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HomeMy WebLinkAbout2014 [01] Jan 22 CITY OF ST.JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday January 22, 2014 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch, and Gary Osberg. Absent: Dale Wick. Also present: Nasir Raja the Executive Vice President of Franchise Development & Operations Americlnn, Ross Detert, Steve Anderson representing Franklin Outdoor Advertising, Chad Hess from the Central Minnesota Credit Union, Travis Moore from the Central Minnesota Credit Union, St. Joseph Resident Michael McDonald, City Administrator Judy Weyrens, and EDA Director Cynthia Smith-Strack. Call to Order. Vice Chairperson Danielson called the January 22, 2014 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Vice Chair Danielson introduced the agenda. Motion by Osberg, second by Hosch to approve the agenda with request by Danielson to move item 7(c) to immediately follow agenda item number 3, and to add agenda item 4(c) — Election of Officers to the agenda. Motion carried 4-0. Public Comment. St. Joseph resident Michael McDonald commented on the EDA annual report noting it was complete, but requesting names be attached project updates instead of just project coding. Guests. Vice Chair Danielson introduced Nasir Raja Americlnn Executive Vice President of Franchise Development and Operations. Strack noted Raja had prepared materials that describe in general terms criteria needed for the siting of hotels and background information on Americlnn. Strack noted that an individual potentially interested in a hotel franchise was in attendance as well. Raja distributed an information binder related to a hotel franchise opportunity for a location in St. Joseph. Raja identified the following steps to be taken prior to any commitment by Americlnn to a franchise in St. Joseph: (1) identify a potential location/site; (2) analyze fit with Americlnn brand; (3)conduct feasibility study; (4) host stakeholder conference. Raja noted a location in St. Joseph and fit with brand steps had been completed. Americlnn feels St. Joseph is a good fit for the brand and internal demand generators including CSB and SJU. Frank noted the Army Reserve training center could generate demand as well. Raja agreed and then referenced a publication in September 2013 in Lodging Magazine entitled "Back to School: Why College Towns Mean Big Business for Hotels". Raja next stated Americlnn is not allowed to participate in feasibility studies from a corporate perspective. Any potential franchisee is required to solicit a feasibility study independently under franchise regulations. Raja noted Americlnn is a brand owned by Northcott Hospitality which also manages other brands including: Houlihan's and Perkins restaurants. Americlnn has franchise 202 chain locations in 24 different states, most with multiple locations, including 67 in Minnesota alone. He stated Americlnn has developed a new building prototype which features three stories and a roof line that can be converted to anything from pitched, mansard, or flat. Raja stated Americlnn's market position is primarily as a mid-scale hotel brand with a typical guest mix is 60% leisure and 40% business travel. January 22, 2014 EDA Meeting Page 1 Osberg inquired as to whether Americlnn would bring a franchise location to St. Joseph. Raja responded that Americlnn works with investors but is not a potential owner of a hotel. Strack asked whether Americlnn would consider the perceived needs of CSB and SJU when pursuing facility planning with investors. Raja noted the presence of CSB and SJU were likely significant demand generators for any mid-scale hotel proposed for St. Joseph, as such he stated it would be advantageous to cater to the interests of demand generators. Danielson inquired as to project cost. Raja noted typical estimates are$75,000 per room to build. Hosch asked if anyone representing Americlnn had reached out to property owners. Raja said he had not and that would not be something in which the brand would typically be involved. Strack noted she had reached out to the property owners, both Walz Properties, LLC and GTI. Both had interest in a hotel project but had not taken any steps to develop at this time. Frank stated he was skeptical about moving forward with any feasibility study without a potential partner. Hosch concurred. Strack noted a member of the audience who was interested in a franchise location in St. Joseph was willing to partner with the EDA to conduct a study. Frank stated he has stayed at various Americlnn locations over the previous years and found them to be satisfactory. He opined accommodations and amenities were as expected and internet access was available and included in the room price. He stated some luxury hotels are no longer providing internet access. Raja noted Americlnn, like most mid-scale brands, offered free, fast internet service and a free breakfast as part of their operational model. He also noted Americlnn has a loyalty program that is popular. Strack inquired as to the typical level of financial assistance requested of local communities in conjunction with a hotel project. Raja noted 100% of project receive some sort of financial assistance, either TIF or abatement. Strack inquired as to typical percentage of the total project cost. Raja noted he would research and provide information as a follow-up to meeting discussion. Strack next inquired as to willingness of franchise to vary typical exterior materials and/or amenities so as to meet with 'gateway' intent of the 1-94 corridor. Raja noted franchise architecture standards lower construction costs, but investor would likely be willing to consider alternatives as long as it didn't negatively impact the project cost. Weyrens asked Raja if Americlnn has ever worked with a public entity to design complementary facilities, such as an active recreation center, in conjunction with lodging. Raja noted that was not standard practice but could be an interesting consideration. The EDA thanks Raja for presenting information and responding to questions. Signs. Vice Chair Danielson introduced the agenda item. Strack stated as a result of a joint City Council, Planning Commission, and EDA meeting City Administrator Weyrens was requesting further input from the EDA regarding nature of signage in the B-3 "Gateway" district. Specifically, the EDA is asked to comment on their vision for signage in the I-94/CSAH 2 area as opposed to commenting on individual sign standards. Strack requested that given what the EDA individually and collectively as a group infer to be the character of St. Joseph, how much emphasis should be placed on the following functions of signs: 1. Needs of businesses to identify themselves and attract