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HomeMy WebLinkAbout[04] Minutes CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AURTHORITY Meeting Minutes — Wednesday, January 25, 2012 Present: EDA Board Members Chad Davey, Steve Frank, Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: None. Also present: Mayor Richard Schultz and EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the January 25 2012 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Election of Officers. Chairperson Wick introduced the topic of election of officers. Wick noted that State Statutes and EDA By- Laws require the EDA to conduct an annual meeting, part of which is election of EDA officers. Strack noted that in 2011 the EDA Officers were: Chair — Dale Wick, Vice Chair — Tom Skahen, Treasurer — Tom Skahen, and Secretary/Assistant Treasurer — Carolyn Yaggie- Heinen. Frank stated that there was a vacancy in the EDA Board and suggested the election of officers be postponed until a future date. Wick clarified that the EDA by laws state that the EDA Board of Directors hold office until the first regular meeting of the next year and until his /her successor shall have been duly elected or appointed and qualified. Wick further stated that he had planned to propose an addition to the EDA agenda relating to amendment of the enabling resolution as a means of addressing issues addressed at a previous City Council meeting. Frank noted he wanted to address other items relating to the Enabling Resolution as well, such as the EDA meeting time, City Council's authority over the EDA, and requiring persons who serve on the EDA to live in the City. Skahen asked whether or not a motion to appoint officers was in order. Wick confirmed unless the Board voted against taking up the election of officers it would stand. Motion by Skahen, second Heinen to reappoint Wick as Chair, to reappoint himself as Vice Chair, to appoint Davey as Treasurer, and to appoint Frank as Secretary. Motion carried 4:0 with Frank abstaining. Agenda. Chairperson Wick introduced the agenda suggesting the addition of items: 6(a) Consideration of an amendment to the EDA Enabling Resolution, 6(b) consideration of new EDA meeting time, and renumbering of those remaining items under "Business ". Motion by Frank, second by Skahen to approve the agenda with the changes suggested. Motion carried 5 -0. November 30, 2011 EDA Meeting Page 11 Approval of Minutes. Wick introduced the minutes from the November 30, 2011 regular EDA minutes. Motion Frank, Second Skahen to approve the November 30, 2011 minutes as presented. Motion carried 4:0 with Davey abstaining due to lack of attendance at the November 30, 2011 meeting. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for December 2011 and January 2012 in the amount of $5,334.07 for MDG services. Strack noted the total hours of service provided for 2011 exceeded contract amount by 23 hours. She noted in years past she `donated' hourly overage to the EDA versus requesting a pay -out or carry over. However, given the illness in her immediate family she was requesting the EDA allow her to carry over the 23 hours into 2012 in case emergency leave was required and /or to accommodate an extended leave for travel. EDA agreed by consensus to the carrying over of 23 hours to 2012. Wick introduced the December financial reports. Motion Skahen, Second Davey to approve accounts payable and the December financial reports as presented. Motion carried 5:0. EDA Enabling Resolution Amendment. Wick stated that the City Council when meeting on January 19 approved a motion to amend the EDA Enabling Resolution relating to Board Member qualifications. Wick stated a majority of the City Council of the City Council on prefer specific language be added to the EDA enabling resolution requiring any Board Member to live in, work in, or own a business in St. Joseph when they are appointed to office. Wick distributed proposed language to the EDA Board which included the following proposed amendment to Section 2 of the enabling resolution: 2.01 The EDA shall consist of a governing body of five commissioners. Two of the commissioners shall be members of the City Council. All commissioners shall be appointed by the Mayor with the approval of the City Council. Those initially appointed shall be appointed for terms of two, three, four, five, and six years respectively. Thereafter all commissioners shall be appointed for six year terms. A vacancy is created in the membership of the commission when a City Council member of the Authority ends Council membership or when a commissioner gives notice of resignation to the Council. "All me Inust be rs*nts of the COoaf gt ,osep:h or wok in, overt,; or °Pk business within thi`oiuy limits of Sty Joseph at the time 0! ofappointment