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HomeMy WebLinkAbout2011 [08] Aug 24 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, August 24, 2011 Present: EDA Board Members Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: Chad Davey, Steve Frank. Also present: St. Joseph resident Mike McDonald, Jon Petters and Sue Ergen representing Millstream Shops and Lofts, City Administrator Judy Weyrens, Mayor Rick Schultz, and EDA Director Cynthia Smith- Strack. Call to Order. Chairperson Wick called the August 24, 2011 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda and requested the addition of agenda item 4c relating to reimbursement to Gateway Commons for development of a Master Concept Plan and the addition of 5d relating to budget changes. Also movement of agenda item 5a relating to Millstream TIF Grant Use Adjustment ahead on the agenda as the first item of business. Motion by Heinen, second by Skahen to approve the agenda with the requested changes. Motion carried 3 -0. Millstream TIF Grant Use Adjustment Chairperson Wick introduced the agenda item and Jon Petters and Sue Ergen representing Millstream Shops and Lofts. Strack noted that the EDA and City Council had approved use of excess TIF revenue to assist in the readying of end -cap space at Millstream Shops /Lofts for lease by a restaurant. The original request approved related specifically to a quote from St. Cloud Refrigeration. The Developers were now proposing to use approved reimbursement for alternate equipment purchases. The issue was complicated in terms of the need to provide receipts for TIF file and need to provide security for forgivable grant. The complexity of the discussion also included recent emails between the Developer and the Building Official regarding adequacy of certain equipment and a question of whether or not re- approval by the City Council would be required. Strack noted the TIF agreement identified the project as development readying end -cap space for occupancy by a restaurateur but that she was not comfortable with approving the alternative suggested by the Developer and was seeking EDA direction. Strack referenced the $29,740 quote from St. Cloud Refrigeration as contained in the EDA packet. Strack then distributed information submitted by the Developer post - packet completion /distribution. The information included catalog listings of a 10' stainless exhaust hood, a meat slicer, a prep table, a sandwich salad unit, and a stainless steel table. Strack noted the information did not include actual sales receipts or invoices which were required by the State Auditor for inclusion in the applicable TIF file. Ms. Ergen distributed a list of items contained in the restaurant build -out which totaled $39,483.36 and include labor and materials. Petters indicated the exhaust hood had been ordered, but the order was placed on hold pending review /comment by the Building Official. Petters and the Building Official were in disagreement over the ability of the Building Official's office to provide conceptual approval of the hood. Skahen asked Petters whether or not the Building Official had enough information to be able to comment on the purchase. Petters stated he was not asking for project approval, only whether or not the local code allowed such an item. Petters opined that enough information was present. Weyrens noted the County also had a role in approval of food handling and suggested perhaps Petters contact their office regarding the hood for advice. Strack expressed support for the Building Official's professionalism, knowledge, and dedication and also her support for the end -cap project. She then suggested this issue was external to the agenda item. Millstream representatives noted they would work through the issue with the Building Official. Heinen clarified the EDA was being asked to comment on using excess TIF revenue for other equipment and /or material and labor expenses as opposed to those submitted in the initial request. Heinen stated support for the extension of use of excess TIF revenue to items related to development of the end -cap. In addition she acknowledged security was necessary for the TIF agreement but the actual items the forgivable loan funds were used for and the security provided could differ. Skahen and Wick supported Heinen's statements. Strack inquired as to whether or not the EDA thought the item should be presented to the City Council for consideration in addition to comment received from the EDA. Weyrens noted the Council's approval in April didn't specify such consideration was necessary and, that unless the EDA had a different opinion, the issue should be as discussed by the EDA. The EDA concurred. Ergen inquired as to whom additional information should be distributed. Strack noted all information could be forwarded to her for distribution to appropriate individuals. The EDA and Millstream Representatives agreed the project should move forward and reaffirmed support for each entity. Ergen and Petters exited the meeting. Approval of Minutes. Chairperson Wick introduced the minutes of the August 3, 2011 EDA meeting. Motion Wick, Second Heinen to approve the minutes from the August 3, 2011 regular EDA meeting as presented. Motion approved 3:0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable in the amount of $2,390.74 for MDG services. Wick introduced the July financial report noting the 2010 Audit had been completed and the financial reports illustrated the audited figures. Strack noted the payment to Cone Castle for Asbestos Abatement included in the capital expenditure calculations. Motion Skahen, Second Heinen to approve August accounts payable and the July financial report. Motion carried 3:0. Approval of Disbursement for Gateway Concept Plan Development. Wick introduced the agenda item. Strack noted at a regular meeting on March 24, 2010 the EDA approved participation in the amount of $1,000 in the development of a concept plan for "Gateway Commons" which included both GTI Properties and Walz Properties, LLC. land holdings. Strack noted the concept plan had been developed and the property owners were seeking reimbursement. Total costs exceeded $4,900. The EDA conditioned initial approval on being able to use the concept plan materials for promotion of economic development. To those ends the concept plan and a video developed were posted on the internet and available for inclusion in any form of marketing materials. Motion Heinen, second Skahen to approve a disbursement in the amount $1,000 for development of the Gateway Commons Conceptual Master Plan. Motion approved 3:0. EDA Window Sticker. EDA Minutes — August 24, 2011 2 Wick introduced the topic and mentioned the image included in the EDA packet. Wick stated this was just an initial idea. The website would directly link to a page on the City website and the item could be used for window decals or larger signs. Heinen expressed support for the illustration and suggested using it on a development sign by Cone Castle. Skahen suggested spelling out "Economic Development Authority" in case individuals didn't know what the EDA acronym meant. Wick will secure domain name and rights to the image. He will also retag the image to state Economic Development Authority. Weyrens mentioned she would forward information on the vendor the City uses for the compost window stickers. Strack will investigate vendors for the production of a small 4 X 4 sign either banner or acceptable stick built sign to put up at the Cone Castle site. 2012 Budget Adjustment. Wick stated the City Council had met to discuss the preliminary budget which needs to be approved by September 15, 2011. Wick stated that staff was directed to hold the CIP requests to just items needed in 2012. Wick suggested that funding parking lot creation in the downtown over time would not be eligible for inclusion in the 2012 CIP per the Council direction. The 2012 submitted CIP for the EDA totaled $56,000. The 2011 CIP submittal approved totaled $40,000. The EDA discussed removing $5,000 allocated for a collector street connecting new CSAH 2/3 to industrial developable area. The CSAH 2/3 route was not anticipated for completion until 2013. In addition, the EDA suggested reducing the allocation for rental conversion to $1,500, reducing the Business Demolition Program to $6,000, and reducing the downtown revitalization effort to $15,000 bringing the total requested allocation to $44,000. Mayor Schultz encouraged the EDA to identify a vision /strategy for downtown and choose a project and make an effort to fund that project. As an example Schultz suggested identifying a parcel that could be converted to a use that benefits the downtown revitalization effort such as creating a vacant buildable commercial lot in the downtown or creating public parking lot. Schultz suggested developing a budget for the project and requesting funding from the Council. Motion Skahen, second by Heinen to reduce CIP request for year 2012 to $44,000. Motion approved 3:0. Board Member Announcements. Wick- noted that Region 7E was meeting on September 1 regarding the Central Minnesota CEDS update. Skahen inquired about EDA Board Member Davey's recent change in employment and how it impacted his involvement with the EDA. Heinen and Skahen will follow up with Davey. Adjournment. Meeting adjourned b onsensus at •30 PM. Cynthia Smith - Strack EDA Director EDA Minutes — August 24, 2011 3