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HomeMy WebLinkAbout2007 [03] Mar 21 CITY OF ~T. JOSEPH www.cityofstjoseph.com Administrdtor Judy Weyrens st. Joseph Economic Development Authority Meeting Notice Wednesday March 21, 2007 3:00 p.m. City Hall MdYor R.ichdrd Cdrlbom 1. Call to Order. Councilors Steve Frdnk AI R.dssier Renee Symdnietz Ddle Wick 2. Approval of Agenda. 3. Approval of. Minutes. a. February 21, 2007 4. Accounts Payable and Financial Report. a. Approval of Accounts Payable b. Approval of Financial Report 5. Business. a. Industrial Park Update. b. Economic Development Plan Update. 6. Board Member Announcements. 7. Adjournment. 2.-;- College Avenue North' PO Box 668 . Sdint. loseph, Minnesotd -;-6174 Phone -:;20.-:;6-:;.72.0; FcJx ,20 1t-,-,: 0-:;42 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ST. J;OSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes - Wednes.iay, February 21, 2007 . Present: EDA Board Members Oarolyn Yaggie - Heinen, Ken Jac,obson, and Dale WiCk. Tardy: Tom Skahen (arrived at 3:14 p.m.) and Mayor Richard Oarlbom (arrived at 3:30 p.m.). Also present: Oynthia Smith - StraCk of MuniCipal Development Group. Vice Ohairperson Jacobson called the February 21, 2007 meeting of the St. Joseph EDA to order. at 3:09 p.m. Oath of()ffice - Dale Wick. Vice Ohair Jacobson introduced the agenda item. StraCk administered the oath of office to Mr. Wick. The BOA cOngratulated the new Board Member. Agenda. Vice Ohairperson Jacobson introduced the agenda. Moved by Heinen seconded by Wick to approve the aQenda as presented. Motion carried 3-0. Approval of Minutes. EDA Vice Ohairperson Jacobson introduced the minutes from the January 17, 2007 meeting. Wick noled that while he was a present at the January meeting he was not officially a member of the EDA at that time and did not feel comfortable voting on the minutes. Action on the minutes waS tabled by consensus until a quorum of EDA members present at the January meeting was assembled. EDA Accounts Payable. Jacobson introduced the topic. Strack noted accounts payable for the month included telephone and MDG invoices. Accounts p<iyable forthe month totaled.$2,112.49. Motion by Heinen, second by Wick to approve the EDA accounts payable for the month of January 2007 in the amount of $2,112.49. Motion carried 3-0. . Financial Report. Jacobson introduced the agenda item. StraCk noted the January financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Wick second by Heinen to approve the December financial report as presented. Motion carried 3-0. Skahen arrived at 3:14 p.m. Fa~ade Architectural Grant Program Guidelines & Revolving Loan Fund Application. Vice.Ohairperson Jacobson introduced the topic. Strack referenced the information included in the EDA paCket. Strack noted that in 2006 the EDA began discussing various altemative incentive programs which could further multiple goals of the EDA including, but not limited to: revitalization/renewal of existing business establishments, proactive outreach to the business community, specific incentive programs which benefit business owners contemplating less intensive projects and the desire for architectural designs sensitive to community aesthetics and compliant with existing ordinances. Strack stated that one potential incentive discussed at length included the establishment of a matching grant. fund to assist with securing architectural services for redevelopment projects, EDA Minutes - February 21, 2007 especially those impact facades. Such a grant program could be used in cOnjunction with the Revolving Loan Fund to encourage the rehabilitation/renewal of existing structures within the business community. Strack nOted sample program guidelines and a sample application had been developed bY MDG in conjunction with the potentia'! program. In addition, a potential funding source had been identified (Le. transfer from EDA ReVOlving Loan Fund) for a small-scale pilot program. Strack- suggested the initial grant program could begin on a very small scale Le. total pool available for grant $5,000 - maximum per project grant envisioned to be $1,000 - therefore, up to five projects within the firsf year. Strack noted sample program guidelines are predicated on the following basic program concepts: . Requires a match from the applicant. . I's limited to a maximum of $1,000 for project. . Is to be used to reimburse property owners for the cost of architectural services relating to fac;ade revitalization/enhancement and/or site improvements. . Requires project be completed within a short period of time (i.e. less than two years) or grant to be refunded. .EDA to review/approve requests on a first come, first served basis. Strack referenced the guidelines and application included in the packet. Jacobson questioned the ability to use the grant program for 'site improvements'. Wick suggested an alternative may be to limit the scope to fac;ade improvements alone and/or to allow limited site improvements. Heinen suggested allowing the grant to assist with landscaping of the premises which could enhance site aesthetics. The EDA reached consensus to replace 'site' improvements with 'landscaping' improvements within the program guidelines. Jacobson inquired as to whether or not the fac;ade architectural design grant program would be available to businesses adjacent to CSAH 75 and/or owners of industrial uses. Strack noted 8S drafted the guidelines anowed. all commercial lots to tap into the proposed resource but excluded induStrial developments. Strack also noted the pilot program was proposed to be administered on a first corne - first served basis. The program was designed to 'reimburse' expenses as opposed to providing a grant up-front. earlbom arrived at the meeting. Wick inquired as to whether the City or the EDA would approve applications for the fac;ade architectural grant program. Strack stated the guidelines and application and program concept would need initial authorization from the City Council, but, if accepted by the Council, actual program administration is proposed for delegation to the EDA. Motion Heinen, Second Wick to recommend the City Council approve the concept, guidelines, and apPlication materials for a proposed Far;ade Architectural Grant Program for Commercial establishments in the City of St. Joseph and to authorize Strack to submit to City Council for consideration. Motion carried 5:0. Strack nated the praposed fac;ade architectural grant program could be augmented by accessing the EDA Local Revolving Loan Fund.. Strack noted the EDA has reviewed revolving laan fund process guidelines and application materials previously and that revised program guidelines and an application were included in the EDApacket far review/discussion. ,Strack nated the EDA EDA Minutes - February 21, 2007 would need to recommend the Oity Council approve the loan. fund guidelines and application as well as requests for asSistance received in the future pursuant to the loan fund. JaCObsC)n inquired as to WI'lether or not a.personal guarantee would be required. Strack noted the . guidelines proposed included that requirement. Wick noted the sedion regarding loan fees on Page two of the proposed guidelines included contradictory language. The EDA reached Consensus in recommem:ling a loan origination fee. Motion Skahen, Second WiCK to recommend. the City Counoil approve the reVOlving loan fund guidelines and application and to authorize Straok to submit to Oity OounciI for consideration. Motion approved 5-0. Approval of Minutes. Vice Chair JaCObson. noted the presence of Chairperson Carlbom and transferred control ofthe me.etingto MayorCatlbom. Wick noted since thefuU Board was now present it may be desirable to approve the minutes from the January 17, 2007 meeting Which were tabled by consensus eanier in the meeting. The Board agreed to review the minutes at this time. Motion Skahen, second Heinen to approve the minutes from the January 17, 2007 meeting. Motion carried 4:0:1 with Wick abstaining. Industrial Park Update. Carlbom introduced the agenda item. Strack noted St, Joseph has a shortage of 'shovel ready' industrial lots with full urban services and that, as a result, the City/EDAlMDG have been working encourage the development of additional shovel ready industrial lots in the southemmost portion of the 320-acre farm. Strack stated that Redwood Real Estate a land acquisition and development firm from Maple Grove has closed on a portion of the 320 acres and has control of the remaining acreage. The approximately 32 acres that has sold abuts the St. Joseph Industrial Park and is proposed for future induStrial use. Redwood Real Estate has completed a draft Environmental Assessment WorkShe.et (EAW) for the potential 32-acre industrial area. The EAW includes a conceptual map. of the potential business park. Strack noted a copy of the concept plan is. included in the EOA paCket and that concept plan has also been disclosed to the City Council and the Planning Commission. . The City Administrator has requested the EDA review and comment on the concept plan for the industrial park. One item to consider is a potential for mixed-use commercial/industrial (i.e. business park) at the subject location. A final item to consider is level of involvement by the EDA in the development of industrial lots within the proposed park. The Board reviewed the proposed concept plan and business park concept. Several Board Members expressed concern regarding lot sizes being too small. Canbom inquired as to what typical industrial leads were looking for in terms of lot size. Strack noted that active prospects were seeking in excess of four acres of property presumably to accommodate future expansion but historically prospects had indicated a desire to seek relief from the covenant-required three- acre lot sizelhe Buettner Business Patk. The miliimum lot size included in the zoning ordinance for light industrial use was one acre. Wick asked what size lots were selling in the township industrial park. Jacobson noted he thought the lots varied from about an acre to over three acres. Pursuant to additional discussion, the EDA reached consensus in recommending the developer consider combining the smallest lots to create a variety of lot sizes. EDA Minutes - February 21 , 2007 The EDA then discuss~d the con~pt of mixed commercial and industrial development within. the park. WIck noted he was skeptical as to whether or not commercial~ype development would occur near the intersection of the northern arterial and projection of 20th Avenue north. earlbom C!gre~d, Strack noted the broker ~preseritiQg thepro:pel'tynad m~nlioneda fitness JaOility for the northern poltion of the Site. The EDA concluded that market forces and the pace Of roadway development would likely drive the type of businesses locating in the proposed park. Strack requested input from the EDA regarding participation in industrial lot development through the issuance of a TIF revenue bond to. purchase acreage and install public utilities. Strack noted the concept would likely not be viable unless at lease one project went fOlWard immediately in conjunction . With land purchase and utility installation. The EDAlCity would incur riSk in conjunction with the iSSuance of a TIF bond if the. pace of develQpment did not remain brisk. Strack noted the advantage would be the ability to reduce land prices to make them more competitive Within the region. Strack noted the site was currently listed on the St. Cloud Area Economic Development Partnership's webSite at $70.,000/acre without improvements. Strack prQjected land prices to top $2.00 to. $2.50 per square foot if improvements were. made I:>Y the develo:per. The anticipated pricing When compared to existing industrial lots available within the St. Cloud Area was higher than average, especially When JOBZ availability in St. Cloud and Saltell was factored into the equation. The land price will have a significant impact on the pace of future development which could be compounded by the existence of available industrial lots in the nearby townShip industrial park. strack stated the City Administrator had noted the project could fit into the 2007 bonding program. Carlbom asked if the EDA would look to