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Home My WebLink About2002 [09] Sep 18 . .. itg of St. Joseph -'5 College Avenue NW P,O, Box 668, St, Josèph, MN 56374 (320)363-720 I FaX: 363-0342 St. Joseph Economic Development Authority, CLERK! Meeting Notice ADMINISTRATOR VVednesday, September 18,2002 Judy Weyrens 4:00 p.m. City Hall MAYOR Larry J, Hosch 1. Call to Order COUNCILORS Bob Loso 2. Approval of Agenda Cory Ehlert Kyle Schneider 3. . Approval of Minutes Alan Rassier a. August 21 2002 4. Financial Report a, Approval of Accounts Payable b. Budget 2003 Update 5. Business . a. Tax Increment Financing Guidelines/Report Card b. Business Subsidy Policy Revision. _ c. Comprehensive Plan - Economic_ Development Chapter 6. Director Report a. Prospect List! Activity Report b, MCCF Update 7. Board Member Announcements 8. Adjournment . ~t\ .)\ t: (S' ':> ,{\ VI \ \~p"~ . p.l ~,y" , . S~~ . -' \ -X 11'V ð- r..<'J J (r /\ (\ ~{ ~ . CITY OF ST. JOSEPH )r..o\~\j f~ -,\0 ß ~ - ECONOMIC DEVELOPMENT AUTHORITY O'-"~{~- .. <ù \~ «,\{'a; ,Q. - Meeting Minutes - Wednesday, August 21, 2002 ? ,,0 1?15 '/,' i I ~ ~ r{P \> ' \~ ! ~ Present: EDA Board Members Ross Rieke, Larry Hosch. Bob Loso and Mike DeutzÎ Chairman Bruce y\)-ð" Gohman (4:20 p.m.) \), ~~\ ~' \'.0' ,,/F Also present: Cynthia Smith-Strack of Municipal Development Group. Deary Wick, OutsourceJv Management Group. Duane Schultz, President Winkelman Construction. Jeff Thoennes, President Lakeville Motor Express (4:15), and Jerry Hettwer, Hettwer Realty (4:18 p.m.) Vice Chair Hosch called the meeting of the St. Joseph EDA to order at4:06 p.m. Agenda. Requested addition: Revolving Loan Fund policy and pre-application. Recommended re-organization: item 5{e) - Lot split, site and building plan approval for Lakeville Motor Express moved up to first item under "Business." Recommended tabling items 5(a)- TIF Guidelines and 5{b) - Business Subsidy Policy until the next regular EDA meeting. Moved with proposed changes by Loso, seconded by Rieke. The agenda was approved 4:0. Minutes. Moved by Loso seconded by Hosch to approve the minutes of the July 17, 2002 EDA meeting as presented. Minutes were approved 4:0. Moved by Loso seconded by Hosch to approve the minutes of the July 25, 2002 Special EDA meeting as presented, Minutes were approved 4:0. . Accounts Payable. The EDA discussed accounts payable. Moved by Rieke, seconded by Loso to approve the July Accounts Payable. Accounts payable were approved 4--0. Lot split, site and building plan approval - Lakeville Motor Express. Strack provided an overview of the site pan and requirements of the Declaration of Covenants, Conditions and Restrictions for the St. Joseph Industrial Park and where potential inconsistencies existed. Among topics discussed were: 1, The Developer's need to submit topographical drawings to the City Engineer for approval. 2. The Developer's need to submit evidence that the architectural metal proposed has a 20-year color-fast warranty from the manufacturer. 3. The Developer must ensure frost footings are eight inches above the final grade. 4. The Developer shall feature a stucco exterior on the office portion of the facility facing CSAH 133. 5. Screening for the refuse container shall be a minimum of five feet in height and constructed of brick, stone, decorative concrete material or durable material (e.g. screened chain link with a latched gate for the fourth side). Chairperson Gohman arrived at the meeting at 4:20 p.m. Further discussion centered around whether or not truck terminal parking was considered outdoor storage. Consensus of the EDA was that specifically truck terminal parking was not considered outdoor storage provided the trucks are moved offsite within 72-hours. . 1 I . Motion Rieke, second Deutz to recommend the City Council approve the sffe and building plan subject to conditions 1-5 noted above and recommending (a) the benn identified in the plans be four feet in height (as opposed to the three feet proposed), 1) the trees depicted on the site plan be rounded near the stonnwater pond at the intersection of 1 Avenue and CSAH 133; and, (c) the proposed fence be relocated and slatted from the northern property line to the building and from the building to the tree line. Motion approved 5:0. Strack then explained the Developer's proposed a lot split of Lot 1, Block 2 Buettner Business Parle The Developer's are proposing the construction of the Lakeville Motor Express facility on the northern-most 6.34 acres of the subject parcel. The proposed lot split leaves a three acre parcel between the St. Joe Development and Lakeville Motor Express parcels. The covenants indicate the minimum lot size is three acres. Motion Rieke, second Hosch to recommend the City Council approve the proposed lot split as required by the Buettner Business Park covenants. Motion approved 5:0. It was noted the EDA review of the covenants, conditions and restrictions for the Buettner Business Park did not constitute a review of the requirements of the Zoning Ordinance. EDA recommendations will be forwarded to the City Council for review at their September meeting. Commercialllndustrial Zoning Standards. Strack reported the comments of the EDA relative to commerciallindustrial zoning classification standards were forwarded to the City Attorney's Office for inclusion in a draft. Follow-up phone calls and emails were placed. The Attorney's Office has not yet prepared a draft for review. - Motion Hosch, second Loso to table this item for discussion at a special meeting prior to the September - 9, 2002 Planning Commission meeting. The Special Meeting will be organized at the Ü1ne of completion of the draft zoning classffication standards. Motion approved 5:0. EDA Budget. Strack provided an overview of the City's budgeting process. The EDA is a separate political entity, for that reason and for ease in tracking expenditures, a separate fund (Fund 150) is being created for 2002 rather than including EDA expenses in the General Fund, Copies of the proposed EDA budget for 2003 were distributed. The proposed expenses total $38,000, a $3,600 increase over the 2002 budget Motion by Hosch, second by Rieke to approve the proposed budget with the following changes: 1. Fund 150 line items 303 (Engineering Fees) and 304 (Legal Fees) be included in line 300 (Professional Services). The total budgeted amount in line 300 (Professional Services) be increased to $23,100. 2, Fund 150 line item 340 (Advertising) be increased to $1,000 (from $500), 3. Fund 150 line item 587 (Special Projects) be increased from zero to $500. Motion approved 5:0. Strack then indicated MDG is recommending the City move tax increment revenues and expenditures from the General Fund to separate funds for each TtF District and segregating TIF revenues and expenditures for each district as it will assist in ensuring compliance with TIF reporting and the TIF plans. . 2 '7- , . . · Motion by Rieke, second Hosch to establish separate funds for each TIF District, subject to approval by the City's Auditor. Motion approved 5:0. Commercial Redevelopment. Strack provided an update on the commercial redevelopment project and requested further direction. The EDA indicated they would support a commerciaVresidential rehabilitation application to DTED's SCDP in the future, possibly in 2003. The EDA also favored the pursuit of a commercial rehabilitation project to drive the establishment of a redevelopment TIF District which would include rehabilitation sites previously identified. Revolving Loan Fund Policy/Pre-appllcation. Strack distributed proposed Revolving Loan Fund policies/pre--application to EDA members. The Department of Trade and Economic Development requests the establishment of the policy in conjunction with the St. Joe Development, LLC Minnesota Investment Fund grant to the City (loan to St. Joe Development, LLC). The proposed policy was reviewed. Motion by Rieke, second by Loso to approve the RLF policies provided technology upgrades were added to the list of eligible projects/activities. Motion approved 5:0. Project Updates. A report outlining communication with various contacts was included in the EDA's packet. A brief · overview of several projects was provided. Comprehensive Plan Business Meeting Report. A report outlining results from a meeting with business leaders held on August 1, 2002 in conjunction with the updating of the City's Comprehensive Plan was included in the EDA's packel A brief overview of meeting highlights was provided. Board Member Announcements: None. Next Meeting The next official meeting of the EDA is scheduled for September 18. 2002. Adjournment Moved by Deutz, seconded by Rieke to adjourn. AI/ present voted in favor of adjournment, the EDA meeting adjourned at 5:57 p.m. · -- -~---------~------- --- ..-. 3 'J ...) , . - 'COllege Avenue NW ' ity of St. Joseph P,o. Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 DATE: September 9,2002 CLERK! MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: JO~ & Cynthia S~Strack, Municipal Development Group Judy Weyrens RE: Financial Report MAYOR Larry J, Hosch Background COUNCILORS Accounts Payable 2002: Bob Loso Cory Ehlert Attached are copies of the accounts payable for the Economic Development Authority for Kyle Schneider August, 2002, These include a TIF Payment to Borgert Properties/SKN Properties, an invoice Alan Rassier from MDGlnc. and approval of a purchase of a computer for the Economic Development Office. Funds for the computer purchase were included in the 2003 budget. The administrator has indicated the EDA may purchase at this time with administration funds and reimburse the account after January 1, 2003. Action: Following review a MOTION is in order to approve the Accounts Payable. . 2003 Budget Update: At the August meeting, the EDA approved a preliminary budget for 200.3. The City Council since then has met to discuss the various funds of the City's budget, including the EDA's, The Council reduced the EDA's proposed budget by $8~500, The Council discussed the value of the , annual membership to The Partnership, which is $8,500 for 2003. . 5' T'"" "! "<t N N.. 0::> Eß- 0 0 0 Eß- II!.. rc .... D D . = L- a II II m - N ú] 0 ú] - 0 ..3 ('f') - D"" ex:> - D c Q) D"" E >. .... ro D- D"" Ll- D I- a: II II 0 - 0 Z LU ~ > v' .~.. [\- - ('I') r1"I Œ)' [\- (J)' 1.0 ..- e_ N 0: :z .... """ ::r ..~ r1"I N ' ""0.. D N.. 'EO): £ CO ~ Eß- a... "(\')'c.. ...,xQ)·, :I: L..: 'O(J) 0.. Q)ma W 0'>: . ..-:') CJ) 'L.. øO(~ 0 œD... (f)' J ¡...: Cf)w u.º .wa: 0 .~. Iw O·.~ 1"-0 >-- ·'~··Oa: lL ' !:: (0 Cì.I"-OO 0 j ~Pct; 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 09-03-02 I Payment Terms: 30 days I Customer ID #: ST J02 Project August Economic Development Services and Planning Consulting Services- See attached detail EDA =$2,367.23 Planning Review =$450 Amount: $1,100,00 Monthly contract fee-28 hrs $1,365.00 22.75 hrs at $60 per hour $ 352.23 Mileage: 965 miles x .365 $2,817,23 Total Remit To: Municipal Development Group, Inc, · 25562 Willow Lane New Prague, MN 56071 - Dates-EDA and Planning August 1, 2002 Office hours 7.25 hrs. C.Strack August 8, 2002 Office hours 7,00 hrs. C,Strack August 13, 2002 Office hours & Plan Review 7.00 hrs J, Foust & US Army Plan Review, 1.00 hr, J. Foust August 14, 2002 Plan Reivew LME & Army 2,50 hrs, C. Strack August 21, 2002 Partnership, Office hrs & EDA 10,00 hrs, C. Strack And Plan Review LME & US Army 4.00 hrs J, Foust August 23,2002 Proposal to DTED, EDA minutes 4,00 hrs. C. Strack August 27,2002 Office hours 8.00 hrs. J, Foust Thank you! We appreciated the opportunity to work with you! C~~~ Principal I Check No. I · Date: 1 RUG 30 2002 15:08 KLN 3206568970 p. 1 .. . . Quotation KLN Distributing, INC. 1136 Kuhn Dr. St. Cloud, MN 56301 PR.: (320) 654-1123 Fax..: (320) 656-8970 Name :CITY OF ST. JOSEPH Address . . City, Sf, Zip :ST. JOSEPH, MN 56378 Phone Number: (320)363..0406 Fax Number : (320)363-0342 Contact ,:Judy W. Quote Date :8130/02 Quote expires :9/20/02 The following is a price quote for the hardware, software and/or services listed below; Qtt Description Unit Cost Total Cost 1 P4 MID TOWER 1.8 Ghz CPU & FAN . 