HomeMy WebLinkAbout04_16_24_EDA packet CITY OF ST. JOSEPH
St. Joseph Economic Development Authority
Tuesday, April 16th, 2024
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.Cons ent Agenda
a.Minutes – March 19th, 2024
b.Financial Report – March
5.Fa çade Grant Request – College and Minnesota 109 Ash St W
6.Abatement Request – Hansen and Company
7.General Business updates
8.Board Member Announcements
9. Adjourn
Zoom Meeting Information
Join Zoom Meeting
https://us06web.zoom.us/j/82698897944?pwd=b1RaeE5IenZ0L0Z0ejF4UWhvWUVidz09
Meeting ID: 826 9889 7944
Passcode: 725385
Board member Larry Hosch will be
participating remotely and be located at:
4600 Victoria St N
Shoreview, MN 55126
1
Mar. 19th, 2024
Page 1 of 2
Pursuant to due call and notice thereof, the St. Joseph Economic Development Authority met on
Tuesday, Mar. 19th, 2024 at 12:00 PM.
Members Present: Board Members Rick Schultz, Joe Bye, Larry Hosch, Kevin Kluesner, Dale Wick
Members Absent: None
City Representatives Present: Nate Keller, Community Development Director
Others present: Ann Hudson, Shannon Wiger, Joe Walz, Cory Ehlert, Mary Bruno, Ann Riesner
Schultz called the St. Joseph Economic Development Authority meeting to order at 12:00 PM
Public Comments None
Agenda Approval: Keller Asked the Board to add “Joetown Blocks as agenda item after item #7. Schultz
made a motion to approve the agenda as amended; seconded by Bye and passed unanimously by
those present.
Consent Agenda: Wick made a motion to approve the consent agenda as follows; seconded by
Kluesner and passed unanimously by those present.
a. Minutes – Feb. 20th
b. Financial Report – As of February
Business Façade Grant Hudson Properties 13 MN St W
Ann Hudson recently purchased the old St. Joseph Mutual Insurance building. She has plans to offer a
new gift boutique store by mid-April. Keller presented the Façade grant which will go towards awnings,
lighting, signage, painting, and new doors.
Kluesner made a motion to approve the Façade grant up to a maximum of $2000; seconded by
Bye and passed unanimously by those present.
Business Façade Grant College and Minnesota 33 1st Ave NW
33 1st Ave NW is undergoing some improvements tied to expansion plans by WR Home Company.
Shannon Wiger who owns the property is proposing to add a ramp/deck, new siding, exterior windows
and trim, entry doors, and front step entrance.
Kluesner made a motion to approve the Façade grant up to a maximum of $2000; seconded by
Bye and passed unanimously by those present.
Business Façade Grant College and Minnesota 106 2nd Ave NW
The building at 106 2nd Ave NW is undergoing some significant repair and upgrades. Proposed are
improvements to exterior items like: windows, paint, entry doors, roof, and landscaping.
Kluesner made a motion to approve the Façade grant up to a maximum of $2000; seconded by
Wick and passed unanimously by those present.
Ms.Wiger asked about a potential grant for property at 109 Ash ST W. Improvements would be made to
the area that abuts the alleyway. Discussion was had on the definition and intent of “improvements as
seen from the public view” and whether or not it was meant to imply from roads or if alleys should be
included. Consensus from group was to allow submission of grant for Wigers project at 109 Ash St W.
Joetown Blocks
Bruno and Riesner provided updates to the Joetown Blocks event planned for June 9th from 12-5.
Request is to increase the financial support for the event from $5,000 to $9,000. Keller explained the
funds would come from the EDA programs budget (used for Façade improvements, demolition grants,
etc.).
Schultz made a motion to support an increase of $9,000 from the EDA programs fund budget to
support the Joetown Blocks event; seconded by Kluesner and passed unanimously by those
present.
General Business/Development update
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Mar. 19th, 2024
Page 2 of 2
Keller provided updates on the Synergy Site, Planning/Land Use legislation, Consumer Directions
Retention Visit, Boutique hotel, Goodin Company, Schneider property.
Adjourn: Wick made a motion to adjourn the meeting at 12:50 PM, seconded by Kluesner and
passed unanimously by those present.
Minutes by:
Nate Keller
Community Development Director
3
EDA Agenda Item
________________________
MEETING DATE: April 16, 2024
AGENDA ITEM: March Finance Report s
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: N/A
PREVIOUS EDA ACTION: EDA approved four façade grants; waiting to be reimbursed.
BACKGROUND INFORMATION:
Enclosed you will find the reconciled financial reports through March 31, 2024. The 2023 audit reversing
entries have been recorded. The audit is still on-going until the council accepts the financial statements
(anticipated for May 20th). Audit entries are still possible until completion.
The cash position on March 31, 2024 is $28,624.60. Of this amount, $69,447 is set aside for EDA
program expenditures. This leaves an undesignated cash deficit of $40,822. The EDA is mainly funded
with property taxes. The first half property taxes will be received the end of June and beginning of July.
Council will consider the EDA recommendation to fund $9,000 of the EDA program revenue for Joe
Town Blocks. If approved, staff with transfer the $9,000 into fund 220 CVB in April.
The other funds reported include the TIF funds , Lodging Tax, DEED CDAP Housing 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.
BUDGET/FISCAL IMPACT: For Information Only
ATTACHMENTS: Financial Summaries – EDA Funds
REQUESTED BOARD ACTION: Consider acceptance of the March 2024 financial reports.
