IDC Agenda 04-21-1988
.
AGENDA
MONTICELLO INDUSTRIAL DEVELOP ENT COMMITTEE MEETING
Thursday. April 21. l' 88 - 7: OOAM
City Hall
MEMBERS:
President Shelly Johns
Treasurer Lowell Schru
Dale Lungwitz. Harvey
Joel Winkelman. Dan Ca
Koropchak
n. Vice President Don Smith.
p. Arve Grimsmo. Rick Wo1fste11er.
endall. Ron Hoglund. Jay Morrell.
1son. Linda Mielke. and Ollie
1. Call To Order.
8 IDC Minutes.
~~Il~ N~ t.-~v..-
2.
Approval of the
DC Financial Statements.
3.
Consideration To Review the
4.
Consideration To Review the
a Local Labor Survey and to
ubcommittee's R~commendation for
onsider the Approval of It's Funding.
5. Consideration to Review the : ubcommittee' s Prbgress and 'Schedule for
the Establishment of a~- Loca' Economic Development Fund.
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 Development Manual. and
.
7. Summary of the Star City
rtification Visit.
8. Review of Industrial
9. Other Business.
10. Adjournment.
.
.
MINUTE
MONTICELLO INDUSTRIAL DE
Thursday, March
City Hal
ELOPMENT COMMITTEE MEETING
7, 1988 - 7:00AM
MEMBERS PRESENT: President Sh lly Johnson, Don Smith, Linda Mielke,
Harvey Kenda 1, Dale Lungwitz, Arve Grimsmo, Joel
Winkelman, R ck Wolfsteller, Jay Morrell, Ron
Hoglund, and Ollie Koropchak.
MEMBERS ABSENT: Dan Carlson a d Lowell Schrupp.
GUEST: Assistant Administrato Jeff O'Neill.
1. CALL TO ORDER.
President Shally Johnson c lIed the IDC meeting to order
at 7:05AM and welcomed Mr. O'Neill to the meeting.
2. APPROVAL OF THE FEBRUARY 1 , 1988, IDC MINUTES.
A correction to the minute was made by Don Smith to substitute Terry
Duffy's name,Winkelman's V ce President of Construction, in
place of Supt. Mike's name as a representative from Winkelman
Building Corporation for a invitation to a joint meeting between the
company and the IDC. Joel Winkelman made a motion to approve
the February 18, 1988 minu es, seconded by Harvey Kendall.
With no further discussion. the motion passed 11-0.
.
3. CONSIDERATION TO REVIEW TH MEETING HELD BETWEEN THE IDC AND
WINKELMAN BUILDING CORPORA ION.
President Johnson summariz d the joint meeting held between: the
Winkelman Building Corpora ion and the IDC as a productive
meeting. Keeping in mind he IDC objectives, President
Johnson, asked the IDC for their reactions and for follow-up
recommendations to resolve the concerns voiced by the
builder. Does the City ha e guidelines for developers?
Jeff O'Neill is in the process of writing a manuel for
sub-divisions, Rick Wolfsteller indicated other policies
need to be written. Mr. Ke dall expressed he didn't feel
a builder needed to ask for guidelines but the city should
automatically hand them out with new development. Who
approves permits and plans for the City? Once the city
has approved the plans, no ore surprises should come
to the developer/builder fa additional cost of change
of plans, this should be ab orbed by the city. More than
one committee member expres ed this concern both for
residential and commerical/ ndustrial building. Mr. Lungwitz
related that many builders ave expressed to him, they are
done building in the City b cause the cost is greater,
much easier to build in the township (cost and regulations).
harder to sell in Monticell. Jay Morrell questioned the
philosophy of the city staf? Is it non-cooperativeness and
pure economics or are de eloper/builders welcomed as
customers with the attitude toward workable. Does the
city staff recognize the di ect benefit to the city at .
large with economic develop ent? Mayor Grimsmo expressed
there are city problems whi h need to be resolved by
coordinated efforts of the taff, IDC, and City Council.
.
.
3.
CONTINUED.
Don Smith related his exper
for expansion, thereafter,
The developer then needs to
surprise is no surprise."
overcome the precept ion tha
development. It's tough to
Ordinance and cost issues:
1. Landscaping ordinance
2. Sewer and water hook-
3. Building permit fees
4. Engineer cost passed
Recommendations by the IDC.
1. Economic development
2. Comparative cost for
in Monticello and nei
3. Continued follow-up 0
our concerns.
4. City expenses project
and comparative commu
5. Develop cooperative a,
effective communicati
IDC MINUTES - 3/17/88
ence with having attained financing
otified of city changes in plan.
refinance. Don repeats, " Best
he City of Monticello needs to
's been created toward economic
deal with, but is serious.":
p fees
n to developer/builders
anual.
esidential and industrial development
hboring communities.
first report for strength to verify
d over five years to operate in Monticello
ities.
titudes within the City staff through
n, hold staff meetings and policies.
