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IDC Agenda 08-20-1987 . AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday. August 20. 1987 - 7:00AM City Hall Members: President Harvey Kendall. Shelly Johnson. Bud Schrupp. Arve Grimsmo. Rick Wo1fste11er. Jay Morrell. Dale Lungwitz. Bruce Gagn~lius. Ron Hoglund. Don Smith. Joel Winkelman. and 11ie Koropchak. 1. Call to Order. 2. Approval of the July 16. 1987 IDC Minutes. 3. Review of the IDC Financi1 Statements. 4. Introduction and Welcome of Rick Wo1fste11er. City Administrator. as a Member of the IDC. 5. Consideration of Comparisons of Local Property Estimated Market Values and Assessed Values. 6. Consideration to Date for the 1988 IDC Banquet. 7. Consideration to Set Goals and Objectives for 1988. . 8. Consideration for Recomme dation of Nominees for the Non-Profit Revolving Loan Fund Board. 9. Reports: Beverage Processing Company Joint-Airport ommission Extended Area Services 10. Other Business. 11. Adjournment. . . MINUTES MONTICELLO INDUSTRIAL D VELOPMENT COMMITTE Thursday, July 1 , 1987 - 7:00AM City Hall Members Present: Bud Schrupp, oel Winkelman, Ron Hoglund, Jay Morrell, Dale Lungwitz, Don Smith, and Ollie Koropchak. 1. Call to Order. In absence of the IDC Presi ent and Vice President, Ollie Koropchak called the IDC me ting to order at 7:11AM. 2. A rova1 of the June 18, 19 7 IDC Minutes. Ron Hoglund made a motion t approve the June 18th IDC minutes, seconded by Bud Sc rupp. 3. Reports. a) Beverage Processing Com any - Koropchak reported she had received a letter f om the consultants of the beverage company asking for the City of Monticello's best and final offer. lans are for the consultants to present their findin s to the beverage processing company board of directors the last week in July. . b) NAWCO Minnesota, Inc. - ith the completion of the Tax Increment District process and the acquisition of the land, constructio began July I, 1987 in the Oakwood Industrial Park or the proposed approximate 28,000 sq ft facility. c) Data Card Corporation - company's plans for expa "hold" until the pending Computers is resolved. oropchak reported that the sion have been placed on acquisition by National d) Joint Airport Commission - Koropchak reported Tom Creighton, his assoc ate, and herself met and began preliminary drafti g for a "request for proposal" which is the criteria to follow for hiring a design engineer. This request or proposal must meet Federal and State requirements t insure funding participation. e) Monticello Ford Inc. - K negotiating with Mr. Fla of the property located time no purchase agreeme plans include the demoli . f) Directors of Monticello that City Attorney Pring organizational structure powers of the City to Ie ropchak reported the HRA was e for the possible acquisition t 249 West Broadway. At this t has been executed. The HRA ion of said property. evelopment - Koropchak reported e's opinion of the DMD's was that it was not within the ally create such an organization. IDC Minutes - 7/16/87 . g) Fulfillment Systems, Inci. - Koropchak asked the conunittee if they were aware of FSi 's expansion in St. Cloud? The conunittee responded of a! rental expansion. The conunittee further questioned the i crease in the assessed property valuation for FSI. The. onunittee members logic states if the city's assessed p operty valuation increased then the mill rate should dec ease. The committee requested a comparison of assessed property values and taxes over a five year period. Joe Winkelman recommended Rick Wolfs teller be a member f the IDC and felt an " explanation of the asses ment process would benefit the IDC. Seconded by Dale L ngwitz. 4. Other Business. Jay Morrell felt the IDC sho' Koropchak and IDC members to political issues, lobby, and representatives before the b Suggestion was to invite Dis luncheon meeting in November ld become more politically active. watch for business and commerical person to person contact with ginning of the legislature session. rict representatives to an IDC . Don Smith expressed a welcom to the IDC, and sees the the City Administrator. of Rick Wolfsteller as a member for community involvement from Ron Hoglund reported the wom gathering signatures on the extended area service pe~iti 5. Adjournment. By concensus of the IDC, the eeting adjourned. ~-~O'\o Ollie Koropchak Executive Secretary Monticello Industrial Development Committee . MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE FINANCIAL IREPORT August 15, !1987 Prepared by 011i~ Koropchak . Security Federal Savings & Loan Money Market: Balance, July 24, 1987 Wright County State Bank Money Balance, July 31, 1987 Wright County State Bank Balance, July 31, 1987 TOTAL IDC ACCOUNTS . . $ 3,427.06 9.308.95 129.43 $12,865.44 MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE ! . Security Federal Sa ings and Loan Money Mar et Balance, November 24, 1986 $ 3,309.33 DEPOSITS: -0- INTEREST: December, 1986 $ 14.31 January, 1987 14.86 February, 1987 14.92 March, 1987 13.53 April, 1987 15.05 May, 1987 14.14 June, 1987 15.67 July, 1987 15.25 TOTAL INTEREST 117.73 TOTAL DEPOSITS AND INTEREST $ 117.73 $ 3,427.06 WITHDRAWALS: -0- . BALANCE, July 24, 1987 $ 3,427.06 . MONTICELLO INDUSTRIAL D V ELOPMENT COMMITTEE . Wright County St't e Bank Money Mark t Balance, October 31, 1986 $ 7,421. 