IDC Agenda 06-18-1992
.
.
.
AGE DA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, June 18, 1992 - 7:00 AM
City Hall
MEMBERS:
Chairperson Shelley 30h son, Vice Chairperson Don Smith,
Treasurer Ron Hoglund, owell Schrupp, Arve Grimsmo, 3ay
Morrell, Harvey Kendall, Dennis Taylor, Linda Mielke, Ken
Maus, John McVay, Dave Peterson, Tom Pogatchnik, kevin
Doty, Merrl yn Seefeldt, Steve Lemme, Cyndie Johnson,
Candy Benoit, and Mary Micke.
STAFF:
Rick Wolfsteller, Jeff 'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE MAY 21, 1992 IDe MINUTES.
3. CONSIDERATION TO HEAR AND ACCPET THE IDC FINANCIAL REPORT.
4 .
CONSIDERATION OF PROSPECT
a) Aroplax Corporation
b) Suburban Machine and
c) Agricultural Product
d) Modern Molding, Inc.
e) Steinwall, Inc.
f) Q-A Thermo Process, Inc.
g) Northfork Snacks, Inc.
h) Sporting Goods Distrlbu ion
i) Joe Furman
j) John Froehling
k) Bob Bliss
BRE UPDATE:
a) Remmele Engineering
b) Sunny Fresh Foods, Inc.
ufacturing, Inc.
ufacturer (NSP)
5. CONSIDERATION OF A SUMMARY REPORT ON THE WORKSHOP PRESENTED BY
PAT PELSTRING.
6. CONSIDERATION OF SUB-COMMITT E UPDATES OR PLANS:
a) BRE Committee Reports
b) IDC Advertising Commltt e - Set meeting date.
- Newsletter.
c) Local BRE Committee - G neral idea or plan.
7. OTHER BUSINESS.
a) Chamber meeting, noon t day, American Legion Club.
Miss Monticello Candida es.
8.
ADJOURNMENT.
.
.
.
MINUES
MONTICELLO INDUSTRIAL EVELOPMENT COMMITTEE
Thursday, May 21, 1992 - 7:00 AM
City all
MEMBERS PRESENT:
Chairperson Selley Johnson, Treasurer Ron
Hoglund, Jay orrell, Harvey Kendall, Linda
Mielke, Ken Maus, John McVay, Merrlyn
Seefeldt, Ste e Lemme, Cyndie Johnson, Candy
Benoit, and Ma y Micke.
MEMBERS ABSENT:
Don Smith, L Schrupp, Arve Grimsmo,
Dennis Taylor, Dave Peterson, Tom Pogatchnik,
and Kevin Doty.
STAFF PRESENT:
STAFF ABSENT:
Jeff O'Neill.
Rick Wolfstell r and Ollie Koropchak.
1. CALL TO ORDER.
Chairperson Shelley Johnson ca led the IDC meeting to order at
7:03 AM.
2 .
CONSIDERATION TO APPROVE THE
1992 IDC MINUTES.
Cyndie Johnson made a motion t approve the April 16, 1992 IDC
minutes, seconded by Ron Hogl nd, and with 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
$2,524.72 and a Wright County State Bank balance of $384.63
for a total of $3,009.35. H rvey Kendall made a motion to
accept the IDC financial repo t, seconded by John McVay and
with no further discussion the financial report was accept and
filed as given.
4 .
CONSIDERATION OF PROSPECT UPD TES:
a) Aroplax Corporation - Kropchak reported that company
financial statements hav been updated and the revised
projections will be compl ted for review by the Bank Loan
Board on June 2. Mr. Lenn Kirscht of BDS, Inc. foresees
no problems with financi I approval.
b) Long Lake Tool & Die - This company is still in the
process of making their site location. Originally, the
targeted decision date as around May 1. Koropchak
having called on the co pany several times, Mr. Lenny
Kirscht will now contact he company as a fOllow-up.
.
c)
d)
e)
.
.
f)
Wisconsin Foam Products M nufacturer - This company which
is looking to construc a basic metal building has
earmarked the City of ecker as their site location.
Reasons for the site 10 ation were low tax rate, free
land, and free utilities to the building.
out-of-State Food Proces ing Company - Mr. Towers of the
Minnesota Department of TED, has had no further inquiries
from the company; altho gh, he reports the company is
from Minnesota and has hired a consul tant from South
Carolina"
Federal Foam Technology, nc. - This company continues to
look for an existing 50, 00 sq ft facility.
