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HomeMy WebLinkAbout[03] MinutesCITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes – Wednesday, October 28, 2009 Present: EDA Board Members Carolyn Yaggie-Heinen, Ken Jacobson, Tom Skahen, and Dale Wick. Absent: Al Rassier. Also present: Jeff Engholm, Prego, Inc.. (d.b.a. The Local Blend), Bob McCoy, EDA Director Cynthia Smith-Strack. Chairperson Wick called the October 28, 2009 regular meeting of the St. Joseph EDA to order at 3:03 p.m. Agenda. Chairperson Wick introduced the agenda. Wick suggested moving item 5(a) BFA Application for The Local Blend up to item 2(a) to accommodate meeting guests. Moved by Skahen and seconded by Heinen to approve the agenda with the moving of item 5(a) to 2(a). Motion carried 4-0. BFA Application: Jeff/Stacie Engholm, Prego, Inc. (d.b.a. The Local Blend). Chairperson Wick introduced the agenda item and Jeff Engholm owner of Prego, Inc.. and Engholm’s Design Consultant Bob McCoy. Strack stated the EDA had received an application for the Business Façade Architectural (BFA) Grant Program from Jeff and Stacie Engholm, Owners of Prego, Inc. dba The Local Blend. A copy of the application is attached for review. The application illustrates a total of $7,000 to $9,000 in visible improvements to the Local Blend structure; however, a revised estimate from the contractor, Remodeling Professionals, illustrates a total project of $25,000. The difference in price is due to tuck pointing for the entire front façade being included in the storefront revitalization. Proposed improvements include replacement of storefront windows (retain size/shape) for energy efficiency, tuck pointing, re-hanging of awning, and signage updates. Engholm shared renderings of proposed window and signage changes with the EDA. Highlights include installation of new storefront windows, decorative lighting, three-dimensional signage, raising the awning, replacement of awning fabric, and tuck pointing throughout the front façade. Engholm would like to proceed with the project this fall so as to avoid another heating season with the existing windows. Engholm hopes the façade remodel/restoration will encourage other property owners west of College Avenue to pursue similar projects. McCoy reviewed color palette to be employed and details of lettering for signage. EDA Members Skahen, Jacobson, Heinen, and Wick spoke in favor of the BFA grant request. Jacobson inquired as to whether or not two BFA applications were in order, one for the storefront remodel/restoration and a second for the signage improvement. EDA members concurred the BFA grant had been used for both types of projects in the past, but under one grant request as opposed to two. Strack stated Prego, Inc. would also be applying for assistance from the EDA’s revolving loan fund. The loan application was nearing completion and was expected to be filed within the week. Strack noted two members of the EDA would need to assist in loan application review as per EDA RLF policy. Motion Jacobson, second Heinen to approve a BFA matching grant of $1,000 to Prego, Inc. d.b.a. The Local Blend to support design and construction costs for façade enhancements in the Central Business District. Motion approved 4:0. Heinen, Jacobson, and Skahen indicated they would be available to review a RLF application on th November 4. Approval of Minutes. Chairperson Wick introduced the minutes from the September 23, 2009 regular EDA meeting. Motion by Skahen, second by Wick to approve the minutes from the September 23, 2009 regular meeting as presented. Motion carried 4-0. EDA Accounts Payable. Wick introduced the topic. Wick noted accounts payable for the month which totaled $2,714.25. Motion by Jacobson, second by Heinen to approve the EDA accounts payable for the month of October 2009 in the amount of $2,714.25. Motion carried 4-0. Financial Report. Wick introduced the agenda item and noted the September 2009 year to date Treasurer’s Report was included in the packet. Motion Jacobson with a second by Skahen to approve the financial reports as presented. Motion carried . 4-0 Meeting with Rental Property Owners/SCSU Study Wick introduced the agenda topic. Strack distributed revised off-campus residential numbers from CSB/SJU and updated EDA members on a meeting held with rental property owners, Dr. Edwards, CSB th Representatives, elected officials, and EDA members. The purpose of the October 14 meeting was to discuss the draft SCSU study. As a result of the meeting, the draft study will be updated after additional research is performed regarding the actual number of CSB/SJU students renting units within the City of St. Joseph. In addition, several rental property owners attending the meeting expressed an interest in serving on a task force, study group or a similar entity in an effort to work on the transitioning of property to other potential uses. The SCSU study will be finalized by Dr. Edwards at which time the EDA will receive the final study for action/recommendation to the City Council. As a result of the meeting with landlords, Dr. Edwards agreed to amend the study to reference the following: (A) intangibles like if student rentals are changed to general market rents, rent yield will decrease; (B) probability that if the value of investment property (rentals) decreases that tax yield will decrease; probability that if investment property is converted to SF owner occupied tax yield will decrease due to different tax classification; (C) enrollment fluctuations may impact investment properties more since on-campus beds will be filled prior to investment properties). Strack noted the revised calculations from CSB/SJU relating to students living off campus revealed a total of 981 students (500 CSB; 481 SJU) live off-campus. Of those 258 do not live in St. Joseph; leaving 723 with either off-campus addresses in St. Joseph or off-campus addresses studying abroad. We know from landlords that those living off campus and studying abroad do not receive a break in rent. They must either pay rent, have others living in the rental make up the difference, or sub-lease. CSB/SJU report 277 student rent apartment units in St. Joseph, 226 rent single family homes; 220 reported with OFF campus addresses who are studying abroad in fall count. If we factor in those studying abroad we are close to numbers received from landlords. The EDA requested Strack direct Dr. Edwards to strike all language within the study relating to students from SCSU, St. Cloud Technical College, Rasmussen and the like. EDA Minutes – October 28, 2009 2 The EDA discussed timing of the study update and expressed a desire to act on the measure at their th November 18, regular meeting. The EDA would like a copy of the revised study prior to the meeting. Strack was directed to coordinate the update. Tour of Coborns Members of the EDA were invited to meet at the new Coborn’s facility for a tour prior to the grand opening th which is scheduled for November 18. Board Member Announcements th Skahen noted he was invited to a ribbon cutting for Coborns on November 18 at 9 a.m. Adjournment. Meeting adjourned by consensus at 3:45 PM. Cynthia Smith-Strack EDA Director EDA Minutes – October 28, 2009 3