HomeMy WebLinkAbout2003 [10] Oct 15
.,
- ity of St. Joseph
. www.cityofstjoseph.com
25 College Avenue North
PO Box 668 St. Joseph Economic Development Authority
St. Joseph, MN 56374
(320) 363·7201 Meeting Notice
Fax: (320) 363-0342 Wednesday, October 15, 2003
4:00 p.m. City Hall
ADMINISTRATOR
Judy Weyrens
MAYOR 1. Call to Order.
Larry J. Hosch 2. Approval of Agenda.
COUNCILORS
Alan Rassier 3. Approval of Minutes.
Ross Rieke a. September 17, 2003 Regular Meeting Minutes.
Gary Utsch
Dale Wick 4. Financial Report.
a. Approval of Accounts Payable.
b. Financial Report.
. 5. Business.
a. Maintenance Facility.
b. Water and Sewer Connection Fees.
c. High Speed Data Line to Industrial Areas.
6. Director Report.
a. Prospect List! Activity Report.
b. Report from Staff Meeting.
7. Board Member Announcements.
8. Adjournment.
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CITY OF ST. JOSEPH
. ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes - Wednesday, September 17, 2003
Present: EDA Board Members Mike Deutz, Bruce Gohman, Larry Hosch, Ross Rieke (4:20 p.m.) and
Tom Skahen (4:40 p.m.).
Also present: Joanne Foust of Municipal Development Group and Judy Weyrens (4:45 p.m.)
President Deutz called theregular meeting of the St. Joseph EDA to order at 4:10p.m.
Agenda.
Moved by Rieke seconded by Deutz to approve the agenda, with the addition of Change Order #12 for
the maintenance facílíty and pay request #6 for the Maintenance Facílíty included under Business item A.
Motion carried 3-0.
Minutes.
Moved by Hosch seconded by Deutz to approve the minutes from the regular EDA meeting held August
20, 2003. Motion carried 2-1-0 with Riekeabstaining.
EDA Accounts Payable.
Foust provided an overview of accounts payable including the MDG contract for August in the amount of
$1,851.36. Foust noted MDG, Inc. drew down 4.0 hours from banked hours, during August.
Moved by Hosch- seconded by Rieke to approve the EDA September Accounts Payable in the amount of
$1,851.36 as presented. Motion carried 3-0.
. Financial Report
Foust provided a brief overview of the financial report noting revenues as of September 10, 2003 of
$54,453.71, which includes the city transfer in from the general fund for the entire year and the $25,000 .
transfer in for the MN Community Capital Fund, and expenditures as of September 10, 2003 of
$38,790.41 in Fund 150, the general operating fund of the EDA. Foust noted activity in the TIF funds and
Revolving Loan Funds are also included in the report.
It was the consensus of the EDAto accept the September Financial Report.
Maintenance Facility.
Change Order #12 for $118.00 to rough-in plumbing for a future break room sink in the lunchroom was
presented. In addition, Change Order #14 was included in the EDA packet. Change Order #14 included
a credit of $2,625 to the City for 30 loads of fill removed fròm the site and a cost of $620 for delivering an
additional four (4) loads of Class 2 fill to the site for a net credit balance of $2005.
Moved by Rieke, seconded by Hosch to approve change order #12 for $ 118.00 for rough-in plumbing for
a future break room sink In the lunchroom of the maintenance facílíty and to approve change order #14,
which is a $2,005.00 credit for fill removed from the maintenance facílíty site. With a/l in favor, the motion
was approved 4-0. (Skahen absent).
The EDA requested a complete listing of change orders, their purpose and dollar amount, noting change
order #13 appeared to be missing from the sequence of approved change orders.
Payment NO.6 in the amount of $ 4,814.10 to Shingobee Builders for the Maintenance Facility was
. presented to the EDA for consideration. Foust noted that items on the checklist have been substantially
EDA Minutes- September 17, 2003 Page 1
3
completed and the City Administrator, City Engineer and Public Works Superintendent Dick Taufen
· recommend acceptance of the facility and approval of payment, contingent upon the completion of two
items; (1) removal of a berm which is blocking drainage from the property to the north, owned by Cy
Prom, which previously flowed south, and (2) determination of responsibility for the restoration of the
storm water pond, installation of erosion control measures on the pond and seeding in the area.
The checklist of incomplete items was reviewed. Discussion relating to the drainage and grading of the
site occurred. EDA members questioned the removal of the berm adjacent to the Cy Prom property
asking if a hydraulic study had been complete and if Prom's storm water should be allowed to flow over
city property. The EDA also discussed erosion, which has occurred on the storm water pond, the need to
seed and install erosion control for the pond and determine whose responsibility this is. EDA members
agreed the City Engineer and Public Works staff should resolve these two items.
Moved by Gohman, seconded to Rieke to approve pay request #6 to Shingobee Builders for $4,814.10.
All in favor the motion was approved 4-0.
Moved by Rieke, seconded by Hosch to accept the maintenance facility contingent upon all incomplete
work being satisfactorily completed and to hold the retainage until the EDA and Council accepts the work.
A// in favor the motion was approved 4-0.
City Administrator Weyrens noted that an invoice from Outsource Management Systems would be
presented to the EDA for consideration in October.
Moved by Rieke, seconded by Hosch, to release the maintenance facility contingency funds to complete
paving for the project. All in favor, the motion was approved 4-0.
· City Administrator Weyrens excused herself from the meeting.
High Speed Data Line.
Several providers have been contacted since the last meeting including Astound, Quest, MN Technology
and the City of Buffalo. Quest is planning to have additional information, relating to the feasibility of
serving the business area north of County Road 75, within the next couple of months. Astound has not
yet provided any updates on their alternative plan.
Information on a city owned utility was included. It was the consensus of the EDA to pursue high speed
internet service through an established utility first, but leave the municipal owned utility option open as a
possibility if no other providers are able or willing to service this portion of the city.
EDA members requested MDG, Inc. follow-up with Quest, Astound, CloudNet and U.S. Cable prior to the
October meeting.
Industrial Park Development.
Foust reported that the EDA, as a part of the Comprehensive Plan implementation, has identified a need
to begin exploring options for a future industrial park. She noted she and Strack of MDG met with Joe
Prom and two of the other parties of the estate and toured the 320-acre area on the northeast side of the
city, in the joint annexation area. The parties of the estate are planning to meet on September 27,2003
to discuss the possible sale or development of the land. Foust noted that the Proms had expressed a
desire to develop residential lots in the area farthest north where there is rolling topography, large stands
of trees and wetlands and include the area which is flat and adjacent to Borgert Products in the industrial
park.
·
EDA Minutes - September 17, 2003 Page 2
:5
The EDA discussed their role in the development and noted facilitation of the project was appropriate.
· Additional information and EDA action will occur after the members of the estate meet. No formal action
was taken.
Prospect List/Activity Report.
A report outlining communication with various contacts was included in the EDA's packet. Foust also
provided several updates including the following: American Manufacturing is planning a 2,340 square foot
addition. Deutz noted that items identified by the Planning Commission from the previous building permit
have not been completed. Foust noted the City Administrator is aware of this and it will be noted at the
October 6, 2003 Planning Commission meeting.
Lange Excavating is planning a 7,120 square foot addition. The Planning Commission will review this site
plan on October 6, 2003. A dirt pile on the site will be addressed.
A lot split is being requested for Lot 1, Block 1, Indian Hills Park to accommodate the construction of an
office building. The Planning Commission will review this request at their October 6, 2003 meeting.
The former Vicwest Steel building has been leased to Midnight Haulers, a trucking company) for a five-
year term.
Director's Report.
Foust noted a Development Conference is being held on Oct 8-10 at the Radisson Hotel in Bloomington.
Focus is on economic development, workforce development and bioscience. Cost is $225 per attendee.
$500 budgeted for training/conferences if someone would like to attend.
Board Member Reports.
Hosch reported that he had received a letter' from the City Attorney regarding the inquiry relating to
· conflict of interest for an EDA member. He noted that the letter noted that there currently is not a conflict
of interest, but the potential for a conflict exists. The letter outlines the steps recommended to address
this. Deutz noted that he has received a copy as well and has forwarded it to his attorney for review and
response. EDA members will be sent a copy prior to the next EDA meeting.
