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HomeMy WebLinkAbout2010 [11] Nov 24CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes —Wednesday, November 24, 2010 Present: EDA Board Members, Carolyn Yaggie - Heinen, Ken Jacobson, Tom Skahen, and Dale Wick. Absent: Al Rassier, Carolyn Yaggie- Heinen. Also present: Colleen Hollinger Petters owner of Millstream Shops /Lofts, Cory Ehlert, property owner 29 East Minnesota Street, and EDA Director Cynthia Smith- Strack. Chairperson Wick called the November 24, 2010 regular meeting of the St. Joseph EDA to order at 3:05 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Skahen, second by Jacobson to approve the agenda as presented. Motion carried 3 -0. BFA Grant Application — Millstream Shops /Lofts Wick introduced the agenda item and noted Hollinger Petters's presence at the meeting. Strack noted Collegeville Communities has submitted an application to the Business Facade Architectural Grant Program related to a 550 sf retail space available at Millstream Shops. A copy of the application follows this memo. The Application relates to a project discussed at the October EDA meeting during which the Petter's presented information on development priorities for the subject building. The BFA application is to install a plate glass door to make a 550 sf retail space available. The BFA Program is a matching grant is for architectural services and actual construction costs relating to fagade redevelopment or landscape visible from public rights of way. The EDA's 2010 capital allocation included funding for BFA Grant applications and other revitalization efforts. The remaining balance is sufficient to cover additional BFA application. Since the BFA program is limited to a $1,000 grant, oversight and authority for grant approval was delegated to the EDA. Wick invited Petters to address the project. Petters noted Collegeville Communities was excited about the grant opportunity and very appreciative of the EDA support. Petters noted that if granted the door would be installed within three months. Motion Skahen, Second Jacobson to approve a matching BFA grant in the maximum amount of $1,000 for the installation of a plate glass door to provide entrance to a 550 sf retail /office space. Motion carried 3:0. EDA Participation in Readying Restaurant Space: Millstream Shops Wick introduced the agenda item. Strack noted the property owners have indicated several items could help attract a suitable restaurateur to the end -cap space in the Millstream Shops /Lofts building. Items include: permanent flooring, a hood, grill, food prep area(s), a freezer /cooler, and a refrigerator. Pursuant to EDA direction at the October meeting, the property owners have obtained price quotes for the installation of an exhaust hood at the premises. Attached please find a copy of the price quote. Please also note a conversation with the Building Official has determined Option 2 of the quote is a requirement. As noted in the financial reports, approximately $38,000 is available for economic development project as a result of the Mn. Jobs Bill approved by Governor Pawlenty in April. The property owners were looking for EDA participation in readying the restaurant space. Wick again introduced Colleen Hollinger Petters who explained the desire to temporarily direct potential excess TIF revenue to the project with actual installation of restaurant equipment delayed for a few months until talks with investors /chefs could evolve a bit more. Petters requested an April 1, 2011 deadline for acting on any allocation the EDA would consider. The Board noted that, in practice, it has been the EDA's method of operation to comply with City of St. Joseph rules relating to spending by individual departments. This means any expenditure exceeding $1,000 is forwarded to the City Council for budget approval following an EDA recommendation. Therefore, before any funds were actually dispersed, the City Council would be asked to approve the participation. Board Members noted a great deal of support for a unique dining opportunity being added to the end -cap and downtown. Wick noted it fit into the EDA's revitalization plan and a desire to promote activity within the downtown 24 -hours a day as opposed to just during typical work hours. In addition, Wick stated it presented an opportunity to further capitalize on the volume of special event traffic at the College. Strack noted research has shown most successful downtowns have to provide enough activity to keep shoppers in the area for one and a half to two hours and that the addition of a unique restaurant could assist in promoting 'lingering' within the downtown. Wick, Skahen, and Jacobson noted other potential uses for excess TIF revenue under the State Jobs Bill were possible. The Board discussed whether it was more desirable to allocate the excess dollars to support restaurant options, essentially tying up excess revenue for five months, or if it was better to decrease the theoretical participation in the readying the restaurant space and add a conditional exercise clause to use of the revenue. Petters indicated an option to 'use or lose' excess TIF revenues within a finite timeline (i.e. two weeks after notification) was an agreeable arrangement. In addition, she requested the EDA consider participation at a level of $20,000. Motion Skahen, Second Wick to recommend the City Council approve the use of excess TIF revenue for support of readying the restaurant space for occupancy with the understanding (1) the recommendation would not be forwarded to the City Council until equipment purchase was imminent, (2) the recommendation would be limited at this time to $20, 000 with an invitation for Petters to request up to an additional $10, 000 subject to funding availability, and, (3) if an alternate use(s) was identified for excess TIF revenue, Petters would have two calendar weeks to either enter into a purchase agreement for the equipment or release the recommendation. Motion carried 3:0. BFA Application: Ehlert 29 East Minnesota Street Wick introduced the agenda item. Strack noted Cory Ehlert, owner of the property at 29 East Minnesota Street was at the meeting and had submitted an application to the Business Facade Architectural Grant Program related to facade improvements and landscaping at the subject property. Mr. Ehlert's vision for the property includes a mixed commercial and residential rental development which blends in favorably with the Millstream building. Wick introduced Ehlert who distributed pictures of the site to the Board. Ehlert noted an interim use permit for residential use of the building had been issued for the property, however, the IUP was short lived. His intent was to transition the structure to a mixed commercial /residential facility in a style complimentary to that of Millstream Shops /Lofts. Plans submitted include landscaping and exterior improvements estimated at $11,500. The exterior improvements would complement improvements in the interior which would initiate