IDC Agenda 04-17-1986
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AGENDA
INDUSTRIAL DEVELOPMENT C MMITTEE MEETING
Thursday, April 17, 986 - 7:00AM
City Hal
Members; Chairperson Ron Hog1 nd, Don Smith, Shelly Johnson,
Arve Grimsmo, Dale L ngwitz, Harvey Kendall, Bud
Schrupp, Jay Morrell Joel Winkelman, John Bondhus,
Bruce Gagnelius, Tom Eidem, and Ollie Koropchak.
1. Call To Order.
2. Approval of the March 19, 986 IDC Minutes.
3. Update on Industrial pment Banquet.
4.
Airport
Det Scandinavisk
Pyro Industries,
Industrial Freew
Reports:
5. Other Business.
.
6. Adj ournmen t .
.
Vinduscompaniet A/S
Inc.
y Sign
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MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE LUNCHEON MEETING
Wednesday, March 19, 19.6 - 12:00 Noon
Oakwood Inn - The Tre Lounge
Members Present:
Chairperson Ron
Shelly Johnson,
Winkelman, Harve
Ollie Koropchak.
oglund, Bud Schrupp, Arve Grimsmo,
ale Lungwitz, Jay Morrell, Joel
Kendall, Bruce Gagnelius, and
Members Absent: Tom Eidem, Don Sm.th, and John Bondhus.
1. Call to Order.
Following the lunch served by
called the IDC meeting
Kruse, Chairperson Hoglund
2. Approval of Minutes.
A motion by Arve Grimsmo, see nded by Harvey Kendall and unanimously
carried. approved the Februa y 20, 1986, IDC Minutes.
3.
Pyro Industries, Inc. Report.
Accepted. Koropchak informed
telephoned ten minutes prior
Carlson said after talking wi
to find another source for a
.
4.
Star Cit
Accepted. Koropchak informed
would be mailed to the State
or before March 31, 1986.
the Committee that Mr. Carlson had
o leaving for the meeting. Mr.
h Dave Peterson, he was proceeding
ank loan.
rt.
the Committee the written report
conomic Development Division on
5. Consideration of Reviewin Industrial Develo ment Freewa
Sign Design.
Dale Lungwitz reported Lot 6 n the Oakwood Industrial Park may
be purchased and suggested the installation of the industrial
sign be moved about 50 feet to the east on the City property
line. A couple evergreen trees may need to be cut down.
Mr. Johnson reported up to f
sign and still have readibil
A Star City for Your Industr
Kendall motioned to use the
for Your Industry" plus impr
Seconded by Bud Schrupp and
urteen words can be placed on a
ty. He also suggested, "Monticello -
" as the wording choice. Harvey
ording "Monticello - A Star City
ved sites - 295-2711 for the sign.
assed unanimously.
6. Consideration of Ticket Dist bution for the Industrial Develo ment
Banquet.
Jay Morrell reminded the co ittee that following last year's
banquet. Don Smith had sugge ted the possibility of using trained-
inhouse personnel to sell ti kets. A commission for each ticket
sold would be applied.
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IDC Minutes - 3/29/86
It was the concensus of the comm ttee that a subcommittee of
Ron Hoglund, Don Smith, and Olli, Koropchak meet regarding this
issue. A commission of $5.00 an not more, was set as a limit
I
per ticket sold. Use of the pre ious accompanying letter could
be determined by the subcommitte'. Mr. Lungwitz suggested that
the inhouse seller should mentio "They are selling on behalf of
........., to avoid the feeling 0 disbandment by the previous
seller. If the idea of inhouse elling does not formalize a
special IDC meeting is to be called. Ticket distribution is
targeted for April 1, 1986.
.
Tickets are set at $75.00 each.
no bar tickets will be used, an
dinner. One after dinner drink
oeuvres $2.00/person, all bar d
$1.75/ea., and wine $l.OO/ea.
An open bar will start at 6:30PM,
the bar will be closed during the
is included. Prices are hore d'
inks and beer $1.50/ea., top shelf
The dinner will start at 7:30PM with the choice of lobster ($12.95/plate)
and New York Steak ($lO.95!plat). The menu includes coffee, fresh
bread, a salad, and a baked po ato. The price does not include
gratuity. A montage willbe pre ented to Mayor George Latimer.
Koropchak reported she had rece ved a telephone confirmation from
George Latimer's office. He wi 1 be guest speaker at the IDe
Banquet, May 19, 1986, at the M nte Club. The IDC guest list is
to be determined by the Economi Development Director.
.
7.
Other Business.
Dale Lungwitz requested that i
right for comment on a matter
be on record that he reserves the
t a later date.
8. Adjournment.
Concensus of the committee was to adjourn.
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Olive M. Koropchak
Executive Secretary
Monticello Industrial Development Committee
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IDC Agenda 4/17/86
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3. UPDATE ON INDUSTRIAL DEVEL PMENT BANQUET.
A. At this time, I assume' most ticket sellers have made
some initial contact ~ th potential banquet participants.
