract. The contract will be entered into between the City of St. Paul and the selected applicant and must contain: 1. A Scope of Services to be performed by all parties; 2. A private match section; 3. A budget seetion outlining all funding sources; 4. An implementation time line; 5. Appropriate liability insurance which insures the City of St. Paul; 6. Conflict-of-interest statements; and 7. Adherence to Federal, State and Local regulations as applicable. Policies pertaining to the use of funds such as prevailing wage standards, relocation requirements, a�rmative action, targeted vendor programs, the First Source program and state corporate welfare requirements. The nature of the project (i.e, residential vs. commercial) determines which regulations appiy. 8. Staff will hold a compliance meeting prior to implementation of the contract to idenfrfy regulations applicable to project activity. The contract will be signed in accordance with City policy. STAR applicants are cautioned not to make any financial commitments until they fully understand potential compliance and funding regufations. STAR Draft Guidelines Page 22 February 25, 1998 i r i i STAR Draft Guidelines February 25,1998 C. Sales Tax Fund distribution 1. Sales Tax Fund allocations will be provided on a reimbursement basis. Fina1 payment will be made upon completion of the project and receipt of the final project report and evafuation. At the time of completion ofi all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be returned to the STAR Fund. 2. If a program, such as a revolving loan fund, is established by the applicant using grant dollars, repayments accrue to the applicant for reuse in the program for which the grant was approved. 3. !f a revolving program is established by an applicant using loan dollars, the loan must be repaid in full. Any excess funds accrue to the applicanYs account and the program operator is responsible for handling delinquencies of loans they have originated. 4. As an incentive for fiscal responsibility, a percentage of the principal portion of City loan repayments 10% will be credited to the borrower annually. The remaining 90% is returned to the City's Sales Tax Fund for reinvestment in capital projects. D. Progress: Projects are expected to be completed within a maximum two- year time ftame as approved by the City Council. Proposals are selected based on certain criteria and may not be significantly changed during project implementation. PART 6- Review and Evaluation * Project Evaluation * Annual Report to the City Council and Mayor * Annual Review of Priorities * Audits and Quality Control I. Project Evaluation A. Status reports will be generated for each project, which will provide an ongoing monitoring process. The report will include project expenditures, status of match commitments, and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and report on individual projects for progress and comp{iance with contract. B. A final evaluation of each project will be required to determine the e�ttent to which the project has been successful. Project success will be STAR Drafl Guidelines Page 23 February 25, 1998 1� /28' STAR Draft Guidelines February 25, 1998 measured against expected project outcomes and the overall objectives of the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to the City Council and Mayor An annual STAR report should be presented each year and shoufd inc(ude: A. Progress report on all projects to date, their locat+ons, and costs. B. Fiscal analysis of overall program. C. Effectiveness in supporting priorities. D. Evaluation of the program process and suggested revisions. III. Annual Review of Priorities Priorities for the use of sales tax funds in our neighborhoods should be reviewed on an annual basis. STAR Board and City Staff shall conduct a review and forward any comments and recommendations to all interested parties. IV. Audits and Quality Control A. The City will establish a monitoring and control system which ensures that loan repayments are made under the terms of each project's agreements. 1. It will be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibility and ongoing program compliance. 2. Reports on revolving loan programs will be periodically provided to the funded entities to assist in their monitoring of their programs finances. B. Periodic external audits may be required. STAR Draft Guidelines Page 24 February 25, 1998 9�-iz � STAR Draft Guidelines February 25, 1998 APPENDIX: ACRONYMS AND DEFlNITIONS Acronyms CDBG Community Development Block Grant, a Federal grant to cities for community development activities that provide assistance primarily to low- and moderate- income persons. CIB Capital lmprovement Budget, the City's biannual budget for capital improvements. HOME Federal funds that assist development of low income housing. HRA Housing and Redevelopment Authority, the legal entity that undertakes redevelopment activities on behalf of the City (members are the City Council). PED Planning and Economic Development Dept., a department of City government, which administers the STAR program. RLO Revolving loan operator, an entity that operates a revolving loan program. RLP Revolving loan program, a program that gives out loans for housing or business improvements and uses loan repayments to make new loans. STAR Sales Tax Revitalization Program. TIF Tax increment financing, a mechanism whereby the City can capture the increased taxes generated by new development to help pay the costs (such as infrastructure improvements or soil clean-up) �ecessary for that development to occur. Definitions Administrative expenses - Costs for staff, office space, supplies, etc. necessary to run an organization. Adverse lending relationship - An entity or person has an adverse lending relationship with the Gity if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. A�rmative action - A City policy that requires a plan for recruitment of minority STAR Draft Guidelines Page 25 February 25, 1998 48 �ZS� STAR Draft Guidelines employees and the use of minority-owned businesses. February 25, 1998 Allocation goals - The percentages established by the STAR program for a specific distribution of STAR funds to loans, grants, small grants, and seed capital loans. Amortization schedule - A schedule for paying back a loan through installment payments. Annual report - The report that is done once a year on the Neighborhood STAR Program. Applicant - An entity applying for a loan and/or grant from the STAR program. Audit - An examination of an organization's records or accounts to ensure they are in compliance with financial and program standards. Borrower - A person or entity that takes out a loan. Capital improvement - A physical improvement of property that increases its value. Certificate of occupancy - A certificate issued by the City that indicates that a building has met all City requirements for legal occupancy of a specific use. City comprehensive plan - The set of plans and policies adopted by the City Gouncil to guide the growth and development of the City, including recommendations addressing areas such as land use, economic development, transportation, parks, and housing. Collateral - Property that can be assigned as security to ensure recovery of a loan, should a borrower default. Commitment letter - A letter informing an applicant of the City's intention to award STAR funds to an entity, subject to meeting certain stipulations and/or standards, and the signing of a contract with the City for use of the funds. Compliance meeting - A meeting held between City staff and entities that have been awarded STAR funds to discuss City requirements that must be met as a condition of City funding. Contract - A legal agreement between the City and the recipient of STAR funds, specifying the requirements that must be met in order for the recipient to receive STAR funds, including a scope of work. Credit Committee - A committee of staff from the Department of Planning and STAR Draft Guidelines Page 26 February 25, 1998 9�-�2 8 STAR Draft Guidelines February 25, 1998 Economic Development that reviews financial analyses of proposed loans and grants. The Credit Committee financiaf and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. Credit risk - An analysis of the probability that a loan will be repaid. Cultural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to projects that benefit the downtown cultural district). Deferred loan - A loan where repayment is delayed until some future time. For example, interest and principal on all STAR loans are deferred for one year from the date of the contract with the City. District council plan - An adopted plan for o�e of the City's seventeen planning districts; considered part of the City's Comprehensive Plan. Eminent domain - The authority of a government to take, or authorize the taking of, private property for public use. Entity - An organization that has been legally organized and established through the State of Minnesota (such as a company, non-profit organization, district council, etc.). Final evaluation - An evaluation required whenever a STAR funded project is completed to determine how successful the project has been. An evaluation form will be provided by the City. First Source - A City program that requires certain companies that have received City economic development assistance to work with PED to place St. Paul residents in new jobs created as a result of the assistance. Forgivable loan - A loan for which repayment is not required (becomes a grant) if certain conditions are met. Funding cycle - The STAR Program is on an annual funding cycle, which means that applications are accepted and funds are awarded once each year. Grant - An award of funds for a project or program which does not have to be paid back to the STAR Program. Grantee - An entity that has been awarded a STAR grant. Job creation - Refers to jobs that are pledged to be created as a result of the award of STAft funds. STAR Draft Guidelines Page 27 February 25, 1998 98 �2 � STAR Draft Guidelines February 25, 1998 Leasehold improvements - Improvements to properry held by a lease. Leverage - Money or other resources committed to a project as a result of the receipt of STAR funds. Little Davis-Bacon - City requirements related to paying prevailing wage rates for work on a City-funded project. Living wage - A level of wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money will be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss (non-repayment) for STAR loans awarded to operate revolving loan programs. Loan origination fee - A processing fee that is charged to the borrower by the entity making the loan. Match - Money or other resources that are pledged to a STAFt project or program along with STAR funds. The STAR Program requires a minimum $1 for $1 match of other resources with STAR funds. Minnesota Business Assistance (Corporate welfare) - Laws approved by the Minnesota State Legislature that require cities to document job creation that occurs as a result of the award of public economic development assistance funds. Neighborhood fund - The fund that holds the sales tax proceeds designated for distribution through the Neighborhood STAR Program. Neighborhood STAR Board - A board of St. Paul residents, appointed by the Mayor and City Counci(, that reviews applications and makes funding recommendations for the award of Neighborhood STAR funds. Neighborhood STAR Program - The City program that awards loans and grants for neighborhood improvement projects, which is funded with 50% of the proceeds of the City's half-cent sales tax. Operating assessment - An extra fee charged by the City to property owners to pay for the maintenance and operation of public improvements that are considered above the standard that has been established for the City as a whole. PILOT (Payment in lieu of taxes) - An agreement to make a payment of some type to the City for a specified period of time when a property will be removed from the tax rolls. STAR DraR Guidelines Page 28 February 25, 1998 9� �28� STAR Draft Guidelines February 25, 1998 Planning Commission - A standing City commission of St. Paul residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. Prevai{ing wage standard - A schedu{e of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a program, through which funds are passed through an organization to an end user, either as a loan or grant, using criteria defined by the organization and approved by the City. Project - A one-time capital improvement to a particular property. Project management - The activity of overseeing the development and completion of a funded project or program. Project proforma - A realistic projection of income and expenses for a typical year of operation, and a balance sheet that reflects the post-loan closing conditions. Proposal - A STAR application for a project or program. Recourse loan - A loan whereby the borrower is held financially fiable to repay the loan, according to agreed upon terms and conditions. Reimbursement - Payment from the City to a STAR-funded organization for capital improvement costs incurred for completion of a STAR-funded project or program. Relocation requirement - State and Local requirements related to paying the relocation costs of residents or businesses moved as a result of a City-funded projecUprogram. Revolving loan program - A program established with STAR funds, that makes loans to homeowners or businesses for physical improvements. Loan repayments are used to make new loans for the same purpose. Risk rating - An estimate of the likelihood that a loan will be repaid, based on an analysis of the applicant's repayment capacity, capital position (equity), and the City's collateral position and conditions of loan approval. Scope of services - A budget, time line, and description of the activities that will be pertormed in the implementation of a STAR-funded project or program. STAR Draft Guidelines Page 29 February 25, 1998 9� i2 �' STAR Draft Guidelines February 25, 1998 - - - .�iz_.i��.: Small area plan - A plan for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds available through the Neighborhood STAR Program that are set aside to be awarded in small grants of $5000 to $2o,0�0, using a streamlined application and selection process. Sources and uses of funds - A listing of where aIl the money that will be spent on a project is coming from, which must equal the listing of all the uses the money for the project will be put to. Status reports - Periodic reports made to the City on the progress of S7AR-funded projects or programs. Sub-accounting system - An accounting system set up to track second-tier loans and grants made by organizations to homeowners or businesses through a program funded with STAR funds. Sweat equity - Work that a property owner performs to complete a capital improvement on his/her own property. The value of this work may be used as a partial match for STAR funds. Underwriting standards - Credit requirements (including financial ratios) that must be met before a loan can be approved. Standards provide support for sound credit administration and provide guidance for objective and consistent credit decisions based on sound credit analysis, appropriate controls and loan conditions, proper assessment and management of risk, and appropriate and timely loan servicing. Vendor Outreach Program - A program established by the City to ensure that a certain percentage of goods and services purchased by the City or by City-funded entities is purchased from small, minority-owned or women-owned businesses. STAR Draft Guidelines Page 30 February 25, 1998 � ;� INTER-DEPARTMENTAL MEMORANDUM DATE: March 4, 1998 TO; Council President Bostrom and Counci�members , � r, .Y FROM: Marcia Moermond, Poliry Analyst %�✓ , �;�'�'� � , City of Saint Paul City Council Research Cer�ter Room 310 City Hall Saint Paul, MN 55102 q � - j'�Q 612 266-8570 bw RE: Today's Agenda Item #18: Sales Tag Revitalization (STAR) Prograzn Proposed Guideline Amendments This memo reviews the policy changes adopted by the Council at its February 18 policy session, as well as the remaining proposed changes to the Neighborhood STAR program guidelines. OIJ'TSTANDING POLICY ISSUES: Applications for STAR loans be accepted at any time throughout the year. Page 9 of February 25 draft. See second page of Bob Hammer's memo on `STAR Financial Information" providing policy options for making application review a monthly or quarterly process. The Council acted in December of 1996 to set aside $550,000 to be used in 1997 and 1998 as a revolving loan and grant pool for applicants with tight deadlines who would benefit through quicker access to STAR funds. The $376,700 in allocations thus far are as follows: Right Step Acaclemy: $24,200 encumbered, loan agreement not closed. Home Styles (Home Co.J: $50,000 encumbered, loan agreement not closed. Sibley Plaza: $55,000 encumbered, loan agreement not closed, Old K-Man Project at Snelling � Energy Park Dr.: $225,000 loan and $22,500 grant allocated by Council, no encumbrances to date, loan agreement not closed. Seed Capitai Fund to be eliminated, making new program allocation goals: 60% loans and 4D% grants. Pages iii, 4, 16, 18 and 30 of February 25 draft. Annual Priorities Statement. Page 2 of February 25 draft. POLICY DIRECTIONS GIVEN: Elimination of pre-application process. All completed proposals will be considered for funding. Pages 10, 11, 14, IS, 16 and 34 of February 9 draft. The provision in the pre-appiication process pertaining to making applications available for community review has been moved into the regular application �� STAR loans less than $50,000 will not require a 1:1 match. Pages u, 5 and 19 of February 9 drafc. � . Pages u and 10 of February 9 draft. Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 25 of February 9 draft. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File 2 q�-la�' ! � NEIGHBORHOOD �ALES TA X REVITALIZATION (STAR) PROGRAM rth Street, Saint Paul, Minnesota 55102, or V � and Economic Development, 25 West Fo� caii 266-STAR (266-7827). � � � STAR Program Overview f� . � The Neighborhood Sales Tax Revitalization (STAR) Program awards grants and loans for physical improvement projects in Saint Paul neighborhoods. Key features include: * Program funding: 50 percent of the proceeds of sales tax. -cent * Applications for }oans may be submitte a any time. �� * Funds are awarded annually through a competitive app ication process for small and large grants, an'� wi(I�e ongoing for oans. '' STAR funds must be matched on a'f : basis w� other resources for loan amounts over $50,000 and all other loans an qrants. * STAR funds must be spent expected life of at least 7 rs. " Eligible applicants located in or doing * * * Small g with that have an � , or non-profit entity involvement and support will for loans and 40% for grants. number of small grants will be awarded (awards of )• un mg recommendations are made to the Mayor and City Councii or oans exceeding $100,000 and ALL grarrts, by the 15 member STAR Board appointed by the Mayor. Loans $100,000 and under may be approved by the Director of PED, upon STAR Board recommendation. STAR Dreft Guidelines Page ii 01 /29/98 • �� .� � � ►.._J TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives II. 1998 Expectations ill. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies � PART 2 - Eligibility I. Efigible Applicants 1f. Ineligible Applicants III. Eligible Areas IV. Eligible Activities V. Ineligible Activities PART 3 - Application I. Decision P If. Proposai lc III. Procedural IV. ,�,Applicatic� PART 4 I. II. I �1 • ; :.. . Page 1 ge 1 age 2 Page 3 Page 4 �age 5 �`"age 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 1 � Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 � 5- Loans, ants,-;��af and Leverage Requirements I. Am t of Funds Ailowed Per Proposal riteria for Small Grants Page 18 � verage Requirements Page 19 � , �# . Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 V. Project Development and Implementation Page 26 STAR Draft Guidelines Page iii Ot/29/98 q�-�a� C� r1 u � PART 6- Review and Evaluation I. Project Evafuation Ii. Annual Report to the City Council and Mayor III. Annuai Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS For STAR guidelines or appiications cal! 26&STAR (782�. For o er (266-6693), Jill Hughes (26&6650) or Paul Mordorski (26&-6`�3). STAR Draft Guidelines Page iv Page 28 Page 28 Page 28 Page 28 30 � a i Staff.� Bob �ammer d � ;;� Ot/29/98 q�- ia� i . PART 1 - Program Description * Program Purpose and Objectives '` 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * Gene�al Policies I. Program Purpose and Objectives Saint Paui neighborhoods are one of the C' m safes tax proceeds represent an e�raordin in our neighborhoods. The sales tax procee funding sources, are to be allocated throug economic and community development pr cts ii These very flexibie City funds should pr ._ sig economic impact. STAR funds sh�� E and investments and shouid b other available City resourc , Desired Outcomes: The Neighborhood S A. Economic de ,�.1. enha� tax base �bTiie local businesses and provide attractive viable neighborhood commercial areas �g pollution clean up 11. 1. rportant s the nity to revita invest the City's most flexibie rogram for capital _ I neighborhoods. ositive long term a ,, provement efforts s�a e ineligible for use of projects that: stabilize housing stock and(or increase market 2. p ide new housing that meets an identified need in the market 3. ' prove pubiic infrastructure and private green space especially if e projects are linked to related residential or commercial improvements r and City Council Expectations for STAR Proposals n:: _:�: � r rrvi7i7cs STAR Dreft Guidelines Page 1 p��yg�gg q�- ia� � IJT_'�!n!1/_T_T_� I�[-nlm�ni-nw "More likel�o Fund in 1998" ° Projects and programs that: � 1. increase or maintain the tax e as 2. are high quality, market dri and e 3. are part of a City approv `= lan or� identified unmet need '�" 4. are the result of col 5. are�nart of a bro� __ � _ -- - _ — �._o ...:.:.:......:.:�-.._.:_�...,i;,iLa " __ _ '• __ __ ' _ ___ _ i .�. " _ _ " _ • _ _ _ _ " ' _ _ _ ' �:i G.: a i� i a. � i n�� i� i�� o � 7. � rhood stability. are targeted to address with appropriate stakeholders. oach to improving in 1" Y�"d fewer projects. program, needs that affect more than one lenders, or a clear indication that private `°'�' "°` is n ssible or appropriate. Ci the percentage of city funds in the project is the least with rms so as to maximize leverage of other resources. Strategic e of Funds ales t ds are a very important resource for St. Paul neighborhood ent, particularly since state and federal funding is declining. It is critical e City be strategic in allocating these funds to achieve the greatest impact. Applicants shouid consider the foliowing: � • The STAR Program is an effort to fund capital projects that could not be done through existing City programs, and programs that fill gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations STAR Draft Guidelines Page 2 01/29198 �� .� u and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants shauid consider contracting with otfiers to provide technicai services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. � Applicants should look for opportunities to implement e neighborhood plans and strategies, such as small � propose improvements in conjunction wit other � improvements, such as residential stre ing. Community organizations are encour ed to pl r c development over a period of sever ars at, inc project funding can be guided by str rities for term improvement. IV. Pertormance-Based lncentives The STAR Program is designed with i� projects/programs. Key features i rates and pnncipal and interest r � me {ncentives are based on the tv of STR �� to rer� �f rafes or to e lower than market for the first year. � loans: "' `�"'"= te of up to 10% of the principal portion of the epayment amount as an incentive for repayment of �he Ci ided alI payments are made on time. Rebates will dit itional loan principal.: st ea � gs: Loans are deferred for 1 year from the date of ent with the City. This, for example, allows revoiving tors (RLO's) who begin to make sub-borrower loans m tely, to benefit by receiving payments from sub-borrowers to a year before the first city-loan payment is due. 1 �' u ,�j�'��ly��Fl\lf� \��f�1��1�\' _ • � •�� STAR Draft Guidetines Page 3 01 /29/98 i� . � � 3. Other Revofving toan Pronram (RLP) Incentives: a. Origination 4ee - Revolving Loan Operators (RLO) may collect from the sub-borrower, a ioan closing fee of $200 or 1'/z% of the principal amount of the loan, wfiichever is greater. This fee also covers any potential collect+on costs. b. Rate differential - Revolving Loan OQerators may request a loan from the STAR Program at a certain rate (example 5°!0) and propose to make loans to sub-borrowers a igher rate (example 8%). The RLO may keep t iffe e in interest rates. _ c. Grants used for loan pr s: Loan Operators may receive nt from ogram to � be used to operate a lo nterest pr e lo repayments will be hel an i st bearin �'he principal must continu ed to fund the g loan program. The RLO kee rest. l\ � L�� 1\ l� Yi il�l� l�l�� ly • � (50%} percent of the proceeds of the ha{f-cent sales tax, aiong with s corresponding interest earnings, are ded'+cated to investment in the neighborhoods (including the downtown residentia4 neighborhood and small businesses serving that residential population) of Saint Paul. � B. Available STAR funds for each funding cycle will include funds collected through June 30th, 1998. Succeeding cycies will include funds coAected from July 1 through June 30. Each cycle will be announced in December STAR Draft Guidelines Page 4 p��9/98 �� .� �J with an estimate of available funds. The estimated funds will be noted in the annual City budget as Neighborhood STAR program funds. C. Allocations 1. Sixty (60°10) percent of the neigfiborhood portion of sales tax proceeds shall be allocated to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and wiii buiid a{ong-term, growth fund source for the future. 2. Forty (40%) percent of fhe availabte funds shait be aUocafed to direct grants. j ,_.: �,: «_ � :. � �. � ... , . ,:., L� VI. and businesses. Innovative pi A. in allocating funding for geographic equity of p� General Policies Proposals must be neighborhood-based p representation to strengthen Saint Paul ne and actual problems, needs and opportun program, or strategy that results in capital proposals may be generated by neighbort B. Up to 15% of < accommodate C. � The sam �� heC D. or oans exc matc e with � F 'AR f�ds may ied with n d and address ceived Is can be a project, ' Saint Paul. These rs, organizations, age 6, I., II., III.) City to provide used for multi year funding to be submitted to the CIB Committee in the same year. ng $50 ,000 and ALL grants, saies tax funds shatl be �r resources on at least a 1:1 basis. :d to be of insufficient quaiity or impact will not be funding, even if funds are available. In the nt that Commun'ity Development Block Grants (CDBG) funds are a d to the STAR Program, areas of the city that are generaliy c ered eligible for CDBG funds, should receive their fair share of G funds as well as their fair share of STAR funds. PART 2 - Eligibility � * Eligible Applicants " Ineiigible Applicants * Eligible Areas STAR Draft Guidelines Page 5 pt/2g/g8 qg- � a� � * Eligible Activities � Ineligibie Activities t. II A. Any public, private, or non-profit entities, which are located within or do business within the city of St. Paul, except as identified in II. below. B. City departments and quasi-governmental entities are eligible hen in partnership with or supported by an established an xperi � d neighborhood group. Etigible Appiicants C. Individual businesses are eligibte to a funds, provided the business is: 1. opening up a business in St. I; or, 2. expanding the space occupie 3. creating new jobs. (Programs serving individual eligible.) Ineligibie Applicants A. Churches and religious � B. C. D. �� E. III. EI in STAR projects are also departments. rams serving individual proposals under $50,000. limits of the City of Saint Paul. IV Eliglble ACt include any physicai components of strategies, programs, and/or project hich strengthen and/or improve the neighborhoods of Saint Paul. Capit provements have an expected life of seven or more years. of eligible activities are: � Political parties and Federal, state, Individual elig ovements to residentiai, commercial and industrial property uch as rehabilitation, construction or other capital improvements. Examples include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. STAR Draft Guidehnes Page 6 01/29/98 q�- �a� � 2. The project must be in compliance with a41 legal requirements of the City, such as: � improvements. d. Prior to project implementation, all be obtained. Upon completi n of i applicant must have follo nd all applicable code, pe d lic Finally, the property m e prop have a current Certific f Oc a. The property must be appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the e. � applicable. � An applicant must have loan and be an � bank or the City. Funds will be rel receipt of docu tittle Davis- . followed a ool a elig ne sa rmits must m ts, the must meet, en nts. �� ins m ancy upo , if to repay if requesting a as determined by a dards). t basis upon > nses. �standards) must be B. Economic develo '�`nt eff such new housing, business development or ""sion,, . parkin velopment. The following are eligibie only w unde v, en a tial steps of a larger STAR -�`� capital pr ' at incl ntiai rehabilitation or '��-' flnstr - Ac sts including purchase options; emo ' ity rei d construction as it relates to a project; nce: isition of land or a building for clearance will only n aken when it is an initial step in a proposal which will N� C:� pital project; testing and soil remediation as part of a larger capital of developing parking facilities are eligible activities. If the g is to be privately owned, the STAR investment must be in the form of a loan, secured by a lien on the property. . Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative fighting, etc. � particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The Program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer STAR Dreft Guidelines Page 7 p��pg�gg i� ., � and water. Major public improvements should be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvemenfs, the STAR proposal must identify how this project area will privately pay for these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaily-binding and enforceable maintenance andior operation over the useful life � improvements proposed to be funded program. The most acceptable m thod operation of above-standard pub ' prc on the property taxes of those r iving 1 for and the improvements, though propos that co t pr n-pr x �' organizations to operate and ' tain ve-stan improvements will be conside nding upon (a 's judgement) the viability of the ' n and the enforceability of the legal agreement. � D. Direct project costs sp project. A minimum of construction costs for Definition: Direct out capitai project on the type of pr�i f� it7 of the capital m� r spent on hard e tho "" � are necessary to carry o comp ion. Examples are dependent being i�ilemented and may include: soil testing, environmental, legal, and inspection fees; � charges (must be in line with industry w_ �: per's " or project coordination fee that is appropriate to the d in line with industry standards; 5. of staff management that are clearly associated with th pletion of a capital project. 6. ons receiving the benefit of the projecUprogram are not igibie fo� developer's fee. (Examp/e: a business owner his/her business site.) h"cile Activities Any activity not of a capital (bricks and mortar) nature. � B. Planning or study activities. C. Use of STAR funds to develop a STAR proposal or to organize an entity to manage a STAR proposal. STAR Draft Guidelines Page 8 01/29/98 � �� .• r� LJ • E. F G. rrent City program such as the Houses to Homes Water Utility's Lead Pipe Replacement Program. are encouraged to coordinate or link proposed projects with � * * * D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. Refinancing existing debts, except when it results in job creation, or is part of a larger project. , Non-fixed improvements (Examp/e: fumiture, te/ephone systems). Working capital. H. General administrative expenses planning, development and admii maintenance costs. I. Costs accrued before 1 eligibie for sales tax fu J. Activities located out � K. Major public imp ��ei recreation cent ` tc. .�. L,��s�weat e ment ��:=;#R�;`'`� � =�„ _ : �tructi ver M. ithi the the management, and general are not repaving, sewer work, own labor and pertormance for t Paul Culturai District, as long as the sales tax is targeting that district. Application Procedure Decision Process Proposal Identification and Development Procedural Guidelines Application Contents STAR Draft Guidelines Page 9 Ot/29/98 �� . � � i. Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications #or grants are due approximately four to soc weeks after Orientation Workshop. C. D. E. F. G. � H. I. NOTE: T� Review of Small STAR Grant final a� by City Council approval. STAR Board, Planning Commission, final applications for large loans and Recommendations for funding subm Review by Mayor and City Council � and all grants. Final approval of funding Commitment letters be completed sen� Contracts followed all loan exceedi $100,000.00 and time line for actions to and time lines have been met. at the beginning of each funding cycle. I I. P ro`'�os� The ST lev is to im '- arly and a individuals A. COM �nti nd Development en s up front strategic thinking and planning at ali ' coli oration prior to the submission of applications. The ality of the applications qualitatively and technically. ipation of Councii, community groups, interested is expected in development of proposals. ITY GROUPS AND INDIVIDUALS INTERESTED IN STAR i- initiate program and project proposais addressing important iood and communiry issues. Indicate levei of comrrrunity Provide prioritized letters of recommendation rather than blanket for all proposals within community boundaries or service area. • B. CITY STAFF - Provide technical assistance to applicants, if requested, to help assure a complete and strong application. Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other STAR Draft Guidelines Page 10 o�iZy�98 �-�� 111. funding sources as a tool in accomplishing the City's goals. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycle. B. City staff will make availabie for interested parties copies of the applications for comment and review. C. City staff will organize a Small Grant Program work p e beginning of each cycle to provide program applica ' n infor prospective applicants. Attendance at the orientati rksh ly recommended. � D. Appiications may not be changed or applicanYs responsibility to thorough submission. However, applicants m information to the STAR Board in thi may be asked to consider a modifie� Board during its decision-makin ° nce submi � "` - �„ -. the proposal d to provide additional or applicants sd by the STAR IV. �pplication nts - Large Loans and Grants All applicatio must be submitted on the STAR application form and contain the fo ing information, including but not limited to: 3 A d iption of the proposal, including: Neighborhood problems or needs that the proposal addresses. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or elements. 4. Neighborhood impact and projected results. Level of neighborhood support and participation. STAR Dreft Guidelines Page 11 Ot/29/98 � , / • • � One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be p�iOfiU2@d. example: If an oiganization sends letters of suppo�t for 5 proposals, fhey must indicate lst choice, 2nd, etc. Description of neighbofiood participation used in proposal development. C. Applicant's management experience and capability, including past experience with similar programs. A board membership list t be provided, if applicable. D. Requested amount and type(s) of Sales fun , loan). Terms must meet the STAR program guid and g � � E. F. G. H. Fuliy developed budget inciuding 1. Construction estimates. 2. Level and source of private c 3. Sources and uses statement 4. All required financiai informa' sources of private lender fi _ including annual balan . . retums; and other i Time line for project Map indicating For p ^:fii:' boundaries. t proforma, financial data, ents, and/or tax rlete program guidelines must be such as the following must be ose who will receive loan/grant? or grant committee, and what is its structure? er, types of expertise) be mortgage on the properry or a"due on sale" 4. 5. be a residency requirement? be your underwriting criteria? iestions as appropriate may be added to the application form. If osal is funded, the guidelines must be approved as part of the with the Ciry. Conflict-of-interest policy of entity. � J. Evidence of site control at the time of application. Evidence the applicant has legal authority to carry out the project on the property. K. For proposals that would remove property from the tax rolls, a description STAR Draft Guidelines Page 12 o�iZ9iy8 I� _ � � of a proposed PILOT (payment in lieu of taxes) that wili replace the lost property tax revenue. L. if above-standard public improvements are proposed for funding, a description of the legally binding and enforceable pian for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a they will measured. N. Application fee: A non-refundable appli fe accompany application forms. A fee 0 wili be STAR Grant Program. ..��.:..�_.."'�' .=r"5":!n•:7 �� O. Appiications which are incomptete after the Applications must be f� completed. � ineligible for further consideration. be sufficiently developed to allow fo ' the proposal to the applicant. T development work is complete„ J E Applicant�hould fo PART . II. eighboi� `� Selection * Evaluatio * � :�__:_ � • - _. . the of how be retumed. : i�'omplete will be te or does not appear to STAR Board may return provided further � implement a project is limited. be spelled out in the STAR contract, of Applications Special Consideration = hborhood Sales Tax Revitalization (STAR) Board inted by the Mayor and approved by the City Councii. The 15 member board serves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. SeleCtion PrOCeSS - the selection process for grants will be competitive and the Board will consider the quality of the proposals. The number of applicants to may STAR Dreft Gwdelines Page 13 o��9i98 �, . • � l.J be funded is dependent on the size and quality of the proposais and the availability of funding. � � U :�_._.._.��=,a � A. Applications, upon staff. Applications� 1. Be accep�id staff proj `� n 3r� Add��nfi and summarized by by the AR Board. An estimate of City rt c_ wiil be added to the proposai. rovided to the Board by the a. � D Credit Committee will review the loan applications esponsibility, risk evaluation and appropriateness �= o tes, terms and conditions, and provide this info �'� n to the STAR Board to assist them in making ommendations to the Mayor and City Council. b- Planning Commission will review proposals for ompliance with the City's Comprehensive Plan and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informational purposes to aliow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. If other entities want to review and make comments on STAR Draft Guidelines Page 14 ovzsisa l� .! � applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board action. The applications, excluding financial attachments, will be available for review in central locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. 2. Be rejected by the STAR Board• a. Applications that are i plete date wi be ineligibie for furth onside on. w = b. Applications that are r ded remature � developed will be retur applicant. � _T_�f_nR_TJ_' _T_<T��TL' 1�](�I�l�l�l�t��l��l�ll�\ � j � STAR Draft Guidelines Page 15 ovzsisa /• • �^: ..,.......�,....:,��.,:.: __ ' _ ' __ _'" ____ ___ ' __ ', r_' B. The STAR Board will strive to ident the context of the STAR Program g C. The STAR Board will also consider Commission comments, and cre ' funding recommendations to � D. The Mayor will review t ec Committee and Plann' Cor recommendations _ e City,. E. The City C resolution, a eir bu� � tll. Eva c� of eligibili � Propo Sales T B. Proaos possible Planning and make e STAR Board, CIB , and forward his 's recommendations and, by AR project proposals and approve 3: Proposals will be reviewed for the foliowing criteria. City Council priorities for the use of the Neighborhood the minimum leveraging ratio. (See "Leverage", Part 5.11) is an eligible program activity. (See "Eligible and Ineligible sections - Part 2.IV and � . Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for � the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small STAR Draft Guidelines Page 16 01/29/98 • �� . � � • IV F G. .: 1 0 Special Consideration: Proposals consideration during the selecti � A. Proposal has the foilowing: 1. a positive impact on tax 2. a positive impact on 3. a positive impact side 4. a positive impac job c ti for public fun� pent o b-c area plan, capital allocation policy or adopted City ordinances and policies. Proposal is financially feasible_ Requested STAR funds together with other project resources are adequate to complete the proposed project. Managing organization has the capability to successfully manage and implement the project or program. Proposal effectively addresses a previous identif erwise clearly documented neighborhood need or go . Proposai was developed with and is neighborhood based. to Note: To avoid number of iQbs. more favorable �ds; and/or, requires accountability �-co ng of jo reation, please take the total in li ies, and pro-rate the number of :e AR dollars in the project. broad strategy for neighborhood C. � ci tiy concentrated within an identified geographic area visual or economic impact. or feasibility analysis indicates a high probability of N� orhood support is documented—an appropriate mix of residents, erty owners and/or business people relevant to the project were ncluded in the planning, development and implementation of the proposal. � F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. STAR Dreft Guidelines Page 17 o�izy�98 �� _! n u � U G H. J. Proposal is recommended in a District Council Comprehensive Pian, in an adopted smal are� similar neighborhood planning process. K. Proposal is in reaction to, or anticipa of, a condemnation for eminent domain en improvements. PART 5- Loans, Grants, Seed Requirements * Amoant of Funds ANowe Small Grant * Leverage * Operating a I * Loan Standa * P��iect De�� I. Proposal leverages additional funds or resources which exceed the required match. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. ►c� no � a (RLP) another Leverage for ic Per Proposal and Criteria for Small toan/grant request amounts for the regular mum for the regular program is greater than $20,000. vi ual business requests must be for $50,000 or more. (See C for more details.) Request for funds of $20,000 or less will to the Small STAR Grant program. � all STAR Grant Program - requests for amounts of $20,000 or less will be in the form of a grant. The application and selection process will be reduced. Funding approvai may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Small STAR Grant Program is $20,000. STAR Draft Guidelines Page 18 0'I /29l98 `j • � � 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a project's selection and approvai, a standardized contract will be signed with the City. I I A. A minimum match of one {$1) privafe doilar for every one {$1}�TAR doilar is required for loans that exceed $50,400.00 and all grants. Leverage Requirements B. County, Private, State and Federal fun be C. Priority will be given to projects matc with such as CDBG, TIF, CIB, and HRA f ca unless the City funds are loans. Ci considered an eligible match and forgi D. Applicants are encouraged to expenses with outside private donations, etc. and to use tl� � administration and marke ' � funded with non-STAR ars operating funds of t orga� E. Matching fu program in; F i.e., t management grants, cash �h. Staff e �rogram must be as a match. General an eligible match. to completing the project or may include: resources such as private expenditures for � idential physical improvements, contributions or within the neighborhood, foundation and and local lender commitments or operating nts estimated over the useful life of the improvements. 2. I ontributions can include: in-kind services from r s and businesses such as personnel, professional services, e space, project suppiies, volunteer labor, and sweat equity for ysical improvements. The value of sweat equity and/or volunteer may not exceed 30% of the total match. � � �ieligibie matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appiicants such as aiready existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. STAR Draft Guitlelines Page 19 ; be used � which will b id are loan are not eligible. Ot/29/98 ��a� � (Higher sweat equity matches will be considered for the Small Grant program.) 4. General operating expenses. 5. Any donation not direcUy related to the STAR project 6. Any forgivable loans and City CDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9. Any improvements made prior to application. H. Operating Assessments: If STAR operating assessment, no funding of the matching operating assessn Under no circumstances will any The STAR Board may, at their matching contributions on a cz � K. Exceptions to the match Board in highly unusual, an urgent need or disa�te L. When interim fin �is considered mat d whe �� exampie: r a �, n a hou� ��..,•..�.�H��. �,.-,.,.��..�.�.,. � with STAR funds. approval of other by the STAR I is in response to �', the gr t portion of the project will be vate s replace the loan amount. For ,000; appraised value after rehab sidy of $30,000. The STAR program and interim construction financing of dollars of $60,000 are repaid to the STAR rty, and is considered a match to the $30,000 � � STAR Draft Gwdelines Page 20 o�nsiea � � � � � l ��1�1�1��f��f��l�l��1�1��wl��l!t_l�l��l\�l�y��1�t�Y�(��'�/1�[�I�l�lf� � [��11�1��t��l�l�� ' • • • . • • _ _ _ " _ _ ' _ _ � _ _ _ _ � _ _ _ ' ' ' ' _ � � Revolving Loan Program: App{ic� program for funds to operate a revc STAR funds to be recycled for 3 or contract with the city. 1. The City and the STAR loan the recipient to operate a re� 2. The STAR loan recioient tF (RLO)—makes capital i 3. Description of term sent to a servicin ncy heid in an intere earin i principal, whic� ' ust b se to the RLO ' ditio sut used by t�� O a �eded 1: as pai to G! STAR Draft Guidelines . "� g 4 t�, • � ..�i'u.t�.r �- a contract authorizing r lo ayments may be . The payments are ed for the RLO. The if improvements, is available foans. Tfie in#erest may be there is no charge of interest or b. and 3: monthly interest and/or principal payments STAR foan is paid to the City during the 2nd and 3r rincipa{ payments to the city may be deferred as gree pon by the RLO and City staff. r 4: principal and interest payments for the RLO's STAR • n are based on the amortization schedule for the entire TAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthly basis firom year 4 until the ioan is repaid to the City. Applicants may request a longer period of time to revolve the STAR funds. The City will review the condition of the f2L0's files, sub- borrower loans, and repayment history prior to approval of an additional term. Risky loans: If a RLO desires to administer a loan psogram of moderate risk or a mix of high and low risk loans, an application Page 21 01/29198 q�- ia� � shouid be considered for a STAR grant or a combination Ioanlgrant to help the RLO mitigate the risk of non-payment. Both grant and foan funds can be loaned to sub-borrowers through the revolving loan program (RLP). The grant funds may be used to provide a cushion against default of sub-borrowers. If a RLO desires to administer a loan program where repaymen ability of the borrower is highly questionable or doubtF en an application should be made for a STAR gran�, ��_,�+.+�...� ��f�l�]-S-S�T �l�ll>\LS _ _ " _ _ _ _ _ _ a _ _ _ _ _ _ _ __ _ _ _ _ _ •. __'_' ' ' _ _' � '_ ' " __ '_ ___'" ' _'__ ' _ "'_ _' _ _ '" "'__ ' __ � '_ _ _ � STAR Draft Guidelines Page 22 ov29iy8 !f , � -- - ---- - -- - - --- - - -- - - � Loan Stan dS (The financial incentive to encourage repayment of STAR foans are lis in Part 1, IV, on Page 2.) he goal e STAR ioan program is to earn 5°lo interest over iime. However, may propose rates and terms that best suit their project. A. {nterest rates and terms wiA be proposed by applicants. Rates and � terms may be modified after financial analysis af the appiicanYs request by the PED Credit Committee. Results of that analys+s are foswarded to the STAR Board, which makes �ecommendations for City Council action. STAR Draft Guidelines Page 23 olnsrsa ��- �a� i B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City wi(I be listed on conditiona( morkgages and conditional guarantees to be signed by the sub-borrawer and the RLO. This provides some protection f xpayer dollars in the event that the Rt0 aoes�►ut of iness. . ia a.ii.�:i.��:rt��i�ia��d�s�a��i:1-�iw � �: a loan is in default when more than 10°l0 of the amount due to y is delinquent. On projects: the following action wifl be taken: a. City staff works with the borrower on a correction plan or a work-out pian for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process a�d collection of the borrower's STAR loan. STAR Draft Guidelines Page 24 Ot/29/98 r. _ � � c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: 3. � . (1) coliection endeavors; (2) workout pians; (3) foreclosure procedures Other remedies for default and/or poor Qe a. The entity must demonstrate how the the default have been remedied: sta# experience, callaborat+on b. The entity may be disqu program. from �that led to staff d lender, et �,in the ST/� D. City origination and servicing fees 1. Individual payments for single revoiving loan program (RLP) City. Sub-borrower loans init� will be originated and cio operator (RLO). 2. Servicing fees. a. Loans andx ants o ir single pr�cts) w e i of th R a nt, b b. Th _ s se ina aaE all payments for rocessed through the :d th • lving loan programs the Re � n Program the City (programs or >ing fee equal ta 1'/z% � any disbursements. will charge a fee per loan nonth�y payment may be assessed 15 days delinquent. d. er parry assumes the mortgage, a 1'/2°lo assumption outstanding balance will be charged (assumption w� requent{y and must be approved by the City). c. - gram portfoiio: fn order to address loan needs which c e met through standard financia( institution lending p grams, the STAR Program is alfowed up to a 20% loss rate. e City's risk rating system will be used to help assure that the rogram operates within this range. Loan toss percentage - Revolving Loan Programs: Revoiving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principa! payments. H. Risk rating: All loans witl be risk-rated, utilizing basic fundamentals of STAR Draft Guidelines Page 25 ov29iye /� _� � �� sound credit. These fiundamentals include: an evaluation of the borrower's overall capita! position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvai/servicing. Additionally, considerabie weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The foilowing categories are used to assign a risk rating: Risk Ratina ACCEPTABLE SUBSTANDARD DOU6TFUL LOSS � A portfolio rating no {ower than a� maintain the 20% ioan ioss levei a nonrecourse loans would drop the requirement, these loans are not a In most instances, organizatiot� shouid apply to the grant pso�,� Because # ( rating is nece � '°° o � STAR program. Since elow the 20% foan program. urse loan the specific quality of individual � foan program, certain standards be set to obtain a particular risk rating. Groups that �anderwriting standards wil{ receive a better risk �RLP) finai applications shouid be �iled and quantifiable underwriting sta�dards. by VI. � ct Dev nt and Implementation Upon s n by the City Council, the STAR project appiicant wifi: 1. eive a letter of commitment which specifies a period of time ring which the applicant must refine its projeet or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved applicant wili have 6 months from the date of City Council approval to enter in to a City STAf2 agreement. Failure to execute an agreement will result in a canceilation of the City commitment. STAR Dreft Guidelines Page 26 01/29/98 t� �, � � B. implementation of the contract 1"he contract will be entered into between the City of St. Paul and the se{ected applicant and must contain: 1. A Scope of Services to be performed by aif parties; C 2. A private match section; 3. A budget section outlining all funding sources; 4. An implementation time iine; 5. Appropriate Iiability insurance which insures the City 6. Conflict-of interest statements; and 7. Adherence to Federal, State and L cal reg Poficies pertaining to the use of f suc standards, relocation requirem , aifirma ' vendor programs, the First So e pi welfare requirements. The n of commercial) determines whic Staff wifl hold a compliance me , contract to identify regulations The contract will be signed in Sales 7ax F 1. Sa{es Paul; applicabie. ng wage s apply. - �, to impiementation of the �project activity. provided on a reimbursement d pay , made upan completion of the project of the ect report and evaluation. At the time of ail activities contained in the agreement or upon agreement, any remaining project fund balances he STAR Fund. 3. ogra � ch as a revolving loan fund, is established by the using grant doliars, repayments accrue to the applicant f the program for which the grant was approved. If ving program is established by an applicant using loan ars, the loan must be repaid in full. Any excess funds accrue to applicant's account and the program operator is responsible for andling delinquencies of loans they have originated. As an incentive for fiscal responsibifity, a percentage of the principal portion of City loan repayments 10°!o will be credited to the borrower annually. The remaining 90% is retumed to the City's Sales Tax Fund for reinvestment in capital projects. i D. Progress: Projects are expeeted to be compieted within a maximum two- year time frame as approved by the City Council. Proposals are setected STAR nraR Guitlelines Page 27 01/29/98 �i - � � � based on certain criteria and may not be significantly changed during project impiementation. PART 6- Review and Evatuation * Pra}ect Evaluation * Annual Report to the City Councii and Mayor * Annual Review of Priorities * Audits and Quality Control � I. Project Evaluation A. Status reports will be generated for ongoing monitoring process. The re� status of match commitments, and pr project outcomes (as identified in the for timefy adjustment of individual p wiN monitor and report on individual� with contract. 6. A final evaluation of to which the project measured against e� the STAR Progra finai reimburse {I. � to date, their locations, and costs. program. supporting priorities. � �T meeting e oted ition). This wil! allow ary. Project managers s and compliance o determine the extent ct success wiN be and the overall objectives of must be received before the f and Mayor �d each year and shouid include: of the program process and suggested revisions. eview of Priorities for the use of safes tax funds in our neighborhoods should be reviewed n annuai basis. STRR Board and City StafF shall conduct a review and forward any comments and recommendatians to ail interested parties. ! lV. Audits and Quatity Control A. The City will establish a monitoring and contro4 system which ensures that STAR Draft Guidelines Page 28 Ot/29/98 a�� a� i loan repayments are made under the terms of each projecYs agreements. 1. It wiil be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibifity and ongoing program compliance. 2. Reports on revoiving Ioan programs will be periodically provided to the funded entities to assist +n their monitoring of their programs finances. � �� L�J STAR Draft Guidelines Page 29 ov2sisa • j� .� n Acronyms APPENDIX: ACRONYMS AND DEFINITIONS CDBG Community Development Biock Grant, a Federai grant to cities for community devefopment activities that provide assistance primarily to low- an moderate- income persons. , CIB Capital Improvesnent Budget, the City's improvements. HOME Federal funds that assist development of HRA PED RLO � (2LP Housing and Redevelopment Authority, t redevelopment activities on behalf of the Planning and Economic Development which administers the STAR proqr Revolving loan operator, an Revolving loan business im�rc STAR Sales Tax - ... � that unde �� '�� are the City Councii). City government, loan program. �ans for housing or to make new loans. TIF ��"�: _ eme , a me �" '�m whereby the City can capture the "rr�� taxes �� ,, by new development to help pay the costs (such as �r� �;t� inf , y impr r soil clean-up) necessary for that development to oc "' _ - Costs for staff, o�ce space, suppiies, etc. necessary to run �,�i��, "° d� retationship - An entity or person has an adverse lending re ith the City if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. � Affirmative action - A City policy that requires a plan for recruitment of minority employees and the use of minority-owned businesses. STAR Draft Guidelines Page 30 Oti29i98 �, .. �� Ailocation goals - The percentages established by the STAR program for a specific distribution of STAR funds ta loans, grants, smafl grants, and seed capitaf loans. Amortization schedule - A schedule for payi�g back a loan fhrough instaflment payments. Annua4 report - 7he report that is done once a year on the Neighborhood STRR Program. Applicant - An entiiy appfying for a loan and/or grant Audit - An examination of an organization's record compliance with financial and program standards. Borrower - A person or entity that takes out a loa Capitai improvement - A physical improvement o Certificate of occupancy - A certificate issue E building has met all City reguirements tor I, � City comprehensive plan - The set lan to guide the growth and developme of the addressing areas such as land �cono� housing. Collaterai �roperty shouid ` er de Commitmey' � STAR funds t :� the signing Com 1s�ance meetinc aw d STAR funds C� nding. _ _ ct - A lea the are increases its value. City � ncv of �s that a use. by the City Council transportation, parks, and to ensure recovery of a loan, A le ' g an applicant of the City's intention to award ', sub� eting certain stipulations and/or standards, and ' h th for use of the funds. �g held between City staff and entities that have been City requirements that must be met as a condition of it between the City and the recipient of STAR funds, that must be met in order for the recipient to receive STAR a scope of work. Credit Committee - A committee of staff from the Department of Pianning and � Economic Development that reviews financial analyses of proposed foans and grants. The Credit Committee financial and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. STAR Draft Guidelines Page 31 p��g�gg ��a� � � Credit risk - An analysis of the probability that a loan will be repaid. Cuitural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to pro}eets that benefit the downtown culturaf district). Defe�red toan - A loan where repayment is delayed unti4 some future time. For exampfe, interest and principai on ail STAR ioans are defierred fior one ye m the date of the contract with the City. � District council plan - An adopted plan for one of districts; considered part of the City's Comprehensi Eminent domain - The authority of a private property for public use. Entity - An organization that has been IegaAy State of Minnesota (such as a company, non- Final evaluation - An evaluation compieted to determine how succ be provided by the City. First Source - A City program economic development assist< jobs created as a resuit of th Forgiva ` ; �' n - A I certain`��"" `"--� ` are Funding cyc TAR application nd Gran n award of to t_ TAR Proaram. ST i through the councif, etc.). �d project is evaluation form will that have received Ciry place St. Paui residents in new not required (becomes a grant) if � on an annuaf funding cycie, which means that are awarded once each year. project or program which does not have to be paid back - An entity t has been awarded a STAR grant. to jobs that are pledged to be created as a resuft of the award of Leasehoid improvements - Improvements to property heid by a lease. � Leverage - Money or other resources committed to a project as a resuft of the receipt of STAR funds. STAR Dreft Guidefines Page 32 01/29/98 , ♦ • • � � Little Davis-Bacon - City requicements refated to paying prevailing wage rates fior work on a City-funded project. Living wage - A ievel ofi wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money wifl be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss loans awarded to operate revolving loan programs. - Loan origination fee - A processing fee that is making the loan. Match - Money or other resources that are pledgE with STAR funds. The STAR Program requires a resources with STAR funds. Minnesota Business Assistance �Cor� Minnesota State Legis{ature that require a result of the award of public economi� Neighborhood fund - The fund distribution through the Neighbo Neighborhood STAR and City C�,�ncil, that award of,�e'i�iborhoo City's for fot STAR �� ': r � ,�� > ' ' -� � = -� " �� r� � - . . - . . � �-�E�� _ . . �. . . . - d by the that occurs as designated for dents, appointed by the Mayor funding recommendations for the City program that awards loans and grants for thich is funded with 50% of the proceeds of the �g assessm ra fee charged by the City to property owners to pay maintenance a ration of public improvements that are considered above ndard that has en established for the City as a whole. �u of taxes) - An agreement to make a payment of some type to period of time when a property wiii be removed from the tax rolls. � Plarfri` ommission - A standing City commission of St. Paui residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. STAR Dreft Guidelines Page 33 Q�/2g/gg `t� ` ��' � � Prevailing wage standard - A schedule of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a pro , t gh which funds are passed tfirough an organization to an end us r, eithe n or grant, using criteria defined by the organization and approv the Project - A one-time capital improvement to a Project management - The activity of funded project or program. Project proforma - A realistic projection of operation, and a balance sheet that reflects � . a ,g9x�t-� �• • _ a typical year of Proposal - A STAR appiication for a Recourse loan - A loan whereby loan, according to agreed upon� "" and the C' a liable to repay the Reimbursement - Payment improveme�t costs incur relocation�"" " �,. � project/progr" Revolv� oan pr to ho . " wners or' to , e new loans �-funded organization ior capital 'AR-funded project or program. nd Local requirements related to paying the � sses moved as a resuft of a City-funded �gram established with STAR funds, that makes loans r physicai improvements. Loan repayments are used purpose. ing - An es � ate of the likelihood that a loan will be repaid, based on an of the a anYs repayment capacity, capital position (equity), and the City's nd conditions of loan approvai. Scoj�c"f�services - A budget, time line, and description of the activities that will be performed in the impiementation of a STAR-funded project or program. � STAR �raR Guidelfnes Page 34 p�Mgigg ��- la� Smalt area p4an - A p{an for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds Neighborhood STAR Program that are set aside to b to $20,000, using a streamlined application and se1 Sources and uses of funds - A listing of where project is coming from, which must equal the list project will be put to. Status reports - Periodic reports made to tfie projects or programs. � Sub-accounting system - An a� � grants made by organizations to with STAR funds. Sweat equity - Work that a pr on his/her own property. Th STAR fund�, _ met befoi administr on sound and mar� � Outreach percentage is purchase . of of y that wi uses the STAR-funded md-tierloans and a program funded �o complete a capital improvement be used as a partial match for requirements (including financial ratios) that must be be Standards provide support for sound credit ide g r objective and consistent credit decisions based pro controls and loan conditions, proper assessment appropriate and timely loan servicing. �- A program established by the City to ensure that a is and services purchased by the City or by City-funded small, minority-owned or women-owned businesses. STAR Otaft Guidelines Page 35 ovzersa q� - �as Re: Feedback on the 1998 Star Board Recommendations February 18, 1998 The listing of six recommendations are more in line with the actual capacities of many communities and proposed projects. My concern lies with the chain of command of loans of $100,000 or less being approved by the Director of PED. Doesn`t the City Council currently have some control concerning the recommendations made by the STAR Board? Why would the balance that the City Council provides be eliminated and left to the discretion of the Director of PED? How is the Mayor involved in the selection process? Additional comments: Community feedback that I have gotten from my community is that there appears (rightfully or not) to be partisan politics at work in the selection process. Should a community be penalized because they are not as active and perhaps unable to pursue the funding that is available? Could better outreach and/or more targeted help be given to those neighborhoods who demonstrate a need for assistance? Neighborhoods often feel pitted against each other for the limited funding. Is there a way that grant and loan money could be equally distributed between all of the District Councils? If so, the amount could be allowed to carry over for use for not more than three years whereby it could then go back into the general pool for distribution. As it now stands, those communities most able to write the best proposals get the money. In the local communities, there is often competition for the limited monies available. It would also be helpful if all STAR proposals go through the District Council process so that the best overall proposals for each community could go forward. This method would be an asset in community building rather than fostering the current climate of competition. Is there a method for "borderline" projects so that those communities who share a border could share their monies as well? All loan packages should be forwarded with the input (and/or approval) of each District Council. Urilizing District Councils in this way would incorporate a broader community view, and again, warking in tandem with other community non-profit organizations helps build community. Are all current applicarions chosen only on merit? All loan packages should be based on sound business practices should reflect industry standards and math formulas that have no basis in race, gender, age, etc. When the package is biind, the most sound proposals will succeed. Submitted by Carol M. Neumann 694 Oakdale Avenue St. Paul, MN 55107 � i• .• OL`TLiNE OF STATEMENT OF PAUL GILLTLAND, CHAIR OF T_HE CAPSTAL IPfPkOV'EiiENT BUBGET CQMMTTTEE, TO THE ST. PAUL CI'LY COUNCI� POLICY SES3ION OI3 "5TAR". FEBRUARY 18, 1998 W�AT ISSUES MOST NEED TO BE ADDRESSED AS kiE SEEK TO IMPROVE 'tHE PROCESS FOR REVIEFf AND t3SE OF THF' PROCEEDS OF TI�E SALES TAX? 1. NEED TO FOLLOW "PYRAMID" FUNDING STRATEGY AND THRERF'ORE NEED TO WORK TOWARD A"UNZFZED" REVIEW PROCESS. Once a project is agreed upon, the most restrictive funding should always be used first, the 2east restrictive last. Blending of �unding sources maximizes the opportunity to complete a project as intended rather than be baund by regulations. The addition of the 5ales Tax as a funding source, with its minimal "strings" (capital projects) should enhance this mix of sources. To date, due to our own internal complication and zeal for regulation, STAR has nat reaiized this potential. Due to its sepa- rate process, there hes been little opportunity to view STAFt together with CIB and CDHG as part o£ a"pyramid" oi €und sources. 2. THE ISSUE IS NOT THE STAR BOARD OR THE FUIdDING SOL312CE IT'SELF, BUT PED "iNTERNALIZATIUN" OF FUIYDING ALLOCATTON I1V GENERAL. 5ome of what is perceived to be happening with STAR (too much PED control) has adready nappened with CD3G and HOI�E funds uncier a process called "Capitol City Development Program (CCDP)" Part of the uni£ication of a review process for housing and economic development funding invoives cztizen review and "opening up" (or elimination) of CCDP. tJniess this question is resolved before 3anuary of 1499, we will be facefl witke three tracks far neighborhood housing and economic development fun- ding; STAR, CCDP and the regular CIBjCDBG two-year cycie. 3. I3EED TO RETURN TO THE "STRATEGIC" GOAL OF STAR. One of the ironies of the STAR process is how quiclky the "stategic" emphasis has disappeared. 8everal projects which were clearly identi£ied in adop- ted neighborhood plans and strategies but were deemed as multi-year or possibly nat ready to proceed immediately were screened out in the pre-agp staqe. In addition, several projects could not proceed be- eause the grant portion was not funded, even though the laan partion was, pr the issue of loan recourse surfaced. This attests to the inflexibility and short-sightednass of the STAR process. 4. WHEN THE REVTEWJFUi3DIi�tG PROCE35 IS VERTICAL, CO23TR01:. IS CENTRALIZED. One of the main differences between the CIB and STAR review process is the relationship between departments, support staff and the citizen review body. STAR is entirely vertical, with PEII drafting the guidelies, staffing the committee, rating the projects, negotiating contracts, handiing reimbursements and then evaluating the programs. i�ith CIB, the Budyet Uffice staffs the pro�ess, while departments staff projects. Neighborhoods relate to both, but for dif£erent reasons. Tne separation of roles nas been a positive means af preventing centralized control and lack of citizen access. STATEMEIdT Or PAUL GILLILAND FEBRUARY 18, 1998 PA�E 2 5. AS LONG AS PED IS THE "SOURCE," LOANS WILL BE "PED" LOANS. Aside from the controversial issue o£ the ioan/grant mix is the question of the "use" of ioan tunds. Many neighbrohoods, through CDCs or other groups have the ability (and 'nands-on knowiedge oY community needs) to operate smail housing and commercial loan programs. Yet, because the intent of these projects is to generate revolving "loan" funds in the neighbrood, PED views the initial funding of them as "grants." Access to loan funds should be independent of PED control and neighborhoods should be allowed to operate loan programs using the loan portion of the sales tax program. 6. LOANS TO INDIVIDUAL BUSINESSES. The provision requiring indivi- dual businesses seeking loans or grants to partner with a comnunity group was quietly dropped two years ago. It should be reinstated. Sf sales tax funds are to be loaned or provided to an individual busi- ness, it shauld be done as part of a"stra£egy" and coordinated at some identi£ied 1eve1 with a CDC, District Council, business associa- tion or other more broadly-based organization. 7. SIMFLIFY - AT ALL LEVELS. The evolution of the forms and con- tracts used in the STAR program is truly a study in beauraaracy, The applicatian forms evolved from the former NPP program and are Zong and redundant. A cover-sheet, three page narrativs and budget page should suffice. In terms of contracts, the program started with model federal pragram contracts, which are among the most complex. 5implify. Drastically. 8. REVI5IT THE ISSUE OF PROJECT ADMZNISTRATION OR "50FT COS1S." 6btain an opinion from a group of outside attorneys and bond experts on the question of maximum al2owed costs associated with the capita2 activities. Then act on it and use it. ��- ia� Cfty of Saint Paul Cfty Council Research Center Room 31� City Hall Saint Paul, MN 55102 612 266-857� INTER-DEPARTMENTAL MEMORANDUM DATE: February 18, 1998 TO: Council President Bostrom and ,,� Councilmembers FROM: Marcia Moermond, Poliry Analyst �� SUBJECT: Sales Tax Revitalization (STAR) Program Proposed Guideline Amendments for Today's Policy Session This memo reviews the proposed changes to the Neighborhood STAR program guidelines. It also provides aiternative language for amendments about which some Councilmembers and Aides have expressed reservations. The amendments are listed below in the order they appear in the handout titled "1998 STAR Board Recommendations" which is in the Council packet. The pages refer to the Neighborhood STAR Program Guidelines with the proposed amendments which is also in the Council packet. �. � i Ii { 'i �. /'!! / "1 � �' / • i!L . ! " �- �• � Applications for STAR loans be accepted at any time throughout the year. Pages ii, 1 and �-�'� 10. Page I language.• Application for loans may be submitted at any time. Alternate language.� Application for loans may be submitted on a competitive basis quarterly. Page IO language: I. B. Applications for large loans are open all year... Alternate language.• Applications for large loans are open on a quarterly basis... /� lElimination of pre-application process. All completed proposals will be considered for �� funding. Pages 10, 11, 14, 15, 16 and 34. Notably, on page 16 ihe provision below is deleted as it is a pan of the pre-application process. This may have the effect of dampening citizen participation in the STAR Board application review process. Alternatively, this provision may be moved to precede point B direaly below where is appeazs currently, thus causing a re-lettering of the points it pushes lower (B through F, instead of B through E). A. 3. d. , � __'_ _' '_'A� o'T' e n� � • i• 1 t f n Tt a � vi n c - � --''- -' '- � �' - L'_�__•_7 _ -lt f •t 1 t t �Yy - - b --- -- --- — za '.u�c� 1�na.�.��.ur.w� .� T�.iva.i.s�cte.w ( -S ) STAR loans less than $50,000 wili not require a 1:1 match. Pages u, 5 and 19. �� Seed Capital Fund to be eliminated, making new program aliocation goals: 60% loans and 40% grants. Pages u, ui, 5, 18, 20, 21 and 35. � Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. Pages ii and 10. Page 101anguagr. I. F. Review by Mayor and City Council for all loans exceeding $100,000.00 and all grants. � Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 26. Other amendmen*c tn thP g�.�dol��PC• Annual Priorities Statement. Pages 1 and 2. Staf jrevie�rn� of application (suggested, not required) 2 weeks prior to deadtine. Page 13. Return of incomplete applications after deadline. Page 13. Review and information sharing on applications. Pages 15 and 16. Slight rewording and moving of text from page 15 to 16. Referral of grant applications of $20,000 or less to Small STAR Grant Program. Pages 18 and 19. The proposed deletion of the following provision from page 19 does not appear to be consistent with text on page 18. Page 18 I. A. 2. ...Requests for funds of $20,000 or less will go to the Small STAR Grant program. - : ' - .. , Pi�I.l��f-f ��iqi»�i�Jnf-��w) ��_��rn�� Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File ��- �a� City of Saint Paul City Council Research Center Room 310 City Hall Saint Paul, MN 55102 612 286-8570 INTER-DEPARTMENTAL MEMORANDUM DATE: February 10, 1998 TO: Council President Bostrom and Councilmembers ` , FROM: Marcia Moermond, Policy Analyst (� �d� SUBJECT: Sa1es Tax Revitalization (STAR) Prograzn Repon and Written Commentary for Tomorrow's Policy Session Attached is a report on the 1995 and 1496 projects of the STAR fund just received from the print shop. This report was prepared by an intem for the Department of Planning and Economic Development. It may be considered as supplementazy or background reading for the policy session tomorrow. It provides a good summary or profile of all of the projects during the program's first two years of funding. Also attached is the only correspondence I have receaved thus far on the $TAR program policy session. Based on some of the briefings that have been conducted preparatory to the policy session, I will be providing Councilmembers with policy options and guideline amendment language for the STAR board recommendation that applications for STAR loans be accepted (and processed) at any time throughout the year. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File Fi��= + -+� � ± From: To: Date: Subject: East Side N Dev <HN6244@handsnet.org> miscunix.smtp("maraa.mcertnond@ci.saint-paul.mn. us... 2/91981:37pm Proposed STAR Guideiines revisions Ms. Meorman: My name is Rich Malloy of East Side Neighborhood Devebpment Company and the Payne Arcade Area Business Association on Payne Avenue and Arcade Street. f think the STAR board recommendations are very good however, 1 have a few questions: The summary states that "Under the 12evolving Laan Progrem, the recourse wilf be to the end borrowef'. Would this be effective retroactive�y? if the recourse is to the e�d borzower, then who has authority over loan approwal? Under the eurrerrt system, if the GDC makes a ioan then recourse is to the CDC. It the rules change so the recourse is to the end borrower (e.g. a husiness owner) then can a CDC still approve a loan? As a CDC person, I like this rule, but will PED? Further, 'rf PED must be the fina4 approving authority vrith their existing guidelines and underwriting criteria , then what we have is a program that only approves loans that a bank would do. I thought the purpose of economic development loan programs was to provide financing for that portion of a loan a bank won't do. So, the question becomes, is PED going to take on more risky types of veMures? The 6ottom line is that given the approval process for a STAR loan, it is much easier for a business go to the bank. Mail Sent: February 9, 1998 1125 am PST Item: R012oY3 q8 � l�� • , � J � �. W h i G � ! U A ' E ' ^J z, O L 0. 0. N `v � 9 Q e 0 N 0. � � U O N � 0 � d O a m A N � « � � 'a �� 4 N o a C N � G � . 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G s` U G h N R � a. a T j y �N � N s � ;�¢ s y � Oda O � °» e 0 ° o 6�9 h � d " F o � a+va 6 ° o c N F � A o N y U U a °,G � E _ m'm ��'^m8 s.U2 N p �� p`,U,Zh Q8 • • r L J A �, °' u o F=, a` u � E cv a z � N U N C N O N a 6 N m m ti � V m v Q c 0 a V A � U 0 N .� m O � m z U d O a. w W N C7 « 5 c o �j m � a j v t v v � v `a i � e .W. � � m � � E � � Hz N O N N � N .3 � �n `v � 4 ¢ a � F ri� q 0o Q e N m e x � E E A � � � ' � P a � N d �' L O R C F E � o � U ° E Q � F y m� � �p w am� � s � ° v u`"s N � � �� h � a w` 0 F .c � o� y °(J U —`° s — �_ m �a i U z � o n n n a`�z� ��-�a�d Saint Paul Neighborhood and Cultural STAR Programs Report on 1995 and 1996 Funded Projects SAINTpAUL S T A R Jarillary� 1998 PROGRAM n. :'\ :-.,;^` 1C ♦ - ' �k - �, CIT'Y OF SAINT PAUL DEPARTMENT OF PLANNII�7G AND ECONOMIC DBVELOPMENT i i � � � � 1 �� Egecutive Summaries �Neighborhood STAR Program �Cultural STAR Program . . ,� i-iii iv-v � � � � � � � � � � � � � a�- 2a� Neighborhood STAR Egecutive Summary The Neighborhood STAR Program's focus is on revital.izing Saint Paul. It does this by using the sales taY derived STAR Program funds to leverage private and non-profit improvement efforts and investments in Saint Paul neighborhoods. The program works in partnership with community members, leaders, and organizations to accompiish the objectives of the prograni. The STAR applicants submit program and project proposals to an appointed boazd. This board, the Neighborhood STAR Boazd, evaluates the proposals and makes r�ommendations to the Mayor and the Saint Paui City Council. In this cotnpetitive process the City Councii makes the final decision about which pmjects and programs get funding. When making decisions about which projects and pmgrazns to fund, the STAR Board, Mayor, and City Council consider how the proposals help the City of Saint Paul reach its community and economic goals for revitalization. This report was prepazed by Fran Bums, a gtaduate student of the Humphrey Insritute at the University of Minnesota. It is an independent report. The oprions and recommendations presented are those identified by the author and aze based on his interpretarion of the information gathered through interviews with the neighborhood project managers, PED account officers, neighborhood residents, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomplishments and StudKFindings Currently the STAR Program is in the midst of its third funding cycle. Although the Neighborhood STAR Program is relatively new and most of the lazger projects and programs stili have active contracts, the time has arrived to examine the projects and programs as set forth in Part 6 of the guidelines. Through an examinarion and evaluation of the Neighborhood STAR Prograxu for cycles 1995 and 1446 it has been determined that through August 1997: • 165 homes have been improved • 50 businesses have been improved • 17 education and community centers have been revitalized • 9 parks and recrearion projects are safer and better equipped • 5 streetscapes are more inviring and accessible • 119 job have been created Other interesting findings • 22 of 61 projects are complete. Of the remainiug 39, only three aze under expired contracts. • On average, STAR funds aze be9ng matched with non-City resources more than 2 to 1. • A higher proportion of the 1996 match than the 1995 match comes from monetary matches. • An increased percentage of STAR-fund recipients from 1995 to 1996 have a positive view of the program. The most cited concern held by the neighborhood proj ect managers relates to lack of staffing and administrative costs. It was menrioned by 20% of the neighborhood proj ect managers interviewed. Information for this report was acquired through intzrviews and research of program files and documents. The interviews were conducted witfi neighborhood project managers, Department of Plazming and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who are generally the best informed source of infomiarion on their particulaz project or program, gave updated informarion on their accounts and also identified concems that they have with the Neighborhood STAR Program. The mast often cited concems were: • Neighborhood staffing and adminislration costs aze not paid by the prog�am, • Recourse and undenvriting requirements for the 1oan program are restricrive and unrealisric. • It is difficult getting fair bids from contracYors in a short period of time. • Regulations and guidelines for the program require too much monitoring and record keeping by the neighborhood pmject managers and project staff. Recommendations As a result of reviewing the accomplishments of and concerns abont the Neighborhood STAR Prograzn gathered in ttie interviews, recommendations have been developed to m�imize the benefits of the program and increase its rate of progress. Again, these recommendations aze fhose of the author. The recommendations are: 1. 2. � Require that each applicant execute a strategic »lan for the project or program that it proposes to undertake. Maintain awards as a mix of loan, grant, and seed capital funding. Sef aside fvnding for mutti-year proposais. Do not transfer tlus money into funding single yeaz developments. 4. Designate Saint Paul sites that potentially will accommodate mixed-use development. This information should be made available to potential applicants and the general public in a readily accessible form. 5. Give priority to projects and proposals that incorporate inter-neighborhood cooperation. 6. Coordinate Saint Paul revitalization with banks and contractors in an effort to increase the number of Iugh and higher density residential units available. 7. As competition increases over time require a larger match. 8. Cooperate with other departments and leveis of govemment in an effort to make plans known and foster compiementary actions in the physical environment. ii � � Summarv �� - i a� � The Neighborhood STAR Program is meeting the majority of its stated economic and community development objectives, and it has only completed two cycles. It can meet ali of the objecrives � including new housing and enhancing the taY base. However this dyuamic and flexible funding source requires well planned proposals that are being sponsored by committed groups and individuals. By implementing the above recommendations the Neighborhood STAR wili be able � to more fuliy meet its stated goals. � � � � � � lll Cultural STAR Exec�tive Summary The Culhual STAR Program's focias is on revitalizing Saint Paul's Cultural District and the culrival centers in the various neighborhoods. The Cultural STAR Program uses the sales-tas derived money to leverage private and non-profit improvement efforts in the arts and cuitural community of Saint Paul. This program Iike the Neighborhood STAR Program works in partnership with community members, leaders, and organizations to accompfish the objectives of the program. The Cultural STAR applicants submit project pmposals to the Cultural STAR Board. The boazd evaluates the proposals and makes recommendations to the mayor and the City Council. In detemvn'v�g if the proposed projects are fundable, the boazd, City Council, and Mayor examine how welI each of the projects may serve the community and its needs in light the objectives addressed in ttie prograni guidelines. This report was prepated by Fran Burns, a graduate student of the Humphrey Institute at the University of Minnesota. IY is an independent report. The options and recommendations presented are those identified by the author and are based on lus interpretation of the information gathered through the interviews with the cultural project managers, PED account officers, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomolishments and Study Findin�s The Cultural STAR Program is in its third cycle. It has'been effective in directing more than 75% of its funding to the Cuihuai Coiridor. As a result, the program has had a noticeable impact on the downtown and especially Rice Pazk. Through aa examinarion of the Cultural STAR Program for cycles 1995 and 1996 it has been detemuned that through August 1997: • 4 cuItural organizations' facilities have been improved • 2 pazk/streetscape have been improved • 2 commercial rehabilitarion projects have been completed • 10 jobs have been created Other interesting Tindin�s • 8 of 18 projects have been completed. The remaining projects are still under contract. • The projects are being leveraged with non-City resources at a ratio higher than 1:1. • No recurring concem was raised by the project managers in relationship to what the Cultural STAR Program was doing or the level of efficiency at which pmjects could be completed. Information for this report was acquired through interviews and research of the program files and documents. The interviews were conducted with Cultural STAR project managers, Department of iv � � � � � � � � � � y�� .� Planning and Economic Development (PED) account officers, and the Cultural STAR Program coordinators. The Cultural STAR project managers gave updated information on their projects. Recommendations As a result of reviewing the accomplishments of and concems about the Cultural STAR Program, recotnmendations have been developed to masimize the benefits of the program and increase efficiency in meeting its progtam ob,}ectives. Again, these recommendations are those of the author. The recommendations aze: 1. Require commercial developers in the cuihual corridor that provide services to cultural patrons to a�cept awazd packages that mix grant and loan funds. 2. Support multicultural projects by expandiug the percentage of funding auailable outside the cultural corridor. 3. Allow Cultural STAR funds to go toward operaring expenses. 4. Consider discontinuing the minimum funding rule for the cultural corridor after the initial 5 year period has elapsed. 5. Focus on funding org3IIlZations that tluough their creative efforts honor 5aint Paul. Ensure that children are part of the targeted audience of the cultural organizations that receive funding. The Cultural STAR Program is addressing all of its objectives. The STAR Program has helped downtown Saint Paui realize a renaissance and it is committed to conrinue that role. As funds available to cultural organizations dwindle, the Cultural STAR must strive to meet the changing needs of residents, visitors, and the cultural organizations. v I. Contents for the Neighborhood STAR Report Neighborhood STAR Executive Summary Cultural STAR Executive Summary Table of Contents A. Introduction B. Objectives of the Program C. Improvements Funded through the Neighborhood STAR Prograni D. Progress E. 7obs and Taxes F. Matches G. Perception of the Neighborhood STAR Program H. Issues Raised by Neighborhood Project Managers and Options for Addressing Them I. Overall Program Issues and Recommendatians 1. Short-Term Strategic Issues 2. Longer-Term Strategic Issues 3. Recommendations J. Conclusion Exhibiis Projecf Development Types (exhibits 1.1) Properries D'uectly Benefiting from the Neighborhood STAR Program (elchibit 1.2) Status of Program and Project Disbursements and Completion Rates for the SmaII STAR Program (eachibits 1.3) Status of Program and Project Disbursements and Completion Rates for the Large STAR Program (exhibits 1.4) Percentage of Funds Disbursed by Period (exhibit 1.5) Matches (e�ibiT 1.6 ) Projects with Sweat Equity as MaYch (eathibits 1.7) Matches (eathibit 1.8) Neighborhood Project Managers' View (exhibits 1.9) Issues Identified by Neighborhood Project Managers (ea�hibit 1.10) i-iii iv-v vi-xi 1 3 3 3,4,7 8 9 21,13 13, IS-19 19-24 19-20 ZO-21 21-24 25 2 4 5 6 7 9 10 11 12 14 vi � � � � � � � � Identification of Conditions Facing the Program (exhibit 1.11) 1995 Small STAR Projects 95.002 95.009 95.013 95.015 95.016 95.017 45.019 45.022 95.024 95.026 95.027 95.030 95.031 Neighborhood & Senior Citizen Garden Hamlitte Midway Greening/Park Accessability Project Child Care Expansion & Renovation Northeast Business and Development Center Open School Playground Reinvesting in Tomonow's Communities Riverview Area Streetscape Design Improvement Grand Avenue Summit Hill Beautification Thomas-Dale Handyman Fiac-Up Project Stutzman Block Initiative Walker-West Music Academy Music Garden WORC on Bikes The Express Bike Shop �' 1995 Large STAR Projects � � 95.104 45.113 95.115 95.116 95.125 95.127 95.130 95.133 95.141 95.148 45.151 95.152 95.153 95.155 95.158 95.165 95.166 Aesthetic Uplift and Senior Citizen Assistance Dayton's Bluff Neighborhood Housing Services Payne Avenue Commercial Gateway Strong Neighborhoods=Safe Cities Hamline-Midway Rehabilitation Corporation (H-MARC) Jewish Community Center Capital Improvement Macalester-Groveland Middle Income Fix-Up Neighborhood Development Center Dale Cross Road Development Strategy St. Alban's Terrace Railroad Is1and/Moving on the Right Track Riverview Area Streetscape West Side Business Development L,oan Fund Industrial Expansion and Renovation Loan Prograzn Phalen Corridor Redevelopment Project Cambodian Community Center University Marketplace Facade Improvement �-iag 2425 27 29 31 33 35 37 39 40 42 44 46 48 50 53 55 57 59 61 63 65 67 69 71 73 75 77 '79 80 82 84 vii 1996 Small STAR Projects 96.001 96.002 96.003 96.004 96.005 96.009 96A11 96.013 96.014 96.016 96.017 96A19 962 University Avenue Facade Improvement Maintenance, Training, & Dishibution Center Furniture Wazehouse Children's Center Playground Dayton's Bluff Youth Project HamIine Branch Library Public Improvements Skyline Towers Piayground Project Saint Paui Access Solutions Project John Alden Square Gazebo St. Anthony Park Facade Impmvements Progruu Salvation Army East Side Corps. Community Center Parlang Lot Stutzman Block Facade 87 89 90 92 94 96 98 I00 102 104 106 107 1996 Large STAR Projects 96.103 96106 96.109 96.114 96.I15 96.119 96.122 96.123 96.126 96.128 96.133 96.141 96.145 96.151 96.157 46.163 96.168 96169 96.170 394 Dayton Avenue Rehabilitation Project Gateway to Como Pazk Lighting Arcade/Maryland Face to Face Minnehaha Mall Enhancement Lazge Format Printers Highland Viliage Revitatization 5e1-Dale Laundromat Build Community and Neighborhood Capacity MacLazen Hill Condominium Association Reconstruction Project Minnesota Boat Club Restoration Frogtown Entrepreneur Center Phalen Corridor: Williams Hill RAP Midway Area Head Start Program Coordinated Housing Investment Program Salvarion Army 7th Street Community Center Ramada Hotel University-Midway Neon Sign Pmject West 7th Commercial Revitalization Lyngblomsten-West 7th Senior Housing 108 110 111 113 1l4 116 118 120 122 124 126 127 129 130 132 134 135 136 138 viii � � � � � � � � � � � ix f � ,� II. Contents for the Cultural STAR Report A. B. C. D. E. F. G. H. I. J. K. Introduction Objecrives Improvements Funded Through the Cultural STAR Program Progress Compliance Economic Impacts Matches Perceptions of the Cultural STAR Program Issues Raised by the Cultural Project Managers Overatt Program Issues and Recommendations 1. Short-Term Issues 2. Longer-Term Issues 3. Recommendarions Conclusion 139 139 141 141 141-142 142 142,145 145 145 146-147 I46 146 147- 148 148 Exhibits Status of Culhu�al STAR Accounts (eachibits 2.1) Matching and STAR Funding (e�ibit 2.2) Cultural Matches (exhibit 23) Cultwal Project Managers' View (exkibits 2.4) 140 143 143 144 X �. � 1995 Caltural STAR Projects � � � � 95.509 95.510 95.511 95.516 95.518 95.523 95.528 95.530 95.534 Skyway Lighting Library Facade Lighting Rice Park Improvements Minnesota Club Handicapped Entrance Minnesota Museum of American Art ExpansionlRenovation Ordway Patron Service Improvement Arts Resource Center Expansion Saint Paul Chamber Orchestore Cambodian Community Center � 1996 Cuitural STAR Projects � � � � � 96.542 96.545 96.546 96.549 96.550 96.551 96.552 96.554 46.559 Science Museum of Minnesota Expansion Friends of the Library's Used Book Store Hilicrest Recrearion Center Theater(Communication Room History Center Exterior Signage Cultural Comdor Streetscape Plan Jackson Street Roundhouse Museum Development Museum of Wheels/Storefront Gallery Minnesota Centennial Showboat Renovation NeimanlJemne Building Loan � � C Q� - l a� 149 150 151 152 154 156 158 159 161 162 163 165 166 167 168 169 171 173 xi L' � i � A. Introauction Neighborhood STAR Report �� The Minnesota State Legislature approved authorizing legislation in May 1993 which pennitted the City of Saint Paul to levy an additional %z cent sales taac. 11us legislation states that the revenue may � be used to pay for all or part of the capital eapenses for expansion and remodeling of the Saint Paul Civic Center Complex, and that "the reminder of the funds must be spent for capital projects to further residential, cultural, commerciai, and economic development in both downtown Saint Paul � and Saint Paui neighborhoods." Through a resolution the City detemuned that 50 percent of the additional sales ta� raised would go to neighborhood revitaliza6on. The remauring 10°/u would support cuiturally related projects, primarily in downtown Saint Paul. The City Councal established � the Sales Tax Revitalizarion (STAR) Program which includes the Neighborhood STAR Programs, in mid-1994 to awazd grants and loans for capital improvement projects. � This report examines the Neighborhood Sales TaY Revitalizarion Pmgram (STAR) for the first two cycles of the program in 1995 and 1996. It considers the program's strengths and weaknesses by looking at 61 individual projects and programs funded through the Neighborhood STAR Program � as well as overali indicators of the program's performance. The report focuses on the level of success that the progam has had in meeting the goals and objectives outlined in the program guidelines. The examination discusses cSrcumstances and strategies which have helped the � Neighborhood STAR Prograni meet its objectives and identifies areas for nnprovement. The report emphasizes the opporhxnities and threats which are present to the Neighborhood STAR Program. � It proposes options and recommendations for enhancing the program by taking into account the diversity of the program participants, the expectations of City of Saint Paul officials and staff, and most of all, the needs of Saint Paul residents � Information for this report was acquired through interviews and research of progam files and documents. The interviews were conducted with neighborhood project managers, Department of � Planning and Economic Development (PED) accownt officers, neighborhood residents, and the Neighborhood STAR Progam coordinators. The neighborhood project managers, who are generally the best informed source of informa6on on their particular project or program, gave � updated information on their accounts and also idendfied concems that they have with the Neighborhood STAR Program. This report was prepated by Fran Bums, a graduate student of the Humphtey Institute. It is an independent report. The options and recommendations presented aze those idenrified by the author and aze based on his interpretation of the information gathered through the interviews. Projecf Development Types ror+sgs Ne�annoNwoa sraFt 5'1�026,000 (36.SX) Commerciet Sss,000 �ts 564,425 (2.3%) Parks 8 Reueationai unprweme� 'Sea�9 Ne9hmrta W r-Sate CSf nas tivee mmpom�es resiE ntiel. tdnre�aal.vtl aPak vnW'mmvR z9sx) Res�aenGa� (282Y) FAUratioN COrtmurpry& Social SerNCes I Project Development Types � for t996 Neig�6orhoad STAR 5/,290.000 (31.�) Coimnerclai 5140p07 (S.6%) 5 SSS,92a ryAH.) Parks & R¢creatlanal Exhibits 1.1 W.BX) Reside�rtal .BY.) EduqtloNCommunity & Social Services E � � � B. Objectives of the Program "ID �c�p � The following objectives are listed in the program guidelines adopted by the City Council: � Economic development 1. Enhance the commercial and industrial taY base - 2. Create family supporting jobs � 3. Improve andfor stabilize local businesses and provide athactive and economically viable neighborhood commerciai areas 4. Reuse land following pollurion clean up � Community development l. Improve and/or stabilize housing stock and/or increase market value 2. Provide new housing that meets an identified need in the mazket � 3. Improve public infrasmncture and private green space especially if the projects are linked to related residential or commercial improvements � C. Improvements Funded Thro�h the Neighborhood STAR Program Tt�e results from the interviews with the 61 Neighborhood STAR pmj ects and programs indicate that � a substantial amount of revitalization has occurred in Saint Paul as a result of the Neighborhood STAR Program. L3p to the time this report was written 215 housing and commercial properties were � directly improved as a result of STAR projects and programs. The Neighborhood STAR programs and projects haue accomplished more than residential and commercial improvements. As a result of the program, two streetscape improvement projects have been completed, one on Concord Street � and the other on Grand Avenue, two more are partially completed on Wabasha Street and Ford Parkway, and another streetscape improvement on Como Avenue is in the process of being implemented by Saint Paul Public Works. Additionally five parks and playgrounds have been � created or improved and fotu more have been partially implemented. Lastky I7 community center projects have been awazded Neighborhood STAR funds. Of those projects, nine are completed and eight are in the process of being completed. The diversity of projects funded through the � Neighborhood STAR Program allows it to touch virtually everyone in Saint Paul. As a result of the streetscape projects, tens of thousands of Saint Paul consumers have improved shopping environments, and in the cases of the pazk, playground, and community center improvements, � thousands of families and their children aze beneficiaries. b D. ro re s Nearly all of the 19 fully disbursed projects and programs &om 1995 and 1996 have achieved the goals ouflined in their individual contract descriptions. Three of the fully disbursed projects and programs have noi been fully unplemented. One is a program which involves a loan guaranty and is still under contract (Mao-Groveland). The money was disbursed by the City prior to any improvements because of the way this program was set up. As a result full disbursement does not indicate completion. The other two incomplete projects ( John Alden Gazebo & Dayton's Bluff Youth Project) face a different circumstance. They went over budget. One of the two is completing the project by the end of fa111997 while the other informed the Neighborhood STAR Program about its cost ovemms and was permitted full reimbursement because the project could document a sufficient matcb and had been completed to an acceptable level. As of September 1997, 22 projects and pmgrams have been completed. Tlus includes three accounts which have not been fully reirnbursed. This is due to the fact they still haue not submitted the appmpriate reimbursement forms, or they declined the remainder of the awazd. Currently only three of ihe remaining 39 progams and pmjects that are not complete have eapired contracts. The three programs and projects with expired contracts are under the Neighborhood STAR staff's and board's serutiny. The majority of the open contracts expire in 1998 and 1999. Properties Directly Neighborhood 1995 Houses Busmesses Streetscapes Parks and Recreation Fducalion & Comrunity Centers Exhibit 1.2 Benefiting from the STAR Program 73 22 1996 92 2% 2 4 Total 165 50 5 9 F'7 11 17 Progress on the impiementation of prajects has been varied and on average fair. The small grant projects are easier to gauge in this regazd because their contract periods have elapsed, and also because the contract signing process was more efficient. The small grant portion of the Neighborhood STAR Program has a sepazate application process from the remainder of the program. Small grants are awazded in an amount of $20,000 or less, and contracts are effecrive for only one yeaz aRer signing. Thus, the contract signing took less time for the small grants because recourse was not an issue and the contracts were less complex. The 1995 small grant contract completion progress rates within the contract periods were low (38.5%) but have increased by more than 50% for the 1996 small grants. The completed Sma111995 Neighborhood STAR pmjects were implemented on average one month prior to the expirarion of their contracts. The reason that the overall completion time was one month prior to the deadline was because a few projects were completed extraordinarily quickly. The pmjects that were completed more quickly would be classified as commercial and not as residenrial. The 1996 Smali Grant Program indicated an average completion rate of four months prior to contract eapiration. This too shows moxe success in the timely completion of its commercial and civic pmjects than it did with residential projects. � � � � � � � � �� L � ■ STATUS OF THE 1995 SMALL STAR ACCOUNTS � Siatus of Projeet Aceount Dis6ursemeMs � fort9955mai1STAR i 8 (61.5°/) 2 (15A%) •rmry I ❑none ��N I 23.1%) Projects Compieted within Anticipated Period far 7995 Smali STAR 3 (23d%) • Yes ❑ no 10 (76.9%) I Pro}ects Cnmpleted within Contractetl Period Ior t995 SmaI15TNft 5 (38.5%) .Y� o no �� - �a� STATUS OF THE 1996 SMALL STAR ACCOUNTS Status of Projeet AccomH Disbursements i for�9965ma115TAR 5 (41.7%) 2 (76.7%) 5 (4'1.7°! ) I .Poiry OfIOf18 �PaNalry Projeets Completed wHhin Anticipated Period tor 7896 Small STAR I 5 (41.7°/,) 7 (58.3%) •yss I ono i an:a�mmmpemnaawnanm�omvrcetampqnu.eae<imAnsxm�unar.a I nwraerne.w�+�omi-w: .— _ . I Projects ComplMed within the ContraMed Period � tor 1996 Small STAR I 7 (58.31) � • Yes ❑ no 5 (41.7%) e.a�.�mm, n...m� � r..m.a�.�.m=�-ra { Exhibits 1.3 5 8 (61.5%) STATUS OF THE 7995 LARGE STAR ACCOUNTS StaWS of ProjeM Account Uisbursemenis rw �,rn +su x.�cxn�,�e sue Jryz.aXl f0(54!%) sFl om 9p�mM � Projects Completed Within Mticipated Period i lmf995WPSTAR Ys p11J eimwOln Projects Completed wiMin ContracMd PeriOd ro.�aro.�mrLk��sTAa 15 �63%1 •YM om JIRb%) euwNN t(59X) 2¢wuammpleWnOg¢Slammtcmuetbr PDI�.��aae NYIMefOfeqxld�l¢-� y¢ )C5.1 ¢ ro Exhibits 1.4 STATUS OF THE 1996 LARGE STAR ACCOUNTS Status of Project Account Dishursements �r ivw+sss wqnna noea srat f0. t (]BA%) M1�J eWrYaYy Prol� �mpieted wAhin Mticipated Period I ! I torWplsssNtlpMwnmasi�x i 9 (OAX) �Y o �b 3(tS!%) aW�% )NSSY•) Projects Completetl withirt Contract Periotl brinPt936Htlp1qe�M1eoL3TIJt t6�91.T%) fl43%1 •nmY swm.ib BqY NGml�l�+ nEel:B�S.lilrtap]mM.a;➢��M15��1�4dNW NW�.+IpfGtp�-19ye�es � �. � � � � � � � � q�- �d� It is harder to determine the rate of completion for the 1945 Latge Neighborhood STAR and 1996 Neighborhood STAR projects because a majority of the projects have not reached the deadline expiraiion dates on their contracts. The 1945 Large Neighborhood STAR proj ects look promising for timely compietion. For the completed projects the average progress schedule was finished eight months prior to the conhact eapitarion. Project managers from both the 1995 and 1996 Large STAR Prograzns are indicating an expected timely completion rate ofmore than 75°/a. Tlus is substantially higher than the 1495 and 1996 Small STAR grant complerion rates. The success rates for all the 1995 and 1996 Large Neighborhood STAR acrivities are impressive, but aze still strongest in the non-residential development types. One must bear in mind that comparing the rates of completion between the Small Neighborhood STAR and the Large Neighborhood STAR might not improve one's understanding of the entire STAR Prograzn. For one flvng the Sma11 and Lazge Neighborhood STAR Prograzns have different lengths of time to complete the'u projects. Second, the bigger loans and grants aze typically granted to lazger organizations which might have more resources and sawy to complete a project. Third, the 1995 and 1996 Large Neighborhood STAR projects have not come to fruition in most cases. The progress rate for these proj ects is based totally on expectations. Thus by coraparing the small and lazge projects one is comparing what has been with something which has not completely happened. Percentage of Funds Disbursed by Period Sma111995 � Total f Large 1995 � Total � Smali 1996 Total � Large 1996 f Total Exhibit 1.5 Percenta�e Disbursed 80% 61% 72% 32% Contract Amounts of $ I 60,254 of $2,653,578 of $178,374 of $3,297,163 *As of 913/97 (36 of 61 contracts still open). E. Jobs and Taxes Determining the economic impact that Neighborhood STAR funds have on a pmject is difficult The STAR does not fund the entire project. At least half the project costs have to come &om another source(s). Moreover, other factors such as accessibility, crime, amenities, jobs, schools, and numerous other variables play a significant role in the impact of aprojec� Two traditional economic measures of a projecYs success aze jobs created and ta�ces paid. Because the Neighborhood STAR projects all involve development with bricks and mortar, these measures are fitting. Job creation cleazly occurred in these projects, albeit of a temporary duration, because of the nature of construction. Hundreds of temporary construction jobs were generated. In addition, permanent jobs were created on varions STAR Progratn projects. In 1995, Neighborhood STAR-funded projects created jobs for 15 permanent full-time employees (FTE) and 32 part-time employees (PTE). 'The 1996 STAR-funded pmjects show a substantiat increase in FT'Es to 66 and a decrease to six PTEs. The other measure to be considered, ta�ces paid, has Iimited usefulness because of tfle frequency at which properties are valuated and the method useti Yo determine the tax amount. Properties are reappraised at Ieast every four years whereas the Neighborhood STAR Program has only been operating for two complete years. For this reason most of the STAR projects have not had an increase in property valuation. The method by which Ramsey County revaluates much of the pmperty also slows the process. They take an average pmperty value for an area and assign that value unless there is a petition of a particulaz valuation. Because of this approach most of the business and residentiai enterprises that received Neighborhood STAR funds were not reappraised yet. All of the property tac valuation increases that can be documented as resulring from the Neighborhood STAR Program were associated with business projects. For instance fhe new owner of the Ramada Inn on Old Hudson Road paid offthe delinquent taxes from the previous owner. This renovation project which included Neighborhood STAR funds has restored this property to its full operational level. As of May 1996 tlze new owner paid $342,027.15 in previously assessed tases. Another example of an increase in the taY base or successful taac collection was due to the development of a light industriat enterprise at 110 Sycamore Street. T1us property was previously under the care of the Saint Paul Port Authority and was classified as tas-exempt. As of talc yeaz 1998 this property will be talced as a commercial properiy with a land value of $138,300 and a building value of $500,100. A third property which contributed significantly to an increased taac base was the STAR funded Sel-Dale Laundromat. T7us pmperly was in health-threatening disrepair, and it was valued at $50,400. After the renovation tlus property, classed Commercial B, was revalued at $ I25,600. This is only a smail survey of properties that have received STAR funding and have recently increased the tax base, but as the years elapse and more 3TAR recipient properties are reappraised the valuation and tases aze likely to increase. f� � 1 F. Matches As stated eazlier the newness of the Neighbozhood STAR Program and the fact that it does not act � in isolation makes it difficult to determine its impact, but some facts are ciear. For instance the funding matches to the Neighborhood STAR Program for 1995 and 1996 are runtung at more than � � Matching and STAR Funding for 1995 and 1996 Neighborhood STAR ��a� � � � � � � � Eghibit 1.6 r � � . STAR Disbursements � Documented Matches twice the required rate. On average, every time a Neighborhood STAR dollar was reimbursed there was $2.18 invested in the project from other sources. The most robust example of a match is seen in the 1995 Lazge Neighbarhood STAR Program. It shows $2.61 of a private match to every dollar of STAR contribution. Although, at this point, data does not show this increasing from 1995 to 1996, it is probably a function of tirue. Only 32% of all 1996 Lazge Neighborhood STAR funds have been disbursed whereas 61 % of funds have been disbursed for 1995 pmjects. As 1996 projects aze completed, the current match ratio of $1.57 to every Neighborhood STAR dollaz is expected to increase. The proposed pledges indicate that there will be $3.04 provided for every Neighborhood STAR dollar for the 1996 Large STAR projects. This pledge projection compares quite favorably 0 Projects with Sweat Equity as Mahh I forSmali 1995 STAR 70 (76.9Yo) 3 (23.1%) � yes � no I P�ojxts wiM Sweat Equity as Match for Small 1996 STAR 6 (50.0%) a yes 6 (50.0%) � � Projects wiM Sxeat Equity a5 Mgtch I for Wrge 7995 STAR �� '� n�R '�`� � e„ r r 4;:3 x'�t,.r �. �. a Z � .�::- F .�i;:J `w,,, x-- � y25 � no i f Projects wifh SweM Equity as Ma[ch � i for La'ge 7996 STAR i �� •� � F �� ' � � av � � �� .. r "F �I� { fi }a( I y.� a .• .s ''Gkk'' BL.�'.n'uA� � yes m no F�chibits 9.7 IO � , , � !. � � � � � � LJ � t• . ! Exhibit 1.8 � to the $2A1 piedged for the 1995 Large Neighborhood STAR Program. What is equally heartening � to the increased rate of match for Neighborhood STAR funding is the fact that the matching dollars increase. The Neighborhood STAR Program is accomplishing its goal to be a catalyst for reinvestment in Saint Paul's neighborhoods. � Sweaf Equity: Another positive indicator of the economic unpact of the Neighborhood STAR Frogram is a decrease in the number of projects which use sweat equity as part of the match. � Although proj ects can show as much as 30% of their match as sweat equity and in some cases more for the Small Grant Yrogram, only 1.6°/a of the total documented match has been in the form of sweat � equity. The number of projects identifying sweat equity as part of their match decreased from 13 in 1995 to 10 in 1996. The absolute number of dollazs has also decreased from $75,546 in 1995 to $27,456 an 1996 as of 9/3/97. This decrease is addifionally interesting because the absolute amount � of STAR monies. G. Perception of the Neighborhood STA.R Pro�ram During the interview process both neighborhood project managers and residents gave their opinions about the Neighbarhood STAR Program and its impacts on their communities. Despite some issues raised by the managers their overall responses would be characterized as posifive regarding the Neighborhood STAR. For example, Colette Ryan, the project manager of Chiidren's Center 11 Neighborhood Matches through 9/3J97 , Project Managers' View of the STAR Program I for Small 1895 STAR Recipients 9 (692H.) 2 (15.4X) 2 (15A'b) � positive o negative � no cammeM Project Managers' View of the STAR Program ' for Smalt 1896 STAR Retipien4 e (75.OH.) 3 �25.OR) � posNVe � no wmment Project Managers' View of the STQR Program !` for Large 1995 SiAR RecipieMs 9 (52.9•4) 3 (17.6°�} 5 (29A%) � positive � negadve � no wmment Project Managers' View of the STAR Program � forLarge199657ARRecipients 11 (57.9°/.) Z ltasxl 6 (31.C/.) Euhibits 1.9 �� I o negative � � no wmment '� �� C� � � 12 � 1 � lJ `� . � Playground, described the Neighborhood STAR Program as a"good fiY'. She said, "the coordinators were helpful." Another instance that represents the positive perception that the project managers have was voiced by Burt Gart. Mr. Csazr is the project manger of the Jewish Community Center Capital Improvement. He said, "the STAR worked well...it was relatively flc�ible." This outlook on the Neighborhood STAR Program was shared by most of the participants. Neighborhood staff are convinced of the Neighborhood STAR Program's positive impact on Saint � Paul and are expecting continued success in the future. Almost every manager's concerns about the Neighborhood STAR Prograzn were subordinate to their support of the important purposes of urban � revitalization and development as achieved through the I3eighborhood STAR Program. The neighborhood project managers' perceptions are shown in elchibit 1.6 and indicate that the positive view of the Neighborhood STAR Program has increased from 60% to 64% of garticipants and the � negative view has decreased from 17% to 6% of participants from 1995 to 1996. The residents and community members who commented on the Neighborhood STAR Program and its impacts were even more posirive about the STAR's purpose to improve neighborhoods than the project managers, � but they were less familiaz with the actual program. An East Side resident, Marion Sorlien said, "it (STAR) is a life-saver." She added, " others (homeowners) will follow suit (and renovate their homes)." Another resident, John Allen of the Aurora-Saint Anthony neighborhood said, " this (the � STAR) is a great opportunity. It has helped us spruce up the neighborhood." There seemed to be an overall attitude that revitalization programs offered by the City like the Neighborhood STAR "prime the putnp". They were hopeful that with such assistance they could improve their � neighborhoods and communities and enhance the general level of confidence in Saint Paul as a great piace to live, work, and invest. � � � � H. Issues Raised by the Neighborhood Project Managers and Options for Addressing Them: The options and recommendations presented ate those identified by the author and are based only on his interpretation of the information gathered through the interviews. The neighborhood managers of STAR pmjects identified various issues that they believe impede the STAR from having its greatest benefit for Saint Paul neighborhoods. It is possible that through an examination of these issues new options can be considered. After this step it can be determined if change wili improve the program and what shape the revisions should take. Concern #i � The most often mentioned concem discovered through the project interviews was the fact that Neighborhood STAR funds are not eligible to pay administrative costs incurred by neighborhood groups. The Neighborhood STAR Program participants aclaiowledged and concurred with the ' Minnesota State Legislature's objective that Neighborhood STAR funds go toward capital improvements and were aware that direct project management expenses are reimbursable, however 13 Issues Identified as Concerns by Neighborhood Project Managers Percentage of Managers Citing the tssue 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 900 Neighborhood Staffirtq and Administration Costs (20%) !rse antl Underwriting Requirements for Loans (73°h) � � � � Fair 8 Efficient Projed Bltls (10%) I 7 � � � � W I O Program Guitlelines and RegWations (10°k) I Q�, ,I � � Reimbursements (8Yo) � I Funding Match (89'0) Timing af Cyctes (5%,) Exhibit 1.10 14 � j L� � Q�- �a� they eapressed concem that projects are not able to be completed or at least not completed in a timely manner because of lack of funding for admiiustration costs. The organizations and community goups who aze participating in the Neighborhood STAR Program say that their budgets do not allow for the expense of administering the projects. It has been difficult if not impossible to get the funds elsewhere. At a m;n;mum the lack of administrative suppozt slows the implementation process down. Project managers recommended that 10% to 15°!0 of STAR awazds should be eligible to reimburse the participant for project administrarion and staffing. � Options � � � , � Petition the Minnesota State Legislature to amend the STAR authorizing legislation. In prepararion of this initiative the Neighborhood STAR Program could request that 1997 Neighborhood STAR participants provide informarion about their administrative costs. This will be an additional uncompensated responsibility for the projects at fust, but it will potentially aid future participants and 'unprove the level of information that the legislature will need to make a prudent and well-crafted decision. Furm cooperative partnership(s) with non-profit foundation(s). Since the Neighborhood STAR Program cannot directly give administrative reimbursements to projects, it should help the participants ]ocate the money by forging a fast-track procedure with appropriate foundations which would be agreeable to funding administrative costs. The project managers indicated that they ultimately get administrarive funds from foundations. This arrangement would merely streamline the process in order to get projects expedited. � • Require each Neighborhood STAR Program applicant to deTinitively describe from where its administrative bndget is coming. A question could be added to the Neighborhood STAR application which pinpoints the projecYs source of administrative � funding. These monies could be from the appIicanYs resources or those of another agency, but the funding source for administrative expenses must be identified in detail. t Concern #2 � Another set of issues that the project managers commented on was the recourse and undenuriting requirements of the Neighborhood STAR loans. The Economic Development Corporations (EDCs) and the Community Development Corporations (CDCs) voiced strong concem over the usefulness � of recourse which hoids their organizations responsible for the loans that they make. Again they understood that the Neighborhood STAR Program is hying to generate an envirorunent in which the EDCs and CDCs make sound lending decisions, but with little or no fixed assets they see this as � being ineffective and producing a chilling effect on the participating organizations' willingness to use the Neighborhood STAR loan funds. Another problem that the project managers recognize is the underwriting criteria that the Neighborhood STAR Program requires for loans. They believe that � credit reports alone do not take into account all the important factors that make a project worthy of funding. They think that the Neighborhood STAR Program's requirement to make loans that 15 maintain a 20% or lower loan loss level prohibits the Neighborhood STAR Program from functioning as it was intended. The community organizations that take issue with the Neighborhood STAR loan prograni see high risk as a reality of community and economic renewal in urban settings. Some participants believe that the Urban Initiatives Pmg�am (IIIP) administered through the Minnesota Depattment of Trade and Economic Development offers the Neighborhood STAR Prograni a model. The model shows fhat loan recourse goes to the end borrower. The commtmiry parhner (the intermediary agency) is not responsible for paying the monies back to the pmgram. The reason that recourse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regulations and requirements. Because of these qualities, it is seen as an effective tool by some parties involved with economic development. Options Conduct a Study. A study could be conducted that evaluates the social benefits and costs as well as the economic benefits and costs associated with changing the acceptable risk rating level of loan portfolios. The acceptable rate must be determined with proper consideration of all pertinent factors. With this said it must be recognized that underwriting criteria aze critical and must be followed when lending out citizens' taac money. As long as a thorough analysis is done of social and economic factors when considering a proper risk rating the undenvriting criteria should remain constant. Expand the STAR Program's relationship with private lenders. The Neighborhood STAR Pmgram could continue to enhance its partaerships with private lenders. In doing this the Neighborhood STAR's financial resources are matched with the bank's financial resources, community coniacts and Iending I�owledge. There are several Neighborhood STAR projects which aze demonstrating this relationslup. Two such examples are the Macalester-Gmveland Middle Income Fix-up and the Coordinated Housing Investment Program. They each can urilize the strengths of banks and reach citizens who haue not traditionally benefited from revitalization efforts. Concern #3 A concem that six of the participating managers cited was the difficulty they had when trying to get bids on proj ects. In many cases once they got a contractor to bid, the quotation did not fall wittrin their budget. Many of the project managers believe this happened because the economy was robust in 1996 and early 1997, and in pazticular the construction industry was strong. As much as the strong economy slowed the bidding process and inflated contractor fees for Neighborhood STAR projects stymied implementation, it is well wiYhin expectation that these conditions will not continue indefrnitely. In the meantime perhaps there are approaches that can be taken. � � � Options � � � � � � � � � � � � �� . � � Identify and assist broad-based community gronp(s) or other non-profit agencies to fnnction as (an) information resource(s) to project managers about available and qnalified contractors. Many of the smaller social and community organizations do not have the time, lrnowledge, or patience to locate andlor work with contractors. A resource like this could help to make certain that available and qualified services efficienfly connect with projects. Fees could be charged and collected on the user. These could reflect the entire chatge or be subsidized by other supportive agencies or non-profit agencies. • Ensure that the application information concerning the general contractor and cost estimates is complete. As the Neighborhood STAR Program establishes itself, it gains mare prominence and citizen interest. The applicants and Neighborhood STAR recipients aze becoming more familiar with the expectarions and requirements of the program. In this environment comperirion for the Neighborhood STAR's limited resources is heightened. As of the latest version of the Neighborhood STAR Final Application (1997) the name of the general contractor is requested if lrnown. The question could be modified to simply request that the contractor be identified. This may only be tentative, but it would give PED staff and the Neighborhood STAR boazd a cleazer indication that the applicant is aware of the true costs of the capital improvement ptoject. Another application question that could be helpful would address whether the general contractor can meet requirements set forth under Little Davis-Bacon legislation. Concern #4 Another group of neighborhood project managers said that the guidelines and regulations slow down the projects, alter the final product, and decrease the effecriveness of the Neighborhood STAR Program. Of the six who menrioned this issue a few were concemed with changes in the administrative requirements during the beginning of the program. They understood the need for the particulaz changes but thought that it should not have been done midway through the cycle. All the interviewed participants felt confident that future changes in the progam would be reserved to the periods between cycles. A few of the project managers were disturbed by the amount of regulation and associated record keeping that was necessary. Many of the participants view themselves as small players. They see the regulations and requirements thwarting their efforts to improve their neighborhoods. � Options � • Continue to make changes to the Neighborhood STAR Program only during the interim periods between cycles. By foilowing this procedure of geater continuity PED can foster public confidence in the program. It demonstrates the City's commitment to the goals of the STAR Program when it recognizes and aclmowledges the spirit of the program as well as the letter of its guidelines and the need to change. 17 Provide participants with literature that not only describes the legislation that defines the Neighborhood STAR Program bnt offers them awareness of the reasoning and bene6ts behind ttte regalations which they must comply with as Neighborhood STAR fund recipients. The information packet could be developed in conjunction with the City as a whole. It could explain that many of the regulations which apply to the Neighborhood STAR Pmgam such as Little Davis-Bacon and affirmative acrion apply to all City contracts. Some of the more key details of the applicable legislation could be considered during the project compliance meetings for the Neighborhood STAR Program. PED must also recommit itself to maintaining accurate, thomugh, and pmperly accessible files on every account regazdless of its size or the client who is involved. Additiona! Concerns Three other issues were idenrified by more than one neighborhood project manager. They were reimbursements, matches, and the awar@ cycles. Tke first two issues were idenrified more frequently by smail grant recipients and tiie issue of awazd cycles was mentioned only by managers of lazge proj ects. The participants wanted more fleacibility on these points. In particular they wanted less of a matck requirement, some cash advances as opposed to reimbursements only, and earlier cycles to take advantage of the entire construction season. According to a few project managers, getting reunbursements rather than advances put their organization's finances under stress. The Neighborhood STAR pazticipants are on limited budgets and cannot put the money up front. Reimbursement Oprions: First participants should ba reminded that the Neighborhood STAR Program will make check payments jointly to the Neighborhood STAR-funded agency and the provider of the reimbursabie service. Secondty the Neighborhood STAR Program could consider giving advances under a certain dolIar amount to participants with a good history of project management with previous STAR projects. If they do not provide the appropriate papenvork to warrani the disbursement withiu a designated period the award will be decreased accordingly over a deternuned period of time. Matching Options: One possible option to address the matck issue would be to eliminate the match requirement on loans under a certain defermined amounf. This option would not benefit smail grant recipients, but it would help those who are borrowing money from a Neighborhood STAR program and cannot get additional funding elsewhere. Another choice which might help the small gtant recipient would be to lower the match requirement for small grant projects but not eliminate it. This would help ease the pressure on some of the smaller participants while still requiring them to widen the project impact through a match. Cycle Option: Because of seasonally adverse weather it is easiest, most economical, and best to complete all extemal project nnprovements during certain times of the year. In order to complete the projects with the greatest efficiency it is pmposed that the application pmcess begin eazty enough to allow the initial unprovements to be reunbursed during the beginning of the first spring after Yhe application was submitted. STAR neighborhood projecY managers discussed many other m � � � ' � •i issues during the interviews, but no other issue was mentioned by more than one project manager. The single mentions included: lack of periodic checks on progress, lack of geographical fairness, inadequate direcrion and training sessions, unclear lines of organizational authority, and the limited benefit of a low interest rate in light of the costs to adhere to program requirements IE. contractors that meet City requirements. It is important to be awaze of and understand the issues that each of the Neighborhood STAR � participants raises. These community groups and members aze uniquely familiar with the interests and concerns of Saint Paul residents, businesses, and other organizations. Their Irnowledge of the City and willingness to share it enriches the program and Saint Paul as a whole. With this in mind � trus report wiil consider the interviews, the account files, and the various measures and indicators of the program's success to idenrify strategic issues and recommendations. � J. Qverall Program Issues and Recommendations � L i � � !J � � � � � � 1. Short-Term Strategic Issues: a. How can the Neighborhood STAR Program promote more expedient implementation of projects? When projects and programs are not completed within the contracted time period, they lose momentum. This has economic as well as social costs. The process of awarding Neighborhood STAR funds is competitive. In adherence and support of this feature of the program repeated efforts must be made at each step of a proj ecYs progress to ensure timely implementation. Although many of the projects both large and small accomplish their objectives on time and with minnnal oversight and direcrion, it must be recognized that each implementing organization has different strengths and weaknesses. It is the role of PED account officers and staff to identify these and guide the organizations in light of their individual needs and capacities. b. How can the Neighborhood STAR Program encourage participants to use the loan money? After exunining account disbursements and interviewing the project managers it is apparent that some of the groups who are participating in the Neighborhood STAR Program aze unwilling or reluctant to use STAR loan funds for neighborhood housing or commercial programs. In particular the difficulty associated with using loan money is most apparent among program operators rather than with individual projects. According to loan program operators recourse to them rather than to the end borcower makes it unattractive. They indicate that they are unable to assume that level of exposute for anoffier parties actions. However, it has been detemuned that it is important for the future of the Neighborhood STAR Progam that a certain amount of the money awarded be paid back. In particular by lending most of the STAR funds out rather than granting them the Neighborhood STAR Program provides for its longer term existence, assures the tas paying public that the awazds are investments (and thus will pay back to the community in many 19 ways inctuding monetarily), and gives the participants an additional motivation to develop that which is possibie instead of mostiy experimenring witti the improbable. On this note, what can be done to reimburse a lazger portion of project expenses with loaned money ratherthan grantfunds? c. What can be done to stimulate the number and qnality of multiple year development endeavors? This objecrive is set forth in section III of the Neighborhood STAR Guidelines. The multiple yeaz development endeavor has been pwsued notably with the Phalen Comdor Initiative, the Stutzmann Block Improvement, and the Coordinated Housing Investment Program. What can be done to enhance this aspect of the program? d. What can be done to foster cooperative efforts between development types? As seen in e�ibits on page 4 there are numerous programs and projects that fall within the five delineated categories, but with a few exceptions the pmjects are not designed specifically to complement one another. The projects that do complement one another aze usually commercial developments with streetscapes or residential developments with pazk/playgound facilities. Plans like these aze hopeful and can be used as models, but the Neighborhood STAR Program needs to go further. The Neighborhood STAR Program is targeted to not only make the neighborhoods look better but feel better. The multidimensional proposals can go a long way to protect and promote commimity stability and in tum make the community feel better. 2. Longer-Term Strategic Issues: a. How can the Neighborhood STAR Program facilitate greater cooperation between neighborhoods in commercial and residential development? A coordinated effort nf plan� and development could hring about more successes in Saint Paul neighborhoods. Although each section of the city has unique needs, a unified approach will help mitigate the portable quality of deterioration and blight. There are abundant human resources in Saint Paul neighborhoods and a shared identity througii municipal citizenship. Coordinated steps a�e being taken in certain parts of Saint Paul to capitalize on these conditions and opportuniries. The Neighborhood STAR Program should idenrify these efforts and work with them to revitalize the neighborhoods. b. What should the NeighborLood STAR Program do to increase the number of residential options in Saint Panl? The program is doing an excellent job in meeting the Neighborhood STAR's community development objective of improving andlor stabilizing the housing stock. This can be verified on page 5 which enumerates the houses served in the program. Under the guidelines this community development objecrive is the first cited. The second point under community development objectives recognizes the need for the Neighborhood STAR Program to assist with � , � � � � � , � , � � 3. � � � � I� �! the provision of new housing in Saint Paul. The Neighborhood STAR Program in all it diversity has addressed this objective albeit incompletely. Maintaining this goal is not only important for Saint Paul but the entire region. c. How can the Neighborhood STAR Program ezpand the revitalization process in Saint Paul? The Neighborhood STAR Program is a toal to help business and community groups develop their own capacities to sustain and further advance their neighborhoods. With the help of non-profit foundations and taacpayer contributions these groups have been effective in sustaining and 'unproving their neighborhoods. Over time as conditions in Saint Paul neighborhoods aze further stabilized, the Neighborhood STAR funds should be used to improve the environntent for redevelopment. Additional costs which aze associated with urban redevelopment like remediation could be partially covered with Neighborhood STAR funds. The Neighborhood STAR Program can help level the playing field, so development can occur as easily in Saint Paul as in the outlying azeas. d. How can PED and particularly the Neighborhood STAR Program work in greater unity with other city departments and ufility service providers? The goals of these different govemmental, corporate, and non-profit players are often the same. Perhaps it is just a matter of time lines or different visions that keep the parties from discussing plans and maldng decisions which are mutually informed. The Neighborhood STAR Program has an important opportunity and responsibility to work with the numerous players in order to make Neighborhood STA R proj ects and programs as successful as possible. Recommendations a. Imptementation There are many factors that have slowed the rate at which projects aze implemented. Nevertheless, Neighborhood STAR projects are being completed. The majority of Neighborhood STAR participants did not raise concerns about the Neighborhood STAR Program slowing their progress or failing to assist them in some identified manner. Most of the organizations acknowiedged weaknesses in their own groups which slowed the implementation process. Although the Neighborhood STAR Program did not create these weaknesses, it is in the interest of the program to assist the organizations to implement their projects. The most important thing the Neighborhood STAR Prograzu can do to sgeed 'unpiementation is help � the recipients identify their own strengtbs and weaknesses. Depending on the participant this exercise will vary, but it will be required of all types of projects whether they are individual businesses, community improvement projects, or community-led loan programs. The application t can ask questions to ensure that the projects aze not only useful but that there are people on many ]evels who aze committed to seeing it through as quickly as possible. The pro}ect ideas must be � F�� f fresh yet addressing an ongoing concern—a concern that has reached critical mass . A plan for tke project should be required. It will ask for a thomugh and candid assessment of the organzzation or entity's abilities to catry offthe project. It wili identify possible impasses and offer contingencies. The plan can not be capricious or whimsical but must be grounded in the unwavering, overt, and voiced needs of the residents. The plans must be predicated on the involvement of broad-based public participation. This process has the drawback of being slow, but if done properly most of the deliberation should occur before the funds aze actually awarded. After the awazd is extended the recipient should have sufficient will and community support to implement the project. b. Use of STAR Loan Money Another short-term strategy issue which watrants a recommendation is how to encourage use of the Neighborhood STAR loan money. The Neighborhood STAR Program must requn that when an entiry is awarded grant and loan money ii must use both forms of award. If the participant wants less loan money the grant award must be adjusted down the same rafio. When the Saint Paul City Councii determines the amount of grant and loan mix that will be awarded there should be no changes unless there aze extenuating circumstances. When participants begin to use the money they must be rennbursed in accordance to the mix. In a bid to get loan money out, the Neighborhood STAR Program should also make it cleat that no more money will be awazded to a participant who applies in a later cycle until certain standards of progress have been met c. Multipie Year Development There were two short-term issues highlighted earlier wlrich involve multiple year developments and cooperarive developments in a neighborhood. The mulfi-year developmeats have been occurring through the Neighborhood STAR Program but not in significant numbers. The prograni shouid continue to set a side a designated amount of funding for this type of development. The possible drawback with this development approacfi is that most ofthe applicants do not have the capacity to facilitate a project large enough to require multi-yeaz funding, or if they do, they aze using other funding sources. However, as community organizations and other groups get familiar with the Neighborhood STAR Pzogram and understand the opportunities it can offer them, multi-year development will become a reality. d. Cooperative Development The last short-term issue concems cooperative development within a neighborhood. Cooperative development was identified as an objective for the Neighborhood STAR Program after the program was first established. A cooperative development in this case would be a moderate mixed use development which would include compatible residential and commercial uses. Because of zoning requirements this type of develapment may have strict limits on where it cotild be located. The Neighborhood STAR Program should identify possible sites for tIus type of deveIopment, consult with community organizations, and meet with residents in the area to see if sufficient will e�cists in those neighborhoods to plan and implement cooperative developments. 22 � � , � � � � L� C � � � � � � t� �� e. Neighborhood Pianning In the long run the Neighborhood STAR Program should aim to bring the neighborhoods of Saint Paul together in order to make the highest quality revitalization decisions possible. In order to bridge the gaps the Neighborhood STAR Program should act as a conduit between the neighborhoods. Creating Iinkages and c��cra�ning them will depend on communication, cooperation, and the development of a shared vision. The Neighborhood STAR Program which is a chiefly entrvsted with the opportunity and responsibility to spur revitalization in Saint Paul neighborhoods must identify possible neighborhood cooperation and foster the coordination which is already occurring. An exampie of what is happening in the co�nunity to enable cooperation can be seen in the Hamline-Midway area. Four distinct yet related groups are coming together to discuss a common vision and strategy for the vicinity in the context of the medium- and the long-term. Although these groups (University United, H-MARC, Hamline-Midway Coalifion, and Midway YMCA) aze not faz-flung they represent varied perspectives. The STAR Program should consider the findings of groups like this in order to awazd funds to projects that reflect the interests and concems of larger subsets of citizens than those from a singie neighborhood organization f. Development of New Housing From a land use perspective the vast majority of Saint Paul has been developed. As a result the same development opportunities are not available here as in exutban areas. Redevelopment is often the only oprion for inner city development. Because land in Saint Paul has been used for many yeazs, a significant percentage of underurilized acreage is polluted. The Neighboxhood STAR Program faces a challenge and an opportunity to create new housing options in this environment. Under the Metropolitan Council's "2020 Plan" Saint Paul must have a comprehensive plan. In that comprehensive plan Saint Paul must address new housing oppornznities in order to meet the needs of a burgeoning metropolitan popularion. In one notable project the Neighborhood STAR helped restore the uninhabitable property at 683 Hague Avenue: As a result of that revitalization twelve new housing units in the form of apartrnents are available. A non-profit organization, Project for Pride in Living Inc., manages that renovated property. As the Neighborhood STATt funds grow through sales tax collection and loan repayment, the STAR Pmgam will have the responsibility and capability to tespond to the housing requirements which have been placed on it. It will need to work with private developers and banks to accomplish this gargantuan task. Programs like the Coordinated Housing Investment Project will help establish important relationships between the City and private sector. These relationships will be critical in meeting the Neighborhood STAR Program's community objectives. g. Program Impacts � As stated earlier the Neighborhood STAR Program is a tool to facilitate urban revitalization, but it is not an end in itself. Through its "bricks and mortar" projects it will improve the space in which Saint Paul residents live, but more importantly it will help them enhance the intra and inter-neighborhood � relationships they already have. Moreover it will reinvigorate the relationships between city residents and business people with the construction and lending industries. Akeady there are positive signs that � 23 � the Neighborhood STAR funds are being matched on a Ievel greater than 1 to 1. Perhaps another action that could be considered in the longer-temi wouid be increasing the required match. As stated eazIier this seems to be happening anyway, but it would help maintain the roie of the Neighborhood STAR as a source of additional assistance rather than one of primary assistance. h. Inter-Agency Cooperation T12e last recommendation for tke NeigYcborhood STAR Program in tke tonger-term wouid be to enter into regular discvssions with Parks and Recreation, Public Works, uti&ty companies, and other selected parties about their plans and goals over time throughout Saint Paul. It is important that if the Neighborhood STAR Program eapects projects to solicit neighborhood i�ut that it too is willing to get input from other players including the public. Sometimes impmvements are conducted in an uncomplimentary maaner because parties simply do not talk. The interaction between parties is difficult aY first but will most likely pmvide for the best results and help ameliorate misunderstandings. SWOT Analysis of the Neighborhood STAR Program Strengths: Weaknesses: • Funds can be used for variety of • Program does not fuud project different development types (funds are adminisiration flexible) • Awards are made to a11 geographical • Perception that there is excess parts of Saint Paul regulation and paperwork • Broad base of community support • Recourse • The state legislature approved the tax • Maintenance issue considered only if it generates new City responsibilities • Funding mechanism is pay-as-you-go • Pmfessional staff and support aze available Exhibit 1.11 'rL! i � � � � � � � , f. � � !� � � � � � ' ag - i a� Opportunities Threats • Strong economy • Some organizations aze reluctant to use loans • Realizarion that revitalizarion could • Some project managers do not make help increase residence in Saint Paul their project a priority and in tum lower spatial expansion of the metropolitan area • Some neighborhoods are working • Lunited community involvement in together projects • Role of the STAR Program prominent • Ongoing maintenance of projects not as more responsibility devolves from addressed the national and state levels Exhibit 1.11 continued J. Conclusion In summation, the Neighborhood STAR Program is accomplishing its goal of revitalizing the City of Saint Paul by improving its homes, businesses, parks, streeiscapes, and community buiidings. Although the program is in its eazly stages, it has benefited from the cumulative Irnowledge and experience of its sponsoring department, Saint Paul Planniug and Economic Development. Given the state and locai regulations the program must follow, the Neighborhood STAR Program has been flexible in the manner that it serves Saint Paui taxpayers. The program is and has been committed to improving conditions in all Saint Paul neighborhoods. City officials and PED staff have maintained an open dialogue with Saint Paul residents and community leaders. The program is poised to work proacrively with Neighborhood STAR fund recipients to revitalize Saint Paul neighborhoods. 25 , � �J �� 1 1995 Neighborhood STAR Small Grant Program 95.002 Neighborhood & Senior Citizen Garden GrantAmonnt: $I5,000 , � Aurora/Saint Anthony Development Corp. Description: The objecrive of this project was to install water lines and fencing for three green spaces located at 707 Fuller, 741 Fuller, and 770 University. This project has created two training gardens. The green spaces aze located at 707 Fuller Avenue , and 895 Central Avenue. These gazdens occupy the entire width of the building lots and run the majority of the depth of properties. The garden spots aze fenced in and serviced by water. Raised flowerbeds are located in the improved properties in order to allow senior citizens easier access to ' � � � � � � � ' � ' maintain the plant life. Improvements to two of these lots were completed . Budgetary limitations did not pernut implementation of improvements to a tot lot at 741 Fuller Avenue. Comments: According to Ronald Pauline, the project manager, these gazdens have generated spin-off landscaping efforts in the neighborhood. Mr. Pauline indicated that the training gazdens provide a good environment to learn and share values. The geen areas haue created a sense of pride within the neighborhood residents. Moreover the spaces act as a meeting places that encourage intergenerational intenction. This pmject indirectly serves the entire neighborhood by beautifying the azea. In particular it serves the families and individuals that have volunteered to be part of the training program. The majority of the participants aze African-Amzrican. Fo� Asian families as well as two VJhite families have taken part. The age groups represented aze equally diverse. Contract Compliance: The gardens are located in the prescribed area between I-94 to University and Lexington to Dale. Ali of the participants in the gardening project also reside in this azea. The STAR contract was entered into May 1995. The physical development of the green spaces began ffie same month, and these verdant spaces were completed in 7une of 1997. Mr. Pauline indicated that the STAR funds had no impact on the amount of time in which the project was completed. The STAR funds were used to fence the properties. It was also used to provide water pipes and service to the lots. The money financed the gravel, soil, and lumber that made the landscapmg of the lots possible. The vegetarion for the project was donated. All of the expenditures went towazd 27 , � intended costs described in the contcact. Again the reason that all of the impmvements did not occur � was because the eapense of fhe two Iot impmvements exceeded the original expectation described , in the contract. The project did involve sweat equity. In fact a county program, Sentence to Service, wluch helps � individuals who are in transition fr a criniinal background, volunteered individuat participant's labor for the building of the raised flowerbeds. Although this initial labor was not specifically from the neighborhood, the continued success of tree project will depend on the efforts of vo2unteers from , the neighborhood. �� , � lJ � � � , � L� LJ r z8 � � , � , � , C J � , ' `� •• 95.009 Hamline Midway Greening/Park Accessibility Project Hamline Midway Coalition Description: GrantAwonnt: $14,425 The objective of this project was to increase investment in the area, increase access to Horton Pazk, and foster more stewardslup by using one to one matching gtants for landscaping. The project has two major features: the enhancement of Horton Park and the greening of the neighborhood azound that area. Horton Pazk has been improved with the addition of iwo raised flower beds, three new trees, an additional heavy-duty trash receptacle aud a handicapped accessible picnic table area. The flowerbeds are situated close to the walkways to enable senior citizens and handicapped individuals easier access to the raised beds. This not only allows individuals a better view of the flowerbeds, but it improves the oppornuuty residents haue to plant and nurhxre the beds. The Hamline-Midway Coalirion was not able to put in as many trees as they had intended because the City's Forestry department said that Horton Park had a sufficient number of trees. The neighborhood greening portion of the project was accomplished through grants to 89 residences. As a result of Yhe grants over 200 trees and numerous shrubs were planted. In order to participate in the greening part of the proj ect, residents had to attend a s�+inar which addressed different methods for making the greening possible. � This project helped the coalition make contact with the residents of the neighborhood. It gave the organization an opporhmity to benefit many households in the neighborhood with a moderate amount of resources. The community got more involved as a result of this project. Landscaping ' became a priority to the neighborhood. People began to talk to one another. In fact some friendly competitions arose in pursuit of the most attractive landscape. The project also enhanced the coalition's relationship with the parks and recreafion department. Moreover the project spurred � volunteer activity. Volunteer coordinator for this project, Mazk Granlund, organized citizens to make Horton Park more beautiful and accessible. ' , ' ' Most of the participants are young families. The majority of which are White, but there were some Asian and African-American households which participated in the neighborhood greening. In the Horton Park portion of the project the senior citizens from an adjacent housing shucture played a significant role. Additionally the Boy Scouts made a major contriburion of time, effort, and labor on the raised flowerbeds in the pazk. This project mostly services the residents of the neighborhood, but because of the public accessibility of the park the project could potential reach a wider population. Contract Compliance: The project serves the area from Lexington to Transfer and University to Pierce Butler. The park � and all of the unproved residentiai yards except one aze in this zone. The home outside the azea is adjacent to the boundary of this area. � � � This proj ect has occuned in phases because of the planting season . The contract was entered into on July 1, 1995. In 1995 ten homes were landscaped, in 2996, 40 homes went through landscaping, and in 1997, 39 more had landscaping done. The complerion times varied from one case to other but generally took less than one month. The pazk improvement was begun in 1996. It has not been completed. A sunken tool box and information l�osks will be instalied in the spring of 1998. Generally the budget was used for trees, bushes, planters, a picnic table, and a�ash receptacle. There are a number of reasons why the grazrt is not fully disbursed. First, Forestry would not allow the Coalition to plant more �ees in the park. Second, all participants wanting to get involved in the greeniag project had to attend a seminar . The coalition laiows of eager residents who did not attend the seminat, yet aze interested in the program. Third, the neighborhood is mosfly populated by moderate income worldng families who seem to fia�e trouble ma "m; �;ng the graut. In other words because of the grant match feature one would have to invest a$300 minimum to get $150 maximum grant. Many of the residents appreciate the pmgrant, but cannot or will not use it to its fullest ea�tent. Participation in both elements of this project has been present Uuoughout its implementation. Neighborhood residents have invested sweat equity into this project. Volunteer work has been critical to the success of tUis project. Comments: STAR is too staff intensive to accomplish without allocating pazt of the funds to administration. Homeowner: Joanne Freshwater of 1263 Lafond leamed about the greening project through the community newspaper. She says, "Its great." "There should be more projects like ttus." She thought the reimbursements took longer than is acceptable (2 months). Raised Flowerbeds at Horton Park � 1 � � � ' � •i 95.013 Child Care Espansion & Renovation Neighborhood Honse Association Description: Grant A.mount: $7,309 The objecfive of flus project was to provide space for a day care facility. C1ne room was to be upgraded for youth. A second was to be improved for toddlers. Two other rooms were proposed to be renovated and a food storage azeas was moved. This project converted a space for young children into a child caze room. This modificarion was , accomplished through the addirion of bathroom facilities, fistures, carpet, and the refinishing of woodwork. The second aspect of this project, which was completed, was the consolidation of the food storage area State inspectors had previously indicated that the storage arrangements were not 1 in full compliance with standards. The consolidation unprovement not oniy met state requirements but made operations of the food service easier. ' The expansion and renovation project helped Neighborhood House meet some of the demand for licensed child caze facilities in the neighborhood. With the help of STAR funds the project aiso , ensured that the food served to the children was safe during the storage period. The improvements created employment for 2 part-time employees. This project offers more residents of the neighborhood and lazger community a culturally appropriate environxnent for the care of their ' chiidren. Prospecfive parents who are wairing to enroll their child(ren) in the program feel more comfortable knowing that elements of their ancestral heritage will be honored. Another benefit which may be realized by this pro}ect is that it allows more people to work. In light of low f unemployment and in turn the high demand for employment, these newly available workers will � haue a beneficial impact on the economy. The child caze facility wilI serve 20 children and their families. The food storage aze wiil serve the 2Q new children as weil as serving the current 54 children in the caze facility. The population is diverse. The majority of those who participate are Afi or Aispanic. A few white children aze expected but no Asian children until an Asian teacher is available. Contract Compliance: The irnprovements occurred at the address described in the contract which is 179 E. Robie St.. The service azea for the child care site is the West Side of Saint Paul. The Mississippi River bounds it on three sides, west, north, and east. On the south it is defined by the Dakota County 13ne. Most of the children are from the West Side. A few are from elsewhere particulazly Dakota County. In those cases the families of the children generally had previously lived on the West Side and came back to the azea for child care because it was more culturally appropriate. 31 The comract for the project was signed on 7uly 27, 1996. The implementarion of the project began at that time. All of the capital improvements were completed by Jattuary 1997. On July 17, 1997 the state of Minnesota inspected the new child caze space and on flze same day approved it. The STAR funds aze fully disbursed on flus project. The money was entirely used on the renovation of the child care space and the consolidation and upgrading of the food storage area. Particulaz reimbursed expenses were counter tops, paint, cazpet, windows, a smoke detector, bathroom fixtures, wire shelves, and a walI mirror. The community did donate its time to the complerion of this project. The iTnited Way helped with the volunteer process. It introduced Neighborhood House to volunteers from companies in the community such as 3M, UPS, and Ecolab. The volunteers assisted with much of the e£fort and particulazly helped in restoring the woodwork. Comments: Ms. Fuller, the pmject manager, thought that the funds from the STAR prograui should be more freely and broadly applied to administration costs. Neighborhood House wauted to adxninister tize program by organizing the different jobs necessary to complete the project. They wanted to do this to save money that a general contractor would typically charge. Another concern that she raised was with tiie guidelines. She had a sense that they were being changed midway fluough the process and that they were heing made to apply retroac�ively. She understood this was a new program, and that it had some ctifficulties to work through, but she did not ttiink that changes midway through were fair or efficient. 32 � � ' lJ � ' , � � �g�l�� 95.015 Northeast Business and Development Center Northeast Neighborhoods Development Corporarion Description: GrantAmonnt :$15,000 The objecrive of this project was to cteate a space for the operafion of the neighborhood business association and a police substation . The storefront at 1545 E. Maryland Ave. was gutted and renovated. There were problems with water damage in the space. The problems were intemal and external. In order to ameliorate the situation the plusnbing was upgcaded, the rear door was weather- proofed and the roof was repaired. Next, partition walls were configured and a front service desk, kitchen and handicapped accessible bathroom were added. This project has allowed a po&ce officer to be stationed in the storefront. It has pernutted the Northeast Neighborhood Development Coiporation (NENDC) to be more accessibie and visible to the community. The storefrant provides space for community groups to meet and also is being used as a place to teach the English language to Hmong-speaking residents. The site also functions as an e�ibit area. Artwork by community youth has been displayed as well as design plans for the new Hazel Park NeigJiborhood Recreation Center. Although the new storefront is not verifiably associated with a reduction in crime in the neighborhood, it has in some cases reduced police response times. This is also enhanced by the fact that the officer starioned at NENDC has a bike . This more flexibie mobility option is available because the officer can store the bike at the center. The residents of the neighborhood are indirectly and in many cases directly serviced by the new center. The business associa6on itself is also served. Contract Compliance: The area served is coterminous with the projected service area. The area is north of I-94 and east of 7ohnson Parkway to the respecrive north and east borders of St. Paul. The Neighborhood STAR contract was signed July 25, 1995. The proj ect started August 1996 and ended December 1996. The STAR funds were used for renovation of the properiy. The funds were used fully for this effort but they may not haue covered as many needs as first expressed in the contract. There are records and receipts in the central file which verify the expenses incurred for this project. The reimbursements were for plumbing, elechic, generai remodeling, drywall, insularion, and carpentry. Contractually it was indicated that 300 hours of the sweat equity wouid be contributed to the project. According to Ms. Swenson, the amount of sweat equity donated surpassed 300 hours, but she said t�C� they were not given credit for the excess. Volunteers pmvided most of the labor. The children who volunteered created a mural for the wali of the center. Comments: Karen Swenson, the neighborhood association executive director, indicated that the STAR was important and helped in the pmcess of raising other funds. She also stated that the STAR Program is not useful the way it is being nm. She stated that it is not fair to all sections of the ciry. Case in point Ms. Swenson said no regular STAR projects have been approved in the Northeast section of the city despite need, merit, and a request for money. She said the niles changed after the fact. For example she submitted all the appropriate paperwork for a reimbursement which she received but than the City requested more paperwork. She said she fias no intention of completing the unnecessary additianal paperwork. She indicated that the additionat requirement was bmught about when Norwest was asked to monitor the projects. 3he said they changed the plan and that she shouid not be held responsibie for these additionai requests. Lastiy she thinks that it is initially unclear who holds the authority to make decisions about what can be done within the project. The STAR program encourages you to contact your account officer but they aze not empowered sufficiently to be of significant assistance. The power xesides in the coordinators. Ms. Swenson believes that the officers should be empowered. 3he sait3 that the Neigltborhood STAR coordinators shouid not assign accounts. Perhaps some other arrangement shouid be reached. According to the Neighborhood STAR Program's procedures the project accounts are assigned to the officers by PED management and not the coordinators. Service counter at Northeast Business and Development Center 34 , � [J �� l� j� .i 95.016 Open School Playground Independent 5chooi District 625 Description: Grant Amonnt: $10,000 The objective of this project was to create a playground for a public school which serves students k-12. It was planned to provide a safe and well-constructed area for the chiltken at the open schooi to play. The majority of this pmject has been implemented. Previousiy the Open School had an empty field ' available for outdoor fitness and recreation. Because of this project there are more acrivities in wluch the students and nearby residents can engage. The enhanced piay area is located on the north west comer of the properry at 90 Western Avenue South. The playground has an eight seat swing � set, two siides, and a dome shaped jungie gym. All of the equipment sits on a base of sand which is surrounded by lumber. Additionally a fuli size basketbali court with two regulation height goals , has been added for the older children. Between the playground and the basketball court a foursquare court has be located. There are srill plans to install two more basketbali goals and four park benches. 1 As a result of this project the Open School has been able to augment the variety of opfions offered thorough its physical fitness program. Indeed this variery has helped improve the program. Additionaliy the piayground has been a welcome expansion to the schools recreation facilities. It ' aliows children to experience improved recess activity. The neighborhood has also been impacted. There are not any playgrounds within ten blocks. This play area allows all segments of the neighborhood convenient access to a well-equipped recrearion area. ' This project serves the Open School and the surrounding neighborhood. Other educational and care facilities make use of this improved space. Jennifer Diederich, the project manager, said she knew ` that the neighborhood Montessori, the Salvation Army, and a few day care centers use the Open � School Playground. In addirion numerous residents of the neighborhood use the recreation facilities. � The playground serves 300 kids from the Open School, 40 from Montessori, and about 15 children from community day care centers. Contract Compliance: Ms. Diederich indicated that the playground serves the westem edge of downtown Saint Paul. She said its service area extends from Kellogg to St. Clair and from I-35 to West 7th Street. The project was implemented on the site it was originally proposed. The STAR contract was sia ed in August 1995. The project began in September 1995 and is expected to be completed in October 1997. The STAR funds were used to purchase lumber, two goose neck basketball poles, 4 backboatds, sand, a jungle gym, and the asphalt basketball court. The funds have not heen entirely used. Upon. 35 looldng at the reimbursement forms far this project it appears that the section for sweat equity was not completed properly. When this component is added in, the project valne increases and the amount of re"unbursement possibly increases. As of September 1997 a STAR coordinator worked with neighborhood staff on the problem. As soon as the match and reimbursement request is submitted the project account will be fully eacpended. This project involved at least a 30% sweat equity match from the Open School and its pazents. The volunteers essentially installed atl the features offhe playground with the exception of the basketball court and the aggregate field. Comments: Ms. Diedezich said that the match was tough. She also said that funding the pmject was difficult in light of the fact that the STAR program reimburses rather thau advances money far the project . Fund raising was difficult for the Open School. Everyone was burned out from the eaperience. Ms. Diederich not only had to ask pazents for their financial support and time but also their labor. After all this she does not think she was given full credit for all the labor that the parents supplied, and she had valued their labor below the acceptable hourly amount of $ l 0/ttour. Tn order to make the process cleazer and faster Ms. Diederich thinks there should be a book available that guides one thmugh the process step by step. She said the book could have cazbons in it so records could be kept for internal and external purposes. 36 Open School Playground 1 1 , � ' I_ J ' � ' ' �$- �a� 95.017 Reinvesfing in Tomorrow's Communiries People's Network of Minnesota Description: Grant Amount: $15,000 The objective of this program was to provide up to $3,000 grants to homeowners in the Railroad Island Area. This program has not gotten under way. The Peopie's Nerivork of Minnesota (PIVNn distributed flyers in October of 1996, but only five parties made serious inquiries into the project. The current project manager, Vang Moua, said there were a number of reasons he thought that progress had not occurred. First, the residents do not want to take out loans to leverage the grant especially if they must use their house as collateral. Another impediment is that many residents have hi� debt rarios, so they cannot get the leveraging loan. Srill another barrier has been the fact that some of the interested parties were senior citizens and did not have sufficient income to take out a loan for the necessary matching portion of the program. Mr. Moua believes that the size of the individual allotments per house described in the contract of $3,000 needs to be revised to $S,OOQ. Ae thinks this amount will be more attractive to potential participants. The final hold up has been the bid process. He said many of the interested parties think the bid proposals are high, and they continue to search for lower cost bids. Addresses of some potential participants: 745 Bradley St. 765 Jessie St. 585 Payne Ave. Because no improvements have taken place as a result of the STAR grant project, Mr. Moua said there has been no achievements in this project nor any unpact on the larger community. Cunently nobody is being served by this ptogram. The few potential recipients are families that occupy the targeted homes to be unpmved. In ]ate July 1447 the PNNI will distribute flyers again to inform the neighborhood about the funds available through the STAR grant to the PNM. Although nobody has been served, the PNM is still targeting the geographic area that it proposed to serve in its contract. The area is Bush and the railroad on the north and west, Upper Swede Hoilow on the east and 7th St. on the south. There is no progress schedule as such because no improvements have been made or even started. Mr. Malo believes that if the allohnent per house is increased that it will generate more interest in the program and in turn something will be accomplished. STAR funds have not been utilized yet, but Mr. Malo believes this will change after the n�i flyer campaign. 