IDC Agenda 08-20-1992
.
.
.
AGEN A
MONTICELLO INDUSTRIAL ,EVELOPMENT COMMITTEE
Thursday, August 2Q, 1992 - 7:00 AM
City all
MEMBERS:
Chairperson Shelly Johns n, Vice Chairperson Don Smith,
Treasurer Ron Hoglund, L well Schrupp, Arve Grimsmo, Jay
Morrell, Harvey Kendall, Dennis Taylor, Linda Mielke, Ken
Maus, John McVay, Dave Peterson, Kevin Doty, Merrlyn
Seefeldt, Steve Lemme, om Lindquist, Cyndie Johnson,
Candy Benoit, and Mary ieke.
STAFF:
Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE ULY 16, 1992 IDC MINUTES.
4.
3. CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT.
CONSIDERATION OF INDUSTRIAL P OSPECT UPDATE:
a) Q-A Thermal Processing, nc.
b) Steinwall, Inc.
c) Others
INDUSTRIAL PROJECT UPDATE:
a) Aroplax Corporation
b) Suburban Machine and Man facturing, Inc.
c) Eric Bondhus
BRE PROJECT UPDATE:
a) Remmele Engineering
b) Sunny Fresh Foods, Inc.
5. CONSIDERATION TO HEAR AND AUTH RIZE IDC MARKETING SUBCOMMITTEE
RECOMMENDATION.
6. CONSIDERATION OF IDC FUNDRAIS R BANQUET PLANS:
a) Ticket distribution plan
b) Speaker and program
7. CONSIDERATION OF ECONOMIC DEV LOPMENT UPDATES:
a) Metro Phones
b) Farm Credit Auction
c) 1992 All-Star Award and tar City Conference
8. OTHER BUSINESS.
9. ADJOURNMENT.
.
.
.
MINU.ES
MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE
Thursday, July 16, 1992 - 7:00 AM
City all
MEMBERS PRESENT:
Vice Chairpe son Don Smith, Ron Hoglund,
Harvey Kendal, Dennis Taylor, Ken Maus, Dave
Peterson, Kev n Doty, Steve Lemme, and Mary
Micke.
MEMBERS ABSENT:
Shelley Johnso , Lowell Schrupp, Arve Grimsmo,
Jay Morrell, Linda Mielke, John McVay, Tom
Pogatchnik, Mel rlyn Seefeldt, Cyndie Johnson,
and Candy Benoit.
STAFF PRESENT:
Ollie Koropcha .
STAFF ABSENT:
Rick Wolfstell r and Jeff O'Neill.
1. CALL TO ORDER.
Vice Chairperson Don Smith ca :led the IDC meeting to order at
7:07 AM.
2 .
CONSIDERATION TO APPROVE THE UNE 18 1992 IDC MINUTES.
Ron Hoglund made a motion to approve the June 18, 1992 IDC
minutes, seconded by Harvey K ndall, and with no additions or
corrections the minutes stand approved as written.
3. CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT.
Treasurer Ron Hoglund report d a Wright County State Bank
balance of $487.57 and a Security Financial balance of
$2,541.80 for a total of $3,02 .37. With one disbursement the
current balance reported was 3,007.42. Harvey Kendall made
a motion to accept the IDC fin ncial report, seconded by Steve
Lemme, and without further com ent the report was accepted and
filed as given.
4.
CONSIDERATION TO ACCEPT IDC M MBERSHIP RESIGNATION FROM TOM
POGATCHNIK AND CONSIDER REPLACEMENT RECOMMENDATION TOM
LINQUIST.
Koropchak reported that per a telephone conversation in late
June, Mr. Pogatchnik asked t resign as an IDC member and
suggested Mr. Tom Lindquist as is replacement. Mr. Lindquist
1s available for the Thursday morning IDC meetings which was
a conflict for Mr. Pogatchnik. Vice Chairperson Smi th
recalled Mr. Lindquist past e perience on the IDC as a past
president of the Chamber of ommerce. Ron Hoglund made a
motion to accept the resignat'on of Tom Pogatchnik and the
.
.
.
IDC MINUTES
July 16, 1992
replacement of Tom Lindquist
seconded by Kevin Doty and
motion passed animously.
