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HomeMy WebLinkAbout2002 Annual Report Á if!! of St. Joseph 25 College Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 CLERK! Date: January 29, 2003 AD~IINISTRATOR Judy Weyrens Memo To: Mayor Hosch Council Members MAYOR City Administrator Weyrens -1' .. ~ l Larry J. Hosch Memo From: Joa'n~ foust and Cynthia 8mith-ftra~, Municipal Development Group COUNCILORS RE: Annual Report of EDA - 2002 Bob Loso Cory Ehlert Kyle Schneider Background: Alan Rassier Enclosed is a report of annual activities of the 81. Joseph EDA for calendar year 2002. Action: Following review and comment a MOTION to accept the report is in order. 2002 ANNUAL REPORT OF THE ST. JOSEPH EDA The following activities and events occurred during the calendar year of 2002. 2002 APPOINTMENTS: The following appointments to offices were made at the February 20,2002 EDA meeting: Chair: Bruce Gohman (At-large representative, term expires 2006). Vice Chair: Larry Hosch (Mayor, term expires 2003), Treasurer: Ross Rieke (At-large representative, term expires 2007). Secretary: Bob Loso (Council representative, term expires 2002). Member at Large: Mike Deutz (term expires 2005) MEETING DATES: The St. Joseph Economic Development Authority met 14 times during the year 2002. The meeting dates were as follows: January 16, 2002 June 19, 2002 November 20, 2002 February 20, 2002 July 17 and July 25,2002 December 18, 2002 March 20, 2002 August 21, 2002 April 17, 2002 September 10 and September 18, 2002 May 15, 2002 October 16, 2002 MISSION: The mission of the EDA is to provide a professional management program which assists industrial and commercial development activities that minimize impacts to the environment, transportation system, municipal water and sewer and financial resources for the City of S1. Joseph. 2002 PROSPECTSITECHNICAL ASSISTANCE/COORDINATION The EDA members and their staff/consultants worked with a number of commercial and industrial businesses during 2002. Thirty-two (32) new business contacts were made during 2002, and fifteen (15) contacts from previous years were followed up with. Of the prospects approximately 50% were commercial/service businesses while 50% were industrial or manufacturing businesses. Following is a summary of the various contacts. Businesses have been identified with a project number to protect the confidentiality of the company, which is sometimes a concern while they explore expansion opportunities. Project 01-A: The construction of a 67,000 square foot building is underway for this company in the St. Joseph Business Park with completion expected by the end of January 2003. The DTED has approved the $42,000 grant to the City of S1. Joseph from the Minnesota Investment Fund for the establishment of a revolving loan fund. A low interest (4%, 5-year term) equipment loan will in turn be given to the company. MDG has been working with DTED, the Developer's bank and the Developer's legal council regarding the loan documents. The Council approved the required documents on November 7, 2002. The loan agreement has been executed by all parties and the original returned to DTED on November 27,2002. Project 01-B: This project involved the possible expansion and/or consolidation of several of the manufacturer's property holdings either within or outside of the City of S1. Joseph. The City met frequently met with property owners and corresponded regularly with Company representatives regarding retaining/expanding the manufacturing plant. The company has since renewed its lease on the current facility with expansion plans on hold. Proiect 01-E: This project involves the expansion of an existing service business in the community. MDG has remained in contact with the business on a monthly basis over the past year and one-half. The business has indicated they City of St. Joseph EDA 2002 Annual Report 1 have not proceeded with purchasing land at this time. They may in the future, but construction of a building is not in their financial plan for three to four years. Proiect 01-F: This project involves the locating of a fast food restaurant in the City of St. Joseph. Follow-up discussions occurred on numerous occasions throughout the year with assistance in locating potential sites and information regarding the status of individual parcels. Project 01-1: This company is considering the purchase of approximately 5 acres in St. Joseph Business Park for a 12,000 square foot facility. The company has an option on the lot but is not ready to proceed with the purchase at this time but is still very interested in expanding at the site in St. Joseph. Proiect 01-J: This developer owns a commercial subdivision in St. Joseph. MDG has provided information on the available sites to prospects over the past year. Developer will build to suit. Project 01-K: This prospect was interested in expanding a home-based business into a larger facility. MDG assisted for several months by identifying potential sites within the City. The prospect ultimately relocated to Holdingford. Project 01-L: The entity purchased an adjacent parcel in 2000 and attempted to expand their facility. The expansion request was denied. Originally this entity was interested in possibly purchasing vacant acreage and expanding their facility. MDG assisted by compiling information on possible sites, the amount of acreage needed to afford tile proposed facility and the zoning/plan approval process. The initial development has been suspended. Tile dilapidated structure on the adjacent parcel was removed in 2002. Proiect 01-M: This prospect requested information about expanding in the Buettner Business Park. MDG forwarded information on available lots, assessments, covenants, financial incentives available, zoning requirements and contact information. Follow-up correspondence occurred on several occasions. The prospect ultimately decided not to expand. Project 01-N: This commercial business is considering the construction of a 3,000 square foot office facility in St. Joseph (not in the St. Joseph Business Park). MDG followed-up numerous times throughout the year. The company had been looking at a lot in the newly annexed K&L Properties but is now open to other commercial sites. Project 01-0: This prospect was interested in acreage within Buettner Business Park for a start-up manufacturing business. MDG follow-up with the prospect numerous times throughout early 2002. The prospect has since indicated raising capital is a primary concern at this point. This project is on hold. Proiect 01-Q: The SCAEDP forwarded information on a manufacturer examining the possibility of expanding into the St. Cloud area. MDG prepared a proposal including potential sites, amenities, infrastructure, financial incentives and zoning information. After several follow-ups the City of St. Joseph was ruled out as a potential location due to its distance from the St. Cloud Airport. Project 01-S: This lead was received from a local commercial real estate agency. A letter and information regarding Buettner Business Park was forwarded to the agency. No further information was received on this lead and it has been placed in the inactive file. City of St. Joseph EPA 2002 Annual Report 2 Proiect 02-A: This lead was from a person driving through the City who had a sister who was interested in a retail development. The prospect inquired about a specific parcel along East MN. Street. The subject parcel was recently sold and the new owners did not have an interest in selling or leasing the under-utilized parcel. Project 02-B: This prospect contacted the City regarding lease space. She was looking at developing a service franchise in either Clearwater or St. Joseph. Demographic information was forwarded and a follow-up meeting scheduled. Additional information and a tour of possible sites followed. Prospect ultimately located in St. Joseph Business Center. Proiect 02-C: This company contacted the City in January, 2002 regarding possible sites for 5,000 square foot industrial building. They requested 1-2 acres. The contact has since noted he is not ready to proceed at this time but is still considering potential sites in St. Joseph for the future. MDG placed the last follow-up call to the contact on December 1, 2002. Proiect 02-D: This prospect approached EDA staff with a plan for construction of an 11,200 s.f. professional/retail office building. The prospect was seeking information on possible tenants and sharing descriptions of the facility to forward to contacts. The building was constructed in the summer of 2002 and is fully leased at this time. Project 02-E: This company contacted the City in February, 2002 regarding commercial sites % to 1 acre in size for a 5,000 square foot commercial enterprise. MDG followed up with the company contact on November 13, 2002 regarding possible sites. The contact asked to be contacted regarding a meeting after the first of the year. Proiect 02-F: This company had been interested in expanding an industrial/commercial business in