02 DEPOSITS: 1986 Chamber Contribution December 29, 1986 $ 2,500.00 1986 City Contribution February 8, 1987 4,800.00 1987 Banquet May 20. 1987 1,125.00 May 20. 1987 2.175.00 May 20. 1987 2.700.00 June 8, 1987 750.00 June 18, 1987 375.00 TOTAL DEPOSITS $ 4.425.00 INTEREST: November, 1986 $ 29.72 December. 1986 32.96 January. 1987 44.57 February, 1987 34.76 March. 1987 15.29 April. 1987 15.36 . May. 1987 25.43 June. 1987 39.81 July. 1987 43.15 TOTAL INTEREST $ 281. 05 TOTAL DEPOSITS AND INTEREST $14,706.05 $22.127.07 WITHDRAWALS: Transfer to Checking 11511 November 25, 1986 $ 300.00 City of Monticello 11512 February, 1987 1986 Salary 1 ,718.12 Transfer to Checking 11513 February 12. 1987 300.00 Transfer to Checking 11514 June 9. 1987 .500.00 TOTAL WITHDRAWALS $1 .818.12 $12,818.12 $ 9,308.95 BALANCE. July 31. 1987 $ 9,308.95 . MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Wright County Stete Bank Checking Accot nt . Balance, October 31, 1986 DEPOSITS: Transfer from W.C.M.M. November 26, 1986 Transfer from W.C.M.M. February 13, 1987 Transfer from W.C.M.M. June 10, 1987 TOTAL DEPOSITS . WITHDRAWALS: TRAVEL, CONFERENCE, MEMBERSHI S Ron Hoglund #267 December 22, 1986 MIDA It266 December 22, 1986 ENTERTAINMENT (Prospects) Monticello Floral #264 November 25, 1986 River Inn #264 November 25, 1986 Ollie Koropchak #268 January 22, 1987 Ollie Koropchak #269 February 9, 1987 Ollie Koropchak #270 February 12, 1987 Dino's Catering #271 March 19, 1987 Ollie Koropchak #272 March 24, 1987 Ollie Koropchak #273 April 27, 1987 Ollie Koropchak #278 June 17, 1987 BANQUET Monticello Office Products June 9, 1987 #274 Wood type Minnesota June 8, 1987 #275 Monticello Printing June 1, 1987 #276 Monte Club June 8, 1987 #277 MISCELLANEOUS Monticello Printing #276 Letterhead & Envelopes TOTAL WITHDRAWALS -. ~. 300.00 I 300.00 1,500.00 2,100.00 25.00 95.00 63.60 217.35 15.00 16.47 73.50 50.00 30.34 28.75 14.77 10.36 48.00 31.06 1,324.75 68.58 ~ 2,112.53 $ 2,100.00 $ 120.00 $ 509.78 $ 1,414.17 $ 68.58 $ 2,112.53 $ 150.96 $ 2,250.96 . SERVICE CHARGE November, 1986 December, 1986 January, 1987 February, 1987 March, 1987 April, 1987 May, 1987 June, 1987 July, 1987 TOTAL SERVICE CHARGE 1.00 .90 1.20 1.00 .80 .95 .80 1.55 .80 $ 9.00 $ 9.00 TOTAL WITHDRAWALS & SERVICE CRA GE $ 2,121.53 BALANCE, July 31, 1987 . . Page 2 Checking Account $ 2,121.53 $ 129.43 . 1987 IDe BANQUET SUMMARY REVENUE: 98 tickets @ $75.00 EXPENSES: Monticello Office Products Woodtype Minnesota Monticello Printing Monte Club Meal Hors d'oeuvres Bar (before) Bar (after) Gratuity TOTAL EXPEN:sE NET PROFIT Prepared August 15. 1987 . . 749.60 176.00 253.35 45.80 100.00 .324.75 $ 10.36 48.00 31. 06 $1.414.17 $7.350.00 $5.935.83 . 5. CONSIDERATION OF COMPARISON' MARKET VALUES AND ASSESSED OF LOCAL PROPERTY ESTIMATED ALUES. A. REFERENCE AND BACKGROUN Enclosed is the comparison property market values and Also, enclosed is a five ye and the formulas used to de Rick Wolfstel1er will be pr any further questions. IDC Agenda - 8/20/87 f twelve industrial and retail ssessed values over five years. r comparison of the mill rate ermine the assessed values. sent at the meeting to answer 6. CONSIDERATION TO SELECT THE DATE FOR THE 1988 IDC BANQUET. A. REFERENCE AND BACKGROUm . At several of the past IDC I eetings, the committee has talked about a change of date for lur banquet. Previously, it has been held the third Monday n May; however, with the ticket sales down, difficulty in rl cruiting a speaker, and Maya busy month in itself were Slme of the rationa1e,behind the possible date change. The ommittee had asked myself to write and invite Mr. Charli~ Herman of Josten's as the potential 1988 guest speake . for this reason I would like a decision on the date. . C 11988 C JANUARY MAY SEPTEMBER SMTWTF"S S M T W T F S 5M"fW'tf="S I 2 I 2 ;]4567 I 2 3 3456789 8 9 10 II 12 13 14 45678910 10 II 12 13 14 15 16 15 16 , \7 18 19 20 21 II 12 13 14 15 16 17 17 18 19 20 21 22 23 22 23 24 25 26 27 28 18 19 20 21 22 23 24 24 25 26 27 28 29 30 29 30, 31 25 26 2728 29 30 31 FEBRUARY JUNE OCTOBER 123456 I 2 3 4 I 78910111213 5 6 7 8 9 10 II 2345678 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 II 12 \3 \4 \5 21 22 23 24 25 26 27 \9 20 21 22 23 24 25 16 17 18 19 20 21 22 28 29 2627 28 29 30 23 24 25 26 27 28 29 --l 30 31 ;;r MARCH JULY NOVEMBER in Ui I 2 3 4 5 I 2 I 2 3 4 5 '" 6789101112 3 4 56789 6789101112 If 13 14 15 16 17 18 19 1011 12 13 \4 15 16 13 14 15 16 17 18 19 20 21 22 23 24 25 26 17 18 19 20 21 22 23 20 21 22 23 24 25 26 27 28 29 30 31 24 25 26 27 28 29 