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HomeMy WebLinkAbout2024-03-04 I01K Property Improvements Program Grant_Kissed PeachAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: March 4, 2024 AGENDA ITEM:Consideration of approval of a resolution awarding grant funding and authorizing payment to K Belken LLC, dba The Kissed Peach, as part of the City of Waukee Triangle Business Property Improvement Program FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: The City received a Property Improvement Program application from K Belken LLC, dba The Kissed Peach. Kirstin Belken, owner and operator of Kissed Peach recently acquired 540 Walnut Street to expand her medical spa business. The new and expanded space will allow Kissed Peach to add to its selection of services, increase sales and add employees. The space will be redesigned with improvements to the interior and exterior. The planned renovation is consistent with the City’s efforts to revitalize and activate downtown. The total renovation cost $225,000. Kissed Peach is requesting grant funds in the amount of $20,000. The business received three bids from the following: Innov8 Home Solutions, Michael Contracting Services, LLC and Home Revisions. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: This project will increase the value of 540 Walnut Street (former post office and church) while increasing retail activity in the downtown Triangle. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff has reviewed the application and receipts. The project is eligible for the $20,000 requested. This project also accomplishes goals from the City’s downtown action plan. RECOMMENDATION: Staff would recommend approval of the Triangle Property Improvement Program application submitted by K Belken, LLC dba The Kissed Peach. ATTACHMENTS: I. Triangle Property Improvement Program application PREPARED BY:Jennifer Brown REVIEWED BY: I1K THE CITY OF WAUKEE, IOWA RESOLUTION 2024- APPROVAL OF A GRANT AWARD TO K BELKEN, LLC AS PART OF THE WAUKEE TRIANGLE BUSINESS PROPERTY IMPROVEMENT PROGRAM IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, on August 17, 2020, the Waukee City Council approved a Triangle Business Property Improvement Program (Resolution #2020-313) to provide assistance to property owners in the renovation and upgrade of older commercial, office, and mixed-use properties within the designated Waukee Triangle Property Improvement District; AND, WHEREAS, the City is committed to fostering an increase in investments and business opportunity in the original downtown area of Waukee as the area has provided an identifiable node of the City’s past and serves as an opportunity to promote community growth into the future; AND, WHEREAS, K Belken, LLC, dba The Kissed Peach at 540 Walnut Street, has submitted a Triangle Business Property Improvement Program application requesting grant funding in the amount of $20,000.00 for investing approximately $225,000 to renovate and repurpose the property located at 540 Walnut Street; AND, WHEREAS, the Triangle Business Property Improvement Program application submitted by K Belken, LLC is in conformance with the guidelines, terms, and conditions set forth in the Triangle Business Property Improvement Program; AND, WHEREAS, Triangle Business Property Improvement Program grants are awarded as a reimbursement for the actual costs incurred by the applicant after the project has been completed; AND, WHEREAS, the City staff reviewed the Triangle Business Property Improvement Program application and recommended approval of the Triangle Business Property Improvement Program grant for K Belken, LLC; AND, NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this 4th day of March, 2024 that a Grant Award in the amount of $20,000.00 is approved for the renovations, upgrades and repurposing of the property located at 540 Walnut Street. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg Chris Crone Rob Grove Anna Bergman Pierce Ben Sinclair While you may have heard the name The Kissed Peach, what the brand looks to accomplish is new. Purchasing 540 Walnut st. Waukee, IA, and remodeling the location, will help bring traffic, employment opportunities, and revenue to downtown. Growing the area with potential sales and exposure. This location, currently vacant, will be the new location of my current business. Once the building renovation is completed, not only will the look and location of the business be different, the services will be expanded, employees will be hired, and the entire environment of the location will change. The current smaller location will give way to a new experience, one that welcomes the guest to come and enjoy hours of relaxation and treatments. Offering an unique Med Spa location to service the Waukee community. It is not uncommon for patrons of Spas and Med Spas to visit in groups, and to enjoy the surrounding areas, other venues especially restaurants, and coffee shops where they can continue to enjoy their relaxing day. The Waukee Triangle Property Improvement Program grant would help with off setting the projected $225,000 costs of this project, and increase the chance of successful rebranding and expanding. The purchase of the location and its remodel will have added benefits downtown, replacing a vacant building with a revenue generating business in the historic area. This project is also in line with the cities goals, of not only building traffic and usage of the downtown area, but insuring the Trangle’s future by utilizing and improving the current structures. Project Details. Renovations are being completed by local contractors helping the community by keeping as much of the funds here as possible. The project itself is large in scope. While keeping the structure intact there will be changes to give the building located at 540 Walnut ST. a fresh look. Changing the color of the façade and adding a mural, which will greatly enhance the character of the building. The interior is where the project really shines though. The space has been redesigned with a modern style from the floor to ceiling. Starting with changing the outdated flooring to a brush stained finished concrete, that will not only be visually appealing, but long lasting. Transformation continues with creating a reception area that will include retail space and waiting area, dividing the remaining space into distinct usage areas including 6 treatment rooms, a semi private room, 4-6 IV chairs, 2 restrooms, office area, staff break room, and storage room. The ceiling style will be open with a white spray foam insulation helping reduce energy consumption. Finally, to create the environmental appeal needed to stand out from other Med Spas the space will be accented with peach color, part of the branding, as well as green foliage, and rustic oak. The renovation will also ensure the location is ADA compliant allowing all members of our community to be