IDC Agenda 01-21-1988
.
AGEND
MONTICELLO INDUSTRIAL
Thursday, Januar
City H
MEMBERS:
Chairperson Shelly
Treasurer Bud Schr
Dale Lungwitz, Har
Joel Winkelman, Da
Koropchak.
1. Call To Order.
EVELOPMENT COMMITTEE MEETING
21, 1988 - 7:00 A.M.
11
Johnson, Vice-Chairperson Don Smith,
pp, Arve Grimsmo, Rick Wolfsteller,
ey Kendall, Jay Morrell, Ron Hoglund,
Carlson, Linda Mielke, and Ollie
2. Approval of the December 17, 1987 IDC Minutes.
3. Welcome of New IDC Membe s: Dan Carlson and Linda Mielke.
4. Consideration of Recomme ded City Trunk Fees.
5. Consideration of Recomme ded 1988 IDC Goals.
6. Reports: Beverage Proce sing Company
Hutchinson Tec nology Inc.
Modern Quilter
7. Update on Retruitment of IDC Banquet Speaker Curt Carlson.
. 8. Other Business.
9. Adjournment.
.
.
MINUT~S
MONTICELLO INDUSTRIAL D VELOPMENT COMMITTEE MEETING
Thursday, December 17, 1987 - 7:00 A.M.
City Hall
Members Present:
Chairperso
Shelly Joh
Wolf stelle
Joel Winke
Harvey Kendall, Vice-Chairperson
son, Bud Schrupp, Arve Grimsmo, Rick
, Dale Lungwitz, Don Smith, Ron Hoglund,
man, and Ollie Koropchak.
Members Absent:
Jay Morrel
and Bruce Gagnelius.
Guests: Public Works Direct r John Simola and Building/Zoning
Administrator Gary derson.
1. CALL TO ORDER.
Chairperson Harvey Kenda 1 called the IDC meeting to order at
7:12AM.
2. APPROVAL OF THE NOVEMBER 18, 1987 IDC MINUTES.
Ron Hoglund made a motio to approve the November 18, 1987
IDC Minutes, seconded by Joel Winkelman. With no further
dicussion the motion car ied 10-0.
.
3. REVIEW AND DISCUSSION OF THE COMPARATIVE START-UP COSTS AND
WATER AND SEWER RATES WI H CITY STAFF MEMBERS.
John Simola gave a brief background on the origination of the
water and sewer hook-up fund. Established in 1983, this money,
as outlined by City ord nance, would be used for major improve-
ments to the Wastewater Treatment Plantcol1ection system and
related equipment. Jan ary 12, 1987, the City Council approved
an increase to hook-up harges and rates. Hook-up charges
increased from 250 gall ns equals one unit @ $100.00 per unit
to 250 gallons equals 0 e unit @ $300.00 per unit. This
increase for sewer hook up only. Mr. Simola expressed he
didn't feel the two ass mptions (examples used) were a fair
comparison because some comparative Cities do not presently
have the sewer treatmen capacity to accommodate such high
usage, therefore, the f es aren't comparable. Don Smith
suggested a comparison f average user industries.
.
Questioned if the City ould allow the Beverage Processing
Company to have their 0 wells and not use City water.
Mr. Simola responded th City would work it out with the
company at the appropri te time but would recommend the use
of City water because w can guarantee safe water. At one
time, the City subsidiz d the water and sewer charges by
ad valorem taxes, howe~ r, at present is based on a usage
rate which is comparabl low with surrounding communities.
The IDC views that hard theories are hard to sell and the
City may need to be more flexible to accommodate a financially
sound company to locate in Monticello. What are the benefits
for the future of our ommunity?
IDC Minutes - 12/17/87
3.
CONTINUED.
The negative image create
hook-up charges may be un
trunk fees for a more pos
by the choice of terminology,
er consideration to use
tive effect.
.
With the upcoming potenti 1 new city well and water tower,
it would be the recommend tion of the City staff to bond
for the project versus as essment.according to John Simo1a.
Don Smith expressed the n ed for the City staff and the IDC
to be partners to develop a plan which presents real numbers
to potential industrial d ve1opers. Another issue addressed
was the need to review th landscaping ordinance with regards
to the number of trees re uired. Is it realistic to require
an industry with a new 30 000 sq ft facility to plant 30
trees (2 inches in diamet r 6 inches above ground).