On April 2, gratis tic ets and invitations were sent
to: Eldon Brustuen
Bob Stern
Senator Betty dkins
Representative Bob McEachern
Representative Gerry Sikorski
Dick Wright
Floyd Markling
Erik Fjerdingstad
Odd J~rgensen
Roald Starhei
Please return ticket donations and named participants to
Bud Schrupp.
B. A Minnesota montage h s been ordered from Lynn Smith.
Linda Smith has been ontacted for a floral arrangement.
Wright Cable TV will e contacted for taping.
C.
For your information,
from the Industrial M
date for Latimer to s
Mr. Bidwell to inform
Banquet speaker. Mr.
a different group of
answer/question meeti
received a letter (see enclosure)
nagers Club. They have a confirmed
eak on May 30th. I telephoned
him that Latimer was also the ID
Bidwell said his audience would be
eople and was structured as an
g.
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~eMmerica
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CORPORATION
218 Chelsea. Monticello. MN 55362 . 612/295-4 75
April 4, 1986
Dear Industrial Manager:
In the process of findi
Managers Club meeting, I wi
previously scheduled.
The speaker I have foun
Latimor. The earliest time
speak was Friday, May 30, 1
businesses in Minesota.
a speaker for the Industrial
have to change the date
will be St. Paul's Mayor
I could schedule him to
86. He will discuss small
Within ten days his off ce will contact me to confirm
the appointment. After con ormation, I will send another
letter stating exact time, ate, place, etc. . .
Sincerely,
w~lI
Wayne H. Bidwell
vlb
* SERVING THE NEWSP PER INSERT MARKET
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AIRPORT SUBCO ITTEE
Members present: Bill King, om Eidem, Jack Peach, Harvey
Kendall, Da e Peterson, and Olive Koropchak.
Member absent: City of Becke representative.
The Airport Subcommittee met
AM at Perkins. Preliminary d
with a 3;500 foot or a 4,000
Subcommittee. Jack Peach que
runway met instrument approac
a 500 foot over-run on each e
concensus was a 4;000 foot ru
airport can handle small jets
ednesday, April 2, 1986, 7:30
awings for the proposed airport
oot runway was viewed by the
tioned if the length of the
requirements and if it includes
d of the runway. The subcommittee's
way plus over-run. This size
(corporate planes, 8-10 passengers).
subcommittee set two goal
1. Koropchak is to call innDot/Aeronautics Division,
Steve Luck for an aerial -bservation of the desired location
of the improved airport. (Northwest corner of Highway 25
and Sherburne County Road 81). Mr. Peach and Ms. Koropchak
will meet with Mr. Luck f llowing his observation.
The
2. Mr. Eidem and Mr. Kin will search out attorneys for
the subcommittee to inter iew on April 11, 1986. The
attorney's duties include the preparation of the joint-
powers agreement (rules a d bylaws). Concensus of the
subcommittee was the atto ney should be independent from
other interests of the pa ticipating cities. Consideration
of the recommended attorn y shall then be presented to
the individual city counc.ls by the City Administrators.
Monticello Council meetin; on April 14th and Big Lake
Council meeting on April lth.
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IDe Agenda - 4/17/86
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4. REPORT: Airport
1. Mr. Luck requested Ko opchak to send a preliminary
aerial view of the propos d airport and site to the
Aeronautics Division befo e they consider an aerial
observation. Information was mailed April 11, 1986.
2. Mr. Eidem is in the p ocess of contacting attorneys,
however, time did not per it interviews on April 11.
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IDC Agenda - 4/17/86
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4. REPORT: Det Scandinaviske Vinduscom aniet A/S.
A. Det Scandinaviske Vind, scompaniet is a Norwegian
company who produces the H window. The Company's first
contact with Monticello wa, approximately H years ago.
In February of 1986, Erik' jerdingstad, Odd J~rgensen, and
Roald Starheim met with Ma or Grimsmo, Tom Eidem, and
myself. At that time, the company requested confidentiality.
Mr. Fjerdingstad returned to Minnesota on April 5. He
has been in contact with t e Minnestoa Trade Office, Minnesota
Department of Economic De e1opment, and the World Trade Office.
Mr. Fjerdingstad has look d at four other cities; Lakevi11e,
Maple Grove, Chaska, and elano. Upon this visit, I have
met with Mr. Fjerdingstad on four different occasions. Mr.
Fjerdingstad has visited he Bondhus Corporation, met with
a local carpenter, Michae Bregenzer, toured Monticello and
the Industrial Parks, and had dinner with some of the ID
members. Information pre ared for Mr. Fjerdingstad's
return trip home was a Ta Increment Proposal, the Monticello
Economic Development Plan with Industrial Park maps, the
Monticello video tape, a ist of manufactures for needed
production equipment, and a packet prepared by the Monticello
Times.
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The three gentlemen may r turn to Minnesota in May and would
also attend our ID Banque, .
The company is looking to construct a 30,000 square foot
concrete wall manufacturi g facility on approximately 4-5
acres. The company would be flexible to accommodate high
quality and a specialized product. They plan to make a
decision in December of t eir location in Minnesota and go
ahead plans. Estimated n mber of employees would be 20-25
in phase I.
