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HomeMy WebLinkAbout2013 [08] Aug 28CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes — Wednesday August 28, 2013 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch (5:15 — 5:45), Gary Osberg, and Dale Wick. Absent: None. Also present EDA Director Cynthia Smith - Strack. Call to Order. Chairperson Wick called the August 28, 2013 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Danielson, second by Osberg to approve the agenda as presented. Motion carried 4 -0. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the July 24, 2013 regular EDA meeting. Motion by Frank, Second Wick to approve the July 24, 2013 minutes as presented. Motion carried 4 -0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for July 2013. Included in the amount was $2,622.62 (MDG contract and mileage) and the check register. Wick also alluded to the financial reports included in the packet. Wick inquired as to why there were negative interest earnings of ($239.44) in the Summary Treasurer's Report. Strack noted she would consult with Finance Director Bartlett regarding the item. Motion by Wick, Seconded by Osberg to approve the accounts payable and financial reports as presented. Motion carried 4 -0. Approval of TIF Disbursements. Chairperson Wick introduced TIF disbursement for Millstream Shops /Lofts and the St. Joe Meat Market. He noted the memo referenced "First State Bank" which should be "Sentry Bank ". Strack noted the payment for Millstream Shops /Lofts was $17,102.50 or 90% of the first half taxes received. The payment to St. Joe Meat Market was $1,771.05 or 95% of the increment received. Osberg inquired as to how long TIF payments are made. Strack noted it is dependent on the type of district. The Millstream 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 go' arrangements which meant a specified portion of the taxes were rebated to the property owners. Motion by Osberg, Second Danielson to approve TIF disbursements in the amounts specified. Motion carried 5 -0. Membership in Greater St. Cloud Development Corporation - 2013 August 28, 2013 EDA Meeting Page 1 Wick introduced the agenda item and noted the EDA had discussion on joining the Greater St. Cloud Development Corporation for the remainder of 2013 but had not formally provided for membership. The fee for membership included in the invoice from GSCDC is $2,500. Motion Osberg, Second Steve Frank to join the Greater St. Cloud Development Corporation with Dale Wick being the EDA Representative to the Corporation. Motion carried 4:0. Hotel Concept. Wick introduced the agenda item. Strack noted that at the previous EDA meeting the Board directed staff to contact the City of Crookston and other Cobblestone communities regarding their experience with the Cobblestone Hotel group. She was also directed to research hotel /hospitality market study providers. The direction was subsequent to discussion regarding a proposal from the Cobblestone group. Strack reported that several communities with similar populations in other areas were contacted regarding the hotel, whether or not a market study was completed, and whether or not financial assistance was issued for the project. She noted eight communities were contacted. In addition she called the City of Cokato and researched activity in the City of Glencoe. Both communities has recently completed market studies as the request/direction of Cobblestone representatives. Strack noted four of eight communities had commissioned market studies when working with Cobblestone. The other four did not. A total of seven of the eight communities had provided financial assistance (most often tax increment financing and /or abatement) to the Cobblestone Hotel project in their jurisdiction. The cities of Cokato and Glencoe had completed market studies and were now in the process of securing investors. In addition, Strack noted she researched eight hospitality market research firms at the request of the EDA. Two were suggested by EDA Board Member Osberg (Maxfield and Patek Hospitality Consultants), Three were recommended by Cobblestone (Hospitality Marketers International, Hospitality Consultants, Inc. and Core Distinction Group); all three had close ties to Cobblestone in previous hotel projects. The remaining three (LHR Hospitality Management, HVS Hotel Management, and Hospitality Consultants Group) were identified through a web search. Osberg stated he preferred a research group without ties to Cobblestone. Wick asked Strack about Maxfield Research. Strack noted Maxfield was well known and well respected in providing municipalities market studies, mostly related to housing and commercial studies. She was not aware of a specialty in the hospitality market. Hosch recommended the EDA take care to ensure market research firms are well respected. Wick inquired as to any of the Board Members had any qualms about how a hotel study may impact the Super 8. Through consensus the EDA Board indicated qualms were absent. Frank stated the McComb Study from 2007 did not include lodging in square footage demand calculations. He noted when SCSU completes studies clients occasionally call years afterward with questions regarding what was incorporated in the study. He suggested McComb Group be contacted to determine whether or not this information was available through background for the 2007 market study. Frank noted that if he were to consider investment in a hotel, he would not do so without having independently researched the business opportunity further. Frank opined he was in favor of considering incentives for a project but was not sold on a full -blown market study. The EDA directed Strack to follow up with McComb Group regarding information contained in the 2007 market study. Frank opined the market could determine when /if a hotel was feasible. August 28, 2013 EDA Meeting Page 2 Wick noted that Cobblestone could undertake a study independently if they thought St. Joseph was a profitable site for a mid -scale hotel. Danielson opined a market study would be a way to encourage investors to take a look at a hotel concept near 1 -94 and CSAH 2. A potential means to start development in the area. Osberg opined the logical expectation is there is demand for commercial development adjacent to 1 -94. He questioned the EDA's role in jump- starting development in the area. He opined a market study is one means of getting the ball rolling toward development at 94. Wick noted someone was needed to catch the ball as well. Osberg stated he supported a study, he felt strongly the EDA needed to undertake a study to initiate