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HomeMy WebLinkAbout2007 [07] Jul 11 {Book 41} CITY Of ST. JOSEPH www.cityofstjoseph.com Administrdtor ludy Weyrens .. ........................... ..' .!;~.J~sephc;ityC~l.Incil ...... .... ,. . SPISCIA1.,~()IN'T.Ee'TIN~<\lVITt.f.;'J!,.,e;f.l;ppNPNltq;"'.E\lELQPMI5NTAlJT!MORITt Meeting Notice Wednesday July 11, 2007 3:00 p.m. City Hall . Mdyor Richdrd Cdrlbom 1. Call to Order. Councilors Steve Frdnk AI Rdssier Renee Symdnietz Ddle Wick 2. Approval of Agenda. 3. Business. a. Preliminary TIF Application - Schellinger. b. Market Research Study - McComb Group. 4. Adjournment. 2.) College Avenue North, PO Box 668 . Sdint. Joseph, Minnesotd )6)74 Phone ,2.0.,6,.]2.01 FdX )2.0.,6,.0)42. Administrdtor Judy Weyrens MdYor Richdrd Cdflbom Councilors Steve Frdnk AI Rdssier Renee Symdnietz Ddle Wick l~tA -I~- CITY Of ST. JOSEPH www.cityofstjoseph.com DATE: July 3, 2007 MEMO TO: Economic Development Authority Honorable Mayer Rassier Members of the City Council Administrator Weyrens FROM: Cynthia Smith-Strack, Municipal Development Group RE: Request for Tax Increment Financing Assistance - Schellinger Request: Mr. Chris Schellinger has submitted a pre-application for $230,000 (net present value) Tax Increment Financing assistance for the construction of a 9,000 square foot facility at 24 College Avenue North. A copy of the TIF Pre-Application is attached for your review. A representative of the company will be present to answer questions regarding the preliminary application. Background: T1F Tax increment financing is a tool which allows the City/EDA to reimburse a company or land owner a portion of the new property taxes generated as a result of an development 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. There are several types of tax increment financing districts, each of which has a maximum increment period established by state law. Mr. Schellinger is requesting assistance in the form of redevelopment TI F. Redevelopment T1F A "redevelopment district" means a type of TI F district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: 1. Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; 2. The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; 3. Tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: a. Have or had a capacity of more than 1,000,000 gallons; b. Are located adjacent to rail facilities; and c. Have been removed or are unused, underused, inappropriately used, or infrequently used; or C t' -.~ 2.') College Avenue North' PO Box 66s . Sdint. Joseph, Minnesotd .,6174 Phone )2.0.,6,.]2.01 Fdx ,2.0.,6,.0)42. 4. A qualifying disaster area. The Remodeling Professionals project is expected to qualify for redevelopment TIF under (1) above. Term of TIF Aareement The maximum term of a redevelopment TIF district is 25 years, however, the term of any TIF agreement should only reflect the amount needed to close a demonstrated 'gap' in financing; therefore, very often the approved agreement terms are much shorter than the maximum allowed by state law. Pavas yOU ao TlF State law allows the City/EDA to proceed with two types of TIF financing mechanisms. The first is the issuance of a TIF bond by the City/EDA. In this arrangement the proceeds of new tax increments are immediately available to the developer in the form of cash. With this type of mechanism the City/EDA bear significant risk in that if the project isn't completed and/or taxes are not paid, the City is responsible for making the bond payment. Due to the amount of risk involved, the City of S1. Joseph's TIF policy highly discourages the issuance of TIF bonds. Instead an arrangement known as 'pay as you go' is the standard mechanism embraced by the City/EDA. With 'pay as you go' TIF, the City does not issue debt, instead the City enters into an agreement with the Developer pledging to 'rebate' a portion of the tax increment provided property taxes are paid. In this kind of arrangement, the Developer may use the TIF agreement to leverage a note from a conventional lender but the City is not incurring risk if taxes aren't paid or the project not completed. The Proiect A site plan (draft) for the proposed development is attached. The redevelopment project consists of the construction of an 9,000 s.f. commercial structure within the Downtown. Estimated market value after taxes is anticipated to be $1.2 to $1.4 million; construction cost is estimated at: 784,590. Pay-as-vou-qo redevelopment TIF assistance is reQuested in order to help the project move forward. Schellinger has provided the EDAlCity with preliminary source/use statements illustrating a gap (net present value) in funding. Requirements: Preliminary TIF Application: The following are required to be submitted with the preliminary application for TIF assistance: 1. A map showing the. exact boundaries of the proposed development. A preliminary site plan is attached. 2. A General description of the project including the following: · Size and location of building(s); The proposed single story structure will be utilized for commercial lease space. The building design is reminiscent of traditional downtown buildings. Parking will be provided to the rear of the facility. · Business type and use; The redevelopment project will raze an existing residential dwelling and add 9,000 sf of commercial lease/own units in downtown. Commercial uses are expected to be a mix of retail and professional offices. A portion of the new structure will house the Applicant's business, Remodeling Professionals. · Traffic information, including parking; Parking facilities are proposed to the rear of the building, as required in the Central Business District. The Planning EDJ\ - Il CC-L1 . Timing of project; The applicant wishes to proceed with the expansion on a timely basis. The project cannot commence until, if approved, a TIF agreement is signed. Commencement of any construction activity prior to the signing of a TIF agreement will void any/all increment available to the project and, therefore, the use of tax increment financing. The applicant wishes to proceed with site plan approval later this summer and with construction to begin at the earliest in the Fall of this year or at the latest the Spring 2008. . Estimated market value following project completion. MDG has consulted with the County Assessor regarding a projected EMV. The review is pending at this time, however, a report is expected intime for the July 11th meeting. The applicant has provided project estimates within project pro-formas which place the project cost at $1.2 to $1.4 million. 