IDC Agenda 04-18-2002AGENDA
• MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, April 18, 2002 - 7:00 a.m.
505 Walnut Street -Academy Room
MEMBERS: Chair Dick Van Allen, Vice Chair Mary Barger, Kevin Doty, Tom Lindquist, Bill
Tapper, Tom Ollig, Don Roberts, Mike Benedetto, Susie Wojchouski, Barb
Schwientek, and Dan Olson.
COUNCIL: Mayor Roger Belsaas.
STAFF: Rick Wolfsteller, Jeff O'Neill, John Simola, Fred Patch, and Ollie Koropchak.
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. I . Call to Order. (Please read the minutes and information prior to the
meeting.)
7:02 2. Vote to approve the March 21, 2002 IDC minutes.
7:04 3. Updates by O"Neill.
b) Public Hearing Date for amending Comp Plan, May 7, 7:00 p.m.
c) Gold Nugget parcel.
d) Otter Creek Crossing annexation.
7:14 4. Feedback from the Planning Commission Open House and IDC
presentation -Van Allen.
7:34 5. Reports:
BRE Visit - Polycast Specialities, April 26, 9:30 a.m
Economic Development Report -Koropchak.
Mayor -Belsaas.
Follow-up with Dr. Nemec -Tapper
Industrial Banquet Date -Wojchouski.
8:00 6. Discuss changing the IDC focus to economic development (both industrial
and commercial.)
8:20 7. Other Business.
8:25 8. Adjournment.
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March 21, 2002 - 7:00 a.m.
SOS Walnut Street -Academy Room
MEMBERS PRESENT: Chair Dick Van Allen, Kevin Doty. Bill Tapper, Mike Benedetto,
Susie Wojchouski, and Dan Olson.
MEMBERS ABSENT: Vice Chair Mary Barger, Tom Lindquist, Tom Ollig, Don Roberts,
and Barb Schwientek.
COUNCIL LIAISON ABSENT: Mayor Roger Belsaas.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
GUEST: Darrin Lahr, Xcel Energy.
IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to
create jobs in the City of Monticello, Minnesota.
Call to Order. (Please read the minutes and information prior to the meeting.)
Chair Van Allen called the IDC meeting to order at 7:00 a.m.
2. Vote to approve the February ~ I ~00~ IDC minutes.
Bill Tapper made a motion to approve the February 21, 2002 IDC minutes. Kevin Doty
seconded the motion and with no corrections or additions. the minutes were approved as
written.
Updates by Wolfsteller.
a) Open House/Workshop Date for amendin ~ Comp Plan is scheduled for Wednesday,
April 17, 4-7 p.m. It was suggested the IDC make its presentation at both the open house
and public hearing. The open house intended for discussion and the public hearing for
comments which are entered into Planning Commission minutes.
b) Public Hearing Date for amendin~Com_p Plan is scheduled for Tuesday, May 7, 7:00
p.m.
c) Next mediation date for Gold Nugget parcel. Wolfsteller reported they were getting
close to settlement through the court system. Then the township requested the court
system declare if an MOAA exist. This request was combined with the Gold Nugget
settlement which may slow down the process and final settlement. The MOAA's
insurance covers the court system costs. On March 11, the Council authorized an
appraisal of the 70 acres. Koropchak stated given the uncertainty of a settlement, land
prices, and the small pockets of proposed industrial land uses, perhaps the focus for future
industrial development is better served by considering the acquisition of the Orchard
Road property and to retain a consultant to lobby for the I-94 interchange.
IDC Minutes - 3/21/02
d) Otter Creek PUD Approval -The Planning Commission approved the Otter Creek
Business Park concept PUD based on the concept is consistent with the Comprehensive
Land Use Plan. Some highway like business uses were removed.
4. Followup on concern raised by some industries as to increased power outages in
Oakwood Industrial Park by Darrin Lahr.
Darrin Lahr began by informing members that at one time the Lynn Street substation
served the City of Monticello. With the growth of the city became the need for more
capacity. Creation of new substations is becoming a thing of the past as people see
substations as anon-appealing neighbor. Excel Energy has two types of systems: a 12-5
system (substation) and 35,000 KB Volt system (bulk power). Using a map, Lahr
continued stating with the growth of Monticello, the city is now being served from the
south by the bulk power system located at Lake Polaski. The feeder line runs north to 85
Avenue and breaks into three fork-like legs. One leg running up Fallon Avenue to
Chelsea Road and the other two running up Highway 25 and Fenning Avenue. With
added miles of feeder lines comes more exposure, mostly from lightning. Another
system woL-ld not be installed in Monticello, unless a big user would locate in Monticello.
