IDC Agenda 07-21-1992
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AGEN A
MARKETING S BCOMMITTEE
FOR T E
MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE
Tuesday, July 21, 1992 - 8:00 AM
City all
MEMBERS: Don Smith, Dave Peterson, Mary Micke, John McVay, and
Merrlyn Seefeldt.
STAFF:
Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO REVIEW VARIOUS JOURNALS FOR POTENTIAL LOCAL
ECONOMIC DEVELOPMENT ADVERTI EMENTS.
3. CONSIDERATION TO INVITE TWO TO THREE JOURNAL REPRESENTATIVES
TO AN UPCOMING DESIGNATED MA KETING MEETING FOR PRESENTATION
OF OPTIONS WITHIN IDC MARKETt G BUDGET.
4. OTHER BUSINESS.
5. ADJOURNMENT.
4It AGEN A
MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE
Thursday, July 16, 1992 - 7:00 AM
City H 11
MEMBERS: Chairperson Shelley John on, Vice Chairperson Don Smith,
Treasurer Ron Hoglund, L well Schrupp, Arve Grimsmo, Jay
Morrell, Harvey Kendall, ennis Taylor, Linda Mielke, Ken
Maus, John McVay, Dave eterson, Tom Pogatchnik, Kevin
Doty, Merr1yn Seefeldt, Steve Lemme, Cyndie Johnson,
Candy Benoit, and Mary M cke.
STAFF: Rick Wo1fste11er, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE UNE 18, 1992 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT.
4. CONSIDERATION TO ACCEPT IDC EMBERSHIP RESIGNATION FROM TOM
POGATCHNIK AND CONSIDER RE LACEMENT RECOMMMENDATION, TOM
LINDQUIST.
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5.
CONSIDERATION OF PUBLIC HEARl G NOTICE DATE FOR THE MINNESOTA
ECONOMIC RECOVERY GRANT APPLI ATION FOR AROPLAX CORPORATION.
6. CONSIDERATION OF PROSPECT UPD TE:
a) Suburban Machine & Manuf cturing, Inc.
b) Q-A Thermal Processing, nc.
e) Agricultural Product Man facturer
d) Steinwa11, Inc.
e) Sporting Goods Distribut on
7. CONSIDERATION TO DISCUSS POTE TIAL GROUNDBREAKING RECEPTIONS
AND BRE EXPANSION RECEPTIONS.
8. CONSIDERATION OF A FOLLOW-UP ON THE DEVELOPMENT OF A FARM
CREDIT PRELIMINARY PLAT PLANS.
9. CONSIDERATION OF SUBCOMMITTEE REPORTS.
a) BRE Subcommittee Reports.
b) Marketing Subcommittee r minder - Meeting Tuesday, July
21, 8:00 AM, City Hall.
c) Local BRE Subcommittee - continued from June meeting.
10. OTHER BUSINESS.
a) Copy of Letter from DTED
b) Chamber meeting at noon.
4It 11. ADJOURNMENT.
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MINU ES
MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE
Thursday, June 18, 1992 - 7:00 AM
City all
MEMBERS PRESENT:
Vice Presidet Don Smith, Treasurer Ron
Hoglund, Arve Grimsmo, Harvey Kendall, Dennis
Taylor, Ken aus, John McVay, Kevin Doty,
Cyndie Johnso , Candy Benoit, and Mary Micke.
MEMBERS ABSENT:
Shelley Johns n, Lowell Schrupp, Jay Morrell,
Linda Mielke, Dave Peterson, Tom Pogatchnik,
Merrlyn Seefeldt, and Steve Lemme.
STAFF PRESENT:
Ollie Koropcha .
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
In the absence of Chairperson Shelley Johnson, Vice
Chairperson Don Smith called he IDC meeting to order at 7:05
AM.
2 .
CONSIDERATION TO APPROVE THE
1992 IDC MINUTES.
Harvey Kendall made a motion 0 approve the May 21, 1992 IDC
minutes, seconded by John cVay, wi th no corrections or
additions the minutes were ap roved as written.
