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HomeMy WebLinkAbout[04] Minutes - July 24, 2013 CITY OF ST.JOSEPH ECONOMIC DEVEIOPMENT AUTHORITY Meeting Minutes—Wednesday July 24, 2013 Present: Board Members Doug Danieison, Steve Frank, Larry Hosch (5:45), Gary Osberg, and Dale Wick. Absent: None. A1so present resident Greater St. Cloud Development Corporation (GSCDC) President Patti Gartland, Kayla Welz Schuizetenberg, Deb Weiz, City Administrator Judy Weyrens, Michaei McDonaid and EDA Director Cynthia Smith-Strack. Cait to Order. Cnairperson Wick called the July 24, 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 Danielson to approve the agenda as presented. Motion carried 4-0. Guest. Chairperson Widc introduced GSCDC President Patti Gartland. Gartland referenced materials included in the EDA packet. She noted there are a total of 100 investors in the GSCDC of which 90�were from the private sector. She noted the GSCDC arganization is twq years old and public sector irnestors are St. Cloud, Sarteil, and Sauk Rapids. She noted Cold Spring is considering invesiing as well. Gartland noted they have 'investors'and not'members'. Gartland explained several core initiatives of the GSCDC. One core initiative is revitalizing Downtown St. Cloud. She stated that a vibrant St. Cloud downtown is a benefit to the region as a whole. Another initiabve is bringing daily air service back to the St. Cloud Airport. She noted the GSCDC has been meeting with potential suitors to make daily service from St. Cloud to Chicago a realiry. She expects a deal wiH b+e announced to those ends by the dose of 2013. Gartland stated the GSCDC is also working to tap inko the creativity of 4ocai coifeges and universities. Another iniiiative is the estabiishment af a web based 'talent core' that wili address workforce issues and cannect potential employers and potential employees. A final initiative is cammunity wellness. Initially this initiative was focused on work place safety but has since besn broadened to include community wellness. The GSCDC is pursuing a regional `Blue Zone'approach to wellness. Gartland also noted the GSCDC will bring a site selsctor inta St. Cloud later this ysar. The purpose of the visit wilt be to ac�uaint the site selector representative with what the St. Cloud region has to offe� perspective businesses. In return the site selector will comment on the positives and challenges of doing business in the St. Cloud region. Gartland noted the GSCDC has reviewed public investment and is witling to accept a $5000 annual investment from the City of St. Joseph as apposed to ihe$7,5Q0 made by Sauk Rapids and Sartell. Osberg stated he wanted the City/EDA to invest in the GSCDC at this time. Danielson inquired as to what type of feedback is provided ta investors. Gartland noted metrics are impo�tant to the GSCDC although some measures are difficult to track at this time. She noted investors receive quarterly updates. Widc noted previaus feedback from the community regarding membership in the GSCDC relating to partnering in the event the City of St. Cloud was the 'top dog'. He further noted he was not supporting that commeni. He then referenced non-compete a�rangements supported by the former St. Ctoud Area July 24, 2013 EDA Meeting Page 1 � Econarnic Develapment Pa�#nership. Gartiand stated the focus of GSCDC is serving business and not serving individual cornmunities. She further noted the CSCOCs priarity was to keep businesses where they were and if that wasn't possible the next priarity was to relocate that business within the community where it currently existed. Only after exhausting those options would locations in other communities be cansidered. C?sberg sta#ed that part of the EDA's role would be to make the GSCDC aware of what is available in St. Joseph. Gartland noted a staffing change was underway in that John Kramer was leaving his post and a Business Development Director was going ta be added shortty. That persan wauld be responsible for conversing with 14ca1 EDD's regarding availability of landlbuildings. Frank noted he had previously uiewed ihe GSCDC as a private sector effort that cvuld provide spin-off benefits to St, Joseph without investment. He then stated he was now more favarable to investing in the GSCDC. He noted he did have remaining concern for the wage 1eve1 of new jobs in the St. Cloud area. He opined many new jobs being created a�en't at a livable wage. He stated a need to attraci quality jobs, nat just any jabs. Danielsan npted agreement with Frank and expressed a need to keep talented workers in the St. Cloud area. He opined talented people leave St. Claud for the Twin Cities and higher wages. He further noted retum on the EDA's investment would be an important criterion for future invesiment. Wick thanked