Loading...
HomeMy WebLinkAbout2003 [06] Jun 186-18-03 Page 1 of 3 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, June 18, 2003 Present: EDA Board Members Mike Deutz, Tom Skahen, Bruce Gohman and Larry Hosch. Absent: EDA Member Ross Rieke. Also present: Buettner Business Park owner Leo Buettner, Jerry Hettwer of Hettwer Realty and Cynthia Smith-Strack of Municipal Development Group. President Deutz called the regular meeting of the St. Joseph EDA to order at 4:05 p.m. Agenda. Moved by Gohman, seconded by Skahen to approve the agenda. During discussion of motion Deutz requested item 6(b) (Marketing Agreement -Buettner Business Park) be moved up on the agenda immediately following approval of minutes. Motion carried 4-0. Minutes. Moved by Gohman seconded by Skahen to approve the minutes from the special EDA meeting held May 12, 2003. Discussion followed regarding the accuracy of calculations included in the minutes. Motion withdrawn. Moved by Gohman seconded by Skahen to table the minutes of the May 12, 2003 Special EDA/CC Joint Meeting for comparison with the City Council meeting minutes. Motion carried 3:0 with Hosch abstaining. Moved by Gohman seconded by Skahen to approve the minutes of the May 21, 2003 EDA meeting as presented. Motion carried 3:0 with Deutz abstaining. Marketing Agreement -Buettner Business Park. Strack provided an overview of the marketing agreement for Buettner Business Park, including the term of the agreement and the pricing outlined within Exhibit B of the agreement. The agreement requires approval by the EDA and the Property Owners (Gloria & Leo Buettner) prior to increasing the price of the land. Strack further addressed a request from Mr. Buettner and Mr. Hettwer to the EDA, which noted that due to carrying costs, surveying and replatting costs, a price increase is needed. Strack indicated Mr. Buettner and Mr. Hettwer were present to request a formal price increase. Mr. Hettwer distributed a proposal on behalf of Gloria and Leo Buettner. The proposal requested consideration of the extension of the marketing agreement between the EDA and the Property Owner for an additional year (through September 27, 2004). The proposal also included price increases as follows: Lot 1, Block One Buettner Business Park (8.31 acres): $1.00/square foot Lot 1, Block One Buettner Business Park Two (3.34 acres): $1.00/square foot Lot 1, Block One Buettner Business Park Three (3.03 acres): $1.25/square foot Lot 2, Block One Buettner Business Park Three (3.0 acres): $1.25/square foot The prices noted were proposed to be effective from June 19, 2003 through December 31, 2003 with an additional review of pricing at that time. Hosch requested discussion as to whether or not the EDA President would have a conflict of interest on the pricing structure. Deutz excused himself and turned the meeting over to Vice President Hosch. Gohman indicated several events had transpired since the advent of the marketing agreement. Among them the securing of a commercial realtor by Mr. Buettner, a change from City-employed EDA staff to consultant EDA staff and several re-subdivisions of lots in the industrial park. EDA Minutes -June 18, 2003 Page 1 6-18-03 Page 2 of 3 Buettner indicated he felt the final sewer assessment was "forced on him" and he now had additional costs associated with the installation of utilities. Gohman commented that personally he did not believe pricing of the land was an EDA issue. He felt Mr. Buettner should be free to charge what he believes the property is worth. Gohman indicated he felt the EDA and Mr. Buettner needed to decide how to proceed. Gohman commented that dual representation of the property by a commercial realtor and the EDA staff could become confusing to development contacts. He also questioned the use of EDA resources to double up on a service provided for a fee by a commercial realtor. Hettwer indicated that he and Leo wished to extend the agreement because the development process includes approval by the EDA, the Planning Commission and the City Council. Gohman again commented that how to proceed, either to continue or cancel the marketing agreement, was his concern. Hettwer expressed a desire to continue working with the EDA through a marketing contract. Hettwer and Buettner exited the meeting for discussion. Hosch commented that the price of the lots would impact the city's desire to diversify its tax base. He indicated the proposed prices would increase development costs by either $12,642/3-acre parcel (for lots at $1.00/sq. ft) or $50,028/3-acre parcel (for lots at $1.25/sq ft). Hosch indicated a survey conducted on area industrial land prices a