HomeMy WebLinkAbout2012 Annual Report CITY OF ST. JOS�PH
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Date: January 16, 2013
Memo To: Members of the EDA
City Administrator Weyrens
Memo From: Cynthia Smith-Strack, MDG, Inc.
Administrator
.Tudy weyrens RE: 2012 Annual Report, Goals for 2013
Mayor
Rick Schultz 2012 Report:
Please find attached the initial draft 2012 EDA Annual Report to Council. As in years past,
Co�n�ilors the report includes:
Steve Frank
Bob Loso . Executive summary,
Renee Symanietz
u��l e w i�k . A break out of hours to each of the five core functions of typical EDA programs,
f;llA . Updates on projects,
lloug llanielson
ste�e Frank . Progress on previous year goals, and
Gary Gosberg
Larry Hosch . Potential goals for this year.
Dale Wick
To assist with establishment of 2013 goals, please find immediately following this memo a
copy of the 2013 approved CIP funding for the EDA.
Request:
Review, comment on 2012 annual report, setting of goals for 2013, and consideration of
authorizing report submittal to the City Council are kindly requested.
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2013 Capital Expenditures
General Fund Capital Improvement Plan-EDA
2013 final CIP Budget Adopted December 6,2012
As of December 31,2012
12/31/2012
Available through 12/31 through 12/31
Project Project Reserve Budget Transfers Spent 2013
Department Account Code Number Equipment Balance 2013 2013 2013 Balance
EDA 150-46500-582 EDA-1301 Computer Software 1,200.00 - - - 1,200.00
EDA 150-46500-588 EDA-1302 LeYs Go Downtown 9,095.00 10,000.00 19,095.00
EDA-1307 Business DevelopmenUTIF (5,435.45) 11,500.00 6,064.55
EDA-1306 Producer/Processor Institute - - -
2013 student
housing unit
EDA-1308 Business Demolition Program 3,341.57 6,0�0.00 9,341.57 Szsoo
_ EDA-1309 CDBG Grant Development - - -
�� EDA-1303 BFA Grant/Loan Program 5,416.48 6,000.00 11,416.48
EDA-1304 Rentai Conversions - - -
EDA-1305 CSAH 2/3 Collection Street (320.89) - (320.89)
12,701.54 33,500.00 - - 45,596J1
TOTAL EDA CIP 13,901.84 33,500.00 - - 46,796J1
ST. OSEPH EDA : ANNUAL
REPORT
St.Joseph EDA
City of St.Joseph
12/2012
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ST. JOSEPH EDA: ANNUAL REPORT ZO12
EXECUTIVE SUMMARY
The St. Joseph Economic Development Authority (EDA) continued to promote business interests within the
City in 2012. Challenges to economic expansion continue as a recovery from the Great Recession is
unusually slow. However, some significant progress in commercial building activity occurred in 2012. In
addition, the cultivation of new business expansion and development within the community indicated 2012 is
likely to continue successful efforts to diversify the tax base. The EDA/EDA Director have/are working with
two solid leads intending to add commercial value to the community in 2012.
This report documents the EDA's activities over the previous year and the EDA's progress toward the
creation of new wealth, `setting the table' for new business opportunities, providing assistance to businesses
to spur economic investment and job creation locally, and to conduct outreach to business contacts.
Following is a summary of EDA activities in 2012:
■ As City leaders are aware, the global economic downturn lead by declines in the construction sector
and resulting in decreased demand for new housing has proved to be difficult to overcome and a
painfully slow but increasingly stable recovery continues to proceed. That said warnings persist from
economists regarding fragile and fluid economic activity. Consumer spending has ups and downs in
2012 and is expected to potentially decrease as payroll taxes return to pre-stimulus levels in January
2013. In any case iYs prudent to expect overall economic performance will be continue to be
tentative and mild fluctuations in growth will continue to plague the area. The period of slow
economic expansion started in 2011 is expected to continue to impact the EDA's activity in
bringing/touting new investment in the community in the form of rooftops and population growth.
• 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 DevelopmenY the EDA met twelve 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 DevelopmenY' the EDA pursued a gateway program (I-
94/CSAH 2 corridor), a street/landscaping connections between the Wobegon Trail and Downtown,
the development of a Downtown Master Plan, and the extension of municipal utilities to the Parkway
Business Center, the Gateway Property, and the Walz Property.
■ Under the auspices of"Business DevelopmenY' the EDA(a) cultivated/followed up with twenty(20)
existing business leads and twelve new leads(thoroughly vetted), (b)the EDA/Director attended
ICity of St. Joseph � EDA Annual Report-2012 2
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ST. JOSEPH EDA: ANNUAL REPORT ZO 1 Z
meetings/distributed information to/and conducted research for 23 businesses, (c) provided technical
assistance to 15 business contacts, (d)developed and administered a business retention and
expansion survey, and (e) responded to: three inquires regarding tax abatement; three inquiries
related to tax increment financing; ten inquiries related to the BFA program; three inquiries related to
the Revolving Loan Fund; two inquiries for business planning assistance; two inquiries for SBA
assistance; two inquiries regarding the Minnesota Investment Fund; promoted three opportunities to
use the Demolition Grant Fund (funded two); and, four opportunities to use the Minnesota Business
Public Infrastructure grant program.
■ The past year(2012)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.
• Bello Cucina opened in the Millstream Shops/Lofts end-cap.
■ Cone Castle and McDonalds opened.
■ Minnesota Street Market received a $10,000 grant from the Initiative Foundation for market
expansion research and planning.
■ Projects confirming a decision to move ahead in 2012 include a biotech firm, expansion of the Army
Reserve facility, and work to ready a parcel in the downtown for revitalization.
■ The EDA/staff continued to market St. Joseph to commercial/industrial prospects. Literature
requested during the Business Retention and Expansion Survey was mailed to fifteen business
owners in December. The City changed web host providers and developed a new website.
Information from the EDA was generated/transferred although additional work is needed.
■ 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 $20,000 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 ineetings and projects, and retain inventory of parcels.
• Efforts at outreach to industrial establishments continues to be plagued by a severe shortage of
shovel ready industrial lots.
• Goals for 2012 include, but are not limited to(work items related to each goal are included in the
report detail):
1. Extension of sanitary sewer and drinking water to new CSAH 2 (infrastructure development
function).
2. Manage response to economic impact of the implementation of four-year residency
requirement at CSB/SJU (business development and market development function).
City of St.Joseph � EDA Annual Report-2012 3
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
3. Market St. Joseph opportunities within greater Minnesota and market available commercial
and industrial lots, land, lease space, buildings, etc. (market development function).
4. Implement capital improvement projects (organizational development, infrastructure
development, and business development function).
5. Respond to inquiries and continue proactive follow up of viable leads/prospects (business
development function).
6. Continue to pursue revitalization within the downtown (infrastructure and business
development function).
7. ImplemenUadminister technical and financial incentive programs (business development
function).