Duetz removed himself from the EDA and requested an opportunity to address the Board. Deutz asked if
the EDA would assist in investigating annexation 'Of the property he and his partners own, east of the city.
He noted he would be interested in annexation, even without municipal utilities. It was the consensus of
the EDA to assist in the investigation of annexation, as they would for any other business.
EDA members were reminded of the open house for Borgert Products, to be held from 4 p.m. to 6 p.m. on
Thursday, September 18, 2003. The EDA sent a plant in recognition of the event.
Adjournment
Moved by Gohman seconded by Rieke to adjourn. All present voted in favor of adjournment, the EDA
meeting adjourned at 5:25 p.m.
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EDA Minutes - September 17, 2003 Page 3
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. www.cityofstjoseph.com ity of St. Joseph
25 College Avenue North DATE: October 8, 2003
PO Box 668 MEMO TO: St.Joseph Economic Development Authority
St. Joseph, MN 56374
(320) 363-7201 FROM: _1ìVt~ ¿C":>
Fax: (320) 363-0342 Joanne Foust & Cyntlila'Bmith-Strack, Municipal Development Group
RE: Accounts Payable- October, 2003 arid Financial Report
ADMINISTRATOR
Judy Weyrens
A. Accounts Payable:
MAYOR Following are Accounts Payable for the EDA's Consideration:
Larry J. Hosch
Payable To For Fund Amount
COUNCILORS MDG, Inc. Sept. Econ. Dev. Service 150-46500-300 $1,849.95
Alan Rassier Stearns County TIF 1-4 Certification 156-46500-300 $ 400.00
Ross Rieke Total $2,249.95
Gary Utsch
Dale Wick Action:
A MOTION is in order to approve the Accounts Payable
. B. Financial Report:
Attached is the financial report for the EDA.
Action:
A MOTION to approve the financial report is in order.
.
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s. 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
S1. Joseph, MN 56374
I Invoice Date 8-29-03 /I Payment Terms: 30 days II Customer ID #: ST J03ED I
Project August Economic Development Services
See attached detail
Amount: $1,500.00 Monthly contract fee-35 hrs
$ 0.00 Phone, postage, reimb. expenses
$ 351.36 Mileage: 976 miles x .36
$1,851.36 Total
Remit To: Municipal Development Group, Inc.
25562 Willow Lane
New Prague, MN 56071
. Dates-EDA
August 06, 2003 EDA Office Hours - 8.00 hrs. J. Foust
August 13, 2003 EDA Office Hours 7,00 hrs. C. Strack
August 20, 2003 EDA Office Hours & EDA meeting 8.00 hrs. J. Foust
August 21, 2003 EDA minutes 1.00 hrs. J. Foust
August 27,2003 EDA Office Hours 7.00hrs. C. Strack
Total August, 2003 31.00 hrs - Invoice for 35 hours
Banked Hours: 48.75 hours as of July 31st less 4.00 for August= 44.75 banked hours.
Thank you! We appreciated the opportunity to work with you!
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, Principal J<'
I Check No. I
. Date:
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. COU NTY OF STEA'RNS
Office of the County Auditor-Treasurer
P.O. Box 728 . 705 Courthouse Square Rm 136 . St. Cloud, MN 56302-0728
320-656-3870· Fax 320-656-6621
Randy R. Schreifels Dave Walz
Auditor-Treasurer Division Director
Invoice Date: 9/16/03 Invoice # : 30002026
Due Date . : 9/30/03 Customer #: 901
JUDY WEYRENS, ST JOSEPH CITY CLERK
PO BOX 668·
ST JOSEPH MN 56374
AUDITOR TIF CERITFICATION FEE Total Due: $400.00
CHECKS PAYABLE TO STEARNS CO AUDITOR-TREAS
PLEASE REMIT TO THE ABOVE ADDRESS
PLEASE REFER TO OUR INVOICE # WITH PAYMENT
)eription Unit of Amount
Measure Quantity Per unit Total
eIF ~ERT Each 1.0000 400.0000 400.00
~UDITOR TIf CERTIFICATION FEE
rIF ECONOMIC DEVELOPMENT .~
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CITY OF ST. JOSEPH 10108/032:17PM
Page 1
EDA Revenues
. . Current Period: October 2003
YTD %
SOURCE SOURCE Descr Rev Revenue Balance of
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 TIFIMIF DEPOSIT $0.00 $0.00 $0.00 0.00%
34151 IDB DEPOSIT $0.00 $0.00 $0.00 0.00%
36210 Interest Earnings $0.00 $173.71 -$173.71 0.00%
39201 Transfers from Other Fund $0.00 $54,280.00 -$54,280.00 0.00%
FUND 150 Economic Development $29,280.00 $54,453.71 -$25,173.71 185.98%
FUND 155 TIF 1-3 Borgert (SKN)
31050 Tax Increment $0.00 $8,890.49 -$8,890.49 0.00%
39201 Transfers from Other Fund $0.00 $0.00 $0.00 0.00%
FUND 155 TIF 1-3 Borgert (SKN) $0.00 $8,890.49 -$8,890.49 0.00%
FUND 156 TIF 1-4 St. 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 St. Joe Development $0.00 $0.00 $0.00 0.00%
FUND 250 Revolving Loan Fund
V 33130 Federal Grants-Community $0.00 $42,000.00 -$42,000.00 0;00%
J;~ 36210 Interest Earnings $0.00 $265.08 -$265.08 0.00%
iIi'212 CDAP Lo," Inlern'l $0.00 $140.00 '-. -$140.00 0.00%
9312 CDAP Loan Proceeds $0.00 $633.49 -$633.49 0.00%
F· D 250 Revolving Loan Fund $0.00 $43,038.57 -$43,038.57 0.00%
$29,280.00 $106,382.77 -$77,102.77 363.33%
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CITY OF ST. JOSEPH 10/08/032:17 PM
Page 1
- EDA· Expenditures
. Current Period: October 2003
YTD %
OBJ OBJ Oeser Balance of
FUND 150 Economic Development
DEPART 46500 Economic Development Authority
103 Legislative Bodies $700.00 $0.00 $700.00 0.00%
151 Workers Compo Insur. Premo $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 $14,972.56 $6,627.44 69.32%
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 $577.95 $622.05 48.16%
322 Postage $200.00 $100.00 $100.00 50.00%
327 Tax Increment Certification $0.00 $0.00 $0.00 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 $0.00 $0.00 $0.00 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 $0.00 $25,000.00 -$25,000.00 0.00%
DEPART 46500 Economic Development Autho $29,280.00 $40,720.51 -$11,440.51 139.07%
FUND 150 Economic Development $29,280.00 $40,720.51 -$11,440.51 139.07%
FUND 155 TI F 1-3 Borgert (SKN)
DEPART 46500 Economic Development Authority
300 Professional Services $0.00 $510.00 -$510.00 0.00%
. 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00%
340 Advertising $0.00 $19.43 -$19.43 0.00%
600 Debt Service - Principal $0.00 $2,454.97 -$2,454.97 0.00%
611 Bond Interest $0.00 $5,991.00 -$5,991.00 0.00%
620 Agent Fees $0.00 $0.00 $0.00 0.00%
DEPART 46500 Economic Development Autho . $0.00 $8,975.40 -$8,975.40 0.00%
DEPART 49301 Transfer to other Funds
700 Misc $0.00 $15,438.97 0.00%
DEPART 49301 Transfer to other Funds $0.00 $15,438.97 -$15,438.97 0.00%
FUND 155 TIF 1-3 Borgert (SKN) $0.00 $24,414.37 -$24,414.37 0.00%
FUND 156 TIF 1-4 Sf. Joe Development
DEPART 46500 Economic Development Authority
300 Professional Services $0.00 $640.00 -$640.00 0.00%
304 Legal Fees $0.00 $285.50 -$285.50 0.00%
327 Tax Increment Certification $0.00 $0.00 $0.00 0.00%
340 Advertising $0.00 $19.42 -$19.42 0.00%
600 Debt Service - Principal $0.00 $0.00 $0.00 0.00%
611 Bond Interest $0.00 $0.00 $0.00 0.00%
620 Agent Fees $0.00 $0.00 $0.00 0.00%
DEPART 46500 Economic Development Autho $0.00 $944.92 -$944.92 0.00%
FUND 156 TIF 1-4 Sf. Joe Development $0.00 $944.92 -$944.92 0.00%
FUND 250 Revolving Loan Fund
DEPART 46500 Economic Development Authority
490 Revolving Loan $0.00 $42,000.00 -$42,000.00 0.00%
.EPART 46500 Economic Development Autho $0.00 $42,000.00 -$42,000.00 0.00%
FUND 250 Revolving Loan Fund $0.00 $42,000.00 -$42,000.00 0.00%
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CITY OF ST. JOSEPH 10/08/03 2: 17 PM
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EDA Expenditures
· Current Period: October 2003
YTD %
OSJ OBJ Descr Balance of
$29,280.00 $108,079.80 -$78,799.80 369.13%
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.~ ity of St. Joseph
. www.cityofstjoseph.com
Date: October 8, 2003
25 College Avenue North Memo To: EDA Board Members
PO Box 668 :frtl1 F' 'lS
Sf. Joseph. MN 56374 Memo From: Joanne Foust and Cynthi Smith-Strack, Municipal Development Group
(320) 363-720 I
Fax: (320) 363-0342 RE: Maintenance Facility
ADMINISTRATOR
Judy Weyrens Change Orders:
The EDA requested a summary of the change orders which have been approved for the
MAYOR Maintenance Facility Building. Attached is a summary which illustrates a total of 14 change
Larry J. Hosch orders for a total accepted amount of $97,683.