welcome. While this $225,000 project will add major appeal, that is only part of our commitment to the area. Including other costs there will be over $810,000 dollars associated in bringing a vacant space into a new life. Receiving the grant would help with the costs of these changes, as well as, the unexpected costs any project creates and speed the ability to replace the current back parking area with new concrete. The future of downtown does not have to begin with its destruction, instead we utilize, revise, and change our historical downtown area together. Creating new opportunities for employment, revenue, and enjoyment of the Triangle district. Expanding the Way. Currently The Kissed Peach operates with a single service room. The new location will drastically expand the business ability to provide new services, and volume of guests. With the completion of the redesign project, will bring the ability to service groups, or single guests from one to a nearly a dozen people at once. Conservatively, using LivePlan software, we predict a 300% in sales volume. The Kissed Peach growth will include the hiring of 4-6 staff members to begin and will expand its current operation hours. The creation of the retail space will expand the business model as well by showcasing products that complement the services provided. The once vacant, former church building, will be part of what brings higher use of the downtown district. Med Spas may not only expand their business, but an area. The location will have improved looks, usage, and employment. Many guests may plan an afternoon out, dining, relaxing and exploring area businesses. Small Business Administration Loans. Small Business Administration (SBA) loans can be challenging. Many applicants do not make it through the application process, the requirements can be daunting, disqualifying the majority and about only half are approved. Though a federal program banks make the final choice and applicants may have to repeatedly apply at the financial institutions that are program members. The many compliance requirements that change by loan type and institution, take time, and are complex enough that a new industry, specializing in the application process, began. Not all business owners have the time to organize all the documents and records required to apply, have the skill to plan out sales projections, sales history, market analysis, and complete a business strategy that meets the required standard. The hurdles of SBA loans, while logical, will not be an option for the majority of business owners. Time, as stated, is one of the biggest challenges. Managing your business for most, is more than a full time job. Taking on so many roles from managing the daily business, human relations, purchasing, accounting, schedules, and more leave little time for other activities. The cash flow of the business may not be enough, the owners credit score can be an issue, collateral may not be enough, business owners may also be required to use personal property, and be required to sign agreement to repay even if business fails. Add the restrictions on how some loans are used, time to process the loan, and time the distribution takes to receive are also restrictive to others. In short SBA loans and the program itself are amazing but not everyone can qualify. The SBA loan process personally was a challenge. Though I had many systems in place to help the scope of the application, the detailed information, projections, and records are time consuming. The application for this project began in February 2023 and was completed 11 months later in December. The required and requested information added a great deal of stress to simultaneously owning and operating a business, while at the same time compiling reports, estimates, and funding uses. The SBA loan Application first draft was summited in May, closing was in December 11, some weeks spending comparable time as an proprietor. Understandably, stressful to complete with an active business and family needs. Still, the process honed my professional skills, and proved a worthwhile endeavor overall. The SBA loan application process was a challenging yet rewarding undertaking. With strong systems in place, I began compiling the detailed records, projections, and exhaustive information required in February 2023. The extensive reporting stretched over 11 months, with the final application submitted in December. Operating an active business while simultaneously gathering estimates, records, and compiling funding uses certainly added stress. Yet through diligent effort and perseverance, I submitted the first draft in May, closed in December, dedicating ample time weekly as an owner. Completing such a comprehensive application while running a business and tending to family needs was understandably taxing at times. Still, the process honed my professional skills and proved a worthwhile endeavor overall. Summary. The Kissed Peach: Revitalizing Downtown Waukee A vacant building on Walnut Street is about to get a new lease on life. Local business The Kissed Peach has purchased 540 Walnut and is transforming the space into a modern med spa, bringing employment, revenue, and renewed vibrancy to the downtown triangle district. This extensive $225,000 renovation will give the historic building a fresh facelift, from new exterior paint and mural to a completely redesigned interior with stylish, peach- accented décor. The space has been thoughtfully planned to include a retail area, reception, six treatment rooms, semi-private room, IV lounge, offices, break room, and ADA accessible restrooms. Not only visually appealing, the improvements like spray foam insulation will increase efficiency. The Kissed Peach’s current location has one service room. After renovations, the new spa can accommodate groups or individuals with up to a dozen service areas. Using conservative estimates, the larger space is projected to increase sales volume 300%. To support expanded hours and services, The Kissed Peach plans to hire 4-6 additional staff members. This revival of a vacant building into a thriving business aligns with the city’s goals for the triangle district. The Kissed Peach’s growth will likely boost traffic and revenues for other local businesses as spa guests dine and explore downtown. The new med spa exemplifies how revitalizing historic buildings can pave the way for employment and economic gains while preserving the area’s heritage and charm. The extensive SBA loan application process, while challenging, will make this vision a reality. Beginning in February 2023, I dedicated ample time compiling detailed records, projections, and information required for the comprehensive application. After submitting the first draft in May and working closely with lenders, I closed the SBA loan in December. The process required diligence to complete while simultaneously operating an active business.