EDA Agenda 11-02-1993AGENDA
ADVANCED FOOD SCIENCES, INC.
:i LAND O'LAKES, INC.
Tuesday, November 2, 1993 - 1:00 p.m.
Monticello City Hall
Participants: Peter Lytle, General Manager of Process, Land
O'Lakes, Inc.
Jim DeVine, Project Consultant
Debra Palmquist, NSP Economic Development
Consultant
Lenny Kirscht, Business Development Services, Inc.
Ken Maus, Mayor of 11onticello
John McVay, IDC Chairperson
Ron Hoglund, EDA Chairperson
Al Larson, HRA Chairperson
Harvey Kendall, IDC Member
Rick Wolfsteller, City Administrator
Jeff O'Neill, City Assistant Administrator
011ie Koropchak, Economic Development Director
INTRODUCTIONS
WELCOME - Mayor Ken Maus
MONTICELLO "YOUR KIND OF PLACE" - 011ie Koropchak
NATURE OF COMPANY AND ITS PROCESS - Company Representatives
PROJECT CRITERIA FOR DISCUSSION
SITE (10 ACRES)
BUILDING PHASE I
PHASE II
PHASE III
EMPLOYMENT PHASE I
PHASE II
PHASE III
TYPE OR JOBS AND AVERAGE WAGES
SEWER AND WATER CAPACITY
OTHER UTILITIES
POTENTIAL RAIL (ANTICIPATED RAIL USE)
FINANCING
,3. USE OF FUNDS - $15,000,000
$ 3,000,000 - REAL ESTATE
$12,000,000 - EQUIPMENT
SOURCES OF FUNDS - $15,000,000
EQUITY
BONDS (INDUSTRIAL OR G.O. TIF)
BANK
SBA
TIF
GMEF
STATE FUNDS
CMIF
REA
TRUCK TRAFFIC/ROAD MANAGEMENT SYSTEM
MONTICELLO AND TECHNICAL SCHOOLS
RESPOND TO QUESTIONS
ADDITIONAL QUESTIONS AND DISCUSSION.
CONCLUSION AND FOLLOW-UP.
ADVANCED F00D SCIENCES, INC.
DIVISION OF LAND O'LAKES, INC.
Monday, November 1, 1993
Does the City of Monticello have funding available in the form
of community bonds with up to IS million dollars, for this
type of project?
Because the City of Monticello is unclear as to your meaning
of "community bonds", we are unable to respond to this
question prior to our scheduled meeting. Will Land O'Lakes,
Inc. back the "community bonds", or is the request for the
City of Monticello to back the bonds? Based on a final
project description and a positive credit analysis, the City
of Monticello will propose a most aggressive financial
package.
Would the City of Monticello be willing to build this facility
with a lease back agreement? (Minimum investment of
$15,000,000 for the first phase)
The City of Monticello has an established Economic Development
Authority which has the power to build and lease back a
facility: however, again, some questions need to be answered
prior to the City committing a response.
R 3. Would the City of Monticello be willing to increase its sewage
(, management oyatem to handle expansion of this facility?
After defining the term "high" BOD loads and particulates, the
City of Monticello's current sewage system may be determined
as sufficient. However, to assure a consistent SOD load and
particulate flow, the City may suggest the construction of an
on—site holding tank. The City of Monticello's Five Year Plan
calls for the expansion of the Waste Water Treatment Plant.
This facility is likely to command world wide attention. Can
the City of Monticello support an influx of visitors requiring
lodging, restaurants, etc?
Yes, the City of Monticello has numerous eating and dining
facilities and three motels.
The City of Monticello already has an influx of international
visitors as Bondhus Corporation exports products to Japan,
Germany, Canada, and is currently exploring the Russian
market. The company also has a production facility in
Barbados. Additionally, the H -Window Company (a Norwegian
company) and the Northern Stntea Power Nuclear Plant
frequently receive world wide visitors and attention.
ADVANCED FOOD SCIENCES, INC.
NOVEMBER 1, 1993
PAGE 2
5. Does the City of Monticello have a facility to conduct
training sessions or seminars for up to fifty individuals at
a time?
Yes, the City of Monticello has several facilities which can
accommodate between 15 to 100 individuals for training or
seminars. Such facilities are the NSP Training Center,
Riverwood Conference Center, and the Silver Fox Best Western
Motel.
6. Is cold and dry storage available in or near the City of
Monticello?
The City of Monticello has been in contact with a cold and dry
(all -temp) storage company who is interested in expanding to
Monticello based upon securing long-term lease commitments.
7. During harsh weather, does the City of Monticello have
sufficient road management systems that allow employees to get
to wurk daily?
Yes, one of the positive comments made by Monticello residents
is the quality of equipment and high standards of the City's
road management system.
CITY OF MONTICELLO
O Qg_,� 'q�,0
011ie Koropchak
Economic Development Director
I
kXT 29 '?3 0_:0JFt•1 EI—E:,: MIT 51�1_-�:FE P.12
Post-It'- bland tax transmittal memo 7671 J-10"41 •IS? I •w.n•m s,.,w °•�•. eo°,••°•r
,conomic Dcvclopmem
1" d° NyP I
10— Po .
330— 6"4a
October 28, 1993 ��••• ( }9`7 ' /-'d0,V rviL 3 3v-114Nic°lk-Mh11
.Ilnn.apolit. mi.55401
612 1305879 fax
Dear Community:
I am pleased to inform you that your community is on a list of first tier finalist for a state-of-
the-art food processing facility. Recently, you responded to a RFP from Northern States
Power Company. Your response was appreciated and has helped in the evaluation of
your community with regard to hosting a new company with an exciting and new
food/pham:aceutical processing method.