With the growrth in the St. Micheal area, the Hassan system will tie into the Lake Polaski
system and Monticello via County Road 18 serving as a backup system. However, this
has not yet been completed. The Thomas Park Addition, a portion of Chelsea Road
between Oakwood Drive to Aroplax, and Dundas Road are served by the Lynn Street
substation. So in some cases, perhaps Rainbow"s power was out and Remmele's was on.
Lahr then presented the OIP outage history between 2000 and 2001 stating 1996 and
2000 was not available. It appears that most outages result from lightning, animal
contact, and pole fires. Asked: what about the momentary outages which cause loss of
production time. Because of the length of feeder lines perhaps a storm hits Lake Polaski
and not Monticello or occurred during construction. A local business can co-ZSider a
battery back-up system. The question becomes ``What is the power worth?" In
conclusion. Lahr volunteered to talk with Rainbow and suggested any other questions be
referred to him. IDC members thanked Lahr for the informative information.
5. Review IDC questions for Planning Commission.
IDC members reviewed the questions for the Planning Commission and agreed the
questions were written as intended. Members agreed to present the questions to the City
Planner, City Planner Consultant, and Planning Commission prior to the workshop/open
house. Koropchak informed members of her visit with three members of the marketing
team from C B Richard Ellis, the firm marketing Otter Creek. It appears the owner
prefers not to develop the 141 acres and asked for suggestion of interested local parties to
purchase the property. $5.8 million for the 141 acres or $.95 per sq. ft.
Discuss elements of presentation lobbyin~ the Planning Commission
Several questions were directed to Administrator Wolfsteller. Who is responsible for the
overall planning of the City of Monticello? Does the City have goals for job and tax
base creation? What is the plan to meet those goals: tasks and time frame? How does
the City plan to replace the loss tax revenue from the Monticello Nuclear Generating
IDC Minutes - 3/21/02
Plant? Who is the representative from the city for transportation issues such as ensuring
future I-94 interchanges both at County Road 18 and Orchard Road?
Discuss chan~in~ the IDC focus to economic development (both industrial and
commercial.) With only a couple of members still in attendance, there was no discussion
relative to changing the focus of the IDC. Chair Van Allen did ask "Is the mission
statement of the IDC measurable and are we measuring it?"
6. Reports:
BRE Visit Followup. No report given.
Economic Development Report No action was taken on the written report. Koropchak
informed members of a meeting held between Weinand, Pfeffer, O'Neill, City Planner
Consultant, City Engineer Consultant, and Koropchak. The purpose of the meeting was
to discuss future proposed projects such as the I-94 & CTY Road 18 Interchange and the
need to obtain easements or property to complete that project, others, and the I-94
bike/pathway bridge connection. Interchange access options were discussed stating it's
MDOT plan to complete the interchange by 2005 prior to commencing construction to
realign I-94 in 2006. During the meeting, the question arose as to the City's intent to
purchase land for industrial development. Staff responding to the question, the
developer was not happy with the idea of competition.
Manor No report.
Followup from Dr. Nemec relative to providing the service of dru tg esting. Neither Van
Allen or Tapper had heard back from Dr. Nemec after their conversation relative to
providing the service of drug testing for new employees of the local businesses.
Wolfsteller reported that the City now uses Alliance Clinic associated with the Buffalo
Hospital It was recommended that Bill Tapper contact Dr. Nemec.
Chamber decision on Industrial Banquet. -Chamber Director Wojchouski reported that
Norm Coleman can speak as long as no campaigning is done. The Chamber is looking at
a June date for the banquet. The regular meeting of the Chamber is today 1 I :50 a.m. at
the Vintage Grill. The speaker is from the MN Retailers Association and will address
current issue at the Legislation.
7. Other Business.
Koropchak requested input as to whether the Marketing Subcommittee wanted to host a
bus tour and lunch for developers, builders, contractors, brokers in connection with the
Chamber Golf Outing scheduled for Thursday, May 17, Silver Springs. Members
suggested a presentation prior to the 11:30 a.m. golf outing. They agreed ;ack of change
within the community did not warrant a bus tour but felt it was importance to get the
developers/huilders out here. The golf outing is gratis to those invited.
8. Adjournment.
The IDC meeting adjourned due to a lack of quorum.
