CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

MEETING MINUTES –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 11^th.

 

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 1^st Lutheran Church regarding construction of senior housing services.  If the 1^st 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.

 

OODLES

 

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.

 

GRAINMILLERS

 

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.