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IDC Agenda 03-09-1989 . AGENDA MONTICELLO INDUSTRIAL DE Thursday, March 9 City Hal MEMBERS: Chairperson Shelly J Dale Lungwitz, Arve Wolfsteller, Jay Mor Linda Mielke, James Pogatchnik, Dave Pet STAFF: Jeff O'Neill 1. CALL TO ORDER. ELOPMENT COMMITTEE 1989 - 7:00AM hnson, Don Smith, Lowell Schrupp, rimsmo, Mayor Ken Maus, Rick ell, Ron Hoglund, Harvey Kendall, ruger, Dennis Taylor, Dale rson, and Ollie Koropchak. 2. APPROVAL OF THE JANUARY 19 1989 IDC MINUTES. 3. CONSIDERATION OF FINAL DRA T OF THE ECONOMIC DEVELOPMENT AUTHORITY ORDINANCE AND TH GREATER MONTICELLO ENTERPRISE FUND GUIDELINES. 4. CONSIDERATION TO ADOPT A R SOLUTION AUTHORIZING CO-SIGNATURES ON ALL IDC DEPOSITS. . 5. CONSIDERATION OF INFORMATI NAL ITEMS: 1989 GOALS AND MEMBERSHIPS/ OFFICERS FOR THE IDC, THE RA, AND THE CHAMBER OF COMMERCE. 6. CONSIDERATION TO DISCUSS T E PROCEDURE TO UPGRADE OR NOT UPGRADE THE INDUSTRIAL PAR ROADS. 7. CONSIDERATION TO DISCUSS P TENTIAL INDUSTRIAL DEVELOPMENT PROSPECTS. 8. OTHER BUSINESS. 9. ADJOURNMENT. . . MINUTES MONTICELLO INDUSTRIAL DEVEL Thursday, January 19 City Hall MEMBERS PRESENT: Chairperson Don Smith, L Ken Maus, Da Taylor, Ron Koropchak. STAFF PRESENT: Jeff O'Neill 1. CALL TO ORDER. PMENT COMMITTEE 1989 - 7:00AM he11y Johnson, Vice Chairperson well Schrupp, Harvey Kendall, e Lungwitz, Linda Mielke, Dennis oglund, Arve Grimsmo, and Ollie Chairperson Shelly Johnson called the IDC meeting to order at 7:07AM. 2. APPROVAL OF THE DECEMBER 1 , 1988 IDC MINUTES. Don Smith made a motion to approve the December 15th IDC minutes, seconded by R n Hoglund and without further discussion the min tes stand approved as written. . 3. CONSIDERATION TO REVIEW TH FINAL DRAFT OF THE ORDINANCE ESTABLISHING AN EDA AND TH GREATER MONTICELLO ENTERPRISE FUND GUIDELINES/POLICIES, illD THE RECOMMENDATION OF EDA BOARD MEMBERS. . Jeff O'Neill reported to t Pat Pelstring of Business the authorization of an Ec participate as a limited p by the Minnesota legislatu EDA to participate in deve the EDA will be exposed on cash investment and/or qua as each individual transac implication on additional potential ways to utilize 1) real estate investment, 3) venture capital and/or stated the limited partner for the EDA and the City C ordinance within 21 days i attorney has a copy of the Monticello Enterprise Fund Arve Grimsmo made a motion of the EDA Ordinance and a a copy of the documents be days prior to the IDC's Fe was seconded by Lowell Sch passed unanimously. e IDC that he had contacted Mr. eve10pment Services, Inc concerning nomic Development Authority to rtner. This provision was included e to provide the opportunity for opment. As a limited partner, y to the extent of its actual anty. This protects the EDA ion would not have a direct r future transactions. Three he limited partnership are 2) equipment financing. and quity investment. Mr. O'Neill hip allows greater flexibility uncil may change the EDA so determined. The city EDA Ordinance and the Greater Policies for review and opinion. to approve the preliminary draft ter the city attorney's opinion mailed the IDC members several ruary 16th meeting. Motion upp and with no further discussion . . . 3. CONTINUED. IDC Minutes - 1/19/89 Mr. O'Neill pro ceded to inform the IDC that the Greater Monticello Enterprise Fund Guidelines are the working document for the EDA. Linda Mielke, Mr. O'Neill, and Koropchak reviewed the pol"cies and made small numerous changes in the policies. over-all guidelines for th a motion to approve the pr Guidelines with formal ado review and opinion and upo of the UDAG repayments. M Dennis Taylor and without carried unanimously. Koro will consist of seven memb members appointed by the C by the IDC for approval by committees recommendation Schwientek, Hospital Execu Certified Public Accountan or Tom St. Hilaire. HRA me appointed by the IDC. Mr. contacted by the subcommit due to CPA work ethic as t The IDC selected A1 Larson Ron Hoglund and Harvey Ken the EDA board representing recommended to the City Co Kendall, Barb Schwientek. Recommendation by consensu 4. CONSIDERATION TO ANALYZE OF THE 1989 IDC GOALS. r. O'Neill highlighted the IDC. Harvey Kendall made 1iminary draft of the GMEF tion after the city attorney's verification of the use tion was seconded by urther discussion the motion chak explained the EDA Board rs, two of which are Council unil. and five members recommended the City Council. The sub- or EDA members are Barb ive Director; Bob Mosford. ; Al Larson, HRA Chairperson ber; and two IDC members Rick Borden had been e prior to Bob Mosford but e City's Auditors he declined. because of HRA Chairperson. all volunteered to be on the IDC. EDA Board members ncil are Ron Hoglund, Harvey ob Mosford, and Al Larson. of the IDC. E 1988 IDC GOALS AND RECOMMENDATIONS Chairperson Johnson outlined a comparison of changes and additions between the 1988 and 1989 IDC Goals as recommended by the subcommittee of Don Smith, Shelly Johnson and Ollie Koropchak. Two important personal go Is of the IDC Chairperson for 1989 are G. To continue our study of sewer and water book-up charges and rates ....... and P. To continue researching the airport issue for Montice 10. The IDC reommended to visit at least ten industries 0 businesses during 1989. Don Smith made a motion to ap rove the 1989 IDC Goals as recommended and with IDC dditions, inclusive of the goals to be reviewed in July. ale Lungwitz seconded the motion and with no further discu sion the motion carried unanimously. Chairperson Johnson thank d Don Smith for his valuable input in establishing the reco ended goals. IDC Minutes - 1/19/89 . 5. CONSIDERATION OF THE IDC Y AR END FINANCIAL REPORT AND THE ESTABLISHMENT OF THE PROPO ED 1989 IDC BUDGET. Koropchak presented the 10 Financial Reports for the State Bank and Security Fi and a copy of the total co four years. Koropchak had submitted to Lowell Schrup for the portion due of the salary as a reduction alth Don Smith recommended the after Lowell Schrupp has c the EDD's salary billed th with copies of the Year End ccounts at the Wright County ancial Banking and Savings parisons for the previous shown the $15,541.93 statement by the City of Monticello Economic Development Director's ugh payment hasn't been made. DC accept the year end report ntacted Rick Wolfsteller regarding IDC to include or not include benefits. The IDC discussed the of establishing authorized co-signatures for all IDC inancial holdings on deposit to avoid any possible IDC embarrassment. Treasurer Lowell Schrupp felt comfortable with the idea as it also protects himself and he iformed the IDC that Ron Hoglund's name is currently on the accounts at both Wright County State Bank and Security F nancial however only one signature is required for transacti n. Koropchak verified with Rick Wolfsteller on his w"llingness to audit the IDC Financial Books annually, Mr. Wolfs eller agreed to do so. Ken Maus made a motion fo the IDC to draft a resolution authorizing Lowell Schrup , Ron Hoglund, and Shelly Johnson as eligible co-signatures on all IDC financial holdings on deposit with the requi ement of two signatures for any financial transaction The motion included authorizing Rick Wolfsteller to audit all IDC Financial Books annually. The motion was seconded b Linda Mielke, with discussion to have the resolution dr fted for adoption at the next IDC meeting. . 