3.
CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT.
Treasurer Ron Hoglund reported a Security Financial balance of
$2,533.58 and a Wright County balance of $486.17 for a total
balance of $3,019.75. Mary M cke made a motion to accept the
IDC financial report, second d by Harvey Kendall, without
further discussion the financial report was accepted and filed
as given.
4.
CONSIDERATION OF PROSPECT UPD TE:
a) Aroplax Corporation - Kor pchak reported that Aroplax has
received their bank committment and next Tuesday, June
23; Mr. Schoen, Mr. Kirsc t, and Koropchak will meet with
the Minnesota Departme t of Community Development
regarding the Economic R covery Grant application. The
financial package includ s six sources of funds.
b) Suburban Machine and Ma ufacturing, Inc. - Originally
this company contacted K ropchak's office last fall and
on June 8, Mr. Kendall, Mr. Hog 1 und, and Koropchak
visi ted the Rogers faci i ty upon their request. The
company owner's reside in Monticello and the company does
general machining and h s a product line. Customers
include John Deere, Con olidated Freightway, etc. On
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IDC MINUTES
6-18-92
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c)
June 10, Mr. Kirscht and Koropchak revisited the company
to further discuss finan ial options. The company has a
buyer on their existin property and Koropchak has
received a letter of committment for a Monticello
location. The compan wishes to occupy their new
facility by the end of ctober. The new facility size
would be 11,000 sq ft 8,000 sq ft manufacturing and
3,000 sq ft off ice wi h an unf inished 3,000 sq ft
mezzinine) . Existing e' ployment is 15 full time and
projects 8 new jobs with~n the next two years, wage range
from $10.00 - $13.00. hey are interested in the 3-4
acres of the Farm Credit property to the east of Remmele
and the Fallon Avenue ea ement. Vice Chairperson Smith
thanked Harvey and Ron f r their support and time as part
of the Prospect Committe
Agricultural Product Ma ufacturer (NSP) - The company
president, Mr. Stockwel , met wi th John McVay, Kevin
Doty, Jeff O'Neill, and Koropchak on June 16. The IDC
was informed that the co pany increased its project size
from a 20,000 to a 30,00: sq ft metal facility and from
5 to 10-15 acres. The company will employ 10 to 15
unski lIed workers (seas nal), wage range of $5.00 to
$7.50. The production pr cess would include the purchase
of cornstalks from farme 5, the stalks would be ground-up
in a grinder located ou side, dried in a dryer inside,
and baled for storage 0 delivery to horse stables for
use as horse bedding. ith the potential of a partner
the used horse bedding w uld be recycled into a composed
fertilizer and sold to farmers or commercially. The
compose would be contai ed in silos of durable plastic
and stored outside. Oth r markets may be turkey or pig
bedding. The company ha been in business for 10 years
and operated at one time in Cannon Falls, unfortunately,
having the wrong type of dryer the facility burnt. The
company does not consid r this as a start-up or as a
testing plant but as a first plant. Of the company's
original 65 shareholders, 88% remain. No clear financial
funding needs nor potenti:al equi ty ingestion was def ined.
Koropchak informed the IDC that Mr. O'Neill briefly
addressed the screening, outdoor storage, landscaping,
hard-surfacing, and cu bing requirements for Heavy
Industrial (1-2) zonin at the meeting. After the
meeting, Oakwood Industrial Park 1-2 lots along Dundas
Road were marketed. Mr. tockwell asked if the communi ty
was interested in the co pany and if 60 to set up another
meeting, Koropchak asked for direction from the IDC
members.
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IDC MINUTES
6-18-92
The IDC had various opinions ranging was worth
proceeding, just fishing, encourage a county development,
don't waste much time. oncerns were that the nature of
the business maybe dirty, noisy, and expell odors which
may discourage existing eighborhood businesses to
expand. Also, the wisdo of local dollars invested into
a project with few jobs at low wage scale was noted by
Koropchak.
Modern Molding, Inc. Koropchak reported that Mr.
