IDC Agenda 10-20-1994.7
IDC AGENDA, OCTOBER 20, 1994
NOTE CHANGE OF MEETING TIME from 7:30 a.m. TO ?:00 A.M.
This change is the result of an executive
decision made by IDC Chairperson McVay.
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• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, October 20, 1994 - 7:00 a.m.
City Hall
MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty,
Treasurer Ron Hoglund, Arve Grimsmo, Shelley Johnson, Don
Smith, Jay Morrell, Ken Maus, Harvey Kendall, Mayor Brad
Fyle, Tom Lindquist, Merrlyn Seefeldt, Steve Lemme; Dr.
Glenn Nemec, Cyndie Johnson, Bill Tapper, and Jim
Fleming.
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1, CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE SEPTEMBER 15, 1994 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Fay-Mar Fabricators, Inc.
b} Micro-Tech
c) Miley Gjertsen
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dj Quality Welding
e} Boilermakers Local 647
f) Roger Christensen
g) Redwood Falls company
h) Litchfield company
i} Right-Choice Services, Inc.
j) Little Mountain Feed, Inc.
k} Retail Services Corporation
1) TSG
BRE REPORTS:
a) August, Ken Maus - Rainbow Enterprises
b} September, Tam Lindquist - Fingerhut Corporation
c) October, Merrlyn Seefeldt - Electro Ind~_istries, Inc.
d} November meeting - Jim Fleming - SMM
Ollie Koropchak - Remmele Engineering
e} Others
5, CONSIDERATION OF AN ACCOUNTABILITY OF BANQUET TICKET SALES AND
BANQLIET FORMAT .
6. CONSIDERATION OF AN UPDATE REGARDING ZONING/PLANNING ISSUES:
a) Buffer/screen/landscaping requirements
• Continued
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• b} St. Henry's request to amend the official zaning map of
the city of Monticello. Proposed 30-acre change from I-1
to PS {p»blic and semi-public}
c} E & K Development request to amend the official zoning
map of the city of Monticello. Proposed change from AO
to R-1, R-2, and R-3
d} Amendment regulating pole building construction
e} Sunny Fresh request for variance to the yard setback
requirement
f} C/I sewer, water, and storm sewer hookup fees
7. OTHER BUSINESS.
a} Lots 1, 2, and 3, Block 1, OIP Second Addition
b) Charlie Pfeffer's request to address the IDC
c) Chamber Business After Hours Social - Today, 5:00-7:00
p.m., Monte Club
d} Chamber Legislative Breakfast - Tuesday, November 1, 7:30
a.m., American Legion, Bill 8lazar, Minnesota Chamber of
Commerce
e) Chamber Candidate Debate - Tuesday, November 1, 5:00-9:00
p.m., Senior High Auditorium. City, County, and State
candidates.
f) Others
8. ADJOURNMENT.
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• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, September 15, 1994 - 7:30 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Treasurer Ron Hoglund, Arve Grimsmo,
Shelley Johnson, Don Smith, Jay Morrell, Ken
Maus, Harvey Kendall, Merrlyn Seefeldt, Steve
Lemme, Dr. Glenn Nemec, Bill Tapper, and Jim
Fleming.
MEMBERS ABSENT:
Mayor Brad Fyle,
Johnson.
Tom Lindquist, and Cyndie
STAFF PRESENT:
1. CALL TO ORDER.
Rick Wolfsteller,
Koropchak.
Jeff O'Neill, and Ollie
Chairperson John McVay called the IDC meeting to order at 7:30
a.m.
2. CONSIDERATION TO APPROVE THE AUGUST 18 AND AUGUST 29, 1994 IDC
MTNTT'1'R~
• Harvey Kendall made a motion to approve the August 18 and
August 29, 1994 IDC minutes. Dr. Glenn Nemec seconded the
motion and with no additions or corrections, the minutes were
approv?d as written.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
Treasurer Hoglund report?d a September balance of $3,848.21 at
Metropolitan Federal and balance of $2,253.97 at Marquette
Bank for a total balance of $6,102.18. The monthly revenue of
$1,000 was payment for the banquet guest speaker from
Marquette Bank and one disbursement of $39.94 for printing of
banquet tickets. Kevin Daty made a motion to accept the
September IDC financial report. Bill Tapper seconded the
motion and with no additions ar corrections, the financial
report was accepted and filed as given.
