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HomeMy WebLinkAbout2004 [09] Sep 15CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, September 15, 2004 Present: Chairperson Ross Rieke, Board Members Larry Hosch, Tom Skahen and EDA nominee Ken Jacobson. Absent: Bruce Gohman. Also present: Deb Schmidt, Nancy Sabin, Gary Gullo and Dr. Jerry Wetterling representing the Jacob Wetterling Foundation; Jeff Ramler of SafeShred, Inc.; Robert Strack of Strack Construction; Jerry Hettwer of Hettwer Real Estate Services; Alex Vincent and Jennifer Urban of Midnight Haulers; and Cynthia Smith-Strack of Municipal Development Group. Chairperson Rieke called the regular meeting of the St. Joseph EDA to order at 3:05 p.m. Agenda. Moved by Skahen seconded by Hosch to approve the agenda with the advancement of item 5(a) to the first agenda item following approval of the agenda. Motion carried 3-0. Oath of Office - Mr. Ken Jacobson. Chairperson Rieke introduced the nominee selected by the Mayor/City Council to fill a vacant EDA Board position as Mr. Ken Jacobson of CMS Autobody. Rieke administered the oath of office to Mr. Jacobson. The EDA congratulated Mr. Jacobson and welcomed him to the Board. Approval of Minutes. Chairperson Rieke introduced approval of the minutes from the Wednesday, August 11, 2004 EDA meeting. Motion Skahen, seconded by Hosch to approve the August 11, 2004 Regular EDA minutes as presented. Motion approved 3-0 with Jacobson abstaining. EDA Accounts Payable. Strack provided an overview of the accounts payable and noted banked hours owed to the City by MDG. Motion by Hosch, second by Jacobson to approve EDA accounts payable in the amount of $2,218.70. Motion carried 4-0. Financial Report Strack indicated that financial reports for August were not available due to a staffing change in the City Accountant position. Reports for the months of August and September will be included in the October EDA packet. Revised SafeShred SitelLandscaping Plan. Chairperson Rieke introduced the item and noted the presence of the property owner, Jeff Ramler and the Building Contractor Robert Strack. EDA Director Strack provided an overview of the agenda item noting the landscape/site plan approved by the EDA at its August 11, 2004 regular session had been significantly altered and the amount of vegetation that was proposed had been significantly reduced. Strack informed the EDA that proposed revisions necessitated further approval by the Board as they altered the status of compliance with covenants applicable to industrial parcels within the Buettner Business Park, Buettner Business Park II and Buettner Business Park III subdivisions. EDA Minutes -September 15, 2004 Page 1 EDA Director Strack updated the Board on a recommendation forwarded by the Planning Commission which suggested the installation of two shade trees in the side yard at the front building setback line. Strack further indicated staff recommended approval of the revised landscape plan contingent of the following: 1. Reconfiguration of the proposed shade tree/shrub layout to meet the covenant's required thirty-five foot spacing criteria and the addition of four shrubs to the proposed front yard landscaping adjacent to the parking lot; 2. The installation of the required three (3) foot drop in elevation between 15`h Avenue and the parking lot or amendment of covenants; 3. A finding that 'as much adornment as possible' has been added to the front of the building'; and 4. The installation of screening to minimize visibility of the overhead garage doors on the north side of the facility from the side yard of the lot directly north of the subject parcel. Robert Strack approached the Board and distributed copies of a second revised landscape plan which depicted the reconfiguration of the proposed shade tree/shrub layout adjacent to the parking lot to meet the covenants required 35 foot spacing criteria further noting the addition of four shrubs to the front yard landscaping (adjacent to parking lot) and the addition of two trees in the side yard near the front building line setback. In addition Robert Strack distributed photos of adjacent developments within Buettner Business Park illustrating the absence of a drop in grade from the street to the parking lot. In addition, Mr. Strack noted the elevations on the Ramler lot were not conducive to the installation of a three-foot drop in grade from the public right-of-way to the parking lot as it would severely compromise the integrity of the rear lot as it related to storm water drainage/ponding. The EDA Board discussed the requirement fora "three-foot drop in grade from the public right-of-way to the parking lot" as Section 3.02 of the covenants. The EDA noted this standard has been seemingly overlooked in the past or not enforced upon construction. The EDA directed staff to begin gathering signatures for an update of the covenants relative to the elimination of this requirement. The EDA Board also discussed the phase within the covenants requiring 'as much adornment as possible' for the portions of building facades facing public rights-of-way as it relates to pre-cast or cast-in- place concrete construction. The EDA concurred the quality of the choice of construction added to the value of the construction and that the amount of proposed adornment on the