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Home My WebLink About2002 [05] May 15 if!J of St. Joseph _J College Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-720 I Fax: 363-0342 St. Joseph Economic Development Authority CLERK! Meeting Notice ADMINISTRATOR Wednesday, May 15, 2002 Judy Weyrens 4:00 p.m. City Hall MAYOR Larry J. Hosch 1. Call to Order COUNCILORS 2. Approval of Agenda Bob Loso Cory Ehlert 3. Approval of Minutes Kyle Schneider A. April 17, 2002 Alan Rassier 4. Approval of Accounts Payable 5. Business A. Final TIF Application - Gohman ConstructionNicWest B. Request MIF Assistance - Gohman ConstructionNicWest - C. Request for IDB/Small Business Development Loan - Gohman ConstructionNicWest - D. Commercial Redevelopment Update 6. Director Report A. Prospect List/Activity Report 7. Board Member Announcements 8. Adjournment CITY OF ST. JOSEPH . ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes - Wednesday, April 17, 2002 Present: Bruce Gohman, Mayor Larry Hosch, Bob Loso, Mike Deutz, Ross Rieke (4:10 p.m.) Also present: Joanne Foust of Municipal Development Group and Joe Bettendorf, City Engineer with S.E.H. President Gohman called the meeting of the St. Joseph EDA to order at 4:05 p.m. Agenda: Moved by Loso, seconded by Duetz to approve the agenda as presented. All in favor, the agenda was approved. Minutes: Moved by Loso seconded by Hosch to approve the minutes of the March 20, 2002 EDA meeting as presented. Minutes were approved 4:0. Riecke arrived at 4:10 p.m. Accounts Payable: Moved by Loso, seconded by Deutz to approve the March Accounts Payable in the amount of $1, 731.85. . With all in favor of the Motion the Accounts Payable were approved 5-0. St. Joseph Business Park Updates Joe Bettendorf, City Engineer, was present to provide updates on St. Joseph Business Park. He noted the city has advertised for bids for the public improvements including street and storm sewer in Elm Street and utilities, street and storm sewer in 15th Avenue. Storm water drainage requirements within the park were also discussed. He noted the pond was designed to hold run-off from a 100-year storm. Each site within the park needs to grade its lot to control run off to six cubic feet per second (CFS), as there is a 48- inch outlet which is sized for a 10-year storm. The size of temporary holding areas on each site will be dependent upon the amount of surface coverage on the lot. Each development in the city will have different rates of run-off dependent upon pipe size. EDA members thanked Bettendorf for clarifying this. Commercial Redevelopment A preliminary report containing potential sites for redevelopment along with possible public funding sources to assist with projects was reviewed. EDA members requested the Knight Builders site be removed. They suggested contacting them to see if they have a re-use in mind for the building as they are moving to Indian Hills Business Park. EDA members inquired about the city's interest in the site. Moved by Deutz, seconded by Hosch to direct MDG to send the letter to property owners of the sites identified in the Redevelopment Report, removing a5 College Street and adding the two homes west of Sat's Bar (Snyder) and to continue to identify additional future sites. All in favor, the motion was approved 5-0. - - 1 Project Updates . A report outlining communication with various contacts was included in the EDA's packet. A brief overview of several projects was provided by Foust. TIF 1-3 Update An update on the status of TIF funds for District 1-3 was provided. The county is in the process of collecting the distributed TIF dollars which were inadvertently sent to the school, city and county in 2001. Once received, the county will provide the TIF payment to the city for payment to Borgerts. Board Member Announcements: Gohman noted there may be an opportunity for the EDA to submit the brochure created in 2000 for an award. He requested MDG investigate this. He also inquired about the status of a business park brochure that had been in process early in 2001. He requested MDG check with Elness Design as to the status. Deutz reported that the Chamber of Commerce is working on a beautification project along College Avenue from Co. Road 75 to the south, which includes the installation of streetlights. He inquired if the EDA could assist financially or assist with grant requests to organizations such as Quest, Xcel, Stearns Electric, Astound, US Cable, etc. for the 67 light poles and 20-30 patterns of pavers around the bases of light poles. The light poles will be the same design as the poles along Minnesota Street. The estimated cost is $150,000 for the poles plus $100,000 in other expenses