IDC Agenda 09-19-1991
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AGEN A
MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE
Thursday, September 9, 1991 - 7:00 AM
City H' 11
MEMBERS: Chairperson Shelley Johnsl n, Don Smith, Ron Hoglund, Dale
Lungwitz, Arve Grimsmo, Jay Morrell, Ken Maus, Lowell
Schrupp, Harvey Kendall, Dennis Taylor, Dave Peterson,
John McVay, Linda Mielke, Tom Pogatchnik, Bob Dawson, and
Candy Benoit.
STAFF: Rick Wolfsteller, Jeff 0 Neill, and Ollie Koropchak.
CALL TO ORDER.
CONSIDERATION TO APPROVE THE A GUST IS, 1991 IDC MINUTES.
CONSIDERATION TO HEAR AND PT THE MONTHLY IDC FINANCIAL
REPORT.
CONSIDERATION TO ACCOUNT FOR IDC BANQUET TICKETS SOLD AND
UPDATE OF PLANS.
a) Ticket sales.
b) Program.
CONSIDERATION TO REVIEW ADVERT SEMENT COSTS.
CONSIDERATION OF HEAR UPDATE 0 PROSPECT LIST:
a) Aroplax Corporation
b) G & G Oil Equipment Compa
c) Wafer Manufacturer
d) Packaging Products Manufa
e) Micro-Tech
h) Elaine Nordness
i) Blackman Machinery
j) Continental Life Insurance
k) Suburban Machine & Manufac1turing
7. OTHER BUSINESS.
8. ADJOURNMENT.
CHAMBER MEETING: TODAY, 11:50 AM,
PROGRAM: MEET CHAMBER DIRECTOR CIND
CENTER PLANS BY JOHN SIM
LIFSON, "HEALTHY HUMOR".
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ERICAN LEGION.
, JOHNSON; CHAMBER/INFORMATION
LA; AND GUEST SPEAKER, DR.
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MINUT S
MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE
Thursday, August 15 1991 - 7:00 AM
City H 11
MEMBERS PRESENT:
Chairperson Sh 11ey Johnson, Ron Hoglund, Dale
Lungwitz, Arvel Grimsmo, Jay Morrell, Lowell
Schrupp, Harve Kendall, Dennis Taylor, Dave
Peterson, John McVay, and Candy Benoit.
MEMBERS ABSENT:
Don Smith, K n Maus, Linda Mielke, Tom
Pogatchnik, an Bob Dawson.
STAFF PRESENT:
Rick Wolfsteller, Jeff O'Neill, and Ollie
Koropchak.
1. CALL TO ORDER.
Chairperson Johnson called th IDC meeting to order at 7:00
AM, excusing himself, the ch ir was turned over to Lowell
Schrupp.
2.
1991 IDC MINUTES.
CONSIDERATION TO APPROVE THE
Ron Hoglund made a motion to a prove the July 18 IDC minutes,
seconded by Arve Grimsmo and without further comments the
minutes were approved as writ en.
3.
CONSIDERATION TO HEAR AND AC EPT THE MONTHLY IDC FINANCIAL
REPORT.
Treasurer Hoglund reported a Security Financial balance of
$3,980.83 and a Wright County State balance of $2,678.20 for
a total of $6,659.03. Arve G imsmo made a motion to accept
the monthly financial report, econded by Harvey Kendall, the
financial report was accepted and filed as given. Donations
received toward the new promo ional video total $3,175 with
expenditures to date of $2,00 to Chris Lommel Productions,
Inc.
4. CONSIDERATION OF IDC LANS AND UPDATE.
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a) Distribution of tickets. I Koropchak distributed Banquet
tickets to the IDC member. Tickets are $75.00 each and
$25.00 for spouse. The B. nquet is scheduled for Monday,
September 30, 1991 at te Monte Club with social hour
beginning at 6:30 PM.
b)
program and meal.
local testimonies:
Equipment Company,
rogram will consist of three
y Fresh, The Tire Services
roplax Corporation (pending).
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IDC MINUTES
8-15-91
The main program featur is the unveiling of the new
promotional video as produced by Chris Lommel
Productions, Inc. Mea choices are filet w/mushroom
sauce, broiled or deep- ried walleye pike, or chicken
asparagus. No open bar, ill be held, and the cost for
the hors d' quervres has b. en reduced to $2.00 per person.
MARKETING
TOOLS:
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CONSIDERATION OF OTHER C
ADVERTISEMENTS AND INCENTIVES
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Koropchak provided as agenda supplement information other
community's marketing tools. The intent was to inform and
bring an awareness to the IDC or discussion and for potential
future planning or budgetin. Copies of the financial
incentives were from the ommunities of New Richmond,
Wisconsin and Faribault, Minesota. Advertisements in the
Minnesota Real Estate Journa were from Elk River, Rogers,
Maple Grove, Champlin, St. eter, and Willmar while other
advertisements appeared in t e corporate Report were from
Duluth, Buffalo, Hastings, G and Forks, New Brighton, and
Brooklyn Park. The committee suggested it may be a good time
to advertise in conjunction ith the Chamber's promotional
efforts. The IDC directed Kor pchak to research price options
for the committee to review.
