IDC Agenda 12-17-1987
.
AGENDA
MONTICELLO INDUSTRIAL DEVELO MENT COMMITTEE MEETING
Thursday, December 17, 1987 - 7:00AM
City Hall
Members: Chairperson Harvey Kend II, Vice-President Shelly Johnson,
Bud Schrupp, Arve Grims 0, Rick Wolfsteller, Dale Lungwitz,
Don Smith, Jay Morrell, Ron Hoglund, Bruce Gagnelius,
Joel Winkelman and Ollie Koropchak.
Scheduled Guests: Public Works Director John Simola and Building/
Zoning Administrator Gary Anderson.
1. Call To Order.
2. Approval of the November 18, 1987 IDC Minutes.
3. Review and Discussion of the Comparative Start-Up Costs and
Water and Sewer Rates with City Staff members.
4. Election of 1988 IDC Officers: Chairperson, Vice-Chairperson, and
Treasurer.
5. Other Business.
.
6. Adjournment.
.
.
MINUTE
MONTICELLO INDUSTRIAL DEVELOPME T COMMITTEE LUNCHEON MEETING
Wednesday, November 18, 1987 - 12:00 Noon
Comfort Inn (Tree Lunge)
Members Present: President Harv y Kendall, Ron Hoglund, Don
Smith, Dale Lu gwitz, Joel Winkelman, Bud
Schrupp, and 0 lie Koropchak.
Members Absent: Shelly Johnson, Arve Grimsmo, Rick Wolfsteller,
Jay Morrell, a d Bruce Gagnelius.
Guest: Erik Fjerdingstad.
1. Call To Order.
President Harvey Kendall call d the IDC meeting to order at
12:30 P.M. following a lunch atered by Judy Kruse.
2.
A roval of the October IS, 1
Ron Hoglund made a motion to
minutes, seconded by Joel Win
Schrupp late to the meeting.
87 IDC Minutes.
pprove the October IS, 1987 IDC
elman and passed 5-0. Bud
Guest: Erik Fjerdingstad, Presid nt of NAWCO Minnesota, Inc.
Mr. Fjerdingstad reported to the committee that he was
well satisfied with the w rkmanship by Winkelman
Construction and pleased ith the cooperation from the
City. Bud Schlief was an excellent recommendation for
a construction manager an was most grateful to him.
Construction of the build"ng began the end of May, 1987
and was completed October, 1987. Production equipment
arriving from Germany the lans are for production to
begin the first quarter of next year. Mr. Fjerdingstad
addressed two concerns: 0 e, the added cost for the
required land fill and two, their landscaping cost were
over $20,000.00. Erik is ell pleased with Monticello
and the looks of their fac lity but questioned if all
startup businesses could a ford the landscaping? To
date NAWCO Minnesota, Inc. has hired a Vice-PreSident
of Sales, two foremen, and a Personnel Director.
The Vice-President and two foremen have received training
in Norway. Dale Lungwitz nquired about the possibility
of developing a network wi h Norway for other businesses
to locate here.
.
3. Review of Com arative Start-U Costs.
Koropchak handed out the summa y of start-up costs and water
and sewer rates from the respo se by the Cities of Buffalo,
Elk River, Litchfield, and St. Cloud. Koropchak had mailed
each city a letter asking them itO calulate the start-up
cost in their respective commu ities based on the assumptions
given. The IDC is concerned i Monticello's start-up costs
in 'comparison with other communities creates a negative image
to locate in Monticello.
.
.
3.
Continued.
The committee would like to h
and to be sure we are compari
Monticello rates hard-fast ru
A recommendation by Joel Wink
Rick Wolfsteller. Public Work
Building/Zoning Administrator
IDC prior to the next schedul
for the IDC to receive inform
if any recommendations need t
Council before they approve y
January. This recommendation
The intent of the meeting is
rate schedules and the ration
applies to start-up costs for
the City of Monticello's imag
or existing businesses to exp
is to set up the meeting and
handed out to IDC members not
IDC Minutes - 11/18/87
ve the Monticello rates retabulated
g apples to apples. Are the
es or can they be negotiable?