.
Jeff O'Neill stated the Cit should please the customer (developer/
builder) yet uphold the law.
The City staff might call a meeting with residential and commerical/
industrial developer/builde s to discuss city guidelines, for
open discussion, and to res lve the preception of Monticello
a negative place to develop.
President Johnson repeated
the IDC and the City Staff.
need for open communication between
4. CONSIDERATION TO UPDATE THE MONTICELLO LABOR SURVEY.
The IDC members were in agr ement that the Monticello
Labor Survey needs to be up ated. This verified by
Winkelman's opinion, Hutch! son Technology's needs,
and Mr. Foster Merrill's co cerns of available labor
force. A committee of Harv y Kendall, Jay Morrell, and
Ollie Koropchak will resear.ch options for collection of
labor data and make areca endation to the IDC at the
next meeting.
5. CONSIDERATION TO CONTINUE ESTABLISHMENT OF AN ECONOMIC
REVOLVING LOAN FUND.
Jeff O'Neill explained that in Watertown the city made
a cash deposit in the bank for the bank to use to
assist economic development at 2% below prime up to
five years. Another fundig method for the Revolving
Loan may be a percentage of profits from the sale of
pull tabs in Monticello. he committee is to continue
with the formation of a reolving loan fund and report
back to the IDC.
.
IDC MINUTES - 3/12/88
.
6. REPORTS.
Reports given by Koropchak on contacts with Sun Patio and
Fingerhut; status report on the IDC Banquet speaker, the IXI
Properties, and HRA's optio agreements with Ste1ton's, Jones',
and O'Connor; and reminder of the Star City Recertification
Visit on March 23, 1988 were accepted by the IDC.
7 . ADJOURNMENT.
The IDC meeting adjourned by consensus of the group.
~~o
Ollie Koropchak
Executive Secretary
Monticello IDC
.
.
IDC AGENDA - 4/21/88
.
3. CONSIDERATION TO REVIEW THE I,DC FINANCIAL STATEMENTS.
A. REFERENCE AND BACKGROUND.
Enclosed is a recap of the revenues and disbursements for
the period, August-March, 1988, of the IDC's two Wright
County State Bank accounts and the Security Financial Banking
and Savings account. Also i~ a comparison of year 1986,
1987, and 1988. This informetion is provided to assist the
IDC in the decision and/or alproval of the Labor Survey
expenditure.
The over-all IDC budget clea ly indicates if the IDC would
wish to develop target marke ing, advertise (magazines,
promotional items, etc.), or use professional consultants
as many other communities ha e; our budget wouldn't allow
for this. Option: Expand t e proposed Economic Development
Budget for the 1989 City Bud et.
I suggest the committee revi w the proposed 1988/89 IDC
Budget, make appropriate adj stments, and approve.
4, CONSIDERATION TO REVIEW THE UBCOMMITTEE'S RECOMMENDATION
FOR A LOCAL LABOR SURVEY AND TO CONSIDER THE APPROVAL OF
IT'S FUNDING.
.
A. REFERENCE AND BACKGROUND.
The Labor Survey Subcommitte of Jay Morrell, Harvey Kendall,
Jeff O'Neill, and myself met on April 14 with a representative
from a professional company and from a college. Invitations
were extended to two profess.onal companies and two colleges
for labor survey proposals.
Mr. Patrick Pelstring represented Business Development Services,
Inc. (BDS), 8990 Springbrook Drive, Minneapolis.
Telephone Mail
Sample: 300-350 Sample: 900
Questions: 20 Follow-up by post card
Survey too \o~~ Anticipate a return rate of 40-50%
telephone 20-22 questions
$3,775.00 Use of City stationary and Mayor's
signature for cover letter
Questions are representative samples
(Fit your community)
$3,275.00
Business Development Center
Mr. Tim Allen represented tIe Small
at St. Cloud State Universi y.
Telephone
No proposal
.
Mail
Sample: 650
Follow-up by post card
Return rate of 30%
20 questions
Use SCSU stationary and hand
written envelopes (better response)
$2,633.32
..
4. CONTINUED.
~
IDC AGENDA - 4/21/88
Ms. Jeanne Parker of SNG Resea ch Corporation, P.O. Box 415,
Rochester, MN, was unable to a tend but submitted a written
proposal.
Telephone MAIL
Sample: 300 Sample: 430
Questions: 28 Return rate of 50%
Equal number of Follow-up with telephone call
males and females No incentive used
All members of house- Questions: 28
hold over 16 $4,295.00
$4,400.00
Mr. John Hensverk
since the college
expertise in this area,
appropriate to submit
for future resources.
epin Junior College expressed that
program, they haven't developed
re, didn't feel it would be
1 but to consider the college
All proposals included the review of the existing survey and
analysis of needs, implementation of survey and data collection,
and analysis of data/preparation of report.
