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HomeMy WebLinkAbout[05a] CC Annual Workshop Results~nl~r~,r~/~~lCITY OF ST. ~OSEPH W~~~. cityo(stjoseph.com Administrator Judy Weyrens Mayor DATE: February 18, 2009 Al Rassier Councilors MEMO TO: Economic Development Authority Steve ['rank FROM: Cynthia Smith-Strack Municipal Development Group Bob Loso Renee Symanietz RE: Direction From City Council Regarding 2009 Goals Dale Wick Background: As noted at the January meeting, the City Council, Department Heads and consultants held a special meeting on February 10'h for the purpose of setting priorities for 2009. Among items discussed were 2009 goals included in the EDA's annual report. Following is an update on specific goals where the City Council was asked to prioritize and provide direction. Information presented at the meeting is attached for your information and background. Following is a summary of results from the Council workshop. PREPARE FOR CSAH 2I3 CONSTRUCTION The EDA's priority for the past two years has been proactive participation with property owners, potential investors, and elected/appointed officials in preparing for the County's construction of the CSAH 2 to CSAH 3 roadway segment in 2009. As you know, construction of the major roadway provides opportunity for increasing wealth within the community. Timing of extension of a collector roadway and municipal utilities for servicing future commercial and industrial area within the general area of the new roadway is critical to provision of shovel ready commercial and industrial sites. The Council reviewed information related to the EDA goal, including: ^ Willing property owners/developers ^ Location, location, location ^ Opportunity to provide shovel ready lots ^ Provide trail loop DT, CSAH 2, to Wobegon ^ Opportunity to create high value west entryway into DT from new CSAH 2 to 3`d Ave NW ^ Potential Industrial Park Partner Identified Discussion/direction from CC Workshop: City Council indicated this is THE priority issue. Focus on resolving issues related to annexation, then master plan site concept and utility service. The City Council also directed the scope of the project at this time be concentrated on getting municipal services to the north/south segment of the new roadway. The Council appreciates the concept of a high value west entryway into downtown but prefers to require aesthetic treatments as property develops versus as part of a construction project. The Council also appreciates the CITY OF ST. JOSEPH w~~ W. cityo(stjoseph.com benefits of a trail corridor, but would like that to be installed as development occurs as well. ADDRESS CSB/SJU RESIDENCY REQUIREMENT The Council reviewed information related to the EDA goal, including: ^ Opportunity to convert downtown properties ^ Opportunity to work with County HIZ4 to develop new housing at increased density downtown ^ Opportunity to work with CSB on revamping north entrance to campus ^ Opportunity to link downtown and Wobegon Discussion/direction from CC Workshop: City Council indicated this was an issue on which the EDA should continue work. PARKWAY BUSINESS CENTER The Council reviewed information related to this development and the 2009 EDA goals, including: ^ Opportunity to provide shovel ready lots ^ Property pre-platted, Environmental Assessment complete for plat portion Discussion/direction from CC Workshop: City Council indicated this was a project that was complete as far as the City could assist at this time. For example, utilities are to the site, the City had offered to issue an assessment bond to install improvements, and moving forward with the project was in the Developer's hands. In the event one area was to be a priority for industrial/commercial lot development from a marketability standpoint, the I-94 was thought to be more likely to sell more quickly. DOWNTOWN REVITALIZATION Some members of the City Council are skeptical about the progress being made on this issue. Some also appear to confuse