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IDC Minutes 04-20-1989 . MINUTES . MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE Thursday, April 0, 1989 - 7:00AM City Hal MEMBERS PRESENT: Vice Chairpe Mielke, Lowe Grimsmo, Ron. Lungwitz, Ke son Don Smith, Jim Kruger, Linda 1 Schrupp, Dave Peterson, Arve Hoglund, Harvey Kendall, Dale Maus, and Ollie Koropchak. MEMBERS ABSENT: Dennis Taylo , Jay Morrell, Shelly Johnson, Dale Pogatch ik, and Rick Wolfsteller. STAFF PRESENT: Jeff O'Neill GUEST: Tom Dolly 1. CALL TO ORDER. Vice Chairperson Don Smith called the IDC meeting to order at 7:02 AM. 2. TOM DOLLY: "MONTICELLO C UTER PARKING LOT". . Vice Chairperson Smith welcomed and introduced Tom Dolly to the IDC. Mr. Dolly pr~sented each IDC member with a written proposal outlinng the City of Monticello relinquishing the "Monticello Commuter Parking Lot" (at the south westerly co .ner of intersection 1-94 and Hwy 25) in exchange f r Dolly/Dragsten property (east of Silver Fox and s uth side of Oakwood Drive). The proposal included the improvements to the Dolly/ Dragsten property with pr of of funding, in the form of cash in the amoun of $100,000 deposited in an escrow account or a Le ter of Credit in the form of a Construction Loan Co itment. Also, the proposal included benefits to the ity through projected tax increment estimates and e ployment revenues over 30 years. Mr. Dolly informe the IDC that he has presented the proposal to the City ;ouncil. City staff was further researching MDOT' future plans of the interchange. Additonally, the title of property was never conveyed from Wright County to the City of Monticello and the title appears to have att ched restrictions and/or covenants. At this time he city or council has taken no action. The IDC discu sed the potential of MDOT construction of an interc ange at the NSP Plant location or a County Roa 118 easterly on ramp and a westerly off ramp. Mr. 0 Neill informed the IDC that MDOT was not interested, ost estimates was $200,000 not including 20% enginee fees or land cost therefore project cost would be fro public and private funds for the development of th County Road #118 ramps. . IDC MINUTES - 4/20/89 . 2. CONTINUED. Regarding MDOT future pIa B for a NSP location ramp is the intent of design for a freeway is to create through traffic with ramp s?ace intervals of 10-20 miles therefore see no._t~eai future plans f, r a ramp" city staff / council felt the need-to reFain thj.commuter parking lot for potential use by MDOT, ho~ ver, the potential developer would consider a 20-30 yea lease commitment. The IDC considered that the existi g commuter lot is not developed to it's full cap city and that the city has the first right of refusal to any potential developer if the councils decision w s to market the property. Vice Chairperson Smith str ssed the importance of equality and fairness. Th IDC appreciated the opportunity to hear of the proposal, m de no recommendation to proceed, suggested city staff research additi nal information from MDOT, research the potential to lease and to keep the IDC informed of any development. 3. APPROVAL OF THE MARCH 9, 1 89 IDC MINUTES. . Dale Lungwitz made a motio to approve the March 9, 1989 IDC minutes, seconded by H rvey Kendall and with no corrections the minutes we e approved as written. 4. REPORTS OF PROSPECTS: UNDISCLOSED COMPANY - No f nal decision for site location by company. The project f nancing proposal as prepared by Business Development Se vices was delivered. CEDAR LAKE ENGINEERING - c rrently the company has a purchase agreement on an e isting building in Maple Lake. (cheaper to purchase than uild). existing building in CUSTOM SHEET METAL - consi Silver Creek. FOOD PROCESSING - still in selection yet. in Monticello, no site NSP - development agreement being drafted, abstract needs to be subdivided and updat d. CONSTRUCTION FIVE - no pIa development in year 1989. . GARMENT SEWING MANUFACTURE - 30 second income jobs, looking for 20,000-50,000 square feet existing building. Responded to the undisclosed company y mail with requested information and contacted a local real state agent for availability of existing buildings and loca investment. 4. CONTINUED. . TITAN RECREATION PRODUCTS Big Lake was affering a fr and TIF). Karapchak is in patential use af the RLF a Manticel1a facility and ex additiana1 10 new jabs. IDC MINUTES - 4/20/89 Dale Lungwitz reparted that e building (use af IR bands cantact with the campany far d TIF far restaratian af existing ansian af 5,000 sq ft. Patentia1 Bandhus Carparatian - pate tia1 add an ar industrial park expansian, interested in t e RLF. Cantact persan is Dick Van Allen. 