City of Saint Peter, Minnesota

CITY OF SAINT PETER, MINNESOTA

ECONOMIC DEVELOPMENT AUTHORITY

REGUALR MEETING MINUTES – January 26, 2012

Saint Peter Community Center – Governors Room

Call to Order

The meeting of the Saint Peter Economic Development Authority was called to order by Community Development Director Russ Wille at approximately 12:00 p.m. Roll call was taken with Mike Favre, John Kvamme, Bob Southworth, Marilyn Rundell, and Ken Eichmann in attendance. James Dunn and Jay Hansen were absent. City staff present were Community Development Director Russ Wille, Administrative Secretary Cindy Moulton, City Administrator Todd Prafke, and City Attorney Jim Brandt. Visitor present was Paul Tanis, representing Brian Grey.

Wille introduced the City Administrator intern Stephanie Korba.

Approval of Agenda

A motion was made by Eichmann, seconded by Rundell to approve the agenda as presented by staff. All voting in favor, the motion carried.

Election of Officers

A motion was made by Rundell, seconded by Southworth to nominate Favre as President. All members voting aye, the motion carried. A motion was made by Kvamme, seconded by Eichmann to nominate Southworth as Vice President. All members voting aye the motion carried. Wille explained that the Treasurer position is held by the City Finance Director and the Secretary by the City Community Development Director. All members agreeing, the election of officers was complete.

Approval of Minutes

A motion was made by Kvamme, seconded by Eichmann to approve the minutes of the December 22, 2011 EDA meeting. With all voting aye, the motion carried.

Brian Grey (dba Volk Electric) – Note Consolidation

Wille stated that at the December 22, 2011 meeting the EDA tabled Brian Grey’s (dba Volk Electric) request for a 24 month extension of his revolving loans to determine Grey’s affiliation with Volk Electric and how he intended to repay the loans.

Kavmme asked what the status of the new company is and how the loans will be paid back. Wille stated the loans would be repaid by Brian Grey and his spouse and both would be required to sign the personal guaranty.

Tanis addressed the EDA on behalf of Grey. He stated that the new Volk Electric, Plumbing & Heating Corp leases space at the former 4 Seasons Carpet building. He said that some of the equipment was purchased back from the auction. Tanis stated that there is a master plumber on staff and that Grey manages the company and is not the owner.

Wille recommended that Grey be granted a 24 month extension on both revolving loans, with an interest rate of 6%, with payments beginning March 1, 2012. He indicated the first payment would be credited towards interest and late penalties.

Kvamme asked what the reason was for increasing the interest rate from 3% to 6% as that would increase the financial burden on Grey. Wille said that increasing the interest rate for loan extensions was discussed at previous meetings.

A motion was made by Kvamme, seconded by Eichmann to extend the notes 24 monthsat an interest rate of 3% and maintain the same amortization schedule. Members Rundell, Kvamme, Southworth and Eichmann voting aye, Member Favre abstaining, the motion carried.

A motion was made by Kvamme, seconded by Eichmann to introduce Resolution No. 2012 – 01 entitled, “A Resolution Recommending Modification Of Loan Terms For Two Revolving Loans Previously Provided To Brian Grey”. Members Rundell, Kvamme, Southworth and Eichmann voting aye, Member Favre abstaining, the Resolution was passed and adopted.

Wille stated that the City Council will discuss the recommendation of the EDA at their next workshop .

Beaudry Creative (dba Envision) – Balloon Extension Request

Wille stated that Beaudry Creative received a revolving loan from the City in 2007 to partially finance the acquisition of Envision, Design That Works. The note is scheduled to be paid in full via balloon payment on February 1, 2012. Wille said Liz Beaudry, on behalf of her company, has requested the balloon payment be extended for an additional 24 months. Wille informed the EDA that Beaudry supplied correspondence from her primary lender which states the bank is not able to advance additional credit to Beaudry Creative, Inc. in an amount sufficient to repay the balloon as scheduled.

