IDC Agenda 08-22-1985
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AGEN
Monticello Industrial D
ThurSday, August 22
City H
1. Call to Order.
velopment Committee
1985 - 7:00 a.m.
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2. Approval of the July 18, 1985, Minutes.
3. update on the September 4, 198 , Business & Industry Appreciation
Day Event.
4. Presentation by IXI.
5. Other Business.
6. Adjournment.
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MIN TES
Montice~~o Industria~ Deve~opment Committee
Thursday. July 18. 1985 - 7:00 A.M.
Montice~~ City Ha~l
Members Present: Tom Eidem. Da~e Lungwitz. Chair Jay Morrell.
Harvey Kenda~~. Bud Schrupp. Don Smith. and
Alex Pelvit.
Chair Jay Morre~~ opened the meet
6-20-85 minutes. Tom moved to ad
by Bud Schrupp. and passed 7-0.
The first item on the agenda was
Jay Morre~~ asked if A~~en had re
$675.40. Al~en stated the fina~
expected at least $375 to be rece
but. had not paid yet. In review
banquet with 1984's~ ~~en noted
$450 more this year.
asking for approva~ of the
said minutes. was seconded
he review of the annual banquet.
eived any of the remaining
otice was just mai~ed and he
ved. as they attended the banquet.
ng the net profit from this year's
that we made approximate~y
Chair Morre~~ stated that ~etters were sent to a~~ banquet contributors
thanking them for their donations and reminding them of Fa~~
Business Appreciation Day. He a~ 0 stated that a~~ of us shou~d
work hard to promote the banquet at other meetings. such as
the Chamber. Rotary. Lions. etc.
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The second item on the agenda dea t with the fa~l Business
Appreciation Day. It was the Co ittee's consensus to change
the date to the first Wednesday i September (4th). It was a~so
the consensus of the committee to have a casua~ picnic sty~e
event at the Country Club. It wa fe~t that the event shou~d
be he~d the first week in Septemb Because the second week
in September usua~~y had rain. afternoon of golf and other
activities followed by a casual p.cnic in the evening was preferred.
Last year's luncheon was not succ
went back to work and did not mak
year the emphasis should be place
The committee directed Allen to s
Club for the afternoon/evening of
ssful in that most non-golfers
it to the golf course. This
on casualness and participation.
t up the event at the Country
September 4th.
Tom Eidem suggested that somethin could be planned for those
that do not gOlf. Examp~es given ~awn jarts. croquet.
card games. backgamon. etc. The ommittee suggested Gary Wieber
Chair the outside activities. etc. The effect we should be conveying
is that if you play golf. great; ut if you don't. other activities
will be held.
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The Committee suggested we con
Country Club and get estimates
bring the results back to the
Bruce Gagnelius be in charge 0
Jay suggested Allen work on a
perhaps they could number the
Promotional prizes such ~as. B
T-Shirts. etc.. could be used
prizes for golf. jarts. puttin
Invited guests should include
annual banquet. the guest spea
Bob Stern. council. Senator Be
McEachern. and Eldon Brustuen.
tickets should go out by the 1
should get notices to the Time
times. A special letter shoul
special guests.
Item five pertained to the
Chair Morrell suggested
when we have a majority
agreed and complimented Allen
Allen stated that the question
did not want Karen to retype t
original survey forms will be
meeting.
act the lady that caters at the
for 2-3 picnic style meals and
ext meeting. It was suggested
the bar.
etter and a ticket for the event.
ickets and give away donated prizes.
ndhus tools. hats. belt buckles.
s prizes. We could also have
contests. etc.
11 those that contributed to the
er. all p~ospects. Franklin Denn.
ty Adkins. Representative Bob
The letters/invitations with
th of August at the latest. We
early so they can run several
be written to the prospect and/or
ew of the developers survey.
held over to another meeting
Committee present. The Committee
n the preparation of results.
were omitted by mistake and he
e surveys. He suggested that
iven to each member at the next
Chair Morrell asked Allen to u date the Committee on how we lost
out to Hastings when Represent tives from STP told us they would
choose Monticello. Allen then started by referring to the $100.000
grant for a foreign manufactur ng facility. The original grant
which we applied for in Janua of 1985 went to Hallock because
they had a committment in hand In March of 1985. Hallock lost
the project to Crookston; and ecause Crookston was a Home Rule
Charter City. the grant became available to all statutory~ cities.
Hastings was a Home Rule Chart r City and not eligible. We felt
we had an advantage by pushing the matter. The State of Minnesota
Department of Energy and Econo ic Development extended the May
deadline to June 24th to allow Hastings to apply and have the
statute language changed. Thi then made all cities eligible.