COUNCILORS At the previous EDA meeting the EDA approved change order #14 (credit for $2005 for
Alan Rassier removal of soil from the site) and $118 to rough-in plumbing for a future breakroom sink.
Ross Rieke The EDA had inquired specifically about Change Order #13. This change order was not
Gary Utsch accepted by the Building Committee and therefore not forwarded to the EDA for action. It
Dale Wick was for a 6" x 2" blind flange for $131. A copy of all change orders received is attached for
your information.
Storm Water Pond/Drainage Issues:
. An update on the storm water pond and drainage/berm will be provided at the EDA meeting.
Pay Request:
Two pay requests have been received. Copies are attached for your review.
1. Architectural services $587.00 has been submitted. This is the remaining
balance from a pay request submitted in September for a total of $787 of which
$118 was approved.
2. Final contractor payment in the amount of $46,425.
EDA Action:
A MOTION is in order to approve a pay requests in the amount of $587 for project
management services and $46,425 for contractor services.
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· Maintenance Building
St. Joseph, Minnesota
9/2212003
Construction Costs
Construction Bid $381,750
Miscellaneous
Estimate Costs for steams Electric $800
Totàl Miscellaneous $800
Services
ArchitecturallEngineering $7,000
Civil Engineering Cost (SEH) $500
Total Services $7,500
Total Accepted Change Orders Pñor to Setting Budget $99,320
Continaencv
Starting Budget Amount $25,000
Total Proposed Change Orders $0
Total Approved Change Orders $0
Total Accepted Change Orders ($1,682)
Total Anticipated Change Orders ($1,682)
Remaining Contingency $26,682
· Land Acquisition $217,073
Total projected costs to Date $731,44ª
Bond revenues $654,735
Projected General Funds Needed $76,708
-
Subtract remaining Contingency $26,682
JActual General Funds Needed $50,026 I
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. OMS Invoice
._W':~t'j INVOICE #
. 8412ndAvenueSouth DATE
Waite Park MN 56387
. 320.259.4179 . 7/31/2003 10186
BILL TO
City ofSt. Joseph
c DUE DATE
8/15/2003
ITEM DESCRIPTION AMOUNT
architectural Maintenance Building 787.00
See Attached Breakdown Total
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_ ._______ d__' ----..---------.-- ~_. -. --- -. ---.. ' , - --~- __~_.__ h___
CITY OF ST. JOSEPH
$587.00 Maintenance Facility-design fee $0.00 $587.00
.
Check Total $587.00
$587.00 Maintenance Facility-design fee $0.00 $587.00
841 2nd Avenue South Waite Park MN 56387 Check Total $587.00
.. .'
i8
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~ 841 2nd Ave. So. Waite Park, MN 56387
. OMS Transmittal Office (320) 259-4179
Fax (320) 259-4402
TO: Judy Weyrens DATE: September 26, 2003
City of St. Joseph
ATTENTION: Judy
PROJECT: St. Joseph Maintenance Building
SUBJECT: Application for Payment #7, Subcontractor lien waivers to date
We are sending -±- copies These copies are:
J Attached herewith _ Submitted for approval
_ Under separate cover _ Approved
. Mail - Returned
-
UPS - Correct and resubmit
-
FedEx ~ For your use
-=- Spee Dee Delivery _ For your dištribution
Other - Other
-
Judy, the building and work related to the construction documents that I coordinated have been
completed. Please have Joe Bettendorf review and approve the grading issues connected with SEH's
grading plan.
Thank you,
Dean
ce Management Services
~ftk
. Dean A Wick
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t ity of St. Joseph
· www.cityofstjoseph.com
Date: October 8, 2003
25 College Avenue North Memo To: EDA Board Members
PO Box 668 .JYv1Y L í:::::'
St. Joseph, MN 56374 Memo From: Joanne Foust and Cynthia Smith-Strack, Municipal Development Group
(320) 363-7201
Fax: (320) 363-0342 RE: WAC and SAC fees
ADMINISTRATOR
Judy Weyrens Background:
The City Council is reviewing a new water and sewer connection (WAC and SAC) schedule
MAYOR for new construction. The City Council conducted a public hearing on the proposed fees in
Larry J. Hosch September and tabled discussion in order to complete additional research on how the new
fees would compare to area communities.
COUNCILORS
Alan Rassier The purpose of the amended schedule is to apply a more equitable utility connection fee to
Ross Rieke businesses. For example, currently a 4,000 square foot industrial would pay the same as a
Gary Utsch 40,000 square foot industrial even though they may have more employees using restroom
Dale Wick facilities or use more water in their process.
In addition, the city reviews water and sewer funds to ensure that these enterprise funds
have the revenues which financially support capital and operational costs.
· The Council understands the need to also consider the impact the proposed fees may have
on new business development.
Many communities În the metropolitan area have already adopted this schedule, designed
by the Met Council. Comparative information regarding other St. Cloud area communities
WAC/SAC schedules is currently being prepared and will be distributed at the EDA meeting.
Attached is a copy of the proposed fee schedule and the comparative information which was
not adopted by the City Council and may be revised.
EDA Action:
The EDA is invited to review the proposed fees and provide comments to the City Council on
the potential impact it mayor may not have on future commercial/industrial development.
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~ ORDINANCE 44
. AN ORDINANCE ESTABLISHING WATER AND SEWER SYSTEM
A V AILABILITY·CHARGES
, The City Council for the City of St. Joseph, HEREBY ORDAINS:
That Sections 41.2 and 42A, Subd. 2 of the St. Joseph Code of Ordinances are hereby repealed,
~d ~lacèd with,thi~QrdimlIlce 44~hi'¢l!:r~ad~~fol1ows:
"ORDINANCE 44: WATER AND SEWER SYSTEM AVAILABILITY CHARGES.
Section 44.1: Water and Sewer A vailabilitv Char2"es. Pursuant to Minnesota Statutes
Chapter 444.075 and all other powers delegated by the State of Minnesota, the City ofSt Joseph
hereby adopts charges to pay for the construction, reconstruction, repair, enlargèment,
- .
improvement and for the availability of potable water treatment, supply, storage and distribution
facilities; and for wastewater treatment, disposal and conveyance facilities. These charges, to be'
known as Water Availability Charges (WAC) and Sewer Availability Charges (SAC) shall be in
the amounts established in Section 5 herein. These charges are in addition to all other permit
fees, special assessments and connection charges heretofore established by the City.