for a total of $250,000. EDA members concurred that this is an important economic development project and requested MDG investigate potential funding sources as this is the gateway to the community. . Deutz also suggested that the ratio of commercial/industrial tax base to residential tax base in St. Joseph be shared with the Chamber of Commerce by MDG as it relates to other communities and goals. He noted this would assist in educating the community on the need for commercial and industrial development. Next Meeting The next official meeting of the EDA may be moved from May 15, 2002 to May 8, 2002, depending upon the receipt of information from VicWest. Notices will be sent. Adjournment Moved by Loso, seconded by Deutz to adjourn. AI/ voted in favor of adjournment, the EDA meeting adjourned at 5:50 p.m. -. 2 ·ollege Avenue NW if!} of St. Joseph P.O. Box 668, St. Joseph, MN 56374 (320) 363-720 1 Fax: 363-0342 DATE: May 2, 2002 CLERK! MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: aV'~ tm~S Judy Weyrens J ne oust & Cynt ia Smith-Strack, Municipal Development Group RE: EDA Accounts Payable- May, 2002 MAYOR Larry J. Hosch Background COUNCILORS Attached are copies of the accounts payable for the Economic Development Authority for May, Bob Loso 2002. Cory Ehlert Kyle Schneider Alan Rassier Action: Following review a MOTION is in order to approve the Accounts Payable. . - - 3 F t{;c r- /l~fJ~£ ¿;-~';J~f7ð'~ . . ...-- "-'. . iff~~::~~:: f~ :~::fW:::.# C ~ :::::::;. ~;:::::::::::;:.. :::::::::::~ :::::::.. ....... ..-...-.....-...~.. ............ ......... ........-........... .... · ..... :....... -. ". ." ..... N..... -. ", INVOICE # ." '.-." ......... -. . ." ...... ......- -. . ...... -.-' -. . ." ~:::: :::::: . · ...... .:-:.: . . · -.". . ". ;.:::::::::::-:::::- -: : 2517 .......-... . :. :::;::"'-::;.;::::: -: : ..- ..... . :. ~:::: - - ::::} -::;::: .~;~;in','Wii~~;;,"i"WWmMi'n;,i;,;"n;'i;} Ii ~, REMIT TO: 1100 9th Aven ue North SOLD TO: City of S1. Joseph Sa uk Rapids, MN 56379-2400 25 N. College Avenue ph: 320-252-8444 St. Joseph, MN 56374 fx: 320-255-9546 elnessdesig n@charter.net ACCOUNT # SOLD BY REFERENCE TERMS INVOICE DATE STJOE-100 M KE Cynthia/Joanne 1 0 days 04-22-02 Quantity Description Unit Price Ext. Price 1.00 Agency fee for revisions to six (6) St. Joseph INSERTS 200.00 200.00 (Includes alterations to text, proof samples, final alts, final proofs, final art to printer) 1.00 PRINT 500 each of 6 inserts 275.00 275.00 b/w on matching stock, 1 side - Sale Amt. $475.00 PAYMENT DUE BY: Terms are net 10 days following invoice date. ! Sales Tax 0.00 May 2, 2002 A finance charge of 1.5% (18% Annual Rate) k YOlt. $475.00 will be charged on all past due accounts. c(hart Total tt s. INVOICE MUNICIPAL DEVELOPMEN1r GROUP, INC. . 25562 WILLOW LANE NEW PRAGUE, MI\f 56071 952-758-739!} FAX: 952-758-3711 mdg@bevcomm.net City of St. Joseph Attn: Judy Weyrens City Administrator PO 668 S1. Joseph, MN 56374 Invoice Date 04-30-02 ! Payment Terms: 30 days ! Customer ID #: ST J02 Project: April Economic Development Services - See attached detail Amount: $1,100.00 Monthly contract fee-28 hrs $ 180.00 + 3.0 hrs at $60 per hour $ 289.45 Mileage: 793 miles x .365 $ 12.68 Film & processing for Redev. report $ 8.92 Lona Distance phone charaes . $1,591.05 Total Remit To: Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 Thank you! We appreciated the opportunity to work with you! /~, ¿'7fÆJ4 ¿ (/f't/ a-. / v / . rt c;.,"' , Principal - Check No. I Date: - 5 . . (0 .ollege Avenue NW DATE: itg of St. Joseph May 8, 2002 P.O. Box 668, St. Joseph, MN 56374 MEMO TO: Economic Development Authority (320) 363-7201 FROM: Joanne Foust & Cynthia Smith~Strack, Municipal Development Group Fax: 363-0342 RE: Request for Tax Increment Financing Assistance - VicWest Steel CLERK! ADMINISTRATOR Judy Weyrens Request: MAYOR A copy of the final application for Tax Increment Financing assistance and supporting financial Larry J. Hosch documents, for the construction of a manuf8.cturing facility which will be leased to VicWest Steel is being sent to EDA members under separate cover as this information is considered proprietary COUNCILORS under EDA statutes. A limited liability corporation is being formed to lease the facility to VicWest. Bob Loso Cory Ehlert Background: Kyle Schneider The project consists of the construction of a 67,000 s.f. manufacturing facility (7,000 sf office, Alan Rassier remaining production) on 10 acres (southern portion Lot 1, Block 2) in the Buettner Business Park (a.k.a. St. Joseph Business Park. The single story facility will be constructed of steel and block materials with ceiling heights will range from 12' (office) to 