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IDC Agenda 07-21-1992 . . . AGEN A MARKETING S BCOMMITTEE FOR T E MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE Tuesday, July 21, 1992 - 8:00 AM City all MEMBERS: Don Smith, Dave Peterson, Mary Micke, John McVay, and Merrlyn Seefeldt. STAFF: Ollie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO REVIEW VARIOUS JOURNALS FOR POTENTIAL LOCAL ECONOMIC DEVELOPMENT ADVERTI EMENTS. 3. CONSIDERATION TO INVITE TWO TO THREE JOURNAL REPRESENTATIVES TO AN UPCOMING DESIGNATED MA KETING MEETING FOR PRESENTATION OF OPTIONS WITHIN IDC MARKETt G BUDGET. 4. OTHER BUSINESS. 5. ADJOURNMENT. 4It AGEN A MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE Thursday, July 16, 1992 - 7:00 AM City H 11 MEMBERS: Chairperson Shelley John on, Vice Chairperson Don Smith, Treasurer Ron Hoglund, L well Schrupp, Arve Grimsmo, Jay Morrell, Harvey Kendall, ennis Taylor, Linda Mielke, Ken Maus, John McVay, Dave eterson, Tom Pogatchnik, Kevin Doty, Merr1yn Seefeldt, Steve Lemme, Cyndie Johnson, Candy Benoit, and Mary M cke. STAFF: Rick Wo1fste11er, Jeff O'Neill, and Ollie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE UNE 18, 1992 IDC MINUTES. 3. CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT. 4. CONSIDERATION TO ACCEPT IDC EMBERSHIP RESIGNATION FROM TOM POGATCHNIK AND CONSIDER RE LACEMENT RECOMMMENDATION, TOM LINDQUIST. . 5. CONSIDERATION OF PUBLIC HEARl G NOTICE DATE FOR THE MINNESOTA ECONOMIC RECOVERY GRANT APPLI ATION FOR AROPLAX CORPORATION. 6. CONSIDERATION OF PROSPECT UPD TE: a) Suburban Machine & Manuf cturing, Inc. b) Q-A Thermal Processing, nc. e) Agricultural Product Man facturer d) Steinwa11, Inc. e) Sporting Goods Distribut on 7. CONSIDERATION TO DISCUSS POTE TIAL GROUNDBREAKING RECEPTIONS AND BRE EXPANSION RECEPTIONS. 8. CONSIDERATION OF A FOLLOW-UP ON THE DEVELOPMENT OF A FARM CREDIT PRELIMINARY PLAT PLANS. 9. CONSIDERATION OF SUBCOMMITTEE REPORTS. a) BRE Subcommittee Reports. b) Marketing Subcommittee r minder - Meeting Tuesday, July 21, 8:00 AM, City Hall. c) Local BRE Subcommittee - continued from June meeting. 10. OTHER BUSINESS. a) Copy of Letter from DTED b) Chamber meeting at noon. 4It 11. ADJOURNMENT. . . . MINU ES MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE Thursday, June 18, 1992 - 7:00 AM City all MEMBERS PRESENT: Vice Presidet Don Smith, Treasurer Ron Hoglund, Arve Grimsmo, Harvey Kendall, Dennis Taylor, Ken aus, John McVay, Kevin Doty, Cyndie Johnso , Candy Benoit, and Mary Micke. MEMBERS ABSENT: Shelley Johns n, Lowell Schrupp, Jay Morrell, Linda Mielke, Dave Peterson, Tom Pogatchnik, Merrlyn Seefeldt, and Steve Lemme. STAFF PRESENT: Ollie Koropcha . STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill. 1. CALL TO ORDER. In the absence of Chairperson Shelley Johnson, Vice Chairperson Don Smith called he IDC meeting to order at 7:05 AM. 2 . CONSIDERATION TO APPROVE THE 1992 IDC MINUTES. Harvey Kendall made a motion 0 approve the May 21, 1992 IDC minutes, seconded by John cVay, wi th no corrections or additions the minutes were ap roved as written. 3. CONSIDERATION TO HEAR AND ACC PT THE IDC FINANCIAL REPORT. Treasurer Ron Hoglund reported a Security Financial balance of $2,533.58 and a Wright County balance of $486.17 for a total balance of $3,019.75. Mary M cke made a motion to accept the IDC financial report, second d by Harvey Kendall, without further discussion the financial report was accepted and filed as given. 