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HomeMy WebLinkAbout[03a] MinutesCITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, November 18, 2009 Agenda. Chairperson Wick introduced the agenda. Wick ted mo consideration for Stonehouse Operations up to requested item 5(e) be added to the agend d.b.a. The Local Blend. Moved by Skahen and seconded by Motion carried 5-0. Rassier, Tom Skahen, and Dorian the St. Josea rder at 3:03 'in g VA Application and RLF acco eeting guests. Strack of BFA Prego Properties LLC, the aforementioned changes. Strack requested clarification as to the number of employees currently versus those projected post remodel. Petrek stated a total of ten new full time positions and 15 part time positions will result from the remodeling /expansion. Strack requested input regarding proposed security, collateral for the loan expressing a preference for a second position on real estate. Bill Nelson stated a second position was difficult for several reasons including the cost of an appraisal for the property, disagreements in the methodology of any appraisal during turbulent times for restaurant properties, and the desire of the Developers to reserve a second position on the mortgage for a larger secondary lender. Nelson indicated a preference for an unsecured loan. Strack indicated the potent, Qr iss ce of a loan without security was very low and she would not recommend the EDA conside . Strack further noted the EDA has requested personal guarantees from corporat , -- ffic o a promissory note. EDA members echoed a need for security in conjunction wit, an. Skahen questioned what kind of financial informa indicated that depended on type of collateral prop and proformas for the restaurant and personal guarantees. Strack further noted that financial info shared with the RLF review subcommittee. Wick asked the EDA for direction on the agenda item. the first to send the RLF application to the review,, financial information was submitted prior to con future meeting following submittal of a comple Motion by Skahen, second by Heinen Stonehouse Restaurant contingent upon Motion approved 5:0. EDA members available to the se he review Discussion then turned to th the application included in tl the Developers revealed a noted the remodeling /expans stand -alon M',-a k yet don.;= Mot ion Minutes. Wick introduced EDA Accounts Wick introduced the Deve ers. Strack m historical for personal ,onsidere and only n Lhad w o apparent options, ittee plete application and ommitte ion on the matter to a of the RLF application from i)lication prior to loan review. Heinen, Wick, and Skahen. )n sub `hehouse Properties, LLC. Strack noted ;ed place new sign but subsequent discussion with A was planned in addition to replacement of a sign. Strack qualify for the BFA grant whereas the sign was clearly not a elopers plan to resubmit the BFA application but have not to app BFA application contingent upon the submittal of a remodeli /expansion project as discussed in conjunction with the from the October 28, 2009 regular EDA meeting. approve the minutes from the October 28, 2009 regular meeting as noted accounts payable for the month which totaled $2,611.40. Motion by Jacobson, second by Rassier to approve the EDA accounts payable for the month of October 2009 in the amount of $2,611.40. Motion carried 5-0. Financial Report. Wick introduced the agenda item and noted the October 2009 year to date Treasurer's Report was included in the packet. EDA Minutes — November 18, 2009 4 2 Motion Rassier with a second by Heinen to approve the financial reports as presented. Motion carried 5- 0. RLF Application Prego Properties, LLC d.b.a. The Local Blend Chairperson Wick introduced the agenda item. Strack stated the EDA had received an application for the RLF Program from Jeff and Stacie Engholm Owners of Prego Properties, LLC. dba The Local Blend. A copy of the application was included in the EDA packet for information. At the previous meeting the EDA authorized review of the application by a subcommittee. Pursuant to the EDA action the application and suppc projections have been received and reviewed by the EDA Member Jacobson, EDA Member Skahen, ; Institution, Doug Danielson, and EDA Director Strac in the amount of $24,000 for a term of either five or , three percent (for seven year term). The Applicants `( at three percent. The loan will be secured by a secom guarantee from the company owners. There is adeque at a loan to value ratio of less than .9:1. Staff have di promissory note, mortgage, and personal guaranty for the EDA to the City Council is kindly requested Motion Heinen, second Wick to recomrr from the Revolving Loan Fund in the ai percent secured by a second mortgage guaranty from the Applicants. Motion can EDA Marketing Position Chairperson Wick introduced distributed to EDA members. capital improvement program marketing outreach efforts by comment on what the EDA ii�< as a starting point. inquired as to what ract would be can _which allows for a a "1` o Prego Properties LLC of seven years at a rate of three ,Minnesota Street and a personal and refe two le job descriptions that were being °the Cityttb" oatinuing to review the 2010 budget and ted the Cit, agreed in principle to seek additional effective imm ick stated the EDA was being asked to �ff person's duties should entail using the sample job descriptions