development. Frank noted he could appreciate Osberg's comment but in his view the company should undertake market research, not the EDA. Osberg suggested soliciting proposals from the final three hospitality research firms identified in the staff memo. He noted soliciting proposals in response to an RFP would not bind the EDA to undertaking a study. Danielson stated the EDA has agreed development at 1 -94 and CSAH 2 is the priority. He opined studies in the past have been successful in identifying opportunities upon which the private sector has then capitalized. Osberg stated that perhaps the owners of property adjacent to 1 -94 would sell to real estate development professionals and not attempt to act as developers themselves. Hosch opined a market study could be premature as the preferred location was not serviced by municipal utilities at the present time. Osberg stated the EDA needed to do something. Hosch and Wick noted the Council hasn't decided to extend sewer to the preferred development area at this juncture. Motion Oberg to contact final three hospitality firms identified in the staff memo with a request for proposals including pricing and methodology. Osberg stated he was trying to push the ball off the mountain, get the ball rolling. Danielson inquired as to what action had been taken to further development of 1- 94 /CSAH 2. Wick noted the Council had met, a sewer main capacity study had been completed, and the Council would consider how to proceed. It was certain the City would not assume financial responsibility for sewer extension. Danielson stated he understood funding options were limited and the EDA had a finite amount of capital to invest in business opportunities. However, he noted return on this investment could be considerable. Second by Danielson. Frank stated he supported keeping the ball rolling but didn't support moving forward at this time. Wick concurred. August 28, 2013 EDA Meeting Page 3 Osberg stated he would investigate other sources of funding for this study. Frank inquired as to whether or not Brian Schoenborn had been contacted regarding a study. Motion carried 4 -1, with Frank voting nay. Meetings with Downtown Property Owners. Wick introduced the agenda item. Strack noted Hosch (was) volunteered to follow up with the owner of property at 117 and 121 Minnesota Street West. Hosch noted he did speak to the property owner. The property owner also owns student rental houses at 403, 409, and 413 College Avenue North. The property owner would be interested in selling properties north of CSAH 75, but not really 117 and 121 Minnesota Street West. Hosch stated in years past the properties adjacent to Minnesota Street were considered for redevelopment. Hosch inquired as to whether the property owner would consider alternative uses for 117 and 121 at this time. Hosch stated the property owner didn't have any real interest in reuses at this time. Strack asked whether Hosch thought the property owner would consider an offer. Hosch thought the property owner would consider an offer. The Board next considered property owners listed on a spreadsheet in the packet. Staff was directed to follow up on property at 1st Avenue NW and the property at 13 Ash Street. Osberg requested maps of the Downtown area be stored in the conference room for ready reference at future EDA meetings. Danielson noted he was somewhat uncomfortable with spot development and with the EDA holding property until development occurs. Wick noted any property purchased would have to make sense for future parking or quick turnover. Strack inquired as to interest in reaching out to property owner at 117, 121 Minnesota through a realtor. Consensus supported. Frank requested input on reaching out to JR Mobile. Frank noted synergy in cleaning up area and helping business owner. Wick floated the idea of a land swap. All noted outdoor storage could be limited. City Wi -Fi. Wick introduced the agenda item and requested information from Osberg. Osberg stated he had attended a Chamber of Commerce meeting where technology was discussed. He noted he had a brief conversation with Blake Thoennes from Computer Repair Unlimited regarding city wi -fi. Osberg thought it was something the EDA should have knowledge of and /or discuss. Wick stated he had addressed the potential to have a City wi -fi network available for use at City Parks. Frank distributed printed information to EDA Board Members. He stated he had worked in the early 1980's with the Mn. Public Utilities Commission on research relating to equitable access to the internet. Frank noted as time has progressed communities that have been proactive in establishment of broadband infrastructure have had varying degrees of success. Most notably City broadband in Monticello has not performed as expected financially. Frank stated he was intrigued by Google's efforts. He opined access to technology is a basic right. Frank also stated that in his opinion communities most at risk for falling behind technology are those without August 28, 2013 EDA Meeting Page 4 private sector service providers. He characterized service availability in St. Joseph as competitively priced and widely available due to the presence of several providers. Frank further stated that some communities define high speed internet access as a 'public service' and provide access at all public service buildings and parks but not at homes and businesses. Wick noted existing franchise agreements require 'free' service be provided to public buildings. Frank noted that those franchise agreements and the investments locally by large telecommunications providers have led to good speeds, good access, and controlled costs. He noted providing wi -fi at public parks may be categorized as a 'public service'. Wick stated he favored the idea of wi -fi in parks but opined it is probably not an EDA issue. Osberg stated he had learned a lot from the discussion but didn't think anything more needed to be done. Wick noted the City Council may talk about this issue further in the future. Business Development Report. The report was acknowledged. Board Member Announcements. Hosch and Osberg exited the meeting. Danielson requested an update on the status of a government center and community center. Wick noted the government center was in the design stage with an architect and that a new community center group had been formed. Danielson noted the gathering space at St. Joseph Catholic Church was now open. Adjournment. Motion by Frank, Seconded by Danielson to adjourn the EDA meeting at 6:15 pm. Motion carried 3 -0. Y n ith-Strack EDA Director August 28, 2013 EDA Meeting Page 5