Section 44.2: Water System AvailabilitvPermit Required. It shall be unlawful for
any person to connect any structure, property or building addition to the municipal water system
of the City, either directly or indirectly, or to install or alter any water supply plumbing system
. that is subject to the provisions of this ordinance, without first making written application to, ànd
obtaining, a Water System Availability Permit nom the City Administrator/Clerk's Office. The
WAC fee required herein must be paid before the ·Ci!y will issue a plumbing permit for said ~
connection to the municipal water system. Connection must be completed within two weeks of
issuance of a permit. No prepayment ofW AC fees is allowed. r --
Section 44.3: Sewer System Availabilitv Permit Required. It shall be unlawful for
any person to connect any structure, property or building addition to the múnicipal sewer system
of the City, either directly or indirectly, or to install or alter any wastewater collection plumbing
system that is subject to the provisions of this ordinance, without first making written application
to, and obtaining, a Sewer System Àvailability Permit nom the City Administratoi/Clerk's
Office: The SAC; fee required h~r~in must. be paid before the City will ~ssue a plumbing permit k
for saId connectIOn to the mumclpal samtary sewer system. ConnectIOn must be completed ~
within two weeks of issuance of a permit. No prepayment of SAC fe,es is. allowed.
~ ~ ~
Section 44.4:Char2"es. The WAC and SAC charges for all structures or properties to be .
connected t6 the municipal water and sanitary sewer systems shall be determined by multiplying
the "Base Rate"as-shown-in-'féfble1;-by the applicable WAC/SAC criteria· as shown in Table 2. .-~ -. --.
The City Council may adjust the Base Rate by Resolution at any time deemed appropriate by the
City Council.
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Table 1 !
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Base Rate Schedule for Water and Sewer Availability ,Charges
09/01/03 through 10/31/04 After 10/31/04
WAC $1,250.00 $2,500.00 !
SAC $1,250.00 $2,590:00 1.-
Table 2 !
Water Availability Charge/Sewer Availability Charge Criteria
FACILITY PARAMETER SAC/WAC
Single Family Residence Residential Unit 1 1
Multiple Family Residence (per.residential unit) each Residential Unit 1 1
Animal Clinic (humane societies, animal research, boarding,. etc.)
Animal holding areas 17 fixture units 1 1
Animal runs{kennels) 34 fixture units 1 1
Archery (6 feet/lane) 6 lanes .1 - 1
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· 'Arenas (bleachers 18 inches/person) 110 seats· 1 1 J
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Auditoriums (7 square feet/person) 110 seats- 1 1
Automobile Service
Fast service (less than 4 hours/car) . . 2 service bays 1 1
Major service (more than 4 hours/car) 14 employees 1 1
Car dealership (charges for office, retail, etc. are separate at established rates)
2 service bays 1 1
Fast service (number of service bays x 30%) 2 service bays 1 1
Major service (Number of service bays x 70% x lemployee/bay)
14 employees 1 1
Ballroom (exclude dance floor)
Facility without liquòr service 825 square feet 1 1
Facility with liquor service 590 square feet 1 1
Bank (exclude bank vault) 2400 square feet 1 1
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~ FACILITY PARAMETER 'SACIWAC
. BanquetRoom (15. square feet/person)
Food catered 2,060 square feet 1 1
Food catered with dishwashing 1,180 square feet 1 1
Food catered with liquor· 1,028 square feet 1 1
Food catered with dishwashing and liquor 750 square feet 1 1
Food preparation arid dishwashing . 825 square feet 1 1
Food preparation with dishwashing and liquor 590 square feet 1 1
Barber 4 chairs 1 1
Batting Cages (6 feet/lane) 6 lanes 1 1
Beauty Salon 4 cutting stations 1 1
Bingo Hall (used only for bingo) 110 seats 1 1
Boarding House (dorm rooms) . 5 beds 1 1
BodyShop (major service - more than 4 hours/car, no vehicle washing)
14 employees 1 1
Bowling Alleys (does not include 'bar or dining area) . 3 alleys . 1 1
. Camps (number of gallòns x occupant or site) -
Children's camps (central toilet and bath; overnight, primitive 274 gallons 1 - 1
cabins; number of occupants x 5 0 gallons/occupant)
Dav camps (no meals served; number of occupants x 10 274 gallons 1 1
gallons/occupant)
Labor/construction camps (number of occupants x50
gallons/occupant
. Resorts (housekeeping cabins; number of occupants.x pO 274 gallons 1 1
gallons/occupant)
Travel trailer parks-
With water and sewer hookup (number sites x 100 gallons/site) 274 gallons· 1 1
With central toilet and showers (number of sites x 75 gallons/site) 274 gallons 1 1
Sanitary dump (sites without hookup; number of sites x 10 274 gallons 1 1
gallons/site)
Car Wash Review by City Engineer
Catering Review by City Engineer
Churches· (for sanctuary, nave, chancel; 7 square feet/person 275 seats 1 1
· seating area; remainder use other criteria; sacristy and 1lJTIbulatory at
. no charge)
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~ FACILITY PARAMETER SAC/WAC
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Cocktail lounge (no food service) 23 seats 1 1
Coffee Shop (no food service) 23 seats 1 1
Correction Facility (prison) 2.5 irll:nates 1 1
Court Rooms 1,650 square feet 1 1
Dorm Rooms (on and off campus; charge for classrooms is 5 students 1 1
additional)
Daycare
Number of children for which facility is licensed 14 children 1 1
Child/adult play area (not licensed) 490 square feet 1 1
Dry Cleaners (retail) 3,000 square feet 1 1
Elder Housing (at 100% of current SAC rate; see formula below to
determine the number of residents)
( Nó washer/dryer in each unit 3 residents 1 1
Washer/dryer in each unit- 2.5 residents 1 1
Three bedroom unit with waSher/dryer (separate :fi;om formula below) -}
· Ca1culatè the number of residents as follows:
Number of efficiency units x 1.0 residents/unit ~ _
+ Number of one-bedroom units x 1.5 residents/unit)
+. Number of two-bedroom units x 2~0 residents/unit)
+ Numberofthree-bedroom units x 3.0 residents/unit)
Total number of residents for SAC calculation
Exercise Area/Gym (juice bars at no charge; sauna and whirlpool
700 square feet included) 1 1
No showers 2,060 square feet l' . 1
Fire Station (charges for office, meeting rooms, etc., are separate, at established rates)
Washing (hose tower, truck) 274 gallons 1 1
Fu11 time, overnight people (75 gallons/person) 274 gallons 1 1
Volunteer (occasional overnight stays) 14 volunteers 1 1
Funeral Home (charge for viewing areas.only: i.e., chapel) 770 square feet 1 1
~ Apartment 1 apartment 1 1
Game Room (billiards, video and pinball games)
With bar 590 square feet 1 1
Without bar 2,060 square feet 1 1
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FACILITY PARAMETER SACIWAC
. Golf Course (if facility has showers, use Locker Room criteria for those areas)
18 hole 3 3
9 hole (par. 3) 2 2
Miniature 3 3
Country club (private)
Dining room (used only on evenings and weekends) 15 seats 1 1
Bar and grill (with bar and grill separate)
Bar only 23 seats 1 1
Grill 15 seats 1 1
Golf Dome or Driving Range 6 driving stations 1 1
Greenhouse
Area not open to the public 15,000 square feet 1 1
Area open to the public 5,000 square feet 1 1
. General retail area 3,000 square feet 1 1
Group Home
Secondary treatment (residents leave during the day) . 5 beds 1 1
Primary treatment (residents stay all day) 3 beds 1 1
Guest Rooms (in an apartment or condominium complex; charge
. SAC as apartment)
. Washer/dryer 100% of current SAC rate
No washer/dryer 80% of current SAC rate
No kitchen 50% of cu:Î.Tent SAC ràte
Handball and Racquetball Courts 1 court 2 2
(
Hospitals (licensed beds or baby cribs) 1 bed 1 1
Outpatient clinic 17 fixture units 1 1
Sterilizers (4 hours x gallons per minute x 60 minutes) 274 gallons 1 1
X-ray film processors (9 hours continuous operation; 4 274 gallons 1 1
hours intermittent operation; operàtion time (hour's) x
gallons per nllnute x 60 minutes)
Dental clinic vacuum device (9 hours x gallons per minute x 274 gallons 1 1
60 minutes)
Ice Arena
Showers (see Locker Rooms) .
