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IDC Minutes 08-16-1990 . MINUTES MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE Thursday. August 16. ;1990 - 7:00 A.M. City Hal MEMBERS PRESENT: Chairperson Seldon Johnson. Vice Chairperson Don Smith. Ro Hoglund. Arve Grimsmo. Jay Morrell. Lowell Schrup . Bob Dawson. Harvey Kendall. Tom Pogatchnik. D nnis Taylor. John McVay. and Tom McDermott.i MEMBERS ABSENT: Ken Maus. Dale Lungwitz. Dave Peterson. and Linda Mielke. STAFF PRESENT: Rick Wolfstelle. Jeff O'Neill. and Ollie Koropchak. 1. CALL TO ORDER. Chairperson Sheldon Johnson called the IDC meeting to order at 7:03 AM. Excusing himself f om the meeting. the Chairperson turned the meeting over to Vice Chair Don Smith. 2. APPROVAL OF THE JULY 19. 199' IDC MINUTES. Ron Hoglund made a motion minutes. seconded by John as written and filed. approve the July 19. 1990 IDC ay. the minutes were accepted . 3. CONSIDERATION TO HEAR REPORT. Treasurer Ron Hoglund report d that the IDC balances to date were Wright County State Ban checking account. $150.70; money market. $1.851.59; and Security Financial Banking & Savings money market. $4.061 29. Total $6.063.58. Harvey Kendall made a motion to acc pt the treasurer's report as given. seconded by Arve G imsmo. the report was filed. . 4. PROSPECTS: Jeff Easte rises. Inc. - Koropchak reported that Shelly Johnson. Ron Hog undo Jeff O'Neill and herself had visited the Eastey operation, in Rogers on July 20. The group viewed the shrink wrap machi e and tunnel. met the principal owner's Jeff and Salley East y and Attorney Charlie Rogers. The company is interested in'leasing 7.200 sq ft from Jay Morrell for manufacturing of'rebuilts and in-house processing rather than farming out. Th owner's look at Monticello as a possible location for t eir total operations. Curre"atly th(!y own the facil ty in Rogers iriwhich they hesitate to expand because of the high HennCty 'taxes and tomailltain a better control of the company's finances at a 'ime at potential rapid growth. Attorney Rogers was to meet ith Jay Morre1 to finalize the lease agreement. Plans are 0 have the financial package and loan request at the requeste lenders office this week. Time table according to Pat Pelst ing is thirty day review by Bank and SBA. and sixty days from the current date for fin?l approval from the Greater Monticello nterprise Fund and the Minnesota Imitative Fund. IDC Minutes 8/16/90 Page 2 . 4. CONTINUED. Lake Tool - Korq chak reported Jeff O'Neill and herself had visited the Lake Tool company in Rogers on July 24. The company does custom tool'ing for injection molding. They met with Eric Bondhus, one of three owners, and toured the facility. Currently, they 1 ase the 4,200 sq ft with a agreement expiration of summer '91. Their operation is of very clean nature, all in-house equiPm; t paid for, and are looking to invest in a facility within in a community which offers strong amenities and quality of life. The company is interested in the old Fire Hall and will ook at options to construct a new 5,000 sq ft facility in the industrial park. Koropchak ran preliminary numbers with the use of TIF pay-as you-go assistance, and Eric and she toured the industrial park for potential site selection. The company is Looking at other sites in Elk River and Maple Grove. Bio Medical Facility - Koropchak reported she had followed up with the July IDC motion "recommending the IDC be open to hearing the educational presentatio by Star West, with a clear understanding that the IDC is not endorsig a Monticello site location." Upon calling Mr Wally Wilbur on July 24th, he said the company had a purchase agreement on some property near wet lands and that he would pass the IDC motio information along to Star West for consideration if the sale did not materialize. . American Window and Door Co - Koropchak reported she has tried to reach Mr. Rick Leo ard of the American Window and Door Company to assist with the location of available industrial space for lease. This a recommendation of the July IDC meeting along with the lack of interest to cons ide financial assistance for the company because the company indicated it was going to file bankruptcy. . Advanced Resources - Koropch k reported in the last month the city has received inquiries for i dustrial lease space for 15,000, 25,000 and 30,000 sq ft. Wi h the assumption that the Jeff Eastey Enterprises leased 7,200 sq t from Jay Morrell, this means Monticello has virturally no: industrial space which on one hand is