this issue with residential rental unit conversion. Council Member Frank has indicated he'd like members of the St. Joseph Action Group to advise the EDA regarding this matter, especially as it relates to grants for the project and/or a `theme' for downtown. MARKET ANALYSIS FOR ST. JOSEPH CC WORKSHOP 02.10.09 A. Available Commercial 8~ Industrial Properties in the City of St. Joseph Area. An analysis of commercial and industrial properties available for purchase within the St. Joseph area, which includes the cities of St. Joseph, St. Cloud, Waite Park, Sartell, Sauk Rapids, St. Augusta and Cold Spring, was conducted in order to provide the City of St. Joseph with information on sites available, their cost and additional information that perspective businesses or industries may be considering during their site selection process. Search methods include searching of the Multiple Listing Service and various websites. The following information was compiled and inventories property for sale in each city and details of the property such as price, acreage, projected use and other available information. This list contains only a portion of the properties for sale and includes both finished lots and raw land. Miles City from St. Joseph Industrial & Highway Commercial Lots or Land for Sale St. Joseph - 120.36 acres $5,190,452 or $43,124 per acre/$0.99 per sq. ft Light industrial Located in St. Joseph Township east of Business Parks. 2.5 acres for $530,000 or $212,000 per acre/$4.86 per sq. ft. Commercial Located on 8`" Ave NE with Highway 75 frontage. City utilities to be extended to site. 0.45 acres for $247,500 or $550,000 per acre/$12.50 per sq. ft Commercial Located at 118 15f Ave. NW a redevelopment site. St. Cloud 5 3.16 acres for $344,124 or $108,900 per acre/$2.50 per sq. ft. Commercial Located in southwest corner of Highway 10 & Highway 23 intersection. 7.64 acres for $2,329,588 or $304,919 per acre/$7.00 per sq. ft. Commercial Located at Highway 75 and Interstate 94 intersection. 0.90 acres for $67,900 or $75,444 per acre/$1.73 per sq. ft. Industrial Located just south of St. Cloud off of Highway 10. 8.71 acres for $1,250,000 or $143,513 per acre/$3.29 per sq. ft. Industrial Located east of Highway 75 north of I-94 St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 1 of 6 2.88 acres for $595,000 or $206,597 per acre/$4.74 per sq. ft. St. Cloud Light industrial Frontage on Franklin Ave., lot has city utilities. 2.20 acres for $960,000 or $436,363 per acre/$10.01 per sq. ft. Commercial/Office Located near Highway 15 and CR 134, city utilities available. 5.00 acres for $348,480 or $69,690 per acre/$1.60 per sq. ft. Industrial Outside of city limits on Highway 10 and CR 3. 7.60 acres for $1,986,336 or $261,360 per acre/$6.00 per sq. ft. Industrial City utilities located on 1-94 interchange. 2.24 acres for $390,297 or $174,239 per acre/$4.00 per sq. ft. Commercial or Office Park Located in St. Germain office park next to Wal-Mart finished lot ready to go. Waite Park 4 8.5 acres for $850,000 or $100,000 per acre/$2.29 per sq. ft. Entrance Corridor Business Park/ Commercial Located in St. Joseph Township with possibility of annexation and city utilities. 1.33 acres for $149,000 or $112,030 per acre/$2.57 per sq. ft. Industrial City utilities on west side of Waite Park. 4.12 acres for $1,112,696 or $270,071 per acre/$6.20 per sq. ft. Commercial Highway 75 frontage with city utilities. Sauk Rapids 8 2.00 acres for $250,000 or $125,000 per acre/$2.86 per sq. ft. Business/Commercial Located east of Highway 10 in the township no city utilities. 30 acres for $4,000,000 or $133,333 per acre/$3.06 per sq. ft. Commercial Located at Highway 10 and Watab Rd. with city utilities available. Raw land. 7.13 acres for $285,500 or $40,000 per acre/$0.91 per sq. ft. Commercial Needs to be annexed and have utilities extended located near Highway 23 east of city. St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 2 of 6 Bartell 6 0.85 acres for $210,900 or $248,117 per acre/$5.71 per sq. ft Commercial Located at Highway 10 and County Road 29. 