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HomeMy WebLinkAbout2006 [05] May 15 & 17 CITY Of ST. JOSEPH www.cityofstjoseph.com Administrator ludy'Weyrens st. Joseph Economic Development Authority Notice For Potential Quorum Mayor Richard Carlbom Monday May 15, 2006 5:00 P.M. Workshop Councilors AI Rassier Ross Rieke Renee Symanietz Dale Wick and Wednesday May 17, 2006 Noon Press Conference St. Joseph City Hall 25 North College Avenue These events do not constitute official meetings of the St. Joseph Economic Development Authority, however, there is the potential that a quorum of the St. Joseph Economic Development Authority may be present at this event. There shall be no official business conducted by the St. Joseph Economic Development Authority at either of these events. 2., College Avenue North' .PO Box 66s . Sdint. loseph. Minnesotd ,6,74 Phone ,2.0.,6,.72.01 Fdx Fo.,6,.o142. Administrator JudyWeyrens Mayor Richard Carlbom Councilors AI Rassier Ross Rieke Renee Symanietz Dale Wick CITY OF ST. JOSEPH www.cityo!stjoseph.com St. Joseph Economic Development Authority Meeting Notice Wednesday, May 17, 2006 3:00 p.m. City Hall 1. Call to Order. 2. Approval'of Agenda. 3. Approval of Minutes. a. April 19, 2006. 4. Financial Report. a. Approval of Accounts Payable. b. Financial Report 5. Business. a. Preliminary Request for TIF: Collegeville Development b. Downtown Committee Recommendation to Proceed c. Business Subsidy Reports 6. Director Report. a. Prospect List/Activity Report. 7. Board Member Announcements. 8. Adjournment. 2.') College Avenue North. PO Box 668 . Saint. Joseph. Minnesota ')6'P4 Phone ,2.0.,6,.72.01 fax ,2.0..,6.,.0,42. CITY OF ST. JOSEPH ECONOMIC DEVELOPMENT AUTHORITY Meeting Minutes - Wednesday, April 19, 2006 Present: EDA Board Members Ross Rieke, Richard Carlbom, Carolyn Yaggie-Heinen, Ken Jacobson and Tom Skahen. Absent: None. Also present: Cynthia Smith-Strack of Municipal Development Group. Chairperson Rieke called the April 19, 2006 meeting of the St. Joseph EDA to order at 3:03 p.m. Agenda. Chairperson Rieke introduced the agenda. Moved by Skahen seconded by Car/bom to approve the agenda as presented. Motion carried 5-0. Approval of Minutes. EDA Chairperson Rieke noted the minutes from the March 15, 2006 meeting were included in the packet. Motion by Skahen, seconded by Jacobson to approve the March 15, 2006 regular EDA minutes as presented. Motion carried 5-0. EDA Accounts Payable. Rieke introduced the topic. Strack noted accounts payable for the month included invoice for contract services in the amount of $2236.08. Strack noted the invoice reflected mileage reimbursement for an additional Wednesday in the month of March. The total hours provided through March 31st equaled 100.75, on target for the projected 420 hours of service for the year. Motion. by Jacobson, second by Skahen to approve EDA accounts payable for the month of March 2006 in the amount of $2, 014. 02. Motion carried 5-0. Financial Report. Rieke introduced the agenda item. Strack noted the March financial reports were contained in the packet. Reports presented included: revenue, expense, check register and fund balance. Skahen noted a discrepancy within the check register wherein park operations/maintenance expenses were included in Fund 150/250 report. Strack to check with City Accountant to correct report. Motion by Skahen, second by Heinen to approve the March financial reports. Motion carried 5-0. Release from Lease: EDAlCity for City Hall Rieke introduced the topic. Strack noted the EDA issued a series of lease revenue bonds to purchase the City Hall (former bank) at 25 College Avenue North. Annual payments for the revenue bond were covered through a lease payment tothe EDA from the City. The revenue bond was paid off as part of refunding bond issuance in 2004. During the 2005 audit (conducted in March) a finding was made noting the lease agreement between the EDA and the City relative to the initial revenue bond issuance was not formally terminated. Since the EDA was a party to the lease, official authorization/direction to execute the release agreement Is needed. Motion by Jacobson, second by Heinen to authorize/direct execution of the release from lease. Motion carried 5-0. EDA Minutes - April 19. 2006 Page 1 3 Technical Inventory CSAH 75 Corridor: 2nd Street NW to 3rd Street NE (first tier of lots) Rieke introduced the agenda item. Strack stated a technical inventory for the first tier of lots within the CSAH 75 corridor between 2nd Street NW to 3rd Street NE has been created. CSAH 75 is classified as a "Principal Arterial" roadway as it passes through the City of S1. Joseph. The Principal Arterial classification means the primary function of the roadway is one of mobility as opposed to access. Controlled access points. may be minimized in an attempt to promote the movement of through traffic. Therefore,frontage/backage roads are essential mechanisms providing convenient access to local business establishments. 2003 traffic estimates indicate CSAH 75 carries approximately 15,100 vehicle trips per day west of College Avenue and 22,500 vehicle trips per day east of College Avenue. In comparison, 1-94 carries approximately 21,800 trips per day west of CSAH 2 and 25,000 trips per day east of CSAH 2. Increasingly large volumes of traffic in the CSAH 75 corridor through St. Joseph have lead to the development of commercial uses adjacent to the corridor. For the most part the commercial uses are of a nature that is highly dependent upon patronization by motorists as opposed to destination-oriented clientele. Commercial development within the CSAH 75 corridor has been occurring for quite a few years essentially radiating outward from the intersection of College Avenue (CSAH 2) and CSAH 75. Commercial development particularly between 1st Avenue NW and 3rd Avenue NE has occurred in a haphazard fashion with large variations in building styles, exterior material types, setbacks, access patterns and building placement on lots. The haphazard nature of development is further exacerbated by parcels that have not yet converted from residential uses to commercial uses and varying lot sizes. Throughout the study corridor infill/redevelopment needs are evident. Strack noted the technical inventory includes: (1) a map depicting the subject area, (2) spreadsheet containing pertinent information regarding parcels in the subject area and (3) a pictorial directory of properties within the subject area. Of the 43 properties abutting CSAH 75 a number are under unified ownership but not contiguous. Furthermore, several of the lots especially south of CSAH 75 have existing discrepancies between what they are zoned for, what they are actually used for and what they are guided toward for future use. In addition, several former single-family homes have been purchased and are being used for student rental. Such uses may be difficult to convert due to the ec;onomic benefit of renting versus costs associated with demolition/redevelopment. Commercial land prices may also increase development costs thus detracting from redevelopment potential. Corridor attributes include: the condition of roadway, traffic mobility which (at this point) appears to be sufficient and good visibility from principal arterial - desirable for highway commercial use. Corridor challenges include: the perception of development within the corridor as haphazard, commercial uses interspersed with residential uses, infill opportunities are not unified, parcels vary greatly in size, lack of continuous frontage/backage roads offering access to commercial development and inconsistent architectural styles, wide variety of building construction types/materials employed, non-uniform setbacks and limited landscaping. Strack noted that permitted and special uses within the B-2 District allow for a diverse mix of retail and service establishments but do not allow residential uses as the corridor is in transition from primarily residential to primarily business. It is the goal of the City to develop a continues pattern of complimentary land uses adjacent to the corridor that are dependent on high volumes of vehicular traffic and of an intensity that's compatible with close proximity to an arterial roadway. The EDA is discussing the corridor so as to entertain input related to the unique challenges/opportunities presented to development and/or redevelopment projects in the corridor. Strack noted some items to consider included: (1) level of financial assistance offered to establishments conducting redevelopment efforts of a sizable scale; (2) participation by the EDA. in master planning the corridor and/or (3) participation by EDA. in securing first right of refusals for individual properties as a means of assisting with the combining of smaller lots into one larger lot more conducive to commercial development. EDA Board Members discussed whether or not it wished to participate in a redevelopment effort in the identified corridor. The EDA reached consensus on their interest in improving the aesthetics of the EDA Minutes - April 19, 2006 Page 2 ~ corridor which would begin with small incremental improvements and potentially mature to a more robust project. The next step is for MDG, Inc. to create a summary of potential strategies for project/goal implementation. Zoning Updates - Input Rieke introduced the topic. Strack noted that the Planning Commission and City Council were considering several zoning ordinance amendments a few of which would potentially impact businesses. Therefore, the EDA was asked to comment on a few of the proposed amendments, one relating to signage, the other relating to standards within business districts relating to corridor aesthetics. The sign ordinance amendment is proposed to update the following sections of the sign ordinance: findings, purpose/intent, effect, severability, non-commercial speech, exemptions and non-conformance. Sections relating to design standards for downtown and high visibility corridors are proposed to be added. In addition as a follow up to discussion previously related to business corridor aesthetics, sample language regarding a transportation corridor overlay district was introduced. The proposed language would not address appropriate uses, but rather ensure uniform aesthetic standards were incorporated in certain designated areas. Although the EDA did not review the specific standards, the EDA did discuss the concept of creating high quality corridors adjacent to major transportation routes through uniform standards related to viewshed preservation, parking lot location, utility placement underground, building layout, architectural appearance, lighting and screening. The EDA preferred the corridor overlay approach to instituting specific standards throughout all commercial districts. Director's Report. Carlbom exited the meeting at 4:50p.m. Rieke introduced the topic. Strack noted the Director's Report was included in the packet. Board Member Announcements. Rieke updated Board Members on the SCAEDP meeting held earlier in the day. Rieke noted that the "Associate Memberships" were being successful and that the proceeds of the associate memberships were earmarked for marketing the St. Cloud area. Adjournment Motion by Heinen, seconded by Jacobson to adjourn. Motion carried 4:0. Meeting adjourned at 5:00 p.m. EDA Minutes - April 19, 2006 Page 3 E; THIS PAGE INTENTIONALLY LEFT BLANK G CITY OF ST. JOSEPH www.cityofstjoseph.com DATE: May 10, 2006 Administrator MEMO TO: Judy Weyrens S1. Joseph Economic Development Authority ~L5 Joanne Foust & Cynthia Smith-Strack, Municipal Development Group FROM: Mayor RE: Richard Carlbom Accounts Payable - April 2006 April Financial Reports Councilors AI Rassier Ross Rieke Renee Symanietz Payable To Dale Wick MDG, Inc. Total A. Accounts Payable: Following are Accounts Payable for the EDA's Consideration. For Fund April Econ. Dev. Service 150-46500-300 Amount $ 2,122.60 $ 2,122.60 Action: A MOTION is in order to approve the Accounts Payable. B. Financial Report: April financial reports for the EDA are following. The reports consist of: 1. EDA revenue to date. 2. EDA expenditures to date. 3. Check Register. 4. Fund Balances (Econ Dev. 150, TIF 1-3 155, TIF 1-4 156 and RLF 250). Action: A MOTION is in order to approve the financial reports. I 2.