Portmann, President of M dern Molding, has informed her
of the company's decisi n to locate in Delano. Mr.
Portmann said all marke ing aspects of Monticello were
very positive; however, property became available in
Delano which means the ompany officials can remain in
their homes in Long La' e and Minnetonka and have a
shorter distance to com ute. Although, papers haven't
been signed, Mr. Portman thanked the City of Monticello
and the Prospect Commi t ee for its time and support.
Kevin Doty noted the comp ny had expressed concern to the
availability of the work force with the proposed Aroplax
Corporation, a competito . Koropchak requested a letter
of final site location c mmitment for record and filing.
Steinwall, Inc. - Koropc: ak reported that Ms. Steinwall
and herself met on June 4 the meeting was set to discuss
and explain financial 0 tions and tour the industrial
sites. At this point, M . Steinwall expressed the most
interest in the Farm Cr di t property to the north of
Chelsea for freeway expo ure. Having received a copy of
Steinwall 's marketing bro hure and newsletters, Koropchak
distributed them for IDC embers to view. The IDC agreed
with Koropchak to active y pursue this company, as the
quality and nature of the business meets the community's
objectives. A developm nt project is anticipated for
1993.
Q-A Thermo Process, - On June 10, Bill King and
Lenny Kirscht of BDS, Inc and two of the four principles
of this start-up compa y met with Jeff 0' Neill, Al
Larson, and Koropchak. The meeting purpose was to
introduce the principles 0 the community and to discuss
the nature of the busi ess. The company provides a
service, a commercial h at-treating process for metal
products. The Shingobee re-Plan has been marketed, the
project would employ 10- :5 within the first year or two
with an estimated equity f approximately $100,000. The
group liked Monticello and the pre-plan site, no
financial package was d tailed. Mr. O'Neill and Mr.
Larson believed the proj ct had merit to proceed. BDS
will contact the city re arding follow-up.
d)
e)
f)
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IDC MINUTES
6-18-.92
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BRE
a)
b)
Northfork Snacks, Inc. This project lead came from
Greg Dahlheimer. Mr. R"chard Forster, owner, said the
turkey jerky food produ t has been tested and a patent
obtained. The company s looking for 3,000 to 6,000 sq
ft of space to lease or marketing, production, and
distribution. The camp ny has applied for a grant from
ARI, a state rural agric ltural program. Leaseable space
contacts of Jay Morrell and Andy Anderson were provided
and local financial options discussed.
Joe Furman, CPA - This old Spring individual contacted
the Ci ty Administrator's Office regarding a proposed
3,500 sq ft project. After two meeting cancellations,
Koropchak said she met wi th Mr. Furman who wanted a
detailed outline on he. to calculate tax increment,
information about theMEF, and inquired of the Farm
Credit Property. Korop hak asked for a description of
the project and its bus ness and product, however, Mr.
Furman said he had to eave. Koropchak uncomfortable
with the meeting, asked he IDC if the name was familiar
to them. Some IDC membe s had a faint recall of the name
and recommended Koropch k to be on alert and not waste
any more time.
John Froehling - Needed 5,000 sq ft feet the next week.
Bob Bliss - Wanted information on metro phone status.
Both j & k were mailed M nticello marketing information
and leaseable space cont ct phone numbers were provided.
UPDATE:
Remmele Engineering - K ropchak reported all was going
well on the 10,000 sq ft expansion wi th completion
anticipated for October.
Sunny Fresh Foods, Inc. - Koropchak informed the IDC that
Sunny Fresh was plan ing a two-day Zero Defect
Celebration for company mployees on Friday and Saturday
of this week. City Coun, il and Staff were invited.
g)
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Don Smi th reminded IDC member' of the 192 Work Plan BRE goal
which was to visit, contact, and report on their assigned
industry. Cyndie Johnson reported she had contacted Bob Clark
at the NSP Regional Service enter, however, with bad timely
due to the storms in the Coka' 0 area a meeting will be setup
later.
5 "
CONSIDERATION OF A SUMMARY REP RT ON THE WORKSHOP PRESENTED BY
PAT PELSTRING.
