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HomeMy WebLinkAbout1997 [12] Dec 17 ~ ........, Pursuant to due call and notice thereof, the Economic Development Authority for the City of St. Joseph met in regular special session on Wednesday, December 17,1997 at 7:30 a.m. in the St. Joseph City Hall. Members Present: Chair Kenneth J. Hiemenz. Board Members Bruce Gohman, Ross Rieke, Michael Deutz. EDA Director Chad Carlson. Recording Secretary Judy Weyrens. Others Present: City Engineer Joe Bettendorf, Ellen Wahlstrom, Leo Buettner. EDA Director Chad Carlson stated the purpose of the meeting was to review alternatives to developing the Industrial Park. Carlson stated that he has met with City Engineer, Joe Bettendorf, to work on design options for the Industrial Park. Bettendorf stated the design includes constructing water and sewer lines only. In an effort to make the project more affordable no street work is configured. If the project moves forward, the surface will be picked up for infrastructure installation and placed back in the same location. Gohman questioned Bettendorf if he has experience in Industrial Park development or has been part of a similar project. Bettendorf responded that he has not completed an Industrial Park Development project, but has worked on phases of one. Carlson stated Board Members need to determine if the lots in the Industrial Park, once improved, are competitively priced. Using the design costs presented at this meeting, and the cost of the land, the lots would have to sell for $34,000. Carlson stated that in comparing that price to area prices we are pricing ourselves out of the market. Bettendorf stated that in his opinion, that for the project to cash flow, the entire design area needs to part of a Tax Increment Financing District with an anchor business established. Carlson discussed with the Board the financial impact if Vic West Steel would relocate and build a new facility. Based on figures he presented, this one project would pay for the design work of the first phase. The Board discussed the impact of realigning County Road 133 and the current status. Bettendorf stated that he has contacted the County Engineer and the project is still scheduled for 1998. However, if this is to happen the City needs to secure additional right-of-way (ROW) and receive affirmation from the Burlington Northern Railroad that another crossing will be granted to St. Joseph. Hiemenz stated that he has been contacting the Railroad and hopes to have a signed agreement shortly. Gohman questioned the status of 12th Avenue and if this extension will be a part of the County Road 133 project. Bettendorf stated that if 12th is extended the City needs to pick up ROW from two property owners. Gohman stated that in his o~inion if 12th Avenue is not part of the project, along with a signal at the intersection of CR 133 and 1 i Avenue, it does not pay to complete the project as traffic conditions will not be improved. The Board discussed with Industrial Park property owner, Leo Buettner, the alternatives of marketing and purchasing his property. Carlson stated the City Attorney has informed him that if the City enters into a contract to purchase the property, the contract can only be extended for five (5) years. Therefore, it appears as this is not a viable option. The Board discussed the four potential lots at the realigned intersection of CR 133. Buettner has previously expressed his desire to develop commercially the lot on the Southeast corner of the proposed realignment of CR 133 and CR 75. Buettner questioned if projected assessment costs are available for this proposed lot. Bettendorf stated that at this time probable assessments are not available. Carlson stated that after the improvements are constructed 21 acres of net land remains for development. Deutz recommended the EDA pay for the cost of the improvements to the property owned by Mr. Buettner. In exchange for the improvements Buettner would then donate all the property to the - City with the exception of the one lot he wishes to develop commercially. Further Buettener should be - December 17,1997 Page I of2 ..". required to construct a building within two years. The Board agreed to consider this as an option when negotiating with Mr. Buettner. Bettendorf summarized the issues the EDA needs to address: ~ Is the City going to participate in the realignment of County Road 133. If so, the County must be notified. ~ An additional RR crossing needs to be secured ~ ROW for County Road 133 and 1 ih Avenue must be secured ~ Vic West needs to be contacted for expansion plans and commitment Carlson stated that he will contact Vic West Steel in an effort to receive a commitment to relocating and expanding their business. After considerable discussion, Deutz made a motion authorizing the following actions: 1. EDA Director Carlson and Chair Hiemenz will begin the process of securing ROW from affected property owners, to include the ROW for the extension of 12th Avenue SE and the realignment of CR 133. 2. The City Engineer, Joe Bettendorf, will meet with the County Engineer to request signal lights be installed at the time of realigning CR 133. 3. EDA Director Carlson and Chair Hiemenz will meet with Leo Buettner to discuss the purchase/development of his property in the Industrial Park. Further, this motion requires that the above actions are to be completed to meet the Stearns County time table for construction of CR 133 in 1998. The motion was seconded by Rieke and passed unanimously by those present. Gohman made a motion that in conjunction with the development of the Industrial Park and the realignment of CR 133, the Economic Development Authority recommends the City Council engage in the development of improvements for the 21 acres of the Industrial Park owned by Leo Buettner to be used for industrial development purposes. The motion was seconded by Deutz and passed unanimously by those present. DTED Conference Report: Carlson reported on a conference he attended sponsored by the Department of Trade and Economic Development (DTED). The conference included discussion on the following: ~ Development policies ~ What Cities can offer developers ~ Sustainable development ~ Revitalization of Downtown areas ~ Renewal districts. Hiemenz discussed the importance of attending a conference when the City prepays registration and hotel expenses, If a member cannot attend the conference an effort should be made to contact other members to fill the vacancy or to contact the sponsoring agency for a possible refund. If the City pays the fee and the registered Board Member does not attend the conference, the City shall be reimbursed any fees paid. Adjourn: Gohman made a motion to adjourn at 10:09 a.m.; seconded by Rieke and passed unanimously by those present. - Judy Weyrens - Recording Secretary Deœmber 17,1997 Page 2 of2