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IDC Agenda 09-12-1985 . AGEN A Industrial Develo ment Committee September 12, 19,5 - 7:00 A.M. 1. Call to Order. 2. Minutes. 3. Industry Appreciation Day Re-c p. 4. Consideration of Authorizing t e Hiring of a Staff Person. 5. Other Business. 6. Adjourn. . . . MINUTE Monticello Industrial De elopment Committee Thursday, August 22, 985 - 7:00 A.M. Monticello C"ty Hall Members Present: Tom Eidem, Arve G imsmo, Ron Hoglund, Dale Lungwitz, Chair J y Morrell, Bud Schrupp, Don Smith and All n Pelvit. Chair Jay Morrell opened the meetin 7-18-85 minutes. Arve Grimsmo move with Tom Eidem seconding the motion asking for approval of to accept said minutes Motion passed 8 - O. Chair Morrell asked to have Mike La atka, IX! representative, make his presentation first. This ould allow him to return to work if he so chose. Mr. LaPatk began his presentation by explaining what has taken place"n IXI corporate structure during the last 24 months. Mike ex lained 1984's lay-off and how they have strengthened thei management team. He talked about IXI diversifying into reas such as the cable IDanufacturing/assembly and sales, a well as the property management field. he also spoke ab ut lXI's future expansion plans. . The next item on the agenda dealt w"th the annual Business & Industry Appreciation Day event a the County Club. Allen stated that everything was set. Bu Schrupp and Gary Wieber would be meeting to work out the ga es and other contests, etc. Chair Morrell asked Allen to ontact all committee members and request them to set aside the e tire afternoon and evening for this event. Members should be t the Country Club by 1:30 - 2:00 P.M. Tom Eidem will ha e City Staff for registration etc., and will have the VCR present tion available for viewing. Tom Eidem moved to accept Allen Pel it's letter of resignation as Monticello's Director of Economi Development. Dale Lungwitz seconded the motion and said motion passed 8 - O. There being no further business, th -.---3---. --.' -_. 00' -- - '\ ~- <~ , _ ,__ '.., i , ~~-~.-- ..........., .... Allen L. Pelvit Director of Economic Development . meeting was adjourned. .-...........- -_..,~ -~... . MINU ES Monticello Industrial evelopment Committee Thursday, July 18, 1985 - 7:00 A.M. Monticello City Hall Members Present: Tom Eidem, Dale Harvey Kendall, Alex Pelvit. Chair Jay Morrell opened the meeti 6-20-85 minutes. Tom moved to ado by Bud Schrupp, and passed 7-0. ungwitz, Chair Jay Morrell, ud Schrupp, Don Smith, and asking for approval of the said minutes, was seconded The first item on the agenda was t of the annual banquet. Jay Morrell asked if Allen had rec of the remaining $675.40. Allen stated the final n just mailed and he expected at least $375 to be recei ed, as they attended the banquet, but, had not paid yet. In reviewin the net profit from this year's banquet with 1984'S~ Allen noted t at we made approximately $450 more this year. . Chair Morrell stated that letters w thanking them for their donations a Business Appreciation Day. He also work hard to promote the banquet a the Chamber, Rotary, Lions, etc. The second item on the agenda dealt Appreciation Day. It was the Commi the date to the first Wednesday in the consensus of the committee to h event at the Country Club. It was be held the first week in September in September usually had rain. An activities followed by a casual pic Last year's luncheon was not succes went back to work and did not make year the emphasis should be placed The committee directed Allen to set Club for the afternoon/evening of S Tom Eidem suggested that something that do not golf. Examples given w card games, backgamon, etc. The Co Chair the outside activities, etc. is that if you play golf, great; bu will be held. . re sent to all banquet contributors d reminding them of Fall stated that all of us should other meetings, such as with the fall Business tee's consensus to change eptember (4th). It was also ve a casual picnic style elt that the event should Because the second week fternoon of golf and other ic in the evening was preferred. ful in that most non-golfers t to the golf course. This n casualness and participation. up the event at the Country ptember 4th. ould be planned for those re: lawn jarts, croquet, ittee suggested Gary Wieber The effect we should be conveying if you don't, other activities -1- _..__.._......L . The Committee suggested we cont Country Club and get estimates bring the results back to the n Bruce Gagnelius be in charge of the lady that caters at the 2-3 picnic style meals and xt meeting. It was suggested the bar. Jay suggested Allen work on a 1 tter and a ticket for the event. Perhaps they could number the t"ckets and give away donated prizes. Promotional prizes such ~~s, Bo dhus tools, hats, belt buckles, T-shirts, etc., could be used a prizes. We could also have prizes for golf, jarts, putting contests, etc. Invited guests should include a annual banquet, the guest speak Bob Stern, Council, Senator Bet McEachern, and Eldon Brustuen. tickets should go out by the 15 should get notices to the Times times. A special letter should special guests: 1 those that contributed to the r, all p~ospects, Franklin Denn, y Adkins. Representative Bob The letters/invitations with h of AU.gust at the latest. We early so they can run several be written to the prospect and/or . Item five pertained to the revi w