HomeMy WebLinkAbout2008 [12] Dec 17~ CITY O~ ST. OS~PH
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uuv~.cit)~of stjoseph rom
St. Joseph Economic Development Authority
Meeting Notice
n<In,inisttat<~t Wednesday December 17, 2008
~~~ly ~eytens 3:00 p.m. City Hall
,
M 1. Call to Order.
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2. Approval of Agenda.
Counri~ors
St
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F
k 3. Approval of Minutes.
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tan
Risk S~:hultz a. November 26, 2008
Renee S~~manietz
Bale ~/i~.k 4. Accounts Payable and Financial Report.
a. Approval of Accounts Payable
b. Approval of Financial Reports
i. October 2008
c. Approval of TIF Disbursements
5. Business.
a. 2008 Year End
i. Reimbursements
ii. 2009 Meeting Calendar
b. 2008 EDA Annual Report Draft
c. Technical Inventory -Rental
d. MDG Contract Renewal
6. Board Member Announcements.
7. Adjournment.
zs College i'~~~enue North PO gox 668 Saint ~eseph, ti'linnesota 56374
Phont° 3zo.363.72oi Fax 3zo.3~3 o34z
PLEASE NOTE
THE FOLLOWING INFORMATION WILL BE HANDED OUT AT THE DECEMBER 17T"
MEETING:
1. Copy of MDG invoice.
2. Minutes from November 26'h meeting.
3. Reimbursement forms.
DATE: December 12, 2008
MEMO TO: St. Joseph Economic Development Authority
FROM: Cynthia Smith-Strack, Municipal Development Group
RE: Accounts Payable -November
November Financial Reports
TIF Disbursement 2008 Second Half
A. Accounts Payable:
Following are Accounts Payable for the EDA's Consideration.
Payable To For Fund Amount
MDG, Inc. Nov. Econ. Dev. Service 150-46500-300 $ 2,307.88
Total $ 2,307.88
Action:
A MOTION is in order to approve the Accounts Payable.
B. Financial Report:
November financial reports for the EDA are following. The reports consist of:
1. Monthly Report.
2. Balance Sheet.
3. EDA revenue to date.
4. EDA expenditures to date.
Action:
A MOTION is in order to approve the financial reports.
C. TIF Disbursements
The City has received the second tax settlement from the County. The tax settlement includes
second half TIF payments for TIF 1-3 (Borget) and TIF 1-4 (Gohman/VicWest). Please find
information regarding payments attached.
Action:
A MOTION is in order to approve the following disbursements:
TIF 1-3 Borgert: $10,849.72
TIF 1-4 Gohman: $27,959.78
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City of St. Joseph Minnesota
Tax Increment Financing District No. 1-4 St. Joe Development LLC (Vicwest)
TIF District #110 PID - 84-53470-230
Note Payment Schedule
Payment to: PROJECTED BUDGET
Minnwest Bank ACTUAL PAYMENTS WILL DEPENT ON
ACTUAL TIF AMOUNTS RECEIVED!
Note Details
Amount of Note (starting principal) 643,000
Note Dated 1-Aug-02
Annual Payment Date 15-Dec
Interest Rate 7.50%
Note Pa ment Schedule
Date TIF Received
from Co. Less 10%
Admin. Payment
Year Principal
Pa ment Interest
Pa ment Total
Pa ment Principal
Balance Check
Number Check
Date
Ma , 2003 0
Dec. 2003 0.00 0.00 0.00 643,000.00
Ma , 2004 $ - $ - 2004 -24,112.50 24,112.50 0.00 643,000.00
Dec. 2004 $ 47,314.16 $ 42,582.74 42,582.74 0.00 42,582.74 600 417.26 35171" 12/15/2004
Ma , 2005 $ - $ - 2005 -22,515.65 22,515.65 0.00 600,417.26
Dec, 2005 $ 47,259.54 $ 42,533.59 20,017.94 22,515.65 42,533.59 557 883.67 36635 12/30/2005
Ma , 2006 $ 27,845.92 $ 25,061.33 2006 4,140.69 20,920.64 25,061.33 532,822.34 37592 7/17/2006
Dec, 2006 $ 27,845.92 $ 25,061.33 5,080.49 19,980.84 25,061.33 507 761.01
Ma , 2007 $ 29,716.27 $ 26,744.64 2007 7,703.60 19,041.04 26,744.64 481,016.37
Dec. 2007 $ 29,716.26 $ 26,744.63 8,706.52 18,038.11 26,744.63 454 271.74
Ma , 2008 $ 31,066.39 $ 27,959.75 2008 10,924.56 17,035.19 27,885.23 426,386.51
Dec 2008 $ 31.066.39 $ 27 959 75 1 1,970 26 15 989-49 27 958 75 398,426J6
Ma , 2009 $ - 2009 -14,941.00 14,941.00 0.00 398,426.76
Dec. 2009 $ - -14,941.00 14,941.00 0.00 398 426.76
Ma , 2010 $ - 2010 -14,941.00 14,941.00 0.00 398,426.76
Dec. 2010 $ - -14,941.00 14,941.00 0.00 398 426.76
Ma , 2011 $ - 2011 $ 14,941 14,941 $ - 398,426.76
Dec. 2011 $ - $ 14,941 14,941 $ - 398 426.76
Ma , 2012 $ - 2012 $ 14,941 14,941 $ - 398,426.76
Dec. 2012 $ - $ 14,941 14,941 $ - 398 426.76
Total $ 271,830.85 $ 244,647.77 -55,029 $ 299,677 244,648
'Development Agreement notes: not to exceed $643,000 in principal payments.
" 2004 Note: The increment was not collected in May due to an error in the Auditor's Office. The County fixed
the error and submitted payment for 2004 October 29, 2004.
2005 Note: The payment for the May Tax Settlement was not received by May 15. Therefore the increment
could not be paid.
2008 Note: The city discovered the entire project area classified in the TIF district by the County. The city sent a letter to the county on 8-1-05 to
correct the error to remove 6 PIDs from the district. The city over collected $20,699.49 for the 6 parcels. The city did not return the money
the county to redistribute to all the taxing jurisdictions until June 2008.
