IDC Minutes 07-21-1994MINUTES
• MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, July 21, 1994 - 7:30 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Shelly Johnson, Arve
Grimsmo, Don Smith, Harvey Kendall, Jay
Morrell, Ken Maus, Tom Lindquist, Dr. Glenn
Nemec, Cyndie Johnson, and Jim Fleming.
MEMBERS ABSENT: Vice Chairperson Kevin Doty, Treasurer Ron
Hoglund, Mayor Brad Fyle, Dennis Taylor,
Merrlyn Seefeldt, Steve Lemme, and Bill
Tapper.
STAFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUEST: Rotarian Jim Eastwood, Cookstown, Northern
Ireland.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:30 a.m.
• 2. CONSIDERATION TO APPROVE THE JUNE 16, 1994 IDC MINUTES.
Dr. Glenn Nemec made a motion to approve the June 16, 1994 IDC
minutes. The motion was seconded by Harvey Kendall and with
no additions or corrections, the minutes were approved as
written.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
In the absence of Treasurer Hoglund, Koropchak reported
monthly balances of $3,874.76 at Metropolitan Federal and of
$1,249.35 at Marquette Bank - Monticello for a total balance
of $5,124.11. Arve Grimsmo made a motion to accept the
monthly IDC financial report as given. Seconded by Dr. Glenn
Nemec and with no additions or corrections, the financial
report was accepted and filed.
4. WELCOME OF AND PRESENTATION BY ROTARIAN JIM EASTWOOD.
Chairperson McVay welcomed Mr. Eastwood to the IDC meeting and
asked Don Smith to introduce Jim Eastwood.
In his introduction, Mr. Smith informed members that Mr.
Eastwood ran two businesses in Cookstown, Northern Ireland.
One, a sheet metal business which employs 10-12 people. The
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company produces one product, a heating boiler, and its market
is the United Kingdom. Secondly, he's director of the
Cookstown Enterprise Center.
Mr. Eastwood states that the Cookstown Enterprise Center is
financed by the British Government and was developed to assist
new small businesses (1-50 employees.) Larger businesses
(over 50 employees) are assisted by the Industrial Development
Board and European Fund. Ireland's high unemployment rate,
15 o to 22~, is the result of a decline in the agriculture,
linen, and ship building industries as well as increased
automation.
The Enterprise Center is a hands-on support for startup
businesses. Support initiates from the point of an idea
through business plan preparation, operational training, etc.
and funding. Purpose is to create good businesses. Their
training is one of the best developed in Europe and more
favorable than any in the US or Monticello. These loans are
high-risk, non-returnable, and approval is based on knowledge
of business. Loan amounts run from 1,000 pounds to 25,000-
30,000 pounds.
Because of Ireland's geographic location, high unemployment
rate, available land, and readiness; they are able to obtain
large dollar amounts from the European Fund. Most recent, a
large Korean industry, has agreed to expand to Ireland and
will receive assistance in the neighborhood of 61 million
pounds for training, relocation of key personnel, education,
etc. Marketing consists of high-profile advertisement and
education.
The Enterprise Center tracking system indicates approximately
10~ of the creative ideas actually become a business and the
success rate of the 10~ is about 50~. It takes about 12-18
months for a business to mature. Failure is generally cash
related.
Asked about industrial competition between Cookstown, Belfast,
and Dungannon, Mr. Eastwood responded that the major
difference between Belfast and Cookstown is transportation.
Belfast is served by air and Cookstown by sea. Dungannon is
the greater competitor because Cookstown and Dungannon have
similar marketing strengths.
Mr. Eastwood foresees the potential for an exchange of
Cookstown-Monticello industrial expertise and joint-ventures.
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IDC MINUTES
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While in Monticello, he visited Bondhus Corporation, Suburban
Machine & Manufacturing, H-Window Company, and Sunny Fresh
Foods.
Chairperson McVay thanked Jim Eastwood and wished he and his
family a pleasant return trip to Northern Ireland.
5. CONSIDERATION OF PROSEPCT UPDATES:
The IDC accepted the written report.
Chairperson McVay inquired of the interest to visit the Morton
Builder's headquarter in St. Cloud regarding an expansion
location to Monticello. Jim Fleming volunteered to
participate. Ken Maus inquired to the status of Monticello's
ordinance regarding allowable construction of pole barns or
metal buildings and suggested this be resolved first.
Additionally, McVay inquired of the potential for Clow
Stamping to sell their Monticello real estate inorder to meet
the needs of some prospects. Koropchak responded that
previous inquiries indicated the ability to sell or to prepay
industrial revenue bonds was null.
• BRE UPDATES:
In addition to the written report, Koropchak informed members
that the $250,000 equipment grant to the City of Monticello
for a loan to the H-Window has not been awarded by the State.
The State request the award be funded by Federal dollars
rather than the proposed State dollars. Major difference is
the increased amount of accountability and documentation
required by both the H-Window and the City. However, the City
is able to retain the full $250,000 principal and interest
payback for its revolving loan fund.
Secondly, Ray Schmidt of the Tire Service Equipment Company
has contacted the City Building Official regarding procedures
necessary for expansion of their facility.
