EDA Minutes 2013

Date: 
December 11, 2013

 

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – December 11, 2013

Saint Peter Community Center – Governors Room

 

The meetings of the Economic Development Authority was called to order at 12:05 p.m. by President Mike Favre.

 Roll call was taken with EDA members Favre, John Kvamme , James Dunn, Ken Eichmann, and Jay Hansen (12:06) in attendance.  Members Bob Southworth and Marilyn Rundell were unable to attend the meeting as scheduled.  Community Development Director Russ Wille,  Administrative Secretary Cindy Moulton and St. Peter Herald reporter Jessica Bies were also present.  Visitors present were Erika and Joseph Urban and Wendy Anderson of the Small Business Development Center

 Agenda

Motion by Dunn, seconded by Kvamme to approve the agenda as presented.  With no further discussion, all voted in favor, motion carried.

 Minutes

A motion was made by Favre, seconded by Dunn to approve the minutes of the October 24, 2013  meeting of the EDA.  With no noted corrections, all voted in favor, motion carried.

 Birth Center – RLF Application

 Erika Urban and her husband Joe are proposing the establishment of a birthing center at 526 West Park Row.  The home is currently being used as a licensed residential rental unit.  Wille stated the City Council amended the zoning ordinance to create the opportunity to establish a birth center within the residential neighborhood as a Conditional Use Permit (CUP).    Wille said that the Board of Zoning Appeals & Adjustments has scheduled a public hearing.  He indicated unless there is compelling public testimony opposed to the birth center, it is likely that the CUP will be granted. 

 Wille said in addition to municipal consent, the proposed birth center must achieve accreditation from the Commission for the Accreditation of Birth Center (CABC) as a condition of obtaining a license from the Minnesota Department of Health.  The CABC standards address the organization, administration, facility, staffing, record keeping and procedures that must be followed to achieve and maintain accreditation.

 At the present time, Erika maintains an office in Mankato.  Her service territory extends approximately 1 hour from Mankato in each direction.  Because her practice is restricted to attending to births in the residence of the expectant mother, her practice has significantly stalled the growth of her business.  Wille explained that if a birthing center were available to support Erika’s practice, Erika could attend two mothers in labor simultaneously.

 Wille stated that the business plan included for EDA review was prepared with the assistance of the Small Business Development Center in Mankato.  The start up costs of the Birth Center has been calculated to be $240,821.  Erika is seeking a $65,008 loan from the EDA to partially finance the start-up of the business.  She has received a loan commitment from Pioneer Bank (Mankato) in the amount of $150,000 and will be contributing $25,813 of her own cash into the project. 

 Wille stated that an agreement to purchase the 526 West Park Row property has been executed establishing a sales price of $159,500.  The evaluated value of the home on October 13, 2013 was $184,551 and the taxable market value of $179,100 was established by Nicollet County for taxation purposes.  Wille noted that in the absence of an appraisal, the lending limit would be 125% of the estimated market value for taxation purposes or $223,875.

 The financial projections for the business have been prepared with the assistance of Wendy Anderson a Small Business Development Center consultant.  Anderson suggested the projections were conservative. 

 The projections suggest first year revenues of $222,083.  This number would be based on attending to 53 births in the Birthing Center.  EDA members questioned how revenues could be substantially increased over the 2012 revenues or the 2013 projection of $61,232.  Anderson suggested that she had the same questions when first reviewing the financials.  She explained that births conducted in the Birthing Center would pay a higher reimbursement than those who have been going through home births.  There is a $3,000 facility fee paid when a child is born at the Birthing Center.  These fees are reimbursed by nearly all insurance companies.  Medical assistance will pay a facility fee of $1,200 while those without insurance will pay a facility fee of $2,000.

 Anderson noted that Erika is to deliver 22 babies in 2013 and has 17 scheduled for the first half of 2014.  Kvamme noted that based upon the established reimbursement rates, the Birthing Center would need to deliver 18 babies in the first year to cash flow.