256 MEG RAM, 40 GB HD, t.44FD, EXTREME VIDEO, SOUND & SPKS, 52X CD-ROM, KYBRD & MOUSE, NIC 10/100, WIN 2000 $ 955.00 1 1511 SVGA CLRLCD MONITOR 398.00 - t~ì 3'53.00 , Authorized Signature Date . B '" 25 College Avenue !\TW ity of St. Joseph. EO, Box 668, 51. Joseph, MN 56374 (320) 363-7201 Fax: 363·0342 DATE: September 3, 2002 CLERK! MEMO TO: St. Joseph Economic Development Authority AD~!INISTRATOR FROM: Joan~}gust & Cynthia smihí!árack, Municipal Development Group Judy Weyrens RE: Tax Increment Finance Guidelines/Report Card MAYOR Larry 1. Hosch Background At its May, 2002 meeting the EDA requested MDG review and make suggestions relative to the COUNCILORS revision of the City's TIF Guidelines/Report Card, Bob Loso Cory Ehlert The EDA began reviewing proposed modifications at its July 17, 2002 meeting. The review will Kyle Schneider continue at the September 18, 2002 meeting. Alan Rassier Attached is a summary of wages and jobs within the St. Cloud Metropolitan Statistical Area (includes all of Stearns County and a portion of Benton County), The summary is provided for your review prior to addressing wage issues in both the TIF Report Card and the Business Subsidy Policy. Attached is a revised copy of the "TIF Proposal Rating Policy". Please note strikethrough text indicates proposed deletions, italicized text provides information to you while reviewing and . double underlined text indicates proposed new language. 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Ratio of Private to Public Investment in the Project: Grade Score: Private Funds/TIF $ Private Investment $5:1 A 5 $ TIF/Public Investment 4:1 B 4 $ Ratio of Private/Public Financing 3:1 C 3 2:1 D 2 Below 2:1 F 1 2. New jobs created and retained in the City: Grade: Score New employees in St. Joseph as a result of the project. 50+ A 26+ = 5 - 25+ B 11-25 = 4 - Jobs retained in St. Joseoh as a result of the oroiect. 15-'- C 6-10 = 3 <15+ D 1-5 =2 - Total number ofjQbs cr¥~~<!~!l.til'~<l.ÌI!.ed, Non@ F None = 1 3. Ratio of City Financing to new jobs created: Grade: . $ TIF assistanc@ requested $8,000 or less per job ^ ..... 1'1@)1/ jobs 0!@at@d $10,000 or l@ss per job B $ TIF/Job $12,000 or less p@r job C $15,000 or less per job D Mor@ than $15,000 F This standard is proposed for deletion because it does not appear to be functional in a community the size of St. Joseph. If a project generates $550,000 in tax increments, according to this standard, the project would need to create 70 jobs to receive an "A - Excellent" rating; 55 jobs to receive a "B - Very good" rating; 45 jobs to receive a "C - average" rating or 36 jobs to receive a "D - below average" rating, This is a very difficult standard to implement in a community of 5,000 population, in close proximity to an urban growth center (St, Cloud) with significant development costs, '1. Pay Level of Jobs: Grade: Pay Range tf of Employees in Range Total Wages Grade $-15,000/)'r or more ^ 4... $35,000/)'r or more B $30,000/)'r or more C $20,000/)'r or more D L@ss than $20,000 F Total 'Nages _ / tt of employees (FTE) _ - Average wage $ This evaluation point is proposed for deletion because job creation and minimum wage floors are e mandatOlY in the City's Business Subsidy Policy which is required by state law, Per statute, we will soon \\ ~ · be implementing minimum wage floors for subsidy which include an actual dollar amount or a calculation which arrives at an actual dollar amount for the minimum wage requirement, This evaluation point also appears to be non-functional in a community the size of St, Joseph. According to this standard currently, the new jobs created must average $21,63/hr, to achieve an uA - Excellent" rating; $ J 6, 83/hr to achieve a uB - Very Good" rating; $14.42/hr, to achieve a "C- Average" rating or $9. 61/hr. to achieve a uD_ Poor" rating. 5. Increase in Real Estate Estimated Market Value: Grade: SooFe $ Estimate market value of site after development Before/After Development 1:5 A 5 $ Estimated market value of site before development 1:4 B 4 1:3 C 3 Ratio of value before/after development 1:2 D2 1:1 F 1 Bonus Points . The project adas vak1@ to the neighborhood aRd/or busim~ss community 2 points and adheres to the Comprehensive Plan. a Th@ d@'!@lop@r agrees to the Pay as you go fmancing. 1 point . The proposed project will redevelop a previously contaminated or 2 points environmentally challenged site, · . Mixed use proj@ct bonus 2 points Total Bonus Points Available 2 points PROPOSED ADDITIONAL STANDARDS: 1. The proposed development is consistent with the City's long term development and redevelopment guidelines as contained in the City's Comprehensive Plan. YES (5 points) NO (0 points) 2. The Developer agrees to pay-as-you-gO financing? YES (5 points) NO (0 points) 3. There is a demonstrated need for the commercial/industrial development within the City of St. Joseph. YES (5 points) NO (0 points) Total Points Scored /6 = average score. · 5 = Excellent. 4= Verv Good. 3 = Average. 4 = Below Average. 5 = Fail rL . PROJECT REPORT C.ARD Question Grade Points 1. A. ExeBllent 5 R Vc!.')' GÐÐd 4 2, C k·erage 3 D Re!-ew Average 2 3, T7 Fail I . . 4, 5, BONUS Pei.N!s TOTAL POI,IIlTS /5 GPA . . 13 > · · · \~ itJj of St. Joseph. 25 College Avenue NW P,O, Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 DATE: September 3, 2002 CLERK! MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: J~1~ l~~ Judy Weyrens Joanne Foust & Cynthia Smit -Strack, Municipal Development Group RE: Business Assistance (Subsidy) Policy Update MAYOR Larry J, Hosch Background The EDA began reviewing proposed modifications to the TIF Grading and Report Card at its COUNCILORS July 17, 2002 meeting. Since the Grading and Report Card is closely tied to the Business Bob Loso Assistance (Subsidy) Policy which is required to be updated per State Statute, it was Cory Ehlert recommended the EDA review a revised Business Subsidy Policy at its next meeting. Kyle Schneider Alan Rassier The review of the revised assistance policy will occur in conjunction with the review of the report card at the August 21, 2002 meeting. A survey of area communities indicates wage floors of: Avon: No wage floor or business assistance guidelines Cold Spring: Each project is evaluated on a case-by-case basis Rockville: No wage floor or business assistance guidelines . Sauk Rapids: Wage floor $12.25/hour, excluding benefits Sartell: Wage floor $13,25/hour, including benefits (adopted July, 2002) Waite Park: _ No response The state of Minnesota Department of Trade and Economic Development requires a minimum of $9 per hour, excluding benefits, for eligibility for the Minnesota Investment Fund. Additional funds are available if the employer pays over $11 per hour, excluding benefits. This is a state- wide wage guideline. Attached is a proposed business assistance policy and a copy of the City's current policy, Comments from the City Attorney have been incorporated. Action: Input is requested. No formal action is required at this time, however formal adoption will be requested at a future meeting, e 15 , . ~ CITY OF ST. JOSEPH 21 First Avenue NW Business Subsidy Poticy P,Q. Box 668, City of St. Joseph, Minnesota St Joseph,MN 56374 (320) 363-7201 This Poíicy is adopted for purposes of the Business Subsidies Act (the uAcq, which is Fax: 363-0342 Mínnesota Statutes, Section 116J.993 to 116J.995. Terms used in this Policy are . intended to have, the same meaning as used in the Act, and this Policy shall apply only with respect to subsidies granted under the Act if and to the extent required thereby. While it is recognized that the creation of good paying jobs is a desirable goal that MAYOR benefits the community, it must also be recognized that not an projects assisted with Kenneth J. Hiemenz subsidies derive their publíc purpose and importance solely through JOb creation. In addition, the imposition of high job creation requirements and high wage level may be unrealístic and counter-productive in the face of larger economic forces and the financial 21ÆRKI and competitive circumstances of an individual business. AnMINISTRATOR Cari Schmidt WIth respect to subsidies, the determination of the number of jobs to be created and the wage level thereof shall be guided by the following principals and criteria: :OUNCILORS 1) Each project shall be evaluated in a case-by-case, recognizing its importance Bob Loso and benefit to the community from all perspectives, including created and Cory Ehlert retained employment positions. .it iedenfuer . 2) If a particuíar project does n.of involVe the creation ofjobs, bUt is nonetheless found to be worthy of support and subsidy, it may be approved without any specific job or wage goals, as may be permitted by applicable law. 3} In cases were the objective is the retention of existing jobs, the recipient of the subsidy shaH be required to provide reasonable demonstrable evidence that the loss of those jobs is imminent. 4} The setting of wage and job goals must be sensitive to prevailing wage rates, local economic conditions, external economic forces over which neither the grantor nor the recipient of the subsidy has control, the individual financial resources of the recipient and the competitive environment in which the reèipierit's business exists. 5) Because it is not possibJe to anticipate évery type of project which may in its context and time present desirable community building or preserVation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy. Adopted by: .~ . Date of Adoption: \0 -~ \ - ~q Date of Public Hearing:~ -d- \ - <\ C\ l~ . BUSINESS ASSISTANCE POLICY CITY OF ST. JOSEPH, MINNESOTA Section 1: Purpose The purpose of this policy is to establish the City's standards with regard to business assistance. The City supports the concept of public/private partnerships as a means of: encouraging continued economic diversity; maintaining a viable tax base; expanding existing business and industry; attracting quality and compatible business and industry; enhancing and retaining employment opportunities; and, maximizing the return on municipal investments such as infrastructure, utilities and services. The standards herein are required by and in compliance with Minnesota Statutes 116J.993- 995 as amended. Section 2: Definitions For the purposes of this policy, terms herein not specifically defined shall have the meanings given to them in MN St. 116J993. A. Benefit Date means the date that the recipient receives the business assistance (e.g. when equipment put into service) (e.g. when improvements are finished or a business occupies the property). B. Business Assistance means a state or local government agency grant, . contribution or personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially ayailable to the recipient, any reduction or deferral of any tax or any fee, any financial guarantees or any preferential use of government facilities given to a business. Exceptions to this standard include those identified in MN. Stat. 116J.993, Subd. 3 items 1-18. Section 3: Eliqible Business Assistance Uses The City may consider business assistance to support private development in circumstances where the proposed project meets a minimum of one of the following uses and new and retained full-time equivalent positions are paid no less than 90% of the median wage in the St. Cloud Metropolitan Statistical Area for the applicable job classification or $11.00 per hour (excluding benefits) whichever is higher. A. To redevelop blighted or under-utilized areas of the community. B. To encourage redevelopment in the City's commercial and industrial areas to stimulate high levels of property maintenance and private reinvestment in those areas. C. In conjunction with another business assistance use as provided for in this section to increase the tax base. . )1 , D. To retain jobs wherein job loss is imminent and demonstrable. . E. To increase the number and diversity of the employment base. F. To encourage additional unsubsidized private development in the area. G. To offset increased costs of redevelopment (Le. contaminated site clean-up), over and above those costs that a developer would normally incur. H. To facilitate the development process and to achieve development on sites which would not be developed without this assistance. , To meet other uses of public policy including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc. Section 4: Assistance Aqreement A. A recipient of a business assistance must enter into an agreement with the grantor of the assistance that includes: 1, The amount and type of assistance. The type of district if assistance is tax increment financing. A list of financial assistance by all grantors for the project. 