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HomeMy WebLinkAbout2013 [10] Oct 23 Stt. Joseph Ecnomic Deelopmen Authorit oovvttyy Meeeting Noticee ednesda, October 23, 2013 WWyy 5:00pp.m. City HHall 1. Call Meeing to Ordr. ttee 2.pprovalof Agenda. A 3. Public Cmment oo 4.pprovalof Minutes. A a. Seeptember 255, 2013 Regular Meeting 5.Accountss Payable and Financiaal Report. a.proval of ccounts Pyable and Financialeports AppAAaaRR 6. Business. a. Hootel Study RRFP b. Bsiness Rond Table uuuu c. Billboard Propposition d. Bsiness Deelopmentpdate uuvvUU 7. Board Mmber Annuncemens. eeoott 8.djournent. Amm A QUORUM OF THE CITY COUNCCIL MAY BE PRESENT ATT THIS MEETTING. Page 1 of 40 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes – Wednesday September 25, 2013 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch (5:15), Gary Osberg, and Dale Wick. Absent: None. Also present EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the September 25, 2013 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Chairperson Wick introduced the agenda. Motion by Osberg, second by Frank to approve the agenda as presented. Motion carried 4-0. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the August 28, 2013 regular EDA meeting. Motion by Osberg, Second Wick to approve the August 28, 2013 minutes as presented. Motion carried 4- 0. Accounts Payable and Monthly Report. Chairperson Wick introduced the agenda items and reviewed accounts payable for August 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 reviewed correspondence from Finance Director Bartlett regarding negative interest earnings of in the Summary Treasurer’s Report which are the result of GASB requirement to “mark it to market”. Motion by Frank, Seconded by Wick to approve the accounts payable and financial reports as presented. Motion carried 4-0. Hotel Study RFP. Wick introduced the agenda item. Strack noted that at the previous meeting the EDA requested MDG prepare and distribute a request for proposals (RFP) to selected hospitality research firms. An RFP has been prepared and distributed to three firms in the Twin Cities: Hospitality Consulting Services, LHR Hospitality Management, and Leines Hotel Advisors. A copy of the RFP solicitation was included in the information packet and is specific to the “Gateway” site at I-94. The RFP includes a disclaimer allowing the City/EDA to accept or reject any/all proposals. th . It also provides for the formation of a The RFP reflects a submission deadline of September 27 selection subcommittee or review by complete EDA and the potential to interview candidates or not to interview candidates. In addition Strack noted she contacted Jim McComb from McComb Group LTD regarding scope of information gathered in the market research study. McComb noted hospitality and lodging were not parameters included in the study. Page 2 of 40 Strack requested input from the Board on proposal review, specifically, whether or not the full EDA wishes to review the responses, appoint a sub-committee, discuss at a later date, or proceed differently. Danielson inquired as to whether or not GTI and/or Walz Properties, LLC were contacted regarding the request for proposals as they are owners of the study site. Strack stated she had reached out to both entities prior to the meeting regarding a possible study, a finding that sewer main capacity was available, and the need to annex and plat the property. Wick explained the City Council had been informed capacity existed in the sewer main adjacent to Minnesota Street and the possibility of installing a required lift station in conjunction with a previously scheduled utility and street improvement project. Wick noted cost of sewer extension to subject property was $1M. Osberg inquired as to availability of municipal water at the site. Wick noted water main runs through the site. By consensus the EDA Board decided to review the proposals independently and discuss at their meeting October 23, 2013. Downtown Properties. Wick introduced the agenda item. Strack alluded to previous discussions regarding outreach to owners of property within the Central Business District. st Ave NW who indicated the Strack stated she had spoken with a representative for the property at 33 1 dwelling would likely be listed in late Fall as commercial property. The estimated market value is $87,000 at this time, decreasing from 2012 when it was $92,500. Strack stated she had solicited input from Finance Director Bartlett regarding EMV’s for 2014. Bartlett indicated residential EMV’s will probably level have leveled out or be slightly increasing due to the pace of home sales over the past year. Bartlett indicated commercial property values were likely to lag a bit. Strack noted she had reached out to the owner of property adjacent to College Avenue North. The owner had not returned phone calls. The EMV for the property was $78,100. Finally Strack reviewed comparable sales data for two rental units adjacent to West Minnesota. Frank stated the City Council during the EDA update at a previous meeting spoke about properties in the Downtown. Frank’s sense is that if the EDA focused on purchasing a property the City Council would give due consideration to such an acquisition, even if the EDA did not have cash on hand to purchase the property. The EDA Board discussed the status of different properties within the Downtown and potential future use and/or reuse of said properties. The EDA by consensus directed staff to reach out to the owner of property adjacent to West Minnesota Street. EDA Outreach Event. Wick introduced the agenda outline. Strack stated the EDA goals for 2013 include market outreach and the EDA has not yet hosted an event. She developed a few alternatives for EDA consideration following a review of pertinent information regarding best practices and innovative ideas for rural economic development. The suggestions included: A “bring your business ideas” event where entrepreneurs can visit with business experts, financial advisors, marketing gurus, and the like regarding potential projects. The goal of this type of an event would be to capitalize on potential projects percolating in entrepreneurial minds. An alternative is to combine this event with advice for existing business owners as well. Experts could be from Minnesota Business and Finance Agency, local banks, SCORE, SCSU business, Page 3 of 40 etc. Potential draw backs include low attendance and concerns regarding privacy and/or sharing of proprietary information. “Best Neighbor” recognition. Written descriptions of good deeds and a picture of the ‘best’ neighbor posted on the City website. The goals of this marketing strategy are to grow community spirit and create a personal web presence (pictures of actual residents + good deeds = a very real, personal image of community & visual representation of high quality of life). This concept could be reinforced by running in newsletter. Pictures of