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IDC Agenda 04-17-1986 . AGENDA INDUSTRIAL DEVELOPMENT C MMITTEE MEETING Thursday, April 17, 986 - 7:00AM City Hal Members; Chairperson Ron Hog1 nd, Don Smith, Shelly Johnson, Arve Grimsmo, Dale L ngwitz, Harvey Kendall, Bud Schrupp, Jay Morrell Joel Winkelman, John Bondhus, Bruce Gagnelius, Tom Eidem, and Ollie Koropchak. 1. Call To Order. 2. Approval of the March 19, 986 IDC Minutes. 3. Update on Industrial pment Banquet. 4. Airport Det Scandinavisk Pyro Industries, Industrial Freew Reports: 5. Other Business. . 6. Adj ournmen t . . Vinduscompaniet A/S Inc. y Sign . MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE LUNCHEON MEETING Wednesday, March 19, 19.6 - 12:00 Noon Oakwood Inn - The Tre Lounge Members Present: Chairperson Ron Shelly Johnson, Winkelman, Harve Ollie Koropchak. oglund, Bud Schrupp, Arve Grimsmo, ale Lungwitz, Jay Morrell, Joel Kendall, Bruce Gagnelius, and Members Absent: Tom Eidem, Don Sm.th, and John Bondhus. 1. Call to Order. Following the lunch served by called the IDC meeting Kruse, Chairperson Hoglund 2. Approval of Minutes. A motion by Arve Grimsmo, see nded by Harvey Kendall and unanimously carried. approved the Februa y 20, 1986, IDC Minutes. 3. Pyro Industries, Inc. Report. Accepted. Koropchak informed telephoned ten minutes prior Carlson said after talking wi to find another source for a . 4. Star Cit Accepted. Koropchak informed would be mailed to the State or before March 31, 1986. the Committee that Mr. Carlson had o leaving for the meeting. Mr. h Dave Peterson, he was proceeding ank loan. rt. the Committee the written report conomic Development Division on 5. Consideration of Reviewin Industrial Develo ment Freewa Sign Design. Dale Lungwitz reported Lot 6 n the Oakwood Industrial Park may be purchased and suggested the installation of the industrial sign be moved about 50 feet to the east on the City property line. A couple evergreen trees may need to be cut down. Mr. Johnson reported up to f sign and still have readibil A Star City for Your Industr Kendall motioned to use the for Your Industry" plus impr Seconded by Bud Schrupp and urteen words can be placed on a ty. He also suggested, "Monticello - " as the wording choice. Harvey ording "Monticello - A Star City ved sites - 295-2711 for the sign. assed unanimously. 6. Consideration of Ticket Dist bution for the Industrial Develo ment Banquet. Jay Morrell reminded the co ittee that following last year's banquet. Don Smith had sugge ted the possibility of using trained- inhouse personnel to sell ti kets. A commission for each ticket sold would be applied. . IDC Minutes - 3/29/86 It was the concensus of the comm ttee that a subcommittee of Ron Hoglund, Don Smith, and Olli, Koropchak meet regarding this issue. A commission of $5.00 an not more, was set as a limit I per ticket sold. Use of the pre ious accompanying letter could be determined by the subcommitte'. Mr. Lungwitz suggested that the inhouse seller should mentio "They are selling on behalf of ........., to avoid the feeling 0 disbandment by the previous seller. If the idea of inhouse elling does not formalize a special IDC meeting is to be called. Ticket distribution is targeted for April 1, 1986. . Tickets are set at $75.00 each. no bar tickets will be used, an dinner. One after dinner drink oeuvres $2.00/person, all bar d $1.75/ea., and wine $l.OO/ea. An open bar will start at 6:30PM, the bar will be closed during the is included. Prices are hore d' inks and beer $1.50/ea., top shelf The dinner will start at 7:30PM with the choice of lobster ($12.95/plate) and New York Steak ($lO.95!plat). The menu includes coffee, fresh bread, a salad, and a baked po ato. The price does not include gratuity. A montage willbe pre ented to Mayor George Latimer. Koropchak reported she had rece ved a telephone confirmation from George Latimer's office. He wi 1 be guest speaker at the IDe Banquet, May 19, 1986, at the M nte Club. The IDC guest list is to be determined by the Economi Development Director. . 7. Other Business. Dale Lungwitz requested that i right for comment on a matter be on record that he reserves the t a later date. 8. Adjournment. Concensus of the committee was to adjourn. ~, ,/ ~~ \; """ \ \f\,\ ' ~~~ Olive M. Koropchak Executive Secretary Monticello Industrial Development Committee . IDC Agenda 4/17/86 . 3. UPDATE ON INDUSTRIAL DEVEL PMENT BANQUET. A. At this time, I assume' most ticket sellers have made some initial contact ~ th potential banquet participants. On April 2, gratis tic ets and invitations were sent to: Eldon Brustuen Bob Stern Senator Betty dkins Representative Bob McEachern Representative Gerry Sikorski Dick Wright Floyd Markling Erik Fjerdingstad Odd J~rgensen Roald Starhei Please return ticket donations and named participants to Bud Schrupp. B. A Minnesota montage h s been ordered from Lynn Smith. Linda Smith has been ontacted for a floral arrangement. Wright Cable TV will e contacted for taping. C. For your information, from the Industrial M date for Latimer to s Mr. Bidwell to inform Banquet speaker. Mr. a different group of answer/question meeti received a letter (see enclosure) nagers Club. They have a confirmed eak on May 30th. I telephoned him that Latimer was also the ID Bidwell said his audience would be eople and was structured as an g. . . ~eMmerica . . . CORPORATION 218 Chelsea. Monticello. MN 55362 . 