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HomeMy WebLinkAbout2006 [10] Oct 18CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes -Wednesday, October 18, 2006 Present: EDA Board Members Ross Rieke, Richard Carlbom, Carolyn Yaggie -Heinen, Ken Jacobson, and Tom Skahen. Absent: None. Also present: Mai Yang, SCSU Intern and Cynthia Smith -Strack of Municipal Development Group. Chair person Rieke called the October 18, 2006 meeting of the St. Joseph EDA to order at 3:OOPM. Agenda. Chairperson Rieke introduced the agenda. Strack requested the addition of a discussion regarding a joint meeting with the City Council and Planning Commission scheduled for 4 p.m. Moved by Skahen seconded by Jacobson to approve the agenda, with the addition of item 5(a)1 regarding the joint meeting. Motion carried 5-0. Approval of Minutes. EDA Chairperson Rieke noted the minutes from the September 20, 2006 meeting were included in the packet. Motion by Jacobson, seconded by Heinen to approve the September 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 an included invoice for contracted services in the amount of $2,274.35. The total hours provided by MDG, Inc. through September 30th equaled 306.75, on target for the contracted 420 hours of services for the year. Strack added that mileage reimbursement in the month of September is higher than usual due to bioscience zone application and downtown revitalization meetings. Motion by Jacobson, second by Heinen to approve the EDA accounts payable for the month of September 2006 in the amount of $2,274.35. Motion carried 5-0. Financial Report. Rieke introduced the agenda item. Strack noted the September financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Skahen, second by Heinen to approve the September financial reports. Motion Carried 5-0. Joint Meeting with the City Council, Planning Commission and the EDA. Chairperson Rieke introduced the topic and apologized for potential confusion over the joint EDA, Planning Commission and City Council meeting scheduled for 4 p.m. The purpose of the meeting is to discuss CSAH 75 urban renewal with the Planning Commission and City Council. The EDA discussed the approach the Board should take for the meeting with the Planning Commission and City Council. The Board reached consensus that EDA President Rieke will lead EDA Minutes -October 18, 2006 a discussion regarding CSAH 75 renewal and potentially mention some of the new incentives the EDA is reviewing. Development Incentives Program. Rieke introduced the topic on the agenda. Strack stated that at the September EDA meeting Board Members discussed various potential incentive programs, including but not limited to, tax increment financing, tax abatement, revolving loan fund, Minnesota Community Capital Foundation, Minnesota Investment Fund and Industrial Development Bonds. Then Board Members discussed alternative incentives relating to architectural services and building permit issuance. Staff was directed to bring additional information to the October meeting as to a grant program for architectural design services and building permit funding participation for certain commercial projects. Strack noted that potential renovation/rehabilitation grant and revised revolving loan fund guidelines were included in the packet. Strack noted the current revolving loan fund balance is approximately $20,000.00. The revised grant guidelines propose a minimum loan amount of $2,500.00 and maximum of $20,000.00 or 90% of RLF balance. Strack stated the RLF balance should increase to approximately $40,000.00 by the close of the year. The EDA can consider issuance of low interest loans through the RLF but should be mindful the fund must be recapitalized prior to issuance. The Board discussed the concept of a renovation/rehabilitation grant program. The theoretical concept included a small grant (i.e. $1,000, match required) to small business owners in St. Joseph who were contemplating rehabilitation and/or renovation of existing commercial structures. The proceeds of the grant could be used to conduct rehabilitation or renovation projects or could be used to secure the services of an architect in conjunction with a renovation or rehabilitation project. Strack noted a similar program was currently in effect in a couple of other client communities, but that the EDA would need to capitalize the program and seek approval for the program from the City Council. Strack suggested the EDA begin with a few pilot projects in 2007 to determine the effectiveness of the program. Skahen noted that business owners may or may not be enticed by the $1,000.00 grant depending on the scope of the project. Jacobson stated the money could potentially make a difference to business owners contemplating less intensive projects and achieve some of the goals for building design standards included in the zoning ordinance. The EDA suggested the proposed rehabilitation/renovation program guidelines be revised to not include the phrase "increase to the local tax base" as that the phrase could be interpreted negatively. The Board suggested the text be revised. Carlbom inquired as to whether or not there was confusion among business owners that rehabilitation/renovation can lead to increased market values and in turn to an increase in taxes payable. The EDA discussed the need to communicate effectively with business owners regarding potential implications of rehabilitation/renovation. Board members favored the idea of placing a tax calculator on the City website for business owners contemplating redevelopment or expansion projects. The Board discussed capitalization of the grant program. Strack noted the EDA had included approximately $10,000 in the 2007 budget for "the pursuit of a redevelopment program and potential land acquisition". The Board did not favor the use of the CIP fund for the grant program. Strack noted the proposed operating budget for 2007 included an allocation for engineering and legal services which could potentially be transferred to a grant program and used to facilitate a few pilot projects. The EDA noted the 2007 budget would be finalized by mid-December. Additional discussion regarding grant program capitalization could occur at that time. The EDA noted the next step is taking the concept of the grant program to the City Council for approval. EDA Minutes -October 18, 2006 Strack inquired as to whether or not Board Members had additional input as to incentive programs. Heinen suggested the EDA partner with Chamber of Commerce and the Newsleader to highlight businesses within the Newsleader on a regular basis. The Board discussed a building permit fee 'buy down' program. The 'buy down' program could be another potential eligible use of the previously discussed grant program. The concept was favorably received, but the Board noted any grant program still needed to be funded. CSAH 75 Renewal Project Update. Rieke introduce the topic on the agenda. Strack stated that at previous meetings the EDA had discussed an urban renewal corridor adjacent to CSAH 75 and expressed interested in removing impediments to redevelopment within the corridor. Strack noted that at the previous meeting the EDA requested Yang attempt to conduct Business Retention and Expansion (BRE) program visits with the funeral home and Complete Electronics. Yang stated she was not able to establish a BRE visit with the Daniel Funeral Home but was able to visit Complete Electronic. She noted the owner of Complete Electronics stated he would like to expand/enhance the current facility or relocate. Strack noted she had presented the concept of actively removing impediments to redevelopment at the southeast quadrant of the intersection of CSAH 75 and College Avenue at a staff meeting the previous week. Staff reacted favorably to the concept. The Board noted the next step for the renewal concept would be the joint meeting of the EDA, Planning Commission and City Council at 4 p.m. Business Retention and Expansion Program Update. Rieke introduce the topic. Yang note the Business Retention and Expansion program started in earnest over the past month. Yang has completed 30 visitations with firms/ business owners and will continue to the program until the end of November. Yang added that business owners showed interest in having an EDA newsletter or some way of informing them about current events and future planning. Bioscience Zone Acreage Allocation Application. Rieke noted the topic on the agenda and suggested the topic to be discussed at the November 15, 2006 meeting. Adjourment. Motion by Jacobson, second by Heinen to adjourn. Motion carried 5-0. Meeting adjourned at 4:05PM EDA Minutes -October 18, 2006