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HomeMy WebLinkAbout2006 Annual Report CITY Of ST. JOSEPH www.cityofstjoseph.com Date: December 27,2006 Administrdtor Judy Weyrens Memo To: Mayor Cartbom Council Members City Administrator Weyrens MdYor Memo From: Richdrd Cdrlbom RE: Cynthia Smith-Strack, Municipal Development Group Annual Report of EDA - 2006 Councilors Steve Frdnk AI Rdssier Renee Symdnietz Ddle Wick Background: Attached is a report of annual activities of the St. Joseph EDA for calendar year 2006. The EDA reviewed the report at a regular meeting on December 20th. The EDA unanimously approved submission of the 2006 EDA Report to the City Council. Action: Following review and comment a MOTION to accept the report is in order. 2.) College Avenue North' PO Box 66s . Sdint. Joseph, Minnesotd )6)74 Phone )20.)6).72.01 FdX )2.0.)6).0)42. 2006 ANNUAL REPORT OF THE ST. JOSEPH EDA The S1. Joseph Economic Development Authority is required to submit an annual report to the St. Joseph City Council. The purpose of the report is to highlight EDA activities over the previous year. 2006 APPOINTMENTS: The following appointments to offices were made at the January 18, 2006 EDA meeting: Chair: Vice Chair: Treasurer: Secretary: Member at Large: Ross Rieke (Council Representative, term expires 2006). Richard Carlbom (Mayor, term expires 2007). Tom Skahen (At-large representative, term expires 2007). Carolyn Yaggie-Heinen (At-large representative, term expires 2012). Ken Jacobson (At-large representative; term expires 2011) Carolyn Yaggie-Heninen was sworn in as a member of the EDA Board on March 15, 2006 replacing outgoing Board Member Bruce Gohman. Board Member Tom Skahen's term expires January 1, 2007, however Skahen may continue to hold the seat if he so desires. Otherwise, Skahen is to hold the seat until a successor has been appointed. A plaque of appreciation for past service was presented to Mr. Gohman at a City Council meeting. 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. CORE INITATIVES AND STRATEGIC DIRECTIONS: The EDA conducted its annual prioritization analysis during January and February of 2006 and selected the following priorities: 1. Promote commercial developments that maximize the return on City investments in public facilities and services, expand the tax base, provide quality employment opportunities and complement existing services. 2. Promote industrial developments that maximize the return on City investments in public facilities and services, expand the tax base, provide quality employment opportunities and complement existing services. 3. Retain existing commercial/industrial uses and encourage new commercial/industrial development to locate in existing commercial/industrial parks and commercial/industrial zoned areas. 4. Proactively and consistently promote downtown revitalization activities. 5. Promote efforts to achieve commercial renewal/redevelopment in previously developed areas within the highway commercial district. 6. Provide appropriate, professional information to development leads in a timely fashion. 7. Administer financial incentive programs offered by the City/EDA. 8. Promote the exchange of information between the business community and the City of S1. Joseph. City of St. Joseph EDA 2006 Annual Report 1 2006 MEETING DATES: The St. Joseph Economic Development Authority met 12 times during the year 2006. The meeting dates were as follows: January 18, 2006 February 15, 2006 March 15,2006 April 19,2006 May 17, 2006 June 14,2006 July 20, 2006 August 16,2006 September 19, 2006 October 18, 2006 November 15, 2006 December 20, 2006 In addition, Mayor Carlbom and the City Council following advice from the Downtown Committee (task force) and with support from the EDA created various revitalization work groups in 2006 as a means of implementing a revitalization plan developed by the Downtown Committee (task force). The original Downtown Committee (task force) was disbanded following formal approval of their revitalization plan and formation of four work groups. The four work groups are tasked with four different scopes of operation: (grass roots) organization, project promotions, urban environs/aesthetics and resource development (fundraising). The downtown work group meetings/agendas are organized by EDA consulting staff. The downtown work groups have been meeting once a month since July of 2006. An itemized list of meetings held within 2006 by work group follows. EDA consulting staff attend most meetings. Organizational Work Group June 15, 2006 October 11, 2006 July 12, 2006 November 8, 2006 August 9, 2006 December 13, 2006 September 13, 2006 Promotional Work Group July 20,2006 October 19, 2006 August 17, 2006 November 16,2006 September 21, 2006 Urban Environmental Work Group July 20,2006 November 16,2006 September 21, 2006 October'19,2006 Resource Development Work Group June 15, 2006 Downtown Committee Group Chair August 28, 2006 November 21 ,2006 City of St. Joseph EDA 2006 Annual Report 2 BUILDING PERMITS: 1998 - 2006 Following is a comparison of building permits let for commercial/industrial projects in the City of S1. Joseph since the EDA's formation: YEAR APPLICANT PERMIT VALUE 1998 Sunset Mfging $250,000.00 1998 MeO 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 '"'..q(",,. ./ .<. 'oc.'<.. 7....'... " ... ........w.:. 1999 CommJrental $175,000.00 1999 Storage $60,000.00 1999 Bank $1,200,000.00 Subtotal $1,435,000.00 ~ 1!l .. 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 ii.';!' i. ..{,?;,'..,....... ii. ..../. .. '..'..,.... "?:".> ;,.')..." .,,?>., ,".' .'...',) i 2001 Spring Green $143,000.00 2001 Autobody 2000 $280,000.00 2001 Ministorage $90,000.00 2001 Sunset Mfging $80,000.00 Subtotal $593,000.00 .,'.. './..,;..!;]//' ;""".' 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 S1. 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 ";i;,.?:. ......'. .>.."';,.,.>.,.?T.. .' ,..,'.,': ..' '..i:';'. .'