Mayor Maus summarized the wor shop as a brainstorming session
which gave a fresh look and ga e directions for the HRA as Mr.
Pelstring had highlighted ther community's partnership
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7.
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IDC MINUTES
6-18-92
development projects and a ailable funding resources in
Monticello. Koropchak repor, ed on Mayor Maus' remark at the
workshop as to the wisdom of first developing the industrial
areas wi thin the ci ty limi s such as the Farm Credi t and
Hoglund properties before 0 nsideration of annexation for
industrial uses. This led to a concentrated discussion of the
Farm Credit property and it: potential land sale auction.
City staff expressed concern, ver parcels becoming landlocked
if sold without a road eas ment wi thin the 70 southernly
Business Campus acres. The eneral thought was for the city
to take a pro-active approac to develop a preliminary plat,
this a cooperative partners' ip wi th Farm Credi t j and for
future reference to take pro-active approach in the
development to extend East S venth Street. Additionally, as
a marketing point Koropcha reported on Mr. Pelstring's
comment that metro develope s refer to Monticello as that
community on the way to st. C oud which is in contrast of our
perceptiveness. Mary Micke reported the workshop was of
interest to her as a new mem ers of the IDC.
6.
CONSIDERATION OF SUB-COMMITT E UPDATES OR PLANS:
a) BRE Committee Reports - Covered earlier in the meeting.
b) IDC Marketing Commi ttee Attending commi ttee members set
Tuesday, July 21, 8:00 A , City Hall as the meeting date
to target a couple of j urnals for future presentation.
Presentation to center round the IDC budget of $1,000.
Commi ttee members are on Smi th, Dave Peterson, Mary
Micke, John McVay, and errilyn Seefeldt.
c) Local BRE Committee - Ko opchak requested input from the
IDC on the idea that ea h sub-committee member be given
an identical proposed in ustrial development project and
be assigned a communi y for research of necessary
ordinances, permits, an costs for building, plumbing,
water/sewer hook-up, nd building and site plans.
Recommendation was to fi st check with Mr. O'Neill as to
such a developed gui e and to table for further
discussion at the July 1 meeting.
OTHER BUSINESS.
a) Chamber Chairperson
Chamber meeting at noo
attendance and the need
candidates.
b) Don Smi th informed the 10
the Minnesota Enterpris
copy at the next meeting.
reminded IDC members of the
Also, she encouraged their
support the Miss Monticello
that Koropchak was featured in
Magazine, and asked to see a
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IDC MINUTES
6-18-92
8. ADJOURNMENT.
The IDC meeting adjourned at 8:20 AM.
\J~ ~Ij\%.!)~
Ollie Koropchak, IDC Executive Di ector
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MONTICELLO
July 6, 1992
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Mr. Jerald Schoen
Aroplax Corporation
2318 Chestnut Avenue West
Minneapolis, MN 55405
Dear Mr. Schoen:
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This letter is to confirm our telephone conversation of this
morning. On Thursday, .July 2, 1992, a copy of the Private
Development Contract between he Monticello Housing and
Redevelopment Authority and Jerald J. and Mary E. Schoen was mailed
to you for you and your attorney to review for comment prior to
final d.raft preparation. Please dvise your attorney to contact
Mr. John Dean of Holmes & Graven, telephone number 612-337-9207,
regarding any contract comments or questions. I will be on
vacation beginning July 9 and retu ning to the office on July 16.
It is the City's intent and request to have the Private Development
Contract executed prior to appr val of the requested $85,000
GreRter Monticello Enterprise Fu d by the Economic Development
Authority on Tuesday, July 21, 1992.
If you have any questions, pleas don't hesitate to call me at
METRO 333-5739 or (612) 295-2711.
Respectfully,
CITY OF MONTICELLO
Ollie Koropchak
Economic Development Director
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cc;
Lenny I)irscht, 8DS, Inc.
