HomeMy WebLinkAbout2002 [04] Apr 17
.
St. Joseph Economic Development Authority
Meeting Notice
Wednesday, April 17, 2002
4:00 p.m. City Hall
1. Call to Order
2. Approval of Agenda
3. Approval of Minutes
A. March 20, 2002
4. Approval of Accounts Payable
5. Business
A. Request for TIF, MIF application - Gohman ConstructionNicWest
. B. 81. Joseph Business Park Updates
C. Commercial Redevelopment
6. Director Report
A. Prospect List/Activity Report
B. TIF 1-3 Borgert Products Inc. Update
7. Board Member Announcements
8. Adjournment
.
· CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Annual Meeting Minutes - Wednesday, March 20, 2002
Present: Bruce Gohman, Mayor Larry Hosch, Bob Loso, Mike Deutz and Ross Rieke.
Also present: Joanne Foust, Municipal Development Group
Chairman Gohman called the meeting of the St. Joseph EDA to order at 4:10 p.m.
Agenda
Moved by Rieke, seconded by Hosch to approve the agenda with the addition of "Letter of Support for the
Update of the Comprehensive Plan" added to Business. All in favor, the amended agenda was approved
5-0.
Minutes
Moved by Duetz seconded by Rieke to approve the minutes of the February 20, 2002 EDA meeting with
the change of "President Gohman" to "Chairman Gohman". With all in favor, the minutes of the February
20, 2002 meeting were approved as amended, 5:0.
Accounts Payable
Moved by Duetz, seconded by Loso to approve the February Accounts Payable in the amount of
· $1,524.24. Discussion regarding the availability of funds to cover professional services at the end of the
calendar year, if needed, occurred. With all in favor of the motion the Accounts Payable were approved
5-0.
A copy of the 2002 EDA budget was included in the packet. EDA members inquired about the allocation
of expenses for the City's telephone service. Administrator Weyrens will review this.
Business
Commercial Redevelopment Sites
A preliminary report containing potential sites for redevelopment along with possible public funding
sources to assist with projects was reviewed. EDA members suggested the addition of the Knight
building north of city hall, the floral shop adjacent to Super America and the Center Care Clinic, if they
relocate. EDA members also requested the addition of information relating to the square footage of the
sites and buildings, taxes and city's portion of the taxes. It was the consensus of the EDA to have MDG
prepare a letter to property owners regarding possible EDA assistance for the redevelopment of the sites,
for the EDA's review and approval at the April meeting. EDA members also noted that in the past the
First State Bank of St. Joseph had offered low interest loans to businesses along Minnesota Avenue for
façade improvements.
Contract for Economic Development Services
In August of 2001, the EDA entered into a six-month contract for Economic Development Services with
Municipal Development Group, Inc. (MDG). The contract, which continued through the end of February,
2002, included 28 hours per month for a fee of $1000 plus additional hours at $60 per hour. MDG
submitted a letter to the EDA expressing their desire to continue to work with the community. An increase
· of $100 to the monthly fee was proposed.
1
.
. Moved by Loso, seconded by Duetz to recommend to the City Council that the contract with Municipal
Development Group, Inc. be extended through December 31, 2002, to be concurrent with the City's fiscal
year, at a rate of $1,100 for 28 hours, plus additional hours at $60 per hour. Any rate increases proposed
for 2003 to be presented to the EDA in September 2002 for budgeting purposes. All in favor, the motion
was approved 5-0.
Letter of Support for Comprehensive Plan Update
The City is in the process of applying for grant funds to assist with the update of the City's
Comprehensive Plan. Letters of support from various organizations/agencies are required as a part of
the grant application process. The EDA discussed how the Comprehensive Plan will assist with
identifying future commercial and industrial areas.
Moved by Duetz, seconded by Loso to authorize Chairman Gohman to submit a letter of support for the
update of the Comprehensive Plan on behalf of the Economic Development Authority. All in favor, the
motion was approved 5-0.
Project Updates
A report outlining communication with various contacts was included in the EDA's packet. The final
application for tax increment financing for the VicWest project has not yet been received. The project is
moving forward, with the request for TIF anticipated for the April meeting. EDA members agreed to
conduct a special meeting or move the April 17, 2002 meeting earlier if needed to accommodate
VicWest's construction schedule. Storm water ponding requirements for the VicWest project and the
remainder of the business park was discussed. EDA members felt it would be beneficial to have the City
Engineer attend the next EDA meeting to provide an overview of storm water ponding requirements within
the park so the EDA would have a better understanding when reviewing site plans and marketing the
. sites.
Director's Report:
An update on the public improvement process for St. Joseph Business Park and the covenants was
provided.
The City received approximately one-half of the tax increment it was scheduled to receive in 2001 for TIF
District 1-3. The City Attorney is assisting to expedite the process to receive the balance due to the City
so the TIF payment can be made to Borgert Products.
Board Member Announcements:
Mayor Hosch reported that he attended a very informative Tax Abatement Session on Thursday, March at
the St. Cloud Technical College. Copies of the slide presentation were distributed to EDA members.
EDA members requested that a letter be sent to Xcel Energy thanking them for the donation to update the
brochure inserts.
Next Meeting
The next official meeting of the EDA was scheduled for Wednesday, April 17, 2002 at 4:00 p.m
Adjournment
Moved by Duetz, seconded by Loso to adjourn. All voted in favor of adjournment, the EDA meeting
adjourned at 5:15 p.m.
.
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(320) 363-7201
Fax: 363-0342 S1. Joseph Economic Development Authority . 6'. I "w.;1 Pi.)
CLERK! Meeting Notice ' tit'
ADMINISTRATOR Wednesday, April 17, 2002 to fl·cf- .
