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IDC Agenda 09-24-1987 . AGENDA MONTICELLO INDUSTRIAL DEVE Thursday, September City Hal Members: President Kendall, S Arve Grimsmo, Rick W Lungwitz, Bruce Gagn Joel Winkelman, and 1. Call To Order. OPMENT COMMITTEE 4, 1987 - 7:00AM e11y Johnson, Bud Schrupp, 1fste11er, Jay Morrell, Dale 1ius, Ron Hoglund, Don Smith, 11ie Koropchak. 2. Approval of the August 20, 1987 IDC Minutes. 3. Consideration of Comparab1 Up Front City Charges for Commerica1/Industria1 Deve opment Projects. 4. Consideration of Comparab1 Estimated Market Values. 5. Consideration of 1988 IDC anquet Speaker, Charlie Herrmann. 6. Consideration of Plans for the IDC November Meeting. 7. Reports: Beverage Process"ng Company Extended Area Me ro Service Joint Airport Co ission Monticello Ford roperty . 8. Other Business. 9. Adj ournment . . . MINUTES MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE Thursday, August 20 1987 - 7:00AM City Hall Members Present: President Hervey Kendall, Shelly Johnson, Arve Grimsmc, Rick Wolfsteller, Jay Morrell, Dale Lungwi z, Ron Hoglund, Don Smith, Joel Winkelman, cnd Ollie Koropchak. Members Absent: Bruce Gagnel us and Bud Schrupp. 1. CALL TO ORDER. President Kendall called he IDC meeting to order at 7:07AM. 2. APPROVAL OF THE JULY 14, 987 IDC MINUTES. Ron Hoglund made a motion to approve the July 14, 1987 IDC minutes, seconded by Don imith. Minutes stand approved. 3. REVIEW OF THE IDC FINANCIl L STATEMENTS. The IDC reviewed the finarcial statements without comment. 4. INTRODUCTION AND WELCOME (F RICK WOLFSTELLER. CITY ADMINISTRATOR, AS A MEMBER OF THE IDC. President Kendall welcome( Rick Wo1fstel1er to the IDC and acknowledged the importance of linkage between the City and the IDC for industrial developmert. . 5. CONSIDERATION OF COMPARIS(N OF LOCAL PROPERTY ESTIMATED MARKET VALUES AND ASSESSED VALUE < . The IDC members having received a copy of comparable local property estimated market values and Rick Wolfsteller explaining the city was instructed t( bring the commerical/industrial property valuations up t( 90-95% of their true market value was the primary reason fo the increased property valuations. Rick will check with the (ounty Assessor if other cities in Wright County abided to tIe State's request. Mayor Grimsmo reminded the IDC members (f Monticello's low taxes compared to other communities. ThE committee requested a copy of the city's up front chargES including building and plumbing permits; water and sewer hookup chcrges; and industrial sewer and water rates. Also compar son of other communities. It was suggested to invite John ~imola, Public Works Director, to the IDC meeting. 6. CONSIDERATION TO SELECT TIE DATE FOR THE 1988 IDC BANQUET. Joel Winkelman recommende( the IDC change the date of the IDC Banquet from the trad tional May date to Monday, September 19, 1988. It was agreed tpon by consensus of the IDC. . 7. CONSIDERATION TO SET GOAL < AND OBJECTIVES FOR 1988. Don Smith suggested the C ty pursue a unified logo and the IDC continue the personal contact with interested potential companies. Pres. Kendall asked the IDC Goal Setting Subcommittee to meet and establish the 1988 goals. 1_.____.._____._ . 8. CONSIDERATION FOR RECOMME DATION OF NOMINEES FOR THE NON- REVOLVING LOAN FUND BOARD The IDC didn't recommend Board of Directors for the Revolving Loan Fund until the initi 1 program's pre1imiary draft is completed. Dale Lungwitz agreed to be a member of the Board. It was suggested that Kor pchak contact Ar1ys Nelson, Wright County Commissioner, rega ding an interest for a Wright County Development Program (revo ving fund). 9. REPORTS. The IDC members accepted he reports as written. 10. OTHER BUSINESS. None. 11. ADJOURNMENT. By the consensus of the I C, the meeting adjourned. Olive M. Koropchak Executive Secretary Monticello Industrial Develop ent Committee . . . IDC Agenda - 9/24/87 3. CONSIDERATION OF COMPARAB E UP-FRONT CITY CHARGES FOR COMMERICAL/INDUSTRIAL DEV LOPMENT PROJECTS. A. REFERENCE AND BACKGRO ND. At the last IDC meeting I regarding the City's up-f industrial. Enclosed is charges for the beverage to locate in Monticello. present fees and remember heavy user of water and s of fees charged by Elk Ri (Water and sewer rates ar Points l. 2. 3. 4. 