2. A statement(s) of public purpose (from Section 3), including a . statement of why the assistance is needed. 3. Goals for the assistance, including but not limited to, wage goals for the number of full time equivalent jobs created or retained within two years of the benefit date. 4. A statement as to the recipient's obligation if the recipient does not fulfill the agreement. At a minimum the agreement must require a recipient failing to meet assistance agreement goals to pay back the assistance plus interest to the grantor provided that repayment may be prorated to reflect partial fulfillment of goals. 5, The name and address of the recipient (and parent corporation where applicable) and, a description of the financial obligation of the recipient if the goals are not met. 6. A commitment to continue operations at the site where the assistance is used for at least five (5) years after the benefit date. 7. A statement as to the proposed project's compliance with the City's Comprehensive Plan. 8. A statement as to the recipient's annual reporting requirements. B. Business subsidies in the form of grants must be structured as forgivable loans. Business subsidies not structured as a forgivable loans, must include a statement as to the fair market value of the assistance to the recipient, including . the value of conveying property at less than a fair market price or other in-kind benefits to the recipient. )~ , · C. If a business assistance benefits more than one recipient, the grantor must assign a proportion of the business assistance to each recipient that signs a assistance agreement. D. All grantors and recipients must be authorized to execute the assistance agreement and the agreement must be executed. Section 5: Process A. As soon as possible development prospects seeking a business assistance should meet with EDA staff members to discuss the project, the public purpose for the assistance, proposed uses of the assistance, why the assistance is needed, goals for the assistance issuance and, materials required to process the request for assistance (e.g. historical and projected financial reports, proposed project financing including a demonstrable gap, evidence of ownership of property where applicable, appraisals, site information, the ability of the recipient to repay the assistance if goals are not achieved and other information deemed necessary to process the request). B. The EDA shall consider evaluate and make a recommendation to the City Council regarding a request for business assistance. C. If the amount of the requested assistance exceeds $100,000 the City shall hold a public hearing before granting or denying the request. · D. The City and the recipient shall enter into a Business Assistance Agreement. Section 6: Reports A. Reports by Recipients to Grantors. A recipient shall report information regarding goals and results for two years after the benefit date or until the goals are met, whichever is later. If goals are not met, the recipient must continue to provide information on the assistance until the assistance is repaid. The information must be filed on forms provided by the grantor and filed with the grantor no later than March first of each year and within 30 days after the deadline for meeting job and wage goals. If the recipient does not submit its report, the local government unit shall mail the reCipient a warning within one week of the required filing date. If within 14 days a report is not provided, the recipient shall pay the grantor a penalty of $100 for each subsequent day the report is not filed to a maximum of $1,000. S. Reports by the Grantor to the State. The City shall file a report by April first of each year with the State Department of Trade and Economic Development regardless of whether or not the City has awarded any business subsidies. · I~ , . . ity of St. Joseph 25 College Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-720 1 DATE: September 10, 2002 Fax: 363·0342 MEMO TO: St. JOSep~Economic Dev~ment Authority CLERK! ADMINISTRATOR FROM: JO~oust and Cynthia Smith-Strack, Municipal Development Group Judy Weyrens RE: Comprehensive Plan - Economic Development Chapter MAYOR Larry J, Hosch Backgro'und The City Council recently initiated the update of the City's Comprehensive Plan, As a part of COUNCILORS the plan, a chapter will be dedicated to economic development. In addition, the land use Bob Loso chapter will illustrate current and proposed future commercial and industrial land uses. Cory Ehlert Kyle Schneider Enclosed is a DRAFT copy of the economic development chapter of the Comprehensive Plan. Alan Rassier The information was prepared utilizing economic statistics and comments from the public during a community survey process, neighborhood meeting, business meeting and land use meeting, The Planning Commission will be reviewing and discussing the Economic Development Chapter at their October 7,2002 meeting, · An economic overview. . · Economic trends (income, labor force, commercial and industrial building permit activity, unemployment rates). · Public input including positive economic attributes-, challenges, business and service opportunities and input on public assistance for businesses), · Impact of the colleges on the local economy, · Historic preservation, · Technology. · Downtown commercial business district and policies. · Highway commercial district and policies. · Industrial development and policies. Action: The EDA is asked to review the enclosed draft Economic Development' Chapter and provide input on the proposed policies and economic development goals. . l.\ ECONOMIC DEVELOPMENT . I. Economic Development Overview The City of St Joseph is ideally situated along U.S. Highway 94 and County Roads 2, 75 and 133, Located in Stearns County, St. Joseph's economy benefrts from its proximity to St. Cloud, access to the major roads and from the colleges of St. Benedict, St. John's University and its growing commercial and industrial bases. The principal components of this section include: · An overview of economic trends in St Joseph; · Public input on economic development · The impact of the college and university on St. Joseph's economy; · Historic preservation; · Technology available and its impact on economic development; · An overview of commercial development and goals for future (re) development; and · An overview of industrial development and policies and goals for future (re) development II. Economic Trends Economic trends can be important indicators as to the economic health of the community. Following is a summary of several economic indicators including incomelwages, labor force and commercial and industrial construction. Income: . The 2000 Census reports a median family income in St. Joseph of $ 44,737, with male full-time year- round workers earning an average of $33,344 per year while female full-time year-round workers earn an average $22,007 per year. The per capita income in S1. Joseph ($12,011) is significantly lower than the township, county, state and federal averages of $18,384, $19.211, $30,742 and $28,546, respectively. This is most likely due to the presence of college students who either do not work or hold only part-time jobs. While the 2000 Census reports the median income for Steams County increased 19 percent from 1989 to 1999, it also indicates St. Cloud had the fourth highest city population of individuals 18 and older living in poverty, with a total of 7,171. More than 20 percent of St. Cloud families led by a female (and no male present) were living in poverty. Almost 50 percent of those families had children under 5 years of age. Among cities of 1,000 or more. St. Joseph had one of the highest portions of people 65 and older living in poverty at 34 percent. Neighboring city, Avon, had the lowest percent of families in poverty at one percent. TABLE 11-1 INCOME PROFILES: STEARNS COUNTY CITY OF ST. JOSEPH AND ST. JOSEPH TOWNSHIP Per Capita Median Median Male full-time Female full- Income Family Household year-round time year- Income Income income round income Steams Co. $19,211 $51,553 $42,426 $34,268 $23,393 St. Joseph City $12,011 $44,737 $38,937 $33,344 $22,007 St. Joseph $18,384 $51,321 $45,396 $32,039 $22,288 . Township Source: 2000 Census City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 1 7'2- f " · Wages: The Department of Economic Security indicates typical wages for employees in areas outside the twin cities range from $8.50 per hour to $27.73 per hour. Support and production workers average $9.23 per hour ($19,200 per year) while general managers and top executives average $27.02 per hour ($56,201 per year). The Minnesota Work Force Center reported the wages identified in Table 12-4, for the first quarter, 2002 for the St. Cloud municipal service area. Hourly wages ranged from $7.24 per hour for food preparation and service occupations to $26.59 per hour for management positions. A majority of positions in the Sl Cloud area were "office and administrative support" occupations (18.06% of all jobs) which paid an average of $10.79 per hour. The average median wage for positions in the St. Cloud MSA was $15.03 per hour. As previously noted, the 2002 Census reports that 35.4% of St. Joseph residents are employed in sales and office positions, 26% in management, professional and related occupations, 18.6% in service occupations, 7.1% in construction, extraction and maintenance occupations and 0.6% in farming, fishing and forestry occupations. TABLE 11-2 SAINT CLOUD AREA MSA WAGE ESTIMATES FIRST QUARTER, 2002 Median Wage Median Wage Range Wage Range % ofTotal Occupational Class Per Hour Annual Per Hour Per Year # EmDloved Jobs Farming, Fishing and Forestrv Occunations $11.44 $23,795.20 $11.44-9.04 23,795 -18,803 130 0,15% ute, Physical and Social Science Occupations $17.42 $36,233.60 $24.92 -13.68 51,833 - 28,454 240 0,28% · Legal Occupations $25,36 $52,748.80 $39,36 -15.67 81,868 - 32,593 360 0.41% Architecture and Enaineerina OccuDations $20,15 $41,912,00 $28,48 -14,19 59,238 - 29,515 660 0.76% Arts, Design, Entertainment, Sports & Media Occunation $13.56 $28,204.80 $19.35 - 6.90 40,248 - 14,352 830 0,96% Protective Services OccuDations $15.27 $31,761,60 $26,93 - 7.05 56,014 -14,664 880 1.01% Computer and Mathematical Occupations $21.12 $43,929.60 $25.42 -15.53 52,873 - 32,302 1,100 1.27% Community and Social Services Occupations $15.14 $31,491.20 $20.51 - 9.72 42,660 - 20,217 1,300 1,50% Personal Care and Service OccuDations $8,18 $17,014,40 $13.50 - 6,97 28,080 -14,498 1,380 1,59% Healthcare SUPpOrt OccuDations $10.59 $22,027.20 $16.02-7.62ur 33,321 -15,849 2,060 2,37% Business & Financial Operations Occupations $17.64 $36,691.20 $26.75 -10.21 55,640 - 21,237 2,630 3.03% Building & Grounds Cleaning & Maintenance Occupation $8.77 $18,241.60 $18.15 - 7.38 37,752 -15,350 2,900 3.34% Manaaement OccuDations $26.59 $55,307,20 $48.00 -10.73r 99,843 - 22,318 3,370 3,88% Construction and Extraction Occupations $16.98 $35,318.40 $26,01 -12.72ur 54,101 - 26,458 3,450 3.97% Installation, Maintenance and Repair Technicians $15.53 $32,302.40 $26.09 -8.87 54,267 -18,450 3,530 4.06% Healthcare Practitioners and Technical Occupations $19,83 $41,246.40 $56.41 - 11.00 117,332 - 22,880 4,400 5.06% · Education, Training and Ubrary Occupations $16.81 $34,964.80 $25.98 - 7.66 54,038 -15,932 4,930 5.67% City of 51. Joseph Comprehensive Plan, 2002 Chapter 11, Page 2 2-..3 , " Transportation and Material Moving · Occupations $11.90 $24,752,00 $19,92 - 824/ 41,434 -17,139 6,910 7.95% Food Preparation and Serving Related Occupations $7.24 $15,059.20 $10.95 - 6.42 22,776 -13,354 7,340 8.45% Sales and Related Occupations $8.89 $18,491.20 $24,81 - 7.02 51,605 -14,602 11,250 12.95% Production Occupations $11.36 $23,628.80 $19.98 - 7.44 41,558 -15,475 11,560 13.30% Office and Administrative Support Occupations $10.79 $22,443.20 $16.90-7.88 35,152 -16,390 15,690 18.06% AVERAGESlTOTALS $15.03 $31,252.95 $24.81 . 