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HomeMy WebLinkAbout2006 [10] Oct 18 CITY OF ST. JOSEPH www.cityofstjoseph.com Administrator Judy Weyrens st. Joseph Economic Development Authority Meeting Notice VVednesday,October18,2006 3:00 p.m. City Hall Mayor Richard Carlbom 1. Call to Order. Councilors AI Rassier Ross Rieke Renee Symanietz Dale Wick 2. Approval of Agenda. 3. Approval of Minutes. a. September 20,2006 4. Accounts Payable and Financial Report. a. Approval of Accounts Payable b. Approval of Financial Report 5. Business. a. Development Incentives Program b. CSAH 75 Renewal Project Update c. Business Retention and Expansion Program Update d. Bioscience Zone Acreage Allocation Application 6. Director Report. a. Prospect List/Activity Report. 7. Board Member Announcements. 8. Adjournment. 2." College Avenue North, PO Box 668 . Saint. Joseph, Minnesota .,6'374 Phone ,2.0.,6,.]2.01 Fax ,2.0.,6,.0'42. THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURHTORIY Meeting Minutes - Wednesday, September 20,2006 Present: EDA Board Members Ross Rieke, Caryolyn Yaggie-Heinen, and Ken Jacobson. Absent: Tom Skahen and Carlbom. Also Present: Cynthia Smith-Strack of Municipal Development Group and Mai Yang Agenda Chairperson Rieke introduced the agenda. Strack requested the addition of a discussion regarding a joint bioscience zone acreage allocation to Section Five on the agenda. Moved by Jacobson seconded by Heinen to approve the agenda as amended. Motion carried: 3-0. Approval of Minutes. EDA Chairperson Rieke noted the minutes from the July 19, 2006 meeting were included in the packet. Strack explained that approval of the July 19th meeting minutes was tabled in August since several members of the EDA were not present at the July meeting and wished to abstain from any motion. Rieke noted the minutes from August 16, 2006 meeting included in the packet. Motion by Jacobson, seconded by Heinen to approve the minutes from the July 19th and August 16th, 2006 regular EDA meetings as presented. Motion carried: 3-0. EDA Accounts Payable. Rieke introduced the topic. Strack noted accounts payable for the month included an invoice for contract services in the amount of $2,152.82. The total hours provided through August 31st equal 271.25, on target for the projected 420 hours of service for the year. Motion by Jacobson, seconded by Heinen to approve EDA accounts payable for the month of August 2006 in the amount of 2,152.86. Motion carried 3-0. Financial Report. Rieke introduced the agenda item. Strack noted the August financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Jacobson, seconded by Heinen to approve the August financial reports. Motion carried 3-0. CSAH 75 Renewal Project Rieke introduced the topic and requested Strack explain the draft corridor renewal plans for the first tier of lots adjacent to CSAH 75 between 2nd Avenue and NW and 3rd Avenue NE. Strack reviewed items included in the information packet including a parcel map of the area of potential interest, spreadsheets containing information regarding each property and redevelopment projections and analysis of potential impediments to redevelopment of the sub area. In the first tier of lots (sub area A) the development cost analysis resulted in an estimated development cost of $3,106,067. The second tier of lot (sub area B) resulted in an estimated development cost of $3,546,943. The existing properties within Subarea A are zoned Highway Business and Single Family Residential. Subarea B is zoned Single Family Residential and General (Downtown) Business. The future land use for Subarea A is a combination of Highway Business and Single Family Residential. In Subarea B future land use is guided toward Single Family Residential and General Business. If vehicular oriented redevelopment is to occur in the subareas, rezoning and comprehensive plan amendment requests would be required. A potential significant impediment to redevelopment as a super-majority vote is required to amend the Comprehensive Plan. Strack not next reviewed potential transportation issues associated with any type of redevelopment within Subarea A or Subarea B. Strack noted preliminary feedback from the County Engineer included a likely need for a left turn lane at the intersection of College Avenue North and Ash Street E and a right turn lane at College Avenue N. Strack suggest planning for an alternative access to the subareas either from Ash Street or the interior easVwest alley, since turning movements from Birch Street to CSAH 75 are curtailed. The EDA noted this is a potential impediment to redevelopment of the subareas. Rieke suggested finding out whether or not the two businesses in the first tier would be interested in relocating. Rieke suggested City staff be informed of the CSAH 75 renewal project and comments from staff be requested. The EDA noted a desire