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HomeMy WebLinkAbout[04a] Minutes - January 20, 2016 January 20, 2016 Page 1 of 3 Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority for the City of St. Joseph met in regular session on Wednesday January 20, 2016 at 5:00 PM in the St. Joseph City Hall. Members Present: Chair Dale Wick. Board Members Rick Schultz, Doug Danielson, Gary Osberg, Larry Hosch (arriving at 5:20 PM). Citv Representatives Present: City Administrator Judy Weyrens, Finance Director Lori Bartlett, Finance Consultant Jason Aarsvold Others Present:AI Keller, Tyler Keller Public Comments: No one present wished to speak. Aqenda Approval: Schultr made a motion to approve the agenda, seconded by Danielson and passed unanimously by those present. Consent Aqenda: Schultz made a motion to approve the consent agenda as follows; seconded by Wick and passed unanimously by those present. a. Minutes- Requested Action: Approve the minutes of November 18, 2015. b. Financial Report-Requested Action: Accept the November and December 2015 Financial Reports as presented. TIF Consultant-Development Proiects: Weyrens stated that the City has opted to change TIF/Finance Consultant from Tracy Ryan to Ehlers. Staff contacted Sauk Rapids and Sartell and they both use Ehlers and are satisfied with their service. Weyrens stated that the City has received a request to utilize Tax Increment Financing (TIF)or Tax Abatement for a proposed senior living facility. Jason Aarsvold introduced himself to the EDA and stated that he has considerable experience working with municipalities, particularly advising communities utilizing tax incentives. Weyrens introduced AI Keller to the Board stating that he is proposing to develop a senior community near Klinefelter Park. The project is proposed to include a memory care unit, independent living and some retail. Due to the cost of the infrastructure and building, Keller stated that he will be requesting to utilize either TIF or Tax Abatement. Keller stated that early indications are a financial gap of 1.2 Million. Aarsvold stated that TIF for housing can only be utilized if 20% of the housing units service the low to moderate income, if it does not, TIF cannot be utilized. Keller stated that the first phase includes private pay; however the second phase will include subsidized units. Aarsvold clarified that each year the development must certify that the 20%threshold is satisfied so even though the second phase will meet the requirement, it must be met from the beginning of the project. Weyrens questioned if redevelopment TIF could be utilized. Aarsvold stated that redevelopment TIF can be utilized for commercial and industrial, the Statute is very specific. The commercial uses proposed for the development are retail which are not allowable uses for TIF by MN Statute. Aarsvold stated that the project could utilize Tax Abatement which is a less costly and the process is not as involved. The difference between TIF and Tax Abatement is that utilization of TIF involves participation by the School District, City and County. Tax Abatement allows the option of School Districts and Counties. Therefore, Tax Abatement does not allow for reimbursement as quickly as Tax Increment Financing does. Schultz questioned the process for involving the County. He stated that he would doubt that the School District would participate as it does not fit within their mission. However, the County should be a participant as they have supported other developments. Weyrens stated that she would contact the HRA Director to start the process. The Board agreed that they would prefer the utilization of TIF, but support the project as the Community has asked for senior housing. January 20, 2016 Page 2 of 3 Aarsvold stated that as the Keller has additional information he can start preparing the proposed financing schedules. (Hosch arrived at this time). The Board questioned when the developer intends to start the development. Keller stated that the owner would like to start early in 2016. Schultz reported that the City Council recently authorized the design for Field Street which will be utilized to serve the proposed facility. The Council opted to design the road with a parkway adding a center median with some landscape features. Keller stated that the enhanced road design will add to the costs that he will need financial assistance. Weyrens stated that while the Council has not discussed, Field Street is a regional road which could help offset some of the road costs. Therefore, the financial assistance can be a combination of Tax Abatement and Sales Tax revenue. Weyrens stated that she would also contact Stearns Electric to inquire as to any financial subsidy they can bring forward. The Board agreed that the project is a need for the City and they support the need for financial assistance and Keller should continue with the process. Osberg questioned if the property is currently located within the corporate limits. Weyrens stated that the property is not, but since the City meets the requirements of the Orderly Annexation Agreement, the property can be annexed without approval by St. Joseph Township. As for the road sections, the City will only annex the portion of the road that is needed. Weyrens further stated that City staff has been meeting with the property owners as Field Street has been developed to help meet the needs of the City and the property owners. Election of Officers: Osberg made a motion to re-elect the current EDA officers for the calendar year 2016. The motion was seconded by Danielson and passed unanimously by those present. Officers for 2016 are: Chair-Dale Wick; Vice Chair poug Danielson; Secretary/Treasurer Larry Hosch. EDA Director Reports Lodqinct Tax: Weyrens stated that she is still working on preparing the required documents for review by the Board. She stated that she has reached out to the St. Cloud Visitors Bureau to discuss options, but has yet to hear back. One of the options is to partner with the SCVB and establish a committee that would assure that the majority of the funds collected by St. Joseph and spent in St. Joseph. Waite Park is currently working on this same option. Both Sartell and Waite Park are part of the SCVB and looking to separate to assure that their community recognizes the benefit. SCVNB has offered Waite Park the option of establishing a subcommittee for Waite Park overseeing the use of a portion of the fees. At this time additional information is not available. Industrial Park: Weyrens reported that she has been in contact with the owner representative of the area known as the Parkway Business Center. The property is still under the ownership of the bank who received the property in default. Weyrens stated that she questioned if the bank would be willing to partner to plat the property and install the infrastructure to create shovel ready lots. The owner has requested additional information on funding opportunities but is interested in the prospect. Weyrens will report back to the Board when more information is available. Potential Grant Opportunitv: Weyrens reported that Hosch forwarded a grant opportunity from the Delux Corporation. They are accepting applications for communities to win a downtown "make over" in the amount of$ 500,000. The application only requires a 500 word essay on the need and what would be done. The application is due on January 28, 2016. The grant opportunity is nationwide and Delux will identify two or three communities as finalist the first week of May and then the winner will be determined by the general public voting electronically. Board members questioned if the City works with a grant writer or who will prepare the application. Weyrens stated that due to the quick submission deadline, the grant application will be completed internally and then reviewed by others for input. Wick made a motion authorizing Weyrens to submit a grant application to the Delux Corporation for the Downtown Rehab program; seconded by Schultz and passed unanimously. January 20, 2016 Page 3 of 3 Member Update: Schultz reported that he continues to meet with ISD 742 Superintendent Will Jet to discuss the former Colts Academy Building the potential need for ISD 742 to extend their lease beyond 2017. The School District will be reviewing all building needs since the failed referendum vote. Adiourn: Schultz made a motion to adjourn at 5:55 PM; seconded by Osberg and passed unanimously. Judy Weyrens EDA Director/Administrator