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ST. JOSEPH EDA: ANNUAL
REPORT
St. Joseph EDA
City of St. Joseph
12/2011
ST. JOSEPH EDA: ANNUAL REPORT 2011
EXECUTIVE SUMMARY
The St. Joseph Economic Development Authority (EDA) continued to promote business interests within the
City in 2011. Significant challenges to economic growth continue to persist in a prolonged fashion, as a
recovery from the Great Recession is slow. However, some significant progress in commercial building
activity occurred in 2011. In addition, the cultivation of new business expansion and development within the
community indicated 2012 is likely to continue successful efforts to diversify the tax base. The EDA/EDA
Director have /are working with five solid leads intending to add commercial value to the community in 2012,
including one lead that has been cultivated since 2001.
This report documents the EDA's activities over the previous year and the EDA's progress toward the
creation of new wealth, 'setting the table' for new business opportunities, providing assistance to businesses
to spur economic investment and job creation locally, and to conduct outreach to business contacts.
Following is a summary of EDA activities in 2011:
• As City leaders are aware, the global economic downturn lead by declines in the construction sector
and resulting in decreased demand for new housing starts has proved to be difficult to overcome.
However, most leading economic indicators and leading economists believe a double dip recession
to be unlikely as a painfully slow but increasingly stable recovery proceeds. That said, warnings
persist from economists regarding a fragile and fluid uptick in economic activity as job growth
throughout the nation and in Central Minnesota continues to be slow. Consumer spending is showing
signs of rebounding, but at the same time the value of housing continues in certain areas to
depreciate. In any case it's prudent to expect building permit trends will continue to slowly turn
around, overall economic performance will be continue to be tentative, and higher than normal
fluctuations in employment will continue to plague the area. The period of economic expansion
starting in 2011 is expected to continue to impact the EDA's activity in bringing /touting new
investment in the community in the form of rooftops and population growth. It is noted new housing
starts have rebounded slightly but are not anywhere near peak years of 2005 and 2006.
Unemployment last year at this time (January 2011) was lower than the state average but slightly
higher than other metropolitan statistical areas, trends which continues for now. Unlike last year
2009, as a whole, the EDA and /or staff are aware that fewer local businesses are struggling and that
more businesses are seriously considering expansion in 2012.
• The EDA addressed four basic functions throughout the year: organizational development,
infrastructure development, business development, and market development. Workforce
development was not pursued as primary activities are conducted by the Mn. Department of
Employment and Economic Development through the 50 -plus Workforce Centers across the state.
City of St. Joseph 1 EDA Annual Report - 2011 2
ST. JOSEPH EDA: ANNUAL REPORT 2011
• Under the auspices of "Organizational Development' the EDA met 14 times throughout the year,
reviewed the structure and delivery of economic development services within the City of St. Joseph,
and pursued goals /work items identified in the previous annual report.
• Under the auspices of "Infrastructure Development" the EDA pursued a gateway program (I-
94/CSAH 2 corridor), a street/landscaping connections between the Wobegon Trail and Downtown,
the formation of a Rental Housing Working Group, the creation of 'shovel ready' lots, concept
planning for future commercial /industrial areas, the creation of vacant lots in the Central Business
District, and the extension of municipal utilities to the Parkway Business Center, the Gateway
Property, and the Walz Property.
• Under the auspices of "Business Development" the EDA cultivated /followed up with 27 existing
business leads and thirteen new leads (thoroughly vetted), EDA/Director attended
meetings /distributed information to /and conducted research for 33 businesses, provided technical
assistance to 20 business contacts, pursued a business cluster strategy centered on farm to
institution principles, and, responded to: five inquires regarding tax abatement; eight inquiries related
to tax increment financing; ten inquiries related to the BFA program; 11 inquiries related to the
Revolving Loan Fund; six inquiries for business planning assistance; five inquiries for SBA
assistance; three inquiries regarding the Minnesota Investment Fund; promoted ten opportunities to
use the Mn. Jobs Bill incentives (funded two); and, four opportunities to use the Minnesota Business
Public Infrastructure grant program.
• The past year (2011) featured the issuance of four Business Facade Architectural Grant Program
grants (not to exceed $1,000) for various projects within the downtown and highway commercial
corridor.
• The St. Joseph Meat Market completed an expansion.
• Cone Castle began construction after demolition of an existing structure.
• An end -cap at Millstream Shops /Lofts was readied in part for a restaurateur.
• The former Loso's Grocery Store reopened as Minnesota Street Market with the assistance of the
EDA.
• Projects confirming a decision to move ahead in 2012 include the expansion of the Precise
Refrigeration, American Manufacturing, the expansion of the Army Reserve facility, further food
options, and work to ready a parcel in the downtown for revitalization.
• A few smaller projects have the potential to maximize the tools available to City's within the 2010
Minnesota Jobs Bill. Tools included in the bill expire in June /July 2012 unless extended by the
legislature.
• The EDA has took receipt of concept plans for land owned by GTI Properties and Walz Properties,
LLC. The concept and a resulting animation are featured on the City's website.
• The EDA/staff continued to market St. Joseph to commercial /industrial prospects. An "idea
incubator" featuring information on economic development activities and providing the public an
opportunity to submit ideas to further economic development was added to the City website in 2011.
Listings of available lease and purchase property and facilities were managed on the City and
MnPRO websites.
• The EDA/staff continues to promote downtown redevelopment. Landscaping /streetscaping planning
was discussed with the Park Board in conjunction with the installation of a trail /sidewalk through
property at the water tower and adjacent to College Avenue. Goals of the effort are to tie the
City of St. Joseph 1 EDA Annual Report - 2011 3
ST. JOSEPH EDA: ANNUAL REPORT 2011
following areas together with meaningful visual linkages: Wobegon Trail Center, College Avenue,
Minnesota Street, and Minnesota Street to the west toward new CSAH 2 areas together.
• The EDA's 2012 capital projects approved for 2012 include $28,100 for revitalization and
development efforts which may include BFA grants, demolition grant program, asbestos abatement,
streetscape /landscape design /implementation, and rental conversion.
• The EDA Director presented information to the Chamber of Commerce on two different occasions
and provided information /interviews to local media outlets on several occasions.
• EDA continues to distribute information to project leads, review land use standards /provide advice on
land use standards, participate in staff meetings and projects, and retain inventory of parcels.
• Moved forward on 2011 goals including proactive participation in preparing for development adjacent
to new CSAH 2, marketing St. Joseph, reviewing local impact of residency policy changes, and
cultivating investment within the community.
• Efforts at outreach to industrial establishments continues to be plagued by a severe shortage of
shovel ready industrial lots and the lingering effects of the recession which began in late fall of 2007.
• Goals for 2012 include, but are not limited to (work items related to each goal are included in the
report detail):
1. Extension of sanitary sewer and drinking water to new CSAH 2 (Infrastructure Development
Function).
2. Manage response to economic impact of four -year residency requirement at CSB /SJU by
working on SCDP grant (Business Development and Market development function).
3. Market St. Joseph opportunities within greater Minnesota and market available commercial
and industrial lots, land, lease space, buildings, etc. (market development function).
4. Investigate and pursue proactive measures to secure and provide for shovel ready industrial
sites and encourage build -out of Gateway Commons (infrastructure development function).
5. Continue to work with property owners seeking development of land adjacent to proposed
CSAH 2 (infrastructure and business development function).
6. Work with Park Board on installation of trail /sidewalk near water tower.
7. Implement capital improvement projects (organizational development, infrastructure
development, and business development function).
8. Respond to inquiries and continue proactive follow up of viable leads /prospects (business
development function).
9. Continue to pursue revitalization within the Downtown (infrastructure and business
development function).
10. Present information and updates to the public (market development function).
City of St. Joseph J EDA Annual Report - 2011 4
ST. JOSEPH EDA: ANNUAL REPORT 2011
2011 OFFICE APPOINTMENTS:
The following appointments to offices were made at the January 26, 2011 EDA meeting:
Chair: Dale Wick (Council Member, term expires with Council Term, unless re-
elected).
Vice Chair: Tom Skahen (At -large representative; term expires January 1, 2013).
Treasurer: Tom Skahen (At -large representative, term expires January 1, 2013).
Secretary: Carolyn Yaggie- Heinen (At -large representative, term expires January 1,
2012).
Member at Large: Steve Frank (Council Member, term expires with Council Term, unless re-
elected).
Steve Frank and Chad Davey joined the EDA in 2011. Frank took the oath of office on January 26; Davey on
February 9. Frank's term is coterminous with his Council seat; Davey's term will expire in 2017.
MISSION:
The mission of the EDA is to provide a professional municipal economic development program that assists
industrial and commercial development activities which minimize impacts to the environment, transportation
system, municipal water /sewer use, and financial resources for the City of St. Joseph.
ECONOMIC DEVELOPMENT DEFINED: (IT'S A PROCESS, NOT AN EVENT)
Many think economic development is simply a hands -on profession where the economic developer promotes
sites, visits businesses, administers revolving loan funds, and so forth; in reality it's a much more
comprehensive but ill- defined endeavor. At the same time, if you ask ten people for a definition of economic
development you will most likely receive ten different answers:
▪ It's about jobs and attracting /retaining businesses.
* It's about improving the quality of life and economic well -being of community members.
* It's policies or activities that promote a diverse and stable tax base.
N► It's organizational capacity, business development, market development, workforce development,
and infrastructure development.
�► It's about making a community a better place to live and work.
•/ It's about infrastructure investment, roof -tops, and educational institutions.
In reality it's all those things and more. Economic development can encompass anything governments do to
cultivate and nurture a healthy economy. A fundamental challenge for economic development professionals
is to communicate specific and tangible outcomes of economic development strategies to policymakers and
the public.
As indicated by the American Economic Development Council, "economic development issues often
dominate policy debates due to citizens' tendencies to evaluate public officials' success by how well the
economy is faring. If new businesses are opening, jobs are being added, stores are remaining open, then
politicians' tenures are likely to be extended, if not the opposite is true ".