 Wille noted that the Urbans have created two corporations.  The River Valley Birth Center, LLC will be the operating entity of the birth center.  JAEL Properties, LLC will be the owner of the 526 West Park Row real estate and will lease the property to the River Valley Birth Center.

 A motion was made by Eichmann, seconded by Kvamme to introduce Resolution No. 2013-06 entitled, “A Resolution Recommending Approval Of A $65,008 Revolving Loan To JAEL Properties, LLC To Partially Finance The Acquisition, Remodeling And Reconstruction Of The 526 West Park Row Property”.  Members Eichmann, Favre, Dunn and Kvamme voting aye, Member Hansen abstaining, the Resolution was passed and adopted.

 Reports

 Don’s Appliance -   Bruce Orth, owner of Don’s Appliance, has purchased the former Volk Electric building.  They plan to pave the driveway and parking area and may seek partial financing for the remodel of the building.

 430 Ritt Street – LeaseWille stated that the City is negotiating a lease with an alternate tenant.  Kvamme indicated that he would like to see the City sell the building.  Hansen questioned why Wille was in consultation with City Administration rather than the EDA membership as to possible terms and conditions of a lease since the EDA owns the building.  Wille noted that he is a direct report to the City Administrator and that the two consult regularly to ensure that the terms and conditions would be acceptable to the Administration and ultimately the City Council.

 A motion was made by Eichmann, seconded by Dunn to adjourn.  All members voting aye, the meeting adjourned at 12:46 pm.

CITY OF SAINT PETER, MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
REGULAR MEETING MINUTES – October 24, 2013
Saint Peter Community Center – Governors Room

 

The meetings of the Economic Development Authority was called to order at 12:05 p.m. by President Mike Favre.

Roll call was taken with EDA members Favre, Marilyn Rundell, John Kvamme and James Dunn in attendance.  Members Bob Southworth, Jay Hansen and Ken Eichmann were unable to attend the meeting as scheduled.  Community Development Director Russ Wille and St. Peter Herald reporter Jessica Bies were also present.

Motion by Kvamme, seconded by Dunn to approve the agenda as presented.  With no further discussion, all voted in favor, motion carried.

Motion by Rundell to approve the minutes of the July 25, 2013 meeting of the EDA as prepared and presented by the Community Development Director.  The motion was seconded by Kvamme.  With no noted corrections, all voted in favor, motion carried.

Wille noted that Jari, USA has not provided the notice necessary to exercise the three year extension of their lease with the EDA.  Jari, USA will vacate the premises no later than March 31, 2014.  Wille presented the EDA with a proposed real estate listing agreement from Coldwell Banker Fisher Group.  A one year listing is proposed. 

Wille noted that he is currently negotiating an alternative lease with a business in the food industry.  It appears that they may be willing to make substantial leasehold improvements which would bring the building into compliance with the more recent food safety standards.  In exchange for the leasehold improvements, the potential tenant would seek up to a four year lease.  If the new lease is successfully negotiated, the building will not be marketed for sale.

Wille asked that the EDA recommend that the City Council enter into the real estate listing agreement with Coldwell Banker.  If the lease is negotiated, the agreement will not be executed.  Motion by Dunn to adopt Resolution No. 2013 -05 entitled, RESOLUTION RECOMMENDING THAT THE CITY COUNCIL ENTER INTO A REAL ESTTE LISTING AGREEMENT WITH COLDWELL BANKER COMMERCIAL – FISHER GROUP FOR THE SALE OF THE 430 RITT STREET PROPERTY OWNED BY THE SAINT PETER ECONOMIC DEVELOPMENT AUTHORITY.  The motion was seconded by Favre.  With not further discuss, the Resolution was passed and adopted.

Wille reported that Chamber of Commerce President Ed Lee and Intern Ian Floyd are visiting with downtown business and building owner to encourage modest handicapped accessibility improvements.  Periodic updates will be provided as the program advances.

