Loading...
HomeMy WebLinkAbout2003 [03] Mar 193-19-03 Page 1 of 5 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, March 19, 2003 Present: EDA Board Members Mike Deutz, Ross Rieke, Tom Skahen and Larry Hosch. Absent: EDA Member Bruce Gohman. Also present: Joanne Foust of Municipal Development Group, Chris Rice of Rice Buildings, Dave Mehr and Cory Ehlers. Chair Deutz called the regular meeting of the St. Joseph EDA to order at 4:03 p.m. Agenda. Moved by Hosch, seconded by Rieke to approve the agenda with Business Item 8, Approval of Building and Site Plan for 700 Fifteen Avenue North, discussed prior to the Financial Report. The agenda was approved as amended 4:0. Minutes. Moved by Skahen seconded by Rieke to approve the minutes of the February 19, 2003 EDA meeting as presented. Minutes were approved 4:0. Building and Site Plan - 700 Fifteen Avenue North. EDA members reviewed a building and site plan fora 16,000 square foot multi-tenant industrial facility proposed for Lot 2, Block 1, Buettner Business Park 11 or addressed as 700 Fifteenth Avenue NE. Mr. Dave Mehr, developer, and Mr. Chris Rice, Rice Buildings, the architect for the project were present to discuss the project and respond to questions. Mr. Rice noted the site plan illustrates a possible 16,000 square foot future addition which would result in a 32,000 square foot building. A drawing illustrating the proposed creme color siding was displayed. The EDA discussed the proposed plans as they related to the Protective Covenants in place for the Buettner Business Park, and made the following notations: The Covenants require open areas, excluding parking, driveway and storage areas to be landscaped with trees, shrubs or planted ground cover. The plan illustrates berms and plantings but did not identify the installation of groundcover for the remainder of the lot. Mr. Mehr and Mr. Rice indicated that areas which are disturbed as a result of the construction will be restored and planted with grass seed. Undisturbed areas will remain with its current groundcover. The EDA indicated for their purposes this would be acceptable, but noted the Planning Commission may further discuss this and also referenced the city's weed ordinance. 2. Section 3.05 of the Covenants outline foundation and frost footing requirements. A foundation plan was not submitted as a part of the plans for EDA review, Mr. Rice indicated they would comply with the complete perimeter foundation with frost footings extending a minimum 8" above the final grade, and that he would supply afoundation/footing drawing for the Planning Commission review. EDA approval is contingent upon compliance with this section. 3. Although it is not addressed in the covenants, the EDA briefly discussed the need for a paved area adjacent to the entrance to the loading docks to eliminate or reduce the Class II gravel from washing into the city street and storm sewer. The EDA informed Mr. Mehr and the architect that this would most likely be an issue raised by the Planning Commission. 4. Also, not addressed by the covenants but discussed by the EDA was the need for a heavier duty paving on the parking lot. It was noted that the light duty (1 %") paving would be too thin and that the Planning Commission would discuss this. 5. Finally, the EDA suggested the architect coordinate the completion of a storm water plan with Joe Bettendorf and review sprinkler requirements with the Building Inspector. EDA Minutes -March 19, 2003 Page 1 3-19-03 Page 2 of 5 Moved by Hosch, seconded by Skahen to approve the building and site plan for BLT Properties for Lott, Block 1, Buettner Business Park 11(700 Fifteenth Avenue NE) as it relates to the Protective Covenants for the Buettner Business Park provided required foundation and frost footing requirements outlined in Section 3.05 are complied with. With all in favor the motion was approved 4-0. Mr. Mehr and Mr. Rice departed from the meeting at 4:20 p.m. Mr. Cory Ehlers joined the EDA meeting at 4:20 p.m. Accounts Payable/Financial Report. The EDA discussed accounts payable for the month of March, 2003 in the amount of $1,782.48 for professional services and a TIF payment for the second %2 of 2002 in the amount of $7,606.18. Moved by Rieke seconded by Skahen to approve March Accounts Payable as presented. The accounts payable were approved 4:0. EDA members acknowledged the financial report which illustrated year-to-date expenditures were at 10.12 percent of the total annual budget. Business Questionnaire. EDA members briefly discussed the questionnaire developed to receive input from developers on the economic development, planning and administrative processes in St. Joseph. Members noted that the Planning Commission and Council have not yet reviewed or commented on the proposed survey. They requested MDG, Inc. prepare a memo for the Planning Commission and Council explaining the intent of the survey and requesting their comments on it. EDA members also requested a second version of the form be created to include questions in the present tense for projects that are still underway and that the form be reformatted to allow more space for