The recommendation by the sub ommittee was to negotiate a
contract with BDS (cost f1exi 1e) for a Local Labor Survey
by mail with IDC participatio of the preliminary drafting
of the survey questions and s rvey area, and to negotiate a
guaranteed number of response. This recommendation is based
on 1) the professionalism of he company, 2) the cost is within
the IDC budget, and 3) for ID identification with the company
for potential continued use 0 their additional services.
.
B. ALTERNATIVE ACTIONS:
1. Recommendation of the sub ommittee.
2. Selection one of the othe two proposals from SNG Research
Corporation or SCSU's Sma 1 Business Development Center.
3. Deny all presented propos 1s and start over.
4. Drop the Labor Survey pro ect.
C. STAFF RECOMMENDATION.
Recommendation by the subcomm ttee and their rationale was
stated above.
.
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MONTICELLO INDUSTRIAL D
FINANCIAL S.
March 17,
Prepared by Oll
WRIGHT COUNTY STATE BANK
CHECKING ACCOUNT # 1011692
WRIGHT COUNTY STATE BANK
MONEY MARKET ACCOUNT # 72057
VELOPMENT COMMITTEE
RY
988
e Koropchak
$ 284.88
$ 5,702.96
SECURITY FINANCIAL BANKING & S VINGS
MONEY MARKET ACCOUNT # 50580 0868
BALANCE, March 17, 1988
IDC ACCOUNTS
.
.
$ 3,534.60
$ 9,522.44
. MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Wright County State Bank
Checking Ccount
BALANCE, July 31, 1987 $ 129.43
DEPOSITS:
Banquet Tickets
August 14, 1987 $ 225.00
Banquet Tickets
October 16, 1987 150.00
TOTAL DEPOSITS $ 375.00 $ 375.00 $ 504.43
WITHDRAWALS:
Judy Kruse 11279
January 7, 1988 $ 42.40
Mfg. News Inc. 11280
January 27, 1988 78.85
MIDA Membership 11281
February 19, 1988 95.00
TOTAL WITHDRAWALS $ 216.25
SERVICE CHARGES:
August, 1987 .80
September, 1987 .40
. October, 1987 .40
November, 1987 NC
December, 1987 NC
January, 1988 1. 00
February, 1988 .70
TOTAL SERVICE CHARGE 3.30
TOTAL WITHDRAWALS AND SERVICE HARGE $ 219.55
BALANCE, March 17, 1988 $ 284.88
.
. MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Wright County Sta e Bank
Money Marke
BALANCE. July 31. 1987 $ 9.308.95
DEPOSITS:
1987 Chamber Contribution
September 12, 1987 $ 2,800.00
1987 City Contribution
March 17, 1988 5,000.00
TOTAL DEPOSITS $ 7,800.00
INTEREST:
August, 1987 $ 36.98
September. 1987 44.93
October. 1987 53.44
November. 1987 48.64
December. 1987 52.20
January. 1988 52.42
February, 1988 49.25
TOTAL INTEREST $ 337.86
TOTAL DEPOSITS AND INTEREST $ 8.137.86 $17,446.81
. WITHDRAWALS:
Dino's Deli
11515 March 3, 1988 $ 59.36
City of Monticello
11516 March 17, 1988
1987 Salary 1 .684.49
TOTAL WITHDRAWALS $1 ,743.85 $11.743.85 $ 5,702.96
BALANCE, March 17. 1988 $ 5,702.96
.
.
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Security Financial Ban ing & Savings
Money Marke
Balance July 24. 1987
$ 3.427.06
-0-
$ 15.31
15.38
14.95
15.52
15.08
15.62
15.68
$ 107.54
$ 107.54 $ 3.534.60
-0-
$ 3.534.60
DEPOSITS:
INTEREST:
August. 1987
September. 1987
October. 1987
November. 1987
December. 1987
January. 1988
February. 1988
TOTAL INTEREST
TOTAL DEPOSITS AND INTEREST
WITHDRAWALS:
BALANCE. March 17. 1988
.
.
IDC AGENDA - 4/21/88
.
5. CONSIDERATION TO REVIEW THE UBCOMMITTEE'S PROGRESS AND SCHEDULE
FOR THE ESTABLISHMENT OF A L CAL ECONOMIC DEVELOPMENT FUND.
The IDC Subcommittee of Dale Lungwitz, Linda Mielke, Joel
Winkelman, Assistant Administrator Jeff O'Neill, and myself;
along with MDTED Technical ssistant Director David Nelson
met on April 19 and a brief summary follows.
The establishment of a Revol ing Loan Fund should be for public
purpose not for a specific company.
DEFINITIONS:
Policies:
The RLF policies established for the public purpose
will be written by the subcommittee, reviewed by
.
the IDC, and
City Council
Board of Dire
review the Bo
Public Purpose:
* 1. Public in
to allow
footage (
new jobs.