ICity of St.Joseph � EDA Annual Report-2012 4
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
2012 OFFICE APPOINTMENTS:
The following appointments to offices were made at the January 26, 2012 EDA meeting:
Chair: Dale Wick (Council Member, term expires with Council Term, unless re-
elected).
Vice Chair: Tom Skahen (At-large representative; term expires January 1, 2013).
Treasurer: Tom Skahen (At-large representative, term expires January 1, 2013).
Secretary: Carolyn Yaggie-Heinen (At-large representative, term expired January 1,
2012, served until another member appointed).
Member at Large: Steve Frank (Council Member, term expires with Council Term, unless re-
elected).
New Members: Larry Hosch (term expires 2018); Doug Danielson (term expires 2017).
Carolyn Yaggie-Heinen's term expired and Chad Davey resigned from the EDA in 2012. Larry Hosch was
appointed to the seat vacated by Yaggie-Heinen and Doug Danielson the seat vacated by Chad Davey. It is
noted EDA terms are either six years or commensurate with elected term per state law.
MissioN:
The St. Joseph EDA provides a professional municipal economic development program that assists
industrial and commercial development activities which minimize impacts to the environment, transportation
system, municipal water/sewer use, and financial resources for the City of St. Joseph.
CORE FUNCTIONS AND STRATEGIC DIRECTIONS — ST. JosEPH EDA:
The St. Joseph EDA, as a driving force for economic development, pursues the following core functions and
strategic directions:
• Organizational Development(26% of staff time 2012—in 2011 it was 16%)
• Infrastructure Development (one percent of staff time 2012 — January to December three percent
over the same period last year)
• Business Development(62% of staff time 2012—previous year 75%)
• Workforce Development (as was the case last year zero staff time 2012 — January to November —
this is a Mn. DEED function)
• Market Development (11% of staff time 2012 — compared to five percent over the same time period
in 2011).
Additional information regarding core functions of the St. Joseph EDA and the how those relate to activities
within 2012 follows.
I City of St.Joseph � EDA Annual Report-2012 5
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
FIGURE 1.1n
PERCENTAGE OF TIME SPENT ON CORE FUNCTIONS"2012
k�� ��+ ■Organizational
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■ Business Devl
� Infrastructure Devl
■ Market Devl
FIGURE 1.16
PERCENTAGE OF TIME SPENT ON CORE FUNCTIONS 2011
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s Infrastructure Devl
■Market Devl
Figures 1.1,a and 1.1 B illustrate a shift in focus over the past year. More time was spent on organizational
and market development in 2012. Consequently less time was spent on infrastructure and business
development in 2012. The increase in organizational development is evident of staffing adjustments due to
illness and a renewed emphasis on goal setting early in 2012. The increase in time spent on market
development is primarily due to a website conversion.
ICity of St.Joseph � EDA Annual Report-2012 6
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ST. JOSEPH EDA: ANNUAL REPORT ZO 1 Z
ORGANIZATIONAL DEVELOPMENT
FIGURE 1.2
EDA ORGANIZATIONAL STRUCTURE
CITIZENS '
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Mavo�ano Crrv Coutica �L Emr,aaK De��Eiovr.�[nT �.
---._�.�.. Aurnonm�
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, ; xo�d
:sdmm�stration P�aMing/LarW .. _.-......°. --T---+�_�°'�'�'
Fi+ance Publi:5afety �X Public Works �. �.....Operatiaf �
Orpmnt�onal �T�^�zs In`rar.ructure Market
DevewP�'+t Devaopment Dewbpmerrt
The St. Joseph EDA's activities in 2012 related to Organizational Development consumed twenty-six (26)
percent of allocated staff resources and included:
1. Monthly EDA meetings(12 total)
2. One special EDA meeting (joint session with Council, Planning Commission and Park Board)
3. Preparation of packets for EDA meetings
4. Preparation of EDA minutes
5. Updating of Official Minute Book
6. Attendance at City Council annual workshop
7. Preparation and presentation of the annual report to the City Council
8. Presentations to Chamber of Commerce
9. Goal setting and work plan administration/implementation
10. EDA budget development and administration.
ICity of St.Joseph � EDA Annual Report-2012 7
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12 monthly
meetings
EDA budget ���
development and �b�
administration
Goal setting 8 �RGANIZA�'lONAI
work plan EDA packet
administration ' !'DEVElOP�11lENT preparation
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Presentations to /lttendet�ceat City
Chamberof woAcshopand
Commerce meetings
Recordkeeping
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
INFRASTRUCTURE DEVELOPMENT
If the support infrastructure system needed to deliver and produce goods and services is not in place,
economic development is unlikely to occur. Under this core function the EDA strives to 'set the table' for
development.
Infrastructure needed to support economic development includes: availability of and available capacity within
basic facilities and services (i.e. wastewater, drinking water, roadways, stormwater, schools, gas, electric,
telephony, etc.) and available sites for development (platted, improved, shovel ready lots) in each business
area(downtown and highway commercial)and industrial area.
The St. Joseph EDA's activities in 2012 related to Infrastructure Development consumed one (1) percent of
allocated staff resources, down from three(3) percent in 2011. Infrastructure development projects included:
1. Gateway program (CSAH 2/I-94 and CSAH 75) elements, including participation in activities related
to business district land use standards, corridor planning (i.e. CSAH 2), development concepts (i.e.
Gateway Commons), signage and softscape at 75/College Avenue, and language relating to
transportation overlay corridors.
It is noted for the purposes of this discussion that gateways of the community are defined as major
roads leading into St. Joseph from other areas and entry ways into specific sections of the
community (e.g. downtown commercial versus highway commercial). The intent of the St. Joseph
EDA relating to gateways is to: (a) promote a positive and distinct image of the community and
encourage appropriate types of development which lend themselves to such an image; and, (b) to
enhance transportation functions of roadways; and to(c)foster community pride.
2. Implementation of downtown revitalization program elements, including:
a. Initiation of"Downtown Master Plan" process and resulting report.
b. Examination of failed Small Cities Development Program Grant Application with Mn. DEED
representatives and coordination of 2012 submittal with Central Minnesota Housing
Partnership.
c. Dialogue continued regarding parking in the Downtown.
d. Hosted joint meeting June 6, 2012 of Council, Planning Commission, Park Board, and EDA
regarding vision for powntown and efforts underway by all groups.
3. Creating "Shovel Ready" Sites for industrial use, highway commercial use, and downtown mixed
commercial/residential use. It is noted at this time there are only three available industrial properties
in the community, two of which are build to suit locations:
a. Continued to work with GTI Inc (Gateway Commons), Walz Development LLC, and
Millstream Development, in the development of property adjacent to new CSAH 2.
b. Work with East Central Regional Development Commission regarding establishment of
Federal EDA District. Three projects included in CEDS for 2013: extension of municipal
utilities to new CSAH 2, installation of new collector street segment from new CSAH 2 to
Walz Development Property, and installation of improvements at Parkway Business Center.
