Loading...
IDC Agenda 02-19-1987 . AGENDA MONTICELLO INDUSTRIAL DEVELOMENT COMMITTEE MEETING Thursday, February 9, 1987 - 7:00AM City Hal Members: President Harvey Kend Shelly Johnson, Arve Gagnelius, Jay Morrel Don Smith, and Ollie 1. Call to Order. 11, Ron Hoglund, Bud Schrupp, rimsmo, Joel Winkelman, Bruce , Dale Lungwitz, Tom Eidem, oropchak. 2. Approval of the January 22, 1987 IDC Minutes. 3. Consideration of the IDC Ba quet Speaker and Menu. 4. Consideration to Accept the Resignation of Dave Peterson as an IDC Member and Considera ion of Choice for a Replacement. 5. NAWCO Minnesota, Metcalf/Larson Pr Low-Level Radioac HRA Financial Too Star City Quarter Monticello-Big La Data Card Corpora Next IDC Meeting Reports: . 6. Other Business. 7. Adj ournment. . nc. ject ive Waste Disposal Facility s y Meeting e Joint Airport Commission ion . . . 3. CONSIDERATION OF THE IDC BAN)UET SPEAKER AND MENU. A. REFERENCE AND BACKGROUND. At the previous IDC meeting, the committee tabled the decision of a guest speaker For the May 18th banquet. I took the liberty and wrote David Speer for optional available dates and I wrote Win Bordin as a potential guest speaker. I haven't heard from Commissioner Speer's office, but I received a letter from Win Bordin stating his positive interest as a potential guest speaker. Also, I've attempted to contact Al Joyner for other guest speaker suggestions, however, at this point, we have been unable to reach each other. Bruce Gagne1ius will discuss menu choices. (See Supporting Data). B. ALTERNATIVE ACTIONS. To be a decision of the IDC. C. STAFF RECOMMENDATION. Staff recommends that the IIC make a final decision for their banquet speaker. D. SUPPORTING DATA. Menu choices. 4. CONSIDERATION TO ACCEPT THE RESIGNATION OF DAVE PETERSON AS AN IDC MEMBER AND CONSIDlRATION OF CHOICE FOR A REPLACEMENT. A. REFERENCE AND BACKGROUND. At the previous IDC meeting the committee voted to accept Dave Peterson as an IDC memter. After Mr. Peterson's acceptance, a schedule chan~e made by Ford Dealers Advertising Board presented Dave with a conflict of meeting dates. (See Supporting Data). B. ALTERNATIVE ACTIONS. 1. To accept or deny Dave eterson's resignation as a IDC member. 2. To proceed or not to prcceed to discuss potential names for a replacement. C. STAFF RECOMMENDATION. Staff's recommendation is t accept Dave Peterson's resignation and to proceed to discuss p tential names for a replacement. D. SUPPORTING DATA. Dave Peterson's letter. *' Banlfuet SpeciaL . A selective menu of our most popular ite s providing a special price for your next banquet. Bowling banquets; Christmas pa ies; special parties; company functions; club get-togethers; meetings! . r MENU 10 oz. TENDERLOIN ST AK...................................... $10.95 in our own mushroo sauce JUMBO SHRIMP.. . .... ............................. (Deep Fried) $10.95 with tartar and cock ail sauce (Broiled) $12.95 . CANADIAN WALLEYE PI E........................... (Deep Fried) $ 9.95 8-10 oz. filets (Broiled) $11.95 BAR-B.QUED RIBS............................................... $ 8.95 in our own sauce DEEP FRIED CHiCKEN........................................... $ 5.95 coated with our honey batter Above includes our salad ar, bread and beverage. Tax and gratuities not included. Entertainment can be aranged, ask for details. CALL NOW AND RESERVE YOUR DATE EARLY (612) 295.22". . tbt monte (!tlub A y . '-ontiullo. JIlinn. ;4d ~ '8<<td ~ '8'UIU I :bau.e p~d, ~ (Q)~1rTICCIEILIL 1-94 & Hwy. 25 · Box 68 · February 10, 1987 Monticello Industrial Development Commi tee Ollie Koropchak Dear Ollie: \- FORD MERCURY INCORPORATED . Local: 295-2056 · Mpls.: 421-6595 Because of a recent schedule change mad by the Ford Dealers Advertising Board of which I am a Director, I am un ble to serve on the Industrial Development Committee. I would like to be considered for the Committee when my term expires in 1990 should an opening be available. . It is with regret that I write this let er because I was looking forward to serving on the Committee. Thank you. Sincerely, o ~..LJ ~L-. Dave Peterson . . 