HomeMy WebLinkAbout2006 [09] Sep 20CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AURHTORIY
Meeting Minutes -Wednesday, September 20, 2006
Present: EDA Board Members Ross Rieke, Caryolyn Yaggie-Heinen, and Ken Jacobson.
Absent: Tom Skahen and Carlbom.
Also Present: Cynthia Smith-Strack of Municipal Development Group and Mai Yang
Agenda
Chairperson Rieke introduced the agenda. Strack requested the addition of a discussion
regarding a joint bioscience zone acreage allocation to Section Five on the agenda. Moved by
Jacobson seconded by Heinen to approve the agenda as amended.
Motion carried: 3-0.
Approval of Minutes.
EDA Chairperson Rieke noted the minutes from the July 19, 2006 meeting were included in the
packet. Strack explained that approval of the July 19th meeting minutes was tabled in August
since several members of the EDA were not present at the July meeting and wished to abstain
from any motion. Rieke noted the minutes from August 16, 2006 meeting included in the packet.
Motion by Jacobson, seconded by Heinen to approve the minutes from the July 19th and August
16th, 2006 regular EDA meetings as presented. Motion carried: 3-0.
EDA Accounts Payable.
Rieke introduced the topic. Strack noted accounts payable for the month included an invoice for
contract services in the amount of $2,152.82. The total hours provided through August 31~` equal
271.25, on target for the projected 420 hours of service for the year.
Motion by Jacobson, seconded by Heinen to approve EDA accounts payable for the month of
August 2006 in the amount of 2,152.86. Motion carried 3-0.
Financial Report.
Rieke introduced the agenda item. Strack noted the August financial reports were contained in
the packet. Reports presented included: revenue, expense, check register and fund balance.
Motion by Jacobson, seconded by Heinen to approve the August financial reports. Motion carried
3-0.
CSAH 75 Renewal Project
Rieke introduced the topic and requested Strack explain the draft corridor renewal plans for the
first tier of lots adjacent to CSAH 75 between 2"d Avenue and NW and 3~d Avenue NE. Strack
reviewed items included in the information packet including a parcel map of the area of potential
interest, spreadsheets containing information regarding each property and redevelopment
projections and analysis of potential impediments to redevelopment of the sub area.
In the first tier of lots (sub area A) the development cost analysis resulted in an estimated
development cost of $3,106,067. The second tier of lot (sub area B) resulted in an estimated
development cost of $3,546,943.
The existing properties within Subarea A are zoned Highway Business and Single Family
Residential. Subarea B is zoned Single Family Residential and General (Downtown) Business.
The future land use for Subarea A is a combination of Highway Business and Single Family
Residential. In Subarea B future land use is guided toward Single Family Residential and
General Business. If vehicular oriented redevelopment is to occur in the subareas, rezoning and
comprehensive plan amendment requests would be required. A potential significant impediment
to redevelopment as asuper-majority vote is required to amend the Comprehensive Plan.
Strack not next reviewed potential transportation issues associated with any type of
redevelopment within Subarea A or Subarea B. Strack noted preliminary feedback from the
County Engineer included a likely need for a left turn lane at the intersection of College Avenue
North and Ash Street E and a right turn lane at College Avenue N. Strack suggest planning for
an alternative access to the subareas either from Ash Street or the interior east/west alley, since
turning movements from Birch Street to CSAH 75 are curtailed. The EDA noted this is a potential
impediment to redevelopment of the subareas.
Rieke suggested finding out whether or not the two businesses in the first tier would be interested
in relocating. Rieke suggested City staff be informed of the CSAH 75 renewal project and
comments from staff be requested. The EDA noted a desire to reach out to the Planning
Commission and City Council regarding any potential renewal activity. A next step would consist
of considering comprehensive plan amendment and rezoning requests as a means of reducing
impediments to redevelopment.
Business Retention and Expansion Program Update
Rieke introduced the agenda topic and requested an overview of the program from Yang. Yang
updated the EDA members with a PowerPoint presentation on Business Retention and
Expansion Program (BRE) and updated the Board Members on a presentation to the Chamber of
Commerce. In addition to the Chamber presentation, Yang noted she sent out a press release to
the Newsleader for publication consideration. Yang shared with the members that BRE is
available online for easy access and download. The next step to the BRE program will be
contacting businesses to schedule site visits and follow up with urgent issues that need to be
addressed in the short-term.
Strack stated that Yang should visit Daniel Funeral Home and Complete Electronic by next
meeting.
Project Inventive Analysis
Rieke note the topic on the agenda. Strack stated that the previous meeting EDA Board
members requested information regarding available incentives be compiled for potential
distribution to business owners within the renewal area north of CSAH 75. In further discussion
note specific incentives available for specific projects would vary widely with commercial
incentives. Strack introduced three type of incentives that are available: tax abatement, local
revolving loan fund (RLF) and the Minnesota Community Capital Foundation (MCCF).
The analysis of tax abatement assumes 100% of the City's portion of property taxes will be
abated for a term of ten years. The incentives policy precludes the issuance of bonds with debt
retired from abated taxes, instead of "pay as you go" is employed.
Other available incentives is St. Joseph Revolving Loan Fund and Minnesota Community Capital
Foundation (MCCF). St. Joseph Revolving Loan Fund has a current balance of $20,000. It has a
maximum term of seven years for material expense and 15 years for real estate purchase.
MCCF is a program available statewide to loan funds to qualifying businesses, which cannot
secure conventional financing or SBA loans to cover project costs.
The EDA request $10,000 be included in the annual CIP budget to capitalize the fund. The
funding can be use for number of purpose including purchase of option by the EDA. This would
include a matching grant to business of an X amount to pursuing building enhancement or for
short-term loan for construction activities of an X amount.
Heinen believe this is a great idea and would like business along CSAH 75 to be aware of this.
Wanted to know how much it cost to send this information out to them.
Jacobson suggest having coupons for permits to do improvements. The purpose of this is to help
pay permit for Business owner who are interested in getting a Building Agreement or any kind of
Improvements.
Reike suggested that this need to be talked more about and should bring back more incentives
and ideas we can offer, to the businesses along CSAH 75.
Bioscience Zoning
Strack explains the plans for Bioscience zone. Four surrounding cities: St. Cloud, St. Joseph,
Bartell, and St. Augusta are planning on signing an agreement for Bioscience zone. This would
include free zone for bi-tech science.
Potential areas in St. Joseph are: Gill Farm, Puerginer, manufacture home park, southeast of
CSAH 75, Gohman, and all the industrial park. The total is 300 acres. It would nice to see
industrial park built to accommodate Bio-Tech/Bio-Science Park.
Reike stated, what are the risks of this? Strack believe the risk is getting denied. The application
due date is October 15, 2006.
Prospect List and Activity Report
Due to Bioscience Zone, this section will be included in the next October meeting.
Board Member Announcement
Rieke note the topic on this agenda. Strack told members of the board that the city had received
the proposals from two firms: Maxfield Research and McComb. One member of the contributing
fund will have to meet to discuss the best firm.
Adjournment
Motion by Jacobson, seconded by Heinen to adjourn. Motion carried 3:0. Meeting adjourned at
5:00 PM.
C" ;ia~L~