of the developers survey. Chair Morrell suggested this be held over to another meeting when we have a majority of the ommittee present. The Committee agreed and complimented Allen 0 the preparation of results. Allen stated that the questions were omitted by mistake and he did not want Karen to retype th surveys. He suggested that original survey forms will be g"ven to each member at the next meeting. Chair Morrell asked Allen to up ate the Committee on how we lost out to Hastings when Representa ives from STP told us they would choose Monticello. Allen then tarted by referring to the $100,000 grant for a foreign manufacturi g facility. The original grant which we applied for in January of 1985 went to Hallock because they had a committment in hand. In March of 1985, Hallock lost the project to Crookston; and b cause Crookston was a Home Rule Charter City, the grant became vailable to all statutory. cities. Hastings was a Home Rule Charte City and not eligible. We felt we had an advantage by pushing he matter. The State of Minnesota Department of Energy and Econom"c Development extended the May deadline to June 24th to allow astings to apply and have the statute language changed. This then made all cities eligible. As it turned out, STP was force to make a decision and chose Hastings. However, their commi tment did not get to Dayton's office in time and the grant wa awarded to Hallock. After finding out this decision, Allen called STP and asked if there was still a chance to make a deal. STP s id that because both cities could not obtain the grant, they woul now accept new proposals not utilizing the $100,000 grant. t this time we are considering having the Monticello BRA purch se the Clow Building and lease it back to the STP "Greenhouse". . -2 . ~len stated that because Norway s almost completly shut down for the month of July, we have pI nty of time to prepare the new proposal. ~len stated that in his discussi led them to pick Hastings or what improve our presentations for the it was unfortunate that they were decision on short notice. They a that the first greenhouse was cho asked if I understood that statem thought that both cities would ge we would discuss this more at a 1 ns with STP, he asked what we did wrong, in order to future. STP stated that forced to make such a hasty so said that it was unfortunate en for Hastings. They then nt. When I stated that I some projects, they said ter date. Tom Eidem stated that it was not nown how many principals were involved on the STP Board, b t the two that visited Monticello voted for Monticello and were out oted. A discussion followed as to why they made their decisio s when we were told Monticello was the place to do the "Greenhou e" project. Tom explained how Dayton'S office had not been cting on our behalf, but Hastings. FOLitical manuevering c me into play; and when we made waves at the Capital, Dayton'S office became quite upset with us. Our local Politicians b came involved and alot of activity directed toward Dayton'S office took place. . Dale Lungwitz asked where we are Tom Eidem explained that the proj 50,000 sq. ft. to 30,000 sq. ft. new jobs. This was due to the Sn not wanting to participate at thi the Claw Building and leasing it ith the project at this time. ct has been down scaled from nd from 60-90 jobs to 40-50 w Plow-Truck Body Company time. The HRA is considering ack to them. Tom Eidem stated that the City sh spend City money and send Arve Grimsmo to Norway for 4 5 days to meet with the STP group. This would be beneficial on Clearing up alot of questions and perhaps sell the project. Da e asked if the Committee could perhaps pay for the trip an thus make the trip look more legitimate if the Industrial Development Committee did it versus the City. Tom stated t at he, as well as Don Smith and others, felt it a legitimate ity expense and should do it to either make a deal happen 0 squelch it and move on to something else. . Jay Morrell was not sure that the the expense of sending the Mayor took place debating this; but the pursue it at one of the next Coun and then act on it. At the same should be given to the public so questions at the coffee shop, our Members can answer them satisfact he has discussed, both with Tom a the potential of this project and expense would be justified to get -3- chance for success justified o Norway. A long discussion consensus was to have Tom il meetings, get their approval, ime, all available information hat when the public raises Committee Members/Council rily. Don Smith stated that d Allen, how they perceive feels confident that the this project. . Both Tom and Allen stated that was viable and ultimately would the "Greenhouse" participants I own buildings in Monticello, an he isn't that concerned with th some, but he can live with it i consensus of the Committee was Mayor to Norway. Chair Morrell Arve work out the details and r with the results. Tom suggeste then a special meeting would no hey really believe the project be beneficial to the City when ave the nest, construct their create more jobs. Tom stated public flack. It concerns him the trip is successful. The o pursue the City sending the suggested that Tom, Allen, and port back to the August meeting that if the Council approved, be warranted. Allen noted that time was runni g short, and that both he and Tom had another meeting to atte d. He also stated that he had some other items