EDA MEETING MINUTES MAY 26, 2016

Date: 
May 26, 2016

 

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – May 26, 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 President Bob Southworth.  EDA members Southworth, James Dunn, Jerry Pfeifer, John Kvamme and Cory Abels were in attendance.  Members Marilyn Rundell and Jay Hansen were absent. Community Development Director Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitor present was John Mayer, Chief Manager of Chabeans, LLC and the owner of Patrick’s on Third.

Agenda:

Wille made an addition to New Business - Mayer-Chabean’s Accessibliity Enhancement Revolving Loan Request and moved it to the first item of the agenda. Motion by Pfeifer, second by Abels to approve the agenda as amended.  All voted in favor of the motion, the motion carried.

Minutes:

A motion was made by Dunn, seconded by Pfeifer to approve the April 28, 2016 minutes as presented.  All members voting aye, the minutes were approved.

John Mayer – Chabean’s Accessibility Enhancement Revolving Loan Request

John Mayer, on behalf of Chabean’s, LLC, has submitted an Accessibility Enhancement Revolving Loan Request in the amount of $25,000 in order to expand the restroom facilities at 125 South Third Street (Patrick’s On Third). 

Wille stated that the restroom facilities at Patrick’s are undersized and do not comply with standards and regulations contained in the Americans with Disabilities Act of 1990.  The remodeling and expansion of the restrooms will enhance compliance with the federal legislation.

Wille stated that a subcommittee reviewed John and Tamara mayer’s personal  financials and they found nothing that would prohibit them from obtaining the loan. He said if approved, the $25,000 would represent 61% of the total project costs.

Wille recommended that the proposed note be secured by a subordinate mortgage recorded against the Chabeans, LLC real estate at 125 South Third Street and also a personal guarantee from the Mayer’s.

Pfeifer objected to the loan.  He did not feel that the City should subsidize the bank financing as this is tax payer’s money.  He did feel that the Revolving Loans were a great way to use EDA funds.

Dunn felt that the guidelines should include Heritage Preservation Commissions (HPC) approval.  Wille indicated that interior remodel does not require HPC review.

A motion was made by Abels, seconded by Dunn to introduce Resolution No. 2016-06 entitled, “Resolution Recommending Approval Of A $25,000.00 Accessibility Enhancement Revolving Loan To Chabeans, LLC (d.b.a.Patrick’s On 3rd) To Partially Finance The Remodeling And Expansion Of Restroom Facilities At 125 South Third Street”.  Members Preifer, Kvamme, Abels and Dunn voting aye, Member Southworth abstaining, the Resolution was passed and adopted.

Traverse Green  Subdivision (Marketing Timeline)

Wille updated the EDA on progress of Traverse Green Subdivision.  He stated that marketing materials had been distributed to several industries, both in and out of town, has been placed on the City’s website and Public Access Channel 8.  In addition, a facebook page has been developed to market the availability of lots and spec homes.

An open house has been scheduled for Wednesday, June 29, at 5:30 p.m. at the Community Center.  Potential home buyers will be able to view home plans and a map of the building sites.  They will also have an opportunity to speak with mortgage and financing professionals.

On Wednesday, July 13, from 8:00 a.m. to 10:00 a.m. a “Land Rush Reservation” will take place.  Lots will be reserved on a first-come, first served basis.  After this event, lot reservations can be secured at the Saint Peter Municipal building.

The City Council has authorized the construction of spec homes.  Three properties will be developed at a time.  Southwest Minnesota Housing Partnership (SWMHP) also plans to construct spec homes at the same time.

Wille said he hopes construction can begin by September 1, 2016.  The goal is to get the house enclosed so the contractor can work inside the home when inclement, winter weather develops.

Wille added that there are a number of financing products available as well as TIF for those that qualify. 

Historic Preservation /Accessibility Enhancement RLF

Historic Preservation/Accessibility Enhancement Loan Program Guidelines were reviewed.  Several changes were suggested and agreed upon.  Wille was asked to make the changes and present them to the City Council for approval.

A motion was made by Abels, seconded by Dunn to approve the changes as discussed and present the guidelines to the City Council.  All member voting aye, the motion carried.

Reports:

Autotronics – Scheduled to make their balloon payment on June 1, 2016.

Broadway Avenue – The streetscape project will likely be undertaken in 2017 when the Hwy 99 Bridge is repaired.  MNDOT is finalizing the plans pending the City Council review.  MDOT will make the final decision.

Texaco – The property is in tax forfeiture.  There are two interested parties in developing the property.

O’Reilly – The demolition is done.  Construction will start in the near future.

Adjournment

With no further business before the EDA, a motion was made by Pfeifer, seconded by Abels to adjourn.  The meeting adjourned at 12:46 pm