HomeMy WebLinkAbout[03] Business - CobornsCITY OF ST. JOSEPH
W~~-W. cityo~stjoseph.com
DATE: May 20, 2009
MEMO TO: Economic Development Authority
Honorable Mayer Rassier
Members of the City Council
Administrator Weyrens
Administrator FROM: Cynthia Smith-Strack, Municipal Development Group
Judy Weyrens
RE: Request for Tax Abatement Assistance - Coborn's Inc.
Mayor
Al Rassier
Councilors REQUEST:
Steve Frank Coborn's Inc. and Rice Building Systems, Inc have submitted apre-application for $300,000 in
Bob Loso tax abatement assistance for the construction of a 35,500 square foot grocery superstore at
Renee symanietz 1500 Elm Street East. A copy of the abatement pre-application is attached for your review.
Dale Wick
The term of the agreement requested is ten (10) years. When completed the project's
EDA estimated market value is anticipated to be $3.4 million (using the League of Mn. Cities
Carolyn Paggie- Property Tax Estimator); construction cost is estimated at $2.7 million. A site plan (draft) for
ueinen the proposed development is attached.
Ken Jacobson Tax abatement assistance is reouested in order to help the project move forward. The
Al Rassier Applicant's have provided the EDA/City with preliminary pro forma analysis illustrating the
Tom skahen development will not cash-flow absent assistance. Applicable data will be distributed at the
Dale wick joint meeting as it is proprietary in nature.
GUESTS:
Representative(s) of the company will be present to answer questions regarding the
preliminary application.
Traci Ryan, the City's abatement specialist will be available to answer questions regarding the
abatement plan.
REQUIREMENTS: PRELIMINARY ABATEMENT APPLICATION:
The following are required to be submitted with the preliminary application for abatement
assistance:
1. A MAP SHOWING THE EXACT BOUNDARIES OF THE PROPOSED DEVELOPMENT.
Two separate attachments relate to this requirement.
i. First, the Company has developed a preliminary site plan for the construction
which is anticipated to begin by early summer.
ii. Second, the City's Abatement Specialist following discussion with the EDA
Director and City Administrator have developed a map of an expanded
abatement district boundary is attached. The map includes other retail and
service oriented commercial property adjacent to CSAH 75 (Lambert parcel
south of Boulder Ridge, Indian Hills Development, St. Joseph Professional Plat
area, Parkway Business center area.
The expanded boundary may or may not be included in the abatement plan.
Inclusion in the abatement plan sets a policy for potential areas where
consideration of abatement assistance may be warranted, but does not
guarantee the issuance of abatement for a future project. Consideration of
abatement assistance for the proposed areas can address a competitive
disadvantage between commercial development in St. Joseph and communities
to the west in that small cities to the west are allowed to consider the use of tax
increment financing for service/retail projects whereas St. Joseph is barred from
such an incentive due to its proximity to a city with a population greater than
10,000 persons.
In addition, consideration of abatement assistance can be used to reduce costs
associated with site preparation (e.g. Lambert property, Indian Hills Plat) and/or
site acquisition/improvements (e.g. Parkway Business Center, St. Joseph
Professional Plat).
2. A GENERAL DESCRIPTION OF THE PROJECT:
The proposed single story structure will be utilized for a supermarket (Phase I)
with full build-out of the facility including ancillary automobile fueling (Phase II)
and washing structures (Phase III). The building design is similar to Coborn's
Superstore structures existing in Clearwater and New Ulm. The proposed
commercial facility will provide food service and produce to a regional market
area.
The applicant wishes to proceed with site plan approval to coincide with
consideration of this abatement request. Construction will be initiated in early
summer with occupancy planned by the close of the year.
Parking is provided on site under a shared parking/access easement in
conjunction with a planned unit development agreement. The Planning
Commission must approve the facility site plan, including parking requirements.
The EDA does not have jurisdiction over parking lots.
Construction costs are estimated at $2.67 million. The resulting development is
expected to be valued at $3.4 million as per the League of Minnesota Cities
Property Tax calculator. Property taxes generated are expected to increase from
$8,200 to $104,500 of which the City's portion is expected to increase
approximately $40,000 per year.
3. THE EXISTING COMPREHENSIVE PLAN LAND USE DESIGNATION AND ZONING OF THE
PROPERTY.
The comprehensive plan guides the subject parcel to vehicular oriented commercial.