to reach out to the Planning Commission and City Council regarding any potential renewal activity. A next step would consist of considering comprehensive plan amendment and rezoning requests as a means of reducing impediments to redevelopment. Business Retention and Expansion Program Update Rieke introduced the agenda topic and requested an overview of the program from Yang. Yang updated the EDA members with a PowerPoint presentation on Business Retention and Expansion Program (BRE) and updated the Board Members on a presentation to the Chamber of Commerce. In addition to the Chamber presentation, Yang noted she sent out a press release to the Newsleader for publication consideration. Yang shared with the members that BRE is available online for easy access and download. The next step to the BRE program will be contacting businesses to schedule site visits and follow up with urgent issues that need to be addressed in the short-term. Strack stated that Yang should visit Daniel Funeral Home and Complete Electronic by next meeting. Project Inventive Analysis Rieke note the topic on the agenda. Strack stated that the previous meeting EDA Board members requested information regarding available incentives be compiled for potential distribution to business owners within the renewal area north of CSAH 75. In further discussion note specific incentives available for specific projects would vary widely with commercial incentives. Strack introduced three type of incentives that are available: tax abatement, local revolving loan fund (RLF) and the Minnesota Community Capital Foundation (MCCF). The analysis of tax abatement assumes 100% of the City's portion of property taxes will be abated for a term of ten years. The incentives policy precludes the issuance of bonds with debt retired from abated taxes, instead of "pay as you go" is employed. Other available incentives is St. Joseph Revolving Loan Fund and Minnesota Community Capital Foundation (MCCF). St. Joseph Revolving Loan Fund has a current balance of $20,000. It has a maximum term of seven years for material expense and 15 years for real estate purchase. MCCF is a program available statewide to loan funds to qualifying businesses, which cannot secure conventional financing or SBA loans to cover project costs. The EDA requested $10,000 be included in the annual CIP budget to capitalize the fund. The funding can be use for number of purpose including purchase of real estate options by the EDA. This could include a matching grant to businesses pursuing building enhancements or for short- term loans for construction activities. Heinen stated this was a great idea and would like business along CSAH 75 to be aware of this. Jacobson suggest having 'coupons' for building permits issued for commercial improvements. Reike suggested the EDA talk more about potential incentives. Staff and EDA members were asked to bring more incentive ideas to the October meeting. Bioscience Zoning Strack explained that a joint application process for bioscience zone acreage allocation was being pursued by the cities of St. Augusta, St. Cloud, St. Joseph, Sartell, Sauk Rapids and Waite Park. The joint application must be submitted to DEED by October 16th for consideration. If acreage is allocated and the tax incentive program funded, the City could further its position in the bioscience market sector. The EDA reviewed areas proposed to be included in the application for acreage allocation. The EDA supported the proposed areas as presented. Board Member Announcements Rieke note the topic on this agenda. Strack updated the EDA on the market research proposals submitted by Maxfield Research and McComb Group. Strack noted representatives from the College of St. Benedict, the City and the EDA will be meeting to discuss the proposals. Adjournment Motion by Jacobson, seconded by Heinen to adjourn. Motion carried 3:0. Meeting adjourned at 5:00 PM. www.cityofstjoseph.com CITY Of ST. JOSEPH DATE: October 11, 2006 Administrdtor Judy Weyrens MEMO TO: St. Joseph Economic Development Authority FROM: Joanne Foust & Cynthia Smith-Strack, Municipal Development Group MdYor Richdrd Cdrlbom RE: Accounts Payable - September 2006 September Financial Reports Councilors AI Rdssier Ross Rieke Renee Symdnietz Ddle Wick A. Accounts Payable: Following are Accounts Payable for the EDA's Consideration. Payable To MDG, Inc. Total For Fund September Econ. Dev. Service 150-46500-300 Amount $ 2,274.35 $ 2,274.35 Action: A MOTION is in order to approve the Accounts Payable. B. Financial Report: September financial reports for the EDA are following. The reports consist of: 1. EDA revenue to date. 2. EDA expenditures to date. 3. Check Register. 4. Fund Balances (Econ Dev. 150, TIF 1-3155, TIF 1-4156 and RLF 250). Action: A MOTION is in order to approve the financial reports. 