HomeMy WebLinkAbout05_17_22_EDA packetCITY OF ST. JOSEPH
www.cityofstjoseph.com
75 Callaway Street East | Saint Joseph, Minnesota 56374
Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342
St. Joseph Economic Development Authority May 17th, 2022 12:00 PM 75 Callaway St E (St. Joseph City Hall) ** The meeting will also be offered remotely via Zoom**
1.Call to order
2. Public Comments
3. Approve Agenda
4. Consent Agendaa. Minutes – Requested Action: Approve the minutes of April 19th, 2022
b. Financial Report –MAR AND APRIL
5.Tax Abatement – Trobec’s
6.Mobile Food Vendor Ordinance
7.JR Mobile update
8. Business/Development, EDA priorities
9.Board Member Announcements
10. Adjourn
Zoom Meeting Information
Join Zoom Meeting
https://us06web.zoom.us/j/89347556498?pwd=TTc4SGh4V3Y1bFBPSmI3SHlXOGhJZz09
Meeting ID: 893 4755 6498
Passcode: 707356
One tap mobile
+13126266799,,89347556498#,,,,*707356# US (Chicago)
+19292056099,,89347556498#,,,,*707356# US (New York)
1
April 19th, 2022 Page 1 of 2
Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority met on Tuesday, April 19th, 2022 at 12:00 PM. Members Present: Board Members Kevin Kluesner, Rick Schultz, Joe Bye, Dale Wick Members Absent: Larry Hosch
City Representatives Present: Community Development Director Nate Keller, City Administrator Therese Haffner Schultz called the St. Joseph Economic Development Authority meeting to order at 12:00 PM Public Comments Joe Walz updated the EDA on potentially switching realtors for the Gateway development area. Agenda Approval: Kluesner made a motion to approve the agenda as presented; seconded by Wick and passed unanimously by those present.
Consent Agenda: Kluesner made a motion to approve the consent agenda as follows; seconded by Bye and passed unanimously by those present. a. Minutes - Approve the minutes of March 15th, 2022 BFA Grant – La Playette Keller provided an overview of the proposed Façade work and grant submittal by La Playette. Shawn
Riesner (applicant) also provided an overview of the project, timeline, and intent. Kluesner made a motion to approve a matching grant of up to $2,000; seconded by Wick and passed unanimously by those present. Tax Abatement – Concept feedback
Keller outlined a potential Tax Abatement project and introduced Tim Dolan who is the consultant working with the client on the project. Mr. Dolan provided an overview of the project. The project would provide 20-35 well-paid white-collar jobs (accounting, I.T., customer service, HR related functions) with room for growth in the next 2-5 years. Project completion would likely occur Q2 in 2023. No deviation from city
building standards is expected (building would be masonry/steel with appropriate landscaping). Explore MN Grant A brief overview of the Explore MN grant was provided by Keller. Explore MN provided the CVB with up to $7,500 in dollar to dollar matching funds for the grant. Due to limited funds in the CVB budget the CVB cannot match the entire grant. The ask is that the EDA match $4,000 of the grant. The grant match would
go to items like: Wobegon trailhead sign and printed maps. Quarterly initiatives with area CVB’s St. Cloud and Little Falls (next one would be Joyful June), and website enhancements. Questions were asked on the value of printed maps. Keller responded that Bruno would be handing the
maps out at the “Midwest Travel Conference” and other events along with providing copies to local businesses and at the trailhead. Questions were still asked regarding the value of the printed maps.
Members also questioned the accuracy of the map. Keller will send out a PDF copy of the map via email to EDA members and ask that members provide any feedback prior to the maps being printed. Kluesner made a motion to support matching the grant $1 to $1 up to $4,000 seconded by Schultz. Wick voted nay. Motion passes 3-1. JR Mobile update Staff is working with the new owner. Permits are expected to be applied for soon to begin interior
demolition work. Schultz stressed the importance of seeing some progress at the site through strict deadlines considering Council direction.
2
April 19th, 2022 Page 2 of 2
Business/Development, EDA priorities Keller provided updates on: Distillery, Trobec’s, discussion by the Planning Commission regarding event venues within rural areas, DEED Brownfields conference, GSDC Innovation awards, GSDC email list, Retention Visit with Estates B&B and Woodcrest, East Park Grant and boutique hotel discussions. Board Member Announcements None Adjourn: Wick made a motion to adjourn the meeting at 12:51 PM, seconded by Kluesner and passed unanimously by those present. Nate Keller Community Development Director
3
EDA Agenda Item 4b
________________________ MEETING DATE: May 17, 2022
AGENDA ITEM: March/April Finance Reports SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: N/A PREVIOUS EDA ACTION: None BACKGROUND INFORMATION: Enclosed you will find the reconciled financial reports through April 30, 2022. The ending undesignated
balance shows a surplus of $48,190. The designated project balance is $25,623 for economic
development programs. The designation for capital programs includes the 2022 budget. The budget is
paid for with tax proceeds. Taxes are received in June, July and December. The EDA approved using
program funds with a match grant from the State to update the CVB website. The invoice was paid and
submitted to the State for reimbursement of their match.
The other funds reported include the TIF funds, Lodging Tax, DEED CDAP Grant reimbursement and the
Revolving Loan fund. There are three revolving loans to Krewe and Flour to Flower Bakery; St. Joseph
Food Co-Op; and Jupiter Moon Ice Cream. The current revolving loan fund balance is $397,985 on
April 30th, including $377,054 reserved balance from the EDA fund to be used for future economic
development projects; $20,932 is available from the State’s RLF fund for future loan requests.
The Lodging Tax fund has a balance of $15,881 on April 30th. A summary of their activity is enclosed in
this report. The orange highlights are dependent upon the CVB collecting sponsorship fees. The
sponsorship fees were not moved forward for 2022, so the supported orange highlighted expenditures
are not funded. Hats and t-shirts are being sold at the MN Street Market. The Co-op remits sales
proceeds monthly. City staff is monitoring the sales and inventory monthly.
BUDGET/FISCAL IMPACT: For Information Only ATTACHMENTS: EDA Financial Summary EDA Balance Sheet EDA Revenue Report EDA Expenditure Report EDA Summary CIP
CVB Financial Summary REQUESTED BOARD ACTION: Consider acceptance of the March and April financial reports.
