IDC Agenda 09-07-2004MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, August 3, 2004 - 7:00 a.m.
Academy Room - 505 Walnut Street
MEMBERS PRESENT: Vice Chair Dan Olson, Mary Barger, Dick Van Allen, Mike
Benedetto, Barb Schwientek, Tom Feaski, Lynne Dahl, and Paul
Kleinwachter.
MEMBERS ABSENT: Chair Tom Lindquist, Bill Tapper, Tom Ollig, Don Roberts, Kelli
Huxford, and Don Tomann.
COUNCIL LIAISON ABSENT: Mayor Bruce Thielen.
STAFF PRESENT: 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 meeting.)
Vice Chair Olson called the IDC meeting to order at 7:02 a.m. declaring a quorum.
2. Vote to approve the June 1, 2004 IDC minutes.
Dick Van Allen made a motion to approve the June 1, 2004 IDC Minutes. Seconded by
Barb Schwientek and with no corrections or additions, the minutes were approved as
written.
Follow-up and discussion of the City Council action to authorize a purchase agreement for
acquisition of industrial land.
A. Re-Zoning At the July 12, 2004 Council meeting, the council approved a B-4 zone
and on July 26, 2004, the council approved a Comp Plan amendment for 60+ acres of
Otter Creek Crossing. Koropchak noted the attached recommendation by the IDC to
the Planning Commission.
B. Status of the Purchase Agreement.
Koropchak noted the Small Industrial Group met with Chadwick, Bilotta, and Bret
Weiss in June and agreed to a new boundary line for the southwesterly approximate
14-acre parcel and agreed the first 35 acres for purchase to be in the far northwesterly
corner along Chelsea Road and near County Road 39. The Council previously
established the Chelsea Road alignment as going through the Rask property. IDC
members received a copy of a map defining the new boundary of the approximate l4
acres as defined by Chadwick. Kleinwachter asked, why the 35-acres to the far
IDC Minutes - 08/03/04
northwest? The reason for the change by the Small Group was due to the new
boundary line of the 14 acres, the City no longer has direct access via the Haul Road to
90t" Street and the most easterly property to the south of Chelsea Road is wet lands.
A new map dated March 2004 was submitted with the Purchase Agreement which was
different from the September 2003 map used for negotiations. Within the new map, the
Haul Road was re-aligned to the north reducing the amount of city owned land to
market at the point of entrance at 90`" Street via the Haul Road and westerly. The City
sees completion of Chelsea Road as a benefit; however, Koropchak noted timing is a
concern as completion of Chelsea Road to County Road 39 needs to be completed for
accessibility and marketability. Things yet to be completed: Purchase of Rask property
by City and execution of Assessment Agreement by Chadwick. Koropchak informed
the committee of conversations with Elk River inquiring into "how Monticello was able
to convince Council to purchase land for industrial development and how financed" as
they have similar situation with private land owners and Big Lake recruiting industries
from Elk River due to reduced land costs. Koropchak reported she's heard Big Lake
has presented an attractive package to recruit Dahlheimer Distribution. City of
Cambridge is now marketing 55-acres of a City owned industrial park. They received
Federal funding for infrastructure and have JOBZ designation. Dick Ilan Allen made a
motion recommending the Small Industrial Group lobby Council members to
request WSB, Inc. and staff to place the closing for the acquisition of the
approximately 120 acres of Chadwick property as high priority completing
necessary negotiations for Rask property and Assessment Agreement and setting
a closing date of September 1, 2004. Paul Kleinwachter seconded the motion and
with no further discussion, the motion passed unanimously. Reasons for motion:
Recent re-zoning of approximate 120-140 acres of industrial land within City limits to
commercial (Dahlheimer/Bondus, Monticello Market Place, and Chadwick), limited
amount of small parcels for sale, and neighbor community recruitment of Dahlheimer
Distribution.
C. Discuss letter from United Properties for recommendation.
Koropchak noted she had accompanied United Properties in touring various sites for
future industrial development much the same as the Small Industrial Group had done.
