IDC Agenda 08-16-2001AGEI~IDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, August 16, 2001 - 7:00 a. m.
City Hall - 505 Walnut Street, Academy Room
MEMBERS: Chair Dick Van Allen, Vice Chair To-n Lindquist, Don Smith, Kevin Doty, Bill Tapper,
Tom Ollig, Don Roberts, Mike Benedetto, Marv Barger, Susie Wojchouski, Barb
Schwientek, Ellen Perrault, 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.
Call to Order.
2. Approve the June 21, 2001 IDC minutes.
3. Subcommittee and Other Reports:
A. Marketing, July 26 meeting -Smith
B. Long-Term, Cooperative Land Use Decisions, Council Meeting of July 9 -Van Allen
C. Mayor's Report - MOAA existence and Chadwick parcel update -Belsaas
D. Economic Development Report -Koropchak
4. Discuss the decision of the Marketing Subcommittee to re-invigorate the Business Retention and
Expansion Program (BRE), it's purpose, and the role of [DC members.
5. An update and discussion on the Industrial Banquet sponsored by the Chamber of Commerce
(date and speaker). Wojchouski
7. Other business.
a) Chamber Lunch, August 16, 1 1:50 a.m., Hero's in Big Lake, "DSL is Coming" by TDS
Telecom.
8. Adjournment.
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, June 21, 2001 - 7:00 a.m.
City Hall - 505 Walnut Street, Academy Room
MEMBERS PRESENT: Chair Dick Van Allen, Kevin Doty, Mike Benedetto, Mary Barger, Susie
Wojchouski, Barb Schwientek, Ellen Perrault, and Dan Olson.
MEMBERS ABSENT: Vice Chair Tom Lindquist, Don Smith, Bill Tapper, Tom Ollig, and Don
Roberts.
COUNCIL PRESENT: Mayor Roger Belsaas.
STAFF: Jeff O'Neill and Ollie Koropchak.
Call to Order.
Chair Van Allen called the IDC meeting to order at 7:00 p.m.
Approve the Mai 17, 2001 IDC minutes.
Barb Schwientek made a motion to approve the May 17, 2001 IDC minutes. Seconded by Kevin
Doty and with no corrections or additions, the minutes were approved as written.
3. Subcommittee and Other Repo--ts:
A. Marketing -Smith In the absence of Smith, no repo-~t was given. Need to set meeting date.
B. Long-Term, Cooperative Land Use Decisions -Van Allen
Van Allen stated Benedetto and himself met with O'Neill to collect background information
relative to Council decisions and questions. The information useful to gain a better
understanding prior to moving ahead with discussions with the township. The objective of the
group to develop a better relationship with the township to encourage future planning (20-years
out). Van Allen noted the important of understanding the farmer's position: May be ready to
retire; however, farm important to kids. Maybe threatened by city folks. Need to break down
bar--iers.
C. Membership - Uadate or acceptance of a Township Board Member as IDC member. Smith
In the absence of Smith, no report. See attached a-mail which was not reported in June.
D. Mak~or's Repo--t -Belsaas
Under item 5.
E. Economic Development Report.
A written report was submitted with agenda. Koropchak noted in lieu of recent newspaper
articles relative to tax increment financing, information about the use of TIF in Monticello may
he important. The information states of the City of Monticello's total tax capacity, 3.85% is
captured for the purpose of tai increment. A low percentage compared to some metro cities.
Additional information noted the rural community of Wheaton where housing increased due to
the aggressive approach used for industrial development by the EDA. Lastly, an article relative
to industrial site selection noting how ranking of site selection factors vary from the perspective
of the company, the elected officials, and the economic development professional.
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IDC Minutes - 6/21/01
4. Discuss Ind decision whether the IDC should meet in July and/or August.
After input from each member present, the decision was to cancel the regular July meeting of the
[DC. Next IDC meeting August 16. 20001.
5. A Review and discuss action taken by the City Council relative to the acquisition of the
Chadwick~roperty See attached Council agenda and minutes.
