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IDC Agenda 02-20-1992 . . ., AGE MONTICELLO INDUSTRIAL Thursday, February City DA EVELOPMENT COMMITTEE 0, 1992 - 1:00 AM all MEMBERS: Chairperson Shelley Jo nson, Don Smi th, Ron Hoglund, Lowell Schrupp, Arve 'Grimsmo, Jay Morrell, Harvey Kendall, Dennis Taylor Ken Maus, Linda Mielke, John McVay, Dave Peterson, Tm Pogatchnik, Kevin Doty, Candy Benoit, Mary Micke, and!Cyndie Johnson. STAFF: Rick Wolfsteller, Jeff 'Neill, and Ollie Koropchak. 1. CALL TO ORDER. 3. 2. CONSIDERATION TO APPROVE THE JANUARY 16, 1992 IDC MINUTES. CONSIDERATION OF PROSPECT UP ATE: a) Wisconsin foam products manufacturer b) G<< G Oil Company c) Micro Tech d) Aroplax Corporation e) Tool<< Die, Plastic Mol ing Injection, 20,000 sq ft f) Rogers 20,000 sq ft rec cling company g) Monticello Processors, nc. h) Wafer Manufacturer i) Metro National Distribu ion company j) Package Products Manufa turer BRE UPDATE: a) Remmele Eng b) Tapper's Inc c) H-Window d) ABK, Inc. e) Automatic Garage Door d) Sunny Fresh Foods 4. CONSIDERATION TO REVIEW THE 992 BRE SURVEY RESULTS (Assign BRE visi ts) . 5. CONSIDERATION TO REVIEW AND A CEPT THE FINAL DRAFT OF THE 1992 ECONOMIC DEVELOPMENT WORK PL N. 6. CONSIDERATION OF IDC LIGHT HOUSEKEEPING ITEMS: a) Set '92 Banquet Date b) Set BRE Breakfast Date c) Elect IDC Industrial Re resentative(s) d) Earmark '92 IDC Industrt 1 Tours 1. CONSIDERATION TO HEAR WRIGHT OUNTY ECONOMIC DEVELOPMENT PLAN UPDATE. . . . IDC AGENDA FEBRUARY 20, 1992 8. CONSIDERATION TO HEAR EAS ME RO PHONE UPDATE. 9. OTHER BUSINESS. 10. ADJOURNMENT. CHAMBER MEETING, TODAY, AMERICAN EGION, 11:50 AM, SPEAKER: LLOYD JOHNSON CEO OF NORWEST CORPORATI N. . . . MINU ES MONTICELLO INDUSTRIAL . EVELOPMENT COMMITTEE Thursday, January 1! , 1992 - 7;00 AM City all MEMBERS PRESENT; Chairperson Selley Johnson, Don 8mi th, Ron Hoglund, Arve Grimsmo, Harvey Kendall, Dennis Taylor, Kevin Doty, Candy Benoit, Mary Micke, and Cyndie Jo nson. MEMBERS ABSENT: Lowell Schrup , Jay Morrell, Ken Maus, Linda Mielke, John McVay, Dave Peterson, and Tom Pogatchnik. STAFF PRESENT: Ollie Koropch Rick Wolfsteller and Jeff O'Neill. STAFF ABSENT; 1. CALL TO ORDER. Chairperson Shelley Johnson c lIed the IDC meeting to order at 7;02 AM and welcomed new members Kevin Doty, Mary Micke, and Cyndie Johnson. 2 . CONSIDERATION TO APPROVE THE ECEMBER 19 1991 IDC MINUTES. Ron Hoglund made a motion to a prove the December 19, 1991 IDC minutes, seconded by Harvey K ndall, and with no corrections or additions the minutes were approved as written. 3. CONSIDERATION TO REVIEW AND A CEPT THE MONTHLY IDC FINANCIAL REPORT. Treasurer Hoglund reported a alance of $3,054.28 at Security Financial and a balance of $43 .39 at Wright County State Bank for a total of $3,486.67. The balance includes the 1991 Chamber Contribution of $2,80 Candy Benoit made a motion to approve the monthly financi 1 report, seconded by Dennis Taylor and without further c mment the report was filed as given. 4. CONSIDERATION OF A FOLLOWUP 0 THE BRE SURVEY. Koropchak briefly summarized survey which was completed b catagories the overall asses were as follows: 1. 2. he results of self-assessment six IDC members. Of the six ment ranking from high to low FINANCE - 4 excelle t, 2 no answer. MANUFACTURING RECRU TMENT - 3 excellent, 1 good, 2 no answer. . . . IDC Minutes 1 -16 -. 9 2 3. INFRASTRUCTURE - 2 xcellent, 2 good, 1 not sure, 1 no answer (Sewer a d Treatment Plant capacity is a problem to big use~s.) 4. BUSINESS RETENTION - 2 excellent, 2 good, 2 no answer (Integrate he red flag issues or concerns into the overall e onomic development work plan.). 