9.63 51,610·20,038 86,900 100.00% Source: Minnesota Workforce Center (wage estimates 1st quarter 2002, employment data 2000) Labor Force: Employment statistics from the 2000 census indicates a workforce in St. Joseph of 2,729, 2,585 of the workforce ( individuals over the age of sixteen) were employed (5.3% unemployment rate). The 2002 Census reports that a majority of St Joseph residents are employed in sales and office positions (35.4%) followed by management, professional and related occupations (26%), service occupations (18.6%), construction, extraction and maintenance occupations (7.1%) and farming, fishing and forestry occupations (.6%). As illustrated in Table 11-2, major employers within St Joseph include educational and religious facilities such as the college and Monastery, In addition the community has a variety of manufacturing and retail facilities. St Joseph's top fifteen (15) employers provide over 1,000 jobs to the area. Table 11-3 lists the major employers in the area. TABLE 11--3 MAJOR EMPLOYERS - ST. JOSEPH · 2002 Employer _ SIC Products/Services Employee Count College of St Benedict's 8221 Colleges & Universities 440 DBL Labs Inc. 3851 Ophthalmic Goods 177 St Benedict Monastery 8661 Religious Organizations 102 W Gohman Construction Co 1542 Nonresidential Construction, nec 40 Vic West Steel 3441 Fabricated Structural Metal 36 MCO Lens Crafting 3851 Ophthalmic Goods 31 Scherer & Sons Trucking 4213 Trucking, Except Local 27 Accu Serv 7374 Data Processing Services 26 La Playette Bar & Restaurant 5813 Drinking Places, Alcoholic Beverages 25 St Joseph Parish/School 8661 Religious Organizations 23 SuperAmerica 5541 Gasoline Service Stations 21 S1. Joseph, City of 9121 Government Offices 17 First St Bk of St Joseph 6022 State Commercial Banks 17 Metro Plumbing & Heating 1711 Plumbing Heating & Air Conditioning 16 St Joe Gas & Bait 5541 Gasoline Service Stations 10 · Source: August, 2002 Phone Survey- MDG Inc. (Full-time equivalent jobs) City of S1. Joseph Comprehensive Plan, 2002 Chapter 11, Page 3 7~~ , .> · As depicted in Table 11-4, the Minnesota Department of Economic Security, in 1990, estimated a 21.21% increase in projected employment for Steams County for the period 1990-2020, with the largest growth occurring in the 45-64 and 65+ years labor pools, as well as with additional females entering the labor force. A decrease in the number of young adults in the work force was anticipated to decline, which is consistent with the projected decrease in these age groups as identified in Table 3-3 of Chapter 3. Actual 2000 workforce numbers exceeded the 2020 projections which were prepared in 1990. 2000 Census data containing labor force projections was not yet available at the time of this Comprehensive Plan update. TABLE 11-4 STEARNS COUNTY LABOR FORCE - HISTORICAL AND PROJECTED "'-.,,,.__'.....-,,,...~~_.·'O---'-""'-.,,._"-·=_~.....-~-_=-·.<'""_'<'_~>=~=....<5ç=,,....~:-_""='"==_"='=·=""-.....".=~~'''''=.-,-=O<",...~,-~,.",..-_.'''-'''''''''=.'-,~_....i>-_.=·J'''-^~-=~=_"'"'''"r-'''·_-='''-'''==_"...,_~__,..,.."'''"'="=--...-_;.'''E''''''"'=_,=_'=-...--=>=~''''-=--=_~ "_..,~-,,_,~.,,~<·_<.~<''''O__'''..,,;.->,,...·Ä'_.:."~_~'''",...·.c'=_,~_,'C-".,' ~ '__'_'.'.".'_" ~-4_='_''''___-_~'-_''''_'.,,_'., I..........,,. !I~~~~s _,_ JI ___32,77~.!L ~~05~ IL_~~~!.«:JI,~~:!~~~~jL_:8,5!_~JI___,_~~,!~~JL,~~:.~~?JI.._ __1~'~~J il~~~~~~~_,_________!I____~~,~~~J 1___~~~~Jl___32~890 i L_~:!~~JL___~6'?':~J 1_:~~860J L~~o.~O_J I______n_'_'~~~_~~_j - ' Il!-ges 1_6-~4 _...Jl___~ 6~5~6, ¡ 1_..,~~~2?.JL_,~!:~~~J 1___~~~~~~JI__~~~..?j L__1!~~~~J L~,~~~~~JI,____~__.:~ .37-' 11~_~:s.__~~____JL__~~~44JI, __~~_,~80j_~~_~~~o il. ..__28,90~JI_ ~8,~oJL 2~,~?JI_ 30,~O JL.,___.._=~~~J ¡1~,~r:~.~~,,_..,JI__..1_~~~~,! L_..~~:~?J l__~~,:~o..JL__22:'~?J 1__.._~~~?.o.JL_~~~o~~J L__~~,~~Jl,_._~_..,~~:?:j · ¡l.~ges ~~:..,_.._ .i L._,.~_,~~~j L__~~~~?.J I,..._~,?~?! 1___.1_~~~?! L.,_2,O~?J L., 2, 7~?J l._,~,~:~?j I.,.." 1 ~??~,J I TOTAL LABOR I~~~~~~~I ! !._~~~9.~_~,..____,_ .,J,_,_~~'~_~_I.~,~~~=~.,j ",_..,~~_::~~.I,.,_._.~~::_~~.j .__,...~~'~~_,i .".__~:~~,.i ...,.,~=:~~~_,i .,"'__..___.,..,',.~~":~~.,,I , ' * 1990 Census. The number of people available within the Steams County labor force has been steadily increasing over the past twelve (12) years. Historically the unemployment rate has flùctuated within Steams County and within the state of Minnesota, with the unemployment rate in Stearns County generally slightly higher than the state average. While the labor force is projected to continue to increase, the unemployment rate may fluctuate with the economic status of the area, state and nation. Table 11-5 provides historical labor force statistics. Note, the actual labor force numbers shown below for 2001 exceeded the 2020 projected labor force numbers. TABLE 11-5 STEARNS COUNTY - UNEMPLOYMENT RATES Steams #in # in Steams Stearns County State of County Steams Co. Labor Unemployment Minnesota Labor Co. Labor Force Rate Unemployment Force Force Unemployed Rate Employed 1990 65,576 61,838 3,738 5.7% 4.9% 1991 67,414 63,592 3,822 5.7% 5.1% · 1992 67,198 63,750 3,448 ,5.1% 5.2% 1993 69,231 65,742 3,489 5.0% 5.1% City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 4 '25 " 1994 72,013 69,096 2,916 4.0% 4.0% · 1995 73,269 70,273 2,995 4,1% 3.7% 1996 73,714 70,052 3,662 5.0% 4,0% 1997 72,967 69,994 2,973 4.1% 3,3% 1998 74,135 71,978 2,158 2,9% 2.5% 1999 76,913 74,652 2,261 2.9% 2.8% 2000 78,332 75,590 2,742 3.5% 3.3% 2001 80,159 76,980 3,180 4,0% 3.7% Source: Minnesota Workforce Center Commercial/Industrial Construction: Building permit reports indicate commercial and industrial building construction has averaged over $1.2 million per year for the past 5 % years. St Joseph is experiencing additional commercial development along County Road 75 which has, in the past, occurred in adjacent cities; Waite Park and S1. Cloud, In 1999 a business park was opened at the northeast intersection of County Road 133 and County Road 75. The St. Joseph Economic Development Authority has a cooperative marketing agreement in place with the property owner to assist in promoting the development of the park, which includes both highway commercial and industrial lots. Additional highway commercial developments as well as discussions for redeveloping the downtown have also occurred in the past year. Residential developers have also expressed increased interest in developing large subdivisions within S1. Joseph and the orderly annexation area, As residential units increase, there will be increased demand for retail and professional services. BUILDING PERMITS 1997-2002 · Type of $ Value $ Value $ Value $ Value $ Value $ Value Construction 1997 1998 1999 2000 2001 To May 20, 2002* Commercial and industrial 996,000 1,611,000 1,508,100 361,500 639,990 1,606,530 New, additions and remodelinQ projects Single-Family (new) 4,171,000 1,926,000 3,131,000 2,361,120 6,040,500 2,641,000 Single-Family (remodeling and 73,700 200,420 247,900 268,100 306,021 157,839 additions) Multi-Family buildings new)- Includes CSB 25,000 625,000 1,000,000 3,000,000 0 0 Multi-Family (remodel) 0 30,000 53,000 833,800 82,5ÖO 0 Non-profit ** 1,297,000 2,083,500 1,211,991 790,840 134,000 220,000 Total 6,562,700 6,475,920 7,151,991 7,615,360 7,203,011 4,625,369 Source: City of St Joseph Building Pennits-excludes signs, fences, garages and sheds * 2002 through May 20th ** Non-profit includes the college, city and church facilities Economic summary: · Most economic indicators suggest S1. Joseph will continue to prosper. The disparity in per capita income between steams County and the State of Minnesota is expected to continue to decrease. Labor force City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 5 z_lp . ~ - numbers have surpassed projections prepared in 1990 which suggested a 21.21% increase over the next · twenty (20) years. The unemployment rate, while higher than the state average, has remained below the national unemployment rate. St. Joseph's employment opportunities are diverse with . a variety of educational, government, manufacturing, and retail positions. These are anticipated to continue to grow. Building construction of commercial and industrial facilities has fluctuated in the past five years. Additional industrial and commercial construction will depend upon the availability of industrial and commercial land for development. Various agencies in the St. Joseph area coordinate economic development activities. These include the St Joseph Area Chamber of Commerce, St Joseph Economic Development Authority and City Council. III. Public Input on Economic Development In order to obtain community input on economic development within the city, several questions relating to commercial and industrial development were included in the community survey. In addition, the topic was discussed at the neighborhood meeting as well as at a business meeting. Following are comments that were received: Positive economic attributes for St. Joseph: As a part of the survey/interview process participants were asked what one major change they have observed over the past five (5) years. The number one response was growth. · As a part of the survey process, the following were listed among the top 10 positive attributes of the community; S1. Joseph has a Main Street and a downtown, businesses know each other and there are good places to meet and eat Participants at the Neighborhood meeting identified the following positive attributes relating to economic development: Historical attributes, the downtown atmosphere and the existence of small businesses (e.g, Meeting Grounds, Meat Market). As a part of the Business Meetings the following were identified as positive attributes of doing business in St. Joseph: · Small town atmosphere. · Friendly place to do business, · Location. · Educational facilities; and · City government works well with developers. Economic Development Challenges: As a part of the survey/interview process, participants were asked to identify the major challenges facing St. Joseph. Responses relating to economic development included; · Growth management, fiscally and a balance of business growth with residential growth · Retaining small, local businesses and an attractive main street business area · Avoiding being assimilated into S1. Cloud and maintaining individuality · Aesthetics - parking lots on Main Street · As a part of the neighborhood meetings the following were identified as