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HomeMy WebLinkAbout2003 [06] Jun 18 ^ \ ~., ity of St. Joseph . www.cityofstjoseph.com 25 College Avenue North PO Box 668 St. Joseph. MN 56374 St. Joseph Economic Development Authority (320) 363·7201 Meeting Notice Fax: (320) 363·0342 Wednesday, June 18,2003 ADMINISTRATOR 4:00 p.m. City Hall Judy Weyrens MAYOR 1. Gall to Order. Larry J. Hosch 2. Approval of Agenda. COUNCILORS Alan Rassier 3. Approval of Minutes. Ross Rieke . a.May 12, 2003 - Special Meeting. Gary Utsch Dale Wick b. May 21, 2003 - Regular Meeting. 4. Financial Report. a. Approval of Accounts Payable. . b. Financial Report. 5. Business. a. High Speed Data Line to Industrial Areas. b. Business Questionnaire. c. Approval of Change Order - Maintenance Facility 6. Director Report. a. Prospect List! Activity Report. b. Marketing Agreement-Buettner Business Park 7. Board Member Announcements. 8. Adjournment. . .. < . . CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes - Special Joint Session with City Council Monday, May 12, 2003 Present: EDA Board Members Mike Deutz, Bruce Gohman, Ross Rieke and Tom Skahen. Absent: EDA Board Member Larry Hosch. Also present: City Council Members AI Rassier, Gary Utsch and Dale Wick, City Administrator Judy Weyrens, Outsource Management Representative Dean Wick, City Engineer Joe Bettendorf, Project Manager Jeff Baggenstoss and Vice President Steve Schultz from Shingobee Builders, Public Works Superintendent Dick Taufen, Wastewater Treatment Supervisor Jim Marthaler and Cynthia Smith-Strack of Municipal Development Group. Chair Deutz called the special EDA meeting to order at 5:06 p.m. The City Council meeting was called to order by Acting Mayor Utsch. Maintenance Facility Change Orders City Administrator Weyrens gave a brief update on an organizational meeting held on Friday, May 9,2003 with representatives from the City and Shingobee Builders. The purpose of the meeting was to give Shingobee specific direction on what additional bid information was needed to proceed with change order review. At the meeting, the builder was directed to reinsert previously removed items including fencing and landscaping. . Baggenstoss then provided an overview of revised change order number seven which was distributed at the meeting. The revised change order indicates: four additional weeks of project management and field supervision along with additional temporary facilities, testing, permits and insurance costs; site work' including the excavation of a 120' X 80' X 6' deep retention pond; water system installation; the installation of paving and pavement markings; landscaping of the site; fencing of-the site; concrete work (curb & gutter, dumpster pad, bollards for dumpster pad); steel materials (bollards); and, mechanical and electrical changes. The revised change order totaled $148,088.00. Rassier and Rieke expanded on the possibility of removing the fencing and landscaping items from the contracted work. Deutz explained past discussions regarding landscaping being performed by the Public Works Department. Rassier requested comment on individual items included in the general conditions line item. Further discussion regarding the appropriateness of the itemized charges followed including, telephone, electrical, dumpster, permit, testing and surveying services. Weyrens indicated the City could waive the building permit fee for the maintenance facility affecting both the increased cost itemized in the change order and the original building permit fee for total savings of an estimated $4,600.00. Utsch questioned whether any portion of the bituminous surfacing could be removed from the contract and installed in conjunction with other street project(s). Weyrens indicated the City had previously discussed removing the asphalt from the Shingobee contract and installing it in conjunction with other street work, thereby generating cost savings and accessing other methods of payment. Weyrens indicated the water and sewer enterprise funds can be used to fund bonds for street/utility projects. Further discussion followed regarding fencing of the site. Baggenstoss indicated the low bidder for fencing was willing to honor the bid until November of this year. If the City contracts directly with the low bidder they could achieve cost savings of twelve percent which corresponds to Shingobee's increased . overhead costs and bond/insurance costs. EDA Minutes - Special Meeting May 12,2003 Page 1 t . City Engineer Joe Bettendorf questioned the amount of granular fill needed to prepare the building pad. · Bettendorf indicated he would approve of slightly adjusting the proposed site contour to allow the excavator to skim additional base material from the site. Skahen questioned the total project cost's relationship to the proceeds of the bond. Weyrens indicated if the EDA and City Council approved the change order as presented City would have to identify an additional $74,069.00 to finance the project. Skahen clarified that the City, and not the EDA, was expected to identify additional resources which may include water and sewer enterprise funds and resources previously earmarked for parks. Skahen questioned what would occur if the EDA did not support approval of change order 7R. Weyrens clarified approval by both the EDA and City Council was required. Council member Wick indicated full denial of the change order would result in costs for storage of the building materials once they are delivered, Schultz indicated commitments from the sub-contractors would also be delayed if the change order were not approved. Additional discussion occurred with comments from Rieke, Utsch and Rassier relative to the removal of bituminous paving, fencing and landscaping from the contract and the waiving of building permit fees. Deutz inquired as to whether general conditions would decrease if the items were removed from the contract. Baggenstoss indicated work on-site could be reduced by one week for an additional cost savings of $1,800,00. Weyrens and Council Member Wick reported the following estimated reduction in costs associated with removing items from the contract as discussed: Item Removed from Chanqe Order Overall Cost Savinqs Removal of asphalt paving $27,031.20 $ 2,896.20 Removal of Fencing $ 7,963.20 $ 853.20 · Removal of Landscaping $ 8,736.00 $ 936.00 Waiving of Building Permit Fee $ 1,452.64 $ 5,152.00 Reduction in General Conditions $ 2,016.00 $ 2,016.00 TOTAL $47,199.04. $11,901.40* *Paving, fencing and landscaping will still be completed as separate city projects, therefore the overall cost savings is $11,901.40. EDA Board Member Skahen questioned whether a change order in the amount of roughly $100,804 would be acceptable for change order 7R. Deutz requested a summary of all costs associated with the project, assuming change order 7R remained at that amount. Weyrens reported site acquisition and assessments costs of $219,250; plus building costs of $381,750; plus a previous change order in the amount of $1,856 and the proposed change order 7R in the amount of $100,804. Asphalt paving, fencing and landscaping would be additional at time of installation. Strack noted zoning ordinance requires paving, fencing and landscaping in conjunction with the project. Gohman inquired as to additional fees for architecture and engineering. Wick indicated those costs were part of the original contract. Skahen asked about the total bond proceeds available for the project. Weyrens indicated proceeds were $654,734.81. Skahen confirmed the remaining shortfall would be covered by other City resources. Moved by Rieke, seconded by Skahen to approve change order 7R without asphalt paving, fencing and landscaping items for a change order 7R total of $100,804. Motion carried 4-0. The City Council entertained and approved a similar motion. Moved by Gohman, seconded by Skahen to adjourn the EDA meeting. Motion carried unanimously. The · EDA meeting adjourned at 6:16 p.m. EDA Minutes - Special Meeting May 12, 2003 Page 2 2. · CITY OF ST. JOSEPH · ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes - Wednesday, May 21, 2003 Present: EDA Board Members Ross Rieke, Tom Skahen, Bruce Gohman and Mike Deutz (4:41 p.m.). Absent: EDA Member Larry Hosch. Also present: Dean Wick of Outsource Management Services, Duane Schultz with Winkleman Construction, Tim Ross with North Central Truck Accessories, Jerry Hettwer of Hettwer Realty and Cynthia Smith-Strack of Municipal Development Group. Vice President Gohman called the regular meeting of the St. Joseph EDA to order at 4:03 p.m. Agenda. Moved by Skahen, seconded by Rieke to approve the agenda. During discussion, Strack requested the addition of item 5(e) regarding a letter from Rinke Noonan Law Offices. The agenda was approved as amended 3:0. Minutes. Moved by Skahen seconded by Rieke to approve the minutes of the April 16, 2003 EDA meeting as presented. Motion carried 3:0. Moved by Skahen seconded by Rieke to