IDC Agenda 08-21-1986
.
AGENDA
MONTICELLO INDUSTRIAL DEVELOPME T COMMITTEE MEETING
Thursday, August 21, 1986 - 7:00AM
City Hal
Members:
Chairperson Ron Hoglu
Arve Grimsmo, Dale Lu
Schrupp, Jay Morrell,
Bruce Gagnelius, Tom
d, Don Smith, Shelly Johnson,
gwitz, Harvey Kendall, Bud
Joel Winkelman, John Bondhus,
idem, and Olive Koropchak.
1. Call To Order.
2. Approval of the July 16, 19 6 IDC Minutes.
3. Consideration to Execute th New Minnesota Business Re-
tention and Expansion Progr m.
4. Consideration to Address th Industrial Businesses Concerns.
5. Consideration to Research, evelop, and Implement a New
Industrial Development Info mationa1 Packet.
.
6. Reports: Airport Subcommit:tee
Det Scandinaviske Vinduscompaniet A/S
Economic Deve10pent Financing Course
Industrial Contacts
7. Other Business.
8. Adjournment.
.
.
MINUTE
MONTICELLO INDUSTRIAL DEVELOPMEN
Wednesday, July 16, 19
Comfort Inn (Tree
COMMITTEE LUNCHEON
6 - 12:00 Noon
House Lounge)
MEETING
Members Present:
Chairperson
Johnson, Ha
Winkelman,
Koropchak.
Ron Hoglund, Don Smith, Shelly
vey Kendall, Bud Schrupp, Joel
ruce Gagnelius, and Ollie
Members Absent:
Arve Grimsmo
John Bondhus
Dale Lungwitz. Jay Morrell.
and Tom Eidem.
Guests: Tim Fitzgerald of IX and Ben Smith, HRA member.
1. Call to Order.
Chairperson Ron Hoglund c lIed the lCD meeting to order
at l2:25PM.
.
3. Guest S eaker: Tim Fitz raId, Vice President of 0 er-
ations. IXI Laboratories, Inc.
Mr. Fitzgerald spoke of II's history. noting the company's
400 growth increase in 19 3-84. Companies with fast growths
in short periods of time enerally do not surive long
range plans. IXI started out in the personal (home computer
software) who's market pl nged in 1984. now turning to
the Fortune 2000 companie , their market target is inform-
ation distribution. IXI mployed over 100 people at
Monticello 20 months ago nd now maintain 12 employees.
Finding it unfeasible to mploy 12 people in a 50.000
square foot structure. th y plan to utilize and/or
retrain the remaining employees for employment at the
Hopkins office which will increase the company's
communication. IXI has a 35.000 square foot facility
in Hopkins, employing abo t 80 people. Plans are to
sell the Monticello facility or rent out the entire
facility. Listing price as not been determined, however.
Mr. Fitzgerald indicated approximately one and a quarter
million dollars were invested in the Monticello facility.
Consolidated plans are estimated to be completed by
October 1st of this year.
986 IDC Minutes.
prove the June 19th IDC
y Kendall, and carried
2. A roval of the June
Bud Schrupp motioned
minutes. seconded by
unanimously.
4. Reports.
Accepted as written.
.
.
5.
Other Business.
Brief inquiries were made
brochure, expansion of th
apartment units in Montie
pat ion in the airport joi
of the progress of the IDe
Golf Coarse, number of
110, and Becker's partici-
t powers agreement.
6. Adjournment.
It was a consensus of the committee to adjourn. Meeting
adjourned.
~ \fl\
Olive M. Koropchak
Executive Secretary
Monticello Industrial
.
.
.
IDC Agenda - 8/21/86
3. CONSIDERATION TO EXECUTE THE NEW MINNESOTA BUSINESS RE-
TENTION AND EXPANSION PROG
A. REFERENCE AND BACKGROUND
One of the IDC's 1986 go ls were to insure continued
execution of an Industri l/Commerical Retention Program.
The MinnDEED has provide the state cities with guide-
lines and materials to i p1ement their new program.
Briefly, the program f10 rmat includes support by the
local government (Mayor nd myself), formation of a
task force, sponsoring 0 ganization (IDC and Chamber of
Commerce), recruitment a d training of volunteers, vol-
unteers conduct survey, nalysis of survey, and follow-up.