2.., College Avenue North' PO Box 668 . Sdint. Joseph, Minnesotd .,6174 Phone ,2.0.,6,.]2.01 FdX ,2.0.,6,.0'42. .. INVOICE MUNICIPAL DEVELOPMENT GROUP, INC. 25562 WILLOW LANE NEW PRAGUE, MN 56071 952-758-7399 FAX: 952-758-3711 mdg@bevcomm.net City of St. Joseph Attn: Judy Weyrens City Administrator PO 668 St. Joseph, MN 56374 Invoice Date 09-01-06 I Payment Terms: 30 days I Customer 10 #: ST J06ED Project September Economic Development Services See attached detail Amount: $1,820.00 Monthly contract fee-35 hrs $ 454.34 1021 miles x .445 $2,274.35 Code to: 150-46500-300 for general EDA Remit To: Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 Dates-EDA September 9, 2006 EDA Office Hours September 13, 2006 EDA Office Hours September 15, 2006 Bioscience application meeting September 20, 2006 EDA Office Hours September 21, 2006 Meeting of DT Urban Environs Group September 30, 2006 EDA Office Hours Total September, 2006 8.50 hrs. C. Strack 9.50 hrs. C. Strack 1.00 hrs. C. Strack 8.00 hrs. C. Strack 1.00 hrs. C. Strack 7.50 hrs. C. Strack 35.5 hours Total MDG, Inc. 2006 Hours through September, 2006 = 306.75 Thank you! We appreciated the opportunity to work with you! I Check No. . Date: ~/ // :' 1 '. /) ~ (c/1V'?Cj;Z~ .S<f~C/~ v Principal City of St. Joseph EDA Report September 30, 2006 2006 YTD September 2006 Account Oescr Budget 2006 Amt YTO Amt Balance FUND 150 Economic Development E 150-46500-103 Leg islative Bod ies $525.00 $0.00 $0.00 $525.00 E 150-46500-151 Workers Compo $75.00 $100.00 $100.00 -$25.00 E 150-46500-200 Office Supplies $375.00 $0.00 $91.61 $283.39 E 150-46500-300 Professional $21,000.00 $2,152.86 $17,183.28 $3,816.72 E 150-46500-303 Engineering Fee $3,000.00 $0.00 $0.00 $3,000.00 E 150-46500-304 Legal Fees $750.00 $0.00 $72.50 $677.50 E 150-46500-321 Telephone $900.00 $39.49 $363.83 $536.17 E 150-46500-322 Postage $150.00 $0.00 $88.10 $61.90 E 150-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 150-46500-331 Travel & $375.00 $0.00 $73.77 $301.23 E 150-46500-340 Advertising $750.00 $0.00 $45.00 $705.00 E 150-46500-433 Dues & $0.00 $0.00 '. $8,000.00 -$8,000.00 E 150-46500-510 Land $0.00 $0.00 $0.00 $0.00 E 150c46500-582 Computer Software $225.00 $0.00 $0.00 $225.00 E 150-46500-587 Special Projects $0.00 $0.00 $0.00 $0.00 E 150-46500-700 Misc $0.00 $0.00 $0.00 $0.00 FUND 150 Economic Development $28,125.00 $2,292.35 $26,018.09 $2,106.91 FUND 155 TIF 1-3 Borgert (SKN) E 155-46500-300 Professional $701.25 $0.00 $301.11 $400.14 E 155-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 155-46500-340 Advertising $37.50 $0.00 $24.00 $13.50 E 155-46500-600 Debt Service - $6,230.57 $0.00 $10,563.57 -$4,333.01 E 155-46500-611 Bond Interest $7,809.86 $0.00 $0.00 $7,809.86 E 155-46500-620 Agent Fees $0.00 $0.00 $0.00 $0.00 FUND 155 TIF 1-3 Borgert (SKN) $14,779.17 $0.00 $10,888.68 $3,890.49 FUND 156 TIF 1-4 St. Joe Development E 156-46500-300 Professional $5,449.50 $0.00 $301.11 $5,148.39 E 156-46500-304 Legal Fees $0.00 $0.00 $0.00 $0.00 E 156-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 156-46500-340 Advertising $50.00 . $0.00 $24.00 $26.00 E 156-46500-600 Debt Service - $14,489.87 $0.00 $25,061.33 -$10,571.47 E 156-46500-611 Bond Interest $34,892.46 $0.00 $0.00 $34,892.46 E 156-46500-620 Agent Fees $0.00 $0.00 $0.00 $0.00 FUND 156 TIF 1-4 St. Joe Development $54,881.83 $0.00 $25,386.44 $29,495.39 FUND 250 Revolving Loan Fund E 250-46500-304 Legal Fees $0.00 $0.00 $0.00 $0.00 E 250-46500-490 Revolving Loan $0.00 $0.00 $0.00 $0.00 FUND 250 Revolving Loan Fund $0.00 $0.00 $0.00 $0.00 $97,786.00 $2,292.35 $62,293.21 $35,492.79 City of St. Joseph EDA Expenditures September 30, 2006 YTD % OBJ OBJ Oeser Budget Exp Expense Balance of Budget FUND 150 Economic Development DEPART 46500 Economic Development Authority 103 Legislative Bodies $700.00 $0.00 $525.00 25.00% 151 Workers Compo Insur. Premo $100.00 $100.00 -$25.00 125.00% 200 Office Supplies $500.00 $91.61 .$283.39 43.32% 300 Professional Services $28,000.00 $17,183.28 $3,816.72 86.37% 303 Engineering Fee "$4,000.00 $0.00 $3,000.00 25.00% 304 Legal Fees $1,000.00 $72.50 $677.50 32.25% 321 Telephone $1,200.00 $363.83 $536.17 55.32% 322 Postage $200.00 $88.10 $61.90 69.05% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 331 Travel & Conference Expense $500.00 $73.77 $301.23 39.75% 340 Advertisin9 $1,000.00 $45.00 $705.00 29.50% 433 Dues & Subscriptions $0.00 $8,000.00 -$8,000.00 0.00% 510 Land $0.00 $0.00 $0.00 0.00% 582 Computer Software $300.00 $0.00 $225.00 25.00% 587 Special Projects $0.00 $0.00 $0.00 0.00% 700 Misc $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $37,500.00 $26,018.09 $2,106.91 94.38% FUND 150 Economic Development $37,500.00 $26,018.09 $2,106.91 94.38% FUND 155 TIF 1-3 Borgert (SKN) DEPART 46500 Economic Development Authority 300 Professional Services $935.00 $301.11 $400.14 57.20% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 340 Advertising $50.00 $24.00 $13.50 73.00% 600 Debt Service - Principal $8,307.42 $10,563.57 -$4,333.01 152.16% 611 Bond Interest $10,413.14 $0.00 $7,809.86 25.00% 620 Agent Fees $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $19,705.56 $10,888.68 $3,890.49 80.26% DEPART 49301 Transfer to other Funds 700 Misc $0.00 $0.00 $0.00 0.00% DEPART 49301 Transfer to other Funds $0.00 $0.00 $0.00 . 