responses and contact/return mailing address and phone number for the St. Joseph EDA, resulting in a full two-page questionnaire. The revised questionnaire and comments from the Planning Commission and Council will be included on the April agenda. Municipal Maintenance Facility. Chairman Deutz introduced Cory Ehlers and noted that he had invited him to attend the EDA meeting to provide background information on the proposed Maintenance Facility, as Mr. Ehlers was one of the two Council members who served on the Maintenance Facility Task Force in 2001 and 2002, along with public works staff employees and Mr. Dean Wick from Outsource Management. Mr. Ehlers noted that in 2001 the Council identified the need for an expanded maintenance facility due to its current condition and limited space, with the public works equipment currently stored in four facilities. The Committee reviewed possible construction options which could be completed with the approximate $300,000 available in various reserve funds of the city for the project. After significant review, the committee recommended the construction of a 12,000 square foot building, slab on grade, at the site of the current maintenance facility. The current facility, which is 8,500 square feet, was proposed to be removed or demolished. It was reported that four bids were received from contractors for the project with prices ranging from $381,750 to $456,000. A contract was awarded to Shingobee Builders for $381,750, which did not include the alternate bid price for building demolition. The Council had hoped someone would relocate the current building and demolition costs of $18,000 would not be incurred. Since the construction cost came in higher than the $300,000 available in the city funds, alease-purchase arrangement with the bank was investigated. Due to funding limitations, alternative sites were not discussed at that time. Hosch noted that the City Council has recently discussed the construction of the maintenance facility and the best long-term site for the building. He noted that he has concerns with the site limitations at the current location and feels strong that it is in the best long-term interest of the city to acquire a larger site. He added that the proposed site, Lots 1 and 2, Borgert Industrial Plat, is five acres in size and could EDA Minutes -March 19, 2003 Page 2 3-19-03 Page 3 of 5 accommodate the proposed 12,000 square foot building, future additions and possibly a city water tower and future police department office space, as that need arises. Hosch added that with proposed legislation the City Council is reviewing alternative sources of financing for the facility. He noted that with levy limits, the city would like to reserve its cash and the Council would like the EDA to act as a conduit financer issuing lease-revenue bonds to fund the project. The City would make lease payments to the EDA to allow the EDA to make its bond payments. This option would provide the City with the ability to levy; in the event this should be needed. Chairman Deutz noted he supports the construction of a new maintenance facility but has concerns with the proposed acquisition of Lots 1 and 2, Borgert Industrial Plat. He noted that the EDA's role is to encourage business development and expand the tax base. Deutz reported that he had contacted the County Assessor's office to obtain estimates on the potential tax revenue which could be generated from the two lots should an industry construct a facility with an assessed market value of $700,000 and the land have an assessed value of $75,000. He stated that the Assessor estimated a total annual tax of $26,000 of which $10,300 would be the city's share. Deutz also expressed concerns with possible changes in the project cost or scope after EDA approval of the project financing. For these reasons, Deutz noted he would not support the request for the EDA to facilitate the project with alease-revenue bond. Rieke noted that he believes the City needs to be visionary and look at the best long-term solution. He noted that the current site has space limitations for future expansion. He also noted that while the proposed purchase of Lots 1 and 2, Borgert Industrial Plat will remove land from the tax rolls, the purchase of any site will have the same result. He also noted that he has considered whether or not the city can afford to purchase the lot, but also whether or not the city can afford not to. He noted that land within the city is being developed at a rapid rate and sites such as this may not be available in the future. Ehlers departed from the meeting at 5:20 p.m. A joint session of the EDA and City Council was called to order at 5:30 p.m. by Mayor Hosch. In addition to the EDA members already present (Deutz, Rieke, Hosch and Skahen), the following were also present: Council members Alan Rassier, Gary Utsch and Dale Wick. Also present were Dick, Jim Marthaler, City Administrator Judy Weyrens and Dean Wick of Outsource Management. Mayor Hosch provided an overview of the request from the City Council for the EDA to authorize the purchase of Lots 1 and 2, Borgert Industrial Plat and