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CITY OF SAINT PETER, MINNESOTA
OFFICIAL PROCEEDINGS
MINUTES OF THE REGULAR MEETING
ECONOMIC DEVELOPMENT AUTHORITY MEETING
August 28, 2008
Pursuant and due call and notice thereof, the Regular meeting of the Economic Development Authority (EDA) of the City of Saint Peter was conducted in the Governor’s Room at the Saint Peter Community Center on August 28, 2008.
A quorum present President Mike Favre called the meeting to order at 12:00 p.m. The following members were present: Mike Favre, Greg Seitzer, John Kvamme, Paul Tanis and Sam Gault, Jr. City staff present were; Director of Community Development Rosten Wille and Administrative Secretary Cindy Moulton. Guest present was Mark Steele – M/S & G/S Enterprises.
Approval of Agenda
A motion was made by Kvamme, seconded by Seitzer, to approve the agenda. With all in favor, the agenda was approved.
Approval of Minutes
A motion was made by Kvamme, seconded by Seitzer to approve the minutes of July 24, 2008 with the date change to July 24, 2008, on the heading of the minutes. With all members voting aye the minutes were approved as amended.
Unfinished Business
M/S & G/S Enterprises – Designation of Subordination
Wille stated that the City Council adopted a resolution modifying the terms of a $250,000 loan previously made to MS & GS Enterprises. The subordination of the loan was deemed necessary to allow MS & GS to access bank funding necessary to finance a 9,000 square foot addition to the packaging plant.
Wille said that the adopted resolution authorized the subordination of the City’s mortgage to a new loan proposed to be provided by Voyager Bank in the principal amount not to exceed $1,770,000. Wille stated that the loan between MS & GS and Voyager Bank has not been closed because they were unable to agree on the final terms and conditions of the new loan.
Wille stated that MS & GS has approached US Bank and Pioneer Bank regarding the necessary construction funding. Pioneer Bank has agreed to provide the necessary loan utilizing the SBA’s 504 loan program. Wille said the proposed terms require that the City Council consider an amendment to the terms contained in City Council Resolution No. 2008-101. Wille said the SBA loan is proposed to be amortized and repaid on a ten year schedule. He said that the SBA, through Pioneer Bank, would require that the City of Saint Peter extend the repayment of the mortgage to the same time period.
Wille stated that the overall cost of the project has increased significantly due to increases in the cost of construction materials and transportation costs therefore Pioneer Bank expects the principal amount of a new loan would need to be increased to $1,875,000. The post-construction, appraised value of the MS & GS property is expected to be $2,375,000.
Mark Steele commented that he did not have another appraisal completed.
Kvamme asked why MS & GS doesn’t roll the $250,000 revolving loan into the Pioneer Bank loan. Kvamme said the purpose of the EDA revolving loan is to provide a short term bridge loan, not a 14 year loan.
Tanis asked why the other banks were not taking the risk.
Steele said they are hesitant because it is a relatively new company, the history hasn’t been too positive, and with the economy the way it is, it is tougher to obtain a loan.
Kvamme suggested a five year loan which he said would pressure Steele to find a commercial loan.
A motion was made by Tanis, seconded by Favre to introduce Resolution No. 2008-09 entitled, “A Resolution Modifying The Terms Of A $250,000 Revolving Loan To Mark & Geri Steele” with the following amendment; (1) The terms of a $250,000 loan to MS & GS Enterprises are amended to extend the date of the required balloon payment for an addition 5 year period”. Members Favre, Seitzer, Kvamme, and Tanis voting aye, member Gault abstaining, the Resolution was passed and adopted.
New Business
Ooodles – Revolving Loan Fund Application
Wille stated that Dwight Schmit has submitted a revolving loan request in the amount of $2,200 to partially finance improvements enhancing handicapped accessibility to Ooodles restaurant. Schmit has received a quote in the amount of $1,860 to remove and reinstall the sidewalk along the Third Street façade and a quote of $400 to replace the Third Street doorway into the restaurant.
Wille recommended the $2,200 loan be approved, amortized on a three (3) year schedule at a rate of 5% interest, with monthly payments of $65.94. Wille also recommended that the note be secured by the promissory note and personal guarantee executed by Mr. Schmit and his wife.
A motion was made by Tanis, seconded by Kvamme to introduce Resolution No. 2008 –10 entitled, “A Resolution Recommending Approval Of A $2,200 Revolving Loan To Dwight Schmit To Partially Finance Accessibility Improvements”. Members Favre, Seitzer, Kvamme, and Tanis voting aye, Member Gault abstaining, the Resolution was passed and adopted.
Reports
Ron Michaels Revolving Loan (Hometown Travel Building) - Ron Michaels has paid off the Hometown Travel building (400 South Third Street) revolving loan.
