IDC Agenda 02-21-1991
.
AGENDA
MONTICELLO INDUSTRIAL DEVLOPMENT COMMITTEE
Thursday, February 21,1991 - 7:00 AM
City Hall
MEMBERS: Chairperson Shelley ohnson, Vice Chairperson Don Smith,
Treasurer Ron Hog1un , Lowell Schrupp, Dale Lungwitz,
Jay Morrell, Arve Gr"msmo, Harvey Kendall, Ken Maus,
Dennis Taylor, Linda Mielke, John McVay, Dave Peterson,
Tom Pogatchnik, Bob awson, and Candy Benoit.
STAFF: Rick Wolfstel1er, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE T E JANUARY 18TH IDC MINUTES AND THE
JANUARY 22ND IDC COMMITTEE MINUTES.
3. CONSIDERATION TO HEAR AND CCEPT THE IDC FINANCIAL REPORT.
4. CONSIDERATION TO REVIEW AN ADOPT THE FINAL DRAFT OF THE
1991 IDC GOALS AND PROPOSE BUDGET.
.
5. CONSIDERATION OF AN UPDATE ON THE PROGRESS OF THE TIF/SPEC
PLANS.
6. CONSIDERATION OF PROSPECT PDATE:
a) 1.2 million sq ft distribution center
b) Arop1ax
c) Circuit Technologies,
d) Woodcraft Industries,
e) Clark Associates
7.
CONSIDERATION TO DISCUSS TH
CITY OF MONTICELLO AND THE
8. OTHER BUSINESS.
9. ADJOUNRMENT.
.
HACA PAYMENTS CERTIFIED FOR THE
FFECT ON PROPOSED TIF PROJECTS.
.
MINUTES,
IDC REQUEST FOR PROPOSAL TIF/PEC PRE-PLANS COMMITTEE
Tuesday, January 22, 19 1 - 6:30 P.M.
City Hal'
Ron Hoglund, Jeff O'Neill,
MEMBERS PRESENT: Shelley Joh
and John Mc
STAFF PRESENT: Ollie
The IDC received three complet' d Request for Proposals
I
to Prepare TIF/SPEC Pre-Plans. rom Shingobee, Loretto,
Dolphin Development and Constr ction Company, Inc.,
Chanhassen, MN; and 21st Centu' y Builders, Maple Lake,
MN'
,
MN.
The committee reviewedeach pr posals on the basis of the
established criteria: Cost Copetitiveness, Quality of
Design Criteria, Competency/Exerience, Project Manager,
Participation Level in Project Marketing, and Financial
References.
.
Jeff O'Neill noted from his pe ception Shingobee has proven
a local track record as a reli ble developer based on previous
development in the City of Mon icello. Dolphin Construction
and 21st Century having establ shed no local record, however,
plans are for 21st Century to evelop a strip mall in the
spring. O'Neill questioned whether we are comparing apples
to apples on the lease rates. oropchak responsed that
the lease rate costs were wi tho t the inflect of TIF and
were Triple Net Leases.
Koropchak further noted that on
curbing and pavement were inclu
and professional fees other inc
interest, mortgage fees, points
by Mr. Pat Pelstring that the c
project costs and the lease rat
and equity injection.
the cost competitiveness sheet:
ed under the parking costs,
uded soft costs, construction
etc. It was suggested
mparison between the Dolphin total
maybe due to inflated project costs
Gary Anderson, City Building In pector, informed the committee
both plans submitted by Shingob e and 21st Century were workable.
He further noted that Shingobee s building didn't meet the
required side setback for indus rial zoning, however, he saw
no problems as the site as ampl room to shift the building
over. John McVay noted the imp rtant of the electrical bus
duct installation which allows ,., flexibility access for
any type of production equipmen although more exp~ensive to
ins tall.
.
Koropchak noted from an aesthetic value the design criteria
desciption from the Dolphin and 21st Century presented an
exterior pleasely building. All developers presented excellent
experience, project manager, and financial references.
Koropchak noted that in her cony rsation with Mr. Maus,Raindance
Partnership has a professional s aff and carries out concerns
.
IDC Committee
1/22/91
Page 2
voiced in relationship to thei:
noted that the description pro
for marketing the project. cre
between the developer and the
mention the city's role only t
project through real estate jo
networking professional associ
lease arrangement. Koropchak
ided by Shingobee as plans
ted a joint marketing partnership
ity. The description didn't
e developer's role by marketing the
rnals and established developer
tes.
The 21st Century proposal didn t follow our proposals mainly
because of a time constraint. lans and costs were submitted
in reference to a similiar pro: ect completed in Little Falls.
Dolphin provided no plans.
.
