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HomeMy WebLinkAbout[04] Minutes CITY OF ST.JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday November 28, 2012 Present: Board Members Tom Skahen, Larry Hosch (5`10 pm), Doug Danielson and Steve Frank. Absent: Chair Wick. Also present: Michael McDonald, Rick Schultz, Kip Cameron representing GTI Properties, Brian Schoenborn representing GTI Properties, Joe Walz representing Walz Properties LLC, Brian Anderson representing Walz Properties LLC, Randy Sabart SEH City Engineer, Taleiza Calloway from The Newsleader, and Cynthia Smith-Strack EDA Director. Call to Order. Vice Chairperson Skahen called the November 28, 2012 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Vice Chairperson Skahen introduced the agenda. Three items were contemplated for addition to the agenda as follows: 1. Item 5(d)Approval of BFA Disbursement for Kay's Kitchen Mural 2. Item 6(fl Discussion of Downtown and Location of City Offices 3. Item 7(a) Date of Next Regular Meeting Motion by Frank seconded by Danielson to approve the agenda with the contemplated additions. Motion carried 3-0. Public Comment. Vice Chair Skahen introduced representatives from Walz Properties, LLC and GTI Properties. Strack noted the City Engineer was also present. She stated Mr. Joe Walz recently contacted EDA Chair Dale Wick regarding information/discussion regarding costs of e�ctending utilities to property west of new CSAH 2 and east of I-94.Walz indicated he was conducting research for a few potential commercial users.Wick and MDG responded to Mr.Walz with the best available information and an invitation to attend the November 28, 2012 Regular EDA meeting to discuss possibilities and estimates with the full EDA Board. Strack noted that MDG had submitted our CEDS projects for next year, which include the extension of utilities to Walz/Gateway property and construction of coliector roadway from new CSAH 2 to Walz property. She noted the 2012 project applications were not accepted as a federal need as defined by household income and/or unemployment rate was not present. She also stated a map illustrating service routes and preliminary engineering estimates included in the CIP were included in the packet. Strack indicated that at this point the property is not annexed, rezoned, or platted. Platting of the property subsequent to annexation and rezoning is a necessary first step toward development and should likely be the responsibility of the property owners. In the event the property owners do not wish to plat at this time, a master plan similar to that developed for Gateway Commons would be appropriate. Finally, she stated staff discussed the extension of utilities to these site at the November 14th staff meeting. City Engineer Randy Sabart noted an anticipated difficulty in securing needed easements to extend utilities from where they exist to the Walz/GTI properties. He suggested Walz/GTI may wish to request such easements from Bechtold and Puringer representatives. Strack invited Walz to comment on his activities over the past few months. Walz noted he has been in contact with Lee Miller the Northwest MN DEED District Representative and Sarah Walbert from DEED regarding innovative technology grant fund. He noted the fund has a$1 M balance but the funding will be reassigned next year. Walz noted the DEED representatives seemed interested but made it clear commercial projects were not eligible for funding. Walz asked for support in seeking grant funds. November 28,2012 EDA Meeting Page 1 � Frank asked for additional background on previous discussion. Strack explained who the DEED representatives were, how the grant program worked, and the fact that at this point we didn't have a plat, a feasibility study for utility costs, and most importantly we didn't have a committed project, unless the Walz's or GTI had a buyer/project. Frank noted he was very concerned about the City budget and the fact that funding for capital projects was severely limited. He asked for comment from the City Engineer regarding the project. Sabart distributed a map of the subject property and explained how utilities would be provided at the `Gateway Commons' site. Water mains were already in place since they connect to the water treatment plant south/west of I-94. He indicated that sewer main planning had to include additional service areas in the vicinity of the Gateway site. In addition, easements would be needed and a master plan or plat would be needed to further pinpoint potential costs. At the present time the probable cost was$3.8M. Schoenborn inquired as to whether or not an interim solution would be to run a main adjacent to Minnesota Street. Sabart stated that there may not be enough space in the existing right-of-way as the main would have to be placed at considerable depth to allow for adequate flow. Walz asked if a temporary arrangement could be made. Sabart noted that was what was envisioned in 2010/11 when the Gateway concept plan posted on the City's website was made official. Walz suggested that the temporary arrangement could assist in cash-flowing the$3.8M build out. Sabart cautioned that property owners could likely not be asked to pay finrice for utilities. Strack asked Wa{z and GTI for an update on the sale of property to end-users.Walz noted he had contacted CSB/SJU about a hockey arena and that he had talked to persons regarding a hotel, nursing home, and gas station. Strack asked for confirmation that a project was not imminent. Schoenborn concurred but indicated a perceived pent-up demand for property. Strack inquired as to whether Walz/GTI are going to work together and, if so, what the perceived funding looked like. Specifically she asked whether or not the developers were looking at self-funding the improvements, requesting assessment bond, looking for