4
2024 Capital Expenditures
General Fund Capital Improvement Plan ‐ EDA
Final adopted December 4, 2023
12/31/2023
Available through 3/31 through 3/31
Project Project Reserve Budget Grants/Aids Spent 2024
Department Account Code Number Equipment Balance 2024 2024 2024 Balance
EDA 250-46500-582 EDA-1401 Computer Software 4,306.74 ‐ 4,306.74
EDA 250-46500-588 EDA-1402 Business Development 40,140.22 25,000.00 65,140.22
RLF 251-46500-588 EDA-1402 Business Development 427,053.91 ‐ 427,053.91
467,194.13 25,000.00 ‐ ‐ 492,194.13
TOTAL EDA CIP 471,500.87 25,000.00 ‐ ‐ 496,500.87
BFA Grants Awarded in 2023, not paid as of 12/31/2023:Grant Match $
Kyle Schneider, Sal's Bar 109 Minnesota St W front façade $2,000
College & Minnesota, Quonset Building 106 2nd Ave NW front façade $2,000
Hudson Properties, new Gift Shop 13 Minnesota St W front façade $2,000
College & Minnesota, WR Home Company 33 1st Ave NW front façade upgrades $2,000
$9,000 requested for Joe Town Blocks
Project
5
St. Joseph Economic Development Authority
Summary Treasurer's Report - Fund 250
March 31, 2024
Fund 250, EDA Balance as of December 31, 2023 (unaudited)41,024.43
Year to Date Revenue:Budget YTD Actual
Interest Earnings 500 616.32
TIF/MIF Deposit - -
State of Minnesota Grant - -
Abatement Reimbursement (School District)9,385 -
Ad Valorem Taxes 120,800 -
Total Revenue 130,685 616.32
Year to Date Expenditures by Object:
Board Stipends 1,050 (360)
Staff Salaries/Training 57,745 (11,052)
Software Support/Office Supplies/Postage 1,610 (1,271)
Professional Services 1,000 -
Telephone 1,435 (333.15)
Greater St. Cloud Development Investment 5,000 -
Dues and Memberships (Other) 295 -
Advertising 150 -
Abatement Payments (Country Manor) 36,400 -
Marketing 500 -
Computers 500 -
EDA Programs 30,000 -
Transfer to Other Funds - -
Total Expenses 135,685 (13,016.15)
Fund Summaries as of March 31, 2024:
EDA Net Position - Fund 250 - (unaudited), cash balance 28,624.60
Designated for Capital Programs 69,446.96
Undesignated (40,822.36)
TIF 4-1 Fortitude Senior Apts Balance - Fund 253 29,855.59
TIF 2-1 Millstream Shops and Lofts Balance - Fund 257 43,496.75
TIF 2-3 Bayou Blues & Alley Flats Balance - Fund 259 143.26
Lodging Tax Balance - Fund 220 17,994.18
DEED CDAP Housing Grant Balance - Fund 225 56,448.21
Revolving Loan Balance - Fund 251 535,148.34
Designated for Revolving Loan Program 68,094.43
Designated for Economic Development 467,053.91
6
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 220 - CVB
ASSETS
220-10199CASH17,994.18
TOTAL ASSETS17,994.18
LIABILITIES AND EQUITY
FUND EQUITY
220-25310UNASSIGNED FUND BALANCE20,691.69
REVENUE OVER EXPENDITURES - YTD( 2,697.51)
TOTAL FUND EQUITY17,994.18
TOTAL LIABILITIES AND EQUITY17,994.18
7
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 225 - DEED CDAP HOUSING GRANTS
ASSETS
225-10199CASH56,448.21
TOTAL ASSETS56,448.21
LIABILITIES AND EQUITY
FUND EQUITY
225-25310UNASSIGNED FUND BALANCE56,440.07
REVENUE OVER EXPENDITURES - YTD8.14
TOTAL FUND EQUITY56,448.21
TOTAL LIABILITIES AND EQUITY56,448.21
8
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 250 - EDA
ASSETS
250-10199CASH28,624.60
250-15500DUE FROM OTHER FUND3,800.00
TOTAL ASSETS32,424.60
LIABILITIES AND EQUITY
FUND EQUITY
250-25310UNASSIGNED FUND BALANCE44,824.43
REVENUE OVER EXPENDITURES - YTD( 12,399.83)
TOTAL FUND EQUITY32,424.60
TOTAL LIABILITIES AND EQUITY32,424.60
9
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 251 - REVOLVING LOAN FUND
ASSETS
251-10199CASH535,148.34
TOTAL ASSETS535,148.34
LIABILITIES AND EQUITY
FUND EQUITY
251-24415DESIGN. FD BAL - OPERATIONS467,053.91
251-25310UNASSIGNED FUND BALANCE65,125.25
REVENUE OVER EXPENDITURES - YTD2,969.18
TOTAL FUND EQUITY535,148.34
TOTAL LIABILITIES AND EQUITY535,148.34
10
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 253 - TIF 4-1FORTITUDE SENIOR APTS
ASSETS
253-10199CASH29,855.59
TOTAL ASSETS29,855.59
LIABILITIES AND EQUITY
FUND EQUITY
253-25310UNASSIGNED FUND BALANCE28,903.71
REVENUE OVER EXPENDITURES - YTD951.88
TOTAL FUND EQUITY29,855.59
TOTAL LIABILITIES AND EQUITY29,855.59
11
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 257 - TIF 2-1 MILLSTREAM SHOPS LOFTS
ASSETS
257-10199CASH43,496.75
TOTAL ASSETS43,496.75
LIABILITIES AND EQUITY
FUND EQUITY
257-25310UNASSIGNED FUND BALANCE43,552.29
REVENUE OVER EXPENDITURES - YTD( 55.54)
TOTAL FUND EQUITY43,496.75
TOTAL LIABILITIES AND EQUITY43,496.75
12
CITYOFSTJOSEPH
BALANCESHEET
MARCH 31, 2024
FUND 259 - TIF 2-3BAYOU BLUES ALLEY FLAT
ASSETS
259-10199CASH143.26
TOTAL ASSETS143.26
LIABILITIES AND EQUITY
LIABILITIES
259-20500DUE TO OTHER FUND3,800.00
TOTAL LIABILITIES3,800.00
FUND EQUITY
259-25310UNASSIGNED FUND BALANCE( 3,665.93)
REVENUE OVER EXPENDITURES - YTD9.19
TOTAL FUND EQUITY( 3,656.74)
TOTAL LIABILITIES AND EQUITY143.26
13
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
CVB
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
ECONOMIC DEVELOPMENT AUTHORI
220-46500-31600LODGING TAX695.61868.1515,700.0015,700.0014,831.855.5
220-46500-34409MARKETING18.7574.751,000.001,000.00925.257.5
220-46500-36210INTEREST EARNINGS23.4133.09150.00150.00116.9122.1
TOTAL ECONOMIC DEVELOPMENT A 737.77975.9916,850.0016,850.0015,874.015.8
TOTAL FUND REVENUE737.77975.9916,850.0016,850.0015,874.015.8
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 12
14
CITY OF ST JOSEPH
EXPENDITURES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
CVB
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
ECONOMIC DEVELOPMENT AUTHORI
220-46500-208VISITORS BUREAU PRIZES.00.00200.00200.00200.00.0
220-46500-209VISITORS BUREAU MERCHANDISE.00.001,000.001,000.001,000.00.0
220-46500-300PROFESSIONAL SERVICES2,250.002,250.009,000.009,000.006,750.0025.0
220-46500-308COMMUNITY PROGRAMS.00.001,200.001,200.001,200.00.0
220-46500-309VISITORS BUREAU PHOTOS/VIDEOS775.00.00.00.00.00.0
220-46500-310IT SERVICES.00.00740.00740.00740.00.0
220-46500-328MARKETING718.31.003,845.003,845.003,845.00.0
220-46500-340ADVERTISING.001,423.501,755.001,755.00331.5081.1
TOTAL ECONOMIC DEVELOPMENT A 3,743.313,673.5017,740.0017,740.0014,066.5020.7
TOTAL FUND EXPENDITURES3,743.313,673.5017,740.0017,740.0014,066.5020.7
NET REVENUE OVER EXPENDITURES( 3,005.54)( 2,697.51)( 890.00)( 890.00)1,807.51(303.1)
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 13
15
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
DEED CDAP HOUSING GRANTS
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
ECONOMIC DEVELOPMENT AUTHORI
225-46500-36210INTEREST EARNINGS121.458.14500.00500.00491.861.6
TOTAL ECONOMIC DEVELOPMENT A 121.458.14500.00500.00491.861.6
TOTAL FUND REVENUE121.458.14500.00500.00491.861.6
NET REVENUE OVER EXPENDITURES121.458.14500.00500.00491.861.6
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 14
16
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
EDA
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
ECONOMIC DEVELOPMENT AUTHORI
250-46500-31010CURRENT AD VALOREM TAXES289.96.00221,070.00221,070.00221,070.00.0
250-46500-33400STATE GRANTS & AIDS( 4,457.46).00.00.00.00.0
250-46500-36210INTEREST EARNINGS95.25616.32500.00500.00( 116.32)123.3
250-46500-36301TAX ABATEMENT REIMBURSEMENT4,691.00.009,385.009,385.009,385.00.0
TOTAL ECONOMIC DEVELOPMENT A 618.75616.32230,955.00230,955.00230,338.68.3
TOTAL FUND REVENUE618.75616.32230,955.00230,955.00230,338.68.3
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 15
17
CITY OF ST JOSEPH
