IDC Agenda 07-16-1998AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, July 16, 1998 - 7:00 a.m.
City Hall
MEMBERS: Chair Dick Van Allen, Vice Chair Tom Lindquist, Secretary Tom Ollig, Don
Smith, Shelly Johnson, Ken Maus, Kevin Doty, Bill Tapper, Bob Mosford, and
Bob Grabinski.
CITY LIAISON: Mayor Bill Fair.
STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 18, 1998 IDC MINUTES.
3. CONSIDERATION OF ACTIVITY REPORTS:
a) 3M Visit -Mayor Fair/Ollie
b) Prospects -Ollie
c) Industrial Banquet -Tuesday, October 27. Suggested speakers: Paul Douglas,
Dick Youngblood, or Dr. George Karvel -Bob Grabinski.
• d) Status of SW Corridor Utility Feasibility Study -Mayor Fair
4. CONSIDERATION TO REVIEW SCHEDULE AND PLAN FOR DEVELOPMENT
AND MAINTENANCE OF INDUSTRIAL MARKETING PLAN. Don Smith.
a) Hire firm for concept and design.
5. OTHER BUSINESS.
a) Next IDC meeting August 20, 1998.
6. ADJOURNMENT.
Monticello Industrial Development Committee
• Minutes from June 18, 1998 meeting
Members Present: Dick Van Allen, Tom Lindquist, Tom Ollig, Don Smith, Kevin Doty,
Bill Tapper, Bob Grabinski. City Staff, Ollig Koropchak.
Members Absent: Shelly Johnson, Ken Maus, Bob Mosford.
1. Meeting was called to order by chariman Van Allen.
2. Motioned by Smith seconded by Grabinski to approve the Apri121d minutes. Motion
approved.
3. Don Smith handed out and gave a short review of the Marketing Plan that a
sub-committee of the IDC is working on. After some discussion it was motioned by
Smith seconded by Lindquist to adopt the marketing concept draft presented to the
IDC from the sub-committee. Motion approved.
After further discussion it was motioned by Smith seconded by Tapper to have the
IDC sub-committee review implementation and budgeting for the marketing plan.
Motion approved.
Van Allen motioned Tapper seconded that the City needs to devote 20 hours per
week of staff time to implement and carry out the marketing plan. Motion approved.
4. The original draft of the marketing plan was presented to the Monticello HRA. At
their meeting they approved the draft and recommended that the City look outside
of City staff for the development of the marketing brochure.
5. Ollie talked about the success of the HRA/Site Locater Tour. Some 30 people were
on the tour and 27 played golf at the Chamber outing. Ollie felt the tour was a
success.
6. Ollie reviewed her prospects list.
Midwest Graphics is to do a ground breaking for their new addition soon. A
possible IDC reception was talked about after the ground breaking however no
action was taken. The TIF meeting with the contractors has been completed.
B&B Metal Stamping is going to Albertville.
Reviewing a lead from the Department of Trade and Economic Development.
7. Bob Grabinski talked about the various events that the Chamber has going on such
as Art in the Park, Riverfest, Crazy Days, Industrial visits in conjunction with Rogers
and the School to Work Program.
Motioned by Smith, seconded by Ollig to adjourn. Motion approved.
MINNESOTA NIlNING & MANUFACTURING
• June 26, 1998
Mark Beattie, Manager, Real Estate Department
"A community with a vision for the future"
SITE DEVELOPMENT
1. SPEED -Protects business market share and delivery of product.
(A business has defined its market)
2. PROTECTED ZONING -Industrial (no residential)
a) Community owned
b) Improved or ability to deliver.
(Business willing to pay if assured it can be up and ready)
c) Developed partnership with builders. Built to suite to lease
Less than six months.
3. SIZE AND FLEXIBILITY MOST IlVIPORTANT.
a) 3M not less than 200-acre site. 200 to 500 acres.
b) 130,000 to 800,000 sq ft -Industrial campus with supplies around.