~ College Avenue North. PO Box 668 . Saint. Joseph, Minnesota ~6,74 Phone ,2.0.,6,.72.01 Fax Fo.,6,.0'42. .. INVOICE. MUNICIPAL DEVELOPMENT GROUP, INC. 25562 WILLOW LANE NEW PRAGUE, MN 56071 952-758-7399 FAX: 952~758-3711 mdg@bevcomm.net City of St. Joseph Attn: Judy Weyrens City Administrator PO 668 St. Joseph, MN 56374 Invoice Date 05-01-06 I Payment Terms: 30 days I Customer ID #: ST J06ED Project April Economic Development Services See attached detail Amount: $1,820.00 Monthly contract fee-35 hrs $ 302.60 680 miles x .445 $2,122.60 Code to: 150-46500-300 for general EDA Remit To: Municipal Development Group, Inc. 25562 Willow Lane New Prague, MN 56071 Dates-EDA April 5, 2006 EDA Office Hours 7.25 hrs. C. Strack April 12, 2006 EDA Office Hours 8.50 hrs C. Strack April 19, 2006 EDA Office Hours & EDA Mtg 8.00 hrs. C. Strack April 26, 2006 EDA Office Hours & DT Mtg. 7.50 hrs. C. Strack . Total April, 2006 31.25 hours Total MDGs Inc. 2006 Hours through Aprils 2006 = 132 Thank your We appreciated the opportunity to work with you! I Check No. Date: ~4-k,L Principal s City of St. Joseph EDA Report . April 30, 2006 2006 YTD April 2006 Account Oeser Budget 2006 Amt YTD Amt Balance FUND 150 Economic Development E 150-46500-103 Legislative Bodies $700.00 $0.00 $0.00 $700.00 E 150-46500-151 Workers Compo $100.00 $0.00 $0.00 $100.00 E 150-46500-200 Office Supplies $500.00 $24.50 $24.50 $475.50 E 150-46500-300 Professional $28,000.00 $2,236.08 $9,416.26 $18,583.74 E 150-46500-303 Engineering Fee $4,000.00 $0.00 $0.00 $4,000.00 E 150-46500-304 Legal Fees $1,000.00 $0.00 $0.00 $1,000.00 E 150-46500-321 Telephone $1,200.00 $41.16 $163.39 $1,036.61 E 150-46500-322 Postage $200.00 $0.00 $20.50 $179.50 E 150-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 150-46500-331 Travel & $500.00 $0.00 $73.77 $426.23 E 150-46500-340 Advertising $1,000.00 $0.00 $0.00 $1,000.00 E 150-46500-433 Dues & $0.00 $0.00 $8,000.00 -$8,000.00 E 150-46500-510 Land $0.00 $0.00 $0.00 $0.00 E 150-46500-582 Computer Software $300.00 $0.00 $0.00 $300.00 E 150-46500-587 Special Projects $0.00 $0.00 $0.00 $0.00 E 150-46500-700 Misc $0.00 $0.00 $0.00 $0.00 FUND 150 Economic Development $37,500.00 $2,301.74 $17,698.42 $19,801.58 FUND 155 TIF 1-3 Borgert (SKN) E 155-46500-300 Professional $311.67 $0.00 $500.00 -$188.33 E 155-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 155-46500-340 Advertising $16.67 $0.00 $0.00 $16.67 E 155-46500-600 Debt Service - $2,769.14 $0.00 $0.00 $2,769.14 E 155-46500-611 Bond Interest $3,471.05 $0.00 $0.00 $3,471.05 E 155-46500-620 Agent Fees $0.00 $0.00 $0.00 $0.00 FUND 155 TIF 1-3 Borgert (SKN) $6,568.52 $0.00 $500.00 $6,068.52 FUND 156 TIF 1-4 St. Joe Development E 156-46500-300 Professional $2,422.00 $0.00 $500.00 $1,922.00 E 156-46500-304 Legal Fees $0.00 $0.00 $0.00 $0.00 E 156-46500-327 Tax Increment $0.00 $0.00 $0.00 $0.00 E 156-46500-340 Advertising $50.00 $0.00 $0.00 $50.00 E 156-46500-600 Debt Service - $6,439.94 $0.00 $0.00 $6,439.94 E 156-46500-611 Bond Interest $15,507.76 $0.00 $0.00 $15,507.76 E 156-46500-620 Agent Fees $0.00 $0.00 $0.00 $0.00 FUND 156 TIF 1-4 St. Joe Development $24,419.70 $0.00 $500.00 $23,919.70 FUND 250 Revolving Loan Fund E 250-46500-304 Legal Fees $0.00 $0.00 $0.00 $0.00 E 250-46500-490 Revolving Loan $0.00 $0.00 $0.00 $0.00 FUND 250 Revolving Loan Fund $0.00 $0.00 $0.00 $0.00 $68,488.22 $2,301.74 $18,698.42 $49,789.80 1 City of St. Joseph EDA Revenues April 30, 2006 YTD % SOURCE SOURCE Descr Budget Rev Revenue Balance of Budget FUND 150 Economic Development 36210 Interest Earnings $0.00 $0.00 $0.00 0.00% 39201 Transfers from Other $37,500.00 $0.00 $37,500.00 0.00% FUND 150 Economic Development $37,500.00 $0.00 . $37,500.00 0.00% FUND 155 TIF 1-3 Borgert (SKN) 31050 Tax Increment $0.00 $0.00 $0.00 0.00% FUND 156 TIF 1-4 St. Joe Development 31050 Tax Increment $0.00 $0.00 $0.00 0.00% FUND 250 Revolving Loan Fund 36210 Interest Earnings $0.00 $97.74 -$97.74 0.00% 36212 CDAP Loan Interest $0.00 $279.92 -$279.92 0.00% 39312 CDAP Loan Proceeds $0.00 $2,814.05 -$2,814.05 0.00% FUND 250 Revolving Loan Fund $0.00 $3,191.71 -$3,191.71 0.00% $37,500.00 $3,191.71 $34,308.29 8.51% 10 City of St. Joseph EDA Expenditures April 30, 2006 YTD % OBJ OBJ Oescr Budget Exp Expense Balance of Budget FUND 150 Economic Development DEPART 46500 Economic Development Authority 103 Legislative Bodies $700.00 $0.00 $700.00 0.00% 151 Workers Compo Insur. Premo $100.00 $0.00 $100.00 0.00% 200 Office Supplies $500.00 $24.50 $475.50 4.90% 300 Professional Services $28,000.00 $9,416.26 $18,583.74 33.63% 303 Engineering Fee $4,000.00 $0.00 $4,000.00 0.00% 304 Legal Fees $1,000.00 $0.00 $1,000.00 0.00% 321 Telephone $1,200.00 $163.39 $1,036.61 13.62% 322 Postage $200.00 $20.50 $179.50 10.25% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 331 Travel & Conference Expense $500.00 $73.77 $426.23 14.75% 340 Advertising $1,000.00 $0.00 $1,000.00 0.00% 433 Dues & Subscriptions $0.00 $8,000.00 -$8,000.00 0.00% 510 Land $0.00 $0.00 $0.00 0.00% 582 Computer Software $300.00 $0.00 $300.00 0.00% 587 Special Projects $0.00 $0.00 $0.00 0.00% 700 Misc $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $37,500.00 $17,698.42 $19,801.58 47.20% FUND 150 Economic Development $37,500.00 $17,698.42 $19,801.58 47.20% FUND 155 TIF 1-3 Borgert (SKN) DEPART 46500 Economic Development Authority 300 Professional Services $935.00 $500.00 -$188.33 120.14% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 340 Advertising $50.00 $0.00 $16.67 66.67% 600 Debt Service- Principal $8,307.42 $0.00 $2,769.14 66.67% 611 Bond Interest $10,413.14 $0.00 $3,471.05 66.67% 620 Agent Fees $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $19,705.56 $500.00 $6,068.52 69.20% DEPART 49301 Transfer to other Funds 700 Misc $0.00 $0.00 $0.00 0.00% FUND 155 TIF 1-3 Borgert (SKN) $19,705.56 $500.00 $6,068.52 69.20% FUND 156 TIF 1-4 St. Joe Development DEPART 46500 Economic Development Authority 300 Professional Services $7,266.00 $500.00 $1,922.00 73.55% 304 Legal Fees $0.00. $0.00 $0.00 0.00% 327 Tax Increment Certification $0.00 $0.00 $0.00 0.00% 340 Advertising $50.00 $0.00 $50.00 0.00% 600 Debt Service - Principal $19,319.82 $0.00 $6,439.94 66'.67% 611 Bond Interest $46,523.28 $0.00 $15,507.76 66.67% 620 Agent Fees $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $73,159.10 $500.00 $23,919.70 67.30% FUND 156 TIF 1-4 St. Joe Development $73,159.10 $500.00 $23,919.70 67.30% FUND 250 Revolving Loan Fund DEPART 46500 Economic Development Authority 304 Legal Fees $0.00 $0.00 $0.00 0.00% 490 Revolving Loan $0.00 $0.00 $0.00 0.00% DEPART 46500 Economic Development $0.00 $0.00 $0.00 0.00% FUND 250 Revolving Loan Fund $0.00 $0.00 $0.00 0.00% $130,364.66 $18,698.42 $49,789.80 61.81% II City of St. Joseph EDA Check Register April 30, 2006 Search Name CHECK # Comments FUND DEPART Amount MUNICIPAL DEVELOPMENT CORP 037153 eda contract 150 46500 $2,236.08 SHAMROCK LEATHERS, INC 037165 B Gohman award 150 46500 $24.50 TDS METROCOM 037172 telephone 150 46500 $41.16 $2,301.74 II Administrdtor Judy Weyrens MdYor Richdrd GJrlbom Councilors AI Rdssier Ross Rieke Renee Symdnietz Ddle Wick CITY OF ST. JOSEPH www.cityofstjoseph.com DATE: May 10, 2006 MEMO TO: Economic Development Authority / 1-..5 Cynthia Smith-Strack, Municipal Development Group FROM: RE: Request for Tax Increment Financing Assistance - Collegeville Development Request: Collegeville Development has submitted a pre-application for Tax Increment Financing assistance for the construction of a 19,296 square foot mixed-use facility at the former Krebsbach Chevrolet site located at 25 East Minnesota Street and may include the current laundromat. A copy of the TIF Pre-Application is attached for your review. Representatives of the company will be present to answer questions regarding the preliminary application. Background: TIF Tax increment financing is a tool which allows the City/EDA to reimburse a company or land owner a portion of the new propertv taxes aenerated as a result of an development project. The amount of financial assistance available (TIF) is dependent upon a number of factors including but not limited to the assessed market value of the building and the financial need of the company. There are several types of tax increment financing districts, each of which has a maximum increment period established by state law. Collegeville Development is requesting assistance in the form of redevelopment TIF. RedeveloDment TIF A "redevelopment district" means a type of TIF district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: 1. Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; 2. The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; 3. Tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: a. Have or had a capacity of more than 1,000,000 gallons; b. Are located adjacent to rail facilities; and c. Have been removed or are unused, underused, inappropriately used, or infrequently used; or 4. A qualifying disaster area. /3 2., College Avenue North' PO Box 668 . Sdint. Joseph, Minnesotd ,6.374 Phone ,2.0.,6,.72.01 FdX 12.0.,6,.0'42. The Collegeville Development project is expected to qualify for redevelopment TIF under (1) above. Term of TIF Agreement The maximum term of a redevelopment TIF district is 25 years, however, the term of any TIF agreement should only reflect the amount needed to close a demonstrated 'gap' in financing; therefore, very often the approved agreement terms are much shorter than the maximum allowed by state law. Pavas YOU 00 TIF State law allows the City/EDA to proceed with two types of TIF financing mechanisms. The first is the issuance of a TIF bond by the City/EDA. In this arrangement the proceeds of new tax increments are immediately available to the developer in the form of cash. With this type of mechanism the City/EDA bear significant risk in that if the project isn't completed and/or taxes are not paid, the City is responsible for making the bond payment. Due to the amount of risk involved, the City of St. Joseph's TIF policy highly discourages the issuance of TIF bonds. Instead an arrangement known as 'pay as you go' is the standard mechanism embraced by the City/EDA. With 'pay as you go' TIFt the City does not issue debt, instead the City enters into an agreement with the Developer pledging to 'rebate' a portion of the tax increment provided property taxes are paid. In this kind of arrangement, the Developer may use the TIF agreement to leverage a note from a conventional lender but the City is not incurring risk if taxes aren't paid or the project not completed. The Proiect A summary of the proposed project is attached. The redevelopment project consists of the construction of a 19,296 s.f. commercial/residential mixed-use structure within the Downtown. A conceptual site plan and cost estimates for the two-story, traditional downtown facility are attached for your information. Pay-as-you-go redevelopment TIF assistance is requested in order to help the project move forward. The Company has provided the EDA with pro-forma analysis illustrating a $340,000 gap in funding following an injection of personal capital and conventional loan; without redevelopment TIF assistance, the project will not occur. Requirements: Preliminary TIF Application: The following are required to be submitted with the preliminary application for TIF assistance: 1. A map showing the exact boundaries of the proposed development. A site plan is attached which illustrates the proposed 19,296 sf mixed-use facility. . 2. A General description of the project including the following: . Size and location of building(s); The proposed two story structure will be utilized for commercial lease space on the ground level with residential lofts on the second "oor. The building design is reminiscent of traditional downtown buildings with a "at roof, balconies on the second floor and a building forward position on the lot. Parking will be provided to the rear of the facility and landscaped courtyard is proposed for the front of the lot at the comer of Minnesota and College. . Business type and use; The redevelopment project will add nine 1,200 sf commercial lease units in downtown. Commercial uses are expected to be a mix of retail and professional offices. A total of 10 housing units (lofts) are proposed to occupy the second story of the building. The lofts have been designed to accommodate an upscale clientele and feature balconies on both the front and rear of the each loft. The lofts are not tor rental by students. The project as proposed allows for renting or owning of lofts. ILl . Traffic information, including parking; Parking facilities are proposed to the rear of the building, as required in the Central Business District. The Planning Commission must approve the facility site plan, including parking requirements. The EDA does not have jurisdiction over parking lots. . Timing of project; The applicant wishes to proceed with the expansion on a timely basis. The project can not commence until, if approved, a TlF agreement is signed. Commencement of any construction activity prior to the signing of a TlF agreement will void any/all increment available to the project and therefore, the employment of tax increment financing. The applicants wish to proceed with site plan approval later this summer with construction anticipated to begin in the Fall of this year or Spring 2007. . Estimated market value following project completion. MDG has not consulted with the County Assessor pending receipt of formal sitelbuilding plans. The applicant, however, has provided project estimates within project pro- formas which place the project cost at $2.24 million. If the EDAlCouncil approve/authorize submission of a final TlF application, building plans will be submitted at that time for review by the Steams County Assessor. 3. The existing Comprehensive Plan land use designation and zoning of the property. The comprehensive plan guides the subject parcel to continued downtown (Central Business District) use. Current zoning class is B-1. Mixed-use facilities are permitted within said zoning class providing residential does not occupy greater than 60% of the gross square footage. 