As it turned out. STP was forc d to make a decision and chose
Hastings. However. their comm ttment did not get to Dayton's
office in time and the grant w s awarded to Hallock. After finding
out this decision. Allen calle STP and asked if there was still
a chance to make a deal. STP aid that because both cities could
not obtain the grant. they wou d now accept new proposals not
utilizing the $100.000 grant. At this time we are considering
having the Monticello HRA purc ase the Clow Building and lease
it back to the STP "Greenhouse'.
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Allen stated that because Norway "s almost completly shut down
for the month of July, we have pl nty of time to prepare the
new proposal.
Allen 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, t the two that visited Monticello
voted for Monticello and were out oted. A discussion followed
as to why they made their decisi s when we were told Monticello
was the place to do the "Greenho se" project. Tom explained
how Dayton's office had not been acting on our behalf, but
Hastings. p~itical manuevering came into play; and when we
made waves at the Capital, Day to 's office became quite upset
with us. Our local Politicians ecame involved and alot of
activity directed toward Dayton' office took place.
Dale Lungwitz asked where we are with the project at this time.
Tom Eidem explained that the project has been down scaled from
50,000 sq. ft. to 30,000 sq. ft. and from 60-90 jobs to 40-50
new jobs. This was due to the S ow Plow-Truck Body Company
not wanting to participate at th"s time. The HRA is considering
the Clow Building and leasing it back to them.
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Tom Eidem stated that the City s
send Arve Grimsmo to Norway for
group. This would be beneficial
and perhaps sell the project. D
could perhaps pay for the trip a
more legitimate if the Industria
it versus the City. Tom stated
and others, felt it a legitimate
it to either make a deal happen
something else.
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Jay Morrell was not sure that th
the expense of sending the Mayor
took place debating this; but th
pursue it at one of the next Co
and then act on it. At the same
should be given to the public so
questions at the coffee shop, 0
Members can answer them satisfac
he has discussed, both with Tom
the potential of this project an
expense would be justified to ge
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ould spend City money and
-5 days to meet with the STP
in clearing up alot of questions
le asked if the Committee
d thus make the trip look
Development Committee did
hat he, as well as Don Smith
City expense and should do
r squelch it and move on to
chance for success justified
to Norway. A long discussion
consensus was to have Tom
cil meetings, get their approval,
time, all available information
that when the public raises
Committee Members/Council
orily. Don Smith stated that
nd Allen, how they perceive
feels confident that the
this project.
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Both Tom and Allen stated tha
was viable and ultimately wou
the "Greenhouse" participants
own buildings in Monticello,
he isn't that concerned with
some, but he can live with it
consensus of the Committee wa
Mayor to Norway. Chair Morre
Arve work out the details and
with the results. Tom sugges
then a special meeting would
they really believe the project
d be beneficial to the City when
leave the nest, construct their
nd create more jobs. Tom stated
he public flack. It concerns him
if the trip is successful. The
to pursue the City sending the
1 suggested that Tom, Allen, and
report back to the August meeting
ed that if the Council approved,
ot be warranted.
Allen noted that time was run ing short, and that both he and
Tom had another meeting to at end. He also stated that he had
some other items to discuss w'th the Committee.
Chair Morrell stated that the Committee as a whole had not convinced
him that this was worth the r'sk involved and that prior to sending
the Mayor to Norway, the Comm'ttee members should be briefed
on the background at a specia meeting. Don Smith asked if a
special meeting was justified for a $2,000 City expenditure when
the Committee lets its Sub-co ittees handle $2,000 expenditures
for video taping, etc. Morre 1 stated that his only interest
is to have enough facts avail ble to dispell any rumors, etc.
He also felt members of the C mmittee should be present at the
Council meeting when it is pr sented.
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The next item covered the del tion of Wayne Bidwell from the
IDC. A motion to drop Wayne rom the membership was made by
Bud Schrupp, seconded by Dale Lungwitz, and passed 0-7.
In other business, Allen repo ted that Gus and Gary LaFromboise
have committed to the develop ent of their proposed 25,000 sq.
ft. office/warehouse complex. City staff and the principals
will be meeting to complete t,e details soon. Allen then suggested
that the Committee consider e ecting a sign with Industrial Development
as a theme, perhaps on their roperty. Dale Lungwitz suggested
constructing such a sign on L t #6, Block 1, of Oakwood Industrial
Park. This would eliminate n gotiating with the LaFromhois's.
Allen said that he did not pa ticularly recommend the LaFromboise
site for the sign, but merely to consider constructing such a
sign to let people know we ar industrially active. It was
the consensus of the Committe to check this out and return with
more information.
