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IDC Minutes 04-21-1988 . MINUTES MONTICELLO INDUSTRIAL DEVELOP~ENT COMMITTEE MEETING Thursday, April 21, 988 - 7:00AM City Hall MEMBERS PRESENT: President Shel y Johnson, Bud Schrupp, Linda Mielke, Dan Cal lson, Arve Grimsmo, Rick Wolfsteller, Harvey Kendall. Ron Hoglund, Joel Winkelman, Dale Lungwitz, and Ollie Koropchak. MEMBERS ABSENT: Donald Smith aCld Jay Morrell. 1. CALL TO ORDER. The IDC meeting was called t order by President Shelly Johnson at 7:05AM. 2. APPROVAL OF THE MARCH 17, 19 8 IDC MINUTES. . . Arve Grimsmo made a motion t approve the March 17, 1988 IDC minutes, seconded by Harvey endall, the minutes stand approved. 3. CONSIDERATION TO REVIEW THE DC FINANCIAL STATEMENTS. The committee members review Joel Winkelman made a motion IDC Budget, motion seconded included the suggestion to p reserve fund designated as a available funds every five y which is within the requirem The IDC agreed that under th (The IDC Banquet) the IDC bu expenses and project costs t communities and meet the req Grimsmo suggested that the I Budget to cover proposed pro 1989 Proposed Budget. With on the floor passed 11-0. 4. d the budget reports, thereafter, to approve the proposed 1988/1989 y Ron Hoglund. Further discussion ace $1,000.00 per year in a Labor Survey Fund which allows ars to update the labor survey nts for Star City Recertification. current resource of revenue get would not cover operating remain competitive with other irements of Star City. Arve C prepare a Economic Development ects and submit to the City's o other discussion, the motion CONSIDERATION TO REVIEW THE UBCOMMITTEE'S RECOMMENDATION FOR A LOCAL LABOR SURVEY AND TO (ONSIDER THE APPROVAL OF IT'S FUNDING. After the committee reviewed the three proposals submitted verbally and written from Bu iness Development Services, Inc., Telephone $3,775.00 or Mail 3,275.00; Small Business Development Center, SCSU, Mail $2,633.32 and SNG Research Corporation, Telephone $4,400.00 or Mail 4,295.00 and heard the subcommittees recommenation to negotiate a contract with BDS (cost flexible) for a Local Labor Survey by rail with IDC participation of the preliminary drafting of the urvey questions and survey area, and to negotiate a guarantee! number of responses. The subcommittees recommendation was based on 1) the professionalism of the company, 2) the cost s within the IDC budget, and 3) for IDC identification with 1he company for potential continued use of their additional serv ces. A motion was made by Arve IDC Minutes - 4/21/88 . 4. CONTINUED. Gr imsmota ;n.egQ t iate -:: a:~c outt:<ct-:'witb .:J~I.1S iDeS s c- :e~veiapmen t ::'S-e rvi c e s . Inc. as recommended by the stbcommittee and with a 50% guaranteed number of responses. The mo ion was seconded by Linda Mielke and passed 11-0. CONSIDERATION TO REVIEW THE iUBCOMMITTEE'S PROGRESS AND SCHEDULE FOR THE ESTABLISHMENT OF A LI CAL ECONOMIC DEVELOPMENT SURVEY. 5. . Koropchak gave a brief summa y of the Revolving Loan Subcommittee's meeting held with MDTED Davie Nelson on April 19. The meeting gave the subcommittee's guidl lines to establish policies and operation procedures for a rlvo1ving loan. Encluded in the agenda supplement was a writ en account of the summary. Some of the IDC members voiced co cerns of the application process becoming too complex and sug ested to keep it simple to remain competitive. A motion was m de by Arve Grimsmo for the sub- committee to present a final draft of the revolving loan policies and operation procedures at he June 16, 1988 IDC meeting. At that time the IDC with re iew the policies and operational procedures, recommend a1terntives if necessary. thereafter. make a recommendation to the City Council for approval of establishment and policies 0 the Revolving Loan. The motion was seconded by Bud Schrupp nd carried unanimously. Request for establishment funds woul be presented to the City Council at the same time. 6. CONSIDERATION OF FOLLOW-UP 0 AND PROJECTIONS FOR THE CITY UP-FRONT FEES, CITY ORDINANC CITY STAFF COOPERATION. THE INDUSTRIAL UP-FRONT FEES OF MONTICELLO. ON RESIDENTIAL S, CITY DEVLOPMENT MANUEL, AND . Koropchak reported she has a ked Jeff O'Neill to compute industrial comparative up-front fees an projections over a five year span on the computer. For the pupose of recruitment of industries the increased taxes and up-f ont fees by the City may be a hinderance, the question i "Why should the City make a profit?" The example of neg tiations with Sun Patio was discussed. After the projec ed land cost for Lot 6. Block 1. Oakwood Industrial Park, and based on the assumptions of 22.000 ft sq facility, Korop hak was able to write down the land cost. however, Mr. aTour indicated that land cost in neighboring communit es were less expensive. Koropchak proceded to contac the Oakwood Partnership for renegotiations, land cost wr te down was reduced to approx- imately $3.000. Approaching the City Staff to reduce the $3.000 to $1.00 with the rat onale of the assessments being paid up tront would allow th "city to invest'this money at x percent int~re~t,-bo~ev r. ~ick-Wolfste1Ier qu~itioned whether he could invest that money at the same rate of interest or higher than on t e interest being charged on the assessment roll, he felt' it came out in the wash. However. internal administra ion cost could be reduced; therebye. writing the land CDst down to approximately $1.00. . 6. CONTINUED. IDC Minutes - 4/21/88 Koropchak unable to make contact with Mr. LaTour with the new write down cost, asked President Johnson to assist in reaching Mr. LaTour. The IDC questio ed if we initially would have responded with a $1.00 land ost. would they have looked elsewhere? Do we present a urn off message by a second offer? Koropchak recommende, a subcommitee from the IDC be created and proceed to ad ress each of the concerns voiced by Winkelman Building Corporation. Subcommittee from the IDC is Shelly Johnson. D 1e Lungwitz. Dan Carlson. and Rick Wolfste11er. they will, old a joint meeting with City Staff members to resolve the issues. Koropchak is to set up the meeting. 7. SUMMARY OF THE STAR CITY REC RTIFICATION VISIT. President Johnson indicated recertifiaction visit and a1 8. OTHER BUSINESS. e and Don Smith had attended the had gone well. Jeff O'Neill presented the I C with a building permit fee survey for a residential home in Mo tice110. Buffalo. Big Lake. Elk River. Watertown, Rockford.nd Maple Grove. In comparison Monticello remain in the mid 1e range. Mr. O'Neill reported that the Monticello guide1in for ratio percentage of allowable single dwellings comparative to multi dwellings is 55%/45%. However. this is based on av i1ab1e sites not actual build or proposed dwellings. To d te this year.10 single dwelling permits and permits for 42 u its have been issued. The committee inquired about com arative costs in the townships. Basically you get what you p id for (city streets, curb. water. sewer, etc. . 9. ADJOURNMENT. By consensus of the IDC, the meeting adjourned. C3L~.1~) ~ 6\ 0 ~~-z_) Ollie Koropchak. Executive Secre ary Monticello Industrial Developmen Committee .