Kwik Trip/Autotronics - Wille reported that Kwik Trip has closed on the purchase of Southside Motel and their intent is to demolish the structure as soon as possible. Wille stated that utility issues need to be addressed before the demolition can occur. He also added that MNDOT would be closing the south entrance/exit from the lot onto Hwy 169. He mentioned that Kwik Trip was also negotiating the elimination of the billboard on the lot.
Wille stated that Kwik Trip has made an offer to Terry Tacheney for the purchase of Autotronics. He said that Tacheney has not accepted or declined the offer. Tanis asked Wille to set up a meeting between Tacheney, Wille and himself.
KFC/Traverse des Sioux Garden Center (Dranttel Street Construction) - Wille said that bids were received for the Dranttel Street construction and the low bid came within $2,500 of the engineers estimate. Wille reported that the proposed assessments came within $500 of the estimate. A pre-construction meeting will be held and Traverse des Sioux Garden Center owner Fred Struck will be attending.
Municipal Parking Lot #5 (Food Coop) - Wille stated that I & S Engineering is putting together preliminary estimates for a two and three story building to be located on Parking Lot #5. Wille indicated that a meeting has been scheduled for Wednesday, September 3rd. Wille stated that he met with Randy Gustafson (representing his father Bill Gustafson) and Mark Bollum that have buildings/businesses located on the same block as Parking Lot #5 and they expressed their concern regarding the lack of parking. Gustafson stated that his father over committed to providing parking spaces in the lease to the current tenants.
Carlstrom/Lidstrom – North Industrial Park (Option) – Carlstrom/Lidstrom have an option on a lot in the North Industrial Park for possible new construction for Creation Technology. Wille indicated that a local Saint Peter person is looking at purchasing the current Creation Technology facility. Wille stated that an appraisal is being conducted on the building.
Leo Hoffman Center- North Industrial Park (Option) - Wille reported that the Leo Hoffman Center has an option on a lot on Marshall Street in the North Industrial Park.
Benedictine Health Systems – Hospital Campus (Option) - Wille stated that Benedictine has an option on a parcel of property on the health care campus to develop housing. He stated the option expired August 5, 2008 but that it has been renewed for 60 days.
Ecumen – First Lutheran Church - Wille reported that First Lutheran Church has had two preliminary housing drawings done for either sites.
Regional Treatment Center (Layoffs) - Tanis stated that he was the moderator for the Regional Treatment Center public meeting. He indicated that the goal of the meeting was to be community oriented. He said there were presentations by various departments and questions and concerns were addressed. Tanis said there will be another round of cuts this year. He credited Senator Kathy Sheran and Representative Terry Morrow.
Tanis suggested that a job fair be held for various St. Peter Industries (EI Microcircuits, Creation Technologies, Jiraff Industries, etc.) He indicated that the job fair could be geared towards those being laid off at the Regional Treatment Center. He suggested that the Development Corporation and Ambassadors contribute towards the cost of the job fair.
EDI Meeting - Wille reported that an EDI meeting will be held on Friday, September 5, 2008. He said that everyone invited has responded that they will be attending the meeting.
Chapel View - Wille stated that Richard Black is negotiating the purchase of property owned by Westerman. The property is located West of the Church of Saint Peter.
Bart Wheelborg – Wille stated that Bart Wheelborg is looking for office space.
ISJ - Wille reported that the groundbreaking for Rivers Edge Health Care Center will be held at 4:00 today.
Adjournment
A motion was made by Tanis, seconded by Seitzer to adjourn the meeting. The meeting adjourned at 12:43 p.m.
CITY OF SAINT PETER, MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES OF THE REGULAR MEETING
July 24, 2008
Saint Peter Community Center – Governors Room
The meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:00 p.m., Thursday, July 24, 2008. Roll call was taken with President Favre, Paul Tanis Jr., John Kvamme and Ken Eichmann in attendance. EDA members Seitzer, Southworth and Gault were absent. Community Development Director Russ Wille was also in attendance.
Motion by Kvamme to approve the meeting agenda. Seconded by Eichmann, all voting in favor, motion carried.
Motion by Tanis, seconded by Kvamme to approve the minutes of the May 7, 2008 meeting of the Economic Development Authority as submitted. With no further discussion, all voting in favor, motion carried.
Motion by Kvamme, seconded by Eichmann to approve the minutes of the May 22, 2008 special EDA meeting as submitted. With no further discussion, all voting in favor, motion carried.
DAYCARE LOAN PROGRAMS
Wille noted that he has met with EDA President Favre and member Southworth to prepare proposed terms and conditions of an EDA loan program targeted to assisting day care operations. The working group has proposed two programs.
The first loan pool would target existing day care providers. Interest free loans of up to $1,000 ($200 / child) would be available to assist in financing the purchase of fixtures, furnishings and dedicated appliances. The loans would be repaid if the day care facility were to close within the first five years of the loan.