Materials furnished by testate include a training manuel,
slide show, brochures, coordinator's video tape, vol-
unteer's video tape, and a sample letter from the mayor,
sample of news releases, and sample thank you letters.
.
We are on a time frame
and the coding returned
November 1, 1986, inord
puted, thereafter, the
returned to the cities
gestive time for the ov
weeks (actual survey ti
differences I detect fr
1. Longer-detaile
2. Use of volunte
3. Survey not onl
and retailers.
4. Computed by th
s the surveys must be completed
to the State Department by
r, for the surveys to be com-
omputed survey results will be
or analysis. Estimated sug-
r-a1l survey program is six
e two weeks). Some of the
m the past survey are:
survey (See Supporting Data).
rs.
industries but for commerica1
state.
According to the 1985-8. business listing, Monticello
has approximately 66 se vice-related businesses and
13 industrial companies. I suggest we survey these
businesses this year and other retail/commerica1 bus-
inesses in the future 0 a yearly rotating bases.
This computes a need for 15 volunteers who would survey
five businesses, each urvey takes from one to one and
one-half hour.
.
I support the Business
because the survey inf
community and is also
ication process, howev
from the survey is not
remains useless. Ther
to state that my perce
nor are they being add
being the key to the B
Program.
Retention and Expansion Program
rmation is important to our
art of the Star City Recertif-
r, if the information gathered
acted upon, the information
fore, I take responsibility to
tion is those concerns have not
essed (Agenda Item 4). Follow-up
siness Retention and Expansion
.
IDC Agenda - 8/21/86
My plans are to have the Mayor and myself support the
program, the IDC and the Chamber of Commerce be sponsoring
organizations. As a sp nsoring organization, I ask
that you consider to vounteer one of your business
employees to donate the"r time to survey five businesses.
Volunteer's time includ s: Volunteer's training, make
survey appointments, co duct survey, and tally survey.
Volunteer's qualificati ns: Confidentiality and maturity.
I will present the prog am to the Chamber of Commerce
Board of Directors, Tue day, August 19, and to their
general meeting, Thursd y, August 21, 1986.
B. ALTERNATIVE ACTIONS.
1. Continue with previ us industrial survey and not
implement the Minnesota Business Retention and Expansion
Program Survey.
2. Discontinue either
3. Execute the Minneso
Program Survey and the
to conduct the survey.
urvey.
a Business Retention and Expansion
DC member to sponsor one volunteer
C. RECOMMENDATION.
I recommend the IDC to . xecute the Minnesota Business Re-
tention and Expansion P ogram Survey and sponsor one
volunteer to conduct fi e surveys.
.
D. SUPPORTING DATA.
New survey
Old survey
.
.
Name
Addr
Tele
Pres
.
.
1.
CITY OF MONTI CELL 0, MINNESOTA
INDUSTRY CONTACT QJESTIONNAI RE
of Company
ess
phone
ent Conditions:
Labor Needs (Quantity, Quality, Special Sk ills)
Transportation Needs/problems (Air, Rail, water, Truck, etc. )
other Needs (Supplies, Capital, etc. )
re projections:
Does your company plan to expand in 1986? Yes No
Special needs for expansion (check) :
financing transportation
labor other:
Please explain:
City and State Issues of Concern (check) :
code requirements product liability
energy availability tax policies
Workman's compensation other:
Unemployment Compensation
Comments:
please provide us with names of your suPI; liers who may wish to consider a
Minnesota location.
ease note: All information will be trea e d on a confidential basis jointly
th the Minnesota Department of Economic Ie velopment.
I
2.
3.
Futu
1.
2.
3.
4.
* PI
wi
.
IDC Agenda - 8/21/86
4. CONSIDERATION TO ADDRESS TH INDUSTRIAL BUSINESSES'
CONCERNS.
A. REFERENCE AND BACKGROUND
Last February, I visited 12
as part of the Business Ret
a summary of those visits w
Star City Recertification R
ment of FSI expansion plans
feel a great loss in not ca
retention program. However
the decision was based on t
Recent contacts with the re
expressed 1986 expansion pI
follows:
Larson Mfg. - the 198
expansion plan for Mo
two expanion plans of
locations in South Da
warehouse expansion i
next few years.