4. A statement identifying how the increment will be uses and why it is needed to complete the project. The increment will be used to assist with the following eligible expenses associated with the development: land acquisition, site preparation, demolition and utility placementlselVice/connection. Thorough sources/uses will be included. with the final application for TlF, the company will be required to disclose financial information in conjunction with the final application. Preliminary sources/uses are included in attachments to this memo. 5. A statement identifying the public benefits for the proposal including estimated increase in property valulation, new jobs to be created and other community assets. The subject property currently consists of a vacant gravel parking lot within the Central Business District (downtown). The proposed project is estimated to cost $2.24 million. The proposed project will redevelop an underutilized parcel and, if the TlF district is structured large enough, encourage additional revitalization within the Downtown in conjunction with other revitalization effots. 6. A written perspective of the developers company (Le. corporation, principals, history, past projects, etc.). A written narrative is attached to this memo. TIF Policy: A copy of the City's TIF policy is attached. The policies for the use of TIF include the following: 1. General Policy - The City of St. Joseph and EDA shall consider Tax Increment Financing for projects that serve to accomplish the City's goals for housing and economic development as they may change over time. The goals include facilitating projects that would result in the creation of quality jobs(Le. stable employment and/or attractive wages and benefits) and the attraction. retention. and eXDansion of business and housina oDlions in the City. The request appears to meet this policy criteria. If; 2. Objectives: As a matter of adopted policy, the City of S1. Joseph and EDA will consider using tax Increment Financing (TIF) to assist private development projects to achieve one or more of the following purposes: The project appears to meet the objective outlined in (a)-(d) and (f) below. a. Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas. b. To provide for a balanced and sustainable housing stock to meet diverse needs both today and in the future. c. To retain local jobs and/or increase the number and diversity of quality jobs (Le. stable employment and/or attractive wages and benefits. d. To encourage additional unsubsidized private development in the area, either directly, or through secondary "spin-off' development. e. To offset increased costs of redevelopment (Le. contaminated site clean-up), over and above those costs that a developer would incur in normal urban and suburban development. f. To facilitate the development process and to achieve development on sites which would not be developed without this assistance. 3. Costs that qualify for TIF assistance: The TIF would assist with expansion of an existing facility and promote 13 new livable wage jobs within two years. 4. Minimum Qualifications: a. TIF would facilitate development that would not occur without the assistance. The Preliminary TlF application provides evidence the development would not occur without assistance a per pro-forma analysis conducted. b. But-For Test. The pre-application requires the developer to submit a statement identifying how the increment will be uses and why it is needed to complete the project. The applicant has submitted pro-formas illustrating the project does not cashflow without TlF assistance. c. The project is consistent with the Comprehensive Plan and zoning ordinance. The subject parcel is zoned downtown commercial. d. Prior to approval of the TIF Plan (at the time of final application), financial guarantees and credentials will be required. e. Ownership (control) of the parcel will be required by the applicant. 5. Desired Qualifications: a. Taxes paid before and after the development will be greater than a 2:1 "ratio. Current taxes payable on the subject parcels equate to $10,092. Taxes post construction are estimated at 3% of the project cost or $67,000 annually. /G b. TIF should not be used for speculative projects. Collegeville Development was formed in 2000. The company has developed projects in Winona and Northfield in conjunction with college communities. Complete financial information from the company and major shareholders. will be required if/when a final application is submitted. c. TIF should not be used to pay for overpriced land. The TIF assistance is proposed to be used for costs associated with redevelopment of substandard property within the original townsite (Central Business District) and not for greenfield development d. TIF should be pay-as-you go. The request is for pay-as-you go assistance. e. Preference is given to projects that do not cause extraordinary demands on City services. The applicant is proposing a mixed-use facility. No extraordinary demands on the utility systems are anticipated. f. Preference is given to projects that are consistent with the compo plan, improve surrounding land uses, provide new employment, are financially feasible and provide the highest and best desired use for the property. The project appears to meet all of the aforementioned criteria in addition to adding a unique type of dwelling unit (loft) to the City's housing stock. Appropriateness of TIF: Attached is the "Grading and Report Card for TIF". The proposed project received a composite score of '5.0' meaning it is an 'excellent' use of tax increment financing. Other Considerations: The Downtown Committee formed under the auspices of the EDA is bringing a recommendation to the City Council to proceed with a major, long-term downtown revitalization project. The Collegeville Development project is proposed to be announced' in conjunction with the revitalization project as a means of jump-starting both projects. The EDA may wish to recommend the City Council establish a TIF district which encompasses more parcels than those contained in the Collegeville Development project as a means of assisting. other potential redevelopment projects within the Downtown. Action: If the EDA is supportive of utilizing TIF for this project, a MOTION is in order to recommend the City Council approve the pre-application and authorize submittal of the final application and fee. /7 THIS PAGE INTENTIONALLY LEFT BLANK /6 City of St. Joseph TIF Assistance Program Preliminary Application (Please print or type) General Information: Legal name of owner/applicant: COJ..ll6l.Vll..LC b~Vtl..,t1P"1tN" &l<.rJwt LlC Operating Entity (if different): lo/.J" IrJ l.sT" ST. G&It"1p...) N .srdU.tr Address:...sJ' CL.::J lil.!) M. N ...rl630 \ Telephone Number: ( ~ r 4- ... 0 ry (,;.. Fax Number: Name of contact person: 'J". "" h t <>>/0 V AN ^" l 0 f(. f4.r4- oC'"J4o M u'(' l B'06J'1e The following information should be presented in to the St. Joseph EDA Office as soon as possible after the initial meeting with the EDA Director. The information will be evaluated to determine if the proposed project conforms with the community's goals and objectives. => A map showing the exact boundaries of the proposed development. => Give a general description of the project including the following: · Size and location of building(s) · business type and use · traffic information, including parking · timing of project · estimated market value following completion => The existing Comprehensive Plan land use designation and Zoning of the property. Make a general statement as how the project will conform to the land use designation. => A statement identifying how the increment will be used and why it is needed to complete the project. => A statement Identifying the public benefits of the proposal including estimated increase in property evaluation, new jobs to be created and other community assets. => A written perspective of the developers company(i.e. corporation, principals, history, past project, etc.) "-J"{'lt ""$r ~ b 1 fa/,) vAf'J NI )- c~ ~.~~~L o<=-1=.t f/... Signature Applicants signature: Date:~C, St. Joseph TlF Policy /9 Attachment C-I 1; -,,' _, '1' ". ~,' ~; ',1,' '~, '." } ^:"I' ......~'. .i,' f ",-\ _~ ,lV'" l_~ , , , " ,+ ','t t _'?.I_~;~ '~. .,\- " " #l "-~. .,.'. " " , !'F ~ ,... .\,. "l~ .\ " -,.. ',' ; t '11- '" ...,0 .it .01 ....' -:It' (" ~ ",f :7: " 'it.' THIS PAGE INTENTIONALLY LEFT BLANK LV . ATTACHMENT TO PRELIMINARY APPLICATION FOR TIF ASSISTANCE Collegeville Development Group Project in the City of St Joseph May 2006 Site Map: See attached map showing the location of the proposed project which is located on the north east corner of College Avenue and Minnesota Street. It includes lots 11, 12, 13, and parts oflots 4,5,6, 7, and 13 all in Block 10, Saint Joseph. Size and Location of Buildings: The proposed new building would be situated set back from Minnesota Street on lots 5, 11, 12, and 13. It might also include part oflot 4. See the attached site plan. There is currently a laundromat located on lot 4 and a vacant wood frame structure located on lot 5.. The planned new building will be a 216' x 45' two story building with a footprint of approximately 9760 square feet. The ground level would consist of approximately 9 bays of 1200 square feet apiece to be marketed for retail and commercial users. The second floor is planned to be small and affordable loft style condominiums which would be for sale or rent and could include covered porches on the front and backs of the building. In addition there would be abuilding accessible from the alley running east west located between Ash Street and Minnesota Street used for approximately 14 garage units for the tenants or owners of the loft condominiums. The estimated market value upon completion is $2,240,000. Timing: Commencement of construction will depend on our ability to get Letters of Intent from buyers or tenants, but is intended to be in the fall of 2006 or spring of 2007. Completion of construction would be approximately 6 to 8 months after commencement. Comprehensive Plan: The project is consistent with the uses permitted in the City Central Business District; but will be subject to zoning approval of by the City Council. The project would also require vacation of the alley platted between lot 12 and 13. See the attached Certificate of Survey. Use of Tax Increment: Tax increments are being requested to make the project financially feasible; and will be used for tax increment eligible expenses primarily including land acquisition, 21 demolition, and site improvements. A detailed pro-forma will be submitted as part of the TIF final application. A very preliminary pro-forma has been submitted to City staff, but it must be understood that it is subject to change as final costs and revenue projections are arrived at prior to closing on a TIF Development Agreement with the City. Public Benefit: The project will be an anchor redevelopment project at the most high profile corner in the Central Business District. It will result in an increased property tax base. It will create unsubsidized ( except for the TIF financing) affordable housing. We expect that the housing will be attractive to employees of the College of St Benedict. Collegeville Development Group LLC: See the attached description of Collegeville Development Group officers and advisors. Additional information about the company can be viewed at the company web site: Collegevillecommunities.com 1Z H!II'fS10~ NOSI'f'f111IM OOH1S3N09 ),9 ~OOZ 0 1HOIHAdOO ~ 0() "'L~~ NW 'Hd3SOr .I.S S8Je/OOSsV ~ wOO'OOJlsouoq'''''M )llS 83M 4J/WSJO)f lli <D ~ ,.. ~ " I L X08 Od Z,Z9'l,Z XVJ I:,Snsz'ozl: 131 . - z 0() SNOISIA:JII f >/!/JepUV -=- 10m NI'f 'on0101S UOSW811/!M -=- 2 0 w 0 J r SOOZ 3Nnr '1 :31W S3S/~d~31N3 eU8S0~ rur H1nos 13311lS Olll:Z IUI: riff' .. 0 ..' ,.. ~ ~ NO<;~Vl :03~03HO IJo'<.AJns OOJJS9U08 . ':lN130i!llS :NMVlIO H~V8SB3~)f OOJJ9GUOa 810'1/l/01'( . 8J"UrllU3 VI SnJJINI311 :A3^lIns ........, :::n ~ > L :l \0 4- () ~~ -I-'i I 0: \)J --, 4- -- I -I-'i , L' \\)~ \)! 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"i:K';~~~~:~"'< 05A!1.us . ~_OI...~lli""'?i(;ly%:' l0 '2.~ (' r Tax Increment Financing Worksheet St Joseph Mixed Use- Downtown Assumes NPV of TIF note is 337,000 Land Cost Bank lends 90% of TIF note, we assign TIF payments to Lender La Playette Kippley Site Krebsbach Site Land Total Cost o 330,000 170,000 500,000 Canst, GC & Soft 1,740,000 Total Dev Cost 2,240,000 1,900,000 340,000 True Economic Value (price at which the deal works GAP which needs to be funded TIF Note 303,300 Applied 326527 X.9 36,700 Remaining Gap 'l-7 >- Q) 0. 0. S2 "0 C co ..c () co ..c en ..0 Q) ~ ~ CI) ..... CO E ~ t/) w ..... t/) o o ..... c CI) E C- O - CI) > CI) C - CO ..... o t- CI) ..... .- en .c (.) co .c t/) ..c CI) ~ ~ en u (!) - 01 (!) ('\l .... en ('\l C 01 .5: (!) E 0 - 0 ('\l (!) co .... ....N .- ~"O ~ 0 C LO ('\l "0 ,...: en c LO~ ';: U en x (!) .... "0 (!) en u c c <0 .- .~ O'>N NO'> 0.. O'>LO 0. ..-N ('\l 00 0 000 OOOOOOOOCOO 0 00 ..