6. CONSIDERATION OF RECOMMEN ED ADDITIONAL IDC MEMBERS. Ron Hoglund reported he h IDC membership and Mr. Po however Mr. Hoglund said and confirm the decision. Don Smith reported he had membership and Mr. Peters Smith advised Koropchak t the responsibilities of a It was suggested the IDC . d spoke to Dale Pogatchnik about atchnik expressed an interest e'd take Mr. Pogatchnik to lunch spoke to Dave Peterson about IDC n also expressed interest. Mr. contact Mr. Peterson to explain IDC member and to confirm his decision. eet in the Council Chambers. IDC Minutes - 1/19/89 7. REPORTS. CUSTOM SHEET META - the last meeting between the owner and Kor pchak indicated the remaining interest of the c mpany to relocate to the Monticello Indust ial Park. The company's financial needs a e for package using TIF and the GMEF. The owner plans to apply for both with a spri g/summer construction. . CONSTRUCTION FIV - The City Council having denied the use of TIF f r the installation of the storm sewer along the asterly boundary of Outlot A which would allo Construction to construct the proposed plan an meet the requirements of city set backs, green space and parking. The Council ruled the use of TIF as undesirable because city staff views the torm sewer installation as a potential mainte ance detriment. Upon notification to the developer of the Council's decision, they requested the H meet with them and again hear their rationale or the use of TIF. This meeting was held with th developer listing eleven reasons why they felt th s was an acceptable use of TTF. The HRA approved the use of TIF for the installation of the storm sew r along Outlot A and along Lauring Lane. City staf is requesting a feasibility study be completed the efore the Council needs to authorize such a study at the next Council meeting. . GENEREUX - Koropchak requested the IDC complete confidentiality of this company and expressed the company has not contacted either Jeff O'Neill or Koropchak. BONDHUS CORPORA been contacted small summer ex jobs and the co IDC as they see use permit. SUNNY FRESH FOO with the city s to why the inte item for the co . ION - Koropchak reported she had y the company of their planned ansion which includes additional pany requests the support of the the potential need for a conditional S, INC. - Indicated disatisfaction aff response of a written request ruption of water services, a costly pany. IDC Minutes - 1/19/89 . 8. CONSIDERATION OF AN UPDATE F THE LOCAL AIRPORT. Harvey Kendall' expressed th t Jim Hollow~y indicated:-_:to him the request for the City to sno plow the airport which needs Council approval. Jeff O'N ill informed the IDC that he contacted Ron Lloyd at MNDO Aeronautic Division for the City to receive State or Federal funding the airport can't be privately owned. Consideration of selling the airport to the city at a reasonable price is foreseeable by the current owner who i dicates option of additional land to the north by a willing eller. __Mr\'Lloyd informed O'Neill that the study three years ago indicated the present location was not a good site because of the need for ~ 2200 foot clearance at both ends of a 3500 foot runway, 40- ratio, and northwestly to southeastly runway. The first need wo ld be proper zoning. Arve Grimsmo asked Harvey Kendall how m ch land NSP owned over toward Becker. Mr. Kendall wasn' sure. Chairperson Johnson expressed his concern of t e importance of an airport for continued development of t is area. Mr. O'Neill is to continue with the research for an airport expansion. 9. OTHER BUSINESS. . Arve Grimsmo informed the close their Lake Street of a northwest location of th of a major distribution ce 10. ADJOURNMENT. DC of Sears Roebucks plans to ice/store and are looking at Metro area for the construction ter. The IDC adjourned by the censensus of the committee. Members absent at the meeting were Rick Wolfsteller, Jay Morrell, and Jim Krug r. ~ \'(AC~~ Ollie Koropchak Executive Secretary . . . . JOINT POWERS AG EEMENT FOR ASSISTING CERTAIN ECONO IC DEVELOPMENT AND REDEVELOpr1ENT ACTIVITIES OF THE CI Y OF MONTICELLO, MINNESOTA This JOINT PCMERS AGREEMENT (the "Agreeme t") is entered into as of the day of ,19 ,by and b tween the City of Monticello, a municipal corporation of the State of Min esota (the "City"), the Housing and Redevelopment Authority in the City 0 Monticello (the "BRA") , and the Economic Development Authority of the cit of Monticello (the"EDA"). WITNESSETH: WHEREAS, pursuant to Minnesota statutes, ections 469.001 to 469.047, inclusive, as amended, the City has estab ished the BRA for the purpose of assisting and coordinating certain economic development and redevelopment activities of the CitYi and WHEREAS, pursuant to Minnesota Statutes, ection 469.090 to 469.108, inclusive, as amended, the City has established the EDA for the purpose of assisting and coordinating certain other conomic development and redevelopment activities of the City, including the management of the Greater Monticello Enterprise Fundi and WHEREAS, in order to promote the public ealth, welfare, and property of the citizens of the City, the City, BRA, and EDA have determined that the feasibility of assisting certain economi development and redevelopment activities of the City will be enhanced 'f the activities undertaken are jointly coordinated by the City, BRA, an EDAi and WHEREAS, pursuant to Minnesota Statutes, and EDA possess the power to enter into or cooperatively any powers common or si individually except for the territorial be exercisedi and Section 471.59, the City, BRA, n agreement to exercise jointly ilar to the City, HRA, and EDA imits within which the powers may WHEREAS, the City, HRA, and EDA desire t jointly exercise any similar powers individually granted to them by M"nnesota Statutes, Chapter 410, the Monticello City Charter, Sections 46 .001 to 469.047, inclusive, as amended, and sections 469.090 to 469.108 inclusive, as amended, which may be necessary to effectively and efficien ly assist with the implementation of certain economic development and rede elopment activities of the City; and WHEREAS, the City, HRA, and EDA desire t which they would jointly exercise common the implementation of certain economic d activities of the CitYi and by resolutio City, BRA, and EDA have approved