Judy Weyrens
4:00 p.m. City Hall . r'VC~
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MAYOR \ I
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8. Adjournment ~
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CITY OF ST. JOSEPH
- ECONOMIC DEVELOPMENT AUTHORITY
- Annual Meeting Minutes - Wednesday, March 20, 2002
Present: Bruce Gohman, Mayor Larry Hosch, Bob LOSO, Mike Deutz and Ross Rieke.
Also present: Joanne Foust, Municipal Development Group
Chairman Gohman called the meeting of the St. Joseph EDA to order at 4: 1 0 p.m.
Agenda
Moved by Rieke, seconded by Hosch to approve the agenda with the addition of "Letter of Support for the
Update of the Comprehensive Plan" added to Business. All in favor, the amended agenda was approved
5-0.
Minutes
Moved by Duetz seconded by Rieke to approve the minutes of the February 20, 2002 EDA meeting with
the change of "President Gohman" to "Chairman Gohman". With all in favor, the minutes of the February
20, 2002 meeting were approved as amended, 5:0.
Accounts Payable
Moved by Duetz, seconded by Loso to approve the February Accounts Payable in the amount of
$1,524.24. Discussion regarding the availability of funds to cover professional services at the end of the
calendar year, if needed, occurred. With all in favor of the motion the Accounts Payable were approved
5-0.
A copy of the 2002 EDA budget was included in the packet. EDA members inquired about the allocation
of expenses for the City's telephone service. Administrator Weyrens will review this.
Business
Commercial Redevelopment Sites
A preliminary report containing potential sites for redevelopment along with possible public funding
sources to assist with projects was reviewed. EDA members suggested the addition of the Knight
building north of city hall, the floral shop adjacent to Super America and the Center Care Clinic,'if they
relocate. EDA members also requested the addition of information relating to the square footage of the
sites and buildings, taxes and city's portion of the taxes. It was the consensus of the EDA to have MDG
prepare a letter to property owners regarding possible EDA assistance for the redevelopment of the sites,
for the EDA's review and approval at the April meeting. EDA members also noted that in the past the
First State Bank of St. Joseph had offered low interest loans to businesses along Minnesota Avenue for
façade improvements.
Contract for Economic Development Services
In August of 2001, the EDA entered into a six-month contract for Economic Development Services with
Municipal Development Group, Inc. (MDG). The contract, which continued through the end of February,
2002, included 28 hours per month for a fee of $1000 plus additional hours at $60 per hour. MDG
submitted a letter to the EDA expressing their desire to continue to work with the community. An increase
of $100 to the monthly fee was proposed.
1
. .
Moved by Loso, seconded by Duetz to recommend to the City Council that the contract with Municipal
Development Group, Inc. be extended through December 31, 2002, to be concurrent with the City's fiscal
year, at a rate of $1, 100 for 28 hours, plus additional hours at $60 per hour. Any rate increases proposed
for 2003 to be presented to the EDA in September 2002 for budgeting purposes. All in favor, the motion
was approved 5-0.
Letter of Support for Comprehensive Plan Update
The City is in the process of applying for grant funds to assist with the update of the City's
Comprehensive Plan. Letters of support from various organizations/agencies are required as a part of
the grant application process. The EDA discussed how the Comprehensive Plan will assist with
identifying future commercial and industrial areas.
Moved by Duetz, seconded by Loso to authorize Chairman Gohman to submit a letter of support for the
update of the Comprehensive Plan on behalf of the Economic Development Authority. All in favor, the
motion was approved 5-0.
Project Updates
A report outlining communication with various contacts was included in the EDA's packet. The final
application for tax increment financing for the VicWest project has not yet been received. The project is
moving forward, with the request for TIF anticipated for the April meeting. EDA members agreed to
conduct a special meeting or move the April 17, 2002 meeting earlier if needed to accommodate
VicWest's construction schedule. Storm water ponding requirements for the VicWest project and the
remainder of the business park was discussed. EDA members felt it would be beneficial to have the City
Engineer attend the next EDA meeting to provide a:-, overview of storm water ponding requirements within
the park so the EDA would have a better understanding when reviewing site plans and marketing the
sites.
Director's Report:
An update on the public improvement process for St. Joseph Business Park and the covenants was
provided.
The City received approximately one-half of the tax increment it was scheduled to receive in 2001 for TIF
District 1-3. The City Attorney is assisting to expedite the process to receive the balance due to the City
so the TIF payment can be made to Borgert Products.
Board Member Announcements:
Mayor Hosch reported that he attended a very informative Tax Abatement Session on Thursday, March at
the St. Cloud Technical College. Copies of the slide presentation were distributed to EDA members.
EDA members requested that a letter be sent to Xcel Energy thanking them for the donation to update the
brochure inserts.
Next Meeting
The next official meeting of the EDA was scheduled for Wednesday, April 17, 2002 at 4:00 p.m
Adjournment
Moved by Duetz, seconded by Loso to adjourn. All voted in favor of adjournment, the EDA meeting
adjourned at 5:15 p.rn.
2
ity of St. Joseph
25 College Avenue NW
P.O. Box 668,
St. Joseph, MN 56374 DATE: March 11, 2002
(320) 363-720 I
Fax: 363-0342 MEMO TO: St. :~sep~Economic De\le~ent Authority
CLERK! FROM: Joa~oust & Cynthia Smith-Strack, Municipal Development Group
ADMINISTRATOR
Judy Weyrens RE: EDA Accounts Payable- March, 2002
MAYOR
Larry J. Hosch Background
Attached are a copy of the accounts payable for the Economic Development Authority for
COUNCILORS March, 2002.
Bob Loso
Cory Ehlert Action:
Kyle Schneider Following review a MOTION is in order to approve the Accounts Payable.