St. Joseph. The company ultimately located in another area, but still holds land they purchased for the original project, in conjunction with several associates. The property owners are interested in developing the acreage. MDG met with the property owners to discuss development plans on November 13th. MDG forwarded additional information on November 22nd and followed up with e-mail correspondence on November 2ih and December 3rd and 10th. MDG is working with city staff and the city engineer regarding the extension of utilities to this area. Project 02-G: This company owns land which was recently annexed into the city. They are planning a construction project in 2003. MDG had follow-up discussions via phone and e-mail with the company on November 13th and 2ih and December 3rd. Project 02-H: This prospect contacted EDA staff because the parcel he was considering for purchase was in the joint annexation area and he wished to be annexed and serviced by public utilities. MDG assisted with annexation process and provided technical information regarding city zoning standards and potential uses for the remodeled facility. The prospect purchased the facility and remodeling is underway to create lease space for professional offices. Utilities have been extended and the parcel is now within the corporate limits. Project 02-1: This prospect was forwarded to EDA staff by the City Administrator. EDA staff assisted with technical information regarding zoning, annexation process and extension of utilities to the area. The prospect has purchased, remodeled and re-opened the facility which has been annexed and is now serviced by municipal utilities. Project 02-J: This prospect contacted the EDA staff in spring requesting information on the availability of a small amount of industrial space for the expansion of an existing business. MDG shared information regarding potential sites. MDG follow-up on numerous occasions, The prospect ultimately expanded into the former Frieler office. City ofSt. Joseph EDA 2002 Annual Report 3 Proiect 02-K: This prospect contacted the City regarding lease/purchase space for the expansion of a service facility. Demographic information, potential sites and zoning information was forwarded to the contact. Several follow- up contacts were made and continue to be made. Proiect 02-L This company contacted the city regarding potential space for the construction of a office/warehouse and office facility. They are interested in constructing a 12,800 square foot multi-tenant building in St. Joseph business park, with plans for an additional 9,600 square feet. MDG continues to be in contact with the prospect on a weekly basis. The company has a signed purchase agreement for a 3,O-acre parcel in Buettner Business Park and is expected to close on the property by the end of February 2003. Proiect 02-M: This contact was forwarded by a local developer. The contact was interested in purchasing acreage for the expansion of a home occupation. Information regarding potential sites and assistance available was forwarded to the contact person. Follow-up continued until the contact indicated the downturn in the economy had placed a severe impact on his sales and that expansion was not realistic at this time. Project 02-N: This lead was received from Stearns Electric Association who indicated the business owner may be seeking expansion space within the St. Cloud area. MDG followed up with the contact on a few occasions, offering to send information regarding the City. Contact has not responded to staff's offer of assistance. Proiect 02-0: This prospect phoned the City and inquired about property in the Buettner Business Park. The prospect indicated he was frustrated with the development process in a neighboring community where he owned an existing facility. MDG forwarded information regarding the Business Park, covenants, zoning, financial incentives and contacts. MDG followed up on numerous occasions. The contact ultimately ended up expanding at their current location. Proiect 02-P: This prospect was forwarded to the EDA staff by a City staff member. The staff member indicated the company was looking for expanded space to either lease or purchase, EDA staff contacted the prospect who indicated the expansion was talked about, but not a priority at this time. EDA staff continue to remain in contact with this prospect regarding potential lease/purchase opportunities within the city. Project 02-Q: This contact phoned the City regarding land in the Business Park. The contact is looking for approximately one acre. MDG continued to follow up with the prospect on numerous occasions. The prospect indicated he remains interested in a small industrial lot, prefers to own rather than lease and plans to review his options again during the spring/summer of 2003. Proiect 02-R: This company is interested in a site for a 7,000 square foot building. EDA staff has been interacting with this contact since the summer of 2002. A meeting with the prospect and the prospect's financial officer has ensued. Contact has continued on a regular basis. On December 10th, MDG spoke to the contact who noted he is in a "holding pattern" right now. Project 02-8 A realtor has contacted the EDA and City regarding a lot split to create a 6.43 acre parcel (northerly 6.43 acres of Lot 1, Block 2) in St. Joseph Business Park in August. The company was scheduled to close on the lot on September 27'h, but delayed closjn~ as they negotiate the purchase of another business. MDG contacted the prospect on November 20th and 2i. On December 3Td the company reported they closed on a building in 81. Cloud and have decided not to exercise their option on the 6.343 acre parcel in the business park. City ofSt. Joseph EDA 2002 Annual Report 4 Proiect 02-T: A local commercial realtor requested information on Buettner Business Park. Infonnation on the lots available, assessments, covenants, etc. was forwarded by MDG to agent. Follow-up conversations with the realtor indicated the agent's client was one year to 18 months from proceeding with any development project. Proiect 02-U: This lead was forwarded to EDA staff across the state. The lead involves the expansion of a foreign company into the upper Midwest. The company manufacturers wind generation equipment and was seeking three facilities which mayor may not be co··located. MDG prepared a proposal and submitted it to DTED prior to the deadline. MDG continues to follow-up with DTED who has indicated the company has not narrowed the list of sites at this time. Proiect 02-V This company contacted the City on September 18, 2002. MDG met with the owner and discussed sites, zoning, covenants and incentives. The company needs 3,800 to 5,000 sq. feet and is interested in leasing. MDG continues to offer the prospect assistance and update him on events that are occurring. MDG sent a letter on November 27,2002. Project 02-W: This contacted stopped at the City and met with EDA staff. The prospect indicated he was searching for a small industrial lot. MDG forwarded information regarding potential sites. MDG followed up on several occasions. Ultimately the contact decided to stay in his current location, Project 02-X This company contacted the City regarding an expansion of their current industrial facility. MDG met with the company 011 September 24, 2002 and discussed zoning requirements and toured their facility. The Council granted conditional approval of the building and site plan based on the zoning ordinance review. MDG forwarded the business owner a copy of the October 17, 2002 EDA minutes per his request on November 27, 2002. Project 02-Y This prospect contacted MDG on October 7, 2002 indicating he had met with City representatives a few years ago regarding new construction in the Buettner Business Park. Prospect met with MDG on October 10, 2002 and noted development plans are in the very initial stages at this time. He requested specific infonnation remain confidential at this time. He is seeking an industrial lot for development of 5,000 to 7000 s.f. office/warehouse facility. Prospect has not ruled out leasing. Information regarding incubator facility was forwarded to the developer. MDG mailed a follow-up letter on November 27,2002. Project 02-Z This company contacted the MDG regarding relocation of their current commercial facility on October 31, 2002. MDG followed up on November 1, 2003 and the prospect inquired about commercial spaces either in the downtown or highway areas. Prospect was initially interested in leasing, now preferring to own. Discussed several potential new develo~ment and redevelopment sites. MDG again followed up with additional information on November 3rd, 5th, 6th, 11t , 20th and 27th and again with the principal contact on December 10th. Proiect 02-AA This prospect contacted the MDG on November 4, 2002 regarding industrial lots within the Buettner Business Park. MDG noted available parcels within the business and met with the prospect on November 6th. Prospect and MDG discussed lot