Iman was to invite Administrator
Director John Simola. and
Gary Anderson to meet with the
d IDC meeting allowing time
tion. discuss. and evaluate
be brought before the City
arly rate schedules in
was a consensus of the committee.
o discuss the rationale of the
Ie of the city ordinance as
industrial businesses. Is
one which encourages new
nd in Monticello? Koropchak
ail the supporting data as
in attendance at this meeting.
9. Adjournment.
Because the IDC meeting was r nning late. if was a consensus of
the IDC to carryover the rem ining agenda items until the
next meeting. The Novembe IDe meeting adjourned.
.
~ \~G\.b~~
Ollie Koropchak. Executive Secret
Monticello Industrial Development
.
.
IDC Agenda - 12/17/87
4. ELECTION OF 1988 IDC OFFICERS: CHAIRPERSON, VICE-CHAIRPERSON,
AND TREASURER.
REFERENCE AND BACKGROUND.
Having contacted the following individuals and upon their
approval, I recommend the fall wing names as nominees for
1988 IDC Officers: Chairperso - Shelly Johnson
Vice-Chair erson -
Treasurer Bud Schrupp
Nominations from the floor wil also be considered. Joel Winkelman
has agreed to remain on the ID , he began two years ago as the
Chamber of Commerce representa ive and remained on the committee
because of Chamber President S lly Martie's request. Joel brings
to the committee his expertise as an accountant. Although, Joel
is no longer a member of the C amber of Commerce Board of Directors,
the IDC may wish to consider Joel as a permanent replacement
for John Bondhus. Also, the co ittee may wish to keep up their
tradition of a Chamber represen ative by considering Dan Carlson,
1988 Chamber President, as a IDI member. Dan is willing to be
a representative of the Chamber. All parties contacted understand
final decision rest upon the ID .
.
.
MODERN QUIL TERS
c.
623 Washington Avenue So.
(612) 338- 987
November 23, 1987
Chamber of Commerce
or City Council
Monticello, MN. 55362
Gentlemen:
We are going to move our plant fr
lease is up on February 28th, 198
non-exist ant in our downtown loca
new 'Hi-Tech Corridor' of Minneap
burden.
Minneapolis, Minn. 5541 5
m downtown Minneapolis. Our
- reliable help is almost
ion - and since we are in the
lis, our rent is becoming a
.
We need about 20,000 square feet f manufacturing space and about
15,000 square feet of unheated at rage space. Our office needs
are minimal.
We have large machines that quilt
to 95 inches. We make furniture
pot holders and kitchen appliance
covers, garments of all kinds, hor
other items which include diaper b
rolls of fabric in widths up
oving pads; quilt for makers
overs, mattress pads, casket
e blankets, and a variety of
gs! travel bags, accessories,
of
etc.
We employ from 20 to 25 people and have been in business since 1950.
If you have an existing building t at may fit our needs and are
interested in having us in your to n, we would very much like to
hear from you.
Sincerely,
~ODERN QUI)TERS, IN:.
-/ r:--tf:-.i_/;l ~
Foster S. Merrill
President
.
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"~a/Qe City ob the COakotag"
C"ty o~ CWotefttoWVt
SOUTH DAKOTA 57201
October 23, 1987
INDUSTRIAL DEVELOPMENT DIRECTOR
DAVE WOLSKY
26 SOUTH BROADWAY
PHONE 605/886-6575
Dear Businessman,
Is your bottom line evaporating ery rapidly? We believe
that the business advantages tha South Dakota offers can
increase your profit margin constderably. There are some big
differences between Sioux Falls, south Dakota and Duluth,
Minnesota in taxes. The cost of doing business in watertown,
South Dakota is even better than Sioux Falls.
Here are some comparisons between Sioux Falls and Watertown:
Sioux Falls Watertown
Real estate tax on
a 5 million dollar $100,000 $ 92,600
. plant
Electric Power
39,600 KWH with a 1,706 1,396
demand of 192 KWH
Gas 4,000 CCF 1,489 1,244
Water 9,000 Cu. Ft. 63 59
We have a municipal power plant i
rates costing approximately 3 cen
present time. We think that you
very profitable place to do busin
we have a basic philosophy of mon
ought to be able to keep it. The
of state taxation in South Dakota
Watertown with electricity
s a kilowatt hour at the
ill find South Dakota a
ss. As our governor says,
y--If you earn it, you
following is a quick review
and Minnesota.
