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HomeMy WebLinkAbout[04a] Minutes CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes – Wednesday April 22, 2015 Present: Board Members: Doug Danielson, Gary Osberg, and Rick Schultz. Absent: Larry Hosch and Dale Wick. Also present: EDA Intern Erin Speltz, City Administrator Judy Weyrens, and EDA Director Cynthia Smith- Strack. Call to Order. Vice Chairperson Danielson called the April 22, 2015 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Motion by Osberg to approve the agenda as presented. Second Schultz. Motion carried 3:0. Public Comment. None. Approval of Minutes. Vice Chairperson Danielson introduced the minutes from the March 16, 2015 regular EDA meeting and the March 16, 2015 joint meeting with the City Council. Motion by Osberg, Second Schultz to approve the March 16, 2015 regular EDA meeting minutes and the March 16, joint meeting minutes as presented. Motion carried 3:0. Accounts Payable and Financial Report. Danielson introduced the agenda item. Strack pointed out the balance in TIF 2-1, in the BFA grant fund, and the demolition grant fund. Motion by Schultz, Second by Osberg to approve accounts payable and financial reports. Motion carried 3:0. BFA Grant Application – Jeff & Stacie Engholm. Danielson introduced the agenda item, the Applicant Jeff Engholm, and Robert McCoy the Project Designer. Strack stated the Engholm’s propose façade enhancements to the property at 25 Minnesota Street West. Improvements proposed include: repairing and painting the sidewalk level façade; adding a new deck and railing to the upper level; installation of new balcony door and fluted surround; reconstruction of roof overhang; new soffit and fascia; new soffit lighting; external window treatments on the upper level; decorative cover for attic ventilation; and, new signage. McCoy presented artistic renderings of the project. Engholm provided background on the building and the project. Strack noted she reviewed the BFA Grant application and found it consistent with the grant guidelines. She recommended approval of the $1,000 matching grant. Motion Schultz, Second Osberg to approve the BFA Grant Application matching not to exceed $1,000. Motion carried 3:0. April 22, 2015 EDA Meeting Page 1 Revolving Loan Fund Request: Jeff/Stacie Engholm d.b.a. Prego Properties. Danielson introduced the agenda item. Strack referenced a loan application for the Engholm project. The loan request was for $37,000 for 15 years at three percent. The loan would be secured by a second position on the building at 25 Minnesota Street West. Strack stated a loan review committee had met and reviewed: the loan application; personal financial statement, a letter of support following review by the primary lender, proof of real estate taxes paid, proof of utility bills paid, building/project plans, and quotes from contractors/vendors. The loan review committee recommends approval of a loan in the amount of $35,000 at three percent for fifteen years secured by a second position on real estate. The $35,000 principal factors in the BFA grant of $1,000 and the out of pocket grant match. It was noted Engholm had a previous loan through the RLF and that was nearly paid off. Electronic payments are made monthly and the loan has always been current. The EDA further discussed the project. Schultz inquired as to the timing of the project. Engholm noted he’d like to have everything complete by July. Motion Osberg, Second Schultz to approve a loan in the amount of $35,000 at three percent interest for a term of 15 years. Motion passed 2-0, Danielson abstained citing his employer as the lead mortgage holder on the building. BFA Request: Tanya Finken d.b.a. Sliced on College Ave Danielson introduced the agenda item, the Applicant Tanya Finken and Robert McCoy the Project Designer. Strack stated Finken has purchased the former Teli’s/Joe Town building. She plans to open an eatery offering take out/dine in gourmet pizza and deli style, healthy American contemporary food. The project includes a late night pizza by the slice window which will serve walk up traffic on College Avenue. Building improvements include installation of large storefront window on College Avenue, take-out window, new door, new lighting, signage, and perhaps installation of a window on the south side of the building. Inside general updating of the dining area and improvement of the kitchen to catering quality will be undertaken. McCoy presented artistic renderings of the project. Finken provided background on the building and the project. Strack noted she reviewed the BFA Grant application and found it consistent with the grant guidelines. She recommended approval of the $1,000 matching grant. Motion Schultz, Second Osberg to approve the BFA Grant Application matching not to exceed $1,000. Motion carried 3:0. Revolving Loan Fund Request: Tanya Finken d.b.a. Sliced on College Ave. Danielson introduced the agenda item. Strack referenced a loan application for the project. The loan request was for $30,000 for five years at three percent. The loan would be secured by a first position on property in Waite Park. Strack noted that the EDA RLF balance was not sufficient to accommodate the full request and the previous request. She stated the loan program was offered on a first come, first served basis. Strack noted available principal for Finken was between $10,000 and $15,000. Strack stated a loan review committee had met and reviewed: the loan application; a business plan for Sliced, personal financial statement, a letter of support following review by the primary lender, proof of real estate taxes paid, proof of utility bills paid, building/project plans, and quotes from contractors/vendors. April 22, 2015 EDA Meeting Page 2 The loan review committee recommends approval of a loan in the amount available estimated to be less than $15,000 at three percent for five years secured by a first position on real estate in Waite Park. The EDA further discussed the project. Schultz inquired as to the timing of the project. Finken noted she’d like to have everything complete by July. Motion Schultz, Second Osberg to approve a loan up to $15,000 or the available loan principal at three percent interest for a term of 5 years. Motion passed 2-0, Danielson abstained citing his employer as the lead mortgage holder on the ‘Sliced’ building. Business Development Report. Danielson introduced the item. The EDA reviewed the business development report. Strack inquired as to EDA Board Member availability for business retention/expansion visits with a few local industries. Adjournment. Motion by Danielson, Second by Osberg to adjourn the EDA meeting at 6:00 p.m. Motion carried 3-0. 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