HomeMy WebLinkAbout[07a] Annual Report-JkA�, w CITY OF ST. JOSEPH
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Date: January 15, 2014
Memo To: Members of the EDA
City Administrator Weyrens
Memo From: Cynthia Smith - Strack, MDG, Inc.
Administrator
Judy Weyrens RE: 2013 Annual Report
Mayor
Rick Schultz Background:
Please find attached the initial draft 2013 EDA Annual Report to Council. Although the
Councilors report has been completely reformatted, the report includes information typically presented
Steve Frank in the past:
Bob Loso
Renee Symanietz Executive summary,
Dale Wick
Request:
Review, comment on 2013 annual report, setting of goals for 2014, and consideration of
authorizing report submittal to the City Council are kindly requested.
• A break out of hours to each of the five core functions of typical EDA programs,
EDA
Doug Danielson
. Updates on projects, and
Steve Frank
Gary Osberg
. Potential goals for this year.
Larry Hosch
Dale Wick
Request:
Review, comment on 2013 annual report, setting of goals for 2014, and consideration of
authorizing report submittal to the City Council are kindly requested.
o .. ,•i,h rom
CITY OF ST. JOSEPH
EDA Annual Report
2013
St. Joseph Economic Development Authority
City of St. Joseph — 25 College Avenue North
T: (320)363 -7201
a
CITY OF ST. JOSEPH EDA Annual Report 1 2
Executive Summary
This report documents the EDA's activities over the previous year and the EDA's progress toward the creation of new
wealth, `setting the table' for new business opportunities, providing assistance to businesses to spur economic investment
andjob creation locally, and to conduct outreach to business contacts. In summary:
The St. Joseph EDA as a driving force for economic development pursues four core functions: organizational
development, business development, market development, and infrastructure development.
Organizational development efforts focus on maintaining and enhancing the capacity of the EDA as a body
politic. Business development activities are strategies implemented to retain and attract business. Market
development efforts are outreach actions including but not limited to website maintenance, production of
marketing materials, and participation in local and regional events /establishments. Infrastructure development
activities strive to `set the table' for economic development including the creation of shovel ready commercial and
industrial lots.
The EDA met a total of twelve times in 201.3. The regularly scheduled meeting date is the fourth Wednesday of
each month at 5 p.m. Meetings are held in the lower level conference room at St. Joseph City Hall. The meetings
are open to the public.
The EDA employs a variety of metrics to gauge progress and efficacy. Continued progress to enhance the
commercial /industrial portion of the City's total value, thereby diversifying the tax base, providing employment
opportunities, and addressing the needs of the community is evident. Total business new construction value
added since 2000 is nearly $42million.
The percentage of the City's market and tax capacity values related to commercial and industrial property
continues to increase on an annual basis.
The St. Cloud Metropolitan Area continues to recover from highs charted during the Great Recession; however
the recovery pace is more measured in the St. Cloud MSA than elsewhere.
Sales and use data for the City of St. Joseph over the previous several years illustrates continued gains in
economic progress and activity. Gross and taxable sales continue to increase and trend positive. Gross sales
across all industry sectors in St. Joseph in 2013. (latest available data) totaled $110,356,58o; taxable sales increased
five percent over 2010 to $23,805,o66.
Twelve (12) new projects arose in 201.3; follow up with sixteen (1.6) projects from previous years occurred. Of the
twenty -eight (28) leads, nine (9) moved forward, sixteen (1.6) are stable /on- going, and three (3) ultimately moved
elsewhere (one) or were abandoned for lack of financing (two).
Goals for 201.4 include:
Extension of sanitary sewer to 1- 94 /CSAH 2
Market outreach
Downtown revitalization
Respond to inquiries and pursue viable leads
Implement and administer technical and financial assistance programs
Other
)d
CITY OF ST. JOSEPH EDA Annual Report 13
CONTENTS
Executive Summary 2
Mission 4
Core Functions 4
2013 Activity by Core Function 5
2013 Meetings 5
Metrics 6
Historical Building Permit Values: Commercial & Industrial 6
Historical Market Value and Tax Capacity Composition 6
Unemployment 7
Employment and Wages 7
Historical Housing Starts 8
Historical Sales and Use Data 8
Projects 9
Business Contacts: Technical Assistance, Coordination, and Financial Assistance 9
Goals 11
a.�
CITY OF ST. JOSEPH
Mission
EDA Annual Report 14
The St. Joseph EDA provides a professional municipal economic development program that assists industrial and
commercial development activities which minimize impacts to the environment, transportation system, municipal
water /sewer use, and financial resources for the City of St. Joseph.