4. CONSIDERATION OF PROSPECT UPDATES:
The written prospect update and BRE report was accepted
without further questions.
Additionally, Chairperson McVay added that puality Welding's
current lease expires in six months. The availability of the
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• IDC MINUTES
SEPTEMBER 15: 1994
existing facility and the growth of the company are the
determinants in the decision to expand and relocate.
Kevin Doty reported negotiations continue for lease the second
floor office space within Marquette Bank to Micro-Tech. The
tele-sales office would employ 14 individuals with annual
wages between $32,000 and $60,000. Micro-Tech manufacturers
ear--canals, a component part far hearing aids. The production
facility is located in Eden Prairie. Martie Jones of Janes
Manufacturing will contact Koropchak with the name of a
headhunter to assist with employment recruitment.
Administrator Wolfsteller reported that the City Council on
September 12 accepted the purchase offer of $36, 000 for Lot 4,
Block 1, OIP Second Addition from Miley Gjertsen. The
purchase offer is contingent upon granting the H-Window
Company an extended 10-working day expiration date of the
Right of First Refusal. The parcel is 2.3 acres. The Right
of First Refusal and the Holding Agreement between the City
and the H-Window expired the end of December, na request had
been made for reconsideration of the matter.
• BRE REPORTS:
a) Ken Maus - Rainbow Enterprises, no report.
b) Jay Morrell introduced Jahn and Martie Jones of Janes
Manufacturing, Inc. John and Martie, two of six
brothers, told IDC members that their father, a watch-
maker, started the business in the basement of his hom?
at the age of seventeen. Jones Mfg polishes, tumbles,
and plates fine jewelry and gems. In 1989, the company
employed 40 people. As gold prices increased and with
large operations in New York, the work shifted to
overseas causing a decrease in their employment to 24.
They anticipate to process 500 to 2,000 rings per day
next year.
Five years ago, the company relocated to Walnut and 4th
Street and entered the retail business. They've seer, 200
increase in growth every year. A future venture may
include the opening of a second retail stare in a more
dense populated area. John manages the commercial
business and Martie the retail.
c) Arve Grimsmo referred to Steve Lemme far a H-Window
update. Mr. Lemme reported the company began the 25,000
sq ft manufacturing and 4,000 sq ft see;ond--floor office
expansion last October. On September 24, the H-Window
• will host an open house for employees and the general
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• IDC MINUTES
SEPTEMBER 15, 1994
p~?~blic. The 12:00-6:00 open house will consist of a
barbecue and tour of the facility ar~d products. The
company anticipates the introduction of two new products
within the next couple of months.
The company originally purchased 10-acres of land, the
current facility utilizes five of those acres. Witt. the
$36,000 offer for Lot 4, the H-Window will focus on
making a decision on the westerly 5-acre, three-lot
parcels within the next month. The H-Window will not
stop purchase of the lot to Mr. Gjertsen; however, they
have concerns regarding the potential of becoming
landlocked and question the value of a pole barn to stare
sprinkler system supplies with projected annual taxes of
$6,000-$7,000. Karopchak acknowledged the H-Window visit
and tour by Commissioner Peter Gillette, the deputy
commissioner, Wood Pradu~ts Industry Specialist Dentley
Haugesag, and Representative Mark Olson. Steve mentioned
US Representative David Minge had also toured their
facility.
