IDC Minutes 07-27-1989
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MINUTES
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Thursday, July 27, '989 - 7:00AM
City Hall
MEMBERS PRESENT:
Chairperson S
Ron Hoglund,
Jim Kruger, D
Linda Mielke,
elly Johnson, Dennis Taylor,
ave Peterson, Rick Wolfsteller,
Ie Lungwitz, Arve Grimsmo,
and Ollie Koropchak.
MEMBERS ABSENT:
Donald Smith, Lowell Schrupp, Harvey Kendall,
Ken Maus, Jay Morrell, and Dale Pogatchnik.
1. CALL TO ORDER.
Chairperson Shelly Johnson aIled the IDC meeting to order
at 7:00 AM.
2. APPROVAL OF THE JUNE
9 IDC MINUTES.
Dale Lungwitz made a motion 'to approve the June 22, 1989
IDC minutes, seconded e Peterson, the minutes stand
approved as written.
3. CONSIDERATION OF THE IDC B
.
Chairperson Johnson reminde
Banquet date. Monday, Octob
confirmed with the Monte Cl
discussion centered around
committee's philosophy of a
Chairperson Johnson express
available for a fee of $600
the IDC to stay with their
names suggested were: Marv
the Timberwolves. former or
Northern States Power or Ca
Leader Roger Moe.
The IDC debated various tic
concern of those participan
spouse or a guest. Options
for spouse/guest or two tic
was made. The IDC agreed t
and with the support of the
Chairperson to also include
of the banquet program. Th
contacts with the suggested,
meeting.
UET: SPEAKER AND PROGRAM.
the IDC members of the IDC
r 30, 1989 which has been
b. Next the members
ast banquet speaker and the
business focus speech.
d that good speakers are
above. however. encouraged
ast approach. Speakers'
n Wolfenson and Harvey Rattner. owners
present Chairman of the Board for
gill, or Senate Majority
et prices which addressed the
s who wished to bring their
$75 per ticket plus $25
ets for $125. No decision
include the industrial testomonies
Chamber Chairperson and Vice
the industrial displays as part
subcommittee will make initial
speakers prior to next months
.
4. CONSIDERATION OF AN UPDATE F THE EXTENDED AREA SERVICE PETITION.
Koropchak informed the IDC . hat a person had been hired to
co:l;leet the additional 150 signatures to satisfy the requirement
of the Public Utilities Com ission Ruling.
IDC Minutes - 7/27/89
Page 2
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4. CONTINUED.
The petition shall be signed by 15% or more of the customers
or 600 customers, whichever is less, in the petitioning
exchange. To date approxim te1y 75 additional signatures
have been collected.
5. CONSIDERATION OF AN UPDATE
Koropchak reported that the.
advertising and design firm,'
alternative proposals for de
information and promotional
cost to $8,000 to $16,000 i
6.
CONSIDERATION OF INCENTIVE:
.
On the recommendation of Ma
of Buffalo for their financ
recently recruited Minneapo
Administrator explained the
sold the land for $15,800 p
two years, third/four years
year full payment. The Ian
Tax Increment Financing, ho
developer may have been acc
taxes were deferred.
Koropchak also informed the
"Pay-As-You-Go". The finan
the amount of tax increment
risk to both the city and t
need for the city to provid
The difference between "Pay
bonding methods is that the
versus the bond holder.
Chairperson Shelly Johnson
was that the City of Buffa1
private development of Buff
if the project is for the g
forgive their portion of th
THE MONTICELLO PROMOTIONAL MATERIAL.
ity Council had authorized a professional
Henning & Associates, to prepare
e10pment of a marketing program and
ateria1. Proposal should range from
eluding printing costs.
DEFERRED TAXES.
Maus, Koropchak called the City
incentive program offered their
is firm. The Assistant City
'City owns the industrial park,
r acre with no payments the first
no interest payments and fifth
was not written down through
ever, other assistance to the
mmendated through TIF. No
IDC of a new financing method
ia1 tool objectives are to maximize
.avai1able for development, reduces
e developer, and eliminates the
its general obigation pledge.
As-You-Go" and the traditional
city makes payments to the developer
nformed the IDC that his understanding
used Tax Abatement for the original
10's Civic Center. In other words,
od of the public a City may
taxes.
City Staff was to continue esearch of financial incentives,
report to the IDC for discu sion with the potentially, in
time, of a recommendation t the City Council for consideration.
7. PROSPECTS: Manteq Internat ona1, Inc. - At present the Letter
of Intent to Ma teq International, Inc. executed
by the IDC and ailed to Manteq hasn't been executed
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IDC Minutes - 7/27/89
Page 3
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7. CONTINUED.
by the company because of a
working capital and questio
reside in Monticello. The
by Mr. Pat Pelstring, Busin
The companys' financial sta
by the end of July with a p
and Mr. Stewart Wilson to M
GENEREUX - project has been
in the expected cabinet sal
additional need of $100,000 for
ed whether Manteq officers must
wo concerns are being handled
ss Development Services, Inc.
ements are expected to be completed
anned visit by Mr. Norm Strand
nnesota in early August.
on hold because of a slack
NSP - the third round of co struction bids have been awarded to
a contractor, and at presen the corporate office is completing
a comparative own/rent cost analysist to determine whether the
project will be NSP owned or leased. Plans are to have the
construction completed by December, 1989.