Based on the above discussion.
recommending Shingobee as the
TIF/SPEC Pre-Plans. Recommend'
HRA on January 23. 1991 for fi
further included that Shingobe
the proposal for continuity an
If for some unknown reason. aI'
the confirmation of clarify an
between the selected developer
the committee recommended reop
Shelley Johnson seconded the m
Jeff O'Neill suggested the pro
the City's Marketing Teaser/Ma
~ \<C1'-O~~~
Ollie Koropchak
IDC Executive Secretary
.
Ron Hoglund made a motion
elected developer for the
tion will be given to the
al approval. The motion
and city staff review
to ~Dnfirm~clarif1c~tion.
hough highly .unlikely.
continuity of the project
and city was not in agreement~
ning the bid process.
tion which passed 4-0.
ect be marketed within
ler.
.
MINUTES
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Friday, January 18, 19 1 - 7:00 AM
City Hall
MEMBERS PRESENT:
Chairperson
Hoglund, Arv
Dennis Tay10
Lungwitz, Li
McVay.
helley Johnson, Don Smith, Ron
Grimsmo, Bob Dawson, Tom Pogatchnik,
, Harvey Kendall, Candy Benoit, Dale
da Mielke, Dave Peterson, and John
MEMBERS ABSENT: Lowell Schrup , Jay Morrell, and Ken Maus.
STAFF PRESENT: Rick Wolfstel1 r, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
Chairperson Shelley Johnson called the IDC meeting to order
at 7:00 AM and welcomed Can, y Benoit to the IDC as the Chamber's
Vice President replacing To McDermott as Chamber Past-President.
2. CONSIDERATION TO APPROVE
DECEMBER 19, 1990 IDC MINUTES.
.
Arve Grimsmo made a motion 0 approve the December 19, 1990
IDC minutes, seconded by Ha vey Kendall, and with no corrections
or additions the minutes we e approved as written.
3.
CONSIDERATION TO HEAR AND A PROVE THE IDC FINANCIAL REPORT.
Treasurer Ron Hoglund repor
Security Federal, a balance
Wright County State Bank fo
Linda Mielke made a motion
report, seconded by Don Smi
the financial report was ac
ed a balance of $4,103.36 at
of $1,435.87 and $86.15 at the
a total balance of $5,625.38.
o accept the IDC January financial
h and without further comment
epted and filed as given.
4. CONSIDERATION TO REVIEW, AD UST AND APPROVE THE 1991 IDC
GOALS AND PROPOSED BUDGET.
Koropchak presented the IDCmembers with written copies of
I
the 1990 IDC Goals, propose 1991 IDC goals and budget.
Koropchak congratulated theIDC members on a job well done
for completion of twenty-two 1990 goals out of the twenty-four
goals written.
Chairperson Johnson and Koro chak previously met to determine
the 1991 goals which were pr sented to the IDC members in
preliminary form and consist, nt to Star City requirements.
The proposed goals were o~Ll'ned by Koropchak with the use of an
overhead and the IDC was enc uraged to make comment and
suggestions. Don Smith expr ssed his likes for the proposed
Industrial Quarterly Newslet er and suggested the newsletter
be inserted with the Chamber newsletter and given to out
to prospects. They further suggested the meeting with
Doug Gruber, County Assessor include the City Council and
.
.
IDC Minutes
1/18/91
Page 2
4. CONTINUED.
County Commissioner Pat Sa
in Monticello the IDC agree
industrial representative t
likely. Jeff O'Neill expr
need to develop a strategic
and to enforce our existing.
tzke. With the new industries
that the potential to find an
serve of the IDC was more
ssed to the IDC members the
plan for industrial land use
ordinance.
I
The proposed budget include the 1990 balance, projected revenue
of $15,850 from the banquetl ticket sales, city and chamber con-
tributions, and interest. 'roject expenses totaled $16,890,
suggestions were made to de ete the budgeted amount for an
appraisal, and project an a ount for the marketing program
and miscellaneous in accord nce with the proposed goals.
Don Smith made a motion to
1991 IDC Goals and Proposed
view the revisions as sugge
reviewed and accepted at th
motion was seconded by Harv
discussion passed unanimous
able final approval of the
Budget inorder to objectively
ted. Final drafts to be
February IDC meeting. The
y Kendall and without further
y.
.
5. CONSIDERATION TO ELECT 1991 IDC OFFICERS: CHAIRPERSON, VICE
CHAIRPERSON, AND TREASURER.
Chairperson Johnson expressed his willingness to give up the
IDC Chair after serving for two years, yet, expressed his
willingness to remain chair if no oneself stepped forward.