• c)
d) 1 % land needed for buffer.
Can sub-divide in future.
e) Environmental issues.
Necessary infrastructure.
What's going to be around you. Need for 500 acres.
Two major company anchors - 1,000 acres.
Transportation.
Vibration.
Flow of winds.
Selective -quality and way company operates.
3M -perhaps new sites in future. (Colorado high tech and Arkansas light industrial)
1. SITE SELECTION.
I-94.
Traffic flow for suppliers and customer distribution.
Interechange
Trucking noise and signaling.
Impact around them.
2. QUALITY OF LIFE.
a) High percentage of technicaUprofessional employment.
b) Ability of employment for spouse. Also professional.
(Provide retention of employment)
c) Education - % of high school graduates going on to college/university.
80% or better for consideration.
Accessibility of colleges and university for continued training and spouse's
education.
BUSINESS CLIMATE.
a) Incentives through legislation.
b) Lobby for interchanage/ highway, etc.
c) Vision for residential development.
d) Management of your City.
4. WORKFORCE.
a) Availability of education.
b) Quality workers
c) Cost (wages)
•
•
3M Site Selection Methodology Overview
The process utilized at 3M for site selection of new facilities generally takes three steps:
• The first step addresses the anticipated business need, provides definition of the search objectives
and outlines the projected time the new facility will be needed by the specific business Division or
Group. This information is compiled by the requesting Divison/Group Manufacturing
management and shared with other 3M internal manufacturing and corporate management to
clearly communicate and define the need.
The second step is to compare the need with existing 3M operations (existing manufacturing
plant suitability) to better determine possible opportunities to consolidate or expand existing
operations to accommodate requirement, where possible. If it is determined existing 3M
manufacturing sites are not suitable for this requirement, a review of all 3M surplus sites, i.e.,
"brown field" (sites projected for disposal or actively being marketed for sale) and "green field"
generic land banked sites (sites currently held by the corporation for future manufacturing use) is
conducted.
The third step (if necessary) is to conduct a search for a new site. This process is managed by an
internal 3M site selection committee consisting of representatives from the Division/Group
Manufacturing team having the need, Upper Management, Real Estate, Tax, Finance, Human
Resources, Logistics, Environmental Technology & Safety and those corporate committees
involved with global quality and manufacturing utilization. The team may also be supplemented
by the selection of consultants in the prescreening of communities and the final site evaluation,
selection and acquisition.
Throughout this three step process, 3M employs a site selection criteria to evaluate those
communities and sites we currently have operations in as well as any future US or Global regions,
communities and sites under consideration. The critical criteria to be considered are as follows:
1. Suppty Chain: Provide the desired total delivered cost and cycle time for products produced at a site.
The key elements/considerations being proper alignment of distribution network between suppliers,
manufacturing site(s) and 3M customer(s)/distributors.
2. Quality Of Lrfe: Those regions/communities which provide a high quality of life for our employees
and their families, e.g., factors such as: housing, low crime, education, cultural and spouse
employment opportunities.
3. Business Climate: Those regions/communities which are pro-business, e.g., right-to-work, low
taxes, incentive programs, etc., and can advance 3M's strategic business interests.
4. Quality Of Workforce: Availability, quality and cost of workforce.
5. Safety, Health and Environmental: Regions and communities that provide environmental
regulations that support 3M business operations and align with 3M's operating policies and initiatives
regarding Safety, Health and Environmental matters.
6. Infrastructure: Those regions, communities and specific sites which best support a specific 3M
business need, e.g., zoning, site size, roadways, utilities, airports, etc.
7. Growth Potential: Those regions, communities and specific sites which can accommodate
anticipated growth needs of a specific 3M business, e.g., land, infrastructure, workforce, etc.