United Properties came to the same conclusion that the Chadwick property makes the
most sense and several times mentioned of their interest to partner with the City. The
letter offers to market and develop the property, serve as an consultant, or purchase the
Chadwick property. Koropchak noted she received a phone call from United
Properties on August 2, 2004, relative to an update on the purchase of the Chadwick
property. The following comments were made by the IDC: The City will fill-up
the park within five years given interest rates and the economy remain favorable,
why increase the city's cost, and a partnership would defeat the initial purpose of
the HRA/IDC goals. The general consensus of the IDC was for the City to move
forward as originally planned to purchase, market, and sell the Chadwick
property.
2
IDC Minutes - 08/03/04
4. City Updates:
A. Annexation.
Koropchak noted no new information since the newly executed Orderly Annexation
documents were submitted to the State Commission for final approval. The city
expects to hear from the State in August/September.
B. Meeting o,_ f city officials to set 2004 Council's Community Vision & Governing Policies.
In the absence of Wolfsteller and O'Neill, no update was given.
C. Proposed I-94 and County Rd 18 interchange and I-94 re-ali ng ment• The Council will
review the finance plan for the proposed ramps and interchange at a special meeting of
August 9 at 5:00 p.m. Benedetto reported that the closing of the County Road 18
bridge for construction of a new 4-lane bridge will take place May-December 2005.
Traffic will be re-routed via a new constructed road extending Meadow Oak Avenue
to County Road 18. Two signal lights are planned to the south of I-94 on County
Road 18 at the ramp/Chelsea Road (immediately) and at School Blvd (future).
D. Commercial/residential developments
In the absence of Wolfsteller and O'Neill, no update was given.
5. Reports:
A. Economic Development Report -Accepted at written.
B. Marketing Subcommittee. Accepted as presented.
6. Review the draft co~y of the August 3, 2004 Planning Commission Agenda for industrial
related items. Discuss and vote on an IDC position or action if necessary.
With no industrial related items on the August 3 Planning Commission Agenda, the IDC took
no action. With the absence of O'Neill, no detail information of agenda items was discussed.
Other Business.
A. Chamber Updates - Feaski reported the monthly Chamber meeting of August 19 will
be held at Silver Springs Golf Course at noon. Susie and Marie continued to work with
the Governor's office for a commitment of the Governor as guest speaker for the
Industrial Banquet. If a commitment is received, it would be a noon luncheon. The
Chamber hosted the Taste of Minnesota luncheon at the Rand Mansion, staffed a booth
at Taste of Minnesota in July where some volunteers put in 18 hours, and participated
in Riverfest. The Chamber sponsors Art in the Park on Saturday and noted the success
of the first-time event at Pioneer Park which included a display of antique cars. This
Thursday event was well attended by Monticello residents.
B. Next IDC meeting, Tuesday, September 7, 2004
C. Request from Don Tomann -Members received a copy of the letter from Don
Tomann, UMC, requesting a leave of absence from the IDC due to health related
issues. Mary Barger made a motion to accept the request for a leave of absence
and requested a response letter be drafted and mailed to Don. Seconded by Dick
Van Allen and with no further discussion, the motion passed unanimously.
IDC Minutes - 08/03/04
8. Adjournment.
Dick Van Allen made a motion to adjourn the meeting. Seconded by Mary Barger and
with no further business, the IDC meeting adjourned at 8:00 a. m.
~~ ~~~
Ollie Koropchak, Recorder
•
s
4
5. Consideration of Executive Director's Report.
IDC Agenda - 09/07/04
a) TIF management items -Within the last month I researched invoices associated with
administrative cost for establishment of TIF District and preparation of Contracts. Attached is
a cover letter to Developers Hans Hagen, Mike Cyr, and Barry Fluth and a summary of their
respective administrative costs noting either a balance due or refund amount.
Decertification and close-out of TIF Districts - I summarized and faxed to Mark Ruff for
input information relative to five Economic TIF District for decertification and/or close-out in
2004. If the five districts are closed, the HRA would reimbursement the County about
$250,000.