30 27 28 29 30 31 APRIL AUGUST DECEMBER @ 1 2 123456 I 2 3 [ 3456789 7 8 9 10 II 12 13 45678910 10 II 12 13 14 15 16 14 15 16 17 18 19 20 II 12 13 14 15 16 17 !!l \7 18 19 20 21 22 23 2\ 22 23 24 25 26 27 18 19 20 2\ 22 23 24 24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30 31 <0 . Year ~timated Market Value Assessed Value, '. Fulfillment Systems, Inc. - Lauring Hi 1side 155-029-002060 002070 002080 1987 86 85 84 83 $1,152,400.00 1,078,400.00 33,100.00 24,000.00 24,000.00 $486,532.00 454,712.00 13,240.00 9,600.00 9,600.00 Bondus Corporation - Auditor's Subdivi ion 155-011-000031 Taxes $43,609.34 36,004.56 1,076.48 786.78 811.86 1987 $ 522,300.00 $215,589.00 $19,323.88 86 264,700.00 104,821.00 8,299.84 85 261,900.00 103,617.00 8,424.58 84 261,900.00 108,117.00 8,860.84 83 261,905.00 111,119.00 9,396.90 Wrightco - Original Plat 155-010--018, 60 018; 80 1987 $ 766,500.00 $320,595.00 $28,735.92 86 564,500.00 233,735.00 18,507.40 85 564,500.00 233,735.00 19,003.84 84 560,100.00 232,815.00 19,080.60 83 540,650.00 229,803.00 19,433.54 . Larson Mfg. - Oakwood Industrial Park 155-018-001041 1987 86 85 84 83 $ 184,100.00 139,700.00 139,700.00 139,700.00 139,670 $ 70,163.00 51,071.00 51,071.00 55,571.00 58,558.00 $ 6,288.92 4,043.86 4,152.34 4,554.38 4,952.02 Perkins (De1rey Monticello Assoc.) - Original Plat 155-010-003010 1987 86 85 84 83 $ 331,300.00 289,700.00 289,700.00 289,700.00 289,687.00 $133,459.00 115,571. 00 115,571. 00 120,071.00 123,065.00 Security Federal - Original Plat 155 010-032010 1987 86 85 84 83 $ 370,500.00 70,400.00 130,700.00 1,434,049.00 1,434,049.00 $159,315.00 30,272.00 52,280.00 . $11,962.34 9,151.04 9,396.50 9,840.54 10,407.12 $14,279.90 2,396.98 4,250.64 Year Estimated Market Value Assessed Value ~ . Coast to Coast - Original Plat 155-01 -031031 1987 $ 185,900.00 $ 70,937.00 $ 6,358.30 86 117,000.00 41,310.00 3,270.98 85 108.800.00 37,784.00 3,072.04 84 97,100.00 37,253.00 3,053.12 83 97,118.00 40,261. 00 3,474.72 Johnson's - Original Plat 155-010-052 31 1987 $ 149,700.00 $ 55,371. 00 $ 4,963.08 86 143,500.00 48,133.00 3,811. 22 85 143,500.00 48,133.00 3,913.46 84 131,900.00 48,689.00 3,990.36 83 131,408.00 51,520.00 4,356.84 Stella's - Original Plat 155-010-0351 1 1987 $ 65,900.00 $ 19,337.00 $ 1,733.24 86 37,800.00 10,584.00 838.06 85 37,800.00 10,584.00 860.54 84 32,200.00 10,948.00 897.26 83 32,170.00 12,868.00 1,088.20 Monticello Theater - Original Plat 15 -010-053050 . 1987 $ 202,800.00 $ 75,429.00 $ 6,760.94 86 180,100.00 63,673.00 5,041. 70 85 180,100.00 63,673.00 5,176.94 84 180,100.00 68,173.00 5,587.20 83 179,610.00 71,033.00 6,006.98 Flicker's - Original Plat 155-010-035 40 035 41 1987 $ 235,200.00 $ 92,136.00 $ 8,258.44 86 194,400.00 74,592.00 5,906.28 85 194,400.00 74,592.00 6,064.70 84 197,200.00 80,296.00 6,580.76 83 197,203.00 83,297.00 7,044.12 Foster's - Original Plat 155-010-0360 0 1987 $ 144,500.00 $ 51, 533.00 $ 4,619.06 86 95,000.00 28,892.00 2,287.70 85 95,000.00 28,892.00 2,349.06 84 81,200.00 28,220.00 2,312.80 83 81,120.00 31,192.00 2,637.78 . . ,., co .-i ~ I~ ,., lr) ,..... .-i N co 0'\ 0'\ N ~ 0'\ .-i M 0 \.0 ,., N N ,., ~ CO 0'\ .-i o CO lr) ,., N ~ ,., ,..... ,..... .-i lr) ,., ,., ,..... ,., ,..... o ,., ,., \.0 lr) 0'\ .-i CO ,..... CO 0'\ .-i N M ,., .-i N l1"\ .-i ,..... lr) .-i co ~ .-i CO ~ co ,., ~ ~ ,., M '" 0'\ CO w u W OM U ,.. OM W ,.. CIl W OM CIl Q OM Q .-i (\l . >. .-i W W 0 OM ~ c: >. 0 p. ;:I W ,..c::: CIl H 0 OM U 0 0 U U (f.l 0:: E-< USE THESE NEW CODES WHEN WORKING N FIELD BOOKS IN 1987 FARM ~.CF OACF (Up to 320 Acres) ~~~ OBCF (321 Up to 640 Acres) '. RESIDENTIAL 0-65,000 --------------------------- ~ H-C 32,600 - 65,000 -------------------- H2CR Over 68,100 ------------------------ H3-R Up to 32,500 ----------------------- H1CR 65,100 - 68,000 -------------------- H3CR COMMONLY USED CLASSES BACF ----------- 5% of 32,500 14% of next 32,500 18% of excess over 65,000 R -N ----------------- 34% F -N ----------------- 10% S -N ----------------- 20% - -S ----------------- 21% HACF ----------- 14% of 65,000 18% of Balance . DACF ----------- 18% over 65,000 OBCF ----------- 18% over 65,000 DCCF ----------- 18% over 65,000 -A-F ----------- 18% H-CR ----------.... 18% of 65,000 28% of Excess H1CR ----------- 18% H2CR ----------- 18% H3-R ----------- 28% 1t - -C -------------- 28% of 1st 60,000 43% Balance - -C ----------------- -43% ~ - -I ---------- 28% of 1st 60,000 : 43% of Balance ----------------- 43% ----------------- -43% (Machinery 33 1/3) ----------------- 40% B-CR ----------- 5% of 32,500 18% of next 32,500 & 29% of excess D-CR ----------- 5% of 32,500 18% of next 32,500 28% of excess ental Farm Houses - Use the following: R--R ----------- R4-R ----------- 411t-R ---~------- 28% 34% 40%" R-CF (With Credit) RA-F (Excluding House/1 Acre) R--F (No Credit) 9-23-86 IDC Agenda - 8/20/87 . 