The motion was
discussion the
s an IDC member.
i thout further
5.
CONSIDERATION OF PUBLIC HEARl G NOTICE DATE FOR THE MINNESOTA
ECONOMIC RECOVERY GRANT APPLI' ATION FOR AROPLAX CORPORATION.
Koropchak informed the IDC th~t a public hearing was scheduled
for Monday, July 27, 1992, 7: 0 p.m. at the City Council for
the Ci ty of Monticello I s fundi g application to the Department
of Trade and Economic Develo ment on behalf of the Axoplax
Corporation. The public he ring is a requirement of the
application process necessary, or the requested $170,000 which
would be a grant to the cit , who in turn, would loan the
monies to Aroplax at a 6% in erest rate over 10 years. The
City has the right to retain he first $100,000 principal and
interest payback and the rema.ning payback portion returns to
the State. The State fundin is the last of six sources of
funds to be sought in the tot 1 $1,030,000 Aroplax financial
package. Other sources of fu ds are the Bank, Small Business
Administration (SBA), Tax Inc ement Financing (TIF), Central
Minnesota Initiative Fund (CMIF), Greater Monticello
Enterprise Fund (GMEF), and quity. The IDC questioned the
amount of equity into the p oject and the likelihood of a
potential concern by City Cou cil. Pending the execution of
the Private Redevelopment Contract between the Schoens and the
Housing and Redevelopment Aut ority, it is expected that the
State application will be sub itted on July 28.
6.
CONSIDERATION OF PROSPECT UPD
a) Suburban Machine & Ma ufacturing, Inc. Koropchak
reported that the fundin sources for this project are in
process. The CMIF final pplication will be submitted to
the Board following the J ly 21 Council's adoption of the
resolution relating ther of and the approval of the GMEF
loan. The creation of the TIF District No. 1-14 and
final plat approval are expected at the August 10 City
Council meeting. The to al project funding is $325,000.
b)
Q-A Thermal Processing, Inc. - Koropchak reported that
Richard Darst and Ed Ba cikowski of Q-A Thermal, Bill
King of BDS, Inc., Kevi Doty of Wright County State
Bank, Tom Golewski of Sh"ngobee, Inc. and Koropchak met
on June 24, 1992. Discu sian centered on the need for a
$50,000 line of credit in addition to the $100,000
equi ty. The $150,000 w uld serve as the four to six
month interim financing n cessary between the acquisi tion
Page 2
.
IDC MINUTES
July 16, 1992
.
.
of the exclusive heat-tr ating license and the completion
of a facility with opera ional equipment. Acquisition of
the license is a key issue as this captures the
established market of th Upper Midwest. Acquisition is
expected August 1. And second, the meeting discussion
centered around the Cit and Mr. Golewski marketing the
Shingobee/TIF Pre Plan. Late~another meeting with Mr.
Golewski, his techni al personnel, and company
representatives was held to further outline the specifics
of the building.
Kevin Doty informed the IDC that he again met with the
company representatives to further define the timelines
and financial commitmen s associated with the license
acquisition and the eed for additional financial
information. Although, his maybe a start-up company the
positive aspects are the company representatives who will
be directly involved in the day-to-day operations bring
a total 60 years of e perience in the heat-treating
process, in addition, t the potential of obtaining an
established captive mar et.
c)
Agricultural Product Ma ufacturer - Koropchak reported
that Ron Hoglund, Ha vey Kendall, Al Larson, Mr.
Stockwell, and Koropch k met on June 26 to further
discuss the nature of his company's business and its
production process. A c mmunity commitment of interest
from the city was promi ed Mr. Stockwell by the 8th of
July, this to follow af er consideration by the HRA at
their July meeting. The results of the HRA meeting were
consistent with the IDC' concerns and were highlighted
in the enclosed letter addressed and mailed to Mr.
Stockwell.
d)
Steinwall, Inc. Koropchak said she, herself, had
nothing new to report of the company; however, reported
in Cyndie Johnson's abs, nce that Steinwall's recently
hired out-of-state plant manager and his wife were at the
Chamber office for in ormation and referred to the
company's planned move to Monticello.
e)
Sporting Goods Distribution - Koropchak reported the
difficulty of speaking d rectly to the company's owner as
the phone calls are n t returned and the building
security does not allow ntrance without an appointment.