4. Updated Business FaCade Architectural (BFA) Program standards.
ICity of St.Joseph � EDA Annual Report-2012 9
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Updated BFA Hosted joint
standards meeting about
downtown vision
VHoAcwlih , Meetingswith :
ECRDC on I N F RASTR U CTU R E oEEOa�
�� D EVE LO P M E NT CMHPSCDP
grantapplic�ion
2012
Concept Planning S����
Gateway and �H��
Walz Property P����
APP
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ST. JOSEPH EDA: ANNUAL REPORT 2012
BUSINESS DEVELOPMENT
Business development efforts revolve around: business recruitment, entrepreneurial development, and
retention/expansion.
The St. Joseph EDA has an active business recruitment program including: the keeping of information on the
local business climate, active lead follow-up, inventories of available properties, business basics and start up
information, business incentive programs, available & current demographic information (i.e. population make-
up), general market data (housing, employment, business mix, market potential, etc.), and information on
current and planned projects. In 2012 the EDA and Chamber together undertook a substantial Business
Retention and Expansion survey program.
Efforts to encourage entrepreneurial development are enhanced by the creative class of people in/around
the College and University. Downtown revitalization efforts have been embraced by creative entrepreneurs
the results of which are becoming apparent in the built environment. A fundamental strategy moving forward
will be to work with local entrepreneurs with a demonstrated track record of success by supporting/nurturing
new projects. A second fundamental strategy will be to embrace and promote tolerance, diversity, and be
open to creative ideas.
The St. Joseph EDA Directors implement an on-going retention/expansion/attraction (BREA) program: (1) as
leads are initiated, received, followed-up on, and pursued; (2) as available properties/establishments are
identified (toured)and promoted; (3)and as technical and/or financial assistance is sought.
In 2012 business development efforts consumed 62% of allocated EDA hours, down from 75% in 2011. The
shift is indicative of time spent on the `downtown master plan' process and report. Time dedicated to
business development activities included:
1. Discussions, meetings, research, and information distribution for projects with 20 existing
business/property owners and/or contacts seeking project review, site plan review, technical
assistance, financial assistance, business management direction/assistance and similar items.
2. Discussions, meetings, research, and information distribution for projects with twelve (12) new
business/property owners seeking project review, site plan review, technical assistance, financial
assistance, business management direction/assistance and similar items; (please note not all
inquiries arise to the `new project status' as some are simply cold calls for information or
otherwise determined as non-viable.
3. Meetings with various property owners regarding an array of issues related to economic
development.
4. Promotion, administration, and implementation of technical and financial incentives for local
businesses including:
a. Tax abatement programs(three inquires in 2012)
b. Tax increment financing programs (three inquiries in 2012, one pending application -
incomplete)
c. Business Farade Architectural Grant program (10 inquiries in 2012, ten applications
approved with all projects completed or in progress)
d. Revolving loan fund (promoted to four projects in 2012)
e. EDA Demolition Grant Program (promoted to four project, one application received, one
project approved)
ICity of St.Joseph � EDA Annual Report-2012 11
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ST. JOSEPH EDA: ANNUAL REPORT ZO12
f. Mn. Department of Employment and Economic Development programs:
1) Business Development Infrastructure Grant Program (four inquiries relating to
Parkway Business Center, Millstream Business Park, GTI Property, and Walz
Development Property.
2) Minnesota Investment Fund (two potential applications).
g. SBA program parameters/contact information (two inquiries).
h. Technical information: business planning, business financing, business management, land
use planning, land use review.
FIGURE 1.5
ACTIVITIES: BUSINESS DEVELOPMENT
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City of St.Joseph � EDA Annual Report-2012 12
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ST. JOSEPH EDA: ANNUAL REPORT ZO 12
WORKFORCE DEVELOPMENT
Workforce development activities in Minnesota are generally coordinated by Workforce Development
Centers located throughout State and not at a municipal level. The 49 existing Workforce Development
Centers provide service to anyone transitioning from one job to another, from school to work and from
welfare to work situations. The Workforce Development Centers also provide service to those entering the
workforce for the first time. Services can be customi2ed to meet specific needs of each individual. Workforce
development centers have historically pursued bottom-up (i.e. working with educational institutions to provide
relevant education for employment opportunities expected in the future) and top-down (i.e. working with
businesses to educate their workforce and/or working with businesses to identify types of worker skills
needed) strategies in an effort to link available educational opportunities with business needs.
City of St.Joseph � EDA Annual Report-2012 13
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
MARKET DEVELOPMENT
There are two ways a community can bring new dollars in: attract new individuals and/or attract new
organizations (e.g. businesses, non-profits, educational organizations, government, etc). The St. Joseph
EDA has historically focused primarily on attracting new organizations; however, the EDA has continued to
support attracting new individuals to the community as well.
The 2012 market outreach efforts consumed eleven (11) percent of allocated EDA hours compared to five
percent over the same time period one year ago. Time dedicated to marketing activities included:
1. A key marketing tool utilized by the EDA is the City's website. In 2012 a new website host and
program were developed. Additional work to enhance available information regarding economic
development is needed in 2013.
2. Discussions regarding branding and a marketing strategy were held at several regular EDA meetings
in the Spring of 2012. The discussions led to hosting a joint meeting of the Council, Planning
Commission, Park Board, and EDA. The joint meeting led to progress on a Downtown Master
Planning process.
3. The EDA Director was the featured speaker at St. Joseph Chamber of Commerce meetings in March
and September.
4. The EDA Director was involved in the development of a sign at College/CSAH 75, an effort to
promote consistency in marketing design/logo.
5. The EDA Director regularly submits information for the City newsletter.
6. The EDA Director regularly does business in town so as to conduct market outreach and inquire as
to the state of business.
City of St. Joseph � EDA Annual Report-2012 14
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ST. JOSEPH EDA: ANNUAL REPORT ZO 12
FIGURE 1.6
ACTIVITIES: MARKET DEVELOPMENT
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� City of St.Joseph � EDA Annual Report-2012 15
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ST. JOSEPH EDA: ANNUAL REPORT ZO I Z
2012 MEETING DATES:
The St. Joseph Economic Development Authority met 13 times during the year 2012; twelve (12) regular
meetings and one special meeting were held. The meeting dates were as follows:
FIGURE 1.7
EDA MEETING DATES: 2012
January 25, 2012 July 25, 2012
February 22, 2012 August 22, 2012
March 28, 2012 September 26, 2012
April 25, 2012 October 24, 2012
May 23, 2012 November 28, 2012
June 6, 2012 (special) December 19, 2012
June 20, 2012
City of St. Joseph � EDA Annual Report-2012 16
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ST. JOSEPH EDA: ANNUAL REPORT ZO12
COMMERCIAL/INDUSTRIAL CONSTRUCTION & TAX BASE DATA:
The following table reflects historic building permit values for commercial and industrial (re)construction:
TABLE 1-1
CITY OF ST. JOSEPH
HISTORICAL COMMERCIAL&INDUSTRIAL CONSTRUCTION
____ -- .. _._ -_ --- .__
Year Value
2012� $3,601,549
2011 _ . $5,392,599
2010 ---� ____ $370,378
2009 $7,216,910
2008 $3,690,877
2007 $3,376,221
2006 � _ .. $1,259,957
2005 $2,790,117
2004 $2,708,838
2003 � $3,461,695
2002 $4,687,430
2001 $593,000
2000 $361,500
TOTAL �39,511,071
The following summary and chart illustrate the progress toward the EDA's goal of enhancing the commercial
industrial portion of the City's total value, thereby diversifying the tax base.When examining progress toward
this fundamental EDA goal, iYs important to understand how Minnesota's property tax system is arranged.
