IDC Agenda 09-20-1990
.
AGENDA
MONTICELLO INDUSTRIAL DEVELO MENT COMMITTEE
Thursday, September 20, 1990 - 7:00 AM
City Hall
MEMBERS: Chairperson Shelley John on, Don Smith, Ron Hoglund,
Harvey Kendall, Jay Morr! 11, Ken Maus, Dale Lungwitz,
Arve Grimsmo, Dennis Ta lor, Tom Pogatchnik, John McVay,
Lowell Schrupp, Dave Petl rson, Tom McDermott, Bob Dawson,
and Linda Mielke.
STAFF: Rick Wolfsteller, Jeff 0' ,eill, and Ollie Koropchak.
1. CALL TO ORDER.
2. APPROVAL OF THE AUGUST 16, 19 0 IDC MINUTES.
4. PROSPECTS: Jeff Eastey Enter rises, Inc.
Lake Tool
Yeager, Pine & Mu
Cargill Feed Mill
The H-Window Comp ny
30,000 sq ft inqu ry
3. CONSIDERATION TO HEAR IDC FIN CIAL REPORT.
.
5. CONSIDERATION OF FOLLOW-UP ON THE TIRE SERVICE EQUIPMENT RECEPTION.
6. CONSIDERATION OF FOLLOW-UP ON POTENTIAL LEASEABLE BUILDING PRE-PLANS.
7. CONSIDERATION OF FOLLOW-UP ON MARKETING STRATEGY.
8. CONSIDERATION OF IDC BANQUET
D TICKET DISTRIBUTION.
9. INFORMATIONAL ITEMS: BRE (Jo nson, Maus, and Koropchak attend Bondhus
Co pany banquet).
Montice 10 candidate for All Star City.
Montice.110 promotional materials submitted
Star City conference competition. (Sept 26-28).
Koropchak to participate on Star City Conference
panel.
GMEF p eliminary applications received from
Jef Eastey Enterprise and Muller Theatre.
HRA to act as catalyst to assist Fred Gille on how to
make his pro erty marketable (PCA issues) and to assist
in inding a potential developer for the
pro erty zoned R-2.
10. OTHER BUSINESS.
11. ADJOURNMENT.
.
.
.
.
MINUTES
MONTICELLO INDUSTRIAL DEVEL PMENT COMMITTEE
Thursday, August 16, 1,90 - 7:00 A.M.
Ci ty Hall .
MEMBERS PRESENT: Chairperson She 1 on Johnson, Vice Chairperson
Don Smith, Ron H glund, Arve Grimsmo, Jay Morrell,
Lowell SChrupp, . ob Dawson, Harvey Kendall, Tom
Pogatchnik, Denn s Taylor, John McVay, and
Tom McDermott.
MEMBERS ABSENT: Ken Maus,
Mielke.
gWitz, Dave Peterson, and Linda
STAFF PRESENT: Rick WOlfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
Chairperson Sheldon Johnson cal ed the IDC meeting to order at
7:03 AM. ExCusing himself from the meeting, the Chairperson
turned the meeting over to Vice Chair Don Smith.
2. APPROVAL OF THE JULY 19, 1990 IDC MINUTES.
Ron Hoglund made a motion to app ove the July 19, 1990 IDC
minutes, seconded by John McVay, the minutes were accepted
as written and filed.
3. CONSIDERATION TO HEAR IDC FINANC AL REPORT.
Treasurer Ron Hoglund reported t at the IDC balances to date
were Wright County State Bank checking account, $150.70;
money market, $1,851.59; and Security Financial Banking &
Savings money market, $4,061.29. Total $6,063.58. Harvey
Kendall made a motion to accept t e treasurer's report
as given, seconded by Arve Grimsm , the report was filed.
4. PROSPECTS: Jeff Easte Enter ris s, Inc. _ Koropchak reported
that Shelly Johnson, Ron Hoglund, Jeff O'Neill and herself had
visited the Eastey operation in R gers on July 20. The group
viewed the shrink wrap machine an tunnel, met the principal
owner's Jeff and Salley Eastey and Attorney Charlie Rogers.
