IDC Minutes 05-17-2001
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, May 17, 2001 - 7:00 a.m.
City Hall - 505 Walnut Street, Academy Room
MEMBERS PRESENT: Kevin Doty, Don Smith, Bill Tapper, Don Roberts, Mike Benedetto,
Mary Barger, Susie Wojchouski, Barb Schwientek, Ellen Perrault, and
Dan Olson.
MEMBERS ABSENT: Chair Dick Van Allen, Vice Chair Tom Lindquist, and Tom Ollig.
COUNCIL LIAISON ABSENT: Mayor Roger Belsaas.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
Call to Order.
Kevin Doty, appointed as acting chair, called the [DC meeting to order at 7:00 a.m.
2. Welcome and introduction of new IDC members.
New IDC members Barb Schwientek, Ellen Perrault, and Dan Olson were introduced and
welcomed. Each member introduced themself and stated their professional association.
Approve the April 19, 2001 [DC minutes.
Don Smith made a motion to approve the April 19, 2001 IDC minutes. Don Roberts seconded
the motion and with no corrections or additions, the minutes were approved as written.
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4. A. Marketing Subcommittee Update:
IZReview draft copy of ad for 2002 Community Guide and ratify the decision of the
Marketing Subcommittee to place an ad.
Don Smith, member of the Marketing Subcommittee, gave a brief history of the subcommittee
stating its membership is comprised of HRA and [DC members. The subcommittee funds are
derived via a request from the HRA to the City Council at budget setting time. The
subcommittee elected to place a full page ad (inside back cover) in the 2002 Community Guide
at a cost of $1,250. The guide is distributed by the Office of Economic Development, G~amber
of Commerce, City Hall, local lenders, welcome wagon, real estate, hospital recruitment, etc.
Due to previous discussions and the interest of the Chamber to promote the City of Monticello,
the subcommittee is requesting the Chamber of Commerce split the cost of the ad in the amount
of $625 each. Smith presented a copy of the ad which promotes industrial development within
the City of Monticello. The ad is centered around the Twin City Die Castings project with
quotes by the CEO of the TCDC and the project manager of the general contractor. Barb
Schwientek made a motion to ratify the decision of the Marketing Subcommittee to place an ad
in the 2002 Community Guide at a cost of $1,250 and requesting the Chamber of Commerce to
split the cost. Seconded by Mary Barger and with no further discussion, the motion passed
unanimously.
IDC Minutes - 5/17/01
2) Approve [DC Letter to Chamber of Commerce.
Upon the request of the Chamber Director and the direction of the IDC Chair, Koropchak was
asked to draft a letter to the Chamber re-affirming the IDC's agreement within the 1996
Organizational Restructure Agreement, stating the 1DC ratified the decision of the Marketing
Subcommittee to place an ad in the 2002 Community Guide, and requesting the Chamber split
the cost of the community guide ad ($1,250) at $625 each. As a benefit to the new members,
Tapper gave a brief history of the agreement and the transfer of the $9,640 by the IDC to the
Chamber. Although undocumented, the intended use of the dollars was for the good of the City
of Monticello stated Tapper. Bill Tapper then made a motion to approve the letter to the
Chamber of Commerce as drafted. The motion was seconded by Don Roberts and with no
further discussion, the motion passed unanimously.
B. Economic Development Report.
Koropchak reviewed the attached report. In addition, it was noted that the HRA and EDA have
received letters of commitment for funding and the "but for" test from the lender of Integrated
Recycling Technologies, [nc. Closing documents are being prepared for an anticipated closing
date of June 12 or shortly thereafter. Delivery of steel is expected around June 25. Secondly,
EDMA is now interested in Monticello as Rockford's minimum lot size is two acres. Cost of
city owned land $70,000 ($22,000 per acre plus $46,000 per acre in assessments). Looking for
smaller lot size availability in Monticello. Thirdly, meeting with Production Stamping, Inc.
Now looking at 40,000 sq ft building, may be 2001 or 2002 project. To check out availability of
State and Regional funding. Four-acre parcel perhaps located with the extension of Dundas
Road.