availability, minimum lot size, price per acre, assessments, covenants and zoning standards. MDG followed up by phone with contact on November 2ih and met with him and Mr. Buettner regarding possible sites and associated costs for a 3-acre site on December 3, 2002. The prospect has entered a purchase agreement with Mr. Buettner, closing is set for February 3, 2003. Project 02-BB This prospect contacted MDG on November 12, 2002 regarding available commercial sites for lease for a small retail business. MDG followed up on November 13, 2002 and November 27, 2002 and December 10, 2002. City of S1. Joseph EDA 2002 Annual Report 5 Project 02-CC This prospect contacted MDG on November 22, 2002 regarding available acreage within the Buettner Business Park. MDG forwarded information on the park and available space to purchase and possible space to lease. MDG followed up with phone calls on November 2ih and December 10th. Prospect would like to meet the second week of January to discuss options. Proiect 02-DD This developer contacted the City on December 9th regarding available commercial sites. MDG met with the developer on December 10th and provided information on possible sites and contacts. Proiect 02-EE This developer met with MDG on December 10th regarding a possible 6,000 square foot commercial building. Information relating to zoning requirements and commercial sites were discussed. The project is proposed for 2003. Project 02-FF: This prospect phoned the City and spoke to EDA staff regarding a specific lot in the Buettner Business Park. MDG prepared a packet of information including: maps, assessment information, covenants, zoning standards, demographic information and economic development profile and financial incentives available. The contact stopped by City Hall to pick up the information. BUILDING PERMITS: 1997 - 2002 Following is a five year comparison of building permits let for commercial and industrial projects in the City of St. Joseph: Year Project Permit Amt. 1997 Beeline Marine $180,000.00 1997 Carwash $200,000.00 1997 Schroeder Sports $385,000.00 1997 Restaurant $130,000.00 Subtotal $895,000.00 1998 Sunset Mfging $250,000.00 1998 MCO Addition $300,000.00 1998 Borgert Products $725,000.00 1998 Kittridge Truck Storage $80,000.00 1998 Tamarack Addition $51,000.00 1998 Caseys $500,000.00 Subtotal $1,906,000.00 1999 Comm/rental $175,000.00 1999 Storage $60,000.00 1999 Bank $1,200,000.00 Subtotal $1,435,000.00 2000 Vicwest Remodel $21,000.00 2000 Vet Clinci $270,000.00 2000 Gas & Bait Expansion $16,500.00 2000 Lemmer Commercial $54,000.00 Subtotal $361,500.00 2001 Spring Green $143,000.00 2001 Autobody 2000 $280,000.00 2001 Ministorage $90,000,00 City of81. Joseph EOA 2002 Annual Report 6 2001 Sunset Mfging $80,000.00 Subtotal $593,000.00 Year Project Permit Amt. 2002 Essilor $20,000.00 2002 Scherer Trucking $26,530.00 2002 Tanner Systems $350,000.00 2002 Bill Nelson $650,000.00 2002 Vicwest $2,500,000.00 2002 American Manufacturing $210,000.00 2002 81. Joseph Business Ctr. $148,000.00 2002 Knight Builders $225,000.00 2002 Borgert Products $99,000.00 2002 Deutz $350,000.00 2002 Deutz $108,900.00 Subtotal $4,687,430.00 TOTAL $9,877,930.00 It is noted that in 2002 building permit values indicated that 40.3% of new construction values were for commercial/industrial permits while 59.7percent of new construction value was residential in nature. There was $4,687,430 in new commercial/industrial construction and $6,954,940 in new residential construction. DIVERSIFICATION OF THE TAX BASE: The following summary and chart indicate the progress toward the EDA's goal of diversifying the tax base: City of St. Joseph - Historical Commercial & Industrial Construction Total $8,066,930.00 $156,838.60 $277,605.98 1997 $895,000.00 17,150 30,358.07 1998 $1,906,000.00 37,370 66,142.31 1999 $1,435,000.00 27,950 49,471.31 2000 $361,500.00 6,480 11,474.89 2001 $593,000.00 11,110 19,668.81 2002 $4,687,430.00 92,999 164,590.75 Total $9,877,930.00 $193,058.60 $341,706.14 Historical Annual New Commercial/Industrial Construction - St. Joseph $10,000,000.00 -,-- - .--.-.-. ----------- $9,000,000.00 - $8,000,000.00 .-7"'- $7,000,000.00 $6,000,000.00 EITotal Market ¡S,ooo,ooo.oo " 4,000,000.00 - Value $3,000,000.00 - _ ~ ~~:ggg:ggg:gg~~ I r= .' j E4 ~ $0.00 - 'C' ~~ - I IEJ I ~ ~ g,OJ R:>" ~ "Qj ,,<?3 'l,.C5 .<...(§J City of 81. Joseph EDA 2002 Annual Report 7 Estimated New Annual Taxes from Com m ercial/ln d ustrial C onstru ction 200,000.00 - -- --. -~-- -- --~ -~--- --, , I ..... 150,000.00 .. c:: I ::J I ¡¡ Estim ated Taxes 0 E 100,000.00 lilY ear « - , w 50,000.00 ~ " ;; - 1 2 3 4 5 6 Year ADDITIONAL PROJECTS: The St. Joseph EDA actively pursued other projects during 2002. Marketina Materials The EDA updated print marketing materials in the Spring of 2002. Updated inserts for the Community Brochure were printed with funding participation by Xcel Energy. The EDA also assembled a packet of materials to distribute to prospects, commercial realtors and for insertion into proposals. The packet of materials was mailed to several area commercial realtors. The EDA has assembled infonnation about the City, EDA, area transportation system, municipal infrastructure, financial incentives, area healthcare system and available commercial/industrial properties. The infonnation has been posted on the city's web site at www.cityofstioscph.com. Revolvina Loan Fund Establishment and MCCF Participation One of the goals of the EDA since its inception has been to fonn a local revolving loan fund to assist local projects with below market rate loans. In conjunction with the St. Joe Development, LLC project, the City on behalf of the developer submitted an application to the Minnesota Investment Fund. The MIF program grants funds to the City who, in turn, loans the proceeds to the Developer at a below market rate. The Developer then makes principal and interest payments to the City. Under 2002 guidelines the City is able to retain the full grant ($42,000) for establishment of a local revolving loan fund. The City of 81. Joseph, upon EDA recommendation, has also opted to participate in the Minnesota Community Capital Foundation (MCCF), The MCCF is a non-profit, self-governed organization that has been fonned for the purpose of developing, funding and operating a flexible self-sustaining development loan fund as a new development financing resource. One of the primary goals of the MCCF is to provide local communities with significantly greater lending capacity and a more flexible, user-friendly development financing resource than most economic development loan programs. Member benefits include: . The capacity to originate loans of up to ten times the amount they contributed to the fund (e.g. if the City of 81. Joseph contributes $25,000 to the fund, they can issue a loan of up to $250,000). City of St. Joseph EDA 2002 Annual Report 8 · The City may issue multiple loans. Since a loan will not be issued unless it can be immediately sold into the secondary market the fund is immediately recapitalized. This means the City can continue to issue loans through the MCCF (e.g. in theory could issue one $250,000 loan today, one $250,000 loan tomorrow and another the following day and so on with no topside limit). The guaranteed second market for the first two years the fund is in existence is the Community Re-investment Program. The establishment of the local revolving loan fund and MCCF participation add to other financial incentives offered by the City. COMMISSION PARTICIPATION: 81. Joseph EDA representatives participated in the Stearns County Economic Development Partnership. In addition to regular economic development activities the EDA also participated in: ¡Cl The 2002 Comprehensive Plan Update; n Updating of commercial & industrial zoning classification requirements; n Updating of the covenants in effect for the Buettner Business Park; n Establishment of Tax Increment Financing District 1-4; and, n Review of development plans as requested by the City Council and as authorized by the Buettner Business Park covenants. GOALS FOR 2003: In 2002 the EDA reviewed goals as a part of the development of the Comprehensive Plan. Following are Goals and Objectives for Community Development. The first set of goals involve participation directly by the EDA (I.e. the EDA's Work Plan), the remaining goals apply to community development in general but do not require specific action by the EDA. EDA Work Plan: Recommendations relatina to technoloav: 1. Research the establishment of a low interest loan through state and regional sources or local tax levies to support commercial/industrial technology upgrades. » Implementation: St. Joseph Economic Development Authority and City Council. 