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HomeMy WebLinkAbout2008 [06] Jun 25CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes -Wednesday, June 25, 2008 Present: EDA Board Members Carolyn Yaggie-Heinen, Ken Jacobson, AI Rassier, Tom Skahen and Dale Wick. Absent: None. Also present: Lori Bartlett, Finance Director and EDA Consultant Cynthia Smith -Strack of Municipal Development Group. Chairperson Wick called the June 25, 2008 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda. No changes were requested. Moved by Jacobson, seconded by Rassier to approve the agenda as presented. 5-0. Approval of Minutes. Chairperson Wick introduced the minutes from the May 28, 2008 regular meeting. Motion by Rassier, second by Skahen to approve the minutes from the May 28, 2008 regular meeting. Motion carried 5-0. EDA Accounts Payable. Wick introduced the topic. Wick noted accounts payable for the month totaled $2,387.56 for contract, phone, and mailing expenses. Motion by Jacobson, second by Wick to approve the EDA accounts payable for the month of June 2008 in the amount of $2,387.56. Motion carried 5-0. Financial Report. Wick introduced the agenda item and Finance Director Bartlett. Bartlett reported typical information contained in the monthly financial reports has become increasingly complex. Bartlett noted she, Weyrens, and Strack had discussed the issue following input from two City Council Members. The result of the discussion was to refine reports to illustrate financial information in a more user-friendly fashion. Therefore, future reports will be more concise and precise. Expense items will be reported as of the close of the previous month mid-month data. Bartlett noted that a negative balance in a revenue report indicated revenue that exceeded what was budgeted and did not indicate a shortfall in revenue. The EDA reviewed the April and May financial reports with Bartlett answering questions as they arose. Motion Rassier, Second Skahen to approve the April/May 2008 and May/June 2008 financial reports as presented. Motion carried 5-0. 2007 Audit Chairperson Wick called attention to the 2007 Audit Reports contained in the EDA packet: balance sheet and statement of revenues/expenditures with resulting fund balance. Bartlett reviewed the statements for Fund 150, 155, 156, 157, and 250. Bartlett noted the EDA was asked to spend down the balance in Fund 150 in 2007. The balance remaining in Fund 150 at the close of the year totaled $29,175 a net decrease of $34,166. Bartlett called the EDA's attention to the sizable balance in Fund 157 (TIF 1-4, St. Joseph Development/VicWest). Bartlett noted she had researched the balance at the request of Strack. Her research revealed an error in processing the payment by the County in 2005 which resulted in over-payment for the District. The error was caught by City staff in 2005 and the County was notified of the error. The overpayment, however, was not returned to the County for redistribution due to the fact an invoice was not received. Bartlett noted she had spoke with the County regarding reimbursement earlier in the week and had drafted a report documenting a need to reimburse the County $20,624.97. The reimbursement will be drawn from the balance in Fund 157. The County will redistribute the reimbursement between the city, county and school district. Motion Heinen, Second Jacobson to approve disbursement to Stearns County from Fund 157 balance in the amount of $20, 624.97 and recommend the City Council do the same. Motion carried 5:0. Preliminary Budget - 2009 Wick introduced the agenda item. Strack stated preliminary budget worksheets for Fund 150 (General EDA Fund), Fund 155 (TIF 1-3, Borgert), Fund 156 (TIF 1-4, Vicwest), Fund 157 (Millstream Shops & Lofts), and Fund 250 (Revolving Loan Fund) were included in the packet. Strack reported: The proposed 2009 EDA operating (Fund 150) budget is slightly less than the actual 2008 budget. The proposed budget assumes a contract extension with the EDA Director versus a staff level Community Development Director. The proposed budget includes $8,250 for membership dues to the St. Cloud Area Economic Development Partnership. Proposed anticipated revenues and expenditures for Fund 155 and 156 are based on actual revenue/expenditures in previous years. Fund 157 forecasts are based on projections included in the TIF Plan for 2-1. The accuracy of the forecasts is dependent upon the accuracy of the projected estimated market value contained in the TIF plan. Fund 250: Revolving Loan Fund. The 2007 audited fund balance is $50,528. The balance is available for loan to business establishments which create jobs at livable wages. Wick noted the St. Cloud Area Partnership had voted not to increase dues for 2009; therefore, the dues line attributed to the SCAEDP in Fund 150 could