File V
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MONTICELLO
July 7, 1992
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295~2711
Metro: (612) 333~5739
Fax:- (612) 295~4404
Mr. Nicholas J. Stockwell
ECO Resources Corporation
720 Virginia Shores Circle
Excelsior, MN 55331
Dear Mr. Stockwell:
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Monticello's Industrial Recruitment Committee would like
to thank you for the time giv n Monticello as a potential
si te location for your pro osed agricul tural product
manufacturer project.
After careful consideration, the commi ttee decided to
continue their strong suppor of our Business Retention
and Expansion (BRE) Program. This program encourages
expansion of Ollr existing businesses, wherefore, in
indirect ways the city attem ts to protect a business'
interest while encouraging f ture development. Because
of the nature of your campa y's product and with some
unknowns associated in your production process such as
potential noise, dust, and odor, the committee has
determined the proposed ECO Resources project does not
complement the BRE program. Therefore, the Ci ty of
Monticello withdraws as an Interested community in the
ECO Resources site location earch.
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Additionally, Mr. Stockwell, I would like to mention that
the commi ttee was encour ged by your preventive
environmental concept; and they fel t because of the
nature of the business, a r ral site location would be
more sui table. If we can b of any assistance wi th a
Wright County or surrounding area site location, please
don't hesitate to call us.
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Mr. stockwell
July 7, 1992
Page 2
Again, thank you for your interest in Monticello, and we
wish you and the company gre t success.
Respectfully,
CITY OF MONTICELLO
~~ ~d\ ~.Sl3--
Ollie Koropchak
Economic Development Directo
cc: Debra Palmquist, NSP
.Jeff 0 I Neill, Ci ty Assl taut Administrator
IDC Commi ttee /'
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MONTICELLO
June 12, 1992
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Ms. Maureen Steinwall
Steinwall, Inc.
7895 Ranchers Road Northeast
Fridley, MN 55432
Dear Ms. Steinwall:
It was indeed my pleasure to have met in person and to have received the
. information on 8teinwall, rnc. I cong atulate Steinwall, rnc. on its various
awards whicll reflect your high manage ent, service, and quality standards.
The Ci ty of Monticello is most inte ested in pursuing a partnership wi tit
Steinwall, Inc. for the purpose of establishing a relocation expansion
project plan. The Ci ty works as a eam and each team members is here to
serve Steinwall, Inc. during its evelopment and transitional period.
Thereafter, Monticello's Business R tent ion and Expansion Program lends
continued support to industrial busin sses.
Enclosed, as promis8d, is a copy of th lease preplan between Shingobee, Inc.
and the City of Monticello using Tax ncrement Financing. Please feel free
to contact Mr. Tom Godlewski of 8hingo ee, Inc. regarding the plan. If I call
be of further assistance or if you w uld Like me to set up a meeting wi tit
Business Development Services, Inc. to further investigate potentiaJ
financial options, please don't hesi ate to call me at METRO 333-5739 or
(612) 295-2711.
Thank you for your visit and I look forward to visiting your facility ill
Fridley. I will contact you the week of June 15.
Respectfully,
CITY OF MONTICELLO
U SlQ"':~1 ~ 01 t\ l
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. Ollie Koropchak
Economic Development Director
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Business Development and Analysis Division
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- nmf!llnft. olf'fU' (II I 1...J"!:f'I1a mill I It... ,
900 American Cenrer Building
150 East Kellogg Boulevard
St. Paul, Minnesota 5510 1-14 21
612/296-8341
Fax; 612/296-1290
Ma 17, 1992
Ms. Ollie Koropchak
Economic Devel. Director
city of Monticello
250 E. Broadway
Monticello, MN 55362
Dear Ollie:
congratulations, your city has successfully met the 1992 star
city/County Recertification requirements.
Through the 1992 star City ction Plan, your community has
charted a solid economic developm nt course that has a capacity to
develop jobs locally and serve as a model for other Minnesota
cities.
wishing your city many succes es as it aggressively implements
its job creation strategy. Your 1992 star city Recertification
Certificate will be mailed soon.
Representative
An Equal Opportunity Employet