1.51 acres for $403,536 or $267,242 per acre/$6.13 per sq. ft Commercial Located at Highway 10 and County Road 29. 1.42 acres for $441,961 or $311,240 per acre/$7.13 per sq. ft Commercial Located at Highway 10 and County Road 29. 1.38 acres for $399,468 or $289,469 per acre/$6.64 per sq. ft Commercial Located at Highway 10 and County Road 29. 2.00 acres for $350,000 or $175,000 per acre/$4.01 per sq. ft. Commercial Located at SE corner of Benton Drive and CR 29 with city utilities. 15.37 acres for $4,586,192 or $298,385 per acre/$6.85 per sq. ft. Commercial Located on Pine Cone Road expansion east of Highway 15, has city utilities. 6.46 acres for $633,144 or $98,010 per acre/$2.25 per sq. ft. Industrial Located just west of Highway 15 with city utilities. St. Augusta 10 1.10 acres for $99,900 or $90,818 per acre/$2.08 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.10 acres for $99,900 or $90,818 per acre/$2.08 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1,10 acres for $99,900 or $90,818 per acre/$2.08 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.21 acres for $103,900 or $85,867 per acre/$1.97 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 3 of 6 1.21 acres for $103,900 or $85,867 per acre/$1.97 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.38 acres for $115,900 or $83,985 per acre/$1.92 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.35 acres for $117,900 or $87,333 per acre/$2.00 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.38 acres for $117,900 or $85,434 per acre/$1.96 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.38 acres for $117,900 or $85,434 per acre/$1.96 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 2.00 acres for $149,900 or $74,950 per acre/$1.72 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 1.98 acres for $149,900 or $75,707 per acre/$1.73 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. Finished lot. 2.50 acres for $179,900 or $71,960 per acre/$1.65 per sq. ft. Business/Industrial Located at Highway 15 and CR 136 no city utilities. 1.48 acres for $295,000 or $199,324 per acre/$4.57 per sq. ft. Business or commercial City utilities available, located just south of Highway 75 and 1-94 interchange. Cold Spring 10 0.07 acres for $16,545 or $236,357 per acre/$5.42 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 0.07 acres for $16,545 or $236,357 per acre/$5.42 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 4 of 6 0.07 acres for $16,545 or $236,357 per acre/$5.42 per sq. ft. Cold Spring Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 0.08 acres for $18,495 or $231,187 per acre/$5.30 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 0.08 acres for $18,495 or $231,187 per acre/$5.30 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 0.08 acres for $18,495 or $231,187 per acre/$5.30 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 0.07 acres for $43,740 or $624,857 per acre/$14.34 per sq. ft. Industrial/business Located in Cold Spring Industrial park on north side of city with city utilities. Finished lot. 5.73 acres for $1,124,887 or $196,315 per acre/$4.50 per sq. ft. Commercial City utilities located in River Links development with Highway 23 frontage. 6.38 acres for $1,251,360 or $196,137 per acre/$4.50 per sq. ft. Commercial City utilities located in River Links development with Highway 23 frontage. The properties found to be available within the communities in the search area, included a total of 171.45 acres of industrial land and 106.06 acres of commercial land. The amount of industrial and commercial land available per community included land under an acre in size for finished lots to over 120 acres for raw land. The price of the land also varied depending on if it was a finished lot or if it was raw land. Typically a finished lot was listed for a higher price than raw land and the industrial land was listed for less than