Last, a lead from lender. 10,000 sq ft metal building. Welding/fabricator. 5/6 jobs. Lease up
February 2002.
C. Mayor's Report.
No report.
Membership Co-nmittee:
Al Update or Acceptance of a Township Board Member as IDC member.
Smith reported he has left a message with a township board member and has received no call
back. However, Smith stated he just ran out of time and will pursue for an update in June.
B) Letter to Mosford.
For purpose of followup, a copy of the letter to Mr. Mosford relative to IDC decision on the
request for leave of absence was attached.
6. Industrial Land:
A) Short Tenn, Acquisition of Industrial Land -Update and discussion whether to recommend
proceeding with acquisition of Chadwick/Goeman or to look at other options.
A copy of the cover letter from Chadwick dated May 14 to the Mayor/Council and the April 18
land purchase offer was distributed to 1DC members. In the absence of the Chair and Vice
Chair, Koropchak requested direction from the IDC whether to recommend proceeding with the
acquisition of the Chadwick parcels or to look at other options. Wolfsteller recapped the offer
for the entire 180 acres as $3.2 million and $650,000 for gravel rights. The following is a recap
of the IDC discussions: Could the City negotiate a better deal for Parcels A and B in exchange
for re-zoning of Parcel C? Perhaps. However, a re-zone takes a 4/5 vote of the City Council and
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IDC Minutes - 5/17/01
the MOAA. Commerc-al development would create a tax base equal to mdustrial but generally
speaking wages of commercial development are less. How much of Parcels A and B is
developable? Wolfsteller estimated 100 acres of the 143 acres. In addition to the wetlands and
power lines, the acreage south of the proposed West Chelsea Road is currently zoned residential.
Is the acreage lying westerly along I-94 reserved for a folded cloverleaf? What is the incentive
to purchase the wetland? Ponding, offer is $ .02 per square foot. is $30,000+ per acre a
reasonable price for undeveloped land along 1-94? One me-nber stated undeveloped land sold
for $20,000 per acre in Elk River (80 acres consisting of low-land) beyond Walmart and Hwy
169. Another mentioned Big Lake purchased property for $14,000 per acre. Does Chadwick
need the city and is that a benefit for negotiating? Putting numbers aside: How motivated is the
City to make an investment or should the Chadwick Group develop the entire parcel? If not the
Chadwick property, where then? Again, the Chadwick Group needs a zoning amendment at the
City and MOAA level and needs the City to obtain access to the I-94 parcel via West Chelsea
Road. Doty asked the IDC to bring the discussion to a closure, noting the number of years the
IDC has requested the City to obtain land for marketing. Members felt there was room to
negotiate. Don Smith made a motion stating: Again, the IDC sees the need for industrial land
and encourages the City to continue negotiations with Chadwick and requested the IDC Chair
and Vice Chair give input and be present at the City Council meeting of Tuesday, May 29.
Mary Barger seconded the motion and without further discussion, the motion passed
unanimously. As a lobby organization, IDC members can independently lobby Council
members.
B) Long Term, Cooperative Land Use Decisions -Update on meeting between Benedetto, Van
• Allen, and O'Neill.
Benedetto stated the group's focus is long term, 20-25 years out. What's best for the area, the
big picture? The first meeting held between Van Allen, O'Neill, and himself centered around
strategies. To get off center, the group will start small with discussions a-nong Franklin Denn,
Township Chair, and Dick Frie, Planning Commission Chair. Others will be added later such as
Pat Sawatzke. Tapper made two suggestions for the group: To use Q1f`a model such as Maple
Grove looking at their 20 to 30-year planning and growth in five-year increments. Secondly, to
look across the river for potential growth, town boundaries do cross rivers such as St. Cloud.
Feedback relative to "Is the objective of the Industrial Luncheon bein -g net?"
The IDC recommended the Marketing Subcommittee assess the objective of the Industrial
Luncheon and give it a fresh look as was done with the Industrial Banquet.
8. Other business.
a) Chamber Lunch, Vintage Grill, May 17, 1 1:50 a.m. - 1:00 p.m. Program DSL by TDS
Telecom.
Adjournment.
The IDC meeting adjourned at 8:50 a.m.
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Recorder
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