challenges relating to economic development; City of 51. Joseph Comprehensive Plan, 2002 Chapter 11, Page 6 2--1 , · Growth management · Transportation planning and the division of the community with County Road 75. · · Maintaining a kindergarten through 12th grade education system within the community. · Utilization of downtown space; keeping downtown alive; developing a theme for the downtown · Retaining residents and businesses who have a stake in the community. · Equalizing the tax base % commerciallindustrial to % residential · Preserving the small town identity; and · Working relationship between the college, residents and businesses Participants at the Business Meetings identified the following challenges relating to economic development: · Limited acreage available. · Increasing costs of land. · Securing skilled laborers (unskilled easy to find); and · Discrepancy in residential & business tax classification rates. Additional economic opportunities: Respondents to the community surveylinterview process and business meetings identified the following businesses or services as potential additions to the community: · Pharmacy/Drug · Nice restaurant; e.g. steak house · Retail grocery store · Fast food restaurant · Library · Nicellittle shops - "Stillwater romance" with lighting and awnings · Bookstore · · Bakery · Adult bar · Arts and crafts · Mall wit clothing · Auto dealer/maintenance · Recreational center/senior center Public assistance to promote economic development: The state of Minnesota requires public entities to establish wage and job goals for businesses which are receiving public financial assistance or a "business subsidy". St Joseph is considering a revised policy wherein employers receiving public financial assistance shall pay wages equal to 90% of the median wage for the applicable job classification in the S1. Cloud Metropolitan Statistical Area as defined by the Minnesota Workforce Center or $11.00 per hour excluding benefits, whichever is higher. As a part of the community survey, respondents were asked what wage would warrant public assistance for businesses planning to expand or relocate to S1. Joseph. Responses were as follows: federal minimum wage (6%), minimum of $8-$10 per hour (18%), minimum of $10.01-$11.99 per hour (35%), minimum of $12 per hour (35%), and undecided (6%), As a part of the business meetings, minimum wage requirements for businesses participating with financial assistance programs were discussed. Business owners indicated that they felt the score for use of incentives should be based on more than the number of jobs created. They thought consideration should be given to automating the workplace, improving working conditions and remodeling, They noted they felt it was appropriate to give assistance to businesses creating jobs with starting wages at $10 to $12 per hour, Business owners were also very interested in low interest loans for small business · expansion and technology upgrades and a revolving loan fund, City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 7 zZ . , . IV. Impact of Sl Benedict College and St. John's University St Joseph is home to St. Benedict College, while St. John's University is located just outside of the corporate limits, In December, of 2000, an "Economic Impact of St. John's University and the College of st Benedict on the Local Economy" was completed by a number of students for the Department of Economics. Among the positive economic contributions the colleges have on the local economy listed were: · Employment and wages for approximately 1000 students and faculty members, a majority of which live locally; · The impact on the housing market - rental properties; · Visitors/tourism to the campus and community; and · Spin off impact on local businesses (e.g. Bank accounts, groceries, additional labor force) While the report included specific dollar amounts in which it felt the colleges impacted the community, it did not take into account the re-use of the college land if it were not there and the taxes that other uses would generate. It also classified the spending of wages and other dollars "locally" rather than specifically within the city of St. Joseph. Therefore, while it is known the colleges play a very important role in economics of the city, a dollar impact figure is not included in this chapter. At the Business Meeting, business owners discussed the impact of the college on their companies. A majority of business owners present noted they are very supportive of the diversity, culture and educational atmosphere the colleges bring to St. Joseph. A majority agree the college and its staff and students do add to retail sales. A few expressed concems about the college and monastery owning and . holding land that is generating revenue but not being taxed. Recommendations relating to the presence of the college and university in the area: 1. City leaders and College administrators and student representatives should continue to meet on a monthly basis to discuss activities at the city and college level, impacts on housing and integration of students with homestead property residents. ~ Implementation: Mayor, City Administrator, College of St. Benedict, St. John's University. 2. The City and College of St Benedict should explore cooperative ventures to provide cultural activities for the community. ~ Implementation: College of St. Benedict, City's Community Education. 3. Retail and service businesses should strive to serve students and employees at the college by sponsoring a "Welcome Back to College Promotion" or similar event to draw student to local services. ~ Implementation: Chamber of Commerce, College of St. Benedict and St. John's University. V. Historic Preservation The City of St. Joseph is proud of its rich history and small town nature and charm. Several sites of historical significance are located within the City including: St. Benedict's Monastery and College Historic . District located at College Avenue and Minnesota Street, the Catholic Church of St Joseph located at City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 8 2-1 Minnesota St. and College Avenue and the First State Bank building located at 23 Minnesota Street . West A St. Joseph Historical Society was formed in 2002. There are ten to twelve active members who serve to preserve history and artifacts. The organization currently utilizes space in the upper level of the bank. The Historical Society plans to become active in the Welcome Center proposed along the Lake Wobegon Trail. They also have photographs of original downtown buildings, should retail and service businesses desire to restore original facades. The City currently does not have historic preservation standards or zoning regulations which prohibit the demolition or alteration of the buildings. If a building owner completes mitigation procedures, a building of historical significance could be demolished. Community survey results indicate 82% of those responding noted a need for local controls relative to historic preservation; 6% indicate stricter controls are not needed. The remainder of those responding (12%) were undecided, Those responding in favor of stronger local controls noted historic preservation guidelines need common sense applied and need to be fair and balanced, and not too strict that people are afraid to buy a building. Recommendations relating to historic preservation: 1, St. Joseph should review the importance of historical buildings and define the community's dedication to the preservation of historic elements. Prescribing design standards for new, expanded or remodeled buildings and establishing standards for allowable demolition of historical buildings may achieve preservation of Sl Joseph's history. The standards may apply to buildings on the National Register as well as other architecturally interesting or historic buildings or homes in St. Joseph, > Implementation: The St. Joseph Historical Society, along with the St. Joseph Area . Economic Development Authority and Sl Joseph Chamber of Commerce. 2. Business owners should discuss the image they hope to portray in the downtown and highway commercial districts and the desirability of adopting design standards which address items such as the exposure of original architectural features, colors, awnings, construction materials and historic preservation. If determined design standards are desirable, it is recommended the City assist through the establishment of a low interest revolving loan fund to financially encourage and support such changes. Application for a commercial rehabilitation small cities development grant may assist in the fund development. > Implementation: Chamber of Commerce to define the image desired for the downtown commercial area. Economic Development Authority and City to assist with the establishment of a low interest loan or other incentives to assist in the implementation, if deemed desirable, VI. Technology St. Joseph's telecommunication profile includes high-speed intemet access services and computer resources at the College of St. Benedict. As a part of the business meetings participants noted the technology available is top notch, mostly due to the presence of the College in the community. Remote distance learning, high-speed internet access and digital technology are utilized by some of the businesses, Many businesses were interested in technology updates being assisted via low interest loans. Recommendation relating to technology: . City of St, Joseph Comprehensive Plan, 2002 Chapter 11, Page 9 3D , 1, Research the establishment of a low interest loan through state and regional sources or local . tax levies to support commercial/industrial technology upgrades. ~ Implementation: St Joseph Economic Development Authority and City Council. VII. Downtown Commercial Business District It is essential that a community understands the importance of all commercial and industrial areas and the overall impact each has on the community as a whole. The city's zoning ordinance classifies commercial areas as either General Business District or Highway Business, as illustrated on Map 12-1. The General Business District is located primarily within District 5, while the Highway Commercial Development is within Districts 1, 4, 6, 7, 9 and 11. Building/Infrastructure Condition St. Joseph's downtown is comprised primarily of retail and professional services as well as the College of St. Benedict. Governmental offices including the city offices and post office attract consumers and employees to the downtown area. A majority of the buildings in the downtown were constructed between 1850 and 1915. Several are in fair to poor condition. While the Uniform Building Code applies to new and remodeled structures, design standards regulating construction materials or building design do not exist. As a part of the survey process, 50% of the participants indicated they felt the overall condition of buildings within St. Joseph are "Fair" (on an "Excellent, Good Fair, Poor" scale), noting buildings in the downtown are getting old and in need of façade improvements or a facelift. They noted Highway 75 buildings are in better condition. Survey participants suggested the redevelopment of the downtown to be come a destination with ambiance and charm. As a part of the business meeting, business owners favored the development of a park in the downtown, providing available parking was not diminished or . further compromised. They also favored redevelopment/revitalization of the downtown to enhance the distinctive nature of the area. Some expressed an interest in not a "themed developmenf but redevelopment more along the lines of rediscovering the historical architecture of existing structures. The St. Joseph EDA has identified several parcels for potential redevelopment, along