this Ag directed their respective mayor, executi administrator and secretary to execute t City, HRA, and EDAi and enter into an agreement under or similar powers to assist with velopment and redevelopment s of the governing bodies of the eement and have authorized and e director, president, city is Agreement on behalf of the . . . Joint Powers Agreement Page 2 NOW, THEREFORE, in consideration of the utual covenants and obligations contained herein, the City, HRA and EDA, through their respective governing bodies, do hereby agree as fol ow: 1. The EDA shall serve as agent of the ity for administration and management of the Greater Monticello Enterprise Fund. 2. The EDA has the right to carry out a 1 powers and duties of the EDA as defined by State Statutes and Montie 110 City Ordinance No. 3. The HRA shall continue to carry out development and redevelopment activi State Statute 273.74 (Establishing, Plan) . nd administer economic ies of the City associated with odifying Tax Increment Financing 4. The City shall allow the transfer of up to $200,000 to the Economic Development Authority for the purpos of funding the Greater Monticello Enterprise Fund. Funds s all be transferred to the Greater Monticello Enterprise Fund increment lly as loan requests are approved by the EDA. Revenue generated by pr'ncipal and interest paYments on loans shall be managed by the EDA an become the source of future Greater Monticello Enterprise Fund 1 Except when previously pledged by th Authority, the City Council may, by resolution, require the Authority to transfer any portion of the reserves generated by activities of t e Authority that the City Council determines are not necessary or the successful operation of the Authority to the debt service fun s of the City to be used solely to reduce tax levies for bonded indeb edness of the City. 5. The City Council reserves the right t review and reject economic development and redevelopment activit'es carried out through the HRA and EDA within a 21-day period follow"ng the date of respective actions. 6. This Agreement shall be terminated up n the mutual written agreement among the City, HRA, and EDA. Upon t e termination of this agreement, property, whether real or personal, a quired hereunder shall revert to the three units of government of the ity of Monticello in proportion to said units' respective contributio to the acquisition of the property. . .._-----''"'''; . . . Joint Powers Agreement Page 3 IN WITNESS WHEREOF, the city, BRA, and E A have each caused this Agreement to be executed on its behalf by its duly authorized offices and their respective seals to be hereunto affixed, all as of the day and year first written above. C TY OF MONTICELLO, MINNESOTA B Its B Its ....."'.,... . . . ORDINANCE AME MENT NO. THE CITY COUNCIL OF MONTICELLO HEREBY 0 AINS THAT THE FOLLOWING SECTION PERTAINING TO THE ECONOMIC DEVELOPMENT A THORITY BE ADDED AS FOLLOWS: ECONOMIC DEVELO MENT AUTHORITY SECTION: 2-3-1: 2-3-2: 2-3-3: 2-3-4: 2-3-5: 2-3-6: 2-3-7: Creation Officers and Meetings Staff Functions, Powers, and Duties Limitations of Power Budget and Annual Report Modification AN ORDINANCE OF THE CITY OF MONTICELLO, IGHT COUNTY, MINNESOTA PROVIDING FOR THE CREATION OF AN ECONOMIC DEVELOPMENT UTHORITY. WHEREAS, the City Council for the City 0 Monticello (herinafter referred to as the "City") has the authority to establi h an Economic Development Authority (hereinafter referred to as the "Authori y") pursuant to Sections 469.090 to 469.108, inclusive, as amended, (the "Ac ") of the Minnesota statutes; and WHEREAS, all due process requirements fo including the public hearing, have been the establishment of the Authority, et; and t~EREAS, based on all information presen , the City Council hereby finds that the establishment of an Economic Develop ent Authority is in the best interest of the City. NOW, THEREFORE, THE COMMON COUNCIL FOR T E CITY OF MONTICELLO DO ORDAIN that an Economic Development Authority to be kno n as "the City of Monticello Economic Development Authority" is hereby establi hed pursuant to Sections 469.090 to 469.108, inclusive, as amended, of the M"nnesota Statutes which Authority shall operate according to this ordinance enac ed pursuant to the charter of the City on the following terms and conditions wh"ch shall be adopted as the By-laws of the EDA. 2-3-1: CREATION: (A) The Economic Development members to be appointed b Council. uthority shall be composed of 7 the Mayor and confirmed by the City (B) Two of the members shall terms of office of the t coincide with hisfher re the City Council. e members of the City Council. The members of the City Council shall ining term of office as a member of .-, . . . Ordinance Amendment No. Page 2 2-3-2: (C) The remalnlng five (5) me ers shall be initially appointed for terms other than the term being served by a member of the City Council. Those initially appointed, including Council Members serving on the EDA, shall serve for terms of one, two, three, four, and five years resp ctively and two members for six years. If the two Counci members appointed to the EDA have Council terms that coinci e, then their terms of service on the EDA shall also coincide. Thereafter, all commissioners shall be appointed for six-year te ms, except that any person appointed to fill a vacancy occurri g prior to the expiration of the term which his/her predecessor has been appointed, shall be appointed only for the remainder of such term. Upon the expiration of his/her term of office, t e member shall continue to serve until his/her successor is app inted. (D) All members shall serve t the pleasure of the City Council. vacancies shall be fille by appointment by the Mayor with the confirmation of the city council. (E) The City Council shall m ke available to the Authority such appropriations as it dee fit for salaries, fees, and expenses necessary in the conduct of its work. The Authority shall have authority to expend all udgeted sums so appropriated and recommend the expenditur s of other sums made available for its use from grants, gifts, nd other sources for the purposes and activities authorized by this resolution. (F) A Commissioner may be re ved by the City Council for inefficiency, neglect of duty, or misconduct in office. A Commissioner shall be re ved only after a hearing. A copy of the charges must be give to the commissioner at least 10 days before the hearing. The Commissioner must be given an opportunity to be heard 'n person or by the counsel at the hearing. When written c arges have been submitted against the Commissioner, the City C uncil may temporarily suspend the Commissioner. If the Ci y council finds that those charges have not been substantiated, he Commissioner shall be immediately reinstated. If a commis ioner is removed, a record of the proceedings together wit the charges and findings