HomeMy WebLinkAbout2003 [10] Oct 1510-15-03
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CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes -Wednesday, October 15, 2003
Present: EDA Board Members Mike Deutz, Bruce Gohman, Larry Hosch, Ross Rieke and Tom Skahen
Also present: Joanne Foust of Municipal Development Group and Michael Muggli and Reed Bolinger of
Cloudnet.
President Deutz called the regular meeting of the St. Joseph EDA to order at 4:05 p.m.
Agenda.
Moved by Hosch seconded by Skahen to approve the agenda, Motion carried 5-0.
Minutes.
Moved by Gohman seconded by Skahen to approve the minutes from the regular EDA meeting held
September 17, 2003. Motion carried 5-0.
EDA Accounts Payable.
Foust provided an overview of accounts payable including the MDG contract for September in the amount
of $1,849.95. Foust noted MDG, Inc. drew down 4.0 hours from banked hours, during September. Also a
$400.00 invoice from Stearns Co. for TIF 1-4 certification was discussed. Foust noted this is a one-time
certification fee for the Vicwest project. She noted that it has not been common practice for counties to
charge this fee and that in the future the EDA may wish to require this be paid from the developer's
escrow. EDA members concurred that this fee should be paid from the 10% administration fee, which will
be retained from the district's tax increments generated.
Moved by Skahen seconded by Rieke to approve the EDA October Accounts Payable in the amount of
$2,249.95 as presented. Motion carried 4-1-0, with Gohman abstaining.
Financial Report
Foust provided a brief overview of the financial report noting revenues as of October 8, 2003. Foust also
noted that the revolving loan fund payments are current, but have not yet been posted to this account due
to the resignation of the city's accountant.
Moved by Hosch, seconded by Skahen to approve the October financial report. Motion carried 5-0.
Maintenance Facility.
Shingobee Builders has requested approval of the release of the retainage for the maintenance facility, in
the amount of $46,425. In addition, Outsource Management Services has requested payment in the
amount of $787 for architectural services. The City Administrator has recommended approval of payment
to Shingobee Builders in the amount of $46,425 and to Outsource Management Services in the amount of
$587, retaining $200 for items to be finalized.
A list of all change orders prepared for consideration and those approved were provided for EDA
members' review.
EDA Commissioners discussed the berm and need to finalize seeding. Hosch noted he would ensure
this is finalized.
Moved by Skahen seconded by Rieke to approve the release of the retainage to Shingobee Builders in
fhe amount of $46,425 for the maintenance facility and approve payment of $587 to Outsource
Management Services for architectural services for the maintenance facility for invoice #10186. Motion
carried 5-5.
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Water and Sewer Access Charges.
The City Councit is considering an amendment to Sections 41.2, Subd. 2 of the City Code and adoption of
a new Ordinance 44 that would provide a more equitable means of collecting water and sewer access
charges. The City Council has conducted a public hearing on a proposed fee schedule and has tabled
action to obtain more input and conduct further research. The EDA has been asked to provide input on
the proposed schedule as well.
Commissioner Gohman noted that he felt the proposed fee schedule would be counter-productive to EDA
activities which promote commercial and industrial development. He noted that fees appear to favor
residential development and unfairly penalize commercial and industrial facilities. He suggested actual
water usage reports be used to establish benchmarks for fees, adding that a residential home with use of
dishwashers, showers, restrooms and washing machines are more likely to consume much more water
and sewer than an accounting office or similar commercial use.
Gohman also indicated that Sections 44.2 and 44.3 of the proposed ordinance require connections to be
completed within two weeks of the issuance of a permit. He indicated that on large commercial and
industrial projects this may not be feasible and recommended an extended period such as two months.
Hosch noted that he felt EDA input was important and he agreed that perhaps the fees should be based
on the number of employees or usage rather than square footage of a structure.
Rieke indicated that since water is a measurable commodity, it may be possible to instill a lower initial fee
and invoice for a second payment if actual usage is higher than anticipated. The ability of the City's
software program to track actual usage and trigger a second invoice will be investigated.