Team Rooms (plumbing fixture units) 17· fixture units 1 1
Bleachers 110 seats 1 1
Ice resurfacers (if discharge goes to the sanitary sewer) 4 4
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- FACILITY· PARAMETER SAC!WAC
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Laundromat (required water volume for cycle time x 8 cycles/day)
274 gallons 1 1
Library (subtract book storß.ge areas, file areas; charge
for common plumbing fixture units in public areas) 17 fixture units 1 1
, Meeting rooms, board rooms, recep~ion, book
checkout offices 2,400 square feet 1 1
Loading Dock 7,000 square feet 1 1
Locker Rooms (if showers - 20 gallons/locker) 14 lockers 1 1
Medical ClinIc (see Hospitals, Outpatient Clinic)
Meeting Rooms (conference rooms) 1,650sq'Uare feet 1 1
Mini-storage (storage area- no charge)
Living area 1 1
,Public restroom 17 fixture units 1 1
~ Mobile Home 1 1
. Motels and Hotels (assume 2 persons/room; no charge for pools, , 2 rooms'· 1 1 )
saurias, whirlpools, game rooms, or exercise rooms used exclusiyely
by guests)
Breakfast only (complimentary) 45 seats . 1 1
Cocktail hour (complimentary) 55 seats 1 1
Kitchenettes (number of kitchenettes x 10 gallons/day) 274 gallons 1 1
Museum 2,400 square feet 1 1
Nursing Home 3 beds 1 1
Office
General office (deduct mechanical rooms, 2,400 square feet 1 1
elevator shafts, stairwells, restroom and storage areas)
Dental and Doctor's offices, see Hospital, Outpatient Clinic·
Police Station (charge as Office)
Cells (overnight - jail) - 3 people 1 1
Cells (holding area with no overnight stays) 14 people 1 1
Recording/Film Studios 7,000 square feet 1 1
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- FACILITY PARAMETER SAC/WAC
. Restaurant
Drive-in 9 parking spaces 1 ' 1
Fast food (with disposable plates, drink cups,
and table utensils) 22 seats 1 1
Take-out (no seating) 3,000 square feet 1 1
Full service (with washable plates, drink cups,
and table utensils) 8 seats 1 1
Retail Stores (deduct mechanical rooms, 3,000 square feet 1 1
elevator shafts, stairwells, escalators, restrooms and unfinished storage areas)
Roller Rink (skating area only) 825 square feet 1 1
Rooming Houses (no food service) 7 beds 1 1
RV Dumping Station (not in association with camp grounds) 1 1
Schools
Elementary schools (at 15 gallons/student; 30 square feet/student)18 students. 1 1
Colleges/technical/vocational (30 square feet/student) 18 students 1 1
Lecture halls 18 students 1 1
Labs (at 50 square feet/student) 18 students 1 1
. Dorm rooms (on and off cariJ.pus students) 5 students 1 1
Nursery schools (number of children for which facility is licensed) 14 students 1 1
House of worship nurseries (used during worship 2,400 square feet 1 1
service only; 30 square feet/child) ,
Secondary schools (30 square feet/student, at 20 gallons/student) 14 students 1 1
,Labs (50 square feet/student) 14 students 1 1
Weekly worshipschools (i.e., not daily parochial schools; 55 students 1 1
20 square feet/student)
Service' Station
Gas pumping 1 1
,Convenience center 3,000 square feet 1 1
Service bays 2 bays 1 1
Car wash (see Car Wash)
Shooting Ranges (rifle and handgun ranges, @ 6 feet per lane) 6 lanes 1 1
, Swimming Pools (public, swimming pool area only; . 900 square feet 1 1
no charge for private residential, townhouse, apartments,
condominiums, hotels, or motels)
Tanning Rooms 3,000 square feetl '1
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- FACILITY PARAMETER SACfWAC
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Tennis Courts (public; shower facilities available) . 1 court 2 2
Theatre 64 seats 1 1
Drive-in (parking spaces) 55 spaces 1 1
Vehicle Garage
Bmployeesstationed in garage 14 employees 1 1
Vehic1e drivers (per day) 28 drivers 1 1
Vehicle washing (number of vehicles per day x 274 gallons 1 1
gallons pet minute x minutes/vehicle)
Warehouses
Assembly areas 7,000 square feet 1 1
. Office/warehouse
Minimum 30% office 2,400 square feet 1 1
Maximum 70% warehouse 7,000 square feet 1 1
Whirlpools, therapy (at doctor's office or clinic; 274 gallons 1 1
number of galloris to fill tank x 8 fills/day)
Yard Storage Buildings (i.e.,·lumber storage; customer 15,000 square feet 1 1
. pickup; no permanent employees) ì
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- Plumbing W asteFixture Units
Tvpe of Fixture Fixture Unit Value (f.u.)
. Note: 17 Fixture Units (f.u.) = 1 SAC
Drinking Fountain 1
Floor Drain
2" waste (only ifhose bib included) . 2
3" waste (only ifhose bib included) 3
.4" waste (only if hose bib· included) 4
Trench drain: per 6- foot section 2
Sinks
Lab in exam room, bathroom 1
Kitchen and others 2
Surgeon 3
Janitor 4
Water closet 6
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~ Section 6. Violations and Penalties. A violation of any of the provisions of this
. ordinance shall constitute a n1isdemeanor pùrsuant.to Minnesota Statutes.
Section 7. Severability. Should any section; paragraph, provision, sentence or lesser
part of this Ordinance be found invalid by a Court· of competent jurisdiction, then such invalid
section, paragraph,_ provision, sentence or phrase shall be severed ITom this Ordinance and all
remaining portions or this Ordinance shall continue' in full force and effect.
Section 8. . Repealer.· All ordinances, or portions öf ordinances, in conflict herewith
are hereby repealed· to the extent of such conflict.
Section 9. Effective Date. This Ordinance shall take effèct September ,
2003, following passage and publication in the official newspaper as provided by law."
This Ordinance was approved by the majority of the City Council of S1. Joseph on this _day
of ' ,2003..
Larry Hosch, Mayor
Judy Weyrens, Administrator/Clerk
. This amendment was published in the
on , 2003.
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Date: October 1, 2003
Memo To: EDA Board Members
Memo From: Joanne Foust and Cynthia Smith-Strack, Municipal Development Group
RE: High Speed Data Line -Industrial and Commercial Areas
Background
The EDA continues to work toward its goal of having high-speed data line plant installed in the
industrial areas of the City. At its September 17, 2003 meeting the EDA directed MDG to follow up
with Astound, Qwest, US Cable and Cloudnet regarding high speed internet connection access in
the industrial areas of the City.
Astound:
MDG phoned the Commercial Account Manager at Astound Broadband on September 23, 2003.
MDG left a voicemail message regarding the status of study of wireless option for providing high
speed internet access in the industrial park. The Astound representative called back and indicated
the deployment of wireless technology would be delayed until next summer.
Qwest:
MDG spoke with an Qwest Engineer Doug Isaacson on September 23, 2003, Isaacson indicated
that he had 'moved the project up the ladder to the Vice President of Minnesota Operations and
· hoped to have more information shortly. Isaacson indicated he would let the City know as soon as
more information was received.
CloudNet Wireless:
Commissioner Rieke and Foust, MDG, met with representatives from Cloud Net on October 1, 2003.
They noted they currently provide wireless internet service to a few businesses in the business park.
The service, however, is dependent on a clear line for signal transmission from the nearest tower to
the business, therefore not all businesses can currently be served. CloudNet is currently
investigating the installation of a tower in St. Joseph which would allow service to the business park
and beyond. They are available to visit with property owners regarding serviceability of their property.
US Cable:
US Cable is a locally owned business headquartered in Cold Spring. MDG contacted the owner on
September 23, 2003. Commissioner Gohman met with a representative on September 29, 2003
regarding their ability to service the business park. Commissioner Gohman will provide an update at
the EDA meeting.
Additional Information:
MDG is assisting the City with an update of its right-of-way management ordinance (i.e. Ordinance
57). The proposed ordinance contains language requiring telecommunications utility providers to
register with the City on an annual basis. Registration requirements include, but are not limited to:
the submission of local contact names, addresses and phone numbers for all utility providers; proof
of insurance; a current year's build-out/maintenance plan and, if available, the five year build-
out/maintenance plan. The purpose of the registration is to supply current information to the City and
provide an opportunity to actively coordinate utility/service projects.
· EDA Action:
No action is required, unless the EDA wishes to direct additional action.
