EDA MEETING MINUTES APRIL 28, 2016

Date: 
April 28, 2016

 

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – April 28, 2016
Saint Peter Community Center – Saint Peter Room

Call to Order:
The regular meeting of the Saint Peter Economic Development Authority (EDA) was called to order at 12:00 pm by Vice President Marilyn Rundell.  EDA members Rundell, James Dunn, Jay Hansen, Jerry Pfeifer and Cory Abels were in attendance.  Members John Kvamme and Bob Southworth were absent. Community Development Director Wille, City Administrator Todd Prafke and Administrative Secretary Cindy Moulton were also in attendance. Visitor present was Mary Cammack, owner of Playing Possum.

Agenda:
Motion by Hansen, second by Abels to approve the minutes as presented.  All voted in favor of the motion, the motion carried.

Minutes:
Mary Cammack has submitted a revolving loan fund application in the amount of $2,452 to partially finance the installation of a replacement awning at 218 South Minnesota.  The total project cost is $2,800 and Cammack has applied for 90% of the project.

Cammack plans to utilize the existing awning frame to maintain the current scale of the awning.  She also plans to use the original purple color canvas and lettering font.

A motion was made by Hansen, seconded by Abels to introduce Resolution No. 2016-04 entitled, “A Resolution Recommending Approval Of A $2,452 Façade Renovation Revolving Loan To Mary Cammack (d.b.a. Playing Possum Antiques) To Partially Finance The Replacement Of An Awning At 218 South Minnesota Avenue”  Members  Pfeifer, Hansen, Rundell, Abels and Dunn approved the resolution.  The Resolution was passed and adopted.

Speculative Home Construction Fund
 Wille stated that the City of Saint Peter successfully developed both the Nicollet Meadows and Washington Terrace Subdivisions.  He said that the developments were constructed under the Building Better Neighborhoods program as authored by the Greater Minnesota Housing Fund (GMFA). 

The City and Southwest Minnesota Housing Partnership constructed 84 single-family speculative homes within the two subdivisions with the help of funding from GMHF.  Once completed these homes were sold, at cost, to households with qualifying incomes. 

Wille informed the EDA that the funding used to construct spec homes has been discontinued from GMHF.  As a result of the lack of funding, the City is unable to access funds for the new subdivision. 

Under the direction of the City Council, Wille requested that the EDA provide $500,000 to establish a fund to provide spec home construction financing.  If approved, Wille said the transfer of funds would be from the interest revenue generated by the local portion of the revolving loans.

Wille proposed the funds be available for a four year period beginning in August, 2016, when Traverse Green Subdivision should be sufficiently developed to allow for construction of individual homes.

Each spec home would be subject to competitive sealed bids from qualified contractors based on construction specifications developed by SWMHP.  The intent of the City is to bid two or three spec homes at a time.  SWMHP would oversee the construction contacts and monitor the projects for processing of payment requests.  The City building official would provide for code inspections and enforcement.

Wille said construction is projected to begin in late summer or early fall.

Abels asked what the average cost of the spec home is.  Prafke stated they would run between $195,000 - $200,000.  Wille said there are mortgage products available to buyers.  He did add that a person does not have to be income eligible to purchase a spec home.

Hansen asked if any of the City fees will be waived and if there was a written policy for the EDA borrowing money to the City Council.  Wille said that there is no specific written policy regarding the matter.  However, such a transfer is authorized by Statute.

Hansen asked why the EDA’s money and not the City’s if there is not a policy.  Prafke said it was the most logical because the EDA promotes economic development. Hansen felt there should be a policy created.

Hansen expressed his concern regarding competition with contractors.  Prafke didn’t feel there was houses at this price point.  Prafke added that 15 aces has been set aside for upper end homes which would be privately developed. 

Dunn was concerned with the amount of homes on the market in Saint Peter.  He felt it will be harder for home owners to sell existing homes.  He was leary of the impact on established neighborhoods in town.

Abels felt the EDA would be losing out if the loan was made at 0% interest.

A motion was made by Pfeifer, seconded by Abels to introduce Resolution No. 2016-05 entitled, “Resolution Providing For The Transfer of $500,000 From The Interest Income Of The Local Revolving Loan Fund To Establish A Speculative Home Construction Fund To Finance The Construction Of Speculative Homes In Traverse Green Subdivision”.  Members Rundell, Abels, and Pfeifer voting aye, Members Hansen and Dunn voting nay, the Resolution was passed and adopted.

Reports:

MS & GS Enterprises - Paid off their revolving loan in full and the mortgage has been released.

Exceed Packaging – The revolving loan balance has been paid in full.

Hey Diddle Diddle  - Closing has been completed on the loan.

Community Core Partners – Closing has been completed on the loan.

Revolving Loan Documents –The City Council plans to consider the alterations at the workshop on May 2, 2016.

River Valley Birth Center - The 50th baby has been delivered at RVBC. They are considering hiring additional staff.  30 additional babies were delivered by RVBC during the year.

Project Pine RFP – The City could not respond because there is not a 200 acre parcel available.

Shell Station – There are parties interested in the property and they are encouraged to contact the County Auditor’s Office.  The County has indicated the property is coming up for tax forfeiture.  MPCA is confident there is no contamination from the gas tanks.

O’Reilly Auto Parts  - They are getting ready to proceed with the project.

Boat & Small Engine Shop – The new owner needs to establish setbacks.  Wille is working with him.  Wille stated that the use of the building has not changed so the gateway requirements do not apply.

Adjourn:
With no further business before the EDA, a motion was made by Abels, seconded by Dunn to adjourn.  The meeting adjourned at 12:45 pm