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IDC Agenda 05-18-2000• NOTE ! IDC Meeting: CITY HALL, 7:00 a.m. IDC Tour: RAINBOW ENTERPRISES, 8:00 a.m. 108 Chelsea Road Thursday, May 18, 2000 • AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, May 18, 2000 - 7:00 a.m. City Hall - 505 Walnut Street -Academy Room MEMBERS: Chair Tom Ollig, Vice Chair Kevin Doty, Shelly Johnson, Don Smith, Tom Lindquist, Bill Tapper, Dick Van Allen, Bob Mosford, Don Roberts, Mike Benedetto, Dan Carlson, and Jim Amundson. COUNCIL LIAISON: Mayor Roger Belsaas. STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak. Call to Order. 2. Consideration to approve the Apri120, 2000 IDC minutes. 3. Consideration of updates: a) Mayor Belsaas -Mayor's report b) Koropchak -Prospect and BRE c) Smith, Ollig, or Van Allen -Marketing • 4. Continued -Consideration of an update on the progress to actively pursue acquisition of land for future industrial use. a) Grading Study for Chadwick parcel. b) Draft copy of Swap Agreement between City and Chadwick parcel. c) Planning Commission Update of May 2 relative to Gold Nugget parcel. d) Update on Chelsea Road West Development. 5. Consideration to hear a presentation by IDC Member Don Roberts: As a member of the site selection team, Don will share his experiences and insight. 6. Other Business. 7. Adjournment. Next IDC meeting, June 15, 2000 and tour of Tire Service Mfg. Equipment. TOUR BEGINS 8:00 A.M. AT RAINBOW ENTERPRISES, 108 CHELSEA ROAD. MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, Apri120, 2000 - 7:00 a.m. City Hall - 505 Walnut Street -Academy Room MEMBERS PRESENT: Chair Tom Ollig, Vice Chair Kevin Doty, Shelly Johnson, Don Smith, Tom Lindquist, Bill Tapper, Bob Mosford, and Don Roberts. MEMBERS ABSENT: Dick Van Allen, Mike Benedetto, Dan Carlson, and Jim Amundson. STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak. Call to Order. Chair Ollig called the IDC meeting to order at 7:00 a.m. 2. Consideration to approve the February 17 and March 16 2000 IDC minutes Bill Tapper made a motion to approve the February 17 and March 16, 2000 IDC minutes.. Bob Mosford seconded the motion and with no corrections or additions, the minutes were approved as written. • 3. Consideration of u dates: a) Mayor Belsaas -Mayor's report Absent. b) Koropchak -Prospect and BRE See Attachment A. c) Smith. Ollie, or Van Allen -Marketing Will schedule meeting. 4. Continued -Consideration of an update on the progress to activelypursue acquisition of land for future industrial use. a) Crrading Study for Chadwick parcel Wolfsteller informed members that the greatest discrepancy relative to the grading plan is the amount of material the Chadwick Group would like to remove for mining. The City's concern is the mined-site must retain sufficient material for the City to develop without additional costs. Wolfsteller did not see this to be a deal killer. Staff will be meeting with the City Engineer relative to the grading plan. b) Draft copy of Swap Agreement between City and Chadwick parcel. The draft copy of the Swap Agreement outlines timing of swap, swap ratio of 2:1, and assessments. It is anticipated the Phase I swap will include a 54-acre industrial parcel swap fora 27-acre commercial parcel. Zoning in the southeast corner abutting the Bondhus Addition needs to be resolved as the Comprehensive Plan is IDC Minutes - 4/20/00 an industrial use and the MOAA in a residential use. O'Neill informed the IDC there would be a meeting with the residents of the Bondhus Addition in the next few weeks. c) Plannins Commission Resyonse to IDC suggestion of Feb 17 relative to Gold N~get parcel. O'Neill reported staff will be conducting apre-study relative to industrial growth and absorption within this region including where the growth and utility development. d) Update on Groveland and Chelsea Road West Develo ment. With some unresolved land and easement issues, ordering of plans and specs for West Chelsea Road was delayed by two weeks. Grading currently underway in the southwest corridor is site prep for