5. CONSIDERATION OF UPDATE ON THE EDA AND THE GMEF. Mr. O'Neill reparted that he City Caunci1 had reviewed and studied the Greater Mo. ticel1a Enterprise Guidelines with the fa11awing carrectians made: 1) Jab creatian to. be tap priarity, 2) equity requirement af 10%, and 3) and reductian af EDA maxi un to. 30%. Karapchak said the next s to. ha1d an arganizatiana1 institutians, and market laca1 industries. 6. CONSIDERATION TO ENDORSE RAMP AT INTERCHANGE 118. . eps wau1d be far the EDA cammissianers .meeting, meet with the lending he pragram to. the existing Mr. O'Neill reparted that Jim Bayle has appraached him abaut the patentia1 a a Caunty Raad 118 easterly an ramp and a westerly af ramp which wau1d apen up and create mavement in th area. Cast af the praject is appraximately $260,000 inclusive af engineer fees and with free land. It ~ s suggested that passib1y part af the praject cauld be financed by Tax Increment Finance if far example a att1e campany wau1d 1acate in the industrial parks w ich wauld generate sufficient increment to. assist with ramp cast in additian to. reduced land casts. Dale Lungwitz felt public abjectian af the use af TIF to. ass'st a land develaper. It was the IDC suggestian to. re earch additiana1 infarmatian an traffic patterns in t e area af Hwy 25 and Cty Rd 75. The tata1 cast af n w camplete interchange is 1.5 mil1ian da1lars. 7g CONSIDERATION OF AN AIRP Mr. O'Neill reparted tha expand current airpart a are far a 2,500 to. 5,000 runway wauld require the tawnship raad at Hightwa . the awner has two. airpart designs: create new airpart. Plans faat runway and to. create a new purchase and re1acatian af the 25, this to. accammadate the . 7. CONTINUED. IDC MINUTES - 4/20/89 common wind direction. Second design would be for the City to commit a percentage of f nancing, split maintenance cost, and retain revenues created through lease hanger space and gas pumps. However in both designs the airport would require municipal ownership. It was suggested that the issue not be bought to the city council attention at this time until further research is completed and Mr. Hallilu continues to talk with surrounding property owners for potential willingness to sell. Mr. O'Neill will write a letter to MDOT Aeronautic Department stating the City and the IDC is supportive of the airport creation/expansion inclusive of required studies. Arve Grimsmo expressed his feelings that the IDC should drop the issue and sees it as a dead horse because of previous attempts. The general consensus of the IDC was supportive of Mr. O'Neill's letter and suggested the letter be vague. 8. CONSIDERATION OF THE BROCHU 'E DESIGN PROGRESS UPDATE. Mr. O'Neill informed the IDC that Dan Carlson, Ken Maus, Al Larson, Steve Henning, an he had met about eight weeks ago and discussed the approach for a brochure design: objectives, extensive thinki g (community assets and constaints), and marketing strategies. It was suggested by the IDC to talk with Chai person Johnson to consider appointing a sub committee f om the HRA. EDA, Planning Commission, IDC, and the Cha, ber. . 9. CONSIDERATION OF EXTENDED AR A PHONE SERVICES UPDATE. Koropchak reported that Joy wenson and Elaine Norin had expressed their time hai been deleted in collecting signatures for interest in e tended area metro services and encouraged the businesse to participate. The IDC has several choices of 1 drop the interest, 2) start over collecting signat res (15% of the total 295 exchanges or 600 signatu es whichever is less), 3) collect additional signat, res (approximately 100), and 4) request City Council ndorsement of extended area phone services. The Ch mber hasn't been envolved with this project. The IDC eneral consensus was to request City Council endorse ent and obtain the necessary required interest signatures. If need be hire a person to collect the signat res ($100-$200) because it is in the best interest 0 the city and the IDC. 10. CONSIDERATION TO SET A DATE OR THE JOINT COMMITTEE MEETINGS. . Monday, June 5, 1989 was set as the date for the joint meeting between the IDC, EDA, HRA, Panning Commission, City Council, and City Staff. Meeting wil be held at the Fire Hall, IDC MINUTES - 4/20/89 . 10. CONTINUED. Koropchak is to make arrang ments and notify other commissioners of the meeting date. 11. OTHER BUSINESS. None. 12. ADJOURNMENT. The IDC meeting adj ourned a 8: 35 AMi''L ~ ~<J\O~ Ollie Koropchak IDC Executive Director . .