IDC Agenda 07-17-1997• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, July 17,1997 - 7:00 a.m.
City Hall
MEMBERS: Chair Ken Maus, Vice Chair Tom Lindquist, Secretary Tom Ollig, Shelly Johson,
Jay Morrell, Don Smith, Kevin Doty, Bill Tapper, Dick Van Allen, and Grace
Pederson.
COUNCIL LIAISON: Mayor Bill Fair
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
GUESTS: Bill Fahrney, Shingobee, Inc.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 19, 1997 IDC MINUTES.
3. ACKNOWLEDGMENT OF GUEST.
4. CONSIDERATION ON A SUBCOMMITTEE UPDATE RELATING TO THE
• PROPOSED WORKSHOP BETWEEN THE CITY COUNCIL, STAFF, AND IDC.
5. CONSIDERATION OF AN UPDATE ON BUSINESS EXPANSION AND PROSPECT
PROJECTS. (ALSO STORM DAMAGE)
6. CONSIDERATION TO CONFIRM THE DATE AND SPEAKER OF THE IDC
FUNDRAISER BANQUET.
7. OTHER BUSINESS.
8. ADJOURNMENT.
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. 35 companies have brought 1,400 jobs..
director for Anoka.
By Jennifer Ehrlich In terms of city revenues, the new busi-
Staff reporcer
The machinists at Wilted a the C hstal overa11h10 percentedorh $2 mllionb The
been packed in like sardines rY
shop for too long,. and Al Olsen, the comtplaie about one third of Anoka's tax brief ai'e taxi
ny's president, said they're welcoming
move to the new building. the company is exempt organizations, Kirchner said.
building in Anoka. ; ~ "It was efficient development and will
A key factor in Wiltec's decision to relo- pay back in the short term for us -for the
cate to Anoka in particulaz is the city's pow- companies the land Pafor thep fmancing,e
erful incentives package that has made the land acts as equity .
city a formidable competitor in the metro- ~ I Au sand 1994, Lund Industries Inc. was
area battle. to recruit or hold .onto industrial the first.to bbreak ground under Anoka's new
businesses ,;
What Anoka has to offer is free land. In incentives, building its 228,000-square-foot
1994, the city decided it needed to expand headOge~~e tnext two yeazs, First Team
its tax base and create more jobs, and it start- ~ Inc. built a 200,000-squaze-foot plant
ed buying'up land and offering it free of Spo
chazge to companies that fit within its devel- Wtec Industrie mall~rh c~ a ploys 25 peon
gpment parameters. , . le - filled u the industrial park in 10,000-
"It's that money up front that makes it a p P
000-square-foot pazcels of land.
•little more attractive than other incentives," to In terms of the impact of the commuters
said Olsen. `"I'ax reduction over 15 yeazs,
that's nice too, but the land kind of pushed , p ob~n P sP~ a° i ~many~ another lboorning
us over the hump.
Since then the strategy. has paid off for suburbs dealing with affordable housing and
the city. As of three years ago, Anoka was sch~ hner said Anoka's public schools aze
home base to only eight industrial compa-
nies. The land deal has drawn 35 more com- addin oW~ul~ass sizes 1SAc-d in tern-~s of
parries that have built 1.6 million square the gr g
feet, and brought in 1,400 jobs, according to housing, about 300 single-family homes and
Robert Kirchner, community development townhouses are under construction. ^
Jewelry division increased 5 to 10 percent.
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'03/97
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18:57 To:Ollie Koropchak
From: Jean Cannefax
U V E L O P T S
Page 1/1
~NNLSUI'
~^ZYade & -
l.:l~.On01~C Jul 3, 1997
Development y
Foley Lands Lehmann Farms Plant Slated
First for ~seonsin
A groundbreaking was held June 17 in Foley,
Minnesota, the county seat of Benton County, to
announce the new location for Lehmann Farms, a
specialty food processing, packaging and distribution
company.
Lehmann produces many items that are on the shelves
of Minnesota stores and around the country.
Currently housed in an old Tonka Toys Building
~hich the city is planning to raze, the company was
courted by New Riohmond, Wisoonsin, whioh offered
various attractive incentives.
To counteract the potential loss of this viable business,
Jay Novak, Commissioner of the Minnesota
Department of Trade and Economic Development,
acted to fmd a suitable new city site and financial
incentive package to keep Lehmann as an enterprise in
the state.
Novak and DTED business staff quickly processed a
Minnesota Investment Fund application for the City of
Foley, which was extremely interested in bringing the
company to its community in central Minnesota.
Lehmann spokesperson and CFO Dick Dorale and
DTED Business Development and Finance Director
Mark Lofthus indicated that, early on, there was only a
"five percent chance" that the company would remain
in the state. Following DTED's aggressive strategy to
retain the firm, however, this likelihood turned around
markedly in Minnesota's favor.
r 1
The total assistance of $1,225,000 from local, state,
Industrial Revenue bonds and private sources will
allow Lehmann to finance a new building, new
equipment and machinery in the move to Foley.
"The City of Foley and DTED staff were very
aggressive and positive," explained Lofthus. "We also
added the creative, human element to the equation that
helped to convince Lehmann to stay and expand in
Minnesota.
" Steve Sussman and Carol Pressley-Olson did an
outstanding job in putting together the effort on behalf
of the state," he added.
"We were delighted to see that Lehmann chose Foley
after ail exhaustive searoh prooess that oame down to
the City of Foley versus another out-of--state location,"
said Commissioner Novak. "In the end, it was the
effectiveness of local officials ui putting together a
financial package that was acceptable to all parties, as
well as the firm's satisfaction that a sizeable,
productive labor force exists in the Foley area."
"Tell Us About Your Posrtive Developments"
"Positive Developments" is an occasional newsletter
faxed to people interested in Minnesota's economic
development. It highlights many of the exciting, new
projects that are croating jobs, investment and an
improved tax base in the state. If you have such a
project you would like to see receive statewide attention,
send it to us for distribution through the network. Call,
write or fax to: Mark Lofthus, DTED Office of Business
Development and Finance, at 612/297-4567, 1-500-657-
3858 or Fax 612/296-5287. Address: 500 Metro Square,
121 7th Place East, St. Paul, MN 55101-2146.
~~~