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IDC Agenda - 4/17/86
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4. REPORTS: P ro Industries, Inc.
A. Mr. Tim Carlson notifi
to expand in the State of
the Washington decision wa
State of Minnesota. I hav
report.
d myself of Pyro Industries' plans
ashington. His main reason for
the run around given by the
asked Mr. Carlson for a written
A. Information for the p oposed freeway sign has been given
to Jeff Hoglund. I await preliminary drawings and new
estimated costs.
REPORT: Industrial
.
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THE ~ R VOLUnOIlARY
Whl ield
PELLET-BURN IIG STOVEI
4/14/8
Olive M. Koropchak
Economic Development Director
City of Montecello
Montecello, Mn. 55362
Dear Olive;
As a follow up to our phone coversa ion of the other day. I would
like to take this opportunity to tank you for the consideration
shown us over the past several mont s and to clarify why we have
made our decision to expand in Seat le,Washington rather that in
Montecello, Minnesota.
I would want to emphasis
all parties involved, and am of th
the City of Montecello as well as t
put this package together within t
with. All parties involved were as
received very courtiously by
opinion that everyone from
e State of Minnesota tried to
e frame work they had to work
elpfull as they could be.
The main factors involved in our de ision were as follows.
1. Lack of interest from local ba k in our project.
2. Unrealistic criteria for qualification for program.
note: In order to qualify for $250,000 loan we would have
needed to come up with a minimum of $500,000 from other
sources. If we could do that we wouldn't need the loan.
3. High cost of Workers Compensation in Minnesota.
4. High cost of Unemployment Insurance in Minnesota
While there were other factors these were the main ones.
The only area that I would express
it would appear that the State is
the same basic criteria for pro
Banks are historically and p
conservative in their lending poli
the same criteria there abilit
limited at best. I understand the
mattters. There needs to be a gro
at a project at its onset; jud
involved of realistically availabl
necessary red tape to implement th
real unhappiness with, is that
eally just another banker with
ram qualification as a bank.
obably of necessity very
ies. As long as the State uses
to create jobs will remain
need for prudence in financial
p of true experts who can look
e its merits, inform those
programs and work through the
se programs.
PYRO INDUSTRIES · 7570 MARKET PLAC DRIVE' EDEN PRAIRIE. MN 55344 . (6121829-0541
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It would cost our company close to
to do business in Minnesota than i
cost of the move.> When all the fa
real off-set to this. A low inte
all of your assets on the first g
you are left without the ability t
the need arises. In short it giv
yourself.
$50,000 dollars more per year
Washington, <not counting the
ts were looked at there was no
est loan helps but by tying up
arround as these programs do,
raise additional capital when
s you just enough rope to hang
In general we feel that the progr ms the state has to offer are
well intentioned, but of little or no value in the real world.
They're fine for the General Motors of this world, who can float
bond issues, but of little value for the small to mid-size
company. !
With the help of the State of Washington we were able to raise
the necessary capital needed for our present expansion. Our
present plan is to possibly look at doing something in the
Midwest within the next 12-24 months. We are currently growing
faster than our projections indicated and hope to surpass
$2,000,000 in sales this year and $5,000,000 in 1987. This would
leave us with about 40 new employees in Washington and with a
real need for a second plant more centraly located.
With a little luck the business limate in Minnesota may improve
by then. We would like to keep the door open to examine our
options with you at that time.
Thank you again for your courtesi~s.
~~;<-~ -
Timoy R. Carlson; Executive Vic~. President
Pyro Industries Inc.
TRC:cc
cc:Tom Eidem
'~~J/ ~~~7' .
U~-~ e;,.
INQUIRY NO.
~
DATE t; - /6-'?? {;
TERMS
, JEFF HOGLUND SIGN
'. Rt. 1, Box 210
~onticellol MN 55362
DELIVERY
PRICES QUOTED ARE FO.B.:
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( WIT II l).f 4'0 bAys: m ~)CTl(j;;)
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TOPS" FORM 3448
LITHO IN U.S,A.
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ANOKA . MONTICEL 0 · ELK RIVER
'.
READY MIX
P.O. BOX 307, ELK
Karch 18, 1986
Olive Koropchak
Economic Development Director
City of Monticello
250 East Broadway
Monticello, MN. 55362
.
Dear Ollie,
I want to go on public record
of the letter that you wrote p
site selection at the Oakwood
great deal of time and conside
your letter and followed prope
Tom and Rick's approval.
~
441-2800
IVER, MN 55330
hat I waS very much in favor
rtaining to the recent school
ndustrial Park. You took a
ation prior to the writing of
channels in securing both
~Jhile it is not easy to endure poli tical pressures in a
small community, one must make decisions to the best of
their personal and professiona knowledge. I commend you
on the action that you took an trust that all things will
work out for the best.
Sincerely,
~?I Ct.'2/u t(j
.<<...
/7 c
ye &.-:1 '
Jay C. Morrell
Box 477
Monticello, MN.
55362
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