IDC Minutes 08-20-1998•
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, August 20, 1998 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Vice Chair Tom Lindquist, Shelly Johnson, Don Smith, and Ken
Maus.
MEMBERS ABSENT: Chair Dick Van Allen, Secretary Tom Ollig, Kevin Doty, Bill
Tapper, Bob Mosford, and Bob Grabinski.
COUNCIL LIAISON PRESENT: Mayor Bill Fair.
STAFF PRESENT: Fred Patch and Ollie Koropchak.
Call to order.
Vice Chair Tom Lindquist called the IDC meeting to order at '7:00 a.m.
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2. Consideration to approve the July 161998 IDC minutes
Due to a lack of quorum, the minutes were not considered for approval.
Consideration of Activity Reports.
a) Mayor's report -Mayor Fair reported on the Ground Breaking Reception for Allied
Companies, the tour and promotion for a restaurant (Blackwood's), and stated he would
respond to the letter from Standard Iron requesting a letter of endorsement for a MN Job
Skills Partnership Grant.
b) Industrial Banquet - In the absence of Grabinski, Koropchak noted that Dr. George
Karvel, St. Thomas University, was confirmed as the guest speaker. Smith encouraged
IDC members to promote the tickets as there was a drop in attendance last year. It was
suggested the upper-level bar be open to encourage those in attendance to view the
industrial booths or displays.
c) Ground Breaking Reception -Koropchak alerted members that a reception for Blue
Chip Development Company and B and B Metal Stampings construction project would be
scheduled perhaps the week of September 7th. The project is on a tight construction
schedule for occupancy by the tenant in December. Invitations will be mailed.
d) Marketing Subcommittee -Smith reported a request for proposal was prepared and
mailed to four marketing firms. Three firms, two local and one metro, submitted
proposals. Koropchak indicated the interview team of Jeff O'Neill, Wanda Kraemer, Brad
Barger, and Koropchak will interview Design for Print, Majirs Advertising and Design,
and Lecy Design tomorrow a.m. The fourth firm, Rapid Graphics, could not fit the
aggressive Monticello time line of October 26 into their schedule.
IDC MINUTES
AUGUST 20, 1998
e) Prospects -Koropchak reported she had visited Tru Therm Aluminum in Plymouth.
The company is a fabricator of related aluminum construction products providing service
in cutting, machining, drilling, welding and assembly. The company prefers an existing
building of 16,000 to 20,000 sq ft with two docks and one drive-into lease or purchase.
Current number of jobs is 12, projected to add another 10 in two years. Average wage
$14.00 ph. Decision May 1999. Key decision criteria: competitive work force and
transportation routes. Lead from Tom St. Hilaire. Cool reception -felt Monticello was
on the outer edge for transportation needs. Follow-up October 1, 1998.
FasTechnolo igies, creates industrial software for circuit board industries. Annual salary of
$45,000 for programer. Employs 6, most live in Maple Grove. Looking for property to
construct 2,500 sq ft facility. Identified properties for sale.
4. Consideration to hear and endorse Standard Iron's proposal to MN Job Skills Partnership
Grant.
Koropchak submitted a copy of the letter from Standard Iron noting they are in the
process of developing a proposal to the Minnesota Jobs Skills Partnership Grant program.
The proposal is a response to the company's need to provide training to increase the skill
levels of their employees. They request a letter of support for the proposal and extended
an invitation to a open house. Mayor Fair and Koropchak plan to submit a letter of
support and Koropchak suggested perhaps the IDC Chair would prepare and submit a
letter from the IDC as this fits the IDC goal of business retention and expansion. The
consensus of the IDC members present was to request Chair Van Allen prepare and
submit a letter of support on behalf of the IDC to Standard Iron for grant application to
the MN Job Skills Partnership.
5. Consideration to review the comparative city fee study for C/I development and approved
h n s.
Fred Patch, Chief Building Official, informed IDC members the process for developing the
comparison study of 12 cities began in 1997. The study is for residential and - '
commerciaVindustrial development. Members received a copy of Exhibit A, B, and C and
Patch reviewed Exhibit C, C/I study, with the committee. Patch noted the Council
adopted the 1994 Uniform Building Code Fee Schedule, increased Park Dedication Fees
for residential development only, and increased utility connection permit fees at the
August 8, 1998 meeting. Previously, Council had increased the SAC charges for the next
two years: $2,500 per unit effective January 1999 and $3,000 per unit effective January
2000. Using an example of a 100,000 sq ft office/warehouse, Monticello construction
permit and utility connection fees appeared very attractive. The Monticello utility access
fee appeared higher than the norm; however, Patch noted some cities charge a higher
• utility rate to subsidize the cost of new development. Monticello's trunk utility
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IDC NIlNUTES
AUGUST 20, 1998
assessment policy for C/I allows the fee, based on developed area, to be assessed over
time. Koropchak encourages the HRA or City to apply the estimated WAC/SAC access
fee toward the TIF Local Contribution thereby preventing the City's HACA Penalty and
reducing the company's up-front cash out-lay at a time critical to businesses. Monticello
rated ten, out of the study of twelve city. IDC member noted when the assessable trunk
utility fees are subtracted, Monticello's C/I development costs appear in line at $62,000.
Members thanked Patch for the report.
6. Other Business:
Smith submitted a newspaper article relating to PIWCS move into the previous Monticello
Marquette Bank Building, noting the increased economic impact to the city.
Mayor Fair noted the absence of Charlie Pfeffer in our community and suggested
encouraging his involvement as he is the city's major industrial land consultant. Vice
Chair Lindquist requested placing this on the newt ID~ agenda.
7. Adjournment.
The IDC meeting adjourned at 8:15 a.m.
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Ollie Koropchak, Economic Development ~.lir~g~p~