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IDC Minutes 09-20-1990 . MINUTES MONTICELLO INDUSTRIAL D VELOPMENT COMMTTEE Thursday, September 2 , 1990 - 7:00AM City Hal MEMBERS PRESENT: Chairperson Lowell Schr Ron Hoglund Maus, Linda Lungwitz. Shelley Johnson, Harvey Kendall, pp, Dave Peterson, Arve Grimsmo, Bob Dawson, Dennis Taylor, Ken Mielke, John McVay, and Dale MEMBERS ABSENT: Don Smith, J y Morrell, Tom Pogatchnik, and Tom McDermot STAFF: Ollie Koropchak. 1. CALL TO ORDER. Chairperson Shelley Johns n called the IDC meeting to order at 7:00 AM. 2. APPROVAL OF THE AUGUST 16, 1990 IDC MINUTES. . Ron Hoglund made a motion to approve the August 16, 1990 IDC minutes, seconded by arvey Kendall, the minutes were approved as written. 3. CONSIDERATION TO HEAR IDC FINANCIAL REPORT. Treasurer Ron Hoglund reported an IDC checking account balance of $48.65, money market balance of $1,855.65 at Wright County State Bank, and a money market balance of $4,041.32 at the Security Federal Banking & Savings. Total balance of $5,945.62. Arve Grimsmo ade a motion to accept the IDC financial report as gi en, seconded by Lowell Schrupp, the report was accepted and filed. 4. PROSPECTS: Jeff Eastey Enterprises, Inc. - the loan application for SBA 7(a) f nding is presently at the Wright County State B nk for review. Approval by the bank to participate in this financial package has not been determined. Because this loan application is between the developer and the bank, I except to he r of the loan approval/denial from the developers. The banks determination is expected to be made early ext week. After the company receives bank pproval for the SBA 7(a) program, will the GMEF orma1 loan application be analyzed and t e Central Minnesota Initative Fund applicati n be submitted. . Chairperson Jo the company's development, a repairs. Dale for the bank, of the lending nson encouraged the expansion as roduct is in it's prime stage for good product with the ability for Lungwitz said it's a difficult position s the EDA relies on the credit analysis institution officer. . IDC Minutes 9/20/90 Page 2 4. CONTINUED: Lake Tool - Lake Tool Company remains interested a Monticello location, however, Eric Bo dhus also reports that his company has been working with their largest customer, w o's now located in a north St. Paul s urb and anticipating a relocation. There is the potential of a joint relocation a enture. His largest customers is terested in a site closer to his e isting customers. Lake Tool's lease e pires in the fall of '91. . Yeager, Pine & Mundale - ropchak reported that the city had ceived a letter from a consulting firm questing information about Monticello d an enclosed questionaire to be completed. e eight page questionaire was distributed ong people with expertise in the area of se particular questions. She thanked those op1e and said the information was mailed August 21th. The consultant's client s interested in siting an industrial 'facility. nce having received no response and to comply wit the c nsultants request for no telephone calls, a follow-up letter of interest was mailed September 11. Koropchak has not heard om the consulting firm. Cargill Feed Mill - closed with the agenda IDC members received a copy of the letter received from Mike stpahl stating Cargill's site location to other than Monticello. As per the newspaper e site location was determined to be in the ty of Big Lake. The availability of rail w s a high priority of which Monticello's o ly zoned industrial land was the Hoglund p operty (I-I) which was served by a rail w ich does not receive daily maintenance. e property would have required a zoning a endment to 1-2. The IDC members recognized p tentia1 benefits to Monticello with a B g Lake location. The H-Window Company - A torney Tom Hayes drafted a Right of First R fusal of which the City Council has approved t e entering into an agreement with the H-Window C mpany. The agreement expires December 31, 1991 ~ d allows for 30 days to respond from the d te of notificatidnby the City of Monticello o an interested buyer. The H-Window Company bard will receive the document in October. . . IDC Minutes 9/20/90 Page 3 4. CONTINUED. 30,000 sq ft inquiry - On A gust 22, Mr. George Briscoe called and "nquired about the availability of a 30,0 0 sq ft 1easeab1e facility in Monticello. The ndisc10sed company is a service company for ood process products and pharmaceutical prod cts. 25-50 jobs in one year. Time frame of sox months. With no such size facility avai able presently, Koropchak explained the IDC's ~lans and a potential developer's willingness to construct a facility to meet their needs. The TIF pay-as-you-go assistance was explained and included with Monticello's marketing information The TIF Analysis/Lease Proposal was estimated at an nproximate $3.69 per sq ft rent cost, a red~tion of $1.00 per sq ft. Federal Cartridge Joh McVay reported that NSP has backed away from fur her site location assistance with Federal Car ridge, however, other sites in the Becker are are being considered. 