CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

SPECIAL MEETING MINUTES – October 29, 2009

Saint Peter Community Center – Governors Room

 

 

The special meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:04 p.m.  Roll call was taken with President Favre, John Kvamme, Bob Southworth and Ken Eichmann in attendance.  Member Jay Hansen was absent and there are two Board vacancies..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance.

 

Approval of Agenda:

 

A motion was made by Kvamme, seconded by Eichman to approve the meeting agenda.  All voting in favor, the motion carried.

 

Autotronics Revolving Loan Application

 

Wille stated that Arvin VanderPlas purchased the Autotronics operational assets and business name.  He said that VanderPlas has negotiated the purchase of the vacant lot adjacent from the Tire One Operations in order to construct a new auto repair shop. Wille said the total cost of land acquisition and building construction has been estimated to be $442,548. 

 

Wille stated that VanderPlas has submitted a revolving loan request in the amount of $52,000 to partially finance the construction of the new Autotronics facility.  He stated that First National Bank has approved a $200,000 conventional loan, an application is pending for a $160,000 SBA 504 backed loan, and VanderPlas has pledged to contribute $30,548 cash.

  

Southworth asked if VanderPlas’s financials and credit history had been reviewed.  Wille indicated that he had reviewed the financials but had not run a credit history.

 

A motion was made by Southworth, seconded by Eichmann to introduce Resolution No. 2009 – 16 entitled, “A Resolution Recommending Approval Of A $52,000 Revolving Loan To Autotronics, Inc. To Partially Finance The Construction of A New Commercial Structure Located at 111 Jefferson Avenue”.  With no further discussion, Members Eichmann, Southworth and Kvamme, voting aye, Member Favre abstaining, the Resolution was passed and adopted.

 

Reports:

 

Creation Technology – The construction of the new Creation Technology is progressing.

 

Discover 169 Celebration – The celebration will be held on Saturday, November 14, 2009.

 

Richards Pub - City Attorney Jim Brandt will attend the next EDA meeting to discuss the delinquency of Richard’s Pub revolving loan payments.

 

Kvamme asked if Mary’s Flowers would be addressing the appearance of the front yard of the business.  Wille assured the EDA that the area will be maintained at a higher standard and that the wind-catchers would not be allowed back in the right-of-way.

 

Adjournment

 

With not further business to conduct, a motion was made by Southworth, seconded by Eichmann to adjourn.  All voting in favor, the meeting adjourned at 12:25 p.m.

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – October 21, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:09 p.m.  Roll call was taken with President Favre, John Kvamme, Jay Hansen, and Bob Southworth in attendance.  Member Ken Eichmann was absent and there are two Board vacancies..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance.  Visitor present was Preston Smith of Mary’s Flowers.

 

Approval of Agenda:

 

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

 

Approval of Minutes

 

A motion was made by Kvamme, seconded by Favre to approve the minutes of the August 27, 2009 meeting.  All members voting aye, the minutes were approved as presented. 

 

A motion was made by Kvamme, seconded by Hansen to approve the minutes of the September 2, 2009 meeting.  All members voting aye, the minutes were approved as presented.

 

Mary’s Flowers - Revolving Loan Application

 

Mary Smith dba Mary’s Flowers, has submitted a revolving loan application in the amount of $37,000 to partially finance the remodeling of a commercial structure located at 1123 South Minnesota Avenue.  Wille stated that besides remodeling, a number of working capital needs such as inventory, continuing education and advertising was also requested in the application.  Wille said the proposed total financing consists of a $6,000 City Construction Mitigation Micro-Loan, $37,000 Revolving Loan, $75,000 Conventional Loan and $18,000 cash from the owner. 

 

Members discussed the terms of the loan.  It was recommended that the loan be secured by a recorded lien against the fixtures, furnishings, equipment, inventory and accounts receivable of Mary’s Flowers. 

 

A motion was made by Southworth, seconded by Favre to introduce Resolution No. 2009 – 13 entitled, “A Resolution Recommending Approval Of A $37,000 Revolving Loan To Mary Smith (DBA Mary’s Flowers) To Partially Finance The Expansion Of The Commercial Structure Located at 1123 South Minnesota Avenue” with the addition of the recorded lien against the fixtures, furnishings, equipment, inventory and accounts receivable of Mary’s Flowers.  With no further discussion, Members Kvamme, Favre and Southworth voting aye, Member Hansen abstaining, the Resolution was passed and adopted.

 

Traverse des Sioux Garden Center – Balloon Extension

 

Fred Struck dba Traverse des Sioux Garden Center has submitted a written request asking for an extension of his revolving loan balloon payment due on October 1, 2009. Wille stated that due to the economy and a street construction assessment, Struck has indicated that he would not be able to make the balloon payment as scheduled.  Wille stated that Struck has asked for a 24 month extension.

 

Hansen stated that if the interest rate was below 3% he would recommend increasing it.  He also stated as a general rule revolving loans should be moved to 5 year balloons.

    

A motion was made by Favre, seconded by Kvamme to introduce Resolution No. 2009 – 14 entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided To Lydell & Joy Struck D.B.A. Traverse Des Sioux Garden Center”.  With no further discussion, all members voting aye, the Resolution was passed and adopted.

 

Volk Electric – Balloon Extension

 

Brian Grey dba Volk Electric, has submitted a request asking the EDA to extend the balloon payment on his existing revolving loans for 24 months.  Wille indicated that the balloon payment would create a financial hardship for Volk Electric.  He stated that Volk Electric has been negatively impacted by the economy.  He also added that Grey has expanded his operations through the start-up of Volk Plumbing & Heating and needs to direct available cash to his expansion. 

  

A motion was made by Hansen, seconded by Southworth to introduce Resolution No. 2009 – 15 entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided To Volk Electric”.  With no further discussion, members Southworth, Kvamme, and Hansen voting aye, member Favre abstaining, the Resolution was passed and adopted.

 

Reports:

 

Construction Mitigation Micro Loan  -  Wille stated the City Council approved the Construction Mitigation Micro Loan program for those businesses that have Highway 169 frontage from Jefferson Avenue to Union Street.  Businesses from Jefferson Avenue to Broadway will be eligible for $6,000 and businesses north of Broadway to Union Street are eligible for $3,000.  Several businesses have expressed an interest. 

