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HomeMy WebLinkAbout2006 [05] May 17CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes -Wednesday, May 17, 2006 Present: EDA Board Members Ross Rieke, Richard Carlbom, Carolyn Yaggie-Heinen, Ken Jacobson and Tom Skahen. Absent: None. Also present: Jim Degiovanni from Collegeville Development Group, City Administrator Judy Weyrens and Cynthia Smith-Strack of Municipal Development Group. Chairperson Rieke called the May 17, 2006 meeting of the St. Joseph EDA to order at 3:03 p.m. Agenda. Chairperson Rieke introduced the agenda. Moved by Skahen seconded by Jacobson to approve the agenda as presented. Motion carried 5-0. Approval of Minutes. EDA Chairperson Rieke noted the minutes from the April 19, 2006 meeting were included in the packet. Motion by Carlbom, seconded by Jacobson to approve the April 19, 2006 regular EDA minutes as presented. Motion carried 5-0. EDA Accounts Payable. Rieke introduced the topic. Strack noted accounts payable for the month included invoice for contract services in the amount of $2,122.60. The total hours provided through April 30th equaled 132, on target for the projected 420 hours of service for the year. Motion by Skahen, second by Carlbom to approve EDA accounts payable for the month of April 2006 in the amount of $2,122.60. Motion carried 5-0. Financial Report. Rieke introduced the agenda item. Strack noted the April financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Jacobson, second by Heinen to approve the April financial reports. Motion carried 5-0. Preliminary Application for Redevelopment TIF: Collegeville Development Rieke introduced the topic. Strack noted Collegeville Development Group submitted apre-application for Tax Increment Financing assistance for the construction of a 19,296 square foot mixed-use facility at the former Krebsbach Chevrolet site located at 25 East Minnesota Street. A copy of the TIF Pre-Application was included in the EDA information packet. Collegeville Development's Jim Degiovanni was present to answer questions regarding the preliminary application. The structure proposed by Collegeville Development is a two-story mixed-use facility with ground level retail/office and residential lofts (second story). The building design is reminiscent of traditional downtown buildings with a flat roof, balconies on the second floor and a building forward position on the lot. Parking will be provided to the rear of the facility and landscaped courtyard is proposed for the front of the lot at the corner of Minnesota and College. The applicant wishes to proceed with the expansion on a timely basis. The project can not commence until, if approved, a TIF agreement is signed. Commencement of any construction activity prior to the EDA Minutes -May 17, 2006 Page 1 signing of a TIF agreement will void any/all increment available to the project and therefore, the employment of tax increment financing. The applicants wish to proceed with site plan approval later this summer with construction anticipated to begin in the Fall of this year or Spring 2007. The proposed project is consistent with the comprehensive plan and the existing zoning class. Developer's are requesting pay-as-you-go redevelopment TIF for a period of up to 25 years. Increments are proposed to be used for costs associated with land acquisition, site preparation, demolition and utility placement/service/connection. Strack noted the City's TIF policy identifies standards/goals for the issuance of TIF, including attraction, retention and expansion of business and housing options in the City. In addition, the project appears to meet the following objectives as represented in the TIF policy: removal of blight and/or encouragement for redevelopment in the commercial and industrial areas of the City; providing for a balanced and sustainable housing stock meeting diverse needs both today and in the future; retaining local jobs and/or increasing the number/diversity of quality jobs; and, offsetting increased costs of redevelopment (i.e. contaminated site clean-up), over and above those costs that a developer would incur in normal urban and suburban development. The project received an aggregate rating of "5" on the City's TIF worksheet meaning the project is an 'excellent' use of TIF. The applicant has submitted pro-formas illustrating the project does not cashflow without TIF assistance. Jacobson inquired as to whether terms of the agreement could be structured so as to eliminate the TIF payment in the event all units were condominiumized and sold versus leased. Degiovanni noted the Company would consider agreement termination provided a reasonable return on initial investment is achieved. Motion Skahen, second Jacobson to recommend the City Council approve the preliminary TIF application and authorize/direct the assembly of required TIF plan/agreements. Motion carried 5-0. Downtown Revitalization Plan Review/Recommendation Rieke introduced the topic. Strack stated the Downtown Committee had completed ayear-long process researching a potential redevelopment project for the City's Downtown. Strack noted as a result of the process, the Downtown Committee intended to formally recommend the City Council proceed with a revitalization effort with the knowledge/understanding that while the City may convene the process, it must quickly be led by the private entities whose time and money will ultimately determine the effort's success. Strack stated the Downtown Committee had also created a strategic plan for revitalization. Acopy of the plan was included in the EDA information packet. The Downtown Committee/Strategic Plan concluded support for a revitalization plan existed provided the project was quickly turned over to the private sector for the 'heavy lifting'. The EDA briefly reviewed the strategic plan and associated work groups. Motion Carlbom, second Skahen to recommend the City Council approved the strategic plan and authorize the formation of four work groups and project initiation. Motion carried 5-0. 2005 Business Subsidy Reports. Rieke introduced the topic. Strack explained that cities with populations over 2,500 are required to submit annual reports to the Department of Employment and Economic Development detailing the status of local business 'subsidies' issued. The reports are due by April 15' of each year and had been completed by MDG, Inc. The report submitted report notes no new business subsidies were issued in 2005 and those previously issued had met job/wage goals. EDA Minutes -May 17, 2006 Page 2 Director's Report. Strack noted the she did not have an opportunity to draft the Director's Report due to a high volume of meetings on the day of preparation of packets. Board Member Announcements. Rieke updated Board Members on the SCAEDP meeting held earlier in the day. Rieke noted that the "Associate Memberships" were being successful and that the proceeds of the associate memberships were earmarked for marketing the St. Cloud area. Adjournment Motion by Skah/en, seconded by arlbom to a journ. Motion carried 5:0. Meeting adjourned at 4:42 p.m. L~~~- ~~ ~~~~~ EDA Minutes -May 17, 2006 Page 3