approve the minutes of the April 22, 2003 special EDA meeting as presented. Motion carried 3:0. · Moved by Skahen seconded by Rieke to approve the minutes of the May 8, 2003 special EDA meeting as presented. Motion carried 3:0. EDA Accounts Payable Moved by Skahen seconded by Rieke to approve the EDA accounts payable in the amount of $1,998.42 as presented. Motion carried 3:0. Financial Report Strack provided a brief overview of the financial report, including an inadvertent accounting inaccuracy relevant to the City contribution to the Minnesota Community Capital Fund. Moved by Skahen seconded by Rieke to approve the EDA financial report. Motion carried 3:0. Re-subdivision Lot 2, Block 1 Buettner Business Park Strack reviewed the request to re-subdivide Lot 2, Block 1 of the original Buettner Business Park plat into three separate parcels of 3.03, 3.0 and 4.0 acres. The proposed re-subdivision meets the requirements of the covenants which specify a minimum lot size of three acres. The Planning Commission will review the proposal for compliance with the subdivision ordinance and recommend an action to the City Council. Jerry Hettwer offered to answer any questions from the EDA on behalf of the property owner. Moved by Rieke seconded by Skahen to recommend approval to the Planning Commission based on concurrence with protective covenants. Motion carried 3:0. Building and Site Plan - North Central Truck Accessories EDA members reviewed a building and site plan for a 30,000 square warehouse and distribution facility proposed for Lot 3, Block 1, Buettner Business Park III. Mr. Tim Ross, developer, Mr. Duane Schultz, · Winkleman Inc. and Dean Wick were present to discuss the project and respond to questions. Mr. Wick EDA Minutes - May 21, 2003 Page 1 3 noted the site plan illustrates a possible 30,000 square foot additional structure and a possible 6,000 sf expansion for the proposed facility. . Mr. Schultz reviewed style and color of the proposed tilt-up masonry finish, 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. Wick, Mr. Schultz and Mr. Ross indicated that appropriate grass seed, such as blue grass will be installed. 2. Section 5.02 of the Covenants requires loading docks and garage entrances and exits to be screened to minimize visibility from any public street and/or any adjacent building structures front or side yard viewing point. The plan as presented did not include a landscaped buffer on the south side of the parcel adjacent to Elm Street due to the proposed buildings 400' distance from Elm Street. The EDA discussed application of the screening requirement and indicated a desire to ensure the covenants were applied. The EDA recommended a 3' berm and appropriate vegetation, shrubs and trees be installed along the southern border of the property immediately adjacent to Elm Street. Moved by Rieke, seconded by Skahen to approve the building and site plan for North Central Truck Accessories for Lot 3, Block 1, Buettner Business Park III as it relates to the Protective Covenants for the Buettner Business Park contingent upon the installation of acceptable groundcover for the remainder of the lot and the installation of a three foot high berm with appropriate screening vegetation on the south side of the property adjacent to Elm Street. Motion approved 3-0. Mr. Hettwer requested input from the EOA on the installation of an indoor firing range in the industrial . park. Strack indicated the EDA would review the proposed site plan for consistency with {;ovenants and not the zoning ordinance. Strack further indicated the zoning ordinance did not specifically allow for an indoor firing range in any zoning classification and the Planning Commission and City Coun'cil would ultimately decide whether or not to approve the use. Mr. Wick, Mr. Schultz, Mr. Ross and Mr. Hettwer departed from the meeting at 4:35 p.m. Business Questionnaire. EDA members discussed the questionnaire developed to receive input from developers on the economic development, planning and administrative processes in St. Joseph. Strack noted that the Planning Commission and Council had reviewed and approved of the proposed survey instrument. Mike Deutz joined the meeting at 4:40 p,m, EDA members discussed the possibility of adding contact names and phone numbers to the survey to allow those wishing to contact the City directly an opportunity to do so. Commissioners Deutz, Rieke and Skahen indicated a willingness to be contacted. Rieke suggested a test mailing to about one half of the present contacts initially. The purpose of the test mailing is to gauge the likelihood of feedback and test the survey instrument. Moved by Skahen, seconded by Gohman to mail the updated survey to one half of present contacts. Motion carried 4-0. High Speed Data Line Strack provided an update on two meetings EOA and City staff had with representatives from Astound . Broadband. Astound is requesting the EDA convene a meeting with interested property owners to EDA Minutes - May 21, 2003 Page 2 .~ · discuss the cost of extending plant to industrial areas and gauge the interest of business owners in · securing internet service. Moved by Skahen, seconded by Rieke to direct staff to coordinate and host a meeting with representatives from Astound and the industrial area north of County Road 75 to further discuss the extension of data lines in the area. Correspondence from Rinke-Noonan Law Offices on Behalf of Kremer/Bechtold Family Strack reviewed a memo sent to the attention of City Administrator Weyrens from James Degiovanni regarding the Karen Bechtold property adjacent to CSAH 134 in St. Joseph Township. One of the purposes of the letter was to gauge the St. Joseph EDA's interest in purchasing a portion of the property for a future industrial park. The subject parcel is not contiguous with existing urban growth and lies within the 10-20 year annexation area. Strack indicated the consumption of industrial land is on a pace to hit 20 acres during 2003 leaving only very minimal platted industrial property available within the City. Boardmembers expressed a willingness to consider possible purchase of a portion of the property at some date in the future. The EDA requested the City Administrator respond to the letter. 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. Adjournment Moved by Rieke, seconded by Gohman to adjourn. All present voted in favor of adjournment. The EDA meeting adjourned at 6:00 p.m. · · EDA Minutes - May 21, 2003 Page 3 5· , . www.cityofstjoseph.com ity of St. Joseph DATE: June 11, 2003 25 College Avenue North PO Box 668 MEMO TO: St. Joseph Economic Development Authority <;1. Joseph, MN 56374 ~~st & Cynthiacath-Strack, Municipal Development Group :320) 363·7201 FROM: "ax: (320) 363·0342 RE: Accounts Payable- May, 2003 and Financial Report A.DMINISTRATOR Judy Weyrens Accounts Payable: MAYOR Following are Accounts Payable for the EDA's Consideration: _arry J. Hosch St. Joe Development LLC (MIF Loan) $42,000.00 (funds have been received from ::;OUNCILORS DTED) \lan Rassier MDG Inc. - May $ 1 ,859.55 {oss Rieke :Jary Utsch Total· $43,859.55 Jale Wick Action: A MOTION is in order to approve the Accounts Payable - ~ Financial Report: Attached is the financial report for the EDA. Action: A MOTION to approve the financial report is in order. 7: ~. INVOICE MUNICIPAL DEVELOPMENT GROUP, INC. 25562 WILLOW LANE . NEW PRAGUE, MN 56071 City of St. Joseph 952-758-7399 FAX: 952-758-3711 Attn: Judy Weyrens mdg@bevcomm.net City Administrator PO 668 St. Joseph, MN 56374 Invoice Date 5-30-03 I Payment Terms: 30 days I Customer ID #: ST J03ED Project May Economic Development Services See attached detail Amount: $1,500.00 Monthly contract fee-35 hrs $ 6.75 phone, postage, reimb. expenses $ 352.80 Mileage: 980 miles x .36 $1,859.55 Total Remit To: Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 - Dates-EDA ~ May 06, 2003 Meeting. with Industrial Prospect 2.00 hrs. J. Foust May 08, 2003 EDA Office Hours 8.00 hrs. C. Strack May 09, 2003 EDA Minutes April 28 and May 8 1.00 hrs. C. Strack May 12, 2003 Special EDA & follow-up Maint. Fac. 1.75 hrs. C. Strack I May 13, 2003 EDA Minutes -May 12 1.25 hrs. C, Strack May 14, 2003 EDA Office Hours 9.50 hrs. J. Foust May 15, 2003 Business Lead follow-up 0.50 hrs. J. Foust May 21, 2003 EDA Office hours 8.5 hrs. C. Strack May 22,2003 EDA Minutes May 21, revise survey 2.00 hrs. C. Strack May 28, 2003 EDA Office Hours 7.00 hrs. J. Foust Total May, 2003 41.5 hrs - Invoice for 35 hours Banked Hours: 29.0 hours as of April 30. + 6.50 in May= 35.50 banked hours. Thank you! We appreciated the opportunity to work with you! ~~~ Principal I Check No. I Date: 8 St. Joe Development LLC. MIF Loan TOTALS ----------- --------- --------------- -------- ------- ----------- --------- --------------- -------- ------- PMT Known TOTAL PAYMENTS /;'/1';';'/;'//////// . _terest Rate 4.00% TOTAL INTEREST $ 4,409.64 erm- Years 5 # PeriodslYr 12 Payments due the 10th of each month, with the first payment Present Value: $ 42,000.00 due by July 10, 2003. -------------- ----------- ------------------------- Periods 60 PMT Unknown 773.49 PV Unknown 0.00 Term Principal Principal Interest Total Principal Interest Date Month Outstanding Payment Payment Payment To Date To Date Pymt Due ------------------------ -------------------- ------------------ ------------------------------- ----------------- ---------------- 42000.00 1 41366.51 633.49 140.00 773.49 633.49 140.00 7/10/2003 2 40730.90 635.61 137.89 773.49 1269.10 277.89 8/10/2003 3 40093.18 637.72 135.77 773.49 1906.82 413.66 9/10/2003 4 39453,33 639.85 133.64 773.49 2546.67 547.30 10/10/2003 5 38811.34 641.98 131.51 773.49 3188.66 678.81 11/10/2003 6 38167.22 644.12 129.37 773.49 3832.78 808.18 12/10/2003 7 37520.95 646.27 127.22 773.49 4479.05 935.41 1/10/2004 . 