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HomeMy WebLinkAbout[04] Approval of Minutes CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes — Wednesday, February 22, 2012 Present: EDA Board Members Chad Davey, Steve Frank, Carolyn Yaggie- Heinen, Tom Skahen, and Dale Wick. Absent: None. Also present: Mayor Richard Schultz, Council Member Renee Symanietz, Council Member Bob Loso, City Administrator Judy Weyrens, Michael McDonald, Cory Ehlert, Dr. Keith Schleper, Kevin Johnson, and EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the February 22, 2012 regular meeting of the St. Joseph EDA to order at 3:00 p.m. Agenda. Chairperson Wick introduced the agenda requesting the addition of items: 6(b) Demolition Grant for Kevin Johnson (DelWin) and the renumbering of those remaining items under "Business ". Motion by Davey, second by Skahen to approve the agenda with the changes requested. Motion carried 5 -0. Joint Meeting with City Council. Wick introduced the agenda item noting that last month Board /Council Member Frank recommended the EDA and Council meet jointly to discuss how to work together on certain goals. Wick initiated discussion by asking whether or those present thought there was a parking problem downtown. Loso commented that parking was always a problem in the downtown. Weyrens noted one single family rental property owner had come forward to offer property for sale. Frank inquired as to whether or not something needed to be done to respond to that individual. He then asked whether or not something was really going to be accomplished versus just nibbling around the edges of the parking issue. Frank suggested looking at diagonal parking on at least one side of Minnesota Street after jurisdiction for that segment of CSAH 2 is turned back to the City from the County. He also asked whether others thought a parking ramp was needed. Davey suggested that when considering parking the group look not only at where we are now but where leaders want the downtown to be in the future. Symanietz stated that a community center would demand additional parking. Wick stated that diagonal parking on at least one side of the street should be investigated. Schultz noted that he was the impetus for getting the joint meeting together. He noted the EDA and the City Council have a lot on their respective plates and that he wanted to ensure both entities were working together in the same direction. He stated that beautification should be worked and that work should not be limited to downtown. Schultz also stated that it would be nice if the EDA would conduct visioning for the downtown. That visioning could address what the downtown was going to physically look like in three years, five years, and ten years. He stated that part of what the EDA should be doing is visioning; as November 30, 2011 EDA Meeting Page 5 of 36 Page 11 examples Schultz cited answering questions like what buildings should look like in the downtown and what the corridor from 94 to downtown should look like. Schultz opined that the perception of a communication gap between the Council and the EDA still existed despite his telling the EDA about it a year ago. He asked the EDA what they could do to get the word out. Schultz noted that he did not see EDA minutes or reports from the EDA. He opined the EDA annual report was a boilerplate document. Symanietz stated that she is not always in the loop about what business is coming into town or leaving town. She often has to hear it on the street rather than from the EDA. Schultz asked the EDA whether or not there was a plan that was being followed or whether they were just reacting to items as they came up. Skahen noted information in the EDA packet regarding branding. He stated that one concept for branding your city is to come up with a list of assets and see what you want to bring into town. This includes where it would go, for example, if you want to bring more residents into town or you want to promote the fact St. Joseph is a college town. Schultz stated he was not interested in branding and that the EDA should figure out how to market the City and bring that plan to everyone else. He noted the EDA window clings developed last year were different from the City water tower design. He suggested the EDA explore what branding is worth and what it costs. Heinen stated the EDA budget has been declining and that it is difficult to update studies and documents and create renderings when capital projects aren't budgeted. She opined St. Joseph is an organic community and the EDA is a forward thinking group. She suggested the EDA has in the past tried to be a fluid group and cohesive group at the same time. Davey stated that it is difficult to balance planning and being reactive to immediate issues. He stated the City has a few vital businesses and the construction of new CSAH 2 is a positive activity. Those are strengths that could be built upon with measureable results. Skahen opined that if assets were listed the EDA/City could finally get ideas together and visioning and branding could follow. He also stated that visioning and branding are processes that can't be done overnight. Symanietz stated that the City of Richmond had created a brand around the presence of the chain of lakes. She inquired as to what people would say about St. Joseph. Schultz