grants from DEED, CEDS, looking for claw-back provisions, and/or thinking of using TIF. She noted if TIF was used up front for utilities it would not be available for individual projects. Cameron stated neither Walz or GTI could afford to self-fund the project. Schoenborn stated 'Gateway' was much more than just the area by Lake Sarah. He opined the `Gateway' development would jump- start development throughout the St. Joseph area. He stated for years the talk of a new roadway intrigued prospects but now that the roadway was in place discussions have sped up. Skahen asked what the next step should be. Strack stated the development process would technically begin with a petition for annexation, rezoning of the property, concept planning, platting, discussions of how to finance the project, feasibility study/construction plan development, and easement acquisition. She noted the some processes could occur simultaneously. Frank stated that the EDA has made a commitment to the development of shovel ready lots for commercial and industrial development. He stated planning tools are in place, concepts for`Gateway' have been reviewed. He inquired as to how to move the discussion to the next level. Hosch stated extending utilities to the `Gateway' site is a problem most other communities would love to have. He stated this is a highly complex and encompassing project. He noted industrial development adjacent to I-94 is a primary component. He opined all sides would have to take risks together to move the concept to reality. November 28,2012 EDA Meeting Page 2 "1 Schoenborn compared the project area to beachfront property substituting I-94 to commerciai and industrial development for beaches in residential development. He stated GTI is committed to making the project a legacy project, but that the City had to be ready to move forward. Skahen asked how to get sewer to the site. Strack opined the developers and the City needed to work together to resolve the issue. Schoenborn agreed and again noted opportunity for the City inherent in the development. Cameron stated the cost of sewer can't outprice the end-users interest. Strack offered to send annexation petitions to both Walz and GTI representatives. She opined that while she was not a decision-maker in the process that continued building of trust and an understanding the City could not likely afford to fund 100%of the project were items of importance to keep in mind. Frank noted he took a sabbatical and worked on a project involving the State Demographer and several professional economists. He stated that during that process a sense of vision was imperative. He stated he agreed with the vision of`Gateway' and was willing to move in that direction. He also stated the City would need to make difficult decisions. He noted the final budget meeting scheduled for early December and opined perhaps more discussion was needed. Skahen asked the Board to wrap up discussion as additional agenda items remained. Skahen clarified that consensus of all present was to start with a petition for annexation. GTI and Walz representatives and City Engineer Sabart exited the meeting. Approval of Minutes. Vice Chair Skahen introduced the minutes from the October 24, 2012 regular EDA meeting. Motion by Frank, Second Hosch to approve the October 24, 2012 minutes as presented. Motion carried 4-0. Accounts Payable and Monthly Report. Vice Chairperson Skahen introduced the agenda items and reviewed accounts payable for November 2012 in the amount of$2,738.91(MDG contract and mileage). Motion by Danielson, Seconded by Frank to approve the accounts payable as presented. Motion carried 4-0. Motion by Frank, Second by Danielson to approve the November financial reports as presented. Motion carried 4-0. TIF 1-4 Decertification Vice Chair Skahen introduced the agenda item. Strack referred to a memo in the packet from Finance Director Bartlett. The memo indicated TIF District 1-4 (VicWest)was set to expire at the c4ose of 2012. At this time TIF 1-4 can be decertified. Bartlett was seeking review and consideration by the EDA and, if warranted, consideration of a recommendation to the City Council to decertify the district. The district has a remaining balance of$826.17 which will be returned to Stearns County for redistribution to the County, School, and City. Strack noted the remainder of the fund balance, $45,000 was redistributed to local economic development projects as authorized by the Mn. Jobs Bill. Motion Danie/son, Second Hosch to recommend the City Council decertify TIF District 1-4. Motion passed 4:0. BFA—Kay's Kitchen. Vice Chairperson Skahen introduced the agenda and Strack distributed an invoice for the previously approved project mural. Strack noted the minutes from the previous meeting didn't include grant disbursement; therefore, authorization was being sought at this time. November 28,2012 EDA Meeting Page 3 5 Frank requested regulations for murals or at least minimum standards be studied. The Planning Commission would likely be the entity assigned such a task. Motion by Frank, Second Danielson to approve $1,000 disbursement from the BFA Grant Fund for the completed mural on the side of the building of Kay's Kitchen at 303 College Avenue North, Motion carried 4-0. Business Retention and Expansion Surveys. Vice Chairperson Skahen introduced the agenda item. Strack stated MDG had completed follow up with all businesses on the approved list; therefore, no cafling assignments were needed. In addition, she noted a name needed to be drawn to reward the $50 incentive donated by the Chamber of Commerce to a business that responded to the survey prior to October 29, 2012. Chiropractic Connection will receive the $50 incentive. Future Use of Property Adjacent to Highway Business District. Skahen introduced the agenda item. Strack noted that MDG has