2. The Economic Development Authority should work in cooperation with telecommunication companies to extend DSL or T-1 lines north of County Road 75 to improve telecommunication services in the commercial and industrial business parks in those areas. » Implementation: 81. Joseph Economic Development Authority. Recommendations for Downtown Commercial (Re) Developmen.t 1. Areas for potential Downtown expansion or development should be identified with respect to the acquisition and rehabilitation of substandard properties or the preservation of structures for rehabilitation. » Implementation: St. Joseph Economic Development Authority. 2. Ongoing maintenance and renovation of downtown buildings is needed to ensure the physical conditions are maintained or improved. The City should gauge business interest in participating in a commercial rehabilitation program and if strong interest exists, consider the application for funding to the Small Cities Development Program. City of St. Joseph EDA 2002 Aruma! Report 9 Á Cif!! of St. Joseph 25 College Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363,7201 Fax: 363-0342 CLERK! Date: January 29, 2003 ADMINISTRATOR Judy Weyrens Memo To: Mayor Hosch Council Members MAYOR City Administrator Weyrens Larry J. Hosch Memo From: J 5;"'1 IF d C . S . h ~t L~ M .. I D I t G oanne oust an ynthl8 mlt - rac, unlClpa eve opmen roup COUNCILORS RE: Annual Report of EDA - 2002 Bob Loso Cory Ehlert Ky1e Schneider Background: Alan Rassier Enclosed is a report of annual activities of the St. Joseph EDA for calendar year 2002. Action: Following review and comment a MOTION to accept the report is in order. 2002 ANNUAL REPORT OF THE ST. JOSEPH EDA The following activities and events occurred during the calendar year of 2002. 2002 APPOINTMENTS: The following appointments to offices were made at the February 20, 2002 EDA meeting: Chair: Bruce Gohman (At-large representative, term expires 2006). Vice Chair: Larry Hosch (Mayor, term expires 2003). Treasurer: Ross Rieke (At-large representative, term expires 2007). Secretary: Bob Loso (Council representative, term expires 2002). Member at Large: Mike Deutz (term expires 2005) MEETING DATES: The St. Joseph Economic Development Authority met 14 times during the year 2002. The meeting dates were as follows: January 16, 2002 June 19, 2002 November 20, 2002 February 20, 2002 July 17 and July 25, 2002 December 18, 2002 March 20, 2002 August 21, 2002 April 17, 2002 September 10 and September 18, 2002 May 15, 2002 October 16, 2002 MISSION: The mission of the EDA is to provide a professional management program which assists industrial and commercial development activities that minimize impacts to the environment, transportation system, municipal water and sewer and financial resources for the City of St. Joseph. 2002 PROSPECTSITECHNICAL ASSIST ANCE/COORDINA TION The EDA members and their staff/consultants worked with a number of commercial and industrial businesses during 2002. Thirty-two (32) new business contacts were made during 2002, and fifteen (15) contacts from previous years were followed up with. Of the prospects approximately 50% were commercial/service businesses while 50% were industrial or manufacturing businesses. Following is a summary of the various contacts. Businesses have been identified with a project number to protect the confidentiality of the company, which is sometimes a concern while they explore expansion opportunities. Project 01-A: The construction of a 67,000 square foot building is underway for this company in the St. Joseph Business Park with completion expected by the end of January 2003. The DTED has approved the $42,000 grant to the City of St. Joseph from the Minnesota Investment Fund for the establishment of a revolving loan fund. A low interest (4%, 5-year term) equipment loan will in turn be given to the company. MDG has been working with DTED, the Developer's bank and the Developer's legal council regarding the loan documents. The Council approved the required documents on November 7, 2002. The loan agreement has been executed by all parties and the original returned to DTED on November 27,2002. Project 01-B: This project involved the possible expansion and/or consolidation of several of the manufacturer's property holdings either within or outside of the City of St. Joseph. The City met frequently met with property owners and corresponded regularly with Company representatives regarding retaining/expanding the manufacturing plant. The company has since renewed its lease on the current facility with expansion plans on hold. Proiect 01-E: This project involves the expansion of an existing service business in the community. MDG has remained in contact with the business on a monthly basis over the past year and one-half. The business has indicated they City ofSt. Joseph EDA 2002 Annual Report 1 have not proceeded with purchasing land at this time. They may in the future, but construction of a building is not in their financial plan for three to four years, Project 01-F: This project involves the locating of a fast food restaurant in the City of St. Joseph. Follow-up discussions occurred on numerous occasions throughout the year with assistance in locating potential sites and information regarding the status of individual parcels. Proiect 01-1: This company is considering the purchase of approximately 5 acres in St. Joseph Business Park for a 12,000 square foot facility. The company has an option on the lot but is not ready to proceed with the purchase at this time but is still very interested in expanding at the site in St. Joseph. Project 01-J: This developer owns a commercial subdivision in St. Joseph. MDG has provided information on the available sites to prospects over the past year. Developer will build to suit. Proiect 01-K: This prospect was interested in expanding a home-based business into a larger facility. MDG assisted for several months by identifying potential sites within the City. The prospect ultimately relocated to Holdingford. Proiect 01-L: The entity purchased an adjacent parcel in 2000 and attempted to expand their facility. The expansion request was denied. Originally this entity was interested in possibly purchasing vacant acreage and expanding their facility. MDG assisted by compiling information on possible sites, the amount of acreage needed to afford the proposed facility and the zoning/plan approval process. The jnitial development has been suspended. The dilapidated structure on the adjacent parcel was removed in 2002. Proiect 01-M: This prospect requested information about expanding in the Buettner Business Park. MDG forwarded information on available lots, assessments, covenants, financial incentives available, zoning requirements and contact information. Follow-up correspondence occurred on several occasions. The prospect ultimately decided not to expand. Proiect 01-N: This commercial business is considering the construction of a 3,000 square foot office facility in St. Joseph (not in the St. Joseph Business Park). MDG followed-up numerous times throughout the year. The company had been looking at a lot in the newly annexed K&L Properties but is now open to other commercial sites. Project 01-0: This prospect was interested in acreage within Buettner Business Park for a start-up manufacturing business. MDG follow-up with the prospect numerous times throughout early 2002. The prospect has since indicated raising capital is a primary concern at this point. This project is on hold. Proiect 01-Q: The SCAEDP forwarded information on a manufacturer examining the possibility of expanding into the St. Cloud area. MDG prepared a proposal including potential sites, amenities, infrastructure, financial incentives and zoning information. After several follow-ups the City of St. Joseph was ruled out as a potential location due to its distance from the St. Cloud Airport. Proiect 01-8: This lead was received from a local commercial real estate agency. A letter and information regarding Buettner Business Park was forwarded to the agency. No further information was received on this lead and it has been placed in the inactive file. City ofSt. Joseph EDA 2002 Annual Report 2 Project 02-A: This lead was from a person driving through the City who had a sister who was interested in a retail development. The prospect inquired about a specific parcel along East MN. Street. The subject parcel was recently sold and the new owners did not have an interest in selling or leasing the under-utilized parcel. Proiect 02-B: This prospect contacted the City regarding lease space. She was looking at developing a service franchise in either Clearwater or St. Joseph. Demographic information was forwarded and a follow-up meeting scheduled. Additional information and a tour of possible sites followed. Prospect ultimately located in St. Joseph Business Center. Proiect 02-C: This company contacted the City in January, 2002 regarding possible sites for 5,000 square foot industrial building. They requested 1-2 acres. The contact has since noted he is not ready to proceed at this time but is still considering potential sites in St. Joseph for the future. MDG placed the last follow-up call to the contact on December 1, 2002. Proiect 02-D: This prospect approached EDA staff with a plan for construction