5. CONSIDERATION OF FOLLOW-UP ON THE TIRE SERVICE E UIPMENT RECEPTION. . Koropchak reported she had date for the IDC members t meant as a welcome to Mont of the idea. Koropchak su this presents a conflict f will be out of town at a t Dale Lungwitz reported the holdings to the north lot next week. contacted Mr. Ray Schmidt to set up a visit and view his operations, this cello. Mr. Schmidt was very reciprocal gested the first week of October, however, r Ray and his partner as they ade show. The date will be set later. company is considering expanding their nd will be meeting with the partnership 6. CONSIDERATION OF FOLLOW-UP ON THE POTENTIAL LEASEABLE BUILDING PREPLANS. . Koropchak reported that Ga Veit, Torn Gow1eski, Pat Pe1string, and herself met and discus ed the idea of preliminary construction plans: the willingness of a developer to draft preliminary site plans for review and appro a1 by the City Building Inspector as a speculative concept, the willingness of a developer to locate an appropriate Monticello site and to arrange a land commitment between the 0 er and the developer. The City of Monticello could assist with TIF Pay-As-You-Go Lease Proposal of approximately $1.00 pe sq ft rent cost reduction. Pat Pe1string suggested three building plans of 15,000, 20,000, and 25,000 sq ft each with ma ufacturing and office space (office sq footage not to exceed 0% of the mfg sqfootage.) The plans to be very basic and of c ncrete. The developers were interested in the concept with the u derstanding the leasee must be a credit worthy business and be wi ling to sign a 10 year lease. It would be proposed that a TIF Plan be drafted and IDC Minutes 9/20/90 Page 4 . 6. CONTINUED. distributed to the taxing ju isdictions to allow the 30 day time allowance for TIF c mment. Mr. Bob Dieke suggested not to call a public hearing until a project is secured and the development agreement is agreed upon. A public hearing notice must appear at least nce not less than ten days nor more than 30 days prior to t e date of the hearing. Koropchak was to mail maps of all avai able zoned I-I and 1-2 property along with property contacts and telephone numbers to Shingobee. This concept would require an upfront TIF Plan drafting fee of $3,800. The IDC suggested the city attorney draft a performance agreement between the developer and the HRA/City. It was suggested to contact W"nkelman Construction of their interest. Gae, Tom and mysel will tour' the sites after the maps have been reviewed by Shingob e staff. . Enclosed in the agenda was a of a page from the Minnesota Enterprise, Fall '90 which Ii industrial space for lease or sale in Minnesota. It not 29,750 sq ft manufacturing facility available in Montice 10. Koropchak called Terrell Towers of the Depart of TED a d he said the listing was through O'Neill Realty of St. Cloud, on Weisman, 251-1177. Koropchak called the realty and the bUilding w s at 218 Chelsea Road, Clow Stamping. The listing was over two years old. Koropchak contacted Mr. Clow who reconfirmed his posit on of a year ago that Clow Stamping plans to stay in Mont.cello and is not interested in leasing out a portion of their manufacturing space. Available for rent is the upper level of ice space. That leaves the only available industrial space for lease in Monticello, to my knowledge, is the Jay Morrell ays. The IDC members recommended Ko opchak continue working with developers. 7. CONSIDERATION OF FOLLOW-UP ON Jeff O'Neill not present, no given. KETING STRATEGY. . 8. CONSIDERATION OF IDC BANQUET A TICKET DISTRIBUTION. . Koropchak handed out envelopes their contact list for IDC tick they should not limit themselve sales have declined in the prev members with a early ticket sal recent community developments t Shelly Johnson, Don Smith and K choice and program. o IDC members which contained t sales and reminded them that to the list only. Ticket ous few years, however, she encouraged s start, excellent speaker, and at tickets should sell easier. ropchak will finalize the menu . . . IDC Minutes 9/20/90 Page 5 9. INFORMATIONAL ITEMS: Koropchak in ormed the IDC members that Mayor Maus, upt. Shelley Johnson, and herself had ttended the Bondhus Company banquet whic was in honor of their visiting Japanese. Te twelve Japanese were presented with a Monti ello T-shirt and a Monticello marketing br chure. Koropchak thanked Ken and Shelley for taking the time from their busy schedules and expressed the importance of such kinds of exchange with our industries as it falls nder the IDC goals of BRE. Koropchak reported that Monticello was a candidate for one of teAll-Star City Awards to be presented at the Star City Banquet on Wednesday, September 27, 1990. Also, Koropchak had submitted for state competition Monticello's total marketi g program with an explanation of how the materials are or will be used. Two preliminary GMEF loan applications have been received for preliminary evaluation by the EDA Exec tive Director prior to formal application review by the EDA. The two applicants are Jeffreyastey and Salley Eastey, and Robert Muller and M chael Muller. The HRA is c catalyst to property mar in finding a zoned R-2. 10. OTHER BUSINESS: Koropchak reporte of Farm Credit to the former Boyle Farm Credit would developer is inte the Farm Credit c 11. ADJOURNMENT. The IDC meeting adjourned at 7:45 ~ ~~d,a\\~~ Ollie Koropchak IDC Executive Secretary rrently considering to act as a ssist Fred Gille on how to make his etable (PCA issues) and to assist potential developer for the property she would be contacting John Meyer check the current statis of roperty, to verify the process like the'cit~ to fol16w if a ested in the property, and who ntact person 1s.