City Council Minutes 11-10-2003 Indusrial Land MeetingMINUTES
SPI+.CIAL MI?ET[NG _ MONTI(,I+~LL~O (,ITY ~'O[1NCIL
Monday November 10, 2003 - G p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Slnith, Brian Stumpf and 13rucc
Thielen.
Members Absent: None.
1. Call to Order.
Mayor 'I'hiclcn called the meeting to order at (~ p.m. and declared a quorum present.
2. Presentation -Ollie Koropchak, rcc~n~>!mic Deve__1c~Pment Director.
Ollie Koropchak, Economic Development Director, made a presentation to the Council
concerning the Indl]Stl•lal land Cil•Otll) SL1bcQmmlttCC'S Wol"k In COf)lingT llp wlth pOt(°ntlal SItCS tpl•
a city owned industrial park. Initially five sites were considered and through a review process
the subcommittee narrowed it down to two sites, the Monticello Commerce Center <.uld the Otter
Creek (Tossing sites. '1'11c city's financial consultant did a cost analysis fbr the two sites. Ollie
Koropch~lk reviewed the cost analysis information with the Council. Based on the cost analysis,
the Otter Creek site became the primary focus.
Ollie Koropchak presented a map of the area and noted several issues relating to the
infrastructure including road access and location of the lift station. City l~,nginccr, Bret Weiss
stated the lift station could be placed at either County Road 39 or located on "Center Road" but
he felt tl~e preferable site would County Road 39 bccausc the trunk lines are there. 1 Ic also felt it
would be more advantageous to have Chelsea Road going through all the way to County Road 39
as this would open up the lots along the freeway. Bruce 'l'hielen asked if the site h~.ld been reined
out. Bret Weiss responded that only a corner of the property lia.s been mined.
Ollie Koropchak reviewed the recommendations of the Industri~:ll Land Group Subcommittee.
'I'11e Otter Creek Crossing developer offered to sell the lalad at $.61 /SF but this offer would expire
on November 15, 2003. 'l,he recommended counteroffer is $.SS/SF because of the high cost to
provide tl~e infrastructure. Glen Posusta asked about the mining operation and whether the
reclamation work would be completed prior to any purchase. Ollie Koropchak replied tl~at the
City 1~:nginecr and City Attorney would have to advise on the mining issues. Bruce Thielen
asked how much of the proposed land cost had been funded. Ollie Koropchak. indicated that the
HRA and the City had combined reserve totals of $9 ~ I,000.
Bruce Thielen asked if it is known yet what the relocation cost would be fore the redi-mix plant.
'I~hcre was some discussiol~ on the relocation of the plant to the Otter Creek Crossing site and
where would he an appropriate location for the plant. .Leff O'Neill felt the better site for the redi-
mix plant would be along TH 25 bccausc of the direct access. (ilcn Posusta asked if it was
certain that the plant wanted to remain in Monticello. Brian Stumpf asked about the difference in
square foot cost between the property along the new road and the property by the freeway and
Special Council Meeting Minutes-11/10/U,
questioned why the Clty dldn't acquire the land along the freeway. It was nosed that the freeway
property would probably run about $i._50/SF.
Rick Wolfsteller addressed some financial implications for the City. A contract for deed would
have a proposed interest rate of 7% which is more that the City is currently earning on moss of its
invcstt~lents so if the City did pursue acquisition of the property they would look ai utilizing
reserve funds. However, the City does have others items to consider such as the library
expansion and the reds-mix relocation. While the City could use their reserves to purchase the
land they would probably neG'd t0 borl•oW 1LIIlds t0 pllt 111 LIt111tles. It Was also noted thal aeCesS
on Chelsea. Road is still a problem since the City does not have the right of way.
Bruce Thielell questioned whether the City wanted to be owI)ers of an industrial park and was the
Council. comfortable making this type ol~ investn)ent. Ullie Koropchak stated that one owns the
land it changes the marketing strategy. 'the City can't market a land price because the City
doesn't own any land. ()]lie Koropchak asked if the recommelxlation of the subcommittee is on
the Council is conllortable with which was to proceed with preparation of a purchase agreemelit
alld to look at terms. C3ruce 'I'1lielen stated he Ielt uncomfortable with this until the City knows
about the cost. to relocate the reds-mix plant. Rick Wollaieller said if the Council was not ready
to make a decision they could ask for an extension. Brian Stumpf wanted assurances that the
lands were there if the City decided to pl.u-chase the land. .Rick Wolfsteller said reserves iIl the
general l`und and money budgeted for the last five years would cover the land costs but it would
leave the City with very little reserves for other projects Auld the City would need to borrow in
oI•der to put in the inI`rastructlarc. Mary Liarger stated that the City owns ille Remmlc property
which could be sold. She staled that the subcommittee was asl<ilig for permission to negotiate
the terms of a purchase agreement. F3ret Weiss suggested that the City may want to continue
negotiations over the next 45 days and bring back a purchase agrecnaent after the first of the year.
13y that time more will be known about the cost for the C'SAfI 18/I-94 interchange and the cost
to relocate the reds-mix plant.. Ollie Koropchak stated that the City is making a counter offer.
There was no negotiations prior to Chadwick presenting his offer. Mary Barger said the
subconunittee felt if the property is purchased and improvements go in, the property along the
freeway would develop fairly quickly alld bring money into the City.
3. Adjourn
F3ruce Tliielen adjourned the special workshop mcetillg at 7 p.rn.
Recording Secretary
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