• After some further discussion and the c_:onsideration of
what might be at stake, Shelley Johr~san suggested and
Arve Grimsmo made the motion to encourage City Council to
make every attempt to negotiate an agreement satisfactory
to both parties for the westerly three lots. Harvey
Kendall seconded the motion. Jay Morrell stated he would
not be in favor of the city holding the property without
any campensaticn as this would set a precedent for other
industrial businesses to make the same request. The
motion passed unanimously.
d} Tom Lindquist - absent.
e} Bill Tapper - Bill reported are both Genereux and
Westlund's growth and all-time high sales. Initiated
through the city, a financial proposal is being
structured for the 17,000 sq ft southerly production and
mezzanine/lunch room expansion. The company is busting
at its seams and the expansion will also reshape the
production area for better shipping. All goes well,
along with the general frustrations. The company
introduced four new-products in Atlanta. The B-puick
products are a drilling machine for cabinetry, 2 plastic
cabinetry accessories which involved SMM and Aroplax, and
a roll-out cabinetry accessory.
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IDC MINUTES
SEFTEMEEP. 15, 1094
BRE Updates:
a) Sunny Fresh Foods, Inc. - In addition to the written
agenda supplment, Jeff O'Neill expressed he felt perhaps
a rail crossing at Locust can be accomplished with the
pull Cargill has with BN. The Planning Commission will
hold a public hearing and consider a variance request to
the yardset requirement on October 4. Members suggested
moving with caution because if the tracks or when the
tracks were abandoned would 5th street be utilized as a
street or for another purpose. Northwest Associates is
preparing land use and transportation study for the Sunny
Fresh area.
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5. Consideration of Infrastructure and Planning Commission
Updates:
The IDC accepted the written update. In addition, Jeff
O'Neill made the following comments:
a) 15-minute Comprehensive Plan Update by Jeff O'Neill - The
process far updating the Comprehensive Plan must .f_irst be
determined and its anticipated the process will be
determined by the first of the year.
b) Pole Barn Ordinance - Because of the late September
Planning Commission meeting, the pro and con study
prepared by Northwest Associates was distributed to the
commissioners at 11:30 p.m. which was too late far
consideration. The commissioners requested a
recommendation from the IDC.
Staff presented IDC members with five basic policy
options to consider for regulating pale building
construction. A pole building defined as any structure
characterized by its woad pole framing and lack of a full
perimeter foundation. With the general consensus of the
need far both a continuous foundation and asethetically
pleasing structures and the IDC's lack of expertise for
specifics, the members requested the planner consultant,
staff, and the Planning Commission establish a standard
footing design for principal structures within industrial
zones. Bill Topper's opinion was a company investing in
the construction of a larger 20,000 sq ft facility will
consider the long term life and value of the structure.
However for the startup business, economics is an issue
and should be considered in an outlined area.
c) Buffer, screening, and landscape requirement along
residential and industrial boundaries - IDC requested a
special meeting cf all parties.
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IDC MINUTES
• SEPTEMBER 15, 1094
E. Consideration of Subcommittee reports:
The written report was accepted by the IDC. In addition,
Koropchak distributed banquet tickets and reminded members
that an accountability of tickets sold will be taken at the
October 20 meeting.
7. Other Business:
The written report was accepted by the IDC.
Don Smith requested that the 7:30 a.m. starting time for IDC
meeting be placed of the October agenda far review. It
appears with the longer agenda, this is conflict with business
opening hours.
8. ADJOURNMENT.
The IDC meeting adjourned at 9:10 a.m.
~~~`~C?
. Ollie Koropchak, Executive Director
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• IDC AGENDA
OCTOBER 20, 1994
4. Consideration of Prospect Updates:
a) Fay-Mar Fabricators, Inc. - Final building plans were
submitted on October 18 to the Building Official for
review. Within the Private Redevelopment Contract for
use of TIF, the beginning construction date was changed
from October 20 to November 20, 1994 with a six-month
period far completion. Gratis banquet tickets mailed.
b) Micro-Tech - Negotiations continue between Marquette Bank
and company officials for potential lease of the bank
second-floor as a tele-,sales office. Gratis banquet
tickets mailed.
c) Miley Gjertsen - Preliminary plans for a 50 X 180 sq ft
pole building have been submitted to the Building
Official for review. Lot 4, Block 1, OIP Second
Addition.
d} Quality Welding - No new information. Gratis banquet
tickets mailed.