with possible funding sources (tax increment financing, low interest loans, tax abatement) to assist businesses with (re) development projects. The EDA has also discussed the possible submittal of a Small Cities Development Grant for Commercial rehabilitation in the future. The bank has offered to assist with low interest loans for commercial rehabilitation projects as well. The Chamber of Commerce has been active in beautification of the downtown and is in the process of completing a second phase of funding the installation of decorative lights, sidewalk pavers and flowerpots. Parking Parking in the downtown includes on-street parking, public parking lots and private parking lots. In order to support customer and employee parking one parking standard suggests there be 1 to 3 parking spaces per 1,000 gross square feet of commercial space, It is suggested that 4 to 6 parking spaces be provided per 1,000 gross feet of commercial spaces such as malls. While the city has not completed a detailed parking study, business owners have expressed a concern regarding the availability of parking in the downtown area. The City maintains a parking lot behind the city offices for public use, however the lot is underutilized. Suggested methods to alleviate parking problems or perceived parking problems may include posting time limits for some of the on-street parking stalls where short-term parking is needed. This discourages downtown employees from using prime customer spaces. The installation of signage along College Avenue directing individuals to the municipal parking lot may also assist in further use of this space. As a part of the business meeting downtown merchants expressed concern that parking is a barrier to . development in the downtown area. They suggested zoning standards, which require a specified number of parking stalls, limit development in the downtown. They indicated people are not willing to walk from City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 10 31 the City parking lot to establishments on Minnesota Street. Participants also feel apartment tenants take up valuable parking spaces, . Traffic Traffic in the downtown is heavy with County Roads 2 and 75. 1999 traffic counts indicate 7,300 vehicles per day at the intersection of County Road 2 and Fourth Avenue NW and 4,700 vehicles per day at the intersection of County Road 2 and Second Avenue NW to College Avenue, High traffic counts provide businesses with high visibility and access. Challenges, however, include pedestrian conflict and traffic congestion. The proposed connection of County Road 2 to Country Road 3 is projected to alleviate traffic congestion, reduce safety hazards and provide opportunities for redevelopment in the downtown. Commercial development in other parts of the City and the region compete with the St Joseph Downtown commercial area, If the City plans to preserve the downtown central core as a commercial center, there are certain strategies which can be undertaken to escalate the area's drawing power. As commercial business begins to concentrate in the areas along Road 75, the Downtown may experience a decline in customer business. One way to keep the Downtown a vital part of the community is to modify it to become a self-supporting area outside of the commercial development toward the highway. The City can encourage particular types of business services in the Downtown area, which are not available in the highway commercial areas, such as local government facilities, professional, and specialty services, Recommendations for Downtown Commercial (Re) Development 1. Areas for potential Downtown expansion or development should be identified with respect to the acquisition and rehabilitation of substandard properties or the preservation of structures for rehabilitation. ~ Implementation: St. Joseph Economic Development Authority and Chamber of Commerce. . 2. Govemmental and semii10vemmental services and buildings including the City offices and the post office impact the vitality of the downtown business district. These services should be encouraged to remain (City Hall) and pennitted (Post Office) in the downtown business district. ~ Implementation: City Council and Postal Service, 3, To further accommodate downtown (re) development the Chamber of Commerce, the Historical Society or Economic Development Authority may request the City consider either adopting specific downtown commercial district standards or design guidelines including construction materials, colors, restoration of original architectural features, signage and awnings and/or establishing a low interest revolving loan fund to assist with the implementation of these goals. ~ Implementation: The Chamber of Commerce and/or the Historical Society should identify the "identity" they wish to obtain for the downtown and any specific standards they wish to implement. The City and EDA should support the Chamber of Commerce through the use of a S1. Joseph Economic Development Revolving Loan Fund. This fund should be coordinated with the local bank and possible state funding (Small Cities Block grant). 4. Ongoing maintenance and renovation of downtown buildings is needed to ensure the physical conditions are maintained or improved. The City should gauge business interest in participating in a commercial rehabilitation program and if strong interest exists, consider the application for funding to the Small Cities Development Program. ~ Implementation: The St Joseph Economic Development Authority and City Council. . City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 11 3¿ . 5. Traffic circulation and congestion concerns should be addressed through volume analyses and · origin-destination studies to determine causes of problems and effects if not resolved, and potential benefits to be derived by proposed solutions. )- Implementation: Public Works Department, City Engineer and City Council. 6. If development on existing parking lots in the downtown occurs, replacement parking equal to the number of spaces lost should be required. )- Implementation: Planning Commission and City Council. 7. The City should consider ways to alleviate the parking shortages in the downtown through the use of signs to limit specific spaces to one hour or less parking as well as signage to direct customers to the municipal parking lot )- Implementation: Planning Commission and City Council. 8. Single-family housing within the downtown core area should be limited due to compatibility concerns. Housing more appropriate in this type of setting is of a multiple family type, such as senior housing in which residents may walk to nearby services. Adequate off-street parking and open space should be provided for residential uses. )- Implementation: Planning Commission and City Council. 9. The pedestrian circulation system should be enhanced by improving sidewalks, street fumiture, and mitigate conflicts with traffic and street intersections by providing proper separation and signage control and enforcing such signage regulations. · )- Implementation: City Engineer and City Council with enforcement by the Police Department. VIII. Highway Commercial District Significant highway commercial construction occurred within the past ten years. With projected growth in the City, and increased traffic along County Road 75 and Interstate 94, the City anticipates continued highway commercial development within the next several years, Therefore, St. Joseph should plan to utilize the properties along County Road 75 and potential commercial areas along Interstate 94 to establish attractive commercial areas. Since the highway corridors serve as commercial districts for the City, the development should be complimentary to the services in the Downtown. These developments should be of a specialized nature exhibiting needs of highway access and visibility. City financial assistance to highway commercial growth should be limited to non-competing commercial activity which is deemed in the best interest of the community and which would not occur without assistance. The City should promote commercial development in designated centers and commercial "nodes" that not only offer higher efficiency in land use and development, but also offer a higher level of aesthetics. The City's zoning ordinance currently does not contain minimum lot sizes for highway commercial lots. Minimum lot sizes, larger than the downtown commercial area, should be established that will discourage uncoordinated small lot commercial development. Community input during the survey process, neighborhood meeting and land use meeting focused around a need to maintain attractive highway corridors and gateways to the community and avoid the typical strip commercial developments, which occur in neighboring communities. A desire to retain uniqueness and individuality was expressed repeatedly. In order to accomplish this, the City may wish to consider building standards, attractive landscaping requirement, environmental beautification, and controlled · parking, loading and street service standards. The City should plan now to allow for the market potential City of 51. Joseph Comprehensive Plan, 2002 Chapter 11, Page 12 33 which will occur in the future and implement commercial land use policies and gUidelines as the future market warrants. . As a part of the Business meeting, zoning regulations relating to highway commercial developments were discussed. Participants favored larger lot sizes, façade requirements, greenspace requirements and landscaping standards as a means of promoting the nature of the community. Many remarked the reason they do business in S1. Joseph is because of personal relationships with customers. They noted they did not want CSAH 75 to be built up like Division Street in St Cloud. Business owners favored the development of commercial and combination commerciaVlight industrial establishments adjacent to CSAH 2 and frontage roads to optimize visibility and maximize access to business establishments. Survey participants and participants in Neighborhood and Land Use meetings were asked where future commercial development should occur. Respondents suggested along the County Road 75 corridor to the east, along 88th Avenue by the Delwin south to Arcon area, along the County Road 2ICounty Road 3 bypass and along Interstate 94 at the intersection of County Road 2. Participants at the Land Use meeting noted the need to control aesthetics in this area as the topography of 1-94 allows travelers to see this area from a higher grade, Policy Statements for Highway Commercial Developments 1. Commercial developments along County Road 75 and County Road 2 should be complimentary to commercial and service uses of the Downtown. ~ Implementation: Planning Commission and City Council through the identification of 'permitted uses' within the highway and general commercial areas in the zoning ordinance, 2. Commercial developments along 1-94/County Road 2 and County Road 75 should be of a specialized nature exhibiting the unique needs associated with major highway access and visibility, . ~ Implementation: Planning Commission and City Council through the identification of 'permitted uses' within the highway commercial areas in the zoning ordinance. 3. In newly developing areas, direct property access to County Road 2 and County Road 75 should be prohibited and should be accommodated via a frontage road system. ~ Implementation: City Engineer, Planning Commission, City Council and Steams County. 4. Commercial and service centers should be developed as cohesive, highly interrelated and coordinated units with adequate off-street parking and appropriate regulated points of access. ~ Implementation: Planning Commission and City Council, through the zoning ordinance and site plan approval. 