- NO 0 000 0000000060 0 00 0 LOO 0 OOLO OOOOOOOOCOO 0 00 ~- -0 ci LO ..- N L6 - 0 O'>LO ciciLOciC<)LOLOLOc<)ci gN 0 0..- ..- -l -IN''-''-~ ~~~ ..- ~ ..- U U ..- 0 0..- ~ U LO N ..- .5: .5: z z .5: N ~ 0 ~ - "0 ~ ell =- .... C/j o () .... C/j C o o (!) U C ~ 0. ..Q a1 _<t~/ 1-"5~ &en - -lOCI o C ~ ~ en >. ~::2 .5: ~ 0 t:: (!) S '-enO 01 Qj ~ ~ ~ C '3:; C/j <(01...._" _ u~en(!)_~"O o 0. E (!) en ..... (!) en.S c en 0') u - _ () :J en Q) Q) >. c: Q) .- ..... - 0') .... <( Q) - lJ) (/) 0 en .5: I- (!) ~ LL E ~ (jj ro .5: ~ u ..E .~ E l!:? ~~<(cOl~~:J>E~cO')~c(!)cnE(!) 00> 0 C O::J en (!) 0 w 0 '''_ '" 0.0.... 0- cn~>owcncnEoo~o~o~cnO<(OE - ~ !:9. '0 C o U C Ql G l~ '0 0 c E ell (!) -10 () o I- Behind the Concept Collegeville Development Group Founded in 2000, Collegeville Development Group is a limited liability corporation located in St. Cloud, Minnesota, 60 miles north of Minneapolis. Collegeville Development Group was founded by ,Jon Petters. Collegeville Development Group also maintains an experienced Board of Governors, a group of advisors and investors who are actively involved in the company. Profiles Jon c. Petters is the CEO and founder of Collegeville Development Group. Jon is a successful entrepreneur vvho has founded and managed hvo prosperous companies. Tn '1984 he co-founded Aria Communications, a privately held telemarketing and direct- mail organization knovvn nationally for fundraising. In 1992 Jon founded and managed Irresistible Ink, Inc., a direct- marketing company that \-vas sold to Hallnlark Cards, Ine. in 1998. 'While ,It lrresistible lnk, he was awarded recognition as the Direct Marketer of the Year 1997 in the State of Minnesota. Prior to founding his marketing companies, Jon was a real- estate broker and \vas involved in commercial real-estclte development \.vith Brutger Companies. He has the following educational background: MBA, St. Cloud State University; School of Architecture, University of Ivlinnesota; and BS, Individualized Major, Saint John's University. Colleen Hollinger Petters is the President of Collegeville Communities. Colleen brings to us over twenty years of successful careers in advertising, sales, marketing, and writing, including six years at Irresistible Tnk, Tne., and as Executive Director of a regional Anlerican Eed Cross. She holds a degree in Business Communication from the University of Minnesota, Duluth, and is a published journalist and writer. Thomas H. Klassen is the Chief Operating Officer of Collegeville Development Croup, coming to us after a successful career in the development and corporate administration of several regional health systems, including construction of medical facilities, as well as an entrepreneurial career in the development of hydroelectric pmver capabilities. He grad uatcd from St. John's University in Minnesota with a degree in Natural Sciences, and received his Masters in J lealth Administration from the University of Minnesota. James Degiovanni is Collegeville Development Group's Chief Corporate Officer. He holds a layV degree from the University of wfinn.esota and a Master of Arts degree in Urban an.d I\.egional Studies from Minnesota State University - Mankato. Jim holds Minnesota licenses to practice law and broker real estate. Jim spent 20 vears as member and shareholder of the Rinke Noonan La,,\' Firm, specializing in municipallavv and real esta te development. Prior to practicing bw he served as Executive Director for the Scott County Minnesota Housing and Redevelopment Authority and in the public sector in areas of housing and conmmnity developnwnt. 4 @ Collegeville Development Group - Collegeville Communities page 8 ~q Peg S. Eisenreich joins us as our Chief Financial Officer, coming with over 16 years of experience in the areas of accounting, finance and corporate controls. Prior to joining the Group, Peg served within the accounting and finance sector as controller and office manager, as well as eight years as chief financial officer and board of directors for a large building developer. Ms. Eisenreich has a BS degree in Accounting with and emphasis in economics from Saint Cloud State University. Ted Schmid is a board member and investor, and is actively involved in construction for CollegeviJ1e Communities, serving as advisor and general contractor on some projects. Ted is the owner of Lumber One, Inc., a third-generation family business. Recent projects include over 350 residential projects ranging from single-family homes to a 100+ condominium project. Ted is the recipient of the Minnesota Governor's a ward for affordable housing. Diane Coplan is a board member and consultant. Diane has an extensive professional career devoted to social services and gerontology. Experience includes: Co-founder, Central Minnesota AIDS Project; Board of Directors, Mankato State University Foundation; Jewish Family and Children's Services and older adult services; graduate work in gerontology at St. Cloud State University; BS in Elementary Education from Mankato State Universitv. Don Gustofson is a board member and consultant, and assists with site selection and advising on CoJJegeville Community projects. Don has extensive experience leading development and planned-giving efforts at major universities. Over the years, he \'lorked in a number of leadership roles at Jowa State University, including Director of Development and Executive Director of the ISU Al.umni Association, Director of the 1SU Achievement Foundation, and Associate Director of Admissions. While at Iowa State, hedeveloped the concept for Green Hills Retiremen.t Village and for the Gateway Center Hotel & Convention Center. Don also worked at Montana State University as President of the MSU Foundation. While at MSU, he also served as President of Advanced Technology Inc., a technology park he developed in 'order to attract hi-tech companies to locate on the IvlSU campus and to work with university faculty and researchers. Richard C. Edwards is an advisor to CollegeviJJe Development Group. Dick is the administrator for Charter House, an internationally renowned continuing-care retirement center in Rochester, Minnesota. Mr. Edwards is recognized v'lorldv'lide as a leader and ed ucator in the field of Service to the Aging. Experience includes: Past Chairman, Minnesota Health and Housing Alliance; Board of Directors, American Association of I lomes and Services for the Aging. MA in Social Services Administration, Case vVestern Reserve University. Thomas J. Petters is a board member and investor. Tom is founder, CEO and president of Petters Companies 1nc. Subsidiaries of Petters Companies include uBid, Fingerhut, Redtagbiz, Petters Consumer Brands, PolaroidElectronics.com and more. Tom manages both distribution and tTading locations yvorldwide, including Europe and Asia, with over $1 billion sales in 2001. 4 @ Collegeville Development Group - Collegeville Communities page 9 30 Thomas Hartmann is a board member. Thomas is a founding partner of McMahon, Hartmann, Amundson & Co. Experience includes: CPO, 911 Emergency Products; Board of Directors, St. Cloud Opportunities; past President, St. Cloud Area Economic Development Partnership and St. Cloud Downtown Association. Numerous business and avocation leadership roles throughout the United States. Chad McKenney is a board member and legal counsel for Collegeville Development Group, LLC. Chad is a founder and managlng partner for Donohue McKenney Thacher & Bergquist, Ltd. Experience includes: Former member, Donahue Rajkowski, Ltd. JD degree, William tvlitchell College of Law; BA, St. Thomas University. J. Michael Podawiltz is a board member. He is CEO of Podawiltz Development Corporation, developing over 4,000 housing units and coordinating over $200 million in financial placements. Experience incllldes: Board member, St. Cloud Area Economic Development Partnership; board member and past Executive Director, St. Cloud Housing & Redevelopment Authority. MA in Public Affairs, lndiana University; tvlA in Public Administration and Bush Leadership FellO\v, Syracuse University. Christopher L. Schellinger is a boa rd member "utd director of project development for Collegeville Development Group. Chris represents a fourth generation of craftsmen and builders in the St. Cloud area. Prior to joining the company, Chris managed diverse manufacturing operations at Woodcraft lndustries and Nahan Printing. He has a BA degree in Business Management from Saint John's University. Don Watkins is a board member. Now retired, Dan's past experience includes: CEO, Tanner Systems. Board member, Bremer Bank; Chairman, St. Cloud State University (SCSU) New Century Campaign; board member: Central Minnesota Community Foundation, SCSU Foundation, Cenh'al Minnesota Council of the Boy Scouts of America and Hill Monastic Manuscript Library. Past Board Trustee, College of Saint Benedict. . John Koneck is a board member for Collegeville Develoflment Group and is a Certified Real Property Law Specialist. John is a shareholder in Fredrickson & Byron's Real Estate Development and Finance client service group, with over 20 years experience in commercial, industrial, sales & acquisition transactions in real estate. John has his law degree from Yale Law School and is a frequent real estate law lecturer, guest writer, and real estate law instructor. A @ Collegeville Development Group - Collegeville Communities page 10 31 THIS PAGE INTENTIONALLY LEFT BLANK JL City of St. Joseph Policy and Procedures for Tax Increment Financing Project For the purpose of this policy, the "EDA" shall also mean the St. Joseph Economic Development Authority, which serves in conducting various economic development, housing and redevelopment programs and activities within the City of St. Joseph. I. GENERAL POLICY The purpose of this policy is to establish the position of the City of St. Joseph and the Economic Development Authority with respect to the use of Tax Increment Financing for private development within the City. This policy shall be used as a guide in the application for, review and consideration of any requests for Tax Increment assistance. The fundamental purpose of tax increment financing in St. Joseph is to encourage desirable development and/or redevelopment that would not otherwise occur "but for" the assistance provided through TIF. The City of St. Joseph and EDA shall consider Tax Increment Financing for projects that serve to accomplish the City's goals for housing and economic development as they may change over time. The goals include facilitating projects that would result in the creation of quality jobs(i.e. stable employment and/or attractive wages and benefits) and the attraction, retention, and expansion of business and housing options in the City. II. CITY's and EDA's OBJECTIVE FOR THE USE OF TIF As a matter of adopted policy, the City of St. Joseph and EDA will consider using tax Increment Financing (TIF) to assist private development projects to achieve one or more of the following purposes: . Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas. . To provide for a balanced and sustainable housing stock to meet diverse needs both today and in the future. . To retain local jobs and/or increase the number and diversity of quality jobs (Le. stable employment andlor attractive wages and benefits. . To encourage additional unsubsidized private development in the area, either directly, or through secondary "spin-off" development. . To offset increased costs of redevelopment (Le. contaminated site clean-up), over and above those costs that a developer would incur in normal urban and suburban development. . To facilitate the development process and to achieve development on sites which would not be developed without this assistance. . To meet other uses of public policy, as adopted by the Council from time to time, including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc. St. Joseph TIF Policy 1 3.3 Ill. COSTS WHICH QUALIFY FOR TIF ASSISTANCE . Project design fees including: utilities, landscape, architectural and engineering design. . Site related work including: permits for site work, earthwork/excavation, soil correction, landscaping, utilities, streets and roads, street/parking lot paving, street/parking lot lighting, curb and gutter, sidewalks . land acquisition . Special assessments . legal fees (acquisition, finance, closing) . Soil tests . Environmental studies . Surveys . Park and open space dedication fees . Interest rate write downs . Relocation assistance . Replacement or clean-up of contaminated soils which would otherwise preclude redevelopment . Rehabilitation . Any other costs allowable by Statute IV. PROJECTS WHICH MAY QUALIFY FOR TIF ASSISTANCE All new TlF projects considered by the City of St. Joseph and EDA must meet each of the following minimum qualifications and will also be evaluated based on their ability to meet the desired qualifications for assistance. However, it should not be presumed that a project meeting any of the qualifications will automatically be approved. Meeting the qualifications creates no contractual rights on the part of any potential developer to have its project approved. MINIMUM QUALFIC,ATIONS 1. The 'project should meet one or more of the Tax Increment Financing Objectives outlined in Section \I of this policy, but at a minimum shall: . Remove blight and/or encourage redevelopment in the commercial and industrial areas of the City in order to encourage high quality development and redevelopment and private investment in those areas. . To facilitate the development process and to achieve development on sites which would not be developed without this assistance. 