Core Functions
The St. Joseph EDA as a driving force for economic development pursues four core functions: organizational development,
business development, market development, and infrastructure development.
Organizational development efforts focus on maintaining and enhancing the capacity of the EDA as a body
politic. Resources allocated to this core function are associated with meeting attendance, meeting packet
preparation, drafting meeting minutes, annual report preparation, goal setting /administration, and budget
development /administration.
Business development activities are strategies implemented to retain and attract business. Activities included in
this core function are related to: business retention /expansion efforts; Downtown revitalization; meetings,
research, and information sharing to /with qualified project contacts and representatives; and, administration of
technical /financial assistance.
Market development efforts are outreach actions including but not limited to website maintenance, production of
marketing materials, and participation in local and regional events /establishments.
Infrastructure development activities strive to 'set the table' for economic development. Activities included with
this core function are efforts toward the creation of shovel ready commercial and industrial lots.
Business Market
Development Development
Organizational Infrastructure
Development Development
CITY OF ST. JOSEPH
2o13 Activity by Core Function
Resource Allocation by Core Function
• Organizational Development ❑ Business Development
• Market Development ❑ Infrastructure Development
2013 Meetings
The EDA met a total of twelve times in 2013. The regularly scheduled meeting
date is the fourth Wednesday of each month at 5 p.m. Meetings are held in
the lower level conference room at St. Joseph City Hall. The meetings are
open to the public.
2013 OFFICERS
BOARD MEMBER NAME TERM EXPIRES
CHAIRPERSON
Dale Wick
Coterminous with Council Term
VICE CHAIRPERSON
Doug Danielson
2017
TREASURER
Larry Hosch
2o18
AT LARGE
Gary Osberg
2019
AT LARGE
Steve Frank
Coterminous with Council Term
5
EDA Annual Report 15
ACTIVITIES 2013 VS. 2012
V ORGANIZATIONAL DEVELOPMENT
2013 =19°x6 vs. 2012 = 26%
A BUSINESS DEVELOPMENT
2013 = 63% vs. 2012 = 62%
Ak MARKET DEVELOPMENT
2013 = 18% VS. 2012 =11%
H INFRASTRUCTURE DEVELOPMENT
No change
CORE FUNCTION ALLOCATION
2013 -2012
63.o 62.o
2013 2012
■ ORGANIZATIONAL DEVELOPMENT
BUSINESS DEVELOPMENT
MARKET DEVELOPMENT
■INFRASTRUCTURE DEVELOPMENT
CITY OF ST. JOSEPH
Metrics
EDA Annual Report 16
The EDA employs a variety of metrics to gauge progress and efficacy. The following information illustrates continued
progress to enhance the commercial /industrial portion of the City's total value, thereby diversifying the tax base, providing
employment opportunities, and addressing the needs of the community. Total value added since 2000 is nearly $42million.
Historical Building Permit Values: Commercial & Industrial
YEAR
VALUE
2013
$2,371600
2012
$3,6o1,549
2011
$5,392,599
2010
$ 307,378
2009
$7,216,910
2oo8
$3,69o,877
2007
$3,376,221
2oo6
$1,259,957
2005
$2,790,177
2004
$2,7o8,838
2003
$3,461,695
2002
$4,678,430
2001
$ 593,000
2000
$ 361,500
New Commercial Construction Value
;,8,000,000
;.7,000,000
$6,000,000
C,5,000,000
`y4,000,000
$ 3,000,000
X2,000,000
$1.000.000
$0
M N 4 0 M p N 0 0 q m N sal 0
.-4 It N a4 O O O O O O b O O O
O O O 0 O O 0 O O O O O O O
N N N " N N N N N N N N N N
Historical Market Value and Tax Capacity Composition
V VALUE
The percentage of the City's market and tax capacity values related to commercial and industrial property continued to
increase in 2013. The market and tax capacity composition statistics do not include the approximately forty -two (42)
percent of value attributed to non - property tax paying entities.