8 36872.53 648.42 125.07 773.49 5127.47 1060.48 2/10/2004 9 36221 .94 650.59 122.91 773.49 5778.06 1183.39 3/10/2004 10 35569.19 652.75 120.74 - 773.49 6430.81 1304.13 4/10/2004 11 34914.26 654.93 118.56 773.49 7085.74 1422.69 5/10/2004 12 34257.14 657.11 116.38 773.49 7742.86 1539.07 6/10/2004 13 33597.84 659.30 114.19 773.49 8402.16 1653.26 7/10/2004 14 32936.34 661.50 111.99 773.49 9063.66 1765.25 8/10/2004 15 32272.63 663.71 109.79 773.49 9727.37 1875.04 9/10/2004 16 31606.71 665.92 107.58 773.49 10393.29 1982.62 10/10/2004 17 30938.58 668.14 105.36 773.49 11061.42 2087.97 11/10/2004 18 30268.21 670.37 103.13 773.49 11731 .79 2191.10 12/10/2004 19 29595.61 672.60 100.89 773.49 12404.39 2292.00 1/10/2005 20 28920.77 674.84 98.65 773.49 13079.23 2390.65 2/10/2005 21 28243.68 677.09 96.40 773.49 13756.32 2487.05 3/10/2005 22 27564.33 679.35 94.15 773.49 14435.67 2581 .20 4/10/2005 23 26882.72 681.61 91.88 773.49 15117.28 2673.08 5/10/2005 24 26198.83 683.88 89.61 773.49 1 5801 .17 2762.69 6/10/2005 25 25512.67 686.16 87.33 773.49 16487.33 2850.02 7/10/2005 26 24824.22 688.45 85.04 773.49 17175.78 2935.06 8/10/2005 27 24133.47 690.75 82.75 773.49 17866.53 3017.81 9/10/2005 28 23440.42 693.05 80.44 773.49 18559.58 3098.25 10/10/2005 (. 29 22745.06 695.36 78.13 773.49 19254.94 3176.39 11/10/2005 30 22047.38 697.68 75.82 773.49 19952.62 3252.20 12/10/2005 31 21347.38 700.00 73.49 773.49 20652.62 3325.69 1/10/2006 <1 St. Joe Development LLC. MIF Loan TOTALS ----------- --------- --------------- -------- ------- ----------- --------- --------------- -------- ------- PMT Known TOTAL PAYMENTS Ni!:::!::::::!! 'nterest Rate 4.00% TOTAL INTEREST $ 4,409.64 . Term-Years 5 # PeriodslYr 12 Payments due the 10th of each month, with the first payment Present Value: $ 42,000.00 due by July 10,2003. -------------- ----------- -------------- ----------- Periods 60 PMT Unknown 773.49 PV Unknown 0.00 Term Principal Principal Interest Total Principal Interest Date Month Outstanding Payment Payment Payment To Date To Date Pymt Due 32 20645.05 702.34 71,16 773.49 21354.95 3396.85 2/10/2006 33 19940.37 704,68 68.82 773.49 22059.63 3465.67 3/10/2006 34 19233.34 707.03 66.47 773.49 22766.66 3532.14 4/10/2006 35 18523.96 709.38 64.11 773.49 23476.04 3596.25 5/10/2006 36 17812.21 711.75 61.75 773.49 24187.79 3657.99 6/10/2006 37 17098.09 714.12 59.37 773.49 24901.91 3717.37 7/10/2006 38 16381.59 716.50 56.99 773.49 25618.41 3774.36 8/10/2006 39 15662.70 718.89 54.61 773.49 26337.30 3828.97 9/10/2006 40 14941.42 721.28 52.21 773.49 27058.58 3881.18 10/10/2006 41 14217.73 723,69 49.80 773.49 27782.27 3930.98 11/10/2006. 42 13491.63 . 726.10 47.39 773.49 28508.37 3978.37 12/10/2006 43 12763.11 _ 728.52 44.97 773.49 29236.89 4023.34 1/10/2007 44 12032.16 730.95 42.54 773.49 29967.84 4065.89 2/10/2007 45 11298.77 733.39 40.11 773.49 30701.23 4106.00 3/10/2007 46 10562.94 735.83 37.66 773.49 31437.06 4143.66 4/10/2007 47 9824.65 738.28 35.21 773.49 32175.35 4178.87 5/10/2007 48 9083.91 740.75 32.75 773.49 32916.09 4211.62 6/10/2007 49 8340.69 743.21 30.28 773.49 33659.31 4241 .90 7/10/2007 50 7595.00 745.69 27.80 773.49 34405.00 4269.70 8/10/2007 51 6846.83 748.18 25.32 773.49 35153.17 4295.02 9/10/2007 52 6096.15 750.67 22.82 773.49 35903.85 4317.84 10/10/2007 53 5342.98 753.17 20.32 773.49 36657.02 4338.16 11/10/2007 54 4587.30 755.68 17.81 773.49 37412.70 4355.97 12/10/2007 55 3829.09 758.20 15.29 773.49 38170.91 4371.26 1/10/2008 56 3068.36 760.73 12.76 773.49 38931.64 4384.02 2/10/2008 57 2305.10 763.27 10.23 773.49 39694.90 4394.25 3/10/2008 58 1539.29 765.81 7.68 773.49 40460.71 4401.93 4/10/2008 59 770.92 768.36 5.13 773.49 41229.08 4407.07 5/10/2008 60 0.00 770.92 2.57 773.49 42000.00 4409.64 6/10/2008 $ 42,000.00 $4,409.64 . 10 CITY OF ST. JOSEPH 06/11/03 10:22 AM Page 1 EDA Revenues · Current Period: June 2003 YTD % SOURCE SOURCE Descr Rev Revenue Balance of Budget FUND 150 Economic Development 31010 Current Ad Valorem Taxes $29,280.00 $0.00 $29,280.00 0.00% 31050 Tax Increment $0.00 $0.00 $0.00 0.00% 34150 TIF/MIF DEPOSIT $0.00 $0.00 $0.00 0.00% 34151 lOB DEPOSIT $0.00 $0.00 $0.00 0.00% 36210 ~r~~:~~r;~;~~g~ther FundNw,mN'Nm~~:~~..~~Œ?~~~~:~b. -$105.95 0.00% 39201 -$25,000.00 0.00% .._-....·..····ww.y...·,·" ......---........ FUND 150 Economic Development $29,280.00 $25,105.95 $4,174.05 85.74% FUND 155 TIF 1·3 Borgert (SKN) 31050 Tax Increment $0.00 $0.00 $0.00 0.00% 39201 Transfers from Other Fund $0.00 $0.00 $0.00 0.00% FUND 155 TIF 1-3 Borgert (SKN) $0.00 $0.00 $0.00 0.00% FUND 156 TIF 1-4 S1. Joe Development 31050 Tax Increment $0.00 $0.00 $0.00 0.00% 34150 TIF/MIF DEPOSIT $0.00 $0,00 $0.00 0.00% 34151 IDB DEPOSIT $0.00 $0.00 $0.00 0.00% FUND 156 TIF 1-4 S1. Joe Development $0.00 $0.00 $0.00 0.00% $29,280.00 $25,105.95 $4,174.05 85.74% · · IL CITY OF ST. JOSEPH 06/11/03 10:23 AW Page 1 EDA Expenditures Current Period: June 2003 · YTD % OBJ OBJ Descr Budget Exp Expense Balance of Budget FUND 150 Economic Development DEPART 46500 Economic Development Authority 103 Legislative Bodies $700.00 $0.00 $700.00 0.00% 151 Worker's Compo Insur. Prem $100.00 $70.00 $30.00 70.00% 200 Office Supplies $500.00 $0.00 $500.00 0.00% 300 Professional Services $21,600.00 $9,491.07 $12,108.93 43.94% 303 Engineering Fee $2,000.00 $0.00 $2,000.00 0.00% 304 Legal Fees $1,000.00 $0.00 $1,000.00 0.00% 321 Telephone $1,200.00 $365.12 $834.88 30.43% 322 Postage $200.00 $100.00 $100.00 50.00% 327 Tax Increment Certification $0.00 $0.00 SO.OO 0.00% 331 Travel & Conference Expense $500.00 $0.00 $500.00 0.00% 340 Advertising $500.00 $0.00 $500.00 0.00% 433 Dues & Subscriptions SO.OO $0.00 SO.OO 0.00% 582 Computer Software $980.00 $0.00 $980.00 0.00% 587 Special Projects $0.00 ~ $0.00 $0.00 0.00% 700 Misc SO.OO ~ (S25,000.00 ) -$25,000.00 0.00% DEPART 46500 Economic Development Autho $29,280.00 $35,026.19 -S5,746.19 119.62% FUND 150 Economic Development $29,280.00 $35,026.19 -$5,746.19 119.62% FUND 155 TIF 1-3 Borgert (SKN) DEPART 46500 Economic Development Authority 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 600 Debt Service· Principal SO.OO SO.OO SO.OO 0.00% · 611 Bond Interest $0.00 $0.00 SO.OO 0.00% 620 Agent Fees $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development Autho $0.00 $0.00 $0..00 0.00% FUND 155 TIF 1-3 Borgert (SKN) SO.OO $0.00 SO.OO 0.00% FUND 156 TIF 1-4 St. Joe Development DEPART 46500 Economic Development Authority 300 Professional Services $0.00 $0.00 SO.OO 0.00% 304 Legal Fees $0.00 $285.50 -$285.50 0.00% 327 Tax Increment Certification $0.00 $0.00 SO.OO 0.00% 340 Advertising $0.00 $0.00 $0.00 0.00% 600 Debt Service - Principal $0.00 $0.00 SO.OO 0.00% 611 Bond Interest $0.00 $0.00 SO.OO 0.00% 620 Agent Fees $0.00 $0.00 SO.OO 0.00% DEPART 46500 Economic Development Autho $0.00 $285.50 -$285.50 0.00% FUND 156 TIF 1-4 St. Joe Development $0.00 $285.50 -$285.50 0.00% $29,280.00 $35,311.69 -$6,031.69 120.60% · (2... · www.dtyof.y...ph..om ity of St. Joseph Date: June 4, 2003 25 College Avenue North PO Box 668 Memo To: EDA Board Members ^.