Current zoning class is B-2, Highway 75 Commercial. Supermarkets, fuelling stations, and
car washes are allowable uses in the applicable zoning classification.
4. A STATEMENT IDENTIFYING HOW THE INCREMENT WILL BE USED AND WHY IT IS
NEEDED TO COMPLETE THE PROJECT.
The abatement will be used to assist with the following eligible expenses associated with
the development: site acquisition, site preparation, construction, and utility
placemenUservice/connection. Preliminary sources/uses of abatement proceeds are
included in the attached application from the Company.
5. A STATEMENT IDENTIFYING BENEFITS TO THE PUBLIC.
The preliminary application illustrates the project will bring the following benefits to the
community:
Addition of 25 full-time and 110 part-time jobs with wages ranging from
$50,000 per year to $8.95/hour.
ii. An increase in retail traffic of 8,000 to 9,000 cars per week expanding
retail market drawing area.
iii. A $2.67 million structure completing the development of a 13 acre
professional service/retail PUD at the intersection of CSAH 75 and CR
133.
iv. An increase in local property taxes of $40,000 per year (initial projection).
v. Spin-off opportunities.
6. A WRITTEN PERSPECTIVE OF THE DEVELOPERS COMPANY (I.E. CORPORATION,
PRINCIPALS, HISTORY, PAST PROJECTS, ETC.).
The following statement is included in the abatement application:
"Coborn's, Inc. is an 87 year old, family and employee owned company based in St. Cloud
with more than 6, 000 employees. Today they own and operate 34 Coborn's and Cash
Wise Foods grocery stores, along with numerous convenience, liquor and Save-A-Lot
stores throughout the upper Midwest. In the local St. Cloud area, Coborn's operates five
Superstores and one Cash Wise store".
3
ABATEMENT POLICY:
1. GENERAL POLICY: "The City of St. Joseph and EDA shall consider tax abatement for
projects that serve to accomplish the City's goals for housing and economic
development as they may change over time".
The request meets this policy criterion as illustrated by the following findings of an
independent market study completed by McComb Group, Ltd. in 2007:
Construction of a supermarket on Coborn's site is the most important retail
development that is on the horizon. It is extremely important that St. Joseph
initiate the planning activities that will permit other businesses in St. Joseph to
benefit from this investment when it occurs.
ii. St. Joseph retailers [currently] compete with retail stores and services in [Cold
Spring, Albany, Avon, Rockville, and Richmond]. With fewer retail stores and
services, St. Joseph has less of a competitive impact on these communities.
This will change when a Coborn's store opens. Coborn's store would be
larger than the competitive supermarkets in these towns and would attract
grocery shoppers to St.Joseph.
iii. A supermarket would improve the prospects for senior housing.
iv. The current trade area includes St. Joseph and Avon. St. Joseph's
supermarket trade area extends further west, north and south to include the
communities of St. Anthony, Freeport, Albany, Holdingford, Richmond, Cold
Spring, Rockville and a portion of St. Stephen.
v. Adding a supermarket to St. Joseph's commercial area will expand the trade
area by about 140 percent. Residents from this expanded trade area
represent potential new customers for current and new businesses in St.
Joseph.
vi. A supermarket will increase supportable square footage of retail stores and
services within the City of St. Joseph.
vii. As illustrated in the following table included in the 2007 market research
study, the volume of commercial acreage needed to accommodate increased
retail and service activities is greatly influenced by the presence (55 acres of
retail/service demand by 2016) or absence (26 acres of retail/service
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demand) of a supermarket within the community. The acreage forecasts are
based on 10,000 sf of commercial retail/service per acre of developable land.
2. OBJECTIVES: "The City of St. Joseph and EDA will consider using tax abatement to
assist private development projects to achieve the following objectives":
To increase the number and diversity of quality jobs (i.e. stable
employment and/or attractive wages and benefits) locally.
To encourage additional unsubsidized private development in the
area, either directly, or through secondary "spin-off' development.
iii. To facilitate the development process and to achieve development on
sites which would not be developed without this assistance.
3. COSTS THAT QUALIFY FOR ABATEMENT ASSISTANCE:
The abatement will create of a minimum of twenty-five (25) full time equivalent
employment positions and an additional 110 part-time postitions. Upon final
application additional information regarding the occupational classification of proposed
jobs will be submitted. The abatement proceeds will be used to help offset property
acquisition costs, site preparation costs, construction-related costs, and costs
associated with extension of facilities/utilities.
