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IDC Agenda 06-19-1986 . AGENDA MONTICELLO INDUSTRIAL DEVELOP ENT COMMITTEE MEETING Thursday, June 19, 1 86 - 7:00AM Dino's Deli & Pizza Members: Chairperson Ron Hogl Arve Grimsmo, Dale L Schrupp, Jay Morrell Bruce Gagnelius, Tom nd, Don Smith, Shelly Johnson, ngwitz, Harvey Kendall, Bud Joel Winkelman, John Bondhus, Eidem, and Ollie Koropchak. 1. Call to Order. 2. Approval of the May 5. Consideration to Authorize Sign to the City of Montie Wrightco Products, Inc. 3. Guest Speaker: Jim 4. Financial Report and Fundraiser Banquet. of the 1986 Annual IDC of the ID Freeway 6. Reports: Airport Subcommi Det Scandinavisk; Interspan Corpor Construction Fiv IXI Laboratories, tee Vinduscompaniet A/S tion . Inc. 7. Other Business. 8. Next Scheduled IDC Meeting. 9. Adj ournment. . . MINUTE MONTICELLO INDUSTRIAL DEVELOP ENT COMMITTEE MEETING Thursday, May 15, 1 86 - 7:00AM Monticello Ci y Hall Members Present: Chairperson Ron Hoglund, Harvey Kendall, Dale Lungwitz, Don S ith, Bud Schrupp, Arve Grimsmo, Joel Winkelman, Jay Morrell, Shelly Johnson, and Ollie Koropchak Members Absent: Tom Eidem, Bruce Gagnelius, and John Bondhus. 1. Call to Order. The Monticello Industrial Dev lopment Committee meeting was called to order by Chairperso Hoglund. 2. Approval of Minutes. Harvey Kendall motioned to minutes. Seconded by Arve the April 17, 1986 IDC and passed unanimously. 3. U date and Finalization of th With the report of 101 ticket the committee briefly discussed the price 0 tickets had been reduced from the original price of $100.00. Don Smith reminded Joel Winkelman to st ess ticket sales at the Chamber noon meeting. Mayor Grimsmo stated he would arrive late at the banquet because he had to convene the Board of Review meeting at the City Hall. Harvey Kendall and Joel Winkelman volunteered to be greeters. Joel Winkelman suggested the possibility of printed progr s including a recap of the year's development activities in Monticello. Don Smith reported Lynn Smith would not be present at the banquet, Mayor Grimsmo was asked to p esent the montage. The committee suggested gratis i vitations be extended to Mr. and Mrs. Woodrow Langhau , Bruce Carlson, and Jim Luchine. Mayor Grimsmo sugg sted Erik Fjerdingstad be seated at the banquet head t ble. Smith reported he had sp ke with Jack Peach regarding expansion. Mr. Peach st ted four major reasons for the Lake expansion. 1. Rail access plus UP 2. Construction of a s not suitable for co concrete office fac 3. High volume of semi 4. No complaints of th . 4. Reports. Accepted by the committee. 5. Other Business. Don FSI Big . out of St. Paul. eel building (warehouse and shipping), struction next to the Monticello lity. truck traffic. City of Monticello or the IDC. . . . Other committee members also Mr. Peach. The general feeli anti-Big Lake. however. hoped not consider a second mortgag economic development. IDC Minutes - 5/15/86 tated they had talked with g of the IDC was not to be the City of Monticello would as a financial tool for Joel Winkelman announced the hamber of Commerce luncheon meeting at 12:00 noon. today. at the new Monticello-Big Lake Community Nursing Home. Mayor Grimsmo reported the would include the approval and the Monte Club area. PIa (Monte Hill) on line the year 6. Next Scheduled IDC Meeting. Don Smith acknowledged the co meeting. June 19. 1986 at noo Luncheon meeting. Koropchak meeting would be rescheduled. 7. Adjournment. Having been served lefsa. pro Montana. the concensus of the meeting. Meeting adjourned. ~~\< Olive M Koropchak Executive Secretary for the Monticello Industrial Develop ent Committee ...1 27. 1986 City Council agenda annexation of the Boyle Property s are to have the new water tower of 1987. flict time of the scheduled IDC with the Chamber of Commerce hanked Mr. Smith and stated the ided by the Lefsa Shack. Opheim. committee was to adjourn the &~ . . . 4. FINANCIAL REPORT AND ANALYSIS BANQUET. A. BACKGROUND AND REFERENCE. Without knowledge of the colI (See Exhibit I) the reported 105 compared to 113 in 1986. attendance at the banquet was therefore, only eleven ticket As of this time, an increased over 1985. (Note: There was prices, however, no gratuity B. ALTERNATIVE ACTION. Open for discussion are date ticket price, other means of C. STAFF RECOMMENDATION. No staff recommendation. D. SUPPORTING DATA. See Exhibit I. 