been working with a St. Joseph resident who owns a business with facilities currently located in Waite Park and Holdingford. Strack stated the business owner is interested in consolidating her facilities in one property in St. Joseph. MDG has been helping identify possible locations. The prospect is retail in nature but would include a studio in the longterm. The property owner is interested in purchasing the property at 103 Ash Street East. The property is currently zoned for residential use but is adjacent to the Highway Business District. In addition, the property directly north of the site is zoned residential but taxed as commercial at this time. Strack noted the EDA did not have jurisdiction or recommender authority over land use matters, however, the Applicant was looking for a show of support from the EDA. The zoning of the property at this time is an impediment to commercial development. Motion Frank, Second Danielson that the EDA regards the consideration of rezoning of the property at 103 Ash Street East as a positive move for a small business and an opportunify for preservation of an existing historical structure that allows the residential look of the structure to remain while maximizing the economic value of the existing property; however, the EDA defers to the Planning Commission and City Council for the rezoning decision. Motion carried 4-0. Downtown Master Plan. Skahen introduced the agenda item. Strack noted the time and the depth of discussion requested on this agenda item. She inquired as to whether or not the EDA wanted to address the issue at a workshop in December versus the Regular Meeting. Motion Danielson, Second Hosch to postpone discussion on the Downtown Master Plan to a /ater date when a workshop session could be e�tablished. Motion carried 4-0. MDG to coordinate workshop session in December. EDA Consulting Contract. Vice Chair Skahen reference a letter in the packet from Strack. Strack thanked the Board for their willingness to allow for flexibility over the previous several months due to illness within her immediate family. She indicated Foust would be unavailable to continue sharing office hours. To those ends Strack inquired as to whether or not the EDA Board would consider continued flexibility in scheduling office hours. Hosch inquired as to what type of flexibility was envisioned. Strack noted more time in MDG office versus on-site in St. Joseph. This could be accomplished by shorter scheduled days or alternating on/off site hours. No reduction in contract hours was sought. November 28, 2012 EDA Meeting Page 4 (D Danielson noted an opportunity to provide flexibility and save on mileage expense. Hosch stated anything that could be done off-site should be done off-site. Frank stated that the Council has a policy of bidding out contracts on a regular basis. He opined that in the future staffing expertise in economic development and planning was likely. Frank stated he would be willing to bring this question to the City Council as any expense of this nature required Council approval. Skahen and Hosch recommended granting flexibility. Motion Hosch, Second Danielson noting support for a contractual arrangement that offers maximum flexibility in scheduling while maintaining the same level of service hours. Motion carried 3-0 with Frank abstaining. Business Development Report. Strack referenced a business development report which was included in the packet. She noted McDonald's construction is rapidly advancing. Riff City Guitar opened in Northland Plaza on November 8tn this is Joe Leach's third business in St. Joseph. Project 12-A is refining financial modeling, Great River Energy is expected to participate in project. Location of City Offices Downtown. Skahen invited Frank to address the agenda item. Frank stated that the Council had made a decision that it is important to keep government offices in the downtown. In addition, the Council was committed to the development of a community center. Frank noted he supported purchase of the former Kennedy Elementary School until the price-point was determined to be non-feasible. He stated another suggestion was to purchase property near Boulder Ridge Apartments for a community center. He stated the local seemed to be favorable but there was concern about using commercial property in a prominent location for institutional purposes. Further concern about moving the government offices and the community center to the location and away from downtown was also addressed. Frank asked for comments from the EDA. Skahen inquired as to whether the government center could remain in the downtown with a community center developed in phases, perhaps beginning in connection with the government center. Frank noted the police department was in need of additional space and the Council Chambers needed updates. Frank indicated he preferred to keep the government center in the downtown. He asked what other EDA members preferred. Skahen supported keeping government offices in their current location. Hosch stated that if the Council was committed to a vibrant downtown, that the government offices needed to remain in the downtown. Strack noted the volume of walk-ins to the administrative and police offices on a daily basis and the number of persons brought into the area as a result. Consensus of EDA government offices should be retained in the downtown. Split of the offices and the community center may be a good option. Board Member Announcements. Skahen asked the EDA whether or not they would like to reschedule the December Regular EDA meeting to the 19'h versus the 26th. Motion Danielson, Second Hosch to move the regular meeting to December 19th, 2012. Motion carried 4-0. Adjournment. Motion by Hosch, Seconded by Frank to adjourn the EDA meeting at 7:01 pm. Motion carried 4-0. November 28,2012 EDA Meeting Page 5 /