0.00% FUND 155 TIF 1-3 Borgert (SKN) $19,705.56 $10,888.68 $3,890.49 80.26% FUND 156 TIF 1-4 St. Joe Development DEPART 46500 Economic Development Authority 300 Professional Services $7,266.00 $301.11 $5,148.39 29.14% 304 Legal Fees $0.00 $0.00 $0.00 0.00% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 340 Advertising $50.00 $24.00 $26.00 48.00% 600 Debt Service - Principal $19,319.82 $25,061.33 -$10,571.47 154.72% 611 Bond Interest $46,523.28 $0.00 $34,892.46 25.00% 620 Agent Fees $0.00 $0.00 $0.0.0 0.00% DEPART 46500 Economic Development $73,159.10 $25,386.44 $29,495.39 59.68% FUND 156 TIF 1-4 St. Joe Development $73,159.10 $25,386.44 $29,495.39 59.68% FUND 250 Revolving Loan Fund DEPART 46500 Economic Development Authority 304 Legal Fees $0.00 $0.00 $0.00 0.00% 490 Revolving Loan $0.00 $0.00 . $0.00 0.00% DEPART 46500 Economic Development $0.00 $0.00 $0.00 0.00% FUND 250 Revolving Loan Fund $0.00 $0.00 $0.00 0.00% $130,364.66 $62,293.21 $35,492.79 72.77% City of St. Joseph EDA Revenues September 30,2006 YTD % SOURCE SOURCE Descr Budget Rev Revenue Balance of Budget FUND 150 Economic Development 36210 Interest Earnings $0.00 $893.55 -$893.55 0.00% 36300 Reimbursement $0.00 $25,000.00 -$25,000.00 0.00% 39201 Transfers from Other Funds $37,500.00 $0.00 $37,500.00 0.00% FUND 150 Economic Development $37,500.00 $25,893.55 $11,606.45 69.05% FUND 155 TIF 1-3 Borgert (SKN) 31050 Tax Increment $0.00 $11,119.55 -$11,119.55 0.00% FUND 155 TIF 1-3 Borgert (SKN) $0.00 $11,119.55 -$11,119.55 0.00% FUND 156 TIF 1-4 St. Joe Development 31050 Tax Increment $0.00 $27,845.92 -$27,845.92 0.00% FUND 156 TIF 1-4 St. Joe Development $0.00 $27,845.92 -$27,845.92 0.00% FUND 250 Revolving Loan Fund 36210 Interest Earnings $0.00 $652.27 -$652.27 0.00% 36212 CDAP Loan Interest $0.00 $576.75 -$576.75 0.00% 39312 CDAP Loan Proceeds $0.00 $22,047.37 -$22,047.37 0.00% FUND 250 Revolving Loan Fund $0.00 $23,276.39 -$23,276.39 0.00% $37,500.00 $88,135.41 -$50,635.41 235.03% City of St. Joseph EDA Check Register September 30,2006 Search Name CHECK # Comments FUND DEPART Amount ' MUNICIPAL DEVELOPMENT CORP 037826 eda contract 150 46500 $2,152.86 TDS METROCOM 037838 telephone 150 46500 $39.49 LEAGUE OF MN CITIES 037866 2006-07 WC 150 46500 -$100.00 LEAGUE OF MN CITIES 037866 2006-07 WC 150 46500 . $100.00 LEAGUE OF MN CITIES INS TRUST 037899 WC 2006-07 150 46500 $100.00 $2,292.35 Administrdtor ludy Weyrens MdYor Richdrd Cdrl60m Councilors AI Rdssier Ross Rieke Renee Symdnietz Ddle Wick CITY Of ST. JOSEPH www.cityofstjoseph.com DATE: October 11, 2006 MEMO TO: FROM: RE: Economic Development Authority Cynthia Smith-Strack Municipal Development Group Project Incentive Analysis Background: At the September EDA meeting Board Members discussed various potential incentive programs, including but not limited to, tax increment financing, tax abatement, revolving loan fund, Minnesota Community Capital Foundation, Minnesota Investment Fund and Industrial Development Bonds. Board members also discussed alternative incentives relating to architectural services and building permit issuance. Staff was directed to bring additional information to the October meeting as to a grant program for architectural design services and building permit funding participation for certain commercial projects. In addition, EDA members were asked to continue to think about potential alternative incentives. Action: Review of grant program guidelines and RLF guidelines. If EDA would like to proceed with these types of programs, City Council approval is required. Also requested is additional discussion regarding alternative incentive programs. 2.') College Avenue North. PO Box 66s . Sdint. joseph. Minnesotd ')6,74 Phone ,2.0.,6,.72.01 FdX ,2.0.,6,.0,42. ST. JOSEPH COMMERCIAUINDUSTRIAL RENOV A TION/REHABILlT A TION GRANT GUIDELINES I. PURPOSE AND GOALS OF THE RENOVATION/REHABILITATION GRANT Renovation/rehabilitation grants are to be used for redevelopment/revitalization and enhancement activities within commercial and/or industrial parcels. Goals to be met include: 1.) Creation or retention of permanent private-sector jobs in order to create above average economic growth; 2.) Promotion of commercial/industrial redevelopment; 3.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 4.) Increase to the local tax base. II. ELIGIBLE APPLICANTS Eligible applicants include industrial and/or commercial property owners/businesses in S1. Joseph. III. GENERAL GUIDELINES 1.) No structure or applicant shall be eligible for more than a $1,000 grant every five (5) years. 