Wille noted that North Mankato is seeking membership in the Regional Economic Development Alliance.  Given that their offer to join REDA was conditional, Greater Mankato Growth has withdrawn the offer to add North Mankato to REDA.  Wille will keep the EDA informed as to the North Mankato membership.

Wille noted that a midwife is seeking to establish a Birthing Center in Saint Peter.  There are a number of planning and zoning issues to be addressed before the center can be sited.  If the City Council is receptive to amending the zoning ordinance to allow for consideration of a Birthing Center as a Conditional Use, the midwife will likely apply to access the revolving loan funds to partially finance her business enterprise.

With no further business to conduct, Favre moved to adjourn.  The motion was seconded by Dunn and all voted to adjourn.

CITY

OF SAINT PETER, MINNESOTA, ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – July 31, 2013

Saint Peter Community Center – Governors Room

 

Call to Order

 The meeting was called to order by President Mike Favre at approximately 12:00 p.m.

 Attendance

 Economic Development Authority members Mike Favre, Bob Southworth, John Kvamme, Marilyn Rundell, and Jay Hansen were in attendance.  Members James Dunn, and Ken Eichmann were absent.  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were present.  Visitors present were Chuck Zieman and Jessica Bies of the St. Peter Herald. 

 Approval of Agenda

 A motion was made by Hansen, seconded by Rundell to approve the agenda.  All voting in favor, the agenda was approved as presented.

 Approval of Minutes

 A motion was made by Kvamme, seconded by Hansen to approve the minutes of June 27, 2013 EDA meeting with the addition of, “Guest present Chuck Zieman, and correction, “The policy change was an attempt, if possible, move the loans into the private sector”.  With all members voting aye, the Minutes were approved as amended. 

 Hunter Hardwood – Proposed Repayment – Wille stated that the latest offer made to Greg & Neysa Schettler dba Hunter Hardwood included the consolidation of their two notes with a zero percent rate of interest and payments of $50 per month beginning September 1, 2013 – August 1, 2015 at which time the EDA would review.  Also included in the letter was that the Schettler’s shall agree to extend the time for filing of the Summons and Complaint to October 1, 2015.  Wille indicated that in correspondence dated June 27, 2013, the Schettler’s agreed to the repayment plan. 

 Wille reported that he spoke to Greg Schettler today and Shettler offered 20 cents on the dollar to settle the note.

 A motion was made by Hansen, seconded by Southworth to introduce Resolution No. 2013-04 entitled, “Resolution Altering The Terms And Conditions Of The Revolving Loans Previously Made To Greg & Neysa Schettler And Establishing Terms Of Repayment”.  Members Southworth, Hansen, Kvamme and Rundell voting aye, Member Favre abstaining, the Resolution was passed and adopted.   

 Balloon Extension – Criteria – At a previous meeting the EDA reviewed the revolving loan guidelines as they apply to balloon payments and extensions.  Wille provided a resolution recommending the changes that were suggested .  A motion was made by Hansen, seconded by Favre, to introduce Resolution No. 2013-05  entitled, “Resolution Recommending That The City Council Amend The Revolving Loan Guidelines”.  All members voting aye, the Resolution was passed and adopted.   

 Cinema 5 – Inventory/Auction  - Wille indicated that the stereo components and speakers were the only items left to be placed on the auction site.  He stated they would be placed on separate lots.

 Micro-Loan – Handicap – A number of downtown businesses do not have handicap accessibility.  Wille developed a Handicapped Accessibility Micro-Loan Program that he shared with the EDA.  Wille stated that an intern may work with Ed Lee at the Chamber to offer and encourage downtown businesses to take advantage of the loan program.

 Members recommended that if the program is taken advantage of, that the landlord sign for the loan.

 A motion was made by Hansen, seconded by Kvamme to recommend the program as prepared.  All members voting aye, the motion carried.

 Brian Grey – Discharge of Debtor(s) – Wille stated the City has received the final bankruptcy notice discharging the final debt to the City.

 430 Ritt Street Financial Report – Wille reviewed the financial performance for 430 Ritt Street.  He stated that Jones may decide to purchase the building.

