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HomeMy WebLinkAbout[05a] May 23, 2012 Regular Meeting CITY OF ST. JOSEPH EC ONOMIC DEVELOPMENT AUTHORITY Meeting Minutes — Wednesday, May 23, 2012 Present: Chair Dale Wick; Board Members Tom Skahen, Steve Frank and Larry Hosch. Absent: Chad Davey Also present: City Administrator Judy Weyrens, Adeel Ahmed, Chris Rice, Chaz Rising, and Margie Hughes. Call to Order. Chairperson Wick called the May 23, 2012 meeting of the St. Joseph EDA to order at 5:00 p.m. Oath of Office. City Administrator Judy Weyrens administered the Oath of Office to new Board Member Larry Hosch. Agenda. Chairperson Wick introduced the agenda. Motion by Frank, seconded by Skahen to approve the agenda as presented. Discussion: Frank questioned if the EDA is discussing the demolish grant program. He would like to discuss time requirements for completion. Motion carried 4 -0. U of M Extension, Adeel Ahmed. Board Chair Dale introduced guest speaker Adeel Ahmed of the University of Minnesota Extension Office. Ahmend stated that the represents the economic development division of the extension of the office and was asked to present information on their Business Retention and Expansion (BR &E) Program. He stated that the extension department has been providing economic services for a number of years. The purpose of the BR & E program is to: • Demonstrate to existing businesses that the community appreciates their contribution to the economy. • Help existing businesses solve problems • Assist business in using programs aimed at helping them become more competitive • Develop strategic plans for Tong -range BR & E activities. • Build community capacity to sustain growth and Development Ahmed further stated that the benefits of the program include: • Providing coaching and training to volunteers. The U of M does not complete the BR & E • Reducing costs to the firms • Making the firms more competitive • Improving services making local government more responsive • Enhancing human capital The program offered by the U of M consists of two parts. The first part includes informing the community of the program, building a leadership team and task force, recruiting volunteers, training for visits, completing visits and finally tabulating surveys. This process takes approximately six to eight months. Phase Two starts as soon as the surveys are tabulated and includes: responding to individual May 23, 2012 EDA Meeting Page 1 3 concerns, analyzing survey data, writing the research report, conducting a retreat to review the process, developing priorities and projects, writing the summary report and implementation. He presented two options. The first included training the EDA to complete their own project, at a cost of $ 3,000. The second option or full program costs $ 12,000 and includes the analysis, written report and two years of coaching and support. Ahmed stated that while the program may seem expensive, organizations such as the Initiative Foundation and Utility Companies have been supportive providing funding assistance. Wick inquired how to find 20 to 30 volunteers. Ahmed noted it is a combination of community members and businesses. He noted that in Monticello the Chamber was the co- sponsor and two members were on the leadership committee. Hosch questioned how the leadership and participants are determined and if politics plays a role. Ahmed indicated that the committees and teams must include a broad mix of the community and must include business, city and community. Part of the project will include assisting with the development of committees. Frank stated that in his experience the analytical process is critical to the success and if the program is completed he would recommend contracting for the full services to maximize value. Ahmend provided a snapshot of the analytical report. No action was taken by the EDA. Rice Builders. Wick introduced Chris Rice and Chaz Rising of Rice Builders to discuss their experience in developing the Coborn's project in St. Joseph, and share comments and concerns on the development process. Rice indicated that when working with many communities they build the same box, but how you get from "a to b" is quite different. By taking more time upfront, whether it is design or building standards or discussing how the building operates and looks, the construction end has become quicker. Collaboration is more important than it was in the past. He felt that St. Joseph was phenomenal to work with. Rice Builders believes in starting early with the community before plans are established. He indicated they met with Ron Wasmond, Building Inspector, early and discussed the projects and schedule, working together before a shovel was put in the ground. Working with staff went well while the process was a challenge at times. Rice reported they are seeing more incentives offered by cities and stressed the importance of sharing what is available up front. Skahen questioned if the incentives or the process impacts the continuation of a project. Rice indicated Coborns would not have built without the tax abatement incentive. The pro forma is very tight and it is a long term investment which in some cases shows a low return. The tax incentives are important and Coborn's most likely would not have built without them, understanding the City needs to meet the " but -for" test (but for incentives the project would not go forward). They suggested the City identify the true issues upfront because if a business needs to go before the public, they want to know what the true issues are. Commissioner inquired if they encountered anything that was hard to overcome. They noted the turn lane and the County road access were challenging. They suggested the website information include available incentives as it makes it easier for companies such as Rice Builders. Skahen inquired if Rice Builders received any negative comments. Rice noted they did receive some comments which everyone wanted to work on. He noted that in all projects you will have ups and downs; it is how you manage it. It is difficult to overcome the transparency issue and release of May 23, 2012 EDA Meeting Page 2 confidential data requiring the request for financial information to verify that there is a need. It is more seldom that it is being confidential. They also noted the green movement was in the works for quite a long time including energy conservation and rain gardens, and it has helped increase the bottom line. Approval of Minutes. Wick introduced the minutes from the April 25, 2012 regular EDA meeting. Motion Frank, Second Wick to approve the April 25, 2012 minutes. Motion carried 3 -1 -0, with Hosch abstaining. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for May 2012 in the amount of $2,511.35. Motion Skahen, Seconded Frank to approve accounts payable and the April financial reports as presented. Motion carried 4:0. CIP Redistribution. Wick introduced the agenda item and referred to a memo which recommended redistribution of funds in the capital improvement fund. Frank requested adding language to limit the time allowed for completion of demolition projects. Motion by Skahan, Seconded by Wick to redistribute funds within the Capital Improvement Program line items including (1) Transfer of $6,500 from Line 1202 (Let's Go Downtown) to Line 1208 (Demolition Grant Program). The $6,500 is asbestos abatement for Cone Castle from 2011, as the EDA did not have a demolition grant program line item in 2011. (2) Zero out the following project lines with transfers from Line 1202 (Let's Go Downtown): a) Line 1206 (Producer /Processor Institute) which was closed in 2011. 6) Line 1204 (Rental Conversion) which is on hold and c) Line 1205 (CSHA 2/3). Motion carried 4:0. BFA Grant Closet to Closet. Wick introduced the agenda item noting Ms. Margie Hughes, St. Joseph Action Group d.b.a. Closet to Closet has submitted an application to the Business Facade Architectural Grant Program for a matching grant to fund 50% of the cost of $400 sign. Hughes noted she was encouraged to make application. She noted Bob McCoy, formerly in the corner shop where Bello Cucina is now operating, created an official logo, made the sign, hand painted and installed the sign at a cost of $400. Commissioners discussed the need to review the BFA requirements as they relate to the benefits of projects to the City. Motion by Frank, Seconded by Skahen to approve a $200 matching grant contingent upon receipt of an invoice from Bob McCoy. It was further moved that the board review the Facade Architectural Design Grant Program and consider action on the timelines and work completed prior to a grant application, limiting dollar amounts and reviewing eligibility requirements. Motion carried 4 -0. BFA Grant Downtown Hanging Baskets. Wick introduced the agenda item referencing an application from the St. Joseph Action Group for BFA funds for hanging flower baskets. Margaret Hughes was present and reported it is the goal of the group to sell thirty baskets. They will be hung on fifteen highly visible light posts along Minnesota and College May 23, 2012 EDA Meeting Page 3 Avenue. Funding is requested to assist with financing 15 brackets and holders which are estimated to cost $2000 to $2500 plus labor for the installation estimated at $300. Drip pans are estimated at $300 or $10 per pot. Maintenance of the baskets for approximately four months is estimated at $1000 per month or $4000. Hughes noted the proposed hanging baskets will positively contribute to the City's revitalization effort and downtown beautification, from the Wobegon trail to downtown. The project was started by Carol Theisen. The profits made at Closet to Closet Thift Store go back to downtown. Hughes noted Sunset will need to make the brackets. Terry has the authority and responsibility to oversee the project including daily watering and fertilizing. The project has to pay back the labor costs. It was estimated the baskets would b e installed by June 16 and be up for approximately 100 days. Commissioners discussed the funding source for the baskets including the Let's Go Downtown fund or BFA Grant. It was noted the BFA eligibility guidelines do include site landscaping, with all work done in public way or be publically visible. Commissioners noted that while it fits within the grant program it is definitely not what was envisioned. The Commission concurred that 30 baskets will be attractive and add to the downtown. They inquired what happens if the St. Joseph Action Group fundraises the full amounts. Hughes noted that instead of 30 baskets they may have more. She noted they are hoping St. Ben's will want more. Motion by Wick, Seconded by Frank to approve a request for $1000 to be used for the brackets for the proposed hanging flower baskets to be placed along Minnesota and College Avenue, noting the EDA supports the location, the request for funding for the capital purchase of the brackets qualifies under the BFA Grant Program. Motion carried 4 :0. . BFA Grant Cone Castel. Wick introduced the agenda item and referenced a request by Jason Nuerburg, Owner of Cone Castle for landscaping including grass, trees and shrubs. The total project is estimated to cost $3000. They have not yet started the project. Hosch noted he is relatively new to the EDA but feels the funds should go toward projects that go above and beyond general lot preparation. Commissioners concurred this area of the grant eligibility should be reviewed and include more restrictions. Motion by Skahen, Seconded by Frank to approve $ 1,000 from the BFA grant for Cone Castle located at 1181 Street NW for landscaping trees and shrubs, but not for the planting of grass. It was further moved that the EDA review landscaping requirements for the BFA Grant Program. Motion carried 4 :0. EDA Marketing. Due to the length of the meeting, discussion on EDA marketing was tabled to the June meeting. Board Member Announcements. Commissioners were reminded to attend the Downtown Visioning joint meeting with the City Council, Park Board and Planning Commission on Wednesday, June 6 at 5 p.m. at the Fire Hall. Adjournment. Motion Skahen, second Frank to adjourn. Motion carried 4:0 with the meeting adjourning at 6:45 p.m. May 23, 2012 EDA Meeting Page 4 W