Arve Grimsmo made a motion t re-elect Shelley Johnson as
IDC Chairperson for 1991, se onded by Dale Lungwitz and
without further nominations I he motion was passed unanimously.
i
Ron Hoglund made a motion to
Vice Chairperson for 1991, H
nominations. Arve Grimsmo s
further discussion the motio
Dale Lungwitz made a motion
IDe Treasurer for 1991, Bob
nominations. The motion was
and without further discussi
unanimously.
6.
CONSIDERATION OF PROSPECTS:
a) 1.2 million sq ft distri
Anoka, and Owattona are the
of which this large distribu
Monticello has four site opt
Soil maps were mailed to the
for all four sites. The com
visit the communities and si
First priority for the compa
.
re-elect Don Smith as IDe
rvey Kendall called to seize
conded the motion and without
passed unanimously.
o re-elect Ron Hoglund as
awson called to seize
seconded by Arve Grimsmo
n the motion passed
ution center - Monticello, .~
hree communities in the state
ion center is considering.
ons presented to the company.
company via the TED office
any representatives plan to
es around the 25th of February.
y is a site with direct access
.
IDC Minutes
1/18/91
Page 3
6. CONTINUED.
to the Interstate and the
force. No building site p
peak times have been given!
b) Aroxplax - Jerry, Paul
visited Monticello and tou
3rd. City staff reviewed
and made a few suggestions
programs were discussed.
the West 408 ft of Lot 3,
Koropchak informed Pat Pel
telephone call to explain
and how they work. A meet
.
c) Woodcraft Industries,
Thomas Ritsche called Koro
disclosing the company's p
their operations by 100,00
be created were 150 at a p
value of the building at $;
owns 15 undeveloped acres
however, feel the land is
(corner of Hwy 10 and Hwy
of hardwood dimension cabi
Don Swanstrom toured the i
staff and Pat Pelstring on
prepared a financial packa
was most interested in the
their building design need
office and docks face sout
The company is also lookin
the state of Kentucky as t
materials are imported fro
construction as soon as po
with Pat Pelstring to obta.
for development of the fin
to inquire of the availabi
to research the developmen
sewer, etc.
d) Clark Associates - Mr
of analyzing the business
"touch free" car wash equi
through the efforts of CIa
vailability of an existing
an or specific information
by the company.
labor
of truck traffic
and Steve Schoen, owners of Aroxplax,
ed the industrial sites on January
he preliminary building plans
and Monticello financial incentive
he company is most interested in
lock 2, Oakwood Industrial Park.
tring to give Jerry Schoen a
n detail various financial programs
ng has been set for January 21st.
nc. - The company's President
chak office on January 7, 1991
ans to relocate and expand
sq ft. The number of jobs to
y scale of $6.50. Estimated
.8 million. The company
djoining their St. Cloud location,
00 valuable for industrial development
3). The company is in the production
et components. Mr. Ritsche and Mr
dustrial sites and met with city
January 8th. Mr. Pelstring had
e for the company, the company
Hoglund property which best met
and the desire to have the
along with the freeway exposure.
at Becker and have considered
e majority of their raw wood
The company plans to begin
sible. The meeting concluded
n company financial information
ncial package, Koropchak
ity of the interested site and staff
of the site with road, water,
Pet Pelstring is in the process
Ian for the company which produces
ment. The company is being marketed
k Associates.
e) Kromer Company - A com any representative called Koropchak's
office on January 7th inqu ring of available industrial buildings
or sites. This company is presently located in Mound, Minnesota
and looking for an approxi ate 13,000 sq ft facility for lease/
purchase. The company pro uces spray type equipment for stripping
football fields, farm fert lizers, etc. The company is looking
.
.
IDC Minutes
1/18/91
Page 4
6. CONTINUED.
e) to relocate which woul
area to be under one roof.~
7-9 people of a semi-skill'
for availability of financ
a good line of credit. In
assistance was mailed to t
is not interested in any d,
development.
.
f) Circuit Technologies,
Pelstring, Leo Adams, Larr
Koropchak met with the len
Bank and Wright County Sta
meetings were to inform th
concept or nature of their
niche. The financial pack
requires bank participatio
banks to get a feel of the
of their willingness to pa
of an SBA application. BD
re-run their projections t
7. CONSIDERATION
PRE-PLANS.
Koropchak reported
Shingobee, Century 21 Buil
Construction Company, Inc.
Ron Hoglund, Jeff O'Neill,
me\ following this meeting
8. OTHER BUSINESS.
allow office, sales area, and production
The company presently employs
d level. The company was looking
al packages and a local bank for
ormation of sites and financial
e company. At present the company
rect contact as this is a future
nc. - On December 23, 1990. Pat
Corson, Richard Wernersbach, and
ing officer at both First National
e Bank. The purpose of these
lending institutions of the
start-up business and their marketing
ge consists of SBA funding which
so the intent was to allow the
proposed project and a reading
ticipate prior to BDS preparation
has required the company to
allow start-up growth.
