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IDC Minutes 03-08-1989 . MINUTES MONTICELLO INDUSTRIAL DE Thursday, March City Hal ELOPMENT COMMITTEE , 1989 - 7:00AM MEMBERS PRESENT: Chairperson Maus, Dennis Jay Morrell, Dave Peterso Ollie Koropc he11y Johnson, Don Smith, Ken Taylor, Ron Hoglund, Arve Grimsmo, Harvey Kendall, Dale Lungwitz, , Linda Mielke, Jim Kruger, and ak. MEMBERS ABSENT: Rick Wo1fste1 er, Dale Pogatchnik, and Lowell Schrupp. 1. CALL TO ORDER. The Industrial Development Committee (IDC) meeting was called to order at 7:04AM by Chai person Shelly Johnson. 2. APPROVAL OF THE JANUARY 19 1989 IDC MINUTES. . Arve Grimsmo made a motion to approve the January 19, 1989 IDC minutes, seconded by D n Smith, the minutes stood approved as written. 3. CONSIDERATION TO DISCUSS T E PROCEDURE TO UPGRADE OR NOT UPGRADE THE INDUSTRIAL PAR ROADS. . Early summer of 1988, the ity Council approved an evaluation study of the Oakwood Indus rial Park street system in regard to pavement strength. Thi testing was performed in July by Braun Pavement Techno1 gies and Council directed staff to upgrade and overlay those reas of lower strength last fall because the winter time ta 1e would make it difficult to complete the entire projec , however, this was not completed. Because of the fast approa hing spring and the potentiality of axle road limit posting in the park the IDC should consider a recommendation to the Ci y Council to proceed with upgrading or not upgrading the Indus rial Park roads and secondly, to discuss the potential of p sting the roads this spring. Jay Morrell presented his iewpoint on spring road posting noting that most streets w re installed when the standard was 7 ton and that the Sta e of Minnesota raised that capacity of some state hig ways simply by posting higher weight limits. In additio , he felt that posting would restrict most current Indu trial Park businesses and would be a hindrance for m rketing and resale of the park property. Dale Lungwitz i formed the IDC that the IP was created approximately 8-19 years ago and the first portion of Chelsea Road wa gravel. Life expectancy of . . . 3. CONTINUED. a road simi1iar to Chelsea briefly discussed potentia from 100% assessmment. 80/ excess Tax Increment Finan Chairperson Johnson stated Council decision. With ad and weight as the most det roads and a large percent are concrete the IDC was a for recommendation to the a motion recommending the cost analysis inclusive of upgrading the currently pa the streets with concrete weather road standard. A1 to complete the prject in necessary. to request Wrig to and from the industrial by Jay Morrell and passed A second motion was made b "in the spirit of promotin: and out of courtesy of the industrial park. the indus posted this spring." The not marketable; 2) most co roads; 3) not strictly enf and weight cause road brea: County Road 118. a 5-ton r the motion and passed 12-Q IDC MINUTES - 3/9/89 is 20 years. The committee financing of the roads o ad valorem and assessed. ing or wait for a project. financing the project is a itiona1 comments of speed iment to breaking up of the f the industrial roads today ked to consider a motion ounci1. Arve Grimsmo made ity Council authorize a a comparative cost between ed streets and/or replacing o achieve the 10-ton all o to include the probability two-year phase; and if found t County to upgrade the streets park. The motion was seconded 2-0 with Ken Maus abstaining. Jay Morrell recommending new industrial business existing businesses in the rial park roads not be reasons being: 1) if posted. unities don't post industrial rced; 4) combination of speed up; and 5) school buses travel ad. Dennis Taylor seconded with Ken Maus abstaining. 