Alan Rassier
3
,
L
SIA INVOICE
MUNICIPAL DEVELOPMENT GROUP, INC.
25562 WILLOW LANE
NEW PRAGUE, MN 56071
952-758-7399
FAX: 952-758-3711
mdg@bevcomm.net City of St. Joseph
Attn: Judy Weyrens
City Administrator
PO 668
St. Joseph, MN 56374
.-
Invoice Date 03-31-02 I Payment Terms: 30 days I Customer ID #: ST J01
,
Project: March Economic Development Services - . ,-
See attached detail
Amount: $1 ,100.00 Monthly contract fee
$ 270.00 + 4.5 hrs at $60 per hour
$ 356.24 Mileage: 976 miles x .365
$ 5.61 Lona Distance phone charaes
$1,731.85
. $T otal
Remit To: Municipal Development Group, Inc.
25562 Willow Lane
New Prague, MN 56071
, 0 \- L.\ \QSoo - j;)0
Thank you! We appreciated the opportunity to work with you!
q~ -:Jo~
Principal _
I Check No. I
Date:
'-i
,
.
ity of St. Joseph
25 College Avenue NW
P.O. Box 668,
St. Joseph, MN 56374
(320) 363-7201
Fax: 363-0342 DATE: March 11, 2002
CLERK! MEMO TO: St. Joseph Economic Development Authority
ADMINISTRATOR FROM: C~f~ ~
Judy Weyrens Joanne Foust & Cynthia Smlt -Strack, Municipal Development Group
RE: Request for TIF/MIF Assistance - VicWesUGohman Construction
MAYOR
Larry J. Hosch
Enclosed is a revised schedule for the proposed VicWest project. At the time of this packet
COUNCILORS preparation the final application had not yet been received for tax increment financing or
Bob Loso Minnesota Investment Fund assistance.
Cory Ehlert
Kyle Schneider If this information is received prior to the EDA meeting, the information will be forwarded to EDA
Alan Rassier members under separate cover. The request was included on the agenda in anticipation of
receipt in order to maintain the tight schedule. If information is not received the agenda will
need to be amended to remove this action item.
~S
~
Tentative Schedule for VicWest Project
Target Date Completed
- Pre-application meeting with State of MN for funding Wed. 8-08-01 8-8-02
Pre-application to State of Minnesota for funding Tues. 8-14-01 8-14-02
Pre-application for TIF to St. Joseph EDA Wed. 2-20-02 2-2-02
Pre-application for TIF to St. Joseph City Council Thur. 2-21-02 2-21-02
City Council conducts public improvement hearing on 15th Ave & Elm S1.
Final application requests with required info submitted for State funding
(lOB, Minnesota Investment Fund) and local TIF Tues. 4-09-02
S1. Joseph EDA reviews applications, recommends approval
And authorization of J&M and MDG services Wed. 4-17 -02
S1. Joseph City Council acts on EDA recommendation Thur. 4-18-02
City advertises for bids for street/utility construction- 15th Ave & Elm S1. Thurs. 4-19-02
Notices sent to County and School District (30 days prior to
TIF hearing) Mon. 4-22-02
VicWest or LLC to submit site plan and certificate of survey to City Mon. 4-22-02
For inclusion in Planning packet for lot split.
Public hearing notice submitted to the S1. Joseph Leader
For the TIF Plan adoption and for MIF application submittal Fri. 5-03-02
Planning Commission acts on TIF Plan- consistency with
Comprehensive Plan and approves certificate of survey
For the subdivision of Lot 1, Blk 2, Buettner Industrial Park Mon. 5-06-02
Bid Opening for 15th Ave & Elm Street project and Council action & Thur. 5-1 0-02
Council action on Planning Commission recommendation for lot split
Public hearing notices published for TIF and MIF Fri. 5-10-02
Public hearing held by EDA special meeting followed by Thur. 5-24-02
Council action Goint meeting) approving the TIF District and
Council approval of resolution authorizing submittal of MIF app
TIF Plan filed with the County
MIF Application submitted to the state Fri. 5-25-02
Construction of 15th Ave & Elm Street project begins Mon. 6-01-02
,
15th Ave and Elm Street Construction project is completed Thur. 8-31-02
l£J
.ollege Avenue NW ity of St. Joseph
p.o. Box 668,
St. Joseph, MN 56374
(320) 363-7201
Fax: 363-0342 DATE: April 9, 2002
CLERK! MEMO TO: St. Joseph Economic Development Authority
/"~'j W
ADMINISTRATOR ~',,_... _. _ _.'. h I
Judy Weyrens FROM: Joan· e Foust & Cynthia Smith-Strack, Municipal Development Group
MAYOR RE: St. Joseph Business Park Updates
Larry J. Hosch
COUNCILORS Following are a couple of updates relating to St. Joseph Business Park, for EDA members'
information.
Bob Loso
Cory Ehlert Public Improvements:
Kyle Schneider The City Council conducted a public hearing on the improvements to 15th Avenue NE and Elm
Alan Rassier Street, on March 21, 2002. The Council voted to move forward with advertising for bids for the
extension of Elm Street to Joseph Street and the construction of 15th Avenue NE. Attached for
EDA members' information are preliminary assessments for the affected lots.
Schedule:
Following is an updated schedule for the improvements:
March 19th Advertisements for bids for the public improvements
- May 10th Bid Opening and Council action
June 1 st Construction commences
- August 31st Construction completed
Storm Water Requirements:
At the March EDA meeting, Commissioners inquired about storm water drainage requirements
within St. Joseph Business Park. City Engineer Joe Bettendorf, S.E.H., will be present at the
EDA meeting to provide an overview of storm water requirements and state regulations
impacting this.
No action is required by the EDA.