4. CONSIDERATION OF PROSPECT UPD TE: a) Aroplax Corporation - Kor pchak reported that Aroplax has received their bank committment and next Tuesday, June 23; Mr. Schoen, Mr. Kirsc t, and Koropchak will meet with the Minnesota Departme t of Community Development regarding the Economic R covery Grant application. The financial package includ s six sources of funds. b) Suburban Machine and Ma ufacturing, Inc. - Originally this company contacted K ropchak's office last fall and on June 8, Mr. Kendall, Mr. Hog 1 und, and Koropchak visi ted the Rogers faci i ty upon their request. The company owner's reside in Monticello and the company does general machining and h s a product line. Customers include John Deere, Con olidated Freightway, etc. On . IDC MINUTES 6-18-92 . . c) June 10, Mr. Kirscht and Koropchak revisited the company to further discuss finan ial options. The company has a buyer on their existin property and Koropchak has received a letter of committment for a Monticello location. The compan wishes to occupy their new facility by the end of ctober. The new facility size would be 11,000 sq ft 8,000 sq ft manufacturing and 3,000 sq ft off ice wi h an unf inished 3,000 sq ft mezzinine) . Existing e' ployment is 15 full time and projects 8 new jobs with~n the next two years, wage range from $10.00 - $13.00. hey are interested in the 3-4 acres of the Farm Credit property to the east of Remmele and the Fallon Avenue ea ement. Vice Chairperson Smith thanked Harvey and Ron f r their support and time as part of the Prospect Committe Agricultural Product Ma ufacturer (NSP) - The company president, Mr. Stockwel , met wi th John McVay, Kevin Doty, Jeff O'Neill, and Koropchak on June 16. The IDC was informed that the co pany increased its project size from a 20,000 to a 30,00: sq ft metal facility and from 5 to 10-15 acres. The company will employ 10 to 15 unski lIed workers (seas nal), wage range of $5.00 to $7.50. The production pr cess would include the purchase of cornstalks from farme 5, the stalks would be ground-up in a grinder located ou side, dried in a dryer inside, and baled for storage 0 delivery to horse stables for use as horse bedding. ith the potential of a partner the used horse bedding w uld be recycled into a composed fertilizer and sold to farmers or commercially. The compose would be contai ed in silos of durable plastic and stored outside. Oth r markets may be turkey or pig bedding. The company ha been in business for 10 years and operated at one time in Cannon Falls, unfortunately, having the wrong type of dryer the facility burnt. The company does not consid r this as a start-up or as a testing plant but as a first plant. Of the company's original 65 shareholders, 88% remain. No clear financial funding needs nor potenti:al equi ty ingestion was def ined. Koropchak informed the IDC that Mr. O'Neill briefly addressed the screening, outdoor storage, landscaping, hard-surfacing, and cu bing requirements for Heavy Industrial (1-2) zonin at the meeting. After the meeting, Oakwood Industrial Park 1-2 lots along Dundas Road were marketed. Mr. tockwell asked if the communi ty was interested in the co pany and if 60 to set up another meeting, Koropchak asked for direction from the IDC members. Page 2 . . . IDC MINUTES 6-18-92 The IDC had various opinions ranging was worth proceeding, just fishing, encourage a county development, don't waste much time. oncerns were that the nature of the business maybe dirty, noisy, and expell odors which may discourage existing eighborhood businesses to expand. Also, the wisdo of local dollars invested into a project with few jobs at low wage scale was noted by Koropchak. Modern Molding, Inc. Koropchak reported that Mr. Portmann, President of M dern Molding, has informed her of the company's decisi n to locate in Delano. Mr. Portmann said all marke ing aspects of Monticello were very positive; however, property became available in Delano which means the ompany officials can remain in their homes in Long La' e and Minnetonka and have a shorter distance to com ute. Although, papers haven't been signed, Mr. Portman thanked the City of Monticello and the Prospect Commi t ee for its time and support. Kevin Doty noted the comp ny had expressed concern to the availability of the work force with the proposed Aroplax Corporation, a competito . Koropchak requested a letter of final site location c mmitment for record and