5. to consider if Cit Cost of sewer hook Fees must to paid Used for Improveme City engineer's bi Industrial benefit 6. Increase in proper increase for 1988. Need to complete c 7. . asked to compile some figures ont charges for commerical/ copy of estimated start-up rocessing company if they were These figures are based on the this particular company is a wer. Also enclosed is a comparison er. Litchfield. and Buffalo. in the mail). of Monticello encourages new business. up charges for heavy users. p front. (Can be used for initial working capital) t Funds and General Fund. ;1 charged to developer. to city (Increased property valuation and increased jobs). y valuation and projected mill rate pavement. and landscaping immediately. This is an informational "tern to be discussed by the IDC. Alternative actions are list below. B. ALTERNATIVE ACTIONS. 1. Drop the issue. 2. Investigate further. 3. Bring to attention of City Council. C. STAFF RECOMMENDATION. Staff recommends further nvestigation before involving City Council. D. SUPPORTING DATA. Copy of estimated start-u and copy of city comparis . to the beverage processing company . ESTIMATED POTENTIAL START-UP COST FOR THE BEVERAGE PROCESSING COMPANY IN CONFORMANCE WITH T E PRESENT CITY PERMITS AND HOOKUP CHARGES. $12,040.1 40.5 $12,080.6 etal building Assumptions: 120,000 sq ft 23.35 acres Building permit Plumbing permit TOTAL based on $2,500,000 building valuation Water hookup Sewer hookup TOTAL 7,030.0 96,000.0 $103,030.0 + COMBINED TOTAL $115,110.6 ESTIMATED MONTHLY OR ANNUAL W TER AND SEWER COST Assumption: Water usage 6 m llion gallons per month or 300,000 per day Estimated water bill $1,696 40 per month or $20,358 per year Assumption: Waste Treatment 1.63 million gallons per month or 81,500 gal/day rounded to 80,000 gal/day. . 1,000 lbs. BOD p r day and 250 lbs TSS $1,754.20 1,860.00 925.00 $4,539.20 Flow BOD TSS Total Estimated sewer bill $4,539 20 per month or $54,470.40 per year TOTAL WATER AND SEWER BILL AN UALLY: $74,828.40 estimated ESTIMATED ANNUAL INCREMENT TO BE GENERATED ESTIMATED MARKET VALUATION $ ,429,935.51 POTENTIAL JOBS 35 Initial 7 in five years $88,502.93 Estimated cost to upgrade Che sea Road and Dundas Road to 9 ton $76,455.00 Estimated cost of water tower and well $1 million . Possible types of funding; T x Increment Financing I dustrial Development Bonds innesota Small City Development Loan Program ( Public Facility) . . . INDUSTRIAL UP-FRONT CHARGES September 1987 MONTICELLO BUFFALO Mary 682-1181 LITCHFIELD Jim 693-7201 Rueben 693-3277 ELK RIVER Ken 441-7420 ViVian 441-2020 Darrell 441-5136 BLDG PERMIT GOES TO State Rec. fees 1985 City General Fund State Rec. fees 1982 Inspection. eng. fees State Rec. fees 1979 State Rec. fees 198 5~, Adjustment industrial val. General Fund PLBG. PERMIT $20.00 $1.00 per fixture New $....0.00 Repair $15.00 $3.00 per fixture WATER HOOK-UP GOES TO Permit $20.00 4" line $1,200. 6" line 1,500. 8" line 2,000. Meter - same as cost to City Plus material cost Combined water & sewer Permit $30.00 Water Improvement Fund Permit $100.00 Other costs billed to dty become special assessments. Meter same as cost to City $50.00 Privilege fee, developer responsible for other costs. Meter - same as cost to City 4" line $900. + $1,098 meter 6" line $1.200. + $2,502 meter 10" line $1,600. + $4.844 meter Other cost to developer. SEWER HOOK-UP GOES TO Permit $20.00 $300.00 per 250 gal. flow per day. $300. per unit. Individ- ual catagory/unit. Sewer Improvement Fund. Permit $100.00 Other costs billed to city become special assessments. $150.00 for 4-6" line, developer re- sponsible for other costs. $1,000 per unit 1 unit 15 employee~ not by flow City Engineer Fees Billed to developer. Ab sorb ed by City or charged to project cost Settled between developer's eng. and city. If city charges, absorbed to encourage business Billed to contractor INDUSTRIAL UP-FR NT CHARGES . September 19 7 continued page 2 BIG LAKE BLDG State Rec PERMIT fees 1985 (will be adopted this Jan. previous 1982) WATER $775. up- HOOK-UP front + $100 for meter (on larger projects reduced or waiv d) + $ per valuati n Other cost deve opers responsibility . SEWER Combined with HOOK-UP water hook-up (one charge) CITY ENGINEER Negotigated FEES between staff. council. and developer. . . IDC Agenda - 9/24/87 