HomeMy WebLinkAbout2003 [04] Apr 17
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- www.cityofstjoseph.com ity of St. Joseph
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25 College Avenue North
PO Box 668
St. Joseph. MN 56374 St. Joseph Economic Development Authority
(320) 363-7201 SPECIAL Meeting Notice
Fax: (320) 363-0342 Thursday, April 17, 2003
ADMINISTRATOR 7:00 p.m. City Hall
Judy Weyrens
MAYOR 1. Call to Order.
Larry J. Hosch
2. Business.
.COUNCILORS
Alan Rassier The City Council will conduct a public hearing on the proposed
Ross Rieke Redevelopment Plan for the St. Joseph Public Works Project and take
Gary Utsch
Dale Wìck action on a resolution approving the Redevelopment Project Area and
Plan. Following the hearing and Council action, the EDA will take action
on:
a. Resolution EDA03-03 Approving Redevelopment Project Area
. and Plan for the St. Joseph Public VVorks Project.
3. Adjournment.
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· I Attachment: ~ or No I
REQUEST FOR COUNCIL ACTION
DATE: Aprill, 2003
Economic Development Authority ~~
ORIGINATING DEPARTMENT -'''..''. EP ARTMENT APPROVAL
AGENDA ITEM
A Joint Session of the EDA and City Council will be held to discuss the following:
1. City Council Public Hearing on A Redevelopment Plan and Project Area- Municipal Public
Works Maintenance Facilitý
2. City Council Resolution Approving Redevelopment Project Area and Plan for the Municipal
Public Works Maintenance Facility
¿ EDA Resolution Approving Redevelopment Project Area and Plan for the Municipal Public
Works Maintenance Facility.
PREVIOUS ACTION
· On March 20th the Council adopted a resolution Initiating the Process for Approval of the Redevelopment
Project Area and called for a public hearing on the Redevelopment Plan. The EDA also took action to
initiate the process at their March 19,2003 meeting.
RECOMMENDED BOARD ACTION
Following the public hearing and public input, Adopt the Resolution Approving the Redevelopment
Project Area and Plan.
FISCAL IMPACT
The above action would authorize the issuance of $545,000 in public project revenue bonds to finance the
acquisition ofland and construction of a Public Works facility. A bond payment schedule is attached.
COMMENTS/RECOMMENDATIONS
The EDA will take action on the plan and project area, following the City Council's action. They will
then adjourn their special session.
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REDEVELOPMENT PLAN
FOR
ST. JOSEPH PUBLIC WORKS PROJECT
DATED APRJL 17, 2003
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ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF ST. JOSEPH, MINNESOTA
[Note: This assumes that the Authority is acquiring land for this Project]
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TABLE OF CONTENTS
Page .
1. INTRODUCTION AND LEGAL BASIS ........................................ ...............................1
A. Intent. . . . . .. . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 1
B. Statement.............................................................. ............. ................... .. ...... .. .... 1
C. Redevelopment Area Boundaries........... .... .........................................................1
D. Statement of Authority.................................... .... ................... ......................... .... 1
E. Findings and Declaration........................... .........................................................2
II. REDEVELOPMENT PROGRAM.................................. ................... ............................2
A. Redevelopment Plan Objectives........ ........ .............. ............................................2
B. Land Use............................................................................................................ 3
C. Redevelopment Activities. ... ........ ....,.. ... .......... .............. ......... .......... ..................3
D. Financing Plan......... ............................:...... ............. ...........................................3
E. Development Standards...................................................................................... 4
F. Environment Controls.......... ............ ........... ....................... ........ .........................4
G. Administration of Project .... ..... .......... ....... .............. ............. ...............................4
H. Modification of Plan '" ........................ ..... '" ................................ ........................4
Exhibit A - Redevelopment Area Boundary Map
Exhibit B - Budget
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. I. INTRODUCTION AND LEGAL BASIS
A. Intent
The Economic Development Authority of the City of St. Josep~ Minnesota (the
"EDA"), proposes to establish a Redevelopment Project Area as described herein
(the "Redevelopment Project Area"), in connection with the acquisition and
bettennent ofa new public works facility (the "Public Works Facility"). The City
of St. Josep~ Minnesota (the "City") willlease'the building ITom the ED A with
an option to purchase pursuant to a lease with option to purchase agreement.
