IDC Minutes 04-20-1989
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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".
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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.
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IDC MINUTES - 4/20/89
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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