customers; 2. Needs of citizens to be able to locate a business and find a desired product/service; January 22, 2014 EDA Meeting Page 2 3. Needs of a community to create or preserve a visual environment that is in keeping with the type of built environment desired by citizens and businesses. Frank stated he understood the result of the joint meeting was that there is a desire to disallow billboards in the City limits. He didn't recall specific discussion about sign standards for the 1-94 corridor. Strack noted the requested discussion was soley related to the nature of signage in the 'gateway' district. The joint meeting established overall goals, the perceived type of signage in the downtown i.e. pedestrian friendly, humanscale was known, and the perceived type of signage applicable to the Highway 75 district was known. What wasn't clearly understood was the nature of signage in the 1-94 corridor. Specifically, does the EDA feel signs standards in general should balance the need for companies to advertise and/or the desire to minimize 'visual pollution' in a gateway area or should one need dominate the other. Osberg suggested using Sartell's language. Strack noted discussion requested was a 30,000 foot level, not specific standards. In addition she opined St. Joseph's character was unique and independent of that of Sartell. St. Joseph's populace was well educated, culturally sophisticated, and higher income. McDonald opined EDA members should support business efforts to use signage for self promotion at least as much as a desire to curtail potential visual clutter. Frank noted his vision for the gateway corridor included unified and generous landscaping, high quality buildings, and comprehensive development. Hosch stated it was difficult to understand what was being asked. In general he stated a preference for special signage requirements that complimented a 'gateway' corridor or special entry into the community. Danielson stated a preference for providing for business needs as well. Input from Steve Anderson with Franklin Outdoor Advertising was solicited. Anderson noted billboards provided property tax revenue and helped property owners achieve a return on commercial property. The EDA thanked Anderson for attending the meeting. Election of Officers. Danielson introduced the agenda item. Frank stated he had no interest in holding an office. Motion Osberg to re-nominate officers from 2013 as follows: Chair Wick, Vice Chair Danielson, Treasurer Hosch. Motion seconded by Frank. No other nominations were received. Motion carried 4:0. Approval of Minutes. Vice Chairperson Danielson introduced the minutes from the December 18, 2013 regular EDA meeting. Motion by Osberg, Second Frank to approve the December 18, 2013 minutes as presented. Motion carried 4-0. Accounts Payable and Monthly Report. Danielson introduced the agenda items noting accounts payable and presence of financial reports. Motion by Osberg, Seconded by Frank to approve the accounts payable and financial reports as presented. Motion carried 4-0. EDA Annual Report to Council. Vice Chair Danielson introduced the agenda item. Strack noted each year the EDA is required to provide a summary of activities undertaken throughout the previous year. She noted a draft annual report for January 22, 2014 EDA Meeting Page 3 2013 was included in the meeting packet. Strack had reformatted the report from previous years but it contained similar information. She provided an overview of the report including: 2013 activities by core function; 2013 EDA meetings; metrics to gauge progress toward mission; project updates; and proposed goals for 2014. The Board spoke favorably of the report and embraced proposed goals for 2014. By consensus members agreed to contemplate additional goals and committed to bringing them back to the February EDA meeting in the event they felt additional goals were warranted. Motion Hosch, second Frank to approve 2013 EDA Annual Report to the City Council and authorize submittal of the report to the Council with the caveat additional goals could be added. Motion carried 4:0. Housing Incentive Program. Danielson introduced the agenda item. Hosch stated he needed to leave the meeting by 6:30. The EDA agreed significant discussion on the topic was needed. Hosch requested additional information about the efficacy of similar programs in other small towns, including how long incentives have been in place and what results have been. EDA arrived at consensus additional discussion was needed and time did not appear adequate at the current meeting. Weyrens suggested the item should be discussed sooner rather than later so as to capitalize on this year's construction season. Strack suggested a special meeting or formation of sub- committee to review/advise the Council on the issue. Motion Hosch, Second Frank to move the regularly scheduled EDA meeting from February 26th to February 12th Motion carried 4:0. Motion Osberg, Second Frank to postpone discussion to an EDA meeting on February 12, 2014. The meeting would take the place of the February 26"'meeting. Motion carried 4:0. Farmers Market. Danielson introduced the agenda item. Strack stated he had a conversation with the Farmers Market Board liaison who expressed continued interest in moving the Farmers Market to the Downtown this year. They were requesting authorization from the City Council to use the 100 block of East Main Street for the weekly event. Strack noted she spoke with Father Tupa earlier in the day who stated the Farmers Market could use their parking lot as well. Strack had not spoken directly with a representative from Bello Cucina but she had received favorable response from other persons downtown. The EDA reached consensus in seeking input from the owner of Bello Cucina. The recommend the City Council support moving the Market downtown, but do not wish to provide a recommended location at this time. Hosch exited the meeting at 6:35 p.m. Best Neighbor Recognition. Danielson introduced the agenda item. Motion Osberg, Second Frank to postpone discussion on this item until the next meeting. Motion carried 3:0. Business Development Report. The report was acknowledged. Board Member Announcements. Frank inquired as to the status of an internship program. Strack noted she had developed internship guidelines but was awaiting inclusion of the paid position in the EDA budget. Weyrens confirmed the January 22, 2014 EDA Meeting Page 4 requested $4,000 was included in the 2014 budget. Strack noted she would add the internship position to the next EDA agenda. Adjournment. Motion by Frank, Seconded by Osberg to adjourn the EDA meeting at 6:40 pm. Motion carried 3-0. At Cynthia Smith-Strack January 22, 2014 EDA Meeting Page 5 THIS PAGE INTENTIONALLY LEFT BLANK