37 �l Mr. Malo believes that recipient participation in the improvement will be limited because many of ' the interested parties are elderty and not able to exert themselves. Other hindrancas to participation � aze lack of volunteers and lazge amounts of time demanded from potential recipients. LJ ' � ' � � , � � cf�'.? ' i �i lj � � ,' � � � ' � q�- cag 95.019 Riverview Area Streetscape Design Improvement Riverview Economic Development Association Description: GrantAmount: $14,000 The objective of this project was to restore murals and 20 metal art fabrications in Riverview. The project was to compieted using the skills ofyounger peopie with the help of local artist. The project has restored five murals. These murals are over 20 years old and depict Latin American themes. Additionally the project included the design, creation, and placement of 20 signs which idenrify and celebrate the Riverview community. The signs display the sun over the Mississippi River. Two of the original three artists participated in the effort. Another two mentor artists were added to the project. Each mural was assigned two students. The students acted as assistants in the restorarion effort. The students were selected from a program called Teens Networking Together (TNT)• Anne Briseno, project manager, said that this project has acted as a catalyst for other projects. Part of the spin off was a new mural on the �terior wall of El Burrito facing State St. She indicated that the project has retained and restored the continuity of the community. The project has instilled pride in the community. There have been no cases of vandalism or theft connected with this project. This project services the entire community. Its benefits are visible, accessible, and convenient to experience. As far as direct impact, the student population seemed the most fully served by the project since it allowed and solicited youth involvement. Ail the peopie directly involved were from the West Side of St. Paui. Approximately 50% were Hispanic. ContraM Compliance: The area served was coterminous with the small area plan. The boundaries aze Concozd at the entrance of Highway 52 on the south to Wabasha at the north end and Wabasha at Plato to Wabasha at Concord St. and Robert at Plato to Robert at Concord St. The Neighborhood STAR contract was signed on July 25, 1995. Within 5 weeks the project was complete. The STAR program had no effect on the rate of complerion. The actual budget was used for equipment, brushes, the signs, artist fees, and the charge for the Deparlment of Public Works to hang the signs. In particular it cost $90 per sign for installation. The central file does show a reunbursement request form, and all the necessary receipts. This project involved a significant amount of sweat equity. 1`he logo for the signs was developed by one of the artists. The designs were presented at a public meeting and a vote for the best design was cast. 39 ' 19.95.022 Grand Avenue Summit Beautification Grand Avenue Bnsiness Association Description: GrantAmount: $I5,000 ' The objective of tkus pmject was to ereate a small pedestrian plaza and meeting azea on Grand Ave. AdditionaIly a bike rack was to be pIaced along Grand between Oakland and Ayd Mill. This project has been implemented. Fifteen szngle and double bike loop racks have been installed on Grand belween Dale and Le�ngton. Additionallq a small brick plaza has been created at the corner of Graud and Victoria with benches and plants. Some planters have been placed in front of businesses along Grand as part of this project aLso. The community and businesses have been positively iffipacted as a result of tltis project. First the impmvements of this project make the area more attractive and conducive to commercial actavity. Second it has provided safer and more abundant bike parldng. In an area with limited parking this adc3irion helps make the commercial strip more accessible . Becavse of this project the population of the azea is better served. In particulaz it helps cusfomers, business owners, emptoyees, residents, drivers, and bicyclists. Depending on the day and time of year this corridor serves 5,000 to 30,000 people a day. Contract Compliance: The placement of fhe bika racks followed the designation in the contaact. All improvements were to be located between Ayd Mill and Oakland. It was originally proposed that alI the benches be distributed along Grand Later it was reconsidered and the benches were placed in the brick pIaza. The contract was signed on October 27, 1995. The work on the project began in November of 1995. It was completed by November of 1996. The project took three months longer than anticipated. There were a number of reasons why the project took longer. First, tke lead volunteer had a serious illness in the family. Second, there was some difficulty getting multiple bids. Another delay was the bike rack pernut procedure of the public Plaza at the comer of Victoria and Grand I� [�17 �. �� l�B � works department. Beyond these delays the Gtand Avenue Business Associafion (GABA) had trouble soliciting donated labor and retaining key staff: � The STAR funds were used to buy five benches, fifteen bike loop racks, and bricks for the squaze on the corner of Grand Avenue and Victoria Street. � Most ofthe work on this project was contracted out. Sfill volunteers did donate their labor in order to meet the adxniuistrative requirements of the project. � � l�� 41 � 95.024 Thomas-Dale Handyman Fix-Up Project Thomas-Dale Biock Club Grant Amount; $I5,000 � Description: The objective of this project was To identify and repair the exteriors of owner occupied senior citizens' homes. The repairs were to be limited to painting and maintaining the safety of resident access to their homes. This project has provided safer access and aesthetic improvements to 12 homes in the Fmgtown neighborhood. A.s a result of the work seven retainiug walls were installed, a handicap ramp was added to the home of a physically challenged individual, stairway accesses were improved and in some cases replaced. The addresses of the properties aze as follows: 803 Thomas Ave. 597 Charles Ave. 967 Chazles Ave. 390 Edmund Ave, 809 Thomas Ave. 958 Sherburne Ave. 653 N. Westem Ave. 550 Edmund Ave. 844 W. Miunehaha Ave. 840 W. Minuehaha Ave. 682 Westem Ave. 81 Z Van Buren Ave. The proje�t has helped motivate the residents to improve their homes. Johnny Howard, the project manager, said, tlus project has changed the `whaYs in it for me attitude that was in the neighborhood." Now people will not only work to impmve their own properry, but he tlunks overall volunteer activity is on the rise. There is a spin-off effect, and it can be seen throughout the neighborhood. One resident adj acent to 809 Thomas Ave was so inspired by the improvements fhat she stazted landscaping her yazd. Another grant recipient Lily Hollisworth says she Iikes the change that the retaining wail has made. "It looks better, and it is safer." Senior citizens are primarily the recipients of the grant funds through this handyman fix-up project. Seven of the participants aze Wlute, three aze African-American, and two aze Hispanic. Contract Compliance: All of the improvements occurred between Westem Ave on the east, Lexington on the west, Fierce Butler on the north, and University on the south. This is caterminous with the contractually designated zone. The STAR contract was entered into June 30,1995. All the progress on the improvements occurred within three months, from June 1996 to September 1996. Because the STAR program issues � 42 � � � � �� reimbursements rather than prior payments, it slows the process of getting the necessary materials. The Thomas-Dale Block Club is already strained. When they provide up-front costs out of their program it jeopazdizes their other services. Addirionally because they can oniy divert a small poriion of funds away from the club the process of neighborhood improvement is slowed because after complefion of the first improvement they must wait to get reimbursed before starting a second home improvement. � The STAR funds went entirely to unprovements wluch make the residences of the Frogtown Area safer. Through the project, movement in and out ofthe homes was made easier. As a result not only were the resident yazds safer but so were the sidewalks. The new retaining walls will keep excess � debris off the sidewalks and will provide for safer passage. The level of public participation has been significant through this process. The Thomas-Dale Biock Ciub has organized community participation in the program. Volunteers haue helped to get the projects completed. Because of this feature of the project, more improvements have been able to � occur despite scarce resources. � �� L] 43 � 95.026 Stutzman Block Initiative Upper Swede Hollow Neighborhood Association Description: The objective of this project was to renovate the Stutzman Bldg. The monies were to unprove its blighted appearance. As a result the project was to provide commercial space, residentiai rentai units, and the Upper Swede Hollow Neighborhood Association office. (I7SHNA) This project included the renewal of part of a commercial space in the Stutzmann Building at 725 E. Seventh St. The commercial space is currently leased to the Swede Hollow Cafe. Tke first phase of rehabilitation involved the gutting of what was a residenrial unit to make way for a restaurant. In thai pmcess most ofthe features of ttie space were replaced such as the electrical system, the air conditioning, the store front, the kitchen, and a bathroom wluch complies with ffie Americans with Disabilities Act. Tlus rehabilitation project kelped provided the Upper Swede Hollow Neighborhood Association with an opportunity to demonstrate to the neighborkood that speciaiized, nonfranchised commercial activity is viable in the Dayton's Bluff Area. It permitted tke Association a chance to let local residents see how historical preservation is possible and even useful. It also generated two fu11 time and 2 part-time positions. Residents of the neighborhood demonstrated, as well as, witnessed the commercial strength of their neighborhood. Cazol Cazey, the pmj ect manager, stated that there were spin-off benefits. For instance a redevelopment project is happening near the cafe at the intersection of Maria and Sixth. Another spin-off is that the cafe is using some ]ocal inputs such as Toasted Bread products and produce from gazdens in the neighborhood. The cafe serves a diverse population. About half of the customers live in the neighborhood. They make up the majority of the non-meaitime transactions. The other half is generated by people who work or go to school in the area. The food service facility functions as a meeting place and a forum for casual social exchanges. Contract Compliance: The STAR contract was entered into on JuIy 26, 1995. This first phase, the initiative, started April 1996 and was completed in July of 1996. This was withiu the period described in the coniracT. Tke 1995 sma11 STAR funds were used to unpiement the capital improvements to the property described in the first paragraph. Scope of work statements and receipts aze present in the centrai file. They indicate tl�at STAR funds were used to pay for piumbing, etectrical, heat and air conditioning, and other general contracting eapenses. This project match involved $3,630 in labor and $3,000 in goods and in-ldnd services. Much of the participation came from Sentence to Service which uses the labor of criniinal offenders to improve tfie community. GrantAmount: $15,000 , � � � � � � � i� �� Comments: Ms. Carey thought the smali grant process was easy. She appreciates how the STAR Board spreads the awazds throughout the city. She tiunks that because of this arrangement that her small applicafion are more successful. Ms. Cazey also had a concem about the amount of time it takes to get a reimbursement. She said that it took over 60 days to get here first reimbursement. In her case it was all right because the project had interim financing. � Swede Hollow � Cafe � � � � � 45 f � 95.027 Walker-West Music Academy Music Garden WaIker-West Music Academy Description: GraufAmouu�$I5,000 � The objective of this proj ect was to create a small gazden and a performance azea. STAR funds were designated for landscaping, earthmoving, and lighting/electrical. This project has been unplemented. The building lot to the west of 777 Se1by has been developed into a music garden. Formerly flvs lot was occupied by a deteriorated structure. The properiy went into taac forfeiture, and the city of Saint Paul assumed control. The city proceeded to raze the building on the property. The city has extended a rent free 10-year lease to the Walker-West Music Academy on this adjacent forfeited properly. In the front portion of flte property there aze perennial shntbs and trees which line a path and four cutoff coves. These circulaz coves are being developed in order to set up musical instruments according to their fanuly type. In the reaz of the lot the area has been maintained as open space in order to stage concerts. The space is partially occupied by a raised wooden deck. The stage was not purchased using STAR funds. There is no lighting or electrical service at the music gazden. Because of ttris project the musicians at the academy have a place to play outdoors. Mr. West, the artistic director, is hopeful as tfie garden and stage are improved that a musical series will be established over the summer season. The community has been provided with a beautiful area to enjoy the gospel aud jazz music of the academy says West. The gazden serves the members of the academy as weIl as the local community. The academy's total enrollment is 500. Mr. West said although the community now appreciates the garden from a distance better accessibility will be developed into the garden and actual direct use of the garden area wi11 increase. Contract Compliance: The green space was established on the Selby lot as described in the Neighborhood STAR contract, Most of the people who use the garden live or work in the area between downtown on the east, Lexington ott the west, I-94 on the north and Grand on the south. The contract was entered into October 1, 1995. The work was started and completed September 1995. Nothing hindered the rate of completion. The project was completed within the contract time specifications of 8/1/95-1 Ll/95 but it appears that the stage landscaping set ta be fmished by 6/1/96 never occurred. The STAR funds wera eannarked for the plants, design, landscaping, and paths. .,, � � � q� � la� There was volunteer labor provided by academy members. Initially 35 members volunteered to assist with the project. Another 20 volunteers showed up that were not scheduled. Beyond volunteering rime and labor some participants volunteered to provide lunches for everyone. � City staff requested paperwork for reunbursement for ttus project several times. Mr. West attributed the delay to the fact that they did not have enough administrative staff, and that they lost the staff member who was working on this project prior to the compietion of the paperwork. It was also � expressed that the effort to get matching funds was difficult. Mr. West seemed to tl�ink that much more work was necessary to make the garden truly useful. First, he thinks that an entrance shouid be made from the parking lot of the academy into the garden. Because of elevation differences a set � of stairs or ramp would be necessary. Second, he thinks that white lights should be run through the trees on the western side of the property. Third, Mr. West believes that a retractable cover should be added to the stage to keep the sun out of the musicians' eyes. Lastly, the artisric director said that � seating is necessary for concerts and should be added to the open space in front of the stage. � � � � 47 �l 95.030 WORC on Bikes Workers Organized to Regain Confidence Description: The objective of this proj ect was to renovate space in a house to serve as a bike shop. Its objecfive was to place bikes on the street for the community of use. This project is achieving a goal of teaching work habits to young people in the Frogtown neighborhood. Currently 12 young people work at the bike shop, They are leaming to repair a wide variety of bicycle types. Additionally they are leaming other aspects of the business such as sales, inventory, customer service, and labor nkwagement. During a visit to the shop, all ofthe participants were working in an indixstrious and disciplined manner. The project is meeting its objective of training young people for succeeding commercial opportunities. Two of the former bike shop workers have gone on to work at commercial bike shops in the azea. Physically the building has not been greatly renovated, but they ha�e it functioning pmperiy for this designafed use. They have fout repair racks for the bikes, a long fhe walls they have racks to store bikes, a service counter, a cash register, numerous bikes, and the necessary repair tools. Internally the project has allowed the participating youths an opportunity to develop their talents. It has provided bikes to the communiry at a reasonable price. Moreover the project has placec3 yelIow bikes in the neighborhood in order to increase mobility and decrease the rate of bike theft. Its presence is positive in the neighborhood. There are frequent cases where a child will accompany a guardian to the adjacent supermarket, an@ the child will end up visiting the shop while the adult is shopping. Beyond offering this unique opportuniry to develop young peoples' tatents, this shop provides affordable bikes and service to this less affluent neighborhood. The people served are numemus. They not only include the customers but also the workers. The customers and workers are East Asians, African Americans, and Whites. The zone served is Grand Avenue to the railroad and I-35E to Lexington. Contract Compliance: The project to convert the space at 749 N. Milton into a bike shop started in January 1996 and was completed and opened in May 1996. 17us happened with private funds which can be reimbursed with STAR fiznds. Tfie Neighborhood STAR contract was entered into July 26, 1995. The STAR funds haue not been utilized directly because they have not been disbursed, but according to Mr. Williams the reimbursement request had been mailed to the city in 1996 and they heard no retum response from PED. I advised them that the paperwork should be resubmitted. As of August 29 no reimbursement request had been received from WORC. PED staff sent the appmpriate request form with offers of assisYance but have gotten no response. GrantAmount: $3,180 � � .; �� f�8 The neighborhood has been involved with all aspects of this project. The customers and workers � come from the neighborhood. Additionally the Center for Employment Training (CET) at the local high school has given assistance to the program. � The prograui director, Andy Williams, seemed positive about the STAR program despite not receiving any reimbursements. � � � � � � � � 1 .. �� 95.031 The Espress Bike Shop The Youth Express GrantAmonnt: $10,340 � Description: The objective of this pmject was to create a bike shop that would provide the community with physical unprovement, economic development, and opportunities for young people. STAR funding was designated for renovations to the shop. The bike shop project has been fully implemented. An abandoned service station at the corner of Snelling and Marshall, 234 N. Snelling, has been converted to a bicycle repair and sales store. The store is chiefly staffed by young people ages, 1S and 16. The space is leased from Liberty Bank at a nomivai monthly rate. According to the project manager, Randy Treichel, the former gas station was a disaster. Youth Express gutted the buitding. Tlris was necessaty because of water damage and years of acciunnlated grime. The original building kad an office and two garage bays. The refiubished building maintained this same office space, converted one of the bays to a showroom, and the other bay to a repair shop. At this site, discazded bicycles aze restored in preparation for sale and customer bikes aze repaired. Through this project Youth Express has been able to offer young people an opportunity to leam general and more technical job skills. T'he skill azeas that the bike shop tries to build aze: repair, accounting, sales and customer service, advertising, and business administration. According to Mr. Treichel the strength of tYris project is the fact that each of the young trainees gets e�tra time and direct attenrion from staff. This is something that most entry-level service positions do not offer. The efforts wluch aze invested in the young participants not only make them self-reliant and assets to the labor force but more complete citizens. The neigilborhood has aiso benefited as a result of the establishment of this bike shop. The shop has found a niche in the low-end bike sales and repair mazket. The community is reaping the benefit noY only through the quality service provided at the store, buf through the training opponunity that the young people are getting. The vacant properry that the shop sits on is no longer a drain on the avenue. In fact a driv�tUrough coffee shop has been set up in the parl�ng lot. Activity like this recoafirms the positive impact that this community bike shop has. Over time there have been 25 trainees in the program. Currently thete aze 12. Of that number ten are ma1e, and two aze female. Racially/etanically seven are African- American, two are Wlute, one is Hispanic, one is Asian, and one is not reported. Most youth participants meet federal at-risk criteria and qualify for wage subsidy through the St. Pau] Center for Employment and Training. Participants who do not qualify aze paid from Express Bike Shop sales. The project has served many people, most of wkom aze living in Saint Paul. Since its inception the shop has restored over 700 bikes for later sale, and repaired numerous bikes for atea residents. In fact repairs cunenfly comprise a larger portion of the revenue generation than do sales. � G�1] � � _� � � � � � � � � � � �S- la� Contract Compliance: Ttie bike shop is located at the site agreed upon in the contract. It serves Distact 13 and sutrounding azeas. The Neighborhood STAR contract was entered into July 26,1995. Construction for the commercial rehabilitarion began in April 1945 and ended Iune 1995. The Neighborhood STAR Program's process did not unpede the progress of the development, yet the cyclical nature of the program made it more difficult to access funds eariy in the construction season. The STAR funds specifically paid for sheet rock for the walls, elechical work, windows, and interior and exterior windows. The central file verifies these reimbursable eapenses. Other work on the site was conducted by the current owner and the former tenanYs parent company, Amoco. The owner, Liberry State Bank, repaired the roof, and Amoco purged the azea of contaminants. According to Mr. Treichel the roof is leaking again due in part to unseasonably large amounts of rain. He is presently attempring to get funding to properly repau the roof. There was community involvement during the unplementation phase of this project. Axea youth and others cleaned and gutted the vacaterl gas station, They also painted the interior and exterior of the buiiding. Time and materials were donated by local businesses. Comments: Kurt Oldham, store manager, indicated that this venture aliowed him to use his college majot in education to train youth in meaningful ways. Because tranung is on the job as we11 as off Mr. Oldham can guide the participants until both he and the trainee feel confident that the requirements and skills of the job are well understood by the young person. Falaq, an associate, said that he liked the environment at the shop. Although his favorite job at the shop is sales, he also gets something out of leaming and doing all the different jobs. Falaq had worked for Youth Express during the suminer of 1996. He worked in the Youth Express lawn care business. Because of his commihnent and iniriative he was invited to be a trainee at the bike shop, and he gladly accepted. He said this job allows him to learn more things, and he likes that. A1 Martin, assistant manager, said he found out about the bike shop opporhuxity after recently coming back to Saint Paul . A1 had been out of town for a while, and he wanted to work with bikes and youth. This position has given AI a chance to fulfill that goa1. 51 � � � � � � � � q�-ia� 1995 Neighborhood STAR Grant and Loan Program 95.10A Aesthetic Uplift and Senior Citizen Assistance Anrora/Saint Anthony Bevelopment Corporation Description: Loan Amount: $100,000 The objective oftlus program was to provide approximately lO loans up to a maximum amount of $15,090 at 2°!o interest for exterior nnprovements between Dale and Crrotto / University and St. Anthony. This program has improved four homes. The nnprovements have been primarily to the exteriors and include new roofs and porches. Each of these improvements has been impiemented. An additional home improvement is pending. The project will unprove at least five more homes, and the program manager, Ronald Pauline, is pursuing that currently. The addresses already served are: � 649 Aurora Avenue 647 Fuller Avenue ,� 655 Central Avenue 713 Saint Anthony Avenue � � � According to Mr. Pauline this STAR project has stabilized the neighborhood housing market. It has enabled the residents to make an invesiment in their neighborhood. This project is serving four households directly with the improvements. The participants were characterized by Mr. Pauline as long term residents. Atl are African-American. Contract Compliance: Every home that was assisted was located in the contractually designated eight-block area. The boundaries of the area aze Dale on the east, Grotto on the west, University on the north, and St. Anthony on the south. The STAR contract for ttris program was signed on March 1, 1996. Each of the improvements had a different rate of completion. On average the prepazation process for each amprovement was four months whereas the speed of construction and complerion was about 3 months. The STAR funds have been used for facade improvements. Aithough the entire allohnent for this STAR project has not been expended, Mr. Pauline says the funds will be e�austed by Mazch 1998. 53 The majority of the work has been done by contractors, but a few of the unprovements involve sweat equity. Comments: Mr. Pauline thought that administrative funds should be a�ailable as part of a STAR award. He also believed that tke City's servicing agent, Norwest Bank should be different. He tliinks that Norwest Bank should not directly receive the interest and priuciple. Besides charging fees for servicing the loans Nonvest may be benefiting in other ways. This program should mostly be dedicated to benefiting the neighborhoods. John Allen, the resident at the improved property at 649 Aumra Avenue, said the STAR Progratu is a great oppomwity for the neighborhood. It needed some spmcing up. 54 � , � � � � � � � � � � � � � �' i . i 95.113 Dayton's Blnff Neighborhood Housing Services STAR Purchase Program Dayton's Bluff Neighborhood Honsing Services GrantAmonnt: $9Q078 Description: The objective of this program was to provide gap financing to rehabilitate owner-occupied homes. The loans were not to exceed $15,000 or 120% of the appraised value after the renovation. The foYm of the loan was designated to be for 10 years, forgivable, and deferred. Dayton's Bluff Neighborhood Housing Services (DBNHS) has financed and rehabilitated five homes. Another home has been approved for gap financing a decision on the finai home is still pending. Besides marketing this program directly, DBNHS used real estate agents as a link in the effort to inform the public about the program.The agents attended a seminar which helped them understand the program and its requirements. Two of the unproved houses have been made possible through the marketing of real estate agents. However the primary contact point has been through DBNHS's loan outreach. Three of the rehabilitarion projects were less than $20,000, and rivo were more than $2Q000. Two of the shuctures went from rental status to owner occupation while another went from vacant to occupied. The completed homes are: 1016 Euclid 663 East Fourth 915 East Fourth 853 Mar aret 737 Wilson The project has given DBNHS a tool to service the community through the gap financing provided by the STAR funds. Because of the limited scope of the project and the fact that other housing program activities were taking place in the same azea as these projects, James Erchul, project manager, said he was uncertain as to the degree of spin-off benefits that could be directly atiributed to the 5TAR Program. Mr. Erchul aTso said that the success that his housing service has had enabled it to be selected as a participant in the Coordinated Housing Inveshnent Prograui (CHIP) STAR project. The DBNHS project has served five households, To this date all of the participants are White and are not seniors. Contract Compiiance: Ali of the recipients of STAR funds were within the projected area of Johnson Fazkway on the east to Mounds Boulevard on the west and Mississippi River Bluff on the south to the Butlington Northern Railroad Corridor on the north. The contract was signed in March 1996. It is set to expire in Mazch 1998, Most of the projects have been accornplished during the building season of 1996. Each project is taking about three months. One of the projects on Fourth St. was delayed because the proj ect was waiting for a custom door in 55 order to comply with the reqnirements of the heritage preservafion district in which it is located. The STAR program ffid not affect the rate of rime that the projects took. Funds were used for facade, electrical, and plumbing improvexnents. The facade improvements included ruofs, porches, windows, and siding. Owner's sweat equity was not aliowed during the construction work because the first mortgage lenders did not want to allow it due to the inherent risks involved. Comments: Mr. Erchul believes more of the funds in the STAR progratn should be atlocated as grants. Moreover the size of the gants should be increased. This would allow the progam to more meaningfully impact a target azea. He aiso ttrinks that tfie loan funds could be set up more fle�bly. The temis of the loans are too stringent. When he considers the regulations that aze placed on city monies, he believes that any benefit from lower interest rates is mitigated significantly. Refurbished Home In Dayton's Bluff �� t� 45.115 Payne Avenne Commercial Gateway East Side Neighborhood Development CorQorarion Description: Loan Amount: $80,000 The objective of this program was to provide low interest loans for interior improvements, facade grants, rent forgiveness, and redevelopment of blighted building. This project has not been implemented. During the 7uly 1997 STAR interview with East Side Neighborhood Development Corporation (ESNDC) the amount and extent ofproject preparation was uncieaz. Mike Anderson, the director, indicated that the project will be executed as set forth in the contract description. Mike Anderson said the STAR program was a welcome addirion to financing options available to non-pmfits. He said it was a useful program that enhances ESNDC. For the lazger community STAR has renewed confidence. The population who is eapected to be served includes an Asian, a Hispanic, and 7 White applicants. Of those applicants 5 are 50% above the poverty line, 3 aze 50%-80% above the poverty line, and i is 80% or more above the poverty line. Contract Compliance: The geographic area served has coterminous boundaries with the region set forth in the contract. The � area is Maryland on the north, Arcade on the east, the Burlington Northem Railroad on the south, and Payne on the west. � Mike Anderson did not offer details on the completion fime of the project but as of 3uly 1997 nothing has been completed as a result of the funding of the ESNDC Payne Avenue Commercial Gateway project. The fact that over 95% of the original loan awazd has not been disbursed is � because ESNDC's staff believes that there are more agreeable incentives offered through the State and other government programs. The $1,200 of STAR funds that had been used were used on a fee. The reason that this proj ect has not been implemented is not only the amount of interest charged, but �; according to Mike Anderson under the current STAR program CDCs such as his must take responsibility for the repayment of the loans that they provide to individuals and businesses. He said � if a business defaults on the loan, it becomes the responsibility of the CDC to repay the loan. The CDC has no assets to speak of and has no ability to make good on the obligarion. LJltimately the characteristically high risk of the business loans and inability of the CDC to back them up causes I the CDC to avoid using STAR loan funds. He felt that the terms of the 3TAR loans generate disincenfives. He also said that he had heard that the progtam was set up in a way that would enswe failure. Then pethaps more of the money would go to the civic center project. Finally Mr. Anderson � thought that the city should assume the risk for the loans ESNDC makes. 57 � In regard to the STAR program generally Mr. Anderson thought: • it should be more focused on commercial development • stimulate the neighborhood commercial markeY � � • operate more like a bank yet respond to all sections of the city fairly, � be more flexible about project changes and yeaz round access to funds(limit or eliminate cycles)make it a continuous and continuing program • make funds more attracrive by creating better terms and incentives � • reduce the liabilities potentially visited on intermediate organizafions like CDCs. � � � � � � � � � �� m � � � � � � � � � � � � lJ 9g- i ag 95.116 Strong Neighborhoods=5afe Cities East Side Neighborhood Development Corporation Payne/Phalen District 5 Planning Council Description: Grant Amonnt: $10�,000 Loan Amount: $ 35,000 Seed Capital: $ 25,000 This project had three components. The first was home improvement grants. The second was commercial loans. The last component was the construction of a gazebo in Sue's Park. This project has been partially implemented. One business was assisted through the seed capital fund program. Two homeowners were helped through the home irnprovement grant program. The gazebo was not built. It was expected that 1-5 business would be heiped through the seed capital program. Aithough one business was served, only a small portion of that fund was used. The loan money which was expected to help businesses ixnprove their space and for new business to move in was not used. The grant recipients aze located at 700 E. Cook Ave. and 708 E. Cook Ave. The seed capital recipient is located at 790 Case Ave. Most of the loan funds may be retumed, Not much of the grant funds have been used, but the East Side Neighborhood Development Corporarion (ESNDC) intends to make a concerted effort to get all the funds out. 7n addition to the two grants that have awazded in the community, 9 more have been approved, and 10 are pending Because of the limited use of funds in this project the benefits of STAR money mostly accrued to the actual grantees or bonowers. This project did �ot provide the catalyst that was expected from STAR projects. As indicated above there were three fund recipients in total. The two homeowners aze white, and the business owner is Asian. Contract Compliance: Ali of the funds were used within the designated contract azea. The contract azea is from the comer of Edgerton and Whitall: north on Edgerton to Maryland, east on Maryland to Mendota, south on Mendota to Geranium, west on Wells to Payne, south on Payne to Whitali, and west on 4Vhitall to Edgerton. �, The conttacts were entered into at different times for each component of the project. The business portion began in Apri11995. The home improvement component had a signed contract in April 1996. The gazebo contract was initiated in February 1996. The progress schedule has � not been met in the case of the gazebo. It was eapected to begin in April of 1496 and end November of 1996. It has not been implemented. The home rehab progress schedule was contractually stated to begin March 1996 and end February 1998. It appears that they will not � meet ttris deadline in 1998. Only part of that aspect of the project will be implemented. The business loan and seed capital aspect of the project have the same start and finish dates as the home improvement portion of the project. Once again this does not seem to be conforming to ' the progress schedule highlighted in the contract. Another significant delay of the project 59 stemmed from the fact that the financial arrazigements of the pmject were complicated, and it took longer to get the contracts signed as a result The STAR funds were used for exterior and interior home unprovement as well as for seed capital business improvements. The reason that the &znds were not fizlly disbursed is becanse ESNDC lost organizational capacity after many members of its staff Ieft the organization. Comments: Most of the feedback came from Sean Kershaw and Mike Anderson. This case has the same loan program concerns that were discussed in the previous account report (95.115) Renovated Home on St. Paul's East Side .1 � � � � � � � � � � � � � � � ��-�a� 95.125 H-MARC Exterior Renovation Hamliue-Midway Rehabilitarion Corporarion Description: Grant Amount: $45,000 The objecfive ofthis program was to provide leveraged grants that would be available on a first come first served basis to make exterior repairs or replacements of identified fiYtures. T'his program has implemented 15 home unprovement projects. These improvements involved the exteriors of these homes and included improvements such as siding, roofing, and garage repair. Two of the structures were owner-occupied multi-family dwellings. The grants were leveraged 2 to 1. Each grant recipient had to attend a workshop to prepare for the improvement process. The workshop covered concems like contract language and what to expect from the program. The addresses of the unproved properties are: 1411 Van Buren 1628 Lafond 1811 Minnehaha 1484 Van Buren 1531 Minnehaha 1361 Van Buren 1388 Thomas 1655 Van Buren 1375 Van Buren 1717 Blair 1527 Minnehaha 678 N. Pascal 1528 Minnehaha 1452 Van Buren 1471 Lafond Ave. The program helped H-MARC build relationships with homeowners with whom they otherwise would have had no contact. It gave H-MARC an opportunity to act on behalf of the residents in the neighborhood and trouble shoot for them. The exterior improvement program did have spin-off effects although Beth Randall could not readily identify them. Ms. Randall said the STAR Program did help to build community. Residents came to the workshop and met their neighbors. Beyond the improvements of property the project opened up contacts that did not exist before. Most of the STAR recipients in this program were families. All but one of the participants was White. The average age of the participant was 40 . Contract Compliance: The area served by the program was coterminous with the area described in the contract. The area is bounded by Fairview and Hamline, Thomas and Minneliaha. 61 The STAR contract was entered into on Febniary 23,1996, and pmgram was projected to be finished by August 1997. All except one of the homes that were approved for impmvements accomplished the charge within 120 days. The one that took longer was given an ea�tension but that was not sufficient. The monies for the returned award went back into the allocation process. The remaining monies eamiazked for H-MARC should be spent and the improvements implemented before the end of the snmmer of 1997. Because of the reimbursement process Ms. Randall thought that the rate of completion was slower. She said that H-MARC reimbursed the homeowners with their own funds and waited for the City to reunburse them. H-MARC could only front a porteon of the money at a time, so this slowed things down fiuther. The funds were used for the intended e�cternai improvement eapenditures. The improvexnents included roofs, siding, windows, fencing, driveways, gazages, and chimneys. The fuuds are not fully disbursed because the STAR awazd missed the fust construction season. Another reason for all the money not being disbursed is because one of the grantees never implemented the project. The monies aze almost entirely disbursed, and Ms. Randall said the pmject will be compieted by the end of the suminer. The STAR grant recipients generally used contractors. However a few of the residents used sweat equity to implement their improvements. Comments: The lowest bids from contractors who met the xiecessary Iabor criteria for getting STAR funds did not always construct improvements competently. This was exacerbated by the fact that some crews had no Engiish-speakiug workers. In one case the crew in good faith started preparing the job. Their method of preparation was unconvenrional. The owner recognized it as such and asked them to stop. The crew and its leader appazently did not understand. As a result of this misstep, $500 of additional repair was necessary. Another concern with the program was that the contract forms for the STAR Program were not thought out completely, wluch generated more work for the community groups. Au exampTe was the late inclusion of the demographic request form as part of the process. H-MARC had much of the necessary informafion but had to go back for more. This only adds to the problems created because of the fact that none of the funds can be used for administrative purposes. Ms. Randall indicated that this exclusion of certain costs such as mazketing and public relations makes STAR funds hard to work with. She also stated that the match presents serious problems when worlang with STAR funds, and she thinks that at least in some cases, other City monies should be usable as match in tlus process. The final comment that was made is that all STAR boazd meetings should be open to the public and that a permanent seat should be assigned to a representative of a community organization. 62 1 � � � � � � � � � � � � � � ��-�a� 95.127 3ewish Community Center Capital Improvement Jewish Community Center of the Greater Saint Paul A rea Descripfion: LoanAmount $408,000 The objective of this pro�am was to renovate the e�sting 7ewish Community Center building and enlarge its pazking facilities. The center has been enlazged and new lighting has been installed. The previous lighting system was mostly incandescent, and now it is halogen and natural lighting. Additionally the entire building has been made handicapped accessible. In this effort a wheel chair lift was added to the pool area to enable movement from the entry level deck to the lower pool level. STAR funds also financed the removal of asbestos from the first level and pemutted rehabilitation of the basement level. Systems were improved at the center including the fire safety and air conditioning. Externally the grounds were modified with STAR fixnds. The changes included e�cpanding the parldng lot, sealing it, and adding more lighting. Uneven walkways were made level and the landscaping was enhanced. STAR funding has reinvigorated the JCC and aliowed it to continue to operate as a resource to the southwestem section of St. Paul. The community which the center services came together and raised $1.9 million for the complefion of necessary improvements. With this project the neighborhood and wider community has a location to hold community meetings, and experience physicai fitness and social programs The JCC services the entire population of southwestern St. Paul. Ali ages aze served. Through day care and the teen drop-in center minors are being served. In fact, 275 children aze regulazly cared for at the day care facility. There are programs geared towazd senior citizens. Also there are a wide variety of options available at 3CC which aze not age specific. This variety includes the fitness center, various community meerings, classes for English as a second language and a host of other alternatives. As a result of the expansion and improvement 7CC has increased its membership by more than 1,000. The majority of those served are White as is reflected in the composition of the overali neighborhood. Contract Compliance: The azea being served by this project is primarily Highland, Macalester/Groveland, and upper W. 7th Street. However the JCC is attended by people from a11 parts of Saint Paul and most parts of the Twin Cities. I The contract was signed 3f26/96 and construction started in June of the same yeaz. By 7une 15, 1997 the majozity of the items described in the contract were completed. All of the intended improvement needs were or will be met through the project but somewhat differently then described in the � contract. First it was not necessary to build the admiiustrative portion of the proj ect on two levels as stated in the contract because there was enough room for e�ansion on the fust leveL The 63 expansion of the administrative offices occurred on the first floor. Second, the teen drop-in center described in the contract was placed in the basement rather than on the second floor. Thus the impmvement needs of the center aze being met as described in tfie conlract but with a different physical design. The last pazt of the project, pazking lot improvements, were completed in November, 1997. All disbursements have been used in the JCC project. All of the improvements were accomplished as indicated in tke contract. Titere was one variation nt method through which the project was implemented. The adminisfrarive area is one floor rather than two. With ample space behind the center one level was sufficient to house the center's administrative needs. A11 of the work on this proj ect was contracted out. Comments: Mr. Garr thought the STAR pmg�am worked well with fhe JCC pmject. He viewed the STAR funding and guidelines to be sufficienUy fle�cible to bring this pmject to fruition The hardest part was locating a competent sub-coniracYor who also met the City's Litt1e Davis-Bacon standards. However only one ofmany jobs had to be redone because of poor quaiity. Mr. Crazr thought meeting the City's Litt1e Davis-Bacon requirements was especially hard in the booming economy wluch was fally utilizing its best construction resources. 0 � � � � � Li � � � � � � r a��a� 95.130 Macalester-Groveland Middle Income FY�-up Macalester-Groveland Commnnity Council Descripfion: Loan Amount: $150,000 The ob}ective of this program was to provide home improvement loans to individuals who might be excluded from traditionai lending opfions. It was set up to cusluon the risk of the lender and spark reinvestment. The program enables residents of ttris neighborhood an opportunity to bonow unsecured loans at a 7.25% interest rate in order to make home improvements and conduct major maintenance. As of 7uly 8,1997, 20 applications for loans have been granted. Over $120,000 has been loaned out. This money which the residents directly borrowed from Firstaz Bank is leveraged by $150,000 of guazantying STAR funds and the associated interest. Improvements executed included but were not limited to new roofs, gutters, floors, sidewalks, retainnig walls, and more. No information has been documented by Macalester-Groveland between February and 3une 1997 as no assistant was assigned to the task. During the interview with Katherine Tarnowski, the program manager, it was also mentioned that the loans aze not secured and that there is no recourse to ensure that the loaned monies are used in the proposed manner. The properties seroed are: 1976 Stanford Avenue 2081 Fairmount Avenue 399 Macalester Street 303 South Brimhall Street 1868 Sargent Avenue 183 Mount Curve Boulevazd 1380 Grand Avenue 1381 Randolph Avenue 2123 Fairmount Avenue 2161 Juliet Avenue 2000 Wellesley Avenue 453 Pascal Street South 2033 Stanford Avenue 1361 Juliet Avenue 412 Macalester Street 1725 Berkeley Avenue 1661 Randolph Avenue 2156 Stanford Avenue 1577 Sazgent Avenue 1730 Lincoln Avenue The program has had mixed success regazding its achievements. Not all of the money which is auailable has been loaned out. This program is a compiement to other grant and loan opfions that the community council assists residents in accessing. The larger impact is negligible. No spin off projects or repairs seem to have been spurted on by tlus loan program. Perhaps this is because the improvements are more geared toward lengthening the life of the home as opposed to enhancing its aesthetic character. 65 Young families are the majority of applicants to the prograazn A significant majority of applicants aze white. This is essentially the character of much of the neighborhood and was expected to be the majority of the loan recipients. Moreover a11 the loan recipients are middte income and are generally individuals with good credit histories and little or no equity in their homes. These participants meet the characteristics identified in the STAR contract for the funds. Contract Compliance: All of the individuals served live in the designated area between I-35 and the Mississippi and Smnmit and Randolph Tlris loan program will run over a 10 year period which started February 1996 and wi11 end January 2006. All the principle and interest on the individual loans will be paid back by that time. Each construction work project appeared to be completed within 3 months. The repayment terms of the loans vary slighdy with the most common length is 3 years. The STAR pmgram had little impact on the speed of actually processing the individual loans because the bank handled that. Completion of the progrun has not occurred because all of Ioans for individual pmjects have not been disbursed. IY is believed that the district conncil's limited staffing and lack of publicity kave prevented the funds being fully utilized to date. STAR funds were fuliy disbursed to tUe bank to be held as a loan guarantee. This disbursement amounted to $150,000. This money is held at the bank in a high yield account in the event of a home loan default. The e�cpenditures aze on items specified in the contract. According to Ms. Tarnowski the leveraged funds are not fu11y used because they do not meet the needs of many of the residents in Highland. In puticular they ate not used because of the residents asset profiles(Iazger amount of equity in home than is allowed under the pmgram) or the loan interest rate is too high when balanced against the home owners desire to impmve the properry. Because of the way this program was configured there are no records in the central or STAR files detailing what eapenditures the STAR money backed. According to Ms. Tarnowski all the money loaned out from the bank was used on exterior improvements. .. � � r �� a� � �ag 95.133 Neighborhood Development Center Special Opportunity Loan Fnnd Neighborhood Development Center Sced Capital: $200,OQ0 Description: The program was to provide graduates of the °RECIPES for Business Success" program or the "Micro-Entrepreneur Training" program with business start up financing. This program has been conducting sessions of the "Micro-Entrepreneur Training" program twice annualiy since the contract was signed. The sessions are held in different parts of Saint Paul with the cooperation of various community development corporarions. They include Dayton's Bluff Center for Civic Life, REDA, Selby Area CDC, Aurora-St. Anthony Neighborhood Development Coip., ESNDC, and NEAR. The classes are offered in fall and late winter. These sessions which are also taught in Spanish and the Hmong language aze mandatory before one can get STAR funds in this program. One business has been able to use this opportunity loan fund. The business is Heaven-Hi Originals at 169 N. Victoria St. The loan enabled the owner to make leasehold improvements. Ms. O'Neill, ttie program manager, had confidence that the STAR program could have a significant unpact, but so far she seems to tluiilc that the program has not exercised much influence. One spin- off effect is the fact that Selby Area CDC is working on a new commercial building on an adjacent comer. The building which Heaven-Hi is located in is for sale. This business presence may make adjacent land more attractive also. This program is serving the fledgling entrepreneurs in the neighborhoods of Saint Paui. The single partacipant in the loan fund is an African American business owner who specializes in the resale of Afi art. Through STAR and NDC, he has made his business location an attractive neighborhood asset and also serves as a neighborhood role model. Contract Compliance: The individual business that is currentiy being served by the loan fund is in the program's service area. The area identified in the contract is the entire City of Saint Paul. � The STAR contract was entered into March of 1996. The leasehold 'unprovements occurred during the spring of 1996. According to Ms. O'Neill the STAR funds did not affect the rate of completion for the program. In the case of Heaven Hi the loan money went toward an awning, electdcal upgrade, plumbing, and other repairs. The reasons that most of the Special Opportunity Loan money is not allocated is because the loan money is eannarked for fixed assets and the start up business people need working capital funds for things like small tools, rent, utiliries, labor, and other such costs. The Neighborhood Development Center lmew about this situation earlier, but thought that the new businesses would get beyond that period of the development process and start needing funds for fixed assets. Another unpediment to the use of STAR funds is that community agency is held 67 responsible for the pay back of the loan and for that reason the CDC tries only to use the loan fund as a final option. The work on the Heaven-Hi project was completed by a contractor. Comments; Mara O'Neill thought the STAR funds were hazd to use because of the fact that they aze limited to physical improvements. Another azea of contention is the recourse aspect of the loans. Ms. 0'Neill does noY believe that the CDC should ultimately be held liable for the loan. She also disiiked the way in wluch Norwest Bank was servicing the loan. She wants better and more immediate information regazding the state of the loan payment schedule. She also thivks that the anangement with Nonvest increases the costs of STAR funds to borrowers and loan fnnd operators. Neighborhood Development Center Project at Heaven-Hi Originals .: � � � � � � � � a�-�ag 95.141 Dale Crossroads Development Strategy North End Area Revitalization Inc. Description: GrantA,mount: $30,000 Loan Amount: $50,000 The objective of this program was to revitalize the Dale Street commerciai district by offering low interest loans and grants for exterior improvements. Two eaterior improvement have been implemented. The first is an awning that was added to Easy Street West at the comer of Como and Dale. The awning was financed through a]oan, and it runs above all the exterior wiudows. The second project was the extension of water service to a commercial car repair garage and the repaving of the parking lot and driveway leading to the shop. This improvement is located at 594 W. Maryland One more project has been approved, a pazldng lot and deck. No new businesses have been attracted to the service area as a result of the STAR funds. Only three of the ten projected 'unprovement sites have been developed or at least identified. The 5TAR funds haue helped direct the interest of North End Area Revitalization (NEAR) to the commercial redevelopment zone. NEAR spent substantial titne mazketing the program in the area throughout the spring and snnmier of 1997. Dave Black, progtam director, lrnew of no spin-off effects of this program. � NEAR's STAR Loan Prograni directly serves local businesses. The types of businesses being served are an automobile repair shop and a neighborhood bar. The clients of those two businesses aze generally from the neighborhood. Contract Compliance: � � � � � � Two of the businesses which are being or haue been assisted with STAR funds are geographically within the azea proposed beriveen Maryland/ Topping and Dale/Western. One was west ofthe target area by four blocks, and was approved as a waiver of the guidelines by staf'f. The contract for the entire STAR awazd with NEAR was negotiated March 1, 1996. It was indicated that the whole program would be finished by February 1998. Currently this program has more to do. The improvements on both loans aze completed and took less than 3 months. Steve Haney's project at 594 W. Maryland has not been reimbursed because of paperwork problems. The STAR Program is not affecting the rate of completion. The STAR budget has been utilized for an awning, water connection, and paving. The primuy reason that the money has not been fully awarded and/or reimbursed, according to Mr. Black, is that businesses in that area do not see the benefit of maldng ixnprovements. They do not see that the rate of return due to the improvement will outweigh the risks and obligarions associated with the loan that they would have to take out. The businesses want to see improvement to the entire streetscape of Dale, but this would involve the participation of players like Northem States Power (NSP). .• Mr. Black indicated that he thougtit this type of improvement was not likely in the neaz future. 'The other reason that businesses have been reluctant to participate is that the costs of the financing are too high. Matching funds are often unavailable or would severely deplete operating capital. The 5% rate of interest is not sufficientty attractive to offset the additional costs for labor standards compliance and loan servicing. Comments: Mr. Black indicated that the STAR cycles are unrealisric for small business activity, suggesfing that business monies be open for individual proposals. He felt that the matching feature was severely limiting. Many of the parties that need these monies cannot get a match because they are over extended or at risk for some other reason. Mr. Black believes that despite the sfightly tower interest rate offered by the STAR Program, the process and requirements offset any expected advantages. NEAR plans to retum all remaining STAR loan funds because of the liability it would incur in making additional loans. Grant funds, now available for use without a corresponding toan, wilt be attractive and are eapected to be depleted by mid-1998. 70 � � � � � � � � � � � � ' q�- ta� 95.148 S� Alban's Terrace Project for Pride in Living, Inc. Descripfion: Loan Amount: $225,500 The objective of this project was to develop the vacant building at 683 Hague into 12 apariment units and provide 1 S pazking spaces at 672 Selby. The units were to be designated for rental. This project restored the multi-unit building at 683 Hague which had been vacant for approximately 10 yeazs. It also provided 15 pazking spaces at 672 Selby. The improvements to the building included the replacement of the roof, hard wood floors, bathroom and ldtchen fixtures, windows, interior walls, electricai box, and the heating system. There aze 12 rental units in the building, a laundry room, a community meeting space, and Project for Pride in Living (PPL} office space. St. Alban's Terrace complements PPUs mission. This property is in close proximity to other rental complexes that they also own and manage. As a result they can locate their admiiustrarive functions for the area at St. Alban's Tenace in order to serve all their buildings in the neighborhood. This project heiped contribute to the revitalization of the Selby-Dale neighborhood. Twelve families were given an opporhuiity to live in a safe and affordable dwelling that met standazds for habitation. This property which has finally been made habitable is no longer the location of transient and drug dealing activity. The renovation has positively affected the neighborhood according to the apartment manager, Viclde Petroso. She indicated that there aze new revitalizarion efforts along St. Alban, and they aze taking place at other multi-unit rental complexes. Other indicators of the positive influence of this STAR funded revitalization are seen in accolades from the Grand Gazette and the fact that there is a waiting list for tenants at St. Albans. The building has 12 rental units and all are leased out. Ten of the units aze occupied by married couples with children, and two are occupied by single pazent families with children. African-Americans comprise half of the heads of household, hvo aze White, one is Hispanic, and three are Africans. The occupants have low to moderate incomes. Eight of the tcvelve units' occupants are below 80% of the mean income. Contract Compliance: � The building that was renovated is the same as the property identified in the contract. The occupants moved from various locations, many of which aze outside of St. Paul. Many of the occupants like the location because it is convenient to work. ` The STAR contract was signed on Mazch 21, 1996. Renovation of the building began that same month and was completed December 1996. Toward the end of the process there was a delay in � completing the rehabilitation of three to four weeks because the contractors on the job did not seem to fully understand the fire codes. The STAR funds did not directly affect the speed of time that it took tbe pmject to be completed. Mr. Helmeke, the pmject manager, indicated that the STAR funds � were easy to work with especially compazed to the funds auailable through the rental rehabilitation process. 71 � The funds were compleYely used for the rehabilitation of the buildutg and developmenY of the parking 1ot. As indicated in the central file the list of expenses associated with this renovation are e�austive. In particular the costs which ran in excess of $10,000 aze: demolition cabinets tile electric as halt roofin wood floor refinishin fire alazm maso windows c etin lumber all aintin Comments: PPL applied in Cycle 2 but was not funded. PPL did not apply in Cyc1e 3 because they felt that housing was not a priority of the Neighborhood STAR Board. Rosemary Ctazk, a resident of Saint Alban's Terrace, allowed tke research assistant to tour her unit. She indicated thaf she liked the look and feel ofher apartment. She did not seem to laiow that city sales tas money had been involved in financing the project. Apartments at St. Alban's Terrace � � � � � 72 �� q�-�ag 95.151 Railroad Tsland Moving on the Right Track Department of Planning and Economic Development Description: Grant Amount: $100,000 The objective of this program was to provide visibility and opportunities for neighborhood housing improvements. Over 40 residential properties were planned to be renovated. This project was intended to stabilize and atlsact residents. This program has directly enabled 17 home improvements in the Raikoad Island neighborhood. However because this is considered part of a broader inifiafive that involves other funding sources, the overall impact of the Railroad Implementation Group was over 40 home unprovements. The unprovements were tazgeted primarily at health and safety featutes of the residences and secondarily towazd facade improvements. As a resuit of this program recipients are safer to enter and e�t and less likely to be subject to hazards. The addresses served are: 661 Bedford 657 Desoto 453 E. Minnehaha 706 Bedford 474 Hopkins 585 Payne 588 Brunson 497 Hopkins 678 Preble 694 Burr 501 Hopkins 670 Rivoli 747 Burr 509 Hopkins 527 Tedesco 641 Desoto 444 E. Minnehaha Because of this program and others there is renewed confidence about economic and residential opportunities in the neighborhood. People who had moved out of the neighborhood are coming back. Three new homes have been built in the neighborhood. Moreover two business have recently established themselves on Payne Ave. They aze an antique store and a science lab. There is a renewed effort in the community which is being felt throughout the east side. � Railroad Island Moving on the Right Track has served residents in 17 homes. Of the recipients one was African-American, two were Hispanic, one did not report, and the remainder were White. The mean age of the recipients was 48.8 years, and the average household income was $28,500. 47% � of the homes were headed by males, 41 % by females, and the remaining percentage did not report. � 73 Contract Compliance: All of the impmved properties fell within the designated contract azea bounded by Bush on the north, �Iliatns Hill and the raikoad tracks on the west, Swede Hollow Pazk on the east, and East Seventh on the south. This pmgram began at the end of September 1995. Most of the consttuction occurred during the building season of the 1996. The entire program should be completed by December 1, 1997. The funds were used on safety and facade improvements. This includes safe passageways in and out of the house and refurbished exteriors. Tn particutar this program improved: porches, steps, and decorative details exterior painting, siding, and stucco repairs of deteriorated retaining walls replace(repair windows replacemenUrepair of roofs, soffits, facia, and gazage repair. The reasons for the delay of this program aze the match and difficulty getting bids from the contractors. The majority of work was done by contractors. The small amount of volunteer Iabor was not documented. Comments: Because of the amount of difficnliy getting bids and general commitments from contracYors, Ms. Pemberton thought that one appruach that may ameliorate this difficulty would be the use of more construction apprentices on STAR projects and pmgrams. 74 ! C� � � �..', � � � � � � � !; , ; 95.152 Riverview Area Streetscape Riverview Economic Development Association Description: Grant Amount: $74,000 The objecrive of this project was to revitalize the West Side's major commercial distdct with designs honoring the multi-ethni city of the neighborhood while using the river as a focus point. This project has been partially implemented. At this point 12 benches have been acquired and installed and eight small murals have been created on the George Street viaduct. The concrete benches which have been acquired use inlaid tiles as decorafion. The tiles were made by school children in the neighborhood. The murals on George Street depict characters from different cultures throughout the world. It represents the diversity of humankind. Another mural was created on the viaduct over Robert Street. The design for that work was contributed to by the Girl Scouts. However, the majority of this streetscape project has not been implemented. The idea of creating metal sculptures has been revisited and as a result of dQnated materials made availabie from the old Wabasha Bridge the project will involve a stone sculpture rather than three metal artworks. The planned stone sculphue, which will be located near the intersection of Wabasha and Concord, will denote the role of water in the arrival of many of the community's residents. The design will incorporate a semi-circulaz walk and a fossil mosaic. Other intended elements of the project are the addition of 10 planters and 12 trash receptacles throughout the neighborhood. This project has renewed community pride. Ms. Briseno said owner occupation has increased and rental tenants want to purchase the property that they are occupying. Visibility for REDA has increased with this project. The Arts are becotning more accessible. Philanthropic organizations are begimiing to recognize REDA and its commitment to the overall well-being of the community. The impact of this project is felt throughout the community. No actual numbers are available about how many aze served, but the improvements aze easily accessible to all residents. � The service azea is defined as: Concord Street between Ada on the east and Wabasha on the west; Robert Street between the Burlington Northern line on the north and Concord on the south; and Wabasha Street from Plato on the north to George on the south. � � Contract Compliance: STAR funds haue been used for the benches, tiles, artist fees, and supplies. This is verifiable through the receipts in the central file. � The contract was entered into on Mazch 1, 1996. The itnplementation began in Aprii 1996 and is expected to be finished at the end of 1997. The matching process has slowed the rate of completion, however, the project is still in compliance with the timeline as specified in the contract. Another � factor slowing the completion is REDA's difficulty getting commitments from azea businesses to help maintain the unprovements. Currently they aze looking for sponsors for the planters and trash � 75 r � receptacles. The process of getting sponsors for the benches took some time because the businesses � were not certain how much work was involved. The benches cost $8,OOR The murals on George � Street were $6,000. The Girl Scout mural was $18,000. Each aspect of this project required group involvement. Volunteer labor was a major component. � Not only was physicallabar a part but so was reseazch. The Girl Scouts reseazched different features of Latin American cultures in order to decorate the foot bridge. 76 Street side bench on Concord Street �� [J � �_J ��-ia� 95.153 West Side Business Development Loan N�nd Riverview Economic Development Association Description: Grant Amount: $50,000 Loan Amonnt: $60,900 The objecrive ofthis loan and gant program was to stimulate neighborhood inveshnent. The monies were designated to leverage the inveshnent on a one-to-one basis. This program has been partially implemented. Anne Briseno, the prograzn manager, stated that the remainnig grant portion ofthe program is in the process ofbeing implemented, but the loan portion is uncertain. Under the grant, 12 store fronts have been unproved. Some of them are: 11 Concord St. 420 S. Robert St. 455 S. Robert St. 175 Concord St. 429 S. Robert St. 458 S. Robert St. 183 Concord St. 441 S. Robert St. 464 S. Robert St. 168 George St. 448 S. Robert St. 537 State St. The improvements include awnings, windows, doors, stucco, signage, paint, pazking lots, and lighting. The loan funds helped with the acquisition of the property at 200 Concord Sireet. REDA has identified four more businesses to use the remainder of the grant funds. The use of the loan funds has not been completely identified, but another acquisition transaction would be a possible use of some of the loan funds. This program has renewed business confidence in the commercial viability of the Riverview area. Membership in the neighborhood business associarion has increased. The relationships within the REDA and with the arganization itself have improved. Examples of the improvement in the business climate of the Riverview azea aze witnessed in the fact that Mi Tiena Restaurant, Megusta Mexican Cuisine, Las Americas grocery store, and others moved into the area. This prograzn is directly serving the business retail segment of the population. This in turn is helping to supply the neighborhood with a comprehensive array of goods and services. In fact some of the stores are highly specialized and their service and/or product are not readily found throughout the metropolitan area which gives them a larger service azea than the Riverview area. There have been three business eapansions and five business that went from tenant status to owner occupied status. Another indicator that business activity is increasing for the neighborhood can be seen through the steadily elevated attendance at the Cinco de Mayo festival. 77 ' Contract Compliance: All of the businesses that were unproved by this program are located in the area that was designated in the contract. The area is one block on either side of Concord Street between Ada on the west and Wabasha on the east; one block on either side of Robert Street between the BurIington Northern Raikoad on the north and Annapolis on the south; and one block on either side of Wabasha and Wuufred from Plato on the north to Shyker on the south/west. All of this azea is in Saint Paul. The STAR contract for this program was entered into on March l, 1996. Each of the improvements had to be completed within 90 days per REDA guidelines. All of the facades have been completed within this time frame. Ms, Briseao made no indication as to when the loan portion of the program would be completed, but she believed that the grant aspect would be completed by the end of September 1997. The final completion period in the contract is Februazy 1998. Ms. Briseno stated that there were no elements of the STAR which accelerated or retard the speed of the prograzn's completion. Aowever the REDA requirement for more than one coniractor bid has extended the amount of time prior to the implementation of the improvements. All of the gtant funds have been used as specified in the contract. The monies went to facade improvements. However the loan funds did not go towazd commercial rehabilitation but rather towazd the acquisition of a space for business. Ms. Briseno was certain that her accounY officer, Marshall Tuxner, was aware of this, and that this use although extraordinary was acceptable. Comments: Ms. Briseno expressed concerns about the usefulness of the STAR loan program. She thinks that the underwriting standards aze excessive and that the community organizations can not compete against the private sector. She thinks that in tight of the efforts tfiat communiry organizations make to mazket the loans that they should also get to service them. Because neighborhood organizations have few assets she thinks that it is futile to hold them liable for loan defaults. Another problem she had wifli the program is that a recipient must use the funds for bricks and mortaz. She indicated that these requirements for sales tax use of funds limit the possibilities of the program and aze generally unrealistic. Ms. Briseno also did not caze for the use of reimbursexnents as a method of disbursement. Because of this feature it put a heavy burden on the community organization which is already strapped for cash. When Ms. Briseno applied and accepted the Ioan feature ofthis pmgram she was thinlang that should could use the loans as interim financing while waiting for the grant reimbursement. The funds in the loan portion have not been used in such a way but that was her initial thought. Editor's Note: The City agreed with Ms. Briseno's concem about loan servicing of the business loans and REDA now has their own servicing agency handling the individual loans. FF3 [�� 95.155 Indnstrial Expansion and Renovation Loan Program Port Authority of the City of Saint Paul Description: �� i a� LoanAmonn�$150,000 The objecrive of this loan program was to provide up to 3 loans that would be originated with manufacUUing or industrial companies for facilities unprovements, designed to increase the City's tax base and createlretain living wage jobs. Loan terms with the Port Authority were to be set at 4% interest with a term of 15 years. This loan program has been implemented. One loan amounting to $150,000 was awarded to Northwest Sheet Metal. With the help of this loan they were able to acquire a site and build a new manufacturing facility. The facility is located at 110 W. Sycamore. The building which is 15,300 square feet houses admiiustrative and manufactiuing funcrions. The possibility that three loans would be awarded was discussed in the contract. Steve King, the program manager, said that was not possible because the STAR award granted the Port Authority was less than what was requested. The plan as implemented allowed the Sheet Metal works to double in size. More importantly it allowed them to remain in Saint Paul. This was one af the primary objectives in this loan program- job retention and creation. This loan accomplished just that. The program allowed Northwest Sheet Metal to use the final pazcel in the North Rice Street Industrial Park which had developed slowly and somewhat uncertainly. It attracted companies with similar interests about eacpansion to approach the Port Authority. This project increased the ta�c base ofthe city by an assessment value of approximately $640,000. Eight additionai jobs were created which pay an average hourly wage of $24. This program directly served one manufacturing business. However it provided a safer and more efficient work space for the existing employees and addirional space for 8 new employees. Contract Compliance: The facility that was created as a result of the loan program is in the City of Saint Paul. The service azea that the Port Authority described was citywide. The conh�act for the loan program was entered into March 1, 1996. Construcfion on the sheet metal facility began in October 1996 and was completed in January 1997. STAR loan funds were used for the purchase of the land on Sycamore it appears. The money that paid for the reimbursement went to Commonwealth Land Title. 79 � 95.158 Phalen Corridor Redevelopment Project Port Authority of the City of Saint Paui Description: Grant Amount: $150,000 The objective of this project was to redevelop vacant and underutilized industrial land for reuse as industrial projects which generate living wage jobs. The corridor extends from I-35E in the west to the Phalen Shopping Center in the east. The project includes the acquisition and redevelopment of approximately 30 acres of blighted, abandoned, and underutilized raikoad property. The new azea is desi,giated to hold light industry. This project, which wilt redevelop the Wiltiams Hili secUon of Saint Paut, has not been implemented. This is a business park development. It will encompass five pazcels on a total site area of 25 acres. The park is zoned I-1 usage, so it will be tazgeted toward light manufacturing and industry. Currently the land is going through soil remediation. After that the ]and will be reshaped to accommodate the planned acrivity. Later the utilities and roads will be added. "The STAR funding is critical," according to project manager, 7ohn Young. There is a narrow mazgin for errar in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awarding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are charged with spurring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that will occupy the park, there will be a recognizable positive effect. For instance, the Port Authority requires 60% of the project tenanYs employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the park to employ one worker per 1,400 square feet of enclosed sgace_ This acYs in combination with the fact that the port atso mandates that business develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees wiIl work in the business pazk when it is fuIly developed. This is stren�thened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. The project will directly serve approximately 5 light manufacturers and their employees. Beyond that it will depend on the nature of the businesses. Factors such as IocalIy made content of tlie inputs and the mazkets of the fmal products will determine who is being served also. Contract Compliance: The project is stili set to fa11 within the boundaries established in the contract. The service azea is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northem rail line tracks on the north and east. :1 � [� � �� - i a� The contract for this project was entered into Mazch 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The roads and urility serves aze expected to be finished by September 1998. � No STAR funds have been used on this project because no capital improvements have been made. First remediation must be completed. After a month (9/97) that process should be complete. This necessary step has slowed the completion process. Also matching funds that are pending for this � proj ect from the Federal Economic Development Administration must be received before the STAR funds can be used. If they aze not, then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors aze addressed Mr. Young believes the total project should be I finished and ready for business development by September 1998. � � �� .� ' 95.165 Cambodian Community Center United Cambodian Association of Minnesota Description: GrantAmount: $150,000 Loau Amount: $150,000 Seed Capital: $ 50,000 The objective of this project was to enable The United Cambodian Association of Minnesota (LJCAM) to purchase the bank building at 523 Jackson St.. This structare was designated to be used as a Cambodian Community Center, UCAM offices, and a Cambodian restaurant. This project is partially completed. The building at 529 Jackson St. has been acquired. The resYaurant facility described in the coniract has not been started. Tke buildittg that the United Cambodian Association of Minnesota (UCAl� purchased houses numerous functions. They are: UCAM offices, the Cambodian Legal Project, recreational and social faciliries for Cambodians, an art studio, and 16 residential rental units. The building's purchase price was $700,000. The financing of the purchase included $40Q000 in mortgages on the building. With STAR funds the UCAM has been able to serve a segment of the Saint Paul citizenry which was not previousIy being served. Cunently the organization is serving as a social organization. This mle is slowly changing to one more aimed at cultural preservation. During this period of evolution the UCAM is sti11 serving the urgent needs of its clients, 80% ofwhom are considered in poverty. The needs involve issues associated with social disarray experienced when their clients aze assimilating Yo American culhu The UCAM impacts the wider community by offering educational and social opporiuniries to the bmader Asian community. It indirectly benefits the wider community by stabilizing and directing the Cambodian community toward self-sufficiency. The center primarily serves the Cambodian population of Saint Paul. There are 4,500 Cambodians in Saint Paul and a total of 9,000 in of Minnesota. The project management thinks that about 3,000 people aze served directly. However the served population is not lunited to Cambodians. Through the center's legal services immigrants from other countries aze aiso served. People from Africa and southeast Asia look to UCAM for assistance. Contract Compliance: The purchased building is located at the address indicated in the conlract (comer of Tenth and Jackson). The conlract was entered into January 2, 1996. The purchase of the center occurred that same month. UCAM requested and was ganted an extension on the seed capital loan unfil7anuary 2, 1999. Additional tenants are being sought for the project and these funds will be used to make leasehold impmvements for new tenants that aze new businesses or are earpanding. The STAR funds that have been expended for flvs project were for the acquisition of the building at 529 7ackson. The remaining funds which have not been spent aze seed capital funds to start a new E:3�► � 1 ' � a� - i a� restaurant or improvement of their other commercial space. Two primary factors are holding up the complete implementation of the plan. The first is locating matching funds. UCAM management thinkc this will be resolved with iY s latest efforts to apply for grants. Another stumbling block for the project is the inflated prices associated with the design and the difficulty of getting bids which work within their budget. UCAM has teiminated its relationship with the former architect and is looking into other designs and uses for tlus space. � Comments: Mr. Popken raised some concem that the process was all on paper. He thought that there was going to be a site visit during the approval process, yet he never heazd that such a thiug had happened. � Editor's Note: A video that was viewed by the STAR Boazd was taken of each of the application sites. The City Council agreed with Mr. Popkens's concerns and staz�ting with Cycle 3 all applicants � who aze invited to submit a final application aze interviewed by the STAR Board. � � � � � � � � � �J � Ei�3 � � 95.166 University Marketplace Facade Improvement University United Description: The objective of this program has been to provide funds that will be used to physically improve businesses in the University/Midway azea. The required match is 1.2 to 1. As of July 22, 1997 no part of this progrun has been implemented. However nine facade improvement grants have been awarded within the past two weeks and per University United guidelines once a project has been awarded the unprovements must be completed within 45 days. Ms. Rodriguez, the program manager, said that there may be extensions on trris deadline, but all the approved grants should be completed by the end of the bnilding season. When the improvements aze unplemented they will include siding, doors, windows, roofs, paint, and signage. University United has placed a deadline of July 30, 1997 on all grants for facade improvements. Without eacpanding the service area Ms. Rodriguez is uncertain as to whether the funds can be fully awarded. Addresses for Approved Facade Improvements: 1183 University 1569 University 453 N. Snelling 1669 University 1266 Donohue 1505 University 1639 University 1553 University 1459 University This program has helped University United make a connection with the business community. Businesses aze beginning to realize that there is an association which represents the commercial interests of the Midway, and they are seeldng it out for assistance. Ms. Rodriguez could identify no spin off effects from the facade improvement program, but she was convinced the program serves as a complement to the Midway Mazketplace shopping center. She indicated that many of the small businesses which received the awazds for the grants do not replicate the consumer offerings of the shopping center. This specialization accentuates the commercial potency of the azea. This program directly serves the businesses of the Midway area. The first approved allocation of $39,315 will serve nine businesses. Each awazd averages $4,348. If the remaiiung funds are allocated in the same average amounts about aight more improvement awards will result. The applicants have been racially diverse. Seven are WYute, three are Afi and six are Asian. Because of the magnitude of this commercial hub, the area serves residents from outside of the neighborhood and the city. GrantAmounh.$7s,000 � , E:� � �� Contract Compliance: � Each of the businesses that have been awarded grants are located within the region which was � identified as the tazget azea in the contract. The borders are Fry Street on the west, L,e�ngton on the east, Shields Avenue on the south, and Charles Avenue on the north. � The contract for this program was entered into Mazch l, 1996. Because of a change in University United's administration staff, limited administrative resottrces, time demands on small business � ' � � � owners, difficulty of getting two construction bids, and business owners' inabilities to meet required standazds, the implementation process is only now getting under way. As stated earlier each award recipient has 45 days to complete the project, but because of a high demand for contractors in mid construction season it may take longer. Additionally the University Marketplace Faqade Improvement Program applicants have until July 30, 1997 to apply but this may not ensure enough quality applicarions to awazd all the grant money. 5611 Ms. Rodriguez believes that the program can be completed before the end of the yeaz, but it might involve expanding the service area farther in each direction on University Avenue. Despite diligent efforts to contact the public about the University Marketplace Business Facade Improvement Program for the Midway area, there has not been an overwhelming response. University United has released flyers promoting the pmgram three times. The first of which was in April 1996. Two of the flyers were mailed whereas one was delivered door to door. Most of the projects involve the wark of professionals in the construction industry. University � United advised each business to do it that way to make certain that the improvements met regulatory requirements. A couple of the projects involved some sweat equity, which was limited to minor portions af the unprovements. Update as of January 21, 1998: As of today, IJNITED has closed on 13 of the 20 projects. Three projects will be completed next month. Total physical improvements for the 16 projects is $203,155. If the remaining projects follow through to completion the total improvements will be $317,155. A total grant of $75,000 was allocated to this program. The project far exceeded the required matching amount specified in the contract. m � � 1 � , r / r �) 1996 Neighborhood STAR Small Grant Program 96.001 962 University Avenne Facade Improvement for the Upper Midwest Acupnncture Clinic and Healing Center Grant Amount: $15,000 Asian Business & Community Foundation Description: � The objective of this project was to renovate this building's facade, create signs and rehabilitate its front access. In addirion the project was intended to make the buiiding more visible, handicapped accessible, and more attractive to the clients. � lJ � � � This project has been partialiy implemented. The fi access has been completed. It has concrete stairs which lead onto a wooden deck. The deck azea is surrounded by four-foot wooden walls. The walls were varnished ixnmediately after completion, but the deck portion was not. It appeazs to haue deteriorated to some extent, and it may not last the designated seven-yeaz period. In order to make the building handicapped accessible the pazlang lot was resurfaced and a gap between the building and lot was filled. According to Nghi Huynh, the project manager, the door to the parking is wide enough for a wheel chair. It did not seem to be as wide as standazd handicapped doars. However there is a garage door adjacent to the entrance and Mr. Huynh indicated that it is used as an access also. Despite this improvement there are significant deterrents to handicapped use of the building. First it would be neazly impossible to ascend the incline from the sidewalk to the pazking lot entrance without help or at least a motor. Secondly, the bathroom facilities aze not handicapped accessible. � Because the building is made of corrugated steel and the parking lot is adjacent to it, it is sub}ect to denting. A protective wooden guardrail was installed around the building. In the rear and front ofthe parldng lot gates and fences have been erected. The gates can mll open and shut. The last part � of this project is a decorative cylindrical wooden structure on the northeast comer of the building. As of August 1997 it had been completed and was waiting for a sign to be placed on it. A lit sign will be placed at the top. The top is defined by an angulaz cross-sectional cut. ' l, I � IJ � Because of this pro}ect the center at 962 University is more visible. It benefits the clinic by making it easier to recognize on the a�enue. The lazger community is benefited also because this is the only health center in the eastem metropolitan azea which synthesizes eastern and westem approaches to medicine and healing. This clinic mostly serves people from the eastem portion of the metropolitan area. Mr. Huynh described many of the patients as having low incomes. 70% of the pa�ons are of East Asian origins, and 30% aze White. �'�37 ' Contract Compliance: The services of the clinic are strongly focused on the immediate area surrounding the clinia This includes the Midway and Frogtown areas. Because of limited services throughout the metropolitan azea most of the clients come from the east side of the Mississippi. The STAR contract was entered into 7uly 22, 1996. According to Huynh, improvements began in June of 1996 and are e�cpected to be completed by September 1997. This does not fall within the one year expiration period wlrich ended on 7uly 22, 1997. STAR funds have been disbursed on this project. There have been two requests. They are recorded in the STAR file. The central file shows no disbursements or receipts. The majority of the project was accomplished through contracted labor. Volunteer labor was used to prepare the area for the improvements and varnish the eaposed wood. Midwest Acupuncture Cenfer E�3 , 0 ' , � � 1_ J L a�-1a� 96.002 Maintenance, Training, & Distribution Center Aurora/Saint Anthony Development Corporation Descripfion: G�ntamo��:$io,000 The objective of this project was to create a facility serving as a maintenance, tool storage, and distriburion center for products donated by various businesses which will be used to aid residents gain lmowledge of tools used to make maintenance repairs. A garage has been modified and improved to setve as a learning and resource center foz basic sldlls. In order to adapt this building to a different use changes were made. The improvements include a new roof, electrical wiring, a gas line, and sheetrock. Siding will be added to the exterior of the building. Because this project has not begun to use this space, it can not be determined what the project will achieve. However it is eapected that this project will aid residents in learning rudimentary skills about plumbing, sewing, carpentry, and electrical wiring. � The project has been taking applications from potential participants. The applicants must be over eight years of age. Most of the participants aze expected to be children or young adults. However senior citizens will serve as mentors and the beneficiaries will include middle age residents who L � , tJ lJ � � � � want to enhance their laiowledge of home improvements. Contract Compliance: This project serves the neighborhood residents, but the adyacent azeas of Frogtown and University/Smmnit are also served. This STAR contract was entered into on August 30, 1996. The project began in October 1996. It will be completed by August 1997. The manner in which the STAR funds are disbursed did not impede the progress of the project. The STAR funds were utilized for capital improvements to the new gazage behind the house at 770 University. The improvements anclude a roof, electrical and gas service, and siding. This project was completed with a significant contribu6on of volunteer labor from the neighborhood and others. The implementation of this project was made possibie through the volunteerism of the residents of the neighborhood, and volunteers &om the carpenters and masons unions, Central High School students, and Knutson Construcrion. � � � 96.003 �rniture Warehouse Catholic Charities GrantAmoun�$12,454 � Description: The objective ofttus project was to rehabilitate the building at 436 N. Smith by relocating the garage door, upgrading the interior space, and maldng some public improvements Yo the front of the property to be used as a fiuniture wazehouse. This pmject has been implemented. The leased building at 436 N. Smith has been rehabilitated. In doing so the e;derior has been painted, the roof has been fixed, and the buildiug has been insutated. Intemally the building has undergone some changes also. 'I'he impmvements and additions include an office space, a kitchen, and handicapped accessible bathrooms. Frank Forsberg, the project manager, said this location is superior to the previous site in Frogtown because it is lazger, less expensive, and closer to a number of bus tines. Part of the plan that was indicated in tiie contract was not possible because of cost restrictions. It was proposed that a garage entrance be placed in the front of the building. It was too costly, and so it was not done. Forsberg also explored the possibility that a newly enlazged garage door be placed along the south side of the building. This was not possible either because the heating pipes in the building aze elevated along the south side at a relarively low height. Placement of a door on that side would have meant re-routing the pipes. A choice like ttus would have been cost prohibitive. Catholic Charities and other non-pmfit social service agencies have benefited from the creation of this furniture store. This improved site acts as a conduit between donors and recipients. It is a cleariughouse for fiuniture which is donated from the eastern metropolitan azea. The customers aze homeless and are trying to get back into housing. With severely limited resources the clients of the Fumiture Wazehouse have no way of obtaining fiuniture. None of the clients walk into the center direcfly but are referred fi other agencies. The referring agency writes out a description of what the person needs. The Furniture Wazehouse tdes to met that need. Thus the warehouse project is having an impact on the community. Most of the people served by this project aze from Saint Paul. Forsbetg estimated that 10% of the clients aze from outside of Saint Paul. Few of the furniture store clients come from Minneapolis because they have their own service. On a�etage, 40 families use the fiuniture store per week. Contract Compliance: The site thaY was renovaYed at 436 N. Smith concvrs with the site indicated in the contract. According to Forsberg the Furniture Store mostly serves people dwelling in downtown Saint Paul. A lazge percentage of homelessness in the eastem half of the metropolitan area is in downtown Saint Paul, and this is the region to which the furniture store caters. � .� ' � , C 1 � � ' � � � �J [J , ' � � ' � q� - �a� The date that the contract was entered into was August 9, 1996. Construction started in July 1996, and it was completed in October 1996. The STAR funds were fully used for this project. Receipts aze present in the central file. The expenses included partitions, insulation, a garage door, and assorted materials. This project involved volunteer labor. Volunteers helped with the interior and exterior painting. They also helped with the demolifion of interior walls and shelves. Comments: Forsberg chazacterizes the STAR program as a good investment in the inner city. However he fliinks the paperwork for the STAR, especially the small STAR, may be too intensive. He stated that some of the regulations should not be applicable to small grants. He thought that if some of the regulations were ]ifted it would be better for the community. 91 ' � 96.004 Children's Center Playground The Children's Center GrantAmount:$12,500 � Description: The objective of this project was to construct a playground for children ages 3-12. This project has been implemented. The playground is Iocated on the west side of the prope�y at 1065 Summit Avenue. Prior to the execurion of this pmject there was a playground on this site. As a result of ttus project the playground was doubled in size. In prepazation for the additional playground equipment the new secfion was excavated and a foot of pea gravel was filled in. Atop the fill a new piece of play equipment was installed. The equipment is primarily composed of fieavy duty plastic. It includes four slides and a slide track. According to the project manager, Colette Ryan, there was not enough play area and equipment for ttte children from the Childten's Center. Prior to the installation of the new equipment it was necessary to stagger the times in wluch the Children's Cente�s students used the play azea Because of the eapanded capacity this is no longer necessary. This not only benefits the Children's Center, the Crocus Hill Nursery, and Saint Luke's Elementary School but also the larger community. Although the back portion is fenced off, there is one gate in the back, an opening in the back, and one gate and an opening in the front of the grounds. Because of this access, ctrildren from the entire neighborhood can use the playground. This is the only playground within five blocks. The location and equipment at the grounds make this a safe and amactive play azea for small children. This project direcUy serves the children, pazents, and faculty at the Children's Center. Additionally it serves the children who attend Saint Luke's. Only the school children in grades K- 5 can use the playground. Minunally there are about 200 children who use the grounds on a daily basis during the weekdays. On the weekends and week nigkts tke grounds are more intensively used by the neighborhood. Ms Colette had no idea how many people used it during those periods. Contract Compliance: The area served is bounded by I-94 to the north, Summit Avenue on the south, Lexington on the west, and Victoria to the east. The nearest playground is located at the J.J. Hill Elementary School. This play area has been identified as being unsafe because it has a history of some criminal activity. Thus the newly expanded playground at the Children's Center is critical. The STAR contract was signed on August 30, 1996. The implementarion of the project began in July of 1996 and ended in September of 1996. The STAR funds went towazd the play equipment. Ms. Colette indicated that they chose equipment that the city regularly uses because it has a proven safety record. They did this despite the additional cost of the recommended equipment being higher than some altemarives. i 92 ' � ' qg ��a� Sweat equity was present in the implementation of this proj ect. Volunteers excavated the site, laid the gravel, and assembled the play equipment. The assembly was conducted under the supervision of a certified representative from the play equipment company. Comments: Ms. Colette indicated that some of the applicarion questions did not apply to the � situation of the Children's Center. This made the process mare confusing. Overall though she thought the Small STAR progatn was a good fit to their needs. The coordinators were helpful. Ms. � Colette said with the right project that she would apply again. Playground 93 Children's Center � 96.005 Dayton's Bluff Youth Project Dayton's Bluff Center for Civic Life GrantAmonnt: $10,000 � Description: The objective of this pmject was to install a gas boiler, insulate, sheehrock and build an egress exit in the basement of 281 Maria, so the azea could be used to house a bicycle repair club and a ceramics pro�am for at risk youth. This project has been unplemented. It involved the prepazation of the basement space of the Dayton's Bluff Community Center at 281 Maria Street for a bike repair shop and ceramics program. The space has been designed to benefiT at-risk yonth. In order Yo accomp&sh this project an egress access was added to the rear of the building. The access is enclosed in protective fencing. To increase the energy efficiency of the center insulation and a gas boiler were nvstalled. The proj ect was not completed in absolute compliance with the contract because sheetrock was not used in the creation of the bike repair shop. Donovan C»mmings, the project manager, said that the actuevements of the project aze limited because an attendant has not been hired for the bike repair shop. However there has been some program success with the creation of this space because the ceramic program has been operating since the beginuiug of the sunmier of 1997. This program reaches out to high school females and is entitled "Portage from Youth". An instructor has been enlisted to lead the classes which are offered weekly. Mr. Cummiugs said that in order to involve the community in the project more broadly it is intended that some parts of the pmject will incorporate intergenerational prograrr,ming. Because the project is not fully operarional, it is not yet serving the community as anticipated. The Portage Program is serving 10 students currently, and the bike repair shop is not serving anyone. Kathy Moriarty, who works with the Dayton's Bluff Community Council, said that they are trying to get a voIunteer to run the bike shop. Originally they were going to get funds from an anti-dtug program, but the money is no longer auailable. This change could prove to be a fomudable barrier to operating the bike shop. Contract Compliance: The project serves the azea of Dayton's Bluff: Mr. Cumnungs defined the area of service to include most of the south east section of Saint Paul. The STAR con�act was entered into June 14, 1996. The implementation of the improvements began during the summer of 1996 and was finished by the spring of 1997. This pmgress schedule complied with the anricipated contract outline. The STAR funds were used for a portion of all the ixnprovements in this project. The improvements include insulation, a boiler, and an ea�terior basement access. , �� , � � , , � L � � , , � � 1J � � ' � q�-�a� The labor for this project was entirely contracted. There was no sweat equity involved in the implementation of this project. Comments: Because Mr. Cnmmings is a real estate agent and contractor, he has a keen interest in the neighborhood and housing component of the STAR program. His company has been responsible for the labor necessary for the rehabilitation of the Swede Hollow Cafe. Mr. Cnmm;ngs identified the City's deferred loan program as being good. It helps promote home ownership and commitment to the neighborhood. He believes that there should be more funds available to the middle income, middle age segment of the population. Accarding to Cu*nm;ngs these residents are critical to the stability and sustainability of the neighborhoods. Perhaps the required match can be more highly leveraged by the individuai than aze some of the current progranis which require a one to one match. � , 96.009 Hamline Branch Library Public Improvements Grant Amount: $15,000 Hamline Branch Library Association Description: The objective is to implement signage,landscaping, and security lighting for the front yard ofthe � Hamline Branch Library, resulting in better visibility and increased patronage. This pmject is in the final design phase since several modifications were needed to improve the long- term maintenance needs of the Hamline Branch Library staff. A sprinkling system currently is being designed for the site by Larry Kasella The bid for the sign and lighting will be prepared during Pebruary of 1998, by City design staff in LIEP. Some modifications were required to accommodate a lighting system that would be compatible with the type of snowfall expected during the typical Minnesota winter. Triesta Brown, the project manager, indicated that thera were two major setbacks in project — implementarion. At the recommendation of Ken Dehkes, Hamline Universiry's landscape architect, � a site review was conducted to analyze conditions that would affect design such as snow removal, library hours, sunlight and shadow patterns during different seasons of the yeaz, health of the trees currently on site, and runoff and drainage patterns that currently e�cist. Ttris work was completed in ' September, 1997. This took more time than anticipated. Nea�t, a key community member from the Gazden Club uneapectedly passed away in August, 1997. The deceased was going to assist in the project by malang connections with local nurseries. Previously, it was thought that with the Garden , Club's assistance, the pmject could receive design guidance from the nurseries at no additional cost. While this still is possible, Ms. Brown is investigating obtaining the assistance of a master gardener who needs volunteer hours to maintain the master gazdener credential (by suggestion of the , Sustainable Resource Center staf�. Originally, conceived as a project designed around personal relationships, the project has become one where cold calling for nursery stock now is a necessary component for project contpletion. While Ms. Bmwn is prepazed to be flexibie azcd do whatever is � needed to complete the project, she is not a paid staffperson, but is an unpaid volunteer of a very small SOlc3 non profit organization that has no staff whatsoever. When she became ill in November, 1997, and was unable to work again until mid-January of 1998, there was no one else � available to move the project forward during that time period. The contract was entered into on August 30, 1996. According to the contract, they ha�e two years to complete the project. Ms. Brown indicated that everything will be completed by that time. Comments: Ms. Brown thiuks that the STAR Program is moving further away from its origianl intent of helping neighborhoods. The Neighbarhood Parkiership Program (NPP) was more useful because it was possible to tie a pmject in with other neighborhood planuiug efforts and into several public funding sources. Another limit of the STAR Program is that much of the regulaz STAR is earmarked for loans. Small organizations cannot service the loans, so they pass up the program. Without administrative allotments, many organizations can't devote sufficient time to the project to allow it to come to fruition. She understands the state lesgislature's need to direct the program toward proj ects which require bricks and mortar only, but it is unrealistic and a serious limitation .� i ' ' , � , ,, � , � ' ' ' � � ' ' �� .� to each projecYs fulfillment. Brown said that maybe the state legislature needs to be petirioned on this point. She aLso recommended that there be funds available for adminis�ative purposes or that an incentive to limit aduunistrarive cost be offered in conjunction with a source of admiuistrarive funds. Ms. Brown thinks that STAR funds should be combined with CIB. She thinks that the review process of CIB is conducted by people who are more lmowledgeable regarding the ways in which different interconnected funding sources can be combined for the greatest leveraging effect, especially federal and state sources. Even though these funds have become less plentiful, they still aze an important source of money that applicants aze likely to hy to combine with STAR either directly (which actually happened in the first round of funding) or indirectly by combining a STAR funded project with another related project that uses a different funding source. � u 96.011 Skyline Towers Playground Project Grant Amount: $20,000 Lexington Hawline Community Council Description: Tfie objective ofthis project was to construct an open space and playground at Skyline Towers. This project has been implemented. The playground is located on the northeast corner of the St. Anthony and Syndicate intersection. The park is divided into two play areas, each of which have a swing set and a Little Tikes Play Complex. Additionally this 3/4 acre site holds a circular sandbox and open play azea. All of this is accessible via asphalt pathways which aze equipped to handle wheelchairs. With the development of this playground, the adjacent bousing compleac,1247 St. Anthony Avenue, is provided with a quality recreation space. According to project manager, CYuis Dart, ttris area serves as a backyard for the residents in a high density housing complex. It offers safely and convenience to the residents. No longer do young children haue to cross Interstate 94 to find an acceptable play azea. � Skyline Towers Playground Because of its size, location, and ownership most of the pazk attendees aze from 1247 St. Anthony. This complex houses over 200 children undet 12 years of age and another 50, 12 to 18 years of age. In light of space limits the number requiring services at this location could not go up much more. Mr. Dart indicated that those who use the pazk from outside the community aze generally connected to the residents in some way. Additionally, this playground is extensively used by a child care program which is located at 1247 St. Anthony. Previously they had a small play azea. The space of the previous playground has been included in the new development. m Contract Compliance: /� � � . The azea served by the project is University to I-94 and Lexington to Hamline. The exact parcel is the same as the one indicated in the contract. The STAR contract was entered into on August 30, 1996. Consh began in Apri11997 and was finished by June 6, 1997. The STAR funds were used to prepare the land at the playground project. The lot previously had a pazldng lot on it. The land was excavated to prepare for the play space. There are receipts in the central file verifying expenses. The expenses were excavation, landscaping, irrigation, benches, waste receptacles, fencing, labor, play equipment, and other items. There was volunteer labor involved in this project. Principally the participation has been present in the landscaping aspect of the project. The building's committee has been instmmental in the establishxnent of a Playground Caze Committee. This group is just getting underway and will partly be responsible far the future of the playground along with building maintenance at 1247 St. Anthony .. 96.013 Saint Paul Access Solution Project Metropolitan Center for Independent Living Descripfion: GrantAmount: $15,000 The objective of this program was to manage a revolving fund that would allow low income people with disabilities that live in the St. Paul area to conshuct access solutions such as ramps and low tread stairs Tlus pmject has been implemented. Four ramps and five sets ofhandicapped accessible stairs were installed. Overall eight Saint Paul househol8s were served. This project uses a modutaz access design which makes the steps and ramps portable. Some of the ramps have been recycled as many as six times. This is a positive design feature because many of the disabled users have relarively short life eazpectancies. Because of the recent aature of the Saint Pau1 project no equipment has been recycled. The program is set up like a revolving loan. The recipients haue to pay a monthly rent fee which does not charge interest. After five yeazs the renter will own the ramp. Jessaniiue W. Stevens Carroll Address 943 St. Anthon 1496 N. Gmtto 1806 E. Arlingf 1023 Tonnine & stairs More people aze able to live independently because of this project. Without it some may even be forced to be institutionalized. This independence is important because services by agencies are being curtailed . For example, Metro Mobility, a major provider of transportarion to the handicapped, will no longer carry disabled customers upstairs. The cost effective and portable access will make it easier all azound. As stated above eight households are being served by this project. The recipients aze half male and half female. About 75% are seniors and the rest aze not. 25% were African American and the reminder were White. 100 Q�- �� Contract Compliance: This project served all of Saint Paul. The STAR contract was signed 7uly 12,1996. Construction began in 7uly of 1996 and ended May of 1997. The STAR funds were used for the materials and labor necessary to build the ramps and stairs. Because of the contract eapiration, July 12, change in project leadership, and eligible inquiries from Saint Paul residents, not all of the funds were disbursed. Volunteer labor was present in four of the eight access improvements. Volunteer labor was offered by the AT&T Pioneers as well as the Jaycees. St. Paul home with a portable access ramp 101 96.014 John Alden Square Gazebo Grant Amount: $8,420 Neighbors of John Alden Square Description: The objective of this project has been the construction of a quality 21 foot in diameter, 10-sided, wooden framed gazebo, with fixll foundarion, security lighting, and a drinlang fountain/water source. The gazebo is nearing completion at this point. The basic shucture is done, as is the shingled roof and surface flooring. Yet to be completed aze inside seating, steps, and a handicapped-accessible ramp. Location of the gazebo is on Gibbs Street, between Brewster Street and Brewster Place. Planniug and building the gazebo has indeed been a community project, drawing neighbors together and creating an enhanced sense of community. For instance, Reade Adams, the project manager, said that neighbors have begun helping one another with home improvement projects as a result of their experience of working together in Alden Square Pazk. The gazebo project has also drawn people out of their homes and into public space, creating new friendships and renewing long-term relationships. A majority of the homes azound John Alden Square aze single-fanuly, owner-occupied dwellings, although there are a number of apartment complexes on Brewster Street, one block east of the pazk. The Brewster Apamnents, which aze closest to the park, aze home to a large contingent of Chinese university students and their extended fanulies. Although language differences aze a barrier to fluent communication, some parents and their children have attended various functions, and the family elders seem to enjoy the beaury and open spaces Alden Square provides. Linnea Home, a senior citizen group residence, is located one block north of the pazk. A small group of its more able- bodies residents has taken an interest in the gazebo project and conhibutes time and labor to the extent each person's age and physical condition allows. The lazgest gathering at the gazebo, a concert by the Saint Anthony Park Band, drew upwaras of seventy spectators. Contract Compliance: Locarion of the project is John Alden Square, as was designated in the contract. Ms. Adams noted that the gazebo and pazk gazdens serve a three block radius. The STAR contract was signed August 9, 1996, although construction began in July of that yeaz. Completion is expected by summer of 1998. Befare the STAR funds were disbursed, the Neighbors of John Alden Square had raised the requisite matching funds through volunteer labor hours, cash, and in-ldud donations. STAR funds were used primarily for lumber and foundation concrete. The original application and cost estimate for the STAR grant did not include a handicapped-accessible ramp, and several phases of construction required materials not specified in the blueprint, so addifional funds must be raised to cover these cost overruns. 102 � E � �: . Without the commilment of neighborhood volunteers, the gazebo project would never have become a reality. Except for foundation excavation and concrete work, volunteers haue handled every phase of the building process, donating more than 5,000 hours of time to construction and finish work. ,�, Comments: Ms. Adams noted that the project hit a few snags at the beginning because the original �� project manager, Jim Rogen, moved to northem Minnesota during the crucial start-up phase. She also said that the STAR contract was difficult to interpret and recommended that an informational � session be provided for future gantees to cover the requirements and limits of the contract, as well as non-compliance related issues. For construction projects, she suggested that a procedural checklist be provided that listed all the steps necessary toward obtaining a building permit. Another � idea that she thought might be helpfui to some cash-poor neighborhoods would be to release some of the STAR funds prior to presentation of receipts. Other suggestions included: 1) creation of a consulting team for STAR grant recipients; 2) appointment of a piiinary contact person with the � STAR program who would be familiar with grant requirements and project details; and 3) cooperative agreements with local suppliers to provide discounts on construcrion materials for STAR grant projects. � Editors Note: A PED account officer is assigned as the primary contact for each STAR project. Gazebo at John Aiden Squaze 103 1 96.016 Saint Anthony Park Facade Improvement Program Saint Anthony Park Business Association Description: The obj ective of this program was to spur building and business owners in St. Anthony Park to undertake permanent ea�terior improvements to their properties (many over 50 years old) with small grants (not to exceed $2,000 each) to 10-14 members of the St. Anthony Pazk Business Association. This project has been completed, with a total of 17 grants awazded. The improvements were extemal and consisted of items like windows, doors, and signage. The ftnancial matches on the projects were at a minimum of $1 private to $1 public. Some of the matches were as high as five to one. The 17 improvements that were created aze: Pazk Hazdwaze (2 ro ects Ado tive Families Panino's Restautant Debbie's Custom Hair (3 Hampden Pazk Foods (2 Kimly's Tailor & Gifts ro'ects ro�ects Milton S uare 4 ro'ects Rosa Mundi Mannin s S eed Mazket Because of this project the Saint Aathony Park Business Association has enriched its relarionship with its members. Sue Davern, the project manager, said that this acts as a real benefit of memberslup. Moreover she said the STAit helps the association keep in contact with Saint Paul's Depariment of Planning & Economic Development. The facade improvement proj ect has nurhued these vital nexuses. Additionally because the STAR funds were matched in many cases at a level greater than one to one, there has been mare inveshnent in the business district than originally expected. The project improvements aze serving the ten business owners wflo implemented tfiem and fheir customers. One of the businesses that received a grant, Adoptive Families, is a new business to the neighborhood that brought 12 new jobs. Contract CompGance: The businesses which have been awarded grants ha�e generally been within two blocks of the intersection of Como Avenue and Carter Avenue. Two of the recipient businesses are not in that business district, but they are in Saint Paul and in the neighborhood represented by the business association. The azea served by the association goes from the northetn border with Roseville to Grant Amount: $20,000 � 'Ll 104 � � � � � a�-c�� Interstate 94 and Hennepin to Transfer and Cleveland. This is coterminous with District 12, and it agrees with the contract. The STAR contract was entered into July 5,1996. The first facade improvement began in July 1996, and the last one was finished in December of 1997. Although sweat equity was used on each of the improvements, none was recorded as part of the match. This occurred because there was sufficient money to make a match without keeping track of labor. � Comments: Ms. Dauern indicated that her elcperiences with the STAR Program have been great. The projecYs account officer, 7ohn O'Brien, has been gteat according to Da�ern. She said people at PED seem available and open to questions. � � � � � � � � O � � � f [ITj. � 96.017 Salvation Army East Side Corps Community Center Parking Lot Enhancement Salvation Army of Saint Paul Grant Amonnt: $20,000 Description: The objective of trris project is to develop a parldng lot for 22 cazs across Lawson Avenue north of the new Salvation Army East Side Corps Community Center. This project has not been implemented because the Salvation Army has not acquired the site where the pazldng lot will be located. The property which is in tas forfeiture is adjacent to their Payne Avenue center. Once they obtain the property a pazldng lot will be placed on it. The lot is eapected to provide 22 additional spaces to serve tkeir new East Side location. It is eapected that the additional parking will be sufficient to handle the pazldng traffic created by the Salvation Army. It will assist the community by easing the demand for on-street pazldng. The pmject will serve the customers of the many programs that the Salvation Army offers. It will serve up to 22 vehicles. Contract Compliance: The pazldng lot is still intended to be placed on the pazcel proposed in the contract. The parcel is across Lawton and north of the community center. The contract was entered into August 1996. Although ttus project has not been started and was expected to be finished in 6/96, the puking lot is still intended to be paved. LJltimately this is e�cpected to be completed by the spring of 1998. The func}s are ptazmed to prepare the lot for development and paving. Volunteer participarion during implementation is unplanned for and not expected. 106 �J � � CJ � � � � � � � � � � � � � � �� .• 96.019 Stutcman Block Facade Upper Swede Hollow Neighborhood Association Description: Grant Amount: $20,000 The ob}ective of this project is to improve the facade of the Stutzman Block. This is the second phase of the renewal for this building located at 725 E. Seventh St. Improvements included in this effort aze concentrated on the west and north elevations of the building. Originally there had been a building to the west of 725 that was demolished a number of years ago. The newly exposed exterior wall consisted of fiberboard covered with vinyl siding. There were no window openings. The staircase to the second floor apartment, previously located inside the demolished structure, was not rebuilt to code. During this phase, windows on the first and second levels and a door to the adjoining patio were cut into a formerly blank facade, the exposed chimuey is being resurfaced, combination stomilscreen doors aze being installed on the north facade of the building, the staircase to the second floor apartment was relocated to the north side of the building, and the west end of the building was insulated, sheathed with plywood, resided with wood siding, and painted. This rehabilitation project helped provide the Upper Swede Hollow Neighborhoods Association the opportunity to demonstrate mazket demand for specialized, non- franchised commercial activity in the Dayton's Bluff azea. It demonstrated the aesthetic and economic benefits of using historic preservation as a development tool in Dayton's Bluff. Residents of the neighborhood demonstrated as well as witnessed the commercial strength and potential of their neighborhood. Cazol Carey, the project manager, stated that there were a number of spin-off benefits. Exterior building improvements l�ave made it easier to atiract residential tenants into apartments in the building. The cafe brings many professionals working at large nearby employment centers such as 3M, the Lafayette Park office complex, and Metro State University into the community to spend money, and learn about local housing opportunities. A local business, A Toast to Bread, supplies bakery products and soups for the restaurant, and snmmer produce is purchased from the Dayton's Bluff Children's Gazden project. The cafe's success has also imgroved the marketabi2ity of commercial space in the proposed redevelopment of a mixed-use building at 6th and Maria. Contract Compliance: The rehabilitation occurred at the address indicated in the contract. The contract was signed on July 26, 1995. The facade improvement began in June of 1996 and is expected to be completed in October of 1997. The STAR funds were used to put windows and a new door into the west side of the building; insulate, sheath, reside, and paint the west facade; resurface the cl�inuiey; relocate and rebuild the exterior stairway to the second floor apartment; and install new storm/screen doors on the north side of the building. 107 � 1996 Neighborhood STAR Loan and Grant Program 96.103 394 Dayton Avenue Rehabilitation Project Grant Amonnt: $40,000 College of Visual Arts Loan AmounY: $60,000 Description: The STAR funds will be used for the rehabilitation of 394 Dayton to serve as the College of Visual Arts' library, supplemental media center, additional classrooms, offices, and studios. STAR funds have also been used to develop an adjoining pazking facility. A former aparhnent complex is being converted into a library and office azea for the College of Visual Arts. The building has been gutted, the interior has been reconfigured, and a dilapidated addilion that was on the back of the building has been tom down. As a result of these changes iY was possible not only to create space for the library but also to add a new addition and allot office space. The space will be used for liberal arts faculty, a learning resource center, a cazeer resource center, and a study area for the students. As of August 7, 1997, there were a few more things that needed to be done which included a new exterior door on Dayton, and landscaping for the yazd. This pmject will allow the students more space to study in the library. It will free up space at the college's adnunisiration building , 344 Sununit, to make a class room and a conference room. The rehabilitated building will provide space for the faculty to prepate for lessons and confer with students. The improvements will generate a more attractive environment for students and could increase enrollment and in turn increase faculiy. This pmject will help the CVA meet an improved librazy requirement placed upon them by the North Central Association of Colleges and Schools to secure full regional accreditation . Full accreditation will make it easier for CVA students to transfer and to progress into graduate school. This will make the CVA more attractive and competitive in the field of higher education. T'he neighborhood wiR benefit from the project because a blighted building will be improved and Yhe expected increase in activity and attendance at the CVA will bolster the businesses in the azea. The renovated building will serve the 230 students who attend the CVA, its 47 faculty, the administration, sutmunding properties holders, and area businesses. In particulaz the increased strength of the CVA will help reinforce the local arts scene as present in Lowertown and its annual Art Crawl. Moreover when the library is finished and a security system is installed it will be open to the public. ��'. � � Contract Compliance: Li � � � � � � � � � � ;� � � � a�-iag This project has been implemented at the site discussed in the contract. The address is 394 Dayton. The area served by this project includes Saint Paul and its environs. The student body originates from numerous places. In total the students come from 12 states and 6 countries. The STAR con�act was signed on February 6, 1997. Construction began on April 10, 1997 and was completed by the fall of 1997. The building is now being occupied by the coliege. The STAR funds were used to demolish the reaz end of the building and replace it with a new entrance. The entrance area includes a handicapped equipped bathroom and ramped accessibility. The interior was gutted, sheet rock will be placed on the walls, and the interior space was configured to allow for four rooms on the second floor and four on the first. Volunteer participaUon was not present during the implementation phase save the movement of fiunishings and resources by a few students. Comments: The media specialist, Mary Beth Frasczak, said the new library space is critical to CVA. Now the students have space to spread out and look at drawings, sketches, and designs. 109 � L1 96.106 Gateway to Como Park Lighting Como Commnnity Council-District 10 Grant Amount: $41,207 � Description: The objecrive of this project is to install decorarive lighting on the sma11 commercial strip on Como Avenue neaz Sneliing Avenue as part of the neighborhood small azea plan. The plan calls far the promotion of business development, property maintenance, and safety. The project will have siguificant visual impact and complements the 1995 street impmvements. STAR funds will be used to fund 75% of the cost to install decorateve lighting on Como Ave. beriveen Snelliag and Arona St. This project has not been implemented. The proposal is to install 18 lamps along Como east of Snelling. The Department of Public Works eapect that this will be too many lamp for the designated stretch of Como. Thus they might have to lower the number of laznps or extend the area. Because this pmject has not been implemented it has achieved nothing but it is e�cpected to generate more business acrivity, maintenance, and safety. This has been suggested because recent street paving and landscaping on Como ha�e resulted in the greexring of the azea and increased business occupancy ntes. Additionally it is eacpected to have a wide impact because of its pmximity to the fair grounds, the Como Pazk and Zoo, and Snelling Avenue. The project will serve the businesses on Como. It will in turn serve people from outside of St. Paul as well as within because of the regional popularity of surrounding attractions. It is undetermined how many it will serve Geographically this project is to be located between Snelling and Arona on Como. It has been proposed that it be extended to the west side of Snelling but that has not been detenuined. Theproject skould begin in October.194? and be finished by November 1997. T7�e STAR has not made a difference as to the speed at which tlus pmject is being implemented at least not up to this point. No STAR funds haue been used. The reason thaY tlus is taldng more time is because an assessment is involved. Each property owner had to sign an ageement that they would pay annual assessments. All but two of the properiy owners agreed, and since then the two business that withheld their approval have moved. With an assessment the city council must approve the improvement. The approval of the unprovement has not been reviewed by the council and should be so by October 1997. Neighborhood participation will not be involved during the implementation phase of the project. Public Works will handle the execurion of the plan. � 110 � � � � � � � �� ,� � � � �8- iag 96.109 Arcade/Maryland Face to Face Face to Face Health and Counseling Services Description: Grant Amount: $ 9,050 Loan Amount: $39,370 The objectives of this project aze to landscape, construct a play azea, resurface a parking lot, light ffie pazldng lot, and stucco the south side of the building at 1165 Arcade St. The STAR project at 1165 Arcade has not been implemented. The project is expected to include a gazden space and play azea on the west side of the building and a reconfigured parking lot and refurbished exterior wall on the south side. The newly designed and resurfaced pazking area will eliminate an entrance and lane that run next to the building. A landscaped green area will occupy the former lane. The side entrance to the building will be ramped. A new lane will be located along the southwest portion of the property. A row of pazldng will be lost through the unprovement. 53 spaces will be available. The south side of the building will be stuccoed again. The grant portion of the funds will create a green space azound ffie back. Former loading docks will be transformed into parios. A peace garden will be established. A basketball court will be set up. With the improvements the lot and building will be safer and more visually appealing. Accessibility wiil be increased and liability should be decreased. The side of the building which leaks and has sustained water damage will be repaired and 'unproved. The children who attend the Academy and from the neighborhood will have a safer and more convenient area to play. Overall it is expected that the project will instill a sense of pride, peace, and respect in the clients and neighbors. The azea is sprucing up. A nearby flower shop and laundromat have undergone renovation. However these developments precede the STAR project, and thus they are probably not spin off effects. These improvements will serve the 3,000 clients that Face to Face serves over the course of a year. The staff is served by the gazden and the parking lot. The youth aze served by the play area. The parking lot serves the neighborhood children wka sometimes play in it by pmviding a safer envirorrment. Contract Compliance: The East Side is served through this project. In particular the Payne / Phalen and Dayton's Bluff neighborhoods receive benefit. The wider community of Saint Paut and its environs aze also served. The contract was signed on Febniary 7, 1997. The project should begin on the third week in August �, 1997 and be completed by September 26, 1997. This progress does not meet the expectations set forth in the contract which showed completion of the project by the end of July 1997. Ms. Ricketts cited the main reason why the project took longer than eapected: before project implementation can � begin, the City must approve the vacation of the alley. This approval has not happened yet and has taken longer than expected. � �, Community participation will be a component of ttris project. The peace garden at the rear of the building will be planted by volunteers. 111 � � Ms. Rickets said that the grant element of the financial package made the STAR funds more � attractive. She indicated that the bank seemed to trust Face to Face more than did the City. The � bank did not place as rigorous a set of requirements on them for securing the loan as did the City. The project is now 90% complete as of the end of November, 1997. 112 � � � � � q�- � a� 96.114 Minnehaha Mall Enhancement FYogtown Merchants Associarion Descriprion: Grant Amonnt: $90,000 The objecrives of this project are as follows (i) Update and enhance main entry sign, make high impact enhyway enhancements (2) new center cut driveway (3) define "driveways" in pazking lot, add speed bumps, create a center "town square°, banners and other enl�aucement, (4) and make facade improvements to retail structures. � The project is 75% completed. The entrance, new signage, and pazldng lot definition have been completed. Facade painting was started in the fall of 1997 and will be completed in the spring of 1998. Landscaping will be completed in the spring, as well as more cement work and banners. � � �� It is expected that this project will provide a more pleasant environment for customers to shop. Despite the impxovements Mr. Stuber indicated that the rent should not have to increase. It might stem the flight of commerce from the Frogtown neighborhood. The occupancy rate at the plaza was at 100% before the closing of Snyder Drug Store in late December, 1997. There is work going on to locate a Best for Less food store in that space. The owners of Gala and the owners of the property that Snyder's was in aze worldng with the City's Dept. Of Planning and Economic Development to make this happen. The Best for Less would be run by the owners of Gala. � ` The enhancement project is eapected to serve the community by maintaining the viability of the Minnehaha shopping plaza. Despite I'united traffic flows along Nlinnehaha and Pierce Butler this renovation may act as an invitation to keep people irading in the neighborhood and even bring � people into and through the neighbarhood. Many people auoid the Frogtown neighborhood, and this enhancement might alter people's perception. In this climate business acrivity at the mall may even increase. Contract Compliance: The azea that will be served by the pmject extends from the raikoad line on the north to University on the south and Lexington on the east to Dale on the west. The actual site of the improvement , Minnehaha Mall, is still intended as such. The original STAR coniract was signed on January 6, 1997. It was lost by both sides. A new copy was re-signed on July 18, 1997. Mr. Stuber expects that the project will get underway by the end of August 1997. It is should be completed by November 1997. The STAR funds will be used for signage, parking lot improvements, painting, and landscaping. There has been and there will be community participarion during the implementation of the proj ect. A volunteer consultant has coordinated all the design work for the mall. Sweat equity will be part of the project in terms of the landscaping. 113 96.115 Large Format Printers Giles Guggemos, Inc. Description: Grant Amonnt: $ 10,000 Loan Amount: $145,000 The objective of this project is to purchase and install a Da Vinci 5700 printer. The project has not been implemented. As of August 7, 1997 Mr. Guggemos was in final negotiations for a lazge format printer. Tlus printer has been custom-designed in order to create lazge two-sided banners rapidly. Speci&cally these banners are being tazgeted for trade shows, but fhe mazket is eacpanding to other venues. The machine will be able to paint a banner that is 100 feet by 18 feet. It can paint different images on each side. It will be able to create images on many mediums without seazns. The printer has three resolution settings: low, medium, and high. The production rate for low resolution is 700 squaze feet an eight hour shift; medium is 400 square feet, and high is 210. This machine will be the first of its kind in the United States. Moreover it is ecologically sensitive because it does not use solvent based inks rather water bome inks. The lazge format printer will be set up at their priat shop at 2303 Wycliff. The custom-designed printer will allow Guggemos to offer a superior pmduct more quickly. Mr. Guggemos will be able to continue to charge his clients the same rate per square foot as he did with the last generation of technology because he received a competitive deal on the price of the lazge format printer. This savings was possible because the over-seas manufacturer of ffie machine wants to pmmote this equipment in the United States. Additionally the new printer's high quality product is e�pected to propel Guggemos by e�cpanding its customer base. As a resulY it is also elcpected that two new jobs will be created to staff the new equipment. The presence of this lazge format printer will also help Saint Paul businesses. Guggemos intends to purchase supplies and materials for the printer from three Saint Paul companies. Because of the nature of the product that Guggemos will be supplying, its product will serve a national market. Mr. Guggemos said that although most of its clients are outside of the Saint Paul area that its central location and access to a hub airport makes it ideal for the vast market he is serving. As stated above the project will benefit Guggemos and staff as well as suppliers in the Saint Paul azea. Contract Compliance: This printer will serve the entire United States market with a uniquely clear and ecologically friendly means of creating banners. The contract was signed February 7, 1997. There ha�e been a few delays in getting the printer. First, Mr. Guggemos leazned after weeks of inirial negotiations that the goup they were talking to did not represent the manufacturer of the printer. IIe then hired a I�owledgeable representative to work direcfly with the manufactureis. Second the price chazged took substantial time to negotiate. 114 a�� L� The original price was expected to be $600,000, and currenfly it has been lowered to $200,000. Lastly it has taken more time than expected because the specifications applied to this machine are unprecedented. On August 7, 1997 it was believed that the final agreement and purchase of the printer would be completed within a week. The printer is expected to be delivered within five weeks of that time. The STAR funds will be used on the main flat bed reel to reel printer and the supporting computer components. This is expected to amount to $200,000. Neighborhood participation has not been an aspect of this project. Comments: Mr. Guggemos thinks he is being penalized by PED because he received a better deal than he originally thought. Fiis STAR grant was lowered from $20,000 to $10,000 once it was realized that the printer's price would be lower. He is also concemed because the STAR program starts accruing interest to the loan one year after the contract is signed rather than one year after the money is drawn. Mr. Guggemos believes his situation has extenuafing circumstances and that he should be given the yeaz grace period following the disbursement of the loan. 115 96.119 Highland Village Revitalization Grant Amtount: $99,200 Highland Area Community Council & Highland Business Association Description: The objectives of this project will be to improve the streetscape and customer pazldng in the heart of Highland Village. It will be accomplished by enhancing and adding customer parking in tlus vibrant commercial azea It will also be done by updating and repairing improvements made under the Highland Village Plan, completed in 1987, repairing and adding planters, fencing, installing trash receptacles and new landscaping of both public and private property. This is a cooperarive effort between the district council and Highland azea businesses and property owaers. This project has been partially implemented. The initial pmject included loan and gant funds. The loan component of the pmject was dropped in January 1997. As part of the project the planters which line the intersecrion of For3 Parkway and Cleveland haue been refurbished, but not replaced as indicated in the contract. Evergreen shrubs that were in the planters have been replaced with flowering perennials. The three medians that converge at the intersection of Cleveland and Ford ha�e been replanted, wood chips, and bricks have been laid. Three business store front have been renovated, and seven more are sIated for renewal. Additionally bike loops wiII be added along Ford and Cleveland, parlang lots with a total of 130 pazking spaces will be repaved, and fencing will be added at the eastem end of the properly on the southeast comer of the intersection. Because of the grant and loan money that the STAR program awazded to improve HigUland Village the business association for the community was able to offer its members an opportunity to receive an addirional resource that tUey otherwise might not have had. This service reaffirmed the role of the business association for the village. According to the pmject coordinators, Shawn Bartsh, Beth Berg, and Crayle Summers, the improvements to the village gave the community a better commerce center in which to conduct transactions. Because of the physical improvements, Highland Village is more appealing and competitive. Business aze staying and growing stronger. The improvements are giving them an edge. This project serves the residents of the Highland Park neighborhood. It also serves customers from outside the neighborhood who patronize the village because of its unique services and ambience. Contract CompGance: The area served by this project includes all of southwest Saint Paul. It covers an azea from the Mississippi River and West 7th Streei to the Grand Avenue Commercial Zone. The STAR contract was entered into February 7, 1997. The implementation of the improvements began in the early part of 1997 and should be completed by the end of 1997. 116 � � � j� , ♦ The STAR funds were used to pay for a portion of all the improvements which were part of this project. The money has gone toward three business facade unprovements and creating additional visual complements and physical amenities at the intersection of Ford Parkway and Cleveland. � There has been no sweat equity present during the implementation stages of this project. All of the required labor was contracted. %i Comments: The pmj ect coordinators stated that this has taken more time that they eacpected because ;� they did not have sufficient resources to administer the project. With some allohnent toward � administration fees the project would have been accomplished more rapidly in their view. Ms. Bartsh, one of the project coordinators, said that getting the match was not too difficult but finding the time was. � � � � � �� 117 � � 96.122 Sel-Dale Laundromat John F. Krebsbach Jr. Grant Amount: $30,000 � Seed Capital: $20,000 Description: The objecrive of this project was to acquire and renovate 662-664 Selby into a laundromat . This project has been implemented. A run down vacant building that once served as a night club was gutted and partially razed. Two of the walls were replaced and part of the roof. The 3,000 squaze foot interior was prepazed to be converted into a laundromat. The overall pmject cost approximately $600,000. It houses 38 washers and 36 dryers. It is also equipped with handicapped accessible bathrooms. As part of the project a garage direcfly to the west of the laundromat was tom down. A pazldng lot was put in its place. The addresses of these properties aze 662 & 664 Selby respectively. Mr. Krebsbach, the laundromat owner, also owns a business which rehabilitates housing. He generally does not put washers and dryers in the houses and duplexes which he rents out. Additionally he realized that there were no public laundry facilities between Grand and University, so he decided that this was a good niche and a convenience to some of tris tenants. Additionally Mr. Krebsbach saw flus as a convenience to the neighborhood in general. His laundromat offers laundry delivery to shut-ins at a discount. Along with other near by development the laundromat is adding to the attitude that ttris area can once again be a thriving commercial district. The Sel-Dale Laundromat has a customer base of 500-600 faznilies. Its drop off service has appro�mately 40 customeis and is increasing. The racial mix of the laundromat is diverse with no one group being a majority. The business has created three full-time jobs and a part-time job. The pmject occurred at the site proposed in the contract. Mr. Krebsbach indicated that the service azea for the laundromat is from downtown on the east to Sne]Iing on the west and Grand on the south to Minnehaha on ttte north. The contract was signed on October 3, 1996. Construction began in October 1996 and was completed by January 25, 1997. The winter weather caused up to a month delay according to Krebsbach. The STAR facilitated the delay because of when its cycle begins. Mr. Krebsbach did complete the entire project within the prescribed times of October 1996 to August 1997. T'he STAR funds were used to pay for water and sewer access and architect bills. These amounted to $50,000. Receipts and the reimbursement report in the ceniral file confirmed these eapenses. The receipts include expenses for plumbing, roofing, IIooring, and elechic. Mr. Krebsbach was disappointed with how late in the year lus project had to start in light of the STAR cycles. He could not start anything until the contract was signed and that was not until October. Winter slowed him down. In fact lus equipment supplier Speed Queen wanted to penalize him for startiag later than they agreed upon. He was also discouraged that he had to pay sewer and 118 ��- �a� water access charges. West Saint Paul offered to chazge him no access fees. He did not understand why Saint Paul would chazge despite the fact that they aze eagerly trying to attract new businesses. 119 � 96.123 Builtling Community and NeigLborhood Capacity Lao Family Commnnity of Minnesota Description: Grant Amount: $25,000 � The objective of this project is to repair the roo� flooring, windows, interior walls, and pazking lot of the Lao Family Community Center. In addition landscaping of the siurounding grounds is planned. This project is partially iunplemented. The Laos Family Community Center is currenfly being renovated. A flooded second floor auditorium has had its roof repaired. The floor of the tYus space was linoleum but af�er the flooding it began to crack and curt up. It has been replaced with a terrazzo floorwluch is set in concrete. The auditorium is 3,100 squaze feet. Mr. Vang, the project director, said that they still plan to repair the pazldng lot and the windows. Questions haue come up abouf the eIigibiIity of the roof and windows. Tfie roof was fixed rivo months before the coniract was signed, and the window work is for tinting. According to Joan Trulsen the first improvement is reimbursable, but the second is not. Mr. Vang did not discuss interior wall improvements, but while visiting the site it appeared that volunteers were painting the auditorium. Appazently they do not plan to use STAR funds for that part of the project. This project has helped the center pmvide an appealiug meeting azea for the community. Mr. Vang said with the new floor it will be easier to clean. It is an asset to the entire community not just the Htnong population. Mr. Vang said that on average two groups a day use the auditorium. The sizes of the groups vary from 50 to 400. However use is not limited to the East Asian communities. In fact, according to Mr. Vang 40% of the auditorium's usage comes from the "mainstream" population. He said they like it because it is close to the capitol, close to downtown, and there is sufficient pazking. Contract Compliance: All of the STAR improvements have or will be done to the property at 320 W. University. This information concurs with the address set forth in the contract. The geographic azea that the project serves is wide and includes the Twin Cities and much ofMinnesota. The STAR contract was entered into December 15, 1996. They began with the roof in November 1996. The improvement of the auditorium floor began in mid-May 1997 and was completed by 7une 20, 1997. Mr. Vang believes that the project will be fully completed by the end of 1997. The STAR fixnds have been requested to reimburse expenses associated with the clean up and laying ofthe new floor. These e�tpenses were $3,300 and $30,000 respectively. Mr. Vang thought there was about $5,000 still not reunbursed. He plans to use that on the pazking lot and windows. f`�17 \� � � � � � � �" � � � � � � � � � � � I � �! Mr. Vang indicated that all the work was contracted out. He said there was no sweat equity involved. It appeazed that there was a volunteer effort undenvay involving the painting of the auditoriunn walls. Mr. Vang did not mention this but perhaps they are not using it as part of the match. Comments: Mr. Vang thinks that if the City really wants to build in the community that the STAR should not require a match especially on the grants. He said that it would be easier to borrow the money from the STAR and pay it back than to be given half the money and have to raise the other half. 121 96.126 MacLaren Hill Condominium Association Reconstruction Project MacLaren Hill Condominium Association Loan Amonnt: $270,000 Description: The objective of this project was to correct construcrion and design defects by the original developer, contractors, and azclutect. Work included eliminating garage gas infiltration, addressing serious water infiltration through site improvements, replacing rotted decks on the condominiums and entrance canopies on the townhouses, and replacing rotted siding and painting interiors and exteriors. This project has been implemented as the associarion has determinecL Because of structural defects and weathering many of the wooden decks had become unsafe and had to be closed. Because of the STAR, MacLaren Hill was able to renovate 84 decks and remove 32 defective canopies. Alttiough thete aze 122 units in the condominium portion of the development, 38 did not need any work because the deck designs were sound. The new upper level decks were reinforced with two steel supports and the wood was replaced with sealed cedar. Metal railing runs on top of cedar sides of the deck. The decks' dimensions aze 6 feet by 9 feet. Half of the ground levei decks were also made of cedar. In an effort to reduce maintenance and deterioration these were all replaced with concrete patios. Other improvements that were done in concert with the decks included the creation of a circulation system in the common areas of the condominium in order to reduce the accumulation of moisture and new external siding installed with vapor barriers. One depariure from the contract was the fact that all the canopies were not replaced. The decision was left up to the resident and some declined the option because of the additional assessment. As a result of this project the condominium association was able to eliminate a safety hazard. Moreover it was able to improve the appearance of the community. Peopie aze now able to get outdoors conveniently and this has helped to build community. The association is currently scheduled to paint and landscape the buildings. This kas helped stabilize a residential area and stave off the units from being tumed into rental properties. This project serves the residents of MacLazen Hills and the surrounding residents. There are approximateIy 140 members of the condominium association. Contract Compliance: The properties that were served were 13�2, 1390, 1392 Cazling Dr. and 1335-1413 Spencer Road. This agrees with properties discussed in the contract. The STAR contract was signed on October 16, 1996. Construckon began in October 1996 and ended in April 1997. The work was completed within the progress schedule discussed in the contract. The designated comple6on date was 8/97. There were a few hindrances according to the project manager, Tom Spivey. First the conlractor had health issues which kept him from worlang. Second the winter weather slowed the process down. Third, there was a work stoppage associated with a misunderstauding about workers' wages and benefits. In ttris case some of the workers who received STAR funds were not being compensated for benefits that they were guaranteed under the 122 � � � � � � � � � , � � ,� � � � � � � !� . � STAR. To compensate, the contractor increased the wages for workers without benefits. The workers with benefits compiained that the others were being paid more, and until it was corrected they stopped worldng. This stopped work for a time but Mr. Spivey did not say how long. The STAR funds were used to renovate 84 wooden decks and concrete patios as well as replace a few wooden canopy overhangs. The money went to cupentry, materials, and sealant. The work was conducted through a contractor and did not involve volunteer labor. Comments: The process was slowed down because of labor requirements and the speed at which bids were offered. Mr. Spivey described the process as long. Restored decks at MacLaren Hill Condominiums 123 � 96.128 Minnesota Boat Club Restoration Minnesota Boat Club Grant Amount: $55,000 � Descripfion: The project consists of Phase 1 renovation of the Minnesota Boat Club (MBC), home of the oldest athleric insritution in Minnesota, A Saint Paul landmark on the National Historic Registry. Improvements include renovation of extema2 parios and chinuieys, replacement of fhe second level great room flooring, restoration of the extemal stucco and restoration of windows. The home of the Minnesota Boat Club on Raspberry Island has deteriorated due to floods and vandalism. The restorarion is partially completed. The patios and clunmeys have been refurbished. The repairing and replacing of windows, new stucco, and restoration of the floor sfill remain to be done. Other improvements haue been implemented at the same time however they are not part of the STAR renovation. They include landscaping and removal of heavy debris accumulation after this winter. According to Doug Olson, the project manager, these impmvements aze maldng the club look better. Moreover these efforts aze protecting an historic site. This project is benefiting the community at large because local and regional schools take advantage of the lraining programs that the boat club offers. High school students from Central and Forest Lake aze well represented among the membership as are college students from St. Thomas and Cazleton. The membership of the club fluctuates from 70 to 125. The number of new people involved in 1997 jumped by 40. In prior years it had only risen by 20 per yeaz. The age composition of the club breaks down as follows: 25% high school students, 40% college students, 25% professionals, and 10% over 50 years of age. Contract Complianee: The STAR funds are specifically serving the club house site at 1 South Wabasha on Raspberry Island This agrees with the terms of the contract. Generally the Minnesota Boat Club serves the East Metro. The STAR contract was signed on January 20, 1997. Work began on the patios and chimueys in early spring after the spring flood debris was cleared. This work was completed by eazly snmmer. The bids on the windows were just received and wi12 be initiated and completed by the end of fall. Olson eapected that the floor would be replaced over the winter of 1998. The primary delays on this project have been the flood and delays getting matches for the funds. The STAR funds have been used for Yhe patios and clunuieys. It cost about $ Z 0,000. ABer receiving recent bids it is expected that windows wili wst in the mid-$30,000 range. Olson was unsure about the costs associated with the new floor and stucco. Since the flood waters earlier in 1997 subsided the main delay has been the difficulty of getting matching funds. � 124 � � � � � � � �" � � � � � � � � � � ��-ia� Participation of the members was part of this project. The azchitecturai design was donated. Additionaliy boat bay doors and windows were built by other members. Comments: Olson indicated that he thought there was too much paperwork. He said it was difficult to get the targeted vendors to come out and give a bid on the work. The Minnesota Boat Club 125 � 96.133 Frogtown Entrepreneur Center Frogtown Entrepreneur Center, LLC Description: Loan Amount: $ 86,500 Seed Capital: $154,500 As part of collaborarive effort to foster economic development activifies in the University and Dale area, Neighborhood Development Center, Inc. (NDC) and Frogtown Action Alliance (FAA) through Frogtown Entrepreneur Center, LLC witl acquire and renovate the former Dakota Microfilm building located at 501 North Dale Street into the Frogtown Entrepreneur Center which will be an incubator facility for neighborhood/Saint Paul entrepreneurs from which to operate their businesses. In November, 1997, the project was completed and began leasing to tenants. There aze currently 11 tenants in the building including Inner City Rehab; Moua International Communications; Multi- Pure; Newell Abatement Service; Queenie's Bus Tours; Steven Insurance; Security Financial Consultants, Inc.; Robert McClain Photography; the Siebert Group; and Non-Profit Consulting Associates. Only two spaces remain vacant. The project has taken a vacant and blighted building and renovated it into an attracfive, productive community asset. As a result of the proj ect, eleven neighborhood businesses aze growing and serving the Frogtown community. Contract Compliance: The site that was originally designated in the contract is the site at which the project is being implemented. It will serve all of Saint Paul but specifically benefit the azea from Rice to Lexington and the railroad to University Avenue. The STAR contract was entered into December 30, 1996. Renovation began in May of 1997 and was completed in November 1997, when the project opened for business. The STAR funds were used for acquisition and renewal of the building at 501 N. Dale Street. Most of the pmject was implemented through contracted labor, however, there was some sweat equity as part of the match. 126 � � � � � � � � � � � � 96.141 Phalen Corridor: Williams Hill The City of Saint Paul Port Authority Description: a�-ca� Grant Amouut: $250,000 The objecrive of this project is to clean up blighted and poliuted land to create living wage jobs. This is a continuation of project #95.158. The following is a copy of the report from that interview. This project , which will occupy the Williams Hill secfion of Saint Paul, has not been implemented. This is a business park development. It will encompass five parcels on a total site area of 25 acres which can be developed. The pazk is zoned I-1 usage, so it will be targeted toward light manufacturing and industry. Currently the land is going through remediation. After that the land will be reshaped to accommodate the planned activity. Later the urilities and roads will be added. "The STAR funding is crirical," accozding to project manager, John Young. There is a nartow margin for error in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awazding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are chazged with spnrring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that wiil occupy the pazk, there will be a recognizable positive effect. For instance, the Port Authority requires 60% ofthe project tenants' employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the pazk employ one worker per 1,000 squaze feet of enclosed space. This acts in combination with the fact that the Port also mandates that businesses develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees will work in the business pazk when it is fully developed. This is strengthened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. Tbe project will directly serve approximately 5 light manufacturers and their employees. Factors � such as the locally made content of the inputs and the markets of the final products will deternvne who is being served. � Contract Compliance: � The project is still set to fall within the boundaries established in the contract. The service area is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northern rail line tracks on the north and east. � � � � The coniract for this project was entered into March 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The mads and utility services aze expected to be finished by September 1998. 127 �l No STAR funds have been used on this project because no capital impmvements have been made. � First remediation must be completed. After a month(9/9'� that process should be complete. This ' necessary step has slowed the completion process. Also funds that are pending for this project from economic development must be received before the STAR funds can be used. If they are not then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors � aze addressed Mr. Young believes the total project should be finished and ready for business development by September 1998. � 1 � � � � � � I i � � � 12g � � � � � � � � � 96.145 RAP Midway Area Head Start Program Ramsey Action Programs, Inc. Description: �i . � GrantAmount: $100,000 Loan Amount: $100,000 The objective of ttris project was to renovate 6,725 square feet of space in the building located at 450 N. Syndicate. It is being used for the Bigelow Head Start Program and includes an outdoor play azea currently under construction. Tlris project is 100% completed but not all of the features indicated in the contract will be realized as a result of STAR funds. The 6,725 square feet of interior space at 450 North Syndicate designated for the Head Start Progam have been renovated, including four classrooms, two offices for the center manager and social workers, a pazent room and ldtchen. Each classroom is brightly colored, with excellent natural light, a utility azea, and mud room space. Each classroom has two toilets and sink. The playground renovafion ($55,000) is funded with community development block grant funds. This Head Start Center complements a wide array of other social services housed at the Bigelow � Building and promotes easy access by clients to other services. The Bigelow location is also beneficial to residents of a nearby lazge rental complex at 1247 St. Anthony, which offers Section 8 housing. Pazents and children do not haue to cross a busy thoroughfare to reach the center. � � � � � � � � The center serves 136 children: 17 children per classroom session. The children attend either the moming or afternoon session. During the first yeaz 62% of the children enrolled aze African American, 32% are Asian, 3% aze Hispanic, and 2% are Caucasian. Contract Compliance: The geographic boundaries for the center aze not absolutely defined, however most attending children live in the Midway area. The contract was signed on February 7, 1997. Conshuction began June 1997 and ended September 16, 1997. In the contract the completion month set forth was 7uly 1997. The STAR budget was used to completely renovate designated space for Head Start in the Bigelow Building. The expenditure covered the gutting of the interior, putting up new walls, replacing the ceiling and the floor, n,nning new plumbing and electricity, and putting in bathrooms for each rooms. Comments: According to Mr. Pickering, using the STAR Program makes it easier to get matching funds and contributes to community revitalization. 129 96.151 Coordinated Housing Investment Program(CffiP) Local Initiatives Support Corporation(LISC) Description: Grant Amount: $200,000 Loan Amount: $300,000 CHIP is designed to stimulate purchase/rehabilitation and refinance/rehabilitation mortgage transaction in selected St. Paul neighborhoods. The objective of this initiative is to implement, in a coordivated, cost-effective faskion, a set of &naacial and non-financial pro�am components that will assist in removing barriers that have traditionally kept private lenders from doing purchase/rehabilitation lending in more economically distressed market azeas. This project has not been implemented. Local Initiatives Support Corporation is the lead agency on tlris project. The project will concentrate on two neighborhoods which e�ibit difficutty getting traditional bank financing yet ha�e pmven rewrds of getting homes rehabilitated. The chosen neighborhoods aze the East Side and the West Side. The East Side is comprised of three groups: Dayton's Bluff Neighborhood Housing Services, East Side Neighborhood Development Company, and North East Neighborhoods Development Corporarion. LISC has determined which financial institutions will partner with them. After going through a competitive selection process First Bank was chosen. Mr. Peacock, the project manager, thought that Twin Cities Federal would be a designated lender for the program despite the fact that they submitted their request to be part of the program late. The project will not limit the type of recipients. In particulaz a11 the participants do not have to be first time home buyers. The project will help with acquisitaon as well as rehabilitarion. The program will offer second mortgages and gap financing. Home values will not be in excess of $100,000. It is not abundantly cleaz exactly how they aze going to increase home ownership. He said there is tto restriction on the housing status of the perspective owner, and there is going to be no special effort placed on tryingto convert formerty rented pmpertiesto flome ownerslup. Cf�P sees itseIf as a better alternative in some situations than is the City's Houses to Homes Program. CHIP only relies on some g�vemment assistance, and it intervenes eazlier in the deterioration process. Although no homes have gone through tlus process, it has given LISC a tool to combat urban decay. The community should also benefit from tFus reinvestment, Tfie seIected neighborhoods should stabilize as they see more resources stay in the area. People's willingness to finance a home with gap finaucing speaks volumes of the confidence that will filter through the community gradually. To enlist real estate agents the West Side community is planning to pay the agent a percentage of the price of rehabilitation rather then just a commission on the sales price. Because implementation has not occurred yet it is not clear, however it appears that the NDCs and the neighborhoods they serve will be benefited by the projects. It is still expected that 35 homes will be served. 130 �. � � �� 1 � � �� q�- la� Contract Compliance: This project will serve the geographical azeas expressed eazlier. The contract for this project was signed on Febniary 7, 1997. The project got underway in June 1997. The financial partners were chosen by mid- 7uly 1997. It is expected that the purchase/rehab will begin in October 1997 and should be completed before ttte end date discussed in the contract of January 1999. The STAR funds will be used for rehabilitation and some acquisirion. The mix of loan and grant will vary from home to home and neighborhood to neighborhood. Homes located in enterprise communities will only get loans because they are getting help from a fund other than the STAR. If the home is outside of one of these azeas it will be eligible for grant and loan funds. The loan will haue a 2% interest rate on it. Comments: Mr. Peacock thinks that worldng with the STAR fund can be onerous. There aze many requirements. He does not believe that it is being administered in a way that it can serve its intended audience--those unable to use private financing. He subscribes to the Urban Initiatives Model as admanistered through the Muuiesota Deparhnent of Trade and Economic Development. The model shows that loan recourse goes to the end borrower. The community paztner (the intermediary agency) is not responsible for paying the monies back to the program. The reason that recowse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regularions and requirements. 