The second pool would provide loans of up to $10,000 ($1,000 / child) for the start-up of a new day care operation. The loan can be used to finance fixtures, furnishings, dedicated appliances and building renovations required by licensure. The loan would be forgiven at a rate of 10% / year and would not need to be repaid if the day care remained in operations for the full ten years. Loans of more than $2,500 would be secured by a subordinate mortgage and personal guarantee.
Both loan programs would require that the borrower provide a copy of a recent credit report. The new facility loans would require that there be no unpaid real estate taxes due. Both loans would also require that the borrower agree to participate in the Kindergarten Readiness program as well as the Follow-Along Program offered by Nicollet County Public Health.
Motion by Tanis, seconded by Eichmann to adopt the loan programs as designed and to recommend the same to the City Council. All voting in favor, motion carried.
MS & GS ENTERPRISES - Wille announced that MS & GS has declined the proposed loan terms provided by Voyager Bank. They are currently seeking alternative funding from either US Bank or Pioneer Bank. A decision on the financing is expected before the August meeting of the EDA. It is suggested to forgo action on the other Chippewa or Exceed loans until such time as the primary financing is in place to allow for the building expansion.
MGM LIQUOR WAREHOUSE - The single family home is scheduled to be moved in the very near future. The loan has been closed and construction / demolition is to begin in the very near future.
VET RX HOLDINGS - The City is preparing for creation of a new tax increment financing district which would assist in partially financing the building improvements. Both the School District and Nicollet County have graciously agreed to waive the required 30 hearing notice to allow the project to move forward. The Community Development Director is preparing a Development Agreement and a pubic hearing has been scheduled for August 11th.
ISJ / MAYO - The lease has been executed for ISJ / Mayo to build a clinic connected to the Saint Peter Community Hospital. The Sunrise Drive location has been rezoned to the C-5 Business / Professional Office district.
PARKING LOT #5 - I & S Group is finalizing a preliminary design that could be used to prepare a construction cost estimates. I & S is exploring both a two and three story option. It is presumed that the Food Coop would occupy the ground floor. Second floor offices and third floor residential options are being explored.
AMERICINN - The Americinn just recently completed an expansion of their mechanical / utility operations.
PHEASANT RIDGE ASSISTED LIVING - The Pheasant Ridge Assisted Living operations are planning to expand their building and services. Approximately 8 new rooms will be added to the operations. A public hearing regarding issuance of a conditional use permit is scheduled.
CREATION TECHNOLOGIES - A prospective buyer has been found for the existing Creation Technologies facility on Ritt Street. The prospective buyer is having the property appraised. It appears that the deal may move forward if the appraisal supports the asking price.
LEO A. HOFFMAN CENTER - The Leo A. Hoffman Center has executed an option to purchase a lot on the Marshall Street cul-de-sac in the North Industrial Park. The center is planning to expand their services in Saint Peter. Their architect is preparing a potential site plan for municipal review.
KWIK TRIP - Kwik Trip’s acquisition of the hotel site appears imminent. Kwik Trip would seek to demo the site in the near futures. Construction would likely be undertaken in the spring once the frost is out of the ground.
ECUMEN - Ecumen continues to work with the 1st Lutheran Church regarding construction of senior housing services. If the 1st Lutheran Church and Ecumen are unable to agree on the terms and conditions of their agreement, it is likely that Ecumen would seek to work in concert with the City of Saint Peter to identify and secure and alternative site.
OOODLES - The owner would like to provide for sidewalk improvements which would provide greater handicapped accessibility to his business. A cost estimate is being prepared for EDA consideration at the August meeting.
GRAIN MILLERS - Grainmillers (dba Access Marketing) has constructed two additional grain storage structures at their Ritt Street and Gault Street location.
ADJOURN
With no further business to conduct a motion was made by Tanis to adjourn. Seconded by Kvamme, motion carried. The meeting was adjourned at approximately 12:52 p.m.
CITY OF SAINT PETER, MINNESOTA
OFFICIAL PROCEEDINGS
MINUTES OF THE SPECIAL MEETING
ECONOMIC DEVELOPMENT AUTHORITY MEETING
May 22, 2008
Pursuant and due call and notice thereof, Regular meeting of the Economic Development Authority (EDA) of the City of Saint Peter was conducted in the Governor’s Room at the Saint Peter Community Center on May 22, 2008.
A quorum present Vice President Bob Southworth called the meeting to order at 12:00 p.m. The following members were present: Ken Eichmann, Greg Seitzer, Bob Southworth and John Kvamme. City staff present were Director of Community Development Rosten Wille and Administrative Secretary Cindy Moulton. Guests present were Mary Snyder DDS and Laura Hulsebus, DC dba MSLH Real Estate Management, LLC, Ray and Greg Dembouski – MGM Liquor Warehouse, Mark Steele – M/S & G/S Enterprises.
Approval of Agenda
A motion was made by Kvamme, seconded by Seitzer, to approve the agenda. With all in favor, the agenda was approved.