The company is interested in leasi g 7,200 sq ft from Jay
Morrell for manufacturing of rebui ts and in-house processing
rather than farming out. The owne 's look at Monticello
as a Possible location for their t tal operations.
Currently thoy own the facility in Rogers iuwhich they hesitate to expand
because of the high Henn Ctytaxes and to maintain a bettet Control of
the company's finances at a time 0 potential rapid growth.
Attorney Rogers was to meet with J y Morrel to finalize the
lease agreement. Plans are to have the financial package and
loan request at the requested lenders office this week. Time
table according to Pat Pelstring is thirty day review by Bank
and SBA, and sixty days from the cu rent date for fin~l approval
from the Greater Monticello Enterpr"se Fund and the Minnesota
Imitative Fund.
.
IDC Minutes
8/16/90
Page 2
4. CONTINUED. Lake Tool - Koro
herself had visited the Lake
The company does custom tool
met with Eric Bondhus, one 0
facility. Currently, they 1
expiration of summer '91. Th
nature, all in-house equipme
invest in a facility within
amenities and quality of lif
the old Fire Hall and will 1
5,000 sq ft facility in the
preliminary numbers with the
and Eric and she toured the
selection. The company is 1
and Maple Grove.
chak reported Jeff O'Neill and
Tool company in Rogers on July 24.
ng for injection molding. They
three owners, and toured the
ase the 4,200 sq ft with a agreement
ir operation is of very clean
t paid for, and are looking to
n a community which offers strong
The company is interested in
ok at options to construct a new
ndustrial park. Koropchak ran
use of TIF pay-as you-go assistance,
ndustrial park for potential site
oking at other sites in Elk River
Bio Medical Facility - Koro chak reported she had followed up
with the July IDC motion lire ommending the IDC be open to hearing
the educational presentation by Star West, with a clear understanding
that the IDe is not endorsin a Monticello site location."
Upon calling Mr Wally Wilbur on July 24th, he said the company had
a purchase agreement on some property near wet lands and that
he would pass the IDC motion information along to Star West for consideration
if the sale did not material"ze.
.
American Window and Door Com
tried to reach Mr. Rick Leon
Company to assist with the 1
for lease. This a recommend
lack of interest to consider
because the company indicate
- Koropchak reported she has
rd of the American Window and Door
cation of available industrial space
tion of the July IDC meeting along with
financial assistance for the company
it was going to file bankruptcy.
the
Advanced Resources - Koropch k reported in the last month the city
has received inquiries for i dustrial lease space for 15,000,
25,000 and 30,000 sq ft. Wi h the assumption that the Jeff Eastey
Enterprises leased 7,200 sq t from Jay Morrell, this means
Monticello has virturally no industrial space which on one hand
is good and on the other han may limit our recruitment of new
industries. Koropchak furth r reported she had contacted Pat
Pelstring of BDS, Inc. on th ability to use TIF on a leased
facility with only all the pans in order, not the building
constructed. Mr. Pelstring tated the TIF Plan can to drafted,
distributed to the jurisdict"ons, public hearing set, held, and
tabled until such time we ha a committed project. The TIF plan
would not be adopted until a committed project because an adopted
plan starts the clock on the life of a district. Other things
to do are 1) Find a willing developer to prepare preliminary site
plans, landscaping, drainage, and parking plans for review and
approval by our Building Ins ector. 2) Find a developer willing
to find and commit to a piec of industrial property. 3) Find
a developer willing to use T F pay-as-you-go with a direct write-down
of lease cost.
.
IDC Minutes
8/16/90
Page 3
.
4.
CONTINUED. Advanced Resource
development work completed so
the time it takes for constru
The goal is to have the major
we can offer a leased building in
tion (90 days).
Tom Pognatchnik saw this as a potential risk as the economic climate
is not good right now, howeve , with a reduction in the lease it
may have some merit. Koropch k reported in her conversation with
Advanced Resources that the a ailability of industrial space in
Greater Minnesota has greatly been reduced since that of five/six
years ago. Vacated school bu'lding are available however not
conducive to industrial use, acated auto dealership may be conducive
depending on location, and va ated implement dealership are conducive
to industrial use. The IDC r commended Koropchak pursue the
idea and encouraged her to co tact Gae Veit, Winkelman Construction,
Miller Construction, and Vaug n Veit as potential developers.
