HomeMy WebLinkAbout1994 [09] Sep 26
l-'age 25'11
September 2b, 19~4
Pursuant:. to due call and notice thereo:f, the City Council :for the City I
o:f SL J'oseph met in special session on Monday, September 26, 1'::1'::34 at
8:ØØ p. m. in the City HalL
:tŒHBE:H:S P:H:ESENT: Mayor Donald Bud Reber; Councilors Bob Loso, Ken
Hiemenz, Ross Rieke; Clerk/Administrator Rachel Stapleton. Stephanie
Hazen was absent.
lITHKi"~í P:H:ESENT: Tom Jovanovich, Joe Bettendorí, Kirby Dahl, Dean
Otterson, Jerry Hirschíeld, Dan Nierengarten, Dale Victor, Linda
Sniezek, Marge Lesnick, Andy Brixius.
Mayor' Heber called the meeting to order at 8:00 p. m. and stated that
-Lhe purpose oí the meeting is to discuss Tax Increment ¥inancing and
DBL Labs plans íor expansion. Additionally the proposed ballot
question will be considered.
TlF PLAN: Dean U-Lterson discussed that 1'IF íinancing is using the
increased taxes aíter the impr'ovement to íinance the project.
Typically eleven years is the íinancing term íor economic development
and twenty five years for downtown blighted areas. Areas which do not
qualify for' downtown, are economic development districts.
Dean discussed methods of TlF financing and stated that this project
would appear to be served by a "Pay as You Go" plan, because of the I
-Light time constraints.
Goals and Ubjectives for a specific geographic planning area are
established and approved by the Council after a public hearing. TIF'
¡"inancing could extend into an area greater than DBL Labs improvement
although Utterson recommended using constraints in establishing the TIF
District. The mechanism used could be a consultant, the Housing
Authority, or City staff. The Housing Authority could teach the City
staff the process for establishing future TIF Districts.
The Plan must be disseminated to the ather taxing authorities, namely
the County and School District, and the notice must explain the fiscal
impact.
Hoss Hieke arrived at 8:25 p. m.
The plan is presented to the Planning Commission for review, comment,
and recommendation to the Council. The Council holds a public hearing
and then cer-Lifies the TIF District to the County Auditor.
:Jt#
J er'r'y Hirschfeld discussed the increase in DBL's market through the
year's, along with the increased emphasis on service thr'ough the ##
efforts of the good people at DBL Labs. He also indicated that his
company has a tight time line with this project. He stated that the I
number of jobs is anticipated to increase from 14ØØ to 23ØØ per day in
the future, and t.hat DBL Labs has a broad market. Texas, Florida, and
Kanf::las have been pursuing them for relocation.
Mayor Heber commented t.hat Bill Farney and Jerry Hirschfeld met with
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September 2b, 1'::1<:i4
Pt::?ter Gillette. Commissioner o:f the Department o£ Trade and E:conomic
Oevelopmen t. Mr. Gillette in:formed them that there are grant monies
available :for projects which create ,j obs.
The Planning Commission will be asked to consider the TIF plan at their
October :3. 1'3'34 meeting. The City Council will hold a public hearing
on November :3, 1'.:3':34.
'rhe plan r-equires a designated TIF planning area. The Council agreed
that 'lhe Industrial Park area along with the Brandenburger property
would comprise the TIF planning area. The plan will be available for
public inspection and on file in the City Clerk/Administrator's o£fice
pr"io!' to 'lhe public hearing. It must also be sent along with notice to
the other taxing districts.
HiemE:=nz stated that the city still has not approved the comprehensive
plan r'evision, and the Star City does not have a TIF plan prepared.
Minimally the star City Commission needs to consider the plan. He
stated 'lhat since we ar'e on such a tight schedule there is pressure to
move too fast. Hiemenz also questioned what is the cap for TIF
financing. Utters on st.ated that there is no statutory cap. An entity
may set one in 'lheir TIF policy. The threshold is normally stat.ed as a
maximum per'centage amount of the t.otal t.ax capacity of the city will be
tied up in 'I'll' District.s.
f1ayor Heber' expressed the need for urgency in following through with
establishing a plan to provide for economic development £or St. Joseph
without the slowdown of bureaucracy.
Loso asked for information on the penalty imposed by t.he State of
Minnesota relating to '!'IF Districts. Otterson explained that the
penalty relates to a loss of 20% to 25% of the LGA and HACA in some
instances. Because DBL Labs is a qualified manufacturer located in a
cit.y of under' ~,øøø in population there would be no penalty. Also the
City would be allowed to take a ten percent administration fee each
year-.
utterson agreed to work out a plan with Tom Jovanovich and Joe
HE:=ttendorf for the Planning Commission to review. Included in it would
be Star City goals and objectives and informat.ion from the
comp!'E:'hensi ve plan.
J eITY Hirschfeld stated that this pr'oject will allow retention of 37
jobs and add thirty t.el forty jobs over the next three to five years.
BALLUT QUJ:;ST1UN: After Council discussion, Loso made a motion to
appr'ove the following ballot question. The motion was seconded by
Heber'.
Should the City of St. Joseph issue general obligation bonds in an
amount not to exceed $1bb,0Ø0 for the purpose of financing the purchase
of approximately 10.:' acres of unimproved real est. ate located between
b:ast Minnesota Street and County Hoad 75 (commonly known as "t.he Hoske
pr-oper'ly") to be used as a site for a Fire Hall, and with the bonds t.o
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be retired by t a;-{ revenues Irom the political subdivisions served by
the SL Joseph Volunteer Fire Department <City of st. Joseph,
'rownships of st. Joseph and St. Wendel)'?
The estimated cost to improve the property is $256,000. The City
intends on selling approximately 4.'3/ acres of improved property which
is not needed :tor the ¡"ire Hall, for the purpose of reducing the
overall costs.
Ayes: Heber' , Hieke, Loso, Hiemenz.
Nayes: None. Motion carried.
The weeting was adjourned at 10: 15 p. m. with a motion by Rieke;
seconded by Luso.
Q
Hachel Stapl ton
Clerk/Administrator