.............. .;;, 2003 Mn.Homelmprovemenffi 132,000.00 2003 DM Partnership 400,000.00 2003 OMS/MAC 1,409,000.00 2003 Lemmer Trucking 25,000.00 City of St. Joseph EDA 2006 Annual Report 3 YEAR APPLICANT PERMIT VALUE 2003 North Central Truck Accessories 1,058,300.0.0 2003 BTL Properties 400,0.00.00 2003 DM Builders 4,895.00 2003 Midnight Haulers 2,500.00 20.03 Midnight Haulers 30,0.00.00 Subtotal $3,461,695.00 - - 2004 Kaeter Trucking 113,400..00 2004 Safeshred 585,00.0.00 2004 Mn. Association of Farm Mut. Insur. 305,000..00 2004 Stonehouse Properties, LLC 997,043.00 2004 BTUS1. Joseph Partners, LLC 350,000.00 2004 Holiday 50,000.00 2004 Beeline 12,000.00 2004 Central MN. Fed Credit Union 125,000.00 2004 Mark Loso 158,395.00 2004 DM Bldg. Remodel 13,000.00 Subtotal 2,708,838.00 ~ "C'"',C"'t?S"::",,,' ~ 2005 DM Building Corp $ 175,000.00 2005 Verizon Wireless $ 75,000.00 2005 Midnight Haulers/David Potter $ 987,649.60 2005 Wilson HVAC $ 6,000.00 2005 Terwosscha Construction $ 436,000.00 2005 Gerald Wensmann $ 6,500.00 2005 RA Morton & Assoc (Bliss Media) $ 1,103,967.26 Subtotal $ 2,790,116.86 "" ":"'.";.C''(:'C'"..::.,c'',:'"'''' "ie": 2006 KaeterTrucking $ 98,000.00 2006 DM Building $ 100,000.00 2006 Bliss Direct Media $ 62,000.00 2006 State Bank $ 20,000.00 2006 Ehlen Properties $ 52,000.00 2006 College S1. Benedict (Institutional) $10,000,000.00 Subtotal (not including institutional) $ 332,000.00 TOTAL $18,275,579.86 City of 51. Joseph EDA 2006 Annual Report 4 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 1997 $895,000.00 1998 $1,906,000.00 1999 $1,435,000.00 2000 $361,500.00 2001 $593,000.00 2002 $4,687,430.00 2003 $3,461,695.00 2004 $2,708,838.00 2005 $2,790116.00 2006- . $332,000.00 TOTAL $18,275,579.8Ei · Total building permit value through November 2006. It is noted that the level of new commercial and industrial construction fell in 2006. A number of factors have contributed to the drop, including but not limited to: . Transportation Issues - four transportation studies on-going. . Downtown revitalization - on-going discussion regarding building design standards, at this time five (5) property owners have expressed an interest in rehabilitation projects but are awaiting direction regarding design standards. There is also the potential for architectural renderings assisting in actualizing the interests of the five property owners. . Limited industrial acreage is available. At this time the City has received a conceptual plan for a new 32-acre industrial subdivision. In addition the City/EDA have applied for Bioscience Zone acreage allocation. . As of the drafting of this report, EDA staff are working with two businesses regarding significant commercial projects planned for 2007 - 2008. City of St. Joseph EDA 2006 Annual Report 5 Estimated Annual Increase in Taxes For All Jurisdictions YEAR CITY COUNTY SCHOOL STATE MISC 1997 $ 5,591.88 $ 4,905.49 $ 5,500.44 $ 6,302.59 $ 245.43 1998 $ 16,241.82 $ 14,248.16 $ 15,976.22 $ 18,306.09 $ 196.37 1999 $ 12,995.39 $ 11 ,400.22 $ 12,782.8E $ 14,647.05 $ 43.96 2000 $ 2,909.47 $ 2,552..34 $ 2,861.8S $ 3,279.25 $ 69.68 2001 $ 4,611.19 $ 4,045.17 $ 4,535.7E $ 5,197.25 $ 636.83 2002 $ 42,143.93 $ 36,970.81 $ 41,454.76 $ 47,500.25 $ 476.41 2003 $ 31,528.04 $ 27,658.00 $ 31,012.47 $ 35,535.12 $1,753.17 2004 $ 21 ,224.27 $ 20,706.77 $ 23,218.16 $ 26,604.14 $ 356.68 2005 $ 26,785.25 $ 22,516.09 $ 25,134.24 $ 28,511.65 $ 382.25 2006 $ 2,419.28 $ 2,366.00 $ 691.22 $ 2,531.33 $ 34.86 TOTAL $166,450.52 $147,369.05 $163,168.06 $188,414.72 $4,195.64 * Based on taxes payabe 2006 City of St. Joseph EDA 2006 Annual Report 6 2006 PROSPECTSITECHNICAL ASSISTANCE/COORDINATION The EDA members and their staff/consultants worked with a number of commercial and industrial businesses during 2006. Nine (9) new business contacts were made during 2006 and follow up occurred with fifteen (15) contacts from previous years. Of the new prospects approximately 44% were commercial/service businesses while 56% were industrial or manufacturing. In 2005 the same percentage of commercial and industrial leads were received (44% commercial and 56% industrial). In 2004, 60% of new contacts were commercial/service establishments and 40% industrial; during 2003 43% of the new contacts were commercial/service businesses while 57% were industrial or manufacturing businesses. Following is a summary of the various contact activities within 2006. 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-E: This project involves the expansion of a service within the community. MDG has been keeping in touch with the project contact over the past five and a half years. MDG continues correspondence on a regular basis. Most recently at the prospect's request MDG compiled and delivered information regarding vacant commercial sites adjacent to CSAH 75, future roadways, future residential developments, acreage owned by developers and the location of the new K-8 school. This prospect has been working with another entity within the community with regard to the sale of land for the expansion of the service in S1. Joseph. This project has been approved for funding in 2008. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 02-FF: This project has been inactive for the past several months but MDG continues to follow up on an occasional basis. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 03-A: This group of developers are contemplating a large highway commercial development in an area not yet annexed into the City. The development representatives are awaiting the results of the Field Street extension corridor prior to moving forward with a potential project. MDG continues to maintain active correspondence with this prospect. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 04-F: This prospect contacted MDG in May of 2004 regarding commercial lease space in the downtown area. The prospect continues to express occasional interest in a project in downtown. MDG remains in contact with this prospect. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 04-N: This business is currently a home occupation in an adjacent area. The business owner contacted the City in 2004 re: industrial acreage. The business prospect has purchased a lot within Buettner Business Park. The construction time line is tentatively 2007. MDG remains in touch with the property owner. A holiday card was recently mailed to this prospect on behalf of the EDA. Project 05-0: MDG spoke to the project representative initially in June of 2005 to respond to very preliminary requests. MDG met with the prospect and an industry specialist from the Mn. Department of Employment and Economic Development later in the year. MDG continues to remain in contact with this prospect occasionally. A holiday card was recently mailed to this prospect on behalf ~f the EDA. Project 05-1: This project involves a potential new investment within the business community. Property has been secured and concept planning is on-going. The EDA and City Council approved a preliminary application for TIF assistance in May. Final TIF application is due out in January. A holiday card was recently mailed to this prospect on behalf of the EDA. City of st. Joseph EDA 2006 Annual Report 7 Proiect 05-J: This developer contacted MDG in December of 2005 and is seeking three to five acres of industrial land to establish a new distribution facility. MDG met with this prospect and encouraged prospect to secure interest from investors and financing. In the meantime, MDG occasionally follows up with the prospect. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect O&-B: This project involves investment in commercial property within the City of 5t. Joseph. MDG has met with the prospect on two occasions and forwarded information as requested. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06-C: This lead was forwarded from the 5CAEDP. The contact is interested in two acres of shovel ready industrial property somewhere in the 5t. Cloud area. The prospect has not yet secured a site. The project timeline has been delayed. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06-0: This project involves the relocation of a production facility from a nearby township to an urban service area. This contacted phoned MDG in the Spring of 2006 with a request .for information. MDG mailed requested proposal to the Company and routinely follows up with the project representative. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06...E: This project involves starting a new restaurant within the City. The project representative phoned MDG in March with a request for information. MDG coordinated request with project 05-1. Project 05-1 has indicated they have followed up with the project representative. This prospect is currently working with an existing business establishment to start up a restaurant. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06-F: This project contact phoned MDG in June re: commercial property for sale within the CBD. Prospect seeking existing building to purchase. Representative notes business plan implementation more realistic for Spring 2007 timeline. Also notes other communities have not been as responsive. as 51. Joseph and she likes the responsiveness here. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06-G: This project involves the subdivision of a 32-acre parcel for industrial use. MDG continues to remain in contact with the project representative. Timeline for improvements is 2007. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect O&-H: This project involves a closely confidential industrial lead. The project representative contacted the City in late June. MDG followed up with the contact via phone and email and mailing of requested site information. The project contact has noted the project is on hold. The project contact is the owner of the property. A holiday card was recently mailed to this prospect on behalf of the EDA. Proiect 06-1: This project involves the purchase of a home within the Central Business District (Downtown). Intent is to remodel the home to accommodate a business. The initial contact occurred in mid-December of 2006. MDG provided market and zoning information to the prospect. City of 81. Joseph EDA 2006 Annual Report 8 2006 DOWNTOWN REVITALIZATION PROJECT In April of 2006 the EDA received a notification/recommendation from a Downtown Committee (task force). The notice recommended the EDAlCouncil proceed with a revitalization effort with the knowledge and understanding that while the City may convene the process, it must quickly be led by the private entities whose time and money will ultimately determine the effort's success. The Downtown Committee concluded that a healthy, sustained partnership is crucial to getting the revitalization process off the ground and building the critical mass needed to spur a cycle of sustainable development over a period of several years. The EDA embraced the Downtown Committee (task force) recommendation and forwarded the recommendation to the City Council for review/consideration. The Council approved the revitalization plan and authorized/directed formation of the four work groups and commencement of the effort. Following is a summary of the goals/tasks associated with each work group: Oraanizational Work Group Establish and continue to strengthen open/active partnerships between regional stakeholders, business owners, residents, property owners, the Chamber of Commerce, service providers, government entities, the College and the Monastery. Manage and encourage continuous and active discussion and sharing of knowledge between stakeholders in the revitalization process. Tasks associated with imolementation of strateaic olan 1. Promote and expand involvement of citizens, businesses and organizations in Downtown revitalization by establishing effective relationships: a. Find those who are well-connected in the community - listen to what they have to say about project, build rapport, build support, build relationships. b. Find leaders of social networks within the community - listen to what they have to say about the project, build rapport, build support, build relationships. c. Find those connected to resources in the community - listen to what they have to say about the project, build rapport, build support, build relationships. 