IYs also important to view the data in historical context.
Table 1-2 and Figures 1.8a and 1.8b show that over the previous five years the percentage of both the
market value and tax capacity value occupied by commercial/industrial property is increasing. The statistic is
especially encouraging in that the total value of the property within the corporate limits declined over the
same time period.
Over the previous year(from 2011 to 2012)the percentage of the City's market value related to commercial
and industrial property increased from 18.58°io to 20.46%. Likewise, the percentage of the City's tax capacity
value relating to commercial and industrial property increased from 29.12% to 31.46 percent. It is noted the
market and tax capacity composition statistics do not include the approximately forty-two(42) percent of
value attributed to non-property tax paying entities.
City of St.Joseph � EDA Annual Report-2012 17
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
TABLE 1-2
HISTORICAL VALUE COMPOSITION*
PAYABLE YEARS 2008-2012**
COMPOSITION CATEGORY YEAR YEAR
2012 2011 2010 2009 2008
Total Market Value $ 281,905,313 S 319,772,893 $ 329,203,827 $ 330,154.087 $ 327,386,247
Homestead Res�dential SS.SS`�o 62 56`� E3.E1`% 63 47`0 63 77`�
Market Vai�e Von Homestead Residential 16.48io 14.62`io 14.75�% 16.80% 16.91`c
Composition Farrn 3.14°% 3.19% 3.44°k 3.C2`% 2J8%
Commercial/industrial 20.46% 18.58% 17.14% 15.65% 15.51%
Oth2r 1 34`0 1 C�`o 1.C6°io :,CS% 1.C45o
Total Tax Capacity Value 5 3,380.793 $ 3,771,137 5 3,837,441 S 3.799.530 $ 3,762,117
Homestead Residential 48J3ro 52 96io 54.48% 55.07`ro 55.44`,0
Tax Capacity Von Homestead Residential 15.21�% 13.6�o i3 90`io 15.80`io 15.93`/0
COmpOSitiOn Farm 2.62`�0 2.71.`•0 2 95°./0 �63`./0 2.42`/0
Commercial/industrial 31.46°ic 29.124�0 27.09°.6 24.92% 24.71%
Other �.98%c 155`'/0 157`ti 1,58`.io 1.49`/0
"Source:League of Minnesota Cities Property Tax Calculation Reports
"NOTE:Market valuation two years post project complettion
FIGURE 1.8A
COMMERCIAUINDUSTRIAL CLASSIFICATION
MARKET VALUE TAXES PAYABLE 2008—2012*
' �65,000,000 -
560,000,000
$55,000,000
� �Market Value
$50,000,000
�
i
! $45,000,000
I
' $40,000,000 —�- T
2008 2009 201D 2011 2012
'Source:League of Minnesota Cities Property Tax Calculation Reports
"NOTE:Market valuation two years post project compleriion
FIGURE 1.86
COMMERCIAL/INDUSTRIAL CLASSIFICATION
( City of St.Joseph � EDA Annual Report-2012 18
ST. JOSEPH EDA: ANNUAL REPORT 2012
TAX CAPACITY VALUE TAXES PAYABLE 2008—2012*
I 51.15D.O�D i
, 51,100,0�� {--
�
� 51.050.OD0
i
� 51,a�0.0�0
595�,000
5400,0�0 �Tax Capacit�� +/alue
�550,000
5sao.000
; �;so.000
�
� ��oa.000
�� 2008 2009 ZO10 2011 2012
___ __- ---_ --
'Source:League of Minnesota Cilies Property Tax Calculation Reporis
"NOTE:Market valuation two years post project complettion
ICity of St.Joseph � EDA Annual Report-2012 19
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
LOCAL ECONOMIC INDICATORS:
An 'economic indicator' is a statistic which shows how the well the economy is doing and how it's expected to
do in the future. This section will examine local economic indicators; but should be viewed in light of the
following:
• Important economic indicators in the United States are updated on a monthly basis and continue to
show a slow rebound from the Great Recession of 2007-2009; the slow recovery is forecast to
continue. Writ large the U.S. economy continues to be impacted by potential automatic federal tax
increases and federal budget cuts commonly referred to as the `fiscal cliff'. The impact of the so
called cliff is probably most evident at a local level in the retirement accounts of residents.
Decreasing investment values and home value depreciation could combine to lower consumer
spending which could impact the retail sector locally.
• While there are several broad categories of economic indicators', local data is not available for most
of the categories.
• In an effort to gain perspective on whaYs happening in St. Joseph we will be examining two of the
broad categories of economic indicators wherein local data is available: (a)employment,
unemployment, and wage trends and (b) production and business activity in terms of new
construction, housing vacancies, and business sales/use data.
UNEMPLOYMENT, EMPLOYMENT &WAGES
Data relating to unemployment, employment, and wage trends follows. Table 1-4 is a comparison of
historical unemployment in metropolitan areas in Minnesota(excluding Duluth). Table 1-4 and Figure 1.9
show recently regional historic trends are diverging slightly with the St. Cloud Area unemployment rate
dropping a bit more swiftly than other areas. The difference is likely due to the pre-recession volume of
construction workers in the St. Cloud Area and the uptick in construction activity. Unemployment rates are
delayed economic indicators (confirm what has happened, in this case economy growing)and counter-
cyclical meaning that the lower the rate the better the economy and vice versa.
TABLE 1-4
MINNESOTA METROPOLITAN AREAS
HISTORICAL UNEMPLOYMENT DATA'�
MOST RECENT FIVE YEARS AVAILABLE 8�2012 YTD
St. Cloud Rochester MSP Mankato
Year/Month MSA MSA MSA MSA
2007 Annual Av . 4.7 4.0 4.3 3.8
2008 Annual Av . 5.6 4.5 5.1 4.3
2009 Annual Av . 8.2 6.7 7.9 6.6
2010 Annual Av . 7.4 6.1 7.2 6.1
2011 Annual Av . 6.5 5.4 6.4 5.3
2012 YTD Avg. 5.0 4.5 5.2 4.4
'Source:Mn. Department of Employment&Economic Development(LAUS);Not seasonally adjusted
� Economic indicators include: output, income, spending;employment,unemployment, wages; production;prices;
money,credit markets; federal finance; international statistics.
