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HomeMy WebLinkAbout1997 [11] Nov 12Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met in regular session on Wednesday, November 12, 1997 at 8:00 a.m. in the St. Joseph City Hall. Members Present: Chair Ken Hiemenz. Members Mike Deutz, Bruce Gohman, Ross Rieke (arriving at 8:15 a.m.). EDA Director Chad Carlson. Recording Secretary Judy Weyrens. Others Present: Ellen Wahlstrom, Leo Buettner. Approval of Minutes: Gohman made a motion to approve the minutes of the October 8, 1997 as presented; seconded by Deutz. The motion passed unanimously by those present. Director Reports Marketing Brochure: Carlson reported that he has contacted the designers hired by the Star City Commission for the development of a City brochure. The Board requested to review the proof of the brochure for additional comments. Railroad Crossing: Hiemenz read a letter he received with regard to the City receiving additional railroad crossings. The letter indicated that all correspondence needs to go through the Washington DC Office. Board Members discussed the importance of receiving an additional crossing for the development of the Industrial Park. Hiemenz and Carlson will pursue this matter further. Financing Consultant: Carlson reported that Ed Tschida is interested in assisting the City with developing financial incentives such as TIF. Tschida is willing to make a presentation to the Board with regard to his services at no charge. The Board agreed to have Tschida make a presentation to the EDA Board at the December meeting. Manufacturer's Week: Carlson presented the Board with a certificate from the Governor's Office acknowledging City participation in Manufacturer's Week. Carlson hopes to expand the business displays in 1998. Zoning Ordinance: The Planning Commission is updating the Zoning Ordinances as listed in the St. Joseph Code of Ordinances. Carlson questioned if the Board would like to have input during this process. The Board requested the Planning Commission allow the EDA to have input on Zoning Ordinances that deal with Commercial or Industrial regulations. Hiemenz reported that at a recent Mayor's Breakfast he received positive feedback on Chad Carlson. Financial Report: Weyrens reported that the by-laws of the EDA require the Board to receive a Financial Report. Therefore, the Board needs to determine the frequency and type of report to be received. After discussion Gohman made a motion to receive a detailed financial report quarterly. However, should the level of activity increase the financial reports will be reviewed on a more frequent basis. The motion was seconded by Rieke and passed unanimously. DTED Conference: Carlson presented a brochure for an upcoming development seminar sponsored by the Department of Trade and Economic Development to be held December 10 -December 11. Gohman made a motion authorizing Carlson and one Board Member to attend the conference; seconded by Rieke and passed unanimously. Industrial Park: Carlson reported that the City of St. Joseph has received a $5,000 grant from the Central Minnesota Initiative Fund for the design work of the Industrial Park. The grant is contingent upon the City securing the balance of the project costs - $ 17,000. Carlson stated the City has committed to $ 8,120 and the EDA should request a commitment from Leo Buettner for the balance, $ 9,000. Deutz questioned if the EDA Board was in a position to request a financial commitment from Buettner and development of the Industrial Park is not a given. Gohman stated the Industrial Park will be developed and the EDA needs to work with Buettner to move forward. Carlson stated that the City cannot afford to develop the entire Industrial Park at one time and will need to phase the project. The Board discussed alternatives for developing the Park, including closing the Railroad crossing currently located at County Road 133 and constructing a service road west. The service road would take traffic to County Road 2 and would also provide the much needed second ingress/egress for the Northland Addition. The Board requested Carlson to present this option to the City Engineer for his comments and review. Carlson stated that he called surrounding Cities with regard to Industrial property prices. They are as follows: Sauk Rapids -- $ 16,000 per acre; Cold Spring -- $ 2,000 per acre; Sarterll $ 20,000 to $ 25,000 per acre. During discussion with surrounding / Cities, they stated preference in the developer owing the property with the City having an agreement to sell the property. The Cities then work with developers and TIF projects. Carlson stated it is his opinion that it is not feasible for the City to purchase the property at this time. Therefore, he recommends the City enter into an agreement where they City would serve as the marketing agent and would receive a fee for each lot sold. Discussion with Industrial Park Land Owner -Leo Buettner: Carlson stated the City is in the process of moving forward with the design stage of the Industrial Park. The Engineer estimate for such work is $ 22,120. The City has received a grant in the amount of $ 5,000 and the City is contributing $ 8,120, leaving a balance of $ 9,000. Buettner stated he is willing to work with the City to include an option of purchasing the property. Buettner presented the Board with surrounding Industrial Land prices and stated his asking price per acre is $ 15,000. If the Board would like to enter into an agreement whereby the City would market and sell the property, he is requesting to receive $ 45,000 annually, or 3 acres per year. Additionally, the property values would increase 7% per annum. Gohman questioned Buettner if he has ever requested a minimum fee on other properties he sold. Buettner stated he has not, but feels he needs an incentive for the City to aggressively sell his property. Buettner stated that he would be willing to negotiate this term. Gohman responded that the 7% land increase would be incentive enough for the City. Deutz stated that the land prices presented the Board are not for areas in an Industrial Park. In order to establish a fair market price that information should be received by the Board. The Board agreed that before any further work is completed an agreement would need to be executed between the land owner, Leo Buettner and the Economic Development Authority. The Board questioned Buettner if he is willing to contribute $ 9,000 to the design work of the Industrial Park. Buettner stated that before he commits any funds to the Industrial Park, he needs an assurance or commitment from the City. Board Members discussed the tax impact and market values of the unsold properties. Gohman stated the development of the Industrial Park will depend on the price per acre. He stressed the importance of the lots being competitively priced. The City cannot afford to hold high priced Industrial land. After a lengthy discussion, Rieke made a motion to authorize the EDA Director and EDA Chair to work with the City Attorney to draft a preliminary contract to be reviewed by Leo Buettner and EDA Board Members. The motion was seconded by Deutz and passed unanimously by those present. As Buettner will be leaving the area the end of December, the Board moved the December 10 meeting to December 3, 1997. Adjourn: Gohman made a motion to adjourn at 10:05 a.m.; seconded by Rieke and passed unanimously. ~G~ Judy 1Neyrens Recording Secretary