business owners accompanied by a profile of the business owner on the website. Goal is to literally put a face on business in St. Joseph. This concept could reinforced by running in newsletter. Round table discussion with local residential real estate agents. Goal is to learn what motivated people to move to St. Joseph and what their interests are. The information could be beneficial to retail/service establishments and give us a better profile of who is coming into/leaving town. Frank voiced support for all four ideas opining the first item had the most value, especially through collaboration with existing resources, but that the item might be the most work for a smaller return. Hosch suggested the profile and best neighbor items if showcased on the website would gain additional exposure by partnering with the local newspaper. Strack suggested partnering with The Record as well. Danielson inquired as to how to move forward with the profile and best neighbor items. The EDA by consensus directed Strack to contact The Newsleader and The Record regarding business profiles. In addition, Strack is to organize a round table discussion with local real estate representatives. Finally Strack is to contact the Greater St. Cloud Development Corporation regarding an event with entrepreneurs and business owners. Billboard Proposition. Wick introduced the agenda item. Strack stated she had spoken with a local business owner who inquired as to the EDA’s potential interest in organizing a billboard lease arrangement. The business owner suggested an effort wherein the EDA would secure billboard square footage either adjacent to CSAH 75 in St. Cloud or adjacent to I-94 south/east of St. Joseph. Then a number of businesses could sublease space on the billboard. The sub-leasers could advertise around a specific event (e.g. Millstream Arts Festival, Farmer’s Market in Downtown, “Heritage Festival”, etc.) or around a central advertising message (e.g. progressive sale, sidewalk sales, garage sale weekend, etc). The item has not been included as a goal in the past, but could be considered marketing. The 2013 line item for ‘marketing’ currently has a balance of $4,000. The proposed 2014 budget includes $3,000 for marketing. Wick stated the rent for a billboard adjacent to CSAH 75 is $800/month. He opined the cost of a billboard adjacent to I-94 would be much greater. Hosch noted his view of billboards is somewhat ambiguous to negative due to previous experiences. Osberg inquired as to the status of the sign at CSAH 75 and College Avenue North. Wick noted the sign is scheduled for demolition. By consensus the EDA directed staff to obtain pricing for billboard rental adjacent to 75 and I-94. BFA Grant Disbursement. Page 4 of 40 Strack apologized for an oversight but requested the EDA consider adding discussion regarding reimbursement for Business Façade Architectural Grant expenses for Retail Therapy. The EDA had approved reimbursement of up to 50% of costs associated with the opening of the retail establishment at College and Minnesota, to a maximum of $1,000. The EDA approved amendment of the agenda. Strack distributed invoices and receipts illustrating project expenses of $405.58 for Retail Therapy. The disbursement request was for $202.79 from the BFA approved on July 24, 2013. Motion Danielson, Seconded Osberg to approve BFA disbursement in the amount of $202.79 for Retail Therapy. Motion carried 5:0. Business Development Report. The report was acknowledged. Board Member Announcements. Danielson reported that a polka night at the Heritage Hall (St. Joseph Catholic Church) was well attended. He noted the hall will eventually be available for community use via a rental arrangement. The space includes a commercial kitchen. Adjournment. Motion by Hosch, Seconded by Osberg to adjourn the EDA meeting at 6:00 pm. Motion carried 5-0. Page 5 of 40 October 16, 2013 DATE: :: St. Joseeph Econommic Developmment Authoritty MEMO TO FROM: Cynthiaa Smith-Stracck Municipall Development Group RE: Accounnts Payable Septemmber Financiaal Reports A. Accounts Payable:: Following aare Accounts Payable for thhe EDA’s Connsideration. ooFor FundAmounnt Payable T MDG, Inc. Sept. Econ. DDev. Service 150-46500-300 $ 2,6222.62 $2,200 servicces, $422.62mileage Total $ 2,6222.62 *Plus invoicces noted on enclosed cheeck register. h tt eeptember 30a total of 3324.50 contraact hours havve been provvided; 95.50 Through Shours remain on tthe contract. Action: A MOTION is in order too approve the Accounts Paayable. B. Financiaal Report: September financial repoorts are attacched for your cconsiderationn. The reportss consist of: Monthly Repport. 1. Balance Sheeet. 2. 3.EDA revenuue to date. 4.EDA expendditures to datee. 5.Check Regisster 6.CIP Summaary A MOTION is in order too approve the Financial Reeports. Page 6 of 40 INVOICE MDG,I. UNICIPAL EVELOPMENT ROUPNC 25562 WILLOW LANE NEW PRAGUE, MN 56071 City of St. Joseph 952-758-7399 Attn: Judy Weyrens FAX: 952-758-3711 City Administrator staff@municipaldevelopmentgroup.com PO 668 St. Joseph, MN 56374 Payment TermsCustomer ID #: Invoice Date 10-10-13: 30 days STJ13EDA Project Aug EconomicDevelopment Services Amount: $2,200.00 Monthly contract fee $ 422.62 748 miles x .565 $2,622.62 Code to: 150-46500-300 for general EDA Remit To : Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 Dates-EDAHours September 4, 2013 EDA Office Hours: C. Strack 8.00 Hours September 6, 2013 EDA Office Hours: C. Strack in MDG Office 4.50 Hours September 11, 2013 EDA Office Hours: C. Strack 7.50 Hours September 11, 2013 EDA Office Hours: J. Anderson in MDG Office 0.50 Hours September 18, 2013 EDA Office Hours: C. Strack 7.50 Hours September 25, 2013 EDA Office Hours: C. Strack 9.00 Hours Total September 201337.00 Hours Total Contract Hours September 30, 2013: 324.50 Hours Thank you! We appreciated the opportunity to work with you! _________________________________ Check No .