2008 Note 2: The discovered the 2005 county administrative charge of $74.52 was not deducted TIF received from the County. Therefore, the city
overpaid Minnwest. The city deducted $74.52 from the July 2008 TIF disbursement to Minnwest.
MUNICIPAL
DEVELOPMENT GROUP, INC.
Date: December 12, 2008
Memo To: EDA Members
City Administrator Weyrens
Memo From: Cynthia Smith-Strack, MDG, Inc.
RE: Year End Items
Background:
It is that time of the year again!
Reimbursement requests (per diem) for the three at-large members of the EDA will
be distributed at the December EDA meeting. The requests must be signed by EDA
members and the EDA Chair.
The annual EDA meeting calendar is attached for your information and future
reference. Please note meetings are always the fourth Wednesday at 3 p.m.
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MUNICIPAL
DEVELOPMENT GROUP, INC.
Date: December 12, 2008
Memo To: EDA Members
City Administrator Weyrens
Memo From: Cynthia Smith-Strack, MDG, Inc.
RE: Annual Report of EDA - 2008
Background:
Attached is a draft report of annual activities of the St. Joseph EDA for calendar
year 2008. The report satisfies a requirement to report annually to the City Council
regarding EDA activities.
Please note 2009 goals need to be discussed specifically.
Action:
Following review and comment a MOTION to authorize submittal of the report to the
City Council is in order.
2008 ANNUAL REPORT OF THE ST. JOSEPH EDA
The St. Joseph Economic Development Authority is required to submit an annual report to the St. Joseph
City Council. The purpose of the report is to highlight EDA activities over the previous year.
2008 APPOINTMENTS:
The following appointments to offices were made at the January 23, 2008 EDA meeting:
Chair: Dale Wick (Council Member, term expires with Council Term).
Vice Chair: Ken Jacobson (At-large representative; term expires 2011).
Treasurer: Carolyn Yaggie-Heinen (At-large representative, term expires 2012).
Secretary: Tom Skahen (At-large representative, term expires 2013).
Member at Large: AI Rassier (Mayor, term expires with Mayoral Term).
MISSION:
The mission of the EDA is to provide a professional municipal economic development program that assists
industrial and commercial development activities which minimize impacts to the environment, transportation
system, municipal water/sewer use, and financial resources for the City of St. Joseph.
CORE FUNCTIONS AND STRATEGIC DIRECTIONS:
The St. Joseph EDA, as a driving force for economic development, pursues the following core functions and
strategic directions:
Organizational Development
The City of St. Joseph has an economic development organizational structure in place. The structure is
prescribed by Ordinance with day to day operation governed through EDA by-laws and administrative
(consulting) staff. The EDA works closely with the Planning Commission and City Council.
Infrastructure Development
If the support system needed to deliver and produce goods and services is not in place, economic
development is unlikely to occur, in this respect the EDA `sets the table' for development. Infrastructure
needed to support economic development includes basic facilities and services (i.e. wastewater, drinking
water, roadways, stormwater, schools, gas, electric, telephony, etc.) and providing for available sites (e.g.
business park development), gateway programs, downtown revitalization programs and speculative building
projects. Since the St. Joseph EDA has since its inception been active in the development of a business
park, the establishment of gateway districts and the pursuit of a downtown revitalization project.
Business Development
Business development efforts center on three general programs: business recruitment, entrepreneurial
development, and retention/expansion.
The St. Joseph EDA has an active business recruitment program including: information on the local business
climate, active lead follow-up, inventories of available properties, business basics and start up information,
business incentive programs, available & current demographic information (i.e. population make-up), general
market data (housing, employment, business mix, market potential, etc.), and information on current and
planned projects including market absorption rates and estimates of current square feet per use.
Efforts to encourage entrepreneurial development are currently a strategy the St. Cloud Economic
Development Authority is actively pursuing. The Partnership and other organizations are working to create
an environment conducive to the development of a strong bioscience -biotechnology hub. At this time the
EDA has not actively pursued specific entrepreneurial development projects. This is a potential opportunity
City of St. Joseph EDA 2008 Annual Report 1
the EDA may explore with the Donald McNeeley Entrepreneurial Center (CSB) or the Anderson Center
(SCSU).
The St. Joseph EDA implemented a Business Retention and Expansion Program in 2006 - 2007. The BRE
program involved personal interviews with several local business owners. The program goal was to identify
time-sensitive issues (e.g. businesses wishing to expand or businesses contemplating leaving the
community), to further rapport with the business community, and to identify local business needs. Follow up
from the BRE survey is ongoing. The BRE survey will likely be repeated approximately every three years.
Other business development ideas the St. Joseph EDA could follow up on include tourism related activities.
Workforce Development
Workforce development activities in Minnesota are generally coordinated by Workforce Development
Centers located throughout State. The 47 existing Workforce Development Centers provide service to
anyone transitioning from one job to another, from school to work and from welfare to work situations. The
Workforce Development Centers also provide service to those entering the workforce for the first time.
Services can be customized to meet specific needs of each individual. Workforce development centers have
historically pursued bottom-up (i.e. working with educational institutions to provide relevant education for
employment opportunities expected in the future) and top-down (i.e. working with businesses to educate their
workforce and/or working with businesses to identify types of worker skills needed) strategies in an effort to
link available educational opportunities with business needs.
Market Development
There are two ways a community can bring new dollars in: attract new individuals and/or attract new
organizations (e.g. businesses, non-profits, educational organizations, government, etc). The St. Joseph
EDA has historically focused primarily on attracting new organizations; however, the EDA has continued to
support attracting new individuals to the community as well.
The EDA may wish to undertake a new effort to attract targeted types of individuals to the community.
Additional information and strategies regarding this potential effort is attached for your information.
