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IDC Agenda 05-04-2004AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Tuesday, May 4, 2004 - 7:00 a.m. Academy Room - 505 Walnut Street MEMBERS: C air Tom Lind uist Vice Ch~j~n Olso Mary Barger ~i a er, Dick Van Allen, TomJOllig, on Robert ~ ike Benedett Barb,$e~rwientek Kelli Huxfor om Feas u, Lynne ~dhl, Don,~P'omanri, and aul Kleinwac e . COUNCIL LIAISON: Mayor Bruce Thielen. STAFF: Rick Wolfsteller eff O'Neill, John Simola, Fred Patch, an Ollie I oropchac. IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to create jobs in the City of Monticello, Minnesota. 7:00 a.m. 1. Call to Order. (Please read the minutes and information prior to the meeting.} ~ 'oo 7:05 2. Vote to approve the April 6, 2004 IDC minutes. Y-'a ~J d ~M a 7:08 ~~ 3. Follow-up and. discussion of the City Council action to authorize a purchase ~,~,~_ ~.N`' ~~ agreement for acquisition of industrial land. Ytort' 4c'~ ~~~~~.~~,,.,~~" ~ ~ Follow-up of Industrial Small Group meeting of April 14, 2004 ~ a N*~' ~;;, > "' 13. Purchase Documents finalized and sent to Chadwick, April 27, 2004. ~~,~'~ Loo 'ng for response by ay, 10 2004, Counci( meeting. ~`°-"`°~ ~' 7:38 4. City Updates: ~ v~-~.~.~c,~, - ~-~-~0. ~o `u~"~ ~~'"~`'`n' A. Annexation. ~ ,Q ~ ~ F.,.l~ ~ ~c~ ~'° °~-a B. Meeting of city officials to set 2004 Council's Community Vision & °~~ Governing Policies. d ~ 1v~~9oE$ ~ ~ C. ~ Pro~pose~daI~9~and Cow Rd 18 interchange an~ -94 re-~l~gnmen~~~ 7:52 5. Reports: A. Economic Development Report - Koropchak. B. BRE Visit, Aroplax Corporation, May 6, 9:00 a.m. ~ e~~' 8:00 6. Review the draft copy of the May 4, 2004 Planning Commission Agenda for industrial related items. Discuss and vote on an IDC position or action if necessary. / ,_,~r 8:10 7. ~ Other Business. 0~ ~ ~,p A. Chamber Updates - Feaski -Chamber Go1~ou~ng~T~rsday, ~ay~2o~~ ~ ~„~' -~? ~ 2004. '~''"'"'a c'y,.' ~,~- - Qi~no~''`' B. Next IDC meeting, Tuesday, June 1, 2004. 8~:`1''S 8. Adjournment. ` ~ ~ ~ ~ ~ ~~` • MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Tuesday, April 6, 2004 - 7:00 a.m. Academy Room - 505 Walnut Street MEMBERS PRESENT: Chair Tom Lindquist, Vice Chair Dan Olson, Mary Barber, Bill Tapper, Dick Van Allen, Tom Feaski, Lynne Dahl, Don Tomann, and Paul Kleinwachter. MEMBERS ABSENT: Tom Ollig, Don Roberts, Mike Benedetto, Barb Schwientek, and Kelli Huxford. COUNCIL LIAISON ABSENT: Mayor Bruce Thielen. STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak. IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to create jobs in the City of Monticello, Minnesota. 1. Call to Order. (Please read the minutes and information prior to the meetina.~ Chair Lindquist called the IDC meeting to order at 7:00 a.m A. Welcome new IDC members Don Tomann and Paul Kleinwachter. Chair Lindquist welcomed new members Don Tomann, UMC, and Paul Kleinwachter, First Minnesota Bank. The existing members introduced themself noting their respective employment association. 2. Vote to approve the March 2, 2004 [DC minutes. Bill Tapper made a motion to approve the March 2, 2004 IDC minutes. Seconded by Dick Van Allen and with no corrections or additions, the minutes were approved as written. Follow-un and discussion of the Citv Council action to authorize a purchase agreement for acquisition of industrial land. A. Final draft review of the Purchase Agreement between the City and Chadwick b Small Industrial Group prior to Council meeting>. Schedule date (April 7. 8, or 92 Prior to the Council receiving the final draft of the Purchase Agreement for action, the Small Industrial Group's intent is to review the documents. Wolfsteller noted he had met with Chadwick about three weeks ago. Since that time, the attorneys have been conversing about the extension of Chelsea Road (when and how to pay for). Hopefully, those negotiations are finalized for Council consideration on April 12. The City agreed to change the closing date from November 1 to June 1, 2004, with a reduction of interest ($76,000 savings) and agreed to change gravel mining termination date from May 1, 2005 to November 1, 2005, again with a reduction of interest ($3,792 savings). Members asked about a grading plan for the mining operational area? The Purchase Agreement includes a provision addressing mining operations: ``Within 120 days of the cessation of the mining IDC Minutes - 04/06/04 operations, Seller, at its sole expense, shall supply adequate