5. ORGANIZATION DEVEL PMENT - 1 excellent, 2 good, 3 no answer (Could ave better representation from industry, do we k ow what the Star Ci ty mission statement is.) 6. MARKETING MATERIALS - 3 good, 3 no answer (Need for the commi ttee to ffectively use press releases that reinforce acco plishments.) Individual questions with re intergrated into the 1992 W summary indicated the need fo and to the public of the IDC Also, Koropchak felt the low materials may coincide with t need for, have been Koropchak fel t the increased communication within ctivities or accomplishments. r assessment of the marketing e 1991 tasks not accomplished. Koropchak informed the IDC th t of the 24 BRE surveys mailed out to businesses, 17 have bee returned, coded, and mailed to the Department of Trade and conomic. Of the local survey questions completed four ifferent industrial company representatives expressed in erest in IDC membership. They were Steve Lemme, The H-Wind w; Bill Tapper, Genereux Fine Wood Products; Ray Schmidt, he Tire Service Equipment Mfg; and after six months Jerry An rusko, ABK, Inc. Of the question asked: Wha is the single most important project that could be under aken to make our communi ty a better place to operate a bus ness? Answers were as follows: - Industrial Recycling - Lower Property Taxes - Expand on "Your Kind 0 ~ Lower Workmen's Campen - Lower Real Estate Taxe - Lower Taxes - Industrial Recycling P - Implement Metro Phone Actively assist busine - Lower Tax Rate Place" ation ogram ses with financing to expand What do you think the role of the IDC should be? - Active supporter for i dustry - Work to reduce taxes, S op spending at accelerated rate because we have NSP he e. . . . IDC Minutes 1~16-92 Most businesses were receptiv amount receptive to a Chambe group size. to an IDC tour with a smaller tour probably due to a larger Koropchak indicated this is b no means the total results of the survey of which will be summarized for IDC members and coincided in the developmen of each company's BRE visi t questiQns. 5. CONSIDERATION TO REVIEW AND A CEPT THE 1991 ECONOMIC ACTIVITY REPORT AND THE 1992 ECONOMIC EVELOPMENT WORK PLAN. Chairperson Johnson highlight d the star City card handed out to IDe members which outlines the definition of a Star City. This may be a helpful tool t, use when visiting industrial businesses or as a response t the general public. Also, he noted the impressionable num .er of industrial contacts made during the year in compariso to the number of prospects it takes to successfully recruit an industry as reported in the 1991 Economic Activity Repor A number of those inquiries remain active prospects. Th report further indicates the increase of 147 industrial jo: s and the activi ties completed by the IDC. The committee sh uld be pleased. Koropchak handed out the 1992 Economic Work Plan and informed IDC members that an (-) mean carryover task from 1991 and (*) meant a 1992 task. Since the state extended the date to submi t the 1991 Assessment, 1992 Work Plan, and updated Community Profile to the end of February; she asked the IDC members to review, make commert, and recommend adjustments to the proposed Work Plan at the February meeting. In a brief review of the pr posed work plan the commi ttee suggested the water/sewer tas be restated to read: To review the city's current water/sewe hook-up charges and rates, and to update the water/sewer c mmunity comparison study. An additional task was added to the work plan: To review the ci ty I S current bui lding permi ts charges and to update the building permit community camp rison study. It was noted that the Middle School's building permit charge which was in the township was approximately $10,000 and the new elementary school bui lding permi t char. e which is in the city was approximately $35,000. In noting the continued EAS me asked for a status report 0 reported that within the last resident calls regarding the been referred to Koropchak b companies involved have been ro phone petition task, the IDe the EAS peti tion. Koropchak month about every other day a EAS status. These calls have Bridge Water. The telephone nable to agree on a meet point . IDC Minutes 1-16-92 . or the cable transmittal roue which needs to be determined prior to the establishment 0 the costs. Delays are due to the extension time granted by the Public Utilities Commission (PUC) which allows the teleph ne companies additional time to agree upon the meet point