IDC Agenda 10-18-1990
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AGENDA
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Thursday, October 18, I 90 - 7:00AM
City Ha'l
MEMBERS: Chairperson Shelley ohnson, Don Smith, Ron Hoglund,
Ken Maus, Harvey Ken all, Dale Lungwitz, Jay Morrell,
Lowell Schrupp, ArveiGrimsmo, Dennis Taylor, Linda
Mielke, Dave Peterso , John McVay, Tom Pogatchnik,
Tom McDermott, and B b Dawson.
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. APPROVAL OF THE SEPTEMBER 0, 1990 IDC MINUTES.
3. CONSIDERATION TO HEAR IDC INANCIAL REPORT.
4.
PROSPECTS:
Jeff Eastey En
Yeager, Pine,
1.2 million sq
15,000-20,000
8,000 sq ft Ie
30,000 sq ft 1
erprises, Inc.
nd Mundale
ft Distribution Center
q ft leaseable facility
seable facility
aseable facility
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5. CONSIDERATION TO FINALIZE HE IDC BANQUET.
6. CONSIDERATION OF FOLLOW-UP ON THE POTENTIAL LEASEABLE BUILDING
PREPLANS.
7. CONSIDERATION OF INFORMATI NAL ITEMS: STAR CITY AWARDS
GMEF APPROVAL FOR THEATRE EXPANSION
BRE SURVEY AND VISITS
TIRE SERVICE EQUIPMENT WELCOME
PUC ORDER FOR COST STUDY
8. OTHER BUSINESS. REA LOAN CRITERIA
9. ADJOURNMENT.
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MINUTES
MONTICELLO INDUSTRIAL DE
Thursday. September 20
City Hall
ELOPMENT COMMTTEE
1990 - 7:00AM
MEMBERS PRESENT:
Chairperson
Lowell Schru
Ron Hoglund.
Maus. Linda
Lungwitz.
he11ey Johnson. Harvey Kendall,
p, Dave Peterson. Arve Grimsmo,
Bob Dawson, Dennis Taylor. Ken
ielke, John McVay, and Dale
MEMBERS ABSENT:
Don Smith, Ja
Tom McDermott.
Morrell, Tom Pogatchnik, and
STAFF: Ollie Koropchak.
1. CALL TO ORDER.
Chairperson Shelley Johns n called the IDC meeting to order
at 7:00 AM.
2.
APPROVAL OF THE AUGUST 16, 1990 IDC MINUTES.
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Ron Hoglund made a motion to approve the August 16, 1990
IDC minutes. seconded by arvey Kendall. the minutes were
approved as written.
3.
CONSIDERATION TO HEAR IDC FINANCIAL REPORT.
Treasurer Ron Hoglund rep
of $48.65, money market b
State Bank, and a money m
Security Federal Banking
$5,945.62. Arve Grimsmo
IDC financial report as
the report was accepted
rted an IDe checking account balance
lance of $1.855.65 at Wright County
rket balance of $4,041.32 at the
Savings. Total balance of
ade a motion to accept the
g ven, seconded by Lowell Schrupp,
a d filed.
4. PROSPECTS: Jeff Eastey E terprises. Inc. - the loan application
for SBA 7(a) unding is presently at the Wright
County State ank for review. Approval by the
bank to part! ipate in this financial package
has not been etermined. Because this loan
application is between the developer and the bank.
I except to hear of the loan approval/denial from
the developers. The banks determination is expected to
be made earl next week. After the company
receives ban approval for the SBA 7(a) program.
will the GME' formal loan application be
analyzed and the Central Minnesota Initative
Fund applica ion be submitted.
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Chairperson J hnson encouraged the expansion as
the company's product is in it's prime stage for
development, good product with the ability for
repairs. Dal Lungwitz said it's a difficult position
for the bank, as the EDA relies on the credit analysis
of the lending institution officer.
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IDC Minutes
9/20/90
Page 2
Lake Tool - Th Lake Tool Company remains interested
in a Monticello location, however, Eric
Bo dhus also reports that his company has
be n working with their largest customer,
wh 's now located in a north St. Paul
su urb and anticipating a relocation. There
is the potential of a joint relocation
ad enture. His largest customers is
in erested in a site closer to his
ex sting customers. Lake Tool's lease
ex ires in the fall of '91.
4. CONTINUED:
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Yeager, Pine & Mundale - Ko opchak reported that the city had
re eived a letter from a consulting firm
re uesting information about Monticello
an an enclosed questionaire to be completed.
Th eight page questionaire was distributed
am ng people with expertise in the area of
tho e particular questions. She thanked those
pe ple and said the information was mailed
on August 21th. The consultant's client
wa interested in siting an industrial "facility.
Si ce having received no response and to comply wit
the co sultants request for no telephone calls,
a ollow-up letter of interest was mailed
on September 11. Koropchak has not heard
fr m the consulting firm.