7. CONSIDERATION TO SET GOALS AND OBJECTIVES FOR 1988. A. REFERENCE AND BACKGROU D. City staff members are in ~he process of formulating their "wish list" for considerat .,on of the proposed 1988 City Budget. What do you see a1 the future needs for economic development in the City of 'onticello? Initial considerations I have listed are for part! 1 monies or monies for a community brochure, Revolving Loan F~ d seed money. Joint-Airport Commission; thereafter, ref nded by the grant, subdivision of City industrial lots, an streetscape project. My personal objectives are Loan Fund Program and encou offica1s and staff, local b Fund Board on the importanc community. o initiate and market the Revolving age cooperation among the city nkers, and the Revolving Loan of economic development for this . 1. City officals and staff A. Importance of econo ic development B. Review industrial w ter and sewer rates C. Review increased pr perty valuations and mill rates (taxes) D. Subdivide City indu trial lots E. Long range plan for development of II and 12 property as outlined within the City's Comphensive Plan. 2. Bankers A. Importance of econo ic development B. Market the RLF C. Willingness to part cipate in economic development deals 3. Revolving Loan Fund A. Importance of econo ic develpment B. Market the RLF Consideration of IDC object ves 1. Market Monticello 2. Political Involvement 3. Review City Rates, City Taxes, and Zoning Ordinance for the purpose of economic dev lopment. 4. Initiate Revolving Loan Fund 5. Extended Area Service 6. Joint Airport Commissio 7. City Brochure and maili 8. IDC Banquet Remember, the above listed 0 jectives are for consideration and to stimulate opinions. . . IDC Agenda - 8/20/87 8. CONSIDERATION FOR RECOMMEND TION OF NOMINEES FOR THE NON-PROFIT REVOLVING LOAN FUND BOARD. A. REFERENCE AND BACKGROU On Tuesday, August 4, 1987, Joel Winkelman, Harvey Kend preliminary draft of the ap loan fund program. The pur jobs by providing a financi interest rate loans to new within the boundaries of th The status of the current M a non-profit organization b Therefore, the revolving 10 the name Monticello Enterpr I.R.S. code 50l(3)(c) which sources are available. The foundations and corporate 0 deductible contributions to not have to pay income taxe have more money available t . The revolving loan program the public/private sector. but it also must have direc government, financial insti the board, economic develop credibility is established, federal agency support is s commitments are maintained, monitored, and problems are recommends the board member professions with some sugge Banker - Dale Lungwitz Business - Elected official - Warr Accountant - Joel Winke Attorney - Pringle or S Community representativ City Department Head - Inorder to proceed with the status a decision and accep should be made. Input and the IDC. Items to cover for the Revo . 1. Organization Struct A. Non-profit orga 1. Members 2. Role the subcommittee of Shelly Johnson, II, and myself met to review the lication process for the revolving ose of the program is to create 1 incentive of long term/low nd existing small industrial businesses City of Monticello. nticello Development Corporation is t without the I.R.S. code of 50l(3)(c). n program will be incorporated under se Fund as a non-profit organization ensures that a number of funding tax-exempt status allows private individual donors to make tax- the organization. Because it does , the non-profit organization will place in the loan fund pool. as a board of directors selected from The board must be a working board, access to the top levels of utions, and business sectors. Through ent financing policy is formulated, marketing strategies are adopted, cured, private sector lender goals and results are set and surfaced and solved. The subcommittee be representatives from the following ted individuals: Fran Fair, or Dan Blonigan Ridgeway or Con Johnson application non-profit organization ance of individuals on the board ecommendations are hereby open to Loan Fund Program. . B. Economic Developmen Director A. Role 2. Revolving Loan Funding ources 3. Administrative and cation Process IDC Agenda - 8/20/87 4. Financing Methods, Use f Proceeds, Terms and Conditions, and Collateral. . . . 9. REPORTS. IDC Agenda - 8/20/87 BEVERAGE PROCESSING COMPAN: The week of August 10th, Mr~ Jim Simpson, Consultant fo' the Beverage Processing Company, telephoned for further inf .rmation and clarification of Monticello's water and sew r rates to complete their comparison process. I referred the telephone call to John Simola, Public Works Director, as e knows the industrial rates and computations better than I. I have not heard further. I did hear, Sartell, was one of 0 r competitors and that the un- disclosed beverage company a be Canada Dry. JOINT AIRPORT COMMISSION: August 19, 1987 at the Mont elect new officers, discuss drafting of the "request fO' for hiring a design enginee State regulations to ensure August, Tom Creighton, atto associate, and myself will