EXPENDITURES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
EDA
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
ECONOMIC DEVELOPMENT AUTHORI
250-46500-101EDA SALARIES9,241.658,396.0440,510.0040,510.0032,113.9620.7
250-46500-103EDA LEGISLATIVE BODIES.00360.001,200.001,200.00840.0030.0
250-46500-121PERA CONTRIBUTIONS693.13637.263,040.003,040.002,402.7421.0
250-46500-122FICA CONTRIBUTIONS588.35617.102,350.002,350.001,732.9026.3
250-46500-123DEFERRED COMP-EMPLOYER61.2552.50455.00455.00402.5011.5
250-46500-125MEDICARE CONTRIBUTIONS112.35.00550.00550.00550.00.0
250-46500-130H SA- EMPLOYER CONTRIBUTION402.50411.25825.00825.00413.7549.9
250-46500-131HEALTH INSURANCE1,570.171,393.636,720.006,720.005,326.3720.7
250-46500-132DENTAL INSURANCE110.3294.56505.00505.00410.4418.7
250-46500-133LIFE INSURANCE9.326.9930.0030.0023.0123.3
250-46500-134DISABILTY INSURANCE108.5181.36405.00405.00323.6420.1
250-46500-151WORKERS COMP. INSUR. PREM..00.00225.00225.00225.00.0
250-46500-171CLOTHING ALLOWANCE.00.0020.0020.0020.00.0
250-46500-200OFFICE SUPPLIES57.80.00200.00200.00200.00.0
250-46500-300PROFESSIONAL SERVICES( 800.00).001,500.001,500.001,500.00.0
250-46500-303ENGINEERING FEE.00.001,000.001,000.001,000.00.0
250-46500-304LEGAL FEES2,558.50.00500.00500.00500.00.0
250-46500-310SOFTWARE SUPPORT1,323.03604.363,415.003,415.002,810.6417.7
250-46500-321TELEPHONE341.01333.151,325.001,325.00991.8525.1
250-46500-328MARKETING.00.00520.00520.00520.00.0
250-46500-331TRAVEL & CONFERENCE EXPENSE.0027.95650.00650.00622.054.3
250-46500-340ADVERTISING.00.00100.00100.00100.00.0
250-46500-433DUES & MEMBERSHIPS5,000.00.005,295.005,295.005,295.00.0
250-46500-582COMPUTER SOFTWARE.00.00500.00500.00500.00.0
250-46500-588EDA PROGRAMS7,491.00.0025,000.0025,000.0025,000.00.0
250-46500-622TIF/ABATEMENT PAYMENTS( 4,691.00).00134,115.00134,115.00134,115.00.0
TOTAL ECONOMIC DEVELOPMENT A 24,177.8913,016.15230,955.00230,955.00217,938.855.6
TOTAL FUND EXPENDITURES24,177.8913,016.15230,955.00230,955.00217,938.855.6
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 16
18
CITY OF ST JOSEPH
EXPENDITURES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
EDA
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
NET REVENUE OVER EXPENDITURES( 23,559.14)( 12,399.83).00.0012,399.83.0
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 17
19
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
REVOLVING LOAN FUND
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
251-46500-36210INTEREST EARNINGS385.80( 386.97)2,500.002,500.002,886.97( 15.5)
251-46500-36320LOAN PRINCIPAL( 51,593.50)3,072.3913,410.0013,410.0010,337.6122.9
251-46500-36321LOAN INTEREST374.45283.761,035.001,035.00751.2427.4
TOTAL EDA( 50,833.25)2,969.1816,945.0016,945.0013,975.8217.5
TOTAL FUND REVENUE( 50,833.25)2,969.1816,945.0016,945.0013,975.8217.5
NET REVENUE OVER EXPENDITURES( 50,833.25)2,969.1816,945.0016,945.0013,975.8217.5
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 18
20
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
TIF 4-1FORTITUDE SENIOR APTS
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
253-46500-31050TAX INCREMENT.00.0068,000.0068,000.0068,000.00.0
253-46500-36210INTEREST EARNINGS26.61951.88150.00150.00( 801.88)634.6
TOTAL EDA26.61951.8868,150.0068,150.0067,198.121.4
TOTAL FUND REVENUE26.61951.8868,150.0068,150.0067,198.121.4
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:45PM PAGE: 19
21
CITY OF ST JOSEPH
EXPENDITURES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
TIF 4-1FORTITUDE SENIOR APTS
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
253-46500-300PROFESSIONAL SERVICES.00.001,000.001,000.001,000.00.0
253-46500-306COUNTY TIF ADMIN FEE.00.00100.00100.00100.00.0
253-46500-340ADVERTISING.00.0095.0095.0095.00.0
253-46500-622TIF/ABATEMENT PAYMENTS.00.0062,000.0062,000.0062,000.00.0
TOTAL EDA.00.0063,195.0063,195.0063,195.00.0
TOTAL FUND EXPENDITURES.00.0063,195.0063,195.0063,195.00.0
NET REVENUE OVER EXPENDITURES26.61951.884,955.004,955.004,003.1219.2
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:46PM PAGE: 20
22
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
TIF 2-1 MILLSTREAM SHOPS LOFTS
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
257-46500-31050TAX INCREMENT.00.0051,000.0051,000.0051,000.00.0
257-46500-36210INTEREST EARNINGS35.09( 55.54)350.00350.00405.54( 15.9)
TOTAL EDA35.09( 55.54)51,350.0051,350.0051,405.54( .1)
TOTAL FUND REVENUE35.09( 55.54)51,350.0051,350.0051,405.54( .1)
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:46PM PAGE: 21
23
CITY OF ST JOSEPH
EXPENDITURES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
TIF 2-1 MILLSTREAM SHOPS LOFTS
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
257-46500-300PROFESSIONAL SERVICES.00.001,000.001,000.001,000.00.0
257-46500-306COUNTY TIF ADMIN FEE.00.0050.0050.0050.00.0
257-46500-340ADVERTISING.00.0095.0095.0095.00.0
257-46500-622TIF/ABATEMENT PAYMENTS.00.0045,900.0045,900.0045,900.00.0
TOTAL EDA.00.0047,045.0047,045.0047,045.00.0
TOTAL FUND EXPENDITURES.00.0047,045.0047,045.0047,045.00.0
NET REVENUE OVER EXPENDITURES35.09( 55.54)4,305.004,305.004,360.54( 1.3)
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:46PM PAGE: 22
24
CITY OF ST JOSEPH
REVENUES WITH COMPARISON TO BUDGET
FOR THE 3 MONTHS ENDING MARCH 31, 2024
TIF 2-3 BAYOU BLUES ALLEY FLAT
PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT
EDA
259-46500-31050TAX INCREMENT.00.0040,000.0040,000.0040,000.00.0
259-46500-36210INTEREST EARNINGS( 5.79)9.1925.0025.0015.8136.8
TOTAL EDA( 5.79)9.1940,025.0040,025.0040,015.81.0
TOTAL FUND REVENUE( 5.79)9.1940,025.0040,025.0040,015.81.0
FOR ADMINISTRATION USE ONLY25 % OF THE FISCAL YEAR HAS ELAPSED04/04/2024 02:46PM PAGE: 23
25
CVB 2024 Financial Summary
As of March 31, 2024
Beginning Fund Balance 1‐1‐24 (Unaudited)20,498.09$
Budget YTD Rev
Customer 2024 2024
Interest Earnings 150.00$ 165.99$
T‐shirt/Hats/Merchandise Sales 1,000.00 243.75
Grants ‐ ‐
Rodeway Inn Lodging Tax 10,500.00 447.29
CSB Lodging Tax 4,100.00 ‐
Estates B&B Lodging Tax 1,100.00 312.56
16,850.00$ 1,169.59$
Budget YTD Exp
Vendor 2024 2024
Professional Services ‐ Manage Social Media (Bruno Press)9,000.00$ 2,250.00$
Travel & Conference Expenses ‐$ ‐
IT Services ‐ Website/Social Media/QR Code Reader 740.00 ‐
Visitor's Bureau ‐ Rubinski Works ‐ Videos ‐ ‐
Visitor's Bureau ‐ Photos ‐ ‐
Community Programs ‐ Shop Small/Winterwalk/Feb/June 1,200.00 ‐
Visitors Bureau Prizes ‐ Swag Give‐Aways/Prizes 200.00 ‐
Marketing ‐ SHRPA 2,845.00 ‐
Marketing ‐ Campaigns 1,000.00 ‐
Visitor's Bureau ‐ Merchandise (Krillan/Rambow)1,000.00 ‐
Advertise ‐ Think Tourism USA 775.00 825.00
Advertise ‐ MN Trails Magazine 780.00 598.50
Advertise ‐ Newcomer Service Magazine 200.00 ‐
17,740.00$ 3,673.50
Ending Cash Balance 3‐31‐24 (Unaudited)17,994.18$
26
EDA Agenda Items 5-7
MEETING DATE: April 16th, 2024
AGENDA ITEMS: 5-7
PREVIOUS BOARD ACTION:
5 – Board provided direction at the March meeting to allow applicant to submit application
6 – none
7 – updates pr ovided every month
BACKGROUND INFORMATION:
5 – Façade Grant Request – College and Minnesota 109 Ash St W
Per direction from t he March meeting Shannon W iger ha s submitted a gr ant application to do some
improvements to 109 Ash St W. Proposed improvements include a steel and wood fence, sidewalk on the
Western side. Improvements will be seen from alleyway and portions of the street on Ash. Request is for
the maximum $2,000.