.
It was a general consensu
sewer hook-up charges of
that the landscaping ordi
The IDC's recommendation
sewer and water hook-up r
options for landscaping r
the name from hook-up cha
water rates based on ad v
sessment of truck fees ve
needs to become a better
among all in attendance that the
96,000.00 wss out of line and
ance may need some revision.
as for City staff to propose a new
te system, to review and propose
quirements, to consider changing
ges to trunk fees, to consider new
lorem versus usage, and to consider
sus up-front payment. The_ IDC.fee1s
ales person.
as-
the City
4. ELECTION OF 1988 IDC OFFI ERS: CHAIRPERSON, VICE-CHAIRPERSON,
AND TREASURER.
Before Shelly Johnson's acceptance as nominee for Chairperson
of the IDC, he asked Mr. enda11 to consider another term
and expressed the good jo done by the persons who had served
as Chairperson prior to imse1f. With Mr. Kendall wish to
step down from office, Mr Johnson accepted the nomination.
Don Smith accepted the office of Vice Chairperson with the
understanding he would n t move up the ladder to Chairperson
in 1989. Bud Schrupp ac epted another term as Treasurer.
Dale Lungwitz made a mot.on to approve the nominations as
accepted above for 1988 DC officers. Seconded by Arve
Grimsmo, the motion carr'ed. By consensus of the IDC, Joel
Winkelman became a perma ent member of the IDC filling the
position of John Bondhus. A motion made by Don Smith to
invite the 1988 Chamber f Commerce President and Vice Presid-
ent as members of the ID based on their length of term. The
Vice President being inv ted to create more continuity for
the IDC. Motion was see nded by Shelly Johnson and carried
10-0. Koropchak will co tact Dan Carlson and Linda Mielke
for acceptance to the mo ion.
.
I
IDC Minutes - 12/17/87
.
5. OTHER BUSINESS.
Dale Lungwitz gave Koropc ak a newspaper article from the
St. Cloud Newspaper on Hu chinson Technology Incorporated
search for an existing st ucture to fit their expansion
needs. Koropchak will co tact the company.
With the recommendations
to propose options for ho
also requested no recomme
Council for Year 1988 unt
the options.
y the IDC for the City staff
k-up charges and rates, they
dations be made to the City
1 the IDC has a chance to review
6. ADJOURNMENT.
By general consensus of t e IDC, the meeting adjourned.
QL<?Q.~) \~ClO~C~O
Ollie Koropchak ~
IDC Executive Secretary
.
.
IDC Agenda - 1/21/88
4. CONSIDERATION OF RECOMME DED CITY TRUNK FEES.
Enclosed is a copy of a roposed Industrial Sewer Hook-up
Fee Schedule as prepared by John Simola, Public Works
Director. Below,I have lugged the above proposed numbers
into the two assumptions given to you in the December agenda
supplement. Comparativ changes and adjustments are noted to
the right.
.
Assumption A. - sewer us ge of 5,000 gals/day.
5,000 gals divided by 250 gals = 20 units
First 10 units x $300 00 = $3,000.00
Second 10 units x $20 .00 = 2,000.00
Total 20 units $5,000.00
per day.
Old schedule
As proposed
Adjustment
$6,000.00
5,000.00
$1,000.00
Assumption B. - sewer us ge of 80,000 gals/day.
80,000 gals divided b 250 gals = 320 units
First 10 units x $300.00 = $ 3,000.00
Second 10 units x $20 .00 = 2,000.00
Third 10 units x $100.00 1,000.00
Thereafter 290 units
$50.00
Total 320 units
.
It is my understanding t
the use of the city line
installation and cost to
the building. I questio
to use the city lines, a
rationale, it should be
a new industry for the f
consider: One, acceptin
continue research and re
for trunk fees.
per day.
14,500.00
$20,500.00
Old schedule
As proposed
Adjustment
$96,000.00
20,500.00
$75,500.00
is fee is for the sole privilege of
A developer is responsible for the
hook-up between the street lines and
the City's rationale of a privilege
I see it from an Economic Development
privilege for the City to acquire
ture of the community. The IDC may
the proposed trunk fees. Second,
ision. Third, recommend an assessment
Other recommendations by the IDC to the City staff haven't
been discussed as of thi time.