4
05/04/22 3:22 PM
EDA Balance Sheet
City of St. Joseph Page 1
Current Period: April 2022
FUND Descr Account Descr Begin Yr YTDDebit YTDCredit CurrentBalance
FUND 150 Economic Development
Economic Development G 150-10100 Cash $82,443.78 $10,671.42 $28,102.23 $65,012.97
Economic Development G 150-10450 Interest Receivable $347.24 $0.00 $347.24 $0.00
Economic Development G 150-10500 Accounts Receivable $265.00 $0.00 $265.00 $0.00
Economic Development G 150-10700 Taxes Receivable - Delinquen $597.94 $0.00 $597.94 $0.00
Economic Development G 150-13113 Due From other Gov t Units $6,406.42 $0.00 $6,406.42 $0.00
Economic Development G 150-15500 Due From Other Fund $8,800.00 $0.00 $0.00 $8,800.00
Economic Development G 150-20200 Accounts Payable -$6,337.11 $6,337.11 $0.00 $0.00
Economic Development G 150-20201 Salaries Payable -$718.83 $718.83 $0.00 $0.00
Economic Development G 150-22204 Deferred Inflow of Resources -$597.94 $597.94 $0.00 $0.00
Economic Development G 150-24415 Design. Fd Bal - Operations $0.00 $0.00 $0.00 $0.00
Economic Development G 150-25310 Unassigned Fund Balance -$91,206.50 $35,120.89 $17,727.36 -$73,812.97
$0.00 $53,446.19 $53,446.19 $0.00FUND 150 Economic Development
FUND 153 TIF 4-1 Fortitude Senior Apts
TIF 4-1 Fortitude Senior G 153-10100 Cash $16,793.60 $0.00 $441.76 $16,351.84
TIF 4-1 Fortitude Senior G 153-10450 Interest Receivable $41.54 $0.00 $41.54 $0.00
TIF 4-1 Fortitude Senior G 153-10500 Accounts Receivable $0.00 $0.00 $0.00 $0.00
TIF 4-1 Fortitude Senior G 153-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00
TIF 4-1 Fortitude Senior G 153-20500 Due To Other Fund $0.00 $0.00 $0.00 $0.00
TIF 4-1 Fortitude Senior G 153-25310 Unassigned Fund Balance -$16,835.14 $483.30 $0.00 -$16,351.84
$0.00 $483.30 $483.30 $0.00FUND 153 TIF 4-1 Fortitude Senior Apts
FUND 157 TIF 2-1 Millstream
TIF 2-1 Millstream G 157-10100 Cash $36,109.62 $0.00 $966.85 $35,142.77
TIF 2-1 Millstream G 157-10450 Interest Receivable $101.75 $0.00 $101.75 $0.00
TIF 2-1 Millstream G 157-10500 Accounts Receivable $0.00 $0.00 $0.00 $0.00
TIF 2-1 Millstream G 157-13113 Due From other Gov t Units $0.00 $0.00 $0.00 $0.00
TIF 2-1 Millstream G 157-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00
TIF 2-1 Millstream G 157-25310 Unassigned Fund Balance -$36,211.37 $1,068.60 $0.00 -$35,142.77
$0.00 $1,068.60 $1,068.60 $0.00FUND 157 TIF 2-1 Millstream
FUND 159 TIF 2-3 Bayou Blues/Alley Flat
TIF 2-3 Bayou Blues/All G 159-10100 Cash $341.99 $0.13 $1,031.00 -$688.88
TIF 2-3 Bayou Blues/All G 159-10450 Interest Receivable $12.21 $0.00 $12.21 $0.00
TIF 2-3 Bayou Blues/All G 159-13113 Due From other Gov t Units $0.00 $0.00 $0.00 $0.00
TIF 2-3 Bayou Blues/All G 159-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00
TIF 2-3 Bayou Blues/All G 159-20500 Due To Other Fund -$8,800.00 $0.00 $0.00 -$8,800.00
TIF 2-3 Bayou Blues/All G 159-25310 Unassigned Fund Balance $8,445.80 $1,043.21 $0.13 $9,488.88
$0.00 $1,043.34 $1,043.34 $0.00FUND 159 TIF 2-3 Bayou Blues/Alley Flat
FUND 220 Lodging Tax
Lodging Tax G 220-10100 Cash $20,513.02 $3,228.23 $7,860.37 $15,880.88
Lodging Tax G 220-10450 Interest Receivable $55.61 $0.00 $55.61 $0.00
Lodging Tax G 220-10500 Accounts Receivable $808.92 $0.00 $808.92 $0.00
Lodging Tax G 220-20200 Accounts Payable -$76.50 $76.50 $0.00 $0.00
Lodging Tax G 220-25310 Unassigned Fund Balance -$21,301.05 $8,724.90 $3,304.73 -$15,880.88
$0.00 $12,029.63 $12,029.63 $0.00FUND 220 Lodging Tax
FUND 225 DEED CDAP Grant
DEED CDAP Grant G 225-10100 Cash $43,061.59 $2,273.72 $1,170.47 $44,164.84
DEED CDAP Grant G 225-10450 Interest Receivable $131.60 $0.00 $131.60 $0.00
DEED CDAP Grant G 225-25310 Unassigned Fund Balance -$43,193.19 $1,302.07 $2,273.72 -$44,164.84
5
FUND Descr Account Descr Begin Yr YTDDebit YTDCredit CurrentBalance
Page 2
05/04/22 3:22 PM
EDA Balance Sheet
City of St. Joseph
Current Period: April 2022
$0.00 $3,575.79 $3,575.79 $0.00FUND 225 DEED CDAP Grant
FUND 250 Revolving Loan Fund
Revolving Loan Fund G 250-10100 Cash $402,926.68 $4,848.58 $9,789.84 $397,985.42
Revolving Loan Fund G 250-10450 Interest Receivable $626.60 $0.00 $626.60 $0.00
Revolving Loan Fund G 250-11900 Notes Receivable $67,430.15 $0.00 $67,430.15 $0.00
Revolving Loan Fund G 250-11910 Note Interest Receivable $35.29 $0.00 $35.29 $0.00
Revolving Loan Fund G 250-20200 Accounts Payable $0.00 $0.00 $0.00 $0.00
Revolving Loan Fund G 250-22204 Deferred Inflow of Resources -$67,210.43 $67,210.43 $0.00 $0.00
Revolving Loan Fund G 250-24415 Design. Fd Bal - Operations -$377,053.91 $0.00 $0.00 -$377,053.91
Revolving Loan Fund G 250-25310 Unassigned Fund Balance -$26,754.38 $10,671.45 $4,848.58 -$20,931.51
$0.00 $82,730.46 $82,730.46 $0.00FUND 250 Revolving Loan Fund
$0.00 $154,377.31 $154,377.31 $0.00
6
2022 Capital Expenditures
General Fund Capital Improvement Plan ‐ EDA
EDA Recommended: August 17, 2021
Adopted December 6, 2021
12/31/2021
Available through 4/30 through 4/30
Project Project Reserve Budget Grants/Aids Spent 2022
Department Account Code Number Equipment Balance 2022 2022 2022 Balance
EDA 150-46500-582 EDA-1401 Computer Software 2,806.74 500.00 3,306.74
EDA 150-46500-588 EDA-1402 Business Development 524.00 25,000.00 3,208.20 22,315.80
RLF 250-46500-588 EDA-1402 Business Development 377,053.91 ‐ 377,053.91
377,577.91 25,000.00 ‐ 3,208.20 399,369.71
TOTAL EDA CIP 380,384.65 25,500.00 ‐ 3,208.20 402,676.45
7
05/04/22 3:23 PM
EDA Expenditure Report
City of St. Joseph Page 1
Current Period: April 2022
Account Descr 2022YTD Budget April2022 Amt 2022YTD Amt
FUND 150 Economic Development
E 150-46500-101 Salaries $32,985.00 $2,526.06 $9,466.52
E 150-46500-103 Legislative Bodies $1,050.00 $245.00 $245.00
E 150-46500-121 PERA Contributions $2,475.00 $189.46 $710.01
E 150-46500-122 FICA Contributions $2,000.00 $155.10 $581.85
E 150-46500-123 Deferred Comp-Employer $455.00 $17.50 $70.00
E 150-46500-125 Medicare Contributions $465.00 $36.28 $136.09
E 150-46500-130 H S A- Employer Contribution $790.00 $0.00 $393.75
E 150-46500-131 Health Insurance $5,670.00 $416.06 $1,664.24
E 150-46500-132 Dental Insurance $445.00 $27.78 $111.12