6 – Abatement Request – Hansen and Company
Adam Hansen who owns Hansen and Company Woodworks is planning to construct a new 82,500 S.F.
building in the Industrial Park off County Road 133. Staff have been working with him over the past
several months and have explored many potential avenues to ensure the project can proceed forward.
Hansen has a gap in the project of at least $284,816 and are therefore requesting assistance through Tax
Abatement. TIF was also looked at but Abatement was the better fit for the project for numerous
reasons. Intention is for a pay-as-you-go Abatement agreement. Hansen and Company would pay their
taxes and then the city would reimburse. Reimbursement would occur once or twice a year.
This pr oject scored very high within our Subsidy policy specifically in terms of retention of jobs. Any
retention or creation of over 26 jobs is considered a 5 out of 5. 61 jobs will be retained with
approximately a dozen or so created in the next five years. Abatement being sought is a 9-year term with a
not to exceed amount of $396,438. The estimated gap in the project is at least $284,816.
An abatement agreement a nd subsidy agreement is be ing dr afted by t he city’s c onsultants with intentions
to be presented at the May 6th Council. The Council will act on the “not-to-exceed” figure and agreements.
The not-t o-exceed figure is the city's portion of the taxes which would be abated and the max that could be
provided for assistance. It is an estimated amount based on estimated taxable market value of the project
(total building value and assessors estimate). The figure may be reduced pending the actual assessment value
at time of property tax certification. The final taxable market value and taxes will not be known until the
County Assessor certifies and determines the final value.
The request for the EDA is to make a recommendation on the Abatement application (approval or denial).
This recommendation will be forwarded to the City Council. City staff is supportive of the request and
worked with our consultants to get to this stage of being comfortable moving this forward for consideration.
27
7 – General Business updates
Updates will be provided for the Synergy Site, business retention/recruitment, intentions to update the
City’s Subsidy Policy and TIF/Abatement Policy, Boutique hotel. Spreadsheet has not been provided
this month.
BUDGET/FISCAL IMPACT: $2,000 if the Façade grant is approved.
Abatement request is to not exceed: $396,438
ATTACHMENTS: Façade Grant application for 109 Ash St W
Abatement application and supplemental materials
REQUESTED BOARD ACTION:
5 – motion on matching grant request of $2,000
6 – motion to recommend the Hansen Abatement Request
7 - none
28
ST. JOSEPH BUSINESS DISTRICT
FAÇADE ARCHITECTURAL DESIGN GRANT PROGRAM
(As Amended January 1st, 2022)
PURPOSE
The St. Joseph Business District Façade Architectural Design Grant Program provides incentives to
stimulate visible investment in St. Joseph businesses. Property owners are encouraged to consider
improvements that incorporate the surrounding community including but not limited to aesthetics,
environment, cultural and historic elements, and architecture. These improvements should create a
cohesive, inviting environment. The program provides a matching grant for actual design and construction
costs, up to $2,000 per property address, per calendar year. Qualifying projects must be of an approved
design, be applied for by commercial property owners and/or merchants, and be applicable to exterior
building, landscape improvements, and other similar improvements visible from a public right-of-way.
Approved projects will be funded on a first-come/first-served basis until all funds are expended. In
addition, the opportunity exists that the St. Joseph Economic Development Authority’s revolving loan
program could be available to assist with construction costs associated with the implementation of façade
designs.
ELIGIBILITY
1.All work must be done on the exterior of the building/property and/or result in a publicly visible
improvement.
2.All work done must be in accordance with the City of St. Joseph Code of Ordinances, the Downtown
Revitalization Plan and subsequent design guidelines, and the building code. All required permits
must be obtained. Work shall include the correction of any known exterior building code violations.
3.Work in progress or performed prior to project approval will typically not be eligible for funding unless
the EDA finds significant underlying purposes for work beginning prior to project approval.
4.Funds may be used for the design of exterior building improvements, awnings, windows, doors and/or
site landscaping, other than sod or seed, resulting in a publicly visible improvement and for actual
construction costs related to an approved improvement. Other uses may also be eligible if prior
approval is granted by the St. Joseph Economic Development Authority.
5.Signs are eligible for this program but must be in connection with a façade improvement project. Sign
are not eligible as a “stand-alone” project.
6.The following types of property are not eligible:
•Tax delinquent
•Special Assessment delinquent
•Property in litigation
•Property in condemnation or receivership
•Tax exempt properties
•Exclusively residential buildings
•Properties zoned industrial
•New construction projects on lots previously undeveloped (redevelopment and/or rehabilitation
projects remain eligible) unless it results in a project beyond typical construction and is consistent
29
with Design Standards and is found to have a significant impact on the character of the
downtown.
•Property considered non-conforming to the City’s Code of Ordinances, unless the proposed
improvements are intended to correct all the non-conforming issues.
PROJECT APPROVAL GUIDELINES
Program oversight and authority for grant approval is delegated to the City of St. Joseph Economic
Development Authority. The Economic Development Authority will review and approve all grants based
on the following guidelines:
1.A project for which an application has been received will only be reviewed if it is filled out completely.
Photographs illustrating subject building(s) and property and proposed site changes/improvements
may be required by the EDA.
2.Multiple property owners must submit separate applications for each property/project.
3.Any business owner under a lease who submits and application must obtain and provide written
consent of the property owner.
4.Preference will be given to projects which:
•Will positively contribute to the City revitalization/renewal efforts
•Will eliminate a blighting influence
•Will result in a visible improvement that would not be made otherwise
•Demonstrate a ratio of private investment to public investment greater than 2:1
5. Project is consistent with the Comprehensive Plan, transportation plans, and other applicable plans.
6.Projects must be completed within a timely manner from date of official project approval (i.e. one year
with a maximum extension of an additional six months). As indicated, dollars are limited and
reimbursement will be made after project improvements are completed, and reimbursement
requested.