 Shopko – The developer will have possession by September.  They could be opening by November.

 Adjourn

A motion was made by Southworth, seconded by Favre to adjourn.  The meeting was adjourned at 12:31. 

CITY OF SAINT PETER, MINNESOTA

 

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – July 25, 2013

Saint Peter Community Center – Governors Room

 

 Call to Order

 The meeting was called to order by President Mike Favre at approximately 12:00 p.m.

 Attendance

 Economic Development Authority members Mike Favre, Bob Southworth, John Kvamme, Marilyn Rundell, and Jay Hansen were in attendance.  Members James Dunn, and Ken Eichmann were absent.  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were present.  Visitors present were Chuck Zieman and Jessica Bies of the St. Peter Herald. 

 Approval of Agenda

 A motion was made by Hansen, seconded by Rundell to approve the agenda.  All voting in favor, the agenda was approved as presented.

 Approval of Minutes

 A motion was made by Kvamme, seconded by Hansen to approve the minutes of June 27, 2013 EDA meeting with the addition of, “Guest present Chuck Zieman, and correction, “The policy change was an attempt, if possible, move the loans into the private sector”.  With all members voting aye, the Minutes were approved as amended. 

 Hunter Hardwood – Proposed Repayment – Wille stated that the latest offer made to Greg & Neysa Schettler dba Hunter Hardwood included the consolidation of their two notes with a zero percent rate of interest and payments of $50 per month beginning September 1, 2013 – August 1, 2015 at which time the EDA would review.  Also included in the letter was that the Schettler’s shall agree to extend the time for filing of the Summons and Complaint to October 1, 2015.  Wille indicated that in correspondence dated June 27, 2013, the Schettler’s agreed to the repayment plan. 

 Wille reported that he spoke to Greg Schettler today and Shettler offered 20 cents on the dollar to settle the note.

 A motion was made by Hansen, seconded by Southworth to introduce Resolution No. 2013-04 entitled, “Resolution Altering The Terms And Conditions Of The Revolving Loans Previously Made To Greg & Neysa Schettler And Establishing Terms Of Repayment”.  Members Southworth, Hansen, Kvamme and Rundell voting aye, Member Favre abstaining, the Resolution was passed and adopted.   

 Balloon Extension – Criteria – At a previous meeting the EDA reviewed the revolving loan guidelines as they apply to balloon payments and extensions.  Wille provided a resolution recommending the changes that were suggested .  A motion was made by Hansen, seconded by Favre, to introduce Resolution No. 2013-05  entitled, “Resolution Recommending That The City Council Amend The Revolving Loan Guidelines”.  All members voting aye, the Resolution was passed and adopted.   

 Cinema 5 – Inventory/Auction  - Wille indicated that the stereo components and speakers were the only items left to be placed on the auction site.  He stated they would be placed on separate lots.

 Micro-Loan – Handicap – A number of downtown businesses do not have handicap accessibility.  Wille developed a Handicapped Accessibility Micro-Loan Program that he shared with the EDA.  Wille stated that an intern may work with Ed Lee at the Chamber to offer and encourage downtown businesses to take advantage of the loan program.

 Members recommended that if the program is taken advantage of, that the landlord sign for the loan.

 A motion was made by Hansen, seconded by Kvamme to recommend the program as prepared.  All members voting aye, the motion carried.

 Brian Grey – Discharge of Debtor(s) – Wille stated the City has received the final bankruptcy notice discharging the final debt to the City.

 430 Ritt Street Financial Report – Wille reviewed the financial performance for 430 Ritt Street.  He stated that Jones may decide to purchase the building.

 Shopko – The developer will have possession by September.  They could be opening by November.

 Adjourn

A motion was made by Southworth, seconded by Favre to adjourn.  The meeting was adjourned at 12:31.

CITY OF SAINT PETER,  MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

 REGULAR MEETING MINUTES - June 27, 2013

Call to Order

 The meeting was called to order by Vice President Bob Southworth at approximately 12:00 p.m.