shall be filed in the office of t e city Administrator. OFFICERS AND MEETINGS: (A) The Authority shall elect a president, vice president, treasurer, assistant tr asurer, and secretary annually. A member must not serve a president and vice president at the same time. The other 0 fices may be held by the same member. The offices of the seer tary and assistant treasurer need not be held by a member. t""'. ,.. . . . Ordinance Amendment No. Page 3 2-3-3: 2-3-4: (B) The Authority shall adopt with the provisions of th Statutes, Section 469.096 proper execution and cond shall adopt by-laws and r the transaction of its bu attendance at its meeting findings, and determinati each question requiring a voting, indicating such f shall be a public record, law as non-public data. rules and precedures not inconsistent ordinance or as provided in Minnesota and as may be necessary for the ct of the business. The Authority les to govern its procedures and for iness and shall keep a record of and/or resolutions, transactions, ns showing the vote of each memeber on vote, or if absent or abstaining from ct. The records of the Authority except for those items classified by (C) The Authority shall meet t least quarterly. Special meetings may be called by the Chai person as needed. (D) All administrative proced res including contract for services, purchases of supplies, an financial transactions and duties shall be outlined in the y-laws of the Authority. STAFF: (A) The Economic Development irector shall be designated as Executive Director of the Authority. (B) Subject to limits set by available, the Authority experts as may be deemed expenses as may be necess affairs. FUNCTIONS, POWERS, AND DUTIES: he appropriations or other funds made ay employ such staff, technicians, and roper, and may incur such other ry and proper for the conduct of its (A) Except as specifically Ii ited by these provisions in Section 5 of this Ordinance, the Authority shall have the authority granted it pursuant to Min esota Statutes 469.091 - 469.107, or other law. (B) The Authority shall manage Fund (the "Fund") the purp development by making loan shall make loans to eligib serve a public purpose as Enterprise Fund Guidelines Guidelines are hereby adop BY-Laws of the EDA. No ch made without approval of t the Greater Monticello Enterprise se of which is to encourage economic to private businesses. The EDA e businesses and such loan(s) shall efined in the Greater Monticello (Fund Guidelines). The Fund ed by reference and included in the nges to the Fund Guidelines shall be e Ci ty Council. (C) The Authority may be a lim"ted partner in a partnership whose purpose is consistent with the Authority's purpose. .... . . . __..'.'Jt.". Ordinance Amendment No. page 4 2-3-5: (D) The Authority may issue g bonds when authorized by for the bonds and the ful City or such revenues as by the Authority. neral obligation bonds and revenue he City Council and pledge as security faith, credit and resources of the ay be generated by projects undertaken e with or act as agent for the federal tate public body, or an agency or nment or other public body to carry by the act or any other related aw in the area of economic development (F) The Authority may annual 1 develop and present an economic development strategy and resent it to the city Council for consideration and approva . (E) The Authority may coopera or state government or a instrumentality of a gove out the powers granted it federal, state, or local district improvement. (G) The Authority may join an official, industrial, commercial, or trade association, or oth r organization concerned with such purposes, hold reception f officials who may contribute to advancing the city and it economic development, and carry out other appropriate public relations activities to promote the City and its economic dev lopment. (H) The Authority may perform lawfully assigned to it b All City employees shall, time, furnish the Authorit available records or infor work. The Authority or it performance of official du examinations or surveys in City agents or employees, are required for the perfo carrying out the purposes LIMITATIONS OF PCWER: other duties which may be City. request and within a reasonable or its employees or agents such ation as may be required in its employees or agents may, in the ies, enter upon lands and make the same manner as other authorized nd shall have such other powers as mance of official functions in f this Resolution. (A) The Authority may not exer ise any specific powers contained in the Act, or Minn. Stat. 46 , and Minn. Stat. 469.124-469.134 without the prior approval of the City Council. (B) Except when previously pIe Council may, by resolution any portion of the reserve Authority, that the city C for the successful operati service funds of the City, levies for bonded indebted ged by the Authority, the City require the Authority to transfer generated by activities of the uncil determines are not necessary n of the Authority, to the debt to be used solely to reduce tax ess of the City. . . . Ordinance Amendment No. Page 5 2-3-6: 2-3-7: (C) All official actions of the adopted cornprehensiv controls implementing th he authority must be consistent with plan of the City and any official comprehensive plan. (D) The sale of all bonds or obligations issued or levying of taxes by the Authority shall b approved by the City Council before issuance. (E) The affairs of the Autho ity shall be limited to promoting the growth and development 0 commercial and industrial concerns in the City of Monticello. (F) The Authority must submi management practices to administrative structure and he City Council for approval. (G) The Authority shall subm t all planned activities for influencing the action 0 any other governmental agency, subdivision or body to t e City Council for approval. BUDGET AND ANNUAL REPORT: (A) The Authority shall prep re an annual budget projecting anticipated expenses and sources of revenue. The Authority must follow the budget process for City Departments as provided by the City and as implemen ed by the City Council and Mayor. (B) The Authority shall prepare an annual report describing its activities and providing n accurate statement of its financial condition. Said report s all be prepared and submitted to the City of Monticello by Mar h 1st each year. MODIFICATIONS: (A) All modifications of this ordinance must be in written form and must be adopted in accord nce with the charter of the City. Adopted this 13th day of March, 1989. Rick Wolfsteller City Administrator K n Maus, Mayor ~~- . GREATER MONTICELLO ENT RPRISE FUND GUIDELINES 250 EAST BROADWAY MONTICELLO, MINNESOTA 55362 (612) 295-2711 The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic development by supplementing co ventional financing sources available to existing and new businesses. Through this program administered by the Economic Development Authority and participating lending institution(s), loans are made to businesses to help them meet a portion of their financing needs. All loans must serve a public purpose by complying with four or more of the criteria noted in the next section. It's the responsibility of the EDA to assure that loans meet the public purpos standard and comply with all other GMEF policies as defined in this documen. Along with establishing the definition of public purpose, this docu nt is designed to outline the process involved in obtaining GMEF financing. DEFINITION OF UBLIC PURPOSE hy businesses that create new jobs. 1. To provide loans for credit 2. To provide loans for credit community tax base. hy businesses that would increase the . 