7.Grant Disbursement
Awarded loan funds will be dispersed to the applicant upon submittal of receipts or invoices for
supplies purchased and inspection which certifies the work completed is in accordance with the EDA
approval and other city ordinances.
PROPERTY OWNER REQUIREMENTS
Upon the application submittal for a project, the Applicant will play an important role in a partnership that
includes the City of St. Joseph and the Economic Development Authority. The following may be required
to review plans depending on the scope of the project: City staff, the Planning Commission, the EDA and
the City Council. Those required to review the plans and/or grant application will review design drawings,
proposed work specifications, and the architectural materials. Below are items that will be required of as
part of completing your project.
1.Attendance at an informational meeting which will outline the entire project procedure.
2.Property owners’ attendance at various meetings, reviews etc. with representatives of either the City
or EDA to expedite various stages of the project.
3.All work to be done on the project shall be the sole responsibility of the property owner. The City of
St. Joseph/EDA administers the grant program herein and the City/EDA is not responsible for any
work undertaken as a result of the grant. The owner hereby holds the City and EDA harmless for any
and all liability commencing out of any work constructed and paid for the design grant herein.
30
APPLICATION FOR
ST. JOSEPH BUSINESS DISTRICT
FAÇADE ARCHITECTURAL DESIGN GRANT PROGRAM
** Please remember to include photos of your building(s) and/or property as they relate
to the types of improvements indicated on this application. **
APPLICANT AND PROPERTY OWNER INFORMATION:
Applicant
Phone: Email:
Mailing Address:
Property Owner:
Phone: Email:
Mailing Address:
PROJECT INFORMATION:
Business Name:
Business Address:
1.On the attached page, please identify the specific improvements you are proposing for the building(s)
and/or property.
2. Based on the proposed improvements identified, please provide your best estimate of the entire
project cost: $
3.If the project cost comes in at, or exceeds your estimate, do you have private funds readily available
to complete the proposed the project? Yes No
If No, by what means will you secure funding and still complete the project within a timely manner
4. If your project is approved, does completing the project timely pose any concerns for you?
31
Yes No
If yes, Please list those concerns:
PROJECT DESCRIPTION
Please provide an accurate and thorough summary of your project. The photographs taken of your
building(s) and property will assist in a visual manner to further support your written project
description.
Based on the description of your project and your motivation for wanting to make these improvements,
please place a check mark next to those project preference item you feel your project meets.
Will positively contribute to the City’s revitalization/renewal efforts.
Will eliminate a blighting influence.
Will result in a visible improvement that would not be made otherwise.
Result in a ratio of private investment to public investment greater than 2:1.
Building Permits & Inspections
Applicant is responsible for obtaining appropriate building permits, per the Building Code and/or City of
St. Joseph Zoning Ordinance. In the case of improvements that do not require a city-issued building
permit, the applicant must submit the name and state license number of the contractor completing the
work and agree to an inspection of the work by a city building official.
32
Grant Disbursement
/\warded loan funds will be dispersed to the applicant upon submittal of receipts or invoices for supplies
purchased and inspection which certifies the work completed is in accordance with the EDA approval and
other city ordinances.
Certification
City staff or an authorized representative shall have the right to inspect the property to be improved at any
time from the date of application upon giving due notice to the owner and to occupants.
I/We understand that any intentional misstatements will be grounds for disqualification.
I/We authorize program representatives the right to access the property to be improved for the purpose of
the grant program and to take photographs of the structure before and after rehabilitation.
I/We further understand that I/we will make the final selection of the improvements to be made wi th the
loan funds and that the contract for improvements will be solely between myself and the contractor(s).
The administering agency will not be liable for the inadequate performance of the contractor(s).
The information 01 this application is accurate. I have read, understand, and agree to comply with the P~~tin ~:itrna for the St. Joseph Business Fa,ade Architectural Design Grant Program.
(~~JiAf k------V---~- _ _ _ _ __ _ ~/ri l z~~--
Si nature of Applicant Date
Signature of Owner(s) (if different than Applicant) Date
Contact:
Nate Keller, Community Development Director
(320) 557-3524
nkeller@cityofstjoseph.com
Submit completed application by email to nkeller@cityofstjoseph.com or to:
St. Joseph Government Center
75 Callaway St. I
St. Joseph, MN 56374
33
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39
St. Joseph TIF/Abatement Application Page | 1
City of St. Joseph
TIF/Tax Abatement Application
APPLICANT INFORMATION:
Business Name: Hansen & Company Woodworks Inc. Date:
Business Address: 30701 Pearl Drive, Suite 3, St. Joseph, MN 56374
Business Type: Corporation Sole Proprietorship Partnership
Please Select: X New Business Existing Business # of Years of Business 20
C ontact Person/Authorized Representative Adam Hansen Title:
Daytime Phone: 320 260-4148 Alternate Phone: Fax:
Email: adamh@hcowoodworks.com
Business Legal Counsel: Rinke Noonan Phone: 320 251-6700
Legal Counsel Address: 1015 West St. Germain St., Suite 300 St. Cloud, MN 56301
INFORMATION ON PROPERTY OWNER (if different from Applicant):
Legal Name of Property Owner: CLC Partners
Address: PO Box 99, St. Joseph, MN
Telephone: Email:
PROJECT INFORMATION:
Project Description: See attached
Project Address: Not assigned at this time
Parcel Identification Number(s): 84.53735.0205; 84.53735.0206; 84.53735.0207
Legal Description (may be attached instead of listed):
C urrent Market Value of Site: Present Zoning of Site: I-1 light industrial
Proposed Zoning of Site: Same
40
St. Joseph TIF/Abatement Application Page | 2
Is the Applicant the Fee Owner of the Site: (yes/no) No If No, has a Purchase Agreement been
executed for the subject property? Please Explain: Purchase agreement has been signed
Dollar Amount of TIF/ Abatement Requested: $284,816 - SEE ATTACHED.
Explain Why TIF/Abatement is needed for the Project: See attached
Describe the number of permanent full -time equivalent jobs to be created and/or retained:
61 jobs to be retained, 9 additional jobs by 2026 along with expanding wages 20%
Describe any other public benefits resulting from the Project:
Jobs, property tax base expansion, stimulation of future development along with 70% increase in
energy efficiency over current production.
Project Architect Name: G r aeme Mahler
Architect Address: 5150 Marson Drive, Sauk Rapids, MN 56379
Architect Phone: 320 257-2724 Architect Email: gmahler@mahlerarchitcture.com
Project Engineer Name:
Engineer Address:
Engineer Phone: Engineer Email:
Anticipated Project Start Date: Summer 2024 Anticipated Completion Date: Summer 2025
FINANCIAL INFORMATION
Estimated Project Costs: Please complete Appendix A – Financial Information (attached)
Has the business, owners or parent company ever declared bankruptcy? No X Yes
If Yes, please explain:
Has the business, owners, or parent company ever defaulted on any loan commitment? No X Y es
If Yes, please explain:
41
St. Joseph TIF/Abatement Application Page | 3
Has the business, owners, or parent company every used tax increment financing or abatement for a
project in the past? No X Yes If Yes, please include details as to where and when.
Please indicate whether or not we may contact the conventional financer:
INFORMATION CHECKLIST
The following information must be presented to the St. Joseph Community Development Director as soon as
possible. The information will be evaluated to determine if the proposed project conforms to the City’s goals
and objectives.
