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HomeMy WebLinkAbout1999 [09] Sep 08 . ~ CITY OF ST. JOSEPH 21 First Avenue NW '.0. Box 668, ,1. Joseph. MN 56374 )20) 363-7201 Fax: 363-0342 Ilk Meeting Notice ~~ MAYOR St. Joseph Economic Development Authority Kenneth J. Hiemenz Wednesday, September 8, 1999 8:00 a.m. City Hall CLERK! ADMINISTRATOR 8:00 a.m. Approval of Minutes Rachel Stapleton ~ July 22, 1999 COUNCILORS 8:05 a.m. Old Business - Director Bob Loso Whlert ~ Discussion on Business Park Project It MæyNiedenfuer 1) Construction Schedule 2) County Road #133 Update ~ EDA Activity Report (enclosure) ~ Retention Visits Scheduled t¡...¿ t'- ~\, 1) 51 ~Ø>"- J Sunset Manufacturing, Inc - September 21 9:00 A.M. .; Rc .';) 2) Accuserve, Inc - September 21st 1:00 P.M. - cs.~_ 3) DBL Labs - Date and Time Pending -- (.b1'L~EÓ= 8:45a.m. New Business > St. Cloud Area Profile 1999-2000 ~ 1999-2000 Minnesota Business Subsidy Law (enclosure) . · Uno.f.lù:ial Mìnutes~ EDA Board Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met in regular session on Wednesday, September g, 1999 at 8:00 a.m. in the St. Joseph City Hall. Members Present: Chair Kenneth J. Hiemenz. Board Members Ken Twit, Mike Deutz and Bruce Gohman. EDA Director Chad A. Carlson. Absent: Ross Rieke. Others Present: Cari Schmidt, City Administrator, Ellen Wahlstrom Approve Minutes: Twit made a motion to approve the July 22, 1999 minutes as presented; Seconded by Gohman and passed with the following vote: Ayes: Chair Hiemenz, Twit and Deutz Nays: None Abstain:Q<;Ihman Business Park Update: Carlson presented a letter &om SEHlRCM summarizing the development of the Joseph Street and Business Park utility construction projects. Carlson informed the EDA Board of the locations of the utilities to be constructed. Carlson stated that the contractor; S.J. Louis, will be starting construction this Thursday or Friday. During the pre-construction conference, issues surfaced regarding the completion date and the number of crews the contractor will have on site. Mr. Bettendorf, City Engineer, will be addressing these issues. Deutz questioned if the base bid included the Joseph Street project. Carlson stated that the base bid includes all the utility work associated with the Business Park and Joseph Street. Alternate D is a separate · project that will be completed if agreements can be executed with the property owners. Deutz questioned if the $200,000 commitment to the Joseph Street project from the City of St. Joseph is still firm or has it been reduced because the cost of the overall project has decreased. Twit stated that the City has committed the $200,000, which will reduce the cost ofthe project for the property owners and created a win-win situation for all involved with the project. EDA Project List: Carlson presented the January to September 1999 project list to the EDA Board. Twit questioned the definition between "active" and "monitoring". Carlson stated the difference is in the amount of contact he has on a monthly basis with the project. Active meaning that contact is frequent during the month, while monitoring indicates very little contact has been made since the initial contact. However, the project still exists and has potential to occur in the City. Twit requested a clarification on the additional job column and asked if the Bank would be hiring 14 additional employees. Carlson stated an error on the project list was made and the number represents their current employment figure. Retention Visits: Carlson requested volunteers for the following retention visits: Sunset Manufacturing, Inc. - September 21 st 9:00 a.m. - Hiemenz and Deutz Accuserve, Inc. - September 21st 1:00 p.m. - Rieke DBL Labs - date and time are pending - Gohman New Business: St. Cloud Area Profile: · Carlson presented the 1999'-200(f S1. Cloud Area Profile prepared by St. Cloud State University and St. Cloud Area Economic Development Partnership. Carlson.informed the EDA Board that this profile will not be updated until the new census data is available to avoid duplication in the reports. . Carlson further stated that he is disappointed in the fact St. Joseph is not listed as a separate cOImmmity within the Profile. Currently, S1. Joseph is included in Stearns County's figures. Carlson will work with the 8t. Cloud Economic Development Pminership to ensure further study identify 8t. Joseph in the area data and tables. Twit discussed the large percentage increase in the usage of the St. Cloud Airport. HÍemenz stated that St. Cloud Airport is doing extremely well and they are in the process of completing a 20-year expansion plan for the facility. Gohman stated that rider ship has increased and created a parking problem at the Airport. Gohman stated that there are plans to construct additional parking areas at the facility. MN Business Subsidy Act: Carlson reported on the new Minnesota Subsidy Act. Carlson stated the law has many potential impacts on completing projects and the function of the EDA as entity of the City of St. Joseph. Carlson discussed the 