3. To assist new or eXisting indus rial or non-competitive commercial businesses to improve or expand their operations. Loans will not be provided for businesses in dire t competition with existing businesses within the city of Monticello. 4. To provide loans to be used as secondary source of financing that is intended to supplement conventi na1 financing (bank financing). 5. To provide loans in situations n which a funding gap exists. 6. To provide funds for economic d velopment that could be used to assist in obtaining other funds such a Small Business Administration loans, federal and state grants, etc. THE GREATER MONTI ELLO ENTERPRISES REVOLVING LOAN FUND POLICIES I. BUSINESS ELIGIBILITY * Industrial businesses * Non-competitive commercial busi esses which enhance the community * Businesses located within the c ty of Monticello * Credit worthy existing business s * Non-credit worthy start-up busi esses with worthy feasibility . studies (Deny all historical n n-credit worthy businesses) * $10,000 loan per each job creat d, or $5,000 per every $20,000 increase in property market val ation, or $5,000 per every $20,000 increase in personal property u ed for business purposes, whichever is higher. . . . RLF Administration Page 2 II. FINANCING METHOD * COMPANION DIRECT LOAN - Exampl : Equity 20%, RLF 30%, and Bank 50% (all s ch loans may be subordinated to the primar lender(s) if requested by the primary lender(s). The RLF loan is leveraged and the lower interest rate of the RLF lowers the effect"ve interest rate on the entire projec .) * PARTICIPATION LOAN - * GUARANTEE LOANS - III. USE OF PROCEEDS * * * RLF bu s a portion of the loan (the RLF is not in a subordinate position, no collateral is requir d by the RLF, and the loan provides a lower interest rate.) RLF gu rantees a portion of the bank loan. (Perso al and real estate guarantees handled separately. ) Real property Acquisition and evelopment Real property Rehabilitation (expansion or improvements) Machinery and Equipment IV. TERMS AND CONDITIONS * LOAN SIZE - * LEVERAGING - * LOAN TERM * INTEREST RATE - * LOAN FEE - Minimum of $5,000 and Maximum not to exceed 50% of the remaining revolving loan fund balance; for example, if the remaining revolvi g loan fund balance is $50,000, the maximum loan issuance is $25,000. Minimum 60% Private/public non-GMEF Maximum 40% Public (GMEF) Personal property term not to exceed life of equipme t (generally 5 to 7 years). Real Es ate Property maximum of five year maturit amortized up to 30 years. Balloon payment at 5 years. Fixed r te of up to 2% below Minneapolis prime rate. Minimum fee of $200 but not to exceed 1% of the tot 1 loan project. Fees are to be documen ed and no duplication of fees between the len ing institution and the RLF. Loan fee may be "ncorporated into project cost. EDA retains the right to reduce or waive loan fee or port"on of loan fee. .... . . . RLF Administration Page 3 * PREPAYMENT POLICY - No pen Ity for prepayment. * DEFERRAL OF PAYMENTS - 1. Ap roval of the EDA membership by maj rity vote. 2. Ext nd the balloon if unable to refinance, verification letter from two lending institutions, subject to Board approval. * INTEREST LIMITATION ON GUARANTEED LOANS - Subject to security and/or reviewal by EDA. * ASSUMABILITY OF LOAN - None. * BUSINESS EQUITY REQUIREMENTS - Subject to type of loan, Board of Directors will de ermine case by case, analysis under normal ending guidelines. * COLLATERAL - * Liens on real property in project (Mortgage Deed) * Liens on real property in business (Mortgage Deed) * Liens on real property he d personally (Subject to Board of Directors - homestead exe pt) * Machinery and equipment 1 ens (Except equipment exempt from bankruptcy) * Personal and/or corporate guarantees (requires unlimited personal guarantees) The Greater Monticello Enterprise Fund i operated as an equal opportunity program. All applicants shall have equa access to GMEF funds regardless of race, sex, age, marital status, or other personal characteristics. ORGANI ATION The Greater Monticello Enterprise Fund i Monticello Economic Development Authorit consisting of two Council members and fi appointed by the Mayor and confirmed by held on a quarterly basis. please see t information on the structure of the orga Monticello Enterprise Fund. administered by the City of (EDA) which is a 7 member board e appointed members. EDA members are he City Council. Formal meetings are e By-Laws of the EDA for more ization that administers the Greater PARTICIPATING LENDI G INSTITUTION(S) 1. participating Lending Instituti n(s) shall be determined by the GMEF applicant. 2. participating Lending Instituti n(s) shall cooperate with the EDA and assist in carrying out the poli ies of the GMEF as approved by the City Council. ..., . . . RLF Administration Page 4 3. participating Lending Instituti n(s) shall analyze the formal application and indicate to the EDA the level at which the lending institution will participate in the finance package. LOAN APPLICATION/ADMI ISTRATIVE PROCEDURES The EDA desires to make the GMEF loan ap lication process as simple as possible. However, certain procedures m st be followed prior to EDA consideration of a loan request. Inform tion regarding the program and procedures for obtaining a loan are as f llows: City Staff Duties: The Economic Development Director, worki g in conjunction with the Assistant City Administrator, shall carry out GMEF operating procedures as approved by the EDA and Council. Staff is responsib e for assisting businesses in the loan application process and will work closel with applicants in developing the necessary information. Application Process: 1. Applicant shall complete a prel'minary Loan Application. Staff will review application for consiste cy with the policies set forth in the Greater ~1onticello Fund Guideli es. staff consideration of the preliminary loan application sh uld take approximately one week. Staff will ask applicant to con financing needs and indicate to EDA on the potential loan will lending institution. 