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IDC Agenda 07-20-1995• AGENDA MONTICELLO INBTJSTRIAL BEVELOPMNT COMMITTEE Tht,rday, J~_zly 20, 1~3~5 - 7;00 a.m, City Hall MEMBERS: Chairperson .TOhn McVay, Vice ..^_.hairperson Kevin Duty, Treayr_ar?r Ron Hoglund, Shelley J~;hn~>on, Arve Grimmn, Dora Smitka, .Tay Morrell, Kexa Ma~_is, Harvey Kendall, M?rrlyn Seefeldt, Stave Lemme, Tom Linc_iq-_zis,t, Hill Ta;~p~r, .Ti-n Fleming, Councilmember Tom Perrault, Dick Van Allera, and Town ^_.11ig. EYECIITIVE DIRECTOR: Ollie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE .TtTNE 1~+, 19D5, IDC MINUTES, 3,r.ONSIDERATION TO HEAR AND ACCEPT THE MONTHLY' IDC FINANCIAL REPORT, 4, CONSIDERATION TO ACCEPT THE LETTER OF RESIC,NATION FROn" JOHN MCVAY, 5, OLD £USINESS: a) Exer_.~_~tive approval of new IDC members Dick Van Allen and Tom Ollig, hi Disr_.,_iss far direction letter from Attorney Pa~_il Weingardc~n . c-:l Discuss f_or direction letter from IBC Member .Tim Fleming, NEW BTISINESS ; a1 Consideration to elect a Vice Chairperson for the IL:C, k; i RRE Subcommi t to+= R?pnr°t , cl E:iucati:~n »_zbcommittee Report, d C~~_aad Cn».nty Network. Report . 7, CONSIDERATION OF PROSPECT UPDATES. 8, CONSIDERATION OF BRE REPORTS: May - Standard Iron - Shelley ,TOr~nsors FSI - Ken Ma~.is 7~-one - Bondhus Corporation - Arvc Grimsma Tire S:rvir_:e Eq;_aipment Mfg - £ill Tapper Hoglund Transportation - Jim Fleming :T~ialy - RTSP - Jnkara Mr_.Vay Aropla~ Corporation - Harvey Kersdall AMP., Gr:zup - Tram Perra~_il t N~:ht Month - Lake Thal - Arve Grim-_stna Rair~baw EntE=rk7rises - Steve L~=mm~ R~:mmele Engineering - Ol1iF~ Koropc;kaak Docor..~tiv.~ Sc~rvic.;e - Ollie Kor:zpcha'_.:- Cant inuo-d • ~ . t~THER BCTSIHE.=S ~~1 Tjci Chc~mt}E'r frnm Dalr k~) OthRr, 1(J, Adjnl_~rnm~nt. • me.,^ting t~?~3ay. August 17 mew Ling, s~ssak~r Carrl~g ~.P C;:~l~.rs2 ~~ • A•1INUTES MOF~TICELLO INDUSTRIAL DEVELOFA9ENT COMA"ITTEE Thursday . ,Tune 15 , 1995 - 7:00 a .lr,. City Hall PrEA1LER~1 PRESENT: ChairpErscxl Jahn A",c Jay, Vice Chairperson Kcvir~ Batt' , Tr•casux~er• Rcri Haglund, Sii`11Gy JciiiiSCxi, Arve Crimsma, Jay P9orre1l, K`n Maus. Bill Tupper, and CauraCliilC:iTlb~r Tam Perrault. MEMLEP.J CILwJE1VT : Dan Smith, Harvey Kendall , Alerrlyn Seefeldt Steve Lelnme, Tam L1ndCjuist, aiid Jiln Flemlrg. STAFF PRESEPIT: Ollie Kcrapchak. CALL TO ORDEF~ . Chairpirsar~ McVay called the IBC meeting tc_3 order at 7:08 a.lr~. 2. CONSIDERATION TO A°PROVE THE MAST 1°, 1005. IBG .~tIIV'UTES_._ Ycvi.i Daty made a motion to approve the- May 18, 1035 IDC ;nir~utes. Seconded by Sill Tapper ar~d with na additions ar iarrE'.Ctiara3, the i,11n11tC::i WE:r~"-. approved as wr itt~.il. 3. CONSIDERATION TO HEAP. AND ACCEPT THE MONTHLY IBC FINANCIAL PEPOPT~_ Treasurer Hoglund reported a monthly balance at P9arquette Sank. of $7,193.34 and a monthly balance- at First Lank. cf $3,322.31 far a fatal of $11,121.85. The IBC has na outstanding billa. Ken A9auu iuadc a trictlori to aCCLpt the iilarttiiiy iDC firiaricial rer;art . Ar Ve Grlallc-~iriv seconded the Irict7.an Arid 6V .1 th iia addltlt_3iiS ar Carrc^CtlaraS, tiiC fliiaiiCiai rLpart Vr'a~ aC~=epted aiid fiiCd. 4. OLD S~SINESS: aj ~~EBA `•~ear•-End Firan,~:;ial Repcx'ta - Korapchak repcrted t.ie EDA Cl'lEF 1335 Cash F1avJ pr a~ec flan ~J ~: l~.ln:.] YVlth t11G 1J34 year-end cash balance of $203,584.73. This figure gx'eat2r triari pra~ectcd becaixse tiie MuiiC-:i` TiiE_--'a.ti'2 Laizii wds prepaid in 1994, earlier than expected. Eiitfi 8:~tlillat~:-d i'2Vc.riL'eeS aiid exptrilditax'e~, the cxpcCtF~d CMEF cas~i balance, December 1935 is $255,288.4x. Additiariaily, FiarapCiiali.'