26' (production). Construction cost is estimated at $2.7 million with an additional $500,000 for overhead cranes and land acquisition costs totaling about $380,000 for a project total of $3.58 million. The building will be leased from the LLC by VicWest. VicWest plans to move into the facility in . December, 2002. The project is expected to create approximately 7 new jobs with wages of $12- $14 per hour. TIF assistance is requested in order to help the project move forward. Without TIF the company· has indicated the lease rate would be cost prohibitive and the project will not move forward. The EDA considered the TIF pre-applicatio:ì at its February meeting. The EDA approved a motion recommending the City Council approve the pre-application and authorize the submission of the final application. The City Council did so at a meeting on February 21 st. TIF Policy: The policies for the use of TIF include the following: 1. General Policy - The project should serve to accomplish the goals for economic development including creation of quality jobs and the attraction of business to the City. The request meets this policy criteria. 2. Objectives: The project meets the objective of increasing the number and diversity of jobs with attractive wages and benefits. 3. Costs that qualify for TIF assistance: The TIF would be used to offset land acquisition including assessments. 4. Minimum Qualifications: a. TIF would facilitate development that would not occur without the assistance. b. But-For Test. The pre-application includes the above statement. Sources and uses of funds would be submitted with the ;¡"al TIF application. c. The project is consistent with the Comprehensive Plan and zoning ordinance. The . industrial park is zoned industrial. d. Prior to approval of the TIF Plan (after final application is submitted), financial guarantees and credentials will be required. Î e. Ownership of the parcel will be required by the applicant. · 5. Desired Qualifications: a. Taxes paid before and after the development will be greater than a 2:1 ratio. Current taxes on the 10-acre parcel are estimated at $1,010. Estimated taxes after the development are estimated at between $40,000 and $50,000. b. TIF should not be used for speculative projects. VicWest Steel is an existing company with an established market. They are not proposing a spec. building. c. TIF should not be used to pay for overpriced land. The EDA has a cooperative marketing agreement with the owner of the industrial park. The land price has been established as a fair asking price. d. TIF should be pay-as-you go. The request is for pay-as-you go assistance. e. Preference is given to projects that do not cause extraordinary demands on City services. VicWest is a leading manufacturer and distributor of metal cladding, roofing and decking. No extraordinary demands on the system are anticipated. f. Preference is given to projects that are consistent with the compo plan, improve surrounding land uses, provide nevI employment, are financially feasible and provide the highest and best desired use for the property. The project appears to meet these criteria. Appropriateness of TIF: Attached is the "Grading and Report Card for TIF". The proposed project received a composite score of '3.6' meaning it is between 'average' (3) and 'very good' (4) use of tax increment financing, or 'good'. Estimated TIF available: Juran & Moody has estimated $282,000 in tax increment available for the project. A complete TIF plan with cash flow will be prepared upon the EDA and Council's approval of development of · the TIF Plan for the district. To summarize the information, tax increments are based on three factors: · Estimated increase in market value - the difference between pre-project and post- project market value as determined by the County Assessor (this is not necessarily equal to project cost) · Tax capacity - Increase in market value multiplied by property tax class rate (Commercialllndustrial property taxed at a rate of 1.5% for the first $200,000 in value and 2% for portions of the value exceeding $200,000) · Net tax capacity multiplied by the City's tax rate - 118.53%. The gross tax increment available is subject to a State Auditor reduction of 0.25% and a City administration fee of 10%. The net annual tax increment is available for use as a financial incentive to development. The net annual tax increment is collected for a finite period of time and includes the school district, county and City portions of new taxes generated. The estimated tax increment cash flow for the VicWest project will indicate a annual net tax increment of $40,000 to $50,000 (estimated total of $400,000 to $500,000 over the lifetime of the