9:-9~~. ~Ji- Ollie Koropchak, Recorder
The Industrial Development Committee urges the City of Monticello and the
Planning Commission to take a 20-40 year look at Commercial /Industrial
development.
14 April, 2002
A) TRENDS
1- Continually increasing City budget, tax rate, rate of inflation (Slide)
2- Reduction in Income from Xcel Energy Utility tax (71 now reduced to
53% of City budget) Lost tax capacity needs fo be replaced to reduce
dramatic and continual increases to the general tax rate.
3- Government Shifting of tax to localities, residential, commercial and
rail, ~ Z `^ ~- ,~~o, cQ.~.i..a- vr•*••~7
4- City Administration continues to lack Commercial /Industrial ~ ~ ,
development to aid in distribution of the tax burden.
B) MEASURE CITYADM/NISTRAT/VE SUCCESS in terms of annual
business accomplishments, local jobs, payroll and tax base. Success is
not measured by lndust6rial Land designation but by:
• Businesses Retained
• Businesses Lost
^ • Businesses that who have or are building
C) COMMERCIAL /INDUSTRIAL SUCCESS -successfully run local
success have been city owned industrial parks.
• Rockford -City Owned
• Buffalo -City Owned
• Big Lake Big Lake Record of Industrial Development retyped 14 April 02
as reported 15 November 2001
Performance Measure - Ci of Bi Lake
Goals Established at the Outset of
the Park Current Status of Goals
Land Size 72 acres Develo able land 50 acres
Infrastructure Phase / Roads, Sewer and water Installed
1999 service to 3 lots /15 acres
Cost to Develo $ 800,000 estimated 13 lots
Ex ected Private sector Investment $11 to 13 million
RESULTS RESULTS
Jobs er Acre 5 Acres 4.2 "obs /acre
Land to Buildin Ratio 4:1 s ft 4.6 s . ft.
Developed Land Assessed Value
$250,000 /acre $320,435 /acre
O en Stora a Not A//owed None
Years to a back incentives 5 to 6 Not determined
v
Planning Commission Agenda - 1/8/02
Update -IDC and HRA Recommendations
No action is required of the Planning Corrimission at their January 8, 2002 meeting. The IDC
and HF~1 submit and reduest the Planning Commission and City Cutmcil consider and
incorporate their respective recommendations into the Comprehensive Plan update and
amendment process and to take the applicable action to accomplish the recommendations.
Reference and Background:
On December 7, 2001, the Marketing Subcommittee (HRA Commissioners Darrin Lahr
and Brad Barger and IDC Members Dick Van-Allen, Tom Ollig, and Don Smith)
reviewed data including current local industrial landprices ($65,340 per acre), the
decrease of taY increment revenues collected due to class rate reductions, and the Big
Lake Industrial Development Plan. The group recognized the availability of three local
industrial buildings and the current recession; however, they also could not justify
spending $20,000 for marketing non-competitive industrial land prices. They agreed
Monticello is out-of-the ball game. Additionally, the group considered the $~6~,000
Industrial Development Fund set aside by the HRA and the Council for industrial land
acquisition and/or infrastructure developi~lent and the additional pool of non-restrictive
TIF funds pledged for industrial land acquisition or infrastructure development. The
Marketing Subcommittee made a motion ``asking the HRA and the IDC to approve the
Marketing Subcommittee's recommendation to rezone City (Remmele) parcel from
commercial to industrial and to develop an industrial park forwarding the
recommendation to the Planning Commission."
At the IDC meeting of December 20, 2001, Jeff O'Neill gave an update to the IDC
members on the status of the Comprehensive Plan amendment. He gave a detailed
summary of the preliminary land use plan and noted reasons why the City (Remmele) site
has been identified as an important parcel for future commercial development and noted
that the mediation session for the Gold Nugget parcel was scheduled for .Ianuary 10,
2002. Additionally, he noted city acquisition of the industriaUcommercial portion of the
Gold Nugget site, either by purchase or via swap (City/Remmele), remains a possibility.
IDC Chair Van Allen informed members of his recent conversation with UMC, an
industrial prospect, relative to the relocation considerations and economic benefits to a
community. After discussing the Marketing Subcommittee's recommendation and
hearing O'Neill's report, the IDC was ready to make a motion which included preparation
of a time fi°ame.
