Loading...
HomeMy WebLinkAbout[04] Approval of the MinutesCITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes —Wednesday, March 30, 2011 Present: EDA Board Members, Chad Davey, Steve Frank, Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: None. Also present: St. Cloud Times Reporter TaLeiza Calloway, Cone Castle's Jason Neurenburg, Cone Castle's Aaron Holthaus, St. Joseph Finance Director Lori Bartlett, St. Joseph Food Co -op Vice President Jeff Engholm, St. Joseph City Administrator Judy Weyrens, Colleen Petters with Millstream Shops /Lofts, Scott Condit with Whitehorse Restaurant, St. Joseph Mayor Richard Schultz, and EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the March 30, 2011 regular meeting of the St. Joseph EDA to order at 3:04 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Skahen, second by Davey to approve the agenda with the requested change. Motion carried 5- 0. Cone Castle, LLC (Marie Loso Property): BFA Grant and Asbestos Abatement Assistance. Chairperson Wick introduced the agenda item and requested an overview of the item by Strack. Strack noted Jason Neurenburg and Aaron Holthaus representing Cone Castle, LLC were at the meeting. Cone Castle, LLC had signed a purchase agreement for the property at 118 1st Avenue NW (Marie Loso property). The developer's intend to raze the existing residential structure and build a new, small- footprint ice cream /food stuff retail facility. The facility will be designed to primarily accommodate walk up traffic with supplemental business from a drive thru. The investment group has hand - picked the current site for the intended use. The investment group has submitted an application to the Business Facade Architectural Grant Program related to building design, construction, and landscaping installation at the subject property. The EDA's 2011 capital allocation included funding for BFA Grant applications and other revitalization efforts. The remaining balance is sufficient to cover additional BFA application. BFA program oversight and authority for grant approval was delegated to the EDA. Neurenburg and Holthaus provided additional background information to the EDA relating to the project concept and emphasis on pedestrian and vehicular patronage. The menu will be specialty and unique in the mid -west. There will be no deep -frying or similar preparations. Foods and ice cream will be served in a cone shaped crust. Basic menu for startup has been developed using student input from CSB. Hope to open in July of this year. May be open year round or seasonal as is the Dairy Queen on Division in St. Cloud. EDA Member Frank inquired as to whether or not the EDA is exhausting its budget by participating in so many development activities. In addition, he questioned whether or not the BFA grant was solely for exterior improvements and how the pending application met the requirements of the BFA grant. Chairperson Wick explained the BFA grant is for exterior design, construction, or landscaping or any improvement visible from a public right of way. Page 3 of 27 Frank inquired as to whether the facility would be open year -round and how many employees would be hired. Holthaus explained the facility would attempt to stay open year -round but could be closed briefly like the Dairy Queen in St. Cloud if the numbers just didn't work. Holthaus stated one full time Manager and approximately 12 part-time employees would be needed for the facility. Motion by Davey, second by Skahen to approve the BFA Grant Application. Motion carried 5:0. Wick noted there were two items on the agenda related to Cone Castle. The second is a request to assist with increased demolition costs due to asbestos contamination at the subject site. Strack stated the Loso dwelling is confirmed to have asbestos in the siding and caulking. Asbestos removal increases the cost of demolition of the existing dwelling. Cone Castle is seeking $6,500 to assist with the demolition /abatement. Please find additional information attached relating to costs associated with demolition. At this time the EDA has approximately $17,000 remaining in its "Revitalization" capital improvement line in the 2011 budget. The $6,500 contribution to demolition would leave $10,500 for other projects such as landscaping at CSAH 75 /CR 2. Davey inquired as to why a quote for asbestos removal and an estimate for demolition /removal of the structure were both included in the EDA packet. Strack noted the both estimates were included to give EDA Members context for decision making. Frank inquired as to where the asbestos material was ultimately disposed; Nuererburg noted he was not sure but the contractor proposing to remove asbestos is widely recognized as a specialist in such matters and the process was heavily overseen by MPCA. Motion Skahen, Second Heinen to recommend the City Council authorize the expenditure from EDA designated funds in an amount not to exceed $6,500 and payable upon receipt of invoice from the contractor following job completion. Motion carried 5:0. Strack noted the item would now go to the City Council at the April 7th meeting. Minnesota Street Market (Former Loso Store) Chairperson Wick introduced the agenda item. Strack noted Jeff Engholm on behalf of the St. Joseph Food Cooperative submitted an application to the Business Fagade Architectural Grant Program to assist with the design and construction of exterior improvements and signage to the structure at 21 West Minnesota Street commonly known as Loso's Store. The improvements are related to the building opening as "Minnesota Street Market" the retail component of a local food cooperative recently established. The EDA's 2011 capital allocation