2. Provide advice to adjust project as needed. 3. Keep opinion-makers and others informed about the revitalization process through one on one meetings, discussions, forums, etc. 4. Create plans which help ensure the success of the downtown revitalization effort by promoting private/public partnerships - not the other way around. a. Identify impediments to collaboration and cooperation. b. Build bridges. c. Get social leaders, economic leaders, political leaders together and interacting in support of revitalization. d. Build lasting ties and opportunities for interaction. 5. Determine how work groups, property owners, residents, CIVIC and non-profit entities, elected/appointed city leaders and others interact to achieve continued and sustained synergy in revitalization efforts. a. Listen City of 81. Joseph EDA 2006 Annual Report 9 b. Network c. Build bridges 6. Work with the Promotions Work Group to create "road map" to strengthen the link between the College of St. Benedict, St. Benedict's Monastery, downtown property owners, adjacent residents, the public at large and City officials and provide measurable opportunities for abstract and physical interaction between the aforementioned entities. a. Provide continuous.opportunity for real interaction b. Listen 7. Work with Urban Environs Work Group, private/non-profit entities that own property or operate businesses to specifically identify land/buildings that could be available for early development and/or redevelopment. a. Identify a prOject b. Make it happen 8. Assist Resource Development Work Group in the formation of new organizations to achieve goals (e.g. downtown merchant's association, community foundation). Promotions Work Group Create/enhance opportunities to bring visitors/tourists to the City of S1. Joseph and to capitalize on activities and/or events already occurring within the community. Maximize private investment and public ownership of the revitalization process. Tasks associated with implementation of strateaic plan 1 . Put a face on the revitalization effort. a. Know what you want to say - keep it simple. b. Get the word out, keep getting the word out, keep getting the word out, repeat 2. Reposition the image of downtown revitalization from neutral or negative to a positive, constructive albeit long-term process. a. Get the word out about positive steps b. Reward investment in the project 3. Create a plan and work with downtown property/business owners to promote unity and cohesiveness as a means of having the downtown property/business owners take ownership of not only their individual property but the entire 'downtown experience'. Work with downtown property owners/downtown merchants to jointly plan special events so as to move from simply co-existing to forming a cohesive, unified force working together to achieve mutual goals. Get downtown merchants together to jointly plan/market business activities, sales and events. 4. Establish and promote community-wide events and activities which bring visitors and tourists to the City. Work to schedule and coordinate events that bring people into the community. City of St. Joseph EDA 2006 Annual Report 10 5. Work with other event. planners/holders within the community (e.g. College of St. Benedict; St. Benedict's Monastery, St. Cloud Independent School District, Downtown Association, etc.) to coordinate events on an area wide basis, such as a downtown art crawl corresponding to a cultural activity on the college campus. Keep those in town for special events in town a little longer by coordinating ancillary events (tell people going to a performance at the College what their options are for entertainment/eating afterward; tell those offering entertainment/eating options that an event is scheduled help them jointly market coordinated response) Urban Environs Work Group Create a pedestrian-friendly place of destination. Tasks associated with imD/ementation of strateaic D/an 1 . Determine specifically what the urban environment and associated character should look like with advice from urban landscape architect or other credible entity. 2. Develop design criteria such as traditional color palettes, awning styles, uniform signage types/styles, uniform lighting styles, uniform building styles, roof lines, exterior building materials, window styles, entryway styles, etc. 3. Determine what the ultimate size for downtown might be, list boundaries by streets; define the core. 4. Determine what types of facilities will 'anchor' the downtown, such as: park, school, govemment, office, Post Office, banks, etc. 5. Determine what building style is desired - not that each building is the same as the next, but what are specific architectural elements that will define downtown structures such as: a. Rooflines. b. Windows: size, position, style, awnings. c. Entryways. d. Color palette. e. Exterior building materials. 1. Signs. g. Facility Lighting. 6. Determine what streets and sidewalks might look like. a. Where do people drive b. Where do people walk c. Where do people gather d. Where do people sit e. What makes people want to linger, to talk, to explore 7. Determine how to best convey that vision to developers, business owners and city planners. City of 81. Joseph EDA 2006 Annual Report 11 8. Think about how the 'downtown experience' for pedestrians that will be different depending on the time of day, the day of the week, or the season of the year - even if a pedestrian is traveling along a well trod path; how can we provide opportunities for new experiences nearly every time a pedestrian takes to the streets. 9. Determine how high density housing fits into the downtown. Resource DeveloDment Work GrouD Identify the overall financial needs associated with downtown revitalization (from improving public facilities/amenities to assisting private sector in leveraging funds to capitalizing activities of downtown revitalization work groups) and develop a fundraising plan that supports the revitalization effort. Tasks associated with imolementation of strateaic plan 1 . Identify community initiative grants available through non-profit and state-wide programs for which the S1. Joseph Downtown Revitalization initiative will qualify. 