5. Reports. NAWCO Minnesota, Inc. NAWCO Minnesota, Inc. is the incorp rated Minnesota company name with a proposed manufacture facilit to be built in Monticello. In January, Mr. Fjerdingstad and Mr Starheim were in Minnesota to seek final financial arrangements f r their proposed Monticello project. The total estimated project cost is $3.2 million, one-half ($1.6 million) will be financed from Norway plus a additional $800,000 as backup for marketing capital. The total e timated project cost is based on a five year projection which inc udes building, M & E, furniture and fixtures, vehicles, and working capital. Mayor Grimsmo and myself joined Mr. Fjerdingstad and Mr. Sta heim at a meeting with representatives from the Minnesota Trade Office and the Department of Energy and Economic Development. The purpose f the meeting was to establish available state funds for the proje t. The Department of Economic Development takes the second mortga e position, therefore will consider participation after bank financing as been established. Mr. Dale Lungwitz and myself joined the Norw gian representatives and their attorney at a meeting with bank officials from Norwest and First National Minneapolis. The bank officers obtained the company's financial statements and projections, the co any's business plans, the marketing research study and the Twin City t sting results. The banks willing participation in the project will e made approximately by the end of February. Thereafter, will the state acknowledge its participation. The project can be financed fully hrough Norway; however, they would like state/local participation. T e City of Monticello has indicated willingness to reduce the land cos through Tax Increment Finance. However, no commitment regarding t e amount of write down has been made, this contingent with the siz of the project. Please have this remain confidential informati . Metcalf/Larson project . Having talked with Jim Metcalf, Ji in a second elderly project. The that Farmers Home Administration ( combination first floor retail/upp In other words, FmHA funding is Ii not intended for multi-purpose pro a go-ahead with procedures if we h no benefit to the City to purchase Mr. Metcalf indicated they couldn' benefits of TIF or without the app recommends Metcalf/Larson to secur from property owners with the ackn the tool of Tax Increment Financin usable tool by law. The HRA agree to have Metcalf/Larson proceed wit Thereafter, staff also recommended inquiry of the Brenny Gustafson pa a second elderly project. indicated a continued interest omment in regards to funding meant mHA) wouldn't loan monies on a r level elderly housing project. ited to housing projections only, ections. The City Mayor indicates ve a committed project. He sees and demolish the property. make a commitment without the oval of FmHA funding. City staff purchase prices and agreements wledgement from the HRA to use providing TIF would remain a with City staff's recommendation negotiations of acquisition. to request that Metcalf/Larson cels as an alternative site for Low Level Radioactive Waste (LLRW) isposal Facility. . With recommendations from the Indus Grimsmo, Administrator Eidem, and m to the Minnesota Commissioner of th This letter simply signals a commun a regional low-level radioactive wa additional information aimed at ass to pursue development of such a fac Commission benefits package is expe . *An estimated $2 million each y New Jobs: Employment of about payroll of approxima construction, additi created. Volume Tax supporting a special waste accepted at th would raise about $8 local community. Other Income Source: probably be operated which will pay sales Payroll and tax reve the area and, as a s add another estimate local economy. rial Development Committee, Mayor self, I wrote a "letter of inquiry" Midwest Compact Commission. ty's potential interest in hosting te disposal facility and request sting a city in deciding whether lity in their area. The Midwest ted to include: ar in direct and indirect o people with an annual ely $400,000. During nal jobs will also be The Commission is tax on the volume of facility; this tax 0,000 per year for the revenue. The facility will by a private company and business taxes. ue will spread through condary impact, will $800,000 to the *An opportunity to have some 10 al control over the facility. *The potential to attract a nat onal technical center on low-level waste to a host state. Approximately 200 acres of land wil be needed for the Midwest Commission's facility, which will be owned by th host state. Most of it will be used for a buffer zone. An acce table site must meet all