Revenue bonds in the principal amount not to exceed approximately $545,000 are
proposed to be sold by the EDA to finance the redevelopment project costs. The
revenue bonds will be secured by the payments to be made by the City under the
lease with option to purchase agreement.
In the remainder of the Redevelopment Area the EDA proposes to facilitate, as
appropriate, private development by acquiring land and preparing it for private
development and by constructing public inftastructure improvements.
B. Statement
The City and EDAhave determined that conditions exist within the
Redevelopment Area which have prevented further development ofland by
. private enterprise. It has been found that the Redevelopment Area is potentially
more useful ànd valua1?le for contributing to the public health, safety and welfare
than has been realized under existing development.
The development of these parcels are not attainable in the foreseeable future
without the intervention of the EDA in the private development process. The
EDA has prepared the Redevelopment Plan, which provides for the elimination
of these conditions, thereby making the land useful and valuable for contributing
to the public healt~ safety and welfare.
C. Redevelopment Area Boundaries
The boundaries of the Redevelopment Area are outlined on the Redevelopment
Area Boundary Map, Exhibit A.
All land included in the Project Area is within the legal boundaries of the City.
D. Statement of Authority
Minnesota Statutes Section 469.001-469.047 (Housing and Redevelopment
Authority Act) grants municipalities the authority to designate redevelopment
areas within the boundaries of the municipalities. Within these areas, the
municipality may adopt a redevelopment plan and establish a project consistent
. with the municipality's public purpose. The project as contemplated by this plan
consists ofa redevelopment project as defined in Section 469.001, Subdivision
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14. The lease with option to purchase agreement is authorized under Minnesota .
Statutes, Section 465.71.
E. Findings and Declaration
The City and the EDA make the following findings:
1. The certain parcels ofland in the project area would not be made available
for redevelopment without some public financial aid.
2. The redevelopment plans for the Redevelopment Area in the City will
afford maximum opportunity consistent with the needs of the locality as a
whole, for the redevelopment of the area by private enterprise.
3. The Redevelopment Plan confonns to the general plan for development of
the locality as a whole.
n. REDEVELOPMENT PROGRAM
A. Redevelopment Plan Objectives
The EDA, through implementation of this plan, seeks to achieve the following
objectives:
1. To provide for the least costly and most efficient Public Works Facility for .
the City required to provide adequate City services to the region.
2. To promote and seek the orderly and harmonious development ofthe
Redevelopment Area.
3. To provide logical and organized land use for the entire Redevelopment
Area consistent with the Comprehensive Land Use Plan and the Zoning
Ordinance of the City.
4. To promote the prompt development of property in the Redevelopment
Area with a minimal adverse impact on the environment.
5. To provide general design guidance in conjunction with a suitable
development contract in order to enhance the physical environment of the
area.
6. To provide adequate utilities and other public improvements and facilities,
to enhance the Redevelopment Area and the City for new and existing
development.
7. To assist the financial feasibility of private projects to the extent necessary
and where there is a corresponding level of public benefit.
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. 8. To enhance the overall economy of the City and surrounding area by
retaining current, and providing additional employment opportunities for
the residents of the City and surrounding community.
9. To increase the City's tax: base by providing critical public infrastructure
improvements for the City.
10. To stimulate development and investment within the Redevelopment Area
by private interests.
B. Land Use
Public owned and operated facilities necessary for the public health, safety and
welfare are permitted uses in the Redevelopment Area.
C. Redevelopment Activities
1. Acquisition
The Authority intends to acquire property in the Redevelopment Area on which
the Public Works Facility will be located. Other than that property, other property
in the Redevelopment Area will be acquired by the EDA if and when required to
facilitate development or redevelopment within the Redevelopment Area.
. 2. Relocation
It is not expected that any person~ will be displaced as a result of tbis
Rëdevelopment Plan.
3. Public Warks Facility and Other Public Improvements.
The EDA proposes to cause the Public Works Facility to be constructed and, as
appropriate, other public improvements within the Redevelopment Area.
The PublicW orks Facility will be leased to the City under a lease with option to
purchase agreeme~t.