A motion was made by Favre, seconded by Rundell to introduce Resolution No. 2012 -02, entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided To Beaudry Creative, Inc. (Envision, Design That Works)”. Members Kvamme, Favre, Eichmann, and Rundell voting aye, Member Southworth abstaining, the Resolution was passed and adopted.

Reports

City Administrator Prafke updated the EDA on Midwest Theater Corporation foreclosure.

Fostering Professional Development – Wille reported that Cynthia Zarbano will not be seeking financing from the EDA .

Exceed/Chippewa – In January the businesses returned to making regular monthly payments. Finance Director Paula O’Connell met with the new business manager and brought her up to speed with the loans.

North End Commercial – Shopko is exploring opportunities to building in the north end of town. They are currently interested in the Northern Con Ag property located need Hallets Pond. Jim Halbur of Coldwell Banker –Fisher Commercial Realty is working with Shopko.

Smith Strip Mall – A strip mall will be erected at the former Budget Mart site on northwest corner of Jefferson Avenue and Hwy 169. The owners have met with Public Works regarding utilities.

Dranttel Option - Wille stated that the City has been in discussion with John (Butch) Dranttel regarding the purchase of his property north of the existing North Industrial Park.

Jari USA – Wille indicated the City will continue to work with Mr. Hertaus in exercising his option on the Ritt Street property. Wille stated that a portion of the rent paid for the property will be applied to the purchase price. The percentage of the rent applied will decrease the longer the option is not exercised.

Mankato/St. Peter Bike Trail – Wille is serving on the Committee. They are seeking DNR planning.

Adjourn

A motion was made by Rundell, seconded by Southworth to adjourn. All in favor of the motion, the meeting adjourned at 12:46 p.m.