IDC Recommendation
IDC ~~lemhei• 6cn~•h Schwientek ~ncrcle cr motion recomnu~nclin; IGte control ~~f ~u site for
• Planning Commission Agenda - 1/8/02
industr'iul c%vcl~~/~~ne~t aid to conz~nit to constriaclion com~lelion of~rrtiliry and i°nad
irrlprovc~n~rents by Full of2002,for either the City (Rernmele) or• Gold Nar;get pay'cels~, and
to [~r'e/pure a time fi-ume for the City (Rern~nele) c~nd Gold NLrggc~t parcels, beginning with
tl7e infrus'trzrctrrre improvement completion date crud working backwards identifying the
uppliccrble steps and tune,fycmu' to accomplish control of~site and infy~crstrzr,chu°e
completion. This recommendation to be forwarded to the Planning Commission and City
C'orrncil. IDC Member Bill Tapper seconded the motion and with no further discussion,
the motion passed unanimously. "
At the PIRA meeting of January 2, ?002, O'Neill gave an update to the Commissioners on
the status of the Comprehensive Plan amendment and stated he agreed that City
ownership of industrial land is critical to getting industrial development going, but
thought that use of the City (Remmele) site should be considered after other viable
options are exhausted. Alter discussing the Marketing Subcommittee's recommendation
and hearing O'Neill's report, the following motion was made.
HRA Recommendation
",4 motion runs ralade by Commissioner Brad Barger to recommend to the Planning
Commission and the City Council to hove a completed inchrstricrl park owned by the HR4
or City rvilh lots ready to sell in April gf'2003. Commissioner Dcrrr•in Lahr seconded the
motion cmd with no fzrrther° discussion, lire ~~wtion carried unanimously. "
Again, the IDC and HRA request the Planning Commission and City Council consider
and incorporate their respective recommendations into the Comprehensive Land Use Plan
update and Amendment and to take the applicable action to accomplish the
recommendations.
Supporting Data - Copy of Big Lake Industrial Development flan and copy of Van
Allen's discussion with UMC.
r~
u
Percent of building coverage on lots
50% 21.40
Trans ortation Pro'ects? None None
Return on Investment A rox 17% Not determined
Big Lake has reported they would
not re eat a 'oint venture Special Note ! Note
Big Lake Background Data:
• Joint 50 - 50 ownership City and Township
• Shared development and operating costs
• Shared benefits
• Phased development -Land purchase 1996
• Bonds sold, TIF district used
• Marketing, consultants at first then networking, package incentives
including $1 land.
• Results as above.
• Talk of expanding, development of another park.
Suggested Actions:
City of Monticello to measure its overall development success in terms of:
• Actual development results in fhe categories of Residential, Commercial
and Industrial. Commercial and Industrial development to follow the
"Big Lake Pattern" of goals.
• Designate 200 Acres for industrial Development
• Avoid the reclassification of land zoned Industrial through the use of
PUD designations
• Rezone the "70 acre Remelle Property" as Industrial.
• Buy reasonably priced nearby land outside the city for long-term.
development -this could also be seen as an investment.
•
QUESTIONS DEVELOPED BY THE IDC FOR
THE PLANNING COMMISSION
(COMPREHENSIVE PLAN AMENDMENT)
1. LOOKING AT MONTICELLO AS THE HUB, WHY DOES THE PLANNING
COMMISSION NOT LOOK TO ANNEX PROPERTY ACROSS THE MISSISSIPPI
RIVER?
2. WITH THE INCREASED INTEREST TO DEVELOP COMMERCIAL TYPE
BUSINESSES ALONG THE FREEWAY, WHERE IS THE PLANNING
COMMISSION'S FOCUS FOR INDUSTRIAL?
3. ASSUMING NO PROGRESS HAS BEEN MADE TO ACQUIRE THE GOLD
NUGGET PROPERTY BY FALL 2002, WILL THF. PLANNING COMMISSION
CONSIDER ZONING THE CITY/REMMELE PROPERTY INDUSTRIAL?
IF NOT, T1~EN WHERE?
4. WITHIN TIIE MARKETING PIECE OF THE CHADWICK PARCEL, IT STATES
"FLEXIBLE ZONING ALLOWS FOR COMMERCIAL, INDUSTRIAL, ANll
RESIDENTIAL USES". DOES THE PLANNING COMMISSION SUPPORT THIS MIX
• OF USES?
5. DOES THE PLANNING COMMISSION SUGGEST THE CITY AGAIN APPROACH
CHADWICK FOR THE PURPOSE TO ACQUIRE THE LAND FOR INDUSTRIAL
DEVELOPMENT?
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