E 150-46500-133 Life Insurance $30.00 $2.33 $9.32
E 150-46500-134 Disabilty Insurance $280.00 $22.30 $89.20
E 150-46500-151 Workers Comp. Insur. Prem. $190.00 $0.00 $0.00
E 150-46500-171 Clothing Allowance $0.00 $0.00 -$11.00
E 150-46500-200 Office Supplies $300.00 $54.91 $68.91
E 150-46500-215 Software Support $1,455.00 $14.70 $1,307.49
E 150-46500-300 Professional Services $1,000.00 $0.00 $0.00
E 150-46500-303 Engineering Fee $1,000.00 $0.00 $0.00
E 150-46500-304 Legal Fees $1,000.00 $0.00 $0.00
E 150-46500-308 Community Programs $0.00 $0.00 $0.00
E 150-46500-321 Telephone $1,720.00 $115.71 $458.15
E 150-46500-322 Postage $100.00 $0.00 $0.00
E 150-46500-328 Marketing $1,000.00 $0.00 $500.00
E 150-46500-331 Travel & Conference Expense $1,400.00 $0.00 $215.00
E 150-46500-340 Advertising $0.00 $0.00 $0.00
E 150-46500-420 Depreciation $0.00 $0.00 $0.00
E 150-46500-433 Dues & Memberships $5,295.00 $0.00 $0.00
E 150-46500-582 Computer Software $500.00 $0.00 $0.00
E 150-46500-588 EDA Programs $25,000.00 $3,151.20 $2,151.20
E 150-46500-622 TIF/Abatement Payments $35,000.00 $0.00 $0.00
E 150-49300-720 Transfers to Other Funds $4,000.00 $0.00 $0.00
$125,605.00 $6,974.39 $18,166.85FUND 150 Economic Development
FUND 153 TIF 4-1 Fortitude Senior Apts
E 153-46500-300 Professional Services $1,000.00 $0.00 $0.00
E 153-46500-306 County TIF Admin Fee $0.00 $0.00 $0.00
E 153-46500-340 Advertising $55.00 $0.00 $0.00
E 153-46500-588 EDA Programs $0.00 $0.00 $0.00
E 153-46500-622 TIF/Abatement Payments $0.00 $0.00 $0.00
E 153-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00
$1,055.00 $0.00 $0.00FUND 153 TIF 4-1 Fortitude Senior Apts
FUND 157 TIF 2-1 Millstream
E 157-46500-300 Professional Services $1,000.00 $0.00 $0.00
E 157-46500-301 Audit & Accounting Services $0.00 $0.00 $0.00
E 157-46500-306 County TIF Admin Fee $0.00 $0.00 $0.00
E 157-46500-340 Advertising $55.00 $0.00 $0.00
E 157-46500-622 TIF/Abatement Payments $0.00 $0.00 $0.00
E 157-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00
$1,055.00 $0.00 $0.00FUND 157 TIF 2-1 Millstream
FUND 159 TIF 2-3 Bayou Blues/Alley Flat
E 159-46500-300 Professional Services $1,000.00 $0.00 $1,000.00
8
Account Descr 2022YTD Budget April2022 Amt 2022YTD Amt
Page 2
05/04/22 3:23 PM
EDA Expenditure Report
City of St. Joseph
Current Period: April 2022
E 159-46500-301 Audit & Accounting Services $0.00 $0.00 $0.00
E 159-46500-306 County TIF Admin Fee $0.00 $0.00 $0.00
E 159-46500-340 Advertising $55.00 $0.00 $0.00
E 159-46500-622 TIF/Abatement Payments $0.00 $0.00 $0.00
E 159-49300-720 Transfers to Other Funds $0.00 $0.00 $0.00
$1,055.00 $0.00 $1,000.00FUND 159 TIF 2-3 Bayou Blues/Alley Flat
FUND 220 Lodging Tax
E 220-46500-300 Professional Services $9,000.00 $750.00 $3,750.00
E 220-46500-309 Visitors Bureau $9,745.00 $0.00 $1,054.00
E 220-46500-328 Marketing $3,500.00 $0.00 $2,466.17
E 220-46500-331 Travel & Conference Expense $0.00 $0.00 $0.00
E 220-46500-340 Advertising $1,555.00 $0.00 $0.00
$23,800.00 $750.00 $7,270.17FUND 220 Lodging Tax
FUND 225 DEED CDAP Grant
E 225-46500-300 Professional Services $0.00 $0.00 $0.00
E 225-46500-340 Advertising $0.00 $0.00 $0.00
E 225-46500-431 Annexation/Recording Fee $0.00 $0.00 $0.00
$0.00 $0.00 $0.00FUND 225 DEED CDAP Grant
FUND 250 Revolving Loan Fund
E 250-46500-300 Professional Services $0.00 $0.00 $0.00
E 250-46500-304 Legal Fees $0.00 $0.00 $0.00
E 250-46500-317 Other fees $0.00 $0.00 $0.00
E 250-46500-434 Certification Fee $0.00 $0.00 $0.00
E 250-46500-455 Revolving Loan Proceeds $0.00 $0.00 $0.00
$0.00 $0.00 $0.00FUND 250 Revolving Loan Fund
$152,570.00 $7,724.39 $26,437.02
9
St. Joseph Economic Development Authority
Summary Treasurer's Report - Fund 150
April 2022
Fund 150, EDA Balance as of December 31, 2021 (Unaudited)91,206.50
Year to Date Revenue:Budget YTD Actual
Interest Earnings 1,020 (3,226.68)
TIF/MIF Deposit - 4,000.00
DEED Housing Federal Grant Proceeds - -
Abatement Reimbursement (School District)9,385 -
Ad Valorem Taxes 119,905 -
Total Revenue 130,310 773.32
Year to Date Expenditures by Object:
Board Stipends 1,050 (245.00)
Staff Salaries/Training 51,390 (13,436.10)
Workers Comp Premium 190 -
Software Support/Office Supplies 1,755 (1,376.40)
Professional Services 1,000 -
Legal/Engineering Fees 2,000 -
Telephone 1,720 (458.15)
Greater St. Cloud Development Investment 5,000 -
Advertising - -
Marketing 1,000 (500.00)
Abatement Payments (Country Manor)35,000 -
CM Housing Grant Reimbursement - -
Computers 500 -
EDA Programs 25,000 (2,151.20)
Transfer to Other Funds - -
Total Expenses 125,605 (18,166.85)
Fund Summaries as of April 30, 2022:
EDA Fund Balance - Fund 150 - unaudited, cash balance 73,812.97
Designated for Capital Programs 25,622.54
Undesignated 48,190.43
TIF 4-1 Fortitude Senior Apts Fund Balance - Fund 153 16,351.84
TIF 2-1 Millstream Shops and Lofts Fund Balance - Fund 157 35,142.77
TIF 2-3 Bayou Blues & Alley Flats Fund Balance - Fund 159 (9,488.88)
Lodging Tax Fund Balance - Fund 220 15,880.88
DEED CDAP Grant Fund Balance - Fund 225 44,164.84
Revolving Loan Fund Balance - Fund 250 397,985.42
Designated for Revolving Loan Program 20,931.51
Designated for Economic Development 377,053.91
10
05/04/22 3:23 PM
EDA Revenue Report
City of St. Joseph Page 1
Current Period: April 2022
Account Descr SOURC 2022YTD Budget April2022 Amt 2022YTD Amt
FUND 150 Economic Development
R 150-46500-31010 Current Ad Valorem Taxes 31010 $115,220.00 $0.00 $0.00
R 150-46500-33160 Federal Grants - Other 33160 $0.00 $0.00 $0.00
R 150-46500-33430 Other Grants/Aids 33430 $0.00 $0.00 $0.00
R 150-46500-34150 TIF/Abatement Deposit 34150 $0.00 $2,500.00 $2,500.00
R 150-46500-34155 TIF/Abatement Fee 34155 $0.00 $1,500.00 $1,500.00
R 150-46500-34160 Tax Abatement Reimbursement 34160 $9,385.00 $0.00 $0.00
R 150-46500-36210 Interest Earnings 36210 $1,000.00 -$567.47 -$3,226.68
R 150-49302-36260 Surplus Property 36260 $0.00 $0.00 $0.00
R 150-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00
$125,605.00 $3,432.53 $773.32FUND 150 Economic Development
FUND 153 TIF 4-1 Fortitude Senior Apts