Attendance

Economic Development Authority members Bob Southworth, John Kvamme, Marilyn Rundell, and Jay Hansen were in attendance.  Members Mike Favre, James Dunn, and Ken Eichmann were absent.  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were present.  Visitors present was Paul Tanis of the Development Corporation and Chuck Zieman. 

Approval of Agenda

Motion by Hansen, seconded by Kvamme to approve the agenda of the meeting with the addition of D. Shot Guns Plus under New Business and C. Business Advocate under Reports.  All voting in favor of the agenda as amended, motion carried.

Approval of Minutes

A motion was made by Hansen, seconded by Kvamme to approve the minutes of the May 23, 2013 EDA meeting as prepared and presented.  With no noted corrections, all voted in favor, motion carried.

Hunter Hardwood – Delinquency/Settlement -  Wille reported that he hasn’t received any correspondence since Brandt’s letter was sent to Schettler’s extending them a new offer on their loan repayment.  Wille stated he contacted Greg Schettler at which time Schettler thought the minimum payments were being submitted.  Schettler said he would call Wille and update him on the status of their payment plan.

Southworth recommended Wille obtain confirmation in writing and report back to the EDA at their next meeting.  

Chippewa Packaging – Delinquency – The City received revolving loan payments for Chippewa Packaging on June 25, 2013.  The payment was $80 short. Wille suggested that payment issues be brought to the City Council’s attention if there continues to be delinquencies.

Cinema 5 – Inventory/Disposition – Wille said that the Saint Peter Development Corporation and EDA jointly contributed to the theater project (SPDC 7/8th) and the (EDA 1/8th).   Wille reported that the theater will cease operations today (June 27,  2013). 

Paul Tanis stated that the Development Corporation agreed to be involved in the theater project because they felt it was a good asset for the community but also knew of the risk.  Tanis said that some St. Peter residence feel that the closing of the theater will be a loss to the community.

Wille said that he contacted a few equipment brokers and every broker indicated the market is flooded with theater equipment and furnishings because several theaters are closing because of new technology.

Wille stated that the City will be auctioning off the fixtures, furnishing and equipment on the State auction site with the help of Community Service Office Malinda Meyer.  Wille has contacted Nicollet County Sentence-to-Serve crews to begin the removal of the SPDC/EDA property. 

Wille said that once the sale of the fixtures, furnishing and equipment is completed, the funds will be divided accordingly between the Development Corp and EDA.

Balloon Extension Criteria – Wille stated that prior to 2005, the EDA revolving loans were typically established on a straight amortization schedule.  The loans were regularly provided with terms of up to 10 – 15 years.

Wille said that in 2005 the EDA and City Council adopted alternative loan guidelines which established balloon payments for nearly every loan.  The policy change was an attempt to move the loans into the private sector if possible.  The establishment of the balloon payment also provided the EDA with an opportunity to “touch base” with the borrower to review the financial performance of the business.

Wille stated that in the last few years, nearly every borrower has requested an extension of the established balloon payment date, likely due to the downfall of the economy.  To receive an extension, the primary lender (bank) would need to indicate that it is unable to extend the credit necessary to repay the EDA loan.  Wille said when determined necessary, borrowers have been typically been provided with a single, twenty-four month extension.

Discussion took place.  Kvamme stated that the EDA has encouraged the borrower to obtain bank financing as the EDA’s revolving loan purpose was to provide gap financing. 

Southworth felt the EDA needed to decide what their purpose was in financing revolving loans.

Revolving Loan Guidelines were reviewed.  It was agreed that a 30 year amortization of real estate loans is too long of a time period for Commercial projects.  The recommendation was to reduce the amortization of real estate loans to 20 years. 

Members discussed the need for a letter of denial from the primary lender indicating that they are unable to extend further credit or otherwise refinance the note.  Hansen didn’t feel that the borrower should have to supply multiple denial letters when asking to extend their balloon payment.  Zieman thought that the letter of denial should include a reason why the loan was denied.  It was determined that a single letter of denial from the participating lender would be sufficient.

