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IDC Minutes 07-18-1985 . 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 -1- . 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. . 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". . -2- . 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. . -3- . 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. -5- . 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. ~~~ A1~en L. Pe~vit Director of Economic Deve~opmet . . -6-