COMPOSITION
CATEGORY
2013
2012
2011
2010
2009
2oo8
Total Market Value
27o,691,487
281,905,313
319,772,893
329,203,827
330,154,o87
327,386,247
Homestead Residential
5936%
58.58%
62.56%
63.61%
63.470/0
63.77%
MARKET VALUE
Non - Homestead Residential
15.52%
16.48%
14.62%
14.75%
16.8o%
16.91%
COMPOSITION
Farm
2.95%
3.14%
3.19%
3.44%
3.02%
2.78%
Commercial /Industrial
20.79%
20.46%
18.58%
17.14%
15.65%
15.51%
Other
1.39%
1.34%
1.05%
1.o6%
1.05%
1.04%
Total Tax Capacity
3,249,611
3,380,793
3,771,137
3,8371441
3,799,530
3,762,117
Homestead Residential
49330/0
4873%
5296%
5448%
5507%
5544%
TAX CAPACITY
Non - Homestead Residential
3.4-340/6
15.21°x6
13.67%
13.90%
15.8o%
15.93016
COMPOSITION
Farm
2.42%
2.62%
2.71%
2.95%
2.63%
2.42%
Commercial/industrial
31.86%
31.46%
29.12%
27.09%
24.92%
24.71%
Other
2.05%
1.98%
1.55%
1.57%
1.58%
1.49%
Z6
CITY OF ST. JOSEPH
Unemployment
EDA Annual Report 17
Illustrated below is a comparison of historical unemployment in metropolitan areas in Minnesota (excluding Duluth). The
St. Cloud Metropolitan Area continues to recover from highs charted during the Great Recession, however the recovery is
pace is more measured in the St. Cloud MSA than elsewhere.
Unemployment rates are delayed economic indicators which confirm what has occurred and they are counter - cyclical
meaning that the lower the rate the better the economy.
YEAR
ST. CLOUD MSA
ROCHESTER MSA
MSP MSA
MANKATO MSA
2007 Annual Average
4.7
4.0
4.3
3.8
2008 Annual Average
5.6
4.5
5.1
4.3
2009 Annual Average
8.2
6.7
7.9
6.6
2oio Annual Average
7.4
6.1
7.2
6.1
2021 Annual Average
6.5
5.4
6.4
5.3
2022 Annual Average
5.6
4.7
5.5
4.8
2013 YTD Average
5.4
4.5
5.0
4.3
Employment and Wages
Historical Jobs, Establishments, and Wages
Jobs (Annual Average)
2500
2000
YEAR
JOBS
ESTABLISHMENTS
AVG. WKLY WAGE
2012
1,902
130
$680
2011
1,723
122
$657
2010
1,703
127
$646
2009
1,577
1,578
127
130
$644
$631
2008
Jobs (Annual Average)
2500
2000
1500
1000
_
. .
--
-
- -
500
-
a
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
7
CITY OF ST. JOSEPH
Historical Housing Starts
EDA Annual Report 18
New home construction in St. Joseph peaked in 20o5 and has decreased significantly thereafter. The rapid decrease is of
course indicative of the Great Recession and housing decline.
YEAR
NUMBER
2013
6
2012
8
180
2011
13
160
140
2010
5
120
2009
12
2oo8
7
1so
O
2007
24
60
2oo6
77
40
2005
156
20
2004
78
0
2003
112
Historical Sales and Use Data
NEW HOMES
m N .i O M CO h b l!1 M
0 0 0 0 0 0 o O 0 0 0
N N N N N N N N N N N
u NEW HOMES
Sales and use data for the City of St. Joseph over the previous several years illustrates continued gains in economic
progress and activity. Gross and taxable sales continue to increase and trend positive. Gross sales across all industry
sectors in St. Joseph in 2013. (latest available data) totaled $110,356,58o; taxable sales increased five percent over 2010 to
$23,8o5,o66.
$110,000,000
$105,000,000
$100,000,000
$95.000,000
$90,000,000
$85,000,000
$80,000,000
$75,000,000
$70,000,000
2005
2006 2007 2008 2009 2010 2011
Gross Sales Linear (Gross Sales)
CITY OF ST. IOSEPH
Projects
EDA Annual Report 19
The EDA and staff continued to interact with several qualified business prospects which emerged in 2013 or were carried
over from previous years. Following is a summary of various contact activities within 20123. Businesses have been
identified with a project number to protect the confidentiality of the company.
Business Contacts: Technical Assistance, Coordination, and Financial Assistance
PROJECT CODE
STATUS DESCRIPTION OF ACTIVITY
Project 03 -A
Large commercial or mixed use development at new CSAH 2 /Hwy 75•
Numerous interactions regarding extension of sanitary sewer to site.
Several acres of industrial property previously the subject of platting and
Project 04 -S
J _� improvement design. Remain in regular contact with bank that now owns
the property. Distributed property information to three different leads in
2013.
Project o5 -A
Former feed mill. Last spoke with property owner in November. Distributed
-' information to two leads this year.
Involves development of property at new CSAH2 /3 and Hwy 75. Remain in
Project o6 -H
touch with property owner /developer. Need to extend sewer and water to
make development possible. No plans for such as of yet.