Approval of Minutes
A motion was made by Kvamme, seconded by Eichmann to approve the minutes of March 27, 2008. With all members voting aye the minutes were approved as presented.
A motion was made by Kvamme, seconded by Seitzer to approve the minutes of May 7, 2008. With all members voting aye, the minutes were approved as presented.
New Business
MSLH Real Estate Management, LLC – RLF Application
Wille stated Laura Hulsebus, DC and Mary Snyder, DDS have formed MSLH Real Estate Management, LLC, in order to purchase and own the real estate located at 206 West Walnut. He stated that Hulsebus Chiropractic and Snyder Dental Clinic will both lease space from the LLC.
Wille said MSLH has submitted a revolving loan fund application requesting $62,000 to help with the acquisition of the property. Wille stated the purchase price of the property has been set at $310,000. He indicated that an appraisal was completed by Brovold & Company and a value of $350,000 was established.
Wille stated that the note would be proposed to be collateralized in through the acquisition of a second mortgage on the real estate. He said that Nicollet County Bank has approved a loan of $248,000 and would be provided with a first mortgage recorded against the property. He also stated that the note would be further collateralized in the form of a personal guarantee to be executed by Dr. Hulsebus and Dr. Snyder and their spouses.
Wille suggested that the $62,000 note be amortized on a 30 year scheduled and bear an interest rate of 3% and be repaid via balloon payment after 5 years.
A motion was made by Eichmann, seconded by Southworth to introduce Resolution No. 2008-05 entitled, “A Resolution Recommending Approval Of A $62,000 Revolving Loan To MSLH Real Estate Management, LLC to Partially Finance The Purchase Of The Real Estate Located at 202 – 206 West Walnut Street”. All members voting aye, the Resolution was passed and adopted.
MGM Liquor Warehouse – RLF Application
Wille stated that N & D of St. Peter, LLC has submitted a revolving loan fund request in the amount of $135,500 to partially finance the expansion of the MGM Liquor Warehouse building located at 100 North Minnesota Avenue. Wille said that N & D of St. Peter, LLC intends to construct a 4,000 square foot addition to the store. He said that Dembouski has purchased the residential structure located directly west of the existing MGM store to provide for sufficient land. He said the fate of the house is undetermined, as it will either be removed or demolished. Wille stated that the Heritage Preservation Commission (HPC) has reviewed and approved the plans to add on to the structure.
Wille stated the estimated cost for the 4,000 addition has been determined to be $624,203 which includes construction and the $100,000 purchase price of the single family home and land. Wille stated that cost varied from the estimate the First National Bank (Mankato) was working off ($662,467) of by $38,264. He indicated the monetary need reduced after the HPC completed their design review and allowed the project to proceed without having to install the EPHS or brick course work on the north and west facades. Wille said the intent is to have First National Bank provide primary financing for the project. The total project cost which would include funds to refinance the existing mortgage ($155,000) is calculated to be $779,703.
Wille stated that an “as-to-be built” appraisal completed by Appraisal Services (Mankato) suggested an appraised market value of $910,000. He said that First National Bank is prepared to approve a first mortgage of 75% of the suggested appraised value or $817,967. Dembouski has requested a revolving loan to finance the remaining $135,467 of project costs. Wille indicated that Dembouski intends to finance the interior equipment, fixtures, inventory, and furnishings out of the operation profits of the liquor store (approximately $151,200). Wille recommended the EDA approve a revolving loan in the amount of $97,203.
Kvamme stated that the amount of the loan should be increased to accommodate the moving or demolition of the home.
Wille stated if the loan is awarded, it would be secured via receipt of a second mortgage. He also added that Ray and Greg Dembouski (owners) would be required to personally guarantee the note along with their spouses.
Wille suggested the note bear and interest rate of 3% and be amortized on a 30 year schedule with the note to be repaid in five years via balloon payment.
A motion was made by Kvamme, seconded by Seitzer to introduce Resolution No. 2008-06 entitled, “A Resolution Recommending Approval Of A $135,500 Revolving Loan To N & D Of St. Peter, LLC To Partially Finance The Expansion Of The Commercial Structure Located at 100 North Minnesota Avenue”. All members voting aye, the Resolution was passed and adopted.
Unfinished Business
M/S & G/S Enterprises – Extension/Subordination Request
Wille reviewed the history of the $250,000 loan to MS & GS Enterprises to partially finance the purchase of the manufacturing facility located at 907 North Swift Street. He stated that the note had been modified numerous times to extend the date of repayment, which at this time is June 18, 2009. He indicated that MS & GS Enterprises have requested that the EDA modify the terms of the $250,000 revolving loan made to them in order to support the financing of a 9,000 square foot addition as well as improvements to the loading docks, parking lots, and interior remodeling to the existing manufacturing facility.