3. The existing Comprehensive Plan land use designation and zoning of the property. The comprehensive plan guides the subject parcel to continued downtown (Central Business District) use. Current zoning class is B-1. Professional offices and retail facilities are permitted within said zoning class. 4. A statement identifying how the increment will be used and why it is needed to complete the project. The increment will be used to assist with the following eligible expenses associated with the development: land acquisition, site preparation, demolition and utility placement/service/connection. Thorough sources/uses will be included with the final application for TIF, the company will be required to disclose financial information in conjunction with the final application. Preliminary sources/uses are included in attachments to this memo. 5. A statement identifying the public benefits for the proposal including estimated increase in property valuation, new jobs to be created and other community assets. The preliminary application includes the following statement "The redevelopment of this site will increase the property tax value from a single family home with an estimated EMVof $106,000 to a commercial development with an estimated market value between $1,200,000 and $1,400,000. Furthermore, the redevelopment of this site will directly benefit the revitalization efforts of the City in promoting new businesses in the core Downtown. " 6. A written perspective of the developers company (Le. corporation, principals, history, past projects, etc.). A written narrative is attached to this memo. TIF Policy: A copy of the City's TIF policy is attached. The policies for the use of TIF include the following: 1. General Policy - The City of St. Joseph and EDA shall consider Tax Increment Financing for projects that serve to accomplish the City's goals for housing and economic development as they may. change over time. The goals include facilitating projects that would result in the creation of quality jobs(Le. stable employment and/or attractive wages and benefits) and the attraction. retention. and expansion of business and housing options in the City. The request appears to meet this policy criteria. 2. Objectives: As a matter of adopted policy, the City of St. Joseph and EDA will consider using tax Increment Financing (TIF) to assist private development projects to achieve one or more of the following purposes: The project appears to meet objectives as outlined in (a), (c), (d), (e) and (f) below. Cty4 ~ IS ((!~5 achieve one or more of the following purposes: The project appears to meet objectives as outlined in (a), (c), (d), (e) and (f) below. a. Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas. b. To provide for a balanced and sustainable housing stock to meet diverse needs both today and in the future. c. To retain local jobs and/or increase the number and diversity of quality jobs (Le. stable employment and/or attractive wages and benefits. d. To encourage additional unsubsidized private development in the area, either directly, or through secondary "spin-off" development. e. To offset increased costs of redevelopment (Le. contaminated site clean-up, demolition of existing building), over and above those costs that a developer would incur in normal urban and suburban development. f. To facilitate the development process and to achieve development on sites which would not be developed without this assistance. 3. Costs that qualify for TIF assistance: The TIF would assist with the razing of a substandard building and replacement of the building with a human-scale commercial facility. Unless exempt from business subsidy law (Mn. Stat) the development will be required to create a minimum of one new livable wage job within two years. The applicant is proposing the creation of a minimum of two new employment positions. Upon final application additional information regarding the occupational classification of proposed jobs will be submitted. 4. Minimum Qualifications: a. TI F would facilitate development that would not occur without the assistance. The Preliminary TIF application is supplemented by source/use statements including preliminary proforma analysis which identify a $230,00 (net present value) gap in project funding. The applicant has certified the development could not occur but for the use of TIF. b. But-For Test. The pre-application requires the developer to submit a statement identifying how the increment will be uses and why it is needed to complete the project. The applicant has submitted sources/uses analysis illustrating the project does not cashflow without T1F assistance. c. The project is consistent with the Comprehensive Plan and zoning ordinance. The subject parcel is zoned downtown commercial. d. Prior to approval of the TIF Plan (at the time of final application), financial guarantees and credentials will be required. e. The Applicant has executed a' purchase agreement for the property. E- O~+ - I {1 (f ii_ I," \ \.. V. 5. Desired Qualifications: a. Taxes paid before and after the development will be greater than a 2:1 ratio. Current property taxes payable on the subject parcel equal to $1,050. Taxes post construction are estimated at 3% of the project cost or $36,000 annually. Preliminary TIF projections have been created by Ms. Traci Ryan of David Drown Associates and are attached for your information. b. TIF should not be used for speculative projects. Mr. Schellinger has been a development professional for over a decade. Remodeling Professionals was formed in 2004. The company has conducts business within a 15-mile radius of the City of St. Joseph. Complete financial information from the company and major shareholders will be required if/when a final application is submitted. c. TIF should not be used to pay for overpriced land. The TIF assistance is proposed to be used for costs associated with redevel9pment of substandard property within the original townsite (Central Business District) and not for greenfield development. As you are aware, redevelopment costs in downtown areas far exceed greenfield development due to the fact the parcel features an existing structure which shall be razed resulting in more intensive site preparation work. In addition, since