__________________ Principal Date : ______________________ Page 7 of 40 St. Joseph Economic Development Authority Summary Treasurer's Report - Fund 150 September 2013 Fund 150, EDA Balance as of December 31, 2012(audited) 77,651.57 Year to Date Revenue: Interest Earnings38.63 DEED Housing Fees11,250.00 Ad Valorem Taxes65,505.67 Total Revenue76,794.30 Year to Date Expenditure Total by Project: Market Development8,672.79 ** Business Development13,165.41 ** Organizational Development4,015.83 ** Infrastructure Development- ** Workforce Development- ** 25,854.03 Year to Date Expenditures by Object: Board Stipends- Staff Salaries(107.14) Workers Comp Premium(2.57) Office Supplies- Software Support(622.93) Municipal Development Group(17,556.51) Legal/Engineering Fees- Telephone(578.87) Postage- Business Luncheon- Marketing(2,736.07) Advertising(30.62) Rentals (Postage Machine)- EDA Programs(6,093.69) Total Expenses(27,728.40) Fund Summaries as of September 30, 2013: EDA Fund Balance - Fund 150 - unaudited 126,717.47 39,086.44 Designated for Capital Programs 15,368.57 Designated for DEED Housing Projects 72,262.46 Undesignated TIF 2-1 Millstream Shops and Lofts Fund Balance - Fund 157 12,516.10 TIF 2-2 St. Joseph Meat Market Fund Balance - Fund 158 (558.28) Revolving Loan Fund Balance - Fund 250 28,787.28 ** Detail available upon request Page 8 of 40 10/16/13 9:22 AM CITY OF ST. JOSEPH Page 1 EDA Balance Sheet Current Period: September 2013 YTDYTDCurrent FUND DescrAccount DescrBegin YrDebitCreditBalance FUND 150 Economic Development Economic DevelopmentG 150-10100 Cash$79,525.68$102,750.26$56,058.47$126,217.47 Economic DevelopmentG 150-10450 Interest Receivable$75.73$0.00$75.73$0.00 Economic DevelopmentG 150-10700 Taxes Receivable - Delinquen$893.10$0.00$893.10$0.00 Economic DevelopmentG 150-13113 Due From other Gov t Units$351.51$0.00$351.51$0.00 Economic DevelopmentG 150-15500 Due From Other Fund$500.00$0.00$0.00$500.00 Economic DevelopmentG 150-20200 Accounts Payable-$2,801.35$2,801.35$0.00$0.00 Economic DevelopmentG 150-22204 Deferred Revenue-$893.10$893.10$0.00$0.00 Economic DevelopmentG 150-24415 Design. Fd Bal - Capital Proj-$13,296.71$0.00$0.00-$13,296.71 Economic DevelopmentG 150-25310 Appropriated Fund Balance-$64,354.86$56,485.71$105,551.61-$113,420.76 FUND 150 Economic Development$0.00$162,930.42$162,930.42$0.00 FUND 157 TIF 2-1 Millstream TIF 2-1 MillstreamG 157-10100 Cash$10,832.25$41,946.34$40,262.49$12,516.10 TIF 2-1 MillstreamG 157-10450 Interest Receivable$12.43$0.00$12.43$0.00 TIF 2-1 MillstreamG 157-13113 Due From other Gov t Units$0.00$0.00$0.00$0.00 TIF 2-1 MillstreamG 157-20200 Accounts Payable$0.00$0.00$0.00$0.00 TIF 2-1 MillstreamG 157-25310 Appropriated Fund Balance-$10,844.68$40,274.92$41,946.34-$12,516.10 FUND 157 TIF 2-1 Millstream$0.00$82,221.26$82,221.26$0.00 FUND 158 TIF 2-2 Meat Market TIF 2-2 Meat MarketG 158-10100 Cash$30.02$2,425.11$2,513.41-$58.28 TIF 2-2 Meat MarketG 158-20500 Due To Other Fund-$500.00$0.00$0.00-$500.00 TIF 2-2 Meat MarketG 158-25310 Appropriated Fund Balance$469.98$2,513.41$2,425.11$558.28 FUND 158 TIF 2-2 Meat Market$0.00$4,938.52$4,938.52$0.00 FUND 250 Revolving Loan Fund Revolving Loan FundG 250-10100 Cash$22,746.98$6,336.18$295.88$28,787.28 Revolving Loan FundG 250-10450 Interest Receivable$24.25$0.00$24.25$0.00 Revolving Loan FundG 250-11900 Notes Receivable$36,130.90$0.00$36,130.90$0.00 Revolving Loan FundG 250-20200 Accounts Payable$0.00$0.00$0.00$0.00 Revolving Loan FundG 250-22204 Deferred Revenue-$36,130.90$36,130.90$0.00$0.00 Revolving Loan FundG 250-25310 Appropriated Fund Balance-$22,771.23$320.13$6,336.18-$28,787.28 FUND 250 Revolving Loan Fund$0.00$42,787.21$42,787.21$0.00 $0.00$292,877.41$292,877.41$0.00 Page 9 of 40 10/16/13 9:31 AM CITY OF ST. JOSEPH Page 1 EDA Revenue Report Current Period: September 2013 2013September2013 FUND DescrSOURCESOURCE DescrYTD Budget2013 AmtYTD Amt FUND 150 Economic Development Economic Development31010Current Ad Valorem Taxes$126,095.00$0.00$65,505.67 Economic Development33160Federal Grants - Other$0.00$0.00$0.00 Economic Development34150TIF/MIF Deposit$0.00$0.00$0.00 Economic Development34200DEED Housing Reimbursem$0.00$11,250.00$11,250.00 Economic Development36210Interest Earnings$500.00$373.67$38.63 Economic Development39201Transfers from Other Funds$0.00$0.00$0.00 FUND 150 Economic Development$126,595.00$11,623.67$76,794.30 FUND 157 TIF 2-1 Millstream TIF 2-1 Millstream31050Tax Increment$0.00$0.00$19,002.78 TIF 2-1 Millstream33404Market Value Credit$0.00$0.00$0.00 TIF 2-1 Millstream34150TIF/MIF Deposit$0.00$0.00$0.00 TIF 2-1 Millstream36210Interest Earnings$0.00$52.28-$8.60 FUND 157 TIF 2-1 Millstream$0.00$52.28$18,994.18 FUND 158 TIF 2-2 Meat Market TIF 2-2 Meat Market31050Tax Increment$0.00$0.00$1,864.26 TIF 2-2 Meat Market34150TIF/MIF Deposit$0.00$0.00$0.00 TIF 2-2 Meat Market36210Interest Earnings$0.00$1.11$0.61 TIF 2-2 Meat Market39201Transfers from Other Funds$0.00$0.00$0.00 FUND 158 TIF 2-2 Meat Market$0.00$1.11$1,864.87 FUND 250 Revolving Loan Fund Revolving Loan Fund36210Interest Earnings$300.00$88.00-$45.90 Revolving Loan Fund39320Revolving Loan Principal$7,095.00$594.98$5,301.75 Revolving Loan Fund39321Revolving Loan Interest$985.00$78.57$760.20 Revolving Loan Fund39322Revolving Loan Origination $0.00$0.00$0.00 FUND 250 Revolving Loan Fund$8,380.00$761.55$6,016.05 $134,975.00$12,438.61$103,669.40 Page 10 of 40 10/16/13 9:24 AM CITY OF ST. JOSEPH Page 1 EDA Expenditure Report Current Period: September 2013 2013September2013 Account DescrYTD Budget2013 AmtYTD Amt FUND 150 Economic Development E 150-46500-101 Salaries$0.00$0.00$91.92 E 150-46500-103 Legislative Bodies$1,260.00$0.00$0.00 E 150-46500-121 PERA Contributions$0.00$0.00$6.67 E 150-46500-122 FICA Contributions$0.00$0.00$5.66 E 150-46500-123 Deferred Comp-Employer$0.00$0.00$1.57 E 150-46500-125 Medicare Contributions$0.00$0.00$1.32 E 150-46500-151 Workers Comp. Insur. Prem.$10.00$0.00$2.57 E 150-46500-200 Office Supplies$500.00$0.00$0.00 E 150-46500-215 Software Support$540.00$0.00$622.93 E 150-46500-300 Professional Services$28,000.00$2,371.11$17,556.51 E 150-46500-303 Engineering Fee$2,000.00$0.00$0.00 E 150-46500-304 Legal Fees$1,000.00$0.00$0.00 E 150-46500-321 Telephone$785.00$61.63$578.87 E 150-46500-322 Postage$350.00$0.00$0.00 E 150-46500-328 Marketing$8,000.00$2,500.00$2,736.07 E 150-46500-331 Travel & Conference Expense$150.00$0.00$0.00 E 150-46500-340 Advertising$500.00$0.00$30.62 E 150-46500-410 Rentals$0.00$0.00$0.00 E 150-46500-433 Dues & Memberships$0.00$0.00$0.00 E 150-46500-434 Certification Fee$0.00$0.00$0.00 E 150-46500-582 Computer Software$0.00$0.00$0.00 E 150-46500-588 EDA Programs$33,500.00$454.30$6,093.69 E 150-46500-622 TIF/Abatement Payments$50,000.00$0.00$0.00 E 150-49300-720 Transfers to Other Funds$0.00$0.00$0.00 FUND 150 Economic Development$126,595.00$5,387.04$27,728.40 FUND 157 TIF 2-1 Millstream E 157-46500-101 Salaries$0.00$0.00$91.92 E 157-46500-121 PERA Contributions$0.00$0.00$6.67 E 157-46500-122 FICA Contributions$0.00$0.00$5.66 E 157-46500-123 Deferred Comp-Employer$0.00$0.00$1.57 E 157-46500-125 Medicare Contributions$0.00$0.00$1.32 E 157-46500-131 Health Insurance$0.00$0.00$0.00 E 157-46500-132 Dental Insurance$0.00$0.00$0.90 E 157-46500-133 Life Insurance$0.00$0.00$0.08 E 157-46500-134 Disabilty Insurance$0.00$0.00$0.51 E 157-46500-300 Professional Services$0.00$0.00$81.00 E 157-46500-317 Other fees$0.00$0.00$0.00 E 157-46500-331 Travel & Conference Expense$0.00$0.00$0.00 E 157-46500-340 Advertising$0.00$0.00$30.63 E 157-46500-622 TIF/Abatement Payments$0.00$0.00$17,102.50 E 157-49300-720 Transfers to Other Funds$0.00$0.00$0.00 FUND 157 TIF 2-1 Millstream$0.00$0.00$17,322.76 FUND 158 TIF 2-2 Meat Market E 158-46500-101 Salaries$0.00$0.00$128.70 E 158-46500-121 PERA Contributions$0.00$0.00$9.31 E 158-46500-122 FICA Contributions$0.00$0.00$7.94 E 158-46500-123 Deferred Comp-Employer$0.00$0.00$2.18 E 158-46500-125 Medicare Contributions$0.00$0.00$1.86 Page 11 of 40 