HomeMy WebLinkAbout2007 [03] Mar 21CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AURTHORITY
Meeting Minutes -Wednesday, March 21, 2007
Present: EDA Board Members Richard Carlbom, Ken Jacobson, Tom Skahen, and Dale Wick.
Absent: Carolyn Yaggie-Heinen.
Also present: Cynthia Smith -Strack of Municipal Development Group.
Chairperson Carlbom called the March 21, 2007 meeting of the St. Joseph EDA to order at 3:01
p. m.
Agenda.
Chairperson Carlbom introduced the agenda. Moved by Wick seconded by Skahen to approve
the agenda as presented. Motion carried 4-0.
Approval of Minutes.
EDA Chairperson Carlbom introduced the minutes from the February 21, 2007 meeting. Minutes
approved without objection.
EDA Accounts Payable.
Carlbom introduced the topic. Carlbom inquired as to whether the MDG invoice totaled $2,264.99
or $2,469.17. Strack noted the correct invoice amount was $2,469.17 and that accounts payable
for the month totaled $2,508.23.
Motion by Skahen, second by Wick to approve the EDA accounts payable for the month of
February 2007 in the amount of $2, 508.23. Motion carried 4-0.
Financial Report.
Carlbom introduced the agenda item. Strack noted the February financial reports were contained
in the packet. Reports presented included: revenue, expense, check register and fund balance.
Motion by Wick second by Jacobson to approve the February financial report as presented.
Motion carried 4-0.
Industrial Park Update.
Carlbom introduced the agenda item. Strack noted that at the previous meeting the Board
reviewed a concept plan for Parkway Business Center, a proposed business
(commercial/industrial) park at the former Feld farm site. The concept illustrates the subdivision of
approximately 55 acres into 23 commercial and industrial lots. In addition the EDA discussed the
concept of participating in industrial lot development through the issuance of a TIF revenue bond
to purchase acreage and install public utilities. The EDA reached consensus at the meeting
noting the next step would be to discuss the potential for such participation with the City Council
at the upcoming staff/Council/consultant retreat.
Strack noted that the retreat was held on Wednesday, March 14`h. Those attending the
staff/Council/consultant retreat recommended the EDA perform additional research to determine
what the best long-term approach toward potential participation in industrial development may be.
The EDA discussed the timing and pace of development in areas previously identified for future
industrial development including the proposed Parkway Business Center (former Feld farm site)
and acreage near Interstate 94. Wick noted the construction of re-routed CSAH 2 in 2009 could
reasonably be expected to impact the pace of development adjacent to Interstate 94. The Board
agreed and discussed the potential of actively preparing the area for development prior to
EDA Minutes -March 21, 2007
roadway construction. The Board also discussed participation in the Parkway Business Center
development in the near-term with promotion of development adjacent to Interstate 94 as a
longer-term goal. The Board ultimately reached consensus in noting additional information was
required. The Board requested Strack: obtain potential cost estimates/price points for the
Parkway Business Center lots, obtain additional information regarding the potential for tax
increment financing being used for improvements, and obtain input from existing industrial
prospects regarding development schedules. Strack will bring additional information to the April
meeting.
Economic Development Plan (Comprehensive Plan) Update:
Carlbom introduced the agenda item. Strack noted that the EDA had established updating the
economic development plan contained in the St. Joseph Comprehensive Plan as a goal for 2007.
The plan had last been updated in 2002.
Strack referenced the draft plan contained in the EDA packet noting:
^ Economic Development is important because the City can help maintain a strong
economy by promoting and retaining jobs which provide a good standard of Iiving.Also,
increased personal income and wealth expand the tax base which can help the City
provide the services residents want. Finally, a balanced, healthy economy is essential for
the community's well-being.
^ Understanding the local economy is not as easy as looking at a single picture but more
like a montage of pictures that frames our interpretation of the whole.
^ Population estimates: St. Joseph - 5,700; five-mile trade area - 12,000; and St. Cloud
MSA-173,000.
