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HomeMy WebLinkAbout2011 [09] Sept 28 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, September 28, 2011 Present: EDA Board Members Chad Davey, Steve Frank (3:10), Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: None. Also present: St. Joseph resident Mike McDonald and EDA Director Cynthia Smith - Strack. • Call to Order. Chairperson Wick called the September 28, 2011 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Skahen, second by Heinen to approve the agenda as presented. Motion carried 4 -0. Approval of Minutes. Chairperson Wick introduced the minutes of the August 24, 2011 EDA meeting. Motion Skahen, Second Heinen to approve the minutes from the August 24, 2011 regular EDA meeting as presented. Motion approved 4:0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable in the amount of $2,772.22 for MDG services. Strack noted there were five Wednesdays in August and she attended a Planning Commission meeting regarding the CSB development on August 1st. As a result the mileage calculation was increased. Frank arrived at 3:10 p.m. Wick introduced the August financial reports. Strack noted the second of three transfers to the EDA Fund 150 (Revenue) was approved and is apparent in the reports. Motion Heinen, Second Skahen to approve accounts payable and the August financial report as presented. Motion carried 5:0. BFA Grant Disbursement — Minnesota Street Market Chairperson Wick introduced the agenda item. Strack noted that at the March 23, 2011 regular meeting the EDA approved a Business Facade Architectural Grant Program application submitted by Jeff Engholm and the St. Joseph Food Cooperative for improvements to signage and facade work at Minnesota Street Market. The property is at 21 West Main Street. The EDA has received invoices (that were paid by the Co -Op) from two contractors. The invoices total $2,380.08, but Strack has requested an itemized statement for the Mike Lee invoice which is for the creation of the wooden sign. Copies of the invoices were included in the packet. Motion Davey, Second Heinen to approve disbursement of a $1,000 BFA grant to St. Joseph Food Cooperative provided an itemized invoice from Mike Lee's Tae Kwon Do, Inc. was received. Motion carried 5:0. Small Cities Development Grant Application Recommendation. Wick introduced the agenda item. Strack noted Stearns County HRA's Jim Anderson lead meetings last Wednesday for home owners and student rental property owners regarding a potential application to the Small Cities Development Program for rehabilitation grant funds. The owner occupied and rental rehabilitation grant would be submitted with a commercial rehabilitation grant for the City of Albany. The meetings were very well attended. Over 50 home owners and ten rental property owners attended the event. The primary purpose of the informational meeting was to secure letters of interest from those present who were interested in using grant funds for residing, reroofing, new windows, and HVAC improvements. The letters were needed to support a competitive grant application. Over 40 letters of interest from home owners and 10 letters of interest from rental property owners, some with multiple units were submitted at the meeting. A broad cross - section of the community was present from families with young children, to elderly, to persons in nursing uniforms. Stearns HRA commented on the participation in the meeting and noted a definite need. As a result, additional discussion with the Department of Employment and Economic Development regarding expanding potential grant award were going to be undertaken by the Stearns HRA. Strack noted efforts to publicize the meeting effort included two separate mailings to rental property owners (65 entities), an article in the City newsletter, press releases to the St. Cloud Times and the Newsleader, and posting on the City cable TV channel. Materials produced and distributed were included in the packet for Board Member information. Strack further noted the rental housing working group met earlier in the day, reviewed information from the informational meeting on September 21 and a recommendation to the EDA to move forward with the SCDP grant application. Frank noted that he attended the meetings on September 21 and was very impressed with the turnout and with Jim Anderson's presentation. He noted there appeared to be overwhelming support from home owners and that a definite need for owner occupied rehabilitation had been revealed. He inquired as to what percentage of grant funds would be used for owner occupied versus rental rehabilitation. Strack noted the percentage was not established and likely did not need to be established for the preliminary application. She indicated the City Council would be the entity to provide direction on such a percentage. Frank stated he was not yet convinced of an overwhelming need by rental property owners for SCDP rehabilitation grant funds. Motion Heinen, Second Skahen to recommend the City Council authorize submittal of a preliminary application by the Stearns County HRA to the Small Cities Development Program for housing rehabilitation. Motion carried 5:0. Neighborhood Fresh Fare Today & Everyday (NFFTE) Project. Wick introduced the topic. Strack noted over the past several months the EDA has on occasion received information regarding an effort to facilitate the purposing of locally produced food in institutional cafeterias. The initiative is one of the EDA's 2011 goals and has been included in with capital projects. Since the EDA last addressed this issue Strack stated she's had an opportunity to speak openly with several local farmers and ISD 742 representatives regarding such an initiative. It seems interest in the initiative exists. Therefore, it would appear the EDA is ready to take the next step. The EDA's roles would be to: 1. Facilitate a NFFTE network 2. Attempt to match needs with resources EDA Minutes — September 28, 2011 2 Strack noted that several months ago the EDA discussed bringing producers and end users together in an informational, networking