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HomeMy WebLinkAbout2007 [01] Jan 17CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes -Wednesday, January 17, 2007 Present: EDA Board Members Richard Carlbom, Carolyn Yaggie -Heinen, Ken Jacobson, and Tom Skahen. Absent: None. Also present: Council Member Dale Wick (potential EDA appointee), City Administrator Judy Weyrens, Collegeville Communities Representatives Jon Petters, Jim Digeovanni and Nathan Woodworth, and Cynthia Smith -Strack of Municipal Development Group. Vice Chairperson Carlbom called the January 17, 2007 meeting of the St. Joseph EDA to order at 3:05PM. Election of Officers - 2007. Vice Chairperson Carlbom introduced the topic noting the EDA Bylaws specified the election of officers annually at the first meeting of the year. Carlbom stated the officers for 2006 were as follows: Chair -Ross Carlbom, Vice Chair -Carlbom, Treasurer -Skahen and Secretary - Jacobson. Carlbom asked for nominations for the four offices. Nominations/seconds were Chair -Carlbom, Vice Chair -Jacobson, Treasurer -Heinen and Secretary -Skahen. Carlbom asked twice for other nominations. No additional nominations were made. Motion Jacobson, Second Heinen to approve nominations as listed. Motion carried 4-0. Agenda. Chairperson Carlbom introduced the agenda. Moved by Skahen seconded by Jacobson to amend agenda moving Business Item 6(a) up on the agenda to directly follow approval of the agenda. Motion carried 4-0. Final TIF Application -Collegeville Communities. Chairperson Carlbom introduced the topic, representatives from Collegeville Communities and requested Strack provide an overview of the request. Strack noted Collegeville Communities has submitted a final application and fee requesting Tax Increment Financing assistance for the construction of a 21,518 square foot mixed-use condominium facility. The proposed project site includes the former Krebsbach Chevrolet property and the current laundromat/tanning site. TIF assistance is requested in order to help the project move forward. A copy of the TIF Application was distributed to members of the EDA. Strack noted the project meets the objectives of: (a) removing blight and/or encouraging redevelopment in the commercial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas, and, (b) providing for a balanced and sustainable housing stock to meet diverse needs both today and in the future. Strack stated the final application includes a sourcesluses statement and pro-forma analysis demonstrating the project is not financially feasible without TIF assistance. The project is consistent with the Comprehensive Plan and zoned appropriately for the intended use. The applicant has provided documentation certifying ownership/control of the subject property. The EDA/City's TIF policy includes several 'desired qualifications'. Strack reported analysis conducted pursuant to the information contained in the application and the 'desired qualifications' revealed: EDA Minutes -January 17, 2007 1. Current taxes generated by the proposed site total $3,403, taxes generated post- development are estimated by the Stearns County Assessor's Office (Senior Appraiser) to total approximately $75,459. The change in taxes equates to a 10:1 increase. 2. Collegeville Communities is an existing company with similar projects established in Northfield and Winona. The pro-forma analysis indicates two commercial units and five of the residential lofts are pre-sold. 3. The request is for pay-as-you go assistance, if taxes are not generated the increment will not be achieved. 4. The proposed mixed commercial office/retail and residential loft units will not place extraordinary demands on City services. Collegeville Communities proposes to use the TIF agreement to secure a note from a private lender. The lender will likely not issue debt based on the total amount of TIF identified in the agreement but rather a percentage thereof. A minimum assessed market value agreement between the applicant and Stearns County will likely be needed. The EDA discussed the request. Carlbom asked representatives from Collegeville Communities to describe the proposed phasing for the project. Representatives noted development would start at the intersection of College/Minnesota and proceed to the east. Jacobson inquired as to was the target market for the commercial spaces and the lofts. Collegeville Communities representatives noted the commercial area units would be marketed to specialty retailers, professional offices and restaurant establishments. The lofts were being marketed to professors, commuters, adults and retirees. Strack clarified the units must remain taxable property following