. gaV2 ari aVC:r V1cY~ of tiic ~3aybai.k.~, x"c'Vc:iiLl"c'S. cand eX~,(--,Flidlt"Ilx'e~ of foie. LLA~ aTi..a SvL,Ru .iaaiiS aYid x'~:partt::d balancers of $i~i?,~i-~i.~.+.20 fC:3i` tiic= ~iDAC-i~~I lean ar~d $54 , 404.27 for tine SCERC--Araplax lean, Calr~bir.i,.g the $100, 000 Liqu.ar Fund Apprapriatiar. far ~ nn~ +~ +.,t- 'f - + i t +:, .-. a,~ ran c+ 1 JJJ . ~ 1E.-'-' ~v d.,. .a iria~uxl ~ of aG'al.iaale s uiiCaa or vi•~ i• utlllZatlan i8 $47 7 ! Vx2.41 ~sartj ~3Ciiai~. x'Ci7ils`idcd iDC • iriCirili.~"icx'S taint tiic CMEF viA1dF'ZiiieB read t~~le ciiiiluai Page 1 arl 1~ y~,.~..,.,~. llotivever, 1G' EDn ~e~..~s ~: le ria~l u ro . l L. a u 11 ~.. 1 1 vY ~ u l d 't 1'~.. ~ `Z i ~- ~ r~ -~ ~ appi•avC~ llti: ~xperlUl Lur ~.: lJf adults VnG2'1 dollarti~ beyarld tl'~ie guideline if a quality indust~•ial fundiri~ . iSeri Maus sugge.:~tod tiiG RDA 1t,iiiSlric;+S i'S;:quC:it~:d carlsider atrieriding the Uuidelirles to allow arl arlrual cxp~'riditil.i'e rhiy a pe%'Ccrltag~' of tile: cavaliabie f~uridlrlg. Arvc Gri;nB;rii7 rerl'ilridird Tam Pcrrauit grid t`iCii.IrlCii tiiat addltiCiricai CiJri:.aldei'atlara be giVeri «s In :~L/ini~ C<:~.li~ndar° years rlo dollars are expended or utilized. I':oropcilak elated tYic LDA has reduced the ar.rl~ual Li:~~z.cr ~"ur~d Apprapriatian request from its original 20C,JC0. Also, the Guidelines read the Caur:cil i~as the rigi~t to requeUt principal payback cf file utilised Liquor Furlds. All local, state, and federal soars paybacks are cur•r~:nt. ti•; Reeuback „reap Mem ers summary: t ' ' for BRR ~ 'fast evaluation - AT ' ~ .J t-, .-. L, c ~-, 1..;.ce cr•owu gatll~r•irlg vditll rla real m~.~tlrlg pu;`°~losc. Suggestian far future a social arld a Y~lot-spat issue. c} IDC Barlquct Speaker - David Landswerk has be~=ri carlfirtned as the guest speaker and Marquette Bank has agreed to aparlsor the sp~aker• (darlatiarl of Y1 , 000) . d j Economic Development Pa~'tnership cf 6~lright County - Korapchak circulated the 199T AnrZUal R>rpar•t arld added treat tree pa~•tnership is in the process of rlir•ing a part- time staff person. maize partnership's office will bt: Plant Ad;nirlistrati~ri NSP-Manticella cuted at the lc ~^ l l U l.Ll ldlrl~ . 1•1L1J vY (~:J d~{~1dGd {~•.ly tli~ G~t.3~rdlnelllVlV l' • 1rt n.iili~ office spacclequip;nent were affered by both Gds°ight- Her~rlepin Electric, Rockford aril the NSF, Mcr.ticella. Th: partnersrlip did adapt a resclutiorl in support of the Red ,.ir~g dry-cast star•age i:3su~: last year, It's ~~~=en taug}~; «s the year has been spend breaking-dav,rn turf bourl•dries. Adc~iticnally, a revolving loan fund is b2irig estatilit~hed fz°ani paybacks of thi/ ^atarldard Iron loan. A ,~«:etirig was held with bank officials to determine •r3rlat type of lean would best serve the needs of the county, yet, ;nairlfiairs :~13iipllClt`y' arld Cast-efflCienCy . i'liv iTiark2tirlg Ci.liiiiriittec' wiil bE: da.Irig a pz'cserltatiall to the vity CaurlC:il saT' .j'.-~i:.+.~.'~ ir-i e;nbC-'rship rc^r2::: VJcli tiii:l beforC tiie .July iDv ricCt iriy . Eorcpch~lk asked members if the IDC would carisider partial payniCl'lt of the Moriticella me;nbersiiip due: of he IDC cor~t~°ibutcd 1,5001. Last year, t appraximately L. L, M50~i tiiwai'd triC yi r 500 du~:`.