R PROPOSAL TO PREPARE TIF/SPEC
ntractors responded to the proposal:
ers, and Dolphin Development &
The IDC committee of Shelley Johnson,
John McVay, and Koropchak will
to select a developer.
Koropchak informed IDC mem~ers that the Remmele Engineering
Dedication is scheduled fo~ Monday, February 4th. Members
will be receiving an invitJ ion from the company.
9. ADJOURNMENT.
Ron Hoglund made a motion t adjourn the IDC meeting, seconded
by John McVay, the IDC meet ng adjourned at 8:00 AM.
~ \<It\o~~~
Ollie Koropchak ~
IDC Executive Secretary
.
~J
.
ISHINGOBEE I OLPHIN I 21ST CENTURY BUILDERS
I I I
I 15K 20K 25K I 15K 20K 25K I 15K 20K 25K
--------------------------____1______________________________1 __________________________1___________________________
ITEM I. CONSTRUCTION COSTS I I i I
I I i I
/ $900 $900 $900 Ie' VERED COVERED COVERED I
Iii I
B. Site Plans I Iii
Parking I $73,270 $71,932 $74,055 1 23,400 $25,400 $27,600 I $35.000
Landscaping I $5,000 $5,000 $5,500 / 11,000 $11,500 $12,000 / $0
Drainage I $6,000 $6,000 $6,000 I $4.000 $4,000 $4,000 I $0
Elevation I $32,728 $30,118 $31,120 / $ 5,000 $25,000 $25,000 I $0
Other I I ! 3,700 $3,700 I
---------------------------___1______-----------------_______/__________________________/___________________________
SUBTOTAL I $116,998 *$113,050 $116,675 I $ 7,100 $69,600 $68,600 I $35.000 $44,000 $50,000
1 I I
C. Building Construction I I I
Permits I $5,000 $6,500 $6,800 I $18,000 $20,000 $21,000 I $0 $0 $0
Utilities I $6,000 $6,200 $6,500 I $15,000 $15,000 $15,000 I $0 $0 $0
Materials I $121,000 '144,568 $174,450 1$41 ,500 $550.000 $672,500 1$405.000 $494,000 $561,000
Labor I $121,000 *$144,568 $1'14,450 /AB( E ABOVE ABOVE I $0 $0 $0
Other I 1 : I
-----------------------------_1______-----------------_______1___' _______________________1___________________________
SUBTOTAL I $253,000 $301,836 $362,200 1$44,,500 $585,000 $708,500 /$405,000 $494,000 $561,000
. I I /
D. Peefe" i ona 1 Fees / I I
Architect 1 $7,000 * $7,250 $7.500 I $18,000 $19,000 $20,000 I $10,000 $12,000 $14,000
Engineer I $3,000 * $3,000 $3,000 I $7 000 $7,500 $7,000 I $0 $0 $0
Attorney I $3,000 * $3,000 $3.000 I $S 500 $5,500 $5,500 I $0 $0 $0
Others I $46,000 * $53,350 $60,700 I $92 000 $65,000 $0 I $18,000 $22,000 $25,000
-----------------------------_1______-----------------_______1____ ______________________1___________________________
SUBTOTAL 1 $59,000 $66,600 $74,200 1$122,500 $97,000 $32,500 I $28.000 $34,000 $39,000
I I I
I I I
I $0 $0 $0 I $0 $0 $0 I
I I I
I I I
Aquisition I $70,000 $70,000 $70,000 1$150, 00 $150,000 $150,000 I
Site Preparation 1 (COVERED) (COVERED (COVEREDI $15, 00 $15,000 $15,000 I
Soil Boring Tests I $3,800 $3,800 $3,800 I $3, 00 $3,500 $3,500 I
Other I 1 I
-----------------------------_1______-----------------_______1______ ____________________1___________________________
SUBTOTAL I $73,800 $73.800 $73,800 /$168.5 0 $168,500 $168,500 I $0 $0 $0
1 I I
I I I
/ $503,698 $556,186 $627,775 1$803,6 0 $920,100 $978,100 1$468,000 $572,000 $650,000
I I I
1 I I
ITEM II BASE BID LEASE RATE I I I
I I I
A. l~le Rate ~r Iquare loot/ 14.1i 14.iO 14.2i I 14.i 14.iD 1'.iO I li.7i li.li li.OD
I
$4.00 $4.00 I
$9.00 $9.00 I
I
A. Building Design Plans
.$44,000
$0
$0
$0
$50,000
$0
$0
$0
E. Other (General)
F. Land
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
TOTAL
$4.0
$9.0