Þ 0 St.Joseph,MN56374 ~ ~ (320) 363·7201 Memo From: Jo'ãñ'ñÐrFoust and Cynthia Smith-Strack, Municipal Development Group Fax: (320) 363·0342 RE: High Speed Data Line - Industrial Areas ADMINISTRATOR Judy Weyrens Background MAYOR The EDA continues to work toward its goal of having high-speed data line plant installed in Larry J. Hosch the industrial areas of the City. Following authorization and direction at the May 21, 2003 EDA meeting, MDG has contacted Astound Broadband and several potential business COUNCILORS customers north of CSAH 75. Alan Rassier Ross Rieke On June 4th an informational meeting notice was mailed to 20 businesses and an Astound G Utsch Broadband representative. The meeting will be held at 9:00 a.m. on June 18th at City Hall. D 7 W' k The purpose of the meeting is to discuss the feasibility and potential cost of extending cable a e IC to additional business area in St. Joseph. The meeting notice and a copy of those receiving the mailing are attached for your information. · EDA Board Members are welcomed to attend the event. Staff will provide the EDA with an update from the meeting at the tegular EDA meeting. EDA Action: No action is required, unless the EDA wishes to direct additional actions. · 13 lvII. Ralph Feld Essilor Thin FilmslMCO Mr. Gary Schroeder DBL Labs Attn. Accounting Manager Game Time P.O. Box 280 P.O. Box 222 931 Woodland Circle St. Joseph, MN 56374 St. Joseph, MN 56374 Long Prairie, MN 56374 . Kittridge Specialized Ann Hensel Gary Hawkins SKN Properties Spring Green 40124 Wallaby Road P,O. Box 39 1111 Elm Street East Rice, MN 56367 S1. Joseph, MN 56374 P.O. Box 1704 S1. Cloud, MN 56302 Mr. Mike Gohman Shannon Zirbes Metro Plumbing & Heating W Gohman Construction VicWest Steel Peg Zimmer 544 8th Avenue NE 600 15th Ave NE 545 8th Ave. NE P.O. Box 57 S1. Joseph, MN 56374 St. Joseph, MN 56374 St. Joseph, MN 56374 Knight Builders Dave Mehr Jeff Ramler 701 Little Crow Court BTL Properties Safe Shred P.O. Box 609 2l913thAveSE 1117 3 St N St. Joseph, MN 56374 S1. Joseph, MN 56374 Sartell, MN 56377 Mr. Tim Ross St. Joseph Vet Clinic Brian Kalla Northwest Truck Accessories St. Cloud Accoustic P.O. Box 1925 809 County Road 75 East 83319thAveNE St. Cloud, MN 56302 St. Joseph, MN 56374 St. Joseph, MN 56374 Central Canvas Manufacturing Randy & Debbie Kaeter Lange Excavating . 636 19th Ave NE 637 19th Ave NE 717 19th Ave NE St. Joseph, MN 56374 St. Joseph, MN 56374 St. Joseph, MN 56374 D & D Welding Sundance Unlimited Dorian Davidson DM Building Corp 718 19th Ave NE 702 19th Ave NE P.O. Box 797 St. Joseph, MN 56374 St. Joseph MN 56374 St. Joseph, MN 56374 Cress Gackle Astound Broadband 400 Sundial Drive Waite Park, MN 56387 . ILt Announces An Informational Meeting with Astound Regarding High Speed Internet IS YOUR INTERNET SERVICE TOO SLOW FOR YOUR BUSINESS . NEEDS? Who: Businesses north of County Road 75 who currently do not have high speed internet service available. What: An informational meeting with representatives from Astound, to discuss the feasibility and potential cost of extending cable to additional business areas in St. Joseph. When: Wednesday, June 25, 2003 at 9 a.m. in the City Hall Council Chambers, 25 College Avenue North, St. Joseph, MN. If you are unable to attend but are interested in this service or more information, please contact Joanne Foust or Cynthia . Smith-Strack at the EDA office at: 320-363-7201 (Wednesdays) or 952-758-7399 or mdg@bevcomm.net. ,5 · www.cityofstjoseph.com ity of St. Joseph 25 College Avenue North PO Box 668 Sf. Joseph, MN 56374 DATE: June 11, 2003 (320) 363·720 I Fax: (320) 363·0342 MEMO TO: St. Joseph Economic Development Authority ADMINISTRATOR FROM: JO~;ust & Cynthi~ith-Strack, Municipal Development Group Judy Weyrens RE: Business Questionnaire MAYOR Larry J. Hosch Background: COUNCILORS On May 28, 2003 a copy of the Development Survey/Business Questionnaire was mailed to Alan Rassier eighteen (18) business contacts that had been or are still in contact with the EDA regarding Ross Rieke expanding in St. Joseph. Gary Utsch A copy of the survey mailed, the and the initial mailing list are attached for your information. A Dale Wick total of four responses have been received as of June 11th. A summary of responses received from the questionnaire is attached. · An additional 35 former and present contacts have been identified for surveying. Action: No action is required, unless the EDA desires to have questionnaires mailed to additional business contacts. · 17 City of St. Joseph . 'Development Questionnatre In the interest of serving our business community and potential commercial/industrial businesses to the best of our ability, we are requesting input from you on the services and activities of the St. Joseph Economic Development Authority and its consultants, the Planning Commission and the City Council. As a business representative who has worked or is working on a project in our community, we value your input and ideas! Your completion of the following questionnaire is greatly appreciated! It may be returned in the enclosed self- addressed stamped envelope to: City of St. Joseph EDA, PO box 668, St. Joseph, MN 56374. 1. Who was (is) your first contact at the City of St. Joseph? Name # of Responses Mayor Hosch 1 Chad Carlson 1 A Gal from the City 1 Judy Weyrens 1 2. On a scale of 1 to 5, with 1 = poor and 5= excellent, how would you rank your initial meeting and impression of the City of St.Joseph? Rank # of Responses 1 2 3 4 2 . 5 2 Comments: · City looks alive and fresh with maintained business and residential housing · Very helpful and knowledgeable · Did a good job, except I felt he had his favorites who he did more for 3. If you met (are meeting) with EDA consultants (Joanne or Cynthia of Municipal Development Group, Inc.) how would you rank the following: a. Knowledge Rank: 1 2 3 4 5 # of Responses 1 2 b. Ability to provide you with information needed Rank: 1 2 3 4 5 # of Responses 1 2 c. Follow-up/ Responsiveness Rank: 1 2 3 4 5 # of Responses 3 Comments: · They are outstanding, the best I've worked with · . 1 Iß .. If you met (are meeting) with the Economic Development Authority (EDA) how would you rank: a. Willingness of the EDA Board to foster development Rank: 1 2 3 4 5 # of Responses 2 b. The overall experience? Rank: 1 2 3 4 5 # of Responses 2 Comments: 5. If you met (are meeting) with City staff members how would you rank: a. Their knowledge Rank: 1 2 3 4 5 # of Responses 2 2 b. Willingness to assist and explain information Rank: 1 2 3 4 5 # of Responses 1 3 . c. The overall experience? Rank: 1 2 3 4 5 # of Responses 1 1 2 Comments: . Excellent . Most of the meetings with City personnel have been good, however; dealing with the City Engineer has proven to be extremely frustrating. 6. If you met (are meeting) with the Planning Commission how would you rank: a. The Commission's explanation of why they voted as they did: Rank: 1 2 3 4 5 # of Responses 1 b. The Commission's approach to you as a business/developer: Rank: 1 2 3 4 5 # of Responses 1 c. The overall experience? Rank: 1 2 3 4 5 # of Responses 1 . Comments: The only person on the Planning Commission that seems to understand the difficulty of developing in Sf. Joseph is Mike Deutz. 2 (1 7, If you met (are meeting) with the City Council how would you rank: a. The Council's explanation of why they voted as they did: . Rank: 1 2 3 4 5 # of Responses 1 b. The Council's approach to you as a business/developer: Rank: 1 2 3 4 5 # of Responses 1 c. The overall experience? Rank: 1 2 3 4 5 # of Responses 1 Comments: 8. If you decided to locate/expand in St. Joseph, what was (is) your primary reason for selecting St. Joseph as a location for your business? · I feel that we could fill a niche in St. Joseph and be profitable as well. · Location and opportunities. · 9. If you decided not to locate or expand your business in St. Joseph, what was your primary reason for t_ decision? ' · Rents are higher than we can afford! Our margins don't allow us to pay $10 - $ 15 a square foot. If there was a lower rent or lower purchase price to buy we would. · Rent was too high. · Lack of economic assistance and significant red tape. · 10. Other comments or suggestions: · If we could find a 5,000 sJ building or more for a three percent rent factor we would love to join the rest of you in St. Joseph. · I feel it is a conflict of interest for the President of the EDA to be a person who owns many places in town and the City gives in to anything he wants or does. Example: the rental units in the swamp, should have had to take them down and not just get a fine. · Cynthia and Joanne from MDG are two of the primary reasons why St. Joseph's future is very bright. · The City professes to be pro-business, but they attempt to derail and roadblock as much as possible, including City Engineer. . 3 zD · www.cityofstjoseph.com ity of St. Joseph Date: June 11,2003 25 College Avenue North Memo To: EDA Board Members PO Box 668 J~st and Cynthi~th-Strack, Municipal Development Group St. Joseph. MN 56374 Memo From: (320) 363·7201 Fax: (320) 363·0342 RE: Change Order - Maintenance Facility ADMINISTRATOR Judy Weyrens Background/Request: The exterior of the Maintenance Facility was designed with waynes coating proposed on the MAYOR front of the building. After review, the City Administrator inquired as to the cost to include Larry J. Hosch waynes coating on the two sides as well. Enclosed is a quote for $ 65.00 and the Change Order #5 form. COUNCILORS For the low cost, it is requested the EDA approve the change order. Alan Rassier Ross Rieke Gary Utsch Financial Impact: Dale Wick $ 65.00 · EDA Action: A MOTION is in order to approve Change Order #5 for $ 65.00 to include waynes coating on two additional sides of the Maintenance Facility. · zj -- --~ -= ~- ,-------------~---- - -'-.