~. iivi'apCriak ti rid lr'stand:~ file "nayor has pr'cbleins with the benefits. Korupcrlak said 'vJltriallt i:;u dall~it 7 tii~ pr`ijgr a;ii:~ tJ'c'lrig irlltiat2d ~i`y' tiie~ Par'triership are duplicates cf Monticello prcgratns. iia%`apCiiak iia::~ rlat .:aCeri Citlici' ~'vr iCJ~.`ilt va~ilrlty Cairi;ii~U.nitiea as developrnent; however, strial major cc;npetitors far indu 7, ~ vYltrl tilt/ aggr'C SJl v~ appl•ua411 of A1F./i~r~tV ll1~ uild ~'r 1t::~ r1C VM administrator, Yoropchak seems treat to cizarlge. Tree ;naja;:•ity c.f industries interested iri Marlti::ella de:~ire a location oat-side Her~nepira County grid they tnent:iorl • Aliie r't`v'iliC cam. ~-~ are vpt iCirl. A bas ii far meir`ilc r'Ciii~/ i'~:rie~vai Fagu 2 IDC r~Ir.uTE JU:7E 15 , 19 ~ 5 iS `vViaat'S yoGd fGr the TJsIx°lght CC3uiit'y' 1S g~3Gd fGx' Mt:JTitiCeilG, nalTiei~7, the tax i'Ja~+e. i~cri ~%ia~Li+~ aC,J'x'L-: t:UJ. axi.e cited taa~: example Gf the Wal-Inart Distx'ibutiorl Ct:rlter +' ~ th'~ tG;~iriSiil .c.•a ciie Vvitai 1tS prG~%G::ied 1GCa~lijll iii c. p• ~~ Y JGiinson SclGd renewed membership us a vaillc': jildgeincrit 'rlTitii tale Ct7 ilii3l ned CGriS].de rat iGriS t he dGl lar alliGUiit f Ci i' d'ii e~ r program duplications, and KGrapehak'a experience, time, 7.~ 7,~ s-, ,-, and energy cis a EGardme;T[ber . Tale IDC e`aiCvli x'`ai~.~ed taa..: CGUncil to participate grid if asked, it vvas a likelihood ,., , . , the IDC v~GUld consider joit:t-participation favJi:`c,~•~.y 5 . NE~~ EL'SINESB a) Discuss response fro;n Attcrny Paul :~Teingard~:ri - c;x't~pcilak dlStrbuted a CC%py Gf flit-' lt`'.tt2x` x'eCSiiT1d yeSti:~rdu'y' d'a prepu;:•ed by Wf`irLgardetl's a:3SC;L%late . a~ttGx'nc: DE'.nri15 Dale=n. Tillti a i'eSpvnSe tG IDC .`xLieStlGriS. Tiic itf--'Ire L•iaS deferred to file July agenda. Ron Hoglund iriform~:d 1i1211is`.ier.r~ Vviieii lndl`v'idlialS are Iricm%"3ei'S Gf raCi'i-px'~sf It - ~-.. C3 %" daliZatiGnS Gr are VGiiiiiteCr,^-~ taiey'i'e CC3VCcd i.%iidE~r tiiEix' ~%ersoraal,'homeGWi1.''.r`.--.` policy aT'ld Lllnkix'C31ia. nS directGrs, ax'e mC.mbex':3 Gr file U'rganlZatiUri at i'1Sk fGr SC.IiiCl~:ing CGntr1i3t1t1Gii:a fGr a i1Lsn-x'eglStex'ed pi't~flt t}x' nGn-profit organization? ExeCu.tiVE' L ~UbCGlnmit:tee Repiii`t viicilx'perraGii I~1C'vay x'ep~".%x'ted tale SUbC GIlllrtittee Ctf RGri Heglurid, sic JTi DOty aiGr GpCiaak, arad iiiinSeif Inet t3a1 Ma`y' ~1 . 1~~v. Tii m.:..-. SL1bC":GInlr~ittee x'evieVvE.:d the raames Gf BGb iR'~GSfCsrd. ivas~ Dllig Charley Ffeff~r•, Terry Bar•r•ett, slid Brad BGc:~:ex' as prospective IDC members. Thy: IDC currently has fifteen illemiierS! file guldcllneS State Ir~t?.Ili%3erShip Gf i~-i~. Tile subct3inirii ~' L•- 7 - +-,. -.-., ttf~e felt the need tG aadVC lrit~iio~ii•a.a r epx'esentatiGra gild i'eixi7.u':i l Gd %iGr vpCiiak ChvC~. Vvltii Bo12dh~.iS vi.1x'pGx'iatiGn Ux' Sunny FrcSh for iiltere:st ~/Z1tii tiiE: IDC' S iiit~x'eSt tiJ establ i:3ii a raetLVGr kliig gx'c;ap slid tii~: ~ Eondi'iaS CGrpG ratiGrl In t%l C3Se ai'eaS Dl::k experience oa. Vary al leli ryas cGntacted and appears tG have ira ~~ex'tySt . IDC Inelnbers agreed boti^a Van Allerl a~ld Ollig ~'3erc good CaiididatG'S. Membars VvcrS asked tG tiit3.liC.%it c?iAdltlGritii natr~es for c;orlsideratiora. ve;,cndly, McVay x'epGrted th e :SLibCGlniliittee d.iSCl1SSE?d file organizatiGrlal fLinCt]iira Gf tilC IBC as a non-iraflueratial group. Further i~iSCi1SS1GT1 ,,:... . ,.:.-, the IDC ~.-..~ ..,. -°:rof ; ,- ~ - u.