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HomeMy WebLinkAbout2000 [06] Jun 14 . CITY OF ST. JOSEPH 21 First Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-720 I Fax: 363-0342 Ilk Meeting Notice St. Joseph Economic Development Authority MAYOR Wednesday, June 14, 2000 8:00 a.m. Kenneth J. Hiemenz City Hall CLERK! ADMINISTRATOR ~ 8:00 a.m. Call to Order Cari Schmidt ~ New Business: COUNCILORS · Mark Hemann - Development Presentation Bob Loso Cory Ehlert ~ Other Items: .it iedenfuer · Approval of Minutes . April 13, 2000 . May 11, 2000 · EDA Board Approval - EDAM Conference · CR #133 Construction Time Line · 2000 Legislative Update - Economic Development (handout) · Project Summary Report ~ Public Comment to the Agenda ~ Adjourn . , BDU~ . CITY OF ST. JOSEPH 21 First Avenue NW P.O. Box 668, S1. Joseph, MN 56374 (320) 363-720 I Fax: 363-0342 . Meeting Notice St. Joseph Economic Development Authority MAYOR Wednesday, June 14, 2000 8:00 a.m. Kenneth J. Hiemenz City Hall CLERK! ADMINISTRATOR ~ 8:00 a.m. Call to Order Cari Schmidt ~ New Business: COUNCILORS · Mark Hemann - Development Presentation Bob Loso ~Iert ~ Other Items: It Mary Niedenfuer · Approval of Minutes . April 13, 2000 ~~/ . May 11, 2000 jJ1 · EDA Board Approval - EDAM Conference · CR #133 Construction Time Line · 2000 Legislative Update - Economic Development (handout) · Project Summary Report ~ Public Comment to the Agenda ~ Adjourn . ~, Unofficial Minutes- 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, June 14,2000 at 8:00 a.m. in the St. Joseph City Hall. Members Present: Chair Kenneth J. Hiemenz. Board Members Mike Deutz, Ross Rieke, and Bruce Gohman. EDA Director Chad A. Carlson. Others Present: Mark Hemann, Platinum Marketing Group Mark Hemann - Platinum Marketine: Group: Mark Hemann introduced himself as one of the lead developers in a golf course/residential development south of the Township Hall. the property is under control by the developers via signed purchase agreements. Preliminary plans are being completed, which include a mix use of residential development. The residential development will consist of apartments, town homes, starter homes and up scale living. The development partners are currently discussing the golf course ownership with some local investors. The golf course will be privately owned. Hemann indicated that annexation and the availability of city services is critical to the completion of the development. Hemann stated that the project has many potential benefits to the community such as increased traffic counts, affordable living, and the golf course will put St. Joseph on the map. Rieke questioned if Mr. Hemann would share a bit about his background in property development. Hemann stated that he has over 15 years of experience in the real estate development field with commercial and golf course development. His partners have extensive experience in residential development in central Minnesota. . Rieke questioned the amount of property in holding for the project. Hemann stated that the development consists of approximately 325 acres. A surveyor has been hired to confinn the amount of property purchased ITom the Hiem and Bechtold families. The golf course will require anywhere ITom 150-200 acres and the remaining will be developed as residential. The architect will be incorporating the natural terrain and features into both sides ofthe development, including the Sauk River. Gohman questioned how many housing units will be included in the development. Hemann stated that the specific amount of units are yet to be detennined. However, they are devoting 120 acres to single family homes, 15 acres to town homes, and 8 acres to apartments. Once an engineering finn is retained, they will detennine the amount of housing units that are needed to make the project financially feasible. Gohman questioned Hemann's experience in golf course development. Hemann stated that his experience is with course development in the Southern California and the San Diego area. Gohman introduced himself as the owner and developer of Eagle Trace Golfer Club in Clearwater. Gohman cautioned Hemann regarding the development of another golf course in the St. Cloud area. There are currently 5 courses under development in an already saturate market. Gohman further stated that in order for the development to occur, 200 or more acres must be available to residential development. Gohman further cautioned Hemann regarding current golf course studies that are being completed throughout the state and their validity. . Deutz stated that the St. Cloud Area is missing a championship course design and an upscale golfing experience. The golf course proposed by Hemann will provide this to the St. Cloud Area. Deutz further stated that the City completed a housing study last year and the study indicated that the City was lacking in every category of housing. This development should fit the needs identified in the study. ~ Rieke stated that the City of St. Joseph should and is in the position to embrace any business that wishes to locate in the S1. Joseph area. Rieke further stated that the EDA will provide any assistance needed to . promote the completion of this project and Rieke welcomed the developer to town. Hiemenz questioned the timing of construction for the residential units proposed with the development. Hemann stated that his partners would like to begin construction on the residential units within 12 to 14 months. The construction will be contingent upon the reconstruction of County Road #121 and the extension of municipal services to the area. The first phase of construction would begin across &om the township hall and will consist oftown homes. However, single family and apartments could be constructed at the same time. Deutz stated that the golf course will be a major economic boost for downtown S1. Joseph. The amount of traffic on College Avenue and Minnesota Street will increase dramatically. The businesses will see a benefit. Hemenn added that he has contacted the colleges regarding their role in the development and operation of the golf course. Each college did not commit to a major leadership role in the development of operation. Hemann