4. MINIMUM QUALIFICATIONS:
The proposed development will not occur without abatement
assistance as demonstrated by proprietary analysis which will be
distributed and re-collected at the meeting.
ii. The project is consistent with the Comprehensive Plan and zoning
ordinance. The subject parcel is guided for and zoned for highway
commercial use.
iii. The tax abatement request will be limited to a refund of a portion of
the local property tax paid by the project for a limited period of time. In
the event property taxes are not paid, or the expected property tax
revenue generated is lower than that projected, the actual refund may
be lower.
iv. The Applicant is the fee owner of the subject property.
5. DESIRED QUALIFICATIONS:
a. Taxes paid before and after the development should be greater than a 2:1 ratio.
Current property taxes payable on the subject parcel equal to $8,200 with the
City's portion equal to $3,600. Taxes post construction are estimated $104,000
annually with the City's share expected to increase approximately $40,000.
b. Abatement should not be used for speculative projects. The Applicant has a
proven track record of operating successful retail goods/produce stores for over
87 years. The Applicant currently operates successful retail goods/produce stores
in 34 different areas.
c. No extraordinary demands on the utility systems are anticipated as a result of the
development.
d. Preference will be given to projects that are consistent with the comprehensive
plan, that improve surrounding land uses, that provide new employment, that are
financially feasible, and that provide the highest and best desired use for the
property. The project meets all of the aforementioned criteria.
ACTIONS:
If the EDA is supportive of utilizing abatement for this project, a MOTION is in order to:
Recommend the City Council approve the pre-application and authorize submittal of
the final application and fee.
Call for a public hearing on the request
Following action by the EDA and if the City Council is supportive of utilizing abatement for
this project, a MOTION is in order to
Approve the pre-application and authorize submittal of the final application and fee
ii. Approve a Resolution calling for a public hearing on the request
BUILDING SYSTEMS, INC.
May 20'h, 2009
Judy Weyrens, City Administrator
City of St. Joseph
25 College Avenue North
St. Joseph, MN 56374
RE: TAX ABATEMENT REQUEST
PROPOSED COBORN'S SUPERSTORE
Dear Judy:
Coborn's, Inc. is proposing to construct a new Coborn's Grocery Superstore located at 1500 Elm Street East (Lot 3,
Coborn's Realty Company Plat). The Coborn's Superstore will be the third project in the Coborn's Realty Company Plat,
completing a PUD plan developed over a year ago with the City of St. Joseph. As part of the planning process, financial
models and pro forma's have been developed showing an initial operating loss due to project costs, competition, and
economic conditions. Because of this anticipated loss, Coborn's is requesting assistance from the City through the use
of the Tax Abatement program.
As requested, we have completed the TIF/ Tax Abatement Preliminary Application. The items as required on the
application are listed below.
DEVELOPER & HISTORY:
Coborn's, Inc. is an 87 year old, family and employee owned company based in St. Cloud with more than 6,000 employees.
Today they own and operate 34 Coborn's and Cash Wise Foods grocery stores, along with numerous convenience, liquor
and Save-A-Lot stores throughout the upper Midwest. In the local St. Cloud area, Coborn's operates five Superstores
and one Cash Wise store.
In 2006, Coborn's purchased 13 acres in the Buettner Business Park with the intention of developing the site at some
point in the future. In 2008, Coborn's replotted the 13 acres creating a PUD with three (3) lots. Coborn's recently has
sold two (2) lots along County Road 133 to CentraCare and Central Minnesota Credit Union. The remaining lot (lot 3) is
currently designed for a future Coborn's Superstore.
PROJECT DESCRIPTION:
As part of the PUD replotting process completed in 2008, a preliminary site plan was developed illustrating a 41,406 SF
store, car wash and fuel pumps. After completing Pro forma analysis and market studies, the success of the project
depends on phasing the construction of the Grocery store (phase 1), fuel pumps (phase 2) and car wash {phase 3). The
phasing process will allow Coborn's to grow into the St. Joseph market over time. The proposed project at this time
consists of Phase 1 (grocery store only).