� City of St.Joseph � EDA Annual Report-2012 20
l%
�
ST. JOSEPH EDA: ANNUAL REPORT 2O 12
FIGURE 1.9
HISTORICAL UNEMPLOYMENT—MN MSA
MOST RECENT FIVE YEARS AVAILABLE &2012 YTD
, S.'_. --- — '
7.6
7.3 —
�
6.6 ----
i
I 6 3 -- �St. Cloud MSA
; S.8 -- �Rochester MSA
I �MSP MSA
i 5.3
i �Mankato MSA
i 4.S –
�
� 4.3 -- –
3.8 --, T------,— ---T—�
2007 2008 2009 2010 �011 �012YTD
Annual Annual Annual Annual Annual Avg.
i Avg. Avg. A.�g. Avg. Avg.
i
'Source:Mn. Department of Employment 8 Economic Development(LAUS);Not seasonally adjusted
Employment and wage data is available for the City of St. Joseph. The data in Table 1-5 reveals that despite
the Great Recession, a net total of 251 jobs have been added in St. Joseph over the past five years. Job
gains included both business expansion (558 positions)and newjob openings(346 positions); whereas job
losses included both those attributed to business contraction (483 positions)and businesses closing (170).
It's noted more jobs added from business expansion than businesses starting up and more jobs were lost
from decreases in business volume than the closing of businesses. Most recent data available for first and
second quarter 2012 is favorable revealing 1,798 employees, 125 business establishments, and an average
weekly wage of$666; all three are up from 2011. Employment data as an economic statistic moves in the
same direction as the economy(hiring = growing economy); employment data also moves at the same time
as the economy(versus lagging or leading). The data indicates a growing economy locally.
Wage data reflected in Figure 1.10 illustrates total weekly wages continue to recover after falling during the
period from 2007 to 2008. Average weekly wages in 2011 ($657) exceed that of the previous five year high
in 2007 ($654). The data correlate with the depth of the Great Recession in 2008 and the slow but consistent
recovery thereafter. The 2011 average weekly wage equates to an average annual income per employee of
$34,632. The average annual income based on average weekly wage is lower in St. Joseph than in the St.
Cloud MSA($36,712), Stearns County($37,492), and Minnesota($47,112).Wages are leading economic
indicators meaning they anticipate a business cycle by tending to turn down before the down cycle begins
and to turn up before the economy grows; another indication the economy locally is continuing to improve.
Figure 1.10 illustrates the average weekly wages in St. Joseph over the past five years have followed
national trends.
ICity of St.Joseph � EDA Annual Report-2012 21
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ST. JOSEPH EDA: ANNUAL REPORT ZO 12
TABLE 1-5
CITY OF ST.JOSEPH
HISTORICAL EMPLOYMENT&WAGE DATA*
MOST RECENT FIVE YEARS AVAILABLE
. . . . .
Year 2007 2008 2009 Z010 2U11
Employment i,924 �„578 �;577 1,7C3 1723
No.af Establisl�ments 133 130 127 127 122
Average Wkly Wage $ 654 $ 631 $ 644 $ 646 $ 657
Gross 1ob Gains 230 130 246 120 128
Job Gains Expansion 175 96 104 91 92
Job Gains Opening 55 34 192 29 36
Gross Jab Losses 158 138 124 123 110
Job Loss Contraction 108 105 97 81 92
Job Loss Closing 50 33 27 42 18
Total Annual lob Gain(Loss) 72 (Sj 172 �3j 18
*Source:Minnesota Department of Employment&Economic Development,Quarterty Census of Employment&Wages
FIGURE 1.10
HISTORICAL WAGES IN ST. JOSEPH
MOST RECENT FIVE YEARS AVAILABLE 8�2012 YTD
� $h50 � —
! So55
i �
i
;' �650
I :n45
� �h�o Average l�tlkly'v`:'age
i
', 5535
� $630
I
� <525 '
------—------
, _ , �---.
20Qr 200� 2t�0U 201!� 2011
__ _ - --_. _
NEW CONSTRUCTION, HOUSING VACANCIES, AND BUSINESS SALES
The following section relates to construction of new homes, housing vacancies, and business sales/use data.
Housing vacancy data is only available on an annual basis at a state level. The remaining data is specific to
the City of St. Joseph. These statistics cover how much businesses are producing and the level of new
ICity of St.Joseph � EDA Annual Report-2012 22
:J /
ST. JOSEPH EDA: ANNUAL REPORT 2O 12
construction in the economy. In a broad sense, it is important to recall the economy is ubiquitous and
interrelated and no confined by geographic boundaries.
New home construction in St. Joseph peaked in 2005 and has decreased significantly thereafter. The rapid
decrease is of course indicative of the Great Recession and housing decline. As illustrated in Table 1-6, the
average value of each new home construction per year varies from a high of$187,070 in 2008 to a low of
$147,162 in 2009.
TABLE 1-6
CITY OF ST.JOSEPH
HISTORICAL NEW HOME STARTS: 2006—2012
No. Home Avg
Year Starts Total Value $/Home
2006 77 $ 11,424,967 $ 148,376
2007 24 $ 4,101,141 $ 170,881
2008 7 $ 1,309,487 $ 187,070
2009 12 $ 1,765,939 $ 147,162
2010 5 $ 810,993 $ 162,199
2011 13 $ 2,000,411 $ 153,878
2012 8 $ 1,436,961 $ 179,620
"Source:City of St.Joseph
Housing vacancy rates are not officially calculated on a local basis, except in conjunction with decennial
Census. Because housing vacancies correlate with how much businesses are producing and the level of
new construction in the economy, they are noteworthy for trend analysis. Figure 1.11 compares vacancy
rates in Minnesota to the national trend. Higher vacancy rates typically correspond to a decrease in
economic activity.
F�GURE 1.11
HOUSING VACANCY RATES (PERCENTAGE�
Source:U.S.Census—American Community Survey Oata
�16.0
15.0 -�---
, 14.0 I
j 13.0 , United States
i 12.0 -�---- Minnesota
�
� 11 A '-
i 10.0 i_------ ---,---- , -----,
i ;
�oo`'�oo��oo� �oo��oo��otio�otiti ,
Table 1.7 and Figure 1.12 below represent sales and use data for the City of St. Joseph over the previous
five years for which data is available. The sales data illustrates the fult impact of the opening of Coborns
I City of St.Joseph � EDA Annual Report-2012 23
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<�'c
ST. JOSEPH EDA: ANNUAL REPORT 2O 12
grocery store. The data table also illustrates the decrease in consumer spending, lead by the construction
sector in 2007.
TABLE 1-7
CITY OF ST..IOSEPH
HISTORICAL SALES/USE DATA*
MOST RECENT FIVE YEARS AVAILABLE
Year Gross Sales Taxable Sales
2006 $ 82,422,411 $ 22,857,719
2007 $ 76,417,314 $ 24,337,508
2008 $ 92,253,956 $ 23,092,462
2009 $ 99,294,079 $ 19,335,904
2010 $ 100,671,526 $ 22,525,414
'Source:Minnesota Department of Revenue,Tax Research Division
FIGURE 1.12
HISTORICAL GROSS SALES VOLUME
MOST RECENT YEARS AVAILABLE*
r
i $100,000,000 ;
;
i $95,000,000 �
;
i $90,000,000 �-
� $85,000,000
� i Gross Sales
$80,000,000 =.-
$75,000,000 �
$70,000,000 -+-- r—- -----,
�n io r� oo rn o i
0 0 0 0 0 � �
0 0 0 0 0 0
N N N N N N i
'Source:Minnesota Department of Revenue,Tax Research Division
POPULATION AND HOUSEHOLD ESTIMATES
Table 1-8 illustrates population and household growth within the City of St. Joseph over the previous five
years. The data from 2006-2009 & 2011 is based on the American Community Survey whereas data for
2010 is indicative of the decennial Census. The community continues to grow in terms of population and
households despite the slowdown in the housing sector. The 2010 statistical data is an actual enumeration
from Census forms versus a survey overview. As a result the 2010 data is a better reflection of actual
population and households.