Yeager, Pine & Mundale - Thi a consulting business representing
a client who is interested in an industrial site location in Monticello.
The business has requested th city complete an eight page questionaire
of which questions pertain to environmental and quality of life issues.
Various community leaders and city staff answered questions of
their expertise. Koropchak tanked them and said the questionaire
along with the marketing broe ure, requested maps, city building and
zoning ordiances, etc. will be mailed Monday of next week.
.
Cargill Feed Mill - Koropcha reported that the company has made
their location decision, however, would formally notify communities
before their announcement of their decision. Koropchak expects
the notice next week and did not have strong feelin~that the
location was Monticello as r il was a priority.
Rick Knutson - Mr. Knutson's a local man who has designed a
cable connector which can a1 0 be used with a ground stake on a
dog leash allowing the dog g eater accessibility within an owner's
yard. He would like to asse ble and package the produce in Monticello
and is looking for available space to lease. The product has not
been patented. Koropchak ha given him various available lease
space suggestions and has in icated the city's willingness to write
a letter of city support for the Central Minnesota Imitative Fund application
if his plans indicate jobs w 11 be created in Monticello and he
has committed dollars for th start-up project (no monetary support
from the city).
.
NAWCO - At the BRE breakfast
to a few IDC members the pot
Company. The company acknow
marketing efforts and with t
the company saw it's best mo
The company~s expanded thei
and Denver, and now produce
believe their capabilities i
three years to be $100,000,0
company reaches that goal an
held in June, Mr. Steve Lemme, indicated
ntial growth capabilities of the H-Window
edges some early mistakes in their
e hiring of Mr. Lemme as general manager
th of profit in July of this year.
distribution area to the east coast
atio doors and french doors. They
national growth in approximately
O. Mr. Lemme is concerned if the
with the need to expand the facility
IDC Minutes
8/16/90
Page 4
.
4. CONTINUED. NAWCO - they coul become land locked if the city
would sell any of the three s bdivided lots to the east of
Lots 11 & 12. now owned by t e H-Window Company. If this would
be the sitution the company !ould need to consider relocation of the entire
operation outside of Montice]lo. The suggestion was made
to have Mr. Tom Hayes draft a Right of First Refusal between the
H-Window and City of Monticello. According to Tom Hayes. the city
has two options: 1) Right or First Refusal or 2) Purchase Option.
His recommendation was a Rig t of First Refusal limited to a fixed
time. The H-Window Company oard feels it will be in a much better
position to make expansion decision in the last quarter of 1991
with the potential growth of 200-300 employment by December 1992.
Jay Morrell made a motion re
proceed to have Mr. Tom Haye
with a limited time for resp
of Monticello and the H-Wind
presented to the City Counci
enter into such an agreement.
carried unanimously. The co
anything to loose. The docu
to the council in time for t
October meeting. Don Smith
and Mr. Steve Lemme's abilit
enhances our BRE goal.
ommending the City of Monticello
draft a Right of First Refusal.
nse to notice. between the City
w Company. This document to be
for authorization of willingness to
Seconded by John McVay. the motion
ittee felt neither parties had
ent will be prepared and presented
e H-Window Board to review at their
holeheartly endorsed the company
es. This kind of endorsement
.
5. CONSIDERATION OF
Koropchak reported Monday. 0
Monte Club. however. she had
the banquet guest speaker be
united decision. The IDC re
and invite him to be our gue
topic: projected corridor g
industrial. commerical. and
Arve Grimsmo made a motion e
$75.00 for individual and $2
seconded the motion which pa
1990 economic development ex
anticipating a positive tick
tober 29. has been confirmed with the
not contacted Dr. George Karvel as
ause she was unclear of the IDC
ommended Koropchak contact Dr. Karvel
t speaker with a suggestion of .
owth as it relates to Monticello's
esidental real estate future.
tablishing the IDC banquet ticket at
.00 for spouse. Lowell Schrupp
sed unanimously. With the 1989-
ansions and programs the IDC is
t sales year.