4. CONSIDERATION OF COMPARABL ESTIMATED MARKET VALUES. A. REFERENCE AND BACKGROU D. . Having contacted Mr. Doug that the State increased t for the following Wright C commerical/industrial esti Buffalo, and Rockford, a 2 estimated market values in commerical/industrial esti Delano. Monticello's incr not have the average incre Monticello. I calculated on the properties listed i average increase of an ap estimated market values. have estimated the increas indicated that replacement however, the land cost are selling prices of commeric indicates to Mr. Gruber th still be low. He does no property values for commer cities. Mr. Gruber is reI of the variables. He said a list of designated compa he would consider supplyin a possible increase of 10 mill rate. Rick Wolfste11 dollar for commerica1/indu 5. CONSIDERATION OF 1988 IDC A. REFERENCE AND BACKGROU D. Having written Mr. Herrman guest speaker for the Sept received the enclosed resp plus expenses. Previous I cost. I have not responde discussion by the IDC memb B. ALTERNATIVE ACTIONS. 1. Hire Mr. Herrmann for 2. Explore other alternat C. STAFF RECOMMENDATION. . None. D. SUPPORTING DATA. Copy of Mr. Herrmann's let er. ruber, County Assessor, he explained e estimated market values in 1985 unty cities: A 15% increase on ated market value in Albertville, % increase on commerica1/industrial St. Michael, and a 10% increase on ated market values in Annandale and ase was in 1986 but Mr. Gruber did se on commerical/industrial for he average increase from 1986 to 1987 last month's agenda which showed an roximate 21% on commerical/industrial ary Anderson, City Assessor, would between 20-25%. Mr. Gruber further cost are about the same in all cities; higher in Monticello. The recent l/industrial property in Monticello t the estimated market values may have a comparable list of assessed cal/industrial in Wright County ctent to provide such a list because if a competent person would compile ative properties from various cities the information. He also predicts ills to the 1988 school district r will try to get a per square trial buildings in the county. UET SPEAKER, CHARLIE HERRMANN. on August 21 to be our potential mber 19, 1988, IDC Banquet, I Main issue is the $1,000 fee C guest speakers have been without to Mr. Herrmann's letter untJiL/a i. rs. plus expenses. .. .'..c... . . , j . '.~ i i ':\'.~"~ I . fOSTENS CHARLIE HERRMANN Vice President Corporate Sales Development Phone: (507) 455-6226 August 31, 1987 Mr. Ollie Koropchak Economic Development Director Monticello Industrial Developm nt Committee 250 East Broadway Monticello, Minnesota 55362 Dear Mr. Koropchak: wow - - gotta compliment you on your planning -- thinking a year in ad- vance has a lot to recommend t which includes not only the process, but the man who pursues it -- my compliments! I may not be your speaker if nly because I can't be classified as a "volunteer" speaker. Even th ugh your banquet sounds especially appealing, I need to be fairly consistent in the dollar figures that are attached to my speeches- - w'thout that consistency, I end up slighting people who have used me in t e past and will use me in the future. I'm sending to you some copie of letters from organizations where I've spoken recently - - for out of state assignments, and convention groups, my fee is $1,000 plus expense. For Minnesota occasions,' I try to drop about $150 from that figure b t even that may not turn out to be a realis- tic package for you. For school district audiences, e that a high school commencement speech or preschool teachers worksho speech, my fees are somewhat less but those are "no preparation" ass gnments- - I can give you a graduation speech in the next 15 minutes if you will plug in the name of a school. The most entertaining fund r ~ser at which I've recently spoken was a large city in Iowa where, once a year, they have what they call "The Grand Stag." They charge so ething like $50 per dinner for the hundreds of men that show up to have some beverages, josh their peers, and listen to some out f town guy like me - - what a night that was. After you've read this note, i you still want to explore possibilities, let's do that - - in the proces , let's convert me from a "Mr. Herrmann" to a "Charlie." jm cordi~IY . } ~ 'c)/llt/02vL: Charlie Herrmann 148 cAST eROADWAY' OWATONNA', MINN~SOTA 55060 . 