D. Financing Plan
1. Project Budget
Attached hereto as Exhibit B is a budget wbich details estimated development
costs associated with the acquisition and betterment of the Public Works Facility
currently contemplated. The items of cost and the costs thereof shown in the
budget are estimated to be necessary based upon information now available. It is
anticipated that the items of cost and the costs thereof shown in each category in
. the budget may decrease or increase, but that the total project cost will not exceed
the amount shown above.
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2. Source of Funds and Security .
The City is entering into the lease with option to purchase agreement with the
EDA pursuant to Mìnnesota Statutes, Section 465.71. The lease with option to
purchase agreement is payable £fom general sources including taxes, and its
payment is not limited to a specific fund or specific source of revenues. Sources
of funds for any other public improvements include rates and charges,
assessments and other available funds of the EDA or City.
3. Bond Issue Details
The EDA will issue approximately $545,000 in public project revenue bonds to
finance the acquisition and betterment of the Public Works Facility. No bonding
has currently been structured to finance costs of any other public improvements.
E. Development Standards
The EDA will consider among other things, the following factors when evaluating
development proposals for projects within the Redevelopment Area seeking
public assistance and support:
1. Degree to which redevelopment objectives are provided for or enhanced.
2. Consistency with this plan and the St. Joseph Comprehensive Plan. .
F. Environment Controls
It is presently anticipated that the proposed development in tne Redevelopment
Area will not present major environmental problems. All municipal actions and
public improvements will be carried out in a manner that will comply with
applicable environmental standards. The environÍnental controls to be applied
within the area are contained within the codes and ordinances of the City.
G. Administration of Project
The S1. Joseph City Council has authorized the Economic Development Authority
of the City to be responsible for seeing tbat the contents of this Plan are promoted,
implemented and enforced.
H. Modification of Plan
A Redevelopment Plan may be modified at any time. The modification must be
adopted by the ED A and the City, upon notice and after the public hearing
required for the original adoption of the Redevelopment Plan.
Changes that do not alter or affect the exterior boundaries and do not substantially
alter or affect the general land use established in the plan, shall npt constitute a .
modification of the Redevelopment Plan, nor require approval by the City.
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EXHIBITB .
Budget
Eštimated Construction and Related Expenses $500,000
Capitalized Interest 20,635
Costs ofIssuance 11,375
DiscountF actor 13.625
Total Issue (Rounded) $545,000
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545-15
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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ST. JOSEPH, MINNESOTA·
PUBLIC PROJECT REVENUE BONDS OF 2003
PUBLIC WORKS FACILITY
. . ,
HH[1gW1ggnjii[gHU¡H1!$~~~f¡~¡:f;if1~j)t$~1[:1W1¡~¡i¡1f¡[¡:¡:¡¡¡¡idHHi@[H![:\1¡ :1::Hiimm!!D¡iiH~~v~~[:$.~~r,¢~$inHH1:ii:¡¡W¡H: ::¡H:¡¡!H:¡n¢~~h:1~J~w¡::¡H[i¡![¡:[1 .