City of St. Joseph EDA 2008 Annual Report
2008 MEETING DATES:
The St. Joseph Economic Development Authority met 12 times during the year 2008. The meeting dates
were as follows:
FIGURE 1.1
January 23, 2008
February 27, 2008
March 26, 2008
April 23, 2008
May 28, 2008
June 25, 2008
July 23, 2008
August 27, 2008
September 24, 2008
October 22, 2008
November 26, 2008
December 17, 2008
DIVERSIFICATION OF THE TAX BASE:
The following table reflects historic building permit values for commercial and industrial (re)construction:
TABLE 1-1
CITY OF ST. JOSEPH -HISTORICAL
COMMERCIAL 8< INDUSTRIAL CONSTRUCTION
1997 $ 895,000
1998 $ 1,906,000
1999 $ 1,435,000
2000 $ 361,500
2001 $ 593,000
2002 $ 4,687,430
2003 $ 3,461,695
2004 $ 2,708,838
2005 $ 2,790,117
2006 $ 332,000
2007 $ 2,526,000
2008'` $ 3,690,877
Total $ 25,387,457
` Total building permit value through November 2008.
The following summary and chart indicate the progress toward the EDA's goal of diversifying the tax base:
City of St. Joseph EDA 2008 Annual Report
TABLE 1-2
Estimated Annual Increase in Commercial/Industrial
Taxes Paid For All Jurisdictions
YEAR CITY COUNTY SCHOOL STATE MISC.
1997 $ 5,592 $ 4,905 $ 5,500 $ 6,303 $ 245
1998 $ 16,242 $ 14,248 $ 15,976 $ 18,306 $ 196
1999 $ 12,995 $ 11,400 $ 12,783 $ 14,647 $ 44
2000 $ 2,909 $ 2,552 $ 2,862 $ 3,279 $ 70
2001 $ 4,611 $ 4,045 $ 4,536 $ 5,197 $ 637
2002 $ 42,144 $ 36,971 $ 41,455 $ 47,500 $ 476
2003 $ 31,528 $ 27,658 $ 31,012 $ 35,535 $ 1,753
2004 $ 21,224 $ 20,707 $ 23,218 $ 26,604 $ 357
2005 $ 26,785 $ 22,516 $ 25,134 $ 28,512 $ 382
2006 $ 2,419 $ 2,366 $ 691 $ 2,531 $ 35
2007 $ 23,843 $ 22,916 $ 7,596 $ 25,092 $ 363
2008* $ 33,913 $ 34,027 $ 8,011 $ 37,120 $ 601
TOTAL $ 224,207 $ 204,312 $ 178,775 $ 250,627 $ 5,160
Based on taxes payable 2008
City of St. Joseph EDA 2008 Annual Report
FIGURE 1.2
Estimated Annual Increase City Tax Revenue
Due to Commercial/Industrial New & Redevelopment
2008 PROSPECTS/TECHNICAL ASSISTANCE/COORDINATION
The EDA members and their staff/consultants worked with a number of commercial and industrial
businesses during 2008. Eight new business contacts were made during 2008 and follow up occurred with
18 contacts from previous years. Of the new prospects 75% were commercial/service businesses. In 2007
60% of new leads were commercial while 40% were industrial. In 2006 44% of new leads were commercial
and 56% industrial, the percentage distribution was the same for 2005 leads (44% commercial and 56%
industrial). In 2004, 60% of new contacts were commercial/service establishments and 40% industrial; during
2003 43% of the new contacts were commercial/service businesses while 57% were industrial or
manufacturing businesses. The change in business prospect categories likely reflects the limited availability
of industrial lots and the struggling economy.
Following is a summary of the various contact activities within 2008. Businesses have been identified with a
project number to protect the confidentiality of the company, which is sometimes a concern while they
explore expansion opportunities.
Project 01-E:
This project involves the expansion of a service within the community. MDG has been keeping in touch with
the project contact since 2001. Construction is underway!
Project 02-FF:
This project has been inactive for the past several months but MDG continues to follow up on an occasional
basis. A holiday card will be mailed to this prospect on behalf of the EDA.
Project 03-A:
This group of developers are contemplating a large highway commercial development in an area not yet
annexed into the City. MDG continues to maintain active correspondence with this prospect. These contacts
are now working with Project 07-J. The property owners are currently working to re-draft concept plans as
the request of a Council Member. This project will be impacted by construction of new CSAH 2.
Project 04-H:
This project involves an underutilized commercial mixed use in the Downtown. Exterior maintenance issues
on this building were addressed in 2008. Line drawings for facade enhancement reminiscent of the historic
facade have been created. The property recently changed hands, although it remains in the family of the
initial purchaser.
Project 04-N:
This business is currently a home occupation in an adjacent area. The business has purchased a lot within
Buettner Business Park. The construction timeline is tentatively 2009, although the contact remains open to
a land for building swap. MDG remains in touch with the property owner. A holiday card will be mailed to this
prospect on behalf of the EDA.
Project 04-S:
This project involves a large phased development. A preliminary plat for the initial phase has been accepted,
and final plat approval is conditioned upon execution of a development agreement. Financing of
improvements is an issue with this project.
Project 05-I:
This project moved ahead in 2007 with construction initiated in August. Phase one of the project was
completed in Spring of 2008. Phase two of the project was completed in Fall 2008.
Project 05-F:
The property owner is a party to a PUD agreement with Project 01-E. Construction of a facility is currently the
subject of discussions with the City. The project may be planned for 2009 or delayed significantly. Additional
development of this PUD site is underway and a third component in process.
City of St. Joseph EDA 2008 Annual Report 5
Proiect 06-B:
This project involves investment in commercial property within the City of St. Joseph. The project is on hold
pending an upturn in the economy. Strack remains in contact with this prospect.
Proiect 06-E:
This project involves starting a new restaurant within the City. This prospect is currently working with an
existing business establishment to start up a restaurant.
Proiect 06-H:
This project involves the development of commercial/residential property adjacent to CSAH 75 and
Millstream Park. Strack remains in active contact with this representative, especially as it relates to CSAH 2
construction and the CPU.
Project 06-I:
This project involves the marketing of a 30-acre parcel adjacent to 20~h Avenue. The property owner and his
real estate managers continue to occasionally discuss the project. The property remains on the market and
is guided toward commercial use. Strack was in contact with the property owner numerous times in
September regarding a potential donation of property to the City for a recreational related use. The property
owner is also discussing the matter with the City of St. Cloud.. On going dialogue remains. Strack most
recently met with this property owner in December of 2008.
