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HomeMy WebLinkAbout2003 [08] Aug 208-20-03 Page 1 of 3 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, August 20, 2003 Present: EDA Board Members Mike Deutz, Tom Skahen, Bruce Gohman and Larry Hosch. Absent: EDA Member Ross Rieke Also present: Joe Prom, Joanne Foust of Municipal Development Group and City Attorney Tom Javonovich (4:32 p.m.). President Deutz called the regular meeting of the St. Joseph EDA to order at 4:10 p.m. Agenda. Moved by Gohman seconded by Skahen to approve the agenda, with Minutes from the July 30, 2003 Special EDA meeting moved after the discussion relating to the pay request for fhe Maintenance Facility. Motion carried 4-0. Minutes. Moved by Hosch seconded by Skahen to approve fhe minutes from the regular EDA meeting held July 16, 2003. Motion carried 4-0. Moved by Gohman seconded by Skahen to approve the minutes of the August 6, 2003 special EDA meeting as presented. Motion carried 3-1-0, with Hosch abstaining. EDA Accounts Payable. Foust provided an overview of accounts payable including the MDG contract for July in the amount of $1,848.55. Additional invoices for $750.00 to MDG Inc. for annual TIF Reports and $8,445.97 for the first one-half of 2003 TIF payment to Borgert Products/SKN Properties were also discussed. EDA members discussed detail provided for MDG Inc. invoices. Foust noted that supplemental information is submitted with the original invoice to City Administrator Weyrens and is on file. EDA members concurred it would not be necessary to include that additional information in EDA packets. Mayor Hosch noted the City is considering assigning minutes to clerical staff in the future. Moved by Gohman seconded by Skahen to approve the EDA August Accounts Payable in the amount of $11,044.52 as presented. Motion carried 4-0. Three invoices relating to the Maintenance Facility were also presented to the EDA for consideration including: $787.00 to Outsource Management Services for Construction Administration; $2,205.00 to Shingobee Builders, Inc. for Payment No. 2 and $183,114.00 to Shingobee Builders, Inc. for Payment No. 5. Foust noted the $183,144 in Payment No. 5 signifies 99% project completion. The pay request illustrates a 10% retainage for final project completion or approximately $47,000. Items noted by the EDA at the special July 30, 2003 meeting were reviewed. Deutz questioned UBC requirements for ceilings to be fire rated in maintenance facilities, if a portion of the building is being used for a shop. It was noted that the "eye wash" is not a Uniform Building Code requirement, but may be an OSHA requirement. An "eye wash" was not specified on the building plans. A couple of other items which are in the process of being corrected include the grading behind the building and the curb level. City Attorney Tom Javonovich reported that during a City Department Head meeting earlier in the day, it was suggested that the EDA appoint two representatives to conduct a walk through of the Maintenance Facility with Joe Bettendorf, City Engineer, Nancy Scott -City Bldg Inspector and Jim Marthaler -Public Works. The purpose of the walk through would be to itemize a list of items remaining to be completed, determine the percent of the project which is actually complete, the estimated cost to complete remaining EDA Minutes -August 20, 2003 Page 1 8-20-03 Page 2 of 3 items and determine the appropriate payment to Outsource Management Services for Construction Administration and Shingobee Builders, Inc. for construction. Javonovich noted that the EDAICity may withhold full payment if the architect finds the work has not been done or has been done incorrectly. Moved by Hosch, seconded by Gohman to approve payment to Outsource Management Services for Construction Administration and Shingobee Builders, Inc. for construction in the amount determined appropriate by City Engineer Joe Bettendorf, Building Inspector Nancy Scott, City Public Works Member Jim Marthaler, City Administrator Judy Weyrens and EDA Members Mike Deutz and Bruce Gohman, following a review of the building and site on Thursday, August 21, 2003. Motion carried 4-0. Moved by Hosch seconded by Skahen to approve the minutes of the special July 30, 2003 EDA meeting with a notation that Gohman was not present at the meeting. Motion carried 4-0. Financial Report Foust provided a brief overview of the financial report, noting the EDA has received the first half of 2003 of the transfer of funds from the city for 2003. Moved by Gohman, seconded by Skahen to approve the EDA August Financial Report. Motion carried 4- 0. High Speed Data Line. Gohman reported that he had contacted U.S. Cable regarding high speed data service. He noted that they are providing service to the new Knight Builders facility in Indian Hills Park. He noted Astound has service 300 feet from Gohman Construction, but has indicated they are unable to provide service. Foust noted that MDG, Inc. has contacted a number of providers to discuss the feasibility of extending service