stated he wanted to address the budget issue brought up by Heinen. He stated the EDA was a group looking at business vitality but should that the EDA should also look at planning and infrastructure. Schultz stated that if the EDA needed $40,000 or $80,000 it needed to put a specific detail together and approach the City Council. For example, Schultz stated that the EDA should inform the Council of where parking needed to go and then ask for money to get it done. Schultz stated his next question was for Weyrens or Strack. He inquired as to the extent of overlay between EDA and HRA powers, and the process involved in expanding the EDA powers to include HRA powers. Davey inquired as to how one determines what is an EDA power and what is an HRA power. Schultz suggested a perfect role for the EDA to take up was to examine EDA and HRA powers and determine what was what. For example, Schultz suggested the EDA examine its powers to determine what it could do with Campus Villas in the event it was owned by the EDA or the City. He asked for recommendations from the EDA. February 22, 2012 EDA Meeting Page 12 Page 6 of 36 Wick stated he was not sure where the boundaries between HRA and EDA powers occurred. Strack stated that the EDA has under the enabling resolution the ability to use HRA powers. Strack stated the EDA has used certain redevelopment powers but has not in the past felt a need to address low income housing or to own low income housing. Davey inquired as to whether it was time for the EDA to consider owning land. Davey noted a representative from DM Builders had approached the EDA last November regarding purchase of land by the EDA and now Campus Villas was mentioned. Frank stated that as he listened to the discussion it occurred to him that the EDA keeps bringing people in to comment, for example, the Governor's Design Team and Dr. Kent Robertson from SCSU but he doesn't see for what purpose. Frank opined there is not a sense of vision or where the EDA wants the city to go or what it wants the city to do. He stated the EDA has done parts of this but not the whole. Frank opined there was very little social capital in the St. Joseph. He related this to not having a purpose of where the EDA wanted to be. Skahen conceded Frank may have a point but noted he'd been an active member of the St. Joseph business community for over 20 years and while he didn't live in St. Joseph he felt very much part of the community. Symanietz stated that she tells people who aren't from St. Joseph that the City has X, Y, and Z and they are surprised to hear about those items. She opined that people outside of the City just don't seem to know about things happening in St. Joseph. Skahen suggested the group identify a place to start. Frank stated he wanted to get something accomplished. He stated members of the community just don't know each other and that social capital was lacking. He further stated that he didn't care what larger cities were doing to expand social capital but that he was interested in learning what communities with populations between 8,000 and 15,000 were doing. He added that he hates to reinvent the wheel. Symanietz used the City of Spicer as an example. She noted the slogan "Spicer is Nicer" and that the City featured boulevard and median plantings of shrubs, trees, flowers, and the like. Frank inquired as to how Spicer established median plantings. Schultz opined that trees in a boulevard don't make a community. He suggested festivals bring communities together, so would a water park, and so did the school. Frank reiterated that social capital was important. Symanietz agreed saying that block parties that used to happen in Graceview didn't occur any more. Loso stated that diagonal parking adjacent to CSAH 2 (Minnesota Street) wouldn't work as long as the County owned the roadway. Loso next stated that he would like to see more realistic goals that could be accomplished. He stated that that could start with a discussion of what the EDA could afford to do, for example, what streetscape amenities could be installed in the downtown. Heinen stated that she was not on the same page with some of those present. She stated she sees real progress being made in St. Joseph. She suggested better communication but expressed difficulty in comprehending how that could be achieved. February 22, 2012 EDA Meeting Page 13 Page 7 of 36 Skahen opined the EDA had been making progress and that maybe it is not sufficient progress or that some persons just aren't recognizing progress. Loso stated that his concept of the EDA's purpose was to bring businesses into town and to create tax base. Loso stated he was not a believer in TIF or abatement. Skahen opined that TIF used for expansion at St. Joe Meat Market and abatement used for Coboms resulted in job creation and business investment. Loso opined both projects would have happened without the use of TIF or abatement. Skahen disagreed. Symanietz asked about what was being done to retain businesses. Davey responded by recalling projects at St. Joe Meat Market, the former Loso's Grocery Store which was now the Minnesota Street Market, and mentioning Millstream Shops and Lofts. Frank stated the EDA Annual Report was too long and that Powerpoint presentations needed to be concise and simplified. Frank stated that citizens were not