As another cost reducing strategy, Coborn's is now proposing a smaller store of approximately 35,500 SF. The small,
new concept store is intended to reduce initial construction and operating costs, while still providing for future
expansion. The proposed 35,500 SF +/- store will include:
• Traditional "Superstore" departments including full service pharmacy, bakery, deli, produce, and liquor sales
• Designed to accommodate a future expansion up to 6,480 SF (41,980 SF +/- Footprint)
• Designed with numerous "green" features including enhanced landscaping & irrigation design
• 224+/- parking stalls
• Allowances for future construction improvements (gas pumps and car wash)
• Drive-Through Pharmacy
• Extensive daylighting (windows, skylights)
1011 South Benton Drive, PO Box 128, Sauk Rapids, MN 56379 (320) 252-0404 Fax: (320) 252-0470
www.ricebuildingsystems.com ~
City of St. Joseph
Tax Abatement Preliminary Application
May 20'h, 2009
PUBLIC BENEFITS:
Completing the development of the property includes public benefits such as:
JOBS: The proposed store is estimated to have 25 full time and 110 part time employees with wages ranging
from over $50,000/ year to hourly wage rates starting at $8.95/ hour.
PROPERTY TAXES: The taxable value of the property will be substantially higher after the development is
completed. Currently the 2009 Lot 3 property taxable value is $741,800 with estimated property taxes at
$8,188. The estimated building and site development cost of the improvements are $2,662,500 (total
estimated taxable market value of $3,404,200 upon completion by 12/31/09). Using the League of Minnesota
cities property tax estimator, the taxes upon completion are estimated to be $104,419. This represents an
increment of $96,231.
TRAFFIC: The proposed project is estimated to generate approximately 8,000 - 9,000 customer counts per
week, resulting in increased retail drawing power for neighboring businesses and the City of St. Joseph. The
store is anticipated to draw customers from within a 20 mile radius to the City of St. Joseph.
COMPLETE DEVELOPMENT: The proposed project will "complete" the development of the Coborn's Realty
Plot along with the CentraCare clinic and the Credit Union Development, currently under construction. This will
result in a completed "gateway look" as traffic enters the city of St. Joseph from County Road 75 & 133.
GREEN DEVELOPMENT: The proposed project will incorporate many green features that hove been used on
previous Coborn's superstores and new features that will be unique to this location. Features may include using
the stormwater retention pond for irrigation, extensive dnylighting and light shedding controls, utilizing new
technologies in energy usage, and possibly applying for LEED certification as one of only a handful of LEED
certified grocery stores in the country.
REQUESTED ASSISTANCE:
Based on our preliminary designs, the anticipated costs for the improvements are $2,662,500 ($3,404,200 project
valuation bused on 2009 property value of $741,800). After extensive internal financial modeling, an operating loss is
expected for the first ten to twelve years of operation. This is due to estimated competition, the growth of market
area, and forecasted economic conditions. We are requesting assistance from the city through the following items:
• A tax abatement amount of $300,000 spread out over the next ten (10) years
• A delay in payment of the WAC/ SAC charges Storting two (2) years after the store is completed (estimated
completion date is 12/31/09). The payment of the WAC/SAC amount is requested to be paid out over a three
(3) year time period.
These items together will help offset some of the expected loss with opening a Coborn's Superstore in St. Joseph at
this time. Without this amount of assistance, the project does not look feasible and Coborn's will need to reconsider
the timing and location of this store. We look forward to working with the city on this exciting development. If you
have any further questions, please contact us.
Respectfully Submitted:
COBORN'S, INC. & RICE BUILDING SYSTEMS, INC.
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Michael Wahlin
Director of Construction
Coborn's, Inc.
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Christopher Rice
President
Rice Building Systems, Inc.
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1. Mark Lambert Property, adjacent to Boulder Ridge Apartments, expect commercial
development adj. to Wobegon Trail.
t rau.
3. Subject property for proposed "Professional Plat" comm ~rcial use contemplated including a
t~~rn~ ~i1~
5. Currently industrial, site guided toward commercial, property owner indicates interest in
property for commercial purposes.
6. "Parkway Business Center" preliminary plat. Commercial/industrial mixed use.