ICity of St.Joseph � EDA Annual Report-2012 24
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
Attracting residents and businesses is one means of increasing a community's wealth and, thereby,
enhancing the local economy. Under this definition of enhancing wealth, the City of St. Joseph continues to
be a growing economy.
TABLE 1-8
CITY OF ST. JOSEPH
HISTORICAL POPULATION 8e HOUSEHOLD ESTIMATES*
Year 2007 2008 2009 2010 2011
Population 6,066 6,156 6,174 6,534 6,579
Housing 1,743 1,768 1,794 1,912 1,857
'Source: US Census Bureau American Community Survey(2006-2009,2011);Census,2010
ICity of St.Joseph � EDA Annual Report-2012 25
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
2012 PROSPECTS/TECHNICAL ASSISTANCE/COORDINATION
This section of the EDA Annual Report represents qualified business prospects assisted over the previous
year. The EDA members and their staff/consultants continued to work with a number of commercial and
industrial businesses during 2012. A total of 13 new substantial business contacts were made during 2012
and follow-up occurred with 27 contacts from previous years. A total of 54 percent of new contacts in 2012
were commercial/service businesses with the remaining being industrial (31%) and/or institutional (15%) in
nature. A total of 91 percent of new 2010 prospects were commercial/service businesses, the same as new
leads in 2009. In 2008 75% of new leads were commercial with the remaining 25% industrial. In 2007 60% of
new leads were commercial while 40% were industrial. In 2006 44% of new leads were commercial and 56%
industrial, the percentage distribution was the same for 2005 leads (44% commercial and 56% industrial). In
2004, 60% of new contacts were commercialiservice establishments and 40°/a industrial; during 2003 43% of
the new contacts were commercial/service businesses while 57% were industrial or manufacturing
businesses. The change in business prospect categories likely reflects the limited availability of industrial lots
and the struggling economy.
Following is a summary of the various contact activities within 2012. Businesses have been identified with a
project number to protect the confidentiality of the company, which is sometimes a concern while they
explore construction/expansion opportunities.
Proiect 01-F:
This lead involves the development of a fast food restaurant(free-standing) in the City. The fast food
establishment opened in December, 2012.
Proiect 02-L:
This project resulted in the construction of a new business facility in 2003. The facility was oversized so as to
accommodate future expansion. In the interim the space is leased to other industrial occupants. The most
recent discussion with this contact surrounded the purchase of commercial restaurant equipment.
Proiect 03-A:
This group of Developers is contemplating a large highway commercial development in an area not yet
annexed into the City. MDG continues to maintain active correspondence with this prospect. These contacts
worked with Project 07-J to develop a joint concept plan. The EDA participated modestly in the development
of the concept plan which is featured on the City website. The contacts met with the EDA in November
regarding extension of improvements to the subject area. The Council is still reviewing a time to meet to
discuss the potential to move improvements to the forefront.
Proiect 04-H:
See Project 10-A update.
Proiect 04-N:
This business is currently a home occupation in an adjacent area. The business owner purchased a lot within
Buettner Business Park with the intent of developing in the future. The subject property is now for sale and
was the subject of discussion with a builder late in 2012.
Proiect 04-S:
This project involves a large phased development the majority of which reverted to bank ownership and back
to the original land owners. A preliminary plat was approved in 2008 for a portion of the property, the final
plat was approved but not recorded as a development agreement was not finalized. The property is now
banked owned. In 2012 EDA staff met on occasion with the bank's representative and the banks broker. In
addition, talks regarding finalizing plat and follow-up meetings with two potentially interested parties were the
subject meetings in the beginning of 2012.
Prolect 05-A:
ICity of St.Joseph � EDA Annual Report-2012 26
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
This project involves a former feed mill. The EDA's MDG continues to market the site on the City's website,
the MnPRO site, the SCAEDP site, and with local commercial realtors. MDG attempted to contact the owner
on several occasions in 2012 in an attempt to facilitate discussion with Project 12-H.
Proiect 05-I:
This project resulted in the largest private development investment in the Downtown in history of the City. In
2012 Bello Cucina opened in the end-cap of this structure.
Proiect 06-H:
This project involves the development of commercial/residential property adjacent to CSAH 75 and
Millstream Park. Strack remains in active contact with this representative, especially since new CSAH 2 has
been built.
Proiect 06-I:
This project involves the marketing of a 30-acre parcel adjacent to 20�h Avenue. A portion of the property was
sold to the federal government for a military reserve base, site plans are pending, construction to occur in
2013.
Proiect 07-J:
This project has resulted from active outreach to owners of potential commercial/industrial property adjacent
to I-94. MDG continues to maintain active correspondence with this prospect. These contacts worked with
Project 03-A representatives to develop a concept plan for a portion of this property. The contacts met with
the EDA in November regarding extension of improvements to the subject area. The Council is still reviewing
a time to meet to discuss the potential to move improvements to the forefront.
Proiect 08-A:
This project involves a targeted residential development in close proximity to the downtown. The Developer
moved forward with construction plans in 2012. The EDA assisted with a BFA grant.
Prolect 08-C:
This local business owner contacted the City after learning of the BFA grant opportunity. Strack continues to
discuss a potential downtown project with the business owner. The Project Contact is very interested in the
potential demolition grant program and has met with Strack on several occasions most recently in October of
2012.
Proiect 08-F:
This project involves the expansion of a successful business located in the industrial park which started out
as a home occupation. Strack remains in occasional contact with this project contact, including delivery of
technical information on a couple of occasions in 2012. Expansion occurred in 2012.
Proiect 09-C:
This project initially involved the subdivision of a four acre parcel at CSAH 75/CR 133 and the establishment
of a professional plat in conjunction with the relocation of an existing clinic in St. Joseph. The project
received preliminary plat approval but the Developers were unable to secure project financing. The EDA and
staff have worked with the parcel owner and a development representative throughout 2011 to finalize the
plat and ready a site for a fast food restaurant. The plat was finalized in 2012.
Proiect 09-I:
This project relates to discussion with a bank that now owns several acres of land under Project 04-S.
Requested information has been forwarded to the project contact. The Project Contact and Strack remain in
touch on an occasional basis.
Proiect 10-A:
This project involves Minnesota Street Market. In 2012 the EDA supported a grant application by the St.
Joseph Food Cooperative to the Initiative Foundation. A $10,000 grant was awarded in the fall and is to be
used to conduct market expansion planning.