6. CONSIDERATION OF FOLLOW-UP C MMENTS TO TAPPER'S AND REMMELE'S
RECEPTION AND FUTURE RECEPTI NS FOR THE TIRE SERVICE EQUIPMENT
COMPANY. MARTIE'S FARM SERVI E. AND THE JEFF EASTEY ENTERPRISE.
The IDC commended the city s aff on the receptions held for
Tapper's and Remmele Enginee ing. They felt the companies were
pleased with the recognition as the CEO and Presidents of the
companies were present.
.
The IDC discussed the need f
reception versus a moving in
retail/commerical. The poli
cooperative definition with
r a policy to define a ground breaking
open house and industrial versus
y to create a consistency and
he Chamber goals. The IDC recommended
.
.
.
IDC Minutes
8/16/90
Page 5
6.
CONTINUED. Koropchak Contact
reception at their facility on
the IDC to tour his operation
IDC will provide a beverage an
September.
r. Ray Schmidt for a welcome
Chelsea Road, this allowing
nd view his equipment. The
cake. Target date for
Policy criteria to be consider t a future IDe meeting.
7. CONSIDERATION OF AN UPDATE ON E S AND BROCHURE MARKETING STRATEGY.
Koropchak reiterated the Montie 110 Times article that the traffic
study conducted by Bridge Water Telephone Company met the Public
Utility Commission's criteria 0 at least 50% of the area petition
(295) exchange made at least one telephone call per month to
the metro area. The PUC has not reviewed the study nor accepted
the study at this time, however, no stumble blocks are eXpected.
Upon acceptance, the PUC and Bri ge Water Telephone Company will
establish the metro line cost wh ch will be included with each 295 ballot
mailed out. At least a majority of the returned ballots must be
in favor of extended area servic s to complete the PUC criteria
for metro telephone to Monticell .
Jeff O'Neill reported that the city will earmark the geographic
area of western and northwestern etro suburbs, identify companies
by SIC codes and for vitality to xpand. A business list may be
purchased from BDS, Inc. with app Oximately 30 teasers being
mailed per month. This to Contr 1 the time for follow-up telephone
calls and thereafter will the new brochure be mailed to interested
businesses. Arve Grimsmo suggest d that U.S.A. be added to the
next printing which is important or international recruitment
and promotion.
8.
OTHER BUSINESS.
Arve Grimsmo asked IDC members to
running for re-election as Mayor.
year's election with three fifths
vacated and at this time no current"
re-election.
ncourage Ken Maus to consider
Also mentioned was the importance
of the City Council seats being
Council member filing for
of this
The regular Chamber meeting will be held today at noon at the
American Legion with Gae Veit as gu st speaker.
9. ADJOURMENT.
The IDe meeting adjourned at 8:35
~ '<d\O~J)~,
Ollie Koropchak
IDC Executive Secretary
.
Augl.l..6t 25,1990
Cd.y 06 Monti.c.eil.o
c./o Ollie Ko~opc.hak
250 E Blt.oadwa.y
Monticello, Mn 55362
Indl.l..6~ Vevetopment Coo~dinato~,
I would Like to thank each 06 yo 60~ yoUll. .time and hnpl.Lt4 into OUll.
new m.LU. plLoject. tou .6hou1.d each be ~Y plLoud 06 YOUll. commurrJ.yie.6 bec.a.u..6e
they have ma.ny tlUng.6 to 066~. A6t~ a. thoJr.ough .6tudy, Nu:tILena Feed6 fuu
decJ..ded to co M.:Or.Uct th e..Ur.. new 6 eed
in the cay 06 lUg Lake. We neet
~
.
a 6.i.:t6 OUll. new in ev~ywa.y a.nd ~e excaed to begin c.on.6.tJr.uc.tion.
Again, I would like to thank you 601L YOUll. me; it wa..6 gJr.e.ail.y
appJtec..i.a.ted.
Re.6 pect6u.U.y
o/j1
Mike We.6tpha..t
8Jr.a.nc.h Manag ~ 06 Sai.u
.
Minnesota Department of
Trade and Economic Development
Business Promotion Division
.
