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Home My WebLink About2016 [05] May 18 May 18, 2016 Page 1 of 3 Pursuant to due call and notice thereof, the St. Joseph City Council and St. Joseph Economic Development Authority met in special session on Wednesday May 18, 2016 at 5:00 PM in the St. Joseph City Hall. Members Present: Chair Dale Wick. Board Members Larry Hosch, Gary Osberg, Rick Schultz(arrived at 5:12 PM), Doug Danielson (left at 5:59 PM). EDA Director/Administrator Judy Weyrens Members Absent: None Citv Representatives Present: Community Development Director Therese Haffner Others Present: Jason Arsvold, Ehlers Investment Partners, Brian Kelm> Country Manor, Tom Opatz, Fortitude Senior Living of St. Joseph, Rich Petty, Foxmore HoNow Senior Living Chair Dale Wick called the St. Joseph Economic Development Authority meeting to order at 5:00 PM Public Comments: No one present wished to speak. Aqenda Aparoval: Danielson made a motion to approve the agenda, seconded by Osberg and passed unanimously by those present. Consent Aqenda: Wick made a motion to approve the consent agenda as follows; seconded by Danielson and passed unanimously by those present. a. Minutes-Approved the minutes of April 20, 2016. b. Financial Report-Accepted the April 2016 Financial Reports as presented. Greater St. Cloud Develonment Corporation tGSDC): Patti Gartland, President of GSDC introduced herself and shared that GSDC is celebrating their five year anniversary.They had replaced the St. Cloud Area Development Partnership. Community leaders looked at different economic development organization models and after a visit to Dubuque lowa formed GSDC. Today, there are 112 investors. They have four strategic initiatives with business development being number one. GSDC participates in the Minnesota Trade Office and more recently, the Minnesota Manufacturing Partnership. Gartfand stated participation in the MN Manufacturing Partnership gives a preference rating when applying for grants for federal assistance and gives GSDC significant executive contacts. Gartland discussed GSDC's work with existing businesses and their goal of conducting 75 business, retention and expansion visits annually. Their other strategic initiatives include workplace well-being, transportation, downtown, innovation and talent. Gartland thanked St. Joseph for their participation and hopes the City will continue. Countrv Manor—Tax Abatement:Weyrens provided an update on the Tax Abatement process and shared that Stearns County denied the request to participate in the tax abatement and staff is still working with District 742 for participation. Weyrens stated that the City has some other opportunities to compensate for the lack of participation by Stearns County and can include items such as reduction in some of the fees or extending payment over a couple of years. Weyrens reminded the EDA that Ehlers has been hired as the EDA consultant for the City and part of their process is to prepare a Term Sheet, identifying the project specifics and the maximum amount of assistance available. Jason Aarsvold, Ehlers, approached the EDA to discuss the proposed financing for Country Manor. Arsvold provided an overview of the Term Sheet and background on the request indicating that Country Manor was seeking Tax Abatement to fill a financing gap in the amount of 1.4 million dollars. He stated that based on tax ability of the City and lack of participation by Stearns County, the City does not have the ability to provide assistance in the amount requested. In addition, in reviewing the information provided, the documents do not indicate a gap in that amount; rather the gap is near$ 650,000 and that is feasible for the City to consider. Aarsvold reviewed the Term Sheet with the EDA and stated that he prefers to execute such a document so that everyone is aware of the request and funding. Even though executed by the City and Developer, the document is not binding and does not commit the City, as a public hearing is still required. May 18, 2016 Page 2 of 3 There was discussion on city fees. Osberg questioned how many jobs will be created with the proposed Country Manor Development. Brian Kelm, Country Manor CEO, stated that the exact number is not known, but he anticipated a minimum of 25 FTE jobs will be created. Osberg made a motion to authorize execution of the Term Sheet for Country Manor identifying the project and maximum amount of assistance and term. The motion was seconded by Schultz and passed unanimously by those present. Fortitude Senior Housinq-Tax Increment Financinct(TIF):Weyrens provided an update on the Tax Increment Financing process and shared the Term Sheet for Fortitude Senior Housing development. Fortitude Housing is proposing to construct a 47 unit senior apartment with 20 percent of the units serving low to moderate income. TIF can only be used for housing when 20% of the project serves the low to moderate income. Aarsvold provided an overview of the Term Sheet and stated the initial application for assistance requested TIF over a 25 year period and after review, it was determined that a 14 year term was reasonable. The facility would provide independent housing with services available as needed. The term would be for$526,000 over 14 years and would be pay-as-you go. Weyrens shared that the services provided to the residents in the Fortitude Facility could be extended to the surrounding area. Opatz stated that type of licensure he is required to possess allows him to extend care beyond the walls of his facility; therefore a community benefit. Hosch made a motion to approve the Term Sheet for Fortitude Senior Housing,seconded by Wick and passed unanimously by those present. Foxmore Hollow Senior Livina—Repuest for Tax Abatement-Rich Petty approached the EDA on behalf of the proposed Foxmore Hollow Senior Living Facility. Petty presented the Board with a rendering of the proposed facility that he is proposing to buiid in Graceview Estates adjacent to 4�h Ave SE. The 2002 Graceview Estates Planned Unit Development(PUD) previously approved a senior apartment building on the property. Petty said it would be an age in place facility with 49 units, have climate control tuck under garages and be managed by INH. It would be 100 percent market rate at this point. They would like to be in the ground in mid or late July.Weyrens said the Tax Abatement request requires an application be completed, along with a$15,000 escrow fee due with the application. Hosch said that in looking at the role of the EDA he was skeptical it would meet the tax abatement criteria because it would be market rate. Osberg said the EDA's emphasis has been on creating jobs. Hosch discussed the mission statement of the EDA. There was discussion on Tax Increment Financing. Hosch said he would like more information and that he was skeptical that it would meet the but-for test. Hosch stated that since they are not proposing adding and jobs and it is purely market rate, a future request should be presented to the City Council rather than the EDA. Business Retention Expansion Visit: Weyrens stated the Community Development Director has prepared a schedule for Business Retention Visits. CDD Haffner proposes to visit two business per month and will soliciting two Board Members to participate in the visits. Haffner questioned the Board Members if they had any business they would like to see included on the BRE list. Hosch stated that he could participate if the visits are conducted on Fridays. The Board indicated that once the visits are established a notice should be sent to the members and volunteers can contact Haffner. There was consensus to approve the proposed schedule. EDA Director Reports Lodqinq Tax: Weyrens stated that she was still working through the enabling Ordinance for the Lodging Tax, particularly the definition section. In reviewing the matter with the St. Cloud Visitor Bureau they indicated that some universities and colleges collecting a lodging tax; therefore St. Joseph is not the only community imposing such a tax. Development Uqdates:Weyrens said there was interest in commercial development on County Road 3, Kwik Trip is under construction and the government center is ahead of schedule. There continues to be a May 18, 2016 Page 3 of 3 lot of interest and inquiries to develop within the City. Wick questioned the creation of a marketing video to which Weyrens stated that if the City starts collecting the Lodging Tax, those funds could be used for the creation of a marketing video. Schultz questioned the status of the specialty retail shop near McDonalds and if they have submitted an application for building permit. Weyrens stated that they have not applied for a permit, and she anticipated that will occur in July. Schultz questioned the status of the College of Saint BenedicYs(CSB)athletic facility proposal to which Weyrens stated a meeting has been scheduled for later this week. Adiourn: Schultz made a motion to adjourn at 6:09 PM; seconded by Hosch and passed unanimously, Therese Haffner Community Development Director THIS PAGE INTENTIONALLY LEFT BLANK