HomeMy WebLinkAbout2018 [09] Sep 18 September 18, 2018
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Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority met on
Tuesday, September 18, 2018 at 5:00 PM in the St. Joseph Government Center.
Members Present: Chair Dale Wick, Board Members Doug Danielson, Larry Hosch, Gary Osberg, Rick
Schultz, EDA Director/Administrator Judy Weyrens
City Representatives Present: Community Development Director Therese Haffner, City Engineer Randy
Sabart
Others Present: Tanya Pierson, Joe Walz, Kevin Cox, Cory Ehlert, Steve Gohman
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.
Agenda Approval: Schultz made a motion to approve the agenda,seconded by Wick and passed
unanimously by those present.
Consent Aqenda: Danielson made a motion to approve the consent agenda as follows; seconded
by Schultz and passed unanimously by those present.
a. Minutes-Approved the minutes of July 17, 2018.
b. August Financial Report-Accepted the August 2018 Financial Report as
presented.
Hotel Studv: Weyrens introduced Tanya Pierson with HVS who completed phase one of the hotel study.
Pierson presented an overview of the study, including who they engaged, evaluation of existing hotels,
identifying demand generators, and reviewing leisure, corporate, and university demand. Pierson
reported that the occupancy rate is 60% in the area, while the national average is 65°/a. Corporate and
leisure travel was discussed. There are currently two new hotels with 200 rooms under construction in
Waite Park and Pierson said the findings are that currently there is not enough business to support a
hotel in St. Joseph. Weyrens questioned whether a couple of larger new businesses would make a
difference. Pierson responded that it would depend on the type of businesses and whether they do more
training. Danielson questioned the impact of St. John's University and the College of St. Bens. Pierson
reported that they actually drive down demand. Hosch discussed Nahan Printing's usage of hotel rooms.
A phase two study could be completed to look at further, including studying projections. Osberg said there
has been a significant amount of work completed already and does not support a phase two. Weyrens
said she shared the study with the interested hotel developer. Osberg said he believes a small hotel by V-
94 would make it. Pierson indicated that brand was really important, along with a restaurant. Osberg
questioned the brands. Pierson mentioned Hilton, Holiday Inn and Hampton as examples. Osberg made
a motion to put further study of the hotel on hold; seconded by Wick. Upon vote being taken the
foflowing voted:
Aye: Danielson, Hosch, Osberg,Wick Motion Carried: 4:1
Nay: Schultz
Schultz said there is a niche market in St. Joseph and the goal is to rebuild the downtown. Rebuilding the
downtown means new businesses, such as a hotel. There was a discussion on reviewing in the future.
Pierson shared that phase one of the study would need to be re-evaluated after six months.
EDA Director Reports
Industrial Park Update: Weyrens reported that city engineer Randy Sabart would present and referenced
site layout exhibits in the packet. Weyrens discussed an existing Great River Energy electrical easement
along the back of the lots in the existing industrial park abutting the new industrial park. Weyrens has
been in contact with Great River Energy regarding vacating the easement since the electrical utility is
inactive. Weyrens requested Hosch contact Great River Energy to assist with moving forward with
September 18, 2018
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releasing the easement since efforts have been unsuccessful so far. Release of the easement would
allow existing businesses the option of expanding. Hosch said he would foliow-up with Tom Lambrecht of
Great River Energy.
Sabart presented the site layout with the lot configurations and streets that was submitted to MN DEED
for the grant application. Sabart discussed the 2.75 acre parcei owned by Gohman that abuts County
Road 133 that is needed for right of way for the north corridor. Sabart said he was hesitant to prepare the
plat with not knowing the final roadway layout of the north corridor. Developer Kevin Cox said the planned
north corridor has been important to the city and he supports the corridor. He stressed that it was
`important to do it right. Wick questioned the request. Sabart said this was meant as an update but
requested direction on securing the right of way and preparing the plat. The timeline for platting and the
BID process is short for a spring construction. Danielson questioned if this was in reference to eminent
domain. Weyrens said yes. Cox shared that he has met with property owners Steve and Jerry Gohman
and has made them an offer to purchase the property but they have been unable to come to an
agreement on the price. There was discussion on the north corridor study and preferred alignment.
Sabart clarified that the layout presented was the chosen preferred alignment. Weyrens requested
direction on preparation of the plat. Hosch said the corridor was a logical flow for transport. Schultz
commented on the need for the corridor to connect to the east and questioned the timeline. Sabart
responded that engineering and platting would take about five to six week with a potential
January/February BID. Wick clarified that the next step would be eminent domain while continuing with
negotiations with the property owner. Sabart clarified that 2.75 acres would need to be acquired for right
of way but there was also the irrigation system issue. Steve Gohman discussed the irrigation system.
Sabart reported that they had a third party review whether the existing irrigation system could be
adjusted. Modification of the irrigation system would be problematic. Hosch said the preferred route for
the north corridor should be maintained. Consensus was to proceed with the public process of eminent
domain while continuing negotiations with the property owner and for city engineering to proceed with plat
preparation.
Development Uqdates:
• Weyrens reported that the City Council approved the Environmental Assessment Worksheet for
publication for a proposed development west of CR 2 near I-94. Staff met with MN DEED,
Stearns Electric Association, Great River Energy, and the City's TIF consultant related to
potential financial assistance.
Board Member Announcements:
• Schultz requested Weyrens identify TIF Districts and results.Wick said this information could
determine if it is working.
• Osberg questioned grass parking and whether vehicles were required to have a current licensed.
• Schultz shared that St. Joseph fared well for the Best of Central Minnesota. Schultz commented
that we have good assets that we don't market well. Schultz discussed the CVB, and the need to
do a better job marketing.
AdJourn: Hosch made a motion to adjourn at 6:18 PM; seconded by Danielson and passed
unanimously.
Therese Haffner
Community Development Director