 

Discover 169  Wille announced the last Discover 169 drawing will be held on Friday, November 27^th.  He stated that the Discover 169 Celebration will be held on Saturday November 14^th with the ribbon cutting taking place at 11 a.m. and activities planned for all ages throughout the day.

 

Autotronics Wille reported that Arvin VanderPlas, owner of Autotronics, plans on submitting a Revolving Loan application in the amount of $52,000 to partially finance the construction of a new building.  Wille stated that Phase 2 soil borings need to be completed on the vacant lot prior to construction.

 

Richard’s Pub  Wille reported that the City has not received; Revolving Loan payments from Richard’s Pub for September or October, utility payments or lodging tax.  Members requested that City Attorney Brandt be invited to attend the next EDA meeting to review the options for collecting the loan.   

 

Greater Mankato Growth  The City Council voted in favor of becoming a member of Greater Mankato Growth.  The City Council is expected to appoint Kvamme and Wille to the Advisory Board of Greater Mankato Growth.

 

Lidstrom Commerical Realtors  - Wille stated that the City Council approved an exclusive listing with Lidstrom’s to market the current Creation Technology building.  Wille said a showing is scheduled for Monday.

 

Hunter Hardwood  - Wille reported that Hunter Hardwood will be submitting a Revolving Loan request in the near future.

 

I & S Engineering – Wille said that the City has received the renderings from I & S Engineering for the Saint Peter Ford building.  Fisher Group Commercial Realty is authorized to share the renderings with their clients.

 

Adjournment

 

With no further business to conduct, a motion was made by Favre, seconded by Southworth to adjourn.  All voting in favor, the meeting adjourned at 12:52 p.m.

 

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

SPECIAL MEETING MINUTES – September 2, 2009

Saint Peter Community Center – Governors Room

 

 

The special meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:03 p.m.  Roll call was taken with President Favre, Bob Southworth, John Kvamme, and Ken Eichmann in attendance, Jay Hansen was absent. There are currently two vacancies on the EDA.  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitor present was Paul Tanis.

 

Approval of Agenda:

 

A motion was made by Kvamme, seconded by Southworth to approve the meeting agenda with the addition under Reports G) Hendrickson Organ H) Weber – Country Kitchen I) EDI Meeting J) Senior Housing.  All voting in favor, the agenda was approved as amended.

 

Sweat Equity Revolving Loan Request

 

Wille stated that Paul Tanis of Sweat Equity, LLC has submitted a Revolving Loan Fund application to help fund the construction of a commercial building at 303 South Minnesota.    Wille indicated that the project cost totals $175,300 and Sweat Equity, LLC is requesting $25,000 from the Façade Renovation Fund and $50,000 from the Revolving Loan Fund. 

 

Wille stated that project does not meet the Façade Renovation criteria but that Sweat Equity LLC is more than willing to construct a building that blends in and is in sympathy with the character and architecture of Saint Peter’s historic downtown.  Wille suggested that the two applications be combined and that the proposed interest rate be “blended” to reflect that a portion of the project costs are eligible for the 0% façade enhancement funding. 

 

Wille reminded Members that construction within the Central Business District is subject to the review and approval of the Heritage Preservation Commission.  He stated that the HPC has not had the opportunity to review the proposed construction. Wille recommended that the proposed EDA action be contingent upon the HPC’s approval of the building design and materials. 

 

A motion was made by Favre, seconded by Southworth to introduce Resolution No. 2009 – 12 entitled, “A Resolution Recommending Approval Of A $75,000 Revolving Loan To Sweat Equity, LLC To Partially Finance The Construction Of A New Building At 303 South Minnesota Avenue”.  All members voting aye, the Resolution was passed and adopted.

 

Reports

 

KWIK Trip - The KWIK Trip site is cleared.  The City is expected to hire Bolton & Menk to prepare the final specs and design of the Jefferson Avenue improvement.  Wille is expecting KWIK Trip to submit a building permit in the spring.

 

KFC – Wille reported that David Kerr has not yet submitted a zoning application to split his lot located at  1601 Old Minnesota Avenue.

 

Discover 169 -  Mary Topp was the second winner of the $500 Discover 169 drawing.  There were 584 tickets included in the drawing.  The next drawing will take place on September 25, 2009.

 

Autotronics – The Planning and Zoning Commission approved the Waiver of Subdivision for Lots 1 – 6, Block 193 Amended Plat, submitted by Robert “Shorty” Johnson.  Wille stated that Autotronics will be constructing a new building on Parcel  A . 

 

Hunter Hardwood  - Greg Schettler of Hunter Hardwood is exploring a variety of options for expanding his business (expand existing business or look at an alternative site).

 

Ford/Four Seasons – A rendering from I & S Engineering will be available at the Regular September EDA meeting.

 

Hendrickson Organ – The Hendrickson Organ’s request will not be presented to the City Council for consideration due to the failure of action taken by the EDA.

 

Weber’s/Country Kitchen  - Wille reported that he received a letter from Attorney Paul Tanis, representing Weber’s Family Restaurant, requesting that the EDA defer their recommendation to the City Council at this time.

 

EDI – Wille announced EDI will be held on Wednesday, September 9, 2009 at noon in the Governors Room at the Community Center.

 

Senior Housing -   Wille reported that Bernhagen has extended their option, on behalf of Ecumen, for lots in the North Industrial Park for the development of senior housing.  He also said that Benedictine Health System has plans for exercising an option for senior housing which would be connected to the hospital.

 

Favre expressed his concern with Charles Hendrickson being unaware of the terms and conditions associated with a Revolving Loan.  Favre requested that applicants be given the guidelines prior to application submittal.

 

Adjournment

 

With no further business to conduct, a motion was made by Southworth, seconded by Eichmann to adjourn.  All voting in favor, the meeting adjourned at 12:37 p.m.

