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HomeMy WebLinkAbout2014 [02] Feb 12 CITY OF ST.JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday February 12,2014 Present: Board Members Doug Danielson, Steve Frank, Gary Osberg, and Dale Wick. Absent: Larry Hosch. Also present: Joe Walz representing Walz Properties, LLC, Ross Detert, Mayor Rick Schultz, City Administrator Judy Weyrens, and EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the February 12, 2014 meeting of the St. Joseph EDA to order at 5:05 p.m. Agenda. Wick introduced the agenda. Motion by Frank, second by Osberg to approve as presented. Motion carried 4-0. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the January 22, 2014 regular EDA meeting. Frank noted a needed correction on Page One of the minutes relating to the Army Reserve training facility being mentioned by himself as a demand generator for a hotel. Motion by Frank, Second Osberg to approve the January 22, 2014 minutes with the correction as noted by Frank. Motion carried 3-0 with Wick abstaining as he was not present at the January 22nd meeting. Accounts Payable and Monthly Report. Chair Wick introduced the agenda items noting accounts payable and presence of financial reports. Frank inquired as to whether or not there were any notations on the reports. Strack mentioned the report numbers were unaudited. Frank requested clarification as to meaning of unaudited for the sake of newer EDA members. Strack noted City required to have an independent audit on annual basis. Typically audit completed in early Spring, most often some adjustments are needed. Frank inquired as to whether the adjustments were substantial or not. Strack noted adjustments were minor typically. Motion by Frank, Seconded by Wick to approve the accounts payable and financial reports as presented. Motion carried 4-0, EDA Director Contract. Chairperson Wick introduced the agenda item. Strack thanked the EDA for being able to work closely with the organization over the previous 13 years. She expressed an interest in continuing to serve as the consulting EDA Director. She noted the current annual contract amount has remained fixed since 2009 at a rate of$2,200/month. She offered to provide a two year contract versus a one year contract. The proposed rate was $2,500/month and would be guaranteed for two years. All other terms of the initial contract would remain as is, including a 30-day out-clause for either party. Wick inquired as to when the City last solicited proposals from other economic development consultants. Strack verified RFP solicitation and consultant selection was completed in 2012. The process resulted in her re-selection as consulting EDA Director. February 12, 2014 EDA Meeting Page 1 Frank complimented MDG, Inc. and Joanne Foust's ability to fill for Strack when personal time off was needed. Wick noted the EDA has the authority to hire consulting staff. Motion Wick, Second Danielson to approved two-year contract with MDG. Motion carried 4:0. Hotel Feasibility Study. Wick introduced the agenda item and alluded to materials in the packet related to study proposals. Strack mentioned an investor is willing to split the study cost 50/50 with the EDA provided two reports are developed. One would include information of general interest to EDA, the other would include a detailed financial and market positioning analysis which would include proprietary information and be available only to investors. In the 'unlikely event' (investor's language) a project doesn't result the confidential study would be available for purchase by another investor. The investor would like to initiate construction of a hotel this summer(2014). Strack contacted both companies who submitted proposals for a study. Each indicates an approximate month-long process. Costs under both are comparable. Strack noted the investor preferred the LHR proposal. Strack noted the EDA had previously extended an offer to GTI and Walz Properties, LLC to assist with costs associated with preliminary plat development. The offer was, in part, contingent upon submittal of a preliminary plat which had not yet occurred. The offer also included participation in a Master Plan for the area which was developed in 2010. The remaining offer amounted to $2,000. Strack reasoned the EDA could rescind the offer and put the $2,000 toward their share of the hotel study. The remaining funds would be drawn from the business development project fund. Frank noted he initially opposed the EDA shouldering the cost of a study without participation by other entities. He was now able to reconsider as a committed investor/participant had come forward. Osberg voiced support for the study as he had in the past. Danielson inquired as to whether the College of St. Benedict had been approached regarding helping to fund the study. Strack stated she had not requested participation by CSB. Motion Osberg, Second Frank to approve participation in a hotel feasibility study of up to $5,200. Motion carried 4:0. Motion Danielson, Second Wick to rescind the remaining$2,000 of an offer to participate in cost-sharing related to preliminary platting of the GTl/Walz property. Motion carried 4:0. Housing Incentive Program. Chair Wick introduced the agenda item. Strack provided an overview of the information contained in the EDA packet including information from other cities regarding the efficacy of housing incentive programs. She also provided a number of items for EDA consideration regarding the nature of a potential program. Danielson asked about a need to establish a public purpose for the program. Wick inquired as to how such an incentive project could be funded. Weyrens talked about a residual balance existing in an assessment bond fund related to the former Arcon development. The residual balance was due to penalties imposed when assessment payments were missed. Weyrens also noted she had spoke with a local developer/owner of vacant lots within the City of St. Joseph. In his opinion a$5,000 incentive could generate new housing starts, especially if it was rolled out prior to or conjunction with the Parade of Homes event. Such an incentive could be used to help offset part of water and sanitary sewer connection fees associated with new home development. February 12, 2014 EDA Meeting Page 2 Danielson inquired as to how many new home constructions could be assisted. He noted Clearwater was offering to assist the first three homes but he thought that was too few. Weyrens suggested ten homes could likely be assisted. The EDA discussed to whom the incentive should be targeted. Consensus is that any such incentive would need to be directed to the end-user or occupant of the new home as opposed to a land developer or spec home builder. Danielson asked about the actual cost of WAC/SAC versus that which was