10/16/13 9:24 AM CITY OF ST. JOSEPH Page 2 EDA Expenditure Report Current Period: September 2013 2013September2013 Account DescrYTD Budget2013 AmtYTD Amt E 158-46500-131 Health Insurance$0.00$0.00$0.00 E 158-46500-132 Dental Insurance$0.00$0.00$0.91 E 158-46500-133 Life Insurance$0.00$0.00$0.07 E 158-46500-134 Disabilty Insurance$0.00$0.00$0.52 E 158-46500-300 Professional Services$0.00$0.00$0.00 E 158-46500-340 Advertising$0.00$0.00$30.63 E 158-46500-622 TIF/Abatement Payments$0.00$0.00$1,771.05 FUND 158 TIF 2-2 Meat Market$0.00$0.00$1,953.17 FUND 250 Revolving Loan Fund E 250-46500-300 Professional Services$0.00$0.00$0.00 E 250-46500-304 Legal Fees$0.00$0.00$0.00 E 250-46500-317 Other fees$0.00$0.00$0.00 E 250-46500-434 Certification Fee$0.00$0.00$0.00 E 250-46500-455 Revolving Loan Proceeds$0.00$0.00$0.00 FUND 250 Revolving Loan Fund$0.00$0.00$0.00 $126,595.00$5,387.04$47,004.33 Page 12 of 40 10/16/13 9:23 AM CITY OF ST. JOSEPH Page 1 EDA Check Register CHECK #Search NameCommentsFUNDDEPARTAmount 046971CENTRYLINKSep T1/long distance/PD/WTP15046500$61.63 046977GREATER ST. CLOUD DEVELOP CORP2013 investment - 3rd & 4th q15046500$2,500.00 047010MUNICIPAL DEVELOPMENT CORPAug website15046500$71.87 047010MUNICIPAL DEVELOPMENT CORPAug marketing material15046500$341.20 047010MUNICIPAL DEVELOPMENT CORPAug mtgs/research/Qualified p15046500$1,616.58 047010MUNICIPAL DEVELOPMENT CORPAug business retention15046500$251.51 047010MUNICIPAL DEVELOPMENT CORPOrganizational development-A15046500$341.46 047010MUNICIPAL DEVELOPMENT CORPallocate Aug EDA services15046500-$2,622.62 047010MUNICIPAL DEVELOPMENT CORPAugust EDA services15046500$2,622.62 047057RETAIL THERAPY, LLCBFA grant15046500$202.79 $5,387.04 Page 13 of 40 Date: October 6, 2013 11 Memo To: Members of the EDA City Admiinistrator Weyyrens Memo From: CynthiaSSmith-Strack -- MDG, Inc. RE: Hospitalityy Feasibility RReport RFP SSolicitation dd Backgroun: The EDA recceived two prooposals followwing distributioon of a requeest for proposaals for a hosppitality feasibility repport. EDA members received copies of the ssubmittals andd were askedd to review annd evaluate baased on three criteeria. The resuults follow. It iss noted the EDA did not aggree to move forward with a study, only too solicit propoosals. The prooposal solicitaation carried tthe disclaimerr. HOOTELFEASIBLITYSTUUDYPROPOOSALEVALLUATIONMMATRIX HospitalityCConsultingGroup(Bid$9,,500) Overall:Qualifications(Asssignanumbeervaluebetwween1 202001520 &25with255beinghighesstawarded) Overall:Suitaabilityofapprroachandproocess(Assigna numbervaluebetween1&45with455beinghighesst353553040 awarded) Overall:Costt(Assignanumbervaluebbetween1&330with 251552525 30beinghighhestawardedd) TOTAL807007085 LHRHospitaalityManagemment(Bid$8,,500) Overall:Qualifications(Asssignanumbeervaluebetwween1 241552020 &25with255beinghighesstawarded) Overall:Suitaabilityofapprroachandproocess(Assigna numbervaluebetween1&45with455beinghighesst402554025 awarded) Overall:Costt(Assignanumbervaluebbetween1&330with 302003030 30beinghighhestawardedd) TOTAL946009075 Page 15 of 40 Both proposaals are attached for the EDDA’s referencee. Action: uust first decidee whether or nnot to pursue a study. Additional action would follow. The EDA m Page 16 of 40 HOSPITALITY CONSULTING GROUP 3¤¯³¤¬¡¤± ‘“þ ‘’ -² #¸­³§¨  3¬¨³§ 3³± ¢ª %$! $¨±¤¢³®± #¨³¸ ®¥ 3³ *®²¤¯§ 0/ "®· ••— 3³ *®²¤¯§þ -. ”•’–“-0668 2%feasibility study¥®±   §®³¤« ¨­ 3³ *®²¤¯§þ -. 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Page 23 of 40 -3 #¸­³§¨  3¬¨³§ 3³± ¢ª 0 ¦¤ 8 (¨¡¡¨­¦þ -¨­­¤²®³  ,¨¬¨³¤£ ²¤±µ¨¢¤ §®³¤« (#' ±¤¢¤­³«¸ ¢®¬¯«¤³¤£   §®³¤« ¬ ±ª¤³ ²³´£¸ ¥®± ³§¤ #¨³¸ ®¥ (¨¡¡¨­¦ ¥®± ³§¤¨± ´²¤ ¨­  ³³± ¢³¨­¦   §®³¤« developer. "¤¢ ´²¤   « ±¦¤ (¡´³  ¦¨­¦) ¥´«« ²¤±µ¨¢¤ §®³¤« ¤·¨²³¤£ ¨­ ³§¤ ¬ ±ª¤³þ ¶¤ ±¤¢®¬¬¤­£¤£   «¨¬¨³¤£ ²¤±µ¨¢¤ §®³¤« ¶¨³§  ­  £© ¢¤­³ ¥±¤¤ ²³ ­£¨­¦ restaurant ¡¤ £¤µ¤«®¯¤£ ³® ¬¤¤³ ³§¤ ¢®¬¬´­¨³¸² ­¤¤£² — 2%&%2%.#%3 4§¤ ¥®««®¶ ±¤¥¤±¤­¢¤² ¢ ­ ¡¤ ¢®­³ ¢³¤£ ±¤¦ ±£¨­¦ ³§¤ §®³¤« ¯±®©¤¢³² £¤²¢±¨¡¤£  ¡®µ¤ Mr. Bradley Chapulis Director of Community and Economic Development City of Worthington (507) 372-8647 bchapulis@worthington.mn.us -± 3¤ ­ 0¤£¤±²®­ #¨³¸ - ­ ¦¤± # ­³®­þ 3$ (•”) ˜—–-2881 sean.pederson@cantonsd.org -± 4®¬ $¨¢ª«¨¢§ #¨³¸ !£¬¨­¨²³± ³®± (¨¡¡¨­¦þ -. (‘—) ’•‘-5930 tdicklich@ci.hibbing.mn.us 4%2-3 !.$ #/.$)4)/.3 /´± ±¤¯®±³ ¶¨«« ¡¤ ¡ ²¤£ ®­ ¤²³¨¬ ³¤²þ  ²²´¬¯³¨®­²  ­£ ®³§¤± ¨­¥ ¥±®¬ ®´± ±¤²¤ ±¢§ ®¥ ³§¤ ¬ ±ª¤³þ ª­®¶«¤£¦¤ ®¥ ³§¤ ¨­£´²³±¸  ­£ ¬ representative² ®¥ ³§¤ 3³ *®²¤¯§ %¢®­®¬¨¢ $¤µ¤«®¯¬¤­³ !´³§®±¨³¸ 4§¤ ²®´±¢¤² ®¥ ¨­¥®±¬ ³¨®­  ­£ ¡ ²¤² ®¥ ®´± ¤²³¨¬ ³¤²  ­£  ²²´¬¯³¨®­² ¶¨«« ¡¤ ² 4§¤ ³¤±¬² ®¥ ³§¨² ¤­¦ ¦¤¬¤­³  ±¤ ²´¢§ ³§ ³ ¶¤ ¶¨«« § µ¤ ­® ®¡«¨¦²¤ ³§¤ ±¤¯®±³ ®± ³§¤ ¯±®©¤¢³¤£ ®¯¤± ³¨­¦ ±¤²´«³² ³® ±¤¥«¤¢³ ¤µ¤­³² ®± ¢ ²´¡²¤°´¤­³ ³® ³§¤ ¢®¬¯«¤³¨®­ ®¥ ®´± ¥¨¤«£ ¶®±ª ¨­ ³§¤ ¬ ±ª¤³ (  µ ¨« ¡«¤ ³® £¨²¢´²² ³§¤ ­¤¢¤²²¨³¸ ¥®± ¥´³´±¤ ±¤µ¨²¨®­ ¡¤¢ ´²¤ ® ¤¢®­®¬¨¢ ®± ¬ ±ª¤³ ¥ ¢³®±²  ¥¥¤¢³¨­¦ ³§¤ ¯±®¯®²¤£ ¯±®©¤¢³ 3®¬¤  ²²´¬¯³¨®­² ¨­¤µ¨³ ¡«¸ ¶¨«« ­®³ ¬ ³¤±¨ «¨¹¤þ  ­£ ´­ ­³¨¢¨¯  ¢¨±¢´¬²³ ­¢¤² ¬ ¸ ®¢¢´±ÿ ³§¤±¤¥®±¤þ  ¢³´ « ±¤²´«³²  ¢§¨¤µ¤£ £´±¨­¦ ³§¤ ¯¤±¨®£ ¢®µ¤±¤£ ¡¸ ®´± ¯±®²¯¤¢³¨µ¤  ­ «¸²¤² ¶¨«« µ ±¸ ¥±®¬ ³§®²¤ £¤²¢±¨¡¤£ ¨­ ®´± ±¤¯®±³þ  ­£ ³§¤ Page 24 of 40 -3 #¸­³§¨  3¬¨³§ 3³± ¢ª 0 ¦¤ 9 µ ±¨ ³¨®­² ¬ ¸ ¡¤ ¬ ³¤±¨ « &´±³§¤±þ ¶¤ ¶¨«« ­®³ ¡¤ ±¤²¯®­²¨¡«¤ ¤¥¥®±³²  ­£ ®³§¤± ¬ ­ ¦¤¬¤­³  ¢³¨®­² ´¯®­ ¶§¨¢§  ¢³´ « ±¤²´«³² ¶ /´± ±¤¯®±³ is ¨­³¤­£¤£ ¥®± ³§¤information of ³§¤ 3³ *®²¤¯§ %¢®­®¬¨¢ $¤µ¤«®¯¬¤­³ Authority  ­£ ¬ ¸ ¡¤ ´²¤£ ¨­ its ¤­³¨±¤³¸ ¨­ ²´¯¯®±³ ®¥ ¥¨­ ­¢¨­¦ ¤¥¥®±³² ¥®± ³§¤ proposed hotel (®¶¤µ¤±þ ­¤¨³§¤± ³§¤ ±¤¯®±³ ­®± ¨³² ¢®­³¤­³² ¬ ¸ ¡¤ ±¤¥¤±±¤£ ³® ®± °´®³¤£ ¨­  ­¸ ±¤¦¨²³± ³¨®­ ²³ ³¤¬¤­³þ ¯±®²¯¤¢³´²þ ¯±¨µ ³¤ ¯« ¢¤¬¤­³ ¬¤¬®± ­£´¬þ  ¯¯± ¨² « ®± ®³§¤± ¨­µ¤²³¬¤­³ £®¢´¬¤­³ ¶¨³§®´³ ®´± ¯±¨®± ±¤µ¨¤¶ consent. )³ ¨²  ¦±¤¤£ ³§ ³ ³§¤ «¨ ¡¨«¨³¸ ®¥ (®²¯¨³ «¨³¸ #®­²´«³¨­¦ '±®´¯  ­£ ¨³² ¤¬¯«®¸¤¤² ¨² «¨¬¨³¤£ ³® ³§¤  ¬®´­³ ®¥ ¥¤¤ ¯ ¨£  ² «¨°´¨£ ³¤£ £ ¬ 7¤  ¯¯±¤¢¨ ³¤ ³§¤ ®¯¯®±³´­¨³¸ ³® ²´¡¬¨³ ³§¨² ¯ropos « 7¤ «®®ª ¥®±¶ ±£ ³® ¶®±ª¨­¦ w¨³§ ³§¤ 3³ *®²¤¯§ %$! ®­ ³§¨² ¨­³¤±¤²³¨­¦ ¯roject. Sincerely, (/30)4!,)49 #/.35,4).' '2/50 3³¤¯§¤­ 7 3§¤±¥ President Page 25 of 40 Response to Request for Proposal Hotel Feasibility Report St. Joseph, Minnesota Prepared for: Ms. Cynthia Smith Strack EDA Director City of St. Joseph PO Box 668 St. Joseph, Minnesota 56374-0668 Presented by: Douglas G. Rohde President / Chief Executive Officer LHR Hospitality Management 360 North Robert Street, Suite 700 Saint Paul, Minnesota 55101 651-340-1880 doug@lodgehotels.com September 27, 2013 Page 26 of 40 September 27, 2013 Ms. Cynthia Smith Strack EDA Director, City of St. Joseph PO Box 668 St. Joseph Minnesota 56374-0668 Re: Response to Request for Proposal  Hotel Feasibility Report, St. Joseph, Minnesota Dear Ms. Smith Strack: It is our pleasure to be offered the opportunity to participate Feasibility Report for St. Joseph, Minnesota. LHR Hospitality Management (LHR) understands the scope of the seRFP is to determine if a hotel is feasible by the private sector at the proposed site (Inte not, to