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TITAN RECREATIONAL PRODUCTS
in Oakwood Industrial Park.
the building, restoration, a
paint facility. The company
which has received preliminar
formal application process.
Seller and buyer must agree
company needs to complete th
for loan approval. Expected
and myself toured the facili
with the improvements of th
of the owners. The company
trailers and is a distributo
Sales office is in Big Lake.
BONDHUS CORPORATION - Prelim
given for the small furnace
hasn't requested a loan from
The company has been notifie
leases the old Best-In-Webb building
Plans include acquisition of the
d expansion of a 5,000 sq ft
has requested funds from the GMEF
approval and now is in the
Two things need to be completed:
n a purchase price, and the
requested financial information
employment of 20. Kevin Doty
y recently and I was impressed
facility and by the enthusiasm
roduces snowmobile and boat
for Polaris and Skido' Snowmobiles.
nary application approval was
oom expansion, however, the company
the designed lending institution.
for the need of a bank loan request.
TIM MORIARTY - the company i a small operation of design and
fabrication of plastic and dIe cast moles which has been
interested in one of the cit small lots for some time. Mr.
Moriarty has asked several tOmes about the possibility of the
city selling the property on a contract for deed. At the
last Council meeting a polic was established for sale of City
owned lots which would allow sale to occur under contract for
deed terms which would include a minimum of 25 percent down,
with the interest rate adjust ble based on the current market
rate. Koropchak will notify r. Moriarty.
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IDC Minutes - 7/27/89
Page 4
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7. CONTINUED.
BRIDGEWATER TELEPHONE COMP Y - based on a discussion with Mr.
Rierson for Bridgewaters plan to alter or expand the structure
located on West County Road 39 and based on the fact that
the projected increment on a new facility on one of the city
owned lots would be substant:"ally small, the suggestion was
made to swap lands. Koropch k wrote a letter to Mr. Rierson of his options,
informing him that in accord nce to the city ordinance, the
present use of the property s a site for cold storage is a
legal but non~conforming use If plans are to expand or enlarge
a structure for use in conje tion with current operations this is
not allowed under current la. In order for an expansion to
occur at this site an amendm nt to the ordinance would be
required. Bridgewater has n option to amendment the ordinance
or relocate to the industria park. City staff will continue
working with Mr. Rierson.
6,000 OFFICE COMPLEX - compa
of a new office complex beca
to hold off relocation
slack in construction work.
135,000 SQUARE FOOT FACILITY - this company contacted Monticello
as a potential relocation si e for the production facility now
located in Minneapolis. The company fabricates insulating
glass products and employs pproximately 150. Their major
supplier is Anderson Windows in Bayport, Minnesota. Koropchak
asked for volunteers on the I C promotional committee to
participate in a company tour of the Minneapolis facility on
Tuesday, August 1, arrival 9:. 0 AM. Details will follow.
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STANDARD IRON AND WIRE WORKS,
Standard Iron and Wire Works
on July 11 inquiring of avail
incentives, and specific ordi
construction. An informationa
was prepared by Koropchak and
called the company to make ar
a company visit to Monticello
approximate 50,000 sq ft buil
would be new. Skilled labor
time of the telephone call, K
company's plan to close on th
Arve Grimsmo expressed his th
contact rather than informati
INC. - Mr. Rick Demeules of
ad contacted Koropchak's office
ble industrial sites, financial
ance information for industrial
package plus specific information
mailed. On July 21, Koropchak
angement for a plant visit or
Original plans were for an
ing with 70 jobs of which 40
rom $8.00 to $12.00. At the
ropchak was informed of the
purchase of land in Rogers.
ughts of the need for personal
n by mail.
FOOD PROCESSING - Koropchak i formed the IDC that she had
contacted Pine City regarding the inquiry that the food
processing company had located in Pine City. Officals in
Pine City responded that the 0 ly food processing or related
such industry was a long time stablished locker plant.
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IDe Minutes - 7/27/89
Page 5
7. CONTINUED.
POOL HAWK - is a new start
state electronic detection
entry and intruders. The
production lease, inventor'
Mr. Ron Anderson was refer
of BDS, Inc. to evaluate b
Monticello would be intere
Mr. Anderson will be compl
and financial statements n
up company who produces a solid-
alarm which alerts one to unintended pool
ompany needs are 1500 sq ft for
and working capital financial needs.
d to my office by Pat Pelstring
siness ideas and product, and if
ted in funding such a new business.
ting a business plan, projections,
eded for bank or GMEF loan application.
MARTIE FARM SERVICE - Mr. artie has elected to begin construction
of his facility in the ind strial park next year.
K-MART - Mr. O'Neill not p esent at the meeting, the item was
tabled.
8. OTHER BUSINESS.
None.
9 . ADJOURNMENT.
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The IDC meeting adjourned t 8:15 AM.
~ ~~O~~
Ollie Koropchak
IDC Executive Secretary
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