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HomeMy WebLinkAbout2014 [09] Sep 24 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday September 24, 2014 Present: Board Members Doug Danielson, Steve Frank, Larry Hosch, Gary Osberg, and Dale Wick. Absent: None. Also present: Resident Mike McDonald, Developer Jon Petters, St. Joseph City Administrator Judy Weyrens and EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the September 24, 2014 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Wick introduced the agenda. Motion Frank to approve the agenda as presented, second by Wick. Motion carried 4-0. Public Comment. None. Approval of Minutes. Chairperson Wick introduced the minutes from the August 27, 2014 EDA meeting. Motion by Danielson, Second Frank to approve the August 27, 2014 meeting minutes as presented. Motion carried 4:0 Accounts Payable and Monthly Report. Chair Wick introduced the agenda items noting accounts payable and presence of financial reports. Frank noted a sense the City Council would like to shift focus from development adjacent to 1-94 to a project with a willing development participant. He inquired as to the balance in the "Let's Go Downtown" project fund that could be available for lot purchase. Strack reported a current available balance of $25,000. Wick noted the balance could change depending on the final budget which will be set in December. He stated his impression is the EDA budget will not be significantly altered. Motion Frank, second Osberg to approve accounts payable and financial reports as presented. Motion carried 5:0. Demolition Grant Requests: Jon Petters, Bayou Blues Wick introduced the agenda item. Strack stated the EDA received two separate applications for demolition grans in conjunction with the Bayou Blues/Alley Flats project. The first for 24 College Avenue North the second for 30 Ash Street East. The EDA demolition grant program provides a matching reimbursement grant for actual demolition costs up to $2,500 per property address. Demolition grant priorities include: removal of potentially hazardous structures, buildings that were vacant for long periods of time, removal of buildings on lots with development potential, removal of structures on lots with municipal services, and removal of buildings on lots with identified reuses. Strack noted the applications satisfied three of the five priorities. Motion Frank, second Hosch to approve demolition reimbursement grants for 24 College Avenue and 30 Ash Street. September 24, 2014 EDA Meeting Page 1 Frank stated he is not opposed to the project. He also stated his immediate concern with demolition would be that the EDA required the lot to be put back to useable standards post-demolition. He clarified debris would need to be removed, turf restored, and utilities capped. Strack noted the EDA could make restoration and capping conditions of approval and make grant reimbursement release subject to review of the site for compliance regarding site restoration. Weyrens noted a demolition permit is required from the Building Official prior to any work being done at either site. Osberg stated he did not and would not support burning debris at the site, even if it was a controlled burn by the Fire Department. He noted he spoke with Colleen Petters regarding burning the debris and she said that would not occur. He noted the application still stated it would occur. Frank stated he had mixed feelings as he supported the Fire Department's training efforts in conducting practice burns but he was also a bit concerned regarding proximity to other buildings. Weyrens stated the Fire Department would likely not be able to conduct a practice burn at either site due to urban development in close proximity. Jon Petters noted the applications he submitted should be amended to disregard practice burn as a possibility. Frank stated concerns regarding removal of trees and landscaping at the site. Petters stated a landscape plan had been developed. Frank referenced discussion at a City Council workshop regarding alley traffic in relation to the proposed development. Wick noted the focus of this agenda item was only the request for demolition grant approval. Site plan approval would be reviewed by the Planning Commission and City Council. Wick requested a vote on the motion. Motion approved 5:0. Real Estate Roundtable Discussion Wick introduced the agenda item and noted he attended the roundtable and found it productive. Strack presented a summary of discussion at the round table. In general the real estate market is thought to have returned to a healthy state. Not an overly aggressive market that existed prior to the housing bubble bursting, but a truly healthy state. Outlook for 2015 is positive. Lot prices in St. Joseph are thought to remain high and selection limited. Real estate professionals attending report two predominant market segments at this time: first time home buyers looking to spend $160,000 or less and mature members of the community looking for nice lots and building packages exceeding $250,000. Many buyers are empty nesters who are looking for nice locations, not necessarily bigger houses. Loan officers report eligibility for USDA First Time Home Buyer's program funds to St. Joseph residents has been restored. The program provides loans to first time buyers without a percent down requirement. Senior housing options are needed and are very price sensitive. Senior living is most effective when in close proximity to core commercial services and programmed/organized social activities. The Torborg September 24, 2014 EDA Meeting Page 2 patio home development in St. Cloud is high in demand, lease only between $1,200 and $1,700/month including association fees. The WAC/SAC incentive ends this fall. Six of ten available incentive packages have been used or pending. Osberg suggested continued funding of a WAC/SAC incentive program. Danielson concurred. Frank noted that under a certain threshold real estate taxes generated by single family dwellings do not overcome the cost of providing municipal services. As such the value of an incentive should be