the housing development by Groveland. Several IDC members commented: Looking into the next 20 years, using Maple Grove as a modular, and given the physical location; preserving the Gold Nugget parcel for industriaUcommercial makes sense. With the growth in Sherburne County, the opening of Albertville Outlet Mall and the proposed river crossing, we'll see continued changes to that area. Big Lake is expanding around the lake and is making other major changes. One suggested we put adversities behind us and move-on with development with the city's major land owner. Another felt with the School Blvd and Highway 25 signalization ready to go, infrastructure to the Remmele parcel in place, and the aggressiveness of that • developer, this is favorable for Monticello. Consideration of site tour for IDC May meeting and revisit 2000 calendar IDC members enjoy tours, Koropchak schedule visit for May. 6. Consideration of plans for Industrial Breakfast by the Chamber scheduled for A np '127 Invitation were mailed by the Chamber this week. Program: On the road to the Malcolm Baldrige Award, Groveland and West Chelsea Road development and City/Chadwick Group land swap. 7. Consideration to hear an overview of year-end reports and activity of the HRA and EDA Using an overhead, Koropchak noted 19 TIF Districts have been certified to assistance industrial business since 1982. Through taxes payable 2000, nine of the nineteen districts have been de-certified meaning the tax increment is now distributed among all the taxing jurisdictions. Upon receiving the returned wage and job survey and using the Payable 2000 Tax Book, Koropchak plans to calculate the return of investment for TIF. Secondly, Koropchak noted $585,000 are available for industrial loans and informed members the EDA agreed for the purpose of marketing to market the loan amount as up 2 IDC Minutes - 4/20/00 to $200,000. This for competitive reasons and increased costs to projects. In addition the City was awarded $500,000 grant for Twin City Die Castings and is submitting an application requesting $450,000 for Profile Powder Coating. The payback dollars plus interest is retained by the City for future loans; however, the payback dollars must be accounted for independent of the EDA dollars and are subject to Federal regulations: 51 of jobs available to low and moderate income, David Bacon Law, etc. 8. Other Business. Bill Tapper told IDC members he attended a meeting relative to the effects of unions. The effects were not favorable and Bill expressed his willingness to share his experience with local industrial leaders. Tapper asked the IDC members for input into sharing his experience. The feeling of the IDC membership was to lay-low. 9. Adiournment. Next IDC meeting May 18 2000 The IDC meeting adjourned at 8:30 a.m. ~ a ~ \~ ~ o .~~~ Recorder Prospect and BRE Report -April 20, 2000 Twin City Die Castings -Building is on it's way up. May cut back on steel tower and glass walkway between manufacturing and office due to increase costs to meet fire codes for a magnesium facility. Article in City Business Journal. Profile Powder Coating, Inc. -This company did commit to the City of Monticello and will purchase 3.15 acres of land from Pfeffer at the corner of Fallon and Chelsea Road. Preliminary and final plat approval will be of the Planning Commission agenda in June. Approval of the TIF Plan and District by the City Council is scheduled for June 12 with construction to begin early July. The company would like to occupy the facility by November. 