to discuss wit the Committee. . Chair Morrell stated that the C him that this was worth the ris the Mayor to Norway, the Commit on the background at a special special meeting was justified f the Committee lets its Sub-comm for video taping, etc. Morrell is to have enough facts availab He also felt members of the Co Council meeting when it had not convinced involved and that prior to sending ee members should be briefed eeting. Don Smith asked if a r a $2,000 City expenditure when ttees handle $2,000 expenditures stated that his only interest 'e to dispell any rumors, etc. ittee should be present at the nted. The next item covered the delet'on of Wayne Bidwell from the IDC. A motion to drop Wayne fr m the membership was made by Bud Schrupp, seconded by Dale L gwitz, and passed 0-7. In other business, Allen report d that Gus and Gary LaFromboise have committed to the developme t of their proposed 25,000 sq. ft. Office/warehouse complex. ity staff and the principals will be meeting to complete the etails soon. Allen then suggested that the Committee consider erecting a sign with Industrial Development as a theme, perhaps on their pro erty. Dale Lungwitz suggested constructing such a sign on Lot #6, Block 1, of Oakwood Industrial Park. This would eliminate nego iating with the LaFrombois's. Allen said that he did not parti ularly recommend the LaFromboise site for the sign, but merely to consider constructing such a sign to let people know we are i dustrially active. It was the consensus of the Committee t check this out and return with more information. . Allen passed out a prospect shee in Iowa. He stated that he chan to read that of Monticello and w thoughts on it as a possible mea one of the motels, and they indi of their business is salesman an would be knOWledgeable to inform plans. It was the Committee's c for use in our motels. that is used at hotels/motels ed the names of the city, etc., nted to get the Committee's s of obtaining leads. He contacted ated that a large percentage or professional people who tion on expansion/relocation nsensus to consider it strongly -4 . ~len then reported that he has and that they are getting some they make a decision, they will to the Fall Business Appreciati Committee informed. contacted the Farm Bureau again ffers on their property. When let us know. They will be invited n Day, and Allen will keep the Steve Beddor wrote Allen a lett r stating that rumors were spreading that the Beddor's never gave us a chance. He also insinuated that because they used a $2.00/ q. ft. amount for the lease of a 100,000 sq. ft. building in M nneapolis, we felt they used that as an excuse not to accept Monticello's proposal. Allen stated that after meeting with arry Bjorklund, owner of the building, he now understands th philosophy involved in corporate take overs and did not want to e intimidated by them. As a result, a letter was written to Steve Beddor in response to his letter. our. Committee and City Staff did their best in making what area contractors considere a very good offer. It was unfortunate that we could not compete. All n stated that rumors will always surface, but it would be so muc more personable to pick up the phone and discuss it. . ~len reported that he has met w"th Key Tool, and they are still considering locating their produ tion/manufacturing facilities in Monticello. They have regain d some of the business they lost last fall and, in fact, bro dened their account base. The hesitancy at this time is in fin nCing a new debt and causing a crunch in their cash flow. Af er discussing other options such as renting/leasing with opt"on to buy the Best-in-Webb building, having the HRA purchase the buil ing and then lease it back with option to buy or haVing a local evelopment company construct a building and lease it back wit a 5-10 year option to buy. In relocating to a new building, the moving and installation of the large machines is extreme y expensive and they only want to do that once. The last item discussed concerne lXI's progress. Dale Lungwitz asked about the possibility of t eir constructing 1-2 buildings this year. Allen reported on th he made to IXI earlier this spring. He explained the p oposal as assuming they erect 2-3 buildings this year and 4-5 'n 1986 to complete their plans. Allen presented this to the HRA nd they feel comfortable with the proposal. IXI has in recent months involved itself with property development, especially its own properties. Allen further explained that IXI has been and ill continue to be their own general contractor. They have l"sted in the May 17th issue of the Dodge Report a request for bids on rpoposed consturction for 1985/1986. The consturction as planned to begin in September of 1985. Total square footage was listed as 70,000 sq. ft. . Dale Lungwitz was a little conce any construction started on this that the computer industry was fl could still be in the expansion m is in a downhill slide. ed that there has not been et. Jay Morrell too, was concerned t and did not see how they de when the computer industry -5- . A1~en stated that perhaps the gust meeting wou~d be a good time to meet over ~unch/breakf st. etc. and discuss their plans. A1~en said he wil~ attempt to set up such a meeting. There being no": further business the meeting was adjourned. ~~ A1~en L. Pelvit Director of Economic Developmet . . -6- Industria~ Deve~opm nt Committee Agenda - 9/12/85 of a Staff Person. (T.E.) . 