HomeMy WebLinkAbout2005 [12] Dec 21CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes -Wednesday, December 21, 2005
Present: EDA Board Members Richard Carlbom, Bruce Gohman, Ken Jacobson, Ross Rieke and Tom
Skahen.
Also present: Cynthia Smith-Strack of Municipal Development Group.
Chairperson Rieke calved the December 21, 2005 meeting of the St. Joseph EDA to order at 3:00 p.m.
Agenda.
Chairperson Rieke introduced the agenda. Moved by Gohman seconded by Skahen to approve the
agenda as presented.
Motion carried 5-0.
Approval of Minutes.
EDA Chairperson Rieke noted the minutes from the November 16, 2005 meeting were included in the
packet.
Motion by Gohman, seconded by Jacobson to approve the November 16, 2005 regular EDA minutes as
presented. Motion approved 5-0.
EDA Accounts Payable.
Rieke introduced the topic. Strack noted accounts payable for the month included MDG contract.
Motion by Gohman, second by Carlbom to approve EDA accounts payable for the month of November
2005 in the amount of $2, 052.94. Motion carried 5-0.
Financial Report.
Rieke introduced the agenda item. Strack noted the October financial reports were included in the
packet. Reports presented included: revenue, expense, check register and fund balance.
Motion by Carlson, second by Jacobson to approve the November financial reports.
Gohman inquired as to the status of the 2005 TIF payment to St. Joe Development, LLC. Strack noted
she would follow-up with the City Administrator.
Motion carried 5-0.
Revised MDG Contract.
Rieke introduced this agenda topic noting the EDA was awaiting a phone call prior to initiating discussion
on the "Boot Camp for Site Selection Telephone Critique." Strack noted that MDG has been pleased to
assist the EDA/City with Economic Development Activities over the previous 4 '/z years and she
expressed a desire to continue with such services. Strack noted in August the EDA had allotted
additional resources to line items within the EDA budget relating to staffing services due to the potential of
hiring afull-time Community Development Director who would assist with economic development
opportunities in the City of St. Joseph. The EDA noted a consulting position would potentially be a fluid
one within the year 2006 and that the consultant may be called on to 'train in' a community development
director.
To those ends MDG, Inc. prepared a three alternative contractual agreements. The first based on a three
month contract, the second based on a six month contract and the final based on a 12 month contract
with a buy out clause for early termination of the contract.
EDA Minutes -December 21, 2005 Page 1
The EDA reviewed a letter containing proposal details and a sample contract proposed by MDG, Inc.
Motion Skahen, Second Jacobson to recommend the City Councilapprove a 12-month contract with
MDG. Inc. including abut'-out clause. All voted in favor of the agreement.
SCAEDP Boot Camp for Site Selection Telephone Critique.
Rieke introduced the agenda item in conjunction with a phone call from Mr. Jeff Wagoner, a site selection
consultant with Lockwood Greene. Strack noted the written response to the site selection request for
information submitted by the City/EDA had been completed and submitted via postal mail and reviewed
by Mr. Wagoner. Strack noted Jeff was on the phone and introduced members of the EDA to Jeff. The
EDA reviewed the proposal submitted by Strack with Mr. Wagoner. EDA members were allowed to ask a
variety of questions relating to site selection. The following items were specifically addressed:
The LG consultant suggested listing industrial sites on www.sitesacrossamerica.com but not
advertising in printed journals.
The LG consultant indicated another thing that he's seen become successful is the targeting of a
specific type of company (e.g. privately held industrial businesses in older urban neighborhoods
with 50 - 100 employees whose owners have rural ties) rather than a specific field (e.g. medical
device manufacturing, biotech, etc) since the specific fields usually need a support structure
including education (e.g. U of M research, Mayo Clinic research), access to air transportation and/or
an established 'anchor' (e.g. 3-M) industry which needs parts provided by vendors (spin ofd.
3. When site visits are held he suggests getting to know background info on who is attending and what
interest/position they have with the company. For example, if a person on the site visit is going to
have to relocate to the area then pair him/her with someone who can talk about quality of life (e.g.
cultural events, schools, rec. opportunities, etc.) whereas if someone in charge of logistics is visiting
they should be paired with an engineer who can answer questions about roadways, etc.
4. "Shovel ready" (ready to build) sites are essential.
5. When no realtor is involved on the sellers part, purchase options are usually required as opposed to
indicating the property owner is ready to sell (i.e. The City has executed an option agreement with
the property owner and the land is for sale for $xxxxx the number specified in the option).
6. Finally an alternate approach mentioned by Mr. Wagoner was working to give industrial REALTORS
incentives for locating businesses in the community. The LG consultant said a commission that's
perhaps done over a period of years and is tied to number of jobs created.
EDA Annual Report to City Council.
Rieke introduced the topic. Strack noted the EDA is required to submit an annual report on its activities to
the City Council in January of each year. Strack referenced the draft annual report included in the EDA
meeting packet. EDA Board Members noted a decrease in the number of leads produced in 2005.
Strack noted a change in the policy of recording leads which may have contributed to the lower number.
Strack noted in 2005 only leads that were judged to be solid were given a reference number. EDA Board
Members also noted an appreciation for the inclusion of charts and tables representing increases in the
commercial industrial tax base and the itemization of commercial/industrial building permits and
associated values.
Motion Carlbom, second Skahen to authorize and direct MDG, Inc. to submit the EDA Annual Report to
the City Council. Motion approved 5-0.
Director's Report.
Rieke introduced the topic. Strack noted a separate report on development contacts was not included in
the packet as the project updates were reflected in the monthly report. Strack noted that she had verified
Board Member Gohman's term would expire on January 1, 2006 but that Gohman was to retain the seat
EDA Minutes -December 21, 2005 Page 2
until another appointment was made. Carlbom inquired as to whether or not the EDA Bylaws contained
term limits in conjunction with EDA appointments. Strack indicated such term limits were not included in
the Bylaws. Carlbom inquired as to whether or not Gohman would consider re-appointment.
Board Member Announcements.
EDA Board Member reported he had spoken with the owner of the former Famo Feed Mill who indicated
his project was advancing, however, the number of required parking stalls required was still problematic.
Skahen reported the property owner was continuing to negotiate with adjacent property owners regarding
potential parking arrangements in addition to considering a decrease in the number of proposed units.
Gohman, Rieke and Carlbom noted they had attended the annual SCAEDP event held at the Kelly Inn.
The event's keynote speaker was Mr. Tom Petters. Gohman, Rieke and Carlbom noted the event and
Mr. Petters as a speaker were very engaging.
Gohman noted a private company is putting the finishing touches on establishing daily air service from
the St. Cloud Airport to Chicago's Midway Airport.
Strack noted the following items would be included in the January meeting agenda: a discussion of land
use (i.e. commercial) adjacent to the projection of 20th Avenue South and a summary of the boot camp
discussion held earlier at the meeting.
Adjournment
Motion by Skahen, econded by Gohman to adjourn. Motion carried 5:0. Meeting adjourned at 4:40 p.m.
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Cynthia Smith-Strack, EDA Consultant
EDA Minutes -December 21, 2005 Page 3