included funding for BFA Grant applications and other revitalization efforts. The remaining balance is sufficient to cover additional BFA application. BFA program oversight and authority for grant approval was delegated to the EDA. Motion Davey, Second Skahen to approve a BFA matching grant in an amount up to $1,000. Motion carried 5.0. Chairperson Wick noted the second request from the Minnesota Street Market was for a loan through the EDA Revolving Loan Fund. Strack noted The EDA received an application for the RLF Program from the St. Joseph Cooperative (d.b.a. Mainstreet Market) and Jeff Engholm. The Cooperative will be leasing space at the former Loso Grocery Store from property owner Prego, Inc. Jeff Engholm was at the EDA meeting to discuss the loan application. The loan will assist in the purchase of a freezer /cooler, reconditioning of the wood floor, purchase of a point of service system, and purchase of inventory for the Mainstreet Market which is to open in June of this year. The equipment, inventory, and receiveables will be used as security for the loan. The project involves equity (cash) held by the cooperative. The project envisions adding one full time job and several part time jobs within two years. Engholm provided an explanation of the project and distributed detailed estimates for the items intended to be purchased with RLF dollars. In addition, Engholm provided background information on the property, EDA Minutes - March 30, 2011 Page 4 of 27 2 the Cooperative, and the lease arrangement. Engholm noted that at a kick -off event for the Market, over 300 people visited the former Loso Store and that 60 members joined the Cooperative that day. Engholm also noted that he has discussed leasing additional space within the building to be used as a thrift/consignment shop concept with another organization within the community. Engholm noted the Cooperative and thrift store have reached out to all groups, ages, and incomes and that the intended shops are unique and designed to bring pedestrian traffic downtown. Motion Heinen, Second Skahen to accept the submittal of the application and to authorize a loan subcommittee consisting of Davey and Skahen together with administrative personnel to review the application and to authorize /direct the preparation of loan documents related thereto. Motion approved 5:0. Motion Heinen, Second Skahen to authorize participation of EDA in a joint meeting with the City Council to be scheduled for April 21, 2011 at 7 p.m. The purpose of the joint meeting will be multifaceted but include review of the loan subcommittee's recommendation and potential approval of the loan. Motion carried 5:0. Introduction /Discussion with Scott Condit: Whitehorse Restaurant (Millstream Shops End Cap). Chairperson Wick introduced the agenda item and the guests. Colleen Petters updated the EDA on the status of a letter of intent with Whitehorse Restaurant to lease the end -cap space /patio available at Millstream Shops /Lofts structure. Bartlett inquired as to the nature of the restaurant. Condit noted the Whitehorse would be similar to the establishment in St. Cloud, fine dining, a diverse menu, open for lunch through 1 a.m. Condit stated the restaurant concept was not like a college bar but rather a dining experience offering seafood, global favorites, steak, and a full service bar. Davey inquired as to the anticipated number of employees. Condit estimated 15 full time staff. Frank asked about music and the potential for that to move outside onto the patio. Condit noted that although occasional live bands perform in their St. Cloud location, the company was moving away from the concept. He did not anticipate live bands would perform at this location. Frank inquired as to the perceived significance of tax benefits and employment increases caused by the restaurant. Strack opined that the major benefit of the restaurant in this location was the potential to draw people, especially visitors to special events, from the College, across Minnesota Street and into the Downtown. Strack noted that urban planning /economic studies have found the minimum amount of time people need to spend in a Downtown for profitable business environment is 1.5 hours. The Whitehorse along with other items on the agenda and existing establishments would give people a reason to linger in the Downtown for that critical time period. Davey inquired as to the timeframe for the project. Condit noted there are still many details that need to be worked out but occupancy was hoped for by the end of summer. The EDA Board thanked Petters and Condit for attending the meeting and sharing information. St. Joe Meat Market BFA Request and TIF Update Wick introduced the agenda item. Strack noted Harvey Pfannenstein, Owner of St. Joe Meat Market submitted an application to the Business Facade Architectural Grant Program. A copy of the application was included in the meeting packet. The BFA application is for an expansion of the existing structure 26 1g` Avenue Northwest. The planned expansion will increase the building size from 4,222 s.f. to 7,224 s.f. (3,002 sf addition). In 2010 the EDA approved a BFA request for this project relating to architectural designs. The EDA reimbursed the Applicant for $1,000 of a $15,000 invoice. This year's application is related to the actual construction of the addition. The EDA invited Mr. Pfannenstein to submit the BFA application. The construction cost is estimated at $350,000. EDA Minutes — March 30, 2011 Page 5 of 27 3 Davey inquired as to whether or not the EDA had authorized use of the BFA grant more often than once per project. Strack noted the EDA when developing the BFA program specifically