orlhas allowed additional time to companies because of a change 'in company attorneys. The major companies involved are ridge Water and US West Communications. Within the 1 st month, Koropchak has give out the PUC telephone number to c ncerned residents therefore if they so desire they might dir ctly voice their concerns to the commission. It's been app 'oximately two years since the petition of interest was sub itted and accepted. Koropchak further noted that because n dollars were allocated by the IDC or the City Council,nly endorsement, she has not attended the public hearings or granting an extension of time therebye eliminating the pate tial of any legal fees. The IDC suggested she not waste her time by attending the public hearings but to continue the uggestion of calling or writing the PUC and to contact an Alb rtville resident on the average cost for a one family line. he Times will publish an updated status report prior to exten ing an IDC invitation to Bridge Water to attend a meeting. ncreased calls maybe due to the drawn-out length of the EAS p ocess, high telephone bills, and an increase of new metro res~dents. CONSIDERATION OF A REPORT DEVELOPMENT MEETING. Economic Work Plan at The IDC will be asked to the February meeting. 6. THE WRIGHT COUNTY ECONOMIC Koropchak noted that the Mon icello City Council approved a $500 contribution/pledge fo the development of a Wright County Economic Development P an subject to pledge commitments from all other county communi ies. Committed pledges have not been collected from any of he cities or townships and the cities of Ostego, Buffalo, a d South Haven haven't approved a pledge commi tment. The tas: force recommended the Wright County Commissioners authori' e the hiring of an individual, consultant firm, or contracting service for development of an economic plan and to impleme t a study for a County HRA. It is Koropchak's intent to have the City Council and IDC review the developed plan and s udy, and to make comment or recommendation to Pat $awat ke prior to any action by the Wright County Commissioners. The IDC has concern about the development of any county ta ing authority. . . . . IDC Minutes 1~16~92 7. CONSIDERATION TO APPOINT A USINESS REPRESENTATIVE TO THE AQUATIC CENTER TASK FORCE. ChairpersQ,.,l\ Johnson informed the IDC that the Ci ty Council authorized ~ feasibility stuy for a proposed Aquatic Center and authorized the establish ent of an Aquatic Center Task Force. The Aquatic Cente was proposed by the Parks Commission. The Council moti n passed 4-1 and Council Members Clint Herbst and Shirley And rson were appointed to the task force. Council members aske for two additional members one a senior citizen and one a b siness representative. The Counci 1 requested IDC recommend a business representative to the task fo ceo Candy Benoit volunteered to be on the task force as the Chamber Chairperson and having aquatic knowledge as a memb r of the Wright County Aquatic Association. The IDC agreed to recommend Candy Benoit for appointment and further rec mmended that Candy Benoi t and Cyndie Johnson come up wi th a business representative for appointment. Koropchak wa unsure if the Council was receptive of two names for a pointment. Koropchak presented the proj for payable 1992. Projection 1991 estimated market valu percentages, and the projecte by Wright County. cted increase of property taxes were based on the assumption of s (EMV), 1992 classification 1992 Tax Rate (TR) as estimated Industrial EMV $333,600 '91 taxes, $12,958.96 '92 projected taxes, $14,570.21 Projected increase $1,611.25 Industrial EMV $787,800 '91 taxes, $32,694.54 '92 projected taxes, $36,713.92 Projected increase $4,019.38 Commercial EMV $118,000 '91 taxes, $3,591.10 '92 projected taxes, $4,059.25 Projected increase $468.15 Homestead EMV $90,600 '91 taxes, $993.68 '92 projected taxes, $1,118.73 Projected increase $125.05 Homestead EMV $70,500 '91 taxes, $640.80 '92 projected taxes, $723.58 Projected increase $82.78 . . . IDC Minutes 1-16-92 Don Smith noted for