\~)
'ff"~
~_ ') \.\_ r(J
900 American Center Building
150 East Kellogg Boulevard
St. Paul, Minnesota 55101-1421
SUBJECT:
August 3, 1990
All-Star City Candidates
Harry Rosefel t I U /
Di rector 11 y~
Development Resources Office
All-Star City Competition
612/296-3977
Fax: 612/296-1290
TO:
FROM:
Congratulations, your community has qual "fied as a finalist in this year's
All-Star City competition. In order to omplete the last phase of the
selection process to select the cities t be awarded, we ask you to tell us
why your community deserves to be recogn'zed as an All-Star. We have your
work-plan and annual report, and we have visited with you. But we may have
missed something or perhaps something ha happened since recertification that
you want to tell us about.
.
We are not looking for a long or complic ted discourse. The activity must
relate to your economic development goal and work plan. It must have
furthered your efforts in implementing a successful economic development
effort in your community. To help spur our thinking, we suggest you choose
from among the following successful rete tion or expansion activities,
effective recruitment and use of citizen involvement, efficient use of limited
resources, dealing with unplanned challe ges or opportunities. Questions
listed below may help you in developing our response:
1. Overview a recent accomplishment 0 innovative response to a recent
challenge.
2. Discuss an activity whose success as enhanced by volunteer
participation, an initiative that uccessfully encouraged new volunteer
participants, or any other success ul volunteer effort.
3. Identify and discuss a referral an follow through which resulted from
the BRE program.
4. Discuss a project which was effect.ve, yet implemented on a limited
budget.
.
5. Describe an innovative use of a vi eo/promotional materials which had a
quantifiable impact on a prospect r client.
In your response, please tell us the cir umstances surrounding the All-Star
activity. Why it was/is significant to our community and your economic
development efforts, what are the short- nd long-term effects, how did it
relate to your economic development work plan, who was involved, how was
support marshalled for the activity?
.P,,&,J;..'tlr- .
'\ c...r--fe-- /
~
1990
An Equal Opportunity Employer
.
.
.
All-Star City Candidates
August 3, 1990
Page 2
I
Please be brief--no more than two pages otal--and as specific and detailed as
possible. In order to be considered, we will need to receive your comments no
later than August 28. The description s ould be signed by your Star City
chairperson. If you have any questions, please call Harry Rosefelt at
612/-296-5010.
Good luck. Your work deserves to be rec gnized. Awards will be announced at
the dinner banquet, September 26 during he Annual Conference. Thanks for
taking the time from your busy schedule 0 participate.
~ ... ') \--- C\ -t)
\M-~8
Tenth Annual Star City Confe ence-September 26-28
.
Announcing the 1990
"NIGHT OF THE STARS"
video and marketing co
. .,
II.
You have heard the rumors, the whisperings. oday you get the Cacts!!!
All Star Cities are invited to submit their video and marketing materials for
competition. Entries must be received at the TED Office, by Friday, August 24.
Please, please do NOT send us your ~ copy. Awards will be presented at the banquet
on September 26.
You may submit your:
1. Video
2. Brochure
3. Fact Booklet
4. Other printed marketing piece
. Please put the name of the contact person and hisfher phone number on each
submission.
Include a one or two paragraph explanation of how the materials have been used. That
is all there is to it! Other "surprise" categories may be added at the discretion of the
judges (or the conference coordinator).
Speaking of the judges, an independent panel f judges is being assembled from the
visual communications field. Comments from udges will be passed on to you. Their
decisions will be final.
i. ;-'IT,L-c- J._~'-="~:.
'V}' :\\",
I!~i:/ .<~\\!.
1,'1 '\ \1
~'~
~I~,- -........"'-'--,;..;;...'- ~----:n
&uH
We will set up a vi wing area at the conference so that
attendees can see e entries.
Non-Star Cities may submit their materials fo review and display but not for
competition. Questions???? Call Joyce Simo at 612/297-1168. Send to:
.
MarJys
Department of Trade and
900 American C
150 East Kell
St. Paul,
iller
nomic Development
ter Building
Boulevard
55101
~l".ll.l.I.:.t.."f') ffW II" .r:'" _.lfill 1..-.1
ra e an Economic eve opment
.
.
.
