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HomeMy WebLinkAbout2007 [07] Jul 25 CITY OF ST. JOSEPH www.cityofstjoseph.com Administrdtor Judy Weyrens ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY NOTICE OF SPECIAL MEETING Wednesday JuJy 25, 2007 4:00p.m.CltyHa.U MdYor Richdrd Cdrlbom 1. Call to Order. Councilors Steve Frdnk AI Rdssier Renee Symdnietz Ddle Wick 2. Approval of Agenda. 3. Approval of Minutes. a. July 11, 2007 (to be distributed at meeting) 4. Business. a. 2008 Budget Workshop. b. McComb Group Market Research Study - Comments 5. Next Meeting Date: August 22nd. 6. Adjournment. 2.) College Avenue North' PO Box bb8 . Sdint. Joseph, Minnesotd )b174 Phone ,2.0.,b,.72.01 Fdx Fo.,6,.0,42. www.cityofstjoseph.com CITY OF ST. JOSEPH DATE: July 18, 2007 Administrdtor Judy Weyrens MEMO TO: S1. Joseph Economic Development Authority FROM: Cynthia Smith-Strack, Municipal Development Group MdYor Richdrd Cdrlbom Background The City's Finance Director, Lori Bartlett has convened the 2008 budget process. The EDA must submit a preliminary budget to the City Council for consideration at budget workshop(s) in August. A preliminary budget will be adopted and certified to the County in September and a final budget to be adopted in December, 2007. RE: EDA Budget - 2008 Councilors Steve Frdnk AI Rdssier Renee Symdnietz Ddle Wick Attached is a worksheet illustrating preliminary budgets for the following funds: 1. The EDA is a separate entity with a separate Fund (Fund 150). 2. Tax Increment revenues and expenditures forTIF 1-3 (Borgert Products) - Fund 155 3. Tax Increment revenues and expenditures for TIF 1-4 (Vicwest Steel/8t. Joe Dev. LLC) Fund 156 4. Revolving Loan Fund - Fund 250. Since there are no expenditures relative to this Fund, it is not included on the worksheet. Please note the following: Fund 150: Operating Fund for the EDA: The 2008 budget is identical to that proposed in 2007. The adopted budget for Fund 150 was decrease but supplemented by a fund transfer to reflect the proposed budget. The proposed budget includes $8,000 for membership dues to the S1. Cloud Area Economic Development Partnership. Fund 155: TIF Fund for 1-3: The anticipated revenues and expenses reflect TIF revenue received in 2007. The City, via development agreement, is required to reimburse the developer 95% of the increment received. Fund 156: TIF Fund 1-4: The anticipated revenues and expenditures are based on estimates. Actual numbers are dependent on assessed market value. The TIF beneficiary did not enter into an assessed market value agreement, therefore, the actual proceeds of the pay-as-you-go issue is less than included in the TIF budget included in the plan for 1-4. Fund 250: Revolving Loan Fund. The 2006 audited fund balance is $48,225, The balance is available for loan to business establishments which create jobs at livable wages. Also attached is a copy of last year's EDA capital improvement request for $10,000 for land acquisition along with a clear capital improvement form for 2008. Action: The EDA is asked to recommend a preliminary budget for 2008 for City Council consideration. A motion is in order. 3 2.)" College Avenue North, PO Box 668 . Sdint. joseph, Minnesotd )"6)74 Phone ,2.0.,6,.72.01 Fdx ,2.0.,6,.0,42. I- W W J: C/J ~ a:: o ;: I .... Q) OJ .c" e,;j Q)m l/) >. O~ .., 5 "';J: C/J:; '0<( ~c () Q) E e, o Q) > Q) c ,~ E o c o ~ w .... gj ::! ~ l:r r...Q) cQ:: c.... NQ) ~ ::! co .... Q) ~ co::! cCO ~): .... ~ :c:: ...... Q) .g> r-...:::l oCO 0-0 <'I~ Q.. .g ":t: "g r-... 0 OE: ~":t: ~ >- E (O":t: 8~ <'I..... 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'I ~ROJeC'f TITLe: Land Acquistion TOTAL COST: $1 0,000..00 PROJeOT NU,M86R: PROJECT CATEGORY: [)J;-$C~II''ftQN= JUS"f1FICAtidN: - tsF{QJ~CT c_q~I$A~[) fUNDING SQVRCE$ BY YEARS: . ..'.'-...~",",... prcljettFUhcUflg Prlqr $Q4i'~e Vear$ 2QQ7 20Qf$ 2Q09 2(}10 21)1 1 TQtal 0.0:0 0..00 EDA 10,000.00 10;000.00 0.00 0.00 PROJECT COSTS PROJECT STARTING DA 1"6: 2005 P~li.ninari~ La~d Acquisition PROJECT COMPLETION DATE: 2006 C9nstruction Equtpment ana Other NEIGHBORHOOD: Total $(LOO ~'7 ( ( CITY' OF ST. JO.SEPH . . . . .'