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HomeMy WebLinkAbout[03] Minutes CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, July 21, 2010 Present: EDA Board Members Carolyn Yaggie- Heinen, Ken Jacobson, Al Rassier, Tom Skahen, and Dale Wick. Absent: None. Also present: City of St. Joseph Finance Director Lori Bartlett, TIF Consultant Traci Ryan, and EDA Director Cynthia Smith - Strack. Chairperson Wick called the July 21, 2010 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda. Moved by Skahen and second by Heinen to approve the agenda as presented. Motion carried 5-0. Guests: Brent Tscharkert — St. Joseph Food Co -Op Request Chairperson Wick introduced the agenda item. Strack noted she had received an email from Mr. Tscharkert late Tuesday night noting he would be unable to attend the EDA meeting today. Strack phoned an alternate contact for the Co -Op and requested thoughts regarding alternate representatives. At this time it appeared a representative from the Co -Op would not be attending the meeting. Strack noted that over the past several months EDA staff has had on -going discussion /meetings with several persons involved in an effort to establish a local food cooperative. A group of local community members have united to develop Articles of Organization for the food cooperative. Background information on the effort to establish a food cooperative was included in the EDA packet. The food cooperative concept will rely primarily on locally - produced food sources and potentially a retail outlet in the Central Business District. As such appears to be a good fit for the community in that dollars spent locally from local sources would remain within the community thereby amplifying the economic impact of the venture. In addition, if the cooperative facilitated interest in farm to school initiatives (Kennedy Community School, CSB, SJU) local processors of food items could also benefit. Other spin -off effects could include enhanced retail opportunities within the downtown and healthy food choices which could benefit public health. The Co -Op is requesting consideration from the EDA of participating in a feasibility study for a food cooperative. The feasibility study is estimated to cost $10,000. The Co -Op is requesting consideration of a $500 to $1,000 grant to complete the study. The EDA has an adequate amount within the EDA Programs line item (CIP) to meet the request. The Board may wish to consider the following: 1. Reimbursement/participation in payment of an invoice vs. up -front donation. 2. Who will function as the fiscal agent since the articles of organization have not been filed for the food cooperative. The EDA Board noted that their participation in the McComb Market Research Study (which was given to the Co -Op) should provide necessary information to the Co -Op relating to local trade area size, character and retail absorption rates. In addition, the EDA Board was concerned about the impartiality of the study and whether or not a market research firm would provide objective information or lean toward finding the intended outcome of the contracting agent. Finally, the EDA raised concerns about participating in an activity that may or may not lead to economic growth. The EDA stated that they were very supportive of the Co -Op and will consider assisting in the future if /when the group was ready to move ahead with the project. The EDA cited the state jobs bill and incentives therein as potentially available to the project. Motion Rassier, second Skahen to decline the Co -Op's request for participation in a market feasibility study. Motion carried 5:0. Approval of Minutes. Chairperson Wick introduced the minutes from the June 23, 2010 regular EDA meeting, noting the incorrect spelling of one of the meeting attendees first names. Motion by Jacobson, second by Heinen to approve the minutes from the June 23, 2010 with the noted change. Motion carried 5 -0. EDA Accounts Payable and Approval of Financial Reports. Wick introduced the topic. Accounts payable for the month totaled $2,729.50 and included monthly contract services. Wick then introduced the monthly financial reports. Motion Jacobson, second by Wick to approve the accounts payable and financial reports as presented. Motion carried 5-0. 2010 First Half TIF Disbursement Wick then introduced the requests for disbursement of the first half of 2010 TIF payments for TIF 1-4 and 2 -1. Strack stated the disbursement requests were as follows: a. TIF 1-4 — GohmanNicwest (payment to lender: Minnwest Bank): $30,711.12 (i.e. 90% of increment received). b. TIF 2 -1 — Millstream Shops /Lofts (payment to lender: First State Bank, St. Joseph: $12,719.09 (i.e. 90% of increment received). Motion Rassier, second Skahen to recommend the City Council approved disbursement requests as recited. Motion carried 5:0. State Jobs Incentive Package Opportunities Wick introduced the agenda item. Strack stated Governor signed the 2010 state stimulus /jobs creation bill into law on April 1, 2010. The bill contains a number of provisions related to the economic development tools cities use, including: expanded authority to use TIF for general economic development for one year; and, expanded authority to use excess TIF revenues for construction of new private development. The job creation tools are temporary in nature and must be used by mid -year 2011. Given a volume of projects under discussion within the City Finance Director Bartlett and Strack met with our TIF Consultant Traci Ryan regarding potential use of temporary tools to promote economic development within the City. Our discussion yielded a wide range of potential options which we'd like to discuss with the EDA. Finance Director Bartlett and TIF Consultant Ryan were in attendance. Ryan explained incentives included in the Mn. Jobs Bill that could be accessed via the EDA including: a. The establishment of compact development districts which function like redevelopment TIF districts but do not require a finding of 'substandard building' to be eligible. b. The creation of economic development districts for use by businesses not included in manufacturing, industry, or technology. EDA Minutes —July 21, 2010 2 c. The temporary authority to use excess revenue in existing TIF districts withheld for administration of the district for uses external to the district. The EDA discussed several potential projects which could be assisted through the temporary authority provided by the Mn. Jobs Bill. The EDA directed Strack to draft a press release regarding business owners potentially interested in expanding for review and distribution to local media outlets, the Chamber of Commerce, and real estate contacts. The EDA will review a list potential qualifying projects at the August EDA meeting with continued discussion thereafter. Rental Housing Working Group Chairperson Wick introduced the agenda item. Strack noted that at the May EDA meeting, the Board requested staff contact persons potentially interested in serving on a working group related to identification of options pursuant to the SCSU Economic Impact Study. A few persons have responded with a desire to serve on such a group. Discussion and comment on next step is kindly requested. The EDA Board directed Strack to draft a memo to the City Council which Wick and Rassier will present at the next meeting. The focus of the memo and presentation is to request formal authorization to form a working group to examine transition strategies related to rental housing changes Board Member Announcements Strack informed EDA Board Members that she was apparently expected at a Chamber of Commerce meeting earlier in the day but was not informed of the meeting location, time, or agenda until ten (10) minutes prior to the start of the meeting. Other meetings were already scheduled and she was unfortunately unable to attend the Chamber meeting. Strack updated the Board on a tour of the St. Joseph Meat Market earlier in the day. Adjournment. Motion Skahen, second Rassier to adjourn the EDA meeting. Meeting adjourned by consensus at 4:45 PM. Cynthia Smith - Strack EDA Director EDA Minutes — July 21, 2010 3