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IDC Minutes 12-19-1990 . MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Wednesday, December 19, 1990 - 7:00AM Ci ty Hall MEMBERS PRESENT: Chairperson Shelley Johnson, Don Smith, Dennis Taylor, Arve Grimsmo, Jay Morrell, Ron Hoglund, Lowell Schrupp, Linda Micke, John McVay, Barvey Kendall, Ken Maus, and Dale Lungwitz. MEMBERS ABSENT: Dave Peterson, Tom Pogatchnik, Tom McDermott, and Bob Dawsor. STAFF PRESENT: Jeff O'Neill ard Ollie Koropchak. 1. CALL TO ORDER. Chairperson Shelley Johnsol called the IDC meeting to order at 7:00 AM. 2. APPROVAL OF THE OCTOBER 18 AND NOVEMBER IS, 1990 IDC MINUTES. . Arve Grimsmo made a motion November 18, 1990 IDC minu and with no further discus as written. to approve the October 18 and es, seconded by Harvey Kendall ion, the minutes were approved 3. CONSIDERATION TO REVIEW AN REPORTS. ACCEPT IDC 1990 YEAR END FINANCIAL The IDC having received a etailed year end financial report of income and disbursement for the accounts held at Security Financial and Wright Count State Bank showed balances as of December 1990 of: WCSB ch cking, $86.15; WCSB Money Market, $6,104.95; and Security Fi ancial Money Market, $4,083.10. Jeff O'Neill noted he woul verify the Remmele Engineering 68 acres appraisal for $40,1.00. Is this a' ~City expense? With no further discussion: Lowell Schrupp made a motion to approve the 1990 Year-E' d Financial Reports, seconded by Dennis Taylor, the repo ts were approved and filed. CONSIDERATION TO AUTHORIZE PUBLICATION NOTICE FOR THE REQUEST FOR PROPOSAL TO PREPARE TI"'/SPEC BUILDING PRE-PLANS. 4. . Koropchak informed the IDG members that the enclosed request for proposal was reviewed ,y Attorney Tom Hayes, BDS President Pat Pelstring, Shelley Johlson, Ken Maus, Rick Wolfstel1er, and Jeff O'Neill. Jay Mor: ell inquired of some excellent questions regarding the pr:'posal: a) Have any other cities used this concept, b) Of easeable inquiries, does a company lease elsewhere, c) How long was the bank industrial building for sale or lease, d) Will the building pre-plans be suitable to a company, and e) Would not a company wait an additional 60-90 days for a building suitable to their needs? Koropchak responded that due the limited . IDC Minutes 12/19/90 Page 2 4. CONTINUED. . amount of 1easeab1e industr a1 space available in Monticello and the related idea was an IDC goal, preparation was completed to create a marketing tool hich is the intent of the request for proposal. The re-p1ans include the joint marketing partnership d between the City and a selected developer to mark~ the concept and the City of Monticello. The three bi ilding pre-plans will consist of variable sizes t r production and office space with internal alteration p~ior to construc~ion time. With pre-plan review and 3Q day TIF notice completed the projected time saved is 30~60 days. Koropchak further responded that she wasn't are of any other city having used exactly this concept, nor does she know if any of the companies that contact d Monticello for 1easeab1e space located in another c mmunity, however, they were unable to consider Montice 10 because of the limited amount of available indust ia1 space. We must remember when a company looks for 1 aseab1e space, they consider location, square footage a ai1ab1e with open span flexibility, time availability, and cos The request for proposal is a new marketing tool wh ch doesn't put the City, HRA, or IDC at a risk since the selected developer will make a $5,000 commitment fee to c ver TIF Plan and Development Agreement preparation cost , the selected developer will select a site and obtain a purchase option on the site. If a development occurs th commitment fee is returned, if no development occurs b fore December 31, 1991 the commitment fee is not ret rned and the request for proposal is terminated. T ue the concept may not attract any developers, however, v ry little is lost in dollars. The important aspect of ma keting this concept is that both the developer and the Economic Development Director have something tangible or concrete to show an interested party; real building plans reasonable lease costs, and in a reasonable available ime frame. . Arve Grimsmo said this mar eting tool is another affirmation of our community's leaders ip and aggressiveness. Chairperson. Johnson agreed the request for proposal was another marketing tool for industrial recrui ment which doesn't put the city on the hook. Mr. Mor ell asked if the IDC should be in the real estate busines? It doesn't appear the IDC will be in the real estate business as the request for proposal is seekint a developer as a joint marketing partner with the developer to select site, draft building and site plans, and commit to a site and to up-front fees. The City will use TIF pay-as-you-go for a lease cost reduction. Dennis Taylor agreed with City should take more tim pushing plans through qui Jay Morrell, stating he felt the in reviewing plans rather than kly. Don Smith acknowledged the . IDC Minutes 12/19/90 Page 3 4. CONTINUED. good questions and discussi cormnents by Grimsmo, Johnso' a motion for the IDC to acc' the publication notice for to Prepare TIF/SPEC Buildin seconded the motion and witi motion passed 11-1, Jay Mo~ nj and in support of the , and Koropchak, he made pt as written and to authorize he Request for Proposal Pre-Plans. John McVay out further discussion the ell opposed. a) Consideration to appoit Selection Cormnittee. The appointed se1ectio select a developer bas in