2. Identify local partners interested in contributing financially to downtown revitalization and develop a plan that will enable local contributors to work together to ensure optimal benefit from local contributions. 3. Determine potential sources of public investment (e.g. tax increment financing, tax abatement, Small Cities Development Program, low interest loan payments, reVOlving loan fund, revitalization zone, etc.) 4. Plan, promote and conduct a variety of fundraisers as a means of capitalizing streetscape amenities and public realm enhancements like street furniture, urban park, town square, landscaping, water feature, banners, etc. 5. Research opportunities to promote structured parking facilities within the downtown (e.g. fee in-lieu of parking proceeds used to establish public parking). City of St. Joseph EDA 2006 Annual Report 12 CSAH 75 RENEWAL PROJECT At the January EDA meeting the Board directed MDG, Inc. to compile information regarding current zoning and existing land use in the CSAH 75 corridor in the vicinity of College Avenue. The EDA requested the information so as to discuss the future Of the corridor in terms of uses, potential for redevelopment and aesthetics. The EDA requested the information be compiled so as to entertain discussion related to the unique challenges/opportunities presented to development/redevelopment projects in the corridor. Among items the EDA initially discussed were: (1) level of financial assistance offered to establishments conducting redevelopment efforts of a sizable scale (2) participation by the EDA in master planning the corridor and (3) participation by EDA in securing first right of refusals for individual properties as a means of assisting with the combining of smaller lots into one larger lot more conducive to commercial development. Following initial discussion a technical inventory of parcels adjacent to CSAH 75 between Second Avenue NW and Third Avenue NE was developed. The technical inventory included: (1) a map depicting the subject. area, (2) a spreadsheet containing pertinent information regarding parcels in the subject area and (3) a pictorial directory of properties within the subject area. The pictorial inventory which follows is useful in comparing developments within the corridor and analyzing corridor attributes and opportunities. The initial three pages of the pictorial inventory are first tier properties south of CSAH 75 proceeding west to east from 1 st Street NW to 3rl:1 Street NE. The final three pages of the pictorial inventory are properties north of CSAH 75 proceeding west from 1st Street NW to ard Street NE. The EDA reviewed the inventory and noted their perception of attributes and challenges within the corridor as follow: Attributes . Condition of roadway. . Traffic mobility (at this point) appears to be sufficient. . Good visibility from principal arterial - desirable for highway commercial use. Challenges . The pictorial inventory reinforces the perception of development within the corridor as haphazard. . Commercial uses interspersed with residential uses. . Infill opportunities are not unified. . Parcels vary greatly in size. . Lack of continuous frontage/backage roads offering access to commercial development. . Aesthetics: inconsistent architectural styles, wide variety of building construction types/materials employed, non-uniform setbacks and limited landscaping. The EDA embraced the concept of promoting redevelopment within the identified corridor as a priority. The EDA requested staff compile additional information regarding the potential for a specific redevelopment project in the vicinity of College Avenue and CSAH 75. Following additional review and conceptual discussions, the EDA approached the Planning Commission and the City Council regarding their thoughts of a potential redevelopment in the vicinity of College Avenue and CSAH 75. The three entities met on October 18th to discuss the concept. The EDA continues to work on this project. City of St. Joseph EDA 2006 Annual Report 13 ADDITIONAL PROJECTS: The S1. Joseph EDA actively pursued other projects during 2006. Preparatiol\lMaintenance of Infonnation for Distribution to. Develooment Leads The EDA created and distributed information to development leads as requested throughout the year. The information includes a summary of development activity based on City data and commercial/industrial sales based on data from the .steams County Assessor's Office. All data reflected is part of the public record. A summary of sample information created follows and includes: 1. A summary of current residential development activity, phasing and resulting increases in population. 2. A summary of historical commercial development activity. 3. A summary of residential building permit information from 2000 to 2006. 4. A summary of sales of vacant commercial acreage. 5. A summary of sales of commercial facilities. 6. A summary of sales of vacant industrial acreage and industrial facilities. Preparation of Inventory of Available Commercial and Industrial Land and Buildinas for Sale or Lease. The EDA has maintained a database of information regarding available commercial and industrial properties (for sale or lease). The database contains GIS information that is available with overlays of existing urban facilities/infrastructure, orthophotos, topography, soil types, wetlands and more. The data is tied to Steams County's GIS database and includes information such as names of property owners, property identification numbers, estimated market values, property addresses and more. The EDA file includes electronic copies of: 1. Vacant commercial and industrial parcels available for sale within the community. 2. Commercial and industrial facilities available for sale within the community. 3. Commercial and industrial facilities for lease within the community. 