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CONSIDERATION TO AUTHORIZE OWN RSHIP OF THE ID FREEWAY SIGN TO THE CITY OF MONTICELLO. A. BACKGROUND AND REFERENCE. Based on a recommendation by R n Hoglund, Dale Lungwitz, Jeff Hoglund, and Ollie Koropchak; he selective site for the ID sign installation is at Fallon Avenue and Interstate 94. Jeff Hoglund has staked the si e (appropriate footage from the property lines) and NSP an Bridgewater Telephone have located underground lines. Be ause the sign is within the City Corporate limits and is ithin the City sign ordinance, only, application for a permit is necessary. The City of Monticello approves the site ocation, however, Mr. Gary Pringle and Mr. John Franzen ecommend the ownership of said sign be tranferred to the Cit of Monticello, with the IDC maintaining maintenance respo sibilites. Two reasons for this: legalities and insuran Since the sign will be located in the right of way ( ity property), ownership of sign is desired for City insu ance coverage. The City will maintain a barricade at the e d of the paved road. The sign is completed and ready f r installation. . . B. ALTERNATIVE ACTIONS. 1. To deny authorization of Monticello, with the IDC main ibi1ities, whereby, the sign installation site. ign ownership to the City of aining maintenance respons- ubcommittee must select a new 2. To authorize sign ownersh"p to the City of Monticello, with the IDC maintaining main enance responsibilites. C. STAFF RECOMMENDATION. Staff recommends authorizatio of Monticello, with the IDC m ibi1ities. D. SUPPORTING DATA. None. . of sign ownership to the City intaining maintenance respons- . AIRPORT SUBCO Friday, May 23, 1986 City Hall ITTEE - ll:OOAM . Subcommittee members present w re Monticello Administrator Tom Eidem, Big Lake Administra or Bill King, Jack Peach, Dave Peterson, Harvey Kendall, and Ollie Koropchak. The subcommittee interviewed Mr. T m Creighton of O'C~nnor and Hannan as the law firm to deve op an Airport Joint Powers Agreement. Mr. Creighton info med the subcommittee of O'Connor and Hannan's history, policies, and expertise. Mr. Creighton has experience in drawing-up j int powers agreements such as for the Rite Cable TV which bo h Monticello and Big Lake are participates. The joint powers is an agreement between com- munities and in the case of an airport agreement this means cities will delegate away uneq al portions of their city powers. Number of votes per city may be determined by pop- ulation, property valuation, etc. Mr. Creighton stressed the importance of trust between co munities and City Councils. Estimated time to draw up an greement is about six weeks involving two or three meetin Mr. Creighton indicated he would be the contact person, owever, an associate would do the research (4-5 hours). Co t: Associate $65.00 per hour, Mr. Creighton $95.00 per hour. (Does not include cost for hearings, filing fees, courteporter fees, etc.). Estimated normal hours for an agreement preparation is 27 hours. He expressed the policy must be ellable to the public, as the most controversial issue will be the economic impact the airport will have on the surr unding communities. The subcommittee's recommenda ion is for therespactiveCity Councils (Monticello and Big ake) to each allocate $1,300.00 for the development of an air ort joint powers agreement be- tween Monticello and Big Lake preparation of agreement by Mr. Tom Creighton of O'Connor; and Hannan. The subcommittee agreed to proceed with the jo nt powers agreement without Becker's participation at thi time, since no representative from Becker has attended a su committee meeting. The sub- committee felt they have acte' in good faith, extending equal invitations to the three comm nities. Becker does have the option to join at a later dat. Plans are for the City Administrators to present the proposal to their .respective City Councils at their ear-lip. t Council-meetip.g$. . . Monday, May 27 1986 The Monticello City Council au approximately $1,300.00 for th joint powers agreement. This City of Becker joins in the pr horized the expenditure of preparation of an airport ost would be reduced if the cess. Becker's Mayor Mike Doering wo 1d like myself