make a profit or to just break even if it pursued purchase of the property. Strack noted the EDA would look to sell property at the lowest possible price so as to make development attractive. Heinen inquired as to how the bond payments would be made. Strack noted the City would capture tax increment to make bond payments and therefore, the pace of development would need to be brisk. Wick asked if the property owners would consider sale of existing land and if 50 at what price. Strack noted the concept of active participation by the EDA was first occurring at this time and unless the EDA and Council supported the concept additional time/resources spent on the project was being curtailed. Therefore, she did not specifically inquire as to potential for sale of property to the City/EDA but did' note she had a conversation with the property broker who asked if the City would buy the property. The EDA discussed the type of leads currently active and the volume of land those prospects were seeking. In addition, the EDA discussed the potential project parameters in terms of volume of acreage to consider. The EDA reached' consensus in noting the next step would be to discuss the potential for such participation with the City Council at the upcoming staff/Council/consultant retreat. Jacobson departed from the meeting due to a previous appointment. CSAH 75 Renewal Corridor. Carlb.om introduced the agenda item. Strack noted that the EDA discussed feedback from property owners in a selected area adjacent to CSAH 75 at the January meeting and then directed. Strack to consult with rental property owners to request input. Strack noted input included affirmation o.f the unwillingness of some property owners to consider sale at this time and concern regarding market saturation from proposed commercial developments such as Mill stream Shops and a new multiple tenant facility near CSAH 75 and 8th Avenue. In addition, some feedback indicated the City would likely need to be very active in reducing barriers to redevelopment. EDA Minutes - February 21, 2007 Carlbomnoted Jacobson Should be present for the -continued discussion as his insight would be espeoially pertinent. earlbom requeStf)d furtherdisoussion be continued to the next meeting, the Board agreed. Information oontainedat the close of the packet relating to the 45th Annual. SCSU Econornic Education Winter Institute and the concept for a multiple tenant retail facility adjacent to CSAH 75 and 8th Avenue were. noted. Board Member Announcements. Mayor Carlbom noted he attended the St. Cloud Area Economic Development Partnership me.eting earlier in the day. Carlbom Stated the meeting inCluded a. presentation by the SCSU EConomic Development Center and information on the forthcoming Farm Show to be held at the S1. Cloud Civic Center. Skahen noted potential issue affecting his property. Adjournment. Meeting adjourned by consensus at 4:30 PM EDA Minutes - February 21,2007 www.cityofstjoseph.com CITY OF ST. JOSEPH DATE: March 15, 2007 Administrdtor Iud)! Weyrens MEMO TO: S1. Joseph Economic Development Authority Cynthia Smith-Strack, Municipal Development Group Accounts Payable - March 2007 March Financial Reports Councilors Steve Frdnk A. Accounts Payable: AI Rdssier Following are Accounts Payable for the EDA's Consideration. Renee Symdnietz Payable To For Fund Ddle Wick MDG, Inc. March Econ. Dev. Service 150-46500-300 TDS Metrocom Telephone Total Amount $ 2,469.17 $ 39.06 $ 2,508.23 Action: A MOTION is in order to approve the Accounts Payable. B. Financial Report: March financial reports for the EDAare 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 1-4 156 and RLF 250). Action: A MOTION is in order to approve the financial reports. 1) College Avenue North' PO Box 668' Sdint. joseph, Minnesotd )'6,74 Phone 1 )LO.~0-:;.7LOI roC] ;~ -; 2- (1 ~ () -:; . 0 '; 4 2.. ~....1..\.......... ~."" 'RVO'I!CE MUNICIPAL ~OPME~-'GROUPf INC. 25562'WlLLQW LANE NEW P~G.lJ~,MN56071 952'"7S8;'T~$9 FAK:952;;'7'58.a711 mdg@bevcomm.net Oity Gf St. J.os~ph Aftn: J:uCly W~tens Oity Administrator PO B68 S1. Joseph, MN 56374 Invoice Date 02-10..07 I Payment Terms: 30 days .1 Customer ID #: ST J06ED Project February Economic Development Services See attached detail . Amount: $1,925.00 Monthly contractfee - 41.75 hrs. $ 544,17 1,122 miles x .485 $2,264.99 Code to: 150-46500...300 for general EDA Remit To: Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 Dates-EDA February 1, 2007 EDA Office Hours February 7, 2007 Hours at MDG Office February 12, 200THours at MDG Office February 14,2007 EDA Office Hours February 15, 2007 Hours at MDG Offices February 21, 2007 EDA Office Hours February 28, 2007 EDA Office Hours Total February, 2007 1.50 hrs. C. Strack 7.50 hrs. O. Strack 2.00hrs. C.-Strack 9.25 hrs. C. Strack 8.50 hrs. C. Strack 7.50 hrs. C. StraCk 7.00 hrs. C. Strack 41.75 hours Total "'DG~ Inc. 2007 Hours through February~ 2007 = 93.50 Thank you! We appreciated the opportunity to work with you! I Check No. Date: 4~1A1-L Principal Account Oeser FUND 150 EconomiC De.veJQpment E 150-46500-'103 L.~gisJativeaodies . E 15004650Q,151 Workers Coinp. E 15046500,200 Office SllPplies E 15046500~300 Professional E 15046500.,303 Engineering Fee E 150465QO.,S04 lil11ga,1 Fees E 1504.6500~321 Telephone E 150.046500.322 Post(;1gl:! E 150.046500"327 Tax Increment E 15046500,331 Tra.vel & E 15046500.340 Advertising E 15046500.0433 Dues & E 15040500.510 Land E 150'46500.,58? Computer Software E 15.0-,46500,.587 Special Projects E 15046500-700 Misc FUND 150 Eccmoinic De.velopment FUND 155 TIF 1-3 Borgert (SKN) E 155-46500.300 Professional E 155-4650.0.327 Tax Increment E 155-40500.,340 Advertising E 155-46500-'600 Debt Service - E 15546500,.611 Bond Interest E 155-46500-'620 Agent Fees FUND 155 TIF 1-3 B.orgert (SKN) FUND 159 TIF 1-4 StJoeDl:!velopment E 150-46500.300 Professional E 1560465.o0.;~'04 LEi!.9al Fees E 156.046500.,327 Tax Increment E 156-46500-'340 Advertising E 156-46500-600 Debt Service - E 156-46500.,611 Bond Interest E 156-46500-620 Agent Fees FUND 156 TIF 1-4 St. Joe Development FUND 250 Revolving Loan Fund E 250-46500.304 Legal Fees E 250-46500-490 Revolving.Loan FUND 250 Revolving Loan Fund 2007 YTD Budget $750,00 $150_00 $500.0.0 $24,100.00 $2,000.00 $1,00Q,.00 $600.00 $250.0.0 $0.00 $500.00 $500.00 $0.00 $0.,00 $300..00 $0..00 $0,00 $30,650.00 $935.00 $0.00 $50,.00 $8,307.00 $10,413.00 $0.00 $19,705.00 $4,700.00 $0,00 $0.00 $50.00 $14,996.00 $32,196.00 $0.00 $51,942.00 $0.00 $0.00 $0.00 $102,297.00 City of St. Joseph BOA Rep.ori February 28, 21'07 February 20.07 Amt $0.00 $0.00 $0.00 $2,264.9f1 $0.00 $0.0.0 $39..06 $0.00 $0.00 $0.00 $0,00 $0.00 $0.00 $0.00 $0:00 $0.00 $2,304.05 $0.00 $0.00 $0.00 $0,00 $0.00 $0.00 $0,00 $0.00 $.0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,304.05 2.007 YTD Anlt $0.00 $.D..OO $0.00 $4,334~64 . . $.o.~OO $0.00 $81.90 $0.00 $0.00 $0..00 $0.0.0 $0.00 $0.00 $0.00 $0..00 $0..0.0. $4,416.54 $0.00 $0.00 $.0..00 $0,00 $0.00 $0.00 $0.00 $0.00 $0,00 $0.00 $0.00 $0.00 $0.00 $0.0.0. $0.00 $0.00 $0.00 $0.00 $4,416.54 Page 1 Balance $750.00 $150,00 $500.00 $19,765.36 $2,000.00 $1 ,.000,00 $518.10 $25.0..00 $.0..00 $5.00.00 $500.00 SO,OO $0.00 $30.0.00 $0,00 SO.OO $26,233.46 $935.00 $0.00 $50.00 $8,307.00 $10,413.0.0. $0.00 $19,705.00 $4,7.0.0.00 $0.00 $0.00 $5.0..00 $14,996.0.0. $32,196.00 $0.00 $51,942.00 $0.00 $0.00 $.0.00 $97,880.46 City of St. Jos~p.h BDA Revenues Page 1 Current Period: February 20.07 . SOURCE SOURCE Des.cr '/'TO % Budget: Rev Revenue Balance of BUQgl!t $0.00 $17,000.00 -$17,000.00 0.0.0% $0.00 $0,.06 $0.00 0.00% $0,00 $0.00 $0.00 0.00% $0.00 $0.00 $0.00 0.00% $0.00 $17,000.00 -$17,000.00 0.00% $0.00 $0.00 $0.0.0 0.00% $0.00 $0.00 $0.00 0.00% $.0.00 $0.00 $0.00 0.00% $0.00 $0.00 $0.00 0.00% $0.00 $0.00 $0.0.0 0.00% $0.00 $0.00 $0.00 0.00% $0..00 $0.00 $0..0.0 0.00% $0..00 $0.00 $0.00 0.00% $0.00 $17,000.00 .$17,000.00 0.00% FUND 15.0 Ecoriomic Development 3415.0 TIF1MIF Deposit 36210 Interest ESrriings 363.00 Reimbursement 392.01 Transfers from Other FUND 150 Economic Development FUND 155 TIP 1-3 B.orgert (SKN) 31050 Tax Increment FUND 155 TIF 1-3 B.orgert (SKN) FUND 156 TIF 1-4 81. Jo.e D.eve.lopment 310.50 Tax Increment FUND 156 TIF 1-4 81. Joe Development FUND 250 Revolving Loan Fund . 36210 Interest Earnings 36212 CDAP Loan Interest 39312 CDAP Loan Proceeds FUND 250 Revolving Loan Fund City of St. Jos.eph BOA EKpenditur-es February 28, 2007 Page 1 YTD 0;. OBJ OBJ Oeser BUQget EltP Exp.ense Balance of Budget FUND 150. Economic Development DEPART 4650.0. Economic [)evelopment Authority 10.3 Le.gisJative Bodies $750,0.0. $0.0.0 $750..0.0 0.0.0% 151 Workers Compo insur. Premo $150.00. $0...00 $150..0.0 0..0..0.% 20.0. Office' Supplies $50.0..00. $0..0.0 $50.0..0.0 0.0.0% 30.0 Professional Services $24,10.0.00. $4,334.64 $19;765.36 17.9"9% 30.3 Engineering Fee $2,00.0,00. $0..0.0 $.2,00.0..0.0 0.00% 304 . LegalFees $1,.0.0.0.00. $0.00 $1 ;0.0.0])0 0.,0.0.% 321 Telephone $6.00.00. $81 .90 $518.10. 13.65% 322 Postage $250,00. $0..00 $250.0.0 0.,0.0% 327 Tax Increment Certification $0,00. $0..0.0. $0..0.0 0.00% 331 Travel & Conference $500.0.0. $0.0.0 $50.0..00. 0,00% 340 Advertising $50.0..0.0 $0.00 $50.0..0.0 0.,0.0.% 433 Dues & Subscriptions $0.0.0 $0:00 $0.00 0..00% 510. Land $0,00 $0.00 $0.0.0 0.00% 582 Computer Software $30.0.00. $0..00 $30.0.00 0,0..0% 587 SpeCial Projects $0.00 $0.00 $0.0.0 0.0.0.% 70.0 Misc $0.00. $0.00 $0.00 0.0.0.% DEPART 4650.0 Economic Development $30.,650.00. $4,416.54 $26,233.46 14.41 % FUND 150. Economic Development $30.,650.0.0 $4,416.54 $26,233.46 14.41% FUND 155 TIF 1-3 B.orgert (SKN) DEPART 46500 Economic [)evelopment Authority 30.0 Professional Services $935.00 $0.00 $935.0.0 0.0.0.% 327 Tax Increment Certification $0.00 $0.00. $0.0.0. 0..00.% 340. Advertising $5.0..0.0. $0.00 $50.0.0. 0.,0.0.% 60.0. Debt Service - Principal $8,30.7.0.0. $0..00. $8,307.0.0. 0..0.0.% 611 Bond Interest $10.,413.0.0 $0..00. $10.,413.0.0. 0..0.0.% 620. Agent Fees $0..0.0. $0..0.0. $0..00. 0..0.0.% DEPART 4650.0 Economic Development $19,70.5.0.0. $0..00 $19,70.5.0.0. 0..0.0.% DEPART 49301 Transfer to other Funds 70.0 Misc $0..00 $0.0.0 $0.00. 0..00% DEPART 4930.1 Transfer to other Funds $0.00. $0.00 $0.00. 0..0.0.% FUND 155 TIF 1-3 Borgert (SKN) $19,705.00. $0.00 $19,70.5.00. 0..0.0.% FUND 156 T1F 1-4 S1. Joe Development DEPART 46500 Economic Development Authority 300 Professional Services $4,700..0.0. $0.0.0. $4,700.00 0..0.0.% 30.4 Legal Fees $0..0.0. $0..00. $0.00 0..0.0%' 327 Tax Increment Certification $0.0.0. $0..0.0 $0..00. 0..0.0.% 340 Advertising $50..0.0. $0..0.0. $50..00. 0..0.0.% 600 Debt Service - Principal $14,996.0.0 $0..00. $14,996.0.0. 0...0.0..% 611 Bond Interest $32,196.0.0 $0..00 $32,196.00. 0..0.0.% 620 Agent Fees $0..0.0 $0..0.0. $0..00. 0..0.0.% DEPART 4650.0 Economic Development $51,942.0.0 $0..0.0. $51,942.00. 0.0.0.% FUND 156 T1F 1-4 S1. Joe Development $51,942.0.0. $0..0.0 $51,942.0.0 0..0.0.% FUND 250 Revolving Loan Fund DEPART .4650.0 Economic.Development Authority 304 Legal Fees $0..0.0 $0..0.0 $0..00 0..0.0.% 490. . ReVOlving Loan $0..0.0 $0..0.0 SC.OD 0..0.0.% DEPART 4650.0 Economic Development $0..0.0 $0..0.0 $0.0.0. 0..0.0.% FUND 250 Revolving Loan Fund $0.0.0 $0.00 $0.00. 0..0.0.% $102,297.0.0 $4,416.54 $97,880..46 4.32% Search Name CHECK # MUNICIPAL DEVELOPMENT CORP TDS METROCOM 038510 03B519 Oity of St. J.OS~fi.h SOA Check R~gis:ter FeBruary 26, 280'7 Comments FUND eda contract telephone 150 150 Page 1 . CEPART Amount 46500 46500 $2,264.99 $3.9.06 $2,304.05 Administrdtor Iud)' \We)'rens Md)'or Richdrd Cdrlbom Councilors Steve Frdnk AI Rdssier Renee S)'mdnietz Ddle Wick www.cityofstjoseph.com CITY Of ST. JOSEPH DATE: March 15, 2007 MEMO TO: Economic Development Authority FROM: Cynthia Smith-Strack Municipal Development Group RE: ~ Industrial Lot Development Update Background: As you're aware the City of St. Joseph has a shortage of 'shovel ready' industrial lots with full urban services. At the previous meeting the EDA discussed participation in industrial lot development through the issuance of a TIF revenue bond to purchase acreage and install public utilities. The EDA reached consensus in noting the next step would be to discuss the potential for such participation with the City Council at the upcoming staff/Council/consultant retreat. The retreat was held on Wednesday, March 14th, The group recommended the EDA perfQW add;itional research to determine what the best long-term approach toward poten,tia'{ participation in industrial development may be.'" Action: This item is for information and discussion. 