September 14, 1990
Ollie Koropchak
Economic Development Director
city of Monticello
250 East Broadway
Monticello, MN 55362
Dear Ollie:
Business Promotion Division
900 American Center Building
150 East Kellogg Boulevard
St. Paul, Minnesota 55101-1421
612/296-3977
Fax; 612/296-1290
Thanks for agreeing to participat in the Nuts and Bolts session at
the Star Cities Conference. Y ur panel will be one of three
breakout sessions. Each will fo us on a specific aspect of the
Star City program from the commun ty's perspective. The title for
your session is Relocation and Ree uitment--the Choices to be Made.
I would like the participants to eave with a better understanding
of how they might approach s milar dilemmas in their home
communities.
Each panelist will do about a 1 minute presentation on his/her
community and the issues being de It with. This will leave plenty
of time for questions and partic'pation from the audience.
The other panelist is Pat Miller rom Blue Earth. There is likely
to be a third panelist. Gerry W nner will moderate.
Enclosed please find a speaker in ormation form. Please return it
as soon as you can. Thanks.
Sincerely,
C'\ ,(\,N\~
Joy~imJm
Econ6~ic Development Specialist
\.J
JS:mmf
Enclosure
,- ,
.' ~.
, . "
"~,-,-
'\ /
~
1990
An Equal Opportunity Employer
.
Industrial Devl lopment Association
. .AI Madsen reports that Maple
SPEAKER: Grove's upward trend in business
DON GRANDGENETT - "LIsten, Speak & Lead. Lea " development is continuing through
the third quarter of 1990.
PRESENTATION OVERVIEW The Meridian Business Center,
Good communication is an absolute essential in etIec 've leadership. a 17 acre development north of
Without effective leaders who can communicate, com anies and I
corporations at all levels pay a sta<7<7ering price that i readily nterstate 94, recently announced
eo that Silent Knight Security Com-
evident in various ways affecting the "profit and loss column." The pany will lease 65% of their Phase I
focus of this presentation will be on identifying and "scussing building of 49,000 sq. ft. Plans call
specific listening skills, speaking skills, and nonverb I cues that are for an additional 50,000 sq. ft.
essential to good management and to effective leader hip. building to be built next year. This
SESSION OBJECTIVE high quality business center will
To demonstrate that effective listening skills, speaki g skills, and total four buildings of 200,000
the proper use of nonverbal cues are essential in ca 'ng out today's square feet when fully complete.
management and leadership roles. Several "do's and don'ts" in good The developer is TOLD Develop-
listening and speaking, related to good management and effective ment, the developer of the Wedg.
leadership, will be presented and discussed. wood Commerce Centre.
.' . In addition, The Printer Ine of
Dr. Donald J. Grandgenett, Ed.D., 1S a sernor profes or of education MN one of Maple Grove's largest
with the Unive~sity of~ebraska at.Omah~, and a co, municatioI?- i em~loyers, recently added on a
consultant servmg busmesses and mdustries thro~ out the nation. i 58,000 sq. ft. addition to their
Dr. Grandgenett has lectured and made presentabo s throughout existing 100 000 sq ft facility
the U~ited S~~tes o~ listening skins, speaking skills nonverbal located north of Int~r;tate 94 and
behaVlor, wnting skins, and numerous other facets ,fthe commun- west ofHwy 169 in Maple Grove
ication process. His communication clinics and work hops for . .
developing the communication skills of selected indi . duals are in . In their August issue the
high demand. Minnesota Real Estate Journal had
MODERATOR: some fun with our name change
AI Madsen, Economic Development Director, City 0 initiative. Among names they
suggested were AMOEBA (Assoc.
iation for Minnesota Opportunity
Economic and Business Advance.
ment; MRED (Minnesotans Rally.
ing for Economic Development;
MOOSE (Minnesota Organization
for Opportunity and a Sound
Economy. There were several mOre.
MIDA News
Economic Development rofessionals of MN
JOINT MIDAjSTAR CITY LUNCHEON
Thursday, September 27, 1990
I
.
PLACE:
Minneapolis Metrodome Hilton; I.35W & Industrial Blvd., Mpls.
TIME:
11:30-12:00 Registration; 12:00.1:30 Luncheon
PRICE:
$20.00 (If you register for the entire Star City Conti rence, your
registration fee pays for lunch. *)
.
R.S.V.P.