determine the financial gap and if it could be filled byLHR is committed to fulfill that pledge as proposed in the RFP and understands that offer. LHR Hospitality Management is a highly successful Developer, Ope Restaurants, Entertainment Venues and Golf Courses. We operate thirteen venues in six states, with approximately 500 employees and $30 million in revenue. LHR Man consistent experience for every guest while at the same time loo expectations and achieve solid financial performance. LHR provi experience for our staff. LHR is service minded and directly en present. Our companys headquarters is local which provides market familia hands on support that minimizes overhead expenses. On behalf of LHR Hospitality Management we thank you for the opp presenting to the City Council Member of St. Joseph. Sincerely, LHR Hospitality Management Douglas G. Rohde Joel C. Cairy President & CEO Executive Vice President of Operations & COO 1 Page 27 of 40 Organization of RFP I.A brief description of the presenting firm or department. II.Names, contact numbers, and email addresses of professionals whoproject. III.History of the presenting organization including number of simil five (5) years and simple aggregate percentage of your firms total recei comprised over the previous five (5) years. IV.Abbreviated qualifications and experience of all involved in the V.A detailed description of the approach or process that your firm accomplish the following in a concise, clear, and simple manner: a.Assess historic, present, and future demand and supply of hotel accommodations. i. The hotel feasibility study must evaluate the local market/trade whether the proposed site is suitable for hotel development. ii.The hotel feasibility study shall examine the local competitive market with regard to existing and proposed demand for hotel accommodation. iii.The hotel feasibility study shall determine which market segment experience growth. iv.The hotel feasibility study shall provide an opinion on whether e is likely to be favorable or unfavorable changes in the local hotel market. b.Discuss the demand for other hotel facilities, such as meeting a recreational facilities and recommend the optimal development st i.The feasibility study shall recommend appropriate facilities, highlighting th guestrooms that the market can sustain with an indication of the beverage outlets, meeting space, recreational facilities, and pa be developed. ii.While the feasibility study may highlight existing facilities in the local market, the feasibility study shall comment upon the f available and are required by the current market and what may be future. iii.The feasibility study shall address the competitive positioning relation to the market. c.Review and suggest the appropriate brand strategy for the subjec d.Produce an Internal Rate of Return calculation and supporting written discussion which concludes whether or not a project is financially feasible at th without public incentive. If public incentive needed to fill a g gap likely. e.Estimate operating income and expenses for ten years following the opening o study concludes a hotel is financially feasible at the proposed VI.An itemized table illustrating proposed fee(s) and a timeline coas required by #5 above (approach/process). In addition the proposa specifying a not to exceed cap on the project, including all a VII.A summary of three (3) similar projects conducted for municipalihe previous five (5) years. VIII.Brief references (contact name, phone number, and email address) your organization has completed similar projects. 2 Page 28 of 40 I.A brief description of the presenting firm or department. LHRs success is founded on our experience in developing and managing all aspects o- and full-service hotels including all national franchised, independent and boutiq waterparks and other entertainment venues. Our expertise is the force behind the strong financial results with an emphasis in producing top line revenues and exceeding each venue With over sixty years of proven hospitality leadership our statuders in hospitality management and is a Top 100 Hotel Management Compan Operator as ranked by Hotel Business magazine. National and International hospitality experience in managing prand upwards of 30,000 square feet of convention and event space prov restaurant, golf course or entertainment venue operation from a full service sector. From consulting services to complete venue management, LHR has a profi LHR prides itself in offering a full range of hands-on venue management services, spanning the entire investment cycle. LHR has a proven track record of identifying economically viable hotel/ restaurant opportunities that are profitable to both investors and the company. We have the abili construction. LHR has the industry resources to conduct market and/or full fea and ultimately identify the most appropriate hotel or venue prod experience in all aspects of hotel, restaurant, and entertainmenive operations, sales and catering experience we can advise existing profitable Business Plans. Having been affiliated with more than 300 hotels over the years, both nationally and internationally LHR has the experience to manage on a global level. Based in Saint Paul, Minnes the US, and take pride in the fact that one of our Senior Manage On-going visits and interaction with the regional staff provides assistance as needed to enhan experience and produce excellent bottom-line results. Timely reviews maximize the overall well-being and future viability of our hotels, restaurants and entertainment venues. II.Names, contact numbers, and email addresses of professionals who the project. All professionals who will be involved in the project office out located at: 360 North Robert Street, Suite 700, Saint Paul, Minnesota 55101. The main office and fax number are as follows: 651-340-1880 and 651-340-1624. Mr. Douglas G. Rohde Mr. Joel Cairy Mr. Mike Tozier President & CEO Executive Vice President & COO Chief Financial Officer C 715-222-8788 C 952-452-0626 C 952-240-1733 doug@lodgehotels.comJoel@lodgehotels.comTozier6@comcast.net 3 Page 29 of 40 Mr. Doug Karle Melia Nagel Vice President of Operations Executive Assistant C 612-396-6403 C 612-251-3028 dougk@lhrhospitality.commelia@lhrhospitality.com III.History of the presenting organization including number of similar projects completed in the previous five (5) years and simple aggregate percentage of your firms’ total receivables similar projects have comprised over the previous five (5) years. Hotel Feasibility and Market Study History - Approximately five percent (5.0%) of LHRs total receivables is from Hotel Feasibility and Market Studies. Hotel for Menahga, Minnesota, June 2013 Two Hotel Projects in Milwaukee, Wisconsin, March 2013 Hotel Feasibility and Market Analysis in Madison, Wisconsin, October 2010 Hotel Feasibility and Market Analysis in Statesville, North Caro Hotel Feasibility and Market Analysis for Pine