EDA MINUTES - Oct. 27, 2016

Date: 
October 27, 2016

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – October 27, 2016
Saint Peter Community Center – Governors 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, Jerry Pfeifer, Cory Abels, Marilyn Rundell and John Kvamme were in attendance.  Members James Dunn and Jay Hansen were absent. Community Development Director Wille and Administrative Secretary Cindy Moulton were also in attendance.

Agenda:

 A motion was made by Abels, seconded Pfeifer to approve the agenda as presented.  All members voting aye, the motion was approved.

Minutes:

A motion was made by Pfeifer, seconded by Kvamme to approve the July 27, 2016 Minutes with the following amendments; correct spelling of Corey Abels last name and the addition, “Kvamme asked for a complete list of approved trees”.  All members voting aye the Minutes were approved as amended. 

A motion was made by Pfeifer, seconded by Kvamme to approve the minutes of September 1, 2016 as presented.  All members voting aye the Minutes were approved.

Speculative Homes – Construction Management Agreement

Wille stated that construction of the EDA spec homes has been started.  He indicated that the Construction Management Agreement by and between the EDA and SWMHP has not been executed. 

The agreement calls for SWMHP to monitor and inspect the construction of the three spec homes.  They are to ensure that the construction proceeds according to the plans and specs included in the bid documents.  They will process payment requests from the general contractor and administer the terms of the construction contracted executed by Schrom Construction and the EDA. 

Wille stated that the agreement will establish a construction management fee of $7,500 per spec home built. 

A motion was made by Pfeifer, seconded by Abels to introduce Resolution No. 2106-11 entitled, “Resolution Authorizing The President Of The Economic Development Authority (EDA) To Execute Construction Management Agreements By And Between The EDA And The Southwest Minnesota Housing Partnership (SWMHP) For Speculative Home Construction Management Services”.  With all members voting aye, the Resolution was passed and adopted.

CBD/ADA Loans – Retroactive Forgiveness Provision

Wille stated that the EDA and City Council were considering amendments to the Historic Preservation loan program.  During that period, four of the five Historical Preservation Loans were approved and closed.  Wille said that Keith and Carrie Stelter’s loan was approved before discussion took place on revising the guidelines.

The City Council approved a revised Historical Preservation Loan Program.  The revised program provides for partial loan forgiveness for those who honor the terms of loan repayment.  Wille stated that the existing five loan recipients have requested that the EDA and City Council retroactively apply the forgiveness benefit to their individual loans.

Rundell asked if Stelter’s loan should be considered because the loan was awarded in 2014, before the program was discussed.

A motion was made by Abels, seconded by Rundell  to introduce Resolution No. 2016-12 entitled, “A Resolution Recommending That The City Council Apply The Partial Loan Forgiveness Of The CBD/Accessibility Enhancement Loan Program To Four Previously Approved Loans” with the omission of Keith and Carrie Stelter’s loan and providing an addendum to the approved loans.  All member voting aye, the Resolution was passed and adopted.

Kvamme asked what the EDA’s thoughts were on, suggesting that applicants applying for free money, be asked what they have in mind for ADA compliance prior to approving the loan request. He felt this may push the applicant in that direction.

Rundell agreed that it would be nice to have accessibility to the businesses.

Kvamme felt that the façade and ADA enhancement loan should be expanded to the entire downtown and not just the Historic Preservation District. Kvamme also felt that a similar program should be established for historic homes in St. Peter.

Pfeifer agreed on a 0% loan but not expanding the forgiveness.

Reports

Housing Condition Survey - Wille indicated that he is working with Minnesota State grad students in determining houses that need improvements within St. Peter (rentals vs owner occupied).  He stated that the students will give a presentation to the City Council on December 5, 2016.

Change Order – Spec Homes – Wille reported there was a change order on the spec homes which saved $50 per house.  He also indicated they are looking at removing the storm doors which would result in additional savings.

Pfeifer asked if there was any consideration to place lot numbers on the bare lots.  He indicated that it has not been done in the past.  Wille said he would speak to Jesse and James of SWMHP.

Generation Boutique -Chelsie Salonek, owner of Generation Boutique, has paid off her revolving loan.

Chippewa Packaging Balloon Extension Request –Chippewa has a balloon payment due on December 31, 2016.  EDA members requested a letter from the bank stating Chippewa is unable to obtain additional credit.

Speculative Home – Marketing Brochure - Southwest Minnesota Housing Finance Agency (SWMHP) created the marketing brochure for the spec homes in Traverse Green.

Broadway Streetscape  - The Broadway Streetscape project between Hwy 169 and the 99 Bridge will coincide with the bridge repair next year.  Wille stated there was an open house scheduled for October 27, 2016 in the Senior Center.  Wille indicated that he met with the abutting business owners and their biggest concern with alley closure of the access between the Woolen Mill property and Jakes Pizza.

Lodging Market Study – Patek Hospitality is conducting a study whether there is a market for additional lodging in St. Peter.  The cost of $3,000 is being divided between Community Development and the Development Corporation.

Pfeifer asked if Parking Lot #5, Hallet Pond site, 4.4 acres located next to Ed Allen’s property, or the old KFC site along with property south of KFC was suggested to the perspective developer.

Texaco – Wille was asked to call the county and ask for an update on the sale of the property.

Daycare Center – Community Center Space – Abels asked if the EDA should discuss the availability of daycare space in the Community Center since the EDA has lent money to one of the interested daycares.  

Adjournment

A motion was made by Abels, seconded by Pfeifer to adjourn the meeting.  All members voting aye, the meeting adjourned at 12:54 p.m.