IDC Minutes 10-18-1990
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MINUTES
MONTICELLO INDUSTRIAL DE ELOPMENT COMMITTEE
Thursday, October 18, 1990 - 7:00AM
City Hall
MEMBERS PRESENT: Vice Chairp rson Don Smith, Dale Lungwitz,
Ron Hoglund Tom Pogatchnik, Jqhn McVay,
Ken Maus, D ve Peterson, and Jay Morrell.
MEMBERS ABSENT: Shelley John on, Harvey Kendall, Bob Dawson,
Lowell Schru p, Arve Grimsmo, Dennis Taylor,
Linda Mielke and Tom McDermott.
STAFF PRESENT: Ollie Koropch k.
STAFF ABSENT: Rick Wolfstell r and Jeff O'Neill.
1. CALL TO ORDER.
Vice Chairperson DonSmit called the IDC meeting to order
at 7:10 AM.
2.
APPROVAL OF THE SEPTEMBER 20, 1990 IDC MINUTES.
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Dale Lungwitz made a moti n to approve the September 20,
1990 IDC minutes, seconde by Ken Maus, the minutes were
approved as written.
3.
CONSIDERATION TO HEAR IDC FINANCIAL REPORT.
Treasurer Ron Hoglund rep rted current balances in Wright
County State Bank of $1,857.86 and $48.65, and a current
balance in Security Financing of $4.042.89. Total balance
of $5.949.40. Dave Peterson made a motion to accept the
financial report as given. seconded by Tom Pogatchnik.
the report was accepted a d filed.
4. PROSPECTS: Jeff Eastey terprises. Inc. - the company
hasn't secured the necessary SBA Bank Financing.
The company .s in process of preparing their
third quarter financials for re-evalution of
loan request.
Yeager. Pine
received fro
the completi
for an indus
and Mundale - No response has been
this consulting firm who requested
n of an eight page questionaire
rial prospect.
1.2 million q ft Distribution Center - In
late Septemb r, John McVay submitted the City
of Monticell as a possible site location for
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IDC Minutes
10/18/90
Page 2
4. CONTINUED.
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this large di
state company
Department of
for site sele
to respond to
FAXED marketi
response was
their visit t
from Arkansas
toured Montie
The represent
site during t
an approximat
a major highw
truck traffic
by staff, abu
encourage an
easy access t
acres of Klin
industrial pa
and city prop
Third site wa
of the east t
tribution center. The out of
is working through NSP and the
Trade and Economic Development
tions. With the one day notice
the company's questions, the city
g information and maps. A detailed
iven to the company officials upon
Monticello. Two represenatives
Terrell Towers of MN TED, and staff
110 and the two designed sites.
tives became interested in a third
e tour. The company needs are for
150 acres with direct access to
y, will employ 500+, and daily
of about 800. The sites earmarked
ted the city limits which should
asier annexation process and would provide
city services. The sites were 160
property to the south of the existing
k and 150 acres of Wolters, Hoglund,
rty to the west of South Highway 25.
the Kjellberg property to the south
ailer park on South Highway 25.
Mayor Maus re uested vertification of truck traffic numbers
to assist in valuation of the increased traffic and the
impact on the community.
The represent tives visited the communities of Faribault,
Owatonna, Lak ville, Monticello, Paynesville, Sauk
Rapids, Anoka, Brooklyn Park, and Woodbury.
Time frame:
beginning in
February '93.
ecision in March '91, construction
all'9l, and shipping operational in
15,000-20,000 sq ft leaseable facility - the
manufacturer of potato planters and harvestors
is looking fo leaseable space for a relocation
and expansion. The established company would
employ 50 wit future expansion of up to 40,000-
50,000 sq ft and potential of 100 employees.
Prefer a lease with option to purchase. The
company with a soon as possible time frame
will continue to look elsewhere.
8,000 sq ft leaseable facility - Mr. Leo Adams
is looking for leaseable space to produce multi
circuit boards. The company is a start-up and
would provide 15 high tech jobs. Arrangements
have been ma e to view the M&P Transports, Inc.
available sp ceo
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IDC Minutes
10/18/90
Page 3
4. CONTINUED.
30,000 sq ft le
direct contact
has inquired of
process product
of their statis
response has be
seab1e facility - Unable to make
ith Mr. George Briscoe, Koropchak
the service company for food
and pharmaceutical products
for relocation by mail. No
n received from Mr. Briscoe.
5. CONSIDERATION TO FINALIZE T E IDC BAN UET.
Koropchak reported all was in order for the banquet and encouraged
members to sell their tick ts. Guest speaker to be Dr. George
Karvel, and local testimon"es from Tapper's Inc., Remme1e Engineering,
and Bondhus Corporation" on Hoglund, Dale Lungwitz, and Harvey
Kendall volunteered to ser e as greeters. Koropchak is to
order name tags for Tom Po atchnik, Dave Peterson, Tom McDermott,
John McVay, Ken Maus, and ay Morrell. Koropchak will call
IDC members on Thursday, 0 tober 25, for number of tickets sold.