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – August 27, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:00 p.m.  Roll call was taken with President Favre, Bob Southworth, Jay Hansen and Ken Eichmann in attendance, John Kvamme was absent.  .There are currently two vacancies on the EDA.  Community Development Director Russ Wille, Administrative Secretary Cindy Moulton, and City Attorney Jim Brandt were also in attendance. Visitors present were Charles Hendrickson, Andres Hendrickson, and Paul Tanis.

 

Approval of Agenda:

 

A motion was made by Eichmann, seconded by Hansen to approve the meeting agenda with the addition of D. Minnesota Community Capitol Membership and E. Sweat Equity Revolving Loan Request.  All voting in favor, the agenda was approved as amended.

 

Approval of Minutes:

 

A motion was made by Eichmann, seconded by Southworth to approve the minutes of April 23, 2009, July 15, 2009 and July 23, 2009 meetings.  With no further discussion, all voting in favor, the motion carried and the minutes were approved as presented.

 

Hendrickson Organ Co. (Reconsider Loan Terms)

 

Wille stated that the City Council approved the $100,000 Revolving Loan request (line of Credit) for Hendrickson Organ to finance the procurement of inventory required to honor existing contracts.  Wille indicated that the terms of the loan required that a personal guarantee be executed by Mr. Hendrickson and his spouse. 

 

Wille stated that Mr. Hendrickson has requested that the EDA and City Council reconsider the terms of the loan to remove his spouse from the personal guarantee.  Wille stated that the EDA has required the signature of the spouse on every personal guarantee with the exception of one since 2002. 

 

City Attorney Brandt stated that since the EDA loans public monies and their loans fall in a high risk area, the EDA has historically been careful to secure their loans to the greatest extent possible.  Brandt said that if the EDA grants an exception for Mr. Hendrickson, other loan recipients may rightfully come forward and demand the same consideration that was given to the Hendrickson’s.  Brandt said in those applications a joint and several personal guarantees may be absolutely critical.  Brandt expressed that it is critical that the EDA look at its past practices and the risks to public money.    

 

Charles Hendrickson addressed the EDA.  He indicated that he has declined the loan as offered by the EDA and City Council because he was unaware that his wife also needed to sign the Personal Guarantee.  He indicated that his wife has never had to sign a Personal Guarantee with any bank loan that he has obtained.  He said that the EDA is asking Mrs. Hendrickson to waive her State Statute right if they require her to sign a Personal Guarantee.  He requested the EDA remove her from the Personal Guarantee.

 

EDA members discussed a variety of scenarios that precluded a spouse signature.  They said that it would be more difficult to collect on a loan if assets were moved to the non-signing spouse to protect themselves.  Members felt that the EDA needed to secure loan as much as possible.

 

The EDA took no action on Hendrickson request.

 

Weber Family Restaurants (RLF Application)

 

Wille reviewed the Weber Family Restaurant, Inc. (WFR) revolving loan fund request.  He stated that at the last EDA meeting the request was tabled and staff was directed to contact Region 9 Development Commission and the Southern Minnesota Initiative Fund (SMIF) and inquire as to the availability and applicability of their revolving loan fund programs.  Wille was also directed to contact First National Bank as to possible remedies or options available to restructure or reposition the debt of WFR.

 

Wille stated that neither Region 9 nor SMIF believed they could provide assistance.  He indicated that SMIF does not provide assistance to establishments serving or selling liquor, nor do they refinance existing business debt.  He also said that Region 9 loan funds cannot be used to refinance existing debt.  Wille also acknowledged that First National Bank is unable to provide relief or concessions to WRF regarding the Debt.  He stated that a judgment has yet to be pursued by First National Bank and the bank’s actions going forward will be largely dictated by the Small Business Administration which had guaranteed the loan.  Wille recommended denial of the request. 

 

Tanis stated that Weber’s would be pursuing other remedies and would be working out the Franchise Agreement with Country Kitchen International.

 

A motion was made by Eichmann, seconded by Southworth to introduce Resolution No. 2009-10 entitled, “A Resolution Recommending Denial Of A Revolving Loan To Weber Family Restaurants, Inc.”. Members Eichmann and Southworth voting aye, Members Hansen and Favre abstaining, the Resolution was passed and adopted.

 

Kevin Bores (Balloon Extension Request)

 

Wille stated that Kevin Bores, owner of 105 South Minnesota, has submitted a request for a twenty-four month extension of his revolving loan balloon payment which is to be repaid on October 1, 2009.  Wille stated that Bores owned the Dominos Franchise at the time of the loan and has subsequently sold the franchise but has retained ownership of the property that is leased to Dominos.

 

Wille indicated that Bores would continue to provide monthly payments and all of the terms of the note would remain.  He stated the loan would continue to be collateralized in the original manner. 
Wille recommended the balloon payment be extended to October 1, 2011. 

 

A motion was made by Favre, seconded by Eichmann to introduce Resolution No. 2009 -11 entitled, “A Resolution Recommending Modification of Loan Terms For A Revolving Loan Previously Provided To Kevin & Patricia Bores”.  Members Southworth, Favre and Eichmann voting aye, Member Hansen abstaining.  The Resolution was passed and adopted.

 

Regional Economic Development Partnership

 

Wille stated that Jonathan Zierdt, President/CEO of Greater Mankato Growth (GMG), met with the City Council and spoke to them about entering into an Economic Development Partnership with Greater Mankato Growth and other area cities, to cooperatively market and promote this area.  Wille said the presentation was well received by the City Council.

 

Wille said that GMG would principally be responsible for coordinating the marketing and recruitment of potential businesses to the area.  Once a prospect is obtained, the individual communities would have the opportunity to develop an incentive package or project financing and to make a “pitch” to the business. Wille indicated that the fee to join GMG would be assessed based upon population.  St. Peter’s cost would be $14,650 for the first sixteen months of service; in 2011 the fee would increase to $17,444 and 2012 to $25,150.

 

Hansen expressed his displeasure with the name as he didn’t think it fit with Saint Peter.  Southworth agreed.

 

Eichmann didn’t think that Saint Peter would gain the exposure if it were not part of a well known Regional area.  He felt the name could enhance St. Peter’s exposure.