B What is the Council's follow-u~plan~ Is industrial development one of the City Council's
coals? Mayo- Belsaas reiterated the past negotiations with the plans to swap the Remmele and
part of Chadwick property, negotiations changed as the top soil became greater, the gravel
amount became less, perhaps Chadwick lost a developer for the Remmele, City proceeded in
good faith and installed infrastructure to Chadwick parcel resulting in a change in the land value.
Perhaps, Chadwick has a commercial client for development along the freeway. Has the
Planning Commission looked at the freeway land for commercial rather than industrial? Van
Allen informed members he attended the City Council meeting of May 29 as directed by the IDC
and representing the IDC. He requested the Council give serious consideration to the acquisition
of industrial land and to also set up a task force to resolve the differences between the City's land
use plan and the MOAA land use plans as well as deal with other issues relating to industrial
development Van Allen emphasized the need for industrial development for the City's tax base
in light of the potential property tax exemption for Excel Energy. How does Monticello compare
to other cities or cities with powe-- plants? How does Monticello compare to other cities based
on tax levy and budgets? O'Neill noted that most cities receive a state aid known as L,GA;
however, the City of Monticello receives no LGA because of the power plant. The question was
raised: Why doesn't the City of Monticello market the Remmele parcel?
C. What is the IDC's followup plan?
In conclusion, the designated group for long range planning will continue to work with the City
and MOAA and the Market Committee will review strategies fdr promoting industrial
development.
6. How does tax increment financing impact the City taxes?
Van Allen noted he requested this item be on the agenda. Koropchak submitted a handout
utilizing an example of a Monticello business. Based on the market value, tax capacity, and tax
rate, the illustration noted the annual impact to the school, city, and hospital taxing jurisdictions
or the amount of taxes not received by those jurisdictions during the 8 to 9-year life of the
district. Tax increment means the property taxes generated from the new improvements or
structure. Koropchak noted the business is reimbursed a determined amount of tax increment
which is outlined in a Contract. Generally, the reimbursement is to assist with the write-down
of land costs. Lastly, Ko-°opchak outlined how Big Lake uses tax increment. Because they own
the land and the land prices are less, they use the tax increment to reimburse themself for the
land cost and the infrastructure development costs incu--red by the City. The land is offered to
the business for $l . Van Allen asked: If a Monticello taxpayer asked, "why does the City of
Monticello give tax increment to a business who doesn't pay livable wages?" What is the
answer?" Good question. First, the business must meet the `but for" test which means that the
project would not develop solely on private investment in the reasonable future. Secondly, both
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IDC Minutes - 6/21/01
the tax increment and loan programs have wage-level criteria. In Monticello, the wade-level
criteria is at least $9.00 per hour without benefits. The businesses receiving tax increment or
loans are paying wages greater than the criteria. The HRA and EDA periodically increase their
wage level criteria.
7. Other business.
a) Chamber Lunch, May 21, 1 1:50 a.rn., Monticello-Big Lake Hospital, Progra-n: "Introduction
of Queen Candidates".
None.
8. Adjournment.
Barb Schwientek made a motion to adjourn. Kevin Doty seconded the motion. Meeting
adjourned at 8:15 a.m.
Ollie Koropchak, Recorder
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Ollie Koropchak
From: dgstimes c.net
Sent: Wednes y, June 20, 2001 :14 AM
~o: Koropch Ollie
Subject: Iffy
Ollie
Nancy and I are off to San Antonio Thursday morning for the Rotary Int'I
convention--a first for me after 24+years in Rotary. Actually, we have
two days of youth exchange meetings beginning tomorrow night (1'll meet
some of the South African Rotarians I work with).
That means I'll likely not be at the meeting tomorrow.
Two updates from me:
~1 The Community Guide will be distributed with the July 8th
Shopper--inclduing the IDC ad (theme: Twin Cities Die Castings,
dustrial development).
Just this week, finally, 1 got a call back from Bill Youngs,
onticello Township supervisor. He declined--because of time
commitments, not because of lack of interest. The committee may want to
have Dick contact Franklin Denn directly.
Thanks. Sorry I'll miss the meeting--looks like a full and informative
agenda.
--Don
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