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HomeMy WebLinkAbout2002 [06] Jun 196-19-02 Page 1 of 3 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, June 19th, 2002 Present: EDA President Bruce Gohman, EDA Board Member Ross Rieke and EDA Board Member Mike Deutz. Absent: Mayor Larry Hosch, Council/Board Member Bob Loso Also present: Cynthia Smith-Strack of Municipal Development Group. Mr. Scott Martin, representing the Minnesota Community Capital Fund (4:20 p.m.). President Gohman called the meeting of the St. Joseph EDA to order at 4:07 p.m. Agenda: Moved by Deutz, seconded by Rieke to approve the agenda as presented. The agenda was approved 3:0. Minutes: Moved by Duetz seconded by Rieke to approve the minutes of the May 15, 2002 EDA meeting as presented. Minutes were approved 3:0. Accounts Payable: The EDA discussed accounts payable and requested a quarterly income statement be provided for review beginning with the close of the second quarter. The EDA requested Municipal Development Group break out hours/mileage for St. Joe Development, LLC (TIF, MIF and IDB) retroactive to receipt of the TIF application and associated fee (May 15, 2002). Said expenses are to be billed to St. Joe Development, LLC in care of the City of St. Joseph and reimbursed from the application escrow. Moved by Deutz, seconded by Rieke to approve the May Accounts Payable. Accounts payable were approved 3-0. Financing Package: St. Joe Development, LLC/VicWest Strack provided an overview of the project, an update of the status of applicable materials (TIF Plan, Development Agreement, MIF application) and a review of the upcoming action before the EDA at the special meeting on June 27th. EDA members were advised to attend the special meeting to ensure a quorum. President Gohman was asked to excuse himself from the June 27th meeting. Commercial Redevelopment Strack provided an update on the commercial redevelopment project was provided. Follow up calls have been made to identified property owners. Following discussion, MDG was directed to place afollow-up phone call to the owners of the floral shop identified as a possible site for redevelopment. The purpose of the follow-up call will be to gauge interest in participating in a redevelopment effort or relocation. St. Joseph Beautification Project EDA Board Member Deutz presented a project map depicting the locations for decorative street light placement and brick paver highlights in the College Avenue/CSAH 121 right-of-way. Strack 6-19-02 Page 2 of 3 provided an update on efforts to seek funding participation by local utility providers. Letters were mailed to identified companies. No responses were received at this point. Following discussion, MDG was directed to place afollow-up phone calls to Xcel Energy, Stearns Electric, Astound and the Initiative Foundation and report back to Board Member Deutz the following week. MDG was also instructed to research how the Healthy Communities Partnership planned to dispose of funds received from the Initiative Foundation. Finally, MDG was instructed to seek additional information regarding the status of an estimated $15,000 City fund previously earmarked for the development of a community center. Presentation Mr. Scott Martin, representing the Minnesota Community Capital Fund (MCCF), arrived at 4:20 p.m. The presentation was moved up on the agenda to accommodate the associated timeframe. Mr. Martin addressed the EDA presenting a detailed review of the history of the MCCF, the purpose of the MCCF, how the MCCF is administered and MCCF benefits to members organizations. Among highlights: • MCCF is currently enrolling member organizations (cities, counties, EDA's, HRA's, Economic Development Partnerships, etc.). Three levels of membership based on contribution. • Contributed funds are pooled into a single entity (MCCF), which is managed by a board of elected members and financial professionals. Operational costs for the fund are covered by interest earnings from the MCCF and a required borrower loan origination fee of 1.75%. • Loans may be issued for economic (re)development and affordable housing projects, minimum amount is $50,000. Communities may continually issue loans for up to ten times the amount of capital contributed (e.g. $250,000 if $25,000 is contributed). A credit reserve of 5-10% is required for the first 12 months while the loan is seasoned. The credit reserve is the responsibility of the City. • Loans issued are immediately sold in the secondary market so the fund is continually re-capitalized. • The secondary market sets the pace for loan criteria. For the first two years the MCCF is operating, the secondary market entity is the Community Reinvestment Fund (Minneapolis). If below market rates are offered, the community will be responsible for covering the discount at the time of closing. Loans at par are recommended. Premiums are also an option (i.e. for extended terms), in this case the premium is forwarded to the City. • Capitalization goal required to start up the MCCF is $2.5 million by October, 2002. If capitalization goal is not achieved by that point, the fund will be dissolved and monies re-distributed to those contributing. Entities already enrolled include: St. Cloud HRA, Hutchinson, Fergus Falls, Duluth, Detroit Lakes, Tracy, Wright County, Brainerd and various economic development coalitions. TIF Report Card Due to time constraints this item was tabled until the July, 2002 EDA meeting. Comprehensive Plan Update Strack reported on the St. Joseph Comprehensive Plan update as it relates to economic development activities. A `Business Meeting' is scheduled for Thursday, August 1, 2002 at 12 noon at the Fire Hall to obtain input from St. Joseph businesses relative to the Comprehensive Plan update. 6-19-02 Page 3 of 3 Project Updates 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: None. Next Meeting The next official meeting of the EDA was scheduled for July 17, 2002. Adjournment Moved by Rieke, seconded by Deutz to adjourn. All voted in favor of adjournment, the EDA meeting adjourned at 6:03 p.m.