any growi g community comes along growing pains. The IDC discussed th projected tax rate increase as it relates to the necessiti~ of the additional school and jail improvements, and the Iva1uation decrease of the NSP Plant. They noted the nati nal focus on the NSP Red Wing fuel-spend storage proposal hich will also be faced at the Monticello facility, Addftionally, the Monticello NSP facili ty is seeking approva for an operational re1icense permit, and Harvey Kendall n ted that NSP recognizes is not going to be easy. Arve Grim mo talked about the history of the community's back and forth! tax status, Chairperson Johnson talked about the proposed scool/city (50/50) partnership to light the tennis courts, and on Smith mentioned Monticello's quality of life as seen thr' ugh the community's completed playground project. Chairperson Johnson noted the IDC is not a taxing authority, noted the need to elp the business district, and encouraged to support Montice 10: Your Kind of Place. Kevin Doty informed the IDC that a recession starts and recovers from the coastal US and progre ses inland and one need only to read a newspaper to see the r cession backlash. Doty further noted with the timing of he recession, the timing of projected tax increase, and ith some Monticello industrial and retail/commercial busine ses riding on the fence line; this may not be the best time for a referendum. With the IDC being representat ves for Monticllo's industries, with the increase of industri s voicing property tax concerns according to the '92 BRE surv y, and with above discussions; the IDC agreed timing was th key issue. The IDC further discussed that the task force ight consider the timing of the referendum (possibly November rather than spring), consider al ternative plans to reduce the total project cost, and consider other funding opti ns such as was done for the playgound project. Ron Hogl nd fel t that the IDC must be careful to remain objective: and, at this time, not to encourage the aquatic center roject. 8. CONSIDERATION a) Aroplax Corporation - M . Schoen states it looks like Monticello is the site 10 ation and has asked the Oakwood Partnership to stake th parcel for building layout. However, Mr. Schoen has also given Brooklyn Park until today to finalize a c mpetitive financial package. Koropchak informed the I C that Bill King, previous Big Lake City Administrator, ,'s no longer with Brooklyn Park and has been hired by BD , Inc. Lenny Kirscht a former graduate of Monticello H'gh has also been hired by BDS, . IDC Minutes 1-16-92 . . Inc. and is now workin funding application pro Schoen commits to a Mont noted that George Phill Schoen. on the Aroplax project. The ess will not continue until Mr. cello site location. Kevin Doty ps has been in contact with Mr. b) Rogers 20,000 sq ft ma ufacture facility - In talking with Bob Parish, the co any is working with the State's Waste Management offici Is as this project involves the need for heavy cap' tal to fund the recycling machinery/equipment. M" Parish was very interested in Mont icello' s programs . nd the Publ ic Work Director's posi tive atti tude and iinvolvement wi th the ci ty and county's recycling prog'ams. Koropchak has talked with Mr. Vaugh Veit regarding his willingness to work with the ci ty as Vei t has compl ted construction work for the company's Rogers facilities. c) 10,000 sq ft industrial acility with 20 ft ceiling span needs - Koropchak aske the IDC if they knew of an existing building to me t this startup company's needs. The company is a plastic blow molding company which produces larger plastic products such as drums. The owner is from Brainerd and has completed his business plan and projections, and has applied for Central Minnesota Initative Fu ds. Koropchak marketed the TIF/Spec Plan but as a n w startup company, they are only interested in an exist' ng building. Koropchak also contacted M&P Transpor sand Clow Stamping with no success. The IDC had no referrals. d) Monticello Processor, Inc. This company has incorporated as a Sub