4. A parcel by parcel inventory/examination of all properties .within the B-1 Downtown Commercial District zoning classification. Particioation in the Southern Corridor (Field Street) TAC EDA consulting staff was pleased to serve on the Technical Advisory Committee for the Southern Collector Street corridor study. Particioation in the Northern Corridor Task Force EDA consulting staff was pleased to serve on the Technical Advisory Committee for the Northern east/west Collector Street corridor study. Participation in the City of St. Joseoh Transoortation Plan EDA consulting staff is pleased to serve on the Stakeholders Group for the City's Transportation Study. This study promotes future connectivity and continuity of collector streets within the City. City of 81. Joseph EDA 2006 Annual Report 14 Promotion/Offerina of Financial Incentives Available The EDA continues to offer the following incentives to qualified applicants. Tax Increment Financina The EDA received and MDG reviewed one pre-application for the use of tax increment financing in 2006. The proposed use of redevelopment TIF is the rehabilitation of an existing underutilized parcel within the Downtown. EDA staff has reviewed TIF concepts with a variety of business prospects. Among TIF districts contemplated were economic development district(s), redevelopment district(s) and renovation/rehabilitation district(s). Economic development districts have the shortest duration (eight years of payable increment) whereas both redevelopment and renovation/rehabilitation districts can have a life of up to twenty-five (25) years. As you may be aware tax increment financing is a tool, which allows the City/EDA to reimburse the company or land owner a portion of the new property taxes, which are generated as a result of an expansion project. The amount of financial assistance available (TIF) is dependent upon a number of factors including but not limited to the assessed market value of the building and the financial need of the company. Tax Abatement EDA staff reviewed tax abatement as an incentive with many business prospects this year. Like TIFt tax abatement is a tool, which allows the City/EDA to reimburse the company a portion of property taxes, which are generated within a specified period of time. The difference between TIF and tax abatement is that with tax abatement the County and/or school district have an option to participate (with TIF participation is mandatory). The amount of the tax abatement available depends on a number of factors, including, but not limited to the financial need of the company and participation by County and school entities. The term of tax abatement is up to twenty years <;Iepending on a number of variables. Revolvina Loan Fund The revolving loan fund, established in 2002 through principal and interest payments from a MIF grant/loan have been building the fund, which has a current balance of approximately $25,000. EDA staff have discussed the RLF with a few business contacts however no formal applications for assistance were received. Formal loan fund guidelines were developed in 2006. The guidelines will need to be approved by the City Council prior to effectuation. Minnesota Community Caoital Foundation The City of S1. Joseph/EDA has access to the Minnesota Community Capital Foundation (MCCF) through Steams Electric and Great River Energy. Throughout the year EDA staff have distributed information to several development prospects regarding the fund. Through the MCCF Great River Energy is able to offer up to $1,000,000 to qualified projects for a variety of uses (including working capital) on reoccurring basis. Development leads have not been interested in the MCCF perhaps due to the absence of interest savings. Downtown Committee Staff Liaison The inaugural meeting of the Downtown Committee was held in June of 2005. Since that time, the committee has broken up into four work groups which each meet once a month since June of 2006. MDG provides staff support and attends work group meetings on a consistent basis. Zonina Ordinance Updates The EDA and MDG developed and/or reviewed/commented on several zoning ordinance updates including those related to: (1) Planned Unit Developments, (2) entryway corridor over1ay standards, (3) proposed revisions within the B-1 and B-2 Districts and (4) curbing requirements for parking lots in industrial zones. Bioscience Zone Acreage Allocation ApPlication St. Joseph participated in a joint application process for bioscience zone acreage allocation pursued by the cities of S1. Augusta, S1. Cloud, S1. Joseph, Sartell, Sauk Rapids and Waite Park. MDG drafted and City of St. Joseph EDA 2006 Annual Report 15 submitted information to the St. Cloud HRA for inclusion in the joint application on behalf of the City of St. Joseph/st. Joseph EDA. The application included a combination of maps and narrative. Three subzones containing approximately 270 acres were included in the application for acreage allocation. The acreage included a mix of underutilized parcels and vacant land. The narrative included a description of current oUtreach to commercial and industrial businesses including existing programs and marketing strategies. In addition, Specific Bioscience development plan goals, objectives and strategies were established, including, but not limited to: 1. Mobilize and activate outreach to bioscience/biotechnology manufacturing and production facilities. 2. Coordinate local development plan with regional development plans. 3. Organize political, business, health care and educational communities around campaign to expand bioscience/biotechnology sector. 4. Provide solutions to bioscience/biotechnology industry needs relating to facilities and infrastructure. 