City, Minnesota, January 2 Feasibility Analysis and Product Development Recommendation in B Product Analysis and Repositioning Study in Tofte, Minnesota, Ja Hotel Feasibility and Market Analysis in Duluth, Minnesota, October 2006 Current Hotel / Venue Management Contracts Holiday Inn, Elk River, Minnesota The Lodge at Crooked Lake, Siren, Wisconsin Suburban Extended Stay, Coralville, Iowa Econo Lodge, River Falls, Wisconsin University Inn, Minneapolis, Minnesota Super 8, Monticello, Minnesota Astoria Hotel and Event Center, Dickinson, North Dakota Best Western Plus, Dickinson, North Dakota Quality Inn and Suites, Dickinson, North Dakota Four Points by Sheraton, Minot, North Dakota Astoria Hotel and Suites, Glendive, Montana The Links at Northfork, Ramsey, Minnesota Wildwoods Indoor Water Park, Elk River, Minnesota IV.Abbreviated qualifications and experience of all involved in the $®´¦« ² ' 2®§£¤þ 0±¤²¨£¤­³ É #§¨¤¥ Executive Officer Mr. Rohdes vision began in 2001 upon the purchase of the Siren, concept. Expanding upon this concept, he and his business partner Joel Cairy founded Lodge Hotels & Resorts, known as LHR Hospitality Management in 2004 and with that designed and 4 Page 30 of 40 developed The Lodge at Brainerd Lakes in Baxter, Minnesota. Mr. Rohde primarily oversees the Operations and Development of each property. Prior to operating his own venue management and development comp served as Vice President of the North Central Region for Sunstone Hotel company with 70 hotels that carried 13 different brands, General Food & Beverage Manager at various properties for Larken Hotels, Corporations. He obtained a Bachelor of Science Degree in Hotel of Wisconsin, Stout. He has also served on several boards throughospitality industry and is very involved in tourism legislation throughout Wisconsin and Minnesota. *®¤« # # ¨±¸þ %·¤¢´³¨µ¤ 6¨¢¤ 0±¤²¨£¤­³ É #§¨¤¥ /¯¤± ³¨­¦ /¥¥¨¢¤± Mr. Cairy joined LHR in May 2004 as a business partner and Chief Operating Sales, Marketing and Development. He worked with Doug Rohde to Lodge at Brainerd Lakes. Mr. Cairy has served as the Director ofion and Corporate Travel at Northwest Airlines Worldwide where he achiev contract cost savings for the Company. He has held Director of where his team was responsible for $12 Million in sales, Larken Hotels where he increased a Hotels average rate by $16 in one year, Hyatt, Best Western as well as in the p Degree in Occupational Safety from the University of Wisconsin, teville. Mr. Cairy has also served on several boards throughout the hospitality industry and is very involved -¨ª¤ 4®¹¨¤±þ #§¨¤¥ &¨­ ­¢¨ « /¥¥¨¢¤± Initially serving as an independent financial consultant, Mr. To joined LHR on a permanent basis in November 2008 as the Chief Financial Officer and Corpor oversees the accounting and payroll functions for all venues, in which consists of $90 Million in hotel assets, over $30 Million in annual revenue and managing over 380 employees. Mr. Tozier is a Certified Public Accountant and industry consultant and has over seventeen years of banking tly serving as the Senior Vice President, Chief Financial Officer and Treasurer for the No Company, a privately held company consisting of $5.9 Billion in investments. He has also held the position of Director of the Minnesota member of the Wisconsin and American Institute of Certified Publ University of Wisconsin in Green Bay. $®´¦ + ±«¤þ 6¨¢¤ 0±¤²¨£¤­³þ /¯¤± ³¨®­² Mr. Karle began his career with LHR in December 2006 as General managed full-service properties prior to being promoted to Vice President of corporate level. His background includes over ten years in the hotel industry with both Embassy Suites and Holiday Inns where he increased service and quality s 5 Page 31 of 40 the Top 60 of all Holiday Inns as well as leading the Hotel to bt through implementation of excellent cost and labor controls. He volunte Committee of the Veterans for Foreign Wars of White Bear Lake wh restaurant which grosses $2 Million annually. He enforced cost of goods based pricing and i systems to forecast revenue ultimately decreasing cost of goods an extensive legal and commercial property management background Mr. Karle attended the University of Minnesota and holds a degree in Geography with an emphasis in Ur -¤«¨  % . ¦¤«þ %·¤¢´³¨µ¤ !²²¨²³ ­³  (´¬ ­ 2¤²®´±¢¤² Ms. Nagel joined LHR in March 2006 after over ten years at the h meeting planning level. She has been in the Sales and Catering d luxury, independent hotels where she was responsible for the hig-profile political groups and four of the Hotels Top Ten Accounts. As well as working in all resort in Colorado. Ms. Nagel obtained a Bachelor of Science Deg Administration from Embry Riddle Aeronautical University in Prescott, Arizona. V.A detailed description of the approach or process that your firm specifically accomplish the requirements as specified in item #5 in the RFP. The two principals of LHR have over sixty years of combined expe in the hospitality industry. Having experience ranging from hourly support positions all the way up to management at the hotel and corporate level, as well as experience in operating limited- and full-service branded and independent properties, they have the qualifications to back their research and recommendations when i recommendations. We take a hands on approach by personally visiting the proposed -on-one interviews with city leaders, industry leaders, Chamber of Commerce leaders facilities, to name a few. We also talk to leaders at local top businesses to determine their needs hotel accommodations and function space. We rely on industry standard reports and data from Smith Travel Research and Woods and Poole. We also access State / County / Mipal public records. Based upon our findings we will produce a Ten-Year Proforma based upon the size and type of facility recommended. We will determine what type of hotel branding, if any, would impacts to the hotel, as well as the area market based upon such branding. The Scope of Our Services addresses the following areas: Target Customers Needs and Preferences Product Positioning Comparable Facilities and Competitors in Other Markets Product Design Recommendations: Sizing, Space Allocations and Ex Related Facilities Brand Analysis and Recommendations (Franchise or Independent) General Pricing/Cost Summary General Market Review and Marketing Strategies 6 Page 32 of 40 1. SITE & SURROUNDING AREA Location Maps and Aerial Photographs Region, State, County, City and Site 2. GENERAL AREA MARKET TRENDS Comparison of Market vs. Other Markets Comparison of Demographics within 50, 100, 150 and 200 Miles Population, Households and Age Groups Income and Effective Buying Power Major Employers and Employment Airport Passenger, Water, Rail and Bus Traffic Interstate and Highway Traffic Area Growth - Industrial Space, Office Space, Retail Sales and Residential Sal New Business and Industry Tourist Attraction Attendance Convention Attendance 3. PROPOSED