for guideline information a . EXTENDED AREA SERVICE: In Diane Wells, Minnesota Publ communities have consolidat in March of 1988. These he St Paul between the commiss Attorney Humphrey; they are weeks. We are welcome to h however, without filing for silent. Intervention filin Administrative Law Judge. last to file petitions. Th petitions; however, a commu to participate in the conso hearing for community input four weeks, providing all g will make a recommendation for a final decision. The to August 21, 1987. If Mon we would be number 17 on th Praque, Cambridge, and Nort attorney for representation the decision from the March guidelines for the boundari . he commission will meet Wednesday, cello Council Chambers to reorganize, budget, and review preliminary proposal" which is the criteria in accordance with Federal and fundings. The last week in ney for Hannon & O'Connor, his eet with Federal and State personnel d requirements. recent telephone conversation with c Utilities Commission, fourteen d for the public hearings to begin rings scheduled to take place in on, telephone companies, and State expected to run for three to six ve someone set in on the hearing; an intervention we must remain may be done thru Dick DeLong, atertown and Northfield were the commission is still accepting ity would need to file a request idation process. The public with start in May and run for es well. Thereafter, the commission o the administrative law judge ntervention filing date was extended icello filed their petition today list. The communities of New Branch have jointly hired an at the hearings. Ms. Wells felt hearings would probably set the s of area metro service. · f. , . 1 . ~~ - I . 1 .' '~'!' .'........, . .i...'~;~ ~~.!.- ; .'. ~ '- ,./"." - - ...-..-- - ... ~ - ---- - - - - -- - - .. ....... - -~- - ..... -.-... - -- ...... - - --- ....... ,. -- ... -_. -...-. -- .... ... - ....... ----. - ... - - ...-- - - .- - - ..- - -- ..... -- August -- ~- 1987 . there is no funding wit the program any more. What lies ahead fo Big Lake? "In a community survey do e about two years ago, about 80% said th y wanted to work close to home," said ayor Bolin. "So what we will continu trying to attract will be small, clean lig t industrial com- panies along with hea thy and growing ma and pa operations" added King. Availability of com ercial and indus- trial land within the city could soon become a problem and it is no secret that the city has had disc ssions about an- nexing portions of Bi Lake Township. "The township is n t short-sighted," said King. "In the ne five to ten years the two groups (city a d township) will likely be working clo er and closer to- gether," King continu d. So what does it ta e for a smaller community to be succ ssful at economic development? Cooper tive city officials, availability of land an utilities, an ag- gressive marketing c mpaign, a local development team tha is dedicated and takes the time to m e things happen. King summed it all p when he said, "There are good time in Big Lake be- cause we're making tb m good times." Big Lake . from page 1 Inc., a premium redemption firm; Rus- sell'sOn The Lake,. a supper club; Paulson Engineering; Dairy Queen; Big Lake Grain Company; Big Lake Funeral Home; and the mini-mall at the inter- section of Highway 10 and Eagle Lake Road. There are also several new projects currently in the works. An eight lane bowling alley will be built soon with expansion potential of an additional eight lanes. A 28 unit motel is planned for next to Russell's with a town house development to be built next to the motel. The Development Achievement Center is being expanded. Big Lake is somewhat unique in that they have done what they have pretty much on their own. Many cities have gone the route of the state's Star Cities Program which sets out a blueprint of activities a city must accomplish in or. der to gear up for economic develop- ment. According to Bill King, the Star Cities Program "is an excellent program, but would be a duplication of effort for Big Lake. It organizes community devel- opment efforts to attract business, but Urban planners have predicted that in the not too far distant future the High. way 10 corridor between the Twin Cities and St. Cloud. will be fully developed. When asked about what he sees as an ideal size for Big Lake, Mayor Ron Bolin replied, "I don't think we have a choice in size. But we do want to encourage planning and development for the future; if we don't do it, someone will do it for us." What is Big Lake doing to attract development? A revised long range com- munity development plan is in progress. A non' profit 501-C3 Development Cor- poration has been formed. Its seven member advisory board meets every week in order to be able to provide timely assistance to new business and industry. The Development Corporation facilitates low interest loans, land write downs, utility extensions and "whatever it takes