2.) Maximum. grant amount of $1,000 or 90% of project cost, whichever is less. 3.) Location - The business must renovate or rehabilitate an existing commercial or industrial structure within the corporate limits of the City of S1. Joseph. 4.) Project costs must be eligible expenses under these guidelines. 5.) Project plans and specifications must meet City and building code and any applicable state/federal laws. 6.) The structure in which rehabilitation is proposed must be a minimum 1,000 square feet in size. IV. ELIGIBLE ACTIVITIES/EXPENDITURES Grant dollars may be used for the following activities as demonstrated by a written invoice from the person/firm performing said work: 1) Architectural services related to the reconstruction/rehabilitation of existing commercial or industrial buildings. 2) Reconstruction and rehabilitation of commercial or industrial buildings. 3) Building/fa~de enhancements. V. INELIGIBLE ACTIVITIES Grant proceeds may not be used for the following: 1) Parking lot improvements, municipal infrastructure extension/placement, water/sewer connection fees or storm water improvements. 2) New construction or expansion. 3) Housing projects. 4) Operating expenses. City of 81. Joseph Renovation/Rehabilitation Grant Guidelines Page 1 VI. APPROVAL CRITERIA The grant must be based on the following criteria; 1.) Creation of new jobs or retention of existing jobs. 2.) Increase in the tax base; 3.) The project can demonstrate that the investment of public dollars induces private funds; 4.) The project promotes redevelopment/renovation/rehabilitation on an industrial or commercial property and is not used the construction of a new building. VII. APPROVAL PROCESS The EDA reviews grant applications at scheduled monthly meetings (third Wednesday at 3 p.m.) providing a completed application is received at least two weeks prior to the meeting. Grant applications shall be in the form provided by the City/EDA. The EDA will formulate a recommendation and forward that recommendation to the City Council for final approval. City of St. Joseph Renovation/Rehabilitation Grant Guidelines Page 2 ST. JOSEPH REVOLVING LOAN FUND I. PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start-ups, expansions, and retentions. This may be accomplished by the following means: 1.) Creation or retention of permanent private-sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizen in the region to create a reasonable standard of living. 5.) Stimulation of productivity growth through improved manufacturing or new technologies. II. ELIGIBLE APPLICANTS Eligible applicants include most industrial, commercial and technological service businesses. III. GENERAL GUIDELINES 1.) Loan amount: minimum $2,500. Maximum $20,000 or 90% of RLF balance, whichever is less. 2.) Location - The business must locate, expand or remodel within the corporate limits of the City of St. Joseph 3.) Conventional lender or Equity - Conventional lending sources and/or owner equity must provide at least 50% of the total project financing. 4.) Job creation/wages paid - Applicant must identify jobs which will be created and wages paid to those employees within two years. Job and wage goals shall be consistent with the Business Assistance (Subsidy) Policy adopted by the EDAlCity. 5.) Interest Rate: Varies by applicant 6.) Terms: Equipment: 5-7 years, Land/Buildings: 10-15 years IV. ELIGIBLE ACTIVITIES/EXPENDITURES Loan dollars may be used for the following activities: 1) Acquisition of land 2) Construction, reconstruction, and rehabilitation of commercial or industrial buildings 3) Site improvements 4) Utilities or infrastructure 5) Machinery and equipment Loan dollars may be used to provide assistance for loan guarantees, interest buy-downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one-half of the cost of the project. V. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1) Operation or expansion of a casino 2) Housing projects 3) Operating expenses City of St. Joseph -Revolving Loan Fund Guidelines Page 1 VI. APPROVAL CRITERIA The grant or loan must be based on the following criteria; 1.) Creation of new jobs or retention of existing jobs. 2.) Increase in the tax base; 3.) The project can demonstrate that the investment of public dollars induces private funds; 4.) The project can demonstrate an excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) The project provides higher wage levels to the community or will add value to current workforce skills; 6.) Whether assistance is necessary to retain existing business; and VII. APPROVAL PROCESS The EDA reviews grant applications at scheduled monthly meetings (third Wednesday at 3 p.m.) providing a completed application is received at least two weeks prior to the meeting. Grant applications shall be in the form provided by the City/EDA. The EDA will formulate a recommendation and forward that recommendation to the City Council for final approval. VIII. LOAN APPLICATION/ORIGINATION FEE A 1 % loan application/origination fee is charged at the time of EDA approval of the loan. This is a non-refundable fee. City of 81. Joseph -Revolving Loan Fund Guidelines Page 2 ", ,;, '1\,,' '; \, i" '"(;'\' \v~--.