2. If applicant gains initial supp preliminary loan application is complete a formal application. not approved by staff, the appl approval of the preliminary app scheduled meeting of the EDA. act a lending institution regarding applicant that further action by the equire indication of support from a rt from lending institution and if the approved, applicant is then asked to If the preliminary loan application is cant may request that the EDA consider ication at the next regularly 3. If preliminary loan application is approved, applicant shall complete a formal application. Formal a plication shall include a business plan which will include its man gement structure, market analysis, and financial statement. Like do cum ntation necessary for obtaining the bank loan associated with the p oposal is acceptable. Attached with each formal application is a wr tten release of information executed by the loan applicant. 4. City staff will meet with appli ant and other participating lender(s) to refine plan for financing pr posed enterprise. ~ . . . RLF Administration Page 5 5. City staff shall analyze the f rmal application and financial statements contained therein t determine if the proposed business and finance plan is viable. Staff may, at its discretion, accept the findings of a banking institut'on regarding applicant credit and financial viability of the project. After analysis is complete, City staff shall submit a written r commendation to the EDA. A decision regarding the application shal be made by the EDA within 60 days of the submittal of a completed f rmal application. 6. The EDA shall have authority t approve or deny loans; however, within twenty-one days of EDA approva , the City Council may reverse a decision by the EDA to approve a loan if it is determined by Council that such loan was issued in v'olation of GMEF guidelines. 7. Prior to issuance of an approv d loan, the City Attorney shall review all contracts, legal documents and intercreditor agreements. After such review is complete, theC'ty shall issue said loan. ORIGINAL REVOLVNG LOAN FUNDING "LETTER OF CREDIT" FROM MONTICELLO CITY COUNCIL - $200,000.00 SOURCE - City Liquor Store Fund City shall transfer needed loan amount individual loans are approved. Revenue under the control of the EDA and shall the City Council determines that reserv successful operation of the Authority. transferred to the debt service funds 0 tax levies for bonded indebtedness of t establishing the Monticello EDA). 1. Staff shall submit quarterly the status of the Monticello rom existing accounts at such time that reated through this program shall be ot be transferred to City funds unless s generated are not necessary for the If such is the case, such funds must be the City to be used solely to reduce e City (see section 5 B. Ordinance annual report detailing FUND GUIDELIN S MODIFICATION 1. At a m1n1mum, the EDA shall re iew the Fund Guidelines on an annual basis. No changes to the GMEF uidelines shall be instituted without prior approval of the City Cou cil. LOAN ADMI I STRATI ON 1. City staff shall service City to the loan, and shall assure agreement. '... oan, monitor City position with regards ity compliance with intercreditor . . . RLF Administration Page 6 2. All loan documents shall inclu e an inter creditor agreement which must include the following: A. Definition of loan default, agreements regarding notification of default. B. Agreements between lendi g institution and City regarding reproduction of pertinent information regarding the loan. 3. All loan documentation shall in lude agreements between borrower and lenders regarding release of privacy regarding the status of the loan. . . . GREATER MONTICE ...LO ENTERPRISE 250 EAST 3ROADWAY MONTICELLO, MINNESOTA PRELIMINARY APPL CATION FOR LOAN APPLICANT: FIRM OR TRADE NAME: BUSINESS ADDRESS: (# & Street) (City & State) (Zip Code) TELEPHONE: BUSINESS ( ) HrnE ( ) DATE ESTABLISHED: EMPLOYER I. D . #: SOLE PROPRIETOR CORP )RATION PARTNERSHIP MANAG :>MENT NAME TIT ...E OWNERSHIP % PROJECT LOCATION: NEW BUSINESS EXISTING B USINESS - - TOTAL PROJECT COST ESTIMATE: $ PROPOSED USES: REQUEST: LAND $ AMOUNT OF LOAN EXISTING BUILDING MATURITY & TERMS CONSTRUCTION REQUESTED MACHINERY CAPITAL APPLICANT'S WORKING CAPITAL EQUITY OTHER LOAN PURPOSE TOTAL USES $ PROPOSED BEGINNING DATE: ESTIMATED COMPLETION DATE: TITLE TO PROJECT ASSETS TO BE HELD BY: OPEB ATING ENTITY ALTER EGO - - PARTICIPATING LENDER: (Name) (Address) ( ) (Contact Person) (Telephone #) PRESENT # OF EMPLOYEES: PROJECTED # OF EMPLOYEES ADDITIONAL PROJECT INFORMATION: APPLICANT SIGNATURE: DATE SIGNED: - ,.... - - -- . . . ~ h..ot ,,\L l '''J 10 I - / & 9 -;;W PI.:."" <4'1 A()('jt.,r 7 J- D - 0 '57 - '+ RESOLUTION OF LODGE, ASSOCIATION OR OTHER SIMILAR ORGANIZATION TO: Wright County State Bank (Name of Financial Institution I P . 0 . Box 72 9 (Addressl Monticello, MN 55362 (City, State and Zip Code) Date: A. At a regular meeting of the organization named above, held on J anua present. the following officers were elected for the ensuing year or until their Name Title Lowell SchruQQ____ IDC Treasurer Sheldon Johnson IDC Chairperson Ronald Hoglund Director B. If checked, under the rules of the organization named above, the persons liste I]l: (1) Open deposit, savings and checking accounts in the name of this Organization and bind this Organization to the terms and conditions of any related account agreements. []: (2) Endorse checks, and orders forthe payment of money and withdraw funds from this Organization's accounts on deposit with this Financial Institution. This Financial Institution may charge this Organization for all checks. drafts or other such orders for the payment of money drawn on this Financial Institution, regardless of by whom Or by what means the signatures (including facsimile signatures) may have been affixed, so long as they resemble the signature specimens (including any facimile signature specimens) that appear in section A. and contain the proper number of authorized signatures for this purpose. C. D. Y: Monticello Industrial Development Committee (Name of lodge, Association or Similar Org~njzation) 250 East Broadway (Addressl Monticello, MN 55362 (City, State and Zip Codel Federall.D. Number: 41-6005385 19 , 19 ~ , at which a quorum was uccessors are properly elected and determined to be qualified: Signature Facsimile Signature (!fusedl above may' 2 a Number of authorized signatures required for this purpose, (3) Receive and send notices, including any notice regarding a change in this resolution. G Number of authorized signatures required for this purpose: ._L-, (41 Enter into a written lease for the purpose of renting and maintaining a Safe Deposit Box in this Financial Institution. Number of authorized persons required to gain access and to terminate the written lease,_L . This resolution revokes any