the site is within a dense, developed urban area, specialized construction techniques must be employed. TIF is not being used to pay for overpriced raw land. d. TIF should be pay-as-you go. The request is for pay-as-you go assistance. e. Preference is given to projects that do not cause extraordinary demands on City services. The applicant is proposing retail/office space. No extraordinary demands on the utility systems are anticipated. f. Preference is given to projects that are consistent with the compo plan, improve surrounding land uses, provide new employment, are financially feasible and provide the highest and best desired use for the property. The project appears to meet all of the aforementioned criteria in addition to furthering the City's . goal of revitalizing the Downtown with pedestrian friendly, human-scale construction. The Developer and the City's new TIF Consultant will be present to provide answers to questions and additional comment as requested. The Developer's purchase agreement expires at the close of August and the Developer can not close on the property unless TIF is approved. The concept of 'preliminary' as it pertains to this request is similar to the concept of 'preliminary' in conjunction with a 'preliminary plat.' Although the conventional definition of 'preliminary' describes activities preceding the main discourse or business approval of the 'preliminary' TIF application is an action analogous to approving the conceptual use of TIF for this project. Action: If the EDA is supportive of utilizing TIF for this project, a MOTION is in order to recommend the City Council approve the pre-application and authorize submittal of the final application and fee. If the City Council is supportive of utilizing TIF for this project, a MOTION is in order to approve the pre-application and authorize submittal of the final application and fee. fIJII - ,20 (1/7 City of St. JoSeph TIF Assistance Program Preliminary Application (Please print or type) Generallnform~tion: Legal name of owner/applicant: c ~.~ ~WE. \..~~ Operating Entity (if different): tel> Address: .3\55"u \<8\. t:+~ A\Jor.J \ MN 51.o$l.O Telephone Number:-320. <gl\~'.l.\\\~Fax Number: 3;m .1)~,r' ~I.\q t.t el. 44 Z, '44Lf :2 Name of contact person: C \~> C14tu...x..~~ 1>~.1 f>~.Z 1>a.3 1j.3 Pj' :s ?~.4 The following information should be presented in to the St. Joseph EDA Office as soon as pOSSible after the initial meeting with the EDA Director. The information will be evaluated to determine if the proposed project conforms with the community's goals and objectives. => A map showing the exact boundaries of the proposed development. => Give a genera/ description of the project including the following: . Size and location of building{s) · business type and use · traffic information, including parking · timing of project · estimated market value following completion => The existing Comprehensive Plan land use designation and Zoning of the property. Make a general statement as how the project will conform to the land use designation. => A statement identifying how the increment will be used and why it is needed to complete the project. => A statement identifying the public benefits of the proposal including estimated increase in property evaluation, new jobs to be created and other community assets. => A written perspective of the developers company(i.e. corporation, principals, history, past project, etc.) Signature Date: EDA ~ J;< tt -1 ~ 24 College Avenue North ~'Name: No Parcels Selected '''---'' Address: t2- h\ .; ~&" COLL'V J ,.. _\J~ f\ '\) v.\'-l '------- Desc:ription: EjJA -)3 1- c ~ - 10 l{ 6/612007 Pin: 24 College Ave Project The request to consider TIF financing is being submitted for a project proposed to be constructed at 24 College Ave. General Description of Project The site consists of24)28 sq.ft. and is currently included in the Downtown Redevelopment TIF district. The proposed walk up office condominiums would be consistent with the intent to revitalize the Core Downtown as outlined in the Final Draft of the Design Standards Committee Urban Environs Work Group dated May 1,2007. The site is currently occupied by a single family home and garage. Survey of the lot shows it to be long and narrow with a single access from the adjacent alley. Redevelopment of the site will necessitate removal of the house, garage, site preparation and accessing utilities. Utilities are accessible to the site and it is anticipated that minimal disruption to College Ave will occur during construction. Size and Location of the Buildiug · The building is proposed to be set-back from College Avenue property line 5 - 15 feet and front along the entire length of the West property line abutting College Avenue. · Proposed size of the building is estimated at between 8,000 - 9,000 square feet Business Type and Use · Business type and use would be Professional Office Space and/or Retail. Traffic information, parking, etc. · Parking is proposed to be at the rear of the building along with associated on- street parking. · Ingress and egress to the rear lot parking will be through the East! West alley along the South property line. Timing of Project · Timing of municipal approval of the project and initial interest in the property will impact the start for the project, however, · The goal is to begin construction as early as Fall 2007 or as late as Spring 2008. Estimated Market Value of Completed Project · The proposed project is estimated to have a completed market value of between $1,200,000 and $1,400,000. fl' tjy4 ~J1 ;i') t C -II Existing Comprehensive Plan Designation and Land Zoning 24 College Avenue is within District Five of the Comprehensive Plan land use districts and has the following designations, zoning and/or uses: Current Zoning The Zoning of24 College Avenue is currently commercial/B-l Central Business District Comprehensive Plan Land Use designation(s) The Comprehensive Plan identifies/recommends the land use f9r this property as Central Business and/or Medium to High Density residential. Proposed Project's conformation to current zoning and land use designation The proposed Office/Retail business qevelopment meets the goals and uses set forth in the existing zoning and Comprehensive plan for this property in several ways: }> Redevelopment of an existing residential unit within the Central Business District near the city's core. }> Creation of a commercial