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HomeMy WebLinkAbout[04a] Minutes, June 24th June 24, 2019 Page 1 of 2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Monday, June 24, 2019 at 6:00 PM at the St. Joseph Government Center, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz. Councilors Anne Buckvold, Brian Theisen, Bob Loso, Troy Goracke. Administrator Judy Weyrens. City Representatives Present: City Attorney Chris Nelson, City Engineer Randy Sabart, Public Works Director Terry Thene Others Present: Tim Schubert, Kevin Cox, Cory Ehlert Northland Business Park: Weyrens updated the Council on the status of the Northland Business Park, formerly referred to as the 2019 Industrial Park. She stated that all of the required right-of-way has been secured and staff is working to finalize the Developers Agreement. One of the outstanding items is the Storm Water Development Fee. Since the storm pond will serve more than just this development, staff has recommended the Developer receive credit for the costs related to the pond, reducing the fee to $ 75,000 and the developer will pay $ 25,000 at the time of signing the Development Agreement then $ 25,000 in 2022 and 2025. City Engineer Randy Sabart stated the only requested change the City has is that the stormwater pond areas be changed from easements to outlots due to the city providing maintenance to those pond areas. City Attorney Chris Nelson stated there are a few items in the developer’s agreement that need to be worked out regarding financial obligations on the assessments and payment of those assessments. Schultz made a motion authorizing the Mayor and Administrator to execute Resolution 2019-044 Approving the Final Plat and Developer Agreement for Northland Business Park The motion was seconded by Theisen and passed unanimously. Loso made a motion authorizing the Mayor and Administrator to execute Resolution 2019-045 Awarding Bid for the 2019 Industrial Park Improvements to R.L. Larson in the amount of $3,082,855.20. The motion was seconded by Schultz and passed unanimously. Tax Abatement – Trobec Bus: Weyrens stated that staff received a request for tax abatement from Trobec’s Bus Service. While the plat for the Industrial Park has not been finalized, Trobec’s Bus is purchasing one of the lots to build their new facility. The new facility will be approximately 108,060 square feet with an estimated project cost of $ 7,166,520. They currently employ 115 employees and will be adding 15-25 jobs in the first year with an anticipated 13 in the next three years. Trobecs has presented a gap in finding in the amount of $ 450,000 and are requesting Tax Abatement (TA) versus Tax Increment Financing (TIF) as the project does not meet the requirements for utilization of TIF. As a reminder TA does not required the County and School District to participate and is voluntary. Weyrens is recommending the City reach out to the County and District to see if they would partner with the City since this project will impact more than just St. Joseph. Stearns County Assessor Jeff Johnson has provided the following preliminary increased tax revenue: City of St. Joseph $67,799.65; Stearns County; District 742 $57,275.50. Loso questioned the term of the Tax Abatement to which Weyrens stated that the gap is relatively small and the term would be short, particularly if Stearns County and the School District participate. Weyrens further stated that he EDA has reviewed the request for Tax Abatement and have unanimously requested the City approve the use of TA. Tim Schubert, President of Trobec’s Bus Service: Schubert stated he would like to bring his entire business to St. Joseph as they have outgrown their current space. June 24, 2019 Page 2 of 2 Schultz made a motion authorizing the Mayor and Administrator execute Resolution 2019-045a authorizing the utilization of Tax Abatement for the Trobec Bus proposed project and setting the public hearing. The motion was seconded by Goracke and passed unanimously. Adjourn: Schultz made a motion to adjourn at 6:12 PM; seconded by Loso and passed unanimously. Judy Weyrens Administrator