2) College Avenue North' PO Box bbs . Sdint. joseph, Minncsotd )'b)74 C,) 11 0 1'1 l'~. -,' 2 C', . -:; 0/. 7,' -.... 2 C) I .\,' , . -:;20,-:;b-:; 0-;47, THIS PAGE INTENTIONALLY LEFT BLANK EOONOMIC D'EVELOP'MBNT I. INTRODUCTION The City of St. Joseph and the St. Joseph Economic Development Authority have made a conscious decision to identify a connection between economic development and quality of life. By working together, the City, the EDA and the community can help to maintain a strong economy by creating and retaining desirable jobs, which provide a good standard of living for individuals. Increased personal income and wealth can increase- the tax base so as to allow the City of St. Joseph to provide the level of services residents expect. The City and EDA find a balanced, healthy economy is essential for the community's well-being. . This portion of the Comprehensive Plan will: · Provide an overview of economic development and economic trends in S1. Joseph; · Summarize existing e.conomic development related projects; · Provide an assessment of commercial development and establish goals for future (re) development; and · Provide an assessment of industrial development and establish goals for future (re) development. II. ECONOMIC DEVELOPMENT OVERVIEW A. Location. The City of St. Jos~ph is located in Central Minnesota in Stearns County within the St. Cloud Metropolitan Statistical Area (MSA). Interstate 94 (25,000 average daily traffic i.e. adt) and Stearns County Highway 75 (22,500 adt) traverse the City of St. Joseph which is on the urban fringe of the MSA. Through traffic (employment and retail destination) typically traverses the City en route to establishments within the core of the St. Cloud MSA progressing to the east in the morning and the west in the afternoon. B. PODulation. The 2005 Census ACS estimates the St. Cloud MSA has a population of 173,000 of which 26.7% are under the age of 20 and 11 % are aged 65 or older. The Minnesota Demographer's Office projects the population of the St. Cloud MSA will increase to 222,330 persons by the year 2030. Within Sf. Joseph the 2005 estimated population (Mn. Demographer's Office) was 5,604 up 16% from the 2000 Census estimate of 4,815 persons. The 2030 projected population for S1. Joseph as per the Mn. Demographer is 7,511 persons a 56% increase over Census 2000. The City is on pace to reach the projection at this time. A five mile trade area contains a population of over 12,000 as per 2000 Census Data updated by estimate increase in MSA as illustrated in th.e U.S. Census Annual Community Survey (ACS). The City of S1. Joseph and communities south and west of the City of S1. Joseph such as Cold Spring, Avon and Albany are continuing to experience.growth within residential sectors, although the pace of residential growth has somewhat slowed representative of the housing market slowdown that has swept across the nation. The Sf. Joseph population data and the five mile trade area include the College of St. B~nedict (within City of St. Joseph corporate limits) and the University of St. John's in Collegeville. The private liberal arts institutions' enrollments total over 3,900 students. City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 1 c. .Economic Snaoshot. FollowinQis a summary of some important findings about the local economy. The findings are discussed in detail later in this Chapter. Most economic indicators suggest St. Joseph and region are performing moderatflly well and sho.Lild continue to attract additional development if desired. 1. Growth in personal income when indexed over time within the St. Cloud MSA and Stearns County significarttlyexceeds the state averag.e and is much greater than the national average, indicating the area economy is performing well. 2. The rate of change in wages in St.Joseph when indexed over time is markedly lower than that within Stearns Courtty and the State as a whole. . 3. The rate of growth in employment positions within the City of St. Joseph when indexed over time has outpaced that within Stearns County and the State of Minnesota. 4; Job indices reveal: · Declines in the number of establishments in the following sectors: wholesale trade, professional business services and health care/social assistance. · Increases in the number of establishments in the following sectors (by rate of growth): leisure/hospItality, construction, manufacturing and professional/technical services. · Declines in the number of jobs in the following sectors: retail trade and health care/social assistance. · Increases in the number of jobs in the following sectors (by rate of growth): transportation/warehousing, professional technical services, education and manufacturing. 5. The State of Minnesota Department of Employment and Economic Development (DEED) projects employment growth to be fastest in the following three occupational sectors within Central Minnesota: · Computer and math-related fields including computer support specialists, computer software engineers, and systems analysts. · Community and social services fields including social workers and social/human services assistants. · Healthcare support fields including home health aides, nursing aides and attendants, medical assistants, and medical transcriptionists 6. The largest increase in the labor force is forecast to occur in the availability of laborers over the age of65. 7. The rate of growth in the labor force in /Stearns County/St. Cloud MSA when indexed over time is consistent with the state average but far greater than the national average. 8. When comparing specific industry sectors, a greater percentage of those living within one mile of the center of the City of St. Joseph (compared to those living within five and ten miles of the City) work within the following sectors: construction, transportation/warehousing and education. Conversely a lower percentage work within the following sectors: wholesale trade, retail trade, healthcare/social services and accommodations/food service. 9. When comparing specific industry sectors, more workers within one mile of the center of the City (compared to five and ten miles from the center) are employed in the following industry sectors: construction, wholesale trade, transportation/warehousing and accommodations/food service. City of S1. Joseph Comprehensive Plan, 2006 Chapter 11, Page 2 Conversely, there were fewer workers Within one mile of the center of St. Joseph (compared to five and ten miles of center) in the following industry sectors: manufacturing, retail trade, finance/insurance, professional/scientific/technical services, administration, educational services and healthcare/social assistance. 10.Mn. DEED finds a difficult, competitive market for Greater Minnesota jobseekers in the following occupations due primarily to slack hiring: advertising, marketing, PR, and sales managers; operations specialists managers; art and design workers; supervisors, building, grounds cleaning and maintenance workers; supervisors/sales workers; material recording, scheduling, dispatching and distributing workers; construction trade workers; electrical and. electronic equipment mechanics, installers and repairers; assemblers and fabricators; and, material moving workers. 11. Mn. DEED finds job opportunities (as per vacancy by industry) are greatest in the retail trade sector. 12. Historical unemployment data shows the unemployment rate in the St. Cloud MSA has typically been equal to or greater than the state average but consistently below the national average. 13. St. Joseph trails only Waite Park when compared to selected cities (Le. Sartell, Sauk Rapids, St. Augusta and Waite Park) for percentage of market value attributed to commercial/industrial development. 14.Population to employment ratio analysis indicates potential growth opportunities in the following industry sectors: retail trade, wholesale trade, manufacturing, professional business services and education/health services. Conversely, within the City at this time it appears supply exceeds demand in the following sectorS: accommodations/food service, construction, trade/transportation/utilities and leisure/hospitality. In addition, the data implies the City of St. Joseph is highly dependent upon food services/accommodations, trade/transportation/utilities and leisure and hospitality businesses. 15.Sales tax analysis indicates actual sales within Stearns County are greater than potential sales meaning the County has a retail trade surplus. The dollar value of this surplus (and pull factor) was $233,958,249 in 2004 (most recent data available). The pUll factor also means neighboring counties have fewer retailers that pose direct competition to businesses within Stearns County than vice-versa. 16.According to the National Building Cost Manual, published annually by Craftsman Books, construction costs in Minnesota in 2006 were two (2) percent above the national average, constructions costs in the St. Cloud MSA were three (3) percent above the national average and construction costs in the Minneapolis/St. Paul MSA were 14.5% above the national average. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 3 III. eOONOMIC TRENDS Economic trends can be important indicators as to the economic health of the community. Following is a . sumrnaryof several economic indicators including income/wages, labor force and commercial and industrial construction. A. ST. JOSEPH TRADE AREA: INCOME As stated above, the estimated population within a five..mile trade area for St. Joseph is 12,000. Income data within the trade area is an important consideration when building an economic profile and analyzing consumer choices within the. trade area. The Census 200.5 American Community Survey estimates income based on various geographic units including state, MSA and county. Table 11-1 illustrates the 2005 ACS profile for selected geographies. TABLE 11-1 2005 COMMUNITY SURVEY INCOME PROFILE: CPUNTY, STATE AND NATION Area Median Per Family Income Capita Income Stearns County $ 57,240 $ 23,699 St. Cloud MSA $ 57,966 $ 23,610 Minnesota $ 63,998 $ 27,248 United States $ 55,832 $ 25,035 Personal income trends provide a measure of economic activity. for a local area over time. When compared to state and national trends, it provides an indication of how well the local area's economy is performing. Personal income within the Stearns County and the St. Cloud MSA can be indexed to determine rate of growth over a period of time. In addition, the indices can be compared to state and national averages to determine whether personal income in a given geography is increasing more or less rapidly. Table 11-2 below illustrates personal income trends for the St. Cloud MSA. It is noted the indexed growth in personal income in the St. Cloud MSAand Stearns County significantly exceeds the state average and is much greater than the national average, The data indicates the area economy is performing well. TABLE 11~2 PERSONAL INCOME TRENDS: 1996 - 2004 1996 1997 1998 1999 2000 2001 2002 2003 2004 Stearns County 20,275 20,852 23,218 23,924 25,138 25,301 26.453 27,25fi 28,87 ( Index 130% 134% 149% 154% 161% 162% 170% 175% 185% St. Cloud MSA 20,198 20,803 23,131 23,876 25,108 25,546 26,489 27,195 28,770 Index 131% 135% 150% 155% 163% 166% 172% 177% 187% Minnesota 25,716 26,953 28,993 30,106 32,017 32,616 33,237 34,25€ 36,184 Index 129% 136% 146% 151% 161% 164% 167% 172% 182% U.S. (billions) 24,175 25,334 26,883 27,939 29;845 .30,57'1 30,810 31.4&4 33,050 Index 124% 130% 138% 143% 153% 157% 158% 162% 170% Source: u.s. Bureau of Economic Statistics City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 4 B. ST. JOSEPH EMPLOYMENT SeCTOR: 1. W~ges The emplqyment sector . of the Oity of S1. Joseph can be reviewed in terms of number of business establishments, number of employees and wages. A discussion of the City's employment sector differs markedly from that of the trade area and indexed income. Table 11-3 illustrates selected employment sector statistics for selected geographic areas. The City employment sector data is based on the most current data available at the time of the drafting of this chapter (second quarter 2006) from DEED. Table illustrates aver~ge hourly wages paid in S1. Joseph are higher than those for the other municipalities surveyed, however total annual wages are lower than those in other municipalities. TABLE 11..3 EMPLOYMENT SECTOR STATISTICS: LOCAL AND REGIONAL Population Average Aver~ge Number of Number of Quarterly Area (2005) Weekly Hourly Establishments Employees W~ges$ Wage W~ge millions St. Joseph 5,604 $ 607.00 $ 15:18 133 1,902 $ 15.00 Cold Spring 3,693 $ 547.00 $ 13.68 148 3,317 $ 23.66 Sattel! 