of an 11,200 s.f. professional/retail office building. The prospect was seeking information on possible tenants and sharing descriptions of the facility to forward to contacts. The building was constructed in the summer of 2002 and is fully leased at this time. Proiect 02-E: This company contacted the City in February, 2002 regarding commercial sites % to 1 acre in size for a 5,000 square foot commercial enterprise. MDG followed up with the company contact on November 13, 2002 regarding possible sites. The contact asked to be contacted regarding a meeting after the first of the year. Proiect 02-F: This company had been interested in expanding an industrial/commercial business in St. Joseph. The company ultimately located in another area, but still holds land they purchased for the original project, in conjunction with several associates. The property owners are interested in developing the acreage. MDG met with the property owners to discuss development plans on November 13th. MDG forwarded additional information on November 22nd and followed up with e-mail correspondence on November 27'h and December 3fd and 10th, MDG is working with city staff and the city engineer regarding the extension of utilities to this area. Project 02-G: This company owns land which was recently annexed into the city. They are planning a construction project in 2003. MDG had follow-up discussions via phone and e-mail with the company on November 13th and 27'h and December 3rd. Project 02-H: This prospect contacted EDA staff because the parcel he was considering for purchase was in the joint annexation area and he wished to be annexed and serviced by public utilities. MDG assisted with annexation process and provided technical information regarding city zoning standards and potential uses for the remodeled facility. The prospect purchased the facility and remodeling is underway to create lease space for professional offices. Utilities have been extended and the parcel is now within the corporate limits. Proiect 02-1: This prospect was forwarded to EDA staff by the City Administrator. EDA staff assisted with technical information regarding zoning, annexation process and extension of utilities to the area. The prospect has purchased, remodeled and re-opened the facility which has been annexed and is now serviced by municipal utilities, Project 02-J: This prospect contacted the EDA staff in spring requesting information on the availability of a small amount of industrial space for the expansion of an existing business. MDG shared information regarding potential sites. MDG follow-up on numerous occasions. The prospect ultimately expanded into the former Frieler office. City ofSt. Joseph EDA 2002 Annual Report 3 Proiect 02-K: This prospect contacted the City regarding lease/purchase space for the expansion of a service facility. Demographic information, potential sites and zoning information was forwarded to the contact. Several follow- up contacts were made and continue to be made. Project 02-L This company contacted the city regarding potential space for the construction of a office/warehouse and office facility. They are interested in constructing a 12,800 square foot multi-tenant building in St. Joseph business park, with plans for an additional 9,600 square feet. MDG continues to be in contact with the prospect on a weekly basis. The company has a signed purchase agreement for a 3.0-acre parcel in Buettner Business Park and is expected to close on the property by the end of February 2003. Project 02-M: This contact was forwarded by a local developer. The contact was interested in purchasing acreage for the expansion of a home occupation. Information regarding potential sites and assistance available was forwarded to the contact person. Follow-up continued until the contact indicated the downturn in the economy had placed a severe impact on his sales and that expansion was not realistic at this time. Proiect 02-N: This lead was received from Stearns Electric Association who indicated the business owner may be seeking expansion space within the St. Cloud area. MDG followed up with the contact on a few occasions, offering to send information regarding the City. Contact has not responded to staff's offer of assistance. Project 02-0: This prospect phoned the City and inquired about property in the Buettner Business Park. The prospect indicated he was frustrated with the development process in a neighboring community where he owned an existing facility. MDG forwarded information regarding the Business Park, covenants, zoning, financial incentives and contacts. MDG followed up on numerous occasions. The contact ultimately ended up expanding at their current location. Proiect 02-P: This prospect was forwarded to the EDA staff by a City staff member. The staff member indicated the company was looking for expanded space to either lease or purchase. EDA staff contacted the prospect who indicated the expansion was talked about, but not a priority at this time. EDA staff continue to remain in contact with tl,is prospect regarding potential lease/purchase opportunities within the city. Proiect 02-Q: This contact phoned the City regarding land in the Business Park. The contact is looking for approximately one acre. MDG continued to follow up with the prospect on numerous occasions. The prospect indicated he remains interested in a small industrial lot, prefers to own rather than lease and plans to review his options again during the spring/summer of 2003. Proiect 02-R: This company is interested in a site for a 7,000 square foot building. EDA staff has been interacting with this contact since the summer of 2002. A meeting with the prospect and the prospect's financial officer has ensued. Contact has continued on a regular basis. On December 10th, MDG spoke to the contact who noted he is in a "holding pattern" right now. Project 02-S A realtor has contacted the EDA and City regarding a lot split to create a 6.43 acre parcel (northerly 6.43 acres of Lot 1, Block 2) in St. Joseph Business Park in August. The company was scheduled to close on the lot on September 2ih, but delayed closin~ as tt,ey negotiate the purchase of another business. MDG contacted the prospect on November 20th and 2i. On December 3rd the company reported they closed on a building in St. Cloud and have decided not to exercise their option on the 6.343 acre parcel in the business park. Cìty of St. Joseph EDA 2002 Annual Report 4 Proiect 02- T: A local commercial realtor requested information on Buettner Business Park. Information on the lots available, assessments, covenants, etc. was forwarded by MDG to agent. Follow-up conversations with the realtor indicated the agent's client was one year to 18 months from proceeding with any development project. Proiect 02-U: This lead was forwarded to EDA staff across the state. The lead involves the expansion of a foreign company into the upper Midwest. The company manufacturers wind generation equipment and was seeking three facilities which mayor may not be co-located. MDG prepared a proposal and submitted it to DTED prior to the deadline. MDG continues to follow-up with DTED who has indicated the company has not narrowed the list of sites at this time. Project 02-V This company contacted the City on September 18, 2002. MDG met with the owner and discussed sites, zoning, covenants and incentives. The company needs 3,800 to 5,000 sq. feet and is interested in leasing. MDG continues to offer the prospect assistance and update him on events that are occurring. MDG sent a letter on November 27, 2002. Project 02-W: This contacted stopped at the City and met with EDA staff. The prospect indicated he was searching for a small industrial lot. MDG forwarded information regarding potential sites. MDG followed up on several occasions. Ultimately the contact decided to stay in his current location. Project 02-X This company contacted the City regarding an expansion of their current industrial facility. MDG met with the company on September 24, 2002 and discussed zoning requirements and toured their facility. The Council granted conditional approval of the building and site plan based on the zoning ordinance review. MDG forwarded the business owner a copy of the October 17, 2002 EDA minutes per his request on November 27, 2002. Proiect 02-Y This prospect contacted MDG on October 7, 2002 indicating he had met with City representatives a few years ago regarding new construction in the Buettner Business Park. Prospect met with MDG on October 10, 2002 and noted development plans are in the very initial stages at this time. He requested specific information remain confidential at this time. He is seeking an industrial lot for development of 5,000 to 7000 s.f. office/warehouse facility. Prospect has not ruled out leasing. Information regarding incubator facility was forwarded to the developer. MDG mailed a follow-up letter on November 27,2002. Project 02-2 This company contacted the MDG regarding relocation of their current commercial facility