sale or TIF would not be available to assist with the project. Representatives from Collegeville Communities noted they would require condominium units remain taxable property as a condition of sale of the property. Skahen asked what amount of TIF was potentially available to the project. Strack noted that information from the County Assessor estimated $1.35 million could be available over a 25 year term but that the amount considered should be representative of the gap in financing as demonstrated by the pro forma but-for analysis. Woodworth noted the net present value of pay- as-you-go TIF was thought to be approximately $467,000. Heinen inquired as to what project costs the increment could offset. Strack noted eligible uses for increment included site acquisition, site preparation and installation of improvements. Motion Skahen, second Jacobson to recommend the City Council approve the final TIF application and authorize drafting of TIF plan and TIF agreement for the Mill Stream Shops development providing.' 1. Total benefit not to exceed a net present value of $467, 000. 2. Term to expire at time of maximum net present value attained or 25 years whichever is less. 3. TIF benefit on spay-as-you-go basis (TIF bonds will not be issued). 4. All properties subject to the scope of the TIF Plan will retain status as taxable property. Motion approved 4:0. EDA Minutes -January 17, 2007 Approval of Minutes. EDA Chairperson Carlbom noted the minutes from the December 20, 2006 meeting were included in the packet. Motion by Skahen, seconded by Jacobson to approve the December 20, 2006 regular EDA minutes as presented. Motion carried 4-0. EDA Accounts Payable. Carlbom introduced the topic. Strack noted accounts payable for the month included TIF disbursements to Borgert Products/SKN and MinnWest Bank, Commissioner per diem for 2006, payment to SEH for creation of maps, purchase of greeting cards for business owners, postage, telephone and MDG invoice. Accounts payable for the month totaled $39,398.67. Motion by Jacobson, second by Heinen to approve the EDA accounts payable for the month of December 2006 in the amount of $39,398.67. Motion carried 4-0. Financial Report. Carlbom introduced the agenda item. Strack noted the December financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Skahen second by Jacobson to approve the December financial report as presented. Motion carried 4-0. CSAH 75 Renewal Project. Chairperson Carlbom introduced the topic. Strack noted the EDA had directed her to contact the owners of homesteaded property in the area adjacent to College Avenue and Ash Street. Strack noted she had talked with a few property owners but many had been unavailable for contact. Of those contacted most indicated they had no interest in sale of property and most calls were met with skepticism and distrust. Jacobson noted that opinions of property owners will likely change greatly over any one period of time as individual circumstances change. Carlbom noted he was to develop an article for the Newsleader and could submit an article requesting input from landowners adjacent to CSAH 75 regarding interest in partnering for redevelopment. Board members also directed Strack to contact the owners of rental property in the renewal corridor regarding their thoughts on redevelopment potential. Business Retention and Expansion Update. Carlbom noted the topic on the agenda. The Board reviewed a mailing prepared by Strack which included BRE survey results. Heinen suggested the words "Economic Development Authority" be used in the flyer rather than the EDA acronym. In addition, Jacobson requested extra copies of the survey be made available at the next Chamber of Commerce meeting. Board members authorized/directed Strack to mail the flyer to members of the business community. - Board Member Announcements. Carlbom noted he was going to appoint Council Member Wick to the EDA replacing former Council Member Rieke. The appointment was to be approved by the City Council at the next meeting. EDA Minutes -January 17, 2007 Skahen noted he had contacted St. Joseph Public Works Superintendent Dick 7aufen regarding a tour of the new water treatment facility. Superintendent Taufen will provide the EDA a guided tour of the facility in April following final completion. Skahen also inquired as to the status of the former feed mill. Strack noted the Building Official's office was following up on the status of activity at the facility. Strack further noted the Building Official had recently discussed site plan development with the property owner's architect. Adjourment. Meeting adjourned by consensus at 4:57P ~L2~"" " CC_ ~L~c;e~j~ ~4L~~- EDA Minutes -January 17, 2007