the commercial land. The overall average price for industrial land was listed for approximately $2.76 per square foot or $126,612 per acre and the price of land for commercial property was listed at $5.17 per square foot or $226,006 per acre. The following list illustrates the number of acres of industrial and commercial land available for each community and the average cost per square foot and per acre. The industrial and commercial property has been separated since there is a noticeable difference in price with between the two land uses with commercial being more expensive. St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 5 of 6 INVENTORY OF AVAILABLE INDUSTRIAL & COMMERCIAL PROPERTY FOR SALE City Total Industrial Acres Available Average Cost per s . ft. Average Cost per Acre Total Commercial Acres Available Average Cost per S . Ft. Average Cost per Acre Cold Spring 0.52 $5.36 $234,141 12.11 $4.50 $196,226 St. Augusta 17.69 $1.92 $84,082 1.48 $4.57 $199,324 St. Cloud 25.09 $3.47 $151,320 15.24 $5.87 $256,105 St. Joseph'` 120.36 $0.99 $43,124 2.95 $8.68 $381,000 Bartell 6.46 $2.25 $98,010 22.53 $6.07 $264,908 Sauk Rapids - - - 39.13 $2.27 $99,444 Waite Park 1.33 $2.57 $149,000 12.62 $4.24 $185,035 Totals/Averages 171.45 $2.76 $126,612 106.06 $5.17 $226,006 All 120 acres is in the Township Industrial Park St. Joseph Area Market Analysis, 2009 (MDG, Inc.) Page 6 of 6 2/18/2009 Community Development (in a Slow Economy) St. Joseph City Council Work Session February 10, 2009 ~~~ MUNICIPAL DtvUaMem GROUr, lxc. Community Development (in a Slow Economy) STRUCTURE OF PRESENTATION • Define Dilemma & Essential Activities • Review History of Community Development • Regional Activities: SCAEDP (Tom Moore) • Short Break :• State of Economy • Local Building Permit Trends • Strategy Session 1 2/18/2009 Community Development (in a Slow Economy) THE DILEMMA Reduced cash flow/tax capacity Reduced rate of growth V S. Setting the table for future development `' Investment in the community ~', iti x ommunity Development (in a Slow Economy) THE ESSENTIALS: Community Development Focus is to provide infrastructure 8v develop assets supporting econ. growth 8v investment Target building blocks for econ. devl. -setting the table for economic development Economic Development Focus is creating wealth: more fu-ms, more jobs, more tax base Target business and industry 7. •, k e ., ~ '' ', City of St. Joseph 8~ EDA ~~ ~ .~- r F ~j ~ ~,~. + _ have historically done BOTH ~ ~ - ~ ;~- 4 2 2/18/2009 Community Development (in a Slow Economy) COMMUNITY DEVELOPMENT CONCEPT AREAS OF PRACTICE * Physical infrastructure (water, sewer, housing, schools, & public facilities) in place * Development of human capital (workforce development, potential productivity of community residents) technical 8v non-technical skills * Development of civic capital (ability of people and organizations to work together for a common purpose or goal) * Building on natural capital (natural and environmental resources, sense of place) ~t Financial capital: affordable credit, availability of basic financial services & investment capital Community Development (in a Slow Economy) ECONOMIC DEVELOPMENT CONCEPT AREAS OF PRACTICE * Market outreach (regional approach more effective, e.g. SCAEDP) ,t Information exchange: connect potential buyers & sellers *Technical/financial resources * Business retention/expansion 8v entrepreneurial outreach * Development of community capital (i.e. those resources upon which Community Development is focused) 2/18/2009 Community Development (in a Slow Economy) Community Development ~ Sets the table, primes pump Ck Reaches out to all of City Cx Provides building blocks for creation of wealth i7 Preparedness ~k Planning tx Forward-thinking Cs Communi -wide focus Economic Development tk Reaches out to businesses Ck Builds on investment t} Project specific t~ Often reactive CX Commercial/Industri~ Community Development (in a Slow Economy) WHAT STRATEGIES HAVE THE CITY EDA PURSUED