^ Traffic counts: Interstate 94 - 25,000 average daily trips; Hwy. 75 - 22,500 average daily
trips.
^ Personal Income Growth: Regional higher than state average much higher than national
average
^ Wage Growth - St. Joseph: Historical change much lower in St. Joseph than County &
MSA
^ Job Growth - St. Joseph: Historical change higher in St. Joseph than County &MSA
^ Job Growth -Regional: Historical change higher in County &MSA than nation, par with
State
^ St. Joseph Job Indices:
Historic decline in # of establishments in following sectors: wholesale trade,
professional business services and health care/social assistance
Historic increase in # of establishments in following sectors: leisure/hospitality,
construction, manufacturing and professional/technical services
Historic decline in # of jobs in following sectors: retail trade and health care/social
assistance
• Historic increase in # of jobs in following sectors: transportation/warehousing,
professional technical services, education and manufacturing
EDA Minutes -March 21, 2007
^ Projected High Growth Industries (DEED):
Computer and math-related fields including computer support specialists,
computer software engineers, and systems analysts
Community and social services fields including social workers and social/human
services assistants
Healthcare support fields including home health aides, nursing aides and
attendants, medical assistants, and medical transcriptionists
^ Commute Shed (where people who live in St. Joseph work): A greater percentage of
those living within one mile of the center of the City of St. Joseph (compared to those
living within five and ten miles of the City) work within the following sectors: construction,
transportation/warehousing and education. Conversely a lower percentage work within
the following sectors: wholesale trade, retail trade, healthcare/social services and
accommodations/food service.
Labor Shed (where people who work in St. Joseph live): A greater percentage of those
working within a mile of the center of St. Joseph (compared to those working within five
and ten miles of the City) work within the following sectors: construction, wholesale trade,
transportation & warehousing and accommodations/food service. Conversely a lower
percentage work within the following sectors: manufacturing, retail trade,
finance/insurance, professional/scientific/technical services, administration, educational
services and healthcare/social assistance.
Hiring: Per DEED in Central Minnesota the following jobs have excess demand at this
time: advertising, marketing, PR, and sales managers; operations specialists managers;
art and design workers; supervisors, building, grounds cleaning and maintenance
workers; scheduling, dispatching and distributing workers; construction trade workers;
electrical and electronic equipment mechanics, installers and repairers; assemblers and
fabricators; and, material moving workers. Conversely, the following sectors have excess
job supply retail trade and healthcare/support services.
^ Unemployment History: Unemployment rate in the St. Cloud MSA has typically been
equal to or greater than the state average but consistently below the average, population
growth quicker than job growth.
^ Market Value - St. Joseph: Portion of tax base attributed to commercial/industrial
establishments greater in St. Joseph than in St. Augusta, Sartell and Sauk Rapids but
less than Waite Park.
Population/Employment Ratio Analysis: (expressed as how many people one worker in
the selected industry serves)
• Growth Opportunities: retail trade; wholesale trade; manufacturing; professional
business services; and, education/health services.
• Excess Supply: accommodations/food service; construction; trade, transportation
& utilities; and, leisure/hospitality.
• Local economy highly dependent upon the following sectors: food
services/accommodations, trade/transportation/utilities and leisure and hospitality
businesses.
Sales Tax Analysis: (county level is smallest data increment available)
• Annual per capita retail sales: $11,722 per person
• Actual sales exceed potential dales: Stearns County has a retail sales surplus
(pull factor) valued at $234 million annually.
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• Conclusions: people are coming to Stearns County either tourists or visitors from
other counties. Adjacent counties do not pose direct competition to businesses in
Stearns County.
^ Building Costs - in general: Construction costs in Minnesota in 2006 were two (2) percent
above the national average, constructions costs in the St. Cloud MSA were three (3)
percent above the national average and construction costs in the Minneapolis/St. Paul
MSA were 14.5% above the national average.