Estimated Total Statutory Annual
(12-1) Interest Debt 0.00% Capitalized Other Municipal Surplus! ' Cumulative
ear Principal Rates Interest Pa ment Coverage Interest Pa ments Funds Deficit Balance
003 . 0 0.00% 10,630 10,630 ' 10,630 20,635 0 0 10,005· 10,005
004 25,000 2.50% ' 21,260 46,260 46,260 0 · 47~000 740 10,745
005 30,000 2.75% 20,635 50,635 50,635 0 47,000 -3,635 7,110
006 30,000 3.00% . 19,810 49;810 49,810 0 47,500 -2,310 ,4,800
007 30,000 3.10% 18,910 48,910 48,910 0· 48,000 -910 3,890
008 3Ó,000 3.25% 17,980 47,980 47,980 0 48,500 '·520 4,410
009 35,000 3.40% 17,005 52,005 52,005 0 49,000 ~3,O05 1,405
.010 35,000 3.60% 15,815 50,815 50;815 ° 49,500 -1,315 90
.011 35,000 3.80% 14,555 49,555 . 49,555 0 50,000 445 535
:012 35,000 4.00%. 13,225 48,225 48,225 ,0 50,000 1,775 2,310
.013 40,000 4.20% 11,825 . . 51,825 51,825 0 50,000 -1,825 485
.014 ·40,000 4.40% 10,145 50,145 50,145 0 50,000 -145 ~40
~015 40,000- 4.50% 8,385 48,385 48,385 0 50,500 - 2,115 2,455
~016 45,000 4.60%. . 6,585 51,585 51,585 0 50,500 ';'1,085 1,370
~. 45,000 4.70% 4,515 49,515 49,515 0 50,500 985 2,355
50,000 4.80% 2,400 52,400 52,400 ° 50,500 -1,900 455
. 545,000. 213,680 758,680 758,6?0 20,635 0 738,500 -455
'~PP'i¡¿~tlØ ¡;¡¡bJ¡ f.~~ø.$~ :¡!n[¡¡::1H1m[::H:¡!\~¡!¡\¡![¡m ¡¡![H:H[[¡!::[¡[iH[ 'jaQri~Ui#øfiW¡¡fti~hWfffHmHHW:YH¡UHHH\@¡¡¡HHTHHHHHHy<g¡¡UH/¡
:st. Public Works Building Project 500,000 Bonds D~ted: . 6/1/2003
:st. Furniture, Fixtures, Equipment 0 Bonds Mature: 12/1/04 Through 12/1/18
:st. Architect/Engineer Fees 0 Interest Payments: 12/1/03 & Each 6/1 & 12/1 Thereafter.
:st. Contingency. .0 Call Option: 12/1/2009 @ Par Plus Accrued'Ínterest
Less: City Cash Contribution 0 Registrar/Pay Agent: . U.S. Bank Trust, N.A., St. Paul
Less: Investment Proceeds (A) ~295 Purchase Price: $,531,375
rotal Hard Costs 499,705 Est. Average Coupon: 4.229%
Est. Net Effective Rate: 4.499%
Add: Issuance Expenses Bond Sale Date: Late May, Early June, 2003
::st. Underwriter Discount @2.50% 13,625 Bond Closing Date: Approx. 21 Busihess Days After Sale.
:apitalized Interest (12 Months) 20,635 Bond Counsel: Briggs & Morgan, PA
::st. Financial Advisory Fee 0
::st. Bond Counsel 7,500·
~ating Fee 0 (A) $100,000 Invested @ 1.20% For 90 Days,
::st. O/S Printing 650
::st Registration (One-Time Fee) 3,225
Total 545,340
.ed For Issuance II 545,00011
Monte Eastvold, V.P., Partner, Northland Securities, ·Inc. Dated: 3/6/2003 @)
NOTICE OF PUBLIC HEARING .
CITY OF ST. JOSEPH
STEARNS COUNTY
STATE OF:MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of 81.
Joseph, Minnesota, will hold a public hearing on April 17, 2003, at a meeting of the Council
beginning at approximately ~p.m., at the S1. Joseph City Hall, 21 1st Avenue Northwest, in
the City of 81. Joseph, Minnesota, relating to the proposal of the Economic Development
Authority of the City of 81. Joseph, Mìnnesota, to establish a Redevelopment Project Area in
connection with the acquisition and betterment of a new public works facility and adopt the
Redevelopment Plan for the Redevelopment Project Area; all pursuant to and in confonnity with
applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.090
through 469.1081. A copy of the relative documentation proposed to be considered at the
hearing will be on file and available for public inspection at the office of the City Administrator-
Clerk at the S1. Joseph City Hall at least 10 days prior to the public hearing.
All interested persons may appear at the April 17, 2003, public hearing and present their
views orally or in writing.
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. CITY OF ST. JOSEPH, MINNESOTA
Member introduced the fòllowing resolution and moved its adoption:
. RESOLUTION APPROVING REDEVELOPMENT PROJECT AREA AND PLAN
BE IT RESOLVED by the City Council (the "Council") of the City of St. Joseph,
Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01 It has been proposed by the Economic Development Authority of the City ofSt.