* 2. Assist no
worthy fe
credit wo
3. Public in
jobs and
interest
4. Public in
instituti
a bank's
Operation: The adminisra
City Council.
(rules and re
administrated
Staff.
pproved by the City Council. The
ill approve the policies as guidelines for the
tors (appointed by the City Council) and will
rd's actions, quarterly or semi-annually.
entive for credit worthy businesses (industrial)
xpansion sooner for additional building square
ncrease tax base) and for the creation of
-credit worthy businesses (start-ups) with
sibility studies. (Deny all historical non-
thy businesses).
entive is labor intense, increase in
ncrease in tax base. Not to lower
ates.
entive is used in a second seat to private
ns (bank financing) and is not intented as
rutch.
ion of the policies as approved by the
The policies are the day to day guidelines
ulations) of the loan program to be
by the Board of Directors and City.
RECOMMENDED METHODS OF FINAN ING:
1. Companion Direct Loa - Example: Equity, 20%; RLF, 30%;
and Bank, 50%. ( LF negotiate subordination position
this depends equ ty. RLF loan is leveraged and the
lower interst ra e on the RLF lowers the effective
interst rate on he entire project.)
2. Participation Loan - RLF buys a portion of the loan
(Bank does financial analysis for the RLF, RLF is not in
a subordinate posit on, no collateral required by the
RLF, and the loan p ovides a lower interest rate).
3. Guarantee Loans -RLF guarantees a portion of the bank loan.
(Handle personal and real estate guarantees separately).
.
USE OF
1.
2.
3.
PROCEEDS:
Real Property Acquis tion
Real Property Rehabi ition
Machinery & Equipmen
AND CONDITIONS:
Loan Size - Minimu , $5,000.00 and Maximum, $25,000.00
with exceptions. ne job per $5,000 loan or $20,000
increase in proper y valuation per $5,000 loan.
Leveraging - Maximm loans size as function of other
financing/equity i project.
Loan Term - Short/ edium/long, as a function of life of
assets purchased.
Interest Rates - F xed rate (up to 2% below Minneapolis
prime rate).
Loan fee -
Prepayment Policy
Deferral of Paymen s -
Interest limitatio
Business equity re
What is the purpos
.
5. CONTINUED.
TERMS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
IDC AGENDA - 4/21/88
on guaranteed loans
uirements: in project and/or business
? Public purpose
COLLATERAL:
1. Liens on Real Prop rty in Project (Deeds of Trust)
2. Liens on Real Prop rty in Business (Deeds of Trust)
3. Liens on Real Prop rty Held Personally (Deeds of Trust)
(Avoid all exempt roperties) (not homestead, can be
investment proper y).
4. Machinery and Rqui ment Liens (U.C.C.-l)
5. Personal and Corpo ate Guarantees.
(Always have both uarantees for entire amount).
.
GENERAL ADMINISTRAITON:
1. Program Marketing
2. Monitoring and Rep rting Administration
* 3. Confidentiality of Client Information
4. Conflict of Intere t Policy
5. Equal Employment 0 portunity Policy
6. Attorney review of all contracts and legal forms
7. Collection and For closure Policy.
.
ORGANIZATION:
1. Private non-profit
for private contri
and formal applica
Recommendation mad
final approval bas
policies. Some Ge
out (see list abov
2. EDA - Rules for th
Legislation, there
Possible potential
Development Admini
Also questionable
The EDA would serv'
Board of Directors
responsibility the
3. HRA - The HRA role
HRA can levy up to
would be subject t
organization (501-3C). Tax exempt
utions. Staff does preliminary
ion and analysis of business plan.
to the Board of Directors for
d on the approved loan program
eral Administration is hired
) .
EDA will not be written until 1989
ore, the RLF would not become active.
to levy 3/4 of a mill for Economic
tration but not for loan fund.
f public meeting law would apply.
in the same capacity as the
roles described above and the staff
same.
would be the same as the EDA. The
1 mill for certain projects and
the public meeting law. Other
.
IDC AGENDA - 4/21/88
5. CONTINUED.
duties remain the same as described above. (The concern
of the public meeting law would violate the importance of
the confidentiality of Cl ent Information).
AVAILABILITY OF FUNDING:
Goal: $200.000.00
1. City Liquor Store
2. Public Utilities
3. Private Funding
Replenish Fund: UDAG
at eq
annua
und
rant repayment started January 31. 1988
al monthly payments of $2.330.95 for an
total of $27.971.40 for 12 years.
This general summary of y sterday's meeting will be reviewed~
and continued details and policies written at the next
subcommittee meeting to b held before the next IDC meeting.
Communities with establis ed RLFs wi.' be contacted for input.
Madison
Jackson
Suak Centre
Lakefield
Fergus Falls
.
.
IDA AGENDA - 4/21/88
.
