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IDC Agenda 11-16-2000AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, November 16, 2000 - 7:00 a.m. City Hall - 505 Walnut Street -Academy Room MEMBERS: Chair Ollig, Vice Ch it Ke ~ Don Smi To~dquist,~~~'T Eck Van Allen Bob Mosford, on Robe ike Benedett ,Dan Carlson, and Jim Amundson. COUNCIL: ayor Roger Belsa STAFF: ~ck Wolfstelle Jeff O'Neil John Simola, Fred Patch, ~ K.Qropchak. '~ 1. Call to Order. ~'. C~ ~ 2. Consideration to approve the October 19, 2000 IDC minutes. ~ T ~~ 3. Consideration of updates: G n} SQ~ ~ e~- ` ~ ~ '~cSv" ~-__ a~___. Mayor Belsaas -Mayor's report b) Koropchak -Economic Development report. c) Smith, Ollig, or Van Allen -Marketing ~~,~ Z - 4. Continued -Follow-up discussion to the October IDC meeting relative to suggested strategies for development to improve public perception. • 5. Continued -Consideration of an update on the progress to actively pursue acquisition of land for future industrial use. a) Draft copy of Swap Agreement between City and Chadwick parcel. 6. Other Business. 7. Adjournment. Next IDC meeting, Thursday, December 21, 2000. ~f~~ /~, ~~ /~ "/ ~ ~ ~f5 ~ 5 i2~~~ ~` z r s~ l~ -- C MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, October 19, 2000 - 7:00 a.m. City Hall - 505 Walnut Street -Academy Room MEMBERS PRESENT: Chair Tom Ollig, Vice Chair Kevin Doty, Tom Lindquist, Bill Tapper, Don Roberts, Mike Benedetto, and Dan Carlson. COUNCIL PRESENT: Mayor Roger Belsaas and Council Member Clint Herbst. STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, John Simola, Fred Patch, and Ollie Koropchak. Call to Order and Welcome. Chair Ollig called the IDC meeting to order at 7:05 a.m. 2. Consideration to approve the September 21, 2000 IDC minutes. Mike Benedetto made a motion to approve the September 21, 2000 IDC minutes. Seconded by Bill Tapper and with no corrections or additions, the minutes were approved as written. 3. Consideration of updates: a~ Mayor Belsaas - Ma orgy's report Update given last month. b) Koropchak -Prospect and BRE Don Roberts reported the Sunny Fresh expansion project is about 90% completed. Finishing touches outside and roof work remain. He is working with Koropchak for the IDC to meet and visit the new expansion soon. Koropchak informed members of the financial incentives given New Flyer by the City of St. Cloud and read a thank you note from Jim and Lois Miller, winners ofthe Rand Mansion Gift Certificate from Expo `99. Koropchak's report attached. c) Smith Ollie or Van Allen - Marketing_(Follow-up of IDC Banquet) Chair Ollig commented on the success of the banquet, the excellent attendance, and the importance of a great speaker. 4. Continued -Follow-up discussion to the September IDC meeting relative to city engineer consultant and public relations. Chair Ollig thanked the city staff and Council member Herbst for attending the IDC meeting and then read excerpts from the IDC minutes of September 21 pertaining to last month's discussion. He encouraged the same open discussion and requested discussions remain within the room. The IDC recognizes the need for rules and regulation; the IDC's concern is comments made by some developers and builders relative to the attitude of city staff and city engineering consultant. (The perception is that City of Monticello is a difficult place to do development.) The lack of a customer friendly attitude. Ollig spoke of his conversation with Twin City Die Castings relative to one surprise after another. Mayor Belsaas acknowledged that a need exists for city staffto n IDC Minutes - 10/19/00 improve their attitude and suggested that the IDC and city staff work together as a cooperative body to develop an attitude of "we want to work with you" replacing the attitude of "that's the way it is." O'Neill informed IDC members that the staff (including Koropchak) and consultants hold weekly site review meetings at 2:00 p.m. every Thursday and invited IDC members to visit. Additionally, O'Neill said there are positive things in which people don't hear and the IDC does not seem to recognize. For instance, the dollars saved the TCDC through input on the electrical system design. Also reported O'Neill, Jay Ellers has recently indicated that he is very happy with city involvement and help on this project. We need to get the good word out when good service is provided. O'Neill deferred to Patch who informed IDC members of his preliminary meetings with the first architect, the second architect, cost over runs, the number of hours spend on the project, etc. and his scheduled meeting this a.m. Another IDC member spoke of the "fear of retaliation" by residerrtiaUcommercial developers. Although the staff requested specifics, the IDC preferred speaking in general. The building department did find an alternative way to avoid installation of an elevator at the Monticello County Club; however, initially, the review process was