If you are registering for lunch only please call the IDA office at
854-2215 before Monday, September 24. (No.shows will be billed.)
*See blue insert for Star City Conference registration inti rmation and
program.
September, 1990
Member to
Member...
In its July 23 issue, the Journal
also carried an article on Economic
Development and, in the same
issue, an article on MIDA Member
Business Development Services
and its President, Pat Pelstring.
The July 9 issue carried a
feature article on Monticello
featuring MIDA member Olive
Koropchak, Economic Develop~
_ ment Director.
[-
~: COMMlJNlTIES
· Star City Program
Celebrates 10th Anniversar
In its 10 years of existence, the Minne-
sota Star City program has grown
from a program designed mainly to
get rural communities up to snuff in eco-
nomic development, to a statewide net-
work of 100 certified cities, induding
metropolitan area communities. The pro-
gram also tracks job creation and pro-
vides assistance from economic devel-
opment professionals.
Consider Bumsville. In the mid-
1 980s, according to Bumsville Com-
munity Development Director Greg
Konat, the city was reacting to a lot of
growth pressure. After putting in the
time to certify in the Star City program
in 1983, "People didn't come and knock
on our door. We were kind of all dressed
. up with no place to go." That feeling led
the city to seriously consider dropping
out of the Star City program.
But the city decided to go through the
recertification process to get it out of the
way. The growth pattern has changed,
and Bumsville finds it needs to be proac-
tive to provide business retention and
growth for its 108 manufacturing firms.
The value of the Star City program,
Konat said, is the resource of people on
the Star City staff-their accessibility
and willingness to help. He said he
thinks the Star City program is more
responsive than in the past and that, if
there is a problem, economic develop-
ment professionals are willing to help
find a solution.
The shift in the Star City program's
response to its dients can be attributed to
several factors. One might be the pro-
gram's participation in the Urban Insti-
tutestudy. The Urban Institute, a Wash.
ington, D.C.-based consultant, selected
Minnesota as one of two states to partic-
ipate in an ongoing performance moni-
toring study. The Star City program was
. one of five programs monitored from the
Department of Trade and Economic
Development (DTED).
The Star City program is currently
being surveyed for the third time, acco d.
ing to Harry Rosefelt, director ofDe el.
opmental Resources in DTED's B i.
ness Promotion Division. The resul of
those surveys are leading to more tr in.
ing, improved computer software d
seminars for Star City members.
In response to Star Cities' cone ms
about travel budgets, the number of tar
City conferences each year will be cut
and replaced with a menu of trai ing
offered to the cities. The training ro-
grams will last between one-half day d
three days and will be offered region y.
This year, in addition to annual re.
ports on business retention, each tar
City city will receive its own custo ed
color transparency pa::ket, with i for.
mation pertaining to that city. This can
be used as Star City committee v un-
teers make presentations to comm nity
groups and city councils.
Certified city programs first rigi-
nated in the South and now se eral
states have them, according to Ros felt.
But, he said, Minnesota is the only tate
with a recertification program.
To become a Star City a comm nity
must complete tasks in the ar of
organizational development, co un.
ity analysis, planning and mark ting.
The Star City process involves a v lun-
teer committee from the comm nity
that designs a work plan to activ te a
comprehensive economic develo ent
plan for the city. That work plan the
basis for the city's marketing.
To recertify, the city must eval e the
previous year, revise its annual ork
plan and work on business reten . n.
The recertification provided a ame.
work to get the planning done, a ord.
ing to Burnsville's KonaL "We'v got a
good work plan," he said, adding "The
format got people involved."
Ten years ago the Star City pr gram
was designed to help rural comm nities
develop an economic developme t plan.
There was a strong emphasis on anu-
facturing. Now, Rosefelt said, manufac.
turing recruitment is only one-third of
what communities are doinl!. Commun.
ities also are promoting retail and down-
town development and service indus.
tries, induding tourism.
And the Minnesota Star Cities are
reaching new levels of maturity. Said
Rosefelt: "The level of sophistication is
constantly moving to a higher level."
BumsviIle Community
Development Director
Greg Konat
e.K.