8 elements of the stJbsiqy agr~~ that mIJ~ ~ c;omplet~ fQ1' ~çh prQj~ r~iving fm~çial a~i~~ce from the community. However, the section of the law that states municipal governments must approve all subsidy agreements after a public hearing may have a negative impact on the EDA when they construct deals and subsidy arrangements. Basically, the law takes the power of the EDA and gives it to the mlll1icipal government. Gohman stated that the EDA shouldn't dictate job and wage goals since market factors playa major role in determining them. A wage and job policy will not be beneficial and may be deter economic development to competing towns. Carlson stated that the Quad County Committee will be meeting on Thursday, August 9, 1999 to discuss . and get clarification to the subsidy law. Carlson will report back to the EDA at their next meeting. HÍemenz added that the law puts the EDA into an advisory role to the COlll1cil, eliminating certain authorities of the EDA. City Hall Project: Carlson discussed the progress. on the bank building and City Hall project. Prior to the discussion, Gohman stated for the record that he will abstain from any discussion or vote regarding the development of the First State of St. Joseph. Carlson stated that Jolm Scherer is in the process of developing a purchase agreement between the EDA and First State Bank of St. Joseph for the purchase of the facility. Due to the critical timing of the project and delay in the execution of a purchase agreement, Carlson suggested the EDA Board consider the use of Eminent Domain to obtain the facility for new administration offices. HÍemenz stated that the City is also interested in executing the purchase of the facility, but do to timing and contract issues with the bank constructing a new facility, the threat of eminent domain may assist in the execution of all agreements. Twit stated that it is to the advantage of the EDA to get the prcqect rolling and completed in a timely fashion. Twit questioned if the City Attorney has been consulted. Carlson informed the EDA Board that the City Attorney is aware of the EDA's concern and is comfortable with the process. Deutz stated he was not aware that the City Council requested the EDA purchase the facility. HÍemenz stated it has been discussed that the City Council at prior meetings as the best option for the City to obtain the building. Deutz suggested that the EDA Board review the terms and price of the purchase agreement and make official motion at the next board meeting to execute the agreement. . Deutz made a motion to issue a letter to First State Bank of St. Joseph stating the EDA is considering the use of Eminent Domain to acquire the First State Bank of St. Joseph for a municipal facility, pursuant to the City Council decision to authorize the EDA as the purchasing agent ofthe facility. · The motion was seconded by Twit and approve with the following vote: Ayes: Chair Hiemenz, Twit and Deutz Nays: None Abstain: Gohman Motion Carried Public Comments: Ellen Wahlstrom stated her opinion regarding the public perception of the St. Jöseph Economic Development Authority. Wahlstrom stated that the EDA meetings should be broadcast to the public to avoid the perception of secrecy surrounding the EDA's activities. Wahlstrom specifically sited the EDA confidential pr~ect list. Wahlstrom further stated that in her opinion the public is an enemy of the EDA and they should be partners. The EDA is not willing to work with the residents of St. Joseph and strictly focus on business and industrial development at the expense of the City. Twit stated that the sole function of the EOA Board is for the advancement of commercial and industrial expansion and development in the community. However, other City Ordinances and development regulations work hand in hand with the EDA. Public comments and input are always welcome. Gohman stated that the confidential project list needs to stay confidential and only available to the Board Members due to the information contained on the list regarding each project. Carlson stated that each company researching locations in St Joseph specifically request that the information be kept confidential. · The EOA is not in the position to make the information public due to the risk of losing the prospect. Wahlstrom stated that the public needs to aware of potential business to express their support or disapproval of a company wishing to locate in the community. Wahlstrom sited the proposed bulk natural gas facility as an example where public input put a stop to a bad project Hiemenz stated that the City and EOA has created criteria that businesses. must meet. The EDA is responsible for protecting the interest of the community as companies approach the City for building sites. Once a commitment ITom the company has been made, the public process of permitting is done. Wahlstrom stated that she believes the intention of the EDA is good, but the public has a different opinion. Adjourn: The meeting was adjourned by consensus at 9:15 a.m. &«~ Economic Development Director ·