CHALLENGE HAS ENDED: Red Wing Redevelopment Challenge
THE APPLICATION PERIOD FOR THE REDEVELOPMENT CHALLENGE HAS ENDED
Click HERE to read the Press Release.
Red Wing Downtown Main Street in Partnership with
City of Red Wing | Red Wing Port Authority
Red Wing HRA | Jones Family Foundation | Goodhue County
Thank you to our sponsors:
Bauer Design Build | Red Wing Credit Union | Merchants Bank
The Red Wing Redevelopment Challenge is a new development program designed to spur economic and housing growth in Red Wing’s historic downtown area. Community partners are offering an incentive package worth up to $335,000 for 1 (one) redevelopment project that will be completed by December 2023 (or 18 months after the project is awarded) and located within the downtown Red Wing historic district of downtown.
The Red Wing Redevelopment Challenge utilizes existing funding sources dedicated to downtown revitalization in combination with local foundation funding to provide this financial assistance program. This pilot program will enable the community of Red Wing to market a suite of redevelopment financial assistance tools together, demonstrating the integration of multiple redevelopment resources and supporting vertical infrastructure projects that contribute to the continued development of downtown Red Wing.
This effort is organized by Red Wing Downtown Main Street with assistance from a variety of local businesses, organizations, and members of the Red Wing community. Partners include the City of Red Wing, Red Wing Port Authority, Red Wing Housing and Redevelopment Authority, Goodhue County, and the Jones Family Foundation.
Program Goals
Private property will be improved structurally and/or visibly.
Occupancy levels in downtown buildings will increase; vacant spaces will be used
Historic properties will be improved and preserved for future generations
Downtown property values will increase
Proper use of the property will occur with the highest and best uses
Program Details
Eligible Projects
Project concepts eligible for this program include projects that:
Rehabilitation and/or restoration of significant commercial properties within the historic downtown district. This can include, but is not limited to:
Exterior rehabilitation (front, rear, and side facades including tuckpointing and restoration)
Interior rehabilitation (first-floor commercial and upper-story housing or office)
Structural repairs and building system improvements
Adding additional housing units
A single specific phase of a large rehab. The project must have a specific defined focus and clearly identified scope of work, with a commitment to future phases demonstrated.
Compatible new construction including building additions with first-floor commercial and upper floor(s) commercial, office, or residential. Razing of an existing structure to allow for new construction will not be considered an eligible use of funds.
Multiple properties that are connected by a common need or issue. Multiple property projects might include but are not limited to: the removal of inappropriate slipcovers/siding materials; installation of sprinkler systems or other projects that increase safety; façade restoration for several buildings; activation of a series of highly visible rear entries; or installation of an elevator and common hallway linking several buildings to support upper story development.
Are well planned and achievable within a reasonable amount of time (target December 2023)
Eligible Applicants
Current building owners or prospective owners of buildings that are under a developer’s agreement or purchase agreement.
Matching Funds Requirement
A (1:1) match is required for all projects. In-kind contributions are permitted for no more than 35% of the project match. The in-kind match must be documented, professional services. Volunteer efforts and staff hours are important but cannot be used to meet match requirements for any project. At least 65% of the project match must be in cash.
The match requirement may include necessary project “soft” costs for professional service, i.e., architectural or engineering fees directly related to the project/property.
No previous expenditures of any kind will be considered a suitable cash match for a project. This statement applies to both new applicants and additional submissions for phased projects.
Advisory Panel/Evaluators
Advisory Panel will include representatives from:
Port Authority/City
HRA Representative
Jones Family Foundation
DTMS Board, Staff
Goodhue County
Rethos/MN Main Street
Application Review/Project Award Process
Applicants will be required to submit an official Pre-Application form. Applicants are encouraged to submit pre-applications even if the project isn’t fully formed yet. This will allow us to understand the interest in potential projects downtown.
Align projects that move forward with consultants as needed
Submit Project Plan/Full Application
Pitch Project and answer questions from Judges/Advisory Panel
Meet as needed with Port/HRA/DTMS to ensure adhesion to the guidelines of each program included in the incentive package
Award winner(s)
Periodic check-in on the project through construction
Grand Opening Celebration of Project
Ineligible Expenses
Acquisition, deconstruction, or disposal of property; furnishings; accounting services; legal services; loan origination or other financing costs; syndication fees and related costs; developer fees.
Timeline
Marketing Materials Developed and Distributed (ex: Press release, website, brochures, signs) : February 1, 2022
Pre-Application Open: February 1, 2022
Technical Assistance Provided as needed to eligible pre-applicants: February 1, 2022-ongoing
Full Application Open: February 1, 2022
Full Application Due: June 30, 2022
Recommendation to City of Red Wing, HRA, Port Authority for applicant winner(s).: by August 1, 2022
Project Finished Target by: December 2023
Map of Historic Downtown Area
Full Application Scoring Criteria
Project Impact: Proposed projects will exhibit a strong impact on the community and the downtown (30 points max)
A strong application will:
Be a catalyst for economic development in Red Wing (growth in jobs, new or existing businesses, development of new housing units, increased property values, public/private sector investment)
Make use of property that is largely vacant
Complement additional activities in the downtown area
Involve a building that is an important location or a building that has significant historic importance
A clear description of the site’s future use
Project Appropriateness: The proposed project will use appropriate rehabilitation practices and fit into the community goals. A strong application will (10 points max):
Exhibit sympathetic treatment of historic structures
Describe how the approach is suitable for this building
Describe how the project addresses the highest and best use of the property
Show appropriate recycling and diversion of materials from the landfill when appropriate. Include information about abatement of hazardous materials such as asbestos or lead
Shows that the project clearly fits into the development plans for the city/downtown
Includes evidence that there is support from the project from the City, adjacent property owners, and community
Project Funding/Partnerships: The proposed project will exhibit ample and reasonable funding from a number of sources. A strong application will (10 points max):
Show evidence-based estimates of the project’s estimated costs and sources and uses of funding
List all incentives or programs that are being used on this project
If in-kind support is used (ex: volunteering, gifted materials, etc), show sources matched with a specific element of the project.
Scoring:
Project Impact (0-30 Points) _______
Project Appropriateness (0-10 Points) _______
Project Funding and Partnerships (0-10 Points) _______
Total Score _______
Research for this Program
Greater Burlington Downtown Partners, 2020 Main Street Challenge Grant
Iowa Economic Development: Community Development Block Grant: Downtown Revitalization Program
Advanced Principles of Economic Vitality, Main Street America Institute
Downtown and Business District Market Analysis, Tools to Create Economically Vibrant Commercial Districts in Small Cities
Historic Real Estate Finance Course