filing. Steinwall, Inc. - Koropc: ak reported that Ms. Steinwall and herself met on June 4 the meeting was set to discuss and explain financial 0 tions and tour the industrial sites. At this point, M . Steinwall expressed the most interest in the Farm Cr di t property to the north of Chelsea for freeway expo ure. Having received a copy of Steinwall 's marketing bro hure and newsletters, Koropchak distributed them for IDC embers to view. The IDC agreed with Koropchak to active y pursue this company, as the quality and nature of the business meets the community's objectives. A developm nt project is anticipated for 1993. Q-A Thermo Process, - On June 10, Bill King and Lenny Kirscht of BDS, Inc and two of the four principles of this start-up compa y met with Jeff 0' Neill, Al Larson, and Koropchak. The meeting purpose was to introduce the principles 0 the community and to discuss the nature of the busi ess. The company provides a service, a commercial h at-treating process for metal products. The Shingobee re-Plan has been marketed, the project would employ 10- :5 within the first year or two with an estimated equity f approximately $100,000. The group liked Monticello and the pre-plan site, no financial package was d tailed. Mr. O'Neill and Mr. Larson believed the proj ct had merit to proceed. BDS will contact the city re arding follow-up. d) e) f) Page . IDC MINUTES 6-18-.92 . BRE a) b) Northfork Snacks, Inc. This project lead came from Greg Dahlheimer. Mr. R"chard Forster, owner, said the turkey jerky food produ t has been tested and a patent obtained. The company s looking for 3,000 to 6,000 sq ft of space to lease or marketing, production, and distribution. The camp ny has applied for a grant from ARI, a state rural agric ltural program. Leaseable space contacts of Jay Morrell and Andy Anderson were provided and local financial options discussed. Joe Furman, CPA - This old Spring individual contacted the Ci ty Administrator's Office regarding a proposed 3,500 sq ft project. After two meeting cancellations, Koropchak said she met wi th Mr. Furman who wanted a detailed outline on he. to calculate tax increment, information about theMEF, and inquired of the Farm Credit Property. Korop hak asked for a description of the project and its bus ness and product, however, Mr. Furman said he had to eave. Koropchak uncomfortable with the meeting, asked he IDC if the name was familiar to them. Some IDC membe s had a faint recall of the name and recommended Koropch k to be on alert and not waste any more time. John Froehling - Needed 5,000 sq ft feet the next week. Bob Bliss - Wanted information on metro phone status. Both j & k were mailed M nticello marketing information and leaseable space cont ct phone numbers were provided. UPDATE: Remmele Engineering - K ropchak reported all was going well on the 10,000 sq ft expansion wi th completion anticipated for October. Sunny Fresh Foods, Inc. - Koropchak informed the IDC that Sunny Fresh was plan ing a two-day Zero Defect Celebration for company mployees on Friday and Saturday of this week. City Coun, il and Staff were invited. g) i) j) k) Don Smi th reminded IDC member' of the 192 Work Plan BRE goal which was to visit, contact, and report on their assigned industry. Cyndie Johnson reported she had contacted Bob Clark at the NSP Regional Service enter, however, with bad timely due to the storms in the Coka' 0 area a meeting will be setup later. 5 " CONSIDERATION OF A SUMMARY REP RT ON THE WORKSHOP PRESENTED BY PAT PELSTRING. Mayor Maus summarized the wor shop as a brainstorming session which gave a fresh look and ga e directions for the HRA as Mr. Pelstring had highlighted ther community's partnership . Page 4 . . 