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Home My WebLink About1998 [10] Oct 14Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met in regular session on Wednesday, October 14, 1998 at 8:00 a.m. in the St. Joseph City Hall. Members Present: Chair Kenneth J. Hiemenz. Board Members Bruce Gohman, Mike Deutz, Ken Twit, Ross Rieke. Director Chad Carlson. Recording Secretary Judy Weyrens. Others Present: Annroval of Minutes Gohman made a motion to approve the minutes of September 14, 1998 as presented; seconded by Twit and passed unanimously by those present. OLD BUSINESS Sunset Manufacturing_ Sunset Manufacturing has received a $ 50,000 loan from the Stearns County Revolving Loan Fund. Bor~?ert Products: Carlson stated that he has recently received the Developer's Agreement for Borgert, which is the last phase. Carlson will review the agreement with the EDA Chair and report back to the Board and City Council. NEW BUSINESS USDA Loan Annlication: Carlson stated the EDA received an award notice in the amount of $ 230,113 from Rural Development. In addition, Stearns Cooperative Electric has agreed to loan the EDA $ 46,022.66. If the EDA/City accepts the loans, the City will be required to contribute towards site development in the amount of $ 116,565.34. Carlson stated that the loan rate is less than one percent. Twit questioned if the local contribution would be recaptured by the City or how the contribution would be supported. Carlson stated that he has not had a chance to review the financial position of the City, but possibly the contribution could be funded through City reserves, water or sewer funds. Twit questioned if any of the improvements would be assessed. Carlson responded that if Vic West Steel relocates the local contribution will be funded through TIF. Twit also clarified that the loan is contingent upon development. Carlson stated that at any time the City/EDA may refuse the funds. Deutz made a motion to recommend the City Council accept the following loan funds and authorize the expenditure of the required City contribution. USDA Funds $ 230,113.00 Stearns Co-op 46,022.66 City Contribution 116,565.34 Total Development 392,700.00 The motion was seconded by Rieke and passed unanimously by those present. Carlson stated that the above funds will pay for the development of water, sewer and storm sewer. If the project costs is less than the total development cost as stated above, the loan funds will be reduced accordingly. Vic West Steel Project: Carlson reported that he prepared and forwarded to Vic West Steel a letter of intent. In conversations with the company it is their intent to begin construction next year, 1999, and October 14, 1998 Page 1 of 3 move into the facility in January 2000. Carlson stated it is his recommendation that Vic West Steel begin the TIF process before the end of the year so it could not be jeopardized by possible legislative changes. Gohman stated it has been his experience that Vic West Steel needs a time line with firm deadlines to help them move forward. Board Members encouraged Carlson to stress the advantages of such a time frame. Buettner Plat: The Preliminary Plat hearing for the Buettner Plat has been scheduled to be heard by the Planning Commission on November 9, 1998. Carlson stated that Buettner is requesting to have the plat finalized by December 31, 1998. As requested by the EDA in September, Buettner modified the original plat changing Scott Avenue and Industrial Blvd to ] 5~' Avenue and CR 133. Gohman requested the EDA review the revised plat at the November meeting. Planning & Zoning~Ordinance Review: Carlson reported the Planning Commission has finished reviewing and updating the Zoning Ordinances and will be presenting a draft to the Council for review. In Carlson's opinion, the City should consider dividing the General Business section into Highway Business and Downtown Business. Rieke suggested Carlson prepare a draft for the Planning Commission to react to and then recommend any changes to the City Council. The Board discussed the Planning Commission's recommendation to eliminate the maximum lot coverage requirement in the Industrial Zone. It is Gohman's opinion that other Ordinances will prohibit a property owner from covering an entire parcel with building. The Planning Commission may wish to re-visit the Industrial lot coverage requirement in reference to parking and circulation. Rieke questioned the status of the Wobegon Trail and if St. Joseph will be part of the Trail. Carlson stated that he is part of a committee with the St. Cloud Area Planning Organization (APO) working to extend the Trail east to Waite Park. The Community Planning Grant of Senator Opatz was the beginning stages of the Tri-County area being allowed to participate in funding sources available to the metropolitan area. Opatz will be presenting legislation to secure funding that would allow the Wobegon Trail to be part of a regional trail system. Annual Meeting: Rieke made a motion to schedule the annual meeting of the St. Joseph Economic Development Authority at 8:00 a.m. on November 9, 1998. The motion was seconded by Twit and passed unanimously by those present. Business Contacts: Carlson reported that he has had contact with the following businesses looking to locate in St. Joseph: 1. Siding Company -looking to locate in the Industrial Park 2. Powder Coating Company -Are pursuing a purchase agreement with Mike Rennie. The Company will be constructing a 7,000 square foot building. 3. Micro Brewing Company -Looking to locate on property located on the SE side of St. Joseph. Hiemenz stated that he also has had contact with this company and they are looking for a parcel of property with aesthetics. It is Gohman's opinion this project belongs in the Industrial Park. Carlson stated that the Company is also looking at the possibility of purchasing the former Krebsbach property. Miscellaneous and Announcement Items: Hiemenz reported on the following: 1. The Partnership will be hosting an open house for New Flyer on October 19, 1998 2. The Partnership will be hosting a social event honoring Glenn Carlson on October 21, 1998. October 14, 1998 Page 2 of 3 TIF Seminar -Hiemenz received information on an upcoming seminar and forwarded the information to Carlson. Sewer District - St. Cloud Capacity: Hiemenz stated that he recently had the opportunity to discuss with St. Cloud the status of the Sewer District and available capacity. The Council Member he spoke to stated that St. Cloud will not be selling capacity. However, Hiemenz indicated they may be willing to rent capacity. St. Joseph needs to watch the industry in relation to capacity and should begin the process of negotiating with St. Cloud for additional space. Rieke stated that it was his understanding that St. Joseph purchased a certain amount of capacity including plant space and at the present time should have adequate capacity. Hiemenz stated that if St. Joseph expanded to include Pleasant Acres, the current excess capacity would be used and thereby leave no capacity for industrial expansion. Gohman and Deutz agreed with Rieke and felt that adequate capacity is available and St. Cloud is trying to find a way to finance a new plant. Citv Hall Project: Carlson reported that he has received designs for remodeling the existing City Hall and the First State Bank building. These drawings will be submitted to the task force for review and recommendation to the City Council. Adjourn: Gohman made a motion to adjourn at 9:00 a.m.; seconded by Rieke and passed unanimously by those present. _~y ~~ Judy Weyrens Deputy Clerk October 14, 1998 Page 3 of 3