the request for pro Hoglund, Jeff O'Neill, selection will be made thereafter approved by committee to review and d on the criteria outlined osa1 are John McVay, Ron and Shelley Johnson. The on January 18, 1991 and the HRA. 5. PROSPECTS: 1.2 million s ft distribution center - . Koropchak repo three Minnesot for potential company's regi are for the co to the state i site review an regarding the of the communi the company wi Assessments, e the confidenti upon the reque Department of that all conta be made throug with no direct ted that Monticello is one of cities who made the short list ocation of the out-of-state nal distribution center. Plans pany representatives to return late January for a second to visit with existing businesses ttitude and business climate y. The State will assist h job training, Environmental c. Koropchak further encouraged lity of the company's name and t of the company through the rade and Economic Development ts regarding the development the city or Mr. Terrell Towers contact with the company. Four site opt.ons within the Monticello Township and within re sonable distance from the city limits to all w potential annexation and to supply necess ry city public improvements for the development w re submitted to the developers. IDC members a d staff agreed to carefully wave the proposed ncreased traffic impact and the land usage is . Circuit Techn a meeting was business plan for funding, from company logies, Inc. - On November 29th, held at BDS offices and the company's were reviewed, suggestions were made dditional information was requested epresentatives, projections were asked . IDC Minutes 12/19/90 Page 4 5. CONTINUED. . . to be revised, Resumes were companies inte availability 0 pre-bank appli and plans to proceed were discussed. quested, along with eommitment letters ested in their services, and the their proposed sales person for ation consultation. from Upon Mr. PeIst ing's suggestion, Ken Maus, Shelley Johnson, and Kropchak met to analyze the project's merits. The g'oup suggested a commitment letter from the salesiperson for designated length of employment wit I the company be obtained, at least five letters 0 commitment from companies interested in their servi 'e/market niche, and at least a two year lease agreement be established. Plans explained by Kdropchak,if the group so suggested to proceed) are to visit tQe local lending institution for them to obtain a prelim nary feel for the start-up business and to get a prelimin ry reading of whether an interest to finance _ th project is there. Thereafter would time and money e spend in preparation of an SBA application and other funding applications. With the obtain d suggested information above, the group indicated a willingness to proceed with the start-up co pany and if the project appears unviable then s op the process. Plans are for M . Pelstring, Leo Adams, Larry Corson, Richard Werners ach, and Koropchak to meet with Wright County S ate Bank and First National of Monticello commercial loan officers. Aroplax - This c businesspresent~ to relocate thef plus previous in Schoen. The com building plans d will visit Monti has been made on The company is a An approximate 2 facility with 20 mpany a forty year old family located in Minneapolis is looking facility. Site location maps ormation was mailed to Paul any is presently having their signed and upon completion ello industrial sites. Contact an Oakwood Industrial site. so looking in the Rockford area. ,000 square foot tip-up concrete 25 employees in being planned. Clar Asso.ciati;!s.' ., - This marketing corporation is loking for a community to help finance and be t e home for a company which produces "touch free" car wash equipment, will employ 30-40 people by 1995, has temporary quarters in the m tro area, will target to five-Six states a d is looking for a lease/option to purchase of a 5,000 sq ft faCility. BDS is analYZing the usiness Plan. . IDC Minutes 12/19/90 Page 5 5. CONTINUED. Federal Cartrid e - Koropchak contacted the company fo11owi g information that the company may have scaled back the project size and is anticipating a ate1ite branch. The company reported that ti ey had searched out various sites for potential relocation, however, with the expense to e10cate the company and its employees and ,ith the incentives provided by the City of Anoka to remain at its present location, the ompany presently has decided to stay in Ano a. Cardinal GI - he company is presently not seeking a relo ation site as the company has a renewed thre year lease. 6. CONSIDERATION TO HEAR BRE ISITATION FOLLOW-UP. . Koropchak reiterated the e closed agenda information stating that 16 BRE surveys were c mpleted and returned, 11 BRE visits were made, and 3 companies didn't respond to the surveyor visit. Three businesses willing t meet after the first of the year are Sunny Fresh, Jone' Manufacturing, and FSI. Tabulation of the survey results have, 't been completed at this time. Koropchak reported that th country's economy hasn't appeared to affect our industrial b sinesses at least at this point, and she sees a great possi ility of up to three major expansion by local industries in the next three to five years. 7. OTHER BUSINESS. EAS Metr has rece costs fr company. should b Phone - Koropchak reported she ved a copy of the projected EAS m Bridge Water and a metro phone Established EAS costs for Monticello available by the end of February. 8. ADJOURNMENT. The IDC meeting adjourned at 8:00 AM. ~ ~ "'-o-~..9-~ Ollie Koropchak Executive Secretary .