Front Porch - As of August 2004, 11 of the 12 town homes within Vine Place have received
certificate of occupancies. By December 2004 per the contract, the developer agreed to the
completion of 18 units. This is by the pay-as-you-go finance method.
b) I met with Mr. Johnson on August 20, he was inquiring about the use of TIF for Blocks 52
and 35. He was informed, the HRA would be happy to look at the use of TIF provided the
project meets the "but for" test and redevelopment requirements and is a viable project. Anew
district would be established which takes about 8 weeks.
c) Landmark Square II -Commercial - Mr. Fluth continues to work on this project. Has
checked in with Planning Department. May or may not appear before the HRA in September.
TOLD D
d
l
l
f
i
l
)
eve
opment - I
e
t a vo
ce mai
with Bob Cunningham for an update on a
Walgreen's project in Monticello.
e) Existing Muller Theater -Have not heard from Mike Muller as to plans for the existing
theater on Broadway. Target date for opening of the new 14 screen theater on Highway 25
South is November/December.
f) Industrial leads -
- Site selection for the larger distribution centers are still active.
- 60,000 sq ft manufacturer, 25 jobs at average of $17.50 per hour. Submitted request for
information in June. According to EDAM, for now the company is pursuing sites with JOBZ
designation from Isanti County to the Iron Range. May not pick one of those eight sites.
- 10,000 sq ft industrial user -looking to build and room for expansion. Not able to find a 2-
acre industrial site in Monticello. Two acre site north of IRTI is sold, three acre to its north has
purchase agreement pending. Checked with Standard Iron and Westlund Distribution as to
interest to subdivide undeveloped five-acre parcels. Either was interested at this time. Otter
Creek Crossing parcel does not fit their time frame.
- 25,000-30,000 sq ft distribution center out of Fridley - I believe is working with Standard
Iron for purchase with lease back to Standard Iron for office space.
- 51,000 sq ft industrial/office condominium facility - 2,400 to 2,700 sq ft bays preferably for
sale. Time frame 2005 or 2006. Marketed Monticello Commerce Center, Otter Creek
Crossing, and Lauring Hillside.
1
•
IDC Agenda - 09/07/04
- Relocation of local distribution company - A proposal fora 60,000 sq ft facility has been
assembled for this relocation project. Timing will be a concern and the proposal includes both
Monticello Commerce Center and Otter Creek Crossing. I expect the 35-acres designated for
immediate purchase by the city will be determined this week by WSB so I can meet with this
company. Big Lake has presented offer.
- Request for Proposal due by Oct 1 - 28,000 sq ft building (existing or to construct), 25 full-
time employees. Wages from $10 to $22 plus professionals. Manufacturing.
- 4,000-5,000 sq ft for lease or purchase -publishing and printing. Referred to Tapper and
Barger.
g) Purchase of Otto Creek Crossing - HRA Commissioner Frie, Wolfsteller, Koropchak,
WSB, and Northwest Associates met with Chadwick and Bowers on August 18. Target date
for closing is September 8 and closing on Rask property September 15. Bret Weiss and I
drove the site after the last meeting, we did not see the seeded area of the completed
reclamation area as indicated by Bowers. The Purchase Agreement states at the sole expense
of the seller, the seller shall supply adequate fill material and will grade the mining site pursuant
to the grading plan pursuant to the "End Use Plan" on file at Wright County. A minimum of 935
feet elevation. At the Council meeting of August 23, the Council approved a joint resolution
requesting annexation of the remaining area of Otter Creek Crossing including proposed city
owned property. Request made by Chadwick.
h) Industrial Banquet with Govenor Pawlenty -Gratis tickets for two sent to businesses who
made large investment in City: WSI, Production Stamping, and Westlund Distributing.
i) Wright County Golf Outing at Wild Marsh September 8: City team of four paid by
Northwest Associates and $235 from City for Silver sponsor. Tee box presentation will be
$50 cash give away for closest guess to a Monticello economic development trivia question.
j) Copy of response letter to United Properties.
k) Letter to Don Tomann.
1) TCDC -Wage and job report submitted by Twin City Die Castings. Average wage is
$18.59 ph and number of jobs is 44.