-, CAPITAL IMPROVEMENT PLAN 2ClB.8 ..atJ12 PRC)JECT TITLJ;: PROJE~T NUlIIIBER: OI;$CfllpftQ)): JUSTIFfCA.'fION: 'fOTAL COST: ;PR{)dEC;r OA'rEGOR:Yl PRO..U;qtCQ$t$ AND FLJNtllNG $QURC~~ay YEAR$; prol~(;fFurid'ins P'rlot SoUr~~ Years 2008 2009 2010 2011 2012 PROJECT COSTS PROJECT STARTING DATE: Pl"ellrnlrla.ries L;.nd Acquis'itlon Constl"uction egujpment.and Other Total PROJECT CO.MPLETION DATE: NEIGHBORliOOD: ( " t#f<g Toted 0,00 0.00 0.00 0.00 0.00 $0.00 CITY ()If ST. JOSFA'H Annual Budget Priority Survey Budget Year 2008 1. Your Overall Priorities Please prioritize the following categories, numbering them from 1 through 6, 1 being the most important to you and 6 the least important to you. Please use each number only once. 5.29 2.00 3.00 3.43 2.43 2.86 Priority Rank 6 3 4 6 666 4 5 5 544 1 1164324 523 155 3 2412215 362 3 132 Recreation & Culture Contributions to parks, playgrounds, trails, mowing, flowers, shelters, athletic fields, special events, arts and libraries. Capital Improvements New construction, maintenance on City buildings, drainage projects, major infrastructure projects, etc. Economic DevelopmentlEmployment/Tourism New business, business retention/expansion, job creation, tourism services, regional economic development initiatives. Neighborhood Planning/Housing Zoning, neighborhood planning, code enforcement, affordable housing, etc. Public Safety Police, Fire & Rescue, related programs and services. Public Works rash pick-up, recycling, streets & sidewalk maintenance, street lighting, building maintenance, traffic operations, etc. q 2. Overall Success in Providing Please indicate a percentage of success you believe St. Joseph has exhibited in providing the following categories. O%-the service was not offered at all nor was it contemplated, 100%=complete success in offering that service) % Success 72.2% 5 8 9 8 8 5 7.5 Recreation & Culture ------- Contributions to parks, playgrounds, trails, mowing, flowers, shelters, athletic fields, special events, arts and libraries. 86.5% _9_8_8_10_7.5_9_9_ Capital Improvements New construction, maintenance on City buildings, drainage proj ects, major infrastructure projects, etc. 47.9% _3_5_8_6.5_5_6_ Economic Development/Employment/Tourism New business, business retention/expansion, job creation, tourism services, regional economic development initiatives. 71.5% _9_7.5_7_8_8.5_4_6_ Neighborhood Planning/Housing Zoning, neighborhood planning, code enforcement, affordable housing. 87.5% 8 10_9_8_9_8.5_ Public Safety Police, Fire & Rescue, related programs and services. 70.8% 8 8 9 8.5 8 8 Public Works ---- --- Trash pick-up, recycling, streets & sidewalk maintenance, street lighting, building maintenance, traffic operations, etc. 3. Thinking about City of St. Joseph's services, do you feel taxpayers are getting their money's worth for their tax dollar? 100%xxxxxxx 0 Yes, getting money's worth o No, not getting money's worth o Do not knowlNot sure 4. Citizens support City services through a portion of real estate taxes and other user fees. Considering all City services on the one hand, and taxes on the other, which of the following statements is closest to your view? o 72 % xxxxx 0 28% xx 0 Decrease services and taxes (If chosen, go to Questions 5) Keep taxes and services about where they are Increase services and raise taxes/fees (If chosen, go to Question 6) 10 5. If you feel services should be DECREASED, which services should be decreased? -Not decrease - control spending increases in police dept 6. If you feel services should be INCREASED, which services should be increased? -EDA-Marketing; Recreation-mostly kids-summer rec/community center -City pay more of project costs overall to decrease assessments where impact is more city related as a whole. -Increase services across the board. Staying the same/decreases will only create larger increases in the future. Keep up with inflation/personnel needs. 7. What do you see as the BIGGEST ISSUE facing the City over the next five years? -CommerciaVindustrial development -Manage growth and preserve the essence of the community -Tax base ;- lack of commercial business -Potential for stagnant/decreasing property values -Levy limits -New business -Growth -Growth - requires more planning and forward thinking -Expansion of commercial/industrial development and associated infrastructure 8. What do you think should be the City's BIGGEST PRIORITY over the next five years? -Marketing to attract industrial/commercial as well as recreation in the city. Competition is tight in the St. Cloud metro area - slow industriaVcommercial growth in St. Joseph. -Taxes -Continued growth management -New business - Work on mixture of industriallbusiness vs. residential areas for tax base -Industrial/commercial growth/infrastructure - 3 areas: industrial park, CSAH 2 realignment, downtown business redevelopment 9. Do you feel the property tax rate is a fair rate? If