Jones Mfg. - expansio
of our 15 industrial businesses
ntion Program. From the survey
re presented to you in the
port. Since the announce-
to Big Lake, I personally
rying out the business
Mr. Peach reassures that
e availability of rail service.
aining five companies who
ns in Monticello are as
12,000 square foot warehouse
ticello was integrated in the
Larson Mfg's production
ota and Kansas. A Monticello
still anticipated in the
plans to the Figenshau building.
.
Fingerhut Corporation - Monticello expansion plans
will formally be anno nced with the next month.
,Electro Industries - the initial 1986 12,000-13,000
square foot expansion plan has been reduced to
5,760 square feet bec use of unavailable financing
for expansions with t e increase of available
vacant industrial buildings.
FSI - warehouse expa sion in Big Lake, however, a
Monticello expansion is still planned.
WebAmerica - expansi n to Mr. Bidwell meant increase
in number of employe In February he had 14 employees,
and now has 31 emplo
Several people within the
concerned about the City's
industrial development or
survey indicated four indu
visited expressed concerns
Since that time another co
code requirements for indu
Listed below are specific
.
ommunity and the IDC have become
incentives and attitudes toward
xpansion. A recap of the
tries or 1/3 of the industries
about the City code requirements.
pany has expressed the rigid
trial development or expansion.
oncerns:
IDC Agenda - 8/21/86
.
* Parking lot and land caping (Electro Industries)
* Curbing and building permit fees (Bondhus Corporation)
* Curbing and parking ot (WebAmerica)
* Parking lot (Larson fg.)
* Black top surface ve sus gravel for warehouse (FSI, 8/18/86)
*
No city incentives f
(Wrightco almost
incentives were
water-sewer pro
r business retention (Wrightco, 7/16/86)
moved to Little Falls, as no city
offered be help compensate their
lem).
*
Low water pressure i
(IXI and Larson Mfg.)
the Oakwood Industrial Park
I'm not suggesting the City code requirements be torn out,
however, I believe it's time to address these issues.
1. Are some of the City code requirements too rigid for
I-I or I-2?
.
2. Does the Committee want further evaluation of Indust-
rial codes by comp rison with other community codes?
3: Does the IDC suppo t that each company's need should
be addressed indiv'dually, and if valid, agree that
support should be iven to the company?
4.
The IDC feels the
remain neutral.
are not valid, therefore,
s.
Does the IDC
present them
Council?
he concerns are valid enough to
City Staff and/or the City
B.
RECOMMENDATION.
The recommendation is t
expressed by these Indu
reasons: One, do the c
industrial development
Second, the concerned I
advised on how their co
if they are being addre
at the IDe address the concerns
trial businesses for two main
ty code requirements hinder
nd expansion in Monticello?
dustrial Businesses should be
cerns are being addressed or
sed.
.
C, SUPPORTING DATA.
Survey results.
Monticello Industrial c de requirements available at the
meeting.
(..
The Business Retention Survey nd a letter were mailed out
in January, 1986 to fifteen 10 al industries. I visited
tweleve of those industries in February which exposed myself
to first-hand knowledge of the industrial businesses and their
leaders. Monticello should be proud of the unique products
being developed in our community and the people within those
industrial parks. A thank you letter followed with a request
of further information.
*Rainbow Enterprises
*Decorative Services
*NSP Nuclear Plant
Jones Mfg.
*Fulfillment Systems, Inc.
*Electro Industries, Inc.
*Bondhus Corporation
*WebAmerica
* Denotes industries visited
*Automatic Garage Door Company
Wrightco Products, Inc.
*Larson Mfg.
*IXI Assemblies
*Fingerhut Corporation
*Clow Stamping Company
SMA Elevator Construction Company
Each industry will receive an updated copy of the Monticello
Community Profile.
Results of survey:
.
Labor needs - 14 reported lab r needs O.K.
Transportation needs - 3 rai
8 Tru k
2 lar er airport
Other needs - 1 Capital
Need for choice of phone
1986 Company Expansion ~
syst
6
City and State Issues of Cone rn:
City Code Requirements - 4
Water Supply - 2
Workman's Compensation - 10
Unemployment Compensation - 11
Product Liability - 2
Tax Policies - 4
.
m - 1
Larson Mfg.
