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IDC Minutes 06-22-1989 . MINUTES MONTICELLO INDUSTRIAL D Thursday. June 22. City Hall MEMBERS PRESENT: Chairperson Schrupp. Den Kendall. Arv Jay Morrell. MEMBERS ABSENT: Rick Wolfste Dale Pogatch STAFF PRESENT: Jeff O'Neill 1. CALL TO ORDER. VELOPMENT COMMITTEE 989 - 7:00AM helly Johnson. is Taylor. Ron Grimsmo. Dave Dale Lungwitz. Donald Smith. Lowell Hoglund. Harvey Peterson. Ken Maus. and Ollie Koropchak. Jim Kruger. Linda Mielke. and Chairperson Shelly Johnson aIled the IDC meeting to order at 7: 04 AM. 2. APPROVAL OF THE MAY 18. 198 IDC MINUTES. Ron Hoglund made a motion t approve the May 18. 1989 IDC minutes. seconded by Harvey' Kendall and with no further discussion the IDC minutes ere approved as written. . 3. CONSIDERATION TO REVIEW TAB LATION RESULTS FROM THE JOINT GOVERNMENTAL UNITS MEETING. Jeff O'Neill thanked member of the IDC for their participation in the joint meeting held Jne 5 at the Fire Hall and expressed plans for this to be an ann al meeting. Mr. O'Neill explained the method used in tabulatig the results and informed the IDC that the results were p esented to the City Council. however. not as a formal agenda item. The IDC felt the meeting process went real well but possibly too much weight was carried by the two veto votes. Oth r comments by the IDC were: negative vote results of a otential speculative building and the airport improvement issues. the strong interest to promote the retail busin sses and the extended area metro service. the importance of the quality of life. and the fact that no Senior Citizen improvement issues were mentioned. The IDC further discussed the issue "to promote the retail business'" and the interpretation of it's need. For the IDC to be involved c uld be a very controversial issue. O'Neill stated the c ty has a limited amount of available retail space. Ken' aus felt they were referring to financial incentives as t e HRA's TIF use is for non- competitive commerical busin sses or could apply if blight. soil corrections. or major public improvements are necessary to the extent of available proj ct increment. The IDC suggested the City Council a thorize city staff to earmark retail business promotion as a 1990 goal. Also. the IDC asked to be kept posted on t e progress and plans which result from this meeting. . IDC MINUTES - ~/22/89 PAGE 2 . . 4. PROSPECT REPORT: GENEREUX Jeff O'Neill, Harvey Kendall, and Korop hak reported on the plant tour and visit to Genereux. Greeted"~by Bill and Barbara T pper, owners, the IDC Promotional Committee'was given a tour of the kitchen cabinet productio area. Mr. Tapper explained their productio line process, stated they were working on a new. roductiou'process for the now popular Scandinav an style cabinets. and stated that their cab"net sales anticipated for this year are below those projections. The group proceeded to tour t e Westlund Distributing Company warehouse facility which distribute cabinet hardware to compau'es like Genereux. Sales in this area are doing well and coincide with projections. Mr. and M, s. Tapper were IDC guest for lunch where fur, her discussions informed the group of their 'nterest in Anoka, Rockford, and Elk River, th y were very interested in the Monticello financial proposal, however, the IDC groups consensus was they are apprehensive of a relocation at this erne because of the slack in cabinet sales. The IDC f 1t the unavailability of extended area service c u1d be a detriment to the recruitment of this c. mpany. MANTEQ - at Pelstring of Business Development Services, Inc. has just completed the Letter of Intent, inclusive of the financial proposal which wi1 be mailed Manteq within days. The proposal 'nc1udes Manteq's need for a 30,000 sq ft bui ding, potential of 50 jobs, financing needs of 750,000 machinery and equipment, $250,000 or working capital (of which $100,000 is equity , and TIF use to be a carry through for a lea e reduction to Manteq. Because of the poten ial December foreclosure of the Boyle property nd the delinquent taxes and assessments against t e property the IDC suggest that Staff ha~ an alternative site earmarked. Koropchak is to che k with the County on the procedure followed or delinquent taxes and assessments upon filing fo a land subdivision. The Boyle property was cited as the Manteq site because Mr. Conrad Larson an Mr. Boyle's prior contacts and the request for freeway e posure. . IDC was informed of the HRA's decision the NSP project: 1) NSP will go out d construction bid, and 2) the HRA look at being the developer for a lease purchase ption to NSP as the last alternative to see the project go in year 1989. The HRA does not view h~irrole as _to he a developer. IDC MINUTES - 6/22/89 PAGE 3 . 