4. Consideration of Authorizin A. REFERENCE AND BACKGROUND. With the exit of A~~en Pe~vit the Housing and Redeve~opment Autho staff, un~ess fi~~ed in by existing of the committee indicated to me th the merits of refil~ing the positio This seems the appropriate time to ty, the committee, and ity are again without City staff. Severa~ members t they wish to debate as it was estab~ished. ndertake that discussion. On Thursday, September 5, 1985, Authority met and after ~engthy requesting the continuance of a sha City and the Industrial Deve~opment went on to authorize the chair of t with the chair of the IDC and the M the shared package and review the revisions. Housing and Redeve~opment ussion adopted a motion ed staff member with the Committee. Their motion e HRA, Gary Wieber, meet yor of the City to formu~ate b description for needed . From a City staff perspective, I su port the continuation, with perhaps some redefinition, of he fu~~-time position. Whi~e A~ came in re~ative~y inexperienced and took approximate~y a year and a ha~f to become acclimated to the position, the ~ast six months saw a genuine increase in activity and prospect bui~ding. Concurrent~y, the City as begun another period of major activity, considering the roposed downtown rehabi~itation, annexation, economic growth of cou se, housing starts and new subdivisions. The revised zon"ng ordinance, whi~e it takes a major share of time for no wi~~ not ~ast forever. I am of the opinion, however, that if I were to attempt to assume economic deve~opment duties and HRA duties, in some areas my responsibi~ities wou~d no be fu~fi~~ed as comp~etely as they ought to be. I am aware that some persons have ad discussions concerning the possibi~ity of hiring a consu~ ing firm to become invo~ved with economic deve~opment prospect. Whi~e I have not used an economic deve~opment consu~tant in the past, my exposure to them provides me with some back round on their ~imitations. I would ~ike the opportunity to pr vide you with the background I have on some firms, and exp~ain hy I do not think they wou~d be as beneficia~ as a staff ember. . As you reca~~, we hired A~~en on t e CETA program with virtua~~y no experience. Whi~e he was in fa t ~earning, and his performance in the beginning was criticized by some I do be~ieve that his efforts have generated substan ia~ more activity than we had prior to his arriva~. This then raises a question with respect to rep~acement. C~ea ~y, it wou~d not be beneficia~ to ~ook to CETA again and a~~ow ou current status to s~ide backwards to a beginning ~eve~ aga'"n. If it is the decision to search for a fu~~-time shared s aff person, the experience factor and salary wi~~ be, critica when defining the position. There are no a~ternative presented at this time. r staff recommendations Industrial Develop ent Committee Agenda - 9/12/85 . D. SUPPORTING DATA. A copy of the job description orig nally adopted. . . INDUSTRIAL DEVELOPMENT COMMITTEE . POSITION TITLE: Director of Eccnomic Develop ~t ACCOUNTABLE TO: City Administrator ------------------------------------------------ ------------------------------- PRIMARY RESPONSIBILITY: This position is responsible for coordinati ~eminding members when nearing due dates. It is ing a suggested Annual Plan for Committee review soliciting industrial prospects and supplying th Monticello, and when possible, arranging a meeti ment Committee. Additional responsibilities inc secretary, preparing financial statements, chec cata and preparing reports for the Committee. KEY RESULTS AREAS: g all Committee functions and also responsible for develop- and change. Duties include m with information on g with the prospect Develop- ude functioning as meeting ook management, collecting Solicit Industrial and commercial Prospects - Locating prospects - Prompt follow-up _ Keeping Committee involved and informed Persuading prospects to locate here ." Provide technical assistance and guidance to developers from implementation through start-up (as requeste ) Coordinating Committee Functions _ Keeping all members aware of project progres - Reminding members of due dates - Progress on planned projects _ OVersee successful implementation of Conunitt e event:;; Yearly Planning preparation _ Completeness of proposed plans - Neat, clearly written plans - suggestions to improve plans - Timeliness of plan completion Budgeting and Financial Assistance - Staying within budget guidelines - Accurate, complete financial statements - Checkbook monitoring - paying needed bills on time Meeting Secretary - Assistance in preparing agenda - Complete, clearly written minutes Clarification where necessary on Committee . ecisions Industrial Development Committee position Title June 27, 1983 Page #2 . Data Collection, Research and Report Preparation - Usefulness of Research Data - Accuracy of methods - Report readability City Government _ Executive Secretary of Monticello Housing & Redevelopment Authority * Record proceedings * Agenda preparation assistance * Data collection, research Economic development financial packaging Grants Administration (when applicable) Chamber of Commerce - Data collection, research Membership services * Technical assistance on promotion events * Clearinghouse for significant information * Fundraising, membership evaluations Legislative initiative (Lobbying) Liason between Chamber, City, and General Public . .