to attend Becker's City Council meeting, Tuesday, June 17, 1986, PM, to advise and respond to quest.ons of the Council. Mayor Doering expressed the Council as concerns of the recommended airport site. The Monticello nd Big Lake City Staff sees the issue at present, is wheth r to participate or not part- icipate in the development of the joint powers agreement, not the issue of site selection. herefore, staff invites Mayor Doering to meet on staff's ti e for inquiry. Wednesday, J Mr. Steve Luck and Mr. Ron Ll made an aerial observation of This site is recommended by t preliminary observation is th Mr. Lloyd will send a confirm in approximately three weeks. 1986 yd, MinnDOT/Aeronautic Division, the recommended airport site. e Airport Subcommittee. Their t the site looks very workable. tion letter on his observation Big Lake Administrator Bill K ng states the participation and allocation of monies ($1,300. 0) for the airport joint powers agreement appears on Big Lake s Council Agenda, Monday, June 16, 1986. . . . / --<' ",.:," '.~':~.':'~':',,")::]~'''~~\.. ......,..~.. ..=.,.... ..:...... '. ,,,....;.Qd.i ':...."., ,- . _"::,,,:..~t~' Phone (612) 295..2711 Metro (61 2) 333-5739 Mayor: Arve Grimsmo City Council: Dan Blonigen Fran Fair William Fair Jack Maxwell Administrator: Tom Eidem Finance Director: Rick Woifsteller Public Works: John Simola Planning & Zoning: Gary Anderson . . 250 East Broadway Monticello. Minnesota 55362-9245 Cil'J 0/ monticello MONTICELL , MN 55362-9245 June 13, 1986 Mayor Michael Doering ,Becker city Hall 215 Sherburne Avenue Becker, MN 55308 Re: participation in the Air ort Joint Powers Agreement Dear Mayor Doering: The formation of the Airport the Monticello Industrial Dev The subcommittee organized an 1985. Invitations were exten and to Administrator Bill Kin develop a common goal to impr between Big Lake and Monticel be asked to participate and c of an airport joint powers ag The Airport Subcommittee has The first meeting, set their met with representatives fro third meeting, toured the Mo the fourth meeting, decided purpose of preparation of an and decided to ask the MN/DO aerial observation of the re fifth meeting, hired the OlC an airport joint powers agre The Airport subcommittee, th city staff at Monticello fee extending equal invitations most unfortunate that you, have not been able to attend the process, the subcommitte this three to five year proj mayor may not read to allo later date. If the agreeme by other communities, a lat Mayor Doering, I hope the c efforts previously set fort include Becker in the initi ubcommittee was the result of lopment Committee's 1986 goals. held their first meeting November 1, ed to Mr. Tom Scearcy, Becker, , Big Lake, with the intent to ve the existing airport on Highway 25 o. Communities interested would ntribute toward the preparation eement. et on five different occasions. bjectives; the second meeting; MN/DOT Aeronautics Division; the a, New Ulm, and St. James Airports; o interview legal firms for the airport joint powers agreement Aeronautics Division for a preliminary ommended airport site; and the nnor and Hannan Law Firm to prepare ment for an estimated cost of $2,565.00. city staff at Big Lake, and the they have acted in good faith, o the three communities. It's . Scearcy, or another Becker delegate the meetings. Eight months into will proceed without delay on ct. The joint powers agreement for additional participation at a t allows for late participation assessment will be charged. mmunity of Becker understands the by the Airport Subcommittee to 1 airport joint powers agreement. . Mayor Michael Doering June 13, 1 986 Page 2 After the joint powers agreemen is prepared, I will send the .City of Becker a copy. May the cities of Becker, Big Lake, and Monticello continue to crea e a positive business climate for the area. If you have any uestions, please call me at Metro 333-5739 or (612) 295-2711. ~ ~.