Joseph, Minnesota (the "Authority"), that the Authority establish a Redevelopment Project Area
as described herein (the "Redevelopment Project Area"), in connection with the acquisition and
betterment of a new public works facility and adopt the Redevelopment Plan for the
Redevelopment Project Area (the ftPlanft); all pursuant to and in conformity with applicable law,
including 1v1innesota Statutes, Sections 469.001 through 469.047 and 469.090 through 469.1081;
all as reflected in that certain document entitled in part "Redevelopment Plan for St. Joseph
Public Works Project" dated April 17, 2003, and presented forthe Council's consideration.
1.02 The Council has investigated the facts relating to the Plan.
. 1.03 The City has performed all.actions required by law to be performed prior to the
adoption and approval of the Plan, including, but not limited to, a review of and written comment
on the Plan by the City Planning Commission, and the holding of a public hearing thereon
following at least 10 but not more than 30 days' prior ·published notice thereof, as required by
law.
Section 2. Findings for the Adoption and Approval of the Plan.
2.01 The Council hereby finds that the Plan conforms to the general plan for the
development or redevelopment of the City as a whole because the Redevelopment Project Area
is properly zoned for the intended uses, and the anticipated development is in furtherance oflong
range plans of the City for that area; and that the Plan will afford maximum opportunity
consistent with the sound needs of the City as a whole,· for the development of the
Redevelopment Project Area and adjacent areas by private enterprise because they will enable
the Authority to provide and finance necessary public facilities.
2.02 The Council further finds that the Plan is intended and, in the judgment of this
Council, its effect will be, to promote the public purposes and accomplish the objectives
specified in the Redevelopment Plan for Redevelopment Project Area.
Section 3. Approval and Adoption of the Plan. The Plan, as presented to the Council
on this date, including without limitation the findings and statements of objectives contained
there~ are hereby approved, ratified, established, and adopted and shall be placed on file in the
. office of the City Administrator-Clerk.
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Adopted by the City Council on April 17, 2003. ·
Mayor
City Administrator-Clerk
The motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
Whereupon the resolution was declared passed and adopted. ·
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. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ST. JOSEPIL MINNESOTA
Member introduced the following resolution and moved its adoption:
RESOLUTION APPROVING REDEVELOPMENT PROJECT AREA AND PLAN
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic
Development Authority of the City of St. Joseph, Minnesota (the "Authority"), as follows:
Section 1. Recitals.
1.01 It has been proposed that the Authority establish a Redevelopment Project Area as
described herein (the "Redevelopment Project Area"), in connection with the acquisition and
betterment of a new public works facility and adopt the RedevelopmentPlan for the
RedevelopmentProject Area (the "Plan"); all pursuant to and in conformity with applicable law,
including Minnesota Statutes, Sections 469.001· through 469.047 and 469.090 through 469.1081;
all as reflected in that certain: document entitled in part "Redevelopment Plan for Public Works
Project" dated April 17, 2003, and presented for the Board's consideration.
1.02 The Board has investigated the facts relating to the Plan and has caused the Plan .
to be prepared.
. 1.03 The Authority has performed all actions required by law to be performed prior to
the adoption and approval of the Plan. The Authority has also requested that the St. Joseph City
Council hold a public hearing on the Plan and that the S1. Joseph Planning Commission provìde
written comment on the Plan.
Section 2. Findings for the Adoption and Approval of the Plan.
2.01 The Board hereby finds that Plan conforms to the general plan for the
development or redevelopment of the City as a whole; and that the Plan will afford maximum
opportunity consistent with the sound needs of the City as a whole, for the development of the
Redevelopment Project Area and adjacent areas by private enterprise.
2.02 The Board further finds that the Plan js intended and, in the judgment of the
Board, its effect will he, to promote the public purposes and accomplish the objectives specified
in the Redevelopment Plan for the Redevelopment Project Area.
Section 3. Approval and Adoption of the Plan. The Plan, as presented to the
Authority on this date, is hereby approved, established, and adopted.
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Adopted by the Board on April 17, 2003. ·
President
Secretary
The·motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
Whereupon the resolution was declared passed and adopted.
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. CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes - VVednesday, March 19,2003
Present: EDA Board Members Mike Deutz, Ross Rieke, Tom Skahen and Larry Hosch. Absent: EDA
Member Bruce Gohman. Also present: Joanne Foust of Municipal Development Group, Chris Rice of
Rièe Buildings, Dave Mehr and Cory Ehlers.