Proiect 07-A:
This project involves the relocation of an industrial supply company. The project was delayed until 2009 by
the Company. MDG continues to follow up with the project representative. Aholiday card will be mailed.
Proiect 07-C:
This project involves a property owner's desire to establish a presence in the City of St. Joseph somewhere
in the vicinity of downtown. This project was extremely active one year ago but has since cooled. Strack
continues to remain in touch with the project contact on an occasional basis.
Project 07-D:
This project involves a potential 1031 exchange of existing acreage guided toward industrial development
with existing acreage guided toward commercial development. MDG remains in occasional contact with the
project representative. Aholiday card will be mailed.
Proiect 07-G:
This project involved the expansion of an industrial facility to the City of St. Joseph. The project
representatives met several times with MDG regarding extension of services to a currently unserviced area
within the corporate limits. The initial project was abandoned due to the cost of utility extension but
discussion remains on other potential sites.
Proiect 07-J:
This project has resulted from active outreach to owners of potential industrial property. MDG has met and
corresponded on several occasions with this project's leaders. This will continue to be an evolving and
expanding project over the next several years. The EDA has recommended and continues to work on
proactive involvement in infrastructure to this area. This project is working with Project 03-A.
Proiect 08-A:
This project involves a development in close proximity to the downtown. The developer continues to refine
development plans. Discussion remains on-going.
Proiect 08-B:
This project involves the construction of a new service facility within the corporate limits. Strack remains in
routine contact with the project representative. Strack most recently met with the project contact in
December.
City of St. Joseph EDA 2008 Annual Report 6
Project 08-C:
This local business owner contacted the City after learning of the BFA grant opportunity. Strack continues to
discuss a potential downtown project with the business owner.
Project 08-D:
This project involves facade and landscaping enhancement at a commercial structure located in the B-2
Highway Business District. BFA assistance has been requested and approved by the EDA, however, the
property owner did not seek reimbursement under the BFA program.
Protect 08-E:
This project involves facade of a commercial structure located in the B-2 Highway Business District. BFA
assistance has been requested and approved by the EDA. No further action has occurred on this project.
Project 08-F:
This project involves the expansion of a successful business located in the industrial park which started out
as a home occupation. The business owner met with Strack on several occasions in early fall. Two potential
sites identified for the business owner including swap with Project 04-M. Strack remains in contact with this
project contact.
Project 08-G:
This project involves the potential redevelopment or sale of an existing site and building. Strack met with the
property owner on numerous occasions in early fall. Discussion remains on-going.
Project 08-H:
This project involves facade of an industrial structure located adjacent to CR133. BFA assistance has been
requested and was recently approved by the EDA.
City of St. Joseph EDA 2008 Annual Report
DOWNTOWN REVITALIZATION PROJECT
The "Let's Go Downtown" Revitalization Project continued in 2008. On March 26, 2008 a "Celebration Of
Progress" meeting was held to remind project participants of the progress made to date. Highlights include:
* Program in Place for Three Years
* 67 Meetings Held
* 47 Volunteers Participated
* 4 Work Groups Formed
* Market Study Completed
* Design Guidelines Developed and Implemented
* Branding of Project as "Let's Go Downtown"
* Architectural Grant Program established
* Financial Incentives Identified
* Marketing Plan Started.
* New Development: Millstream
* Work Plan Developed/Implemented
* Web Site Page Established
* SWOT Analysis Conducted
* Meetings with Property Owners
* Short Term Goals Established
* Long Term Goals Established
Following the meeting discussion regarding the continued relevance of the four work groups was discussed.
Most work group members indicated a modification of the project was needed. That modification was
identified as a defined goal/task oriented approach. To those ends, a listing of all short and long term project
goals was mailed to each project volunteer. Volunteers were asked to prioritize short and long term goals.
The results of the survey of volunteers are illustrated in Table 1-3 on the following page. The top ranked
short term goal was installation of planters, benches and trees on both sides of the downtown streets. The
top ranked long term goal was to pursue buffering the Parish parking lot with bushes/trees, benches, or a
fountain or an information kiosk.
Since surveying volunteers regarding short and long term goals, the EDA has spoke with a professional
landscaper regarding the incorporation of planters, benches, and trees within the entire downtown.
In addition, the EDA has contacted Father Joseph Feders from the Church of St. Joseph regarding the
potential to create a small, public space on a portion of the Church parking lot. The idea is to create a public
space which incorporates a fountain, an information kiosk, benches, gathering space, and plantings. Such an
area could provide a respite for shoppers, an area for picture-taking for weddings, public space for 4`h of July
festivities/performances, and an area for holiday displays. Father Feders has noted the Parish is currently
planning for future space needs and is not in a position to partner with the City at this time.
City of St. Joseph EDA 2008 Annual Report
TABLE 1-3
Priority
Rank
Goal/Work Item Scale of 1 to 5 Results
1 =highest priority;
5 =lowest riorit
SHORT TERM GOALS Median Average Mode
Install plaques showing the history of buildings along Minnesota street. The plaques
could provide pedestrians with a reason to stop in downtown and take an interest in 1 2 3 4 5 2.00 2.55 2
buildings and activities inside.
Adopt a consistent awning design for Minnesota St. and College Avenue providing a
visual connection between buildings in the downtown area. What's most important is 1 2 3 4 5 2.00 2.27 1
that there is the intent to visually link awnings in some way.
Attach banners (with the Let's Go Downtown! logo) on decorative lampposts along 1 2 3 4 5 2
4
Minnesota Street and College Avenue, perhaps extending to Wobegon Trail Center. .00 2.
5 3
Install directional signage (with the Let's Go Downtown! logo) coming from Highway 1 2 3 4 5
94 as well as Hwy 75. 3.00 2.73 4
Install planters, benches and trees on bath sides of the downtown streets. 1 2 3 4 5 1.00 2.00 1
LONG TERM GOALS
Refocus the'Downtown' from areas abutting Minnesota Street and College Avenue
to the alley between Mn. Street and Ash Street as suggested by the Mn. Design 1 2 3 4 5 3.00 3.18 3
Team.