development that meets the goal of expanding a vital downtown business district }> Property is within the service area of existing municipal utilities and will; }> Assist in prevention of "leap frog" type development into un-serviced areas and; }> Provide for maximum cost effectiveness for community residents. }> The property is largely undemti1ized relative to the potential for business activity. Increment Uses and Necessity The site is currently occupied by a single family home and garage. Survey of the lot shows it to be long and narrow with a single access from the adjacent alley. Redevelopment of the site will necessitate removal of the house, garage, site preparation and accessing utilities. Because of the limited access and size of the lot, maximization of the lot is difficult. Increment will be used to defray the costs of redevelopment and limited functionality of the site Due to the current market structure in St Joseph, it is unlikely rents will be high enough to support the redevelopment costs associated with this site. Similar commercial developments within the core downtown are limited to a new project proposed on the next block to the south of the site. Existing office/commercial properties for rent or purchase are significantly older and therefore depress the market prices. Tax increment proceeds will be used to defray the redevelopment costs of the site and support the depressed rents in the market to allow the project to be successful. Public Benefit of Development The redevelopment of this site will increase the property tax. value from a single family home with an estimated market value of $1 06,000 to a commercial development with an estimated market value between $1,200,000 and $1,400,000. Furthermore, the redevelopment of this site will directly benefit the revitalization efforts of the city in promoting new businesses in the Core Downtown. d llJAc- Z<s zA fe-II 24 College Avenue Development Company Team Developer: Chris Schellinger A Life-long local resident residing in Collegeville Township and fourth-generation General Contractor in the St. Cloud area. Owner of Remodeling Professionals of St. Cloud, Inc., a company focusing primarily in residential remodeling with all business occurring within a 15 mile radius of Saint Joseph, MN. Significant business and business management experience within the S1. Cloud/St. Joseph Metropolitan area within construction, manufacturing and development. _ Development Consultant: Wendy Hulsebus Wendy Hulsebus bas over ten years of commercial lending and real estate development experience. She specializes in commercial financing and land development. Legal Counsel: D. Michael Noonan - Rinke Noonan Mike Noonan is a founding shareholder and has been practicing law with Rinke Noonan since 1969. He concentrates in the areas of business, corporations, partnerships, mergers and acquisitions, commercial transactions, and commercial real estate law. Scott Hamak - Rinke Noonan Scott Hamak bas been practicing law with Rinke Noonan since 2000 and concentrates in the areas of business law, commercial transactions, mergers and acquisitions and real estate development. Marketing Agent: Bill MolitorlMeyer Commercial Bill has an extensive background in commercial and industrial development, site selection and leasing. He is a life-long resident of the area and very familiar with the St. Cloud/St. Joseph area. Architect: To Be Determined Financing: To Be Determined )t [:b4 - lb ~ (t -/3 ", .... ..':.' . :. . . " .' .' . '. '. '.. ' . .'. ....... .' ,.' . . ..' ....'. " '. .... ...... . ....: . .... . '..' ...... . '. . ......, ,.... '. , " " '.:' .' ..:, '.. ,...... .....,.... ..... . ,'.' ': ...... '. '. '. ,.'.'..... .. .........'i '\;i,;,i~"~~ ""~':3 '; ': .,'.".: ,.,' ,.' .',,' .., .....,., :.d; " ",' '. . . .... , . . > '. yd. .... '. ~ _ ..' . , . '. . . ,'. . . : . . . . " .' . , , . ' 2007 .' . .... . S 'th k-' . ' . . " , '." a IDl .. trac. '.. :......... ..... ." '.,. . ". ' .' ." "'..':' '. . :," .'.:' '.. . " .' . ..".' ,...'..' .. ..' .'.' '.' ','.. " ..." .. ." .. '. .'. . .,. .....' :. ". .' . .' .. .' ..' .' .... ',,' ..' , . . :. ':. " . tanee for the cou:ve :on =ffj~2~~9~'~OOO s~quare footiniX ....m:~r , ,.......... ..' ','.' / . < .:....' . The Sle l,sque .()n lSCurretlt~yo~cup~~ :. yasingl~farm r,o~~. The, .' sed .... .., , develo men! :~~~gh~~ e t' )fut~oul<\ . :.:.: . . '., ,...........:.. . .. .'..: . ,: .: ',.", . . . . . ". .. pmenh()weverdoes not come witholltaprice. DemolitioncostSe. use . .P 'e to setbacks~ and parking requirements' and limited market rent capacity' " ect~t)anciallYinfeasiblewithout Tax Increment Financing~. ..... , .' ". "''':','. . ';-'.' ".,'. .::. .... '. :' .. '.' ..' '. .'. .,,". .' ,,,:,,".' .. :':--C". . .. ". '. '.'. ,'" ':" ....... '. . '"". . '.' ...... '. " '.~ . :> . ,. .. ntly, the higher project costS would necessitate a rental rate si~fican:ly .hi~er.ili, '.' . .....: the'$t Joseph Market would bear; Current office and rental space avwlablelslumted111' ." '," .' "supply and extremely dated, New construction costs and current building codes will,.'. provide fora safer more efficient building. However, tenants willsUllbe unwillitlg to pa . . .' rents that are significantly higher than neighboring properties. Here again; Tax mcremeht " . " Fmancing will lower the development costs and allow forlower rents from tenants. { .... .... . .... . ;E;:; We appreciate the opportunity to develop a premier office/re~ b~ld~gyn the ~ain:'.. .... ',' " ". '. ,',', , " artery mto downtown,St Joseph and feel the Tax Increment FmancmgIS rmp~rativefor: ......:..... '. .... ........ the success of the proJect.. .. ....... .' ..... > > . '. .. ..... . . . ".. ' '. :. . .' ".: . . '. . . "'. ,. ,.... . .~~';/-??# -: :,. 1 ~ //"/f/V'~-~ ---. '.. ........ .- . . t ~I t; J J1 Ii !# J ~p i J1 cr- t ~ t t A<2 .E3 ; llI:i U 5 t5 ~ :E ~ :.s F:' j n", Jz1 ,., - :r: ~ It t.l tj!j~ .;, j;! i:l ::t::: 15 C) 0~.:J ll:1 "' ~ q 0 ~ ~ o I , ~ I~ I~ I" ~ _I I ~ p Z ~ < E:5 ~ ~ ~ o C) V C\I " 23 iii t:<: U 8 "" Q,)~O .El ~ ES ,J;:< . ..:l :<u ~iil '" ::0 jas ~ . en ~ lil !:l ::0 r"'i ~ 0 "'-" 0 .. t:<: S ~ ~O S ~_.- --"-"'--- ~,'Z ~ ~ g z o ~ ~ ~ ~ ~~ ::c:~ ~C o 00 ~:-::--_., ~- ~ ~ ~ r :~ ~ ~ p Z ~ ~ Ci ~ ~ ~ o C) V C\J f\ - .3 , l3 ~ ~ u ~ 0 ~ :g ES :.E f-< ...:! . ....:! ... r:a u'"O ::r:: J;4[o ~~~~ . ii: S ::r:: o 0 d ~ ~ " ~ ~o q l) z o t-I ~ ~ ~ ~ E-t ~ ~ \ ..( \) :l.- ~.