Chair Deutz called the regular meeting of the St. Joseph EDA to order at 4:03 p.m.
Agenda.
Moved by Hosch, seconded by Rieke to approve the agenda with Business Item B, Approval of Building
and Site Plan for 700 Fifteen Avenue North, discussed prior to the Financial Report. The agenda was
approved as amended 4:0.
Minutes.
Moved by Skahen seconded by Rieke to approve the minutes of the February 19, 2003 EDA meeting as
presented. Minutes were approved 4:0.
Building and Site Plan - 700 Fifteen Avenue North.
EDA members reviewed a building and site plan for a 16,000 square foot multi-tenant industrial facility
proposed for Lot 2, Block 1, Buettner Business Park 11 or addressed as 700 Fifteenth Avenue NE. Mr.
Dave Mehr, developer, and Mr. Chris Rice, Rice Buildings, the architect for the project were present to
discuss the project and respond to questions. Mr. Rice noted the site plan illustrates a possible 16,000
square foot future addition which would result in a 32,000 square foot building. A drawing illustrating the
proposed crème color siding was displayed.
. The EDA discussed the proposed plans as they related to the Protective Covenants in place for the
Buettner Business Park, and made the following notations:
1. The Covenants require open areas, excluding parking, driveway and storage areas to be
landscaped with trees, shrubs or planted ground cover. The plan illustrates berms and plantings
but did not identify the installation of groundcover for the remainder of the lot. Mr. Mehr and Mr.
Rice indicated that areas which are disturbed as a result of the construction will be restored and
planted with grass seed. Undisturbed areas will remain with its current groundcover. The EDA
indicated for their purposes this would be acceptable, but noted the Planning Commission may
further discuss this and also referenced the city's weed ordinance.
2. Section 3.05 of the Covenants outline foundation and frost footing requirements. A foundation plan
was not submitted as a part of the plans for EDA review. Mr. Rice indicated they would comply with
the complete perimeter foundation with frost footings extending a minimum 8" above the final grade,
and that he would supply a foundation/footing drawing for the Planning Commission review. EDA
approval is contingent upon compliance with this section.
3. Although it is not addressed in the covenants, the EDA briefly discussed the need for a paved area
adjacent to the entrance to the loading docks to eliminate or reduce the Class II gravel from
washing into the city street and storm sewer. The EDA informed Mr. Mehr and the architect that
this would most likely be an issue raised by the Planning Commission.
4. Also, not addressed by the covenants but discussed by the EDA was the need for a heavier duty
paving on the parking lot. It was noted that the light duty (1 W') paving would be too thin and that
the Planning Commission would discuss this.
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EDA Minutes - March 19,2003 Page 1
5. Finally, the EDA suggested the architect coordinate the completion of a storm water plan with
· Joe Bettendorf and review sprinkler requirements with the Building Inspector.
Moved by Hosch, seconded by Skahen to approve the building and site plan for BL T Properties for Lot2,
Block 1, Buettner Business Park /I (700 Fifteenth Avenue NE) as it relates to the Protective Covenants for
the Buettner Business Park provided required foundation and frost footing requirements outlined in
Section 3.05 are complied with. With all in favor the motion was approved 4-0.
Mr. Mehr and Mr. Rice departed from the meeting at 4:20 p.m.
Mr. Cory Ehlers joined the EDA meeting at 4:20 p.m.
Accounts Payable/Financial Report.
The EDA discussed accounts payable for the month of March, 2003 in the amount of $1,782.48 for
professional services and a TIF payment for the second % of 2002 in the amount of $7,606.18.
Moved by Rieke seconded by Skahen to approve March Accounts Payable as presented. The accounts
payable were approved 4:0.
EDA members acknowledged the financial report which illustrated year-to-date expenditures were at
10.12 percent of the total annual budget.
Business Questionnaire.
EDA members briefly discussed the questionnaire developed to receive input from developers on the
economic development, planning and administrative processes in St. Joseph. Members noted that the
Planning Commission and Council have not yet reviewed or commented on the proposed survey. They
requested MDG, Inc. prepare a memo for the Planning Commission and Council explaining the intent of
· the survey and requesting their comments on it. EDA members also requested a second version of the
form be created to include questions in the present tense for projects that are still underway and that the
form be reformatted to allow more space for responses and contacUreturn mailing address and phone
number for the St. Joseph EDA, resulting in a full two-page questionnaire. The revised questionnaire and
comments from the Planning Commission and Council will be included on the April agenda.