Economic development is also significant because local policy debates relating to fees, taxes, regulations,
and so on often become debates over economic development. One of the first questions asked by policy
City of St. Joseph 1 EDA Annual Report - 2011 5
ST. JOSEPH EDA: ANNUAL REPORT 2011
makers and the public is whether or not local policies harm the area's business climate and impair private
investment.
In addition, economic development tasks and results are shaped by public policies — what infrastructure gets
funded, what zoning standards apply, tax structures, grants, and many other decisions impacting the
business climate. The implication is that non - competitive business climates result in failure to attract or grow
firms /jobs. Business climates are affected by a host of issues: land, labor, taxes, regulations, quality of life,
attitude toward business, education, infrastructure, taxation, available incentives (tax rebates, loans, grants),
and business advisory services.
For these reasons, economic developers can't just focus on business retention and expansion or business
recruitment. Instead there scope of operation must encompass much more. For example, special initiatives
ranging from improving local amenities (e.g., downtown revitalization, quality of life amenities) to ensure
adequate infrastructure is available (shovel ready Tots, municipal services, adequate capacity) to nurturing
entrepreneurship to developing relationships with economic developers also active in the region. Successful
economic developers must also market their location, promote their assets /opportunities, and respond to
public concerns.
CORE FUNCTIONS AND STRATEGIC DIRECTIONS — ST. JOSEPH EDA:
The St. Joseph EDA, as a driving force for economic development, pursues the following core functions and
strategic directions:
• Organizational Development (14% of staff time 2011 — January to November; in 2010 it was 19 %)
• Infrastructure Development (3% of staff time 2011 — January to November; 10% over the same
period last year)
• Business Development (78% of staff time 2011 — January to November; last year 64 %)
• Workforce Development (as was the case last year zero staff time 2011 — January to November —
this is a Mn. DEED function)
• Market Development (5% of staff time 2011 — January to November; 7% over the same time period
last year)
Additional information regarding core functions of the St. Joseph EDA and the how those relate to activities
within 2011 follows.
FIGURE 1.1A
PERCENTAGE OF TIME SPENT ON CORE FUNCTIONS" 2010
_ _
it , I
It
j
Organizational Development * Infrastructure Development
• Business Development to Market Development
City of St. Joseph 1 EDA Annual Report - 2011 6
ST. JOSEPH EDA: ANNUAL REPORT 2011
FIGURE 1.1B
PERCENTAGE OF TIME SPENT ON CORE FUNCTIONS" 2010
• Organizational Development • Infrastructure Development
■ Business Development ■ Market Development
Figures 1.1A and 1.1B illustrate a slight shift in focus over the past year. More time was spent on business
development in 2011. Consequently Tess time was spent on infrastructure and market development in 2011.
The shift is indicative of increased commercial construction /EDA projects in 2011 with secondary impacts of
decreased public spending (infrastructure development) and the disbanding of the St. Cloud Area Economic
Development Partnership (market development) also noted.
City of St. Joseph 1 EDA Annual Report - 2011 7
ST. JOSEPH EDA: ANNUAL REPORT 2011
ORGANIZATIONAL DEVELOPMENT
The City of St. Joseph has an economic development organizational structure in place. The structure is
prescribed by Ordinance with day to day operation governed through EDA by -laws and administrative
(consulting) staff. The EDA works closely with the Planning Commission and City Council.
The EDA's Enabling Resolution provides for a separate political body established under Mn. Stat. 469.091
(City economic development authority) which is authorized to exercise economic development powers under
Mn. Stat. 469.090 to 469.108 which include powers under Mn. Stat. 469.001 to 469.047 (housing
redevelopment authority powers) and Mn. Stat. 469.152 to 469.165 (relating to industrial development
powers).
The St. Joseph EDA is limited by the Enabling Resolution in terms of issuing bonds or other obligations
(must be approved by the City Council); the EDA must follow the budget process (similar to any other
department); the EDA's development and redevelopment plans must be consistent with the City's
Comprehensive Plan (in St. Joseph all development/redevelopment plans created by the EDA are brought to
the City Council for approval as well, although not technically necessary); and, the EDA's proposed plans for
building development/redevelopment (if owned by the EDA) must be submitted for planning review by the
City.
FIGURE 1.2
EDA ORGANIZATIONAL STRUCTURE
E NOMc DtVfl CMT
scope c(
Operation
:: t a�, _ open
The St. Joseph EDA's activities in 2011 related to Organizational Development consumed 14% of allocated
staff resources and included:
1. Monthly EDA meetings (12 total)
2. Tsso special EDA meetings
3. Preparation of packets for EDA meetings
4. Preparation of EDA minutes
5. Updating of Official Minute Book
6. Attendance at City Council annual workshop
City of St. Joseph 1 EDA Annual Report - 2011 8
ST. JOSEPH EDA: ANNUAL REPORT 2011
7. Preparation and presentation of the annual report to the City Council
8. Presentations to various entities including a economic development forum sponsored by the St.
Cloud Daily Times, St. Cloud Economic Development Partnership events, and Chamber of
Commerce events
9. Goal setting and work plan administration /implementation
10. Review of Data Practices Act as it relates to business leads, existing policy embraced
11. Preparation and review of a request for proposals (RFP) document to solicit proposals from firms
with professional economic development experience at a municipal level to serve as St. Joseph
Consulting EDA Director.
12. EDA budget development and administration.
FIGURE 1.3
ACTIVITIES: ORGANIZATIONAL DEVELOPMENT
12 monthly
meetings illft
EDA budget
development Two special
and meetings
administration
•
Review of Data
Practices Act & EDA packet
EDA leads preparation
ORGANIZATIONAL
DEVELOPMENT
Proposal
soliciation for Attendance at
consuliting City y workshop
orkshop p
EDA Director and meetings
4
Goal setting &
work plan Record keeping
administration
Presentations
SC Times,
SCAEDP,
Chamberof
Commerce
City of St. Joseph 1 EDA Annual Report - 2011 9
ST. JOSEPH EDA: ANNUAL REPORT 2011
INFRASTRUCTURE DEVELOPMENT
If the support infrastructure system needed to deliver and produce goods and services is not in place,
economic development is unlikely to occur. Under this core function the EDA strives to 'set the table' for
development.
Infrastructure needed to support economic development includes: availability of and available capacity within
basic facilities and services (i.e. wastewater, drinking water, roadways, stormwater, schools, gas, electric,
telephony, etc.) and available sites for development (platted, improved, shovel ready lots) in each business
area (downtown and highway commercial) and industrial area.
The St. Joseph EDA's activities in 2011 (January thru November) related to Infrastructure Development
consumed three percent of allocated staff resources, down from ten percent in 2010. The decrease is
indicative of decreased public infrastructure spending. Infrastructure development projects included:
1. Gateway program (CSAH 2/1 -94 and CSAH 75) elements, including participation in activities related
to business district land use standards, corridor planning (i.e. CSAH 2), development concepts (i.e.
Gateway Commons), softscape at 75 /College Avenue, and language relating to transportation
overlay corridors.
It is noted for the purposes of this discussion that gateways of the community are defined as major
roads leading into St. Joseph from other areas and entry ways into specific sections of the
community (e.g. downtown commercial versus highway commercial). The intent of the St. Joseph
EDA relating to gateways is to: (a) promote a positive and distinct image of the community and
encourage appropriate types of development which lend themselves to such an image; and, (b) to
enhance transportation functions of roadways; and to (c) foster community pride.
2. Implementation of downtown revitalization program elements, including:
a. Approaching Park Board regarding working together to implement a portion of a
street/landscape plan elements (College Avenue North of CSAH 75) created by Scenic
Specialties which attempts to:
i. Promote a consistent 'theme' in the public realm in landscape plantings, public
furniture, lighting, etc,
ii. Provide a connection between the Wobegon Trail and downtown St. Joseph,
iii. Soften the volume of cement/bituminous areas at the intersection of CSAH
75 /College and CSAH 75/CR133,
iv. Afford enhanced pedestrian respites when crossing CSAH 75,
v. Promote lingering by pedestrians within the downtown.
b. Rental Housing Work Group facilitation as authorized /directed by the City Council. It is noted
the purpose of the Work Group is to determine, examine, and report potential strategies to
transition student rental properties from previous occupancy levels to those experienced
post- change in CSB /SJU on campus residency requirements. The basic underlying question
to be examined is whether or not the public sector should get involved in transitioning rental
uses, and, if so to what extent.
c. Initiation, organization, and facilitation of a meeting with rental property owners on April 20,
2011. The purpose of the meeting was to hear about future plans for rental property, to
provide information on potential grant programs that could assist in transitioning student
rental property to other use(s), and to update rental property owners on the progress of the
rental housing working group.
d. Initiated discussion with Stearns County HRA regarding an application on behalf of the City
of St. Joseph to the Small Cities Development Program for owner occupied and renter
occupied dwellings. This work item included organization, advertising, and facilitation of a
City of St. Joseph 1 EDA Annual Report - 2011 10
ST. JOSEPH EDA: ANNUAL REPORT 2011
meeting with home owners and rental property owners on September 21, 2011. This work
item culminated with the submittal of a $600,000 grant application to the Minnesota
Department of Employment and Economic Development (DEED) by Stearns HRA on behalf
of the City of St. Joseph /EDA.
e. Initiated discussion and meeting with Deanna Hemmesch of the Central Minnesota Housing
Partnership (CMHP). The purpose of the meeting with the Rental Housing Working Group
was to identify potential complementary grant/loan programs available to assist with
conversion of large student rental properties to alternate uses. This work item culminated in
the application by CMHP to DEED to be appointed as a "Program Administrator" for a re-
tooled rental rehabilitation low interest loan program. The CMHP application identifies
rehabilitation of "Campus Villas" as a potential loan project. A letter of support for the CMHP
from the EDA was also drafted /submitted as part of the grant application.