7. . IDC MINUTES 6-18-92 development projects and a ailable funding resources in Monticello. Koropchak repor, ed on Mayor Maus' remark at the workshop as to the wisdom of first developing the industrial areas wi thin the ci ty limi s such as the Farm Credi t and Hoglund properties before 0 nsideration of annexation for industrial uses. This led to a concentrated discussion of the Farm Credit property and it: potential land sale auction. City staff expressed concern, ver parcels becoming landlocked if sold without a road eas ment wi thin the 70 southernly Business Campus acres. The eneral thought was for the city to take a pro-active approac to develop a preliminary plat, this a cooperative partners' ip wi th Farm Credi t j and for future reference to take pro-active approach in the development to extend East S venth Street. Additionally, as a marketing point Koropcha reported on Mr. Pelstring's comment that metro develope s refer to Monticello as that community on the way to st. C oud which is in contrast of our perceptiveness. Mary Micke reported the workshop was of interest to her as a new mem ers of the IDC. 6. CONSIDERATION OF SUB-COMMITT E UPDATES OR PLANS: a) BRE Committee Reports - Covered earlier in the meeting. b) IDC Marketing Commi ttee Attending commi ttee members set Tuesday, July 21, 8:00 A , City Hall as the meeting date to target a couple of j urnals for future presentation. Presentation to center round the IDC budget of $1,000. Commi ttee members are on Smi th, Dave Peterson, Mary Micke, John McVay, and errilyn Seefeldt. c) Local BRE Committee - Ko opchak requested input from the IDC on the idea that ea h sub-committee member be given an identical proposed in ustrial development project and be assigned a communi y for research of necessary ordinances, permits, an costs for building, plumbing, water/sewer hook-up, nd building and site plans. Recommendation was to fi st check with Mr. O'Neill as to such a developed gui e and to table for further discussion at the July 1 meeting. OTHER BUSINESS. a) Chamber Chairperson Chamber meeting at noo attendance and the need candidates. b) Don Smi th informed the 10 the Minnesota Enterpris copy at the next meeting. reminded IDC members of the Also, she encouraged their support the Miss Monticello that Koropchak was featured in Magazine, and asked to see a Page 5 . . . IDC MINUTES 6-18-92 8. ADJOURNMENT. The IDC meeting adjourned at 8:20 AM. \J~ ~Ij\%.!)~ Ollie Koropchak, IDC Executive Di ector Page ;, " 1 ~ , , , -"""....."'. -_.' , ...- "OA " MONTICELLO July 6, 1992 250 East Broadway P. O. Box 1147 Monticello, MN 55362-9245 Phone: (612) 295-2711 Metro: (612) 333-5739 Fax: (612) 295-4404 Mr. Jerald Schoen Aroplax Corporation 2318 Chestnut Avenue West Minneapolis, MN 55405 Dear Mr. Schoen: . This letter is to confirm our telephone conversation of this morning. On Thursday, .July 2, 1992, a copy of the Private Development Contract between he Monticello Housing and Redevelopment Authority and Jerald J. and Mary E. Schoen was mailed to you for you and your attorney to review for comment prior to final d.raft preparation. Please dvise your attorney to contact Mr. John Dean of Holmes & Graven, telephone number 612-337-9207, regarding any contract comments or questions. I will be on vacation beginning July 9 and retu ning to the office on July 16. It is the City's intent and request to have the Private Development Contract executed prior to appr val of the requested $85,000 GreRter Monticello Enterprise Fu d by the Economic Development Authority on Tuesday, July 21, 1992. If you have any questions, pleas don't hesitate to call me at METRO 333-5739 or (612) 295-2711. Respectfully, CITY OF MONTICELLO Ollie Koropchak Economic Development Director . cc; Lenny I)irscht, 8DS, Inc. File V '~; . /)" ,j MONTICELLO July 7, 1992 250 East Broadway P. O. Box 1147 Monticello, MN 55362-9245 Phone: (612) 295~2711 Metro: (612) 333~5739 Fax:- (612) 295~4404 Mr. Nicholas J. Stockwell ECO Resources Corporation 720 Virginia Shores Circle Excelsior, MN 55331 Dear Mr. Stockwell: . Monticello's Industrial Recruitment Committee would like to thank you for the time giv n Monticello as a potential si te