district) will be available to encourage development. It is noted these are estimates only. VicWest and Gohman have indicated the TIF application fee and escrow will be paid prior to Wednesday's EDA meeting and official action. Action: If the EDA is supportive of utilizing TIF for this project, a MOTION is in order to approve the pre- application and recommend to the City Council they (1) authorize the services of Juran & Moody, the City's Financial Advisor to prepare the TIF Plan and (2) call for a public hearing on the TIF · Plan. The City Council will be meeting on ív1ay 16, 2002 to take action on the EDA's recommendation. <g .ollegeAVenUeNW DATE: itg Of St. Joseph May 8, 2002 P.O. Box 668, . St. Joseph, MN 56374 MEMO TO: Economic Development Authority . (320) 363-7201 ~~ . 0S Fax: 363-0342 FROM: Joanne oust & Cynthia Smith-Strack, Municipal Development Group CLERK! RE: Request for Minnesota Investment FundAssistance - VicWest ADMINISTRATOR Judy Weyrens Request: MAYOR Vicwest has requested the EDA sponsor an application to the Department of Trade and Larry J. Hosch Economic Development's (DIED's) Minnesota Investment Fund (MIF) for a low interest loan to assist with equipment purchases. CöTINCÏi.oïŒu Bob Loso Enclosed are program guidelines for the MIF Application. The City must be the official applicant Cory Ehlert on behalf of a company. Th~ amount of financing available is dependent upon the number of Kyle Schneider jobs Vicwest creates over the next two years and the wages with benefits that those positions are Alan Rassier paid. For example, ifVicwest creates 7 new jobs at $12 per hour, the City would be eligible to apply for $70,000 in funds (7 jobs at $10,000 per job). The strength of the application is dependent upon a number of factors including the strength of the company, ability of the project to move forward, finances (historical and projected), community statistics and how the project compares with other applications. If awarded, the City receives the funds from the state and in turn makes a low interest loan to the . company (7 to 10 year term and 3 to 4% interest rate- to be set by the city). The city is able to establish a local revolving loan fund and retain the first $100,000 in principal plus any interest for future industrial projects/loans. This is a win-win program for the company and community as the company is able to access low interest loan dollars for equipment and the community is ableto retain funds to establish a local revolving loan fund. Application information: VicWest has supplied a majority of the information (e.g. financial statements, company history, etc) for the application. The EDAlCity would be required to finalize the application, conduct a public hearing on the submittal of the application, establish revolving loan fund guidelines and administer the program. Action: If the EDA is supportive of coordinating the MIF application process for this project, a MOTION is in order to recommend to the City Council they (1) authorize the services of Municipal Development Group, to finalize the MIF Application and (2) call for a public hearing on the MIF application. The City Council will be meeting on May 16, 2002 to take action on the EDA's recommendation. . q ~. . +\~NESOl'· . '1 .- . .. _~ Trade &- Economic DeveloRment Minnesota Investment Fund 500 Metro Square 121 7th Place East St. Paul, MN 55101-2146 USA 800-657-3858 vvww.dted.state.mn.us . Program Purpose: To create new and retain the highest quality jobs possible on a state wide basis with a focus on industrial, manufacturing and technology related industries; to increase the local and state tax base and improve the ec~nomic vitality for all Minnesota citizens. How It Works: Grants are awarded to local units of government who provide loans to assist expanding businesses. Eligible Applicants: Cities, counties, townships and recognized Indian tribal governments. Minimum - All projects must meet minimum criteria for private investment, number of jobs· . Requirements: created or retained and wage thresholds. Eligible Projects: Loans for land, bu.ildings, equipment and training are eligible. Funds may also be used for infrastructure improvements necessary to support businesses . located or intending to locate in Minnesota. l~eHgible Projects:. Working capital, retail business and industrial park development. - Maximum Available: $500,000. Only one grant per state fiscal year can be awarded to a government uni t. . Other Funds At least50% of total project costs must be privately financed through owner Required: equity and other lending sources. Most applications selected for funding have at least 70% private financing. Interest Rate: Negotiated. Terms: Real estate a maximum of 20 years; machinery and equipment a I!1aximum oJ 10 years. Collateral Negotiated. Personal guarantees may be .required. Requirements: Applications On a year-round basis using the Business and Community Development Accepted: application. ~ -over· OOitJ16'sðt- . 