3. Creating "Shovel Ready" Sites for industrial use, highway commercial use, and downtown mixed
commercial /residential use. It is noted at this time there are only three available industrial properties
in the community, two of which are build to suit locations:
a. Worked with GTI Inc (Gateway Commons), Walz Development LLC, and Millstream
Development, in the development of concept plans for the area south of CSAH 2.
b. Developed program concept and guidelines for a demolition grant program. The program
goals are: to create vacant, shovel -ready lots in business districts, to remove principal
structures that have exceeded their useful life, and to remove impediments to redevelopment
of property. The program furthers a long- standing EDA goal to maximize /promote
redevelopment. The EDA favors participation (incentivizing) redevelopment because costs
are higher but resulting project is more cost - effective as it maximizes use of infrastructure
that already exists versus building new infrastructure. Redevelopment costs are higher
because:
• Existing structures increase purchase price, even if past useful life.
• Existing structures add development costs because demolition or rehabilitation are
required.
• Older buildings often have contamination issues such as lead paint or asbestos.
Specialized removal techniques increase project costs.
• Specialized construction techniques and designs are required so as to not
inadvertently negatively impact surrounding built -up area.
c. Work with East Central Regional Development Commission regarding establishment of
Federal EDA District. Initiate applications for federal funding for three projects: extension of
municipal utilities to new CSAH 2, installation of new collector street segment from new
CSAH 2 to Walz Development Property, and installation of improvements at Parkway
Business Center.
4. Updated Business Facade Architectural (BFA) Program standards.
City of St. Joseph 1 EDA Annual Report - 2011 11
ST. JOSEPH EDA: ANNUAL REPORT 2011
FIGURE 1.4
ACTIVITIES: INFRASTRUCTURE DEVELOPMENT
I- 94 /CSAH 2
Gateway
Program ` Approached
Park Board -
Updated BFA Streetscape
standards Plan
Implementatio
Work with Rental
ECRDC on Housing
CEDS Working
Application Group
INFRASTRUCTURE
DEVELOPMENT
Concept Meeting with
Planning Rental
Gateway and Property
Walz Property . Owners
Developed Request
Demolition Stearns HRA
Grant apply for
Program SCDP
9 ` Support $600,000
Central MN
Housing
Partnership
Loan App
City of St. Joseph 1 EDA Annual Report - 2011 12
ST. JOSEPH EDA: ANNUAL REPORT 2011
BUSINESS DEVELOPMENT
Business development efforts revolve around: business recruitment, entrepreneurial development, and
retention /expansion.
The St. Joseph EDA has an active business recruitment program including: information on the local business
climate, active lead follow -up, inventories of available properties, business basics and start up information,
business incentive programs, available & current demographic information (i.e. population make -up), general
market data (housing, employment, business mix, market potential, etc.), and information on current and
planned projects including market absorption rates and estimates of current square feet per use.
Efforts to encourage entrepreneurial development are enhanced by the creative class of people in /around
the College and University. Downtown revitalization efforts have been embraced by creative entrepreneurs
the results of which are becoming apparent in the built environment: A fundamental strategy moving forward
will be to work with local entrepreneurs with a demonstrated track record of success by supporting /nurturing
new projects. A second fundamental strategy will be to embrace and promote tolerance, diversity, and be
open to creative ideas.
The St. Joseph EDA Director implements an on -going retention /expansion /attraction (BREA) program: (1) as
leads are initiated, received, followed -up on, and pursued; (2) as available properties /establishments are
identified (toured) and promoted; (3) and as technical and /or financial assistance is sought.
In 2011 business development efforts (January thru November 2011) consumed 78% of allocated EDA
hours, up from 64% in 2010. The shift is indicative of increased business activity within the City. Time
dedicated to business development activities included:
1. Discussions, meetings, research, and information distribution for projects with 27 existing
business /property owners and /or contacts seeking project review, site plan review, technical
assistance, financial assistance, business management direction /assistance and similar items.
2. Discussions, meetings, research, and information distribution for projects with 13 new
business /property owners seeking project review, site plan review, technical assistance, financial
assistance, business management direction /assistance and similar items; (please note not all
inquiries arise to the 'new project status' as some are simply cold calls for information or
otherwise determined as non - viable.
3. Meetings with various property owners regarding an array of issues related to economic
development.
4. A business cluster strategy based loosely on 'farm to school' programming but broadened to
include processors (like the St. Joseph Meat Market) and institutions (CSB /SJU) continues to
build. The effort to bring Neighborhood Fresh Fare to Tables Everyday (NFFTE — nifty). The
EDA role is twofold: (a) to facilitate the formation of a NFFTE network (producers, processors,
end users) and (b) to attempt to match needs with resources. If successful the NFFTE effort will:
develop links between local farmers and intuitions, further the sustainability of our
community /area, and have a positive impact on our local economy and society.
The EDA is interested in NFFTE because:
✓ Spending on local food sources stimulates the local economy by re- circulating and
multiplying food dollars in the community
✓ Research proves local food systems are great economic engines
✓ St. Joseph has heavy institutional presence, potential processing capacity, & active
Farmer's Market (cluster strategy)
City of St. Joseph 1 EDA Annual Report - 2011 13
ST. JOSEPH EDA: ANNUAL REPORT 2011
✓ Presence of St. Joseph Food Cooperative and Minnesota Street Market as potential
catalyst for distribution, grading /insurance venue, and /or NFFTE network base
✓ Holistic approach to community sustainability: nutritional benefits, agricultural
land /scenic vista preservation, community supported agriculture, sustainable food
supply, strengthens of community connections /ties
A Successful NFFTE Program could include:
3 More local food featured in school and college meals
-3 Farmers' market salad bar
-4 Increased a la carte fare and choice
3 Food service visits to farms — farmer visits to cafeterias
-4 Harvest events
-4 School gardens
-� Processing of farm grown foods locally
The EDA's involvement with NFFTE will decrease in 2012 due to the fact the Board approved
assigning the project to the St. Joseph Food Cooperative, with Minnesota Street Market
Manager Kathleen McKenzie agreeing to take over project responsibility at the November 30,
2011 EDA meeting.
5. Promotion, administration, and implementation of technical and financial incentives for local
businesses including:
a. Tax abatement programs (five inquires in 2011)
b. Tax increment financing programs (eight inquiries in 2011; three moved ahead)
c. Business Facade Architectural Grant program (10 inquiries in 2011, four applications
approved with all projects completed or in progress)
d. Revolving loan fund (promoted to 11 projects in 2011; one loan issued)
e. Mn. Department of Employment and Economic Development programs:
1) Business Development Infrastructure Grant Program (four inquiries relating to
Parkway Business Center, Millstream Business Park, GTI Property, and Walz
Development Property.
2) Minnesota Investment Fund (three potential applications).
f. 2011 Minnesota State Jobs Bill opportunities (10 projects identified, two projects awarded).
g. SBA program parameters /contact information (five inquiries).
h. Technical information: business planning, business financing, business management, land
use planning, land use review.
City of St. Joseph 1 EDA Annual Report - 2011 14
ST. JOSEPH EDA: ANNUAL REPORT 2011
FIGURE 1.5
ACTIVITIES: BUSINESS DEVELOPMENT
Follow up with
Mn. Public 27 existing
Infrastructure t business Cultivation of
Grant: contacts 13 new
promoted to
Meetings,
research,
business
four prospects contacts
Mn. Jobs Bill
opportunities:
promoted to information
10 prospects; distribution to
•
two awarded 33 businesses
Technical
Minnesota
Investment
Fund : assistance to
promoted to 20business
Is
three projects contacts
•
Small
Assoc.
assistance
Business 1_L- LNT Business
cluster
: strategy:
five inquiries NFFTE
■
Business
planning,
finance, b Tax
managment r= x . abatement:
assistance: - __ _ - five inquiries
six inquiries. •
Tax increment
One loan financing:
issued eight inquiries;
if Revolving Facade • three projects
Loan Architectural
Program: ■ Grant: 10
promoted to inquiries, our
11 projects awards
City of St. Joseph l EDA Annual Report - 2011 15
ST. JOSEPH EDA: ANNUAL REPORT 2011
WORKFORCE DEVELOPMENT
Workforce development activities in Minnesota are generally coordinated by Workforce Development
Centers located throughout State and not at a municipal level. The 47 existing Workforce Development
Centers provide service to anyone transitioning from one job to another, from school to work and from
welfare to work situations. The Workforce Development Centers also provide service to those entering the
workforce for the first time. Services can be customized to meet specific needs of each individual. Workforce
development centers have historically pursued bottom -up (i.e. working with educational institutions to provide
relevant education for employment opportunities expected in the future) and top -down (i.e. working with
businesses to educate their workforce and /or working with businesses to identify types of worker skills
needed) strategies in an effort to link available educational opportunities with business needs.
City of St. Joseph 1 EDA Annual Report - 2011 16
ST. JOSEPH EDA: ANNUAL REPORT 2011
MARKET DEVELOPMENT
There are two ways a community can bring new dollars in: attract new individuals and /or attract new
organizations (e.g. businesses, non - profits, educational organizations, government, etc). The St. Joseph
EDA has historically focused primarily on attracting new organizations; however, the EDA has continued to
support attracting new individuals to the community as well.
The 2011 market outreach efforts (January thru November 2011) consumed five (5) percent of allocated
EDA hours compared to seven percent over the same time period one year ago. The shift in time allocation
is presumed attributable to the disbanding of the St. Cloud Area Economic Development Partnership. Time
dedicated to marketing activities included:
1. A key marketing tool utilized by the EDA is the City's website. In 2011 an 'idea incubator' was added
to the community development section of the website. The 'idea incubator':
a. Defines economic development;
b. Outlines what the St. Joseph EDA does; and,
c. Solicits public input regarding economic development.
2. A webpage dedicated to the "Gateway Commons" concept, including a design /concept animation,
was posted. The EDA assisted financially in the development of the concept design.