131 � 96157 & 96.158 Salvation Army Community Center The Salvation Army of Saint Paul Description: The objective of this project is to insulate and coat eacterior walls of the e�cisting Salvation Army buildings in addition to building new construction which will create a unified appearance and increase the energy efficiency of the building. The project will also include a new parking azea; landscaping; developing a secure playground; demolishing the condemned Gem Building; demolishing an elcisting house on aa adjacent pmperty and establishing urban pazk. This project is currently being implemented. The portion which was completed was the demolition of an old house on a triangulaz property between tFte Saivation Army and West Seventh St. A temporary pazking azea has been placed on the cleazed lot. As progress is made on the proj ect the space is eacpected to be used as a sma11 pazk, Across Smith, the former Gem Theater is located. Tlus structure which was built in 1911 has been condemned. Since it was acquired by the Salvation Army it has functioned as the site for its social services program. This structure is slated for demolition on August 7, 1997. Up to this point the land has been prepazed for redevelopment. Contamination from old gas tanks has been cleaned up, and an old well for coolittg the theater has been capped. A new 2 floor structure will be set on the basement of the former theater. The new space will house around 10 offices, four class rooms, and a nursery. The second aspect of construction and impmvement will include the rehabilitation of an old gymnasium space into a dining ha11, latchen, and fitness room. With the completion of ttris redevelopment, the Salvariott Army will be able to offer its clients more privacy in the new social services area. It will be able to provide meals to senior citizens and the homeless in a safe and clean environment Tlvs pmject will serve the community by improving the appearance of a gateway into an historic neighborhood. This facility provides services to approximately 500 people a day. Not a11 of them wi11 be using the new space, but indirectly it will positively impact the remainder of the site because it will allow the Salvation Army to provide sufficient space for all activities thus ending the competirion for limited space. DirecUy it will heip about 200 people who use the senior and fiomeless food service daily. Moreover it will help civic groups like the Boy Scouts who will use the new classrooms. It will benefit the social workers, their clients and the cluldren who use the nursery facility. Contract Compliance: The dexnolition, construction, and improvements are being done at the comer of Smith and West Seventh . This location is the same address as was indicated on the contract. This center primarily serves the neighborhood and Saint Paul, but there aze recipients of services from outside the area. He did not have a break down. Loan Amount: $542,336 � � 132 �. � � �8 The contract was entered into February 1, 1997. Implementation of the project began in April of 1997. The construction of the structure and extemal aspects of the project are projected to be completed by November 1997. The interior work in the new building and the gymnasium aze expected by spring of 1998. � Because a general contractor has been hired for this project, there is no plan for neighborhood participation to be a component of the implementafion of this plan. � � � � � � � � � � � � � 133 � � 96163 Ramada Hotel Starbonnd LLC Saint Panl Hotel Loan Amounr: $350,000 � Description: The project included a total of $3,617,143 in total project cost. Starbound is in the process of: paying the back t�es ( of previous owner), paying the remainder of the purchase price, and major renovation to the hotel. The STAR funds were applied to the renovation of the hotel. This project has been unplemented. The properiy at 1870 Hudson Road was renovated. As a result 30 rooms were reopened, the exterior was refurbished, and the parking lot and landscaping were impmved. Moreover the lobby was renovated to make the inn more inviting. Because of this project there now is a place on the east side of St. Paul which grovides qualiTy accommodations to the business petson as well as the leisure traveIer. This has benefited the businesses of that area. 3M previously used the convention and meeting space of this facility. As the hotel fell into disrepair 3M curtailed its business association with the facility. Cuirently 3M has resumed this business relationship because the renovation has brought the convention center up to an acceptable level of quality. This project serves the Ramada Inn and its employees. Over 50 new employees have been hired as a result of the renovation and the increased business. City residents aze benefited because a business has been placed back on the tax ro11s. 3M and othet neazby business are served witk an improved bank of accommodations and convenrion facilities. Contract Compliance: The improvements occurred to the property Iisted ia the contract at 1$70 I3udson Road. Because of the nature of the business many if not most of the customers of this Ramada are not from Saint Paul. In light of its location neaz an interstate highway and relationship with the international manufacturer 3M the service area is broad and not prone to definition. The renovation began in the winter of 1996 and was completed by spring of 1997. The STAR Budget was utilized for remodeling the east wing of the hotet. � f�Ci� � � � � � � � � � � � � � � � � � � 96.168 University-Midway Neon Sign Project University United Description: ��-�a� Grant Amount: $80,000 The project consists of providing a matching STAR grant-private loan financing package for installarion of approxixnately 30-40 neon signs for businesses on University Avenue resulting in the creation of a more unified signage appeazance. The Project will complement current facade isnprovements and contribute to a safer environment through increased lighting. This project has not been unplemented. C�urently the project manager, Irene Rodriguez, is promoting the project. She is e�cpecting that some of the participants from the Midway Facade Ixnprovement Project will take part in this also. In fact while discussing facade improvements with first phase grantees she informed the businesses that they might want to postpone sign improvements unfil the Neon Sign Project got underway. Ms. Rodriguez indicated that she believes the project will continue to develop as described in the contract. Since nothing has happened the topic ofpopulation served will not be touched on. The contract was signed Febmary 6,1997. The progress schedule is starting off later than described in the contract. Ms. Rodriguez believes it can be completed within the designated completion date ofFebruary 1999. Update as of January 21, 1998: iJDIITED will launch the Neon Sign Project with a week long community artist e�ibit at Wiikins Dodge the week of February 3-8, 1998. Neon signage from local artists and business will be displayed to spur interest. Various community art projects will also be highlighted, to spur community involvement. T-shirts with the City's STAR Program logo will be given to the public from drawings. I7AIITED will request the presence of Mayor Coleman and the STAR Board. The event will be open to the public and a press release will precede the event. It is estimated that approximately 30 grants will be awazded. 135 96.169 West 7th Commercial Revitalization West End Business & Professional Association Description: Grant Amount: $ 50,000 Loan Amount: $150,000 This revitalizarion effort will enhance the appearauce of commereial sites along West Seventh through store front renovations and other physicaI improvements. This project is beginning to be implemented as of September 1997. The focus of the project is a revitalization of commercial sites along West 7th Street. The improvements will be accomplished through store front renovations. Because the West 7th Business Association has imposed maximum limits on loans and grants of $2Q000 and $2,000 respectively, a minimum of eight business can be served by this project. At this point one business has completed the renovation of a store front. The business is Vildng Construction at 244 West 7th Street. Other businesses on West 7th Street have been approved by the business association to receive funding through tlus revitalization effort but none have begun the improvement pmcess. Because of this pmject the West 7th Business Association fias gained exposure and credibility among the businesses in the community. In fact this revitalization project has increased membership in the association. Additionally this project helps the business association raise funds from other sources. According to James Smith, the project manager, it would be premature to comment on the impact that the project has had on the lazger neighborhood because little has been done to this date. First this project serves the businesses on West 7th Street. The businesses which can be assisted do not have to be members of the business association, and in fact some of approved parties aze not. After the funds were awazded to the West 7th Business Associarion a publicity event was held at a West 7th Street restauraut. Roger Amimdson, a project coordinator and IocaI banker, stated that around 60 business ocvners were in attendance. Flyers have atso been distributed door- to-door to local businesses. This has created a core of seriously interested potential participants. This project will ultimately serve the customers and residents of the azea, but at this eazIy stage it is nof possible to say who that will be. Contract Compliance: The azea served by the project is limited to the properties directly on West 7th Street. Smith said that half the funds are intended to go to businesses between Victoria and the Mississippi River. The other half will go to the area of West 7th between Kellogg and Victoria. The STAR contract was signed in January of 1997. Promotion of the project and the fust facade nnprovement began in March 1997. It is expected that the project will be completed by the anticipated and contracted elcpiration date of January 1999. The project bas gotten a slower start than expected because the contract took a few months Ionger to sign, and businesses seem unable 136 �. � � � � �� .� or at least unwilling to match the funds provided from the STAR for the projects. Another major conhibutor to the slower than expected progress has been the fact that the West 7th Business Associarion has not been able to raise ffie funds to hire or at least assign labor to the task of organizing this project. As of early September 1997 no STAR funds had been disbursed. Thus directly the STAR has not been used for any physical improvements to date. In the case of Viking which has completed its unprovements and has been approved for funding the appropriate reimbursement paper work has not been received. � It is e�cpected that all the work necessary for the implementarion of this improvement project will be contracted labor. In the case of Vildng Construction this may not hold because they actually executed the improvements with their staff. � � � � � � � � � � � � Comments: Mr. Smith stated that the paperwork was almost overwhelming. The presentation of the contract to the West 7th Business Association took about six to eight weeks. Mr. Amundson thought that was too long a delay. Beyond complications and delays, both Smith and Amundson concurred that misinformarion was given to them about the STAR and its relationship to their project. This included whether fees would be deducted from their STAR funds. 137 l�' � 96.170 Lyngblomsten-West 7th Senior Housing � � The contract has not been signed, and nothing has been implemented. The project has requested � an additional subsidy from PED. It was being reviewed during the middle part of August 199 7. A hold has been placed on the STAR aspect oFthis project unril the review is completed. Allen Cazlson, the account officer, said that a decision on the subsidy should be issued within the next � couple of weeks. He believes that the decision will be affirmative for at least some subsidy. The contract should be signed within 60 days following a decision to subsidize. � �j � � � l� � � � � � � � � �. � � A. Introduetion Cultural STAR Report a�- } a� � This report examines the C�ltural STAR Program for cycles 1995 and 1996. It considers the program's strengths and weal�esses by looking at the individual projects and programs that � consritute the Cultural STAR Program as well as overall andicators of the program's performance. The report focuses on ttte level of success that the progrun has had when meeting the desired outcomes outlined in the guidelines. The examination discusses circumstances and � strategies which have helped the program to meet its expected outcomes and idenfifies areas for improvement. The report emphasizes the opportunities and threats which aze present to the Cultural STAR Program. It proposes options and recommendarions for enhancing the program � by taking into account the program participants, the e�ectations of the City of Saint Paul and its staff, and most of all the needs of Saint Paul residents, the cultural community and businesses. � ;� � � � Inforxnation for this report was acquired through interviews and reseazch of program files and documents. The interviews were conducted with neighborhood project managers, Deparhnent of Plannuig and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who aze generally the best informed source of information on their particulaz project or program, gave updated information on their accounts and also identified concerns that they have with the Neighborhood STAR Program. This report was prepared by Fran Burns, a graduate student of the Humphrey Institute of the University of Minnesota. It is an independent report. The options and recommendations presented are those identified by the author and are based on his interpretarion of the information gathered thtough the interviews_ B. Objectives of the Program � The folowing objectives are listed in the program guidelines adopted by the City Council: � 1. 2. 3. � 4. S 6. � 7. � � � Provide cultural and economic benefit to Saint Paul Leverage the sales tax dollars with private resources Create and/or retain jobs Enhance and support the cultural dishict as a visitor attraction Develop relarionships between the cultural district and the neighborhoods Stimulate vitality of downtown Support and enhance Civic Center improvement 139 STATUS OF'THE 1995 STATUS OF THE 1996 CULTURAL STAR ACCOUNTS CULTURAL STAR ACCOUNTS Status of Project Acwwrt Disbursements for 1995 Culturei STAR 6 (66.7%) 1 (11.1%) 2 (222%) �fUlly onone �partially Project Completion with Anticipated Period ' for 1995 CulWral STAR 5 (62.5%) 3 (37.5%) Status of Projec[ Account Disbursements for 1996 Cultural STAR 3 (33.3%) 6 (66.7%) �fully o none Project Completion within the Anticipated Time for 1996 Cuitural STAR 4 (57.1%) 1 (14.3%) 2 �Z8.6%� � .yes o no ect95. �Snot�ndu usenocontrac[wasexepll Prqeet Completion wkhin the Contraded Period � far 7995 CulWral STAR 8 (10Q.Q%) ■yes Project Completion within the Contracted Period for 1996 Cultural STAR 6 (55.7%) 1 (14.3°/a) jxt 95.W9 is not fntluaetl befause no mnt2awds e[eW1e0. All yp�¢�[ �pnhaqs are achve Exhibits 2.1 140 �. � �. � � � � � � � � � � � � � � � Improvements Funded Through the Cultural STAR Program Q� �g Interviews with the 18 Cultural STAR project pazticipants indicate that revitalizarion is occurting in the cultural district of downtown Saint Paul in part because of the Cultural STAR Progam. As of October 1997 eight of the projects have been compieted. Four of the projects were cultural orgauizarion facility impmvements; two were streetscape/pazk projects; and two were commercial rehabilitation projects. The C�lt�u�al STAR funds have been allocated with funds going to each development types. The lazgest amount ofmoney goes to cultural organizations. They received over 50% of the funds in both 1995 and 1996. The other two development types received the balance. The allocarions for these types fluctuated between 1995 and 1996 . D. Pr�ress The Cultural STAR projects have up to two yeazs to complete projects while still under contract. The fust Cultural STAR contract for 1995 or 1996 was signed during February 1996. Thus, the first contract will expire in February 1998. When considering the date of contract expiration, the progress of the C�Itural STAR projects is excellent. In fact it is projected that all except one project from cycles 1995 and 1996 will be completed. This projected completion rate is not surprising if one considers that 8 projects have akeady been completed. The completion rates are high because of three critical reasons. First, the cultural organizations generally plan the processes of design and implementation extensively. Second, the Cultural STAR grants are generally small and do not require massive coordination. Third, the Cultural STAR projects have two years to be completed while the Neighborhood Smali Grants contracts are generally for a'one year period. As shown in e�thibits 2.1, the anricipated completion rates according to the rimelines defined in the contract are not neazly as impressive. The two major reasons this has occurred are because the initial groups to apply for Cultural STAR funds underestimated their comple6on schedules, and also because a few of the groups had organizational problems during the first part of the program. Overall the progress of Culttzral STAR projects has been impressive, and it appears to be able to maintain that level of accomplishment. E. Com�liance The majority of the Cultural STAR projects for 1995 and 1996 have remained in compliance with the guidelines of the program and the requirements of their project contract descripfions. All of the completed projects have been executed within the scope of the guidelines. Of the incomplete pmjects, eight aze expected to be in full compliance. The rema;ning two projects are not or at least may not be in full compliance with the guidelines or contract. The reason "may" is used in the last sentence is because one of the projects that would not comply has not been completed to the extent that non-compliance can be assumed. Two of the projects appeaz to have problems complying with the guidelines. The first project with such a situation is the Science Museum of Minnesota. The initial disbursement of $300,000 went to the Saint Paul Foundation to pay off an indebtedness that the museum had incurred to acquire a portion of the land on which the museutn 141 � will be located. Money in the Cultural STAR is expressly designated for capital improvements and not for the acquisition of property. The second such possible non-compliance issue is with the Museum on Wheels (96.552). Cuttently it is uncertain whether North East Neighborhoods Development Corporation, which is administering the project, will have site control over the building that they intend to improve. The building, 1545 Maryland, was sold recently and the new owner had not yet entered info a Iease witfi the tenant, North East Neighborhoods Development Cotporation. Under the C�ltural STAR guidelines it is required that improvements ha�e a five year life. Without a five-year lease, future site control is uncertain and in turn the life of the improvements. Despite these exceptions the majority of the Culhu�al STAR recipients have or aze eacpected to be able to complete projects in compliance with the guidelines and contract description. F. Economic Impacts For many of the projects it is difficult to measure the economic impacts. Ten of the projects do not invotve a direct monetary exchange associated with the consumption of the unpruvement. An example is the lighting in Rice Park. The consumer of this amenity does not pay at the point of consumption. Other projects will involve a monetary transaction, but they have not been completed. An example of trris is the Minnesota Centennial Showboat Renovafion. However there are two projects which have measurable economic activity and aze completed. They ate the Saint Paul Chamber Orchestore and the Saint Paul Friends of the Library Used Book Store. These stores aze new, so they are still building a customer base. This may mean that sales are not at their peak. Currently the average monthty sales for the used book store aze $2,000. It should be rememberecl that although the dollar amount of sales may be relatively low for the book store that the volume of items sold is high because the books sell for an a�erage of $1.25 per copy. In the azea of job creation there have been 3 full-time and 7 part-time jobs that have been made possible in part as a result of the 1995 and 1996 Culhu�al STAR Program. Another indicator of economic impact, properiy tases, is not applicable since the pmjects aze administered by non-profits and aze thus not subject to property ta�ces. Overall, economic activity has increased in the azea lmown as the cultlu�al dis�ict, but that can not be linked to any one factor. Variables such as the type of cultural event, the frequency of events, safety, and accessibility partly detenuine the economic success ofthe azea orproject. Because ofthe lack ofnecessary variable data it is impossible to specifically ascertain the impact of the Cultural STAR. With this said it is still possible to determine that the Cultural STAR is accomplishing meaningful improvements in the cultural district that would not have othenvise been implemented. This was made clear through the interviews with the Cultural STAR project managers who said this program has been vital to complementing the new civic center facility. G. Matches The Culrival STAR Program has been successful in securing the required match from each of the participating projects. As seen in e�ibit 2.2, the entire documented match for CulYurat STAR 142 �. � � i � � � � � � � � � � � � Exhibit 2.2 � Exhibit 2.3 � � � �$ �, Matching and STAR Funding � for 1995 and 1896 Culturet STAR (46.4%) 143 Project Managers' View of the Cultural STAR for 1995 Cultural S7AR Recipients Project Managers' View of the Cultural STAR for 1996 Cultural STAR Recipients Exhibits 2.4 .: � � �� - � a� cycles 1995 and 1996 has been 53.6% of the total dollar expenditures necessary for the projects. This means that for every dollaz of Cultural STAR money being provided to projects, $1.15 in outside match is being raised. In fact this reading of documented match is highly conservative as the current reporting system does not consider the magnitude of the total match that will be provided in the case of the new Science Museum of Miwnesota or the Minnesota Museum of Art. These two projects could put the match over $90 million. Sweat equiTy did not play a significant role as match to these projects. Because of the highly organized and public nature of the improvements in the Cultural STAR, sweat equity match was not appropriate as it was in the Neighborhood STAR Prograui. H. Perception of the Cultural STAR Program The project managers of the Cultural STAR Program expressed an overwhelmingly positive view � about the Cultural STAR. As noted in exlubits 2.3, over three-quarters of the 1995 Cultural STAR project managers had a positive view of the program while two-thirds were positive in 1996. One additional manager was not fully satisfied with the Cultural STAR Program in 1996 � than in 1995, but due to the small number of participants it would be difficult to identify this as a trend: � � � � � � � � � � Cultural STAR project manager of the History Center Exterior Signage, Shana Crosson, said that, "The Minnesota Historical Society was thrilled to receive this grant. They would apply again." Another Cultural project manager from Minuesota Landmazks Cultural Corridor Streetscape Plan, Amy Walgrave, said that, "It was nice being part of a progrun with a short response time. The STAR staff has been great." She also said that, "It (the Cultural STAR) enabled them to do things that they would not otherwise be able to do." Beyond the project manager's positive attitude towards the Culh�ral STAR Program, they also shared an attitude that it is important for the City of Saint Paul to take a real and active role in sustaining the cultutal and artistic life of the community. The C�ltutai STAR project managers see the program as an important step for the City of Saint Paul to demonstrate its support for the culturai community, and that it must maintain and "grow" this commitment. I. Issues Raised by the Cultural Proiect Mana$ers There were no central issues or concerns that repeatedly came to light during the interoiews with the Cultural STAR fund recipients. This is not to say that there were no issues, but there were no pattems of concerns that emerged. The concerns were diverse and particulu to the workings of the individual Cultural STAR proj ects. One issue that was mentioned more than once was that PED charged Cultural fund recipients a fee for the deparlments's admnustration of the award . However this pracfice no longer e�sts and consequently is not a persisting issue. Another concem mentioned by two project managers was the extensive amount of paperwork that the Cultiu�al STAR required. The reason that this concem was cited stenuued from the Little Davis-Bacon reporting requirements. This regulation pertains to the use of all city funds. For the two project managers that expressed this concern, one of the projects had not yet started, so the project manager was expecting that it 145 � would be an issue. Other concems that were cited were 1)difficulty getting the City to issue a pemut for a project, 2) not allowing STAR funds for mazketing, and 3) not allowing reimbursements for administrative eapenses. Overall the concerns cited by each project manager were specific to their circumstances and did not highlight any major deficiency with the Cultural STAR Program. J. Overall Program Issues and Recommeadations The issues and recommendations presented aze those identified by the author and are based only on his interpretation of the information gathered through the interviews. 1. Short-Term Issues a How can the Cnitural STAR Program encourage use of the loan funds? 25% of the funds from the Cultural STAR are to be loaned out. The prograw has identified a need to fund projects that support the cultural district such as restaurants and pulang ramps. As the diversity of the STAR applicants and recipients increases, tlus affords the prograzu new opporhxnities to allocate loans. How could that be accomplished? b. How can the Cultural STAR be more snpportive of multi-cnitural projects? The progam has identified multi-cultural pmjects as being critically important to fostering the revitalization of Saint Paul. Many of the newly arrived immigrant groups to Saint Paui have a tendency to settle in close proximity to others of the same ethnic background. The geographic distributaion of the many cultures of Saint Paul may be a key ingredient to more effectively supporting multi-cultural projects. What can be done to create an environment which will nurture multi-cultural projects? 2. Longer-Term Issnes a. How can the Cultural STAR bolster the arts and culture thronghout Saint Paul? Cultural activity does not onIy happen downtown. The neighborhoods have their own cultural venues, events, and opportunities. How can the program effectively blend its support for the "higher" cultural acrivities of downtown with the more "populaz" cultural opportwriries offered in the neighborhoods? b. How can the Cultural STAR awaken interest in history, the arts, and cultare among Saint Paul's youth? They aze the future stewards of the community. This generation wiff be facing the same decision that the past few generations have-Do I stay in the inner city or do I exit? It is unportant that the Cultural STAR take a leading and yet supportive mle to instill pride in the children about who they aze and about the community in which they live. How can the Cultural STAR Pmgram best serve our futiu adult residents-the children? f�'. �. � � 3. �.i � � � � � IJ � ,� � � � � � Recommendations �� a. In order to use the targeted 25% of Cultural STAR funds as loans the program could require that supporting services like pazldng ramps and restaurants that receive STAR funding withiu the cultural district get a certain portion of the awazd in the form of a loan. This could help to get loan funds out by targeting recipients who would be the most capable of repaying the debt and are also in the area with the highest concentration of cultural opportunities. b. As stated in the 1996 guidelines in the list of "projects more likely to be funded" aze "proposals supporting the multi-cultural dimensions of the community". This presents a cross purpose to the program because the cultural funds are mostly directed toward down town whereas most of the ethnic communiries in Saint Paul aze located out of the cultural comdor. In a effort to support this proposal it might be beneficial to open an inereasing percentage of the money to use in the neighborhoods. With more money available to the neighborhoods, multi-cultural projects may have a better chance at getting Cultural STAR funding. a Many of the culhxral organizations in Saint Paul are hauing trouble with insufficient funding. The usual sources like the National Endowment for the Arts are often times lowering the amount they aze giving in grants, awazds, and donations. As a result the Minnesota State Legislature has amended the Cultural STAR Program to ailow it to fund operating expenses as well as capital expenses for cultural projects . Currently the challenge will be to detennine how the funds will be allocated in light of this expansion of allowable expenses. d. Cu2ttue comes in many farms and that is especialIy true in Saint Paul, and it does not only happen in the cultural corridor. For five years from the inception of the program the cultural corridor has been designated to receive a minimum of 75% of the STAR Program's cultural funding. This has been one of many effective strategies for revitalizing downtown Saint Paul. However after five years this allocarion will be revisited. At that point the City Council will consider if the geographically designated allocations will be continued or revised in some way. The Council should consider modifying the minimum aliocation for the cultural corridor so that cultural groups in the neighborhoods can compete for funding more successfully with the well established cultural organizarions in the comdor. e. The Cultural STAR Program can help muture a sense of cultural, historic, and overall civic pride among Saint Paul by funding cultural endeavors that promote an understanding and awazeness of the history and culture of Saint Paul. The 7ackson Street Roundhouse has developed a grade specific curriculum for children visiting the facility. This approach helps broaden and reinforce children's understanding of the unportance of Saint Paul as a transportarion hub and economic center. When awazding Culhxral STAR funds the board and 147 � City Council should ensure that this Saint Paul focus is demonstrably part of each of the projects that will get Culriu�al STAR funding. K Conclusion In summary, the C�Itural STAR Program has been effective in meeting the objectives as stated the prograui guidelines. The majority of the funds have been used for capital nnprovements to "front of stage services" wfiich impact visitors. The Cultural STAR funds are stimulating downtown vitality in combination with other private and public efForts. T'he cultural corridor projects have generally been successful linldng into Saint Paul neighborhoods. This is especially witnessed through the outreach that many of the cultural organizations have with the Saint Paul School District. Although it is difficult to verify absolutely, it seems that the Cultural STAR Progratn is making efforts to stimulate economic activity and create /retain jobs. It appears that with fixtute cycles it will be even more successful in creating economic vitality by funding projects which cater to the needs of the visitors, such as restaurants. The program is new, but it has great opportunities for meeting its goals in Saint Paul because the cultural wmmunity is dynamic and willing to meet the needs of Saint Paul residents. ,; � Y � � � � � � � � � � � � � � � ��-ca� 1995 & 1996 Cultural STAR 95.509 Skyway Lightutg Bnilding Owners & Managers Association Description: Grant Amount: $136,600 The objective of this project has been to add lights to all of the skyway bridges in downtown St. Paul. Decorative light fixtures will be located along the top of both sides of each skyway bridge, specifically at the intersecrion of the vertical supports and the top horizontal beam. These aze permanent lights to be lit every night. This project has not been implemented as of September 1997. William Buth, President of the Building Owners and Managers Association and project manager of the Skyway Lighting project, is negotiating with Saint Paul's Department of License, Inspections, and Environmental Protections on the design of the light fixtures. Mr. Buth said that he believes that agreement has been made on the design, but the cost will be more than originally eapected. In order to continue, the Association will haue to commit more money to the project. Mr. Buth believes that commitment will be made before the end of the yeaz. Mr. Buth did not comment on when he thought the project would be completed, but he did say the permitting process and the increased cost of the project have slowed down progress toward implementation. The objective of the project is to add life to downtown Saint Paul. It will do this by visually connecting the cultural institutions-and other building in Saint Paul with aesthetically attracrive exterior lighting on the skyways. 149 � � 95.510 Library Facade Lighting James J. Hill Reverence Library Grant Amount: $ 15,000 � Description; The objective of this project was to install light fixtures to illuminate the facade of the St. Paul Public Library and the James 7. Hill Reference Library buildings and to increase the general light level in the azea. This project has been implemented. Ten light fuctures have been installed on the front lawn of the Saint Paul Public Library and the James J. Hill Reference Library. Because of the lighting project the library can be seen more easily at night. The Italian Renaissance building assumes a more prominent posirion downtown. According to Brian Braden, the project manager, the accent lighting makes the buildings more prominent in the evening and has ixnproved the general feeling of safety in the azea The Saint Paul Police Department could not verify that Rice Pazk had experienced a change in the number of crimes coxnxnitted in its boundaries since the lighting pmject. This is the case because they keep records on lazger ttacts than the park occupies. The served popularion consists of visitors and residents that go to the downtown area azound the u�aiu library. It benefits the patrons and visitors of the Minnesota Club, the Saint Pau1 Civic Center, the Ordway, the Landmark CenYer, and the Saint Paul Hotel. Contract Compliance: The popularity and cultural significance of this area ensutes that the project services a wider audience than Saint Paul. Visitors come from all sections of Minnesota as well as the rest of the five state region. The STAR contract was signed on Mazch 1, 1996. The installation of lights began in May of 1996 and ended June of 1996. The STAR funds were used for the purchase and installation of the lights. � 150 a�-�a� 95.511 Rice Park Improvements James J. Hill Reference Library Description: Grant Amount: $37,500 The objective of the project was to increase the lighting levels in Rice Pazk by installing permanent light fixlures in the trees. Receptacles were installed high in the branches of the trees to accommodate the Capital City Lights program. The eacisting temporary cabling system was removed and permanent conduit was installed in the ground and up the tree tnmks. In order to complete the project, the electrical infrastructure in the park was also updated. The population served includes individuals who attend events in Rice Pazk, pass through Rice Pazk while patrouiznig or attending an event at a local orgaz�ization, ar visitors and residents on their way to the downtown district. Contract Compliance: The popularity and cultural significance of this area ensures that the project services a wider audience than Saint Paul. Visitors come from a11 seclions of Minnesota as well as the rest of the five state region. The STAR contract was entered into May 1, 1996. The improvements began in July of 1996 and ended September of 1996. The STAR funds were used in Rice Pazk to upgrade the electricity, wire the trees, and install light fixtures. Volunteerlaborwas used on a portion of this project to place 50 extension cords in the trees of the park. 151 95.516 Minnesota Clnb Hattdicapped Entrance The Minnesota Clnb Description: GrantAmount: $10,000 Loan Amonnt: $39,000 The obj ective of this project was to modify the existing Waskungton Street enirance by removing the stairs and installing a handicapped lift in the foyer. This project has been implemented. A handicapped accessible entrance has been installed at the southem end of the Minnesota Club located at 317 Washington Street. In order to install the entrance the landing was lowered to the levei of the outside sidewalk. Previously , a wide staircase ran up to the fust landing at this entrance. As a result of this proj ect this staircase was divided and an elevator lift was installed. When entering the building from the handicapped entrance there aze two automaTic doors at each end of the lift, upper and lower. The eaterior door is equipped with a camera in order to confirni the identity of the visitor. Entry through the outside door is activated by somebody at the front desk. There are complementary handicapped features inside of the club, The upper levels are served by an elevator. The ladies' bathroom is designed for handicapped access and the men's is currently being retrofitted Because ofthis project the Minnesota Club is able to serve the community more fiilly. The enhanced access to the building works as an asset to the club. On a broader scale this project benefits the lazger community because it offers visitors and patrons to the cultural corridor a gathering and meeting facility that is easily accessible despite the physical conditions of the individuals Increased use of the facility because of the improved handicapped access has not been moaitored. Additionally there is no record of the number of times the lift is used because there is no automatic counting mechanism on the lift. Bill Redding, the project manager, indicated that the lift is used. Its use is lunited to designated handicapped individuats. The lifi is never used for freight. The lack of monitoring does not meet the requirements outlined in the evaluation section of the application. Contract Compliance: The events held at the club aze diverse as aze the visitors. They are not from any one particulaz place. Most of the patrons are from Minnesota The contract was entered into May 1,1996. Construction began Match 1996 and was completed in October 1996. According to Mr. Redding the pmject took longer than the described six months because the wheel chair lift took longer to order than e�cpected. The overall maximum deadline for the project was May l, 1998. Everything was completed well before that point. The STAR funds were exclusively and totally used on the creation of the handicapped access for the building. The total cost of the project was in excess of $100,000. 152 1� , � Mr. Redding said the STAR money was critical in getting the project accomplished promptly. He also said that getting the funds was difficult. The club had to show that its facilities were open to the pubiic. The City Council wanted this assurance because public money was going to fund the project. The project was not advertised on the building as being part of the STAR Program. However the members did know because it was menfioned in the club newsletter. Mr. Redding quipped that the process set forth in guidelines is straight forward. You just have to make sure you fit before you apply. 153 � 95.518 Minnesota Museum of American Art Expansion and Renovation Minnesota Museum of American Art Description: � GrantAmount: $100,000 � The objective of this project is to renovate approximately 15,000 squaze feet on the 2nd and Sth floors of Landmazk Center for the Museum's education deparhnent, new administrarive offices and gallery expansion. Impmvements will also include new lighting, HVAC, painting, carpeting, walls, and security system. A new Museum visitor informarion/education center will be built. Although implementation of the project was revised from the original anticipated schedule, Doug Nathan, the Museum's development director, said that the project will include all improvements described in the contract. The second floor will be renovated to house more gallery space, and the fifth floor will be transformed to accommodate the museum's administrative offices and education deparlment. As a result of this project the galleries will eacpand by 30% and a new information and visitor center will be added. Nathan indicated that the amount of space that will be renovated for the administrative offices on the fifth floor is not accurate in the contract. He said it is 1,500 square feet and not 15,000 square feet. After selling the Jemne Building the museum had to place their permanent collection in storage. With the additional space the museum will not have to completely close its operation in order to remove and replace an eachibit. This in turn will directly benefit the patrons. The space will be more open and user friendly. This cultivai site serves azound 75,000 people per year. Of this number 8,000 are chiIdren from the Saint Paul School District. The School Board and the Minnesota Museum of American Art have worked together to create a cultural curriculum that the museum can complement with its collection. According to Darcy Berus, associate director of development for the museum, the Minnesota Museum of American Art is the only art museum in Saint Paul. Because of this status the museum has a strong position serving the City of Saint Paul. Contract Compliance: The STAR contract was entered into May 1996. It is eacpected that implementation of the project will begin October 1997 and end in February 1998. Under these expectations the project will be completed before the contract eapires but after the anricipated date of complerion which was December 1997. To date, none ofthe STAR funds have been disbursed. Nathan explained that the project has been slowed down because of the size of the renovation project. He said total renovafion will cost around $600,000. One significant barrier to the implementation of the pmject has been that ffie original cost estimates were low. This pmblem has been compounded by the fact that additional needs that were 154 � � � � � �J � � � � � � � � ll � � �� a�- �a� not identified initially aze now being considered. Nathan said they aze hying to do it (the project) right, not fast. After reevaluating the increasing costs and limited budget, the museum considered cutting the heating, ventilation, and air conditioning (HVAC) improvements, but later realized this was not a reasonable modification because it would curtail the musewns capacity to attract certain art e�ibits. Many arts organizations which manage exhibits demand that their collecrions be displayed under certain air quality conditions. The building gets excessively dry during the winter. This would violate the conditions set forth by some e�chibit curators. The museum's boazd recognized this as being an unacceptable solurion, so they have determined that the project will be implemented as originally described. Comments: Nathan said the museum was satisfied with the STAR. It was the lead gift from the City. He viewed it as endorsement of the museum's work. Nathan expressed a recogsition of the helpfiilness of the STAR coordinators. He indicated that the museum appreciated the fact that the City bought the Jemne Building from them with the help of STAR funds. He would apply for STAR fixnds again. Nathan described the environment for fund raising as "hazd". It is important far the City to move in and help. City support has always been important, but especially because the demand for cultural services and experiences has been increasing. Nathan sees a role for the STAR program in lending vision for the future of the Cultural Corridor. Currently there is no master plan. He believes that the City is paying lip service to the Arts. IYs a low priority. The City could help thmugh specific things like signage and more general services like assisting the arts organizations in the creation of a long term plan. Nathan thought that a posirive modification to the STAR would be the allowance for eacpenditures for mazketing to be reimbursable. He did not generally think that any STAR funds shouid go toward the day to day administration of projects. 155 � � 95.523 Ordway Patron Service Improvement Ordway Mnsic Theatre GrantAmount: $15,250 � Description: The objective of this project was to install video monitors and an ADA handicapped accessible door to improve service to the patrons. TYris project has been implemented. Ten video monitors have been installed in the lobby and stage area of the Ordway Theater at 345 Washington Sireet. Additionally a handicapped accessible door was added to the main entrance. Because of these service improvements the Ordway is able to provide a more professional and attractive environment for its clients and performers. Mazsha Milgrom, the pmject manager, said it benefits the bottom line. The Otdway is now a more desirable and responsive performiug center than it had been. The video monitors which are commo�lace equipment in halls like this are used as cuing and leatning tools for the perfomiing artist. Previously tlus necessary equipment had to be rented or �-ansported with the performers, Tlus is no longer necessary. Another benefit offered by the monitors is that the performances can be viewed live and remotely from the lobby. With this addition late-comers can watch the show without disturbing the other patrons. Finally when a show is not being transmitted over the monitor, it can be used to advertise future presentations. The haudicapped accessible doorway allows the titeater to more safely and efficiently service patrons who have special physical limitations. It is a key component and complement to the other bandicapped accessible amenities in the theater. The patron service improvements potentially have the ability to enhance every patrons visit to the Ordway Theater. In particulaz it benefits late-comers, handicapped individuals, and the performers, but the opportunity to improve these parties eaperiences in the theater in tum enhances the eacgerience of all the patrons. The attendance of the theater is 30Q,00� visits annually. Contract Compliance: As a result of the prestigious reputation of the theater and its schedule, guests originate from not only the metropolitan azea of Saint Paul and Minneapolis but from all parts of the Upper Midwest. Ms. Milgrom stated that 2/3 of the patrons are from the Twin Cites region and that students in the Saint Paul School System make up a significant core of their patronage. The contract was signed in May 1996. The project started in May of 1996 and ended by October 1996. It was completed withiu the desigiated period, and the STAR did not unpact the rate of its completion. The STAR funds were used to purchase and install the monitors and the handicapped accessible door. The outcome of the project agrees with the description in the coatract. All of the labor was completed through the maintenance staff of the Ordway or contracted labor. u 156 � 1 f � �g - i ag Comments: Ms. Milgrom was surprised that a fee was charged against the cuitural grant prior to the disbursement of the funds. She was not aware of this, and this created some short-term gaps in the financing of this project. She also thought that the requirements of the cultural STAR might discourage smaller atts organizations however she was not personally familiaz with any such cases. Ms. Milgrom believes that there could be less paperwork, and some of the STAR funds should be usable for administrative purposes. She thought 10-15% for administration would be appropriate. � Editor's Note: The City's service fee is no longer taken out of each organizarion's loan or grant awazd. � � � � � Handicapped accessible door at the Ordway � � � � �� 157 � � 95.528 Arts Resource Center Expansion Resources and Counseling for the Arts Grant Amount: $25,000 � Description: The objective of this project was to create an art resource center in Lowertown. This project has been implemented. Space at the Northem Warehouse, 308 Prince Street, Suite 270, in Lowertown was modified to accommodate administrative, meeting, counseling, and library services for the non-profit by the name of Resources and Counseling for the Arts (RCA). As a result of this project the square footage available to RCA has increased four-fold from their previous site in the Landmazk Center. This has enabled RCA to expand its services and more conveniently assist the arts community of Lowertown. The total cost of the renovarion project was $150,000 of which $25,000 came from the Cultural STAR program. Because of this project RCA has been able to increase the number of programs that it offers. It has augmented its telecommunication linkages in the new location with more telephone lines and computers with intemet access. Increased and enhanced features of the new site ha�e enabled RCA to serve 25% more artists in 1997 than it had served at this time last yeaz. This project benefits the neighborhood as RCA acts as a complement to other support services to the arts community in Lowertown. In fact since RCA relocated to Lowertown the Minnesota State Arts Board and the Jerome Foundations have opened offices in the immediate area. Clustering of Arts orgazdzations have benefited the community according to Joan Well, the executive director of RCA. Contract Compliance: RCA served 3,000 individuals from 1995 to 1996, and this increased to 4,000 from 1996 to 1997. 80% of the artists served were from the seven coimty metropolitan azea 7% are from greater Minnesota and most of the remainder are from Wisconsin and the Dakotas. RCA also provided resources and counseling to 260 arts organizations from 1996 to 1997. Ms. Wells said that RCA offers specialized services to its clients. Those services include information and technical advisetnent and general information on business management. They do not directly manage or represent clients, but they do connect artists and organizations to available resoutces. RCA additionally facilitated arts resource seminars that reached 3000 participants and separately directed 1500 artists towazd job opportuniries. The STAR contract was signed Febmary 23, 1996. The improvements for the project began in January of 1996 and were completed by April of 1996. Ms. Wells did not identify any barriers to the completion of the project, but she said the removal of lead paint altered the schedule to some degree. The STAR did not unpact the rate of completion after the improvements were started. The STAR funds were used Yo coavert a section of the wazehonse to usable office space. In particular it was used for electric, plumbing, lighting, wall, and general prepazation of the space. Comments: Ms. Wells indicated that the relationship between the Cultural STAR program and RCA ran smoothly. She stated that RCA had gotten funding from PED on prior occasions and that perhaps this positive history of interaction between the two parties made it easier. � 158 � � � 95.530 Saint Paui Chamber Orchestore The Saint Paul Chamber Orchesira Society,Inc. q� - �a� Grant Amount: $71,150 � Description: � � � � � � The objective ofthis project was to establish a street-level retail store in the Hamm Building that acts as a outlet for Saint Paul Chamber Orchestra Society Inc.'s merchandise and concert tickets This pzoject has almost been completed. A street level storefront has been established for the mazketing of Saint Paul Chamber Orchestra tickets and merchandise. It is located at 402 St. Peter Street, in the Hauuu Building. The unprovement of the space involved facade restoration, added walls, a new ceiling, lighting, and electrical improvements . The store has a ten yeaz lease on the space. Because of this project good press has been generated for the Saint Paul Chamber Orchestra. It has also given the organization an oppornurity to mazket its product to the public. The public is being served more fixlly with the addifion of the Orchestore because it is conveniently located in the center of Saint Paul, and its hours not only include weekdays but Saturdays also. According to Terry Schlender, the project manager, the store wili employee one full-time employee and six part-rime employees. As of September 1997 the store employed one full-time and two part-time employees, but with the advent of the concert season this is expected to increase. The Orchestore has had a slow business start because it opened at the end of the 1996-1997 concert � season and because the Hauun Building has not been easily accessible because of exterior renovations to the structure. As a result it is difficult to deternune who and how many this store will service. Mr. Schlender said most of the customers are first time subscribers, tourists, or downtown � workers. He had no idea of how many were served. He said it varies widely, but that the daily customer count is usually between 10 and 50. � � � � � � Because the Orchestore sells unique merchandise and because Saint Paui Chamber Orchestra merchandise is no longer sold at the concerts, the store's geographic area of service is lazge. The store not only serves downtown Saint Paul but the entire metropolitan azea according to Schlender. Contract Compliance: The STAR contract was signed in May 1996. The restoration of the 402 St. Peter site started in November 1996. The store opened April 1997. The ticketing system was in the store and operational in August of 1997. The exterior of this space should be fuushed before the end of the 1997. The STAR process of disbursing funds did not slow down the progress of the project. The STAR funds were matched by the improvements that the FIamm Building owners made to the Orchestore space. The improvements were in excess of $100,000. The STAR funds paid for shelving, computers, a central tickering system, and Orchestore linkages to the system. 159 � � The work on the site has been completed by contracted labor. Sweat equity was not performed for � the implementation of the project. � 160 � , � � � � � � �� 1 ! 1 1 � � � � � � 95.534 Cambodian Community Center Mnral Project United Cambodian Association of Minnesota Description: ��-ia� Grant Amonnt: $13,200 Loan Amonnt: $4,400 The objectives of this project have been to create several painted and one sculpted art mural for the exterior ofthe building, and also add flagpoles to the Cambodian Community Center, located at 529 Jackson. This project has been partially implemented. The first portion of the project has been completed. , It was the installation of flags along the front facade of the Cambodian Community Center at 529 7ackson. There aze eleven flags in totai, and they include the flags of the United States, Cambodia, the United Nations, and Mimiesota, as well as four signal flags and others honoring Southeast Asian � culture. The second phase of the project is also largely completed. A lighted mural celebraring Cambodian culture has been placed on the exterior of the building's first floor southern exposure. It is being crafted by a community artist. In addition, tlu painted murals have been completed and � are displayed on the east and south sides of the building. These murals were also completed by a community artist who's work is being funded through a grant from the Saint Paul Companies. Through this project the northeast comer of downtown will ha�e a new presence which reminds all residents, center members, and passers-by about the distinctive architecture and culture of Cambodia. It will reinforce and exemplify the Downtown Development CounciPs Plan to bring more cultural diversity to the downtown section of Saint Paul. Unlike its companion project in the Neighborhood STAR Program, this Cultural STAR Project will serve a broader audience. This building is located at the northeast gateway to downtown. It is visible from East Seventh Street as well as a downtown interchange from Interstate 94. Contract Compliance: The improvements will be on the building at 529 Jackson as set forth in the STAR contract. Geographically, this part of the project will serve a wide array of people from different places inside and outside of Saint Paul. The STAR contract was entered into April 1, 1996. The installation of the flags began in March of 1997 and ended in June of 1997. The remainder of the project was completed in November 1997, with some details to be finished by UCAM in the spring of 1998. The STAR funds have been used to buy the flags and install flagpoles. It has also been used to install the murals for the exterior of the building. 161 � 96.542 Science Museum of Minnesota Espansion Grant Amount: $300,000 � The City of Saint Paul Descripfion: The objective of this proj ect has been to create a 310,000 square foot Science Museum of Muuiesota complex with a 700 car pazlang garage. This project is being implemented currently. It will create a 31Q000 square foot riverfront e�ibit site for the Science Museum of Minnesota. The properry being developed is on Kellogg between Eagle Street and the District Heating Building. It does not have an official address as of yet. The new $95 million ea�pansion project is e�ected to bring 1.5 million people to the cultural district annually. It will serve a broad base of people from Minnesota and throughout the Upper Midwest. Because the funds for this project will be used by the City to pay for portions of the project, no contract was executed. Gmund brealdng for the pmject began in late spring 1997. According to Bob Geurs, ffie City's STAR account officer, the project is expected to be completed by the end of 1999. STAR funds for ttris project ha�e been disbursed. The $300,000 that was awarded went to help pay off an obligation with Saint Paul Foundation. Those funds were used to acquire a portion of the land on which the museum will be situated. � 162 � � 96.545 Friends of the Library's Used Book Store Friends of the Saint Paul Pnblic Library i� • .� Grant Amount: $25,000 � Description: � The objective of this project was to create a used book store that will sell old and excess copies of books from the Saint Paui Public Library System. � This project has been implemented. A space on the skyway level of the north side of the Norwest Bank Building has been adapted in order to house a used book store. It was through a cooperative arrangement developed by the City Purchasing Agent, Linda Camp, that this book store came to � light. The City had explored a number of different options to sell surplus supplies. After obseiviug the success that 20 other United States cities had eaperienced with surplus sales, Saint Paul decided � to explore this option. At this point a marriage between numerous if not all City departments was forged. The Saint Paul Library and the Friends of the Library took a proactive role to directly participate in the future outlet. It identified this retail concept as a more efficient and profitable � method to market its used books. The final development of this plan not only involved retail services but the addition of a library kiosk where patrons check out books. With this outlet the Friend's can more efficiently raise money for the library. This arrangement eliminates the need for librarians to tend to the sale of books because all books aze marketed at the designated ouUet. Moreover the sales aze more profitable because labor costs aze not as high as they would be if the sales were conducted in the library. Another benefit of this project is that it allows for the specialization of the units function. At this site the staff is dedicated to the sale of books and other surplus items which makes service more efficient than it would be if the sales were conducted at the library. The public has exceptional access to the used book store because of its popular location near the Norwest food court, and also its central location in the skyway system. Finally, the book store serves the lazger community by offering the public a wide variety of books at a reasonable prices. The used book store has one fall-time and one part-time emptoyee. The majority of the used book store patrons either work downtown or live downtown. The store serves between 120 and 140 customers per day. Contract Compliance: Craig Thompson, the store manager, indicated that the store serves a five block radius. Its service area would cover the majority of downtown Saint Paul. This service area overlays the Cultural Corridor. The contract was entered into July 1996. The improvement to the skyway space was begun in July 1996 and was completed in Mazch 1997. It was completed within the anticipated progress schedule. The STAR funds were used to install walls, signage, elechical rewiring, and lighting. Ali the funds haue been disbursed. 163 `J Comments: Peter Peazson, the project manager, said the grant writing for the STAR request was � simple. However the request for reimbursements was difficult. He suggested that money be advanced to the pmject rather than always hauing to request reimbursements. He thought that may ' organizations would not haue the money to put up front and wait for a reimbursement. He did not cite any organizations that he thought might have problems. Overall Mr. Pearson said it was not a , bad process. He would apply again with hesitation, but he did say there were easier sources available. He indicated that administrarive resources were a problem, and he thought it would be appropriate to charge up to 10% of project costs to that category. Mr. Pearson appreciated that the � partnership that was forged among the Saint Paul Library, the City of Saint Paul and the Friends of the Librazy was supported by the STAR pmgram. Finally Mr. Pearson said the interviewing pmcess was intimidating, and it might be easier if fewer of the boazd members were in attendance for each � of the individual interviews. He was also disappointed that delays in the interview process caused him to spend much of that day waiting to be interviewed. Brad, a store associate, said he likes working at the Saint Paul store. He said there aze good bargains. � "In fact I have bought so many books (from the store) I no longer have room for any more." LJ Friends of the Library's Used Book Store 164 �-�a� 96.546 Hillcrest Recreation Center Theater/Communication Room Highland Area Recreation Project Description: Grant Amount: $50,000 The objective of this proj ect is the creation of a state of the art theater for community use. The hope of the applicant is to instali a lighting and control system, a sound system and a complete projection system. With these items in place Highlands expects to be able to attract professional organizations to use the facility thus exposing local residents to professional performances. This project has not been implemented. As of eazly September 1997 the project was sfill getting bids. Gayle Summers, the project manager, indicated that she e�cpects the Highland Community Center Auditorium upgrade to be accomplished as set forth in the contract. The nnprovement will include the installarion of additional lighting, a control system, a sound system, and a complete projection system. The only possible change from the coniract's project descripfion will be reflected in the quality of the system. The contract indicated that the auditorium would be transformed into a state-of-the-art theater. In light of rising costs this might not be possible. Contract Compliance: Implementation of the improvements aze expected to begin in eazly October 1997 and end by the close of late 1997. Although the project is expected to be completed before the contract will expire, it will not be finished according to the projected progress schedule of spring 1997. Ms. Summers said that the primary delay to accomplishing this project has been getting a reasonable bid on the work. Although the contractor for this project has not been identified with absolute certainty, she is confident that this project can be implemented during this autumn. Ms. Smnmers is optimistic about the outlook because she has begun to receive bids that fall within the project budget. Comments: The Cultural STAR has worked well for the Highland Community Center. Ms. Summers appreciated the fact that she was able to present the theater project directly to the board. She said the process was not too sophisticated, and she thought that was good for participants. Ms. Sununers said that although this project was not in the Cultural Corridor it was rated highly because the center's improvement will serve the cultural needs of the community. 165 96.549 History Center Egterior Signage Grant Amonnt: $27,900 Minnesota Historical Society Description: The objective of this project will be to provide funding for the design and installation of exterior identificarion signage for the Minnesota History Center. A lazge identification monolith will be installed at the comer of Kellogg and John Ireland Boulevazd. Flagpoles and other hazdware displaying identifying banners will also be installed. This project has not been implemented. Shana Crosson, contact at the History Center for this project, said that as of late suwmer 1997 bids were being taken on the signage project. She indicated that the large idenrification monolith described in the contract will be installed on the corner of Kellogg and 7ohn Ireland Boulevazds. However the flagpoles also mentioned in the contract haue had to be redesigned because of weather conditions. The objective of this signage project is to increase the Minnesota History Center's presence in the Capitol Complex area. This in turn is eapected to increase the attendance. As a result of ttris the Minnesota Historical Society will be able to more fully accomplish its mission of educating the public about Minnesota and the region's past. The expected benefit accruing to the public because of this project will be a broader awazeness of this cultural and educational resource in Saint Paul. During the 1995-1996 school year the History Center served 75,000 school children. A large portion of whom are from Saint Paul. Hundreds of thousands more including families, visitors, and tourists from all age groups were served during the same period. It is expected that more will visit once the structure is identified as a museum. Contract Compliance: The geographic service azea for the museum is broad. The best served azea is Saint Paul and its environs however during the tourist season pa�ons visit from all points in the country. The STAR contract for this project was sign in November of 1996. Construction and completion of the pmject are expected before the end of autumn 1997. Crosson said that the STAR program did not delay the project. She said delays are attributable to staff turn over and reassignment of involved individuals' duties. Comments: Ms. Crosson said the Minnesota Historical Society was thrilled to receive this grant. However she did indicate that the pmcess and the procedute of the STAR program were uncleaz. Nevertheless they would apply for STAR funds again. 166 q�� a� 96.550 Cultural Corridor Streetscape Plan Minnesota Landmarks Description: Grant Amount: $35,000 The objectives of this project aze to install nine new historic lampposts, along with sixteen new trees on the sidewalk azeas of the building. The project is part of a larger effort by the businesses in the Ctiiltural District to enhance the areas neaz Mazket, St. Peter, Cedaz Streets and Kellogg Boulevazd. The proposed improvements would benefit the pedestrian environment by increasing safety, encouraging pedestrian traffic, visually enhancing the Culhiral District, and strengthening the historic chazacter of the downtown azea. This project has not been fully implemented. The decorative and historic lampposts azound the Landmazk Center will be augmented by nine new posts. The original number of trees in the plan has been decreased from 16 to 10 in order to complement the center and not clutter it. i Amy Walgrave, the project manager, indicated that the plan was partially implemented in October � 1997. They had expected that the project would be completed by summer, but the Public Works � DepartmenYs busy schedule prevented eazlier implementation. The project is expected to be fully completed by March 1998. � The STAR funds are being used for the trees and lights. Because of the prior lighting proj ect at the Landmark Center, it is unnecessary to add electrical capacity to the surrounding streets. All of the labor will be provided through the contractor for this project. No sweat equity will be used for the match or the actual impiementation of the project. Camments: The STAR process went smoothly. It was nice to be part of a program with a short response time. Ms. Walgrave also said the STAR staffhad been great. She said there was a fee that was charged against their STAR grant of which they were not awaze. It created some difficulty because it was not considered in the plans. She indicated that she is aware that it is no longer charged Ms. Walgraue said she would apply again. It enables them to do things that they would not otherwise be able to do. 167 96.551 Jackson Street Roundhouse Museum Development Grant Amount: $ 12,000 Minnesota Transportation Museum Description: The objective of this project is to bring the former mundhouse on Jackson Street up to building code compliance in order that it can be opened to the public as a Transportation Museum. The museum is expected to complement the Science Museum of Minnesota and the Miunesota Children's Museuxn. Contract Compliance: This project has not been implemented. Originally this application for STAR funds was geared towazd design and engineering features of the museum and its utiliries. Because this did not agree with the program limitations, the description was changed to involve the installation of the utility services. This change slowed the process down. Currenfly phase I which will be funded with STAR money will go towazd the installation of utility services. It is expected that implementation of the project will begin in late 1997 and continue until Spring of 1998. ISTEA (Intermodal Surface Transportation Efficiency Act) and MNDOT have also slowed the process time by long approval processes. Comments: Ms. Sims, the project manager, is grateful for the STAR program. She said that the STAR works well with ISTEA. It helps forge nice working relationship. fC.'f:3 I�, • ., 96.552 Museum on Wheels/ Storefront Gallery North East Neighborhoods Development Corporation Description: Grant Amount: $10,000 The objective of this project has been to create leasehold impmvements to a storefront on Maryland in Phalen Village , which will allow Northeast Neighborhoods Development Corporation (NENDC) to bring culturai e�ibits to that community. The project includes the purchase of portable display equipment, which will allow Northeast Neighborhoods Development Coxporation (NENDC) to bring cultural e�ibits to various locafions in NENDC's service area (banks, businesses, libraries, community centers), and leasehold improvements to the Phalen Village Storefront, which will allow the property to function more adequately as an art gallery. Contract Compliance: This project has been partially implemented. The portion of the project that has occurred involves the purchase of portable display panels. The other major part of tYris project, improvements to the space at 1545 Maryland Avenue East, has not taken place because Karen Swenson, the project manager, is intent to renegotiate the original STAR contract before further progress is reached. During an interview in September 1997 she indicated that a contract condirion requiring a five yeaz lease to ensure that the capital improvements have at least a five year life applies to a loan and requires repayment if not met. Swenson said she requested a grant for this project. At the time of signing the contract Swenson declared that she reached a verbal agreement with the STAR coordinators that the contract would be revisited at a later fime at which point the contract would stipulate ttiat the STAR funds were a grant. The project files and the contract indicate that the funds awarded for the Museum on Wheels project are a grant. Ms. Swenson stated that she has questions conceming whether the STAR program will honor her � future requests for reimbursement on this project. The STAR program requires verification of the length of the lease for the properiy at which the project is to be implexnented. Originally the � Northeast Neighborhoods Development Corpora6on (NENDC) had a ten yeaz lease on the storefront at 1545 Maryland Avenue East. Since the time the original lease was executed, the owner of the storefront sold the property. There was no stipulation in the lease that it would be honored by � successive owners during the lease period. The new party took ownership of the property at the end of August 1997. As of September 1997 Swenson has attempted to draft a lease with the new owner which will meet the site controi requirement of the C�ltlu�al STAR Program. Until a five year lease � between NENDC and the new owner can be signed it would not be prudent to make improvements to a space that may have to be vacated. , , � Up to this point the portable display panels haue been used not only at NENDC's office space on Maryland but also at the Landmark Center and the Saint Paul Civic Center. At these locations the panels have displayed pians for the new community center in northeast Saint Paul. 169 � Because of the uncertainty surrounding any possible lease with the new owners, Ms Swenson was � unable to address the question about how long it will be befare the project is fully implemented. ' � , ' � � � ' , C� � , � � ' LJ 170 � Q� - �aS 96.554 Minnesota Centennial Showboat Renovarion Grant Amonnt: $22,900 University of Minnesota College of Liberal Arts Description: The obj ective of this project will be to renovate the Minnesota Centenniai Showboat to meet health, safety, and access code requirements, and move it to a permanent location in the Mississippi River at Harriet Island. It will be the summer home of the University Theatre productions, and used by other organizations for a variety of purposes. This project has not been unplemented. The planned renovarion of the showboat is still intended to be executed as originally proposed. According to Tom Trow, the project manager, the boat which is a smiuner venue for University Theater productions, will be completely overhauled. Being able to use the Centennial Showboat is a boon to the University of Minnesota Drama Department because it allows them to perform long-n,nning productions. Trow said that productions that run for a longer period offer better training circumstances to students interested in performing arts. He said the students work in every aspect of theater when the troupe is using the showboat. This traiuing opportunity is not only good for the drama department but also for the community. The showboat allows the community to experience shows in a unique forum. The broader community is also served because young artists aze given an opportunity on the showboat to shazpen their sldlls as Thespians. From there many artist go on to perform in local productions. The showboat wili be docked at Harriet Island on the river&ont of Saint Paul. In particulaz it will serve tourists, theater enthusiasts, and the dratna community. Over past yeazs the boat has been boarded by 10,000 to 15,000 passengers annually. Attendance is expected to increase, the project manager did not laiow to what extent. The boat has and will be auailable for rental to other groups. Contract Compliance: The contract was signed on December 1, 1996. As of early September 1997 bids aze being quoted for the renovation of the Minnesota Centennial. Trow expected that unprovements will be started by November 1997 and be completed by the summer of 1998. Under this progress schedule the improvements will not be accomplished within the anticipated time frame, but it will be within the contracted time frame. Trow said the improvements have been delayed because they haue had irouble getting bids on the renovation, and he said when they do the cost is prohibirive. Moreover the project costs aze going up. Tmw believes that these circumstances aze attributable to the robust economy. He tlunks that as the construction season ends it will be easier getting a contractor who can work within their budget. Most improvements will be done by a contractor. Volunteers will paint and decorate the showboat. Comments: Trow said the amount of materials sent from the Cultural STAR Program to manage lus STAR pmject have been daunting. Maintaining the proper paperwork will be labor intensive he expects. Trow said the bureaucracy needs to be stream-lined. He also said the application fee is 171 inappropriate. The city should fully fund the operation of the STAR Ftogram. Mr. Trow said that his minimal interaction with the staff oFthe Cultural STAR Pmgram has been helpful. 172 , � 96.559 Jemne Building Project Saint Panl HRA ' � � � ' � , ' ' ' ' lJ LJ lJ ' C� a�-ca� Loan Amonnt: $382,800 This proj ect involved the acquisition of the 7emne Building on Saint Peter Street from the Mivnesota Museum of American Art. Inirially the purpose of the purchase was to improve the culhual corridor. It would do this by preserving a downtown art deco building, and potentially directing its use towazd one in the Arts. There were discussions that the building may be purchased by the organization wlxich represents the Leroy Neiman Gailery effort in Saint Paul. The group was given a deadline within which they could purchase ffie building. Tlus date has elapsed. As of early October 1997 the HRA is in the process of selling the Jemne Building. The building's purchase price has been set at $527,828. PED project services staff sent out offering packages to 50 potential developers. Interested purchasers can tour the Jemne at two open houses; one on October 2 from 1-3 pm and one on October 15 from 1-3 pm. Deadline for submitting proposals is 4:30 pm on November 25, 1997. 173 ' Credits Anthor: Fran Burns, Graduate Student Intem Humphrey Institute of Public Affa;rc University of Miuuesota Prepared for and printed by: Department of Planning and Economic Development City of Saint Paul 1400 City Hall Annex 25 West Fourth Street Saint Paul, MN 55102 For additional copies of this report, please call (612) 266-STAR (7827). The City of Saint Paul does not discrinunate on the basis of disability, race, sex, sexual or affectional orientation, age, color, creed, national origin or ancestry, marital status, religion, veteran status, or status with regazd to public assistance in adxnission to, or treatment or employment in, its programs or activities. 174 �, 9� _ 3 j L} � q� Council File #�a� d ( � ORIGINAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines : RESOLVED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Councii of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it INSERT HERE: FURTHER RESOLVED, that the Mayor and City Council hereby formally express their gratitude to the members of the Neighborhood STAR Board for their efforts and commitment to the STAR program and the City of Saint Paul. FURTHER RESOLVED, that the Council of the City of Saint Paul also incorporates and 2C10ptS 3S D2Tt Oi tt1E PT'oeT'am C�iiirlt?linac_ tha writtan nrnnnenlc nffa.-o.7 h.r I'.,,,,,.,�1...� Harr and Planning & Economic Development: � Adopted by Council: Date [�I�__� ,� �� Q Adoption Certified by Council Secretary: 3y �p Y Green Sheet # �� RESOLUTtON CtTY OF SAINT PAUL, MINNESOTA B ��°_`_'�_?�]�'��- `' Jr G �_ ff._i i! Form ppr ved i Attorney: By: 9�-1�.8` �n� cFi JJ1�.J V �A,�EM�� DATEI ITIAT D GREEN SHEE �� INRIAVDATE INRIAVDATE CONTACTPERSON&PHONE mDEPARTMENTDIRECTOR CMCOUNCIL µ�'� �'3 RSSIGN f�CRVATipRNEY CITYCLERK NUMBEN FOfl ��d� MUST BE ON COUNCIL AGE DA BY ( ATE) pOUTING O BUDGET DIRECTO FIN. & MGT. SERVICES Diq. a �$ q$ OROER MAYOR (OR ASSISTANT7 �� TOTAL # OF SIGNATURE PAGES _.�_ (CLIP ALL LOCATIONS FOR SIGNATURE) ACTIONRE�UESTED: �PPR��V OF 1�9g NFa�+F�� ` ' �' ` �Rc��µ C�u.co�U�� pECOMMENDA710NS: Approve (A) or Reject (R) PEflSONAL SERVICE CONTRACTS MUS7 ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE CAMMISSION �� Has this person/firm ever worked under a contrac[ for this depattment? _ CIB COMMIT'fEE _ VES NO — S7AFF 2. Has ihis personHirm ever been a ciry employee? — YES NO _ DIS7RIC7 COUFi7 _ 3. Does this personrtrm possess a skill not normally possessetl by any curcent ctty employee? SUPPOFiTS WHICH CqUNCIL O&IECTIVE? YES NO Explain all yes e�nswars on seperate sheet and ettaeh to green sheet INITIATING PAOBLEM, ISSUE, OPPOFTUNITY (Who, Whet, When, Where, Why)� �PTe'2 �MPt,ehlENt?N6 'f�lE ��Ifo�fBoR{iao� `�t�AcR PR��►w� t� 19q�, �f� 5�ra. go�an -rr�sNt��p o� Nuw�s�- �� coMwt�oE'D Gb1��5 �'T� PRoI'oRArM. �Tk1E5� RSCO'wiwfc�DATtoiuS �.��, � Re�t�tEUx� CiY ?� M�`loR, c�rY �7'�cFF� AND NKM�uS Cow�.�tuW� � oRfbl�izAc'Ro1.�S� '�- �fLE INU-c,if�C-"D i� 'r't!�' R�1 S�p ADVANTAGESIFAPPROVE�: �"� Qctc�tutwt w�u. gE N�o0.�E PRO-Ae�c7u� ��F R.�P�NSwS ,.� �� Np,�OS oF Tf{� P�R'r�GtPAT7TS DISADVANTAGES IF APPROVED: '°�` �„�D�C/ — DISA�VANTAGES IF NOTAPPROVED TFF�i PRpfoKJt�l WlLL lJOT IrIOUFi �F�RWARO l.t�lTN "t'FlE ��jq$ �?gj{t440 ��'cle rotxlDEL1uES, TOTAL AMOUNT OF TRANSAC710N $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVI7Y NUMBER FINANCIAL MFORhfATION' (EXPLFIN) L� . � Council Member Hazris March 4, 1998 � Y`t�e y� v`C� e r.�S STAR Proposal To maintain the competitive chazacter of the program, to provide some flexibility within the STAR program and to continue to encourage long-term, strategic investment in our community, ihe following is proposed: Maintain existing annual cycles for the Neighborhood STAR Grant J L,oan Program and the STAR Small Grant Program. 2. Dedicate 100% of annual STAR Smal] Grant and STAR Neighborhood Cnant revenues to existing annual competitive processes. 3. Dedicate 75% of STAR Neighborhood Loan revenues to existing annual competitive processes. 4. Dedicate 25°l0 of Neighborhood 5TAR Loan revenues to a special fund that can be accessed year-round by appiicants with the following conditions: The applicant must demonstrate a de�nite need to forgo tne annual STAR process (i.e. there is a time constraint); The loan must be approved by the STAR Board and the City Council; and Any remaining balance in this fund will be allocated by the City Council as part of the neighborhood STAR annual cycle. ��-ra� � SAINTRAUI STAR VAOGftAM �� 1 1� �� i f' � �� • � �� . - Applications for STAR LOANS will be accepted at any time throughout the year. ��, �- Elimination of pre-application process. All completed proposals will be considered for funding �- STAR LOANS less than $Sa,000 will nat require a 1:1 match. � ?..� - Seed Capital Fund to be eliminated, making new program allocation goals: 60% laans and 40°lo grants. �- Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. �- Under the Revolving Loan Program, recourse will be to the end borrower. 1lPED 1415YS\S{{p�DUGH1STAftPROP. W PD � oR��NAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines E� RESO�VED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Gouncil of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it FURTHER RESOLVED, that the Mayor and City Council hereby formaNy express their gratitude to the members of the Neighborhood STAR Soard for their efforts and commitment to the STAR program and the City of Saint Paul. � Funnt�k 2Esau��p, �iaf t�ic L��"`�� fs� rucar�ura�s a�u�2�fs t�o ��f v� � Pra ��'�'��, �� P,� �t� i�� a�d a;r� ...1.1_ Adopted by Council: Date Adoption Certified by Council Secretary: �y Approved by Mayor: Date � �Y�� 1 ��' ag a� dCouncil File # +� � �� s� Green Sheet # �� RESOLUTION CtTY OF SAINT PAUL, MINNESOTA h'�u1i �,1998'1 Planning & Economic Development: : rJ �� B _ �� -�-- Form , ppr ved �)Ci � Attorney: By: � DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pumela Wheelocl5 Direclor CTTY OF SAINT PAUL Norm Coteman, Mayar DATE: February I1, 1998 TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmember Fiarris Councilmember Lantry Councilmember Reiter 25 West Faurth Sheet Sainr Pau[, MN SS102 FROM: Pamela Wheelock, Directo� Deparhnent of Planning and Economic Development SUBJECT: STAR Neighborhood Program - Cycle 4 ��'�f Telephone: 612db6-6900 Faaimile: 612-228-3220 In the first three cycles of the Neighborhood STAR program over $12 miliion doilars has been awarded in loans and grants, leveraging more than $43 million in additional activity. Nearly $600,000 has been awarded for 39 Nei�hborhood Small Grants. Loan repayments meanwhile in 1997 were approximately $160,000 and an estimated $500,000 is expected in 199$. During each year of the first three cycles, changes have been made to the guidelines, in an attempt to make the program more responsive, e�cient, and user friendly. This year is no excep6on and the STAR Board is recommending several changes to the guidelines to facilitate awarding the funds to neighborhood arganizations and smaii businesses more quickiy. These recommendarions are in response to concerns they have heard during the previous cycles. They, too, are vitally interested in being more responsive to the citizens and businesses. The Board's recommendations have been endorsed by the Mayor, staff who work with applicants, and other interested parties. I strongly encourage you not to delay in adopting these recommendations so groups can begin to make applications for these funds. We consistenfly hear from neighborhood development organizations that it is important that they haue predictability as to funding streams. It is not only important to speed up the process but also to keep the cycle going so they can move forward with their plans and projects. It is PED's desire to utilize STAR and other sources to develop thoughtful, sirategic projects in partnership with neighborhood organizations; these changes allow us to do a better job at that. � Foilowing is a short stimmary and reasoning for each of the guidelines changes the STAR Board is recommendiug. Staff agree with the Board that these changes would enable the Board and ° _ staff to be more responsive to applicants. APPLICATIONS FflR STAR LOANS WII,L BE ACCEPTED ANY TIlYLE THI2OUGHOUT THE YEAR. The STAR Boazd feels that it is often difficult or impossible for small businesses or neighborhoad organizations to anticipate their needs a year in advance. They are, therefore, recommending that applications be accepted at ANY time during the yeaz. They aze willing to convene as needed to review applications for recommendation to the City Council. A number of organi�ations have found themselves in a position of having marketed a program, built up enthusiasm in the communiry, only to find that they do not have enough funds to meet ail of the need. In other cases, opportunities come up which cannot wait up to 18 months depending on STAR program consideration and approval. It is also difficult to work around Minnesota's short construction season. This proposed change in the process would also allow groups to reapply during the year if the Board does not recommend a project, and, that group's circumstances change. ELIMINATION OF PRE-APPLICATION PROCESS. ALL COPVIPLETED PROPO5ALS WILL BE CONSIDERED FOR FUNDING. The purpose of this recommendation is again to speed up the application process and to reduce the amount of paperwork applicants are to submit. STAR LOANS LESS THAN $50,000 WILL NOT REQUIRE A 1:1 MATCH. The requirement far a match for loans less than $SQ,OQO again would mean less paperwork for the borrower. This match requirement often puts the City in a less advantageous position as a lender. It is particularly burdensome for those small fix-up loans. A minimusn match of one ($1) private dollar far every one ($1) STAR doliar received as a grant as well as ANY loan over $SO,OQO would still be required. County, private, state and federal funds can be used as a match. Priority will be given to projects matched with private funds. Matching funds are to be direcfly related to completing the project ar program in the applicant's proposal. Direct financial resources as weli as indirect contributions can be inciuded. The value of sweat equity and/or volunteer labor can be used for up to 30°/a of the total match. SEED CAPTTAL FUND TO BE ELIMINATED, PYIAKING NEW PROGRAM ALLOCATION GOALS: 60% LOANS AND 40°ta GRANTS. The Board has learned from the previous cycles that the seed capital fund was difficult to use in tlus pragram. They have also heard from appiieants that addirional grant money would be welcome; thus, the recommendation for a 60% loanl 40% grant split. �t��r LOANS �100,000 OR LE5S RECEIVING APPROVAL OF THE STAR BQARD MAY BE APPROVED BY THE DII2ECTOR OF PED. Again, this recommendation as to speed up the process and is consistent with other programs. Tnnely reports would be submitted to the City Council, reporting on all loans approved. UNDER TAE REVOLVING LOAN PROGRAM, RECOURSE WII�L BE TO TFIE END BORROWER. The current guidelines require that the revolving loan operator own the loans and recourse is to the entity operating the program. The STAR Boazd is recommending that recourse be with tha end-borrower. ��,� The attached material is for your review for the February 18th policy session on the STAR Neighborhood Program - Cycie 4. A. List3ng of STAR Board Recommendations B. Neighbarhood STAFt �oard Member List C. STAR Fact Sheet D. Draft STAR Guidelines E.. Resolution accepting STAR Guidelines. F. 1997 Annual Report G. Resolution Accepting 1997 Annual Report 1�PEDW^YS24SHAREDIOTTOLSTARMEMO.WPD .,, . ; NEIGHBURHOOD SALES TAX REVITALIZATION (STAR) PRCJGRAM STAR GUIDELINES S�AINT PAUL STA R P R4G RAM �� Revised February 25 9998 Strikeout version Additional copies of STAR Guidelines can be obtained from the Department of Pianning and Economic Development, 25 West Fourth 5treet, Saint Paul, Minnesota 55102, or call 266-STAR (266-7827). 98'-iz� STAR Draft Guidelines TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives 11. 1998 Expectations iil. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies PART 2 - Eligibility I. Eligible Applicants ii. Ineligible Applicants III. Eligible Areas IV, Eligible Activities V. ineligible Activities PART 3 - Application Procedure I. Decision Process I1. Proposal Identification and Development ill. Procedural Guidelines IV. Application Contents PART 4 - Project Selection I. The Neighborhood STAR Board II. Selection Process 111. Evaluation of Applications IV. Speciai Consideration February 25, 1998 Page 1 Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 10 Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 PART 5- Loans, Grants,-Seed-�a�itaF and Leverage Requirements 1. Amount of Funds Allowed Per Proposaf and Criteria for Small Grants Page 18 11. Leverage Requirements Page 19 III. Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 STAR Draft Guidelines Page iii February 25, 1998 9d' /2 8 STAR Draft Guidelines V. Project Development and Implementation PART 6- Review and Evaluation I. Project Evaluation 11. Annua{ Report to the City Council and Mayor III. Annuaf Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS February 25, 1998 Page 26 Page 28 Page 28 Page 28 Page 28 Page 30 For STAR guidalines or applications call 266-STAft {7827). For other information, call STAR Staff.� Sob Hammer {266-6693), Jill Hughes (266-6650) or Paut Mordorski (266-6683). STAR Draft Guidelines Page iv Fe6ruary 25, 1998 f � r ♦ STAR Draft Guidelines PART 1 - Program Description * Program Purpose and Objectives * 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * General Policies February 25, 1998 1. Program Purpose and Objectives Saint Paui neighborhoods are one of the City's most important strengths, and the sales tax proceeds represent an extraordinary opportunity to revitalize and invest in our neighborhoods. The sales tax proceeds, one of the City's most flexible funding sources, are io be ailocated through the STAR Program for capital economic and community development projects in Saint Paul neighborhoods. These very flexible City funds should promote sign�cant and positive long term economic impact. STAR funds should leverage private improvement efforts and investments and should be used when projects are ineligible for use of other available City resources. Desired Outcomes: The Neighborhood STAR Program funds capital projects that: A. Economic development: 1. enhance the commercial and industrial tax base 2. create family supporting jobs 3. improve andtor stabilize local businesses and provide attractive and economically viable neighbarhood commerciai areas 4. reuse land foliowing poilution clean up B. Community development: 1. improve andlor stabilize housing stock andlor increase market value 2, provide new housing that meets an identified need in the market 3. improve public infrastructure and private green space especially if the projects are linked to related residential or commercial improvements STAR Draft Guidelines Page 1 February 25, 1998 9�' -ia 8' STAR Draft Guidelines February 25, 1998 il. Mayor and City Council Expectations for STAR Proposals The Neighbarhood STAR Board is more likely to recommend funding for Projects and Programs that: 1. Increase or maintain the tax base as a primary benefit. 2. Are high quality, market driven and enhance neighborhood stability. 3. Are part of a City approved plan or initiative, and are targeted to address identified unmet needs. 4. Are the resuit of collaboration and partnership with appropriate stakehoiders. 5. Are part of a broad based and integrated approach to improving neighborhoods that results in larger and fewer pro}ects. 6. Address through a citywide program, needs that affect more than one neighborhood. 7. Include participation by private lenders, or a clear indication that private fender participation is not possibie or appropriate. &. Request Gity funds so the percentage of city funds in the project is the least amount with the best terms so as to maximize leverage of other resources. 111. Strategic Use of Funds Sales tax funds are a very important resource for St. Paul neighborhood improvement, particularly since state and federal funding is declining. It is critical that the City be strategic in allocating these funds to achieve the greatest impact. Applicants should consider the following: The STAR Program is an effort to fund capital prajecfs that could not be done through existing City programs, and p�ograms that fiil gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants should consider contracting with others to provide technical services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. • Appiicants should look for opportunities to implement existing neighborhood plans and strategies, such as smatl area p(ans, or to propose improvements in conjunction with other City-pianned improvements, such as residentiai street paving. • Community organizations are encouraged to plan for community STAR Dreft Guidelines Page 2 February 25, 1998 98-/28 STAR Draft Guidelines February 25, 1998 development over a period of several years so that, increasingly, STAR project funding can be guided by strategic priorities for successfui long- term improvement. tV. Performance-Based incentives The STAR Program is designed with incentives to reward successful projectslprograms. Key features include interest rates that are lower than market rates and pnncipal and interest repayments that are deferred for fhe firsf year. incentives are based on the type of STAR project or program. Loan Incentives for Projects 1. Rebate on loans: A rebate of up to 10% of the principai portion of the City loan repayment amount as an incentive for repayment of the City loan provided all payments are made on time. Rebates will be credited as additional loan principal.: 2. Interest earnings: Loans are deferred for 1 year from the date of the agreement with the City. This, for example, allows revolving loan operators (RLO's) who begin to make sub-borrower loans immediately, to benefit by receiving payments from sub-borrowers for up to a year before the first city-loan payment is due. 3. Other Revolving Loan Program (RLP} Incentives: a. Origination fee - Revolving Loan Operators (RLO) may coilect from the sub-borrower, a loan ciosing fee of $200 or 1%% of the principal amount of the loan, whichever is greater. This fee also covers any potential coliection costs. b. Rate differentiat - Revolving Loan Operators may request a loan from the STAR Program at a certain rate (example 5%) and propose to make loans to sub-borrowers at a higher rate (example 8%). The RLO may keep the difference in interest rates. c. Grants used for loan programs: Revolving Loan Operators may receive a grant from the STAR Program to be used to operate a low interest loan program. The loan repayments wifl be heid in an interest bearing account. The principal must continue to be used to fund the revolving loan program. The RLO keeps the interest. V. Program Funding A. Fifty (50%) percent of the proceeds of the half-cent sales tax, along with its corresponding interest earnings, are dedicated to investment in the neighborhoods (including the downtown residentiai neighborhood and small businesses serving that residential population) of Saint Paul. STAR Draft Guidelines Page 3 February 25, 1998 98-/z F� STAR Draft Guidelines February 25, 1998 B. Each program cycle wiil be announced in December with an estimate of available tunds. The estimated funds wiii be noted in the annuai City budget as Neighborhood STAR program funds. A. AI{ocations 1. Siz�y {60%) percent of the neighborhood portion of sales tax proceeds shall be allocafed to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and will build a Iong-ferm, growth fund source for the future. 2. F� (40°l0) percent of the availabie funds shaii be aliocated to directyrants. seeel-eap+tslfi�- VI. General Policies Proposals must 6e neighborhood-based projects designed with neighborhoad representation to strengthen Saint Paul neighborhoods and address perceived and actual problems, needs and opportunities. Proposafs can be a project, program, or strategy that resuits in capital improvements in Saint Paul. These proposais may be generated by neighborhood and civic leaders, organizations, and businesses. Innovative proposals are encouraged. (See Page 6, 1., I1., lll.} A. In allocating tunding for projects, it is the intent of the City to provide geographic equity ot projects and doilars, over time. B. Up to 15°l0 of annual STAR funds may be used for muiti year funding to accommodate larger, long term -projects. C. The same or similar proposal cannot be submitted to the CIB Committee or the Cultural District organization in the same year. D. For loans exceeding $50,000 and ALL grants, sales tax funds shaii be matched with other resources on at least a 1:1 basis. Loan requests under $50,000 submitted directly to the STAR Board do not require a match. E. Projects considered to be of insu�cient quality or impact will not be recommended fior funding, even if funds are available. F. In the event that Community Development Block Grants (CDBG) funds are added to the STAR Program, areas of the city that are generally considered eligibie for CDBG funds, should receive their fair share of CDBG funds as well as their fair share of STAR funds. STAR Draft Guidelines Page 4 February 25, 1998 i i . STAR Draft Guidelines PART 2 - Eligibility � Eligible Applicants * Ineligihle Appiicants * Eligible Areas * Eligible Activities * Ineligible Activities February 25, 1995 I. Eligible Applicants A. Any public, private, or non-profit entities, which are located within or do business within the cifij ofi St. Paui, except as identified in 11. below. B. City departments and quasi-governmental entities are eligible when in partnership with or supported by an established and experienced neighborhood group. C. Individual businesses are eligible to apply for $50,000 or more in STAR funds, provided the business is: 1. opening up a business in St. Paul; or, 2. expanding the space occupied; or, 3. creating new jobs. (Programs serving individual businesses for smaller projects are also eligibie.) II. Inetigible Applicants A. Churches and religious organizations. B. Political parties and political action groups. C. Federal, state, and county agencies and departments. D. Individual homeowners. (However, programs serving individuai homeowners wiil be efigibfe.) E. Individual businesses for proposals under $50,000. 111. Eligible Areas A. All areas within the legai limits of the Gity of Saint Paul. IV. Eligible ACtivitieS include any physical components of strategies, programs, andlor projects which strengthen andlor improve the neighborhoods of Saint Paul. Capital improvements have an expected life of seven or more years. STAR Draft Guidelines Page 5 February 25, 1998 9� �2 t STAR Draft Guidelines February 25, 1998 Some examples of efigibie activities are: A. improvements to residentiat, commercial and industriai property such as rehabilitation, construction or other capital improvements. Exampies include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, piumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. 2. The project must be in compliance with all legal requirements of the City, such as: a. The property must he appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. d. Prior to project implementation, ali necessary permits must be obtained. Upon compietion of improvements, the applicant must have foliawed, and the property must meet, all applicable code, permit and license requirements. Finaily, the property must be properiy inspected and must have a current Certificate of Occupancy upon compietion, if applicable. e. An applicant must have the ability to repay if requesting a Ioan and be an acceptabie credit risk as determined by a bank or the City. (See underwriting standards). f. Funds will be refeased on a reimbursement basis upon receipt of documentation of eligible expenses. g. Little Davis-Bacon regulations (labor standards) must be followed as applicable. B. Economic development efforts such as new housing, business development or expansion, or parking development. The foilowing are eligible only when undertake� as initial steps of a larger STAR capital project that includes substantiaf rehabilitatian or construction: 1. Acquisition costs including purchase options; 2. Demolition costs; 3. Utility relocation and construction as it relates to a project; 4. Clearance: acquisition of land or a building for clearance wiil only be undertaken when it is an initial step in a proposal which will result in a capital project; 5. Pollution testing and soil remediation as part of a larger capital project. STAR Draft Guidelines Page 6 February 25, � 998 q 8 �Z � STAR Draft Guidelines February 25, 1998 6. Costs of developing parking facilifies are eligible activities. {f the parking is to be private(y owned, the STAR investment must be in the form of a loan, secured by a lien on the property. C. Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative lighting, etc. particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as weli as aesthetics. 2. The Program is not intended or normaliy sufificient to do major public improvements such as street paving, curb and gutter, sewer and water. Major pubfic improvements shouid be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvements, the STAR proposal must identify how this project area witi privately pay fior these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaliy-binding and enforceable plan for maintenance andlor operation over the usefut lite of the improvements proposed to be funded through the STAR program. The most acceptable method for maintenance and operation of above-standard public improvements is assessments on the property taxes of ihose receiving the benefit from the improvements, though proposals that commit private or non-profit organizations to operate and maintain above-standard public improvements will be considered, depending upon (at the City's judgement) the viability ofi the organization and the enforceability of the legal agreement. D. Direct project costs specifically pertain to the execution of the capital project. A minimum of 8U°lo of STAR funds must be spent on hard construction costs for physical improvements. Definition: Direct project costs are those which are necessary to carry out capital project construction to completion. Examples are dependent on the type of projecUprogram being implemented and may include: 1. building permits; 2. professional design, engineering, soil testing, environmental, legal, financing, licensing and inspection fees; 3. general contractor's charges (must be in line with indusiry standards); 4. developer's fee or project coordination fee that is appropriate to the projeet and in line with industry standards; 5. direct costs of staff management that are cleariy associated with STAR Draft Guideli�es Page 7 February 25, 1998 '% � STAR Draft Guidelines February 25, 1998 the completion of a capital project. persons receiving the benefit ot the project/program are not eligible fior developer's fee. (Example: a business owner rehabilifating his/her business site.) V. Ineligible Activities A. Any activity not of a capital (bricks and mortar) nature. B. Planning or study activities. C. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be included in your total project descriptionfstrategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. E. Refinancing existing debts, except when it results in business expansion, job creation, or is part of a larger project. F. Non-fixed improvements (Example; o�ce equipment, computers, fumiture, te%phone systems). G. Working capital. H. General administrative expenses inciuding staff management, pianning, development and administrative costs and general maintenance costs. Costs accrued before final approval of the application, are not eligible for sales tax funding. J. Activities located outside the city limits. K. Major public improvement projects, i.e., street repaving, sewer work, recreation center, etc. L. Sweat equity - payment for the applicant's own labor and performance for construction or improvements. M. Projects within the Saint Paul Cultural District, as long as the Culturai portion of the sales tax is targeting that district. STAR Draft Guideiines Page 8 February 25, 1998 . , r: , STAR Draft Guidelines February 25, 1998 N. Duplication of a current City program such as the Houses to Homes Program, or the Water Utility's Lead Pipe Replacement Program. Applicants are encouraged to coordinate or /ink proposed projects with existing programs. PART 3 - Appiication Procedure * Decision Process * Praposal Identification and Development * Procedural Guidelines � Application Contents Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications foryrants are due approximately four to six weeks after Orientation Worksho� C. Review of SmaN STAR Grant final applications by STAR Board, foilowed by Gity Council approvai. D. STAR Board, Planning Commission, CIB Committee, and staff review of final applications for large loans and grants. E. Recommendations for funding submitted to Mayor. F. Final approvai of funding by City Councii. G. Commitment letters with specific requirements and time line for actions to be completed sent to those approved for funding. H. Contracts negotiated assuming stipulations and time lines have been met. NOTE: The annuai time line will be announced at the beginning of each funding cycle. 11. Proposal Identification and Qevelopment The STAR program encourages up front strategic thinking and planning at aii leveis and community coilaboration prior to the submission of applications. The goai is to improve the quality of the appiications qualitatively and technicaliy. Earty and active participation of Councii, community groups, interested individuais and staff is expected in development of proposals. A. COMMUNITY GROUPS AND INDIVIDUALS INTERESTED IN STAR FUNDING - Initiate program and project proposals addressing important neighborhood and community issues. Indicate levef of community STAR Draft Guidelines Page 9 February 25, 1998 9� �2 8 STAR Draft Guidelines February 25, 1998 support. Provide prioritiaed letters ofi recommendation rather than blanket recommendations for ali proposals within community boundaries or service area. 6. CITY STAFF - Provide tecnnical assistance tp applicants, 'rf requested, to help assure a complete and strong application_ Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other funding sources as a tool in accomplishing the City's goals. 111. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycie. B. City staff wiil make availabie for interested parties copies of the appiications tor comment and review. C. City staff wiil organize a Small Grant Program workshop at the beginning of each cycie to provide program application information to prospective applicants. Attendance at the orientation workshop is strongiy recommended. D. Applications may not be changed or modified once submitted. It is the appiicant's responsibility to thoroughly develop the proposal before submission. However, appiicants may be asked to provide additional information to the STAR Board in the course of its review, or applicants may be asked to consider a modified proposal as suggested by the STAR Board during its decision-making process. IV. Application Contents - Large Loans and Grants All appiications must be submitted on the STAR application form and contain the following information, including but not limited to: A. A description of the proposai, inciuding: 1. Neighborhood probiems or needs that the proposat addresses. 2. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or efements. 4. Neighborhood impact and projected results. B. Level of �eighborhood support and participation. 1. One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be pi'iOntiZed. exampfe: If an organization sends letters of supporf for 5 proposa/s, fhey must indreate ist chorce, 2nd, ete. STAR Draft Guidelines Page 10 February 25, 199$ 9� /z� STAR Draft Guidelines February 25, 199& 2. Description of neighborhood participation used in proposal development. C. ApplicanYs management experience and capability, inciuding past experience with similar programs. A board membership list must be provided, if applicable. D. Requested amount and type(s) of Sales Tax funding (grant, loan). Terms must meet the STAR program guidelines and goais. E. Fulty devetoped budget inctuding: 1, Construction estimates. 2. Level and source of private commitment. 3. Sources and uses statement for ali project funds. 4. Ali required financial information such as: a project proforma, sources of private lender financing, three years of financial data, including annual balance sheets, operating statements, and/or tax returns; and other information as required. F. Time line for project that is specific and lists milestones. G. Map indicating project location and street boundaries. H, For proposed programs, either complete program guidelines must be attached, or, at minimum, questions such as the following must be answered on the finai appiication: 1. How will you choose who will receive loan/grant? 2. Do you have a loan or grant committee, and what is its structure? (Example: number, types of expertise) 3. Wili there be a mortgage on the property or a"due on sale" requirement? 4. Will there be a residency requirement? 5. What will be your underwriting criteria? Other questions as appropriate may be added to the application form. If the proposal is funded, the guidelines must be approved as part of the contract with the City. Confliet-of-interest policy of entity. Evidence of site control at the time of appiication. Evidence the applicant has {egal authority to carry out the project on the property. K. For proposais that would remove property from the tax rolis, a description of a proposed PILOT (payment in lieu of taxes) that will replace the lost property tax revenue. STAR Draft Guidelines Page 11 February 25, 1998 9�-iz� STAR Draft Guidelines February 25, 1998 L. If above-standard public improvements are proposed for funding, a description of the legally binding and enforceable plan for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a description of how they will measured. N. Application fee: A non-refundabie application fee of $100 must accompany application forms. A fee of $50 will be charged for the Small STAR Grant Program. O. Appiications which are incompfete after the due date wiil be returned to the applicant. Applications must be f� completed. Appiications that are incomplete wiil be ineligible for further consideration. If a proposal is incomplete or does not appear to be sufficiently developed to allow for reasonable review, the STAR Board may return the proposal to the applicant. The Board may suggest that, provided further development work is completed, the proposal may be re-submitted. Applicants should form coalitions if capacity to implement a project is limited. Contract responsibilities for joint applica�ts must be spelled out in the STAR contract, following funding approval. PART 4 - Project Selection * Neighborhood STAR Board * Selection Process * Evaluation of Applications * Criteria for Special Consideration 1. The Neighborhood Sales Tax Revita(ization (STAR) Board is appointed by the Mayor and approved by the City Gouncil. The 15 member board setves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. II. SeleCt1011 P1'OCeSS - the selection process for grants will be competitive and the Board wi(1 consider the quality of the proposals. The number of applicants to be funded is dependent on the size and quality of the proposals and the availability of fiunding. STAR DraR Guidelines Page 12 February 25, 1995 i i � . STAR Draft Guidelines February 25, 199$ A. Applications, upon submission, may be reviewed and summarized by staff. Applications wili: 1. Se accepted for review by the STAR Board. An estimate of City staff project management costs will be added to the proposal. Additional information will be provided to the Board by the folfowing: a. The PED Credit Committee will review the loan applications for fiscal responsibility, risk evaluation and appropriateness of interest rates, terms and conditions, and provide this information to the STAR Board to assist them in making recommendations to the Mayor and Gity Council. b. The Planning Commission will review proposals for compliance with the City's Comprehensive Pian and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informationai purposes to aitow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. if other entities want to review and make comments on applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board aciion. The applications, excluding financial attachments, wilf be available for review in centrai locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. -OR- 2. Be rejected by the STAR Board: a. Applications that are incomplete after the due date will be ineligible for further consideration. b. Applications that are regarded as premature or insufficiently developed will be returned to the appficant. B. The STAR Board will strive to identify the best possible proposa{s within the context of the STAR Program guidelines. C. The STAR Board will also consider CIB Committee and Planning Commission comments, and credit committee guidance, and make STAR Draft Guidelines Page 13 February 25, 1998 � i .� STAR Draft Guidelines February 25, 1998 funding recommendafions to the Mayor and City Council. D. The Mayor will review the recommendations of the S7AR Board, CIB Committee and Planning Commission comments, and forward his recommendations to the City Council. E. The City Council will review the Mayor's recommendations and, by resolution, make final selections of STAR project proposals and approve their budgets. III. EValUatlon of AppIICBtIOnS: Proposals will be reviewed for the following eligibility and additional selection criteria. A. Proposal supports City Council priorities for the use of the Neighborhood Sales Tax proceeds. B. Proposal meets the minimum leveraging ratio. (See "Leverage", Part 5.11) C. Proposal is an eligible program activity. (See "Eligible and Ineligible Activities" sections - Part 2.IV and � D. Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small area plan, capital allocation policy or adopted City ordinances and policies. F. Proposal is financially feasible. Requested STAR funds together with other project resources are adequate to complete the proposed project. G. Managing organization has the capability to successfully manage and implement the project or program. H. Proposal effectively addresses a previously identified or otherwise clearly documented neighborhood need or goal. Proposal was developed with sufficient neighborhood/community input, and is neighborhood based. STAR Draft Guidelines Page 14 February 25, 1998 9�-i2 8 STAR Draft Guidelines February 25, 1998 IV. Special Consideration: Proposals may receive more favorable consideration during the selection process if: A. Pcoposal has the following: 1. a positive impact o� tax base; 2. a positive impact on neighborhood businesses; 3. a positive impact on residential neighborhoods; and/or, 4. a positive impact on job creation (State law requires accountability fior public funds spent on job-creation projects). Note: To avoid double-counting ofjob creation, please take the total number of jobs, figure in all public monies, and pro-rate the number of jobs based on the percentage of STAR doflars in ihe project. B. Proposai is part of a well-defined, broad strategy for neighborhood development or maintenance. G. Activities are su�ciently concentrated within an identified geographic area to result in a high visual or economic impact. D. Su�cient pianning or feasibility analysis indicates a high probability of success. E. Neighborhood support is documented—an appropriate mix of residents, property owners andior business people relevant to the project were included in the planning, development and implementation of the proposal. F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. G. Proposal leverages additional funds or resources which exceed the required match. H. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. Proposal is recommended in a District Council Plan, the City's Comprehensive Plan, in an adopted small area plan, or through another similar neighborhood planning process. K. Proposal is in reaction to, or anticipation of, some City action. Examples: STAR praft Guidelines Page 15 February 25, 1998 � � • , � STAR Draft Guidelines February 25, 1998 a condemnation for eminent domain, widening of a street, or other public improvements. PART 5- Loans, Grants, and Leverage Requirements * Amount of Funds Allowed Per Proposal and Criteria fior Small Grants * Leverage Requirements � * Operating a Revolving Loan Program (RLP) * Loan Standards * Project Development and Implementation I. Amount of Funds Allowed Per Proposai and Criteria for Small Grants A. Regular STAR Program 1. There are no maximum loanigrant request amounts for the regular STAR program. 2. The minimum for the regular program is greater than $20,000. Individuai business requests must be for $50,00� or more. (See 2.I.0 for more details.) Request for funds of $20,000 or less will go to the Small STAR Grant program. B. Small STAR Grant Program - requests for amounts of $20,000 or less wifl be in the form of a grant. The application and selection process wiil be reduced. Funding approval may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Smali STAR Grant Program is $20,000. 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a projecYs selection and approval, a standardized contract will be signed witn the Cifij. it. Leverage Requirements A. A minimum match of one ($1) private dollar for every one ($1) STAR doliar is required for loans that exceed $50,000.00 and all grants. B. County, Private, State and Federal funds can be used as a match, C. Priority will be given to projects matched with private funds. City funds, such as CDBG, TIF, CIB, and HRA funds cannot be used as a match, unless the City funds are loans. City loan funds which will be repaid are considered an eligible match and forgivable City loan are not eligible. STAR Draft Guidelines Page 16 February 25, 1998 9� /Z� STAR Draft Guidelines February 25. 1998 D. Applicants are encouraged to finance STAR direct project management expenses with outside private resources, i.e., fioundation grants, cash donations, etc. and to use these funds as part of the match. Staff administration and marketing of the STAR projecUprogram must be funded with non-STAR dollars, and may be used as a match. General operating funds of the organization are not an eligible match. E. Matching funds must be directly related to comp{eting the project or program in the applicant's proposai. F. Eligible Matching contributions may include: 1. Direct financial resources such as private expenditures for commercial or residential physical improvements, contributions or funds raised from within the neighborhood, foundation and corporate grants, and local lender commitments or operating assessments estimated over the useful lifie of the improvements. 2. Indirect contributions can incfude: in-kind services from residents and businesses such as personnel, professional services, office space, project supplies, volu�teer labor, and sweat equity for physical improvements. The value of sweat equity and/or volunteer labor may not exceed 30% of the total match. G. Ineligible matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR applicants such as already existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. (Higher sweat equity matches wiil be considered for the Smail Grant program.) 4. General operating expenses. 5. Any donation not directly related to the STAR projec� 6. Any forgivable loans and Gity GDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9, Any improvements made prior to submission of the final application. H. Operating Assessments: If STAR capital funding is to be matched by the operating assessment, no funding can be disbursed until final ratification of the matching operating assessment. Under no circumstances will any match be reimbursed with STAR funds. STAR Draft Guidelines Page 17 February 25, 1998 9� /a� STAR Draft Guidelines February 25, 1995 J. The STAR Board may, at their discretion, recommend approval of other matching contributions on a case-by-case basis. K. Exceptions to the match requirement will be considered by the STAR Board in highly unusual cases, such as when a proposal is in response to an urgent need or disaster. L. When interim financing is used, the grant portion of the project will be considered matched when private funds replace the loan amount. For example: rehab of a house costs $90,000; appraised value after rehab equals $60,000; resufting in a subsidy of $30,000. The STAR program provides a grant of $30,000, and interim construction financing of $60,0�0. Private mortgage dollars of $60,000 are repaid to the STAR program upon sale of property, and is considered a match to the $3�,0�� grant. �n= _ -- :: ---- -- --- -- - --- - - -- --- - -- ---- -- - - - -- - - =-- ------ -- - -- -- - ---- --- -- - - - - - - -- - --- - uttii=i i '_ "': ' ' "' _ _ ' " _ ':: ' ' ' ' "'_' "" '"" ' "" ' " i _ " '_ ' " ' " ' "'" " " "' ��iti%tG�if:Nnr��u:�:.�in�iGnr.��m�iya:niiti��indrii%�ic�nir:.�i��eJ.uG�ai�i m�:: ' _ IV. Operating a Revolving Loan Program (RLP) Revolving Loan Program: Applications may be made to the STAR program for funds to operate a revolving loan program that allows the STAR funds to be recycled for 3 or more years from the date of the contract with the city. 1. The City and the STAR loan recipient sign a contract authorizing the recipient to operate a revolvfng loan program. 2. The STAR loan recipient—the Revolving Loan Operator (RLO)—makes capital improvement loans to sub-borrowers. 3. Description of terms: All sub-borrower loan payments may be sent to a servicing agency hired by the City. The payments are STAR Draft Guidelines Page 18 February 25, 1998 9�l-�2 � STAR Draft Guidelines February 25,1998 held in an interest bearing account reserved for the RLO. The principal, which must be used for capital improvements, is available to the RLO for additional sub-borzower loans. The interest may be used by the RLO as needed. EXAMPLE: a. Year 1: as with all loans, there is no charge of i�terest or principal to the RLO. b. Years 2 and 3: monthly interest and/or principal payments on the total STAR loan is paid to the City during the 2nd and 3rd year. Principal payments to the city may be deferred as agreed upon by the RLO and City staff. c. Year 4: principai and interest payments for the RLO's STAR loan are based on the amortization schedule for the entire STAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthiy basis from year 4 until the loan is repaid to the City. Applicants may request a longer period of time to revofve the STAR funds. The City will review the condition of the RLO's files, sub- borrower loans, and repayment history prior to approval of an additional term. 4. Risky loans: If a RLO desires to administer a loan program of moderate risk or a mix of high and low risk loans, an application should be considered for a STAR grant or a combination foan/grant to help the RLO mitigate the risk of non-payment. Both grant and loan fiunds can be loaned to sub-borrowers through the revolving loan program (RLPj. The grant funds may be used to provide a cushion against default of sub-borrowers. lf a RLO desires to administer a loan program where repayment ability of the borrower is highly questionable or doubtfuf then an application should be made for a STAR grant. V. LOail St811daPdS (The financial incentive to encourage repayment of STAR {oans are listed in Part 1, IV, on Page 2.) The goal of the STAR loan program is to earn 5°la interest over time. However, applicants may propose rates and terms that best suit their project. A. interest rates and terms will be proposed by applicants. Rates and terms may be modified after financial analysis of the applicanYs request by the PED Credit Committee. Results of that analysis are fonrvarded to the STAR Board, which makes recommendations fior City Council action. STAR Draft Guidelines Page 19 February 25, 1998 9� iz � STAR Draft Guidelines February 25, 1998 B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City will be listed on conditional mortgages and conditional guarantees to be signed by the sub-bo�rower and the RLO. This provides some protection for taxpayer dollars in the event that the RLO goes out of business. C. Default: a loan is in default when mote than 10% of the amount due to the City is delinquent. 1. On projects: the following action will be taken: a. City staff works with the borrower on a correction plan or a work-out plan for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process and collection of the borrower's STAR loan. c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: (1) collection endeavors; (2) workout plans; (3) foreclosure procedures 3. Other remedies for default andior poor performance: a. The entity must demonstrate how the conditions that led to the default have been remedied: staff training, staff experience, cofiaboration with more experienced lender, etc. b. The entity may be disqualified from participating in the STAR program. D, City origination and servicing fees 1. Individual payments for single projects and all payments for revolving loan program (RLP) loans will be processed through the City. Sub-borrower loans initiated through revolving loan programs will be originated and closed by the Revolving Loan Program operator (RLO). 2. Servicing fees. a. Loans and grants originated through the City (programs or single projects) will be charged a closing fee equal to 1'/z% of the STAR amount, before any disbursements. STAR Draft Guidelines Page 20 February 25, 1998 9� iZ� STAR Draft Guidelines February 25, 1998 b. The City's servicing agency will charge a fee per loan payment. c. A charge of 5% of the monthfy payment may be assessed on late payments over 15 days delinquent. d. If another party assumes the mortgage, a 1%z% assumption fiee on the outstanding balance wili be charged (assumption will occur infrequently and must be approved by the City). G. Loan loss percentage: 1. STAR Program portFolio: In order to address loan needs which can not be met through standard financial institution lending programs, the STAR Program is allowed up to a 20% loss rate. The City's risk rating system will be used to help assure that the program operates within this range. 2. Loan loss percentage - Revolving Loan Programs: Revolving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principal payments. H. Risk rating: All loans will be risk-rated, utilizing basic fundamentals of sound credit. These fundamentals include: an evaluation of the borrower's overall capital position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvallservicing. Additionally, considerable weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The following categories are used to assign a risk rating: Risk Ratinq # °lo Loss ACCEPTABLE (1} 5% SUBSTANDARD (3) 10% , DOUBTFUt (4) 50% LOSS (5) 100% A portfolio rating no lower than a Substandard rating is necessary to maintain the 20% {oan loss fevel allowed by the STAR program. Since nonrecourse Ioans would drop the loan loss level below the 20% requirement, these loans are not appropriate for the STAR loan program. !n most instances, organizations looking for a nonrecourse loan should apply to the grant program. Because it is not possible to determine the specific quality of individual loans that will be made from a revolving loan program, certa+n standards STAR Draft Guidelines Page 21 February 25, 1998 , , STAR Dreft Guidelines February 25, 1998 for the program must be set to obtain a particular risk rating. Groups that can develop thorough underwriting standards will receive a better risk rating. All Loan Program (RLP) final applications should be accompanied by detailed and quantifiable underwriting standards. Vl. Project Development and Implementation A. Upon selection by the City Council, the STAR project applicant will: 1. Receive a letter of commitment which specifies a period of time during which the applicant must refine its project or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved appiicant wili have 6 months from the date of City Council approval to enter in to a City STAR agreement. Failure to execute an agreement will result in a cancellation of the City commitment. B. Implementation of the contract. The contract will be entered into between the City of St. Paul and the selected applicant and must contain: 1. A Scope of Services to be performed by all parties; 2. A private match section; 3. A budget seetion outlining all funding sources; 4. An implementation time line; 5. Appropriate liability insurance which insures the City of St. Paul; 6. Conflict-of-interest statements; and 7. Adherence to Federal, State and Local regulations as applicable. Policies pertaining to the use of funds such as prevailing wage standards, relocation requirements, a�rmative action, targeted vendor programs, the First Source program and state corporate welfare requirements. The nature of the project (i.e, residential vs. commercial) determines which regulations appiy. 8. Staff will hold a compliance meeting prior to implementation of the contract to idenfrfy regulations applicable to project activity. The contract will be signed in accordance with City policy. STAR applicants are cautioned not to make any financial commitments until they fully understand potential compliance and funding regufations. STAR Draft Guidelines Page 22 February 25, 1998 i r i i STAR Draft Guidelines February 25,1998 C. Sales Tax Fund distribution 1. Sales Tax Fund allocations will be provided on a reimbursement basis. Fina1 payment will be made upon completion of the project and receipt of the final project report and evafuation. At the time of completion ofi all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be returned to the STAR Fund. 2. If a program, such as a revolving loan fund, is established by the applicant using grant dollars, repayments accrue to the applicant for reuse in the program for which the grant was approved. 3. !f a revolving program is established by an applicant using loan dollars, the loan must be repaid in full. Any excess funds accrue to the applicanYs account and the program operator is responsible for handling delinquencies of loans they have originated. 4. As an incentive for fiscal responsibility, a percentage of the principal portion of City loan repayments 10% will be credited to the borrower annually. The remaining 90% is returned to the City's Sales Tax Fund for reinvestment in capital projects. D. Progress: Projects are expected to be completed within a maximum two- year time ftame as approved by the City Council. Proposals are selected based on certain criteria and may not be significantly changed during project implementation. PART 6- Review and Evaluation * Project Evaluation * Annual Report to the City Council and Mayor * Annual Review of Priorities * Audits and Quality Control I. Project Evaluation A. Status reports will be generated for each project, which will provide an ongoing monitoring process. The report will include project expenditures, status of match commitments, and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and report on individual projects for progress and comp{iance with contract. B. A final evaluation of each project will be required to determine the e�ttent to which the project has been successful. Project success will be STAR Drafl Guidelines Page 23 February 25, 1998 1� /28' STAR Draft Guidelines February 25, 1998 measured against expected project outcomes and the overall objectives of the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to the City Council and Mayor An annual STAR report should be presented each year and shoufd inc(ude: A. Progress report on all projects to date, their locat+ons, and costs. B. Fiscal analysis of overall program. C. Effectiveness in supporting priorities. D. Evaluation of the program process and suggested revisions. III. Annual Review of Priorities Priorities for the use of sales tax funds in our neighborhoods should be reviewed on an annual basis. STAR Board and City Staff shall conduct a review and forward any comments and recommendations to all interested parties. IV. Audits and Quality Control A. The City will establish a monitoring and control system which ensures that loan repayments are made under the terms of each project's agreements. 1. It will be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibility and ongoing program compliance. 2. Reports on revolving loan programs will be periodically provided to the funded entities to assist in their monitoring of their programs finances. B. Periodic external audits may be required. STAR Draft Guidelines Page 24 February 25, 1998 9�-iz � STAR Draft Guidelines February 25, 1998 APPENDIX: ACRONYMS AND DEFlNITIONS Acronyms CDBG Community Development Block Grant, a Federal grant to cities for community development activities that provide assistance primarily to low- and moderate- income persons. CIB Capital lmprovement Budget, the City's biannual budget for capital improvements. HOME Federal funds that assist development of low income housing. HRA Housing and Redevelopment Authority, the legal entity that undertakes redevelopment activities on behalf of the City (members are the City Council). PED Planning and Economic Development Dept., a department of City government, which administers the STAR program. RLO Revolving loan operator, an entity that operates a revolving loan program. RLP Revolving loan program, a program that gives out loans for housing or business improvements and uses loan repayments to make new loans. STAR Sales Tax Revitalization Program. TIF Tax increment financing, a mechanism whereby the City can capture the increased taxes generated by new development to help pay the costs (such as infrastructure improvements or soil clean-up) �ecessary for that development to occur. Definitions Administrative expenses - Costs for staff, office space, supplies, etc. necessary to run an organization. Adverse lending relationship - An entity or person has an adverse lending relationship with the Gity if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. A�rmative action - A City policy that requires a plan for recruitment of minority STAR Draft Guidelines Page 25 February 25, 1998 48 �ZS� STAR Draft Guidelines employees and the use of minority-owned businesses. February 25, 1998 Allocation goals - The percentages established by the STAR program for a specific distribution of STAR funds to loans, grants, small grants, and seed capital loans. Amortization schedule - A schedule for paying back a loan through installment payments. Annual report - The report that is done once a year on the Neighborhood STAR Program. Applicant - An entity applying for a loan and/or grant from the STAR program. Audit - An examination of an organization's records or accounts to ensure they are in compliance with financial and program standards. Borrower - A person or entity that takes out a loan. Capital improvement - A physical improvement of property that increases its value. Certificate of occupancy - A certificate issued by the City that indicates that a building has met all City requirements for legal occupancy of a specific use. City comprehensive plan - The set of plans and policies adopted by the City Gouncil to guide the growth and development of the City, including recommendations addressing areas such as land use, economic development, transportation, parks, and housing. Collateral - Property that can be assigned as security to ensure recovery of a loan, should a borrower default. Commitment letter - A letter informing an applicant of the City's intention to award STAR funds to an entity, subject to meeting certain stipulations and/or standards, and the signing of a contract with the City for use of the funds. Compliance meeting - A meeting held between City staff and entities that have been awarded STAR funds to discuss City requirements that must be met as a condition of City funding. Contract - A legal agreement between the City and the recipient of STAR funds, specifying the requirements that must be met in order for the recipient to receive STAR funds, including a scope of work. Credit Committee - A committee of staff from the Department of Planning and STAR Draft Guidelines Page 26 February 25, 1998 9�-�2 8 STAR Draft Guidelines February 25, 1998 Economic Development that reviews financial analyses of proposed loans and grants. The Credit Committee financiaf and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. Credit risk - An analysis of the probability that a loan will be repaid. Cultural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to projects that benefit the downtown cultural district). Deferred loan - A loan where repayment is delayed until some future time. For example, interest and principal on all STAR loans are deferred for one year from the date of the contract with the City. District council plan - An adopted plan for o�e of the City's seventeen planning districts; considered part of the City's Comprehensive Plan. Eminent domain - The authority of a government to take, or authorize the taking of, private property for public use. Entity - An organization that has been legally organized and established through the State of Minnesota (such as a company, non-profit organization, district council, etc.). Final evaluation - An evaluation required whenever a STAR funded project is completed to determine how successful the project has been. An evaluation form will be provided by the City. First Source - A City program that requires certain companies that have received City economic development assistance to work with PED to place St. Paul residents in new jobs created as a result of the assistance. Forgivable loan - A loan for which repayment is not required (becomes a grant) if certain conditions are met. Funding cycle - The STAR Program is on an annual funding cycle, which means that applications are accepted and funds are awarded once each year. Grant - An award of funds for a project or program which does not have to be paid back to the STAR Program. Grantee - An entity that has been awarded a STAR grant. Job creation - Refers to jobs that are pledged to be created as a result of the award of STAft funds. STAR Draft Guidelines Page 27 February 25, 1998 98 �2 � STAR Draft Guidelines February 25, 1998 Leasehold improvements - Improvements to properry held by a lease. Leverage - Money or other resources committed to a project as a result of the receipt of STAR funds. Little Davis-Bacon - City requirements related to paying prevailing wage rates for work on a City-funded project. Living wage - A level of wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money will be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss (non-repayment) for STAR loans awarded to operate revolving loan programs. Loan origination fee - A processing fee that is charged to the borrower by the entity making the loan. Match - Money or other resources that are pledged to a STAFt project or program along with STAR funds. The STAR Program requires a minimum $1 for $1 match of other resources with STAR funds. Minnesota Business Assistance (Corporate welfare) - Laws approved by the Minnesota State Legislature that require cities to document job creation that occurs as a result of the award of public economic development assistance funds. Neighborhood fund - The fund that holds the sales tax proceeds designated for distribution through the Neighborhood STAR Program. Neighborhood STAR Board - A board of St. Paul residents, appointed by the Mayor and City Counci(, that reviews applications and makes funding recommendations for the award of Neighborhood STAR funds. Neighborhood STAR Program - The City program that awards loans and grants for neighborhood improvement projects, which is funded with 50% of the proceeds of the City's half-cent sales tax. Operating assessment - An extra fee charged by the City to property owners to pay for the maintenance and operation of public improvements that are considered above the standard that has been established for the City as a whole. PILOT (Payment in lieu of taxes) - An agreement to make a payment of some type to the City for a specified period of time when a property will be removed from the tax rolls. STAR DraR Guidelines Page 28 February 25, 1998 9� �28� STAR Draft Guidelines February 25, 1998 Planning Commission - A standing City commission of St. Paul residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. Prevai{ing wage standard - A schedu{e of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a program, through which funds are passed through an organization to an end user, either as a loan or grant, using criteria defined by the organization and approved by the City. Project - A one-time capital improvement to a particular property. Project management - The activity of overseeing the development and completion of a funded project or program. Project proforma - A realistic projection of income and expenses for a typical year of operation, and a balance sheet that reflects the post-loan closing conditions. Proposal - A STAR application for a project or program. Recourse loan - A loan whereby the borrower is held financially fiable to repay the loan, according to agreed upon terms and conditions. Reimbursement - Payment from the City to a STAR-funded organization for capital improvement costs incurred for completion of a STAR-funded project or program. Relocation requirement - State and Local requirements related to paying the relocation costs of residents or businesses moved as a result of a City-funded projecUprogram. Revolving loan program - A program established with STAR funds, that makes loans to homeowners or businesses for physical improvements. Loan repayments are used to make new loans for the same purpose. Risk rating - An estimate of the likelihood that a loan will be repaid, based on an analysis of the applicant's repayment capacity, capital position (equity), and the City's collateral position and conditions of loan approval. Scope of services - A budget, time line, and description of the activities that will be pertormed in the implementation of a STAR-funded project or program. STAR Draft Guidelines Page 29 February 25, 1998 9� i2 �' STAR Draft Guidelines February 25, 1998 - - - .�iz_.i��.: Small area plan - A plan for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds available through the Neighborhood STAR Program that are set aside to be awarded in small grants of $5000 to $2o,0�0, using a streamlined application and selection process. Sources and uses of funds - A listing of where aIl the money that will be spent on a project is coming from, which must equal the listing of all the uses the money for the project will be put to. Status reports - Periodic reports made to the City on the progress of S7AR-funded projects or programs. Sub-accounting system - An accounting system set up to track second-tier loans and grants made by organizations to homeowners or businesses through a program funded with STAR funds. Sweat equity - Work that a property owner performs to complete a capital improvement on his/her own property. The value of this work may be used as a partial match for STAR funds. Underwriting standards - Credit requirements (including financial ratios) that must be met before a loan can be approved. Standards provide support for sound credit administration and provide guidance for objective and consistent credit decisions based on sound credit analysis, appropriate controls and loan conditions, proper assessment and management of risk, and appropriate and timely loan servicing. Vendor Outreach Program - A program established by the City to ensure that a certain percentage of goods and services purchased by the City or by City-funded entities is purchased from small, minority-owned or women-owned businesses. STAR Draft Guidelines Page 30 February 25, 1998 � ;� INTER-DEPARTMENTAL MEMORANDUM DATE: March 4, 1998 TO; Council President Bostrom and Counci�members , � r, .Y FROM: Marcia Moermond, Poliry Analyst %�✓ , �;�'�'� � , City of Saint Paul City Council Research Cer�ter Room 310 City Hall Saint Paul, MN 55102 q � - j'�Q 612 266-8570 bw RE: Today's Agenda Item #18: Sales Tag Revitalization (STAR) Prograzn Proposed Guideline Amendments This memo reviews the policy changes adopted by the Council at its February 18 policy session, as well as the remaining proposed changes to the Neighborhood STAR program guidelines. OIJ'TSTANDING POLICY ISSUES: Applications for STAR loans be accepted at any time throughout the year. Page 9 of February 25 draft. See second page of Bob Hammer's memo on `STAR Financial Information" providing policy options for making application review a monthly or quarterly process. The Council acted in December of 1996 to set aside $550,000 to be used in 1997 and 1998 as a revolving loan and grant pool for applicants with tight deadlines who would benefit through quicker access to STAR funds. The $376,700 in allocations thus far are as follows: Right Step Acaclemy: $24,200 encumbered, loan agreement not closed. Home Styles (Home Co.J: $50,000 encumbered, loan agreement not closed. Sibley Plaza: $55,000 encumbered, loan agreement not closed, Old K-Man Project at Snelling � Energy Park Dr.: $225,000 loan and $22,500 grant allocated by Council, no encumbrances to date, loan agreement not closed. Seed Capitai Fund to be eliminated, making new program allocation goals: 60% loans and 4D% grants. Pages iii, 4, 16, 18 and 30 of February 25 draft. Annual Priorities Statement. Page 2 of February 25 draft. POLICY DIRECTIONS GIVEN: Elimination of pre-application process. All completed proposals will be considered for funding. Pages 10, 11, 14, IS, 16 and 34 of February 9 draft. The provision in the pre-appiication process pertaining to making applications available for community review has been moved into the regular application �� STAR loans less than $50,000 will not require a 1:1 match. Pages u, 5 and 19 of February 9 drafc. � . Pages u and 10 of February 9 draft. Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 25 of February 9 draft. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File 2 q�-la�' ! � NEIGHBORHOOD �ALES TA X REVITALIZATION (STAR) PROGRAM rth Street, Saint Paul, Minnesota 55102, or V � and Economic Development, 25 West Fo� caii 266-STAR (266-7827). � � � STAR Program Overview f� . � The Neighborhood Sales Tax Revitalization (STAR) Program awards grants and loans for physical improvement projects in Saint Paul neighborhoods. Key features include: * Program funding: 50 percent of the proceeds of sales tax. -cent * Applications for }oans may be submitte a any time. �� * Funds are awarded annually through a competitive app ication process for small and large grants, an'� wi(I�e ongoing for oans. '' STAR funds must be matched on a'f : basis w� other resources for loan amounts over $50,000 and all other loans an qrants. * STAR funds must be spent expected life of at least 7 rs. " Eligible applicants located in or doing * * * Small g with that have an � , or non-profit entity involvement and support will for loans and 40% for grants. number of small grants will be awarded (awards of )• un mg recommendations are made to the Mayor and City Councii or oans exceeding $100,000 and ALL grarrts, by the 15 member STAR Board appointed by the Mayor. Loans $100,000 and under may be approved by the Director of PED, upon STAR Board recommendation. STAR Dreft Guidelines Page ii 01 /29/98 • �� .� � � ►.._J TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives II. 1998 Expectations ill. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies � PART 2 - Eligibility I. Efigible Applicants 1f. Ineligible Applicants III. Eligible Areas IV. Eligible Activities V. Ineligible Activities PART 3 - Application I. Decision P If. Proposai lc III. Procedural IV. ,�,Applicatic� PART 4 I. II. I �1 • ; :.. . Page 1 ge 1 age 2 Page 3 Page 4 �age 5 �`"age 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 1 � Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 � 5- Loans, ants,-;��af and Leverage Requirements I. Am t of Funds Ailowed Per Proposal riteria for Small Grants Page 18 � verage Requirements Page 19 � , �# . Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 V. Project Development and Implementation Page 26 STAR Draft Guidelines Page iii Ot/29/98 q�-�a� C� r1 u � PART 6- Review and Evaluation I. Project Evafuation Ii. Annual Report to the City Council and Mayor III. Annuai Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS For STAR guidelines or appiications cal! 26&STAR (782�. For o er (266-6693), Jill Hughes (26&6650) or Paul Mordorski (26&-6`�3). STAR Draft Guidelines Page iv Page 28 Page 28 Page 28 Page 28 30 � a i Staff.� Bob �ammer d � ;;� Ot/29/98 q�- ia� i . PART 1 - Program Description * Program Purpose and Objectives '` 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * Gene�al Policies I. Program Purpose and Objectives Saint Paui neighborhoods are one of the C' m safes tax proceeds represent an e�raordin in our neighborhoods. The sales tax procee funding sources, are to be allocated throug economic and community development pr cts ii These very flexibie City funds should pr ._ sig economic impact. STAR funds sh�� E and investments and shouid b other available City resourc , Desired Outcomes: The Neighborhood S A. Economic de ,�.1. enha� tax base �bTiie local businesses and provide attractive viable neighborhood commercial areas �g pollution clean up 11. 1. rportant s the nity to revita invest the City's most flexibie rogram for capital _ I neighborhoods. ositive long term a ,, provement efforts s�a e ineligible for use of projects that: stabilize housing stock and(or increase market 2. p ide new housing that meets an identified need in the market 3. ' prove pubiic infrastructure and private green space especially if e projects are linked to related residential or commercial improvements r and City Council Expectations for STAR Proposals n:: _:�: � r rrvi7i7cs STAR Dreft Guidelines Page 1 p��yg�gg q�- ia� � IJT_'�!n!1/_T_T_� I�[-nlm�ni-nw "More likel�o Fund in 1998" ° Projects and programs that: � 1. increase or maintain the tax e as 2. are high quality, market dri and e 3. are part of a City approv `= lan or� identified unmet need '�" 4. are the result of col 5. are�nart of a bro� __ � _ -- - _ — �._o ...:.:.:......:.:�-.._.:_�...,i;,iLa " __ _ '• __ __ ' _ ___ _ i .�. " _ _ " _ • _ _ _ _ " ' _ _ _ ' �:i G.: a i� i a. � i n�� i� i�� o � 7. � rhood stability. are targeted to address with appropriate stakeholders. oach to improving in 1" Y�"d fewer projects. program, needs that affect more than one lenders, or a clear indication that private `°'�' "°` is n ssible or appropriate. Ci the percentage of city funds in the project is the least with rms so as to maximize leverage of other resources. Strategic e of Funds ales t ds are a very important resource for St. Paul neighborhood ent, particularly since state and federal funding is declining. It is critical e City be strategic in allocating these funds to achieve the greatest impact. Applicants shouid consider the foliowing: � • The STAR Program is an effort to fund capital projects that could not be done through existing City programs, and programs that fill gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations STAR Draft Guidelines Page 2 01/29198 �� .� u and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants shauid consider contracting with otfiers to provide technicai services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. � Applicants should look for opportunities to implement e neighborhood plans and strategies, such as small � propose improvements in conjunction wit other � improvements, such as residential stre ing. Community organizations are encour ed to pl r c development over a period of sever ars at, inc project funding can be guided by str rities for term improvement. IV. Pertormance-Based lncentives The STAR Program is designed with i� projects/programs. Key features i rates and pnncipal and interest r � me {ncentives are based on the tv of STR �� to rer� �f rafes or to e lower than market for the first year. � loans: "' `�"'"= te of up to 10% of the principal portion of the epayment amount as an incentive for repayment of �he Ci ided alI payments are made on time. Rebates will dit itional loan principal.: st ea � gs: Loans are deferred for 1 year from the date of ent with the City. This, for example, allows revoiving tors (RLO's) who begin to make sub-borrower loans m tely, to benefit by receiving payments from sub-borrowers to a year before the first city-loan payment is due. 1 �' u ,�j�'��ly��Fl\lf� \��f�1��1�\' _ • � •�� STAR Draft Guidetines Page 3 01 /29/98 i� . � � 3. Other Revofving toan Pronram (RLP) Incentives: a. Origination 4ee - Revolving Loan Operators (RLO) may collect from the sub-borrower, a ioan closing fee of $200 or 1'/z% of the principal amount of the loan, wfiichever is greater. This fee also covers any potential collect+on costs. b. Rate differential - Revolving Loan OQerators may request a loan from the STAR Program at a certain rate (example 5°!0) and propose to make loans to sub-borrowers a igher rate (example 8%). The RLO may keep t iffe e in interest rates. _ c. Grants used for loan pr s: Loan Operators may receive nt from ogram to � be used to operate a lo nterest pr e lo repayments will be hel an i st bearin �'he principal must continu ed to fund the g loan program. The RLO kee rest. l\ � L�� 1\ l� Yi il�l� l�l�� ly • � (50%} percent of the proceeds of the ha{f-cent sales tax, aiong with s corresponding interest earnings, are ded'+cated to investment in the neighborhoods (including the downtown residentia4 neighborhood and small businesses serving that residential population) of Saint Paul. � B. Available STAR funds for each funding cycle will include funds collected through June 30th, 1998. Succeeding cycies will include funds coAected from July 1 through June 30. Each cycle will be announced in December STAR Draft Guidelines Page 4 p��9/98 �� .� �J with an estimate of available funds. The estimated funds will be noted in the annual City budget as Neighborhood STAR program funds. C. Allocations 1. Sixty (60°10) percent of the neigfiborhood portion of sales tax proceeds shall be allocated to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and wiii buiid a{ong-term, growth fund source for the future. 2. Forty (40%) percent of fhe availabte funds shait be aUocafed to direct grants. j ,_.: �,: «_ � :. � �. � ... , . ,:., L� VI. and businesses. Innovative pi A. in allocating funding for geographic equity of p� General Policies Proposals must be neighborhood-based p representation to strengthen Saint Paul ne and actual problems, needs and opportun program, or strategy that results in capital proposals may be generated by neighbort B. Up to 15% of < accommodate C. � The sam �� heC D. or oans exc matc e with � F 'AR f�ds may ied with n d and address ceived Is can be a project, ' Saint Paul. These rs, organizations, age 6, I., II., III.) City to provide used for multi year funding to be submitted to the CIB Committee in the same year. ng $50 ,000 and ALL grants, saies tax funds shatl be �r resources on at least a 1:1 basis. :d to be of insufficient quaiity or impact will not be funding, even if funds are available. In the nt that Commun'ity Development Block Grants (CDBG) funds are a d to the STAR Program, areas of the city that are generaliy c ered eligible for CDBG funds, should receive their fair share of G funds as well as their fair share of STAR funds. PART 2 - Eligibility � * Eligible Applicants " Ineiigible Applicants * Eligible Areas STAR Draft Guidelines Page 5 pt/2g/g8 qg- � a� � * Eligible Activities � Ineligibie Activities t. II A. Any public, private, or non-profit entities, which are located within or do business within the city of St. Paul, except as identified in II. below. B. City departments and quasi-governmental entities are eligible hen in partnership with or supported by an established an xperi � d neighborhood group. Etigible Appiicants C. Individual businesses are eligibte to a funds, provided the business is: 1. opening up a business in St. I; or, 2. expanding the space occupie 3. creating new jobs. (Programs serving individual eligible.) Ineligibie Applicants A. Churches and religious � B. C. D. �� E. III. EI in STAR projects are also departments. rams serving individual proposals under $50,000. limits of the City of Saint Paul. IV Eliglble ACt include any physicai components of strategies, programs, and/or project hich strengthen and/or improve the neighborhoods of Saint Paul. Capit provements have an expected life of seven or more years. of eligible activities are: � Political parties and Federal, state, Individual elig ovements to residentiai, commercial and industrial property uch as rehabilitation, construction or other capital improvements. Examples include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. STAR Draft Guidehnes Page 6 01/29/98 q�- �a� � 2. The project must be in compliance with a41 legal requirements of the City, such as: � improvements. d. Prior to project implementation, all be obtained. Upon completi n of i applicant must have follo nd all applicable code, pe d lic Finally, the property m e prop have a current Certific f Oc a. The property must be appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the e. � applicable. � An applicant must have loan and be an � bank or the City. Funds will be rel receipt of docu tittle Davis- . followed a ool a elig ne sa rmits must m ts, the must meet, en nts. �� ins m ancy upo , if to repay if requesting a as determined by a dards). t basis upon > nses. �standards) must be B. Economic develo '�`nt eff such new housing, business development or ""sion,, . parkin velopment. The following are eligibie only w unde v, en a tial steps of a larger STAR -�`� capital pr ' at incl ntiai rehabilitation or '��-' flnstr - Ac sts including purchase options; emo ' ity rei d construction as it relates to a project; nce: isition of land or a building for clearance will only n aken when it is an initial step in a proposal which will N� C:� pital project; testing and soil remediation as part of a larger capital of developing parking facilities are eligible activities. If the g is to be privately owned, the STAR investment must be in the form of a loan, secured by a lien on the property. . Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative fighting, etc. � particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The Program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer STAR Dreft Guidelines Page 7 p��pg�gg i� ., � and water. Major public improvements should be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvemenfs, the STAR proposal must identify how this project area will privately pay for these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaily-binding and enforceable maintenance andior operation over the useful life � improvements proposed to be funded program. The most acceptable m thod operation of above-standard pub ' prc on the property taxes of those r iving 1 for and the improvements, though propos that co t pr n-pr x �' organizations to operate and ' tain ve-stan improvements will be conside nding upon (a 's judgement) the viability of the ' n and the enforceability of the legal agreement. � D. Direct project costs sp project. A minimum of construction costs for Definition: Direct out capitai project on the type of pr�i f� it7 of the capital m� r spent on hard e tho "" � are necessary to carry o comp ion. Examples are dependent being i�ilemented and may include: soil testing, environmental, legal, and inspection fees; � charges (must be in line with industry w_ �: per's " or project coordination fee that is appropriate to the d in line with industry standards; 5. of staff management that are clearly associated with th pletion of a capital project. 6. ons receiving the benefit of the projecUprogram are not igibie fo� developer's fee. (Examp/e: a business owner his/her business site.) h"cile Activities Any activity not of a capital (bricks and mortar) nature. � B. Planning or study activities. C. Use of STAR funds to develop a STAR proposal or to organize an entity to manage a STAR proposal. STAR Draft Guidelines Page 8 01/29/98 � �� .• r� LJ • E. F G. rrent City program such as the Houses to Homes Water Utility's Lead Pipe Replacement Program. are encouraged to coordinate or link proposed projects with � * * * D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. Refinancing existing debts, except when it results in job creation, or is part of a larger project. , Non-fixed improvements (Examp/e: fumiture, te/ephone systems). Working capital. H. General administrative expenses planning, development and admii maintenance costs. I. Costs accrued before 1 eligibie for sales tax fu J. Activities located out � K. Major public imp ��ei recreation cent ` tc. .�. L,��s�weat e ment ��:=;#R�;`'`� � =�„ _ : �tructi ver M. ithi the the management, and general are not repaving, sewer work, own labor and pertormance for t Paul Culturai District, as long as the sales tax is targeting that district. Application Procedure Decision Process Proposal Identification and Development Procedural Guidelines Application Contents STAR Draft Guidelines Page 9 Ot/29/98 �� . � � i. Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications #or grants are due approximately four to soc weeks after Orientation Workshop. C. D. E. F. G. � H. I. NOTE: T� Review of Small STAR Grant final a� by City Council approval. STAR Board, Planning Commission, final applications for large loans and Recommendations for funding subm Review by Mayor and City Council � and all grants. Final approval of funding Commitment letters be completed sen� Contracts followed all loan exceedi $100,000.00 and time line for actions to and time lines have been met. at the beginning of each funding cycle. I I. P ro`'�os� The ST lev is to im '- arly and a individuals A. COM �nti nd Development en s up front strategic thinking and planning at ali ' coli oration prior to the submission of applications. The ality of the applications qualitatively and technically. ipation of Councii, community groups, interested is expected in development of proposals. ITY GROUPS AND INDIVIDUALS INTERESTED IN STAR i- initiate program and project proposais addressing important iood and communiry issues. Indicate levei of comrrrunity Provide prioritized letters of recommendation rather than blanket for all proposals within community boundaries or service area. • B. CITY STAFF - Provide technical assistance to applicants, if requested, to help assure a complete and strong application. Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other STAR Draft Guidelines Page 10 o�iZy�98 �-�� 111. funding sources as a tool in accomplishing the City's goals. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycle. B. City staff will make availabie for interested parties copies of the applications for comment and review. C. City staff will organize a Small Grant Program work p e beginning of each cycle to provide program applica ' n infor prospective applicants. Attendance at the orientati rksh ly recommended. � D. Appiications may not be changed or applicanYs responsibility to thorough submission. However, applicants m information to the STAR Board in thi may be asked to consider a modifie� Board during its decision-makin ° nce submi � "` - �„ -. the proposal d to provide additional or applicants sd by the STAR IV. �pplication nts - Large Loans and Grants All applicatio must be submitted on the STAR application form and contain the fo ing information, including but not limited to: 3 A d iption of the proposal, including: Neighborhood problems or needs that the proposal addresses. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or elements. 4. Neighborhood impact and projected results. Level of neighborhood support and participation. STAR Dreft Guidelines Page 11 Ot/29/98 � , / • • � One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be p�iOfiU2@d. example: If an oiganization sends letters of suppo�t for 5 proposals, fhey must indicate lst choice, 2nd, etc. Description of neighbofiood participation used in proposal development. C. Applicant's management experience and capability, including past experience with similar programs. A board membership list t be provided, if applicable. D. Requested amount and type(s) of Sales fun , loan). Terms must meet the STAR program guid and g � � E. F. G. H. Fuliy developed budget inciuding 1. Construction estimates. 2. Level and source of private c 3. Sources and uses statement 4. All required financiai informa' sources of private lender fi _ including annual balan . . retums; and other i Time line for project Map indicating For p ^:fii:' boundaries. t proforma, financial data, ents, and/or tax rlete program guidelines must be such as the following must be ose who will receive loan/grant? or grant committee, and what is its structure? er, types of expertise) be mortgage on the properry or a"due on sale" 4. 5. be a residency requirement? be your underwriting criteria? iestions as appropriate may be added to the application form. If osal is funded, the guidelines must be approved as part of the with the Ciry. Conflict-of-interest policy of entity. � J. Evidence of site control at the time of application. Evidence the applicant has legal authority to carry out the project on the property. K. For proposals that would remove property from the tax rolls, a description STAR Draft Guidelines Page 12 o�iZ9iy8 I� _ � � of a proposed PILOT (payment in lieu of taxes) that wili replace the lost property tax revenue. L. if above-standard public improvements are proposed for funding, a description of the legally binding and enforceable pian for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a they will measured. N. Application fee: A non-refundable appli fe accompany application forms. A fee 0 wili be STAR Grant Program. ..��.:..�_.."'�' .=r"5":!n•:7 �� O. Appiications which are incomptete after the Applications must be f� completed. � ineligible for further consideration. be sufficiently developed to allow fo ' the proposal to the applicant. T development work is complete„ J E Applicant�hould fo PART . II. eighboi� `� Selection * Evaluatio * � :�__:_ � • - _. . the of how be retumed. : i�'omplete will be te or does not appear to STAR Board may return provided further � implement a project is limited. be spelled out in the STAR contract, of Applications Special Consideration = hborhood Sales Tax Revitalization (STAR) Board inted by the Mayor and approved by the City Councii. The 15 member board serves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. SeleCtion PrOCeSS - the selection process for grants will be competitive and the Board will consider the quality of the proposals. The number of applicants to may STAR Dreft Gwdelines Page 13 o��9i98 �, . • � l.J be funded is dependent on the size and quality of the proposais and the availability of funding. � � U :�_._.._.��=,a � A. Applications, upon staff. Applications� 1. Be accep�id staff proj `� n 3r� Add��nfi and summarized by by the AR Board. An estimate of City rt c_ wiil be added to the proposai. rovided to the Board by the a. � D Credit Committee will review the loan applications esponsibility, risk evaluation and appropriateness �= o tes, terms and conditions, and provide this info �'� n to the STAR Board to assist them in making ommendations to the Mayor and City Council. b- Planning Commission will review proposals for ompliance with the City's Comprehensive Plan and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informational purposes to aliow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. If other entities want to review and make comments on STAR Draft Guidelines Page 14 ovzsisa l� .! � applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board action. The applications, excluding financial attachments, will be available for review in central locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. 2. Be rejected by the STAR Board• a. Applications that are i plete date wi be ineligibie for furth onside on. w = b. Applications that are r ded remature � developed will be retur applicant. � _T_�f_nR_TJ_' _T_<T��TL' 1�](�I�l�l�l�t��l��l�ll�\ � j � STAR Draft Guidelines Page 15 ovzsisa /• • �^: ..,.......�,....:,��.,:.: __ ' _ ' __ _'" ____ ___ ' __ ', r_' B. The STAR Board will strive to ident the context of the STAR Program g C. The STAR Board will also consider Commission comments, and cre ' funding recommendations to � D. The Mayor will review t ec Committee and Plann' Cor recommendations _ e City,. E. The City C resolution, a eir bu� � tll. Eva c� of eligibili � Propo Sales T B. Proaos possible Planning and make e STAR Board, CIB , and forward his 's recommendations and, by AR project proposals and approve 3: Proposals will be reviewed for the foliowing criteria. City Council priorities for the use of the Neighborhood the minimum leveraging ratio. (See "Leverage", Part 5.11) is an eligible program activity. (See "Eligible and Ineligible sections - Part 2.IV and � . Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for � the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small STAR Draft Guidelines Page 16 01/29/98 • �� . � � • IV F G. .: 1 0 Special Consideration: Proposals consideration during the selecti � A. Proposal has the foilowing: 1. a positive impact on tax 2. a positive impact on 3. a positive impact side 4. a positive impac job c ti for public fun� pent o b-c area plan, capital allocation policy or adopted City ordinances and policies. Proposal is financially feasible_ Requested STAR funds together with other project resources are adequate to complete the proposed project. Managing organization has the capability to successfully manage and implement the project or program. Proposal effectively addresses a previous identif erwise clearly documented neighborhood need or go . Proposai was developed with and is neighborhood based. to Note: To avoid number of iQbs. more favorable �ds; and/or, requires accountability �-co ng of jo reation, please take the total in li ies, and pro-rate the number of :e AR dollars in the project. broad strategy for neighborhood C. � ci tiy concentrated within an identified geographic area visual or economic impact. or feasibility analysis indicates a high probability of N� orhood support is documented—an appropriate mix of residents, erty owners and/or business people relevant to the project were ncluded in the planning, development and implementation of the proposal. � F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. STAR Dreft Guidelines Page 17 o�izy�98 �� _! n u � U G H. J. Proposal is recommended in a District Council Comprehensive Pian, in an adopted smal are� similar neighborhood planning process. K. Proposal is in reaction to, or anticipa of, a condemnation for eminent domain en improvements. PART 5- Loans, Grants, Seed Requirements * Amoant of Funds ANowe Small Grant * Leverage * Operating a I * Loan Standa * P��iect De�� I. Proposal leverages additional funds or resources which exceed the required match. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. ►c� no � a (RLP) another Leverage for ic Per Proposal and Criteria for Small toan/grant request amounts for the regular mum for the regular program is greater than $20,000. vi ual business requests must be for $50,000 or more. (See C for more details.) Request for funds of $20,000 or less will to the Small STAR Grant program. � all STAR Grant Program - requests for amounts of $20,000 or less will be in the form of a grant. The application and selection process will be reduced. Funding approvai may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Small STAR Grant Program is $20,000. STAR Draft Guidelines Page 18 0'I /29l98 `j • � � 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a project's selection and approvai, a standardized contract will be signed with the City. I I A. A minimum match of one {$1) privafe doilar for every one {$1}�TAR doilar is required for loans that exceed $50,400.00 and all grants. Leverage Requirements B. County, Private, State and Federal fun be C. Priority will be given to projects matc with such as CDBG, TIF, CIB, and HRA f ca unless the City funds are loans. Ci considered an eligible match and forgi D. Applicants are encouraged to expenses with outside private donations, etc. and to use tl� � administration and marke ' � funded with non-STAR ars operating funds of t orga� E. Matching fu program in; F i.e., t management grants, cash �h. Staff e �rogram must be as a match. General an eligible match. to completing the project or may include: resources such as private expenditures for � idential physical improvements, contributions or within the neighborhood, foundation and and local lender commitments or operating nts estimated over the useful life of the improvements. 2. I ontributions can include: in-kind services from r s and businesses such as personnel, professional services, e space, project suppiies, volunteer labor, and sweat equity for ysical improvements. The value of sweat equity and/or volunteer may not exceed 30% of the total match. � � �ieligibie matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appiicants such as aiready existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. STAR Draft Guitlelines Page 19 ; be used � which will b id are loan are not eligible. Ot/29/98 ��a� � (Higher sweat equity matches will be considered for the Small Grant program.) 4. General operating expenses. 5. Any donation not direcUy related to the STAR project 6. Any forgivable loans and City CDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9. Any improvements made prior to application. H. Operating Assessments: If STAR operating assessment, no funding of the matching operating assessn Under no circumstances will any The STAR Board may, at their matching contributions on a cz � K. Exceptions to the match Board in highly unusual, an urgent need or disa�te L. When interim fin �is considered mat d whe �� exampie: r a �, n a hou� ��..,•..�.�H��. �,.-,.,.��..�.�.,. � with STAR funds. approval of other by the STAR I is in response to �', the gr t portion of the project will be vate s replace the loan amount. For ,000; appraised value after rehab sidy of $30,000. The STAR program and interim construction financing of dollars of $60,000 are repaid to the STAR rty, and is considered a match to the $30,000 � � STAR Draft Gwdelines Page 20 o�nsiea � � � � � l ��1�1�1��f��f��l�l��1�1��wl��l!t_l�l��l\�l�y��1�t�Y�(��'�/1�[�I�l�lf� � [��11�1��t��l�l�� ' • • • . • • _ _ _ " _ _ ' _ _ � _ _ _ _ � _ _ _ ' ' ' ' _ � � Revolving Loan Program: App{ic� program for funds to operate a revc STAR funds to be recycled for 3 or contract with the city. 1. The City and the STAR loan the recipient to operate a re� 2. The STAR loan recioient tF (RLO)—makes capital i 3. Description of term sent to a servicin ncy heid in an intere earin i principal, whic� ' ust b se to the RLO ' ditio sut used by t�� O a �eded 1: as pai to G! STAR Draft Guidelines . "� g 4 t�, • � ..�i'u.t�.r �- a contract authorizing r lo ayments may be . The payments are ed for the RLO. The if improvements, is available foans. Tfie in#erest may be there is no charge of interest or b. and 3: monthly interest and/or principal payments STAR foan is paid to the City during the 2nd and 3r rincipa{ payments to the city may be deferred as gree pon by the RLO and City staff. r 4: principal and interest payments for the RLO's STAR • n are based on the amortization schedule for the entire TAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthly basis firom year 4 until the ioan is repaid to the City. Applicants may request a longer period of time to revolve the STAR funds. The City will review the condition of the f2L0's files, sub- borrower loans, and repayment history prior to approval of an additional term. Risky loans: If a RLO desires to administer a loan psogram of moderate risk or a mix of high and low risk loans, an application Page 21 01/29198 q�- ia� � shouid be considered for a STAR grant or a combination Ioanlgrant to help the RLO mitigate the risk of non-payment. Both grant and foan funds can be loaned to sub-borrowers through the revolving loan program (RLP). The grant funds may be used to provide a cushion against default of sub-borrowers. If a RLO desires to administer a loan program where repaymen ability of the borrower is highly questionable or doubtF en an application should be made for a STAR gran�, ��_,�+.+�...� ��f�l�]-S-S�T �l�ll>\LS _ _ " _ _ _ _ _ _ a _ _ _ _ _ _ _ __ _ _ _ _ _ •. __'_' ' ' _ _' � '_ ' " __ '_ ___'" ' _'__ ' _ "'_ _' _ _ '" "'__ ' __ � '_ _ _ � STAR Draft Guidelines Page 22 ov29iy8 !f , � -- - ---- - -- - - --- - - -- - - � Loan Stan dS (The financial incentive to encourage repayment of STAR foans are lis in Part 1, IV, on Page 2.) he goal e STAR ioan program is to earn 5°lo interest over iime. However, may propose rates and terms that best suit their project. A. {nterest rates and terms wiA be proposed by applicants. Rates and � terms may be modified after financial analysis af the appiicanYs request by the PED Credit Committee. Results of that analys+s are foswarded to the STAR Board, which makes �ecommendations for City Council action. STAR Draft Guidelines Page 23 olnsrsa ��- �a� i B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City wi(I be listed on conditiona( morkgages and conditional guarantees to be signed by the sub-borrawer and the RLO. This provides some protection f xpayer dollars in the event that the Rt0 aoes�►ut of iness. . ia a.ii.�:i.��:rt��i�ia��d�s�a��i:1-�iw � �: a loan is in default when more than 10°l0 of the amount due to y is delinquent. On projects: the following action wifl be taken: a. City staff works with the borrower on a correction plan or a work-out pian for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process a�d collection of the borrower's STAR loan. STAR Draft Guidelines Page 24 Ot/29/98 r. _ � � c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: 3. � . (1) coliection endeavors; (2) workout pians; (3) foreclosure procedures Other remedies for default and/or poor Qe a. The entity must demonstrate how the the default have been remedied: sta# experience, callaborat+on b. The entity may be disqu program. from �that led to staff d lender, et �,in the ST/� D. City origination and servicing fees 1. Individual payments for single revoiving loan program (RLP) City. Sub-borrower loans init� will be originated and cio operator (RLO). 2. Servicing fees. a. Loans andx ants o ir single pr�cts) w e i of th R a nt, b b. Th _ s se ina aaE all payments for rocessed through the :d th • lving loan programs the Re � n Program the City (programs or >ing fee equal ta 1'/z% � any disbursements. will charge a fee per loan nonth�y payment may be assessed 15 days delinquent. d. er parry assumes the mortgage, a 1'/2°lo assumption outstanding balance will be charged (assumption w� requent{y and must be approved by the City). c. - gram portfoiio: fn order to address loan needs which c e met through standard financia( institution lending p grams, the STAR Program is alfowed up to a 20% loss rate. e City's risk rating system will be used to help assure that the rogram operates within this range. Loan toss percentage - Revolving Loan Programs: Revoiving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principa! payments. H. Risk rating: All loans witl be risk-rated, utilizing basic fundamentals of STAR Draft Guidelines Page 25 ov29iye /� _� � �� sound credit. These fiundamentals include: an evaluation of the borrower's overall capita! position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvai/servicing. Additionally, considerabie weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The foilowing categories are used to assign a risk rating: Risk Ratina ACCEPTABLE SUBSTANDARD DOU6TFUL LOSS � A portfolio rating no {ower than a� maintain the 20% ioan ioss levei a nonrecourse loans would drop the requirement, these loans are not a In most instances, organizatiot� shouid apply to the grant pso�,� Because # ( rating is nece � '°° o � STAR program. Since elow the 20% foan program. urse loan the specific quality of individual � foan program, certain standards be set to obtain a particular risk rating. Groups that �anderwriting standards wil{ receive a better risk �RLP) finai applications shouid be �iled and quantifiable underwriting sta�dards. by VI. � ct Dev nt and Implementation Upon s n by the City Council, the STAR project appiicant wifi: 1. eive a letter of commitment which specifies a period of time ring which the applicant must refine its projeet or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved applicant wili have 6 months from the date of City Council approval to enter in to a City STAf2 agreement. Failure to execute an agreement will result in a canceilation of the City commitment. STAR Dreft Guidelines Page 26 01/29/98 t� �, � � B. implementation of the contract 1"he contract will be entered into between the City of St. Paul and the se{ected applicant and must contain: 1. A Scope of Services to be performed by aif parties; C 2. A private match section; 3. A budget section outlining all funding sources; 4. An implementation time iine; 5. Appropriate Iiability insurance which insures the City 6. Conflict-of interest statements; and 7. Adherence to Federal, State and L cal reg Poficies pertaining to the use of f suc standards, relocation requirem , aifirma ' vendor programs, the First So e pi welfare requirements. The n of commercial) determines whic Staff wifl hold a compliance me , contract to identify regulations The contract will be signed in Sales 7ax F 1. Sa{es Paul; applicabie. ng wage s apply. - �, to impiementation of the �project activity. provided on a reimbursement d pay , made upan completion of the project of the ect report and evaluation. At the time of ail activities contained in the agreement or upon agreement, any remaining project fund balances he STAR Fund. 3. ogra � ch as a revolving loan fund, is established by the using grant doliars, repayments accrue to the applicant f the program for which the grant was approved. If ving program is established by an applicant using loan ars, the loan must be repaid in full. Any excess funds accrue to applicant's account and the program operator is responsible for andling delinquencies of loans they have originated. As an incentive for fiscal responsibifity, a percentage of the principal portion of City loan repayments 10°!o will be credited to the borrower annually. The remaining 90% is retumed to the City's Sales Tax Fund for reinvestment in capital projects. i D. Progress: Projects are expeeted to be compieted within a maximum two- year time frame as approved by the City Council. Proposals are setected STAR nraR Guitlelines Page 27 01/29/98 �i - � � � based on certain criteria and may not be significantly changed during project impiementation. PART 6- Review and Evatuation * Pra}ect Evaluation * Annual Report to the City Councii and Mayor * Annual Review of Priorities * Audits and Quality Control � I. Project Evaluation A. Status reports will be generated for ongoing monitoring process. The re� status of match commitments, and pr project outcomes (as identified in the for timefy adjustment of individual p wiN monitor and report on individual� with contract. 6. A final evaluation of to which the project measured against e� the STAR Progra finai reimburse {I. � to date, their locations, and costs. program. supporting priorities. � �T meeting e oted ition). This wil! allow ary. Project managers s and compliance o determine the extent ct success wiN be and the overall objectives of must be received before the f and Mayor �d each year and shouid include: of the program process and suggested revisions. eview of Priorities for the use of safes tax funds in our neighborhoods should be reviewed n annuai basis. STRR Board and City StafF shall conduct a review and forward any comments and recommendatians to ail interested parties. ! lV. Audits and Quatity Control A. The City will establish a monitoring and contro4 system which ensures that STAR Draft Guidelines Page 28 Ot/29/98 a�� a� i loan repayments are made under the terms of each projecYs agreements. 1. It wiil be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibifity and ongoing program compliance. 2. Reports on revoiving Ioan programs will be periodically provided to the funded entities to assist +n their monitoring of their programs finances. � �� L�J STAR Draft Guidelines Page 29 ov2sisa • j� .� n Acronyms APPENDIX: ACRONYMS AND DEFINITIONS CDBG Community Development Biock Grant, a Federai grant to cities for community devefopment activities that provide assistance primarily to low- an moderate- income persons. , CIB Capital Improvesnent Budget, the City's improvements. HOME Federal funds that assist development of HRA PED RLO � (2LP Housing and Redevelopment Authority, t redevelopment activities on behalf of the Planning and Economic Development which administers the STAR proqr Revolving loan operator, an Revolving loan business im�rc STAR Sales Tax - ... � that unde �� '�� are the City Councii). City government, loan program. �ans for housing or to make new loans. TIF ��"�: _ eme , a me �" '�m whereby the City can capture the "rr�� taxes �� ,, by new development to help pay the costs (such as �r� �;t� inf , y impr r soil clean-up) necessary for that development to oc "' _ - Costs for staff, o�ce space, suppiies, etc. necessary to run �,�i��, "° d� retationship - An entity or person has an adverse lending re ith the City if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. � Affirmative action - A City policy that requires a plan for recruitment of minority employees and the use of minority-owned businesses. STAR Draft Guidelines Page 30 Oti29i98 �, .. �� Ailocation goals - The percentages established by the STAR program for a specific distribution of STAR funds ta loans, grants, smafl grants, and seed capitaf loans. Amortization schedule - A schedule for payi�g back a loan fhrough instaflment payments. Annua4 report - 7he report that is done once a year on the Neighborhood STRR Program. Applicant - An entiiy appfying for a loan and/or grant Audit - An examination of an organization's record compliance with financial and program standards. Borrower - A person or entity that takes out a loa Capitai improvement - A physical improvement o Certificate of occupancy - A certificate issue E building has met all City reguirements tor I, � City comprehensive plan - The set lan to guide the growth and developme of the addressing areas such as land �cono� housing. Collaterai �roperty shouid ` er de Commitmey' � STAR funds t :� the signing Com 1s�ance meetinc aw d STAR funds C� nding. _ _ ct - A lea the are increases its value. City � ncv of �s that a use. by the City Council transportation, parks, and to ensure recovery of a loan, A le ' g an applicant of the City's intention to award ', sub� eting certain stipulations and/or standards, and ' h th for use of the funds. �g held between City staff and entities that have been City requirements that must be met as a condition of it between the City and the recipient of STAR funds, that must be met in order for the recipient to receive STAR a scope of work. Credit Committee - A committee of staff from the Department of Pianning and � Economic Development that reviews financial analyses of proposed foans and grants. The Credit Committee financial and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. STAR Draft Guidelines Page 31 p��g�gg ��a� � � Credit risk - An analysis of the probability that a loan will be repaid. Cuitural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to pro}eets that benefit the downtown culturaf district). Defe�red toan - A loan where repayment is delayed unti4 some future time. For exampfe, interest and principai on ail STAR ioans are defierred fior one ye m the date of the contract with the City. � District council plan - An adopted plan for one of districts; considered part of the City's Comprehensi Eminent domain - The authority of a private property for public use. Entity - An organization that has been IegaAy State of Minnesota (such as a company, non- Final evaluation - An evaluation compieted to determine how succ be provided by the City. First Source - A City program economic development assist< jobs created as a resuit of th Forgiva ` ; �' n - A I certain`��"" `"--� ` are Funding cyc TAR application nd Gran n award of to t_ TAR Proaram. ST i through the councif, etc.). �d project is evaluation form will that have received Ciry place St. Paui residents in new not required (becomes a grant) if � on an annuaf funding cycie, which means that are awarded once each year. project or program which does not have to be paid back - An entity t has been awarded a STAR grant. to jobs that are pledged to be created as a resuft of the award of Leasehoid improvements - Improvements to property heid by a lease. � Leverage - Money or other resources committed to a project as a resuft of the receipt of STAR funds. STAR Dreft Guidefines Page 32 01/29/98 , ♦ • • � � Little Davis-Bacon - City requicements refated to paying prevailing wage rates fior work on a City-funded project. Living wage - A ievel ofi wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money wifl be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss loans awarded to operate revolving loan programs. - Loan origination fee - A processing fee that is making the loan. Match - Money or other resources that are pledgE with STAR funds. The STAR Program requires a resources with STAR funds. Minnesota Business Assistance �Cor� Minnesota State Legis{ature that require a result of the award of public economi� Neighborhood fund - The fund distribution through the Neighbo Neighborhood STAR and City C�,�ncil, that award of,�e'i�iborhoo City's for fot STAR �� ': r � ,�� > ' ' -� � = -� " �� r� � - . . - . . � �-�E�� _ . . �. . . . - d by the that occurs as designated for dents, appointed by the Mayor funding recommendations for the City program that awards loans and grants for thich is funded with 50% of the proceeds of the �g assessm ra fee charged by the City to property owners to pay maintenance a ration of public improvements that are considered above ndard that has en established for the City as a whole. �u of taxes) - An agreement to make a payment of some type to period of time when a property wiii be removed from the tax rolls. � Plarfri` ommission - A standing City commission of St. Paui residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. STAR Dreft Guidelines Page 33 Q�/2g/gg `t� ` ��' � � Prevailing wage standard - A schedule of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a pro , t gh which funds are passed tfirough an organization to an end us r, eithe n or grant, using criteria defined by the organization and approv the Project - A one-time capital improvement to a Project management - The activity of funded project or program. Project proforma - A realistic projection of operation, and a balance sheet that reflects � . a ,g9x�t-� �• • _ a typical year of Proposal - A STAR appiication for a Recourse loan - A loan whereby loan, according to agreed upon� "" and the C' a liable to repay the Reimbursement - Payment improveme�t costs incur relocation�"" " �,. � project/progr" Revolv� oan pr to ho . " wners or' to , e new loans �-funded organization ior capital 'AR-funded project or program. nd Local requirements related to paying the � sses moved as a resuft of a City-funded �gram established with STAR funds, that makes loans r physicai improvements. Loan repayments are used purpose. ing - An es � ate of the likelihood that a loan will be repaid, based on an of the a anYs repayment capacity, capital position (equity), and the City's nd conditions of loan approvai. Scoj�c"f�services - A budget, time line, and description of the activities that will be performed in the impiementation of a STAR-funded project or program. � STAR �raR Guidelfnes Page 34 p�Mgigg ��- la� Smalt area p4an - A p{an for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds Neighborhood STAR Program that are set aside to b to $20,000, using a streamlined application and se1 Sources and uses of funds - A listing of where project is coming from, which must equal the list project will be put to. Status reports - Periodic reports made to tfie projects or programs. � Sub-accounting system - An a� � grants made by organizations to with STAR funds. Sweat equity - Work that a pr on his/her own property. Th STAR fund�, _ met befoi administr on sound and mar� � Outreach percentage is purchase . of of y that wi uses the STAR-funded md-tierloans and a program funded �o complete a capital improvement be used as a partial match for requirements (including financial ratios) that must be be Standards provide support for sound credit ide g r objective and consistent credit decisions based pro controls and loan conditions, proper assessment appropriate and timely loan servicing. �- A program established by the City to ensure that a is and services purchased by the City or by City-funded small, minority-owned or women-owned businesses. STAR Otaft Guidelines Page 35 ovzersa q� - �as Re: Feedback on the 1998 Star Board Recommendations February 18, 1998 The listing of six recommendations are more in line with the actual capacities of many communities and proposed projects. My concern lies with the chain of command of loans of $100,000 or less being approved by the Director of PED. Doesn`t the City Council currently have some control concerning the recommendations made by the STAR Board? Why would the balance that the City Council provides be eliminated and left to the discretion of the Director of PED? How is the Mayor involved in the selection process? Additional comments: Community feedback that I have gotten from my community is that there appears (rightfully or not) to be partisan politics at work in the selection process. Should a community be penalized because they are not as active and perhaps unable to pursue the funding that is available? Could better outreach and/or more targeted help be given to those neighborhoods who demonstrate a need for assistance? Neighborhoods often feel pitted against each other for the limited funding. Is there a way that grant and loan money could be equally distributed between all of the District Councils? If so, the amount could be allowed to carry over for use for not more than three years whereby it could then go back into the general pool for distribution. As it now stands, those communities most able to write the best proposals get the money. In the local communities, there is often competition for the limited monies available. It would also be helpful if all STAR proposals go through the District Council process so that the best overall proposals for each community could go forward. This method would be an asset in community building rather than fostering the current climate of competition. Is there a method for "borderline" projects so that those communities who share a border could share their monies as well? All loan packages should be forwarded with the input (and/or approval) of each District Council. Urilizing District Councils in this way would incorporate a broader community view, and again, warking in tandem with other community non-profit organizations helps build community. Are all current applicarions chosen only on merit? All loan packages should be based on sound business practices should reflect industry standards and math formulas that have no basis in race, gender, age, etc. When the package is biind, the most sound proposals will succeed. Submitted by Carol M. Neumann 694 Oakdale Avenue St. Paul, MN 55107 � i• .• OL`TLiNE OF STATEMENT OF PAUL GILLTLAND, CHAIR OF T_HE CAPSTAL IPfPkOV'EiiENT BUBGET CQMMTTTEE, TO THE ST. PAUL CI'LY COUNCI� POLICY SES3ION OI3 "5TAR". FEBRUARY 18, 1998 W�AT ISSUES MOST NEED TO BE ADDRESSED AS kiE SEEK TO IMPROVE 'tHE PROCESS FOR REVIEFf AND t3SE OF THF' PROCEEDS OF TI�E SALES TAX? 1. NEED TO FOLLOW "PYRAMID" FUNDING STRATEGY AND THRERF'ORE NEED TO WORK TOWARD A"UNZFZED" REVIEW PROCESS. Once a project is agreed upon, the most restrictive funding should always be used first, the 2east restrictive last. Blending of �unding sources maximizes the opportunity to complete a project as intended rather than be baund by regulations. The addition of the 5ales Tax as a funding source, with its minimal "strings" (capital projects) should enhance this mix of sources. To date, due to our own internal complication and zeal for regulation, STAR has nat reaiized this potential. Due to its sepa- rate process, there hes been little opportunity to view STAFt together with CIB and CDHG as part o£ a"pyramid" oi €und sources. 2. THE ISSUE IS NOT THE STAR BOARD OR THE FUIdDING SOL312CE IT'SELF, BUT PED "iNTERNALIZATIUN" OF FUIYDING ALLOCATTON I1V GENERAL. 5ome of what is perceived to be happening with STAR (too much PED control) has adready nappened with CD3G and HOI�E funds uncier a process called "Capitol City Development Program (CCDP)" Part of the uni£ication of a review process for housing and economic development funding invoives cztizen review and "opening up" (or elimination) of CCDP. tJniess this question is resolved before 3anuary of 1499, we will be facefl witke three tracks far neighborhood housing and economic development fun- ding; STAR, CCDP and the regular CIBjCDBG two-year cycie. 3. I3EED TO RETURN TO THE "STRATEGIC" GOAL OF STAR. One of the ironies of the STAR process is how quiclky the "stategic" emphasis has disappeared. 8everal projects which were clearly identi£ied in adop- ted neighborhood plans and strategies but were deemed as multi-year or possibly nat ready to proceed immediately were screened out in the pre-agp staqe. In addition, several projects could not proceed be- eause the grant portion was not funded, even though the laan partion was, pr the issue of loan recourse surfaced. This attests to the inflexibility and short-sightednass of the STAR process. 4. WHEN THE REVTEWJFUi3DIi�tG PROCE35 IS VERTICAL, CO23TR01:. IS CENTRALIZED. One of the main differences between the CIB and STAR review process is the relationship between departments, support staff and the citizen review body. STAR is entirely vertical, with PEII drafting the guidelies, staffing the committee, rating the projects, negotiating contracts, handiing reimbursements and then evaluating the programs. i�ith CIB, the Budyet Uffice staffs the pro�ess, while departments staff projects. Neighborhoods relate to both, but for dif£erent reasons. Tne separation of roles nas been a positive means af preventing centralized control and lack of citizen access. STATEMEIdT Or PAUL GILLILAND FEBRUARY 18, 1998 PA�E 2 5. AS LONG AS PED IS THE "SOURCE," LOANS WILL BE "PED" LOANS. Aside from the controversial issue o£ the ioan/grant mix is the question of the "use" of ioan tunds. Many neighbrohoods, through CDCs or other groups have the ability (and 'nands-on knowiedge oY community needs) to operate smail housing and commercial loan programs. Yet, because the intent of these projects is to generate revolving "loan" funds in the neighbrood, PED views the initial funding of them as "grants." Access to loan funds should be independent of PED control and neighborhoods should be allowed to operate loan programs using the loan portion of the sales tax program. 6. LOANS TO INDIVIDUAL BUSINESSES. The provision requiring indivi- dual businesses seeking loans or grants to partner with a comnunity group was quietly dropped two years ago. It should be reinstated. Sf sales tax funds are to be loaned or provided to an individual busi- ness, it shauld be done as part of a"stra£egy" and coordinated at some identi£ied 1eve1 with a CDC, District Council, business associa- tion or other more broadly-based organization. 7. SIMFLIFY - AT ALL LEVELS. The evolution of the forms and con- tracts used in the STAR program is truly a study in beauraaracy, The applicatian forms evolved from the former NPP program and are Zong and redundant. A cover-sheet, three page narrativs and budget page should suffice. In terms of contracts, the program started with model federal pragram contracts, which are among the most complex. 5implify. Drastically. 8. REVI5IT THE ISSUE OF PROJECT ADMZNISTRATION OR "50FT COS1S." 6btain an opinion from a group of outside attorneys and bond experts on the question of maximum al2owed costs associated with the capita2 activities. Then act on it and use it. ��- ia� Cfty of Saint Paul Cfty Council Research Center Room 31� City Hall Saint Paul, MN 55102 612 266-857� INTER-DEPARTMENTAL MEMORANDUM DATE: February 18, 1998 TO: Council President Bostrom and ,,� Councilmembers FROM: Marcia Moermond, Poliry Analyst �� SUBJECT: Sales Tax Revitalization (STAR) Program Proposed Guideline Amendments for Today's Policy Session This memo reviews the proposed changes to the Neighborhood STAR program guidelines. It also provides aiternative language for amendments about which some Councilmembers and Aides have expressed reservations. The amendments are listed below in the order they appear in the handout titled "1998 STAR Board Recommendations" which is in the Council packet. The pages refer to the Neighborhood STAR Program Guidelines with the proposed amendments which is also in the Council packet. �. � i Ii { 'i �. /'!! / "1 � �' / • i!L . ! " �- �• � Applications for STAR loans be accepted at any time throughout the year. Pages ii, 1 and �-�'� 10. Page I language.• Application for loans may be submitted at any time. Alternate language.� Application for loans may be submitted on a competitive basis quarterly. Page IO language: I. B. Applications for large loans are open all year... Alternate language.• Applications for large loans are open on a quarterly basis... /� lElimination of pre-application process. All completed proposals will be considered for �� funding. Pages 10, 11, 14, 15, 16 and 34. Notably, on page 16 ihe provision below is deleted as it is a pan of the pre-application process. This may have the effect of dampening citizen participation in the STAR Board application review process. Alternatively, this provision may be moved to precede point B direaly below where is appeazs currently, thus causing a re-lettering of the points it pushes lower (B through F, instead of B through E). A. 3. d. , � __'_ _' '_'A� o'T' e n� � • i• 1 t f n Tt a � vi n c - � --''- -' '- � �' - L'_�__•_7 _ -lt f •t 1 t t �Yy - - b --- -- --- — za '.u�c� 1�na.�.��.ur.w� .� T�.iva.i.s�cte.w ( -S ) STAR loans less than $50,000 wili not require a 1:1 match. Pages u, 5 and 19. �� Seed Capital Fund to be eliminated, making new program aliocation goals: 60% loans and 40% grants. Pages u, ui, 5, 18, 20, 21 and 35. � Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. Pages ii and 10. Page 101anguagr. I. F. Review by Mayor and City Council for all loans exceeding $100,000.00 and all grants. � Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 26. Other amendmen*c tn thP g�.�dol��PC• Annual Priorities Statement. Pages 1 and 2. Staf jrevie�rn� of application (suggested, not required) 2 weeks prior to deadtine. Page 13. Return of incomplete applications after deadline. Page 13. Review and information sharing on applications. Pages 15 and 16. Slight rewording and moving of text from page 15 to 16. Referral of grant applications of $20,000 or less to Small STAR Grant Program. Pages 18 and 19. The proposed deletion of the following provision from page 19 does not appear to be consistent with text on page 18. Page 18 I. A. 2. ...Requests for funds of $20,000 or less will go to the Small STAR Grant program. - : ' - .. , Pi�I.l��f-f ��iqi»�i�Jnf-��w) ��_��rn�� Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File ��- �a� City of Saint Paul City Council Research Center Room 310 City Hall Saint Paul, MN 55102 612 286-8570 INTER-DEPARTMENTAL MEMORANDUM DATE: February 10, 1998 TO: Council President Bostrom and Councilmembers ` , FROM: Marcia Moermond, Policy Analyst (� �d� SUBJECT: Sa1es Tax Revitalization (STAR) Prograzn Repon and Written Commentary for Tomorrow's Policy Session Attached is a report on the 1995 and 1496 projects of the STAR fund just received from the print shop. This report was prepared by an intem for the Department of Planning and Economic Development. It may be considered as supplementazy or background reading for the policy session tomorrow. It provides a good summary or profile of all of the projects during the program's first two years of funding. Also attached is the only correspondence I have receaved thus far on the $TAR program policy session. Based on some of the briefings that have been conducted preparatory to the policy session, I will be providing Councilmembers with policy options and guideline amendment language for the STAR board recommendation that applications for STAR loans be accepted (and processed) at any time throughout the year. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File Fi��= + -+� � ± From: To: Date: Subject: East Side N Dev <HN6244@handsnet.org> miscunix.smtp("maraa.mcertnond@ci.saint-paul.mn. us... 2/91981:37pm Proposed STAR Guideiines revisions Ms. Meorman: My name is Rich Malloy of East Side Neighborhood Devebpment Company and the Payne Arcade Area Business Association on Payne Avenue and Arcade Street. f think the STAR board recommendations are very good however, 1 have a few questions: The summary states that "Under the 12evolving Laan Progrem, the recourse wilf be to the end borrowef'. Would this be effective retroactive�y? if the recourse is to the e�d borzower, then who has authority over loan approwal? Under the eurrerrt system, if the GDC makes a ioan then recourse is to the CDC. It the rules change so the recourse is to the end borrower (e.g. a husiness owner) then can a CDC still approve a loan? As a CDC person, I like this rule, but will PED? Further, 'rf PED must be the fina4 approving authority vrith their existing guidelines and underwriting criteria , then what we have is a program that only approves loans that a bank would do. I thought the purpose of economic development loan programs was to provide financing for that portion of a loan a bank won't do. So, the question becomes, is PED going to take on more risky types of veMures? The 6ottom line is that given the approval process for a STAR loan, it is much easier for a business go to the bank. Mail Sent: February 9, 1998 1125 am PST Item: R012oY3 q8 � l�� • , � J � �. W h i G � ! U A ' E ' ^J z, O L 0. 0. N `v � 9 Q e 0 N 0. � � U O N � 0 � d O a m A N � « � � 'a �� 4 N o a C N � G � . 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G s` U G h N R � a. a T j y �N � N s � ;�¢ s y � Oda O � °» e 0 ° o 6�9 h � d " F o � a+va 6 ° o c N F � A o N y U U a °,G � E _ m'm ��'^m8 s.U2 N p �� p`,U,Zh Q8 • • r L J A �, °' u o F=, a` u � E cv a z � N U N C N O N a 6 N m m ti � V m v Q c 0 a V A � U 0 N .� m O � m z U d O a. w W N C7 « 5 c o �j m � a j v t v v � v `a i � e .W. � � m � � E � � Hz N O N N � N .3 � �n `v � 4 ¢ a � F ri� q 0o Q e N m e x � E E A � � � ' � P a � N d �' L O R C F E � o � U ° E Q � F y m� � �p w am� � s � ° v u`"s N � � �� h � a w` 0 F .c � o� y °(J U —`° s — �_ m �a i U z � o n n n a`�z� ��-�a�d Saint Paul Neighborhood and Cultural STAR Programs Report on 1995 and 1996 Funded Projects SAINTpAUL S T A R Jarillary� 1998 PROGRAM n. :'\ :-.,;^` 1C ♦ - ' �k - �, CIT'Y OF SAINT PAUL DEPARTMENT OF PLANNII�7G AND ECONOMIC DBVELOPMENT i i � � � � 1 �� Egecutive Summaries �Neighborhood STAR Program �Cultural STAR Program . . ,� i-iii iv-v � � � � � � � � � � � � � a�- 2a� Neighborhood STAR Egecutive Summary The Neighborhood STAR Program's focus is on revital.izing Saint Paul. It does this by using the sales taY derived STAR Program funds to leverage private and non-profit improvement efforts and investments in Saint Paul neighborhoods. The program works in partnership with community members, leaders, and organizations to accompiish the objectives of the prograni. The STAR applicants submit program and project proposals to an appointed boazd. This board, the Neighborhood STAR Boazd, evaluates the proposals and makes r�ommendations to the Mayor and the Saint Paui City Council. In this cotnpetitive process the City Councii makes the final decision about which pmjects and programs get funding. When making decisions about which projects and pmgrazns to fund, the STAR Board, Mayor, and City Council consider how the proposals help the City of Saint Paul reach its community and economic goals for revitalization. This report was prepazed by Fran Bums, a gtaduate student of the Humphrey Insritute at the University of Minnesota. It is an independent report. The oprions and recommendations presented are those identified by the author and aze based on his interpretarion of the information gathered through interviews with the neighborhood project managers, PED account officers, neighborhood residents, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomplishments and StudKFindings Currently the STAR Program is in the midst of its third funding cycle. Although the Neighborhood STAR Program is relatively new and most of the lazger projects and programs stili have active contracts, the time has arrived to examine the projects and programs as set forth in Part 6 of the guidelines. Through an examinarion and evaluation of the Neighborhood STAR Prograxu for cycles 1995 and 1446 it has been determined that through August 1997: • 165 homes have been improved • 50 businesses have been improved • 17 education and community centers have been revitalized • 9 parks and recrearion projects are safer and better equipped • 5 streetscapes are more inviring and accessible • 119 job have been created Other interesting findings • 22 of 61 projects are complete. Of the remainiug 39, only three aze under expired contracts. • On average, STAR funds aze be9ng matched with non-City resources more than 2 to 1. • A higher proportion of the 1996 match than the 1995 match comes from monetary matches. • An increased percentage of STAR-fund recipients from 1995 to 1996 have a positive view of the program. The most cited concern held by the neighborhood proj ect managers relates to lack of staffing and administrative costs. It was menrioned by 20% of the neighborhood proj ect managers interviewed. Information for this report was acquired through intzrviews and research of program files and documents. The interviews were conducted witfi neighborhood project managers, Department of Plazming and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who are generally the best informed source of infomiarion on their particulaz project or program, gave updated informarion on their accounts and also identified concems that they have with the Neighborhood STAR Program. The mast often cited concems were: • Neighborhood staffing and adminislration costs aze not paid by the prog�am, • Recourse and undenvriting requirements for the 1oan program are restricrive and unrealisric. • It is difficult getting fair bids from contracYors in a short period of time. • Regulations and guidelines for the program require too much monitoring and record keeping by the neighborhood pmject managers and project staff. Recommendations As a result of reviewing the accomplishments of and concerns abont the Neighborhood STAR Prograzn gathered in ttie interviews, recommendations have been developed to m�imize the benefits of the program and increase its rate of progress. Again, these recommendations aze fhose of the author. The recommendations are: 1. 2. � Require that each applicant execute a strategic »lan for the project or program that it proposes to undertake. Maintain awards as a mix of loan, grant, and seed capital funding. Sef aside fvnding for mutti-year proposais. Do not transfer tlus money into funding single yeaz developments. 4. Designate Saint Paul sites that potentially will accommodate mixed-use development. This information should be made available to potential applicants and the general public in a readily accessible form. 5. Give priority to projects and proposals that incorporate inter-neighborhood cooperation. 6. Coordinate Saint Paul revitalization with banks and contractors in an effort to increase the number of Iugh and higher density residential units available. 7. As competition increases over time require a larger match. 8. Cooperate with other departments and leveis of govemment in an effort to make plans known and foster compiementary actions in the physical environment. ii � � Summarv �� - i a� � The Neighborhood STAR Program is meeting the majority of its stated economic and community development objectives, and it has only completed two cycles. It can meet ali of the objecrives � including new housing and enhancing the taY base. However this dyuamic and flexible funding source requires well planned proposals that are being sponsored by committed groups and individuals. By implementing the above recommendations the Neighborhood STAR wili be able � to more fuliy meet its stated goals. � � � � � � lll Cultural STAR Exec�tive Summary The Culhual STAR Program's focias is on revitalizing Saint Paul's Cultural District and the culrival centers in the various neighborhoods. The Cultural STAR Program uses the sales-tas derived money to leverage private and non-profit improvement efforts in the arts and cuitural community of Saint Paul. This program Iike the Neighborhood STAR Program works in partnership with community members, leaders, and organizations to accompfish the objectives of the program. The Cultural STAR applicants submit project pmposals to the Cultural STAR Board. The boazd evaluates the proposals and makes recommendations to the mayor and the City Council. In detemvn'v�g if the proposed projects are fundable, the boazd, City Council, and Mayor examine how welI each of the projects may serve the community and its needs in light the objectives addressed in ttie prograni guidelines. This report was prepated by Fran Burns, a graduate student of the Humphrey Institute at the University of Minnesota. IY is an independent report. The options and recommendations presented are those identified by the author and are based on lus interpretation of the information gathered through the interviews with the cultural project managers, PED account officers, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomolishments and Study Findin�s The Cultural STAR Program is in its third cycle. It has'been effective in directing more than 75% of its funding to the Cuihuai Coiridor. As a result, the program has had a noticeable impact on the downtown and especially Rice Pazk. Through aa examinarion of the Cultural STAR Program for cycles 1995 and 1996 it has been detemuned that through August 1997: • 4 cuItural organizations' facilities have been improved • 2 pazk/streetscape have been improved • 2 commercial rehabilitarion projects have been completed • 10 jobs have been created Other interesting Tindin�s • 8 of 18 projects have been completed. The remaining projects are still under contract. • The projects are being leveraged with non-City resources at a ratio higher than 1:1. • No recurring concem was raised by the project managers in relationship to what the Cultural STAR Program was doing or the level of efficiency at which pmjects could be completed. Information for this report was acquired through interviews and research of the program files and documents. The interviews were conducted with Cultural STAR project managers, Department of iv � � � � � � � � � � y�� .� Planning and Economic Development (PED) account officers, and the Cultural STAR Program coordinators. The Cultural STAR project managers gave updated information on their projects. Recommendations As a result of reviewing the accomplishments of and concems about the Cultural STAR Program, recotnmendations have been developed to masimize the benefits of the program and increase efficiency in meeting its progtam ob,}ectives. Again, these recommendations are those of the author. The recommendations aze: 1. Require commercial developers in the cuihual corridor that provide services to cultural patrons to a�cept awazd packages that mix grant and loan funds. 2. Support multicultural projects by expandiug the percentage of funding auailable outside the cultural corridor. 3. Allow Cultural STAR funds to go toward operaring expenses. 4. Consider discontinuing the minimum funding rule for the cultural corridor after the initial 5 year period has elapsed. 5. Focus on funding org3IIlZations that tluough their creative efforts honor 5aint Paul. Ensure that children are part of the targeted audience of the cultural organizations that receive funding. The Cultural STAR Program is addressing all of its objectives. The STAR Program has helped downtown Saint Paui realize a renaissance and it is committed to conrinue that role. As funds available to cultural organizations dwindle, the Cultural STAR must strive to meet the changing needs of residents, visitors, and the cultural organizations. v I. Contents for the Neighborhood STAR Report Neighborhood STAR Executive Summary Cultural STAR Executive Summary Table of Contents A. Introduction B. Objectives of the Program C. Improvements Funded through the Neighborhood STAR Prograni D. Progress E. 7obs and Taxes F. Matches G. Perception of the Neighborhood STAR Program H. Issues Raised by Neighborhood Project Managers and Options for Addressing Them I. Overall Program Issues and Recommendatians 1. Short-Term Strategic Issues 2. Longer-Term Strategic Issues 3. Recommendations J. Conclusion Exhibiis Projecf Development Types (exhibits 1.1) Properries D'uectly Benefiting from the Neighborhood STAR Program (elchibit 1.2) Status of Program and Project Disbursements and Completion Rates for the SmaII STAR Program (eachibits 1.3) Status of Program and Project Disbursements and Completion Rates for the Large STAR Program (exhibits 1.4) Percentage of Funds Disbursed by Period (exhibit 1.5) Matches (e�ibiT 1.6 ) Projects with Sweat Equity as MaYch (eathibits 1.7) Matches (eathibit 1.8) Neighborhood Project Managers' View (exhibits 1.9) Issues Identified by Neighborhood Project Managers (ea�hibit 1.10) i-iii iv-v vi-xi 1 3 3 3,4,7 8 9 21,13 13, IS-19 19-24 19-20 ZO-21 21-24 25 2 4 5 6 7 9 10 11 12 14 vi � � � � � � � � Identification of Conditions Facing the Program (exhibit 1.11) 1995 Small STAR Projects 95.002 95.009 95.013 95.015 95.016 95.017 45.019 45.022 95.024 95.026 95.027 95.030 95.031 Neighborhood & Senior Citizen Garden Hamlitte Midway Greening/Park Accessability Project Child Care Expansion & Renovation Northeast Business and Development Center Open School Playground Reinvesting in Tomonow's Communities Riverview Area Streetscape Design Improvement Grand Avenue Summit Hill Beautification Thomas-Dale Handyman Fiac-Up Project Stutzman Block Initiative Walker-West Music Academy Music Garden WORC on Bikes The Express Bike Shop �' 1995 Large STAR Projects � � 95.104 45.113 95.115 95.116 95.125 95.127 95.130 95.133 95.141 95.148 45.151 95.152 95.153 95.155 95.158 95.165 95.166 Aesthetic Uplift and Senior Citizen Assistance Dayton's Bluff Neighborhood Housing Services Payne Avenue Commercial Gateway Strong Neighborhoods=Safe Cities Hamline-Midway Rehabilitation Corporation (H-MARC) Jewish Community Center Capital Improvement Macalester-Groveland Middle Income Fix-Up Neighborhood Development Center Dale Cross Road Development Strategy St. Alban's Terrace Railroad Is1and/Moving on the Right Track Riverview Area Streetscape West Side Business Development L,oan Fund Industrial Expansion and Renovation Loan Prograzn Phalen Corridor Redevelopment Project Cambodian Community Center University Marketplace Facade Improvement �-iag 2425 27 29 31 33 35 37 39 40 42 44 46 48 50 53 55 57 59 61 63 65 67 69 71 73 75 77 '79 80 82 84 vii 1996 Small STAR Projects 96.001 96.002 96.003 96.004 96.005 96.009 96A11 96.013 96.014 96.016 96.017 96A19 962 University Avenue Facade Improvement Maintenance, Training, & Dishibution Center Furniture Wazehouse Children's Center Playground Dayton's Bluff Youth Project HamIine Branch Library Public Improvements Skyline Towers Piayground Project Saint Paui Access Solutions Project John Alden Square Gazebo St. Anthony Park Facade Impmvements Progruu Salvation Army East Side Corps. Community Center Parlang Lot Stutzman Block Facade 87 89 90 92 94 96 98 I00 102 104 106 107 1996 Large STAR Projects 96.103 96106 96.109 96.114 96.I15 96.119 96.122 96.123 96.126 96.128 96.133 96.141 96.145 96.151 96.157 46.163 96.168 96169 96.170 394 Dayton Avenue Rehabilitation Project Gateway to Como Pazk Lighting Arcade/Maryland Face to Face Minnehaha Mall Enhancement Lazge Format Printers Highland Viliage Revitatization 5e1-Dale Laundromat Build Community and Neighborhood Capacity MacLazen Hill Condominium Association Reconstruction Project Minnesota Boat Club Restoration Frogtown Entrepreneur Center Phalen Corridor: Williams Hill RAP Midway Area Head Start Program Coordinated Housing Investment Program Salvarion Army 7th Street Community Center Ramada Hotel University-Midway Neon Sign Pmject West 7th Commercial Revitalization Lyngblomsten-West 7th Senior Housing 108 110 111 113 1l4 116 118 120 122 124 126 127 129 130 132 134 135 136 138 viii � � � � � � � � � � � ix f � ,� II. Contents for the Cultural STAR Report A. B. C. D. E. F. G. H. I. J. K. Introduction Objecrives Improvements Funded Through the Cultural STAR Program Progress Compliance Economic Impacts Matches Perceptions of the Cultural STAR Program Issues Raised by the Cultural Project Managers Overatt Program Issues and Recommendations 1. Short-Term Issues 2. Longer-Term Issues 3. Recommendarions Conclusion 139 139 141 141 141-142 142 142,145 145 145 146-147 I46 146 147- 148 148 Exhibits Status of Culhu�al STAR Accounts (eachibits 2.1) Matching and STAR Funding (e�ibit 2.2) Cultural Matches (exhibit 23) Cultwal Project Managers' View (exkibits 2.4) 140 143 143 144 X �. � 1995 Caltural STAR Projects � � � � 95.509 95.510 95.511 95.516 95.518 95.523 95.528 95.530 95.534 Skyway Lighting Library Facade Lighting Rice Park Improvements Minnesota Club Handicapped Entrance Minnesota Museum of American Art ExpansionlRenovation Ordway Patron Service Improvement Arts Resource Center Expansion Saint Paul Chamber Orchestore Cambodian Community Center � 1996 Cuitural STAR Projects � � � � � 96.542 96.545 96.546 96.549 96.550 96.551 96.552 96.554 46.559 Science Museum of Minnesota Expansion Friends of the Library's Used Book Store Hilicrest Recrearion Center Theater(Communication Room History Center Exterior Signage Cultural Comdor Streetscape Plan Jackson Street Roundhouse Museum Development Museum of Wheels/Storefront Gallery Minnesota Centennial Showboat Renovation NeimanlJemne Building Loan � � C Q� - l a� 149 150 151 152 154 156 158 159 161 162 163 165 166 167 168 169 171 173 xi L' � i � A. Introauction Neighborhood STAR Report �� The Minnesota State Legislature approved authorizing legislation in May 1993 which pennitted the City of Saint Paul to levy an additional %z cent sales taac. 11us legislation states that the revenue may � be used to pay for all or part of the capital eapenses for expansion and remodeling of the Saint Paul Civic Center Complex, and that "the reminder of the funds must be spent for capital projects to further residential, cultural, commerciai, and economic development in both downtown Saint Paul � and Saint Paui neighborhoods." Through a resolution the City detemuned that 50 percent of the additional sales ta� raised would go to neighborhood revitaliza6on. The remauring 10°/u would support cuiturally related projects, primarily in downtown Saint Paul. The City Councal established � the Sales Tax Revitalizarion (STAR) Program which includes the Neighborhood STAR Programs, in mid-1994 to awazd grants and loans for capital improvement projects. � This report examines the Neighborhood Sales TaY Revitalizarion Pmgram (STAR) for the first two cycles of the program in 1995 and 1996. It considers the program's strengths and weaknesses by looking at 61 individual projects and programs funded through the Neighborhood STAR Program � as well as overali indicators of the program's performance. The report focuses on the level of success that the progam has had in meeting the goals and objectives outlined in the program guidelines. The examination discusses cSrcumstances and strategies which have helped the � Neighborhood STAR Prograni meet its objectives and identifies areas for nnprovement. The report emphasizes the opporhxnities and threats which are present to the Neighborhood STAR Program. � It proposes options and recommendations for enhancing the program by taking into account the diversity of the program participants, the expectations of City of Saint Paul officials and staff, and most of all, the needs of Saint Paul residents � Information for this report was acquired through interviews and research of progam files and documents. The interviews were conducted with neighborhood project managers, Department of � Planning and Economic Development (PED) accownt officers, neighborhood residents, and the Neighborhood STAR Progam coordinators. The neighborhood project managers, who are generally the best informed source of informa6on on their particular project or program, gave � updated information on their accounts and also idendfied concems that they have with the Neighborhood STAR Program. This report was prepated by Fran Bums, a graduate student of the Humphtey Institute. It is an independent report. The options and recommendations presented aze those idenrified by the author and aze based on his interpretation of the information gathered through the interviews. Projecf Development Types ror+sgs Ne�annoNwoa sraFt 5'1�026,000 (36.SX) Commerciet Sss,000 �ts 564,425 (2.3%) Parks 8 Reueationai unprweme� 'Sea�9 Ne9hmrta W r-Sate CSf nas tivee mmpom�es resiE ntiel. tdnre�aal.vtl aPak vnW'mmvR z9sx) Res�aenGa� (282Y) FAUratioN COrtmurpry& Social SerNCes I Project Development Types � for t996 Neig�6orhoad STAR 5/,290.000 (31.�) Coimnerclai 5140p07 (S.6%) 5 SSS,92a ryAH.) Parks & R¢creatlanal Exhibits 1.1 W.BX) Reside�rtal .BY.) EduqtloNCommunity & Social Services E � � � B. Objectives of the Program "ID �c�p � The following objectives are listed in the program guidelines adopted by the City Council: � Economic development 1. Enhance the commercial and industrial taY base - 2. Create family supporting jobs � 3. Improve andfor stabilize local businesses and provide athactive and economically viable neighborhood commerciai areas 4. Reuse land following pollurion clean up � Community development l. Improve and/or stabilize housing stock and/or increase market value 2. Provide new housing that meets an identified need in the mazket � 3. Improve public infrasmncture and private green space especially if the projects are linked to related residential or commercial improvements � C. Improvements Funded Thro�h the Neighborhood STAR Program Tt�e results from the interviews with the 61 Neighborhood STAR pmj ects and programs indicate that � a substantial amount of revitalization has occurred in Saint Paul as a result of the Neighborhood STAR Program. L3p to the time this report was written 215 housing and commercial properties were � directly improved as a result of STAR projects and programs. The Neighborhood STAR programs and projects haue accomplished more than residential and commercial improvements. As a result of the program, two streetscape improvement projects have been completed, one on Concord Street � and the other on Grand Avenue, two more are partially completed on Wabasha Street and Ford Parkway, and another streetscape improvement on Como Avenue is in the process of being implemented by Saint Paul Public Works. Additionally five parks and playgrounds have been � created or improved and fotu more have been partially implemented. Lastky I7 community center projects have been awazded Neighborhood STAR funds. Of those projects, nine are completed and eight are in the process of being completed. The diversity of projects funded through the � Neighborhood STAR Program allows it to touch virtually everyone in Saint Paul. As a result of the streetscape projects, tens of thousands of Saint Paul consumers have improved shopping environments, and in the cases of the pazk, playground, and community center improvements, � thousands of families and their children aze beneficiaries. b D. ro re s Nearly all of the 19 fully disbursed projects and programs &om 1995 and 1996 have achieved the goals ouflined in their individual contract descriptions. Three of the fully disbursed projects and programs have noi been fully unplemented. One is a program which involves a loan guaranty and is still under contract (Mao-Groveland). The money was disbursed by the City prior to any improvements because of the way this program was set up. As a result full disbursement does not indicate completion. The other two incomplete projects ( John Alden Gazebo & Dayton's Bluff Youth Project) face a different circumstance. They went over budget. One of the two is completing the project by the end of fa111997 while the other informed the Neighborhood STAR Program about its cost ovemms and was permitted full reimbursement because the project could document a sufficient matcb and had been completed to an acceptable level. As of September 1997, 22 projects and pmgrams have been completed. Tlus includes three accounts which have not been fully reirnbursed. This is due to the fact they still haue not submitted the appmpriate reimbursement forms, or they declined the remainder of the awazd. Currently only three of ihe remaining 39 progams and pmjects that are not complete have eapired contracts. The three programs and projects with expired contracts are under the Neighborhood STAR staff's and board's serutiny. The majority of the open contracts expire in 1998 and 1999. Properties Directly Neighborhood 1995 Houses Busmesses Streetscapes Parks and Recreation Fducalion & Comrunity Centers Exhibit 1.2 Benefiting from the STAR Program 73 22 1996 92 2% 2 4 Total 165 50 5 9 F'7 11 17 Progress on the impiementation of prajects has been varied and on average fair. The small grant projects are easier to gauge in this regazd because their contract periods have elapsed, and also because the contract signing process was more efficient. The small grant portion of the Neighborhood STAR Program has a sepazate application process from the remainder of the program. Small grants are awazded in an amount of $20,000 or less, and contracts are effecrive for only one yeaz aRer signing. Thus, the contract signing took less time for the small grants because recourse was not an issue and the contracts were less complex. The 1995 small grant contract completion progress rates within the contract periods were low (38.5%) but have increased by more than 50% for the 1996 small grants. The completed Sma111995 Neighborhood STAR pmjects were implemented on average one month prior to the expirarion of their contracts. The reason that the overall completion time was one month prior to the deadline was because a few projects were completed extraordinarily quickly. The pmjects that were completed more quickly would be classified as commercial and not as residenrial. The 1996 Smali Grant Program indicated an average completion rate of four months prior to contract eapiration. This too shows moxe success in the timely completion of its commercial and civic pmjects than it did with residential projects. � � � � � � � � �� L � ■ STATUS OF THE 1995 SMALL STAR ACCOUNTS � Siatus of Projeet Aceount Dis6ursemeMs � fort9955mai1STAR i 8 (61.5°/) 2 (15A%) •rmry I ❑none ��N I 23.1%) Projects Compieted within Anticipated Period far 7995 Smali STAR 3 (23d%) • Yes ❑ no 10 (76.9%) I Pro}ects Cnmpleted within Contractetl Period Ior t995 SmaI15TNft 5 (38.5%) .Y� o no �� - �a� STATUS OF THE 1996 SMALL STAR ACCOUNTS Status of Projeet AccomH Disbursements i for�9965ma115TAR 5 (41.7%) 2 (76.7%) 5 (4'1.7°! ) I .Poiry OfIOf18 �PaNalry Projeets Completed wHhin Anticipated Period tor 7896 Small STAR I 5 (41.7°/,) 7 (58.3%) •yss I ono i an:a�mmmpemnaawnanm�omvrcetampqnu.eae<imAnsxm�unar.a I nwraerne.w�+�omi-w: .— _ . I Projects ComplMed within the ContraMed Period � tor 1996 Small STAR I 7 (58.31) � • Yes ❑ no 5 (41.7%) e.a�.�mm, n...m� � r..m.a�.�.m=�-ra { Exhibits 1.3 5 8 (61.5%) STATUS OF THE 7995 LARGE STAR ACCOUNTS StaWS of ProjeM Account Uisbursemenis rw �,rn +su x.�cxn�,�e sue Jryz.aXl f0(54!%) sFl om 9p�mM � Projects Completed Within Mticipated Period i lmf995WPSTAR Ys p11J eimwOln Projects Completed wiMin ContracMd PeriOd ro.�aro.�mrLk��sTAa 15 �63%1 •YM om JIRb%) euwNN t(59X) 2¢wuammpleWnOg¢Slammtcmuetbr PDI�.��aae NYIMefOfeqxld�l¢-� y¢ )C5.1 ¢ ro Exhibits 1.4 STATUS OF THE 1996 LARGE STAR ACCOUNTS Status of Project Account Dishursements �r ivw+sss wqnna noea srat f0. t (]BA%) M1�J eWrYaYy Prol� �mpieted wAhin Mticipated Period I ! I torWplsssNtlpMwnmasi�x i 9 (OAX) �Y o �b 3(tS!%) aW�% )NSSY•) Projects Completetl withirt Contract Periotl brinPt936Htlp1qe�M1eoL3TIJt t6�91.T%) fl43%1 •nmY swm.ib BqY NGml�l�+ nEel:B�S.lilrtap]mM.a;➢��M15��1�4dNW NW�.+IpfGtp�-19ye�es � �. � � � � � � � � q�- �d� It is harder to determine the rate of completion for the 1945 Latge Neighborhood STAR and 1996 Neighborhood STAR projects because a majority of the projects have not reached the deadline expiraiion dates on their contracts. The 1945 Large Neighborhood STAR proj ects look promising for timely compietion. For the completed projects the average progress schedule was finished eight months prior to the conhact eapitarion. Project managers from both the 1995 and 1996 Large STAR Prograzns are indicating an expected timely completion rate ofmore than 75°/a. Tlus is substantially higher than the 1495 and 1996 Small STAR grant complerion rates. The success rates for all the 1995 and 1996 Large Neighborhood STAR acrivities are impressive, but aze still strongest in the non-residential development types. One must bear in mind that comparing the rates of completion between the Small Neighborhood STAR and the Large Neighborhood STAR might not improve one's understanding of the entire STAR Prograzn. For one flvng the Sma11 and Lazge Neighborhood STAR Prograzns have different lengths of time to complete the'u projects. Second, the bigger loans and grants aze typically granted to lazger organizations which might have more resources and sawy to complete a project. Third, the 1995 and 1996 Large Neighborhood STAR projects have not come to fruition in most cases. The progress rate for these proj ects is based totally on expectations. Thus by coraparing the small and lazge projects one is comparing what has been with something which has not completely happened. Percentage of Funds Disbursed by Period Sma111995 � Total f Large 1995 � Total � Smali 1996 Total � Large 1996 f Total Exhibit 1.5 Percenta�e Disbursed 80% 61% 72% 32% Contract Amounts of $ I 60,254 of $2,653,578 of $178,374 of $3,297,163 *As of 913/97 (36 of 61 contracts still open). E. Jobs and Taxes Determining the economic impact that Neighborhood STAR funds have on a pmject is difficult The STAR does not fund the entire project. At least half the project costs have to come &om another source(s). Moreover, other factors such as accessibility, crime, amenities, jobs, schools, and numerous other variables play a significant role in the impact of aprojec� Two traditional economic measures of a projecYs success aze jobs created and ta�ces paid. Because the Neighborhood STAR projects all involve development with bricks and mortar, these measures are fitting. Job creation cleazly occurred in these projects, albeit of a temporary duration, because of the nature of construction. Hundreds of temporary construction jobs were generated. In addition, permanent jobs were created on varions STAR Progratn projects. In 1995, Neighborhood STAR-funded projects created jobs for 15 permanent full-time employees (FTE) and 32 part-time employees (PTE). 'The 1996 STAR-funded pmjects show a substantiat increase in FT'Es to 66 and a decrease to six PTEs. The other measure to be considered, ta�ces paid, has Iimited usefulness because of tfle frequency at which properties are valuated and the method useti Yo determine the tax amount. Properties are reappraised at Ieast every four years whereas the Neighborhood STAR Program has only been operating for two complete years. For this reason most of the STAR projects have not had an increase in property valuation. The method by which Ramsey County revaluates much of the pmperty also slows the process. They take an average pmperty value for an area and assign that value unless there is a petition of a particulaz valuation. Because of this approach most of the business and residentiai enterprises that received Neighborhood STAR funds were not reappraised yet. All of the property tac valuation increases that can be documented as resulring from the Neighborhood STAR Program were associated with business projects. For instance fhe new owner of the Ramada Inn on Old Hudson Road paid offthe delinquent taxes from the previous owner. This renovation project which included Neighborhood STAR funds has restored this property to its full operational level. As of May 1996 tlze new owner paid $342,027.15 in previously assessed tases. Another example of an increase in the taY base or successful taac collection was due to the development of a light industriat enterprise at 110 Sycamore Street. T1us property was previously under the care of the Saint Paul Port Authority and was classified as tas-exempt. As of talc yeaz 1998 this property will be talced as a commercial properiy with a land value of $138,300 and a building value of $500,100. A third property which contributed significantly to an increased taac base was the STAR funded Sel-Dale Laundromat. T7us pmperly was in health-threatening disrepair, and it was valued at $50,400. After the renovation tlus property, classed Commercial B, was revalued at $ I25,600. This is only a smail survey of properties that have received STAR funding and have recently increased the tax base, but as the years elapse and more 3TAR recipient properties are reappraised the valuation and tases aze likely to increase. f� � 1 F. Matches As stated eazlier the newness of the Neighbozhood STAR Program and the fact that it does not act � in isolation makes it difficult to determine its impact, but some facts are ciear. For instance the funding matches to the Neighborhood STAR Program for 1995 and 1996 are runtung at more than � � Matching and STAR Funding for 1995 and 1996 Neighborhood STAR ��a� � � � � � � � Eghibit 1.6 r � � . STAR Disbursements � Documented Matches twice the required rate. On average, every time a Neighborhood STAR dollar was reimbursed there was $2.18 invested in the project from other sources. The most robust example of a match is seen in the 1995 Lazge Neighbarhood STAR Program. It shows $2.61 of a private match to every dollar of STAR contribution. Although, at this point, data does not show this increasing from 1995 to 1996, it is probably a function of tirue. Only 32% of all 1996 Lazge Neighborhood STAR funds have been disbursed whereas 61 % of funds have been disbursed for 1995 pmjects. As 1996 projects aze completed, the current match ratio of $1.57 to every Neighborhood STAR dollaz is expected to increase. The proposed pledges indicate that there will be $3.04 provided for every Neighborhood STAR dollar for the 1996 Large STAR projects. This pledge projection compares quite favorably 0 Projects with Sweat Equity as Mahh I forSmali 1995 STAR 70 (76.9Yo) 3 (23.1%) � yes � no I P�ojxts wiM Sweat Equity as Match for Small 1996 STAR 6 (50.0%) a yes 6 (50.0%) � � Projects wiM Sxeat Equity a5 Mgtch I for Wrge 7995 STAR �� '� n�R '�`� � e„ r r 4;:3 x'�t,.r �. �. a Z � .�::- F .�i;:J `w,,, x-- � y25 � no i f Projects wifh SweM Equity as Ma[ch � i for La'ge 7996 STAR i �� •� � F �� ' � � av � � �� .. r "F �I� { fi }a( I y.� a .• .s ''Gkk'' BL.�'.n'uA� � yes m no F�chibits 9.7 IO � , , � !. � � � � � � LJ � t• . ! Exhibit 1.8 � to the $2A1 piedged for the 1995 Large Neighborhood STAR Program. What is equally heartening � to the increased rate of match for Neighborhood STAR funding is the fact that the matching dollars increase. The Neighborhood STAR Program is accomplishing its goal to be a catalyst for reinvestment in Saint Paul's neighborhoods. � Sweaf Equity: Another positive indicator of the economic unpact of the Neighborhood STAR Frogram is a decrease in the number of projects which use sweat equity as part of the match. � Although proj ects can show as much as 30% of their match as sweat equity and in some cases more for the Small Grant Yrogram, only 1.6°/a of the total documented match has been in the form of sweat � equity. The number of projects identifying sweat equity as part of their match decreased from 13 in 1995 to 10 in 1996. The absolute number of dollazs has also decreased from $75,546 in 1995 to $27,456 an 1996 as of 9/3/97. This decrease is addifionally interesting because the absolute amount � of STAR monies. G. Perception of the Neighborhood STA.R Pro�ram During the interview process both neighborhood project managers and residents gave their opinions about the Neighbarhood STAR Program and its impacts on their communities. Despite some issues raised by the managers their overall responses would be characterized as posifive regarding the Neighborhood STAR. For example, Colette Ryan, the project manager of Chiidren's Center 11 Neighborhood Matches through 9/3J97 , Project Managers' View of the STAR Program I for Small 1895 STAR Recipients 9 (692H.) 2 (15.4X) 2 (15A'b) � positive o negative � no cammeM Project Managers' View of the STAR Program ' for Smalt 1896 STAR Retipien4 e (75.OH.) 3 �25.OR) � posNVe � no wmment Project Managers' View of the STQR Program !` for Large 1995 SiAR RecipieMs 9 (52.9•4) 3 (17.6°�} 5 (29A%) � positive � negadve � no wmment Project Managers' View of the STAR Program � forLarge199657ARRecipients 11 (57.9°/.) Z ltasxl 6 (31.C/.) Euhibits 1.9 �� I o negative � � no wmment '� �� C� � � 12 � 1 � lJ `� . � Playground, described the Neighborhood STAR Program as a"good fiY'. She said, "the coordinators were helpful." Another instance that represents the positive perception that the project managers have was voiced by Burt Gart. Mr. Csazr is the project manger of the Jewish Community Center Capital Improvement. He said, "the STAR worked well...it was relatively flc�ible." This outlook on the Neighborhood STAR Program was shared by most of the participants. Neighborhood staff are convinced of the Neighborhood STAR Program's positive impact on Saint � Paul and are expecting continued success in the future. Almost every manager's concerns about the Neighborhood STAR Prograzn were subordinate to their support of the important purposes of urban � revitalization and development as achieved through the I3eighborhood STAR Program. The neighborhood project managers' perceptions are shown in elchibit 1.6 and indicate that the positive view of the Neighborhood STAR Program has increased from 60% to 64% of garticipants and the � negative view has decreased from 17% to 6% of participants from 1995 to 1996. The residents and community members who commented on the Neighborhood STAR Program and its impacts were even more posirive about the STAR's purpose to improve neighborhoods than the project managers, � but they were less familiaz with the actual program. An East Side resident, Marion Sorlien said, "it (STAR) is a life-saver." She added, " others (homeowners) will follow suit (and renovate their homes)." Another resident, John Allen of the Aurora-Saint Anthony neighborhood said, " this (the � STAR) is a great opportunity. It has helped us spruce up the neighborhood." There seemed to be an overall attitude that revitalization programs offered by the City like the Neighborhood STAR "prime the putnp". They were hopeful that with such assistance they could improve their � neighborhoods and communities and enhance the general level of confidence in Saint Paul as a great piace to live, work, and invest. � � � � H. Issues Raised by the Neighborhood Project Managers and Options for Addressing Them: The options and recommendations presented ate those identified by the author and are based only on his interpretation of the information gathered through the interviews. The neighborhood managers of STAR pmjects identified various issues that they believe impede the STAR from having its greatest benefit for Saint Paul neighborhoods. It is possible that through an examination of these issues new options can be considered. After this step it can be determined if change wili improve the program and what shape the revisions should take. Concern #i � The most often mentioned concem discovered through the project interviews was the fact that Neighborhood STAR funds are not eligible to pay administrative costs incurred by neighborhood groups. The Neighborhood STAR Program participants aclaiowledged and concurred with the ' Minnesota State Legislature's objective that Neighborhood STAR funds go toward capital improvements and were aware that direct project management expenses are reimbursable, however 13 Issues Identified as Concerns by Neighborhood Project Managers Percentage of Managers Citing the tssue 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 900 Neighborhood Staffirtq and Administration Costs (20%) !rse antl Underwriting Requirements for Loans (73°h) � � � � Fair 8 Efficient Projed Bltls (10%) I 7 � � � � W I O Program Guitlelines and RegWations (10°k) I Q�, ,I � � Reimbursements (8Yo) � I Funding Match (89'0) Timing af Cyctes (5%,) Exhibit 1.10 14 � j L� � Q�- �a� they eapressed concem that projects are not able to be completed or at least not completed in a timely manner because of lack of funding for admiiustration costs. The organizations and community goups who aze participating in the Neighborhood STAR Program say that their budgets do not allow for the expense of administering the projects. It has been difficult if not impossible to get the funds elsewhere. At a m;n;mum the lack of administrative suppozt slows the implementation process down. Project managers recommended that 10% to 15°!0 of STAR awazds should be eligible to reimburse the participant for project administrarion and staffing. � Options � � � , � Petition the Minnesota State Legislature to amend the STAR authorizing legislation. In prepararion of this initiative the Neighborhood STAR Program could request that 1997 Neighborhood STAR participants provide informarion about their administrative costs. This will be an additional uncompensated responsibility for the projects at fust, but it will potentially aid future participants and 'unprove the level of information that the legislature will need to make a prudent and well-crafted decision. Furm cooperative partnership(s) with non-profit foundation(s). Since the Neighborhood STAR Program cannot directly give administrative reimbursements to projects, it should help the participants ]ocate the money by forging a fast-track procedure with appropriate foundations which would be agreeable to funding administrative costs. The project managers indicated that they ultimately get administrarive funds from foundations. This arrangement would merely streamline the process in order to get projects expedited. � • Require each Neighborhood STAR Program applicant to deTinitively describe from where its administrative bndget is coming. A question could be added to the Neighborhood STAR application which pinpoints the projecYs source of administrative � funding. These monies could be from the appIicanYs resources or those of another agency, but the funding source for administrative expenses must be identified in detail. t Concern #2 � Another set of issues that the project managers commented on was the recourse and undenuriting requirements of the Neighborhood STAR loans. The Economic Development Corporations (EDCs) and the Community Development Corporations (CDCs) voiced strong concem over the usefulness � of recourse which hoids their organizations responsible for the loans that they make. Again they understood that the Neighborhood STAR Program is hying to generate an envirorunent in which the EDCs and CDCs make sound lending decisions, but with little or no fixed assets they see this as � being ineffective and producing a chilling effect on the participating organizations' willingness to use the Neighborhood STAR loan funds. Another problem that the project managers recognize is the underwriting criteria that the Neighborhood STAR Program requires for loans. They believe that � credit reports alone do not take into account all the important factors that make a project worthy of funding. They think that the Neighborhood STAR Program's requirement to make loans that 15 maintain a 20% or lower loan loss level prohibits the Neighborhood STAR Program from functioning as it was intended. The community organizations that take issue with the Neighborhood STAR loan prograni see high risk as a reality of community and economic renewal in urban settings. Some participants believe that the Urban Initiatives Pmg�am (IIIP) administered through the Minnesota Depattment of Trade and Economic Development offers the Neighborhood STAR Prograni a model. The model shows fhat loan recourse goes to the end borrower. The commtmiry parhner (the intermediary agency) is not responsible for paying the monies back to the pmgram. The reason that recourse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regulations and requirements. Because of these qualities, it is seen as an effective tool by some parties involved with economic development. Options Conduct a Study. A study could be conducted that evaluates the social benefits and costs as well as the economic benefits and costs associated with changing the acceptable risk rating level of loan portfolios. The acceptable rate must be determined with proper consideration of all pertinent factors. With this said it must be recognized that underwriting criteria aze critical and must be followed when lending out citizens' taac money. As long as a thorough analysis is done of social and economic factors when considering a proper risk rating the undenvriting criteria should remain constant. Expand the STAR Program's relationship with private lenders. The Neighborhood STAR Pmgram could continue to enhance its partaerships with private lenders. In doing this the Neighborhood STAR's financial resources are matched with the bank's financial resources, community coniacts and Iending I�owledge. There are several Neighborhood STAR projects which aze demonstrating this relationslup. Two such examples are the Macalester-Gmveland Middle Income Fix-up and the Coordinated Housing Investment Program. They each can urilize the strengths of banks and reach citizens who haue not traditionally benefited from revitalization efforts. Concern #3 A concem that six of the participating managers cited was the difficulty they had when trying to get bids on proj ects. In many cases once they got a contractor to bid, the quotation did not fall wittrin their budget. Many of the project managers believe this happened because the economy was robust in 1996 and early 1997, and in pazticular the construction industry was strong. As much as the strong economy slowed the bidding process and inflated contractor fees for Neighborhood STAR projects stymied implementation, it is well wiYhin expectation that these conditions will not continue indefrnitely. In the meantime perhaps there are approaches that can be taken. � � � Options � � � � � � � � � � � � �� . � � Identify and assist broad-based community gronp(s) or other non-profit agencies to fnnction as (an) information resource(s) to project managers about available and qnalified contractors. Many of the smaller social and community organizations do not have the time, lrnowledge, or patience to locate andlor work with contractors. A resource like this could help to make certain that available and qualified services efficienfly connect with projects. Fees could be charged and collected on the user. These could reflect the entire chatge or be subsidized by other supportive agencies or non-profit agencies. • Ensure that the application information concerning the general contractor and cost estimates is complete. As the Neighborhood STAR Program establishes itself, it gains mare prominence and citizen interest. The applicants and Neighborhood STAR recipients aze becoming more familiar with the expectarions and requirements of the program. In this environment comperirion for the Neighborhood STAR's limited resources is heightened. As of the latest version of the Neighborhood STAR Final Application (1997) the name of the general contractor is requested if lrnown. The question could be modified to simply request that the contractor be identified. This may only be tentative, but it would give PED staff and the Neighborhood STAR boazd a cleazer indication that the applicant is aware of the true costs of the capital improvement ptoject. Another application question that could be helpful would address whether the general contractor can meet requirements set forth under Little Davis-Bacon legislation. Concern #4 Another group of neighborhood project managers said that the guidelines and regulations slow down the projects, alter the final product, and decrease the effecriveness of the Neighborhood STAR Program. Of the six who menrioned this issue a few were concemed with changes in the administrative requirements during the beginning of the program. They understood the need for the particulaz changes but thought that it should not have been done midway through the cycle. All the interviewed participants felt confident that future changes in the progam would be reserved to the periods between cycles. A few of the project managers were disturbed by the amount of regulation and associated record keeping that was necessary. Many of the participants view themselves as small players. They see the regulations and requirements thwarting their efforts to improve their neighborhoods. � Options � • Continue to make changes to the Neighborhood STAR Program only during the interim periods between cycles. By foilowing this procedure of geater continuity PED can foster public confidence in the program. It demonstrates the City's commitment to the goals of the STAR Program when it recognizes and aclmowledges the spirit of the program as well as the letter of its guidelines and the need to change. 17 Provide participants with literature that not only describes the legislation that defines the Neighborhood STAR Program bnt offers them awareness of the reasoning and bene6ts behind ttte regalations which they must comply with as Neighborhood STAR fund recipients. The information packet could be developed in conjunction with the City as a whole. It could explain that many of the regulations which apply to the Neighborhood STAR Pmgam such as Little Davis-Bacon and affirmative acrion apply to all City contracts. Some of the more key details of the applicable legislation could be considered during the project compliance meetings for the Neighborhood STAR Program. PED must also recommit itself to maintaining accurate, thomugh, and pmperly accessible files on every account regazdless of its size or the client who is involved. Additiona! Concerns Three other issues were idenrified by more than one neighborhood project manager. They were reimbursements, matches, and the awar@ cycles. Tke first two issues were idenrified more frequently by smail grant recipients and tiie issue of awazd cycles was mentioned only by managers of lazge proj ects. The participants wanted more fleacibility on these points. In particular they wanted less of a matck requirement, some cash advances as opposed to reimbursements only, and earlier cycles to take advantage of the entire construction season. According to a few project managers, getting reunbursements rather than advances put their organization's finances under stress. The Neighborhood STAR pazticipants are on limited budgets and cannot put the money up front. Reimbursement Oprions: First participants should ba reminded that the Neighborhood STAR Program will make check payments jointly to the Neighborhood STAR-funded agency and the provider of the reimbursabie service. Secondty the Neighborhood STAR Program could consider giving advances under a certain dolIar amount to participants with a good history of project management with previous STAR projects. If they do not provide the appropriate papenvork to warrani the disbursement withiu a designated period the award will be decreased accordingly over a deternuned period of time. Matching Options: One possible option to address the matck issue would be to eliminate the match requirement on loans under a certain defermined amounf. This option would not benefit smail grant recipients, but it would help those who are borrowing money from a Neighborhood STAR program and cannot get additional funding elsewhere. Another choice which might help the small gtant recipient would be to lower the match requirement for small grant projects but not eliminate it. This would help ease the pressure on some of the smaller participants while still requiring them to widen the project impact through a match. Cycle Option: Because of seasonally adverse weather it is easiest, most economical, and best to complete all extemal project nnprovements during certain times of the year. In order to complete the projects with the greatest efficiency it is pmposed that the application pmcess begin eazty enough to allow the initial unprovements to be reunbursed during the beginning of the first spring after Yhe application was submitted. STAR neighborhood projecY managers discussed many other m � � � ' � •i issues during the interviews, but no other issue was mentioned by more than one project manager. The single mentions included: lack of periodic checks on progress, lack of geographical fairness, inadequate direcrion and training sessions, unclear lines of organizational authority, and the limited benefit of a low interest rate in light of the costs to adhere to program requirements IE. contractors that meet City requirements. It is important to be awaze of and understand the issues that each of the Neighborhood STAR � participants raises. These community groups and members aze uniquely familiar with the interests and concerns of Saint Paul residents, businesses, and other organizations. Their Irnowledge of the City and willingness to share it enriches the program and Saint Paul as a whole. With this in mind � trus report wiil consider the interviews, the account files, and the various measures and indicators of the program's success to idenrify strategic issues and recommendations. � J. Qverall Program Issues and Recommendations � L i � � !J � � � � � � 1. Short-Term Strategic Issues: a. How can the Neighborhood STAR Program promote more expedient implementation of projects? When projects and programs are not completed within the contracted time period, they lose momentum. This has economic as well as social costs. The process of awarding Neighborhood STAR funds is competitive. In adherence and support of this feature of the program repeated efforts must be made at each step of a proj ecYs progress to ensure timely implementation. Although many of the projects both large and small accomplish their objectives on time and with minnnal oversight and direcrion, it must be recognized that each implementing organization has different strengths and weaknesses. It is the role of PED account officers and staff to identify these and guide the organizations in light of their individual needs and capacities. b. How can the Neighborhood STAR Program encourage participants to use the loan money? After exunining account disbursements and interviewing the project managers it is apparent that some of the groups who are participating in the Neighborhood STAR Program aze unwilling or reluctant to use STAR loan funds for neighborhood housing or commercial programs. In particular the difficulty associated with using loan money is most apparent among program operators rather than with individual projects. According to loan program operators recourse to them rather than to the end borcower makes it unattractive. They indicate that they are unable to assume that level of exposute for anoffier parties actions. However, it has been detemuned that it is important for the future of the Neighborhood STAR Progam that a certain amount of the money awarded be paid back. In particular by lending most of the STAR funds out rather than granting them the Neighborhood STAR Program provides for its longer term existence, assures the tas paying public that the awazds are investments (and thus will pay back to the community in many 19 ways inctuding monetarily), and gives the participants an additional motivation to develop that which is possibie instead of mostiy experimenring witti the improbable. On this note, what can be done to reimburse a lazger portion of project expenses with loaned money ratherthan grantfunds? c. What can be done to stimulate the number and qnality of multiple year development endeavors? This objecrive is set forth in section III of the Neighborhood STAR Guidelines. The multiple yeaz development endeavor has been pwsued notably with the Phalen Comdor Initiative, the Stutzmann Block Improvement, and the Coordinated Housing Investment Program. What can be done to enhance this aspect of the program? d. What can be done to foster cooperative efforts between development types? As seen in e�ibits on page 4 there are numerous programs and projects that fall within the five delineated categories, but with a few exceptions the pmjects are not designed specifically to complement one another. The projects that do complement one another aze usually commercial developments with streetscapes or residential developments with pazk/playgound facilities. Plans like these aze hopeful and can be used as models, but the Neighborhood STAR Program needs to go further. The Neighborhood STAR Program is targeted to not only make the neighborhoods look better but feel better. The multidimensional proposals can go a long way to protect and promote commimity stability and in tum make the community feel better. 2. Longer-Term Strategic Issues: a. How can the Neighborhood STAR Program facilitate greater cooperation between neighborhoods in commercial and residential development? A coordinated effort nf plan� and development could hring about more successes in Saint Paul neighborhoods. Although each section of the city has unique needs, a unified approach will help mitigate the portable quality of deterioration and blight. There are abundant human resources in Saint Paul neighborhoods and a shared identity througii municipal citizenship. Coordinated steps a�e being taken in certain parts of Saint Paul to capitalize on these conditions and opportuniries. The Neighborhood STAR Program should idenrify these efforts and work with them to revitalize the neighborhoods. b. What should the NeighborLood STAR Program do to increase the number of residential options in Saint Panl? The program is doing an excellent job in meeting the Neighborhood STAR's community development objective of improving andlor stabilizing the housing stock. This can be verified on page 5 which enumerates the houses served in the program. Under the guidelines this community development objecrive is the first cited. The second point under community development objectives recognizes the need for the Neighborhood STAR Program to assist with � , � � � � � , � , � � 3. � � � � I� �! the provision of new housing in Saint Paul. The Neighborhood STAR Program in all it diversity has addressed this objective albeit incompletely. Maintaining this goal is not only important for Saint Paul but the entire region. c. How can the Neighborhood STAR Program ezpand the revitalization process in Saint Paul? The Neighborhood STAR Program is a toal to help business and community groups develop their own capacities to sustain and further advance their neighborhoods. With the help of non-profit foundations and taacpayer contributions these groups have been effective in sustaining and 'unproving their neighborhoods. Over time as conditions in Saint Paul neighborhoods aze further stabilized, the Neighborhood STAR funds should be used to improve the environntent for redevelopment. Additional costs which aze associated with urban redevelopment like remediation could be partially covered with Neighborhood STAR funds. The Neighborhood STAR Program can help level the playing field, so development can occur as easily in Saint Paul as in the outlying azeas. d. How can PED and particularly the Neighborhood STAR Program work in greater unity with other city departments and ufility service providers? The goals of these different govemmental, corporate, and non-profit players are often the same. Perhaps it is just a matter of time lines or different visions that keep the parties from discussing plans and maldng decisions which are mutually informed. The Neighborhood STAR Program has an important opportunity and responsibility to work with the numerous players in order to make Neighborhood STA R proj ects and programs as successful as possible. Recommendations a. Imptementation There are many factors that have slowed the rate at which projects aze implemented. Nevertheless, Neighborhood STAR projects are being completed. The majority of Neighborhood STAR participants did not raise concerns about the Neighborhood STAR Program slowing their progress or failing to assist them in some identified manner. Most of the organizations acknowiedged weaknesses in their own groups which slowed the implementation process. Although the Neighborhood STAR Program did not create these weaknesses, it is in the interest of the program to assist the organizations to implement their projects. The most important thing the Neighborhood STAR Prograzu can do to sgeed 'unpiementation is help � the recipients identify their own strengtbs and weaknesses. Depending on the participant this exercise will vary, but it will be required of all types of projects whether they are individual businesses, community improvement projects, or community-led loan programs. The application t can ask questions to ensure that the projects aze not only useful but that there are people on many ]evels who aze committed to seeing it through as quickly as possible. The pro}ect ideas must be � F�� f fresh yet addressing an ongoing concern—a concern that has reached critical mass . A plan for tke project should be required. It will ask for a thomugh and candid assessment of the organzzation or entity's abilities to catry offthe project. It wili identify possible impasses and offer contingencies. The plan can not be capricious or whimsical but must be grounded in the unwavering, overt, and voiced needs of the residents. The plans must be predicated on the involvement of broad-based public participation. This process has the drawback of being slow, but if done properly most of the deliberation should occur before the funds aze actually awarded. After the awazd is extended the recipient should have sufficient will and community support to implement the project. b. Use of STAR Loan Money Another short-term strategy issue which watrants a recommendation is how to encourage use of the Neighborhood STAR loan money. The Neighborhood STAR Program must requn that when an entiry is awarded grant and loan money ii must use both forms of award. If the participant wants less loan money the grant award must be adjusted down the same rafio. When the Saint Paul City Councii determines the amount of grant and loan mix that will be awarded there should be no changes unless there aze extenuating circumstances. When participants begin to use the money they must be rennbursed in accordance to the mix. In a bid to get loan money out, the Neighborhood STAR Program should also make it cleat that no more money will be awazded to a participant who applies in a later cycle until certain standards of progress have been met c. Multipie Year Development There were two short-term issues highlighted earlier wlrich involve multiple year developments and cooperarive developments in a neighborhood. The mulfi-year developmeats have been occurring through the Neighborhood STAR Program but not in significant numbers. The prograni shouid continue to set a side a designated amount of funding for this type of development. The possible drawback with this development approacfi is that most ofthe applicants do not have the capacity to facilitate a project large enough to require multi-yeaz funding, or if they do, they aze using other funding sources. However, as community organizations and other groups get familiar with the Neighborhood STAR Pzogram and understand the opportunities it can offer them, multi-year development will become a reality. d. Cooperative Development The last short-term issue concems cooperative development within a neighborhood. Cooperative development was identified as an objective for the Neighborhood STAR Program after the program was first established. A cooperative development in this case would be a moderate mixed use development which would include compatible residential and commercial uses. Because of zoning requirements this type of develapment may have strict limits on where it cotild be located. The Neighborhood STAR Program should identify possible sites for tIus type of deveIopment, consult with community organizations, and meet with residents in the area to see if sufficient will e�cists in those neighborhoods to plan and implement cooperative developments. 22 � � , � � � � L� C � � � � � � t� �� e. Neighborhood Pianning In the long run the Neighborhood STAR Program should aim to bring the neighborhoods of Saint Paul together in order to make the highest quality revitalization decisions possible. In order to bridge the gaps the Neighborhood STAR Program should act as a conduit between the neighborhoods. Creating Iinkages and c��cra�ning them will depend on communication, cooperation, and the development of a shared vision. The Neighborhood STAR Program which is a chiefly entrvsted with the opportunity and responsibility to spur revitalization in Saint Paul neighborhoods must identify possible neighborhood cooperation and foster the coordination which is already occurring. An exampie of what is happening in the co�nunity to enable cooperation can be seen in the Hamline-Midway area. Four distinct yet related groups are coming together to discuss a common vision and strategy for the vicinity in the context of the medium- and the long-term. Although these groups (University United, H-MARC, Hamline-Midway Coalifion, and Midway YMCA) aze not faz-flung they represent varied perspectives. The STAR Program should consider the findings of groups like this in order to awazd funds to projects that reflect the interests and concems of larger subsets of citizens than those from a singie neighborhood organization f. Development of New Housing From a land use perspective the vast majority of Saint Paul has been developed. As a result the same development opportunities are not available here as in exutban areas. Redevelopment is often the only oprion for inner city development. Because land in Saint Paul has been used for many yeazs, a significant percentage of underurilized acreage is polluted. The Neighboxhood STAR Program faces a challenge and an opportunity to create new housing options in this environment. Under the Metropolitan Council's "2020 Plan" Saint Paul must have a comprehensive plan. In that comprehensive plan Saint Paul must address new housing oppornznities in order to meet the needs of a burgeoning metropolitan popularion. In one notable project the Neighborhood STAR helped restore the uninhabitable property at 683 Hague Avenue: As a result of that revitalization twelve new housing units in the form of apartrnents are available. A non-profit organization, Project for Pride in Living Inc., manages that renovated property. As the Neighborhood STATt funds grow through sales tax collection and loan repayment, the STAR Pmgam will have the responsibility and capability to tespond to the housing requirements which have been placed on it. It will need to work with private developers and banks to accomplish this gargantuan task. Programs like the Coordinated Housing Investment Project will help establish important relationships between the City and private sector. These relationships will be critical in meeting the Neighborhood STAR Program's community objectives. g. Program Impacts � As stated earlier the Neighborhood STAR Program is a tool to facilitate urban revitalization, but it is not an end in itself. Through its "bricks and mortar" projects it will improve the space in which Saint Paul residents live, but more importantly it will help them enhance the intra and inter-neighborhood � relationships they already have. Moreover it will reinvigorate the relationships between city residents and business people with the construction and lending industries. Akeady there are positive signs that � 23 � the Neighborhood STAR funds are being matched on a Ievel greater than 1 to 1. Perhaps another action that could be considered in the longer-temi wouid be increasing the required match. As stated eazIier this seems to be happening anyway, but it would help maintain the roie of the Neighborhood STAR as a source of additional assistance rather than one of primary assistance. h. Inter-Agency Cooperation T12e last recommendation for tke NeigYcborhood STAR Program in tke tonger-term wouid be to enter into regular discvssions with Parks and Recreation, Public Works, uti&ty companies, and other selected parties about their plans and goals over time throughout Saint Paul. It is important that if the Neighborhood STAR Program eapects projects to solicit neighborhood i�ut that it too is willing to get input from other players including the public. Sometimes impmvements are conducted in an uncomplimentary maaner because parties simply do not talk. The interaction between parties is difficult aY first but will most likely pmvide for the best results and help ameliorate misunderstandings. SWOT Analysis of the Neighborhood STAR Program Strengths: Weaknesses: • Funds can be used for variety of • Program does not fuud project different development types (funds are adminisiration flexible) • Awards are made to a11 geographical • Perception that there is excess parts of Saint Paul regulation and paperwork • Broad base of community support • Recourse • The state legislature approved the tax • Maintenance issue considered only if it generates new City responsibilities • Funding mechanism is pay-as-you-go • Pmfessional staff and support aze available Exhibit 1.11 'rL! i � � � � � � � , f. � � !� � � � � � ' ag - i a� Opportunities Threats • Strong economy • Some organizations aze reluctant to use loans • Realizarion that revitalizarion could • Some project managers do not make help increase residence in Saint Paul their project a priority and in tum lower spatial expansion of the metropolitan area • Some neighborhoods are working • Lunited community involvement in together projects • Role of the STAR Program prominent • Ongoing maintenance of projects not as more responsibility devolves from addressed the national and state levels Exhibit 1.11 continued J. Conclusion In summation, the Neighborhood STAR Program is accomplishing its goal of revitalizing the City of Saint Paul by improving its homes, businesses, parks, streeiscapes, and community buiidings. Although the program is in its eazly stages, it has benefited from the cumulative Irnowledge and experience of its sponsoring department, Saint Paul Planniug and Economic Development. Given the state and locai regulations the program must follow, the Neighborhood STAR Program has been flexible in the manner that it serves Saint Paui taxpayers. The program is and has been committed to improving conditions in all Saint Paul neighborhoods. City officials and PED staff have maintained an open dialogue with Saint Paul residents and community leaders. The program is poised to work proacrively with Neighborhood STAR fund recipients to revitalize Saint Paul neighborhoods. 25 , � �J �� 1 1995 Neighborhood STAR Small Grant Program 95.002 Neighborhood & Senior Citizen Garden GrantAmonnt: $I5,000 , � Aurora/Saint Anthony Development Corp. Description: The objecrive of this project was to install water lines and fencing for three green spaces located at 707 Fuller, 741 Fuller, and 770 University. This project has created two training gardens. The green spaces aze located at 707 Fuller Avenue , and 895 Central Avenue. These gazdens occupy the entire width of the building lots and run the majority of the depth of properties. The garden spots aze fenced in and serviced by water. Raised flowerbeds are located in the improved properties in order to allow senior citizens easier access to ' � � � � � � � ' � ' maintain the plant life. Improvements to two of these lots were completed . Budgetary limitations did not pernut implementation of improvements to a tot lot at 741 Fuller Avenue. Comments: According to Ronald Pauline, the project manager, these gazdens have generated spin-off landscaping efforts in the neighborhood. Mr. Pauline indicated that the training gazdens provide a good environment to learn and share values. The geen areas haue created a sense of pride within the neighborhood residents. Moreover the spaces act as a meeting places that encourage intergenerational intenction. This pmject indirectly serves the entire neighborhood by beautifying the azea. In particular it serves the families and individuals that have volunteered to be part of the training program. The majority of the participants aze African-Amzrican. Fo� Asian families as well as two VJhite families have taken part. The age groups represented aze equally diverse. Contract Compliance: The gardens are located in the prescribed area between I-94 to University and Lexington to Dale. Ali of the participants in the gardening project also reside in this azea. The STAR contract was entered into May 1995. The physical development of the green spaces began ffie same month, and these verdant spaces were completed in 7une of 1997. Mr. Pauline indicated that the STAR funds had no impact on the amount of time in which the project was completed. The STAR funds were used to fence the properties. It was also used to provide water pipes and service to the lots. The money financed the gravel, soil, and lumber that made the landscapmg of the lots possible. The vegetarion for the project was donated. All of the expenditures went towazd 27 , � intended costs described in the contcact. Again the reason that all of the impmvements did not occur � was because the eapense of fhe two Iot impmvements exceeded the original expectation described , in the contract. The project did involve sweat equity. In fact a county program, Sentence to Service, wluch helps � individuals who are in transition fr a criniinal background, volunteered individuat participant's labor for the building of the raised flowerbeds. Although this initial labor was not specifically from the neighborhood, the continued success of tree project will depend on the efforts of vo2unteers from , the neighborhood. �� , � lJ � � � , � L� LJ r z8 � � , � , � , C J � , ' `� •• 95.009 Hamline Midway Greening/Park Accessibility Project Hamline Midway Coalition Description: GrantAwonnt: $14,425 The objective of this project was to increase investment in the area, increase access to Horton Pazk, and foster more stewardslup by using one to one matching gtants for landscaping. The project has two major features: the enhancement of Horton Park and the greening of the neighborhood azound that area. Horton Pazk has been improved with the addition of iwo raised flower beds, three new trees, an additional heavy-duty trash receptacle aud a handicapped accessible picnic table area. The flowerbeds are situated close to the walkways to enable senior citizens and handicapped individuals easier access to the raised beds. This not only allows individuals a better view of the flowerbeds, but it improves the oppornuuty residents haue to plant and nurhxre the beds. The Hamline-Midway Coalirion was not able to put in as many trees as they had intended because the City's Forestry department said that Horton Park had a sufficient number of trees. The neighborhood greening portion of the project was accomplished through grants to 89 residences. As a result of Yhe grants over 200 trees and numerous shrubs were planted. In order to participate in the greening part of the proj ect, residents had to attend a s�+inar which addressed different methods for making the greening possible. � This project helped the coalition make contact with the residents of the neighborhood. It gave the organization an opporhmity to benefit many households in the neighborhood with a moderate amount of resources. The community got more involved as a result of this project. Landscaping ' became a priority to the neighborhood. People began to talk to one another. In fact some friendly competitions arose in pursuit of the most attractive landscape. The project also enhanced the coalition's relationship with the parks and recreafion department. Moreover the project spurred � volunteer activity. Volunteer coordinator for this project, Mazk Granlund, organized citizens to make Horton Park more beautiful and accessible. ' , ' ' Most of the participants are young families. The majority of which are White, but there were some Asian and African-American households which participated in the neighborhood greening. In the Horton Park portion of the project the senior citizens from an adjacent housing shucture played a significant role. Additionally the Boy Scouts made a major contriburion of time, effort, and labor on the raised flowerbeds in the pazk. This project mostly services the residents of the neighborhood, but because of the public accessibility of the park the project could potential reach a wider population. Contract Compliance: The project serves the area from Lexington to Transfer and University to Pierce Butler. The park � and all of the unproved residentiai yards except one aze in this zone. The home outside the azea is adjacent to the boundary of this area. � � � This proj ect has occuned in phases because of the planting season . The contract was entered into on July 1, 1995. In 1995 ten homes were landscaped, in 2996, 40 homes went through landscaping, and in 1997, 39 more had landscaping done. The complerion times varied from one case to other but generally took less than one month. The pazk improvement was begun in 1996. It has not been completed. A sunken tool box and information l�osks will be instalied in the spring of 1998. Generally the budget was used for trees, bushes, planters, a picnic table, and a�ash receptacle. There are a number of reasons why the grazrt is not fully disbursed. First, Forestry would not allow the Coalition to plant more �ees in the park. Second, all participants wanting to get involved in the greeniag project had to attend a seminar . The coalition laiows of eager residents who did not attend the seminat, yet aze interested in the program. Third, the neighborhood is mosfly populated by moderate income worldng families who seem to fia�e trouble ma "m; �;ng the graut. In other words because of the grant match feature one would have to invest a$300 minimum to get $150 maximum grant. Many of the residents appreciate the pmgrant, but cannot or will not use it to its fullest ea�tent. Participation in both elements of this project has been present Uuoughout its implementation. Neighborhood residents have invested sweat equity into this project. Volunteer work has been critical to the success of tUis project. Comments: STAR is too staff intensive to accomplish without allocating pazt of the funds to administration. Homeowner: Joanne Freshwater of 1263 Lafond leamed about the greening project through the community newspaper. She says, "Its great." "There should be more projects like ttus." She thought the reimbursements took longer than is acceptable (2 months). Raised Flowerbeds at Horton Park � 1 � � � ' � •i 95.013 Child Care Espansion & Renovation Neighborhood Honse Association Description: Grant A.mount: $7,309 The objecfive of flus project was to provide space for a day care facility. C1ne room was to be upgraded for youth. A second was to be improved for toddlers. Two other rooms were proposed to be renovated and a food storage azeas was moved. This project converted a space for young children into a child caze room. This modificarion was , accomplished through the addirion of bathroom facilities, fistures, carpet, and the refinishing of woodwork. The second aspect of this project, which was completed, was the consolidation of the food storage area State inspectors had previously indicated that the storage arrangements were not 1 in full compliance with standards. The consolidation unprovement not oniy met state requirements but made operations of the food service easier. ' The expansion and renovation project helped Neighborhood House meet some of the demand for licensed child caze facilities in the neighborhood. With the help of STAR funds the project aiso , ensured that the food served to the children was safe during the storage period. The improvements created employment for 2 part-time employees. This project offers more residents of the neighborhood and lazger community a culturally appropriate environxnent for the care of their ' chiidren. Prospecfive parents who are wairing to enroll their child(ren) in the program feel more comfortable knowing that elements of their ancestral heritage will be honored. Another benefit which may be realized by this pro}ect is that it allows more people to work. In light of low f unemployment and in turn the high demand for employment, these newly available workers will � haue a beneficial impact on the economy. The child caze facility wilI serve 20 children and their families. The food storage aze wiil serve the 2Q new children as weil as serving the current 54 children in the caze facility. The population is diverse. The majority of those who participate are Afi or Aispanic. A few white children aze expected but no Asian children until an Asian teacher is available. Contract Compliance: The irnprovements occurred at the address described in the contract which is 179 E. Robie St.. The service azea for the child care site is the West Side of Saint Paul. The Mississippi River bounds it on three sides, west, north, and east. On the south it is defined by the Dakota County 13ne. Most of the children are from the West Side. A few are from elsewhere particulazly Dakota County. In those cases the families of the children generally had previously lived on the West Side and came back to the azea for child care because it was more culturally appropriate. 31 The comract for the project was signed on 7uly 27, 1996. The implementarion of the project began at that time. All of the capital improvements were completed by Jattuary 1997. On July 17, 1997 the state of Minnesota inspected the new child caze space and on flze same day approved it. The STAR funds aze fully disbursed on flus project. The money was entirely used on the renovation of the child care space and the consolidation and upgrading of the food storage area. Particulaz reimbursed expenses were counter tops, paint, cazpet, windows, a smoke detector, bathroom fixtures, wire shelves, and a walI mirror. The community did donate its time to the complerion of this project. The iTnited Way helped with the volunteer process. It introduced Neighborhood House to volunteers from companies in the community such as 3M, UPS, and Ecolab. The volunteers assisted with much of the e£fort and particulazly helped in restoring the woodwork. Comments: Ms. Fuller, the pmject manager, thought that the funds from the STAR prograui should be more freely and broadly applied to administration costs. Neighborhood House wauted to adxninister tize program by organizing the different jobs necessary to complete the project. They wanted to do this to save money that a general contractor would typically charge. Another concern that she raised was with tiie guidelines. She had a sense that they were being changed midway fluough the process and that they were heing made to apply retroac�ively. She understood this was a new program, and that it had some ctifficulties to work through, but she did not ttiink that changes midway through were fair or efficient. 32 � � ' lJ � ' , � � �g�l�� 95.015 Northeast Business and Development Center Northeast Neighborhoods Development Corporarion Description: GrantAmonnt :$15,000 The objecrive of this project was to cteate a space for the operafion of the neighborhood business association and a police substation . The storefront at 1545 E. Maryland Ave. was gutted and renovated. There were problems with water damage in the space. The problems were intemal and external. In order to ameliorate the situation the plusnbing was upgcaded, the rear door was weather- proofed and the roof was repaired. Next, partition walls were configured and a front service desk, kitchen and handicapped accessible bathroom were added. This project has allowed a po&ce officer to be stationed in the storefront. It has pernutted the Northeast Neighborhood Development Coiporation (NENDC) to be more accessibie and visible to the community. The storefrant provides space for community groups to meet and also is being used as a place to teach the English language to Hmong-speaking residents. The site also functions as an e�ibit area. Artwork by community youth has been displayed as well as design plans for the new Hazel Park NeigJiborhood Recreation Center. Although the new storefront is not verifiably associated with a reduction in crime in the neighborhood, it has in some cases reduced police response times. This is also enhanced by the fact that the officer starioned at NENDC has a bike . This more flexibie mobility option is available because the officer can store the bike at the center. The residents of the neighborhood are indirectly and in many cases directly serviced by the new center. The business associa6on itself is also served. Contract Compliance: The area served is coterminous with the projected service area. The area is north of I-94 and east of 7ohnson Parkway to the respecrive north and east borders of St. Paul. The Neighborhood STAR contract was signed July 25, 1995. The proj ect started August 1996 and ended December 1996. The STAR funds were used for renovation of the properiy. The funds were used fully for this effort but they may not haue covered as many needs as first expressed in the contract. There are records and receipts in the central file which verify the expenses incurred for this project. The reimbursements were for plumbing, elechic, generai remodeling, drywall, insularion, and carpentry. Contractually it was indicated that 300 hours of the sweat equity wouid be contributed to the project. According to Ms. Swenson, the amount of sweat equity donated surpassed 300 hours, but she said t�C� they were not given credit for the excess. Volunteers pmvided most of the labor. The children who volunteered created a mural for the wali of the center. Comments: Karen Swenson, the neighborhood association executive director, indicated that the STAR was important and helped in the pmcess of raising other funds. She also stated that the STAR Program is not useful the way it is being nm. She stated that it is not fair to all sections of the ciry. Case in point Ms. Swenson said no regular STAR projects have been approved in the Northeast section of the city despite need, merit, and a request for money. She said the niles changed after the fact. For example she submitted all the appropriate paperwork for a reimbursement which she received but than the City requested more paperwork. She said she fias no intention of completing the unnecessary additianal paperwork. She indicated that the additionat requirement was bmught about when Norwest was asked to monitor the projects. 3he said they changed the plan and that she shouid not be held responsibie for these additionai requests. Lastiy she thinks that it is initially unclear who holds the authority to make decisions about what can be done within the project. The STAR program encourages you to contact your account officer but they aze not empowered sufficiently to be of significant assistance. The power xesides in the coordinators. Ms. Swenson believes that the officers should be empowered. 3he sait3 that the Neigltborhood STAR coordinators shouid not assign accounts. Perhaps some other arrangement shouid be reached. According to the Neighborhood STAR Program's procedures the project accounts are assigned to the officers by PED management and not the coordinators. Service counter at Northeast Business and Development Center 34 , � [J �� l� j� .i 95.016 Open School Playground Independent 5chooi District 625 Description: Grant Amonnt: $10,000 The objective of this project was to create a playground for a public school which serves students k-12. It was planned to provide a safe and well-constructed area for the chiltken at the open schooi to play. The majority of this pmject has been implemented. Previousiy the Open School had an empty field ' available for outdoor fitness and recreation. Because of this project there are more acrivities in wluch the students and nearby residents can engage. The enhanced piay area is located on the north west comer of the properry at 90 Western Avenue South. The playground has an eight seat swing � set, two siides, and a dome shaped jungie gym. All of the equipment sits on a base of sand which is surrounded by lumber. Additionally a fuli size basketbali court with two regulation height goals , has been added for the older children. Between the playground and the basketball court a foursquare court has be located. There are srill plans to install two more basketbali goals and four park benches. 1 As a result of this project the Open School has been able to augment the variety of opfions offered thorough its physical fitness program. Indeed this variery has helped improve the program. Additionaliy the piayground has been a welcome expansion to the schools recreation facilities. It ' aliows children to experience improved recess activity. The neighborhood has also been impacted. There are not any playgrounds within ten blocks. This play area allows all segments of the neighborhood convenient access to a well-equipped recrearion area. ' This project serves the Open School and the surrounding neighborhood. Other educational and care facilities make use of this improved space. Jennifer Diederich, the project manager, said she knew ` that the neighborhood Montessori, the Salvation Army, and a few day care centers use the Open � School Playground. In addirion numerous residents of the neighborhood use the recreation facilities. � The playground serves 300 kids from the Open School, 40 from Montessori, and about 15 children from community day care centers. Contract Compliance: Ms. Diederich indicated that the playground serves the westem edge of downtown Saint Paul. She said its service area extends from Kellogg to St. Clair and from I-35 to West 7th Street. The project was implemented on the site it was originally proposed. The STAR contract was sia ed in August 1995. The project began in September 1995 and is expected to be completed in October 1997. The STAR funds were used to purchase lumber, two goose neck basketball poles, 4 backboatds, sand, a jungle gym, and the asphalt basketball court. The funds have not heen entirely used. Upon. 35 looldng at the reimbursement forms far this project it appears that the section for sweat equity was not completed properly. When this component is added in, the project valne increases and the amount of re"unbursement possibly increases. As of September 1997 a STAR coordinator worked with neighborhood staff on the problem. As soon as the match and reimbursement request is submitted the project account will be fully eacpended. This project involved at least a 30% sweat equity match from the Open School and its pazents. The volunteers essentially installed atl the features offhe playground with the exception of the basketball court and the aggregate field. Comments: Ms. Diedezich said that the match was tough. She also said that funding the pmject was difficult in light of the fact that the STAR program reimburses rather thau advances money far the project . Fund raising was difficult for the Open School. Everyone was burned out from the eaperience. Ms. Diederich not only had to ask pazents for their financial support and time but also their labor. After all this she does not think she was given full credit for all the labor that the parents supplied, and she had valued their labor below the acceptable hourly amount of $ l 0/ttour. Tn order to make the process cleazer and faster Ms. Diederich thinks there should be a book available that guides one thmugh the process step by step. She said the book could have cazbons in it so records could be kept for internal and external purposes. 36 Open School Playground 1 1 , � ' I_ J ' � ' ' �$- �a� 95.017 Reinvesfing in Tomorrow's Communiries People's Network of Minnesota Description: Grant Amount: $15,000 The objective of this program was to provide up to $3,000 grants to homeowners in the Railroad Island Area. This program has not gotten under way. The Peopie's Nerivork of Minnesota (PIVNn distributed flyers in October of 1996, but only five parties made serious inquiries into the project. The current project manager, Vang Moua, said there were a number of reasons he thought that progress had not occurred. First, the residents do not want to take out loans to leverage the grant especially if they must use their house as collateral. Another impediment is that many residents have hi� debt rarios, so they cannot get the leveraging loan. Srill another barrier has been the fact that some of the interested parties were senior citizens and did not have sufficient income to take out a loan for the necessary matching portion of the program. Mr. Moua believes that the size of the individual allotments per house described in the contract of $3,000 needs to be revised to $S,OOQ. Ae thinks this amount will be more attractive to potential participants. The final hold up has been the bid process. He said many of the interested parties think the bid proposals are high, and they continue to search for lower cost bids. Addresses of some potential participants: 745 Bradley St. 765 Jessie St. 585 Payne Ave. Because no improvements have taken place as a result of the STAR grant project, Mr. Moua said there has been no achievements in this project nor any unpact on the larger community. Cunently nobody is being served by this ptogram. The few potential recipients are families that occupy the targeted homes to be unpmved. In ]ate July 1447 the PNNI will distribute flyers again to inform the neighborhood about the funds available through the STAR grant to the PNM. Although nobody has been served, the PNM is still targeting the geographic area that it proposed to serve in its contract. The area is Bush and the railroad on the north and west, Upper Swede Hoilow on the east and 7th St. on the south. There is no progress schedule as such because no improvements have been made or even started. Mr. Malo believes that if the allohnent per house is increased that it will generate more interest in the program and in turn something will be accomplished. STAR funds have not been utilized yet, but Mr. Malo believes this will change after the n�i flyer campaign. 37 �l Mr. Malo believes that recipient participation in the improvement will be limited because many of ' the interested parties are elderty and not able to exert themselves. Other hindrancas to participation � aze lack of volunteers and lazge amounts of time demanded from potential recipients. LJ ' � ' � � , � � cf�'.? ' i �i lj � � ,' � � � ' � q�- cag 95.019 Riverview Area Streetscape Design Improvement Riverview Economic Development Association Description: GrantAmount: $14,000 The objective of this project was to restore murals and 20 metal art fabrications in Riverview. The project was to compieted using the skills ofyounger peopie with the help of local artist. The project has restored five murals. These murals are over 20 years old and depict Latin American themes. Additionally the project included the design, creation, and placement of 20 signs which idenrify and celebrate the Riverview community. The signs display the sun over the Mississippi River. Two of the original three artists participated in the effort. Another two mentor artists were added to the project. Each mural was assigned two students. The students acted as assistants in the restorarion effort. The students were selected from a program called Teens Networking Together (TNT)• Anne Briseno, project manager, said that this project has acted as a catalyst for other projects. Part of the spin off was a new mural on the �terior wall of El Burrito facing State St. She indicated that the project has retained and restored the continuity of the community. The project has instilled pride in the community. There have been no cases of vandalism or theft connected with this project. This project services the entire community. Its benefits are visible, accessible, and convenient to experience. As far as direct impact, the student population seemed the most fully served by the project since it allowed and solicited youth involvement. Ail the peopie directly involved were from the West Side of St. Paui. Approximately 50% were Hispanic. ContraM Compliance: The area served was coterminous with the small area plan. The boundaries aze Concozd at the entrance of Highway 52 on the south to Wabasha at the north end and Wabasha at Plato to Wabasha at Concord St. and Robert at Plato to Robert at Concord St. The Neighborhood STAR contract was signed on July 25, 1995. Within 5 weeks the project was complete. The STAR program had no effect on the rate of complerion. The actual budget was used for equipment, brushes, the signs, artist fees, and the charge for the Deparlment of Public Works to hang the signs. In particular it cost $90 per sign for installation. The central file does show a reunbursement request form, and all the necessary receipts. This project involved a significant amount of sweat equity. 1`he logo for the signs was developed by one of the artists. The designs were presented at a public meeting and a vote for the best design was cast. 39 ' 19.95.022 Grand Avenue Summit Beautification Grand Avenue Bnsiness Association Description: GrantAmount: $I5,000 ' The objective of tkus pmject was to ereate a small pedestrian plaza and meeting azea on Grand Ave. AdditionaIly a bike rack was to be pIaced along Grand between Oakland and Ayd Mill. This project has been implemented. Fifteen szngle and double bike loop racks have been installed on Grand belween Dale and Le�ngton. Additionallq a small brick plaza has been created at the corner of Graud and Victoria with benches and plants. Some planters have been placed in front of businesses along Grand as part of this project aLso. The community and businesses have been positively iffipacted as a result of tltis project. First the impmvements of this project make the area more attractive and conducive to commercial actavity. Second it has provided safer and more abundant bike parldng. In an area with limited parking this adc3irion helps make the commercial strip more accessible . Becavse of this project the population of the azea is better served. In particulaz it helps cusfomers, business owners, emptoyees, residents, drivers, and bicyclists. Depending on the day and time of year this corridor serves 5,000 to 30,000 people a day. Contract Compliance: The placement of fhe bika racks followed the designation in the contaact. All improvements were to be located between Ayd Mill and Oakland. It was originally proposed that alI the benches be distributed along Grand Later it was reconsidered and the benches were placed in the brick pIaza. The contract was signed on October 27, 1995. The work on the project began in November of 1995. It was completed by November of 1996. The project took three months longer than anticipated. There were a number of reasons why the project took longer. First, tke lead volunteer had a serious illness in the family. Second, there was some difficulty getting multiple bids. Another delay was the bike rack pernut procedure of the public Plaza at the comer of Victoria and Grand I� [�17 �. �� l�B � works department. Beyond these delays the Gtand Avenue Business Associafion (GABA) had trouble soliciting donated labor and retaining key staff: � The STAR funds were used to buy five benches, fifteen bike loop racks, and bricks for the squaze on the corner of Grand Avenue and Victoria Street. � Most ofthe work on this project was contracted out. Sfill volunteers did donate their labor in order to meet the adxniuistrative requirements of the project. � � l�� 41 � 95.024 Thomas-Dale Handyman Fix-Up Project Thomas-Dale Biock Club Grant Amount; $I5,000 � Description: The objective of this project was To identify and repair the exteriors of owner occupied senior citizens' homes. The repairs were to be limited to painting and maintaining the safety of resident access to their homes. This project has provided safer access and aesthetic improvements to 12 homes in the Fmgtown neighborhood. A.s a result of the work seven retainiug walls were installed, a handicap ramp was added to the home of a physically challenged individual, stairway accesses were improved and in some cases replaced. The addresses of the properties aze as follows: 803 Thomas Ave. 597 Charles Ave. 967 Chazles Ave. 390 Edmund Ave, 809 Thomas Ave. 958 Sherburne Ave. 653 N. Westem Ave. 550 Edmund Ave. 844 W. Miunehaha Ave. 840 W. Minuehaha Ave. 682 Westem Ave. 81 Z Van Buren Ave. The proje�t has helped motivate the residents to improve their homes. Johnny Howard, the project manager, said, tlus project has changed the `whaYs in it for me attitude that was in the neighborhood." Now people will not only work to impmve their own properry, but he tlunks overall volunteer activity is on the rise. There is a spin-off effect, and it can be seen throughout the neighborhood. One resident adj acent to 809 Thomas Ave was so inspired by the improvements fhat she stazted landscaping her yazd. Another grant recipient Lily Hollisworth says she Iikes the change that the retaining wail has made. "It looks better, and it is safer." Senior citizens are primarily the recipients of the grant funds through this handyman fix-up project. Seven of the participants aze Wlute, three aze African-American, and two aze Hispanic. Contract Compliance: All of the improvements occurred between Westem Ave on the east, Lexington on the west, Fierce Butler on the north, and University on the south. This is caterminous with the contractually designated zone. The STAR contract was entered into June 30,1995. All the progress on the improvements occurred within three months, from June 1996 to September 1996. Because the STAR program issues � 42 � � � � �� reimbursements rather than prior payments, it slows the process of getting the necessary materials. The Thomas-Dale Block Club is already strained. When they provide up-front costs out of their program it jeopazdizes their other services. Addirionally because they can oniy divert a small poriion of funds away from the club the process of neighborhood improvement is slowed because after complefion of the first improvement they must wait to get reimbursed before starting a second home improvement. � The STAR funds went entirely to unprovements wluch make the residences of the Frogtown Area safer. Through the project, movement in and out ofthe homes was made easier. As a result not only were the resident yazds safer but so were the sidewalks. The new retaining walls will keep excess � debris off the sidewalks and will provide for safer passage. The level of public participation has been significant through this process. The Thomas-Dale Biock Ciub has organized community participation in the program. Volunteers haue helped to get the projects completed. Because of this feature of the project, more improvements have been able to � occur despite scarce resources. � �� L] 43 � 95.026 Stutzman Block Initiative Upper Swede Hollow Neighborhood Association Description: The objective of this project was to renovate the Stutzman Bldg. The monies were to unprove its blighted appearance. As a result the project was to provide commercial space, residentiai rentai units, and the Upper Swede Hollow Neighborhood Association office. (I7SHNA) This project included the renewal of part of a commercial space in the Stutzmann Building at 725 E. Seventh St. The commercial space is currently leased to the Swede Hollow Cafe. Tke first phase of rehabilitation involved the gutting of what was a residenrial unit to make way for a restaurant. In thai pmcess most ofthe features of ttie space were replaced such as the electrical system, the air conditioning, the store front, the kitchen, and a bathroom wluch complies with ffie Americans with Disabilities Act. Tlus rehabilitation project kelped provided the Upper Swede Hollow Neighborhood Association with an opportunity to demonstrate to the neighborkood that speciaiized, nonfranchised commercial activity is viable in the Dayton's Bluff Area. It permitted tke Association a chance to let local residents see how historical preservation is possible and even useful. It also generated two fu11 time and 2 part-time positions. Residents of the neighborhood demonstrated, as well as, witnessed the commercial strength of their neighborhood. Cazol Cazey, the pmj ect manager, stated that there were spin-off benefits. For instance a redevelopment project is happening near the cafe at the intersection of Maria and Sixth. Another spin-off is that the cafe is using some ]ocal inputs such as Toasted Bread products and produce from gazdens in the neighborhood. The cafe serves a diverse population. About half of the customers live in the neighborhood. They make up the majority of the non-meaitime transactions. The other half is generated by people who work or go to school in the area. The food service facility functions as a meeting place and a forum for casual social exchanges. Contract Compliance: The STAR contract was entered into on JuIy 26, 1995. This first phase, the initiative, started April 1996 and was completed in July of 1996. This was withiu the period described in the coniracT. Tke 1995 sma11 STAR funds were used to unpiement the capital improvements to the property described in the first paragraph. Scope of work statements and receipts aze present in the centrai file. They indicate tl�at STAR funds were used to pay for piumbing, etectrical, heat and air conditioning, and other general contracting eapenses. This project match involved $3,630 in labor and $3,000 in goods and in-ldnd services. Much of the participation came from Sentence to Service which uses the labor of criniinal offenders to improve tfie community. GrantAmount: $15,000 , � � � � � � � i� �� Comments: Ms. Carey thought the smali grant process was easy. She appreciates how the STAR Board spreads the awazds throughout the city. She tiunks that because of this arrangement that her small applicafion are more successful. Ms. Cazey also had a concem about the amount of time it takes to get a reimbursement. She said that it took over 60 days to get here first reimbursement. In her case it was all right because the project had interim financing. � Swede Hollow � Cafe � � � � � 45 f � 95.027 Walker-West Music Academy Music Garden WaIker-West Music Academy Description: GraufAmouu�$I5,000 � The objective of this proj ect was to create a small gazden and a performance azea. STAR funds were designated for landscaping, earthmoving, and lighting/electrical. This project has been unplemented. The building lot to the west of 777 Se1by has been developed into a music garden. Formerly flvs lot was occupied by a deteriorated structure. The properiy went into taac forfeiture, and the city of Saint Paul assumed control. The city proceeded to raze the building on the property. The city has extended a rent free 10-year lease to the Walker-West Music Academy on this adjacent forfeited properly. In the front portion of flte property there aze perennial shntbs and trees which line a path and four cutoff coves. These circulaz coves are being developed in order to set up musical instruments according to their fanuly type. In the reaz of the lot the area has been maintained as open space in order to stage concerts. The space is partially occupied by a raised wooden deck. The stage was not purchased using STAR funds. There is no lighting or electrical service at the music gazden. Because of ttris project the musicians at the academy have a place to play outdoors. Mr. West, the artistic director, is hopeful as tfie garden and stage are improved that a musical series will be established over the summer season. The community has been provided with a beautiful area to enjoy the gospel aud jazz music of the academy says West. The gazden serves the members of the academy as weIl as the local community. The academy's total enrollment is 500. Mr. West said although the community now appreciates the garden from a distance better accessibility will be developed into the garden and actual direct use of the garden area wi11 increase. Contract Compliance: The green space was established on the Selby lot as described in the Neighborhood STAR contract, Most of the people who use the garden live or work in the area between downtown on the east, Lexington ott the west, I-94 on the north and Grand on the south. The contract was entered into October 1, 1995. The work was started and completed September 1995. Nothing hindered the rate of completion. The project was completed within the contract time specifications of 8/1/95-1 Ll/95 but it appears that the stage landscaping set ta be fmished by 6/1/96 never occurred. The STAR funds wera eannarked for the plants, design, landscaping, and paths. .,, � � � q� � la� There was volunteer labor provided by academy members. Initially 35 members volunteered to assist with the project. Another 20 volunteers showed up that were not scheduled. Beyond volunteering rime and labor some participants volunteered to provide lunches for everyone. � City staff requested paperwork for reunbursement for ttus project several times. Mr. West attributed the delay to the fact that they did not have enough administrative staff, and that they lost the staff member who was working on this project prior to the compietion of the paperwork. It was also � expressed that the effort to get matching funds was difficult. Mr. West seemed to tl�ink that much more work was necessary to make the garden truly useful. First, he thinks that an entrance shouid be made from the parking lot of the academy into the garden. Because of elevation differences a set � of stairs or ramp would be necessary. Second, he thinks that white lights should be run through the trees on the western side of the property. Third, Mr. West believes that a retractable cover should be added to the stage to keep the sun out of the musicians' eyes. Lastly, the artisric director said that � seating is necessary for concerts and should be added to the open space in front of the stage. � � � � 47 �l 95.030 WORC on Bikes Workers Organized to Regain Confidence Description: The objective of this proj ect was to renovate space in a house to serve as a bike shop. Its objecfive was to place bikes on the street for the community of use. This project is achieving a goal of teaching work habits to young people in the Frogtown neighborhood. Currently 12 young people work at the bike shop, They are leaming to repair a wide variety of bicycle types. Additionally they are leaming other aspects of the business such as sales, inventory, customer service, and labor nkwagement. During a visit to the shop, all ofthe participants were working in an indixstrious and disciplined manner. The project is meeting its objective of training young people for succeeding commercial opportunities. Two of the former bike shop workers have gone on to work at commercial bike shops in the azea. Physically the building has not been greatly renovated, but they ha�e it functioning pmperiy for this designafed use. They have fout repair racks for the bikes, a long fhe walls they have racks to store bikes, a service counter, a cash register, numerous bikes, and the necessary repair tools. Internally the project has allowed the participating youths an opportunity to develop their talents. It has provided bikes to the communiry at a reasonable price. Moreover the project has placec3 yelIow bikes in the neighborhood in order to increase mobility and decrease the rate of bike theft. Its presence is positive in the neighborhood. There are frequent cases where a child will accompany a guardian to the adjacent supermarket, an@ the child will end up visiting the shop while the adult is shopping. Beyond offering this unique opportuniry to develop young peoples' tatents, this shop provides affordable bikes and service to this less affluent neighborhood. The people served are numemus. They not only include the customers but also the workers. The customers and workers are East Asians, African Americans, and Whites. The zone served is Grand Avenue to the railroad and I-35E to Lexington. Contract Compliance: The project to convert the space at 749 N. Milton into a bike shop started in January 1996 and was completed and opened in May 1996. 17us happened with private funds which can be reimbursed with STAR fiznds. Tfie Neighborhood STAR contract was entered into July 26, 1995. The STAR funds haue not been utilized directly because they have not been disbursed, but according to Mr. Williams the reimbursement request had been mailed to the city in 1996 and they heard no retum response from PED. I advised them that the paperwork should be resubmitted. As of August 29 no reimbursement request had been received from WORC. PED staff sent the appmpriate request form with offers of assisYance but have gotten no response. GrantAmount: $3,180 � � .; �� f�8 The neighborhood has been involved with all aspects of this project. The customers and workers � come from the neighborhood. Additionally the Center for Employment Training (CET) at the local high school has given assistance to the program. � The prograui director, Andy Williams, seemed positive about the STAR program despite not receiving any reimbursements. � � � � � � � � 1 .. �� 95.031 The Espress Bike Shop The Youth Express GrantAmonnt: $10,340 � Description: The objective of this pmject was to create a bike shop that would provide the community with physical unprovement, economic development, and opportunities for young people. STAR funding was designated for renovations to the shop. The bike shop project has been fully implemented. An abandoned service station at the corner of Snelling and Marshall, 234 N. Snelling, has been converted to a bicycle repair and sales store. The store is chiefly staffed by young people ages, 1S and 16. The space is leased from Liberty Bank at a nomivai monthly rate. According to the project manager, Randy Treichel, the former gas station was a disaster. Youth Express gutted the buitding. Tlris was necessaty because of water damage and years of acciunnlated grime. The original building kad an office and two garage bays. The refiubished building maintained this same office space, converted one of the bays to a showroom, and the other bay to a repair shop. At this site, discazded bicycles aze restored in preparation for sale and customer bikes aze repaired. Through this project Youth Express has been able to offer young people an opportunity to leam general and more technical job skills. T'he skill azeas that the bike shop tries to build aze: repair, accounting, sales and customer service, advertising, and business administration. According to Mr. Treichel the strength of tYris project is the fact that each of the young trainees gets e�tra time and direct attenrion from staff. This is something that most entry-level service positions do not offer. The efforts wluch aze invested in the young participants not only make them self-reliant and assets to the labor force but more complete citizens. The neigilborhood has aiso benefited as a result of the establishment of this bike shop. The shop has found a niche in the low-end bike sales and repair mazket. The community is reaping the benefit noY only through the quality service provided at the store, buf through the training opponunity that the young people are getting. The vacant properry that the shop sits on is no longer a drain on the avenue. In fact a driv�tUrough coffee shop has been set up in the parl�ng lot. Activity like this recoafirms the positive impact that this community bike shop has. Over time there have been 25 trainees in the program. Currently thete aze 12. Of that number ten are ma1e, and two aze female. Racially/etanically seven are African- American, two are Wlute, one is Hispanic, one is Asian, and one is not reported. Most youth participants meet federal at-risk criteria and qualify for wage subsidy through the St. Pau] Center for Employment and Training. Participants who do not qualify aze paid from Express Bike Shop sales. The project has served many people, most of wkom aze living in Saint Paul. Since its inception the shop has restored over 700 bikes for later sale, and repaired numerous bikes for atea residents. In fact repairs cunenfly comprise a larger portion of the revenue generation than do sales. � G�1] � � _� � � � � � � � � � � �S- la� Contract Compliance: Ttie bike shop is located at the site agreed upon in the contract. It serves Distact 13 and sutrounding azeas. The Neighborhood STAR contract was entered into July 26,1995. Construction for the commercial rehabilitarion began in April 1945 and ended Iune 1995. The Neighborhood STAR Program's process did not unpede the progress of the development, yet the cyclical nature of the program made it more difficult to access funds eariy in the construction season. The STAR funds specifically paid for sheet rock for the walls, elechical work, windows, and interior and exterior windows. The central file verifies these reimbursable eapenses. Other work on the site was conducted by the current owner and the former tenanYs parent company, Amoco. The owner, Liberry State Bank, repaired the roof, and Amoco purged the azea of contaminants. According to Mr. Treichel the roof is leaking again due in part to unseasonably large amounts of rain. He is presently attempring to get funding to properly repau the roof. There was community involvement during the unplementation phase of this project. Axea youth and others cleaned and gutted the vacaterl gas station, They also painted the interior and exterior of the buiiding. Time and materials were donated by local businesses. Comments: Kurt Oldham, store manager, indicated that this venture aliowed him to use his college majot in education to train youth in meaningful ways. Because tranung is on the job as we11 as off Mr. Oldham can guide the participants until both he and the trainee feel confident that the requirements and skills of the job are well understood by the young person. Falaq, an associate, said that he liked the environment at the shop. Although his favorite job at the shop is sales, he also gets something out of leaming and doing all the different jobs. Falaq had worked for Youth Express during the suminer of 1996. He worked in the Youth Express lawn care business. Because of his commihnent and iniriative he was invited to be a trainee at the bike shop, and he gladly accepted. He said this job allows him to learn more things, and he likes that. A1 Martin, assistant manager, said he found out about the bike shop opporhuxity after recently coming back to Saint Paul . A1 had been out of town for a while, and he wanted to work with bikes and youth. This position has given AI a chance to fulfill that goa1. 51 � � � � � � � � q�-ia� 1995 Neighborhood STAR Grant and Loan Program 95.10A Aesthetic Uplift and Senior Citizen Assistance Anrora/Saint Anthony Bevelopment Corporation Description: Loan Amount: $100,000 The objective oftlus program was to provide approximately lO loans up to a maximum amount of $15,090 at 2°!o interest for exterior nnprovements between Dale and Crrotto / University and St. Anthony. This program has improved four homes. The nnprovements have been primarily to the exteriors and include new roofs and porches. Each of these improvements has been impiemented. An additional home improvement is pending. The project will unprove at least five more homes, and the program manager, Ronald Pauline, is pursuing that currently. The addresses already served are: � 649 Aurora Avenue 647 Fuller Avenue ,� 655 Central Avenue 713 Saint Anthony Avenue � � � According to Mr. Pauline this STAR project has stabilized the neighborhood housing market. It has enabled the residents to make an invesiment in their neighborhood. This project is serving four households directly with the improvements. The participants were characterized by Mr. Pauline as long term residents. Atl are African-American. Contract Compliance: Every home that was assisted was located in the contractually designated eight-block area. The boundaries of the area aze Dale on the east, Grotto on the west, University on the north, and St. Anthony on the south. The STAR contract for ttris program was signed on March 1, 1996. Each of the improvements had a different rate of completion. On average the prepazation process for each amprovement was four months whereas the speed of construction and complerion was about 3 months. The STAR funds have been used for facade improvements. Aithough the entire allohnent for this STAR project has not been expended, Mr. Pauline says the funds will be e�austed by Mazch 1998. 53 The majority of the work has been done by contractors, but a few of the unprovements involve sweat equity. Comments: Mr. Pauline thought that administrative funds should be a�ailable as part of a STAR award. He also believed that tke City's servicing agent, Norwest Bank should be different. He tliinks that Norwest Bank should not directly receive the interest and priuciple. Besides charging fees for servicing the loans Nonvest may be benefiting in other ways. This program should mostly be dedicated to benefiting the neighborhoods. John Allen, the resident at the improved property at 649 Aumra Avenue, said the STAR Progratu is a great oppomwity for the neighborhood. It needed some spmcing up. 54 � , � � � � � � � � � � � � � �' i . i 95.113 Dayton's Blnff Neighborhood Housing Services STAR Purchase Program Dayton's Bluff Neighborhood Honsing Services GrantAmonnt: $9Q078 Description: The objective of this program was to provide gap financing to rehabilitate owner-occupied homes. The loans were not to exceed $15,000 or 120% of the appraised value after the renovation. The foYm of the loan was designated to be for 10 years, forgivable, and deferred. Dayton's Bluff Neighborhood Housing Services (DBNHS) has financed and rehabilitated five homes. Another home has been approved for gap financing a decision on the finai home is still pending. Besides marketing this program directly, DBNHS used real estate agents as a link in the effort to inform the public about the program.The agents attended a seminar which helped them understand the program and its requirements. Two of the unproved houses have been made possible through the marketing of real estate agents. However the primary contact point has been through DBNHS's loan outreach. Three of the rehabilitarion projects were less than $20,000, and rivo were more than $2Q000. Two of the shuctures went from rental status to owner occupation while another went from vacant to occupied. The completed homes are: 1016 Euclid 663 East Fourth 915 East Fourth 853 Mar aret 737 Wilson The project has given DBNHS a tool to service the community through the gap financing provided by the STAR funds. Because of the limited scope of the project and the fact that other housing program activities were taking place in the same azea as these projects, James Erchul, project manager, said he was uncertain as to the degree of spin-off benefits that could be directly atiributed to the 5TAR Program. Mr. Erchul aTso said that the success that his housing service has had enabled it to be selected as a participant in the Coordinated Housing Inveshnent Prograui (CHIP) STAR project. The DBNHS project has served five households, To this date all of the participants are White and are not seniors. Contract Compiiance: Ali of the recipients of STAR funds were within the projected area of Johnson Fazkway on the east to Mounds Boulevard on the west and Mississippi River Bluff on the south to the Butlington Northern Railroad Corridor on the north. The contract was signed in March 1996. It is set to expire in Mazch 1998, Most of the projects have been accornplished during the building season of 1996. Each project is taking about three months. One of the projects on Fourth St. was delayed because the proj ect was waiting for a custom door in 55 order to comply with the reqnirements of the heritage preservafion district in which it is located. The STAR program ffid not affect the rate of rime that the projects took. Funds were used for facade, electrical, and plumbing improvexnents. The facade improvements included ruofs, porches, windows, and siding. Owner's sweat equity was not aliowed during the construction work because the first mortgage lenders did not want to allow it due to the inherent risks involved. Comments: Mr. Erchul believes more of the funds in the STAR progratn should be atlocated as grants. Moreover the size of the gants should be increased. This would allow the progam to more meaningfully impact a target azea. He aiso ttrinks that tfie loan funds could be set up more fle�bly. The temis of the loans are too stringent. When he considers the regulations that aze placed on city monies, he believes that any benefit from lower interest rates is mitigated significantly. Refurbished Home In Dayton's Bluff �� t� 45.115 Payne Avenne Commercial Gateway East Side Neighborhood Development CorQorarion Description: Loan Amount: $80,000 The objective of this program was to provide low interest loans for interior improvements, facade grants, rent forgiveness, and redevelopment of blighted building. This project has not been implemented. During the 7uly 1997 STAR interview with East Side Neighborhood Development Corporation (ESNDC) the amount and extent ofproject preparation was uncieaz. Mike Anderson, the director, indicated that the project will be executed as set forth in the contract description. Mike Anderson said the STAR program was a welcome addirion to financing options available to non-pmfits. He said it was a useful program that enhances ESNDC. For the lazger community STAR has renewed confidence. The population who is eapected to be served includes an Asian, a Hispanic, and 7 White applicants. Of those applicants 5 are 50% above the poverty line, 3 aze 50%-80% above the poverty line, and i is 80% or more above the poverty line. Contract Compliance: The geographic area served has coterminous boundaries with the region set forth in the contract. The � area is Maryland on the north, Arcade on the east, the Burlington Northem Railroad on the south, and Payne on the west. � Mike Anderson did not offer details on the completion fime of the project but as of 3uly 1997 nothing has been completed as a result of the funding of the ESNDC Payne Avenue Commercial Gateway project. The fact that over 95% of the original loan awazd has not been disbursed is � because ESNDC's staff believes that there are more agreeable incentives offered through the State and other government programs. The $1,200 of STAR funds that had been used were used on a fee. The reason that this proj ect has not been implemented is not only the amount of interest charged, but �; according to Mike Anderson under the current STAR program CDCs such as his must take responsibility for the repayment of the loans that they provide to individuals and businesses. He said � if a business defaults on the loan, it becomes the responsibility of the CDC to repay the loan. The CDC has no assets to speak of and has no ability to make good on the obligarion. LJltimately the characteristically high risk of the business loans and inability of the CDC to back them up causes I the CDC to avoid using STAR loan funds. He felt that the terms of the 3TAR loans generate disincenfives. He also said that he had heard that the progtam was set up in a way that would enswe failure. Then pethaps more of the money would go to the civic center project. Finally Mr. Anderson � thought that the city should assume the risk for the loans ESNDC makes. 57 � In regard to the STAR program generally Mr. Anderson thought: • it should be more focused on commercial development • stimulate the neighborhood commercial markeY � � • operate more like a bank yet respond to all sections of the city fairly, � be more flexible about project changes and yeaz round access to funds(limit or eliminate cycles)make it a continuous and continuing program • make funds more attracrive by creating better terms and incentives � • reduce the liabilities potentially visited on intermediate organizafions like CDCs. � � � � � � � � � �� m � � � � � � � � � � � � lJ 9g- i ag 95.116 Strong Neighborhoods=5afe Cities East Side Neighborhood Development Corporation Payne/Phalen District 5 Planning Council Description: Grant Amonnt: $10�,000 Loan Amount: $ 35,000 Seed Capital: $ 25,000 This project had three components. The first was home improvement grants. The second was commercial loans. The last component was the construction of a gazebo in Sue's Park. This project has been partially implemented. One business was assisted through the seed capital fund program. Two homeowners were helped through the home irnprovement grant program. The gazebo was not built. It was expected that 1-5 business would be heiped through the seed capital program. Aithough one business was served, only a small portion of that fund was used. The loan money which was expected to help businesses ixnprove their space and for new business to move in was not used. The grant recipients aze located at 700 E. Cook Ave. and 708 E. Cook Ave. The seed capital recipient is located at 790 Case Ave. Most of the loan funds may be retumed, Not much of the grant funds have been used, but the East Side Neighborhood Development Corporarion (ESNDC) intends to make a concerted effort to get all the funds out. 7n addition to the two grants that have awazded in the community, 9 more have been approved, and 10 are pending Because of the limited use of funds in this project the benefits of STAR money mostly accrued to the actual grantees or bonowers. This project did �ot provide the catalyst that was expected from STAR projects. As indicated above there were three fund recipients in total. The two homeowners aze white, and the business owner is Asian. Contract Compliance: Ali of the funds were used within the designated contract azea. The contract azea is from the comer of Edgerton and Whitall: north on Edgerton to Maryland, east on Maryland to Mendota, south on Mendota to Geranium, west on Wells to Payne, south on Payne to Whitali, and west on 4Vhitall to Edgerton. �, The conttacts were entered into at different times for each component of the project. The business portion began in Apri11995. The home improvement component had a signed contract in April 1996. The gazebo contract was initiated in February 1996. The progress schedule has � not been met in the case of the gazebo. It was eapected to begin in April of 1496 and end November of 1996. It has not been implemented. The home rehab progress schedule was contractually stated to begin March 1996 and end February 1998. It appears that they will not � meet ttris deadline in 1998. Only part of that aspect of the project will be implemented. The business loan and seed capital aspect of the project have the same start and finish dates as the home improvement portion of the project. Once again this does not seem to be conforming to ' the progress schedule highlighted in the contract. Another significant delay of the project 59 stemmed from the fact that the financial arrazigements of the pmject were complicated, and it took longer to get the contracts signed as a result The STAR funds were used for exterior and interior home unprovement as well as for seed capital business improvements. The reason that the &znds were not fizlly disbursed is becanse ESNDC lost organizational capacity after many members of its staff Ieft the organization. Comments: Most of the feedback came from Sean Kershaw and Mike Anderson. This case has the same loan program concerns that were discussed in the previous account report (95.115) Renovated Home on St. Paul's East Side .1 � � � � � � � � � � � � � � � ��-�a� 95.125 H-MARC Exterior Renovation Hamliue-Midway Rehabilitarion Corporarion Description: Grant Amount: $45,000 The objecfive ofthis program was to provide leveraged grants that would be available on a first come first served basis to make exterior repairs or replacements of identified fiYtures. T'his program has implemented 15 home unprovement projects. These improvements involved the exteriors of these homes and included improvements such as siding, roofing, and garage repair. Two of the structures were owner-occupied multi-family dwellings. The grants were leveraged 2 to 1. Each grant recipient had to attend a workshop to prepare for the improvement process. The workshop covered concems like contract language and what to expect from the program. The addresses of the unproved properties are: 1411 Van Buren 1628 Lafond 1811 Minnehaha 1484 Van Buren 1531 Minnehaha 1361 Van Buren 1388 Thomas 1655 Van Buren 1375 Van Buren 1717 Blair 1527 Minnehaha 678 N. Pascal 1528 Minnehaha 1452 Van Buren 1471 Lafond Ave. The program helped H-MARC build relationships with homeowners with whom they otherwise would have had no contact. It gave H-MARC an opportunity to act on behalf of the residents in the neighborhood and trouble shoot for them. The exterior improvement program did have spin-off effects although Beth Randall could not readily identify them. Ms. Randall said the STAR Program did help to build community. Residents came to the workshop and met their neighbors. Beyond the improvements of property the project opened up contacts that did not exist before. Most of the STAR recipients in this program were families. All but one of the participants was White. The average age of the participant was 40 . Contract Compliance: The area served by the program was coterminous with the area described in the contract. The area is bounded by Fairview and Hamline, Thomas and Minneliaha. 61 The STAR contract was entered into on Febniary 23,1996, and pmgram was projected to be finished by August 1997. All except one of the homes that were approved for impmvements accomplished the charge within 120 days. The one that took longer was given an ea�tension but that was not sufficient. The monies for the returned award went back into the allocation process. The remaining monies eamiazked for H-MARC should be spent and the improvements implemented before the end of the snmmer of 1997. Because of the reimbursement process Ms. Randall thought that the rate of completion was slower. She said that H-MARC reimbursed the homeowners with their own funds and waited for the City to reunburse them. H-MARC could only front a porteon of the money at a time, so this slowed things down fiuther. The funds were used for the intended e�cternai improvement eapenditures. The improvexnents included roofs, siding, windows, fencing, driveways, gazages, and chimneys. The fuuds are not fully disbursed because the STAR awazd missed the fust construction season. Another reason for all the money not being disbursed is because one of the grantees never implemented the project. The monies aze almost entirely disbursed, and Ms. Randall said the pmject will be compieted by the end of the suminer. The STAR grant recipients generally used contractors. However a few of the residents used sweat equity to implement their improvements. Comments: The lowest bids from contractors who met the xiecessary Iabor criteria for getting STAR funds did not always construct improvements competently. This was exacerbated by the fact that some crews had no Engiish-speakiug workers. In one case the crew in good faith started preparing the job. Their method of preparation was unconvenrional. The owner recognized it as such and asked them to stop. The crew and its leader appazently did not understand. As a result of this misstep, $500 of additional repair was necessary. Another concern with the program was that the contract forms for the STAR Program were not thought out completely, wluch generated more work for the community groups. Au exampTe was the late inclusion of the demographic request form as part of the process. H-MARC had much of the necessary informafion but had to go back for more. This only adds to the problems created because of the fact that none of the funds can be used for administrative purposes. Ms. Randall indicated that this exclusion of certain costs such as mazketing and public relations makes STAR funds hard to work with. She also stated that the match presents serious problems when worlang with STAR funds, and she thinks that at least in some cases, other City monies should be usable as match in tlus process. The final comment that was made is that all STAR boazd meetings should be open to the public and that a permanent seat should be assigned to a representative of a community organization. 