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THIS PAGE INTENTIONALL Y LEFT BLANK
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MUNICIPAL
DEVELOPMENT GROUP, INC.
DATE: October 8,2003
MEMO TO: Economic Development Authority
FROM: ,1 '1t\F . ~LS
Joanne Foust & Cyn ia Smith-Strack, Municipal Development Group
RE: Economic Development Activity Report - September, 2003
Municipal Development Group has been interacting with a number of prospects throughout the past month.
Following is a summary of activities that have transpired. If you have any questions on any of these or other
projects, please do not hesitate to contact us at 952-758-7399. Business Prospects have been identified bya
project number to protect the confidentiality of the businesses.
Project 01-E: fwD'
This project involves the expansion of a service within the community. MDG has been keeping in touch with the
project contact over the past two years, the latest communications occurred on August 20th when a letter was
mailed and September 23rd when a phone message was left.
Project 01-F:
This company has been in contact with the EDA regarding potential sites for a commercial business since August,
2001. MDG has forwarded the contact information on a number of sites, including follow-up on September 3, 2003.
. MDG's latest contact with the company was an email on September 23, 2003.
Project 01-J:
This developer owns a commercial subdivision in St. Joseph and has constructed a commercial building. MDG has
been working with the developer and has forwarded potential business leads. Contact with the developer was
made on August 20th and 2ili. MDG spoke to a company considering land in this subdivision on September 3,
2003. Sale of a portion of Lot 1, Block 2 to Prospect 01-N is pending.
Project 01-N:
This company has been searching for commercial lots for the construction of an office building since the fall of
2001. Contact with this developer occurred on September 3rd, 8th, 10th, 1 ih, 23rd and 25th. The project is currently
moving through the lot split approval proce](. .Construction is expected to occur next Spring.
01'\ -J
Project 02-E:
This company is looking for approximately 1 acre of land for an industrial use for an expansion possibly in 2004.
MDG last followed up with the company representative on October 8,2003.
Project 02-L: "tvtf
This company filed plans to construct a 32,00~ðare foot multi-tenant building in St. Joseph business park. A
portion of the facility is available for lease. MD a flyer on the building to a potential tenant on September 3, 2003.
The company has recently retained a commercial realtor to assist as well.
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 last followed-up on September 17, 2003.
. 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 with a letter on October 8, 2003.
EDA Monthly Project Report - September, 2003 Municipal Development Group - Page 1
35
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· Project 02-DD:
This prospect contacted the City at the close of 2002 regarding residential and commercial acreage within the
community. MDG has been continuing to follow up with the lead, most recently a letter was mailed on October 8,
2003.
Project 02-FF:
This company inquired about industrial property the end of December 2002. They have noted their plans for an
expansion are one to two years away. MDG most recently followed up with the company on October 8, 2003.
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 workin~ with them over the past several months. Follow-up and correspondence most recently
occurred on September 23r ,26th and 29th. A meeting with the developers and City staff took place October 1st. A
meeting with the developer, city staff and an adjacent landowner is scheduled for October 15th
Project 03-1:
This contact phoned the City last spring regarding 5,000 sJ. of retail lease space. MDG has been following up
routinely with the last contact occurring on September 1 ih.
Project 03-K:
This contact requested information from MDG on starting a business and zoning regulations in the Central
Business District, last spring. MDG most recently followed-up with this contact on October 8th.
Project 03-M:
This company contacted the city in May, 2003 regarding commercial space, In July they noted they thought they
had secured a building in St. Cloud. MDG left a message for them on September 23, 2003 to follow-up/confirm
· alternate site secured.
Project 03-T:
Inquiry forwarded to MDG on October, 1st regarding mixed use for a parcel near CSAH 75. MDG forwarded
information regarding TIF, tax abatement and the Minnesota Community Capital Foundation and applicable zoning
regulations. MDG followed up with the contact on October 8th.
Project 03-U:
Inquiry forwarded to MDG on October 1st regarding a commercial development in St. Joseph. MDG forwarded
information on October 2nd and followed up with a phone call on the 8th.
Project 03-V:
This prospect left a message for the City Administrator on Wednesday, October 08, 2003 regarding expansion of
existing commercial enterprise to the City of St. Joseph. MDG followed up with the contact and left a voice mail
message on the 8th.
Project 03-W:
This developer contacted the City on October 8, 2003 regarding the expansion of an existing facility. MDG
forwarded zoning information via fax.
Other:
MDG met with representatives from the Feld Estate who indicated the family does want to proceed with sale of the
property. The family is currently meeting with estate officials to determine the best way to proceed. They have
requested aerial photography currently being completed be layered with data regarding the joint annexation area
and the future land use map from the Comprehensive Plan to determine the area(s) within the joint annexation
agreement and future land use map.
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EDA Monthly Project Report - September, 2003 Municipal Development Group - Page 2
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. ity of St. Joseph
. www.cityofstjoseph.com
DATE: October 8, 2003
25 College Avenue North MEMO TO: St. Joseph Economic Development Authority
PO Box 668
Sf. Joseph, MN 56374 FROM: ~)lAJ\ r tl~
(320) 363-720 I Joanne Foust & Cyntnla Smith-Strack, Municipal Development Group
Fax: (320) 363-0342 RE: JOBZ Tax Free Zones Update
ADMINISTRATOR Background
Judy Weyrens Earlier this year the state legislature approved an initiative known as Job Opportunity Building
Zones (JOBZ). The goal of JOBZ is to stimulate economic development activity in distressed
MAYOR areas of Minnesota by providing local and state tax exemptions. The Department of
Larry J. Hosch Employment and Economic Development (DEED) is responsible for implementing the program.
Applications for zones must be submitted to the State by October 15, 2003. Although eligible
COUNCILORS applicants include local units of government, DEED has indicated applications submitted by
Alan Rassier multiple units of government are strongly encouraged. To those ends, most applications are
Ross Rieke being completed by the state's regional development commissions, of which there are twelve.
Gary Utsch
Dale Wick As you may recall, MDG attended two meetings regarding JOBZ earlier this summer. At the
initial meeting DEED Representative Louis Jambois indicated the Twins Cities, Rochester and
St. Cloud metro area would likelv not be competitive in applvinq for a JOBZ desiqnation due to
the amount of qrowth occurrinq in the areas. Because the Stearns, Benton, Sherburne and
. Wright Counties are not actively involved in a regional development commission, a quad-county
economic development meeting was held to further discuss a JOBZ application on behalf of the
quad-county area. Discussion at the quad-county meeting indicated low interest in the program
due to the scope and term of tax exemptions (i.e. corporate franchise tax, income tax for
operators or investors, sales tax on goods/services, property taxes on commercial and industrial
improvements but not on land and employment tax credits for high paying jobs for twelve
years), use of other financial incentives available (i.e. TIF and tax abatement) and the lack of a
regional application coordinator. Consensus of the qroup was to continue promotion of
economic development initiatives on a reqional basis without an application to the JOBZ
proqram.
In an effort to ensure St. Joseph remains competitive with financial programs being offered by
neighboring communities, MDG has remained in contact with DEED, the West Central Initiative
Foundation, the Initiative Foundation in Little Falls, the East Central Regional Development
Commission and other regional entities (i.e. Benton County HRA, the Partnership and the City
of Sartell) regarding application status. Following is an update on applications being submitted:
The City of St. Cloud HRA is submitting an application and proposing the former Fingerhut
property and a few vacant parcels in their downtown be included in a tax free zone (they are co-
submitting an application with the East Central Regional Development Commission). In addition
the cities of Melrose and Sauk Centre are included in the West Central Initiative Fund's
application. The Partnership is not involved in the submittal of any applications.
DEED has indicated parcels within the St. Cloud area proposed for inclusion in the JOBZ
program would need to meet statutory guidelines and likely include only selected redevelopable
parcels for which redevelopment plans were already in place and not industrial parcels. Benton
County HRA has indicated only one parcel within the County (a redevelopment parcel in the
. City of Sartell) has been proposed to be included in a tax free zone. DEED will designate up to
ten tax free zones across the state by December 31st of this year.
