IDC Agenda 09-23-1999• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, September 23, 1999 - 7:00 a.m.
City Hall
MEMBERS: Chair Shelley Johnson, Vice Chair Tom Ollig, Don Smith, Kevin Doty, Tom
Lindquist, Bill Tapper, Dick Van Allen, Ken Maus, Bob Mosford, and Marianna
Khauv.
COUNCIL LIAISON: Mayor Roger Belsaas.
STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak.
1. Call to Order.
2. Consideration to approve the August 19, 1999 IDC minutes.
3. Consideration of Updates:
a) Mayor Belsaas - MOAA, community center, and road projects.
b) Koropchak -Prospects and BRE.
c) Marketing - Smith/Ollig/Van Allen.
4. Continuation to discuss need to increase the membership of the IDC and direction
thereafter.
5. Continuation of an update on the Industrial Banquet, October 26, and invitation/ticket
sales.
6. Consideration of an update on the progress to actively pursue acquisition of land for
future industrial development.
7. Other Business.
8. Adjournment.
•
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, August 19, 1999 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chair Shelly Johnson, Don Smith, Ken Maus, Tom Lindquist, Bill
Tapper, Dick Van Allen, Bob Mosford, and Jim Fleming.
MEMBERS ABSENT: Vice Chair Tom Ollig.
COUNCIL LIAISON ABSENT: Mayor Roger Belsaas.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
GUESTS: Heidi Pepper, Executive Director of the Economic Development Partnership of
Wright County.
Brenda Naffziger, President of the Monticello Area Chamber of Commerce.
Call to Order.
Chair Johnson called the IDC meeting to order at 7:00 a.m.
2. Introduction and welcome of ug_ests.
Koropchak introduced the above listed guests and IDC members introduced themselves.
Consideration to approve the June 17 and July 15. 1999 IDC minutes.
Bob Mosford made a motion to approve the June 17 and July 15, 1999 IDC minutes.
Tom Lindquist seconded the motion and with no additions or corrections, the minutes
were approved as written.
4. Consideration of Updates:
a) Mayor's report -none.
b) Koropchak's prospect and BRE report -See Attachment A.
Consideration of follow-up discussion relating to the July meeting held between the
Monticello Commerce Center property owner/broker and the IDC.
At the IDC meeting in July, the IDC was informed the 27.50 acres of industrial land lying
north of Chelsea Road (freeway exposure) was no longer on-the-market. This leaves 66.9
acres to the south of Chelsea Road and 30 acres off School Blvd. Both parcels are
privately owned by Weinard and Emmerich, respectively.
•
IDC Minutes - 8/19/99
i ion of the ro ert owner/broker one IDC
With no competition and taking the post p p y ,
member understood the "wait for more value approach" or "why did we sell so cheap
approach" of the developer. Another IDC member looked at both sides, the wait and see
approach of the developer and the tax base and job and wage objectives of the IDC/City.
Concluding the developer's approach leaves the City with a limited market plan.
Wolfsteller informed members that he and Koropchak had met with the Goeman group.
Their asking price $1.12 million for 95 acres compared to the highest appraisal of
$500,000. A second meeting was held with Chadwick based on discussion to swap
Chadwick's 85 acres for the City's (Remmele) 65 acres. For further discussions to occur,
estimates for construction of infrastructure improvements have been requested from the
city engineer. Given the current industrial zoning of the Gold Nugget property, members
suggested seeking estimated development costs for that parcel and to contact Novak
(owner) of their intent or interest to sell. Wolfsteller thought Novak had acquired the
property from Weinard for $8,000 per acre. Land for housing development at a higher
price than land for industrial development.
IDC members asked "what about Twin City Die Casting?" Although Pfeffer offered to
sell Twin City Die Casting six acres of land lying directly east of Fay-Mar for $2.00 per
square foot, this was not economically feasible. Currently, they are proceeding to look at
• Monticello, Big Lake, and Buffalo. Koropchak believes the ability to develop a trust
between a city and a developer is a strong point in the recruitment/marketing process.
Although disappointed, Koropchak believes Twin City Die Casting will select Monticello
as NSP services only the industrial park of Monticello and not Big Lake or Buffalo.
NSP's Economic Development Department -Downtown has been a supplement supporter
of this project.
6. Continuation of an update on the Council action to actively purse acquisition of the
Chadwick/Goeman properties.
One IDC member expressed the City should move forward and carry through with plans
to acquire land for future industrial development.
IDC members agreed they could support industrial development at either site selection.