3. Other EDA "One Stop" information and "Business Toolbox" pages were updated, including
information about:
a. How to evaluate a business opportunity
b. Choosing a business organization
c. Licensing and permitting information (federal, state, and local requirements)
d. Zoning and site plan review information and resources
e. Sites available in St. Joseph
f. Technical and financial assistance available through the EDA
g. Advantages of doing business in St. Joseph
h. Advantages of doing business in Minnesota
i. Links to proformas and business plan templates
4. The information contained under the "Community Development" heading on the City of St. Joseph
website is updated on a consistent basis.
5. The EDA Director was the featured speaker at St. Joseph Chamber of Commerce meetings in March
and November.
6. Window clings promoting the EDA's involvement in projects were designed, ordered, and distributed.
7. A development sign promoting the EDA's involvement in projects was designed, created, and is now
displayed at the Cone Castle site. The sign is re- usable.
City of St. Joseph I EDA Annual Report - 2011 17
ST. JOSEPH EDA: ANNUAL REPORT 2011
8. The EDA Director regularly submits information for the City newsletter.
9. The EDA Director regularly does business in town so as to conduct market outreach and inquire as
to the state of business.
FIGURE 1.6
ACTIVITIES: MARKET DEVELOPMENT
Website
Maintenance
Articles in City Created 'idea
Newsletter Incubator" page for
website
11
Business 11 C new page
Busin
stop ping to IVIARKET for "Gateway
conduct outreach and Commons" concept.
business status D E� T . EDA participated in
design
Presentations to EDA window clings
Chamber (March & designed, ordered,
November) and distributed
Re- usable EDA 111110111' developmentsign
designed, ordered,
displayed
City of St. Joseph 1 EDA Annual Report - 2011 18
ST. JOSEPH EDA: ANNUAL REPORT 2011
2011 MEETING DATES:
The St. Joseph Economic Development Authority met 14 times during the year 2010; 12 regular meetings
and two special meetings. The meeting dates were as follows:
FIGURE 1.7
EDA MEETING DATES: 2011
January 26, 2011 June 22, 2011
February 9, 2011 (special) August 3, 2011
February 23, 2011 August 24, 2011
March 30, 2011 September 28, 2011
April 21, 2011 (special) October 26, 2011
April 27, 2011 November 30, 2011
May 25, 2011 December 28, 2011
City of St. Joseph 1 EDA Annual Report - 2011 19
ST. JOSEPH EDA: ANNUAL REPORT 2011
COMMERCIAL /INDUSTRIAL CONSTRUCTION & TAX BASE DATA:
The following table reflects historic building permit values for commercial and industrial (re)construction:
TABLE 1 -1
CITY OF ST. JOSEPH
HISTORICAL COMMERCIAL & INDUSTRIAL CONSTRUCTION
Year Value
2011 $5,392,599
2010 $370,378
2009 $7,216,910
2008 $3,690,877
2007 $3,376,221
2006 $1,259,957
2005 $2,790,117
2004 $2,708,838
2003 $3,461,695
2002 $4,687,430
2001 $593,000
2000 $361,500
TOTAL $5,392,599
The following summary and chart illustrate the progress toward the EDA's goal of enhancing the commercial
industrial portion of the City's total value, thereby diversifying the tax base. When examining progress toward
this fundamental EDA goal, it's important to understand how Minnesota's property tax system is arranged.
It's also important to view the data in historical context.
First, a quick review of the property tax system which is a continuous cycle consisting of many parts.
Fundamental to understanding the Mn. property tax system is that all property taxes are not levied equally
due to several factors, including the way K -12 public schools are funded, differences in tax classification
rates, and certain special discounts (i.e. green acres, homestead market value exclusion).
At its most basic and for our analysis purposes the following equations are central:
Commercial & Rental Property Tax =
[parcel tax capacity'] * [total combined levy of state, county, school, city, other taxing jurisdictions
Homestead Residential Property Tax =
[parcel tax capacity'] * [total combined levy of county, school, city, other taxing jurisdictions
Levy rates vary by taxing authority annually, market values have depreciated, and economic incentives such
as tax abatement and tax increment financing are in effect; therefore, a simple property tax increase is not a
true picture of progress toward the EDA's fundamental goal of diversifying the tax base. Instead, the
following analysis compares the percentage of commercial /industrial property as part of total market value
and total tax capacity value, thereby resulting in a more precise evaluation.
Parcel Tax Capacity = [parcel market value] * [property class rate]
2 A Taxing Entity's Levy= [taxing entity's budget] — [all non - property tax revenues]
City of St. Joseph 1 EDA Annual Report - 2011 20
ST. JOSEPH EDA: ANNUAL REPORT 2011
Table 1 -2 and Figures 1.8a and 1.8b show that over the previous five years the percentage of both the
market value and tax capacity value occupied by commercial /industrial property is increasing. The full value
for Millstream Shops /Lofts is reflected in the 2010 values; the full value for Coborns is reflected in 2011. The
data is encouraging especially in the wake of the Great Recession and property deflation, an occurrence
many thought not possible.
TABLE 1 -2
HISTORICAL VALUE COMPOSITION
PAYABLE YEARS 2007 - 2011''"
YEAR
COMPOSITION CATEGORY
2011 2010 2009 2008 2007
Total Market Value $ 319,772,893 $ 329,203,827 $ 330,154,087 $ 327,386,247 $ 273,234,279
Homestead Residential 62.56% 63.61% 63.47% 63.77% 65.25%
Market Value Non Homestead Residential 14.62% 14.75% 16.80% 16.91% 16.47%
Composition Farm 3.19% 3.44% 3.02% 2.78% 1.72%
Commercial/industrial 18.58% 17.1494 " 15.65% ' ` 15.51% 31%
Other 1.05% 1.06% 1.05% 1.04% 1.25%
Total Tax Capacity Value $ 3,771,137 $ 3,837,441 $ 3,799,530 $ 3,762,117 $ 3,121,158
Homestead Residential 52.96% 54.48% 55.07% 55.44% 57.07%
Tax Capacity Non Homestead Residential 13.67% 13.90% 15.80% 15.93% 15.66%
Composition Farm 2.71% 2.95% 2.63% 2.42% 1.43%
Commercial /industrial 29.12% 27.09% 24.92% 24.71% 24.02%
Other 1.55% 1.57% 1.5896 1.49% 1.82%
Source: League of Minnesota Cities Property Tax Calculation Reports
NOTE: Market valuation two years post project complettion
FIGURE 1.8A
COMMERCIAL/INDUSTRIAL CLASSIFICATION
MARKET VALUE TAXES PAYABLE 2007 - 2011*
$65,000,000 -Pry y T-1' " °
$50,000,000
$55,000,000
Market Value
$50,000,000
$45,000,000 rill/0/4/11P
$40,000,000 r 1 r 1 "
2007 2008 2009 2010 2011
' Source: League of Minnesota Cities Property Tax Calculation Reports
" NOTE: Market valuation two years post project complettion
City of St. Joseph 1 EDA Annual Report - 2011 21
ST. JOSEPH EDA: ANNUAL REPORT 2011
FIGURE 1.8B
COMMERCIAL /INDUSTRIAL CLASSIFICATION
TAX CAPACITY VALUE TAXES PAYABLE 2007 - 2011*
$1,150,000
$1,100,000
$1,050,000
$1,000,000
$950,000
$900,000 Tax Capacity Value
$850,000
$800,000
$750,000
$700,000
2007 2008 2009 2010 2011
• Source: League of Minnesota Cities Property Tax Calculation Reports
" NOTE: Market valuation two years post project complettion
City of St. Joseph I EDA Annual Report - 2011 22
ST. JOSEPH EDA: ANNUAL REPORT 2011
LOCAL ECONOMIC INDICATORS:
An 'economic indicator' is a statistic which shows how the well the economy is doing and how it's expected to
do in the future. This section will examine local economic indicators; but should be viewed in Tight of the
following:
• The 'economy' doesn't begin or cease with a political or geographic border but is ubiquitous and
interdependent.
• Important economic indicators in the United States are updated on a monthly basis continue to show
a slow rebound from the Great Recession of 2007 -2009; the slow recovery is forecast to continue.
• At its most basic, economic development is an effort to increase wealth in a given population.
• While there are several broad categories of economic indicators local data is not available for most
of the categories.
• In an effort to gain perspective on what's happening in St. Joseph we will be examining two of the
broad categories of economic indicators wherein local data is available: (a) employment,
unemployment, and wage trends and (b) production and business activity in terms of new
construction, housing vacancies, and business sales /use data.
UNEMPLOYMENT, EMPLOYMENT & WAGES
Data relating to unemployment, employment, and wage trends follows. Table 1-4 is a comparison of
historical unemployment in metropolitan areas in Minnesota (excluding Duluth). Table 1 -4 and Figure 1.9
show similar regional historic trends across metropolitan areas with the St. Cloud Area being slightly higher
than Rochester, Minneapolis /St. Paul, and Mankato. The difference is likely due to the pre- recession volume
of construction workers in the St. Cloud Area. Unemployment rates are as delayed economic indicator
(confirm what has happened) and countercyclical meaning that the lower the rate the better the economy
and vice versa. The rates in Table 1 -4 follow similar trends in relation to the Great Recession and slow
rebound; however, the rates have been decreasing during the recent months indicated local economies are
improving.
TABLE 1-4
MINNESOTA METROPOLITAN AREAS
HISTORICAL UNEMPLOYMENT DATA
MOST RECENT FIVE YEARS AVAILABLE & 2011 YTD
Year /Month St. Cloud Rochester MSP Mankato
MSA MSA MSA MSA
2006 Annual Avg. 4.2 3.6 3.8 3.3
2007 Annual Avg. 4.7 4.0 4.3 3.8
2008 Annual Avg. 5.6 4.5 5.1 4.3
2009 Annual Avg. 8.2 6.7 7.9 6.6
2010 Annual Avg. 7.4 6.1 7.2 6.1
2011 YTD Avg. 6.7 5.6 6.6 5.5
* Source: Mn. Department of Employment & Economic Development (LAUS); Not seasonally adjusted
3 Economic indicators include: output, income, spending; employment, unemployment, wages; production; prices;
money, credit markets; federal finance; international statistics.