1.Attach a map illustrating the exact boundaries of the proposed development.
2.Attach a general written description and drawings of the project illustrating:
→Size and location of existing and proposed buildings
→Building concept plans including a site plan, building elevations, building openings,
plumbing and HVAC systems, number of stories, square footage per use, construction type,
building materials, and cost estimate.
→Proposed use of property and type of development, estimated traffic to be generated by the
project per day.
→Off-street parking
→Project Schedule
→Estimated market value of the project when complete (City will work with the Stearns
County Assessor’s Office to obtain this).
3.Project financing information including:
→Proposed project funding sources and uses statement, including a demonstrated gap in
financing.
→Project financial performa analysis/cash flow analysis demonstrating a gap in financing
→A statement illustrating why the project doesn’t cash flow without TIF/Abatement
4.A statement identifying the public benefit of the proposed project in terms of number of jobs
created, number of jobs retained, increase in property value, redevelopment impact, economic
development impact, etc…
5.A written perspective of the Developer and/or Development Company including background and
experience of the business entity, company leaders, company history, past development
achievements, etc.
42
St. Joseph TIF/Abatement Application Page | 4
SIGNATURES
I certify the statements contained in the Application and supplemental materials are true, complete, and correct
to the best of my knowledge, and are made by me in good faith. I understand that any falsifications,
misrepresentations, or omission of facts in this Application shall be sufficient cause for disqualification and/or
ineligibility for tax increment financing and/or abatement approval, regardles s of the time that elapses before
such false information is discovered.
Applicant Signature: D a te:
Co-Applicant Signature: D ate:
City Administrator: David Murphy
(320) 229-9424
dmurphy@cityofstjoseph.com
C ommunity Development Director : Nate Keller
(320) 557-3524
nkeller@cityofstjoseph.com
Address: St. Joseph Government Center
75 Callaway St. E
St. Joseph MN 56374
43
St. Joseph TIF/Abatement Application Page | 5
Appendi x A – Financial Information
Estimated Project Related Costs
1.Land Acquisition $602,000
2.Site Development $653,000 includes excavation, ponding, curbing/guttering
3.Building cost $ 7,040,000
4.Equipment $ 12,066,500
5.Architectural/Engineering Fees $
6.Legal Fees $
7.Off-Site Development Costs $
8.Other (please explain)$
9.TOTAL PROJECT COST $ 20,361,500 +
Sources of Financing
1.Private Financing Institution $
2.Tax Abatement Funds (Total Request) $
Number of Years:
City Portion: $County Portion: $
Annual Amount: $Annual Amount: $
3.Other Public Funds $
4.Developer Equity $
5.TOTAL SOURCES $
(Note: Please list all sources separately, use additional sheets if necessary)
SEE ATTACHED
44
Building Leases should come in at Gross Rents cost of maximum $7.50/sqft
•Lease Rate: $6.00/sqft, this covers Debt service and a 7% return on the Equity.
•Insurance: $0.30/sqft
•Maintenance: $0.07/sqft
•Taxes: $1.20/sqft ($99k annually)
•Total Gross Rent: $7.57/sqft
Rents cannot exceed 2.4% of Revenues, expectation is to stabilize at 2% of Revenues within 4
years.
4-12-2024 Update: See the 4-12-24 Proforma for adding the office space, this allows an additional
0.2-0.4% to the capacity of rent $$. Office Rents we have calculated at $4500/month NNN
We have other available options that would allow us to reduce our building and or rent costs.
•Existing Building in City of St Cloud (long term lease)
o Rent Rates $3.50 sqft
o CAM Costs $0.86/sqft
•Land in City of St Cloud (bare land, would build on)
o Land Costs $1.75/sqft for BUILDABLE lant only
o To help with land costs and improvements this option would have TIFF or Abatement
•Land In City of Sauk Rapids (bare land, would build on)
o Land Costs $0.50/sqft
o To help with land costs and improvements and leveling lot the city would have TIFF
or Abatement
Total Request
1.Concessions on Fees and Permits of the following but not limited to the following for a total
Permit and Fees cost to be $50,000.
a.Building Permit
b.SAK & WAK Fees
c.Plan Review Fees
d.MEP Permit Fees
e.Variance Fees
f.Trunk Fees
g.Meter Fees
2.Abatement value
a.Land Costs
i.Lots 4,5,6, & 7 are in consideration, and they equal 328,801sqft
ii.Land Cost are currently at $1.93/sqft the seller had conceded to $1.85 /sqf t.
this is for Gross Sqft not Buildable Sqft
iii.We are asking for $1.75/sqft. Buildable Sqft
iv.There is an estimated 10% of the lots that are required for ponding, this
equals 32,880 sqft
v.Land Credit Requesting $90,420.00
b.Ponding Cost
i.There is an estimated 32880 sqft of ponding
ii.We have been given estimates that this will cost $1.50/sqft to build the
ponds
iii.Pond Credit Requesting $49,320.00
c.There is a Gap from Rents that are required to make the deal cash flow in the 1st few
years to what HCo would need to keep rents in the range of 2.0-2.6% of Revenues.
i.The Gap is $157,420.00
3.Total Value $270,014.00 is being requested in Abatement + Assistance on the City Fees and
Permits to be capped at $100k
4-12-2024 Update to Request
Added Office shell with main floor buildout to phase 1 of construction, this will increase the
construction costs and tax capacity. (the cost to build the offices is coming in equal to continuing to
rent office space, thus the reason to put it in phase 1 )
Abatement period extended to 9 years
The city is considering addressing the permits and fees through an extension of the Abatement
period which would have us paying all fees as typical to building construction.
I would propose moving up the Cap on Permits and Fees to $100k. This would still consider a
concession would be needed from the City.
CITY COMMENT - TOTAL BUILDING PERMIT FEES ARE ABOUT $114,702. THEREFORE
ABATEMENT REQUEST IS CLOSE TO $284,816.