.
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IDC Agenda - 1/21/88
.
5. CONSIDERATION OF RECOMMENDE 1988 IDC GOALS.
b) To continue working wi
industries in Monticello.
a) To host or visit at 1e st ten new business/industry
prospects during 1988.
c) To attract one or more industries during 1988 that will be
placed on the tax role of the Monticello community.
d) To develop a list of " argeted" industrial prospects.
e) To revise and update p omotiona1 and advertising literature
including pamphlets, b ochures and video tapes.
f) To revise and update t e labor survey.
g)
To continue our study
and rates, with the ul
City Council appropria
to compete with other
Minnesota, when recrui
f sewer and water hook-up charges
imate goal of recommending to the
e changes in order for Monticello
ommunites, within the state of
ing business and industry.
.
h) To finalize the financial incentives package that can be
made available, either in total or in part, to prospective
businesses and indust~ies. This package will include:
* Tax Increment Financing
* State Program
* Federal progr ms
* Monticello En erprise Revolving Loan Fund
* Loans and Gra ts from Other Agencies:
Central Mi.nesota Initiative Fund
Others
i) To establish a positi e, cooperative working relationship
between city staff an the Industrial Development Committee.
j) To obtain 2-4 pro spec s from existing industries.
k) To continue the "Star City" program.
1) To construct an indus rial building on an industrial site
in the City of Montic 110.
m) To enchance our commi tee's relationship with personnel of
state agencies that a e involved with industrial development.
n) To continue monthly I dust rial development Committee meetings
and to schedule spec a1 meetings as needed.
.
p) To continue utilizat
the Industrial Devel
the sub-committee structure within
Committee.
0) To continue the annu 1 Industrial Development Committee banquet.
q) To continue research ng the airport issue in Monticello.
.
.
.
6.
REPORTS.
a) Beverage Processing
Enclosed you will find
from Don Seelig, MK-Fer
not confirmed their sit
Mankato where an existi
needs.
IDC Agenda - 1/21/88
Company -
copy of the letter I received
uson Company. Although, I have
location, I believe the site is
g production building fit their
b) Hutchinson Technolo y Incorporated -
Initially, I contacted utchinson Technology in early
June of 1987 and again fter the articles Dale Lungwitz
and Don Smith referred 0 me. As per a telephone conver-
sation with Bill Craig n January 13, he stated it was
almost 100% final that heir expansion plans would be located
in Sioux Falls, South D kota. I asked him of the major
criteria to that decision. One, regardless of the Minnesota/
South Dakota business savings, the company was looking at
communities with popul tions of 50,000-100,000. This to
assure the availabilit of labor force at their wage
level. They don't wan to run into the same problem as
they experience in Hutchinson. Second, a community
with a college.
c) Modern Quilters -
Mr. Foster Merrill vis ted Monticello in early January.
Greeted by Mayor Grims 0 and Shelly Johnson prior to our
visit of the industria park where we observed the two
vacant buildings, IXI omp1ex and Best-In-Webb. Mr.
Merrill was most inter sted in the Best-In-Webb facility
and has no intentions 0 build. Other communities have
offered facilities for as low as $1.00. He likes the
location of Monticello but most importantly, wherever,
they locate the avai1a i1ity of a good labor force is
priority. Based on th company's intended wage scale
I referred Mr. Merrill to two local industries with
approximate equal wage According to Mr. George Phillips,
one company responded ositively on the availability of
the labor force in the Monticello area and the other
company responded neg~tively. Plans are to visit Modern
Quilters next week and present the requested additional
information to Mr. Me rill.
7.
UPDATE ON RECRUITMENT 0
As Mayor Grimsmo was de
recruit Mr. Carlson, he
meeting.
IDC BAN UET SPEAKER CURT CARLSON.
egated the IDC contact person to
will give us a short report at the
.
.
.
ENGINEERS
AND
CONSTRUCTORS
~MK-FERGUSON COMPANY
~ A MORRISON KNUDSEN COMPANY
AUlDMATED SYSTEMS DIVISION
ONE ERIEVIEW PLAZA
CLEVELAND, OHIO 44114
PHONE (216) 523.S6001TELEX 985542
January 11, 1988
City of Monticello
250 East Broadway
Monticello, MN 55362-9245
ATTENTION:
Ollie Koropchak
Economic Development Di ector
Dear Ollie:
Thank you very much for all the infor ation that was provided to us for our
site selection project.