5. Revisions/additions of certain development standards should be considered to insure the quality of development desired by the community including minimum lot sizes, lot coverage, landscaping standards, building construction, lighting, screening and outdoor storage. ~ Implementation: Planning Commission with input from the Chamber of Commerce, Economic Development Authority with final action by the City Council. 6. Commercial maintenance codes may be enacted and enforced to help insure that the commercial development maintains community character on an ongoing basis. ~ Implementation: Building Inspector and City Council. . City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 13 34 . 7. Immediate, short-range market potential and demands for activities that are not suggested for · a site or area by the Comprehensive Plan or allowed by the Zoning Ordinance should not be the sole justification for a change in activity. )- Implementation: Planning Commission and City Council. 9. Safe and convenient pedestrian movement should be considered within all service and commercial districts, including research on the feasibility of an overpass or bicycle/pedestrian way over County Road 75. )- Implementation: Street Commissioner, City Engineer and City Council. 10. Efforts to achieve commercial redevelopment should be encouraged and promoted, )- Implementation: Economic Development Authority and Chamber of Commerce. IX. Industrial Development St. Joseph is fortunate to have a diverse industrial base including major employers MCO-DBl labs, Vicwest Steel, Borgert Products, Gohman Construction, Scherer & Sons Trucking and many smaller manufacturers. The City has one primary industrial arèa located on the northeast side of the community, north of County Road 75, within Planning District 11. 5t. Joseph's industrial land was zoned based on several key criteria including access to County Road 75 · and County Road 133, topography and compatibility with adjacent land uses. The industrial area includes a portion of Buettner Business Park (approximately 45 acres), Borgert Industrial Park (approximately 15 acres) and St. Joseph Industrial Park (approximately 40 acres) or a total of 100 acres, of which an estimated 40 acres remain vacant but have utilities in place. Participants in the Business meeting indicated CSAH 133 needs to be updated to a ten-ton roadway or exempted from weight restrictions. They also indicated the current truck route through the City is not properly designed, as it is difficult to make tums and to access CSAH 75. Business owners favored façade, landscaping, outdoor storage and building material standards. Future industrial areas: Participants in the Business Meeting favored combination commercial/very light industrial uses adjacent to CSAH 2. They also suggested continued industrial development adjacent to current industrial areas. Participants of the land Use meeting concurred with industrial development adjacent to existing industrial zoned properties, provided it does not impact wetlands in the area. They expressed concerns with locating industrial facilities, including warehouse type facilities, adjacent to County Road 2 as this is a gateway to the community. The City's Economic Development Authority has adopted tax increment finance polices and has bonding authority to assist and encourage industrial development. Policy Statements for Industrial Development: 1. Existing industrial uses should be retained and new industrial development should be encouraged to locate in existing industrial parks and industrially zoned areas. Future industrial areas should be located adjacent to current industrial zoned land, provided it does · not negatively impact or encroach upon wetlands in the area. City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 14 35 . ~ Implementation: Economic Development Authority and City Council. . 2. Traffic generated by industrial activity should be prohibited from penetrating residential neighborhoods. ~ Implementation: Planning Commission and City Engineer through site plan approval and long range transportation planning, 3. The Economic Development Authority should promote industrial· developments that maximize the return on city investments in public facilities and services, expand the tax base, provide quality employment opportunities and compliment existing services. ~ Implementation: Economic Development Authority. 4. Existing industrial uses and new industrial development should not cause pollutants or contaminants to be emitted into the surrounding environment (including air, soils, ground water, drainageways, sanitary sewer and storm sewer) in excess of State and Federal regulations. ~ Implementation: Building Inspector and Planning Commission. 5. Industrial areas should be adequately screened and appropriately landscaped and designed according to City standards. For both existing and new industrial development, regulations should be maintained with criteria regarding: building appearance and materials; screening of outside storage areas; screening of off-street parking facilities; use of landscaping; and proper handling of environmentally sensitive areas. . ~ Implementation: Planning Commission and City Council. 6. Efforts should be undertaken to limiting heavy/noisy industry to a specific area within current and future industrial zoning districts to reduce the impact of these industries on residential - areas. ~ Implementation: Planning Commission and City Council. 7. Continued expansion of the City's industrial and commercial tax base should be encouraged to assist in paying for needed services and in reducing tax impact on housing costs, A study should be conducted to identify future industrial park property and methods of developing the industrial park prior to the full occupancy of the Buettner Business Park. ~ Implementation: St. Joseph Economic Development Authority and City Council 8. Industrial activities complementary to existing uses should be identified and the development of such industries should be promoted and facilitated. ~ Implementation: Economic Development Authority and City Council 9. Alternative fiscal incentives should be investigated to attract new desired industries to St. Joseph. Review of the wage levels required for employers obtaining public financial assistance should be reviewed as it relates to the ability of employees to obtain affordable housing and affordable day care services. ~ Implementation: Economic Development Authority and City Council . City of 51. Joseph Comprehensive Plan, 2002 Chapter 11, Page 15 3(P 10. Due consideration should be given to all potential physical implications and services and . facility demands (Le., traffic generation, sewer and water demands, etc) of any proposed industrial development Extension of utilities and annexation of areas about to become industrial in nature should occur prior to the issuance of building pennits for the industrial construction. > Implementation: St. Joseph Public Works Department, City Engineer, Planning Commission and Council. The City should focus on providing a balance of industrial growth to support the community's tax base and to provide jobs, commercial growth to provide services to employees and residents and housing development to provide housing opportunities for all. . . City of St. Joseph Comprehensive Plan, 2002 Chapter 11, Page 16 37 . . · 3~ ity of St. Joseph 25 College Avenue NW . P,O. Box 668, St. Joseph, MN 56374 (320)363-7201 Fax: 363-0342 DATE: September 10, 2002 CLERK! MEMO TO: Economic Development A~rity ADMINISTRATOR ~ (} Judy Weyrens FROM: Jòann Foust & Cynthia Smith-Strack, Municipal Development Group MAYOR RE: Economic Development Activity Report - August/September, 2002 Larry 1. 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 Alan Rassier Business Prospects have been identified by a project number to protect the confidentiality of the businesses. Project 01·A: The company plans to lease a newly constructed 67,000 square foot building in S1. Joseph Business Park. Footings are in the ground with construction planned for the first week of September. DTED has approved the $40,000 Minnesota Investment Fund Grant to the City for a low interest equipment loan to the company, pending the adoption of a resolution by the City Council. . Proj~ct 01-E: This organization is considering the relocation of a facility to another location in the City, Negotiations on the site were occurring in March. MDG invited the company to attend the business meeting on August 1,2002. MDG also followed-up with an e-mail on August 27,2002 Project 01·F This project involves the locating of a fast food restaurant in the City of St. Joseph. The company representative met with MDG on August 2ih and toured possible sites. On September 3rd MDG prepared a spreadsheet with information on lot sizes, owner's name and number, assessed market values and taxes for six potential sites, as requested by the company. On September 10th MDG called and left a message following up on the information sent. Project 01-1 This company is considering the purchase of approximately 5 acres in S1. Joseph Business Park for a 12,000 square foot facility, The company has an option on the lot but is waiting to proceed with the closing on the property until they sell real-estate they own in another community. MDGfollowed-up on August 2ih. The company requested a copy of the revised covenants and indicated they are considering proceeding with the purchase of the land, Project 01-N: This commercial business is considering the construction of a 3,000 square foot office facility in St. Joseph (not in the S1. Joseph Business Park), MDG spoke to the company representative on August 18th and 2ih. The company has a purchase agreement, contingent on zoning approval and assessments, for a newly annexed lot in K&L Properties. . 31 . Project 01-P . This company contacted the city in October, 2001. MDG has remained in contact, although the company has indicated they are not yet ready to expand. On September 10th MDG sent a letter thanking them for their interest in expanding in St. Joseph and offering assitance as their plans proceed. 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. MDG sent a follow-up letter on August 6, 2002. Project 02-E This company contacted the city in February re: a one-acre site, In July the company indicated they are waiting until the spring of 2003 to proceed. On September 10th, MDG followed up on September 10tti with a letter thanking them for their continued interest in locating in St. Joseph and offering assistance as plans proceed, Project 02-F -,~~ This company has been revièwing sites for a 40,000 square foot facility., with 40 new anticipated jobs, On August 6th the company e-mailed MDG noting they could not arrive at an agreeable price for the lot and were planning to locate in another community. MDG responded and offered to assist in the process and noted potential financial incentives to assist in lowering land costs. 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 . corresponded with the company on August 13, 21, and 2ih and September 4th and 6th, The Planning Commission conducted a public hearing for a special use permit for the company and reviewed the site plan on August 26, 2002, and tabled action until September 11th. 