fill material and will grade the mining site pursuant to a grading plan as approved by the City's Consulting Engineer.'' Members then asked about the status of the zoning? At this point, the 60 acres along I-94 have been annexed and a concept PUD was approved by Council in May 2002 which allowed for I-lA uses with some additional uses. In November 2003, the Planning Commission agenda included a request for concept PUD approval for residential and industrial uses; however, the applicant, Otter Creek LLC, withdrew the request. Since no follow-up action on the PUD has been requested since the Council approval of May 2002, the previous motion becomes null and void after six months. B. Council action to approve and authorize execution of the Purchase Agreement between the City and Chadwick. April 12. Wolfsteller noted he has not seen a final Purchase Agreement. Assumption is the item will be on the April 12 Council agenda. C. Small Industrial Group, City Planner Consultant, and City Planner meeting to discuss zoning and covenants. Until approval of the Purchase Agreement, this said meeting is premature. 4. City Updates: A. Annexation. Wolfsteller reported a mediation meeting is scheduled for tomorrow, April 7, at 5:00 p.m. in the Community Center. An outside mediator goes between the two separate rooms occupied by City representatives and Township representatives, respectively. Should an agreement not be reached through mediation, the respective agencies would need to prepare for a court case this summer. An administrator law judge would make a ruling in December. Either party could appeal the ruling. B. Meeting of city officials to set 2004 Council's Community Vision & Governing Policies. No update. C. Proposed I-94 and County Rd 18 interchange and I-94 re-alignment. Wolfsteller reported from the Federal level and following an inspection of the I-94 RR bridge, the report indicated no immediate structural concerns and recommended re-decking and painting the bridge. MNDOT has yet to determine their participation in the interchange costs (ramps and land acquisition.). Wolfsteller estimates a cost of $12-$15 million, then the question becomes how to pay for it. Tomann suggested the need for a hotel like Radisson or Hilton to accommodate business clients/guests of the industrial companies. 5. Reports: A. Economic Development Report -Accepted as written. 6. Review the draft copy of the April 6, 2004 Planning Commission Agenda for industrial related items. Discuss and vote on an IDC position or action if necessary. No action was required of the IDC as no industrial agenda item for April 6 Planning Commission. 7. Other Business. A. Chamber Updates -Feaski -Chamber Golf Outing, Thursday, May 20, 2004. Feaski noted his recent conversation with Representative Bruce Anderson relating to the 2003 Legislative request by the HRA to extend the 5-year activity rule for Downtown TIF District No. 1-22. The Chamber, supporting the efforts of the HRA, forwarded 150 pro-TIF extension e-mails to Senator Ourada and Rep Anderson. Yet, Anderson opposed stating four businesses were 2 opposed. Susie and Marie are busy starting a division of the Chamber, Minnesota Visitor's Bureau; Chamber Golf Outing, May 22, Silver Springs; and Chamber Industrial Banquet, tentatively IDC Minutes - 04/06/04 scheduled for June 22, Monte Club. B. Next IDC meeting, Tuesday, May 4, 2004. 8. Adjournment. Bill Tapper made a motion to adjourn the IDC meeting. Seconded by Dick Van Allen and with no further business the meeting adjourned at 8:30 a.m. Recorder • • IDC Agenda - 05/04/04 SA. Executive Director's Report: a) WSI Industries, Inc. -The EDA approved a $350,000 real estate acquisition loan for acquisition of the vacant Remmele Engineering building located at 213 Chelsea Road. See job and wage levels. The closing is expected to take place on May 3 at the IDS Center. The company currently leases space in Osseo and expects to move their operation to Monticello over the next six months. The company does precision machining and assemblies specializing in avionics and aerospace, computer, defense, power systems, medical, etc. Mike Pudil is the President and CEO of WSI and previously was vice president of Remmele Engineering when they constructed the facility here in Monticello. I've visited and toured the Osseo facility two to three times within the last eight months. The reason for the past confidentiality: this is a public held company