DEVELOPMENT ANALYSIS Access and Visibility Parcel Size, Configuration Surrounding Land Uses Proximity to Demand Generators Building and Zoning Regulations Utilities, Water and Sewer Site Preparation 4. SUPPLY ANALYSIS  HOTEL COMPETITION Hotels, Resorts, Restaurants, Conference Centers Area Visitor Attractions Competitor Profiles & Performance Proposed Additions/Deletions to/from the Supply 5. DEMAND ANALYSIS - ATTRACTIONS & DEMAND GENERATORS Demand Generators for Attractions, Sports and Recreation Facilit Demand Generators for Hotel Demand Generators for Restaurant and Bar Demand Generators for Conference Facilities Population by Distance from Proposed Site Projected Occupancy for Proposed Hotel Attendance Patterns and Visitor Profiles, Area Major Events Feeder Markets & Driving Distances Evaluation of Office of Tourism, Chamber and Convention and Visiureau Destination Promotion Past and Future Visitor and Convention Growth Related Developments Area Revitalization and Development 6. SUPPLY AND DEMAND TRENDS Industry Outlook and Trends: Lodging, Restaurants, Conference Fa Lodging Industry Performance Growth: National, Regional, State, Metro and Local Restaurant Performance Growth Conference Facilities Space Utilization Growth Visitor Attraction Attendance Growth Recreation Growth Fair Share and Penetration of Demand Seasonality and Length of Stay 7 Page 33 of 40 Estimate of Unsatisfied Demand Past and Future Supply and Demand Growth 7. RECOMMENDATIONS FOR PROPOSED DESIGN DEVELOPMENT Target Customers Needs and Preferences Product Positioning Comparable Facilities and Competitors Other Markets Product Design Recommendations: Sizing, Space Allocations and Ex Marketing Strategies Related Facilities VI.An itemized table illustrating proposed fee(s) and a timeline co individual elements as required by #5 above (approach/process). the proposal shall include a statement specifying a not to exceed including all associated expenses. FEASIBILITY ANALYSIS TO INCLUDE: 1.Assesses historic, present, and future demand and supply of hote 2.Considers the demand for other hotel facilities, such as meeting areas, restauran recreational facilities and recommends the optimal development s 3.Reviews and suggests the appropriate brand strategy for the subj 4.Includes an Internal Rate of Return calculation and supporting written discussion which conclud whether or not a project is financially feasible at the proposed incentive); 5.Includes an analysis of what financial gap may exist that could 6.Estimates operating income and expenses for ten years following concludes a hotel is financially feasible at the proposed locati COST OF SERVICES The work outlined above is proposed to be completed for $8,500.00 (eight thousand five hundred dollars), including the cost of out-of-pocket expenses for long-distance telephone, postage, photocopying, and printing with payment as follows: an initial deposit in the amount of $4,250.00 (four thousand two hundred and fifty dollars) would be required along with the signed contract prior to commenLHR and the balance of the contract due in installments billed at LHRs discretion. Outside data purchased, travel expenses and additio expenses (outside of the Work Product listed below) are included in the total cost of the project. The cost of the project shall not exceed $8,500.00 (eight thousand five hundred dollars), including all associated expenses. WORK PRODUCT The following meetings and report preparations are included in tLHR: Minimum of one (1) site visit to proposed location meeting with Client via telephone or in person to finalize study objectives meeting with Client in person to discuss draft report meeting with Client in person to review final report findings an Findings will be presented in bound report format and will be sunder review and a PDF file of the report will be provided. COMPLETION TIME The work outlined will be completed within ninety (90) days upon receipt of the contract and initial deposit in our offices, and specified start date, unless delayed by unexpected emergencies, forces beyond the control of one or both parties or by written agreement of the parties. 8 Page 34 of 40 VII.A summary of three (3) similar projects conducted for municipali previous five (5) years. To date our hotel feasibility studies have been conducted for privaowners, and / or developers. However we have worked with municipalities in accessing potentia Hotel for Menahga, Minnesota, June 2013 We were contracted by a private investor to complete a full market - o service lake front hotel in downtown Menahga, Minnesota. Though the results of the study showed the market would support such a venture, the size of the was recommended. The results of our study helped the customer h move forward with his plans until other arrangements could be ma Two Hotel Projects in Milwaukee, Wisconsin, March 2013 A local private developer contracted us to conduct a Hotel Feasibility and Market Analysis o different hotel projects in Milwaukee, Wisconsin. One in downtown Milwaukee and the other i the East Side neighborhood of Milwaukee. Our conclusions suppor the developer is continuing to move forward in the process. Hotel Feasibility and Market Analysis in Statesville, North Caro We were contracted by a private investor to assess the potential and demand for a historic, o boutique hotel in downtown Statesville, North Carolina. Specifically purchasing and re an existing building that had once housed a hotel. The results of our study determined it was a good market to support such a redevelopment project however the obtain the necessary financing. 9 Page 35 of 40 VIII. References b.Private Clients a.Municipal References (Though we work closely with Municipalities in many of our Mr. Sheldon Sagedahl Studies, the majority of our clients are C/O West Central Telephone Association private investors, owners and developers.) 14 Main St, PO Box 237 Menahga, MN 56464 Mr. John Edmonds 218-837-6021 / sheldons@wcta.net Director, Minnesota Office of Tourism Hotel Feasibility in Menahga, Minnesota th 121  7Place East Suite 100 Mr. Dave Graf Saint Paul, Minnesota 55101 Owner, Settle Inn Hotels & Suites, 651-757-1844 GuestHouse Suite Hotels Aberdeen, South Dakota Senator Sheila Harsdorf 605-228-1488 / dave@nvc.net (Former Chair of Wisconsin Tourism) th We have provided feasibility work and 10Senate District, Wisconsin management services. Room 18 S State Capitol Mr. Richard Jacobson PO Box 7882 Vice President, Midwest Division, Kraus- Madison, Wisconsin 53707 Anderson Construction Company 608-266-7745 PO Box 158, 8625 Rendova Street NE sen.harsdorf@legis.wisconsin.gov Circle Pines, Minnesota 55014 763-792-3618 rich.jacobson@krausanderson.com We have provided feasibility work, joint ventured development opportunities, and accommodations and event facilities. Mr. Kirk Pfeffer Owner, Lonestar Alliance / Holiday Inn Elk River 800 Bering Drive, Suite 350 Houston TX 77057 (713) 783-5388 / kirk@lonestaralliance.com We have provided management services and joint ventured on hospitality projects. 