It was agreed that the borrower be required to submit detailed financial information (P & L Statement, Balance Sheet & Taxes) annually for the EDA review.  Rundell felt that was a good way to stay in touch with the borrowers.

It was also agreed that balloon extensions for FF&E or Working Capital should be limited to 2 years.  I was agreed that balloon extension for loans secured by a mortgage would be appropriately extended for five years.

Wille will supply a copy of the suggested changes at the next meeting along with a Resolution adopting the changes.

Parking Lot #5 - Appraisal  - Wille indicated that there is a developer considering a project on Parking Lot #5.  The proposed development would consist of retail space on the ground level and residential housing on the second and third floors.  Wille said the property was appraised at $155,000   If a development was to happen, the Heritage Preservation Commission would review the façade plans.

Paid-In-Full -  Wille stated that N & D dba MGM Liquor, Traverse des Sioux Garden Center, and Dr, Laura Hulsebus have paid their Revolving Loans in full.

Shot Guns Plus  - Wille announced that Roger Braam, owner of Shot Guns Plus has died.  Wille stated that Braam has a Construction Mitigation loan with the City.  The loan was secured by a Promissory Note and Personal Guarantee.  Wille will forward the file on to City Attorney Jim Brandt.

Grey Bankruptcy – They City has not received any correspondence to date.

North Commercial Development – Wille stated that the City is not anticipating doing a project like “Discover 169” for lost business during construction.  Wille felt that it was important for the contractor of the project to have a “Business Advocate” to work with him and the businesses affected.

Adjourn

A motion was made by Hansen, seconded by Rundell to adjourn.  The meeting was adjourned at 12:59. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – May 02, 2013

Saint Peter Community Center – Governors Room

 

Call to Order

The meeting was called to order by President Mike Favre at approximately 12:03 p.m.

Attendance

Economic Development Authority members Mike Favre, Jay Hanson, John Kvamme and Ken Eichmann were in attendance.  Members James Dunn, Bob Southworth and Marilyn Rundell were unable to attend the rescheduled meeting.  Community Development Director Russ Wille and St. Peter Herald reporter Jessica Bies were also present.

Approval of Agenda

Motion by Hanson, seconded by Eichmann to approve the agenda of the meeting as presented by the Community Development Director.  All voting in favor, motion carried.

Approval of Minutes

A motion was made by Favre to approve the minutes of the January 24, 2013 EDA meeting as prepared and presented.  The motion was seconded by Eichmann.  With no noted corrections, all voted in favor, motion carried.

Chippewa Packaging / Exceed Packaging

The Community Development Director noted that Chippewa Packaging’s product recall should be settled in the very near future.  President Mike Steele indicated that it is likely that Chippewa would provide a credit to their client and commit to complete some future packaging work at a discounted price.

If the matter is not settled in the next two weeks, the Community Development Director indicated that it would be appropriate for the City Council to consider action to ratify the deferral of payments given the inability to pay on the loan during settlement negotiations.

Mr. Steele also suggested that he will attempt to arrange for an interim payment of the accumulated interest.

Grey Bankruptcy

Wille reported that the Brian Grey bankruptcy has converted from Chapter 13 to Chapter 7.  The Community Development department and City Attorney will continue to monitor the progress of the bankruptcy and correspond with the courts as necessary.

Hunter Hardwood

Wille reported that a $100 check was received from Hunter Hardwood.  Greg Schettler indicated that he will do everything possible to provide a regular monthly payment.  He suggested that he and his wife would not be willing to provide the City with a subordinate mortgage on their former residence which is being operated as a rental property.

Hanson suggested that the City establish a written repayment plan with the Schettlers.  It was further recommended that the City rewrite the note to alter the repayment provisions.  Hanson moved that the City rewrite the Schettler (Hunter Hardwood) note at 0% interest and establish a balloon payment due in 24 months.  The motion was seconded by Eichmann.  With no further discussion, Hanson, Eichmann and Kvamme voted in favor of the motion.  Favre noted that he must abstain from voting due to his employer’s participation in the original financing of the Hunter Hardwoods note(s).  The motion was approved.