discussed re- application to the BFA program and intentionally did not include a prohibition on re- application. In fact, the EDA supported the concept of re- applying since it meant additional investment in the community. Mayor Schultz stated the Lions Club was paying for the canopy at the site. Motion Wick, Second Davey to approve the BFA application. Motion carried 5:0. Chairperson Wick noted a public hearing by the City Council has been set for Thursday, April 21st at approximately 7 p.m. As is the case with previous public hearings for TIF, the EDA is requested to attend the EDA meeting to receive information, answer questions, and provide a recommendation to the City Council at the meeting. In addition, a public hearing to approve a spending plan for TIF 1-4 was also set for the same date /time. The spending plan included both the Meat Market expansion and construction at Mill Stream Shops for Whitehorse. Motion Skahen, Second Heinen to authorize and call for a joint meeting for April 21, 2011 at approximately 7 p.m. to conduct hearings for TIF 2 -2 and a spending plan for TIF 1 -4. Motion carried 5:0. Farm to Institution Program Facilitation Wick noted the meeting was running long and suggested moving through the next few items quickly with more discussion at the April meeting. Strack noted farm to school facilitation was moving forward. She was looking for a large group meeting at some point in the future when two specific speakers were able to attend an event. Landscaping CSAH 75 /CR 2 Wick introduced the topic. Strack noted the Park Board did not discuss the issue at its meeting earlier in the week. Therefore, it seemed as though delaying discussion on the item until next EDA meeting would be prudent. Frank inquired as to who picked the properties in the plan and why a specific property was not included. Strack noted the Scenic Specialties and EDA staff walked the route and looked for potential locations that were conducive to promoting lingering. The property identified by EDA Member Frank was not included at that time but could be included in the future. The EDA reached consensus to delay discussion until the April EDA meeting. Approval of Minutes. Chairperson Wick introduced the minutes of the February 23, 2011 regular EDA meeting. Motion Heinen, Second Davey to approve the minutes from the February 23, 2011 regular EDA meeting. Motion approved 5:0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable in the amount of $2,629.17 for MDG services and 412.50 to David Drown (Traci Ryan) and February financials. Motion Frank, Second Heinen to approve accounts payable and the February monthly reports. Motion carried 5:0. Bartlett explained a need to transfer $13,100 from the EDA's capital budget to the operations budget to address coding limitations in previous years. Motion Wick, Second Heinen to authorize transfer of $13,100 from the EDA CIP fund to the operations fund to address previous coding limitations in previous years. Motion carried 5.0. EDA Minutes - March 30, 2011 Page 6 of 27 4 BFA Disbursement to Millstream Shops. Wick introduced the agenda item. Strack noted that at the November 24, 2010 regular meeting the EDA approved a Business Fagade Architectural Grant Program application submitted by Colleen Petters of Millstream Shops /Lofts. The BFA grant request related to a 550 sf retail space available at Millstream Shops. The approved BFA application was to install a plate glass door to make a 550 sf retail space available for lease space. The door has been installed at a cost of $2,517.00. Petters had dropped off a signed contract for the improvement and was requesting reimbursement. Motion Heinen, Second Davey to approve the BFA Disbursement in the amount of $1,000. Motion carried 5:0. Discussion with Mayor Schultz Wick introduced the agenda item and Strack noted that she and Mayor Schultz had met on previous occasions and that the EDA had requested the Mayor attend a meeting to discuss a variety of subjects. Schultz asked for additional information as to why the EDA was pursuing farm to school /institution facilitation. Strack noted that there were economic and social benefits to consumption of locally produced food including good quality, healthy food consumption, decreased transportation costs /green house gas emissions, and keeping local dollars re- circulating in a local manner versus leaking out to other regions, states, etc. Heinen stated that the benefits of the program exceeded the value of good food, that the social implications were tremendous. Skahen noted talk of the program was generating excitement in the community, even as evidenced by discussions at his business. Frank noted spill over from the project and an opportunity to promote synergy among a number of current efforts. Skahen inquired as to the Mayor's vision of the EDA and if the organization was indeed in need of change, what that change could be. Schultz spoke of a need for the EDA to communicate better with members of the general public. Schultz opined the EDA had a public perception problem, that constituents were of the opinion that the EDA was a secretive body. Heinen inquired as to whether the public perception problem should be addressed through proactive communication. Schultz indicated that he thought that would be beneficial. Davey inquired as to how the Council communicated effectively. Schultz indicated the Council was also in need of a plan for better communication. Frank noted the items were to be discussed at a work shop the following day. Board Member Announcements. None. Adjournment. Meeting adjourned by consensus at 5:15 PM. Cynthia Smith - Strack EDA Director EDA Minutes - March 30, 2011 Page 7 of 27