2
s ~>
August 11, 2004
Mr. George I. Burkards
United Properties
3500 West 80`'' Street
Minneapolis, MN 55431
Dear George:
Thank for your letter of .Tune 25, 2004, expressing the interest of United Properties to be involved with
the City of Monticello relative to the market, development, or acquisition of Otter Creek Crossing.
United Properties success stories are well-known to the City of Monticello and we appreciate your
interest to partner with the City. However, after discussion and feedback from Administrator
Wolfsteller, the Housing and Redevelopment Authority, and the Industrial Development Committee, all
parties agreed to schedule a meeting with United Properties, at this time, is premature.
In the meantime, George, let's keep the lines of communication open for potential development
opportunities.
Sincerely,
CITY OF MONTICELLO
O 9~~ ~ ~, ~ ~ ~.~
Ollie Koropchak
Executive Director
c: Administrator Wolfsteller
Mayor Thielen
• HRA /
V IDC +~
Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
MONTICELLO
u
+`
„~
~..
MONTICELLO
Mr. Don Tomann, President
UMC
500 Chelsea Road
Monticello, MN 55362
Dear Don:
August 9, 2004
5 a>
The Monticello Industrial Development Committee (IDC) hopes, by this time, you are well-on-the-road
to recovery and the results of your rehabilitation program are positive.
Since the IDC did not meet in July, your June 15 letter requesting a leave of absence was not
addressed until the August IDC meeting. The committee members unanimously supported your request
for a leave of absence. Additionally, the members send best wishes for a speedy recovery to both you
and your father.
If I could be of assistance to UMC, don't hesitate to call me at 763-271-3208.
Sincerely,
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
e~ ~--~ eJ ~~ ~, ~ ~ ~
Ollie Koropchak
ExecLitive Director
c: [DC File
i~
_____ _ ______.___._ ___.__ __._.___ __.___._.______ _.,__._r ._.________.---______~___._.___._
Monticello City Hall, 505 Walnut Strect, Suite 1, Monticello, MN 55362 M31 • (763) 295 271 l • Fax: (763) 295-4104
Otifice of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
INDUSTRIAL DEVELOPMENT COMMITTEE
- MONTICELLO, MINNESOTA
August 12, 2004
Dear Monticello Manufacturer:
On behalf of Dick Van Allen, retired employee of the management team at Bondhus Corporation and a member of
the Monticello Industrial Development Committee (IDC), this letter is to explore the interest of local manufacturers
to host a tour of your facility and your interest to tour other Monticello manufacturing facilities. The benefit to the
Monticello manufacturer is to get to know your neighbor and to share product and technology information. The
manufacturers can set their own agenda. There would be no IDC or local government involvement other than to
schedule time and date of tours and send reminders. Each manufacturer would delegate the number and what
employee(s) would benefit most from a scheduled tour.
Please complete the form below and return to Ollie Koropchak, City of Monticello, 505 Walnut Street, Suite 1,
Monticello, MN 55362. Please respond by August 30, 2004. The information will be forwarded to Mr. Van Allen.
Should you have questions, please call me at 763-271-3208.
Sincerely,
INDUSTRIAL DEVELOPMENT COMMITTEE OF MONTICELLO
usu.= \~~~g9~
Ollie Koropchak
Executive Director
******************************************************************************
Please return to Ollie Koropchak, City of Monticello, 505 Walnut Street, Suite 1, Monticello, MN 55362
Yes, we are interested. No, we are not interested
Name of Manufacturer
Contact person, phone number and email address:
DIRECTORY OF MONTICELLO MANUFACTURERS
• 2004
AME GROUP, MONTICELLO PLANT is one of five locations of the AME Group, Inc., Elk
River, MN. The Monticello Plant produces ready-mix concrete.
9694 Fenning Avenue NE - 763-295-3111 -Tom Barrett, Plant Manager.
AROPLAX CORPORATION is a third generation family owned business specializing in precision
~i mold design/building and quality injection molding production. The co any se~rv~ce~s the automotive,
medical, industrial, agricultural and consumer products industries. ~~vv
200 Chelsea Road - 763-295-5002 -Steve Schoen, President and Paul Schoen, Vice President.
www.aroplax.com
B & B METAL STAMPING, INC. is a family owned business which produces quality custom metal
stampings, assemblies, and finishing.