4. CONTINUED. TITAN RECREATIO AL PRODUCTS, INC. - A Greater Monticello Ente prise Fund application form having been mailed to itan Recreational Products in May and returned ha' been followed up by a letter stating the inf rmalapplication for requested:GMEE did meet the general GMEF policy guidelines. Thereafter the ompany must make formal loan application at their design ted lending institution. At this time no formal pplication has been requested, however, in conversation with the commerical lender the first thing is for th owner, Wright County State Bank and Titan Recreatio 09.1 Products to negotiate and agree to a purchase p ice of the facility (Old Best-in-Webb). The request for the use of TIF for the proposed 5,000 sq ft paint roo expansion is not feasible because when the numbers are applied to determine the annual base year adjustment factor (average over five years) times the basecapacity value causes an increase inflation of t e property in the second year to be greater than te new capacity value. State Statutory dictates the a justment factor be applied to only TIF Economic D"stricts which means the difference between the tax increm nt and the adjusted tax increment is retained for d"stribution between the county, school, city and hospi 09.1 districts. Potential of 20 jobs. . BONDHUS CORPO Fund applicati the informal a general policy need be applie institution. 6 jobs. TIM MORIARTY - in one of the plans were to potential use financing pack due to Mr. Mor BRIDGEWATER TE of Bridgewater their cold sto Road 39 across Because the pr is a non confo City Ordinance encourage relo . TION - The Greater Monticello Enterprise n form was returned and a letter stating plication for requested GMEF met the guidelines and formal loan application now for at their designated lending xpansion for a heat treat room for additional Mr. Moriarty still remains interested ity's subdivided industrial lots and eet at his office to explain the f the GMEF and to look at alternative ges however the meeting was cancelled arty being sick and has been rescheduled. EPHONE COMPANY - the HRA was advised s plan to rehabilitate and expand age at the site located on West County from the City Maintenance Bldg. perty is zoned PZM, the planned expansion ming use and require an amendment ~ The HRA is working on a proposal to ation to the Industrial Park. IDC MINUTES - 6/22/89 PAGE 4 . CONTINUED. 4. . . 6.000 sq ft Off city financial in Monticello w, the company. P 135.000 sq ft M supplier of gla has requested f development gui within the next: 150. The calul required amount: for inclusion 0' ce Complex - an inquiry of ssistance for an office complex s calulated and presented to tential of 20 jobs. g/Warehouse/Office Bldg - the lead s for the Anderson Window Company nancial and City Ordinance general elines to relocate a facility 2-3 years. Potential employment of tion of parking spaces. setbacks. of land and etc. are being determined the Monticello promotional package. FOOD PROCESSING COMPANY - No updated news to report of the Washingt n State based company who requested the need for 20 acres. The last report was the construction of a facility in 0 tstate Minnesota with the company's next expansion to be in Minnesota. IDC members inquired of the site selection to be in Pine City. Ken Maus suggested Koropchak call Pine City to check out the "nquiry. BROADWAY SQUAR that closing b Limited Partne Expected begin completion by HRA bid spedf with Mr. Veit INFECTIOUS WAS IDC of a real based company land for the c facility. The conditional us IDC sees that Potential of 4 realtor that t was the denial PROJECT - Korpchak informed the IDC ,tween the HRA. FmHA. and Broadway Square ship was completed on June 14th. ing construction in mid July. Demolition eit & Company hasn't been completed to cations however city staff has met nd outlined the uncompleted work. E FACILITY - Koropchak informed the state firm inquiring for a Florida ooking for 2-3 acres of 1-2 zoned nstruction of a bio-medical waste City Ordinances does require a permit for such a facility. The s a real controversial issue. -50 jobs. Koropchak informed the e past practice of the City Council of any city financial assistance. Ken Maus asked Koropchak to research other Cities on the procedure r program used to legally defer taxes. IDC MINUTES - 6/22/89 PAGE 5 . 5. CONSIDERATION OF EXTENDED A A SERVICE UPDATE. Koropchak asked the IDC memb rs for suggestions of people to recruit for collection of the neceS ary petition signatures. A person had been hire but th~ fell through. Ken Maus suggested L. Gilham or some f her friends. Koropchak reported she had telephoned he Public Utilities Commission for the ruling on Buffalo. eported was the Administrative Law Judge recommended that E S routes between Buffalo and the Rockford, Hanover, Hame~, Fernbrook, and downtown exchanges proceed to Phase ~II. The Commission agreed to Rockford only. Zimmerman w~s ruled EAS to Anoka and Elk River only. Request for additional signatures for the Monticello petition will continue. 6. CONSIDERATION OF THE IDC BAN UET: DATE, SPEAKER, AND PROGRAM. The IDC agreed to Monday, O~tober 30, 1989 as the date for the annual IDC Banquet. The speaker and program plans were tabled to the July meeting. 7. CONSIDERATION TO REVIEW MANTE INTERNATIONAL, INC. LETTER OF INTENT. . Koropchak pointed out corrections needed on the Letter of Intent that the Monticello Economic Development Committee be changed to the Monticello Industrial Development Committee and the Greater Monticello Enterprise Fund does not fund working capital. Dale Lungwitz noted the date of September 31 be changed to September 30 as September h s only 30 days. When the corrected copies arrive Koropchak will proceed to have Chairperson Johnson execute as necessary and pIce in the mail to necessary parties. 8. OTHER BUSINESS. None. 9. ADJOURNMENT. The IDC meeting adjourned at 8:30 AM by consensus of the group. ~.. '<:6\C~ L..9~~ Ollie Koropchak IDC Executive Secretary .