not, should the rate increase or decrease? -Fair rate - do not raise much next year - keep to 2% overall increase. -Fair -Fair -Decrease -Fair - budget put together cooperatively with a lot of thought - if it is determined to increase the tax base - would reflect the needs of the community 10. Please list any additional comments or concerns you may have. -Add summer rec in the parks budget -Look at more sidewalks as funded by city along streets -More info on city hall/center -Open for development and impact of development -Managed growth -Keep a fair and comparable tax base to other surrounding cities -Tough times for the next few years - foreclosures - public looking for more hand-outs /I ~ (:rrr (.;Jtf S'r.JOSIt1t~fl Annual Budget Priority Survey Budget Year 2008 1. Your Overall Priorities Please prioritize the following categories, numbering them from 1 through 6, 1 being the most important to you and 6 the least important to you. Please use each number only once. 5.29 2.00 3.00 3.43 2.43 2.86 Priority Rank 6 3 466 6 6 4 5 5 544 1 1164324 523 155 3 2412215 362 3 132 Recreation & Culture Contributions to parks, playgrounds, trails, mowing, flowers, shelters, athletic fields, special events, arts and libraries. Capital Improvements New construction, maintenance on City buildings, drainage projects, major infrastructure projects, etc. Economic DevelopmentlEmploymentffourism New business, business retention/expansion, job creation, tourism services, regional economic development initiatives. Neighborhood Planning/Housing Zoning, neighborhood planning, code enforcement, affordable housing, etc. Public Safety Police, Fire & Rescue, related programs and services. Public Works rash pick-up, recycling, streets & sidewalk maintenance, street lighting, building maintenance, traffic operations, etc. J;> 2. Overall Success in Providing Please indicate a percentage of success you believe 81. Joseph has exhibited in providing the following categories. O%-the service was not offered at all nor was it contemplated, 100%=complete success in offering that service) % Success 72.2% 5 8 9 8 8 5 7.5 Recreation & Culture ------- Contributions to parks, playgrounds, trails, mowing, flowers, shelters, athletic fields, special events, arts and libraries. 86.5% _9_8_8_10_7.5_9 _9 _ Capital Improvements New construction, maintenance on City buildings, drainage projects, major infrastructure projects, etc. 47.9% _3_5_8_6.5_5_6_ Economic Development/Employment/Tourism New business, business retention/expansion, job creation, tourism services, regional economic development initiatives. 71.5% _9_7.5_7_8_8.5_ 4_6_ Neighborhood Planning/Housing Zoning, neighborhood planning, code enforcement, affordable housing. 87.5% 8 10_9_8_9_8.5 Public Safety Police, Fire & Rescue, related programs and services. 70.8% 8 8 9 8.5 8 8 Public Works - - -- Trash pick-up, recycling, streets & sidewalk maintenance, street lighting, building maintenance, traffic operations, etc. 3. Thinking about City of St. Joseph's services, do you feel taxpayers are getting their money's worth for their tax dollar? 100%xxxxxxx 0 Yes, getting money's worth o No, not getting money's worth o Do not know/Not sure 4. Citizens support City services through a portion of real estate taxes and other user fees. Considering all City services on the one hand, and taxes on the other, which of the following statements is closest to your view? o Decrease services and taxes (If chosen, go to Questions 5) 72 % xxxxx 0 Keep taxes and services about where they are 28% xx 0 Increase services and raise taxes/fees (If chosen, go to Question 6) )3 5. If you feel services should be DECREASED, which services should be decreased? -Not decrease - control spending increases in police dept 6. If you feel services should be INCREASED, which services should be increased? -EDA-Marketing; Recreation-mostly kids-summer ree/community center -City pay more of project costs overall to decrease assessments where impact is more city related as a whole. -Increase services across the board. Staying the same/decreases will only create larger increases in the future. Keep up with inflation/personnel needs. 