IDC Minutes 07-18-1985
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MIN'TES
Monticello Industrial Development Committee
Thursday, July 18 1985 - 7:00 A.M.
Monticello City Hall
Members Present:
Tom Eidem, Dale
Harvey Kendall,
Alex Pelvit.
ungwitz, Chair Jay Morrell,
ud Schrupp, Don Smith, and
Chair Jay Morrell opened the meeti g asking for approval of the
6-20-85 minutes. Tom moved to ado t said minutes, was seconded
by Bud schrupp, and passed 7-0.
The first item on the agenda was t
Jay Morrell asked if Allen had rec
$675.40. Allen stated the final n
expected at least $375 to be recei
but, had not paid yet. In reviewi
banquet with 1984's~ Allen noted
$450 more this year.
.
Chair Morrell stated that letters
thanking them for their donations
Business Appreciation Day. He als
work hard to promote the banquet
the Chamber, Rotary, Lions, etc.
e review of the annual banquet.
ived any of the remaining
tice was just mailed and he
ed, as they attended the banquet,
g the net profit from this year's
hat we made approximately
ere sent to all banquet contributors
nd reminding them of Fall
stated that all of us should
t other meetings, such as
The second item on the agenda deal with the fall Business
Appreciation Day. It was the Comm ttee's consensus to change
the date to the first Wednesday in September (4th). It was also
the consensus of the committee to ave a casual picnic style
event at the Country Club. It was felt that the event should
be held the first week in Septembe. Because the second week
in September usually had rain. An afternoon of golf and other
activities followed by a casual pi nic in the evening was preferred.
Last year's luncheon was not succe
went back to work and did not make
year the emphasis should be placed
The committee directed Allen to se
Club for the afternoon/evening of
Tom Eidem suggested that something
that do not gOlf. Examples given
card games, backgamon, etc. The C
Chair the outside activities, etc.
is that if you play golf, great; b
will be held.
.
sful in that most non-golfers
it to the golf course. This
on casualness and participation.
up the event at the Country
eptember 4th.
could be planned for those
ere: lawn jarts, croquet,
mmittee suggested Gary Wieber
The effect we should be conveying
t if you don't, other activities
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The Committee suggested we con
Country Club and get estimates
bring the results back to the
Bruce Gagnelius be in charge 0
the lady that caters at the
2-3 picnic style meals and
ext meeting. It was suggested
the bar.
Jay suggested Allen work on a letter and a ticket for the event.
Perhaps they could number the tickets and give away donated prizes.
Promotional prizes such ~~s, Bo dhus tools, hats, belt buckles,
T-shirts, etc., could be used as prizes. We could also have
prizes for golf, jarts, putting contests, etc.
Invi ted guests should include a' 1 those that contributed to the
annual banquet, the guest speak r, all P5ospects, Franklin Denn,
Bob Stern, Council, Senator Bet y Adkins. Representative Bob
McEachern, and Eldon Brustuen. The letters/invitations with
tickets should go out by the 15, h of AU.gust at the latest. We
should get notices to the Times early so they can run several
times. A special letter should be written to the prospect and/or
special guests.
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Item five pertained to the revi
Chair Morrell suggested this be
when we have a majority of the
agreed and complimented Allen 0
Allen stated that the questions
did not want Karen to retype th
original survey forms will be g
meeting.
w of the developers survey.
held over to another meeting
ommittee present. The Committee
the preparation of results.
were omitted by mistake and he
surveys. He suggested that
ven to each member at the next
Chair Morrell asked Allen to up ate the Committee on how we lost
out to Hastings when Representa ives from STP told us they would
choose Monticello. Allen then tarted by referring to the $100,000
grant for a foreign manufacturi g facility. The original grant
which we applied for in January of 1985 went to Hallock because
they had a committment in hand. In March of 1985, Hallock lost
the project to Crookston; and b cause Crookston was a Home Rule
Charter City, the grant became vailable to all statuto~~ cities.
Hastings was a Home Rule Charte City and not eligible. We felt
we had an advantage by pushing he matter. The State of Minnesota
Department of Energy and Econom c Development extended the May
deadline to June 24th to allow astings to apply and have the
statute language changed. This 'then made all cities eligible.