Gartland for her presentatian and indicated the EDA would discuss future investment during budget discussians later in the meeting. Public Gomment. St.Joseph resident Michael McDonald spoke. He referenced an article in the St. Joseph Newsleader newspaper rega�ding demolition of the existing City offices. He then referenced an existing bond. He opined the building is in nice shape. He opined the future of the existing City offices tied iMo the EDA's dovmtown revitalization effort and future goals. He opined the EDA's role should be to sell the property. Approval af Minutes. Chai�person Wick introduced the minutes from the June 26, 2013 regular EDA meeting. Mofion by Qsberg, Second Frank to approve the June 26, 20i3 minutes as presented. Motian carried 4-0. Accounts Payable and Monthly Report. Chairpe�son Wick introduced ihe agenda items and reviewed accounts payable for June 2013. Included in the amount was $2,411.31 {MDG conirac# and mileage) and the check register. Wick also alluded to the financial reparts included in the packet. Frank inquired as to how long certain iine items would remain in certain funds. He specifically referenced "St. Claud EDA Membership Dues° in the Summary Treasurer's Repart. Strack noted the reports were automatically generated and she would fallow up with Finance Director Bartlett. Mafion by Frank, Seconded by Osberg to apprave the acco�nts payable and �nancia! reports as presented. Motion carried 5-0. Appraval of TI� Disbursements. Chairperson Wick introduced TIF disbursement for Millstream ShopslLafts and tne St. Joe Meat Marlcet. He noted the memo re#erenced"First State Bank"which should be"Sentry Bank". Strack noted the payment for MiNs#ream Shopsll.o#ts was $17,102.50 ar 90% of the first half taxes recsived.The paymeni fo St. Joe Meat Markei was$1,771.05 or 95°l0 of the increment received. July 24, 2013 EDA Meeting Page 2 � (?sberg inquired as to how long TIF payments are made. Strack noted it is dependent on the type of district. The Milistream TIF was a redevelopment district with a 25 year term, the Meat Market was an economic development district with a term of nine years. Both were established as `pay as you ga' arrangements which meant a specified portian of the taxes were rebated to the property owners. Motian by Osberg, Second Danielson to approve T!F disbursements in the amounts specified. Mation carried 5-0. BFA Grant Request Wick introduced the BFA grant request fram Retail Therapy. Strack d'+stributed the appiication and background information as referenced in the information packet memo. She introduced Kayla Welz Schuizentenberg and Deb Weiz who we�e present. Strack noted she had met with Schulzentenberg at the store front earlier in the month ta review proposed grant eligible items. Those items were addressed in the grant application and included exterior painting, exterior brick sealing, signage, and exterior ptanters/landscaping. Strack noted the total project cost. included in the grant application was $992 to $1,042. The grant would match up to 50% of qualifying costs after invoices were received. Motian Frank, Second Osbe�g to approve the BFA applicatian. Mofion carried 5:0. Schultzentenberg thanked the EDA. Wick inquired as to date of siore apening. Schultzentenberg noted opening scheduled for August 21�. Hotel Concept. Widc recused himself and tumed leadership of the meeting to Vcs Chair Danielson.Wick cited a previous interest in hotel ov►mership as ihe reason far recusal. Danielson introduced the agenda item. Stradc noted Council Member Renee Symanietz met a representative from BriMark Construction, a sister company io Cobblestone Hotels, at a League of Minnesota Cities conference in June. Symanietz requested Strack follow up with the representative rega�ding lacating a Cobblestone Hote!in St.Joseph. She met with dot�n Seibert ea�tier in the month. Strack noted Cobblestone was in the business of sefling hotet franchises and BriMarlc in hotel building. She further noted Cobblestone's approach was a bit different in that the Company would secure hotel investors in the event a marlcet study iltustrated a hote4 concspt would be successfut in the community. 