10 ',\f[]HLD C[]}\1PETITDH , .. Tentative Schedule for VicWest Project · Target Date Completed Pre-application meeting with State of MN for funding Wed. 8-08-01 8-08-02 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 2-02-02 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 St. City advertises for bids for streeVutility construction- 15th Ave & Elm St. Thurs. 4-19-02 4-19-02 Final application requests with required info submitted for State funding (lOB, Minnesota Investment Fund) and local TIF Tues. 4-09-02 5-01-02 Bid Opening for 15th Ave & Elm Street project and Council action & Thur. 5-19-02 Council action on Planning Commission recommendation for lot split St. Joseph EDA reviews applications, recommends approval And authorization of J&M and MDG services Wed. 5-15-02 St. Joseph City Council acts on EDA recommendation Thur. 5-16-02 And adopts a resolution calling for a public hearing on the TIF Notices sent to County and School District (30 days prior to TIF hearing) Mon. 5-20-02 VicWest or LLC to submit site plan and certificate of survey to City Mon. 5-24-02 · For inclusion in Planning packet for lot split. Public hearing notice submitted to the 8t. Joseph Leader For the TIF Plan adoption and for MIF application submittal Fri. 5-30-02 Construction of 15th Ave & Elm Street project begins Mon. 6-01-02 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. 6-03-02 Public hearing notices published for TIF and MIF Fri. 6-07-02 Public hearing held by EDA special meeting followed by Thur. 6-20-02 Council action üoint 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. 6-21-02 15th Ave and Elm Street Construction project is completed Thur. 8-31-02 · \ \ . . 12- eonege Avenue NW DATE: itg of St. Joseph . May 8, 2002 P.O. Box 668, St. Joseph, MN 56374 MEMO TO: Ec~~omic:J=velopment Authority . .. (320) 363-720 1 Fax: 363-0342 FROM: Jo~n~ust & Cynth~mith-Strack, Municipal Development Group CLERK! RE: Project Financing - Industrial Revenue Bond- VicWest ADMINISTRATOR Judy Weyrens Project Background: MAYOR As a part of the Vicwest project, Gohman Construction (their Limited Liability Corp) may request Larry J. Hosch the City provjde approval of the issuance of Industrial Revenue Bonds. This allows the company to access tax exempt funds. It does not affect the city's debt limits or overall indebtedness. The COUNCILORS ability to issue the bonds are based on Vicwest meeting statutory requirements (e.g. capital Bob Loso expenditure requirements) and their financial strength. Cory EWert At this time Gohman construction is completing an analysis to determine if they would like to Kyle Schneider proceed with the Industrial Revenue Bond or conventional financing. More information may be Alan Rassier available at the EDA meeting. Enclosed is a schedule for the Industrial Revenue Bond process. . Action: No action is required by the, EDA at this time. . - - r~ This calendar of events will be contigent upon VicWest meeting IDB statutory parameters, ) in particular, the capital expenditure ·ceilings. . . ESTIMATED CALENDAR OF EVENTS The following checklist of items to be accomplished by the finance team denotes each milestone, the activity, as well as the members of the finance team who· will have the responsibility to complete it. March -A ril May s M T W T F S S M T W T F S S M'T W T F S 1 2 1 2 3 4 5 6 1 2 3 4 3 4: 5 6 7 8 9 7 .. 8 9 10 11 12 13 5 6 7 8 9 10 11 10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 ·13 14 15 16 17 18 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 24 25· 26 27 28 29 30 28 29 30 26 27 28 29 30 31 31 ~ Date ResDonsible Party ~ . Prior to MarchPrdiniinary discussions/info gathering All ~ 20 Proposals submitted. MJSK ~~ ~29 Selection of Miller Johnson Steichen Kinnard VicWest ) .~ . Wk of 1 Organizational Meeting All Jv..N- n AprifM' Distribute :first draft of documents. Distribute Bond Counsel- Underwriter first draft Preliminary Official Statement. Counsel j\}$'J-"':).fJ Drafting session for:first draft documents and Apri118 All :first draft ofP.O.S. ~~D . 18 Preliminary Resolution adopted by Issuer and All (City of st Joseph) ~ call for Public Hearing . JLl~dlf Distribute 2nd draft of documents and 2nd draft April ~2 Bond Counsel- Underwriter ofP.O.S. Counsel J u,t\Þ 21 ~25 Drafting session for second draft documents All and second draft ofP.O.S ò1AÌy\ ~ril-29" Final comments on document and P.O.S. Alt ~ .