As it turned out, STP was force to make a decision and chose
Hastings. However, their commi tment did not get to Dayton'S
office in time and the grant wa awarded to Hallock. After finding
out this decision, Allen called STP and asked if there was still
a chance to make a deal. STP s id that because both cities could
not obtain the grant, they woul now accept new proposals not
utilizing the $100,000 grant. t this time we are considering
having the Monticello HRA purch se the Clow Building and lease
it back to the STP "Greenhouse".
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Allen stated that because Norway s almost completly shut down
for the month of July. we have pI nty of time to prepare the
new proposal.
Allen stated that in his discussi
led them to pick Hastings or what
improve our presentations for the
it was unfortunate that they were
decision on short notice. They a
that the first greenhouse was cho
asked if I understood that statem
thought that both cities would ge
we would discuss this more at a 1
ns with STP. he asked what
we did wrong. in order to
future. STP stated that
forced to make such a hasty
so said that it was unfortunate
en for Hastings. They then
nt. When I stated that I
some projects. they said
ter date.
Tom Eidem stated that it was not own how many principals
were involved on the STP Board. b~t the two that visited Monticello
voted for Monticello and were outv
as to why they made their decision
was the place to do the "Greenhousi
how Dayton's office had not been ~
Hastings. ~olitical manuevering ca
made waves at the Capital. Dayton'
with us. Our local Politicians be
activity directed toward Dayton's
.
Dale Lungwitz asked where we are w
Tom Eidem explained that the proje
50.000 sq. ft. to 30.000 sq. ft. a
new jobs. This was due to the Sno
not wanting to participate at this
the Clow Building and leasing it b
ted. A discussion followed
when we were told Monticello
"project. Tom explained
ting on our behalf. but
e into play; and when we
office became quite upset
ame involved and alot of
ffice took place.
th the project at this time.
t has been down scaled from
d from 60-90 jobs to 40-50
Plow-Truck Body Company
time. The HRA is considering
ck to them.
Tom Eidem stated that the City sho ld spend City money and
send Arve Grimsmo to Norway for 4- days to meet with the STP
group. This would be beneficial i clearing up alot of questions
and perhaps sell the project. Dal asked if the Committee
could perhaps pay for the trip and thus make the trip look
more legitimate if the Industrial evelopment Committee did
it versus the City. Tom stated th t he. as well as Don Smith
and others. felt it a legitimate C"ty expense and should do
it to either make a deal happen or squelch it and move on to
something else.
Jay Morrell was not sure that the dhance for success justified
the expense of sending the Mayor to Norway. A long discussion
took place debating this; but the c nsensus was to have Tom
pursue it at one of the next Counci meetings. get their approval,
and then act on it. At the same ti e. all available information
should be given to the public so th t when the public raises
questions at the coffee shop. our C mmittee Members/Council
Members can answer them satisfactor"ly. Don Smith stated that
he has discussed. both with Tom and Allen. how they perceive
the potential of this project and f els confident that the
expense would be justified to get t is project.
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Both Tom and Allen stated that
was viable and ultimatelY would
the "Greenhouse" participants 1
own buildings in Monticello, an
he isn't that concerned with th
some, but he can live with it i
consensus of the Committee was
Mayor to Norway. Chair Morrell
Arve work out the details and r
with the results. Tom suggeste
then a special meeting would no
hey really believe the project
be beneficial to the City when
ave the nest, construct their
create more jobs. Tom stated
public flack. It concerns him
the trip is successful. The
o pursue the City sending the
suggested that Tom, Allen, and
port back to the August meeting
that if the Council approved,
be warranted.
Allen noted that time was runni g short, and that both he and
Tom had another meeting to atte d. He also stated that he had
some other items to discuss wit the Committee.
.
Chair Morrell stated that the C
him that this was worth the ris
the Mayor to Norway, the Commit
on the background at a special
special meeting was justified f
the Committee lets its Sub-comm
for video taping, etc. Morrell
is to have enough facts availab'
He also felt members of the Co
Council meeting when it is pres
mmittee as a whole had not convinced
involved and that prior to sending
ee members should be briefed
eeting. Don Smith asked if a
r a $2,000 City expenditure when
ttees handle $2,000 expenditures
stated that his only interest
e to dispell any rumors, etc.
ittee should be present at the
nted.