2. The developer must demonstrate that the project is not financially feasible "but for" the use of T1F assistance. 3. The project must be consistent with the City's Comprehensive Plan, Zoning Ordinances and the EDA's Strategic Plan or require changes to the plan and ordinances must be under active consideration by the City at the time of final TIF application submittal. 4. Prior to approval of a TIF financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil borings, private lender commitment, and/or 2 St. Joseph TIF Policy 3tf + other information the City, EDA or its financial consultants may require in order to proceed with an independent underwriting of the proposal. 5. The developer must provide adequate financial guarantees to ensure the completion of the project. These may include, but not limited to: assessment agreements, letter of credit, personal deficiency guarantees, maximum cost contract, etc. 6. Any developer requesting TIF assistance should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. TIF will not be used when the developer's credentials, in the sole judgement of the City, are inadequate due to past track record relating to: completion of the projects, general reputation and/or bankruptcy, or other problems or issues considered relevant by the City and EDA. 7. The developer'shall retain ownership of the project at least long enough to complete it, to stabilize its occupancy, and to establish the project management and initiate repayment via the TIF assistance. DESIRED QUALlFICA liONS 1. TIF proposals creating a higher ratio of property taxes paid before and after redevelopment will receive priority consideration. Given the different assessment circumstances in the City, this ratio will vary widely. A 1:2 ratio of taxes paid before and after redevelopment is desired. 2. TIF proposals should normally not be used to support speculative industrial, commercial, office or housing projects. In general, the developer should be able to provide market data, tenant letter of commitment or finance statements which support the market potential/demand for the proposed project. 3. TIF will normally not be used in a project that involves an excessive land and/or property price. Thiswill normally be where the acquisition price is more than 20% in excess of the market value as determined by an independent appraisal of the property. 4. TIF will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of tax increment subsidies. Developers should provide information to support that the TIF assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. 5. TIF will be provided on a pay-as-you-go basis. Any request for up front assistance will be evaluated on its own merit in accordance with this policy. Projects requesting pay-as-you-go financing will receive priority consideration. 6. Preference will be given to projects that do not place extraordinary demands on City services. If it is determined by the City's Public Works Director and City Engineer that an extraordinary increase in public service would result because of the project, TIF financing will not be considered. 7. TIF will not normally be used for projects that would generate significant environmental problems in the opinion of the local, state, or federal governments. Priority will be given to project that aim to clean-up existing contaminated sites and would facilitate the location of an industry or business that has an environmentally sound track record, or meet a housing need in the City. St. Joseph TIF Policy 3 jS 8. Preference will be given to projects that meet good public policy criteria as determined by the EDA and City Council, including: . Projects that are in accord with the Comprehensive Plan, Strategic Plan, Zoning Ordinances and other redevelopment plans of the City and EDA, . Projects that provide significant improvement to surrounding land uses, the neighborhood, and/or the City, . Projects that provide a significant increase in tax base, . Projects that provide significant new, or retained employment, . Projects that meet financial feasibility cr.iteria established by the EDA, and . Projects that provide the highest and best desired use for the property. V. TAX INCREMENT PROJECT EVALUATION PROCESS The following five methods of analysis for all TIF proposals will be used: 1. Consideration of project meeting minimum qualifications. 2. Consideration of project meeting desired qualificatic;>ns. 3. Project meets "but for" analysis and statutory qualifications (Exhibit A). 4. Project Report Card (Exhibit B). 5. Project is deemed consistent with the EDA Strategic Plan and the City's Comprehensive Plan. Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case shall one area outweigh another in terms of importance to det~rmining the level of TIF assistance. VI. APPLICATION FOR TIF ASSISTANCE FOR ALL TIF DISTRICTS AND PROJECT AREAS The City's tax increment financing program will be administered by the St. Joseph Economic Development Authority (EDA). The St. Joseph EDA will require a non-refundable application fee in the amount of $2,000 for its processing of the application. The application fee shall be paid to the EDA at the time of final TIF application is submitted. At the time a final TIF application is submitted, the applicant shall also deposit $8,000 with the EDA if the project cost is estimated at $750,000 or less or $15,000 if the project cost is estimated at $750,001 or more, with the EDA to cover its attorney's and consultant's costs incurred as part of amending or establishing a TIF District, drafting and negotiating a development agreement, and conducting and fiscal analysis that may be require to meet the requirements of utilizing TIF. If additional costs are incurred beyond the $15,000, prior to the execution of a development agreement, the EDA shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. If the project is approved and the applicant proceeds with the project, the EDA shall reimburse the applicant any unused portion of the deposit as of the date of execution of the development agreement. If the applicant does not proceed with the project, the EDA shall reimburse the applicant fOr the unused portion of the deposit as of the date that the EDA is notified in writing that the applicant desires to withdraw its application. VII. APPLICATION PROCESS The application process is a two-step process and must be completed in accordance with the TIF application procedures (Exhibit C). The purpose of this approach is to give an applicant the opportunity to present a development proposal without expending a great deal of money and time in pursuing a development that may conflict with the City's and EDA's goals and objectives. St. Joseph TIF Policy 4 310 Attachment B PROPOSED TAX INCREMENT FINANCING Rating & Analysis 1. Ratio of Private to Public Investment in the Project: Private~ $ I, q 3 0 . 700 Private Investment... I q 3(;:, I 7 oD ~__ . J $ ~o3: 300 TIF/Public Investment 3D 3, ?;,t>o 4:1 $ (o~ I Ratio of Private /Public Financing 3:1 2:1 Below 2:1 s'-~ - 4 3 2 1 5 2. Jobs created and/or r N/A K ~d e ue fop, Score: 5 4 3 2 1 obs created/retained 26+ 11-25 6-10 1-5 None Total number of jobs created an a result of the project. 3. Pay Level of Jobs: Score:** tJ/A - - - ~Op. - - - Waee Job Classification *** Average Score: edian wage for the applicable overall job classification in y e Minnesota Workforce Center's most current report. * Median Wage for Job Classifications is defined as th the St. Cloud Metropolitan Statistical Area as identifie **Score Calculation (for each iob classification): I 111 % of median wage for job classification or grearr = 5 101 - 110% of median wage for job classification =r 4 100% of the median wage for job classification = i 90 - 99% of the median wage for job classification = 2 Less than 89% of median wage for job classification = 0 *** The average score of all job classifications shall be used as the overall score for this category. 37 4. Increase in Estimated Market Value: $ 2'1 [7JS; OC[) Estimate market value of site after development $ 350 cruD Estimated market value of site before development I ': b Ratio of value before/after development BefOre/~evelooment--- ~ 1:4 1:3 3 1~ 2 1:1 1 1:<1 0 s 5. Will the proposed project redevelop a previously contaminated or environmentally challenged site; redevelop a blighted or underutilized parcel; or, preserve/promote historical features of existing buildings? / .-0es (5 points) _ No (Zero points) 6. Is the proposed project consistent with the City's long term developmeut and redevelopment guidelines as contained in the City's Comprehensive Plan? ~mu) _ No (Zero points) 7. Does the Developer agree to pay-as-you-go financing? ~ poUlts) _ No (Zero poUlts) CALCULATION OF OVERALL SCORE: 5 Total Points Scored m= average score. .-- S C\. VL6;/X1~ ~ 4= Very Good, 3 = Average, 4 = Below Average, 5 = Fail jg ~. MUNICIPAL DEVELOPMENT GROUP. INC. DATE: April 12,2006 MEMO TO: FROM: RE: Economic Development Authority Cc-'j . Cynthia Smith-Strack Municipal Development Group Downtown Committee - Recommendation and Strategic Plan Background: As you are aware, the S1. Joseph Downtown Committee has been meeting on a monthly basis since July of 2005. The purpose of the Committee was to determine whether or not a comprehensive revitalization effort for the downtown was feasible, how it could be achieved and if enough public support for such a project existed. The purpose of this memo is to inform the EDA that the Downtown Committee intends to formally recommend the City Council proceed with a revitalization effort with the knowledge/understanding that while the City may convene the process, it must quickly be led by the private entities whose time and money will ultimately determine the effort's success. The Downtown Committee has concluded that a healthy, sustained partnership is crucial to getting the revitalization process off the ground and building the critical mass needed to spur a cycle of sustainable development over a period of several years. Following is information describing the review process the Downtown Committee has employed which also comprises the content of the revitalization plan. Also attached to this memo is the strategic plan for revitalization which the Committee has developed and will present to the City Council on March 18th. Visioning The Downtown Committee has completed the following visioning processes: 1. Convened as Downtown Committee to determine if and how to create an identifiable destination area of local and regional interest by promoting a sense of place and ambiance in a united, revitalized and viable core of the City. 2. Conducted technical analysis. Examined/documented: a. The history (narrative and historic photos) of the downtown. b. Previous efforts at revitalization when they were undertaken why they failed. c. The existing dimensions of the downtown. 37 d. Inventory of property/businesses (parcels, lot sizes, addresses, value, condition of existing structures, type of business, business hours, number of employees, plans for expansion/sale/etc., residential units, number of renters) e. Pictorial analysis of the downtown (overall viewsheds, streetscape, architectural types, exterior materials, rooflines, windows, entryways, signs, etc). f. Analysis of public infrastructure (transportation facilities, utilities, sidewalks, street furniture, parks, open space, landscaping, etc.) 3. Conducted subjective analysis. a. Visited other downtowns that had undertaken successful projects. b. Sought and reviewed professional advice/information/research. c. Determined what is valuable, what is missed, what is positive, what is negative about other downtowns and downtown st. Joseph. 4. Considered scope of potential project, project term, strategies/plan for success. 5. Determined whether project is feasible and there is enough private sector and public support for the project. 