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HomeMy WebLinkAbout2015 [07] Jul 22 CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes—Wednesday July 22, 2015 Present: Board Members: Doug Danielson, Gary Osberg, and Rick Schultz. Also present: Randy Schmitz, Scenic Specialties, Melissa Kolstad, Babygiriz Boutique, Aaron Rieland, Bad Habit Brewery, City Administrator Judy Weyrens, and EDA Director Cynthia Smith-Strack. Absent: Dale Wick and Larry Hosch Call to Order. Vice Chairperson Danielson called the July 22, 2015 meeting of the St. Joseph EDA to order at 5:00 p.m. Agenda. Vice Chairperson Danielson introduced the agenda requesting guests present be moved up on the agenda as appropriate. Osberg requested discussion regarding the EDA marketing map and an informational sign for the Wobegon Trail. Motion by Schultz to approve the agenda revised agenda. Second Osberg. Motion carried 3:0. Public Comment. None. Approval of Minutes. Vice Chairperson Danielson introduced the minutes from the June 24, 2015 regular EDA. Motion by Osberg, Second Schultz to approve the June 24, 2015 regular EDA meeting. Motion carried 3:0. Accounts Payable and Financial Report. Danielson introduced the agenda item. Motion by Osberg, Second by Schultz to approve accounts payable and financial reports. Motion carried 3:0. BFA Grant Request—Aaron Rieland, Bad Habit Brewery. Danielson introduced the agenda item. Strack introduced Aaron Rieland and noted he is proposing removal of two existing windows on the east side of the Millstream building. The windows would be replaced by a glass overhead door. The door would function as an access point to a future outdoor patio for use by guests and as a loading/unloading accessway. Strack stated the BFA guidelines call for projects visible from a public right of way that positively impact EDA revitalization and renewal efforts. The removal of existing windows and replacement with the glass overhead door may or may not qualify as a revitalization or renewal effort since the structure is less than ten years old. However, given the overall development plan which includes an outdoor patio where patrons will gather, it would appear the project will stimulate activity within the downtown core. The Board reviewed images of the proposed glass overhead door and discussed plans for the business with Rieland. Motion Osberg, Second Schultz to approve a BFA Grant in the amount of$1,000. Motion carried 3:0. July 22, 2015 EDA Meeting Page 1 BFA Grant Request— Randy Schmitz, Scenic Specialties. Danielson introduced the agenda item. Strack noted Schmitz is proposing remodeling of a fagade on a metal building at his business adjacent to CR 133. The sprucing up of the fagade was intended to make the metal building blend in with surrounding buildings. Strack noted invoices submitted with the application did not clearly indicate design services applicable to the building in question which totaled more than $2,000. She noted project costs would be substantial. She recommended any approval be contingent on proof of paid invoices specific to the metal building. Schmitz addressed some line items in the invoices submitted with the grant request noting kitchen, restroom, and plan updates in invoice from Negen Architecture related to the metal building in question. Motion Schultz, Second Osberg to approve a BFA Grant in the amount of$1,000. Motion carried 3:0. BFA Grant Request—Melissa Kolstad, Babygiriz Boutique. Danielson introduced the agenda item. Strack introduced Melissa Kolstad. Kolstad is opening a boutique in the retail lease space currently occupied by Retail Therapy. Kolstad currently operates a boutique in Long Prairie, this would be her second location. She proposes window replacement, soffit repair, and new signage at 11 College Avenue North. Kolstad will lease the building, the Property Owner is aware and supportive of improvements. Strack noted the proposed project is exactly what was envisioned when the BFA grant program was developed. The new windows and soffit repair are eligible grant project items. Signage is an eligible expense provided it does not exceed fifty percent of the project and reimbursement amount. Kolstad explained her business plan and addressed questions from the EDA Board. Motion Osberg, Second Schultz to approve a BFA Grant in the amount of$1,000. Motion carried 3:0. 2016 Expense Budget and Capital Projects. Danielson introduced the agenda item. Strack referenced a draft expense budget and 2016 capital projects budget which were included in the EDA packet. She noted a memo from Finance Director Bartlett regarding proposed budget changes. The expense budget illustrates an increase in salary, PERA, FICA, deferred compensation, Medicare contribution, HSA contribution, health insurance, dental insurance, life insurance, and disability line items. Total increase of$33,965 which would equate to approximately one-third of the cost for a full time Community Development Director. Correspondingly there would be a reduction of$25,000 from the Professional Services line item which funded a consulting EDA Director position. The budget included an intern position with a maximum of 200 hours and a $1,000 reduction in the marketing budget over previous years. Capital project requests, as per a discussion at the June EDA meeting, totaled $70,000 with $10,000 for Let's Go Downtown, $50,000 for business development, and $10,000 for BFA grants. Strack noted the EDA was asked to approve a proposed expense budget and capital project request for consideration by the City Council. She noted the Council would set a preliminary budget in September and the preliminary budget could be pared down but not increased prior to approval of the final budget in December. Osberg suggested the intern position be removed from the expense budget as a full time staff person was included. Following discussion the intern position was retained in the expense budget. Schultz opined commercial space in the Downtown was in short supply and demand was increasing. As such Schultz advocated for additional capital project revenue for the Let's Go Downtown line item. Such increased funding could be used to purchase property, provide support for demolition of existing July 22, 2015 EDA Meeting Page 2 structures, and/or provide some sort of an incentive for the creation of additional commercial space in the Downtown. Strack opined excess demand for commercial space in the Downtown was a positive indicator of successful past efforts. She suggested excess demand should induce private investment in creation of additional space, perhaps limiting the need for public involvement and financial support. EDA incentive efforts could then focus on other goals, for example, the creation of shovel ready industrial lots. Schultz noted a small public incentive could enhance private investment within the Downtown. He suggested increasing the capital project request by$15,000 to be used to stimulate the creation of additional commercial space in the Downtown. Motion Danielson, Second Schultz to add$15,000 to the proposed Let's Go Downtown capital project resulting in a total budget request of$188,015 for 2016 with $85,000 of that for capital projects and the remaining$103,015 being expense budget. Motion carried 3:0. Strack noted Bartlett's memo and the packet also included information on a payment request by Jon Petters relating to the Bayou Blues project along with refunding of unused escrow for TIF Plan development. Motion Danielson, Second Schultz to reimburse Petters for request relating to TIF Plan development and refund unused escrow. Motion carried 3:0. BFA Grant Disbursement: Tanya Finken, Sliced on College Ave. Danielson introduced the agenda item. Strack noted paid receipts had not been received and requested removal of the item from consideration. Business Development Report. Danielson introduced the agenda item. Strack provided an overview of the report. Marketing Map and Wobegon Trail Sign. Osberg stated a discussion about the marketing map could wait for the next meeting. He stated he was a former member of the Lake Wobegon Trail Board. He noted St. Joseph has a trailhead center but signage to the trailhead is not present adjacent to 1-94. Osberg stated an informational sign would cost$4,000. He had asked the Chamber of Commerce to participate in the sign cost and they would donate up to $200. Danielson suggested Osberg check with the Jaycee's regarding a donation for the sign. Board Member Announcements. Danielson acknowledged the City's assistance in making the 4th of July event a success. He noted planning is beginning for next year's event with a focus on activities throughout the day of the 4th Adjournment. Meeting adjourned by consensus at 5:55 p.m. ;f Cynthia Smith-Strack EDA Director July 22, 2015 EDA Meeting Page 3