John Michaelis and Rand Havel were the original local
contacts on this lead.
Page 3
.
.
.
IDC MINUTES
July 16, 1992
7. CONSIDERATION TO DISCUSS POTE TIAL GROUNDBREAKING RECEPTIONS
AND BRE EXPANSION RECEPTIONS.
The committee agreed to use te same groundbreaking reception
format as used in previous ye rs with Koropchak coordinating
the event between the company and the IDC. It is anticipated
that the Barger and Schoen gr undbreaking will take place in
August. Koropchak will mail invitations to guests and within
the program include comments y Mayor Maus and IDC President
Johnson.
Additionally, the IDC briefly discussed the need to recognize
the Remmele 10,000 expansio scheduled for completion in
September/October. It was s ggested that Koropchak contact
Remmele officials to check on their plans for an open house.
8. CONSIDERATION OF A FOLLOW-UP ON THE DEVELOPMENT OF A FARM
CREDIT PRELIMINARY PLAT PLANS
A tentative date of Tuesday, September 15, 1992, has been set
for the Farm Credit Land Auc ion. At this time, it appears
that the approximate 100 acres of BC/II property along Chelsea
Road will be described as 1 -18 individual tracts for the
purpose of the auction. T e ci ty had hoped to have a
preliminary plat prepared wh ch identified a road easement
through the parcel to the sou h of Chelsea Road, as well as,
easements for storm water pond, with the final plat review and
approval following the aucti n. However, Farm Credit only
sees the need for a site pIa prior to the auction and will
consider the plat process thereafter. Mayor Maus said, "That
Rick Wolfsteller would appreciate a recommendation from the
IDC" and questioned the legali y of a purchase agreement C:l1:l6C: ~\....s'5>
"subject to city whatever" wi h no title of property.
Kevin Doty mentioned that Agri Bank is not in the business of
holding land titles and, gener lly, they are not involved with
properties which lie wi thin i ty limits which may explain
their lack of understanding for the need of easements, etc.
Koropchak said she agreed wit. Farm Credit personnel that it
was highly unlikely that an 'ndustry would purchase a tract
for the purpose of developme t but that tract(s) would be
purchased by investors/develo ers. Koropchak again expressed
her concern: Will Monticello have an adequate amount of
readily available industrial 1 nd which is both affordable and
immediately accessible?
Page 4
.
.
.
IDC MINUTES
July 16, 1992
9. CONSIDERATION OF SUBCOMMITTEE REPORTS.
a) BRE Subcommittee Reports - Koropchak reported that she
had made a courtesy ca 1 to Andy Anderson of Rainbow
Enterprises and talk to Mike Pudil and Joel LaValle of
Remmele Engineering reg rding the Suburban Machine <<
Manufacturing, Inc. development in Monticello. All three
companies are classif.ed under general machining;
however, have various ni hes and are of various degrees.
It was suggested to Kor pchak to resubmit to committee
members the original Ii t of assigned companies as a
reminder of their task. ,It was also noted that Key Tool
I
of Big Lake is listed fo sale.
b) Marketing Subcommittee Meeting Koropchak reminded
members of this subcommi tee of the upcoming meeting on
July 21.
10. OTHER BUSINESS.
c) Local BRE Subcommittee - Tabled.
Committee members were reminde, of the Chamber meeting at noon
at the American Legion.
11. ADJOURNMENT.
The IDC meeting adjourned at :20 AM.
Q) Sl Q .' L "< ~ e E;:9-~
Ollie Koropchak, IDC Executive Dir ctor
Page 5
-
.-
LAND A
CTION
BARE LAND
DEVELOPMENT
POTENTIAL
.
200 ACRES OFFERED
IN 28 T ACTS
COMMERCIAL 81. RES DENTIAL ZONING
( B-C, B-2 81. R-PUD )
DEVELOPMENT POTENTIAL
.
MONTICELLO
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333~5739
Fax: (612) 295~4404
1992 ALL STAR AWARD
Submitted by the City of Monticello
on behalf of the Industr al Development Committee,
the Star C ty Commission
.