good and on the other ha~ may limit our recruitment of new industries. Koropchak furth r reported she had contacted Pat Pelstring of BDS, Inc. on the ability to use TIF on a leased facility with only all the plans in order, not the building constructed. Mr. pelstringstated the TIF Plan can to drafted, distributed to the jurisdictions, public hearing set, held, and tabled until such time we hd a committed project. The TIF plan would not be adopted until committed project because an adopted plan starts the clock on the life of a district. Other things to do are 1) Find a willin developer to prepare preliminary site plans, landscaping, drainage, and parking plans for review and approval by our Building Inspector. 2) Find a developer willing to find and commit to a pie e of industrial property. 3) Find a developer willing to use IF pay-as-you-go with a direct write-down of lease cost. IDC Minutes 8/16/90 Page 3 . 4. CONTINUED. Advanced ResourceSi- The goal is to have the major development work completed so e can offer a leased building in the time it takes for construe ion (90 days). Tom Pognatchnik saw this as a otential risk as the economic climate is not good right now, however' with a reduction in the lease it may have some merit. Koropcha reported in her conversation with Advanced Resources that the av ilability of industrial space in Greater Minnesota has greatly een reduced since that of five/six years ago. Vacated school bui ding are available however not conducive to industrial use, Vi cated auto dealership may be conducive depending on location, and vac ted implement dealership are conducive to industrial use. The IDC re ommended Koropchak pursue the idea and encouraged her to con. act Gae Veit, Winkelman Construction, Miller Construction, and Vaugh Veit as potential developers. Yeager, Pine & Mundale - This a consulting business representing a client who is interested in n industrial site location in Monticello. The business has requested the city complete an eight page questionaire of which questions pertain to nvironmental and quality of life issues. Various community leaders and ity staff answered questions of their expertise. Koropchak tQ nked them and said the questionaire along with the marketing broch re, requested maps, city building and zoning ordiances, etc. will be mailed Monday of next week. . Cargill Feed Mill - Koropchak eported that the company has made their location decision, however, would formally notify communities before their announcement of t eir decision. Koropchak expects the notice next week and did ot have strong feelin~that the location was Monticello as ra.l was a priority. Rick Knutson - Mr. Knutson is a local man who has designed a cable connector which can als be used with a ground stake on a dog leash allowing the dog gr ater accessibility within an owner's yard. He would like to assem le and package the produce in Monticello and is looking for available pace to lease. The product has not been patented. Koropchak has given him various available lease space suggestions and has indcated the city's willingness to write a letter of city support for he Central Minnesota Imitative Fund application if his plans indicate jobs wi 1 be created in Monticello and he has committed dollars for the start-up project (no monetary support from the city). . NAWCO - At the BRE breakfast eld in June, Mr. Steve Lemme, indicated to a few IDC members the pote!tial growth capabilities of the H-Window Company. The company acknowl dges some early mistakes in their marketing efforts and with th hiring of Mr. Lemme as general manager the company saw it's best mon h of profit in July of this year. The companykas expanded their distribution area to the east coast and Denver, and now produce p tio doors and french doors. They believe their capabilities in national growth in approximately three years to be $100,000,00' Mr. Lemme is concerned if the company reaches that goal and with the need to expand the facility IDC Minutes 8/16/90 Page 4 4. CONTINUED. NAWCO - they cou d become land locked if the city would sell any of the three .ubdivided lots to the east of Lots 11 & 12, now owned by t e H-Window Company. If this would be the sitution the company ould need to consider relocation of the entire operation outside of Montice 10. The suggestion was made to have Mr. Tom Hayes draft Right of First Refusal between the H-Window and City of Montice '10. According to Tom Hayes, the city has two options: 1) Right oe First Refusal or 2) Purchase Option. His recommendation was a Rig 't of First Refusal limited to a fixed time. The H-Window Company Board feels it will be in a much better position to make expansion decision in the last quarter of 1991 with the potential growth of '200-300 employment by December 1992. . Jay Morrell made a motion req proceed to have Mr. Tom Hayes with a limited time for respo of Monticello and the H-Windo. presented to the City Council enter into such an agreement. carried unanimously. The co anything to loose. The docum to the council in time for th October meeting. Don Smith w and Mr. Steve Lemme's abiliti enhances our BRE goal. . 