208 Dundas Road - 763-295-6300 -Alan Walter, President.
BONDHUS CORPORATION is a privately owned corporation which manufactures hexagonal steel
hand tools such as the Balldriver and L-Wrenches.
1400 East Broadway - 763-295-2162 -John Bondhus, President. cvcv`v.bondhus.eom
• CLOW STAMPING COMPANY, MONTICELLO, is a distribution facility for Clow Stamping
Company, Inc., Merrifield, MN. The company produces metal stampings and assemblies.
218 Chelsea Road - 763-295-5050 -Rick Clow, Distribution Manager.
CUSTOM CANOPY, INC. is a family owned business which manufactures and erects steel canopies.
219 Dundas Road - 763-295-8478 -Stephen Birkeland, Jr., President.
DOUBLE BULL ARCHERY designs and makes ground blinds for the hunting industry.
1401 Fallon Avenue NE - 763-295-3664 -Brooks Johnson and Keith Beam, Owners.
EDMA COMPANY specializes in short and medium run production machining and wire EDM.
1335 Dundas Circle - 763-295-4500 -Pat Jensen, President.
industry. The company provides affordable electric energy and control product solutions for residential
and small commercial application.
2150 West River Street - 763-295-4138 -William Seefeldt, President. w~~~.electromn.com
t~~~~ d
~~
• 1 ~,
ELECTRO INDUSTRIES, INC. established in 1974 specializes in products for the electrical utility
Manufacturer Directory of Monticello
• FULFILLMENT SYSTEMS, INC. is a premium redemption business service with its headquarters
located in Monticello.
406 East 7 Street - 763-295-2929 -Jack Peach, President.
GENEREUX FINE WOOD PRODUCTS is a privately owned corporation and division of Tappers,
Inc. The company manufactures custom wooden cabinets for commercial and residential use.
212 Chelsea Road - 763-295-4222 -William Tapper and Barbara Tapper, Owners. ~ ~ `~~
www.westlunddistributin
INTEGRATED RECYCLING TECHNOLOGIES, INC. recycles platinum group metals from
~' spent auto catalyst.
9696 Fallon Avenue NE - 763-295-6992 -Steve Budd, President.
KALTEC OF MINNESOTA, INC. is a privately owned technology company specializing in
mechanical design, complex 3-D machining, and business software solutions. 307 Chelsea Road 763-
295-2360 -Brice Kallevig, President. www.lcaltec.com
LINTEX CORPORATION manufactures window treatments for the health care industry.
1463 Fallon Avenue NE - 763-295-3338 -.Jamey Merkel, Plant Manager.
• MONTICELLO NUCLEAR GENERATING PLANT produces electrical power. The plant is
owned by Xcel Energy and operated by Nuclear Management Company, LLC.
2807 West County Road 75 - 763-295-1282 -Tom Palmisano, Site Vice President.
POLYCAST SPECIALTIES, INC. is a privately owned company which manufacturers polyurethane
molds and products.
112 Dundas Road - 763-271.-6600 -Todd Schulz, President -Roy Schulz, General Manager.
www.pol,~specialties.com
PRODUCTION STAMPING, INC. is a privately owned sub-S corporation specializing in metal
stamping and metal fabrication. 9600 Fallon Avenue NE - 763-295-8400 -Les Wurm, President.
RAINBOW ENTERPRISES, INC. is a metal and plastic precision machine job shop which supplies
~ products to the medical, defense, and aerospace industries.