8. CONSIDERATION OF PLANS FOR A. REFERENCE AND BACKGROUN . On September 4, 1987, I add McEachern and Bauer1y, and vitation is for a 12:00 noo IDC at the Comfort Inn, Tre At this time, I've received Bauer1y. Please mark this thoughts, concerns, or ques IDC Agenda - 9/24/87 IDC NOVEMBER MEETING. an invitation to Representatives enators Adkins and Davis. The in- gratis luncheon meeting with the Lounge on Wednesday, November 18, 1987. a positive response from Representative ate on your calendar and prepare 9. REPORTS. A) BEVERAGE PROCESSING COM ANY. On September 12, I telephoned Mr. Doaald Seelig with MK-Ferguson representing the beverage processing company. I telephoned to inquire on the status of the final site location decision. Mr. Seelig informed me additional cities were being considered in addition to the narro ed field of three (Monticello included). However, I neglected to sk if the additional cities were within or without the St te of Minnesota. Projected final decision date is schedul d for the end of September. Thereafter, I wrote a letter to Mr. eelig reiterating Monticello's interest in the company, Monticello's incentives, and my willingness to work with the company to ensure a smooth and consistent developme t within the City of Monticello. . B) EXTENDED AREA METRO SERV. CEo According to Ron Hoglund, a sufficient number of signatures have been obtained to fi e a petition with the Minnesota Public Utilities Commiss.on. Signatures are being checked for duplicates, etc. bef re submitting. Mr. Rierson was scheduled to speak at th Senior Citizen's Center on September 16. To my kno ledge no member of the IDC attended. C) JOINT AIRPORT COMMISSION As reported in the local voted to withdraw from t did not come as a surpri because the final draft an over-all contractor w were being made with the offica1s to meet and obt expected amount of fundi conduct a feasibility st time, Mr. Thomas Creight has not returned my tele should proceed on it's 0 this was originally an I; muncipalities had expend end of May, 1987. . newspaper, Big Lake City Council e Joint Airport Commission. This e to me; however, I was disappointed or the request for proposal to hire s near completion and arrangements FAA and MinnDot/Aeronautics Division in documentation requirements/ g. The contractor (engineer) would dy and assessment need. At this n, attorney at Hannan & O'Connor, hone call to advise whether Monticello or what options we have. Since C goal, what is your opinion? Both tures of $2,600 each through the IDC Agenda - 9/24/87 . D) MONTICELLO FORD PROPER Y On Tuesday, September 5, 1987, the HRA and Monticello Ford, Inc. executed the Cont act for Deed for the property at 249 West Broadway. Th property was acquired by monies in the HRA General Fun and increment generated off the elderly project within the redevelopment district. Plans are for John Simola to prepare specs for demolition with demolition by December 1987. The HRA has no sxcess monies to acquire additional roperty in the area: however, other means are being considered such as the possibilities of a Community Developme t Block Grant (CDBG). As persons from within the commu ity have different ideas about the downtown area I would like to see a coordinated effort to design a new city logo, this to be tied in with street scape (the design pla s should be ready the first of October), and redevel pment of the old Ford area and the old bridge. . . . .~;;:.:r '~:~;~~:}/#~ ......-:o;4>tf'.. iMfw' -....M.-W.. . r. ~' ? . . . Montic 110 Industrial Develop ent Committee 250 East Br adway Monticello, Minne. ota 55362 Phone (612) 95-2711 september 4, 1987 Representative Gerald Bauerly Route 2 sauk Rapids, MN 56379 Dear Representative Bauerly: Ita egg"" fOR . ICOROMIC OIVtLO'MIRT The Monticello Industrial Developm nt committee is comprised of eleven individual volunteer business lead rs from various prOfessions within the community of Monticello. They are committed to the promotion and retention of economic development 'n conformance with the city of Monticello Comprehensive plan. The Minnesota business climate has become a major concern of this committee: therefore, they invite au to join them on Wednesday, November 18, 1987, 12:00 Noon at the comfort Inn. A gratis luncheon will be served in the Tree Lounge foIl wed by an informal exchange of business climate concerns and the exchange of viewpoints and ideas for the future business climate of Minnesota and Monticello. The comfort Inn is located at 200 East Oakwood Drive or sout east of the interchange of Interstate 94 and state Highway 25, behind McDo aIds. please RSVP to my office by mail r call me at (metro) 333-5739 or (612)-295-2711. If you have furt er questions, please do not hesitate to call me. I look forward to heari g from you. Sincerely, Ollie Koropchak Economic Development Director OK/kd cc: File ~."';:;:."'