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. l~;.........".····.'."......·a......................... ..........~........'...I.{¡¡[,.,i.'.".Æ....)!I..... Goal: S.ti~ulate economic developmen~ activity in distressed areas of Minnesota
. tì {¡ili\ G'I"" , by provldmg local and state tax exemptions.
w~.i 1;\\\"" 11·· 'Ji
10&% "'" . ,,' "
. MINNESOTA
JDb Opporlv"ilyBuildinglDnO<
Zone Up to 10 Job Opportunity Building Zones (JOBZ) and 5 Agricultural Processing Facility Zones (APFZ)
Characteristics: can be created for a maximum duration ofl2 years. JOBZ cannot exceed 5,000 acres but may include
one or more non-contiguous sub-zones and multiple commercial/industrial properties. APFZ cannot
exceed the size of the facility and space for ancillary facilities and expansions in the reasonably
foreseeable future.
Eligible Greater Minnesota local units of government are eligible to apply. Multiple local units of government
A.pplicants: are strongly encouraged to submitjointlmulti-jurisdictional JOBZ applications.
Type oJ Corporate franchise tax; income tax for operators or investors; sales tax on goods and services used in the
Tax Exemptions: zone if the goods and services were purchased during the duration of the zone; property tax on
commercial and industrial improvements but not on land; wind energy production tax, and; employment
tax credit for high paying jobs.
Aid is available to zones that experience a 3% drop in tax capacity as a result of property tax exemptions
provided through the zone.
Exemption does not apply to the following property: Property subject to a general obligation bond levy;
Property subject to a school operating referenda approved by the voters before designation of the JOHZ
. or APFZ; Land only (improvements to land are exempt); Property where neither the owner or lessee is a
qualified business (see eligible propertylbusiness section for qualified business definition).
Eligible Tax exemptions apply only to qualified businesses. Qualified businesses include businesses in the Zone
PropertY/Business: at the time of designation, business startups in the Zone, business relocations from other states, and
business relocations from Minnesota if the business increases employment by 20% within the first year
or makes a capital investment equal to 10% of gross revenues.
Zone Selectìon Applicants for Zone designation must submit a Development Plan outlining details of the proposed Zone
Criteria: to the Department of Employment and Economic Development (DEED). Zone selection will be based
on: poverty rates, average weekly wages, deteriorated or underutilized property, low housing median
sales price, low household income, population loss, sudden or severe job loss, physical problems on sites,
adequate infrastructure, low business startup or expansion rates, viability and creativity of Development
Plan, local public/private commitment, dedication of existing resources, relationship to other economic
development activities, linkage between job creation and training, and reduced regulation.
Deadlines: August 1,2003 - Application/Content Requirements Published
October 15, 2003 - Applications Due
December 31, 2003 - Zones Designated
January 1,2004 - Zone Designation in Effect
Department of Employment and Economic Development
500 Metro Square, 121 7th Place East . St. Paul, MN 55101-2146 . (651) 297-1291 or (800) 657-3858 . www.dted.statc.mn.us
.
3ß
. VRajkoWSki
11 Seventh Avenue North . t:r~~~fJl~t~ Ltd.
P.O. Box 1433
St. Cloud, MN 56302-1433 September 11, 2003
320,251-1055
Toll Free 800,445-9617
The Honorable Larry Hosch
Fax 320-251-5896 Mayor - City of St. Joseph
25 College A venue North
rajhan@rajha!1.com~ P.O~ Box 668
St. Joseph, MN 56374
www.rajhan.com
RE: Conflict of Interest Question Regarding EDA Commissioner
Our File No. 22641
Dear Mayor:
At your request, I have been asked to render an opinion whether an EDA Commissioner's
. ownership and development of property as an industrial park creates a conflict of interest
with the Commissioner's duties with respect to development of a City industrial park
which is located within one-quarter to one-half mile away from the Commissioner's
private park.
FACTS
Frank J. Rajkowski ..
Gordon H. Hansmeier The City of St. Joseph has an Economic Development Authority (EDA) which is
Frederick L Grunke governed by five Commissioners who are appointed by the City Council. One of the
purposes of the EDA.isto encourage, attract, promote and develop economically sound
Thomas G. Jovanovich· industry and commerce within the City for the prevention of unemployment in the City.
Paul A. RajkowskiO Currently, one of the major efforts of the EDA is to attract owners and tenants to an
industrial park which is located within the City limits of St. Joseph. The City had worked
Kevin F. Gray with the landowner of this land to develop the land as an industrial park. The City had
Villiam J. Cashman negotiated an agreement with the landowner to sell the land at an agreed-upon price to
Richard W. sobalvarro make it attractive to fuh!-~þuy(;r§..J~~!!Y has expended resources in extending City
services to the industrial park area.. The agreement has expired; however, the City ---- -- -------------~--
usan M; Dege continues to promote sale of property in this industrial park.
eAnne D. Bartishofski Currently, the ED A is working to identify another area and work with the landowners to
arah L Smith develop the area as another industrial park within the corporate limits of the City. The
Troy A. Poetz development, promotion and sale ofthis new ìndustrial park land could be in direct
'.M. Bromeland competition with the Commissioner's private land.
'jregory 1. Haupert
Frank J. Rajkowski and Richard W. Sobalvarro are admitted to practice in North Dakota, Gordon H. Hansmeier in North Dakota and Wisconsin,
Paul A. Rajkowski and Sarah L. Smith in Wisconsin, and William J.. Cashman in South Dakota.
-Member of American Board-of Trial Advocates. °Quålified ADR-Neutral.
V
September 11, 2003
. Page -2-
In order to sell this property, the EDA staff and Commissioners must deal with prospective
developers in an effort to have them purchase property for purposes of businesses locating in the
industrial district. Many times these discussions- are confidential at the request of the developer.
One of the EDA Commissioners is currently developing an industrial park immediately to the east
of the City's industrial park. The la.nd owned by the EDA Commissioner is approximately one-
quarter to one-halfmile away from the City industrial park. The Commissioner's land is located in
the Township. This land is earmarked to come within the City in approximately five to ten years
based on an Orderly Annexation Agreement with the Township.
ISSUE
Based on the above facts, the City would like to determine whether the ED A Commissioner's
ownership and development of the industrial park immediately to the east of the City boundaries
creates a conflict ofinteresf with the Commissioner's duties on the EDA when the EDA is
promoting and developing a City industrial park approximately one-quarter to one-half mile away
from the Commissioner's land.
OPINION
. The Commissioner's ownership and the development of an industrial park located in close
proximity to the City park likely creates a conflict of interest with the Commissioner's EDA duties
with respect to promotion and development of the City industrial park. Accordingly, the
Commissioner should disclose the conflict in writing to the EDA and not participate in any actions
involving the City industrial park.
DISCUSSION
Official and Non-Official Conflict of Interest
There are two types of conflicts of interest which apply to public officials - official and non-
official. The official conflict ofinterest mandates that public officials "may not have a personal
financial interest ina sale, lease, or contract they are authorized to makè in their official capacity."
Minn. Stat. § 471.87. A public official who violates this rule risks a gross misdemeanor charge,
subject to 13 exceptions. Minn. Stat. § 471.88.
Situations may also exist where council members have a personal or fmancial interest in a non-
contract decision. Such matters may include council decisions on zoning, local improvements and
the issuance of licenses: League of Minnesota Cities Handbook, Part III (A)(1). A non-official
conflict of interest is at issue here.
.
V
September 11, 2003
· Page -3-
Law
Minnesota Statutes 469, et al. sets forth the law regarding economic development authorities which
may be set up by municipalities. Minn. Stat. § 469.009 outlines the procedures a Commissioner on
a municipal EDA must follow when presented with a potential conflict of interest. If the
Commissioner fails to follow the appropriate procedure, he may be guilty of a gross misdemeanor.
Minn. Stat. § 469.009.
Minn. Stat. § 469.009 describes a potential conflict of interest as being present "if the commissioner
. . . knows or has reason to know that the organization with which the commissioner. .. is affiliated
is or is reasonably likely to become a participant in a project or development which will be affected
by the action or decision." Minn. Stat. § 469.009. The statute does not require a disclosure
statement if the effect on the commissioner or the decision will be "no greater than on other
members ofthe business, profession, or occupation," or if the potential effect on the organization is
"indirect, remote and insubstantial." rd. A commissioner who knowingly fails to abide by the
aforementioned procedure or knowingly submits a false statement may be guilty of a gross
misdemeanor. rd.