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,
.ollege AY~nue NW it!} of St. Joseph
P.O. Box 668,
St. Joseph, MN 56374
(320) 363-7201 DATE: April 9, 2002
Fax: 363-0342
MEMO TO: St. Joseph Economic Development Authority
CLERK! Joarì~oust & Cynthia ~h-Strack, Municipal Development Group
ADMINISTRATOR FROM:
Judy Weyrens
RE: Commercial Redevelopment Opportunities
MAYOR
Larry J. Hosch Background:
COUNCILORS At the March EDA meeting, the Commission reviewed a preliminary report which identified
Bob Loso potential f sites for redevelopment along with possible unding sources to assist with future
Cory Ehlert projects.
Kyle Schneider Enclosed is a revised preliminary report including potential sites, estimated market values,
Alan Rassier owership and funding sources, for the EDA's review. A draft copy of a letter is also enclosed for
EDA Commissioner review and input.
Action:
A plan of action should be identified. It is also suggested the EDA share the report and plans
with the City Council prior to sending letters to property owners.
-
-
1\
Potential Redevelopment Sites & Funding Sources
I. Redevelopment Sites.
The downtown commercial business district was reviewed for the purpose of identifying
potential (re)development sites. MDG is compiling a spreadsheet with detailed information for
each lot including: Parcel number, address, owner, lot size, building size, estimated land value,
estimated building value and estimated taxable market value.
The following buildings and lots were noted:
A. Laundromat building (2 parcels)
Address: 13 East Minnesota Street
PID: R 8453870000
Legal Description: SW 64' of Lot 4, Block 10
Owners: Daniel and Margaret Kippley
2001 Market Value Land: $15,000
2001 Market Value Building: $74,100
2001 Total Market Value: $89,100
Pay 2001 Taxes: $3126
Assessments: $194.22
B. Vacant lot adjacent to the Laundromat. At times viewed by MDG Inc., this lot was
not in use. The potential to include all or a portion of this lot with the Laundromat
building adds to the redevelopment potential of the site(s).
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Address: 25 Main Street East (two parcels)
\2-
·
C. American Legion's Storage Garage: (City currently leasing - equipment storage)
Address: 105 MN. Street West
-
ParcellD: R 8453848000
Legal Description: S 133' of Lot 11,
less the West 13' Blcok 8
Owner: John Kuebelbeck
2001 Market Value land: 21,600
2001 Market Value building: $54,000
2001 Total Market Value: $75,600
2001 Taxes: 2,576
Special Assessments: $0
D. Metal building
51
Address: 1231 Avenue NW
PID #: R 8453888000
Legal Description: Lots 4, 5, 6, less
The south 66" of the E 54' of Lot 5
And less the S 66' of Lot 6, Block 11
Owner: Zapp National Bank Co.
Trustee
2001 Market Value Land: $27,300
2001 Market Value Building: $55,200
2001 Total Market Value: $82,500
2001 Taxes: 2,261
Special Assessments; $9.00
13
.
.
E. Knight Builders . ~~h
~0irt\·' .
-
Property Address: 35 College Street PHOTO TO BE
- INSERTED H~E
PID#: R 8453856000 303-Oî " ~
'LV\ \1""'" .
Legal Description: N 1/3 of Lot 6, Block 9 <S.¿ -¿I/OL /'·p1pVVvVvU1j
Owners: Wilco 6 Limited Partnership 'P~~ c ~fI-: ,1P~ìUL
2001 Market Value Land: $15,000 .. .. o'\.3,OÒ~d~t.'t
2001 Market Value Building: $43,100 ~ VO - ,> ß? . ~ r;Ji ()Y'\
, l \'J0vJ~ - 00
2001 Total Market Value: $58,100 cvr' ~
2001 Taxes: $1,540 fJ\(,Ï-VJ~
Special Assessments: $47.52
F. Floral Arts Inc. adjacent home
PHOTO TO BE INSERTED HERE
Address: 307 1st Ave Street
Legal Description: N 1/3 Lots 5,6 and 7, Block 21 S~ 3 - ySlJg
Owners: James & Theresa Kacures ÔJD-t7.Y.~ .
l ~
2001 Market Value Land $ 7,000 ~:r~ .~
2001 Market Value Building: $35,900 ~~~7r
2001 Total Market Value: $42,900 ~ ~. $V'" ~
2001 Taxes: $1,505 . ~O /~~~W~
Special Assessments: $50.52 ~6~~tj§~ ลก~~
G. Home and lots north of Super America wQ~~'
Address: (Owner mailing address: PO 340) g¿~
Legal Description: Lots, 9 and 10, Block 23 Loso Addt.
PHOTO TO BE
Owner: Sunset Properties INSERTED HERE
2001 Market Value Land: $2,470 . ./
S"Lc0-~
2001 Market Value Building: $31,300 --iDr OiG
2001 Total Market Value: $33,770
2001 Taxes:
Special Assessments:
lY
.
.
II. Potential Public Funding Sources to assist with Commercial (Re)
. development
A. Tax Increment Financing - Redevelopment District: Tax Increment Financing is a
tool which allows the use of the increase in taxes resulting from new development to
assist in financing eligible costs within a specific geographic area (TIF District). A few of
the guidelines pertaining to Redevelopment Districts include:
> Maximum life of 25 years
> Site must be "developed" and "substandard" to be eligible as a redevelopment
district
> But-For Test must be met
> Increment collected excludes the existing tax base
> The County calculates the amount of the increment annually.
B. Tax Abatement - Enacted in 1997 by state statues, and amended in 198, 1999, 2000
and 2001, tax abatement is not actually an "abatement" as taxes are actually paid - and
reimbursed. It is similar to TIF but each political subdivision controls its own participation.