Karl Menzel - Mr. Menzel a Monticello resident inquired
to the availability of a ,500 to 10,000 office/warehouse
sq ft facility for lease. This for his friend, the owner
of Loon Photography" T e need is for space by August,
the business sells phot graphy equipment and supplies.
Koropchak referenced ay Morrell's facili ty, the
Shingobee Pre-Plan, and the Monticello Mall (temporary
space). In talking with Kevin, the business was looking
for the business condo 1 ase concept as in Crystal.
Q-A Thermo Process, Inc. - On a preliminary basic, Bill
King and Lenny Kirscht f BDS, Inc., have inquired of
Monticello's interest i a start-up company which is
looking to lease 15,00 to 20,000 sq ft. The four
principles have a total of 60 years experience in the
metal heat-treating proc 56. Employment would be 12-15
skilled workers within the first year and equity
ingestion of $100,000+. BDS staff will talk to the
principles regarding a meeting date with Monticello
individuals. Koropchak mailed the Shingobee Pre-Plan
Information to BDS, Inc with the acknowledgement that
Shingobee is interested in an existing business.
Potato Equipment Manuf cturer Chairperson Johnson
informed IDC members 0 his inquiry from Dr. 0' Dell
Johnson. Dr. Johnson recently became involved in a
1 imi ted partnership wi h Gordon Cell. The Braham,
Minnesota business manuf ctures potato farm equipment and
are in need of a lea eable 40,000 sq ft facility.
Currently they employ 80 (seasonal) with maximum of 125.
Their current facility s inefficient as utility costs
are high and space is l"mited which has caused them to
turn away business. Kor pchak contacted Dr. Johnson who
said they were meetin with a bank in Montivideo,
Minnesota within the nex few days. According to BDS who
worked with them on a Wi consin location, the company is
highl y leveraged and has inventory problems. Dr. Johnson
appreciated the local in erest; however, plans to follow
through at Montivideo at this time.
Agricultural Product Ma ufacturer - Koropchak reported
this lead came from Deb almquist of NSP. A response to
the site location reque t is to be submitted by May 26.
Project size 20,000 q ft facility on five acre
industrial parcel. en to fifteen jobs, capital
g)
h)
i)
.
.
.
j )
investment of $2 million, and the need for electrical and
natural gas. Desire outside seven-county metro area wi th
good highway access. Th company will base tis location
decision largely on fina cial incentives. Koropchak said
she has been unable t find out the nature of the
business or product. J hn McVay was also unaware. A
proposal will be submitt d.
Steinwall, Inc. Maureen Steinwall, President of
Steinwall, Inc., a th rmo-plastic injection molding
company contacted Kor pchak' s off ice. Koropchak
originally spoke to this ompany in April, 1990. Because
of the recession, Stei wall put expansion relocation
plans on hold. Today th company employs 60 people and
has a need for a 35,0 0 sq ft facility. Once not
interested in Monticello because of the Aroplax project
which is a direct competitor, Ms. Steinwall has since
changed her mind. A mee ing has been set for June 4 to
view si tea and to expl in financing options. A 1993
development is antlclpat d.
Two other inquiries were for leaseable space of 2,000 to
3,000 sq ft. They were referred to Jay Morrell, Andy
Anderson, and the Montic 110 Mall.
UPDATE;
Remmele Engineering - Ko opchak submitted a copy of the
letter addressed to Mr. udil regarding her findings of
information requested by Mr. Pudil following the meeting
held on April 28. A our of the Monticello Remmele
facility preceded the meeting held between Mr. Pudil, Mr.
Chuck Jungman, Mr. Joe L Valle, and Mr. Steve Symanietz
of Remmele; Mr. Ken Sv e of the State Department of
Building Codes and Stand rds; Ken Maus, Monticello Mayor;
Arve Grimsmo of the ID ; and Rick Wolfsteller, Jeff
O'Neill, Gary Anderson, and Koropchak, City Staff. In
summary, due to the cons ruction material, building size
(over 24,000 sq ft), an occupany type of the Remmele
facility; State code allo s two alternatives to sprinkler
system installation. Al ernatives being installation of
wall separations (retractable) or installation of fire
rating steel supports Oi foam spray. The city can't
legally waive the Stat, building codes. Remmele' s
decicion is to install sprinklers and plan to occupy
their new expansion in ctober. Koropchak inquired if
Remmele plans to continue future expansion in Monticello,
the response was "hope s ".
Hoglund Bus Company - Ko opchak asked Mayor Maus to talk
to her following the mee Ing.
BRE-IDC Reports - None r ported.
BRE Tours - Koropchak re orted that Bill and Barb Tapper
are interested in havi 9 an open house; however, not
until fall because sprin and summer is their busy time.