IN THE PAST? ', * Statewide growth strategy: Agency Mn. Department of Employment 8v ~I Economic Development. :•Allow for establishment of local and county EDA/HRA • Establishment of workforce development centers • Special tax incentives: enterprise zones, JOBZ program, biozones s~Allow for local tax abatement/tax increment financing authority • Technical experts • Statewide marketing campaign • CDBG program administration: Small Cities Development Program • Strategy to maintain State competitiveness 4 z/Za/zoo9 Community Development (in a Slow Economy) WHAT STRATEGIES HAVE THE CITY EDA PURSUED IN THE PAST? * Regional growth strategy: Agency St. Cloud Area Economic Development Partnership; Stearns County HRA. • Marketing of Region/Rural Growth Cluster •: Inter-agency coordination :• County HRA =leverage local programs :• Pursue regional prospects ~. Industry cluster development •: Bring area-wide stakeholders together :• Reduce competition between communities :• Tom Moore to speak in a few moments Community Development (in a Slow Economy) WHAT STRATEGIES HAVE THE CITY EDA PURSUED IN THE PAST? *Local growth strategy: City, Elected/Appointed Officials, 8v EDA • Set the table for economic development, e.g. promote presence of shovel ready, competitively priced C/I lots (Comm. Devl.) • Consistent and proactive lead follow-up & business outreach (Econ. Devl.) • Provide professional service, precise technical information, and competitive incentive packages (Econ. Devl.) • Support an increase in rooftops, increase trade area (Comm. Devl.) •:• Promote job creation & livable wages, e.g. admin. of financial incentive policy business recruitment activities, business retention/expansion activities (Econ. Devl.) • Promote redevelopment, revitalization, and infill developpment -not only greenfield development; e.gg Downtown Revitalizatign ($3.5 M), CSAH 75 revitalization (Comm. Devl.) • Promote sustainable development; e.g. student rental conversion 8v participation in CPU (Comm. Devl.) :• More on these later 5 Z/ZS/ZOOS Community Development (in a Slow Economy) St. Cloud Area Economic Development Partnership Executive Director: Tom Moore TOPIC: SCAEDP's efforts to mazket ~ the St. Cloud region Community Development (in a Slow Economy) FIVE MINUTE BREAK 6 z/ZS/2oo9 Community Development (in a Slow Economy) WHAT ABOUT THE ECONOMY? ~ Economic downturn expected to continue in 2009. * Employment predicted to contract -fewer jobs available * Unemployment rates expected to rise -more people looking * Recovery in home building and real estate markets probably more than one year away * 2008 manufacturing slowdown is continuing (rural Mn. more dependent) * Ag producers had a good 2008; 2009 outlook is mixed (rural Mn. more dependent) * Inflation worries have lessened as energy prices have fallen * Commodity prices have dropped ~ Despite concern nationally, credit is still widely available in the Mpls. Fed. Res. Region * Financial institutions report credit still widely available to businesses -enough volume! There is not a credit crunch. * Some tightening of credit standards -tighter credit doesn't mean credit isn't available - it is; just better gaugiag of creditworthiness of applicant 8s more strings attached. * Fewer businesses/individuals seeking credit * Those that are seeking are less qualified ommunity Deve opment (in a Slow Economy) 2007-09 RECESSION IN PERSPECTIVE ~k The 10 previous postwar recessions have ranged in length from 6 months to 16 months, averaging about 10 1/2 months. The current recession (started Dec. 2007)has surpassed the postwar average but length will only be determined when it is over. ~x The Business Cycle Dating Committee of the National Bureau of Economic Research determines the beginning and ending dates of U.S. recessions. There is not a lucid definition. ~? The severity of a recession is determined in part by its length; but perhaps more by the magnitude of the decline in employment and economic output. Next two slides look at this recession 8v others in terms of decline in employment & output. 