location for your pro osed agricul tural product manufacturer project. After careful consideration, the commi ttee decided to continue their strong suppor of our Business Retention and Expansion (BRE) Program. This program encourages expansion of Ollr existing businesses, wherefore, in indirect ways the city attem ts to protect a business' interest while encouraging f ture development. Because of the nature of your campa y's product and with some unknowns associated in your production process such as potential noise, dust, and odor, the committee has determined the proposed ECO Resources project does not complement the BRE program. Therefore, the Ci ty of Monticello withdraws as an Interested community in the ECO Resources site location earch. . Additionally, Mr. Stockwell, I would like to mention that the commi ttee was encour ged by your preventive environmental concept; and they fel t because of the nature of the business, a r ral site location would be more sui table. If we can b of any assistance wi th a Wright County or surrounding area site location, please don't hesitate to call us. . Mr. stockwell July 7, 1992 Page 2 Again, thank you for your interest in Monticello, and we wish you and the company gre t success. Respectfully, CITY OF MONTICELLO ~~ ~d\ ~.Sl3-- Ollie Koropchak Economic Development Directo cc: Debra Palmquist, NSP .Jeff 0 I Neill, Ci ty Assl taut Administrator IDC Commi ttee /' File . . "OA '; -- MONTICELLO June 12, 1992 250 East Broadway P. O. Box 1147 Monticello, MN 55362-9245 Phone: (612) 295-2711 Metro: (612) 333-5739 Fax: (612) 295-4404 Ms. Maureen Steinwall Steinwall, Inc. 7895 Ranchers Road Northeast Fridley, MN 55432 Dear Ms. Steinwall: It was indeed my pleasure to have met in person and to have received the . information on 8teinwall, rnc. I cong atulate Steinwall, rnc. on its various awards whicll reflect your high manage ent, service, and quality standards. The Ci ty of Monticello is most inte ested in pursuing a partnership wi tit Steinwall, Inc. for the purpose of establishing a relocation expansion project plan. The Ci ty works as a eam and each team members is here to serve Steinwall, Inc. during its evelopment and transitional period. Thereafter, Monticello's Business R tent ion and Expansion Program lends continued support to industrial busin sses. Enclosed, as promis8d, is a copy of th lease preplan between Shingobee, Inc. and the City of Monticello using Tax ncrement Financing. Please feel free to contact Mr. Tom Godlewski of 8hingo ee, Inc. regarding the plan. If I call be of further assistance or if you w uld Like me to set up a meeting wi tit Business Development Services, Inc. to further investigate potentiaJ financial options, please don't hesi ate to call me at METRO 333-5739 or (612) 295-2711. Thank you for your visit and I look forward to visiting your facility ill Fridley. I will contact you the week of June 15. Respectfully, CITY OF MONTICELLO U SlQ"':~1 ~ 01 t\ l .j . Ollie Koropchak Economic Development Director ) .j ~-......... I , . --) :::.:.;2.____. . . . Business Development and Analysis Division ~ 1....I....,.Jif'W 1.l=.l.MI ill.. .nl.l~ - nmf!llnft. olf'fU' (II I 1...J"!:f'I1a mill I It... , 900 American Cenrer Building 150 East Kellogg Boulevard St. Paul, Minnesota 5510 1-14 21 612/296-8341 Fax; 612/296-1290 Ma 17, 1992 Ms. Ollie Koropchak Economic Devel. Director city of Monticello 250 E. Broadway Monticello, MN 55362 Dear Ollie: congratulations, your city has successfully met the 1992 star city/County Recertification requirements. Through the 1992 star City ction Plan, your community has charted a solid economic developm nt course that has a capacity to develop jobs locally and serve as a model for other Minnesota cities. wishing your city many succes es as it aggressively implements its job creation strategy. Your 1992 star city Recertification Certificate will be mailed soon. Representative An Equal Opportunity Employet