City of St. Joseph 1 EDA Annual Report - 2011 23
ST. JOSEPH EDA: ANNUAL REPORT 2011
FIGURE 1.9
HISTORICAL UNEMPLOYMENT — MN MSA
MOST RECENT FIVE YEARS AVAILABLE & 2011 YTD
9.0
8.0
7.0
d■St. Cloud MSA
6.0
■Rochester MSA
5.0 SP MSA
4.0
Mankato MSA
3.0
2006 2007 2008 2009 2010 2011
Annual Annual Annual Annual Annual YTD Avg.
Avg. Avg. Avg. Avg. Avg.
Source: Mn. Department of Employment & Economic Development (LAUS); Not seasonally adjusted
Employment and wage data is available for the City of St. Joseph. The data in Table 1 -5 reveals that despite
the Great Recession, a net total of 293 jobs have been added in St. Joseph over the past five years. Job
gains included both business expansion (655 positions) and new job openings (427 positions); whereas job
losses included both those attributed to business contraction (561 positions) and businesses closing (315).
It's noted more jobs added from business expansion than businesses starting up and more jobs were lost
from decreases in business volume than the closing of businesses. Most recent data available for first and
second quarter 2011 is favorable. Employment data as an economic statistic is moves in the same direction
as the economy (hiring = growing economy); employment data also moves at the same time as the economy
(versus lagging or leading).
Further analysis of employment losses in St. Joseph reveals those losses mirror those throughout the U.S.
during the Great Recession. Losses include decreases in the construction and the professional /business
services sectors due in large part to the bursting of the housing construction bubble and professional
services related thereto. Employment in the St. Joseph construction sector peaked in 2007 at 386, fell
dramatically to 124 in 2008 and rebounded slightly to 143 in 2010. Employment in the St. Joseph
professional /business service sectors peaked in 2006 at 201 and fell to 66 in 2010. Analysis also reveals an
nice increase in the trade, transportation and utilities sector (includes retail /wholesale trade) in 2010 due to
the opening of Coborns.
Wage data reflected in Figure 1.10 illustrates total weekly wages have remained relatively steady over the
previous five years (i.e. high $654 in 2007; low $631 in 2008). The data correlates with the depth of the Great
Recession in 2008 and the slow recovery thereafter. The 2010 average weekly wage equates to an average
annual income per employee of $33,592. The average annual income based on average weekly wage is
lower in St. Joseph than in the St. Cloud MSA ($35,776), Stearns County ($37,024), and Minnesota
($46,748). Wages are leading economic indicators meaning they anticipate a business cycle by tending to
turn down before the down cycle begins and to turn up before the economy grows. Figure 1.10 illustrates the
City of St. Joseph 1 EDA Annual Report - 2011 24
ST. JOSEPH EDA: ANNUAL REPORT 2011
average weekly wages in St. Joseph over the past five years have followed national trends, showing the
depth of the Great Recession in 2008 followed by a slow rebound thereafter.
TABLE 1 -5
CITY OF ST. JOSEPH
HISTORICAL EMPLOYMENT & WAGE DATA
MOST RECENT FIVE YEARS AVAILABLE
!Year 2006 2007 2008 2009 2010
Employment 1,831 1,924 1,578 1,577 1,703
No. of Establishments 133 133 130 127 127
lAverage Wkly Wage
$ 631 $ 654 $ 631 $ 644 $ 646
Gross Job Gains 306 230 130 296 120
Job Gains Expansion 189 175 96 104 91
Job Gains Opening 117 55 34 192 29
Gross Job Losses 246 158 138 124 123
(Job Loss Contraction 170 108 105 97 81
Job Loss Closing 163 50 33 27 42
ITotal Annual Job Gain(Loss) 60 72 (8) 172 (3)
* Source: Minnesota Department of Employment & Economic Development, Quarterly Census of Employment & Wages
FIGURE 1.10
HISTORICAL WAGES IN ST. JOSEPH
MOST RECENT FIVE YEARS AVAILABLE & 2011 YTD
$660
$655
$650
$645
$640
Average Wkly Wage
$635 Ar.....
$630
$625 , i
2006 2007 2008 2009 2010
City of St. Joseph 1 EDA Annual Report - 2011 25
ST. JOSEPH EDA: ANNUAL REPORT 2011
NEW CONSTRUCTION, HOUSING VACANCIES, AND BUSINESS SALES
The following section relates to construction of new homes, housing vacancies, and business sales /use data.
Housing vacancy data is only available on an annual basis at a state level. The remaining data is specific to
the City of St. Joseph. These statistics cover how much businesses are producing and the level of new
construction in the economy. Again, it's important to recall a specific geographic boundary doesn't have its
own economy; rather, an economy is ubiquitous and interrelated.
New home construction in St. Joseph peaked in 2005 and has decreased significantly thereafter. The rapid
decrease is of course indicative of the Great Recession and housing decline. As illustrated in Table 1 -6, the
average value of each new home construction per year varies from a high of $187,070 in 2008 to a low of
$147,162 in 2009. The data shows the housing market continues to struggle locally. Foreclosures are less of
an issue in St. Joseph than other areas in Stearns County according to County Officials.
TABLE 1 -6
CITY OF ST. JOSEPH
HISTORICAL NEW HOME STARTS: 2006 — NOVEMBER 2011
Year No. Home Starts Total Value Avg $/Home
2006 77 $ 11,424,967 $ 148,376
2007 24 $ 4,101,141 $ 170,881
2008 7 $ 1,309,487 $ 187,070
2009 12 $ 1,765,939 $ 147,162
2010 5 $ 810,993 $ 162,199
2011 13 $ 2,000,411 $ 153,878
*Source: City of St. Joseph
Housing vacancy rates are not officially calculated on a local basis, except in conjunction with decennial
Census. 2010 Census data is not yet available for small geographical units. Because housing vacancies
correlate with how much businesses are producing and the level of new construction in the economy, they
are noteworthy for trend analysis. Figure 1.11 compares vacancy rates in Minnesota to the national trend.
Higher vacancy rates typically correspond to a decrease in economic activity.
FIGURE 1.11
HOUSING VACANCY RATES (PERCENTAGE)
Source: U.S. Census — American Community Survey Data
15.0
14.5
14.0
13.5
United States
13.0 —Minnesota
123
12.0
11.5 1
2005 2006 2007 2008 2009 2010
City of St. Joseph 1 EDA Annual Report - 2011 26
ST. JOSEPH EDA: ANNUAL REPORT 2011
Table 1.7 and Figure 1.12 below represent sales and use data for the City of St. Joseph over the previous
five years for which data is available. The sales data illustrates the opening of Coborns grocery store (fully
opened in 2009). The data table also illustrates the decrease in consumer spending, lead by the construction
sector in 2007.
TABLE 1 -7
CITY OF ST. JOSEPH
HISTORICAL SALES /USE DATA
MOST RECENT FIVE YEARS AVAILABLE
1Year Gross Sales Taxable Sales
; 2005 $ 72,313,132 $ 15,923,350
i►
2006 $ 82,422,411 $ 22,857,719
!2007 $ 76,417,314 $ 24,337,508
2008 $ 92,253,956 $ 23,092,462
r2009 $ 99,294,079 $ 19,335,904
* Source: Minnesota Department of Revenue, Tax Research Division
FIGURE 1.12
HISTORICAL GROSS SALES VOLUME
MOST RECENT FIVE YEARS AVAILABLE
100,000,000
95,000,000
90,000,000
85,000,000 •■•••GROSS SALES
80,000,000
75,000,000
70,000,000 ■
2005 2006 2007 2008 2009
* Source: Minnesota Department of Revenue, Tax Research Division
City of St. Joseph 1 EDA Annual Report - 2011 27
ST. JOSEPH EDA: ANNUAL REPORT 2011
POPULATION AND HOUSEHOLD ESTIMATES
Table 1 -8 illustrates population and household growth within the City of St. Joseph over the previous five
years. The data from 2006 -2009 is based on the American Community Survey whereas data for 2010 is
indicative of the decennial Census. The community continues to grow in terms of population and households
despite the slowdown in the housing sector. The 2010 statistical data is an actual enumeration from Census
forms versus a survey overview. As a result the 2010 data is a better reflection of actual population and
households.
Attracting residents and businesses is one means of increasing a community's wealth and, thereby,
enhancing the local economy. Under this definition of enhancing wealth, the City of St. Joseph continues to
be a growing economy.
TABLE 1 -8
CITY OF ST. JOSEPH
HISTORICAL POPULATION & HOUSEHOLD ESTIMATES*
Year 2006 2007 2008 2009 2010
Population 5,873 6,066 6,156 6,174 6,534
Housing 1,661 1,743 1,768 1,794 1,912
`Source: US Census Bureau American Community Survey (2006- 2009); Census, 2010
City of St. Joseph I EDA Annual Report - 2011 28
ST. JOSEPH EDA: ANNUAL REPORT 2011
2011 PROSPECTS /TECHNICAL ASSISTANCE /COORDINATION
This section of the EDA Annual Report represents qualified business prospects assisted over the previous
year. The EDA members and their staff /consultants continued to work with a number of commercial and
industrial businesses during 2011. A total of 13 new substantial business contacts were made during 2011
and follow -up occurred with 27 contacts from previous years. A total of 54 percent of new contacts in 2011
were commercial /service businesses with the remaining being industrial (31%) and /or institutional (15 %) in
nature. A total of 91 percent of new 2010 prospects were commercial /service businesses, the same as new
leads in 2009. In 2008 75% of new leads were commercial with the remaining 25% industrial. In 2007 60% of
new leads were commercial while 40% were industrial. In 2006 44% of new leads were commercial and 56%
industrial, the percentage distribution was the same for 2005 leads (44% commercial and 56% industrial). In
2004, 60% of new contacts were commercial /service establishments and 40% industrial; during 2003 43% of
the new contacts were commercial /service businesses while 57% were industrial or manufacturing
businesses. The change in business prospect categories likely reflects the limited availability of industrial lots
and the struggling economy.
