The URL can be used to link to this page

Home My WebLink About[05a] Millstream Shops & Lofts - Equipment RequestDATE: February16, 2011 MEMO TO: Economicc Developmennt Authority FROM: CynthiaSSmith-Strack MMunicipal Devvelopment Grroup RE: Request ffor Assistancee: Millstream Shops/Lofts Restaurant Equipment Backgroundd: At the Auguust 25, 2010 Regular EDDA meeting tthe Board discussed temmporary incenntives available loccally through the Minnesoota Jobs Bill approved inn April. One such incenttive is temporary auuthority to usee excess reveenue for econnomic development purposses external to the district. The Board discusssed several ppotential projeects/uses for excess TIF rrevenue. Thee EDA directed Straack to follow uup with Concrrete Plus and Millstream Shops/Lofts reegarding potentially taking advantage of availaable incentivees. Jon and Colleen Petterss, owners of MillstreamSShops/Lofts eexpressed ann interest in using excess TIF rrevenue as a means of heelping attract a suitable reestaurateur too the buildingg end- thh cap. Petters attended the October 27 EDA meetinng and discusssed equipmeent needs inclluding permanent floooring, a hoood, grill, food pprep area(s), a freezer/coooler, and a reffrigerator. At the Novemmber 24, 20100 EDA Board Members and Jon and Coolleen Petterss again discusssed potential enhhancements too the restauraant end-cap sspace which ccould assist inn attracting a ffood service tenannt. Pursuant to EDA directiion at the Octtober meetingg, the propertyy owners obtaained price quotes for the installation of an exxhaust hood aat the premisees. The Boardd noted that, in practice, it haas been the EEDA’s methodd of operation to comply wiith City of St. Joseph ruless relating to sppending by inddividual departments. This means any eexpenditureeexceeding $1,000 is forwarded to the City Coouncil for buddget approval following an EDA recommmendation. Therefore, beefore any fundds were actuaally dispersedd, the City Coouncil would bbe asked to approve the pparticipation. At the Novemmber meeting, EDA Board Members notted a great deeal of supportt for a unique dining opporttunity being aadded to the eend-cap and tthe desire to ppromote activvity within the downtown 244-hours a dayy as opposed to just duringg typical work hours. In adddition, the EDA Board noted a restaurant occupant preesented an oppportunity to fuurther capitalize on the vollume of special eveent traffic at the College annd that the adddition of a unnique restauraant could assist in promoting ‘linngering’ withinn the downtowwn. The Boarrd also noted other potential uses for exxcess TIF revenue under the Staate Jobs Bill wwere possiblee. A motion wass approved att the Novembber 24, 2010 mmeeting in support of readyying the restaaurant recommended to space for occcupancy with the understanding (1) the aation would noot be forward the City Counncil until equipment purchaase was immiinent; (2) the recommendaation would bee limited at thiss time to $20,000 with an innvitation for PPetters to requuest up to an additional $10,000 subjject to fundingg availability; and, (3) if an alternate usee(s) was identified for exceess TIF revenue, Petters woulld have two calendar weekks to either ennter into a purrchase agreement for the equipmment or releaase the recommmendation. The Petters hhave indicated that equipmment purchasee is imminentt at this point. They are requesting asssistance in ppurchasing/insstalling equipment in the aamount of $200,000. Informaation is attached reegarding the proposed equuipment purchhase/installation. Jon and Colleen will bbe attending thee EDA meeting. Action: Discussion oof the request at the meetinng is requesteed. If the EDAA is supportivee of participatting in the purchasse/installation of equipmment for thee restaurant end-cap sppace a MOOTION recommendinng the City Coouncil approvve the expendditure is in ordder. Formal Request to the St. Joseph Economic Development Authority Collegeville Companies met with the EDA at their December 22, 2010 meeting regarding remaining grant monies. In efforts to attract additional business to downtown St. Joseph, the EDA generously offered $20,000 from their stimulus funds if it would be used for permanent equipment, labor, and infrastructure for the restaurant space at 15 E. Minnesota St. We mutually agreed to a March 15 deadline of formal request for the grant money offered ($20,000). It is our understanding that the possible additional $10,000 discussed in Dec. 2010 is now being offered to another area business. We request that if that business does not utilize that money by the Federal Government’s June 30, 2011 deadline, we would have the opportunity prior to June 30, 2011 to re-apply for that amount, as the requirements for this work will exceed our $20,000 grant by $9,300.00 Our itemization of this equipment, infrastructure, and labor costs are listed below. We will begin work on the space within two weeks of approval by the EDA. Our projected timeline for completion of the work is ten days to two weeks. Item Expense/Fee $ 1,300 Permits, legal fees Equipment: Roof curb and roof mount for exhaust fan Gas piping for make-up air vent Grease exhaust fan 3M Firemaster grease duct wrap Direct-fired make-up air vent and air unit Roof repair Crane Certified engineered mechanical plans ________ $11,650 Lumber, metal studs, s/r headers/fasteners $ 1,000 Roof repair $ 2,000 Floor repair $ 150 Electrical components: Conduit, wiring, $ 1,000 Labor for work $ 4,400 $ 8,550 ___________ ___________ $21,500 We anticipate that an indirect fired make-up air unit will be required as there are sleeping rooms in the same building (upstairs condos) as the restaurant. $ 7,800 Additional We can provide a final, detailed equipment list to the EDA, if desired, following our final negotiations with suppliers. We at Collegeville Companies thank you for your help and work on this.