Also, with Sunny Fresh's planned renovation open house,
Koropchak felt that waul suffice the Economic Work Plan
objective.
k)
BRE
a)
b)
c)
d)
.
.
.
5.
CONSIDERATION TO DISCUSS AND SUMMARIZE THE BRE BREAKFAST.
Chairperson Johnson as ed for input from IDC members
regarding the success or unsuccess of the BRE Breakfast.
Merrlyn Seefeldt felt it was good as its one of the only
opportunities for industrial businesses to network on an
informal basis. Harvey Kendall also felt the breakfast
was good and Ron Hoglund felt the attendance was up this
year maybe due to the direct contact between an IDC
member and a business. Candy Benoit felt the setting
wi th round table encoura ed networking among individuals.
Koropchak reported 13 b sinesses were represented by 17
individuals compared to 9 businesses represented by 12
individuals last year. ost comparison was $291.49 (46)
this year to $169.40 36) last year which included
donated food from Sunny resh. The general consensus was
to continue the breakfast on an annual basis.
Merrlyn Seefeldt infor ed the IDC that information
regarding benefi ts and ages paid by other Monticello
businesses would be an nterest to Electro and others.
Jay Morrell responded by stating, "Although, he did not
fill out that portion of the BRE survey, he refers to the
BRE wage and benefit inf rmation or gets on the phone and
calls." Merrlyn expressed wages paid by the school and
city has a negative eff ct on their employees. It was
suggested that Cyndie ohnson, Chamber Director, and
Koropchak work together with a committee to draft a
detailed wage and benefi survey for all local businesses
to complete.
6.
a)
CONSIDERATION OF THE IDC HOUSEKEEPING:
Banquet Speaker, ack Grundhofer Chairperson
Johnson reported that Mr. Grundhofer is the
confirmed speaker f r our '92 banquet; however, due
to his unknown se edule to leave town the next
morning our program may need some flexibility. It
was one IDC member' opinion that after the social
hour, one is genera ly to full for the banquet meal
and the flexibility may be a welcome change.
Marketing Committee - Koropchak reviewed the 1992
Economic Developme t Work Plan and with the
increase in the nu ber of IDC members suggested
reinstating the us of commi ttees. A list of
committees with sug ested members was distributed
to members for re iew and comment at the next
meeting. Commi tees were Prospect, Marketing,
Local BRE, State BR , and Financial. Jay Morrell
expressed his int rest to be on the Chamber
Legislative Aff irs Committee, Worker's
Compensation.
b)
.
d)
.
.
Additional new vide s - Koropchak informed the IDC
that she took the initiative and ordered 6 new
videos as the f irs,t set were out in the field.
Koropchak records each video given out.
Additionally, she aid some communities mail a
video in place of a brochure or in addition to each
brochure. Ken Mau expressed that many times a
spouse has the grea est impact on the site location
decision and Monti ello I s video would serve as a
benefit.
Brochure Data Updat
to update the bro
census data regardi
be avai lable on m
Resource Center in
Joint Governmental
an All Governmental
June. Unless the
need, Mr. O'Neill s
meeting after co
Survey.
County Economic Dev lopment Update - The task force
recommended the Wright County Commissioners
consider hiring Ad ance Resources of Mankato to
research the devel pment an economic development
plan. Dollars have not been collected from willing
participating commu ities. Koropchak said she felt
unless both the cit'es and the townships within the
County are interest d in a county econonic plan the
efforts are hopeles .
IDC Newsletter - It is Koropchak's goal to prepare
and mail the IDC Ne sletter out in June. She asked
for articles from b sinesses and if time permitted
a message from the DC Chairperson.
Farm Credi t Proper y - Mr. Wolfsteller reported
that Farm Credit re resentatives have contacted his
office regarding p ssible subdivision of the said
property prior to olding an auction. Koropchak
informed the group hat the Farm Credit property's
land use is contro led by the Zoning Ordinance;
however, she has reservations to its future
availability, affo dability, accessibility, and
marketability. Ad itionally, she reported that
preliminary arrangel ents have been made wi th Mr.
Pat Pelstring to meet with the Housing and
Redevelopment Autho ity. The presentation will be
on alternate priv te/public partnerships being
created by other ommuni ties, date scheduled is
Wednesday, June 1. Koropchak encouraged IDC
members interested n the topic to attend, she will
send a notice confi ming the date.
c)
e)
f)
g)
h)
- Koropchak reported the need
hure insert data. The 1990
g population and economics will
cro-f ic at the SCSU Learning
une or July.
eeting - In the previous years,
Units meeting has been held in
IDC had a suggested topic or
ggested to Koropchak a possible
pletion of the Recreational
.