\<~~G Sincerely, Olive M. Koropchak Economic Development Director cc: T. Eidem B. King file \,/"'" . . . Det Scandinaviske Vinduscom ani t A/S Mr. Erik Fjerdingstad telephone Tuesday, June 10, 1986, and confirmed his and Mr. Odd J~rge sen's arrival time to Minnesota on Saturday, June 21. I have made motel reservations for them through Sunday, June 29. Their plans are to be in Monticello on Monday, June 23. An appointment at Bondus Corporation has been arranged for Mr. J~rgensen and a tour of the NSP Nuclear Plant will be arranged next week when Harvey Kendall returns from vacation. Interspan Corporation Mr. Woodrow Langhaug delivered some company information Friday, June 6. Due to a short notice of arrival, we toured the Industrial Park and viewed ava"lab1e buildings from the exterior, only. Mr. Langhaug is interested in leasing a part of the IXI facility. Interspan Corporation is in the process of seeking financial support. . Construction Five Sometime ago, the HRA and the ity Council approved the Tax Increment Finance Plan for Tax Increment District #5. On Wednesday, June 25, 1986, Mr. ob Deike of Holmes & Graven will meet with the city staffnd the developer to start preparation on the development agreement between the Monticello HRA and Construction Five. Co struction Five plans to build a 24-unit apartment complex an a 30-unit apartment complex on Block 1, Construction Fiveddition. The District was created not to bond for the pu 'chase of land but to bond for the street construction, sanit ry sewer and watermain, and storm sewer. The District has been certified by the County. IXI Laboratories, Inc. On two previous occasions, I ha e met with Mr. Tim Fitzgerald, newly appointed Vice President of Operations for IXL Mr. Fitzgerald has informed me of lXI's plan to consolidate their entire Monticello operations to the home office in Hopkins. Target date for the completed consolidation is Fall '86. Tentative plans call for an equipment auction to be held the end of July at the Monticello plant. At present, approximately twelve employees remain on staff at the Monticello facility. As Economic Development Director, I will work with IXI to fill their 50,000 square foot b i1ding. The building is available for purchase or lease. Presently, Mr. Fitzgerald has provided me with the bui1di g description but I haven't received a purchase price nor lease agreement or options. . On the advise of Mr. Bob Deike of Holmes & Graven, the cert- ificate of completion for Lot 7, Block 3, Oakwood Industrial Park should be authorized if warranted. Second, the proper channels should be taken to ins re that the proposed tax increment will be generated and collected over the life span of the District. These proced 'res are in process. I have . extended an invitation to Mr. itzgera1d to attend the IDC meeting in July. 8. Next Scheduled IDC Meeting Although, the IDC meetings are out of sequence and assuming the committee is interested in having Tim Fitzgerald of IXI as their July guest, my sugges ton is for a Wednesday, July 16, 1986 Luncheon Meeting. P1 ce to be announced. Please respond at the meeting. . . . Statement '~ fIJilGH1NM Mont!cal!o, Minn 56382 .,.,.:, ';'~,~.2"11 To Terms Please detach and retu n upper portion with your remittance. $ . WitsonJones . G.RAVI..INE FORM ~4_S10 2.PART @ 1983. PRINTED IN u.s..... Your Check is Your Receipt . 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 p1 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 tice110 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 need with the next month. Electro Industries - he initial 1986 12,000-13,000 square foot expansion plan has been reduced to 5,760 square feet bee use of unavailable financing for expansions with t e increase of available vacant industrial buildings. FSI - warehouse expansion in Big Lake, however, a Monticello expansion is still planned. WebAmerica - expansio to Mr. Bidwell meant increase in number of employees. In February he had 14 employees, and now has 31 employees. Several people within the community and the IDC have become concerned about the City's incentives and attitudes toward industrial development or expansion. A recap of the survey indicated four industries or 1/3 of the industries visited expressed concerns about the City code requirements. Since that time another co pany has expressed the rigid code requirements for indu trial development or expansion. Listed below are specific oncerns: . . IDC Agenda - 8/21/86 * Parking lot and land caping (Electro Industries) * Curbing and building permit fees (Bondhus Corporation) * Curbing and parking lot (WebAmerica) * Parking lot (Larson fg. ) * Black top surface versus gravel for warehouse (FSI, 8/18/86) * No city incentives vor business retention (Wrightco, 7/16/86) (Wrightco almost moved to Little Falls, as no city incentives wer offered be help compensate their water-sewer prblem). * Low water pressure 'n the Oakwood Industrial Park (IXI and Larson Mfg.) I'm not suggesting the City code requirements be torn out, however, I believe it's tim to address these issues. 