charged. Weyrens noted the City established the connection fee rates in conjunction with actual costs associated with improvements, most notably the water treatment facility. She further stated the City had conducted an apples-to-apples investigation of fees with other St. Cloud MSA cities a few years ago. All fees were remarkably comparable. Danielson asked about the level of return on new home construction. Frank noted that, depending on who you asked, most would say a property value of at least$300,000 is needed to cover the cost of providing municipal services to residential units. Other may say residential development always demands more in services than what is returned in taxes paid. Osberg voiced support for a housing incentive program. Frank inquired as to whether income requirements or qualifications could be considered. Consensus of the EDA was such requirements could further complicate the program. Strack inquired of Weyrens whether or not the residual fund balance could be put toward other projects such as extension of utilities to 1-94. Weyrens stated residual funds could assist with utility extension to I- 94. Weyrens suggested the program, if authorized by the Council, be limited to the calendar year 2014 and only to new home permits issues prior to November 1, 2014. This would prevent people from seeking permits just to hold them over for some time in the future. The EDA agreed. Motion Osberg, Second Danielson to recommend the City Council consider a new home incentive program involving an incentive of$5,000 per home up to a maximum of 15 homes. Motion carried 4-0. Wick exited the meeting at 6:03 p.m. Best Neighbor Recognition. Vice Chair Danielson introduced the agenda topic. Strack explained that at the December meeting the Board postponed discussion on this program to the January meeting; at the January meeting the Board postponed discussion to the February meeting. The EDA had reviewed several potential market outreach efforts in 2013, one of them was a 'best neighbor' recognition program. The goal of the marketing strategy was to grow community spirit and put a `face' to the community. Osberg opined the concept of a `best neighbor' didn't have anything to do with economic development. Frank noted it was not a high priority for him. Frank suggested recognition in newsletter would be sufficient coverage. Weyrens noted this was completed earlier this year. Consensus to await any additional nominations for best neighbor. February 12, 2014 EDA Meeting Page 3 Intern Program. Vice Chair Danielson introduced the agenda item. Strack reminded Board Members that during the 2014 budget process the EDA included $4,000 in wages for a potential intern. The intern item is included in the approved budget for 2014. To initiate discussion Strack suggested the EDA consider: what staff members would be training, supervising, and mentoring an intern; How much of a time commitment hosting the intern would entail; what specific tasks would/could be completed by an intern; physical resources needed to support an intern i.e. desk, computer, Internet access; and, pay level. Strack referenced an attached position profile she had drafted as a tool for defining the position. Danielson commented that he hoped the EDA wasn't creating a need for an intern but rather responding to a need for an intern. Frank noted he had worked with a number of interns programs in the past and it was he who suggested an intern program. He suggested an intern working with the EDA could be assign planning duties, much like one working toward an accounting degree could work with Lori Bartlett or Judy Weyrens. Osberg noted a marketing major could market the City. Strack opined an intern could assist with moving the farmer's market to the downtown or study and report best practices for active aging in place to the EDA. She stated her concern was for who would be supervising and mentoring the intern as she held office hours one day per week. Danielson inquired as to whether there was physical space for an intern in the City Offices, especially if they were to be relocated during construction of a replacement government center. Frank stated an intern's major would need to be consistent with activities conducted on site. He stated the amount of time on site would likely be related to the number of credit hours the internship provided. He opined more than three credit hours would correspond with more hours of work. Frank stated intern supervision should not only be occurring at the work site but it should also be occurring on campus on a regular basis with a department head. Osberg stated he has an intern and received no support from department staff at CSB. Danielson commented the EDA needed to define tasks for an intern to complete as a means of determining whether or not an internship would be productive not only for the student but for the EDA or City as well. Frank stated that the internship liaison at CSB/SJU should be requiring goal statements be designed prior to an intern starting an internship and that there should be weekly follow-up. Danielson suggested the EDA identify tasks for the intern to undertake. Mayor Schultz suggested Strack identify potential gaps for an intern to fill. Frank stated the internship could be opened up to any college although he originally thought an intern from CSB or SJU would be a nice fit. Schultz suggested identifying gaps and determining whether or not a need for an intern exists. Danielson noted he was a bit uneasy about the prospect of an intern getting 'lost in the shuffle' verses the internship being productive for both the intern and the City/EDA. Strack restated her concern for how long the intern would need to be on site on a weekly basis as she had office hours one day per week. February 12, 2014 EDA Meeting Page 4 Frank noted often times SCSU interns are directed to keep a weekly log of activities while not directly being in a certain place at a certain time. He stated there was a fair amount of flexibility where interns were concerned. By consensus Strack was instructed to bring a list of potential tasks for an intern to the EDA for consideration at the March meeting. The EDA would then decide how to find the right intern or if it could be completed. Strack inquired of Frank whether or not an SCSU communications major could be used to create a promotional video for the EDA. Frank concurred it was possible. Business Development Report. The report was acknowledged. Board Member Announcements. Frank stated Weyrens would be providing an update on the Small Cities Development Grant Program that was currently being administered in St. Joseph. Adjournment. Motion by Osberg, Seconded by Frank to adjourn the EDA meeting at 6:23 p.m. Motion carried 3-0. ynt i Smith- track February 12, 2014 EDA Meeting Page 5 THIS PAGE INTENTIONALLY LEFT BLANK