7. What do you see as the BIGGEST ISSUE facing the City over the next five years? -Commercial/industrial development -Manage growth and preserve the essence of the community -Tax base - lack of commercial business -Potential for stagnant/decreasing property values - Levy limits -New business -Growth -Growth - requires more planning and forward thinking -Expansion of commercial/industrial development and associated infrastructure 8. What do you think should be the City's BIGGEST PRIORITY over the next five years? -Marketing to attract industrial/commercial as well as recreation in the city. Competition is tight in the 81. Cloud metro area - slow industrial/commercial growth in 81. Joseph. -Taxes -Continued growth management -New business -Work on mixture of industriallbusiness vs. residential areas for tax base -Industrial/commercial growth/infrastructure - 3 areas: industrial park, CSAH 2 realignment, downtown business redevelopment 9. Do you feel the property tax rate is a fair rate? If not, should the rate increase or decrease? -Fair rate - do not raise much next year - keep to 2% overall increase. -Fair . -Fair -Decrease _ Fair - budget put together cooperatively with a lot of thought - if it is determined to increase the tax base - would reflect the needs of the community 10. Please list any additional comments or concerns you may have. -Add summer rec in the parks budget -Look at more sidewalks as funded by city along streets -More info on city hall/center -Open for development and impact of development -Managed growth -Keep a fair and comparable tax base to other surrounding cities -Tough times for the next few years - foreclosures - public looking for more hand-outs JLf CITY Of ST. JOSEPH www.cityofstjoseph.com DATE: July 18, 2007 Administrdtor Judy Weyrens MEMO TO: St. Joseph Economic Development Authority FROM: Cynthia Smith-Strack, Municipal Development Group RE: MdYor Richdrd Cdrlbom Background As you are aware McComb Group presented a draft market research study to the City Council, EDA, CSB and Chamber representatives last Wednesday, July 11th. Several comments/questions have arisen and are proposed to be forwarded to McComb Group for additional information. McComb Group Marketing Study Draft Councilors Steve Frdnk Al Rdssier Renee Symdnietz Ddle Wick Attached is a current list of questions/comments to be forwarded to McComb. Action: If EDA members have requests for information/clarification or comments on the study to be included in the memo please advise. lb 2." College Avenue North. PO Box 66s . Sdint. Joseph, Minnesotd ,,6n4 Phone j2.0.j6j.72.01 FdX j2.0.j6j.Oj42. DATE: July 18, 2007 Jim McComb, McComb Group, LTD. MEMO TO: FROM: City of St. Joseph Draft Market Study - City of St. Joseph RE: City staff, elected/appointed officials, EDA members and City Consultants have had an opportunity to review the draft market study in detail and are requesting additional interpretation of data, information and/or clarification on the following issues: Page Number Subject/Heading 1-3 "College Community" 1-4 "Accessibility" 1-5 Summary 1-5 Summary 2-1 Regional Shopping Influence 2-3 Other Competitive St. Cloud Retail Areas 2-5 Final paragraph Requested information/clarification Final statement of first paragraph under heading states "These students have retail and service needs that are not being met by local businesses." Please itemize what exactly those particular retail/service needs are by establishment type. The paragraph included lists transportation corridors in St. Joseph. Please describe the level of impact (if any) the corridors have on the St. Joseph trade area/market. To what degree are transportation corridors pluses or minuses for prospective business establishments? First paragraph includes the following statement: "It should broaden its food service and retail offerings to serve a broader segment of young adults from the St. Joseph trade area." Please clarify what a 'broader segment of young adults from the St. Joseph trade area' means. Final sentence on page "It is extremely important that St. Joseph initiate the planning activities that will permit other businesses in St. Joseph to benefit from this investment when it occurs." Please clarify by adding specific examples of what types of planning activities need to occur to permit other businesses in St. Joseph to benefit from the development of a supermarket. First paragraph states "St. Cloud is a convenient shopping alternative for St. Joseph residents". What can the City, EDA, Chamber or College can do to address this issue? Final paragraph alludes to "young adult-oriented food services in St. Could [that] attract students from the Col/ege of Saint Benedict and Saint John's University." Please define what you mean by 'young adult oriented food services' and how they differ from other types of food services. Are bars/liquor establishments 'young