Relocate the power/telephone cables; if poles or support structures are needed, 1 2 3 4 5 1.00 2
45 1
choose the most visually interesting type. .
Address vehicle and pedestrian separation downtown...perhaps with wider 1 2 3 4 5 1.00 2.00 1
sidewalks or planters or bushes.
Install traffic-calming bump-outs in the corridor between the church and the alley and
mark with planters or a pedestrian crossing. Consider painting (art) on roadway 1 2 3 4 5 4.00 3.73 5
surface for added interest and slowing of traffic.
Require dressing up of rear facades behind Mn. Street buildings. Require rear
parking spaces be dressed up with planters and some unifying "back yard" elements 1 2 3 4 5 2
such as benches, a fountain or a flagpole as suggested by the Minnesota Design .00 2.55 2
Team.
Pursue buffering the Parish parking lot with bushesltrees, benches, or a fountain or 1 2 3 4 5 1.00 1.80 1
an information kiosk.
Install a connection between both sides of Mn. Street with an arch over the alley
between Loso's and the old First State Bank Building and a corresponding
' 1 2 3 4 5 2
00 2
40 2
s visit
feature/arch across the street as envisioned by the Minnesota Design Team .
.
many years ago.
Investigate diagonal parking on Minnesota Street to see if trade-offs can be found 1 2 3 4 5 3
00 2
82 4
(e.g., less parking on the Church side and more parking on the commercial side). .
.
Create additional off-street public parking spaces in the downtown area. 1 2 3 4 5 2.00 2.45 1
Install a'pocket park' or'town square' adjacent to Mn. Street or College Avenue. 1 2 3 4 5 2.00 2.45 2
Median =The middle number of a group of numbers; half values greater, half of the values lesser
Average =Arithmetic mean -total of all numbers divided by the number of numbers
Mode =Number occurring most frequently
City of St. Joseph EDA 2008 Annual Report
Use of the EDA's business fagade architectural grant program was authorized for five projects: Daisy a Day
Floral, Gohman Construction, Bo Diddley's Deli, Kurtcrete, and Scenic Specialties. While five applications
were approved only one was utilized as of December 1, 2008. Two of the remaining four projects are on-
going, the other two are likely to not request reimbursement for architectural design. All five applicants
indicated a desire to utilize funds for actual fagade improvements. The EDA has discussed the potential
modification of guidelines to allow use of the matching grant for actual fagade improvements. The EDA
included a request for such funding through the 2009-2013 capital improvement program.
The EDA formed a `design team' as an attempt to gain `buy in' from downtown property owners by offering
free storefront design service. The 'design team' included a local draftsperson, the Building Official, property
owners, and the EDA Director. The local design team met with the owners of two commercial properties
(Dehler-Linnemann Building and Bo Diddleys Deli) to design potential fagade improvements/enhancements.
The line drawings have been purchased and are available for marketing and display purposes.
City of St. Joseph EDA 2008 Annual Report 10
CSAH 75 RENEWAL PROJECT
The EDA Board continued to discuss this item in occasionally in 2008. The item was tabled and occasionally
reviewed due to input from the City Council and requested prioritization of EDA efforts. This project involves
the future of the CSAH 75 corridor in terms of uses, potential for redevelopment, and aesthetics. Potential
redevelopment areas adjacent to the CSAH 75 were incorporated in the 2008 Comprehensive Plan Update
(CPU) as follows:
FIGURE 1.3
Potential Revitalization/Redevelopment Areas
Through the CPU process, the EDA and City made a conscious decision to focus redevelopment efforts on
commercial and residential areas/parcels in established areas of the City, including those areas illustrated in
Figure 1.3.
The City/EDA acknowledges revitalization efforts and resources such as staff time and financial incentives
may have a higher rate of return if combined with private investment with in identified redevelopment areas.
Therefore, public-private partnerships resulting in revitalization/redevelopment of areas included in Figure 1.3
are desired. The City/EDA acknowledge potential barriers to successful redevelopment efforts may include
neighborhood opposition, fear of increased density or change, zoning standards (e.g. parking, lot size and
setbacks), and increased costs for specialized development.
Other areas identified as conducive to redevelopment within the City of St. Joseph include the entire Central
Business District and re-use/conversion opportunities within the Central Business District that may be
forthcoming due to vacancies within student rental houses resulting from a change in on-campus residency
requirements initiated by the College of St. Benedict and St. John's University.
City of St. Joseph EDA 2008 Annual Report 11
CONVERSION OF STUDENT RENTALS/CHANGE IN CAMPUS RESIDENCY
REQUIREMENT
The City Council at a January goal setting retreat requested the EDA lead the City's response to a change in
campus residency requirements for the College of Saint Benedict and Saint John's University. Beginning with
St. John's 2008 freshman class (i.e. Class of 2011) and St. Benedict's 2009 freshman class (i.e. Class of
2012) most students (i.e. 90%) will be required to live on campus for all four years of their educational
experience.
The potential impact of the residency change is not fully understood at this point. In an attempt to be
proactive regarding the change, the EDA has:
1. Contacted the following entities regarding project partnership and/or advice:
* MHFA -Central Region Homeownership Contact.
* University of MN. Humphrey Institute Center For Urban and Regional Affairs (CURA)
regarding Community Assistantship Program (CAP) and economic impact study.
* Stearns County HRA.
* DEED: Redevelopment grant and SCDP.
* Central Minnesota Community Land Trust (Central Minnesota Housing Partnership).
2. Held discussion on the following:
* Whether or not the City should examine the economic impact of the residency requirement
change. The EDA given feedback from potential project partners and student rental land
owners has realized a need to determine the economic impact of the change in campus
residency requirement.
* What organization or entity should spearhead efforts to capitalize on conversions of rental
units. The EDA has determined it should initially spearhead such an effort.
* What organization or entity should spearhead efforts to complete an economic impact study.
The EDA has met with SCSU Economics Profession Dr. Mary Edwards and two graduate
students regarding the facilitation of such a study. The EDA has agreed to fund the $6,200
study provided the CSB/SJU disclose certain data elements and funding participation by
student rental unit property owners is sought.