6. CONSIDERATION OF FOLLOW-U ON THE INDUSTRIAL UP-FRONT FEES
AND PROJECTIONS FOR THE C TY OF MONTICELLO, ON RESIDENTIAL
UP-FRONT FEES, CITY ORDIN NCES, CITY DEVELOPMENT MANUAL,
AND CITY STAFF COOPERATIO .
.
City of Monticello Indust ial Projections to be presented at
meeting.
Comparative residential uI-front fees to be presented at meeting.
City Building Ordinances or Industrial Zoning - parking lots
(paved or gravel), landsc~aping (amount required), and curb and
gutter (required or not n quired). At this time, it is of the
opinion of Jeff O'Neill ard myself to maintain the current
ordinance regarding the tlree items mentioned above. The ordinance
was adopted to establish c quality standard industrial park and
existing companies want tc maintain that standard. The existing
companies are asking if tbe ordinances are being enforced.
Jeff and myself are looking at alternate ways to assist companies:
a). Landscaping, parking lots, curb and gutter can be part of
the TIF budget providing sufficient increment is generated to
retire the debt service. b). May be included in project cost
of revolving loan.
City Development Manual has been written by Jeff O'Neill for
for sub-divisions. A TIF application form has been written
by Koropchak.
City Staff Cooperation - Establish staff policy motto,
" Monticello, can we help you?" Open for suggestions from
the IDC.
.
7.
SUMMARY OF THE STAR CITY
.
Thanks to Shelly Johnson an
Star City Recertification V
Harry Rosefelt, Gerry Wenne
reported 72 cities/counties
with visitation for 1988 re
Comments for a Revolving
ERTIFICATION VISIT.
Don Smith who attended the
sit with State representatives
, and Bill Coleman. Mr. Rosefelt
are designated as Star Cities
ertification to 42 communities.
or Economic Fund establishment.
1. For public purpose n for specific company.
2. Establish framework.
a. Very define targe needs
b. Number of new job
c. Policies
d. Deciciion roles
3. Watch State Legislat
a. Potential to lev mill for the administration
of economic deve 'opment not for RLF.
b. Coordinate with RA to levy 1 mill.
4. Contact David Nelson, Technical Assistant Director.
5. Community has quick nd greater ability to negotiate
with company. (Flex bi1ity)
.
Key is
1.
2.
3.
4.
5.
Target Marketing
Existing products pr
Existing raw materia
Distribution (transp
Availability of labo
Availability of raw
More professionalism in eco omic development (ability to sell paper).
The 1988 Monticello Star Ci y Recertification Manu~l will be
available for review at the IDC meeting.
8. REVIEW OF INDUSTRIAL CONTAC
a) .
Sun Patio - After init
second proposal with t
land acquisition of 6.
free of assessments an
able to make contact w
offer of $1.00 for Ian
of 25 jobs the first y
square foot precast fa
a1 contact with Mr. Latour on a
e use of TIF to write down the
1 acres in the Industrial Park,
1988 taxes, I have not been
th him. He indicated Becker's
and Becker's low taxes. Employment
ar and construction of a 23,000
ility.
b). Excalibur Contracting, Inc., Elk River and St. Cloud.
President Michael Embe ton. Wood-work company.
Employment of 30 jobs nd construction of a 22,000 square
foot masonary facility. Prepared TIF options, met
March 30, Mr. Emberton will review the information,
additional information mailed April 4.
.
c) .
Certified Tool Corpora
required HRA informati
Block 1, Oakwood Indus
Employment of 3 jobs,
ion, Mr. Tim Moriarty is preparing
n for the use of TIF for Lot 1,
rial Park Second Addition.
,400 sq ft concrete building, 1.21
acres.
.
8. CONTINUED.
IDC AGENDA - 4/21/88
d. Darter Plastics - Wall Salovich. plastic molding.
Going to Becker, newspa er article of no merit.
Monticello taxes are to high.
e.
Pueringer Distribution,
Barrett Columbo and own
company has 300,000 sq
in Chicago area. Only
300-400 jobs. National
reduction of transporta
get details of company
50 acres.
f.
Chuck Wheeler, Independ
a plastic manufacturing
10,000 sq ft existing f
lease back.
9. OTHER BUSINESS.
Rice, MN. Contact person,
r, Doug Pueringer. Existing
t building, plans are to expand
alk stage to relocate in Minnesota.
distribution, 70-80 trucks,
ion cost prime concern. Will
ssumptions and call back. Possible
nt Consulting Services. Represents
firm from St. Cloud. 6,000 to
cility, 15 new jobs or built to suit,
Chamber of Commerce meeting today, 12:00 noon at the River Inn,
tour of NAWCO Minnesota, Inc. following lunch.
.
.
,;i.....~."..
-:>..~.
Montie 110
Industrial Developmlent Committee
250 East Br dway
Monticello, Minnes ta 55362
Phone (612) 2 5-2711
~...