bad and slow. Time increases project costs. Roberts reminded individuals that once a company makes up their mind they're on fast track. In his experience, those successful communities have open arms and move quickly, they work more like a business. Discussion turned to hiring of a second engineer firm. Mayor Belsaas was aware of the sometime lack of tactfulness by the existing engineer consultant. Tapper mentioned the previous suggestion of hiring two engineers: one at a fixed fee for overall planning of the city and a second engineer for individual projects. Wolfsteller said he did contact three surrounding communities and their engineering services are similar to Monticello. At one time, the City of Buffalo hired a city engineer/technician as an employee; however, Buffalo's arrangement is back to consulting service. Simola said he spoke to John Bogard, a local engineer and former planning commission member, and Bogard suggested hiring a second engineer firm in order to give people a choice. Certainly, WSB, Inc. has the historical background of the city. Simola continued stating Bogard reviewed the city's centralized storm sewer system and he agreed the system was not over-designed. Roberts remembered Bondhus' concerns as the project kept changing and why spend money now when not knowing when needed. The Mayor informed IDC members the City stopped the installation of the sanitary sewer pipe but are proceeding to get the necessary easements. The Mayor suggested city staff alternate attending the IDC meeting for project updates and concerns associated with the appropriate staff member. Council member Herbst suggested a mailing to businesses stating "we've changed" along with a survey. Tapper acknowledged no one wants a shabby building; however, the interpretation by the building oi~icial appears to be the worst case scenario rather than an interpretation taking a little risk. In defense of Patch, Wolfsteller stated Patch is a licensed building official hired by the City to enforce building codes for the purpose of protection, safety, and health. Mayor Belsaas noted that some of the responsibility for changing the perception rests with the IDC itself. Roberts suggested apost-construction summary meeting with owners and Tapper suggested to formally assign a key contact person for each commerciaUindustrialprojea. Benedetto informed members in his business he deals with perceptions as well and suggested the IDC and staff develop strategies to over-come the negative perceptions. IDC members requested the November IDC agenda include further discussion of the strategies mentioned such as post-construction summary 2 IDC Minutes - 10/19/00 . meeting, alternative staff representation to IDC, assign key person to project, attend site review meetings, mailing/survey, and other ideas. Consideration to review approved 2001 water rates and WAC fees and to discuss a proposed trunk water charge increase. (John Simolal Public Works Director Simola presented IDC members with a copy the cash flow analysis for the water trunk fee fund which is running in the red. The trunk fees pay for new improvements such as wells, pumps, water towers, etc. The proposed rate increase, based on need, will be somewhere between $950 to $1,500 per acre. The Council may act on this sometime in November. Simola also noted the adopted increase in water rates and water hook up fees which are effective January 1, 2001. Any replacement costs such as replacing the old water trunk line along Broadway proposed for next year are paid through assessments and tax levy. The IDC agreed the water trunk fee fund needs to stay healthy. Chair Ollig thanked Simola for the information. 6. Follow-up on the recruitment of Barb Schweintek as an IDC member and award of Johnson's appreciation plaque. Chair Ollig informed members that he contacted Barb Schwientek of her interest in becoming a member of IDC. Discussions were deferred until after surgery. Koropchak has plaque for Johnson. 7. Continued -Consideration of an update on the progress to activelYpursue acquisition of land for future industrial use. Draft copy of Swap Agreement between Citv and Chadwick parcel. O'Neill informed IDC members that the original swap concepts is changing and the City is preparing three/four different purchase options for the Chadwick Group to consider. One option to include the purchase of the entire 180 acres. More later. Other Business. None. 9. Adjournment. Next IDC meeting, Thursday. November 16 2000. The IDC meeting adjourned at approximately 9:00 a.m. Ollie Koropchak, Recorder • • • • i • BRE- Economic Development Director's Report October, 2000 Sunny Fresh -Update by Don Roberts. Twin City Die Castings Company - I met Doug and Steve Harmon at the Monticello facility on September 29 to see inside of the manufacturing facility and get serial numbers for the 2 die cast machines and 2 melt furnaces in order to release the Letter of Credit associated