1n addition, Cobblestone itself would hold an equity stake in the tocal franchise. Strack noted the packet contained infomiation regarding Cobblestone, Bri-Mark, and a third company under the same ownership which provided hotel management services. Strack also noted Cobblestone positioned itself as a mid to upper scale facitity as opposed to budget type hatel styles. Seibert suggested a hotet in St.Joseph should include conference facilities and a� indoo�pool. Strack indicated she informed Mr. Seiberi of perceived 'study fatigue' on behalf of the EDA. Osberg inquired as to what led to the 'study fatigue' camment. Frank noted a previous martcet study and a previous study regarding the fiscal impact of a change in the student rental market. Strack noted Seibert suggested Cobblestons could provide partial funding for a hospitality study and that the Coltege had previously expressed interest in br�nging conference facilities to the community. Osberg made a motion to move ahead with a hotel study independent of Cobblestone/BriMarlc. The motion failed for lack of a second. Hosch stated he was willing to further explore Cobblestone as they profess to be able to secure investors. Weyrens inquired as to whether or no# the Initiative Foundation could participate in such a study. Strack noted she would investigate but thought the Initiative Foundation typically pursued p�ojects related to community participation and co{labaration. Frank suggested contacting the City of Crooksion or other July 24, 2013 EDA Meeting Page 3 � cammunities where Cobblestone franchises had been established to obtain feedback on the cornpany. Frank also suggested contacting agencies/enti#ies tha#conduct hospitality market studies. Motion Osberg, Second Hosch ta move ahead with additional investigation buf without a defined position. Mofion carried 4:0. Strack requested clari�catian on whaf specificaqy was intended. Strack was directed to contact the City of Crookston and other Cobblestone communities regarding their experience with the hote! group. She was also dir�cted to research hotel/hospitality market study providers. Danielson returned the meeti�g back over to Chairperson Wick. 20i4 Proposed Budget. Chairperson Wick introduced the agenda topic noting tfie EDA had reviewed the preliminary budget at the June meeting. Strack reviewed the propased budget in the EDA packet and propased capifat projects as discussed at #he previaus EDA meeting. She siated General Fund 150 was a true 'hold the line' budget; Funds 157 and 158 were strictly pass through funds with estimates from project pro formas; and that Fund 250 was capitali2ed through loan repayments. She referenced the capital projects and noted budgeted expenses far computerslsaftware in the amount of $500 and requests far downtown revitalization and business development tataling $15,000 and $18,000 respectively. The preiiminary budget totaled $126,595 ihe sams as 2013 and included Funds 150, 157, 158,and the capital�equest. C?sberg nated a typographical error in the Ca�itai Fund requsst total. The tatal on page 47 of the EDA packet shauld be $33,5Q0 as opposed to $33,QQ4. The number included in the draft expense budget on page 43 was cc>nect at$33,500. Frank spoke about his determinatian ta have a paid intemship program established that would be mutually beneficial to a student and khe City and sourced through CSB or SJU. Frank suggested allocating $4,pQ0 to such an effart. Wick inquired as ta what task(s) an iniem woutd be assigned. F�ank noted a good intem could cantribute in meaningfu! ways to many different prajects, �anielson stated intems can indeed be helpful if they are assigned a specific project to which they are weA suited. Frank suggested the EDDJEDA would direct the intem's activities. Wick asked Administ�atar Weyrens how the war{cer's Unions wouldlcould react to a paid internship position. Weyrens responded i# would fikely depend on what job duties were assigned. Strack noted Administ�ator Weyrens had suggested a downtown-centered, heritage-based outdoor community showcase eve�t ihat coutd bring downtawn praperty owners together toward a common event.The gaat wouid be to buitd community and unite merchants ir� the dvwntvwn. Sirack atso aNuded to the desire to bring the Farmer's Market to the downtown. She suggested both projects could be led by an intern. The Baard discussed investment in 2014 in the GSCDC at a ievet of$5,Ofl0. Motion C?sberg, Second Frank to recommend a preliminary budget fotaling $130,595.00 and including $4000 in line 1Qi (Sataries) for an intern and moving $5C)OQ from line 328 (Marketing) to tine 433 (Dues and MembershipJ to accammodafe an investmenf in the GSGDC. Motion carrled 5.0. Meeting�With Downtovirn Property Owners. Wick iniroduced the a�enda item. Strack stated that a# the June meeting she was directed ta compile information on downtown property awners who had indicated a willingness ta seil tneir property andJor farecast a significant change to their property when surveyed earlier in tne year. After brief discussion Hosch volunteered to reach ouf #o Dale Sehneider regarding renial properties abutting West Minnesata Street. July 24, 2013 EDA Meeting Page 4 � Business Development Report. The report was acknowledged. Board Member Announcements. None. Adjoumment. Motian by Osberg, Seconded by Hosch to adjourn the EDA meefing a#6:40 pm. Motion carried 5-0. July 24, 2013 EDA Meeting Page 5 