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,
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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
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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
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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
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