Municipal Maintenance Facility.
Chairman Deutz introduced Cory Ehlers and noted that he had invited him to attend the EDA meeting to
provide background information on the proposed Maintenance Facility, as Mr. Ehlers was one of the two
Council members who served on the Maintenance Facility Task Force in 2001 and 2002, along with
public works staff employees and Mr. Dean Wick from Outsource Management.
Mr. Ehlers noted that in 2001 the Council identified the need for an expanded maintenance facility due to
its current condition and limited space, with the public works equipment currently stored in four facilities.
The Committee reviewed possible construction options which could be completed with the approximate
$300,000 available in various reserve funds of the city for the project. After significant review, the
committee recommended the construction of a 12,000 square foot building, slab on grade, at the site of
the current maintenance facility. The current facility, which is 8,500 square feet, was proposed to be
removed or demolished.
It was reported that four bids were received from contractors for the project with prices ranging from
$381,750 to $456,000. A contract was awarded to Shingobee Builders for $381,750, which did not
include the alternate bid price for building demolition. The Council had hoped someone would relocate
the current building and demolition costs of $18,000 would not be incurred. Since the construction cost
came in higher than the $300,000 available in the city funds, a lease-purchase arrangement with the bank
was investigated. Due to funding limitations, alternative sites were not discussed at that time.
· Hosch noted that the City Council has recently discussed the construction of the maintenance facility and
the best long-term site for the building. He noted that he has concerns with the site limitations at the
EDA Minutes - March 19, 2003 Page 2
. current location and feels strong that it is in the best long-term interest of the city to acquire a larger site.
He added that the proposed site, Lots 1 and 2, Borgert Industrial Plat, is five acres in size and could
accommodate the proposed 12,000 square foot building, future additions and possibly a city water tower
and future police department office space, as that need arises.
Hosch added that with proposed legislation the City Council is reviewing alternative sources of financing
for the facility. He noted that with levy limits, the city would like to reserve its cash and the Council would
like the EDA to act as a conduit financer issuing lease-revenue bonds to fund the project. The City would
make lease payments to the EDA to allow the EDA to make its bond payments. This option would provide
the City with the ability to levy; in the event this should be needed.
Chairman Deutz noted he supports the construction of a new maintenance facility but has concerns with
the proposed acquisition of Lots 1 and 2, Borgert Industrial Plat. He noted that the EDA's role is to
encourage business development and expand the tax base. Deutz reported that he had contacted the
County Assessor's office to obtain estimates on the potential tax revenue which could be generated from
the two lots should an industry construct a facility with an assessed market value of $700,000 and the
land have an assessed value of $75,000. He stated that the Assessor estimated a total annual tax of
$26,000 of which $10,300 would be the city's share. Deutz also expressed concerns with possible
changes in the project cost or scope after EDA approval of the project financing. For these reasons,
Deutz noted he would not support the request for the EDA to facilitate the project with a lease-revenue
bond.
Rieke noted that he believes the City needs to be visionary and look at the best long-term solution. He
noted that the current site has space limitations for future expansion. He also noted that while the
proposed purchase of Lots 1 and 2, Borgert Industrial Plat will remove land from the tax rolls, the
purchase of any site will have the same result. He also noted that he has considered whether or not the
city can afford to purchase the lot, but also whether or not the city can afford not to. He noted that land
. within the city is being developed at a rapid rate and sites such as this may not be available in the future.
Ehlers departed from the meeting at 5:20 p.m.
Ajoint session of the EDA and City Council was called to order at 5:30 p.m. by Mayor Hosch.
In addition to the EDA members already present (Deutz, Rieke, Hosch and Skahen), the following were
also present: Council members Alan Rassier, Gary Utsch and Dale Wick. Also present were Dick, Jim
Marthaler, City Administrator Judy Weyrens and Dean Wick of Outsource Management.