~a~ta,. cd around e...c~.Giriilig a ilval r i ~ Cac~lelG~ilieil COx'pC'3r~:ltitJrl Gx' Inerging Vvltii ti'ie EDA Cr tiiG HRA. Ti11S S'tt~'iiiiTled friJ;zl a rer%~ated rei3lleSt tG car'iiiai"k C%r pui'Ci1dSc. land for a future. industrial park. Notiig timE for• n-, ,.... z. •- - devLiJplii'iit a. U. a. ~..tadSc; axiiiex«tii~ri, ~,Ciriiilg, ai~i .t constx'uctiori of utilities-~ arid ara adet~uato tx'arl;~portati;~n uyS teii~ :~i~.k::Ct:%iiiilii tt2c I/I~lilM%~x~J felt it liia`y' fie.%e Z•r•` ragC u . Irv r~iINUTES 3TJA3u Z5, 1~~~ ~,.: lp ~ t•~(_:vii`y`r I1i471idt 1~ iV/i~E~ c=(:C_;%iCiilllE~ Ea~FV1iE1i;CCiE:ii~ _ a 1CiiSCiCE.i ciSr.Gu ~~77 } '1 1Gl•E_. 1~Z~1_711 Afl CiYa. L~L.~ Vaa..,A41..E 111Q~ ~J 1111" _: EJiIi~JR1J J.CJ Gl t'~~ iT ~,' • Y t ilE ii~liiC ivi' ;G:~1 ta.vii ~ T,- - l:. - tl-.,- ~ r (~:+ll`y'i1~iEj ~.;GVvc.i ~ rill E:iiuCili'~~ c~ i::i ~11~ r rasa i;:itzE~. ±t. T,; - ;~t • , • ;-., i'ci^~_-''ii ~ iiiGi ~E~i' Ga. _ JG J~i:~(:v'T1Giii i i i t y ~~-ti%iitjlaii~ . Tiif.: L,.l ~111icLtF i'i_:a Lii t 1S 4i sci~E.: i`GC~L1 C:}iGii. Iii ttit:: I'iicaiitl3ii2~ tJY'~dI117.ci.t.iGiic-li i'G:~~i11C~iii'c' ciilCi ia.~-vfit>. r1'%~' tiviii C1lci1:.L-~ iiG CT'iG11TT~`c Z~ii~a C~GI"Idt1GTI~ iGC:' E-'.CGiit3Cu1C; .'~E~VE~;].C;~iICTF_'Ti~ ri . ^THEP. EUSI:VTS. S S. lEJy ~~~.•± ~_J ~3 CAC~~E-~J i~11E~}~.J.L\L S\G ~.%EJ1 1~.~ Y`IG t~~ ~Q1.31 ~1.~L l{J L11~ 4 EA1Y CiicGt iiZC~" aiG T'E_%~3 C:iiczn T'2~3Gi tz'C~ c1J.~:;CGClliiilt~.cc'- i:. i7c~lli'Zi c- %~.+i E~ i%~i~i k3c -_;E~],EG'fGfA aiZCl CIlGE:t_3.i1t~ Eid~ti--'c.~ Gu'~'lE~c~ll~E~a. ~DJ~LTOr7r~fENT . Tal~~ IJC mE~:~tirig uc~jGar.iird a~_ ~:4~ a.rl. 05~\~~ ~iiic: ~~vT'E~Z'",.G'iid~.t IrJi ~'iiri'GLltIVC i~iT'(3C.~~GT' i~Ql~-G Z • July 10, 1995 Monticello Industrial Development Committee ~ Ollie Kroopchak Director of Economic Development City of Monticello 250 Broadway East Monticello, MN 55362 Dear Ollie, It is with regret that I am resigning my position as President, and my membership on the Monticello Industrial Development Committee, effective immediately. I can be reached at my residence in Monticello (612) 295-3248 or P.O. Box 425, Monticello, MN 55362. Sincerely, ~% ~.. John D. McVay President IDC • MONTICELLO IlvDUSTRIAL DEVELOPMENT COMMITTEE 1995 MEMBERSHIP Kevin Doty Vice President, Marquette 106 Pine Street IDC V,~c~ Chairperson Bank Monticello PO Box 729 Monticello, MN 55362 Ronald Hoglund Agency Owner, 204 West 3rd St. IDC Treasurer American Family Ins. PO Box 67 Chamber Chairperson Monticello, MN 55362 Sheldon Johnson Superintendent, District Office School Dist. #882 PO Box 897 Monticello, MN 55362 Donald Smith Editor/Publisher, PO Box 548 Monticello Times Monticello, MN 55362 Kenneth Maus ~ Owner, Maus Foods 508 Highway 25 South ~..'oC v; ~. C`~o.~.^~s~.s ov Monticello, MN 55362 Arve Grimsmo Owner, Peterson- 530 West Broadway • Grimsmo Funeral Chapel PO Box 815 Monticello, MN 55362 Jay Morrell Owner, M & P Transport PO Box 477 Monticello, MN 55362 Harvey Kendall Retired 108 Hillcrest Road Monticello, MN 55362 Tom Lindquist Vice President, 707 Pine Street 1st National Bank PO Box 239 Monticello, MN 55362 Bill Tapper Owner, Genereux Fine 212 Chelsea Rd. Wood Products, Inc. Monticello, MN 55362 ~ ~ ~n~zr ~;:3 ~ Ct Merrlyn Seefeldt Co-Owner, Electro Industries Monticello, MN 55362 r~ IDCMEM95.LIS: 7/13/95 Page 1 Steven Lemme Jim Fleming Tom Perrault City Council Dick VanAllen Tom Ollig •R,ick Wolfsteller Jeff O'Neill Ollie Koropchak IDC Executive Director • IDCMEM95.LIS: 7/13/95 General Manager, The H-Window Company Attorney Employed at Marties Farm Service Bondhus Corporation Bridge Water Telephone City Administrator, City of Monticello Assistant