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HomeMy WebLinkAbout[05] Minutes CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday May 22, 2013 Present: Board Members Steve Frank, Larry Hosch and Dale Wick. Absent: Board Members Gary Osberg and Doug Danielson. . Also present resident Michael McDonald, St. Joseph Action Group's Margy Hughes, Mayor Rick Schultz, Jason Krebsbach from the Central Mn. Housing Partnership, St. Joseph resident Cory Ehlert, City Administrator Judy Weyrens, and EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the May 22, 2013 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Frank second by Wick to approve the agenda with the deletion of item (3) as the guest was unable to attend. Motion carried 3-0. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the April 24, 2013 regular EDA meeting. Motion by Hosch, Second Frank to approve the April 24, 2013 minutes as presented. Motion carried 2-0 with Wick abstaining as he was absent from the April 241h meeting.. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable from May 2013 in the amount of $2,728.28 (MDG contract and mileage) and the check register. Wick also alluded to the financial reports included in the packet. Motion by Frank, Seconded by Wick to approve the accounts payable and financial reports as presented. Motion carried 3-0. Request for Funding: St. Joseph Action Group. Chairperson Wick introduced the agenda item and introduced Margy Hughes from the St. Joseph Action Group. Hughes requested assistance from the EDA in the amount of $1,500 toward the purchase of brackets for hanging baskets and a trailer for caretaking of the hanging baskets. She noted the EDA supported the endeavor last year and that the baskets were very well received. Frank noted he was supportive of the proposed public, private, and non-profit venture. Hosch opined the trailer seemed more suitable for funding through the City/public works budget. He was supportive of EDA funds from "Let's Go Downtown" being used for the purchase of brackets. Strack requested clarification of the amount of funding being sought as the written request was in the amount of$1,350 but the verbal request$1,500. Hughes clarified the request was for$1,350. Motion by Frank, second by Hosch to approve participation in the amount of$1,350 for the purchase of brackets for hanging baskets in the downtown. Motion carried 3-0. Discussion: Housing Rehabilitation Loan Program May 22, 2013 EDA Meeting Page 1 3 Chairperson Wick introduced the agenda item. Strack noted Jason Krebsbach from the Central Minnesota Housing Partnership (CMHP) and Cory Ehlert, local resident were present. She stated Ehlert had requested the EDA consider participating in an attempt to access loan funds for an owner occupied residential rehabilitation program. Strack noted requests for proposals were being accepted for access to the Community Homeownership Impact fund through Minnesota Housing Finance Agency(MHFA). She stated the CMHP would apply on the City's behalf for funding that could be used to provide interim financing, deferred loans, or grants to qualifying projects that result in home ownership by a family with an income of 80% or less of the area median. Wick inquired as to what was the difference between this program and the Small Cities Development Grant the CMHP applied for on behalf of the City. Strack noted two different funding sources were involved. One was sourced through the federal community development block grant program, the other through MFHA. Krebsbach confirmed the Community Homeownership Impact Fund was a state funded program. Wick inquired as to why Ehlert and Krebsbach were seeking a contribution from the EDA versus the City Council. Ehlert indicated they would be addressing the Council as well but were primarily seeking broad community participation. Frank inquired as to how long the program has been in existence and how it has impacted other communities similar in size to St. Joseph. Krebsbach stated the Impact Fund has been in existence for several years. He further noted that a request for proposals from St. Joseph would define a program unique to the City of St. Joseph. Krebsbach noted the CMHP has used the Impact Fund in the past but not in a capacity as proposed here in St. Joseph. He noted the concept of purchasing student rentals, improving them, and selling to income qualified individuals was a bit unique. Frank inquired as to whether or not the conceptual program would apply to foreclosed, vacant, or distressed homes. Krebsbach indicated the program could be designed to cover all of those types of homes. Ehlert stated the proposed program design would be looked upon favorably by the MHFA, especially if the City supported the program with a contribution. Frank stated the City's contribution was one component, he then inquired as to what other entities would likely participate. Ehlert stated the St. Cloud Association of Realtors is willing to commit financially to the program, perhaps in the form