going to read that thing (referring to the annual report). Schultz stated that communication was a problem. The joint meeting adjourned. Approval of Minutes. Wick introduced the minutes from the January 25, 2012 regular EDA minutes. Wick noted the minutes should be updated to reflect discussion and approval of a change of meeting time for the regular EDA monthly meeting. To those ends the following is to be added to page 2 of the January 25, 2012 minutes: The Board discussed the EDA meeting time and the potential to change from 3 p.m. to 5 p.m. on the fourth Wednesday of each month. Motion Davey, Second Heinen to change the regular meeting time of the EDA from 3 p.m. to 5 p.m. on the fourth Wednesday of each month. Motion carried 5:0. In addition a correction to the title block was needed changing "Aurthority" to "Authority". Motion Frank, Second Skahen to approve the January 22, 2012 minutes with the aforementioned revisions. Motion carried 5:0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for February 2012 in the amount of $2,563.25 for MDG services. Wick introduced the January financial reports. Strack noted revenue for 2012 year to date was $54.50 with expenditures of $4,669.19. First half property tax payment expected in July following that revenue transfer will occur. Strack also noted RLF balance of nearly $15,000. Motion Davey, Second Heinen to approve accounts payable and the January financial reports as presented. Motion carried 5:0. Final Adjustment Payment to TIF 2 -1 Millstream Shops /Lofts. February 22, 2012 EDA Meeting Page 14 Page 8 of 36 Wick introduced the agenda item. Strack noted Finance Director Lori Bartlett has calculated a final disbursement for TIF 2 -1 in the amount of $1,284.90. The final disbursement represents 90% of the clean -up tax settlement received in January of 2011 and reflective of market value homestead credit received for the property. Motion Skahen, Second Davey to approve disbursements as read for the record. Motion carried 5:0. BFA Grant Application: Dr. Keith Schleper, Chiropractic Connection PLLC. Wick introduced the agenda item. Strack noted Dr. Keith Schleper was in attendance. She stated Schleper contemplates the addition of four foundation plantings, installation of trees, turf restoration, and the replacement of an existing sign face for the property at 709 County Road 75. She noted the sign face had already been changed out. Davey read portions of an email from St. Joseph resident Michael McDonald into the record as follows: "Just a thought about the request for a BFA Grant regarding the changed sign at the Chiropractic office. Does replacing one sign face with another that merely changes the name of the business located in the building qualify as beautifying or anyhow changing the city's business landscape? The former sign really was not in bad shape at all. Also there are already bushes and some trees in place around the building and adjacent area. The applicant checked the following boxes on the application: 1. Will positively contribute to the city's revitalization/renewal efforts. (Specifcally ow)? 2. Will eliminate a blighting influence. (How. . . one sign face was replaced with another? P.S. the temporary sign located below the pylon could be blighting) 3. Will result in a visible improvement that would not be made otherwise. (Why say this ?) The new sign is already up. Is this type of project really the main intent of the whole BFA Grant program? Definition of 'Compelling' from an on -line legal dictionary. Was there a compelling reason the business did not request the grant before putting up the sign ?" Wick noted the EDA has used the BFA program before for signage and landscaping. Wick inquired of Schleper whether or not he was planning on adding landscaping. Schleper confirmed additional landscaping was planned. Weyrens inquired of Schleper whether or not the temporary sign on the site would be removed. Schleper stated the Mayor has told him it was grandfathered in. Discussion regarding which sign and whether or not a variance was needed ensued. Schleper is to work with Weyrens to resolve the issue. Heinen inquired as to what the EDA wanted to do with the BFA grant request. Frank stated the question he had was what the BFA program meant by 'beautification' and whether it meant only changing a sign face. Wick stated the BFA request included landscaping costs. February 22, 2012 EDA Meeting Page 15 Page 9 of 36 Schleper stated he hadn't looked at landscaping until Strack told him it would be needed to consider application versus just signage alone. Wick stated Schelper could just apply for BFA funds to reimburse landscaping activities. Strack requested clarification of Wick's comment. She inquired as to whether he meant the EDA could limit reimbursement to 50% of the landscaping activities to a maximum of $1,000 or whether Wick envisioned include signage and landscaping as grant eligible. Wick responded both the sign and landscaping could be eligible. Motion Skahen, second Davey to approved BFA reimbursement for Chiropractic Connection, PLLC provided at least 50% of the reimbursement was attributable to landscape costs. Motion passed 4:0 with Frank abstaining indicating he lacked sufficient information. Wick asked resident Cory Ehlert if he had anything to add to the meeting. Ehlert noted he was