\< ' iI'.', ;~':',,~~ " , " ,~ CITY OF ST. JOSEPH www.cityofstjoseph.com DATE: MEMO TO: October 11., 2006 Administrdtor Judy Weyrens FROM: Economic Development Authority Cynthia Smith-Strack Municipal Development Group RE: CSAH 75 Renewal Project Update Councilors AI Rdssier Ross Rieke Renee Symdnietz Ddle Wick MdYor Richdrd Cdrlbom Background: At the September EDA meeting Board Members continued their discussion of an urban renewal corridor adjacent to CSAH 75. The EDA has expressed an interest in attempting to remove impediments to redevelopment within the corridor and to examine the potential for securing real estate options on high priority properties with the intent of redeveloping the area. A! the September meeting the following work items were set forth: 1. Schedule BRE visits with the funeral home and Complete Electronics. Conduct BRE meetings prior to the October EDA meeting if possible. This task was assigned to Ms. Mai Yang. 2. EDA staff to bring potential redevelopment scenarios to staff meeting in October to gain preliminary feedback from staff on any potential redevelopment effort. This will occur on October 11th. An update will be provided at the EDA meeting. 3. Reach out to the Planning Commission and City Council regarding any potential renewal activity. 4. Actively work to reduce impediments to redevelopment, potentially including considerafl'on of comprehensive plan amendment and rezoning requests. A9,ti0n: .' ..' This item is fOr EDA information only. 2." College Avenue North. PO Box 66s . Sdint. loseph. Minnesotd .,6?74 Phone ,2.0.,6"72.01 Fdx )2.0.,6,.0,42. Administrator Judy Weyrens Mayor Richard Carlbom Councilors AI Rdssier Ross Rieke Renee Symanietz Dale Wick www.cityofstjoseph.com CITY OF ST. JOSEPH Memo To: From: Date: Re: City of St. Joseph, Economic Development Authority Mai Yang October 11, 2006 Business Retention and Expansion Program (BRE) In the previous, Ms. Mai Yang reviewed and presented Business Retention and Expansion Program at the EDA meeting. The Business Retention and Expansion introduction and survey are available online. Ms. Yang has been calling business owners to set up appointments and visiting firms. Last month meeting, Yang was asked to visit Complete Electronic and Daniel Funeral Home for the BRE program. She had visited Completed Electronic and wasn't able to visit with Daniel Funeral Home. Upcoming, Ms. Yang will finish her visitation and continue to address immediate issues and concerns of business. 2.., College Avenue North. PO Box 668 . Saint. Joseph, Minnesota .,6)74 Phone ,2.0.,6,.72.01 Fax ,2.0.,6,.0,42. www.cityofstjoseph.com CITY OF ST. JOSEPH DATE: October 11, 2006 Administrdtor ludy 'Weyrens MEMO TO: FROM: Economic Development Authority RE: Cynthia Smith-Strack Municipal Development Group Bioscience Zone Acreage Allocation Application Councilors AI Rdssier Ross Rieke Renee Symdnietz Ddle 'Wick MdYor Richdrd Cdrlbom AB~C~9t roun,.d: t' ., b' . II . . b " d b th 't" JOin app lea Ion process lor losclence zone acreage a ocatlon IS elng pursue y e CI les of St. Augusta, St. Cloud, St. Joseph, Sartell, Sauk Rapids and Waite Park. The EDA at the September meeting reviewed a preliminary map of potential areas within the City of St. Joseph which may be conducive to bioscience/biotech development. Since the September meeting, staff has drafted and submitted information to the St. Cloud HRA for inclusion in the joint application. Since the joint application must be submitted to DEED by October 16th for consideration the preliminary draft has been forwarded. 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E I/) (IJ .- Q) ~ s..:~ c Q) I/) (IJ > Q) (l)Q).c ..:3=- 2.,gm ~<5~ - (IJ [~1ij :2 2 fa 5 ..0 Q) :!:~ffi CD C S ::I t/) ! ::I 'S 2 - (I) l! ... .5 0; C o ;; II) CD ::I 00 St. Joseph Bioscience Acreage Allocation Application Questions 1 & 2: Included with mapping Question 3: Methods to Increase Economic ODDortunitv: The City of St. Joseph and the St. Joseph EDA have provided outreach to commercial and industrial businesses since the EDA was established nearly a decade ago. Marketing strategies have included, but are not limited to, a. Community brochure available. Brochure distributed at meetings with business prospects. b. Formal proposal template developed. A four-color template has been developed by the EDA to respond immediately to requests for information from development leads. The proposal has been reviewed by a national site selection firm and given an