6. Bring recommendation to City Council to make a definitive decision to proceed with project with the understanding: a. Private sector and at-large public support exists as evidenced by specific findings (e.g. business/property owners, interest in persons to serve on work groups, etc.). b. A strategic plan for downtown revitalization has been developed. c. Initial investment/participation by City is estimated to cost $20,000: i. $2,000: Staff time/project coordination (primarily EDA Director initially) ii. $15,000: Market research study (determine sq. ft. of retail/office space that downtown S1. Joseph could absorb/suPport and determine potential housing market for MF in DT). Iii. $2,500: Landscape architect/design services for DT urban environment renderings and consultation. iv. $500: Initial meetings of work groups: organize, schedule, invite, host at City Hall. d. Midterm investment expected to require approximately $5,000 for project coordination by City staff in 2007 as control/leadership/ownership of the revitalization project is tumed over (from the City) to the private sector and associated work groups which are led by private entities. e. Long-term investment/participation by City is estimated to be $1,000 per year (staff time, coordination, studies, meetings, etc.) with project duration expected at 15 years. f. The estimates above do not include participation incentive/grant programs such as (TIF, tax abatement, revolving loan fund, SCDG application, etc.). tjo 4 Revitalization Plan A copy of the complete strategic plan for downtown revitalization is attached as Exhibit A. Next Steps: If project approved: 1. ,Actively and abundantly inform the public the project is going to proceed, why and hOw. 2. Name the "Project Coordinator" can be a person, position, group or organization. The "Project Coordinator" is responsible for the overall management of the revitalization project. 3. Populate the four work groups. 4. Establish an oversight commission/committeelteam comprised of the "Project Coordinator" and the chair/vice chair of the work groups identified in the revitalization plan (urban environs, resource development, promotions and organizational). . 5. Quickly turn controllleadership/ownership of the revitalization project over (from the City) to the private sector and associated work groups which are led by private entities who will ultimately determine the effort's success. . Action This item is for the EDA's information. Ljl ST. JOSEPH DOWNTOWN REVITALIZATION PLAN st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 5 tfJ I. VISIONING PROCESS 1. Convene Study Group to determine if and how to create an identifiable destination area of local and regional interest by promoting a sense of place and ambiance in a united, revitalized and viable core ofthe City. 2. Conduct technical analysis. Examine/document: A. The history (narrative and historic photos) of the downtown. B. Previous efforts at revitalization when they were undertaken why they failed. C. The existing dimensions of the downtown. . D. Inventory of property/businesses (parcels, lot sizes, addresses, value, condition of existing structures, type of business, business hours, number of employees, plans for expansion/sale/etc., residential units, number of renters) E. Pictorial analysis of the downtown (overall viewsheds, streetscape, architectural types, exterior materials, rooflines, windows, entryways, signs, etc). F. Analysis of public infrastructure (transportation facilities, utilities, sidewalks, street furniture, parks, open space, landscaping, etc.) 3. Conduct subjective analysis. A. Visit other downtowns that have undertaken successful projects. B. Seek and review professional advice/information/research. C. Determine what is valuable, what is missed, what is positive, what is negative about other downtowns and downtown St. Joseph. 4. Consider scope of potential. project, project term, strategies for success. 5. Determine whether project is feasible and there is enough private sector and publiC support for the project. While the City convened the process, it must quickly be led by the private entities whose time and money will ultimately determine the effort's success. A healthy, sustained partnership is crucial to getting the revitalization process off the ground and building the critical mass needed to spur a cycle of sustainable development. Determine whether this exists, potentially by seeing if work groups identified in the strategic plan can be populated. 6. Bring recommendation to City Council to make a definitive decision to either: A. Proceed with project: i. Private sector and at-large public support. exists as evidenced by specific findings (e.g. business/property owners, interest in persons to serve on work groups, etc.). ii. Strategic plan has been developed. iii. Initial investment/participation by City estimated at $20,000 (staff time, coordination, studies, initial meetings, etc.) iv. Midterm investment (2007) estimated to be $5,000. v. Long-term investment/participation by City will be $1,500 (staff time, coordination, studies, meetings, etc.) B. Private sector and at-large public support doesn't exist and the project should not proceed as the risk of failure is greater than the potential beneijt of the project. 5t.Joseph Downtown Revitalization Plan Municipal Development Group. Inc. Page 6 qef II. PROJECT ORGANIZATION (IF PROJECT PROCEEDS). 1. Actively and abundantly inform the public the project is going to proceed, why and how. 2. Name the "Project Coordinator" can be a person, position, group or organization. The "Project Coordinator" is responsible for the overall management of the revitalization project. 3. Populate the four work groups. 4. establish an oversight commission/committeelteam comprised of the "Project Coordinator" and the chair/vice chair of the work groups identified in the revitalization plan (urban environs, resource development, promotions and organizational). 5. Quickly turn control/leadership/ownership of the revitalization project over (from the City) to the private sector and associated work groups which are led by private entities who will ultimately determine the effort's success. 81. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 7 Lje:{ III. DOWNTOWN REVITALIZATION WORK GROUPS A. URBAN ENVIRONS WORK GROUP Goal: Creating a pedestrian-friendly place of destination by planning for corridor aesthetics, streetscape, multiple uses and community gathering spaces. Prospective Members: Members of the public at-large, downtown merchants, design professionals,. City/EDA liaison Tasks associated with implementation of strategic plan: . Determine the boundaries of the downtown and potential anchors for the area. . Determine specifically what the urban environment and associated character should look like develop design criteria such as traditional color palettes, awning styles, uniform signage types/styles, uniform lighting styles, uniform building styles, roof lines, exterior building materials, window styles, entryway styles, etc. . To determine how can to help promote a downtown 'experience' for pedestrians that will be different depending on the time of day, the day of the week, or the s.eason of the year - even if a pedestrian is traveling along a well trod path; how can we provide opportunities for new experiences nearly every time a pedestrian takes to the streets. . To review research regarding public infrastructure; incorporate research into a plant to create/install: 'pocket' park, open space, gathering spaces, street fumiture,/outdoor dining opportunities, etc.; to provide meaningful pedestrian infrastructure such as an interconnected sidewalklwalkway system, areas to gather, opportunities to linger, etc.; to accommodate an expanded public transportation presence in the future; and, to promote structured parking facilities within the downtown (e.g. fee in-lieu of parking proceeds used to establish public parking). . Determine what opportunities exist for housing development within the downtown. . Determine what City rules/regulations need to be changes/amended to legally allow such housing within the downtown. . Work with City staff to inventory city-owned land and buildings that could be available for early development or redevelopment. . Work with Organization Work Group, private/non-profit entities that own property or operate businesses to specifically identify land/buildings that could be available for early development and/or redevelopment. . To determine what opportunities for retail development exist within the Downtown . Research quality of water and sewer laterals within the downtown. . Determine what needs to be done to make sure opportunities for employment within the downtown can happen. . Define and plan for the existence of diverse social values within the downtown and pursue means of enforcing the plan. s1. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 8 !/~ III. DOWNTOWN REVITALIZATION WORK GROUPS B. RESOURCE DEVELOPMENT WORK GROUP Goal: Identify the overall financial needs associated with downtown revitalization (from improving public facilities/amenities to assisting private sector in leveraging funds to capitalizing activities of downtown revitalization work groups) and develop a fund raising plan that supports the revitalization effort. Prospective Members: Members of the community at-large, financial specialists, other professionals, City/EDA liaison Tasks associated with implementation of strategic plan: Tasks associated with implementation of strategic plan: . Identify community initiative grants available through non-profit and state-wide programs for which the S1. Joseph Downtown revitalization initiative will qualify. . Identify local partners interested in contributing financially to downtown revitalization and develop a plan that will enable .Iocal contributors to work together to ensure . optimal benefit from local contributions. . Determine potential sources of public investment to leverage private investment (e.g. tax increment financing, tax abatement, Small Cities Development Program, low interest loan payments, revolving loan fund, revitalization zone, etc.) . Plan, promote and conduct a variety of resource development efforts as a means of capitalizing streetscape amenities and public realm enhancements within the Downtown. . Research opportunities to promote structured parking facilities within the downtown (e.g. fee in-lieu of parking proceeds used to establish public parking). . Determine the need for new organizations to achieve goals necessary (e.g. downtown merchant's association, community foundation). If needed work to establish such organizations. . Define and plan for the existence of diverse social values within the downtown and pursue means of enforcing the plan. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 9 L/7 III. DOWNTOWN REVITALIZATION WORK GROUPS C. PROMOTIONS WORK GROUP Goal: Create/enhance opportunities to bring visitors/tourists to the City of S1. Joseph and to capitalize on activities/events already occurring within the community. Maximize private investment and public ownership of the revitalization process. Prospective Members: Chamber of Commerce, members of the community at-large, Downtown Merchant's Association, marketing professionals, CitylEDA liaison Tasks associated with implementation of strategic plan: . DevelOp a promotional calendar that will benefit downtown. Work with the organizational Work Group to identify annual and future events that S1. Joseph's downtown may benefit from. Consider expanding opportunities for S1. Joseph to showcase itself to S1. Joseph visitors . Create a plan and work with downtown property/business owners to promote unity and cohesiveness as a means of having the downtown property/business owners take ownership of not only their individual property but the entire 'downtown experience' . . Reposition the image of downtown revitalization from neutral or negative to a positive, constructive albeit long-term process. . Communicate the downtown revitalization strategy and progress in implementing the revitalization strategy to the property owners (investors) and the banking community so they will have faith in the process in which they are being asked to invest. . Establish and promote community-wide events and activities which bring visitors and tourists to the City. . Work with other event planners/holders within the community (e.g. College of S1. Benedict; S1. Benedict's Monastery, S1. Cloud Independent School District, Downtown Association, etc.) to coordinate events on an area wide basis, such as a downtown art crawl corresponding to a cultural activity on the college campus. . . Put a human face on the revitalization effort. . Determine what needs to be done to help ensure all stakeholders in the community, civic organizations and community organizations are involved in and/or aware of the process . Work with downtown property owners/downtown merchants to jointly plan special events so as to move from simply co-existing to forming a cohesive, unified force working together to achieve mutual goals. . Work with Organizational Work Group to create "road map" to strengthen the link between the College of S1. Benedict, St. Benedict's Monastery, downtown property owners, adjacent residents, the public at-large and City officials and. provide measurable opportunities for abstract and physical interaction between the aforementioned entities. 81. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 10 L/fd . Research methods to promote continued security and cleanliness in the downtown (e.g. cooperative effort among property owners/stakeholders). . Determine the need for new organizations to achieve goals necessary (e.g. downtown merchant's association, community foundation). If needed work to establish such organizations. . Define and plan for the existence of diverse social values within the downtown and pursue means of enforcing the plan. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 11 tfl III. DOWNTOWN REVITALIZATION WORK GROUPS D. ORGANIZATIONAL WORK GROUP Goal: Establish and continue to strengthen open/active partnerships between business owners, residents, property owners, the Chamber of Commerce, service providers, government entities, . the College and the monastery. Manage and encourage continuous and active discussion and sharing of knowledge between stakeholders in the revitalization process. Prospective Members: Representatives from the public at-large, community/civic organizations, representatives from the College and Monastery, CitylEDA liaisons. Tasks associated with implementation of strategic plan: . Coordinate, host and facilitate meetings with project stakeholders to keep them informed of what is happening. . Work with Urban Environs Work Group, private/non-profit entities that own property or operate busineSses to specifically identify land/buildings that could be available for early development and/or redevelopment. . Keep opinion-makers and others informed about the revitalization process, as the public image of downtown during the early phases of revitalization is generally negative. . Create plans which help ensure the success of the downtown revitalization effort by promoting private/public partnerships - not the other way around. . Determine what needs to be done to help ensure civic and community organizations are involved in and/or aware of the process . Assist in the formation of new organizations to achieve goals (e.g. downtown merchant's association, Resource Development Work Group, community foundation). . Determine how work groups, property owners, residents, civic and non-profit entities, elected/appointed city leaders and others interact to achieve continued and sustained synergy in revitalization efforts. . Ensure citizens, particularly property owners, business owners and residents of surrounding neighborhoods, have continuous opportunities for input and involvement. . Work with the Promotions Work Group to create "road map" to strengthen the link between the College of St. Benedict, St. Benedict's Monastery, downtown property owners, adjacent residents, the publiC at-large and City officials and provide measurable opportunities for abstract and physical interaction between the aforementioned entities. . Determine the need for new organizations to achieve goals necessary (e.g. downtown merchant's association, community foundation). If needed work to establish such organizations. Page 12 St. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. sf) . Determine how to help assure the downtown becomes a place where all members of the community feel welcomed (regardless of age, income, educational attainment, family origin/status, religious beliefs, etc.). . Define and plan for the existence of diverse social values within the downtown and pursue means of enforcing the plan. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 13 5/ IV. DOWNTOWN REVITALIZATION STRATEGIES A. CHARACTER , Goal: Define the boundaries of downtown, how dense it should be, and how it addresses the immediate surrounding neighborhoodS. The downtown 'urban' character is reflected in a density of land use that highest in the city: small lot sizes/widths; building forward/parking rear; no side yard setbacks; no maximum surface coverage limit, building may cover entire lot). If there are less dense neighborhoods surrounding downtown, this can and should be maintained, thus providing those residents with the best of two worlds: 'suburban' homes a short distance from walkable urbanity. Strategies: . Determine the boundaries of the downtown and potential anchors for the area; ./ . Urban Environs Work Group, business/property owners, community at large, City, College, etc. . Determine how to promote a downtown 'experience' for pedestrians that will be different depending on the time of day, the day of the week, or the season of the year - even if a pedestrian is traveling along a well trod path. Determine how to provide opportunities for new experiences nearly every time a pedestrian takes to the streets. ./ Urban Environs Work Group, property owner/business owners, involvement by civic organizations, public input, research, etc. . Research and create a plan to create/install: 'pocket' park, open space, gathering spaces, street fumiture, outdoor dining opportunities, etc.; to provide meaningful pedestrian infrastructure such as an interconnected sidewalklWalkway system, areas to gather, opportunities to linger, etc.; to accommodate an expanded public transportation presence in the future; and, to promote structured parking facilities within the downtown (e.g. fee in-lieu of parking proceeds used to establish public parking). ./ Urban Environs Work Group, property owner/business owners, public input, research, Park Board, landscape architect, etc. . Determine what opportunities exist for housing development within the downtown. ./ Urban Environs Work Group, property owner/business owners, involvement by civic organizations, public input, research, etc. . Determine what City rules/regulations need to be changes/amended to legally allow such housing within the downtown. ./ Ordinance amendments, policy changes, etc. . Work with City staff to inventory city-owned land and buildings that could be available for early development or redevelopment. ./ Urban Environs Work Group, City officials, public input, research, etc. . To determine what opportunities for retail development exist within the Downtown. ./ Urban Environs Work Group, public input, research, professional advice (e.g. research firm). st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 14 32- . Research quality of water and sewer laterals within the downtown. ./' Urban Environs Work Group, research, professional advice (e.g. City Engineer). . Determine what needs to be done to make sure opportunities for employment within the downtown can happen. ./'. Urban Environs Work Group, public input, research, professional advice (e.g. St. Joseph EDA). . Determine specifically what the urban environment and associated character should look like develop design criteria such as traditional color palettes, awning styles, uniform signage types/styles, uniform lighting styles, uniform building styles, roof lines, exterior building materials, window styles, entryway styles, etc. to apply: ./' Urban Environs Work Group, public input, research, professional advice (e.g. landscape architect). 1. Desired Features of Traditional Downtown Buildings: A few buildings in St. Joseph's central business district are two-story buildings with brick fayades and flat roofs, reminiscent of the feel of a traditional "downtown". However, the overall face of the downtown at this time is somewhat stark and haphazard. Although some efforts at historic preservation are evident, for the most part original development looks random in placement, design, materials and style. Deliberate attempts to promote similar facades and a limited color palette could easily improve the area. Along the street there are a few opportunities where similar elevation heights can be developed to relate buildings with one another. For example, facades with similar exterior materials at similar levels (granite, brick, clapboard, etc.) paired with windows of similar shapes at similar heights could begin to blend the surrounding viewshed. Similarly, false-fronting various buildings could reinforce the relationship between one and two story buildings; parapet walls could integrate random rooflines reinforcing the notion of unified development. A "downtown" and its associated character will develop over a period of many years. The following are general guidelines the City may wish to reflect on when reviewing building plans within the Central Business District: . Future buildings in the downtown should be designed to blend in with the existing character. . While architectural style may not be dictated, architecture should promote construction that complements a traditional building fabric. ~-l.r.!7~iJ'/ ...t:!:::..- iA'............I-. . :-i--..,.:.r. · New buildings need not be historic replicas, but should offer high quality and compatible interpretations of the traditional styles present within historic and traditional downtowns. ~"l..-;;:;:c!.:,,'" '114""-":1 I~".";"\l")o""'" 81. Joseph Downtown Revitalization Plan Municipal Development Group,. Inc. Page 15 5~ . Simplify storefronts by using similar siding materials at similar heights (e.g. traditional. masonry materials or granite or brick or clapboard or some combination thereof) to unify the area and bring it back to its historical context. . New buildings should reflect the predominant scale, height, massing and proportions of traditional downtown buildings and existing buildings in close proximity to proppsed infill development. . . Improvements and additions to existing buildings with architectural or historical interest should reinforce and enhance the characteristics of traditional downtown buildings rather than apply new or different stylistic treatments. . In order to reinforce the existing building line and to facilitate pedestrian access and circulation, principal buildings within the downtown should be built to the front property line and shall be oriented so that the front of the building faces the public street. New construction and infill buildings should maintain the alignment of facades along the sidewalk edge. Exceptions may be granted if the setback is pedestrian- oriented and contributes to the quality and character of the streetscape. An example would be for outdoor dining. There are a few parcels where the buildings are setback farther from the street frontage, until such a time when redevelopment occurs and the buildings could be moved forward, perhaps the front yards could be converted to landScaped courtyards to provide gathering places, public displays (e.g. art) and green relief on the street. . Create distinctive character throughout the corridor by employing one style of canopy as opposed to differing styles, types and colors. . Create a historical color palette of a few colors for street facades to unify the downtown businesses. . Encourage signage to be in the same style if hung perpendicular to the facade. . Create a boulevard between the sidewalk and street toallow for tree plantings and grass to separate pedestrians from highway traffic. Use this boulevard to place traffic signs and classical style streetlights. . Make crosswalks visible by using a change is ground texture with either concrete or brick. Another solution would to be to paint crosswalks and supplement with lights to show right of way for pedestrians. 2. Humanscale Design. The pedestrian circulation system should be enhanced by improving sidewalks, adding street furniture/gathering spaces, ornamental lighting, outdoor music, trees, etc. With the existence of a trunk highway the City should st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 16 scf work to minimize the impact of through traffic on the downtown atmosphere. 3. Landscape Design: As the community expands, there is a tendency for commercial development to locate near CSAH 75 and 1-94 rather than in the traditional downtown setting. In order to continue to make the downtown or general business district more inviting, the City should update and maintain landscape design standards as a means of encouraging pedestrian traffic and unique businesses to locate in the area. Landscaping treatments can be used to enhance the pedestrian experience, complement architectural features and/or screen utility areas. The use of flower boxes, planters and hanging flower baskets by individual businesses could be encouraged. 4. Retain Govemment buildings in the Downtown. Governmental, semi-govemmental and institutional services and buildings including City offices, post offices and libraries impact the vitality of a "Downtown" business district and should be encouraged, retained and expanded. 5. Future expansion of the Downtown. The city may wish to identify properties adjacent to the existing downtown that may be acquired in the future for expansion of the downtown. The. current downtown corridor includes a number of businesses interspersed with residential homes. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 17 66 IV. DOWNTOWN REVITALIZATION STRATEGIES B. HOUSING Goal: Housing is two~thirds of the built environment therefore, it is a critical part of the strategy to revitalize a downtown. Commercial development and employment opportunities follow the development of roof~tops. The purpose of this section is to encourage a vast array of . moderate and high density housing at both market rate and affordable levels. Strategies: . Determine what opportunities for housing development exist? .,- Public input and professional market research and advice. . Help to ensure housing is legally allowed within the downtown (revise zoning ordinance SO/50 business to residential mix requirement). .,- City officials/staff. . Inventory city-owned land and buildings that could be available for early development or redevelopment. .,- City staff. . Identify land/buildings that could be available for early development and/or redevelopment. .,- Urban Environs and Organizational Work Groups, public input, propertylbusiness owners, civic/community organizations, City representatives, etc. . What needs to occur to make sure housing development can happen? .,- Ordinance amendments, letting property owners know what options are available, funding source identification. St. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 18 50 IV. DOWNTOWN REVITALIZATION STRATEGIES c. RETAIL Goal: Determine the retail concentrations that a downtown market could support, including urban entertainment (movies, restaurants, night clubs); specialty retail (clothing, furniture, and jewelry boutique stores); regional retail (department stores, lifestyle retail); and local-serving retail (grocery, drug, book, video stores). These different retail options should be concentrated into walkable districts, creating, in essence, regional destinations that give the area critical mass, identity and a reason to live there. Strategies: . Determine what are opportunities for retail development? ,,' Public input and professional market research. and advice. . Determine what needs to occur to make sure it can happen? ,,' Ordinance amendments, letting property owners know what options are available, funding source identification. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 19 57 . IV. DOWNTOWN REVITALIZATION STRATEGIES D. CULTURE Goal: Determine how the link between one-of-a"'kind existing cultural facilities and the downtown can be measurably strengthened and opportunities for abstract and physical interaction opened/facilitated. Strategies: . Create "road map" to strengthen the link between the College of St. Benedict, St. Benedict's Monastery, downtown property owners, adjacent residents, the public at-large and City officials and provide measurable opportunities for abstract and physical interaction between the aforementioned entities. y" Public input, Promotions Work Group and Organizational Work Group, property/business owners, City, etc. . Determine what needs to occur to make sure it can happen? ,( Changes in the physical environment, cooperative interaction between event planners, property owners and public entities. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 20 5f) IV. DOWNTOWN. REVITALIZATION STRATEGIES E. PUBLIC INFRASTRUCTURE ~ Focus on essential issues such as water and sewer, parks and open space, opportunities for gathering/lingering/people watching, transportation (pedestrian, transit, vehicular, truck), structured parking, and enhanced security and cleanliness. Potential funding sources for new/improved infrastructure. . Strategies . Research quality of water and sewer laterals within the downtown. Research opportunities to create/install: 'pocket' park, open space, gathering spaces, street furniture, outdoor dining opportunities, etc. ./' Urban Environs Work Group, Park Board, City Engineer, landscape architect. . Research opportunities to provide meaningful pedestrian infrastructure such as an interconnected sidewalklwalkway system, areas to gather, opportunities to linger, etc. ./' Urban Environs Work Group, Planning Commission, Park Board, . City Engineer, landscape architect. . Research opportunities to accommodate an expanded public transportation presence in the future. ./' Urban Environs Work Group, MTC, City Engineer, etc. . Research opportunities to promote structured parking facilities within the downtown (e.g. fee in-lieu of parking proceeds used to establish public parking). ./' Urban Environs Work Group, Resource Development Work Group, Planning Commission, City Engineer, landscape architect. . Research methods to promote continued security and cleanliness in the downtown (e.g. cooperative effort among property owners/stakeholders). ./' Promotions Work Group, public input, College of Sf. Benedict, st. Benedict's Monastery, downtown property owners, adjacent residents, the public at-large and City officials and Organizational Work Group. . Determine what is needed to make this occur? ./' Changes in the physical environment, identification of funding sources, cooperative interaction between properly owners and public entities. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 21 fir IV. DOWNTOWN REVITALIZATION STRATEGIES F. EMPLOYMENT Goal: Focus recruitment efforts on businesses that could be downtown, which includes both "export" employment (businesses that export goods and services from the area which provide fresh cash into the economy) and regional-servicing employment (support businesses or organizations which locate in regional concentrations such as downtown). Generally these strategies occur later in the turn-around process, after a critical mass of urban entertainment and housing has occurred. Strategies: . Determine what needs to occur to make sure opportunities for employment within the downtown can happen? ,f Economic development authority and city staff continue to reach out to potential business leads, conduct retention and expansion visits with existing businesses and identify/promote funding sources/available financial incentives. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 22 (pO IV. DOWNTOWN REVITALIZATION STRATEGIES G. COMMUNITY INVOLVEMENT Goals: Work to encourage all members of the community are involved in the downtown effort and/or knowledgeable of the ongoing downtown revitalization project. Promote ownership of the project communitywide. Work to make the downtown beComes a source of community pride. Strategies: . According to a research brief from the well-respected non-profit, community based think-tank The Brookings Institute, successful downtown revitalizations are generally private/public partnerships - not the other way around. While the public sector usually lead by the mayor or some other public official may convene the strategy process, it must quickly be led by the private entities whose time and money will ultimately determine the effort's success. A healthy, sustained partnership is crucial to getting the revitalization process off the ground and building the critical mass needed to spur a cycle of sustainable development. Therefore, the downtown revitalization effort must help ensure citizens, particularly property owners, business owners and residents of surrounding neighborhoods, have continuous opportunities for input and involvement. ,( Organizational Work Group, Promotions Work Group, public, business owners, property owners, CBD residents, College, Monastery, etc. . Keep opinion-makers and others informed about the revitalization process, as the public image of downtown during the early phases of revitalization is generally negative. Put a human face on the revitalization effort. ,( Promotions Work Group. . . Determine what needs to occur to make sure all stakeholders in the community are involved in and/or aware of the process? ,( Organizational Work Group and Promotions Work Group coordinate and facilitate a variety of opportunities/events to allow input from various stakeholders including, but not limited to: property owners, City officials, non-profit organizations and the general public. St. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 23 (PI IV. DOWNTOWN REVITALIZATION STRATEGIES H. INVOLVEMENT OF NON-PROFIT ORGANIZATIONS Goal: Bring existing non-profits into the process and create new organizations to fill needed roles, including but not limited to: business organizations, temporary task forces, events/arts coordinating group and others. Strategies: . Determine what needs to occur to make sure civic and community organizations are involved in and/or aware of the process. ./' Promotions Work Group and Organizational Work Group coordinate and facilitate a variety of opportunities/events to allow input from various stakeholders including, but not limited to: property owners, City officials, non-profit organizations and the general public. . Determine the need for new organizations to achieve goals necessary (e.g. downtown merchant's association, community foundation). If needed work to establish such organizations. ./' Resource Development Work Group, Organizational Work Group, Promotions Work Group to research and coordinate as needed. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. fot Page 24 IV. DOWNTOWN REVITALIZATION STRATEGIES I.. MARKETING Goals: Continuously market the downtown as a place of destination and specific new downtown events. . Strategies: . Reposition the image of downtown revitalization from neutral or negative to a positive, constructive albeit long-term process. ,/ Promotions Work Group. . Communicate the downtown revitalization strategy and progress in implementing the revitalization strategy to the property owners (investors) and the banking community so they will have faith in the process in which they are being asked to invest. ./' Promotions Work Group. . Determine how can the downtown work groups, property owners, residents; civic and non-profit entities, elected/appointed city leaders and others can interact to achieve synergy in revitalization efforts. ,/ Organizational Work Group, Promotions Work Group, coordinate and facilitate a variety of opportunities/events to allow interaction between stakeholder groups. 81. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. Page 25 (;3 IV. DOWNTOWN REVIT!'LIZATION STRATEGIES J. SOCIAL VALUES Goals: Help ensure the revitalized downtown becomes a gathering place for the entire community where all persons regardless of age, income, educational attainment, family origin/status, race, ethnicity, religious beliefs, etc. feel welcomed. Strategies: . Define and plan for the existence of diverse social values within the downtown and pursue means of enforcing the plan. ./ Urban Environs Work Group, Resource Development Work Group, Promotions Work Group, Organizational Work Group coordinate and facilitate a variety of opportunities/events to allow interaction between all members of the community. · How can we best remind ourselves of this goal as. we develop and implement a strategy for downtown revitalization? ./ Organizational Work Group, Promotional Work Group. st. Joseph Downtown Revitalization Plan Municipal Development Group, Inc. b'Y Page 26 www.cityofstjoseph.com CITY OF ST. JOSEPH Date: May 10, 2006 Administrator Judy Weyrens Memo To: Mayor Richard Car1bo1RE: Memo From: EDA Board Members Joanne Foust and Cyn~~mith-Strack, Municipal Development Group 2005 Business Subsidy Reporting Councilors AI R Background: aS~ier Cities with populations over 2,500 are required to submit annual reports to the Department of Ross Rieke Employment and Economic Development detailing the status of local business 'subsidies' issued. Renee SymanietzThe reports are due by April 15t of each year. Dale Wick MDG, Inc. has completed the annual busines~ subsidy report for fiscal year 2005. A copy of the report is attached. Both of the existing projects for which financial assistance by the City were provided have met the joblwage goals specified in the agreement. Therefore, the attached report notes no new business subsidies were issued in 2005 and those previously issued have met job/wage goals. Action: This item is for information only. b6 2)" College Avenue North. PO Box 668 . Saint. Joseph. Minnesota )"6)74 Phone ,20.,6,.7201 Fax 120.,6,.0,42 Minnesota Business Assistance Form - Print Form Page 1 of 1 Grantor Name is: City of St. Joseph Date Finalized: 511012006 12:16:00 PM Grantor 10: 5450 Section 1 Grantor Information 1. Name of grantor (funding entity): City of St. Joseph 2. Name of person completing this form: Cynthia Smith-Strack 3. Street Address: 25 College Avenue North 4. City: St. Joseph 5. Zip code: 563740668 6. County: Steams 7. Phone number: 9527587399 9. E-mail address:cstrack@municipaldevelopmentgroup.com 10. Is the person who should receive the MBAF different from the person in Question 2? No 11. Classification of grantor (If grantor is entity created by government agency, please indicate affiliation. For example, a city EDA would check "City Government."): City government 12. Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn. Stat. ~116J.994? : Yes, prior to 2006 Hearing Date: 1012111999 Year Criteria Submitted: 2000 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31, 2005, unless goals have been achieved and reported in a previous filed MBAF that is required to be reported under Minn. Stat. ~116J.993 and ~116J.994?: No Section 5 - Recipients Failing to Fulfill Obligations 33. During the period January 1, 2005 through December 31, 2005, did your organization have any recipients who failed to report as required by Minn. Stat. ~116J.993 and ~116J.994? No 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1, 2005, "that were required to be fulfilled by the time of this report? No (Ph https://www.deed.state.mn.us/sec/mbaf/printreport.asp 5/1 0/2006 DATE: MEMO TO: FROM: RE: Background: .. MUNICIPAL DEVELOPMENT GROUP, INC. April 12,2006 Economic Development Authority Cynthia Smith-Strack Municipal Development Group Director's Report. The Director's Report will be distributed prior to the EDA meeting. 61