* What organization or entity should be responsible investigating conversion/transition of units.
The EDA has determined it should initially create a technical inventory or student rental units
and potential conversion options. This effort has been completed but is being refined for
presentation to the Planning Commission, property owners, and other stakeholders.
* What, if any, changes should be made to land use: e.g. convert to owner occupied homes,
convert to MF or senior housing options, convert to public uses, convert to
business/commercial uses, or some combination of the previous. What areas should be
guided to what future use. The EDA has initiated a technical inventory complete with
potential conversion options. After the inventory is further refined, ideas will be presented to
rental property owners, the Planning Commission, and other stakeholders for input and
analysis.
* Who are potential partners. The EDA has identified the following project partners: the City,
EDA, College/University, MHFA, Stearns County HRA, and Central Minnesota Community
Land Trust.
* Resources for conversion of uses. Financial assistance: DEED Redevelopment Grant
Program, DEED Small Cities Development Program Grant, MHFA programs, low-interest
energy loans through Department of Commerce, federal Troubled Asset Recovery Program
(TARP) foreclosure funds. Other ideas include Investigating the potential to establish a
program where college/university assist with down payments and/or provides staff bonuses
for moving into student rentals vacated as a result of residency change.
Most recently the EDA requested MDG compile maps of the Central Business District illustrating potential
commercial conversions overlaid with buildings surveyed and found to be in poor or fair condition. The goal
City of St. Joseph EDA 2008 Annual Report 12
is to further rental unit conversion commensurate with the "Let's Go Downtown" revitalization effort. The
overlay map follows.
FIGURE 1.4
Student Rental Units in CBD by Condition
Potentially Eligible for Conversion to Commercial Uses
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City of St. Joseph EDA 2008 Annual Report 13
ADDITIONAL PROJECTS:
The St. Joseph EDA actively pursued other projects during 2008.
Preparation/Maintenance of Information for Distribution to Development Leads
The EDA created and distributed information to development leads as requested throughout the year. The
information includes a summary of development activity based on City data and commercial/industrial sales
based on data from the Stearns County Assessor's Office. All data reflected is part of the public record. The
information is available on the City website.
A summary of sample information created follows and includes:
1. A summary of current residential development activity, phasing and resulting increases in population.
2. A summary of historical commercial development activity.
3. A summary of residential building permit information from 2000 to 2006.
4. A summary of sales of vacant commercial acreage.
5. A summary of sales of commercial facilities.
6. A summary of sales of vacant industrial acreage and industrial facilities.
Preparation of Inventory of Available Commercial and Industrial Land and Buildings for Sale or
Lease.
The EDA has maintained a database of information regarding available commercial and industrial properties
(for sale or lease). The database contains GIS information that is available with overlays of existing urban
facilities/infrastructure, orthophotos, topography, soil types, wetlands and more. The data is tied to Stearns
County's GIS database and includes information such as names of property owners, property identification
numbers, estimated market values, property addresses and more.
The EDA file includes electronic copies of:
1. Vacant commercial and industrial parcels available for sale within the community.
2. Commercial and industrial facilities available for sale within the community.
3. Commercial and industrial facilities for lease within the community.
4. A parcel by parcel inventory/examination of all properties within the B-1 Downtown Commercial
District zoning classification.
Participation in the Comprehensive Plan Update
The EDA reviewed draft Comprehensive Plan elements in March, April, May, June, and October of 2008.
Feedback from EDA review was forwarded to the Planning Commission. The EDA specifically reviewed
commercial industrial land use components of the Comprehensive Plan.
Participation in the Master Park Plan
EDA consulting staff was pleased to offer comments regarding parks/open space plans from an economic
perspective, including the inclusion of a mini park within the Central Business District.
City of St. Joseph EDA 2008 Annual Report 14
Promotion/Offering of Financial Incentives Available
The EDA continues to offer the following incentives to qualified applicants.
Tax Increment Financing
MDG TIF eligibility requirements with three prospects in 2008. No formal applications for the use of tax
increment financing were filed in 2008. Two of the inquiries proposed use of redevelopment TIF in
rehabilitating underutilized parcels within the Downtown, the other economic development TIF. T
Tax Abatement
EDA staff reviewed tax abatement as an incentive with several business prospects this year.
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 TIF
participation is mandatory). The amount of the tax abatement available depends on a number of factors,
including, but not limited to the financial need of the company and participation by County and school
entities. The term of tax abatement is up to twenty years depending on a number of variables.
Revolving Loan Fund
The revolving loan fund, 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 $52.075. EDA staff discussed the
RLF with several few business contacts however no formal applications for assistance were received. The
fact the incentive is a loan program is thought to impact its effectiveness.
Minnesota Community Capital Foundation
The City of St. Joseph/EDA has access to the Minnesota Community Capital Foundation (MCCF) through
Stearns Electric and Great River Energy. Throughout the year EDA staff have distributed information to
several development prospects regarding the fund. Through the MCCF Great River Energy is able to offer
up to $1,000,000 to qualified projects for a variety of uses (including working capital) on reoccurring basis.
Development leads have not been interested in the MCCF perhaps due to the absence of interest savings.
St. Joseph Business District Facade Architectural Design Grant Program
The EDA/City Council created this grant program in 2007. Requests from five business owners were
processed in 2008 (approved). The current program provides a matching grant for actual design costs, up to
$1,000 per property address, to commercial property owners and/or merchants planning exterior building and
landscape improvements. Implementation of the BFA pilot program has illustrated a need to fund not only
architectural drafting but also actual construction. The $1,000 grant was sufficient to entice business owners
but it is evident expanding the use of funds to include actual construction would improve the program
incentive.
Bioscience Zone Acreage
St. Joseph has been allocated bioscience incentive program acreage through the Minnesota Department of
Employment and Economic Development. Information regarding the program is available on the City
website.
City of St. Joseph EDA 2008 Annual Report 15
PROGRESS REPORT: GOALS FOR 2008:
Following were EDA goals for 2008 with updates on progress toward goals and plans for 2008.