Following is a summary of the various contact activities within 2011. Businesses have been identified with a
project number to protect the confidentiality of the company, which is sometimes a concern while they
explore construction /expansion opportunities.
Project 01 -F:
This lead involves the development of a fast food restaurant (free- standing) in the City. The project is the
subject of a site plan development and is expected to be constructed in 2012.
Project 02 -L:
This project resulted in the construction of a new business facility in 2003. The facility was oversized so as to
accommodate future expansion. In the interim the space is leased to other industrial occupants. The EDA's
MDG continues to market the industrial lease space on the City's website, the MnPRO site, the SCAEDP
site, and with Local commercial realtors.
Project 03 -A:
This group of Developers is contemplating a large highway commercial development in an area not yet
annexed into the City. MDG continues to maintain active correspondence with this prospect. These contacts
worked with Project 07 -J to develop a joint concept plan. The EDA participated modestly in the development
of the concept plan which is featured on the City website. The EDA will contribute more to the project in the
event the concept plan is presented to the City Council and if /when a preliminary plat is filed.
Project 04 -H:
See Project 10 -A update.
Project 04 -N:
This business is currently a home occupation in an adjacent area. The business has purchased a lot within
Buettner Business Park. The construction timeline is fluid at this time, although the contact remains open to a
land for building swap. MDG remains in touch with the property owner.
Project 04 -S:
This project involves a large phased development the majority of which reverted to bank ownership and back
to the original land owners. A preliminary plat was approved in 2008 for a portion of the property, the final
plat was approved but not recorded as a development agreement was not finalized. The property is now
banked owned. In 2011 EDA staff met on occasion with the bank's representative and the banks broker. In
addition, talks regarding finalizing plat and follow -up meetings with two potentially interested parties were the
subject meetings in the beginning of 2011.
Project 05 -A:
This project involves a former feed mill. The EDA's MDG continues to market the site on the City's website,
the MnPRO site, the SCAEDP site, and with local commercial realtors.
City of St. Joseph 1 EDA Annual Report - 2011 29
ST. JOSEPH EDA: ANNUAL REPORT 2011
Project 05 -1:
This project resulted in the largest private development investment in the Downtown in history of the City. In
2011 one new storefront was added to the commercial portion of the facility. The EDA also worked with the
building owner so as to entice a restaurant to the end -cap (see Project 11 -F).
Project 06 -H:
This project involves the development of commercial /residential property adjacent to CSAH 75 and
Millstream Park. Strack remains in active contact with this representative, especially as it relates to CSAH 2
construction and Appraisers working for Stearns County on right of way acquisition for new CSAH 2.
Project 06 -1:
This project involves the marketing of a 30 -acre parcel adjacent to 20 Avenue. A portion of the property was
sold to the federal government for a military reserve base, site plans are pending.
Project 07 -G:
This project involves the expansion of an industrial facility to the City of St. Joseph. The project
representatives met several times with MDG in 2002 and in 2008 regarding extension of services to a
currently un- serviced area within the corporate limits. MDG maintains occasional contact with project
representatives.
Project 07 -J:
This project has resulted from active outreach to owners of potential commercial /industrial property adjacent
to 1 -94. MDG continues to maintain active correspondence with this prospect. These contacts worked with
Project 03 -A representatives to develop a concept plan for a portion of this property. The EDA provided a
very modest financial incentive to the group for the development of the concept plan.
Project 08 -A:
This project involves a development in close proximity to the downtown. The Developer continues to refine
development plans. Discussion remains on- going, on an occasional basis. The Developer's website
continues to promote the project.
Project 08 -B:
After several years of working with the project contact (and project contacts for Project 03 -A, 06 -H, and 07 -J)
this business purchased land in St. Joseph Township adjacent to the St. Joseph Water Treatment Plant. The
business located in the township due to favorable land prices and lack of adequately sized, improved
acreage within the City. The facility was completed in 2011 and opened for service late in the year.
Proiect 08 -C:
This local business owner contacted the City after learning of the BFA grant opportunity. Strack continues to
discuss a potential downtown project with the business owner. The Project Contact is very interested in the
potential demolition grant program and has met with Strack on several occasions. The contact is currently
getting bids for the demolition of a structure and seeking advice on asbestos abatement.
Proiect 08 -F:
This project involves the expansion of a successful business located in the industrial park which started out
as a home occupation. Strack remains in occasional contact with this project contact, including delivery of
technical information on a couple of occasions in 2011. Expansion is reportedly pending.
Project 09 -C:
This project involved the subdivision of a four acre parcel at CSAH 75 /CR 133 and the establishment of a
professional plat in conjunction with the relocation of an existing clinic in St. Joseph. The project received
preliminary plat approval but the Developers were unable to secure project financing. The EDA and staff
have worked with the parcel owner and a development representative throughout 2011 to finalize the plat
and ready a site for a fast food restaurant.
City of St. Joseph 1 EDA Annual Report - 2011 30
ST. JOSEPH EDA: ANNUAL REPORT 2011
Proiect 09 -G:
This project involves the expansion of a local retailer in the vicinity of Downtown. The property owner
contacted Strack in summer of 2009. The property owner and Strack have met on several occasions
regarding technical and financial assistance available through the EDA. The Project moved forward in 2011
with financial and technical assistance from the EDA.
Project 09 -1:
This project relates to discussion with a bank that now owns several acres of land under Project 04 -S.
Requested information has been forwarded to the project contact. The Project Contact and Strack remain in
touch on an occasional basis.
Project 10 -A:
This project involves the purchase of a recently vacated building in the Downtown. The project contact has
successfully completed another project in Downtown with assistance from the EDA. The project moved
forward in 2011 with assistance from the EDA's Revolving Loan Fund and involvement with the EDA's
NFFTE project, an effort to bring Neighborhood Fresh Fare to Tables Everyday.
Project 10 -B:
This project involves the location of a signature, unique use within the community. Strack has met and talked
with the Project Contact occasionally in 2011. The Project Contact met with Project 05 -1 a few times in 2011.
The Project Contact is finishing schooling relating to the proposed professional use.
Project 10 -D:
The project relates to several business within the Central Business District and an associated amenity.
Several concepts were developed and meetings with individual business owners were previously
requested /facilitated. The project remains on the 'radar' for downtown but not on the 'front burner' due to lack
of response.
Project 10 -E:
This project involves expansion by an existing business that has used the EDA BFA grant for a previous
project. The business owner moved ahead with another project in 2011 assisted in part by the BFA program.
Project 10 -H:
This project involves the re- location of an existing commercial enterprise somewhere within the St. Cloud
Area. A site selection firm initially contacted Strack in the summer of 2010 regarding a seven acre site
adjacent to 1 -94. Discussions with two separate property owners and company executives ensued. In 2011
the Company purchased property in the City of St. Cloud.
Proiect 10 -1:
This project involves the marketing of property adjacent to CSAH 75 and CR 133. Strack met on two
occasions with the property owner. Local market information and research relating to comp. sales, etc. was
produced and forwarded to the contact. The property is listed on the City website and MnPRO and was listed
on the SCAEDP site.
Project 10 -J:
This project involves the potential re -use of a large gathering space within the City. Strack met with project
representatives and provided requested information on several occasions. The use of the property was most
recently envisioned as a quasi retail /production facility.
Project 10 -K:
This project involves the revitalization of a mixed use property in the downtown. Long -range plans for the
property include revitalization in a fashion similar to the Millstream Shops /Lofts building. Short term places
remain the same at this time.
City of St. Joseph 1 EDA Annual Report - 2011 31
ST. JOSEPH EDA: ANNUAL REPORT 2011
Project 11 -A:
This project involved the location of a new industry in the St. Cloud Area. The lead was forwarded by a local
realtor and correlated by a local business representative. A proposal was dispatched in early 2011 to the
realtor and the local business representative. The lead ultimately located in southern Minnesota.
Project 11 -B
This lead was forwarded from a site selection firm and resembled Project 11 -A, however, the correlation was
not confirmed. Therefore, a proposal was created and dispatched in late Winter 2011. The project did not
move forward.
Project 11 -C
This project involves the demolition of a residential dwelling and the creation of a new restaurant. The EDA
assisted the project with asbestos abatement and a BFA grant. The project moved forward in 2011 and will
be completed in 2012.
Project 11 -D
This project involved the occupation of an existing facility within the City by a new business. The project has
since combined with Project 10 -J and remains active. Technical and financial incentive information was
presented to the project representatives on several occasions.
Proiect 11 -E
This project involves the expansion of a local eatery. The owners and Strack met on several occasions to
discuss potential layouts. The property owners are studying the project and considering options at this time.
Project 11 -F
This project involves readying a space for a restaurant occupant. The EDA reached out to the property
owners regarding special TIF authority. The project moved forward in 2011 with occupancy expected in
2012.
Proiect 11 -H
This project involves the construction of a federal facility on property formerly owned by the Riverbat's team
owner. Technical information was forwarded to the project contact. Site plan submittal is expected in 2012.
Project 11 -1
This project involves the expansion of an existing manufacturing facility in St. Joseph. Staff met on three
occasions with representatives from the project providing technical information and information regarding
financial incentives as requested. Site plans are nearing finalization. The project is valued at $800,000 and
would add approximately 10 new jobs in 2012.
Project 11 -J
This project involves the construction of new student residential units, a welcome center, and athletic
facilities by the College of St. Benedict. The multi - million dollar project will bring numerous construction jobs
to the City and will be an anchor for the Downtown. The project representatives met with staff (including
Strack) on several occasions to discuss plans. Strack reviewed plans from a community development
perspective and provided direction to the Planning Commission /City Council. Strack also participated in the
review of a development agreement for the project. Construction is pending.