to the business areas on the northeast side of the community. A report was included in the EDA packet. It was the consensus of the EDA to continue to work with service providers to review options. City Attorney Tom Javonovich suggested the EDA contact Mert Auger, City ClerklTreasurer with the City of Buffalo, who recently extended city cable service and is selling service to businesses. EDA Members directed MDG, Inc. to investigate this option and check on the use of MN Community Capital Funds to assist in financing a municipal or EDA cable service and include this item on the September EDA agenda. Industrial Park Development. Foust reported that the EDA, as a part of the Comprehensive Plan, has identified a need to begin exploring options for a future industrial park. She noted past and current industrial land absorption rates and noted areas identified by the comprehensive plan for future industrial land use. Foust also reported on a new grant program available through the MN Department of Employment and Economic Development (DEED, formerly DTED) which will fund up to 50% of infrastructure costs for new industrial parks located outside of the seven county metropolitan area. The $7.5 million dollar fund program information was distributed. Mr. Joe Prom introduced himself to the EDA. He noted he was present at the meeting as he is one of the representatives of land, which is in the area identified for a future industrial park, which has been in an estate since the 1950s. He noted they may be interested in selling land in the next couple of years. He added that he feels a portion of the land, due to topography, may be more conducive for residential development, with a portion appropriate for industrial development. Foust explained the need for a Comprehensive Plan amendment in order to re-designate the land use. Hosch suggested the EDA begin the procedure of investigating a future industrial park now. He noted it is likely to be a lengthy process. EDA Minutes -August 20, 2003 Page 2 8-20-03 Page 3 of 3 It was the consensus of the EDA to direct MDG, Inc. to begin exploring the options for the development of a future industrial park including how the land would tie in with the future east-west corridor identified on the APO's map, funding options, land options, etc. Deutz indicated that he and Foust had discussed a couple of inquiries MDG, Inc. had received regarding the industrial park that he and three other partners are developing in the township, northeast of St. Joseph city limits. Foust noted that a couple of individuals inquired if Deutz would have aconflict-of- interest either working on a new industrial park or by having access to business leads as a member of the EDA. Deutz indicated that he had no intention of using contacts for his personal benefit, as he receives the Prospect List/Activity Report with business codes rather than business names and numbers, like other EDA members and the public. City Attorney Javonovich noted that there are two types of conflict-of-interest, "official" and "general". He noted there is not an official conflict-of-interest as the EDA/City does not have a contract with Deutz or his business which would provide direct or indirect financial benefit to him. He noted that with perception of conflict-of-interest, he would need to conduct further research on case study to determine if there is a general conflict-of-interest. EDA members expressed their support for Deutz as an EDA member and the expertise he brings to the board. They also discussed any liability to Deutz and/or the EDA and method of handling the perception of conflict-of-interest by parties. City Attorney Javonovich noted that at the Mayor's request he could prepare an official option and outline options. The EDA took no formal action on this. Foust asked the Board for direction on handling business inquires which request a one or two acre parcel of industrial land, if there is no land within the corporate limits which meets the businesses' needs. EDA members concurred that land within the city limits should be explored first. If no sites are available, the business should be referred to the Partnership. Prospect List/Activity Report. A report outlining communication with various contacts was included in the EDA's packet. Foust noted additional information on the contacts is available to EDA members upon request. Director's Report. Foust reported the City Council would be reviewing a new fee schedule for water and sewer access charges (WAC and SAC) at their September 4, 2003 meeting. The proposed fee schedule is similar to the schedule used by metropolitan communities and supported by the Met Council. It is intended to be more equitable with charges being higher for higher water and sewer users and lower for residents and businesses with lower usages. Board Member Reports. There were no Board Member Reports. Adjournment Moved by Skahen seconded by Deutz to adjourn meeting adjourned at 6:15 p.m. All present voted in favor of adjournment, the EDA EDA Minutes -August 20, 2003 Page 3