		2005 Comprehensive Plan- Dog & Cat Licenses- Economic Development Programs- Liquor Licenses- Merchant Licenses- Zoning Code- Zoning Official Map- EDA- HPC- P&Z CITY OF SAINT PETER, MINNESOTA CITY OF SAINT PETER, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY REGUALR MEETING MINUTES – January 26, 2012 Saint Peter Community Center – Governors Room Call to Order The meeting of the Saint Peter Economic Development Authority was called to order by Community Development Director Russ Wille at approximately 12:00 p.m. Roll call was taken with Mike Favre, John Kvamme, Bob Southworth, Marilyn Rundell, and Ken Eichmann in attendance. James Dunn and Jay Hansen were absent. City staff present were Community Development Director Russ Wille, Administrative Secretary Cindy Moulton, City Administrator Todd Prafke, and City Attorney Jim Brandt. Visitor present was Paul Tanis, representing Brian Grey. Wille introduced the City Administrator intern Stephanie Korba. Approval of Agenda A motion was made by Eichmann, seconded by Rundell to approve the agenda as presented by staff. All voting in favor, the motion carried. Election of Officers A motion was made by Rundell, seconded by Southworth to nominate Favre as President. All members voting aye, the motion carried. A motion was made by Kvamme, seconded by Eichmann to nominate Southworth as Vice President. All members voting aye the motion carried. Wille explained that the Treasurer position is held by the City Finance Director and the Secretary by the City Community Development Director. All members agreeing, the election of officers was complete. Approval of Minutes A motion was made by Kvamme, seconded by Eichmann to approve the minutes of the December 22, 2011 EDA meeting. With all voting aye, the motion carried. Brian Grey (dba Volk Electric) – Note Consolidation Wille stated that at the December 22, 2011 meeting the EDA tabled Brian Grey’s (dba Volk Electric) request for a 24 month extension of his revolving loans to determine Grey’s affiliation with Volk Electric and how he intended to repay the loans. Kavmme asked what the status of the new company is and how the loans will be paid back. Wille stated the loans would be repaid by Brian Grey and his spouse and both would be required to sign the personal guaranty. Tanis addressed the EDA on behalf of Grey. He stated that the new Volk Electric, Plumbing & Heating Corp leases space at the former 4 Seasons Carpet building. He said that some of the equipment was purchased back from the auction. Tanis stated that there is a master plumber on staff and that Grey manages the company and is not the owner. Wille recommended that Grey be granted a 24 month extension on both revolving loans, with an interest rate of 6%, with payments beginning March 1, 2012. He indicated the first payment would be credited towards interest and late penalties. Kvamme asked what the reason was for increasing the interest rate from 3% to 6% as that would increase the financial burden on Grey. Wille said that increasing the interest rate for loan extensions was discussed at previous meetings. A motion was made by Kvamme, seconded by Eichmann to extend the notes 24 monthsat an interest rate of 3% and maintain the same amortization schedule. Members Rundell, Kvamme, Southworth and Eichmann voting aye, Member Favre abstaining, the motion carried. A motion was made by Kvamme, seconded by Eichmann to introduce Resolution No. 2012 – 01 entitled, “A Resolution Recommending Modification Of Loan Terms For Two Revolving Loans Previously Provided To Brian Grey”. Members Rundell, Kvamme, Southworth and Eichmann voting aye, Member Favre abstaining, the Resolution was passed and adopted. Wille stated that the City Council will discuss the recommendation of the EDA at their next workshop . Beaudry Creative (dba Envision) – Balloon Extension Request Wille stated that Beaudry Creative received a revolving loan from the City in 2007 to partially finance the acquisition of Envision, Design That Works. The note is scheduled to be paid in full via balloon payment on February 1, 2012. Wille said Liz Beaudry, on behalf of her company, has requested the balloon payment be extended for an additional 24 months. Wille informed the EDA that Beaudry supplied correspondence from her primary lender which states the bank is not able to advance additional credit to Beaudry Creative, Inc. in an amount sufficient to repay the balloon as scheduled. A motion was made by Favre, seconded by Rundell to introduce Resolution No. 2012 -02, entitled, “A Resolution Recommending Modification Of Loan Terms For A Revolving Loan Previously Provided To Beaudry Creative, Inc. (Envision, Design That Works)”. Members Kvamme, Favre, Eichmann, and Rundell voting aye, Member Southworth abstaining, the Resolution was passed and adopted. Reports City Administrator Prafke updated the EDA on Midwest Theater Corporation foreclosure. Fostering Professional Development – Wille reported that Cynthia Zarbano will not be seeking financing from the EDA . Exceed/Chippewa – In January the businesses returned to making regular monthly payments. Finance Director Paula O’Connell met with the new business manager and brought her up to speed with the loans. North End Commercial – Shopko is exploring opportunities to building in the north end of town. They are currently interested in the Northern Con Ag property located need Hallets Pond. Jim Halbur of Coldwell Banker –Fisher Commercial Realty is working with Shopko. Smith Strip Mall – A strip mall will be erected at the former Budget Mart site on northwest corner of Jefferson Avenue and Hwy 169. The owners have met with Public Works regarding utilities. Dranttel Option - Wille stated that the City has been in discussion with John (Butch) Dranttel regarding the purchase of his property north of the existing North Industrial Park. Jari USA – Wille indicated the City will continue to work with Mr. Hertaus in exercising his option on the Ritt Street property. Wille stated that a portion of the rent paid for the property will be applied to the purchase price. The percentage of the rent applied will decrease the longer the option is not exercised. Mankato/St. Peter Bike Trail – Wille is serving on the Committee. They are seeking DNR planning. Adjourn A motion was made by Rundell, seconded by Southworth to adjourn. All in favor of the motion, the meeting adjourned at 12:46 p.m. 227 South Front Street Saint Peter, MN 56082 Phone: (507) 934-0661 Fax: (507) 934-4917 E mail: cindym@saintpetermn.gov