EDA MINUTES - FEBRUARY 23, 2017

Date: 
February 23, 2017

 

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – February 23, 2017
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 p.m. by President Bob Southworth.  EDA Southworth, Jay Hansen, Jerry Pfeifer, Marilyn Rundell, and James Dunn were in attendance.  Members John Kvamme and Cory Abels were absent.  Community Development Director Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitor Brad DeVos was in attendance representing the Saint Peter Child Care Center.

Agenda:

A motion was made by Hansen, seconded by Dunn to approve the meeting agenda with the addition of two reports:  Re-Max building and Change Order – spec homes.  All voting in favor, the agenda was approved as amended.

Minutes:

A motion was made by Hansen, seconded by Dunn to approve the Minutes of the January 26, 2017 meeting as presented.  All voting in favor, the Minutes were approved as presented.

St. Peter Community Childcare Center – SPCCC (Balloon Extension Request)

Wille reviewed the history of the SPCCC Revolving Loan.  He stated that the EDA approved an interest free loan in the amount of $35,000 in 2007.  The EDA initially set payments at $100 per month for the first 24 months because SPCCC’s cash flows would be stressed.  The payments were increased to $200 per month and currently SPCCC is paying $300 per month in order to retire the debt.

Wille stated that the EDA has extended SPCCC’s balloon payment three times (balloon payment schedule February 1, 2013, extended to April 1, 2015, and extended to April 1, 2017).  The SPCCC has once again requested that the balloon payment be extended for 24 months. 

Brad DeVos, representative from SPCCC addressed the EDA.  DeVos stated that the Child Care Center has signed a lease with the City to occupy two additional rooms in the Community Center.  He said with the addition of the two rooms, it will allow consolidation of their mobile classrooms that are located on Jefferson Avenue with the Community Center location.

DeVos explained by consolidating the daycare locations it would save money on meal delivery and teachers travel from one site to another.  He also added that it would make it easier for families that have more than one child in the daycare that utilize both sites.

DeVos indicated that SPCCC is requesting the extension to help with the consolidation of the two daycare sites.  The daycare’s intent is to pay off the loan in 24 months, when due to avoid asking for another extension.

Wille said that he did not receive a letter from a bank stating denial of the loan.  He did note that he spoke with two local banks and they indicated they would not refinance the loan if it was their customer. 

Wille asked if the EDA would recommend adding interest to the repayment.  DeVos responded by saying SPCCC expected to pay interest.

Dunn said that he was concerned with SPCCC’s financial track record. 

DeVos said that he would like to keep the payments at $300 per month to help with the transition.  He indicated that the daycare has money in reserves but would like to keep it for the expansion.

Southworth wondered if the payment was increased if it would affect SPCCC’s cash flow.

Hansen said that it was positive for the daycare to have reserves and felt that they were doing a good job with their financials.

A motion was made by Hansen, seconded by Pfeifer to introduce Resolution No. 2017-02 entitled, “Resolution Recommending The Extension Of A balloon Payment For A Revolving Loan Previously Provided To The Saint Peter Community Childcare Center” with the addition:  (2)  An interest rate of 3.75% shall be established beginning April 1, 2017 with payments remaining at $300 per month.  Members Pfeifer, Hansen, Southworth and Rundell voting aye, Member Dunn voting nay, the Resolution was passed and adopted.

Pfeifer agreed there is a shortage of childcare.  He felt that the local banks should form a consortium and find a building to provide daycare.  Pfeifer suggested the Whiskey River building.  Some EDA members felt that the cost to remodel the building to meet daycare standards would be too costly.

Reports

Traverse Green – Mankato Home Builders Show (3/17/17 – 3/19/2017) – Wille announced that a Home Builders Show is scheduled to be held at the Verizon Center in Mankato March 17 – 19, 2017.  Wille stated that the City and Southwest Minnesota Housing Finance will have a booth in order to promote Terrace Green Subdivision.  Representatives from the City and Southwest Minnesota Housing Finance will staff the booth.

Traverse Green - Wille stated that a purchase agreement has been signed for the first bare lot in Traverse Green Subdivision. 

Mankato Magazine – Wille reported that Mankato Magazine wrote a story on St. Peter’s Third Street Tavern.  Carter Person, manager of the restaurant, mentioned the City of St. Peter as being helpful and making it comfortable for him to open a business in town.  

Former Library Lot (corner of Front Street and Nassau) – The City Council is considering the sale of the former library lot to Paul Tanis.  Wille stated that the first draft of the purchase agreement has been completed.  Wille indicated that Tanis does not have a project at this time but would like to have commercial space on the main floor and rentals above.

Re-Max – The Heritage Preservation Commission has approved a request submitted by Megan Willette to paint the EIFS on the south side of her building located at 424 South Minnesota.  Wille indicated that she will be applying for an EDA Façade Loan.

Spec Home Construction – Wille stated there have been two change orders on the spec homes which has resulted in a small savings.

Adjourn:

With no further business before the EDA, a motion was made by Pfeifer, seconded by Hansen to adjourn.  The meeting adjourned at 12:35 p.m.