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HomeMy WebLinkAbout2006 [12] Dec 20CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes -Wednesday, November 15, 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. Chairperson Rieke called the December 20, 2006 meeting of the St. Joseph EDA to order at 3:05PM. Agenda. Chairperson Rieke introduced the agenda. Moved by Carlbom 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 15, 2006 meeting were included in the packet. Motion by Skahen, seconded by Heinen to approve the November 15, 2006 regular EDA minutes with the correction of the reference to "Skahen" on page three which was presented as "Shaken". Motion carried 4-0 with Rieke abstaining. EDA Accounts Payable. Rieke introduced the topic. Strack noted accounts payable for the month an included invoice for contracted services in the amount of $2,356.23. The total hours provided by MDG, Inc. through November 30th equaled 388.5, on target for the contracted 420 hours of services for the year. Strack added that mileage reimbursement in the month of November is higher than usual due to downtown revitalization meetings. Motion by Carlbom, second by Jacobson to approve the EDA accounts payable for the month of November 2006 in the amount of $2,356.23. Motion carried 5-0. Financial Report. Rieke introduced the agenda item. Strack noted the November financial reports were contained at the close of the packet. Reports presented included: revenue, expense, check register and fund balance. Jacobson inquired as to whether or not the interest earned on the revolving loan fund balance was retained by the EDA. Strack noted accrued interest was retained by the EDA.. Strack also alluded to the fund balance a portion of which may be carried over annually; the fund balance is estimated at approximately $20,000. Jacobson inquired as to how the amount applicable to phone/telcom service was calculated. Strack noted the amount attributed to phone service was proportionate to the use of the system. Motion by Carlbom second by Heinen to approve the November financial report as presented. Motion carried 5-0. CSAH 75 Renewal Project. Chairperson Rieke introduced the topic. Strack noted the November EDA meeting Board Members discussed feedback from a joint meeting with the Planning Commission and the City Council relating to the CSAH 75 Renewal Project. The EDA then directed MDG to prepare a list of property owners and contact information for properties within the potential renewal area. EDA Minutes -December 20, 2006 EDA Members noted ten of the property owners in the identified potential CSAH 75 renewal project area were homesteaded, an additional four were taxed as commercial establishments and the final four carried a tax classification of non-homestead residential. Carlbom noted the College of St. Benedict has announced a plan to require students reside on campus for all four years of college. The plan is to be rolled out over the next several years with affects impacting the student rental market beginning in 2010. The student rental market vacancies will greatly impact property ownership/use within the City and especially within the CSAH 75 renewal project area. Strack noted the City/EDA could consider application to DEED's Small Cities Development Program for commercial/residential rehabilitation in connection with implementation of the new CSB residency requirement. In addition, the SCDP could be leveraged with redevelopment TIF to attempt to convert student rentals into business uses within the potential renewal project area. EDA Members identified the next step as reaching out to owners of homesteaded property within the potential project area. The purpose of the outreach is gather information regarding the properties, including, listening to homeowners' future plans for their properties and, if applicable, to let them know the EDA would like to help them realize those plans. Strack is to visit with homeowners within the subject area. Business Retention and Expansion Update. Rieke noted the topic on the agenda. Yang presented a final report on the progress the Business Retention and Expansion Program created/implemented as part of her internship. Ms. Yang noted: • She visited with 31 business owners • 18 of the 31 businesses started up in St. Joseph • Of those interviewed and/or responding to the BRE survey: nine were service-oriented facilities; four were restaurant establishments and four were wholesale operations. • Only about half of the responding businesses offered benefits such as vacation, 401 K plan, health insurance and the like. • Respondents indicated they would like additional information regarding business management and incentives offered by the EDA along with e-business, marketing and legislative issues. • The majority of those responding (82%) noted they have not used local, state or other incentives. • The majority of those responding (73%) noted they would like to access local, state or other incentives. • 73% of businesses noted sales have increased in the past three years; 23% noted sales have stayed approximately the same. • 87% of those responding indicate they expect their businesses to grow within the next three years. • 70% of those businesses responding noted they have considered expansion within St. Joseph. When asked what type of expansion those business owners had considered: 23% noted they have considered adding employees, 20% noted the expansion was adding new equipment, 14% noted the expansion was training existing/new employees and 11% noted they have considered building/facility expansion. • Of those