on October 31, 2002. MDG followed up on November 1, 2003 and the prospect inquired about commercîal spaces either in the downtown or highway areas. Prospect was initially interested in leasing, now preferring to own. Discussed several potential new develorment and redevelopment sites. MDG again followed up with additional infon-nation on November 3rd, 51h, 61h, 111, 201h and 27th and again with the principal contact on December 10th. Proiect 02-AA This prospect contacted the MDG on November 4, 2002 regarding industrial lots within the Buettner Business Park. MDG noted available parcels within the business and met with the prospect on November 6th. Prospect and MDG discussed lot availability, minimum lot size, price per acre, assessments, covenants and zoning standards. MDG followed up by phone with contact on November 2ih and met with him and Mr. Buettner regarding possible sites and associated costs for a 3-acre site on December 3, 2002. The prospect has entered a purchase agreement with Mr. Buettner, closing is set for February 3, 2003. Project 02-BB This prospect contacted MDG on November 12, 2002 regarding available commercial sites for lease for a small retail business. MDG followed up on November 13, 2002 and November 27,2002 and December 10, 2002. City of 81. Joseph EDA 2002 Annual Report 5 Proíect 02-CC This prospect contacted MDG on November 22, 2002 regarding available acreage within the Buettner Business Park. MDG forwarded information on the park and available space to purchase and possible space to lease. MDG followed up with phone calls on November 2ih and December 10th. Prospect would like to meet the second week of January to discuss options. Project 02-DD This developer contacted the City on December 9th regarding available commercial sites. MDG met with the developer 011 December 10th and provided information on possible sites and contacts. Project 02-EE This developer met with MDG on December 10th regarding a possible 6,000 square foot commercial building. Information relating to zoning requirements and commercial sites were discussed. The project is proposed for 2003. Proiect 02-FF: This prospect phoned the City and spoke to EOA staff regarding a specific lot in the Buettner Business Park. MDG prepared a packet of information including: maps, assessment information, covenants, zoning standards, demographic information and economic development profile and financial incentives available. The contact stopped by City Hall to pick up the information. BUILDING PERMITS: 1997 - 2002 Following is a five year comparison of building permits let for commercial and industrial projects in the City of St. Joseph: Year Project Permit Amt. 1997 Beeline Marine $180,000.00 1997 Carwash $200,000.00 1997 Schroeder Sports $385,000.00 1997 Restaurant $130,000.00 Subtotal $895,000.00 1998 Sunset Mfging $250,000.00 1998 MCO Addition $300,000.00 1998 Borgert Products $725,000.00 1998 Kittridge Truck Storage $80,000.00 1998 Tamarack Addition $51,000.00 1998 Caseys $500,000.00 Subtotal $1,906,000.00 1999 Comm/rental $175,000.00 1999 Storage $60,000.00 1999 Bank $1,200,000.00 Subtotal $1,435,000.00 2000 Vicwest Remodel $21,000.00 2000 Vet Clinci $270,000.00 2000 Gas & Bait Expansion $16,500.00 2000 Lemmer Commercial $54,000.00 Subtotal $361,500.00 2001 Spring Green $143,000.00 2001 Autobody 2000 $280,000.00 2001 Ministorage $90,000.00 City of St. Joseph EDA 2002 Annual Report 6 2001 Sunset Mfging $80,000.00 Subtotal $593,000.00 Year Project Permit Amt. 2002 Essilor $20,000.00 2002 Scherer Trucking $26,530.00 2002 Tanner Systems $350,000.00 2002 Bill Nelson $650,000.00 2002 Vicwest $2,500,000.00 2002 American Manufacturing $210,000.00 2002 81. Joseph Business Ctr. $148,000.00 2002 Knight Builders $225,000.00 2002 Borgert Products $99,000.00 2002 Deutz $350,000.00 2002 Deutz $108,900.00 Subtotal $4,687,430.00 TOTAL $9,877,930.00 It is noted that in 2002 building pennit values indicated that 40.3% of new construction values were for commercial/industrial pennits while 59.7percent of new construction value was residential in nature. There was $4,687,430 in new commercial/industrial construction and $6,954,940 in new residential construction. DIVERSIFICATION OF THE TAX BASE: The following summary and chart indicate the progress toward the EDA's goal of diversifying the tax base: City of St. Joseph - Historical Commercial & Industrial Construction Total $8,066,930.00 $156,838.60 $277,605.98 1997 $895,000.00 17,150 30,358.07 1998 $1,906,000.00 37,370 66,142.31 1999 $1,435,000.00 27,950 49,471.31 2000 $361,500.00 6,480 11,474.89 2001 $593,000.00 11,110 19,668.81 2002 $4,687,430.00 92,999 164,590.75 Total $9,877,930.00 $193,058.60 $341,706.14 Historical Annual New Commercialllndustrial Construction - St. Jose ph $10,000,000.00 --.- - - $9,000,000.00 $8,000,000.00 $7,000,000.00 - $6,000,000.00 []Total Market *5,000,000.00 4,000,000.00 Value $3,000,000.00 $2,000,000.00 $1,000,000.00 c~~~ $0.00 - " y ---,-NL ~ P.J0.> S;)" ~ ,,OJ ,,OJ fl.,\:S .<..ðJ City of 81. Joseph EDA 2002 Annual Report 7 Estimated New Annual Taxes from C omm erciallln d ustrial Construction 200,000.00 ~ --. --. ---- --O------~-l +' 150,000.00 -- '" - c: :J ,. c.¡¡ Estim ated Taxes 0 E 100,000.00 -- ~ - @ lilY ear « iÌ[';~ . tit 50,000.00 -'-' <,;; - i 0 --:- " . '" . " " - " - - _ 'f ~ " , " ;~ 1 2 3 4 5 6 Year ADDITIONAL PROJECTS: The St. Joseph EDA actively pursued other projects during 2002. Marketina Materials The EDA updated print marketing materials in the Spring of 2002. Updated inserts for the Community Brochure were printed with funding participation by Xcel Energy. The EDA also assembled a packet of materials to distribute to prospects, commercial realtors and for insertion into proposals. The packet of materials was mailed to several area commercial realtors. The EDA has assembled information about the City, EDA, area transportation system, municipal infrastructure, financial incentives, area healthcare system and available commercial/industrial properties. The information has been posted on the city's web site at www.citYof~iosq{h.com. Revolvina Loan Fund Establishment and MCCF Participation One of the goals of the EDA since its inception has been to form a local revolving loan fund to assist local projects with below market rate loans. In conjunction with the St. Joe Development, LLC project, the City on behalf of the developer submitted an application to the Minnesota Investment Fund. The MIF program grants funds to the City who, in turn, loans the proceeds to the Developer at a below market rate. The Developer then makes principal and interest payments to the City. Under 2002 guidelines the City is able to retain the full grant ($42,000) for establishment of a local revolving loan fund. The City of St. Joseph, upon EDA recommendation, has also opted to participate in the Minnesota Community Capital Foundation (MCCF). The MCCF is a non-profit, self-governed organization that has been formed for the purpose of developing, funding and operating a flexible self-sustaining development loan fund as a new development financing resource. One of the primary goals of the MCCF is to provide local communities with significantly greater lending capacity and a more flexible, user-friendly development financing resource than most economic development loan programs. Member benefits include: . The capacity to originate loans of up to ten times the amount they contributed to the fund (e.g. if the City of St. Joseph contributes $25,000 to the fund, they can issue a loan of up to $250,000). City of 81. Joseph EDA 2002 Annual Report 8 · The City may issue multiple loans. Since a loan will not be issued unless it can be immediately sold into the secondary market the fund is immediately recapitalized. This means the City can continue to issue loans through the MCCF (e.g. in theory could issue one $250,000 loan today, one $250,000 loan tomorrow and another the following day and so on with no topside limit). The guaranteed second market for the first two years the fund is in existence is the Community Re-investment Program. The establishment of the local revolving loan fund and MCCF participation add to other financial incentives offered by the City. COMMISSION PARTICIPATION: 81. Joseph EDA representatives participated in the Stearns County Economic Development Partnership. In addition to regular economic development activities the EDA also participated in: n The 2002 Comprehensive Plan Update; ¡:'j Updating of commercial & industrial zoning classification requirements; hJ Updating of the covenants in effect for the Buettner Business Park; ~j Establishment of Tax Increment Financing District 1-4; and, "1 Review of development plans as requested by the City Council and as authorized by the Buettner Business Park covenants. GOALS FOR 2003: In 2002 the EDA reviewed goals as a part of the development of the Comprehensive Plan. Following are Goals and Objectives for Community Development. The first set of goals involve participation directly by the EDA (Le. the EDA's Work Plan), the remaining goals apply to community development in general but do not require specific action by the EDA. EDA Work Plan: Recommendations relatinQ to technoloQY: 1. Research the establishment of a low interest loan through state and regional sources or local tax levies to support commercial/industrial technology upgrades. ~ Implementation: S1. Joseph Economic Development Authority and City Council. 