Statues regulating the use of tax abatement include:
> The political subdivision expects benefits that at least equal the costs to the
subdivision, or intends the abatement to phase in a property tax increase AND
> The political subdivision finds the abatement is in the best public interest because
it will (1) increase or preserve tax base (2) provide employment opportunities (3)
provide or help acquire or construct public facilities, (4) help redevelop or renew
blighted areas, (5) help provide access to services, (6) finance or provide public
infrastructure, (7) phaseJn property tax increase resulting from a 50% or greater
increase in market value in one year (other than improvements) .
> Maximum amount of property taxes a political subdivision can abate may not
exceed the greater of; 5% of the current year levy or $100,000.
> Maximum duration is 10 years; or 15 years if one political subdivision declines in
- writing.
> A political subdivision may abate the entire net tax capacity of the specific
parcel(s)
> School district losses are not made up by the state
> Abatement does not require the property owner's consent
> Parcels within a TIF district cannot be abated.
> Abatements are outside of levy limits.
> Tax Abatements may be reviewed and modified every 2nd year.
> It is the governing body's responsibility to make the calculation regarding the
specified abatements.
C. Small Cities Block Grant for Commercial Rehabilitation: The Department of Trade
and Economic Development accepts grant applications on an annual basis for their
"Small Cities Development Program". Communities may submit either single-purpose or
comprehensive grant applications to assist with infrastructure projects, commercial
rehabilitation and/or residential rehabilitation. Projects must meet one of three federal
objectives
> Benefit to low and moderate income families (e.g. residential rehabilitation loans
to low income families or assessment abatement to extend utilities to a target
area) or
> Elimination of slum and blight (commercial rehabilitation projects), or
> Solution to an imminent public danger (e.g. failed sewage system or
contaminated water);
City's may apply for up to $600,000 for a single-purpose application and $1.5 million for a
comprehensive application. For commercial rehabilitation, a grant would be provided
to the city in order to establish a low interest revolving loan fund to encourage the
rehabilitation of commercial buildings (ranging from exterior improvements to code
15
.
issues/handicap accessibility, etc). Residential rehabilitation funds could be used for
. rental units in the downtown area.
D. HOME Funds - MHFA: The Minnesota Housing Finance Agency offers HOME Funds to
assist in the construction of new or rehabilitation of existing rental housing units. This may
include rental housing units above first floor commercial space. The HOME Fund
program provides a forgiveable loan to property owners, based on the number of rental
units. If units are rented to individuals/families meeting HOME Fund income
requirements, the loans are forgiven after a five year term.
-
1\.0
·
ity of St. Joseph
25 College Avenue NW
P.O. Box 668,
St. Joseph, MN 56374
(320) 363-7201 DATE: April 9, 2002
Fax: 363-0342
MEMO TO: SL Joseph Economic De'.'¡ment Authority
CLERK.! JO~st & Cynthia S th-Strack, Municipal Development Group )
ADMINISTRATOR FROM:
Judy Weyrens
RE: ' Economic Development Activity Report - March 13-April 9, 2002
MAYOR
Larry J. Hosch Municipal Development Group has been interacting with a number of prospects throughout the
COUNCILORS past month. Following is a summary of activities that have transpired. If you have any
Bob Loso questions on any of these or other projects, please do not hesitate to contact us at 952-758-
Cory Ehlert 7399.
Kyle Schneider Business Prospects have been identified by a project number to protect the confidentiality of the
Alan Rassier businesses.
Project 01-Ä:
The company has been considering the leasing of a newly constructed 67,000 square foot
building in St. Joseph Business Park. The lessee intends to move into the new building in
December of 2002. MDG placed follow-up calls to the company regarding the status of final
application information and offered assista'1ce on March 19th and 25th and April 2nd and April 9th.
The attached revised schedule for the project was prepared and e-mailed to the company. The
company indicated on March 20, 2002 that they are in the process on completing the
applications but it is taking longer than anticipated. The building they are currently occupying
was listed for sale the beginning of April.
Project 01-8:
The company, in 2001, was contemplating a 60,000 square foot addition and had requested
information on financial programs. In January the company contact indicated other projects are
a priority for the company and this project was placed on hold. MDG called and left a message
on March 25, 2002 regarding the status of the project and any assistance the EDA may provide
to assist it in moving forward.
Project 01-D:
This company had initial contact with MDG in the fall regarding their preliminary plans for
expansion. On March 25th MDG placed a follow-up call to check on the status of the project and
any assistance we could provide. The owner indicated they are not yet ready to proceed.
Project 01-E:
This organization is considering the relecation of a facility to another location in the City.
Negotiations on the site were occurring in March. MDG placed a follow-up call and left a
message regarding the status of the site acquisition negotiations on April 9, 2002.
Project 01-F
This project involves the locating of a fast food restaurant in the City of St. Jose~h. MDG spoke
with the realtor on April 9th and will be meeting to tour potential sites on April 1 yI .
Project 01-1
This company is considering the purchase of approximately 5 acres in St. Joseph Business
Park for a 12,000 square foot facility in the spring of 2002. Follow-up conversations were
1"1
.
conducted between MDG and the company on March 20th and 25th and April 2nd and 9th. The
. company was finalizing their plans to hire a contractor, the end of April, and planned to have the
contractor complete their elevation drawings, site plan and building plans. They assured us the
project is moving forward. A revised schedule was faxed to the company on April 2nd and is
attached.
Project 01-N:
This commercial business is considering the construction of a 2,800 square foot facility in St.
Joseph (not in the St. Joseph Business Park). Follow-up calls were placed to the company on
March 21 S\ 25th and April 9th. The company has appointed a 4 person building committee,
which is evaluating the advantages and disadvantages of expanding at their current site (not in
St. Joseph) versus a new building in St. Joseph. The contact requested information on the
estimated market value and taxes for the proposed one-story, wood frame office building. MDG
worked with the Co. Assessor's office and Treasurers Office to obtain this information for the
company. The building committee visited St. Joseph on April 9th to tour the site. The site would
be annexed into the corporate limits.