Partnership and occupies the previous Centra Sota bu lding off vacated Linn Street. The company will truck in barley or soy beans for cleaning, grinding, and roasting wi th the end-product being bagged in 5 or 0 pound bags and marketed as agricultural feed or for human consumption. The company has a lease on the build ng for one year with the option to purchase. Howard cMillan, Jr., Martin Farrell, Russell Felten, Bob Pete son would be the top management. Ned Brandt, formerly with Le Center Development Corporation, has been hired to write the company's Economic Recovery Grant. The group was to have met with the State's Community Deelopment office this past week. Job creation is projecte at 10-15. The partnership was interested in our local unding program. Guidelines and preliminary application for the Greater Monticello Enterprise Fund and Centr 1 Minnesota Ini tative Fund were mailed to Mr. Brandt. . . . IDe Minutes 1--16-92 e) Metro National Distribution Facili ty - The company is still considering int rnal decision prior to their continuation to search or a site location. f) Wafer Manufacturer - no new word has been received from the State or NSP. g) Packaging Products Manu acturer - no new word has been received from the NSP. h) Foam product manufactu er This Plymouth, Wisconsin headquartered company i looking for an existing 35,000- 40,000 sq ft building wi h five loading docks to relocate their Maple Grove facil"ty. The company produces foam products such as insulat"on used in building construction and sells to Menard's, tc" They are seeking location sites between Monticello and St. Cloud, and would employ approximately 25 people. Koropchak marketed the TIF /SPEC plan and will mail th project plans and marketing materials including the video" The company is having difficulty finding an ex sting facility with five docks. 9. OTHER BUSINESS. 10. ADJOURNMENT. a) Chamber Banquet Plans ne ded no further discussion. The IDC meeting adjourned Q)~ ~cl)~Qj} :45 AM. Ollie Koropchak, Economic Developm nt Director i_ . . . IDC AGENDA FEBRUARY 20, 1992 5. CONSIDERATION TO REVIEW AND A CEPT THE FINAL DRAFT OF THE 1992 ECONOMIC DEVELOPMENT WORK PL N. A. REFERENCE AND BACKGROUN Please note the following ch nges since the January meeting: ! ! Page 2 - TASK: Identify conc rns raised in the BRE surveys and integrate those concerns into the work plan. - EAS Metro Phones - Property Taxes ( - Labor Training - Recycling Progra Page 4 - TASK: Encourage press releases which reinforce the activities of the IDC. TIMES and KMOM. Page 5 - TASK: Review the ci y's current water/sewer hookup charges and rates, and to update the water/sewer CO! muni ty comparison study. Page 5 - TASK: Review the c ty's current building permit charges and 0 update the building permi t community comp ny comparison study. Since the January IDC meeting, I have heard no comments regarding the work plan from DC members so my assumption is the first draft was acceptabe and the IDC need only review the above mentioned changes. Inorder for the City Council to consider adoption of the '91 eport and the '92 work plan on February 24 and to meet the State I s March 1st Star City Recertification deadline, I Su gest the IDC take action on the final work plan draft. . . . IDC AGENDA FEBRUARY 20, 1992 A. REFERENCE AND BACKGROUN 6. CONSIDERATION OF IDC LIGHT H SEKEEPING ITEMS: a) Set '92 Banquet Date - I the previous few years, the IDC Banquet has been held th 5th Monday of the month in the fall. In '92 this would be Monday, August 31 or Monday, November 30. Thanksgivi 9 is the 26th of November. The 4th Monday of September .s the 28 and the 4th Monday of October is the 26. b) Set BRE Breakfast Date -Last year the BRE Breakfast was held June 30 at the M nticello Country Club and ten industrial businesses at ended. It was suggested to find a new meeting place as the breakfast cost seemed high with Sunny Fresh donatin some of the food. The BRE Survey results 4 companies 3 companies 3 companies 1 company 3 companies 2 companies dicated: Fall Spring Anytime Summer