A+ rating. The proposal template incorporates GIS maps to highlight available sites, transportation corridors, future land use and potential development constraints. The proposal template also provides contact information, utility/infrastructure information and information regarding development assistance available from the City. The template is personalized for distribution to development prospects as leads are received. c. The City has created a fact sheet regarding incentives available for qualifying development and/or redevelopment projects. The fact sheet is distributed to development leads and available on the City of St. Joseph website. d. The City of St. Joseph website includes information relative to the EDA and EDA activities. e. The City of St. Joseph is a member of the St. Cloud Area Economic Development Partnership. As a member, the City lists timely information regarding available sites on the Partnership's website. f. The City of St. Joseph has a complete community profile listed at the DEED's MnPRO website. In addition, information regarding available sites is listed at the MnPRO site. g. A local business retention and expansion program has been developed. h. The City's Comprehensive Plan includes and economic development plan. i. The EDA annually updates five-year goals and an immediate twelve-month work plan. The City of St. Joseph has issued an RFP for market research pertaining to business and office development potential/absorption capacity and industrial market positioning. The City is currently reviewing proposals received. The market research report is expected to be complete by January 31st of 2007. The market study will assist the EDA in positioning the City within the regional marketplace as well as identifying specific industries to pursue. The market study will also be used as a tool providing business leads with applicable material. Question 4: Pro Dosed Tax ExemDtions: The City of St. Joseph and the St. Joseph EDA have approved business assistance (subsidy) criteria and a tax increment financing/tax abatement policy. The business assistance policy requires qualifying jobs created must be at or above 90% of the median wage for the applicable job classification within the St. Cloud MSA as illustrated by the most current QWEC data available from DEED. Question 5 - 7: Including with mapping. City of St. Joseph Bioscience Zone Designation Application Page 1 Question 8: Hiaher education/research institution. Being completed by Tom Moore - SCAEDP. Question 9: Including with mapping. Question 10: Development Plan Goals and Obiectives: The St. Cloud MSA is projected to grow to a population of nearly 110,000 by the year 2030, an 18% increase. The available labor force is expected to increase by a similar percentage. St. Joseph is included in the St. Cloud MSA and has been experiencing significant residential growth. The industrial sector has been expanding but at a slower rate. The number one goal of the EDA is to promote additional investment in the industrial sector. Several factors have lead to a limited number of available industrial sites. To those ends the St. Joseph EDA has been actively partnering with development firms to promote the production urban industrial lots at affordable prices. Specific Bioscience Development Plan goals/objectives include: 1. Mobilize and activate outreach to bioscience/biotechnology manufacturing and production facilities. 2. Coordinate local development plan with regional development plans. 3. Organize political, business, health care and educational communities around campaign to expand bioscience/biotechnology sector. 4. Provide solutions to bioscience/biotechnology industry needs relating to facilities and infrastructure. The St. Joseph EDA plans to specifically address quantitative goals for industrial development including those related to bioscience/biotechnology sector following the completion of a market research study. The EDA has informally discussed a goal to increase the commercial/industrial tax base by 1.3% annually (approximately $.5 million investment annually). Currently 16.5% of the City of St. Joseph's estimated $235 million market value is contained within the commercial/industrial sectors. Mn. DEED estimates 1,811 employment opportunities are available within the City of St. Joseph. Pending the results of the market research study, the EDA has informally discussed a goal of adding 15 to 25 employment positions annually. Question 11: Development Plan Strateaies: Specific bioscience development plan strategies for the City of St. Joseph include: 1. Establish five-year work plan for Bioscience subzones. 2. Develop a business park specifically designed for and marketed to bioscience biotech industries. 3. Analyze existing market conditions to determine potential bioscience/biotech market niche. 4. Conduct active outreach to target industries. 