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HomeMy WebLinkAbout2013 [09] Sep 25CITY 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 1 -94. The RFP includes a disclaimer allowing the City /EDA to accept or reject any /all proposals. The RFP reflects a submission deadline of September 27th. It also provides for the formation of a 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. September 25, 2013 EDA Meeting Page 1 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 $1 M. 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. Strack stated she had spoken with a representative for the property at 33 1St Ave NW who indicated the 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, September 25, 2013 EDA Meeting Page 2 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 1 -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 1 -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 1 -94. BFA Grant Disbursement. September 25, 2013 EDA Meeting Page 3 Page 4 of 40 Strack apologized for an oversight but requested the EDA consider adding discussion regarding reimbursement for Business Fagade 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. "X Cynthia Smith - Strack September 25, 2013 EDA Meeting Page 4 Page 5 of 40