IDC Minutes 04-21-1988
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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.
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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
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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.
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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
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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.
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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.
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9.
ADJOURNMENT.
By consensus of the IDC, the meeting adjourned.
C3L~.1~) ~ 6\ 0
~~-z_)
Ollie Koropchak. Executive Secre ary
Monticello Industrial Developmen Committee
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