13,225 $ 599.00 $ 14.98 211 3,520 $ 27.43 SaukRapids 12,470 $ 578.00 $ 14.45 367 6,271 $ 47.10 st. Augusta 2,950 Data not available Waite Park 6,775 $ 576.00 $ 14.40 403 7,357 $ 55.19 Steams County 142,684 $ 616.00 $ 15.40 4,636 79,703 $ 638.53 S1. Cloud MSA 173,000 $ 661.00 $ 16.53 2,211 51,973 $ 446.45 State ofMN. 5,205,091 $ 789.00 $ 19.73 172,845 2,695,025 $ 27,627.41 Wages paid within the City of S1. Joseph can be reviewed historically and indexed as a means of comparing the rate of change in wages within the City, Stearns County and the State of Minnesota. Table 11-4 illustrates the indexed rate of change in wages in S1. Joseph is markedly lower than that within Stearns County and the State as a Whole. TABLE 11-4 WAGE INDEX: 1996 -2006 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 St. Joseph Mthly Wages $442 $444 $468 $49.f $513 $529 $547 $54 $541 $58C $578 St. Joseph Hourlv Waae $11.05 $11.10 $11.70 $12.4E $12.83 $13.23 $13.68 $13.68 $13.5:l $14.5C $14.45 Index 100o/c 100% 106% 113% 116% 120% 124% 124% 122% 131% 131% Stearns Oounty Wkly W~ges $440 $457 $512 $50E $53C $54.f $57~ $589 $61~ $61" $635 Stearns Hourly Wage $11.00 $11.43 $12.8C $12.73 $13.2~ $13.7C $14.35 $14.73 $15.3~ $15.3C $15.88 Index 100% 104% 116% 116o/c 120% 125% 130% 134% 139% 139% 144% Minnesota Weekly W~ge $555 $58~ $617 ' $66i1 $681 $704 $720 $74~ $777 $78~ $82.f Minnesota Hourly Wage $13.8B $14.5~ $15.43 $16.6C $17.03 $17.6C $18.00 $18.55 $19.43 $19.62 $20.7C Index 1 00% 105% 111% 120% 123% 127% 130% 134% 140% 141% 149% Source: DEED City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 5 2. Existing El11ployment: An analysis of local employers provides insight into the types of larger businesses in the area that may providedraV\iing power. Existina Emplovment Profile The Minnesota Department of Employment and Economic Development (DEED) local employment data reveals a labor force within the St. Cloud MSA of 10.5,99'9 persons as of J.anuary 2007. During the same period an estimated 99,691 persons were employed resUlting in an unemployment rate of 5.9% above that of Rochester and Minneapoli.s MSA's but beloW that within the Duluth MSA. Historically unemployment rates within the St. Cloud MSA have mirrored state averages and. been below national averages. Most recent quarterly data (Second quarter, 2006) from the Minnesota Quarterly Census of Employment and Wages (QCEW) compiled by the.Department of Employment and Economic Development (DEED) illustrates 133 establishments within St. Joseph withemploymentopportunities for 1,900 persons and an annualpayroU of$15 million. The acew data reveals that 29 establishments (22%) are within the 'goods producing' domain and 104 establishments (78%) are within the 'service providing' domain. Of the 1,900 jobs available within Sf. Joseph 19% (367 jobs) are within the 'goods producing' domain and 81% (1,535 jobs) are within the 'service providing' domain. The 'goods producing' and 'service providing' domains are the broadest categories within the North AmeriCan Industry Classification System (NAtCS). The 'goods producing' domain is comprised of two supersectors .... manufacturing and a cluster including mining, natural resources and construction. Employment opportunities within the 'goods producing' domain are generally higher paying jobs. The 'service providing' domain is comprised of several supersectors: trade, transportation and utilities; information; financial activities; professional and business services; educational and health services; leisure and hospitality; other services; and government. The NAICS has been designed to more accurately capture the composition of an Inf,ormation Age economy in which a manufacturing-based labor market has transitioned into a services centered one. On average expansion of the commercial sector follows growth of the residential sector, however, this is . not the case in St. Joseph. St. Joseph has historically derived significant commercial development opportunities due to its proximity to Interstate 94. The ratio of commercial to residential land uSe when compared to similar cities is weighted toWard a higher percentage of commercial development. The vast majority of commercial development opportunities within' the City of St.Joseph are vehicular-oriented uses as opposed to pedestrian oriented uses. In general in the future, the City of St. Joseph may reasonably be expected to move toward a more typically ratio of residential to commercial growth. Industrial uses comprise approximately one and a half percent of all land uses within the City of St. Joseph, slightly lower than cities of similar size. It is noted this industrial land use calculation is based on tax classification and. not land use classification. This means several 'industrial' type land uses may carry a 'commercial' tax classification. Future demand for industrial land will likely be influenced by the St. Joseph Economic Development Authority's participation in land development, employment of financial incentives and business retention and recruitment efforts. Maior Emplovers The major employers in the City of St. Joseph are identified in Table 11..5 which follows. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 6 TABLE 11-5 MAJOR EMPLOYERS - ST. JOSEPH 2006 Emplover College of St. Bene,dict Convent of S1. Benedict W. Gohman Construction Fabral Scherer & Sons Trucking City of St. Joseph LaPlayette Bar & Restaurant St. Joseph Parish/School Source: City of S1. Joseph Product/Service Private College Monastery Nonresidential Construction Fabricated Structural Metal Trucking Service City Government Bar/Restaurant Church/Private School # of Emplovees 440 102 40 36 27 26 25 23 Historical Growth in Emplovment The historical growth in employment opportunities within the City of St. Joseph can be indexed and compared to that within Stearns County and the State of Minnesota. Table 11-6 reveals the indexed rate of growth in employment positions within the City of St. Joseph has outpaced that within Stearns County and the State of Minnesota. TABLE 11-6 JOB GROWTH INDEX: 1996 - 2006 1996 1997 1998 1999 20D~ 2001 200~ 2003 200~ 2005 2006 St. Joseph 93 103 104 107 114 118 125 126 126 132 135 Index 100% 111% 112% 115% 123% 127% 134% 135% 135% 142% 145% Stearns Count~ 3,662 3,777 3;839 3,919 3,980 3,999 4,036 4,161 .4,245 4,420 4,620 Index 100% 100% 102% 104% 105% 106% 107% 110% 112% 117% 122% Minnesota 141,863 147,411 149,871 152,500 156,086 156,322 156,785 158,459 160,548 166,261 173,064 Index 100% 104% 106% 107% 110% 110% 111% 112% 113% 117% 122% Source: DEED Further breaking out job growth by industry can assist the City in determining sectors that are performing well and may provide opportunities for additional spin-off, complimentary business development andlor economic development drawing power. Table 11-7 below illustrates job indices by number of establishments and number of jobs. The table compares the City of 51. Joseph to Stearns County and the State of Minnesota. 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""') c: c: c: c: ei5 CO <0 0 <0 r- eo 0> eo "<t C"') "'" <0 r- v <0 0 eo r- LO ::;;: - ~ ~ ~ M 10 r- 0> ~ ~ 0 cO cO cO Cii N (;:; M .0 ~ N C") .0 ~ ~ ..... ~ C3 E ::> Z C; 0 C; v 0 0 0 0 0 0 0 0 ~ 0 0 0 0 0 0 0 0 N N N N N N N N N 3. EnU11Q,y,ment FQrecast: A report issued. in M~y2005 by the Minnesota Department of Employment and. Economic Development indicates that. employment within Gentral Minnesota is expected to expand 20.8 percent between 2002 and 2012.. adding .an . estimated 55lIQOO jdpS over the ten year period bringing the area total to O\ler 320,000 jobs. The Central Minnesota area. is defined as B,enton county. Ohisago Co,unty, Isanti County, Kanabec county, Kandiyohi county, McLeod County, Meeker county, Mille Lacs County, Pine County, Renville County" Sherburne county, 'Stearns county, and Stearns County. Employment growth is projected to be fastest in three occupational sectors: . Computer and Math~Related fields. are expected to expand by 55 percent over the decade. GroWt:h..leading occupations will include computer support specialists, computer software engineers, and systems analysts. . Community and Social Services fields are expected to grow by 37 percent over the decade. The top gainers will include social workers and social and human services assistants. . Healthcare Sl,lpport fields are expected. to expand by 32 percent over the decade. The strongest performers will include home health aides, nursing aides and attendants, medical assistants, and medical transcriptionists. The Department of Employment and Economic Development (DEED) indicates that overall the future job market favors "knowledge" workers and service-producing job,s.Many farming..related occupations, production occupations and other' blue collar fields are expected to add a minimal number of jobs or decline. These Minnesota regional projections employ the same trend analysis used by the U.S. Department of Labor in national employment projections. Both nationally and in Minnesota, employment projections are widely used in educational program planning and career guidance. 4. Labor Force: Labor force data provide important information on the size and stability of a local economy. Size/ProiectedSize of Labor Force Employers with,in Sf. Joseph are likely drawing from an available labor force including Benton, Sherburne and Stearns Counties. The number of people available within Benton, Sherburne and Stearns counties labor force has been' steadily .increasing. oval' the past fifteen.(15) years. That trend, as indicated .in Table 11-8 is projected to continue through the year 2030 based on information from the Minnesota Department of Employment and Economic Development (DEED). It is further noted the largest increase in the labor force is forecast to occur in the a\lailability of laborers over the age of 65. TABLE 11-8 PROJECTED LABOR FORCE: SHERBURNE, BENTON AND STEARNS COUNTIES AREAlYEAR 2010 2015 2020 20.25 2030 Sherburne 50,050 55,690 59,970 63; 730 67,270 Stearns 87,550 91,280 93,950 96,890 100,460 Benton 22,920 23,790 24,280 24,530 24,790 T-otal 160,520 170,760 178,200 185,150 192,520 Source: Mn. Demographer's Office Rate of Growth onabor Force The rate growth within the labor force can be indexed over time and compared to state and national averages. Table 11-9 examines the rate of labor force growth from 1996 - 2004 for Stearns county, the Sf. Cloud MSA, the State of Minnesota and the nation. The data, when indexed over time, reveals the rate of growth in the labor force in Stearns County/Sf. Cloud MSA is consistent with the state average but far greater than the national average. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 10 TABLE 11..9 RATE OF LABOR FORCE GRaMM: 1996 -: 2004 1996 1997 1998 1999 2000 2001 2002 2003 2004 Stearns County 75,593 74,958 75,670 78,647 78,237 80,185 80,713 81,108 81,585 Index 11'5% 114% 115% 120% 119% 122% 123% 124% 124% St. Cloud MSA 95,571 94,874 95,835 99,794 98,805 101,606 102,579 103,301 104,079 Index 116% 115% 116% 121% 120% 123% 124% 125% 126% Minnesota 2,670,174 2,694,348 2,731,715 ~, 763,825 2,807,668 2,866,023 ~,895,535 ?,925,900 2,941,552 Index 112% 113% 114% 116% 117% 120% 121% 122% 123% U.S. (thousands' 133,943 136,297 137,673 139,368 142,583 143,734 144,863 146,510 147,401 Index 106% 108% 109% 111% 113% 114% 115% 116% 1170h Source; U.S. Bureau of Economic Statistics Commute Shed: Where Residents of the St. Joseph Area Work The U.S. Census Bureau reports selected employment data on a regular basis. The data allows the assembly of information related to commute and labor sheds. MDG conducted a search of data for the area included in the following figure. The concentric ring study areas compare data in -radii of one to five to ten miles as illustrated in Figure 11.1. Table 11-10 compares the places residents within one mile of the center of St. Joseph work as compared to those within five and ten miles of the City. Highlighted areas reveal sectors where those residing in the center of the City of St. Joseph differ from those residing further from the core of the City. Figure 11-1 Concentric Rings: 1,5 and 10 miles City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 11 TABLE 11",10 OOMMUTE SHED~ WHERE RESIDENTS OF ST. JOSEPH AREA WORK ONE, FIVE A'ND TEN MILEOO...OENTRIORINGS Resident Held Jobs QV Cat~gory 10 mile radius 5 mjJ~ radius One mile radius COUrit .Share Count Shar~ Count Share 6.11 iobs 52,288 10.0..0.% 9,0.7 100..0.% . 56i 10.0..0.% Allorillateseotor iobs 45,381 86:8% 8'O7~ 89.0.% 50.1 88.8% All otimarv iobS{worker'S hiahest payinQ job) 47,910. 91.6% 8,397 92.5% 521 92-4% AlIpfimarv .iobs, ofivate sector 41,558 79.5% 7,453 82.1% 460 81.6% . Baselin~ Count of Workers 10 mile radius 5 mile radius One mile radius count Share Count Share Count Share All primary ptivate.sector iobs 41 ,55~ 100.00/0 7,45~ 100.0% 4601 mo.ow< _en one rnile",dlus "'center"'St Joseph iS,compared to five and ten milE adius of st. Joseph. lWorkersby Aa~ 10 mile radius 5 mile radius One mile radius Count Share Count Share Courit Share lWorkers>QyEarriigQs Paid 10 mile radius 5 mile radius One mile radius o. "{$6.' < . '.>. . ,30. . . " '. "Yo More"ihari!$3;400/morith ..........> .....9,76123;'5%11'6281.. --:C.Z'li071>>n'1.alii.2~ii~~ I lWorker$ bY Industrv Tvpe-2 digit NAICS 10 mile radius 5 mile radius One mile radius C.ount Share Count Share Count Share ~Qriculture, forestry, fishinQ, hunting 13~ 0..3% 2E 0..3% ( 0..0.% Minim:! 4/ 0..1% 1L 0..2% 0. 0..0.% Utilities - electric, aas, telecom 19E 0..5% 3~ 0..4% 0. 0..0.% h'rclnsl)ort8tiori 'and warehousing '1'470 '3:5%/2513;'4'90 ~I .>i5:J19k Information 831 2.0.% 126 1.7% 1C 2.2% Finance and insurance 1.80.7 4.3% 291 3:9% 19 4,1% Real estate and rehtallleasina 52( 1.3% 9~ 1.2% E 1.7% ProfesSional, scientific and technical svcs 1 ,45] 3.5% 23f 3.2% 1L 3.0.% Mana~ement of companies and enterprises 538 1.3% 81 1.1% 9 2.0.% Admin. & support; waste marht & remediation 2,1~ 5.1% 372 5.0.% 26 5.7% City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 12 Census data from 2003 reveals the vast majarity .of jobs held are within the private sectar. When camparing thase living within .one mile .of the center .of S1.Jaseph ta thase living within five and ten miles, a larger percentage wark within Stearns and Sherburne Caunties and a lawer percentage wark within Hennepin Caunty. Of thase warking in Stearns Caunty, a larger percentage residing within .one mile .of the center.of S1. Jaseph (as campared ta thase within five and ten miles) wark within the City .of S1. Jaseph .or adjacent unincarparated areas than the City .of S1. Claud. When camparing specific industry sectars, a greater percentage .of thase living within .one mile .of the center .of the City .of S1. Jaseph (campa red ta thase living within five and ten miles .of the City) wark within the follawing sectars: canstructian, transpartation/warehausing and educatian. Canversely a lawer percentage wark within the follawing sectars: wholesale trade, retail trade, healthcare/sacial services and accammadations/faod service. Labar Shed: Where Emplavees warkina within the S1. Jaseph Area Live MDG alsa canducted a search .of labar shed data far the area included in Figure 11.1 as illustrated abave. The cancentric ring study areas compare data in radii .of .one ta five to ten miles. Table 11-11 campares the characteristics .of thase warking within the S1. Jaseph area including where they live, their age and their incame. Highlighted areas reveal sectars where thase residing in the center .of the City .of S1. Jaseph differ fram thase residing further fram the care .of the City. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 13 TABLE 11-11 LABQRS.f:;IED:WNEaE.6MPlI.i0V;SESUsIST. J;GsePiWAREA LIVE ONE, FIVE ANDTEN'MILE CONceNTRIC RING'S Resident Held Jobs b 10 n'lile radius Count Share 51,24 100,0% 5 n'lile radius Count Share 12,9.' 100.0% 5n'1i1eradius Count Share 5;07 39.1% 5,13 39.6% 2,77 21.4% 5 n'lile radius Count Share 1 0.1% 0.0% 0.0% .5;.0% City of St. Joseph Comprehensive Plan, 2006 One mile radius CO.unt Share 63 10.0.0.% 70 100.0% 68719'1:,;9% 651 91 ;8% 630 88.9% One mile radius Count Share 68 100.0% One mile radius Count Share 24 36.0% 30544.4% 135 19.7% One mile radius Count Share 1.2% 0.0% 0.0% '16;6% Chapter 11, Page 14 The labor shed data from the U. S. Census data reveals that there are more workers under the age of 34 working within one mile of-the center of St. Joseph as compared to those working within five and ten miles of the City. The data also reveals there are more workers within one mile of the center of the City (compared to five and ten miles from the center) in the following industry sectors: construction, wholesale trade, transportation/warehousing and accommodations/food service. Conversely, there were fewer workers within one mile of the center of St. Joseph (compared to five and ten miles of center) in the fallowing industry sectors: manufacturing, retail trade, finance/insurance, professional/scientific/technical services, administration, educational services and healthcare/social assistance. 5. Job Market Job/Skill Retrainina Opportunities DEED has identified eleven (11) occupations with significant challenges for re~mployment in greater Minnesota. As of the drafting of this chapter of the Comprehensive Plan, the data has not been subdivided for classification by DEED Economic Development or Planning Region. The information is included for consideration in potential job re...training programs subsequent to unemployment. The folloWing occupations have insured unemployment rates that exceed job vacancy rates by at least two percentage points. The difference suggests a difficult, competitive market for Greater Minnesota jobseekers in the following occupations due primarily to slack hiring: City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 15 Advertising, MarKeting,PR, and SalesManClgers Qperations Specialists Managers Art and Desigfl Workers $LlpemisGrs; Bui.ldil1g, GrOunds Cleaning and Maintenance Workers $ ypsrvisors , Sales VllorkerS Other Sales and Related Workers Material Recording; SChedllling, DispatChing and Distributing Workers Construction Trade Workers Electrical and Electronic Equipment Mechanics, Installers and Repairers · . Assemblers and Fabricators Material Moving Workers . . . . . . . . . . Job Opportunities (As per vacancy by industry) According to DEED, the industry with the most vacancies in the Central Planning Region in 2006 (second quarter) is. retail trade. At the same time the real estate industry had the highest job vacancy rate at 8.6 percent despite having the . largest decrease in vacancies over the year. Compared to. one year ago the manufacturing and educational services industries had the largest increase in vacancies. Table 11-12 illustrates the number of job vacancies, the job class vacancy rate and median wages for selected industries in the Central Planning Region. The information has been compiled by DEED. TABLE 11-12 . JOB VACANCIES AND MEDIAN WAGES BY INDUSTRY AND REGION, SECOND QUARTER 2006 State of Minnesota Central Planning Region Number Job Median Number Job Median Industry of Vacancy Wage of Vacancy Wage Vacancies Rate Vacancies Rate Accommodation 8,398 3,90% $6.50 855 4.00% $6.50 Administrative & Support 2,830 3.80% $10.00 212 3.30% $8.00 Agriculture 403 2.30% $10.00 143 3.90% $10,00 Arts and Entertainment 1,093 2.20% $8.00 240 3.9.0% $6.15 Construction 2,572 1.90% $12.00 233 1.40% $17.31 Educational Services 4,368 2.10% $17.36 465 2.10% $1.8.11 Finance & Insurance 3,184 2.30% $12.02 94 1.30% $15.63 Healthcare 9,330 2.50% $12.00 1,039 2.70% $9.71 Information 1,026 1.60% $15.00 43 1.10% $11.54 Management 1,208 2.00% . $13.00 24 2.40% $15.62 Manufacturing 7,684 2.20% $12.85 1,248 2.90% $12.00 Mining 71 1.30% $15.85 0 0.00% $0.00 Other Services 2,714 3.20% $9.00 230 2.90% $7.50 Prof., Scientific & Tech. Svs. 2,915 2.50% $21.63 46 0.90% $26,44 Public Admin 1,287 1.1 0% $14.58 84 0.70% $13.46 Real Estate 840 2.20% $9.00 188 8.60% $7.00 Retail Trade 8,064 2.70% $7.25 1,340 3.90% $7.25 Transportation & Warehousing 2,649 2.60% $16.83 123 1.50% $24.04 Utilities 104 0.80% $26.44 53 2.30% $33.00 Wholesale Trade 3,497 2.90% $14.42 451 4.80% $14.42 TOTAL 64,237 2.50% $10.00 7,111 2,80% $9.00 City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 16 6. Unemployment Accerding to the most current data available at the time of the drafting of this chapter, the Minnesota Department of Employment and Economic DevelOpment estimates 105,996 people in the labor force in the St. Cloud MSA in January, 2007, 'with 99,691 employed, resulting in a 5.9% unemployment rate. During this same time period Minnesota had an unemployment rate of 5.4% and the United States unemployment rate was 5.0%. Table 11-13 provides historical labor force statistics. TABLE 11.,13 ST. CLOUD MSA - UNEMPLOYMENT RATES Year Labor Force Employment Rate MN US 2006 105,408 101,114 4.1% 4.0% 4.6% 2005 .105,119 100,621 4.3% 4.1% 5.1% 2004 104,079 99,332 4.6% 4.6% 5.6% 2003 103,301 98,336 4.8% 4.8% 6,0% 2002 102,579 97,939 4.5% 4.5% 5.8% 2001 101 ;606 97,582 4.0% 3.8% 4.7% 2000 98,805 95,680 3.2% 3.1% 4.0% 1999 99,794 96,844 3.0% 2.8% 4.2% 1'998 95,835 92,768 3.2% 2.7% 4.5% 1'997 94,874 90,924 4.2% 3.3% 4.9% 1996 95,571 90,873 4.9% 3.9% 5.4% 19.95 9.3,707 89,795 4.2% 3.7% 5.6% Source: Minnesota Workforce Center Historical data contained in the table above reveals the unemployment rate in the St. Cloud MSA has typically been equal to or greater than the state average but consistently below the national average. C. COMMERCIAL/INDUSTRIAL TAX BASE Over the past several years. St. Joseph's tax base has consisted of approximately 68% residential (single and multiple-family) assessed market value and 16.5% commercial/industrial assessed market value. The following table compares the assessed values for reSidential and commercial/industrial properties within several cities in Stearns County. St. Joseph trails only Waite Park when compared to selected cities for percentage of market value attributed to commercial/industrial development. TABLE 11-14 ASSESSED MARKET VALUES PAYABLE 2006 Area Commercial Percenl Residential Percent Othel Percent Total City Tall Commercial Residential Othel Rate Sartell $118,108,80( 13.92% $608,579.000 71.73% $121,684.387 14.34% 848,372,187 30.2E Sauk Rapids $92,324,16/ 14.24% $457,597,600 70.60% $98,224,09C 15.15% 648,145,857 41.25 St. Aqausta $15,515,133 6.70% $159,746,20( 68.99% $56,272,40~ 24.30% 231,533,735 19.25 St. Josellh $38,430,467 16A6% $158,778,600 68.00% $36,277,467 15.54% $233,486,534 48.5S Iwaite Park $289,455,60C 48.41 % $197.070.640 32.96% ~111 ,416,578 18.63% $597.942,818 51.1 Source: MnPRO City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 17 D. EC:ONQMICANALYSIS: PopulationtEmolovment Ratio A commGlnmeasure usee! to assess an area!g performance in capturing local markets as well as establishing the area's relative level. of dependenoe on a particular industry is the population/employment ratio. The P:E ratio is the amount of persons a single employee serves within a given geographic area and .agiven employment sector. Population serve.sas a surrogate . for regional demand. for a particular industry and emPloyment measures the region's ability tosupP!y the industry's product producing a simple measure' of area supply and demand. In this case if the P:Eratio for a given industry in. S1. Joseph is equal totheMinnesota average demand is relatively equal to supply and the local establishments are capturing local markets. On. the other hand, if the local PrE ratio is larger than the State average demand is likely greater than supply and the O.ity is not capturing local markets, meaning