~ ~ p z ~ ~ c ~ ....:l ....:l o C) V (\j fl -y ~-- 'N~,-- \~~......-- r?~ ~a;l--:t.7$-- _' "" J-.oN~ ~- ~- ~~ - ~ a r::.:: U S f;l;l ~\ ., 0 ~ :s i:S :E f-< ...:l . ...:l ... f;l;l ~u~, ::z:: Cl. Q .. tI:l H.s tf.) L 1 ~ j;;l ~2:l::Z:: r-~ 8 C? V0 r::.:: f;l;l " ~ q o' ~ s- z o ..... ~ ~ ...:I ~ E-t C'I'J ~ r:r::I P Z ~ r:r::I o r:r::I ~ ~ o C) V C\I I~ - S ..J- ;J -. ~ ". i i -'- Additional Site Plan Detail 24 College Avenue Project 1. Heating/Cooling- a. Rooftop cooling units b. In floor, hot water heat. 2. Steel Truss a. See notes on site plan for additional information. 3. # of Restrooms a. Up to # 2 sets of common area restrooms. 4. Percentage Retail/Office a. Unknown at this time, depending entirely upon first tenants. b. It is expected there will be approximately a 50/50 mix. " I. f.~ - }C' Property Address: Investment Properly Analysis wlo TIF Purchase Cost Down Payment Financing: Financing: Amount Amount $1,008,000 $0 Land Value Personal Property Value Building Value Land Improvement Value Total Depreciation Rent per Unit: TIF $108,000 $0 $108,000 Annual Operating Expenses: Real Estate Tax Repairs & Painting MaintlCaretkr Manag'ement Reserves $0 $0 $0 $0 $0 Total Operating Expenses: Gross Operating Income Minus: Total Operating Expenses Equals: Net Operating Income Minus: Annual Debt Service Equals: Cash Flow Before Taxes II. Annual Debt Service Minus: Interest Equals: Principal Reduction III, Net Operating Income Minus: Interest Minus: Total Depreciation Equals: Taxable Income Multiply: Tax Bracket Equals: Income Tax Saved or (Paid) IV. Appreciation Return on Investment with Appreciation Rate Rate $1,260,000 DSCR $252,000 1.01 Term 20 P&I $8,908 /mo. $106,894 tyro Term 30 P&I $0 /mo. $0 tyro X 0% Depreciation X 20.00% $3,000 X 3.64% $44.177 X 6.67% $667 $47,844 9,000 sq ft $ Less Vacancy I 0.00%1 12 rent rate triple net Gross Operating Income: 0.0% 0.0% 0.0% 0.0% 0.0% Insurance UlilitieslWater/Cable Advertising Cleaning & Supplies Lawn/Snow $108,000 $0 $108,000 $106,894 Cap Rate: DSCR: 8.57% 1.01 $106,894 $88,200 $108,000 $88,200 $47,844 ($28,044) [[?dJtM%'~1;E0;'] Purchase Cost Cash flow before taxes + Princioal reduction + Taxes Saved + Aooreciation Cash Invested . Return on Investment without Appreciation _......._............................................_....................._......................... Cash flow before taxes + Princioal reduction + Taxes Saved Cash Invested Capitalization Rate Net Ooeratinn Income Purchase Cost Cash on Cash Cash flow before tax Cash Invested NOTE: INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED .. SOME CALCULATIONS ARE SUBJECT TO MATHMATICAL ROUNDING I~ .. 1 $0 $0 $0 $0 $0 Income Value $1,260,000 $1,106 $18,694 $9,81S $25,200 21.8% 11.8% 8.6% 0.4% 0.0% 0.00/0 0.0% 0.0% 0.0% $108,000 $0 Per Unit $1,260,000 2% Investment Property Analysis wI TIF Property Address: Purchase Cost Down Payment Financing: Financing: Amount Amount $905,003 $0 $1,260,000 DSCR Units $252,000 1.13 Rate 8.75% Term 20 P&I $7,998 /mo. $95,971 tyro Rate 6.00% Term 30 P&I $0 /mo. $0 tyro $20,000 X 0% Depreciation $15,000 X 20.00% $3,000 $1,215,000 X 3.64% $44,177 $10,000 X 6.67% $667 land Value Personal Property Value Building Value land Improvement Value Total Depreciation ............-.......................................................................................................................................................................... $47,844 Rent per Unit: $108,000 9,000 sq ft $ 12 rent rate triple net T1F $0 $108,000 less Vacancy I 0.00%1 Gross Operating Income: $108,000 Annual Operating Expenses: Real Estate Tax $0 0.0% Insurance $0 0.0% Repairs & Painting $0 0.0% UtilitieslWater/Cable $0 0.0% MaintJCaretkr $0 0.0% Advertising $0 0.0% Management $0 0.0% Cleaning & Supplies $0 0.0% Reserves $0 0.0% Lawn/Snow $0 0.0% Total Operating Expenses: ....................................................................................................................................................................... $0 I. Gross Operating Income Minus: Total Operating Expenses Equals: Net Operating Income Minus: Annual Debt Service Equals: Cash Flow Before Taxes $108,000 $0 $108,000 $95,971 Cap Rate: DSCR: 8.57% 1.13 Income Value $1,260,000 Per Unit $1,260,000 $12,029 II. Annual Debt Service Minus: Interest Equals: Principal Reduction $95,971 $79,188 $16,784 2% III. Net Operating Income Minus: Interest Minus: Total Depreciation Equals: Taxable Income Multiply: Tax Bracket Equals: Income Tax Saved or (Paid) $108,000 $79,188 $47,844 $6,661 $25,200 IV. Appreciation Purchase Cost Return on Investment with Appreciation 24.1% Cash flow before taxes + Princioal reduction + Taxes Saved + Aooreciation Cash Invested Return on Investment without Appreciation 14.1% Cash flow before taxes + Princioal reduction + Taxes Saved Cash Invested Capitalization Rate ....................................................................................................................................................................... 8.6% Net Ooeratino Income Purchase Cost Cash on Cash ,.......................................................-..-.......-................-......-.............-.........................-............................................................ 4.8% Cash flow before tax Cash Invested NOTE: INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED. . . SOME CALCULATIONS ARE SUBJECT TO MATHMATICAL ROUNDING i4 - 't 24 College Ave Project Sources $ $ $ Bank Financing Tax Increment Financing Deferred Developer Fees Total Sources 905,003 230,000 100,000 $ 1,235,003 Uses Land Acquisition Building Construction Demolition Professional Fees Development Fee Interest and Carrying Costs Total Uses A ' Gel $ $ $ $ $ $ $ 215,900 784,590 10,000 77,639 50,000 96,874 1,235,003 I Development Budget Project: 24 College Ave Project July 3, 2007 DEVELOPMENT BUDGET College Ave Project 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 liTEM COST Building Acquisition 0 Land Acquisition 215,900 Rehab (see schedule) 0 New Construction (see Schedule) 716,265 Permits -incl. 0 Site Work whole site - incl. 0 Demolition - Remove Bldg. 10,000 Streets and Sidewalks - incl. 0 Water- incl. 0 Sewer- incl. 0 Stormwater & Drainiage 0 Contingency - 2% 14,325 Site Planning 0 Architect & Engineer - 7% 50,139 RE Attorney 2,500 Tenant Buildout Allowance 54,000 Survey 1,500 Const. Loan Interest and Carrying Costs 68,874 Const. Origination 