 

Members questioned why North Mankato was no longer a member of GMG.  Wille stated North Mankato  didn’t feel they were receiving any benefit from GMG’s services.   Southworth suggested that GMG and North Mankato make amends before Saint Peter joins GMG.

 

Wille suggested that Jonathan Zierdt be invited to an EDA meeting to explain the purpose of GMG and to answer any questions.

 

Realtor Proposals (Creation Technologies Property)

 

Wille stated that he has received two realtor proposals to market the Creation Technologies Property.  He asked for two EDA members to review the proposals (from Fisher Development and Lidstrom Commercial Realtors) and bring back a recommendation to the EDA.  Favre appointed Hansen and Southworth.

 

MN Community Capital Fund Membership (MCCF)

 

Wille stated that the EDA joined the MCCF in 2003 at a cost of $25,000.  He stated that the purpose of the fund is to develop, fund and operate a flexible self-sustaining development loan fund.  Wille said that EDA has not benefited from the organization and said that the EDA has access to the MCCF through Region 9 Development.  He recommended that the EDA withdraw their membership.  He indicated that the EDA’s $25,000 fee would be refunded without interest.  A motion was made by Favre, seconded by Eichmann to withdraw from the MCCF.  All members voting aye, the motion carried.

 

Sweat Equity Revolving Loan Request

 

Wille stated that Paul Tanis of Sweat Equity, LLC has submitted a Revolving Loan Fund application to help fund the construction of a building at 303 South Minnesota.  Wille distributed the background information to the EDA. 

 

Tanis stated that Sweat Equity intends to construct a two-story commercial space to “fill the gap” between River Rock Coffee and Re-Max.  The building will consist of retail or office space in the lower level and a loft-style efficiency apartment in the upper level.  He said it is their hope the building will blend in and be in sympathy with the character and architecture of Saint Peter’s historic downtown.

 

Wille said that a Special Meeting will be held on Wednesday, September 2, 2009 to consider the request.

 

Reports

 

The Reports were deferred until the Special EDA Meeting which will be held on Wednesday, September 2, 2009.

 

Adjournment

 

With no further business to conduct, a motion was made by Hansen, seconded by Eichmann to adjourn.  All voting in favor, the meeting adjourned at 1:09 p.m.

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – July 23, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:03 p.m.  Roll call was taken with President Favre, John Kvamme, Jay Hansen. and Ken Eichmann in attendance.  Member Bob Southworth was absent and there are two Board vacancies..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance.  Visitors present included Connie and Frank Weber, Paul Tanis, Charles and Andreas Hendrickson.

 

Approval of Agenda:

 

Wille removed “Approval of Minutes” from the agenda.  Motion by Kvamme, seconded by Hansen to approve the meeting agenda as amended   All voting in favor, motion carried.

 

NEW BUSINESS

 

Hendrickson Organ – Revolving Loan Request

 

Wille stated that Hendrickson Organ Company (HOC) has submitted a Revolving Loan Application request in the amount of $100,000 to help finance the acquisition of inventory necessary to honor and support existing contracts.  Wille said that due to the cyclical nature of the business and the considerable time required to complete the service, repair or installation, HOC is in need for working capital to finance the acquisition of materials and organ components. 

 

Wille stated that the company anticipates additional work and has recently added temporary and part-time staff to their operations.  There are currently 12 employees at HOC and an annual payroll of approximately $291,500.

 

Wille indicated that a thorough review of HOC’s financial data has proven to be challenging.  He stated that a net loss has been apparent since 2007.

 

Wille recommended approval of the $100,000 request subject to the following conditions; 1) the loan be established as a line of credit restricted to the purchase of inventory  2) the funds be accessed based upon billings submitted by various suppliers 3) the loan be collateralized through the filing of a security instrument and an assignment of existing and future receivables 4)  First National  Bank’s release of the first position collateralization of inventory and accounts receivable to the EDA (the collateralization of fixtures, furnishings and equipment may remain behind First National Bank’s security position) 5) the loan be further secured through the filing of a mortgage which may be subordinated to the two existing mortgages held by First National Bank in an aggregate amount not to exceed $85,000 6)  the loan be secured by a personal guarantee executed by Charles Hendrickson and Birgitta Hendrickson (wife & husband) 7) the loan be repaid through the assignment of existing and future accounts receivable (upon receipt of client payments, HOC shall remit 25% of such payment to the EDA 8) if not repaid in full through the assigned accounts receivable, the note shall be due in full on August 1, 2014 and   9) First National Bank releases the mortgage recorded March 27, 187 in the principal amount of $171,000 and the release of a mortgage recorded September 1, 1990 in the original principal amount of $16,750.

 

It was requested that HOC’s accountant provide monthly statements to the EDA.  It was also requested that the accountant receive all payments from HOC’s customers and at such time the accountant would remit the appropriate payment to the City. 

 

A motion was made by Kvamme, seconded by Eichmann to introduce Resolution No. 2009-09 entitled, “A Resolution Recommending Approval Of A $100,000 Revolving Loan To Hendrickson Organ Company, Inc. To Finance The Acquisition Of Inventory Necessary To Support Existing Contracts”.  All members voting aye, the resolution was passed and adopted.

 

Weber’s Family Restaurant – Revolving Loan Request

 

Wille stated that Weber Family Restaurants (WFR) has submitted an application for a Façade Enhancement Revolving Loan in the amount of $8,500 to complete the construction of an outdoor deck/patio area and a Revolving Loan in the amount of $125,459 to finance the remodeling of the facility, to refinance existing debt and to pay delinquent franchise fees to Country Kitchen International. 

 

Wille indicated that the Façade Enhancement Revolving Loan is not available to businesses operating outside of the Heritage Preservation District.  Wille stated that he has consolidated the requests and has considered them as one Revolving Loan application.

 

Wille stated that the EDA has not been in the practice of loaning funds to refinance existing debt without the participation of existing lenders.  He also stated that the applicant is anticipating Country Kitchen International (CKI) to agree to accept $20,000 to settle the delinquent franchise fees while no correspondence is provided by KCI indicating they would agree to such settlement. 

 

Wille said the refinancing of the First National Bank and CKI debt totals $107,514 of the $192,459 requested.  Wille indicated the eligible project expenses are limited to the building remodeling and purchase of new equipment/furnishings totaling $84,945.