of the NRC performance standards which are designed to protect both public health and the environment. Scient sts will study the geology of the site and many other factors. T st wells will be drilled and installed, weather conditions studi d, and a detailed environment assessment prepared. It will be a ong and thorough process. Rather than immediately picking a site, th Commission has decided first to try to find a volunteer communit with land that meets the stringent environmental siting requirements. The HRA agreed to proceed. Since that time, an article in the Montie 110 Times indicated the wright County Commissioners had voted to d ny the low-level radioactive waste disposal facility. Checking ith City staff, I was informed that the county doesn't have jurisd"ction over the City of Monticello. Not with the intent to create a con lict with the County, is it favorable with the IDC to continue with inter st as a possible site for the LLRW disposal facility? I have rec ived additional information, and Monticello remains an intereste party with the Midwest Compact Commission. . HRA Financial Tools . The Monticello HRA has basically us d the financial tool of Tax Increment Finance for the write down of land osts, for public improvements, and for the removal of blighted are s. Today, TIF is still being used; on our Construction Five proj ct the bond term is 20 years at 6~ percent, the interest rate be ng low because bonds for public improvements, under law, are still ax exempt. However, on industrial development, as in the industrial p rk, the bonds issued for this purpose are no longer tax exempt. he tax increment generated by a project remains the same as in th past. However, to make the bond sale more attractive, an estim ted 2 percent is added to the interest rate. The result of this .s the principal amount of the bond issue is reduced and the amoun of interest paid is increased. In other words, you are getting les for your money. Also, not helpful is the maximum ten year life of an conomic district. I'm not suggesting we disband TIF, ut to inform the HRA of other financial tools being used by other communities. A number of small manufacturing businesses have conta ted me with an interest to locate in Monticello. Because of the larg lots in the industrial park and a company's need for a small fa ility (7,000 sq ft), the use of TIF is not an incentive because he project doesn't generate sufficient tax increment to make the package attractive. A start-up company's greatest need for working capital is normally within the first five years of business. First, I look at the possibility for smaller lots in the industrial park; the City recently acquired three lots. However, is the cost to subdivide the lots plus provide streets and additional stubs for water and sew r a viable option. . . I'm aware of a neighboring communi deed (contract for deed or mortgag Example: ~ acre at $10,000, the 1 years. Also, the HRA issues const of the principal for a limited num company remains in business. Exam principal amount of year one and t balance on the loan is $6,000 plus defer payment of the city taxes, 0 others have non-profit development individuals interested in communit these types of incentives, I know community, and soon maybe a third. own the industrial land. Our HRA $30,000 and is scheduled to receiv in 1988. The HRA may begin thinki as incentives, if that's your choi a one-day seminar on revolving loa HRA may choose to do, guidelines a written before any incentive is in are available to help with guideli city attorney. This report is for y who's HRA will grant a warranty deed) to a business. nd payment is deferred for five uction loans with a forgiveness er of years for each year the le: $18,000 construction loan- o or $12,000 is forgiven. Paid total years interest. Some communities hers set up revolving loans, and corporations started by community economic development. Through lost two businesses to another The HRA in some communities also resently has a balance of $20,000- the UDAG repayment from FSI beginning g of ways to use these monies In April, I'll be attending Whatever, if anything, the d limits must be established and tiated. State financial consultants es along with the use of one's information purposes and discussion. Star City Quarterly Meeting . On Wednesday.February 11. 