We appreciate the high interest
confidential client locate in your
in efforts to have our
Unfortunately, our client has now located and purchased an existing
facility in another location. This decision was highly influenced by the
existing facility which is being use for immediate production.
We are highly impressed with yo r community and hopefully will be
contacting you again for another sit selection.
Sincerely,
~~
M. Donald Seelig
Manager, Industrial Planning
Automated Systems Division
MK-Ferguson Company
cc: J. Lushine
File
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Monti ello
Industrial Develop ent Committee
250 East B oadway
Monticello, Minn sota 55362
Phone (612) 95-2711
..:-.--..,.-.if"
.
December 14, 1987
Dear IDC Member:
.
The December IDC meeting will
the discussion of whether or n
image is one which encourages
to expand in our community. T
summary of comparative start-u
rates with the communities of
and St. Cloud. Enclosed is a
above four cities and to Big L
enclosed for those members who
IDC meeting, a copy of the han
returned information plus a co
Minnesota business costs.
arge1y be devoted to
t the City of Monticello's
ew or existing businesses
is meeting results after the
costs and water and sewer
uffa10, Elk River, Litchfield,
opy of the letter mailed to the
ke who did not respond. Also,
did not attend the November
outs with the summary of the
parison of South Dakota and
At the November meeting, a mmendation by Joel Winkelman
and the consensus of the commi tee was to invite Administrator
Rick Wo1fste11er, Public Works Director John Simo1a, and Bui1ding/
Zoning Administrator Gary Ande; son to meet with the IDC prior
to the next scheduled IDC meet ng allowing time for the IDC
to receive information, discus; , and evaluate if any recommend-
ations need to be brought befo e the City Council before the
Council approves the yearly ra e schedules in January. I believe the
committee-would like to gain a better understanding of -the rationale of
start-up costs and rates and i e rationale of the city ordinance
as applies to the industrial b sinesses. Please consider your
thoughts and questions to address the city staff as this is
an educational meeting for both the staff and the committee
on the importance of economic development for our community
and how it affects every comm nity resident.
See you Thursday A.M.
MERRY CHRISTMAS TO EACH OF YO
~
.
Ollie Koropchak
Executive Secretary
Monticello Industrial Develop ent Committee
Enclosures
cc: File
Cit'j 0/ monticello
--
T.~:5~' ~..
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
MONTICELL , MN 55362-9245
October 19, 1987
Mr. Patrick Klaers
city Administrator
505 U.P.A. Drive
Elk River, MN 55330
Dear Mr. Klaers:
The Monticello Industrial Develop nt committee is conducting a study
of comparative costs for new indus rial companies. Comparative costs
are being requested from the cities of Buffalo, Big Lake, Elk River,
Litchfield, and st. cloud. The purpose of the study is to verify
whether Monticello remains competitive with its neighbors. The
thought is to request the calcula ed information from the
municipalities; thereby, the stud will be more accurate and
complete.
Based on the following hypothetic 1 assumptions for two individual
industries, please calculate the otal initial building and plumbing
permit fees, water and sewer hook p fees including the meter cost,
and indicate which costs might be negotiable. Also, please calculate
the water and sewer charges for a three month period.
Assumptions: Total 30,000 sq ft oncrete building
28,000 sq ft " s manufacturing
2,000 sq ft s office
30 employ es
computer prod ction company
Average user f water and sewer
usage 5,000 g l./day
Assumptions: Total 100,000 sq ft metal building
90,000 sq ft is manufacturing and warehouse
10,000 sq ft is office
35 emplo ees
Egg process in company
Heavy user of water and sewer
Water usage 1 0,000 gal. /day
Sewer usage 0,000 gal./day
1,000 1bs/day BOD
250 lbs/day TSS
.
Mr. Patrick Klaers
october 19, 1987
Page 2
I hope to report the information
1987, meeting. your participatio
would like a copy of Monticello's
For additional information, conta
(metro). Thank you.
Sincerely,
~ ~~\O~~
Ollie Koropchak
Economic Development Director
OK/kd
cc: File
.
.
o the IDC at their November 18,
is greatly appreciated. If you
calculations, please indicate so.
t me at (612) 295-2711 or 333-5739