EDA members requested the WAC and SAC schedule be included on either a special meeting agenda or
the November 19, 2003 agenda for further review and input. They requested information on actual water
usage of the various types of businesses on the fee schedule for that meeting.
High Speed Data Line.
Several providers have been contacted since the last meeting including Astound, Quest, MN Technology
and the City of Buffalo. Rieke introducted Mike Muggli and Reed Bolinger of Cloudnet. He noted that
two weeks ago he had stopped at Cloudnet to discuss the need for high speed Internet service in the
business park area. He and Foust met with Muggli and Bolinger which resulted in the testing of Cloudnet
equipment from the Maintenance Facility site. Mike reported that they have been providing wireless
service to some of the businesses in the community with line of sight technology. Others they have been
unable to service. They have a new technology which should be able to serve this business area as well
as a three (3) mile radius. Each business would need to install a panel and radio unit, which is
approximately one square foot in size. This would be a .one time $600 equipment charge. A six (6) to
eight (t3) foot whip antenna would serve as the distribution point and could be installed at the maintenance
facility, water tower or on a roof of a private business. Cloudnet rates would depend on the service
package but would range from $45 per month for 256 K bandwidth to $85 per month for 512 K bandwidth.
They are also able to provide service up to 2 MB, which provides faster speeds than a T-1 line.
Gohman reported that he had recently met with representatives from US Cable and provided them with
an easement on his property. They will now be able to serve an additional four or five businesses in that
area including W. Gohman Construction, Spring Green, the Vet Clinic and the U.S. Army site. He noted
that Borgert Products still needs service.
EDA members thanked Mike and Reed for attending and encouraged them to meet with local businesses
to discuss potential new clients and follow-up with the city staff if a site is needed for the distribution
whip/antenna.
Prospect ListlActivity Report.
A report outlining communication with various contacts was included in the EDA's packet. Foust also
noted that Safe Shred may be submitting their building and site plan in the next couple of weeks. She
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inquired if the EDA would be open to reviewing the plans after the November 3, 2003 Planning
Commission meeting, if plans are submitted in the next week, or if they would like to have a special
meeting. EDA Commissioners noted they would prefer a special meeting to review the drawings prior to
the Planning Commission. WAC and SAC fees could be reviewed at that meeting as well.
Board Member Reports.
Deutz provided a handout illustrating projected tax calculations. He noted that the County Assessor's
Office indicated that as a general rule-of-thumb, taxes for commercial/industrial properties are
approximately 3% of the estimated market value. The County can provide more detailed estimates to
businesses seeking closer estimates.
Deutz removed himself from the EDA and turned the meeting over to Vice President Hosch. Deutz noted
he had a letter, prepared by his attorney, to present to the EDA regarding the industrial park he is a partial
owner of and his role on the EDA. He noted he had forwarded a copy to the City Attorney for review as
well.
Moved by Gohman, seconded by Rieke to accept as a part of EDA records a letter from Mike Deutz
regarding his irnancial involvement with an industrial park located in St. Joseph Township, in response to
the City Attorney's letter dated September 11, 2003 regarding the potential perceived conflict-of-interest,
noting that this letter meets the following procedures recommended by the attorney including; (1) A
written statement has been prepared regarding the nature of the potential conflict of interest, (2) the
statement has been submitted to the EDA Commissioners, (3) The disclosure is noted in the official EDA
minutes and (4) Commissioner Deutz shall not be involved in any negotiations or action relating to the
industrial park and shall not attempt to influence anyone relating to action or decision regarding the
industrial park or take action or decision relating fo the industrial park. Motion carried 4-0 (Deutz not
present as a EDA member).
Deutz returned to his EDA seat.
Hosch reported that the City had received preliminary calculations from the County which illustrate the
City's portion of the tax rate has decreased for taxes payable 2004. Hosch noted he had not seen the
county or school districts tax rates yet.
Moved by Gohman, seconded by Hosch to adjourn. All present voted in favor of adjournment, the EDA
meeting adjour//n''ed at 5:08 p.m.
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