19 7. I attended the Star City Quarterly Meeting in St. Pau. The agenda included Eric Selberg. CEO. NW Bell Mlnnes ta; David Speer. Commissioner. Minnesota Trade and Economic Development; and James Harvey. Executive Director. National Commission on Jobs and Small Business. Commissioner Spee presented Star City certificates to a1153 star cities. Bob tern. retired State Star City Coordinator was recognized. Montice11o-Bi Lake Joint Ai The first meeting was held W the Monticello City Hall. T meeting. Bill King was e1ec as Assistant. Directors are Earney. and Ms. Ollie Koropc Joint Airport By-laws. ort Commission dnesday. February 11. 1987 at e purpose was an organizational ed Chairperson with Tom Eidem Mr. King. Mr. Eidem. Mr. Gene ak. The directors adopted the Data Card Corporation On Thursday. February 12. 19 7. Mr. Dean Whaley. Vice President of Manufacturing; Mr. Jue1 P terson. Production Manager; and Ms. Terry Beattie. Manufacturing Planning Manager for Data Card Corporation along with r. Jim Lushine. Minnesota Department of Economic Development visited Monticello. Their purpose was to view the IXI Complex with the intent of a triple net lease agreement. . Data Card is a world leader serving customers with a br services. The company is t controlled embossing and en and manufacturer of plastic cards. and operates the wor customers who do not proces produces a fu111ine of cred of electronic point-of-sa1e card registration services in the payment systems marketplace ad range of high-quality products and e leading manufacturer of computer- oding systems. the largest printer credit. bank. cash and promotional d's largest service bureau for cards in-house. The company also t card imprinters and a family terminals. and offers credit or1dwide. Data Card employs more than 1.900 people in its operations throughout the world. Reve ues increased 40% to $153.554.000 and net income increased 310 to $10.581.000 in fiscal 1986. After viewing the IXI Comp1 x. we made an extensive tour of Monticello. To consider an option to lease the IXI Complex. first. is to find private investor. however. my perception was the bui1d"ng didn't meet their needs or image. Second option. i build to lease. At this time. I've contacted Veit Constru tion. Winkelman Construction. Construction Five. and Adop son & Peterson. Land options include parcels in Oakwood. Thomas Park. Lauring Hills. Boyle. and Construction Five Addition. . Data Card's expansion wou1 30.000 sq. ft. concrete fa would accommodate office/1 a very clean image. They create 35 jobs. with a proposed i1ity of which 4.000 sq. ft. nch area. The company maintains re considering other locations. . Their timeable is a location 1987 with operations in Marc 23. I will be visiting their the estimated lease options the IDC members who particip visit,they were impressed an they expressed a fine profes of Monticello. Next IDC Meeting The next IDC meeting 1987 at 12:00 Noon. scheduled guest, Mr. decision by August/September of of 1988. The week of February Minnetonka facility and delivering rom contractors. I "thank" ted with Data Card's Monticello enjoyed Monticello. Also, ional presentation by the City is sche uled for Wednesday, March 18, Place t be announced. Tentative Bob Har is of Wrightco Products. Inc. . . RECOMMENDATIONS FOR 1987 IDC GOALS . President Harvey Kendall. Ron H glund. Bruce Gagnelius, and Ollie Koropchak met on Wednesda , January 7, 1987. Five Year Plan Prepare report on comparison f industrial and business growth to other communities w th equal population. Update film on Monticello. Update Labor Survey. (Use of Technical Assistance). Reviewal of City Services for future industrial growth. One Year Plan Business Retention 1. Lunch with speaker or tour. 2. Industrial visits. . Consideration of an Eastboun exist off Interstate 94. Promotions Continuation of Informati nal Pack. Direct mailings Post cards Reward for successful tip on an Industrial Business. Telephone Lines How many lines now? What can we do? . "*~~... . ,..,,IA... .....;~7 .... . . . Montice 10 Industrial Developm nt Committee 250 East Bro dway Monticello, Minnes ta 55362 Phone (612) 29 -2711 January 29, 1987 Win Borden, President Minnesota Association of Commer e & Industry 300 Hanover Building 480 Cedar Street St. Paul, MN 55101 Dear Mr. Borden: The Monticello Industrial Devel pment Committee has set Monday, May 18, 1987, as the te tative