Cargill Feed Mill - En losed with the agenda IDC members received
a opy of the letter received from Mike
We tpahl stating Cargill's site location to
be other than Monticello. As per the newspaper
th site location was determined to be in the
Ci y of Big Lake. The availability of rail
wa a high priority of which Monticello's
on y zoned industrial land was the Hoglund
pr perty (1-1) which was served by a rail
wh ch does not receive daily maintenance.
Th property would have required a zoning
am ndment to 1-2. The IDC members recognized
po ential benefits to Monticello with a
Bi Lake location.
The H-Window Company - At orney Tom Hayes drafted a Right of First
Re usal of which the City Council has approved
th entering into an agreement with the H-Window
Co pany. The agreement expires December 31, 1991
~n allows for 30 days to respond from the
da e of notificatidnby the City of Monticello
of an interested buyer. The H-Window Company
bo rd will receive the document in October.
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IDC Minutes
9/20/90
Page 3
4. CONTINUED.
30,000 sq ft inquiry - On A gust 22, Mr. George Briscoe called
andOnquired about the availability of a
30,01 0 sq ft 1easeable facility in Monticello.
The ndisclosed company is a service company
for food process products and pharmaceutical
pro ucts. 25-50 jobs in one year. Time frame
of ix months. With no such size facility
ava o.lable presently, Koropchak explained the
IDC's Vlans and a potential developer's willingness
to onstruct a facility to meet their needs.
The TIF pay-as-you-go assistance was explained
and included with Monticello's marketing information
TheTIF Analysis/Lease Proposal was estimated at
nproximate $3.69 per sq ft rent cost, a
~tion of $1.00 per sq ft.
Federal Cartridge McVay reported that NSP has backed away from
her site location assistance with Federal
Car ridge, however, other sites in the Becker
area are being considered.
5.
CONSIDERATION OF
ON THE TIRE SERVICE E UIPMENT RECEPTION.
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Koropchak reported she ha
date for the IDC members
meant as a welcome to Mon
of the idea. Koropchak s
this presents a conflict
will be out of town at a
Dale Lungwitz reported th
holdings to the north lot
next week.
contacted Mr. Ray Schmidt to set up a
o visit and view his operations, this
ice11o. Mr. Schmidt was very reciprocal
ggested the first week of October, however,
or Ray and his partner as they
rade show. The date will be set later.
company is considering expanding their
and will be meeting with the partnership
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Koropchak reported that ae Veit, Torn Gowleski, Pat Pe1string,
and herself met and disc ssed the idea of preliminary construction
plans: the willingness f a developer to draft preliminary site
plans for review and app oval by the City Building Inspector
as a speculative concept the willingness of a developer to
locate an appropriate Mo tice110 site and to arrange a land
commitment between the 0 er and the developer. The City
of Monticello could assi t with TIF Pay-As-You-Go Lease Proposal
of approximately $1.00 p r sq ft rent cost reduction. Pat
pelstring suggested thre building plans of 15,000, 20,000, and
25,000 sq ft each with m nufacturing and office space (office
sq footage not to exceed 10% of the mfg sq footage.) The plans
to be very basic and of concrete. The developers were interested
in the concept with the understanding the leasee must be a credit
worthy business and be illing to sign a 10 year lease.
It would be proposed th t a TIF Plan be drafted and
ON THE POTENTIAL LEASEABLE BUILDING
6.
CONSIDERATION
PREPLANS .
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IDe Minutes
9/20/90
Page 4
6. CONTINUED.
distributed to the taxing j risdictions to allow the 30
day time allowance for TIF omment. Mr. Bob Dieke suggested
not to call a public hear in until a project is secured and
the development agreement i agreed upon. A public hearing
notice must appear at least once not less than ten days nor
more than 30 days prior to he date of the hearing. Koropchak
was to mail maps of all ava'lable zoned I-I and 1-2 property
along with property contacts and telephone numbers to Shingobee.
This concept would require a upfront TIF Plan drafting fee
of $3,800, The IDC suggeste. the city attorney draft a
performance agreement betwee the developer and the HRA/City.
It was suggested to Contact inkelman Construction of their
interest. Gae, Tom and myse f will tour' the sites after the maps
have been reviewed by Shingo ee staff.
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Enclosed in the agenda was a copy of a page from the Minnesota
Enterprise, Fall '90 which 1 sted industrial space for lease
or sale in Minnesota. It noted a 29,750 sq ft manufacturing
facility available in Monticello. Koropchak called Terrell
Towers of the Depart of TED a d he said the listing was through
O'Neill Realty of St. Cloud, on Weisman, 251-1177. Koropchak called
the realty and the bUilding w s at 218 Chelsea Road, Claw Stamping.
The listing was over two year old. Koropchak contacted Mr.
Clow who reconfirmed his posi ion of a year ago that Claw
Stamping plans to stay in Man icello and is not interested in
leasing out a portion of thei manufacturing space. Available
for rent is the Upper level 0 fice space. That leaves the only
available industrial space fo lease in Monticello, to my
knowledge, is the Jay Morrell bays.