A, pointments run unlit the firstregular meeting fallowing the conclusion of the term' and members seerve until his or her ucce sor shall have been duly' rppoinied and qualified". Frank stated that he would be open allowing persons who reside within the orderly annexation area to serve on the EDA since they would in theory be residents of the City at some point in time. Wick noted he was opposed to such a measure as there was an existing industrial park in the township that could be impacted by such a definition. Frank inquired as to what other items within the enabling resolution could be changed. Wick clarified that the City Council had the authority to change any part of the resolution following a public hearing. January 25, 2012 EDA Meeting Page 12 Motion Davey, Second Heinen to recommend the City Council approve an amendment to the enabling resolution requiring EDA appointees live in, work in, or operate a business within the City of St. Joseph at the time of appointment. Motion carried 3:0 with Frank and Skahen abstaining. Approval of Disbursements: Tax Increment Financing and Tax Abatement. Wick introduced the agenda item. Strack noted that Finance Director Bartlett had prepared final disbursements for 2012 as follows: TIF 1-4, VicWest (payable to MinnWest Bank) in the amount of $29,873.24 representing 90% of the available increment received from the district; TIF 2 -1 Millstream Shops and Lofts in the amount of $12,728.19 equivalent to 90% of the increment received from the district; and, for a tax abatement agreement with Coborn's Inc. $50,000 for 2011 abated taxes. Motion by Davey to approve disbursements as read for the record, Second by Skahen. Motion carried 5:0. EDA Annual Report - 2011. Wick introduced the agenda item. Strack presented an overview of the document noting: • Those serving the EDA in 2011 were: Chad Davey, Steve Frank, Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. • The EDA met 13 times in 2011, 11 regular meetings and two special joint sessions with the City Council. • 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 49 Workforce Centers across the state. • Under the auspices of "Organizational Development' the EDA met 13 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. January 25, 2012 EDA Meeting Page 13 S • 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 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. The incubator has been used by members of the public. 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 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): January 25, 2012 EDA Meeting Page 14 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). Following the presentation, Chairperson Wick presented additional ideas for goals including: examining the regulatory process for efficacy and efficiency (business development function) and creating and deploying a marketing concept for the City (market development function). Wick also noted a desire to refocus on existing businesses. Frank requested EDA participation in goals /work plans relating to parking in the Central Business District, moving of power lines in the downtown, and helping with marketing of the former Credit Union building that the City just purchased. Discussion clarified the intent is that the EDA assist the City Council as requested regarding the aforementioned item. The Council is to be the lead in pursuing downtown parking, movement of power lines in the downtown, and taking direction following recommendation of the facilities committee. Skahen mentioned meeting with the City Council and Planning Commission when possible to make sure all are on the same page with the aforementioned projects. Motion Skahen, Second Wick to approve submittal of the Annual Report to the City Council with the addition of the three aforementioned goals. Motion carried 5:0. Strack recused herself from the meeting at 4:50 p.m. Requests for Proposals: Economic Development Consultant The EDA reviewed six proposals for Economic Development Consulting Services. The following were noted. The proposal from Meyer indicated the business was a one person shop, a sole proprietorship. January 25, 2012 EDA Meeting Page I 5 7 The proposal from CEDA was a $1,900 difference than the existing contract. There were no complaints regarding MDG, performance was favorable, and proposal /approach was forward looking. Consensus of the Board was there was not a compelling need to interview any applicants at this point. Motion Skahen, Second Davey to renew contract with MDG, Smith - Strack for 2012. Motion carried 4:0 with Frank abstaining. Board Member Announcements. None. Adjournment. Meeting adjourned by consensus at 5:17 following a Motion by Skahen and a Second by Davey. Cynthia Smith - Strack EDA Director January 25, 2012 EDA Meeting Page 16