- 4.0hí~bee. June 5, 2003 Outsource Management Services 841 2nd Avenue South Waite Park, MN 56387 Attn: Dean Wick Re: Change Order Request #9 (C.O.R. #9) Maintenance Building St. Joseph, MN Dear Dean: Please see our cost to furnish fourteen (14) transition strips-for use at the East and West ends of the building for wainscot color change at both areas. . Material Cost: Add: $58.00 SBI 10% OH&P: - 6.00 SBI 2% Bond: 1.00 Total: Add: $65.00 Please review the above cost with the owner and advise our office as to your decision as soon as possible. If accepted, please sign and return this proposal to our office, so that we may proceed. JB/ja ilhj~ Cor9 - 060503 {¿;-Cj - 0 5 Owner's Acceptance Date &hingobee Builders, Inc . 164'2 75th Avenue 8. 669 N. Medine. 8lreel, P.O. Box 8 8L Cloud. MN 56301-4561 Lorello. MN 55357-0008 Bus: (3'20) '20'2-1300 f8...'-: (3'20) '20'2-919'2 Bus: (763) 479·1300 fax: (763) 479-3267 General Contractor ~ Construction Mana8ement :~ Desiðn/Build :~ Qeal Estate øervice 22- _ 1. ~. ~ _ f CHANGE ORDER Distribution to: DOCUMENT G701 c OWNER x OUTSOURCE x . If this sentence is in RED, this is an original CONTRACTOR x document. FIELD OTHER PROJECT: CHANGE ORDER NUMBER: 5 New Maintenance Building City of St. Joseph INITIATION DATE: 6/11/2003 St. Joseph, Minnesota TO: OMS PROJECT #: 2001027 Shingobee Builders, Inc. CONTRACT FOR: General Construction 1642 75th Avenue South S1. Cloud, MN 56301 CONTRACT DATE: October 16, 2002 As per Change Order Request #9- Add Wainscot transition strips to West and East wall. . Not valid until signed by both the owner and Outsource Management services. Sianature of the Contractor indicates his agreement herewith. including anv adjustments in the Contract Sum or Contract Time, The Original (Guaranteed Max.) (Contract Sum) was ....................................................... $ 381,750.00 Net change by previously authorized Change Orders ......... ...... ........... ...... ............ ........... $ 99,320.00 The (-Gl:lrsAteed Max.) (Contract Sum) prior to this Change Order was............... _..... ............ $ 481,070.00 The (Gl.laFaRteeEl Max.) (Contract Sum) will be (increased) (ElesreaseEl) (ImcAangeå) by this Change Order.... $ 65.00 The new (GuaraAteed Max.) (Contract Sum) including this Change Order will be...... .............. $ 481,135.00 The Contract Time will be (increased) (-decre3sed) (unchanged) by 0 Days The date of Substantial Completion as of the date of this Change Order therefore is... ...... ...... 116 days Authorized: . OUTSOURCE MGMT SERVICES Shingobee Builders, Inc. City of S1. Joseph Design Team Coordinator CONTRACTOR OWNER 841 2ND AVE S. 1642 75th Ave. S. P.O. Box 668 Address Address Address :;r¡:;¡N 56387 S1. Cloud, MN 56301 St. Joseph, MN 56374 By By DATE "-tl-O? DATE - DATE . 2.3 . ity of St. Joseph · www.cityofstjoseph.com DATE: June 11, 2003 MEMOTO: Economic Development Authority 25 College AvelfDRM ~ cfl Joan e oust & Cynthia Smith-Strack, Municipal Development Group PO Box 668 St. Joseph, MNPm?4 Economic Development Activity Report - May-June, 2003 (320) 363·7201 Fax: (320) 363·0342 Municipal Development Group has been interacting with a number of prospects throughout the past ADMINISTRATOmonth. Following is a summary of activities that have transpired. If you have any questions on any of Judy Weyrens these or other projects, please do not hesitate to contact us at 952-758-7399. MAYOR Business Prospects have been identified by a project number to protect the confidentiality of the Larry J. Hosch businesses. :::OUNC!LORS Project 01-A: . Alan Ras~ier The construction of a 67,000 square foot building is near completion in the St. Joseph Business Park. Ross Rieke The company moved into the facility in March. The City has received the $42,000 from DTED for the Gary Utsch revolving loan fund and will be distributing it to St. Joe Development LLC following the June EDA Dale Wick meeting. Project 01-8: This manufacturing company initially contacted the city regarding an expansion in 2001. MDG and EDA · representatives worked with company contacts in 2001 and 2002. In June, 2002 the company indicated they were no longer planning to expand, but may be in a year. MDG followed-up via e-mail on June, 11, 2003 regarding status of expansion plans. The contact noted they are still in a "holding pattern". Project 01-E: This project involves a service business currently located in the community. The business has been in contact since December, 2000 regarding a future expansion. MDG followed up on May 28, 2003. The business has expressed an interest in a commercial development building/site proposed by Project 03-A. Project 01-F: This project involves the locating of a fast food restaurant in the City of St. Joseph. The company is still reviewing various commercial sites in the city. MDG's followed up on May 14th and June 11,2003. Project 01-1: This company has been considering the purchase of a lot in Buettner Business Park since the fall of 2001. MDG sent the business a copy of the proposed re-plat of the Business Park on June 11, 2003. Project 01-J: This developer owns a commercial subdivision in St. Joseph and is constructing a commercial building. MDG has been working with the developer and has forwarded potential business leads including 03-1 who is looking for 5,000 sq. ft. The developer currently has 2,400 sq. feet leased and 7,360 sq. feet available. MDG provided information regarding the development to the St. Cloud Times on May 27, 2003. The last contact with the developer was made on June 11,2003. Project 01-N: This commercial business is considering the construction of a 3,000 square foot office facility in St. Joseph. The company is looking at other commercial lot options in the city and other communities. MDG · had follow-up conversations with the business representative on May 20th, 21 st and 28th. EDA Business Prospect Report - May-June, 2003 Municipal Development Group - Page 1 25 Project 01-0: This manufacturing company initially contacted the city in December, 2001. Their proposed project has . been on hold while they conduct further market research and find investors. MDG's last contact with the company was on May 28, 2003. Project 02-C: This business contacted the city in January, 2002 regarding an industrial expansion in the area. MDG has been working with the company to locate a site. The business is finalizing financing. The last contact was made on June 11, 2003. Project 02-E: This company contacted the City in February 2002 regarding commercial sites ~ to 1 acre in size for a 5,000 square foot commercial enterprise. He has indicated his project is on hold due to the economy. MDG's last conversation with the company was on May 28, 2003, Project 02·H: This highway commercial building was annexed into the city in 2002. The developer has been working with potential tenants. MDG met with a company regarding a recreational, commercial enterprise on May 14, 2003 and provided them with information relating to a conditional use permit and related zoning regulations. MDG followed up with the business and the property owner on May 28, 2003. Project 02-L: This company plans to construct a 16,000 square foot multi-tenant building in St. Joseph business park, with plans for an additional 16,000 square feet. The EDA reviewed/approved the building and site plan at their March 19th meeting. The Planning Commission conditionally approved the site plan on June 2, 2003 (contingent on storm water approval by City Engineer). The City Council will review plans on June 19, 2003. Project 02·P: . This business expressed a need to expand in May, 2003, MDG has been working with the company over the past year and has provided information on available commercial sites. The company has some immediate space needs and long-term (2 ~ year) plans for a larger space. -They are also looking at the City of Avon. The most recent follow-up occurred on June 11, 2003. The contact indicated they plan to retain their business in St. Joseph for the next 2 years, but found additional lease space in Avon. Project 02-R: This business has been working with MDG since June, 2002 to identify sites for a 7,000 square foot building. The company has been finalizing their business plan and financing. MDG's last contact with the company was on June 3, 2003. Project 02·Y: This prospect contacted MDG on October 7, 2002 regarding new construction in the Buettner Business Park. MDG has had numerous follow-up conversations with the company and supplied information requested on other sites. MDG's most recent follow-up occurred on May 28, 2003. Project 02-AA This prospect closed on a lot in the business park in early February, 2003. MDG contacted the Developer regarding anticipated construction on May 28, 2003. Spring 2004 construction is anticipated. Project 02-CC This prospect contacted MDG on November 22, 2002 regarding available acreage within the Buettner Business Park for a 9,200 square foot facility, MDG followed-up most recently on June 11, 2003. The business owner noted they are not ready to proceed with their expansion plans at this time and requested a follow-up call in a month. . EDA Business Prospect Report - May-June, 2003 Municipal Development Group - Page 2 2Jo , message most recently on May 28, 2003. The business is still interested in an industrial lot in Buettner · Business Park. Project 03-A These developers are interested in a large highway commercial development in an area not yet annexed into the City. MDG has been working with them over the past several months. Follow-up correspondence most recently occurred on May 21st, June 1st, June 4th and June 11th. The developers are still finalizing a land transaction and will proceed once that is complete. Project 03-D St. Cloud Area economic development partnership forwarded this lead to cities in the area on January 10, 2003. MDG has had several follow-up conversations and meetings with the company and provided information on land, buildings and financing programs. Most recent follow-up correspondence occurred on May 15th, 16th, 21st and 28th and June 11, 2003. On June 11th the company contact reported that they decided to locate in St. Cloud. He noted both cities were great to work with and offered similar financial programs. The decision was based on investor's desire to be located in a larger city. The business is currently in Salt Lake City, UT. Project 03-E This prospect met with MDG on February 19, 2003. They inquired about land in Buettner Business Park. MDG provided the prospect with site information, assessment and covenants. MDG followed up on June 11, 2003. The business owner indicated that the covenants for Buettner Business Park relating to outdoor storage and landscaping are too restrictive for their needs. If other industrial parcels without these restrictions become available he is interested in additional information. Project 03-G This company requested information on Buettner Business Park lots, prices and covenants in February · 2003. MDG has followed up with the company on three occasions since, with the most recent contact on June 11, 2003. Project 03-H This company is interested in 4.0 acres of industrial land in Buettner Business Park. Requests to replat Lot 2, Block 1 and receive approval of a site plan, building plan and landscape plan were approved by the EDA on May 21st. MDG has been working with a realtor and the company on this project with contacts most recently on May 14th, 21st and 28th. The Planning Commission reviewed and approved the site plan on June 2nd. The Council will review the plans on June 18, 2003. Project 03-1 This company is interested in 5,000 square feet of existing retail space - to lease. They initially contacted the City on April 21st, 2003. MDG has forwarded the company information on three potential buildings. Follow-up occurred on May 14th and June 11th. The company representative noted that rent prices are too high for required lease terms, and that it would be too risky at this time. They requested a follow-up in a few months. Project 03-J This company inquired about the former Vicwest Building. MDG attended a meeting with a company representative and a realtor for the building on April 30th. Follow-up by MDG occurred most recently with the company on May 28th and the realtor for the building on June 11, 2003. A decision is anticipated by July 1, 2003. Project 03-K This contact requested information from MDG on starting a business and zoning regulations in the Central Business District, on May 2nd. MDG sent the contact a book from DTED "A Guide to starting a business in MN" along with an excerpt from the zoning ordinance. MDG followed up most recently on · June, 11, 2003. EDA Business Prospect Report - May-June, 2003 Municipal Development Group - Page 3 27 Project 03·L This business contacted the City on May 12'h and requested information on prIcing and lot sizes in . Buettner Business Park. The contact indicated they would have some outdoor storage and a 5,000 square foot building. MDG mailed the company information on Buettner Business Park including a map and the covenants as well as information on the multi-tenant building proposed for construction within the business park. MDG followed up on May 28th, Project 03·M MDG met with two business people interested in leasing the former Tom Thumb building for a recreational use, on May 14th. Zoning Ordinance excerpts relating to the highway commercial district and application forms for a special use permit were provided. MDG followed up on May 21st and 28th. The company is finalizing financing, and reviewing various site options. They may proceed with a request for a special use permit in July, if they determine this is an appropriate site. Project 03·N A contractor contacted MDG on May 15, 2003 regarding the availability of industrial sites in Buettner Business Park for a 10,000 square foot building. On May 21 st the company contacted MDG re: permitted and conditional uses in the Business Park. Follow-up correspondence also occurred on May 22nd, 2ih, 28th, June 2nd, 6th, and June 11th. The company has requested confidentiality until they are ready to proceed, which is estimated to be in July, 2003. Other: MDG has been working on the required information for the Municipal Maintenance Facility. MDG met with representatives from Astound on the installation of high-speed data lines in the industrial portions of the City. The EDA will be coordinating a meeting with business representatives and Astound representatives on June 25, 2003. The Development Survey was sent to 18 business leads on May 28, 2003. The EDA requested the . surveys be sent to a sample group prior to the mailing to all prospects to determine if any changes should be made to the survey. The St. Cloud Times contacted MDG on May 2ih regarding commercial and industrial development occurring in St. Joseph. . EDA Business Prospect Report - May-June, 2003 Municipal Development Group - Page 4 zB ! ity of St. Joseph · www.cityofstjoseph.com Date: June 11, 2003 25 College Avenue North Memo To: EDA Board Members POBox 668 JO~ust and Cynt~mith-Strack, Municipal Development Group Sf. Joseph, MN 56374 Memo From: (320) 363·7201 Fax: (320) 363-0342 RE: Marketing Agreement- Buettner Business Park ADMINISTRATOR Judy Weyrens Background: On September 27, 1999, the EDA entered into an "Agreement for Initial Marketing and Sale" MAYOR with Leo Buettner for the industrial lots in Buettner Business Park. Enclosed is a copy of the Larry J. Hosch agreement. ::OUNCILORS Term of Agreement: Alan Rassier The term of the agreement is outlined as follows: Ross Rieke First Term (24 months) Sept. 1999 to Sept. 2001 Gary Utsch Second Term (12 months) Sept. 2001 to Sept. 2002 Dale Wick Third Term (12 months) Sept. 2002 to Sept. 2003 . Third term only begins if 10 acres have been sold in the business park. Termination of the agreement occurs if no buyer constructs a building within 36 months of the date of agreement. The termination, or extension of the agreement, must be in writing by · the EDA and Owner. During the second term, 2.610 acres were sold to Spring Green and 8.0 acres were sold to St. Joe Development LLC, for a total of 10.610 acres. During the third term, 6.0 acres have been sold, with a sale pending on an additional 4.0 acres. Pricing Exhibit B including a Pricing Schedule for the lots. The pricing is as follows: Frst Term (24 months) $16,000 per acre Second Term (12 months) $17,000 per acre Third Term (12 months) $17,000 per acre *In addition assessments and commissions are allowed to be charged to the purchaser. Assessments are approximately $18,700 per acre. This does not apply to highway commercial lots. Request: Mr. Buettner, his realtor - Jerry Hettwer, MDG (Foust) and City Administrator Weyrens met on June 11, 2003. Mr. Buettner and Mr. Hettwer indicated that due to carrying costs, surveying and replatting costs, a price increase is needed. A formal request was not available at the time of packet preparation. They have requested the ability to present a formal price increase request to the EDA at the June 18, 2003 meeting. EDA Action: The EDA will be asked to consider an amendment to Exhibit B of the "Agreement for Initial · Marketing and Sale". A MOTION to approve or deny the request is in order. z.cr . , . Agreement for Initial Marketing · and Sale THIS AGREEMENT is made and entered into as of the 2-rn day of September, 1999, by and between Leo and Gloria Buettner ("Owner") and the ~conomic Development Authority of St. Joseph, Minnesota, a public body corporate and public under the laws of the State of Minnesota rEDA"). WHEREAS, Owner is the fee owner of the property located in Steams County, Minnesota as described in Exhibit A attached hereto Blocks 1,2, and 5 of the Buettner Business Park (the "Property"). WHEREAS, Owner desires that the EDA have exclusive authority to market and sell or lease the Property, or portion thereof, to third parties according to the terms herein. NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, it is hereby agreed by and between the parties as follows: i. Representations by Owner. Owner represents and warrants to the EDA as to the following: a. There are no parties or other entities in possession of the Property or who hord any right, tITre or interest in the property except the owner, excfudíng any mortgagee; b. To the best of the Seller's knowledge, the Property has not been used for generating, transporting, storing, treating, or disposing of hazardous substances · (as that term is defined in 42 U.S.C. Sections 6903, 6921 ,or in Minnesota Statues Section 115B.02); the Property has not been used for disposal of waste or hazardous substances; and no underground storage tanks, wells, or septic systems are presently or have been located on the Property; and c. Conveyance of the Property by Owner does not violate any agreement, ordinance or law to which Owner or the Property is subject. 