6. CONSIDERATION OF FOLLOW-UP ON THE POTENTIAL LEASEABLE BUILDING
PREPLANS "
Koropchak reported that s"te location maps had been mailed
to Shingobee and fo1lowin the IDC meeting Gae Veit and
herself would tour the in ustrial sites for on-site
familiarity. The IDC mem ers recommended 1easeable building
prep1ans be opened to oth r contractors. Koropchak expressed
the need for HRA concept pprova1 of the use of TIF prior
to preparation of any for a1 agreements.
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7. CONSIDERATION OF INFORMAT ONAL ITEMS:
a) Star City Awards: Koropchak reported that Monticello
didn't receive an aw rd as one of the All-Star Cities.
Cities selected were Champlin, Two Harbors, Hallock,
Windom, and P1ainsvi w. However, Monticello did
share first place fo its overall marketing program.
The award was shared with Litchfield and New Brighton.
Honorable mentions w nt to Burnsville, Northfield, Fairmont,
and Fairbault County Video awards went to Lakeville
and Windom.
b) GMEF Approval for Th atre Expansion: City Council did
approve the $50,000 GMEF loan for the theatre expansion
and also requested he EDA adjust the GMEF Guidelines
in the area of what constitutes a full time versus
part time job, main thrust of loan for industrial use
only, and how the p oject is tied to blight or under-
utilized property. Don Smith suggested the original
IDC members on the ommittee be invited to the EDA
meeting when the gu'delines are adjusted. These
are Linda Mielke, D le Lungwitz, Don Smith, Jeff
O'Neill and Koropch k. The EDA meeting is scheduled
for October 30, 1990 at 7:00 AM.
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IDC Minutes
10/18/90
Page 4
7. CONTINUED.
c) BRE Survey and Visits
that it was time for t
is one of the requirem
Previously, a member 0
Koropchak on the visit
in late November and e
recommended Koropchak
companies to members i
of visit. Members cho
meeting. The accompan
the effectiveness of t
d)
Tire Service Equipment
for the IDC to tour th
facility the first of
be mailed IDC of confi
an employment of six.
Koropchak informed IDC members
e annual industrial visits which
nts for Star City Recertification.
two of the IDC has accompanied
Plans are to visit the companies
rly December. The committee
ail a list of Monticello industrial
order to prepare for their choice
ce to be determined at next IDC
ing of an IDC member enhances
e visitation.
Welcome - Tentative plans are
Tire Service Equipment Manufacturing
ovember, however, a letter will
med date. Currently they have
e) PUC Order for Cost Stu y - On October I, 1990, the PUC
ordered Bridge Water Telephone Company and other telephone
companies serving the e isting metro calling area to file
cost studies and propos d rates for the proposed EAS within
60 days. Within 45 day of the filing the PUC makes a
report and recommendati n of costs and rates. Within
20 days of the PUC repo t the interested parties (Telephone
companies) may file co ents. Which in summary means
the soonest the EAS cos would be available is the
middle of February. Ba lots would be mailed thereafter.
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f)
REA Loan Criteria -
8. OTHER BUSINESS.
A R
the
Loa
for
Big
Fee
as
is
A loan may be applied for through
Bridge Water Telephone Company.
maximum is $100,000, interest free,
fixed assets. Paul Steinman of
Lake, said the application for Cargill's
Mill will probably not meet requirements
tIs for distressed areas and the money
ot received for approximately one year.
Koropchak reported that in alking with John Meyer, Farm Credit
Bank, he explained the comp ny's objective for the previously
owned Boyle Property.
1) To sell entire 401 acres to one party. 1.9 million dollars
2) Upon the company's decision for needed revenue, they have
three interested parties for 40 acres, 109 acres to the south of the
mf4dle school for r sidential development, and 105 for
PUD." ,
Boyle's asking price was 4 m"llion dollars.
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IDC Minutes
10/18/90
Page 5
B. gJNTINUED.
Koropchak further repOrted hat in talking with Mr. Jack
Peach, he told of FSI's ex ansion to Mexico and the planned
reduction in employment for St. Cloud and Monticello of
approximately 25-30% (110 jo sJ. This is not expected to
affect Big Lake employment. Within the next two and one-half
years, he anticipates the co pany to be moved from the State of
Minnesota because of the Min esota bUSiness climate. Move
anticipated to Arizonia.
9. ~JOURNME~.
Dale LunOWitz made a motion t adjourn the IDe meeting, seconded
by Tom Pogatchnik, the IDe me ting adjourned at 8:45 AM.
~ \<:'01 ~~Q~
Ollie Koropchak
IDC Executive Secretary
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