10 Page 36 of 40 Date: October 6, 2013 11 Memo To: Members of the EDA City Admiinistrator Weyyrens Memo From: CynthiaSSmith-Strack -- MDG, Inc. RE: Event: Reeal Estate Round Table dd Backgroun: At the Septemmber EDA meeeting the Booard discussedd several poteential market outreach activities. Thee Board by coonsensus agrreed to move forward with ee event with reeal a round tabl estate repressentatives. th The real estaate round table event is sett for Wednesdday, October 30 at 8 a.m. at the Fire HHall. The goal of thhe round table discussion is to generatee a profile of people movinng to St. Joseph and those mooving from Stt. Joseph. Thee profile would include whaat drew peoplle here and wwhere their interestss lie. At this time we have 15 persons wwho have indiccated they will attend the rround table. In addiition to electeed/appointed oofficials we will have realtoors, builders, aand loan officcers. In addition, thhe EDA lookeed at other acctivities. Updaates on those activities folloow: “Brinng your Business Ideas”” event wheree entrepreneuurs can visit wwith business expeerts, financial advisors, marketing guruss, and the like regarding pootential projeccts. Thegoal of this tyype of an evennt is to capitaalize on potential project peercolating in entreepreneurial mminds. An alterrnative is to ccombine this eevent with advvice for existing businness owners as well. Expeerts could be ffrom Minnesoota Business aand Finance Agenncy, local bannks, SCORE, SCSU busineess, etc. Poteential draw baacks include loow attenndance and cooncerns regaarding privacy and/or sharinng of propriettary informatioon. Update: I’ve conntacted the Grreater St. Clooud Developmment Corporattion regardingg parrtnering on thiis project. Wee’ve been refeerred to the GGSCDC’s “Innnovation Corpps”. EDDA Chair Wickk has been invvited to strateegize with the Innovation CCorps at a futuure meeeting. “Besst Neighbor”” recognitionn. Written descriptions of goood deeds annd a picture oof the ‘bestt’ neighbor poosted on the CCity website. TThe goals of tthis marketingg strategy aree to groww community sspirit and creaate a personaal web presennce (pictures oof actual residdents + goood deeds = a very real, peersonal imagee of communitty & visual reppresentation oof high). Could reinfforce by running in newslettter. quality of life Updaate: I’ve contaacted the Newwsleader regaarding partnerring on this prroject. The followwing will be inncluded in thee November ““In the Know iin St. Joe Newwsletter”. ‘Aree you luckyy enough to hhave the best neighbor in toown? If so wee’d like to heaar from you. Please email or seend written deescriptions off why your neeighbor is the best neighboor in townn. We’d like too recognize goood deeds annd kind actions of our ‘bestt’ neighbors. Incluude your neighhbor’s name aand address along with yoour name and contact informmation’. Conttact informatioon follows. Page 37 of 40 Face of Business. The Picturs of busines owners acompanied b a profile of the eessccyy nness owner on the websitee. Goal is to literally put a fface on busineess in St. Josseph. busi Could reinforce byy running in nnewsletter. Update: I’ve contacted Thhe Record’s addvertising deppartment regaarding partnering on this project. The RRecord is currrently discusssing the projeect and favoraable toward pparticipation. TThe following will be included iin the Novemmber “In the Knnow in St. Joee Newsletter””.‘The St. Josseph EDA is intereested in puttinng a face on bbusiness (literrally) in St. Jooseph. It doessn’t matter if thhe business is aan industrial, ccommercial,oor home businness establishhment; we waant to know wwhat sets them appart. Email us your authorizzed photos (aapproved by bbusiness) shoowing the bestt of St. Joseph buusinesses and/or businesss owners. Tell us what’s interesting aboout them. We’ ll feature them wwebsite and inn the City newwsletter’.Contact informati on the City on follows Action : This item is ooffered for youur informationn and input. Page 38 of 40 Date: ugust 2, 2013 A11 Memo To: Members of the EDA City Admiinistrator Weyyrens Memo From: CynthiaSSmith-Strack -- MDG, Inc. RE: BillboardProposition dd Backgroun: At the Septemmber meetingg the EDA disscussed an efffort wherein tthe EDA would secure billbboard square footagge either adjaacent to CSAHH 75 in St. Cloud or adjaceent to I-94 south/east of Stt. Joseph. Thenn a number oof businesses could subleaase space on the billboard. The sub-leassers could advertise around a sspecific eventt (e.g. Millstreeam Arts Festtival, Farmer’ss Market in Downtown, “Heritage Festtival”, etc.) orraround a cenntral advertising message (e.g. progressive sale, sidewallk sales, garaage sale weekkend, etc). The Board byy consensus requested addditional informmation regardding pricing annd availabilityy of billboards. Since the meeeting I have bbeen in contaact with repressentatives froom Lamar Advvertising and Franklin Outddoor Advertising. ddoor reports lease rates onn I-94 and Coounty 75 rangge from $395 - $1,095 per Franklin Out month depennding on size and location, type of billbooard program, length of contract, etc. Att this time Franklinn doesn’t havee any available space adjaacent to west bound I-94 beetween Clearrwater and Highwayy 23. Lamar reportts variable rattes as well. Those adjacennt to CSAH 755 range from $$500 to $20000 per month with oone time set-uup costs of $150 to $1,400.. Lamar doesn’t have any lease billboarrds available adjaacent to I-94 between Cleaarwater and HHighway 23 aas all are permmanently leased. oote, I met with Jim Degiovaanni from the FFarmer’s Marrket regardingg moving the event On a side n to the Downtaar. I mentioned billboard reental and he inndicated an innterest in sub own next ye- billboard for Faarmers Markeet, if approvedd by the Markket Executive leasing the Board. Action: This item is ffor your discussion and direection. Page 39 of 40 Date: October 116, 2013 Memo To: Members of the EDA City Admiinistrator Weyyrens Memo From: CynthiaSSmith-Strack -- MDG, Inc. RE: BusinessDevelopmennt Report ee updates on Business Development Prrojects over thhe past monthh: Following ar New lead interested in 600-8000 sf of lease sspace for proffessional servvice. New lead interestedd in purchasingg commercial property for retaail/service estabblishment tied tto . Wobeegon Trail Demmolition permitt issued for a portion of DBBL Building. Addittional outreacch to several property owners in the dowwntown undertaken. CEDDS project repdd to EDC7E. PProjects identss in past yearss: ort submitteified same a utilitillector street to Walz Propperty, and impprovements too the “Parkwaay es to I-94, co Businness Center”. TIF ((Job Stimuluss Program) reports to Statee Auditor’s Offfice. Met wwith Farmers aact and subseequently with nng moving of Market contstaff regardi Farmmer’s Market tto downtown in 2014. Page 40 of 40