5. Establishing quantitative goals for industrial development including those related to the bioscience biotechnology sector following the completion of a market researCh study. The EDA has informally discussed a goal to increase the commercial/industrial tax base by 1.3% annually (approximately $.5 million investment annually). Currently 16.5% of the City of St. Joseph's estimated $235 million market value is contained within the commercial/industrial sectors. Mn. DEED estimates 1,811 employment opportunities are available within the City of St. Joseph. Pending the results of the market research study, the EDA has informally discussed a goal of adding 15 to 25 employment positions annually. 6. Development of a business park specifically designed for and marketed to bioscience biotech industries. 7. Analysis of the existing market conditions to determine potential bioscience/biotech market niche. 8. Analysis of facility/infrastructure needs specifically relating to bioscience/biotech sector. 9. Development of marketing materials specifically targeted to bioscience/biotech sector. 10. Coordination of local and regional marketing efforts to increase the reach of the marketing plans while avoiding duplication. 11. Participating within the Science Initiative of Central Minnesota and conduct other means of outreach intended to organize health care, business, political and educational communities. 12. Help ensure continual capacity exists to serve the needs of bioscience establishments including, but not limited to, municipal services, transportation infrastructure, electrical and telecommunications infrastructure. The cities participating in the bioscience zone acreage allocation application are currently awaiting the results of the Mn. Department of Employment and Economic Development's review of applications submitted statewide. Establishment of Business Retention and Expansion Prooram The City/EDA worked with St. Cloud State University to establish a community development internship. The internship was sponsored by the Economic Development Association of Minnesota (EDAM). The principal task assigned to St. Joseph Community Development Intern Mia Yang was to develop and implement a City of 81. Joseph EDA 2006 Annual Report 16 business retention and expansion program. The purpose of the BRE program is to identify and understand the current needs and aspirations of a cross section of the 51. Joseph business community. The BRE program consisted of site visits with business owners to pol! business owners on a variety of topics, addressing immediate 'red flag' issues identified during the business survey visits, compilation and analysis of data and presentation of data/results to the EDA. Approximatel~ 30 visits were conducted by Ms. Yang. Data and results were presented to the EDA at its December 20 meeting. FOllowing is a synopsis of results: . 18 of the 31 businesses participating in the BRE started up in St. Joseph . Of those interviewed and/or responding to the BRE survey: nine were service-oriented facilities; four were restaurant establishments and four were wholesale operations. . Only about half of the responding businesses offered benefits such as vacation, 401 K plan, health insurance and the like. . Respondents indicated they would like additional information regarding business management and incentives offered by the EDA along with e-business, marketing and legislative issues. . The majority of those responding (82%) noted they have not used local, state or other incentives. . The majority of those responding (73%) noted they would like to access local, state or other incentives. . . 73% of businesses noted sales have increased in the past three years; 23% noted sales have stayed approximately the same. . 87% of those responding indicate they expect their businesses to grow within the next three years. . 70% of those businesses responding noted they have considered expansion within St. Joseph. . When asked what type of expansion those business owners had considered: 23% noted they have considered adding employees, 20% noted the expansion was adding new equipment, 14% noted the expansion was training existing/new employees and 11 % noted they have considered building/facility expansion. . Of those participating in the BRE program, three establishments noted they were considering moving and one establishment noted it was considering closing. . Most respondents 73% noted they were not considering expansion/building additions at the present time, six respondents noted they were considering expansion. . When asked about deterrents to expansion respondents noted: increased property taxes were deterring expansion along with a feeling the costs of expansion outweigh the potential benefits and a feeling the current business size was adequate. . When asked to rate the importance of the appearance of their building those responding replied: 27% 'very important'; 36% 'important' and 36% 'not very important'. . Those completing the BRE survey were asked to comment on the "business atmosphere" within St. Joseph. The term was not defined within the survey. No respondents rated the 'business atmosphere' as excellent or poor, 100% of those responding noted the 'business atmosphere' in St. Joseph was average. Consideration of Establishment of New Grant for Businesses The EDA in September of 2006 in response to information gained through BRE visits began discussing potential methods of reaching out to business owners potentially contemplating smaller scale expansions, updates and/or renovation. One item of generating interest was the concept of a grant to small business owners contemplating renovation projects so as to assist with securing the services of an architect. The grant could achieve two objectives: good will/outreach to business owners contemplating smaller projects and creating quality, sustainable development. The EDA envisions rolling out the grant in 2007 in a very limited fashion. The grant could be targeted to business owners who have previously approached EDA staff regarding development projects, particularly within the Downtown. City of st. Joseph EDA 2006 Annual Report 17 Proactive communicationefforts:EDA to business community Another result of the BRE program was a defined need to more frequently communicate to business owners thorough a variety of methods including emails, articles within