2. Recresentations by EDA. The EDA represents and warrants to the Owner as to the following: a. The execution, delivery and performance of this Agreement by the EDA does not and consummation of the transactions contemplated hereby and the fulfillment or the terms hereof will not, conflict with any legislative act, constitution, or other proceeding establishing or relating to the establishment of the EDA or its officers or its resolutions. b. The EDA, in its sole discretion, will consider the use all reasonable procedures within its power, including but not Hmited to, tax increment financing, tax abatement, and low interest loan programs, to attract buyers to the Property and to market the Property to such buyers. · 30 : '3. -owners Obliaations. · a. Owner hereby agrees to furnish to the EDA a commitment ("Title Commitment") for an.ALTA Form B 1970 Owner's Policy for Title Insurance insuring title to the Property or the· Owner wi/i províde the EDA wíth a ¡fffe Opiníon prepared and signed by anattomey licensed in the State of Minnesota, and directed to the EDA, verifying the State of Title to the Property. 'b. Owner shall promptly furnish the EDA with complete information concerning any persons who during the,period of this Agreement makes inquires to Owner regarding the sale, exchange of the Property and shalf refer such persons to the EDA and shall in all other ways cooperate with the EDA in the marketing and sale of the Property. c. Owner shall permit the EDA to erect and maintain signs upon the Property, which indfcate tnattfie Property is for sale. d. Owner hereby agrees to furnish to the EDA a boundary survey and a Final Plat of the Property. e. Owner shall make available to the EDA any soil tests on the Property in Owner's .possession and allow others reasonable access to.perform inspection and testing of the Property. Owner shall not be responsible for the cost of any additional soil testing requested or required by any prospective purchaser of the Property. f. Owner agrees to selt the Property to the EDA or any other buyer found by the EDA according to the general terms of the purchase agreement attached hereto as Exhibit C (the "Purchase Agreement"). Any changes in the general terms of the Purchase Agreernentmust be approved by the Owner. The purcnase price · of the Property shall be as shown on the price schedule attached hereto as Exhibit B (the "Price Schedule"). Owner may not refuse to enter a Purchase AgrearnentJnthe farm: of ExbibitC and for-the price contained in Exhibit B. Owner agrees to execute the Purchase Agreement wíthín ten (10) days after written request by the EDA. The Owner agrees to thereafter comply with the terms of the Purchase Agreement. g. Owner agrees to assume and paý all closing or transfer costs typicálly assumed by the seller. Any outstanding Specíal Assessment due on the property at the time of sale will be paid or assumed by the buyer. h. The Owner grants a license to the EDA to enter into the Property for ar;1Y and all purposes incidental to the marketing and sale to the Property. Pursuant to this license, the EDA may take prospective buyers onto the Property and permit third parties to enter the Property to perform soil tests, surveys, and other activítíes incidental to the sale and/or development of the Property. 4. EDA..DbJigations. a. The EDA agrees to market the Property and to procure buyers for the Property to the ~. of their ability... b. The EDA hereby agrees, at its sole cost and expense, to develop and distribute rnarketing material including, but not Umited to,pamphlets,signage on site, leaflets, and explanatíons of economícíncentíves regardíng the Property to be used by the EDA to procure buyers for the Property. All material will be provided to the Owner. · 3J c. Six months from the date hereof, and each twelve months thereafter during the term of this Agreement, the EDA shalf provide written report to the Owner regarding the status of the EOA's marketing efforts with respect to the Property. · d. Within thirty (30) business days after receiving the TItle Commitment or Title Opinion, the EDA wilf make written objectioM ("Objections") to the Titre. The Owner will have thirty (30) business days after the receipt of any such Objections to cure the Objections so that the Property is readily saleable to prospective purchasers. e. The EOA shall provide a study, which will analyze the traffic needs of the area in conjunction with the APO. The EDA shalf, In conjunction with the City of $t, Joseph, plan all utilities and streets. The Owner's contribution toward the cost of the utilities and streets servicing the Property win be in accordance with a separate Developer's Agreement entered betvæen the Owner and the City of St. Joseph in conjunction with this Agreement. f. The EOA shall review the ordinances applicable to the Property and determine the most expeditious 'Way to proceed to facllítate the development of the Property. The EOA shall recommend to the City Council of the City of St. Joseph changes to the ordinances, which will facilitate the development of the Property. The EDA wílf further cooperate with the City and other agencies in the development of the Property. h. The EDA shall review and approve all building and development plans with respect to the Property and shall use reasonable efforts to facilitate approval of the plans by the City of St. Joseph, i. The EOA shall also ensure that the plans and specifications of the building plans conform to the Buettner Business Park Protective Covenants, as established by · the EDA and mutually agreed to by the Owner. j, - The EDA shall not be Hable to the Owner for damages because of a breach of a purchase agreement by any prospective purchaser of the Property. 5, Term. a. The EOA shall have the exclusive right to market the Property for twenty-four (24) months for the date of this Agreement (the "First Term"). If at the end of the First Term less then five (5) acres lot has been sold to either the EDA or a third party, either party has the option to terminate this Agreement. If at the end of the First Term, more then fIVe (5) acres has been previously sold, then this Agreement shall be automaticalfy reneVJed for another twelve (12) months (the "Second Term). If at the end of the Second Term a total often (10) acres have been sold, this Agreement shall be automatically renewed for another twelve (12) months. b. The EDA may employ others to assist in the marketing of the property or employ sub-agents. The EDA shalf be responsible for fees and commissions to such sub-agents or employees unless the parties agree otherwise, · 37- . 6. Termination. . This Agreement shall terminate automatically if no buyer has begun construction on "--, ' the Property, including preparation of sails, within thirty-six (36) months of the signing of this Agreement. The parties may agree to continue the Agreement by writing evidencíng such extension signed by both the EDA and the Owner, or terminate the Agreement by writing signed by both the EDA and Owner. 7. Parties' Riahts Upon Termination. Upon termination of this Agreement neither party shalr be Hable for damages hereunder to the other and each party shall be responsible for its own debts and obligations. 8. Additional Provisions. a. Brokers. i. OWner and the EDA represent and warrant that no broker brought about this Agreement. Owner and EDA agree that should any cfaim be made for commissions, finder's fees or similar charges as a result of the acts of the EDA and/or Owner with respect to this Agreement or any Purchase Agreement, the EDA and Owner will indemnify, defend and hold each other free and harmless from any and all liabilities and expenses in connection therewith. ii. If a broker represents the buyer of any part of the Property, the EDA and Owner shall not be responsible for the payment of any portion of the fee of the buyer's broker, unless the Owner specíficaily agrees to assume . the fee, or any portion thereof, by written agreement. In the absence of such an agreement, the fee is the responsíbífíty of the buyer. Any broker fee will be over and above the .purchase price of the property. b. Assionment. Neither party may assign its rights under this Agreement without the prior written consent of the other, not withstanding the above restriction, the Owner may assign the Agreement and convey the property for estate planning purposes to a trust or family limited partnership. c. GoverT1ir1gpbaW~ This Agreement and any other document related hereto shall be interrupted and enforced in accordance with the laws of the State of Minnesota. d. Partnership. Nothing herein shall be construed to create a partnership or joint venture between or among the Owner and the EDA. nor shaff anything herein be construed to create a fiduciary relationship between the parties as to any activity described herein. . 