IEDC Minutes 11-01-2011MINUTES
MONTICELLO INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
TUESDAY, NOVEMBER 1, 2 011 - 7:00 A.M., BOOM ISLAND
MEMBERS PRESENT: Chair Rich Harris, Vice Chair Luke Dahlheimer, Bill Tapper, Dick
Van Allen, Zona Gutzwiller, Wayne Elam, Elaine DeWenter, Joni
Pawelk, Wes Olson
MEMBERS ABSENT: Patrick Thompson, Dan Olson, Chris Kruse, Don Roberts
LIASIONS PRESENT: Sandy Suchy, Chamber
Glen Posusta, City Council
Clint Herbst, Mayor
STAFF PRESENT: Economic Development Director Megan Barnett - Livgard, City
Administrator Jeff O'Neill
1. Call to Order
2.
3.
4.
Rich Harris called the meeting to order at 7:00 a.m.
Approve Minutes
JONI PAWELK MOVED TO APPROVE THE NOVEMBER 1, 2011 MINUTES.
MOTION WAS SECONDED BY BILL TAPPER. MOTION CARRIED 9 -0.
Consideration of adding items to the Agenda None
Reports
a. Economic Development
Suburban Manufacturing and Monticello -Big Lake Pet Hospitals are under
construction.
b. City Council
Suburban Manufacturing: Brad Barger of Suburban Manufacturing had complimented
City staff on quickly facilitating the process of constructing their new building.
Bertram Lake Park Project: Preparation of the Bertram Lake Park project shared use
agreement with the YMCA is underway. Staff will continue to work to also negotiate
access to the beach on the weekends.
IEDC Minutes 11/01/11
2012 Budget:
There will likely be one more workshop to finalize the proposed 2012 budget. The state
homestead credit will be eliminated in 2012.
The Building Department processed $12 million in commercial and industrial
development permits in 2011.
c. Chamber of Commerce and Industry
Chamber membership continues to grow. Sandy Suchy and City staff have been
working with downtown businesses in smaller groups to promote the downtown
project. The Government Affairs group will be starting up again in December and will
continue to be active with legislation. The Board is formally in support of the
downtown plan. Fifty downtown businesses gave out candy to approximately 1500
trick or treaters on Halloween. The Chamber Annual Banquet is scheduled for
December and the Fishing Tournament is scheduled for January.
d. FiberNet
Jeff O'Neill reported that one third of residents and over 100 businesses are connected
to FiberNet Monticello. Competition for providing telecommunication services has
recently become much more vigorous. TDS and Charter have dropped their prices
significantly. People are paying 25 -40% less than a few years ago for the same
services.
As a result of several factors, FiberNet will be utilizing funds from the City's liquor
store reserve to help subsidize the service until it cash flows. The one year delay in
establishing FiberNet due to the TDS lawsuit set the FiberNet financial plan back
significantly. The damages from the lawsuit were $4.5 million and the recovered costs
were only $800,000. The City had to pay interest on the bond for the project without
cash flow to offset that expense. Instead of the $26 million in projected funds available,
FiberNet began with $22 million. FiberNet was expected to be fully privately funded.
The only tax dollars exposed would be the reserve funds utilized to assist with cash
flow over time. If the market penetration rate continues to climb FiberNet should be
able to cash flow by the end of 2012.
Although FiberNet had expected residents to, over time, eliminate their land lines, the
speed at which this has actually happened has affected expected revenues projected in
the business plan. FiberNet had been counting on those revenues to help achieve cash
flow. In addition, the economy has slowed and fewer homes are being built in the
community.
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FiberNet must now step up its total build out and identify other services which can be
provided to produce additional revenue. Co- location would allow businesses to house
their servers in the secure environment of the Head End building and have access to
them for backup. FiberNet is also pursuing providing air service for township residents
within view of the water tower. There may also be an option to ask investors to reduce
the interest rate and stretch out payments in order to help out in this climate and keep
FiberNet moving forward.
Sandy Suchy reported that FiberNet must be making a market impact because Charter
Communications asked to do some significant advertising through the Chamber.
e. Transportation Advisory Committee (TAC)
The TAC will bring an update to City Council requesting authorization to do some
further study. The TAC meets on November 17th. Final TAC formal recommendations
will be brought to City Council for action.
5. Concierge Team
a. Breakfast with Mayor /Administrator
1. Cornerstone Chevrolet
Staff has arranged a breakfast meeting with the owner and plant manager of
Cornerstone Chevrolet on November 4th
2. Walker In Store
Staff has arranged a breakfast meeting with Walker In Store representatives on
November 161h
b. Site Visits
Staff has arranged for a tour of the Aroplax Corporation facility in November.
c. Word on the Street? There was no committee input.
6. BR &E WrauUP
The BR &E Leadership Team will present impacts of the report conducted by the U of M to
show local businesses what positive changes have been made over the past year at the
December Chamber lunch meeting. Staff asked for IEDC participation on the panel.
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7. Embracing Downtown Update /Discussion
a. October 24, 2011 Open House
There were over 85 people in attendance (not including city officials) at the Embracing
Downtown Open House. Consultants responded to a lot of good questions and
participants seemed to be pleased to have the opportunity to learn more about plan
implementation and to see the visual renderings of the project.
b. Implementation Steps
The EDA authorized appraisals be done at the corner of Highway 25 and Broadway in
order to move forward with purchasing parcels and redeveloping that intersection.
8. Industries Update /Initiatives
a. MNCAR Event
Megan Barnett - Livgard and Wayne Elam attended the annual MNCAR event as a way
to showcase and market Monticello. Staff has been contacted by some of the
commercial real estate agents in attendance in an effort to establish projects in the City.
b. MD &M Tradeshow
The City shared a booth with Positively MN at the Medical Device and Manufacturing
tradeshow.
c. MN Real Estate Industrial Summit
Staff will sponsor a booth at the MN Real Estate Industrial Summit in November.
d. Regional Manufacturer's Meet and Greet
Staff joined representatives from Big Lake and Elk River at the Regional
Manufacturer's Meet and Greet to learn about challenges and opportunities facing local
manufacturers.
9. Review member terms and discuss future officers
There are 13 members currently serving on the IEDC. The committee can be comprised of
up to 18 members. The IEDC will vote next month on future officers and renewal of
member terms beginning in January 2012. Current Vice Chair Luke Dahlheimer has agreed
to chair the committee in 2012. Bill Tapper, Patrick Thompson, and Elaine DeWenter's
terms expire in January. Bill Tapper and Elaine DeWenter are willing to serve for another
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term. Patrick Thompson was not in attendance. Some suggested that it might be useful to
also have representation from Aroplax and FiberNet on the committee. Staff will ask Steve
Schoen about his interest in serving.
RICH HARRIS MOVED TO NOMINATE JONI PAWELK AS VICE CHAIR OF THE
IEDC FOR A TERM BEGINNING IN 2012. MOTION WAS SECONDED BY DICK
VAN ALLEN. MOTION CARRIED 9 -0.
10. Adiournment
BILL TAPPER MOVED TO ADJOURN AT 7:58 AM. MOTION WAS SECONDED BY
DICK VAN ALLEN. MOTION CARRIED 9 -0.
Recorder:
Approved:
Attest:
Kerry T. Burri
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