City Administrator, City of Monticello Economic Development Director 1324 E. Oakwood Dr. PO Box 206 Monticello, MN 55362 2655 99th St. NE Monticello, MN 55362 631 W. Broadway PO Box 1032 Monticello, MN 55362 1349 Hart Blvd. PO Box 660 Monticello, MN 55362 316 Pine Street PO Box 298 Monticello, MN 55362 250 East Broadway PO Box 1147 Monticello, MN 55362 250 East Broadway PO Box 1147 Monticello, MN 55362 250 East Broadway PO Box 1147 Monticello, MN 55362 Page 2 IDC MEMBERSHIP 7LJLY 1985 TERM PAEMBERS Der:emher 1995 Tom Linr_'~q~_ii~t Harvey Kendall .Jim Fleming Den Smith Tom Ollig Vac:ar?t Seat f John McVay) Docemk_:er 1996 Merrlyn Seefeldt Bi11 Tapper Arve firim~s~trj Ron Hogltand Ken Mates D:~r..~1mkler 1997 ~~cvin Doty Steve Le.mm? .Tay Morrell Shelley Tohrison Dick. Van Allen Standing Memher t'hamber Chairperson (Ho~lr~ncl} Mayer (Co~_incilmetnk_~=~r• Trim . Perra~_~l t ) NON-VOTING Exec~_~tive DirF~r..tor Ollie Korapr_.hak S'a.pport Staff Rir_=k Wnlf Steller 7eff O'Neill FLEMING LAW OFFICES JAMES B. FLEMING Attorney at Law 611 WALNUT STREET, SUITE 3 P.O. BOX 1569 MONTICELLO, MINNESOTA 55362 TELEPHONE (612) 295-8234 FACSIMILE (612) 271-6192 E-MAII. jfleming@monticello.polaristel.net Julia Harding, Legal Assistant ntso admittm .n Nebraslrs June 14, 1995 ...,,. ,. Mr . John McVay, Chairman '~'~>~~< ...:: . Monticello Industrial:::.1?evelop>dent::;Cai~if'~i~~ttee :.:.:.:.::.:..........:.~~..:::::::~:::•.. City Hall ~` ~~`''..•.•:•:•:•.•..:•:•:•:. .....................•.•.•.•.•.•.•.•.•.•.•...~,....:.. Monticello, MN 5536.x:. • ''`:> Re : May, 1995 Indt;~''str~al Development :::committee Meer~~ing':;., Dear Chairman Mc~ay: Since I will be~`'.unavoidabl~ absent frestil the IDC>tneeting, scheduled for Thursday, Jun~'~ 15, 1995, r<; wish td::express nay concern over matters occurring at.<~'the last regul'~,rly scY>ed~.led meeting, occurring., May 18, .995. • :>>. :. ..., ;.• .. :. ::. As the mir~ute:s::_ of: the;:me:etng:::::rQflect:;: a mkt.on::wa:s.:..rec,~ues.ted..:b~ Jeff O'Neill, ~Y.,s.sista~:t ~'~:~•y ~d~~.~a..~:~rato~,:.>:call••~.~g fQx':~ca.ty:~~:a~:~ ~p•`~ursue the develo~3i~~nC::::.of.:_::~,:.~.~~~;d~;.::.Qutlet: M~.11 orL:..the:~:.e~s•t~~n ©ttt~3~rts of Monticello. ''T~e...~iric~~tiri~:::w:~~~~~made, se~arided and~~~passi~d•.•~.ri.•.tl~~.:-absence of several IDC memhers`~`~who~'Jeither had 11.q~ attended'"~ne'~`meet•ng, or left prior to the motion due to the lengtk~~~::q:~~:~:.~he presentation and discussion of this issue. """"'~`~'"''•~ Re ardless of the •'• ~~ ~ ~ ~ ~ ~ ~ ~ " g persona.:~e:.rs~ect~:ve..:af:`eae~;.~f':~::.the members of the IDC, the manner in which this motion was requested and passage obtained concerns me. Personally, I have not heard sufficient information to induce me to recommend such a development. I believe that a significant number of issues need to be cleared up before I would vote in favor of such a proposal. Not the least of these are the impact upon our industrial land supply, labor force and need for additional police presence to patrol the increased number of shopper related problems such a development would inevitably bring. A number of local business people not involved in the meeting have also advised me that they would strenuously object to such a scheme, particularly one which calls for the imposition of a city sales tax to fund it. • Mr. John McVay June 13, 1995 Page 2. However, my concern lies more in the manner in which this matter was brought to the attention of the IDC. A number of IDC members, in- cluding myself, had already left the meeting to attend to their own business affairs by the time the request was made for the motion. There was nothing in the published agenda for the meeting to suggest that this issue was going to be brought up. The agenda that did exist had not been completed before this matter was interjected, taking up a substantial portion of a meeting_.:at:::;.which we apparently had other matters to discuss . Additionall.y.T:°:gtiie~.