Jones Mfg.
WebAmerica
Fingerhut Corporation
Electro Industries
Fulfillment Systems, Inc.
.
.
.
IDC Agenda - 8/21/86
CONSIDERATION TO RESEARCH. EVELOP. AND IMPLEMENT A NEW
INDUSTRIAL DEVELOPMENT INFO MATIONAL PACKET.
s.
A. REFERENCE AND BACKGROUN .
Having reviewed the IDC's 1 86 goals. I'm pleased to announce
the only goal which has not been activated is the ID
Informational Packet. My a ologies for delaying action.
At one time. the IDC reco ended I contact Fran Voelker
at SCSU to investigate the ossibility of a student intern.
I was informed of optional ost factors: wages. travel time.
and materials. Also. was a ked for a detailed account of the
work description. I have r ceived an application from the
Mass Communications Departm nt. intern application would be for
winter quarter. I have tak n the liberty to investigate other
options. At one time. the ity Administrator mentioned the
possibility for an intern. nvestigating the possibility of
a joint-effort. the City at this time. can not justify the
need for an intern. My tho ght being. can the IDC justify
the need for an intern? At the Chamber Board meeting. I
asked for one volunteer to et up a joint committee between
the IDC and the Chamber to urther investigate our alternatives.
Linda Mielke is the Chamber volunteer. My plans are to
recruit one volunteer from he Monticello Time's. however.
I haven't contacted them. would also suggest one vol-
unteer from the IDC. I hav gathered brochures from other
communities. The committee will start with a brainstorm
session and setting of thei objectives or goals. If the
IDC objects to this plan to research. develop. and implement
the ID Informational Packet. please so advise. The committee
will present the IDC with t: eir recommendation.
.
.
.
6.
REPORTS.
A. Airport Subcommittee -
meeting was scheduled for F
due to circumstances beyond
meeting would have been amo
Creighton, and myself.
On Wednesday, August 20, th
with the present airport 0
Johnson, and Jack Beaulieu
Pat Blackhurst. This is an
the above parties of the su
State Aeronautics Division
recommended site based on a
Let me reinforce, this mean
formal approval is part of
study.
IDC Agenda - 8/21/86
n airport joint-powers agreement
iday, August IS, but was cancelled
Tom Creighton's control. This
g Bill King, Tom Eidem, Tom
airport subcommittee will meet
ers: Walt Wermerskirschen, Dean
nd airport managers: John and
informational meeting to inform
committee's plans and that the
as indicated a go-ahead on the
surface observation, only.
a surface opinion, only, and
he master airport plan or
B. Det Scandinaviske Vindu companiet A/S - On Tuesday,
August 12, 1986, Erik Fjerd."ngstad telephoned to ask if
I would contact Mr. Charles Meyer of Ferche Millwork, Inc.,
Rice, MN as he had not rece ved the price proposals from
this company. I contacted r. Meyer and Mr. Pajala of the
State Forestry Department. This being the only proposal
left to obtain inorder for them to analyize their total
production costs. Mr. Meyer will mail the price proposals
to Erik or myself this wee. I will confirm this on
Friday. Erik, thanked me for estimated cost information
on CPA's, bookkeepers, ins rance and wages. etc.
He and Mr. Starheim will b
8th or 15th, when we will
needs. Plans are that 12-
Minnesota and Monticello i
I have not visited with Ma
Mr. J~rgensen and his visi
Vinduscompaniet's producti
returning the week of September
it down and address individual
3 representatives will visit
late October. At this time,
or Grimsmo of his visit with
to one of Det Scandinaviske
n plants,
C. Economic Development F nancing - I will be attending
the first week of the fina cing training session this
Monday-Friday, August 25-2. Any new prospects that week
will be handled by Tom Eid Enclosed is the week's
agenda.
D. Project Contacts - Fl ur City
Ho es-Webway
Ge r and Broach
Me calf/Larson
Ha ry's Auto
Mo ticello Streetscape
Mi nesota Sports Federation
Mi nesota Farm Bureau