to do a deal," according to former city administrator Bill King. For new businesses seeking to relocate in Big Lake and who are requesting some form of assistance the Development Corporation undertakes a thorough screening process to determine the amount of risk and the likelihood of succeeding. Questions they seek answers to include: are the owners committed to _ the company; are they bleeding it dry; do they pay their bills-what is their credit history; what are the working capital needs; what trends are evident from their financial statements. They also do an evaluation of the financial statements for the last three to five years. Big Lake's plan of action seems to be working. Over the past couple of years several new businesses have located in the city including: Fulfillment Systems, CODtlDued OD page 4 ;.: , c....... '. . '7~ -','j .'::';,;J Big Lake For Devel by Larry P. Big Lake is defin tely not a sleepy little community comp acently waiting for their ship to come n. Nestled along the shores of severalla es, Big Lake is about midpoint between St. Cloud and the Twin City metro rea. Its population doubled during th decade of the 70's from 1,100 in 197 to 2,210 in 1980. By 1986 the popula ion showed steady growth to 2,750. . I . j .j -. '\": . Conference review Economic development initiatives - cooperative ventures consolidated approaches Not all cooperative economic devel- opment arises from periods of crisis. Cities of all sizes, anticipating develop- ment problems, are joining with other cities, counties, and townships to organize cooperative economic devel. opment ventures. Adequate staff and committment from business and the governments involved are vital to the success of cooperative economic development ventures. City officials themselves should get involved in fundraising, not just require their staffs to do it. Pre- senters also advised leveraging addi- tional staff from business and community organizations. "Short-term, doable goals that can get results to encourage continued par- ticipation, along with consensus for a common vision" are also necessary for fledgling cooperative ventures, advised Harry Rosefelt of the Department of Trade and Economic Development (formerly DEED). The joint Little Falls/Morrison County economic development com- mission depends on an active commit- tee structure within its IS-member board of directors. Patricia Spence, mayor of Little Falls and a boardmem- ber of the commission, believes her group's keys to success include the fact that economic development is a top priority in the city. Cooperative ventures can't satisfy all of the economic needs of all of the participating members, and they'll occasionally find themselves competing for funding or projects, warned Paul Vanderlinde, city administrator of Grand Rapids and boardmember of the Itasca Development Corporation. But one benefit of the approach, he said, is it provides a single clearinghouse for ideas - "the buck doesn't get passed. " Vanderlinde also encouraged devel- opment organizations to "take the cre- ation of jobs one at a time" through recruiting smaller businesses, even 22 :",~,.",:...,;,,'ltA:"".;.If,"':~'I~"'" .:u:"""'_,. '....I,....~_ft.....:... -",;' ...........- '""'*~ Economic development though it may be m re tempting to get larger numbers of eople hired at one time. Tom MuIIins, exe tive vice president of Rochester Area conomic Develop- ment, Inc., who ha also worked with the Itasca Develop ent Corporation, said he judges suces s by the number of new jobs created, e growth in tax base, and the net in number of firms in the development ea. These criteria are for newly create industriaI develop. ment. According to uIIins, retail devel- opment is not gro , but rather cutting the existing pie into s er pieces. -S.H. Improving th rural economy "In spite of the fact that national publications aren't focusing on the problems of the rural economy as much as they have in the st, we aren't out of the woods yet," arned Tom Stin- son, the new state economist and a professor in the dep ent of agricul- tural and applied e onomics at the University of Minnes ta. Stinson said th U . S. needs a "national rural polic to improve the long-term viability 0 the rural econ- omy," because reso ce.based econ- omies are in trou Ie all over the country. Losses are ot equally distrib- uted across the coun . The Midwest, including Minnesota, is suffering the greatest hardships. S ch a policy, said Stinson, would need to include pro- grams for long-term revitalization of agriculture and preve tion of the seem- ingly irreversible dec" e of communi- ties in non-metropoli America. Stinson described the "new rural poor" emerging from the financial cri- sis facing farm familie , and the ripple effect it has for reside ts of small cities due to the interdepen ence of the farm and main street econo 'es. The migra- tion of these new al poor means major losses of human and