and the shareholders had to be notified of the planned acquisition first. b) Release of Assessment Agreement -With the sale of the Remmele building, Dorsey & Whitney requested of Release of the Assessment Agreement which in this case notes the Bonds debt was paid. Kennedy & Graven prepared the document for the closing which was executed by the HRA Chair. c) TIF District No. 1-22 Bonds - Wolfsteller and Koropchak are working with Ehlers and the HRA Attorney relative to the refinancing of the temporary bonds. d) Golf Outing Gratis Invitations - At this point, I've received 15 "yes" and 8 "no". Deadline date is May 6, 2004. e) Job and wage levels survey - I had a great response on the survey for job and wage levels so when things slow down a little, I'll tabulate and complete the report. f) Industrial Land Purchase -The final Purchase Agreement documents were forwarded to Chadwick on April 27. The seller has til May 10 to respond. This for purchase of approximately 120 acres of land for industrial development. g) EDA Annual meeting -The annual report indicated a cash balance of $575,000 available for industrial development. This is after the disbursement of the WSI loan. h) County Partnership -Marketing the Partnership at the Albertville and Clearwater City Councils in May. i) Coffee Roasting -Looking to build a 4,000 - 5,000 sq ft steel building. Some of you may remember visiting this company in Minneapolis when they were a part of Red Wing Foods. They branched off and leased space in Buffalo. Deal from Maple Lake -TIF write-down of land costs $18,500 per acre (up-front) and company pays for assessment of $60,000. j) Production Stamping -Will try again to line up a tour for the IDC. k) BRE Visit with Aroplax on May 6, 9:00 a.m. r • G~lL7/Lk`JrJ4 1b:1~ .b,34Lti4.~t7t7 i,;.. i HUKUb NUMtKlI; I UUL ~S-'- _t f~.i Q~ ~~/' ' • DEVELOPMENT SERVICES Phone: (763) 271-3208 Economic Development Director Pax: (763) 295-4404 Email: oUie koronchak'u~ci monticello.mn.us CITY OF MONTICELLO, MINNESOTA JOB AND WAGE LEVEL -EXISTING JOBS Please indicate number of current employees at each level and indicate the corresponding benefit level. Number of Jobs Hourly Wage Hourly Value Level of Voluntary Benefits(Sl G>rc.STtMM'61~~ Full-time • ~_ 7 11~ ~~ •~osswnct.2oo~ Part-time (Excl. benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.00 to $11.99 $12.00 to $13.99 $14.00 to $15.99 $ l 6.00 to $17.99 $18.00 to $19.99 $20.00 to $21.99 $22.00 and higher ~ 3. so s 3. !.b ~ ..~fo8 ,~ 3.7(0 j 3, s ~ y, o0 Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-440~t Office of Public Works, 909 Golf Coursc Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272 ~~ ~ . AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, May 4th, 2004 6:00 P.M. (DRAFT) Members: Dick Frie, Richard Carlson, Rod Dragsten, Lloyd Hilgart, and David Rietveld Council Liaison: Glen Posusta Staff: Jeff O'Neill, Fred Patch, Steve Grittman - NAC, and Angela Schumann Call to order. 2. Approval of the minutes of the regular Planning Commission meeting held Tuesday, April 6th, 2004. 3. Consideration of adding items to the agenda. 4. Citizen comments. 5. Public Hearing -Consideration of a request for a conditional use permit allowing fora 728 square foot detached accessory use structure in an R-1 district. Applicant: Shawn Leach 6. Public Hearing -Consideration of a request to amend an existing con ' ' ermit, allowing for open and outdoor storage space as an accessory use in I-2 district. ~~ Applicant: Simonson Lumber 7. Public Hearing -Consideration of a request for a simple subdivision to create two buildable lots in an R-1 district; a request for a variance to create asingle-family lot of less than 12,000 square feet in an R-1 district; and a request for a conditional use permit allowing for an accessory use structure to exceed 10% of the rear yard area. Applicant: Darren Klatt Public Hearing -Consideration of a request for variance from the 24' maximum driveway width for single family residences in an R-2 district. Applicant: Wayne Spicer 9. Public Hearing -Consideration of a request for a development stage planned unit development and preliminary plat in an R-2 district, and a request for variance to the . required setbacks. Applicant: Richard Carlson Planning Commission Agenda 04/06/04 • 10. Public Hearing -Consideration of a request for a conditional use permit for a concept stage planned unit development in a B-3 district. Applicant: HolidayStation Stores 11. Public Hearing -Consideration of a request to amend the R-lA zoning district design standards. Applicant: City of Monticello Plaxming Commission 12. Public Hearing -Consideration of a request to re-zone a 59.14 acre parcel from Agricultural-Open Space (A-O) to Regional Business (B-4). ~'ww~-Q-- Applicant: City of Monticello .