~ .~ P.O.S. sent to printer. Underwriter Counsel d37> Submit Blue Sky filings. Underwriter Counsel .-J ,)J~ .3 :ty1ay¥ P.G.S. mailed to customers. Underwriter - ~~~~~?~, . l;:~;f~~ ~'~}Ir; ~t~~~( ~~\j~ ,}::<IN Millef'Jo~on,Btâcheñ'Kinnard \1-\ ..; __.~,~~ .';), ,-(-,: "" .__~,_- \;i0; /" ) Date Responsible Pam . - J;\A¡.~ Initial Public Offering of the Bonds. Wk of y-6 Underwriter J\N~ Yl;-- Receive Blue Sky approval. Underwriter Counsel MayJ,.Ø' ~I"l.-- Sign bond Purchase Agreement. . Underwriter - Issuer y 10 . ~ ,:; 13 Final Draft of Official Statement. Underwriter Counsel '~il Print Official Statement. . Printer ~ 11, 16 Final r~solution adopted by Issuer.. All j"vLJ 1'\ Billings sent to customers. Underwriter .MaY 17 ~~ ~/ Pre-Closing. All ø.2S. ~ Closing. All The issuance schedule shown above is our conservative ,estimate of the time needed to structure, ) document and -close a Fixed Rate - Non Rated -Public Retail Offering. Other finance options TBD would also be able to be completed within this timeframe. It is possible to compress the . timetable and clòse the transaction sooner than estiniated if certain events occur more quickly than shown. ) - Mill~:~~A~:Jf~~;~~~~d r5 . . . . - - 10 ·ollege Avenue NW ity of St. Joseph p.o. Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 DATE: May 2, 2002 CLERK! MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: ~~\~ LL~ Judy Weyrens Joan e Foust & Cynthia Smith-Strack, Municipal Development Group RE: Commercial Redevelopment Opportunities MAYOR Larry J. Hosch Background: COUNCILORS At the March EDA meeting, the Commission reviewed a report which identified potential sites Bob Loso for redevelopment along with possible funding sources to assist with future projects. At the April Cory Ehlert EDA meeting, the Commission reviewed a revised report including potential sites, estimated Kyle Schneider market values, ownership and funding sources and a draft letter to property owners regarding Alan Rassier potential redevelopment. The Commission reviewed the letter and requested it be mailed to identified property owners. The letter and a response form have been mailed to applicable property owners. A copy of the letter and form are attached for your information. Action: . This item is for information only, no action is required at this time. - - (7 . May 1, 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 assistance in this project. If you have any questions or would like to arrange a time to meet to discuss opportunities, 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 one day per week, usually Tuesday or Wednesday, and may be reached there at: 320- 363-7201. 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): . - - \C\ . . '2-0 ·ollege Avenue NW ity of St. Joseph P.O. Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 DATE: May 2, 2002 CLERK! MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: Judy Weyrens Joanne Foust & Cynthia Smith-Strack, Municipal Development Group RE: Economic Development Activity Report - April 9 - May 2, 2002 MAYOR Larry J. Hosch COUNCILORS Municipal Development Group has been interacting with a number of prospects throughout the 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 Alan Rassier Business Prospects have been identified by a project number to protect the confidentiality of the businesses. Project 01-A: 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 assistance on April 22nd. The company forwarded a completed application for Minnesota Investment Fund assistance to MDG on April 29th via fax with the original mailed to the City. MDG contacted the project contractor regarding submission of the final application and fee for Tax Increment Financing assistance on May 1st and May 2nd. MDG contact the Department of Trade and Economic Development regarding the MIF application receipt and Small Business Development Loan on May 1 SI. The project financing package review is currently on schedule. Project 01-1 This company is purchasing approximately 5 acres in S1. Joseph Business Park for a 12,000 square foot facility. MDG spoke with the industrial park owner regarding this project on April 1 ¡th. The land owner and company officials met regarding the project in late April. On May 1 sl the City received required materials for consideration of a lot split of the affected parcel. The Planning Commission will review the request at its May meeting. 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. 