be reduced from $8,250 to $8,000. Motion Rassier, Second Heinen to approve the preliminary budget for 2009 and forward to the City Council for consideration. Motion carried 5:0. Capital Improvement Plan - 2009 to 2013. Wick introduced the agenda item. Wick noted that in conjunction with preparation of the 2009 budget, the 2009-2013 Capital Improvement Plan is being reviewed. Strack noted the CIP includes budget priorities for capital purchases, improvements, etc. over the next five years. Last year the EDA requested capital improvement allocation in the amount of $7,500 for commercial redevelopment and rehabilitation and $7,500 for a proposed architectural/design services matching grant program. Strack requested input on the CIP request form included in the EDA packet. Rassier suggested the EDA seek $7,500 each year for improvements within the Downtown. Jacobson suggested the amount be increased so as to have a larger, more visible return on investment. Heinen supported Jacobson's idea. Strack questioned whether a larger amount like $60,000 per year would be considered reasonable by the City Council and the public. Rassier EDA Minutes -June 25, 2008 2 noted the amount wouldn't be extravagant if programs were appropriately defined and administered. Jacobson suggested each year a different commercial or industrial area be targeted for incentives, e.g. downtown in 2009, highway commercial in 2010, and industrial areas in 2011, etc. Jacobson suggested if one area didn't participate fully the incentives could be transferred to other areas as 'secondary' priorities. Jacobson stressed the need for funding participation by the City. Wick expressed support for a larger CIP request if the request was in loan versus grant form. The EDA further discussed the concepts of loan and grant. The Board agreed additional detail and discussion regarding CIP requests was needed. The Board directed Strack to further define potential programs for consideration at the July meeting. Fee Comparison Chairperson Wick introduced the agenda item and noted the following items were included in the EDA packet: Comparative fees for Albany, Avon, Cold Spring, and St. Joseph; two development scenarios with fees from each of the four communities applied; real estate tax comparisons for the four cities; comparison of fees for several other communities and St. Joseph completed in 2004; and information regarding the storm water utility. The EDA noted fees in St. Joseph appeared to be on par with other communities. Downtown Update Wick initiated discussion on the topic. Strack informed the EDA that following the May meeting a letter was mailed to Father Feders at the Church of St. Joseph regarding working together to enhance a street corner. Strack noted Father Feders phoned her and requested a meeting regarding the subject be delayed until mid-July to allow focus on 4th of July celebration and end of the budget year for the church. Strack added that following the previous EDA meeting Board Member Jacobson proposed the EDA review the possibility of gaining 'buy in' from property owners via an interesting approach. Jacobson noted many draftspersons and architects are actively looking for projects during this period of slow growth. Jacobson suggested calling on businesses in the downtown with such professionals. The purpose of the visit would be to address potential (moderate) facade improvements for each building. The EDA discussed the possible project and directed Strack to arrange meetings with three business owners in the downtown over the next month. The meeting team is to include adraftsperson/architect, the building official, and a design professional. Comprehensive Plan Update -Future Land Use Map. Wick introduced the agenda item stating that the CPU process was continuing. Strack referenced the maps contained in the packet. Rassier stated he did not support treating all arterial and/or collector streets alike in terms of greenways/transportation overlays since each roadway in each area was different. The EDA supported presentation of both maps for future discussion in conjunction with the plan. Director's Report Wick noted the report contained in the packet. Board Member Reports Skahen reported Sunset Manufacturing is contemplating the addition of a second shift. Wick reported he attended the League of Minnesota Cities Conference at which he joined discussions regarding economic development. Wick intends to provide the EDA with additional information mailed to him as a result of the Conference. EDA Minutes -June 25, 2008 3 Wick further requested that Business Retention and Expansion surveys/visits be added to projects in 2009. Adjournment. Motion by Rassier, Second by Heinen to adjourn the regular EDA meeting. Motion carried 5:0. Meeting adjourned at 4:35 M. ~~ ~Y~` EDA Minutes -June 25, 2008 4