The statute requires an interested commissioner to follow certain procedures before m~king a
decision which could substantially affect that commissioner's or the organization's financial
· interests. These procedures are: (1) prepare a written statement describing the matter requiring
action and the nature of the potential conflict of interest, and (2) submit the statement to the
commissioners of the authority no later than one week after the commissioner becomes aware of the
conflict, and those commissioners should enter the statement upon the minutes at the next meeting~
Minn. Stat. § 469.009, subd. 1.
Once a commissioner has properly disclosed a matter, his superior should immediately assign that
matter to another commissioner or employee who does not have a conflict of interest. Minn. Stat. §
469.009, subd. 2. The interested commissioner should refrain from the following once the matter
has been assigned: (1) attempting to influence an employee in any matter related to the action or
decision in question, (2) taking part in the action or decision, and (3) counting toward a quorum in
any meeting upon which the decision is based. Id. A commissioner who knowingly violates these
restrictions may be guilty of a gross misdemeanor and may also be removed from office by the
governing body ofthe municipality. Minn. Stat. § 469.010.
On its face, this statute would probably prevent the Commissioner from engaging in any
preliminary matters regarding the industrial park. First, the facts provided indicate that itis
reasonably likely that the City will be affected by the Commissioner's participation in a competing
industrialpark. Second, the potential effecton the City is not indirect, remote or insubstantial.
Rather, the potential for personal financial gain is great and will directly affect the City if acted
upon, particularly given the fact that the Commissioner's industrial park is located within one half
mile of the City's park. Also, the Commissioner has personal knowledge of which businesses are
planning to relocate to the area and has already retained a realtor to obtain a list of prospective
· buyers.
v
· September 11, 2003
Page -4-
Even if the Commissioner's interests are not intended to harm the City's economic development or
are never acted upon, the standard is whether he could "reasonably become" an interested
participant. The law views reasonableness under an objective standard, asking what a reasonable
person would do in a similar situation and will not take into account the Commissioner's individual
motives. An objective observer may find it simple for the Commissioner to use confidential
infonnation obtained in the course of his public duty to his personal advantage.
The safest course of action for the City and the Commissioner to follow would be to make a written
disclosure of the possible conflict and then follow the procedures outlined in the statute. First, the
Commissioner should prepare a written statement describing the nature of his interest in the
industrial park. Next, he should submit that statement to the EDA within one week, and the EDA
should enter the written statements upon the minutes at the next meeting. The city should then
assign the industrial park matter to those commissioners who do not have a conflict of interest. All
the while, the city should make sure that the interested Commissioner does not take part in any
decision regarding the industrial park, count toward a quorum or otherwise attempt to influence the
EDA. The city should be sll!e to inform the Commissioner that ifhedoes not abide by the
aforementioned procedures, he may be guilty of a gross misdemeanor and subject to removal.
· The difficulty in arriving at an opinion in such a case as this is that the case law interpreting the
statutes is limited to instances where a commission or counsel has already taken action and a court .
has considered voiding the council action for conflict of interest. Unlike the case law, the EDA in
this matter remains engaged in preliminary discussions and has yet to act on any matter regarding
the industrial park. In order to evaluàte this matter better, we have looked at the Sauk Rapids Code
of Ethics. The City of St. Joseph does not have such a code, however, the SaukRapids Code of
Ethics does shed some light on the nature of such conflicts of interest. It should be pointed out that
the Sauk Rapids Code of Ethics is not binding on the City of St. Joseph.
The Sauk Rapids Code of Ethics requires a Commission member to disclose any potential conflict
of interest to the City Administrator and to the body on which the member serves.
Under the Code of Ethics, a commissioner who does the following has a "potential conflict"
(1) engages or intends to engage in a business or transaction which may reasonably be
perceived as incompatible with the proper discharge of one or more official city duties,
(2) may reasonably be perceived as tending to impair the person's independent judgment or
action in the performance of city duties; or
(3) sponsors, advocates or acts upon city legislation which may affect the. covered person's
personal or [mancial interest which differs materially ftom that of the public at large.
·
I
V
September 11, 2003
. Page -5-
City of Sa uk Rapids Code of Ethics, §1.1O, subd. (4).
In addition to these "potential conflicts," the Code of Ethics further prohibits eight other "conflicts."
The most relevant are: (1) use of confidential information obtained as a result of public position for
personal gain, (2) holding investments which will or may interfere with the proper discharge of
public duty, and (3) participation as a public representative in a city transaction in which the person
has a direct or indirect financial or other personal interest. City of Sauk Rapids Code of Ethics,
§1.l0, subd. (5).
Under theSauk Rapids Code of Ethics, the situation posed by the issue presented would clearly be a
conflict of interest since there is a possibility of the use of confidential information obtained as a
result of the public position, and the holding of a competing industrial park could certainly interfere
with the proper discharge of the Commissioner's duties to the City.
CONCLUSION
It is likely that the competing land interests between the Commissioner's industrial park and the
City's industrial park would create a conflict of interest for the Commissioner in making decisions
with respect to the City industrial park. Accordingly, the safest course for the City is to follow the
procedures set forth by the statute:
. 1. The Commissioner should prepare a written: statement describing the matter
requiring action or decision and the nature of the potential conflict of interest.
2. The statement should be submitted to the EDA Commissioners.
3. The disclosure should be entered upon the minutes of the EDA at its next meeting.
4. Both the City and the Commissioner may want to consider having the Commissioner
not involved in any negotiations or actions relating to the industrial park.
Additionally, the Commissioner should not attempt to influence anyone relating to
action or decision regarding the industrial park and the Commissioner should not
take part in any action or decision relating to the industrial park.
If you have any questions pertaining to this, please advise.
Sincerely,
RMKoriSfEJRLTD
fi'J
BYj, . [_ .
Tho as G. ffIDOVlCh
TGJ/baw
. cc: Judy Weyrens (via email)
Joanne Foust
Cynthia Smith-Strack
·
23 Birch Street
P.O. Box 634
S1. Joseph, MN 56374
October 13, 2003
Economic Development Administration
City of St. Joseph
25 College A venue North
P.O. Box 668
St. Joseph, MN 56374
RE: Potential Conflict of Interest
To Whom It May Concern:
The purpose of this letter is to formally inform the City as well as members of the Economic
· Development Administration of the City of S1. Joseph that I am an owner of an entity known
as MGJR Development, LLC, a limited liability company' doing business in the State of
. Minnesota. This limited liability company has recently filed a plat regarding the sale of
industrial lots, which plat is located in St. Joseph Township along a street named "Pearl
Drive". Following the completion of the necessary improvements, lots will be sold in this plat
for potential industrial use.
This statement is submitted pursùant to Minn. Stat. §469.009, subd; 1 at the suggestion of
Thomas G. Jovanovich, the City Attorney for the City of S1. Joseph.
Please feel free to contact me if you need additional information regarding this matter.
Sincerely, ? ~. __n _un __ n___ nn___ _. __nn___
~ 0
Michael Deutz
ce: Thomas G. Jovanovich
·
City of S1. Joseph ph: 320-363-7201 St. Joseph
Economic Dev. Authority· fax: 320-363-0342
PO Box 668 Economic
. 81. Joseph, MN 56374
Development
Authority
faesimiletransmittal
Tom lavonovich - Rajkowski,
To: Hqansmeier, Ltd. Fax: 320-251-5896
From: Joanne Foust -Econ. Dev. Consultant Date: 10-29-03· ( ;Çr;.f.-td 1/)
Re: EDA Potential Conflict of Interest Pages 2
cc:
o Urgent· o For Review ¿easeeomment o Please Reply o Please Recycle
. Following is a copy of the letter submitted to the EDA at their last meeting, October 15,
2003, from Mike Deutz, regarding the potential conflict of interest. Would you review this
and let us know if this adequately addresses the situation?
If you have any questions or require additional infonnation, please do not hesitate to call
either the city offices at 320-363-7201 or our MOO office at 952-758-7399 ~r e-mail meat:
staff@municipaldevelopmentgroup.com
On behalfof the City of St Joseph,
~
. Jo! ne Foust
Municipal Development Group, Inc.
.
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