evaluated carefully. He acknowledged there is a definite tie between increased rooftops and commercial development. Strack stated the real estate roundtable participants continue to see the largest hurdle for attracting families with children is the lack of a high school. Several of the meeting participants were involved with an ad hoc group which succeeded in raising awareness and public interest prior to the construction of Kennedy Community School. Consensus of the group was it is time to reconvene the ad hoc group to discuss secondary education options. Frank opined a new school district is not a likely option when reviewing approaches to opening a high school in St. Joseph. Wick noted the real estate round table agreed with Frank's thoughts; however, the ad hoc group could investigate charter school options. Osberg a school for the arts could be researched. Frank stated demographic trends illustrate high growth near Clearwater and Clear Lake. He also noted Apollo is said to have excess space available. The EDA further discussed the need for secondary institution in St. Joseph, consensus is to support revival of the ad hoc group. Business Development Report. Wick referenced the business development update. Strack noted the City Council had met in a workshop setting to discuss future projects as part of the annual budget and capital projects review process. One of the items the EDA had heard about at a previous meeting was a need to update the east/west alley and abutting areas in west 100 block north of Minnesota Street. Strack stated she held off meeting with property owners until the Council workshop was completed. Wick stated the Council didn't really direct any action as a result of the workshop discussion. Rather they were just seeking direction from the EDA. Frank suggested creating a vision for the area including amenities alluded to in previous visioning efforts by the Governor's Design Team and a document created by Scenic Specialties and paid for by the EDA. Osberg stated the sidewalk at College Avenue North and Ash Street was dangerous. He opined the grading and elevation was not appropriate. Wick noted the Public Work's Superintendent could take a look at it. Weyrens noted the sidewalk was designed to accommodate pre-existing conditions. Osberg opined the Duetz parking lot paving had improved the alley significantly. Frank noted that a permit was not issued so drainage and other items related to the parking lot had not been reviewed. Strack inquired as to what, if anything, she should take back to Minnesota Street Market Manager Pat Benson as a result from previous meetings. September 24, 2014 EDA Meeting Page 3 Osberg opined the entire alley space could be paved. Public alleyways and private parking lots could simply be paved with asphalt, secondary amenities weren't an identified need. Hosch noted the existence of design team illustrations and illustrations from Scenic Specialties, both of which had established a vision for the area which could be used as a basis for planning updates. Wick opined property owners needed to be consulted first, their insight and what they thought of the project was of primary importance. Strack inquired as to what the project was. Wick suggested meetings with property owners could define the project. Frank suggested asking property owners what there immediate needs/wants were. Danielson noted previous visioning items could be presented for input. Osberg concurred opining the calling of a meeting of property owners and listening to who shows up was a good starting point. Strack voiced her concern over a struggle with leadership. For example, how would the east west alley across College Avenue becoming a one-way as a result of the Bayou Blues/Alley Flats project impact this alley? If this alley would become a one-way it would greatly impact what could/should be done and what property owners may think. Wick noted he was not in favor of spending any money on drawings or studies as they don't produce results. He recommended holding a meeting with property owners and noting if they don't show up there isn't support for doing anything. Hosch concurred a meeting with property owners was a good next step, especially if they were allowed to comment on previous visioning items. Consensus of the EDA to direct staff to meet with affected property owners regarding the alley. Strack noted Joel Vogel from Rengel Printing and she would be meeting with Diane Hageman from CSB/SJU in early October regarding revision of the "Where's Waldo" map. She also noted she met with Bayou Blues representatives and the City's TIF Consultant Traci Ryan regarding TIF documents. Announcements. Wick noted the City Council also discussed various potential projects, including re-prioritizing economic development goals. Wick stated the City Council is shifting focus from creating shovel ready lots at 1-94 (Walz/GTI) to projects with a more immediate return. Frank noted he would like to see development at 1-94 (Walz/GTI) but he is not willing to spend any more time or money at this point to make anything happen. Wick stated a potential project the EDA could promote is creation of shovel ready industrial/business lots in what has been referred to as"Parkway Business Center". Strack described "Parkway Business Center" as 52 acres of bank-owned property available just east of the existing industrial park. Plat documents and construction plans were completed for the development in 2008. Improvement costs are estimated at approximately$1 per square foot. The EDA has repeatedly been advised shovel ready lots are key to promoting new development. Hosch noted shovel ready lots were key to the development of Buettner Business Park. He suggested getting information together for discussion by the EDA at a future meeting. Wick concurred requesting information be provided on the development of Parkway Business Center for review at the October EDA meeting. Adjournment. Motion by Wick, Seconded by Frank to adjourn the EDA meeting at 6:20 p.m. Motion carried 4-0. � ��� /zQ Cynthia Smith-Strack EDA Director September 24, 2014 EDA Meeting Page 4