5. Analyze facility/infrastructure needs specifically relating to bioscience/biotech sector. 6. Develop marketing materials specifically targeted to bioscience/biotech sector. City of St. Joseph Bioscience Zone Designation Application Page 2 7. Coordinate local and regional marketing efforts to increase the reach of the marketing plans while avoiding duplication. 8. Join Science Initiative of Central Minnesota and conduct other means of outreach intended to organize health care, business, political and educational communities. 9. Conduct proactive analysis to determine specific needs of bioscience establishments that could be filled by facilities within the City of St. Joseph. 10. Ensure continual capacity exists to serve the needs of bioscience establishments including, but not limited to, municipal services, transportation infrastructure, electrical and telecommunications infrastructure. Question #12: Being completed by Tom Moore - SCAEDP. Question #13: Existing Resources: The City of St. Joseph currently offers the following resources and/or resource referral for business and industrial activities within the City. 1. Tax Increment Financing 2. Tax Abatement 3. Industrial Revenue Bonds 4. Small Business Development Loan Program (DEED) 5. Minnesota Investment Fund 6. Revolving Loan Fund 7. Minnesota Community Capital Foundation 8. Incentives from Energy Providers 9. Technical Assistance 10. Job Training/Retraining Resource Referral Question #14: Existina Economic and Community Development Bioscience zone designation would compliment and further local efforts by the St. Joseph EDA to broaden and diversify the local tax base and expand employment opportunities. The Economic Development Plan supports outreach to business/industry that is compatible with urban development, that accompanies existing establishments and that provides quality jobs. Existing 'incubator' space is available within the City of St. Joseph. The St. Joseph EDA has identified an 'urban commercial renewal corridor' adjacent to CSAH 75 within the community. The purpose of the renewal corridor is to recognize and remove potential impediments to redevelopment and infill within an aging commercial corridor. Commercial parcels included in the urban commercial renewal corridor are proposed for Bioscience zone designation. City of St. Joseph Bioscience Zone Designation Application Page 3 In addition, the City of St. Joseph/St. Joseph EDA have been actively involved in the creation of additional industrial lots within the community. At this time the EDA is working with two developers to establish a new business/industrial parks. The first development is undergoing preliminary platting at this time. The second developer is searching for potential lead tenants prior to submitting a conceptual sketch. Both developers have expressed an interest in establishing a specific area (or business park) devoted to bioscience industries. The City of St. Joseph has also made a conscious decision to pursue an downtown revitalization effort. Ownership of the downtown project has been transferred to the public at-large and private sectors under the supervision of the EDA. At this time approximately 50 people are serving on one of four committees (organization, urban environs, marketing and resource development). The purpose of the downtown revitalization effort is to create a pedestrian friendly, identifiable 'heart of the city' building on the presence of the College of St. Benedict within the Central Business District. The City of St. Joseph is a member of the St. Cloud Area Economic Development Partnership, the St. Cloud Chamber of Commerce, the St. Joseph Chamber of Commerce and the St. Cloud Area Planning Organization. Question #15: Reducina Reaulatorv Burden: The City of St. Joseph has information available for business establishments interested in expanding or locating within the City of St. Joseph. The information is available at the City's website or written copies can be picked up at City Hall. The information details land use and subdivision processes and applicable applications/steps. In addition, an EDA consultant is available to assist business applicants in navigating the development review process. Information pertaining to state and federal regulations and/or referral to appropriate agencies is provided to business prospects by the EDA consultant. Question #16: Being completed by Tom Moore - SCAEDP. Question #17: Job Growth: The zone designation and associated work plan will assist in the creation of an environment conducive to growth and expansion of manufacturing/production facilities within the bioscience industry timed to coincide with regional efforts by the Science Initiative of Central Minnesota and the St. Cloud Area Economic Development Partnership. City of St. Joseph Bioscience Zone Designation Application Page 4