R 153-46500-31050 Tax Increment 31050 $0.00 $0.00 $0.00
R 153-46500-34150 TIF/Abatement Deposit 34150 $0.00 $0.00 $0.00
R 153-46500-36210 Interest Earnings 36210 $100.00 -$127.45 -$483.30
R 153-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00
$100.00 -$127.45 -$483.30FUND 153 TIF 4-1 Fortitude Senior Apts
FUND 157 TIF 2-1 Millstream
R 157-46500-31050 Tax Increment 31050 $0.00 $0.00 $0.00
R 157-46500-36210 Interest Earnings 36210 $250.00 -$273.91 -$1,068.60
$250.00 -$273.91 -$1,068.60FUND 157 TIF 2-1 Millstream
FUND 159 TIF 2-3 Bayou Blues/Alley Flat
R 159-46500-31050 Tax Increment 31050 $0.00 $0.00 $0.00
R 159-46500-36210 Interest Earnings 36210 $100.00 $0.13 -$43.08
R 159-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00
$100.00 $0.13 -$43.08FUND 159 TIF 2-3 Bayou Blues/Alley Flat
FUND 220 Lodging Tax
R 220-46500-31600 Lodging Tax 31600 $14,000.00 $1,395.65 $2,288.06
R 220-46500-33400 State Grants and Aids 33400 $0.00 $0.00 $0.00
R 220-46500-34406 Sponsorship Fee 34406 $4,000.00 $0.00 $0.00
R 220-46500-34409 Marketing 34409 $1,500.00 $93.75 $131.25
R 220-46500-36210 Interest Earnings 36210 $300.00 -$132.60 -$569.31
R 220-46500-36230 Contributions - General 36230 $0.00 $0.00 $0.00
R 220-49302-39201 Transfers from Other Funds 39201 $4,000.00 $0.00 $0.00
$23,800.00 $1,356.80 $1,850.00FUND 220 Lodging Tax
FUND 225 DEED CDAP Grant
R 225-46500-34200 DEED Housing Reimbursement 34200 $0.00 $0.00 $2,273.72
R 225-46500-36210 Interest Earnings 36210 $300.00 -$332.37 -$1,302.07
R 225-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00
$300.00 -$332.37 $971.65FUND 225 DEED CDAP Grant
FUND 250 Revolving Loan Fund
R 250-46500-36210 Interest Earnings 36210 $1,500.00 -$3,082.38 -$10,416.44
R 250-49302-39201 Transfers from Other Funds 39201 $0.00 $0.00 $0.00
R 250-46500-39320 Loan Principal 39320 $12,665.00 $1,043.01 $3,975.84
R 250-46500-39321 Loan Interest 39321 $1,720.00 $160.71 $617.73
R 250-46500-39322 Loan Origination Fee 39322 $0.00 $0.00 $0.00
$15,885.00 -$1,878.66 -$5,822.87FUND 250 Revolving Loan Fund
11
Account Descr SOURC 2022YTD Budget April2022 Amt 2022YTD Amt
Page 2
05/04/22 3:23 PM
EDA Revenue Report
City of St. Joseph
Current Period: April 2022
$166,040.00 $2,177.07 -$3,822.88
12
CVB 2022 Financial Summary
As of April 30, 2022
Beginning Fund Balance 1‐1‐22 (audited)21,301.05$
Budget YTD Rev
Customer 2022 2022
Interest Earnings 300.00$ (569.31)$
T‐shirt/Hats/Merchandise Sales 1,500.00 225.00
Sponsorship dues 4,000.00
EDA Transfer ‐ Sponsorship Match 4,000.00
Rodeway Inn Lodging Tax 10,000.00 1,891.76
CSB Lodging Tax 3,300.00 ‐
Estates B&B Lodging Tax 700.00 396.30
23,800.00$ 1,943.75$
Budget YTD Exp
Vendor 2022 2022
Professional Services ‐ Manage Social Media (Bruno Press)9,000.00$ 3,750.00$
Visitor's Bureau ‐ Rubinski Works ‐ Videos 2,100.00 ‐
Visitor's Bureau ‐ Rubinski Works ‐ Videos 300.00
Visitor's Bureau ‐ Website/Joetownmn.com Hosting 1,745.00 622.75
Visitor's Bureau ‐ Shop Small/Winterwalk Postcards 500.00
Visitor's Bureau ‐ Photos 10.00
Visitors Bureau ‐ Photo Contest Prizes 190.00 190.00
Visitor's Bureau ‐ Bike Racks 1,000.00
Visitor's Bureau ‐ Wobegon Trailhead Maps/Signage**2,900.00
Marketing ‐ Additional with Sponsorship Fees 2,000.00
Marketing ‐ SHRPA ‐
Marketing ‐ Feel The Love Campaign 1,000.00 1,000.00
Marketing ‐ Merchandise Sales (Krillan/Rambow)1,500.00 346.17
Advertise ‐ Think Tourism USA 775.00 775.00
Advertise ‐ MN Trails Magazine 580.00 680.00
Advertise ‐ Newcomer Service Magazine 200.00
23,800.00$ 7,363.92$
Ending Cash Balance 4‐30‐22 15,880.88$
** Propose trailhead sign to be paid for with fund 390 ‐ balance from City welcome signs project
13
EDA Agenda Items 6-8
MEETING DATE: May 17th, 2022 AGENDA ITEM:
6. Mobile Food Vendor Ordinance 7. JR Mobile update 8. Business/Development, EDA priorities PREVIOUS BOARD ACTION: 6- none 7- previous verbal updates provided BACKGROUND INFORMATION:
6 – Mobile Food Vendor Ordinance The city has received a request to allow a Mobile Food Truck that exceeds the allowable length of twenty-five (25’) feet. Staff would like general discussion on this portion of the ordinance and the ordinance as a whole. The EDA reviewed the original ordinance when it was adopted. 7 – JR Mobile update
Staff will provide verbal update 9 - Business Development, EDA priorities update – Staff will provide verbal update. BUDGET/FISCAL IMPACT: ATTACHMENTS:
Mobile Food Vendor ordinance REQUESTED BOARD ACTION:
6 – direction and discussion
14
CHAPTER VI – GENERAL REGULATIONS
615-0
ORDINANCE 615 PORTABLE CONFECTIONERY STORES AND MOBILE FOOD
VENDORS ................................................................................................................. 615-1
Section 615.01: DEFINITIONS...................................................................................... 615-1 Section 615.02: PERMIT AND LICENSES REQUIRED ............................................. 615-1 Section 615.03: APPLICATION FOR PERMIT ............................................................ 615-1 Section 615.04: PERMIT FEES; TRANSFERABILITY ............................................... 615-2
Section 615.05: TERM OF PERMIT ............................................................................. 615-2
Section 615.06: INSURANCE........................................................................................ 615-2 Section 615.07: SOUND DEVICES ............................................................................... 615-2 Section 615.08: SALES WHILE IN MOTION .............................................................. 615-3 Section 615.09: FOOD TRUCK OR MOBILE FOOD VENDOR OPERATIONS ....... 615-3
Section 615.10: FOOD TRUCK OR MOBILE FOOD VENDOR LOCATION ........... 615-3
15
CHAPTER VI – GENERAL REGULATIONS
615-1
ORDINANCE 615 PORTABLE CONFECTIONERY STORES AND MOBILE FOOD
VENDORS
Section 615.01: DEFINITIONS. For the purposes of this ordinance, the following words
and phrases shall have these designated meanings: Subd. 1: Confectionary. A “confectionery food product” is defined as but not limited to, ice milk, ice cream, candy and popcorn.