Wille stated that Robinson Appraisal & Associates of Mankato has prepared an “as-proposed” appraisal of the facility and anticipated the value of the real estate between $2,375,000 and $2,568,000 depending upon the appraisal approach. Wille said the most recent appraisal of the existing building, completed in 2006 established a value of $1,300,000. He said that mortgages recorded against the real estate total approximately $950,000 with Klein Bank (Jordan) holding the first mortgage with a loan balance of approximately $720,000.
Wille reported that the price of the 9,000 square foot addition is anticipated to be approximately $999,500 according to a construction proposal submitted by Industrial Construction Services, Inc. of Saint James. He said Voyager Bank (Mankto) is proposed to provide the financing of the addition. It is proposed that after assuming the Klein Bank mortgage, Voyager Bank would provide a mortgage of $1,777,000 against the property which the appraisal suggests would have a value of at least $2,375,000.
Wille said Voyager Bank and MS & GS have requested the City subordinate its mortgage to the new bank mortgage not to exceed $1,777,000 as well as extend the mortgage for a three year period. Wille reminded EDA members that MS & GS has not requested any new dollars, only that the existing debt be modified to support Voyager Bank’s financing of the expansion.
Members expressed their concern with both MS & GS (Exceed Packaging) and Chippewa Packaging showing a loss since the companies existence. Steele said that the two companies are separate but can share costs (employees). He said at this point Exceed Packaging is supporting Chippewa. He mentioned Chippewa is doing quite well and is looking at making a profit this year.
Steele said that local contractors will be given an opportunity to bid on the project but added they will accept the lowest responsible bid.
Wille stated that EDA members were concerned with the salaries that were being paid to the executives and administrative staff of the company. Steele defended their wage and said the staff does their job very well and puts in excessive hours. He also added that the wages are split between the two companies.
A motion was made by Kvamme, seconded by Eichmann to introduce Resolution No. 2008-07 entitled, “A Resolution Modifying The Terms Of A $250,000 Revolving Loan To Mark & Geri Steele”. All member voting aye, the Resolution was passed and adopted
Report
Spec Building Sale- Wille stated that the spec building in the North Industrial Park has been sold.
Adjournment
A motion was made by Southworth, seconded by Eichmann to adjourn the meeting. The meeting adjourned at 1:02 p.m.
CITY OF SAINT PETER, MINNESOTA
OFFICIAL PROCEEDINGS
MINUTES OF THE SPECIAL MEETING
ECONOMIC DEVELOPMENT AUTHORITY MEETING
May 7, 2008
Pursuant and due call and notice thereof, a Special meeting of the Economic Development Authority (EDA) of the City of Saint Peter was conducted in the Governor’s Room at the Saint Peter Community Center on January 25, 2007.
A quorum present President Mike Favre called the meeting to order at 12:00 p.m. The following members were present: Mike Favre, Sam Gault, Jr., Paul Tanis, Jr., Ken Eichmann and John Kvamme. City staff present were Director of Community Development Rosten Wille and Administrative Secretary Cindy Moulton. Guests present were Jay Hanson of Nicollet County Bank and Laura Hulsebus, DC.
Approval of Agenda
A motion was made by Gault, seconded by Southworth, to approve the agenda. With all in favor, the agenda was approved.
New Business
M/S GS Enterprises – Extension/Subordination of Revolving Loan
Wille reported that MS/GS is planning a 9,000 square foot addition to the manufacturing facility located at 907 North Swift Street. Wille stated that Voyager Bank (Mankato) is proposed to provide the financing of the $999,500 construction project .
Wille stated that an appraisal of the property completed in 2006 established a value of $1,300,000. Wille indicated that at this time, mortgages recorded against the real estate totaled approximately $950,000. Klein Bank (Jordan) holds the first mortgage with a loan balance of approximately $720,000.
Wille stated that Robinson Appraisal & Associates of Mankato conducted an “as proposed” appraisal of the 907 North Swift Street property. He said following completion of the improvements, the value of the real estate is anticipated to be between $2,375,000 and $2,568,000.
Wille said that Voyager Bank is proposed to provide the financing of the addition as well as assume the Klein Bank mortgage, which would provide a mortgage of $1,770,000 against the property. which the appraisal suggests would have a value of at least $2,375,000.
Wille stated that Voyager Bank and MS & GS Enterprises have requested that the City subordinate its mortgage to the new bank mortgage not to exceed $1,770,000. He indicated that they have also requested that the City extend the mortgage for a three year period. Wille stated that they are not requesting that the City provide any new dollars, only that the existing debt be modified to support Voyager’s financing of the expansion.
Wille recommended that the EDA approve the request.
Tanis asked how many people are employed full time, if local banks were considered for financing the project, and whether or not local contractors were considered. Wille stated that there is an equivalent of 49.7 full time employees and that the St. James contractor that was awarded the bid would be using the most cost effective subcontractors.
