IDC Agenda 04-20-1989
.
AGENDA
MONTICELLO INDUSTRIAL DE ELOPMENT COMMITTEE
Thursday, April 2 , 1989 - 7:00AM
City Hal
MEMBERS: Chairperson Shelly J hnson, Vice Chairperson Don Smith,
Lowell Schrupp, Ken aus, Rick Wolfsteller, Dale
Lungwitz, Arve Grims 0, Jay Morrell, Harvey Kendall,
Ron Hoglund, Linda ielke, Dennis Taylor, Jim Kruger,
Dale Pogatchnik, Dave Peterson, and Ollie Koropchak.
GUEST: Tom Dolly
1. CALL TO ORDER.
2. APPROVAL OF THE IDC MARCH 9, 1989 MINUTES.
3. TOM DOLLY: "MONTICELLO C
4. REPORTS OF PROSPECTS: UN ISCLOSED COMPANY
CE AR LAKE ENGINEERING
CU TOM SHEET METAL
Fa D PROCESSING
GA ENT SEWING MANUFACTURING
NS
CO STRUCTION FIVE
.
5. CONSIDERATION OF UPDATE 0 THE EDA AND THE GMEF.
6. CONSIDERATION TO ENDORSE
RAMP AT INTERCHANGE 118.
7. CONSIDERATION OF AN AIRPO T UPDATE.
8. CONSIDERATION OF THE BROC URE DESIGN PROGRESS UPDATE.
9. CONSIDERATION OF EXTENDED AREA PHONE SERVICES UPDATE.
10. CONSIDERATION TO SET A DA E FOR THE JOINT COMMITTEE MEETINGS.
11. OTHER BUSINESS.
12. ADJOURNMENT.
.
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MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March 9, 1989 - 7:00AM
City Hall
MEMBERS PRESENT: Chairperson Shelly Johnson, Don Smith, Ken
Maus, Dennis Taylor, Ron Hoglund, Arve Grimsmo,
Jay Morrell, Harvey Kendall, Dale Lungwitz,
Dave Peters n, Linda Mielke, Jim Kruger, and
Ollie Korop hak.
MEMBERS ABSENT: Rick Wolfste ler, Dale Pogatchnik, and Lowell
Schrupp.
1. CALL TO ORDER.
The Industrial Developmen Committee (IDC) meeting was called
to order at 7:04AM by Cha'rperson Shelly Johnson.
2. APPROVAL OF THE JANUARY 1 , 1989 IDC MINUTES.
.
Arve Grimsmo made a motio
IDC minutes, seconded by
approved as written.
to approve the January 19, 1989
on Smith, the minutes stood
CONSIDERATION TO DISCUSS HE PROCEDURE TO UPGRADE OR NOT
UPGRADE THE INDUSTRIAL PA K ROADS.
3.
.
Early summer of 1988, the City Council approved an evaluation
study of the Oakwood Indu trial Park street system in regard
to pavement strength. Th s testing was performed in July
by Braun Pavement Techno ogies and Council directed staff to
upgrade and overlay those areas of lower strength last fall
because the winter time t ble would make it difficult to
complete the entire proje t, however, this was not completed.
Because of the fast appro ching spring and the potentiality of
axle road limit posting i the park the IDC should consider
a recommendation to the C ty Council to proceed with upgrading
or not upgrading the Indu trial Park roads and secondly, to
discuss the potential of osting the roads this spring.
Jay Morrell presented his viewpoint on spring road posting
noting that most streets ere installed when the standard
was 7 ton and that the St te of Minnesota raised that
capacity of some state hi hways simply by posting higher
weight limits. In additi n, he felt that posting would
restrict most current Ind strial Park businesses and
would be a hindrance for arketing and resale of the park
property. Dale Lungwitz "nformed the IDC that the IP
was created approximately 18-19 years ago and the first
portion of Chelsea Road w s gravel. Life expectancy of
.
.
.
3. CONTINUED.
IDC MINUTES - 3/9/89
a road similiar to Chelse is 20 years. The committee
briefly discussed potenti 1 financing of the roads
from 100% assessmment, 80 20 ad valorem and assessed.
excess Tax Increment Fina cing or wait for a project.