.
April 15, 1988
Dear Mr. David Nelson and Subcommittee Member:
The Industrial Development Committee S bcommittee of Dale Lungwitz,
Linda Mielke, Joel Winkelman, Assista t Administrator Jeff O'Neill,
and myself; along with MDTED Technica Assistant Director David
Nelson will meet Tuesday, February 19, 1988, 1:00PM at the City
Hall, 250 East Broadway, to reviewal ernative methods for the
establishment of a local economic fun .
rmr~
ciIU !!Ir'T
ltOMO.'t
OlYElO,.nT
Methods of Financing:
1. Direct Loan - the direct loan can range from a small portion
of the total pr ject cost to 100% of the project
cost. (Most ri ky, most profitable, higher staff
responsibility)
2. Companion Direct Loan - City 0% of the total project cost with
the remaining 0% coming from the borrower himself
or a private se tor lender. (City has subordinate
position on the loan. City loan is leveraged
and the lower i terest rate on the City money lowers
the effective i terest rate on the entire project.)
3. Participation Loan - City buy ng a portion of the loan. (Bank does
financial analy s for City, City is not in a
subordinate pos"tion, no collateral required by
City, loan prov"des lower interest rates.)
4. Linked Deposit - City funds a e deposited into an account at
an approved financial institution. (The institution
makes the loan to the business borrower under the
City guideli es. The interest rate on the bank's
loan is red ced because of the City dollars which are
deposited w"th the bank.)
5. Guarantee Loans - City guara tees a portion of the bank loan.
.
Bank Participation: 1. Rotation
2. Low bid
.
Use of
l.
2.
3.
4.
5.
6.
7.
Proceeds:
Real Property Acquisition
Real Property Construction
Real Property Rehabilitation
Machinery & Equipment
Working Capital
Business Buy-Outs
Developments Costs (Engineer ng, Architectual, etc.)
page 2
.
Terms and Conditions:
1. Loan Size - Minimum and Maxim m stated in dollars.
2. Leveraging - Maximum loan siz as a function of other financing/
equity in project.
3. Loan Term - Short/medium/long. as a function of life of assets purchased.
4. Interst rates - Low/ medium/ igh. can be a function of project type.
asset to be inacned. employment. or fixed (% below
prime rate).
5.
6.
7.
8.
9.
Loan fee -
Prepayment Policy -
Deferral of Payments -
Interst limitation on guarant
Business equity requirements:
ed loans
in project and/or business
Collateral:
1. Liens on Real Property in Pro ect (Deeds of Trust)
2. Liens on Real Property in Bus ness (Deeds of Trust)
3. Liens on Real Property Held P rsona1ly (Deeds of Trust)
4. Machinery and Equipment Liens (U.C.C.-l)
5. Personal and/or Corporate Gua antees.
.
General
l.
2.
3.
4.
5.
6.
7.
Administration:
programm Marketing
Montioring and Reporting Admi
Confidentiality of Client lnf
Conflict of Interest Policy
Equal Employment Opportunity
Attorney review of all contra;
Collection and Foreclosure Po
istration
rmation
olicy
ts and legal forms
icy.
Availability of Funding;
Goal: $200.000.00
Replenish fund: UDAG Grant repa ent started January 31. 1988 at
equal monthly pa ments of $2.330.95 for an annual
total of $27.97.40 for 12 years.
City Liquor Store Fund
Utilities
Private funding
Organization:
1. Establish a private non-prof
Tax exempt for private contr
and analysis. Board of Direc
approval. and City Council m
Administration is hired out
2. Same as above except no priv
Staff and the current HRA wo
t organization (50l-3C)
butions. Staff does application
ors and staff makes preliminary
kes final approval. General
see list above).
non-profit organization is established.
make preliminary approval.
.
3. With Participation loans and or Linked Deposit the banks would
be general administrator.
,..--....,,'.
.
.
-
page 3
This is a brief summary of questions
should review. Additionally, both Mr,
suggest other alternatives and Mr. Ne
summary if necessary.
See you Tuesday.
Sincerely,
~ \f.."O'o~~"
Ollie Koropchak
Economic Development Director
cc: File
r alternative methods the committee
O'Neill and Mr. Nelson will
son will elaborate on the
......,...----..'--- -,.--' ,_._,-,,-,,~,-,._..,._.---.....-.....------
,...,:.:~.'
.
.
.
Monti ello
Industrial Develop ent Committee
250 East B oadway
Monticello, Minn sota 55362
Phone (612) 95.2711
.:;-~:, ~~~~,:j#W'
April 7, 1988
Dear IDC Member (Labor Survey
C smilU~r.r
FOR '
ICOIO "IIC
OIYllO..UT
bcommittee) :
At the preliminary meeting of t e proposed Monticello Labor
Survey, the consensus was to extend an invitation to SNG Research
Corporation, Rochester, MN; Bus,"ness Development Service, Inc.,
Minneapolis, MN; and St. Cloud State University, Small Business
Development Center, St. Cloud, to present their labor
survey proposals in person, the ebye, allowing the subcommittee
a chance for first-hand questio s and answers. From these
presentations, the subcommittee will make a recommendation
to the IDC at their April 21, 1 88 meeting.