10
CITY OF ST. JOSEPH
DISPOSAL PLANT OPERATION AND MAINTENANCE
SCHEDULE OF PLANT ASSETS, 2006 Billed to CSB 2007
ALL ASSETS ARE DEPRECIATED USING THE STRAIGHT LINE MEHTOD
MO/ USEFUL COST ACCUMULATED 2006 ACCUMULATED
YEAR DESCRIPTION LIFE AT DEPRECIATION STRAIGHT DEPRECIATION
OF OF OF DATE OF @ LINE Adjustments @
PURCH ASSETS ASSET PURCHASE 12/31/2005 DEPRECIATION 12/31/2006
LAND
1961 Sewer Plant Site 4,940.50
TOTAL LAND 4,940.50
BUILDINGS:
1987 Buildings 20 517,983.09 479,134.47 25,899.15 505,033.62
TOTAL BUILDINGS 517,983.09 479,134.47 25,899.15 505,033.62
TREATMENT PLANT AND LINES
Sewage Plant and Lines:
1-1-62 -Plant Costs--20 years 20 100,000.00 100,000.00 100,000.00
1-1-62 -Plant Costs--50 years 50 100,000.00 88,000.00 2,000.00 90,000.00
1-1-62 -Sewer Lines 50 92,541.65 88,366.89 1,850.83 90,217.72
6-30-79 Sanitary Sewer Improvement 50 90,469.00 47,948.56 1,809.38 49,757.94
1987 Cloverdale Estates 3 50 49,140.00 17,690.40 982-80 18,673.20
1987 Treatment Plant and lines(998555.09-9302.00) 50 989,253.09 366,580.19 19,785.06 386,365.25
1987 Treatment Plant 8 Lines Refund(see above)
1989 Cloverdale Estates 5 50 30,262.70 9,684.01 605.25 10,289.26
1990 County Rd 75 50 41,362.88 12,408.90 827.26 13,236.15
1992 91st Ave Sanitary Sewer Improvement 50 35,726.18 9,288.77 714.52 10,003.29
1992 East Baker Str 8 7th Ave SE 50 10,987.86 2,856.87 219.76 3,076.63
1992 Pond View Ridge 50 101,400.00 26,364.00 2,028.00 28,392.00
1992 Sanitary Sewer 8 Lift Station - Contract I 50 223,804.44 58,189.17 4,476.09 62,665.26
1992 Water Transmission Contract I 50 3,770.00 980.20 75.40 1,055.60
1993 Northland 2 50 37,298.30 8,951.63 745.97 9,697.60
1994 East MN Street 50 254,436.02 58,520-28 5,088.72 63,609.00
1994 Lift Station-DBL Labs 50 242,744.27 55,831.23 4,854.89 60,686.11
1994 Northland 3 50 42,027.44 9,246.05 840.55 10,086.60
1994 W Minnesota Street 50 3,087.50 679.25 61.75 741.00
1996 E Mn Str/Roske Site 50 44,720.00 8,049.60 894.40 8,944.00
1997 Pond View 3 50 63,375.00 10,140.00 1,267.50 11,407.50
1997 PondView4 50 50,810.44 8,129.68 1,016.21 9,145.89
1998 Cloverdale Estates 4 50 41,521.95 5,813.08 830.44 6,643.52
1999 90th / 91st Avenue total cost is $43 305 81 adj 04 50 33,430.18 5,196.72 866.12 6,062.83
2000 Business Park 50 85,327.22 8,532.71 1,706.54 10,239.26
1999 Joseph Street 50 51,117.28 5,111.74 1,022.35 6,134.08
1999 Northland 4th Addition (29 150 X9306 60)ad'I 04 50 29,150.00 4,614.78 769.13 5,383.92
1999 Pond View 5 50 71,220.53 8,546.46 1,424.41 9,970.87
2000 St. Joseph Street Improvement 50 202,285.04 20,228.50 4,045.70 24,274.20
2001 Dale Street Improvements 50 23,400.00 1,872.00 468.00 2,340.00
2001 Northland 5 Add( 320,075 feet)(183207+53696 10) ad'I 50 183,207.00 18,952.24 4,738.06 23,690.31
2001 PondView Rdg 6 (16,063 feetX:32610+16483 20)ad'I'04 50 32,610.00 3,927.45 981.86 4,909.31
2001 Sewer Capacity 50 840,000.00 75,600.00 16,800.00 92,400.00
2002 2002 Sanitary Sewer Improv-Future Site 50 13,215.80 792.95 264.32 1,057.27
2002 Business Park (34.727 X2138 34)ad'I 04 50 34,727.00 2,211.92 737.31 2,949.23
2002 County Rd 121(343215 10 ~326f~32)ad'I 04 50 326,632.00 40,190.82 13,396.94 53,587.77
2002 Graceview-completed 2005 50 274,560.00 5,491.20 5,491.20 10,982.40
2002 Indian Hills 50 69,485.00 4,169.10 1,389.70 5,558.80
2002 Interior Streets-completed 2005 50 196,431.18 3,928.62 3,334.51 7,263.13