the transitioning of the use to mixed rather than completely residential. The exterior improvements were expected to be completed within two to at most three months. The landscaping improvements would occur at a later date. The EDA discussed the exterior improvements and how the proposed improvements related to the BFA grant. In addition, the Board requested Ehlert work with Randy Schmitz at Scenic Specialties to draft a EDA Minutes - October 27, 2010 2 landscape plan for the property which would be consistent with the streettlandscaping vision outlined by Scenic Specialties at the request of the EDA earlier in the year. The pending landscape project would then not only be consistent with previous visions for the revitalized area, but also could be used as a `sample project' to encourage other landscaping aimed at connecting the Wobegon Trail to Downtown. Motion Skahen, Second Wick to approve a BFA matching grant up to a maximum of $1,000 to support fagade renovation and exterior improvements to the structure at 29 East Minnesota provided the improvements support conversion of the rental structure into a mixed use consistent with the Millstream ShopsJLofts development. Motion carried 3 -0. Motion Skahen, Second Wick to approve spending $300 for a landscaping plan for the property at 29 East Main Street provided plan completed by Scenic Specialties in coordination /cooperation with the street and landscaping plan developed earlier this year for the EDA by Scenic Specialties. Rental Housing Working Group Chairperson Wick introduced the agenda item. Strack noted a Rental Housing Working Group has been meeting since August of this year. The WG has been charged with determining, examining, and reporting potential strategies to transition student rental properties from previous occupancy levels to those experienced post- change in CSB /SJU on campus residency requirements. At an earlier meeting the WG conducted a brainstorming session wherein over 50 ideas relating to eight concept areas were generated. The concept areas identified were: ideas for action by CSB /SJU, ideas related to transitional planning, ideas related to economic development, ideas related to raising capital /fundraising, ideas relating to reuse of Campus Villas, ideas relating to use of student housing by faculty /staff at CSB /SJU, ideas relating to the transition of single family units, and ideas relating to general concerns regarding the residency program change. At subsequent meetings a matrix for evaluating the brainstorming ideas was reviewed /completed. Each brainstorming idea was evaluated on a four point scale for five different attributes. Attributes included: 1. To what degree each idea was based on reason, clear, and sensible thinking rather than emotion or prejudice. 2. To what degree each idea is capable of being put into effect. 3. How quickly each idea can be implemented. 4. How great the potential benefits of the idea were. 5. To what extent the idea would help transition student rental properties to other uses. Strack referenced a summary of the brainstorming idea results included in the EDA packet. Ideas specific to the EDA include: 1. Working toward providing public transportation to surrounding communities as a means of attracting more residents. 2. Strengthening the commercial rental base within the Downtown as opposed to Highway 75; perhaps in former student occupied single family rentals. 3. Attracting more industry to the City to increase population available to rent units. 4. Connect employers /landlords to promote rental /ownership within the City. 5. Investigate whether or not rental housing market can attract students from St. Cloud. 6. Work with MTC to extend service area to St. Joseph to support affordable rental. Strack noted the WG is requesting the EDA review and comment on ideas from the WG relating to economic development, specifically, the viability and /or interest in pursuing such ideas. The Board discussed the provision of public transportation as a means of attracting more residents and how this function could relate to the EDA. Strack noted she had participated in informational meetings EDA Minutes — October 27, 2010 3 with representatives from Metro Bus and was aware of previous reports indicating demand for public transportation was not yet high enough to cashflow such service. The Board noted the recent expansion of Tri -Cap service to St. Joseph and the volume of bussing offered by the CSB /SJU. The EDA Board recommended the City Council continue to monitor the demand for public transportation and related ability to cashflow such service. The EDA discussed strengthening the commercial rental base within the Downtown as opposed to Highway 75 through the conversion of student rental single family uses to vacant commercial lots. The Board is concerned attempting to transition single family student rental units within the downtown but not along the previously developed Hwy 75 corridor would potentially be divisive within the business community. Consensus of the Board is to encourage the transition of single family rental units to commercial lots (by razing structures) if it makes sense within the context of the area and property owners would like to do so. The EDA noted that attracting more industry to the City is a primary goal of the EDA, to those ends, the creation of shovel ready sites continues to be pursued. The EDA views connecting employers /landlords to promote rental /ownership within the City as a good strategy but one which is to a certain extent already taken care of by word of mouth. The EDA views this idea as similar to others contained in other work areas within the evaluation matrix. Project Updates Wick introduced the agenda item and highlighted updates relating to: facilitation of a farm to 'school' program, vacating of former Cedar Street by Kay's Kitchen, initiation of concept planning for the Walz/Gateway property, and CEDS CIP Projects. Approval of Minutes. Chairperson Wick introduced the minutes from the October 27, 2010 regular EDA meeting. Motion by Skahen, second by Jacobson to approve the minutes from the October 27, 2010 regular EDA meeting. Motion approved 3:0. EDA Accounts Payable and Approval of Financial Reports. Wick introduced the topic. Accounts payable for the month totaled $2,514 and included monthly contract services. Wick then introduced the monthly financial reports. Motion Skahen, second by Jacobson to approve the accounts payable and monthly reports. Motion carried 3 -0. Next EDA Meeting Date. Wick inquired as to the date of the next meeting which is scheduled for December 22, 2010; if moved to December 15th the EDA will be able to speak with Ms. Lyn Halvorson from Winona Public Schools regarding farm to school successes. Motion Skahen, second Jacobson to move the regular EDA meeting to December le. Motion carried 3:0. Adjournment. Motion Skahen, second Jacobson to adjourn the EDA meeting. Meeting adjourned by consensus at 4:35 PM. 4Cynthia 4Smit ack ED A Director EDA Minutes —October 27, 2010