HomeMy WebLinkAbout1999 [09] Sep 27Oj~cial Minutes- EDA Board
Pursuant to due call and notice thereof; the Economic Development Authority for the City of St. Joseph met
in special session on Monday, September 27, 1999 at 8:00 a.m. in the St. Joseph City Hall.
Members Present: Chair Kenneth J. Hiemenz. Board Members Ken Twit, Bruce Gohman and Ross
Rieke. EDA Director Chad A. Carlson. Absent: Mike Deutz.
New Business:
Purchase Agreement with First State Bank of St. Joseph: Carlson presented a purchase agreement for
the acquisition of First State Bank of St. Joseph for administration offices. The EDA will finance the
facility for the City of St. Joseph. Cazlson stated that the purchase price would be $545,000.
Twit questioned if the $545,000 includes fiunishings as selected by the City. Carlson stated that the City
Administrator has received a list of furnishings from the President of the bank and that the purchase price
does included the fiunishings as identified on the list. Twit fin ther stated the City of St. Joseph and
administration staff should be very pleased with the high quality of the furnishings the bank has included
with the purchase of the facility.
Hiemenz stated that the inventory of furniture should be included as an exhibit to the purchase agreement.
Hiemenz requested that Cazlson contact the City Administrator to make sure the purchase agreement is
complete and all exhibits are included.
Hiemenz questioned the fact that a closing date was not included in the agreement. Hiemenz recalled a
May 2000 closing date being discussed during the negotiations. Cazlson stated that the owners of the
facility eliminated a specific closing date from the purchase agreement due to the timing of construction for
the new facility and other contractual agreements.
Gohman stated that the new facility is scheduled for completion on June 10, 2000 and the purchase
agreement states that closing will occur prior to September 1, 2000 as defined in Section 4 of the
agreement.
Twit moved to accept and execute the purchase agreement between the St. Joseph Economic
Development Authority and First State Bank of St. Joseph for the purchase of real property.
Seconded by Gohman;
Ayes: Hiemenz, Twit and Gohman
Nays: None Motion Carried
Business Subsidy Policy: Carlson presented a draft business subsidy policy to the EDA Board. A
business subsidy policy is required by Minnesota State Statute 1161.993 to 1161.995 for all municipalities
providing businesses with subsidies after August 1, 1999. The Statute also states that the local governing
body must adopt the policy. The law was passed to control communities and organizations that have power
to award business subsidies and put the control into the hands of elected officials. Specifically
organizations that have revolving loan funds or other types of financial assistance.
Gohman questioned the origination of the draft policy and the fact the policy is very vague. Carlson stated
the language for the policy was supplied by the League of Minnesota Cites and the community of Sartell.
The language indicates the flexibility of the law and the amount of discretion each community can exercise
with any given project involving a business subsidy.
Cazlson further stated that a sepazate business subsidy agreement would be entered into with each project
involving any sort of subsidy.
Gohman moved to recommend the City Council adopt the business subsidy policy as presented.
Seconded by Twit;
Discussion: Twit questioned if a public hearing has been scheduled for the Ciry Council. Twit
stated that the City Council could conduct the public hearing during a regular Ciry
Council meeting to avoid hold a special meeting. Hiemena stated that the issue is
not controversial and shouldn't take a large allotment of time during a regular City
Council meeting. Carlson stated that he will coordinate the public hearing with the
City Administrator.
Ayes: Hiemenz, Twit and Gohman
Nays: None Motion Carried
Ross Rieke arrived at 8:20 a.m.
Architectural Contract: Carlson presented the architectural contract between the St. Joseph Economic
Development Authority and Grooter Leapadlt Tideman Architects. The contract defines that activities the
firm will conduct for the remodeling of the new administration and police department facilities.
Gohman stated that the fees identified in Exhibit E and Exhibit F seem to be costly for the St. Cloud area.
Gohman specifically sited the technical and clerical hourly rate, copy costs, and blueprint fees.
Twit questioned if the proposed contract is standard and if all the sizes of blueprints indicated in the fee
schedule aze required.
Gohman stated that the proposed contract is a standard contract and different sized blue prints will be
necessary for the contractors.
Carlson stated his concern with having an open contract based on hourly rates and if the EDA should be
considering a cap for expenditures. Twit expressed his concern with the fee schedule and the fact the
contract is opened ended.
Hiemenz stated that during the interview the azchitect stated that it would be hazd to put a firm number
down at this point since the City hasn't decided on the amount of remodeling that needs to be completed.
Gohman stated that initial architectural contracts tend to be open ended until the project is defined.
Twit stated that the fees could be negotiated at this point since a contract has not been signed.
Hiemenz sited Section 1.3.9.4 of the contract which states the Architect may adjust the hourly rates on a
periodic basis with 30 day notice to the owner. Hiemenz stated that a month into the project the fee
schedule could increase.
Hiemenz requested Cazlson to compare the proposed fee schedule to other azchitectural firms that were
interviewed. Hiemenz stated that the fees don't appeaz to be out of line and contacting other firms may
reinforce the fees provided by Grooter Leapadlt Tideman Architects.
Rieke suggested that Cazlson review the azchitect fees associated with the construction of the new fire hall.
Twit reiterated that a contract has not been signed with Grooter Leapadlt Tideman Architects and the EDA
is not obligated to use the firm for this project.
Carlson stated that a confirmation letter has been sent to Grouter Leapadlt Tideman Architects by the city
of St. Joseph stating they had been selected as the architectural firm for the project.
Twit made a motion to table the approval of the architectural contract between the St. Joseph
Economic Development Authority and Grouter Leapadlt Tideman Architects until the October EDA
Board meeting and pursuant to the EDA Director completing an analysis of the proposed fee
schedule. Seconded by Gohman;
Ayes: Hiemenz, Twit, Gohman and Rieke
Nays: None Motion Carried
Adjourn:
The meeting was adjourned by consensus at 8:40 a.m.
`Chad A. Carlson
Economic Development Director