 

Attorney Paul Tanis spoke on behalf of Frank and Connie Weber.  He explained that the Weber’s want to end the franchise agreement with CKI.  He said they want to restructure and rename the restaurant but that is difficult with debt hanging over them.  Tanis suggested that based upon longevity and credibility, Weber’s deserve consideration. 

 

A motion was made by Eichmann, seconded by Kvamme to table the request and to direct the Community Development Director to inquire as to the availability and applicability of the Region Nine Development Commission and the Southern Minnesota Initiative Fund revolving loan fund programs.  The Director was also directed to initiate communication with First National Bank as to possible remedies or options available to restructure or reposition the debt of Weber Family Restaurants.  With no further discussion, Members Eichmann and Kvamme voting aye, Members Favre and Hansen noted that they would abstain from the discussion and vote due to the involvement of their employer as a previous review and denial of a WFR loan application, the motion carried.

 

Adjournment

 

With no further business to conduct, a motion was made by Hansen, seconded by Favre to adjourn.  All voting in favor, the meeting adjourned at 1:07 p.m.

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

SPECIAL MEETING MINUTES – July 15, 2009

Saint Peter Community Center – Governors Room

 

 

The special meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:07 p.m.  Roll call was taken with President Favre, John Kvamme, Jay Hansen. and Ken Eichmann in attendance.  Member Bob Southworth was absent and there are two Board vacancies..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance.

 

Approval of Agenda:

 

Wille removed “Approval of Minutes” from the agenda.  Motion by Kvamme, seconded by Favre to approve the meeting agenda as amended   All voting in favor, motion carried.

 

NEW BUSINESS

 

Dr. Dirks (St. Peter Eyecare Center) – Balloon Extension

 

Wille stated that Blake Dirks has submitted a request to extend his revolving loan balloon payment which was due on July 1, 2009.  Dirks indicated in his letter to Wille that the account he had set up to pay the balloon payment was badly jeopardized due to the countries financial condition.  He has requested that the loan remain at the current interest rate for as long as possible. 

 

Wille stated that Dirks has been current on all of his revolving loan payments and recommended a two year extension at the current interest rate.

 

A motion was made by Favre, seconded by Hansen to introduce Resolution No. 2009-07 entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided to Blake & Jo Ellen Dirks DBA Saint Peter Eyecare Center”.  All members voting aye, the resolution was passed and adopted.

 

Fisher Group – Joint Marketing Proposal

 

Wille stated that he, on behalf of the EDA, has been approached by the Fisher Group to enter into a joint marketing program to actively promote the sale and development of the former Saint Peter Ford and Four Seasons Interior sites through the creation of artistic renderings depicting the post development opportunities.

 

Wille explained that the Fisher Group has been retained by both the owners of the former Saint Peter Ford and 4 Seasons Interiors properties.  Both are currently vacant and otherwise unoccupied.  Because the size and location of the sites make this a unique opportunity for the redevelopment of the north end of the hwy 169 corridor, Fisher Group has asked the EDA to finance the creation of artist renderings depicting possible post redevelopment scenarios of the site.  Wille said that I & S Engineers has quoted a price of $2,750 for the creation of two site concepts and potential tenant layouts.

 

Wille recommended that the agreement be approved subject to the following terms; renderings would be the property of the Saint Peter Economic Development Authority, The Fisher Group would have the exclusive rights to the use of the renderings during the terms of their listing agreements with the property owners, the Fisher Group shall reimburse the EDA for the costs of the renderings at such time as the buildings are sold, and if the properties have not sold at the time that Fisher Group’s listing expires, the EDA would have the ability to provide use of the renderings to any alternative realtor that would obtain the listing.

 

Hansen expressed his concern that the EDA would be setting a precedence.  He said the property owner and realtors would be the benefactors with this type of agreement.

 

Kvamme asked if the EDA would be reimbursed for the cost of the renderings.  Wille indicated that if the property sells, Fisher Group would repay the City.  If the listing expires with Fisher, the City would obtain the rights to the renderings.

 

Favre said he can’t see the need for Fisher to obtain EDA funds as they should have funds available for marketing.  He felt they should take a risk.

 

Hansen said the EDA should have a procedure in place to offer this benefit to other realtors.

 

Wille said he wasn’t worried about setting a precedent as our local realtors do not specialize in industrial/commercial sales.

 

Hansen asked if the EDA would consider everyone’s request.  Hansen remarked that he would vote yes if the EDA opened the door to everyone, taking the amount requested into account.

 

Favre disagreed in principle, as Fisher Group doesn’t need the money, but that he would like to see the site developed.

 

Wille was directed to bring any such requests he receives to the EDA to be considered on a case by case basis, relating to cost and the site size.

 

A motion was made by Eichmann, seconded by Kvamme to introduce Resolution No. 2009-08 entitled, “A Resolution Entering Into A Joint Marketing Agreement With Fisher Group Promoting The Sale And Redevelopment Of The Former Saint Peter Ford And Four Seasons Interior Sites”.  All members voting aye, the Resolution was passed and adopted.

 

Reports:

 

Discover 169  - Wille stated the Discover 169 promotion is well underway.  He indicated that he ordered an additional 10,000 game cards.  He stated that a construction update will be held on Friday July 17 at 7:30 a.m.  Residence and business owners are invited to attend. 

 

MS/GS Enterprises – Wille stated that the EDA will consider deferring the MS/GS loan for an additional 24 months.

 

Creation Technologies -  Wille stated that the EDA has closed on the Creation Technologies loan.  He stated that the City is now in ownership of the existing Creation Technologies building.  He indicated that Larry Biederman, LJP Enterprises, was interested in purchasing the property but expressed some concern regarding truck traffic in and out of the premise. If Biederman is not interested in purchasing the property, the City may seek proposals from commercial real estate brokers to market the property. 

 

Hendrickson Organ – Wille stated Hendrickson Organ has submitted a Revolving Loan Request, seeking operating capital.  He indicated they are having cash flow difficulties.  Wille stated that 2008 Financials are needed before the loan can be submitted to the EDA for consideration.  Favre felt a line of credit would be more appropriate for this business.