BRE REPORTS:
Shelley Johnson reported the Hoglund Bus Company has five
different businesses within its organization. The five
businesses are student transportation, commercial/coach,
ambulance, bus sales, and used-vehicle restoration. The
latter business, a new concept and going extremely-well,
allows part-time bus drivers to become full-time workers.
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IDC MINUTES
. JULY 21, 1994
They are short of space and employ 40-50 individuals, FT/PT.
Shelley volunteered to contact and report on D&D Bus Service.
Harvey Kendall reported on the NSP Nuclear Plant stating
things have quieted down. The refueling outage is scheduled
for September 15 to October 3. The plant relicense issue is
on-hold. Due to company reorganization, the Monticello plant
is downsizing its 300+ employment by not replacing individuals
and cutting consultants. Harvey reports the new company buzz
words are "repower and heat generation." No new sitings are
being sought and the company has not given up on the extenion
of nuclear power. In spite of other potential growth and
expansion, one concern of the IDC is the potential de-
valuation of property if the reactor was retired.
Don Smith reported Sunny Fresh Foods' latest addition, now
under-construction, was delayed by financing. An open house
is planned upon completion of the employee lounge, office, and
production area. Sunny Fresh continues to invest in
Monticello through expansion and upgrading. Additionally,
they continue to work with the City to improve traffic
circulation patterns.
• Next month reports by Ken Maus and Jay Morrell.
6. CONSIDERATION TO ACCEPT LETTER OF RESIGNATION FROM IDC MEMBER
DENNIS TAYLOR AND CONSIDERATION OF REPLACEMENT.
Dr. Glenn Nemec made a motion to accept the letter of
resignation from Dennis Taylor. Seconded by Jim Fleming and
with no further discussion, the motion passed unanimously.
Koropchak informed IDC members that Mr. Bob Mosford, a member
of the Economic Development Authority (EDA), expressed
interest in IDC membership. Jim Fleming endorsed Mr. Mosford
as a candidate. Consideration for a replacement was referred
to the Planning (Executive) Subcommittee to review the
existing list of candidates and to make a recommendation at
the next meeting. The committee can also elect not to fill
the position immediately.
7. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Legislative - No report.
b) BRE - Tom Lindquist requested IDC discussion and
consideration to accept $1,000 from Marquette Bank -
Monticello as a contribution for the banquet speaker's
fee . Thi s in exchange for ink on the banquet program and
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IDC MINUTES
• JULY 21, 1994
perhaps ticket. John McVay made a motion to accept the
$1,000 contribution from Marquette Bank - Monticello for
exchange of ink on the program and perhaps ticket. Ken
Maus seconded the motion and suggested keeping the
sponsorship low-keyed. With no further discussion, the
motion passed unanimously.
c) Infrastructure - At the August 18 IDC meeting, OSM will
give an overview of the recently completed Transportation
Study and Jeff O'Neill will report on the process of
Comprehensive Plan Update.
d) Education - Shelley Johnson reported a Tech-Prep School
Program is under consideration with local contacts being
made to individuals like Brad Barger and Rusty Demeules.
Technical schools and colleges would also be brought in.
e) Marketing - No report.
8. OTHER BUSINESS:
a) No Chamber meeting in July.
b) Other - Koropchak informed members of the Governor's
Design Team which originally was under the Department of
Trade and Economic Development (TED). With a conflict of
interest, the team no longer operates under TED and
operates as a separate volunteer organization. The 16-
member team is comprised of various professionals:
Engineers, planners, social workers, economic
development, marketing, etc. They arrive on Thursday
evening, housing is through home-stays, and leave Sunday
morning. The intense two-day brainstorming is attended
by about 50-60 community residents who assess the needs
of the community. Saturday evening a banquet is held and
the team presents its findings and recommendations.
Koropchak reminded members that findings and
recommendations are no good without an implementation
plan, commitment, and a budget to back the plan.
Although physical attributes are evident, the greatest
results to both Becker and Clearwater was the development
of togetherness, positive city/township attitude of
cooperation, and established uniform objectives.
Koropchak stated she was by no means suggesting the City
of Monticello was at the point of smaller communities.
Monticello is a great community with many strengths;
however, she questions if the timing is right to
investigate new ideas, improve what exists, establish
uniform objectives. With the growth of the community,
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IDC MINUTES
JULY 21, 1994
individuals have expressed the sense of a lack of uniform
community objective. The team fee is $3,000.
Organization, participation, and commitment of the six-
month planning process is key to the success of the two-
day assessment. Involvement consists of the young and
old, all organizations, and city and township residents.
A community application must to submitted six-months
prior to the scheduled weekend event.
The IDC was receptive to the idea based on the
preliminary concept. Suggestion was to contact cities
equal in size to Monticello for results-orientated
program benefits and non-benefits. They did not see the
IDC as the coordinating organization. And further
suggested contacting other organizations and the city for
input prior to considering a presentation by a team-
member.
9. ADJOURNMENT.
The IDC meeting adjourned at 8:55 a.m.
Ch ~GL~
~~
Ollie Koropchak, IDC Executive Director
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