Midwest Theater / St. Peter Cinema 5

Nicollet County is purchasing the St. Peter Cinema 5 real estate from Nicollet County Bank.  Nicollet County has subsequently provided notice that Cinema 5 must vacate the premises prior to June 30, 2013.

The EDA and St. Peter Development Corporation jointly own the theater equipment within the building.

Community Development Director Russ Wille will meet with St. Peter Development Corporation President Paul Tanis to develop a plan to retrieve, store and dispose of the secured equipment.  A report on the plan of action will be prepared by the next EDA meeting.

Greater Mankato Growth – RFP

The Community Development Director noted that he had the opportunity to prepare a proposal for a Fortune 500 company looking to develop a 75,000 square foot warehouse.  The opportunity was created due to Greater Mankato Growths work with site selection firms.  If the matter moves forward we should expect a site visit from the company later this month.

Tanis Brothers, LLC

Wille noted that Tanis Brothers, LLC has purchased the Comfort Systems (309 S. Minnesota Ave.) building.  Tanis Brothers would seek to renovate the second floor space into two apartments that will be offered for rent.  They are likely to seek access to the revolving loan funds.

Nash Finch / Econofoods

The construction of the stand-alone liquor store has begun in earnest on the Econofoods property.

Shopko

The construction of the 35,000 square foot Shopko building has begun in earnest on the land abutting Hallett Pond.

430 Ritt Street

The Community Development Director will work with Bolton & Menk to design a revised roof drainage system for the 430 Ritt Street property currently being leased to Jari, USA.  At this time the roof drainage is directed on to the asphalt parking lot on the north side of the building.  This area is in perpetual shade during the winter months and the roof drainage refreezes once it spills into the parking area.

The drainage will be redesigned to direct the flow of roof runoff into the stormwater structure within North 5th Street.

Handicapped Accessibility Micro Loan Program

The EDA had previously made a small loan to Ooodles Café to alter the sidewalk in front of their business.  The sidewalk was cut back from the entry and a “ramp” or slope was created to provide accessibility to the front entrance.  Before the correction, a small step was an impediment to those with mobility impairments or those using a wheelchair.

The City Administrator has asked that the EDA consider creating a micro loan program to assist in financing similar improvements to other businesses. 

The Community Development Director will attempt to write up a draft policy which establishes a micro loan program aimed at improving the handicapped accessibility of St. Peter businesses.

Miscellaneous

Hanson asked if anything had been resolved regarding the health club being operated at the River’s Edge Hospital.  He asked for an explanation as to why the use continues when it has been determined that the use violates the zoning ordinance. 

Adjourn

With no further business to conduct, Hanson moved that the meeting be adjourned.  Seconded by Eichmann.  All voting in favor, the meeting was adjourned.

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – January 24, 2013

Saint Peter Community Center – Governors Room

 

Call to Order

The meeting of the Saint Peter Economic Development Authority was called to order by Community Development Director Russ Wille at approximately 12:02p.m.  Roll call was taken with Bob Southworth, Marilyn Rundell, John Kvamme, and Ken Eichmann in attendance. Members James Dunn, Jay Hansen, and Mike Favre were absent.  City staff present was Community Development Director Russ Wille, Administrative Secretary Cindy Moulton, and City Attorney Jim Brandt.  Guests present were Jerry Pfeifer and Chuck Zieman.

Approval of Agenda

A motion was made by Eichmann, seconded by Southworth to approve the agenda. All voting in favor of the agenda, the motion carried.

Approval of Minutes

A motion was made by Rundell, seconded by Eichmann to approve the minutes of the December 27, 2012 EDA meeting.  With all voting aye, the motion carried.