just observing but, since he had an opportunity he wanted to let the EDA know that Kennedy Community School was thinking about re- occupying the former Kennedy Elementary School. Brief discussion about existing occupants and relocation thereof occurred. Strack suggested property and buildings adjacent to CR 75. Demolition Grant Request — Kevin Johnson; Delwin. Wick introduced the agenda item. Strack noted Kevin Johnson was present at the meeting. She stated he had submitted an application for a demolition grant to remove the existing Delwin Ballroom structure and return the six acre parcel to a vacant lot, readying it for redevelopment. Johnson noted the building had been vacant for four years and that the 18,000 s.f. structure was simply not able to be leased or sold. Johnson noted the six property would likely be more valuable without the structure. Johnson furthermore commented that the ceiling height is a major detraction to the structure. He noted he could have sold it previously if the side walls were 16 feet or greater in height. Johnson proposed to remove walls from building and re -erect at his existing facility in Sauk Rapids. Frank inquired as to what remains for demolition if the walls are removed. Johnson stated the roof, foundation, remedial surface grading, capping of utilities would be grant eligible. In addition he noted asbestos has been found on site. Frank asked if removal of the structure would make the lot shovel ready. Strack noted utilities were at the site and if the entire six acres was to be occupied the lot would be shovel ready. She noted the parcel was zoned for highway business and as such could be further subdivided into several Tots as the minimum lot size was only 10,000 sf. In that case utilities would need to be readdressed. Skahen inquired as to what the benefit to the City would be in the event a grant was issued. Johnson replied the lot would be more salable without the existing structure and that would be a benefit to the City. Frank asked a local real estate professional present at the meeting for his thoughts on the proposed grant. Cory Ehlert stated the lot would be likely sell better without the building and it had the potential to be subdivided resulting in more concentrated redevelopment. Frank asked Strack to comment on whether or not in her opinion the proposed demolition would be a good thing. Strack replied that taxes generated by the existing structure would be lost post - demolition. However, since the building had been vacant for several years, had a history of vacancy prior to that, and needed February 22, 2012 EDA Meeting Page 16 Page 10 of 36 significant repair /remodeling to be occupied, the structure in effect was functioning as an impediment to redevelopment of the six acre parcel. Strack also noted that the potential use of redevelopment TIF on the six -acre parcel would be lost if the existing structure was removed from the property and a vacant shovel ready lot was created. Motion Frank, second Heinen to approve the demolition grant application matching up to $2,500 in demolition costs on a reimbursement basis. Motion carried 5:0. Marketing Strategy: First Steps. Wick introduced the agenda item and asked the Board whether they wanted to address this item at this meeting. Strack noted the material included in the packet was aimed at helping the EDA Board decide where to start with this 2012 goal. Davey suggested each EDA member bring to the March meeting a list of three objective, measurable, realistic, specific items that the EDA could accomplish within the next five years. Davey cited a handicap parking stall in the downtown as an example. Heinen suggested that in addition each EDA member should bring to that same meeting a list of three things for which St. Joseph could be branded. Skahen suggested that would be like listing assets. Strack recommended rounding out the assignment by each member asking three people who are familiar with but live outside of St. Joseph what first comes to their mind when asked what they think of St. Joseph. Wick recapped that for the next EDA meeting, each Board Member was to bring a list of three: 1. A list of three specific work items the EDA could accomplish within five years. 2. A list of three items or assets for which St. Joseph could be branded. 3. Three quotes from people who live in the area but outside of St. Joseph responding to what first comes to their minds when they think of the City of St. Joseph. Board Member Announcements. Wick introduced the agenda item. Strack said she spoke with Bob Swanberg at Stearns HRA earlier in the afternoon regarding status of Small Cities Development Program pre - application. Swanberg noted the Albany /St. Joseph co- preapplication was not approved by the Department of Employment and Economic Development. Strack noted Swanberg said program oversight has completely changed following an audit by HUD. This resulted in several changes to past practices including what projects were selected. Strack noted that Swanberg invited her to a meeting with DEED Regional Representative Jeremy LaCroix when the program details were more discemable. Adjournment. Motion Davey, second Skahen to adjourn. Motion carried 5:0 meeting adjourned at 7 p.m. . Cynthia Smith - Strack EDA Director February 22, 2012 EDA Meeting Page 17 Page 11 of 36