Chairperson Johnson state, financing the project is a
Council decision. With a ditional comments of speed
and weight as the most de. riment to breaking up of the
roads and a large percent of the industrial roads today
are concrete the IDC was sked to consider a motion
for recommendation to the Council. Arve Grimsmo made
a motion recommending the City Council authorize a
cost analysis inclusive 0 a comparative cost between
upgrading the currently p ved streets and/or replacing
the streets with concrete to achieve the la-ton all
weather road standard. A so to include the probability
to complete the prject in a two-year phase; and if found
necessary, to request Wri ht County to upgrade the streets
to and from the industria park. The motion was seconded
by Jay Morrell and passed 12-0 with Ken Maus abstaining.
A second motion was made
"in the spirit of promoti
and out of courtesy of th
industrial park, the indu
posted this spring." Th
not marketable; 2) most c
roads; 3) not strictly en
and weight cause road bre
County Road 118, a 5-ton
the motion and passed 12-
y Jay Morrell recommending
g new industrial business
existing businesses in the
trial park roads not be
reasons being: 1) if posted,
mmunities don't post industrial
orced; 4) combination of speed
kup; and 5) school buses travel
oad. Dennis Taylor seconded
with Ken Maus abstaining.
4.
CONSIDERATION OF FINAL D FT OF THE ECONOMIC DEVELOPMENT
AUTHORITY ORDINANCE AND T E GREATER MONTICELLO ENTERPRISE
FUND GUIDELINES.
Assistant Administrator O'Neill advised the IDC that all
drafted documents for the creation of the EDA. Joint
Powers Agreement, and the GMEF Guidelines were reviewed
by the City Attorney. His opinion was he had no major
problems with the concept but suggested language change
to include non-discrimination on basis of race, sex, etc.
Koropchak questioned why DAG repayment was not included
and Mr. O'Neill responded he thought the repayment went
to the general fund. Dale Lungwitz suggested the leverage
minimum be set at 70% for Private/Public non-GMEF and
30% Public (GMEF). He further expressed his concern
of the general public impression that the local banks
indirectly will receive free money (line their pockets).
.
4.
CONTINUED.
The IDC suggested the Coun
such a program and supply
from other communities to
how the GMEF Guidelines mi
include the need for such
good deals (financial deci
and the importance of conf
made a motion to recommend
cosemetic changes suggeste
Council at the Public Hear
March 13. 1989. The motio
and passed 12-0 with Ken M
IDC MINUTES - 3/9/89
i1 agenda stress the risk of
upporting data with examples
hy loans failed and cletai1
imize those risks. Also. to
program and the need for
ion versus job creation decision)
dentia1ity. Ron Hoglund
the draft presented with the
by the IDC to the City
ng scheduled for Monday.
was seconded by Harvey Kendall
us abstaining.
5. CONSIDERATION TO ADOPT A R SOLUTION AUTHORIZING CO-SIGNATURES
ON ALL IDC DEPOSITS.
Don Smith made a motion ad
Lowell Schrupp. Ron Hoglun
co-signatures onall IDC fi
with the requirement of tw
transaction. The motion w
passed unanimously.
.
6. CONSIDERATION OF
OFFICERS FOR THE
pt the resolution authorizing
. and Shelly Johnson as eligible
ancia1 holdings on deposit
signatures for any financial
s seconded by Jim Kruger and
NAL ITEMS: 1989 GOALS AND MEMBERSHIPS/
RA. AND THE CHAMBER OF COMMERCE.
Chairperson Johnson infor ed the IDC that no action was needed
on this agenda item but for the IDC to view this information
as very valuable. The co ittee briefly discussed a date
for the joint meeting bet een the HRA. IDC. Planning Commission.
to be established EDA. City Council. and city staff with
potential dates of Monday. June 5 or 19. 1989. This to be
on the April agenda.
7. CONSIDERATION TO DISCUSS OTENTIAL INDUSTRIAL DEVELOPMENT
PROSPECTS.
Mr. O'Neill advised the c
company had presented the
covering their company's
on facilities expansion.
Graham at Business Develo
.