Don Smith made a motion stating the IDC continues to support the Council's active
pursuance of industrial zoned property including the Goeman/Chadwick properties and/or
other potential sites. The motion was seconded by Dick Van Allen and with no further
discussion, the motion passed unanimously. This without an explanation of an inventory
of land or the limited potential to market.
2
IDC Minutes - 8/19/99
7. Consideration of an update and to discuss guest speaker options for the Industrial Banauet
in October 1999.
Not hearing from the Governor's Office, the IDC understood the demand for Governor
Ventura's appearance not only for Monticello but nationally. The IDC gave Brenda
Naffziger and Koropchak the go ahead to proceed with soliciting a guest speaker for the
banquet. Candidates: References from Marianna Khauv and Bill Fair.
8. Continuation to discuss need to increase the membership of the IDC and direction
thereafter.
With the intent to perhaps add a couple of new members to the IDC, the members
requested the item be placed earlier on the IDC agenda. Members suggested development
of a list of current membership by occupation and potential candidates by occupation.
The need and benefit for a school representative and NSP representative were mentioned.
Younger age group. Membership recruitment was set as a goal for the new year.
9. Other Business.
None.
10. Adjournment.
The IDC meeting adjourned at 8:30 a.m.
Ollie Koropchak, Recorder
•
• ATTACHMENT A
PROSPECTS AND BRE -AUGUST 19, 1999
Prospects -Twin City Die Casting -Jay Eller on vacation -returns August 16, company will make
site selection from a field of Monticello, Big Lake, and Buffalo. As a Monticello site, the most
interested site is 6-acres lying to the east and south of Chelsea Road. I did talk to Charlie after
the IDC meeting in July and the offer for the six acres of freeway property lying directly to the
east of Fay-Mar to Twin City Die Casting, only, was $2.00 per sq ft or $87,120 per acre. This
offer not economically feasible.
200,000-230,000 sq ft building -I've contacted the general contractor to inform the company the
20-acre freeway property was not on the market. The general contractor may take a wait and see
approach. Talking with Diba Sobhani, invited to see his current operation in Albertville on
Thursday, September 9, 8:00 a.m. No IDC volunteers.
Winkelman Builders -Provided office with a sketch of a 9,900 sq ft office/light industrial print
building for construction/lease on lot next to Fingerhut.
BRE - Aroplax Corporation plans fora 14,000 sq ft addition, 10 additional employees. Applying
for an EDA loan. In Business Spotlight. Two weeks waiting for return call from Building
Department. Company understands high demand with development, doesn't understand return of
telephone calls.
• Tire Service Equipment Co. - 12,000 sq ft expansion. After fiustration with no return telephone
calls from the Building Department, the situation appears to be resolved. Contractors back-
logged. Not interested in appearing in the City's Business Spotlight this quarter.
Midwest Graphics -The HRA amended the Private Redevelopment Contract replacing the
$181,000 pay-as-you-go-assistance with $181,000 of up-front assistance. The benefit to
Monticello is the addition of 40 new jobs, over and above the origina137, at a average wage of
$21.57 per hour excluding benefits. The benefit to Midwest Graphics is an aggressive utilization
of their new facility. The production jobs will come from their Plymouth office, their other
options were to stay put or move jobs to Egan. Move planned for this fall.
Remmele Engineering - In property tax court, appealing property taxes.
Lake Tool and Custom Canopy - No property taxes collected on these two TIF Districts for lg`
half year of 1999.
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U
• Page 2 Attachment A
75 acres - No expansion for 2 or 3 years.
100+ acres -Still in running.
Manufacturer of Refrigeration Systems - No company action.
60 marketing brochures mailed. We were behind.
•
•
•
VOTING MEMBERS
TERM
December 1999
December 2000
December 2001
Standing Member
NON-VOTING MEMBERS
City Council Liaison
Executive Director
Support Staff
Education
Service, Electrical Utility
Service, Health Care
Commercial
Service, Developer
Service, Contractor
Service, Real Estate
•
IDC MEMBERSHIP
1999
MEMBERS
Ken Maus
Bob Mosford
Bill Tapper
Kevin Doty
Sheldon Johnson, Chair
Dick Van Allen
Don Smith
Tom Lindquist
Tom Ollig, Vice Chair
Marianna Khauv
Roger Belsaas
Ollie Koropchak
Rick Wolfsteller
Jeff O'Neill
Fred Patch
SUGGESTED OCCUPATIONS
OCCUPATION
Retail, Grocer
Service, CPA
Industrial, Manufacturer
Service, Lender
Citizen, City
Industrial, Manufacturer
Service, Publisher
Service, Lender
Service, Utility
Chamber Chairperson
Mayor
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