2002 East Baker Str Lift Station-completed 2005 50 165,127.72 3,302.55 3,138.96 6,441.51
2002 Lift Station-County Road 121 50 366,635.00 21,998.10 7,332.70 29,330.80
2002 Northland Plat 6 50 161,394.00 10,882.20 3,627.40 14,509.60
2002 SE Utilities-completed 2005 50 169,133.64 3,382.67 3,079.00 6,461.67
2003 Graceview 2-completed 2005 50 338,665.70 6,773.31 6,773.31 13,546.63
2003 Liberty Pointe-completed 2005 50 192,919.68 3,858.39 3,407.48 7,265.87
2003 Northland Plat 7-completed 2005 50 118,384.89 2,367.70 2,210.12 4,577.82
2003 Pond View Ridge 7-completed 2005 50 84,240.00 1,684.80 1,684.80 3,369.60
2004 16th Ave Improvements-completed 2005 50 41,958.80 839.18 913.25 1,752.43
CITY OF ST. JOSEPH
DISPOSAL PLANT OPERATION ANO MAINTENANCE
SCHEDULE OF PLANT ASSETS, 2006 Billed to CSB 2007
ALL ASSETS ARE DEPRECIATED USING THE STRAIGHT LINE MEHTOD
MO/ USEFUL COST ACCUMULATED 2006 ACCUMULATED
YEAR DESCRIPTION LIFE AT DEPRECIATION STRAIGHT DEPRECIATION
OF OF OF DATE OF @ LINE Adjustments @
PURCH ASSETS ASSET PURCHASE 12/31/2005 DEPRECIATION 12/31/2006
2004 Callaway Street Improvements- completed 2005 50 11,923.61 238.47 226.77 465.24
2004 College Addition completed 2005 50 38,862.98 777.26 777.26 1,554.52
2004 Northland Plat 8-completed 2005 50 35,345.70 706.91 682.74 1,389.65
2004 Morningside Acres 50 249,209.04 4,984.18 4,984.18 9,968.36
2004 Trunk Water Main Impr-completed 2005 50 30,550.00 611.00 553.21 1,164.21
2004 Foxmore Hollow -completed 2005 50 107,770.57 2,155.41 2,155.41 4,310.82
2006 Cloverdale Improvements 50 161,027.08 0.00 3,220.54 3,220.54
TOTAL TREATMENT PLANT AND LINES 7,388,685.36 1,267,648.11 153,178.06 255,531.72 1,420,826.17
EQUIPMENT
7-1-73 1965 Ford Truck wlsewerrotor 0.00 0.00 0.00
6-1-76 Tractor--19.5 h. p. simplicity 10 2,994.73 2,994.73 2,994.73
2-1-83 Sludge tank--1972 20 4,200.00 4,200.00 4,200.00
1987 Equipment from 1986 Sewer Project 20 89,419.00 82,712.72 4,470.95 87,183.67
1987 Automatic Dialer 10 1,895.00 1,895.00 1,895.00
1989 Van, Confined Space (Used) 5 0.00 0.00 0.00
1999 Sludge Truck 5 1,703.75 1,703.75 1,703.75
1993 Regfrigerated Sampler 10 2,715.75 2.715.75 2,715.75
1995 Truck 10 15,117.55 15,117.55 0.00 15,117.55
1998 Dialer, Plant 5 2,549.70 2,549.70 2,549.70
1998 Gas Monitors 5 2,971.35 2,971.35 2,971.35
1999/20 Generator (1/2 water, 1/2 sewer) 30 37,022.20 7,404.43 1,234.07 8,638.50
2003 Generator Conversion (1/2 water, 1/2 sewer) 30 1,986.00 148.95 66.20 215.15
1999 Flow Meter 5 3,177.96 3,177.96 3,177.96
2004 05 Chevy Truck (112 Street Dept) 5 12,225.33 3,056.34 2,445.07 5,501.41
5-Dec Safety Cabinet 5 1,022.71 0.00 204.54 204.54
1/05 05 Ford F250 (1/2 Str)VIN 1FTSX21515FB72994 5 10,888.56 2,177.71 2,177.71 4,355.42
1/05 05 Freightliner Chassis VIN 1FVACYDC55HU22955 20 50,974.09 2,548.70 2,548.70 5,097.41
1/05 Sreco Sewer Cleaner S/N WMT-042893 20 77,120.91 3,856.05 3,856.05 7,712.09
1/05 Sreco Easement mach S/N EMPS-6-04934 20 17,924.54 896.23 896.23 1,792.45
1/05 Air Conveyance Unit VIN 1J91118284C124541 20 67,143.99 3,357.20 3,357.20 6,714.40
Chev Snow Plow Truck 7 2,033.33 145.24 145.24 290.48
TOTAL EQUIPMENT 405,086.45 143,629.36 21,401.96 0.00 165,031.32
TOTAL ASSETS ~ 8,316,695.40 1,890,411.94 200,479.17 255,531.72 2,090,891.11
Total Depreciation 200,479.17 79,455.60