session. ISD 742's Nutritionist has offered to coordinate a host facility. Materials included in the packet have been drafted for the EDA's review /approval, they include a meeting flyer to be sent to all producers on file & food service contacts, a presentation for the meeting, and a series of questions to review with producers and end - users. Strack requested discussion and comment on the materials along with authorization to hold the meeting. Frank stated this was a project that while not having a direct impact like construction of a new building had perceived merit in many other ways. He noted the Millstream Arts Festival and the number of creative and eclectic individuals in the community that day. He noted a communities 'creativity factor' boosts economic prosperity according to numerous research studies. Frank noted the idea of NFFTE was intriguing, even if it meant reaching out to producers external to the city due to the type of individuals involved in such an effort coming into the community. Strack noted the St. Joseph Food Co -Op and Minnesota Street Market could also play a crucial role in such a program in that food grading services could perhaps be offered along with an ability to pool insurance not to mention supplying of Minnesota Street Market. Heinen noted the demonstrated health impacts of locally produced foods. Consensus of the EDA Board was to move ahead with the November 2, 2011 event. Board Member Announcements. Wick solicited announcements from Board Members. Frank referenced an email sent by St. Joseph Resident Michael McDonald alleging 'possible serious errors in $20,000 forgivable loan'. Frank inquired as to whether or not any of the EDA Board Members wanted to respond to the email. Strack noted she had forwarded Mr. McDonald's email to Skahen and Heinen earlier in the day but didn't know if they had a chance to review the email. As such Strack invited Mr. McDonald to explain what the email contained. McDonald stated he had a large, internal struggle debating whether or not to email his message. He stated he believes having the Millstream end -cap occupied by a restaurant would benefit the City. He stated he did not object to the owners of Millstream seeking additional assistance. He stated that he has a problem with the EDA not following the letter of the temporary modified tax increment statute or even the spirit of the law and that the EDA was likely putting the City in violation of that law. McDonald inquired as to why EDA Board Members believe purchasing equipment met the guidelines of the Minnesota law and the City resolution. Frank asked if any of the EDA members would like to respond. Consulting EDA Director Strack noted she appreciated public input and efforts to promote accountability. She also shared Mr. McDonald's view that a restaurant occupying the end -cap of the Millstream Building would benefit the local economy. However, she noted in this instance she intended to push back. She stated she took offense at the allegation that the EDA has not followed the law or even the spirit of the temporary TIF authority law. She further took offense at the suggestion of serious internal problems. She noted that while there was equipment purchased, there was also construction and labor costs associated with the project. She noted information on the equipment was needed so as to provide collateral for the forgivable loan. In addition to the restaurant equipment a personal guarantee was also required as security for the loan. The forgivable loan was the outcome of EDA direction and subsequent inquiries by staff to various business owners relating specifically to the 2010 Jobs Bill as signed by Governor Pawlenty in April of 2010. The Petters had initially requested the forgivable loan for costs associated with readying the site for occupancy by a restaurant. The City Council spending plan and approving resolution related to construction improvements to the facility to accommodate a new restaurant. Strack stated that while equipment was used as collateral under a UCC filing for the forgivable loan, the entire project was EDA Minutes — September 28, 2011 3 larger than the loan amount and included construction /labor costs. She further opined that the purpose of the project had not changed since the initial approval. She stated that she had requested authorization from the EDA at the August meeting not because the authorized purpose identified in the TIF agreement and spending plan had changed, but that the contractor and quote had changed. Frank asked for a point of order and mentioned his familiarity with how the intent and /or definitions included in legislation could differ when interpreted. Frank stated that the EDA would prepare a response to Mr. McDonald. McDonald inquired as to whether or not documentation existed at City Hall. Strack invited McDonald to speak with Finance Director Lori Bartlett who had documentation on file for all TIF projects in accordance with state law. Davey noted that he no longer has office hours in St. Joseph, nor does he reside in the City. He stated he has changed employers but retains a vast array of clients in the City of St. Joseph. Davey noted he would like to continue his position as an EDA Board Member, but only if the EDA was agreeable to his continued service. Frank noted representatives on other commissions were allowed to live within two miles of the City and serve on a committee. Strack noted the EDA enabling resolution and bylaws were silent on the matter of residency. Skahen spoke in favor of Davey's remaining on the EDA and his on -going service to the St. Joseph community. The EDA by consensus agreed Davey could /should remain an EDA Board Member unless the Mayor and Council decided otherwise. Strack informed the EDA of an illness in her immediate family that could result in alternating office hours on an occasional basis, including being in the office on Monday of the following week versus Wednesday. Adjournment. Meeting adjourned by consensus at 4:22 PM. L % — c. Cynthia Smith - Strack EDA Director 1 EDA Minutes — September 28, 2011 4