prior resolution on file with this Financiallnstituti n and shall continue to have effect until express written notice of its rescission or modification has been received, recorded and acknowledged by this Financial Institution. E. X AFFIX ~;EAL HERE X X (Signature of Reti ing Officerl (Signatura of Ratiring Officerl (Signature of Retiring Offic H) ~ 1984 BANKERS SYSTEMS, INC., S1: CLOl'D, MN 5630' FORM OA.' 9/28/85 (Secretarv) X (Allest by a Director) x (Attest by a Directorl x . #5058000868 RESO~~TI~;g~~ k~~~~ ~SOCIATION, OR OTHER SIMILAR ORGANIZATION SfWfIfI''i fltlflS.CW. Y: MONTICELLO INDUSTRIAL DEVELOPMENT COMMIT' TO: (Name of Financial Institution) (Nama of Lodge. Association or Similar Organization) (Address) 250 East Broadway (Addressl P.O. Box 70 Monticello, MN 55362 (City. State and Zip Codel Monticello, MN 55362 (City, Slate and Zip Code) Date: Federal 1.0. Number: 41-6005385 A. At a regular meeting of the organization named above, held on Janu r 1 , 19 ~, at which a quorum was present, the following officers were elected for the ensuing year or until their successors are properly elected and determined to be qualified: Name Title Signature Facsimile Signature (Ifusedl Lowell Schrupp IDC Treasurer Sheldon Johnson IDC Chairperson Ronald Hoglund Director .8. If checked, under the rules of the organization named above, the persons lis ed above may: []: (1) Open deposit, savings and checking accounts in the name of this Number of authorized signatures required for this purpose: Organization and bind this Organization to the terms and conditions f'TV . . of any related account agreements. ~~ !3) R~ceive an.d send notices, including any notice regarding a change r\T In thiS reSolution. L.!l- (2) Endorse checks, and orders for the payment of money and withdraw funds from this Organization's accounts on deposit with this Financial Institution. This Financial Institution may charge this Organization for all checks, drafts or other such orders for the payment of money drawn on this Financial Institution, regardless of by whom or by what means the signatures (including facsimile signatures) may have been affixed, so long as they resemble the signature specimens (including any facimile signature specimens) that appear in section A. and contain the proper number of authorized signatures for this purpose. 2 [X Numberof authorized signatures required forthis purpose: ? (4) Enter into a written lease for the purpose of renting and maintaining a Safe Deposit Box in this Financial Institution. Number of authorized persons required to gain access and to terminate the written lease: ? C. D. This resolution revokes any prior resolution on file with this Financiallnstitu ion and shall continue to have effect until express written notice of its rescission or modification has been received, recorded and acknowledged by this Fina cial Institution. X (Secretary) AFFIX SEAL HERE X (Attest by . DireClorl X (Attest by a Director) X X X (Signature of Retiring Officerl (Signature of etiring Officerl (Signature of Retiring Offit ,:,rl ~ 1984 BANKERS SYSTEMS, INC.. S1: CLOUO, MN 56301 FORM OA-' 9/28/85 . '" . March 6, 1989 Barb Nelson Wright County State Bank P.O. Box 729 Monticello, MN 55362 RE: Officers/Directors author zed to manage organizational finances. Dear Barb Nelson: This letter will serve as noti e that the Monticello Industrial Development Committee has auth rized the following three officers/ director as co-signatures with a requirement of at least two signatures to appear on all In us trial Developoment Committee financial holdings with your f cility: . Lowell Schrupp IDC Treasurer Sheldon Johnson IDC Chairperson Ronald Hoglund IDC Director Please make the necessary adju tments to your records to reflect the aforementioneed changes. If y u have any questions, please contact me at 295-2711. Sincerely, Ollie Koropchak IDC Executive Secretary cc: File . MONTICELLO INDUSTRIAL DEVE OPMENT COMMITTEE 1989 MEMBERS IP . NAME Sheldon Johnson IDC Chairperson Donald Smith IDC Vice Chairperson Lowell Schrupp IDC Treasurer Kenneth Maus Monticello Mayor Rick Wolfste1ler Dale Lungwitz Arve Grimsmo . Jay Morrell Ronald Hoglund Harvey Kendall Dennis Taylor Linda Mielke Chamber Chairperson OCCUPA ION Superi tendent, Indepe dent School Distri t 11882 Editor Publisher, Montic 110 Times Owner, Golden Valley Furnit re Owner, Maus Foods Admini trator, City of Mon icello Presid nt, Wright County State Bank Owner, Peterson- Grimsm Funeral Chapel Owner, M & P Transport Agency Owner, American Family Insurance Plant ffice Manager, NSP Nu lear Plant Owner, Taylor Land Survey rs, Inc. Branch Manager, Securi y Financial Saving and Banking James Kruger Manage , National Chamber Vice Chairperson Bushin , Inc. . Ollie Koropchak IDC Executive Secretary Econom c Development Direct r, City of Montic 110 ADDRESS District Office P.O. Box 897 Monticello, MN 55362 P.O. Box 548 Monticello, MN 55362 P.O. Box 515 Monticello, MN 55362 508 Highway 25 South Monticello, MN 55362 250 East Broadway Monticello, MN 55362-9245 106 Pine Street P.O. Box 729 Monticello, MN 55362 530 West Broadway P.O. Box 815 Monticello, MN 55362 P .0. Box 477 Monticello, MN 55362 204 West 3 Street P.O. Box 291 Monticello, MN 55362 108 Hillcrest Road Monticello, MN 55362 219 West Broadway P.O. Box 179 Monticello, MN 55362 307 Pine Street P.O. Box 70 Monticello, MN 55362 P.O. Box 8 Monticello, MN 55362 250 East Broadway Monticello, MN 55362 1989 IDC Membership Page 2 . NAME Dale Pogatchnik Dave Peterson . . OCCUP ION nt, First 1 Bank Owner, Dave Peterson/ Montic 110 Ford-Mercury ADDRESS 707 Pine Street P.O. Box 239 Monticello, MN 55362 1-94 and Highway 25 South P.O. Box 68 Monticello, MN 55362 ..,. 1989 MONTICELLO INDUSTRIAL DEVELOP ENT COMMITTEE GOALS . A. To host or visit at least te new business/industry prospects during 1989. B. To continue working with ex.sting industries in Monticello. 1) To establish Business Retention Survey Teams. C. To obtain propsects from ex. sting industries/businesses. D. To attract one or more indu tries during 1989 that will be placed on the tax rolls of the Mon ice110 community. E. To revise and update promot.ona1 and advertising literature including pamphlets or broc ures, and a video .tape. . F. To create effective ways of the Labor/Market Survey Data. G. To continue our study of se rates, with the ultimate go Council appropriate changes with other communities, wit recruiting business and ind er and water hook-up charges and 1 of recommending to the City in order for Monticello to compete in the state of Minnesota, when stry. centives package that can be made r in part, to prospective businesses e will include: Housing and Redevelopment Authority) rise Fund (Economic Development Authority) er Agencies: ative Fund I. To continue a positive, coo erative working relationship between city staff and the lndustri 1 Development Committee. H. To finalize the financial i available, either in total and industries. This packa * Tax Increment Financing * State Programs * Federal Programs * Greater Monticello Enter * Loans and Grants from Ot Central Minnesota Init Others J. To continue the "Star City" program. K. To encourage a developer to construct a speculative industrial building. L. To enhance our committee's agencies that are involved 1) To host a joint meeting Mayor, City Administrat Resources, MTED. Deadl e1ationship with personnel of state ith industrial development. between the IDC officers, the City on, and Bill Coleman, Development ne April, 1989. M. To continue monthly Industr.a1 Development Committee meetings and to schedule special meeting as needed. . ". . 