felt ch out to existing and potential business owners to fill id to inc usiness activity. The Council favors the creation of a roximately - , urs per week (2 '/ to 3 days per week) to accomplish to the existing contract for professional services. Wick stated noted a clause in the current agreement for professional on period between the professional services contract and staff Heinen in=Ras-'s- ho donduct other duties completed at this time by the professional services contract. arketing staff person would complete activities currently administered W under the profess n i, s contract and perform additional marketing outreach, apply for grants, update marketing rriatals met with development leads, pursue advertising deals, and update the website. y Heinen suggested removing 'marketing' from the job title in favor of the title of "Community Development Director" as included in the sample job descriptions. Wick inquired as to whether or not EDA members were stating more than just a marketing position was needed. EDA member affirmed the statement. Rassier stated the City Council felt strongly that economic development efforts needed to try harder and do something more to fill more businesses and get more people into town while reducing costs. Heinen EDA Minutes — November 18, 2009 5 3 inquired as to whether it was realistic to attract a staff member who met desired qualifications, who would serve more hours per week for less than the existing professional services contract. Rassier noted the job market at this time seemed favorable as evidenced by a report from the City Administrator. Skahen stated a qualified part-time applicant could be difficult to find. Rassier stated the ideal candidate would be a retired business owner looking for part-time employment. Wick asked EDA members what duties other than marketing s" be luded in the job description. Heinen suggested grant writing, attendance at board meetings fir':. Zation of the EDA at official functions. Heinen asked Strack for input on the job descn #ion. raged EDA members to think about specific outcomes desired prior to creating a r ii ic, measureable outcomes were desired the job description and posting should,,,,,, r #hose !~ to be fair to applicants as well as furthering the City's desires. a Skahen suggested the position would be more eft expressed a desire to be sure to gain something frc Council wants to do is to lower the cost of staff for efforts. Wick stated that if the part-time staff person K would get more for their money. The discussion concluded by Wick reaffirming be expanded to include more than marketing ;d„ SCSU Study Wick introduced the agenda topic. Strack by today's meeting date, Dr. Edwards wa with graduate students in charge offtpi Disbursement of BFA Grant to Chairperson Wick introduced._i distributed. Motion Wick, Second Heinen 5:0. e noted he had"; iris Coborn an( ng with the com buted a memo the meeting v( it Blend item an a full -tim sition and Rassier st Wt the City s „improving elopment Ac, hours per week then the EDA the part,_ job description should jha y was expected to be complete of adti, etails and to review revised data �d that'.;„ st ch no action was required. invoice for the project that was being Disbursement for The Local Blend project. Motion approved ibbon 66ifii at Coborn's Superstore earlier in the day. Rassier thanked the EDA, the Planning Commission, and the City Council )osal through grand opening. A and requested the language included in the memo be placed in follows. I g with a MA, a Members and staff of the EDA, and believe I, as a committee member hey fiways d) spectful and in the best interest of the city on all the matters that r x have come�� fore m 4 ' understand there will be disagreements among us and that is acceptable se reactions do not become disreputable. Some recent events have left me concern a city is neglecting to notice or failing to admit the hostile environment that is developing ` d the demeaning, verbal harassment that is occurring as a result of opposed votes between committee members. 1 have decided that unless the city adopts and efficiently administers a set of moral and ethical rules for all city employees and committee members to follow, 1 will resign from my position with the EDA. Thank you for your time regarding my concern. 1 will be looking forward to the city's response to this matter in written form no later than December 18, 2009. EDA Minutes — November 18, 2009 The EDA board discussed the memo and questioned Jacobson as to details included in the memo. Motion Wick, second Skahen to recommend the City Council investigate whether or not written ethics policies or guidelines relating to City commissions, committees, and boards were in place. In the event such policies/guidelines do not exist the EDA recommends such items be established and placed into effect in 2010. The EDA further requests the incident prompting the submittal of the memo be investigated by the City Council. Motion approved 4:0, with Jacobson abstaining. Wick noted he was not at the Coborn's ribbon cutting featured a speaker from Michigan State who addres times. Wick stated he requested a copy of the present EDA members for review. 141, Adjournment. Meeting adjourned by consensus at 4:45 PM. SCAEDP meeting which ant in difficult economic id wished to provide it to EDA Minutes — November 18, 2009 7 5