EDA MINUTES MARCH 24, 2016

Date: 
March 24, 2016

 

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – March 24, 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, Jay Hansen, Marilyn Rundell, and John Kvamme were in attendance.  Members Cory Abels and Jerry Pfeifer were absent. Community Development Director Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitor present was Bridget Blaido, owner of 4 the Team.

Agenda:
Motion by Rundell, second by Hansen to approve the meeting agenda as amended, moving New Business – Blaido Inc. (Historic Preservation RLF) ahead of Unfinished Business.  All voted in favor of the motion, the motion carried.

Minutes:
Motion by Kvamme, second by Dunn to approve the minutes of the regular February 28, 2016 meeting of the EDA as prepared and presented.  All voted in favor, the motion carried.

Blaido, Inc. (Historic Preservation RLF)
Bridget Blaido has relocated her business, 4 the Team, to 102 South Minnesota Avenue in order to accommodate needed space. In order to advertise her new location and to improve exterior aesthetics of the property, Blaido has sought and received approval of the Heritage Preservation Commission for the installation of two awnings. 

Sign Pro has quoted Blaido $7,392.19 for the cost of the awnings and installation.  In anticipation of the revised revolving loan guidelines, Blaido has requested that the EDA finance up to 90% of the historic façade enhancement.  She has requested a $6,650 loan with 0%   interest and amortized over 7 years.  Wille indicated that Blaido’s financials were reviewed and the committee recommends, that upon approval of the loan, the EDA obtain a promissory note and personal guarantees from Bridget and her spouse Tom.

Wille stated that the EDA has discussed providing partial loan forgiveness to encourage utilization of the program and to maintain the significant historical assets within the downtown.  Wille said that the EDA needed to decide whether or not to recommend partial forgiveness to the City Council in anticipation of changes to the loan program guidelines.

Discussion was held.  Rundell asked which set of guidelines/policy would be used for this loan.  Kvamme questioned whether or not 50% of the loan would be forgiven.  Hansen suggested the loan closing be held after the new policy is adopted.

It was recommended that the loan request be approved under the present guidelines.  It was suggested that a new promissory note be executed under the new guidelines should they be adopted.

A motion was made by Hansen, seconded by Dunn to introduce Resolution No. 2016-03 entitled, “A Resolution Recommending Approval Of A $6,650 Façade Renovation Revolving Loan To Blaido, Inc. (d.b.a. 4 the Team) To Partially Finance The Installation Of Awnings At 108 South Minnesota Avenue” with the following amendments:  WHEREAS, a subcommittee of the EDA has reviewed the business financial reports of 4 the Team and have suggested that the business operations and cash flows are sufficient to merit loan approval; and 2) The Council directs staff to apply any modification of the Historic Preservation Accessibility Enhancement Loan Program, including partial loan forgiveness, to this loan should that program be modified by the Council in April or May of 2016.  Members Rundell, Kvamme, Hansen and Dunn approved the resolution as amended.  Member Southworth abstained.  The Resolution was passed and adopted.

Historic Preservation/Accessibility Enhancement RLF
The EDA has worked since October, 2015 reviewing and making amendments to the Revolving Loan Fund Guidelines.  Wille stated that he has incorporated the recommended changes to the guidelines for EDA review.

Discussion was held.  Kvamme asked if the EDA would borrow a business funds for a building project (eg. Roof replacement), if they had recently obtained a Façade Enhancement loan.  Southworth said the applicant could apply for a loan from the traditional revolving loan account.

A motion was made by Dunn, seconded by Rundell to approve the guidelines that were amended at the February 26, 2016 meeting.  Kvamme asked if the EDA should establish a budget to control the amount of funds dispersed per year.  Southworth suggested the loan program be reviewed in January, 2017.  If the program is well received there may be a need to establish a budget.  All members voting aye, the motion carried.

EDA Revolving Loan Fund Guidelines 
The amended Revolving Loan Fund Guidelines were reviewed.

The EDA amended item i. under 9) Project Review to read as follows, “Project financing provided by a conventional lender and applicant equity shall equal at least 60% of the identified project costs.  In the absence of conventional lender participation, the applicant must provide correspondence from a lender indicating that they are unable to participate or otherwise provide project funding as per their policies or regulations”.

A motion was made by Hansen, seconded by Dunn to approve the guidelines as amended.  All members voting aye, the motion carried.

Reports:
 

Hey Diddle Diddle Daycare, LLC- Heidi Scheurer has closed on her bank financing. Scheurer will open the daycare in April and has expanded her operation to accommodate 12 infants.

Community Core Partners, LLC- Window installation will begin after Easter.

Building Better Neighborhoods- Wille reported that the bids received for the infrastructure of the potential Traverse Acres Subdivision came in below the estimate.

JOBZ Reports – JOBZ reports are due March 31, 2016. Reports will submitted for EI Microcircuits and MS/GS.  A report was submitted for Kottke Real Estate, considered a Non-JOBZ Project was submitted for Kottke Real Estate Holdings, LLC.

Chippewa/Exceed Packaging – Wille reported that MS & GS Revolving Loan will balloon this fall.  He stated that Mark Steele has contacted him for the payoff amount.  Wille also indicated that Exceed and Chippewa are delinquent on their Revolving Loan Fund payments.  Wille has encouraged Exceed to pay off their loan which has a balance of approximately $1,800.

Broadway Streetscape – Wille announced that MNDOT will likely fund the Broadway streetscape improvement in 2017 when the Hwy 99 Bridge is repaired.  He indicated that the diagonal parking in front of The Pulse will likely be changed to parallel parking and one of the entrances to the parking lot closed   .    

JOBZ Reports – Final Submissions- Wille reported that JOBZ programs expires on December 31, 2015.  Wille said reports need to be filed for EI Microcircuits and Chippewa/Exceed.

Adjourn:
With no further business before the EDA, a motion was made by Pfeifer, seconded by Dunn to adjourn.  The meeting adjourned at 12:49 pm