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HomeMy WebLinkAbout2012 [09] Sep 26CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes — Wednesday September 26, 2012 Present: Chair Dale Wick; Board Members Tom Skahen, Larry Hosch (5:10 p.m), Doug Danielson and Steve Frank. Absent: none. Also present: Talieza Callaway - Newsleader, Ken Jacobson -TKR Enterprises, Jason Kresbach and Lori Ziebel from Central MN Housing Partnership, Michael McDonald and Economic Development Consultant Joanne Foust. Call to Order. Chairperson Wick called the September 26, 2012 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Frank seconded by Skahen to approve the agenda with the addition of Business g. Manufacturer's Week Business relating to the Demolition Grant moved to 5:30 p.m. Motion carried 4 -0. Approval of Minutes. Wick introduced the minutes from the August 22, 2012 regular EDA meeting. Motion by Skahen, Second Danielson to approve the August 22, 2012 minutes as presented. Motion carried 4 -0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for September 2012 in the amount of $2,655.10 (MDG contract and mileage). Motion by Danielson, Seconded by Wick to approve the accounts payable and the September financial reports as presented. Motion carried 4 -0. Commissioner Hosch arrived at 5:10 p.m. Business Retention and Expansion. Wick introduced the agenda item. Foust reported that 19 of the 163 or 11.65% businesses have responded to the survey. A summary of responses was referenced. Foust reported that follow -up has occurred with nine businesses that either requested information on the BFA Grant, Revolving Loan Fund, needs for warehouse space or plans to relocate. She also forwarded the names of four businesses to the Chamber that requested more information on the Chamber of Commerce. Foust suggested as a next step that Post Cards be sent to those that have not responded. The cost to print and mail 130 postcards is estimated at: $65. She noted that on October 2 "d the Executive Board, of the Chamber of Commerce will discuss providing a $50 drawing to businesses responding by October 29, 2012 as an incentive. Staff provided the program at the September 12, 2012 Chamber meeting regarding the BRE Survey Program. Approximately 25 people were in attendance. Three Chamber members, Janell VonPinnon, September 26, 2012 EDA Meeting Page 1 Randy Schmitz, and Mike McDonald have volunteered to assist with the program by conducting follow - up calls and /or site visits. Mike McDonald noted the Chamber of Commerce has email addresses for approximately one -half of the businesses. He noted they will assist in encouraging the completion of the survey with through an email. It was the consensus of the EDA to proceed with the post card mailing and develop a call list of the businesses that have not yet responded for the October EDA meeting. BFA — Scenic Specialties. Chairperson Wick introduced the agenda item noting Scenic Specialties, at 31101 County Road 133, submitted an application for a BFA Grant in the amount of $1000 for the installation of faux windows and an exterior fireplace. The EDA reviewed the application in August and approved $550 or one -half the estimated $1,160 for faux windows. The applicant would like the EDA to reconsider funding for the exterior fireplace as well. The agenda item was tabled as the applicant was not present. Demolition Grant. Chairperson Wick introduced the agenda item. Ken Jacobson, Kelly Jacobson, Mark Moore and Tom Moore, dba TKR Ent. have submitted an application for funding from the Demolition Grant Program for $2,500. TKR Ent. 115 Cedar Street East, St. Joseph, is seeking funds to assist with demolition, which is projected to cost $10,500. The applicants propose to demolish the principal structure, which is an existing residential rental home on the site. They are uncertain at this time if they will demolish the accessory structures as well. There are no immediate plans for the reuse of the site. There is another home adjacent which they plan to demolish in a year. At that time they plan to combine the two sites to make them more marketable for commercial purposes. The Demolition Grant Program requirements were reviewed as they relate to the application, Ken Jacobson was present and reported they plan to contact the St. Cloud Tech School Fire Program to burn the structure. They have indicated St. Cloud Tech will do asbestos testing and carry the insurance. A spring 2013 burn is planned. Foust noted the balance in the Demolition Grant Fund as of August was $3396. Motion by Skahen, Seconded by Hosch to approve a $2500 demolition grant for TKR Ent. for the demolition of 115 Cedar Street East, contingent upon obtaining the required demolition permit, with funds dispersed to the applicant upon submittal of receipts or invoices and inspection which certifies the work completed is in accordance with the EDA approval and other city ordinances, with the demolition