2. The Economic Development Authority should work in cooperation with telecommunication companies to extend DSL or T-1 lines north of County Road 75 to improve telecommunication services in the commercial and industrial business parks in those areas. ~ Implementation: S1. Joseph Economic Development Authority. Recommendations for Downtown Commercial (Re) Development: 1. Areas for potential Downtown expansion or development should be identified with respect to the acquisition and rehabilitation of substandard properties or the preservation of structures for rehabilitation. ~ Implementation: 81. Joseph Economic Development Authority. 2. Ongoing maintenance and renovation of downtown buildings is needed to ensure the physical conditions are maintained or improved. The City should gauge business interest in participating in a commercial rehabilitation program and if strong interest exists, consider the application for funding to the Small Cities Development Program. City of St. Joseph EDA 2002 Annual Report 9 );> Implementation: The S1. Joseph Economic Development Authority and City Council. Recommendations for Hiqhway Commercial Developments: 1. Revisions/additions of certain development standards should be considered to insure the quality of development desired by the community including minimum lot sizes, lot coverage, landscaping standards, building construction, lighting, screening and outdoor storage. );> Implementation: Planning Commission with input from the Chamber of Commerce, Economic Development Authority with final action by the City Council. 2. Efforts to achieve commercial redevelopment should be encouraged and promoted. );> Implementation: Economic Development Authority. Recommendations for Industrial Development: 1. Existing industrial uses should be retained and new industrial development should be encouraged to locate in existing industrial parks and industrially zoned areas. Future industrial areas should be located adjacent to current industrial zoned land, provided it does not negatively impact or encroach upon wetlands in the area. );> Implementation: Economic Development Authority and City Council. 2. The Economic Development Authority should promote industrial developments that maximize the return on city investments in public facilities and services, expand the tax base, provide quality employment opportunities and compliment existing services. );> Implementation: Economic Development Authority. 3. Industrial areas should be adequately screened and appropriately landscaped and designed according to City standards. For both existing and new industrial development, regulations should be maintained with criteria regarding: building appearance and materials; screening of outside storage areas; screening of off-street parking facilities; use of landscaping; and proper handling of environmentally sensitive areas. );> Implementation: Planning Commission, Economic Development Authority and City Council. 4. Continued expansion of the City's industrial and commercial tax base should be encouraged to assist in paying for needed services and in reducing tax impact on housing costs. Increasing the ratio of commercial/industrial assessed market value to residential assessed market value from historical 15%/85% ratios may be fostered through zoning of properties and economic development programs. );> Implementation: Planning Commission, Economic Development Authority and City Council. 5. A study should be conducted to identify future industrial park property and methods of developing the industrial park prior to the full occupancy of existing industrial parks. );> Implementation: St. Joseph Economic Development Authority and City Council 6. Industrial activities complementary to existing uses should be identified and the development of such industries should be promoted and facilitated. ~ Implementation: Economic Development Authority and City Council City ofSt. Joseph EDA 2002 Annual Report 10 7. Alternative fiscal incentives should be investigated to attract new desired industries to St. Joseph. }- Implementation: Economic Development Authority and City Council 8. The Economic Development Authority should work with developers of new industrial parks to develop covenants which provide for aesthetically pleasing and quality developments. }- Implementation: Economic Development Authority. Overall: The City should focus on providing a balance of industrial growl!7 to support the community's tax base and to provide jobs, commercial growth to provide services to employees and residents and housing development to provide housing opportunities for all. Community Development Goals: Recommendations relating to the presence of the college and university in the area: 1. City leaders and College administrators and student representatives shouJd continue to meet on a monthly basis to discuss activities at the city and college level, impacts on housing and integration of students with homestead property residents. );> Implementation: Mayor, City Administrator, College of St. Benedict, St. John's University. 2. The City and College of St. Benedict Sllould explore cooperative ventures to provide cultural activities for the community. );> Implementation: College of St. Benedict, City's Community Education. 3. Retail and service businesses should strive to serve students and employees at the college by sponsoring a "Welcome Back to College Promotion" or similar event to draw student to local services. ». Implementation: Chamber of Commerce, College of 81. Benedict and St. John's University. Recommendations relatinq to historic preservation: 1. The City Council should appoint a community to identify the image desired for the downtown commercial district and the desirability of adopting design standards which address items such as the exposure of original architectural features, colors, awnings, construction materials and historic preservation. If determined design standards are desirable, it is recommended the City assist through the establishment of a low interest revolving loan fund to financially encourage and support such changes. Application for a commercial rehabilitation small cities development grant may assist in the fund development. );> Implementation: City Council to appoint a committee. Recommendations relatinq to technoloqy: 1. Research the establishment of a low interest loan through state and regional sources or local tax levies to support commercial/industrial technology upgrades. );> Implementation: St. Joseph Economic Development Authority and City Council. 2. The Economic Development Authority should work in cooperation with telecommunication companies to extend DSL or T-1 lines north of County Road 75 to improve telecommunication services in the commercial and industrial business parks in those areas. City of St. Joseph EDA 2002 Annual Report 11 );> Implementation: S1. Joseph Economic Development Authority. Recommendations for Downtown Commercial (Re) Development: 1. Areas for potential Downtown expansion or development should be identified with respect to the acquisition and rehabilitation of substandard properties or the preservation of structures for rehabilitation. );> Implementation: St. Joseph Economic Development Authority. 2. Governmental and semi-governmental services and buildings including the City offices and the post office impact the vitality of the downtown business district. These services should be encouraged to remain (City Hall) and permitted (Post Office) in the downtown business district. The City may wish to work with the Postal Service to extend the carrier delivery service area and post office hours. );> Implementation: City Council and Postal Service. 3. To further accommodate downtown (re) development the City Council should consider appointing a committee to review downtown commercial district standards or design guidelines including construction materials, colors, restoration of original architectural features, signage and awnings and/or establishing a low interest revolving loan fund to assist with the implementation of these goals. );> Implementation: City Council. 4. Ongoing majntenance and renovation of downtown buildings is needed to ensure the physical conditions are maintained or improved. The City should gauge business interest in participating in a commercial rehabilitation program and if strong interest exists, consider the application for funding to tile Small Cities Development Program. );> Implementation: The 81. Joseph Economic Development Authority and City Council. 