7 2/18/2009 Community Development (in a Slow Economy) 2007-09 RECESSION IN PERSPECTIVE Change in Employment: Current Recession vs.5lnvnoryof 10 Postwar Recessions* I ~ „,~,. , ._ _.~ ,..,., ..~. ..;, Mlldeat ~. ~.. N 0 ,"~, ~`'°'^- Current o -1 r ~""`r Median 0 o '2 s -3 `c Harshest _q 5 0 2 a b B 10 12 14 16 18 Source: Federal Reserve Months from start of recession uWm«d ~,. 9.7009 Hank d Mimleapolis 'Miklesl, median, and harshlesl lines cell . t the smallest, median, and Mryesl declines as of each monslr th do not celled . IRc Individual recession Community Development (in a Slow Economy) 2007-09 RECESSION IN PERSPECTIVE Total Change in 6utput: CurrenT Recession vs. 10 Postwar Recessions 1 O _ _ _ _ II t I _ , p C I N ~ V^] i. ~ ~ ^ W , ~ I ~ N v I ii ~ I ~- ~ j t x -2 I4 >_ .~ ~ ~~~ ~ i 3 c -4 _g $u..n~e: Fedc.al Reacrrc Year recession started "Clwr.~e oiler < ~.,uner- HaM al Minneapolis UFdmwf Inn 3U, 2f%)9 8 2/18/2009 Community Development (in a Slow Economy) 2007-09 RECESSION IN PERSPECTIVE BUILDING OFFICIAL President:Inspectron Ron Wasmund TOPIC / Local building trends lira: =~. ' ' /Commercial investment in St. Joseph ~, ~4z> ommunity Development (in a Slow Economy) SO, WHAT AGAIN DO WE KNOW ABOUT THE ECONOMY? KX These are not the best of times, but not the worst of times either ...Yet. ~ All ten post-WWII recessions have ended in periods of growth. G The Country and our economic system survived even the Great Depression. t'x History and common sense tell us the economy will rebound, the world will emerge intact from this crisis, & economic growth will again reign. ~7 Economic conditions are currently an `inhibitor' to economic development BUT not to COMMUNITY DEVELOPMENT! 9 2/18/2009 Community Development (in a Slow Economy) SO WHAT'S A CITY To Do? _ ~x The recession and projections for 2009 are sobering ...Combined with a State budget shortfall & anticipated cuts in LGA ...It's concerning! -. d7 Perplexed, you are not alone! ;. ~_ '~- r~~ ~~ ~ Easy answers ...aren`t any ~ t~ Proposal: Find Opportunities M1; _4; "° ' „' t~ Work on goals s. ~; ,> r. ~,,.. Community Development (in a Slow Economy) ,. ,~. Don't have to F. do everything at once =6 ' y OPPORTUNITIES KX CSAH 2 Construction * Willing property owners/developers * Location, location, location * Opportunity to provide shovel ready lots * Provide trail loop DT, CSAH 2, to Wobegon * Opportunity to create high value west entryway into DT from new CSAH 2 to 3"d Ave NW (sales tax revenue?) * Potential Indust. Pazk Partner ~ CSB/SJU Residency Requirement Change * Opportunity to convert DT properties * Opportunity to work with Co. HRA to develop new housing at increased density DT * Opportunity to work with CSB on revamping North entrance to campus * Opportunity to link DT 8v Wobegon 10 2/18/2009 Community Development (in a Slow Economy) Y ~~,._ :. ~- .~ ' - "! OPPORTUNITIES ~ Parkway Business Center * Opportunity to provide shovel ready lots * Property pre-platted, Environmental Assessment complete for plat portion ~ Revitalization CSAH 75 between 2nd Ave NW and 1St Ave SE * Student rentals may be available * Opportunity to amass meaningful volume of lots * Opportunity for Small Cities Grant Program ~ Facility Needs Assessment ~- Opportunity to convert DT or student rental properties. * Opportunity to provide addl public amenities Community Deve opment (in a Slow Economy) ~~ '~~~ .: ,~:, x,. ~~>, *.. - , REQUEST ~ What are CC's thoughts? * On various opportunities * On other Community/Economic Devl related issues * Priorities? Ck Resources to Assist! * John Anderson -licensed real estate agent, conducted technical inventory of rental units; worked in private (development) sector. * Ron Wasmund -participated in project with City of Mankato & NSP re: industrial park creation. * Construction map of CSAH 2 ~t Maps of rental units: by conversion & condition * Fresh Comp. Plan Update (background, goals & maps) 11