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HomeMy WebLinkAbout[04] Minutes - December 23 2009CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes – Wednesday, December 23, 2009 Present: EDA Board Members Carolyn Yaggie-Heinen, Ken Jacobson, Tom Skahen, and Dale Wick. Absent: Al Rassier. Also present: Michael McDonald and EDA Director Cynthia Smith-Strack. Chairperson Wick called the December 23, 2009 regular meeting of the St. Joseph EDA to order at 3:01 p.m. Agenda. Chairperson Wick introduced the agenda. No changes were requested. Moved by Skahen and seconded by Heinen to approve the agenda as presented. Motion carried 4-0. Approval of Minutes. Chairperson Wick introduced the minutes from the November 18, 2009 regular EDA meeting. Motion by Heinen, second by Wick to approve the minutes from the November 18, 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 $10,611.40 and included monthly contract services and 2010 annual dues for the St. Cloud Area Economic Development Partnership. Motion by Skahen, second by Wick to approve the EDA accounts payable for the month of November 2009 in the amount of $10,611.40. Motion carried 4-0. Financial Report. Wick introduced the agenda item and noted the November 2009 year to date Treasurer’s Report was included in the packet. Strack shared information from the Finance Director regarding a pending transfer from the general fund to Fund 150. Strack also noted additional funds remain in the capital improvement lines for downtown revitalization and rental conversion, however, the EDA has approved a few BFA grants which are pending for reimbursement and the SCSU Study is being wrapped up and invoiced. . Motion Jacobson, second by Wick to approve the financial reports as presented. Motion carried 4-0 Approval of TIF Disbursements. Chairperson Wick introduced the agenda item noting information regarding the disbursements was included in the information packet. The disbursements are from the second half of property taxes paid in 2009. The first disbursement request was in the amount of $29,786.46 for TIF 2-1 (Vicwest) which is 90% of the tax increment for the project. The second disbursement request was for $2,800 for TIF 1-4 (Millsteam) which equates to 90% of the tax increment for the project. Motion Skahen, second Heinen to approve TIF disbursements in the amount of $29,786.46 for TIF 2-1 and $2,800 for TIF 1-4. Motion carried 4-0. í EDA Per Diem Requests. Wick noted annual per diem summaries for EDA Members who are not City Council Members have been prepared. Strack distributed per diem summaries for verification and signatures. RLF Policies/Guidelines Proposed Modifications. Chairperson Wick introduced the agenda item. Strack stated that following issuance of a revolving loan fund loan to The Local Blend, as is often the case, guidelines that were approved with sincerity prior to program administration when placed into practice revealed certain inadvertent complexities which hindered program administration. During the loan review process just completed a few challenges for program administration were noted. The first challenge was the current RLF guidelines restrict the percentage of the project that can be funded through the RLF to fifty percent (50%). In the case of very small loans (i.e. less than $25,000) this limit can be burdensome. The EDA/City will not consider an unsecured loan and those applying for the loan must provide a personal guarantee. Given the security and guarantee requirements it seems overly restrictive to require no more than 50% of small projects be funded through a loan from the RLF. The second issue was identified by the Finance Director and the loan review subcommittee who noted an absence of internal guidelines and review criteria when considering the recent loan application. To those ends, the Finance Director is requesting internal guidelines be established so as to maintain consistency in processing, record keeping, and loan evaluation. The EDA Consulting Director and the Finance Director collaborated to produce sample language which was included in the EDA packet. The EDA reviewed the proposed guidelines and noted a discrepancy between the RLF guidelines and the draft internal policy relating to minimum equity injection requirement for RLF projects. Motion Skahen, second Jacobson to authorize submittal of the RLF modifications and the internal RLF policy to the City Council with a recommendation to approve the items. Motion carried 4:0. Staff Community Development Director Job Description/Position. Chairperson Wick introduced the topic and referenced a Community Development Director job description that was included in the EDA packet. Strack noted the City Administrator was seeking additional information regarding number of hours and precise job description desired. Heinen had several suggestions to clarify the intended position description including, but not limited to, 1. Full time vs. part time position. 2. A more precise definition of work relating to diversifying and strengthening the economy of St. Joseph, such as a target for dollar value of growth over a period of time. 3. Creation of ‘shovel ready’ industrial lots by a certain target date. 4. Measuring amount of businesses recruited, expanded, and those being successful as a result of EDA participation. 