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HomeMy WebLinkAbout[04a] minutes April 16, 2019 Page 1 of 3 Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority met on Tuesday, April 16, 2019 at 6:00 PM in the St. Joseph Government Center. Members Present: Board Members Rick Schultz, Doug Danielson, Troy Goracke, Larry Hosch, Dale Wick, EDA Director/Administrator Judy Weyrens Members Absent: City Representatives Present: Community Development Director Therese Haffner, City Engineer Randy Sabart Others Present: Mary Bruno Public Comments: No one present wished to speak. Agenda Approval: Wick made a motion to approve the agenda, seconded by Goracke and passed unanimously. Consent Agenda: Danielson made a motion to approve the consent agenda as follows; seconded by Wick and passed unanimously. a. Minutes-Approved the minutes of February 19, 2019. b. March Financial Report-Accepted the March 2019 Financial Report as presented. St. Joseph CVB—update on activities: Mary Bruno approached the Board on behalf the St. Joseph CVB. She stated the group has been working on establishing the ST. Joseph CVB and they created the following mission: St. Joseph is a safe, friendly,family-oriented small town with outdoor recreation, a thriving art scene, good foot&dring with a progressive stance on supporting small, independent businesses. Bruno then presented the board with a logo with the slogan, "Small town warmth, big city cool." Schultz stated the group has been meeting for the past 6 months and are asking for funding to continue to work on the marketing and outreach efforts. Bruno added she is looking for feedback and direction on the logo and whether the board would like the CVB to continue in this direction. Danielson questioned whether Joetown had already been trademarked by the Church of St. Joseph. Weyrens stated the Church does have Joetown Rocks trademarked, but not just Joetown. There will be a fee associated with getting the logo trademarked, but it is not known at this time. Schultz stated the request is for up to$2,000 to have the logo trademarked and to expand the marketing and outreach in the area. Wick questioned whether the logo was presented to other people in the city for feedback.Wick was unsure if the logo would make people think of St. Joseph, Minnesota. Hosch stated the CVB is working on a brand for the City and he likes the logo and its design. Hosch added he likes the CVB and their mission in making St. Joseph visible. Schultz moved to approve spending up to$2,000 to trademark the logo and continue marketing efforts.The motion was seconded by Wick and passed unanimously. Proposed Affordable Housing Proiect—Utilization of Tax Incentives: The EDA met jointly with the City Council on March 18, 2019 to discuss a potential affordable housing project proposed by Sand Properties. The project would require assistance from the City in order to be competitive in the selection process. Sand Properties has indicated the contribution would need to be approximately$500,000. The proposed property is on the forfeiture list and could be purchased for$25,000; however, the land is valued much higher, in the$200,000+range. The City could use the difference between the value of the property and the purchase price as a contribution. The City would have a contribution of$200,000, leaving a gap of$300,000. The Assessor's Office has provided projected numbers on what the taxes April 16, 2019 Page 2 of 3 might be based on what was provided by Sand Properties. The City is not approving a site plan, rather deciding if TIF and/or Tax Abatement would be an option for this project. Weyrens stated Northland Securities put together scenarios if TIF and/or Tax Abatement were approved for the project and how long it would take to payoff.Weyrens added that with TIF, the City, County, and School District are required to participate. In contrast, Tax Abatement is discretionary for the County and School to participate. Weyrens further stated that the City has the ability to create a TIF in a variety of options. For example, the City could decide that the TIF would only reimburse 75%of the taxes rather than the standard 90%. This way the City would still realize a gain in tax revenue. The TIF could also be created for the maximum term of 25 years and the TIF not needed for the proposed project could be utilized on other affordable housing projects to include rehab of homes. City Engineer Randy Sabart stated that any proposals received that propose the expansion of 20th Ave would require the City to look at utility extension as well. Wick questioned whether the road could be constructed without putting utilities in. Sabart responded that it depends on what type of road the City is intending 20th Avenue to be. Looking at the Transportation Plan, 20th Avenue is slated for a minor arterial road with the utilities going under the road as opposed to the ditch. Wick expressed concern that residents of the new development would use Jefferson LN, a private street, as their main way in and out of the development if the connection is not made to 20th Avenue. Weyrens stated there would be a large cost to the City if 20th Avenue were to be constructed because it is undeveloped. A large sum would be a deferred assessment, the road construction costs would be bared by the City, and putting in utilities would be an additional expense when the City is unsure of how those utilities will be utilized in the future. Hosch stated he read the minutes regarding the need for this type of housing in the County, but questioned if they would they support Tax Abatement. Megan Sand-Carr representing Sand stated that the City of St. Joseph cannot utilize project based assistance vouchers because the poverty level is above 20%. Sand Companies is trying to secure vouchers from the County as well as State funding. They would still like to move forward with the project, just in a slightly different way. HUD does not want to concentrate poverty in one area. Hosch stated the poverty level is greatly affected by the number of students declaring St. Joseph as their place of residence while residing in St. Joseph. Sand-Carr questioned if the entire amount of TIF were not used on the building, could it be used on the construction of the road. Weyrens stated that she would look into that as the expenses would need to go to serve the low to moderate income. For this project, the City or County would need to purchase the property.The County has agreed to sell it for$25,000 and the City would need to enter into a purchase agreement dependent upon the grant being awarded. Wick questioned whether the recommendation of constructing 20th Avenue would be any different if the apartments were market rate versus low to moderate income housing. Sabart responded that the type of housing does not warrant whether a road is to be constructed or not. Sabart added that there is flexibility on the layout of roads being constructed and staff and the Council will need to look at what makes the most sense both now and for the future. Wick questioned staff as to their recommendation. Weyrens stated that if the Board believes that providing affordable housing is a regional issue, then the use of TIF is appropriate as both the school and county would be required to participate. If the Board believes that providing affordable housing is a local issue then Tax Abatement would be appropriate. Hosch stated he is in favor of TIF versus Tax Abatement. Hosch added it is a regional benefit and a regional responsibility. TIF is the best way to assure that the City, County, and School all participate. April 16, 2019 Page 3 of 3 Hosch made a motion recommending the City Council approve a twenty-six year Tax Increment Financing Distric allowing for the expansion of the district to allow for additional utilization for affordable housing projects.The motion was seconded by Goracke and passed unanimously. Wick made a motion recommending the City Council move forward with the project while focusing on the transportation issues and the extension of 20th Avenue.The motion was seconded by Goracke and passed unanimously. Wick made a motion recommending the City Council approve the land purchase recognizing the present land value be recognized as an in-kind contribution and that the land purchase is contingent upon grant and project approval.The motion was seconded by Schultz and passed unanimously. EDA Director Reports Industrial Park:Weyrens stated the Industrial Park Improvement project is still moving forward and staff is close to securing right-of-way. Development Updates: Community Development Director Therese Haffner reported the City Council had approved a rezoning of the property just north of Central MN Credit Union to B2 which is consistent with the Land Use Plan. Plans are yet to be submitted. The building permit has been issued for the Oaks on 20th's 2nd apartment complex. Haffner added the Council also approved a Conditional Use Permit for Stack Companies to construct outdoor storage. Strack is constructing an office building on the same lot, but the outdoor storage is what required the CUP approval. Board Member Announcements: None Adjourn: Wick made a motion to adjourn at 7:09 PM; seconded by Schultz and passed unanimously. Therese Haffner Community Development Director