Subd. 2: Portable Confectionary Store. A vehicle, regardless of the manner in which it is propelled, for transporting prepackaged confectionery food products, in the vehicle, for the purpose of selling such food products form such vehicle.
Subd. 3: Food Truck or Mobile Food Vendor. A vehicle who prepares and sells food
from a properly licensed vehicle eligible to operate on private property for a specified period of time. Section 615.02: PERMIT AND LICENSES REQUIRED.
Subd. 1. Permit Required. No person shall use, conduct or operate in the City a portable confectionery store or mobile food vendor or food truck without having obtained a permit from the City.
Subd. 2. Exemption. This Chapter shall not apply to those motor vehicles used
exclusively for the regular delivery of fluid milk and related dairy products to homes. This chapter shall also not apply to temporary food truck or portable confectionery stores for specific community events.
Section 615.03: APPLICATION FOR PERMIT.
Subd. 1. Form. An application for a permit shall be submitted to the City on forms prepared by the City.
Subd. 2. Required Information: The applicant shall file with the application such
information as will clearly establish the times and the places where the applicant desires to operate such portable stores or mobile food vendors/food truck; shall describe the physical characteristics of such portable stores or mobile food vendors/food truck; shall describe the wares to be sold and any other information the City may require.
16
CHAPTER VI – GENERAL REGULATIONS
615-2
Subd. 3. Submission: Each application for a permit required hereunder shall be submitted to the City.
Subd. 4. Each mobile food vendors/food truck shall not receive a permit under this section who has not first received a license from the State and/or County Health Department authorizing such food preparation and sales. Any conditions of the State Health Department shall be incorporated into the license issued under this Section, in addition to any other conditions
imposed by the City of St. Joseph.
Subd. 5. Issuance: Permits shall not be issued if the administration finds that the health, welfare or safety of the public will be endangered by the operation of a portable confectionery store or mobile food vendors/food truck.
Subd. 6. Each vehicle shall have current license plates, pass any required DOT inspections and contain a current certified fire extinguisher as required. Section 615.04: PERMIT FEES; TRANSFERABILITY.
Subd. 1. Fee. The fee for each permit shall be established by Council resolution and: a. There shall be no prorating or refunding of permit fees, nor shall a permit be transferable.
b. A separate permit shall be required of each portable confectionery store or mobile food vendors/food truck regardless of ownership. Section 615.05: TERM OF PERMIT. All permits issued hereunder shall expire January
1 of each year.
Section 615.06: INSURANCE. Subd.1. Liability Insurance Required: The applicant shall carry a general policy of
liability insurance in which the City is named coinsured which shall provide a limit of coverage
of not less than three hundred thousand dollars/one hundred thousand dollars ($300,000.00/$100,000.00) for bodily injury and twenty five thousand dollars ($25,000.00) for property damage.
Subd. 2. Notice of Cancellation: The insurance policy required by this Section shall
further provide that no cancellation of said insurance policy, for any cause, may be made by the insured or the insurance company without first giving thirty (30) days’ notice to the City, in writing, of the intention to cancel. Such notice shall be addressed to the City by registered mail or shall be delivered to the City personally.
Section 615.07: SOUND DEVICES. No person operating a portable confectionery store shall shout, make any cryout, blow a horn, ring a bell or use any sound device, including any loud speaking radio or sound amplifying system upon any of the streets, alleys, parks or other
17
CHAPTER VI – GENERAL REGULATIONS
615-3
public places of the City or upon any private premises in the City where sound of sufficient volume is emitted or produced therefrom to be capable of being plainly heard upon the streets,
avenues, alleys, parks or public places, for the purpose of attracting attention to any goods, wares
or merchandise which such permittee proposes to sell, unless prior approval with conditions are received from the City Administrator. Section 615.08: SALES WHILE IN MOTION. At no time shall any sales be made from
a portable confectionery store or food truck while it is in motion.
Section 615.09: FOOD TRUCK OR MOBILE FOOD VENDOR OPERATIONS. No external signage, other than such signage directly attached to the vehicle, may be utilized.
Subd. 1. No external seating may be utilized.
Subd. 2. No other equipment may be utilized that is not fully contained within the vehicle.
Subd. 3. Any generator in use must be self-contained and fully screened from view.
Subd. 4. Operations shall be limited to the number of days indicated on the applicant’s State License.
Subd. 5. Applicant shall provide waste disposal for litter and garbage generated by the
operation of the Food Truck or Vehicle, and shall clean all such litter and garbage before moving from the location. Subd. 6. The Food Truck or Vehicle shall obey the orders of any traffic control officer,
peace officer, or inspector, and shall be open to inspection during all open hours.
Subd. 7. Vehicle size shall not exceed ten (10) feet in height, nor twenty five (25) feet in length.
Subd. 8. Hours of operation shall occur from 7:00 AM and 11:00 PM
Subd. 9. There shall be no overnight parking of food trucks on public right of way. Section 615.10: FOOD TRUCK OR MOBILE FOOD VENDOR LOCATION.
Subd. 1. Properly licensed Food Truck or Mobile Food Vendor may operate on eligible public streets when occupying no more than two parallel parking spaces. Subd. 2. In no cases, may a Food Truck or Vehicle operate in a traffic lane, on a
sidewalk, or in any location, which causes an obstruction to traffic.
18
CHAPTER VI – GENERAL REGULATIONS
615-4
Subd. 3. No Food Truck or Vehicle may operate on a public street within fifty (50) feet of the intersection of two streets or within thirty (30) feet of the intersection of a public street and
private driveway opening.
Subd. 4. A Food Truck or Vehicle may operate within a parking lot with written permission of the property owner/s or owner’s authorized representative.
Subd. 5. No food truck shall operate within 50 feet of an existing restaurant located
within the city. Subd. 6. The City Council may approve other locations on a temporary basis.
Created 4/2016
19
EDA Agenda Item 5
________________________ MEETING DATE: May 17, 2022
AGENDA ITEM: Tax Abatement and Business Subsidy Request SUBMITTED BY: Administration/Finance PREVIOUS EDA ACTION: EDA recommended approval of a tax abatement plan for Trobec Bus Service, Inc. in 2019 in the amount of $367,000 over 7-years with the city retaining 25% of the taxes each year. City council agreed to a new term of 7-years with 100% of the tax abatement paid each year. BACKGROUND INFORMATION: Trobec’s construction plans got delayed until 2022. Construction costs have escalated and a few years of the tax abatement were not received. Instead of
losing needed tax abatement, Trobec’s applied for a new abatement agreement with rescinding the 2019 agreement. The gap requested has increased to $676,220 (city portion only). With a new agreement at a higher dollar amount, a new public hearing is needed.