adult-oriented' food services? "St. Joseph retailers are competitive with stores in St. Cloud \\ 3-45 3-45 4-1 Pages and 4-5 Page 4-9 Page 4-9 Pages 4-10 & 4-11 5-1 5-1 Summary Summary Third paragraph 4-3 Economic data Purchasinq Power Purchasing Power Purchasing Power Retail Development Potential Retail Development Potential as well as the surrounding communities. Sf. Cloud, however, presents the strongest competition due to its size, number and wide variety of stores." How can the City, EDA, Chamber & College position themselves and or market themselves to address this 'competition'. "Home purchasers view St. Joseph positively and like its small town atmosphere. Small town, however, is inconsistent with home purchasers' desire for expanded retail and services." Please expound on how is small town atmosphere inconsistent with expanded retail and services? Final sentence on page "A supermarket would improve the prospects for senior housing." How/why will a supermarket improve prospects for senior housing? Does the senior housing have to be within a certain distance from the suoermarket for maximum benefit? 'This extended trade area is served by 1-94, COVnty Road 75 and TH-23, which are major arteries for commuters that work in the St. Cloud Metropolitan Area. County Roads 2 & 133 provide access from the north and south." All of these major arteries with the exception of TH-23 traverse the City, how large of an impact does this have on potential business development? How do we capitalize on all these people drivinq throuqh St. Joseph? "Population and households in the current and supermarket trade areas are growing at rates faster than the Sf. Cloud MSA. . . Adding a supermarket to St. Joseph's commercial area will expand the trade area by about 140 percent. Residents from this expanded trade area represent potential new customers for current and new businesses in St. Joseph. . . Average household income of $65,448 in 2006 in the current trade area is 12.5% higher than the St. Cloud MSA. . . Percentage of households with incomes above $75,000 and 100,000 are consistently higher in the current trade area than the super market trade area and the Sf. Cloud MSA . . . " Presumably these are all attractive attributes of current trade area that we could use to promote further business development. How important are these attributes to most businesses? Is there a core group of businesses that may relv more on these attributes then others, if so which ones? Please define 'purchasinq power'. Third paragraph alludes to expected increases in the current trade area purchasing power for shopping goods. What conclusion can be drawn from the numbers/what do the numbers mean? Are the numbers aood, ok or low? Table 4-8 and 4-9 and written narrative again address increases in purchasing power. What conclusions can be drawn from the numbers/what do the numbers mean? Are the numbers good, ok or low? Section includes the following statement, "St. Joseph's favorable trade are demographic characteristics and population growth rates provide support for retail stores and services that are not currently located in the City." Please identify what specific types of retail stores and services the demographic characteristics and population growth rates support. Bulleted list included on this page identify factors that support retail and service potential in St. Joseph. The factors include J~ 6-18 Summary First paragraph "Market research indicates demand for multiple family development in St. Joseph. It is important to encourage rental apartments to appeal to a broad segment of the rental market." You've provided ample recommendations re: student rental, what are your recommendations for appealing t<:> a 'broad seqment' of the rental market? 6-18 Summary "Housing in the Central Business District or central Sf. Joseph should be focused on student housing, and other young adults." Why? General Various Study finds that student rental of single-family homes is more profitable in St. Joseph than surrounding areas. Study recommends conversion of single-family student rentals to commercial uses. If income potential as student rental is greater than surrounding area it's likely purchase price will be driven up, add to that cost of preparing site (likely demolition) and working within urban development area (specialized construction techniques) the cost effectiveness of development seems to be highly stacked against conversion of rental units. What are your recommendations to make these conversions happen? do)