5. Grant writing goals such as volume of grants written and how many are successful. 6. Add duties related to website updates. 7. Add ‘entrepreneurial experience’ to “Knowledge, Skills, and Abilities” paragraph. Skahen expressed concern over the cost of salary versus the amount of funding the EDA receives and the potential the dollars available for business outreach and/or incentive programs or capital improvements would be decreased due to increase in salary. Skahen stated the issue often seems to come down to what the City/EDA can afford. Jacobson asked whether or not the City or EDA was involved in the St. Cloud Chamber. Jacobson stated being in the Chamber would be a good thing, but if the EDA/City doesn’t have dollars to use to entice businesses it may not be a good investment. EDA Minutes – December 23, 2009 2 ì Skahen asked for clarification between the job description for a community development director and an economic development director. Skahen requested a job description for an economic development director be brought to the January meeting for additional discussion. The EDA reached consensus in opposition to a part-time community development director or economic development director. If a staff position is added the EDA suggests it be on a full-time basis and not a part-time basis. SCSU Study Wick introduced the agenda topic. Strack noted that one loose end remained regarding the SCSU study. The issue involves a roughly 200 student difference between those students who said they rented off campus and those that were listed on the CSB/SJU student roster. The difference impacts a second calculation included in the study as an alternative to basing the projected impacts on the number of beds being added at CSB/SJU. The EDA discussed the potential options to resolve the difference in the number of students and decided to include just one calculation in the residency change impact analysis. Motion Wick, Second Jacobson to include one calculation in the SCSU study relating to student residency change impact equating to 208 students moving back to campus. Motion carried 4:0. Draft Annual EDA Report Chairperson Wick introduced the agenda item. Strack noted the following successes for the year 2009: 2009 was a great year for tax base expansion in St. Joseph. $8 million commercial real estate value added to the City, most since EDA formed in 1998. $75,000 increase in local tax revenue due to commercial bldg this year. Reports from economists vary. Some say recession which started in 2007 is over, some say it is not, some say we are in for a ‘double dip’ recession. Regardless we can expect the economic slowdown to continue to plague the construction sector in St. Joseph for at least several months to maybe several years. New housing starts rebounded slightly this year, not anywhere near peak years of 2005 and 2006. Unemployment last year at this time higher that state average, now significantly lower. Still aware of several local businesses that are struggling. 2009 saw construction initiation/completion for Coborn’s Superstore and Central Minnesota Federal Credit Union. EDA instrumental in that tax abatement was issued for the Coborn’s project. Without abatement the project would have been shelved for an estimated ten years due to lost market share applicable to the super Walmart opening in Sartell. Coborn’s green-lighting the superstore led to the construction of the Central Minnesota Federal Credit Union and the platting of the parcel north/west quadrant of 133/75 by the Credit Union. An estimated 150 jobs were added to St. Joseph due to Coborn’s and Credit Union construction & opening. Spinoff at 133 is expected. Two calls today alone regarding traffic counts on 75 in vicinity of 133. 2007 Market Study indicated retail trade area would increase by 150% as a result of Coborn’s. An optometrist and a mental health professional practice were added to Millstream Shops/Lofts center. Also related to the Millstream building the EDA worked on redefining banners/signs for the Millstream building. The Local Blend completed a façade face lift with help from the EDA’s RLF and BFA. Scenic Specialties completed façade work on historic accessory structures with assistance from the BFA. One BFA application and one RLF application pending. Continue marketing of St. Joseph. This year website overhaul, included addition of a ‘one stop for business information page which includes information regarding how to start a business, EDA Minutes – December 23, 2009 3 ë choosing a business organization, creating a business plan, licensing/permitting information, zoning/site plan review information, available sites in St. Joseph, technical and financial assistance available through the EDA, advantages of doing business in St. Joseph and Mn. Also list available sites and bldgs as directed or acknowledged by property owners on the local website, SCAEDP website, and MnPRO website. EDA continues to promote downtown redevelopment. Landscaping/streetscaping planning is underway as commissioned by the EDA. Goals are to tie Wobegon Trail Center, College Avenue, Mn. Street, and west to new CSAH 2 areas together. The EDA’s 2010 capital projects approved in for next year include $20,000 for ‘revitalization efforts’ such as BFA grant, streetscape design, and rental conversion. EDA held a “Business Builder Breakfast” and listening session in June. EDA has worked tirelessly with SCSU Econ. Devl. Center on the study re: economic impact of CSB/SJU on St. Joseph and impact of a residency change. Met with CSB/SJU officials and landlords as part of the process. Group of landlords are interested in assisting the EDA/City with moving forward and creating an rental housing transition program. EDA met 13 times this year, 12 regular meetings and one special meeting. 