City of St.Joseph � EDA Annual Report-2012 27
���..
ST. JOSEPH EDA: ANNUAL REPORT 2012
Proiect 10-D:
The project relates to parking within the Central Business District. In the past several concepts were
developed and meetings with individual business owners were facilitated. The project remains on the 'radar'
for downtown but not on the `front burner' due to lack of response. Discussion of this topic is tangentially
related to a Downtown Master Study and discussion regarding the siting of a community center.
Proiect 10-E:
This project involves beautification efforts visible from the public right of way by an existing business that has
used the EDA BFA grant for a previous project. The business owner moved ahead with another project in
2012 assisted in part by the BFA program.
Proiect 10-I:
This project involves the marketing of property adjacent to CSAH 75 and CR 133. Strack met on two
occasions with the property owner.
Proiect 11-C
This project involves the demolition of a residential dwelling and the creation of a new restaurant. The EDA
assisted the project with asbestos abatement and a BFA grant. The project opened in 2012.
Proiect 11-J
This project involves the construction of new student residential units, a welcome center, and athletic
facilities by the College of St. Benedict. The multi-million dollar project brought numerous construction jobs to
the City in 2012.
Proiect 11-K
This is a confidential project by request of the project representative. No information is on file regarding.
Proiect 11-L
This project involves the sale of two industrial buildings in St. Joseph. The EDA Director has toured both
facilities and met on several occasions with property owners. The properties are listed on the City's website
and the MnPro site. The properties were suggested for occupancy by a non-profit but ultimately failed to
meet the specifications of the requesting agency.
Proiect 11-M
This project involves the presence of a financial entity within the City of St. Joseph. The project is tentatively
forecast for 2015.
Proiect 12-A
This project came from the State of Minnesota Office of Employment and Economic Development. Site
information was requested for areas in a `campus' type setting. The DBL/MCO properties were promoted in
the response package submitted to DEED. The lead ultimately located in another state.
Prolect 12-B
This project involves the lease of a facility by a local business. Several meetings were held with the project
contact and information regarding alternate locations, incentives available, and contact with the Lessor
resulted.
Proiect 12-C
This project involved the siting of an assisted living facility in the City of St. Joseph. The lead ultimately
stepped down after the Villages by Collegeville Communities moved forward.
Proiect 12-D
This project involve a Canadian company looking for industrial acreage in Central Minnesota. The lead
ultimately located in Sauk Rapids.
ICity of St.Joseph � EDA Annual Report-2012 28
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ST. JOSEPH EDA: ANNUAL REPORT 2012
Prolect 12-E
This project involves the location of a biotech business in the Buettner Business Park. Copious meetings,
contacts, and exchanges of information have occurred with this contact
Proiect 12-F
This project resulted in the creation of a new business in the Indian Hills complex previously developed by
DM Builders. It is the business owner's third establishment in St. Joseph.
Proiect 12-G
This project involved the search for restaurarit facilities for a spice shop/deli. MDG worked with the project
contacts to identify locations and equipment that could be fitting for the entrepreneurs. The business
eventually opened in Kimball, Mn.
Proiect 12-H
This project involved the search for a very small amount of lease storage space (200 square feet) for a local
home based business owner. See Project 05-A.
Proiect 12-I
This project involves the consolidation of two business locations to the home town of the business owner.
The EDA endorsed a conceptual location for this business at their November meeting.
Proiect 12-J
This project surrounded a potential redevelopment. The project idea has been rescinded.
Prolect 12-K
This project invoives the potential relocation of a local, regularly scheduled event from an area church to the
downtown. Discussion is on-going.
Proiect 12-L
This project involved a complaint by a local home based business owner relating to the Millstream Arts
Festival. The complaint was amicably resolved as of January 9, 2013.
City of St.Joseph � EDA Annual Report-2012 29
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
PROGRESS REPORT - GOALS FOR 2012:
Following were EDA goals for 2012 with updates on progress toward goals and plans for 2012.
1. EXTENSION OF SANITARY SEWER AND DRINKING WATER TO NEW CSAH 2
(INFRASTRUCTURE DEVELOPMENT FUNCTION).
� PROJECT HISTORY: This item has been discussed at the City
� Council level since February 2009. The goal involves improvements
to the Walz/GTI property adjacent to I-94 and new CSAH 2.
OIn 2012 a trail was installed in the corridor adjacent to the new
roadway in conjunction with construction of the route.
The concept of proactive utility extension in conjunction with the
� installation of new CSAH 2 has long been considered and included
�,�` � in land use and financial planning documents. In addition, it is
strongly recommended that improvements are timed to coincide with
property development.
PROGRESS REPORT: In 2011 and 2012, utility extension in
conjunction with the installation of new CSAH 2 was included in a
grant request submitted to the East Central Development
Commission, the entity contracted to pursue the establishment of a
Comprehensive Economic Development Strategy (CEDS) and the
establishment of a federal EDA district in the quad-county area. At
this time the CEDS has not yet been implemented as a federal EDA
district has not been approved.
The new transportation route was constructed in 2012 along with a
regional trail segment. While discussion continues (including most
recently at the November EDA meeting) installation of improvements
continues to seem a future project. The City Council is attempting to
schedule a special workshop to consider alternatives for utility routes.
The alternatives would be forwarded to the property owners who
have indicated a desire to petition for annexation.
POTENTIAL WORK ITEMS 2013:
Work with the City Council to determine the �nal route for
utility extension to the subject property. Develop an
infrastructure funding package (assessments, grants, TIF,
abatement, etc).
� l
I City of St.Joseph � EDA Annual Report-2012 30
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ST. JOSEPH EDA: ANNUAL REPORT ZO 12
2. MANAGE RESPONSE TO ECONOMIC IMPACT OF THE IMPLEMENTATION OF
FOUR-YEAR RESIDENCY REQUIREMENT AT CSB/SJU (BUSINESS
DEVELOPMENT AND MARKET DEVELOPMENT FUNCTION).
� PROJECT HISTORY: In 2009 the City Council directed the EDA to
� examine the potential economic impacts of a four-year residency
requirement at CSB/SJU and function as information resource
O regarding economic impact of four-year residency. A rental housing
working group was formed to provide factual information and advice to
� the EDA and in turn the City Council.
V� Ultimately the working group recommend the public sector be involved
� in the transitioning of student rental units because: the capitalized loss
� of rental income will far exceed rent collected and will directly impact
(reduce) the value of rental property; property and taxable market
� � value will be impacted by reduction of rental demand; large facilities
designed for student rental (e.g. St. Joseph Student Housing) are
�� experiencing a reduction in unit rental; reduced rental demand has
« resulted in difficulty obtaining financing and/or refinancing of rental
�f property; and, there is a potential for rental property that is not cash
flowing to enter foreclosure, cease property tax payment, and/or fall
into disrepair.