62 1 � � � � � � � � � � � � � � ��-�a� 95.127 3ewish Community Center Capital Improvement Jewish Community Center of the Greater Saint Paul A rea Descripfion: LoanAmount $408,000 The objective of this pro�am was to renovate the e�sting 7ewish Community Center building and enlarge its pazking facilities. The center has been enlazged and new lighting has been installed. The previous lighting system was mostly incandescent, and now it is halogen and natural lighting. Additionally the entire building has been made handicapped accessible. In this effort a wheel chair lift was added to the pool area to enable movement from the entry level deck to the lower pool level. STAR funds also financed the removal of asbestos from the first level and pemutted rehabilitation of the basement level. Systems were improved at the center including the fire safety and air conditioning. Externally the grounds were modified with STAR fixnds. The changes included e�cpanding the parldng lot, sealing it, and adding more lighting. Uneven walkways were made level and the landscaping was enhanced. STAR funding has reinvigorated the JCC and aliowed it to continue to operate as a resource to the southwestem section of St. Paul. The community which the center services came together and raised $1.9 million for the complefion of necessary improvements. With this project the neighborhood and wider community has a location to hold community meetings, and experience physicai fitness and social programs The JCC services the entire population of southwestern St. Paul. Ali ages aze served. Through day care and the teen drop-in center minors are being served. In fact, 275 children aze regulazly cared for at the day care facility. There are programs geared towazd senior citizens. Also there are a wide variety of options available at 3CC which aze not age specific. This variety includes the fitness center, various community meerings, classes for English as a second language and a host of other alternatives. As a result of the expansion and improvement 7CC has increased its membership by more than 1,000. The majority of those served are White as is reflected in the composition of the overali neighborhood. Contract Compliance: The azea being served by this project is primarily Highland, Macalester/Groveland, and upper W. 7th Street. However the JCC is attended by people from a11 parts of Saint Paul and most parts of the Twin Cities. I The contract was signed 3f26/96 and construction started in June of the same yeaz. By 7une 15, 1997 the majozity of the items described in the contract were completed. All of the intended improvement needs were or will be met through the project but somewhat differently then described in the � contract. First it was not necessary to build the admiiustrative portion of the proj ect on two levels as stated in the contract because there was enough room for e�ansion on the fust leveL The 63 expansion of the administrative offices occurred on the first floor. Second, the teen drop-in center described in the contract was placed in the basement rather than on the second floor. Thus the impmvement needs of the center aze being met as described in tfie conlract but with a different physical design. The last pazt of the project, pazking lot improvements, were completed in November, 1997. All disbursements have been used in the JCC project. All of the improvements were accomplished as indicated in tke contract. Titere was one variation nt method through which the project was implemented. The adminisfrarive area is one floor rather than two. With ample space behind the center one level was sufficient to house the center's administrative needs. A11 of the work on this proj ect was contracted out. Comments: Mr. Garr thought the STAR pmg�am worked well with fhe JCC pmject. He viewed the STAR funding and guidelines to be sufficienUy fle�cible to bring this pmject to fruition The hardest part was locating a competent sub-coniracYor who also met the City's Litt1e Davis-Bacon standards. However only one ofmany jobs had to be redone because of poor quaiity. Mr. Crazr thought meeting the City's Litt1e Davis-Bacon requirements was especially hard in the booming economy wluch was fally utilizing its best construction resources. 0 � � � � � Li � � � � � � r a��a� 95.130 Macalester-Groveland Middle Income FY�-up Macalester-Groveland Commnnity Council Descripfion: Loan Amount: $150,000 The ob}ective of this program was to provide home improvement loans to individuals who might be excluded from traditionai lending opfions. It was set up to cusluon the risk of the lender and spark reinvestment. The program enables residents of ttris neighborhood an opportunity to bonow unsecured loans at a 7.25% interest rate in order to make home improvements and conduct major maintenance. As of 7uly 8,1997, 20 applications for loans have been granted. Over $120,000 has been loaned out. This money which the residents directly borrowed from Firstaz Bank is leveraged by $150,000 of guazantying STAR funds and the associated interest. Improvements executed included but were not limited to new roofs, gutters, floors, sidewalks, retainnig walls, and more. No information has been documented by Macalester-Groveland between February and 3une 1997 as no assistant was assigned to the task. During the interview with Katherine Tarnowski, the program manager, it was also mentioned that the loans aze not secured and that there is no recourse to ensure that the loaned monies are used in the proposed manner. The properties seroed are: 1976 Stanford Avenue 2081 Fairmount Avenue 399 Macalester Street 303 South Brimhall Street 1868 Sargent Avenue 183 Mount Curve Boulevazd 1380 Grand Avenue 1381 Randolph Avenue 2123 Fairmount Avenue 2161 Juliet Avenue 2000 Wellesley Avenue 453 Pascal Street South 2033 Stanford Avenue 1361 Juliet Avenue 412 Macalester Street 1725 Berkeley Avenue 1661 Randolph Avenue 2156 Stanford Avenue 1577 Sazgent Avenue 1730 Lincoln Avenue The program has had mixed success regazding its achievements. Not all of the money which is auailable has been loaned out. This program is a compiement to other grant and loan opfions that the community council assists residents in accessing. The larger impact is negligible. No spin off projects or repairs seem to have been spurted on by tlus loan program. Perhaps this is because the improvements are more geared toward lengthening the life of the home as opposed to enhancing its aesthetic character. 65 Young families are the majority of applicants to the prograazn A significant majority of applicants aze white. This is essentially the character of much of the neighborhood and was expected to be the majority of the loan recipients. Moreover a11 the loan recipients are middte income and are generally individuals with good credit histories and little or no equity in their homes. These participants meet the characteristics identified in the STAR contract for the funds. Contract Compliance: All of the individuals served live in the designated area between I-35 and the Mississippi and Smnmit and Randolph Tlris loan program will run over a 10 year period which started February 1996 and wi11 end January 2006. All the principle and interest on the individual loans will be paid back by that time. Each construction work project appeared to be completed within 3 months. The repayment terms of the loans vary slighdy with the most common length is 3 years. The STAR pmgram had little impact on the speed of actually processing the individual loans because the bank handled that. Completion of the progrun has not occurred because all of Ioans for individual pmjects have not been disbursed. IY is believed that the district conncil's limited staffing and lack of publicity kave prevented the funds being fully utilized to date. STAR funds were fuliy disbursed to tUe bank to be held as a loan guarantee. This disbursement amounted to $150,000. This money is held at the bank in a high yield account in the event of a home loan default. The e�cpenditures aze on items specified in the contract. According to Ms. Tarnowski the leveraged funds are not fu11y used because they do not meet the needs of many of the residents in Highland. In puticular they ate not used because of the residents asset profiles(Iazger amount of equity in home than is allowed under the pmgram) or the loan interest rate is too high when balanced against the home owners desire to impmve the properry. Because of the way this program was configured there are no records in the central or STAR files detailing what eapenditures the STAR money backed. According to Ms. Tarnowski all the money loaned out from the bank was used on exterior improvements. .. � � r �� a� � �ag 95.133 Neighborhood Development Center Special Opportunity Loan Fnnd Neighborhood Development Center Sced Capital: $200,OQ0 Description: The program was to provide graduates of the °RECIPES for Business Success" program or the "Micro-Entrepreneur Training" program with business start up financing. This program has been conducting sessions of the "Micro-Entrepreneur Training" program twice annualiy since the contract was signed. The sessions are held in different parts of Saint Paul with the cooperation of various community development corporarions. They include Dayton's Bluff Center for Civic Life, REDA, Selby Area CDC, Aurora-St. Anthony Neighborhood Development Coip., ESNDC, and NEAR. The classes are offered in fall and late winter. These sessions which are also taught in Spanish and the Hmong language aze mandatory before one can get STAR funds in this program. One business has been able to use this opportunity loan fund. The business is Heaven-Hi Originals at 169 N. Victoria St. The loan enabled the owner to make leasehold improvements. Ms. O'Neill, ttie program manager, had confidence that the STAR program could have a significant unpact, but so far she seems to tluiilc that the program has not exercised much influence. One spin- off effect is the fact that Selby Area CDC is working on a new commercial building on an adjacent comer. The building which Heaven-Hi is located in is for sale. This business presence may make adjacent land more attractive also. This program is serving the fledgling entrepreneurs in the neighborhoods of Saint Paui. The single partacipant in the loan fund is an African American business owner who specializes in the resale of Afi art. Through STAR and NDC, he has made his business location an attractive neighborhood asset and also serves as a neighborhood role model. Contract Compliance: The individual business that is currentiy being served by the loan fund is in the program's service area. The area identified in the contract is the entire City of Saint Paul. � The STAR contract was entered into March of 1996. The leasehold 'unprovements occurred during the spring of 1996. According to Ms. O'Neill the STAR funds did not affect the rate of completion for the program. In the case of Heaven Hi the loan money went toward an awning, electdcal upgrade, plumbing, and other repairs. The reasons that most of the Special Opportunity Loan money is not allocated is because the loan money is eannarked for fixed assets and the start up business people need working capital funds for things like small tools, rent, utiliries, labor, and other such costs. The Neighborhood Development Center lmew about this situation earlier, but thought that the new businesses would get beyond that period of the development process and start needing funds for fixed assets. Another unpediment to the use of STAR funds is that community agency is held 67 responsible for the pay back of the loan and for that reason the CDC tries only to use the loan fund as a final option. The work on the Heaven-Hi project was completed by a contractor. Comments; Mara O'Neill thought the STAR funds were hazd to use because of the fact that they aze limited to physical improvements. Another azea of contention is the recourse aspect of the loans. Ms. 0'Neill does noY believe that the CDC should ultimately be held liable for the loan. She also disiiked the way in wluch Norwest Bank was servicing the loan. She wants better and more immediate information regazding the state of the loan payment schedule. She also thivks that the anangement with Nonvest increases the costs of STAR funds to borrowers and loan fnnd operators. Neighborhood Development Center Project at Heaven-Hi Originals .: � � � � � � � � a�-�ag 95.141 Dale Crossroads Development Strategy North End Area Revitalization Inc. Description: GrantA,mount: $30,000 Loan Amount: $50,000 The objective of this program was to revitalize the Dale Street commerciai district by offering low interest loans and grants for exterior improvements. Two eaterior improvement have been implemented. The first is an awning that was added to Easy Street West at the comer of Como and Dale. The awning was financed through a]oan, and it runs above all the exterior wiudows. The second project was the extension of water service to a commercial car repair garage and the repaving of the parking lot and driveway leading to the shop. This improvement is located at 594 W. Maryland One more project has been approved, a pazldng lot and deck. No new businesses have been attracted to the service area as a result of the STAR funds. Only three of the ten projected 'unprovement sites have been developed or at least identified. The 5TAR funds haue helped direct the interest of North End Area Revitalization (NEAR) to the commercial redevelopment zone. NEAR spent substantial titne mazketing the program in the area throughout the spring and snnmier of 1997. Dave Black, progtam director, lrnew of no spin-off effects of this program. � NEAR's STAR Loan Prograni directly serves local businesses. The types of businesses being served are an automobile repair shop and a neighborhood bar. The clients of those two businesses aze generally from the neighborhood. Contract Compliance: � � � � � � Two of the businesses which are being or haue been assisted with STAR funds are geographically within the azea proposed beriveen Maryland/ Topping and Dale/Western. One was west ofthe target area by four blocks, and was approved as a waiver of the guidelines by staf'f. The contract for the entire STAR awazd with NEAR was negotiated March 1, 1996. It was indicated that the whole program would be finished by February 1998. Currently this program has more to do. The improvements on both loans aze completed and took less than 3 months. Steve Haney's project at 594 W. Maryland has not been reimbursed because of paperwork problems. The STAR Program is not affecting the rate of completion. The STAR budget has been utilized for an awning, water connection, and paving. The primuy reason that the money has not been fully awarded and/or reimbursed, according to Mr. Black, is that businesses in that area do not see the benefit of maldng ixnprovements. They do not see that the rate of return due to the improvement will outweigh the risks and obligarions associated with the loan that they would have to take out. The businesses want to see improvement to the entire streetscape of Dale, but this would involve the participation of players like Northem States Power (NSP). .• Mr. Black indicated that he thougtit this type of improvement was not likely in the neaz future. 'The other reason that businesses have been reluctant to participate is that the costs of the financing are too high. Matching funds are often unavailable or would severely deplete operating capital. The 5% rate of interest is not sufficientty attractive to offset the additional costs for labor standards compliance and loan servicing. Comments: Mr. Black indicated that the STAR cycles are unrealisric for small business activity, suggesfing that business monies be open for individual proposals. He felt that the matching feature was severely limiting. Many of the parties that need these monies cannot get a match because they are over extended or at risk for some other reason. Mr. Black believes that despite the sfightly tower interest rate offered by the STAR Program, the process and requirements offset any expected advantages. NEAR plans to retum all remaining STAR loan funds because of the liability it would incur in making additional loans. Grant funds, now available for use without a corresponding toan, wilt be attractive and are eapected to be depleted by mid-1998. 70 � � � � � � � � � � � � ' q�- ta� 95.148 S� Alban's Terrace Project for Pride in Living, Inc. Descripfion: Loan Amount: $225,500 The objective of this project was to develop the vacant building at 683 Hague into 12 apariment units and provide 1 S pazking spaces at 672 Selby. The units were to be designated for rental. This project restored the multi-unit building at 683 Hague which had been vacant for approximately 10 yeazs. It also provided 15 pazking spaces at 672 Selby. The improvements to the building included the replacement of the roof, hard wood floors, bathroom and ldtchen fixtures, windows, interior walls, electricai box, and the heating system. There aze 12 rental units in the building, a laundry room, a community meeting space, and Project for Pride in Living (PPL} office space. St. Alban's Terrace complements PPUs mission. This property is in close proximity to other rental complexes that they also own and manage. As a result they can locate their admiiustrarive functions for the area at St. Alban's Tenace in order to serve all their buildings in the neighborhood. This project heiped contribute to the revitalization of the Selby-Dale neighborhood. Twelve families were given an opporhuiity to live in a safe and affordable dwelling that met standazds for habitation. This property which has finally been made habitable is no longer the location of transient and drug dealing activity. The renovation has positively affected the neighborhood according to the apartment manager, Viclde Petroso. She indicated that there aze new revitalizarion efforts along St. Alban, and they aze taking place at other multi-unit rental complexes. Other indicators of the positive influence of this STAR funded revitalization are seen in accolades from the Grand Gazette and the fact that there is a waiting list for tenants at St. Albans. The building has 12 rental units and all are leased out. Ten of the units aze occupied by married couples with children, and two are occupied by single pazent families with children. African-Americans comprise half of the heads of household, hvo aze White, one is Hispanic, and three are Africans. The occupants have low to moderate incomes. Eight of the tcvelve units' occupants are below 80% of the mean income. Contract Compliance: � The building that was renovated is the same as the property identified in the contract. The occupants moved from various locations, many of which aze outside of St. Paul. Many of the occupants like the location because it is convenient to work. ` The STAR contract was signed on Mazch 21, 1996. Renovation of the building began that same month and was completed December 1996. Toward the end of the process there was a delay in � completing the rehabilitation of three to four weeks because the contractors on the job did not seem to fully understand the fire codes. The STAR funds did not directly affect the speed of time that it took tbe pmject to be completed. Mr. Helmeke, the pmject manager, indicated that the STAR funds � were easy to work with especially compazed to the funds auailable through the rental rehabilitation process. 71 � The funds were compleYely used for the rehabilitation of the buildutg and developmenY of the parking 1ot. As indicated in the central file the list of expenses associated with this renovation are e�austive. In particular the costs which ran in excess of $10,000 aze: demolition cabinets tile electric as halt roofin wood floor refinishin fire alazm maso windows c etin lumber all aintin Comments: PPL applied in Cycle 2 but was not funded. PPL did not apply in Cyc1e 3 because they felt that housing was not a priority of the Neighborhood STAR Board. Rosemary Ctazk, a resident of Saint Alban's Terrace, allowed tke research assistant to tour her unit. She indicated thaf she liked the look and feel ofher apartment. She did not seem to laiow that city sales tas money had been involved in financing the project. Apartments at St. Alban's Terrace � � � � � 72 �� q�-�ag 95.151 Railroad Tsland Moving on the Right Track Department of Planning and Economic Development Description: Grant Amount: $100,000 The objective of this program was to provide visibility and opportunities for neighborhood housing improvements. Over 40 residential properties were planned to be renovated. This project was intended to stabilize and atlsact residents. This program has directly enabled 17 home improvements in the Raikoad Island neighborhood. However because this is considered part of a broader inifiafive that involves other funding sources, the overall impact of the Railroad Implementation Group was over 40 home unprovements. The unprovements were tazgeted primarily at health and safety featutes of the residences and secondarily towazd facade improvements. As a resuit of this program recipients are safer to enter and e�t and less likely to be subject to hazards. The addresses served are: 661 Bedford 657 Desoto 453 E. Minnehaha 706 Bedford 474 Hopkins 585 Payne 588 Brunson 497 Hopkins 678 Preble 694 Burr 501 Hopkins 670 Rivoli 747 Burr 509 Hopkins 527 Tedesco 641 Desoto 444 E. Minnehaha Because of this program and others there is renewed confidence about economic and residential opportunities in the neighborhood. People who had moved out of the neighborhood are coming back. Three new homes have been built in the neighborhood. Moreover two business have recently established themselves on Payne Ave. They aze an antique store and a science lab. There is a renewed effort in the community which is being felt throughout the east side. � Railroad Island Moving on the Right Track has served residents in 17 homes. Of the recipients one was African-American, two were Hispanic, one did not report, and the remainder were White. The mean age of the recipients was 48.8 years, and the average household income was $28,500. 47% � of the homes were headed by males, 41 % by females, and the remaining percentage did not report. � 73 Contract Compliance: All of the impmved properties fell within the designated contract azea bounded by Bush on the north, �Iliatns Hill and the raikoad tracks on the west, Swede Hollow Pazk on the east, and East Seventh on the south. This pmgram began at the end of September 1995. Most of the consttuction occurred during the building season of the 1996. The entire program should be completed by December 1, 1997. The funds were used on safety and facade improvements. This includes safe passageways in and out of the house and refurbished exteriors. Tn particutar this program improved: porches, steps, and decorative details exterior painting, siding, and stucco repairs of deteriorated retaining walls replace(repair windows replacemenUrepair of roofs, soffits, facia, and gazage repair. The reasons for the delay of this program aze the match and difficulty getting bids from the contractors. The majority of work was done by contractors. The small amount of volunteer Iabor was not documented. Comments: Because of the amount of difficnliy getting bids and general commitments from contracYors, Ms. Pemberton thought that one appruach that may ameliorate this difficulty would be the use of more construction apprentices on STAR projects and pmgrams. 74 ! C� � � �..', � � � � � � � !; , ; 95.152 Riverview Area Streetscape Riverview Economic Development Association Description: Grant Amount: $74,000 The objecrive of this project was to revitalize the West Side's major commercial distdct with designs honoring the multi-ethni city of the neighborhood while using the river as a focus point. This project has been partially implemented. At this point 12 benches have been acquired and installed and eight small murals have been created on the George Street viaduct. The concrete benches which have been acquired use inlaid tiles as decorafion. The tiles were made by school children in the neighborhood. The murals on George Street depict characters from different cultures throughout the world. It represents the diversity of humankind. Another mural was created on the viaduct over Robert Street. The design for that work was contributed to by the Girl Scouts. However, the majority of this streetscape project has not been implemented. The idea of creating metal sculptures has been revisited and as a result of dQnated materials made availabie from the old Wabasha Bridge the project will involve a stone sculpture rather than three metal artworks. The planned stone sculphue, which will be located near the intersection of Wabasha and Concord, will denote the role of water in the arrival of many of the community's residents. The design will incorporate a semi-circulaz walk and a fossil mosaic. Other intended elements of the project are the addition of 10 planters and 12 trash receptacles throughout the neighborhood. This project has renewed community pride. Ms. Briseno said owner occupation has increased and rental tenants want to purchase the property that they are occupying. Visibility for REDA has increased with this project. The Arts are becotning more accessible. Philanthropic organizations are begimiing to recognize REDA and its commitment to the overall well-being of the community. The impact of this project is felt throughout the community. No actual numbers are available about how many aze served, but the improvements aze easily accessible to all residents. � The service azea is defined as: Concord Street between Ada on the east and Wabasha on the west; Robert Street between the Burlington Northern line on the north and Concord on the south; and Wabasha Street from Plato on the north to George on the south. � � Contract Compliance: STAR funds haue been used for the benches, tiles, artist fees, and supplies. This is verifiable through the receipts in the central file. � The contract was entered into on Mazch 1, 1996. The itnplementation began in Aprii 1996 and is expected to be finished at the end of 1997. The matching process has slowed the rate of completion, however, the project is still in compliance with the timeline as specified in the contract. Another � factor slowing the completion is REDA's difficulty getting commitments from azea businesses to help maintain the unprovements. Currently they aze looking for sponsors for the planters and trash � 75 r � receptacles. The process of getting sponsors for the benches took some time because the businesses � were not certain how much work was involved. The benches cost $8,OOR The murals on George � Street were $6,000. The Girl Scout mural was $18,000. Each aspect of this project required group involvement. Volunteer labor was a major component. � Not only was physicallabar a part but so was reseazch. The Girl Scouts reseazched different features of Latin American cultures in order to decorate the foot bridge. 76 Street side bench on Concord Street �� [J � �_J ��-ia� 95.153 West Side Business Development Loan N�nd Riverview Economic Development Association Description: Grant Amount: $50,000 Loan Amonnt: $60,900 The objecrive ofthis loan and gant program was to stimulate neighborhood inveshnent. The monies were designated to leverage the inveshnent on a one-to-one basis. This program has been partially implemented. Anne Briseno, the prograzn manager, stated that the remainnig grant portion ofthe program is in the process ofbeing implemented, but the loan portion is uncertain. Under the grant, 12 store fronts have been unproved. Some of them are: 11 Concord St. 420 S. Robert St. 455 S. Robert St. 175 Concord St. 429 S. Robert St. 458 S. Robert St. 183 Concord St. 441 S. Robert St. 464 S. Robert St. 168 George St. 448 S. Robert St. 537 State St. The improvements include awnings, windows, doors, stucco, signage, paint, pazking lots, and lighting. The loan funds helped with the acquisition of the property at 200 Concord Sireet. REDA has identified four more businesses to use the remainder of the grant funds. The use of the loan funds has not been completely identified, but another acquisition transaction would be a possible use of some of the loan funds. This program has renewed business confidence in the commercial viability of the Riverview area. Membership in the neighborhood business associarion has increased. The relationships within the REDA and with the arganization itself have improved. Examples of the improvement in the business climate of the Riverview azea aze witnessed in the fact that Mi Tiena Restaurant, Megusta Mexican Cuisine, Las Americas grocery store, and others moved into the area. This prograzn is directly serving the business retail segment of the population. This in turn is helping to supply the neighborhood with a comprehensive array of goods and services. In fact some of the stores are highly specialized and their service and/or product are not readily found throughout the metropolitan area which gives them a larger service azea than the Riverview area. There have been three business eapansions and five business that went from tenant status to owner occupied status. Another indicator that business activity is increasing for the neighborhood can be seen through the steadily elevated attendance at the Cinco de Mayo festival. 77 ' Contract Compliance: All of the businesses that were unproved by this program are located in the area that was designated in the contract. The area is one block on either side of Concord Street between Ada on the west and Wabasha on the east; one block on either side of Robert Street between the BurIington Northern Raikoad on the north and Annapolis on the south; and one block on either side of Wabasha and Wuufred from Plato on the north to Shyker on the south/west. All of this azea is in Saint Paul. The STAR contract for this program was entered into on March l, 1996. Each of the improvements had to be completed within 90 days per REDA guidelines. All of the facades have been completed within this time frame. Ms, Briseao made no indication as to when the loan portion of the program would be completed, but she believed that the grant aspect would be completed by the end of September 1997. The final completion period in the contract is Februazy 1998. Ms. Briseno stated that there were no elements of the STAR which accelerated or retard the speed of the prograzn's completion. Aowever the REDA requirement for more than one coniractor bid has extended the amount of time prior to the implementation of the improvements. All of the gtant funds have been used as specified in the contract. The monies went to facade improvements. However the loan funds did not go towazd commercial rehabilitation but rather towazd the acquisition of a space for business. Ms. Briseno was certain that her accounY officer, Marshall Tuxner, was aware of this, and that this use although extraordinary was acceptable. Comments: Ms. Briseno expressed concerns about the usefulness of the STAR loan program. She thinks that the underwriting standards aze excessive and that the community organizations can not compete against the private sector. She thinks that in tight of the efforts tfiat communiry organizations make to mazket the loans that they should also get to service them. Because neighborhood organizations have few assets she thinks that it is futile to hold them liable for loan defaults. Another problem she had wifli the program is that a recipient must use the funds for bricks and mortaz. She indicated that these requirements for sales tax use of funds limit the possibilities of the program and aze generally unrealistic. Ms. Briseno also did not caze for the use of reimbursexnents as a method of disbursement. Because of this feature it put a heavy burden on the community organization which is already strapped for cash. When Ms. Briseno applied and accepted the Ioan feature ofthis pmgram she was thinlang that should could use the loans as interim financing while waiting for the grant reimbursement. The funds in the loan portion have not been used in such a way but that was her initial thought. Editor's Note: The City agreed with Ms. Briseno's concem about loan servicing of the business loans and REDA now has their own servicing agency handling the individual loans. FF3 [�� 95.155 Indnstrial Expansion and Renovation Loan Program Port Authority of the City of Saint Paul Description: �� i a� LoanAmonn�$150,000 The objecrive of this loan program was to provide up to 3 loans that would be originated with manufacUUing or industrial companies for facilities unprovements, designed to increase the City's tax base and createlretain living wage jobs. Loan terms with the Port Authority were to be set at 4% interest with a term of 15 years. This loan program has been implemented. One loan amounting to $150,000 was awarded to Northwest Sheet Metal. With the help of this loan they were able to acquire a site and build a new manufacturing facility. The facility is located at 110 W. Sycamore. The building which is 15,300 square feet houses admiiustrative and manufactiuing funcrions. The possibility that three loans would be awarded was discussed in the contract. Steve King, the program manager, said that was not possible because the STAR award granted the Port Authority was less than what was requested. The plan as implemented allowed the Sheet Metal works to double in size. More importantly it allowed them to remain in Saint Paul. This was one af the primary objectives in this loan program- job retention and creation. This loan accomplished just that. The program allowed Northwest Sheet Metal to use the final pazcel in the North Rice Street Industrial Park which had developed slowly and somewhat uncertainly. It attracted companies with similar interests about eacpansion to approach the Port Authority. This project increased the ta�c base ofthe city by an assessment value of approximately $640,000. Eight additionai jobs were created which pay an average hourly wage of $24. This program directly served one manufacturing business. However it provided a safer and more efficient work space for the existing employees and addirional space for 8 new employees. Contract Compliance: The facility that was created as a result of the loan program is in the City of Saint Paul. The service azea that the Port Authority described was citywide. The conh�act for the loan program was entered into March 1, 1996. Construcfion on the sheet metal facility began in October 1996 and was completed in January 1997. STAR loan funds were used for the purchase of the land on Sycamore it appears. The money that paid for the reimbursement went to Commonwealth Land Title. 79 � 95.158 Phalen Corridor Redevelopment Project Port Authority of the City of Saint Paui Description: Grant Amount: $150,000 The objective of this project was to redevelop vacant and underutilized industrial land for reuse as industrial projects which generate living wage jobs. The corridor extends from I-35E in the west to the Phalen Shopping Center in the east. The project includes the acquisition and redevelopment of approximately 30 acres of blighted, abandoned, and underutilized raikoad property. The new azea is desi,giated to hold light industry. This project, which wilt redevelop the Wiltiams Hili secUon of Saint Paut, has not been implemented. This is a business park development. It will encompass five pazcels on a total site area of 25 acres. The park is zoned I-1 usage, so it will be tazgeted toward light manufacturing and industry. Currently the land is going through soil remediation. After that the ]and will be reshaped to accommodate the planned acrivity. Later the utilities and roads will be added. "The STAR funding is critical," according to project manager, 7ohn Young. There is a narrow mazgin for errar in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awarding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are charged with spurring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that will occupy the park, there will be a recognizable positive effect. For instance, the Port Authority requires 60% of the project tenanYs employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the park to employ one worker per 1,400 square feet of enclosed sgace_ This acYs in combination with the fact that the port atso mandates that business develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees wiIl work in the business pazk when it is fuIly developed. This is stren�thened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. The project will directly serve approximately 5 light manufacturers and their employees. Beyond that it will depend on the nature of the businesses. Factors such as IocalIy made content of tlie inputs and the mazkets of the fmal products will determine who is being served also. Contract Compliance: The project is stili set to fa11 within the boundaries established in the contract. The service azea is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northem rail line tracks on the north and east. :1 � [� � �� - i a� The contract for this project was entered into Mazch 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The roads and urility serves aze expected to be finished by September 1998. � No STAR funds have been used on this project because no capital improvements have been made. First remediation must be completed. After a month (9/97) that process should be complete. This necessary step has slowed the completion process. Also matching funds that are pending for this � proj ect from the Federal Economic Development Administration must be received before the STAR funds can be used. If they aze not, then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors aze addressed Mr. Young believes the total project should be I finished and ready for business development by September 1998. � � �� .� ' 95.165 Cambodian Community Center United Cambodian Association of Minnesota Description: GrantAmount: $150,000 Loau Amount: $150,000 Seed Capital: $ 50,000 The objective of this project was to enable The United Cambodian Association of Minnesota (LJCAM) to purchase the bank building at 523 Jackson St.. This structare was designated to be used as a Cambodian Community Center, UCAM offices, and a Cambodian restaurant. This project is partially completed. The building at 529 Jackson St. has been acquired. The resYaurant facility described in the coniract has not been started. Tke buildittg that the United Cambodian Association of Minnesota (UCAl� purchased houses numerous functions. They are: UCAM offices, the Cambodian Legal Project, recreational and social faciliries for Cambodians, an art studio, and 16 residential rental units. The building's purchase price was $700,000. The financing of the purchase included $40Q000 in mortgages on the building. With STAR funds the UCAM has been able to serve a segment of the Saint Paul citizenry which was not previousIy being served. Cunently the organization is serving as a social organization. This mle is slowly changing to one more aimed at cultural preservation. During this period of evolution the UCAM is sti11 serving the urgent needs of its clients, 80% ofwhom are considered in poverty. The needs involve issues associated with social disarray experienced when their clients aze assimilating Yo American culhu The UCAM impacts the wider community by offering educational and social opporiuniries to the bmader Asian community. It indirectly benefits the wider community by stabilizing and directing the Cambodian community toward self-sufficiency. The center primarily serves the Cambodian population of Saint Paul. There are 4,500 Cambodians in Saint Paul and a total of 9,000 in of Minnesota. The project management thinks that about 3,000 people aze served directly. However the served population is not lunited to Cambodians. Through the center's legal services immigrants from other countries aze aiso served. People from Africa and southeast Asia look to UCAM for assistance. Contract Compliance: The purchased building is located at the address indicated in the conlract (comer of Tenth and Jackson). The conlract was entered into January 2, 1996. The purchase of the center occurred that same month. UCAM requested and was ganted an extension on the seed capital loan unfil7anuary 2, 1999. Additional tenants are being sought for the project and these funds will be used to make leasehold impmvements for new tenants that aze new businesses or are earpanding. The STAR funds that have been expended for flvs project were for the acquisition of the building at 529 7ackson. The remaining funds which have not been spent aze seed capital funds to start a new E:3�► � 1 ' � a� - i a� restaurant or improvement of their other commercial space. Two primary factors are holding up the complete implementation of the plan. The first is locating matching funds. UCAM management thinkc this will be resolved with iY s latest efforts to apply for grants. Another stumbling block for the project is the inflated prices associated with the design and the difficulty of getting bids which work within their budget. UCAM has teiminated its relationship with the former architect and is looking into other designs and uses for tlus space. � Comments: Mr. Popken raised some concem that the process was all on paper. He thought that there was going to be a site visit during the approval process, yet he never heazd that such a thiug had happened. � Editor's Note: A video that was viewed by the STAR Boazd was taken of each of the application sites. The City Council agreed with Mr. Popkens's concerns and staz�ting with Cycle 3 all applicants � who aze invited to submit a final application aze interviewed by the STAR Board. � � � � � � � � � �J � Ei�3 � � 95.166 University Marketplace Facade Improvement University United Description: The objective of this program has been to provide funds that will be used to physically improve businesses in the University/Midway azea. The required match is 1.2 to 1. As of July 22, 1997 no part of this progrun has been implemented. However nine facade improvement grants have been awarded within the past two weeks and per University United guidelines once a project has been awarded the unprovements must be completed within 45 days. Ms. Rodriguez, the program manager, said that there may be extensions on trris deadline, but all the approved grants should be completed by the end of the bnilding season. When the improvements aze unplemented they will include siding, doors, windows, roofs, paint, and signage. University United has placed a deadline of July 30, 1997 on all grants for facade improvements. Without eacpanding the service area Ms. Rodriguez is uncertain as to whether the funds can be fully awarded. Addresses for Approved Facade Improvements: 1183 University 1569 University 453 N. Snelling 1669 University 1266 Donohue 1505 University 1639 University 1553 University 1459 University This program has helped University United make a connection with the business community. Businesses aze beginning to realize that there is an association which represents the commercial interests of the Midway, and they are seeldng it out for assistance. Ms. Rodriguez could identify no spin off effects from the facade improvement program, but she was convinced the program serves as a complement to the Midway Mazketplace shopping center. She indicated that many of the small businesses which received the awazds for the grants do not replicate the consumer offerings of the shopping center. This specialization accentuates the commercial potency of the azea. This program directly serves the businesses of the Midway area. The first approved allocation of $39,315 will serve nine businesses. Each awazd averages $4,348. If the remaiiung funds are allocated in the same average amounts about aight more improvement awards will result. The applicants have been racially diverse. Seven are WYute, three are Afi and six are Asian. Because of the magnitude of this commercial hub, the area serves residents from outside of the neighborhood and the city. GrantAmounh.$7s,000 � , E:� � �� Contract Compliance: � Each of the businesses that have been awarded grants are located within the region which was � identified as the tazget azea in the contract. The borders are Fry Street on the west, L,e�ngton on the east, Shields Avenue on the south, and Charles Avenue on the north. � The contract for this program was entered into Mazch l, 1996. Because of a change in University United's administration staff, limited administrative resottrces, time demands on small business � ' � � � owners, difficulty of getting two construction bids, and business owners' inabilities to meet required standazds, the implementation process is only now getting under way. As stated earlier each award recipient has 45 days to complete the project, but because of a high demand for contractors in mid construction season it may take longer. Additionally the University Marketplace Faqade Improvement Program applicants have until July 30, 1997 to apply but this may not ensure enough quality applicarions to awazd all the grant money. 5611 Ms. Rodriguez believes that the program can be completed before the end of the yeaz, but it might involve expanding the service area farther in each direction on University Avenue. Despite diligent efforts to contact the public about the University Marketplace Business Facade Improvement Program for the Midway area, there has not been an overwhelming response. University United has released flyers promoting the pmgram three times. The first of which was in April 1996. Two of the flyers were mailed whereas one was delivered door to door. Most of the projects involve the wark of professionals in the construction industry. University � United advised each business to do it that way to make certain that the improvements met regulatory requirements. A couple of the projects involved some sweat equity, which was limited to minor portions af the unprovements. Update as of January 21, 1998: As of today, IJNITED has closed on 13 of the 20 projects. Three projects will be completed next month. Total physical improvements for the 16 projects is $203,155. If the remaining projects follow through to completion the total improvements will be $317,155. A total grant of $75,000 was allocated to this program. The project far exceeded the required matching amount specified in the contract. m � � 1 � , r / r �) 1996 Neighborhood STAR Small Grant Program 96.001 962 University Avenne Facade Improvement for the Upper Midwest Acupnncture Clinic and Healing Center Grant Amount: $15,000 Asian Business & Community Foundation Description: � The objective of this project was to renovate this building's facade, create signs and rehabilitate its front access. In addirion the project was intended to make the buiiding more visible, handicapped accessible, and more attractive to the clients. � lJ � � � This project has been partialiy implemented. The fi access has been completed. It has concrete stairs which lead onto a wooden deck. The deck azea is surrounded by four-foot wooden walls. The walls were varnished ixnmediately after completion, but the deck portion was not. It appeazs to haue deteriorated to some extent, and it may not last the designated seven-yeaz period. In order to make the building handicapped accessible the pazlang lot was resurfaced and a gap between the building and lot was filled. According to Nghi Huynh, the project manager, the door to the parking is wide enough for a wheel chair. It did not seem to be as wide as standazd handicapped doars. However there is a garage door adjacent to the entrance and Mr. Huynh indicated that it is used as an access also. Despite this improvement there are significant deterrents to handicapped use of the building. First it would be neazly impossible to ascend the incline from the sidewalk to the pazking lot entrance without help or at least a motor. Secondly, the bathroom facilities aze not handicapped accessible. � Because the building is made of corrugated steel and the parking lot is adjacent to it, it is sub}ect to denting. A protective wooden guardrail was installed around the building. In the rear and front ofthe parldng lot gates and fences have been erected. The gates can mll open and shut. The last part � of this project is a decorative cylindrical wooden structure on the northeast comer of the building. As of August 1997 it had been completed and was waiting for a sign to be placed on it. A lit sign will be placed at the top. The top is defined by an angulaz cross-sectional cut. ' l, I � IJ � Because of this pro}ect the center at 962 University is more visible. It benefits the clinic by making it easier to recognize on the a�enue. The lazger community is benefited also because this is the only health center in the eastem metropolitan azea which synthesizes eastern and westem approaches to medicine and healing. This clinic mostly serves people from the eastem portion of the metropolitan area. Mr. Huynh described many of the patients as having low incomes. 70% of the pa�ons are of East Asian origins, and 30% aze White. �'�37 ' Contract Compliance: The services of the clinic are strongly focused on the immediate area surrounding the clinia This includes the Midway and Frogtown areas. Because of limited services throughout the metropolitan azea most of the clients come from the east side of the Mississippi. The STAR contract was entered into 7uly 22, 1996. According to Huynh, improvements began in June of 1996 and are e�cpected to be completed by September 1997. This does not fall within the one year expiration period wlrich ended on 7uly 22, 1997. STAR funds have been disbursed on this project. There have been two requests. They are recorded in the STAR file. The central file shows no disbursements or receipts. The majority of the project was accomplished through contracted labor. Volunteer labor was used to prepare the area for the improvements and varnish the eaposed wood. Midwest Acupuncture Cenfer E�3 , 0 ' , � � 1_ J L a�-1a� 96.002 Maintenance, Training, & Distribution Center Aurora/Saint Anthony Development Corporation Descripfion: G�ntamo��:$io,000 The objective of this project was to create a facility serving as a maintenance, tool storage, and distriburion center for products donated by various businesses which will be used to aid residents gain lmowledge of tools used to make maintenance repairs. A garage has been modified and improved to setve as a learning and resource center foz basic sldlls. In order to adapt this building to a different use changes were made. The improvements include a new roof, electrical wiring, a gas line, and sheetrock. Siding will be added to the exterior of the building. Because this project has not begun to use this space, it can not be determined what the project will achieve. However it is eapected that this project will aid residents in learning rudimentary skills about plumbing, sewing, carpentry, and electrical wiring. � The project has been taking applications from potential participants. The applicants must be over eight years of age. Most of the participants aze expected to be children or young adults. However senior citizens will serve as mentors and the beneficiaries will include middle age residents who L � , tJ lJ � � � � want to enhance their laiowledge of home improvements. Contract Compliance: This project serves the neighborhood residents, but the adyacent azeas of Frogtown and University/Smmnit are also served. This STAR contract was entered into on August 30, 1996. The project began in October 1996. It will be completed by August 1997. The manner in which the STAR funds are disbursed did not impede the progress of the project. The STAR funds were utilized for capital improvements to the new gazage behind the house at 770 University. The improvements anclude a roof, electrical and gas service, and siding. This project was completed with a significant contribu6on of volunteer labor from the neighborhood and others. The implementation of this project was made possibie through the volunteerism of the residents of the neighborhood, and volunteers &om the carpenters and masons unions, Central High School students, and Knutson Construcrion. � � � 96.003 �rniture Warehouse Catholic Charities GrantAmoun�$12,454 � Description: The objective ofttus project was to rehabilitate the building at 436 N. Smith by relocating the garage door, upgrading the interior space, and maldng some public improvements Yo the front of the property to be used as a fiuniture wazehouse. This pmject has been implemented. The leased building at 436 N. Smith has been rehabilitated. In doing so the e;derior has been painted, the roof has been fixed, and the buildiug has been insutated. Intemally the building has undergone some changes also. 'I'he impmvements and additions include an office space, a kitchen, and handicapped accessible bathrooms. Frank Forsberg, the project manager, said this location is superior to the previous site in Frogtown because it is lazger, less expensive, and closer to a number of bus tines. Part of the plan that was indicated in tiie contract was not possible because of cost restrictions. It was proposed that a garage entrance be placed in the front of the building. It was too costly, and so it was not done. Forsberg also explored the possibility that a newly enlazged garage door be placed along the south side of the building. This was not possible either because the heating pipes in the building aze elevated along the south side at a relarively low height. Placement of a door on that side would have meant re-routing the pipes. A choice like ttus would have been cost prohibitive. Catholic Charities and other non-pmfit social service agencies have benefited from the creation of this furniture store. This improved site acts as a conduit between donors and recipients. It is a cleariughouse for fiuniture which is donated from the eastern metropolitan azea. The customers aze homeless and are trying to get back into housing. With severely limited resources the clients of the Fumiture Wazehouse have no way of obtaining fiuniture. None of the clients walk into the center direcfly but are referred fi other agencies. The referring agency writes out a description of what the person needs. The Furniture Wazehouse tdes to met that need. Thus the warehouse project is having an impact on the community. Most of the people served by this project aze from Saint Paul. Forsbetg estimated that 10% of the clients aze from outside of Saint Paul. Few of the furniture store clients come from Minneapolis because they have their own service. On a�etage, 40 families use the fiuniture store per week. Contract Compliance: The site thaY was renovaYed at 436 N. Smith concvrs with the site indicated in the contract. According to Forsberg the Furniture Store mostly serves people dwelling in downtown Saint Paul. A lazge percentage of homelessness in the eastem half of the metropolitan area is in downtown Saint Paul, and this is the region to which the furniture store caters. � .� ' � , C 1 � � ' � � � �J [J , ' � � ' � q� - �a� The date that the contract was entered into was August 9, 1996. Construction started in July 1996, and it was completed in October 1996. The STAR funds were fully used for this project. Receipts aze present in the central file. The expenses included partitions, insulation, a garage door, and assorted materials. This project involved volunteer labor. Volunteers helped with the interior and exterior painting. They also helped with the demolifion of interior walls and shelves. Comments: Forsberg chazacterizes the STAR program as a good investment in the inner city. However he fliinks the paperwork for the STAR, especially the small STAR, may be too intensive. He stated that some of the regulations should not be applicable to small grants. He thought that if some of the regulations were ]ifted it would be better for the community. 91 ' � 96.004 Children's Center Playground The Children's Center GrantAmount:$12,500 � Description: The objective of this project was to construct a playground for children ages 3-12. This project has been implemented. The playground is Iocated on the west side of the prope�y at 1065 Summit Avenue. Prior to the execurion of this pmject there was a playground on this site. As a result of ttus project the playground was doubled in size. In prepazation for the additional playground equipment the new secfion was excavated and a foot of pea gravel was filled in. Atop the fill a new piece of play equipment was installed. The equipment is primarily composed of fieavy duty plastic. It includes four slides and a slide track. According to the project manager, Colette Ryan, there was not enough play area and equipment for ttte children from the Childten's Center. Prior to the installation of the new equipment it was necessary to stagger the times in wluch the Children's Cente�s students used the play azea Because of the eapanded capacity this is no longer necessary. This not only benefits the Children's Center, the Crocus Hill Nursery, and Saint Luke's Elementary School but also the larger community. Although the back portion is fenced off, there is one gate in the back, an opening in the back, and one gate and an opening in the front of the grounds. Because of this access, ctrildren from the entire neighborhood can use the playground. This is the only playground within five blocks. The location and equipment at the grounds make this a safe and amactive play azea for small children. This project direcUy serves the children, pazents, and faculty at the Children's Center. Additionally it serves the children who attend Saint Luke's. Only the school children in grades K- 5 can use the playground. Minunally there are about 200 children who use the grounds on a daily basis during the weekdays. On the weekends and week nigkts tke grounds are more intensively used by the neighborhood. Ms Colette had no idea how many people used it during those periods. Contract Compliance: The area served is bounded by I-94 to the north, Summit Avenue on the south, Lexington on the west, and Victoria to the east. The nearest playground is located at the J.J. Hill Elementary School. This play area has been identified as being unsafe because it has a history of some criminal activity. Thus the newly expanded playground at the Children's Center is critical. The STAR contract was signed on August 30, 1996. The implementarion of the project began in July of 1996 and ended in September of 1996. The STAR funds went towazd the play equipment. Ms. Colette indicated that they chose equipment that the city regularly uses because it has a proven safety record. They did this despite the additional cost of the recommended equipment being higher than some altemarives. i 92 ' � ' qg ��a� Sweat equity was present in the implementation of this proj ect. Volunteers excavated the site, laid the gravel, and assembled the play equipment. The assembly was conducted under the supervision of a certified representative from the play equipment company. Comments: Ms. Colette indicated that some of the applicarion questions did not apply to the � situation of the Children's Center. This made the process mare confusing. Overall though she thought the Small STAR progatn was a good fit to their needs. The coordinators were helpful. Ms. � Colette said with the right project that she would apply again. Playground 93 Children's Center � 96.005 Dayton's Bluff Youth Project Dayton's Bluff Center for Civic Life GrantAmonnt: $10,000 � Description: The objective of this pmject was to install a gas boiler, insulate, sheehrock and build an egress exit in the basement of 281 Maria, so the azea could be used to house a bicycle repair club and a ceramics pro�am for at risk youth. This project has been unplemented. It involved the prepazation of the basement space of the Dayton's Bluff Community Center at 281 Maria Street for a bike repair shop and ceramics program. The space has been designed to benefiT at-risk yonth. In order Yo accomp&sh this project an egress access was added to the rear of the building. The access is enclosed in protective fencing. To increase the energy efficiency of the center insulation and a gas boiler were nvstalled. The proj ect was not completed in absolute compliance with the contract because sheetrock was not used in the creation of the bike repair shop. Donovan C»mmings, the project manager, said that the actuevements of the project aze limited because an attendant has not been hired for the bike repair shop. However there has been some program success with the creation of this space because the ceramic program has been operating since the beginuiug of the sunmier of 1997. This program reaches out to high school females and is entitled "Portage from Youth". An instructor has been enlisted to lead the classes which are offered weekly. Mr. Cummiugs said that in order to involve the community in the project more broadly it is intended that some parts of the pmject will incorporate intergenerational prograrr,ming. Because the project is not fully operarional, it is not yet serving the community as anticipated. The Portage Program is serving 10 students currently, and the bike repair shop is not serving anyone. Kathy Moriarty, who works with the Dayton's Bluff Community Council, said that they are trying to get a voIunteer to run the bike shop. Originally they were going to get funds from an anti-dtug program, but the money is no longer auailable. This change could prove to be a fomudable barrier to operating the bike shop. Contract Compliance: The project serves the azea of Dayton's Bluff: Mr. Cumnungs defined the area of service to include most of the south east section of Saint Paul. The STAR con�act was entered into June 14, 1996. The implementation of the improvements began during the summer of 1996 and was finished by the spring of 1997. This pmgress schedule complied with the anricipated contract outline. The STAR funds were used for a portion of all the ixnprovements in this project. The improvements include insulation, a boiler, and an ea�terior basement access. , �� , � � , , � L � � , , � � 1J � � ' � q�-�a� The labor for this project was entirely contracted. There was no sweat equity involved in the implementation of this project. Comments: Because Mr. Cnmmings is a real estate agent and contractor, he has a keen interest in the neighborhood and housing component of the STAR program. His company has been responsible for the labor necessary for the rehabilitation of the Swede Hollow Cafe. Mr. Cnmm;ngs identified the City's deferred loan program as being good. It helps promote home ownership and commitment to the neighborhood. He believes that there should be more funds available to the middle income, middle age segment of the population. Accarding to Cu*nm;ngs these residents are critical to the stability and sustainability of the neighborhoods. Perhaps the required match can be more highly leveraged by the individuai than aze some of the current progranis which require a one to one match. � , 96.009 Hamline Branch Library Public Improvements Grant Amount: $15,000 Hamline Branch Library Association Description: The objective is to implement signage,landscaping, and security lighting for the front yard ofthe � Hamline Branch Library, resulting in better visibility and increased patronage. This pmject is in the final design phase since several modifications were needed to improve the long- term maintenance needs of the Hamline Branch Library staff. A sprinkling system currently is being designed for the site by Larry Kasella The bid for the sign and lighting will be prepared during Pebruary of 1998, by City design staff in LIEP. Some modifications were required to accommodate a lighting system that would be compatible with the type of snowfall expected during the typical Minnesota winter. Triesta Brown, the project manager, indicated that thera were two major setbacks in project — implementarion. At the recommendation of Ken Dehkes, Hamline Universiry's landscape architect, � a site review was conducted to analyze conditions that would affect design such as snow removal, library hours, sunlight and shadow patterns during different seasons of the yeaz, health of the trees currently on site, and runoff and drainage patterns that currently e�cist. Ttris work was completed in ' September, 1997. This took more time than anticipated. Nea�t, a key community member from the Gazden Club uneapectedly passed away in August, 1997. The deceased was going to assist in the project by malang connections with local nurseries. Previously, it was thought that with the Garden , Club's assistance, the pmject could receive design guidance from the nurseries at no additional cost. While this still is possible, Ms. Brown is investigating obtaining the assistance of a master gardener who needs volunteer hours to maintain the master gazdener credential (by suggestion of the , Sustainable Resource Center staf�. Originally, conceived as a project designed around personal relationships, the project has become one where cold calling for nursery stock now is a necessary component for project contpletion. While Ms. Bmwn is prepazed to be flexibie azcd do whatever is � needed to complete the project, she is not a paid staffperson, but is an unpaid volunteer of a very small SOlc3 non profit organization that has no staff whatsoever. When she became ill in November, 1997, and was unable to work again until mid-January of 1998, there was no one else � available to move the project forward during that time period. The contract was entered into on August 30, 1996. According to the contract, they ha�e two years to complete the project. Ms. Brown indicated that everything will be completed by that time. Comments: Ms. Brown thiuks that the STAR Program is moving further away from its origianl intent of helping neighborhoods. The Neighbarhood Parkiership Program (NPP) was more useful because it was possible to tie a pmject in with other neighborhood planuiug efforts and into several public funding sources. Another limit of the STAR Program is that much of the regulaz STAR is earmarked for loans. Small organizations cannot service the loans, so they pass up the program. Without administrative allotments, many organizations can't devote sufficient time to the project to allow it to come to fruition. She understands the state lesgislature's need to direct the program toward proj ects which require bricks and mortar only, but it is unrealistic and a serious limitation .� i ' ' , � , ,, � , � ' ' ' � � ' ' �� .� to each projecYs fulfillment. Brown said that maybe the state legislature needs to be petirioned on this point. She aLso recommended that there be funds available for adminis�ative purposes or that an incentive to limit aduunistrarive cost be offered in conjunction with a source of admiuistrarive funds. Ms. Brown thinks that STAR funds should be combined with CIB. She thinks that the review process of CIB is conducted by people who are more lmowledgeable regarding the ways in which different interconnected funding sources can be combined for the greatest leveraging effect, especially federal and state sources. Even though these funds have become less plentiful, they still aze an important source of money that applicants aze likely to hy to combine with STAR either directly (which actually happened in the first round of funding) or indirectly by combining a STAR funded project with another related project that uses a different funding source. � u 96.011 Skyline Towers Playground Project Grant Amount: $20,000 Lexington Hawline Community Council Description: Tfie objective ofthis project was to construct an open space and playground at Skyline Towers. This project has been implemented. The playground is located on the northeast corner of the St. Anthony and Syndicate intersection. The park is divided into two play areas, each of which have a swing set and a Little Tikes Play Complex. Additionally this 3/4 acre site holds a circular sandbox and open play azea. All of this is accessible via asphalt pathways which aze equipped to handle wheelchairs. With the development of this playground, the adjacent bousing compleac,1247 St. Anthony Avenue, is provided with a quality recreation space. According to project manager, CYuis Dart, ttris area serves as a backyard for the residents in a high density housing complex. It offers safely and convenience to the residents. No longer do young children haue to cross Interstate 94 to find an acceptable play azea. � Skyline Towers Playground Because of its size, location, and ownership most of the pazk attendees aze from 1247 St. Anthony. This complex houses over 200 children undet 12 years of age and another 50, 12 to 18 years of age. In light of space limits the number requiring services at this location could not go up much more. Mr. Dart indicated that those who use the pazk from outside the community aze generally connected to the residents in some way. Additionally, this playground is extensively used by a child care program which is located at 1247 St. Anthony. Previously they had a small play azea. The space of the previous playground has been included in the new development. m Contract Compliance: /� � � . The azea served by the project is University to I-94 and Lexington to Hamline. The exact parcel is the same as the one indicated in the contract. The STAR contract was entered into on August 30, 1996. Consh began in Apri11997 and was finished by June 6, 1997. The STAR funds were used to prepare the land at the playground project. The lot previously had a pazldng lot on it. The land was excavated to prepare for the play space. There are receipts in the central file verifying expenses. The expenses were excavation, landscaping, irrigation, benches, waste receptacles, fencing, labor, play equipment, and other items. There was volunteer labor involved in this project. Principally the participation has been present in the landscaping aspect of the project. The building's committee has been instmmental in the establishxnent of a Playground Caze Committee. This group is just getting underway and will partly be responsible far the future of the playground along with building maintenance at 1247 St. Anthony .. 96.013 Saint Paul Access Solution Project Metropolitan Center for Independent Living Descripfion: GrantAmount: $15,000 The objective of this program was to manage a revolving fund that would allow low income people with disabilities that live in the St. Paul area to conshuct access solutions such as ramps and low tread stairs Tlus pmject has been implemented. Four ramps and five sets ofhandicapped accessible stairs were installed. Overall eight Saint Paul househol8s were served. This project uses a modutaz access design which makes the steps and ramps portable. Some of the ramps have been recycled as many as six times. This is a positive design feature because many of the disabled users have relarively short life eazpectancies. Because of the recent aature of the Saint Pau1 project no equipment has been recycled. The program is set up like a revolving loan. The recipients haue to pay a monthly rent fee which does not charge interest. After five yeazs the renter will own the ramp. Jessaniiue W. Stevens Carroll Address 943 St. Anthon 1496 N. Gmtto 1806 E. Arlingf 1023 Tonnine & stairs More people aze able to live independently because of this project. Without it some may even be forced to be institutionalized. This independence is important because services by agencies are being curtailed . For example, Metro Mobility, a major provider of transportarion to the handicapped, will no longer carry disabled customers upstairs. The cost effective and portable access will make it easier all azound. As stated above eight households are being served by this project. The recipients aze half male and half female. About 75% are seniors and the rest aze not. 25% were African American and the reminder were White. 100 Q�- �� Contract Compliance: This project served all of Saint Paul. The STAR contract was signed 7uly 12,1996. Construction began in 7uly of 1996 and ended May of 1997. The STAR funds were used for the materials and labor necessary to build the ramps and stairs. Because of the contract eapiration, July 12, change in project leadership, and eligible inquiries from Saint Paul residents, not all of the funds were disbursed. Volunteer labor was present in four of the eight access improvements. Volunteer labor was offered by the AT&T Pioneers as well as the Jaycees. St. Paul home with a portable access ramp 101 96.014 John Alden Square Gazebo Grant Amount: $8,420 Neighbors of John Alden Square Description: The objective of this project has been the construction of a quality 21 foot in diameter, 10-sided, wooden framed gazebo, with fixll foundarion, security lighting, and a drinlang fountain/water source. The gazebo is nearing completion at this point. The basic shucture is done, as is the shingled roof and surface flooring. Yet to be completed aze inside seating, steps, and a handicapped-accessible ramp. Location of the gazebo is on Gibbs Street, between Brewster Street and Brewster Place. Planniug and building the gazebo has indeed been a community project, drawing neighbors together and creating an enhanced sense of community. For instance, Reade Adams, the project manager, said that neighbors have begun helping one another with home improvement projects as a result of their experience of working together in Alden Square Pazk. The gazebo project has also drawn people out of their homes and into public space, creating new friendships and renewing long-term relationships. A majority of the homes azound John Alden Square aze single-fanuly, owner-occupied dwellings, although there are a number of apartment complexes on Brewster Street, one block east of the pazk. The Brewster Apamnents, which aze closest to the park, aze home to a large contingent of Chinese university students and their extended fanulies. Although language differences aze a barrier to fluent communication, some parents and their children have attended various functions, and the family elders seem to enjoy the beaury and open spaces Alden Square provides. Linnea Home, a senior citizen group residence, is located one block north of the pazk. A small group of its more able- bodies residents has taken an interest in the gazebo project and conhibutes time and labor to the extent each person's age and physical condition allows. The lazgest gathering at the gazebo, a concert by the Saint Anthony Park Band, drew upwaras of seventy spectators. Contract Compliance: Locarion of the project is John Alden Square, as was designated in the contract. Ms. Adams noted that the gazebo and pazk gazdens serve a three block radius. The STAR contract was signed August 9, 1996, although construction began in July of that yeaz. Completion is expected by summer of 1998. Befare the STAR funds were disbursed, the Neighbors of John Alden Square had raised the requisite matching funds through volunteer labor hours, cash, and in-ldud donations. STAR funds were used primarily for lumber and foundation concrete. The original application and cost estimate for the STAR grant did not include a handicapped-accessible ramp, and several phases of construction required materials not specified in the blueprint, so addifional funds must be raised to cover these cost overruns. 102 � E � �: . Without the commilment of neighborhood volunteers, the gazebo project would never have become a reality. Except for foundation excavation and concrete work, volunteers haue handled every phase of the building process, donating more than 5,000 hours of time to construction and finish work. ,�, Comments: Ms. Adams noted that the project hit a few snags at the beginning because the original �� project manager, Jim Rogen, moved to northem Minnesota during the crucial start-up phase. She also said that the STAR contract was difficult to interpret and recommended that an informational � session be provided for future gantees to cover the requirements and limits of the contract, as well as non-compliance related issues. For construction projects, she suggested that a procedural checklist be provided that listed all the steps necessary toward obtaining a building permit. Another � idea that she thought might be helpfui to some cash-poor neighborhoods would be to release some of the STAR funds prior to presentation of receipts. Other suggestions included: 1) creation of a consulting team for STAR grant recipients; 2) appointment of a piiinary contact person with the � STAR program who would be familiar with grant requirements and project details; and 3) cooperative agreements with local suppliers to provide discounts on construcrion materials for STAR grant projects. � Editors Note: A PED account officer is assigned as the primary contact for each STAR project. Gazebo at John Aiden Squaze 103 1 96.016 Saint Anthony Park Facade Improvement Program Saint Anthony Park Business Association Description: The obj ective of this program was to spur building and business owners in St. Anthony Park to undertake permanent ea�terior improvements to their properties (many over 50 years old) with small grants (not to exceed $2,000 each) to 10-14 members of the St. Anthony Pazk Business Association. This project has been completed, with a total of 17 grants awazded. The improvements were extemal and consisted of items like windows, doors, and signage. The ftnancial matches on the projects were at a minimum of $1 private to $1 public. Some of the matches were as high as five to one. The 17 improvements that were created aze: Pazk Hazdwaze (2 ro ects Ado tive Families Panino's Restautant Debbie's Custom Hair (3 Hampden Pazk Foods (2 Kimly's Tailor & Gifts ro'ects ro�ects Milton S uare 4 ro'ects Rosa Mundi Mannin s S eed Mazket Because of this project the Saint Aathony Park Business Association has enriched its relarionship with its members. Sue Davern, the project manager, said that this acts as a real benefit of memberslup. Moreover she said the STAit helps the association keep in contact with Saint Paul's Depariment of Planning & Economic Development. The facade improvement proj ect has nurhued these vital nexuses. Additionally because the STAR funds were matched in many cases at a level greater than one to one, there has been mare inveshnent in the business district than originally expected. The project improvements aze serving the ten business owners wflo implemented tfiem and fheir customers. One of the businesses that received a grant, Adoptive Families, is a new business to the neighborhood that brought 12 new jobs. Contract CompGance: The businesses which have been awarded grants ha�e generally been within two blocks of the intersection of Como Avenue and Carter Avenue. Two of the recipient businesses are not in that business district, but they are in Saint Paul and in the neighborhood represented by the business association. The azea served by the association goes from the northetn border with Roseville to Grant Amount: $20,000 � 'Ll 104 � � � � � a�-c�� Interstate 94 and Hennepin to Transfer and Cleveland. This is coterminous with District 12, and it agrees with the contract. The STAR contract was entered into July 5,1996. The first facade improvement began in July 1996, and the last one was finished in December of 1997. Although sweat equity was used on each of the improvements, none was recorded as part of the match. This occurred because there was sufficient money to make a match without keeping track of labor. � Comments: Ms. Dauern indicated that her elcperiences with the STAR Program have been great. The projecYs account officer, 7ohn O'Brien, has been gteat according to Da�ern. She said people at PED seem available and open to questions. � � � � � � � � O � � � f [ITj. � 96.017 Salvation Army East Side Corps Community Center Parking Lot Enhancement Salvation Army of Saint Paul Grant Amonnt: $20,000 Description: The objective of trris project is to develop a parldng lot for 22 cazs across Lawson Avenue north of the new Salvation Army East Side Corps Community Center. This project has not been implemented because the Salvation Army has not acquired the site where the pazldng lot will be located. The property which is in tas forfeiture is adjacent to their Payne Avenue center. Once they obtain the property a pazldng lot will be placed on it. The lot is eapected to provide 22 additional spaces to serve tkeir new East Side location. It is eapected that the additional parking will be sufficient to handle the pazldng traffic created by the Salvation Army. It will assist the community by easing the demand for on-street pazldng. The pmject will serve the customers of the many programs that the Salvation Army offers. It will serve up to 22 vehicles. Contract Compliance: The pazldng lot is still intended to be placed on the pazcel proposed in the contract. The parcel is across Lawton and north of the community center. The contract was entered into August 1996. Although ttus project has not been started and was expected to be finished in 6/96, the puking lot is still intended to be paved. LJltimately this is e�cpected to be completed by the spring of 1998. The func}s are ptazmed to prepare the lot for development and paving. Volunteer participarion during implementation is unplanned for and not expected. 106 �J � � CJ � � � � � � � � � � � � � � �� .• 96.019 Stutcman Block Facade Upper Swede Hollow Neighborhood Association Description: Grant Amount: $20,000 The ob}ective of this project is to improve the facade of the Stutzman Block. This is the second phase of the renewal for this building located at 725 E. Seventh St. Improvements included in this effort aze concentrated on the west and north elevations of the building. Originally there had been a building to the west of 725 that was demolished a number of years ago. The newly exposed exterior wall consisted of fiberboard covered with vinyl siding. There were no window openings. The staircase to the second floor apartment, previously located inside the demolished structure, was not rebuilt to code. During this phase, windows on the first and second levels and a door to the adjoining patio were cut into a formerly blank facade, the exposed chimuey is being resurfaced, combination stomilscreen doors aze being installed on the north facade of the building, the staircase to the second floor apartment was relocated to the north side of the building, and the west end of the building was insulated, sheathed with plywood, resided with wood siding, and painted. This rehabilitation project helped provide the Upper Swede Hollow Neighborhoods Association the opportunity to demonstrate mazket demand for specialized, non- franchised commercial activity in the Dayton's Bluff azea. It demonstrated the aesthetic and economic benefits of using historic preservation as a development tool in Dayton's Bluff. Residents of the neighborhood demonstrated as well as witnessed the commercial strength and potential of their neighborhood. Cazol Carey, the project manager, stated that there were a number of spin-off benefits. Exterior building improvements l�ave made it easier to atiract residential tenants into apartments in the building. The cafe brings many professionals working at large nearby employment centers such as 3M, the Lafayette Park office complex, and Metro State University into the community to spend money, and learn about local housing opportunities. A local business, A Toast to Bread, supplies bakery products and soups for the restaurant, and snmmer produce is purchased from the Dayton's Bluff Children's Gazden project. The cafe's success has also imgroved the marketabi2ity of commercial space in the proposed redevelopment of a mixed-use building at 6th and Maria. Contract Compliance: The rehabilitation occurred at the address indicated in the contract. The contract was signed on July 26, 1995. The facade improvement began in June of 1996 and is expected to be completed in October of 1997. The STAR funds were used to put windows and a new door into the west side of the building; insulate, sheath, reside, and paint the west facade; resurface the cl�inuiey; relocate and rebuild the exterior stairway to the second floor apartment; and install new storm/screen doors on the north side of the building. 107 � 1996 Neighborhood STAR Loan and Grant Program 96.103 394 Dayton Avenue Rehabilitation Project Grant Amonnt: $40,000 College of Visual Arts Loan AmounY: $60,000 Description: The STAR funds will be used for the rehabilitation of 394 Dayton to serve as the College of Visual Arts' library, supplemental media center, additional classrooms, offices, and studios. STAR funds have also been used to develop an adjoining pazking facility. A former aparhnent complex is being converted into a library and office azea for the College of Visual Arts. The building has been gutted, the interior has been reconfigured, and a dilapidated addilion that was on the back of the building has been tom down. As a result of these changes iY was possible not only to create space for the library but also to add a new addition and allot office space. The space will be used for liberal arts faculty, a learning resource center, a cazeer resource center, and a study area for the students. As of August 7, 1997, there were a few more things that needed to be done which included a new exterior door on Dayton, and landscaping for the yazd. This pmject will allow the students more space to study in the library. It will free up space at the college's adnunisiration building , 344 Sununit, to make a class room and a conference room. The rehabilitated building will provide space for the faculty to prepate for lessons and confer with students. The improvements will generate a more attractive environment for students and could increase enrollment and in turn increase faculiy. This pmject will help the CVA meet an improved librazy requirement placed upon them by the North Central Association of Colleges and Schools to secure full regional accreditation . Full accreditation will make it easier for CVA students to transfer and to progress into graduate school. This will make the CVA more attractive and competitive in the field of higher education. T'he neighborhood wiR benefit from the project because a blighted building will be improved and Yhe expected increase in activity and attendance at the CVA will bolster the businesses in the azea. The renovated building will serve the 230 students who attend the CVA, its 47 faculty, the administration, sutmunding properties holders, and area businesses. In particulaz the increased strength of the CVA will help reinforce the local arts scene as present in Lowertown and its annual Art Crawl. Moreover when the library is finished and a security system is installed it will be open to the public. ��'. � � Contract Compliance: Li � � � � � � � � � � ;� � � � a�-iag This project has been implemented at the site discussed in the contract. The address is 394 Dayton. The area served by this project includes Saint Paul and its environs. The student body originates from numerous places. In total the students come from 12 states and 6 countries. The STAR con�act was signed on February 6, 1997. Construction began on April 10, 1997 and was completed by the fall of 1997. The building is now being occupied by the coliege. The STAR funds were used to demolish the reaz end of the building and replace it with a new entrance. The entrance area includes a handicapped equipped bathroom and ramped accessibility. The interior was gutted, sheet rock will be placed on the walls, and the interior space was configured to allow for four rooms on the second floor and four on the first. Volunteer participaUon was not present during the implementation phase save the movement of fiunishings and resources by a few students. Comments: The media specialist, Mary Beth Frasczak, said the new library space is critical to CVA. Now the students have space to spread out and look at drawings, sketches, and designs. 109 � L1 96.106 Gateway to Como Park Lighting Como Commnnity Council-District 10 Grant Amount: $41,207 � Description: The objecrive of this project is to install decorarive lighting on the sma11 commercial strip on Como Avenue neaz Sneliing Avenue as part of the neighborhood small azea plan. The plan calls far the promotion of business development, property maintenance, and safety. The project will have siguificant visual impact and complements the 1995 street impmvements. STAR funds will be used to fund 75% of the cost to install decorateve lighting on Como Ave. beriveen Snelliag and Arona St. This project has not been implemented. The proposal is to install 18 lamps along Como east of Snelling. The Department of Public Works eapect that this will be too many lamp for the designated stretch of Como. Thus they might have to lower the number of laznps or extend the area. Because this pmject has not been implemented it has achieved nothing but it is e�cpected to generate more business acrivity, maintenance, and safety. This has been suggested because recent street paving and landscaping on Como ha�e resulted in the greexring of the azea and increased business occupancy ntes. Additionally it is eacpected to have a wide impact because of its pmximity to the fair grounds, the Como Pazk and Zoo, and Snelling Avenue. The project will serve the businesses on Como. It will in turn serve people from outside of St. Paul as well as within because of the regional popularity of surrounding attractions. It is undetermined how many it will serve Geographically this project is to be located between Snelling and Arona on Como. It has been proposed that it be extended to the west side of Snelling but that has not been detenuined. Theproject skould begin in October.194? and be finished by November 1997. T7�e STAR has not made a difference as to the speed at which tlus pmject is being implemented at least not up to this point. No STAR funds haue been used. The reason thaY tlus is taldng more time is because an assessment is involved. Each property owner had to sign an ageement that they would pay annual assessments. All but two of the properiy owners agreed, and since then the two business that withheld their approval have moved. With an assessment the city council must approve the improvement. The approval of the unprovement has not been reviewed by the council and should be so by October 1997. Neighborhood participation will not be involved during the implementation phase of the project. Public Works will handle the execurion of the plan. � 110 � � � � � � � �� ,� � � � �8- iag 96.109 Arcade/Maryland Face to Face Face to Face Health and Counseling Services Description: Grant Amount: $ 9,050 Loan Amount: $39,370 The objectives of this project aze to landscape, construct a play azea, resurface a parking lot, light ffie pazldng lot, and stucco the south side of the building at 1165 Arcade St. The STAR project at 1165 Arcade has not been implemented. The project is expected to include a gazden space and play azea on the west side of the building and a reconfigured parking lot and refurbished exterior wall on the south side. The newly designed and resurfaced pazking area will eliminate an entrance and lane that run next to the building. A landscaped green area will occupy the former lane. The side entrance to the building will be ramped. A new lane will be located along the southwest portion of the property. A row of pazldng will be lost through the unprovement. 53 spaces will be available. The south side of the building will be stuccoed again. The grant portion of the funds will create a green space azound ffie back. Former loading docks will be transformed into parios. A peace garden will be established. A basketball court will be set up. With the improvements the lot and building will be safer and more visually appealing. Accessibility wiil be increased and liability should be decreased. The side of the building which leaks and has sustained water damage will be repaired and 'unproved. The children who attend the Academy and from the neighborhood will have a safer and more convenient area to play. Overall it is expected that the project will instill a sense of pride, peace, and respect in the clients and neighbors. The azea is sprucing up. A nearby flower shop and laundromat have undergone renovation. However these developments precede the STAR project, and thus they are probably not spin off effects. These improvements will serve the 3,000 clients that Face to Face serves over the course of a year. The staff is served by the gazden and the parking lot. The youth aze served by the play area. The parking lot serves the neighborhood children wka sometimes play in it by pmviding a safer envirorrment. Contract Compliance: The East Side is served through this project. In particular the Payne / Phalen and Dayton's Bluff neighborhoods receive benefit. The wider community of Saint Paut and its environs aze also served. The contract was signed on Febniary 7, 1997. The project should begin on the third week in August �, 1997 and be completed by September 26, 1997. This progress does not meet the expectations set forth in the contract which showed completion of the project by the end of July 1997. Ms. Ricketts cited the main reason why the project took longer than eapected: before project implementation can � begin, the City must approve the vacation of the alley. This approval has not happened yet and has taken longer than expected. � �, Community participation will be a component of ttris project. The peace garden at the rear of the building will be planted by volunteers. 111 � � Ms. Rickets said that the grant element of the financial package made the STAR funds more � attractive. She indicated that the bank seemed to trust Face to Face more than did the City. The � bank did not place as rigorous a set of requirements on them for securing the loan as did the City. The project is now 90% complete as of the end of November, 1997. 112 � � � � � q�- � a� 96.114 Minnehaha Mall Enhancement FYogtown Merchants Associarion Descriprion: Grant Amonnt: $90,000 The objecrives of this project are as follows (i) Update and enhance main entry sign, make high impact enhyway enhancements (2) new center cut driveway (3) define "driveways" in pazking lot, add speed bumps, create a center "town square°, banners and other enl�aucement, (4) and make facade improvements to retail structures. � The project is 75% completed. The entrance, new signage, and pazldng lot definition have been completed. Facade painting was started in the fall of 1997 and will be completed in the spring of 1998. Landscaping will be completed in the spring, as well as more cement work and banners. � � �� It is expected that this project will provide a more pleasant environment for customers to shop. Despite the impxovements Mr. Stuber indicated that the rent should not have to increase. It might stem the flight of commerce from the Frogtown neighborhood. The occupancy rate at the plaza was at 100% before the closing of Snyder Drug Store in late December, 1997. There is work going on to locate a Best for Less food store in that space. The owners of Gala and the owners of the property that Snyder's was in aze worldng with the City's Dept. Of Planning and Economic Development to make this happen. The Best for Less would be run by the owners of Gala. � ` The enhancement project is eapected to serve the community by maintaining the viability of the Minnehaha shopping plaza. Despite I'united traffic flows along Nlinnehaha and Pierce Butler this renovation may act as an invitation to keep people irading in the neighborhood and even bring � people into and through the neighbarhood. Many people auoid the Frogtown neighborhood, and this enhancement might alter people's perception. In this climate business acrivity at the mall may even increase. Contract Compliance: The azea that will be served by the pmject extends from the raikoad line on the north to University on the south and Lexington on the east to Dale on the west. The actual site of the improvement , Minnehaha Mall, is still intended as such. The original STAR coniract was signed on January 6, 1997. It was lost by both sides. A new copy was re-signed on July 18, 1997. Mr. Stuber expects that the project will get underway by the end of August 1997. It is should be completed by November 1997. The STAR funds will be used for signage, parking lot improvements, painting, and landscaping. There has been and there will be community participarion during the implementation of the proj ect. A volunteer consultant has coordinated all the design work for the mall. Sweat equity will be part of the project in terms of the landscaping. 113 96.115 Large Format Printers Giles Guggemos, Inc. Description: Grant Amonnt: $ 10,000 Loan Amount: $145,000 The objective of this project is to purchase and install a Da Vinci 5700 printer. The project has not been implemented. As of August 7, 1997 Mr. Guggemos was in final negotiations for a lazge format printer. Tlus printer has been custom-designed in order to create lazge two-sided banners rapidly. Speci&cally these banners are being tazgeted for trade shows, but fhe mazket is eacpanding to other venues. The machine will be able to paint a banner that is 100 feet by 18 feet. It can paint different images on each side. It will be able to create images on many mediums without seazns. The printer has three resolution settings: low, medium, and high. The production rate for low resolution is 700 squaze feet an eight hour shift; medium is 400 square feet, and high is 210. This machine will be the first of its kind in the United States. Moreover it is ecologically sensitive because it does not use solvent based inks rather water bome inks. The lazge format printer will be set up at their priat shop at 2303 Wycliff. The custom-designed printer will allow Guggemos to offer a superior pmduct more quickly. Mr. Guggemos will be able to continue to charge his clients the same rate per square foot as he did with the last generation of technology because he received a competitive deal on the price of the lazge format printer. This savings was possible because the over-seas manufacturer of ffie machine wants to pmmote this equipment in the United States. Additionally the new printer's high quality product is e�pected to propel Guggemos by e�cpanding its customer base. As a resulY it is also elcpected that two new jobs will be created to staff the new equipment. The presence of this lazge format printer will also help Saint Paul businesses. Guggemos intends to purchase supplies and materials for the printer from three Saint Paul companies. Because of the nature of the product that Guggemos will be supplying, its product will serve a national market. Mr. Guggemos said that although most of its clients are outside of the Saint Paul area that its central location and access to a hub airport makes it ideal for the vast market he is serving. As stated above the project will benefit Guggemos and staff as well as suppliers in the Saint Paul azea. Contract Compliance: This printer will serve the entire United States market with a uniquely clear and ecologically friendly means of creating banners. The contract was signed February 7, 1997. There ha�e been a few delays in getting the printer. First, Mr. Guggemos leazned after weeks of inirial negotiations that the goup they were talking to did not represent the manufacturer of the printer. IIe then hired a I�owledgeable representative to work direcfly with the manufactureis. Second the price chazged took substantial time to negotiate. 114 a�� L� The original price was expected to be $600,000, and currenfly it has been lowered to $200,000. Lastly it has taken more time than expected because the specifications applied to this machine are unprecedented. On August 7, 1997 it was believed that the final agreement and purchase of the printer would be completed within a week. The printer is expected to be delivered within five weeks of that time. The STAR funds will be used on the main flat bed reel to reel printer and the supporting computer components. This is expected to amount to $200,000. Neighborhood participation has not been an aspect of this project. Comments: Mr. Guggemos thinks he is being penalized by PED because he received a better deal than he originally thought. Fiis STAR grant was lowered from $20,000 to $10,000 once it was realized that the printer's price would be lower. He is also concemed because the STAR program starts accruing interest to the loan one year after the contract is signed rather than one year after the money is drawn. Mr. Guggemos believes his situation has extenuafing circumstances and that he should be given the yeaz grace period following the disbursement of the loan. 115 96.119 Highland Village Revitalization Grant Amtount: $99,200 Highland Area Community Council & Highland Business Association Description: The objectives of this project will be to improve the streetscape and customer pazldng in the heart of Highland Village. It will be accomplished by enhancing and adding customer parking in tlus vibrant commercial azea It will also be done by updating and repairing improvements made under the Highland Village Plan, completed in 1987, repairing and adding planters, fencing, installing trash receptacles and new landscaping of both public and private property. This is a cooperarive effort between the district council and Highland azea businesses and property owaers. This project has been partially implemented. The initial pmject included loan and gant funds. The loan component of the pmject was dropped in January 1997. As part of the project the planters which line the intersecrion of For3 Parkway and Cleveland haue been refurbished, but not replaced as indicated in the contract. Evergreen shrubs that were in the planters have been replaced with flowering perennials. The three medians that converge at the intersection of Cleveland and Ford ha�e been replanted, wood chips, and bricks have been laid. Three business store front have been renovated, and seven more are sIated for renewal. Additionally bike loops wiII be added along Ford and Cleveland, parlang lots with a total of 130 pazking spaces will be repaved, and fencing will be added at the eastem end of the properly on the southeast comer of the intersection. Because of the grant and loan money that the STAR program awazded to improve HigUland Village the business association for the community was able to offer its members an opportunity to receive an addirional resource that tUey otherwise might not have had. This service reaffirmed the role of the business association for the village. According to the pmject coordinators, Shawn Bartsh, Beth Berg, and Crayle Summers, the improvements to the village gave the community a better commerce center in which to conduct transactions. Because of the physical improvements, Highland Village is more appealing and competitive. Business aze staying and growing stronger. The improvements are giving them an edge. This project serves the residents of the Highland Park neighborhood. It also serves customers from outside the neighborhood who patronize the village because of its unique services and ambience. Contract CompGance: The area served by this project includes all of southwest Saint Paul. It covers an azea from the Mississippi River and West 7th Streei to the Grand Avenue Commercial Zone. The STAR contract was entered into February 7, 1997. The implementation of the improvements began in the early part of 1997 and should be completed by the end of 1997. 116 � � � j� , ♦ The STAR funds were used to pay for a portion of all the improvements which were part of this project. The money has gone toward three business facade unprovements and creating additional visual complements and physical amenities at the intersection of Ford Parkway and Cleveland. � There has been no sweat equity present during the implementation stages of this project. All of the required labor was contracted. %i Comments: The pmj ect coordinators stated that this has taken more time that they eacpected because ;� they did not have sufficient resources to administer the project. With some allohnent toward � administration fees the project would have been accomplished more rapidly in their view. Ms. Bartsh, one of the project coordinators, said that getting the match was not too difficult but finding the time was. � � � � � �� 117 � � 96.122 Sel-Dale Laundromat John F. Krebsbach Jr. Grant Amount: $30,000 � Seed Capital: $20,000 Description: The objecrive of this project was to acquire and renovate 662-664 Selby into a laundromat . This project has been implemented. A run down vacant building that once served as a night club was gutted and partially razed. Two of the walls were replaced and part of the roof. The 3,000 squaze foot interior was prepazed to be converted into a laundromat. The overall pmject cost approximately $600,000. It houses 38 washers and 36 dryers. It is also equipped with handicapped accessible bathrooms. As part of the project a garage direcfly to the west of the laundromat was tom down. A pazldng lot was put in its place. The addresses of these properties aze 662 & 664 Selby respectively. Mr. Krebsbach, the laundromat owner, also owns a business which rehabilitates housing. He generally does not put washers and dryers in the houses and duplexes which he rents out. Additionally he realized that there were no public laundry facilities between Grand and University, so he decided that this was a good niche and a convenience to some of tris tenants. Additionally Mr. Krebsbach saw flus as a convenience to the neighborhood in general. His laundromat offers laundry delivery to shut-ins at a discount. Along with other near by development the laundromat is adding to the attitude that ttris area can once again be a thriving commercial district. The Sel-Dale Laundromat has a customer base of 500-600 faznilies. Its drop off service has appro�mately 40 customeis and is increasing. The racial mix of the laundromat is diverse with no one group being a majority. The business has created three full-time jobs and a part-time job. The pmject occurred at the site proposed in the contract. Mr. Krebsbach indicated that the service azea for the laundromat is from downtown on the east to Sne]Iing on the west and Grand on the south to Minnehaha on ttte north. The contract was signed on October 3, 1996. Construction began in October 1996 and was completed by January 25, 1997. The winter weather caused up to a month delay according to Krebsbach. The STAR facilitated the delay because of when its cycle begins. Mr. Krebsbach did complete the entire project within the prescribed times of October 1996 to August 1997. T'he STAR funds were used to pay for water and sewer access and architect bills. These amounted to $50,000. Receipts and the reimbursement report in the ceniral file confirmed these eapenses. The receipts include expenses for plumbing, roofing, IIooring, and elechic. Mr. Krebsbach was disappointed with how late in the year lus project had to start in light of the STAR cycles. He could not start anything until the contract was signed and that was not until October. Winter slowed him down. In fact lus equipment supplier Speed Queen wanted to penalize him for startiag later than they agreed upon. He was also discouraged that he had to pay sewer and 118 ��- �a� water access charges. West Saint Paul offered to chazge him no access fees. He did not understand why Saint Paul would chazge despite the fact that they aze eagerly trying to attract new businesses. 119 � 96.123 Builtling Community and NeigLborhood Capacity Lao Family Commnnity of Minnesota Description: Grant Amount: $25,000 � The objective of this project is to repair the roo� flooring, windows, interior walls, and pazking lot of the Lao Family Community Center. In addition landscaping of the siurounding grounds is planned. This project is partially iunplemented. The Laos Family Community Center is currenfly being renovated. A flooded second floor auditorium has had its roof repaired. The floor of the tYus space was linoleum but af�er the flooding it began to crack and curt up. It has been replaced with a terrazzo floorwluch is set in concrete. The auditorium is 3,100 squaze feet. Mr. Vang, the project director, said that they still plan to repair the pazldng lot and the windows. Questions haue come up abouf the eIigibiIity of the roof and windows. Tfie roof was fixed rivo months before the coniract was signed, and the window work is for tinting. According to Joan Trulsen the first improvement is reimbursable, but the second is not. Mr. Vang did not discuss interior wall improvements, but while visiting the site it appeared that volunteers were painting the auditorium. Appazently they do not plan to use STAR funds for that part of the project. This project has helped the center pmvide an appealiug meeting azea for the community. Mr. Vang said with the new floor it will be easier to clean. It is an asset to the entire community not just the Htnong population. Mr. Vang said that on average two groups a day use the auditorium. The sizes of the groups vary from 50 to 400. However use is not limited to the East Asian communities. In fact, according to Mr. Vang 40% of the auditorium's usage comes from the "mainstream" population. He said they like it because it is close to the capitol, close to downtown, and there is sufficient pazking. Contract Compliance: All of the STAR improvements have or will be done to the property at 320 W. University. This information concurs with the address set forth in the contract. The geographic azea that the project serves is wide and includes the Twin Cities and much ofMinnesota. The STAR contract was entered into December 15, 1996. They began with the roof in November 1996. The improvement of the auditorium floor began in mid-May 1997 and was completed by 7une 20, 1997. Mr. Vang believes that the project will be fully completed by the end of 1997. The STAR fixnds have been requested to reimburse expenses associated with the clean up and laying ofthe new floor. These e�tpenses were $3,300 and $30,000 respectively. Mr. Vang thought there was about $5,000 still not reunbursed. He plans to use that on the pazking lot and windows. f`�17 \� � � � � � � �" � � � � � � � � � � � I � �! Mr. Vang indicated that all the work was contracted out. He said there was no sweat equity involved. It appeazed that there was a volunteer effort undenvay involving the painting of the auditoriunn walls. Mr. Vang did not mention this but perhaps they are not using it as part of the match. Comments: Mr. Vang thinks that if the City really wants to build in the community that the STAR should not require a match especially on the grants. He said that it would be easier to borrow the money from the STAR and pay it back than to be given half the money and have to raise the other half. 121 96.126 MacLaren Hill Condominium Association Reconstruction Project MacLaren Hill Condominium Association Loan Amonnt: $270,000 Description: The objective of this project was to correct construcrion and design defects by the original developer, contractors, and azclutect. Work included eliminating garage gas infiltration, addressing serious water infiltration through site improvements, replacing rotted decks on the condominiums and entrance canopies on the townhouses, and replacing rotted siding and painting interiors and exteriors. This project has been implemented as the associarion has determinecL Because of structural defects and weathering many of the wooden decks had become unsafe and had to be closed. Because of the STAR, MacLaren Hill was able to renovate 84 decks and remove 32 defective canopies. Alttiough thete aze 122 units in the condominium portion of the development, 38 did not need any work because the deck designs were sound. The new upper level decks were reinforced with two steel supports and the wood was replaced with sealed cedar. Metal railing runs on top of cedar sides of the deck. The decks' dimensions aze 6 feet by 9 feet. Half of the ground levei decks were also made of cedar. In an effort to reduce maintenance and deterioration these were all replaced with concrete patios. Other improvements that were done in concert with the decks included the creation of a circulation system in the common areas of the condominium in order to reduce the accumulation of moisture and new external siding installed with vapor barriers. One depariure from the contract was the fact that all the canopies were not replaced. The decision was left up to the resident and some declined the option because of the additional assessment. As a result of this project the condominium association was able to eliminate a safety hazard. Moreover it was able to improve the appearance of the community. Peopie aze now able to get outdoors conveniently and this has helped to build community. The association is currently scheduled to paint and landscape the buildings. This kas helped stabilize a residential area and stave off the units from being tumed into rental properties. This project serves the residents of MacLazen Hills and the surrounding residents. There are approximateIy 140 members of the condominium association. Contract Compliance: The properties that were served were 13�2, 1390, 1392 Cazling Dr. and 1335-1413 Spencer Road. This agrees with properties discussed in the contract. The STAR contract was signed on October 16, 1996. Construckon began in October 1996 and ended in April 1997. The work was completed within the progress schedule discussed in the contract. The designated comple6on date was 8/97. There were a few hindrances according to the project manager, Tom Spivey. First the conlractor had health issues which kept him from worlang. Second the winter weather slowed the process down. Third, there was a work stoppage associated with a misunderstauding about workers' wages and benefits. In ttris case some of the workers who received STAR funds were not being compensated for benefits that they were guaranteed under the 122 � � � � � � � � � , � � ,� � � � � � � !� . � STAR. To compensate, the contractor increased the wages for workers without benefits. The workers with benefits compiained that the others were being paid more, and until it was corrected they stopped worldng. This stopped work for a time but Mr. Spivey did not say how long. The STAR funds were used to renovate 84 wooden decks and concrete patios as well as replace a few wooden canopy overhangs. The money went to cupentry, materials, and sealant. The work was conducted through a contractor and did not involve volunteer labor. Comments: The process was slowed down because of labor requirements and the speed at which bids were offered. Mr. Spivey described the process as long. Restored decks at MacLaren Hill Condominiums 123 � 96.128 Minnesota Boat Club Restoration Minnesota Boat Club Grant Amount: $55,000 � Descripfion: The project consists of Phase 1 renovation of the Minnesota Boat Club (MBC), home of the oldest athleric insritution in Minnesota, A Saint Paul landmark on the National Historic Registry. Improvements include renovation of extema2 parios and chinuieys, replacement of fhe second level great room flooring, restoration of the extemal stucco and restoration of windows. The home of the Minnesota Boat Club on Raspberry Island has deteriorated due to floods and vandalism. The restorarion is partially completed. The patios and clunmeys have been refurbished. The repairing and replacing of windows, new stucco, and restoration of the floor sfill remain to be done. Other improvements haue been implemented at the same time however they are not part of the STAR renovation. They include landscaping and removal of heavy debris accumulation after this winter. According to Doug Olson, the project manager, these impmvements aze maldng the club look better. Moreover these efforts aze protecting an historic site. This project is benefiting the community at large because local and regional schools take advantage of the lraining programs that the boat club offers. High school students from Central and Forest Lake aze well represented among the membership as are college students from St. Thomas and Cazleton. The membership of the club fluctuates from 70 to 125. The number of new people involved in 1997 jumped by 40. In prior years it had only risen by 20 per yeaz. The age composition of the club breaks down as follows: 25% high school students, 40% college students, 25% professionals, and 10% over 50 years of age. Contract Complianee: The STAR funds are specifically serving the club house site at 1 South Wabasha on Raspberry Island This agrees with the terms of the contract. Generally the Minnesota Boat Club serves the East Metro. The STAR contract was signed on January 20, 1997. Work began on the patios and chimueys in early spring after the spring flood debris was cleared. This work was completed by eazly snmmer. The bids on the windows were just received and wi12 be initiated and completed by the end of fall. Olson eapected that the floor would be replaced over the winter of 1998. The primary delays on this project have been the flood and delays getting matches for the funds. The STAR funds have been used for Yhe patios and clunuieys. It cost about $ Z 0,000. ABer receiving recent bids it is expected that windows wili wst in the mid-$30,000 range. Olson was unsure about the costs associated with the new floor and stucco. Since the flood waters earlier in 1997 subsided the main delay has been the difficulty of getting matching funds. � 124 � � � � � � � �" � � � � � � � � � � ��-ia� Participation of the members was part of this project. The azchitecturai design was donated. Additionaliy boat bay doors and windows were built by other members. Comments: Olson indicated that he thought there was too much paperwork. He said it was difficult to get the targeted vendors to come out and give a bid on the work. The Minnesota Boat Club 125 � 96.133 Frogtown Entrepreneur Center Frogtown Entrepreneur Center, LLC Description: Loan Amount: $ 86,500 Seed Capital: $154,500 As part of collaborarive effort to foster economic development activifies in the University and Dale area, Neighborhood Development Center, Inc. (NDC) and Frogtown Action Alliance (FAA) through Frogtown Entrepreneur Center, LLC witl acquire and renovate the former Dakota Microfilm building located at 501 North Dale Street into the Frogtown Entrepreneur Center which will be an incubator facility for neighborhood/Saint Paul entrepreneurs from which to operate their businesses. In November, 1997, the project was completed and began leasing to tenants. There aze currently 11 tenants in the building including Inner City Rehab; Moua International Communications; Multi- Pure; Newell Abatement Service; Queenie's Bus Tours; Steven Insurance; Security Financial Consultants, Inc.; Robert McClain Photography; the Siebert Group; and Non-Profit Consulting Associates. Only two spaces remain vacant. The project has taken a vacant and blighted building and renovated it into an attracfive, productive community asset. As a result of the proj ect, eleven neighborhood businesses aze growing and serving the Frogtown community. Contract Compliance: The site that was originally designated in the contract is the site at which the project is being implemented. It will serve all of Saint Paul but specifically benefit the azea from Rice to Lexington and the railroad to University Avenue. The STAR contract was entered into December 30, 1996. Renovation began in May of 1997 and was completed in November 1997, when the project opened for business. The STAR funds were used for acquisition and renewal of the building at 501 N. Dale Street. Most of the pmject was implemented through contracted labor, however, there was some sweat equity as part of the match. 126 � � � � � � � � � � � � 96.141 Phalen Corridor: Williams Hill The City of Saint Paul Port Authority Description: a�-ca� Grant Amouut: $250,000 The objecrive of this project is to clean up blighted and poliuted land to create living wage jobs. This is a continuation of project #95.158. The following is a copy of the report from that interview. This project , which will occupy the Williams Hill secfion of Saint Paul, has not been implemented. This is a business park development. It will encompass five parcels on a total site area of 25 acres which can be developed. The pazk is zoned I-1 usage, so it will be targeted toward light manufacturing and industry. Currently the land is going through remediation. After that the land will be reshaped to accommodate the planned activity. Later the urilities and roads will be added. "The STAR funding is crirical," accozding to project manager, John Young. There is a nartow margin for error in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awazding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are chazged with spnrring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that wiil occupy the pazk, there will be a recognizable positive effect. For instance, the Port Authority requires 60% ofthe project tenants' employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the pazk employ one worker per 1,000 squaze feet of enclosed space. This acts in combination with the fact that the Port also mandates that businesses develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees will work in the business pazk when it is fully developed. This is strengthened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. Tbe project will directly serve approximately 5 light manufacturers and their employees. Factors � such as the locally made content of the inputs and the markets of the final products will deternvne who is being served. � Contract Compliance: � The project is still set to fall within the boundaries established in the contract. The service area is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northern rail line tracks on the north and east. � � � � The coniract for this project was entered into March 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The mads and utility services aze expected to be finished by September 1998. 127 �l No STAR funds have been used on this project because no capital impmvements have been made. � First remediation must be completed. After a month(9/9'� that process should be complete. This ' necessary step has slowed the completion process. Also funds that are pending for this project from economic development must be received before the STAR funds can be used. If they are not then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors � aze addressed Mr. Young believes the total project should be finished and ready for business development by September 1998. � 1 � � � � � � I i � � � 12g � � � � � � � � � 96.145 RAP Midway Area Head Start Program Ramsey Action Programs, Inc. Description: �i . � GrantAmount: $100,000 Loan Amount: $100,000 The objective of ttris project was to renovate 6,725 square feet of space in the building located at 450 N. Syndicate. It is being used for the Bigelow Head Start Program and includes an outdoor play azea currently under construction. Tlris project is 100% completed but not all of the features indicated in the contract will be realized as a result of STAR funds. The 6,725 square feet of interior space at 450 North Syndicate designated for the Head Start Progam have been renovated, including four classrooms, two offices for the center manager and social workers, a pazent room and ldtchen. Each classroom is brightly colored, with excellent natural light, a utility azea, and mud room space. Each classroom has two toilets and sink. The playground renovafion ($55,000) is funded with community development block grant funds. This Head Start Center complements a wide array of other social services housed at the Bigelow � Building and promotes easy access by clients to other services. The Bigelow location is also beneficial to residents of a nearby lazge rental complex at 1247 St. Anthony, which offers Section 8 housing. Pazents and children do not haue to cross a busy thoroughfare to reach the center. � � � � � � � � The center serves 136 children: 17 children per classroom session. The children attend either the moming or afternoon session. During the first yeaz 62% of the children enrolled aze African American, 32% are Asian, 3% aze Hispanic, and 2% are Caucasian. Contract Compliance: The geographic boundaries for the center aze not absolutely defined, however most attending children live in the Midway area. The contract was signed on February 7, 1997. Conshuction began June 1997 and ended September 16, 1997. In the contract the completion month set forth was 7uly 1997. The STAR budget was used to completely renovate designated space for Head Start in the Bigelow Building. The expenditure covered the gutting of the interior, putting up new walls, replacing the ceiling and the floor, n,nning new plumbing and electricity, and putting in bathrooms for each rooms. Comments: According to Mr. Pickering, using the STAR Program makes it easier to get matching funds and contributes to community revitalization. 129 96.151 Coordinated Housing Investment Program(CffiP) Local Initiatives Support Corporation(LISC) Description: Grant Amount: $200,000 Loan Amount: $300,000 CHIP is designed to stimulate purchase/rehabilitation and refinance/rehabilitation mortgage transaction in selected St. Paul neighborhoods. The objective of this initiative is to implement, in a coordivated, cost-effective faskion, a set of &naacial and non-financial pro�am components that will assist in removing barriers that have traditionally kept private lenders from doing purchase/rehabilitation lending in more economically distressed market azeas. This project has not been implemented. Local Initiatives Support Corporation is the lead agency on tlris project. The project will concentrate on two neighborhoods which e�ibit difficutty getting traditional bank financing yet ha�e pmven rewrds of getting homes rehabilitated. The chosen neighborhoods aze the East Side and the West Side. The East Side is comprised of three groups: Dayton's Bluff Neighborhood Housing Services, East Side Neighborhood Development Company, and North East Neighborhoods Development Corporarion. LISC has determined which financial institutions will partner with them. After going through a competitive selection process First Bank was chosen. Mr. Peacock, the project manager, thought that Twin Cities Federal would be a designated lender for the program despite the fact that they submitted their request to be part of the program late. The project will not limit the type of recipients. In particulaz a11 the participants do not have to be first time home buyers. The project will help with acquisitaon as well as rehabilitarion. The program will offer second mortgages and gap financing. Home values will not be in excess of $100,000. It is not abundantly cleaz exactly how they aze going to increase home ownership. He said there is tto restriction on the housing status of the perspective owner, and there is going to be no special effort placed on tryingto convert formerty rented pmpertiesto flome ownerslup. Cf�P sees itseIf as a better alternative in some situations than is the City's Houses to Homes Program. CHIP only relies on some g�vemment assistance, and it intervenes eazlier in the deterioration process. Although no homes have gone through tlus process, it has given LISC a tool to combat urban decay. The community should also benefit from tFus reinvestment, Tfie seIected neighborhoods should stabilize as they see more resources stay in the area. People's willingness to finance a home with gap finaucing speaks volumes of the confidence that will filter through the community gradually. To enlist real estate agents the West Side community is planning to pay the agent a percentage of the price of rehabilitation rather then just a commission on the sales price. Because implementation has not occurred yet it is not clear, however it appears that the NDCs and the neighborhoods they serve will be benefited by the projects. It is still expected that 35 homes will be served. 130 �. � � �� 1 � � �� q�- la� Contract Compliance: This project will serve the geographical azeas expressed eazlier. The contract for this project was signed on Febniary 7, 1997. The project got underway in June 1997. The financial partners were chosen by mid- 7uly 1997. It is expected that the purchase/rehab will begin in October 1997 and should be completed before ttte end date discussed in the contract of January 1999. The STAR funds will be used for rehabilitation and some acquisirion. The mix of loan and grant will vary from home to home and neighborhood to neighborhood. Homes located in enterprise communities will only get loans because they are getting help from a fund other than the STAR. If the home is outside of one of these azeas it will be eligible for grant and loan funds. The loan will haue a 2% interest rate on it. Comments: Mr. Peacock thinks that worldng with the STAR fund can be onerous. There aze many requirements. He does not believe that it is being administered in a way that it can serve its intended audience--those unable to use private financing. He subscribes to the Urban Initiatives Model as admanistered through the Muuiesota Deparhnent of Trade and Economic Development. The model shows that loan recourse goes to the end borrower. The community paztner (the intermediary agency) is not responsible for paying the monies back to the program. The reason that recowse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regularions and requirements. 131 � 96157 & 96.158 Salvation Army Community Center The Salvation Army of Saint Paul Description: The objective of this project is to insulate and coat eacterior walls of the e�cisting Salvation Army buildings in addition to building new construction which will create a unified appearance and increase the energy efficiency of the building. The project will also include a new parking azea; landscaping; developing a secure playground; demolishing the condemned Gem Building; demolishing an elcisting house on aa adjacent pmperty and establishing urban pazk. This project is currently being implemented. The portion which was completed was the demolition of an old house on a triangulaz property between tFte Saivation Army and West Seventh St. A temporary pazking azea has been placed on the cleazed lot. As progress is made on the proj ect the space is eacpected to be used as a sma11 pazk, Across Smith, the former Gem Theater is located. Tlus structure which was built in 1911 has been condemned. Since it was acquired by the Salvation Army it has functioned as the site for its social services program. This structure is slated for demolition on August 7, 1997. Up to this point the land has been prepazed for redevelopment. Contamination from old gas tanks has been cleaned up, and an old well for coolittg the theater has been capped. A new 2 floor structure will be set on the basement of the former theater. The new space will house around 10 offices, four class rooms, and a nursery. The second aspect of construction and impmvement will include the rehabilitation of an old gymnasium space into a dining ha11, latchen, and fitness room. With the completion of ttris redevelopment, the Salvariott Army will be able to offer its clients more privacy in the new social services area. It will be able to provide meals to senior citizens and the homeless in a safe and clean environment Tlvs pmject will serve the community by improving the appearance of a gateway into an historic neighborhood. This facility provides services to approximately 500 people a day. Not a11 of them wi11 be using the new space, but indirectly it will positively impact the remainder of the site because it will allow the Salvation Army to provide sufficient space for all activities thus ending the competirion for limited space. DirecUy it will heip about 200 people who use the senior and fiomeless food service daily. Moreover it will help civic groups like the Boy Scouts who will use the new classrooms. It will benefit the social workers, their clients and the cluldren who use the nursery facility. Contract Compliance: The dexnolition, construction, and improvements are being done at the comer of Smith and West Seventh . This location is the same address as was indicated on the contract. This center primarily serves the neighborhood and Saint Paul, but there aze recipients of services from outside the area. He did not have a break down. Loan Amount: $542,336 � � 132 �. � � �8 The contract was entered into February 1, 1997. Implementation of the project began in April of 1997. The construction of the structure and extemal aspects of the project are projected to be completed by November 1997. The interior work in the new building and the gymnasium aze expected by spring of 1998. � Because a general contractor has been hired for this project, there is no plan for neighborhood participation to be a component of the implementafion of this plan. � � � � � � � � � � � � � 133 � � 96163 Ramada Hotel Starbonnd LLC Saint Panl Hotel Loan Amounr: $350,000 � Description: The project included a total of $3,617,143 in total project cost. Starbound is in the process of: paying the back t�es ( of previous owner), paying the remainder of the purchase price, and major renovation to the hotel. The STAR funds were applied to the renovation of the hotel. This project has been unplemented. The properiy at 1870 Hudson Road was renovated. As a result 30 rooms were reopened, the exterior was refurbished, and the parking lot and landscaping were impmved. Moreover the lobby was renovated to make the inn more inviting. Because of this project there now is a place on the east side of St. Paul which grovides qualiTy accommodations to the business petson as well as the leisure traveIer. This has benefited the businesses of that area. 3M previously used the convention and meeting space of this facility. As the hotel fell into disrepair 3M curtailed its business association with the facility. Cuirently 3M has resumed this business relationship because the renovation has brought the convention center up to an acceptable level of quality. This project serves the Ramada Inn and its employees. Over 50 new employees have been hired as a result of the renovation and the increased business. City residents aze benefited because a business has been placed back on the tax ro11s. 3M and othet neazby business are served witk an improved bank of accommodations and convenrion facilities. Contract Compliance: The improvements occurred to the property Iisted ia the contract at 1$70 I3udson Road. Because of the nature of the business many if not most of the customers of this Ramada are not from Saint Paul. In light of its location neaz an interstate highway and relationship with the international manufacturer 3M the service area is broad and not prone to definition. The renovation began in the winter of 1996 and was completed by spring of 1997. The STAR Budget was utilized for remodeling the east wing of the hotet. � f�Ci� � � � � � � � � � � � � � � � � � � 96.168 University-Midway Neon Sign Project University United Description: ��-�a� Grant Amount: $80,000 The project consists of providing a matching STAR grant-private loan financing package for installarion of approxixnately 30-40 neon signs for businesses on University Avenue resulting in the creation of a more unified signage appeazance. The Project will complement current facade isnprovements and contribute to a safer environment through increased lighting. This project has not been unplemented. C�urently the project manager, Irene Rodriguez, is promoting the project. She is e�cpecting that some of the participants from the Midway Facade Ixnprovement Project will take part in this also. In fact while discussing facade improvements with first phase grantees she informed the businesses that they might want to postpone sign improvements unfil the Neon Sign Project got underway. Ms. Rodriguez indicated that she believes the project will continue to develop as described in the contract. Since nothing has happened the topic ofpopulation served will not be touched on. The contract was signed Febmary 6,1997. The progress schedule is starting off later than described in the contract. Ms. Rodriguez believes it can be completed within the designated completion date ofFebruary 1999. Update as of January 21, 1998: iJDIITED will launch the Neon Sign Project with a week long community artist e�ibit at Wiikins Dodge the week of February 3-8, 1998. Neon signage from local artists and business will be displayed to spur interest. Various community art projects will also be highlighted, to spur community involvement. T-shirts with the City's STAR Program logo will be given to the public from drawings. I7AIITED will request the presence of Mayor Coleman and the STAR Board. The event will be open to the public and a press release will precede the event. It is estimated that approximately 30 grants will be awazded. 135 96.169 West 7th Commercial Revitalization West End Business & Professional Association Description: Grant Amount: $ 50,000 Loan Amount: $150,000 This revitalizarion effort will enhance the appearauce of commereial sites along West Seventh through store front renovations and other physicaI improvements. This project is beginning to be implemented as of September 1997. The focus of the project is a revitalization of commercial sites along West 7th Street. The improvements will be accomplished through store front renovations. Because the West 7th Business Association has imposed maximum limits on loans and grants of $2Q000 and $2,000 respectively, a minimum of eight business can be served by this project. At this point one business has completed the renovation of a store front. The business is Vildng Construction at 244 West 7th Street. Other businesses on West 7th Street have been approved by the business association to receive funding through tlus revitalization effort but none have begun the improvement pmcess. Because of this pmject the West 7th Business Association fias gained exposure and credibility among the businesses in the community. In fact this revitalization project has increased membership in the association. Additionally this project helps the business association raise funds from other sources. According to James Smith, the project manager, it would be premature to comment on the impact that the project has had on the lazger neighborhood because little has been done to this date. First this project serves the businesses on West 7th Street. The businesses which can be assisted do not have to be members of the business association, and in fact some of approved parties aze not. After the funds were awazded to the West 7th Business Associarion a publicity event was held at a West 7th Street restauraut. Roger Amimdson, a project coordinator and IocaI banker, stated that around 60 business ocvners were in attendance. Flyers have atso been distributed door- to-door to local businesses. This has created a core of seriously interested potential participants. This project will ultimately serve the customers and residents of the azea, but at this eazIy stage it is nof possible to say who that will be. Contract Compliance: The azea served by the project is limited to the properties directly on West 7th Street. Smith said that half the funds are intended to go to businesses between Victoria and the Mississippi River. The other half will go to the area of West 7th between Kellogg and Victoria. The STAR contract was signed in January of 1997. Promotion of the project and the fust facade nnprovement began in March 1997. It is expected that the project will be completed by the anticipated and contracted elcpiration date of January 1999. The project bas gotten a slower start than expected because the contract took a few months Ionger to sign, and businesses seem unable 136 �. � � � � �� .� or at least unwilling to match the funds provided from the STAR for the projects. Another major conhibutor to the slower than expected progress has been the fact that the West 7th Business Associarion has not been able to raise ffie funds to hire or at least assign labor to the task of organizing this project. As of early September 1997 no STAR funds had been disbursed. Thus directly the STAR has not been used for any physical improvements to date. In the case of Viking which has completed its unprovements and has been approved for funding the appropriate reimbursement paper work has not been received. � It is e�cpected that all the work necessary for the implementarion of this improvement project will be contracted labor. In the case of Vildng Construction this may not hold because they actually executed the improvements with their staff. � � � � � � � � � � � � Comments: Mr. Smith stated that the paperwork was almost overwhelming. The presentation of the contract to the West 7th Business Association took about six to eight weeks. Mr. Amundson thought that was too long a delay. Beyond complications and delays, both Smith and Amundson concurred that misinformarion was given to them about the STAR and its relationship to their project. This included whether fees would be deducted from their STAR funds. 137 l�' � 96.170 Lyngblomsten-West 7th Senior Housing � � The contract has not been signed, and nothing has been implemented. The project has requested � an additional subsidy from PED. It was being reviewed during the middle part of August 199 7. A hold has been placed on the STAR aspect oFthis project unril the review is completed. Allen Cazlson, the account officer, said that a decision on the subsidy should be issued within the next � couple of weeks. He believes that the decision will be affirmative for at least some subsidy. The contract should be signed within 60 days following a decision to subsidize. � �j � � � l� � � � � � � � � �. � � A. Introduetion Cultural STAR Report a�- } a� � This report examines the C�ltural STAR Program for cycles 1995 and 1996. It considers the program's strengths and weal�esses by looking at the individual projects and programs that � consritute the Cultural STAR Program as well as overall andicators of the program's performance. The report focuses on ttte level of success that the progrun has had when meeting the desired outcomes outlined in the guidelines. The examination discusses circumstances and � strategies which have helped the program to meet its expected outcomes and idenfifies areas for improvement. The report emphasizes the opportunities and threats which aze present to the Cultural STAR Program. It proposes options and recommendarions for enhancing the program � by taking into account the program participants, the e�ectations of the City of Saint Paul and its staff, and most of all the needs of Saint Paul residents, the cultural community and businesses. � ;� � � � Inforxnation for this report was acquired through interviews and reseazch of program files and documents. The interviews were conducted with neighborhood project managers, Deparhnent of Plannuig and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who aze generally the best informed source of information on their particulaz project or program, gave updated information on their accounts and also identified concerns that they have with the Neighborhood STAR Program. This report was prepared by Fran Burns, a graduate student of the Humphrey Institute of the University of Minnesota. It is an independent report. The options and recommendations presented are those identified by the author and are based on his interpretarion of the information gathered thtough the interviews_ B. Objectives of the Program � The folowing objectives are listed in the program guidelines adopted by the City Council: � 1. 2. 3. � 4. S 6. � 7. � � � Provide cultural and economic benefit to Saint Paul Leverage the sales tax dollars with private resources Create and/or retain jobs Enhance and support the cultural dishict as a visitor attraction Develop relarionships between the cultural district and the neighborhoods Stimulate vitality of downtown Support and enhance Civic Center improvement 139 STATUS OF'THE 1995 STATUS OF THE 1996 CULTURAL STAR ACCOUNTS CULTURAL STAR ACCOUNTS Status of Project Acwwrt Disbursements for 1995 Culturei STAR 6 (66.7%) 1 (11.1%) 2 (222%) �fUlly onone �partially Project Completion with Anticipated Period ' for 1995 CulWral STAR 5 (62.5%) 3 (37.5%) Status of Projec[ Account Disbursements for 1996 Cultural STAR 3 (33.3%) 6 (66.7%) �fully o none Project Completion within the Anticipated Time for 1996 Cuitural STAR 4 (57.1%) 1 (14.3%) 2 �Z8.6%� � .yes o no ect95. �Snot�ndu usenocontrac[wasexepll Prqeet Completion wkhin the Contraded Period � far 7995 CulWral STAR 8 (10Q.Q%) ■yes Project Completion within the Contracted Period for 1996 Cultural STAR 6 (55.7%) 1 (14.3°/a) jxt 95.W9 is not fntluaetl befause no mnt2awds e[eW1e0. All yp�¢�[ �pnhaqs are achve Exhibits 2.1 140 �. � �. � � � � � � � � � � � � � � � Improvements Funded Through the Cultural STAR Program Q� �g Interviews with the 18 Cultural STAR project pazticipants indicate that revitalizarion is occurting in the cultural district of downtown Saint Paul in part because of the Cultural STAR Progam. As of October 1997 eight of the projects have been compieted. Four of the projects were cultural orgauizarion facility impmvements; two were streetscape/pazk projects; and two were commercial rehabilitation projects. The C�lt�u�al STAR funds have been allocated with funds going to each development types. The lazgest amount ofmoney goes to cultural organizations. They received over 50% of the funds in both 1995 and 1996. The other two development types received the balance. The allocarions for these types fluctuated between 1995 and 1996 . D. Pr�ress The Cultural STAR projects have up to two yeazs to complete projects while still under contract. The fust Cultural STAR contract for 1995 or 1996 was signed during February 1996. Thus, the first contract will expire in February 1998. When considering the date of contract expiration, the progress of the C�Itural STAR projects is excellent. In fact it is projected that all except one project from cycles 1995 and 1996 will be completed. This projected completion rate is not surprising if one considers that 8 projects have akeady been completed. The completion rates are high because of three critical reasons. First, the cultural organizations generally plan the processes of design and implementation extensively. Second, the Cultural STAR grants are generally small and do not require massive coordination. Third, the Cultural STAR projects have two years to be completed while the Neighborhood Smali Grants contracts are generally for a'one year period. As shown in e�thibits 2.1, the anricipated completion rates according to the rimelines defined in the contract are not neazly as impressive. The two major reasons this has occurred are because the initial groups to apply for Cultural STAR funds underestimated their comple6on schedules, and also because a few of the groups had organizational problems during the first part of the program. Overall the progress of Culttzral STAR projects has been impressive, and it appears to be able to maintain that level of accomplishment. E. Com�liance The majority of the Cultural STAR projects for 1995 and 1996 have remained in compliance with the guidelines of the program and the requirements of their project contract descripfions. All of the completed projects have been executed within the scope of the guidelines. Of the incomplete pmjects, eight aze expected to be in full compliance. The rema;ning two projects are not or at least may not be in full compliance with the guidelines or contract. The reason "may" is used in the last sentence is because one of the projects that would not comply has not been completed to the extent that non-compliance can be assumed. Two of the projects appeaz to have problems complying with the guidelines. The first project with such a situation is the Science Museum of Minnesota. The initial disbursement of $300,000 went to the Saint Paul Foundation to pay off an indebtedness that the museum had incurred to acquire a portion of the land on which the museutn 141 � will be located. Money in the Cultural STAR is expressly designated for capital improvements and not for the acquisition of property. The second such possible non-compliance issue is with the Museum on Wheels (96.552). Cuttently it is uncertain whether North East Neighborhoods Development Corporation, which is administering the project, will have site control over the building that they intend to improve. The building, 1545 Maryland, was sold recently and the new owner had not yet entered info a Iease witfi the tenant, North East Neighborhoods Development Cotporation. Under the C�ltural STAR guidelines it is required that improvements ha�e a five year life. Without a five-year lease, future site control is uncertain and in turn the life of the improvements. Despite these exceptions the majority of the Culhu�al STAR recipients have or aze eacpected to be able to complete projects in compliance with the guidelines and contract description. F. Economic Impacts For many of the projects it is difficult to measure the economic impacts. Ten of the projects do not invotve a direct monetary exchange associated with the consumption of the unpruvement. An example is the lighting in Rice Park. The consumer of this amenity does not pay at the point of consumption. Other projects will involve a monetary transaction, but they have not been completed. An example of trris is the Minnesota Centennial Showboat Renovafion. However there are two projects which have measurable economic activity and aze completed. They ate the Saint Paul Chamber Orchestore and the Saint Paul Friends of the Library Used Book Store. These stores aze new, so they are still building a customer base. This may mean that sales are not at their peak. Currently the average monthty sales for the used book store aze $2,000. It should be rememberecl that although the dollar amount of sales may be relatively low for the book store that the volume of items sold is high because the books sell for an a�erage of $1.25 per copy. In the azea of job creation there have been 3 full-time and 7 part-time jobs that have been made possible in part as a result of the 1995 and 1996 Culhu�al STAR Program. Another indicator of economic impact, properiy tases, is not applicable since the pmjects aze administered by non-profits and aze thus not subject to property ta�ces. Overall, economic activity has increased in the azea lmown as the cultlu�al dis�ict, but that can not be linked to any one factor. Variables such as the type of cultural event, the frequency of events, safety, and accessibility partly detenuine the economic success ofthe azea orproject. Because ofthe lack ofnecessary variable data it is impossible to specifically ascertain the impact of the Cultural STAR. With this said it is still possible to determine that the Cultural STAR is accomplishing meaningful improvements in the cultural district that would not have othenvise been implemented. This was made clear through the interviews with the Cultural STAR project managers who said this program has been vital to complementing the new civic center facility. G. Matches The Culrival STAR Program has been successful in securing the required match from each of the participating projects. As seen in e�ibit 2.2, the entire documented match for CulYurat STAR 142 �. � � i � � � � � � � � � � � � Exhibit 2.2 � Exhibit 2.3 � � � �$ �, Matching and STAR Funding � for 1995 and 1896 Culturet STAR (46.4%) 143 Project Managers' View of the Cultural STAR for 1995 Cultural S7AR Recipients Project Managers' View of the Cultural STAR for 1996 Cultural STAR Recipients Exhibits 2.4 .: � � �� - � a� cycles 1995 and 1996 has been 53.6% of the total dollar expenditures necessary for the projects. This means that for every dollaz of Cultural STAR money being provided to projects, $1.15 in outside match is being raised. In fact this reading of documented match is highly conservative as the current reporting system does not consider the magnitude of the total match that will be provided in the case of the new Science Museum of Miwnesota or the Minnesota Museum of Art. These two projects could put the match over $90 million. Sweat equiTy did not play a significant role as match to these projects. Because of the highly organized and public nature of the improvements in the Cultural STAR, sweat equity match was not appropriate as it was in the Neighborhood STAR Prograui. H. Perception of the Cultural STAR Program The project managers of the Cultural STAR Program expressed an overwhelmingly positive view � about the Cultural STAR. As noted in exlubits 2.3, over three-quarters of the 1995 Cultural STAR project managers had a positive view of the program while two-thirds were positive in 1996. One additional manager was not fully satisfied with the Cultural STAR Program in 1996 � than in 1995, but due to the small number of participants it would be difficult to identify this as a trend: � � � � � � � � � � Cultural STAR project manager of the History Center Exterior Signage, Shana Crosson, said that, "The Minnesota Historical Society was thrilled to receive this grant. They would apply again." Another Cultural project manager from Minuesota Landmazks Cultural Corridor Streetscape Plan, Amy Walgrave, said that, "It was nice being part of a progrun with a short response time. The STAR staff has been great." She also said that, "It (the Cultural STAR) enabled them to do things that they would not otherwise be able to do." Beyond the project manager's positive attitude towards the Culh�ral STAR Program, they also shared an attitude that it is important for the City of Saint Paul to take a real and active role in sustaining the cultutal and artistic life of the community. The C�ltutai STAR project managers see the program as an important step for the City of Saint Paul to demonstrate its support for the culturai community, and that it must maintain and "grow" this commitment. I. Issues Raised by the Cultural Proiect Mana$ers There were no central issues or concerns that repeatedly came to light during the interoiews with the Cultural STAR fund recipients. This is not to say that there were no issues, but there were no pattems of concerns that emerged. The concerns were diverse and particulu to the workings of the individual Cultural STAR proj ects. One issue that was mentioned more than once was that PED charged Cultural fund recipients a fee for the deparlments's admnustration of the award . However this pracfice no longer e�sts and consequently is not a persisting issue. Another concem mentioned by two project managers was the extensive amount of paperwork that the Cultiu�al STAR required. The reason that this concem was cited stenuued from the Little Davis-Bacon reporting requirements. This regulation pertains to the use of all city funds. For the two project managers that expressed this concern, one of the projects had not yet started, so the project manager was expecting that it 145 � would be an issue. Other concems that were cited were 1)difficulty getting the City to issue a pemut for a project, 2) not allowing STAR funds for mazketing, and 3) not allowing reimbursements for administrative eapenses. Overall the concerns cited by each project manager were specific to their circumstances and did not highlight any major deficiency with the Cultural STAR Program. J. Overall Program Issues and Recommeadations The issues and recommendations presented aze those identified by the author and are based only on his interpretation of the information gathered through the interviews. 1. Short-Term Issues a How can the Cnitural STAR Program encourage use of the loan funds? 25% of the funds from the Cultural STAR are to be loaned out. The prograw has identified a need to fund projects that support the cultural district such as restaurants and pulang ramps. As the diversity of the STAR applicants and recipients increases, tlus affords the prograzu new opporhxnities to allocate loans. How could that be accomplished? b. How can the Cultural STAR be more snpportive of multi-cnitural projects? The progam has identified multi-cultural pmjects as being critically important to fostering the revitalization of Saint Paul. Many of the newly arrived immigrant groups to Saint Paui have a tendency to settle in close proximity to others of the same ethnic background. The geographic distributaion of the many cultures of Saint Paul may be a key ingredient to more effectively supporting multi-cultural projects. What can be done to create an environment which will nurture multi-cultural projects? 2. Longer-Term Issnes a. How can the Cultural STAR bolster the arts and culture thronghout Saint Paul? Cultural activity does not onIy happen downtown. The neighborhoods have their own cultural venues, events, and opportunities. How can the program effectively blend its support for the "higher" cultural acrivities of downtown with the more "populaz" cultural opportwriries offered in the neighborhoods? b. How can the Cultural STAR awaken interest in history, the arts, and cultare among Saint Paul's youth? They aze the future stewards of the community. This generation wiff be facing the same decision that the past few generations have-Do I stay in the inner city or do I exit? It is unportant that the Cultural STAR take a leading and yet supportive mle to instill pride in the children about who they aze and about the community in which they live. How can the Cultural STAR Pmgram best serve our futiu adult residents-the children? f�'. �. � � 3. �.i � � � � � IJ � ,� � � � � � Recommendations �� a. In order to use the targeted 25% of Cultural STAR funds as loans the program could require that supporting services like pazldng ramps and restaurants that receive STAR funding withiu the cultural district get a certain portion of the awazd in the form of a loan. This could help to get loan funds out by targeting recipients who would be the most capable of repaying the debt and are also in the area with the highest concentration of cultural opportunities. b. As stated in the 1996 guidelines in the list of "projects more likely to be funded" aze "proposals supporting the multi-cultural dimensions of the community". This presents a cross purpose to the program because the cultural funds are mostly directed toward down town whereas most of the ethnic communiries in Saint Paul aze located out of the cultural comdor. In a effort to support this proposal it might be beneficial to open an inereasing percentage of the money to use in the neighborhoods. With more money available to the neighborhoods, multi-cultural projects may have a better chance at getting Cultural STAR funding. a Many of the culhxral organizations in Saint Paul are hauing trouble with insufficient funding. The usual sources like the National Endowment for the Arts are often times lowering the amount they aze giving in grants, awazds, and donations. As a result the Minnesota State Legislature has amended the Cultural STAR Program to ailow it to fund operating expenses as well as capital expenses for cultural projects . Currently the challenge will be to detennine how the funds will be allocated in light of this expansion of allowable expenses. d. Cu2ttue comes in many farms and that is especialIy true in Saint Paul, and it does not only happen in the cultural corridor. For five years from the inception of the program the cultural corridor has been designated to receive a minimum of 75% of the STAR Program's cultural funding. This has been one of many effective strategies for revitalizing downtown Saint Paul. However after five years this allocarion will be revisited. At that point the City Council will consider if the geographically designated allocations will be continued or revised in some way. The Council should consider modifying the minimum aliocation for the cultural corridor so that cultural groups in the neighborhoods can compete for funding more successfully with the well established cultural organizarions in the comdor. e. The Cultural STAR Program can help muture a sense of cultural, historic, and overall civic pride among Saint Paul by funding cultural endeavors that promote an understanding and awazeness of the history and culture of Saint Paul. The 7ackson Street Roundhouse has developed a grade specific curriculum for children visiting the facility. This approach helps broaden and reinforce children's understanding of the unportance of Saint Paul as a transportarion hub and economic center. When awazding Culhxral STAR funds the board and 147 � City Council should ensure that this Saint Paul focus is demonstrably part of each of the projects that will get Culriu�al STAR funding. K Conclusion In summary, the C�Itural STAR Program has been effective in meeting the objectives as stated the prograui guidelines. The majority of the funds have been used for capital nnprovements to "front of stage services" wfiich impact visitors. The Cultural STAR funds are stimulating downtown vitality in combination with other private and public efForts. T'he cultural corridor projects have generally been successful linldng into Saint Paul neighborhoods. This is especially witnessed through the outreach that many of the cultural organizations have with the Saint Paul School District. Although it is difficult to verify absolutely, it seems that the Cultural STAR Progratn is making efforts to stimulate economic activity and create /retain jobs. It appears that with fixtute cycles it will be even more successful in creating economic vitality by funding projects which cater to the needs of the visitors, such as restaurants. The program is new, but it has great opportunities for meeting its goals in Saint Paul because the cultural wmmunity is dynamic and willing to meet the needs of Saint Paul residents. ,; � Y � � � � � � � � � � � � � � � ��-ca� 1995 & 1996 Cultural STAR 95.509 Skyway Lightutg Bnilding Owners & Managers Association Description: Grant Amount: $136,600 The objective of this project has been to add lights to all of the skyway bridges in downtown St. Paul. Decorative light fixtures will be located along the top of both sides of each skyway bridge, specifically at the intersecrion of the vertical supports and the top horizontal beam. These aze permanent lights to be lit every night. This project has not been implemented as of September 1997. William Buth, President of the Building Owners and Managers Association and project manager of the Skyway Lighting project, is negotiating with Saint Paul's Department of License, Inspections, and Environmental Protections on the design of the light fixtures. Mr. Buth said that he believes that agreement has been made on the design, but the cost will be more than originally eapected. In order to continue, the Association will haue to commit more money to the project. Mr. Buth believes that commitment will be made before the end of the yeaz. Mr. Buth did not comment on when he thought the project would be completed, but he did say the permitting process and the increased cost of the project have slowed down progress toward implementation. The objective of the project is to add life to downtown Saint Paul. It will do this by visually connecting the cultural institutions-and other building in Saint Paul with aesthetically attracrive exterior lighting on the skyways. 149 � � 95.510 Library Facade Lighting James J. Hill Reverence Library Grant Amount: $ 15,000 � Description; The objective of this project was to install light fixtures to illuminate the facade of the St. Paul Public Library and the James 7. Hill Reference Library buildings and to increase the general light level in the azea. This project has been implemented. Ten light fuctures have been installed on the front lawn of the Saint Paul Public Library and the James J. Hill Reference Library. Because of the lighting project the library can be seen more easily at night. The Italian Renaissance building assumes a more prominent posirion downtown. According to Brian Braden, the project manager, the accent lighting makes the buildings more prominent in the evening and has ixnproved the general feeling of safety in the azea The Saint Paul Police Department could not verify that Rice Pazk had experienced a change in the number of crimes coxnxnitted in its boundaries since the lighting pmject. This is the case because they keep records on lazger ttacts than the park occupies. The served popularion consists of visitors and residents that go to the downtown area azound the u�aiu library. It benefits the patrons and visitors of the Minnesota Club, the Saint Pau1 Civic Center, the Ordway, the Landmark CenYer, and the Saint Paul Hotel. Contract Compliance: The popularity and cultural significance of this area ensutes that the project services a wider audience than Saint Paul. Visitors come from all sections of Minnesota as well as the rest of the five state region. The STAR contract was signed on Mazch 1, 1996. The installation of lights began in May of 1996 and ended June of 1996. The STAR funds were used for the purchase and installation of the lights. � 150 a�-�a� 95.511 Rice Park Improvements James J. Hill Reference Library Description: Grant Amount: $37,500 The objective of the project was to increase the lighting levels in Rice Pazk by installing permanent light fixlures in the trees. Receptacles were installed high in the branches of the trees to accommodate the Capital City Lights program. The eacisting temporary cabling system was removed and permanent conduit was installed in the ground and up the tree tnmks. In order to complete the project, the electrical infrastructure in the park was also updated. The population served includes individuals who attend events in Rice Pazk, pass through Rice Pazk while patrouiznig or attending an event at a local orgaz�ization, ar visitors and residents on their way to the downtown district. Contract Compliance: The popularity and cultural significance of this area ensures that the project services a wider audience than Saint Paul. Visitors come from a11 seclions of Minnesota as well as the rest of the five state region. The STAR contract was entered into May 1, 1996. The improvements began in July of 1996 and ended September of 1996. The STAR funds were used in Rice Pazk to upgrade the electricity, wire the trees, and install light fixtures. Volunteerlaborwas used on a portion of this project to place 50 extension cords in the trees of the park. 151 95.516 Minnesota Clnb Hattdicapped Entrance The Minnesota Clnb Description: GrantAmount: $10,000 Loan Amonnt: $39,000 The obj ective of this project was to modify the existing Waskungton Street enirance by removing the stairs and installing a handicapped lift in the foyer. This project has been implemented. A handicapped accessible entrance has been installed at the southem end of the Minnesota Club located at 317 Washington Street. In order to install the entrance the landing was lowered to the levei of the outside sidewalk. Previously , a wide staircase ran up to the fust landing at this entrance. As a result of this proj ect this staircase was divided and an elevator lift was installed. When entering the building from the handicapped entrance there aze two automaTic doors at each end of the lift, upper and lower. The eaterior door is equipped with a camera in order to confirni the identity of the visitor. Entry through the outside door is activated by somebody at the front desk. There are complementary handicapped features inside of the club, The upper levels are served by an elevator. The ladies' bathroom is designed for handicapped access and the men's is currently being retrofitted Because ofthis project the Minnesota Club is able to serve the community more fiilly. The enhanced access to the building works as an asset to the club. On a broader scale this project benefits the lazger community because it offers visitors and patrons to the cultural corridor a gathering and meeting facility that is easily accessible despite the physical conditions of the individuals Increased use of the facility because of the improved handicapped access has not been moaitored. Additionally there is no record of the number of times the lift is used because there is no automatic counting mechanism on the lift. Bill Redding, the project manager, indicated that the lift is used. Its use is lunited to designated handicapped individuats. The lifi is never used for freight. The lack of monitoring does not meet the requirements outlined in the evaluation section of the application. Contract Compliance: The events held at the club aze diverse as aze the visitors. They are not from any one particulaz place. Most of the patrons are from Minnesota The contract was entered into May 1,1996. Construction began Match 1996 and was completed in October 1996. According to Mr. Redding the pmject took longer than the described six months because the wheel chair lift took longer to order than e�cpected. The overall maximum deadline for the project was May l, 1998. Everything was completed well before that point. The STAR funds were exclusively and totally used on the creation of the handicapped access for the building. The total cost of the project was in excess of $100,000. 152 1� , � Mr. Redding said the STAR money was critical in getting the project accomplished promptly. He also said that getting the funds was difficult. The club had to show that its facilities were open to the pubiic. The City Council wanted this assurance because public money was going to fund the project. The project was not advertised on the building as being part of the STAR Program. However the members did know because it was menfioned in the club newsletter. Mr. Redding quipped that the process set forth in guidelines is straight forward. You just have to make sure you fit before you apply. 153 � 95.518 Minnesota Museum of American Art Expansion and Renovation Minnesota Museum of American Art Description: � GrantAmount: $100,000 � The objective of this project is to renovate approximately 15,000 squaze feet on the 2nd and Sth floors of Landmazk Center for the Museum's education deparhnent, new administrarive offices and gallery expansion. Impmvements will also include new lighting, HVAC, painting, carpeting, walls, and security system. A new Museum visitor informarion/education center will be built. Although implementation of the project was revised from the original anticipated schedule, Doug Nathan, the Museum's development director, said that the project will include all improvements described in the contract. The second floor will be renovated to house more gallery space, and the fifth floor will be transformed to accommodate the museum's administrative offices and education deparlment. As a result of this project the galleries will eacpand by 30% and a new information and visitor center will be added. Nathan indicated that the amount of space that will be renovated for the administrative offices on the fifth floor is not accurate in the contract. He said it is 1,500 square feet and not 15,000 square feet. After selling the Jemne Building the museum had to place their permanent collection in storage. With the additional space the museum will not have to completely close its operation in order to remove and replace an eachibit. This in turn will directly benefit the patrons. The space will be more open and user friendly. This cultivai site serves azound 75,000 people per year. Of this number 8,000 are chiIdren from the Saint Paul School District. The School Board and the Minnesota Museum of American Art have worked together to create a cultural curriculum that the museum can complement with its collection. According to Darcy Berus, associate director of development for the museum, the Minnesota Museum of American Art is the only art museum in Saint Paul. Because of this status the museum has a strong position serving the City of Saint Paul. Contract Compliance: The STAR contract was entered into May 1996. It is eacpected that implementation of the project will begin October 1997 and end in February 1998. Under these expectations the project will be completed before the contract eapires but after the anricipated date of complerion which was December 1997. To date, none ofthe STAR funds have been disbursed. Nathan explained that the project has been slowed down because of the size of the renovation project. He said total renovafion will cost around $600,000. One significant barrier to the implementation of the pmject has been that ffie original cost estimates were low. This pmblem has been compounded by the fact that additional needs that were 154 � � � � � �J � � � � � � � � ll � � �� a�- �a� not identified initially aze now being considered. Nathan said they aze hying to do it (the project) right, not fast. After reevaluating the increasing costs and limited budget, the museum considered cutting the heating, ventilation, and air conditioning (HVAC) improvements, but later realized this was not a reasonable modification because it would curtail the musewns capacity to attract certain art e�ibits. Many arts organizations which manage exhibits demand that their collecrions be displayed under certain air quality conditions. The building gets excessively dry during the winter. This would violate the conditions set forth by some e�chibit curators. The museum's boazd recognized this as being an unacceptable solurion, so they have determined that the project will be implemented as originally described. Comments: Nathan said the museum was satisfied with the STAR. It was the lead gift from the City. He viewed it as endorsement of the museum's work. Nathan expressed a recogsition of the helpfiilness of the STAR coordinators. He indicated that the museum appreciated the fact that the City bought the Jemne Building from them with the help of STAR funds. He would apply for STAR fixnds again. Nathan described the environment for fund raising as "hazd". It is important far the City to move in and help. City support has always been important, but especially because the demand for cultural services and experiences has been increasing. Nathan sees a role for the STAR program in lending vision for the future of the Cultural Corridor. Currently there is no master plan. He believes that the City is paying lip service to the Arts. IYs a low priority. The City could help thmugh specific things like signage and more general services like assisting the arts organizations in the creation of a long term plan. Nathan thought that a posirive modification to the STAR would be the allowance for eacpenditures for mazketing to be reimbursable. He did not generally think that any STAR funds shouid go toward the day to day administration of projects. 