Tentatively, the presentations
April 14, 1988, 1:30PM at the C
of Business Development Service
(see enclosed proposal), Ms. Je
Corporation is unable to attend
cost estimates), and Mr. Tim Al
Development Center, SCSU is unc
be in contact with Mr. Allan on
1"11 contact you with confirmat
Mr. Jeff O'Neill, Assistant Adm
meeting.
scheduled for Thursday,
ty Hall. Mr. Patrick Pelstring
, Inc. will be here at 1:30PM
nne Parker of SNG Research
(see enclosed proposal with
an of the Small Business
rtain at this time. I will
Monday, April II, thereafter,
on of our April 14 meeting.
nistrator, will join us at this
Have a good weekend. I'll cont ct you on Monday.
Sincerely,
~ '~mc~~
Ollie Koropchak
Executive Secretary
Monticello Industrial Developme t Committee
Enclosures
cc: Jay Morrell
Harvey Kendall
Jeff O'Neill
File
SNG
RESEARCH CORR
.
507 -285-1026
P.O. Box 415 . Rochester, Minnesota 55903
OBJECTTVES OF THE STUDY
The major objectives of a typica labor force study would
include:
1. To determine population's em loyment characteristics and
availability for employment;
2. To define the occupations in which the labor force is
skilled or expsriencedi
3. To describe the distance the labor force is willing to
commute to work;
4. To ascertain labor force pay equirements;
.
6. To assess the labor
new business;
5. To determine the labor force' willingness to undergo
training for employment with
inions in regard to being
underemployed;
7. To obtain information about t e demographic characteristics
of the labor force for use in data analysis:
A. Age
B. Education
C. Occupation
o. City or rural resident
E. Sex
.
.
.
.
Estimated 1,500 households in the
10-20 mile radius. _Survey consists
of approximately 28 questions.
GY
The population for the survey
wi thin 10-20 miles of Monticell .
include all households
The sample frame will
consist of telephone numbers for the defined population. A
systematic random sample of tele hone numbers will be drawn
from the sample frame to produc at least 300
interviews.
employed to randomize
In addition, the Troldahl-Carta selection process will be
household.
This process requi
selection within each
within a household be interviewe ; the selection process is
that a specific person
for this survey) and number of
dependent upon number of adults (defined as age 16 or older
provides
true
randomization
within the household and
of
the following page.
Sampling tolerances for samples in this range are shown on
respondent
selection.
(A table for a typical sample size
range from 370 to 410 is include
All interviews will be under direct supervision,
data collection.
and interviews will be monitore to ensure the accuracy of
At least fiv attempts will be made to
contact the designated respond nt within each household.
Throughout the interviewing
will be taken to help ensure
all necessary steps
interviewing process
is a convenient, professional a d pleasant experience for
the respondent.
SNG m-
.
The Table of Sampling Interv Is, following, provides an
easy reference for determining confidence intervals. The
interval is based on the numbe of people responding to a
question and the variation of heir answers. For example,
if the sample size of responden s for a particular question
is 400 and the percent of espondents who answer the
question in the same way is 80 ercent, then the confidence
interval for the question is . 0392 , i. e., if the survey
were to be repeated 100 times, 95 times out of 100 the
percentage of respondents ans ering the question in the
same way from the entire population would range from 76.08
percent to 83.92 percent.
TABLE OF SAMP NG INTERVALS
95 PERCENT CONF DENCE LEVEL
SAMPLE SIZE
. 370 380 390 400 410
REPORTED
PERCENTAGES
50/50 .0510 .0503 .0496 .0490 .0484
60/40 .0499 .0493 .0486 .0480 .0474
70/30 .0467 .0461 0455 .0449 .0444
80/20 .0408 .0402 0397 .0392 .0387
90/10 .0306 ~0302 ' U298 .0294 .0290
.-
.......
SNG?
.
Upon completion of the intervie
process, data will be
coded for data entry purposes. Frequencies of responses,
mul tiple cross tabulations and ther relevant statistical
tests will be performed to facili ate analysis of the data.
Specific steps to be performed b SNG Research as a part of
this endeavor include:
.
. Client consultati n
. Sample selection
. Questionnaire dev lopment
. Questionnaire pre test
. Interviewer training
. Data collection
. Data processing
. Quality control
. Data analysis and
relevance of the
We will provide two copies of a witten report, including a
review of the methodology,
findings and analysis of the da a.
All frequencies and
cross tabulations performed durin analysis will also be
provided, which will allow furthe analysis if you choose.