^ Building Costs -factors: Building quality; building shape/outline; building area (i.e. larger
buildings cost less per square foot than smaller buildings); differences in typical wall
heights; location of building (redevelopment vs. new development); and, common
ownership (common walls, ownership on first floor vs. second story affect cost).
Strengths:
• Population growth
Location -transportation corridors
• Growth in personal income
• Job growth
• Construction, manufacturing, leisure/hospitality, professional/technical services,
education & transportation/warehousing sectors.
• Jobs in demand: computer & math, community & social services and healthcare
support fields.
• Commercial/industrial tax base is growing
Challenges:
• Historical wage growth locally slower than region
• Decline in number of wholesale trade, professional business services and health
care/social assistance establishments
Decline in number ofjobs in retail trade and health care/social assistance
• DEED reports difficult market for those seeking jobs in advertising, marketing,
PR, and sales management; operations specialist; art and design; building,
grounds cleaning and maintenance; scheduling, dispatching and distribution;
construction; installation/repair; assembly and fabrication
Local economy highly dependent upon the following sectors: food
services/accommodations, trade/transportation/utilities and leisure and hospitality
businesses
Potential excess supply of accommodations/food service; construction; trade,
transportation & utilities; and, leisure/hospitality establishments in St. Joseph
^ Opportunities:
Potential for expansion of retail and healthcare services establishments
• Excess demand locally for retail trade; wholesale trade; professional business
services; and, education/health services
Population within trade area over 12,000
^ Goals:
Downtown Revitalization
Highway Commercial Renewal
Competitively Priced Industrial Lots
Work Plan:
• Promote commercial and industrial developments that maximize the return on
City investments in public facilities and services, expand the tax base, provide
quality employment opportunities and complement existing services.
EDA Minutes -March 21, 2007
• Retain existing commercial/industrial uses and encourage new
commercial/industrial development to locate in existing commercial/industrial
parks and commercial/industrial zoned areas.
• Proactively and consistently promote downtown revitalization activities.
• Promote efforts to achieve commercial renewal/redevelopment in previously
developed areas within the highway commercial district.
• Provide appropriate, professional information to development leads in a timely
fashion.
• Administer financial incentive programs offered by the City/EDA.
• Promote the exchange of information between the business community and the
City of St. Joseph.
• Other ideas:
• Market research study -promote findings, actively distribute to retailers.
• Recruit healthcare facility expansion and tie into nursing program at CSB.
Following the presentation the Board discussed the local economy, existing goals/priorities and
the volume of information reviewed. Board members requested copies of the presentation for
review and referral between this meeting and the next. Board members will resume discussion
and finalize the economic development plan draft at the April EDA meeting with presentation to
the Planning Commission expected in May.
Board Member Announcements.
Mayor Carlbom announced the formation of a Communications Committee for the City. Thus far
those on the committee include Council Members Renee Symanietz and Steve Frank and City
Administrator Judy Weyrens. Carlbom stated the purpose of the Committee was to help provide
information to the public and to manage the gathering and distribution of information. The
Committee's initial task would be to institute a communications plan. Carlbom asked whether or
not the EDA should be represented on the Committee. Board Members suggested EDA
representation on the Committee be re-addressed at the April meeting as Carolyn Yaggie-Heinen
was not present.
Mayor Carlbom announced that beginning in April, 2007 all regular public meetings, including
EDA meetings, were to be televised. Carlbom noted the decision had been made and was final.
Wick inquired as to whether the Communication Plan and Committee should be established prior
to the requirement for televising meetings becoming effective. Skahen asked what the cost of
televising would be and whether or not the EDA would be responsible for such costs. Jacobson
suggested a list of "do's and don'ts" for televised meetings be compiled. Carlbom agreed to delay
implementation of televising meetings until additional discussion could take place at the April
meeting. Strack will create list of'do's and don'ts' for review at the April meeting.
Adjournment.
Meetin~ adjourned by~cons~en~sus at 4:20 PM
EDA Minutes -March 21, 2007