date for their Annual Fundraiser Banquet. The purpose of this letter is to invite you as the feature speaker. The banquet will be held at the Monte Club eginning with a 6:30PM social hour and a 7:30PM dinner followed by a program. Past speakers have included Mark Dayton; Donald McCarthy, Chairperson of NSP; and Tom Tr'p1ett, Revenue Commissioner. The $75/p1ate fundraiser is at business persons from within t is concerned about the serious climate, particular with regar compensation. We are looking on MACI's 1987 legislative inv community can most effectively The committee would appreciate possible, on your availability Upon your written confirmation Committee extends two honorary and your guest. If you have a contact me at (612) 295-2711 0 Thank you. Sincerely, (\' r.. \ r-.... . /" (' C' ~~ ~', _ \<.....".C"\. c <s;. L~ 0-/ --- Olive M. Koropchak Economic Development Director cc: File ended by approximately 125 e community. The community ess of the State's business s to taxes and worker's or a motivating speech 1vement and how the get involved in the process. a response, as soon as to speak on this date. the Industrial Development gratis tickets to you ditiona1 questions, please (Metro) 333-5739. ....... .75~:r -~?~ji{j+J' ~-" . Mantic 110 Industrial Developm nt Committee 250 East Bro dway Monticello, Minnes ta 55362 Phone (612) 2 5-2711 January 29, 1987 David Speer, Commissioner Minnesota Department of Energy & Economic Development 150 East Kellogg Blvd. St. Paul, MN 55101 Dear Mr. Speer: . On December 18, 1986, Mr. Donald Smith, Publisher of the Monticello Times, Inc., extende an invitation for you to be the guest speaker at the Industrial Development Committee's Annual Fundraiser B nquet, May 18, 1987. According to Mr. Smith, the inv" ta tion was declined because of the possible rigoros last weeks of State legislation. The committee understands your reason for declining, yet, they are ve y interested in obtaining you as their speaker. Therefor, I'm inquiring about an alternate date, convenient to y ur schedule but within a month of the original banquet d te. Sincerely, 11"".l"l ~u;;;, Please respond to me, as soon as possible, so I can report to the Industrial Deve10 ment Committee. Thank you for reconsidering. \'""'" , \.< c-'" G (7 '-- ''0,. Olive M. Koropchak Economic Development Director cc: File . smCilU~r.r fOR . (co.a.le DlYElOP.UT e. Monticello tlCtmt~. Inc. DOl/old O. Smith, Editor and Publisher 116 E st River Street - Box 548 Montic 110. Minnesota 55362 Phone (612) 295-3131 Publis er of the Monticello-Big Lake Shopper Co-pu lisher of the Road Runner Dec. 18, 1986 David Speer, Commissioner Minnesota Department of Energy and Economic Development 1 50 E. Kellogg Blvd. St. Paul, Minn. 55101 David: From public relations for corporate clients to romoting the State of Minnesota - it seems a likely, and certainly formidable, transition. Co gratulations on being chosen the state's new commissioner! . That's the purpose of my letter-economic dev lopment. I'm writing as a member of the Mon- ticello Industrial Development Committee. My p rpose: To invite you to to be the main speaker, Monday evening, May 18, at the annual fund aising banquet of our committee. But there's a personal attachment, too! We'd ike Nancy to come, too, if she could. We've worked together on Minnesota Newspaper Fo ndation events (most recently a week ago at a Newspaper in Education meeting). I'd like t have both of you visit our community and newspaper office. . . and then attend the ba quet. (For that reason, she's getting a copy of this letter!) We have a proud story to tell on economic evelopment, with firms like Bondhus, Inc., Wrightco, Inc., Northern States Power Comp ny's nuclear plant, and Fulfillment Systems, Inc., located within Monticello. We're awaitin the announcement any day of the plans of our Norwegian friends, who are seriously looki g at establishing Monticello as their base for American H-window production (see enclosed tory). Come and learn more about us, David! Past speakers have included your predecesso , Mark Dayton; Donald McCarthy, chairman of NSP; and Tom Triplett, revenue commissio er. The event is held annually in mid-May at Monticello's Monte Club. I join Mayor Arve Grimsmo and Economic Dev lopment Director Olive Koropchak in making this invitation. Please communicate to me ah r the holidays. You'll remember