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, MDG had follow-up conversations with the business on August 13th and 26th regarding the Frieler Accounting building. The Planning Commission approved the buildin~ plans on August 26th, The Council approved the building renovation plan at their September 9t meeting, Project 02·L --- This company contacted the city on April 29th regarding potential space for the constructiorï of a office/warehouse and office facility. MDG Followed up with the company on August 27th. The company submitted a draft site plan and requested a draft purchase agreement for a 3.0 acre parcel in Buettner Business Park, which MDG provided to them. They are interested in constructing a 12,800 square foot multi-tenant building in St. Joseph business park, with plans for an additional 9,600 square feet.. The contact asked for assistance in identifying other tenants, Project 02-M This company contacted the city on May 2nd regarding industrial lots for a 12,000 square foot facility. In July the company reported to MDG that their expansion plans were delayed due to the economy. On September 10t\ MDG sent a letter to the company thanking them for their continued interest in the community and offering assistance as their expansion plans proceed, . 40 . , . Project 02·0 This company contacted the city on May 6th and requested more information on S1. Joseph Business Park and the city. They are considering a 20,000 square foot facility (16,000 sq, ft, manufacturing, 4,000 sq. ft, office), MDG followed up on August 6th and 2ih. Project 02·P This company is currently occupying an office facility in which they are outgrowing. MDG initially contacted the company in May, 2002. At that time they indicated a need for approximately 4,500 square foot facility, They are considering S1. Joseph or Avon. On September 10, 2002, MDG sent a follow-up letter offering to assist as their expansion plans proceed. Project 02-Q This company contacted the city in May, 2002 and requested information on 1 acre sites, The contact for Project 02-L spoke to this business person re: space in the multi-tenant building but determined it was not feasible. The owner indicated it would be beneficial if there were more 1 acre industrial lots available. Project 02-R: This com~any is interested in a site for a 7,000 square foot building. MDG followed up on August 6t and 2ih. The company will be còntacting Mr. Buettner regarding sites in the Park, Project 02-$ A realtor has contacted the EDA and City regarding a lot split to create a 6.43 acre parcel (northerly 6.43 acres of Lot 1, Block 2) in S1. Joseph Business Park. The company submitted a site and building plan for EDA review on August 21st and Planning Commission review on August 26th. The Council will be reviewed revised site plan information at their September 19, . 2002 meeting. Project 02-T The Department of Trade and Economic Development distributed a state wide request for proposals for a company seeking locations for three new facilities. MDG prepared a proposal and submitted it to DTED on August 21, 2002. Other: MDG has assisted in the review of the commercial/industrial zoning ordinance, TIF Guidelines and report card, the Business Assistance (Subsidy) Policy, new Revolving Loan Fund Policies and Procedures and application and the Economic Development Chapter of the Comprehensive Plan, . LH it!} of St. Joseph 25 College Avenue NW ' . P,O, Box 668, SI, Joseph, MN 56374 Date: September 10 2002 (320) 363-7201 Fax: 363-0342 Memo To: EDA Board Members ~';t- CßJ CLERK! Memo From: Joa e Foust and Cynthia Smith-Strack, Municipal Development Group AD~llNISTRATOR Judy Weyrens RE: Minnesota Community Capital Fund (MCCF) MAYOR Larry J, Hosch Background Scott Martin, a representative of the Minnesota Community Capital Fund (MCCF), COUNCILORS addressed the EDA at their June 19, 2002 meeting and City Council on September 5, 2002. Bob Loso The City Council will act on participation in the MCCF program by mid-October. Attached is Cory Ehlert correspondence recently received from MCCF, for EDA members' information. Kyle Schneider Alan Rassier . . 42- . 'fiDIj. .' MINNESOTA COMMUNITY · CAPITAL FUND ( September 5, 2002 . ~ ~~~ ... Ms. Joanne Faust b 11~ljC[ ~~ Consultant ~ ~ SJ¡. ~ ~\ ~({F St. Joseph Economic Development Authority PO Box 668 l~ ~J(, . " St. Joseph, MN 56374 ~ '. rn J~~ Dear Ms. Faust: m ,~ , ÌÞ Earlier this summer, you should have received the Offering Pro ctus for m ership in the Minnesota Community Capital Fund (MCCF) , As we approach the closing date for the Fund's charter membership enrollment period, I strongly encourage your organizatiQn to take a close look at the benefits of being part of this unique new economic development financing resource. · MCCF membership commitments recently passed the halfway mark towards reaching the initial Loan Fund capitalization goal of $2.5 million, with more than 25 local governments and econOIDlC development organizations from throughout Greater Minnesotahaving already decided to become MCCF members. The deadline for charter membership in the MCCF is October 31,2002. I urge you to act now to join the Fund and put your money to work through this unique partnership with 'our other members, including Fergus Falls, Tracy,Cloquet, Winona, Elk River, Chatfield, Detroit Lakes, Buhl, St, Cloud,. Warroad, Hutchinson and many other local development organizations that want to take advantage of the power of leveraging and cooperation. Enclosed for your reference is a summary ofMCCF membership benefits and operational features, Please don't hesitate to call me should you have any questions about becoming a member of the Fund, or if you would like to receive another copy of the Offering Prospectus. Thank you for considering our invitation to join the MCCF. Sincerely, j)~~~ Scott Martin CEO enclosure · Activating Capital for your Community 13911 Ridgedale Drive I Suite 260 I Minneapolis. MN 55305 phone: 952 541-9674 I fax: 952 541-9684 I website: www,mncommunitycapitalfund.org LL3 IvIINNESOTA, C:ONUvHJNITY . CAPITAL FUND The Minnesota Community Capital Fund (MCCF) offers, local governments and economic development organizations serving Greater Minnesota the opportunity to participate in an innovative new development fInancing resource. Established as a nonprofit membership organization, the MCCF is designed to leverage millions of dollars in local Revolving Loan Fund (RLF) capital through the pooling of resources and access to national capital markets. MCCF members have the advantage of offering much larger loans than would be possible with limited existing local resources, greater lending flexibility for financing local development projects, and significantly lower loan risk--all with the support of a professional fund manager who does all of the work! Choose your own membership level The MCCF welcomes communities and development organizations of all sizes to participate in the Fund, Three membership levels are available, ranging from as low as $25,000 up to $250,000. Simply choose the participation level that best fits your organizational needs, and enjoy the incredible 10-to-l leveraging of funds offered to members at every contribution level. The benefits of membership With a primary goal of supporting business and affordable housing developments in member . communities, MCCF offers you flexibility in responding to your local financing needs: - · MCCF members are able to originate loans of up to ten times the amount they have on deposit with the Fund. For example, a Class B member who deposits $50,000 in the Fund can originate loans of up to $500,000 --- with no Umi! on the number of loans that a member can originate. · Members determine which projects they wish to support through the MCCF Loan Fund, which can be used as a gap-financing source for nearly any local economic development or housing project. · By selling loans to secondary capital markets on an advance commitment basis, the originating MCCF member significantly reduces their loan loss risk. · MCCF's loan officers work closely with members, prospective borrowers, and other participating lenders in analyzing and structuring financing deals that best meet the needs of all parties. The interest rate and terms of all MCCF loans are negotiable, with most loans subordinate to the lead lender in the financing package. MCCF staff prepares all documents for loan closings and negotiates the sale of all loans to the secondary market, without any cost to our members. · MCCF members will be able to take advantage of the New Markets Tax Credit program, which provides for below market rate loans to eligible borrowers; without having to handle all of the paperwork associated with participation in this new Federal economic development initiative. · We handle all report filings that may be required under the Minnesota Business Subsidy Law, . which allows our members to focus their time and energy on other local development' projects. ' 44 . ," 'Our members have access to the technical assistance and expertise available ITom the MCCF staff to support other local development financing activities. . . Membership in the MCCF comes with a money back guarantee. Funds deposited hi the Loan Fund · Escrow Account (managed by Wells Fargo) remain the property of each respective member, and may only, be used to fund MCCF loans. Members may withdraw their money from the Fund anytime after,tÌ1ree years fr()1l1thedate,Ç>fqeposit in th~;es~r",'Y a~unt,..?r reduce their position in the Fund down to the $25,000 level--for any reason whatsoever: . ," A self-sustaining loan fund , , The MCCF is a self-sustaining development resource, with the continual recapitalization of the Fund through the sale of pre-approved loans to the secondary market. Our loans are structured to best meet the needs of our members, the borrowers, other participating lenders, and the community. One of the primary considerations for our members as loan terms and conditions are being negotiated is how the secondary market will price the loan for purchase. The actual price to be paid for MCCF loans is known to the participating member before a formal loan commitment is made. If the price offeiéd by the market is discounted ITom par value, the MCCF member originating the loan is responsible for funding the difference between par value and the loan's sale price. There is no cost to members when loans are sold at par value. On the other hand, if the loan is sold at a ' premiu~ the member receives the premium payment (that amount in excess of the loan's par value). Under this approach, the MCCF loan pool is continually recapitalized and members are able to originate an unlimited number ofloans in their communities. Who pays for the cost of operating the Fund? -: '-; ,.' -j.-" ~-,:' . -" -. '. ~~. - · Th~ 'Fund'~primary rèvênûe':sourcè§ are interest earnings on the pooled funds contributed by MCCF members and loan origination fees charged to borrowers. Members do not pay for the services provided by the fund manager that pertain to the struétuìing-ofMCCF loans or for any other fund~operating costs. ~ . - - - - - Member-governed. Member-focused. The business affairs of the Fund are carried out under the direction of a nine-member Board of Directors. MCCF members have the responsibility to elect six directors (two directors ITom each membership class). The six elected directors fill the remaining three at-large board seats. The ongoing input and advice of the Fund's members helps to ensure that the Fund will be responsive to meet the challenges of even the most complex development financings. Who manages the Fund? The Northland Institute, a Minnesota nonprofit corporation with a rural economic development focus, provides a full-range of management services under contract with the MCCF. Scott Martin, a Certified Economic Development Finance Professional with more than 25 years of business and economic development experience, serves as Fund Manager under the direction of the Board of Directors. Want to learn more about the MCCF? For more information about becoming a member of this unique and innovative new rural deyelopment fmancing resource, check out Ollr web site or call us. ' , " ..;'" ": ,- '-? .,--- ;" · www.mncommunitycapitalfund.org ". ."~ (952) 541-9674 - ¡ {< - -:'; ~. f_ -:' LlS