Attached is the new tax abatement agreement, project map, and summary of the estimated annual tax abatement. The School District will consider at their May 18th board meeting. The project proposed
includes the following items. o 108,060 square foot facility: bus storage, offices, garage space, wash bay
o Includes paved parking o Construction commence 6/7/22, substantial completion by 10/1/22 o Create 5 new full-time jobs, minimum wage of $40,000 annually plus benefits
o Create 15 new part-time jobs, minimum $16.00 per hour plus benefits The City of St. Joseph will consider the abatement and business subsidy based on the increase in tax base and jobs created. The City portion includes $676,220 aggregate abatement over 7 years through 2031 – 100% city’s share real estate taxes.
Based on the gap needed, the tax abatement request is considered a business subsidy. By city policy,
the EDA reviews business subsidies with recommendations to City Council to approve or deny the
request. The City Council will hold a public hearing and consider the EDAs recommendation for the
request. The Council will consider calling for a June 6th public hearing at their May 16th meeting.
BUDGET/FISCAL IMPACT: $676,220 ATTACHMENTS: City Tax Abatement Agreement Proposal Project Map Estimated Tax Abatement Schedule REQUESTED BOARD ACTION: Consider a recommendation for City Council to approve the Trobec Bus Service, Inc. tax abatement and business subsidy plan as presented.
20
21
73373431v1
TAX ABATEMENT AGREEMENT
BY AND BETWEEN
CITY OF ST. JOSEPH, MINNESOTA
AND
TROBEC BUS SERVICE, INC.
This instrument drafted by:
Taft Stettinius & Hollister LLP (MLI) 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402
(612) 977-8400
22
73373431v1
TABLE OF CONTENTS
Page
-i-
ARTICLE I DEFINITIONS ................................................................................................. 2 Section 1.1 Definitions............................................................................................ 2
ARTICLE II REPRESENTATIONS AND WARRANTIES................................................ 4
Section 2.1 Representations and Warranties of the City ......................................... 4
Section 2.2 Representations and Warranties of the Developer ............................... 4
ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY ....................................... 6 Section 3.1 Construction of Project; Reimbursement of Tax Abatement Property Cost; Legal and Administrative Expenses ............................ 6
Section 3.2 Limitations on Undertaking of the City ............................................... 6
Section 3.3 Business Subsidies Act ........................................................................ 6 Section 3.4 Damage and Destruction ...................................................................... 8 Section 3.5 Change in Use of Project ..................................................................... 8 Section 3.6 Transfer the Project and Assignment of Agreement ............................ 8
Section 3.7 Real Property Taxes ............................................................................. 8
Section 3.8 Duration of Abatement Program .......................................................... 9
ARTICLE IV EVENTS OF DEFAULT ............................................................................... 10 Section 4.1 Events of Default Defined ................................................................. 10 Section 4.2 Remedies on Default .......................................................................... 10
Section 4.3 No Remedy Exclusive........................................................................ 10
Section 4.4 No Implied Waiver ............................................................................ 11 Section 4.5 Agreement to Pay Attorney’s Fees and Expenses ............................. 11 Section 4.6 Release and Indemnification Covenants ............................................ 11
ARTICLE V ADDITIONAL PROVISIONS ...................................................................... 12
Section 5.1 Conflicts of Interest............................................................................ 12
Section 5.2 Titles of Articles and Sections ........................................................... 12 Section 5.3 Notices and Demands ........................................................................ 12 Section 5.4 Counterparts ....................................................................................... 12 Section 5.5 Law Governing .................................................................................. 13
Section 5.6 Term ................................................................................................... 13
Section 5.7 Provisions Surviving Rescission or Expiration.................................. 13
EXHIBIT A DESCRIPTION OF TAX ABATEMENT PROPERTY ............................. A-1
23
73373431v1
TAX ABATEMENT AGREEMENT
THIS AGREEMENT, made as of the ____ day of _____________, 2022 ("Effective
Date"), by and between the City of St. Joseph, Minnesota (the “City”), a municipal corporation
organized and existing under the laws of the State of Minnesota, and Trobec Bus Service, Inc., a Minnesota corporation (the “Developer”).
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Sections 469.1812 through 469.1816, as
amended, the City has established a Tax Abatement Program; and
WHEREAS, the City believes that the development and construction of a certain Project (as defined herein), and fulfillment of this Agreement are vital and are in the best interests of the City, will result in preservation and enhancement of the tax base, provide employment opportunities and are in accordance with the public purpose and provisions of the applicable state
and local laws and requirements under which the Project has been undertaken and is being
assisted; and
WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995, apply to this Agreement; and
WHEREAS, the City Council has approved this Agreement as a subsidy agreement under
the Business Subsidy Law; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows:
24
73373431v1
2
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context:
Agreement means this Tax Abatement Agreement, as the same may be from time to time modified, amended or supplemented;
Benefit Date means the earlier of the date the Project is completed or the date on which
the Project is placed in service;
City means the City of St. Joseph, Minnesota;
County means Stearns County, Minnesota;
Developer means Trobec Bus Service, Inc., a Minnesota corporation, its successors and
assigns;
Event of Default means any of the events described in Section 4.1;
Legal and Administrative Expenses means the fees or expenses incurred by the City in connection with the preparation of this Agreement and the establishment of the Tax Abatement Program;
Project means the acquisition, construction and equipping by the Developer of
construction of an approximate 108,060 square foot facility for bus storage, offices, garage space, wash bay and paved parking located in the City’s new industrial park to be located on the Tax Abatement Property;
State means the State of Minnesota;
School District means the St. Cloud Area School District #742, Steans County,
Minnesota
Tax Abatement Act means Minnesota Statutes, Sections 469.1812 through 469.1816, as amended;
Tax Abatement Program means the actions by the City pursuant to Minnesota Statutes,
Section 469.1812 through 469.1816, as amended, and undertaken in support of the Project;
Tax Abatement Property means the real property described on Exhibit A attached hereto;
Tax Abatements means 100% of the City's share of real estate taxes derived from the Tax Abatement Property, abated in accordance with the Tax Abatement Program and this Agreement in an aggregate amount of $676,220;
25
73373431v1
3
Term means the period in which this Agreement shall remain in effect, commencing on the Effective Date and continuing until the earlier of (i) the date the Developer receives the
Reimbursement Amount (as defined herein), or (ii) February 1, 2031 unless earlier terminated or
rescinded in accordance with the terms contained herein;
Unavoidable Delays means delays, outside the control of the party claiming its occurrence, including strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by
injunction or other similar judicial action or by the exercise of reasonable discretion, directly
results in delays, or acts of any federal, state or local governmental unit (other than the City, the County or the School District) which directly result in delays.
26
73373431v1
4
ARTICLE II
REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations and Warranties of the City. The City makes the following representations and warranties:
(1) The City is a municipal corporation and political subdivision of the State and has the power to enter into this Agreement and carry out its obligations hereunder.
(2) The Tax Abatement Program was created, adopted and approved in accordance
with the terms of the Tax Abatement Act.
(3) To finance the costs of the Project to be undertaken by the Developer, the City proposes, subject to the further provisions of this Agreement, to apply the Tax Abatements to reimburse the Developer for a portion of the costs of the Project as further provided in this
Agreement.
(4) The City has made the findings required by the Tax Abatement Act for the Tax Abatement Program.
Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties:
(1) The Developer has the power to enter into this Agreement and to perform its
obligations hereunder and is not in violation of its organizational documents, member control agreement or any local, state or federal laws.
(2) The Developer is a Minnesota corporation, duly organized, existing and in good standing under the laws of the State and has the power to enter into this Agreement and to
perform its obligations hereunder and carry out the covenants contained herein.
(3) The Developer will cause the Project to be constructed in accordance with the terms of this Agreement and all City, County, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations), including the Americans With Disabilities Act.
(4) The Developer will obtain or cause to be obtained, in a timely manner, all
required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed.
(5) The construction of the Project would not be undertaken by the Developer, and in
the opinion of the Developer would not be economically feasible within the reasonably
foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement.
27
73373431v1
5
(6) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing.
(7) The Developer will cooperate fully with the City with respect to any litigation
commenced with respect to the Project.
(8) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project.
(9) The construction of the Project shall commence no later than June 7, 2022 and
barring Unavoidable Delays, will be substantially completed by October 1, 2022.
28
73373431v1
6
ARTICLE III
UNDERTAKINGS BY DEVELOPER AND CITY
Section 3.1 Construction of Project; Reimbursement of Tax Abatement Property Cost; Legal and Administrative Expenses.
(1) The Developer agrees that it will construct the Project, in accordance with the terms of this Agreement and in compliance with all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, energy conservation, building code and
public health laws and regulations). The Developer will obtain or cause to be obtained, in a timely manner (subject to factors outside the control of Developer), all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be
lawfully constructed. The Developer will, at all times prior to the termination of this Agreement,
operate and maintain, preserve and keep the Project or cause the Project to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition, ordinary wear and tear excepted.
(2) Upon submission to the City of invoices relating to the cost of the construction of
the Project in an amount not less than $676,220 (the “Reimbursement Amount”), the City shall
reimburse the Developer for such costs pursuant to the Abatement Program as provided in Section 3.7.
(3) The Developer shall reimburse the City for its actual out of pocket Legal and Administrative Expenses.
Section 3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of
Section 3.1, the City shall have no obligation to the Developer, under this Agreement, to reimburse the Developer for a portion of the construction of the Project, if the City, at the time or times such payment is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Notwithstanding
any other provisions of the Agreement, the City shall have no obligation to the Developer under
this Agreement to reimburse the Developer for the construction of the Project in an amount greater than $676,220.
Section 3.3 Business Subsidies Act.
(1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to
116J.995 (the “Business Subsidies Act”), the Developer acknowledges and agrees that the
amount of the “Business Subsidy” granted to the Developer under this Agreement is the amount of the Tax Abatements paid to the Developer shall not exceed $676,220, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to create new jobs
and to increase the tax base in the City. The Developer will meet the following goals (the
“Goals”): create at least five (5) new full-time jobs upon completion of the Project at a minimum wage of $40,000 annually, plus benefits and create at least fifteen (15) new part-time
29
73373431v1
7
jobs upon completion of the Project at an hourly wage of at least $16.00 per hour, plus benefits within two years from the Benefit Date.
(2) If none of the Goals are met by the Developer, the Developer agrees to repay all
of the Business Subsidy to the City, plus interest (“Interest”) set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part by the Developer, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying
the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals
which were not retained or created at the wage level set forth above and the denominator of which is twenty (20) (i.e. number of jobs set forth in the Goals).
(3) The Developer agrees to (i) report the Developer’s progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date,
or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report
the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year for the previous year, commencing March 1, 2023, and within 30 days after
the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will
mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000.
(4) The Developer agrees to continue operation of the Project for the Term of this
Agreement. If the Developer fails to meet the requirement to operate the Project in accordance with this Section 3.7(4) hereof, the Developer shall repay the City a pro rata share of the Business Subsidy plus Interest calculated as follows: one hundred twenty (120) less the number of months of operation of the Project (where any month in which the facility is in operation for at
least fifteen (15) days constitutes a month of operation), commencing on the date of the
certificate of completion and ending with the date the Project ceases operation as determined by the City, divided by one hundred twenty (120).
(5) As of the date of this Agreement, in addition to the City, the School District is providing financial assistance for the Project.
(6) There is no parent corporation of the Developer.
(7) The Developer certifies that it does not appear on the Minnesota Department of Employment and Economic Development’s list of developers that have failed to meet the terms of a business subsidy agreement.
(8) The Developer understands and agrees that if it fails to meet the Goals or operate
the Facility in accordance with Section 3.7(4) hereof, it may not receive a business subsidy from
the City or any other grantor (as defined in the Business Subsidy Act) for a period of five (5)
30
73373431v1
8
years from the date of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs first.
Section 3.4 Damage and Destruction. In the event of damage or destruction of the
Project that (i) Developer chooses not to repair or rebuild, or (ii) Developer does not commence and diligently pursue such repair or rebuilding within one hundred eighty (180) days after such event of damage or destruction, City may, with written notice to Developer, terminate this Agreement and discontinue such Tax Abatement Program for the Project as of the date of such
event of damage or destruction.
Section 3.5 Change in Use of Project. The City’s obligations pursuant to this Agreement shall be subject to the continued operation of the Project by the Developer, or any successors or assigns of Developer approved by City as set forth in Section 3.6 below, during the Term.
Section 3.6 Transfer the Project and Assignment of Agreement. The Developer
represents and agrees that prior to the expiration or earlier termination of this Agreement the
Developer shall not assign this Agreement in conjunction with a transfer of the Project or any part thereof or any interest therein, without the prior written approval of the City, which approval shall not be unreasonably withheld, conditioned or delayed. The City shall be entitled to require as conditions to any such approval that:
(1) Any proposed transferee shall have the qualifications and financial responsibility,
in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer.
(2) Any proposed transferee, by instrument in writing reasonably satisfactory to the City shall, for itself and its successors and assigns, and expressly for the benefit of the City, have
expressly assumed all of the obligations of the Developer under this Agreement and agreed to be
subject to all the conditions and restrictions to which the Developer is subject.
The City shall provide Developer with written approval or denial within thirty (30) days of Developer's request therefor. In the event of a transfer of the Project to a transferee approved by City, Developer shall be released from liability hereunder after the date of such transfer, and
City shall look solely to such transferee to fulfill the obligation of Developer hereunder.
Section 3.7 Real Property Taxes. The Developer shall, so long as this Agreement remains in effect, pay all real property taxes with respect to all parts of the Tax Abatement Property owned by it which are payable pursuant to any statutory or contractual duty that shall accrue until title to the property is vested in another person. The Developer agrees that for tax
assessments so long as this Agreement remains in effect:
(a) It will not challenge the market value of the Tax Abatement Property with any governmental entities.
(b) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real
property contained on the Tax Abatement Property determined by any tax official to be
applicable to the Project or the Developer or raise the inapplicability of any such tax
31
73373431v1
9
statute as a defense in any proceedings with respect to the Tax Abatement Property, including delinquent tax proceedings; provided, however, “tax statute” does not include
any local ordinance or resolution levying a tax;
(c) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Tax Abatement Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in
any proceedings, including delinquent tax proceedings with respect to the Tax Abatement
Property; provided, however, “tax statute” does not include any local ordinance or resolution levying a tax;
(d) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.181, or any other State or
federal law, of the ad valorem property taxation of the Tax Abatement Property so long
as this Agreement remains in effect.