Mayor Hosch provided an overview of the request from the City Council for the EDA to authorize the
purchase of Lots 1 and 2, Borgert Industrial Plat and to adopt two resolutions, which would initiate the
process of issuing lease-revenue bonds for the financing of the maintenance facility for the city's public
works department.
Dean Wick, Outsource Management, discussed the current bid for $389,000 and noted that if the project
is relocated to the alternate site the city could eliminate the cost of the sewage injector as well as the
concrete retaining wall. He also noted that since another party has not acquired the current maintenance
facility, the cost of demolition ($18,000) would need to be added to the current bid if the current site is
utilized. He added that soil borings at the proposed site would be required.
Deutz inquired if the possibility of expanding on the Lampert site adjacent to the current maintenance
facility had been explored. Dick responded that this had been investigated and deemed undesirable.
The water table on the lot is three feet below the soil and the soil is not appropriate for development. He
reported that debris has been hauled into the area and utilities are not extended to that lot.
Foust reviewed the process for the EDA and Council and distributed copies of a proposed project
. schedule, prepared by the city's bond counsel. It was noted that the EDA is being asked to take action on
two items this evening (1) adoption of a resolution establishing procedures relating to compliance with
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- reimbursement bond regulations under the internal revenue code and (2) adoption of a resolution
initiating the process for adoption of a redevelopment plan. It was noted that the Council would take
- action on March 20th to call for a public hearing on the approval of the redevelopment area and that the
EDA and Council would review the project and take action again at their regular meetings in April.
EDA Action:
Moved by Hosch, seconded by Skahen to adopt Resolution EDA03-01, A resolution establishing
procedures relating to compliance with reimbursement bond regulations under the internal revenue code
and Resolution EDA03-0, A resolution initiating the process for adoption of a redevelopment plan, which
would address the financing of a maintenance facility for the pUblic works department of the city, with the
issuance of a lease-revenue bond not to exceed $545,000. The Motion was approved 3-1 with Deutz
voting nay.
Moved by Rieke, seconded by Deutz to authorize EDA members Skahen and Hosch to facilitate the
execution of a purchase agreement for Lots 1 and 2, Borgert Industrial Plat for a price not to exceed
$225,000 with the purchase agreement contingent upon satisfactory soil borings and approval of the EDA
financing via a lease-revenue bond. Motion carried 4-0.
The Council adjourned their meeting at 5:55 p.m. Mayor Hosch and Council members Gary Utsch
and Dale Wick departed from the meeting along with Dick, Jim Marthaler, and Dean Wick of Outsource
Management.
The EDA continued with their regular agenda.
Inventory of Available Commercial and Industrial Sites.
Foust distributed a list of available commercial and industrial sites which was compiled following written
. and phone contact with various property owners. She noted that a few owners have not yet finalized
information for the inventory including the American Legion which was going to be discussing the
information at a meeting and Kresbachs who recently purchased the former K&L Partnership properties
on the south side of County Road 75 on the east side of St. Joseph.
High Speed Data Line.
Foust provided an update on contacts Smith-Strack of MDG, Inc. had with both U.S. Cable and Astound
regarding the installation of high speed data line in the commercial and industrial areas north of County
Road 75. Rieke suggested contacting Cloud Net regarding wireless service. Deutz stated that a number
of businesses has expressed a desire for the service and it will be a growing need, therefore he felt the
EDA should facilitate this process.
Administrator Weyrens noted that the City has a franchise agreement in place with Astound which may
require them to install the service. It was the consensus of the EDA to have MDG, Inc. prepare and send
a letter to Astound referencing the franchise agreement and requesting they move forward with the
installation as soon as possible, as required under the contract.
Prospect List/Activity Report.
A report outlining communication with various contacts was included in the EDA's packet. A brief
overview of several projects was provided.
Board Member Announcements.
Deutz clarified his support for the maintenance facility construction but opposition to the removal of land
from the tax rolls, where he felt future industrial development could occur. Further discussion relating to
this topic followed.
Next Meeting
. The next official meeting of the EDA was scheduled for Wednesday, April 16, 2003 at 4:00 p.m.
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. Adjournment
Moved by Rieke, seconded by Deutz to adjourn. All present voted in favor of adjournment, the EDA
meeting adjourned at 6:30 p.m.
.
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