 

Weber’s Family Restaurant  -  Wille stated that Weber Family Restaurants, Inc. has submitted a Revolving Loan Request in the amount of $125,459 to finance remodeling of the facility, refinance existing debt and to pay delinquent franchise fees to Country Kitchen International. 

 

Hunter Hardwood – Wille said that Greg Schettler of Hunter Hardwoods is intending to submit a Revolving Loan Application in order to expand at his existing location.

 

River Trail Application -  Wille stated that the City of Saint Peter has joined Nicollet, LeSueur and Blue Earth Counties to discuss connecting the trail to Mankato.

 

Kwik Trip – Wille reported that he will be meeting with the utility providers on July 23, 2009 to review necessary utility information for the construction of Kwik Trip.

 

Nielsen Chev/Olds  -  Wille reported that RW Carlstrom has discussed the possibility of purchasing the Nielsen Chev/Olds property, remodeling the building, and leasing it to the Saint Peter Food Coop.

 

Wille invited EDA members to attend the City Council workshop on August 17, 2009 at 5:30 in the Governor’s Room.  Jonathan Zierdt Greater Mankato Growth, will be there to discuss Regional Cooperative Marketing.

 

Adjournment

 

With not further business to conduct, a motion was made by Favre, seconded by Hansen to adjourn.  All voting in favor, the meeting adjourned at 1:08 p.m.

 

 

 CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

SPECIAL MEETING MINUTES – April 23, 2009

Saint Peter Community Center – Governors Room

 

Following public notice as required by statute, a Special Meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:00 p.m.  Roll call was taken with members Jay Hansen, Ken Eichmann, John Kvamme and Mike Favre in attendance.  EDA member Bob Southworth was unavailable to attend the meeting.  Community Development Director Russ Wille and Shannon Sweeney of David Drown & Associates were also in attendance.

 

Motion by Kvamme, seconded by Hansen to approve the meeting agenda.  All voting in favor, motion carried.

 

Motion by Kvamme to approve the submitted minutes of the March 26, 2009 meeting of the EDA.  Seconded by Eichmann.  All voting in favor, motion carried.

 

Motion by Hansen to approve the submitted minutes of the April 2, 2009 Special Meeting of the EDA.  Seconded by Eichmann.  All voting in favor, motion carried.

 

CREATION TECHNOLOGIES

 

Community Development Director Wille explained the details of the proposed purchase of the Creation Technologies real estate located at 430 Ritt Street. 

 

It is proposed that the EDA purchase the Creation Technologies (CT) property for $1,100,000.  The EDA would propose to lease the facility back to CT for up to 12 months while Traverse des Sioux Enterprises, LLC constructs a new 50,000 square foot manufacturing plant in the North Industrial Park.

 

It is proposed that the EDA finance the project utilizing both the revolving loan account funds and the issuance of a $540,000 revenue bond.  The bond would be placed at the local banks through a negotiated sale negotiated by Shannon Sweeney.  $600,000 of the purchase price would be finance from the revolving loan accounts.

 

The bonds would be issued with a maturity date of May 1, 2013.  The five year issuance should allow the EDA to market and sell the property following CT’s move to the new North Industrial Park facility being constructed by Traverse des Sioux Enterprises.  The bon

ds will subject to a 5.75% rate of interest.

 

Wille explained that today’s EDA action would provide for approval of the revenue bonds, lease / purchase agreement, business subsidy agreement, mortgage and development agreement(s).  The City Council would be expected to ratify the EDA action later in May.

 

A motion was made by Eichmann, seconded by Kvamme to introduce Resolution No. 2009 -06 entitled, “Resolution Authorizing The Issuance Of A Taxable Lease / Purchase Revenue Bond, Series 2009B And The Execution And Delivery Of A Loan Agreement, Mortgage, Lease, Purchase Agreement And Assignment Of Lease”.  With no further discussion, Members Eichmann and Kvamme voted in favor of the motion to pass the resolution, members Favre and Hansen abstained from the discussion and vote due to their employer’s intent to purchase the bonds subject to issuance.  The motion Resolution was passed and adopted.

 

Adjourn

 

With no further business to conduct, Kvamme moved to adjourn, seconded by Eichmann.  All voting in favor, meeting adjourned.

 

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – March 26, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:02 p.m.  Roll call was taken with President Favre, John Kvamme, Bob Southworth, Jay Hansen and Ken Eichmann in attendance.  .There are currently two vacancies on the EDA.  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitor present was David Olson of Richard’s Restaurant.

 

Approval of Agenda:

 

A motion was made by Kvamme, seconded by Eichmann to approve the meeting agenda as presented.  All voting in favor, the agenda was approved.

 

Approval of Minutes:

 

A motion was made by Kvamme, seconded by Eichmann to approve the minutes of the February 26, 2009 meeting with the following amendment in the first paragraph, “there are two Board vacancies”.  With no further discussion, all voting in favor, motion carried and the minutes were approved as amended.

 

Oath of Office:

 

Community Development Director Russ Wille administered the oath of office to new member Jay Hansen.

 

JP Olson (Richard’s Restaurant) – Deferral Request

 

Wille reviewed the history of the Richard’s Restaurant project.  He indicated that there has been difficulty with cash flow resulting in written correspondence from David Olson, JP Olson, LLC, requesting that the EDA/City of Saint Peter defer all loan payments through June, 2009. 

 

Wille explained that JP Olson has been delinquent on their revolving loan as well as payments due to both the Pioneer Bank and the SBA.  He indicated that any of the three lenders could initiate collection and begin the foreclosure process.  Wille said that Olson reported that Pioneer Bank and the SBA have agreed to allow for variance from the established repayment schedules as Richard’s Restaurant attempts to reorganize to allow for profitable operations. 

 

Wille stated that JP Olson has been offered an opportunity to enter into a joint venture with the owners of the Red Skye lounge in Mankato to provide a full menu food service.  He said that the Red Skye food service agreement would be limited to the cost of food and kitchen labor (cooks).  The wait staff of the Red Skye would serve the food prepared by Richard’s kitchen staff.  Wille stated that the new source of income from Red Skye lounge, along with staffing and operational changes implemented at Richard’s Pub, would be expected to enhance the ability for JP Olson to property cash flow the operations.