Election of Officers

A motion was made by Kvamme, seconded by Southworth to nominate Favre as President.  Rundell moved that nominations close.  All members voting aye, the motion carried.  A motion was made by Kvamme, seconded by Eichmann to nominate Southworth as Vice President.  All members voting aye, the motion carried.  Wille explained that the Treasurer position is held by the City Finance Director and the Secretary by the City Community Development Director.   A motion was made by Southworth, seconded by Rundell to appoint the City Finance Director as Treasurer.   All members voting aye, the motion carried.  A motion was made by Kvamme, seconded by Southworth to appoint the Community Development Director as Secretary.  All members voting aye, the motion carried.

Brian Grey – Offer to Settle Debt

Wille explained that Brian Grey, dba Volk Electric has an outstanding revolving loan balance (two combined revolving loans) of $30,231.47.  He indicated that the last payment the City received was April 27, 2012. 

Wille stated the notes were initially secured by a mortgage subordinate to the first mortgage held by First National Bank.  The fixtures, furnishings and equipment were secured via security agreement.  Brian and Peggy Grey have also personally guaranteed the notes.

Wille said that FNB has taken possession of the property and has undertaken an auction of the other Grey business assets.  Wille pointed out that the City’s only remaining security is the personal guarantee of the note(s).

Wille stated that Grey’s have recently offered to settle the matter.  They have proposed that the City accept $6,000 as final payment on the debt.  Wille offered the EDA three alternatives; settlement, denial or request that Grey’s disclose assets.

City Attorney Brandt recommended the EDA request a disclosure of Grey’s assets in order to determine if Grey’s offer of $6,000 to settle the debt is fair.  He stated questioned the value of the personal guarantees suggesting that the Greys be asked to disclose the extent of the debt and all income and assets.  Brandt suggested that the EDA hold off on a judgment until additional information is obtained.

A motion was made by Eichmann, seconded by Rundell to direct the City Attorney to request Brian and Peggy Grey provide a disclosure of assets and guarantees for the company and individually.  All members voting aye, the motion carried.

REPORTS

430 Ritt Street- Financial Analysis  -  Wille shared an analysis of the financial performance of the leased 430 Ritt Street property.  The review suggests that the monthly lease payments adequately fund the operations and maintenance of the facility.  Wille will make contact with the tenant regarding the potential sale of the building as per the terms of the lease.

Northern Con-Agg-LLP  - Wille reported that the City Council will be acting on the Final Plat and a Development Agreement with Northern Con-Agg at their January 28, 2013 meeting.  He indicated that during his last conversation with Cocca Development (Shopko project), they requested the City waive the building permit fees as well as SAC/WAC/EAC charges. 

Hunter Hardwood – Loan Status – Wille stated that he has not had any recent contact with Greg Schettler.  A motion was made by Eichmann, seconded by Kvamme to initiate the collection process on Hunter Hardwoods revolving loan.

St. Peter Greenhouse -  Wille reported that Gerald Lunderberg continues to market his business.  Lunderberg has minimal balances on two loans.  He suggested that the cost of collection would exceed the debt.  Given that the property continues to be marketed for sale, Wille suggested that the EDA hold off on further efforts to collect the debt. 

St. Peter Community Childcare Center – Wille reported that the St. Peter Childcare note is due on February 1, 2013.  He indicated that they will be seeking a twelve month extension.  He stated they are current on their revolving loan but are significantly delinquent on their rent payments to the City.  Wille stated that their second site will be opening in the near future.

Cherry Berry -  Wille reported that the only contact he has had with Cherry Berry is with the sign company.

Mom & Pops - The ice cream shop has opened in Mankato.  The St. Peter site will sit idle for now.

Strip Mall -  Wille state that Econofoods will not be signing the alley vacation request because of a visibility issue if a structure is developed on the Nielsen property.  Wille announced that Econofoods has applied for a building permit to remodel the store.

Adjournment

A motion was made by Eichmann, seconded by Southworth to adjourn.  All in favor of the motion, the meeting adjourned at 12:44 p.m.