155 � � 95.523 Ordway Patron Service Improvement Ordway Mnsic Theatre GrantAmount: $15,250 � Description: The objective of this project was to install video monitors and an ADA handicapped accessible door to improve service to the patrons. TYris project has been implemented. Ten video monitors have been installed in the lobby and stage area of the Ordway Theater at 345 Washington Sireet. Additionally a handicapped accessible door was added to the main entrance. Because of these service improvements the Ordway is able to provide a more professional and attractive environment for its clients and performers. Mazsha Milgrom, the pmject manager, said it benefits the bottom line. The Otdway is now a more desirable and responsive performiug center than it had been. The video monitors which are commo�lace equipment in halls like this are used as cuing and leatning tools for the perfomiing artist. Previously tlus necessary equipment had to be rented or �-ansported with the performers, Tlus is no longer necessary. Another benefit offered by the monitors is that the performances can be viewed live and remotely from the lobby. With this addition late-comers can watch the show without disturbing the other patrons. Finally when a show is not being transmitted over the monitor, it can be used to advertise future presentations. The haudicapped accessible doorway allows the titeater to more safely and efficiently service patrons who have special physical limitations. It is a key component and complement to the other bandicapped accessible amenities in the theater. The patron service improvements potentially have the ability to enhance every patrons visit to the Ordway Theater. In particulaz it benefits late-comers, handicapped individuals, and the performers, but the opportunity to improve these parties eaperiences in the theater in tum enhances the eacgerience of all the patrons. The attendance of the theater is 30Q,00� visits annually. Contract Compliance: As a result of the prestigious reputation of the theater and its schedule, guests originate from not only the metropolitan azea of Saint Paul and Minneapolis but from all parts of the Upper Midwest. Ms. Milgrom stated that 2/3 of the patrons are from the Twin Cites region and that students in the Saint Paul School System make up a significant core of their patronage. The contract was signed in May 1996. The project started in May of 1996 and ended by October 1996. It was completed withiu the desigiated period, and the STAR did not unpact the rate of its completion. The STAR funds were used to purchase and install the monitors and the handicapped accessible door. The outcome of the project agrees with the description in the coatract. All of the labor was completed through the maintenance staff of the Ordway or contracted labor. u 156 � 1 f � �g - i ag Comments: Ms. Milgrom was surprised that a fee was charged against the cuitural grant prior to the disbursement of the funds. She was not aware of this, and this created some short-term gaps in the financing of this project. She also thought that the requirements of the cultural STAR might discourage smaller atts organizations however she was not personally familiaz with any such cases. Ms. Milgrom believes that there could be less paperwork, and some of the STAR funds should be usable for administrative purposes. She thought 10-15% for administration would be appropriate. � Editor's Note: The City's service fee is no longer taken out of each organizarion's loan or grant awazd. � � � � � Handicapped accessible door at the Ordway � � � � �� 157 � � 95.528 Arts Resource Center Expansion Resources and Counseling for the Arts Grant Amount: $25,000 � Description: The objective of this project was to create an art resource center in Lowertown. This project has been implemented. Space at the Northem Warehouse, 308 Prince Street, Suite 270, in Lowertown was modified to accommodate administrative, meeting, counseling, and library services for the non-profit by the name of Resources and Counseling for the Arts (RCA). As a result of this project the square footage available to RCA has increased four-fold from their previous site in the Landmazk Center. This has enabled RCA to expand its services and more conveniently assist the arts community of Lowertown. The total cost of the renovarion project was $150,000 of which $25,000 came from the Cultural STAR program. Because of this project RCA has been able to increase the number of programs that it offers. It has augmented its telecommunication linkages in the new location with more telephone lines and computers with intemet access. Increased and enhanced features of the new site ha�e enabled RCA to serve 25% more artists in 1997 than it had served at this time last yeaz. This project benefits the neighborhood as RCA acts as a complement to other support services to the arts community in Lowertown. In fact since RCA relocated to Lowertown the Minnesota State Arts Board and the Jerome Foundations have opened offices in the immediate area. Clustering of Arts orgazdzations have benefited the community according to Joan Well, the executive director of RCA. Contract Compliance: RCA served 3,000 individuals from 1995 to 1996, and this increased to 4,000 from 1996 to 1997. 80% of the artists served were from the seven coimty metropolitan azea 7% are from greater Minnesota and most of the remainder are from Wisconsin and the Dakotas. RCA also provided resources and counseling to 260 arts organizations from 1996 to 1997. Ms. Wells said that RCA offers specialized services to its clients. Those services include information and technical advisetnent and general information on business management. They do not directly manage or represent clients, but they do connect artists and organizations to available resoutces. RCA additionally facilitated arts resource seminars that reached 3000 participants and separately directed 1500 artists towazd job opportuniries. The STAR contract was signed Febmary 23, 1996. The improvements for the project began in January of 1996 and were completed by April of 1996. Ms. Wells did not identify any barriers to the completion of the project, but she said the removal of lead paint altered the schedule to some degree. The STAR did not unpact the rate of completion after the improvements were started. The STAR funds were used Yo coavert a section of the wazehonse to usable office space. In particular it was used for electric, plumbing, lighting, wall, and general prepazation of the space. Comments: Ms. Wells indicated that the relationship between the Cultural STAR program and RCA ran smoothly. She stated that RCA had gotten funding from PED on prior occasions and that perhaps this positive history of interaction between the two parties made it easier. � 158 � � � 95.530 Saint Paui Chamber Orchestore The Saint Paul Chamber Orchesira Society,Inc. q� - �a� Grant Amount: $71,150 � Description: � � � � � � The objective ofthis project was to establish a street-level retail store in the Hamm Building that acts as a outlet for Saint Paul Chamber Orchestra Society Inc.'s merchandise and concert tickets This pzoject has almost been completed. A street level storefront has been established for the mazketing of Saint Paul Chamber Orchestra tickets and merchandise. It is located at 402 St. Peter Street, in the Hauuu Building. The unprovement of the space involved facade restoration, added walls, a new ceiling, lighting, and electrical improvements . The store has a ten yeaz lease on the space. Because of this project good press has been generated for the Saint Paul Chamber Orchestra. It has also given the organization an oppornurity to mazket its product to the public. The public is being served more fixlly with the addifion of the Orchestore because it is conveniently located in the center of Saint Paul, and its hours not only include weekdays but Saturdays also. According to Terry Schlender, the project manager, the store wili employee one full-time employee and six part-rime employees. As of September 1997 the store employed one full-time and two part-time employees, but with the advent of the concert season this is expected to increase. The Orchestore has had a slow business start because it opened at the end of the 1996-1997 concert � season and because the Hauun Building has not been easily accessible because of exterior renovations to the structure. As a result it is difficult to deternune who and how many this store will service. Mr. Schlender said most of the customers are first time subscribers, tourists, or downtown � workers. He had no idea of how many were served. He said it varies widely, but that the daily customer count is usually between 10 and 50. � � � � � � Because the Orchestore sells unique merchandise and because Saint Paui Chamber Orchestra merchandise is no longer sold at the concerts, the store's geographic area of service is lazge. The store not only serves downtown Saint Paul but the entire metropolitan azea according to Schlender. Contract Compliance: The STAR contract was signed in May 1996. The restoration of the 402 St. Peter site started in November 1996. The store opened April 1997. The ticketing system was in the store and operational in August of 1997. The exterior of this space should be fuushed before the end of the 1997. The STAR process of disbursing funds did not slow down the progress of the project. The STAR funds were matched by the improvements that the FIamm Building owners made to the Orchestore space. The improvements were in excess of $100,000. The STAR funds paid for shelving, computers, a central tickering system, and Orchestore linkages to the system. 159 � � The work on the site has been completed by contracted labor. Sweat equity was not performed for � the implementation of the project. � 160 � , � � � � � � �� 1 ! 1 1 � � � � � � 95.534 Cambodian Community Center Mnral Project United Cambodian Association of Minnesota Description: ��-ia� Grant Amonnt: $13,200 Loan Amonnt: $4,400 The objectives of this project have been to create several painted and one sculpted art mural for the exterior ofthe building, and also add flagpoles to the Cambodian Community Center, located at 529 Jackson. This project has been partially implemented. The first portion of the project has been completed. , It was the installation of flags along the front facade of the Cambodian Community Center at 529 7ackson. There aze eleven flags in totai, and they include the flags of the United States, Cambodia, the United Nations, and Mimiesota, as well as four signal flags and others honoring Southeast Asian � culture. The second phase of the project is also largely completed. A lighted mural celebraring Cambodian culture has been placed on the exterior of the building's first floor southern exposure. It is being crafted by a community artist. In addition, tlu painted murals have been completed and � are displayed on the east and south sides of the building. These murals were also completed by a community artist who's work is being funded through a grant from the Saint Paul Companies. Through this project the northeast comer of downtown will ha�e a new presence which reminds all residents, center members, and passers-by about the distinctive architecture and culture of Cambodia. It will reinforce and exemplify the Downtown Development CounciPs Plan to bring more cultural diversity to the downtown section of Saint Paul. Unlike its companion project in the Neighborhood STAR Program, this Cultural STAR Project will serve a broader audience. This building is located at the northeast gateway to downtown. It is visible from East Seventh Street as well as a downtown interchange from Interstate 94. Contract Compliance: The improvements will be on the building at 529 Jackson as set forth in the STAR contract. Geographically, this part of the project will serve a wide array of people from different places inside and outside of Saint Paul. The STAR contract was entered into April 1, 1996. The installation of the flags began in March of 1997 and ended in June of 1997. The remainder of the project was completed in November 1997, with some details to be finished by UCAM in the spring of 1998. The STAR funds have been used to buy the flags and install flagpoles. It has also been used to install the murals for the exterior of the building. 161 � 96.542 Science Museum of Minnesota Espansion Grant Amount: $300,000 � The City of Saint Paul Descripfion: The objective of this proj ect has been to create a 310,000 square foot Science Museum of Muuiesota complex with a 700 car pazlang garage. This project is being implemented currently. It will create a 31Q000 square foot riverfront e�ibit site for the Science Museum of Minnesota. The properry being developed is on Kellogg between Eagle Street and the District Heating Building. It does not have an official address as of yet. The new $95 million ea�pansion project is e�ected to bring 1.5 million people to the cultural district annually. It will serve a broad base of people from Minnesota and throughout the Upper Midwest. Because the funds for this project will be used by the City to pay for portions of the project, no contract was executed. Gmund brealdng for the pmject began in late spring 1997. According to Bob Geurs, ffie City's STAR account officer, the project is expected to be completed by the end of 1999. STAR funds for ttris project ha�e been disbursed. The $300,000 that was awarded went to help pay off an obligation with Saint Paul Foundation. Those funds were used to acquire a portion of the land on which the museum will be situated. � 162 � � 96.545 Friends of the Library's Used Book Store Friends of the Saint Paul Pnblic Library i� • .� Grant Amount: $25,000 � Description: � The objective of this project was to create a used book store that will sell old and excess copies of books from the Saint Paui Public Library System. � This project has been implemented. A space on the skyway level of the north side of the Norwest Bank Building has been adapted in order to house a used book store. It was through a cooperative arrangement developed by the City Purchasing Agent, Linda Camp, that this book store came to � light. The City had explored a number of different options to sell surplus supplies. After obseiviug the success that 20 other United States cities had eaperienced with surplus sales, Saint Paul decided � to explore this option. At this point a marriage between numerous if not all City departments was forged. The Saint Paul Library and the Friends of the Library took a proactive role to directly participate in the future outlet. It identified this retail concept as a more efficient and profitable � method to market its used books. The final development of this plan not only involved retail services but the addition of a library kiosk where patrons check out books. With this outlet the Friend's can more efficiently raise money for the library. This arrangement eliminates the need for librarians to tend to the sale of books because all books aze marketed at the designated ouUet. Moreover the sales aze more profitable because labor costs aze not as high as they would be if the sales were conducted in the library. Another benefit of this project is that it allows for the specialization of the units function. At this site the staff is dedicated to the sale of books and other surplus items which makes service more efficient than it would be if the sales were conducted at the library. The public has exceptional access to the used book store because of its popular location near the Norwest food court, and also its central location in the skyway system. Finally, the book store serves the lazger community by offering the public a wide variety of books at a reasonable prices. The used book store has one fall-time and one part-time emptoyee. The majority of the used book store patrons either work downtown or live downtown. The store serves between 120 and 140 customers per day. Contract Compliance: Craig Thompson, the store manager, indicated that the store serves a five block radius. Its service area would cover the majority of downtown Saint Paul. This service area overlays the Cultural Corridor. The contract was entered into July 1996. The improvement to the skyway space was begun in July 1996 and was completed in Mazch 1997. It was completed within the anticipated progress schedule. The STAR funds were used to install walls, signage, elechical rewiring, and lighting. Ali the funds haue been disbursed. 163 `J Comments: Peter Peazson, the project manager, said the grant writing for the STAR request was � simple. However the request for reimbursements was difficult. He suggested that money be advanced to the pmject rather than always hauing to request reimbursements. He thought that may ' organizations would not haue the money to put up front and wait for a reimbursement. He did not cite any organizations that he thought might have problems. Overall Mr. Pearson said it was not a , bad process. He would apply again with hesitation, but he did say there were easier sources available. He indicated that administrarive resources were a problem, and he thought it would be appropriate to charge up to 10% of project costs to that category. Mr. Pearson appreciated that the � partnership that was forged among the Saint Paul Library, the City of Saint Paul and the Friends of the Librazy was supported by the STAR pmgram. Finally Mr. Pearson said the interviewing pmcess was intimidating, and it might be easier if fewer of the boazd members were in attendance for each � of the individual interviews. He was also disappointed that delays in the interview process caused him to spend much of that day waiting to be interviewed. Brad, a store associate, said he likes working at the Saint Paul store. He said there aze good bargains. � "In fact I have bought so many books (from the store) I no longer have room for any more." LJ Friends of the Library's Used Book Store 164 �-�a� 96.546 Hillcrest Recreation Center Theater/Communication Room Highland Area Recreation Project Description: Grant Amount: $50,000 The objective of this proj ect is the creation of a state of the art theater for community use. The hope of the applicant is to instali a lighting and control system, a sound system and a complete projection system. With these items in place Highlands expects to be able to attract professional organizations to use the facility thus exposing local residents to professional performances. This project has not been implemented. As of eazly September 1997 the project was sfill getting bids. Gayle Summers, the project manager, indicated that she e�cpects the Highland Community Center Auditorium upgrade to be accomplished as set forth in the contract. The nnprovement will include the installarion of additional lighting, a control system, a sound system, and a complete projection system. The only possible change from the coniract's project descripfion will be reflected in the quality of the system. The contract indicated that the auditorium would be transformed into a state-of-the-art theater. In light of rising costs this might not be possible. Contract Compliance: Implementation of the improvements aze expected to begin in eazly October 1997 and end by the close of late 1997. Although the project is expected to be completed before the contract will expire, it will not be finished according to the projected progress schedule of spring 1997. Ms. Summers said that the primary delay to accomplishing this project has been getting a reasonable bid on the work. Although the contractor for this project has not been identified with absolute certainty, she is confident that this project can be implemented during this autumn. Ms. Smnmers is optimistic about the outlook because she has begun to receive bids that fall within the project budget. Comments: The Cultural STAR has worked well for the Highland Community Center. Ms. Summers appreciated the fact that she was able to present the theater project directly to the board. She said the process was not too sophisticated, and she thought that was good for participants. Ms. Sununers said that although this project was not in the Cultural Corridor it was rated highly because the center's improvement will serve the cultural needs of the community. 165 96.549 History Center Egterior Signage Grant Amonnt: $27,900 Minnesota Historical Society Description: The objective of this project will be to provide funding for the design and installation of exterior identificarion signage for the Minnesota History Center. A lazge identification monolith will be installed at the comer of Kellogg and John Ireland Boulevazd. Flagpoles and other hazdware displaying identifying banners will also be installed. This project has not been implemented. Shana Crosson, contact at the History Center for this project, said that as of late suwmer 1997 bids were being taken on the signage project. She indicated that the large idenrification monolith described in the contract will be installed on the corner of Kellogg and 7ohn Ireland Boulevazds. However the flagpoles also mentioned in the contract haue had to be redesigned because of weather conditions. The objective of this signage project is to increase the Minnesota History Center's presence in the Capitol Complex area. This in turn is eapected to increase the attendance. As a result of ttris the Minnesota Historical Society will be able to more fully accomplish its mission of educating the public about Minnesota and the region's past. The expected benefit accruing to the public because of this project will be a broader awazeness of this cultural and educational resource in Saint Paul. During the 1995-1996 school year the History Center served 75,000 school children. A large portion of whom are from Saint Paul. Hundreds of thousands more including families, visitors, and tourists from all age groups were served during the same period. It is expected that more will visit once the structure is identified as a museum. Contract Compliance: The geographic service azea for the museum is broad. The best served azea is Saint Paul and its environs however during the tourist season pa�ons visit from all points in the country. The STAR contract for this project was sign in November of 1996. Construction and completion of the pmject are expected before the end of autumn 1997. Crosson said that the STAR program did not delay the project. She said delays are attributable to staff turn over and reassignment of involved individuals' duties. Comments: Ms. Crosson said the Minnesota Historical Society was thrilled to receive this grant. However she did indicate that the pmcess and the procedute of the STAR program were uncleaz. Nevertheless they would apply for STAR funds again. 166 q�� a� 96.550 Cultural Corridor Streetscape Plan Minnesota Landmarks Description: Grant Amount: $35,000 The objectives of this project aze to install nine new historic lampposts, along with sixteen new trees on the sidewalk azeas of the building. The project is part of a larger effort by the businesses in the Ctiiltural District to enhance the areas neaz Mazket, St. Peter, Cedaz Streets and Kellogg Boulevazd. The proposed improvements would benefit the pedestrian environment by increasing safety, encouraging pedestrian traffic, visually enhancing the Culhiral District, and strengthening the historic chazacter of the downtown azea. This project has not been fully implemented. The decorative and historic lampposts azound the Landmazk Center will be augmented by nine new posts. The original number of trees in the plan has been decreased from 16 to 10 in order to complement the center and not clutter it. i Amy Walgrave, the project manager, indicated that the plan was partially implemented in October � 1997. They had expected that the project would be completed by summer, but the Public Works � DepartmenYs busy schedule prevented eazlier implementation. The project is expected to be fully completed by March 1998. � The STAR funds are being used for the trees and lights. Because of the prior lighting proj ect at the Landmark Center, it is unnecessary to add electrical capacity to the surrounding streets. All of the labor will be provided through the contractor for this project. No sweat equity will be used for the match or the actual impiementation of the project. Camments: The STAR process went smoothly. It was nice to be part of a program with a short response time. Ms. Walgrave also said the STAR staffhad been great. She said there was a fee that was charged against their STAR grant of which they were not awaze. It created some difficulty because it was not considered in the plans. She indicated that she is aware that it is no longer charged Ms. Walgraue said she would apply again. It enables them to do things that they would not otherwise be able to do. 167 96.551 Jackson Street Roundhouse Museum Development Grant Amount: $ 12,000 Minnesota Transportation Museum Description: The objective of this project is to bring the former mundhouse on Jackson Street up to building code compliance in order that it can be opened to the public as a Transportation Museum. The museum is expected to complement the Science Museum of Minnesota and the Miunesota Children's Museuxn. Contract Compliance: This project has not been implemented. Originally this application for STAR funds was geared towazd design and engineering features of the museum and its utiliries. Because this did not agree with the program limitations, the description was changed to involve the installation of the utility services. This change slowed the process down. Currenfly phase I which will be funded with STAR money will go towazd the installation of utility services. It is expected that implementation of the project will begin in late 1997 and continue until Spring of 1998. ISTEA (Intermodal Surface Transportation Efficiency Act) and MNDOT have also slowed the process time by long approval processes. Comments: Ms. Sims, the project manager, is grateful for the STAR program. She said that the STAR works well with ISTEA. It helps forge nice working relationship. fC.'f:3 I�, • ., 96.552 Museum on Wheels/ Storefront Gallery North East Neighborhoods Development Corporation Description: Grant Amount: $10,000 The objective of this project has been to create leasehold impmvements to a storefront on Maryland in Phalen Village , which will allow Northeast Neighborhoods Development Corporation (NENDC) to bring culturai e�ibits to that community. The project includes the purchase of portable display equipment, which will allow Northeast Neighborhoods Development Coxporation (NENDC) to bring cultural e�ibits to various locafions in NENDC's service area (banks, businesses, libraries, community centers), and leasehold improvements to the Phalen Village Storefront, which will allow the property to function more adequately as an art gallery. Contract Compliance: This project has been partially implemented. The portion of the project that has occurred involves the purchase of portable display panels. The other major part of tYris project, improvements to the space at 1545 Maryland Avenue East, has not taken place because Karen Swenson, the project manager, is intent to renegotiate the original STAR contract before further progress is reached. During an interview in September 1997 she indicated that a contract condirion requiring a five yeaz lease to ensure that the capital improvements have at least a five year life applies to a loan and requires repayment if not met. Swenson said she requested a grant for this project. At the time of signing the contract Swenson declared that she reached a verbal agreement with the STAR coordinators that the contract would be revisited at a later fime at which point the contract would stipulate ttiat the STAR funds were a grant. The project files and the contract indicate that the funds awarded for the Museum on Wheels project are a grant. Ms. Swenson stated that she has questions conceming whether the STAR program will honor her � future requests for reimbursement on this project. The STAR program requires verification of the length of the lease for the properiy at which the project is to be implexnented. Originally the � Northeast Neighborhoods Development Corpora6on (NENDC) had a ten yeaz lease on the storefront at 1545 Maryland Avenue East. Since the time the original lease was executed, the owner of the storefront sold the property. There was no stipulation in the lease that it would be honored by � successive owners during the lease period. The new party took ownership of the property at the end of August 1997. As of September 1997 Swenson has attempted to draft a lease with the new owner which will meet the site controi requirement of the C�ltlu�al STAR Program. Until a five year lease � between NENDC and the new owner can be signed it would not be prudent to make improvements to a space that may have to be vacated. , , � Up to this point the portable display panels haue been used not only at NENDC's office space on Maryland but also at the Landmark Center and the Saint Paul Civic Center. At these locations the panels have displayed pians for the new community center in northeast Saint Paul. 169 � Because of the uncertainty surrounding any possible lease with the new owners, Ms Swenson was � unable to address the question about how long it will be befare the project is fully implemented. ' � , ' � � � ' , C� � , � � ' LJ 170 � Q� - �aS 96.554 Minnesota Centennial Showboat Renovarion Grant Amonnt: $22,900 University of Minnesota College of Liberal Arts Description: The obj ective of this project will be to renovate the Minnesota Centenniai Showboat to meet health, safety, and access code requirements, and move it to a permanent location in the Mississippi River at Harriet Island. It will be the summer home of the University Theatre productions, and used by other organizations for a variety of purposes. This project has not been unplemented. The planned renovarion of the showboat is still intended to be executed as originally proposed. According to Tom Trow, the project manager, the boat which is a smiuner venue for University Theater productions, will be completely overhauled. Being able to use the Centennial Showboat is a boon to the University of Minnesota Drama Department because it allows them to perform long-n,nning productions. Trow said that productions that run for a longer period offer better training circumstances to students interested in performing arts. He said the students work in every aspect of theater when the troupe is using the showboat. This traiuing opportunity is not only good for the drama department but also for the community. The showboat allows the community to experience shows in a unique forum. The broader community is also served because young artists aze given an opportunity on the showboat to shazpen their sldlls as Thespians. From there many artist go on to perform in local productions. The showboat wili be docked at Harriet Island on the river&ont of Saint Paul. In particulaz it will serve tourists, theater enthusiasts, and the dratna community. Over past yeazs the boat has been boarded by 10,000 to 15,000 passengers annually. Attendance is expected to increase, the project manager did not laiow to what extent. The boat has and will be auailable for rental to other groups. Contract Compliance: The contract was signed on December 1, 1996. As of early September 1997 bids aze being quoted for the renovation of the Minnesota Centennial. Trow expected that unprovements will be started by November 1997 and be completed by the summer of 1998. Under this progress schedule the improvements will not be accomplished within the anticipated time frame, but it will be within the contracted time frame. Trow said the improvements have been delayed because they haue had irouble getting bids on the renovation, and he said when they do the cost is prohibirive. Moreover the project costs aze going up. Tmw believes that these circumstances aze attributable to the robust economy. He tlunks that as the construction season ends it will be easier getting a contractor who can work within their budget. Most improvements will be done by a contractor. Volunteers will paint and decorate the showboat. Comments: Trow said the amount of materials sent from the Cultural STAR Program to manage lus STAR pmject have been daunting. Maintaining the proper paperwork will be labor intensive he expects. Trow said the bureaucracy needs to be stream-lined. He also said the application fee is 171 inappropriate. The city should fully fund the operation of the STAR Ftogram. Mr. Trow said that his minimal interaction with the staff oFthe Cultural STAR Pmgram has been helpful. 172 , � 96.559 Jemne Building Project Saint Panl HRA ' � � � ' � , ' ' ' ' lJ LJ lJ ' C� a�-ca� Loan Amonnt: $382,800 This proj ect involved the acquisition of the 7emne Building on Saint Peter Street from the Mivnesota Museum of American Art. Inirially the purpose of the purchase was to improve the culhual corridor. It would do this by preserving a downtown art deco building, and potentially directing its use towazd one in the Arts. There were discussions that the building may be purchased by the organization wlxich represents the Leroy Neiman Gailery effort in Saint Paul. The group was given a deadline within which they could purchase ffie building. Tlus date has elapsed. As of early October 1997 the HRA is in the process of selling the Jemne Building. The building's purchase price has been set at $527,828. PED project services staff sent out offering packages to 50 potential developers. Interested purchasers can tour the Jemne at two open houses; one on October 2 from 1-3 pm and one on October 15 from 1-3 pm. Deadline for submitting proposals is 4:30 pm on November 25, 1997. 173 ' Credits Anthor: Fran Burns, Graduate Student Intem Humphrey Institute of Public Affa;rc University of Miuuesota Prepared for and printed by: Department of Planning and Economic Development City of Saint Paul 1400 City Hall Annex 25 West Fourth Street Saint Paul, MN 55102 For additional copies of this report, please call (612) 266-STAR (7827). The City of Saint Paul does not discrinunate on the basis of disability, race, sex, sexual or affectional orientation, age, color, creed, national origin or ancestry, marital status, religion, veteran status, or status with regazd to public assistance in adxnission to, or treatment or employment in, its programs or activities. 174 �, 9� _ 3 j L} � q� Council File #�a� d ( � ORIGINAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines : RESOLVED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Councii of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it INSERT HERE: FURTHER RESOLVED, that the Mayor and City Council hereby formally express their gratitude to the members of the Neighborhood STAR Board for their efforts and commitment to the STAR program and the City of Saint Paul. FURTHER RESOLVED, that the Council of the City of Saint Paul also incorporates and 2C10ptS 3S D2Tt Oi tt1E PT'oeT'am C�iiirlt?linac_ tha writtan nrnnnenlc nffa.-o.7 h.r I'.,,,,,.,�1...� Harr and Planning & Economic Development: � Adopted by Council: Date [�I�__� ,� �� Q Adoption Certified by Council Secretary: 3y �p Y Green Sheet # �� RESOLUTtON CtTY OF SAINT PAUL, MINNESOTA B ��°_`_'�_?�]�'��- `' Jr G �_ ff._i i! Form ppr ved i Attorney: By: 9�-1�.8` �n� cFi JJ1�.J V �A,�EM�� DATEI ITIAT D GREEN SHEE �� INRIAVDATE INRIAVDATE CONTACTPERSON&PHONE mDEPARTMENTDIRECTOR CMCOUNCIL µ�'� �'3 RSSIGN f�CRVATipRNEY CITYCLERK NUMBEN FOfl ��d� MUST BE ON COUNCIL AGE DA BY ( ATE) pOUTING O BUDGET DIRECTO FIN. & MGT. SERVICES Diq. a �$ q$ OROER MAYOR (OR ASSISTANT7 �� TOTAL # OF SIGNATURE PAGES _.�_ (CLIP ALL LOCATIONS FOR SIGNATURE) ACTIONRE�UESTED: �PPR��V OF 1�9g NFa�+F�� ` ' �' ` �Rc��µ C�u.co�U�� pECOMMENDA710NS: Approve (A) or Reject (R) PEflSONAL SERVICE CONTRACTS MUS7 ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE CAMMISSION �� Has this person/firm ever worked under a contrac[ for this depattment? _ CIB COMMIT'fEE _ VES NO — S7AFF 2. Has ihis personHirm ever been a ciry employee? — YES NO _ DIS7RIC7 COUFi7 _ 3. Does this personrtrm possess a skill not normally possessetl by any curcent ctty employee? SUPPOFiTS WHICH CqUNCIL O&IECTIVE? YES NO Explain all yes e�nswars on seperate sheet and ettaeh to green sheet INITIATING PAOBLEM, ISSUE, OPPOFTUNITY (Who, Whet, When, Where, Why)� �PTe'2 �MPt,ehlENt?N6 'f�lE ��Ifo�fBoR{iao� `�t�AcR PR��►w� t� 19q�, �f� 5�ra. go�an -rr�sNt��p o� Nuw�s�- �� coMwt�oE'D Gb1��5 �'T� PRoI'oRArM. �Tk1E5� RSCO'wiwfc�DATtoiuS �.��, � Re�t�tEUx� CiY ?� M�`loR, c�rY �7'�cFF� AND NKM�uS Cow�.�tuW� � oRfbl�izAc'Ro1.�S� '�- �fLE INU-c,if�C-"D i� 'r't!�' R�1 S�p ADVANTAGESIFAPPROVE�: �"� Qctc�tutwt w�u. gE N�o0.�E PRO-Ae�c7u� ��F R.�P�NSwS ,.� �� Np,�OS oF Tf{� P�R'r�GtPAT7TS DISADVANTAGES IF APPROVED: '°�` �„�D�C/ — DISA�VANTAGES IF NOTAPPROVED TFF�i PRpfoKJt�l WlLL lJOT IrIOUFi �F�RWARO l.t�lTN "t'FlE ��jq$ �?gj{t440 ��'cle rotxlDEL1uES, TOTAL AMOUNT OF TRANSAC710N $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVI7Y NUMBER FINANCIAL MFORhfATION' (EXPLFIN) L� . � Council Member Hazris March 4, 1998 � Y`t�e y� v`C� e r.�S STAR Proposal To maintain the competitive chazacter of the program, to provide some flexibility within the STAR program and to continue to encourage long-term, strategic investment in our community, ihe following is proposed: Maintain existing annual cycles for the Neighborhood STAR Grant J L,oan Program and the STAR Small Grant Program. 2. Dedicate 100% of annual STAR Smal] Grant and STAR Neighborhood Cnant revenues to existing annual competitive processes. 3. Dedicate 75% of STAR Neighborhood Loan revenues to existing annual competitive processes. 4. Dedicate 25°l0 of Neighborhood 5TAR Loan revenues to a special fund that can be accessed year-round by appiicants with the following conditions: The applicant must demonstrate a de�nite need to forgo tne annual STAR process (i.e. there is a time constraint); The loan must be approved by the STAR Board and the City Council; and Any remaining balance in this fund will be allocated by the City Council as part of the neighborhood STAR annual cycle. ��-ra� � SAINTRAUI STAR VAOGftAM �� 1 1� �� i f' � �� • � �� . - Applications for STAR LOANS will be accepted at any time throughout the year. ��, �- Elimination of pre-application process. All completed proposals will be considered for funding �- STAR LOANS less than $Sa,000 will nat require a 1:1 match. � ?..� - Seed Capital Fund to be eliminated, making new program allocation goals: 60% laans and 40°lo grants. �- Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. �- Under the Revolving Loan Program, recourse will be to the end borrower. 1lPED 1415YS\S{{p�DUGH1STAftPROP. W PD � oR��NAL Presented By Referred To Committee: Date 1998 Neighborhood Sales Tax Revitalization Program Guidelines E� RESO�VED, that upon the recommendation of the Mayor, and with advice and input from the Citizen Neighborhood Sales Tax Revitalization Board, the Gouncil of the City of Saint Paul does hereby adopt the changes to the Neighborhood STAR Program Guidelines as identified in the attached document; and be it FURTHER RESOLVED, that the Mayor and City Council hereby formaNy express their gratitude to the members of the Neighborhood STAR Soard for their efforts and commitment to the STAR program and the City of Saint Paul. � Funnt�k 2Esau��p, �iaf t�ic L��"`�� fs� rucar�ura�s a�u�2�fs t�o ��f v� � Pra ��'�'��, �� P,� �t� i�� a�d a;r� ...1.1_ Adopted by Council: Date Adoption Certified by Council Secretary: �y Approved by Mayor: Date � �Y�� 1 ��' ag a� dCouncil File # +� � �� s� Green Sheet # �� RESOLUTION CtTY OF SAINT PAUL, MINNESOTA h'�u1i �,1998'1 Planning & Economic Development: : rJ �� B _ �� -�-- Form , ppr ved �)Ci � Attorney: By: � DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Pumela Wheelocl5 Direclor CTTY OF SAINT PAUL Norm Coteman, Mayar DATE: February I1, 1998 TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmember Fiarris Councilmember Lantry Councilmember Reiter 25 West Faurth Sheet Sainr Pau[, MN SS102 FROM: Pamela Wheelock, Directo� Deparhnent of Planning and Economic Development SUBJECT: STAR Neighborhood Program - Cycle 4 ��'�f Telephone: 612db6-6900 Faaimile: 612-228-3220 In the first three cycles of the Neighborhood STAR program over $12 miliion doilars has been awarded in loans and grants, leveraging more than $43 million in additional activity. Nearly $600,000 has been awarded for 39 Nei�hborhood Small Grants. Loan repayments meanwhile in 1997 were approximately $160,000 and an estimated $500,000 is expected in 199$. During each year of the first three cycles, changes have been made to the guidelines, in an attempt to make the program more responsive, e�cient, and user friendly. This year is no excep6on and the STAR Board is recommending several changes to the guidelines to facilitate awarding the funds to neighborhood arganizations and smaii businesses more quickiy. These recommendarions are in response to concerns they have heard during the previous cycles. They, too, are vitally interested in being more responsive to the citizens and businesses. The Board's recommendations have been endorsed by the Mayor, staff who work with applicants, and other interested parties. I strongly encourage you not to delay in adopting these recommendations so groups can begin to make applications for these funds. We consistenfly hear from neighborhood development organizations that it is important that they haue predictability as to funding streams. It is not only important to speed up the process but also to keep the cycle going so they can move forward with their plans and projects. It is PED's desire to utilize STAR and other sources to develop thoughtful, sirategic projects in partnership with neighborhood organizations; these changes allow us to do a better job at that. � Foilowing is a short stimmary and reasoning for each of the guidelines changes the STAR Board is recommendiug. Staff agree with the Board that these changes would enable the Board and ° _ staff to be more responsive to applicants. APPLICATIONS FflR STAR LOANS WII,L BE ACCEPTED ANY TIlYLE THI2OUGHOUT THE YEAR. The STAR Boazd feels that it is often difficult or impossible for small businesses or neighborhoad organizations to anticipate their needs a year in advance. They are, therefore, recommending that applications be accepted at ANY time during the yeaz. They aze willing to convene as needed to review applications for recommendation to the City Council. A number of organi�ations have found themselves in a position of having marketed a program, built up enthusiasm in the communiry, only to find that they do not have enough funds to meet ail of the need. In other cases, opportunities come up which cannot wait up to 18 months depending on STAR program consideration and approval. It is also difficult to work around Minnesota's short construction season. This proposed change in the process would also allow groups to reapply during the year if the Board does not recommend a project, and, that group's circumstances change. ELIMINATION OF PRE-APPLICATION PROCESS. ALL COPVIPLETED PROPO5ALS WILL BE CONSIDERED FOR FUNDING. The purpose of this recommendation is again to speed up the application process and to reduce the amount of paperwork applicants are to submit. STAR LOANS LESS THAN $50,000 WILL NOT REQUIRE A 1:1 MATCH. The requirement far a match for loans less than $SQ,OQO again would mean less paperwork for the borrower. This match requirement often puts the City in a less advantageous position as a lender. It is particularly burdensome for those small fix-up loans. A minimusn match of one ($1) private dollar far every one ($1) STAR doliar received as a grant as well as ANY loan over $SO,OQO would still be required. County, private, state and federal funds can be used as a match. Priority will be given to projects matched with private funds. Matching funds are to be direcfly related to completing the project ar program in the applicant's proposal. Direct financial resources as weli as indirect contributions can be inciuded. The value of sweat equity and/or volunteer labor can be used for up to 30°/a of the total match. SEED CAPTTAL FUND TO BE ELIMINATED, PYIAKING NEW PROGRAM ALLOCATION GOALS: 60% LOANS AND 40°ta GRANTS. The Board has learned from the previous cycles that the seed capital fund was difficult to use in tlus pragram. They have also heard from appiieants that addirional grant money would be welcome; thus, the recommendation for a 60% loanl 40% grant split. �t��r LOANS �100,000 OR LE5S RECEIVING APPROVAL OF THE STAR BQARD MAY BE APPROVED BY THE DII2ECTOR OF PED. Again, this recommendation as to speed up the process and is consistent with other programs. Tnnely reports would be submitted to the City Council, reporting on all loans approved. UNDER TAE REVOLVING LOAN PROGRAM, RECOURSE WII�L BE TO TFIE END BORROWER. The current guidelines require that the revolving loan operator own the loans and recourse is to the entity operating the program. The STAR Boazd is recommending that recourse be with tha end-borrower. ��,� The attached material is for your review for the February 18th policy session on the STAR Neighborhood Program - Cycie 4. A. List3ng of STAR Board Recommendations B. Neighbarhood STAFt �oard Member List C. STAR Fact Sheet D. Draft STAR Guidelines E.. Resolution accepting STAR Guidelines. F. 1997 Annual Report G. Resolution Accepting 1997 Annual Report 1�PEDW^YS24SHAREDIOTTOLSTARMEMO.WPD .,, . ; NEIGHBURHOOD SALES TAX REVITALIZATION (STAR) PRCJGRAM STAR GUIDELINES S�AINT PAUL STA R P R4G RAM �� Revised February 25 9998 Strikeout version Additional copies of STAR Guidelines can be obtained from the Department of Pianning and Economic Development, 25 West Fourth 5treet, Saint Paul, Minnesota 55102, or call 266-STAR (266-7827). 98'-iz� STAR Draft Guidelines TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives 11. 1998 Expectations iil. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies PART 2 - Eligibility I. Eligible Applicants ii. Ineligible Applicants III. Eligible Areas IV, Eligible Activities V. ineligible Activities PART 3 - Application Procedure I. Decision Process I1. Proposal Identification and Development ill. Procedural Guidelines IV. Application Contents PART 4 - Project Selection I. The Neighborhood STAR Board II. Selection Process 111. Evaluation of Applications IV. Speciai Consideration February 25, 1998 Page 1 Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 10 Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 PART 5- Loans, Grants,-Seed-�a�itaF and Leverage Requirements 1. Amount of Funds Allowed Per Proposaf and Criteria for Small Grants Page 18 11. Leverage Requirements Page 19 III. Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 STAR Draft Guidelines Page iii February 25, 1998 9d' /2 8 STAR Draft Guidelines V. Project Development and Implementation PART 6- Review and Evaluation I. Project Evaluation 11. Annua{ Report to the City Council and Mayor III. Annuaf Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS February 25, 1998 Page 26 Page 28 Page 28 Page 28 Page 28 Page 30 For STAR guidalines or applications call 266-STAft {7827). For other information, call STAR Staff.� Sob Hammer {266-6693), Jill Hughes (266-6650) or Paut Mordorski (266-6683). STAR Draft Guidelines Page iv Fe6ruary 25, 1998 f � r ♦ STAR Draft Guidelines PART 1 - Program Description * Program Purpose and Objectives * 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * General Policies February 25, 1998 1. Program Purpose and Objectives Saint Paui neighborhoods are one of the City's most important strengths, and the sales tax proceeds represent an extraordinary opportunity to revitalize and invest in our neighborhoods. The sales tax proceeds, one of the City's most flexible funding sources, are io be ailocated through the STAR Program for capital economic and community development projects in Saint Paul neighborhoods. These very flexible City funds should promote sign�cant and positive long term economic impact. STAR funds should leverage private improvement efforts and investments and should be used when projects are ineligible for use of other available City resources. Desired Outcomes: The Neighborhood STAR Program funds capital projects that: A. Economic development: 1. enhance the commercial and industrial tax base 2. create family supporting jobs 3. improve andtor stabilize local businesses and provide attractive and economically viable neighbarhood commerciai areas 4. reuse land foliowing poilution clean up B. Community development: 1. improve andlor stabilize housing stock andlor increase market value 2, provide new housing that meets an identified need in the market 3. improve public infrastructure and private green space especially if the projects are linked to related residential or commercial improvements STAR Draft Guidelines Page 1 February 25, 1998 9�' -ia 8' STAR Draft Guidelines February 25, 1998 il. Mayor and City Council Expectations for STAR Proposals The Neighbarhood STAR Board is more likely to recommend funding for Projects and Programs that: 1. Increase or maintain the tax base as a primary benefit. 2. Are high quality, market driven and enhance neighborhood stability. 3. Are part of a City approved plan or initiative, and are targeted to address identified unmet needs. 4. Are the resuit of collaboration and partnership with appropriate stakehoiders. 5. Are part of a broad based and integrated approach to improving neighborhoods that results in larger and fewer pro}ects. 6. Address through a citywide program, needs that affect more than one neighborhood. 7. Include participation by private lenders, or a clear indication that private fender participation is not possibie or appropriate. &. Request Gity funds so the percentage of city funds in the project is the least amount with the best terms so as to maximize leverage of other resources. 111. Strategic Use of Funds Sales tax funds are a very important resource for St. Paul neighborhood improvement, particularly since state and federal funding is declining. It is critical that the City be strategic in allocating these funds to achieve the greatest impact. Applicants should consider the following: The STAR Program is an effort to fund capital prajecfs that could not be done through existing City programs, and p�ograms that fiil gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants should consider contracting with others to provide technical services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. • Appiicants should look for opportunities to implement existing neighborhood plans and strategies, such as smatl area p(ans, or to propose improvements in conjunction with other City-pianned improvements, such as residentiai street paving. • Community organizations are encouraged to plan for community STAR Dreft Guidelines Page 2 February 25, 1998 98-/28 STAR Draft Guidelines February 25, 1998 development over a period of several years so that, increasingly, STAR project funding can be guided by strategic priorities for successfui long- term improvement. tV. Performance-Based incentives The STAR Program is designed with incentives to reward successful projectslprograms. Key features include interest rates that are lower than market rates and pnncipal and interest repayments that are deferred for fhe firsf year. incentives are based on the type of STAR project or program. Loan Incentives for Projects 1. Rebate on loans: A rebate of up to 10% of the principai portion of the City loan repayment amount as an incentive for repayment of the City loan provided all payments are made on time. Rebates will be credited as additional loan principal.: 2. Interest earnings: Loans are deferred for 1 year from the date of the agreement with the City. This, for example, allows revolving loan operators (RLO's) who begin to make sub-borrower loans immediately, to benefit by receiving payments from sub-borrowers for up to a year before the first city-loan payment is due. 3. Other Revolving Loan Program (RLP} Incentives: a. Origination fee - Revolving Loan Operators (RLO) may coilect from the sub-borrower, a loan ciosing fee of $200 or 1%% of the principal amount of the loan, whichever is greater. This fee also covers any potential coliection costs. b. Rate differentiat - Revolving Loan Operators may request a loan from the STAR Program at a certain rate (example 5%) and propose to make loans to sub-borrowers at a higher rate (example 8%). The RLO may keep the difference in interest rates. c. Grants used for loan programs: Revolving Loan Operators may receive a grant from the STAR Program to be used to operate a low interest loan program. The loan repayments wifl be heid in an interest bearing account. The principal must continue to be used to fund the revolving loan program. The RLO keeps the interest. V. Program Funding A. Fifty (50%) percent of the proceeds of the half-cent sales tax, along with its corresponding interest earnings, are dedicated to investment in the neighborhoods (including the downtown residentiai neighborhood and small businesses serving that residential population) of Saint Paul. STAR Draft Guidelines Page 3 February 25, 1998 98-/z F� STAR Draft Guidelines February 25, 1998 B. Each program cycle wiil be announced in December with an estimate of available tunds. The estimated funds wiii be noted in the annuai City budget as Neighborhood STAR program funds. A. AI{ocations 1. Siz�y {60%) percent of the neighborhood portion of sales tax proceeds shall be allocafed to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and will build a Iong-ferm, growth fund source for the future. 2. F� (40°l0) percent of the availabie funds shaii be aliocated to directyrants. seeel-eap+tslfi�- VI. General Policies Proposals must 6e neighborhood-based projects designed with neighborhoad representation to strengthen Saint Paul neighborhoods and address perceived and actual problems, needs and opportunities. Proposafs can be a project, program, or strategy that resuits in capital improvements in Saint Paul. These proposais may be generated by neighborhood and civic leaders, organizations, and businesses. Innovative proposals are encouraged. (See Page 6, 1., I1., lll.} A. In allocating tunding for projects, it is the intent of the City to provide geographic equity ot projects and doilars, over time. B. Up to 15°l0 of annual STAR funds may be used for muiti year funding to accommodate larger, long term -projects. C. The same or similar proposal cannot be submitted to the CIB Committee or the Cultural District organization in the same year. D. For loans exceeding $50,000 and ALL grants, sales tax funds shaii be matched with other resources on at least a 1:1 basis. Loan requests under $50,000 submitted directly to the STAR Board do not require a match. E. Projects considered to be of insu�cient quality or impact will not be recommended fior funding, even if funds are available. F. In the event that Community Development Block Grants (CDBG) funds are added to the STAR Program, areas of the city that are generally considered eligibie for CDBG funds, should receive their fair share of CDBG funds as well as their fair share of STAR funds. STAR Draft Guidelines Page 4 February 25, 1998 i i . STAR Draft Guidelines PART 2 - Eligibility � Eligible Applicants * Ineligihle Appiicants * Eligible Areas * Eligible Activities * Ineligible Activities February 25, 1995 I. Eligible Applicants A. Any public, private, or non-profit entities, which are located within or do business within the cifij ofi St. Paui, except as identified in 11. below. B. City departments and quasi-governmental entities are eligible when in partnership with or supported by an established and experienced neighborhood group. C. Individual businesses are eligible to apply for $50,000 or more in STAR funds, provided the business is: 1. opening up a business in St. Paul; or, 2. expanding the space occupied; or, 3. creating new jobs. (Programs serving individual businesses for smaller projects are also eligibie.) II. Inetigible Applicants A. Churches and religious organizations. B. Political parties and political action groups. C. Federal, state, and county agencies and departments. D. Individual homeowners. (However, programs serving individuai homeowners wiil be efigibfe.) E. Individual businesses for proposals under $50,000. 111. Eligible Areas A. All areas within the legai limits of the Gity of Saint Paul. IV. Eligible ACtivitieS include any physical components of strategies, programs, andlor projects which strengthen andlor improve the neighborhoods of Saint Paul. Capital improvements have an expected life of seven or more years. STAR Draft Guidelines Page 5 February 25, 1998 9� �2 t STAR Draft Guidelines February 25, 1998 Some examples of efigibie activities are: A. improvements to residentiat, commercial and industriai property such as rehabilitation, construction or other capital improvements. Exampies include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, piumbing, mechanicai, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. 2. The project must be in compliance with all legal requirements of the City, such as: a. The property must he appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the improvements. d. Prior to project implementation, ali necessary permits must be obtained. Upon compietion of improvements, the applicant must have foliawed, and the property must meet, all applicable code, permit and license requirements. Finaily, the property must be properiy inspected and must have a current Certificate of Occupancy upon compietion, if applicable. e. An applicant must have the ability to repay if requesting a Ioan and be an acceptabie credit risk as determined by a bank or the City. (See underwriting standards). f. Funds will be refeased on a reimbursement basis upon receipt of documentation of eligible expenses. g. Little Davis-Bacon regulations (labor standards) must be followed as applicable. B. Economic development efforts such as new housing, business development or expansion, or parking development. The foilowing are eligible only when undertake� as initial steps of a larger STAR capital project that includes substantiaf rehabilitatian or construction: 1. Acquisition costs including purchase options; 2. Demolition costs; 3. Utility relocation and construction as it relates to a project; 4. Clearance: acquisition of land or a building for clearance wiil only be undertaken when it is an initial step in a proposal which will result in a capital project; 5. Pollution testing and soil remediation as part of a larger capital project. STAR Draft Guidelines Page 6 February 25, � 998 q 8 �Z � STAR Draft Guidelines February 25, 1998 6. Costs of developing parking facilifies are eligible activities. {f the parking is to be private(y owned, the STAR investment must be in the form of a loan, secured by a lien on the property. C. Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative lighting, etc. particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as weli as aesthetics. 2. The Program is not intended or normaliy sufificient to do major public improvements such as street paving, curb and gutter, sewer and water. Major pubfic improvements shouid be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvements, the STAR proposal must identify how this project area witi privately pay fior these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaliy-binding and enforceable plan for maintenance andlor operation over the usefut lite of the improvements proposed to be funded through the STAR program. The most acceptable method for maintenance and operation of above-standard public improvements is assessments on the property taxes of ihose receiving the benefit from the improvements, though proposals that commit private or non-profit organizations to operate and maintain above-standard public improvements will be considered, depending upon (at the City's judgement) the viability ofi the organization and the enforceability of the legal agreement. D. Direct project costs specifically pertain to the execution of the capital project. A minimum of 8U°lo of STAR funds must be spent on hard construction costs for physical improvements. Definition: Direct project costs are those which are necessary to carry out capital project construction to completion. Examples are dependent on the type of projecUprogram being implemented and may include: 1. building permits; 2. professional design, engineering, soil testing, environmental, legal, financing, licensing and inspection fees; 3. general contractor's charges (must be in line with indusiry standards); 4. developer's fee or project coordination fee that is appropriate to the projeet and in line with industry standards; 5. direct costs of staff management that are cleariy associated with STAR Draft Guideli�es Page 7 February 25, 1998 '% � STAR Draft Guidelines February 25, 1998 the completion of a capital project. persons receiving the benefit ot the project/program are not eligible fior developer's fee. (Example: a business owner rehabilifating his/her business site.) V. Ineligible Activities A. Any activity not of a capital (bricks and mortar) nature. B. Planning or study activities. C. Use of STAR funds to develop a STAR proposai or to organize an entity to manage a STAR proposal. D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be included in your total project descriptionfstrategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. E. Refinancing existing debts, except when it results in business expansion, job creation, or is part of a larger project. F. Non-fixed improvements (Example; o�ce equipment, computers, fumiture, te%phone systems). G. Working capital. H. General administrative expenses inciuding staff management, pianning, development and administrative costs and general maintenance costs. Costs accrued before final approval of the application, are not eligible for sales tax funding. J. Activities located outside the city limits. K. Major public improvement projects, i.e., street repaving, sewer work, recreation center, etc. L. Sweat equity - payment for the applicant's own labor and performance for construction or improvements. M. Projects within the Saint Paul Cultural District, as long as the Culturai portion of the sales tax is targeting that district. STAR Draft Guideiines Page 8 February 25, 1998 . , r: , STAR Draft Guidelines February 25, 1998 N. Duplication of a current City program such as the Houses to Homes Program, or the Water Utility's Lead Pipe Replacement Program. Applicants are encouraged to coordinate or /ink proposed projects with existing programs. PART 3 - Appiication Procedure * Decision Process * Praposal Identification and Development * Procedural Guidelines � Application Contents Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications foryrants are due approximately four to six weeks after Orientation Worksho� C. Review of SmaN STAR Grant final applications by STAR Board, foilowed by Gity Council approvai. D. STAR Board, Planning Commission, CIB Committee, and staff review of final applications for large loans and grants. E. Recommendations for funding submitted to Mayor. F. Final approvai of funding by City Councii. G. Commitment letters with specific requirements and time line for actions to be completed sent to those approved for funding. H. Contracts negotiated assuming stipulations and time lines have been met. NOTE: The annuai time line will be announced at the beginning of each funding cycle. 11. Proposal Identification and Qevelopment The STAR program encourages up front strategic thinking and planning at aii leveis and community coilaboration prior to the submission of applications. The goai is to improve the quality of the appiications qualitatively and technicaliy. Earty and active participation of Councii, community groups, interested individuais and staff is expected in development of proposals. A. COMMUNITY GROUPS AND INDIVIDUALS INTERESTED IN STAR FUNDING - Initiate program and project proposals addressing important neighborhood and community issues. Indicate levef of community STAR Draft Guidelines Page 9 February 25, 1998 9� �2 8 STAR Draft Guidelines February 25, 1998 support. Provide prioritiaed letters ofi recommendation rather than blanket recommendations for ali proposals within community boundaries or service area. 6. CITY STAFF - Provide tecnnical assistance tp applicants, 'rf requested, to help assure a complete and strong application_ Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other funding sources as a tool in accomplishing the City's goals. 111. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycie. B. City staff wiil make availabie for interested parties copies of the appiications tor comment and review. C. City staff wiil organize a Small Grant Program workshop at the beginning of each cycie to provide program application information to prospective applicants. Attendance at the orientation workshop is strongiy recommended. D. Applications may not be changed or modified once submitted. It is the appiicant's responsibility to thoroughly develop the proposal before submission. However, appiicants may be asked to provide additional information to the STAR Board in the course of its review, or applicants may be asked to consider a modified proposal as suggested by the STAR Board during its decision-making process. IV. Application Contents - Large Loans and Grants All appiications must be submitted on the STAR application form and contain the following information, including but not limited to: A. A description of the proposai, inciuding: 1. Neighborhood probiems or needs that the proposat addresses. 2. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or efements. 4. Neighborhood impact and projected results. B. Level of �eighborhood support and participation. 1. One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be pi'iOntiZed. exampfe: If an organization sends letters of supporf for 5 proposa/s, fhey must indreate ist chorce, 2nd, ete. STAR Draft Guidelines Page 10 February 25, 199$ 9� /z� STAR Draft Guidelines February 25, 199& 2. Description of neighborhood participation used in proposal development. C. ApplicanYs management experience and capability, inciuding past experience with similar programs. A board membership list must be provided, if applicable. D. Requested amount and type(s) of Sales Tax funding (grant, loan). Terms must meet the STAR program guidelines and goais. E. Fulty devetoped budget inctuding: 1, Construction estimates. 2. Level and source of private commitment. 3. Sources and uses statement for ali project funds. 4. Ali required financial information such as: a project proforma, sources of private lender financing, three years of financial data, including annual balance sheets, operating statements, and/or tax returns; and other information as required. F. Time line for project that is specific and lists milestones. G. Map indicating project location and street boundaries. H, For proposed programs, either complete program guidelines must be attached, or, at minimum, questions such as the following must be answered on the finai appiication: 1. How will you choose who will receive loan/grant? 2. Do you have a loan or grant committee, and what is its structure? (Example: number, types of expertise) 3. Wili there be a mortgage on the property or a"due on sale" requirement? 4. Will there be a residency requirement? 5. What will be your underwriting criteria? Other questions as appropriate may be added to the application form. If the proposal is funded, the guidelines must be approved as part of the contract with the City. Confliet-of-interest policy of entity. Evidence of site control at the time of appiication. Evidence the applicant has {egal authority to carry out the project on the property. K. For proposais that would remove property from the tax rolis, a description of a proposed PILOT (payment in lieu of taxes) that will replace the lost property tax revenue. STAR Draft Guidelines Page 11 February 25, 1998 9�-iz� STAR Draft Guidelines February 25, 1998 L. If above-standard public improvements are proposed for funding, a description of the legally binding and enforceable plan for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a description of how they will measured. N. Application fee: A non-refundabie application fee of $100 must accompany application forms. A fee of $50 will be charged for the Small STAR Grant Program. O. Appiications which are incompfete after the due date wiil be returned to the applicant. Applications must be f� completed. Appiications that are incomplete wiil be ineligible for further consideration. If a proposal is incomplete or does not appear to be sufficiently developed to allow for reasonable review, the STAR Board may return the proposal to the applicant. The Board may suggest that, provided further development work is completed, the proposal may be re-submitted. Applicants should form coalitions if capacity to implement a project is limited. Contract responsibilities for joint applica�ts must be spelled out in the STAR contract, following funding approval. PART 4 - Project Selection * Neighborhood STAR Board * Selection Process * Evaluation of Applications * Criteria for Special Consideration 1. The Neighborhood Sales Tax Revita(ization (STAR) Board is appointed by the Mayor and approved by the City Gouncil. The 15 member board setves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. II. SeleCt1011 P1'OCeSS - the selection process for grants will be competitive and the Board wi(1 consider the quality of the proposals. The number of applicants to be funded is dependent on the size and quality of the proposals and the availability of fiunding. STAR DraR Guidelines Page 12 February 25, 1995 i i � . STAR Draft Guidelines February 25, 199$ A. Applications, upon submission, may be reviewed and summarized by staff. Applications wili: 1. Se accepted for review by the STAR Board. An estimate of City staff project management costs will be added to the proposal. Additional information will be provided to the Board by the folfowing: a. The PED Credit Committee will review the loan applications for fiscal responsibility, risk evaluation and appropriateness of interest rates, terms and conditions, and provide this information to the STAR Board to assist them in making recommendations to the Mayor and Gity Council. b. The Planning Commission will review proposals for compliance with the City's Comprehensive Pian and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informationai purposes to aitow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. if other entities want to review and make comments on applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board aciion. The applications, excluding financial attachments, wilf be available for review in centrai locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. -OR- 2. Be rejected by the STAR Board: a. Applications that are incomplete after the due date will be ineligible for further consideration. b. Applications that are regarded as premature or insufficiently developed will be returned to the appficant. B. The STAR Board will strive to identify the best possible proposa{s within the context of the STAR Program guidelines. C. The STAR Board will also consider CIB Committee and Planning Commission comments, and credit committee guidance, and make STAR Draft Guidelines Page 13 February 25, 1998 � i .� STAR Draft Guidelines February 25, 1998 funding recommendafions to the Mayor and City Council. D. The Mayor will review the recommendations of the S7AR Board, CIB Committee and Planning Commission comments, and forward his recommendations to the City Council. E. The City Council will review the Mayor's recommendations and, by resolution, make final selections of STAR project proposals and approve their budgets. III. EValUatlon of AppIICBtIOnS: Proposals will be reviewed for the following eligibility and additional selection criteria. A. Proposal supports City Council priorities for the use of the Neighborhood Sales Tax proceeds. B. Proposal meets the minimum leveraging ratio. (See "Leverage", Part 5.11) C. Proposal is an eligible program activity. (See "Eligible and Ineligible Activities" sections - Part 2.IV and � D. Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small area plan, capital allocation policy or adopted City ordinances and policies. F. Proposal is financially feasible. Requested STAR funds together with other project resources are adequate to complete the proposed project. G. Managing organization has the capability to successfully manage and implement the project or program. H. Proposal effectively addresses a previously identified or otherwise clearly documented neighborhood need or goal. Proposal was developed with sufficient neighborhood/community input, and is neighborhood based. STAR Draft Guidelines Page 14 February 25, 1998 9�-i2 8 STAR Draft Guidelines February 25, 1998 IV. Special Consideration: Proposals may receive more favorable consideration during the selection process if: A. Pcoposal has the following: 1. a positive impact o� tax base; 2. a positive impact on neighborhood businesses; 3. a positive impact on residential neighborhoods; and/or, 4. a positive impact on job creation (State law requires accountability fior public funds spent on job-creation projects). Note: To avoid double-counting ofjob creation, please take the total number of jobs, figure in all public monies, and pro-rate the number of jobs based on the percentage of STAR doflars in ihe project. B. Proposai is part of a well-defined, broad strategy for neighborhood development or maintenance. G. Activities are su�ciently concentrated within an identified geographic area to result in a high visual or economic impact. D. Su�cient pianning or feasibility analysis indicates a high probability of success. E. Neighborhood support is documented—an appropriate mix of residents, property owners andior business people relevant to the project were included in the planning, development and implementation of the proposal. F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. G. Proposal leverages additional funds or resources which exceed the required match. H. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. Proposal is recommended in a District Council Plan, the City's Comprehensive Plan, in an adopted small area plan, or through another similar neighborhood planning process. K. Proposal is in reaction to, or anticipation of, some City action. Examples: STAR praft Guidelines Page 15 February 25, 1998 � � • , � STAR Draft Guidelines February 25, 1998 a condemnation for eminent domain, widening of a street, or other public improvements. PART 5- Loans, Grants, and Leverage Requirements * Amount of Funds Allowed Per Proposal and Criteria fior Small Grants * Leverage Requirements � * Operating a Revolving Loan Program (RLP) * Loan Standards * Project Development and Implementation I. Amount of Funds Allowed Per Proposai and Criteria for Small Grants A. Regular STAR Program 1. There are no maximum loanigrant request amounts for the regular STAR program. 2. The minimum for the regular program is greater than $20,000. Individuai business requests must be for $50,00� or more. (See 2.I.0 for more details.) Request for funds of $20,000 or less will go to the Small STAR Grant program. B. Small STAR Grant Program - requests for amounts of $20,000 or less wifl be in the form of a grant. The application and selection process wiil be reduced. Funding approval may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Smali STAR Grant Program is $20,000. 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a projecYs selection and approval, a standardized contract will be signed witn the Cifij. it. Leverage Requirements A. A minimum match of one ($1) private dollar for every one ($1) STAR doliar is required for loans that exceed $50,000.00 and all grants. B. County, Private, State and Federal funds can be used as a match, C. Priority will be given to projects matched with private funds. City funds, such as CDBG, TIF, CIB, and HRA funds cannot be used as a match, unless the City funds are loans. City loan funds which will be repaid are considered an eligible match and forgivable City loan are not eligible. STAR Draft Guidelines Page 16 February 25, 1998 9� /Z� STAR Draft Guidelines February 25. 1998 D. Applicants are encouraged to finance STAR direct project management expenses with outside private resources, i.e., fioundation grants, cash donations, etc. and to use these funds as part of the match. Staff administration and marketing of the STAR projecUprogram must be funded with non-STAR dollars, and may be used as a match. General operating funds of the organization are not an eligible match. E. Matching funds must be directly related to comp{eting the project or program in the applicant's proposai. F. Eligible Matching contributions may include: 1. Direct financial resources such as private expenditures for commercial or residential physical improvements, contributions or funds raised from within the neighborhood, foundation and corporate grants, and local lender commitments or operating assessments estimated over the useful lifie of the improvements. 2. Indirect contributions can incfude: in-kind services from residents and businesses such as personnel, professional services, office space, project supplies, volu�teer labor, and sweat equity for physical improvements. The value of sweat equity and/or volunteer labor may not exceed 30% of the total match. G. Ineligible matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR applicants such as already existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. (Higher sweat equity matches wiil be considered for the Smail Grant program.) 4. General operating expenses. 5. Any donation not directly related to the STAR projec� 6. Any forgivable loans and Gity GDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9, Any improvements made prior to submission of the final application. H. Operating Assessments: If STAR capital funding is to be matched by the operating assessment, no funding can be disbursed until final ratification of the matching operating assessment. Under no circumstances will any match be reimbursed with STAR funds. STAR Draft Guidelines Page 17 February 25, 1998 9� /a� STAR Draft Guidelines February 25, 1995 J. The STAR Board may, at their discretion, recommend approval of other matching contributions on a case-by-case basis. K. Exceptions to the match requirement will be considered by the STAR Board in highly unusual cases, such as when a proposal is in response to an urgent need or disaster. L. When interim financing is used, the grant portion of the project will be considered matched when private funds replace the loan amount. For example: rehab of a house costs $90,000; appraised value after rehab equals $60,000; resufting in a subsidy of $30,000. The STAR program provides a grant of $30,000, and interim construction financing of $60,0�0. Private mortgage dollars of $60,000 are repaid to the STAR program upon sale of property, and is considered a match to the $3�,0�� grant. �n= _ -- :: ---- -- --- -- - --- - - -- --- - -- ---- -- - - - -- - - =-- ------ -- - -- -- - ---- --- -- - - - - - - -- - --- - uttii=i i '_ "': ' ' "' _ _ ' " _ ':: ' ' ' ' "'_' "" '"" ' "" ' " i _ " '_ ' " ' " ' "'" " " "' ��iti%tG�if:Nnr��u:�:.�in�iGnr.��m�iya:niiti��indrii%�ic�nir:.�i��eJ.uG�ai�i m�:: ' _ IV. Operating a Revolving Loan Program (RLP) Revolving Loan Program: Applications may be made to the STAR program for funds to operate a revolving loan program that allows the STAR funds to be recycled for 3 or more years from the date of the contract with the city. 1. The City and the STAR loan recipient sign a contract authorizing the recipient to operate a revolvfng loan program. 2. The STAR loan recipient—the Revolving Loan Operator (RLO)—makes capital improvement loans to sub-borrowers. 3. Description of terms: All sub-borrower loan payments may be sent to a servicing agency hired by the City. The payments are STAR Draft Guidelines Page 18 February 25, 1998 9�l-�2 � STAR Draft Guidelines February 25,1998 held in an interest bearing account reserved for the RLO. The principal, which must be used for capital improvements, is available to the RLO for additional sub-borzower loans. The interest may be used by the RLO as needed. EXAMPLE: a. Year 1: as with all loans, there is no charge of i�terest or principal to the RLO. b. Years 2 and 3: monthly interest and/or principal payments on the total STAR loan is paid to the City during the 2nd and 3rd year. Principal payments to the city may be deferred as agreed upon by the RLO and City staff. c. Year 4: principai and interest payments for the RLO's STAR loan are based on the amortization schedule for the entire STAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthiy basis from year 4 until the loan is repaid to the City. Applicants may request a longer period of time to revofve the STAR funds. The City will review the condition of the RLO's files, sub- borrower loans, and repayment history prior to approval of an additional term. 4. Risky loans: If a RLO desires to administer a loan program of moderate risk or a mix of high and low risk loans, an application should be considered for a STAR grant or a combination foan/grant to help the RLO mitigate the risk of non-payment. Both grant and loan fiunds can be loaned to sub-borrowers through the revolving loan program (RLPj. The grant funds may be used to provide a cushion against default of sub-borrowers. lf a RLO desires to administer a loan program where repayment ability of the borrower is highly questionable or doubtfuf then an application should be made for a STAR grant. V. LOail St811daPdS (The financial incentive to encourage repayment of STAR {oans are listed in Part 1, IV, on Page 2.) The goal of the STAR loan program is to earn 5°la interest over time. However, applicants may propose rates and terms that best suit their project. A. interest rates and terms will be proposed by applicants. Rates and terms may be modified after financial analysis of the applicanYs request by the PED Credit Committee. Results of that analysis are fonrvarded to the STAR Board, which makes recommendations fior City Council action. STAR Draft Guidelines Page 19 February 25, 1998 9� iz � STAR Draft Guidelines February 25, 1998 B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City will be listed on conditional mortgages and conditional guarantees to be signed by the sub-bo�rower and the RLO. This provides some protection for taxpayer dollars in the event that the RLO goes out of business. C. Default: a loan is in default when mote than 10% of the amount due to the City is delinquent. 1. On projects: the following action will be taken: a. City staff works with the borrower on a correction plan or a work-out plan for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process and collection of the borrower's STAR loan. c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: (1) collection endeavors; (2) workout plans; (3) foreclosure procedures 3. Other remedies for default andior poor performance: a. The entity must demonstrate how the conditions that led to the default have been remedied: staff training, staff experience, cofiaboration with more experienced lender, etc. b. The entity may be disqualified from participating in the STAR program. D, City origination and servicing fees 1. Individual payments for single projects and all payments for revolving loan program (RLP) loans will be processed through the City. Sub-borrower loans initiated through revolving loan programs will be originated and closed by the Revolving Loan Program operator (RLO). 2. Servicing fees. a. Loans and grants originated through the City (programs or single projects) will be charged a closing fee equal to 1'/z% of the STAR amount, before any disbursements. STAR Draft Guidelines Page 20 February 25, 1998 9� iZ� STAR Draft Guidelines February 25, 1998 b. The City's servicing agency will charge a fee per loan payment. c. A charge of 5% of the monthfy payment may be assessed on late payments over 15 days delinquent. d. If another party assumes the mortgage, a 1%z% assumption fiee on the outstanding balance wili be charged (assumption will occur infrequently and must be approved by the City). G. Loan loss percentage: 1. STAR Program portFolio: In order to address loan needs which can not be met through standard financial institution lending programs, the STAR Program is allowed up to a 20% loss rate. The City's risk rating system will be used to help assure that the program operates within this range. 2. Loan loss percentage - Revolving Loan Programs: Revolving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principal payments. H. Risk rating: All loans will be risk-rated, utilizing basic fundamentals of sound credit. These fundamentals include: an evaluation of the borrower's overall capital position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvallservicing. Additionally, considerable weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The following categories are used to assign a risk rating: Risk Ratinq # °lo Loss ACCEPTABLE (1} 5% SUBSTANDARD (3) 10% , DOUBTFUt (4) 50% LOSS (5) 100% A portfolio rating no lower than a Substandard rating is necessary to maintain the 20% {oan loss fevel allowed by the STAR program. Since nonrecourse Ioans would drop the loan loss level below the 20% requirement, these loans are not appropriate for the STAR loan program. !n most instances, organizations looking for a nonrecourse loan should apply to the grant program. Because it is not possible to determine the specific quality of individual loans that will be made from a revolving loan program, certa+n standards STAR Draft Guidelines Page 21 February 25, 1998 , , STAR Dreft Guidelines February 25, 1998 for the program must be set to obtain a particular risk rating. Groups that can develop thorough underwriting standards will receive a better risk rating. All Loan Program (RLP) final applications should be accompanied by detailed and quantifiable underwriting standards. Vl. Project Development and Implementation A. Upon selection by the City Council, the STAR project applicant will: 1. Receive a letter of commitment which specifies a period of time during which the applicant must refine its project or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved appiicant wili have 6 months from the date of City Council approval to enter in to a City STAR agreement. Failure to execute an agreement will result in a cancellation of the City commitment. B. Implementation of the contract. The contract will be entered into between the City of St. Paul and the selected applicant and must contain: 1. A Scope of Services to be performed by all parties; 2. A private match section; 3. A budget seetion outlining all funding sources; 4. An implementation time line; 5. Appropriate liability insurance which insures the City of St. Paul; 6. Conflict-of-interest statements; and 7. Adherence to Federal, State and Local regulations as applicable. Policies pertaining to the use of funds such as prevailing wage standards, relocation requirements, a�rmative action, targeted vendor programs, the First Source program and state corporate welfare requirements. The nature of the project (i.e, residential vs. commercial) determines which regulations appiy. 8. Staff will hold a compliance meeting prior to implementation of the contract to idenfrfy regulations applicable to project activity. The contract will be signed in accordance with City policy. STAR applicants are cautioned not to make any financial commitments until they fully understand potential compliance and funding regufations. STAR Draft Guidelines Page 22 February 25, 1998 i r i i STAR Draft Guidelines February 25,1998 C. Sales Tax Fund distribution 1. Sales Tax Fund allocations will be provided on a reimbursement basis. Fina1 payment will be made upon completion of the project and receipt of the final project report and evafuation. At the time of completion ofi all activities contained in the agreement or upon expiration of the agreement, any remaining project fund balances will be returned to the STAR Fund. 2. If a program, such as a revolving loan fund, is established by the applicant using grant dollars, repayments accrue to the applicant for reuse in the program for which the grant was approved. 3. !f a revolving program is established by an applicant using loan dollars, the loan must be repaid in full. Any excess funds accrue to the applicanYs account and the program operator is responsible for handling delinquencies of loans they have originated. 4. As an incentive for fiscal responsibility, a percentage of the principal portion of City loan repayments 10% will be credited to the borrower annually. The remaining 90% is returned to the City's Sales Tax Fund for reinvestment in capital projects. D. Progress: Projects are expected to be completed within a maximum two- year time ftame as approved by the City Council. Proposals are selected based on certain criteria and may not be significantly changed during project implementation. PART 6- Review and Evaluation * Project Evaluation * Annual Report to the City Council and Mayor * Annual Review of Priorities * Audits and Quality Control I. Project Evaluation A. Status reports will be generated for each project, which will provide an ongoing monitoring process. The report will include project expenditures, status of match commitments, and progress toward meeting expected project outcomes (as identified in the original application). This will allow for timely adjustment of individual projects if necessary. Project managers will monitor and report on individual projects for progress and comp{iance with contract. B. A final evaluation of each project will be required to determine the e�ttent to which the project has been successful. Project success will be STAR Drafl Guidelines Page 23 February 25, 1998 1� /28' STAR Draft Guidelines February 25, 1998 measured against expected project outcomes and the overall objectives of the STAR Program. This final evaluation must be received before the final reimbursement request will be paid. II. Annual Report to the City Council and Mayor An annual STAR report should be presented each year and shoufd inc(ude: A. Progress report on all projects to date, their locat+ons, and costs. B. Fiscal analysis of overall program. C. Effectiveness in supporting priorities. D. Evaluation of the program process and suggested revisions. III. Annual Review of Priorities Priorities for the use of sales tax funds in our neighborhoods should be reviewed on an annual basis. STAR Board and City Staff shall conduct a review and forward any comments and recommendations to all interested parties. IV. Audits and Quality Control A. The City will establish a monitoring and control system which ensures that loan repayments are made under the terms of each project's agreements. 1. It will be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibility and ongoing program compliance. 2. Reports on revolving loan programs will be periodically provided to the funded entities to assist in their monitoring of their programs finances. B. Periodic external audits may be required. STAR Draft Guidelines Page 24 February 25, 1998 9�-iz � STAR Draft Guidelines February 25, 1998 APPENDIX: ACRONYMS AND DEFlNITIONS Acronyms CDBG Community Development Block Grant, a Federal grant to cities for community development activities that provide assistance primarily to low- and moderate- income persons. CIB Capital lmprovement Budget, the City's biannual budget for capital improvements. HOME Federal funds that assist development of low income housing. HRA Housing and Redevelopment Authority, the legal entity that undertakes redevelopment activities on behalf of the City (members are the City Council). PED Planning and Economic Development Dept., a department of City government, which administers the STAR program. RLO Revolving loan operator, an entity that operates a revolving loan program. RLP Revolving loan program, a program that gives out loans for housing or business improvements and uses loan repayments to make new loans. STAR Sales Tax Revitalization Program. TIF Tax increment financing, a mechanism whereby the City can capture the increased taxes generated by new development to help pay the costs (such as infrastructure improvements or soil clean-up) �ecessary for that development to occur. Definitions Administrative expenses - Costs for staff, office space, supplies, etc. necessary to run an organization. Adverse lending relationship - An entity or person has an adverse lending relationship with the Gity if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. A�rmative action - A City policy that requires a plan for recruitment of minority STAR Draft Guidelines Page 25 February 25, 1998 48 �ZS� STAR Draft Guidelines employees and the use of minority-owned businesses. February 25, 1998 Allocation goals - The percentages established by the STAR program for a specific distribution of STAR funds to loans, grants, small grants, and seed capital loans. Amortization schedule - A schedule for paying back a loan through installment payments. Annual report - The report that is done once a year on the Neighborhood STAR Program. Applicant - An entity applying for a loan and/or grant from the STAR program. Audit - An examination of an organization's records or accounts to ensure they are in compliance with financial and program standards. Borrower - A person or entity that takes out a loan. Capital improvement - A physical improvement of property that increases its value. Certificate of occupancy - A certificate issued by the City that indicates that a building has met all City requirements for legal occupancy of a specific use. City comprehensive plan - The set of plans and policies adopted by the City Gouncil to guide the growth and development of the City, including recommendations addressing areas such as land use, economic development, transportation, parks, and housing. Collateral - Property that can be assigned as security to ensure recovery of a loan, should a borrower default. Commitment letter - A letter informing an applicant of the City's intention to award STAR funds to an entity, subject to meeting certain stipulations and/or standards, and the signing of a contract with the City for use of the funds. Compliance meeting - A meeting held between City staff and entities that have been awarded STAR funds to discuss City requirements that must be met as a condition of City funding. Contract - A legal agreement between the City and the recipient of STAR funds, specifying the requirements that must be met in order for the recipient to receive STAR funds, including a scope of work. Credit Committee - A committee of staff from the Department of Planning and STAR Draft Guidelines Page 26 February 25, 1998 9�-�2 8 STAR Draft Guidelines February 25, 1998 Economic Development that reviews financial analyses of proposed loans and grants. The Credit Committee financiaf and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. Credit risk - An analysis of the probability that a loan will be repaid. Cultural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to projects that benefit the downtown cultural district). Deferred loan - A loan where repayment is delayed until some future time. For example, interest and principal on all STAR loans are deferred for one year from the date of the contract with the City. District council plan - An adopted plan for o�e of the City's seventeen planning districts; considered part of the City's Comprehensive Plan. Eminent domain - The authority of a government to take, or authorize the taking of, private property for public use. Entity - An organization that has been legally organized and established through the State of Minnesota (such as a company, non-profit organization, district council, etc.). Final evaluation - An evaluation required whenever a STAR funded project is completed to determine how successful the project has been. An evaluation form will be provided by the City. First Source - A City program that requires certain companies that have received City economic development assistance to work with PED to place St. Paul residents in new jobs created as a result of the assistance. Forgivable loan - A loan for which repayment is not required (becomes a grant) if certain conditions are met. Funding cycle - The STAR Program is on an annual funding cycle, which means that applications are accepted and funds are awarded once each year. Grant - An award of funds for a project or program which does not have to be paid back to the STAR Program. Grantee - An entity that has been awarded a STAR grant. Job creation - Refers to jobs that are pledged to be created as a result of the award of STAft funds. STAR Draft Guidelines Page 27 February 25, 1998 98 �2 � STAR Draft Guidelines February 25, 1998 Leasehold improvements - Improvements to properry held by a lease. Leverage - Money or other resources committed to a project as a result of the receipt of STAR funds. Little Davis-Bacon - City requirements related to paying prevailing wage rates for work on a City-funded project. Living wage - A level of wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money will be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss (non-repayment) for STAR loans awarded to operate revolving loan programs. Loan origination fee - A processing fee that is charged to the borrower by the entity making the loan. Match - Money or other resources that are pledged to a STAFt project or program along with STAR funds. The STAR Program requires a minimum $1 for $1 match of other resources with STAR funds. Minnesota Business Assistance (Corporate welfare) - Laws approved by the Minnesota State Legislature that require cities to document job creation that occurs as a result of the award of public economic development assistance funds. Neighborhood fund - The fund that holds the sales tax proceeds designated for distribution through the Neighborhood STAR Program. Neighborhood STAR Board - A board of St. Paul residents, appointed by the Mayor and City Counci(, that reviews applications and makes funding recommendations for the award of Neighborhood STAR funds. Neighborhood STAR Program - The City program that awards loans and grants for neighborhood improvement projects, which is funded with 50% of the proceeds of the City's half-cent sales tax. Operating assessment - An extra fee charged by the City to property owners to pay for the maintenance and operation of public improvements that are considered above the standard that has been established for the City as a whole. PILOT (Payment in lieu of taxes) - An agreement to make a payment of some type to the City for a specified period of time when a property will be removed from the tax rolls. STAR DraR Guidelines Page 28 February 25, 1998 9� �28� STAR Draft Guidelines February 25, 1998 Planning Commission - A standing City commission of St. Paul residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. Prevai{ing wage standard - A schedu{e of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a program, through which funds are passed through an organization to an end user, either as a loan or grant, using criteria defined by the organization and approved by the City. Project - A one-time capital improvement to a particular property. Project management - The activity of overseeing the development and completion of a funded project or program. Project proforma - A realistic projection of income and expenses for a typical year of operation, and a balance sheet that reflects the post-loan closing conditions. Proposal - A STAR application for a project or program. Recourse loan - A loan whereby the borrower is held financially fiable to repay the loan, according to agreed upon terms and conditions. Reimbursement - Payment from the City to a STAR-funded organization for capital improvement costs incurred for completion of a STAR-funded project or program. Relocation requirement - State and Local requirements related to paying the relocation costs of residents or businesses moved as a result of a City-funded projecUprogram. Revolving loan program - A program established with STAR funds, that makes loans to homeowners or businesses for physical improvements. Loan repayments are used to make new loans for the same purpose. Risk rating - An estimate of the likelihood that a loan will be repaid, based on an analysis of the applicant's repayment capacity, capital position (equity), and the City's collateral position and conditions of loan approval. Scope of services - A budget, time line, and description of the activities that will be pertormed in the implementation of a STAR-funded project or program. STAR Draft Guidelines Page 29 February 25, 1998 9� i2 �' STAR Draft Guidelines February 25, 1998 - - - .�iz_.i��.: Small area plan - A plan for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds available through the Neighborhood STAR Program that are set aside to be awarded in small grants of $5000 to $2o,0�0, using a streamlined application and selection process. Sources and uses of funds - A listing of where aIl the money that will be spent on a project is coming from, which must equal the listing of all the uses the money for the project will be put to. Status reports - Periodic reports made to the City on the progress of S7AR-funded projects or programs. Sub-accounting system - An accounting system set up to track second-tier loans and grants made by organizations to homeowners or businesses through a program funded with STAR funds. Sweat equity - Work that a property owner performs to complete a capital improvement on his/her own property. The value of this work may be used as a partial match for STAR funds. Underwriting standards - Credit requirements (including financial ratios) that must be met before a loan can be approved. Standards provide support for sound credit administration and provide guidance for objective and consistent credit decisions based on sound credit analysis, appropriate controls and loan conditions, proper assessment and management of risk, and appropriate and timely loan servicing. Vendor Outreach Program - A program established by the City to ensure that a certain percentage of goods and services purchased by the City or by City-funded entities is purchased from small, minority-owned or women-owned businesses. STAR Draft Guidelines Page 30 February 25, 1998 � ;� INTER-DEPARTMENTAL MEMORANDUM DATE: March 4, 1998 TO; Council President Bostrom and Counci�members , � r, .Y FROM: Marcia Moermond, Poliry Analyst %�✓ , �;�'�'� � , City of Saint Paul City Council Research Cer�ter Room 310 City Hall Saint Paul, MN 55102 q � - j'�Q 612 266-8570 bw RE: Today's Agenda Item #18: Sales Tag Revitalization (STAR) Prograzn Proposed Guideline Amendments This memo reviews the policy changes adopted by the Council at its February 18 policy session, as well as the remaining proposed changes to the Neighborhood STAR program guidelines. OIJ'TSTANDING POLICY ISSUES: Applications for STAR loans be accepted at any time throughout the year. Page 9 of February 25 draft. See second page of Bob Hammer's memo on `STAR Financial Information" providing policy options for making application review a monthly or quarterly process. The Council acted in December of 1996 to set aside $550,000 to be used in 1997 and 1998 as a revolving loan and grant pool for applicants with tight deadlines who would benefit through quicker access to STAR funds. The $376,700 in allocations thus far are as follows: Right Step Acaclemy: $24,200 encumbered, loan agreement not closed. Home Styles (Home Co.J: $50,000 encumbered, loan agreement not closed. Sibley Plaza: $55,000 encumbered, loan agreement not closed, Old K-Man Project at Snelling � Energy Park Dr.: $225,000 loan and $22,500 grant allocated by Council, no encumbrances to date, loan agreement not closed. Seed Capitai Fund to be eliminated, making new program allocation goals: 60% loans and 4D% grants. Pages iii, 4, 16, 18 and 30 of February 25 draft. Annual Priorities Statement. Page 2 of February 25 draft. POLICY DIRECTIONS GIVEN: Elimination of pre-application process. All completed proposals will be considered for funding. Pages 10, 11, 14, IS, 16 and 34 of February 9 draft. The provision in the pre-appiication process pertaining to making applications available for community review has been moved into the regular application �� STAR loans less than $50,000 will not require a 1:1 match. Pages u, 5 and 19 of February 9 drafc. � . Pages u and 10 of February 9 draft. Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 25 of February 9 draft. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File 2 q�-la�' ! � NEIGHBORHOOD �ALES TA X REVITALIZATION (STAR) PROGRAM rth Street, Saint Paul, Minnesota 55102, or V � and Economic Development, 25 West Fo� caii 266-STAR (266-7827). � � � STAR Program Overview f� . � The Neighborhood Sales Tax Revitalization (STAR) Program awards grants and loans for physical improvement projects in Saint Paul neighborhoods. Key features include: * Program funding: 50 percent of the proceeds of sales tax. -cent * Applications for }oans may be submitte a any time. �� * Funds are awarded annually through a competitive app ication process for small and large grants, an'� wi(I�e ongoing for oans. '' STAR funds must be matched on a'f : basis w� other resources for loan amounts over $50,000 and all other loans an qrants. * STAR funds must be spent expected life of at least 7 rs. " Eligible applicants located in or doing * * * Small g with that have an � , or non-profit entity involvement and support will for loans and 40% for grants. number of small grants will be awarded (awards of )• un mg recommendations are made to the Mayor and City Councii or oans exceeding $100,000 and ALL grarrts, by the 15 member STAR Board appointed by the Mayor. Loans $100,000 and under may be approved by the Director of PED, upon STAR Board recommendation. STAR Dreft Guidelines Page ii 01 /29/98 • �� .� � � ►.._J TABLE OF CONTENTS PART 1 - Program Description I. Program Purpose and Objectives II. 1998 Expectations ill. Strategic Use of Funds IV. Performance-Based Incentives V. Program Funding VI. General Policies � PART 2 - Eligibility I. Efigible Applicants 1f. Ineligible Applicants III. Eligible Areas IV. Eligible Activities V. Ineligible Activities PART 3 - Application I. Decision P If. Proposai lc III. Procedural IV. ,�,Applicatic� PART 4 I. II. I �1 • ; :.. . Page 1 ge 1 age 2 Page 3 Page 4 �age 5 �`"age 6 Page 6 Page 6 Page 6 Page 8 Page 10 Page 1 � Page 11 Page 11 Page 13 Page 13 Page 16 Page 17 � 5- Loans, ants,-;��af and Leverage Requirements I. Am t of Funds Ailowed Per Proposal riteria for Small Grants Page 18 � verage Requirements Page 19 � , �# . Operating a Revolving Loan Program (RLP) Page 21 IV. Loan Standards Page 23 V. Project Development and Implementation Page 26 STAR Draft Guidelines Page iii Ot/29/98 q�-�a� C� r1 u � PART 6- Review and Evaluation I. Project Evafuation Ii. Annual Report to the City Council and Mayor III. Annuai Review of Priorities IV. Audits and Quality Control APPENDIX: ACRONYMS AND DEFINITIONS For STAR guidelines or appiications cal! 26&STAR (782�. For o er (266-6693), Jill Hughes (26&6650) or Paul Mordorski (26&-6`�3). STAR Draft Guidelines Page iv Page 28 Page 28 Page 28 Page 28 30 � a i Staff.� Bob �ammer d � ;;� Ot/29/98 q�- ia� i . PART 1 - Program Description * Program Purpose and Objectives '` 1998 Expectations * Strategic Use of Funds * Performance-Based Incentives * Program Funding * Gene�al Policies I. Program Purpose and Objectives Saint Paui neighborhoods are one of the C' m safes tax proceeds represent an e�raordin in our neighborhoods. The sales tax procee funding sources, are to be allocated throug economic and community development pr cts ii These very flexibie City funds should pr ._ sig economic impact. STAR funds sh�� E and investments and shouid b other available City resourc , Desired Outcomes: The Neighborhood S A. Economic de ,�.1. enha� tax base �bTiie local businesses and provide attractive viable neighborhood commercial areas �g pollution clean up 11. 1. rportant s the nity to revita invest the City's most flexibie rogram for capital _ I neighborhoods. ositive long term a ,, provement efforts s�a e ineligible for use of projects that: stabilize housing stock and(or increase market 2. p ide new housing that meets an identified need in the market 3. ' prove pubiic infrastructure and private green space especially if e projects are linked to related residential or commercial improvements r and City Council Expectations for STAR Proposals n:: _:�: � r rrvi7i7cs STAR Dreft Guidelines Page 1 p��yg�gg q�- ia� � IJT_'�!n!1/_T_T_� I�[-nlm�ni-nw "More likel�o Fund in 1998" ° Projects and programs that: � 1. increase or maintain the tax e as 2. are high quality, market dri and e 3. are part of a City approv `= lan or� identified unmet need '�" 4. are the result of col 5. are�nart of a bro� __ � _ -- - _ — �._o ...:.:.:......:.:�-.._.:_�...,i;,iLa " __ _ '• __ __ ' _ ___ _ i .�. " _ _ " _ • _ _ _ _ " ' _ _ _ ' �:i G.: a i� i a. � i n�� i� i�� o � 7. � rhood stability. are targeted to address with appropriate stakeholders. oach to improving in 1" Y�"d fewer projects. program, needs that affect more than one lenders, or a clear indication that private `°'�' "°` is n ssible or appropriate. Ci the percentage of city funds in the project is the least with rms so as to maximize leverage of other resources. Strategic e of Funds ales t ds are a very important resource for St. Paul neighborhood ent, particularly since state and federal funding is declining. It is critical e City be strategic in allocating these funds to achieve the greatest impact. Applicants shouid consider the foliowing: � • The STAR Program is an effort to fund capital projects that could not be done through existing City programs, and programs that fill gaps not addressed by existing City programs. Potential applicants are encouraged to meet with City staff and other neighborhood organizations STAR Draft Guidelines Page 2 01/29198 �� .� u and groups to identify gaps, and explore opportunities to share capacity and expertise. Applicants shauid consider contracting with otfiers to provide technicai services (such as loan underwriting and credit analysis) necessary to run neighborhood-based and designed programs. STAR resources should not be used to develop or fund duplicated administrative capacity. � Applicants should look for opportunities to implement e neighborhood plans and strategies, such as small � propose improvements in conjunction wit other � improvements, such as residential stre ing. Community organizations are encour ed to pl r c development over a period of sever ars at, inc project funding can be guided by str rities for term improvement. IV. Pertormance-Based lncentives The STAR Program is designed with i� projects/programs. Key features i rates and pnncipal and interest r � me {ncentives are based on the tv of STR �� to rer� �f rafes or to e lower than market for the first year. � loans: "' `�"'"= te of up to 10% of the principal portion of the epayment amount as an incentive for repayment of �he Ci ided alI payments are made on time. Rebates will dit itional loan principal.: st ea � gs: Loans are deferred for 1 year from the date of ent with the City. This, for example, allows revoiving tors (RLO's) who begin to make sub-borrower loans m tely, to benefit by receiving payments from sub-borrowers to a year before the first city-loan payment is due. 1 �' u ,�j�'��ly��Fl\lf� \��f�1��1�\' _ • � •�� STAR Draft Guidetines Page 3 01 /29/98 i� . � � 3. Other Revofving toan Pronram (RLP) Incentives: a. Origination 4ee - Revolving Loan Operators (RLO) may collect from the sub-borrower, a ioan closing fee of $200 or 1'/z% of the principal amount of the loan, wfiichever is greater. This fee also covers any potential collect+on costs. b. Rate differential - Revolving Loan OQerators may request a loan from the STAR Program at a certain rate (example 5°!0) and propose to make loans to sub-borrowers a igher rate (example 8%). The RLO may keep t iffe e in interest rates. _ c. Grants used for loan pr s: Loan Operators may receive nt from ogram to � be used to operate a lo nterest pr e lo repayments will be hel an i st bearin �'he principal must continu ed to fund the g loan program. The RLO kee rest. l\ � L�� 1\ l� Yi il�l� l�l�� ly • � (50%} percent of the proceeds of the ha{f-cent sales tax, aiong with s corresponding interest earnings, are ded'+cated to investment in the neighborhoods (including the downtown residentia4 neighborhood and small businesses serving that residential population) of Saint Paul. � B. Available STAR funds for each funding cycle will include funds collected through June 30th, 1998. Succeeding cycies will include funds coAected from July 1 through June 30. Each cycle will be announced in December STAR Draft Guidelines Page 4 p��9/98 �� .� �J with an estimate of available funds. The estimated funds will be noted in the annual City budget as Neighborhood STAR program funds. C. Allocations 1. Sixty (60°10) percent of the neigfiborhood portion of sales tax proceeds shall be allocated to low interest loans. Repayments will recycle funds to the neighborhoods again and again, and wiii buiid a{ong-term, growth fund source for the future. 2. Forty (40%) percent of fhe availabte funds shait be aUocafed to direct grants. j ,_.: �,: «_ � :. � �. � ... , . ,:., L� VI. and businesses. Innovative pi A. in allocating funding for geographic equity of p� General Policies Proposals must be neighborhood-based p representation to strengthen Saint Paul ne and actual problems, needs and opportun program, or strategy that results in capital proposals may be generated by neighbort B. Up to 15% of < accommodate C. � The sam �� heC D. or oans exc matc e with � F 'AR f�ds may ied with n d and address ceived Is can be a project, ' Saint Paul. These rs, organizations, age 6, I., II., III.) City to provide used for multi year funding to be submitted to the CIB Committee in the same year. ng $50 ,000 and ALL grants, saies tax funds shatl be �r resources on at least a 1:1 basis. :d to be of insufficient quaiity or impact will not be funding, even if funds are available. In the nt that Commun'ity Development Block Grants (CDBG) funds are a d to the STAR Program, areas of the city that are generaliy c ered eligible for CDBG funds, should receive their fair share of G funds as well as their fair share of STAR funds. PART 2 - Eligibility � * Eligible Applicants " Ineiigible Applicants * Eligible Areas STAR Draft Guidelines Page 5 pt/2g/g8 qg- � a� � * Eligible Activities � Ineligibie Activities t. II A. Any public, private, or non-profit entities, which are located within or do business within the city of St. Paul, except as identified in II. below. B. City departments and quasi-governmental entities are eligible hen in partnership with or supported by an established an xperi � d neighborhood group. Etigible Appiicants C. Individual businesses are eligibte to a funds, provided the business is: 1. opening up a business in St. I; or, 2. expanding the space occupie 3. creating new jobs. (Programs serving individual eligible.) Ineligibie Applicants A. Churches and religious � B. C. D. �� E. III. EI in STAR projects are also departments. rams serving individual proposals under $50,000. limits of the City of Saint Paul. IV Eliglble ACt include any physicai components of strategies, programs, and/or project hich strengthen and/or improve the neighborhoods of Saint Paul. Capit provements have an expected life of seven or more years. of eligible activities are: � Political parties and Federal, state, Individual elig ovements to residentiai, commercial and industrial property uch as rehabilitation, construction or other capital improvements. Examples include: 1. Most fixed improvements including the construction or rehabilitation of walis, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air-conditioning, architectural change, energy and security improvements, handicapped accessibility, code requirements, etc. STAR Draft Guidehnes Page 6 01/29/98 q�- �a� � 2. The project must be in compliance with a41 legal requirements of the City, such as: � improvements. d. Prior to project implementation, all be obtained. Upon completi n of i applicant must have follo nd all applicable code, pe d lic Finally, the property m e prop have a current Certific f Oc a. The property must be appropriately zoned, meaning the property conforms to use under the City Zoning Ordinance. b. For new construction, properties must be on legai buildable lots. c. Prior to performing leasehold improvements, the tenant must obtain written permission from the building owner for the e. � applicable. � An applicant must have loan and be an � bank or the City. Funds will be rel receipt of docu tittle Davis- . followed a ool a elig ne sa rmits must m ts, the must meet, en nts. �� ins m ancy upo , if to repay if requesting a as determined by a dards). t basis upon > nses. �standards) must be B. Economic develo '�`nt eff such new housing, business development or ""sion,, . parkin velopment. The following are eligibie only w unde v, en a tial steps of a larger STAR -�`� capital pr ' at incl ntiai rehabilitation or '��-' flnstr - Ac sts including purchase options; emo ' ity rei d construction as it relates to a project; nce: isition of land or a building for clearance will only n aken when it is an initial step in a proposal which will N� C:� pital project; testing and soil remediation as part of a larger capital of developing parking facilities are eligible activities. If the g is to be privately owned, the STAR investment must be in the form of a loan, secured by a lien on the property. . Minor public improvements such as: trees and shrubs, benches, play equipment, beautification of public space, decorative fighting, etc. � particularly as they relate to a housing or economic development strategy. 1. Trees, shrubs, and lighting should promote safety as well as aesthetics. 2. The Program is not intended or normally sufficient to do major public improvements such as street paving, curb and gutter, sewer STAR Dreft Guidelines Page 7 p��pg�gg i� ., � and water. Major public improvements should be channeled through the city's CIB process. 3. When additional operation or maintenance costs result from the public improvemenfs, the STAR proposal must identify how this project area will privately pay for these costs. Requests for capital improvements that are defined by City policy as "above standard" will not be considered or reviewed unless accompanied by a legaily-binding and enforceable maintenance andior operation over the useful life � improvements proposed to be funded program. The most acceptable m thod operation of above-standard pub ' prc on the property taxes of those r iving 1 for and the improvements, though propos that co t pr n-pr x �' organizations to operate and ' tain ve-stan improvements will be conside nding upon (a 's judgement) the viability of the ' n and the enforceability of the legal agreement. � D. Direct project costs sp project. A minimum of construction costs for Definition: Direct out capitai project on the type of pr�i f� it7 of the capital m� r spent on hard e tho "" � are necessary to carry o comp ion. Examples are dependent being i�ilemented and may include: soil testing, environmental, legal, and inspection fees; � charges (must be in line with industry w_ �: per's " or project coordination fee that is appropriate to the d in line with industry standards; 5. of staff management that are clearly associated with th pletion of a capital project. 6. ons receiving the benefit of the projecUprogram are not igibie fo� developer's fee. (Examp/e: a business owner his/her business site.) h"cile Activities Any activity not of a capital (bricks and mortar) nature. � B. Planning or study activities. C. Use of STAR funds to develop a STAR proposal or to organize an entity to manage a STAR proposal. STAR Draft Guidelines Page 8 01/29/98 � �� .• r� LJ • E. F G. rrent City program such as the Houses to Homes Water Utility's Lead Pipe Replacement Program. are encouraged to coordinate or link proposed projects with � * * * D. Public service programs such as crime prevention, block nursing programs, child care, and similar efforts that do not result in direct physical improvements. These activities may be inciuded in your total project description/strategy, but they are not eligible for sales tax funding. They will be directed to other City programs, if possible, or private funding for these activities can be part of the project match. Refinancing existing debts, except when it results in job creation, or is part of a larger project. , Non-fixed improvements (Examp/e: fumiture, te/ephone systems). Working capital. H. General administrative expenses planning, development and admii maintenance costs. I. Costs accrued before 1 eligibie for sales tax fu J. Activities located out � K. Major public imp ��ei recreation cent ` tc. .�. L,��s�weat e ment ��:=;#R�;`'`� � =�„ _ : �tructi ver M. ithi the the management, and general are not repaving, sewer work, own labor and pertormance for t Paul Culturai District, as long as the sales tax is targeting that district. Application Procedure Decision Process Proposal Identification and Development Procedural Guidelines Application Contents STAR Draft Guidelines Page 9 Ot/29/98 �� . � � i. Decision Process A. Notification of funding availability. B. Applications for large loans are open all year, and applications #or grants are due approximately four to soc weeks after Orientation Workshop. C. D. E. F. G. � H. I. NOTE: T� Review of Small STAR Grant final a� by City Council approval. STAR Board, Planning Commission, final applications for large loans and Recommendations for funding subm Review by Mayor and City Council � and all grants. Final approval of funding Commitment letters be completed sen� Contracts followed all loan exceedi $100,000.00 and time line for actions to and time lines have been met. at the beginning of each funding cycle. I I. P ro`'�os� The ST lev is to im '- arly and a individuals A. COM �nti nd Development en s up front strategic thinking and planning at ali ' coli oration prior to the submission of applications. The ality of the applications qualitatively and technically. ipation of Councii, community groups, interested is expected in development of proposals. ITY GROUPS AND INDIVIDUALS INTERESTED IN STAR i- initiate program and project proposais addressing important iood and communiry issues. Indicate levei of comrrrunity Provide prioritized letters of recommendation rather than blanket for all proposals within community boundaries or service area. • B. CITY STAFF - Provide technical assistance to applicants, if requested, to help assure a complete and strong application. Proactively offer assistance and identify projects which might be good candidates for STAR funding. Use STAR as another funding source in conjunction with other STAR Draft Guidelines Page 10 o�iZy�98 �-�� 111. funding sources as a tool in accomplishing the City's goals. Procedural Guidelines A. A complete application must be submitted, on time, for a proposal to be considered during a funding cycle. B. City staff will make availabie for interested parties copies of the applications for comment and review. C. City staff will organize a Small Grant Program work p e beginning of each cycle to provide program applica ' n infor prospective applicants. Attendance at the orientati rksh ly recommended. � D. Appiications may not be changed or applicanYs responsibility to thorough submission. However, applicants m information to the STAR Board in thi may be asked to consider a modifie� Board during its decision-makin ° nce submi � "` - �„ -. the proposal d to provide additional or applicants sd by the STAR IV. �pplication nts - Large Loans and Grants All applicatio must be submitted on the STAR application form and contain the fo ing information, including but not limited to: 3 A d iption of the proposal, including: Neighborhood problems or needs that the proposal addresses. Documentation of the above problems or needs, such as demographic data, statistics, and district, city and neighborhood plans, priorities, strategies and policies. (Plans are available for review from the Saint Paul Planning Division, the Central Library and branch libraries as appropriate). 3. Detailed description of the proposal's activities or elements. 4. Neighborhood impact and projected results. Level of neighborhood support and participation. STAR Dreft Guidelines Page 11 Ot/29/98 � , / • • � One to three (3) letters of neighborhood support. Letters of support from a single organization or individual must be p�iOfiU2@d. example: If an oiganization sends letters of suppo�t for 5 proposals, fhey must indicate lst choice, 2nd, etc. Description of neighbofiood participation used in proposal development. C. Applicant's management experience and capability, including past experience with similar programs. A board membership list t be provided, if applicable. D. Requested amount and type(s) of Sales fun , loan). Terms must meet the STAR program guid and g � � E. F. G. H. Fuliy developed budget inciuding 1. Construction estimates. 2. Level and source of private c 3. Sources and uses statement 4. All required financiai informa' sources of private lender fi _ including annual balan . . retums; and other i Time line for project Map indicating For p ^:fii:' boundaries. t proforma, financial data, ents, and/or tax rlete program guidelines must be such as the following must be ose who will receive loan/grant? or grant committee, and what is its structure? er, types of expertise) be mortgage on the properry or a"due on sale" 4. 5. be a residency requirement? be your underwriting criteria? iestions as appropriate may be added to the application form. If osal is funded, the guidelines must be approved as part of the with the Ciry. Conflict-of-interest policy of entity. � J. Evidence of site control at the time of application. Evidence the applicant has legal authority to carry out the project on the property. K. For proposals that would remove property from the tax rolls, a description STAR Draft Guidelines Page 12 o�iZ9iy8 I� _ � � of a proposed PILOT (payment in lieu of taxes) that wili replace the lost property tax revenue. L. if above-standard public improvements are proposed for funding, a description of the legally binding and enforceable pian for operating and maintaining them over the useful life of the improvements. M. Evaluation criteria, including expeeted outcomes and a they will measured. N. Application fee: A non-refundable appli fe accompany application forms. A fee 0 wili be STAR Grant Program. ..��.:..�_.."'�' .=r"5":!n•:7 �� O. Appiications which are incomptete after the Applications must be f� completed. � ineligible for further consideration. be sufficiently developed to allow fo ' the proposal to the applicant. T development work is complete„ J E Applicant�hould fo PART . II. eighboi� `� Selection * Evaluatio * � :�__:_ � • - _. . the of how be retumed. : i�'omplete will be te or does not appear to STAR Board may return provided further � implement a project is limited. be spelled out in the STAR contract, of Applications Special Consideration = hborhood Sales Tax Revitalization (STAR) Board inted by the Mayor and approved by the City Councii. The 15 member board serves as the formal review body for proposals requesting the neighborhood portion of sales tax funds. The Board recommends proposals for funding to the Mayor and City Council. SeleCtion PrOCeSS - the selection process for grants will be competitive and the Board will consider the quality of the proposals. The number of applicants to may STAR Dreft Gwdelines Page 13 o��9i98 �, . • � l.J be funded is dependent on the size and quality of the proposais and the availability of funding. � � U :�_._.._.��=,a � A. Applications, upon staff. Applications� 1. Be accep�id staff proj `� n 3r� Add��nfi and summarized by by the AR Board. An estimate of City rt c_ wiil be added to the proposai. rovided to the Board by the a. � D Credit Committee will review the loan applications esponsibility, risk evaluation and appropriateness �= o tes, terms and conditions, and provide this info �'� n to the STAR Board to assist them in making ommendations to the Mayor and City Council. b- Planning Commission will review proposals for ompliance with the City's Comprehensive Plan and Capitai Allocation Policy. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. c. Information on all proposals will be forwarded to the CIB committee for informational purposes to aliow for coordinated decision making and for coordination, comment, and review. Comments will be forwarded to the STAR Board, Mayor and City Council within the established time line. d. If other entities want to review and make comments on STAR Draft Guidelines Page 14 ovzsisa l� .! � applications, excluding financial attachments, they are encouraged to submit these comments in writing to the STAR Board within the time frame of board action. The applications, excluding financial attachments, will be available for review in central locations such as: the Saint Paul Department of Planning and Economic Development (1400 City Hall Annex), the Central Library and at several branch libraries, as appropriate. 2. Be rejected by the STAR Board• a. Applications that are i plete date wi be ineligibie for furth onside on. w = b. Applications that are r ded remature � developed will be retur applicant. � _T_�f_nR_TJ_' _T_<T��TL' 1�](�I�l�l�l�t��l��l�ll�\ � j � STAR Draft Guidelines Page 15 ovzsisa /• • �^: ..,.......�,....:,��.,:.: __ ' _ ' __ _'" ____ ___ ' __ ', r_' B. The STAR Board will strive to ident the context of the STAR Program g C. The STAR Board will also consider Commission comments, and cre ' funding recommendations to � D. The Mayor will review t ec Committee and Plann' Cor recommendations _ e City,. E. The City C resolution, a eir bu� � tll. Eva c� of eligibili � Propo Sales T B. Proaos possible Planning and make e STAR Board, CIB , and forward his 's recommendations and, by AR project proposals and approve 3: Proposals will be reviewed for the foliowing criteria. City Council priorities for the use of the Neighborhood the minimum leveraging ratio. (See "Leverage", Part 5.11) is an eligible program activity. (See "Eligible and Ineligible sections - Part 2.IV and � . Proposal is not a duplication of an existing private or public program or replacement funding for an existing program. Funding can be provided for � the expansion of an existing program. E. Proposal is not in conflict with any city comprehensive plan element, small STAR Draft Guidelines Page 16 01/29/98 • �� . � � • IV F G. .: 1 0 Special Consideration: Proposals consideration during the selecti � A. Proposal has the foilowing: 1. a positive impact on tax 2. a positive impact on 3. a positive impact side 4. a positive impac job c ti for public fun� pent o b-c area plan, capital allocation policy or adopted City ordinances and policies. Proposal is financially feasible_ Requested STAR funds together with other project resources are adequate to complete the proposed project. Managing organization has the capability to successfully manage and implement the project or program. Proposal effectively addresses a previous identif erwise clearly documented neighborhood need or go . Proposai was developed with and is neighborhood based. to Note: To avoid number of iQbs. more favorable �ds; and/or, requires accountability �-co ng of jo reation, please take the total in li ies, and pro-rate the number of :e AR dollars in the project. broad strategy for neighborhood C. � ci tiy concentrated within an identified geographic area visual or economic impact. or feasibility analysis indicates a high probability of N� orhood support is documented—an appropriate mix of residents, erty owners and/or business people relevant to the project were ncluded in the planning, development and implementation of the proposal. � F. Proposai includes direct coordination with other city, private, or non-profit programs and projects that results in a more efficient and strategic use of funds. STAR Dreft Guidelines Page 17 o�izy�98 �� _! n u � U G H. J. Proposal is recommended in a District Council Comprehensive Pian, in an adopted smal are� similar neighborhood planning process. K. Proposal is in reaction to, or anticipa of, a condemnation for eminent domain en improvements. PART 5- Loans, Grants, Seed Requirements * Amoant of Funds ANowe Small Grant * Leverage * Operating a I * Loan Standa * P��iect De�� I. Proposal leverages additional funds or resources which exceed the required match. Percentage of the match that is direct cash or capital investment is high. All administrative expenses are funded through other sources. ►c� no � a (RLP) another Leverage for ic Per Proposal and Criteria for Small toan/grant request amounts for the regular mum for the regular program is greater than $20,000. vi ual business requests must be for $50,000 or more. (See C for more details.) Request for funds of $20,000 or less will to the Small STAR Grant program. � all STAR Grant Program - requests for amounts of $20,000 or less will be in the form of a grant. The application and selection process will be reduced. Funding approvai may be concluded several months before the regular STAR program process is completed. 1. Minimum grant for the Small STAR Grant Program is $5,000. 2. Maximum grant for the Small STAR Grant Program is $20,000. STAR Draft Guidelines Page 18 0'I /29l98 `j • � � 3. An abbreviated final application form will be used 4. It is expected that within three (3) months of a project's selection and approvai, a standardized contract will be signed with the City. I I A. A minimum match of one {$1) privafe doilar for every one {$1}�TAR doilar is required for loans that exceed $50,400.00 and all grants. Leverage Requirements B. County, Private, State and Federal fun be C. Priority will be given to projects matc with such as CDBG, TIF, CIB, and HRA f ca unless the City funds are loans. Ci considered an eligible match and forgi D. Applicants are encouraged to expenses with outside private donations, etc. and to use tl� � administration and marke ' � funded with non-STAR ars operating funds of t orga� E. Matching fu program in; F i.e., t management grants, cash �h. Staff e �rogram must be as a match. General an eligible match. to completing the project or may include: resources such as private expenditures for � idential physical improvements, contributions or within the neighborhood, foundation and and local lender commitments or operating nts estimated over the useful life of the improvements. 2. I ontributions can include: in-kind services from r s and businesses such as personnel, professional services, e space, project suppiies, volunteer labor, and sweat equity for ysical improvements. The value of sweat equity and/or volunteer may not exceed 30% of the total match. � � �ieligibie matching contributions include: 1. Volunteer meeting time. 2. In-kind service donations from STAR appiicants such as aiready existing office space, phone service, etc. In-kind donations from parties other than the applicant are eligible. 3. Volunteer labor and sweat equity over 30% of required match. STAR Draft Guitlelines Page 19 ; be used � which will b id are loan are not eligible. Ot/29/98 ��a� � (Higher sweat equity matches will be considered for the Small Grant program.) 4. General operating expenses. 5. Any donation not direcUy related to the STAR project 6. Any forgivable loans and City CDBG, TIF, CIB and HRA grants. 7. Any unrelated improvements in the general area of the project. 8. Any improvements that will be made regardless of STAR fund approval. 9. Any improvements made prior to application. H. Operating Assessments: If STAR operating assessment, no funding of the matching operating assessn Under no circumstances will any The STAR Board may, at their matching contributions on a cz � K. Exceptions to the match Board in highly unusual, an urgent need or disa�te L. When interim fin �is considered mat d whe �� exampie: r a �, n a hou� ��..,•..�.�H��. �,.-,.,.��..�.�.,. � with STAR funds. approval of other by the STAR I is in response to �', the gr t portion of the project will be vate s replace the loan amount. For ,000; appraised value after rehab sidy of $30,000. The STAR program and interim construction financing of dollars of $60,000 are repaid to the STAR rty, and is considered a match to the $30,000 � � STAR Draft Gwdelines Page 20 o�nsiea � � � � � l ��1�1�1��f��f��l�l��1�1��wl��l!t_l�l��l\�l�y��1�t�Y�(��'�/1�[�I�l�lf� � [��11�1��t��l�l�� ' • • • . • • _ _ _ " _ _ ' _ _ � _ _ _ _ � _ _ _ ' ' ' ' _ � � Revolving Loan Program: App{ic� program for funds to operate a revc STAR funds to be recycled for 3 or contract with the city. 1. The City and the STAR loan the recipient to operate a re� 2. The STAR loan recioient tF (RLO)—makes capital i 3. Description of term sent to a servicin ncy heid in an intere earin i principal, whic� ' ust b se to the RLO ' ditio sut used by t�� O a �eded 1: as pai to G! STAR Draft Guidelines . "� g 4 t�, • � ..�i'u.t�.r �- a contract authorizing r lo ayments may be . The payments are ed for the RLO. The if improvements, is available foans. Tfie in#erest may be there is no charge of interest or b. and 3: monthly interest and/or principal payments STAR foan is paid to the City during the 2nd and 3r rincipa{ payments to the city may be deferred as gree pon by the RLO and City staff. r 4: principal and interest payments for the RLO's STAR • n are based on the amortization schedule for the entire TAR loan amount, as listed in the loan agreement with the City. Payments are due on a monthly basis firom year 4 until the ioan is repaid to the City. Applicants may request a longer period of time to revolve the STAR funds. The City will review the condition of the f2L0's files, sub- borrower loans, and repayment history prior to approval of an additional term. Risky loans: If a RLO desires to administer a loan psogram of moderate risk or a mix of high and low risk loans, an application Page 21 01/29198 q�- ia� � shouid be considered for a STAR grant or a combination Ioanlgrant to help the RLO mitigate the risk of non-payment. Both grant and foan funds can be loaned to sub-borrowers through the revolving loan program (RLP). The grant funds may be used to provide a cushion against default of sub-borrowers. If a RLO desires to administer a loan program where repaymen ability of the borrower is highly questionable or doubtF en an application should be made for a STAR gran�, ��_,�+.+�...� ��f�l�]-S-S�T �l�ll>\LS _ _ " _ _ _ _ _ _ a _ _ _ _ _ _ _ __ _ _ _ _ _ •. __'_' ' ' _ _' � '_ ' " __ '_ ___'" ' _'__ ' _ "'_ _' _ _ '" "'__ ' __ � '_ _ _ � STAR Draft Guidelines Page 22 ov29iy8 !f , � -- - ---- - -- - - --- - - -- - - � Loan Stan dS (The financial incentive to encourage repayment of STAR foans are lis in Part 1, IV, on Page 2.) he goal e STAR ioan program is to earn 5°lo interest over iime. However, may propose rates and terms that best suit their project. A. {nterest rates and terms wiA be proposed by applicants. Rates and � terms may be modified after financial analysis af the appiicanYs request by the PED Credit Committee. Results of that analys+s are foswarded to the STAR Board, which makes �ecommendations for City Council action. STAR Draft Guidelines Page 23 olnsrsa ��- �a� i B. Recourse loans: a. All loans are recourse to the end-borrower. b. Recourse is not to board members, as defined in Minnesota Statutes. c. Recourse is not to any restricted funds of an organization. d. The City wi(I be listed on conditiona( morkgages and conditional guarantees to be signed by the sub-borrawer and the RLO. This provides some protection f xpayer dollars in the event that the Rt0 aoes�►ut of iness. . ia a.ii.�:i.��:rt��i�ia��d�s�a��i:1-�iw � �: a loan is in default when more than 10°l0 of the amount due to y is delinquent. On projects: the following action wifl be taken: a. City staff works with the borrower on a correction plan or a work-out pian for the STAR loan; b. Should the above-mentioned attempts to settle the account fail, the City proceeds with the foreclosure process a�d collection of the borrower's STAR loan. STAR Draft Guidelines Page 24 Ot/29/98 r. _ � � c. The borrower's assets are assigned to the City. 2. On Revolving Loan Programs: the foliowing action will be taken: a. The RLO proceeds with steps to collect delinquent sub- borrower loans, such as: 3. � . (1) coliection endeavors; (2) workout pians; (3) foreclosure procedures Other remedies for default and/or poor Qe a. The entity must demonstrate how the the default have been remedied: sta# experience, callaborat+on b. The entity may be disqu program. from �that led to staff d lender, et �,in the ST/� D. City origination and servicing fees 1. Individual payments for single revoiving loan program (RLP) City. Sub-borrower loans init� will be originated and cio operator (RLO). 2. Servicing fees. a. Loans andx ants o ir single pr�cts) w e i of th R a nt, b b. Th _ s se ina aaE all payments for rocessed through the :d th • lving loan programs the Re � n Program the City (programs or >ing fee equal ta 1'/z% � any disbursements. will charge a fee per loan nonth�y payment may be assessed 15 days delinquent. d. er parry assumes the mortgage, a 1'/2°lo assumption outstanding balance will be charged (assumption w� requent{y and must be approved by the City). c. - gram portfoiio: fn order to address loan needs which c e met through standard financia( institution lending p grams, the STAR Program is alfowed up to a 20% loss rate. e City's risk rating system will be used to help assure that the rogram operates within this range. Loan toss percentage - Revolving Loan Programs: Revoiving Loan Operators will sign an agreement with the City for the entire amount of the STAR loan. RLO's will be considered to be in default of the loan when until the delinquency reaches 10% of the principa! payments. H. Risk rating: All loans witl be risk-rated, utilizing basic fundamentals of STAR Draft Guidelines Page 25 ov29iye /� _� � �� sound credit. These fiundamentals include: an evaluation of the borrower's overall capita! position after the loan is closed; the repayment capacity; the City's collateral position; and the conditions of loan approvai/servicing. Additionally, considerabie weight may be given to total performance on previous or existing loans, and the borrower's record with other creditors as indicated by the account officer's credit investigation. The foilowing categories are used to assign a risk rating: Risk Ratina ACCEPTABLE SUBSTANDARD DOU6TFUL LOSS � A portfolio rating no {ower than a� maintain the 20% ioan ioss levei a nonrecourse loans would drop the requirement, these loans are not a In most instances, organizatiot� shouid apply to the grant pso�,� Because # ( rating is nece � '°° o � STAR program. Since elow the 20% foan program. urse loan the specific quality of individual � foan program, certain standards be set to obtain a particular risk rating. Groups that �anderwriting standards wil{ receive a better risk �RLP) finai applications shouid be �iled and quantifiable underwriting sta�dards. by VI. � ct Dev nt and Implementation Upon s n by the City Council, the STAR project appiicant wifi: 1. eive a letter of commitment which specifies a period of time ring which the applicant must refine its projeet or program, secure its private match, meet other requirements as specified in the letter of commitment and enter into a contract agreement with the City for the use of the STAR funds. 2. The approved applicant wili have 6 months from the date of City Council approval to enter in to a City STAf2 agreement. Failure to execute an agreement will result in a canceilation of the City commitment. STAR Dreft Guidelines Page 26 01/29/98 t� �, � � B. implementation of the contract 1"he contract will be entered into between the City of St. Paul and the se{ected applicant and must contain: 1. A Scope of Services to be performed by aif parties; C 2. A private match section; 3. A budget section outlining all funding sources; 4. An implementation time iine; 5. Appropriate Iiability insurance which insures the City 6. Conflict-of interest statements; and 7. Adherence to Federal, State and L cal reg Poficies pertaining to the use of f suc standards, relocation requirem , aifirma ' vendor programs, the First So e pi welfare requirements. The n of commercial) determines whic Staff wifl hold a compliance me , contract to identify regulations The contract will be signed in Sales 7ax F 1. Sa{es Paul; applicabie. ng wage s apply. - �, to impiementation of the �project activity. provided on a reimbursement d pay , made upan completion of the project of the ect report and evaluation. At the time of ail activities contained in the agreement or upon agreement, any remaining project fund balances he STAR Fund. 3. ogra � ch as a revolving loan fund, is established by the using grant doliars, repayments accrue to the applicant f the program for which the grant was approved. If ving program is established by an applicant using loan ars, the loan must be repaid in full. Any excess funds accrue to applicant's account and the program operator is responsible for andling delinquencies of loans they have originated. As an incentive for fiscal responsibifity, a percentage of the principal portion of City loan repayments 10°!o will be credited to the borrower annually. The remaining 90% is retumed to the City's Sales Tax Fund for reinvestment in capital projects. i D. Progress: Projects are expeeted to be compieted within a maximum two- year time frame as approved by the City Council. Proposals are setected STAR nraR Guitlelines Page 27 01/29/98 �i - � � � based on certain criteria and may not be significantly changed during project impiementation. PART 6- Review and Evatuation * Pra}ect Evaluation * Annual Report to the City Councii and Mayor * Annual Review of Priorities * Audits and Quality Control � I. Project Evaluation A. Status reports will be generated for ongoing monitoring process. The re� status of match commitments, and pr project outcomes (as identified in the for timefy adjustment of individual p wiN monitor and report on individual� with contract. 6. A final evaluation of to which the project measured against e� the STAR Progra finai reimburse {I. � to date, their locations, and costs. program. supporting priorities. � �T meeting e oted ition). This wil! allow ary. Project managers s and compliance o determine the extent ct success wiN be and the overall objectives of must be received before the f and Mayor �d each year and shouid include: of the program process and suggested revisions. eview of Priorities for the use of safes tax funds in our neighborhoods should be reviewed n annuai basis. STRR Board and City StafF shall conduct a review and forward any comments and recommendatians to ail interested parties. ! lV. Audits and Quatity Control A. The City will establish a monitoring and contro4 system which ensures that STAR Draft Guidelines Page 28 Ot/29/98 a�� a� i loan repayments are made under the terms of each projecYs agreements. 1. It wiil be the responsibility of funded entities to provide all necessary documentation, as determined by the City, for purposes of determining program eligibifity and ongoing program compliance. 2. Reports on revoiving Ioan programs will be periodically provided to the funded entities to assist +n their monitoring of their programs finances. � �� L�J STAR Draft Guidelines Page 29 ov2sisa • j� .� n Acronyms APPENDIX: ACRONYMS AND DEFINITIONS CDBG Community Development Biock Grant, a Federai grant to cities for community devefopment activities that provide assistance primarily to low- an moderate- income persons. , CIB Capital Improvesnent Budget, the City's improvements. HOME Federal funds that assist development of HRA PED RLO � (2LP Housing and Redevelopment Authority, t redevelopment activities on behalf of the Planning and Economic Development which administers the STAR proqr Revolving loan operator, an Revolving loan business im�rc STAR Sales Tax - ... � that unde �� '�� are the City Councii). City government, loan program. �ans for housing or to make new loans. TIF ��"�: _ eme , a me �" '�m whereby the City can capture the "rr�� taxes �� ,, by new development to help pay the costs (such as �r� �;t� inf , y impr r soil clean-up) necessary for that development to oc "' _ - Costs for staff, o�ce space, suppiies, etc. necessary to run �,�i��, "° d� retationship - An entity or person has an adverse lending re ith the City if the entity or person has defaulted on a City loan, is behind in loan payments, or has a current or past lawsuit against the City. � Affirmative action - A City policy that requires a plan for recruitment of minority employees and the use of minority-owned businesses. STAR Draft Guidelines Page 30 Oti29i98 �, .. �� Ailocation goals - The percentages established by the STAR program for a specific distribution of STAR funds ta loans, grants, smafl grants, and seed capitaf loans. Amortization schedule - A schedule for payi�g back a loan fhrough instaflment payments. Annua4 report - 7he report that is done once a year on the Neighborhood STRR Program. Applicant - An entiiy appfying for a loan and/or grant Audit - An examination of an organization's record compliance with financial and program standards. Borrower - A person or entity that takes out a loa Capitai improvement - A physical improvement o Certificate of occupancy - A certificate issue E building has met all City reguirements tor I, � City comprehensive plan - The set lan to guide the growth and developme of the addressing areas such as land �cono� housing. Collaterai �roperty shouid ` er de Commitmey' � STAR funds t :� the signing Com 1s�ance meetinc aw d STAR funds C� nding. _ _ ct - A lea the are increases its value. City � ncv of �s that a use. by the City Council transportation, parks, and to ensure recovery of a loan, A le ' g an applicant of the City's intention to award ', sub� eting certain stipulations and/or standards, and ' h th for use of the funds. �g held between City staff and entities that have been City requirements that must be met as a condition of it between the City and the recipient of STAR funds, that must be met in order for the recipient to receive STAR a scope of work. Credit Committee - A committee of staff from the Department of Pianning and � Economic Development that reviews financial analyses of proposed foans and grants. The Credit Committee financial and credit information to the Neighborhood STAR Board to aid in the development of funding recommendations. STAR Draft Guidelines Page 31 p��g�gg ��a� � � Credit risk - An analysis of the probability that a loan will be repaid. Cuitural District - A defined area of the downtown within which the Cultural STAR Program is targeted (Cultural STAR is a companion program that targets sales tax funds to pro}eets that benefit the downtown culturaf district). Defe�red toan - A loan where repayment is delayed unti4 some future time. For exampfe, interest and principai on ail STAR ioans are defierred fior one ye m the date of the contract with the City. � District council plan - An adopted plan for one of districts; considered part of the City's Comprehensi Eminent domain - The authority of a private property for public use. Entity - An organization that has been IegaAy State of Minnesota (such as a company, non- Final evaluation - An evaluation compieted to determine how succ be provided by the City. First Source - A City program economic development assist< jobs created as a resuit of th Forgiva ` ; �' n - A I certain`��"" `"--� ` are Funding cyc TAR application nd Gran n award of to t_ TAR Proaram. ST i through the councif, etc.). �d project is evaluation form will that have received Ciry place St. Paui residents in new not required (becomes a grant) if � on an annuaf funding cycie, which means that are awarded once each year. project or program which does not have to be paid back - An entity t has been awarded a STAR grant. to jobs that are pledged to be created as a resuft of the award of Leasehoid improvements - Improvements to property heid by a lease. � Leverage - Money or other resources committed to a project as a resuft of the receipt of STAR funds. STAR Dreft Guidefines Page 32 01/29/98 , ♦ • • � � Little Davis-Bacon - City requicements refated to paying prevailing wage rates fior work on a City-funded project. Living wage - A ievel ofi wages that is sufficient to support a family household. Loan - STAR funds that are awarded with the understanding that the money wifl be repaid to the STAR Program. Loan loss ratio - A defined percentage of acceptable loss loans awarded to operate revolving loan programs. - Loan origination fee - A processing fee that is making the loan. Match - Money or other resources that are pledgE with STAR funds. The STAR Program requires a resources with STAR funds. Minnesota Business Assistance �Cor� Minnesota State Legis{ature that require a result of the award of public economi� Neighborhood fund - The fund distribution through the Neighbo Neighborhood STAR and City C�,�ncil, that award of,�e'i�iborhoo City's for fot STAR �� ': r � ,�� > ' ' -� � = -� " �� r� � - . . - . . � �-�E�� _ . . �. . . . - d by the that occurs as designated for dents, appointed by the Mayor funding recommendations for the City program that awards loans and grants for thich is funded with 50% of the proceeds of the �g assessm ra fee charged by the City to property owners to pay maintenance a ration of public improvements that are considered above ndard that has en established for the City as a whole. �u of taxes) - An agreement to make a payment of some type to period of time when a property wiii be removed from the tax rolls. � Plarfri` ommission - A standing City commission of St. Paui residents appointed by the Mayor and City Council, charged with making recommendations regarding planning for the City's redevelopment and improvement. STAR Dreft Guidelines Page 33 Q�/2g/gg `t� ` ��' � � Prevailing wage standard - A schedule of wages that has been defined as fair for construction workers. Program - Applicants may apply for STAR funds to create a pro , t gh which funds are passed tfirough an organization to an end us r, eithe n or grant, using criteria defined by the organization and approv the Project - A one-time capital improvement to a Project management - The activity of funded project or program. Project proforma - A realistic projection of operation, and a balance sheet that reflects � . a ,g9x�t-� �• • _ a typical year of Proposal - A STAR appiication for a Recourse loan - A loan whereby loan, according to agreed upon� "" and the C' a liable to repay the Reimbursement - Payment improveme�t costs incur relocation�"" " �,. � project/progr" Revolv� oan pr to ho . " wners or' to , e new loans �-funded organization ior capital 'AR-funded project or program. nd Local requirements related to paying the � sses moved as a resuft of a City-funded �gram established with STAR funds, that makes loans r physicai improvements. Loan repayments are used purpose. ing - An es � ate of the likelihood that a loan will be repaid, based on an of the a anYs repayment capacity, capital position (equity), and the City's nd conditions of loan approvai. Scoj�c"f�services - A budget, time line, and description of the activities that will be performed in the impiementation of a STAR-funded project or program. � STAR �raR Guidelfnes Page 34 p�Mgigg ��- la� Smalt area p4an - A p{an for the redevelopment or improvement of a defined geographic area within the City. Small area plans are adopted by the City Council and are considered part of the City's Comprehensive Plan. Small grant program - Ten percent of the grant funds Neighborhood STAR Program that are set aside to b to $20,000, using a streamlined application and se1 Sources and uses of funds - A listing of where project is coming from, which must equal the list project will be put to. Status reports - Periodic reports made to tfie projects or programs. � Sub-accounting system - An a� � grants made by organizations to with STAR funds. Sweat equity - Work that a pr on his/her own property. Th STAR fund�, _ met befoi administr on sound and mar� � Outreach percentage is purchase . of of y that wi uses the STAR-funded md-tierloans and a program funded �o complete a capital improvement be used as a partial match for requirements (including financial ratios) that must be be Standards provide support for sound credit ide g r objective and consistent credit decisions based pro controls and loan conditions, proper assessment appropriate and timely loan servicing. �- A program established by the City to ensure that a is and services purchased by the City or by City-funded small, minority-owned or women-owned businesses. STAR Otaft Guidelines Page 35 ovzersa q� - �as Re: Feedback on the 1998 Star Board Recommendations February 18, 1998 The listing of six recommendations are more in line with the actual capacities of many communities and proposed projects. My concern lies with the chain of command of loans of $100,000 or less being approved by the Director of PED. Doesn`t the City Council currently have some control concerning the recommendations made by the STAR Board? Why would the balance that the City Council provides be eliminated and left to the discretion of the Director of PED? How is the Mayor involved in the selection process? Additional comments: Community feedback that I have gotten from my community is that there appears (rightfully or not) to be partisan politics at work in the selection process. Should a community be penalized because they are not as active and perhaps unable to pursue the funding that is available? Could better outreach and/or more targeted help be given to those neighborhoods who demonstrate a need for assistance? Neighborhoods often feel pitted against each other for the limited funding. Is there a way that grant and loan money could be equally distributed between all of the District Councils? If so, the amount could be allowed to carry over for use for not more than three years whereby it could then go back into the general pool for distribution. As it now stands, those communities most able to write the best proposals get the money. In the local communities, there is often competition for the limited monies available. It would also be helpful if all STAR proposals go through the District Council process so that the best overall proposals for each community could go forward. This method would be an asset in community building rather than fostering the current climate of competition. Is there a method for "borderline" projects so that those communities who share a border could share their monies as well? All loan packages should be forwarded with the input (and/or approval) of each District Council. Urilizing District Councils in this way would incorporate a broader community view, and again, warking in tandem with other community non-profit organizations helps build community. Are all current applicarions chosen only on merit? All loan packages should be based on sound business practices should reflect industry standards and math formulas that have no basis in race, gender, age, etc. When the package is biind, the most sound proposals will succeed. Submitted by Carol M. Neumann 694 Oakdale Avenue St. Paul, MN 55107 � i• .• OL`TLiNE OF STATEMENT OF PAUL GILLTLAND, CHAIR OF T_HE CAPSTAL IPfPkOV'EiiENT BUBGET CQMMTTTEE, TO THE ST. PAUL CI'LY COUNCI� POLICY SES3ION OI3 "5TAR". FEBRUARY 18, 1998 W�AT ISSUES MOST NEED TO BE ADDRESSED AS kiE SEEK TO IMPROVE 'tHE PROCESS FOR REVIEFf AND t3SE OF THF' PROCEEDS OF TI�E SALES TAX? 1. NEED TO FOLLOW "PYRAMID" FUNDING STRATEGY AND THRERF'ORE NEED TO WORK TOWARD A"UNZFZED" REVIEW PROCESS. Once a project is agreed upon, the most restrictive funding should always be used first, the 2east restrictive last. Blending of �unding sources maximizes the opportunity to complete a project as intended rather than be baund by regulations. The addition of the 5ales Tax as a funding source, with its minimal "strings" (capital projects) should enhance this mix of sources. To date, due to our own internal complication and zeal for regulation, STAR has nat reaiized this potential. Due to its sepa- rate process, there hes been little opportunity to view STAFt together with CIB and CDHG as part o£ a"pyramid" oi €und sources. 2. THE ISSUE IS NOT THE STAR BOARD OR THE FUIdDING SOL312CE IT'SELF, BUT PED "iNTERNALIZATIUN" OF FUIYDING ALLOCATTON I1V GENERAL. 5ome of what is perceived to be happening with STAR (too much PED control) has adready nappened with CD3G and HOI�E funds uncier a process called "Capitol City Development Program (CCDP)" Part of the uni£ication of a review process for housing and economic development funding invoives cztizen review and "opening up" (or elimination) of CCDP. tJniess this question is resolved before 3anuary of 1499, we will be facefl witke three tracks far neighborhood housing and economic development fun- ding; STAR, CCDP and the regular CIBjCDBG two-year cycie. 3. I3EED TO RETURN TO THE "STRATEGIC" GOAL OF STAR. One of the ironies of the STAR process is how quiclky the "stategic" emphasis has disappeared. 8everal projects which were clearly identi£ied in adop- ted neighborhood plans and strategies but were deemed as multi-year or possibly nat ready to proceed immediately were screened out in the pre-agp staqe. In addition, several projects could not proceed be- eause the grant portion was not funded, even though the laan partion was, pr the issue of loan recourse surfaced. This attests to the inflexibility and short-sightednass of the STAR process. 4. WHEN THE REVTEWJFUi3DIi�tG PROCE35 IS VERTICAL, CO23TR01:. IS CENTRALIZED. One of the main differences between the CIB and STAR review process is the relationship between departments, support staff and the citizen review body. STAR is entirely vertical, with PEII drafting the guidelies, staffing the committee, rating the projects, negotiating contracts, handiing reimbursements and then evaluating the programs. i�ith CIB, the Budyet Uffice staffs the pro�ess, while departments staff projects. Neighborhoods relate to both, but for dif£erent reasons. Tne separation of roles nas been a positive means af preventing centralized control and lack of citizen access. STATEMEIdT Or PAUL GILLILAND FEBRUARY 18, 1998 PA�E 2 5. AS LONG AS PED IS THE "SOURCE," LOANS WILL BE "PED" LOANS. Aside from the controversial issue o£ the ioan/grant mix is the question of the "use" of ioan tunds. Many neighbrohoods, through CDCs or other groups have the ability (and 'nands-on knowiedge oY community needs) to operate smail housing and commercial loan programs. Yet, because the intent of these projects is to generate revolving "loan" funds in the neighbrood, PED views the initial funding of them as "grants." Access to loan funds should be independent of PED control and neighborhoods should be allowed to operate loan programs using the loan portion of the sales tax program. 6. LOANS TO INDIVIDUAL BUSINESSES. The provision requiring indivi- dual businesses seeking loans or grants to partner with a comnunity group was quietly dropped two years ago. It should be reinstated. Sf sales tax funds are to be loaned or provided to an individual busi- ness, it shauld be done as part of a"stra£egy" and coordinated at some identi£ied 1eve1 with a CDC, District Council, business associa- tion or other more broadly-based organization. 7. SIMFLIFY - AT ALL LEVELS. The evolution of the forms and con- tracts used in the STAR program is truly a study in beauraaracy, The applicatian forms evolved from the former NPP program and are Zong and redundant. A cover-sheet, three page narrativs and budget page should suffice. In terms of contracts, the program started with model federal pragram contracts, which are among the most complex. 5implify. Drastically. 8. REVI5IT THE ISSUE OF PROJECT ADMZNISTRATION OR "50FT COS1S." 6btain an opinion from a group of outside attorneys and bond experts on the question of maximum al2owed costs associated with the capita2 activities. Then act on it and use it. ��- ia� Cfty of Saint Paul Cfty Council Research Center Room 31� City Hall Saint Paul, MN 55102 612 266-857� INTER-DEPARTMENTAL MEMORANDUM DATE: February 18, 1998 TO: Council President Bostrom and ,,� Councilmembers FROM: Marcia Moermond, Poliry Analyst �� SUBJECT: Sales Tax Revitalization (STAR) Program Proposed Guideline Amendments for Today's Policy Session This memo reviews the proposed changes to the Neighborhood STAR program guidelines. It also provides aiternative language for amendments about which some Councilmembers and Aides have expressed reservations. The amendments are listed below in the order they appear in the handout titled "1998 STAR Board Recommendations" which is in the Council packet. The pages refer to the Neighborhood STAR Program Guidelines with the proposed amendments which is also in the Council packet. �. � i Ii { 'i �. /'!! / "1 � �' / • i!L . ! " �- �• � Applications for STAR loans be accepted at any time throughout the year. Pages ii, 1 and �-�'� 10. Page I language.• Application for loans may be submitted at any time. Alternate language.� Application for loans may be submitted on a competitive basis quarterly. Page IO language: I. B. Applications for large loans are open all year... Alternate language.• Applications for large loans are open on a quarterly basis... /� lElimination of pre-application process. All completed proposals will be considered for �� funding. Pages 10, 11, 14, 15, 16 and 34. Notably, on page 16 ihe provision below is deleted as it is a pan of the pre-application process. This may have the effect of dampening citizen participation in the STAR Board application review process. Alternatively, this provision may be moved to precede point B direaly below where is appeazs currently, thus causing a re-lettering of the points it pushes lower (B through F, instead of B through E). A. 3. d. , � __'_ _' '_'A� o'T' e n� � • i• 1 t f n Tt a � vi n c - � --''- -' '- � �' - L'_�__•_7 _ -lt f •t 1 t t �Yy - - b --- -- --- — za '.u�c� 1�na.�.��.ur.w� .� T�.iva.i.s�cte.w ( -S ) STAR loans less than $50,000 wili not require a 1:1 match. Pages u, 5 and 19. �� Seed Capital Fund to be eliminated, making new program aliocation goals: 60% loans and 40% grants. Pages u, ui, 5, 18, 20, 21 and 35. � Loans $100,000 or less may be approved by the Director of PED upon STAR Board recommendation. Pages ii and 10. Page 101anguagr. I. F. Review by Mayor and City Council for all loans exceeding $100,000.00 and all grants. � Under the Revolving Loan Program, recourse will be to the end borrower. Pages 3, 4, 21, 22, 23, 24 and 26. Other amendmen*c tn thP g�.�dol��PC• Annual Priorities Statement. Pages 1 and 2. Staf jrevie�rn� of application (suggested, not required) 2 weeks prior to deadtine. Page 13. Return of incomplete applications after deadline. Page 13. Review and information sharing on applications. Pages 15 and 16. Slight rewording and moving of text from page 15 to 16. Referral of grant applications of $20,000 or less to Small STAR Grant Program. Pages 18 and 19. The proposed deletion of the following provision from page 19 does not appear to be consistent with text on page 18. Page 18 I. A. 2. ...Requests for funds of $20,000 or less will go to the Small STAR Grant program. - : ' - .. , Pi�I.l��f-f ��iqi»�i�Jnf-��w) ��_��rn�� Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File ��- �a� City of Saint Paul City Council Research Center Room 310 City Hall Saint Paul, MN 55102 612 286-8570 INTER-DEPARTMENTAL MEMORANDUM DATE: February 10, 1998 TO: Council President Bostrom and Councilmembers ` , FROM: Marcia Moermond, Policy Analyst (� �d� SUBJECT: Sa1es Tax Revitalization (STAR) Prograzn Repon and Written Commentary for Tomorrow's Policy Session Attached is a report on the 1995 and 1496 projects of the STAR fund just received from the print shop. This report was prepared by an intem for the Department of Planning and Economic Development. It may be considered as supplementazy or background reading for the policy session tomorrow. It provides a good summary or profile of all of the projects during the program's first two years of funding. Also attached is the only correspondence I have receaved thus far on the $TAR program policy session. Based on some of the briefings that have been conducted preparatory to the policy session, I will be providing Councilmembers with policy options and guideline amendment language for the STAR board recommendation that applications for STAR loans be accepted (and processed) at any time throughout the year. Please let me know if you would like any follow-up on this or related issues. cc: Gerry Strathman Chron. File Fi��= + -+� � ± From: To: Date: Subject: East Side N Dev <HN6244@handsnet.org> miscunix.smtp("maraa.mcertnond@ci.saint-paul.mn. us... 2/91981:37pm Proposed STAR Guideiines revisions Ms. Meorman: My name is Rich Malloy of East Side Neighborhood Devebpment Company and the Payne Arcade Area Business Association on Payne Avenue and Arcade Street. f think the STAR board recommendations are very good however, 1 have a few questions: The summary states that "Under the 12evolving Laan Progrem, the recourse wilf be to the end borrowef'. Would this be effective retroactive�y? if the recourse is to the e�d borzower, then who has authority over loan approwal? Under the eurrerrt system, if the GDC makes a ioan then recourse is to the CDC. It the rules change so the recourse is to the end borrower (e.g. a husiness owner) then can a CDC still approve a loan? As a CDC person, I like this rule, but will PED? Further, 'rf PED must be the fina4 approving authority vrith their existing guidelines and underwriting criteria , then what we have is a program that only approves loans that a bank would do. I thought the purpose of economic development loan programs was to provide financing for that portion of a loan a bank won't do. So, the question becomes, is PED going to take on more risky types of veMures? The 6ottom line is that given the approval process for a STAR loan, it is much easier for a business go to the bank. Mail Sent: February 9, 1998 1125 am PST Item: R012oY3 q8 � l�� • , � J � �. W h i G � ! U A ' E ' ^J z, O L 0. 0. N `v � 9 Q e 0 N 0. � � U O N � 0 � d O a m A N � « � � 'a �� 4 N o a C N � G � . 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G s` U G h N R � a. a T j y �N � N s � ;�¢ s y � Oda O � °» e 0 ° o 6�9 h � d " F o � a+va 6 ° o c N F � A o N y U U a °,G � E _ m'm ��'^m8 s.U2 N p �� p`,U,Zh Q8 • • r L J A �, °' u o F=, a` u � E cv a z � N U N C N O N a 6 N m m ti � V m v Q c 0 a V A � U 0 N .