10 new consistent business contacts were cultivated during the year. Follow up occurred with 23 carryover business contacts from previous years. EDA met with Gateway Developers and representatives from the Walz families regarding development of property in conjunction with new CSAH 2 construction which is slated for next year. Met with real estate representative and owners of DBL/MCO on numerous occasions. Toured facility, examined potential to lease portions of the building to different tenants. EDA continues to distribute information to project leads, review land use standards/provide advice on land use standards, participate in staff meetings and projects, and retain inventory of parcels. Moved forward on 2009 goals including proactive participation in preparing for development adjacent to new CSAH 2. Marketing St. Joseph. Reviewing local impact of residency policy changes. Efforts at outreach to industrial establishments continues to be plagued by a severe shortage of shovel ready industrial lots and the lingering effects of the recession which began in late fall of 2007. EDA Board Members discussed the report and achievements made over the previous year. McDonald questioned whether or not Table 1-2 should be adjusted to not only illustrate the volume of property tax increases but to also illustrate the volume of taxes being rebated back due to various tax increment and tax abatement projects. The EDA discussed the myriad of ways to calculate or examine economic development program success. The EDA decided not to list value of taxes being rebated as the sheer volume varied widely depending upon building evaluation, taxes paid, and jurisdiction. The Board discussed potential goals for 2010. Wick noted that the submittal for the St. Cloud Area Economic Development Partnership CED’s Plan included identification on the part of each member community of up to five (5) infrastructure projects. Wick suggested the identification of such projects be included as a goal for 2010. Jacobson and Skahen noted the Business Builder Breakfast was a successful event and should be replicated more often in 2010. Heinen suggested finalizing the landscape/streetscape plan and working on plan implementation could be a goal for 2010. EDA Minutes – December 23, 2009 4 ê The EDA Board asked for one more month to consider potential goals for 2010. The annual report will be brought back to the EDA for the January meeting. BFA Reimbursement Request: Russell Eyecare Wick introduced the agenda item. Strack noted that at the August 26, 2009 regular meeting the EDA approved a Business Façade Architectural Grant Program application submitted by Christie Russell- Villnow of Russell Eyecare. The BFA grant request included design and construction work relating to improvements visible from the public right of way. Ms. Russell has now submitted a request for payment which includes documentation of design and construction fees related to improvements visible from the public right of way. The invoices submitted thus far total $1,308.54; therefore, a 50% match equates to $654.27. Strack referenced a print copy of an email from St. Joseph resident Michael McDonald that was being distributed along with a photograph of the building front and a copy of the original application. Strack invited McDonald to present the thoughts contained in his email. McDonald stated that since he was an active member of the St. Joseph Chamber of Commerce it was difficult for him to speak to a topic that had a potentially negative impact on a local business owner. McDonald further stated that it was also important to him that the policies of the City were being administered appropriately. To those ends McDonald questioned the appropriateness of the BFA grant allocation and subsequent request for reimbursement. McDonald expressed a concern that the BFA program goals were not being met by the Russell Eyecare project. The EDA reviewed the timeline of the application, how it related to the redevelopment of the former vacant parking lot, and the extent of changes visible from the public right of way. EDA members noted that the project would not have ranked extremely high if several applications for the BFA program had been submitted, but since a limited number of applications were received, the project was viewed favorably. It was further noted the use of the program directly induced the façade project at The Local Blend. Motion Skahen, second by Heinen to approval BFA grant disbursement in the amount of $654.27 to Russell Eyecare. Motion carried 4:0. Board Member Announcements Jacobson tendered his resignation orally. The EDA asked Jacobson to reconsider his resignation to which Jacobson stated he’d continue to think about the resignation for two weeks.. Adjournment. Meeting adjourned by consensus at 4:40 PM. Cynthia Smith-Strack EDA Director EDA Minutes – December 23, 2009 5 é