with the GMEF loan. It is there hope to start casting zinc the week of October 23. They were excited about having received approval as a supplier for General Motors. You will note Steve Harmon and Jay Ellers are panelist at a session (Bringing Metro Growth to Rural Minnesota) at the Annual Minnesota Development Conference, November 2 and 3. Steve, Doug, and Maggie Olson were at the IDC Banquet and enjoyed it. I'll be working with Maggie on an open house of the facility. We have targeted April. Having heard the frustrations in the development process, I asked them frankly about their thoughts. Both agreed to put things behind them. However, these were their comments: They like Monticello as a location: good work force - (looking for the cream of the crop employees). Relative to frustrations: 2/3 State of Minnesota -Strict building codes compared to other states. IRB's (legal firm). 1/3 divided between their company/architect and building official (interpretation of the codes). They are excited about their facility; however, if had to do over again, they would get building permits prior to purchasing land. They were excited and in a hurry. Lastly, with the increased building costs for a project cost of $7 million and the IRB's have a cap of $10 million. Their future second expansion was projected at another $5 million and they were thinking of a third expansion. The difficulty is a lender won't be in second position behind the IRBs. Cottege Grove advertisement for industrial land (City Business Journal). Request from Wright County Partnership to become board member. Willing to change meeting date. Thank you note from Jim and Lois Miller, winners of our Rand House Certificate from Expo "99. Prospects 300,000 sq ft office/production facility. Relocation expansion from St. Cloud. Currently employ 800, additional 200. $40 to $50 million capital investment in land, building and equipment. RFP to Julien J. Studley, Inc., Chicago, IL., priority mail October 11. Message 10-17. Company name Bankers Systems Incorporated. 100,000 sq ft, three-story office headquarter -Monticello continues to be in the running along with St. Cloud. Company name unknown. 10 acre site south of I-94. 400 people. Message 10- 17. • 25,000-30,000 sq ft facility -Likes Monticello. May be getting cold feet. Worked with Tricon, Inc. Was invited to banquet. • Tricon, Inc. -Tom Feaski attended IDC Banquet. Purchased Value Plus building after viewing site for the above manufacturer. Tom and his wife have purchased a house in Monticello. Have a meeting with him this afternoon about a different company. Invite Tom to IDC meeting. Profile Powder Coating Company -Invited to banquet. Kind of cool. 100,000 sq ft manufacturing of louvers. Currently 70 employees, additiona130. Average Wage $12 per hour plus benefits. 14-16 acres of land. Currently have 58,000 sq ft in Delano, no room to expand. Response date October 17. Heidi Peper. 10,000 sq ft building -Coffee bean roasting. Meeting with Tricon and company, October 13. Met with Tom, Red Wing Foods owners. May build larger for lease. 7 full-time $12 per hour average excluding benefits. Is building department hard to work with? 5,000 sq ft office/warehousing for company specializing in in-store advertising. Looking for existing or new construction. Currently, six employees, anticipate adding 4-5 more. Average wage $30,000-$40,000 includes benefits. Same as last month. Responded a second time. • Turkey processing facility -Cargill is looking to establish a bag bird processing facility. 125,000- 150,000 sq ft on 25-30 acres. 275-350 permanent jobs in two years. Did not respond. The Monticello Waster Water Treatment Plant would immediately need to expand because of the • amount of water usage and BOD discharge. 6,000-7,000 sq ft office space - This is a manufacturing and distribution company. New space for sales and marketing. Purchase of lease, prefer lease. Want January 2001. 28 jobs and 5-10 more in six months. Average wage $9 per hour. Willing to increase. Responded. Working with Tricon and Silver Creek Development. 100,000 sq ft Fridley machine shop (sheet metal parts) 4,000 sq ft office. Lead from brochure. Builder Warren Hokanson called. 150 employees. Relocation from Fridley. 15-20 acres. Invited out or us in. Is building department hard to work with? 4,000 sq ft start-up machine shop. Looking to lease space. • SUGGESTED STRATEGIES MENTIONED AT THE IDC MEETING OF October 19, 2000 .7 1. Post-construction summary meeting with industrial owner. ~~~~ ~ 2. Assign a key contact person to industrial project. ~ ~~~' - ~,c~C ~~ 3. Alternate city staff representation to IDC meeting. 4. IDC member attend city weekly site review meeting(s). ~ e ~ ~ ~ '~ ~' ~"`'" 5. Mailing to announce "we've changed" with survey. ~ , 1~i ~.~ ~~~ 6. Others. C ; c `l v1 ~' ~~ ~'~~ ~~ ~ ~ _ ~ ~~ ~~ ~~~ ~ .. ~o ~ ~~~ ~n o dam, ~ ~~~ ~ s~ ~ ~~~. ~."~ '~ p S w~ ~w~4 .' '~. C~nc~ ._ Q, ~,~ ~ ~~ ~