5. Traffic circulation and congestion concerns should be addressed through volume analyses and origin- destination studies to determine causes of problems and effects if not resolved, and potential benefits to be derived by proposed solutions. »- Implementation: Police Department, Public Works Department, City Engineer and City Council. 6. If development on existing municipal parking lots in the downtown occurs, replacement parl~ing equal to the number of spaces lost should be required. );> Implementation: Planning Commission and City Council. 7. The City should consider ways to alleviate the parking shortages in the downtown through the use of signs to limit specific spaces to two hours or less parking as well as signage to direct customers to the municipal parking lot. »- Implementation: Planning Commission and City Council. 8. New single-family housing within the downtown core area should be prohibited due to compatibility concerns. Housing more appropriate in this type of setting is of a multiple family type, such as senior housing in which residents may walk to nearby services. Adequate off-street parking and open space should be provided for residential uses. );> Implementation: Planning Commission and City Council. City of 81. Joseph EDA 2002 Annual Report 12 9. The pedestrian circulation system should be enhanced by improving sidewalks, street furniture, and mitigate conflicts with traffic and street intersections by provjding proper separation and signage control and enforcing such signage regulations. ~ Implementation: Public Works Department and City Council with enforcement by the Police Department. Recommendations for Highway Commercial Developments~ 1. Commercial developments along County Road 75 and County Road 2 should be complimentary to commercial and service uses of the Downtown. ~ Implementation: Planning Commission and City Council through the identification of 'permitted uses' within the highway and general commercial areas in the zoning ordinance. 2. Commercial developments along 1-94/County Road 2 and County Road 75 should be of a specialized nature exhibiting the unique needs associated with major highway access and visibility. ~ Implementation: Planning Commission and City Council through the identification of 'permitted uses' within the highway commercial areas in the zoning ordinance. 3. In newly developing areas, direct property access to County Road 2 and County Road 75 should be prohibited and should be accommodated via a frontage road system. ~ Implementation: City Engineer, Planning Commission, City Council and Stearns County. 4. A plan to extend lighting along County Road 2, from tt1e Interstate 94/County Road 2 intersection into the community should be developed and implemented. ~ Implementation: Public Works Department, City Engineer and City Council. 5. The City should encourage Stearns County to proceed with the right-of-way acquisition for the County Road 2/ County Road 3 bypass to allow the future planning of commercial land uses and their access poi nts. ~ Implementation: City Council and Stearns County Highway Department. 6. Commercial and service centers should be developed as cohesive, highly interrelated and coordinated units with adequate off-street parking and appropriate regulated points of access. ~ Implementation: Planning Commission and City Council, through the zoning ordinance and site plan approval. 7. Revisions/additions of certain development standards should be considered to insure the quality of development desired by the community including minimum lot sizes, lot coverage, landscaping standards, building construction, lighting, screening and outdoor storage. ~ Implementation: Planning Commission with input from the Chamber of Commerce, Economic Development Authority with final action by the City Council. 8. Commercial maintenance codes may be enacted and enforced to help insure that the commercial development maintains community character on an ongoing basis. ~ Implementation: Building Inspector and City Council. City of St. Joseph EDA 2002 Annual Report 13 9. Immediate, short-range market potential and demands for activities that are not suggested for a site or area by the Comprehensive Plan or allowed by the Zoning Ordinance should not be the sole justification for a change in activity, ~ Implementation: Planning Commission and City Council. 10. Safe and convenient pedestrian movement should be considered within all service and commercial districts, including research on the feasibility of an overpass or underpass for bicycle/pedestrian traffic over or under County Road 75. ~ Implementation: Street Commissioner, City Engineer and City Council. 11. Efforts to achieve commercial redevelopment should be encouraged and promoted. ~ Implementation: Economic Development Authority. Recommendations for I ndustrial Development: 1. Existing industrial uses should be retained and new industrial development should be encouraged to locate in existing industrial parks and industrially zoned areas. Future industrial areas should be located adjacent to current industrial zoned land, provided it does not negatively impact or encroach upon wetlands in the area, ~ Implementation: Economic Development Authority and City Councjl. 2. Traffic generated by industrial activity should be prohibited from penetrating residential neighborhoods. ~ Implementation: Planning Commission and City Engineer through site plan approval and long range transportation planning. 3. The Economic Development Authority should promote industrial developments that maximize the return on city investments in public facilities and services, expand the tax base, provide quality employment opportunities and compliment existing services. ~ Implementation: Economic Development Authority. 4. Existing industrial uses and new industrial development should not cause pollutants or contaminants to be emitted into the surrounding environment (including air, soils, ground water, drainageways, sanitary sewer and storm sewer) in excess of State and Federal regulations. ~ Implementation: Building Inspector and Planning Commission. 5. Industrial areas should be adequately screened and appropriately landscaped and designed according to City standards. For both existing and new industrial development, regulations should be maintained with criteria regarding: building appearance and materials; screening of outside storage areas; screening of off-street parking facilities; use of landscaping; and proper handling of environmentally sensitive areas. ~ Implementation: Planning Commission, Economic Development Authority and City Council. 6. Efforts should be undertaken to limiting heavy/noisy industry to a specific area within current and future industrjal zoning districts to reduce the impact of these industries on residential areas. ~ Implementation: Planning Commission and City Council. City of St. Joseph EDA 2002 Annual Report 14 7. Continued expansion of the City's industrial and commercial tax base should be encouraged to assist in paying for needed services and in reducing tax impact on housing costs. Increasing the ratio of commercial/industrial assessed market value to residential assessed market value from historical 15%/85% ratios may be fostered through zoning of properties and economic development programs. >- Implementation: Planning Commission, Economic Development Authority and City Council. 8. A study should be conducted to identífy future industrial park property and methods of developing the industrial park prior to the full occupancy of existing industrial parks. >- Implementation: St. Joseph Economic Development Authority and City Council g. Industrial activities complementary to existing uses should be identified and the development of such industries should be promoted and facilitated. );> Implementation: Economic Development Authority and City Council 10. Alternative fiscal incentives should be investigated to attract new desired industries to St. Joseph. >- Implementation: Economic Development Authority and City Council 11. Due consideration should be given to all potential physical implications and services and facility demands (i.e., traffic generation, sewer and water demands, etc) of any proposed industrial development. Extension of utilities and annexation of areas about to become industrial in nature should occur prior to the issuance of building permits for the industrial construction. >- Implementation: St. Joseph Public Works Department, City Engineer, Planning Commission and Council. 12. The City should work with the Stearns County Highway Department to redesign County Road 133 to increase the weight limits from 9 ton restrictions to 10 ton weight restrictions or to waive the restrictions, >- Implementation: Public Works Department, City Engineer and City Council. 13. The Economic Development Authority should work with developers of new industrial parks to develop covenants which provide for aesthetically pleasing and quality developments. >- Implementation: Economic Development Authority. City of St. Joseph EDA 2002 Annual Report 15