the Newsleader and a prominent presence on the City's web$ite. The EDA has expressed a desire to pursue proactive communication efforts in the future. Such efforts are expected to be part of the EDA's 2007 work plan. City of St. Joseph EDA 2006 Annual Report 18 PROGRESS REPORT: GOALS FOR 2006: Following were proposed EDA goals for 2006 with updates on progress toward goals and plans for 2007. EDA Work Plan: Recommendations relatino to technoloov: 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. Update: The City Council approved the extension of fiber optic high speed data lines to the City's public works facility located within the industrial park. As a result high speed data lines will be available to all industries within the next few months. Recommendations for Downtown Commercial (Re) Development: 1 . The EDA should continue to promote rehabilitation of substandard properties and/or preservation of structures for rehabilitation in the Downtown. Uses should be centered on activities dependent on pedestrian traffic. ~ Implementation: S1. Joseph Economic Development Authority. Update: EDA staff met with several contacts regarding potential developments in the downtown business district throughout 2006. Information regarding individual properties and exchange of information between leads seeking lease space and developer's seeking facility ownershipllease have been provided. Redevelopment TIF information has been distributed to interested parties. A detailed inventory of downtown parcels has been created and is on file. 2. The EDA 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. ~ Implementation: The S1. Joseph Economic Development Authority and City Council. Update: Businesses within the downtown have not demonstrated interest in participating in a commercial rehabilitation program which could involve storefront enhancements, coordination of design elements, installation of streetscape amenities, etc. The EDA has identified the potential for the SCDG to be used to promote commercial rehabilitation in conjunction with both the Downtown revitalization project and the CSAH 75 renewal effort. A recent announcement by the College of St. Benedict to require students to live on campus may leverage a SCDP grant application as there may be a potential to convert existing student rental units to alternate uses. This is a goal the EDA will likely discuss further in 2007. 3. The EDA should work with the COllege of St. Benedict and the Chamber of Commerce to proactively and consistently promote a downtown atmosphere that projects an image and ambiance associated with St. Joseph's history and its association with higher education as a means of creating a distinct identity for the City's downtown. ~ Implementation: S1. Joseph Economic Development Authority, College of st. Benedict and Chamber of Commerce. Update: Implementation of the Downtown revitalization plan is underway. The EDA is central to support and participation in the project. City of st. Joseph EDA 2006 Annual Report 19 4. Sponsor or work with community organizations and the Minnesota Green project to sponsor downtown landscape and holiday light displays which reflect the interdependence of the City and the College. ~ Implementation: St. Joseph Economic Development Authority. Update: See Goal # 3 update above. Recommendations for Hiahwav Commercial Developments: 1. Continue to encourage and promote efforts to achieve commercial redevelopment. ~ Implementation: Economic Development Authority. Update: The EDA initiated the CSAH 75 renewal program in 2006. The program has been described in further detail earlier in this report. The renewal program will be a focus of the EDA in 2007. Recommendations for Industrial Develooment: 1. Existing industrial uses should be retained and new industrial development should be encouraged to locate in existing industrial parks and industrially zoned areas. ~ Implementation: Economic Development Authority and City Council. Update: EDA and staff continue to encourage industrial development via proactive outreach to development contacts. Throughout the year information requests from six contacts interested in. industrial development have been facilitated. 2. The EDA should continue to work with property owners to develop future industrial areas adjacent to current industrial zoned land, to assure an adequate supply of industrial land is available for development in the future. ~ Implementation: Economic Development Authority. Update: The City and EDA staff have reviewed concept plans for a 32 acre industrial park development on a portion of the former Feld Farm. The project is currently proceeding through environmental review. The EDA submitted an application to the Mn. Department of Employment and Economic Development's Business Development Public Infrastructure grant program. 3. 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 4. 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. Update: EDA staff continues to work with owners of industrial property zoned or guided for industrial development. The 1-1 zoning standards have been amended to reflect standards prescribed by existing covenants specific to industrial parcels. City of 81. Joseph EDA 2006 Annual Report 20 2007 EDA GOALS The EDA has initiallY established the following goals for 2007. The objectives/strategies will be further defined in the months of January and February, 2007. . CSAH 75 Renewal . Downtown Revitalization . Update Economic Development Plan included in the 2002 Comprehensive Plan. . Proactive communication with business owners. . Approval/implementation of architectural services grant programs beginning with five property owners within the downtown who have expressed a desire to secure architectural renderings. . Facilitation of communication between the COllege of St. Benedict and the business community to exchange information regarding the impact CSB has on business owners, in terms of both increasing clients and potential competition between services provided. City of S1. Joseph EDA 2006 Annual Report 21