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. A meeting regarding financing for the project was set for April 23rd however, company representatives phoned to postpone the meeting on April 22nd. MDG placed a follow-up call on May 2nd to reschedule the meeting. Project 02-F This company is planning the construction of a 40,000 sf industrial facility with showroom/retail space in St. Joseph Township. On April 22nd the Company appeared for a second time before the Joint Annexation Advisory Committee regarding a rezoning request. The request was - subsequently denied. The City received a phone call on April 23rd from Company - representatives reaffirming their commitment to the developing site in the township and will now approach the County for approval. ~ . 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 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. On April 16th the development prospect contacted the City and indicated a desire to proceed with the project and annexation petitioning. Property adjacent to the proposed site is primarily owned by a partnership. Partnership representatives were contact~d and a meeting was held on April 23'd regarding extension of utilities to the area. The partnership indicated several options in order of preference: to not proceed with utility extension; to proceed with utility extension provided assessments were deferred; to seek a bu~er for the entire group of parcels whether the buyer is the City or a private entity. On April 29 the company representative contacted MDG regarding the authorization of the drafting of a feasibility study for the utility extension. MDG indicated the Council authorized the preparation of the feasibility report. On April 30th the company representative contacted MDG on several occasions regarding the submission of a petition for annexation. The City has received the petition for their consideration. It is noted the proposed location is within the 6-10 year annexation area. 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 follow-up call was placed on April 9th. Mr. Buettners' phone number was provided to the developer. The developer called the City on 4-23 indicating desire to begin preparing for remodeling and seeking additional information regarding site annexation. Developer was given Township Clerk's name and number as he is not ready at this . point to petition for annexation. Developer does indicate a desire for public utilities in the near future. Project 02-K The prospect contacted MDG on April 25th and requested information on St. Joseph including population, average household income, growth information, major employers, etc. She is considering opening an optometrist business in St. Joseph. A letter was mailed with the demographic/community information requested along with a brochure and map of St. Joseph on April 26th. Project 02-L The prospect contacted MDG on April 29th regarding the redevelopment of a former used car lot. Prospect requested information on the current property owner. Other: MDG completed a grant application to the Initiative Foundation for assistance in updating the City's Comprehensive Plan. 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 was held on May 2nd. At the April EDA meeting, Commissioner Deutz reported that the Chamber of Commerce is working on phase two of a City beautification project. Phase one was the installation of decorative lighting along Minnesota Avenue. Phase two of the project includes installation of lighting along College Avenue from Co. Road 75 south to 295th Street. Phase two of the project is in the initial stages. Project cost estimates vary at this time. At the April meeting, - Commissioner Deutz inquired if the EDA could assist financially or assist with grant requests to organizations such as Quest, Xcel, Steaf'lS Electric, Astound, US Cable, etc. EDA members - concurred that this is an important economic development project and requested MDG ?;-d- investigate potential funding sources as this is the gateway to the community. MDG has . contacted Chamber President Mr. Peter Omann and the project's Chamber coordinator Mr. Greg Reinhart regarding the outreach effort. Mr. Reinhart has indicated this phase of the project is in its very initial stages. He also indicated he is in the process of putting together a report on the project including project history, cost estimates, etc. for the next Chamber meeting. MDG is in the process of drafting a letter to the utility companies regarding participation in funding the project. Information from the report issued by Mr. Reinhart will be incorporated in the letter prior to distribution. MDG followed-up on the possible entry of the city brochure in an awards contest. The award is sponsored by the Economic Development Association of Minnesota (EDAM) and is for projects between June 2001 and the present. The development of the brochure began in 1999. . - - r;}J . . ~~