expansion potential may be present. Conversely, if the PIE ratio in St Joseph is less than the State average, demand is less than supply and the City is not only capturing local demand but is importing demand for other areas within the County. Table 11-15 illustrates PIE ratios fOr selected industry sectors for the City of S1. JOSeph compared to adjacent communities. TABLE 11-15 POPULATION TO EMPLOYMENT RATIO: ST. JOSEPH COMPARED TO MN. AVERAGE The smaller the PE ratio the more dependent the area is on that industry sector The larger the PE ratio the less dependent the area is on that industry sector Source: Bureau of Labor Statistics and DEED PIE ratio analysis indicates potential growth opportunities in the following industry sectors: retail trade, wholesale trade, manufacturing, professional business services and education/health services. Conversely, within the City at this time it appears supply exceeds demand in the following sectors: accommodations/food service, construction, trade/transportation/utilities and leisure/hospitality. In addition, the data implies the City of St. Joseph is highly dependent upon food services/accommodations, trade/transportation/utilities and leisure and hospitality businesses. Sales Tax Trends Understanding economic development trends demands analysis of the existing retail matket's strengths and weaknesses. Understanding the performance of the local retail market can help the City foster a more conducive environment for retail business development. One of the best sources of data regarding retail market strengths/weaknesses is drawn from sales tax receipts. Table 11-16 below illustrates sales tax trend analysis for Stearns County (smallest geographic area with reportable data). City of 51. Joseph Comprehensive Plan, 2006 Chapter 11, Page 18 Sales tax trend analysis reveals that each Minnesotan spends an average of $11, 722 per year on retail purchases. To determine the local trade area captured (Le. Stearns County) total taxable sales within the County are divided by the average ($11, 722) dollars~penton retail purchases following an adjustment refleoting the ratio ,of theperc~pita income within Stearns County as compared to the state averc~ge (Le. 0.80). The trade area captured is expressed in terms of the number of customers serviced in a particular county Which in this case is 165,790. A "pull factot" is a method of measuring of the relative strength of the County's retail market. Pull factors compare the trade area captured to the actual population within the County. Pull factors greater than one (Le. 1.18 ilJ Stearns County) result from drawing in tourists or customers from surrounding counties. Potential sales analysis provides an estimate of retail sales the County (Le. Stearns) should achieve if it were performing on par With the statewide adjusted per capita retail expenditure. The potential sales data can then be compared to the trade area captured to determine the estimated surplus (or leakage) in retail sales within the County. Actual sales within Stearns County are greater than potential sales meaning the County has a retail trade surplus. The dollar value of this surplus (and pull factor) was $233,958,249 in 2004 (most recent data available). Th.e pull factor also means neighboring counties have fewer retailers that pose direct competition to businesses within Stearns County than vice-versa. TABLE 11-16 SALES TAX TRENDS: STEARNS COUNTY Estimate. state Per C~tJita EXfJenditures (2004) State per capita expenditure $ 60,309,5:41,847 Pooulation 5,145,106 Per Capita Expenditures $ 11,722 I'ndex of Income Stearns Co. per capita income $ 28,877 State per caoita income $ 36,184 Index of Income 0.80 Tracie Area Captured axable sales.: Stearns County $ 1,554,708,811 State per capita sales $ 11,722 Index of income 0.80 Trade area captured 165,790 Pull Factor Irrade Area Captured 165,790 County PooUlation 140,841 Pull Factor 1.18 Potential Sales State per capita sales $ 11 ,722 County pooulation 140,841 Index of income 0.80 Potential Sales $ 1,320,750,5'62 Sumlus or (Leakaae) Actual sales $ 1,554,708,811 Potential sales $ 1,320,750,562 Surplus or (leakage) $ 233,958,249 Source: Mn. Department of Revenue City of 81. Joseph Comprehensive Plan, 2006 Chapter .11, Page 19 Traffic RatternsandBuildinaActivity Street and htghw~y traffic patterns provide indications of the movement (jf people to and through the City. M~Joractivity generators inClude industries, the C(jll~g~, medical facilities and schools. Retailers typically seek locafions")fmajorarterJ~s and often require minimum averl!!geaciUycQunts to survive. BusiAesses like oonvenience stares, gas stations, fast food restaurants and theHkear~ likely to. require large amounts of traffic and accesslvisibility from high traffic streets. While high traffic counts are desirabl~, ~xtreme traffic congestion can b~ a deterrent to Shoppers.. High traffic may hinder visibility, parking and pedestrian friendliness. Table 11-17 illustrates current traffic counts at various points within the city of S1. Joseph and forecast traffic counts included in the City's 20.07 Transportation Plan. The forecast counts are based on full build . out of the City and annexation areas as illustrated in the fUture land use map contained in the 2.0.02 Comprehensive Plan. TAB,LE 11..17 CURRENT AND PROJECTED TRAFFIC VOLUMES -MAJOR ROADWAYS Area c.urrel'lt Count Projected Count 1-94 east CSAH 2 25,.0.0.0 33953* 1-94 west of eSAH 2 21,8.00 43738* eSAH 75 at 20th Ave Not available 38.3.0.0 eSAr! 75 ateR 133 Not available 32,0.0.0 CgAH 75 at 4th Ave N,ot available 3.0,1.0.0 egAH 75 at Dolleee 22,5.00 25,8.0.0 agAH 75 at aSAH 3 15,1.00 27.8.0.0 CgAH 75 west of CSAH 3 12,3.0.0 25.7.0.0 Minne,sota 8t& COllege 5,6.0.0 9,0.0.0 Mn. street & eSAH 3 Not available 16,7.0.0 eSAH 2 southwest of eSAH 3 8.80.0 26,9.0.0 CSAH 2 southwest of 1-94 4,25.0 23,5.0.0 *St. Cloud APO 2030 projection employed Trends in real estate deVelopment including housing construction provide another indicator of . the economic health of the S1. Joseph economy. An expanding housing sector compliments commercial developmer1. Table 11-18 illustrates new housing permits (number and aggregate value) issued by the City of S1. Joseph annually since 2.00.0. TABLE 11-18 ST. JOSEPH - NEW HOME PERMITS Period Number Value 2006 through November 80 $11,1.05,754 2005 156 $18,557,353 2004 78 $10,379,849 2003 1.08 $13,509,459 2002 58 $7,052,94.0 2001 54 $6,04.0,50.0 2000 23 $2,361 ,12.0 City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 20 IV. CONSTRUCTION COSTS. Development Costs Costs of aevelQpmentfredevelQpmerit within the City are important considerations when conducting economic develqpment activities. Construction cost analysis can give City leaders a framework to reference when contemp.lating changes in zoning standards and/or financial incentive program design and implementation. This portion of the Economic Development Plan is intended to give the City/EDA an idea of the potential costs of development within St. Joseph. Building quality is the most significant variable in the finished cost. Other factors affecting construction costs include the building shape/outline, building area (Le. larger buildings cost less per square foot than smaller buildings), differences .in typical wall heights and common ownership (common walls, ownership on first floor 'lis. second story affect cost). Building costs also vary by location. According to the National Building Cost Manual, published annually by Craftsman Books, construction costs in Minnesota in 2006 were two (2) percent above the national average; constructions costs in the St. Cloud MSA were three (3) percent above the national average and construction costs in the Minneap6lis/St. Paul MSA were 14.5% above the national average. The information above doesn't include the costs of land acquisition and development fees. It is noted redevelopment is more costly than new development due to higher acquisition costs and more intensive site preparation work, The City of St. Joseph has instituted development fees applicable to drinking water, storm water and sanitary sewer. The fees are based on the degree of use of municipal systems generated by the proposed development. Actual Construction Costs.... St. Joseph (ESTIMATE) Table 11-19 illustrates simplified construction cost estimates based on the type of development, average square footage for that type of development in St. Joseph, construction type and quality. The table is provided to give the City/EDA a general idea of the cost for different types of development. TABLE 11-19 SIMPLIFIED CONSTRUCTION COST ESTIMATES: T. JOSEPH DevelODment TVDe SF/first floor Construction Type Lowest Quality/SF Highest Quality/SF Cost Range Urban Store* 3,000 Masonry/Concrete $74.46 $144.84 $223,380 $434,520 Urban Store* 3,000 WoodlWood - Steel $57.12 $109.14 $171,360 $327,420 Suburban Store** 3,000 Masonry/Concrete $68.34 $142.80 $205,020 $428,400 (Shell only) Suburban Store** 3,000 WoodlWood - Steel $55.08 $104.04 $165,240 $312,120 (Shell only) Suburban Store 3,000 Masonry/Concrete $94.86 $175.44 $284,580 $526,320 Multiple Tenant'" Suburban Store 3,000 WoodlWood - Steel $77.52 $201.96 $232,560 $605,880 Multiple Tenant*** Supermarket 5,000 Masonry/Concrete $79.56 $136.68 $397,800 $683,400 Sup.ermarket 5,000 WoodlWood - Steel $76.50 $130.56 $382,500 $652,800 Small Food Store 3,000 Masonry/Concrete $73.44 $111.18 $220,320 $333,540 City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 21 Develoument Type SFffirstfloor Construction Type Lowest QualityfSF HjghestQualiWfSF Cost Range Small Food Store 3,000 WoodlWood - Steel $64.26 $106.08 $192,780 $318,240 DiscountStore 30,000 Masonry/Concrete $54.06 $83.64 $1 ,621 ,800 $2,509,200 Discount Store 30,000 WoodlWood - Sleel $56.10 $85.68 $1,683,000 $2,570,400 Banks/Finance 3,000 Masonry/Concrete $187.68 $346.80 $563,040 $1,040,400 Institutions**** BankS/Finance 3,000 W0odIWood . Steel $176.46 $344.76 $529,380 $1,034,280 InStitutions**** Department Stores 30,000 Reinforced Concrete $118.32 $183.60 $3,549,600 $5,508,000 Department Stores - 30,000 Masonry/Concrete $66.30 $137.70 $1,989,000 $4,131,000 Department Stores 30,000 WoodlWood . Steel $68.34 $143.82 $2,050,200 $4,314,600 General Office Bldg. 3,000 Masonry/Concrete $88.74 $187.68 $266,220 $563,040 - Exterior Entry**** General Office Bldg. 3,000 WoodlWood - Steel $80.58 $172.38 $241,740 $517,140 - Exterior Entry**** MedicallDenlal Office . Exterior 3,000 Masonry/Concrete $129.54 $220.32 $388,620 $660,960 EhlrY**** Medical/Dental Office- Exterior 3,000 WoodlWood - Steel $125.46 $207.06 $376,380 $621,180 EntrY**** Industrial 10,000 Concrete $47.94 $78.54 $479,400 $785,400 Warehouse***** Engineered Steel 10,000 Rigid Steel $24.48 $29.58 $244,800 $295,800 Industrial Bldg***** Agricultural Building 10,000 Non-arch. Sleel $11.22 $21.42 $112,200 $214,200 · Construction within developed area (i.e. downtown) cost may be higher due to constraints of site .. Construction within open areas where modem construction techniques, equipment and economic designs may be employed ... Construction costs include suburban shell plus cost of display fronts, finish materials and interior partions .... Construction costs vary widely by length of building, longer the length, higher the cost ..... Shell only City of 51. Joseph Comprehensive Plan, 2006 Chapter 11, Page 22 V. FINANCIAL INCENTIVES AVAILABLE: ST. JOSEPH The following incentives may be offered to qualified applicants within the City of St. Joseph/St. Joseph EDA. Tax Increment Financinq Tax increment financing is a tool, which allows the City/EDA to reimburse the company or land owner a portion of the new property taxes, which are generated as a result of an expansi.on project. The amount of financial assistance available (TIF) is dependent upon a number of factors including but not limited to the assessed market value of the building and the financial need of the company. Tax Abatement Like TIF, tax abatement is a tool, which allows the City/EDA to reimburse the company a portion of property taxes; which are generated within a specified period of time. The difference between TIF and tax abatement is that with tax abatement the County and/or school district have an option to participate (with TI F participation is mandatory). The amount of the tax abatement available depends on a number of factors, including, but not limited to the financial need ofthe company and participation by County and school entitieS. The term of tax abatement is up to twenty years depending on a number of variables. Revolvinq Loan Fund The revolving loartfund, established in 2002 through principal and interest payments from a MIF grant/loan have been building the fund, which has a current balance of approximately $48,000. The RLF must be used to promote job creation/retention. Minnesota Community Caoital Foundation The City of St. Joseph/EDA has access to the Minnesota Community Capital Foundation (MCCF) through Stearns Electric and Great River Energy. An MCCF loan may be available to qualified projects for a variety of uses (including working capital) on reoccurring basis. Business Architectural Facade Grant Proqram The EDA/City are working to establish a pilot grant program designed to encourage facade improvements for exiSting commercial eStablishments. The grant program would help offset architectural/design services related to facade and/or landscaping improvements which are visible from public rights-of-way. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 23 VI. BUSINESS INPUT ON EOONOMIC DEVELOPMENT In the Fall of 2.006 the $1. Joseph EDA conducted a business retention and expansion survey. All of the approximately 100 business owners within thecQrnmunity Were invited to p.artioipate in the suh1ey and sUbsequent review process. Those completing the survey and/or personal interview. expressed the following; · 73% noted sales have increased in the past three years. · 87% of those responding indicate they expect their businesses to grow within the next three years. · 70% of those businesses responding noted they have considered expansion within S1. Joseph · When asked about deterrents to expansion respondents noted: increased property taxes were deterring expansion along With a feeling the costs of expansion outweigh the potential benefits and a feeling the current business size was adeqUate. · When asked to rate the importance of the aPpearance of their building those responding replied: 27% 'very important'; 36% 'important' and 36% 'not very important'. In addition, a community~widesurvey conducted in 2002 noted: · Location, proximity to 1-94 and geographical location between Twin Cities and S1. Cloud metropolitan areas were identified as positive attributes of doing business in S1. Joseph:. · Lack of water treatment capacity, tenSe relationships between businesSes and City government and a need to expand residential sector were identified as economic development opportunities facing St. Joseph. It is noted a new water treatment plant is about to be placed into service. · The following were identified as businesses or services which would be a welcome addition to the community: . DiScount stores . Restaurants . Entertainment . Bowling · Community center . Department store . Coffee shop . Fitness center . . Industrial establishments · Respondents suggested commercial and industrial establishments should/could be developed in the following areas: RESPONSE Next to 1-94 Downtown On CSAH 75 South of 1..94 CSAH 2 TOTAL PEROENT 40% 31% 19% 6% 4% 100% City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 24 VII. TEOHNo.LOGY High s-p.eed internet access is available within the City of 51. Joseph and in most commercial areas; The City recently extended fiber to the Public Works facility Within the industrial park. Access to high..$peed data transmission lines is therefore now available to the industrial park and the Buettner Business Park. VIII. COMMERCIAL DISTRICTS It is essential that the community understands the importance of commercial areas and the overall impact each has on the community as a whole. The city1s zoning ordinance classifies commercial areas as B-1 Central Business District, B~2 Highway 75 Business District and B-3 General Business District. The Future Land Use Map. contained in the Comprehensive Plan guides areas within the downtown to continued pedestrian.,oriented development, areas adJacent to CSAH 75 as highway business and areas adjacent to proposed collector/arterial street corridors as B-3 general business. The most recent Future Land Use map is attached to the close of thi~ chapter. Following is additional information and goals relating to development within the various commercial districts. A. ST. JOSEPH COMMERCIAL ZONES 1. B..1 Central Business District. District Purpose The Central Business District has been established to encourage the continuation of a viable downtown by promoting uses dependent of high volumes of pedestrian traffic; to provide for regulation of the high intensity commercial uses located within the original core of the City; and, to encourage parks/greenspace in the downtown. The Central Business District provides space for concentrated general business and commercial activities at locations where they are easily accessible to residential areas and, at the same time, minimizing negative impacts to residential neighborhoods. Historic SiQnificance In November of 2006 the EDA inforrnally consulted an expert historical consultant from Landscape Research, Inc. regarding the historical significance of Downtown St. Joseph. The historical consultant noted the following regarding Downtown St. Joseph: · An opportunity exists to perform exemplary planning that will keep the architectural and spatial relationships among Minnesota Street and the convent and college grounds intact. · Planning involvement would be greatly enhanced by design guidelines that address the character of new development and also support rehabilitation and restoration of the existing ,buildings. · Understanding the simple original character of existing buildings may be part of the challenge. . . but that block of Minnesota Street [I.e. between 151 Avenue NW and College Avenue] is like one big "advertising sign" for St. Joseph and the community's understanding of its core, which includes one. National Register building (the bank) and faces a. very large district (including the church, rectory, convent, and college buildings). . . despite the loss of the John Linnemann house and most ofthe facades, the bUildings are remarkably intact. The 18.98 plat map, and excellent collection of air photos from ca. 1928-1970 supports this. Stearns County has received national attention from scholars studying German-American settlement patterns including what some term "hamlets," and St. Joseph is still one place you can go to actually see these relationships. City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 25 . New develQpment needs to be shapedQY guidelines thatkE:)E:)p the historiC grid intact,. provide needed density, and also encourage the use of sympathetic scale, materiats, openings, and details Downtown Revitalization Plan In April of. 2006 the. EDA received a notification/recommendation from a Downtown Committee (task forc.e)., The notiCE:) recommended the EDA/Council proceed with. a reVitalization effort with the knoWledgE:) and undE:)rstanding that while the City may convene the process., it must quickly be led by the private entities whose time and money will ultimately determinE:) thE:) effort's success. ThE:) Downtown Committee concluded that a healthy, sustained partnership iscruciaUo getting the reVitalization process off the ground and bLiilding the critical. mass needed to spur a cycle of sustainable development over a period of several. years, The geographical area currently defined as !downtown' is illustrated on the map at the close of this Chapter. The EDA embraced the Downtown Committee (task force) recommendation and forwarded the recommendation to the City Council for review/consideration. The Council approved the revitalization plan and authorized/directed formationofthe four workgroups and commencement dUne effort. Following is a summary of the goals/tasks associated with each work group: Organizational Work Group Establi.sh arid continue to strengthen open/active partnerships between regional stakeholder$, busines$ oWners,resident$, property owners, the Chamber of Commerce, service providers, government entities, the College and the Monastery. Manage and enco.urage continuous and active discussion and sharing of knowledge between stakeholders in the revitalization process. Tasks associated with implementation of strategic plan: 1. Promote and expand involvement of citizens, businesses and organizations in Downtown revitalization by establishing effective relationships: a. Find those who are well.,connected in the community - listen to What they have to say about project, build rapport, build support, bLiild relationships. b. Find leaders of social networks within the community - listen to what they have to say about the project, build rapport, build support, build relationshipS. c. Find those connected to resources in the community - liSten to what they have to say about the project, build rapport, build support, build relationships. 2. Provide advice to adjust project as needed. 3. Keep opinion.,makers and others informed about the revitalization process through one on one meetings, discussions, forums, etc. 4. Create plans which help ensure the success of the downtown revitalization effort by promoting private/public partnerships - not the other way around. a. Identify impediments to collaboration and cooperation. b. Build bridges. c. Get social leaders, economic leaders, political leaders together and interacting in support of revitalization. d. Buiid lasting ties and opportunities for interaction. 5. Determine how work groups, property owners, residents, CIVIC and non-profit entities, elected/appointed city leaders and others interact to achieve continued and sustained synergy in revitalization efforts. City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 26 a. Listen b. Network c. Build bridges 6. \Nork with the Promotions \Nork Group to create "road map" to. strengthen the link between the ColIE!ge of S1. Benedict, S1. Benedicfs Monastery, downtown property owners, adjacent residents, the public at largE! and City officials and provide measurable opportunities for abstract and physical interaction between the aforementioned entities. a. Provide continuous opportunity for real interaction b. Listen 7. \Nork with Urban Environs \Nork Group., private/non~profit entities that own property or operate businesses to specifically identify land/buildings that could be available for early development and/or redevelopment. a. Identify a project b. Make it happen 8. Assist Resource Development \Nork Group in the formation of new organizations to achieve goals (e.g. downtown merchant's association, community foundation). Promotions Work Grol1P Create/enhance opportunities to bring visitors/tourists to the City of St. Joseph and to capitalize on activities and/or events already occurring within the community. Maximize private investment and public ownership of the revitalization process. Tasks associated with implementation of strategic plan: 1. Put a face on the revitalization effort. a. Know what you want to say - keep it simple. b. Get the word out, keep getting the word out, keep getting the word out, repeat 2. Reposition the image of downtown', revitalization from neutral or negative to a positive, constructive albeit long-term process. a. Get the word out about positive steps b. Reward investment in the project 3. Create a plan and work with downtown property/business owners to promote unity and cohesiveness as a means of having the downtown property/business owners take ownership of not only their individual property but the entire 'downtown experience'. \Nork with downtown property owners/downtown merchants to jointly plan special events so as to move from simply co- existing to forming a cohesive, unified force working together to achieve mutual goals. Get downtown merchants together to jointly plan/market business activities, sales and events. 4. Establish and promote community-wide events and activities which bring visitors and tourists to the City. \Nork to schedule and coordinate events that bring people into the community. 