Project 01-0:
This company was proposing a 30,000 sq. ft building within St. Joseph Business Park. The
project was placed on hold in February. MDG placed a follow up call on April 9th to check on
the status of the project. The contact indicated there is no further movement at this time but they
will contact us when they are ready to move forward.
Project 02-A
This contact called the city looking for a retail space. MDG contacted owners of the building
adjacent to the laundromat and provided the information to the contact. MDG followed up with
the property owners and left message on March 4th and 21st. Property owners have not
responded.
Project 02-B
This contact contacted MDG noting they are looking for a highway commercial site and needed
assistance in compiling demographic data on the city. MDG followed up on March 20th and
April 1 S\ The company has plans to occupy a space in the new St. Joseph Business Center.
The franchise request was approved.
Project 02-C:
This company contacted the city in January regarding potential sites for a 5,000 sq. foot
manufacturing building and possible financial assistance programs. Follow-up conversations
were held on March 25th and 29th. A meeting with two representatives and MDG was held on
April 2nd. They would like one to two acres and project three to five new jobs over the next two
years. They would like a pole type building. Potential sites were reviewed and covenants,
zoning regulations and financial policies were provided to the company. The company also
contacted MDG on April 5th to further discuss guidelines for TIF and tax abatement.
Project 02-D:
This 11,200 square foot multi-tenant commercial building is planned for construction this spring.
MDG provided information on the building to a commercial lead on March 20, 2002. MDG also
placed a call to the owner regarding the availability of space on April 9th.
Project 02-E
This commercial business is looking to expand in City of St. Joseph. They are looking for small
amount of acreage for the construction of a 5,000 square foot facility or the possible purchase
and renovation of the former Tom Thumb building. The initial contact was on February 15,
2002. MDG has had follow-up conversations with the business on March 1 ih, 20th, 26111 and
29th regarding annexation of the Tom Thumb property, estimated utility extension costs
(provided by S.E.H), hook up fees and zoning information.
\'6
i
"
Project 02·F
. This company is planning the construction of a 40,000 sf industrial facility with showroom/retail
space in St. Joseph Township. MDG spoke with company representative several times in
March and on April 2nd. A meeting with the company regarding possible annexation into the city
was held on April 9th.
Project 02-G
This company contacted the city on March 13th requesting information for a possible project in
St. Joseph Township. They inquired about annexation and utility extensions. MDG followed up
on March 215t and April 2nä and provided cost estimates for utility extensions, hook up fees and
trunk charges, as provided by S.E.H. and the fee schedule. The company indicated they would
construct a quality facility and have significant number of jobs at the site.
Project 02·H
This developer contacted MDG on April 2nd and inquired about the Tom Thumb building as well
as other commercial sites which may be available for development. MDG and the developer
met. Information including maps of potential sites, zoning regulations, covenants and
annexation petition were provided. A fo~low-up call was placed on April 9th. Mr. Buettners'
phone number was provided to the developer.
Project 02·1
This company inquired about utility extension estimates to service the Del-Win on March 26th.
Estimates, provided by S.E.H. were provided on April 2nd.
Project 02.J
This business inquired about the availability of approximately 1,500-2,000 square feet for light
industrial purposes on April 9th. The business is currently located in the community in a 800
- square foot space and is in need of additional room for expansion. Possible sites were
discussed, along with the EDA's initiative to identify redevelopment sites.
-
Other:
MDG submitted the required Business Subsidy Report to the Department of Trade and
Economic Development.
The City's application to the DNR Grant for a Welcome Center along the Wobegon Trail in St.
Joseph has passed the initial selection phase of the process. A meeting with the DNR has been
scheduled for April 2nd.
The City has received a $5,000 grant from Stearns Electric to assist with the update of the
Comprehensive Plan.
1,9
,
~
THIS PAGE INTENTIONALLY LEFT BLANK
2-Ò
i
. ity of St. Joseph
. College Avenue NW
P.O. Box 668,
St. Joseph, MN 56374
(320) 363-7201 Date: April 9, 2002
Fax: 363-0342
Memo To: St. Joseph Economic Deve;lopment Authority
CLERK! JO~~ust & Cynthia smfStrack, Municipal Development Group Inc.
ADMINISTRATOR From:
Judy Weyrens RE: TIF 1-3 Update
MAYOR Upon completing the tax increment finance reports for the city in 2001, it was discovered that an
Larry J. Hosch error had occurred at the county for the tax increment distribution for the city's TIF District 1-3.
COUNCILORS The EDA (MDG) has been attempting to work with the County to correct this since that time. The
Bob Loso City Attorney and County have been in contact within the past month regarding this as well.
Cory Ehlert To summarize, the County inadvertently distributed $14,114.79 to the various taxing entities
Kyle Schneider (county, city, school, HRA and watershed district) rather than including it within the distribution for
Alan Rassier TIF District 1-3 to the city. In order to correct this, the county is requesting that each of the taxing
entities repay their portion of the $14,114.79 so it can make this settlement to the city, which in
turn can make its payment to Borgert Products.
In 2001, the City received $4,795.85, which was included in the City's general tax settlement.
The County is requesting a check from the city in this amount. It will be placed in the TIF 1-3
account, along with refunds from the other iÐxing entities, and paid to the City. The County has
requested an actual check in order to create a paper trail, rather than a transfer of funds. This
error has been corrected and should not occur in the future.
Council authorization to approve payment (repayment) to Stearns County for $4,795.85 from the
2001 tax settlement, to be redistributed to the City for 2001 's tax settlement for TIF District 1-3 will
be considered at their meeting later this week. An update will be provided at the EDA meeting.