6. CONSIDERATION TO HEAR UPDATE F PROSPECT LIST:
a) AROPLAX CORPORATION - ith the preliminary financial
approval from SBA, Aro lax is shopping for SBA bank
participation and a line of credit. At this time three
options are being explor d Marquette Bank, local lending
institution, and pensio funding. Deb Gustafson, BDS,
Inc., states the projec is still on. No Development
Agreement has been initi ted by BDS, Inc.
b) SHINGOBEE, INC. - With the letter of intent executed,
$5,000 commitment fee r ceived, and a copy of the land
commitment agreement in hand the TIF/pre Plan Project
between Shingobee and t e City is ready for marketing.
The preliminary Develop ,ent Agreement has been prepared
by Bob Dieke of Bradley' Dieke with mutual agreement by
both parties. Final'zation and execution of the
Development Agreement ill not take place until a
qualified 1easee is fo nd. The marketing plan will
terminate a year from ,he TIF Council Public Hearing
date. IDC members were asked to market the plan if the
occasion arises and dir ct inquiries to Koropchak.
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c)
G & G OIL EQUIPMENT COMpi NY - On August 2, Mr. Art Speck
of G & G Oil Equipment Company toured the industrial
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IDC MINUTES
8-15-91
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sites and the city. FoIl the tour a subcommittee of
Shelley Johnson, Ken Mau , Al Larson, Rick Wolfsteller,
and Jeff O'Neill joined Mr. steck, Ron Hoglund, and
Koropchak to discuss he nature of the company's
business. Mr. Speck info, med the group that the company
has been incorporated fori four years and has annual sales
of three million dollars!. The company makes use of a
$30,000 te1emarking systi m of 6,000 names and employs
five sales personnel. Th' company purchases, refurbishs,
and sales used gasoline d spensers with the same warranty
guarantee as a new dispe ser but at one-half the cost.
Life of a dispsenser is pproximately seven years. The
capped and plugged disp nsers arrive at the Blaine or
Hugo facility via compan owned air-ride trucks and are
stored outdoors. Upon the start of the refurbishing
process the dispenser is disassembled indoors and the 0
to 8 ounces of gasoline is expelled into a 500 gallon
ground-level tank. This ank has been pumped once within
the last two years. M. Speck was up front with the
committee and addressed the City of Blaine's concerns.
The company's image in Baine is that the company deals
with gasoline tanks which is complicated by their current
site location next to wetland area (potential soil
contamination) and the amount of necessary outdoor
storage area. The com any is willing to work with a
community for relocation and inquired of available city
finanical incentives. Last year the company
subcontracted out approx mately one-half million dollars
of work into the communi y. The company plans to retain
70% of their current 3 employment in the relocation
process. Wage rates ar of $6.50 to $12.50 per hour.
Construction plans are for a 30,000 sq ft masonary
building on approximate y five acres. outdoor storage
needs are one to two ac es. The company is looking at
Maple Lake, Becker, and MonticellO. Princeton and St.
Cloud have been ruled 0 t.
The committee visited th Blaine facility on August 8 and
Mr. O'Neill videoed the Blaine and Hugo facility which
was shown to the IDC. Koropchak provided the company
with an estimated 1992 tax projections; list of local
sandblasters, metal fab icators, anodizers, and screen
printers; and marketed the local financial incentives
promoting a win/win dev lopment for both the company and
the city.
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Mr. O'Neill stated city's ordinance allows for
outdoor storage not to exceed 30% of a total building
size thereby acknowledg'ng the need for a conditional use
permit. G & G's outdo r storage needs are three times
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IDC MINUTES
8-15-91
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greater than the planne 30,000 sq ft building. Mr.
Morrell inquired if the .INSP Service Center development
was requested to obtain a conditional use permit as their
outdoor storage area exc eds the size of their facility.
Mr. O'Neill said he wasl not sure and would check that
out. Dave Peterson ackn' wI edged that PCA guidelines do
not regulate outdoor abve-ground storage tanks of 500
gallons or under. The su committee felt the potential of
soil contamination was near zero because of the expelling
process and the natur of our sandy soils. The
subcommi ttee also infor ed the IDC that the current
ou tdoor site was not ea t, however, the company is
looking to improve their image.
Upon viewing the video,
subcommittee comments.
relocation to Monticello
with caution by utilizin
a definite outdoor scree
(heavy industrial) zoned
he IDC members agreed with the
They endorsed the company's
ith a recommendation to proceed
the financial incentives with
ing plan and a recommended 1-2
lot.
FOOD INGREDIENT PLANT This request was for a
confidential food ingre ient plant who is looking to
purchase 10-40 acres of i dustrial land. They employ 25-
60 people and run three shi fts , seven days a week.