~:ion whether a motion of this nature, directing city staff to ta~~~~~c;~~iari of this sort, is within the purview of our responsibilities as a~::~dvisory body. :~:~>~•: ....... I am very unhappy over_::.~:he.,.manner.._.in.,:t~~ilch.,.this...mat:tt~r:;:was presente to the IDC . I wish ta:: ~a1ce. ,~.y...d~.sp~.easure. knawa~.....a~nd to ad~.%s:e the IDC that at our July meeting`F'`I~~`ntend to in~:r~c~.~ice a motiori~•"~'~quiring approval of a request contain~~~.g at least 10 `dais notice befor~~'~'::the introduction of non-agenda item~~ by, city staff ctir:::other non-ID~' ms~nbers. I have attended too many Trieetii~.~s of the IDC;: ~z~ich have bec,~time bQ:~ged down with last minute disc~:~ssions'~:;;of this type::.; I do not,;`believc~:. that we can continue to perform our~~:; function properly if ,::this pra~~tice is to continue. My motion will `also request::::that docu~entation oi~.isuch items be included i~ the agendas.., for regul::sr IDC meetings and ~~,hat these agendas be p?~blished at l~~st one : ~~ek prip'r to the mee~~:~ng. At present, I receive mine on the everii:i~.g prior to the meeting`:::,: Under these circtittnstances, it is ''`:quite ~ o~~ten impossible to rev~:~w and familiariz.c myself with the contents prior t.ci the 7:00 a.m. meetii~~s the a .............. ............ next d y ::.:.:.:.........:.:.:.:.:.:.:.:...:.:.:.:.:...:.:.:.:.:.:.:.:.:.:.:.:.:.:.;: :..:.:.; ;.;.;... .;.;.;.;.;.:.;.;.;.;.:.:.:.:.;.:.:.:.:.:.,.;.;.:.:.:.:.:.,.;. ' 1 be Yia~ : ~ ..~~'~3h~:~:~:he>:~~:r~t~e~~~m to hear any .Ct~mmeYi~:~:..::o~`~.~~~C~~-ions from I wi l p~?Y... ............. ... .. .. .............: :... , ...... ..,:..,.,:......:.;:.,- other IDC membe~s~~~~c:onee~rriing these isles . ~ ~ ~~~~~°~~ ~~'~~~ • • • • ~~ • ~~" JBF/jah r~ • • JUN. -14' 95 (WED) 14:36 OLSON/USSET P. A. TEL:612 925 5819 P, 002 OLSON, USSET, AGAN & WEINGARDEN P.L.L.P. wTTORNEYS wT uw PAUL A. WP.WGARDEN• CFIARI.PS T. wGwN DAVID J. USSBT THOMw3 B. OLSON~` DENNL9 E. DALEN ~+st5ew esdCi.d Ga Teil S,.e:Sa • M58A GiAi(~ 8sl Pmpsq speaoG.t ouR Pa,e No. 7 9 7 5 (8 3) 5U[TE 590 6600 PRANCE AVENUE SOUTH A~(NEAPOLIS, MN 55435 TELEPHONE (612) 9Z5-36x4 FAX (612) 925.58'79 June 14, 1995 Ollie Koropchak Economic Development Director City of Monticello 250 East Broadway Monticello, MN 55362 Re: Industrial Development Committee Dear Ms. Koropchak: I am writing in response to your letter of concerning the Industrial Development Committee • comments are based upon the facts as outlined in in our discussion earlier this afternoon. LEGAL A5SISTAKIS PEGGY J. wGAN sums oaJ. ALLEN DEBRA L. BA1Q~ PATSY A. PORSLAND Im-t PORTaI BONNIE 17WNNES ROCIQ~ORD OPPiCE TELEPHONE (612) sT/~01o June 6, 1995 ("IDC") . My your latter and Based on those factors, I believe that the IDC does not have a sufficient connection to the City to qualify for the City's tax exempt status or to be covered by the City of Monticello insurance policy. The IDC is a separate independent organization, and is not under the City's control. Although the IDC and