1. Proactive participation with the Planning Commission, Park Board and City Council in preparing for
the County's construction of the CSAH 2 to CSAH 3 roadway segment in 2009. Proactive
participation lead by the EDA may include, but is not limited to, discussions of the timing of extension
of collector roadways and municipal utilities for servicing future commercial/industrial areas within the
general area of the new roadway.
PROGRESS: The concept of proactive participation for the extension of collector roadways and
municipal utilities for servicing future C/1 areas in the general vicinity of the new County roadway was
discussed at a City Council/Department Head/Consultant meeting on behalf of the EDA in February
of this year. The City Council indicated this was a primary focus for 2008 (see attached memo -
direction from City Council Regarding 2008 Goals).
The concept of proactive extension has been included in the updated economic development section
of the Comprehensive Plan.
In addition, the concept was discussed with the EDA in January of 2008 as a general area of practice
of an ED Professional (one of five) under the general heading of `infrastructure development' (see
attached memo).
The concept of proactively extending utilities and collector roadway is included in the EDA CIP
request approved at the July meeting.
The topic of proactive extension of utilities/collector street to service future industrial/commercial
areas adjacent to the new County roadway has been discussed at numerous department head
meetings. The following plan of action was developed by department heads and shared with the
EDA in February:
• Meet with Stearns County Engineer regarding urban corridor design for new roadway (asap).
• Establish future land use for impacted area through Comprehensive Plan (by mid-summer).
• Initiate sanitary sewer and drinking water master planning for future service area (immediately following future
land use is established in Comp Plan, completion by Fall of this year).
• Feasibility studies for sewer and water extension to new construction corridor (this fall).
• Feasibility study for construction of a community collector roadway to service corridor (this fall).
The proactive extension of centralized sewer to the areas adjacent to the new county road
necessitated inclusion of the area west of I-94 in the land use chapter of the draft revised
comprehensive plan update.
2. Examine how to proactively market St. Joseph opportunities within greater Minnesota.
PROGRESS: The following information was added to the City's website. The EDA reviewed and
approved the additions:
• Let's Go Downtown Page featuring: Design guidelines (downloadable), McComb Group
market study (available for downloading), event calendars, & information on BFA grant
including downloadable application form.
Business Recruitment Page featuring: Information on Bioscience Zone designation,
direct email link to EDA Consultant, business climate information, financial/technical
assistance available, information on local educational facilities, information on local
quality of life amenities, and links to the following: SCAEDP, St. Joseph Chamber, St.
Cloud Chamber, Anderson Entrepreneurial Center SCSU, Donald McNeely
Entrepreneurial Center (College of St. Benedict), Mn. Department of Employment and
City of St. Joseph EDA 2008 Annual Report 16
Economic Development, a Guide to Starting a Small Business, and Minnesota regional
market data.
Proactively participate in activities espoused by the St. Cloud Area Economic Development
Partnership.
PROGRESS: Information on available properties is updated/reviewed quarterly by Strack, please
note other parties are able to add listing information re: St. Joseph properties as well. EDA
Chairperson Wick represents St. Joseph at SCAEDP meetings.
4. Host listening/working sessions with business owners regarding opportunities provided by or
available through the EDA.
PROGRESS: Copies of Downtown Design Guidelines were mailed to all downtown business owners.
Information on the BFA grant program was included in the March 22"d edition of the city newsletter
and mailed to all business owners in late March. The downtown revitalization project was redirected
into a series of meetings with local property owners in a `design team' type arrangement. Discussion
regarding additional meetings is a topic on the August EDA agenda.
5. Examine and advise the Planning Commission and City Council regarding future neighborhood
commercial nodes adjacent to higher traffic intersections (i.e. intersections of collector and/or arterial
streets) primarily servicing residential areas (e.g. near new school and adjacent to 20th Avenue).
PROGRESS: This goal is being addressed through the Comprehensive Plan Update process. The
EDA discussed land use goals/policies and reviewed proposed future land use concepts at the
March, April, May, and June EDA meetings. EDA comments were delivered to the Planning
Commission at monthly meetings.
6. Examine the feasibility of removing impediments to renewal efforts within aging portions of the CSAH
75 corridor.
PROGRESS: In 2006 the EDA compiled information related to the unique challenges/opportunities
presented to potential development/redevelopment projects in the corridor. Among items the EDA
initially discussed were: (1) level of financial assistance offered to establishments conducting
redevelopment efforts of a sizable scale (2) participation by the EDA in master planning the corridor
and (3) participation by EDA in securing first right of refusals for individual properties as a means of
assisting with the combining of smaller lots into one larger lot more conducive to commercial
development.
In January of 2007 EDA Board Members discussed feedback the joint meeting with PC and CC
members held the previous fall. Following discussion, the EDA directed MDG to contact the owners
of rental property in the renewal corridor regarding their thoughts on redevelopment potential. In
addition, input from residents/property owners regarding potential interest in joining a renewal effort
in the Hwy. 75 corridor was sought. Comments received from property owners revealed a lack of
interest in a renewal project with some owners of homesteaded property in the area being opposed
to sale of property. Additional concerns were voiced that any new commercial
development/redevelopment proposed could saturate the market. The EDA shifted this project to a
long-term goal and continues to occasionally discuss the concept.
In January 2008 the EDA again discussed maps and potential opportunities for (re)development in
the Central Business District and the redevelopment area. The EDA requested Strack include the
information distributed to City Council Members prior to an organizational retreat with the City
Council, Department Heads and consultants. The information was presented to the Council at the
City of St. Joseph EDA 2008 Annual Report 17
retreat. Council indicated downtown uses and potential conversion of student rental homes were
priority over CSAH 75 redevelopment.
7. Examine the potential economic impacts of a four-year residency requirement at CSB/SJU and
function as information resource regarding economic impact of four-year residency. Work with City
leaders and administration to form a study group whose purpose is twofold. First, the study group
could establish to the best of their ability factual information regarding afour-year residency
requirement and distribute such information to decision makers and the public. In addition the study
group would encourage vibrant dialogue and provide a mechanism for sharing information between
decision-makers and stakeholders.