front of the building was adequate. Motion by Skahen, seconded by Hosch to approve the revised landscaping/site plan for SafeShred contingent on (1) the recontiguration of the trees/shrubs in the front yard in a manner meeting the requirement for a lineal screening adjacent to parking lots (one tree and four shrubs every 351ineal feet); (2) the addition of two trees along each side yard abnear the front building line and (3) the addition of shrubs adjacent to the overhead doors on the north side of the building. Motion carried 4-0. Presentation -Jacob Wetterling Foundation. Chairperson Rieke introduced representatives from the Jacob Wetterling Foundation (JWF) and noted their desire to present information to the EDA regarding JWF offices in St. Joseph. JWF Executive Director Nancy Sabin and JWF Board President Gary Gullo presented information to the EDA which explained the purpose of the Foundation, the Foundation's budget considerations and possible options for continuing storefront service in St. Joseph. The JWF offers programs and services to the community designed to protect children. The JWF storefront operations in St. Joseph currently cost approximately $75,000 per year to operate. The JWF is in need of strategies to decrease costs associated with storefront operations in St. Joseph or the facility is in danger of closing. EDA Minutes -September 15, 2004 Page 2 Potential strategies identified during the presentation to reduce storefront operational costs included: 1. Receiving assistance from the EDA, civic organizations and/or other community organizations such as rent subsidies, donated rental space or cash donations. 2. Receiving funding assistance from the Central Minnesota Initiative Foundation. 3. Organizing a special event within the community to raise additional funds. 4. Closing storefront operations in St. Joseph. The EDA thanked the JWF representatives for their professional presentation, their service to the community and their desire to remain within the community. Request for Economic Development TIF Assistance -Midnight Haulers. Chairperson Rieke introduced the agenda item. Strack provided a summary of the request to the EDA Board. Midnight Haulers, Inc. is the current tenant in the former VicWest facility at 828 19'" Avenue NE. The company is proposing purchase of the building and a 13,500 square foot cold storage expansion. The company has submitted apre-application for tax increment financing assistance to the City. Eligible uses for economic development TIF proceeds do not include the purchase of buildings or costs for building construction materials/labor. Expenses applicable to site preparation, parking, utility improvements, etc. are eligible uses of TIF proceeds. The company proposed the addition of seven jobs to the community within the next two (2) years, all of which exceed the (City) business assistance policy's required 100% median wage for the job class in the St. Cloud MSA. The proposal is for pay-as-you-go assistance. Total project cost is estimated at $1.22 million with a possible $64,000 available to the project in TIF. Strack provided an overview of the project as it relates to the City's TIF policy noting a need for the demonstration of a gap in project financing, the need for identification of eligible uses and the need for due diligence in reviewing personal and corporate financial documents in conjunction with a final application submittal, if authorized. The application as evaluated through the TIF 'Report Card' finds the proposed use of TIF a 'good' to `very good' use of the incentive. Strack alluded to outstanding zoning and building code compliance issues which would need to be resolved prior to formal approval of any form of business assistance. Representatives from the company provided information on the company, its operations and major clients. Motion by Hosch, second by Skahen to recommend the City Council approve the pre-application for pay- as-you go economic development TlF assistance and authorize submittal of the final application and fee conditioned on the prior resolution of outstanding building and zoning code compliance issues and contingent upon the identification of a specific eligible uses of TIF proceeds. Director's Report. A prospect list/activity report outlining communication with various contacts was included in the EDA's packet. In conjunction with the Director's Report, Strack updated the EDA on the preliminary 2005 budget. Strack indicated the membership to the Partnership have been included in the preliminary budget and that the Council would like the SCAEDP Executive Director to present information on membership prior to the final budget hearing. Strack also informed the EDA the City Auditor had commented on the revenue stream for the EDA. The Auditor had indicated that either a transfer from the general fund or the institution of the .01837% statutory levy were available as revenue streams for the EDA but not both. It was further noted the .01837% levy would not adequately fund EDA operations, therefore the EDA will not exercise its statutory levy authority. EDA Minutes -September 15, 2004 Page 3 Board Member Announcements. None. Adjournment Motion by Hosch seconde by Skahen to adjourn. Motion carried 4:0. Meeting adjourned at 4:55 p. m. EDA Minutes -September 15, 2004 Page 4