HomeMy WebLinkAbout2010 [12] Dec 15 (2)December 15, 2010
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in joint session with
the St. Joseph Economic Development Authority in Joint Session on Wednesday, December 15, 2010 at
4:00 PM in the St. Joseph City Council Chambers.
City Council Members Present: Acting Mayor Dale Wick. Councilors Renee Symanietz, Steve Frank.
City Administrator Judy Weyrens.
EDA Members Present: Chair Dale Wick. Board Members Ken Jacobson, Tom Skahen, Carolyn Yaggie
Heinen. EDA Director Cynthia Smith - Strack.
City Representatives Present: City Engineer Randy Sabart, Public Works Director Terry Thene, Finance
Director Lori Bartlett, Finance consultant Tracy Ryan.
Others Present: Kip Cameron, Margy Hughes, Ellen Wahlstrom, Mike McDonald, Sr. Thomesette
Schuller, Mayor Elect Rick Schultz.
EDA Director Cynthia Smith - Strack stated that the purpose of the meeting is to discuss a potential
development adjacent to CR 2 and 194, commonly referred to as the Gateway Project. The City has been
approached by a company to locate their headquarters at this site and the proposed project would include
a 70,000 square foot office building and 30,000 square foot. The St. Joseph site is one of three sites
being considered with two in St. Cloud. St. Joseph can offer the business a landmark site that the
company can help develop. The proposed project has an estimated market value of 4 million with
minimal job creation. The company is relocated and is technology in nature. Smith - Strack stated that
staff is looking for direction from the EDA and City Council as to what incentives the City Council would
consider in attracting the business. At this time Smith - Strack introduced finance consultant Tracy Ryan of
David Drown and Associates.
Ryan stated that the site being discussed for development is a great opportunity for St. Joseph. The
developer can develop an aesthetic site that can be known for the company such as the Anderson
Trucking Exit in St. Cloud or the Bauerly exit in Avon. Companies are attracted sites such as the one in
St. Joseph for branding and visibility. With regard to incentives that St. Joseph can offer, Ryan stated
that St. Joseph can offer any finance incentive that any other community can. The following finance tools
would be available to St. Joseph: Tax Increment Financing, including back ending with tax abatement,
BDPI funds administered by the State, Job Z, Parkland dedication and half cent sales tax.
Smith - Strack stated that the company being discussed needs to make a decision on location in February
of 2011 and have occupancy by January of 2012. She reiterated that the company would be a good
anchor for St. Joseph, dedicated to the St. Cloud area and is one of the top growing companies.
Development of this site could help tie the downtown area to the Gateway area spurring additional
commercial development.
The EDA and Council discussed the long range plans of the City including the re- alignment of CR 2
providing additional commerce opportunities and the potential to link the area trails to increase pedestrian
traffic. Among items discussed were: length of tax increment financing and tax abatement and whether
or not the City Council would consider using a portion of the half cent sales tax to purchase parkland in
the area which in turn would be used to help offset the development costs. Smith - Strack stated that St.
Joseph will need to be prepared to present a formal assistance proposal if the St. Joseph site is selected
and requested that the EDA and Council provide staff with direction.
Understanding the current economic times and additional services required if the development moves
forward, the EDA and City Council members present came to consensus that they would be willing to
consider the use of Tax Abatement, Tax Increment Financing and half cent sales tax revenue. They also
understood that an assistance would require public hearings and further actions of both the City Council
and EDA, but encouraged the staff to pursue location of the company being discussed.
Adiourn: Th mee 'ng was adjourned by consensus at 5:00 PM
QC
J d We rens
inistrator