to adopt two resolutions, which would initiate the process of issuing lease-revenue bonds for the financing of the maintenance facility for the city's public works department. Dean Wick, Outsource Management, discussed the current bid for $389,000 and noted that if the project is relocated to the alternate site the city could eliminate the cost of the sewage injector as well as the concrete retaining wall. He also noted that since another party has not acquired the current maintenance facility, the cost of demolition ($18,000) would need to be added to the current bid if the current site is utilized. He added that soil borings at the proposed site would be required. Deutz inquired if the possibility of expanding on the Lampert site adjacent to the current maintenance facility had been explored. Dick responded that this had been investigated and deemed undesirable. The water table on the lot is three feet below the soil and the soil is not appropriate for development. He reported that debris has been hauled into the area and utilities are not extended to that lot. Foust reviewed the process for the EDA and Council and distributed copies of a proposed project schedule, prepared by the city's bond counsel. It was noted that the EDA is being asked to take action on two items this evening (1) adoption of a resolution establishing procedures relating to compliance with reimbursement bond regulations under the internal revenue code and (2) adoption of a resolution initiating the process for adoption of a redevelopment plan. It was noted that the Council would take EDA Minutes -March 19, 2003 Page 3 3-19-03 Page 4 of 5 action on March 20th to call for a public hearing on the approval of the redevelopment area and that the EDA and Council would review the project and take action again at their regular meetings in April. EDA Action: Moved by Hosch, seconded by Skahen to adopt Resolution EDA03-01, A resolution establishing procedures relating to compliance with reimbursement bond regulations under the internal revenue code and Resolution EDA03-0, A resolution initiating the process for adoption of a redevelopment plan, which would address the financing of a maintenance facility for the public works department of the city, with the issuance of alease-revenue bond not to exceed $545,000. The Motion was approved 3-1 with Deutz voting nay. Moved by Rieke, seconded by Deutz to authorize EDA members Skahen and Hosch to facilitate the execution of a purchase agreement for Lots 1 and 2, Borgert Industrial Plat for a price not to exceed $225,000 with the purchase agreement contingent upon satisfactory soil borings and approval of the EDA financing via alease-revenue bond. Motion carried 4-0. The Council adjourned their meeting at 5:55 p.m. Mayor Hosch and Council members Gary Utsch and Dale Wick departed from the meeting along with Dick, Jim Marthaler, and Dean Wick of Outsource Management. The EDA continued with their regular agenda. Inventory of Available Commercial and Industrial Sites. Foust distributed a list of available commercial and industrial sites which was compiled following written and phone contact with various property owners. She noted that a few owners have not yet finalized information for the inventory including the American Legion which was going to be discussing the information at a meeting and Kresbachs who recently purchased the former K&L Partnership properties on the south side of County Road 75 on the east side of St. Joseph. High Speed Data Line. Foust provided an update on contacts Smith-Strack of MDG, Inc. had with both U.S. Cable and Astound regarding the installation of high speed data line in the commercial and industrial areas north of County Road 75. Rieke suggested contacting Cloud Net regarding wireless service. Deutz stated that a number of businesses has expressed a desire for the service and it will be a growing need, therefore he felt the EDA should facilitate this process. Administrator Weyrens noted that the City has a franchise agreement in place with Astound which may require them to install the service. It was the consensus of the EDA to have MDG, Inc. prepare and send a letter to Astound referencing the franchise agreement and requesting they move forward with the installation as soon as possible, as required under the contract. Prospect List/Activity Report. A report outlining communication with various contacts was included in the EDA's packet. A brief overview of several projects was provided. Board Member Announcements. Deutz clarified his support for the maintenance facility construction but opposition to the removal of land from the tax rolls, where he felt future industrial development could occur. Further discussion relating to this topic followed. Next Meeting The next official meeting of the EDA was scheduled for Wednesday, April 16, 2003 at 4:00 p.m. EDA Minutes -March 19, 2003 Page 4 3-19-03 Page 5 of 5 Adjournment Moved by Rieke, seconded by Deutz to adjourn. All present voted in favor of adjournment, the EDA meeting adjourned at 6:30 p.m. r~ ~~i~'%i4i4~~ ~~~ EDA Minutes -March 19, 2003 Page 5 THIS PAGE INTENTIONALLY LEFT BLANK