financial resources to the local economies that they leave behind. The problem is compounded when they move to large cities, where they compete with the urban poor for the use of costly social services. The federal response to these prob- lems of rural city governments has been to cut general revenue sharing and increase mandates, such as new regulations from the Enviromental Pro- tection Agency. Stinson told the audi- ence the "farm block" is no longer powerful in Congress, and said there's a real need for coalition building at the federal level. Jim Nichols, Minnesota Commis- sioner of Agriculture, contributed his view of the farm crisis as a full-time farmer, and discussed the federal poli- cies he believes are compounding the problem. Between 15,000 and 20,000 Minnesota farmers have gone out of business in the last several years, and another 10,000 of the 103,000 farmers in the state may lose their farms before the farm economy improves, he said. Nichols criticized the federal price sup- port and PIK programs, saying they aren't accomplishing their proposed goals and that farmers don't want to be dependent on governmental support. Over 12 percent of Minnesota farmers have more debt than assets, he noted, and a full third have a 70 percent debt/ assest ratio. "The American agricultural economy doesn't have a production problem, it has a distribution problem," Nichols said. In Minnesota, this is compounded by the underpricing of raw commodi- ties. He supports the Harkin farm bilI before Congress, which proposes to return a fair and competitive balance to farming and eliminate subsidies, to allow farmers to earn competitive incomes. Overproduction for the available market, government subsidies, and the intervention of companies that profit from storing surplus commodities com- bine to make the farmers, main street store owners, and taxpayers the los- ers. "And, consumers don't win either, " Nichols concluded. - S.H. Minnesota Cities ~ I I . . Conference review Economic development tools-an update City officials in this session were guided through the labyrinth of federal and state laws which enhance as well as hinder the economic development tools available to cities. Gene Ranieri, a development spe- cialist with the law firm of Holmes and Graven, provided a historical perspec- tive on development issues. Starting with the 1937 Federal Housing Act, he traced the evolution of federally backed development programs and highlighted the changing rationales for those programs. Ranieri began his discussion of Min- nesota development programs with the early port authorities created in the 1920s for the ports of Minneapolis, St. Paul, and Duluth, and led up to the present-day economic development authorities and tax increment financing. The 1987 Legislature took action with the Rural Development Act that seems to signal a trend toward emphasizing state loans, rather than grants, for funding development projects, Ranieri said. He also described the powers and expected activities of the Greater Min- nesota Corporation and Regional Development Boards. Participants also learned about spe- cifics of the Minnesota Economic Development Authority (EDA) law from Gary Currie, legislative analyst for the House research department. Currie identified the mounting pressure in 1985 for special economic develop- ment legislation as the impetus for developing general legislation benefit- ing a broader spectrum of cities. Currie also explained the substantive differences between port authorities and economic development authorities. Most important of them is~eater authority rriven city councils in the -actIvities of economic development -authontIes. However, EJ2As must hOTd elections to issue bonds. In contrast, port authorities have no such election requirement. Currie also outlined the impact on cities of the ~arginal and blighteum' restriction imposed on EDA development districts. - L.F.H. Economic development What makes sense for your city? Gary Stout, a evelopment consult- ant with Public-P vate Ventures, led a discussion on ec nomic development strategy. "I want you to learn how to outline problems, not just react to solutions," he sal . "This will be the beginning of an eonomic development strategy appropri te to your city." In developing a str tegy, cities should enumerate opport nities to be pursued and problems to e' . ate. From these ideas, you shoul write a single or prioritized strate . "Keep it brief-a page is almost to much, " cautioned Stout. He explained t t although it's diffi- cult to come up 'th a single written policy, it will help in the long run to clarify disagreem nts and misunder- standings, and to d velop a clear direc- tion for your city. written strategy is a tool to get other, eople involved. . Stout conclude by saying cities should not make development deals just because they' e there, but should proceed in a pa ticular direction because it meets t e strategy