.
.
i)
Wright County Com ose Facili ty Tour - Koropchak
reported that w th the increase concern by
industries over re ycling and waste, she proceeded
to contact a fe industries regarding their
interest to tour the Wright County facility;
however, found int rest was lacking. No need to
proceed further.
7. OTHER BUSINESS.
Chamber meeting today at the American Legion Club. Program
speaker is Bob Nassauer, "I proving Customer Focus in Your
Company."
Also, the Chamber promoted t upcoming seminar scheduled
for Wednesday, May 27, 8:00 A , Legion Club. The topic is on
the American Disabilities Act, which affects all businesses.
Cost $13.00.
8. ADJOURNMENT.
The IDC meeting adjourned by a consensus of its members at
8:15 AM.
~~ \<cf\~J1
Ollie Koropchak, IDC Executive Dir ctor
IIttItJ
MONTICELLO
May I, 1992
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295~2711
Metro: (612) 333~5739
Fax: (612) 295A404
Mr. Mike Pudil
Vice President/General Manager
Remmele Engineering, Inc.
17701 Highway 10
Big Lake, MN 55309
Dear Mr. Pudil:
.
The City of Monticello would like to t, ank the representatives of Remmele
Engineering for their cooperation, t me, and attendance at the meeting
held last week. In accordance to Sta e Building and Fire Codes and given
Remmele's grade of building constru tion and occupancy, three options
were outlined for consideration.
Some years ago, the City of Montice 10 adopted the State Building and
Fire Code to protect the health, life, and safety of developers,
businesses, and homeowners. As it st nds, the City cannot legally waive
the State Code.
Results of my research indicate if co es are not being followed in other
communities or entities of the state, the State Building and Fire Codes
either has not been adopted or, if a opted, are not being enforced. In
1985, only 15% of the state's area h d adopted the State Building Code
which protected 85% of the state' population. Although this is
changing, you can see where a s rinkler system, given the same
assumptions, may not become an issue in another area. In other cases,
building officials or entities lack raining or knowledge of the codes,
or they may simply choose to ignore 0 neglect the codes. Unfortunately,
the system is not flawless.
I understand Remmele's frustration, a I, too, become frustrated with the
unended circle of increased costs placed on Minnesota businesses,
particularly when working with a qual'ty company as Remmele Engineering,
Inc.
.
Mr. Mike Pudil
May 1, 1992
Page 2
Although the outcome is not altered, I'd like to remind you of the City's
low interest rate loan which is available to qualified existing
industrial businesses. Again, I know this doesn't erase your added
expansion costs or the loss of construction time; but if it helps, we
will immediately consider action of the loan application. Please call
me at 295-2711 if I can assist you or answer any questions.
Again, the City of Monticello is proud of Remmele Engineering, Inc.; we
appreciate your investment in our community, and we look forward to many
continued cooperative years.
Sincerely,
CITY OF MONTICELLO
Q) ~ \~<rl ~~..9.~
Ollie Koropchak
Economic Development Director
cc: IDC File
Mayor Maus
Administrator Wolfsteller
.
.
.
STATE OF MINNESOTA
Department of
. Administration
<f\.~.'Er~,,,
,~,"'-"'-'-~<1b
~.. ':10"l.l:ftl!!i~"'.'.~'\
..'\i:'c,' - ~il""~J"-
l~t
~:...--:' '. '..f:>fft/
'iJ.."b ....... .;.;ry
......1858..." "
408 Metro Square
7th and Robert S~<,
Saint Paul, Minnesota 55101
Phone: (612) 296-4639
FAX: (612) 297-1913
.
.
COpy
April 30, 1992
Rick Wolfsteller
City Administrator
City of Monticello, MiIll1esota
Dear Mr. Wolfsteller:
BUn,LJING CODES AND STANDAIWS
This letter is in response to our eeting with representatives of the city and
Remmele Engineering.
The Building Codes and Standads Division final analysis of the situation is
that your building official is inte preting the code consistent with the Building
Code Division. As was discusse Remmele does have the ability to expand
and under the code has various ptions available to do so. It is the
responsibility of the designer to ecommend which procedure to follow after
submitting plans for approval.
In closing, we are glad the Buil ing Code Division can be of assistance to you.
We feel that the decisions, inter retations and enforcement procedure by the
city building official is proper a d has the interest of the city in mind.
Very truly yours,
Building Codes and Standards
~~~~
~enS;ee
Building Code Representative
KS:me
cc: B. Michael Godfrey