5. \Nork with other event planners/holders within the community (e.g. College of S1. Benedict; S1. Benedict's Monastery, S1. Cloud Independent School District, Downtown Association, etc.) to coordinate events on an area wide basis, such as a downtown art crawl corresponding to a cultural activity on the college campus. Keep those in town for special events in town a little longer by coordinating ancillary events (tell people going to a performance at the College what City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 27 their options are forentertainmentleating afterward; tell those offering entertainment/eating options that an event is scheduled help them jointly market coordinated response) Urban Environs Work Group Create a pedestrian-friendly place of destination. Tasks associated with implementation of strategic plan: 1. Determine specifically what the. urban environment and associated character should lo.ok like with advice from urban landscape architect or other credible entity. 2. Develop design criteria such as traditional color palettes, awning styles, uniform signage types/styles, uniform lighting styles, uniform building styles, roof lines, exterior building materials, window styles, entryway styles, etc. 3. Determine what the Ultimate size for downtown might be, list boundaries by streets; define the core. 4. Determine what types of facilities will 'anchor' the downtown, such as: park, school, government, office, Post Office, banks, etc. 5. Determine what building style is desired ~ noUhat each building is the same as the next, but what are specific architectural elements that will define downtown structures such as: a. Rooflines. b. Windows: size, position, style, awnings. c. Entryways. d. Color palette. e. Exterior building materials. f. Signs. g. Facility Lighting. 6. Determine what streets and Sidewalks might look like. a. Where do people drive b. Where do people walk c. Where do people gather d. Where do people sit e. What makes people want to linger, to talk, to explore 7. Determine how to best convey that vision to developers, business owners and city planners. 8. Think about how the 'downtown experience' for pedestrians that will be different depending on the time of day, the day of the week, or the season of the year - even if a pedestrian is traveling along a well trod path; how can we provide opportunities for new experiences nearly every time a pedestrian takes to the streets. 9. Determine how high density housing fits into the downtown. Resource Development Work Group Identify the overall financial needs associated with downtown revitalization (from improving public facilities/amenities to assisting private sector in leveraging funds to capitalizing activities of downtown revitalization work groups) and develop a fundraising plan that supports the revitalization effort. City of S1. Joseph Comprehensive Plan, 2006 Chapter 1 1, Page 28 Tasks associated with implementation of strat(:lgic plan: 1. Identify community initiative grants available throLlghn.on..profit and state-wide programs far whidh the St. Joseph D.ownt.own Revitalizati.on initiative will qualify. 2. Identify l.ocaJ partners interested in c.ontributing financially t.o d.ownt.own revitalizati.on and devel.op a plan that will enable l.ocal c.ontribut.ors to w.ork tagether ta ensure .optimal benefit fram lacal cantributi.ons. 3. Determine patential s.ources .of public investment (e.g. tax increment financing, tax abatement, Small Cities Develapment Program, law interest loan payments, revalving laan fund, revitalizatian zane, etc.) 4. Plan, promote and cenduct a variety .of fund raisers as a means .of capitalizing streetscape amenities and public realm enhancements like street furniture, urban park, t.own square, landscaping, water feature, banners,etc. 5. Research app.ortunities ta pr.omate structured parking facilities within the dawntawn (e.g. fee in- lieu .of parking praceeds used ta establish public parking). 2. B-2, Highway 75 Business District District Purp.ose. The Highway 75 Business District is intended ta cantral the use and develapment .of land and impravements by creating a mixed land use district near and adjacent ta the Caunty State Aid Highway 75 corridor -in the City- .of S1. Jaseph by allawing for a mixture .of land uses and by establishing stringent standards far develapment. The district is intended ta encaurage and pram.ote high-value development in a manner similar t.o a planned unit develapment, taking full advantage .of the City's highway lacatian resulting in a pleasant, attractive and aesthetically pleasing environment. CSAH 75 Renewal During 2006 the EDA began ta campile infarmatian regarding currentzaning and existing land use in the CSAH 75 carridar in the vicinity .of Callege Avenue. The EDA reviewed the informatian sa as ta discuss the future .of the c.orrid.or in terms .of land use, patential far redevelapment and urban aesthetics. The EDA examined un,ique challenges/app.ortunities presented ta develapment/redevelapment prajects in .the carridar. Amang items discussed were: (1) level .of financial assistance .offered ta establishments canducting redevelapment effarts .of a sizable scale (2) participatian by the EDA in master planning the carridar and (3)participatien by EDA in securing first right of refusals for individual praperties as a means .of assisting with the cambining .of smaller l.ots into one larger let mere canducive ta commercial development. Fallewing the preliminary discussion a technical inventary .of parcels adjacent ta CSAH 75 between Secand Avenue NW and Third Avenue NE was campiled. The technical inventary included: (1) a map depicting the subject area, (2) a spreadsheet cantaining pertinent infermatien regarding parcels in the subject area and (3) a pict.orial directary .of praperties within the subject area. The technical/pictarial inventary was useful in c.omparing devel.opments within the carridar and analyzing cerrid.or attributes and appartunities. The EDA has defined attributes and challenges within the corridar as fall .ow: Attributes · Canditien .of readway. · Traffic mability (atthis point) appears ta be sufficient. · Goed visibility from principal arterial - desirable for highway cammercial use. City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 29 Ohallenges · The pictorial inventory reinforces the perception of development within the corridor as hElfDhazard. · Comrnercial uses interspersed with residential uses. · Infill opportunities are not.-unified. · Parc.e.ls vary greatly in size. .. Lack of continuous front~gelbackclge roads offering access to commercial development. · Aesthetics: inconsistent architectural styles, wide variety of building construction types/materials employed, non-uniform setbacks and limited landscaping. The EDAhas embraced the conc~pt of promoting redevelopment within the identified corridor as a priority. This project remains active at this time. 3. B-3 General Business District District Purl1lose , The General Business District provides space for specialized business and commercial activities at locations where they are easily accessible toresidential areas and, at the same time, minimizing negative impacts to residential neighborhoods. The intent of the B-3 district is to create attractive commercial and business activities through standards including, but not limited to, larger lot sizes,greenspace and landscaping requirements. The Future Land Use map guide.s areas inclose proximity to the intersection of 1-94 and CSAH 2 for development of future vehicular oriented commercial nodes. x. INDUSTRIAL DEVELOPMENT In addition to commercial development, it is also essential that the community understands the importance industrial development and the overall impact such. development has. on the community as a 'whole. The city's zoning ordinance classifies industrial area as 1-1 "Light Industrial" or 1'-2 "General Industrial" . District Purpose The Light Industrial District provides space for industrial activities involving a minimum degree of refuse byproducts and air or noise pollution and requiring a relatively low level of on-premise processing. Activities within the 1-1 district may include secondary commercial functions which are conducted on site. The Future Land Use map guides areas in close proximity to existing industrial development and in close proximity to the intersection of 1-94 and CSAH 2 for future industrial development. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 30 XI. ECONOMIC D.EVELOPMENT PLAN A. Core Initiatives and Strategic. Directions 1. Promote commercial developments that maXImize the return on City investments in public facilities and services, expand the tax base, provide quality employment opportunities and complement existing services. 2. Promote industrial developments that maximize the return on City investments in public facilities and services, expand the tax base, provide quality employment opportunities and complement existing services. 3. Retain existing commercial/industrial uses and encourage new commercial/industrial development to locate in existing commercial/industrial parks and commerciallindustrial zoned areas. 4. Proactivelyand consistently promote downtown revitalization activities. 5. Promote efforts to achieve commercial renewal/redevelopment in previously developed areas within the highway commercial district. 6. Provide appropriate, professional information to development leads in a timely fashion. 7. Administer financial incentive programs offered by the City/EDA. 8. Promote the exchange of information between the business community and the City of St. Joseph. B. Strategies for Development and Redevelopment. Central Business District 1. The. EDA should continue to promote rehabilitation of substandard properties and/or preservation of structures for rehabilitation in the Downtown. Uses should be centered on activities dependent on pedestrian traffic. . ~ Implementation: St. Joseph Economic Development Authority. 2. The EDA should gauge business interest in participating in a commercial rehabilitation program and if strong interest exists, consider the application for funding to the Small Cities Development Program. ~ Implementation: The St. Joseph Economic Development Authority and City Council. 3. The EDA should work with the College of St. Benedict and the Chamber of Commerce to proactively and consistently promote a downtown atmosphere that projects an. image and ambiance associated with S1. Joseph's history and its association with higher education as a means of creating a distinct identity for the City's downtown. ~ Implementation: St. Joseph Economic Development Authority, College of St. Benedict and Chamber of Commerce. City of St. Joseph Comprehensive Plan, 2006 Chapter 11, Page 31 4. Sponsor or work wIth. community organIzations and the Minnesota (3reen project to sponsor downtown landscape and holiday light displays which reflect the interdependence of the City and . the College. ~ Implementation: St. Joseph Economic Development Authority. Hiahwav Commercial Districts 1. Continue to encourage and promote efforts to achieve commercial redevelopment. ~ Implementation: Economic Development Authority. Industrial Development: 1. E)Cisting industrial uses should be retained and new industrial development should be encouraged to locate in existing industrial parks and industrially zoned areas. ~Implementation: Economic Development Authority and City Council. 2. The EDA should continue to work with property owners to develop future industrial areas adjacent to current industrial zoned land, to assure an adequate supply of industrial land is available for development in the future. ~ Implementation: Economic Development Authority. 3. Industrial activities complementary to existing uses should be identified and the development of such industries should be promoted and facilitated. ~ Implementation: Economic Development Authority and City Council 4. The Economic Development Authority should work with developers of new industrial parks to develop covenants which provide for aesthetically pleasing and quality developments. ~ Implementation: Economic Development Authority. City of 81. Joseph Comprehensive Plan, 2006 Chapter 11, Page 32