~~.~. 4 13. Planning Staff Update -Swan River Montessori School 14. Planning Staff Update -Home Depot 16. Adjourn. • -2- THE BUSINESS JOURNAL I twincities.bizjournals.com rr~ Mortgage!! Interest only for 10 years, 25 year term Financial flexibility & savings Low, low single digit interest rate Refinance or purchase G Jumbo mortgages to $1 million ~V/IIS~I~SIPPI I per"Fee r' ' ,. April 30, 2004 City plans 120-acre industrial park to bring Monticello jobs able for industrial development. Corrections BY SCOTT D.SMITH ~~ ~ STAFF REPORTER °_ ,r ftfissFss~pp+ ~,~~r ` ~,~,, Monticello city leaders think the private mar- ~,,, , c ket isn't amacting enough industrial jobs, so the lan to o e 120 i tri d l k 37. ~~ ° u~,,, a ~ y p p n a -acre n us a par ~rs y ~ that will compete with nearby land owners. ~s ' °~? The leaders are in negotiations to purchase ,~ ~ the acreage of raw land at the southwest r' , quadrant of the intersection of Highway 25 ~ and Interstate 94. Weinand could not be reached for comment. "We would be in a better position if we had To counter a "monopoly" on the industrial our own land to market rather than relying on land in Monticello, Wolfsteller said, city lead- the private market,"-said Rick Wolfsteller, city ers want to open up the market to lure com- administratorfor Monticello. panies to Monticello. City leaders want to attract well-paying, Charles Pfeffer, president of Maple Grove- industrialjobs before homeowners and retail- based Pfeffer Co. Inc., has brokered land for the ers consume all its land. Monticello Industrial Park for about 12 years. "We don't just want to be a bedroom com- Pfeffer would not disclose the owner's name. munity with a Target Pfeffer said city store," Wolfsteller said. ~~ We would be leaders can spend tax in a b tt r It is not uncommon e e dollars on a real estate for cities to purchase osition if we had our own land to Play if they want to, p land for industrial. but he added that parks. Example s in the market rather than re lying on the private 'maybe the city coun- p north metro olitan cil should evaluate the area include Elk River, market We don't ~ust want to be a need for assets that . Anoka, Buffalo and ~ would serve a broader Big Lake. If the deal goes bear00m COmmunlty range than to do a Wlth a Target Store, speculative purchase." through, the city plans The Monticello to spend about $3 mil- Industrial Park has lion to buy the 120 Rick Wolfsteller seen some sale activity acres owned by Iohn City administrator, Monticello in recent years, Pfeffer Chadwick of "'" said, but industrial Bloomington-based development has been Otter Creek, Wolfsteller said. The city would slow there, like in the rest of the metropolitan spend another $3 million for infrastructure, area. including roads, sewers and water service, he However, Monticello is along the rapidly said. growing I-94 corridor between Minneapolis Chadwick would not sell his entire parcel. He and St. Cloud. It is seeing strong demand for is retaining a 40-acre strip of land fronting I-94. retail projects at the intersection of Highway By starting its o~nm industrial park, 25 and I-94. Several big-box retailers includ- Monticello will compete with the Monticello ing Target, Wal-Mart and Home Depot are Industrial Park, 40 acres of industrial land considering Monticello, and Wolfsteller within a mile of the city's proposed develop- expects that within three years the city will ment. The city identified Shawn Weinand, of have some of those stores located in that Osseo-based Progressive Development & area, he said. "They're all interested in Construction, as one of possible several Monticello; we meet with one of them almost investors in that property. Weinand also has every other day" an interest in another 30 acres, which consti- tutesnearly all of the land in Monticello avail- ssmitli@b~joumals.com ((612) 288-2107 The April 23 article "Savvy duo sparks Meditech" listed Meditech Communications Incas Web site address incorrectly. The correct address is www.gomeditech.com. The story also misspelled the name of one of Meditech's clients. The correct