the city has set for itself. J.A. Promoting s buisness . "Don't give UPI" was the advice development-mind d city officials took away from this sa sion. City officials need patience, tena ity, and courage to show small busines es that their com- munity is seriou' about economic development, acco . g to Gary Stout, a consultant with ublic-Private Ven- tures. Stout em asized the impor- tance of e tab s . g a revo vmg fund to assist sm us' esses, and mtro- duce severa 0 1 la s whose cities have been partie arly successful at attracting businesse . Robert Kessler, assistant to the mayor of St. Paul d a small business specialist, claimed city's economic development direct r must be "part planner, part vacuu cleaner salesman, and part banker." e also underlined August 1987 the importance of setting up revolving funds and cooperating with local banks to provide loans to small businesses. Many cities confuse economic develop- ment with real estate development, he said, but there's a big distinction between those two activities. Eco- nomic development mainly involves providing cheap, clean space and ser- vices to small businesses. John Galles, Sr., mayor of Windom (population 4,166), explained how eco- nomic development can succeed in a small city. His city began by hiring an economic development director and creating a department with a $60,000 budget in 1985. Not everyone in the community agreed with that move, he said. The city was experiencing difficul- ties, with many stores standing empty and a plant closing eliminating 23 jobs. But once businesses heard of the city's commitment to economic devel- opment, Galles said, many local firms contacted the city about expanding. The city worked with a Pamida store that wanted to double its size, provid- ing tax increment financing and assist- ance in purchasing of the property, local utilities, and other services. The project posed difficult problems, but Galles noted the economic develop- ment director didn't give up, and the store opened last November. "Expan- sion begets expansion," he said, and other local businesses have asked for the city's help to expand. Roseville is another city with an active economic development program. Craig Waldron, economic development director, explained how development began in one of the city's targeted areas. Waldron's department worked with a restaurant which wanted to relocate in Roseville from a neighboring city. The city paid to correct the soils at the site, created a tax increment district, bought the right of way, and helped the restaurant buy the land. The new restaurant then served as a catalyst for further development in that area. Waldron said it's important for a city to "have a plan in place and a strong idea of strategy, so that every- one in the city is pulling in the same direction." -E.L. 23 ~."~~", ~;;~.~5jt~ .5~~:~""'- ~"...."" ~ "J' ["' I ":'u) :,' ,~,. ,'. n .'.....,,'~~b, . . . Montic 110 Industrial Development Committee 250 East Bra dway Monticello, Minnesota 55362 Phone (612) 2 5-2711 July 23, 19 7 Dear Industrial Development Upon Mr. Bob Rierson's invit Development Committee is inv Telephone Company Conference of area extended services. with coffee and rolls is sch July 27, 1987 at 7:30AM. It is of the opinion of Pres myself that the IDC respond to cooperate with the teleph our efforts for area extende Please RSVP to my office. Sincerely, ~ \~~C~~ Ollie Koropchak Industrial Development Commi tee Executive Secretary cc: File ommittee Member: tion the Industrial ted to the Bridgewater Room for an "update" he meeting served duled for Monday, dent Kendall and avorably and continue ne company in services. smliRf gg . , fOR " ICOIO.IC C DEY!lD'.UT 1987 IDC Banque . . 1 Gene Walters 1 Gene Fair 2 Wright County State Bank 2 Loch Jewelers 1 Kjellberg's 2 Jones Cable TV 2 Gruys & Johnson 2 AME Ready Mix 2 Johnson Store 2 Peterson Const., Buffalo 2 Mattson Weg1etmeyer-Abendrath Architects, Mp1s 1 Ron Hoglund 1 Monticello Office Product 2 OSM, Mp1s. 1 Shelly Johnson 1 Springsted, Inc. Mp1s. 2 Dahlheimer Distrib. 2 Coast to Coast 1 Monticello Floral 2 Dave Peterson's Ford 2 First National Bank 2 Mosford, Barthel 2 Maus Foods 1 Mark's Realty 1 Country Travel Store 1 Foster, Franzen, Carlson 2 Lincoln Properties, Mp1s. 2 Gould Brothers Chev. 2 Snyder Drug . 1 George Philips 1 Dale Lungwitz 2 Henning & Assoc, Mp1s. 2 NSP 2 Monte Club 1 Floyd Mark1ing 2 First American Bank, St. Cloud 2 Joyners Lane 2 Ben Franklin 2 ADS (Direct Market Media) 2 Rainbow Enterprises 2 Winkelman Building Corporation, St. Cloud 2 Holmes & Graven, Mp1s. 2 TCF Banking, St. Cloud 2 Viet Construction, Loretta 2 National Bushing 2 Security Federal 1 Golden Valley Furniture 2 Larson Mfg. 2 Fulfillment Systems,Inc. 2 Monticello Times 1 Little Mountain Floral 1 James & Gruber 1 Smith, Pringle, Hayes 1 Ben Smith 2 Fab-con Inc. Chaska 4 Monticello-Big Lake Hospital District 2 Bridgewater Telephone Co. 1 Moon Motors