Companies
Expand in
Northwest
Minnesota
Marvin Windows Inc. in Warroad,
Polaris Industries Limited Part-
nership in Roseau and Arctco
Inc. in Thief River Falls are three of
many companies that have changed the
economic landscape of northwestern
Minnesota.
"In 1982-1983 we were in bad
continued on page 24
.U1NNESOTA ENTERPRISE' FALL .90 / 23
. .J
Industrial\1
Space
, J,:' ~ j
, ':,r;\~
MinnesotaEnterprise regularly features selected buildings from),
Available Building Locator (ABL), which lists industrial pro ...""
available for sale or lease in Minnesota. The buildings on the~,'
are cataloged according to region, location, square footage, yeaf;Q'
construction, rail accessibility and former use. This is a . .. .,~,"
listing of buildings on the ABL. For further information colI'~
Terrell Towers, 612/296-4039, at the Minnesota Departm
Trade and Economic Development.
Code City
. 15 RoyallOn
285 Red Like Falls
244 Blaine
142 Cokato
136 Aitkin
56 Fairmont
263 Pierz
220 Fairfax
112 East Grand Forks
9 Blakeley
219 Windom
60 Bird Island
32 Tracy
43 Virginia
221 Fergw; Falls
158 New U1m
92 Rochester
172 Wyoming
I 65 Hallock
262 Monticello
213 Roseville
126 Hayfield
175 Sl Cloud
50 Olivia
180 Red Wing
10 MonteVideo
257 Zumbrota
214 Hopkins
116 Clara City
17 Glencoe
85 Lake City
251 Minneapolis
229 St. Paul
. 209 So. Sl Paul
Sq. Ft.
7,000
7,500
8,200
9,600
10,000
10,250
11,200
11,800
12,000
14,000
14,200
14,400
15,600
16,000
18,000
18,000
20,000
23,400
26,450
29,750
32,432
35,000
40,076
44,000
54,138
69,750
82,000
92,354
130,000
163,610
\82,500
226,080
238,553
457,000
Year
BuDt
1976 Yes
1980 Yes
1981 No
1982 Yes
1978 Yes
1977 No
1981 No
1975 No
1976 Yes
1982 Yes
1980 No
1967 No
1930 No
1973 No
1970 No
1973 No
1986 No
1985 Yes
1986 No
1980 No
1987 No
1962 No
1978 No
1958 Yes
1959 No
1%9 Yes
1%5 No
1965 No
1%9 Yes
1954 No
1976 Yes
1968 Yes
1953 Yes
1970 Yes
Rail Prior Use
Liquor Distnbution
Warehouse
Woodworking
Manufacturing
Concrete Block Man
Vegetable l'rocessing
Warehouse
Implement Repair
Chemical Storage,,,,
Pharmaceutical Manufacturing
Truck Repair ..
Garment Factory
Bottling Operation
Manufacturing
Cabinet Manufacturing
Manufacturing
Manufacturing
Distribution
Grain Storage
Manufacturing
New
Manufacturing
Manufacturing
Manufacturing
Steel Fabrication
Mohile Home Manufacturing
Manufacturing
High Tech. Manufacturing
Distribution
Manufacturing
Machine Shop
Mfg./Warehouse
Mfg./Distribution
Warehouse/Distribution
24/ MINNESOTA ENTERPRISE' FALL WI
"Polaris, with 1,100 employees, pro.
jects more than 100 new positions for
the next three years," said Roseau
Mayor Bernie Burggraf.
Arctco, 62 miles south of Roseau in
Thief River Falls, is a local competitor of
Polaris, with the manufacture of its
Arctic Cat brand snowmobiles.
Arctco was scheduled to complete a
$3.2 million share public equity offering
in August. The company has 750
employees who produce snowmobiles
and related parts, and garments and
accessories.
"The company maintains a quality
build.to.order policy to control inven-
tory levels and to keep operating costs
and working capital requirements in line
with sales," said Ann Mittelsteadt, vice
president, corporate finance department,
Piper Jaffray & Hopwood Inc. in
Minneapolis.
"In 1990, about 1.2 percent of net
sales went to engineering, research and
development," she said.
Arctco produced 37,000 units last
year and projects a 13 percent increase
in net sales for fiscal 1991.
E.dR.