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HomeMy WebLinkAbout2015 [01] Jan 28 CITY OF ST.JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday January 28, 2015 Present: Board Members: Larry Hosch, Gary Osberg, Rick Schultz, and Dale Wick. Absent: Doug Danielson. Also present: Bernie Brixius, Chief Administrative Officer(CAO) Central Minnesota Credit Union (CMCU), EDA Intern Erin Speltz, City Administrator Judy Weyrens, and EDA Director Cynthia Smith-Strack. Call to Order. Chairperson Wick called the January 28, 2015 meeting of the St. Joseph EDA to order at 5:00 p.m. Oath of Office. EDA Member Rick Schultz took the EDA oath of office. Election of Officers. Wick noted the EDA by-laws require annual election of EDA officers at the first meeting of each year. Officers from 2014 were: Dale Wick, Chair; Doug Danielson, Vice-Chair and Larry Hosch Treasurer/Secretary. Motion Osberg, second Schultz to reappoint officers from 2014 for 2015. All voted in favor of the motion. Agenda. Motion by Schultz to approve the agenda, moving CMCU item up to directly after public comment. Second Osberg. Motion carried 4:0. Public Comment. None. TIF Request: CMCU. Chairperson Wick introduced the agenda item and Bernie Brixius from CMCU. Strack stated CMCU submitted a pre-application for tax increment financing assistance in conjunction with a$4.2M office building at 1140 Elm Street East. The project involves the construction of a one story professional office building which will house a call center, information technology support/equipment, and other administrative and support staff. The office is expected to house a minimum of 30 workers initially but is designed to accommodate up to 80 employees. A total of 11 to 16 jobs will be retained in St. Joseph and 40 to 68 new full-time equivalent positions will be added over five years following project completion. Wage and benefit packages range from$19.35 to $43.30 per hour for jobs created/retained CMCU proposes $125,257.01 in pay-as-you-go TIF. The estimated taxes before and after the project rise from $9,000 to $64,600. The project is proposed for site with existing municipal utilities and as such is considered infill development. The project appears to meet TIF eligibility guidelines and the Applicant as a financial institution will self-fund remaining project costs. The Applicant certifies the development will not move forward in St. Joseph but for the use of TIF as the project is more costly in St. Joseph than in an alternate location. Motion by Schultz, second by Wick to recommend the City Council call for a public hearing for the TlF plan. Motion carried unanimously. Approval of Minutes. Chairperson Wick introduced the minutes from the December 17, 2014 regular EDA meeting. January 28, 2015 EDA Meeting Page 1 Motion by Osberg, Second Wick to approve the December 17, 2014 regular EDA meeting minutes. Motion carried 3:0 with Schultz abstaining. Accounts Payable and Financial Report. Wick introduced the agenda item. Motion by Hosch, Second by Osberg to approve December accounts payable and financial reports. Motion carried 4:0. Greater St.Cloud Development Corporation Donation. Wick introduced the agenda item. Osberg suggested there is perceived value in the donation. Wick requested additional information about how the money was being spent and what level of return was being provided. Schultz suggested a conversation with the GSCDC requesting an activity be planned by the GSCDC in St. Joseph in 2015. Wick commented he would make an effort to attend events as the designated contact for the GSCDC. Motion Osberg, Second Schultz to approve a $5,000 donation to GSCDC. Motion carried 4:0. 2014 EDA Annual Report to City Council. Wick introduced the agenda item and Strack provided an overview of the report. Osberg requested the update listing active projects be updated to show completed projects with a different status symbol i.e. star. Wick requested the Small Cities Development Grant program be referenced in the executive summary. Strack is to make the changes prior to forwarding to the City Council. Motion Osberg, Second Hosch to accept the annual report and authorize submittal to the City Council. Motion carried 4:0. Business Development Report. Wick introduced the item. Strack noted the City Engineer was working on designs for the alley project in the 100 block of West Minnesota Street. Progress was also being made on the marketing map being developed by Rengel Printing. The Bayou Blues developer was continuing to secure pre-leases and project financing. Strack and Weyrens had met with a few downtown property owners regarding facade and fix up type projects and information was prepared and distributed to Mn. DEED for a call center. The former MCO/Essilor site was pitched for the call center project. Announcements. Schultz voiced concern over items that may be falling through the cracks due to limited economic development staffing. He opined this is something to watch as the year progresses. Schultz also directed Intern Erin Speltz to follow up with two entrepreneurs profiled in a report in The Record. Adjournment. Motion by Osberg, Seconded by Wick to adjourn the EDA meeting at 5:58 p.m. Motion carried 4-0. Cynthia Smith-Strack EDA Director January 28, 2015 EDA Meeting Page 2