The IDC members recommended Ko opchak continue working with
developers.
7. CONSIDERATION OF FOLLOW-UP ON
Jeff O'Neill not present, no
given.
KETING STRATEGY.
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8. CONSIDERATION OF IDC BANQUET
TICKET DISTRIBUTION.
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Koropchak handed out envelopes to IDC members which Contained
their Contact list for IDC tic et sales and reminded them that
they should not limit themselve to the list only. Ticket
sales have declined in the prev'ous few years, however, she encouraged
members with a early ticket sal s start, excellent speaker, and
recent community developments t at tickets should sell easier.
Shelly Johnson, Don Smith and K ropchak will finalize the menu
choice and program.
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IDC Minutes
9/20/90
Page 5
9. INFORMATIONAL ITEMS: Koropchak i formed the IDC members that
Mayor Maus, Supt. Shelley Johnson, and
herself had attended the Bondhus Company
banquet whi h was in honor of their visiting
Japanese. he twelve Japanese were presented
with a Mont cello T-shirt and a Monticello
marketing b ochure. Koropchak thanked Ken
and Shelley for taking the time from their
busy schedules and expressed the importance
of such kind of exchange with our industries
as it falls nder the IDC goals of BRE.
Koropchak re
for one of t
presented at
September 27
submitted fo
total market
how the mate
orted that Monticello was a candidate
e All-Star City Awards to be
the Star City Banquet on Wednesday,
1990. Also, Koropchak had
state competition Monticello's
ng program with an explanation of
ials are or will be used.
Two prelimin ry GMEF loan applications have
been received for preliminary evaluation by
the EDA Executive Director prior to formal
application review by the EDA. The two applicants
are Jeffrey Estey and Salley Eastey, and Robert
Muller and Mi hael Muller.
The HRA is cu
catalyst to a
property mark
in finding a
zoned R-2.
10. OTHER BUSINESS:
Koropchak reported
of Farm Credit to
the former Boyle p
Farm Credit would
developer is inter
the Farm Credit co
11. ADJOURNMENT.
The IDC meeting adjourned at 7:45
~ \~uo~..l~
Ollie Koropchak
IDC Executive Secretary
rently considering to act as a
sist Fred Gille on how to make his
table (PCA issues) and to assist
otential developer for the property
she would be contacting John Meyer
heck the current statis of
operty, to verify the process
ike the-City to follow if a
sted in the property, and who
tact person is.
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Council
MONTICELLO WINS ONE OF THE STAR
AWARDS. (O.K.)
After Monticello received Star City Recertification last April, the
City qualified as a candidate for 0 e of the All-Star City Awards.
Thirty-five Star Cities out of on hundred three qualified as a
candidate. Awards were presented t the Annual Star City Banquet
held in late September which was attended by Jeff 0' Neill and
myself. I was disappointed Montie 110 didn't win one of the All-
Star City Awards because people wo ked so hard. We accomplished
many great projects. The communiti s awarded All-Star city Awards
were Champlin, Two Harbors, Halloc , Windom, and Plainsview.
Monticello's marketing program .as also submitted for state
competition. The good news is tha Monticello shared first place
for its overall marketing program. The City's stationery, business
cards, teaser/mailer, and brochure were submitted along with the
Chamber's T-shirt, sweatshirt, stat"onery, and note cards. A short
paragraph or two explained Monticello's logo concept and explained
how Monticello's total marketing ma erials are being use. Included
in the explanation was the Cha er' s proposed media marketing
program using the City logo.
Monticello received 282 points out of a possible 330.
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Comments: Overall a very strong well thought out
campaign. The repeat a pearance of the logo
re-enforces the Monticello image and is easy
to identify. Also, neat y ties in all of the
various elements used i a strong marketing
campaign. Excellent m terials - very well
coordinate. Unfortunat ly, I do not get any
sense of the town itself The consistency and
attractiveness makes his program work.
Brochure was tasteful - ot over done - great
piece.
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Other winners were Litchfield and New Brighton-~ Honorable mentions
went to urnsv1lle, Northfield, airmont, and Fairbault County.
Video awards were presented to La eville and Windom.
CONGRATULATIONS! Hats off to Mon icello.
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1990
October 11, 1990
Business Promotion Division
900 Am.erican Center Building
150 East Kellogg Boulevard
St. Paul, Minnesota 55101-1421
612/296-3977
Fax: 612/296-1290
Ms. Ollie Koropchak
Economic Development Direc or
city of Monticello
250 East Broadway
Monticello, MN 55362
Dear MS~Chak:
Thanks so much for be'ng a panelist for the Nuts
and Bolts session at the T nth Annual star city
Conference. The evaluatio s indicated that the session
went very well.
I was pleased to hear that there was good
participation from the aud'ence as well. That is a
good indicator that the sp akers were doing their job
to stimulate the audience.
Again, thanks for you cooperation and
presentation. The best of luck in your continued
economic development effor
sincerely,
e . Simon
omic Development Repre entative
-297-1168
An Equal Opportunity Employer