PROGRESS REPORT: At the suggestion of the rental housing work
group and EDA the City Council authorized submittal of a grant
application to the Mn. Department of Employment and Economic
Development for Community Development Block Grant funding
through the Small Cities Development Program. The 2012 application
was completed with assistance from the Stearns County HRA. The
grant application however, was not funded by DEED in 2012. At the
suggestion of the EDA and the City Council authorized re-submittal of
the application in 2013. The Application is being completed by the
Central Minnesota Housing Partnership.
. f "`� �
POTENTIAL WORK ITEMS 2013:
Work with the Central Minnesota Housing Partnership on the
fina/ application to the SCDP grant. Assist as needed in
program deve/opment and administrafion.
Decide once and for all whether or not to create architectural
illustrations/renderings of infill potential adjacent to Minnesota
, � Street and College Avenue for parcels currently used for
student renfal purposes (downtown master plan).
� City of St.Joseph � EDA Annual Report-2012 31
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ST. JOSEPH EDA: ANNUAL REPORT 2O 12
3. MARKET ST. JOSEPH OPPORTUNITIES WITHIN GREATER MINNESOTA AND
MARKET AVAILABLE COMMERCIAL AND INDUSTRIAL LOTS, LAND, LEASE
SPACE, BUILDINGS, ETC. (MARKET DEVELOPMENT FUNCTION).
�
�
O PROJECT HISTORY: The EDA has a core interest in marketing
� busiriess opportunities and available business property within the
City of St. Joseph to areas external to the City.
�
�
.�, �
�'.
PROGRESS REPORT: A new website host and website debuted in
fall of 2012. Some information has been transferred from the
previous site to the new site, however, additional work is needed.
� ;
' `'��f i
,;
POTENTIAL WORK ITEMS 2013:
Updating property listings at the City and MnPro websifes.
, , Develop links on City websife to local business websites.
Present information to the Chamber and other groups as
requested.
ICity of St.Joseph � EDA Annual Report-2012 32
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ST. JOSEPH EDA: ANNUAL REPORT ZO 12
4. IMPLEMENT CAPITAL IMPROVEMENT PROJECTS (ORGANIZATIONAL
DEVELOPOMENT, INFRASTRUCTURE DEVELOPMENT, AND BUSINESS
DEVELOPMENT FUNCTION).
� PROJECT HISTORY: The EDA is required to follow the City's established
� process for budgeting and auditing. When preparing/recommending an
annual budget, the EDA also recommends adjustments to the Capital
OImprovement Plan.
��; � In 2012 capital projects included the Business Fa�ade Architectural Grant
Program (six projects funded), the demolition grant program (two projects
.� � funded)and participation in creating shovel ready sites (development).
� �
� �
�
PROGRESS REPORT: The CIP projects are administered on an as
needed basis by the EDA. The EDA participated in a project to place
hanging planters in the downtown in 2012.
_.,�
z../ �, ��r ;�:r.t,�.:�`-�.. ._l
, POTENTIAL WORK ITEMS 2013:
Administer BFA program.
Adminisrer demolifion grant program.
� ` Master plan for downtown, create if supporf from property owners.
ICity of St.Joseph � EDA Annual Report-2012 33
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ST. JOSEPH EDA: ANNUAL REPORT 2012
5. RESPOND TO INQUIRIES AND CONTINUE PROACTIVE FOLLOW UP OF VIABLE
LEADS/PROSPECTS (BUSINESS DEVELOPMENT FUNCTION).
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O� PROJECT HISTORY: This is a core function of the EDA and shall
continue to be in 2013.
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PROGRESS REPORT: In 2012 thirteen (13) new leads (vetted,
substantial) were cultivated. In addition twenty-seven (27) leads from
previous years were cultivated, including the blossoming of a project that
has been cultivated since 2001.
Most of the leads cultivated in 2012 are commercial retail and/or service
in nature, however, one involves an industrial-type uses. The split is
similar to those occurring over the previous two years since the economic
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downturn.
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POTENTIAL WORK ITEMS 2013:
Continue proactive response on an as-needed basis.
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� City of St.Joseph � EDA Annual Report-2012 34
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ST. JOSEPH EDA: ANNUAL REPORT ZO 1 Z
6. CONTINUE TO PURSUE REVITALIZATION WITHIN THE DOWNTOWN
(INFRASTRUCTURE AND BUSINESS DEVELOPMENT FUNCTION).
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� PROJECT HISTORY: This is a core function of the EDA since 2003 and
O shall continue to be in 2013. Revitalization activities included the creation
of downtown faCade design guidelines, examination of parking capacity,
� the expansion of The Local Blend, updating of former Losos store and
� opening of the Minnesota Street Market, the construction of Millstream
Shops/Lofts, the issuance of several BFA grants, and the creation of
� illustrations of storefronts to represent desired design guidelines.
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PROGRESS REPORT: In 2012 the EDA assisted in securing a tenant for
the endcap at Millstream Shops/Lofts, issued several BFA grants, and
held lengthy discussions regarding master planning for the downtown.
The EDA also assisted with the opening of a new walk up restaurant in
the downtown along with development of residential units called the
Villages and developed by Collegeville Communities.
CSB built phase one of a planned expansion east of CR 121 (student
housing and support facilities) in 2012.
POTENTIAL WORK ITEMS 2013:
Promote and administer incentive programs.
Assist a downtown property owner with demolition of portion of site
including asbestos abatement.
Assist projects with approved BFA grants in realizing projects.
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� City of St.Joseph � EDA Annual Report-2012 35
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ST. JOSEPH EDA: ANNUAL REPORT ZO 1 Z
7. IMPLEMENT/ADMINISTER TECHNICAL AND FINANCIAL INCENTIVE PROGRAMS (BUSINESS
DEVELOPMENT FUNCTION).
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OPROJECT HISTORY: This is a core function of the EDA and shall
� continue to be in 2013.
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PROGRESS REPORT: In 2012 the EDA/EDA Director offered and
administered the following incentives/advisory services: tax increment
financing, tax abatement, industrial revenue bonds, small business
development loan program (DEED), Minnesota Investment Fund, St.
Joseph Revolving Loan Fund, St. Joseph Business FaCade Architectural
Grant Program, Small Business Association Loan/Grant programs,
financial/technical assistance available through the Minnesota Business
Finance Corporation, USDA Loan Guarantees, incentives from energy
providers, incentives for disadvantaged persons, technical assistance
(licensing, land use, and subdivision information), job training assistance,
and advisory services (SCORE, Online Women's Business Center,
- ..�' Minnesota Technology, SBA Online Courses, entrepreneurial resources,
, �' ' and Mn. Small Business Development Center Business Counseling).
POTENTIAL WORK ITEMS 2013:
Promote and administer incentive programs.
Promote and administer technical advice services/programs.
1 Identify additional resources/technical information sources.
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ICity of St.Joseph � EDA Annual Report-2012 36
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ST. JOSEPH EDA: ANNUAL REPORT ZO 1 Z
8. DOES THE EDA HAVE OTHER GOALS FOR 2013?
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� PROJECT HISTORY:
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PROGRESS REPORT:
POTENTIAL WORK ITEMS 2012:
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L City of St.Joseph � EDA Annual Report-2012 37
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