e} Boilermakers Local 647 - Requested availability of
incentive packages far prospective businesses. Plus need
for two-acres far their 5-7,000 sq ft office, meeting
• room, and auditorum and 2,000 sq ft for training center
which involves a classroom area and shop for
welding/burning training.
f) Roger Christensen - Realtor looking for a 10,000 sq ft
office/warehouse for distribution. 12-14 full time jobs.
g) Redwood Falls company - Very preliminary. Expansion of
manufacturing facility. Request confidentiality.
h} Litchfield company - Request confidentiality. Looking
for rail and highway. 25,000 sq ft building with
potential of 30-50 jobs. Custom molding.
i) Right-Choice Services, Inc. - Coupon redemption marketing
firm, 26 full time jobs. Looking to combine Buffalo and
Maple Grove facilities under one-roof. Initial building
12,000 sq ft; potential expansion in five years 30-50,000
sq ft.
j) Little Mountain Feed, Inc. - Retail, production, and
wholesale of bird feed. Also sells cat, dog, and horse
feed. Has located in old Central Sota B~_~ilding behind
Sunny Fresh. Jeff Burns.
k) Retailer Services Corporation - Relocation of production
facility from NE Minneapolis. Need 25-30,000 sq ft with
3-4 small offices. Current 25 full time jobs, wage
averag? $12.00-$13.00 ph. Current lease expires in
March. Production of retail store cabinets and counter
tops for customers such as Northern Hydraulic and
Titlewave. Gratis banquet tickets mailed.
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• IDC AGENDA
OCTOBER 20, 1994
1) TSG - Manufacturer and assembler of computers. Startup
company. Needs existing 10-20,000 sq ft building, ane-
two loading docks.
ml Life-Time Industries, Inc. - Looking to lease 5-10.000 sq
ft manufacturing space. Foam rubber dye-cutting. Self
and partners.
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• IDC AGENDA
OCTOBER 20, 1994
5. Consideration of an accountabilit of ban uet ticket sales and
banquet format.
Account for ticket sales.
Banquet format changes: Assigned seating.
Written program brochure description
of industries and insert of a
manufacturer's quiz.
Social located on first-floor.
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• IDC AGENDA
OCTOEER 20, 1894
6. Consideration of an u date re ardin zonin tannin issues:
a) BufferJscreenllandscaping requirements - The Planning
Commission Public Hearing to amend the ordinance for
establishment of buffer yard standards was held October
4. M&P Transports submitted a letter in opposition to
the suggested 6-foot berm and recommend a minimum 13-foot
berm. Koropchak questioned the construction and
completion time of the berm as it relates to the Klein
property development, suggesting berm construction
commence and be completed prior to Phase I development
therebye ensuring an immediate buffer zone to the
developed industrial park. The commissioners tabled any
action to allow time for review of the study completed by
Northwest Associates.
b} St. Henry's request to amend the official zoning map of
the city of Monticello. Proposed 30-acre change from I--1
to PS (Public and Semi-Public} - The proposed rezoning
amendment was approved by the Planning Commission and
thereafter approved by the City Council. A faint
purchase agreement for the 72-acre parcel is between the
seller, Gladys Hoglund Family and the buyers, St.
Henry's, Bondhus Corporation, and Dahlheimers. The
• proposed PS (church) is approximately 30-acres and tha
remaining 42-acres is split between Bondhus and
Dahlheimer. Although the 42-acres remains zoned I-1,
future plans for the property are unknown.
c) E & K Development request to amend the official zoning
map of the city of Monticello. Proposed change from AO
to R-1, R-2, and R-3 - Rusty Demeules of Standard Iron
and Joel Abraham of Remmele Engineering attended the
Planning Commission Public Hearing on October 4. Mr.
Demeules commented that he located in Monticello because
of a favorable industrial park. He sees the property to
the south as a natural growth for the industrial park
because of its proximity and access to bath I-94 and
Highway 25. He said the zoning proposed for the Klein
property was similiar to that approved in New Hope Phis
previous location) which has presented problems. Mr.
