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HomeMy WebLinkAbout2011 [03] Feb 23CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, February 23, 2011 Present: EDA Board Members, Chad Davey, Steve Frank, Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: None. Also present: Colleen Petters and Phil Eisenschenk representing Millstream Shops and Lofts, and EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the February 23, 2011 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda. Wick suggested moving item number 5(a) up on the agenda for the next item. Motion by Skahen, second by Heinen to approve the agenda with the requested change. Motion carried 5-0. Request for Assistance: Millstream Shops and Lofts, Colleen Petters /Phil Eisenschenk. Chairperson Wick introduced the agenda item and the guests. Strack noted that at the August 25, 2010 regular EDA meeting the Board discussed temporary incentives available locally through the Minnesota Jobs Bill approved in April. One such incentive is temporary authority to use excess revenue for economic development purposes external to the district. The Board discussed several potential projects /uses for excess TIF revenue. The EDA directed Strack to follow up with Concrete Plus and Millstream Shops /Lofts regarding potentially taking advantage of available incentives. Jon and Colleen Petters, owners of Millstream Shops /Lofts have expressed an interest in using excess TIF revenue as a means of helping attract a suitable restaurateur to the building end -cap. At the November 24, 2010 EDA Board Members and Jon and Colleen Petters again discussed potential construction enhancements to the restaurant end -cap space which could assist in attracting a food service tenant. Pursuant to EDA direction at the October meeting, the property owners obtained price quotes for the installation of an exhaust hood at the premises. 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. At the November meeting, EDA Board Members noted a great deal of support for a unique dining opportunity being added to the end -cap and the desire to promote activity within the downtown 24 -hours a day as opposed to just during typical work hours. In addition, the EDA Board noted a restaurant occupant presented an opportunity to further capitalize on the volume of special event traffic at the College and that the addition of a unique restaurant could assist in promoting 'lingering' within the downtown. The Board also noted other potential uses for excess TIF revenue under the State Jobs Bill were possible. A motion was approved at the November 24, 2010 meeting in support of readying the restaurant space for occupancy with the understanding (1) the recommendation would not be forwarded to the City Council until construction 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 stated that quotes were obtained for installation and purchase of a hood to assist in completing construction of the restaurant end cap. The estimate exceeds $20,000. The Petters are working with two potential lessees for the space. Petters noted the construction would be completed by local contractors. Petters also stated that in the event the installation doesn't result in a lessee that they would be willing to enter an agreement to repay the EDA's investment. Frank referenced an email from Mike McDonald, a St. Joseph resident, who had submitted two opinions regarding the project: 1. McDonald opined it was not in the best interest of the city to first pay for the exhaust fan and hope that will be enough to possibly attract a restaurant but rather that a signed lease, at a minimum should be required prior to assisting with readying the site. McDonald questioned the adequacy of existing off - street parking in conjunction with a potential for a restaurant tenant occupying the end cap facility. McDonald suggested the EDA review parking. McDonald opined it would be unfair to the Petters to lead them to believe that a restaurant is possible by the EDA suggesting their incentives only to have the Planning Commission say it won't work. Strack addressed McDonald's opinion regarding off - street parking noting Millstream Shops /Lofts was developed as a planned unit development, essentially development by contract. Parking for the entire development was addressed when the PUD was considered. As such parking calculations based on occupancy, including 25% of the commercial space being used for a restaurant, were tabulated and approved in the PUD agreement. The Development Agreement in place includes reference to required parking and includes the restaurant space. Therefore, the provision of parking for the entire site has previously been resolved and is not subject to further review unless the PUD is revised or amended. Petters noted that two strong potential lease candidates exist at this time. Petters further noted that participation by the EDA on a limited time basis is definitely assisting in piquing the interest of potential lessees. Davey questioned what would happen to the EDA's