Tanis also said that the last time MS & GS made a request, the EDA was concerned with the amount of money paid out on the higher end salaries.
Tanis suggested, that Mark and Mike Steele be invited to the next EDA meeting to answer any questions the EDA may have.
A motion was made by Tanis, seconded by Favre, to table the request. All members voting aye, the motion carried.
Laura Hulsebus, DC – RLF Application
Wille stated that Laura Hulsebus, DC has submitted a Revolving Loan Fund application in the amount of $45,000 to partially finance the acquisition of the equipment, fixtures, furnishings, patient records and phone numbers of Hartman Chiropractic.
A motion was made by Tanis, seconded by Kvamme to introduce Resolution 2008-05 entitled, “A Resolution Recommending Approval Of A $45,000 Revolving Loan To Laura J. Hulsebus, P.A. To Partially Finance The Acquisition Of The Equipment, Fixtures, Furnishings, Patient Records And Telephone Number Of Hartman Chiropractic of Saint Peter”. Members Eichmann, Southworth, Favre, Kvamme and Tanis voting aye, Member Gault abstaining, the Resolution was passed and adopted.
Unfinished Business - NONE
Report
MGM Liquor – Wille reported that the Heritage Preservation Commission (HPC) approved a design review for a 4,000 square foot addition to MGM Liquor located at 100 North Minnesota. Wille stated that the owners of MGM will be submitting a Revolving Loan application for the next EDA meeting.
Creation Technology – Wille stated that Creation Technology continues to work with RW Construction on a new facility.
Tanis reported that the Development Corporation is working on a project to stimulate employee growth for businesses like Creation Technology and EI Microcircuits. Tanis said the project includes a vo-tech program via internet to local schools which focuses on specific job training. He added that students would be able to earn school credit.
Adjournment
A motion was made by Tanis, seconded by Eichmann to adjourn the meeting. The meeting adjourned at 12:50 p.m.
CITY OF SAINT PETER, MINNESOTA
OFFICIAL PROCEEDINGS
MINUTES OF THE SPECIAL MEETING
ECONOMIC DEVELOPMENT AUTHORITY MEETING
March 27, 2008
The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:00 p.m., Thursday, March 27, 2008. Roll call was taken with President Favre, Sam Gault Jr., Paul Tanis Jr., Greg Seitzer, John Kvamme, Bob Southworth and Ken Eichmann in attendance. No members were absent. Community Development Director Russ Wille, Bryan Sieve (Cinemagic Theaters) and Chad Guentzel (Anytime Fitness) were also in attendance.
Motion by Kvamme to approve the meeting agenda subject to an amendment to address “New Business” before returning to “Old Business”. Seconded by Seitzer, all voting in favor, motion carried.
Motion by Kvamme, seconded by Favre to approve the minutes of the January 24, 2008 meeting of the Economic Development Authority as submitted. With no further discussion, all voting in favor, motion carried.
Motion Picture Theater:
Wille reported that the operator of the Saint Peter Cinema 5 theater has requested that the EDA assist in refinancing the debt of the theater. Midwest Theater Corp. d.b.a. Saint Peter Cinema 5 has owned the Saint Peter theater operations since May, 2006. Since that time, the theater has been marginally profitable.
The 2006 purchase and theater re-opening was accomplished for $645,000. Of the original cost, $125,000 was provided by First Farmer’s & Merchants Bank in the form of a commercial loan secured by the fixtures, furnishings and equipment of the theater. Additional financing was provided by the City of Saint Peter and Nicollet County Bank.
A motion was made by Tanis, seconded by Kvamme to introduce Resolution No. 2008 – 01 entitled, “ A Resolution Recommending A $87,403 Revolving Loan To Midwest Theaters To Finance Fixtures, Furnishings And Equipment And The Extension Of The Existing $40,000 Revolving Loan Previously Awarded” subject to an amendment extending the amortization of the loan to a 15 year period. With no further discussion, the President called for the vote. Tanis, Kvamme, Favre, Southworth, Seitzer and Eichmann voted in favor, Gault abstained, Resolution was passed and adopted.
Anytime Fitness:
Lynn and DeAnn Woods opened the Saint Peter, Anytime Fitness franchise in April, 2006. The business has operated at 319 South Minnesota Avenue since that time.
The Woods hired Chad Guentzel to manage the Saint Peter facility shortly before the Anytime Fitness opened for business. At this time, Guentzel has negotiated the purchase of the franchise from Lynn and DeAnn Woods.
The sale price has been determined to be $150,000. The value of equipment has been determined to be $125,758. The remaining $24,242 would be determined to be the value of the franchise, customer roster and franchise business model.
Wille recommended that the loan be approved at $50,000. It is proposed that the 3% interest note be amortized on a 10 year schedule and that the note be repaid in five years via balloon payment. It is also proposed that the EDA receive a second lien position of fixtures, furnishing and equipment of Anytime Fitness as collateral.