Sources & Uses Worksheet - Real Estate - City of St Joseph MN
Use Type Party Max Amount
Real Estate SBA 504 MBFC via Bremer $2,652,682.00
Real Estate Conventional Debt Bremer $3,979,024.00
Real Estate - Equity Equity Adam Hansen $850,000.00
Real Estate - Assistance Abatement City of St Joseph $218,294.00
47
City Comment - some of the numbers above have been updated
Term Rate
25 Year Am 6.28%
25 Year Am 7.62%
9 year Term Up Front $4.4M property value 0.00%
48
Real Estate SOV Summary
Scope Sum of Cost Sum of Sqft Cost
Building Costs $5,267,395 $64.24
Design $95,325 $1.16
Land $602,281 $7.34
Misc Material $46,500 $0.57
Sitework $641,700 $7.83
Sitework Final $133,920 $1.63
Contingencies $344,100 $4.20
Construction Fees & Permits $572,880 $6.99
Grand Total $7,704,101 $93.95
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Shareholders/Owners
·Adam Hansen
o 92.5% Shareholder
o 320-260-4148
o 9356 Co Rd 4 St Joseph MN 56374
·Joseph Gieske
o 7.5% Shareholder
o 320-980-3590
o 109 27th St N Sartell MN 55377
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55
Hansen & Company Proforma - 9 year Updated
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Line 2026 2027 2028 2029 2030 2031 2032 2033 2034
1 Rent Capacity from HCo (3.5% YoY Increases)$679,053.58 $702,820.45 $727,419.17 $752,878.84 $779,229.60 $806,502.63 $834,730.23 $863,945.78 $894,183.89
2 Rent Capacity from HCo (% of Rev)2.61%2.51%2.28%2.13%2.09%2.06%2.03%2.00%1.97%
3 Real Rent Required (Est 3.5% YoY Increases)Line 15 $723,945.00 $749,283.08 $760,522.32 $771,930.16 $783,509.11 $795,261.74 $807,190.67 $819,298.53 $831,588.01
4 Expected Income Gap -$44,891.42 -$46,462.62 -$33,103.15 -$19,051.32 -$4,279.51 $11,240.89 $27,539.55 $44,647.25 $62,595.88
5 Estimated Property Valuation $3,510,000.00 $5,850,000.00 $5,908,500.00 $5,967,585.00 $6,027,260.85 $6,087,533.46 $6,148,408.79 $6,209,892.88 $6,271,991.81
6 Est Property Tax (2.75% of Value)2.38%Line 5 x Line 6 $83,362.50 $138,937.50 $140,326.88 $141,730.14 $143,147.45 $144,578.92 $146,024.71 $147,484.96 $148,959.81
7 Expected Property Taxes (Initial Budget)$106,200.00 $109,386.00 $112,667.58 $116,047.61 $119,529.04 $123,114.91 $126,808.35 $130,612.60 $134,530.98
8 Expected Tax Gap Line 8 - Line 6 $22,837.50 -$29,551.50 -$27,659.30 -$25,682.54 -$23,618.41 -$21,464.01 -$19,216.35 -$16,872.35 -$14,428.82
9 Expected Income Gap - Expected Tax Gap Line 8 + Line 4 -$22,053.92 -$76,014.12 -$60,762.45 -$44,733.85 -$27,897.92 -$10,223.12 $8,323.20 $27,774.90 $48,167.05
Sqft Annually Monthly
10 Lease Rates Per Sqft - Production Space 82500sqft $6.00 $531,000.00 $44,250.00
11 Lease Rates Per Sqft - Office Space 6000sqft $9.00 $54,000.00 $4,500.00
12 Expected Property Taxes (Initial Budget)$1.20 $106,200.00 $8,850.00
13 Insurance $0.30 $26,550.00 $2,212.50
14 Maintenance $0.07 $6,195.00 $516.25
15 Totals $723,945.00 $60,328.75
Aggregated Net sqft Cost $6.61
Aggregated Gross sqft Cost $8.18
1 2026 3,564,356 44,554 0 44,554 59.53% 26,522 24,228 77,479
2 2027 6,000,000 75,000 0 75,000 59.53% 44,645 63,047 130,873
3 2028 6,060,000 75,750 0 75,750 59.53% 45,092 100,364 132,188
4 2029 6,120,600 76,508 0 76,508 59.53% 45,543 136,239 133,516
5 2030 6,181,806 77,273 0 77,273 59.53% 45,998 170,726 134,858
6 2031 6,243,624 78,045 0 78,045 59.53% 46,458 203,880 136,213
7 2032 6,306,060 78,826 0 78,826 59.53% 46,923 235,752 137,582
8 2033 6,369,121 79,614 0 79,614 59.53% 47,392 266,391 138,964
9 2034 6,432,812 80,410 0 80,410 59.53% 47,866 295,846 140,361
396,438 295,846 1,162,034
Key Assumptions:
1 Taxable market value (TMV) annual growth assumption = 1.0%
2
3
4
5 City tax abatement is calculated on total estimated tax capacity of the property within the Tax Abatement.
6
City of St. Joseph
Cabinet Mfg Project
Projected Cash Flow from Tax Abatement
City Net Tax
Capacity Rate
TIF
District
Year
Taxes
Payable
Year
Tax
Capacity
Original Base
Tax Capacity
Taxable Market
Value (TMV)
Full value in taxes payable year 2027, includes 80,000 facility plus additional office space. The TMV is estimated to achieve capacity for this potential
higher value. Actual annual City tax abatement will be based on the actual city property taxes paid by the property, subject to a $396,438 not to
exceed amount for the maximum 9 year term of the tax abatement.
Present Value
City Tax
Abatement
(5% Rate)
Assumes project construction commences in 2024 for taxes first payable in 2026. Partial completion in year 2024.
Tax rates used to calculate City tax abatement and property tax is certified Pay 2024 tax rates.
Captured Tax
Capacity for Tax
Abatement
Election for captured tax capacity is assumed at 100.00%.
City Tax
Abatement
Estimated Property
Tax Payable (All
Jurisdictions)
CITY ONLY TAX ABATEMENT 4/12/2024, PRELIMINARY FOR PLANNING PURPOSES ONLY56
St. Joseph TIF Policy 1
City of St. Joseph
Policy and Procedures
Tax Increment Financing and Tax Abatement
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. Tax increment financing and tax abatement are generally interchangeable with respect to
policy application.
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 or tax abatement 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 or abatement assistance. The fundamental purpose of
tax increment financing or tax abatement in St. Joseph is to encourage desirable development and/or
redevelopment that would not otherwise occur “but for “the assistance provided through TIF or tax
abatement.
The City of St. Joseph and EDA shall consider tax increment financing or tax abatement for projects that
serve to accomplish the City’s goals for housing and economic development as they may change ov er
time. The goals include facilitating projects that would result in the creation of quality jobs (i.e. stable
em ployment and/or attractive wages and benefits) and the attraction, retention, and expansion of
business and housing options in the City.
II. CIT Y/EDA OBJECTIVES FOR THE USE OF TIF or TAX ABATEMENT
As a matter of adopted policy, the City of St. Joseph and EDA will consider using tax increment financing
(TIF) or tax abatement to assist private development projects to achieve one or more of the followi ng
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 (i.e. stable
em ployment and/or 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 (i.e. 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.
57
St. Joseph TIF Policy 2
•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.
III.COSTS WHICH QUALIFY FOR TIF OR ABATEMENT 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 OR ABATEMENT ASSISTANCE
All new TIF or tax abatement 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.
A.MINIMUM QUALFICIATIONS
1.The project should meet one or more of the tax increment or tax abatement Objectives outlined in
Section II 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 TIF
or abatement assistance.
3.The project must be consistent with the City’s Comprehensive Plan, zoning ordinance, and
building code or require changes to the plan and ordinances must be under active consideration
by the City at the time of final TIF or abatement application submittal.
58
St. Joseph TIF Policy 3
4.Prior to approval of a TIF or abatement financing plan, the developer shall provide any requested
market and financial feasibility studies, appraisals, soil borings, private lender commitment,
and/or 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 or tax abatement 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 or abatement 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 or
abatement assistance.
B.DESIRED QUALIFICATIONS
1.TIF and abatement 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 and abatement 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 and abatement will normally not be used in a project that involves an excessive land and/or
property price. This will 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 and abatement 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 or abatement
subsidies. Developers should provide information to support that the TIF or abatement
assistance will not create such a competitive advantage. Priority consideration will be given to
projects that fill an unmet market need.
5.TIF and abatement 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 or abatement will not be
considered.
59
St. Joseph TIF Policy 4
7.TIF or tax abatement 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
giv en 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.
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 criteria established by the EDA, and
•Projects that provide the highest and best desired use for the property.
V.TAX INCREMENT OR ABATEMENT 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 qualifications.
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 determining
the level of TIF assistance.
VI.APPLICATIONS
The City’s tax increment financing or tax abatement program will be administered by the St. Joseph Economic
Development Authority (EDA). The St. Joseph EDA will require a non-refundable application fee for its processing
of the application. The application fee shall be paid to the EDA at the time a final application is submitted.
