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HomeMy WebLinkAbout1999 [09] Sep 27 . CITY OF ST. JOSEPH 21 First Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-7201 Fax: 363-0342 Ilk DUg ~ MAYOR Kenneth 1. Hiemenz Meeting Notice CLERK! S1. Joseph Economic Development Authority ADMINISTRATOR Rachel Stapleton Monday, September 27, 1999 8:00 a.m. City Hall COUNCILORS Bob Loso ;¡r 8:00a.m. -Call to Order Cory Ehlert .it ;¡r New Business: iedenfuer . Authorize the Purchase Agreement with FirstSta:te Bank of St. Joseph . Review of the Business Subsidy Policy ;¡r 8:45 a.m. Adjourn ¡¡¡J( /' ~ f04-tAJ (.,V. I,L /~~,,~(I - ~ ¡:!A.-e.I-. . UnofficîalMinutes- FDA Board . Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met in special session on Monday, September 27, 1999 at 8:00 a.m. in the 81. Joseph City Hall. Members Present: Chair Kenneth J, Hiemenz. Board Members Ken Twit, Bruce Gohman and Ross Rieke. EDA Director Chad A. Carlson. Absent: Mike Deutz. New Business: Purchase Agreement with First State Bank of St Joseph: Carlson presented a purchase agreement for the acquisition of First State Bank of S1. Joseph for administration offices. The EDA will finance the facility for the City of St. Joseph. Carlson stated that the purchase price would be $545,000. Twit questioned if the $545,OOOinéludes furnishings as selected by the City. Carlson stated that the City Administrator has received a list of furnishings ITom the President of the bank and that the purchase price does included the furnishings as identified on the list, Twit further stated the City of S1. Joseph and administration staff should be very pleased with the high quality of the furnishings the bank has included with the purchase of the facility, HÎemenz stated that the inventory of furniture should be included as an exhibit to the purchase agreement. HÎemenz requested that Carlson contact the City Administrator to make sure the purchase agreement is complete and all exhibits are included. Hiemenz questioned the fact that a closing date was not included in the agreement. Hiemenz recalled a May 2000 closing date being discussed during the negotiations. Carlson stated that the owners of the facility eliminated a specific closing date ITom the purchase agreement due to the timing of construction for the new facility and other contractual agreements. . Gohman stated that the new facility is scheduled for completion on June 10, 2000 and the purchase agreement states that closing will occur prior to September 1,2000 as defined in Section 4 ofthe agreement. Twit moved to accept and execute the purchase agreement between the St. Joseph Economic Development Authority and First State Bank of St. Joseph for the purchase of real property. Seconded by Gohm~m; Ayes: Hiemenz, Twit and Gohman Nays: None Motion Carried Business Subsidy Policy: Carlson presented a draft business subsidy policy to the EDA Board. A business subsidy policy is required by Minnesota State Statute 116J.993 to 1 16J.995 for all municipalities providing businesses with subsidies after August: 1, 1999. The Statute also states that the local governing body must adopt the policy. The law was passed to control communities and organizations that have power to award business subsidies and put the control into the hands of elected officials. Specifically organizations that have revolving loan funds or other types of financial assistance, Gohman questioned the origination of the draft policy and the fact the policy is very vague. Carlson stated the language for the policy was supplied by the League of Minnesota Cites and the community of Sartell. The language indicates the flexibility of the law and the amount of discretion each community can exercise with any given project involving a business subsidy. Carlson further stated that a separate business subsidy agreement would be entered into with each project involving any sort of subsidy. Gohman moved to recommend the City Council adopt the business subsidy policy as presented. Seconded by Twit; . Discussion: Twit questioned if a ptililic hearing has been schedúled for ihe City Council. Twit stated that the City Council could conduct the public hearing during a regular City Council meeting to avoid hold a special meeting. Hiemenz stated that the issue is not controversial and shouldn't take a large allotment of time during a regular City Council meeting. Carlson stated that he will coordinate the public hearing with the Ci(y Administrator. , Ayes: Hiemenz, Twit and Gohman Nays: None Motion Carried Ross Rièke arrived at 8:20 a.m. Architectural Contract: Carlson presented the architectural contract between the S1. Joseph Economic Development Authority and Grooter Leapadlt Tideman Architects. The contract defmes that activities the firm will conduct for the remodeling of the new administration and police department facilities. Gohman stated that the fees identified in Exhibit E and Exhibit F seem to be costly for the St. Cloud area. Gohman specifically sited the technical and clerical hourly rate, copy costs, and blueprint fees. Twit qu~tiQnçd ifth~ prQPQ~(fq çQntrl,l<,t i~ ~ú.mqarq anq ifQhIeprint~ ar(f ~ h . , L? t/IL 'Ii; /lt~1} ~ Gohman stated that the proposçd contract is a standard contract and bl , e prints will be necessary for the contractors. Carlson statçd his concern with having an open contract based on hourly rates and if the EDA should be considering a cap for expenditures. Twit expressed his concern with the fee schedule and the fact the contract is opened ended. Hiemenz stated that during the interview the architect stated that it would be hard to put a firm number down at this point since the City hasn't decided on the amount of remodeling that needs to be completed. Gohman stated that initial architectural contracts tend to be open ended until the project is defmed. Twit stated that the fees could be negotiated at tills pomt smce a contract has not been signed. . Hiemenz sited Section 1.3.9.4 of the contract which states the Architect may adjust the hourly rates on a periodic basis with 30 day notice to the owner. Hiemenz stated that a month into the project the fee schedule could increase. Hiemenz requested Carlson to compare the proposed fee schedule to other architectural firms that were interviewed. HÏemenz stated that the fees don't appear to be out ofline and contacting other firms may reinforce the fees provided by Grooter Leapadlt Tideman Architects. Ri(fke sugge~tçd that Çarl~Qn r(fview the arçhitect f~~ a~~Qçiatçd with th(f ÇQn~tructiQn Qfth~ n~w fir~ hall. Twit reiterated that a contract has not been signed with Grooter Leapadlt Tideman Architects and the EDA is not obligated to use the firm for this project. Carlson stated that a confirmation letter has been sent to Grooter Leapadlt Tideman Architects by the city of St. Joseph stating they had been selected as the architectural firm for the project. Twit made a motion to table the approval of the architectural contract between the St. Joseph Economic Development Authority and Grooter Leapadlt Tideman Architects until the October EDA Board meeting and pursuant to the EDA Director completing an analysis of the proposed fee schedule. Seconded by Gohman; Ayes: Hiemenz, Twit, Gohman and Rieke Nays; None MQtiQn Carri~d Adjourn: The meeting was adjourned by consensus at 8:40 a.m. . ~~ ------------ Economic Development Director