11,000 TIF Fee 15,000 Property Taxes 0 Appraisal 4,000 Environmental 2,000 Organization Expense 2,500 Development Fee 50,000 Marketing- 1 % 12,000 Other 5,000 TOTAL DEV COST 1,235,003 Land Area Phase I 61,519 sqft Cost per Sq Ft o Total Bldg sqft assumes $6 per sq foot 9,000 estimated at 1% construction loan Misc Carrying costs Cost/SqFt $ 137 New Construction Model Number 1 2 3 4 5 Size in Sq Ft Cost/Sa Ft Unit Cost # Units Total Sales Price Price/saft 9000 137 1,235,003 1 1,235,003 1,260,000 $ 140 0 137 0 1 0 - $ - 0 137 0 3 0 - $ - 0 137 0 1 0 - $ - 0 0 0 - 205,834 6 1,235,003 1,260,000 Total Less Sales Commissions Total Profit New Construction Months to construct Sales time 31 months 4 months Sales Expense 6.0%1 Page 1 Proforma lumber1 012306.xls I~ -10 Commercial Project Recap Project Name College Avenue Professional Building Project Location 24 College Avenue; Saint Joseph, MN 56374 xi dgs 9 x :lgs 9 Phase Phase Description 0 0 0 0 Total 172.00 Sians 4000 0 610.00 Performance Bond 650.00 Insurance 4500 850.00 Architectural costs - Printina 0 1000.00 Building Permits 12,600 1040.00 SupelVision/Site Sup/General 40,000 1050.20 Staking 3500 1100.00 SAC Fee 5,400 1120.00 WAC Fee 1130.00 Park Fee 1400.00 QualitvControl Test 3,000 1500.00 General Reauirements 1503.00 Winter Conditions 3000 1505.00 Temp Utilities 3500 1600.00 Material and EQuipment 1,200 1700.00 Final Clean Up/Close 1850.00 Dumpster/Scrap 5,880 1900.00 Miscellaneous Requirements 1,000 1910.00 Milea"e- Carpenters 1,100 2110.00 Off-5ite Improvements Road 2200.00 Earthwork 15,000 I 2280.00 Fill Hauling 7,500 2500.00 Pavina & Surfacina & Curb 14,500 2510.00 Parkina lot Strioina 0 2700.00 Site Utilities/Sewer, Water & Storm 9,600 2810.00 Underaround Sprinklina 2900.00 Landscaoina 10,000 3100.00 Concrete 2-New Aooroaches 3270.00 Concrete Curb 3270.00 Concrete Curb Face Walk 3400.00 City Sidewalk with Ped Ramps 3500.00 Concrete Floor 4285.00 Stucco - 4400.00 Stonework 4990.00 Comb MasonlV/Concr Bid 90,000 6100.00 Rough Up Carp Materials 137,800 6150.00 Trusses 28,300 6200.00 Finish Carp Materials 6210.00 Carn labor - Rough Up 59 300 6210.00 Carp Labor - Finish 6220.00 Millwork 6400.00 Cabinets 7100.00 Waterproofina 7200.00 Insulation 20,685 7201.00 Blowino & Insulation labor 7300.00 Shineles & Rootina 22,500 7301.00 Shin~J1ina labor Onlv 7460.00 Specialtv Sidina Materials 19,900 7460.00 Specialtv Sidina Labor 7630.00 Gutters & Downspouts 8100.00 Hollow Metal Door/Fr 8120,00 Alum Entrance Door/Fr 8520.00 WindowslEntrv Doors 25,000 8700.00 Finish Hardware 2.500 9250.00 Sheetrock Material 9255.00 Sheetrock Hanging labor 15.000 9255.00 Sheetrock Taoe & Sorav 15000 Bldg 1 Bldg 2 Bldg 3 Bldg 4 bl 1 bId 3 bid 1 bid r-Jl x 1 blC!9_s 1 bldg x 3 bldgs 1 bldg Phase Phase Description 0 0 0 0 Total 9500.00 Acoustical Treatment 15000 9680.00 Caroet & Inlaid 9900.00 Painting 9950.00 Wall Coveril1Qs 10400.00 Identifvina Devices 10520.00 Fire Proto ~ecialtv 10550.00 Postal Specialties 10800.00 Toilet & Bath Accessories 10830.00 Mirrors 10850.00 Marble Tops 12500.00 Window Treatments 13900.00 Firing Warning System 15300.00 Fire Sprinkling Svstem 35,000 15400.00 Plumbing 20,000 15450.00 Water Softener/Conditioner 15500.00 HVAC (HeaWentlAC) 25,000 16050.00 Electrical 35 000 16500.00 Liaht Fixtures 16720.00 Fire Alarm ~stem 16730.00 Security Access SyStem MOO 16760.00 Intercom Systems 99999.00 MN Sales Tax Contractor Overhead Contractor Profit Totals 716,265 0 0 0 0 Square Foot Building construction costs Sq Ft ~OOO 0 0 0 79.59 #DIV/O! #DIV/O! #DIV/O! $ 716,265.00 A-(~ City of St. Joseph Policy and Procedures for Tax Increment Financing Project For the purpose of this policy, the "EDA" shall also mean the St. Joseph Economic Development Authority, which serves in conducting various economic development, housing and redevelopment programs and activities within the City of St. Joseph. I. GENERAL POLICY The purpose of this policy is to establish th~ position of the City of St. Joseph and the Economic Development Authority with respect to the use of Tax Increment Financing for private development within the City. This policy shall be used as a guide in the application for, review and consideration of any requests for Tax Increment assistance. The fundamental purpose of tax increment financing in St. Joseph is to encourage desirable development and/or redevelopment that would not otherwise occur "but for" the assistance provided through TIF. The City of St. Joseph and EDA shall consider Tax Increment Financing for projects that serve to accomplish the City's goals for housing and economic development as they may change over time. The goals include facilitating projects that would result in the creation of quality jobs(Le. stable employment and/or attractive wages and benefits) and the attraction, retention, and expansion of business and housing options in the City. II. CITY's and EDA's OBJECTIVE FOR THE USE OF TIF As a matter of adopted policy, the City of St. Joseph and EDA will consider using tax Increment Financing (TIF) to assist private development projects to achieve one or more of the following purposes: . Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas. · To provide for a balanced and sustainable housing stock to meet diverse needs both today and in the future. · To retain local jobs and/or increase the number and diversity of quality jobs (Le. stable employment and/or attractive wages and benefits. · To encourage additional unsubsidized private development in the area, either directly, or through secondary "spin-off" development. · To offset increased costs of redevelopment (Le. contaminated site clean-up), over and above those costs that a developer would inCur in normal urban and suburban development. · To facilitate the development process and to achieve development on sites which would not be developed without this assistance. · To meet other uses of public policy, as adopted by the Council from time to time, including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc. St. Joseph TIF Policy 1 El)A - 29 f f! - 15 III. COSTS WHICH QUALIFY FOR TIF ASSISTANCE . Project design fees including: utilities, landscape, architectural and engineering design. . Site related work including: permits for site work, earthwork/excavation, soil correction, landscaping, utilities, streets and roads, street/parking lot paving, street/parking lot lighting, curb and gutter, sidewalks . Land