"The Development and Adoptio of the Chelsea Land Use and
Circulation Study/Conceptua Area Plan and the Amendment
of the City's Comprehens ve Plan/Zoning Ordinance"
Augus , 1992
Ollie Koropchak, Econo ic Development Director
.
.
.
.
The Monticello Industrial Development Committee (IDC),
traditionally and currently, is the community's leading
organization in economic deve opment. The original commi ttee
coordinated the efforts of Monticello's Star City designation in
1982; and today, this eigh een-member volunteer commission
maintains their leadership rol through a proactive approach in
problem identification and pIa development necessary for making
positive changes. The IDC was tte backbone organization behind the
development and adoption of th Chelsea Land Use and Circulation
Study/Conceptual Area Plan ar.d the amendment of the City's
Comprehensive Plan/Zoning Ordinnce.
WHY WAS/IS IT SIGNIFICANT TO
DEVELOPMENT EFFORTS?
As a point of reference, the Ci y of Monticello lies northwest of
the Twin Cities; and with the cOlstruction of Interstate 94 during
the sixties and seventies, the c mmunity has witnessed a continued-
growth pattern. The City, geogr phically, is bound on the north by
the Mississippi River; therefo e, any future major developments
must now occur to the south of nterstate 94.
The Chelsea land area is south f Interstate 94 and east of Trunk
Highway 25, and encompasses appr ximately 1,000 acres. The adopted
plan and ordinance was significant to Monticello I s development
efforts because without the availability of accessible industrial
land for development, the community had no tool for assurance of a
di versi f ied tax base. Secondl. the plan and ordinance became
necessary to establish a non-conflicting land use plan. This
became of greater significance ith the acquisition of lands for
the proposed 129-acre School Di trict campus development and the
proposed 135-acre residential de elopments to the south and east of
the 115 programmed industrial a ea along the freeway. Next, the
plan was important because of the need to determine a
transportation plan and storm s wer management program to support
the area and proposed developmen s. And lastly, the ordinance was
significant because of the eed to control or develop an
aesthetically-pleasing industrial area. This a concern raised by
the existing neighborhood busin sses and discovered through the
local Business Retention and Exp nsion (BRE) Program.
HOW DOES THIS RELATE TO YOUR
OMIC DEVELOPMENT PLAN?
The development and adoption the Chelsea Land Use and
Circulation Study/Conceptual Ar a Plan and the amendment of the
City's Comprehensive Plan/Zoning Ordinance has a direct
relationship with the City's 199 Economic Development Work Plan.
The Economic Development Work PI n consists of five objectives, of
which one states: liTo maint in and assure that the city's
infrastructure adequately meets development needs. II Under that
objective nine tasks were lis ed, of which Ol1e states: "To
continue to encourage the appro al of the Chelsea Land Use and
Circulation Study/Conceptual Are Plan and Ordinance as prepared by
Northwest Associates, Inc. II T e study was completed and the
plan/ordinance amended in 1992. Other 1992 tasks implemented were
.
.
.
1992 All-Star Award
Page 2
the endorsement the City's Ordlna ce to maintain control of the
aesthetic value of the industr al park and sites, and the
endorsement and participation by t e IDC of the local BRE Program.
WHAT ARE THE SHORT AND LONG-TERM E
Through the 1992 amendment of the 1918 Monticello Comprehensive
Plan/Zoning Ordinance, the City of Monticello has an updated guide
for future development which refl ets the following short and
long-term effects. First effec, the amendment preserves an
additional 180 acres of industrial and for immediate and/or future
development, thereby providing Man icello with the future ability
to maintain a diversified tax base Next, of this 180 acres, 100
acres was zoned Business Campus (B ) to serve as a buffer between
the School Campus and the develope Oakwood Industrial Park. The
zoning requirements were design d to encourage an up-scale
industrial park through more string nt requirements in the areas of
construction design, landscaping, deeper setbacks, and evergreen
plantings. The BC Zone provides onticello with the ability to
market alternative industrial-zone land options: BC (up-scale),
Light Industrial, and Heavy Indu trial. Thirdly, the adopted
transportation plan becomes a uide for the City's capital
improvements. School Boulevard, th first leg of the plan, will be
completed in 1992 with the constru tion of collector and frontage
roads, a freeway interchange, and a bridge crossing in the future.
