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HomeMy WebLinkAbout2007 [02] Feb 21CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes -Wednesday, February 21, 2007 Present: EDA Board Members Carolyn Yaggie -.Heinen, Ken Jacobson, and Dale Wick. Tardy: Tom Skahen (arrived at 3:14 p.m.) and Mayor Richard Carlbom (arrived at 3:30 p.m.). Also present: Cynthia Smith -Strack of Municipal Development Group. Vice Chairperson Jacobson called the February 21, 2007 meeting of the St. Joseph EDA to order at 3:09 p.m. Oath of Office -Dale Wick. Vice Chair Jacobson introduced the agenda item. Strack administered the oath of office to Mr. Wick. The EDA congratulated the new Board Member. Agenda. Vice Chairperson Jacobson introduced the agenda. Moved by Heinen seconded by Wick to approve the agenda as presented. Motion carried 3-0. Approval of Minutes. EDA Vice Chairperson Jacobson introduced the minutes from the January 17, 2007 meeting. Wick noted that while he was a present at the January meeting he was not officially a member of the EDA at that time and did not feel comfortable voting on the minutes. Action on the minutes was tabled by consensus until a quorum of EDA members present at the January meeting was assembled. EDA Accounts Payable. Jacobson introduced the topic. Strack noted accounts payable for the month included telephone and MDG invoices. Accounts payable for the month totaled $2,112.49. Motion by Heinen, second by Wick to approve the EDA accounts payable for the month of January 2007 in the amount of $2,112.49. Motion carried 3-0. Financial Report. Jacobson introduced the agenda item. Strack noted the January financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Motion by Wick second by Heinen to approve the December financial report as presented. Motion carried 3-0. Skahen arrived at 3:14 p.m. Fagade Architectural Grant Program Guidelines & Revolving Loan Fund Application. Vice Chairperson Jacobson introduced the topic. Strack referenced the information included in the EDA packet. Strack noted that in 2006 the EDA began discussing various alternative incentive programs which could further multiple goals of the EDA including, but not limited to: revitalization/renewal of existing business establishments, proactive outreach to the business community, specific incentive programs which benefit business owners contemplating less intensive projects and the desire for architectural designs sensitive to community aesthetics and compliant with existing ordinances. Strack stated that one potential incentive discussed at length included the establishment of a matching grant fund to assist with securing architectural services for redevelopment projects, EDA Minutes -February 21, 2007 especially those impact facades. Such a grant program could be used in conjunction with the Revolving Loan Fund to encourage the rehabilitation/renewal of existing structures within the business community. Strack noted sample program guidelines and a sample application had been developed by MDG in conjunction with the potential program. In addition, a potential funding source had been identified (i.e. transfer from EDA Revolving Loan Fund) for asmall-scale pilot program. Strack suggested the initial grant program could begin on a very small scale i.e. total pool available for grant $5,000 -maximum per project grant envisioned to be $1,000 -therefore, up to five projects within the first year. Strack noted sample program guidelines are predicated on the following basic program concepts: • Requires a match from the applicant. • Is limited to a maximum of $1,000 for project. • Is to be used to reimburse property owners for the cost of architectural services relating to fagade revitalization/enhancement and/or site improvements. • Requires project be completed within a short period of time (i.e. less than two years) or grant to be refunded. • EDA to review/approve requests on a first come, first served basis. Strack referenced the guidelines and application included in the packet Jacobson questioned the ability to use the grant program for 'site improvements'. Wick suggested an alternative may be to limit the scope to fagade improvements alone and/or to allow limited site improvements. Heinen suggested allowing the grant to assist with landscaping of the premises which could enhance site aesthetics. The EDA reached consensus to replace 'site' improvements with 'landscaping' improvements within the program guidelines. Jacobson inquired as to whether or not the fagade architectural design grant program would be available to businesses adjacent to CSAH 75 and/or owners of industrial uses. Strack noted as drafted the guidelines allowed all commercial lots to tap into the proposed resource but excluded industrial developments. Strack also noted the pilot program was proposed to be administered on a first come -first served basis. The program was designed to 'reimburse' expenses as opposed to providing a grant up-front. Carlbom arrived at the meeting. Wick inquired as to whether the City or the EDA would approve applications for the fagade architectural grant program. Strack stated the guidelines and application and program concept would need initial authorization from the City Council, but, if accepted by the Council, actual program administration is proposed for delegation to the EDA. Motion Heinen, Second Wick to recommend the City Council approve the concept, guidelines, and application materials for a proposed Fagade Architectural Grant Program for Commercial establishments in the City of St. Joseph and to authorize Strack to submit to City Council for consideration. Motion carried 5:0. Strack noted the proposed fagade architectural grant program could be augmented by accessing the EDA Local Revolving Loan Fund. Strack noted the EDA has reviewed revolving loan fund process guidelines and application materials previously and that revised program guidelines and an application were included in the EDA packet for review/discussion. Strack noted the EDA EDA Minutes -February 21, 2007 would need to recommend the City Council approve the loan fund guidelines and application as well as requests for assistance received in the future pursuant to the loan fund. Jacobson inquired as to whether or not a personal guarantee would be required. Strack noted the guidelines proposed included that requirement. Wick noted the section regarding loan fees on page two of the proposed guidelines included contradictory language. The EDA reached consensus in recommending a loan origination fee. Motion Skahen, Second Wick to recommend the City Council approve the revolving loan fund guidelines and application and to authorize Strack to submit to City Council for consideration. Motion approved 5-0. Approval of Minutes. Vice Chair Jacobson noted the presence of Chairperson Carlbom and transferred control of the meeting to Mayor Carlbom. Wick noted since the full Board was now present it may be desirable to approve the minutes from the January 17, 2007 meeting which were tabled by consensus earlier in the meeting. The Board agreed to review the minutes at this time. Motion Skahen, second Heinen to approve the minutes from the January 17, 2007 