Capital investment woul be $66 to $210 million. The
company is a heavy elect ical user for the cogeneration-
steam process and the w stewater requirements are high
with high levels of fat , oils and grease. They will
generate a feed-grade b product ingredient and their
transportation needs are ail service, barge service, and
adequate roads.
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According to Public Wo ks Director John Simola, our
current water treatment lant does not have the capacity
to meet this company's r quirements. Monticello's only
industrial property wi h rail is zoned 1-1 (Light
Industrial) and we have no barge availability. It is
believed that the barge arries grain for milling of the
bakery products.
With the above infor ation and a review of the
requirements by the subc mmittee, Koropchak responded to
Mr. Terrell Towers stat~ng upon evaluation the City of
Monticello is unable 0 meet this company's site
requirements.
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COMPUTER MANUFACTURER - his wafer fabrication facility
will contain approximate y 450,000 sq ft including 60,000
sq ft of Class I cleanro With the planned additional
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IDC MINUTES
8-15-91
administrative office, utility building, and related
support facilities thel total development would be
approximately 700,000 sq:ft. The company is looking for
approximately 100 acres f industrial park, campus-type
environment. They woul employ 1,000 to 2,000 people
with skills of manufactu ing operators, engineers/other
professionals, technicia's, and clerical.
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The request for proposal Iwas just received and Koropchak
will respond to the cons ltant in Portland, Oregon in a
timely manner marketing he Farm Credit Property or the
Wolters/Hoglund Property
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MAID OF SCANDIA - Koropc ak made a courtesy visit to Mr.
Dahlquist and toured the aid of Scandia present location
on Highway 7 and 100. he two-story structure (total
56,000 sq ft) is for sa e as the company's needs have
changed. Today the comp ny's major business sales are
with hotels, resturants,and bakeries rather than retail
stores. Koropchak ma e available to IDC members
Scandia's catolog and poi ted out deliveries are made via
Uni ted Parcel. They r main interested in Monticello
where they would antici ate constructing a one-story
52,000 sq ft building, 4 ,000 sq ft warehouse/packaging
and 12,000 sq ft office.
g) MICRO-TECH - This small e ectronic labor-intense company
is looking to relocate heir company under one roof.
Currently the production is located in Eden Prairie and
the sales personnel are in St. Cloud. The company
produces hearing aid com onents and currently employ 40
people and need a 5,0 0 sq ft facility for owner
occupancy or for lease. Wage rate from $7.20 to $9.00.
The company has proposal from New Richmond, Wisconsin
and Faribault, Minnesota. The company is looking for a
detailed financial prop sal including available job
training.
h) ELAINE NORDNESS - Ms. Nor ness reports that her client is
reviewing proposals and t check back in September. The
client is looking to reI cate from their present three
metro location to one loc tion. The company is a plastic
injection molding compa 'y with plans to construct a
50,000 sq ft building.
BLACKMAN MACHINERY - (Bro dway Machinery) This St. Cloud
wood and metal works com any is still looking to lease
4,500 sq ft of showroom/m nufacturing space.
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BART INDUSTRIES, INC. - Mr. Magnuson was looking to
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IDC MINUTES
8-15-91
relocate his metal fab icator business from Hendrum,
Minnesota closer to the! etro area. Upon inquiring for
5,000 to 7,000 sq ft of 1 aseable space, Mr. Magnuson has
changed his mind regard' ng relocating as he currently
rents for $150 per mont .
k) CONTINENTAL LIFE INSURA CE - According to Mr. Towers,
this company is still we"ghing it options to determine if
Minnesota is the best 1 cation for them.
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CANTERBURY DOWNS TELEMA KETING RACING - A real estate
company has contacted Koropchak regarding financial
incentives and the need for 25,000 sq ft of leaseable
space with freeway expos re, availability of parking for
600, and the need for a liquor license. Legislation is
supportive of this out-o -state racing developments with
plans to locate in St. Paul, Minneapolis, Rochester,
Duluth, and St. Cloud. However, St. Cloud was not
interested and offered n incentives. The facility would
consist of white linen ining and a Champ's resturant
atmosphere. The IDC q estioned the Canterbury Downs
financial status and fel if the state is supportive of
the project than they ca provide incentives. Koropchak
provided the real est te company with the city's
marketing brochure, cont ct number of the mall's property
manager, and marketed no local incentives.
7. OTHER BUSINESS.
In relationship to the above request, the IDC asked if the
mall could temporarily be us d for another use than retail.
Mr. O'Neill responded stating some communities grant a special
permit allowing short term use of under-utilized property such
as the mall for an insurance office.
Arve Grimsmo announced that SG, managers of the Monticello ~~,1~
Water Treatment Plant, were a arded the contract for the new
Wright County Waste Facility. Employment projected at 25-30.
Chamber meeting today at 11:5 AM, American Legion Club. Barb
Schwientek is the guest speaer.
8 . ADJOURNMENT.
The IDC meeting adjourned at 8:15 AM.
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Ollie Koropchak, IDC Executive Secretary