The company that has initiated this search is ADVANCED FOOD SCIENCES. INC. (AFS),
e division of LAND O'LAKES. INC. AFS is leading the commercialization of a new
technology, utilizing aseptic food and pharmaceutical processing. Over 25 companies are
currently involved in the joint development of this technology with AFS. A new corporation
with AFS as the lead partner will be formed shortly, for the purpose of commercializing
this technology of which your community could be a part of.
We need to Identify some critical criteria that will contribute to the overall success of this
venture. Your response to the following questions will assist our team in selecting the
next lists of candidate communities. After you have completed the questionnaire. the
client team will meet with you as soon as possible to answer any questions you may have.
Does your community have funding available in the form of community bonds with up to
15 million dollars, for this type of project?
Would your community be willing to build this facility with a lease back agreement?
(Minimum investment of $15.000.000 for the first phase)
Would your community be willing to Increase its sewage management system to handle
expansion of this facility?
This facility is likely to command world wldo attention. Can your community support an
Influx of visitors requiring lodging, restaurants, etc.?
Does your community have a facility to conduct training sessions or seminars for up to fifty
individuals at a time?
Is cold and dry storage available in or near your community?
During harsh weather, docs your community have sufficient road management systems
that allow employoos to get to work daft'?
Please respond by via fax November 2. 1993 to Deb Palmquist at 14SP.
(FAX: (612)330-5878/PHONE(612)330-6746).
OCT ZS '93 03:02PM ELE': MKT SO-IPFE P.Z"2
J
' o
ADVANCED FOOD SCIENCES, INC.
OHMIC PROCESSING
OHMIC heating occurs when electric current is passed through an electrically conducting
1. food product The passage of current generates heat which sterilizes the food. The depth
of heat penetration is unlimited. A continuous flow OHMIC system can process particulates
up to one inch cubed. Particulates and carrier medium are heated virtually simultaneously.
Over processing of the carrier medium is avoided. Temperature gradients within the
particulates are minimized. Mechanical damage to the particulates is minimal. OHMIC
product quality exceeds traditional processing methods due to higher retention of flavor,
texture, color, and nutrients.
OHMIC processing has been commercialized in Europe and Asia. It recently received the
Dupont Award for innovation in food processing. An APV OHMIC system was introduced
to U.S. food companies by Advanced Food Sciences, Inc, in October of 1992. The AFS
Center for OHMIC Commercialization facility has produced ESL refrigerated, acidified and
low acid foods for a consortium of 25 major food processors and technical partners.
4M1 1p111191011 Avenue Nonh. Alden Y411110 �OtlIMl: �.0. 90n 111, YInI1YpOl1�, YN Sy�0.0116 gev
ADVANCED FOOD SCIENCES, INC.
DIVISION OF LAND O'LAKES, INC.
i Monday, November 1, 1993 - 11:00 a.m.
Mayor Ken Maus, Administrator Wolfsteller, Assistant Administrator
Jeff O'Neill, Public Works Director John Simola, IDC Chairperson
John McVay, HRA Chairperson Al Larson, EDA Chairperson Ron Hoglund,
and Economic Development Director 011ie Koropchak.
PROJECT HAS INCREASED FROM $8,000,000 TO $15,000,000
20% REAL ESTATE - $ 3,000,000
80% EQUIPMENT - $12,000,000
PHASE I TO BE LARGER THAN FIRST ANTICIPATED.
WAGE RANGE: $12.00 to $23.00 includes benefits
$ 8.60 to $16.10 (use of 30% for benefits)
AVERAGE WAGE: $15.00 to $16.00 includes benefits
$10.50 to $11.20 (Use of 30% for benefits)
Entry level cleaners, food technicians, engineers,
machinist, etc.
Will do training.
L
iKT 07 'S; !2:.:T -PM E'iC PMT SQUARE P.:2
M 1]hY M: t♦Y:lL:
TARGET DATE FOR OPERATIONS TO BEGIN: December, 1994
0 TYPE OF PROJECT: A subsidiary of a top 50 food company, leading a consortium of
food manufacatres, is seeldng a location for a state-of-the-art food pro=ing facility.
O DIFOP-MATION NEEDED: Information on available buildings/sires meeting criteria and
a description of incentives and financing tools your community can offer.
'0 WADER OF EMPLOYEES: 250-300 Hill time. There will be 3 shifts operating 24
hours per day, 250 days per year (5 days per week).
0 CAPITAL DrvMTMENT: $8 million
SCOPE OF SEARCH: Minnesota
SPACE REQUIRKN MS: Manufacturing facility suitable for food ptocessing, or
buildable site of 10 acres (to allow for expansion potential).
0 WATER AND SEWER CAPACITY: The community must have sewer capacity to
handle high BOD loads and particulates. 8000 gallons of water/day process water at a
minimum will be required.
O SIZE REQUIRMM=: Existing building of 8-10.000 sq. ft. for AM phase. Phase II
requites 32,000.40,000 sq. R. and Phase M up to 64,000.80,000 sq. &
0 SPECIAL FEATURES NEEDED: Ceiling height of 30' minl!num, up to 40' desired.
FDA approved building with freezer and refrigeration space is preferred.
0 V*'RASTRUCIVRfi: The company desires a site/btdlding served by rail. Rail siding to
the site is preferred, but should not preclude sites that have rail potential. Rail service will
be mom important in Phase II and M. Initial electrical load of 300 KW; iaaeased to 600
KW in Phan II and M. Natural gas service to the site/building. Acorns to process steam of
1000 lbs/hr at 130 psi desirable, but not essential.
DE.ULM Please provide your response by 3:00 p.m. October 19, 1993.
QCT: Debra B. Palmquist
Economic Development Consultant
Northern States Power
414 Nicollet Mill (RS4)
Minneapolis, MN 55401
(612) 330.6746
Pax: (612) 330.5878