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HomeMy WebLinkAbout2003 [08] Aug 068-6-03 Page 1 of 2 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Special Meeting Minutes -Wednesday, August 6, 2003 Present: EDA Board Members Mike Deutz, Tom Skahen, Ross Rieke and Bruce Gohman. Absent: EDA Member Larry Hosch. Also present: Joanne Fosut of Municipal Development Group. President Deutz called the regular meeting of the St. Joseph EDA to order at 4:07 p.m. Agenda. Moved by Gohman seconded by Skahen to approve the agenda with the addifion of Business b. Update on High Speed Data Line to Business Parks. Motion carried 4-0. 2004 Preliminary Budget Foust noted that the City Council will be conducting budget meetings August 13th and 14th to review the preliminary budget which needs to be certified with the County in September. Since the next regular EDA meeting is not scheduled until August 20, 2003, a special meeting is being held to review and approve the preliminary budgets for EDA activities for 2004. Foust noted the EDA provides oversight to four funds including Fund 150 -the EDA's general operating budget, Fund 155 -the TIF 1-3 budget for SKN Properties/Borgert Products, Fund 156- the TIF 1-4 budget for St. Joe Dev. LLC/Vicwest project and Fund 250 -the Revolving Loan Fund. An overview of each fund was provided. The 2003 Budget for Fund 150 was $29,500. The proposed 2004 Budget for 2004 was $34,500 with the majority of the increase attributed to professional services. EDA discussion included the current contact for 35 hours per month. The actual number of hours per month have averaged 42. The increase in hours has been the result of five special EDA meetings for projects including the maintenance facility and review of the marketing agreement for Buettner Business Park. Several hours have been for follow-up to prospects. The proposed budget includes professional services for 35 hours per month, with an additional $2400 to cover any special projects that may require additional hours in 2004 (40 hours estimated). The budget also reflects an increase in the monthly rate from $1500 to $1650. The contract for economic development services will be reviewed in December. The figures were presented at this time for the purpose of preparing a preliminary budget. EDA members discussed the expiration of the marketing agreement for Buettner Business Park and potential impact on reduction in EDA hours needed to market the park. An increase in advertising expense was also suggested to allow for marketing projects in 2004. EDA members discussed the history of the EDA budget, which was $48,865.80 in 2001, was reduced to $34,585.27 in 2002, and $29,260 in 2003. A budget of $34,500 is proposed for 2004. Moved by Gohman, seconded by Skahen to approve the preliminary budget for Fund 150, the EDA's operational budget, for 2004 and recommend approval by the Cify Council. Motion carried 4:0. Foust noted that Funds 155 and 156 are both pay-as-you-go TIF districts. The EDA has development agreements, which commit 95% of the increment from 155 to the developer and 90% of the increment from 156 to the developer. Actual amounts received and expended may differ depending on actual tax rates after the city, county and school district certify their final budgets. EDA Special Meeting Minutes -August 6, 2003 Page 1 8-6-03 Page 2 of 2 Fund 250 includes revenues from the repayment of the $42,000 loan to St. Joe Dev. LLC for equipment for the new Vicwest building. A payment schedule was reviewed illustrating scheduled receipts. No loans out were budgeted for, but could occur in 2004. EDA members noted that revenues and expenditures for Funds 155, 156 and 250 are predetermined. It was the consensus to forward the budgets to the City Council for approval. High Speed Data Line Gohman requested an update on progress with Astound on the installation of a high-speed data line to service the business areas north of County Road 75. Foust reported that Mr. Tony Fernkes of Astound has reported he contacted six of the eight businesses that attended the meeting hosted by the EDA. He noted many had concerns with the high monthly access fee. As a result Astound is investigating other options. They hope to have an update early in September. EDA members discussed the importance of this technology for businesses and expressed a desire to proceed with obtaining this service through Astound or another company. EDA members directed MDG, Inc. to contact other providers to determine ability and cost to extend service. They also requested a follow-up letter be sent to the businesses that attended the meeting to determine their interest in alternative providers. Adjournment Moved by Ghoman seconded by Rieke fo adjourn. meetingdjourned at 5: ~t J ~,~~iG[ f~~40C ~~ All present voted in favor of adjournment, the EDA EDA Special Meeting Minutes -August 6, 2003 Page 2