After City Council's reco
Construction Five Develop
the proposed installed st
border of Outlot A. Const
meet city parking space a
called Mr. LaFromboise to
and to set a time for ren
mmittee that an undisclosed
city with a very brief outline
ackground and current thinking
This was turned over to Deb
ment Services. Inc.
endation to ren~gotiate with
rs to reduce the length of
rm sewer along the easterly
uction Five Addition and still
d set back requirements. Koropchak
report on the Council's recommendation
gotiation and review site plans.
IDC MINUTES - 3/9/89
.
7. CONTINUED.
Mr. LaFromboise felt they had put in enough time on this
plan between the HRA and he City Council. The developers
are currently busy enough with other projects and do not
look to develop the Monti ello project this year or may
choose to consider anothe apartment project rather than
the proposed office/wareh use facilities and mini storage.
A given lead on the Unite Parcel Service expansion ended with
a' conversation with of icals stating they had no
plans for a relocation si e or expansion in this area
at this time.
8. OTHER BUSINESS.
TIle committee asked Mr. O'Neill about the progress on
the airport issue, Mr. 0' eill responded that time hasn't
permitted him to continue research or talks. However, the
last conversation with Ji Hallila indicated he was taking
the lead role. The IDC asked Jeff to report at the April
meeting.
9. ADJOURNMENT.
.
The IDe meeting adjourne at 8:30 AM.
GJ 0 .. ~~ \~ tS\ 0 ~ ...9. ~
Ollie Koropchak, IDC Executi e Secretary
.
IDC AGENDA - 4/20/89
9. CONSIDERATION OF EXTENDED REA PHONE SERVICES UPDATE.
.
A. REFERENCE AND BACKGRO
One of the IDC goals for 1987-88 was to research the
potentiality of Extended rea Service (EAS) to
Monticello. Ron Hoglund as named chairperson of the
subcommittee with Joy Swe son and Elaine Norin collecting
petition signatures. This petition indicated "an interest
only" which meant Montice 10 had a sufficient amount of
interested residents or b sinesses in the EAS, cost for
EAS was to be determined ater by pue and the affected
telephone comp,<mies'. J y and Elaine's time, effort,
and energy volunteered in collecting petition signatures
was excellent, unfortunat ly, duplication of signatures per
phone number, disconnecte phone numbers, and the unknown
of the number of 295 phon exchanges in Monticello resulted
in the local phone compan contesting the number of valid
signatures of the submitt d petition. This was validated
by the PUC and Monticello was informed it need only submit
the needed gap of signatu es. Requirements are 15% of the
total number phone exchan e signatures or 600 signatures
whichever is less. The a ditional signatures were not
submitted because of the ack of interest.
.
Recently in conversation
they indicated to me that
home sales in the Montice
EAS. They asked that thi
city staff and the city c
to consult the original 0
EAS. The recent newspape
interest.
In contacting Diane Wells
Joy Swenson had called he
she had the additional ne
requirements. She has n
at the time of this typin
required number of signat
joins the communities of
received after the origin
At present the PUC is eva
metro area, how to expand
may want to request City
Area Services. I will re
meeting.
B. SUPPORTING DATA.
ith three local real estate agents,
they felt 90-99% of their declined
10 area was due to the lack of
information be passed on to
uncil. The Mayor suggested
ganization supporting the
articles has generated resident's
at the PUC today, she indicated that
prior to my call and indicated
ded signatures to validate the
t responded to my telephone
If Joy has submitted the
res this would mean Monticello
ontrose and Mayer for petitions
1 16 community cutoff by the PUC.
uating the impact to the existing
etc. At some time, the IDC
ouncil endorsement of Extended
ort on Joy's progress at the IDC
Copy from the Monticello imes article.
.
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IDC AGENDA - 4/20/89
.
10. CONSIDERATION TO SET A D TE FOR THE JOINT COMMITTEE MEETING.
A. REFERENCE AND BACKGR UND.
At the March IDC meeting, the committee briefly had.a dicussion
to establish a date for he joint meeting between the
HRA, the EDA, the IDC, t e Planning Commission, the City
Council, and the city st ff. Potential dates were
Monday, June 5 or 19, 19 9. The IDC then tabled the
item for the April meeti g. The IDC may now wish to
establish that date.
.
.