� m O � m z U d O a. w W N C7 « 5 c o �j m � a j v t v v � v `a i � e .W. � � m � � E � � Hz N O N N � N .3 � �n `v � 4 ¢ a � F ri� q 0o Q e N m e x � E E A � � � ' � P a � N d �' L O R C F E � o � U ° E Q � F y m� � �p w am� � s � ° v u`"s N � � �� h � a w` 0 F .c � o� y °(J U —`° s — �_ m �a i U z � o n n n a`�z� ��-�a�d Saint Paul Neighborhood and Cultural STAR Programs Report on 1995 and 1996 Funded Projects SAINTpAUL S T A R Jarillary� 1998 PROGRAM n. :'\ :-.,;^` 1C ♦ - ' �k - �, CIT'Y OF SAINT PAUL DEPARTMENT OF PLANNII�7G AND ECONOMIC DBVELOPMENT i i � � � � 1 �� Egecutive Summaries �Neighborhood STAR Program �Cultural STAR Program . . ,� i-iii iv-v � � � � � � � � � � � � � a�- 2a� Neighborhood STAR Egecutive Summary The Neighborhood STAR Program's focus is on revital.izing Saint Paul. It does this by using the sales taY derived STAR Program funds to leverage private and non-profit improvement efforts and investments in Saint Paul neighborhoods. The program works in partnership with community members, leaders, and organizations to accompiish the objectives of the prograni. The STAR applicants submit program and project proposals to an appointed boazd. This board, the Neighborhood STAR Boazd, evaluates the proposals and makes r�ommendations to the Mayor and the Saint Paui City Council. In this cotnpetitive process the City Councii makes the final decision about which pmjects and programs get funding. When making decisions about which projects and pmgrazns to fund, the STAR Board, Mayor, and City Council consider how the proposals help the City of Saint Paul reach its community and economic goals for revitalization. This report was prepazed by Fran Bums, a gtaduate student of the Humphrey Insritute at the University of Minnesota. It is an independent report. The oprions and recommendations presented are those identified by the author and aze based on his interpretarion of the information gathered through interviews with the neighborhood project managers, PED account officers, neighborhood residents, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomplishments and StudKFindings Currently the STAR Program is in the midst of its third funding cycle. Although the Neighborhood STAR Program is relatively new and most of the lazger projects and programs stili have active contracts, the time has arrived to examine the projects and programs as set forth in Part 6 of the guidelines. Through an examinarion and evaluation of the Neighborhood STAR Prograxu for cycles 1995 and 1446 it has been determined that through August 1997: • 165 homes have been improved • 50 businesses have been improved • 17 education and community centers have been revitalized • 9 parks and recrearion projects are safer and better equipped • 5 streetscapes are more inviring and accessible • 119 job have been created Other interesting findings • 22 of 61 projects are complete. Of the remainiug 39, only three aze under expired contracts. • On average, STAR funds aze be9ng matched with non-City resources more than 2 to 1. • A higher proportion of the 1996 match than the 1995 match comes from monetary matches. • An increased percentage of STAR-fund recipients from 1995 to 1996 have a positive view of the program. The most cited concern held by the neighborhood proj ect managers relates to lack of staffing and administrative costs. It was menrioned by 20% of the neighborhood proj ect managers interviewed. Information for this report was acquired through intzrviews and research of program files and documents. The interviews were conducted witfi neighborhood project managers, Department of Plazming and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who are generally the best informed source of infomiarion on their particulaz project or program, gave updated informarion on their accounts and also identified concems that they have with the Neighborhood STAR Program. The mast often cited concems were: • Neighborhood staffing and adminislration costs aze not paid by the prog�am, • Recourse and undenvriting requirements for the 1oan program are restricrive and unrealisric. • It is difficult getting fair bids from contracYors in a short period of time. • Regulations and guidelines for the program require too much monitoring and record keeping by the neighborhood pmject managers and project staff. Recommendations As a result of reviewing the accomplishments of and concerns abont the Neighborhood STAR Prograzn gathered in ttie interviews, recommendations have been developed to m�imize the benefits of the program and increase its rate of progress. Again, these recommendations aze fhose of the author. The recommendations are: 1. 2. � Require that each applicant execute a strategic »lan for the project or program that it proposes to undertake. Maintain awards as a mix of loan, grant, and seed capital funding. Sef aside fvnding for mutti-year proposais. Do not transfer tlus money into funding single yeaz developments. 4. Designate Saint Paul sites that potentially will accommodate mixed-use development. This information should be made available to potential applicants and the general public in a readily accessible form. 5. Give priority to projects and proposals that incorporate inter-neighborhood cooperation. 6. Coordinate Saint Paul revitalization with banks and contractors in an effort to increase the number of Iugh and higher density residential units available. 7. As competition increases over time require a larger match. 8. Cooperate with other departments and leveis of govemment in an effort to make plans known and foster compiementary actions in the physical environment. ii � � Summarv �� - i a� � The Neighborhood STAR Program is meeting the majority of its stated economic and community development objectives, and it has only completed two cycles. It can meet ali of the objecrives � including new housing and enhancing the taY base. However this dyuamic and flexible funding source requires well planned proposals that are being sponsored by committed groups and individuals. By implementing the above recommendations the Neighborhood STAR wili be able � to more fuliy meet its stated goals. � � � � � � lll Cultural STAR Exec�tive Summary The Culhual STAR Program's focias is on revitalizing Saint Paul's Cultural District and the culrival centers in the various neighborhoods. The Cultural STAR Program uses the sales-tas derived money to leverage private and non-profit improvement efforts in the arts and cuitural community of Saint Paul. This program Iike the Neighborhood STAR Program works in partnership with community members, leaders, and organizations to accompfish the objectives of the program. The Cultural STAR applicants submit project pmposals to the Cultural STAR Board. The boazd evaluates the proposals and makes recommendations to the mayor and the City Council. In detemvn'v�g if the proposed projects are fundable, the boazd, City Council, and Mayor examine how welI each of the projects may serve the community and its needs in light the objectives addressed in ttie prograni guidelines. This report was prepated by Fran Burns, a graduate student of the Humphrey Institute at the University of Minnesota. IY is an independent report. The options and recommendations presented are those identified by the author and are based on lus interpretation of the information gathered through the interviews with the cultural project managers, PED account officers, and the STAR Program coordinators. A more thorough evaluation of the STAR Program would involve additional input from other stakeholders and community interests and was not solicited for this report. Program Accomolishments and Study Findin�s The Cultural STAR Program is in its third cycle. It has'been effective in directing more than 75% of its funding to the Cuihuai Coiridor. As a result, the program has had a noticeable impact on the downtown and especially Rice Pazk. Through aa examinarion of the Cultural STAR Program for cycles 1995 and 1996 it has been detemuned that through August 1997: • 4 cuItural organizations' facilities have been improved • 2 pazk/streetscape have been improved • 2 commercial rehabilitarion projects have been completed • 10 jobs have been created Other interesting Tindin�s • 8 of 18 projects have been completed. The remaining projects are still under contract. • The projects are being leveraged with non-City resources at a ratio higher than 1:1. • No recurring concem was raised by the project managers in relationship to what the Cultural STAR Program was doing or the level of efficiency at which pmjects could be completed. Information for this report was acquired through interviews and research of the program files and documents. The interviews were conducted with Cultural STAR project managers, Department of iv � � � � � � � � � � y�� .� Planning and Economic Development (PED) account officers, and the Cultural STAR Program coordinators. The Cultural STAR project managers gave updated information on their projects. Recommendations As a result of reviewing the accomplishments of and concems about the Cultural STAR Program, recotnmendations have been developed to masimize the benefits of the program and increase efficiency in meeting its progtam ob,}ectives. Again, these recommendations are those of the author. The recommendations aze: 1. Require commercial developers in the cuihual corridor that provide services to cultural patrons to a�cept awazd packages that mix grant and loan funds. 2. Support multicultural projects by expandiug the percentage of funding auailable outside the cultural corridor. 3. Allow Cultural STAR funds to go toward operaring expenses. 4. Consider discontinuing the minimum funding rule for the cultural corridor after the initial 5 year period has elapsed. 5. Focus on funding org3IIlZations that tluough their creative efforts honor 5aint Paul. Ensure that children are part of the targeted audience of the cultural organizations that receive funding. The Cultural STAR Program is addressing all of its objectives. The STAR Program has helped downtown Saint Paui realize a renaissance and it is committed to conrinue that role. As funds available to cultural organizations dwindle, the Cultural STAR must strive to meet the changing needs of residents, visitors, and the cultural organizations. v I. Contents for the Neighborhood STAR Report Neighborhood STAR Executive Summary Cultural STAR Executive Summary Table of Contents A. Introduction B. Objectives of the Program C. Improvements Funded through the Neighborhood STAR Prograni D. Progress E. 7obs and Taxes F. Matches G. Perception of the Neighborhood STAR Program H. Issues Raised by Neighborhood Project Managers and Options for Addressing Them I. Overall Program Issues and Recommendatians 1. Short-Term Strategic Issues 2. Longer-Term Strategic Issues 3. Recommendations J. Conclusion Exhibiis Projecf Development Types (exhibits 1.1) Properries D'uectly Benefiting from the Neighborhood STAR Program (elchibit 1.2) Status of Program and Project Disbursements and Completion Rates for the SmaII STAR Program (eachibits 1.3) Status of Program and Project Disbursements and Completion Rates for the Large STAR Program (exhibits 1.4) Percentage of Funds Disbursed by Period (exhibit 1.5) Matches (e�ibiT 1.6 ) Projects with Sweat Equity as MaYch (eathibits 1.7) Matches (eathibit 1.8) Neighborhood Project Managers' View (exhibits 1.9) Issues Identified by Neighborhood Project Managers (ea�hibit 1.10) i-iii iv-v vi-xi 1 3 3 3,4,7 8 9 21,13 13, IS-19 19-24 19-20 ZO-21 21-24 25 2 4 5 6 7 9 10 11 12 14 vi � � � � � � � � Identification of Conditions Facing the Program (exhibit 1.11) 1995 Small STAR Projects 95.002 95.009 95.013 95.015 95.016 95.017 45.019 45.022 95.024 95.026 95.027 95.030 95.031 Neighborhood & Senior Citizen Garden Hamlitte Midway Greening/Park Accessability Project Child Care Expansion & Renovation Northeast Business and Development Center Open School Playground Reinvesting in Tomonow's Communities Riverview Area Streetscape Design Improvement Grand Avenue Summit Hill Beautification Thomas-Dale Handyman Fiac-Up Project Stutzman Block Initiative Walker-West Music Academy Music Garden WORC on Bikes The Express Bike Shop �' 1995 Large STAR Projects � � 95.104 45.113 95.115 95.116 95.125 95.127 95.130 95.133 95.141 95.148 45.151 95.152 95.153 95.155 95.158 95.165 95.166 Aesthetic Uplift and Senior Citizen Assistance Dayton's Bluff Neighborhood Housing Services Payne Avenue Commercial Gateway Strong Neighborhoods=Safe Cities Hamline-Midway Rehabilitation Corporation (H-MARC) Jewish Community Center Capital Improvement Macalester-Groveland Middle Income Fix-Up Neighborhood Development Center Dale Cross Road Development Strategy St. Alban's Terrace Railroad Is1and/Moving on the Right Track Riverview Area Streetscape West Side Business Development L,oan Fund Industrial Expansion and Renovation Loan Prograzn Phalen Corridor Redevelopment Project Cambodian Community Center University Marketplace Facade Improvement �-iag 2425 27 29 31 33 35 37 39 40 42 44 46 48 50 53 55 57 59 61 63 65 67 69 71 73 75 77 '79 80 82 84 vii 1996 Small STAR Projects 96.001 96.002 96.003 96.004 96.005 96.009 96A11 96.013 96.014 96.016 96.017 96A19 962 University Avenue Facade Improvement Maintenance, Training, & Dishibution Center Furniture Wazehouse Children's Center Playground Dayton's Bluff Youth Project HamIine Branch Library Public Improvements Skyline Towers Piayground Project Saint Paui Access Solutions Project John Alden Square Gazebo St. Anthony Park Facade Impmvements Progruu Salvation Army East Side Corps. Community Center Parlang Lot Stutzman Block Facade 87 89 90 92 94 96 98 I00 102 104 106 107 1996 Large STAR Projects 96.103 96106 96.109 96.114 96.I15 96.119 96.122 96.123 96.126 96.128 96.133 96.141 96.145 96.151 96.157 46.163 96.168 96169 96.170 394 Dayton Avenue Rehabilitation Project Gateway to Como Pazk Lighting Arcade/Maryland Face to Face Minnehaha Mall Enhancement Lazge Format Printers Highland Viliage Revitatization 5e1-Dale Laundromat Build Community and Neighborhood Capacity MacLazen Hill Condominium Association Reconstruction Project Minnesota Boat Club Restoration Frogtown Entrepreneur Center Phalen Corridor: Williams Hill RAP Midway Area Head Start Program Coordinated Housing Investment Program Salvarion Army 7th Street Community Center Ramada Hotel University-Midway Neon Sign Pmject West 7th Commercial Revitalization Lyngblomsten-West 7th Senior Housing 108 110 111 113 1l4 116 118 120 122 124 126 127 129 130 132 134 135 136 138 viii � � � � � � � � � � � ix f � ,� II. Contents for the Cultural STAR Report A. B. C. D. E. F. G. H. I. J. K. Introduction Objecrives Improvements Funded Through the Cultural STAR Program Progress Compliance Economic Impacts Matches Perceptions of the Cultural STAR Program Issues Raised by the Cultural Project Managers Overatt Program Issues and Recommendations 1. Short-Term Issues 2. Longer-Term Issues 3. Recommendarions Conclusion 139 139 141 141 141-142 142 142,145 145 145 146-147 I46 146 147- 148 148 Exhibits Status of Culhu�al STAR Accounts (eachibits 2.1) Matching and STAR Funding (e�ibit 2.2) Cultural Matches (exhibit 23) Cultwal Project Managers' View (exkibits 2.4) 140 143 143 144 X �. � 1995 Caltural STAR Projects � � � � 95.509 95.510 95.511 95.516 95.518 95.523 95.528 95.530 95.534 Skyway Lighting Library Facade Lighting Rice Park Improvements Minnesota Club Handicapped Entrance Minnesota Museum of American Art ExpansionlRenovation Ordway Patron Service Improvement Arts Resource Center Expansion Saint Paul Chamber Orchestore Cambodian Community Center � 1996 Cuitural STAR Projects � � � � � 96.542 96.545 96.546 96.549 96.550 96.551 96.552 96.554 46.559 Science Museum of Minnesota Expansion Friends of the Library's Used Book Store Hilicrest Recrearion Center Theater(Communication Room History Center Exterior Signage Cultural Comdor Streetscape Plan Jackson Street Roundhouse Museum Development Museum of Wheels/Storefront Gallery Minnesota Centennial Showboat Renovation NeimanlJemne Building Loan � � C Q� - l a� 149 150 151 152 154 156 158 159 161 162 163 165 166 167 168 169 171 173 xi L' � i � A. Introauction Neighborhood STAR Report �� The Minnesota State Legislature approved authorizing legislation in May 1993 which pennitted the City of Saint Paul to levy an additional %z cent sales taac. 11us legislation states that the revenue may � be used to pay for all or part of the capital eapenses for expansion and remodeling of the Saint Paul Civic Center Complex, and that "the reminder of the funds must be spent for capital projects to further residential, cultural, commerciai, and economic development in both downtown Saint Paul � and Saint Paui neighborhoods." Through a resolution the City detemuned that 50 percent of the additional sales ta� raised would go to neighborhood revitaliza6on. The remauring 10°/u would support cuiturally related projects, primarily in downtown Saint Paul. The City Councal established � the Sales Tax Revitalizarion (STAR) Program which includes the Neighborhood STAR Programs, in mid-1994 to awazd grants and loans for capital improvement projects. � This report examines the Neighborhood Sales TaY Revitalizarion Pmgram (STAR) for the first two cycles of the program in 1995 and 1996. It considers the program's strengths and weaknesses by looking at 61 individual projects and programs funded through the Neighborhood STAR Program � as well as overali indicators of the program's performance. The report focuses on the level of success that the progam has had in meeting the goals and objectives outlined in the program guidelines. The examination discusses cSrcumstances and strategies which have helped the � Neighborhood STAR Prograni meet its objectives and identifies areas for nnprovement. The report emphasizes the opporhxnities and threats which are present to the Neighborhood STAR Program. � It proposes options and recommendations for enhancing the program by taking into account the diversity of the program participants, the expectations of City of Saint Paul officials and staff, and most of all, the needs of Saint Paul residents � Information for this report was acquired through interviews and research of progam files and documents. The interviews were conducted with neighborhood project managers, Department of � Planning and Economic Development (PED) accownt officers, neighborhood residents, and the Neighborhood STAR Progam coordinators. The neighborhood project managers, who are generally the best informed source of informa6on on their particular project or program, gave � updated information on their accounts and also idendfied concems that they have with the Neighborhood STAR Program. This report was prepated by Fran Bums, a graduate student of the Humphtey Institute. It is an independent report. The options and recommendations presented aze those idenrified by the author and aze based on his interpretation of the information gathered through the interviews. Projecf Development Types ror+sgs Ne�annoNwoa sraFt 5'1�026,000 (36.SX) Commerciet Sss,000 �ts 564,425 (2.3%) Parks 8 Reueationai unprweme� 'Sea�9 Ne9hmrta W r-Sate CSf nas tivee mmpom�es resiE ntiel. tdnre�aal.vtl aPak vnW'mmvR z9sx) Res�aenGa� (282Y) FAUratioN COrtmurpry& Social SerNCes I Project Development Types � for t996 Neig�6orhoad STAR 5/,290.000 (31.�) Coimnerclai 5140p07 (S.6%) 5 SSS,92a ryAH.) Parks & R¢creatlanal Exhibits 1.1 W.BX) Reside�rtal .BY.) EduqtloNCommunity & Social Services E � � � B. Objectives of the Program "ID �c�p � The following objectives are listed in the program guidelines adopted by the City Council: � Economic development 1. Enhance the commercial and industrial taY base - 2. Create family supporting jobs � 3. Improve andfor stabilize local businesses and provide athactive and economically viable neighborhood commerciai areas 4. Reuse land following pollurion clean up � Community development l. Improve and/or stabilize housing stock and/or increase market value 2. Provide new housing that meets an identified need in the mazket � 3. Improve public infrasmncture and private green space especially if the projects are linked to related residential or commercial improvements � C. Improvements Funded Thro�h the Neighborhood STAR Program Tt�e results from the interviews with the 61 Neighborhood STAR pmj ects and programs indicate that � a substantial amount of revitalization has occurred in Saint Paul as a result of the Neighborhood STAR Program. L3p to the time this report was written 215 housing and commercial properties were � directly improved as a result of STAR projects and programs. The Neighborhood STAR programs and projects haue accomplished more than residential and commercial improvements. As a result of the program, two streetscape improvement projects have been completed, one on Concord Street � and the other on Grand Avenue, two more are partially completed on Wabasha Street and Ford Parkway, and another streetscape improvement on Como Avenue is in the process of being implemented by Saint Paul Public Works. Additionally five parks and playgrounds have been � created or improved and fotu more have been partially implemented. Lastky I7 community center projects have been awazded Neighborhood STAR funds. Of those projects, nine are completed and eight are in the process of being completed. The diversity of projects funded through the � Neighborhood STAR Program allows it to touch virtually everyone in Saint Paul. As a result of the streetscape projects, tens of thousands of Saint Paul consumers have improved shopping environments, and in the cases of the pazk, playground, and community center improvements, � thousands of families and their children aze beneficiaries. b D. ro re s Nearly all of the 19 fully disbursed projects and programs &om 1995 and 1996 have achieved the goals ouflined in their individual contract descriptions. Three of the fully disbursed projects and programs have noi been fully unplemented. One is a program which involves a loan guaranty and is still under contract (Mao-Groveland). The money was disbursed by the City prior to any improvements because of the way this program was set up. As a result full disbursement does not indicate completion. The other two incomplete projects ( John Alden Gazebo & Dayton's Bluff Youth Project) face a different circumstance. They went over budget. One of the two is completing the project by the end of fa111997 while the other informed the Neighborhood STAR Program about its cost ovemms and was permitted full reimbursement because the project could document a sufficient matcb and had been completed to an acceptable level. As of September 1997, 22 projects and pmgrams have been completed. Tlus includes three accounts which have not been fully reirnbursed. This is due to the fact they still haue not submitted the appmpriate reimbursement forms, or they declined the remainder of the awazd. Currently only three of ihe remaining 39 progams and pmjects that are not complete have eapired contracts. The three programs and projects with expired contracts are under the Neighborhood STAR staff's and board's serutiny. The majority of the open contracts expire in 1998 and 1999. Properties Directly Neighborhood 1995 Houses Busmesses Streetscapes Parks and Recreation Fducalion & Comrunity Centers Exhibit 1.2 Benefiting from the STAR Program 73 22 1996 92 2% 2 4 Total 165 50 5 9 F'7 11 17 Progress on the impiementation of prajects has been varied and on average fair. The small grant projects are easier to gauge in this regazd because their contract periods have elapsed, and also because the contract signing process was more efficient. The small grant portion of the Neighborhood STAR Program has a sepazate application process from the remainder of the program. Small grants are awazded in an amount of $20,000 or less, and contracts are effecrive for only one yeaz aRer signing. Thus, the contract signing took less time for the small grants because recourse was not an issue and the contracts were less complex. The 1995 small grant contract completion progress rates within the contract periods were low (38.5%) but have increased by more than 50% for the 1996 small grants. The completed Sma111995 Neighborhood STAR pmjects were implemented on average one month prior to the expirarion of their contracts. The reason that the overall completion time was one month prior to the deadline was because a few projects were completed extraordinarily quickly. The pmjects that were completed more quickly would be classified as commercial and not as residenrial. The 1996 Smali Grant Program indicated an average completion rate of four months prior to contract eapiration. This too shows moxe success in the timely completion of its commercial and civic pmjects than it did with residential projects. � � � � � � � � �� L � ■ STATUS OF THE 1995 SMALL STAR ACCOUNTS � Siatus of Projeet Aceount Dis6ursemeMs � fort9955mai1STAR i 8 (61.5°/) 2 (15A%) •rmry I ❑none ��N I 23.1%) Projects Compieted within Anticipated Period far 7995 Smali STAR 3 (23d%) • Yes ❑ no 10 (76.9%) I Pro}ects Cnmpleted within Contractetl Period Ior t995 SmaI15TNft 5 (38.5%) .Y� o no �� - �a� STATUS OF THE 1996 SMALL STAR ACCOUNTS Status of Projeet AccomH Disbursements i for�9965ma115TAR 5 (41.7%) 2 (76.7%) 5 (4'1.7°! ) I .Poiry OfIOf18 �PaNalry Projeets Completed wHhin Anticipated Period tor 7896 Small STAR I 5 (41.7°/,) 7 (58.3%) •yss I ono i an:a�mmmpemnaawnanm�omvrcetampqnu.eae<imAnsxm�unar.a I nwraerne.w�+�omi-w: .— _ . I Projects ComplMed within the ContraMed Period � tor 1996 Small STAR I 7 (58.31) � • Yes ❑ no 5 (41.7%) e.a�.�mm, n...m� � r..m.a�.�.m=�-ra { Exhibits 1.3 5 8 (61.5%) STATUS OF THE 7995 LARGE STAR ACCOUNTS StaWS of ProjeM Account Uisbursemenis rw �,rn +su x.�cxn�,�e sue Jryz.aXl f0(54!%) sFl om 9p�mM � Projects Completed Within Mticipated Period i lmf995WPSTAR Ys p11J eimwOln Projects Completed wiMin ContracMd PeriOd ro.�aro.�mrLk��sTAa 15 �63%1 •YM om JIRb%) euwNN t(59X) 2¢wuammpleWnOg¢Slammtcmuetbr PDI�.��aae NYIMefOfeqxld�l¢-� y¢ )C5.1 ¢ ro Exhibits 1.4 STATUS OF THE 1996 LARGE STAR ACCOUNTS Status of Project Account Dishursements �r ivw+sss wqnna noea srat f0. t (]BA%) M1�J eWrYaYy Prol� �mpieted wAhin Mticipated Period I ! I torWplsssNtlpMwnmasi�x i 9 (OAX) �Y o �b 3(tS!%) aW�% )NSSY•) Projects Completetl withirt Contract Periotl brinPt936Htlp1qe�M1eoL3TIJt t6�91.T%) fl43%1 •nmY swm.ib BqY NGml�l�+ nEel:B�S.lilrtap]mM.a;➢��M15��1�4dNW NW�.+IpfGtp�-19ye�es � �. � � � � � � � � q�- �d� It is harder to determine the rate of completion for the 1945 Latge Neighborhood STAR and 1996 Neighborhood STAR projects because a majority of the projects have not reached the deadline expiraiion dates on their contracts. The 1945 Large Neighborhood STAR proj ects look promising for timely compietion. For the completed projects the average progress schedule was finished eight months prior to the conhact eapitarion. Project managers from both the 1995 and 1996 Large STAR Prograzns are indicating an expected timely completion rate ofmore than 75°/a. Tlus is substantially higher than the 1495 and 1996 Small STAR grant complerion rates. The success rates for all the 1995 and 1996 Large Neighborhood STAR acrivities are impressive, but aze still strongest in the non-residential development types. One must bear in mind that comparing the rates of completion between the Small Neighborhood STAR and the Large Neighborhood STAR might not improve one's understanding of the entire STAR Prograzn. For one flvng the Sma11 and Lazge Neighborhood STAR Prograzns have different lengths of time to complete the'u projects. Second, the bigger loans and grants aze typically granted to lazger organizations which might have more resources and sawy to complete a project. Third, the 1995 and 1996 Large Neighborhood STAR projects have not come to fruition in most cases. The progress rate for these proj ects is based totally on expectations. Thus by coraparing the small and lazge projects one is comparing what has been with something which has not completely happened. Percentage of Funds Disbursed by Period Sma111995 � Total f Large 1995 � Total � Smali 1996 Total � Large 1996 f Total Exhibit 1.5 Percenta�e Disbursed 80% 61% 72% 32% Contract Amounts of $ I 60,254 of $2,653,578 of $178,374 of $3,297,163 *As of 913/97 (36 of 61 contracts still open). E. Jobs and Taxes Determining the economic impact that Neighborhood STAR funds have on a pmject is difficult The STAR does not fund the entire project. At least half the project costs have to come &om another source(s). Moreover, other factors such as accessibility, crime, amenities, jobs, schools, and numerous other variables play a significant role in the impact of aprojec� Two traditional economic measures of a projecYs success aze jobs created and ta�ces paid. Because the Neighborhood STAR projects all involve development with bricks and mortar, these measures are fitting. Job creation cleazly occurred in these projects, albeit of a temporary duration, because of the nature of construction. Hundreds of temporary construction jobs were generated. In addition, permanent jobs were created on varions STAR Progratn projects. In 1995, Neighborhood STAR-funded projects created jobs for 15 permanent full-time employees (FTE) and 32 part-time employees (PTE). 'The 1996 STAR-funded pmjects show a substantiat increase in FT'Es to 66 and a decrease to six PTEs. The other measure to be considered, ta�ces paid, has Iimited usefulness because of tfle frequency at which properties are valuated and the method useti Yo determine the tax amount. Properties are reappraised at Ieast every four years whereas the Neighborhood STAR Program has only been operating for two complete years. For this reason most of the STAR projects have not had an increase in property valuation. The method by which Ramsey County revaluates much of the pmperty also slows the process. They take an average pmperty value for an area and assign that value unless there is a petition of a particulaz valuation. Because of this approach most of the business and residentiai enterprises that received Neighborhood STAR funds were not reappraised yet. All of the property tac valuation increases that can be documented as resulring from the Neighborhood STAR Program were associated with business projects. For instance fhe new owner of the Ramada Inn on Old Hudson Road paid offthe delinquent taxes from the previous owner. This renovation project which included Neighborhood STAR funds has restored this property to its full operational level. As of May 1996 tlze new owner paid $342,027.15 in previously assessed tases. Another example of an increase in the taY base or successful taac collection was due to the development of a light industriat enterprise at 110 Sycamore Street. T1us property was previously under the care of the Saint Paul Port Authority and was classified as tas-exempt. As of talc yeaz 1998 this property will be talced as a commercial properiy with a land value of $138,300 and a building value of $500,100. A third property which contributed significantly to an increased taac base was the STAR funded Sel-Dale Laundromat. T7us pmperly was in health-threatening disrepair, and it was valued at $50,400. After the renovation tlus property, classed Commercial B, was revalued at $ I25,600. This is only a smail survey of properties that have received STAR funding and have recently increased the tax base, but as the years elapse and more 3TAR recipient properties are reappraised the valuation and tases aze likely to increase. f� � 1 F. Matches As stated eazlier the newness of the Neighbozhood STAR Program and the fact that it does not act � in isolation makes it difficult to determine its impact, but some facts are ciear. For instance the funding matches to the Neighborhood STAR Program for 1995 and 1996 are runtung at more than � � Matching and STAR Funding for 1995 and 1996 Neighborhood STAR ��a� � � � � � � � Eghibit 1.6 r � � . STAR Disbursements � Documented Matches twice the required rate. On average, every time a Neighborhood STAR dollar was reimbursed there was $2.18 invested in the project from other sources. The most robust example of a match is seen in the 1995 Lazge Neighbarhood STAR Program. It shows $2.61 of a private match to every dollar of STAR contribution. Although, at this point, data does not show this increasing from 1995 to 1996, it is probably a function of tirue. Only 32% of all 1996 Lazge Neighborhood STAR funds have been disbursed whereas 61 % of funds have been disbursed for 1995 pmjects. As 1996 projects aze completed, the current match ratio of $1.57 to every Neighborhood STAR dollaz is expected to increase. The proposed pledges indicate that there will be $3.04 provided for every Neighborhood STAR dollar for the 1996 Large STAR projects. This pledge projection compares quite favorably 0 Projects with Sweat Equity as Mahh I forSmali 1995 STAR 70 (76.9Yo) 3 (23.1%) � yes � no I P�ojxts wiM Sweat Equity as Match for Small 1996 STAR 6 (50.0%) a yes 6 (50.0%) � � Projects wiM Sxeat Equity a5 Mgtch I for Wrge 7995 STAR �� '� n�R '�`� � e„ r r 4;:3 x'�t,.r �. �. a Z � .�::- F .�i;:J `w,,, x-- � y25 � no i f Projects wifh SweM Equity as Ma[ch � i for La'ge 7996 STAR i �� •� � F �� ' � � av � � �� .. r "F �I� { fi }a( I y.� a .• .s ''Gkk'' BL.�'.n'uA� � yes m no F�chibits 9.7 IO � , , � !. � � � � � � LJ � t• . ! Exhibit 1.8 � to the $2A1 piedged for the 1995 Large Neighborhood STAR Program. What is equally heartening � to the increased rate of match for Neighborhood STAR funding is the fact that the matching dollars increase. The Neighborhood STAR Program is accomplishing its goal to be a catalyst for reinvestment in Saint Paul's neighborhoods. � Sweaf Equity: Another positive indicator of the economic unpact of the Neighborhood STAR Frogram is a decrease in the number of projects which use sweat equity as part of the match. � Although proj ects can show as much as 30% of their match as sweat equity and in some cases more for the Small Grant Yrogram, only 1.6°/a of the total documented match has been in the form of sweat � equity. The number of projects identifying sweat equity as part of their match decreased from 13 in 1995 to 10 in 1996. The absolute number of dollazs has also decreased from $75,546 in 1995 to $27,456 an 1996 as of 9/3/97. This decrease is addifionally interesting because the absolute amount � of STAR monies. G. Perception of the Neighborhood STA.R Pro�ram During the interview process both neighborhood project managers and residents gave their opinions about the Neighbarhood STAR Program and its impacts on their communities. Despite some issues raised by the managers their overall responses would be characterized as posifive regarding the Neighborhood STAR. For example, Colette Ryan, the project manager of Chiidren's Center 11 Neighborhood Matches through 9/3J97 , Project Managers' View of the STAR Program I for Small 1895 STAR Recipients 9 (692H.) 2 (15.4X) 2 (15A'b) � positive o negative � no cammeM Project Managers' View of the STAR Program ' for Smalt 1896 STAR Retipien4 e (75.OH.) 3 �25.OR) � posNVe � no wmment Project Managers' View of the STQR Program !` for Large 1995 SiAR RecipieMs 9 (52.9•4) 3 (17.6°�} 5 (29A%) � positive � negadve � no wmment Project Managers' View of the STAR Program � forLarge199657ARRecipients 11 (57.9°/.) Z ltasxl 6 (31.C/.) Euhibits 1.9 �� I o negative � � no wmment '� �� C� � � 12 � 1 � lJ `� . � Playground, described the Neighborhood STAR Program as a"good fiY'. She said, "the coordinators were helpful." Another instance that represents the positive perception that the project managers have was voiced by Burt Gart. Mr. Csazr is the project manger of the Jewish Community Center Capital Improvement. He said, "the STAR worked well...it was relatively flc�ible." This outlook on the Neighborhood STAR Program was shared by most of the participants. Neighborhood staff are convinced of the Neighborhood STAR Program's positive impact on Saint � Paul and are expecting continued success in the future. Almost every manager's concerns about the Neighborhood STAR Prograzn were subordinate to their support of the important purposes of urban � revitalization and development as achieved through the I3eighborhood STAR Program. The neighborhood project managers' perceptions are shown in elchibit 1.6 and indicate that the positive view of the Neighborhood STAR Program has increased from 60% to 64% of garticipants and the � negative view has decreased from 17% to 6% of participants from 1995 to 1996. The residents and community members who commented on the Neighborhood STAR Program and its impacts were even more posirive about the STAR's purpose to improve neighborhoods than the project managers, � but they were less familiaz with the actual program. An East Side resident, Marion Sorlien said, "it (STAR) is a life-saver." She added, " others (homeowners) will follow suit (and renovate their homes)." Another resident, John Allen of the Aurora-Saint Anthony neighborhood said, " this (the � STAR) is a great opportunity. It has helped us spruce up the neighborhood." There seemed to be an overall attitude that revitalization programs offered by the City like the Neighborhood STAR "prime the putnp". They were hopeful that with such assistance they could improve their � neighborhoods and communities and enhance the general level of confidence in Saint Paul as a great piace to live, work, and invest. � � � � H. Issues Raised by the Neighborhood Project Managers and Options for Addressing Them: The options and recommendations presented ate those identified by the author and are based only on his interpretation of the information gathered through the interviews. The neighborhood managers of STAR pmjects identified various issues that they believe impede the STAR from having its greatest benefit for Saint Paul neighborhoods. It is possible that through an examination of these issues new options can be considered. After this step it can be determined if change wili improve the program and what shape the revisions should take. Concern #i � The most often mentioned concem discovered through the project interviews was the fact that Neighborhood STAR funds are not eligible to pay administrative costs incurred by neighborhood groups. The Neighborhood STAR Program participants aclaiowledged and concurred with the ' Minnesota State Legislature's objective that Neighborhood STAR funds go toward capital improvements and were aware that direct project management expenses are reimbursable, however 13 Issues Identified as Concerns by Neighborhood Project Managers Percentage of Managers Citing the tssue 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 900 Neighborhood Staffirtq and Administration Costs (20%) !rse antl Underwriting Requirements for Loans (73°h) � � � � Fair 8 Efficient Projed Bltls (10%) I 7 � � � � W I O Program Guitlelines and RegWations (10°k) I Q�, ,I � � Reimbursements (8Yo) � I Funding Match (89'0) Timing af Cyctes (5%,) Exhibit 1.10 14 � j L� � Q�- �a� they eapressed concem that projects are not able to be completed or at least not completed in a timely manner because of lack of funding for admiiustration costs. The organizations and community goups who aze participating in the Neighborhood STAR Program say that their budgets do not allow for the expense of administering the projects. It has been difficult if not impossible to get the funds elsewhere. At a m;n;mum the lack of administrative suppozt slows the implementation process down. Project managers recommended that 10% to 15°!0 of STAR awazds should be eligible to reimburse the participant for project administrarion and staffing. � Options � � � , � Petition the Minnesota State Legislature to amend the STAR authorizing legislation. In prepararion of this initiative the Neighborhood STAR Program could request that 1997 Neighborhood STAR participants provide informarion about their administrative costs. This will be an additional uncompensated responsibility for the projects at fust, but it will potentially aid future participants and 'unprove the level of information that the legislature will need to make a prudent and well-crafted decision. Furm cooperative partnership(s) with non-profit foundation(s). Since the Neighborhood STAR Program cannot directly give administrative reimbursements to projects, it should help the participants ]ocate the money by forging a fast-track procedure with appropriate foundations which would be agreeable to funding administrative costs. The project managers indicated that they ultimately get administrarive funds from foundations. This arrangement would merely streamline the process in order to get projects expedited. � • Require each Neighborhood STAR Program applicant to deTinitively describe from where its administrative bndget is coming. A question could be added to the Neighborhood STAR application which pinpoints the projecYs source of administrative � funding. These monies could be from the appIicanYs resources or those of another agency, but the funding source for administrative expenses must be identified in detail. t Concern #2 � Another set of issues that the project managers commented on was the recourse and undenuriting requirements of the Neighborhood STAR loans. The Economic Development Corporations (EDCs) and the Community Development Corporations (CDCs) voiced strong concem over the usefulness � of recourse which hoids their organizations responsible for the loans that they make. Again they understood that the Neighborhood STAR Program is hying to generate an envirorunent in which the EDCs and CDCs make sound lending decisions, but with little or no fixed assets they see this as � being ineffective and producing a chilling effect on the participating organizations' willingness to use the Neighborhood STAR loan funds. Another problem that the project managers recognize is the underwriting criteria that the Neighborhood STAR Program requires for loans. They believe that � credit reports alone do not take into account all the important factors that make a project worthy of funding. They think that the Neighborhood STAR Program's requirement to make loans that 15 maintain a 20% or lower loan loss level prohibits the Neighborhood STAR Program from functioning as it was intended. The community organizations that take issue with the Neighborhood STAR loan prograni see high risk as a reality of community and economic renewal in urban settings. Some participants believe that the Urban Initiatives Pmg�am (IIIP) administered through the Minnesota Depattment of Trade and Economic Development offers the Neighborhood STAR Prograni a model. The model shows fhat loan recourse goes to the end borrower. The commtmiry parhner (the intermediary agency) is not responsible for paying the monies back to the pmgram. The reason that recourse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regulations and requirements. Because of these qualities, it is seen as an effective tool by some parties involved with economic development. Options Conduct a Study. A study could be conducted that evaluates the social benefits and costs as well as the economic benefits and costs associated with changing the acceptable risk rating level of loan portfolios. The acceptable rate must be determined with proper consideration of all pertinent factors. With this said it must be recognized that underwriting criteria aze critical and must be followed when lending out citizens' taac money. As long as a thorough analysis is done of social and economic factors when considering a proper risk rating the undenvriting criteria should remain constant. Expand the STAR Program's relationship with private lenders. The Neighborhood STAR Pmgram could continue to enhance its partaerships with private lenders. In doing this the Neighborhood STAR's financial resources are matched with the bank's financial resources, community coniacts and Iending I�owledge. There are several Neighborhood STAR projects which aze demonstrating this relationslup. Two such examples are the Macalester-Gmveland Middle Income Fix-up and the Coordinated Housing Investment Program. They each can urilize the strengths of banks and reach citizens who haue not traditionally benefited from revitalization efforts. Concern #3 A concem that six of the participating managers cited was the difficulty they had when trying to get bids on proj ects. In many cases once they got a contractor to bid, the quotation did not fall wittrin their budget. Many of the project managers believe this happened because the economy was robust in 1996 and early 1997, and in pazticular the construction industry was strong. As much as the strong economy slowed the bidding process and inflated contractor fees for Neighborhood STAR projects stymied implementation, it is well wiYhin expectation that these conditions will not continue indefrnitely. In the meantime perhaps there are approaches that can be taken. � � � Options � � � � � � � � � � � � �� . � � Identify and assist broad-based community gronp(s) or other non-profit agencies to fnnction as (an) information resource(s) to project managers about available and qnalified contractors. Many of the smaller social and community organizations do not have the time, lrnowledge, or patience to locate andlor work with contractors. A resource like this could help to make certain that available and qualified services efficienfly connect with projects. Fees could be charged and collected on the user. These could reflect the entire chatge or be subsidized by other supportive agencies or non-profit agencies. • Ensure that the application information concerning the general contractor and cost estimates is complete. As the Neighborhood STAR Program establishes itself, it gains mare prominence and citizen interest. The applicants and Neighborhood STAR recipients aze becoming more familiar with the expectarions and requirements of the program. In this environment comperirion for the Neighborhood STAR's limited resources is heightened. As of the latest version of the Neighborhood STAR Final Application (1997) the name of the general contractor is requested if lrnown. The question could be modified to simply request that the contractor be identified. This may only be tentative, but it would give PED staff and the Neighborhood STAR boazd a cleazer indication that the applicant is aware of the true costs of the capital improvement ptoject. Another application question that could be helpful would address whether the general contractor can meet requirements set forth under Little Davis-Bacon legislation. Concern #4 Another group of neighborhood project managers said that the guidelines and regulations slow down the projects, alter the final product, and decrease the effecriveness of the Neighborhood STAR Program. Of the six who menrioned this issue a few were concemed with changes in the administrative requirements during the beginning of the program. They understood the need for the particulaz changes but thought that it should not have been done midway through the cycle. All the interviewed participants felt confident that future changes in the progam would be reserved to the periods between cycles. A few of the project managers were disturbed by the amount of regulation and associated record keeping that was necessary. Many of the participants view themselves as small players. They see the regulations and requirements thwarting their efforts to improve their neighborhoods. � Options � • Continue to make changes to the Neighborhood STAR Program only during the interim periods between cycles. By foilowing this procedure of geater continuity PED can foster public confidence in the program. It demonstrates the City's commitment to the goals of the STAR Program when it recognizes and aclmowledges the spirit of the program as well as the letter of its guidelines and the need to change. 17 Provide participants with literature that not only describes the legislation that defines the Neighborhood STAR Program bnt offers them awareness of the reasoning and bene6ts behind ttte regalations which they must comply with as Neighborhood STAR fund recipients. The information packet could be developed in conjunction with the City as a whole. It could explain that many of the regulations which apply to the Neighborhood STAR Pmgam such as Little Davis-Bacon and affirmative acrion apply to all City contracts. Some of the more key details of the applicable legislation could be considered during the project compliance meetings for the Neighborhood STAR Program. PED must also recommit itself to maintaining accurate, thomugh, and pmperly accessible files on every account regazdless of its size or the client who is involved. Additiona! Concerns Three other issues were idenrified by more than one neighborhood project manager. They were reimbursements, matches, and the awar@ cycles. Tke first two issues were idenrified more frequently by smail grant recipients and tiie issue of awazd cycles was mentioned only by managers of lazge proj ects. The participants wanted more fleacibility on these points. In particular they wanted less of a matck requirement, some cash advances as opposed to reimbursements only, and earlier cycles to take advantage of the entire construction season. According to a few project managers, getting reunbursements rather than advances put their organization's finances under stress. The Neighborhood STAR pazticipants are on limited budgets and cannot put the money up front. Reimbursement Oprions: First participants should ba reminded that the Neighborhood STAR Program will make check payments jointly to the Neighborhood STAR-funded agency and the provider of the reimbursabie service. Secondty the Neighborhood STAR Program could consider giving advances under a certain dolIar amount to participants with a good history of project management with previous STAR projects. If they do not provide the appropriate papenvork to warrani the disbursement withiu a designated period the award will be decreased accordingly over a deternuned period of time. Matching Options: One possible option to address the matck issue would be to eliminate the match requirement on loans under a certain defermined amounf. This option would not benefit smail grant recipients, but it would help those who are borrowing money from a Neighborhood STAR program and cannot get additional funding elsewhere. Another choice which might help the small gtant recipient would be to lower the match requirement for small grant projects but not eliminate it. This would help ease the pressure on some of the smaller participants while still requiring them to widen the project impact through a match. Cycle Option: Because of seasonally adverse weather it is easiest, most economical, and best to complete all extemal project nnprovements during certain times of the year. In order to complete the projects with the greatest efficiency it is pmposed that the application pmcess begin eazty enough to allow the initial unprovements to be reunbursed during the beginning of the first spring after Yhe application was submitted. STAR neighborhood projecY managers discussed many other m � � � ' � •i issues during the interviews, but no other issue was mentioned by more than one project manager. The single mentions included: lack of periodic checks on progress, lack of geographical fairness, inadequate direcrion and training sessions, unclear lines of organizational authority, and the limited benefit of a low interest rate in light of the costs to adhere to program requirements IE. contractors that meet City requirements. It is important to be awaze of and understand the issues that each of the Neighborhood STAR � participants raises. These community groups and members aze uniquely familiar with the interests and concerns of Saint Paul residents, businesses, and other organizations. Their Irnowledge of the City and willingness to share it enriches the program and Saint Paul as a whole. With this in mind � trus report wiil consider the interviews, the account files, and the various measures and indicators of the program's success to idenrify strategic issues and recommendations. � J. Qverall Program Issues and Recommendations � L i � � !J � � � � � � 1. Short-Term Strategic Issues: a. How can the Neighborhood STAR Program promote more expedient implementation of projects? When projects and programs are not completed within the contracted time period, they lose momentum. This has economic as well as social costs. The process of awarding Neighborhood STAR funds is competitive. In adherence and support of this feature of the program repeated efforts must be made at each step of a proj ecYs progress to ensure timely implementation. Although many of the projects both large and small accomplish their objectives on time and with minnnal oversight and direcrion, it must be recognized that each implementing organization has different strengths and weaknesses. It is the role of PED account officers and staff to identify these and guide the organizations in light of their individual needs and capacities. b. How can the Neighborhood STAR Program encourage participants to use the loan money? After exunining account disbursements and interviewing the project managers it is apparent that some of the groups who are participating in the Neighborhood STAR Program aze unwilling or reluctant to use STAR loan funds for neighborhood housing or commercial programs. In particular the difficulty associated with using loan money is most apparent among program operators rather than with individual projects. According to loan program operators recourse to them rather than to the end borcower makes it unattractive. They indicate that they are unable to assume that level of exposute for anoffier parties actions. However, it has been detemuned that it is important for the future of the Neighborhood STAR Progam that a certain amount of the money awarded be paid back. In particular by lending most of the STAR funds out rather than granting them the Neighborhood STAR Program provides for its longer term existence, assures the tas paying public that the awazds are investments (and thus will pay back to the community in many 19 ways inctuding monetarily), and gives the participants an additional motivation to develop that which is possibie instead of mostiy experimenring witti the improbable. On this note, what can be done to reimburse a lazger portion of project expenses with loaned money ratherthan grantfunds? c. What can be done to stimulate the number and qnality of multiple year development endeavors? This objecrive is set forth in section III of the Neighborhood STAR Guidelines. The multiple yeaz development endeavor has been pwsued notably with the Phalen Comdor Initiative, the Stutzmann Block Improvement, and the Coordinated Housing Investment Program. What can be done to enhance this aspect of the program? d. What can be done to foster cooperative efforts between development types? As seen in e�ibits on page 4 there are numerous programs and projects that fall within the five delineated categories, but with a few exceptions the pmjects are not designed specifically to complement one another. The projects that do complement one another aze usually commercial developments with streetscapes or residential developments with pazk/playgound facilities. Plans like these aze hopeful and can be used as models, but the Neighborhood STAR Program needs to go further. The Neighborhood STAR Program is targeted to not only make the neighborhoods look better but feel better. The multidimensional proposals can go a long way to protect and promote commimity stability and in tum make the community feel better. 2. Longer-Term Strategic Issues: a. How can the Neighborhood STAR Program facilitate greater cooperation between neighborhoods in commercial and residential development? A coordinated effort nf plan� and development could hring about more successes in Saint Paul neighborhoods. Although each section of the city has unique needs, a unified approach will help mitigate the portable quality of deterioration and blight. There are abundant human resources in Saint Paul neighborhoods and a shared identity througii municipal citizenship. Coordinated steps a�e being taken in certain parts of Saint Paul to capitalize on these conditions and opportuniries. The Neighborhood STAR Program should idenrify these efforts and work with them to revitalize the neighborhoods. b. What should the NeighborLood STAR Program do to increase the number of residential options in Saint Panl? The program is doing an excellent job in meeting the Neighborhood STAR's community development objective of improving andlor stabilizing the housing stock. This can be verified on page 5 which enumerates the houses served in the program. Under the guidelines this community development objecrive is the first cited. The second point under community development objectives recognizes the need for the Neighborhood STAR Program to assist with � , � � � � � , � , � � 3. � � � � I� �! the provision of new housing in Saint Paul. The Neighborhood STAR Program in all it diversity has addressed this objective albeit incompletely. Maintaining this goal is not only important for Saint Paul but the entire region. c. How can the Neighborhood STAR Program ezpand the revitalization process in Saint Paul? The Neighborhood STAR Program is a toal to help business and community groups develop their own capacities to sustain and further advance their neighborhoods. With the help of non-profit foundations and taacpayer contributions these groups have been effective in sustaining and 'unproving their neighborhoods. Over time as conditions in Saint Paul neighborhoods aze further stabilized, the Neighborhood STAR funds should be used to improve the environntent for redevelopment. Additional costs which aze associated with urban redevelopment like remediation could be partially covered with Neighborhood STAR funds. The Neighborhood STAR Program can help level the playing field, so development can occur as easily in Saint Paul as in the outlying azeas. d. How can PED and particularly the Neighborhood STAR Program work in greater unity with other city departments and ufility service providers? The goals of these different govemmental, corporate, and non-profit players are often the same. Perhaps it is just a matter of time lines or different visions that keep the parties from discussing plans and maldng decisions which are mutually informed. The Neighborhood STAR Program has an important opportunity and responsibility to work with the numerous players in order to make Neighborhood STA R proj ects and programs as successful as possible. Recommendations a. Imptementation There are many factors that have slowed the rate at which projects aze implemented. Nevertheless, Neighborhood STAR projects are being completed. The majority of Neighborhood STAR participants did not raise concerns about the Neighborhood STAR Program slowing their progress or failing to assist them in some identified manner. Most of the organizations acknowiedged weaknesses in their own groups which slowed the implementation process. Although the Neighborhood STAR Program did not create these weaknesses, it is in the interest of the program to assist the organizations to implement their projects. The most important thing the Neighborhood STAR Prograzu can do to sgeed 'unpiementation is help � the recipients identify their own strengtbs and weaknesses. Depending on the participant this exercise will vary, but it will be required of all types of projects whether they are individual businesses, community improvement projects, or community-led loan programs. The application t can ask questions to ensure that the projects aze not only useful but that there are people on many ]evels who aze committed to seeing it through as quickly as possible. The pro}ect ideas must be � F�� f fresh yet addressing an ongoing concern—a concern that has reached critical mass . A plan for tke project should be required. It will ask for a thomugh and candid assessment of the organzzation or entity's abilities to catry offthe project. It wili identify possible impasses and offer contingencies. The plan can not be capricious or whimsical but must be grounded in the unwavering, overt, and voiced needs of the residents. The plans must be predicated on the involvement of broad-based public participation. This process has the drawback of being slow, but if done properly most of the deliberation should occur before the funds aze actually awarded. After the awazd is extended the recipient should have sufficient will and community support to implement the project. b. Use of STAR Loan Money Another short-term strategy issue which watrants a recommendation is how to encourage use of the Neighborhood STAR loan money. The Neighborhood STAR Program must requn that when an entiry is awarded grant and loan money ii must use both forms of award. If the participant wants less loan money the grant award must be adjusted down the same rafio. When the Saint Paul City Councii determines the amount of grant and loan mix that will be awarded there should be no changes unless there aze extenuating circumstances. When participants begin to use the money they must be rennbursed in accordance to the mix. In a bid to get loan money out, the Neighborhood STAR Program should also make it cleat that no more money will be awazded to a participant who applies in a later cycle until certain standards of progress have been met c. Multipie Year Development There were two short-term issues highlighted earlier wlrich involve multiple year developments and cooperarive developments in a neighborhood. The mulfi-year developmeats have been occurring through the Neighborhood STAR Program but not in significant numbers. The prograni shouid continue to set a side a designated amount of funding for this type of development. The possible drawback with this development approacfi is that most ofthe applicants do not have the capacity to facilitate a project large enough to require multi-yeaz funding, or if they do, they aze using other funding sources. However, as community organizations and other groups get familiar with the Neighborhood STAR Pzogram and understand the opportunities it can offer them, multi-year development will become a reality. d. Cooperative Development The last short-term issue concems cooperative development within a neighborhood. Cooperative development was identified as an objective for the Neighborhood STAR Program after the program was first established. A cooperative development in this case would be a moderate mixed use development which would include compatible residential and commercial uses. Because of zoning requirements this type of develapment may have strict limits on where it cotild be located. The Neighborhood STAR Program should identify possible sites for tIus type of deveIopment, consult with community organizations, and meet with residents in the area to see if sufficient will e�cists in those neighborhoods to plan and implement cooperative developments. 22 � � , � � � � L� C � � � � � � t� �� e. Neighborhood Pianning In the long run the Neighborhood STAR Program should aim to bring the neighborhoods of Saint Paul together in order to make the highest quality revitalization decisions possible. In order to bridge the gaps the Neighborhood STAR Program should act as a conduit between the neighborhoods. Creating Iinkages and c��cra�ning them will depend on communication, cooperation, and the development of a shared vision. The Neighborhood STAR Program which is a chiefly entrvsted with the opportunity and responsibility to spur revitalization in Saint Paul neighborhoods must identify possible neighborhood cooperation and foster the coordination which is already occurring. An exampie of what is happening in the co�nunity to enable cooperation can be seen in the Hamline-Midway area. Four distinct yet related groups are coming together to discuss a common vision and strategy for the vicinity in the context of the medium- and the long-term. Although these groups (University United, H-MARC, Hamline-Midway Coalifion, and Midway YMCA) aze not faz-flung they represent varied perspectives. The STAR Program should consider the findings of groups like this in order to awazd funds to projects that reflect the interests and concems of larger subsets of citizens than those from a singie neighborhood organization f. Development of New Housing From a land use perspective the vast majority of Saint Paul has been developed. As a result the same development opportunities are not available here as in exutban areas. Redevelopment is often the only oprion for inner city development. Because land in Saint Paul has been used for many yeazs, a significant percentage of underurilized acreage is polluted. The Neighboxhood STAR Program faces a challenge and an opportunity to create new housing options in this environment. Under the Metropolitan Council's "2020 Plan" Saint Paul must have a comprehensive plan. In that comprehensive plan Saint Paul must address new housing oppornznities in order to meet the needs of a burgeoning metropolitan popularion. In one notable project the Neighborhood STAR helped restore the uninhabitable property at 683 Hague Avenue: As a result of that revitalization twelve new housing units in the form of apartrnents are available. A non-profit organization, Project for Pride in Living Inc., manages that renovated property. As the Neighborhood STATt funds grow through sales tax collection and loan repayment, the STAR Pmgam will have the responsibility and capability to tespond to the housing requirements which have been placed on it. It will need to work with private developers and banks to accomplish this gargantuan task. Programs like the Coordinated Housing Investment Project will help establish important relationships between the City and private sector. These relationships will be critical in meeting the Neighborhood STAR Program's community objectives. g. Program Impacts � As stated earlier the Neighborhood STAR Program is a tool to facilitate urban revitalization, but it is not an end in itself. Through its "bricks and mortar" projects it will improve the space in which Saint Paul residents live, but more importantly it will help them enhance the intra and inter-neighborhood � relationships they already have. Moreover it will reinvigorate the relationships between city residents and business people with the construction and lending industries. Akeady there are positive signs that � 23 � the Neighborhood STAR funds are being matched on a Ievel greater than 1 to 1. Perhaps another action that could be considered in the longer-temi wouid be increasing the required match. As stated eazIier this seems to be happening anyway, but it would help maintain the roie of the Neighborhood STAR as a source of additional assistance rather than one of primary assistance. h. Inter-Agency Cooperation T12e last recommendation for tke NeigYcborhood STAR Program in tke tonger-term wouid be to enter into regular discvssions with Parks and Recreation, Public Works, uti&ty companies, and other selected parties about their plans and goals over time throughout Saint Paul. It is important that if the Neighborhood STAR Program eapects projects to solicit neighborhood i�ut that it too is willing to get input from other players including the public. Sometimes impmvements are conducted in an uncomplimentary maaner because parties simply do not talk. The interaction between parties is difficult aY first but will most likely pmvide for the best results and help ameliorate misunderstandings. SWOT Analysis of the Neighborhood STAR Program Strengths: Weaknesses: • Funds can be used for variety of • Program does not fuud project different development types (funds are adminisiration flexible) • Awards are made to a11 geographical • Perception that there is excess parts of Saint Paul regulation and paperwork • Broad base of community support • Recourse • The state legislature approved the tax • Maintenance issue considered only if it generates new City responsibilities • Funding mechanism is pay-as-you-go • Pmfessional staff and support aze available Exhibit 1.11 'rL! i � � � � � � � , f. � � !� � � � � � ' ag - i a� Opportunities Threats • Strong economy • Some organizations aze reluctant to use loans • Realizarion that revitalizarion could • Some project managers do not make help increase residence in Saint Paul their project a priority and in tum lower spatial expansion of the metropolitan area • Some neighborhoods are working • Lunited community involvement in together projects • Role of the STAR Program prominent • Ongoing maintenance of projects not as more responsibility devolves from addressed the national and state levels Exhibit 1.11 continued J. Conclusion In summation, the Neighborhood STAR Program is accomplishing its goal of revitalizing the City of Saint Paul by improving its homes, businesses, parks, streeiscapes, and community buiidings. Although the program is in its eazly stages, it has benefited from the cumulative Irnowledge and experience of its sponsoring department, Saint Paul Planniug and Economic Development. Given the state and locai regulations the program must follow, the Neighborhood STAR Program has been flexible in the manner that it serves Saint Paui taxpayers. The program is and has been committed to improving conditions in all Saint Paul neighborhoods. City officials and PED staff have maintained an open dialogue with Saint Paul residents and community leaders. The program is poised to work proacrively with Neighborhood STAR fund recipients to revitalize Saint Paul neighborhoods. 25 , � �J �� 1 1995 Neighborhood STAR Small Grant Program 95.002 Neighborhood & Senior Citizen Garden GrantAmonnt: $I5,000 , � Aurora/Saint Anthony Development Corp. Description: The objecrive of this project was to install water lines and fencing for three green spaces located at 707 Fuller, 741 Fuller, and 770 University. This project has created two training gardens. The green spaces aze located at 707 Fuller Avenue , and 895 Central Avenue. These gazdens occupy the entire width of the building lots and run the majority of the depth of properties. The garden spots aze fenced in and serviced by water. Raised flowerbeds are located in the improved properties in order to allow senior citizens easier access to ' � � � � � � � ' � ' maintain the plant life. Improvements to two of these lots were completed . Budgetary limitations did not pernut implementation of improvements to a tot lot at 741 Fuller Avenue. Comments: According to Ronald Pauline, the project manager, these gazdens have generated spin-off landscaping efforts in the neighborhood. Mr. Pauline indicated that the training gazdens provide a good environment to learn and share values. The geen areas haue created a sense of pride within the neighborhood residents. Moreover the spaces act as a meeting places that encourage intergenerational intenction. This pmject indirectly serves the entire neighborhood by beautifying the azea. In particular it serves the families and individuals that have volunteered to be part of the training program. The majority of the participants aze African-Amzrican. Fo� Asian families as well as two VJhite families have taken part. The age groups represented aze equally diverse. Contract Compliance: The gardens are located in the prescribed area between I-94 to University and Lexington to Dale. Ali of the participants in the gardening project also reside in this azea. The STAR contract was entered into May 1995. The physical development of the green spaces began ffie same month, and these verdant spaces were completed in 7une of 1997. Mr. Pauline indicated that the STAR funds had no impact on the amount of time in which the project was completed. The STAR funds were used to fence the properties. It was also used to provide water pipes and service to the lots. The money financed the gravel, soil, and lumber that made the landscapmg of the lots possible. The vegetarion for the project was donated. All of the expenditures went towazd 27 , � intended costs described in the contcact. Again the reason that all of the impmvements did not occur � was because the eapense of fhe two Iot impmvements exceeded the original expectation described , in the contract. The project did involve sweat equity. In fact a county program, Sentence to Service, wluch helps � individuals who are in transition fr a criniinal background, volunteered individuat participant's labor for the building of the raised flowerbeds. Although this initial labor was not specifically from the neighborhood, the continued success of tree project will depend on the efforts of vo2unteers from , the neighborhood. �� , � lJ � � � , � L� LJ r z8 � � , � , � , C J � , ' `� •• 95.009 Hamline Midway Greening/Park Accessibility Project Hamline Midway Coalition Description: GrantAwonnt: $14,425 The objective of this project was to increase investment in the area, increase access to Horton Pazk, and foster more stewardslup by using one to one matching gtants for landscaping. The project has two major features: the enhancement of Horton Park and the greening of the neighborhood azound that area. Horton Pazk has been improved with the addition of iwo raised flower beds, three new trees, an additional heavy-duty trash receptacle aud a handicapped accessible picnic table area. The flowerbeds are situated close to the walkways to enable senior citizens and handicapped individuals easier access to the raised beds. This not only allows individuals a better view of the flowerbeds, but it improves the oppornuuty residents haue to plant and nurhxre the beds. The Hamline-Midway Coalirion was not able to put in as many trees as they had intended because the City's Forestry department said that Horton Park had a sufficient number of trees. The neighborhood greening portion of the project was accomplished through grants to 89 residences. As a result of Yhe grants over 200 trees and numerous shrubs were planted. In order to participate in the greening part of the proj ect, residents had to attend a s�+inar which addressed different methods for making the greening possible. � This project helped the coalition make contact with the residents of the neighborhood. It gave the organization an opporhmity to benefit many households in the neighborhood with a moderate amount of resources. The community got more involved as a result of this project. Landscaping ' became a priority to the neighborhood. People began to talk to one another. In fact some friendly competitions arose in pursuit of the most attractive landscape. The project also enhanced the coalition's relationship with the parks and recreafion department. Moreover the project spurred � volunteer activity. Volunteer coordinator for this project, Mazk Granlund, organized citizens to make Horton Park more beautiful and accessible. ' , ' ' Most of the participants are young families. The majority of which are White, but there were some Asian and African-American households which participated in the neighborhood greening. In the Horton Park portion of the project the senior citizens from an adjacent housing shucture played a significant role. Additionally the Boy Scouts made a major contriburion of time, effort, and labor on the raised flowerbeds in the pazk. This project mostly services the residents of the neighborhood, but because of the public accessibility of the park the project could potential reach a wider population. Contract Compliance: The project serves the area from Lexington to Transfer and University to Pierce Butler. The park � and all of the unproved residentiai yards except one aze in this zone. The home outside the azea is adjacent to the boundary of this area. � � � This proj ect has occuned in phases because of the planting season . The contract was entered into on July 1, 1995. In 1995 ten homes were landscaped, in 2996, 40 homes went through landscaping, and in 1997, 39 more had landscaping done. The complerion times varied from one case to other but generally took less than one month. The pazk improvement was begun in 1996. It has not been completed. A sunken tool box and information l�osks will be instalied in the spring of 1998. Generally the budget was used for trees, bushes, planters, a picnic table, and a�ash receptacle. There are a number of reasons why the grazrt is not fully disbursed. First, Forestry would not allow the Coalition to plant more �ees in the park. Second, all participants wanting to get involved in the greeniag project had to attend a seminar . The coalition laiows of eager residents who did not attend the seminat, yet aze interested in the program. Third, the neighborhood is mosfly populated by moderate income worldng families who seem to fia�e trouble ma "m; �;ng the graut. In other words because of the grant match feature one would have to invest a$300 minimum to get $150 maximum grant. Many of the residents appreciate the pmgrant, but cannot or will not use it to its fullest ea�tent. Participation in both elements of this project has been present Uuoughout its implementation. Neighborhood residents have invested sweat equity into this project. Volunteer work has been critical to the success of tUis project. Comments: STAR is too staff intensive to accomplish without allocating pazt of the funds to administration. Homeowner: Joanne Freshwater of 1263 Lafond leamed about the greening project through the community newspaper. She says, "Its great." "There should be more projects like ttus." She thought the reimbursements took longer than is acceptable (2 months). Raised Flowerbeds at Horton Park � 1 � � � ' � •i 95.013 Child Care Espansion & Renovation Neighborhood Honse Association Description: Grant A.mount: $7,309 The objecfive of flus project was to provide space for a day care facility. C1ne room was to be upgraded for youth. A second was to be improved for toddlers. Two other rooms were proposed to be renovated and a food storage azeas was moved. This project converted a space for young children into a child caze room. This modificarion was , accomplished through the addirion of bathroom facilities, fistures, carpet, and the refinishing of woodwork. The second aspect of this project, which was completed, was the consolidation of the food storage area State inspectors had previously indicated that the storage arrangements were not 1 in full compliance with standards. The consolidation unprovement not oniy met state requirements but made operations of the food service easier. ' The expansion and renovation project helped Neighborhood House meet some of the demand for licensed child caze facilities in the neighborhood. With the help of STAR funds the project aiso , ensured that the food served to the children was safe during the storage period. The improvements created employment for 2 part-time employees. This project offers more residents of the neighborhood and lazger community a culturally appropriate environxnent for the care of their ' chiidren. Prospecfive parents who are wairing to enroll their child(ren) in the program feel more comfortable knowing that elements of their ancestral heritage will be honored. Another benefit which may be realized by this pro}ect is that it allows more people to work. In light of low f unemployment and in turn the high demand for employment, these newly available workers will � haue a beneficial impact on the economy. The child caze facility wilI serve 20 children and their families. The food storage aze wiil serve the 2Q new children as weil as serving the current 54 children in the caze facility. The population is diverse. The majority of those who participate are Afi or Aispanic. A few white children aze expected but no Asian children until an Asian teacher is available. Contract Compliance: The irnprovements occurred at the address described in the contract which is 179 E. Robie St.. The service azea for the child care site is the West Side of Saint Paul. The Mississippi River bounds it on three sides, west, north, and east. On the south it is defined by the Dakota County 13ne. Most of the children are from the West Side. A few are from elsewhere particulazly Dakota County. In those cases the families of the children generally had previously lived on the West Side and came back to the azea for child care because it was more culturally appropriate. 31 The comract for the project was signed on 7uly 27, 1996. The implementarion of the project began at that time. All of the capital improvements were completed by Jattuary 1997. On July 17, 1997 the state of Minnesota inspected the new child caze space and on flze same day approved it. The STAR funds aze fully disbursed on flus project. The money was entirely used on the renovation of the child care space and the consolidation and upgrading of the food storage area. Particulaz reimbursed expenses were counter tops, paint, cazpet, windows, a smoke detector, bathroom fixtures, wire shelves, and a walI mirror. The community did donate its time to the complerion of this project. The iTnited Way helped with the volunteer process. It introduced Neighborhood House to volunteers from companies in the community such as 3M, UPS, and Ecolab. The volunteers assisted with much of the e£fort and particulazly helped in restoring the woodwork. Comments: Ms. Fuller, the pmject manager, thought that the funds from the STAR prograui should be more freely and broadly applied to administration costs. Neighborhood House wauted to adxninister tize program by organizing the different jobs necessary to complete the project. They wanted to do this to save money that a general contractor would typically charge. Another concern that she raised was with tiie guidelines. She had a sense that they were being changed midway fluough the process and that they were heing made to apply retroac�ively. She understood this was a new program, and that it had some ctifficulties to work through, but she did not ttiink that changes midway through were fair or efficient. 32 � � ' lJ � ' , � � �g�l�� 95.015 Northeast Business and Development Center Northeast Neighborhoods Development Corporarion Description: GrantAmonnt :$15,000 The objecrive of this project was to cteate a space for the operafion of the neighborhood business association and a police substation . The storefront at 1545 E. Maryland Ave. was gutted and renovated. There were problems with water damage in the space. The problems were intemal and external. In order to ameliorate the situation the plusnbing was upgcaded, the rear door was weather- proofed and the roof was repaired. Next, partition walls were configured and a front service desk, kitchen and handicapped accessible bathroom were added. This project has allowed a po&ce officer to be stationed in the storefront. It has pernutted the Northeast Neighborhood Development Coiporation (NENDC) to be more accessibie and visible to the community. The storefrant provides space for community groups to meet and also is being used as a place to teach the English language to Hmong-speaking residents. The site also functions as an e�ibit area. Artwork by community youth has been displayed as well as design plans for the new Hazel Park NeigJiborhood Recreation Center. Although the new storefront is not verifiably associated with a reduction in crime in the neighborhood, it has in some cases reduced police response times. This is also enhanced by the fact that the officer starioned at NENDC has a bike . This more flexibie mobility option is available because the officer can store the bike at the center. The residents of the neighborhood are indirectly and in many cases directly serviced by the new center. The business associa6on itself is also served. Contract Compliance: The area served is coterminous with the projected service area. The area is north of I-94 and east of 7ohnson Parkway to the respecrive north and east borders of St. Paul. The Neighborhood STAR contract was signed July 25, 1995. The proj ect started August 1996 and ended December 1996. The STAR funds were used for renovation of the properiy. The funds were used fully for this effort but they may not haue covered as many needs as first expressed in the contract. There are records and receipts in the central file which verify the expenses incurred for this project. The reimbursements were for plumbing, elechic, generai remodeling, drywall, insularion, and carpentry. Contractually it was indicated that 300 hours of the sweat equity wouid be contributed to the project. According to Ms. Swenson, the amount of sweat equity donated surpassed 300 hours, but she said t�C� they were not given credit for the excess. Volunteers pmvided most of the labor. The children who volunteered created a mural for the wali of the center. Comments: Karen Swenson, the neighborhood association executive director, indicated that the STAR was important and helped in the pmcess of raising other funds. She also stated that the STAR Program is not useful the way it is being nm. She stated that it is not fair to all sections of the ciry. Case in point Ms. Swenson said no regular STAR projects have been approved in the Northeast section of the city despite need, merit, and a request for money. She said the niles changed after the fact. For example she submitted all the appropriate paperwork for a reimbursement which she received but than the City requested more paperwork. She said she fias no intention of completing the unnecessary additianal paperwork. She indicated that the additionat requirement was bmught about when Norwest was asked to monitor the projects. 3he said they changed the plan and that she shouid not be held responsibie for these additionai requests. Lastiy she thinks that it is initially unclear who holds the authority to make decisions about what can be done within the project. The STAR program encourages you to contact your account officer but they aze not empowered sufficiently to be of significant assistance. The power xesides in the coordinators. Ms. Swenson believes that the officers should be empowered. 3he sait3 that the Neigltborhood STAR coordinators shouid not assign accounts. Perhaps some other arrangement shouid be reached. According to the Neighborhood STAR Program's procedures the project accounts are assigned to the officers by PED management and not the coordinators. Service counter at Northeast Business and Development Center 34 , � [J �� l� j� .i 95.016 Open School Playground Independent 5chooi District 625 Description: Grant Amonnt: $10,000 The objective of this project was to create a playground for a public school which serves students k-12. It was planned to provide a safe and well-constructed area for the chiltken at the open schooi to play. The majority of this pmject has been implemented. Previousiy the Open School had an empty field ' available for outdoor fitness and recreation. Because of this project there are more acrivities in wluch the students and nearby residents can engage. The enhanced piay area is located on the north west comer of the properry at 90 Western Avenue South. The playground has an eight seat swing � set, two siides, and a dome shaped jungie gym. All of the equipment sits on a base of sand which is surrounded by lumber. Additionally a fuli size basketbali court with two regulation height goals , has been added for the older children. Between the playground and the basketball court a foursquare court has be located. There are srill plans to install two more basketbali goals and four park benches. 1 As a result of this project the Open School has been able to augment the variety of opfions offered thorough its physical fitness program. Indeed this variery has helped improve the program. Additionaliy the piayground has been a welcome expansion to the schools recreation facilities. It ' aliows children to experience improved recess activity. The neighborhood has also been impacted. There are not any playgrounds within ten blocks. This play area allows all segments of the neighborhood convenient access to a well-equipped recrearion area. ' This project serves the Open School and the surrounding neighborhood. Other educational and care facilities make use of this improved space. Jennifer Diederich, the project manager, said she knew ` that the neighborhood Montessori, the Salvation Army, and a few day care centers use the Open � School Playground. In addirion numerous residents of the neighborhood use the recreation facilities. � The playground serves 300 kids from the Open School, 40 from Montessori, and about 15 children from community day care centers. Contract Compliance: Ms. Diederich indicated that the playground serves the westem edge of downtown Saint Paul. She said its service area extends from Kellogg to St. Clair and from I-35 to West 7th Street. The project was implemented on the site it was originally proposed. The STAR contract was sia ed in August 1995. The project began in September 1995 and is expected to be completed in October 1997. The STAR funds were used to purchase lumber, two goose neck basketball poles, 4 backboatds, sand, a jungle gym, and the asphalt basketball court. The funds have not heen entirely used. Upon. 35 looldng at the reimbursement forms far this project it appears that the section for sweat equity was not completed properly. When this component is added in, the project valne increases and the amount of re"unbursement possibly increases. As of September 1997 a STAR coordinator worked with neighborhood staff on the problem. As soon as the match and reimbursement request is submitted the project account will be fully eacpended. This project involved at least a 30% sweat equity match from the Open School and its pazents. The volunteers essentially installed atl the features offhe playground with the exception of the basketball court and the aggregate field. Comments: Ms. Diedezich said that the match was tough. She also said that funding the pmject was difficult in light of the fact that the STAR program reimburses rather thau advances money far the project . Fund raising was difficult for the Open School. Everyone was burned out from the eaperience. Ms. Diederich not only had to ask pazents for their financial support and time but also their labor. After all this she does not think she was given full credit for all the labor that the parents supplied, and she had valued their labor below the acceptable hourly amount of $ l 0/ttour. Tn order to make the process cleazer and faster Ms. Diederich thinks there should be a book available that guides one thmugh the process step by step. She said the book could have cazbons in it so records could be kept for internal and external purposes. 36 Open School Playground 1 1 , � ' I_ J ' � ' ' �$- �a� 95.017 Reinvesfing in Tomorrow's Communiries People's Network of Minnesota Description: Grant Amount: $15,000 The objective of this program was to provide up to $3,000 grants to homeowners in the Railroad Island Area. This program has not gotten under way. The Peopie's Nerivork of Minnesota (PIVNn distributed flyers in October of 1996, but only five parties made serious inquiries into the project. The current project manager, Vang Moua, said there were a number of reasons he thought that progress had not occurred. First, the residents do not want to take out loans to leverage the grant especially if they must use their house as collateral. Another impediment is that many residents have hi� debt rarios, so they cannot get the leveraging loan. Srill another barrier has been the fact that some of the interested parties were senior citizens and did not have sufficient income to take out a loan for the necessary matching portion of the program. Mr. Moua believes that the size of the individual allotments per house described in the contract of $3,000 needs to be revised to $S,OOQ. Ae thinks this amount will be more attractive to potential participants. The final hold up has been the bid process. He said many of the interested parties think the bid proposals are high, and they continue to search for lower cost bids. Addresses of some potential participants: 745 Bradley St. 765 Jessie St. 585 Payne Ave. Because no improvements have taken place as a result of the STAR grant project, Mr. Moua said there has been no achievements in this project nor any unpact on the larger community. Cunently nobody is being served by this ptogram. The few potential recipients are families that occupy the targeted homes to be unpmved. In ]ate July 1447 the PNNI will distribute flyers again to inform the neighborhood about the funds available through the STAR grant to the PNM. Although nobody has been served, the PNM is still targeting the geographic area that it proposed to serve in its contract. The area is Bush and the railroad on the north and west, Upper Swede Hoilow on the east and 7th St. on the south. There is no progress schedule as such because no improvements have been made or even started. Mr. Malo believes that if the allohnent per house is increased that it will generate more interest in the program and in turn something will be accomplished. STAR funds have not been utilized yet, but Mr. Malo believes this will change after the n�i flyer campaign. 37 �l Mr. Malo believes that recipient participation in the improvement will be limited because many of ' the interested parties are elderty and not able to exert themselves. Other hindrancas to participation � aze lack of volunteers and lazge amounts of time demanded from potential recipients. LJ ' � ' � � , � � cf�'.? ' i �i lj � � ,' � � � ' � q�- cag 95.019 Riverview Area Streetscape Design Improvement Riverview Economic Development Association Description: GrantAmount: $14,000 The objective of this project was to restore murals and 20 metal art fabrications in Riverview. The project was to compieted using the skills ofyounger peopie with the help of local artist. The project has restored five murals. These murals are over 20 years old and depict Latin American themes. Additionally the project included the design, creation, and placement of 20 signs which idenrify and celebrate the Riverview community. The signs display the sun over the Mississippi River. Two of the original three artists participated in the effort. Another two mentor artists were added to the project. Each mural was assigned two students. The students acted as assistants in the restorarion effort. The students were selected from a program called Teens Networking Together (TNT)• Anne Briseno, project manager, said that this project has acted as a catalyst for other projects. Part of the spin off was a new mural on the �terior wall of El Burrito facing State St. She indicated that the project has retained and restored the continuity of the community. The project has instilled pride in the community. There have been no cases of vandalism or theft connected with this project. This project services the entire community. Its benefits are visible, accessible, and convenient to experience. As far as direct impact, the student population seemed the most fully served by the project since it allowed and solicited youth involvement. Ail the peopie directly involved were from the West Side of St. Paui. Approximately 50% were Hispanic. ContraM Compliance: The area served was coterminous with the small area plan. The boundaries aze Concozd at the entrance of Highway 52 on the south to Wabasha at the north end and Wabasha at Plato to Wabasha at Concord St. and Robert at Plato to Robert at Concord St. The Neighborhood STAR contract was signed on July 25, 1995. Within 5 weeks the project was complete. The STAR program had no effect on the rate of complerion. The actual budget was used for equipment, brushes, the signs, artist fees, and the charge for the Deparlment of Public Works to hang the signs. In particular it cost $90 per sign for installation. The central file does show a reunbursement request form, and all the necessary receipts. This project involved a significant amount of sweat equity. 1`he logo for the signs was developed by one of the artists. The designs were presented at a public meeting and a vote for the best design was cast. 39 ' 19.95.022 Grand Avenue Summit Beautification Grand Avenue Bnsiness Association Description: GrantAmount: $I5,000 ' The objective of tkus pmject was to ereate a small pedestrian plaza and meeting azea on Grand Ave. AdditionaIly a bike rack was to be pIaced along Grand between Oakland and Ayd Mill. This project has been implemented. Fifteen szngle and double bike loop racks have been installed on Grand belween Dale and Le�ngton. Additionallq a small brick plaza has been created at the corner of Graud and Victoria with benches and plants. Some planters have been placed in front of businesses along Grand as part of this project aLso. The community and businesses have been positively iffipacted as a result of tltis project. First the impmvements of this project make the area more attractive and conducive to commercial actavity. Second it has provided safer and more abundant bike parldng. In an area with limited parking this adc3irion helps make the commercial strip more accessible . Becavse of this project the population of the azea is better served. In particulaz it helps cusfomers, business owners, emptoyees, residents, drivers, and bicyclists. Depending on the day and time of year this corridor serves 5,000 to 30,000 people a day. Contract Compliance: The placement of fhe bika racks followed the designation in the contaact. All improvements were to be located between Ayd Mill and Oakland. It was originally proposed that alI the benches be distributed along Grand Later it was reconsidered and the benches were placed in the brick pIaza. The contract was signed on October 27, 1995. The work on the project began in November of 1995. It was completed by November of 1996. The project took three months longer than anticipated. There were a number of reasons why the project took longer. First, tke lead volunteer had a serious illness in the family. Second, there was some difficulty getting multiple bids. Another delay was the bike rack pernut procedure of the public Plaza at the comer of Victoria and Grand I� [�17 �. �� l�B � works department. Beyond these delays the Gtand Avenue Business Associafion (GABA) had trouble soliciting donated labor and retaining key staff: � The STAR funds were used to buy five benches, fifteen bike loop racks, and bricks for the squaze on the corner of Grand Avenue and Victoria Street. � Most ofthe work on this project was contracted out. Sfill volunteers did donate their labor in order to meet the adxniuistrative requirements of the project. � � l�� 41 � 95.024 Thomas-Dale Handyman Fix-Up Project Thomas-Dale Biock Club Grant Amount; $I5,000 � Description: The objective of this project was To identify and repair the exteriors of owner occupied senior citizens' homes. The repairs were to be limited to painting and maintaining the safety of resident access to their homes. This project has provided safer access and aesthetic improvements to 12 homes in the Fmgtown neighborhood. A.s a result of the work seven retainiug walls were installed, a handicap ramp was added to the home of a physically challenged individual, stairway accesses were improved and in some cases replaced. The addresses of the properties aze as follows: 803 Thomas Ave. 597 Charles Ave. 967 Chazles Ave. 390 Edmund Ave, 809 Thomas Ave. 958 Sherburne Ave. 653 N. Westem Ave. 550 Edmund Ave. 844 W. Miunehaha Ave. 840 W. Minuehaha Ave. 682 Westem Ave. 81 Z Van Buren Ave. The proje�t has helped motivate the residents to improve their homes. Johnny Howard, the project manager, said, tlus project has changed the `whaYs in it for me attitude that was in the neighborhood." Now people will not only work to impmve their own properry, but he tlunks overall volunteer activity is on the rise. There is a spin-off effect, and it can be seen throughout the neighborhood. One resident adj acent to 809 Thomas Ave was so inspired by the improvements fhat she stazted landscaping her yazd. Another grant recipient Lily Hollisworth says she Iikes the change that the retaining wail has made. "It looks better, and it is safer." Senior citizens are primarily the recipients of the grant funds through this handyman fix-up project. Seven of the participants aze Wlute, three aze African-American, and two aze Hispanic. Contract Compliance: All of the improvements occurred between Westem Ave on the east, Lexington on the west, Fierce Butler on the north, and University on the south. This is caterminous with the contractually designated zone. The STAR contract was entered into June 30,1995. All the progress on the improvements occurred within three months, from June 1996 to September 1996. Because the STAR program issues � 42 � � � � �� reimbursements rather than prior payments, it slows the process of getting the necessary materials. The Thomas-Dale Block Club is already strained. When they provide up-front costs out of their program it jeopazdizes their other services. Addirionally because they can oniy divert a small poriion of funds away from the club the process of neighborhood improvement is slowed because after complefion of the first improvement they must wait to get reimbursed before starting a second home improvement. � The STAR funds went entirely to unprovements wluch make the residences of the Frogtown Area safer. Through the project, movement in and out ofthe homes was made easier. As a result not only were the resident yazds safer but so were the sidewalks. The new retaining walls will keep excess � debris off the sidewalks and will provide for safer passage. The level of public participation has been significant through this process. The Thomas-Dale Biock Ciub has organized community participation in the program. Volunteers haue helped to get the projects completed. Because of this feature of the project, more improvements have been able to � occur despite scarce resources. � �� L] 43 � 95.026 Stutzman Block Initiative Upper Swede Hollow Neighborhood Association Description: The objective of this project was to renovate the Stutzman Bldg. The monies were to unprove its blighted appearance. As a result the project was to provide commercial space, residentiai rentai units, and the Upper Swede Hollow Neighborhood Association office. (I7SHNA) This project included the renewal of part of a commercial space in the Stutzmann Building at 725 E. Seventh St. The commercial space is currently leased to the Swede Hollow Cafe. Tke first phase of rehabilitation involved the gutting of what was a residenrial unit to make way for a restaurant. In thai pmcess most ofthe features of ttie space were replaced such as the electrical system, the air conditioning, the store front, the kitchen, and a bathroom wluch complies with ffie Americans with Disabilities Act. Tlus rehabilitation project kelped provided the Upper Swede Hollow Neighborhood Association with an opportunity to demonstrate to the neighborkood that speciaiized, nonfranchised commercial activity is viable in the Dayton's Bluff Area. It permitted tke Association a chance to let local residents see how historical preservation is possible and even useful. It also generated two fu11 time and 2 part-time positions. Residents of the neighborhood demonstrated, as well as, witnessed the commercial strength of their neighborhood. Cazol Cazey, the pmj ect manager, stated that there were spin-off benefits. For instance a redevelopment project is happening near the cafe at the intersection of Maria and Sixth. Another spin-off is that the cafe is using some ]ocal inputs such as Toasted Bread products and produce from gazdens in the neighborhood. The cafe serves a diverse population. About half of the customers live in the neighborhood. They make up the majority of the non-meaitime transactions. The other half is generated by people who work or go to school in the area. The food service facility functions as a meeting place and a forum for casual social exchanges. Contract Compliance: The STAR contract was entered into on JuIy 26, 1995. This first phase, the initiative, started April 1996 and was completed in July of 1996. This was withiu the period described in the coniracT. Tke 1995 sma11 STAR funds were used to unpiement the capital improvements to the property described in the first paragraph. Scope of work statements and receipts aze present in the centrai file. They indicate tl�at STAR funds were used to pay for piumbing, etectrical, heat and air conditioning, and other general contracting eapenses. This project match involved $3,630 in labor and $3,000 in goods and in-ldnd services. Much of the participation came from Sentence to Service which uses the labor of criniinal offenders to improve tfie community. GrantAmount: $15,000 , � � � � � � � i� �� Comments: Ms. Carey thought the smali grant process was easy. She appreciates how the STAR Board spreads the awazds throughout the city. She tiunks that because of this arrangement that her small applicafion are more successful. Ms. Cazey also had a concem about the amount of time it takes to get a reimbursement. She said that it took over 60 days to get here first reimbursement. In her case it was all right because the project had interim financing. � Swede Hollow � Cafe � � � � � 45 f � 95.027 Walker-West Music Academy Music Garden WaIker-West Music Academy Description: GraufAmouu�$I5,000 � The objective of this proj ect was to create a small gazden and a performance azea. STAR funds were designated for landscaping, earthmoving, and lighting/electrical. This project has been unplemented. The building lot to the west of 777 Se1by has been developed into a music garden. Formerly flvs lot was occupied by a deteriorated structure. The properiy went into taac forfeiture, and the city of Saint Paul assumed control. The city proceeded to raze the building on the property. The city has extended a rent free 10-year lease to the Walker-West Music Academy on this adjacent forfeited properly. In the front portion of flte property there aze perennial shntbs and trees which line a path and four cutoff coves. These circulaz coves are being developed in order to set up musical instruments according to their fanuly type. In the reaz of the lot the area has been maintained as open space in order to stage concerts. The space is partially occupied by a raised wooden deck. The stage was not purchased using STAR funds. There is no lighting or electrical service at the music gazden. Because of ttris project the musicians at the academy have a place to play outdoors. Mr. West, the artistic director, is hopeful as tfie garden and stage are improved that a musical series will be established over the summer season. The community has been provided with a beautiful area to enjoy the gospel aud jazz music of the academy says West. The gazden serves the members of the academy as weIl as the local community. The academy's total enrollment is 500. Mr. West said although the community now appreciates the garden from a distance better accessibility will be developed into the garden and actual direct use of the garden area wi11 increase. Contract Compliance: The green space was established on the Selby lot as described in the Neighborhood STAR contract, Most of the people who use the garden live or work in the area between downtown on the east, Lexington ott the west, I-94 on the north and Grand on the south. The contract was entered into October 1, 1995. The work was started and completed September 1995. Nothing hindered the rate of completion. The project was completed within the contract time specifications of 8/1/95-1 Ll/95 but it appears that the stage landscaping set ta be fmished by 6/1/96 never occurred. The STAR funds wera eannarked for the plants, design, landscaping, and paths. .,, � � � q� � la� There was volunteer labor provided by academy members. Initially 35 members volunteered to assist with the project. Another 20 volunteers showed up that were not scheduled. Beyond volunteering rime and labor some participants volunteered to provide lunches for everyone. � City staff requested paperwork for reunbursement for ttus project several times. Mr. West attributed the delay to the fact that they did not have enough administrative staff, and that they lost the staff member who was working on this project prior to the compietion of the paperwork. It was also � expressed that the effort to get matching funds was difficult. Mr. West seemed to tl�ink that much more work was necessary to make the garden truly useful. First, he thinks that an entrance shouid be made from the parking lot of the academy into the garden. Because of elevation differences a set � of stairs or ramp would be necessary. Second, he thinks that white lights should be run through the trees on the western side of the property. Third, Mr. West believes that a retractable cover should be added to the stage to keep the sun out of the musicians' eyes. Lastly, the artisric director said that � seating is necessary for concerts and should be added to the open space in front of the stage. � � � � 47 �l 95.030 WORC on Bikes Workers Organized to Regain Confidence Description: The objective of this proj ect was to renovate space in a house to serve as a bike shop. Its objecfive was to place bikes on the street for the community of use. This project is achieving a goal of teaching work habits to young people in the Frogtown neighborhood. Currently 12 young people work at the bike shop, They are leaming to repair a wide variety of bicycle types. Additionally they are leaming other aspects of the business such as sales, inventory, customer service, and labor nkwagement. During a visit to the shop, all ofthe participants were working in an indixstrious and disciplined manner. The project is meeting its objective of training young people for succeeding commercial opportunities. Two of the former bike shop workers have gone on to work at commercial bike shops in the azea. Physically the building has not been greatly renovated, but they ha�e it functioning pmperiy for this designafed use. They have fout repair racks for the bikes, a long fhe walls they have racks to store bikes, a service counter, a cash register, numerous bikes, and the necessary repair tools. Internally the project has allowed the participating youths an opportunity to develop their talents. It has provided bikes to the communiry at a reasonable price. Moreover the project has placec3 yelIow bikes in the neighborhood in order to increase mobility and decrease the rate of bike theft. Its presence is positive in the neighborhood. There are frequent cases where a child will accompany a guardian to the adjacent supermarket, an@ the child will end up visiting the shop while the adult is shopping. Beyond offering this unique opportuniry to develop young peoples' tatents, this shop provides affordable bikes and service to this less affluent neighborhood. The people served are numemus. They not only include the customers but also the workers. The customers and workers are East Asians, African Americans, and Whites. The zone served is Grand Avenue to the railroad and I-35E to Lexington. Contract Compliance: The project to convert the space at 749 N. Milton into a bike shop started in January 1996 and was completed and opened in May 1996. 17us happened with private funds which can be reimbursed with STAR fiznds. Tfie Neighborhood STAR contract was entered into July 26, 1995. The STAR funds haue not been utilized directly because they have not been disbursed, but according to Mr. Williams the reimbursement request had been mailed to the city in 1996 and they heard no retum response from PED. I advised them that the paperwork should be resubmitted. As of August 29 no reimbursement request had been received from WORC. PED staff sent the appmpriate request form with offers of assisYance but have gotten no response. GrantAmount: $3,180 � � .; �� f�8 The neighborhood has been involved with all aspects of this project. The customers and workers � come from the neighborhood. Additionally the Center for Employment Training (CET) at the local high school has given assistance to the program. � The prograui director, Andy Williams, seemed positive about the STAR program despite not receiving any reimbursements. � � � � � � � � 1 .. �� 95.031 The Espress Bike Shop The Youth Express GrantAmonnt: $10,340 � Description: The objective of this pmject was to create a bike shop that would provide the community with physical unprovement, economic development, and opportunities for young people. STAR funding was designated for renovations to the shop. The bike shop project has been fully implemented. An abandoned service station at the corner of Snelling and Marshall, 234 N. Snelling, has been converted to a bicycle repair and sales store. The store is chiefly staffed by young people ages, 1S and 16. The space is leased from Liberty Bank at a nomivai monthly rate. According to the project manager, Randy Treichel, the former gas station was a disaster. Youth Express gutted the buitding. Tlris was necessaty because of water damage and years of acciunnlated grime. The original building kad an office and two garage bays. The refiubished building maintained this same office space, converted one of the bays to a showroom, and the other bay to a repair shop. At this site, discazded bicycles aze restored in preparation for sale and customer bikes aze repaired. Through this project Youth Express has been able to offer young people an opportunity to leam general and more technical job skills. T'he skill azeas that the bike shop tries to build aze: repair, accounting, sales and customer service, advertising, and business administration. According to Mr. Treichel the strength of tYris project is the fact that each of the young trainees gets e�tra time and direct attenrion from staff. This is something that most entry-level service positions do not offer. The efforts wluch aze invested in the young participants not only make them self-reliant and assets to the labor force but more complete citizens. The neigilborhood has aiso benefited as a result of the establishment of this bike shop. The shop has found a niche in the low-end bike sales and repair mazket. The community is reaping the benefit noY only through the quality service provided at the store, buf through the training opponunity that the young people are getting. The vacant properry that the shop sits on is no longer a drain on the avenue. In fact a driv�tUrough coffee shop has been set up in the parl�ng lot. Activity like this recoafirms the positive impact that this community bike shop has. Over time there have been 25 trainees in the program. Currently thete aze 12. Of that number ten are ma1e, and two aze female. Racially/etanically seven are African- American, two are Wlute, one is Hispanic, one is Asian, and one is not reported. Most youth participants meet federal at-risk criteria and qualify for wage subsidy through the St. Pau] Center for Employment and Training. Participants who do not qualify aze paid from Express Bike Shop sales. The project has served many people, most of wkom aze living in Saint Paul. Since its inception the shop has restored over 700 bikes for later sale, and repaired numerous bikes for atea residents. In fact repairs cunenfly comprise a larger portion of the revenue generation than do sales. � G�1] � � _� � � � � � � � � � � �S- la� Contract Compliance: Ttie bike shop is located at the site agreed upon in the contract. It serves Distact 13 and sutrounding azeas. The Neighborhood STAR contract was entered into July 26,1995. Construction for the commercial rehabilitarion began in April 1945 and ended Iune 1995. The Neighborhood STAR Program's process did not unpede the progress of the development, yet the cyclical nature of the program made it more difficult to access funds eariy in the construction season. The STAR funds specifically paid for sheet rock for the walls, elechical work, windows, and interior and exterior windows. The central file verifies these reimbursable eapenses. Other work on the site was conducted by the current owner and the former tenanYs parent company, Amoco. The owner, Liberry State Bank, repaired the roof, and Amoco purged the azea of contaminants. According to Mr. Treichel the roof is leaking again due in part to unseasonably large amounts of rain. He is presently attempring to get funding to properly repau the roof. There was community involvement during the unplementation phase of this project. Axea youth and others cleaned and gutted the vacaterl gas station, They also painted the interior and exterior of the buiiding. Time and materials were donated by local businesses. Comments: Kurt Oldham, store manager, indicated that this venture aliowed him to use his college majot in education to train youth in meaningful ways. Because tranung is on the job as we11 as off Mr. Oldham can guide the participants until both he and the trainee feel confident that the requirements and skills of the job are well understood by the young person. Falaq, an associate, said that he liked the environment at the shop. Although his favorite job at the shop is sales, he also gets something out of leaming and doing all the different jobs. Falaq had worked for Youth Express during the suminer of 1996. He worked in the Youth Express lawn care business. Because of his commihnent and iniriative he was invited to be a trainee at the bike shop, and he gladly accepted. He said this job allows him to learn more things, and he likes that. A1 Martin, assistant manager, said he found out about the bike shop opporhuxity after recently coming back to Saint Paul . A1 had been out of town for a while, and he wanted to work with bikes and youth. This position has given AI a chance to fulfill that goa1. 51 � � � � � � � � q�-ia� 1995 Neighborhood STAR Grant and Loan Program 95.10A Aesthetic Uplift and Senior Citizen Assistance Anrora/Saint Anthony Bevelopment Corporation Description: Loan Amount: $100,000 The objective oftlus program was to provide approximately lO loans up to a maximum amount of $15,090 at 2°!o interest for exterior nnprovements between Dale and Crrotto / University and St. Anthony. This program has improved four homes. The nnprovements have been primarily to the exteriors and include new roofs and porches. Each of these improvements has been impiemented. An additional home improvement is pending. The project will unprove at least five more homes, and the program manager, Ronald Pauline, is pursuing that currently. The addresses already served are: � 649 Aurora Avenue 647 Fuller Avenue ,� 655 Central Avenue 713 Saint Anthony Avenue � � � According to Mr. Pauline this STAR project has stabilized the neighborhood housing market. It has enabled the residents to make an invesiment in their neighborhood. This project is serving four households directly with the improvements. The participants were characterized by Mr. Pauline as long term residents. Atl are African-American. Contract Compliance: Every home that was assisted was located in the contractually designated eight-block area. The boundaries of the area aze Dale on the east, Grotto on the west, University on the north, and St. Anthony on the south. The STAR contract for ttris program was signed on March 1, 1996. Each of the improvements had a different rate of completion. On average the prepazation process for each amprovement was four months whereas the speed of construction and complerion was about 3 months. The STAR funds have been used for facade improvements. Aithough the entire allohnent for this STAR project has not been expended, Mr. Pauline says the funds will be e�austed by Mazch 1998. 53 The majority of the work has been done by contractors, but a few of the unprovements involve sweat equity. Comments: Mr. Pauline thought that administrative funds should be a�ailable as part of a STAR award. He also believed that tke City's servicing agent, Norwest Bank should be different. He tliinks that Norwest Bank should not directly receive the interest and priuciple. Besides charging fees for servicing the loans Nonvest may be benefiting in other ways. This program should mostly be dedicated to benefiting the neighborhoods. John Allen, the resident at the improved property at 649 Aumra Avenue, said the STAR Progratu is a great oppomwity for the neighborhood. It needed some spmcing up. 54 � , � � � � � � � � � � � � � �' i . i 95.113 Dayton's Blnff Neighborhood Housing Services STAR Purchase Program Dayton's Bluff Neighborhood Honsing Services GrantAmonnt: $9Q078 Description: The objective of this program was to provide gap financing to rehabilitate owner-occupied homes. The loans were not to exceed $15,000 or 120% of the appraised value after the renovation. The foYm of the loan was designated to be for 10 years, forgivable, and deferred. Dayton's Bluff Neighborhood Housing Services (DBNHS) has financed and rehabilitated five homes. Another home has been approved for gap financing a decision on the finai home is still pending. Besides marketing this program directly, DBNHS used real estate agents as a link in the effort to inform the public about the program.The agents attended a seminar which helped them understand the program and its requirements. Two of the unproved houses have been made possible through the marketing of real estate agents. However the primary contact point has been through DBNHS's loan outreach. Three of the rehabilitarion projects were less than $20,000, and rivo were more than $2Q000. Two of the shuctures went from rental status to owner occupation while another went from vacant to occupied. The completed homes are: 1016 Euclid 663 East Fourth 915 East Fourth 853 Mar aret 737 Wilson The project has given DBNHS a tool to service the community through the gap financing provided by the STAR funds. Because of the limited scope of the project and the fact that other housing program activities were taking place in the same azea as these projects, James Erchul, project manager, said he was uncertain as to the degree of spin-off benefits that could be directly atiributed to the 5TAR Program. Mr. Erchul aTso said that the success that his housing service has had enabled it to be selected as a participant in the Coordinated Housing Inveshnent Prograui (CHIP) STAR project. The DBNHS project has served five households, To this date all of the participants are White and are not seniors. Contract Compiiance: Ali of the recipients of STAR funds were within the projected area of Johnson Fazkway on the east to Mounds Boulevard on the west and Mississippi River Bluff on the south to the Butlington Northern Railroad Corridor on the north. The contract was signed in March 1996. It is set to expire in Mazch 1998, Most of the projects have been accornplished during the building season of 1996. Each project is taking about three months. One of the projects on Fourth St. was delayed because the proj ect was waiting for a custom door in 55 order to comply with the reqnirements of the heritage preservafion district in which it is located. The STAR program ffid not affect the rate of rime that the projects took. Funds were used for facade, electrical, and plumbing improvexnents. The facade improvements included ruofs, porches, windows, and siding. Owner's sweat equity was not aliowed during the construction work because the first mortgage lenders did not want to allow it due to the inherent risks involved. Comments: Mr. Erchul believes more of the funds in the STAR progratn should be atlocated as grants. Moreover the size of the gants should be increased. This would allow the progam to more meaningfully impact a target azea. He aiso ttrinks that tfie loan funds could be set up more fle�bly. The temis of the loans are too stringent. When he considers the regulations that aze placed on city monies, he believes that any benefit from lower interest rates is mitigated significantly. Refurbished Home In Dayton's Bluff �� t� 45.115 Payne Avenne Commercial Gateway East Side Neighborhood Development CorQorarion Description: Loan Amount: $80,000 The objective of this program was to provide low interest loans for interior improvements, facade grants, rent forgiveness, and redevelopment of blighted building. This project has not been implemented. During the 7uly 1997 STAR interview with East Side Neighborhood Development Corporation (ESNDC) the amount and extent ofproject preparation was uncieaz. Mike Anderson, the director, indicated that the project will be executed as set forth in the contract description. Mike Anderson said the STAR program was a welcome addirion to financing options available to non-pmfits. He said it was a useful program that enhances ESNDC. For the lazger community STAR has renewed confidence. The population who is eapected to be served includes an Asian, a Hispanic, and 7 White applicants. Of those applicants 5 are 50% above the poverty line, 3 aze 50%-80% above the poverty line, and i is 80% or more above the poverty line. Contract Compliance: The geographic area served has coterminous boundaries with the region set forth in the contract. The � area is Maryland on the north, Arcade on the east, the Burlington Northem Railroad on the south, and Payne on the west. � Mike Anderson did not offer details on the completion fime of the project but as of 3uly 1997 nothing has been completed as a result of the funding of the ESNDC Payne Avenue Commercial Gateway project. The fact that over 95% of the original loan awazd has not been disbursed is � because ESNDC's staff believes that there are more agreeable incentives offered through the State and other government programs. The $1,200 of STAR funds that had been used were used on a fee. The reason that this proj ect has not been implemented is not only the amount of interest charged, but �; according to Mike Anderson under the current STAR program CDCs such as his must take responsibility for the repayment of the loans that they provide to individuals and businesses. He said � if a business defaults on the loan, it becomes the responsibility of the CDC to repay the loan. The CDC has no assets to speak of and has no ability to make good on the obligarion. LJltimately the characteristically high risk of the business loans and inability of the CDC to back them up causes I the CDC to avoid using STAR loan funds. He felt that the terms of the 3TAR loans generate disincenfives. He also said that he had heard that the progtam was set up in a way that would enswe failure. Then pethaps more of the money would go to the civic center project. Finally Mr. Anderson � thought that the city should assume the risk for the loans ESNDC makes. 57 � In regard to the STAR program generally Mr. Anderson thought: • it should be more focused on commercial development • stimulate the neighborhood commercial markeY � � • operate more like a bank yet respond to all sections of the city fairly, � be more flexible about project changes and yeaz round access to funds(limit or eliminate cycles)make it a continuous and continuing program • make funds more attracrive by creating better terms and incentives � • reduce the liabilities potentially visited on intermediate organizafions like CDCs. � � � � � � � � � �� m � � � � � � � � � � � � lJ 9g- i ag 95.116 Strong Neighborhoods=5afe Cities East Side Neighborhood Development Corporation Payne/Phalen District 5 Planning Council Description: Grant Amonnt: $10�,000 Loan Amount: $ 35,000 Seed Capital: $ 25,000 This project had three components. The first was home improvement grants. The second was commercial loans. The last component was the construction of a gazebo in Sue's Park. This project has been partially implemented. One business was assisted through the seed capital fund program. Two homeowners were helped through the home irnprovement grant program. The gazebo was not built. It was expected that 1-5 business would be heiped through the seed capital program. Aithough one business was served, only a small portion of that fund was used. The loan money which was expected to help businesses ixnprove their space and for new business to move in was not used. The grant recipients aze located at 700 E. Cook Ave. and 708 E. Cook Ave. The seed capital recipient is located at 790 Case Ave. Most of the loan funds may be retumed, Not much of the grant funds have been used, but the East Side Neighborhood Development Corporarion (ESNDC) intends to make a concerted effort to get all the funds out. 7n addition to the two grants that have awazded in the community, 9 more have been approved, and 10 are pending Because of the limited use of funds in this project the benefits of STAR money mostly accrued to the actual grantees or bonowers. This project did �ot provide the catalyst that was expected from STAR projects. As indicated above there were three fund recipients in total. The two homeowners aze white, and the business owner is Asian. Contract Compliance: Ali of the funds were used within the designated contract azea. The contract azea is from the comer of Edgerton and Whitall: north on Edgerton to Maryland, east on Maryland to Mendota, south on Mendota to Geranium, west on Wells to Payne, south on Payne to Whitali, and west on 4Vhitall to Edgerton. �, The conttacts were entered into at different times for each component of the project. The business portion began in Apri11995. The home improvement component had a signed contract in April 1996. The gazebo contract was initiated in February 1996. The progress schedule has � not been met in the case of the gazebo. It was eapected to begin in April of 1496 and end November of 1996. It has not been implemented. The home rehab progress schedule was contractually stated to begin March 1996 and end February 1998. It appears that they will not � meet ttris deadline in 1998. Only part of that aspect of the project will be implemented. The business loan and seed capital aspect of the project have the same start and finish dates as the home improvement portion of the project. Once again this does not seem to be conforming to ' the progress schedule highlighted in the contract. Another significant delay of the project 59 stemmed from the fact that the financial arrazigements of the pmject were complicated, and it took longer to get the contracts signed as a result The STAR funds were used for exterior and interior home unprovement as well as for seed capital business improvements. The reason that the &znds were not fizlly disbursed is becanse ESNDC lost organizational capacity after many members of its staff Ieft the organization. Comments: Most of the feedback came from Sean Kershaw and Mike Anderson. This case has the same loan program concerns that were discussed in the previous account report (95.115) Renovated Home on St. Paul's East Side .1 � � � � � � � � � � � � � � � ��-�a� 95.125 H-MARC Exterior Renovation Hamliue-Midway Rehabilitarion Corporarion Description: Grant Amount: $45,000 The objecfive ofthis program was to provide leveraged grants that would be available on a first come first served basis to make exterior repairs or replacements of identified fiYtures. T'his program has implemented 15 home unprovement projects. These improvements involved the exteriors of these homes and included improvements such as siding, roofing, and garage repair. Two of the structures were owner-occupied multi-family dwellings. The grants were leveraged 2 to 1. Each grant recipient had to attend a workshop to prepare for the improvement process. The workshop covered concems like contract language and what to expect from the program. The addresses of the unproved properties are: 1411 Van Buren 1628 Lafond 1811 Minnehaha 1484 Van Buren 1531 Minnehaha 1361 Van Buren 1388 Thomas 1655 Van Buren 1375 Van Buren 1717 Blair 1527 Minnehaha 678 N. Pascal 1528 Minnehaha 1452 Van Buren 1471 Lafond Ave. The program helped H-MARC build relationships with homeowners with whom they otherwise would have had no contact. It gave H-MARC an opportunity to act on behalf of the residents in the neighborhood and trouble shoot for them. The exterior improvement program did have spin-off effects although Beth Randall could not readily identify them. Ms. Randall said the STAR Program did help to build community. Residents came to the workshop and met their neighbors. Beyond the improvements of property the project opened up contacts that did not exist before. Most of the STAR recipients in this program were families. All but one of the participants was White. The average age of the participant was 40 . Contract Compliance: The area served by the program was coterminous with the area described in the contract. The area is bounded by Fairview and Hamline, Thomas and Minneliaha. 61 The STAR contract was entered into on Febniary 23,1996, and pmgram was projected to be finished by August 1997. All except one of the homes that were approved for impmvements accomplished the charge within 120 days. The one that took longer was given an ea�tension but that was not sufficient. The monies for the returned award went back into the allocation process. The remaining monies eamiazked for H-MARC should be spent and the improvements implemented before the end of the snmmer of 1997. Because of the reimbursement process Ms. Randall thought that the rate of completion was slower. She said that H-MARC reimbursed the homeowners with their own funds and waited for the City to reunburse them. H-MARC could only front a porteon of the money at a time, so this slowed things down fiuther. The funds were used for the intended e�cternai improvement eapenditures. The improvexnents included roofs, siding, windows, fencing, driveways, gazages, and chimneys. The fuuds are not fully disbursed because the STAR awazd missed the fust construction season. Another reason for all the money not being disbursed is because one of the grantees never implemented the project. The monies aze almost entirely disbursed, and Ms. Randall said the pmject will be compieted by the end of the suminer. The STAR grant recipients generally used contractors. However a few of the residents used sweat equity to implement their improvements. Comments: The lowest bids from contractors who met the xiecessary Iabor criteria for getting STAR funds did not always construct improvements competently. This was exacerbated by the fact that some crews had no Engiish-speakiug workers. In one case the crew in good faith started preparing the job. Their method of preparation was unconvenrional. The owner recognized it as such and asked them to stop. The crew and its leader appazently did not understand. As a result of this misstep, $500 of additional repair was necessary. Another concern with the program was that the contract forms for the STAR Program were not thought out completely, wluch generated more work for the community groups. Au exampTe was the late inclusion of the demographic request form as part of the process. H-MARC had much of the necessary informafion but had to go back for more. This only adds to the problems created because of the fact that none of the funds can be used for administrative purposes. Ms. Randall indicated that this exclusion of certain costs such as mazketing and public relations makes STAR funds hard to work with. She also stated that the match presents serious problems when worlang with STAR funds, and she thinks that at least in some cases, other City monies should be usable as match in tlus process. The final comment that was made is that all STAR boazd meetings should be open to the public and that a permanent seat should be assigned to a representative of a community organization. 62 1 � � � � � � � � � � � � � � ��-�a� 95.127 3ewish Community Center Capital Improvement Jewish Community Center of the Greater Saint Paul A rea Descripfion: LoanAmount $408,000 The objective of this pro�am was to renovate the e�sting 7ewish Community Center building and enlarge its pazking facilities. The center has been enlazged and new lighting has been installed. The previous lighting system was mostly incandescent, and now it is halogen and natural lighting. Additionally the entire building has been made handicapped accessible. In this effort a wheel chair lift was added to the pool area to enable movement from the entry level deck to the lower pool level. STAR funds also financed the removal of asbestos from the first level and pemutted rehabilitation of the basement level. Systems were improved at the center including the fire safety and air conditioning. Externally the grounds were modified with STAR fixnds. The changes included e�cpanding the parldng lot, sealing it, and adding more lighting. Uneven walkways were made level and the landscaping was enhanced. STAR funding has reinvigorated the JCC and aliowed it to continue to operate as a resource to the southwestem section of St. Paul. The community which the center services came together and raised $1.9 million for the complefion of necessary improvements. With this project the neighborhood and wider community has a location to hold community meetings, and experience physicai fitness and social programs The JCC services the entire population of southwestern St. Paul. Ali ages aze served. Through day care and the teen drop-in center minors are being served. In fact, 275 children aze regulazly cared for at the day care facility. There are programs geared towazd senior citizens. Also there are a wide variety of options available at 3CC which aze not age specific. This variety includes the fitness center, various community meerings, classes for English as a second language and a host of other alternatives. As a result of the expansion and improvement 7CC has increased its membership by more than 1,000. The majority of those served are White as is reflected in the composition of the overali neighborhood. Contract Compliance: The azea being served by this project is primarily Highland, Macalester/Groveland, and upper W. 7th Street. However the JCC is attended by people from a11 parts of Saint Paul and most parts of the Twin Cities. I The contract was signed 3f26/96 and construction started in June of the same yeaz. By 7une 15, 1997 the majozity of the items described in the contract were completed. All of the intended improvement needs were or will be met through the project but somewhat differently then described in the � contract. First it was not necessary to build the admiiustrative portion of the proj ect on two levels as stated in the contract because there was enough room for e�ansion on the fust leveL The 63 expansion of the administrative offices occurred on the first floor. Second, the teen drop-in center described in the contract was placed in the basement rather than on the second floor. Thus the impmvement needs of the center aze being met as described in tfie conlract but with a different physical design. The last pazt of the project, pazking lot improvements, were completed in November, 1997. All disbursements have been used in the JCC project. All of the improvements were accomplished as indicated in tke contract. Titere was one variation nt method through which the project was implemented. The adminisfrarive area is one floor rather than two. With ample space behind the center one level was sufficient to house the center's administrative needs. A11 of the work on this proj ect was contracted out. Comments: Mr. Garr thought the STAR pmg�am worked well with fhe JCC pmject. He viewed the STAR funding and guidelines to be sufficienUy fle�cible to bring this pmject to fruition The hardest part was locating a competent sub-coniracYor who also met the City's Litt1e Davis-Bacon standards. However only one ofmany jobs had to be redone because of poor quaiity. Mr. Crazr thought meeting the City's Litt1e Davis-Bacon requirements was especially hard in the booming economy wluch was fally utilizing its best construction resources. 0 � � � � � Li � � � � � � r a��a� 95.130 Macalester-Groveland Middle Income FY�-up Macalester-Groveland Commnnity Council Descripfion: Loan Amount: $150,000 The ob}ective of this program was to provide home improvement loans to individuals who might be excluded from traditionai lending opfions. It was set up to cusluon the risk of the lender and spark reinvestment. The program enables residents of ttris neighborhood an opportunity to bonow unsecured loans at a 7.25% interest rate in order to make home improvements and conduct major maintenance. As of 7uly 8,1997, 20 applications for loans have been granted. Over $120,000 has been loaned out. This money which the residents directly borrowed from Firstaz Bank is leveraged by $150,000 of guazantying STAR funds and the associated interest. Improvements executed included but were not limited to new roofs, gutters, floors, sidewalks, retainnig walls, and more. No information has been documented by Macalester-Groveland between February and 3une 1997 as no assistant was assigned to the task. During the interview with Katherine Tarnowski, the program manager, it was also mentioned that the loans aze not secured and that there is no recourse to ensure that the loaned monies are used in the proposed manner. The properties seroed are: 1976 Stanford Avenue 2081 Fairmount Avenue 399 Macalester Street 303 South Brimhall Street 1868 Sargent Avenue 183 Mount Curve Boulevazd 1380 Grand Avenue 1381 Randolph Avenue 2123 Fairmount Avenue 2161 Juliet Avenue 2000 Wellesley Avenue 453 Pascal Street South 2033 Stanford Avenue 1361 Juliet Avenue 412 Macalester Street 1725 Berkeley Avenue 1661 Randolph Avenue 2156 Stanford Avenue 1577 Sazgent Avenue 1730 Lincoln Avenue The program has had mixed success regazding its achievements. Not all of the money which is auailable has been loaned out. This program is a compiement to other grant and loan opfions that the community council assists residents in accessing. The larger impact is negligible. No spin off projects or repairs seem to have been spurted on by tlus loan program. Perhaps this is because the improvements are more geared toward lengthening the life of the home as opposed to enhancing its aesthetic character. 65 Young families are the majority of applicants to the prograazn A significant majority of applicants aze white. This is essentially the character of much of the neighborhood and was expected to be the majority of the loan recipients. Moreover a11 the loan recipients are middte income and are generally individuals with good credit histories and little or no equity in their homes. These participants meet the characteristics identified in the STAR contract for the funds. Contract Compliance: All of the individuals served live in the designated area between I-35 and the Mississippi and Smnmit and Randolph Tlris loan program will run over a 10 year period which started February 1996 and wi11 end January 2006. All the principle and interest on the individual loans will be paid back by that time. Each construction work project appeared to be completed within 3 months. The repayment terms of the loans vary slighdy with the most common length is 3 years. The STAR pmgram had little impact on the speed of actually processing the individual loans because the bank handled that. Completion of the progrun has not occurred because all of Ioans for individual pmjects have not been disbursed. IY is believed that the district conncil's limited staffing and lack of publicity kave prevented the funds being fully utilized to date. STAR funds were fuliy disbursed to tUe bank to be held as a loan guarantee. This disbursement amounted to $150,000. This money is held at the bank in a high yield account in the event of a home loan default. The e�cpenditures aze on items specified in the contract. According to Ms. Tarnowski the leveraged funds are not fu11y used because they do not meet the needs of many of the residents in Highland. In puticular they ate not used because of the residents asset profiles(Iazger amount of equity in home than is allowed under the pmgram) or the loan interest rate is too high when balanced against the home owners desire to impmve the properry. Because of the way this program was configured there are no records in the central or STAR files detailing what eapenditures the STAR money backed. According to Ms. Tarnowski all the money loaned out from the bank was used on exterior improvements. .. � � r �� a� � �ag 95.133 Neighborhood Development Center Special Opportunity Loan Fnnd Neighborhood Development Center Sced Capital: $200,OQ0 Description: The program was to provide graduates of the °RECIPES for Business Success" program or the "Micro-Entrepreneur Training" program with business start up financing. This program has been conducting sessions of the "Micro-Entrepreneur Training" program twice annualiy since the contract was signed. The sessions are held in different parts of Saint Paul with the cooperation of various community development corporarions. They include Dayton's Bluff Center for Civic Life, REDA, Selby Area CDC, Aurora-St. Anthony Neighborhood Development Coip., ESNDC, and NEAR. The classes are offered in fall and late winter. These sessions which are also taught in Spanish and the Hmong language aze mandatory before one can get STAR funds in this program. One business has been able to use this opportunity loan fund. The business is Heaven-Hi Originals at 169 N. Victoria St. The loan enabled the owner to make leasehold improvements. Ms. O'Neill, ttie program manager, had confidence that the STAR program could have a significant unpact, but so far she seems to tluiilc that the program has not exercised much influence. One spin- off effect is the fact that Selby Area CDC is working on a new commercial building on an adjacent comer. The building which Heaven-Hi is located in is for sale. This business presence may make adjacent land more attractive also. This program is serving the fledgling entrepreneurs in the neighborhoods of Saint Paui. The single partacipant in the loan fund is an African American business owner who specializes in the resale of Afi art. Through STAR and NDC, he has made his business location an attractive neighborhood asset and also serves as a neighborhood role model. Contract Compliance: The individual business that is currentiy being served by the loan fund is in the program's service area. The area identified in the contract is the entire City of Saint Paul. � The STAR contract was entered into March of 1996. The leasehold 'unprovements occurred during the spring of 1996. According to Ms. O'Neill the STAR funds did not affect the rate of completion for the program. In the case of Heaven Hi the loan money went toward an awning, electdcal upgrade, plumbing, and other repairs. The reasons that most of the Special Opportunity Loan money is not allocated is because the loan money is eannarked for fixed assets and the start up business people need working capital funds for things like small tools, rent, utiliries, labor, and other such costs. The Neighborhood Development Center lmew about this situation earlier, but thought that the new businesses would get beyond that period of the development process and start needing funds for fixed assets. Another unpediment to the use of STAR funds is that community agency is held 67 responsible for the pay back of the loan and for that reason the CDC tries only to use the loan fund as a final option. The work on the Heaven-Hi project was completed by a contractor. Comments; Mara O'Neill thought the STAR funds were hazd to use because of the fact that they aze limited to physical improvements. Another azea of contention is the recourse aspect of the loans. Ms. 0'Neill does noY believe that the CDC should ultimately be held liable for the loan. She also disiiked the way in wluch Norwest Bank was servicing the loan. She wants better and more immediate information regazding the state of the loan payment schedule. She also thivks that the anangement with Nonvest increases the costs of STAR funds to borrowers and loan fnnd operators. Neighborhood Development Center Project at Heaven-Hi Originals .: � � � � � � � � a�-�ag 95.141 Dale Crossroads Development Strategy North End Area Revitalization Inc. Description: GrantA,mount: $30,000 Loan Amount: $50,000 The objective of this program was to revitalize the Dale Street commerciai district by offering low interest loans and grants for exterior improvements. Two eaterior improvement have been implemented. The first is an awning that was added to Easy Street West at the comer of Como and Dale. The awning was financed through a]oan, and it runs above all the exterior wiudows. The second project was the extension of water service to a commercial car repair garage and the repaving of the parking lot and driveway leading to the shop. This improvement is located at 594 W. Maryland One more project has been approved, a pazldng lot and deck. No new businesses have been attracted to the service area as a result of the STAR funds. Only three of the ten projected 'unprovement sites have been developed or at least identified. The 5TAR funds haue helped direct the interest of North End Area Revitalization (NEAR) to the commercial redevelopment zone. NEAR spent substantial titne mazketing the program in the area throughout the spring and snnmier of 1997. Dave Black, progtam director, lrnew of no spin-off effects of this program. � NEAR's STAR Loan Prograni directly serves local businesses. The types of businesses being served are an automobile repair shop and a neighborhood bar. The clients of those two businesses aze generally from the neighborhood. Contract Compliance: � � � � � � Two of the businesses which are being or haue been assisted with STAR funds are geographically within the azea proposed beriveen Maryland/ Topping and Dale/Western. One was west ofthe target area by four blocks, and was approved as a waiver of the guidelines by staf'f. The contract for the entire STAR awazd with NEAR was negotiated March 1, 1996. It was indicated that the whole program would be finished by February 1998. Currently this program has more to do. The improvements on both loans aze completed and took less than 3 months. Steve Haney's project at 594 W. Maryland has not been reimbursed because of paperwork problems. The STAR Program is not affecting the rate of completion. The STAR budget has been utilized for an awning, water connection, and paving. The primuy reason that the money has not been fully awarded and/or reimbursed, according to Mr. Black, is that businesses in that area do not see the benefit of maldng ixnprovements. They do not see that the rate of return due to the improvement will outweigh the risks and obligarions associated with the loan that they would have to take out. The businesses want to see improvement to the entire streetscape of Dale, but this would involve the participation of players like Northem States Power (NSP). .• Mr. Black indicated that he thougtit this type of improvement was not likely in the neaz future. 'The other reason that businesses have been reluctant to participate is that the costs of the financing are too high. Matching funds are often unavailable or would severely deplete operating capital. The 5% rate of interest is not sufficientty attractive to offset the additional costs for labor standards compliance and loan servicing. Comments: Mr. Black indicated that the STAR cycles are unrealisric for small business activity, suggesfing that business monies be open for individual proposals. He felt that the matching feature was severely limiting. Many of the parties that need these monies cannot get a match because they are over extended or at risk for some other reason. Mr. Black believes that despite the sfightly tower interest rate offered by the STAR Program, the process and requirements offset any expected advantages. NEAR plans to retum all remaining STAR loan funds because of the liability it would incur in making additional loans. Grant funds, now available for use without a corresponding toan, wilt be attractive and are eapected to be depleted by mid-1998. 70 � � � � � � � � � � � � ' q�- ta� 95.148 S� Alban's Terrace Project for Pride in Living, Inc. Descripfion: Loan Amount: $225,500 The objective of this project was to develop the vacant building at 683 Hague into 12 apariment units and provide 1 S pazking spaces at 672 Selby. The units were to be designated for rental. This project restored the multi-unit building at 683 Hague which had been vacant for approximately 10 yeazs. It also provided 15 pazking spaces at 672 Selby. The improvements to the building included the replacement of the roof, hard wood floors, bathroom and ldtchen fixtures, windows, interior walls, electricai box, and the heating system. There aze 12 rental units in the building, a laundry room, a community meeting space, and Project for Pride in Living (PPL} office space. St. Alban's Terrace complements PPUs mission. This property is in close proximity to other rental complexes that they also own and manage. As a result they can locate their admiiustrarive functions for the area at St. Alban's Tenace in order to serve all their buildings in the neighborhood. This project heiped contribute to the revitalization of the Selby-Dale neighborhood. Twelve families were given an opporhuiity to live in a safe and affordable dwelling that met standazds for habitation. This property which has finally been made habitable is no longer the location of transient and drug dealing activity. The renovation has positively affected the neighborhood according to the apartment manager, Viclde Petroso. She indicated that there aze new revitalizarion efforts along St. Alban, and they aze taking place at other multi-unit rental complexes. Other indicators of the positive influence of this STAR funded revitalization are seen in accolades from the Grand Gazette and the fact that there is a waiting list for tenants at St. Albans. The building has 12 rental units and all are leased out. Ten of the units aze occupied by married couples with children, and two are occupied by single pazent families with children. African-Americans comprise half of the heads of household, hvo aze White, one is Hispanic, and three are Africans. The occupants have low to moderate incomes. Eight of the tcvelve units' occupants are below 80% of the mean income. Contract Compliance: � The building that was renovated is the same as the property identified in the contract. The occupants moved from various locations, many of which aze outside of St. Paul. Many of the occupants like the location because it is convenient to work. ` The STAR contract was signed on Mazch 21, 1996. Renovation of the building began that same month and was completed December 1996. Toward the end of the process there was a delay in � completing the rehabilitation of three to four weeks because the contractors on the job did not seem to fully understand the fire codes. The STAR funds did not directly affect the speed of time that it took tbe pmject to be completed. Mr. Helmeke, the pmject manager, indicated that the STAR funds � were easy to work with especially compazed to the funds auailable through the rental rehabilitation process. 71 � The funds were compleYely used for the rehabilitation of the buildutg and developmenY of the parking 1ot. As indicated in the central file the list of expenses associated with this renovation are e�austive. In particular the costs which ran in excess of $10,000 aze: demolition cabinets tile electric as halt roofin wood floor refinishin fire alazm maso windows c etin lumber all aintin Comments: PPL applied in Cycle 2 but was not funded. PPL did not apply in Cyc1e 3 because they felt that housing was not a priority of the Neighborhood STAR Board. Rosemary Ctazk, a resident of Saint Alban's Terrace, allowed tke research assistant to tour her unit. She indicated thaf she liked the look and feel ofher apartment. She did not seem to laiow that city sales tas money had been involved in financing the project. Apartments at St. Alban's Terrace � � � � � 72 �� q�-�ag 95.151 Railroad Tsland Moving on the Right Track Department of Planning and Economic Development Description: Grant Amount: $100,000 The objective of this program was to provide visibility and opportunities for neighborhood housing improvements. Over 40 residential properties were planned to be renovated. This project was intended to stabilize and atlsact residents. This program has directly enabled 17 home improvements in the Raikoad Island neighborhood. However because this is considered part of a broader inifiafive that involves other funding sources, the overall impact of the Railroad Implementation Group was over 40 home unprovements. The unprovements were tazgeted primarily at health and safety featutes of the residences and secondarily towazd facade improvements. As a resuit of this program recipients are safer to enter and e�t and less likely to be subject to hazards. The addresses served are: 661 Bedford 657 Desoto 453 E. Minnehaha 706 Bedford 474 Hopkins 585 Payne 588 Brunson 497 Hopkins 678 Preble 694 Burr 501 Hopkins 670 Rivoli 747 Burr 509 Hopkins 527 Tedesco 641 Desoto 444 E. Minnehaha Because of this program and others there is renewed confidence about economic and residential opportunities in the neighborhood. People who had moved out of the neighborhood are coming back. Three new homes have been built in the neighborhood. Moreover two business have recently established themselves on Payne Ave. They aze an antique store and a science lab. There is a renewed effort in the community which is being felt throughout the east side. � Railroad Island Moving on the Right Track has served residents in 17 homes. Of the recipients one was African-American, two were Hispanic, one did not report, and the remainder were White. The mean age of the recipients was 48.8 years, and the average household income was $28,500. 47% � of the homes were headed by males, 41 % by females, and the remaining percentage did not report. � 73 Contract Compliance: All of the impmved properties fell within the designated contract azea bounded by Bush on the north, �Iliatns Hill and the raikoad tracks on the west, Swede Hollow Pazk on the east, and East Seventh on the south. This pmgram began at the end of September 1995. Most of the consttuction occurred during the building season of the 1996. The entire program should be completed by December 1, 1997. The funds were used on safety and facade improvements. This includes safe passageways in and out of the house and refurbished exteriors. Tn particutar this program improved: porches, steps, and decorative details exterior painting, siding, and stucco repairs of deteriorated retaining walls replace(repair windows replacemenUrepair of roofs, soffits, facia, and gazage repair. The reasons for the delay of this program aze the match and difficulty getting bids from the contractors. The majority of work was done by contractors. The small amount of volunteer Iabor was not documented. Comments: Because of the amount of difficnliy getting bids and general commitments from contracYors, Ms. Pemberton thought that one appruach that may ameliorate this difficulty would be the use of more construction apprentices on STAR projects and pmgrams. 74 ! C� � � �..', � � � � � � � !; , ; 95.152 Riverview Area Streetscape Riverview Economic Development Association Description: Grant Amount: $74,000 The objecrive of this project was to revitalize the West Side's major commercial distdct with designs honoring the multi-ethni city of the neighborhood while using the river as a focus point. This project has been partially implemented. At this point 12 benches have been acquired and installed and eight small murals have been created on the George Street viaduct. The concrete benches which have been acquired use inlaid tiles as decorafion. The tiles were made by school children in the neighborhood. The murals on George Street depict characters from different cultures throughout the world. It represents the diversity of humankind. Another mural was created on the viaduct over Robert Street. The design for that work was contributed to by the Girl Scouts. However, the majority of this streetscape project has not been implemented. The idea of creating metal sculptures has been revisited and as a result of dQnated materials made availabie from the old Wabasha Bridge the project will involve a stone sculpture rather than three metal artworks. The planned stone sculphue, which will be located near the intersection of Wabasha and Concord, will denote the role of water in the arrival of many of the community's residents. The design will incorporate a semi-circulaz walk and a fossil mosaic. Other intended elements of the project are the addition of 10 planters and 12 trash receptacles throughout the neighborhood. This project has renewed community pride. Ms. Briseno said owner occupation has increased and rental tenants want to purchase the property that they are occupying. Visibility for REDA has increased with this project. The Arts are becotning more accessible. Philanthropic organizations are begimiing to recognize REDA and its commitment to the overall well-being of the community. The impact of this project is felt throughout the community. No actual numbers are available about how many aze served, but the improvements aze easily accessible to all residents. � The service azea is defined as: Concord Street between Ada on the east and Wabasha on the west; Robert Street between the Burlington Northern line on the north and Concord on the south; and Wabasha Street from Plato on the north to George on the south. � � Contract Compliance: STAR funds haue been used for the benches, tiles, artist fees, and supplies. This is verifiable through the receipts in the central file. � The contract was entered into on Mazch 1, 1996. The itnplementation began in Aprii 1996 and is expected to be finished at the end of 1997. The matching process has slowed the rate of completion, however, the project is still in compliance with the timeline as specified in the contract. Another � factor slowing the completion is REDA's difficulty getting commitments from azea businesses to help maintain the unprovements. Currently they aze looking for sponsors for the planters and trash � 75 r � receptacles. The process of getting sponsors for the benches took some time because the businesses � were not certain how much work was involved. The benches cost $8,OOR The murals on George � Street were $6,000. The Girl Scout mural was $18,000. Each aspect of this project required group involvement. Volunteer labor was a major component. � Not only was physicallabar a part but so was reseazch. The Girl Scouts reseazched different features of Latin American cultures in order to decorate the foot bridge. 76 Street side bench on Concord Street �� [J � �_J ��-ia� 95.153 West Side Business Development Loan N�nd Riverview Economic Development Association Description: Grant Amount: $50,000 Loan Amonnt: $60,900 The objecrive ofthis loan and gant program was to stimulate neighborhood inveshnent. The monies were designated to leverage the inveshnent on a one-to-one basis. This program has been partially implemented. Anne Briseno, the prograzn manager, stated that the remainnig grant portion ofthe program is in the process ofbeing implemented, but the loan portion is uncertain. Under the grant, 12 store fronts have been unproved. Some of them are: 11 Concord St. 420 S. Robert St. 455 S. Robert St. 175 Concord St. 429 S. Robert St. 458 S. Robert St. 183 Concord St. 441 S. Robert St. 464 S. Robert St. 168 George St. 448 S. Robert St. 537 State St. The improvements include awnings, windows, doors, stucco, signage, paint, pazking lots, and lighting. The loan funds helped with the acquisition of the property at 200 Concord Sireet. REDA has identified four more businesses to use the remainder of the grant funds. The use of the loan funds has not been completely identified, but another acquisition transaction would be a possible use of some of the loan funds. This program has renewed business confidence in the commercial viability of the Riverview area. Membership in the neighborhood business associarion has increased. The relationships within the REDA and with the arganization itself have improved. Examples of the improvement in the business climate of the Riverview azea aze witnessed in the fact that Mi Tiena Restaurant, Megusta Mexican Cuisine, Las Americas grocery store, and others moved into the area. This prograzn is directly serving the business retail segment of the population. This in turn is helping to supply the neighborhood with a comprehensive array of goods and services. In fact some of the stores are highly specialized and their service and/or product are not readily found throughout the metropolitan area which gives them a larger service azea than the Riverview area. There have been three business eapansions and five business that went from tenant status to owner occupied status. Another indicator that business activity is increasing for the neighborhood can be seen through the steadily elevated attendance at the Cinco de Mayo festival. 77 ' Contract Compliance: All of the businesses that were unproved by this program are located in the area that was designated in the contract. The area is one block on either side of Concord Street between Ada on the west and Wabasha on the east; one block on either side of Robert Street between the BurIington Northern Raikoad on the north and Annapolis on the south; and one block on either side of Wabasha and Wuufred from Plato on the north to Shyker on the south/west. All of this azea is in Saint Paul. The STAR contract for this program was entered into on March l, 1996. Each of the improvements had to be completed within 90 days per REDA guidelines. All of the facades have been completed within this time frame. Ms, Briseao made no indication as to when the loan portion of the program would be completed, but she believed that the grant aspect would be completed by the end of September 1997. The final completion period in the contract is Februazy 1998. Ms. Briseno stated that there were no elements of the STAR which accelerated or retard the speed of the prograzn's completion. Aowever the REDA requirement for more than one coniractor bid has extended the amount of time prior to the implementation of the improvements. All of the gtant funds have been used as specified in the contract. The monies went to facade improvements. However the loan funds did not go towazd commercial rehabilitation but rather towazd the acquisition of a space for business. Ms. Briseno was certain that her accounY officer, Marshall Tuxner, was aware of this, and that this use although extraordinary was acceptable. Comments: Ms. Briseno expressed concerns about the usefulness of the STAR loan program. She thinks that the underwriting standards aze excessive and that the community organizations can not compete against the private sector. She thinks that in tight of the efforts tfiat communiry organizations make to mazket the loans that they should also get to service them. Because neighborhood organizations have few assets she thinks that it is futile to hold them liable for loan defaults. Another problem she had wifli the program is that a recipient must use the funds for bricks and mortaz. She indicated that these requirements for sales tax use of funds limit the possibilities of the program and aze generally unrealistic. Ms. Briseno also did not caze for the use of reimbursexnents as a method of disbursement. Because of this feature it put a heavy burden on the community organization which is already strapped for cash. When Ms. Briseno applied and accepted the Ioan feature ofthis pmgram she was thinlang that should could use the loans as interim financing while waiting for the grant reimbursement. The funds in the loan portion have not been used in such a way but that was her initial thought. Editor's Note: The City agreed with Ms. Briseno's concem about loan servicing of the business loans and REDA now has their own servicing agency handling the individual loans. FF3 [�� 95.155 Indnstrial Expansion and Renovation Loan Program Port Authority of the City of Saint Paul Description: �� i a� LoanAmonn�$150,000 The objecrive of this loan program was to provide up to 3 loans that would be originated with manufacUUing or industrial companies for facilities unprovements, designed to increase the City's tax base and createlretain living wage jobs. Loan terms with the Port Authority were to be set at 4% interest with a term of 15 years. This loan program has been implemented. One loan amounting to $150,000 was awarded to Northwest Sheet Metal. With the help of this loan they were able to acquire a site and build a new manufacturing facility. The facility is located at 110 W. Sycamore. The building which is 15,300 square feet houses admiiustrative and manufactiuing funcrions. The possibility that three loans would be awarded was discussed in the contract. Steve King, the program manager, said that was not possible because the STAR award granted the Port Authority was less than what was requested. The plan as implemented allowed the Sheet Metal works to double in size. More importantly it allowed them to remain in Saint Paul. This was one af the primary objectives in this loan program- job retention and creation. This loan accomplished just that. The program allowed Northwest Sheet Metal to use the final pazcel in the North Rice Street Industrial Park which had developed slowly and somewhat uncertainly. It attracted companies with similar interests about eacpansion to approach the Port Authority. This project increased the ta�c base ofthe city by an assessment value of approximately $640,000. Eight additionai jobs were created which pay an average hourly wage of $24. This program directly served one manufacturing business. However it provided a safer and more efficient work space for the existing employees and addirional space for 8 new employees. Contract Compliance: The facility that was created as a result of the loan program is in the City of Saint Paul. The service azea that the Port Authority described was citywide. The conh�act for the loan program was entered into March 1, 1996. Construcfion on the sheet metal facility began in October 1996 and was completed in January 1997. STAR loan funds were used for the purchase of the land on Sycamore it appears. The money that paid for the reimbursement went to Commonwealth Land Title. 79 � 95.158 Phalen Corridor Redevelopment Project Port Authority of the City of Saint Paui Description: Grant Amount: $150,000 The objective of this project was to redevelop vacant and underutilized industrial land for reuse as industrial projects which generate living wage jobs. The corridor extends from I-35E in the west to the Phalen Shopping Center in the east. The project includes the acquisition and redevelopment of approximately 30 acres of blighted, abandoned, and underutilized raikoad property. The new azea is desi,giated to hold light industry. This project, which wilt redevelop the Wiltiams Hili secUon of Saint Paut, has not been implemented. This is a business park development. It will encompass five pazcels on a total site area of 25 acres. The park is zoned I-1 usage, so it will be tazgeted toward light manufacturing and industry. Currently the land is going through soil remediation. After that the ]and will be reshaped to accommodate the planned acrivity. Later the utilities and roads will be added. "The STAR funding is critical," according to project manager, 7ohn Young. There is a narrow mazgin for errar in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awarding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are charged with spurring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that will occupy the park, there will be a recognizable positive effect. For instance, the Port Authority requires 60% of the project tenanYs employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the park to employ one worker per 1,400 square feet of enclosed sgace_ This acYs in combination with the fact that the port atso mandates that business develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees wiIl work in the business pazk when it is fuIly developed. This is stren�thened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. The project will directly serve approximately 5 light manufacturers and their employees. Beyond that it will depend on the nature of the businesses. Factors such as IocalIy made content of tlie inputs and the mazkets of the fmal products will determine who is being served also. Contract Compliance: The project is stili set to fa11 within the boundaries established in the contract. The service azea is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northem rail line tracks on the north and east. :1 � [� � �� - i a� The contract for this project was entered into Mazch 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The roads and urility serves aze expected to be finished by September 1998. � No STAR funds have been used on this project because no capital improvements have been made. First remediation must be completed. After a month (9/97) that process should be complete. This necessary step has slowed the completion process. Also matching funds that are pending for this � proj ect from the Federal Economic Development Administration must be received before the STAR funds can be used. If they aze not, then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors aze addressed Mr. Young believes the total project should be I finished and ready for business development by September 1998. � � �� .