2-1
r
THIS PAGE INTENTIONALLY LEFT BLANK
ll-
t. -~
-
-
DATE: April 9, 2002
MEMO TO: St. Joseph Economic Development Authority
FROM: Joanne Foust & Cynthia Smith-Strack, Municipal Development Group
RE: Commercial Redevelopment Opportunities
Background:
At the March EDA meeting, the Commission reviewed a preliminary report which identified potential f sites
for redevelopment along with possible funding sources to assist with future projects.
Enclosed is a revised preliminary report including potential sites, estimated market values, ownership and
funding sources, for the EDA's review. A draft copy of a letter is also enclosed for EDA Commissioner
review and input.
Action:
A plan of action should be identified. It is also suggested the EDA share the report and plans with the City
Council prior to sending letters to property owners.
.
.
~ '
Potential Redevell:Jpment Sites & Funding Sources
.
I. Redevelopment Sites.
The downtown commercial business district was reviewed for the purpose of identifying potential
(re)development sites. MDG is compiling a :spreadsheet with detailed information for each lot including:
Parcel number, address, owner, lot size, building size, estimated land value, estimated building value and
estimated taxable market value.
The following buildings and lots were noted:
A. Laundromat building (2 parcels)
Address: 13 East Minnesota Street
PID: R 8453870000
Legal Description: SW 64' of Lot 4, Block 10
Owners: Daniel and Margaret Kippley
2001 Market Value Land: $15,000
2001 Market Value Building: $74,100 - [tI
2001 Total Market Value: $89,100 ._ II J"7;, ~ '/11
Pay 2001 Taxes: $3126 I:J.... . '. ",^n~ tj
Assessments: $194.22 .~.'............'......'.'...,......~...................... _ p v
. .-'.
<·';·';·--.:iI
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- I
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,:"o-.._-,·__.._-_~.
B. Vacant lot adjacent to the laundromat. At times viewed by MDG Inc., this lot was not in use.
The potential to include all or a portion of this lot with the Laundromat building adds to the
redevelopment potential of the site(!;).
~
~··.···'''····I
J¡~.~_~.................- .,. r~-~-<' -. .... .'.
. ";--- -i; _.
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-
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Address: 25 Main Street East (two parcels) 0' v {}.-~
. RtD ~ ~. :~ " ::, (p ~- ð';t~ /\I¡Q~\:Jr\:
uooJ ~vVtt'/I V¥\, . . v" I"S,G ~
DSN/:I MWUj ft>.f'-. KJeSb~ ~t. µ~ Of
tv\ \j Lc~:) i
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. .
C. American Legion's Storage Garage: (City currently leasing - equipment storage)
. Address: 105 MN. Street West
ParcellD: R 8453848000
Legal Description: S 133' of Lot 11,
less the West 13' Blcok 8
Owner: John Kuebelbeck~ %5+ 9>zZ>. '/7.."
-,~\".o
2001 Market Value land: 21 ,600 ~ -r
2001 Market Value building: $54,000 W \ Ó
2001 Total Market Value: $75,600 ~G cJ:6
IJ ., ~ V
2001 Taxes: 2,576 \(ûi ~ ~¡)p
Special Assessments: $0 Vi'- ct' ~
{\~J
-------~~-~------- ----------
\
- -....- l --------------
L ~' ~' '" I '" _
- r=: J~"-:' ,_c. '-'J"~
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D. Metal building
Address: 123 1 st Avenue NW
PID #: R 8453888000
Legal Description: Lots 4, 5, 6, less
The south 66" of the E 54' of Lot 5
And less the S 66' of Lot 6, Block 11
Owner! Za~~ t~ti~~~D.
,.Lu~~e ,....:~ ý\Ç\)1~ _ (\ . .'
B. to}~~';' .
2001 Market Value Land:'$27,300 -' '(t\íJ
2001 Market Value Building: $55,20 k·
2001 Total Market Value: $82,500 'M">~~ ~í'ð- ~i~~ ~ f'\\~'
2001 Taxes: 2,261
Special Assessments; $9.00 ~1Þj;tSI-I1' 1 0ßwY. ~~; jf'J¡,J
-
-
. .
E. Knight Builders WrY
. Property Address: 35 College Street
PID#: R 8453856000
Legal Description: N 1/3 of Lot 6, Block 9
Owners: Wilco 6 Limited partnershiV-'
2001 Market Value Land: $15.~
2001 Market Value BU:r:g:-'$43,1 00
2001 Total Market ~91 e: $58,100
_.-~/
2001 Taxes: ${540
Special ~sments: $47.52
/
./
F. Floral Arts Inc. adjacent home
Property Address: 307 1st Ave Street
Legal Description: N 1/3 Lots 5,6 and 7
Owners: James & Theresa Kacures
2001 Market Value Land $ 7,000
2001 Market Value Building: $35,900
. 2001 Total Market Value: $42,900
2001 Taxes: $1,505
Special Assessments: $59.52 ~
,ov \t .
0/1) ()C. { ~ '~'h~ 0l Çf~ . fj1\G'N'-~~t
~(g ~ c0ìo 't554
, ] . ill9-\!l1 ¿;JJlv
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-
-
. ,
. G. Home and lots north of Super America
1í-f\^ Sw-h~
Address: (Owner mailing address: PO 340)
Legal Description: Lots t. g ,.,,,,)1( Block 23 Loso A~ilion '6-\ ~
~ ,@ w)k- cwWJCihlt
Owner: Sunset Properties C ~ K \0
\}P i'
2001 Market Value Land: $2,470 bIG tD ytÒ
2001 Market Value Building: $31,300
2001 Total Market Value: $33,770
2001 Taxes:
Special Assessments:
.