PROGRESS: This goal was discussed at a City Council/Department Head/Consultant meeting on
behalf of the EDA in February of this year. The City Council indicated this would/could be a priority,
if/when confirmation of residency requirement was obtained.
The issue was addressed at length as part of the future land use plan contained in the CPU. The
goal is included in the draft Housing element of the 2008 CPU.
The EDA's CIP request included $30,000 in 2009 for: (a) identification of potential parcels suitable
for public parking and/or park usage within the CBD, (b) creation of a public parking policy including
funding of such a provision, and (c) purchase of first rights of refusal for properties if identified as
crucial to the provision of public parking and/or park usage within the CBD.
8. Participate in updating of the Comprehensive Plan.
PROGRESS: The EDA has reviewed draft Comprehensive Plan elements in March, April, May,
June, and October.
City of St. Joseph EDA 2008 Annual Report 18
2009 EDA GOALS
The EDA has initially established the following goals for 2009. The objectives/strategies will be further
defined in the months of January and February, 2009.
• Convert BFA to allow use of funds for construction in addition to arch. services.
• Economic impact study residency change
• Master plan for conversion of rental units by unit. Participation of property owners, PC, CC, and Park
Board.
• Establishment of flower containers & trash receptacles in DT.
• CSAH 2 roadway plans gateway to downtown.
• Proactive extension of roadway & utilities to new CSAH 2.
• Business retention & expansion visits.
City of St. Joseph EDA 2008 Annual Report 19
MUNICIPAL
DEVELOPMENT GROUP, INC.
Date: December 12, 2008
Memo To: EDA Members
City Administrator Weyrens
Memo From: Cynthia Smith-Strack, MDG, Inc.
RE: Conversion of Rental Units
Background:
At the November EDA meeting the EDA began reviewing a technical inventory of all
student rental units within St. Joseph. Following initial review of the inventory, the
EDA directed the preparation of simple maps of the CBD illustrating locations of
student rentals with potential for conversion to commercial use and units judged to
be in poor or fair condition. Poor condition was defined as a unit which appeared to
have exceeded its useful life. Units in fair condition were those that appeared to
have multiple major maintenance needs (i.e. new siding, windows, re-roofing).
Attached please find three illustrations of the CBD. The first is the location of rental
units thought to have potential for conversion to commercial uses. The second is of
buildings in poor (green) or fair (blue) physical condition. The third is an overlay of
both maps.
In addition, the EDA authorized SCSU to conduct an economic impact study
regarding a change in on-campus residency requirements. The approval of the
study was contingent upon CSB/SJU allowing access to crucial information items.
Board Member Heinen agreed to approach CSB/SJU regarding sharing of
information. An update is expected at the December meeting.
Finally, the EDA indicated a need to meet with rental property owners regarding
financial participation in the study. The rental owners have not yet been contacted
regarding pending outcome of information sharing by CSB/SJU.
Action:
Review, comment, and establishment of next tasks.
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MUNICIPAL
DEVELOPMENT GROUP, INC.
Date: December 12, 2008
Memo To: EDA Members
City Administrator Weyrens
Memo From: Cynthia Smith-Strack, MDG, Inc.
RE: MDG Contract
Background:
It is that time of the year again, round two!
The annual contract for professional services is up for renewal. For 2009 the City
Council has budgeted for apart-time EDA professional staff position.
A proposal is attached for review.
~~
MUNICIPAL
DEVELOPMEM GROUP, INC.
December 12, 2008
City Administrator Weyrens
Mayor, City Council and St. Joseph EDA
25 College Avenue, PO Box 668
St. Joseph, MN 56374
Dear Administrator Weyrens, Mayor Rassier, and Council Members
Over the previous seven and one-half years we have enjoyed working with the business community, City
Council, EDA, City Staff, and citizens on various economic development projects as the City's Economic
Development Consultant. Although we are faced with the challenge of a struggling economy, we continue
to see tremendous potential for continued commercial and industrial growth and redevelopment in St.
Joseph's future. In 2008 we have had the opportunity to work with the City, EDA, citizens, and a number
of business contacts on current plans/projects and those that are being planned for 2009. We feel
consistency in business contact and development is important.
In December 2007, we entered into cone-year contract for economic development consulting services for
calendar year 2008. We are very interested in continuing to assist the EDA and City with economic
development projects. Our current contract rate is $1,925 for 35 hours of service per month (420 hours
per year) or $55.00 per contracted hour. Thus far in 2008 MDG, Inc. has provided 407 of the 420 hours of
contracted service.
The preliminary 2008 EDA budget holds the line in the `professional services' line item for consulting
services. A total of $28,000 was included in the preliminary budget for EDA staffing services.
We welcome the opportunity to extend the contract into calendar year 2009. We understand the City is
has budgeted for a staff level Community Development Director position to be filled in 2009. We welcome
the opportunity to provide service until the staff member begins his/her tenure! We also welcome an
opportunity to assist the City and the full time staff member through atwo-month transitional period as per
the EDA's suggestion. MDG would certainly welcome an opportunity to assist the City with planning and
economic development activities on an as-needed hourly basis thereafter.
Our 2007 and 2008 contract rate remained steady at $55/hour or $1,925/month. MDG, Inc. proposes a
slight increase in the contract fee for calendar year 2009 which we would pledge to hold through 2010 as
well. To assist with economic development activities for the calendar year of 2009, we propose a contract
rate of $60/hour or a monthly contract rate of $2,200/month for 35 hours of service including a half hour
lunch each week. The contract amount does not reflect reimbursable expenses including mileage (at
federal reimbursement rate), long distance calls/faxes, etc. Please note our 2009 non-contract hourly rate
is $90/hour for principal and $75/hour for associate services.
If you have any questions regarding our current or future services, please do not hesitate to contact me at
888-7MDG-INC (888-763-4462) or at cstrack@municipaldevelopmentgroup.com.
Thank you again for your consideration!
Cynthia Smith-Strack, Principal
Municipal Development Group, Inc.
25562 Willow Lane • New Prague, MN 56071 • (952) 758-7399 • Fax: (952) 758-3711 •
staff@municipaldevelopmentgroup.com • www.municipaldevelopmentgroup.com