1. Are some of the Ci y code requirements too rigid for I-lor 1-2? . 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. 5. Does the IDC feel present them to th Council? 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 are not valid, therefore, he concerns are valid enough to City Staff and/or the City at the IDC 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 and a letter were mailed out in January, 1986 to fifteen local industries. I visited tweleve of those industries i February which exposed myself to first-hand knowledge of th industrial businesses and their leaders. Monticello should b proud of the unique products being developed in our commun'ty and the people within those industrial parks. A thank yo letter followed with a request of further information. *Rainbow Enterprises *Decorative Services *NSP Nuclear Plant Jones Mfg. *Fu1fillment Systems, lnc *Electro Industries, Inc. *Bondhus Corporation *WebAmerica *Automatic Garage Door Company Wrightco Products, Inc. *Larson Mfg. *IXI Assemblies *Fingerhut Corporation *Clow Stamping Company SMA Elevator Construction Company * Denotes industries visited Each industry will receive an updated copy of the Monticello Community Profile. .~ Results of survey: Labor needs - 14 reported Transportation needs - 3 8 2 r needs O.K. Other needs - 1 Capital Need for choice of phone 1986 Company Expansion - er airport m - 1 Larson Mfg. Jones Mfg. WebAmerica Fingerhut Corporation Electro Industries Fulfillment Systems, Inc. City and State Issues of Con ern: City Code Requirements - 4 Water Supply - 2 Workman's Compensation - 10 Unemployment Compensation - 1 Product Liability - 2 Tax Policies - 4 ... . old To ONTICELLO 28793 FFICE PRODUCTS Complete Office Supplies ~ Hon Steel Furniture Monticello, Minn. 55362 (612) 295-3121 II' ~ 7191:b C3 hud) . OMON"TICELLO PIltII"fTIN~1 MO"'lTICKLL.01 M'N"". 55362. . . STATEMENT WOO:CTTPE MINNESOTA Lynn R. Smith 116 E. River St. - P. O. Box 548 Monticello. MN 55362 (612) 295-2151 II. ~.b -7 .. .~~~p- . . Monti ello Industrial Develop ent Committee 250 East Boadway Monticello, Minn sota 55362 Phone (612) 95-2711 June 3, 1986 Mr. Jim Ridgeway % Wrightco Products, Inc. P.O. Box 683 Monticello, MN 55362 Dear Mr. Ridgeway: This letter is a confirmation f r the scheduled Thursday, June 19, 1986 Industrial Deve10 ment Committee meeting. We will begin at 7:00 AM with a gratis breakfast at Dino's. The committee extends the invit tion to you as part of their Business Retention Program. Their thoughts are for you to share with them changes and fut re plans of Wrightco, and for you to express your's and W ightco's concerns regarding the business climate of Monticello. Allow approximately 15 minutes, also the committee ay have some questions. Jim. thank you for accepting the invitation and for accom- modating the time change of this meeting. See you on the 19th of June, 7:00 AM. If you h ve any questions, please call me at 295-2711. Sincerely, (S~\!..tkk.l \~\\ '\(,C'l.~(< ".(~', t~:,';",,:e. ,.} '<~ Olive M. Koropchak Executive Secretary Industrial Development Committee cc: file smnRr uu FOR ' . leDID.,e C DlYIlD'.UT . May 15, 1986 Dear Industrial Manager: About one month ago I invit Managers Club Meeting. At the t I did not realize that May 30, w Day and just after the celabrate Since that time many of the have made other plans for that regretfully have to cancel the m Club. The meeting was scheduled 9:00 a.m. Please cancel that da . to another Industrial scheduling the meeting s the Traditional Memorial Memorial Day. people invited to the meeting emorial week, therefore I eting of the Industrial Managers for Friday, May 30, 1986 at e on your calendar for the meeting. I hope to talk with all the managers in this area again to talk about some of the things we discussed at our first meeting. Sincerely, ()luru-W ;:]~~ Wayne H. Bidwell, Plant Manager of Web America vlb .