HomeMy WebLinkAbout2000 [03] Mar 16
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~ Unofficial Minutes- EDA Board
· Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met
in special session on Thursday, March 16,2000 at 8:00 a.m. in the St. Joseph City Hall.
Members Present: Chair Kenneth J. Hiemenz. Board Members Mike Deutz, Ross Rieke, Bruce Gohman,
and Ken Twit. EDA Director Chad A. Carlson.
Others Present:
None
Amendment to Purchase Al!reement:
Carlson presented the EDA Board with an amendment to the purchase agreement between the First State
Bank of St. Joseph and the St. Joseph Economic Development Authority. Carlson explained the bond
counsel has informed the EDA that they must have title of the bank building prior to issuing project
revenue bonds for the City Hall project. The original closing date on the property was scheduled for July 1,
2000. Due to the volatility of the economy affecting interest rates, the EDA is being advised to purchase
the bank building and issue the project revenue bonds as soon as possible. The amendment identifies the
closing date as March 17, 2000 with the following terms:
a) Three Hundred Fifty Thousand and 00/100 ($350,000) Dollars in cash, certified check, or by
wire transfer ofD.S. Federal Foods to be received by Title on or before the Closing Date.
b) The balance of One Hoodred Ninety-Five Thousand and 00/1000 ($195,000) Dollars within
45 days of the Closing Date without limiting the fact that the conveyance provided for herein
is a conveyance under the threat of and in lieu of condemnation. The City of St. Joseph
agrees to personally guarantee this payment by the Buyer.
Carlson further stated that within the amendment the bank would continue to maintain possession of the
· building until the new bank facility is constructed and the move is complete.
Deutz questioned where the City of St. Joseph is accessing the money to execute the amendment and is the
EDA going to arrange a lease agreement for the time that the bank will occupy the EDA's building.
Carlson stated that investment funds of the City would be used to execute the purchase agreement. The
investment fund will be reimbursed when the project revenue bonds are issued. The detail of the purchase
agreement does not include a lease arrangement with the bank due to FDIC regulations prohibiting such
arrangement. Carlson further stated that even though we have the title to the facility, we still owe the bank
$195,000 after the closing date.
Twit clarified that the City will be issuing payment in the amooot of $350,000 and the City would
guarantee the remaining balance of $195,000. In the mean time, the bank will continue to operate in the
facility.
Rieke questioned the actual completion date of the new bank building and when the bank could occupy the
facility. Gohman stated that the construction of the facility is on schedule and they are anticipating the
completion date around July 1, 2000.
Twit moved to accept the amendment to the purchase agreement between the First State Bank of St.
Joseph and the St. Joseph Economic Development Authority; Seconded by Rieke.
The motion passed with the following vote:
Ayes: Gohman, Hiemenz, Twit, Deutz and Rieke
Nays: None Motion Carried
· Framers Market Grant Application:
Carlson informed the EDA Board that the St. Joseph Farmers Market would be applying to the Initiative
Foundation for grant funds to assist in the formation and operation of the farmers market. Carlson stated
that the organization can submit the application but can not serve as the fiscal agent since they don't have
501 c3 status or a governmental agency. Carlson is requesting the EDA Board to consider serving as the
fiscal agent for the application.
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c Twit questioned the amount of time the EDA Director would allocate towards the administration of the
grant funds. Carlson informed the EDA Board that the reporting requirements are minimal as long as the
· program requirements of the grant are met by the organization applying for the funds.
Hiemenz stated that the application needs to define the program and EDA needs to ensure the requirements
are being met.
Twit suggested that the EDA be reimbursed for the time spent monitoring the grant funds and submitting
payment requests on behalf of the Farmers Market. Twit suggested that the EDA request five percent (5%)
ofthe award amount be submitted to the EDA for administration purposes.
Twit moved to have the EDA proceed as the fiscal agent for the St. Joseph Farmers Market
application to the Initiative Foundation and that five percent (5%) of the grant award amount be
paid by the applicant to the EDA for administration of the grant funds; Seconded by Rieke.
The motion passed with the following vote:
Ayes: Gohman, Hiemenz, Twit, Deutz and Rieke
Nays: None Motion Carried
Carlson informed the EDA Board that the next EDA meeting scheduled for April 12, 2000 has been
changed to April 13, 2000 to due scheduling conflicts.
Gohman questioned the status of the County Road #133 project. Hiemenz stated that the City Council
approved the Plat and the project will proceed this summer. Hiemenz further stated that a majority of the
ROW has been purchased and is assuming condemnation may have to used in other areas. Twit added that
the City Council also passed a resolution restricting parking along County Road #133 for the duration of
the project.
· The EDA Board discussed the status of prospects for the business and industrial parks. Carlson briefly
updated the status of the projects.
Adiourn:
Twit motioned to adjourn; Seconded by Gohman.
The motion passed with the following vote:
Ayes: Gohman, Hiemenz, Twit, Deutz and Rieke
Nays: None Motion Carried
Chad A. Carlson
Economic Development Director
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