612/295-4 75 April 4, 1986 Dear Industrial Manager: In the process of findi Managers Club meeting, I wi previously scheduled. The speaker I have foun Latimor. The earliest time speak was Friday, May 30, 1 businesses in Minesota. a speaker for the Industrial have to change the date will be St. Paul's Mayor I could schedule him to 86. He will discuss small Within ten days his off ce will contact me to confirm the appointment. After con ormation, I will send another letter stating exact time, ate, place, etc. . . Sincerely, w~lI Wayne H. Bidwell vlb * SERVING THE NEWSP PER INSERT MARKET . AIRPORT SUBCO ITTEE Members present: Bill King, om Eidem, Jack Peach, Harvey Kendall, Da e Peterson, and Olive Koropchak. Member absent: City of Becke representative. The Airport Subcommittee met AM at Perkins. Preliminary d with a 3;500 foot or a 4,000 Subcommittee. Jack Peach que runway met instrument approac a 500 foot over-run on each e concensus was a 4;000 foot ru airport can handle small jets ednesday, April 2, 1986, 7:30 awings for the proposed airport oot runway was viewed by the tioned if the length of the requirements and if it includes d of the runway. The subcommittee's way plus over-run. This size (corporate planes, 8-10 passengers). subcommittee set two goal 1. Koropchak is to call innDot/Aeronautics Division, Steve Luck for an aerial -bservation of the desired location of the improved airport. (Northwest corner of Highway 25 and Sherburne County Road 81). Mr. Peach and Ms. Koropchak will meet with Mr. Luck f llowing his observation. The 2. Mr. Eidem and Mr. Kin will search out attorneys for the subcommittee to inter iew on April 11, 1986. The attorney's duties include the preparation of the joint- powers agreement (rules a d bylaws). Concensus of the subcommittee was the atto ney should be independent from other interests of the pa ticipating cities. Consideration of the recommended attorn y shall then be presented to the individual city counc.ls by the City Administrators. Monticello Council meetin; on April 14th and Big Lake Council meeting on April lth. . . IDe Agenda - 4/17/86 . 4. REPORT: Airport 1. Mr. Luck requested Ko opchak to send a preliminary aerial view of the propos d airport and site to the Aeronautics Division befo e they consider an aerial observation. Information was mailed April 11, 1986. 2. Mr. Eidem is in the p ocess of contacting attorneys, however, time did not per it interviews on April 11. . . IDC Agenda - 4/17/86 .'--~ . 4. REPORT: Det Scandinaviske Vinduscom aniet A/S. A. Det Scandinaviske Vind, scompaniet is a Norwegian company who produces the H window. The Company's first contact with Monticello wa, approximately H years ago. In February of 1986, Erik' jerdingstad, Odd J~rgensen, and Roald Starheim met with Ma or Grimsmo, Tom Eidem, and myself. At that time, the company requested confidentiality. Mr. Fjerdingstad returned to Minnesota on April 5. He has been in contact with t e Minnestoa Trade Office, Minnesota Department of Economic De e1opment, and the World Trade Office. Mr. Fjerdingstad has look d at four other cities; Lakevi11e, Maple Grove, Chaska, and elano. Upon this visit, I have met with Mr. Fjerdingstad on four different occasions. Mr. Fjerdingstad has visited he Bondhus Corporation, met with a local carpenter, Michae Bregenzer, toured Monticello and the Industrial Parks, and had dinner with some of the ID members. Information pre ared for Mr. Fjerdingstad's return trip home was a Ta Increment Proposal, the Monticello Economic Development Plan with Industrial Park maps, the Monticello video tape, a ist of manufactures for needed production equipment, and a packet prepared by the Monticello Times. .~ . The three gentlemen may r turn to Minnesota in May and would also attend our ID Banque, . The company is looking to construct a 30,000 square foot concrete wall manufacturi g facility on approximately 4-5 acres. The company would be flexible to accommodate high quality and a specialized product. They plan to make a decision in December of t eir location in Minnesota and go ahead plans. Estimated n mber of employees would be 20-25 in phase I. ---... . _.",-,._-,,~.........------ IDC Agenda - 4/17/86 . 