The next item covered the delet on of Wayne Bidwell from the
IDC. A motion to drop Wayne fr m the membership was made by
Bud Schrupp, seconded by Dale L ngwitz, and passed 0-7.
In other business, Allen report
have committed to the developme
ft. office/warehouse complex.
will be meeting to complete the
that the Committee consider ere
as a theme, perhaps on their pr
constructing such a sign on Lot
Park. This would eliminate neg
Allen said that he did not part
site for the sign, but merely t
sign to let people know we are
the consensus of the Committee
more information.
.
Allen passed out a prospect she
in Iowa. He stated that he cha
to read that of Monticello and
thoughts on it as a possible me
one of the motels, and they ind
of their business is salesman a
would be knowledgeable to infor
plans. It was the Committee's
for use in our motels.
d that Gus and Gary LaFromboise
t of their proposed 25,000 sq.
ity staff and the principals
details soon. Allen then suggested
ting a sign with Industrial Development
perty. Dale Lungwitz suggested
#6, Block 1, of Oakwood Industrial
tiating with the LaFrombois's.
cularly recommend the LaFromboise
consider constructing such a
ndustrially active. It was
o check this out and return with
t that is used at hotels/motels
ged the names of the city, etc.,
anted to get the Committee's
ns of obtaining leads. He contacted
cated that a large percentage
d/or professional people who
ation on expansion/relocation
onsensus to consider it stronglY
.
Allen then reported that he has
and that they are getting some
they make a decision, they will
to the Fall Business Appreciati
Committee informed.
contacted the Farm Bureau again
ffers on their property. When
let us know. They will be invited
n Day, and Allen will keep the
Steve Beddor wrote Allen a lett r stating that rumors were spreading
that the Beddor's never gave us' a chance. He also insinuated
that because they used a $2.00/q. ft. amount for the lease of
a 100,000 sq. ft. building in M nneapolis, we felt they used
that as an excuse not to accept! Monticello's proposal. Allen
stated that after meeting with arry Bjorklund, owner of the
building, he now understands th philosophy involved in corporate
take overs and did not want to e intimidated by them. As a
result, a letter was written to Steve Beddor in response to his
letter. our Committee and City'Staff did their best in making
what area contractors considere a very good offer. It was unfortunate
that we could not compete. All n stated that rumors will always
surface, but it would be so muc more personable to pick up the
phone and discuss it.
.
Allen reported that he has met ith Key Tool, and they are still
considering locating their prod ction/manufacturing facilities
in Monticello. They have regai,ed some of the business they
lost last fall and, in fact, br adened their account base. The
hesitancy at this time is in fi ancing a new debt and causing
a crunch in their cash flow. A ter discussing other options
such as renting/leasing with op ion to buy the Best-in-Webb building,
having the HRA purchase the bui ding and then lease it back with
option to buy or having a local development company construct
a building and lease it back wi h a 5-10 year option to buy.
In relocating to a new building the moving and installation
of the large machines is extrem ly expensive and they only want
to do that once.
The last item discussed concern
asked about the possibility of
this year. Allen reported on t
this spring. He explained the
2-3 buildings this year and 4-5
Allen presented this to the HRA
the proposal. IXI has in recen
property development, especiall,
explained that IXI has been and
general contractor. They have
the Dodge Report a request for
for 1985/1986. The consturctio
of 1985. Total square footage
d lXI's progress. Dale Lungwitz
heir constructing 1-2 buildings
,e proposal he made to IXI earlier
roposal as assuming they erect
,in 1986 to complete their plans.
and they feel comfortable with
months involved itself with
its own properties. Allen further
will continue to be their own
'isted in the May 17th issue of
ids on rpoposed consturction
was planned to begin in September
as listed as 70,000 sq. ft.
.
Dale Lungwitz was a little cone rned that there has not been
any construction started on this yet. Jay Morrell too, was concerned
that the computer industry was lat and did not see how they
could still be in the expansion ode when the computer industry
is in a downhill slide.
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A1~en stated that perhaps the gust meeting wou~d be a good
time to meet over ~unch/breakfast, etc. and discuss their p~ans.
A1~en said he wi~~ attempt to set up such a meeting.
There being no..; further business the meeting was adjourned.
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A1~en L. Pe~vit
Director of Economic Deve~opmet
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