� ' 95.165 Cambodian Community Center United Cambodian Association of Minnesota Description: GrantAmount: $150,000 Loau Amount: $150,000 Seed Capital: $ 50,000 The objective of this project was to enable The United Cambodian Association of Minnesota (LJCAM) to purchase the bank building at 523 Jackson St.. This structare was designated to be used as a Cambodian Community Center, UCAM offices, and a Cambodian restaurant. This project is partially completed. The building at 529 Jackson St. has been acquired. The resYaurant facility described in the coniract has not been started. Tke buildittg that the United Cambodian Association of Minnesota (UCAl� purchased houses numerous functions. They are: UCAM offices, the Cambodian Legal Project, recreational and social faciliries for Cambodians, an art studio, and 16 residential rental units. The building's purchase price was $700,000. The financing of the purchase included $40Q000 in mortgages on the building. With STAR funds the UCAM has been able to serve a segment of the Saint Paul citizenry which was not previousIy being served. Cunently the organization is serving as a social organization. This mle is slowly changing to one more aimed at cultural preservation. During this period of evolution the UCAM is sti11 serving the urgent needs of its clients, 80% ofwhom are considered in poverty. The needs involve issues associated with social disarray experienced when their clients aze assimilating Yo American culhu The UCAM impacts the wider community by offering educational and social opporiuniries to the bmader Asian community. It indirectly benefits the wider community by stabilizing and directing the Cambodian community toward self-sufficiency. The center primarily serves the Cambodian population of Saint Paul. There are 4,500 Cambodians in Saint Paul and a total of 9,000 in of Minnesota. The project management thinks that about 3,000 people aze served directly. However the served population is not lunited to Cambodians. Through the center's legal services immigrants from other countries aze aiso served. People from Africa and southeast Asia look to UCAM for assistance. Contract Compliance: The purchased building is located at the address indicated in the conlract (comer of Tenth and Jackson). The conlract was entered into January 2, 1996. The purchase of the center occurred that same month. UCAM requested and was ganted an extension on the seed capital loan unfil7anuary 2, 1999. Additional tenants are being sought for the project and these funds will be used to make leasehold impmvements for new tenants that aze new businesses or are earpanding. The STAR funds that have been expended for flvs project were for the acquisition of the building at 529 7ackson. The remaining funds which have not been spent aze seed capital funds to start a new E:3�► � 1 ' � a� - i a� restaurant or improvement of their other commercial space. Two primary factors are holding up the complete implementation of the plan. The first is locating matching funds. UCAM management thinkc this will be resolved with iY s latest efforts to apply for grants. Another stumbling block for the project is the inflated prices associated with the design and the difficulty of getting bids which work within their budget. UCAM has teiminated its relationship with the former architect and is looking into other designs and uses for tlus space. � Comments: Mr. Popken raised some concem that the process was all on paper. He thought that there was going to be a site visit during the approval process, yet he never heazd that such a thiug had happened. � Editor's Note: A video that was viewed by the STAR Boazd was taken of each of the application sites. The City Council agreed with Mr. Popkens's concerns and staz�ting with Cycle 3 all applicants � who aze invited to submit a final application aze interviewed by the STAR Board. � � � � � � � � � �J � Ei�3 � � 95.166 University Marketplace Facade Improvement University United Description: The objective of this program has been to provide funds that will be used to physically improve businesses in the University/Midway azea. The required match is 1.2 to 1. As of July 22, 1997 no part of this progrun has been implemented. However nine facade improvement grants have been awarded within the past two weeks and per University United guidelines once a project has been awarded the unprovements must be completed within 45 days. Ms. Rodriguez, the program manager, said that there may be extensions on trris deadline, but all the approved grants should be completed by the end of the bnilding season. When the improvements aze unplemented they will include siding, doors, windows, roofs, paint, and signage. University United has placed a deadline of July 30, 1997 on all grants for facade improvements. Without eacpanding the service area Ms. Rodriguez is uncertain as to whether the funds can be fully awarded. Addresses for Approved Facade Improvements: 1183 University 1569 University 453 N. Snelling 1669 University 1266 Donohue 1505 University 1639 University 1553 University 1459 University This program has helped University United make a connection with the business community. Businesses aze beginning to realize that there is an association which represents the commercial interests of the Midway, and they are seeldng it out for assistance. Ms. Rodriguez could identify no spin off effects from the facade improvement program, but she was convinced the program serves as a complement to the Midway Mazketplace shopping center. She indicated that many of the small businesses which received the awazds for the grants do not replicate the consumer offerings of the shopping center. This specialization accentuates the commercial potency of the azea. This program directly serves the businesses of the Midway area. The first approved allocation of $39,315 will serve nine businesses. Each awazd averages $4,348. If the remaiiung funds are allocated in the same average amounts about aight more improvement awards will result. The applicants have been racially diverse. Seven are WYute, three are Afi and six are Asian. Because of the magnitude of this commercial hub, the area serves residents from outside of the neighborhood and the city. GrantAmounh.$7s,000 � , E:� � �� Contract Compliance: � Each of the businesses that have been awarded grants are located within the region which was � identified as the tazget azea in the contract. The borders are Fry Street on the west, L,e�ngton on the east, Shields Avenue on the south, and Charles Avenue on the north. � The contract for this program was entered into Mazch l, 1996. Because of a change in University United's administration staff, limited administrative resottrces, time demands on small business � ' � � � owners, difficulty of getting two construction bids, and business owners' inabilities to meet required standazds, the implementation process is only now getting under way. As stated earlier each award recipient has 45 days to complete the project, but because of a high demand for contractors in mid construction season it may take longer. Additionally the University Marketplace Faqade Improvement Program applicants have until July 30, 1997 to apply but this may not ensure enough quality applicarions to awazd all the grant money. 5611 Ms. Rodriguez believes that the program can be completed before the end of the yeaz, but it might involve expanding the service area farther in each direction on University Avenue. Despite diligent efforts to contact the public about the University Marketplace Business Facade Improvement Program for the Midway area, there has not been an overwhelming response. University United has released flyers promoting the pmgram three times. The first of which was in April 1996. Two of the flyers were mailed whereas one was delivered door to door. Most of the projects involve the wark of professionals in the construction industry. University � United advised each business to do it that way to make certain that the improvements met regulatory requirements. A couple of the projects involved some sweat equity, which was limited to minor portions af the unprovements. Update as of January 21, 1998: As of today, IJNITED has closed on 13 of the 20 projects. Three projects will be completed next month. Total physical improvements for the 16 projects is $203,155. If the remaining projects follow through to completion the total improvements will be $317,155. A total grant of $75,000 was allocated to this program. The project far exceeded the required matching amount specified in the contract. m � � 1 � , r / r �) 1996 Neighborhood STAR Small Grant Program 96.001 962 University Avenne Facade Improvement for the Upper Midwest Acupnncture Clinic and Healing Center Grant Amount: $15,000 Asian Business & Community Foundation Description: � The objective of this project was to renovate this building's facade, create signs and rehabilitate its front access. In addirion the project was intended to make the buiiding more visible, handicapped accessible, and more attractive to the clients. � lJ � � � This project has been partialiy implemented. The fi access has been completed. It has concrete stairs which lead onto a wooden deck. The deck azea is surrounded by four-foot wooden walls. The walls were varnished ixnmediately after completion, but the deck portion was not. It appeazs to haue deteriorated to some extent, and it may not last the designated seven-yeaz period. In order to make the building handicapped accessible the pazlang lot was resurfaced and a gap between the building and lot was filled. According to Nghi Huynh, the project manager, the door to the parking is wide enough for a wheel chair. It did not seem to be as wide as standazd handicapped doars. However there is a garage door adjacent to the entrance and Mr. Huynh indicated that it is used as an access also. Despite this improvement there are significant deterrents to handicapped use of the building. First it would be neazly impossible to ascend the incline from the sidewalk to the pazking lot entrance without help or at least a motor. Secondly, the bathroom facilities aze not handicapped accessible. � Because the building is made of corrugated steel and the parking lot is adjacent to it, it is sub}ect to denting. A protective wooden guardrail was installed around the building. In the rear and front ofthe parldng lot gates and fences have been erected. The gates can mll open and shut. The last part � of this project is a decorative cylindrical wooden structure on the northeast comer of the building. As of August 1997 it had been completed and was waiting for a sign to be placed on it. A lit sign will be placed at the top. The top is defined by an angulaz cross-sectional cut. ' l, I � IJ � Because of this pro}ect the center at 962 University is more visible. It benefits the clinic by making it easier to recognize on the a�enue. The lazger community is benefited also because this is the only health center in the eastem metropolitan azea which synthesizes eastern and westem approaches to medicine and healing. This clinic mostly serves people from the eastem portion of the metropolitan area. Mr. Huynh described many of the patients as having low incomes. 70% of the pa�ons are of East Asian origins, and 30% aze White. �'�37 ' Contract Compliance: The services of the clinic are strongly focused on the immediate area surrounding the clinia This includes the Midway and Frogtown areas. Because of limited services throughout the metropolitan azea most of the clients come from the east side of the Mississippi. The STAR contract was entered into 7uly 22, 1996. According to Huynh, improvements began in June of 1996 and are e�cpected to be completed by September 1997. This does not fall within the one year expiration period wlrich ended on 7uly 22, 1997. STAR funds have been disbursed on this project. There have been two requests. They are recorded in the STAR file. The central file shows no disbursements or receipts. The majority of the project was accomplished through contracted labor. Volunteer labor was used to prepare the area for the improvements and varnish the eaposed wood. Midwest Acupuncture Cenfer E�3 , 0 ' , � � 1_ J L a�-1a� 96.002 Maintenance, Training, & Distribution Center Aurora/Saint Anthony Development Corporation Descripfion: G�ntamo��:$io,000 The objective of this project was to create a facility serving as a maintenance, tool storage, and distriburion center for products donated by various businesses which will be used to aid residents gain lmowledge of tools used to make maintenance repairs. A garage has been modified and improved to setve as a learning and resource center foz basic sldlls. In order to adapt this building to a different use changes were made. The improvements include a new roof, electrical wiring, a gas line, and sheetrock. Siding will be added to the exterior of the building. Because this project has not begun to use this space, it can not be determined what the project will achieve. However it is eapected that this project will aid residents in learning rudimentary skills about plumbing, sewing, carpentry, and electrical wiring. � The project has been taking applications from potential participants. The applicants must be over eight years of age. Most of the participants aze expected to be children or young adults. However senior citizens will serve as mentors and the beneficiaries will include middle age residents who L � , tJ lJ � � � � want to enhance their laiowledge of home improvements. Contract Compliance: This project serves the neighborhood residents, but the adyacent azeas of Frogtown and University/Smmnit are also served. This STAR contract was entered into on August 30, 1996. The project began in October 1996. It will be completed by August 1997. The manner in which the STAR funds are disbursed did not impede the progress of the project. The STAR funds were utilized for capital improvements to the new gazage behind the house at 770 University. The improvements anclude a roof, electrical and gas service, and siding. This project was completed with a significant contribu6on of volunteer labor from the neighborhood and others. The implementation of this project was made possibie through the volunteerism of the residents of the neighborhood, and volunteers &om the carpenters and masons unions, Central High School students, and Knutson Construcrion. � � � 96.003 �rniture Warehouse Catholic Charities GrantAmoun�$12,454 � Description: The objective ofttus project was to rehabilitate the building at 436 N. Smith by relocating the garage door, upgrading the interior space, and maldng some public improvements Yo the front of the property to be used as a fiuniture wazehouse. This pmject has been implemented. The leased building at 436 N. Smith has been rehabilitated. In doing so the e;derior has been painted, the roof has been fixed, and the buildiug has been insutated. Intemally the building has undergone some changes also. 'I'he impmvements and additions include an office space, a kitchen, and handicapped accessible bathrooms. Frank Forsberg, the project manager, said this location is superior to the previous site in Frogtown because it is lazger, less expensive, and closer to a number of bus tines. Part of the plan that was indicated in tiie contract was not possible because of cost restrictions. It was proposed that a garage entrance be placed in the front of the building. It was too costly, and so it was not done. Forsberg also explored the possibility that a newly enlazged garage door be placed along the south side of the building. This was not possible either because the heating pipes in the building aze elevated along the south side at a relarively low height. Placement of a door on that side would have meant re-routing the pipes. A choice like ttus would have been cost prohibitive. Catholic Charities and other non-pmfit social service agencies have benefited from the creation of this furniture store. This improved site acts as a conduit between donors and recipients. It is a cleariughouse for fiuniture which is donated from the eastern metropolitan azea. The customers aze homeless and are trying to get back into housing. With severely limited resources the clients of the Fumiture Wazehouse have no way of obtaining fiuniture. None of the clients walk into the center direcfly but are referred fi other agencies. The referring agency writes out a description of what the person needs. The Furniture Wazehouse tdes to met that need. Thus the warehouse project is having an impact on the community. Most of the people served by this project aze from Saint Paul. Forsbetg estimated that 10% of the clients aze from outside of Saint Paul. Few of the furniture store clients come from Minneapolis because they have their own service. On a�etage, 40 families use the fiuniture store per week. Contract Compliance: The site thaY was renovaYed at 436 N. Smith concvrs with the site indicated in the contract. According to Forsberg the Furniture Store mostly serves people dwelling in downtown Saint Paul. A lazge percentage of homelessness in the eastem half of the metropolitan area is in downtown Saint Paul, and this is the region to which the furniture store caters. � .� ' � , C 1 � � ' � � � �J [J , ' � � ' � q� - �a� The date that the contract was entered into was August 9, 1996. Construction started in July 1996, and it was completed in October 1996. The STAR funds were fully used for this project. Receipts aze present in the central file. The expenses included partitions, insulation, a garage door, and assorted materials. This project involved volunteer labor. Volunteers helped with the interior and exterior painting. They also helped with the demolifion of interior walls and shelves. Comments: Forsberg chazacterizes the STAR program as a good investment in the inner city. However he fliinks the paperwork for the STAR, especially the small STAR, may be too intensive. He stated that some of the regulations should not be applicable to small grants. He thought that if some of the regulations were ]ifted it would be better for the community. 91 ' � 96.004 Children's Center Playground The Children's Center GrantAmount:$12,500 � Description: The objective of this project was to construct a playground for children ages 3-12. This project has been implemented. The playground is Iocated on the west side of the prope�y at 1065 Summit Avenue. Prior to the execurion of this pmject there was a playground on this site. As a result of ttus project the playground was doubled in size. In prepazation for the additional playground equipment the new secfion was excavated and a foot of pea gravel was filled in. Atop the fill a new piece of play equipment was installed. The equipment is primarily composed of fieavy duty plastic. It includes four slides and a slide track. According to the project manager, Colette Ryan, there was not enough play area and equipment for ttte children from the Childten's Center. Prior to the installation of the new equipment it was necessary to stagger the times in wluch the Children's Cente�s students used the play azea Because of the eapanded capacity this is no longer necessary. This not only benefits the Children's Center, the Crocus Hill Nursery, and Saint Luke's Elementary School but also the larger community. Although the back portion is fenced off, there is one gate in the back, an opening in the back, and one gate and an opening in the front of the grounds. Because of this access, ctrildren from the entire neighborhood can use the playground. This is the only playground within five blocks. The location and equipment at the grounds make this a safe and amactive play azea for small children. This project direcUy serves the children, pazents, and faculty at the Children's Center. Additionally it serves the children who attend Saint Luke's. Only the school children in grades K- 5 can use the playground. Minunally there are about 200 children who use the grounds on a daily basis during the weekdays. On the weekends and week nigkts tke grounds are more intensively used by the neighborhood. Ms Colette had no idea how many people used it during those periods. Contract Compliance: The area served is bounded by I-94 to the north, Summit Avenue on the south, Lexington on the west, and Victoria to the east. The nearest playground is located at the J.J. Hill Elementary School. This play area has been identified as being unsafe because it has a history of some criminal activity. Thus the newly expanded playground at the Children's Center is critical. The STAR contract was signed on August 30, 1996. The implementarion of the project began in July of 1996 and ended in September of 1996. The STAR funds went towazd the play equipment. Ms. Colette indicated that they chose equipment that the city regularly uses because it has a proven safety record. They did this despite the additional cost of the recommended equipment being higher than some altemarives. i 92 ' � ' qg ��a� Sweat equity was present in the implementation of this proj ect. Volunteers excavated the site, laid the gravel, and assembled the play equipment. The assembly was conducted under the supervision of a certified representative from the play equipment company. Comments: Ms. Colette indicated that some of the applicarion questions did not apply to the � situation of the Children's Center. This made the process mare confusing. Overall though she thought the Small STAR progatn was a good fit to their needs. The coordinators were helpful. Ms. � Colette said with the right project that she would apply again. Playground 93 Children's Center � 96.005 Dayton's Bluff Youth Project Dayton's Bluff Center for Civic Life GrantAmonnt: $10,000 � Description: The objective of this pmject was to install a gas boiler, insulate, sheehrock and build an egress exit in the basement of 281 Maria, so the azea could be used to house a bicycle repair club and a ceramics pro�am for at risk youth. This project has been unplemented. It involved the prepazation of the basement space of the Dayton's Bluff Community Center at 281 Maria Street for a bike repair shop and ceramics program. The space has been designed to benefiT at-risk yonth. In order Yo accomp&sh this project an egress access was added to the rear of the building. The access is enclosed in protective fencing. To increase the energy efficiency of the center insulation and a gas boiler were nvstalled. The proj ect was not completed in absolute compliance with the contract because sheetrock was not used in the creation of the bike repair shop. Donovan C»mmings, the project manager, said that the actuevements of the project aze limited because an attendant has not been hired for the bike repair shop. However there has been some program success with the creation of this space because the ceramic program has been operating since the beginuiug of the sunmier of 1997. This program reaches out to high school females and is entitled "Portage from Youth". An instructor has been enlisted to lead the classes which are offered weekly. Mr. Cummiugs said that in order to involve the community in the project more broadly it is intended that some parts of the pmject will incorporate intergenerational prograrr,ming. Because the project is not fully operarional, it is not yet serving the community as anticipated. The Portage Program is serving 10 students currently, and the bike repair shop is not serving anyone. Kathy Moriarty, who works with the Dayton's Bluff Community Council, said that they are trying to get a voIunteer to run the bike shop. Originally they were going to get funds from an anti-dtug program, but the money is no longer auailable. This change could prove to be a fomudable barrier to operating the bike shop. Contract Compliance: The project serves the azea of Dayton's Bluff: Mr. Cumnungs defined the area of service to include most of the south east section of Saint Paul. The STAR con�act was entered into June 14, 1996. The implementation of the improvements began during the summer of 1996 and was finished by the spring of 1997. This pmgress schedule complied with the anricipated contract outline. The STAR funds were used for a portion of all the ixnprovements in this project. The improvements include insulation, a boiler, and an ea�terior basement access. , �� , � � , , � L � � , , � � 1J � � ' � q�-�a� The labor for this project was entirely contracted. There was no sweat equity involved in the implementation of this project. Comments: Because Mr. Cnmmings is a real estate agent and contractor, he has a keen interest in the neighborhood and housing component of the STAR program. His company has been responsible for the labor necessary for the rehabilitation of the Swede Hollow Cafe. Mr. Cnmm;ngs identified the City's deferred loan program as being good. It helps promote home ownership and commitment to the neighborhood. He believes that there should be more funds available to the middle income, middle age segment of the population. Accarding to Cu*nm;ngs these residents are critical to the stability and sustainability of the neighborhoods. Perhaps the required match can be more highly leveraged by the individuai than aze some of the current progranis which require a one to one match. � , 96.009 Hamline Branch Library Public Improvements Grant Amount: $15,000 Hamline Branch Library Association Description: The objective is to implement signage,landscaping, and security lighting for the front yard ofthe � Hamline Branch Library, resulting in better visibility and increased patronage. This pmject is in the final design phase since several modifications were needed to improve the long- term maintenance needs of the Hamline Branch Library staff. A sprinkling system currently is being designed for the site by Larry Kasella The bid for the sign and lighting will be prepared during Pebruary of 1998, by City design staff in LIEP. Some modifications were required to accommodate a lighting system that would be compatible with the type of snowfall expected during the typical Minnesota winter. Triesta Brown, the project manager, indicated that thera were two major setbacks in project — implementarion. At the recommendation of Ken Dehkes, Hamline Universiry's landscape architect, � a site review was conducted to analyze conditions that would affect design such as snow removal, library hours, sunlight and shadow patterns during different seasons of the yeaz, health of the trees currently on site, and runoff and drainage patterns that currently e�cist. Ttris work was completed in ' September, 1997. This took more time than anticipated. Nea�t, a key community member from the Gazden Club uneapectedly passed away in August, 1997. The deceased was going to assist in the project by malang connections with local nurseries. Previously, it was thought that with the Garden , Club's assistance, the pmject could receive design guidance from the nurseries at no additional cost. While this still is possible, Ms. Brown is investigating obtaining the assistance of a master gardener who needs volunteer hours to maintain the master gazdener credential (by suggestion of the , Sustainable Resource Center staf�. Originally, conceived as a project designed around personal relationships, the project has become one where cold calling for nursery stock now is a necessary component for project contpletion. While Ms. Bmwn is prepazed to be flexibie azcd do whatever is � needed to complete the project, she is not a paid staffperson, but is an unpaid volunteer of a very small SOlc3 non profit organization that has no staff whatsoever. When she became ill in November, 1997, and was unable to work again until mid-January of 1998, there was no one else � available to move the project forward during that time period. The contract was entered into on August 30, 1996. According to the contract, they ha�e two years to complete the project. Ms. Brown indicated that everything will be completed by that time. Comments: Ms. Brown thiuks that the STAR Program is moving further away from its origianl intent of helping neighborhoods. The Neighbarhood Parkiership Program (NPP) was more useful because it was possible to tie a pmject in with other neighborhood planuiug efforts and into several public funding sources. Another limit of the STAR Program is that much of the regulaz STAR is earmarked for loans. Small organizations cannot service the loans, so they pass up the program. Without administrative allotments, many organizations can't devote sufficient time to the project to allow it to come to fruition. She understands the state lesgislature's need to direct the program toward proj ects which require bricks and mortar only, but it is unrealistic and a serious limitation .� i ' ' , � , ,, � , � ' ' ' � � ' ' �� .� to each projecYs fulfillment. Brown said that maybe the state legislature needs to be petirioned on this point. She aLso recommended that there be funds available for adminis�ative purposes or that an incentive to limit aduunistrarive cost be offered in conjunction with a source of admiuistrarive funds. Ms. Brown thinks that STAR funds should be combined with CIB. She thinks that the review process of CIB is conducted by people who are more lmowledgeable regarding the ways in which different interconnected funding sources can be combined for the greatest leveraging effect, especially federal and state sources. Even though these funds have become less plentiful, they still aze an important source of money that applicants aze likely to hy to combine with STAR either directly (which actually happened in the first round of funding) or indirectly by combining a STAR funded project with another related project that uses a different funding source. � u 96.011 Skyline Towers Playground Project Grant Amount: $20,000 Lexington Hawline Community Council Description: Tfie objective ofthis project was to construct an open space and playground at Skyline Towers. This project has been implemented. The playground is located on the northeast corner of the St. Anthony and Syndicate intersection. The park is divided into two play areas, each of which have a swing set and a Little Tikes Play Complex. Additionally this 3/4 acre site holds a circular sandbox and open play azea. All of this is accessible via asphalt pathways which aze equipped to handle wheelchairs. With the development of this playground, the adjacent bousing compleac,1247 St. Anthony Avenue, is provided with a quality recreation space. According to project manager, CYuis Dart, ttris area serves as a backyard for the residents in a high density housing complex. It offers safely and convenience to the residents. No longer do young children haue to cross Interstate 94 to find an acceptable play azea. � Skyline Towers Playground Because of its size, location, and ownership most of the pazk attendees aze from 1247 St. Anthony. This complex houses over 200 children undet 12 years of age and another 50, 12 to 18 years of age. In light of space limits the number requiring services at this location could not go up much more. Mr. Dart indicated that those who use the pazk from outside the community aze generally connected to the residents in some way. Additionally, this playground is extensively used by a child care program which is located at 1247 St. Anthony. Previously they had a small play azea. The space of the previous playground has been included in the new development. m Contract Compliance: /� � � . The azea served by the project is University to I-94 and Lexington to Hamline. The exact parcel is the same as the one indicated in the contract. The STAR contract was entered into on August 30, 1996. Consh began in Apri11997 and was finished by June 6, 1997. The STAR funds were used to prepare the land at the playground project. The lot previously had a pazldng lot on it. The land was excavated to prepare for the play space. There are receipts in the central file verifying expenses. The expenses were excavation, landscaping, irrigation, benches, waste receptacles, fencing, labor, play equipment, and other items. There was volunteer labor involved in this project. Principally the participation has been present in the landscaping aspect of the project. The building's committee has been instmmental in the establishxnent of a Playground Caze Committee. This group is just getting underway and will partly be responsible far the future of the playground along with building maintenance at 1247 St. Anthony .. 96.013 Saint Paul Access Solution Project Metropolitan Center for Independent Living Descripfion: GrantAmount: $15,000 The objective of this program was to manage a revolving fund that would allow low income people with disabilities that live in the St. Paul area to conshuct access solutions such as ramps and low tread stairs Tlus pmject has been implemented. Four ramps and five sets ofhandicapped accessible stairs were installed. Overall eight Saint Paul househol8s were served. This project uses a modutaz access design which makes the steps and ramps portable. Some of the ramps have been recycled as many as six times. This is a positive design feature because many of the disabled users have relarively short life eazpectancies. Because of the recent aature of the Saint Pau1 project no equipment has been recycled. The program is set up like a revolving loan. The recipients haue to pay a monthly rent fee which does not charge interest. After five yeazs the renter will own the ramp. Jessaniiue W. Stevens Carroll Address 943 St. Anthon 1496 N. Gmtto 1806 E. Arlingf 1023 Tonnine & stairs More people aze able to live independently because of this project. Without it some may even be forced to be institutionalized. This independence is important because services by agencies are being curtailed . For example, Metro Mobility, a major provider of transportarion to the handicapped, will no longer carry disabled customers upstairs. The cost effective and portable access will make it easier all azound. As stated above eight households are being served by this project. The recipients aze half male and half female. About 75% are seniors and the rest aze not. 25% were African American and the reminder were White. 100 Q�- �� Contract Compliance: This project served all of Saint Paul. The STAR contract was signed 7uly 12,1996. Construction began in 7uly of 1996 and ended May of 1997. The STAR funds were used for the materials and labor necessary to build the ramps and stairs. Because of the contract eapiration, July 12, change in project leadership, and eligible inquiries from Saint Paul residents, not all of the funds were disbursed. Volunteer labor was present in four of the eight access improvements. Volunteer labor was offered by the AT&T Pioneers as well as the Jaycees. St. Paul home with a portable access ramp 101 96.014 John Alden Square Gazebo Grant Amount: $8,420 Neighbors of John Alden Square Description: The objective of this project has been the construction of a quality 21 foot in diameter, 10-sided, wooden framed gazebo, with fixll foundarion, security lighting, and a drinlang fountain/water source. The gazebo is nearing completion at this point. The basic shucture is done, as is the shingled roof and surface flooring. Yet to be completed aze inside seating, steps, and a handicapped-accessible ramp. Location of the gazebo is on Gibbs Street, between Brewster Street and Brewster Place. Planniug and building the gazebo has indeed been a community project, drawing neighbors together and creating an enhanced sense of community. For instance, Reade Adams, the project manager, said that neighbors have begun helping one another with home improvement projects as a result of their experience of working together in Alden Square Pazk. The gazebo project has also drawn people out of their homes and into public space, creating new friendships and renewing long-term relationships. A majority of the homes azound John Alden Square aze single-fanuly, owner-occupied dwellings, although there are a number of apartment complexes on Brewster Street, one block east of the pazk. The Brewster Apamnents, which aze closest to the park, aze home to a large contingent of Chinese university students and their extended fanulies. Although language differences aze a barrier to fluent communication, some parents and their children have attended various functions, and the family elders seem to enjoy the beaury and open spaces Alden Square provides. Linnea Home, a senior citizen group residence, is located one block north of the pazk. A small group of its more able- bodies residents has taken an interest in the gazebo project and conhibutes time and labor to the extent each person's age and physical condition allows. The lazgest gathering at the gazebo, a concert by the Saint Anthony Park Band, drew upwaras of seventy spectators. Contract Compliance: Locarion of the project is John Alden Square, as was designated in the contract. Ms. Adams noted that the gazebo and pazk gazdens serve a three block radius. The STAR contract was signed August 9, 1996, although construction began in July of that yeaz. Completion is expected by summer of 1998. Befare the STAR funds were disbursed, the Neighbors of John Alden Square had raised the requisite matching funds through volunteer labor hours, cash, and in-ldud donations. STAR funds were used primarily for lumber and foundation concrete. The original application and cost estimate for the STAR grant did not include a handicapped-accessible ramp, and several phases of construction required materials not specified in the blueprint, so addifional funds must be raised to cover these cost overruns. 102 � E � �: . Without the commilment of neighborhood volunteers, the gazebo project would never have become a reality. Except for foundation excavation and concrete work, volunteers haue handled every phase of the building process, donating more than 5,000 hours of time to construction and finish work. ,�, Comments: Ms. Adams noted that the project hit a few snags at the beginning because the original �� project manager, Jim Rogen, moved to northem Minnesota during the crucial start-up phase. She also said that the STAR contract was difficult to interpret and recommended that an informational � session be provided for future gantees to cover the requirements and limits of the contract, as well as non-compliance related issues. For construction projects, she suggested that a procedural checklist be provided that listed all the steps necessary toward obtaining a building permit. Another � idea that she thought might be helpfui to some cash-poor neighborhoods would be to release some of the STAR funds prior to presentation of receipts. Other suggestions included: 1) creation of a consulting team for STAR grant recipients; 2) appointment of a piiinary contact person with the � STAR program who would be familiar with grant requirements and project details; and 3) cooperative agreements with local suppliers to provide discounts on construcrion materials for STAR grant projects. � Editors Note: A PED account officer is assigned as the primary contact for each STAR project. Gazebo at John Aiden Squaze 103 1 96.016 Saint Anthony Park Facade Improvement Program Saint Anthony Park Business Association Description: The obj ective of this program was to spur building and business owners in St. Anthony Park to undertake permanent ea�terior improvements to their properties (many over 50 years old) with small grants (not to exceed $2,000 each) to 10-14 members of the St. Anthony Pazk Business Association. This project has been completed, with a total of 17 grants awazded. The improvements were extemal and consisted of items like windows, doors, and signage. The ftnancial matches on the projects were at a minimum of $1 private to $1 public. Some of the matches were as high as five to one. The 17 improvements that were created aze: Pazk Hazdwaze (2 ro ects Ado tive Families Panino's Restautant Debbie's Custom Hair (3 Hampden Pazk Foods (2 Kimly's Tailor & Gifts ro'ects ro�ects Milton S uare 4 ro'ects Rosa Mundi Mannin s S eed Mazket Because of this project the Saint Aathony Park Business Association has enriched its relarionship with its members. Sue Davern, the project manager, said that this acts as a real benefit of memberslup. Moreover she said the STAit helps the association keep in contact with Saint Paul's Depariment of Planning & Economic Development. The facade improvement proj ect has nurhued these vital nexuses. Additionally because the STAR funds were matched in many cases at a level greater than one to one, there has been mare inveshnent in the business district than originally expected. The project improvements aze serving the ten business owners wflo implemented tfiem and fheir customers. One of the businesses that received a grant, Adoptive Families, is a new business to the neighborhood that brought 12 new jobs. Contract CompGance: The businesses which have been awarded grants ha�e generally been within two blocks of the intersection of Como Avenue and Carter Avenue. Two of the recipient businesses are not in that business district, but they are in Saint Paul and in the neighborhood represented by the business association. The azea served by the association goes from the northetn border with Roseville to Grant Amount: $20,000 � 'Ll 104 � � � � � a�-c�� Interstate 94 and Hennepin to Transfer and Cleveland. This is coterminous with District 12, and it agrees with the contract. The STAR contract was entered into July 5,1996. The first facade improvement began in July 1996, and the last one was finished in December of 1997. Although sweat equity was used on each of the improvements, none was recorded as part of the match. This occurred because there was sufficient money to make a match without keeping track of labor. � Comments: Ms. Dauern indicated that her elcperiences with the STAR Program have been great. The projecYs account officer, 7ohn O'Brien, has been gteat according to Da�ern. She said people at PED seem available and open to questions. � � � � � � � � O � � � f [ITj. � 96.017 Salvation Army East Side Corps Community Center Parking Lot Enhancement Salvation Army of Saint Paul Grant Amonnt: $20,000 Description: The objective of trris project is to develop a parldng lot for 22 cazs across Lawson Avenue north of the new Salvation Army East Side Corps Community Center. This project has not been implemented because the Salvation Army has not acquired the site where the pazldng lot will be located. The property which is in tas forfeiture is adjacent to their Payne Avenue center. Once they obtain the property a pazldng lot will be placed on it. The lot is eapected to provide 22 additional spaces to serve tkeir new East Side location. It is eapected that the additional parking will be sufficient to handle the pazldng traffic created by the Salvation Army. It will assist the community by easing the demand for on-street pazldng. The pmject will serve the customers of the many programs that the Salvation Army offers. It will serve up to 22 vehicles. Contract Compliance: The pazldng lot is still intended to be placed on the pazcel proposed in the contract. The parcel is across Lawton and north of the community center. The contract was entered into August 1996. Although ttus project has not been started and was expected to be finished in 6/96, the puking lot is still intended to be paved. LJltimately this is e�cpected to be completed by the spring of 1998. The func}s are ptazmed to prepare the lot for development and paving. Volunteer participarion during implementation is unplanned for and not expected. 106 �J � � CJ � � � � � � � � � � � � � � �� .• 96.019 Stutcman Block Facade Upper Swede Hollow Neighborhood Association Description: Grant Amount: $20,000 The ob}ective of this project is to improve the facade of the Stutzman Block. This is the second phase of the renewal for this building located at 725 E. Seventh St. Improvements included in this effort aze concentrated on the west and north elevations of the building. Originally there had been a building to the west of 725 that was demolished a number of years ago. The newly exposed exterior wall consisted of fiberboard covered with vinyl siding. There were no window openings. The staircase to the second floor apartment, previously located inside the demolished structure, was not rebuilt to code. During this phase, windows on the first and second levels and a door to the adjoining patio were cut into a formerly blank facade, the exposed chimuey is being resurfaced, combination stomilscreen doors aze being installed on the north facade of the building, the staircase to the second floor apartment was relocated to the north side of the building, and the west end of the building was insulated, sheathed with plywood, resided with wood siding, and painted. This rehabilitation project helped provide the Upper Swede Hollow Neighborhoods Association the opportunity to demonstrate mazket demand for specialized, non- franchised commercial activity in the Dayton's Bluff azea. It demonstrated the aesthetic and economic benefits of using historic preservation as a development tool in Dayton's Bluff. Residents of the neighborhood demonstrated as well as witnessed the commercial strength and potential of their neighborhood. Cazol Carey, the project manager, stated that there were a number of spin-off benefits. Exterior building improvements l�ave made it easier to atiract residential tenants into apartments in the building. The cafe brings many professionals working at large nearby employment centers such as 3M, the Lafayette Park office complex, and Metro State University into the community to spend money, and learn about local housing opportunities. A local business, A Toast to Bread, supplies bakery products and soups for the restaurant, and snmmer produce is purchased from the Dayton's Bluff Children's Gazden project. The cafe's success has also imgroved the marketabi2ity of commercial space in the proposed redevelopment of a mixed-use building at 6th and Maria. Contract Compliance: The rehabilitation occurred at the address indicated in the contract. The contract was signed on July 26, 1995. The facade improvement began in June of 1996 and is expected to be completed in October of 1997. The STAR funds were used to put windows and a new door into the west side of the building; insulate, sheath, reside, and paint the west facade; resurface the cl�inuiey; relocate and rebuild the exterior stairway to the second floor apartment; and install new storm/screen doors on the north side of the building. 107 � 1996 Neighborhood STAR Loan and Grant Program 96.103 394 Dayton Avenue Rehabilitation Project Grant Amonnt: $40,000 College of Visual Arts Loan AmounY: $60,000 Description: The STAR funds will be used for the rehabilitation of 394 Dayton to serve as the College of Visual Arts' library, supplemental media center, additional classrooms, offices, and studios. STAR funds have also been used to develop an adjoining pazking facility. A former aparhnent complex is being converted into a library and office azea for the College of Visual Arts. The building has been gutted, the interior has been reconfigured, and a dilapidated addilion that was on the back of the building has been tom down. As a result of these changes iY was possible not only to create space for the library but also to add a new addition and allot office space. The space will be used for liberal arts faculty, a learning resource center, a cazeer resource center, and a study area for the students. As of August 7, 1997, there were a few more things that needed to be done which included a new exterior door on Dayton, and landscaping for the yazd. This pmject will allow the students more space to study in the library. It will free up space at the college's adnunisiration building , 344 Sununit, to make a class room and a conference room. The rehabilitated building will provide space for the faculty to prepate for lessons and confer with students. The improvements will generate a more attractive environment for students and could increase enrollment and in turn increase faculiy. This pmject will help the CVA meet an improved librazy requirement placed upon them by the North Central Association of Colleges and Schools to secure full regional accreditation . Full accreditation will make it easier for CVA students to transfer and to progress into graduate school. This will make the CVA more attractive and competitive in the field of higher education. T'he neighborhood wiR benefit from the project because a blighted building will be improved and Yhe expected increase in activity and attendance at the CVA will bolster the businesses in the azea. The renovated building will serve the 230 students who attend the CVA, its 47 faculty, the administration, sutmunding properties holders, and area businesses. In particulaz the increased strength of the CVA will help reinforce the local arts scene as present in Lowertown and its annual Art Crawl. Moreover when the library is finished and a security system is installed it will be open to the public. ��'. � � Contract Compliance: Li � � � � � � � � � � ;� � � � a�-iag This project has been implemented at the site discussed in the contract. The address is 394 Dayton. The area served by this project includes Saint Paul and its environs. The student body originates from numerous places. In total the students come from 12 states and 6 countries. The STAR con�act was signed on February 6, 1997. Construction began on April 10, 1997 and was completed by the fall of 1997. The building is now being occupied by the coliege. The STAR funds were used to demolish the reaz end of the building and replace it with a new entrance. The entrance area includes a handicapped equipped bathroom and ramped accessibility. The interior was gutted, sheet rock will be placed on the walls, and the interior space was configured to allow for four rooms on the second floor and four on the first. Volunteer participaUon was not present during the implementation phase save the movement of fiunishings and resources by a few students. Comments: The media specialist, Mary Beth Frasczak, said the new library space is critical to CVA. Now the students have space to spread out and look at drawings, sketches, and designs. 109 � L1 96.106 Gateway to Como Park Lighting Como Commnnity Council-District 10 Grant Amount: $41,207 � Description: The objecrive of this project is to install decorarive lighting on the sma11 commercial strip on Como Avenue neaz Sneliing Avenue as part of the neighborhood small azea plan. The plan calls far the promotion of business development, property maintenance, and safety. The project will have siguificant visual impact and complements the 1995 street impmvements. STAR funds will be used to fund 75% of the cost to install decorateve lighting on Como Ave. beriveen Snelliag and Arona St. This project has not been implemented. The proposal is to install 18 lamps along Como east of Snelling. The Department of Public Works eapect that this will be too many lamp for the designated stretch of Como. Thus they might have to lower the number of laznps or extend the area. Because this pmject has not been implemented it has achieved nothing but it is e�cpected to generate more business acrivity, maintenance, and safety. This has been suggested because recent street paving and landscaping on Como ha�e resulted in the greexring of the azea and increased business occupancy ntes. Additionally it is eacpected to have a wide impact because of its pmximity to the fair grounds, the Como Pazk and Zoo, and Snelling Avenue. The project will serve the businesses on Como. It will in turn serve people from outside of St. Paul as well as within because of the regional popularity of surrounding attractions. It is undetermined how many it will serve Geographically this project is to be located between Snelling and Arona on Como. It has been proposed that it be extended to the west side of Snelling but that has not been detenuined. Theproject skould begin in October.194? and be finished by November 1997. T7�e STAR has not made a difference as to the speed at which tlus pmject is being implemented at least not up to this point. No STAR funds haue been used. The reason thaY tlus is taldng more time is because an assessment is involved. Each property owner had to sign an ageement that they would pay annual assessments. All but two of the properiy owners agreed, and since then the two business that withheld their approval have moved. With an assessment the city council must approve the improvement. The approval of the unprovement has not been reviewed by the council and should be so by October 1997. Neighborhood participation will not be involved during the implementation phase of the project. Public Works will handle the execurion of the plan. � 110 � � � � � � � �� ,� � � � �8- iag 96.109 Arcade/Maryland Face to Face Face to Face Health and Counseling Services Description: Grant Amount: $ 9,050 Loan Amount: $39,370 The objectives of this project aze to landscape, construct a play azea, resurface a parking lot, light ffie pazldng lot, and stucco the south side of the building at 1165 Arcade St. The STAR project at 1165 Arcade has not been implemented. The project is expected to include a gazden space and play azea on the west side of the building and a reconfigured parking lot and refurbished exterior wall on the south side. The newly designed and resurfaced pazking area will eliminate an entrance and lane that run next to the building. A landscaped green area will occupy the former lane. The side entrance to the building will be ramped. A new lane will be located along the southwest portion of the property. A row of pazldng will be lost through the unprovement. 53 spaces will be available. The south side of the building will be stuccoed again. The grant portion of the funds will create a green space azound ffie back. Former loading docks will be transformed into parios. A peace garden will be established. A basketball court will be set up. With the improvements the lot and building will be safer and more visually appealing. Accessibility wiil be increased and liability should be decreased. The side of the building which leaks and has sustained water damage will be repaired and 'unproved. The children who attend the Academy and from the neighborhood will have a safer and more convenient area to play. Overall it is expected that the project will instill a sense of pride, peace, and respect in the clients and neighbors. The azea is sprucing up. A nearby flower shop and laundromat have undergone renovation. However these developments precede the STAR project, and thus they are probably not spin off effects. These improvements will serve the 3,000 clients that Face to Face serves over the course of a year. The staff is served by the gazden and the parking lot. The youth aze served by the play area. The parking lot serves the neighborhood children wka sometimes play in it by pmviding a safer envirorrment. Contract Compliance: The East Side is served through this project. In particular the Payne / Phalen and Dayton's Bluff neighborhoods receive benefit. The wider community of Saint Paut and its environs aze also served. The contract was signed on Febniary 7, 1997. The project should begin on the third week in August �, 1997 and be completed by September 26, 1997. This progress does not meet the expectations set forth in the contract which showed completion of the project by the end of July 1997. Ms. Ricketts cited the main reason why the project took longer than eapected: before project implementation can � begin, the City must approve the vacation of the alley. This approval has not happened yet and has taken longer than expected. � �, Community participation will be a component of ttris project. The peace garden at the rear of the building will be planted by volunteers. 111 � � Ms. Rickets said that the grant element of the financial package made the STAR funds more � attractive. She indicated that the bank seemed to trust Face to Face more than did the City. The � bank did not place as rigorous a set of requirements on them for securing the loan as did the City. The project is now 90% complete as of the end of November, 1997. 112 � � � � � q�- � a� 96.114 Minnehaha Mall Enhancement FYogtown Merchants Associarion Descriprion: Grant Amonnt: $90,000 The objecrives of this project are as follows (i) Update and enhance main entry sign, make high impact enhyway enhancements (2) new center cut driveway (3) define "driveways" in pazking lot, add speed bumps, create a center "town square°, banners and other enl�aucement, (4) and make facade improvements to retail structures. � The project is 75% completed. The entrance, new signage, and pazldng lot definition have been completed. Facade painting was started in the fall of 1997 and will be completed in the spring of 1998. Landscaping will be completed in the spring, as well as more cement work and banners. � � �� It is expected that this project will provide a more pleasant environment for customers to shop. Despite the impxovements Mr. Stuber indicated that the rent should not have to increase. It might stem the flight of commerce from the Frogtown neighborhood. The occupancy rate at the plaza was at 100% before the closing of Snyder Drug Store in late December, 1997. There is work going on to locate a Best for Less food store in that space. The owners of Gala and the owners of the property that Snyder's was in aze worldng with the City's Dept. Of Planning and Economic Development to make this happen. The Best for Less would be run by the owners of Gala. � ` The enhancement project is eapected to serve the community by maintaining the viability of the Minnehaha shopping plaza. Despite I'united traffic flows along Nlinnehaha and Pierce Butler this renovation may act as an invitation to keep people irading in the neighborhood and even bring � people into and through the neighbarhood. Many people auoid the Frogtown neighborhood, and this enhancement might alter people's perception. In this climate business acrivity at the mall may even increase. Contract Compliance: The azea that will be served by the pmject extends from the raikoad line on the north to University on the south and Lexington on the east to Dale on the west. The actual site of the improvement , Minnehaha Mall, is still intended as such. The original STAR coniract was signed on January 6, 1997. It was lost by both sides. A new copy was re-signed on July 18, 1997. Mr. Stuber expects that the project will get underway by the end of August 1997. It is should be completed by November 1997. The STAR funds will be used for signage, parking lot improvements, painting, and landscaping. There has been and there will be community participarion during the implementation of the proj ect. A volunteer consultant has coordinated all the design work for the mall. Sweat equity will be part of the project in terms of the landscaping. 113 96.115 Large Format Printers Giles Guggemos, Inc. Description: Grant Amonnt: $ 10,000 Loan Amount: $145,000 The objective of this project is to purchase and install a Da Vinci 5700 printer. The project has not been implemented. As of August 7, 1997 Mr. Guggemos was in final negotiations for a lazge format printer. Tlus printer has been custom-designed in order to create lazge two-sided banners rapidly. Speci&cally these banners are being tazgeted for trade shows, but fhe mazket is eacpanding to other venues. The machine will be able to paint a banner that is 100 feet by 18 feet. It can paint different images on each side. It will be able to create images on many mediums without seazns. The printer has three resolution settings: low, medium, and high. The production rate for low resolution is 700 squaze feet an eight hour shift; medium is 400 square feet, and high is 210. This machine will be the first of its kind in the United States. Moreover it is ecologically sensitive because it does not use solvent based inks rather water bome inks. The lazge format printer will be set up at their priat shop at 2303 Wycliff. The custom-designed printer will allow Guggemos to offer a superior pmduct more quickly. Mr. Guggemos will be able to continue to charge his clients the same rate per square foot as he did with the last generation of technology because he received a competitive deal on the price of the lazge format printer. This savings was possible because the over-seas manufacturer of ffie machine wants to pmmote this equipment in the United States. Additionally the new printer's high quality product is e�pected to propel Guggemos by e�cpanding its customer base. As a resulY it is also elcpected that two new jobs will be created to staff the new equipment. The presence of this lazge format printer will also help Saint Paul businesses. Guggemos intends to purchase supplies and materials for the printer from three Saint Paul companies. Because of the nature of the product that Guggemos will be supplying, its product will serve a national market. Mr. Guggemos said that although most of its clients are outside of the Saint Paul area that its central location and access to a hub airport makes it ideal for the vast market he is serving. As stated above the project will benefit Guggemos and staff as well as suppliers in the Saint Paul azea. Contract Compliance: This printer will serve the entire United States market with a uniquely clear and ecologically friendly means of creating banners. The contract was signed February 7, 1997. There ha�e been a few delays in getting the printer. First, Mr. Guggemos leazned after weeks of inirial negotiations that the goup they were talking to did not represent the manufacturer of the printer. IIe then hired a I�owledgeable representative to work direcfly with the manufactureis. Second the price chazged took substantial time to negotiate. 114 a�� L� The original price was expected to be $600,000, and currenfly it has been lowered to $200,000. Lastly it has taken more time than expected because the specifications applied to this machine are unprecedented. On August 7, 1997 it was believed that the final agreement and purchase of the printer would be completed within a week. The printer is expected to be delivered within five weeks of that time. The STAR funds will be used on the main flat bed reel to reel printer and the supporting computer components. This is expected to amount to $200,000. Neighborhood participation has not been an aspect of this project. Comments: Mr. Guggemos thinks he is being penalized by PED because he received a better deal than he originally thought. Fiis STAR grant was lowered from $20,000 to $10,000 once it was realized that the printer's price would be lower. He is also concemed because the STAR program starts accruing interest to the loan one year after the contract is signed rather than one year after the money is drawn. Mr. Guggemos believes his situation has extenuafing circumstances and that he should be given the yeaz grace period following the disbursement of the loan. 115 96.119 Highland Village Revitalization Grant Amtount: $99,200 Highland Area Community Council & Highland Business Association Description: The objectives of this project will be to improve the streetscape and customer pazldng in the heart of Highland Village. It will be accomplished by enhancing and adding customer parking in tlus vibrant commercial azea It will also be done by updating and repairing improvements made under the Highland Village Plan, completed in 1987, repairing and adding planters, fencing, installing trash receptacles and new landscaping of both public and private property. This is a cooperarive effort between the district council and Highland azea businesses and property owaers. This project has been partially implemented. The initial pmject included loan and gant funds. The loan component of the pmject was dropped in January 1997. As part of the project the planters which line the intersecrion of For3 Parkway and Cleveland haue been refurbished, but not replaced as indicated in the contract. Evergreen shrubs that were in the planters have been replaced with flowering perennials. The three medians that converge at the intersection of Cleveland and Ford ha�e been replanted, wood chips, and bricks have been laid. Three business store front have been renovated, and seven more are sIated for renewal. Additionally bike loops wiII be added along Ford and Cleveland, parlang lots with a total of 130 pazking spaces will be repaved, and fencing will be added at the eastem end of the properly on the southeast comer of the intersection. Because of the grant and loan money that the STAR program awazded to improve HigUland Village the business association for the community was able to offer its members an opportunity to receive an addirional resource that tUey otherwise might not have had. This service reaffirmed the role of the business association for the village. According to the pmject coordinators, Shawn Bartsh, Beth Berg, and Crayle Summers, the improvements to the village gave the community a better commerce center in which to conduct transactions. Because of the physical improvements, Highland Village is more appealing and competitive. Business aze staying and growing stronger. The improvements are giving them an edge. This project serves the residents of the Highland Park neighborhood. It also serves customers from outside the neighborhood who patronize the village because of its unique services and ambience. Contract CompGance: The area served by this project includes all of southwest Saint Paul. It covers an azea from the Mississippi River and West 7th Streei to the Grand Avenue Commercial Zone. The STAR contract was entered into February 7, 1997. The implementation of the improvements began in the early part of 1997 and should be completed by the end of 1997. 116 � � � j� , ♦ The STAR funds were used to pay for a portion of all the improvements which were part of this project. The money has gone toward three business facade unprovements and creating additional visual complements and physical amenities at the intersection of Ford Parkway and Cleveland. � There has been no sweat equity present during the implementation stages of this project. All of the required labor was contracted. %i Comments: The pmj ect coordinators stated that this has taken more time that they eacpected because ;� they did not have sufficient resources to administer the project. With some allohnent toward � administration fees the project would have been accomplished more rapidly in their view. Ms. Bartsh, one of the project coordinators, said that getting the match was not too difficult but finding the time was. � � � � � �� 117 � � 96.122 Sel-Dale Laundromat John F. Krebsbach Jr. Grant Amount: $30,000 � Seed Capital: $20,000 Description: The objecrive of this project was to acquire and renovate 662-664 Selby into a laundromat . This project has been implemented. A run down vacant building that once served as a night club was gutted and partially razed. Two of the walls were replaced and part of the roof. The 3,000 squaze foot interior was prepazed to be converted into a laundromat. The overall pmject cost approximately $600,000. It houses 38 washers and 36 dryers. It is also equipped with handicapped accessible bathrooms. As part of the project a garage direcfly to the west of the laundromat was tom down. A pazldng lot was put in its place. The addresses of these properties aze 662 & 664 Selby respectively. Mr. Krebsbach, the laundromat owner, also owns a business which rehabilitates housing. He generally does not put washers and dryers in the houses and duplexes which he rents out. Additionally he realized that there were no public laundry facilities between Grand and University, so he decided that this was a good niche and a convenience to some of tris tenants. Additionally Mr. Krebsbach saw flus as a convenience to the neighborhood in general. His laundromat offers laundry delivery to shut-ins at a discount. Along with other near by development the laundromat is adding to the attitude that ttris area can once again be a thriving commercial district. The Sel-Dale Laundromat has a customer base of 500-600 faznilies. Its drop off service has appro�mately 40 customeis and is increasing. The racial mix of the laundromat is diverse with no one group being a majority. The business has created three full-time jobs and a part-time job. The pmject occurred at the site proposed in the contract. Mr. Krebsbach indicated that the service azea for the laundromat is from downtown on the east to Sne]Iing on the west and Grand on the south to Minnehaha on ttte north. The contract was signed on October 3, 1996. Construction began in October 1996 and was completed by January 25, 1997. The winter weather caused up to a month delay according to Krebsbach. The STAR facilitated the delay because of when its cycle begins. Mr. Krebsbach did complete the entire project within the prescribed times of October 1996 to August 1997. T'he STAR funds were used to pay for water and sewer access and architect bills. These amounted to $50,000. Receipts and the reimbursement report in the ceniral file confirmed these eapenses. The receipts include expenses for plumbing, roofing, IIooring, and elechic. Mr. Krebsbach was disappointed with how late in the year lus project had to start in light of the STAR cycles. He could not start anything until the contract was signed and that was not until October. Winter slowed him down. In fact lus equipment supplier Speed Queen wanted to penalize him for startiag later than they agreed upon. He was also discouraged that he had to pay sewer and 118 ��- �a� water access charges. West Saint Paul offered to chazge him no access fees. He did not understand why Saint Paul would chazge despite the fact that they aze eagerly trying to attract new businesses. 119 � 96.123 Builtling Community and NeigLborhood Capacity Lao Family Commnnity of Minnesota Description: Grant Amount: $25,000 � The objective of this project is to repair the roo� flooring, windows, interior walls, and pazking lot of the Lao Family Community Center. In addition landscaping of the siurounding grounds is planned. This project is partially iunplemented. The Laos Family Community Center is currenfly being renovated. A flooded second floor auditorium has had its roof repaired. The floor of the tYus space was linoleum but af�er the flooding it began to crack and curt up. It has been replaced with a terrazzo floorwluch is set in concrete. The auditorium is 3,100 squaze feet. Mr. Vang, the project director, said that they still plan to repair the pazldng lot and the windows. Questions haue come up abouf the eIigibiIity of the roof and windows. Tfie roof was fixed rivo months before the coniract was signed, and the window work is for tinting. According to Joan Trulsen the first improvement is reimbursable, but the second is not. Mr. Vang did not discuss interior wall improvements, but while visiting the site it appeared that volunteers were painting the auditorium. Appazently they do not plan to use STAR funds for that part of the project. This project has helped the center pmvide an appealiug meeting azea for the community. Mr. Vang said with the new floor it will be easier to clean. It is an asset to the entire community not just the Htnong population. Mr. Vang said that on average two groups a day use the auditorium. The sizes of the groups vary from 50 to 400. However use is not limited to the East Asian communities. In fact, according to Mr. Vang 40% of the auditorium's usage comes from the "mainstream" population. He said they like it because it is close to the capitol, close to downtown, and there is sufficient pazking. Contract Compliance: All of the STAR improvements have or will be done to the property at 320 W. University. This information concurs with the address set forth in the contract. The geographic azea that the project serves is wide and includes the Twin Cities and much ofMinnesota. The STAR contract was entered into December 15, 1996. They began with the roof in November 1996. The improvement of the auditorium floor began in mid-May 1997 and was completed by 7une 20, 1997. Mr. Vang believes that the project will be fully completed by the end of 1997. The STAR fixnds have been requested to reimburse expenses associated with the clean up and laying ofthe new floor. These e�tpenses were $3,300 and $30,000 respectively. Mr. Vang thought there was about $5,000 still not reunbursed. He plans to use that on the pazking lot and windows. f`�17 \� � � � � � � �" � � � � � � � � � � � I � �! Mr. Vang indicated that all the work was contracted out. He said there was no sweat equity involved. It appeazed that there was a volunteer effort undenvay involving the painting of the auditoriunn walls. Mr. Vang did not mention this but perhaps they are not using it as part of the match. Comments: Mr. Vang thinks that if the City really wants to build in the community that the STAR should not require a match especially on the grants. He said that it would be easier to borrow the money from the STAR and pay it back than to be given half the money and have to raise the other half. 121 96.126 MacLaren Hill Condominium Association Reconstruction Project MacLaren Hill Condominium Association Loan Amonnt: $270,000 Description: The objective of this project was to correct construcrion and design defects by the original developer, contractors, and azclutect. Work included eliminating garage gas infiltration, addressing serious water infiltration through site improvements, replacing rotted decks on the condominiums and entrance canopies on the townhouses, and replacing rotted siding and painting interiors and exteriors. This project has been implemented as the associarion has determinecL Because of structural defects and weathering many of the wooden decks had become unsafe and had to be closed. Because of the STAR, MacLaren Hill was able to renovate 84 decks and remove 32 defective canopies. Alttiough thete aze 122 units in the condominium portion of the development, 38 did not need any work because the deck designs were sound. The new upper level decks were reinforced with two steel supports and the wood was replaced with sealed cedar. Metal railing runs on top of cedar sides of the deck. The decks' dimensions aze 6 feet by 9 feet. Half of the ground levei decks were also made of cedar. In an effort to reduce maintenance and deterioration these were all replaced with concrete patios. Other improvements that were done in concert with the decks included the creation of a circulation system in the common areas of the condominium in order to reduce the accumulation of moisture and new external siding installed with vapor barriers. One depariure from the contract was the fact that all the canopies were not replaced. The decision was left up to the resident and some declined the option because of the additional assessment. As a result of this project the condominium association was able to eliminate a safety hazard. Moreover it was able to improve the appearance of the community. Peopie aze now able to get outdoors conveniently and this has helped to build community. The association is currently scheduled to paint and landscape the buildings. This kas helped stabilize a residential area and stave off the units from being tumed into rental properties. This project serves the residents of MacLazen Hills and the surrounding residents. There are approximateIy 140 members of the condominium association. Contract Compliance: The properties that were served were 13�2, 1390, 1392 Cazling Dr. and 1335-1413 Spencer Road. This agrees with properties discussed in the contract. The STAR contract was signed on October 16, 1996. Construckon began in October 1996 and ended in April 1997. The work was completed within the progress schedule discussed in the contract. The designated comple6on date was 8/97. There were a few hindrances according to the project manager, Tom Spivey. First the conlractor had health issues which kept him from worlang. Second the winter weather slowed the process down. Third, there was a work stoppage associated with a misunderstauding about workers' wages and benefits. In ttris case some of the workers who received STAR funds were not being compensated for benefits that they were guaranteed under the 122 � � � � � � � � � , � � ,� � � � � � � !� . � STAR. To compensate, the contractor increased the wages for workers without benefits. The workers with benefits compiained that the others were being paid more, and until it was corrected they stopped worldng. This stopped work for a time but Mr. Spivey did not say how long. The STAR funds were used to renovate 84 wooden decks and concrete patios as well as replace a few wooden canopy overhangs. The money went to cupentry, materials, and sealant. The work was conducted through a contractor and did not involve volunteer labor. Comments: The process was slowed down because of labor requirements and the speed at which bids were offered. Mr. Spivey described the process as long. Restored decks at MacLaren Hill Condominiums 123 � 96.128 Minnesota Boat Club Restoration Minnesota Boat Club Grant Amount: $55,000 � Descripfion: The project consists of Phase 1 renovation of the Minnesota Boat Club (MBC), home of the oldest athleric insritution in Minnesota, A Saint Paul landmark on the National Historic Registry. Improvements include renovation of extema2 parios and chinuieys, replacement of fhe second level great room flooring, restoration of the extemal stucco and restoration of windows. The home of the Minnesota Boat Club on Raspberry Island has deteriorated due to floods and vandalism. The restorarion is partially completed. The patios and clunmeys have been refurbished. The repairing and replacing of windows, new stucco, and restoration of the floor sfill remain to be done. Other improvements haue been implemented at the same time however they are not part of the STAR renovation. They include landscaping and removal of heavy debris accumulation after this winter. According to Doug Olson, the project manager, these impmvements aze maldng the club look better. Moreover these efforts aze protecting an historic site. This project is benefiting the community at large because local and regional schools take advantage of the lraining programs that the boat club offers. High school students from Central and Forest Lake aze well represented among the membership as are college students from St. Thomas and Cazleton. The membership of the club fluctuates from 70 to 125. The number of new people involved in 1997 jumped by 40. In prior years it had only risen by 20 per yeaz. The age composition of the club breaks down as follows: 25% high school students, 40% college students, 25% professionals, and 10% over 50 years of age. Contract Complianee: The STAR funds are specifically serving the club house site at 1 South Wabasha on Raspberry Island This agrees with the terms of the contract. Generally the Minnesota Boat Club serves the East Metro. The STAR contract was signed on January 20, 1997. Work began on the patios and chimueys in early spring after the spring flood debris was cleared. This work was completed by eazly snmmer. The bids on the windows were just received and wi12 be initiated and completed by the end of fall. Olson eapected that the floor would be replaced over the winter of 1998. The primary delays on this project have been the flood and delays getting matches for the funds. The STAR funds have been used for Yhe patios and clunuieys. It cost about $ Z 0,000. ABer receiving recent bids it is expected that windows wili wst in the mid-$30,000 range. Olson was unsure about the costs associated with the new floor and stucco. Since the flood waters earlier in 1997 subsided the main delay has been the difficulty of getting matching funds. � 124 � � � � � � � �" � � � � � � � � � � ��-ia� Participation of the members was part of this project. The azchitecturai design was donated. Additionaliy boat bay doors and windows were built by other members. Comments: Olson indicated that he thought there was too much paperwork. He said it was difficult to get the targeted vendors to come out and give a bid on the work. The Minnesota Boat Club 125 � 96.133 Frogtown Entrepreneur Center Frogtown Entrepreneur Center, LLC Description: Loan Amount: $ 86,500 Seed Capital: $154,500 As part of collaborarive effort to foster economic development activifies in the University and Dale area, Neighborhood Development Center, Inc. (NDC) and Frogtown Action Alliance (FAA) through Frogtown Entrepreneur Center, LLC witl acquire and renovate the former Dakota Microfilm building located at 501 North Dale Street into the Frogtown Entrepreneur Center which will be an incubator facility for neighborhood/Saint Paul entrepreneurs from which to operate their businesses. In November, 1997, the project was completed and began leasing to tenants. There aze currently 11 tenants in the building including Inner City Rehab; Moua International Communications; Multi- Pure; Newell Abatement Service; Queenie's Bus Tours; Steven Insurance; Security Financial Consultants, Inc.; Robert McClain Photography; the Siebert Group; and Non-Profit Consulting Associates. Only two spaces remain vacant. The project has taken a vacant and blighted building and renovated it into an attracfive, productive community asset. As a result of the proj ect, eleven neighborhood businesses aze growing and serving the Frogtown community. Contract Compliance: The site that was originally designated in the contract is the site at which the project is being implemented. It will serve all of Saint Paul but specifically benefit the azea from Rice to Lexington and the railroad to University Avenue. The STAR contract was entered into December 30, 1996. Renovation began in May of 1997 and was completed in November 1997, when the project opened for business. The STAR funds were used for acquisition and renewal of the building at 501 N. Dale Street. Most of the pmject was implemented through contracted labor, however, there was some sweat equity as part of the match. 126 � � � � � � � � � � � � 96.141 Phalen Corridor: Williams Hill The City of Saint Paul Port Authority Description: a�-ca� Grant Amouut: $250,000 The objecrive of this project is to clean up blighted and poliuted land to create living wage jobs. This is a continuation of project #95.158. The following is a copy of the report from that interview. This project , which will occupy the Williams Hill secfion of Saint Paul, has not been implemented. This is a business park development. It will encompass five parcels on a total site area of 25 acres which can be developed. The pazk is zoned I-1 usage, so it will be targeted toward light manufacturing and industry. Currently the land is going through remediation. After that the land will be reshaped to accommodate the planned activity. Later the urilities and roads will be added. "The STAR funding is crirical," accozding to project manager, John Young. There is a nartow margin for error in projects such as this that have multiple funding sources and agencies. One of biggest challenges is getting the money to do exactly what the agency awazding the funds requires according to Mr. Young. The STAR helps agencies like the Saint Paul Port Authority that are chazged with spnrring development in a time of federal fiscal austerity. Because of the requirements that the Port Authority places on the businesses that wiil occupy the pazk, there will be a recognizable positive effect. For instance, the Port Authority requires 60% ofthe project tenants' employees to be Saint Paul residents. Another guarantor of the benefit this will have to the community is that the Port Authority requires that each company in the pazk employ one worker per 1,000 squaze feet of enclosed space. This acts in combination with the fact that the Port also mandates that businesses develop a minimum of 30% of their land with a structure(s). As a result a minimum of 325 employees will work in the business pazk when it is fully developed. This is strengthened by the fact that all the jobs must pay a living wage. The minimum wage under this standazd is $8 per hour. Tbe project will directly serve approximately 5 light manufacturers and their employees. Factors � such as the locally made content of the inputs and the markets of the final products will deternvne who is being served. � Contract Compliance: � The project is still set to fall within the boundaries established in the contract. The service area is Williams Hill. It is bounded by I-35E on the west, University Avenue on the south, and the Burlington Northern rail line tracks on the north and east. � � � � The coniract for this project was entered into March 1, 1996. The project began in November of 1996. Remediation of the soil is neazly completed at this point. The mads and utility services aze expected to be finished by September 1998. 127 �l No STAR funds have been used on this project because no capital impmvements have been made. � First remediation must be completed. After a month(9/9'� that process should be complete. This ' necessary step has slowed the completion process. Also funds that are pending for this project from economic development must be received before the STAR funds can be used. If they are not then it will be difficult to use the STAR funds as discussed in the contract. When these critical factors � aze addressed Mr. Young believes the total project should be finished and ready for business development by September 1998. � 1 � � � � � � I i � � � 12g � � � � � � � � � 96.145 RAP Midway Area Head Start Program Ramsey Action Programs, Inc. Description: �i . � GrantAmount: $100,000 Loan Amount: $100,000 The objective of ttris project was to renovate 6,725 square feet of space in the building located at 450 N. Syndicate. It is being used for the Bigelow Head Start Program and includes an outdoor play azea currently under construction. Tlris project is 100% completed but not all of the features indicated in the contract will be realized as a result of STAR funds. The 6,725 square feet of interior space at 450 North Syndicate designated for the Head Start Progam have been renovated, including four classrooms, two offices for the center manager and social workers, a pazent room and ldtchen. Each classroom is brightly colored, with excellent natural light, a utility azea, and mud room space. Each classroom has two toilets and sink. The playground renovafion ($55,000) is funded with community development block grant funds. This Head Start Center complements a wide array of other social services housed at the Bigelow � Building and promotes easy access by clients to other services. The Bigelow location is also beneficial to residents of a nearby lazge rental complex at 1247 St. Anthony, which offers Section 8 housing. Pazents and children do not haue to cross a busy thoroughfare to reach the center. � � � � � � � � The center serves 136 children: 17 children per classroom session. The children attend either the moming or afternoon session. During the first yeaz 62% of the children enrolled aze African American, 32% are Asian, 3% aze Hispanic, and 2% are Caucasian. Contract Compliance: The geographic boundaries for the center aze not absolutely defined, however most attending children live in the Midway area. The contract was signed on February 7, 1997. Conshuction began June 1997 and ended September 16, 1997. In the contract the completion month set forth was 7uly 1997. The STAR budget was used to completely renovate designated space for Head Start in the Bigelow Building. The expenditure covered the gutting of the interior, putting up new walls, replacing the ceiling and the floor, n,nning new plumbing and electricity, and putting in bathrooms for each rooms. Comments: According to Mr. Pickering, using the STAR Program makes it easier to get matching funds and contributes to community revitalization. 129 96.151 Coordinated Housing Investment Program(CffiP) Local Initiatives Support Corporation(LISC) Description: Grant Amount: $200,000 Loan Amount: $300,000 CHIP is designed to stimulate purchase/rehabilitation and refinance/rehabilitation mortgage transaction in selected St. Paul neighborhoods. The objective of this initiative is to implement, in a coordivated, cost-effective faskion, a set of &naacial and non-financial pro�am components that will assist in removing barriers that have traditionally kept private lenders from doing purchase/rehabilitation lending in more economically distressed market azeas. This project has not been implemented. Local Initiatives Support Corporation is the lead agency on tlris project. The project will concentrate on two neighborhoods which e�ibit difficutty getting traditional bank financing yet ha�e pmven rewrds of getting homes rehabilitated. The chosen neighborhoods aze the East Side and the West Side. The East Side is comprised of three groups: Dayton's Bluff Neighborhood Housing Services, East Side Neighborhood Development Company, and North East Neighborhoods Development Corporarion. LISC has determined which financial institutions will partner with them. After going through a competitive selection process First Bank was chosen. Mr. Peacock, the project manager, thought that Twin Cities Federal would be a designated lender for the program despite the fact that they submitted their request to be part of the program late. The project will not limit the type of recipients. In particulaz a11 the participants do not have to be first time home buyers. The project will help with acquisitaon as well as rehabilitarion. The program will offer second mortgages and gap financing. Home values will not be in excess of $100,000. It is not abundantly cleaz exactly how they aze going to increase home ownership. He said there is tto restriction on the housing status of the perspective owner, and there is going to be no special effort placed on tryingto convert formerty rented pmpertiesto flome ownerslup. Cf�P sees itseIf as a better alternative in some situations than is the City's Houses to Homes Program. CHIP only relies on some g�vemment assistance, and it intervenes eazlier in the deterioration process. Although no homes have gone through tlus process, it has given LISC a tool to combat urban decay. The community should also benefit from tFus reinvestment, Tfie seIected neighborhoods should stabilize as they see more resources stay in the area. People's willingness to finance a home with gap finaucing speaks volumes of the confidence that will filter through the community gradually. To enlist real estate agents the West Side community is planning to pay the agent a percentage of the price of rehabilitation rather then just a commission on the sales price. Because implementation has not occurred yet it is not clear, however it appears that the NDCs and the neighborhoods they serve will be benefited by the projects. It is still expected that 35 homes will be served. 130 �. � � �� 1 � � �� q�- la� Contract Compliance: This project will serve the geographical azeas expressed eazlier. The contract for this project was signed on Febniary 7, 1997. The project got underway in June 1997. The financial partners were chosen by mid- 7uly 1997. It is expected that the purchase/rehab will begin in October 1997 and should be completed before ttte end date discussed in the contract of January 1999. The STAR funds will be used for rehabilitation and some acquisirion. The mix of loan and grant will vary from home to home and neighborhood to neighborhood. Homes located in enterprise communities will only get loans because they are getting help from a fund other than the STAR. If the home is outside of one of these azeas it will be eligible for grant and loan funds. The loan will haue a 2% interest rate on it. Comments: Mr. Peacock thinks that worldng with the STAR fund can be onerous. There aze many requirements. He does not believe that it is being administered in a way that it can serve its intended audience--those unable to use private financing. He subscribes to the Urban Initiatives Model as admanistered through the Muuiesota Deparhnent of Trade and Economic Development. The model shows that loan recourse goes to the end borrower. The community paztner (the intermediary agency) is not responsible for paying the monies back to the program. The reason that recowse does not go to the community partner is because the funds are allocated as a grant, and the partner in tum loans the money out. Some administration is allowed, and there are fewer regularions and requirements. 131 � 96157 & 96.158 Salvation Army Community Center The Salvation Army of Saint Paul Description: The objective of this project is to insulate and coat eacterior walls of the e�cisting Salvation Army buildings in addition to building new construction which will create a unified appearance and increase the energy efficiency of the building. The project will also include a new parking azea; landscaping; developing a secure playground; demolishing the condemned Gem Building; demolishing an elcisting house on aa adjacent pmperty and establishing urban pazk. This project is currently being implemented. The portion which was completed was the demolition of an old house on a triangulaz property between tFte Saivation Army and West Seventh St. A temporary pazking azea has been placed on the cleazed lot. As progress is made on the proj ect the space is eacpected to be used as a sma11 pazk, Across Smith, the former Gem Theater is located. Tlus structure which was built in 1911 has been condemned. Since it was acquired by the Salvation Army it has functioned as the site for its social services program. This structure is slated for demolition on August 7, 1997. Up to this point the land has been prepazed for redevelopment. Contamination from old gas tanks has been cleaned up, and an old well for coolittg the theater has been capped. A new 2 floor structure will be set on the basement of the former theater. The new space will house around 10 offices, four class rooms, and a nursery. The second aspect of construction and impmvement will include the rehabilitation of an old gymnasium space into a dining ha11, latchen, and fitness room. With the completion of ttris redevelopment, the Salvariott Army will be able to offer its clients more privacy in the new social services area. It will be able to provide meals to senior citizens and the homeless in a safe and clean environment Tlvs pmject will serve the community by improving the appearance of a gateway into an historic neighborhood. This facility provides services to approximately 500 people a day. Not a11 of them wi11 be using the new space, but indirectly it will positively impact the remainder of the site because it will allow the Salvation Army to provide sufficient space for all activities thus ending the competirion for limited space. DirecUy it will heip about 200 people who use the senior and fiomeless food service daily. Moreover it will help civic groups like the Boy Scouts who will use the new classrooms. It will benefit the social workers, their clients and the cluldren who use the nursery facility. Contract Compliance: The dexnolition, construction, and improvements are being done at the comer of Smith and West Seventh . This location is the same address as was indicated on the contract. This center primarily serves the neighborhood and Saint Paul, but there aze recipients of services from outside the area. He did not have a break down. Loan Amount: $542,336 � � 132 �. � � �8 The contract was entered into February 1, 1997. Implementation of the project began in April of 1997. The construction of the structure and extemal aspects of the project are projected to be completed by November 1997. The interior work in the new building and the gymnasium aze expected by spring of 1998. � Because a general contractor has been hired for this project, there is no plan for neighborhood participation to be a component of the implementafion of this plan. � � � � � � � � � � � � � 133 � � 96163 Ramada Hotel Starbonnd LLC Saint Panl Hotel Loan Amounr: $350,000 � Description: The project included a total of $3,617,143 in total project cost. Starbound is in the process of: paying the back t�es ( of previous owner), paying the remainder of the purchase price, and major renovation to the hotel. The STAR funds were applied to the renovation of the hotel. This project has been unplemented. The properiy at 1870 Hudson Road was renovated. As a result 30 rooms were reopened, the exterior was refurbished, and the parking lot and landscaping were impmved. Moreover the lobby was renovated to make the inn more inviting. Because of this project there now is a place on the east side of St. Paul which grovides qualiTy accommodations to the business petson as well as the leisure traveIer. This has benefited the businesses of that area. 3M previously used the convention and meeting space of this facility. As the hotel fell into disrepair 3M curtailed its business association with the facility. Cuirently 3M has resumed this business relationship because the renovation has brought the convention center up to an acceptable level of quality. This project serves the Ramada Inn and its employees. Over 50 new employees have been hired as a result of the renovation and the increased business. City residents aze benefited because a business has been placed back on the tax ro11s. 3M and othet neazby business are served witk an improved bank of accommodations and convenrion facilities. Contract Compliance: The improvements occurred to the property Iisted ia the contract at 1$70 I3udson Road. Because of the nature of the business many if not most of the customers of this Ramada are not from Saint Paul. In light of its location neaz an interstate highway and relationship with the international manufacturer 3M the service area is broad and not prone to definition. The renovation began in the winter of 1996 and was completed by spring of 1997. The STAR Budget was utilized for remodeling the east wing of the hotet. � f�Ci� � � � � � � � � � � � � � � � � � � 96.168 University-Midway Neon Sign Project University United Description: ��-�a� Grant Amount: $80,000 The project consists of providing a matching STAR grant-private loan financing package for installarion of approxixnately 30-40 neon signs for businesses on University Avenue resulting in the creation of a more unified signage appeazance. The Project will complement current facade isnprovements and contribute to a safer environment through increased lighting. This project has not been unplemented. C�urently the project manager, Irene Rodriguez, is promoting the project. She is e�cpecting that some of the participants from the Midway Facade Ixnprovement Project will take part in this also. In fact while discussing facade improvements with first phase grantees she informed the businesses that they might want to postpone sign improvements unfil the Neon Sign Project got underway. Ms. Rodriguez indicated that she believes the project will continue to develop as described in the contract. Since nothing has happened the topic ofpopulation served will not be touched on. The contract was signed Febmary 6,1997. The progress schedule is starting off later than described in the contract. Ms. Rodriguez believes it can be completed within the designated completion date ofFebruary 1999. Update as of January 21, 1998: iJDIITED will launch the Neon Sign Project with a week long community artist e�ibit at Wiikins Dodge the week of February 3-8, 1998. Neon signage from local artists and business will be displayed to spur interest. Various community art projects will also be highlighted, to spur community involvement. T-shirts with the City's STAR Program logo will be given to the public from drawings. I7AIITED will request the presence of Mayor Coleman and the STAR Board. The event will be open to the public and a press release will precede the event. It is estimated that approximately 30 grants will be awazded. 135 96.169 West 7th Commercial Revitalization West End Business & Professional Association Description: Grant Amount: $ 50,000 Loan Amount: $150,000 This revitalizarion effort will enhance the appearauce of commereial sites along West Seventh through store front renovations and other physicaI improvements. This project is beginning to be implemented as of September 1997. The focus of the project is a revitalization of commercial sites along West 7th Street. The improvements will be accomplished through store front renovations. Because the West 7th Business Association has imposed maximum limits on loans and grants of $2Q000 and $2,000 respectively, a minimum of eight business can be served by this project. At this point one business has completed the renovation of a store front. The business is Vildng Construction at 244 West 7th Street. Other businesses on West 7th Street have been approved by the business association to receive funding through tlus revitalization effort but none have begun the improvement pmcess. Because of this pmject the West 7th Business Association fias gained exposure and credibility among the businesses in the community. In fact this revitalization project has increased membership in the association. Additionally this project helps the business association raise funds from other sources. According to James Smith, the project manager, it would be premature to comment on the impact that the project has had on the lazger neighborhood because little has been done to this date. First this project serves the businesses on West 7th Street. The businesses which can be assisted do not have to be members of the business association, and in fact some of approved parties aze not. After the funds were awazded to the West 7th Business Associarion a publicity event was held at a West 7th Street restauraut. Roger Amimdson, a project coordinator and IocaI banker, stated that around 60 business ocvners were in attendance. Flyers have atso been distributed door- to-door to local businesses. This has created a core of seriously interested potential participants. This project will ultimately serve the customers and residents of the azea, but at this eazIy stage it is nof possible to say who that will be. Contract Compliance: The azea served by the project is limited to the properties directly on West 7th Street. Smith said that half the funds are intended to go to businesses between Victoria and the Mississippi River. The other half will go to the area of West 7th between Kellogg and Victoria. The STAR contract was signed in January of 1997. Promotion of the project and the fust facade nnprovement began in March 1997. It is expected that the project will be completed by the anticipated and contracted elcpiration date of January 1999. The project bas gotten a slower start than expected because the contract took a few months Ionger to sign, and businesses seem unable 136 �. � � � � �� .� or at least unwilling to match the funds provided from the STAR for the projects. Another major conhibutor to the slower than expected progress has been the fact that the West 7th Business Associarion has not been able to raise ffie funds to hire or at least assign labor to the task of organizing this project. As of early September 1997 no STAR funds had been disbursed. Thus directly the STAR has not been used for any physical improvements to date. In the case of Viking which has completed its unprovements and has been approved for funding the appropriate reimbursement paper work has not been received. � It is e�cpected that all the work necessary for the implementarion of this improvement project will be contracted labor. In the case of Vildng Construction this may not hold because they actually executed the improvements with their staff. � � � � � � � � � � � � Comments: Mr. Smith stated that the paperwork was almost overwhelming. The presentation of the contract to the West 7th Business Association took about six to eight weeks. Mr. Amundson thought that was too long a delay. Beyond complications and delays, both Smith and Amundson concurred that misinformarion was given to them about the STAR and its relationship to their project. This included whether fees would be deducted from their STAR funds. 137 l�' � 96.170 Lyngblomsten-West 7th Senior Housing � � The contract has not been signed, and nothing has been implemented. The project has requested � an additional subsidy from PED. It was being reviewed during the middle part of August 199 7. A hold has been placed on the STAR aspect oFthis project unril the review is completed. Allen Cazlson, the account officer, said that a decision on the subsidy should be issued within the next � couple of weeks. He believes that the decision will be affirmative for at least some subsidy. The contract should be signed within 60 days following a decision to subsidize. � �j � � � l� � � � � � � � � �. � � A. Introduetion Cultural STAR Report a�- } a� � This report examines the C�ltural STAR Program for cycles 1995 and 1996. It considers the program's strengths and weal�esses by looking at the individual projects and programs that � consritute the Cultural STAR Program as well as overall andicators of the program's performance. The report focuses on ttte level of success that the progrun has had when meeting the desired outcomes outlined in the guidelines. The examination discusses circumstances and � strategies which have helped the program to meet its expected outcomes and idenfifies areas for improvement. The report emphasizes the opportunities and threats which aze present to the Cultural STAR Program. It proposes options and recommendarions for enhancing the program � by taking into account the program participants, the e�ectations of the City of Saint Paul and its staff, and most of all the needs of Saint Paul residents, the cultural community and businesses. � ;� � � � Inforxnation for this report was acquired through interviews and reseazch of program files and documents. The interviews were conducted with neighborhood project managers, Deparhnent of Plannuig and Economic Development (PED) account officers, neighborhood residents, and the Neighborhood STAR Program coordinators. The neighborhood project managers, who aze generally the best informed source of information on their particulaz project or program, gave updated information on their accounts and also identified concerns that they have with the Neighborhood STAR Program. This report was prepared by Fran Burns, a graduate student of the Humphrey Institute of the University of Minnesota. It is an independent report. The options and recommendations presented are those identified by the author and are based on his interpretarion of the information gathered thtough the interviews_ B. Objectives of the Program � The folowing objectives are listed in the program guidelines adopted by the City Council: � 1. 2. 3. � 4. S 6. � 7. � � � Provide cultural and economic benefit to Saint Paul Leverage the sales tax dollars with private resources Create and/or retain jobs Enhance and support the cultural dishict as a visitor attraction Develop relarionships between the cultural district and the neighborhoods Stimulate vitality of downtown Support and enhance Civic Center improvement 139 STATUS OF'THE 1995 STATUS OF THE 1996 CULTURAL STAR ACCOUNTS CULTURAL STAR ACCOUNTS Status of Project Acwwrt Disbursements for 1995 Culturei STAR 6 (66.7%) 1 (11.1%) 2 (222%) �fUlly onone �partially Project Completion with Anticipated Period ' for 1995 CulWral STAR 5 (62.5%) 3 (37.5%) Status of Projec[ Account Disbursements for 1996 Cultural STAR 3 (33.3%) 6 (66.7%) �fully o none Project Completion within the Anticipated Time for 1996 Cuitural STAR 4 (57.1%) 1 (14.3%) 2 �Z8.6%� � .yes o no ect95. �Snot�ndu usenocontrac[wasexepll Prqeet Completion wkhin the Contraded Period � far 7995 CulWral STAR 8 (10Q.Q%) ■yes Project Completion within the Contracted Period for 1996 Cultural STAR 6 (55.7%) 1 (14.3°/a) jxt 95.W9 is not fntluaetl befause no mnt2awds e[eW1e0. All yp�¢�[ �pnhaqs are achve Exhibits 2.1 140 �. � �. � � � � � � � � � � � � � � � Improvements Funded Through the Cultural STAR Program Q� �g Interviews with the 18 Cultural STAR project pazticipants indicate that revitalizarion is occurting in the cultural district of downtown Saint Paul in part because of the Cultural STAR Progam. As of October 1997 eight of the projects have been compieted. Four of the projects were cultural orgauizarion facility impmvements; two were streetscape/pazk projects; and two were commercial rehabilitation projects. The C�lt�u�al STAR funds have been allocated with funds going to each development types. The lazgest amount ofmoney goes to cultural organizations. They received over 50% of the funds in both 1995 and 1996. The other two development types received the balance. The allocarions for these types fluctuated between 1995 and 1996 . D. Pr�ress The Cultural STAR projects have up to two yeazs to complete projects while still under contract. The fust Cultural STAR contract for 1995 or 1996 was signed during February 1996. Thus, the first contract will expire in February 1998. When considering the date of contract expiration, the progress of the C�Itural STAR projects is excellent. In fact it is projected that all except one project from cycles 1995 and 1996 will be completed. This projected completion rate is not surprising if one considers that 8 projects have akeady been completed. The completion rates are high because of three critical reasons. First, the cultural organizations generally plan the processes of design and implementation extensively. Second, the Cultural STAR grants are generally small and do not require massive coordination. Third, the Cultural STAR projects have two years to be completed while the Neighborhood Smali Grants contracts are generally for a'one year period. As shown in e�thibits 2.1, the anricipated completion rates according to the rimelines defined in the contract are not neazly as impressive. The two major reasons this has occurred are because the initial groups to apply for Cultural STAR funds underestimated their comple6on schedules, and also because a few of the groups had organizational problems during the first part of the program. Overall the progress of Culttzral STAR projects has been impressive, and it appears to be able to maintain that level of accomplishment. E. Com�liance The majority of the Cultural STAR projects for 1995 and 1996 have remained in compliance with the guidelines of the program and the requirements of their project contract descripfions. All of the completed projects have been executed within the scope of the guidelines. Of the incomplete pmjects, eight aze expected to be in full compliance. The rema;ning two projects are not or at least may not be in full compliance with the guidelines or contract. The reason "may" is used in the last sentence is because one of the projects that would not comply has not been completed to the extent that non-compliance can be assumed. Two of the projects appeaz to have problems complying with the guidelines. The first project with such a situation is the Science Museum of Minnesota. The initial disbursement of $300,000 went to the Saint Paul Foundation to pay off an indebtedness that the museum had incurred to acquire a portion of the land on which the museutn 141 � will be located. Money in the Cultural STAR is expressly designated for capital improvements and not for the acquisition of property. The second such possible non-compliance issue is with the Museum on Wheels (96.552). Cuttently it is uncertain whether North East Neighborhoods Development Corporation, which is administering the project, will have site control over the building that they intend to improve. The building, 1545 Maryland, was sold recently and the new owner had not yet entered info a Iease witfi the tenant, North East Neighborhoods Development Cotporation. Under the C�ltural STAR guidelines it is required that improvements ha�e a five year life. Without a five-year lease, future site control is uncertain and in turn the life of the improvements. Despite these exceptions the majority of the Culhu�al STAR recipients have or aze eacpected to be able to complete projects in compliance with the guidelines and contract description. F. Economic Impacts For many of the projects it is difficult to measure the economic impacts. Ten of the projects do not invotve a direct monetary exchange associated with the consumption of the unpruvement. An example is the lighting in Rice Park. The consumer of this amenity does not pay at the point of consumption. Other projects will involve a monetary transaction, but they have not been completed. An example of trris is the Minnesota Centennial Showboat Renovafion. However there are two projects which have measurable economic activity and aze completed. They ate the Saint Paul Chamber Orchestore and the Saint Paul Friends of the Library Used Book Store. These stores aze new, so they are still building a customer base. This may mean that sales are not at their peak. Currently the average monthty sales for the used book store aze $2,000. It should be rememberecl that although the dollar amount of sales may be relatively low for the book store that the volume of items sold is high because the books sell for an a�erage of $1.25 per copy. In the azea of job creation there have been 3 full-time and 7 part-time jobs that have been made possible in part as a result of the 1995 and 1996 Culhu�al STAR Program. Another indicator of economic impact, properiy tases, is not applicable since the pmjects aze administered by non-profits and aze thus not subject to property ta�ces. Overall, economic activity has increased in the azea lmown as the cultlu�al dis�ict, but that can not be linked to any one factor. Variables such as the type of cultural event, the frequency of events, safety, and accessibility partly detenuine the economic success ofthe azea orproject. Because ofthe lack ofnecessary variable data it is impossible to specifically ascertain the impact of the Cultural STAR. With this said it is still possible to determine that the Cultural STAR is accomplishing meaningful improvements in the cultural district that would not have othenvise been implemented. This was made clear through the interviews with the Cultural STAR project managers who said this program has been vital to complementing the new civic center facility. G. Matches The Culrival STAR Program has been successful in securing the required match from each of the participating projects. As seen in e�ibit 2.2, the entire documented match for CulYurat STAR 142 �. � � i � � � � � � � � � � � � Exhibit 2.2 � Exhibit 2.3 � � � �$ �, Matching and STAR Funding � for 1995 and 1896 Culturet STAR (46.4%) 143 Project Managers' View of the Cultural STAR for 1995 Cultural S7AR Recipients Project Managers' View of the Cultural STAR for 1996 Cultural STAR Recipients Exhibits 2.4 .: � � �� - � a� cycles 1995 and 1996 has been 53.6% of the total dollar expenditures necessary for the projects. This means that for every dollaz of Cultural STAR money being provided to projects, $1.15 in outside match is being raised. In fact this reading of documented match is highly conservative as the current reporting system does not consider the magnitude of the total match that will be provided in the case of the new Science Museum of Miwnesota or the Minnesota Museum of Art. These two projects could put the match over $90 million. Sweat equiTy did not play a significant role as match to these projects. Because of the highly organized and public nature of the improvements in the Cultural STAR, sweat equity match was not appropriate as it was in the Neighborhood STAR Prograui. H. Perception of the Cultural STAR Program The project managers of the Cultural STAR Program expressed an overwhelmingly positive view � about the Cultural STAR. As noted in exlubits 2.3, over three-quarters of the 1995 Cultural STAR project managers had a positive view of the program while two-thirds were positive in 1996. One additional manager was not fully satisfied with the Cultural STAR Program in 1996 � than in 1995, but due to the small number of participants it would be difficult to identify this as a trend: � � � � � � � � � � Cultural STAR project manager of the History Center Exterior Signage, Shana Crosson, said that, "The Minnesota Historical Society was thrilled to receive this grant. They would apply again." Another Cultural project manager from Minuesota Landmazks Cultural Corridor Streetscape Plan, Amy Walgrave, said that, "It was nice being part of a progrun with a short response time. The STAR staff has been great." She also said that, "It (the Cultural STAR) enabled them to do things that they would not otherwise be able to do." Beyond the project manager's positive attitude towards the Culh�ral STAR Program, they also shared an attitude that it is important for the City of Saint Paul to take a real and active role in sustaining the cultutal and artistic life of the community. The C�ltutai STAR project managers see the program as an important step for the City of Saint Paul to demonstrate its support for the culturai community, and that it must maintain and "grow" this commitment. I. Issues Raised by the Cultural Proiect Mana$ers There were no central issues or concerns that repeatedly came to light during the interoiews with the Cultural STAR fund recipients. This is not to say that there were no issues, but there were no pattems of concerns that emerged. The concerns were diverse and particulu to the workings of the individual Cultural STAR proj ects. One issue that was mentioned more than once was that PED charged Cultural fund recipients a fee for the deparlments's admnustration of the award . However this pracfice no longer e�sts and consequently is not a persisting issue. Another concem mentioned by two project managers was the extensive amount of paperwork that the Cultiu�al STAR required. The reason that this concem was cited stenuued from the Little Davis-Bacon reporting requirements. This regulation pertains to the use of all city funds. For the two project managers that expressed this concern, one of the projects had not yet started, so the project manager was expecting that it 145 � would be an issue. Other concems that were cited were 1)difficulty getting the City to issue a pemut for a project, 2) not allowing STAR funds for mazketing, and 3) not allowing reimbursements for administrative eapenses. Overall the concerns cited by each project manager were specific to their circumstances and did not highlight any major deficiency with the Cultural STAR Program. J. Overall Program Issues and Recommeadations The issues and recommendations presented aze those identified by the author and are based only on his interpretation of the information gathered through the interviews. 1. Short-Term Issues a How can the Cnitural STAR Program encourage use of the loan funds? 25% of the funds from the Cultural STAR are to be loaned out. The prograw has identified a need to fund projects that support the cultural district such as restaurants and pulang ramps. As the diversity of the STAR applicants and recipients increases, tlus affords the prograzu new opporhxnities to allocate loans. How could that be accomplished? b. How can the Cultural STAR be more snpportive of multi-cnitural projects? The progam has identified multi-cultural pmjects as being critically important to fostering the revitalization of Saint Paul. Many of the newly arrived immigrant groups to Saint Paui have a tendency to settle in close proximity to others of the same ethnic background. The geographic distributaion of the many cultures of Saint Paul may be a key ingredient to more effectively supporting multi-cultural projects. What can be done to create an environment which will nurture multi-cultural projects? 2. Longer-Term Issnes a. How can the Cultural STAR bolster the arts and culture thronghout Saint Paul? Cultural activity does not onIy happen downtown. The neighborhoods have their own cultural venues, events, and opportunities. How can the program effectively blend its support for the "higher" cultural acrivities of downtown with the more "populaz" cultural opportwriries offered in the neighborhoods? b. How can the Cultural STAR awaken interest in history, the arts, and cultare among Saint Paul's youth? They aze the future stewards of the community. This generation wiff be facing the same decision that the past few generations have-Do I stay in the inner city or do I exit? It is unportant that the Cultural STAR take a leading and yet supportive mle to instill pride in the children about who they aze and about the community in which they live. How can the Cultural STAR Pmgram best serve our futiu adult residents-the children? f�'. �. � � 3. �.i � � � � � IJ � ,� � � � � � Recommendations �� a. In order to use the targeted 25% of Cultural STAR funds as loans the program could require that supporting services like pazldng ramps and restaurants that receive STAR funding withiu the cultural district get a certain portion of the awazd in the form of a loan. This could help to get loan funds out by targeting recipients who would be the most capable of repaying the debt and are also in the area with the highest concentration of cultural opportunities. b. As stated in the 1996 guidelines in the list of "projects more likely to be funded" aze "proposals supporting the multi-cultural dimensions of the community". This presents a cross purpose to the program because the cultural funds are mostly directed toward down town whereas most of the ethnic communiries in Saint Paul aze located out of the cultural comdor. In a effort to support this proposal it might be beneficial to open an inereasing percentage of the money to use in the neighborhoods. With more money available to the neighborhoods, multi-cultural projects may have a better chance at getting Cultural STAR funding. a Many of the culhxral organizations in Saint Paul are hauing trouble with insufficient funding. The usual sources like the National Endowment for the Arts are often times lowering the amount they aze giving in grants, awazds, and donations. As a result the Minnesota State Legislature has amended the Cultural STAR Program to ailow it to fund operating expenses as well as capital expenses for cultural projects . Currently the challenge will be to detennine how the funds will be allocated in light of this expansion of allowable expenses. d. Cu2ttue comes in many farms and that is especialIy true in Saint Paul, and it does not only happen in the cultural corridor. For five years from the inception of the program the cultural corridor has been designated to receive a minimum of 75% of the STAR Program's cultural funding. This has been one of many effective strategies for revitalizing downtown Saint Paul. However after five years this allocarion will be revisited. At that point the City Council will consider if the geographically designated allocations will be continued or revised in some way. The Council should consider modifying the minimum aliocation for the cultural corridor so that cultural groups in the neighborhoods can compete for funding more successfully with the well established cultural organizarions in the comdor. e. The Cultural STAR Program can help muture a sense of cultural, historic, and overall civic pride among Saint Paul by funding cultural endeavors that promote an understanding and awazeness of the history and culture of Saint Paul. The 7ackson Street Roundhouse has developed a grade specific curriculum for children visiting the facility. This approach helps broaden and reinforce children's understanding of the unportance of Saint Paul as a transportarion hub and economic center. When awazding Culhxral STAR funds the board and 147 � City Council should ensure that this Saint Paul focus is demonstrably part of each of the projects that will get Culriu�al STAR funding. K Conclusion In summary, the C�Itural STAR Program has been effective in meeting the objectives as stated the prograui guidelines. The majority of the funds have been used for capital nnprovements to "front of stage services" wfiich impact visitors. The Cultural STAR funds are stimulating downtown vitality in combination with other private and public efForts. T'he cultural corridor projects have generally been successful linldng into Saint Paul neighborhoods. This is especially witnessed through the outreach that many of the cultural organizations have with the Saint Paul School District. Although it is difficult to verify absolutely, it seems that the Cultural STAR Progratn is making efforts to stimulate economic activity and create /retain jobs. It appears that with fixtute cycles it will be even more successful in creating economic vitality by funding projects which cater to the needs of the visitors, such as restaurants. The program is new, but it has great opportunities for meeting its goals in Saint Paul because the cultural wmmunity is dynamic and willing to meet the needs of Saint Paul residents. ,; � Y � � � � � � � � � � � � � � � ��-ca� 1995 & 1996 Cultural STAR 95.509 Skyway Lightutg Bnilding Owners & Managers Association Description: Grant Amount: $136,600 The objective of this project has been to add lights to all of the skyway bridges in downtown St. Paul. Decorative light fixtures will be located along the top of both sides of each skyway bridge, specifically at the intersecrion of the vertical supports and the top horizontal beam. These aze permanent lights to be lit every night. This project has not been implemented as of September 1997. William Buth, President of the Building Owners and Managers Association and project manager of the Skyway Lighting project, is negotiating with Saint Paul's Department of License, Inspections, and Environmental Protections on the design of the light fixtures. Mr. Buth said that he believes that agreement has been made on the design, but the cost will be more than originally eapected. In order to continue, the Association will haue to commit more money to the project. Mr. Buth believes that commitment will be made before the end of the yeaz. Mr. Buth did not comment on when he thought the project would be completed, but he did say the permitting process and the increased cost of the project have slowed down progress toward implementation. The objective of the project is to add life to downtown Saint Paul. It will do this by visually connecting the cultural institutions-and other building in Saint Paul with aesthetically attracrive exterior lighting on the skyways. 149 � � 95.510 Library Facade Lighting James J. Hill Reverence Library Grant Amount: $ 15,000 � Description; The objective of this project was to install light fixtures to illuminate the facade of the St. Paul Public Library and the James 7. Hill Reference Library buildings and to increase the general light level in the azea. This project has been implemented. Ten light fuctures have been installed on the front lawn of the Saint Paul Public Library and the James J. Hill Reference Library. Because of the lighting project the library can be seen more easily at night. The Italian Renaissance building assumes a more prominent posirion downtown. According to Brian Braden, the project manager, the accent lighting makes the buildings more prominent in the evening and has ixnproved the general feeling of safety in the azea The Saint Paul Police Department could not verify that Rice Pazk had experienced a change in the number of crimes coxnxnitted in its boundaries since the lighting pmject. This is the case because they keep records on lazger ttacts than the park occupies. The served popularion consists of visitors and residents that go to the downtown area azound the u�aiu library. It benefits the patrons and visitors of the Minnesota Club, the Saint Pau1 Civic Center, the Ordway, the Landmark CenYer, and the Saint Paul Hotel. Contract Compliance: The popularity and cultural significance of this area ensutes that the project services a wider audience than Saint Paul. Visitors come from all sections of Minnesota as well as the rest of the five state region. The STAR contract was signed on Mazch 1, 1996. The installation of lights began in May of 1996 and ended June of 1996. The STAR funds were used for the purchase and installation of the lights. � 150 a�-�a� 95.511 Rice Park Improvements James J. Hill Reference Library Description: Grant Amount: $37,500 The objective of the project was to increase the lighting levels in Rice Pazk by installing permanent light fixlures in the trees. Receptacles were installed high in the branches of the trees to accommodate the Capital City Lights program. The eacisting temporary cabling system was removed and permanent conduit was installed in the ground and up the tree tnmks. In order to complete the project, the electrical infrastructure in the park was also updated. The population served includes individuals who attend events in Rice Pazk, pass through Rice Pazk while patrouiznig or attending an event at a local orgaz�ization, ar visitors and residents on their way to the downtown district. Contract Compliance: The popularity and cultural significance of this area ensures that the project services a wider audience than Saint Paul. Visitors come from a11 seclions of Minnesota as well as the rest of the five state region. The STAR contract was entered into May 1, 1996. The improvements began in July of 1996 and ended September of 1996. The STAR funds were used in Rice Pazk to upgrade the electricity, wire the trees, and install light fixtures. Volunteerlaborwas used on a portion of this project to place 50 extension cords in the trees of the park. 151 95.516 Minnesota Clnb Hattdicapped Entrance The Minnesota Clnb Description: GrantAmount: $10,000 Loan Amonnt: $39,000 The obj ective of this project was to modify the existing Waskungton Street enirance by removing the stairs and installing a handicapped lift in the foyer. This project has been implemented. A handicapped accessible entrance has been installed at the southem end of the Minnesota Club located at 317 Washington Street. In order to install the entrance the landing was lowered to the levei of the outside sidewalk. Previously , a wide staircase ran up to the fust landing at this entrance. As a result of this proj ect this staircase was divided and an elevator lift was installed. When entering the building from the handicapped entrance there aze two automaTic doors at each end of the lift, upper and lower. The eaterior door is equipped with a camera in order to confirni the identity of the visitor. Entry through the outside door is activated by somebody at the front desk. There are complementary handicapped features inside of the club, The upper levels are served by an elevator. The ladies' bathroom is designed for handicapped access and the men's is currently being retrofitted Because ofthis project the Minnesota Club is able to serve the community more fiilly. The enhanced access to the building works as an asset to the club. On a broader scale this project benefits the lazger community because it offers visitors and patrons to the cultural corridor a gathering and meeting facility that is easily accessible despite the physical conditions of the individuals Increased use of the facility because of the improved handicapped access has not been moaitored. Additionally there is no record of the number of times the lift is used because there is no automatic counting mechanism on the lift. Bill Redding, the project manager, indicated that the lift is used. Its use is lunited to designated handicapped individuats. The lifi is never used for freight. The lack of monitoring does not meet the requirements outlined in the evaluation section of the application. Contract Compliance: The events held at the club aze diverse as aze the visitors. They are not from any one particulaz place. Most of the patrons are from Minnesota The contract was entered into May 1,1996. Construction began Match 1996 and was completed in October 1996. According to Mr. Redding the pmject took longer than the described six months because the wheel chair lift took longer to order than e�cpected. The overall maximum deadline for the project was May l, 1998. Everything was completed well before that point. The STAR funds were exclusively and totally used on the creation of the handicapped access for the building. The total cost of the project was in excess of $100,000. 152 1� , � Mr. Redding said the STAR money was critical in getting the project accomplished promptly. He also said that getting the funds was difficult. The club had to show that its facilities were open to the pubiic. The City Council wanted this assurance because public money was going to fund the project. The project was not advertised on the building as being part of the STAR Program. However the members did know because it was menfioned in the club newsletter. Mr. Redding quipped that the process set forth in guidelines is straight forward. You just have to make sure you fit before you apply. 153 � 95.518 Minnesota Museum of American Art Expansion and Renovation Minnesota Museum of American Art Description: � GrantAmount: $100,000 � The objective of this project is to renovate approximately 15,000 squaze feet on the 2nd and Sth floors of Landmazk Center for the Museum's education deparhnent, new administrarive offices and gallery expansion. Impmvements will also include new lighting, HVAC, painting, carpeting, walls, and security system. A new Museum visitor informarion/education center will be built. Although implementation of the project was revised from the original anticipated schedule, Doug Nathan, the Museum's development director, said that the project will include all improvements described in the contract. The second floor will be renovated to house more gallery space, and the fifth floor will be transformed to accommodate the museum's administrative offices and education deparlment. As a result of this project the galleries will eacpand by 30% and a new information and visitor center will be added. Nathan indicated that the amount of space that will be renovated for the administrative offices on the fifth floor is not accurate in the contract. He said it is 1,500 square feet and not 15,000 square feet. After selling the Jemne Building the museum had to place their permanent collection in storage. With the additional space the museum will not have to completely close its operation in order to remove and replace an eachibit. This in turn will directly benefit the patrons. The space will be more open and user friendly. This cultivai site serves azound 75,000 people per year. Of this number 8,000 are chiIdren from the Saint Paul School District. The School Board and the Minnesota Museum of American Art have worked together to create a cultural curriculum that the museum can complement with its collection. According to Darcy Berus, associate director of development for the museum, the Minnesota Museum of American Art is the only art museum in Saint Paul. Because of this status the museum has a strong position serving the City of Saint Paul. Contract Compliance: The STAR contract was entered into May 1996. It is eacpected that implementation of the project will begin October 1997 and end in February 1998. Under these expectations the project will be completed before the contract eapires but after the anricipated date of complerion which was December 1997. To date, none ofthe STAR funds have been disbursed. Nathan explained that the project has been slowed down because of the size of the renovation project. He said total renovafion will cost around $600,000. One significant barrier to the implementation of the pmject has been that ffie original cost estimates were low. This pmblem has been compounded by the fact that additional needs that were 154 � � � � � �J � � � � � � � � ll � � �� a�- �a� not identified initially aze now being considered. Nathan said they aze hying to do it (the project) right, not fast. After reevaluating the increasing costs and limited budget, the museum considered cutting the heating, ventilation, and air conditioning (HVAC) improvements, but later realized this was not a reasonable modification because it would curtail the musewns capacity to attract certain art e�ibits. Many arts organizations which manage exhibits demand that their collecrions be displayed under certain air quality conditions. The building gets excessively dry during the winter. This would violate the conditions set forth by some e�chibit curators. The museum's boazd recognized this as being an unacceptable solurion, so they have determined that the project will be implemented as originally described. Comments: Nathan said the museum was satisfied with the STAR. It was the lead gift from the City. He viewed it as endorsement of the museum's work. Nathan expressed a recogsition of the helpfiilness of the STAR coordinators. He indicated that the museum appreciated the fact that the City bought the Jemne Building from them with the help of STAR funds. He would apply for STAR fixnds again. Nathan described the environment for fund raising as "hazd". It is important far the City to move in and help. City support has always been important, but especially because the demand for cultural services and experiences has been increasing. Nathan sees a role for the STAR program in lending vision for the future of the Cultural Corridor. Currently there is no master plan. He believes that the City is paying lip service to the Arts. IYs a low priority. The City could help thmugh specific things like signage and more general services like assisting the arts organizations in the creation of a long term plan. Nathan thought that a posirive modification to the STAR would be the allowance for eacpenditures for mazketing to be reimbursable. He did not generally think that any STAR funds shouid go toward the day to day administration of projects. 155 � � 95.523 Ordway Patron Service Improvement Ordway Mnsic Theatre GrantAmount: $15,250 � Description: The objective of this project was to install video monitors and an ADA handicapped accessible door to improve service to the patrons. TYris project has been implemented. Ten video monitors have been installed in the lobby and stage area of the Ordway Theater at 345 Washington Sireet. Additionally a handicapped accessible door was added to the main entrance. Because of these service improvements the Ordway is able to provide a more professional and attractive environment for its clients and performers. Mazsha Milgrom, the pmject manager, said it benefits the bottom line. The Otdway is now a more desirable and responsive performiug center than it had been. The video monitors which are commo�lace equipment in halls like this are used as cuing and leatning tools for the perfomiing artist. Previously tlus necessary equipment had to be rented or �-ansported with the performers, Tlus is no longer necessary. Another benefit offered by the monitors is that the performances can be viewed live and remotely from the lobby. With this addition late-comers can watch the show without disturbing the other patrons. Finally when a show is not being transmitted over the monitor, it can be used to advertise future presentations. The haudicapped accessible doorway allows the titeater to more safely and efficiently service patrons who have special physical limitations. It is a key component and complement to the other bandicapped accessible amenities in the theater. The patron service improvements potentially have the ability to enhance every patrons visit to the Ordway Theater. In particulaz it benefits late-comers, handicapped individuals, and the performers, but the opportunity to improve these parties eaperiences in the theater in tum enhances the eacgerience of all the patrons. The attendance of the theater is 30Q,00� visits annually. Contract Compliance: As a result of the prestigious reputation of the theater and its schedule, guests originate from not only the metropolitan azea of Saint Paul and Minneapolis but from all parts of the Upper Midwest. Ms. Milgrom stated that 2/3 of the patrons are from the Twin Cites region and that students in the Saint Paul School System make up a significant core of their patronage. The contract was signed in May 1996. The project started in May of 1996 and ended by October 1996. It was completed withiu the desigiated period, and the STAR did not unpact the rate of its completion. The STAR funds were used to purchase and install the monitors and the handicapped accessible door. The outcome of the project agrees with the description in the coatract. All of the labor was completed through the maintenance staff of the Ordway or contracted labor. u 156 � 1 f � �g - i ag Comments: Ms. Milgrom was surprised that a fee was charged against the cuitural grant prior to the disbursement of the funds. She was not aware of this, and this created some short-term gaps in the financing of this project. She also thought that the requirements of the cultural STAR might discourage smaller atts organizations however she was not personally familiaz with any such cases. Ms. Milgrom believes that there could be less paperwork, and some of the STAR funds should be usable for administrative purposes. She thought 10-15% for administration would be appropriate. � Editor's Note: The City's service fee is no longer taken out of each organizarion's loan or grant awazd. � � � � � Handicapped accessible door at the Ordway � � � � �� 157 � � 95.528 Arts Resource Center Expansion Resources and Counseling for the Arts Grant Amount: $25,000 � Description: The objective of this project was to create an art resource center in Lowertown. This project has been implemented. Space at the Northem Warehouse, 308 Prince Street, Suite 270, in Lowertown was modified to accommodate administrative, meeting, counseling, and library services for the non-profit by the name of Resources and Counseling for the Arts (RCA). As a result of this project the square footage available to RCA has increased four-fold from their previous site in the Landmazk Center. This has enabled RCA to expand its services and more conveniently assist the arts community of Lowertown. The total cost of the renovarion project was $150,000 of which $25,000 came from the Cultural STAR program. Because of this project RCA has been able to increase the number of programs that it offers. It has augmented its telecommunication linkages in the new location with more telephone lines and computers with intemet access. Increased and enhanced features of the new site ha�e enabled RCA to serve 25% more artists in 1997 than it had served at this time last yeaz. This project benefits the neighborhood as RCA acts as a complement to other support services to the arts community in Lowertown. In fact since RCA relocated to Lowertown the Minnesota State Arts Board and the Jerome Foundations have opened offices in the immediate area. Clustering of Arts orgazdzations have benefited the community according to Joan Well, the executive director of RCA. Contract Compliance: RCA served 3,000 individuals from 1995 to 1996, and this increased to 4,000 from 1996 to 1997. 80% of the artists served were from the seven coimty metropolitan azea 7% are from greater Minnesota and most of the remainder are from Wisconsin and the Dakotas. RCA also provided resources and counseling to 260 arts organizations from 1996 to 1997. Ms. Wells said that RCA offers specialized services to its clients. Those services include information and technical advisetnent and general information on business management. They do not directly manage or represent clients, but they do connect artists and organizations to available resoutces. RCA additionally facilitated arts resource seminars that reached 3000 participants and separately directed 1500 artists towazd job opportuniries. The STAR contract was signed Febmary 23, 1996. The improvements for the project began in January of 1996 and were completed by April of 1996. Ms. Wells did not identify any barriers to the completion of the project, but she said the removal of lead paint altered the schedule to some degree. The STAR did not unpact the rate of completion after the improvements were started. The STAR funds were used Yo coavert a section of the wazehonse to usable office space. In particular it was used for electric, plumbing, lighting, wall, and general prepazation of the space. Comments: Ms. Wells indicated that the relationship between the Cultural STAR program and RCA ran smoothly. She stated that RCA had gotten funding from PED on prior occasions and that perhaps this positive history of interaction between the two parties made it easier. � 158 � � � 95.530 Saint Paui Chamber Orchestore The Saint Paul Chamber Orchesira Society,Inc. q� - �a� Grant Amount: $71,150 � Description: � � � � � � The objective ofthis project was to establish a street-level retail store in the Hamm Building that acts as a outlet for Saint Paul Chamber Orchestra Society Inc.'s merchandise and concert tickets This pzoject has almost been completed. A street level storefront has been established for the mazketing of Saint Paul Chamber Orchestra tickets and merchandise. It is located at 402 St. Peter Street, in the Hauuu Building. The unprovement of the space involved facade restoration, added walls, a new ceiling, lighting, and electrical improvements . The store has a ten yeaz lease on the space. Because of this project good press has been generated for the Saint Paul Chamber Orchestra. It has also given the organization an oppornurity to mazket its product to the public. The public is being served more fixlly with the addifion of the Orchestore because it is conveniently located in the center of Saint Paul, and its hours not only include weekdays but Saturdays also. According to Terry Schlender, the project manager, the store wili employee one full-time employee and six part-rime employees. As of September 1997 the store employed one full-time and two part-time employees, but with the advent of the concert season this is expected to increase. The Orchestore has had a slow business start because it opened at the end of the 1996-1997 concert � season and because the Hauun Building has not been easily accessible because of exterior renovations to the structure. As a result it is difficult to deternune who and how many this store will service. Mr. Schlender said most of the customers are first time subscribers, tourists, or downtown � workers. He had no idea of how many were served. He said it varies widely, but that the daily customer count is usually between 10 and 50. � � � � � � Because the Orchestore sells unique merchandise and because Saint Paui Chamber Orchestra merchandise is no longer sold at the concerts, the store's geographic area of service is lazge. The store not only serves downtown Saint Paul but the entire metropolitan azea according to Schlender. Contract Compliance: The STAR contract was signed in May 1996. The restoration of the 402 St. Peter site started in November 1996. The store opened April 1997. The ticketing system was in the store and operational in August of 1997. The exterior of this space should be fuushed before the end of the 1997. The STAR process of disbursing funds did not slow down the progress of the project. The STAR funds were matched by the improvements that the FIamm Building owners made to the Orchestore space. The improvements were in excess of $100,000. The STAR funds paid for shelving, computers, a central tickering system, and Orchestore linkages to the system. 159 � � The work on the site has been completed by contracted labor. Sweat equity was not performed for � the implementation of the project. � 160 � , � � � � � � �� 1 ! 1 1 � � � � � � 95.534 Cambodian Community Center Mnral Project United Cambodian Association of Minnesota Description: ��-ia� Grant Amonnt: $13,200 Loan Amonnt: $4,400 The objectives of this project have been to create several painted and one sculpted art mural for the exterior ofthe building, and also add flagpoles to the Cambodian Community Center, located at 529 Jackson. This project has been partially implemented. The first portion of the project has been completed. , It was the installation of flags along the front facade of the Cambodian Community Center at 529 7ackson. There aze eleven flags in totai, and they include the flags of the United States, Cambodia, the United Nations, and Mimiesota, as well as four signal flags and others honoring Southeast Asian � culture. The second phase of the project is also largely completed. A lighted mural celebraring Cambodian culture has been placed on the exterior of the building's first floor southern exposure. It is being crafted by a community artist. In addition, tlu painted murals have been completed and � are displayed on the east and south sides of the building. These murals were also completed by a community artist who's work is being funded through a grant from the Saint Paul Companies. Through this project the northeast comer of downtown will ha�e a new presence which reminds all residents, center members, and passers-by about the distinctive architecture and culture of Cambodia. It will reinforce and exemplify the Downtown Development CounciPs Plan to bring more cultural diversity to the downtown section of Saint Paul. Unlike its companion project in the Neighborhood STAR Program, this Cultural STAR Project will serve a broader audience. This building is located at the northeast gateway to downtown. It is visible from East Seventh Street as well as a downtown interchange from Interstate 94. Contract Compliance: The improvements will be on the building at 529 Jackson as set forth in the STAR contract. Geographically, this part of the project will serve a wide array of people from different places inside and outside of Saint Paul. The STAR contract was entered into April 1, 1996. The installation of the flags began in March of 1997 and ended in June of 1997. The remainder of the project was completed in November 1997, with some details to be finished by UCAM in the spring of 1998. The STAR funds have been used to buy the flags and install flagpoles. It has also been used to install the murals for the exterior of the building. 161 � 96.542 Science Museum of Minnesota Espansion Grant Amount: $300,000 � The City of Saint Paul Descripfion: The objective of this proj ect has been to create a 310,000 square foot Science Museum of Muuiesota complex with a 700 car pazlang garage. This project is being implemented currently. It will create a 31Q000 square foot riverfront e�ibit site for the Science Museum of Minnesota. The properry being developed is on Kellogg between Eagle Street and the District Heating Building. It does not have an official address as of yet. The new $95 million ea�pansion project is e�ected to bring 1.5 million people to the cultural district annually. It will serve a broad base of people from Minnesota and throughout the Upper Midwest. Because the funds for this project will be used by the City to pay for portions of the project, no contract was executed. Gmund brealdng for the pmject began in late spring 1997. According to Bob Geurs, ffie City's STAR account officer, the project is expected to be completed by the end of 1999. STAR funds for ttris project ha�e been disbursed. The $300,000 that was awarded went to help pay off an obligation with Saint Paul Foundation. Those funds were used to acquire a portion of the land on which the museum will be situated. � 162 � � 96.545 Friends of the Library's Used Book Store Friends of the Saint Paul Pnblic Library i� • .� Grant Amount: $25,000 � Description: � The objective of this project was to create a used book store that will sell old and excess copies of books from the Saint Paui Public Library System. � This project has been implemented. A space on the skyway level of the north side of the Norwest Bank Building has been adapted in order to house a used book store. It was through a cooperative arrangement developed by the City Purchasing Agent, Linda Camp, that this book store came to � light. The City had explored a number of different options to sell surplus supplies. After obseiviug the success that 20 other United States cities had eaperienced with surplus sales, Saint Paul decided � to explore this option. At this point a marriage between numerous if not all City departments was forged. The Saint Paul Library and the Friends of the Library took a proactive role to directly participate in the future outlet. It identified this retail concept as a more efficient and profitable � method to market its used books. The final development of this plan not only involved retail services but the addition of a library kiosk where patrons check out books. With this outlet the Friend's can more efficiently raise money for the library. This arrangement eliminates the need for librarians to tend to the sale of books because all books aze marketed at the designated ouUet. Moreover the sales aze more profitable because labor costs aze not as high as they would be if the sales were conducted in the library. Another benefit of this project is that it allows for the specialization of the units function. At this site the staff is dedicated to the sale of books and other surplus items which makes service more efficient than it would be if the sales were conducted at the library. The public has exceptional access to the used book store because of its popular location near the Norwest food court, and also its central location in the skyway system. Finally, the book store serves the lazger community by offering the public a wide variety of books at a reasonable prices. The used book store has one fall-time and one part-time emptoyee. The majority of the used book store patrons either work downtown or live downtown. The store serves between 120 and 140 customers per day. Contract Compliance: Craig Thompson, the store manager, indicated that the store serves a five block radius. Its service area would cover the majority of downtown Saint Paul. This service area overlays the Cultural Corridor. The contract was entered into July 1996. The improvement to the skyway space was begun in July 1996 and was completed in Mazch 1997. It was completed within the anticipated progress schedule. The STAR funds were used to install walls, signage, elechical rewiring, and lighting. Ali the funds haue been disbursed. 163 `J Comments: Peter Peazson, the project manager, said the grant writing for the STAR request was � simple. However the request for reimbursements was difficult. He suggested that money be advanced to the pmject rather than always hauing to request reimbursements. He thought that may ' organizations would not haue the money to put up front and wait for a reimbursement. He did not cite any organizations that he thought might have problems. Overall Mr. Pearson said it was not a , bad process. He would apply again with hesitation, but he did say there were easier sources available. He indicated that administrarive resources were a problem, and he thought it would be appropriate to charge up to 10% of project costs to that category. Mr. Pearson appreciated that the � partnership that was forged among the Saint Paul Library, the City of Saint Paul and the Friends of the Librazy was supported by the STAR pmgram. Finally Mr. Pearson said the interviewing pmcess was intimidating, and it might be easier if fewer of the boazd members were in attendance for each � of the individual interviews. He was also disappointed that delays in the interview process caused him to spend much of that day waiting to be interviewed. Brad, a store associate, said he likes working at the Saint Paul store. He said there aze good bargains. � "In fact I have bought so many books (from the store) I no longer have room for any more." LJ Friends of the Library's Used Book Store 164 �-�a� 96.546 Hillcrest Recreation Center Theater/Communication Room Highland Area Recreation Project Description: Grant Amount: $50,000 The objective of this proj ect is the creation of a state of the art theater for community use. The hope of the applicant is to instali a lighting and control system, a sound system and a complete projection system. With these items in place Highlands expects to be able to attract professional organizations to use the facility thus exposing local residents to professional performances. This project has not been implemented. As of eazly September 1997 the project was sfill getting bids. Gayle Summers, the project manager, indicated that she e�cpects the Highland Community Center Auditorium upgrade to be accomplished as set forth in the contract. The nnprovement will include the installarion of additional lighting, a control system, a sound system, and a complete projection system. The only possible change from the coniract's project descripfion will be reflected in the quality of the system. The contract indicated that the auditorium would be transformed into a state-of-the-art theater. In light of rising costs this might not be possible. Contract Compliance: Implementation of the improvements aze expected to begin in eazly October 1997 and end by the close of late 1997. Although the project is expected to be completed before the contract will expire, it will not be finished according to the projected progress schedule of spring 1997. Ms. Summers said that the primary delay to accomplishing this project has been getting a reasonable bid on the work. Although the contractor for this project has not been identified with absolute certainty, she is confident that this project can be implemented during this autumn. Ms. Smnmers is optimistic about the outlook because she has begun to receive bids that fall within the project budget. Comments: The Cultural STAR has worked well for the Highland Community Center. Ms. Summers appreciated the fact that she was able to present the theater project directly to the board. She said the process was not too sophisticated, and she thought that was good for participants. Ms. Sununers said that although this project was not in the Cultural Corridor it was rated highly because the center's improvement will serve the cultural needs of the community. 165 96.549 History Center Egterior Signage Grant Amonnt: $27,900 Minnesota Historical Society Description: The objective of this project will be to provide funding for the design and installation of exterior identificarion signage for the Minnesota History Center. A lazge identification monolith will be installed at the comer of Kellogg and John Ireland Boulevazd. Flagpoles and other hazdware displaying identifying banners will also be installed. This project has not been implemented. Shana Crosson, contact at the History Center for this project, said that as of late suwmer 1997 bids were being taken on the signage project. She indicated that the large idenrification monolith described in the contract will be installed on the corner of Kellogg and 7ohn Ireland Boulevazds. However the flagpoles also mentioned in the contract haue had to be redesigned because of weather conditions. The objective of this signage project is to increase the Minnesota History Center's presence in the Capitol Complex area. This in turn is eapected to increase the attendance. As a result of ttris the Minnesota Historical Society will be able to more fully accomplish its mission of educating the public about Minnesota and the region's past. The expected benefit accruing to the public because of this project will be a broader awazeness of this cultural and educational resource in Saint Paul. During the 1995-1996 school year the History Center served 75,000 school children. A large portion of whom are from Saint Paul. Hundreds of thousands more including families, visitors, and tourists from all age groups were served during the same period. It is expected that more will visit once the structure is identified as a museum. Contract Compliance: The geographic service azea for the museum is broad. The best served azea is Saint Paul and its environs however during the tourist season pa�ons visit from all points in the country. The STAR contract for this project was sign in November of 1996. Construction and completion of the pmject are expected before the end of autumn 1997. Crosson said that the STAR program did not delay the project. She said delays are attributable to staff turn over and reassignment of involved individuals' duties. Comments: Ms. Crosson said the Minnesota Historical Society was thrilled to receive this grant. However she did indicate that the pmcess and the procedute of the STAR program were uncleaz. Nevertheless they would apply for STAR funds again. 166 q�� a� 96.550 Cultural Corridor Streetscape Plan Minnesota Landmarks Description: Grant Amount: $35,000 The objectives of this project aze to install nine new historic lampposts, along with sixteen new trees on the sidewalk azeas of the building. The project is part of a larger effort by the businesses in the Ctiiltural District to enhance the areas neaz Mazket, St. Peter, Cedaz Streets and Kellogg Boulevazd. The proposed improvements would benefit the pedestrian environment by increasing safety, encouraging pedestrian traffic, visually enhancing the Culhiral District, and strengthening the historic chazacter of the downtown azea. This project has not been fully implemented. The decorative and historic lampposts azound the Landmazk Center will be augmented by nine new posts. The original number of trees in the plan has been decreased from 16 to 10 in order to complement the center and not clutter it. i Amy Walgrave, the project manager, indicated that the plan was partially implemented in October � 1997. They had expected that the project would be completed by summer, but the Public Works � DepartmenYs busy schedule prevented eazlier implementation. The project is expected to be fully completed by March 1998. � The STAR funds are being used for the trees and lights. Because of the prior lighting proj ect at the Landmark Center, it is unnecessary to add electrical capacity to the surrounding streets. All of the labor will be provided through the contractor for this project. No sweat equity will be used for the match or the actual impiementation of the project. Camments: The STAR process went smoothly. It was nice to be part of a program with a short response time. Ms. Walgrave also said the STAR staffhad been great. She said there was a fee that was charged against their STAR grant of which they were not awaze. It created some difficulty because it was not considered in the plans. She indicated that she is aware that it is no longer charged Ms. Walgraue said she would apply again. It enables them to do things that they would not otherwise be able to do. 167 96.551 Jackson Street Roundhouse Museum Development Grant Amount: $ 12,000 Minnesota Transportation Museum Description: The objective of this project is to bring the former mundhouse on Jackson Street up to building code compliance in order that it can be opened to the public as a Transportation Museum. The museum is expected to complement the Science Museum of Minnesota and the Miunesota Children's Museuxn. Contract Compliance: This project has not been implemented. Originally this application for STAR funds was geared towazd design and engineering features of the museum and its utiliries. Because this did not agree with the program limitations, the description was changed to involve the installation of the utility services. This change slowed the process down. Currenfly phase I which will be funded with STAR money will go towazd the installation of utility services. It is expected that implementation of the project will begin in late 1997 and continue until Spring of 1998. ISTEA (Intermodal Surface Transportation Efficiency Act) and MNDOT have also slowed the process time by long approval processes. Comments: Ms. Sims, the project manager, is grateful for the STAR program. She said that the STAR works well with ISTEA. It helps forge nice working relationship. fC.'f:3 I�, • ., 96.552 Museum on Wheels/ Storefront Gallery North East Neighborhoods Development Corporation Description: Grant Amount: $10,000 The objective of this project has been to create leasehold impmvements to a storefront on Maryland in Phalen Village , which will allow Northeast Neighborhoods Development Corporation (NENDC) to bring culturai e�ibits to that community. The project includes the purchase of portable display equipment, which will allow Northeast Neighborhoods Development Coxporation (NENDC) to bring cultural e�ibits to various locafions in NENDC's service area (banks, businesses, libraries, community centers), and leasehold improvements to the Phalen Village Storefront, which will allow the property to function more adequately as an art gallery. Contract Compliance: This project has been partially implemented. The portion of the project that has occurred involves the purchase of portable display panels. The other major part of tYris project, improvements to the space at 1545 Maryland Avenue East, has not taken place because Karen Swenson, the project manager, is intent to renegotiate the original STAR contract before further progress is reached. During an interview in September 1997 she indicated that a contract condirion requiring a five yeaz lease to ensure that the capital improvements have at least a five year life applies to a loan and requires repayment if not met. Swenson said she requested a grant for this project. At the time of signing the contract Swenson declared that she reached a verbal agreement with the STAR coordinators that the contract would be revisited at a later fime at which point the contract would stipulate ttiat the STAR funds were a grant. The project files and the contract indicate that the funds awarded for the Museum on Wheels project are a grant. Ms. Swenson stated that she has questions conceming whether the STAR program will honor her � future requests for reimbursement on this project. The STAR program requires verification of the length of the lease for the properiy at which the project is to be implexnented. Originally the � Northeast Neighborhoods Development Corpora6on (NENDC) had a ten yeaz lease on the storefront at 1545 Maryland Avenue East. Since the time the original lease was executed, the owner of the storefront sold the property. There was no stipulation in the lease that it would be honored by � successive owners during the lease period. The new party took ownership of the property at the end of August 1997. As of September 1997 Swenson has attempted to draft a lease with the new owner which will meet the site controi requirement of the C�ltlu�al STAR Program. Until a five year lease � between NENDC and the new owner can be signed it would not be prudent to make improvements to a space that may have to be vacated. , , � Up to this point the portable display panels haue been used not only at NENDC's office space on Maryland but also at the Landmark Center and the Saint Paul Civic Center. At these locations the panels have displayed pians for the new community center in northeast Saint Paul. 169 � Because of the uncertainty surrounding any possible lease with the new owners, Ms Swenson was � unable to address the question about how long it will be befare the project is fully implemented. ' � , ' � � � ' , C� � , � � ' LJ 170 � Q� - �aS 96.554 Minnesota Centennial Showboat Renovarion Grant Amonnt: $22,900 University of Minnesota College of Liberal Arts Description: The obj ective of this project will be to renovate the Minnesota Centenniai Showboat to meet health, safety, and access code requirements, and move it to a permanent location in the Mississippi River at Harriet Island. It will be the summer home of the University Theatre productions, and used by other organizations for a variety of purposes. This project has not been unplemented. The planned renovarion of the showboat is still intended to be executed as originally proposed. According to Tom Trow, the project manager, the boat which is a smiuner venue for University Theater productions, will be completely overhauled. Being able to use the Centennial Showboat is a boon to the University of Minnesota Drama Department because it allows them to perform long-n,nning productions. Trow said that productions that run for a longer period offer better training circumstances to students interested in performing arts. He said the students work in every aspect of theater when the troupe is using the showboat. This traiuing opportunity is not only good for the drama department but also for the community. The showboat allows the community to experience shows in a unique forum. The broader community is also served because young artists aze given an opportunity on the showboat to shazpen their sldlls as Thespians. From there many artist go on to perform in local productions. The showboat wili be docked at Harriet Island on the river&ont of Saint Paul. In particulaz it will serve tourists, theater enthusiasts, and the dratna community. Over past yeazs the boat has been boarded by 10,000 to 15,000 passengers annually. Attendance is expected to increase, the project manager did not laiow to what extent. The boat has and will be auailable for rental to other groups. Contract Compliance: The contract was signed on December 1, 1996. As of early September 1997 bids aze being quoted for the renovation of the Minnesota Centennial. Trow expected that unprovements will be started by November 1997 and be completed by the summer of 1998. Under this progress schedule the improvements will not be accomplished within the anticipated time frame, but it will be within the contracted time frame. Trow said the improvements have been delayed because they haue had irouble getting bids on the renovation, and he said when they do the cost is prohibirive. Moreover the project costs aze going up. Tmw believes that these circumstances aze attributable to the robust economy. He tlunks that as the construction season ends it will be easier getting a contractor who can work within their budget. Most improvements will be done by a contractor. Volunteers will paint and decorate the showboat. Comments: Trow said the amount of materials sent from the Cultural STAR Program to manage lus STAR pmject have been daunting. Maintaining the proper paperwork will be labor intensive he expects. Trow said the bureaucracy needs to be stream-lined. He also said the application fee is 171 inappropriate. The city should fully fund the operation of the STAR Ftogram. Mr. Trow said that his minimal interaction with the staff oFthe Cultural STAR Pmgram has been helpful. 172 , � 96.559 Jemne Building Project Saint Panl HRA ' � � � ' � , ' ' ' ' lJ LJ lJ ' C� a�-ca� Loan Amonnt: $382,800 This proj ect involved the acquisition of the 7emne Building on Saint Peter Street from the Mivnesota Museum of American Art. Inirially the purpose of the purchase was to improve the culhual corridor. It would do this by preserving a downtown art deco building, and potentially directing its use towazd one in the Arts. There were discussions that the building may be purchased by the organization wlxich represents the Leroy Neiman Gailery effort in Saint Paul. The group was given a deadline within which they could purchase ffie building. Tlus date has elapsed. As of early October 1997 the HRA is in the process of selling the Jemne Building. The building's purchase price has been set at $527,828. PED project services staff sent out offering packages to 50 potential developers. Interested purchasers can tour the Jemne at two open houses; one on October 2 from 1-3 pm and one on October 15 from 1-3 pm. Deadline for submitting proposals is 4:30 pm on November 25, 1997. 173 ' Credits Anthor: Fran Burns, Graduate Student Intem Humphrey Institute of Public Affa;rc University of Miuuesota Prepared for and printed by: Department of Planning and Economic Development City of Saint Paul 1400 City Hall Annex 25 West Fourth Street Saint Paul, MN 55102 For additional copies of this report, please call (612) 266-STAR (7827). The City of Saint Paul does not discrinunate on the basis of disability, race, sex, sexual or affectional orientation, age, color, creed, national origin or ancestry, marital status, religion, veteran status, or status with regazd to public assistance in adxnission to, or treatment or employment in, its programs or activities. 174