-
~
. ,
Potential Public Funding Sources to assist with Commercial (Re) development
. A Tax Increment Financing - Redevelopment District: Tax Increment Financing is a tool which allows
the use of the increase in taxes resulting from new development to assist in financing eligible costs
within a specific geographic area (TIF District). A few of the guidelines pertaining to Redevelopment
Districts include:
~ Maximum life of 25 years
~ Site must be "developed" and "substandard" to be eligible as a redevelopment district
~ But-For Test must be met
~ Increment collected excludes the existing tax base
~ The County calculates the amount of the increment annually.
B. Tax Abatement - Enacted in 1997 by state statues, and amended in 198, 1999, 2000 and 2001, tax
abatement is not actually an "abatemenr as taxes are actually paid - and reimbursed. It is similar to
TIF but each political subdivision controls its own participation. Statues regulating the use of tax
abatement include:
~ The political subdivision expects benefits that at least equal the costs to the subdivision, or
intends the abatement to phase in a property tax increase AND
~ The political subdivision finds the abatement is in the best public interest because it will (1)
increase or preserve tax base (2) provide employment opportunities (3) provide or help acquire
or construct public facilities, (4) help redevelop or renew blighted areas, (5) help provide access
to services, (6) finance or provide public infrastructure, (7) phase in property tax increase
resulting from a 50% or greater increase in market value in one year (other than improvements)
~ Maximum amount of property taxes a political subdivision can abate may not exceed the
greater of; 5% of the current year levy or $100,000.
~ Maximum duration is 10 years; or 15 years if one political subdivision declines in writing.
~ A political subdivision may abate the entire net tax capacity of the specific parcel(s)
~ School district losses are not made up by the state
. ~ Abatement does not require the property owner's consent
~ Parcels within a TIF district cannot be abated.
~ Abatements are outside of levy limits.
~ Tax Abatements may be reviewed and modified every 2nd year.
~ It is the governing body's responsibility to make the calculation regarding the specified
abatements.
C. Small Cities Block Grant for Commercial Rehabilitation: The Department of Trade and Economic
Development accepts grant applications on an annual basis for their "Small Cities Development
Program" . Communities may submit either single-purpose or comprehensive grant applications to
assist with infrastructure projects, commercial rehabilitation and/or residential rehabilitation. Projects
must meet one of three federal objectives
~ Benefit to low and moderate income families (e.g. residential rehabilitation loans to low income
families or assessment abatement to extend utilities to a target area) or
~ Elimination of slum and blight (commercial rehabilitation projects), or
~ Solution to an imminent public danger (e.g. failed sewage system or contaminated water);
Cities may apply for up to $600,000 for a single-purpose application and $1.5 million for a
comprehensive application. For commercial rehabilitation, a grant would be provided to the city in order
to establish a low interest revolving loan fund to encourage the rehabilitation of commercial buildings
(ranging from exterior improvements to code issueslhandicap accessibility, etc). Residential
rehabilitation funds could be used for rental units in the downtown area.
D. HOME Funds - MHFA: The Minnesota Housing Finance Agency offers HOME Funds to assist in the
construction of new or rehabilitation of existing rental housing units. This may include rental-housing
units above first floor commercial space. The HOME Fund program provides a forgivable loan to
- property owners, based on the number of rental units. If units are rented to individuals/families meeting
HOME Fund income requirements, the loans are forgiven after a five-year term.
-
. . "
.
April 16, 2002
Property Owner
Address
City, State Zip
Dear Property Owner:
In 2001 the St. Joseph Economic Development Authority (EDA) adopted a Strategic Plan for
Economic Development within the community. Among the goals identified in the plan were:
· Continue to enhance and sustain development activities in the Central Business District;
· Explore financial opportunities that will encourage commercial and industrial development;
and
· Research the feasibility of a downtown parking facility or area.
In an effort to implement to goals and objectives identified, the EDA is contacting owners of various
sites within the commercial districts to obtain input on possible redevelopment efforts. The EDA has
identified your property located at , as a potential redevelopment site. The EDA has
also researched a number of financial programs which may be available to assist with possible
redevelopment projects (see attachment).
The EDA respectfully requests your input on this effort. We would appreciate it if you would complete
the attached form and return it by May 3, 2002 to: Economic Development Authority
. City of St. Joseph
PO Box 668
25 College Avenue
St. Joseph, MN 56374
Or it may be faxed to: Municipal Development Group, Inc.: 952-758-3711.
We appreciate your assistam this project. If you have any questions or would like to arrange a
time to meet to discuss opp n' ies, please feel free to contact us (Joanne Foust or Cynthia Smith-
Strack, Municipal Development Group, Inc.) at 952-758-7399. We are also at the city hall offices
no~r week: a~~eaChed there at: 320-363-7201.
\.Á..n«t: ~ - Gt~ Dr W· f
On behalf of the St. Joseph EDA,
Joanne Foust
Municipal Development Group Inc.
-
--
, . ~
Commercial Redevelopment Questionnaire- 2002
.
Property Address:
Legal Description:
Are you interested in participating in a program to assist in redeveloping the site?
- Yes - No
Would you be interested in selling the site if a developer is interested in acquiring the property for
redevelopment purposes? _ Yes _ No
If yes, asking price ( range): $
Contact name:
Address:
Phone Number (s):
.
Commercial Redevelopment Questionnaire- 2002
Property Address:
Legal Description:
Are you interested in participating in a program to assist in redeveloping the site?
- Yes - No
Would you be interested in selling the site if a developer is interested in acquiring the property for
redevelopment purposes? _ Yes _ No
If yes, asking price ( range): $
Contact name:
Address:
Phone Number (s):
-
-