participating in the BRE program, three establishments noted they were considering moving and one establishment noted it was considering closing. • Most respondents 73% noted they were not considering expansion/building additions at the present time, six respondents noted they were considering expansion. EDA Minutes -December 20, 2006 When asked about deterrents to expansion respondents noted: increased property taxes were deterring expansion along with a feeling the costs of expansion outweigh the potential benefits and a feeling the current business size was adequate. When asked to rate the importance of the appearance of their building those responding replied: 27% 'very important'; 36% 'important' and 36% 'not very important'. Those completing the BRE survey were asked to comment on the "business atmosphere" within St. Joseph. The term was not defined within the survey. No respondents rated the 'business atmosphere' as excellent or poor, 100% of those responding noted the 'business atmosphere' in St. Joseph was average. EDA members discussed whether or not the survey was confidential and how the potential perception of confidentiality could impact the next step within the BRE program. Skahen stated that those responding on the condition of confidentiality may not want afollow-up call from EDA staff regarding survey results. Heinen noted follow up with those stating they were considering moving and/or closing was imperative. The EDA following additional discussion reached consensus that follow-up was necessary. In the near-term Strack was directed to mail out thank you cards to those who received surveys and/or those interviewed by Ms. Yang. In addition Strack is to prepare a mailing including survey results for the EDA to review/approve at the next meeting. The mailing should be general enough to retain the confidentiality of those participating in the BRE program but be specific enough to be useful to business owners. In addition to survey results the mailing is to include planned activities resulting from the survey and an offer to visit further with business owners. The formal letter is to be placed on official City letterhead. In addition, Carlbom noted he was working with Janelle Von Pinnion with The Newsleader regarding a reoccurring EDA column. The EDA column would attempt to further efforts at business outreach. EDA Annual Report to City Council. Rieke noted the topic on the agenda. Strack stated the EDA is required to submit an annual report of activities to the City Council on an annual basis. The report must highlight EDA activities over the previous year and plans/goals for the next year. Strack summarized the accomplishments for 2006 including: Itemization of core initiatives and strategic directions followed throughout the year • Convening of 12 EDA meetings • Downtown revitalization project: revitalization plan created, project initiated, work groups formed, 19 meetings held • 2006 commercial building permit summary: down from previous year. Contributing factors include: uncertainty surrounding future transportation routes, lack of industrial lots, competition with available industrial properties within the township and the fact several downtown business owners were waiting for direction from the Urban Environs Work Group regarding design guidelines and potentially, architectural renderings • CSAH 75 Renewal Project • Preparation and maintenance of information for distribution to development prospects • Maintenance of inventory of available commercial and industrial acreage, buildings and lease space Participation in Southern Corridor (Field Street) TAC, the Northern Corridor task force and the stakeholders group working on the St. Joseph Transportation Study • Promotion/offering of financial incentives Zoning ordinance update review/comment Bioscience zone acreage allocation application EDA Minutes -December 20, 2006 • Business Development Public Infrastructure grant program application • Establishment of the business retention/expansion program • Consideration of the establishment of a new grant program (matching, not to exceed $1,000) designed to assist in securing architectural services with regard to new business construction, expansion and/or rehabilitation, and • 2006 work plan analysis In addition the EDA discussed goals for 2007. Due to a prior commitment, Board Member Jacobson exited the EDA meeting during the goal-setting discussion. Goals established include: 1. CSAH 75 Renewal Project advancement. 2. Downtown Revitalization program advancement. 3. Updating of Economic Development Plan included in the 2002 City of St. Joseph Comprehensive Plan. 4. Establishment/implementation of communication plan to proactively reach out to businesses on a variety of issues. 5. Approval/implementation of architectural services grant programs beginning with five property owners within the downtown who have expressed a desire to secure architectural renderings. 6. Facilitation of communication between the College of St. Benedict and the business community to exchange information regarding the impact CSB has on business owners, in terms of both increasing clients and potential competition between services provided. Motion by Carlbom, second by Heinen to submit the annual report to the City Council. Motion carried 4-0. 2006 Reimbursement Forms and 2007 EDA Calendar Rieke noted the topic on the agenda. Reimbursement forms and 2007 calendars were distributed. Board Member Announcements. None. Adjourment. Motion by Skahen, second b Heinen t adjourn. Motion carried 4-0. Meeting adjourned at 4:57PM C~~~« ~c~ EDA Minutes -December 20, 2006