 

David Olson addressed the EDA stating that the economic climate, labor costs, and operating expenses have all contributed to the cash flow problem.  He stated that management is planning to aggressively reorganize the operations in an attempt to reduce costs.  He also stated that he feels the endeavor with Red Skye in Mankato would enhance the ability to properly cash flow the operations and he would be able to fulfill his financial obligations.

 

Wille recommended that the EDA approve a resolution recommending modification to the terms of the $320,000 revolving loan.  Discussion followed.

 

Hanson stated that he was in favor of modifying the terms of the $320,000 revolving loan subject to SBA approval.  Hanson excused himself from the meeting at 12:16 p.m.

 

Favre said he would accept the deferral subject to certifying Olson’s personal guarantee.  Olson stated that he does not have enough from his personal finances to cover the loan.

 

A motion was made by Favre, seconded by Kvamme to table the request until EDA members are able to review the personal financials of David Olson.  All members voting aye, the motion carried.  It was stated that a special meeting would be held on April 2, 2009 to act on the request.

 

Creation Technologies

 

Wille reported that the City and EDA are going to proceed with the purchase of the existing Creation Technology building without a purchase agreement from LJP (Larry Biederman).  He indicated that Creation Technologies will be renting the building for $1 per month until their new construction is completed. 

 

Wille stated that Creation Technologies is working with Lidstrom & Carlstrom finalizing their building plans.  He stated that Shannon Sweeney of David Drown & Associates and Mary Ippel of Briggs and Morgan are working together on the Revenue Bond.

 

Highway 169 Project – Special Financing

 

Wille updated members on the Highway 169 Reconstruction Project.  He distributed a preliminary budget that the Downtown Promotion Committee created.

 

Reports:

 

Façade Enhancement-  Wille stated that there is one business taking advantage of the Façade Enhancement program at this time.  Kvamme said he would like this program promoted next summer and would like to have the State Historical Society involved.

 

Handicapped Accessibility – Kvamme suggested that a program be established to address buildings with limited handicap access. He indicated that it would be adventurous to do this while the Hwy 169 project is underway. He stated that the majority of buildings that are not handicap accessible need to have the doors removed and replaced to swing “in” versus “out”.

 

Adjournment

 

With no further business to conduct, a motion was made by Southworth, seconded by Eichmann to adjourn.  All voting in favor, the meeting adjourned at 1:11 p.m.

 

 CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – February 26, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:04 p.m.  Roll call was taken with President Favre, John Kvamme, Bob Southworth and Ken Eichmann in attendance.  Member Greg Seitzer was absent and there are two Board vacancies..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance. Visitors present were City Administrator Todd Prafke, Finance Director Paula O’Connell and Shannon Sweeney of David Drown and Associates.

 

Approval of Agenda:

 

Motion by Kvamme, seconded by Southworth to approve the meeting agenda subject to an amendment to move “New Business” ahead of “Unfinished Business”.  All voting in favor, motion carried.

 

Approval of Minutes:

 

A motion was made by Kvamme, seconded by Eichmann to approve the minutes of the January 22, 2009 meeting of the Economic Development Authority as submitted.  With no further discussion, all voting in favor, motion carried and the minutes were approved as submitted.

 

Community Center Refinancing

 

Wille stated that bonds were issued to finance the construction of the Saint Peter Community Center.  He said the EDA worked cooperatively with the City Council to issue the debt.  Wille stated that the EDA is provided with the opportunity to consider the refinancing of the Community Center debt in an effort to reduce the interest expense.

 

Shannon Sweeney of David Drown and Associates explained that they have been working with Stifel Nicolaus, on behalf of the City, on the negotiated sale of refunding bonds for the 2001 Public Project Revenue Bonds issued to the EDA for the Community Center.  Sweeney said the City should be able to save approximately $200,000 over the remaining 11 year life of this bond issue if the Stifel proposal is accepted. 

 

Sweeney reported that Stifel has proposed a fixed interest rate for the remaining term of the bond issue of 4.65%.  He said the present scale ranges from 5.3% in 2009 to 6% in 2020.  Additionally, Sweeney indicated that the existing issue required a debt service reserve of $330,000, and that this reserve would be applied to pay down the principal of the new issue which results in lower annual payments. 

  

A motion was made by Favre, seconded by Southworth to introduce Resolution No. 2009 – 02 entitled, “Revenue Bond Resolution $2,775,000 Public Project Revenue Refunding Bond Series 2009A (City of St. Peter Lease With Option To Purchase Project) Economic Development Authority Of The City Of St. Peter”.  With no further discussion, all members voting aye, the Resolution was passed and adopted.

 

Terrasol - Extend Note

 

Wille stated that Mark and Sandy Johnson obtained a revolving loan from the EDA in the amount of $130,000 in 1999.  Wille stated the note was to be repaid in full via balloon payment of March 1, 2009.  The balance of the note is $50,732.54.   

 

Wille stated that the Johnson’s have recently determined that it would be prudent to relocate the Terrasol business to the family homestead. They have been attempting to sell the building with no luck.  The Johnson’s have requested that the EDA/City Council grant a six month extension of the balloon payment due date in hopes the building will sell.  Wille stated the Johnson’s would continue to provide monthly payments and all other terms of the note would remain.  He also stated the loan would continue to be collateralized in the original manner.

 

Wille recommended the request be granted with a twelve month extension.

 

A motion was made by Kvamme, seconded by Favre to introduce Resolution No. 2009-03 entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided To Mark & Sandy Johnson DBA Terrasol Restoration And Renovation”.  All members voting aye, the Resolution was passed and adopted.

 

Highway 169 Project – Special Financing

 

Wille reported that the State of Minnesota was awarded federal financing (stimulus money) to undertake public construction, reconstruction and enhancement projects.  Wille reported that MN/Dot has decided to resurface and reconstruct a portion of the Hwy 169 (Hwy 169/ Hwy 22 to Chestnut) in St. Peter. 