.'., ~~~~:;:~'.3~~~ ~~,?~':~..'" ,. . . . Montic 110 Industrial Develop ent Committee 250 East Br adway Monticello, Minne ota 55362 Phone (612) 95-2711 September 3, 1987 Dear IDC Member: please change the date of our September 17, 1987 to Thursda 7:00AM, City Hall. The reaso I'll be attending a Star City 15-16 and NDC Workshops on Se meeting from Thursday, , Se tember 24, 1987, for the change is Conference on September tember 17-18. Still no word from the bevera e processing company. See you September 24th. Sincerely, C~ Y----6\U~~ Ollie Koropchak Economic Development Director cc: File smr~ CQg !!I1T (CO.O.IC O(YElO~.UT .~~::~ ~>~ ~'~ ..~..:.. .~~: ,,'. ' . . . .......... Montic 110 Industrial Develop ent Committee 250 East Br adway Monticello, Minne ota 55362 Phone (612) 95-2711 . . August 21, 1987 Mr. Charlie Herrmann Vice President of Corporate Sales evelopment Jostens 148 East Broadway Owatonna, MN 55060 Dear Mr. Herrmann: The purpose of this letter is to "nvite you to be guest speaker for the Monticello Industrial Dev lopment Banquet the evening of Monday, september 19, 1988. T e IDC is comprised of twelve individual volunteer business lea ers from various professions within the community of Monticell. They are committed to the promotion and retention of econom c development in conformance of the city of Monticello Compreh nsive Plan. Each year the committee hosts a f d raising banquet which is attended by approximatelY one hun red individuals. The evening events include social hour, meal, guest speaker (one-half hour), and recap of the year's developme t activities. PreviouS volunteer speakers have been Mr. Donald McC rthy, NSP Past Chairman of the Board; Mr. Mark Dayton, Past Stat Commissioner of Economic Development; Mr. Tom Triplett, State Commissio er of Revenue; and Mr. Win Bordin, President of the Minnesota Association of Commerce and Industry. It is by consensus of the IDC co ittee to recruit a positive and motivative speaker for 1988. Mr. Shelly Johnson, superintendent of School District #882, and Mr. Donald smith, Newspaper publisher and Editor, recommended your nam and thereafter was approved by the committee. We extend an early invitation be ause of your busy schedule and hope you will consider the invit tion and respond to us as soon as possible. I will be your con act person and will provide detailed information at a later date. If you have further questions, please do not hesitate to call me at (M tro) 333-5739 or (612) 295-2711. Thank you, and we look forward t hearing from you. THE MONTICELLO INDUSTRIAL DEVELO MENT COMMITTEE ~ \Za.o~~ Ollie Koropchak Economic Development Director OK/kd cc: File ....~...~+t. ,_:><~:~ ",...- -' Monti ello Industrial Develop ent Committee 250 East roadway Monticello, Mlnn sota 55362 Phone (612) 295.2711 smn~ UU . , , fO~ ' ECOIO.'C C DEVElO'.Elf . "~) August 18. 1987 Ms. Terry Beattie Data Card Corporation 11111 Bren Road West Minneapolis. MN 55343 Dear Ms. Beattie: On behalf of the Monticello ndustrial Development Committee, I wish to express our understa ding of Data Card's decision to place on "hold" their planne satellite/feeder plant project. . After the pending acquisitio the IDC encourages the conti Data Card's facility in Mont has not prompted our commit credibility of your company on the project or at any oth me at Metro 333-5739 or (612 by National Computer is resolved. ,uation of negotiations to expand cello. The delay in your decision ee to change their minds on the When you receive the go-ahead r time. please feel free to contact 295-2711. The very best to the Data Ca d Corporation. Sincerely. ~ ~~o~ Ollie Koropchak Economic Development Directo cc: File .