the City have business dealings together on occasion, they deal with each other as independent entities. The City Council does not control the IDC nor appoint its members. if the IDC wishes to obtain tax exempt status so that contributors can deduct their contributions, it might be able to organize as a non-profit corporation and obtain its own independent tax exempt status from the Internal Ravsnua Service. Another alternative would be for the IDC to become a committee of the City. This might not, however, give the members of the IDC the independence they now have and might wish to retain. As far as insurance, I seriously question whether the IDC could even come under the City's policy if it were to be named on the coverage sheet. You might wish to check with the City's insurance agent. It is more likely they would have to obtain their own insurance policy if they Trish coverage. •-1 JUN. -14' 95 (WED) 14:37 OLSON/USSET P. A. TEL:612 925 5879 P. 003 June 14, 1995 Page 2 Please feel free to call if ycu have any further questions. Very truly . Dalen DED:lld JUL. -19' 95 (WED) 09 ~ 53 OLSON/USSET P, A, TEL ~ 612 925 5879 • OLSON, USSET, AGAN & 'VVEINGARDEN P.L.L.P. PAUL A. a-EQZGApDBx~ CHARLES T. ALAN DAVID J. USSE7 T8a6Ua D. OL50N" DENMS E. DALEN ~WBA CrdIW Qnl Tell Y~+da • MBBA Gnefiei Ns1 Pnipaegr 9~ilit ArcORNeY3 AT LAw sacra s9o 6600 FRANCS AVENUfl SOVfH li@iPiBAPOLLS,I~N SS133 TL'LePHONe (612)'Z3.36~s AAX (612) 9155879 LEGAL ASSLSTANTS PEGGY 1. AGAx SSDILEB J. ALLEN DEBRA L BAli3~ PATSY A. 1~0.SLAND 1CON1 PORTIrT ouR an,E xo. 7975 (83 O A TELEFA% July 19, 1995 Ollie Koropchak Economic Development Director City of Monticello 250 East Broadway Monticello, MN 55362 Re: Industrial Development Committee Dear Ms. Koropchak: TELEPHONe (612) 4?7-5010 I am writing as a follow up to my letter of Juna 14, 1995. • You inquired as to the liability of individual members resulting from the Industrial Development Committee ("IDC") not having tax exempt status when the dinner tickets are sold and presented as being tax deductible. The first thing that members should be aware of is, even if the IDC was qualified as a tax exempt charitable organization under Internal Revenue code rules, the entire amount of admission price for the dinner would not be deductible. Under IRS rules and Internal Revenue Code statutes, only that portion which represents the donation would be deductible. In other words, if the tickets sell for $100 but the dinner is worth $25, then only $75 would be deductible. To the extent that anyone receives value for money paid, there is no tax deduction. In my opinion, the members could be liable to anyone who bought tickets for the amount of tax benefit the individuals would have received had there been tax deductibility. This is assuming that the individuals who bought the tickets bought them in reliance on the purported tax exempt status of the organization. I strongly suggest that until such time as the IDC does obtain tax exempt status under the Internal Revenue Code and rules, no claim be made that donations are tax deductible. In fact, I strongly recommend that for the next dinner the tickets bear a notation. that the purchase is not tax deductible. P, 002 • JUL. -19' 95 (WED) 09 ~ 53 OLSON/USSET P. A. TEL ~ 612 925 5879 P. 003 I have not researched as to whether there might be any Internal Revenue Code penalty. I suggest that as to previous years, since the question has not yet arisen, it is unlikely to arise. The members can protect