8. Risk: Assess the financial and operational risks associated with site (existing vs. new) options.
SCHEDULE AND PLAN FOR DEVELOPMENT AND MAINTENANCE OF A
CITY OF MONTICELLO INDUSTRIAL MARKETING PLAN
• July 1998
GOAL: To unveil the industrial brochure and prospect list at IDC Banquet on October 27,
1998. Items I and II.
I. Development or update of an industrial brochure.
Content: Business climate (speed, zoning, and flexibility)
Available sites -size and contact person.
Infrastructure
Transportation/Location
Utilities
Labor Force
Financial Assistance
Maps
A. Gather and update information.
1. Maps and data
Who? HRA/IDC/staff
Time: 10 hours.
B. Hire for development of concept and design of brochure. Cost?
Who writes? Firm.
1. Quantity and type (small or large, with or without inserts)
Time - 3 months (Hire to production)
• Time: 8 hours
C. Review and maintain brochure data.
Who? Ollie
Time: Every six months 2 hours. 4 hours
II. Define target market for development of prospect list.
A. Define specific SIC
Who? Small group -Brad, Dick, Tom, Don, Damn, and Ollie
Time: 2 hours.
B. Acquire list by identified SIC
Who? Ollie, DTED, MTI, etc.
Time : 4 hours
C. Filter list by location (NW corridor).
Who?
Time: 4 hours.
D. Filter list by size.
Determine appropriate measure i.e. number of employee, wages, tax value etc.
Who? Small group
Time: 4 hours.
E. Develop a list of existing industry referrals i.e. supplies, service, etc.
1. Via survey developed by Ollie
• Time:
2. Survey implementation by IDC 4 hours
Time: 2 weeks. 80 hours
•
III. Implementation of targeted marketing plan (pro-active).
A. Mail 10 brochures per month. ($30 per month) $360
1. Who stuff and mail? Staff
B. Develop personalized introductory letter from Mayor.
1. Who? Ollie
C. Follow-up call in one week.
Who? Ollie
Time: 14 hours per month 168 hours
D. Follow-up prospect team appointment. $50 per event
Who? Team: Mayor, Administrator, Ollie, HRA and IDC representative.
When appropriate, financial consultant.
E. Optional: Host community visit/tour. $100 per event
Time: 4 hours per appointment.
IV. Response to industrial inquiries (re-active). $50 per event
Who? Ollie
A. Set up appointment.
B. Contact Prospect Team
C. Site visit and bring market pieces
D. Optional: Host community visit/tour. $100 per event
Time: 4 hours per appointment.
OR
A. Mail brochure/introduction letter.
B. Follow-up within one week -set appointment.
C. Contact Prospect Team. $50 per event
D. Site visit and bring market pieces.
E. Optional: Host community visit/tour. $100 per event
Time: 4 hours per appointment.
V. Development of an industrial web site. $7,000
1. Ollie currently developing with city framework, much data gathered via marketing
exercise
Estimated Time: August 1, 1998
2. Maintain/update.
Who?
Time:
VI. Develop a-mail capabilities for use.
1. Ollie currently developing with city framework.
Estimated time: July 15, 1998
VII. Develop Public Relations Campaign.
A. Press releases.
1. Photos -Wanda
2. Write articles -Intimate Party
3. Identify distribution list
4. Distribute -Wanda
40 hours per
year.
•
Time: 2 hours per month. ? 24 hours
B. City Newsletter.
1. Photos -Wanda
2. Write articles -Ollie
3. Assemble -Wanda and Karen.
4. Distribute -staff.
Time: 2 hours per month. ? 24 hours
C. IDC Banquet.
1. Coordinate event - Chamber/IDC -Kitty/Ollie
2. Ticket sales -IDC members
3. Speaker selection -IDC members
Time: 16 hours
Event: 4 hours
D. Annual City Event (Bus tour, golf, etc.) $2,000
1. Coordinate event -Ollie
Time: 10 hours.
Event: 8 hours.
