IDC Minutes 09-16-1993MINUTES
• MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, September 1fi, 1993 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chairperson Jorin McVay, Kevin Doty, Ron
Hoglund, Shelley Johnson, Lowell Schrupp,
Dennis Taylor, Arve Grimsmo, Harvey Kendall,
Linda Mielke, Steven Lemme, Mary Micke,
Merrilyn Seefeldt, Ken Maus, Dr. Glenn Nemec,
and Say Morrell.
MEMBERS ABSENT: Don Smith, Dave Peterson, Tom Lindquist, and
Cyndie Johnson.
STAFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:00 a.m.
2. CONSIDERATION TO APPROVE THE AUGUST 19, 1993 IDC MINUTES.
The IDC waived the approval of the August 19 minutes.
• 3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
Treasurer Hoglund reported beginning monthly balances at
Marquette Bank of $4,096.24 and Metropolitan Federal of
$1,249.26. After payment of monthly bills, the combined net
balance is $5,305.46. .Linda Mielke made a motion to accept
the September IDC financial report as given. Mary Micke
seconded the motion and with no corrections or additions, the
financial report was accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Standard Iron and Wire Works, Inc. - The Ground Breaking
Reception is tentatively scheduled for Friday, October 1,
at 4:15 p,m. The real estate portion of the financing is
scheduled to close on September 28. Shingobee, Inc. was
awarded the construction bid. On September 14, Koropckiak
attended the Wright County Commission meeting. The
County Board accepted serving as the governmental unit
applicant far the State's Economic Recovery Grant to
assist the Standard Iron project. If the application
receives State approval, the first $100,000 principal and
interest payback of the $250,000 equipment loan will be
the first dollars for the County's proposed Economic
Development Partnership. The $250,000 is just one of the
• sources of funding far the $450,000 Horizontal Machine
Center with other funding from the CMIF, GMEF, and
IDC MINUTES
. SEPTEMBER 16, 1993
equity. A copy of Mr. Simensen and Koropchak's letter
were enclosed with the agenda. An additional $805,000 of
equipment will be financed through equity and a second
bank and SBA loan. Koropchak will notify IDC members of
the reception by mail. The IDC suggested Commissioner
Sawatzke be invited to observe an IDC meeting.
b) Custom molder of industrial and medical products -
Koropchak reported that John McVay, Ron Hoglund, Harvey
Kendall, and herself visited Polycast on August 31. The
Prospect Committee reported that the growing company
could improve its internal housekeeping; however, the
outside appeared well-kept. The company has received an
aggressive financial package from the City of Annandale
and hinted for additional funding from Monticello.
Monticello will not increase its original assistance
which was $55,000 of TIF and no GMEF.
c) Pampered Pets Cuisine - Koropchak reported that Mr.
O'Neill had met initially with Mr. Joe Dahmer in July.
The start-up business needs an approximate 15,000 sq ft
facility to bake, market, and package the all-natural pet
(dog) cookies. The projected ten employees would have a
wage range of $9.60 to $20.00 per hour. Nancy Volin,
President, owns 519b of the company stack and Mr. Dahmer
• is general manager. Site selection is 2 acres to the
north of the Little Mountain Elementary School along
Fallon Avenue. On September 8, Mr. Kirscht, BDS, Inc.
and Koropchak met with Ms. Volin and Mr. Dahmer to
discuss potential funding sources for the approximate
$1,200,000 project. Koropchak provided samples of the
packaged cookies to IDC members, stating the product is
currently in Byerly Stores, as well as, in California and
New York stores. The product consistently wins the "dog
eating" contests; however, to be cost-competitive the
company must reduce its baking and packaging costs. Mr.
Dahmer expects a fall construction.
d) Fluidyne, Inc. - Koropchak reported she has been unable
to reach Mr. Frame, the technical service business
president, since his request for a call back after Labor
Day Weekend. Chairperson McVay gave additional company
background information and said their current location is
in the area of Highway 55 and I-494.
e) Irresistible Ink - Although Mr. Petters found Dr. Brion's
building to meet his needs his immediate plans to proceed
have been postponed until after the first of the year.
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IDC MINUTES
• SEPTEMBER 16, 1993
BRE UPDATES:
a) H-Window Company - The HRA approved the use of TIF
District No. 1-7 surplus funds to assist the H-Window
with a cummulative present net value of $160, 000 far site
improvements. Execution of the Private Redevelopment
Contract and modification of the district budget are
scheduled for September 27. Mr. Lemme reported the
company is seeking real estate financing and anticipates
bank approval within the next couple of weeks. If
unsuccessful, the construction project will receive funds
from Norway. Winkelman Builders was awarded the
construction bid. Knut Flakk and his family have moved
into their Eden Prairie home this past week and
anticipate living in the US far two to three years.
b) Sunny Fresh Foods - The City's Attorney is researching
the potential to lease the 5th Street right-a-way to
Sunny Fresh for parking. Two components are necessary:
Agreed upon lease terms and confirmation from Burlington
Northern of lease approval.
c) Electro Industries - Merrilyn Seefeldt reported Electro
is marketing a new product, an electric fireplace, which
is doing very well,
5. CONSIDERATION TO DISTRIBUTE IDC BAN(~UET TICKETS AND OTHER
DISCUSSION RELATING THERETO.
Koropchak distributed banquet tickets to members and stated
the only change to the list was a match between the industrial
business and the IDC representative. Ticket prices remain the
same as the cost of food didn't increase. As Banquet
Committee members, Harvey Kendall and Linda Mielke agreed to
be greeters. Shelly Johnson reported Dr. Bensen, brother of
Principal Kermit Bensen, was a dynamic speaker on state of the
art technology. It was suggested that the honorarium be
enclosed in a thank you note.
6. CONSIDERATION OF PROJECT UPDATES:
a) Star City Conference "On the Cutting Edge" - Enclosed
with the agenda was a copy of the conference agenda.
Koropchak encouraged any IDC member interested in
attending to call her office. The conference is
September 22-24 at the Radissen Hotel Minnetonka.
b) Central Minnesota initiative Fund Report - Kevin Doty
summarized the June 29 meeting as an agenda with an axe-
to-grind. The seemingly social club did not project a
"good for overall" theme but supported smaller projects
in the northern counties and cut backs for larger
projects.
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IDC MINUTES
• SEPTEMBER 16, 1993
c) LDI, Inc., Becker, MN - Chairperson McVay reported that
LDI, Inc., much like Waldorf, Inc., would start
construction this fall with an operational date of
Jan~zary 1995. They will employ 100 people at wages
between $16.00 to $19.00. NSP and the State of Minnesota
worked together to prevent this Minneapolis family-owned
business from moving out-of-state. NSP provided 30 acres
of the 4,500 Sherco acres for project construction. The
company will pay standard electrical rates and receives
no assistance for development of water/sewer or ponding.
7. OTHER BUSINESS.
a) Chamber President Mary Micke reminded members of the
Chamber meeting this noon at the Legion. Programs are
the Connect 4 Community Service and United Way.
b) The IDC members briefly discussed the availability of
industrial land within the City. If the City owned land
such as the Hoglund property, would it present a conflict
of interest or if privately owned, could the community be
held hostage?
8. ADJOURNMENT.
• Harvey Kendall made a motion to adjourn the IDC meeting,
seconded by Ron Hoglund, the meeting adjourned at 8:25 a.m.
~~ ~~~
Ollie Koropchak, ID xecutive Director
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