4. REPORTS: P ro Industries, Inc. A. Mr. Tim Carlson notifi to expand in the State of the Washington decision wa State of Minnesota. I hav report. d myself of Pyro Industries' plans ashington. His main reason for the run around given by the asked Mr. Carlson for a written A. Information for the p oposed freeway sign has been given to Jeff Hoglund. I await preliminary drawings and new estimated costs. REPORT: Industrial . . . . ., -' THE ~ R VOLUnOIlARY Whl ield PELLET-BURN IIG STOVEI 4/14/8 Olive M. Koropchak Economic Development Director City of Montecello Montecello, Mn. 55362 Dear Olive; As a follow up to our phone coversa ion of the other day. I would like to take this opportunity to tank you for the consideration shown us over the past several mont s and to clarify why we have made our decision to expand in Seat le,Washington rather that in Montecello, Minnesota. I would want to emphasis all parties involved, and am of th the City of Montecello as well as t put this package together within t with. All parties involved were as received very courtiously by opinion that everyone from e State of Minnesota tried to e frame work they had to work elpfull as they could be. The main factors involved in our de ision were as follows. 1. Lack of interest from local ba k in our project. 2. Unrealistic criteria for qualification for program. note: In order to qualify for $250,000 loan we would have needed to come up with a minimum of $500,000 from other sources. If we could do that we wouldn't need the loan. 3. High cost of Workers Compensation in Minnesota. 4. High cost of Unemployment Insurance in Minnesota While there were other factors these were the main ones. The only area that I would express it would appear that the State is the same basic criteria for pro Banks are historically and p conservative in their lending poli the same criteria there abilit limited at best. I understand the mattters. There needs to be a gro at a project at its onset; jud involved of realistically availabl necessary red tape to implement th real unhappiness with, is that eally just another banker with ram qualification as a bank. obably of necessity very ies. As long as the State uses to create jobs will remain need for prudence in financial p of true experts who can look e its merits, inform those programs and work through the se programs. PYRO INDUSTRIES · 7570 MARKET PLAC DRIVE' EDEN PRAIRIE. MN 55344 . (6121829-0541 . . . It would cost our company close to to do business in Minnesota than i cost of the move.> When all the fa real off-set to this. A low inte all of your assets on the first g you are left without the ability t the need arises. In short it giv yourself. $50,000 dollars more per year Washington, <not counting the ts were looked at there was no est loan helps but by tying up arround as these programs do, raise additional capital when s you just enough rope to hang In general we feel that the progr ms the state has to offer are well intentioned, but of little or no value in the real world. They're fine for the General Motors of this world, who can float bond issues, but of little value for the small to mid-size company. ! With the help of the State of Washington we were able to raise the necessary capital needed for our present expansion. Our present plan is to possibly look at doing something in the Midwest within the next 12-24 months. We are currently growing faster than our projections indicated and hope to surpass $2,000,000 in sales this year and $5,000,000 in 1987. This would leave us with about 40 new employees in Washington and with a real need for a second plant more centraly located. With a little luck the business limate in Minnesota may improve by then. We would like to keep the door open to examine our options with you at that time. Thank you again for your courtesi~s. ~~;<-~ - Timoy R. Carlson; Executive Vic~. President Pyro Industries Inc. TRC:cc cc:Tom Eidem '~~J/ ~~~7' . U~-~ e;,. INQUIRY NO. ~ DATE t; - /6-'?? {; TERMS , JEFF HOGLUND SIGN '. Rt. 1, Box 210 ~onticellol MN 55362 DELIVERY PRICES QUOTED ARE FO.B.: c2 g Fr )( I <0 /1P~/ ~ S'~ S;f {V\ D CJ PJ..Y 000D 'PArJ vREArE'1J {/\,J00P : GOIV-S'T., (!~ ~ GeL q- C!OPY 7<oNltN BULL t=,o^-I ,41 AIr . XAJS-r fiLl-ED 8I{o/'E SITE ( WIT II l).f 4'0 bAys: m ~)CTl(j;;) c/f€; 65-r I tJCJ =- " TOPS" FORM 3448 LITHO IN U.S,A. ._,...~L_,__.__., . \....,'. , ~, '.'l: l4j \..,:." 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Dear Ollie, I want to go on public record of the letter that you wrote p site selection at the Oakwood great deal of time and conside your letter and followed prope Tom and Rick's approval. ~ 441-2800 IVER, MN 55330 hat I waS very much in favor rtaining to the recent school ndustrial Park. You took a ation prior to the writing of channels in securing both ~Jhile it is not easy to endure poli tical pressures in a small community, one must make decisions to the best of their personal and professiona knowledge. I commend you on the action that you took an trust that all things will work out for the best. Sincerely, ~?I Ct.'2/u t(j .<<... /7 c ye &.-:1 ' Jay C. Morrell Box 477 Monticello, MN. 55362 ~