Project 11 -K
This is a confidential project by request of the project representative. No information is on file regarding.
Project 11 -L
This project involves the sale of two industrial buildings in St. Joseph. The EDA Director has toured both
facilities and met on several occasions with property owners. The properties are listed on the City's website
and the MnPro site. The properties were suggested for occupancy by a non - profit but ultimately failed to
meet the specifications of the requesting agency.
City of St. Joseph j EDA Annual Report - 2011 32
ST. JOSEPH EDA: ANNUAL REPORT 2011
Project 11 -M
This project involves the presence of a financial entity within the City of St. Joseph. The project is tentatively
forecast for 2013.
Project 11 -N
This project involves the lease of commercial space within the City for personal services. Strack has met on
several occasions with the project representative, primarily to provide information on business start up
including business planning and business financing. This project representative was teamed with a mentor in
2011.
City of St. Joseph I EDA Annual Report - 2011 33
ST. JOSEPH EDA: ANNUAL REPORT 2011
PROGRESS REPORT - GOALS FOR 2011:
Following were EDA goals for 2011 with updates on progress toward goals and plans for 2012.
1. EXTENSION OF SANITARY SEWER AND DRINKING WATER TO NEW CSAH 2
(INFRASTRUCTURE DEVELOPMENT FUNCTION).
„: PROJECT HISTORY: This item was discussed at a City Council
retreat in February 2009. The City Council initially decided
x streetscaping and trail installation adjacent to new CSAH 2 was not
4 /64 0
' +` feasible; however, in 2011 the City Council agreed to pursue trail
( ,'rt installation in conjunction with road construction.
' ` ," The concept of proactive utility extension in conjunction with the
, ` F.
u�■ .1 installation of new CSAH 2 was considered and included in land use
'. , . e and financial planning documents. However, it is strongly
1 . recommended that improvements are timed to coincide with
y property development.
�� „� 4 y PROGRESS REPORT: Utility extension in conjunction with the
,,,:'',$'- '''
h , installation of new CSAH 2 was included in a grant request submitted
$ 5 ” ^ to the East Central Development Commission, the entity contracted
'41 ~ to pursue the establishment of a Comprehensive Economic
' M ; Development Strategy (CEDS) and the establishment of a federal
, i EDA district in the quad- county area.
, , - Stearns County has proceeded with acquiring right of way for CSAH
f , 2 through the eminent domain process. Property acquisition is
. n .fi � underway and the project construction has also been funded.
POTENTIAL WORK ITEMS 2012:
Construction of new CSAH 2 is finally set to begin in 2012 after
'- - , years of delay.
11_
Pursue infrastructure grant through Mn. DEED'S Business
, Development Public Infrastructure Program (maximum
1
$500,000; requires business construction).
; 1 Work with EC Development Commission to finalize CEDS and
ii establish Federal Economic Development Administration
,. - *., ~ District.
City of St. Joseph( EDA Annual Report - 2011 34
ST. JOSEPH EDA: ANNUAL REPORT 2011
2. MANAGE RESPONSE TO ECONOMIC IMPACT OF THE IMPLEMENTATION OF
FOUR -YEAR RESIDENCY REQUIREMENT AT CSB /SJU (BUSINESS
DEVELOPMENT AND MARKET DEVELOPMENT FUNCTION).
PROJECT HISTORY: The City Council directed the EDA to examine
the potential economic impacts of a four -year residency requirement
at CSB /SJU and function as information resource regarding economic
Q
impact of four -year residency. The task of the WG is to advise the City
Council whether or not the public sector should get involved in
transitioning of rental uses, and, if so, to what extent. The WG
recommend the public sector be involved in the transitioning of
student rental units because: the capitalized loss of rental income will
far exceed rent collected and will directly impact (reduce) the value of
rental property; property and taxable market value will be impacted by
reduction of rental demand; large facilities designed for student rental
(e.g. St. Joseph Student Housing) are experiencing a reduction in unit
rental; reduced rental demand has resulted in difficulty obtaining
financing and /or refinancing of rental property; and, there is a potential
for rental property that is not cash flowing to enter foreclosure, cease
property tax payment, and /or fall into disrepair.
PROGRESS REPORT: A Rental Housing Transition Work Group
(WG) was formed in 2010 and met throughout 2011. In 2011 the WG
finalized prioritization of public sector strategies to respond to the
decrease in demand for student rental units and developed study
A
areas for the project. The WG assigned potential strategies to each
. f, i study area. The WG reported findings to the EDA and the City Council
in 2011.
. ' The work group met with rental property owners in the Spring and
": worked with the EDA, City Council, and the Stearns HRA to organize
" ,,. th e submittal of a pre - application to the Small Cities Development
';. r,• Program.
,
POTENTIAL WORK ITEMS 2012:
I Work with Stearns County HRA on the final application to the
tt
1 SCDP grant. Assist as needed in program development and
- \ / — : 1 administration.
` { 1 Create architectural illustrations /renderings of infill potential
i P r `.- adjacent to Minnesota Street and College Avenue for parcels
" ,? t currently used for student rental purposes (to complement
,' . .t - downtown revitalization efforts).
City of St. Joseph 1 EDA Annual Report - 2011 35
ST. JOSEPH EDA: ANNUAL REPORT 2011
3. MARKET ST. JOSEPH OPPORTUNITIES WITHIN GREATER MINNESOTA AND
MARKET AVAILABLE COMMERCIAL AND INDUSTRIAL LOTS, LAND, LEASE
SPACE, BUILDINGS, ETC. (MARKET DEVELOPMENT FUNCTION).
�. PROJECT HISTORY: The EDA has a core interest in marketing
business opportunities and available business property within the
A: City of St. Joseph to areas external to the City.
rr
P yre
'''''' ' ))" ':' M
�" � ` � v PROGRESS REPORT: A 'idea incubator' was added to the City's
, ' v - website in 2011. The incubator explains economic development and
f'..,' : " �,u M� r, 1,, provides an opportunity for the public to have direct input into the
economic development process. The concept plan and animation for
i ! = ' the Gateway Commons project was also placed online in 2011.
w ..: 1 , _= f' / Listings of properties for sale or lease were continuously updated and
A. , added to the City and the MnPro websites on an as- needed basis.
4' .. The EDA produced window clings and a 4 X 4' sign for display at
businesses assisted by the EDA.
� , - L ,f I was presented to the St. Joseph Chamber at two
a , <- mee
;t. .t
`-' ' "'"--' - • a POTENTIAL WORK ITEMS 2012:
<
} • j , Continue updating property listings at the City and MnPro
1 websites.
t,
Host at least one listening /working session with St. Joseph
' � i ‘! 1 a Business Owners.
A Present information to the Chamber and other groups as
requested.
City of St. Joseph! EDA Annual Report - 2011 36
ST. JOSEPH EDA: ANNUAL REPORT 2011
4. INVESTIGATE AND PURSUE PROACTIVE MEASURES TO SECURE AND
PROVIDE FOR SHOVEL READY INDUSTRIAL SITES AND ENCOURAGE
BUILD -OUT OF PARKWAY BUSINESS CENTER (INFRASTRUCTURE
DEVELOPMENT FUNCTION).
PROJECT HISTORY: Creating shovel ready industrial lots has long
been a priority for the EDA. The creation of such lots is dependent on
planning. wy u d are
impacted public policy by cuts and to LGA capital and a market At a value time program hen Cit shiftb, d extensio ts n
of utilities for economic development purposes is a lower priority than
items mandated by regulation or needed to accomplish local
- 0 government tasks.
A 2010 work item for the EDA included examination of the potential to
provide for the development and improvement of a fraction of the
M■rY .. Parkway Business Center as a means of inducing development on the
remainder of the property and provide shovel ready industrial sites at
competitive market rate prices. The EDA ultimately concluded that the
w.
purchase and improvement of a portion of Parkway Business Center
was not feasible.
PROGRESS REPORT: The EDA in 2011 authorized participation in
the readying of the final plat for the Parkway Business Center. The
EDA/staff met with bank executives, real estate brokers, and potential
purchasers of property within the Parkway Business Center but the
s ;' << bank was not prepared to file a final plat.
"., The EDA did submit grant requests to the East Central Regional
,
cdt f f Development Commission for installation of improvements at the
, Business Center. The grant requests are to be included in a CEDS
.- ._ being developed by the ECRDC on behalf of the quad counties..
POTENTIAL WORK ITEMS 2012:
: ` _ . - i Continue to work with bank and real estate professionals to sell
\ ' _ F at least a portion of the 52- acres; apply for Mn. DEED Business
,- j Development Public Infrastructure grant (maximum $500,000) to
( i assist with installation of improvements.
' � _ - . : . _ . J ;
Continue to seek filing of final plat for the development so as to
remove one step in the process of readying the property for sale.
City of St. Joseph 1 EDA Annual Report - 2011 37
ST. JOSEPH EDA: ANNUAL REPORT 2011
5. WORK WITH PROPERTY OWNER TO PROCEED WITH "ST. JOSEPH
PROFESSIONAL PLAT" (INFRASTRUCTURE DEVELOPMENT FUNCTION).
PROJECT HISTORY: This property is owned by a single entity and
located in the northwest quadrant of the intersection of CSAH 75 and
0 CR 133 (west of Coborns PUD). Preliminary/final plat documents and
improvement plans were developed for this four acre parcel in 2008 -09
in conjunction with potential sale of property. The sale dissolved just
prior to the public hearing for the plat. The preliminary /final plat
application has been pending since that time. As a goal for 2010 the
EDA sought plat finalization and a marketing partnership with the
EDA/Property Owner.
x PROGRESS REPORT: The subject area has recently been platted and is ,- the subject of plans for incremental installation of improvements.
M ,ii
"� r, A site plan for a portion of the plat is being created and will be reviewed by , ,_
4
staff in late December 2011. . 0.. ,....
k " "tea. ,, a# ' ;, _
POTENTIAL WORK ITEMS 2011:
Assist in processing /reviewing /advising applicant on submission
of site plan documents.
r i is-- Assist in marketing the remaining sites within the subdivision to
7 l other prospects complimentary in use to that being established in
2012.