of reduced commission percentages. Elhert hypothesized lenders could potentially assist by reducing loan origination fees. Elhert noted the competitive loan program had a limited pool of funds and, therefore, local participation was important. Hosch inquired as to how the applications were reviewed, whether or not a point system was in place. Krebsbach indicated the applications were not reviewed on a point basis. Hosch opined local educational institutions should be asked to participate as well. Wick inquired as to how the program would work. Krebsbach stated the CMHP would apply for construction financing supplied by a loan from the Impact Fund. The CMHP would then acquire and update a single family dwelling. The CMHP may also supply down payment assistance to a qualified mortgagee. The CMHP construction loan would be repaid when the property was purchased by a qualified mortgagee. Wick asked about the quantity of time City staff would be asked to contribute to the project. Krebsbach stated that the City's only role could potentially be marketing the program. Wick requested clarification that the program would be used to transition single family student rental structures to owner occupied single family dwellings. Krebsbach confirmed that would be the case. May 22, 2013 EDA Meeting Page 2 Wick inquired as to whether or not the City could use contributions to previous efforts as 'local participation'. Krebsbach indicated that was not possible. Frank asked what dollar amount was being sought. Wick asked was were potential sources. Strack noted the $15,000 in the EDA financial reports to be used on housing programs would be available if the SCDP application was not funded. Frank suggested the EDA consider being supportive of the program but not commit themselves to a specific dollar amount. Ehlert stated he would address Chamber of Commerce and City Council regarding participation as well. Krebsbach noted the deadline for submittal of proposals to the Impact Fund was in mid-July. He noted the federal budget including community block grant funding and the Small Cities Development Program may or may not be in place at that time. Wick supported Frank's previous suggestion. Ehlert stated that the fair market value for the student rental would be determined by the CMHP not the City of St. Joseph. He also noted for the record he would not be selling a dwelling unit he currently owns to the CMHP. He stated he may represent the CMHP as a seller or a qualifying person looking to purchase a home through the program. Motion by Frank, Second by Wick that the EDA supports the formation of an application to the Impact Fund based on purchase of existing student single family dwellings for conversion to owner occupied dwelling units. Motion carried 3-0. Marketing Materials Wick introduced the agenda item. Strack stated she had forwarded links from other sites and a Sherburne County website to EDA members for review prior to the May meeting. In addition she had contacted Stearns Electric and Xcel Energy regarding their participation in an update of a map developed several years ago by the Chamber of Commerce. Stearns Electric noted they did not have funding available. Xcel indicated a willingness to participate on an advertising basis. Finally Strack noted Osberg had reportedly approached Colleen Hollinger Petters regarding interest by Chamber in updating the map. Osberg reported more potential interest in electronic media than printed media. Hosch noted with session wrap up he did not have an opportunity to review the weblinks. Frank noted he did review the links. He opined most communities didn't have a measureable EDA presence on their websites. Frank stated he was overall pleased with the information available on the St. Joseph website but thought additional information could be provided under building permits and code review links and the quality of life link. Wick concurred with Frank. Frank stated a link to demographic data available through the US Census could be helpful. Wick suggested the Board consider marketing as part of the annual budget process which would commence in June. Frank stated additional local information such as crime rates, police protection, fire ratings, and the like could also be helpful to potential businesses. Frank noted St. Cloud State University was considering the addition of a Masters in Public Administration program. He noted the program would be very expensive but could result in opportunities for an internship program with the City. Wick asked if the Board agreed that from a material standpoint consensus was to look at electronic versus print media. The Board agreed. Schultz inquired as to the purpose of a marketing effort, if it was to provide information or target specific groups. Hosch stated it was both. Schultz opined a need existed to market the community and not just May 22,2013 EDA Meeting Page 3 provide information. He suggested the difference between providing information and marketing was that between happenstance and