Upon request, additional copies of the final report will be
project;
the fee for additional opies will be dependent
completion of the
produced and may be purchased fol
upon the number of copies reques ed and the size of the
~ final report.
SNG ii!
.
.
COST
described herein, the cost of t
Based on the research object 'vas and the methodology
price is valid for 30 days
Anticipated timing requirements
proj ect is $4,400. .
This
the date of proposal.
~iix wcek~ fr0m intervievling to re'...crt. completion.
~pproximately four to
The payment schedule for this pro'ect is defined below.
· 50 percent of the cost upon acceptance of this proposal
',-!; · ,50 'percent"of'the'cos;t upon completion 'of -the research
. Submitted by:
.
Jeanne Parker
SNG RESEARCH. _ CORPORATION
Accepted by:
SNG or
Date
Date
--~ ~.,\.
.~"'&'. ,~,_I~
.~"~:,'~:,:.~
Phone (612) 295.2711
Metro (612) 333-5739
Mayor:
Arve Grimsmo
City Council:
Dan Blonigen
Fran Fair
William Fair
Warren Smith
Administrator:
Rick Wolfsteller
Public Works:
John Simola
Planning & Zoning:
Gary Anderson
Economic Development:
Ollie Koropchak
.
.
250 East Broadway
Monticello, Minnesota
55362.9245
Cit'j
I monticello
March 24, 1988
MONTI ELLO, MN 55362-9245
Mr. Norman W. Ecklund
Northern States Power
3515 3rd Street North
St. Cloud, MN 56301
Dear Mr. Ecklund:
Thank you for stopping
been my pleasure to ha
past two and one-half
Support you as NSP's N
Administrator has sho
icipation at the Indus
Annual Banquets. Your
much appreciated monit
on your retirement and
Company
in my office last week, it's
e worked and known you these
ears. I thank you for the
rthwest Division Area Relations
our community and your part-
rial Development Committee's
presents far out-weighed the
ry contribution. Congratulations
I wish you continued success.
Enclosed you will find copies of the three Business
Retention Surveys we d scussed last week. One copy
designed by the Minnes ta Department of Trade and
Economic Development ( urvey now under revision); and the
second and third surve s being local surveys. If
I can be of further as istance, please contact me at
(612) 295-2711 or (Met 0) 333-5739.
Sincerely,
Again, congratulations and enjoy your retirement.
c~~~
- /
\L't Cl
\
"'" (""'\
('-\~.-
,.'- - ~--
~'"
Ollie Koropchak
Economic Development Di ector
Enclosures
cc: File
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.
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
FINANCIAL S RY
March 17, 19 8
Prepared by Ollie Koropchak
WRIGHT COUNTY STATE BANK
CHECKING ACCOUNT # 1011692
WRIGHT COUNTY STATE BANK
MONEY MARKET ACCOUNT # 720574
SECURITY FINANCIAL BANKING & SA. INGS
MONEY MARKET ACCOUNT # 505800 868
BALANCE, March 17, 1988
IDC ACCOUNTS
.
.
$ 284.88
$ 5,702.96
$ 3,534.60
$ 9,522.44
. MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Wright County St~ e Bank
Checking Acco nt
BALANCE, July 31, 1987 $ 129.43
DEPOSITS:
Banquet Tickets
August 14, 1987 $ 225.00
Banquet Tickets
October 16, 1987 150.00
TOTAL DEPOSITS $ 375.00 $ 375.00 $ 504.43
WITHDRAWALS:
Judy Kruse 112 79
January 7, 1988 $ 42.40
Mfg. News Inc. #280
January 27, 1988 78.85
MIDA Membership 11281
February 19, 1988 95.00
TOTAL WITHDRAWALS $ 216.25
SERVICE CHARGES:
August, 1987 $ .80
. September, 1987 .40
October, 1987 .40
November, 1987 NC
December, 1987 NC
January, 1988 1.00
February, 1988 .70
TOTAL SERVICE CHARGE $ 3.30
TOTAL WITHDRAWALS AND SERVICE C ARGE $ 219.55
BALANCE, March 17, 1988 $ 284.88
.
.
MONTICELLO INDUSTRIAL DEVEOPMENT COMMITTEE
Wright County Stat Bank
Money Market
.
.
MONTICELLO INDUSTRIAL DEV LOPMENT COMMITTEE
Security Financial Ban ing & Savings
Money Marke
Balance July 24, 1987
$ 3,427.06
-0-
$ 15.31
15.38
14.95
15.52
15.08
15.62
15.68
$ 107.54
$ 107.54 $ 3,534.60
-0-
$ 3,534.60
DEPOSITS:
INTEREST:
August, 1987
September, 1987
October, 1987
November, 1987
December, 1987
January, 1988
February, 1988
TOTAL INTEREST
TOTAL DEPOSITS AND INTEREST
WITHDRAWALS:
BALANCE, March 17, 1988
.
.