meeting. Motion carried 4:0:1 with Wick abstaining. Industrial Park Update. Carlbom introduced the agenda item. Strack Hated St. Joseph has a shortage of `shovel ready' industrial lots with full urban services and that, as a result, the City/EDA/MDG have been working encourage the development of additional shovel ready industrial lots in the southernmost portion of the 320-acre farm. Strack stated that Redwood Real Estate a land acquisition and development firm from Maple Grove has closed on a portion of the 320 acres and has control of the remaining acreage. The approximately 32 acres that has sold abuts the St. Joseph Industrial Park and is proposed for future industrial use. Redwood Real Estate has completed a draft Environmental Assessment Worksheet (EAW) for the potential 32-acre industrial area. The EAW includes a conceptual map of the potential business park. Strack noted a copy of the concept plan is included in the EDA packet and that concept plan has also been disclosed to the City Council and the Planning Commission. The City Administrator has requested the EDA review and comment on the concept plan for the industrial park. One item to consider is a potential for mixed-use commercial/industrial (i.e. business park) at the subject location. A final item to consider is level of involvement by the EDA in the development of industrial lots within the proposed park. The Board reviewed the proposed concept plan and business park concept. Several Board Members expressed concern regarding lot sizes being too small. Carlbom inquired as to what typical industrial leads were looking for in terms of lot size. Strack noted that active prospects were seeking in excess of four acres of property presumably to accommodate future expansion but historically prospects had indicated a desire to seek relief from the covenant-required three- acre lot size the Buettner Business Park. The minimum lot size included in the zoning ordinance for light industrial use was one acre. Wick asked what size lots were selling in the township industrial park. Jacobson noted he thought the lots varied from about an acre to over three acres. Pursuant to additional discussion, the EDA reached consensus in recommending the developer consider combining the smallest lots to create a variety of lot sizes. EDA Minutes -February 21, 2007 The EDA then discussed the concept of mixed commercial and industrial development within the park. Wick noted he was skeptical as to whether or not commercial type development would occur near the intersection of the northern arterial and projection of 20th Avenue north. Carlbom agreed. Strack noted the broker representing the property had mentioned a fitness facility for the northern portion of the site. The EDA concluded that market forces and the pace of roadway development would likely drive the type of businesses locating in the proposed park. Strack requested input from the EDA regarding participation in industrial lot development through the issuance of a TIF revenue bond to purchase acreage and install public utilities. Strack noted the concept would likely not be viable unless at lease one project went forward immediately in conjunction with land purchase and utility installation. The EDA/City would incur risk in conjunction with the issuance of a TIF bond if the pace of development did not remain brisk. Strack noted the advantage would be the ability to reduce land prices to make them more competitive within the region. Strack noted the site was currently listed on the St. Cloud Area Economic Development Partnership's website at $70,000/acre without improvements. Strack projected land prices to top $2.00 to $2.50 per square foot if improvements were made by the developer. The anticipated pricing when compared to existing industrial lots available within the St. Cloud Area was higher than average, especially when JOBZ availability in St. Cloud and Bartell was factored into the equation. The land price will have a significant impact on the pace of future development which could be compounded by the existence of available industrial lots in the nearby township industrial park. Strack stated the City Administrator had noted the project could fit into the 2007 bonding program. Carlbom asked if the EDA would look to make a profit or to just break even if it pursued purchase of the property. Strack noted the EDA would look to sell property at the lowest possible price so as to make development attractive. Heinen inquired as to how the bond payments would be made. Strack noted the City would capture tax increment to make bond payments and therefore, the pace of development would need to be brisk. Wick asked if the property owners would consider sale of existing land and if so at what price. Strack noted the concept of active participation by the EDA was first occurring at this time and unless the EDA and Council supported the concept additional time/resources spent on the project was being curtailed. Therefore, she did not specifically inquire as to potential for sale of property to the City/EDA but did note she had a conversation with the property broker who asked if the City would buy the property. The EDA discussed the type of leads currently active and the volume of land those prospects were seeking. In addition, the EDA discussed the potential project parameters in terms of volume of acreage to consider. The EDA reached consensus in noting the next step would be to discuss the potential for such participation with the City Council at the upcoming staff/Council/consultant retreat. Jacobson departed from the meeting due to a previous appointment. CSAH 75 Renewal Corridor. Carlbom introduced the agenda item. Strack noted that the EDA discussed feedback from property owners in a selected area adjacent to CSAH 75 at the January meeting and then directed Strack to consult with rental property owners to request input. Strack noted input included affirmation of the unwillingness of some property owners to consider sale at this time and concern regarding market saturation from proposed commercial developments such as Mill Stream Shops and a new multiple tenant facility near CSAH 75 and 8th Avenue. In addition, some feedback indicated the City would likely need to be very active in reducing barriers to redevelopment. EDA Minutes -February 21, 2007 Carlbom noted Jacobson should be present for the continued discussion as his insight would be especially pertinent. Carlbom requested further discussion be continued to the next meeting, the Board agreed. Information contained at the close of the packet relating to the 45th Annual SCSU Economic Education Winter Institute and the concept for a multiple tenant retail facility adjacent to CSAH 75 and 8th Avenue were noted. Board Member Announcements. Mayor Carlbom noted he attended the St. Cloud Area Economic Development Partnership meeting earlier in the day. Carlbom stated the meeting included a presentation by the SCSU Economic Development Center and information on the forthcoming Farm Show to be held at the St. Cloud Civic Center. Skahen noted potential issue affecting his property. Adjournment. Meeting adjourned by consensus at 4:30 PM Z EDA Minutes -February 21, 2007