30,000 sq ft block building, at least 30 new jobs at a range between $12 and $16 per hour without benefits. The Part I application to the State of Minnesota fora $450,000 grant has been submitted as well as the Part I application to the CMIF for $100,000. The EDA will review the preliminary application for funding on Apri125. The president of the company is Steve DeJong. Received brochure in mail. Intercomp -Can not get through to Billie Kroll, President. '- ~ ~ ~ ~'~~ H&R Industries, Inc. -Met with Gary Hase and John Coursey on March 23. Looking to lease immediately 10,000 sy ft feet. 12 to 17 jobs between $12 and $14 excluding benefits. First facility in Minnesota. The company a plastic manufacturer for temperature control products. The Illinois facility deals with commercial and the Minnesota site proposed for electronic industries. One large client is Hoffman Engineering in Anoka. Suggested and contacted MLC and Allied • Companies. On Apri14 via telephone conversation, they plan to come back to MN to look at a facility in Elk River. Time frame doesn't work out for Monticello. Was a good prospect to let go. Adaboy Manufacturing -Working with builder for potential Monticello site to construct 20,000 sy ft facility. Now leases from Jay Morrell, lease up in November. I ran comparative TIF numbers for steel and concrete building. BRE. Allied Companies -Haven't spoke with Mark Houge of late, only about H&R Industries. Alliant Techsystems, Inc -Wrote letter to Richard Jowett based on an article in City Business Journal relative to relocation. In a telephone conversation since, Richard was impressed with our brochure; however, the company surveyed their employees relative to relocation of which the response overwhelmingly was "no relocation". BRE Sunny Fresh expansion on going. 30 marketing brochures mailed end of March. . Letters to industries and major employees of Monticello were mailed early April for update of Community Profile. Other information also requested from lenders, hospital, schools, etc. Marketing Committee must meet relative to Golf Outing -Golf ticket price up to $40 per person plus bus and gratis lunch. June 14. Plans to schedule meeting with City of Savage relative to industrial park development. Lender, HRA, and Council workshop May 3, 5:30 p.m., downtown redevelopment. Industrial Breakfast, April 27, 7:30 a.m., Community Center. LJ • N V C 0 ~a N V 1 r ~ V1 ~ z ~ j d 0 • V ~w a !" W ~ ~w w I O N ~~ • p r ~ ~ U ~ py ~ U -.. op N tit w ~ a~ tt o • ~ ~ tip ~ ~ C o ~ .c y c .,. _, o ro a ~ on ti i r"+r ~ 3a~'~~a°oS.~a~~on8 ",~°c~~on as V ~ `"vas ~ o.~ ao.` c ~ ~ ~ ~ o ~ °~_~ ~ ~.~.~ 0 '~ Q a c ~' ~ ~ aai a •~ c, ~ ~ ~ ,o F~ ~ y y ip~y+ '~oio oa~n w L •1 y ~ '~i ~ ~~~~o~~~-~~ o~ ~~~~~~~ U ~.' ~ ~ ~ ~ CG La Q ~ '.C ° S'"r 3 O ~" W a~aG~~,a.~'~o ~y~~ ~~~oxu~~ 3 a~ `u~ ,~ • ~ c •~ 'y .~ ~ ~ ;~ 'coq a o ~ >,.~ ~ '~ „~ a>i ,~ ~ c~i a a:na~o aa.a~ a~i~~~ ~V ~~~3~.?, Cc~~ E 0. a~ Z V ~ ~ ~ o o ~ ~ w o ~ ~ ~ ° V ~~oA Vic„ ou "°' ,~,ba~>° ,y 'd W 4. O ~ ... ~ N .O b o ° a~ ~ 3 onai ~w N 3 ~.~ a~sw~.~• C ~ o.c.oz ~~ ~ i ~:o~~ a>i~'~ ^~ ~ Q ~ v3 d a>'+ U~~~ U y G ~ N ~ y ~. ~ a y ~ ~ dq `n ~ ~O ~ U s: . cC b Cr ~ ~ ~ y ~„ ~ 00H o°'u~.a o c~xUO~ Gn3 ° w'~ o ~ a'.. a~~a~~ May 5, 2000 KRAUS-ANDERSON® CONSTRUCTION COMPANY ~ CONTRACTORS & CONSTRUCTION MANAGERS Jeff O'Neill Ollie Koropchak City of Monticello 505 Walnut Street Suite 1 Monticello, MN 55362-8831 Dear Jeff & Ollie, Just wanted to thank you both again for taking time from your busy schedules to share a "community overview" with me on the Monticello area. From your update, it's clear your community has seen a great deal of activity and success in the residential, commercial and industrial development area. As I shared, Kraus-Anderson is very interested in being of service on • commerciaUindustrial project opportunities in the Monticello area. In this regard, if there is anyway that we can be of specific project service, I hope you will please keep our Company in mind and feel free to give me a call. I can assure you we would welcome the opportunity to work with you on a project! Again, thanks for the community update - it was very much appreciated. I am also looking forward to attending your Community Tour on June 14``' - til then, keep up the great work in Monticello! Sincerely, KRAUS-ANDERSON CONSTRUCTION COMPANY BUILDING DIVISION Bruce W. Halbasch Vice President, Marketing BWH/fms Building Division 2500 Minnehaha Avenue, Minneapolis, MN 55404 Phone: (612) 721-7581 EAX: (612) 721-2660 Equal Opportunity Employer ~ ~~~od~ l~AY 8 ZCW D ~GENEq,~ .~ ~A®Cg a ~r s's ~FAMEP~G~'