108 Chelsea Road - 763-295-1100 -Bill Harris, Owner.
www.rainbowmachining com
2
`Manufacturer Directory of Monticello
• STANDARD IRON & WIRE WORKS, INC. is a third eneration famil -owned metal fabricator
g Y
specializing in parts for a vast array of original equipment manufacturers and commercial and industrial
construction projects, and designs and manufactures durable_returnable c tainers. The Monticello
facility is the corporate headquarters for its three plants.G' ~' ~ ~ ~° "`~'
207 Dundas Road - 763-295-8700 -Rich Demeules, Vice President, and Joe Demeules, Vic
President. w~•~•~-.std-iron.com ~v~ ~p ~~ ~~ C, +~6
SUBURBAN MANUFACTURING, INC. is a manufacturer of custom machine products and
~%' assemblies.. The company also manufactures and distributes its own product lines.
301 Chelsea Road - 763-295-5635 -Brad Barger, President.
o'~ow.,
SUNNY FRESH FOODS, INC. develops, tests, and produces sophisticated egg products. The
company, a subsidiary of Cargill, Inc., operates as an independent trait able to utilize resources of the
international corporation. ~.,.. '~~ ~ c,
206 West 4 Street - 763-271-5600 -Mike Luker, President. ww~w.usae?~ st, com
TIRE SERVICE EQUIPMENT MFG. COMPANY, INC. manufactures and distributes automotive
service equipment and recycles automotive vehicle component equipment.
201 Chelsea Road - 763-295-4650 -Ray Schmidt, Plant Manager.
• TWIN CITY DIE CASTINGS COMPANY is a manufacturer of aluminum, zinc, and magnesium die
~~ castings components including extensive secondary operations in close tolerance machining, milling,
tapping, drilling, painting, and assembly. The Monticello facility, one of three locations, is home to the
magnesium die castings division. ; „Q
520 Chelsea Road - 763-271-5060 -Doug Harmon and Steve Harmon, Owners. www.tcdcinc.com `y'~~~"
~ - ~ ~,~..
ULTRA MACHINING COMPANY (UMC) is a privately owned corporation specializing in
medical, aviation, and commercial jobs and isa low- to mid- volume, high-complexity, precision shop.
500 Chelsea Road -Don Tomann, President, 763-271-5200 w~vw.ultramc.com
p~/ VECTOR TOOL & MANUFACTURING, INC. is a screw machine job shop.
C1~ 206 Dundas Road - 763-295-0909 -Jim Harwood, President.
WESTLUND DISTRIBUTING is a privately owned corporation and division of Tapper's Inc. The
company is a wholesaler of hardware for the cabinetry-maker industry.
212 Chelsea Road - 763-295-4222 -William Tapper and Barbara Tapper, Owners.
ww~~.westlunddistributin. . com
-,
Manufacturer Directory of Monticello
• WSI INDUSTRIES, INC is a public-held company which does precision machining and assemblies
C~ specializing in avionics and aerospace, computer, defense, power systems, and medical.
213 Chelsea Road - 763-271-~~8 -Mike Pudil, President/CEO and Paul Sheely, Vice President,.
Finance/CFO. ~ °~~ ~--
•
• 4
~.
AGENDA
REGULAR MEETING - MONTICELLO PLANNING COMMISSION
Tuesday, September 7th, 2004
6:00 P.M.
Members: Dick Frie, Richard Carlson, Rod Dragsten, Lloyd Hilgart, and William Spartz
Council Liaison: Glen Posusta
Staff: Jeff O'Neill, Fred Patch, Steve Grittman - NAC, and Angela Schumann
I . Call to order.
2. Approval of the minutes of the regular Planning Commission meeting held Tuesday, August 3rd,
2004.
3. Consideration of adding items to the agenda.
4. Citizen comments.
5. Public Hearing -Consideration of a request for a Conditional Use Permit for a Special Home
Occupation for Spiritual/Intuitive Readings and Reiki Healings in an R-1 district.
Applicant: Kristin M. Thomas/Healing with Spirit
6. Public Hearing -Consideration of a request for an Amendment to an existing Development Stage
PUD for a fence line addition and building expansion in a B-3 district.
Applicant: AMAX Self-Storage
7. Public Hearing -Consideration of a request for a Simple Subdivision to create two industrial lots
in an I-2 district.
Applicant: Standard Iron & Wire Works
8. Discussion Item -Review of Open and Outdoor Storage Ordinance Requirements
9. Adjourn.
C,