HomeMy WebLinkAbout[02-1] Section 1 - Public Benefit of Business IncentivesSection One
Public Benefit of Business Incentives
25 FULL-TIME JOBS CREATED 8~ 50 -110 PART-TIME .LOBS CREATED:
The following full-time employment positions will be created in St. Joseph as a result of the
business assistance. An additional 50 to 110 part-time employment positions will also be
created.
TABLE 1
FULLTIME EMPLOYMENT POSITIONSIWAGES
Job Title Hourly Wage Proposed Business Assistance
Requirement (minimum)
Store Manager $ 26.00 $ 14.60
Assistant Store Manager $ 18.00 $ 13.32
Bookkeeper $ 14.00 $ 14.92
Scanning Coordinator $ 14.00 $ 13.32
Meat Manager $ 21.00 $ 13.32
Meat Cutter $ 18.00 $ 13.11
Meat Service Counter $ 16.00 $ 9.70
Deli Manager $ 17.00 $ 13.32
Deli Assistant Manager $ 13.50 $ 13.32
Deli Clerk $ 11.50 $ 9.70
Bakery Manager $ 16.00 $ 13.32
Cake Decorator $ 12.00 $ 13.01
Produce Manager $ 18.00 $ 13.32
Produce Clerk $ 12.50 $ 9.70
HBC/GM Department Manager $ 14.50 $ 13.32
Liquor Manager $ 14.50 $ 13.32
Evening Shift Manager $ 13.50 $ 13.32
Swing Shift Manager $ 14.50 $ 13.32
Overnight Shift Manager $ 14.50 $ 13.32
Overnight Asst. Shift Manager $ 13.50 $ 13.32
Frozen Department Manager $ 14.50 $ 13.32
Dairy Department Manager $ 14.50 $ 13.32
Pharmacy Manager $ 59.00 $ 58.25
Pharmacist $ 56.00 $ 58.24
Pharmacy Technician $ 15.70 $ 14.45
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INCREASES RETAIL TRADE AREA BY 140%:
A study commissioned by the City of St. Joseph and completed by McComb Group, Ltd. in
2007 illustrates the affect a supermarket will have on the retail trade area. The study which
was accepted by the City Council includes the following illustration. The yellow line illustrates
the trade area with a supermarket; the blue is the trade area without the supermarket.
FIGURE 1
INCREASE IN TRADE AREA
Additional information/applicable excerpts from the 2007 McComb Group Study are attached
to this memo as Exhibit B. In summary the report concludes:
"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"
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iii. "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"
iv. '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".
`A supermarket will increase supportable square footage of retail stores and
services within the City of St. Joseph".
vi. 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
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.
INCREASES RETAIL TRAFFIC TO AREA:
An exercise conducted by Rice Builders illustrates the supermarket will increase retail traffic
by 8,000 to 9,000 cars per week. The increased traffic will support existing and new retail and
service establishments and expand the retail market drawing area.
INCREASE IN TAX BASE:
As illustrated in estimates provided by the City's Abatement Specialist, the project will result in
an increase in the City's portion of property taxes estimated at $25,000 to $30,000 annually
over the agreement term. The school district and Stearns County will also benefit from new
taxes generated by the project.
SPIN-OFF OPPORTUNITIES:
The presence of a large 'anchor' retailer at the intersection of CSAH 75/CR 133 has already
resulted in spin-off business. The PUD which created the Coborn's site also created two
additional parcels. CentraCare Clinic has located on one of the parcels. Central Minnesota
Federal Credit Union has purchased the remaining parcel and is currently under construction.
The Planning Commission and the City Council re-designated the Spring Green site from
future industrial to future commercial as a result of the pending development of the
supermarket. Finally, the lot west of the PUD is the subject of a preliminary plat/development
request and could house professional services. Additional spin-off is likely to occur as a result
of the development.
BUILD-OUT OF PROMINENT INTERSECTION:
The supermarket will complete an aesthetically pleasing and uniform planned unit
development at the corner of a major intersection within the City of St. Joseph.
CONSISTENT WITH LONG-RANGE PLANS/ZONING:
The comprehensive plan guides the subject parcel to vehicular oriented commercial. Current
zoning class is B-2, Highway 75 Commercial. Supermarkets, fueling stations, and car washes
are allowable uses in the applicable zoning classification. The project is consistent with the
2008 Comprehensive Plan Update and existing local controls.
NOT SPECULATIVE DEVELOPMENT:
The project is not speculative development. 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.
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