33 e. Indemnification. Each party hereto (the "Indemnitor") shall indemnify and save the other party (the · "Indemnitee"), its agents, officers and employees, harmless from and against all Habílffies, losses, damages, costs, expenses, including, reasonable attomels fees, causes of action, suites, claims, demands, and judgement of any nature, because of bodily injury to, or death of any person and because of damages to property of the Indemnitee or others, Including the loss of use from any cause whatsoever, arising out of, incidental to, or in connections with the use, non-use, ownership, condition, or occupancy of the Property, or with any improvements thereto, due to any acts of omission or commission, Including negHgence of the Indemnitor, or any agreement or their employees or agents; provided, however, that the Indemnitor's obligations shall not extent to any cause of action arising auf of or relating to any act of omission or commission of the Indemnitee, its officers, employees or agents. The Indemnitor's liability hereunder shall not be Hmifed to the extent of insurance carried by or provided by the Indemnitor or subject or any exclusions from coverage in any insurance policy. f. Owner's Retained Prooertv. The Owner's Retained Property (Lot 1, Block2; Lot 1, Block 3; Lot 2, Block 3) shaH not be subject to the terms of this Agreement and the EDA shall have no right to purchase or sell the Owner's Retained Property. The EDA agrees it shall use its best efforts to ensure that Lot 1, Block 3 of the Property will be used in accordance with the City's Zoning Ordinances for commercially zoned property. g. None of Lot 1, Block 5, Lot 1 & Lot 2, Bfock 2 and Lot 1, Slock 2 shaff be used for · commercial use without prior written consent of the Owner. · 3'+ . . IN WfTNEES WHEREOF, Owner and the EDA caused this Agreement to be executed as of the day and year first written above. ~ øll~ú;~~ t 0 Buettner \..J . ~1?~~.. // (!fj} ~~. Gloria Buettner , STATE OF MINNESOTA COUNTY OF STEARNS The foregoing instrument was acknowledged before me this 27th day of September 1999, by Leo and Gloria Buettner, the Owners. 7:';'-. ~ __;'··l"'tn>'-:~·~...mv~ 1r"";5r (/~ d/~'IvüW^S' JUDY ANN WEYRENS NOTARY PUBUG-MINNESOTA My Commission Expires Jan. 31. 2005 tary R blic . ECONOMIC DEVELOPMENT AUTHORITY OF ST. JOSEPH, MINNESOTA BY~ffZ - NAME: Chad A. Carlson TITLE: EDA Executive Director STATE OF MINNESOTA ) ) COUNTY OF STEARNS ) The foregoing instrument ·was acknowledged before me this 27th day of September 1999, by Chad A Carlson, the Executive Director of the Economic Development Authority of the City of Sf. Joseph, Minnesota, a body corporate and politic on behalf of the entity. /1 -.~~~~ ~.u~ ?&Ah Wßyo/!/4f; JUDY ANN WEYRENS . NOTARY PUBU~INNESOTA . My CommissIon ExpIresJan.31.2005 o ry Pu IC ð5 . . EXHiBIT à to Agreement for Initial Marketing and Sale Description of Property Buettner Business Park Land subject to this Agreement is described as follows: Property located north of Elm Street, Sl Joseph, Minnesota and to include: Lot 1, Block 1 Lot 1, Block 2 Lot 1, Block 5 Lot 2, Block 1 Excluded from this Agreement are the following parcels of the Buettner Business Park: Lot 1, Block 4 Lot 1, Block 3 Lot 2, Block 3 . . 30 . . EXHIBIT B to AgreemenUor Initial Marketing, Sale and Development Price Schedufe (From the date of tHis Agreement) The Net Sale Price to be received. by the Owner for all or any portion of the Property excluding the portion of the Property within any dedicated right of way described on the Plat of the Property shall be as follows: 1} During the First T enn (24 months from ,the date of the Agreement) - SOOeen Thousand and. 00/100 Dollars ($16,POO) per acre. 2) During the Second T enn (beginning the third year from the date of the Agreement) - Seventeen Thousand and 00/100 Dollars ($17,000) per acre. 3) During the subsequent twelve (12) month period as provided in paragraph 5.a of this Agreement - Eighteen Thousand and 00/100 Dollars ($1~8,000) per acre. The Net Sales Price described above shall be the minimum amount to be received be the Owner .þ .r-,:;....... for the sale of any portion of the Property, not to include any closing costs, real estate taxes, _ ß;y.:!>t(. f.).LJ .' assessments or commissions customarily due or payable at closing by the buyer. of- . .~ ¡ 1\ QI~ .' ~ ~~w Due to economic and market factors or other reasons. during the First Term and subsequent ~ . Tenns, a price adjustment may be justified and must be mutually agreed to by the EDA and the Owner. . 31 . 1 I I I 2 I I I I I 3 I I 1 I \ 4 I- ILl IS ILl a::: 3.0 ACRES I- G e 1;1 SOLD fu 7 (I) o "':I IS I I r 3.0 ACRES Y 1 ~ g I ~ . ~ I 8.306 ACRES ~ Zoned -4 Industrial 1 _ 2 12 I ; I 13 I r ,n,_.;< 8.0 ACRES I I. '/ / ,. / ' .. . ·1 14- 1/ /\ ~ L '-' §, (.. G.oJ ?;,.,Q ~ 0\ r -, r ~ --/ , 2 . , 1 \ I :ð ?'" 2.610 ACRES 10.0aþ ACRES II ~ ~ 5 Zoned I I I ; (c:?:/ c Indusmal II 2 ~ L ELM ST. E. '---.J _ .-J I .., --, ~ K" lit) II ~ ~ I t211 I 3 I \ ~ ~ ,':æ 1\ 2 I _J L :; ~ 4.978 ACRES I 0 1 1 \1 I - g \\ 4 a::: 5.699 ACRES 7. 836,ACRES _ 0> ~. I >- . . L ., '--ZOned I I -¡¡-_ ~ ~ Zoned I I- Zoned II Industrial I __ o \\ Hwy. Z Hwy. 3 ---- N 3' l. Comm. ..J ð Comm. II - - -- - - C) I . ~~-~- .\ I ~ BURUNCTON ~ ""'""--=--= - ~ ¡;: NORTHERN SÞNTA C'r!' - - - Z - - r¡;, R.R. - ~ ~-~-- - CSAH 75 -..-----. '--c. ~ -----. ~~ ILl __ ~ :Z - _ ~~ o. ~ ~ ILl ~ ~ ::E: I- ~ ~ ST. E. 0 ZOO . ..... õ FILE NO. ST. JOSEPH ..,5I~ STJOE9904.00 BUSINESS PARK EXHIBIT. g'DATE: ST JOSEPH MINNESOTA NO.,?J. 01/22/02 . , .Page 1 ot L ~~Ji~9~i~ia m~~~~i!'i;$~KÎ ~ ~èJ¿¡resSes, ¡) r~.nC~~i.~~,~~~~9~.:1~3!1~~ .z.J ;~~~9~&¥W~,i;t . Subject: Fw: MCCF Loan Committee Meeting Date: Fri, 23 May 2003 16:00:57 -0500 To: "Municipal Development Group, Inc." <mdg@bevcomm.net> From: 0« "Judy Weyrens" <jweyrens@cityofstjoseph.com> :~~t~~i¡~~~m~iª~~Iªg11ìilì§Ðmt(~1~~~1 msg-15018-1.dat (3k) [text/plain) ,;~g~mì~i' ~~~1;~~M¥l~î]1~1. tt~~~~~~~f~1 ré{~~t~~~J~1 - Original Message - From: dstanton@mncommunitycapitalfund.org To: iweyrens@citvofstioseph.com Sent: Friday, May 23,20033:34 PM Subject: MCCF Loan Committee Meeting ID.Ij I\1L'-¡:-"'-~':--~~}YA.. C.;(}-\{\n "~L"¡ C,\i"j¡·.\-i. ~·L-,-·~t; MCCF Home Page The MCCF Loan Committee met for the first time yesterday and approved the following four loans originated through MCCF members: Loan #1 is for the acquisition and renovation of a car wash in Kasson--originated by the Dodge County EDA. Citizens State Bank is providing a 20-year loan for $80,000 at 6.7%. The MCCF loan is subordinated at an anticipated par rate of - 6.6% for $75,000, also with a 20 year term. - Loan #2 is for property acquisition, building construction, and furnishings & equipment for a large child care center in Red Wing--originated by the Red Wing Port Authority. This $660,000 project is being financed by a $330,000 loan from Wells Fargo; $200,000 from the Southeast & South Central Initiative Foundation; $64,000 from the MCCF over 15 years at par; and, ten percent owner equity. (Since MCCF loans are limited to permanent financing only, this loan will be closed after construction of the project is completed later this year.) Loan #3 is for the acquisition and renovation of a tire service center in Hibbing-- originated by the Hibbing EDA. MCCF is providing both real estate and equipment financing through two separate loans, both in conjunction with Security State Bank. Our real estate loan is for $100,000 over 15 years at par; the MCCF equipment loan is a $50,000 loan for 7 years at par. Total project costs are $420,000. Loan #4 will help finance a new building for a title & abstract services business in Carlton--originated by Carlton County. A $150,000 MCCF loan was approved at a 15 year term at par. Woodlands National Bank is providing $456,000, also over a 15 year term, at 7%. Loan proceeds will be used for land acquisition, building construction, and equipment. Although we currently have more than a dozen projects in the pipeline, we are always looking for more opportunities to help businesses in your community grow. Please call us anytime you have a potential loan applicant that may benefit from the flexible financing available through the Minnesota Commuinity Capital Fund. http://mail.bevcomm.netlcgi-binIW ebMail/showmsg.cgi?MSGNO= 132&USERNAME=N... 5/27/2003 ocr