and site restoration to be completed by July 31, 2013. Downtown Master Plan. Wick introduced the agenda item referencing a memo and map included in the information packet. The memo outlined the possible Table of Contents for the Plan. Commissioners reviewed the proposed boundary and requested it be expanded to include an additional three blocks. The EDA reviewed the anticipated chapters and requested information on two sections at each upcoming meeting. Small Cities Development Grant. Wick introduced the agenda item. Foust reported that the City of St. Joseph applied for a Small Cities Development Grant in 2011 for housing rehabilitation, but it was not funded. The state has modified its criteria and as a result the City Council has authorized reapplying for funds for 2013. Jason Kresbach and Lori Ziebel of CMHP addressed the EDA. They noted in 2011, the City applied for a single purpose application for housing rehabilitation. They inquired if the EDA would like to apply for a comprehensive grant and include commercial rehabilitation. Kresbach noted the EDA would need to September 26, 2012 EDA Meeting Page 2 identify a condensed target area and adopt the required federal resolution declaring the area slum and blight. He noted the federal definition requires that 25% of the buildings in the area are in need of repair including bringing buildings to current code requirements. CMHP would send information to gauge commercial owner's interest in the program. He noted the maximum project would be $40,000 and could be structured with 40% as a 10 year forgivable loan, 40% as a 1 %, 15 year loan and 20% equity. They EDA could structure the percentages differently if desired. He noted the EDA's revolving loan fund and business facade funds could be used as leverage in the application. Demolition fund dollars would not be eligible. The pre - application is due November 15, 2012 with invitations for final applications in December, 2012 and final applications due February 28, 2013. Motion by Skahen, Seconded by Frank to recommend to the City Council the inclusion of the commercial rehabilitation program in the Small Cities Development Grant application, provided there is commercial business interest. Motion carried. 5 -0. Business Development Report Foust referenced a business development report which was included in the packet. She noted McDonald's plans to break ground October 8, 2012 and open in January, 2013. Auto Color /Industrial Supply at 718 191h Avenue is planning a 400 square foot addition and other modifications. A business inquired about the old feed mill. An individual was provided information on available spaces for a retail business. Also, a biomedical industry toured the former Safe Shred Building. They have submitted some of the information for the TIF application, but the data is not yet complete. They have offered to meet with City officials next Wednesday to share more about their project and answer questions. Foust inquired about EDA Commissioners' availability. Chairperson Wick noted he will be calling for a special meeting for Wednesday, October 3, 2012 to meet with an industrial prospect. The time and location will be announced. Manufacturer's Week Wick introduced the agenda item. Foust reported that the MN Department of Employment and Economic Development has proclaimed October 22 "d -27th, Minnesota Manufacturer's Week. In order to recognize the contributions these businesses make to the local economy through tax base, jobs /wages, etc. the state is encouraging local EDA's and Cities to have local manufacturers' week events. Foust referenced a Proclamation the City could adopt, certificates of commendation for manufacturers signed by the Governor as well as other optional events the EDA could sponsor. Commissioners reviewed the list of manufacturers and added Sunset Manufacturing and Auto Color /Industrial Supply. They asked that city staff review the list to ensure no manufacturers are inadvertently omitted. Motion by Frank, Seconded by Danielson to recommend the City Council proclaim the week of October 22 -27'h as St. Joseph Manufacturers Week and to recognize the local manufacturers with Certificates of Commendation signed by the Governor. Motion carried 4 -1 -0, with Skahen abstaining. Board Member Announcements. Wick reported the City Council conducted a workshop on future growth and planning of infrastructure to support the growth along CR 2/1 -94 and the Feld Farm area on the north side. The Feld Farm is in an September 26, 2012 EDA Meeting Page 3 orderly annexation area staged for 2017, so CR 2 may be the immediate focus. A future joint Council , EDA and Planning Commission workshop will be held to further discuss this. Danielson reported the Parish Center conducted its groundbreaking. Adjournment. Motion by Skahen, Seconded by Hosch to adjourn the EDA meeting at 6:25 pm. Motion carried 5 -0. Cynthia Smith- (rack EDA Director September 26, 2012 EDA Meeting Page 4