about five years ago when on Padilla hosted the newspaper foundation at your West Franklin office. At the time, bot you and the Smiths had "daughters" from Northern Ireland. We've continued to be activ in that program and have now hosted youth four of the past six summers. The ten-year-old boy from Omagh, Co. Tyrone, who was with us in '86 is returning for six weeks in 1987. Again, congratulations in your new position. nd I read with interest the merger of the two public relations firms announced yesterday! e Since:-el~', Donald O. Smith, Publisher cc' Nancy Speer, Humphrey Institute 70live Koropchak, Monticello Economic Dev, lopment Director __ __I . . . SERVICE-RELATED BUSINESSES A & D photography A to Z Upholstery Agosto, James - Attorney A-V Room, Inc. American Family Insurance American Legion Post 260 Brenny, Dr. A.T. Bridgewater Telephone Co. City of Monticello David's Photography Eye Specialists Farmers Insurance Group First National Bank of Monticello Fish, Dr. Charles Foster, Franzen & Carlson Insurance Going in Style Great River Regional Library Gruys, Johnson & Assoc. H & R Block Hall, Christopher, D.C. Holker, Kenneth - Attorney IDS/Financial Services, Inc. James & Gruber, CPAs KMOM Radio Lakeland Dental Assoc. Lindquist Funeral Chapel Little Mountain Dental MSI (Mutual Service Insurance) Marlo's Barber & Styling Metcalf & Larson Monticello Americ-Inn Monticello-Big Lake Community Hospital Monticello-Big Lake Community Nursing Home Hart Memorial Medical Center Monticello-Big Lake Pet Hospital Monticello Chiropractic Office Monticello Dental Group Monticello Eye Care Monticello Family Practice Monticello Funeral Home (Peterson/Grimsmo) MonticellO Optical Center Monticello Public School District #882 Monticello Roller Rink Mosford & Barthel Northwest Community Clinic Comfort Inn Professional Approach pumpkin Patch Nursery School River Terrace Trailer Park Security Federal S & L Silver Fox Inn-Best Western Smith, pringle & Hayes State Farm Insurance Taylor Land surveyors The Barbers The country Travel Store The Hair Dresser The Village Salon The U.S. Post Office ITT Financial Services V.F.W. Post #8731 Wright County state Bank YellOW Brick Road Allied Multispecialty Medical Clinic century 21-White Dove II D & D Bus Service Maxwell Realty Edina Realty Riverwood Conference Center Foto Hut frovel, Ciarucoo & AasQc- e SURVEY RESULTS Attendees at the "onticelJo Industrial Committee Banquet ("ay J , 19B6) RANKING Of "AJOR TAXES 8elow is a summary of the ranks assigned to he four major taxes by the six individuals whO returned Questionnaires. Taxes were ran ed according to the severity of their current problems. Tax n Ran in s Av rage FreZuencies ~!L 134 .6 3 1 1 .4 1 2 1 1 .5 I 2 2 I .2 1 1 3 Individual Income 5 Property 5 Sales 6 Corporate Income 5 CO""ENTS . 1I!QL'!'_tQI!a.LJo_~Q.I!!~_~~_~ "I 8elieve both federal and state legisl tors have gone too far In special treament for us senior citizens. I can agree with dou Ie exemptions for age and blindness, since we must hire people to do many tasks that yo nger people do for themselves. However, ( oelieve we Should count 91J. pensions, social security etc. as regular income." "Suggest a 'po~t card' return, i.e.~ rem t 'XI' of fed. (ncome tax due, THEN use your Revenue personnel tor collecting and enforce ent. "Effectively too high! Still too many a ditions and subtractions compared to federal." "Onerous--Is prohibitive and is making cooks out of a lot of people. Your delinquency and enforceability problems woul pay for themselves with a reduction here." properJy_._T~~_;_ "Valuation prOblems of inequitable and s oradic reevaluations of 'older' premises." "Too many tax exempt properties and not nough similarity of home taxes between cities. R.E. taxes are too high! "Not in bad shape at all. Concentrate 0 income taxes, both corporate and personal." Sales Tax: "lower rate to 3 or 41, but apply it to verything--food, clothing, etc." "Oon't even think about taxing professio,al services, i.e., medical, CPAs, attys, et c . " - ~ .-. .t. "Should have one rate and thus less acco nting and calculating confusion." ""ake more uniform. Eliminate food/clot ing/shelter--all items. Then across the board, ~AI_S~ the rest of the sa I es taxes." ~orp_qgte J~.c.l?_m!J~~_:_ "Make US compet i t i ve! ! !.. "Hust lower or we won't have any employe 5 or jobS left in this state."