Depreciation Applicable to CSB 79,455.60 35,755.02
Depreciation Charged CSB 35,755.02 35,755.02
CSB Uepreciation Allocation (45°/) 35,755.02 35,755.02
0.00 -
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF ST. JOSEPH, MINNESOTA
HELD: May 27, 2009
Pursuant to due call and notice thereof, a Special Joint meeting of the City Council and EDA of St. Joseph,
Minnesota was duly held at City Hall on the 27th day of May, 2009 at 5:30 o'clock p.m. for the purpose, in
part, of calling for a public hearing on the approval of a property tax abatement.
The following Council Members were present:
and the following were absent;
Council Member introduced the following resolution and moved its
adoption;
RESOLUTION SETTING DATE FOR A PUBLIC HEARING
ON THE APPROVAL OF A TAX ABATEMENT RESOLUTION
FOR THE PURPOSE OF ASSISTING COBORN'S INC.
WHEREAS:
1. The City of St. Joseph has determined it necessary and feasible to assist Coborn's Inc. to
facilitate the construction of a new 35,500 square foot facility within its corporate limits; and
2. The City Council intends to abate its share of property taxes on the Coborn's Inc. development
parcel, under the authority of Minnesota Statutes 469.1812 to 469.1815 (the "Abatement Law"); and
3. Prior to approving an abatement resolution and the use of tax abatement the City must hold a
public hearing.
BE IT RESOLVED by the City Council as follows:
1. Public Hearing. The City Council shall hold a public hearing on the use of tax to provide
assistance to Coborn's Inc. to facilitate the construction of a new 35,500 square foot facility at 1500 Elm
Street, St. Joseph, MN at 7:00 P.M. on Thursday, June ', 2009 at the St. Joseph City Hall. Staff is
directed to publish notice of this hearing as required by Abatement Law.
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
and upon vote being taken thereon, the following voted in favor:
and the following voted against the same.
Whereupon said resolution was declared duly passed and adopted.
APPENDIX A
CITY OF ST. JOSEPH
COUNTY OF STEARNS
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING
on
APPROVAL OF PROPERTY TAX ABATEMENT
NOTICE IS HEREBY GIVEN that the City Council of the St. Joseph, Minnesota, will hold a public hearing on
Thursday, June 18~h, 2009 at 7:00 p.m., at the St. Joseph City Hall in the City of St. Joseph, Minnesota,
relating to the use of property tax abatement to finance up to $300,000 in assistance to Coborn's Inc. to
facilitate the construction of a 35,500 square foot facility located at 1500 Elm Street, pursuant to Minnesota
Statutes, Section 469.1812 to 469.1815, inclusive, as amended. The City intends to provide annual
abatement payments, the total of which will not exceed $300,000 collected over a period of not more than
eleven (11) years, commencing with taxes payable 2011. The following tax parcels are proposed to be
included in the proposed tax abatement:
84.53475.0202
84.53475.0200
84.53475.0201
Copies of the Abatement Resolution as proposed to be adopted will be on file and available for public
inspection at the office of the City Clerk at City Hall.
All interested persons may appear at the hearings and present their view orally or in writing.
Dated May 27, 2009
BY ORDER OF THE CITY COUNCIL
/s/Judy Weyrens
City Administrator-Clerk
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