City of St. Joseph 1 EDA Annual Report - 2011 38
ST. JOSEPH EDA: ANNUAL REPORT 2011
6. CONTINUE TO WORK WITH PROPERTY OWNERS SEEKING DEVELOPMENT OF
LAND ADJACENT TO PROPOSED CSAH 2 (INFRASTRUCTURE AND BUSINESS
DEVELOPMENT FUNCTION).
PROJECT HISTORY: Two property ownership entities are
contemplating development/sale of property adjacent to CSAH 2 /new
CSAH 2. One group is GTI Properties, the other entity is Walz
Properties, LLC. The EDA and both property ownership groups have
t, met on several occasions throughout the past several years.
In 2010 the ownership groups requested the EDA participate in the
development of concept plans for the acreage south of current CSAH 2.
The EDA agreed to limited participation tied to benchmarks.
1?: ``4' - PROGRESS REPORT:
A concept plan for "Gateway Commons" was developed in 2011 along
`} with an animated design. The EDA participated modestly in the
,/ development of the plan. The concept and animation are on the City's
website.
POTENTIAL WORK ITEMS 2011:
Continue efforts to market a portion of the site as a signature site
t adjacent to 1 -94. If successful, pursue infrastructure grant through
Mn. DEED's Business Development Public Infrastructure Program
C (maximum $500,000; requires business construction).
ti f _m
Work with property ownership entities to seek approval of
concepts by the Planning Commission and City Council.
r 1
:E t Work with the ECRDC to submit grant application for
infrastructure extension through Federal Economic Development
Administration.
City of St. Joseph 1 EDA Annual Report - 2011 39
ST. JOSEPH EDA: ANNUAL REPORT 2011
7. HOST AT LEAST TWO EVENTS FOR BUSINESS OWNERS (BUSINESS
DEVELOPMENT FUNCTION).
PROJECT HISTORY: Building on the perceived success of previous
meetings with business owners, the EDA established a goal of presenting
information to business owners.
t. i ',0 . -x
w
i , t PROGRESS REPORT: In 2011 the EDA Director presented information to
f the St. Joseph Chamber of Commerce on two separate occasions. The first
presentation involved the EDA's annual report (April 13 the second
" introduced demolition of a new
structures EDA matching past their grant useful program life. (November 9) based on the
..
,..... ` , ,,,,:„ A 4 ,
, The EDA also hosted a meeting of rental housing property owners and an
. informational meeting regarding the Small Cities Development Grant
u ! , Program.
POTENTIAL WORK ITEMS 2012:
Host a second informational meeting with home owners and rental
property owners following the issuance of a $600,000 SCDP Grant to
the City.
( Present quarterly reports to the City Council.
r Present information /be featured speaker at a minimum of one
/� 'J� \ ...3 Chamber of Commerce meeting. If
City of St. Joseph 1 EDA Annual Report - 2011 40
ST. JOSEPH EDA: ANNUAL REPORT 2011
8. IMPLEMENT CAPITAL IMPROVEMENT PROJECTS (ORGANIZATIONAL
DEVELOPOMENT, INFRASTRUCTURE DEVELOPMENT, AND BUSINESS
DEVELOPMENT FUNCTION).
PROJECT HISTORY: The EDA is required to follow the City's established
process for budgeting and auditing. When preparing /recommending an
0 annual budget, the EDA also recommends adjustments to the Capital
, ' t
Improvement Plan.
In 2010 capital projects included the Business Facade Architectural Grant
Program (six projects funded), the completion of the downtown
street/landscaping plan (revitalization), participation in rental unit
'''''''''' IC: transition activities (revitalization), and participation in creating shovel
ready sites (development).
�
� f
PROGRESS REPORT: In 2011 capital projects included the Business
Facade Architectural Grant Program (four projects funded), the use of
,. , , special TIF authority to promote expansion within the downtown and used
' CIP proceeds to assist with asbestos abatement (revitalization),
l if 1 participation in rental unit transition activities (revitalization), and
+s f f participation in creating shovel ready sites (development).
In 2012, has been allocated $28,100 for similar capital projects. The
allocated amount is subject to reduction due to further restrictions in local
t. government aid.
" ..,. "- POTENTIAL WORK ITEMS 2012:
Administer BFA program.
`°' Participate in landscaping project in conjunction with the installation
of a sidewalk/trail segment on the water tower property and adjacent
\
,.,. to CSAH 2 as a means of softening the appearance of hardscapes,
" tying the Wobegon Trail to Downtown, and creating a unique and
, ) defined image of St. Joseph.
1 . Finalize demolition grant program and administer.
t Complete concept planning for areas adjacent to CSAH 2.
City of St. Joseph 1 EDA Annual Report - 2011 41
ST. JOSEPH EDA: ANNUAL REPORT 2011
9. RESPOND TO INQUIRIES AND CONTINUE PROACTIVE FOLLOW UP OF VIABLE
LEADS /PROSPECTS (BUSINESS DEVELOPMENT FUNCTION).
PROJECT HISTORY: This is a core function of the EDA and shall
continue to be in 2012.
x r
, ,c, 0 , 0 2
{ , •, PR OGRESS REPORT: In 2011 thirteen (13) new leads (vetted,
41q ., w "" o * . e substantial) were cultivated. In addition twenty -seven (27) leads from iii 7 ,Y -' previous years were cultivated, including the blossoming of a project that
' t has been cultivated since 2001.
' ' , Most of the leads cultivated in 2011 are commercial retail and /or service
in nature, however, one involves an industrial -type uses. The split is
l similar to those occurring over the previous two years since the economic
,o� -; downturn.
` POTENTIAL WORK ITEMS 2012:
P
`, Promotion of the Business Facade Architectural (BFA) Grant
\,f- ° Program, the Demolition Grant Program, and the RLF.
r '
Implementation /administration of the land /streetscape design
/ , (includes connecting Wobegon Trail Center to College /Minnesota,
l l .) west Minnesota to new CSAH 2).
J
,1 Work with one downtown property owner on asbestos abatement.
Assist with expansion of one Downtown businesses.
City of St. Joseph 1 EDA Annual Report - 2011 42
ST. JOSEPH EDA: ANNUAL REPORT 2011
1 CONTINUE TO PURSUE REVITALIZATION WITHIN THE DOWNTOWN
(INFRASTRUCTURE AND BUSINESS DEVELOPMENT FUNCTION).
PROJECT HISTORY: This is a core function of the EDA since 2003 and
shall continue to be in 2012. Revitalization activities included the creation
of downtown facade design guidelines, examination of parking capacity,
the expansion of The Local Blend, updating of former Losos store and
opening of the Minnesota Street Market, the construction of Millstream
Shops /Lofts, the issuance of several BFA grants, and the creation of
I MO illustrations of storefronts to represent desired design guidelines.
k PROGRESS REPORT: In 2011 the EDA assisted in the development of a
an expansion at 29 East Minnesota Street, the readying of an endcap at
Millstream Shops /Lofts for a restaurant occupant, and the issuance of
q ;x four BFA loans.
,: 4 The EDA also assisted a property owner in the downtown with removal of
a residential structure that had exceeded its useful life. The EDA's
participation reduced project costs due to asbestos abatement and
helped the project move forward as planned.
3
POTENTIAL WORK ITEMS 2012:
Promote and administer incentive programs.
Assist downtown property owner with demolition of portion of
site including asbestos abatement.
Assist projects with approved BFA grants in realizing projects.
; � Fill restaurant end -cap at Millstream building.
}
({
q§ Work with property owners to implement land /streetscaping
" „
k { - -: projects.
City of St. Joseph 1 EDA Annual Report - 2011 43
ST. JOSEPH EDA: ANNUAL REPORT 2011
11. IMPLEMENT /ADMINISTER TECHNICAL AND FINANCIAL INCENTIVE PROGRAMS (BUSINESS
DEVELOPMENT FUNCTION). 0 i PROJECT HISTORY: This is a core function of the EDA and shall
continue to be in 2012.
0 0, 11110
i r A , 4,. jc
4., # 1,,
,,,,......„..„,,,,,...„. ,..„,r,„,,,,,
. kt
4 r i ' PROGRESS REPORT: In 2011 the EDA/EDA Director offered and ■
a "' Y ' '` . administered the following incentives /advisory services: tax increment
financing, tax abatement, industrial revenue bonds, small business
�,,' development loan program (DEED), Minnesota Investment Fund, St.
E .R /
- i Joseph Revolving Loan Fund, St. Joseph Business Facade Architectural
Grant Program, Small Business Association Loan /Grant programs,
V �, financial /technical assistance available through the Minnesota Business
' f Finance Corporation, USDA Loan Guarantees, incentives from energy
. - providers, incentives for disadvantaged persons, technical assistance
(licensing, land use, and subdivision information), job training assistance,
" , and advisory services (SCORE, Online Women's Business Center,
_, `` '4 Minnesota Technology, SBA Online Courses, entrepreneurial resources,
. r w , '5 ,;, 7 and Mn. Small Business Development Center Business Counseling).
1
}
1
' \ , 4 POTENTIAL WORK ITEMS 2012:
ir.
I Promote and administer incentive programs.
/ ( Promote and administer technical advice services /programs.
i" ` 1 Identify additional resources /technical information sources.
t _
City of St. Joseph 1 EDA Annual Report - 2011 44
ST. JOSEPH EDA: ANNUAL REPORT 2011
12. DOES THE EDA HAVE OTHER GOALS FOR 2012 ??
PROJECT HISTORY:
*i:i ' -
","*. AfiV* " 'i ' '
,,,,,
e t ,
o g .
#.:eitt,,,.. ,,-,,,,,
t
PROGRESS REPORT:
t
POTENTIAL WORK ITEMS 2012:
x
3
City of St. Joseph 1 EDA Annual Report - 2011 45