targeting. Frank suggested using interns more. Wick noted marketing interns might be a good fit. Schultz suggested Frank frame an internship program. Downtown Master Plan Wick noted this project was shelved pending a decision by the City Council of what to do with the police and government center and/or a community center. Wick reported the City Council had decided to maintain police and administrative offices at the current location. In addition the Council Chambers would be moved to a new ground floor room and a gathering/meeting room would be added onto the current building. Wick further reported a facilities group made up of residents would be investigating where an active community center could be located along with a program for funding not only initial purchase and construction but continued operations and maintenance as well. Wick stated that Mayor Schultz would like to move ahead with a downtown master plan at this point.Wick inquired as to whether or not the Board wished to move ahead with a master plan at this time. He noted that the EDA has done downtown planning at several points in the past including a visit by the Governor's Design Team, investigation relating to parking, and rental conversion. Schultz stated he did not see an active community center fitting within the Downtown. He stated a committee of residents will look at where a community center could possibly be located. Hosch agreed with the thought the government center should remain Downtown and the community center should be located elsewhere. Frank noted the Downtown had other positive things occurring such as the Farmer's Market moving to the area and opportunities associated with the turnback of CSAH 2 to the City. Wick suggested the EDA consider creating business incubator space in the Downtown. Schultz recommended the EDA look at a four block area within the Downtown and actually physically draw what it should look like. Consensus of the Board to discuss at the June meeting what a Downtown Master Plan should entail, if that means drawing lines on paper or something else. Purchase of Former Kennedy Elementary School Wick introduced the agenda topic. He noted the City Council had ruled purchase of the former school out as an option several months ago. Wick noted the group being formed to look at an active community center may not rule out the purchase of the former school. Wick noted the school property includes 15 acres of land and that ISD has no plans to re-occupy the site at this time. He further noted ISD 742 would like to sell the property but doesn't have a buyer. Wick stated Little Saints Academy and Head Start are now leasing space at the site. He stated the issue of financing a purchase is key. Schultz noted he brought this issue up and opined the EDA could get a favorable deal with the school district and that the site would provide the EDA/City with land and a potential incubator site. Wick stated he liked the facility from a parks perspective. Schultz directed the EDA to discuss whether or not purchase of the building was viable, to deterimine whether the site was usable as an incubator facility, and to determine whether or not purchase of the former school made financial sense. Hosch noted he liked the idea of purchasing the former school, but not for$3.5 million. May 22, 2013 EDA Meeting Page 4 Frank noted that he understands the land alone would likely cost $2.5 to $3 million. He suggested the EDA/City would need to pin down the cost as some are thinking !SD would part with the facility for as little as $1 M. Frank questioned that even if the EDA had the authority to purchase the former school, if it would be in the best interest of residents and if it would be the best use of public funds. Frank estimated increased tax of$55 per person per year to purchase the facility. Schultz opined the EDA was tasked to find out what to do with the building, if it was suitable for use as a business incubator. Frank inquired as to where the review should begin. Strack noted prioritization of EDA project and resources was paramount and earlier in the year the EDA had again embraced the concept of extending utilities to I-94/CSAH 2 as its priority. Strack also noted land use was an issue with which the Planning Commission was typically tasked. Frank stated that it may be a good use of the EDA's time to re-examine priorities. Business Development Report. The report was acknowledged. Board Member Announcements. Schultz reported the City Council and St. Joseph Township Board met earlier in the month. The purpose of the meeting was to discuss orderly annexation. Schultz requested the EDA review the Comprehensive Plan and provide direction on future land use west/north of I-94/CSAH 2. Schultz stated he had made it clear to at least some of the Board Members that he intended to pursue an annexation agreement for property north/west of 1-94. Adjournment. Motion by Frank, Seconded by Hosch to adjourn the EDA meeting at 6:19 pm. Motion carried 3-0. May 22, 2013 EDA Meeting Page 5