At the time a final application is submitted, the applicant shall also deposit a review escrow as required in the fee
schedule. If additional costs are incurred beyond required review escrow the Applicant shall be notified of such
additional costs in writing. Said additional costs shall be paid 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.
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St. Joseph TIF Policy 5
VII. APPLICATION PROCESS
The application process is a two-step process and must be completed in accordance with the TIF and abatement
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.
VIII. OTHER POLICY ISSUES
FISCAL DISPARITIES
Does not impact the City of St. Joseph according to State Statute.
Loss of Government Aid
At any time, if the formation of a new TIF district or the use of an existing district to finance a project will subject
the City to an LGA/HACA penalty or local contribution to a project, the transaction shall be structured so as to
have the ultimate cost the City minimized to the greatest extent permitted by law, so as to have the project bear
the cost of the penalty or contribution.
Public Use of Tax Increment or Abatement
The City and EDA shall follow applicable state laws in terms of potential public improvement financing with TIF or
abatement. It shall be the general policy of the City and EDA to identify public improvements at the time of
adoption or amendment of the TIF Plan or abatement agreement.
Attachment A “But For” Worksheet
Attachment B In-house Grading and Report Card
Attachment C Application Procedures
61
Please contact a Northland Public Finance
professional with any questions about how
Northland can serve your community.
Troy Bernberg (CO)
303-801-3386
tbernberg@northlandsecurities.com
George Eilertson (MN)
612-851-5906
geilertson@northlandsecurities.com
Jessica Green (MN)
612-851-5930
jgreen@northlandsecurities.com
Jeff Heil (IA)
641-750-5720
jheil@northlandsecurities.com
Heidi Kuhl (IA)
515-657-4684
hkuhl@northlandsecurities.com
Peter Meidal (MN)
612-851-4978
pmeidal@northlandsecurities.com
Tammy Omdal (MN)
612-851-4964
tomdal@northlandsecurities.com
Chip Schultz (IA)
515-657-4688
cschultz@northlandsecurities.com
The Public Finance Group
of Northland Securities, Inc.
150 S. Fifth Street, Suite 3300
Minneapolis, MN 55402
Phone: 612-851-5900 / Fax: 612-851-5918
www.northlandsecurities.com/public-finance
Member FINRA & SIPC/Registered with SEC & MSRB
RC 23-213 Muni 23-157 0623
Tax Abatement
Tax abatement is a useful and flexible economic development tool. The term “tax abatement”, however, can be
misleading. The enabling statute (Minnesota Statutes, Sections 469.1812 to 469.1815) does not authorize the actual
abatement of taxes. Instead, local governments have the ability to levy a property tax (an abatement levy) that is
equivalent to taxes that could be abated. The revenue derived from an abatement levy can be used for a variety
of economic development, redevelopment, housing, and infrastructure purposes. Planning for specific projects
should refer to the complete statute and utilize the guidance of a qualified financial advisor.
Calculating the Abatement
A tax abatement is based on the property value of the parcel(s) subject to
the abatement. The unit of government granting the abatement decides
how much of the parcel value to use in the abatement calculation. The
abatement may function like tax increment financing and be based on
the value created by new development. Tax abatement may also use the
entire value of the parcel or any portion of the parcel(s) value deemed ap-
propriate by the governing body of the subdivision.
The statute does not control how political subdivisions determine the
parcels that will be subject to tax abatement. Users have the flexibility
to target individual parcels, parcels grouped into a common project, or a
broader area of improvements.
The tax abatement is calculated by multiplying the tax capacity value sub-
ject to abatement by the abating jurisdiction’s tax rate. It is important to
incorporate the tax abatement into the annual levy calculations. An abate-
ment levy must be included in the preliminary levy for Truth in Taxation.
This timing means that the actual property value will be known (value as
of January 1 of the current year for taxes payable in the following year),
but the tax rate will be an estimate.
The methodology for calculating the abatement should be clearly de-
scribed in the resolution authorizing the abatement.
Uses
The enabling statute contains relatively few limitations on the use of tax
abatement. The revenues from the abatement levy can be retained by the
political subdivision or conveyed to the property owner. When paid to
the property owner the abatement acts like a tax rebate.
The only other specific use limitations in the statute relates to bond-fund-
ed activities. The proceeds of Tax Abatement Bonds can only be used
to (1) pay for public improvements that benefit the property, (2) acquire
and convey land or other property, as provided under this section, (3)
reimburse the property owner for the cost of improvements made to the
property, or (4) pay the costs of issuance of the bonds.
Minnesota local governments have made broad use of tax abatement. The
following examples illustrate potential applications:
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2
Commercial, office, and other forms of develop-
ment that do not fit the criteria for an economic
development TIF district
Redevelopment projects where the setting is eco-
nomically obsolete, but not physically blighted.
Public improvements that are difficult to finance
with special assessments (i.e. - highway inter-
changes)
Improvements, such as fiber optic systems, that
cannot be financed with special assessments
Recreational facilities and community centers
Financial assistance to private parties made us-
ing tax abatement may create a business subsidy
under State Law
Key Limitations
Several important limitations apply to the use of tax
abatement.
Political Subdivisions. The ability to use tax abatement
is given to cities (statutory or home rule charter),
towns, school districts, and counties. Each of these
political subdivisions has independent authority over
the use of tax abatement.
Maximum Amount. The total amount of tax abate-
ments for each political subdivision is capped. The
total abated taxes in any year cannot exceed the
greater of (1) ten percent (10%) of the net tax capacity
of the political subdivision for the taxes payable year
to which the abatement applies, or (2) $200,000.
Duration. The general rule is that a political subdivi-
sion may grant an abatement for 15 years or less.
The maximum duration is 8 years if the authorizing
resolution does not specify a duration. The maximum
abatement period may increase to 20 years if one of the
other political subdivisions is requested to participate
and declines (pursuant to procedures in M.S. 469.1813,
Subd. 6b).
Relationship to TIF. Parcels in a tax increment financ-
ing district may not be used for tax abatement. TIF
parcels can be used for abatement after the district is
decertified. Tax abatement provides a means to extend
the term of financial assistance beyond the life of a TIF
district.
Bonds
Bonds can be issued to provide funding for certain ac-
tivities (see “Uses”). The total principal of abatement
bonds cannot exceed the sum of estimated abatements
for the years granted. If the abatement is not adequate
to pay principal and interest, then the political sub-
division may use other legally available revenues,
including property taxes, to pay interest on the bonds.
The general obligation of the political subdivision may
be pledged to the bonds. The bonds are not subject to
the debt limit and do not require an election.
Process
Compared to tax increment financing, the process for
the use of tax abatement is simple. The governing
body of the political subdivision must adopt a resolu-
tion that defines the parameters for the tax abatement.
A public hearing is required before approving the
resolution. Notice of the hearing must be published
in a newspaper of general circulation in the political
subdivision at least once more than ten days but less
than 30 days before the hearing. The statute does not
require any other documents or notifications.
The statute requires a finding that the use of tax abate-
ment is in the public interest for one of the following
reasons:
Increase or preserve tax base
Provide employment opportunities
Provide or help with the acquisition or construc-
tion of public facilities
Help redevelop or renew blighted areas
Help provide access to services for residents of the
political subdivision
Finance or provide public infrastructure
Phase in a property tax increase on the parcel
The findings are stated in the abatement resolution.
The abatement resolution also includes the parcels
subject to the abatement, property values of the par-
cels used in the abatement calculation, duration of the
abatement, and any other terms needed to define use
of the abatement.
An abatement levy is not currently subject to levy
limits. An abatement levy must follow the procedures
applicable to all other property tax levies.
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