little over a year ago showed the current price to be moderately high. Hosch also expressed concern for existing contacts and how they would be informed of price changes. Hosch suggested more information be compiled by EDA consultants relative to the current market rate for industrial land. Skahen commented that he felt he needed more information and time to review that information prior to making a decision on the matter. Hosch also expressed an interest in receiving information on comparable pricing. Hettwer and Buettner returned to the meeting. Moved by Skahen seconded by Hosch to table the discussion until June 25, 2003 or July 1, 200, of which time a special EDA meeting would be held. Motion carried 3:0 with Deutz abstaining. Vice President Hosch turned the meeting back to President Deutz. EDA Accounts Payable. Strack provided an overview of accounts payable disbursement of $42,000 to St. Joe Development, contract in the amount of $1,859.55. including a Minnesota Investment Fund (MIF) loan LLC for the Vicwest equipment purchase and MDG Moved by Skahen seconded by Hosch to approve the EDA accounts payable in the amount of $43, 859.55 as presented. Motion carried 3:0 with Gohman abstaining. Financial Report Strack provided a brief overview of the financial report, including the transfer in and out of funds for the contribution to the Minnesota Community Capital Fund. Moved by Hosch, seconded by Skahen to approve the EDA financial report. Motion carried 4:0. High Speed Data Line EDA Minutes -June 18, 2003 Page 2 6-18-03 Page 3 of 3 Strack provided an update on the installation of high-speed data lines in the industrial areas of the City. A meeting with Astound and industrial property owners has been set for June 25, 2003 at City Hall at 9:00 a.m. Meeting notices had been mailed to 21 property owners. Gohman indicated Qwest had recently installed or was in the process of installing a 900 pair cable in the Elm Street right-of-way. Gohman suggested EDA consultants place remainder phone calls to all property owners invited to the event. Business Questionnaire. EDA members discussed the questionnaire developed to receive input from developers on the economic development, planning and administrative processes in St. Joseph. Strack noted of the initial 18 surveys mailed, four had been completed and returned to the City. Survey results were addressed briefly. Strack indicated MDG had identified an additional 38 contact to which the survey could be mailed. Moved by Gohman, seconded by Skahen to authorize and direct staff to mail the updated survey to remaining contacts. Motion carried 4-0. Change Order -Maintenance Facility Strack reviewed a change order in the amount of $65.00 for the Maintenance Facility. The change order was drafted at the direction of City staff. The change order was for the furnishing and wrapping of 14 transition strips of wainscoting from the front of the building to the east and west ends of the building. Board members expressed a concern as to the processing of change order requests. Moved by Gohman, seconded by Hosch to approve the change order and to clarify the change order approval contract with the City's representative for the project. Motion carried 4-0. 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 Reports. The EDA briefly discussed a letter sent to the EDA President from the Executive Director of the St. Cloud Area Economic Development Partnership. The letter requested consideration by the City of a joint membership to the Partnership shared by the College of St. Benedict, St. John's University and the City of St. Joseph. EDA members requested clarification of the fiscal impacts of the 2003 legislative session on the City's financial resources. City Administrator Weyrens joined the meeting and explained the impact of local government aid reductions. Following the budget discussion the EDA directed EDA consultants to prepare a response to the correspondence noting the City did not have financial resources available to participate even at a reduced level. Deutz expressed a concern of inconsistency in the application of the zoning code. Hosch indicated he would report on the matter at the upcoming Council meeting. Hosch informed the EDA of a decision by the City to review how building permits are processed. Weyrens announced a meeting with City Attorney Tom Jovanovich on Wednesday, June 25th at 7:00 p.m. at City Hall to discuss various land use issues and review request issues, Adjournment Moved by Hosch, seconded by Gohman to adjourn. All present voted in favor of adjournment, the EDA meets g adj~orurne ld/ t 6~: 0/5p. EDA Minutes -June 18, 2003 ~ Page 3