A motion was made by Favre, seconded by Eichmann to introduce Resolution No. 2008 – 02 entitled, “ A Resolution Recommending Approval Of A $50,000 Revolving Loan To Chad Guentzel To Partially Finance The Anytime Fitness Franchise In Saint Peter” subject to an amendment requiring that Guentzel obtain a life insurance policy in an amount equal to the unpaid loan balance and that the City of Saint Peter be noted as a beneficiary of such policy. With no further discussion, the President called for the vote. Favre, Southworth, Seitzer, Kvamme and Eichmann voted in favor, Gault and Tanis abstained, the Resolution was passed and adopted.
Southern Minnesota Initiative Foundation:
The Southern Minnesota Initiative Foundation has requested a contribution of $1,000 from the City of Saint Peter to support their economic and community development activities in the 20 county Region. Wille and City Administrator Todd Prafke recommended approval of the contribution as requested. A motion was made by Gault, seconded by Eichmann to introduce Resolution No. 2008- 03 entitled, “A Resolution Recommending That The City Of Saint Peter Provide A $1,000 Contribution To The General Endowment Of The Southern Minnesota Initiative Foundation”. With no further discussion, all voting in favor, the Resolution was passed and adopted.
Small Business Development Center:
The Small Business Development Center has requested a contribution from the City of Saint Peter to support their business planning activities in the nine county Region. Noting that the SBDC provided over 145 hours of free business planning services in Saint Peter during calendar year 2007, Wille recommended that the City provided the requested contribution. A motion was made by Southworth, seconded by Seitzer to introduce Resolution No. 2008 -04 entitled, “ A Resolution Recommending A Contribution Of $2,000 To Support The Continued Operations Of The Small Business Development Center”. With no further discussion, all voting in favor, the Resolution was passed and adopted.
Daycare Funding Guidelines
Wille presented preliminary guidelines for developing a loan program designed to support financing the start-up or expansion of day cares in Saint Peter. There were many questions regarding the proposed policies. It was decided that Southworth, Favre and Wille are to meet to “fine tune” the proposal’s requirements for documentation and collateralization of any loans.
Reports
RW Carlstrom continues to work with a local industry regarding the construction and lease of a manufacturing facility. RW Carlstrom is currently developing a construction budget which would be used to determine the applicable lease rate.
MS & GS Enterprises is working to finance a 9,000 square foot addition to their Swift Street facility. They are seeking financing from a number of sources. It appears that the EDA may be asked to extend the MS & GS note for three year period.
Lakeport Development is seeking an option on the “old library lot” which is across the street from City Hall. They are also seeking an option on the lots north of the Marshall Street cul-de-sac.
The Food Coop may ask that the EDA take a more active role in developing Municipal Parking Lot #5. The Community Development Director will be meeting with representatives of the Food Coop and City Administration to discuss such a scenario and its impact on other developments.
Kentucky Fried Chicken is completing their engineering of a site on Old Minnesota Avenue. The completion of Dranttel Street is expected to be required as part of this development. The Community Development Director will work with neighboring property owners to coordinate the construction and financing (assessments) of the project.
Saintpeteradvantage.com has been redesigned. Members were encouraged to check out the new and improved website.
Adjournment
With not further business to conduct, motion by Favre to adjourn. Seconded by Gault, all voting in favor, meeting adjourned.
CITY OF SAINT PETER, MINNESOTA
OFFICIAL PROCEEDINGS
MINUTES OF THE REGULAR MEETING
ECONOMIC DEVELOPMENT AUTHORITY MEETING
January 24, 2008
Pursuant and due call and notice thereof, a regular meeting of the Economic Development Authority (EDA) of the City of Saint Peter was conducted in the Governor’s Room at the Saint Peter Community Center on January 24, 2008.
A quorum present President Mike Favre called the meeting to order at 12:02 p.m. The following members were present: Sam Gault, Jr., Paul Tanis, Jr., Mike Favre, Greg Seitzer, Ken Eichmann, Bob Southworth and John Kvamme. City staff present were Director of Community Development Rosten Wille and Administrative Secretary Cindy Moulton.
Approval of Agenda
A motion was made by Tanis, seconded by Eichmann, to approve the agenda. With all in favor, the agenda was approved.
Oath of Office
Community Development Director Wille administered the oath of office to new member Bob Southworth.
Election of Officers
A motion was made by Kvamme, seconded by Seitzer to nominate Favre for president. A motion was made by Favre to nominate Bob Southworth for president. The motion died with the lack of a second. A motion was made by Kvamme, seconded by Seitzer to move nominations cease. All members voting in favor of Favre as president, the motion carried.
A motion was made by Tanis, seconded by Kvamme to nominate Southworth as vice-president. All members voting aye, the motion carried.