investment in the facility if it was to participate in the project only to be paid back in the future, if it would need to be sent to the county for re- distribution. Strack noted she did not know the answer but would research and bring information back. Motion Skahen, second Davey to recommend the City Council approve expenditure from EDA to provide for construction associated with and installation of equipment for the end cap facility not to exceed $20, 000 for Millstream Shops and Lofts. Motion carried unanimously 5:0. All guests departed the EDA meeting. Approval of Minutes. Chairperson Wick introduced the minutes of the December 15, 2010 regular EDA meeting and the December 15, 2010 joint EDA/City Council meeting. Motion Wick, second Skahen to approve the minutes from the December 15, 2010 regular EDA meeting and the December 15, 2010 joint meeting. Motion approved 3:0 with Davey and Frank abstaining as they were not present at the December meetings. Chairperson Wick introduced the minutes of the January 26, 2011 regular EDA meeting. Motion Wick, second Skahen to approve the minutes from the January 26, 2011 regular EDA meeting. Motion approved 3:0 with Davey and Heinen abstaining as they were not present at the meeting. EDA Minutes — February 23, 2011 2 Chairperson Wick introduced the minutes of the February 15, 2011 special EDA meeting Motion Frank, second Davey to approve the minutes from the February 15, 2011 special EDA meeting. Motion approved 4:0 with Heinen abstaining as she was not present at the meeting. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable in the amount of $2,514.00 and January financials. Motion Skahen, Second Heinen to approve accounts payable in the amount of $2,514 and the January monthly reports. Motion carried 5:0. Farm to Cafeteria Program Facilitation. Wick introduced the agenda item. Strack noted that at the January meeting the EDA heard via conference call from Lyn Halvorson (Winona Public School) regarding how she became involved in a farm to school purchasing pool with some assistance by an area economic development organization. Strack mentioned that as a precursor to forthcoming discussion regarding a farm to cafeteria program, the information packet contained information relating to the St. Cloud Sustainability Project and a list of the 50 closest organizations involved in "Minnesota Grown ". Strack requested direction from the EDA regarding possible next step for this project. The EDA noted that the concept of farm to school or farm to cafeteria or farm to institution was definitely fitting for St. Joseph and in addition to providing better nutritional value, such a program was beneficial to the local economy. As such the EDA suggested organizing a meeting with local producers, the food cooperative, local food processors, and local institutional and restaurant purchasers. The purpose of the meeting will be to share information and to facilitate interaction between stakeholders in local food production /use economics. The EDA suggested planning an event for early April and starting with an informational speaker followed by discussion regarding needs /barriers to starting a local farm to cafeteria program. Strack will contact local school districts, Minnesota Land Stewardship Program, CSB, SJU, local restaurants, food Co -Op, local producers, U of M Extension Service, and the Lab School regarding scheduling a meeting. Flyers will be developed for distribution. EDA members will stay updated by email. Next Meeting Date. Wick introduced the agenda item noting he was unavailable for a meeting on March 23rd. The EDA discussed the fact that there are five Wednesdays in March. Motion Skahen, second Davey to move the March 23rd regular meeting to March 3e. Motion carried 5:0. Board Member Announcements. Wick noted that 2011 will be a transition year for the St. Cloud Area Economic Development Partnership. The SCAEDP will be moving from a 501C(4) organization to a 501C(3) organization. The transition will encourage much more additional private investment in economic development and greatly reduce the SCAEDP's reliance on public sector dues. Wick noted the City Council had not yet decided on payment of 2011 dues. Skahen requested Mayor Schlutz attend an EDA meeting to discuss goals. Wick noted this would be discussed at the March 4'h Council /staff retreat. Frank inquired as to status of discussion regarding public information. Strack noted item is to be discussed at March 4th Council /staff retreat. Specific items to address included the City's data practices policy. Strack has consulted colleagues who report leads tracked by code and not released publicly. Other potential follow -up measures include requesting an opinion for the City Attorney (after Council /staff retreat) and following that submitting a request for opinion to the Minnesota Information Policy Analysis Division. EDA Minutes - February 23, 2011 3 Adjournment. Meeting adjourned by consensus at 4:30 PM. Cynthia Smith - Strack EDA Director EDA Minutes — February 23, 2011