 

Wille stated that the project will undoubtedly create numerous challenges for Saint Peter businesses during construction.  He said the retail sector will be considerably disadvantaged due to the continued disruption of highway traffic. 

 

Wille and Prafke recommended that the EDA contribute funds in the amount of $25,000 to assist in marketing the St. Peter business community and central business district during the Hwy 169 reconstruction project.  Wille added that Saint Peter Chamber of Commerce Director Larry Haugen has endorsed the idea and is willing and able to assist in determining the appropriate course of action.

 

A motion was made by Southworth, seconded by Eichmann to introduce Resolution No. 2009-04 entitled, “A Resolution Recommending The Commitment of $25,000 To Promote And Market The Saint Peter Business Community During The Disruption Of The Highway 169 Reconstruction Project Through The Central Business District”.  All members voting aye, the Resolution was passed and adopted.

 

Reports:

 

Loan Reports  -  Wille reported that Fred Struck (Traverse des Sioux) made a partial February payment and hopes to pay the remaining balance with the March payment.  He also stated that David Olson (Richard’s Pub) did not make his February payment.  Wille indicated that if the loan is not brought up-to-date in March, he will address the matter with City Attorney Jim Brandt.

 

Kwik Trip – Wille said that the Jefferson Avenue TIF process has begun.

 

Ecument/BHS – Wille announced that Ecumen/BHS has signed a Purchase Agreement for Lots 2 – 7, Blk 1, North Industrial Park.

 

Triangle Subdivision -  A consortium of local units of government are seeking to locate a multi-unit housing development serving mentally ill individuals.  They are negotiating with Wayne Wandersee for a triangle subdivision location. 

 

Hendrickson Organ - Wille stated that representatives from Hendrickson Organ inquired about a revolving loan.  Wille said he explained the process and was uncertain whether Hendrickson would choose to proceed.

 

Adjournment

 

With not further business to conduct, a motion was made by Eichmann, seconded by Southworth to adjourn.  All voting in favor, the meeting adjourned at 1:05 p.m.

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGULAR MEETING MINUTES – January 22, 2009

Saint Peter Community Center – Governors Room

 

 

The regular meeting of the Saint Peter Economic Development Authority was called to order by President Mike Favre at approximately 12:00 p.m.  Roll call was taken with President Favre, John Kvamme, Bob Southworth and Ken Eichmann in attendance.  Member Greg Seitzer was absent and there are two Board vacancies at this time..  Community Development Director Russ Wille and Administrative Secretary Cindy Moulton were also in attendance.

 

Approval of Agenda:

 

Motion by Eichmann, seconded by Kvamme to approve the meeting agenda subject to an amendment to add “Election of Officers”.   All voting in favor, motion carried.

 

Election of Officers:

 

A motion was made by Southworth, seconded by Kvamme to nominate Favre as President.  Members Southworth, Kvamme, and Eichmann voting aye, member Favre voting nay, the motion was carried.

 

A motion was made by Kvamme, seconded by Eichmann to nominate Southworth as Vice President.  All members voting aye, the motion carried.

 

A motion was made by Kvamme, seconded by Southworth to nominate Wille as Secretary and the Finance Director Paula O’Connell as Treasurer.  All members voting aye, the motion carried.

 

Approval of Minutes:

 

A motion was made by Kvamme, seconded by Southworth to approve the minutes of the August 28, 2009 meeting of the Economic Development Authority as submitted.  With no further discussion, all voting in favor, motion carried.

 

Chippewa Packaging RLF (terms):

 

Wille reported that Chippewa Packaging continues to face many challenges as it attempts to develop additional revenues, customers and contracts.  Wille said that the City has been accommodating in the attempt to provide loan terms which support the growth of the company.  He said the City has allowed Chippewa to pay interest only on two $100,000 loans since 2007 and recommended the EDA extend the interest only payments through December 31, 2010. 

 

Southworth recommended that interest only payments be extended through December 31, 2009 at which time it will be reviewed. 

 

A motion was made by Southworth, seconded by Favre to introduce Resolution No. 2009 – 01 entitled, “A Resolution Recommending Modification Of Loan Terms For Two Revolving Loans Previously Provided To Chippewa Packaging, Inc.”   With no further discussion, all members voting aye, the Resolution was passed and adopted.

 

Creation Technology – Building Purchase:

 

Wille reported that negotiations with Creation Technology regarding their expansion are moving forward.  Wille is working with multiple businesses interest and the Saint Peter Development Corporation in the purchase of the existing Creation Technology building. 

 

Reports:

 

Terrasol – It is unlikely the sale of Terrasol will take place as financing has not been secured by the potential tenant and the likely buyer is now willing to move forward without having the property pre-leased.

 

4 Seasons Mall - The potential buyer of the 4 Seasons Mall is trying to assemble financing and would like to submit a revolving loan request in the amount of $300,000 to help with the purchase of the property.  Members did not feel there would be a benefit for the building to change hands in the absence of a building renovation / restoration project.

 

Kwik Trip -  Wille reported that the Kwik Trip development may not occur until 2010. 

 

Downtown Parking –  A meeting was held with property and business owners that are located on South Third Street from Broadway Avenue to Walnut Street regarding parking issues on South Third Street.  Wille indicated that there was no consensus to provide diagonal parking on the east side of the street and parallel parking on the west side.    

 

Food Coop – Wille said the development of Municipal Parking Lot #5 is a challenging project.  It is proving to be difficult to provide for a high quality development while remaining within what is considered to be acceptable lease rates.  The cost of the “shell” of the building would approach marketable lease rates.  Wille and City Administrator Prafke will continue to review the plans with representatives of I&S Engineers to identify potential cost savings.

 

BHS – Benedictine Health Systems is preparing plans and specifications for the construction of senior housing services on the River’s Edge Hospital campus.

 

Ecumen – Wille stated that he directed representatives of Ecumen to sites adjacent to the City limits.  He also shared the appraisal the City had done on the Dave Bell property.

 

Adjournment

 

With not further business to conduct, a motion was made by Southworth, seconded by Eichmann to adjourn.  All voting in favor, the meeting adjourned at 12:59.