Approval of Minutes
A motion was made by Kvamme, seconded by Tanis to approve the minutes of November 27, 2007 with the following amendments; change “alien” to a lien under Saint Peter Childcare Center, Inc. – Revolving Loan Request and delete the word “strongly” under Child Care Loan Program Discussion. All members voting aye, the minutes were approved as amended.
Gault wanted it noted that the Saint Peter Childcare loan was approved at the November 29, 2007 meeting because of the following special circumstance; the EDA did not require primary financing from a commercial lender because of the documented and significant need for daycare.
Unfinished Business
Super Wash & Lube (paid in full)
Wille announced that Super Wash & Lube has paid their revolving loan in full. He also indicated that they have paid off their delinquent utility bill. He thanked City Attorney Jim Brandt and Finance Director Paula O’Connell for pursuing the Super Six Wash & Lube Limited Liability Corporation.
Tanis requested that a data base be created reflecting borrowers that are continually delinquent on their revolving loan payments and those that have defaulted on their revolving loans. He asked that the data be distributed at the next EDA meeting.
Richard’s Pub
Wille reported that David Olson is making progress with Richards Pub. He hopes to open the restaurant by the end of February.
New Business - NONE
Reports
Creation Technologies
Wille reported that Creation Technologies is working with R.W. Carlstrom Construction on the construction of a 50,000 square foot building. Wille stated that Carlstrom’s are intending to form an undetermined ownership group that would own the building and lease it to Creation Technologies. Wille said that it appears a sale is being negotiated on the existing Creation Technologies building.
Chippewa Packaging
Wille indicated that Chippewa Packaging is in need of additional space. Chippewa is exploring two options; constructing a new facility in the North Industrial Park and expanding their current facility.
North Industrial Park Cul-de-sac
Wille stated that a construction management company has expressed an interest in purchasing one of the remaining six lots and obtaining a twelve month option on the remaining five lots in the cul-de-sac located on Marshall Street. They have proposed that if a building permit is obtained for the first lot within one year, they be allowed to extend the option on the five lots for an additional twelve months and repeat the process for up to three years.
Housing Study/3rd Subdivision
Wille said that the City of Saint Peter has received a proposal from Community Partners Research, Inc. to conduct a market analysis on the feasibility of developing a third affordable subdivision similar to Nicollet Meadows and Washington Terrace.
Wille stated that there has been a drop off in building permits and wondered if there is an immediate need for this type of subdivision. Wille suggested, and EDA members agreed, to wait 9 months to one year at which time the issue could be revisited.
Saint Peter Food Coop
Wille stated that City Administrator Todd Prafke is negotiating an option agreement with the Saint Peter Food Coop for parking lot #5. He said the Food Coop is working with R.W. Carlstrom Construction on plans for a two-story, 10,000 square foot building that would be constructed on the lot. He indicated that the Food Coop plans to occupy the 10,000 square foot lower level of the building and possibly condominiumize the upper level and lease it out.
Tanis said although his employees currently use parking lot #5, he supports development of the lot. He suggested that diagonal parking be placed along the east side of Family Dollar to allow for public parking. Wille encouraged Tanis to speak with City Administrator Todd Prafke about the diagonal parking idea. Wille said that the City is exploring the possibility of placing parking on the east side of Minnesota Avenue.
ISJ Mayor Health Systems
Wille reported that ISJ Mayo Health Systems has signed a letter of intent to construct a clinic adjoined to the Saint Peter Community Hospital in the North Industrial Park. Wille stated that the ISJ Mayo Health Systems property located on the northwest corner of Broadway Avenue and Sunrise Drive was annexed into the city and zoned C-5 with the intention that a new clinic would be constructed at that location. Wille stated that it is likely ISJ Mayo Health Systems would market that property.
Kentucky Fried Chicken
Wille stated that the owner of Kentucky Fried Chicken (KFC) has purchased the property located at 1601 Old Minnesota Avenue. Wille indicated that the owner is interested in subdividing the property in order to construct a new building to relocate KFC from the current location.
Contents/China Town
Wille said Comfort Systems has not started to install the vent on the outside of China Town due to the weather. He indicated that once the work is completed at China Town, Carol Hayes will finish the interior work at 304 South Minnesota and proceed to relocate Contents from 316 South Minnesota.
Library Lot – Nassau and South Front Street
Wille stated that a construction company has expressed an interest in constructing an office building at 101 West Nassau.
Daycare Guidelines
Tanis asked Wille to furnish guidelines for daycare funding at the February EDA meeting.
The Pulse
Tanis reported that The Pulse is up and running. He indicated that Charles and Rachel More expressed their gratitude towards the EDA/City for their participation in the funding of the project.
Adjournment
A motion was made by Gault, seconded by Seitzer to adjourn the meeting. The meeting adjourned at 1:06 p.m.
Saint Peter, MN 56082
Phone: (507) 934-0661
Fax: (507) 934-4917
E mail: cindym@saintpetermn.gov