CORPORATE
TAX
SOUTH DAKOTA:
MINNESOTA:
$25,000
$25,000
6%
12%
.
Minnesota derives 5.9% of its rev nue from the corporate
income tax. This averages out to $72.29 per capita.
OVERALL STATE PER CAPITA TAXATION .
PER CAPITA
TAXATION RANK
South Dakota $ 517 50th
Minnesota $ 1,229 5th
PERSONAL INCOME TAX
.
South Dakota
None
Minnesota
$ 0 to
$ 876 to
$ 1,751 to
$ 3,501 to
$ 5,376 to
$ 7,001 to
$ 7,126 to
$ 8,876 to
$12,376 to
$14,001 to
$16,001 to
$21,501 to
$22,126 to
$25,501 to
$28,501 to
Over
$ 875
$ 1,750
$ 3,500
$ 5,375
$ 7,000
$ 7,125
$ 8,875
$12,375
$14,000
$16,000
$21,500
$22,125
$25,500
$28,500
$31,750
$31,750
UNEMPLOYMENT INSURANCE
1. 5%
2.0%
2.9%
4.8%
5.9%
6.1%
7.2%
8.3%
9.3%
10.0%
11. 0%
11.3%
12.3%
12.6%
13.7%
14.0%
.
South Dakota has one of the lowest unemployment rates in the
nation, so the impact on the unemployment insurance fund and
the demand for cost increases is the least here.
1985
Wage Base
South Dakota
$ 7,000
Minnesota
$10,300
Estimated 1985
Average Tax Rate
1. 4%
2.6%
.
.
WORKERS COM
According to the 1984 Alexander rant & Co. survey of states
business climates, the national eighted average workers
compensation rate for manufactur'ng classifications is $2.77
per $100 of payroll. South Dako a and Minnesota were quoted
as having the following rates:
South Dakota
Minnesota
$ 1. 54
$ 4.26
WAGE
The following figures are 1987 s
manufacturing wages compiled by
Statistics.
South Dakota
Minnesota
$ 7.56
$10.01
atewide average hourly
he Bureau of Labor
47th
14th
If you desire any additional inf rmation concerning
Watertown, South Dakota please c ntact me at the above
address.
Sincerely,
· ~:::r
Industrial
.
.
.
(Pop. 92,811)
$314,863
38,250
94,230
Q4t7,34~
(Pop. 81,843)
$100,000
none
19,500
6119,~
The Small Business Development Center of St. Paul, Minnesota, projected these tax fJgl.1reS for a mythical company with
100 employees, operating out of a $5 million plant, generating bIe profits of $fi.XJ,lXXJ.
.
What you see here a e just three of the
reasons people all OV r this country
- including the prest gious Chicago-
based accounting fir of Grant Thornton
- find South Dakota' business climate
incomparable. Other easons include:
· No personal ineo e tax
· No personal pro erty tax
· No business inve tory tax
· No business fran hise tax
· No unitary tax
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Monti ello
Industrial Develop ent Committee
250 East 8 oadway
Monticello, Minn sota 55362
Phone (612) 95-2711
.
November 16, 1987
Dear IDC Member:
Our meeting this month is sch du1ed for Wednesday, November 18,
1987 at the Comfort Inn, 12:0 Noon. Because Representative
Bauer1y was the only 1egis1at r who responded positively,
Senator Adkins, Senator Davis, and Representative McEachern
having other previous committ ents, I cancelled the legislative
discussions planned for this eeting. I contacted Cargill's
corporate person in charge of the Monticello plant, John O'Carroll,
Director of Sales and Marketi g. Mr. O'Carroll is unable to
attend this meeting; however, very receptive to meeting with
the IDe. I have since contac Erik Fjerdingstad, President
of NAWCO Minnesota, Inc. to j us. At this time, I have not
received a response. Judy Kr is scheduled to cater our
meal.
.
Enclosed is a copy of the age da, supporting data will be presented
at the meeting.
See you" Wednesday.
Sincerely,
QL~~ "VtCl\. o~ ..Q.~
Ollie Koropchak
IDC Secretary
Enclosures
.