acquisition . Special assessments . Legal fees (acquisition, finance, closing) . Soil tests . Environmental studies. . Surveys . Park and open space dedication fees . Interest rate write downs . Relocation assistance . Replacement or clean-up of contaminated soils which would otherwise preclude redevelopment . Rehabilitation . Any other costs allowable by Statute IV. PROJECTS WHICH MAY QUALIFY FOR TIF ASSISTANCE All new TIF projects considered by the City of St. Joseph and EDA must meet each of the following minimum qualifications and will also be evaluated based on their ability to meet the desired qualifications for assistance. However, it should not be presumed that a project meeting any of the qualifications will automatically be approved. Meeting the qualifications creates no contractual rights on the part of any potential developer to have its project approved. MINIMUM QUALFICIA TIONS 1. The project should meet one or more of the Tax Increment Financing Objectives outlined in Section II of this policy, but at a minimum shall: . Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development and redevelopment and private investment in those areas. . To facilitate the development process and to achieve development on sites which would not be developed without this assistance. 2. The developer must demonstrate that the project is not financially feasible "but for" the use of TIF assistance. 3. The project must be consistent with the City's Comprehensive Plan, Zoning Ordinances and the EOA's Strategic Plan or require changes to the plan and ordinances must be under active consideration by the City at the time of final TIF application submittal. 4. Prior to approval of a TIF financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil borings, private lender commitment, and/or St. Joseph TIF Policy 2 i? IJIf - 21 f{-If:; other information the City, EDA or its financial consultants may require in order to proceed with an independent underwriting of the proposal. 5. The developer must provide adequate financial guarantees to ensure the completion of the project. These may include, but not limited to: assessment agreements, letter of credit, personal deficiency guarantees, maximum cost contract, etc. 6. Any developer requesting TIF assistance should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. TIF will not be used when the developer's credentials, in the sole judgement of the City, are inadequate due to past track record relating to: completion of the projects, general reputation and/or bankruptcy, or other problems or issues considered relevant by the City and EDA. ' 7; The developer shall retain ownership of the project at least long enough to complete it, to stabilize its occupancy, and to establish the project management and initiate repayment via the TIF assistance. DESIRED QUALIFICATIONS 1. TIF proposals creating a higher ratio of property taxes paid before and after redevelopment will receive priority consideration. Given the different assessment circumstances in the City, this ratio will vary widely. A 1:2 ratio of taxes paid before and after redevelopment is desired. 2. TIF proposals should normally not be used to support speculative industrial, commercial, office or housing projects. In general, the developer should be able to provide market data, tenant letter of commitment or finance statements which support the market potential/demand for the proposed project. 3. TIF will normally not be used in a project that involves an excessive land and/or property price. This will normally be where the acquisition price is more than 20% in excess of the market value as determined by an independent appraisal of the property. 4. TIF will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of tax increment subsidies. Developers should provide information to support that the TIF assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. 5. TIF will be provided on a pay-as-you-go basis. Any request for up front assistance will be evaluated on its own merit in accordance with this policy. Projects requesting pay-as-you-go financing will receive priority consideration. 6. Preference will be given to projects that do not place extraordinary demands on City services. If it is determined by the City's Public Works Director and City Engineer that an extraordinary increase in public service would result because of the project, TIF financing will not be considered. 7. TIF will not normally be used for projects that would generate significant environmental problems in the opinion of the local, state, or federal governments. Priority will be given to project that aim to clean-up existing contaminated sites and would facilitate the location of an industry or business that has an environmentally sound track record, or meet a housing need in the City. 8. Preference will be given to projects that meet good public policy criteria as determined by the EDA and City Council, including: St. Joseph TIP Policy ElJA ~ ~ 3 (t -/J . Projects that are in accord with the Comprehensive Plan, Strategic Plan, Zoning Ordinances and other redevelopment plans of the City and EDA, . Projects that provide significant improvement to surrounding land uses, the neighborhood, and/or the City, . Projects that provide a significant increase in tax base, . Projects that provide significant new, or retained employment, . Projects that meet financial feasibility criteria established by the EDA, and . Projects that provide the highest and best desired use for the property. V. TAX INCREMENT PROJECT EVALUATION PROCESS The following five methods of analysis for all TIF proposals will be used: 1. Consideration of project meeting minimum qualifications. 2. Consideration of project meeting desired qualifications. 3. Project meets "but for" analysis and statutory qualifications (Exhibit A). 4. Project Report Card (Exhibit B). 5. Project is deemed consistent with the EDA Strategic Plan and the City's Comprehensive Plan. Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case shall one area outweigh another in terms of importance to determining the level of TlF assistance. VI. APPLICATION FOR TIF ASSISTANCE FOR ALL TIF DISTRICTS AND PROJECT AREAS The City's tax increment financing program will be administered by the St. Joseph Economic Development Authority (EDA). The St. Joseph EDA will require a non-refundable application fee in the amount of $2,000 for its processing of the application. The application fee shall be paid to the EDA at the time of final TIF application is submitted. At the time a final TIF application is submitted, the applicant shall also deposit $8,000 with the EDA if the project cost is estimated at $750,000 or less or $15,000 if the project cost is estimated at $750,001 or more, with the EDA to cover its attorney's and consultant's costs incurred as part of amending or establishing a TIF District, drafting and negotiating a development agreement, and conducting and fiscal analysis that may be require to meet the requirements of utilizing TIF. If additional costs are incurred beyond the $15,000, prior to the execution of a development agreement, the EDA shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. If the project is approved and the applicant proceeds with the project, the EDA shall reimburse the applicant any unused portion of the deposit as of the date of execution of the development agreement. If the applicant does not proceed with the project, the EDA shall reimburse the applicant for the unused portion of the deposit as of the date that the EDA is notified in writing that the applicant desires to withdraw its application. VII. APPLICATION PROCESS The application process is a two-step process and must be completed in accordance with the TIF application procedures (Exhibit C). The purpose of this approach is to give an applicant the opportunity to present a development proposal without expending a great deal of money and time in pursuing a development that may conflict with the City's and EDA's goals and objectives. St. Joseph TIF Policy 4 {;j)A- - 31 t {' - /fy VIII. OTHER POLICY ISSUES FISCAL DISPARITIES Does not impact the City of St. Joseph according to State Statute. Loss of Government Aid The City and EDA shall follow applicable state laws in terms of potential public improvement financing with TIF. It shall be the general policy of the City and EDA to identify public improvements at the time of adoption or amendment of the TIF Plan. PASSED AND DULY ADOPTED this _ day of PASSED AND DULY ADOPTED this _ day of .1998 by the City of St. Joseph. , 1998 by the St. Joseph EDA. Mayor EDA Chair ATTEST: City Administrator EDA Director Attachment A "But For" Worksheet Attachment B In-house Grading and Report Card Attachment C Application Procedures St. Joseph TIP Policy 5 EJ)tA:--3Z tc -If ~" ~) .l{~ Attachment B PROPOSED TAX INCREMENT FINANCING Rating & Analysis 1. Ratio of Private to Public Investment in the Project: Private Fllnd"Q'D<' C~~~ 3:1 2:1 Below 2: 1 $ " 0 D5, (70 '3 $ ':250:0{)f) $ I H'7' f/o:3> , / q. 31; Private Investment TIFlPublic Investment Ratio of Private /Public Financing 2. Jobs created and/or retained in the City: ~ # Jobs created/retained 26+ 11-25 6-10 ~ None Total number of jobs created andlorretained as a result of the project. 3. Pay Level of Jobs: Job Classification Wa2e % of Median Class Waee* (CJ;1~~C%lJY1 laborer "It/VIS C U/{ (above I"" ~ n, SO ( lINe-UtiI'! = \ 5,<-/3) I \ .310 ~ n..<;o [t'V'f.d{a/ll~\5.,",,3) Ilst'Jo Average Score: EJ *** ~ 3 2 1 Score: 5 4 3 ~. 1 Score:** 5 .5 * Median Wage for Job Classifications is defined as the median wage for the applicable overall job classification in the St. Cloud Metropolitan Statistical Area as identified by the Minnesota Workforce Center's most current report. **Score Calculation (for each iob classification): 111 % of median wage for job classification or greater = 5 101- 110% of median wage for job classification = 4 100% of the median wage for job classification = 3 90 - 99% of the median wage for job classification = 2 Less than 89% of median wage for job classification = 0 *** The average score of all job classifications shall be used as the overall score for this category. E/JA--3Y f( -J2 4. Increase in Estimated Market Value: 1) ~ I Before/ Aft~"Plonmpnt Estimate market value of site after development ~ Estimated market value of site before development 1:3 1:2 Ratio of value before/after development 1: 1 1:<1 Stoore " ~ 4 3 2 1 o >rt; $ 'I 3a?,ooo $ IO~.~ro . 5. Will the proposed project redevelop a previously contaminated or environmentally challenged site; redevelop a blighted or underutilized parcel; or, preserve/promote historical features of existing buildings? ~5 ?(5~ ~No(Zeropoints) 6. Is the proposed project consistent with the City's long term development and redevelopment guidelines as contained in the City's Comprehensive Plan? ~5 ~Yes(;;,"~ ~No(Zeropoints) 7. Does the Developer agree to pay-as-you-go financing? -15 peS(5po~ _No (Zero points) CALCULATION OF OVERALL SCORE: Total Points Scored / 7 = average score. Average, 4 = Below Average, 5 = Fail '04,,) A ~trC\5 ~ Pcti n t~ .. -' 31 - - L1. 4~ EIJrl- - 35 tc-;:z ... 'te u ... GO 'iii. ... e- ... 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CD ~ :om ~>' '" Q. 00000000000000000000000000000 ~8:g8:g~88:g8:g:g:g8~~:g:g:g:g:g:g:g~~8:g:g:g r~r~r~rr~~r~~~~r~~r~~~~~~~~rr 8g8E~EE~~~EEES~~~~~~g~~~ssags NNNNNNNNNNNNNNNNNNNNNNNNNNNNN t;1 (I ~)3 .. ~ C> ... ... i~ ...... "';0 ..... ..... ~ ... ... N ^ ^ ii CD., .... ~~ C Q : !: .t~ e .. E ;c ::i ~ '" <:> ... ... ~ ~ ... .:, ... :is :c >< w i g '" ~ = ~ is "0 '~ Cl www.cityofstjoseph.com CITY Of ST. JOSEPH DATE: July 3, 2007 Administrdtor Judy Weyrens MEMO TO: S1. Joseph Economic Development Authority Honorable Mayor Rassier Members of the City Council Administrator Weyrens Mdyor Richdrd Cdrlbom FROM: Cynthia Smith-Strack, Municipal Development Group Councilors Steve Frdnk Al Rdssier Renee Symdnietz Ddle Wick RE: McComb Group Market Study Background: In late February of this year the City executed a contract agreement with McComb Group to conduct market research and analysis of S1. Joseph business communities, trade areas, potential demand for retail/services and potential demand for rental units within the Central Business District. The market study was to be completed by June 30th. As of the date of this letter the City has not taken receipt of the study, however, the Ci~/EDAlCOllege/Chamber and Mr. McComb will be meeting to review the final study on July 11 h. If copies of the study are received prior to the meeting they will be forwarded to members of the City Council and EDA, time permitting. Action: Review and comment following the presentation by Mr. McComb is kindly requested. :?-5 2.)" College Avenue North. PO Box bbs . Sdint. Joseph, Minnesotd )"b)74 Phone Fo.jbj.72.01 FdX Fo.jbj.Oj42.