N/A No Although, four companie indicated fall I would still suggest a spring date (Ap ill as not to conflict with our fall banquet date. Note hree companies said anytime and also note the program id as in the survey results. c) Elect IDC Industrial Rep esentative(s) : As per the BRE Survey res Its, the following individuals expressed interest in 1D membership: Bill Tapper, Tapper Ray Schmidt, Tire S Jerry Andrusko, ABK Steve Lemme, The H- Merrlyn Seefeldt, E s Inc rv Equip Mfg (possibly) Inc. (maybe in 6 months) indow Company ectro Industries I recommend the IDC tak action to elect one or more persons for IDC membersh p. . . . IDC AGENDA FEBRUARY 20, 1992 d) Earmark '92 IDC Industr al Tours: The following companie expressed interest in hosting other industrial busine ses and the IDC: Hoglund Bus Season: N/A Time: N/A Dahlheimer Dist Summer Lunch Tapper's Winter After Lunch Remmele Eng Anytime Bridge Water Anytime Tire Serv Equip Anytime (possibly) NSP Nuclear I N/A Sunny Fresh Anytime Morning ABK, Inc Fall After tun Rainbow Enterprises N/A H-Window Summer/Fal1 Morning Clow Stamping Fall After Lun Bondhus Corp Anytime Lun or aft Lun Electro Industries Fall After Lun Those who expressed no int rest in a Chamber visl t were. Hoglund Bus, Bridge Water, Sunny Fresh, NSP Nuclear, and Rainbow Enterprises. Previos visits in the last six years have been at Remmele, Tire Serv Equip, and H-Window. With the plans for the banquet and bre kfast, I recommend the IDC only consider two industrial v sits per year and consider Tapper's, Sunny Fresh, ABK, nc., Rainbow Enterprises, Clow Stamping, Bondhus Corp, and Electro Industries. Minnesota Department of Trade and Economic Development . January 21, 1992 Ms. Ollie Koropchak Economic Development Directo 250 E. Braodway P. O. Box 1147 Monticello, MN 55362-9245 Dear Ollie: . I just wanted to let you kno from Industrial Design Corpo that their client has electe Minnesota for their semicond ~---- Business Development and Analysis Division 900 American Center Building 150 East Kellogg Boulevard St. Paul, Minnesota 55101-1421 612/296-8341 Fax: 612/296-1290 that I received a letter ation (IDC) that indicated not to pursue sites in ctor facility. Thanks for your assistance i preparing a proposal for your community, and I look f rward to working with you in the future. Sincerely, ~. Terrell Towers Industry Recruiter . An Equ"' Opporruniry Employer . . . HETIY ADKINS Senator 22nd District 1655 Kadler Avenue NE St. Michael, Minnesota 55376 Phone: 497-2693 Office: G-29 State Capitol St. Paul, Minnesota 55]55 Phone: 296-5981 January 14, 1992 Ollie Koropchak, Director Monticello Industrial Development Carom. 250 East Broadway P.O. Box 1147 Monticello, MN 55362 Dear Ollie: Senate State of Minnesota We would like to thank you for yo r many prayers, Masses offerings, flowers, food, and symathy shown the Adkins and Niess families during this past m nth. We wanted you to know how much we ,appreciated your expression of love to our families. The Memoril Offerings have been given in memory of Susan and Ryan Niess to: * Camp Courage * The Minnesota Chapter 0 the Nature Conservatory * Minnesota Citizens Conc rned for Life (MCCL) * The Franciscan Sistersf Little Falls * St. Stephen's Shelter i Minneapolis * Mass offerings at the N ;tional Shrine of Our Lady of the Snows * The Minneapolis Childre 's Hospital * The American Cancer Sociiety Anna Niess, our 2-1/2 yea.r old grai ddaughter, is improving daily after her three week stay in the M'nneapolis Children's Hospital. She enjoyed the many bU, ches of balloons and toys that were sent to cheer her up. . We are sincerely grateful for youri love and. support during this very difficult time. Thank you ag in for caring. Sincerely, ~ BETTY AND WALLACE ADKINS FAMILY COMMITTEES · Chairman, Local Government · Rules nd Administration . Commerce . Health and Human Services · Employment · SUBCOMMITTEES. 'onsumer Protection and Regulated Industries . Health Care Access Division · COMMISSION · L,cgislativ' Commission on Child Protection ...... 56