E. Industrial Ground-breaking Reception $50 per event
1. Coordinate -Ollie/staff
Time: 2 hours
Event: 2.5 hours
F. Industrial Open House Tour. $30 per event
1. Coordinate -Ollie/staff
Time: 2 hours
Event: 2.5 hours
G. Mayor/Ollie Industrial Visits
1. Coordinate -Ollie
Time: 20 per year = 50 hours per
year.
TOTALS Time: 475 hours Budget:
$10,500
VIII. Partici pation at Trade Show promoting industrial development (2 to 3 per year)
A. Design/create booth
B. Identify which trade shows
C. Develop plan for staffing booth
D. Identify and order freebies (mugs, etc) $1,000
Time: ?
Budget: ?
IX. Erect industrial sign along freeway.
A. Research cost and site
B. Determine length of time
C. Design sign
Time: ?
Budget ~
•
0,~~''~
• Public relations campaign,
Industrial development-City of Monticello --~-~''~_
Photos and news stories about industrial development will be processed by city hall
and mailed to:
Monticello Times
Minneapolis Star Tribune
St. Paul Pioneer Press
City Business
Twin Cities Business Monthly
Real Estate Journal
St. Cloud Times
Wright County Journal-Press, Buffalo
KRWC-Radio, Buffalo
WCCO-Radio-Minneapolis ~'
Minnesota Public Radio, St. Paul
5 Twin Cities TV stations-2, 4, 5, 9, 11
Letterhead will have city hall contact person (normally Ollie Koropchak)...plus name of
industrial manager/owner (if appropriate...and with approval).
• Types of stories:
• Business relocations
• Business expansions (existing firms)
• City IDC/HRA events-golf, breakfast, IDC banquet (speaker, etc.)
• New industrial plats/offerings
• Newsmakers within industrial community
• New financing program (or economic assistance)
(I believe 2 hours per month is an accurate time estimate)
r~
July 1, 1998
Mr. Mark A. Beattie
3M Facilities Engineering and Real Estate
Building 42-8E-06
PO Box 33331
St. Paul, MN 55133-3331
Dear Mark:
On behalf of Mayor Bill Fair and myself, I would like to thank you for taking time from your busy
schedule to meet with us and Bill Farney, Shingobee, Inc. on June 26. We appreciate your
• willingness to share with us, 3M's site selection methodology and criteria. The City of Monticello
is a community seeking to recruit new business and industry and recently, the city approved a land
use plan for development of the southwest comdor which includes industrial land use. Needless
to say, your insights, were of value and well-received.
Remember, the City of Monticello is not far away from St. Paul and in the future, the city would
welcome the opportunity to deliver an industrial site to accommodate a division of 3M. In the
meantime, if the occasion arises, please do not hesitate to pass on a good word about the City of
Monticello, Minnesota.
Mark, it was our pleasure to meet you and your name now appears on the list of invites for the
1999 Mayor's City Bus Tour and Golf Outing. Again, our appreciation and thanks.
CITY OF MONTICELLO, MINNESOTA
~ ~~
Ollie Koropchak
Economic Development Director
cc: Mayor Bill Fair
• Bill Farney, Shingobee, Inc.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 • (612) 295-2711 • Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (612) 295-3170 • Fax: (612) 271-3272
MONTICELLO
July 1, 1998
Mr. Bill Farney
Shingobee, Inc.
4150 2nd Street South, Suite 330
St. Cloud, MN 56301
Dear Bill:
On behalf of Mayor Bill Fair and myself, I would like to thank you for arranging the meeting with
Mark Beattie of 3M on June 26. We found Mark's willingness and comments regarding 3M's site
selection methodology and criteria to be of value.
We also hope a seed was planned for future development in the City of Monticello whether with
• 3M or another business. Thanks again for sharing the experience.
CITY OF MONTICELLO,IVIINNESOTA
Ollie Koropchak
Economic Development Director
cc: Mayor Bill Fair
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 • (612) 295-2711 • Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (612) 295-3170 • Fax: (612) 271-3272
MONTICELLO