Project o6 -1
Construction underway (Army Reserve Center). Completion expected in
2014.
Project 07 -J
Large commercial or mixed use development at new CSAH 2 /Hwy 75•
Numerous interactions regarding extension of sanitary sewer to site.
Project o8 -A
Targeted /special need residential development in close proximity to
Downtown. Construction underway.
Project o8 -C
Property owner in downtown had on several occasions expressed interest in
demolition and reconstruction. Project on hold at this time.
Project o8 -F
Expansion of this industrial property was completed in 2013.
Project 10 -I Property adjacent to CSAH 75/ CR 133. Real estate agents changed in
October of 2013 brining updated sales presence and frequent discussion.
Project 11 -L Project involves a vacant building in the industrial park. Three separate leads
were forwarded to the property owner in 2013. No successful outcome.
Project 11 -M Involves the presence of a financial institution in the City. Project remains in
planning phase, perhaps for 2015.
CITY OF ST. JOSEPH EDA Annual Report I io
PROJECT CODE STATUS DESCRIPTION OF ACTIVITY
Project involves a cutting edge technology. Executed two separate purchase
Project i� -E
agreements for an industrial property in 2013. The entity owner the property
has no longer agreed to purchase agreements as they have not been
executed. Project stalled, funding issues.
Project 1z F
!
Business opened in 2012 in Indian Hills owner now looking for expansion
space for the business.
If suitable space is located this business owner would like to consolidate
Project 12 -1
business holdings into one location in St. Joseph. Very specific criteria for lot
and location have this project on hold at this time.
Project 12 -K
_ -•'
Involves potential relocation of a regularly reoccurring event to the
Downtown area. Discussion is ongoing.
This lead seriously examined two individual industrial locations in the City.
Project 13 -A
J'"
Ultimately located in Waite Park due to building pricing. Active
correspondence throughout the winter /spring /summer TIF numbers
generated after review of building plans by County Assessor.
Project 13 -B
Retail Therapy opened in the fall. Assisted with business location, lease, and
BFA grant.
Project 13 -C
�'� .
Finkens Water purchased the former DBL building this fall. Demolition and
reconstruction currently underway.
This is a national retailer, publicly traded company the EDA Director
Project 13 -D
reached out to. Have repeatedly visited the City looking for a vacant parcel
that meets their needs and budget.
Project involves the repurposing of an existing use to a viable future use.
Project 13 -E
-
Latest proposition was long -stay hotel. Repurposing of building is
problematic at this time.
Project 13 F
Project relates to hospitality /leisure establishment. Too early to determine
viability.
Project 13 G
This is a current home business that may be seeking commercial or
industrial space. Too early to determine viability.
Project 13 H
Lead is evaluating a business tied to the Wobegon Trail. Provided several
items of information as requested. Too early to determine viability.
Project 13 -1
Lead is seeking space for a service business in the downtown. Followed up
on several occasions with information. Too early to determine viability.
Project 13 J
Existing business looking to expand in St. Joseph. Met on numerous
occasions and continue to do so.
Project 13 K
Business owner willing to relocate to a more suitable location. Have toured
potential site. Doesn't wish to incur additional debt.
Project 13 L
Existing business sensitive discussion is ongoing. Providing technical
assistance as requested.
3v
EXTEND SANITARY SEWER TO 1- 94 /CSAH 2
Progress: Capcity study, initial design; and' —„
meetings with property owners occurred. 10
Up next: Developers must decide to go
ahead with project.
MARKET OUTREACH
Progress: Real estate round table held, 'Best
Neighbor' and 'Best Business' program launch.
Up next: Regular real estate round tables,
website design /use, and business outreach.
DOWNTOWN REVITALIZATION
Progress: This fall there is a shortage of commercial
space in the downtown.
Up next: Focus on one or two commercial lots and
actively pursue revitalization resulting in additional
commercial space.
RESPONDTO INQUIRIES, PURSUE VIABLE LEADS
Progress: Eleven new substantial leads generated WM
One ultimately located external to City. Three moved
forward with projects. Several too early to tell.
Up next: Convert at least two additional leads generated
in 201-3 into successful projects in St. Joseph in 2014.
IMPLEMENT /ADMINISTER TECHNICAL /FINANCIAL
ASSISTANCE PROGRAMS
Progress: TIF and abatement projection analysis
completed for two prospects in 2013. Numerous
occurances of assistance /incentive promotion.
Up next: Utilize funds remaining in the "Demolition
Grant Program" to foster redevelopment.
NEW GOALS FOR 2014