1989 IDC Goals Page 2 N. To continue the annual lndu trial Development Committee Banquet. 1) To continue with a fall banquet date. 2) To continue with three oca1 industrial testimonies on the program. 3) To continue with the 10 a1 industrial displays after research to determine no competi ion with Expo. o. To continue utilization of the Industrial Development 1) Recommend for appointme he sub-committee structure within ommittee. t as need be. P. To continue researching the airport issue for Monticello. Q. To hold a joint meeting bet een the local Minnesota Legislators and the IDC. R. To continue the implementat"on of extended area metro services to Monticello. s. To continue the joint meeti g between the Planning Commission, the HRA, the EDA, the IDC, nd the City Council. Deadline before June, 1989. . T. To continue a positive rela ionship with the Chamber of Commerce. u. To establish authorized co- ignatures for all Industrial Development Committee finan ial holdings on deposit and to establish an annual audit of the IDC financial books by City Administrator Rick Wolfste11er. 3/2/89 . ~ . 1989 MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY GOALS MEMBERS: Al Larson, Chairpers n Ben Smith, Vice Chai person Lowell Schrupp Everette Ellison Tom St, Hilaire Ollie Koropchak, Dir ctor/Executive Secretary GOALS: A. To establish guide ines/policies for the use of Tax Increment Fina cing. B. To research the ho'sing stock and assist in the provision of adequ te numbers and types of housing. 1. Higher quality elderly housing close to downtown with a townhou e concept. 2. Elderly housin with total full services available. 3. Rehabilitation of existing low income homes. C. To research and de ignate neighborhood substandard, blight, or deterio ating areas for redevelopment. . D. To continue the jo nt meeting between the IDC, the HRA, the EDA, he Planning Commission, and the City Council. E. To adhere to the J int Powers Agreement between the HRA, the EDA, nd the City Council. F. To consider a 1990 limited mill levy for redevelopment project and planni g activities; and/or for inform- ational and reloca ion services. 3/2/89 . ~ 'e 1989 MONTICELLO CHAMBER OF CO RCE BOARD MEMBERS CHAIRPERSON L NDA MIELKE S CURITY FINANCIAL BANKING AND SAVINGS 3 7 Pine Street P o. Box 70 M ntice11o. MN 55362 2 5-4500 VICE CHAIRPERSON ES KRUGER N TIONAL BUSHING AND PARTS COMP~~Y P O. Box 8 M ntice11o. MN 55362 2 5-2916 EXECUTIVE SECRETARY' - - {i LIE KOROPCHAIC ~--~ ,- M NTICELLO CHAMBER OF COMMERCE P O. Box 192 M ntice11o. MN 55362 2 5-2700 ~~;.'""I"~_..:_-.,.:."c_. '.',,'.-_...._...~ TREASURER C DY BENOIT M NTICELLO COMMUNITY EDUCATION P.O. Box 897 M ntice11o. MN 55362 2 5-2915 . PAST CHAIRPERSON D CARLSON F STER. FRANZEN & CARLSON AGENCY P.O. Box 188 Monticello. MN 55362 295-2614 BOARD MEMBERS JOHN MICHAELIS GO LD BROTHERS 1-94 and Highway 25 Bo 368 Mo ticello. MN 55362 29 -2911 TERM EXPIRES 12/31/89 LI DA SMITH LI TLE MOUNTAIN FLOWERS P. . Box 695 Mo tice11o. MN 55362 29 -4040 TERM EXPIRES 12/31/90 . TO MCDERMOTT DA E PETERSON'S MONTICELLO FORD - MERCURY. INC. 1- 4 and Highway 25 TERM EXPIRES Bo 68 12/31/91 Mo tice11o. MN 55362 29 -2056 CHAMBER MAILING ADDRESS: P.O. Bo 192. Monticello. MN 55362 CHAMBER OFFICE LOCATION: 250 Eas Broadway. Monticello. MN 55362 CHAMBER TELEPHONE NUMBER: (612) 2 5-2700 "" .,. . 1989 MONTICELLO CHAMBER OF CO ERCE GOALS 1. To continue and to research potential ways for greater exposure of the Chamber of ommerce and its members. 2. To research the feasibility for the establishment of an Executive Director for the ontice11o Chamber of Commerce. 3. To increase the 1989 Chambe of Commerce membership by twenty percent. 4. To establish a line of comm nication to inform Chamber members of current po1itica issues. 5. To draft and to adopt By-1a Commerce. Monticello Chamber of 6. To continue and to enhance he relationship between the Industrial Development Comm ttee and the Chamber of Commerce. 7. To continue with and/or to xpand upon current Chamber of Commerce activities: . a) Chamber/Educator Breakf st b) Expo '89 c) Chamber Recognition Ban uet d) Senior Achievement Awar s e) Monticello Riverfest Ce ebration f) Boy Scouts of America ( ontice11o Pack 270) g) Miss Monticello Pageant Committee h) Miss Monticello Float M intenance Fund i) Christmas Lighting Fund j) Chamber newsletter and rograms k) Gift to new businesses 3/2/89 . ~ . A Cargill Company Sunny Fresh Foods Egg Products 206 W. Fourth' St., Box 428 Monticello, Minnesota 55362 427-7450, 612-295-5666 January 18, 1989 Monticello City Hall 250 E Broadway Monticello, MN 55362 RE: Water Quality Dear Honorable Mayor and City Council: On Monday night, January 16, 1989, we .an unknown substance in our water in To assure product safety and quality production. (three hours early) We a were coming from our own plumbing. for several hours until we thought th began to notice flecks of he Hard Cook Department. or our customers, we ceased sumed that the particles e flushed all of our lines y were clear. upon starting our operation on Tuesda , January 17, 1989, we noticed the particles again and immed'ately ceased production. We called Monticello Public Works Dir ctor, John Simola. He tested water throughout the city and ound problems throughout the downtown area. John told me that the problem occurred due to frost heaves disturbing the old water mains in the downtown area. The long range solution he opined, Ii s in connecting our plant into a new water main, which lies sou h of our building. until the city is able to do this, it assure ourselves of clear water in ou have therefore installed five filters Liquid Processing, and three in Furth for th~se filters, installation, prod loss, and other costs due to this unr costs a facility like ours should not is necessary for us to food 'processing areas. We (one in Hard Cook, one in r processing). The cost ction interruption, product liable water supply, are expect. please advise us of your plans to pro ide us with a reliably clean water supply to assure us of th clear water we need for our operation. . '"