5. CONSIDERATION OF BAN UET DATE AND PROGRAM. Koropchak reported Monday, Oc Monte Club, however, she had the banquet guest speaker bec united decision. The IDC rec and invite him to be our gues topic: projected corridor gr industrial, commerical, and r mmending the City of Monticello draft a Right of First Refusal, se to notice, between the City Company. This document to be for authorization of willingness to Seconded by John McVay, the motion ittee felt neither parties had nt will be prepared and presented H-Window Board to review at their oleheartly endorsed the company s. This kind of endorsement ober 29, has been confirmed with the ot contacted Dr. George Karvel as use she was unclear of the IDC mmended Koropchak contact Dr. Karvel speaker with a suggestion of . wth as it relates to Monticello's sidental real estate future. Arve Grimsmo made a motion es ab1ishing the IDC banquet ticket at $75.00 for individual and $25.00 for spouse. Lowell Schrupp seconded the motion which pas ed unanimously. With the 1989- 1990 economic development exp nsions and programs the IDC is anticipating a positive ticke sales year. 6. CONSIDERATION OF FOLLOW-UP CO ENTS TO TAPPER'S AND REMMELE'S RECEPTION AND FUTURE RECEPTIO S FOR THE TIRE SERVICE EQUIPMENT COMPANY, MARTIE'S FARM SERVIC , AND THE JEFF EASTEY ENTERPRISE. The IDC commended the city st ff on the receptions held for Tapper's and Remmele Engineer~ g. They felt the companies were pleased with the recognition as the CEO and Presidents of the companies were present. . The IDC discussed the need for reception versus a moving in 0 retail/commerical. The policy cooperative definition with th a policy to define a ground breaking en house and industrial versus to create a consistency and Chamber goals. The IDC recommended IDC Minutes 8/16/90 Page 5 . 6. CONTINUED. Koropchak contacti Mr. Ray Schmidt for a welcome reception at their facility 0 Chelsea Road, this allowing the IDC to tour his operationl and view his equipment. The IDC will provide a beverage a d cake. Target date for September. Policy criteria to be cons ide at a future IDC meeting. 7. CONSIDERATION OF AN UPDATE oN EAS AND BROCHURE MARKETING STRATEGY. Koropchak reiterated the Monice110 Times article that the traffic study conducted by Bridge Water Telephone Company met the Public Utility Commission's criteri (295) exchange made at least the metro area. The PUC has the study at this time, howe Upon acceptance, the PUC and establish the metro line cos mailed out. At least a majo in favor of extended area se for metro telephone to Monti . Jeff O'Neill reported that t area of western and northwes by SIC codes and for vitalit purchased from BDS, Inc. wit mailed per month. This to calls and thereafter will th businesses. Arve Grimsmo su next printing which is impor and promotion. 8. OTHER BUSINESS. of at least 50% of the area petition .one telephone call per month to not reviewed the study nor accepted er, no stumble blocks are expected. Bridge Water Telephone Company will which will be included with each 295 ity of the returned ballots must be vices to complete the PUC criteria ello. ballot e city will earmark the geographic ern metro suburbs, identify companies to expand. A business list may be approximately 30 teasers being ontrol the time for follow-up telephone new brochure be mailed to interested gested that U.S.A. be added to the ant for international recruitment Arve Grimsmo asked IDC membe s to encourage Ken Maus to consider running for re-election as M yor. Also mentioned was the importance of this year's election with three fifths of the City Council seats being vacated and at this time no c: rrent' _ council member filing for re-election. The regular Chamber meeting ill be held today at noon at the American Legion with Gae Ve"t as guest speaker. 9. ADJOURMENT. The IDC meeting adjourned a 8:35 AM. . ~ ~4\oE\ ~~ Ollie Koropchak IDC Executive Secretary