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Allen passed out a prospect s
in Iowa. He stated that he c
to read that of Monticello an
thoughts on it as a possible
one of the motels, and they i
of their business is salesman
would be knowledgeable to inf
plans. It was the Committee'
for use in our motels.
eet that is used at hotels/motels
anged the names of the city, etc.,
wanted to get the Committee's
eans of obtaining leads. He contacted
dicated that a large percentage
and/or professional people who
rmation on expansion/relocation
consensus to consider it strongly
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A11en then reported that he h
and that they are getting som
they make a decision, they wi
to the Fall Business Apprecia
Committee informed.
s contacted the Farm Bureau again
offers on their property. When
1 let us know. They will be invited
ion Day, and Allen will keep the
Steve Beddor wrote Allen a letter stating that rumors were spreading
that the Beddor's never gave us a chance. He also insinuated
that because they used a $2.00 sq. ft. amount for the lease of
a 100,000 sq. ft. building in inneapolis, we felt they used
that as an excuse not to accept Monticello's proposal. Allen
stated that after meeting with Larry Bjorklund, owner of the
building, he now understands t. e philosophy involved in corporate
take overs and did not want to be intimidated by them. As a
result, a letter was written t Steve Beddor in response to his
letter. our. Committee and Cit Staff did their best in making
what area contractors consider d a very good offer. It was unfortunate
that we could not compete. Al en stated that rumors will always
surface, but it would be so rou h more personable to pick up the
phone and discuss it.
A1len reported that he has met with Key Tool, and they are still
conSidering locating their pro uction/manufacturing facilities
in Monticello. They have rega'ned some of the business they
lost last fall and, in fact, b oadened their account base. The
hesitancy at this time is in f'nancing a new debt and causing
a crunch in their cash flow. fter discussing other options
such as renting/leasing with 0 tion to buy the Best-in-Webb building,
having the HRA purchase the bu lding and then lease it back with
option to buy or having a loca development company construct
a building and lease it back w th a 5-10 year option to buy.
In relocating to a new buildin , the moving and installation
of the large machines is extre e1y expensive and they only want
to do that once.
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The last item discussed concer
asked about the possibility of
this year. Allen reported on
this spring. He explained the
2-3 buildings this year and 4-
A11en presented this to the HR
the proposal. IXI has in rece
property development, especial
explained that IXI has been an
general contractor. They have
the Dodge Report a request for
for 1985/1986. The consturcti
of 1985. Total square footage
ed lXI's progress. Dale Lungwitz
their constructing 1-2 buildings
he proposal he made to IXI earlier
proposal as assuming they erect
in 1986 to complete their plans.
and they feel comfortable with
t months involved itself with
y its own properties. Allen further
will continue to be their own
listed in the May 17th issue of
bids on rpoposed consturction
n was planned to begin in September
was listed as 70,000 sq. ft.
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Dale Lungwitz was a little con erned that there has not been
any construction started on th's yet. Jay Morrell too, was concerned
that the computer industry was flat and did not see how they
could still be in the expansio mode when the computer industry
is in a downhill slide.
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Allen stated that perhaps the
time to meet over lunch/brea
Allen said he will attempt to
There being no-'~ further
August meeting would be a good
ast. etc. and discuss their plans.
set up such a meeting.
meeting was adjourned.
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Allen L. Pelvit
Director of Economic Developm nt
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Industrial Develop ent Committee Agenda - 8/22/85
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3. Update on the September 4, 1985 Bu iness and Industry Ap reciation
Day Event. (A.P.)
A. REFERENCE AND BACKGROUND
Letters and tickets have been sent to all Banquet Contributors,
as well as those sent to special g ests and prospects. Personal
contacts will also be made prior t the event to encourage
attendance. The country Club has een reserved for September
4th with the caterer preparing the picnic lunch. GOlfing
privileges will begin at 1:30 p.m., with the social hour at
5:00 p.m. and the picnic lunch at :00 p.m. Lunch will consist
of POlish sausage, bratwurst, pota 0 salad, baked beans, corn
on the cob, served with rolls, cof ee/milk and desert. Cost
of the lunch will be $5.00/plate. Activities will be arranged
by Gary Wieber and Bud Schrupp. R freshments are being arranged
with Bruce Gagnelius. At your dir ction, promotional items
have been collected from various M nticello Businesses to
be given as prizes. More informat'on on this will be given
at the meeting.
NO alternatives or recommendations are needed.
4. Presentation by IXI. (A.P.)
A. REFERENCE AND BACKGROUND.
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As you recall, the committee had s
Tom Grue (Facilities Manager). Tn
to expand in 1985 and in 1986. Wh
the 7/18/85 meeting, there was con
industry was slumping and cutting
expansion plans.
I have arranged for Mike LaPalka (
to attend this meeting to discuss
you. This discussion should clear
about their expansion plans.
NO action or recommendation necess ry.
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me reservations about lXI's
result was that IXI planned
n this was mentioned at
ern that when the computer
ack, IXI was talking about
roject Manager at IXI)
Xl's expansion plans with
up some of the uncertainty