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HomeMy WebLinkAbout2002 [09] Sep 189-18-02 Page 1 of 3 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, September 18th, 2002 Present: EDA Board Members Larry Hosch, Bob Loso, Mike Deutz and Ross Rieke (4:17p.m.) Absent: Chairman Bruce Gohman. Also present: Cynthia Smith-Strack of Municipal Development Group. Vice Chair Hosch called the meeting of the St. Joseph EDA to order at 4:07 p.m. Agenda. Moved by Loso, seconded by Deutz. The agenda was approved as presented 3:0. Minutes. Moved by Hosch seconded by Deutz to approve the minutes of the August 215f, 2002 EDA meeting as presented. Minutes were approved 3:0 as presented. Accounts Payable. The EDA discussed accounts payable, including a TIF payment to Borgert Products/SKN Properties in the amount of $8,224.21 and the purchase of a computer for the EDA office. Moved by Deutz, seconded by Loso to approve August Accounts Payable. W-th all in favor, the accounts payable were approved 3-0. The 2003 EDA budget was discussed. Strack indicated the EDA had approved a preliminary budget in August, which the City Council then reviewed. The City Council ordered the EDA to reduce the preliminary budget by $8,500 and recommended the EDA consider not renewing its membership in the St. Cloud Area Economic Development Partnership. EDA member Ross Rieke arrived at 4:17 p.m. The EDA further discussed its membership in the Partnership. Moved by Deutz, seconded by Loso to decrease the EDA budget by $8,500 by allowing its membership to the SCAEDP to expire. Motion approved 4-0. Rieke suggested the EDA continue to pursue marketing opportunities for the City, perhaps through a partnership with area establishments. Rieke suggested specifically the development of a video to promote the community. Tax Increment Financing Report Card and Business Assistance Policy Update. Strack recounted the history of the TIF report card and the Business Assistance Policy. The EDA reviewed a summary of wages and occupational classes within the St. Cloud Metropolitan Statistical Area (includes all of Stearns County and a portion of Benton County). The summary was reviewed as a means of addressing wage issues in both the TIF report card and the assistance policy. Strack further explained the City is required to identify a calculable wage floor for providing assistance, which will be identified in the assistance policy and referenced in the TIF report card. A survey of area communities' wage floors was also discussed. EDA members discussed the importance of a wage floor which provides competitive and livable wages while at the same time does not prohibit (re)development and expansion of existing facilities. 9-18-02 Page 2 of 3 Motion Loso, second Deutz to set the wage floor at 100% of the median wage for the applicable job classification in the St. Cloud Metropolitan Statistical Area as defined by the Minnesota Workforce Center's most current report. Motion approved 3-1 with Rieke opposed. After establishing the wage floor, the EDA considered a revised Business Assistance Policy. The policy mirrors statutory requirements and identifies eligible business assistance uses, sets forth agreement requirements, outlines the process of implementing the policy and identifies required reporting criteria. Motion Rieke, second Loso to recommend the City Council approve the revised Business Assistance Policy. Motion approved 4-0. The EDA next considered the TIF report card. Consensus was to eliminate existing criteria #3 (ratio of City financing to new jobs created) as the standard appeared to be non-functional in a smaller city and TIF calculation changes have significantly reduced the amount of available TIF proceeds. The EDA reached consensus on criteria #4 (pay level of jobs). The EDA wishes to change from an average of all wages/year to a system which allows each individual job class to be examined on the basis of its adherence to wage floor requirements. Therefore: jobs paying 111 or more of the required wage floor will receive the highest ranking; jobs paying 101-110% of the required wage floor will receive the second highest ranking; jobs paying 100% will receive an average rating; jobs paying between 90-99% of the required wage floor will receive a poor rating; and, jobs paying below 89% of the required wage would fail. The overall ranking of this criterion is the average score of all jobs created. The EDA agreed to change the description of `value' in criteria #5 to `estimated market' value rather than 'real estate' value. Finally, the EDA reviewed bonus point standards and agreed to add/maintain standards associated with: redevelopment of a contaminated/environmentally challenged site; consistency with the Comprehensive Plan; need for commercial/industrial development within the City; redevelopment/historic preservation projects and projects requesting pay-as-you-go financing. The EDA requested staff update the report card and distribute to EDA members for one last review prior to approval. Comprehensive Plan Economic Development Chapter. Strack provided a brief overview of the economic development chapter of the Comprehensive Plan, including portions of the document wherein recommendations for actions were included. The EDA requested additional time to review the proposed chapter. The EDA further requested the chapter be re- mailed to each member for review/comment and their leisure. The EDA members will bring suggestions to the October meeting. Project Updates. A report outlining communication with various contacts was included in the EDA's packet. A brief overview of several projects was provided. MCCF. Strack provided an update on the MCCF, including a presentation made to the City Council by Fund Representative Tony Goddard. Strack also clarified revolving loan funds obtained via the Minnesota Investment Fund were not eligible for reimbursing the general fund for initial contributions to the MCCF. Board Member Announcements: None. Next Meeting The next official meeting of the EDA is scheduled for October 16, 2002. 2 9-18-02 Page 3 of 3 Adjournment Moved by Deutz, seconded by Rieke to adjourn. All present voted in favor of adjournment. The EDA meeting adjourned at 5:53 p.m.