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HomeMy WebLinkAbout[04] Minutes CITY OF ST.JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday June 25,2014 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch, Gary Osberg, and Dale Wick. Absent: None. Also present: Representing LHR Hospitality Consultants, Doug Rohde, Joel Cairy, Mike Tozier, and Doug Karle. Representing Bayou Blues/Alley Flats Jon Petters. Several members of the public and residents. St. Joseph City Administrator Judy Weyrens. EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the June 25, 2014 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Wick introduced the agenda recommending discussion in item 6A(hotel feasibility study)be moved up to immediately following approval of agenda. Motion by Frank, second by Danielson to approve as presented with the Chair's suggestion. Motion carried 4-0. Hotel Feasibility Study Presentation. Wick introduced the topic and requested background information from Strack. Strack noted she had printed copies of the study available for the public. She stated that in April the EDA approved participation in a hotel market study after soliciting proposals for the study. The EDA and a private investor are splitting the cost of the study evenly.A portion of the study containing propriety investment data will be shared only with the investor. The majority of the study including market supply and demand analysis was included in the printed public report and will be the subject of a presentation by four representatives of LHR Hospitality Consulting. Doug Rohde, CEO, LHR Hospitality introduced himself and other representatives from the Company. Rohde alluded to the purpose of the feasibility study which was to determine whether or not a midscale, limited service hotel in St. Joseph would be feasible. Rohde explained two sites were studied: one along the Interstate-94 corridor and one along the County Road 75. LHR representatives noted each location has significant pros and cons. Ultimately LHR recommended a hotel at an Interstate location be the prime consideration. Although traffic counts on CSAH 75 and Interstate 94 are comparable through most of the year, a location on 1-94 was thought to provide much needed weekday business from Interstate travelers. LHR also noted that as development is added near a hotel, additional demand would be generated. Following the presentation EDA Members agreed to review the study in depth at their leisure.Any additional questions or comments for LHR were to be routed through the EDA Director. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the May 28, 2014 EDA meeting. Motion by Frank, Second Danielson to approve the May 28, 2014 meeting minutes. Motion carried 5:0 Accounts Payable and Monthly Report. June 25,2014 EDA Meeting Page 1 Chair Wick introduced the agenda items noting accounts payable and presence of financial reports. Strack requested consideration of investment in Greater St. Cloud Development Corporation and the final disbursement for LHR's housing study be considered as part of the accounts payable. EDA members agreed by consensus to table action on the GSCDC request. Motion Danielson, second Wick to approve accounts payable as presented with the addition of the final payment to LHR Consulting and financial reports. Motion carried 4:1 with Osberg voting against the motion. Preliminary TIF Application: Bayou Blues/Alley Flats Wick introduced the agenda item and Jon Petters who was representing the project. Petters distributed information on a revised concept for a project referred to as Bayou Blues/Alley Flats. The revised concept is different than a concept presented to the Stearns County Assessor's Office for review and calculation of a projected market value upon completion. Petters noted the original concept included 16 flats in two separate residential structures and a mixed use structure with street level commercial and eight apartments on the second story. Petters described the latest concept as including four flats in one residential structure and a three-story mixed use structure to contain street level commercial and eight apartment units on each the second and third stories. The revised concept provides additional off-street parking space for the proposed commercial and residential units. Petters stated the project would not cash flow without the use of tax increment financing. The EDA expressed support for the use of tax increment financing for the project in concept.A brief discussion regarding TIF terms and district lengths ensued. Strack noted before a term and amount was pledged the project concept would need to be finalized, financial proformas would need to assign a dollar amount to a gap in financing, formal plans would need to be drafted and a final estimated market value would need to be assigned. Hosch noted this would be done as part of the final TIF application. Petters questioned the fee for final application. Strack clarified application fee was$2,500 and the escrow submittal was either$7,500 or $15,000 depending on the size of the project. Hosch noted TIF process was paper intense. Wick expressed support for the use of TIF for the project. Frank alluded to items that needed to be followed up on prior to consideration of a final application but also expressed support for the project. Osberg and Hosch spoke in favor of the project. Motion Osberg, Second Hosch to recommend the City Council accept the TIF pre-application and authorize submittal of a final TIF application and subsequent preparation of documents. Motion carried 4:0 with Danielson abstaining citing the potential for a conflict of interest as he has been consulted on the project by the Applicant. BFA Disbursement: Sisters&Co Wick introduced the agenda topic. He alluded to a previous vote to approve a BFA matching grant of up to$1,000 for the installation of a storefront window at 31 Minnesota Street West. Motion by Frank, Seconded by Danielson to approve disbursement of a BFA grant in the amount of $1,000 to Sisters& Co. Motion carried 5-0. Business Development Report. Strack noted she intended to produce the report earlier in the day but was busy with other tasks. Board Member Announcements. June 25,2014 EDA Meeting Page 2 Osberg inquired as to whether or not the Army Reserve would by hosting an open house for the public to tour the new facility. Frank noted the Council had had some questions about touring the facility as well. A tour is not likely perhaps due to(homeland)security concerns. Adjournment. Motion by Frank, Seconded by Danielson to adjourn the EDA meeting at 6:28 p.m. Motion carried 5-0. June 25,2014 EDA Meeting Page 3 THIS PAGE INTENTIONALLY BLANK June 25, 2014 EDA Meeting Page 4