The plan supports the elimination of the current congested areas
and manages the future traffic low of the Chelsea area and
adjacent lands. Fourth, the storm sewer management plan improves
the City's ability to respond to evelopment proposals. And the
last effect, the plan allows the C ty time to investigate various
financing methods including State ighway aid.
WHO WAS INVOLVED?
The IDC originated the need for the study/plan concept through the
1991 Economic Development Work Plan and continued to endorse the
completion of the study/plan conce t and plan/ordinance amendment
in the 1992 Economic Development W rk Plan. Several meetings were
held between the Ci ty' s staff a d engineer, various property
owners, community boards, and comm ssions. For example in June of
1991, a joint all-governmental (Sc,ool and City) meeting was held
at the NSP Training Center to define initial plans. Approximately
sixty people attended. Thereafter, City Council authorized City
staff to work wi th Northwest As ociated Consul tants and 01'1'-
Schelen-Mayeron & Assopiates for de elopment of a study/plan. The
completed study/plan was reviewed by the IDC, the Housing and
Redevelopment Authority, the Econo ie Development Authority, the
Planning Commission, the City Counc 1, and the School Board. After
public hearings were held, the City Council amended the City's
Comprehensive Plan and Zoning Ordi ance in the spring of 1992.
.
.
.
SUMM RY
MARKETING SU COMMITTEE
FOR HE
MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE
Tuesday, July 21, 1992 - 8:00 AM
City all
MEMBERS PRESENT:
Don Smith,
Seefeldt.
MEMBER ABSENT:
Dave Peterson.;
STAFF PRESENT:
Ollie Koropch k.
BACKGROUND INFORMATION
Micke, John McVay, and Merrlyn
1992 Proposed IDC Budget for Marketing: $1,500
Recap of Monticello current arketing material:
1989 Monticello logojb ochuresjteasers funded by the
City.
1991 Monticello, A Litt e Mountain of Big Opportunity
Video. City, $2,000; NSP, $1,175; IDC, $1,275; BDS,
$250.
Annually, Community Prof Ie, printed by the Department of
Trade and Economic Deve opment, at no direct cost.
1990 Monticello, Your Kind of Place. Banners, posters,
billboard, buttons, and t-shirts. Chamber of Commerce.
Monticello assets: Freeway (Location)
Availabl Labor Force
Available Land with Utilities
Financia Incentives:
Local - Revolving Loan Fund
TIF
Other ~ SBA
Regional Funding
State Funding
Fin ncial Packaging
Prep re Loan Application
COMMITTEE DISCUSSION
Monticello assets: Small tow living (friendliness)
?(Sun in your back)
?(Metro Pones)
About ten years ago the
publications wi th no direct
success stories.
city or committee advertised in
resu ts of industrial inquiries or
.
.
.
MARKETING SUBCOMMITTEE SUMMARY
July 21, 1992
Page 2
Surrounding communi ties who adver:tise: Buffalo, Elk River, and
Maple Grove. Buffalo must have he! ty budget to advertise in color
in the Corporate Report.
Marketing Committee Objective: G t Monticello's name out.
Need more money than $1,500. pos ible $3,000 to $5,000 range.
Six month promotion in 2 or 3 jou nals.
Reviewed the following journals:
Corporate Report Minnesota
Minnesota Real Estate Journal
Business Media
City Business
Recommendation: The committee ecommended
Estate Journal and Business M dia (North
readership, cost, and city advert sements.
the Minnesota Real
Metro) based on
Corporate Report, cost prohibi ti e, and Ci ty Business, no ci ty
advertisements.
Develop partnership to share expen e: Industrial property owners or
others of vested interest: Hog I nds, Oakwood Partnership, John
Gries, Shingobee. Utilities: NS use of logo.
Recommendation to IDC: For the
for marketing and/or to authorize
owners or others of vested inter
month marketing campaign beginnin
journals.
Focus: Industrial Development.
DC to authorize a $4,000 Budget
olicition of funds from property
st for a total of $5,000. Six
in October using two or three
Don Smith will talk to Chamber A vertising Committee of interest
for a broader prospective (retail commercial.)
Based on the IDe authorization, t ereafter, will Koropchak either
prepare and mail a solicitatio letter to parties of vested
interest or the committee will di band with Koropchak handling the
advertisement.