EDA REGULAR MEETING MINUTES – January 22, 2015

Date: 
January 22, 2015

CITY OF SAINT PETER, MINNESOTA
Economic Development Authority
REGULAR MEETING MINUTES – January 22, 2015
Saint Peter Community Center – Governors Room

Call to Order

The regular meeting of the Saint Peter Economic Development Authority was called to order by Community Development Director Rosten Wille at approximately 12:00 p.m.  Roll call was taken with Marilyn Rundell, John Kvamme, Chuck Zieman, James Dunn, Bob Southworth, Jay Hansen and Cory Abel in attendance.  City staff present was Community Development Director Russ Wille and Administrative Secretary Cindy Moulton.  Visitor present was Mike Steele, co-owner of Chippewa Packaging. 

Election of Officers

A motion was made by Abel, seconded by Kvamme to nominate Southworth as President.  Rundell moved that nominations close.  All members voting aye, the motion carried.  A motion was made by Kvamme, seconded by Dunn to nominate Rundell 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 Zieman, seconded by Hansen to appoint the City Finance Director as Treasurer.   All members voting aye, the motion carried.  A motion was made by Rundell, seconded by Dunn to appoint the Community Development Director as Secretary.  All members voting aye, the motion carried.

Approval of Agenda

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

Approval of Minutes

A motion was made by Abel, seconded by Kvamme to approve the minutes of the October 23, 2015
Regular EDA meeting.  All members voting aye, the motion carried.


Exceed/Chippewa Packaging – Balloon Extension

Chippewa and Exceed Packaging have revolving loans from the EDA.  Wille explained that in the past, the City has extended balloon payments, deferred payments and accepted interest only payments to allow the companies to remain solvent.  Chippewa is requesting a two year extension on the due date each of their two balloon payments.  Exceed is requesting that the EDA approve payments of $1,110.21 per month until the note is retired (balance $4,224.22).  

Wille explained that Chippewa Packaging has demonstrated a net profit over the last two years.  While business has improved, Chippewa is unable to make their balloon payments or otherwise conventionally refinance their debt.

Wille stated that Exceed Packing finances continue to improve but has again reported a net loss after expenses and depreciation.  While business continues to marginally improve each year, the recovery and growth lags behind Chippewa Packaging. 

Mike Steele addressed the EDA.  He stated that Chippewa has exceeded the established JOBZ requirements.  He said the number of fulltime employees continues to increase in both companies.  At the present time Chippewa is running shifts twenty-four hours per day.

Steele reported that Chippewa is in need of warehouse space.  He indicated they are shipping pallets of product to Mankato for storage which is very costly.  Zieman suggested that Steele speak to Jim Tate regarding storage space.  Wille said that he would call Volk Transfer and ask if he would be interested in constructing a warehouse in Saint Peter.  He also said he would approach the Development Corporation regarding possible warehouse construction.

Wille suggested approval of the resolution.

A motion was made by Abel, seconded by Kvamme, to introduce Resolution No. 2015-01 entitled, “A Resolution Modifying The Terms Of The Two Revolving Loans Previously Provided To Chippewa Packaging, Inc. And The One Revolving Loan Provided To Exceed Packaging, Inc.”.  Members Zieman, Abel, Southworth, Dunn, Kvamme, and Rundell voting aye, Member Hansen abstaining.  The Resolution was passed and adopted. 

REPORTS

Seitzer Payoff – Wille reported that Greg and Jan Seitzer paid their revolving loan for their property located at 302 South Minnesota.

Mankato Clinic – The Mankato Clinic has made their last payment via the collection of Tax Increments.

430 Ritt Street -  Wille stated that he checks the Ritt Street building daily to ensure that the heating system is operation and the building securred.  He indicated that the temperature is set at 47 degrees.  Fisher Commercial continues to market the property.  There has been a small number of inquiries at this time.

Parking Lot #5 -  Wille said that the development group from Lakeville that was interested in Parking Lot #5 has withdrawn.  He indicated that another group may be interested in development of the property.  Brunton Architects (North Mankato) owns the developed plans and they are seeking a developer / building to constructed the designed downtown residential / commercial structure.

St. Julien/Old Minnesota Roundabout -  Wille said that there was an appraisal done on the Carquest property.  He indicated that eminent domain is the likely option for the City to pursue in order to obtain enough property for the roundabout.  

Highway #22 Bridge – Wille announced that construction will take place on the Highway 22 bridge this summer.  The project is estimated to take 3 to 4 months.  He stated there will be highway construction projects done in or near Saint Peter for the next 5 years.

Inspire Bridal Boutique – The City Council approve the refinancing of the Inspire Bridal Boutique note in October, 2014.  Julie Larson (owner) has worked with Hometown Bank to refinance the private debt associated with the business start-up.  Negotiations have been completed and the Community Development Director intends to accomplish the refinancing of the municipal debt on February 2nd.

Adjournment
A motion was made by Zieman, seconded by Abel to adjourn.  All in favor of the motion, the meeting adjourned at 12:45 p.m.