themselves in future liability by taking the precautions outlined above. Please call if you should have any further questions. Very truly~oyr~ E. Daleri DED:sa CJ • IAC AGENDA 7C1LY 20, 1?05 7 • Consideration of Prospect iJpdates ~ a} High--ter_.h manufacturing company - Owners indicate:.' the partnership is mast interested in the HRA lot f_ inanr_.eci witho~_it the i_zse of TIF. Attorney Bub~_zl will px•e~3are a pzzrr_.hase agreement anti rate baser_i an a negotiated land price. Lanni write-dawn tied to a clamber of jcbs crF=atr~ci ar a payroll range aver a negotiated time ~3erir_.d. Ori:~ cancsrn Mr. Harwood raised is the availability of skill.eci wc3rkers in the area, The partnership is cartir~.zing to prep~xre development r_.osts prior to meeting with the .finanr_.ial cons-_zltant. 15,00:) ~g ft facility, 34 jabs iri 2-? years. Average wage X12.00. {High-intF=rest level) b} Gary Singer - City st~~.ff met with the two ~;artners af_ this wrsolesale dealer of plumbing, wells, and septic s,.zppl ie The r_.nmpany prapas:~ to r_:onstr7.zct ~~ ~0 , 000 :~~s ft wareha~_zse/office with future plans f_ar a shawr~at:,n. Ttze carnpar~y h~~zs contacted Charlie Pfeffer far appra~imately 2.6 acres of I--1 property alarrg Fallon Avenzze . Th;~ 17-year old camparsy has foci 1 i t i es lar_:~~ted in Hopkins, Egan, and Blaine which combined i:~ aver 40, 000 sci ft . Tt^~e camparsy employs 70 fzzll-time pex°<~atznel • and the Manticell.a location would employ 5-F within 2 years. Interested in TIF ar financial assistance. As indicated by a new provision tc the TIF law, the HRA i:~ unable to consider TIF b:~cazzse for land which ha>• ~-~ad ~~ green acre classification f_ar the past 5 years the Ecanr_.mir_. nistr•ict must be created for man~zfacttzring jabs only. The company continzzes tc negotiate with Charlie and is interested in other a:.sistaric:e {GHEE) . {HicJ~i- interest level} c} Pam Brar_.kettc-~ - Maple Grave individual lacking to :;tart a micro-software information affir_.e, Leaking fc~r rental affir_.e spacF, and start-up financing. tt) Missi:ssippi Shares - It is anticipated c:lasing far this, project will be 7~_zly 18 ar 10. e) Factory a~_ztlet mall -Fen telephone r_.tanversatia:-s Letter of Intents ar proposals relating to land acgzzisitian h~~ve beer rer•eived from Shawn Weinard, owner cif Martic:ella Comtnere:e Center arsd from the owner of the property in Clearwater. Major canr_.errs: Monticello - .cam~3letiazz acid f~_znding of a fzil l- interchange and Clearwater site - ,,^am~:letiazz anc:i fzzndinc~ cif zztilities. Orly two sift=: under cor~sidcratic3r~ by arse dc-~velaper, Finarar..ial options f_ar frzndinc, an irztercl^~ange w:~re re:~earcheci ~_.y City Staff. Sitr.. sE~arch taki_~g lariger than cievE.~lat7e_r•=; ~~r_tic;ip~.ted. Pane 1 . IDC A~+ENDA JULY 20, 11'~f5 P_.. CONCIBERATI~:N OF BRE REF~?RTC a1 Re;nmele Erigine~ ring - H«s sired ~ new plant m.anagF~r from califorr~ia, front= Fa~al. .Jt3el Latlalle rYsigi~e:i fr~orn Remmel~~ and was hired by Mike P~,gil, a farmer Rctnmele Vi;~e President. Remm~~le Presid`nt Tc:t;, M:~or:..~ has keen c}n .,its-~ at the Monticello plant d~_xrincJ this ak~sf~ntF~F_ t_i-nY, k::) Dect~srative Cervices - I talked with .Terry Andr~_isr_c_3, Thy r_.ompany will be relocating to Becker upon rompleti:~rx of their rew facility. c) A joint r?ception will be hosted by ttip IDC far r-~f-w ir~d~_istrial klttsinesses: Polycast, Fay-Mar, Micro-Tech, and Midwest Graphir_s, Bate to be announced. • r~ LJ age L