stated that the City will benefit &om alumni and their families returning to the area to enjoy the course, not to mention the college scheduled events that bring people and staff into the community. Hemann concluded by stating that St. Joseph is the ideal location for this development due to the natural features of the land, small town atmosphere, and development patterns and constraints of the area. Approval of Minutes: Gohman moved to approve the April 13, 2000 EDA Board minutes with the following correction: I) remove Deutz from the motion to adjourn after the EDA Board met with Greg Reinhart at the First State Bank of St. Joseph. Seconded by Deutz. . The motion was approve by the following vote: Ayes: Gohman, Deutz, Hiemenz, and Rieke Nays: None Motion Carried Deutz moved to approve the May 11, 2000 EDA Board minutes as presented; Seconded by Rieke. Discussion: Deutz reminded the EDA Board that the bond amount for the City Hall Complex is $960,000. Deutz further stated that GL T Architects stated at the last City Council meeting items were missed in the original estimate and questioned if the budget had enough room to add additional expenses. Carlson stated that at the last building committee meeting, after the City Council meeting, that the project is still under budget. The building committee also eliminated and added items to the project as alternates for the bidder. The motion was approve by the following vote: Ayes: Gohman, Deutz, Hiemenz, and Rieke Nays: None Motion Carried EDAM Conference Registration and Lodging: Rieke moved to approve Carlson, EDA Director, to attend the EDAM Conference June 28-30tb; Seconded by Gohman. . The motion was approve by the following vote: Ayes: Gohman, Deutz, Hiemenz, and Rieke Nays: None Motion Carried . þ.. County Road #133: Carlson infonned the EDA Board that Stearns County has advertised for bids on the project and the bid . letting will be June 28th. Hiemenz stated that he was infonned by Mitch Anderson, Stearns County Engineer, that MNDOT made an error and the bid letting is now scheduled for July 6th. Carlson suggested that once the bid letting is complete and we know the name ofthe contractor selected, the EDA Board and staff should lobby to have the project begin in St. Joseph. Gohman stated that the bidders list should be available prior to the bid letting. Gohman suggested that an infonnation letter be sent to all the bidders letting them know the importance of starting in St. Joseph, not to mention that we're ready. Rieke added that Joe Bettendorf, City Engineer, draft a letter to assist in the process. Hiemenz stated that Sartell has to address traffic control issues much larger then St. Joseph, which may work to our favor. The contractor may have a large enough crew to start on both ends if needed. Gohman stated that starting the project in St. Joseph and Sartell at the same time would create additional traffic problems that the County should consider. County Road #133 is the primary route for citizens of St. Joseph to get to work in Sartell and north and West St. Cloud. Carlson stated that he will follow up on the bidders list and get in contact with the EDA Board members regarding the progress of the project. 2000 Leeislative Updates: Carlson stated that he attended the Economic Development Committee meeting held by the Coalition of Greater Minnesota Cities to discussed the changes made by State Legislators at the 2000 Session in economic development. Carlson highlighted the more significant changes: . 1) Elimination of the 11/9 rule regarding the duration of a TIF District. The current law now states that increment can be collect no longer the 8 years after the first receipt of increment in an economic development district. 2) Extension of the public notice requirements and school and county notifications 3) The following items were changed in the Business Subsidy Law: a) Included increase tax base as a public benefit b) Subsidy providers must create a wage floor or fonnula within the agreement c) Subsidy agreement must have measurable, specific and tangible goals. d) The grantor can deviate ftom the goals set in the policy e) The grantor has until 2003 to make the necessary amendments to the policy. 2000 Prospect List: Carlson detailed the projects on the prospect list. The EDA Board suggested creating another category on the spreadsheet detailing those projects that have started construction and require follow up or assistance ftom the EDA Office. Carlson infonned the EDA Board that the changes will be made prior to the next meeting. Announcements: Deutz requested Hiemenz give an update regarding the public infonnational meeting for the County Road #121 project. Hiemenz stated the proposal was presented to the residents in the proposed annexation area. Many residents have changed their "no" vote to a ''yes'' vote. The proposal will bring water and sewer lines down as far as the Township Hall. Most of the residents in the "Hilltop" area are opposed to the project with is ironic since they are the ones with the failing septic systems. Hiemenz anticipated that vote was currently 50/50. . Deutz suggested that the City Council redefine the project and annexation area to provide to those requesting municipal service. The people on 295th would then connect to the system at a later date and much higher cost. ~ Hiemenz stated that the City would need to reassess the project and area to be annexed. The biggest obstacle for the City is the carry cost of approximately $700,000 which doesn't include the lift station and . the large amount oftax exempt land in the project area. In order to make the project work for those requesting services, the annexation boundary will have to redrawn. Deutz questioned if the annexation would have put to City over 5,000 in population. Hiemenz stated that the State Demographers Office had the City 200+ short of 5,000 in population. Cari is working with the State Demographers Office to work on the figure. Adiourn: Deutz moved to adjourn at 9:05 a.m.; Seconded by Rieke The motion was approve by the following vote: Ayes: Gohman, Deutz, Hiemenz, and Rieke Nays: None Motion Carried Chad A. Carlson Economic Development Director . .