Section 3.8 Duration of Abatement Program. The Tax Abatement Program shall exist for a period of up to seven (7) years beginning with real estate taxes payable in 2024 through 2030. On or before February 1 and August 1 of each year commencing August 1, 2024 until the
earlier of the date that the Developer shall have received the Reimbursement Amount or
February 1, 2031 the City shall pay the Developer the amount of the Tax Abatements received by the City in the previous six month period. The City may terminate the Tax Abatement Program and this Agreement at an earlier date if an Event of Default occurs and is not cured as provided herein and the City rescinds or cancels this Agreement as more fully set forth in Article
IV herein.
32
73373431v1
10
ARTICLE IV
EVENTS OF DEFAULT
Section 4.1 Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean whenever it is used in this
Agreement any one or more of the following events:
(1) Failure by the Developer to timely pay any ad valorem real property taxes, special assessments, utility charges or other governmental impositions with respect to the Project.
(2) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement.
(3) Failure by the Developer to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement.
(4) The holder of any mortgage on the Tax Abatement Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents.
Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section
4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty (30) days’ written notice to the Developer citing with specificity the item or items of default and notifying the Developer that it has thirty (30) days within which to cure said Event of Default (or commence and diligently pursue such Event of
Default if Developer is unable to cure within such thirty (30) day period and Developer is
diligently pursuing and can demonstrate progress toward curing the default). If the Developer is unable to cure or commence a cure for the Event of Default within said thirty (30) days as required above:
(a) The City may suspend its performance under this Agreement until it
receives assurances from the Developer, deemed adequate by the City, that the Developer
will cure its default and continue its performance under this Agreement.
(b) The City may cancel and rescind this Agreement.
(c) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and
observance of any obligation, agreement, or covenant of the Developer under this
Agreement.
Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
33
73373431v1
11
exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof but any such right and power may be exercised from
time to time and as often as may be deemed expedient.
Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 4.5 Agreement to Pay Attorney’s Fees and Expenses. Whenever any Event of
Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that they shall, on demand herefore, pay to the City the reasonable fees of such attorneys and such
other expenses so incurred by the City.
Section 4.6 Release and Indemnification Covenants.
(1) The Developer releases from and covenants and agrees that the City and its governing body members, officers, agents, servants and employees shall not be liable for and agrees to indemnify and hold harmless the City and its governing body members, officers,
agents, servants, and employees against any loss or damage to property or any injury to or death
of any person occurring at or about or resulting from any defect in the Project.
(2) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Developer agrees to protect and defend the City and its governing body members, officers, agents, servants and employees, now or forever, and further
agrees to hold the aforesaid harmless from any claim, demand, action or other proceeding
whatsoever by any person or entity whatsoever arising or purportedly arising from a breach of the obligations of the Developer under this Agreement, or the transactions contemplated hereby or the acquisition, construction, ownership, maintenance and operation of the Project.
(3) The City and its governing body members, officers, agents, servants and
employees shall not be liable for any damages or injury to the persons or property of the
Developer or its officers, agents, servants or employees or any other person who may be about the Project due to any act of negligence of any person.
(4) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City and not of any governing body member, officer, agent, servant or
employee of the City in the individual capacity thereof.
34
73373431v1
12
ARTICLE V
ADDITIONAL PROVISIONS
Section 5.1 Conflicts of Interest. No member of the governing body or other official of the City shall participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be
personally liable to the City in the event of any default or breach by the Developer or successor
or on any obligations under the terms of this Agreement.
Section 5.2 Titles of Articles and Sections. Any titles of the several parts, articles and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions.
Section 5.3 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and
(1) in the case of the Developer is addressed to or delivered personally to:
Trobec Bus Service, Inc.
413 County Road 2 St. Stephen, MN 56375 ATTN: Bethany Schubert, Vice President
(2) in the case of the City is addressed to or delivered personally to the City at:
City of St. Joseph St. Joseph City Hall 75 Callaway St. E. St. Joseph, MN 56374
(3) with a copy addressed to or delivered personally to:
Mary L. Ippel Taft Stettinius & Hollister LLP 2200 IDS Center 80 South 8th Street
Minneapolis, Minnesota 55402
or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section.
Section 5.4 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
35
73373431v1
13
Section 5.5 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota.
Section 5.6 Term. This Agreement shall remain in effect commencing on the Effective
Date until the earlier of (i) the date the Developer receives the Reimbursement Amount, or (ii) February 1, 2031, unless earlier terminated or rescinded in accordance with its terms.
Section 5.7 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out
of any event, occurrence or circumstance existing prior to the date thereof.
36
73373431v1
S-1
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf, and the Developer has caused this Agreement to be duly executed in its
name and on its behalf, on or as of the date first above written.
TROBEC BUS SERVICE, INC., a Minnesota corporation
By:
Tim Schubert Its: CEO and President
By:
Bethany Schubert Its: Vice President
This is a signature page to the Tax Abatement Agreement by and between the City of St. Joseph,
Minnesota and Trobec Bus Service, Inc.
37
73373431v1
S-2
CITY OF ST. JOSEPH, MINNESOTA
By
Richard Schultz
Its Mayor By
Therese Haffner
Its Administrator
This is a signature page to the Tax Abatement Agreement by and between the City of St. Joseph, Minnesota and Trobec Bus Service, Inc.
38
73373431v1
A-1
EXHIBIT A
DESCRIPTION OF TAX ABATEMENT PROPERTY
Legal Description of Property:
Lot 2, Block 1, Northland Business Center 2nd Addition, according to the plat and survey thereof, now on file and of record in the office of Stearns County Recorder
39
Final Proposed for Consideration
CITY SCHOOL TOTAL
COMBINED
Term
Tax
Payable
Year
Total TMV
TMV Subject
to Tax
Abatement
Total Tax
Capacity
Tax Capacity
Subject to
Tax
Abatement
(100%)
City Tax
Rate
School Tax
Rate
Annual Tax
Abatement
Annual Tax
Abatement
Annual Tax
Abatement
1 2024 7,658,185 7,658,185 152,414 152,414 61.50% 25.08% 93,730 38,225 131,955
2 2025 7,734,767 7,734,767 153,945 153,945 61.50% 25.08% 94,671 38,609 133,281
3 2026 7,812,115 7,812,115 155,492 155,492 61.50% 25.08% 95,623 38,997 134,620
4 2027 7,890,236 7,890,236 157,055 157,055 61.50% 25.08% 96,584 39,389 135,973
5 2028 7,969,138 7,969,138 158,633 158,633 61.50% 25.08% 97,554 39,785 137,339
6 2029 8,048,829 8,048,829 160,227 160,227 61.50% 25.08% 98,534 40,185 138,719
7 2030 8,129,318 8,129,318 161,836 161,836 61.50% 25.08% 99,524 40,589 140,113
TOTAL NOT TO EXCEED AMOUNT 676,220 275,780 952,000
Assumptions:
1. Annual increase in Taxable Market Value (TMV):1.0%
2. Tax rates are based on pay 2022 and are assumed to be constant over term.
City Portion 676,220
School Portion 275,780
Total Tax Abatement 952,000
4. Construction is assumed to commence in 2022 for first taxes payable in 2024.
3. Agreement with property owner to limit the total tax abatement provided to the actual semi-annual City and School District taxes
collected from the Property up to the following total not to exceed amounts for a maximum 7 year term:
All Figures are Estimated
City of St. Joseph, MN
Tax Abatement for Development in Industrial Park
TAX RATES
Based on Rescinding Adopted Tax Abatement and Approving New Resolutions
5/3/2022 40