Abraham of Remmele agreed with Mr. Demeules. Koropchak
went on record as opposed to the rezoning amendment
stating non-compatibility of the proposed zoning,
establishing a new industrial park location for future
use would only recreate similiar issues; continuous
decline of available industrial property, and referred to
the examples of the study completed by Northwest
Associates for the Sunny Fresh area (,compatibility of I-2
zone to residential and public zone, the appropriateness
• of such close proximity.) The Planning Commission
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• IDC AGENDA
OCTOBER 20, 1994
approved proposed rezoning amendment.
The City Council tabled any action of the proposed
amendment request. A closed council meeting was
scheduled for October 20, 4:30 p.m. for discussion of
possible litigation.
d) Amendment regulating pole building construction - At the
September 6 Planning Commission, the commissioners tabled
ordering a public hearing for ordinance amendment
regulating pole building construction awaiting IDC
recommendation. At the IDC September meeting, members
stated they were not in the position to make specific
recommendation; only, requested the planner consultant,
city staff, and the Planning Gommission establish a
standard footing design far principal structures within
industrial zones. For further action has been taken.
e) Sunny Fresh request far variance to the yard setback
requirment - At the October 4 Planning Gommission Public
Hearing, no opposition was raised. Northwest Associates
presented a study of the Sunny Fresh area, the $2,800
study was paid for by Sunny Fresh. The request was far
a 30-foot encroachment of 5th Street which is currently
occupied by Burlington Northern. The request would allow
• Sunny Fresh to construct a refrigatered warehouse
facility directly adjacent and south of their existing
facility. Planning Commission tabled any action allowing
time for a response from BN and far the commissioners to
review the study.
f) C,'I sewer, water, and storm sewer hookup fees - A city
staff personnel will present the completed study of c/i
hookup fees compared to other communities, examples of
before and proposed fee increases, and the proposed
recommendations to the city council, Examples used are
Standard Iron, Aroplax, and Custom Canopy.
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SEWER & WATER HOOK UP SURVEY
OCTOBER, 1994
BASE RESIDENTIAL FEES
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Gallons/Day
City Water Sewer Unit Basis
Monticello 300 + Meter 300 250
Big Lake 375 + Meter 400 Currently considering
increase & formulas
Buffalo 500 1,000 164
Elk River 1,000 1,300 274
Hutchinson 500 500 Working on formulas
& increases
Rogers 400 1,300 ~'`~ 274
''F' 'Nut~~. ~'3no ~..-Lr~. -~- ~ 1 , no o w ~..~..a~ ..~ X21, sumo-w° ~~ iT~^ ~.-~,,
RESIDENTIAL NOTES:
A. Buffalo, Elk River and Rogers charge 80% sewer access charge for
apartment units and 75°Io for subsidized apartments.
B. Monticello charges 75°!o for multiple apartment units.
COMMERCIAL NOTES:
A. Buffalo reduces sewer access charge by 50°Io after two units and 80°Io after
eight units.
B. Elk River uses the metro table based upon 274 GPD (per unit) x $1,300 per
unit.
C. Rogers increases residential base WAC & SAC charges by 100°lo for
commercial and uses 274 GPD (per unit) SAC (e.g., $300 x 2 = $600 #
$1,000 = $1,600 for each unit).
D. Monticello uses 250 GPD (per unit) x $300 per unit for commercial and
industrial.
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DEFINITIONS:
WAC=Water access charge
SAC=Sewer access charge
GPD=Gallons per day
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• IDC AGENDA
OCTOBER 20, 1994
7. Other Business.
a) Lots 1, 2, and 3, Block 1, OIP Second Addition - Various
purchase options for the three-westerly city lots are
being considered by the City and the H-Window. Plans
are for the City Council to consider the agreed-upon-
options at the November 14 City Council meeting.
f) Other - At the September Star City Conference, the two
repetitive concerns voiced state-wide were the labor
shortage and housing shortage particular for seniors.
The City of Elk River received an All-Star Award and
Marketing Award. Harry Martin, Pr?sident of the Tupelo
Community Development Foundation, spoke of their success
in creating over 1,000 jobs each year for more than a
decade.
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