4. CONSIDERATION OF FINAL DRA T OF THE ECONOMIC DEVELOPMENT AUTHORITY ORDINANCE AND TH GREATER MONTICELLO ENTERPRISE FUND GUIDELINES. Assistant Administrator 0': eill advised the IDC that all drafted documents for the creation of the EDA. Joint Powers Agreement. and the GMEF Guidelines were reviewed by the City Attorney. His opinion was he had no major problems with the concept ut suggested language change to include non-discrimination on basis of race. sex. etc. Koropchak questioned why U AG repayment was not included and Mr. O'Neill responded he thought the repayment went to the general fund. Dale Lungwitz suggested the leverage minimum be set at 70% for Private/Public non-GMEF and 30% Public (GMEF). He further expressed his concern of the general public impression that the local banks indirectly will receive f ,ee money (line their pockets). IDC MINUTES - 3/9/89 . 4. CONTINUED. The IDC suggested the Counl il agenda stress the risk of such a program and supply upporting data with examples from other communities to 1 hy loans failed and detail how the GMEF Guidelines mi imize those risks. Also, to include the need for such program and the need for good deals (financial deci ion versus job creation decision) and the importance of confdentiality. Ron Hoglund made a motion to recommend the draft presented with the cosemetic changes suggeste by the IDC to the City Council at the Public Hear ng scheduled for Monday, March 13, 1989. The motio was seconded by Harvey Kendall and passed 12-0 with Ken M us abstaining. 5. CONSIDERATION TO ADOPT A R~SOLUTION AUTHORIZING CO-SIGNATURES ON ALL IDC DEPOSITS. Don Smith made a motion adJpt the resolution authorizing Lowell Schrupp, Ron Hog1uni, and Shelly Johnson as eligible co-signatures ona11 IDC fipancial holdings on deposit with the requirement of two signatures for any financial transaction. The motion was seconded by Jim Kruger and passed unanimously. . 6. CONSIDERATION OF INFORMATIONAL ITEMS: 1989 GOALS AND MEMBERSHIPS/ OFFICERS FOR THE IDC, THE HRA, AND THE CHAMBER OF COMMERCE. Chairperson Johnson inforned the IDC that no action was needed on this agenda item but fer the IDC to view this information as very valuable. The co~mittee briefly discussed a date for the joint meeting bet~een the HRA, IDC, Planning Commission, to be established EDA, City Council, and city staff with potential dates of Monday, June 5 or 19, 1989. This to be on the April agenda. 7. CONSIDERATION TO DISCUSS 'OTENTIAL INDUSTRIAL DEVELOPMENT PROSPECTS. Mr. O'Neill advised the c<mmittee that an undisclosed company had presented the city with a very brief outline covering their company's ackground and current thinking on facilities expansion. This was turned over to Deb Graham at Business Deve10 ment Services, Inc. After City Council's reco mendation to renegotiate with Construction Five Develop rs to reduce the length of the proposed installed st rm sewer along the easterly border of Outlot A, Const uction Five Addition and still meet city parking space ald set back requirements, Koropchak called Mr. LaFromboise to report on the Council's recommendation and to set a time for renegotiation and review site plans. . IDC MINUTES - 3/9/89 . 7. CONTINUED. Mr. LaFromboise felt they ad put in enough time on this plan between the HRA and t e City Council. The developers are currently busy enough ith other projects and do not look to develop the Montic:ello proj ect this year or may choose to consider another apartment project rather than the proposed office/wareho se facilities and mini storage. A given lead on the United Parcel Service expansion ended with a conversation with officals stating they had no plans for a relocation site or expansion in this area at this time. 8. OTHER BUSINESS. The committee asked Mr. O'Neill about the progress on the airport issue, Mr. a' eill responded that time hasn't permitted him to continue research or talks. However, the last conversation with Ji Hallila indicated he was taking the lead role. The IDC asked Jeff to report at the April meeting. 9. ADJOURNMENT. . The IDC meeting adjourned at 8:30 AM. ~ 0 ...... \~ ~ 0 E;: SL u9=a.. Ollie Koropchak, IDC Executiv Secretary .