IDC Agenda 12-05-2006AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, December 5, 2006 - 7:00 a.m.
Bridge Room -Monticello Community Center
MEMBERS: Chair Pau~mwachter, Vice Chair Mike Benedetto, Mrger, Bpper, Difl~an Allen,
Don Roberts, Dan~"1son, Barb~,,S~tlfwientek, Lynyr~Dahl-Fleming, Dor~mann, Tor~easki, Kelli
Hy~f`ord, Jim Johnson, Zona G~tz~EGiller, and Mic~ei'e Hertwig.
STAFF: Olli~opchak.
COUNCIL LIAISON: Mayor Cl' erbst and Council Member Wayne Mayer.
IDC MISSION STATEMENT: To increase the industrial tax base, to create jobs at liveable wage-
levels, and to maintain a favorable and desirable industrial
environment in the City of Monticello.
R`.o~
7:00 a.m. 1. Call to Order. (Please read the minutes and information prior to the meeting.)
7:01 2. Vote to approve the November 7, 2006 IDC minutes. ~~sv,~`~ G ,~
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7:05 3. Follow-up Business: (Subcommittees give year-end summary)~`''`~~!
A. Discuss recommended Ordinance Amendment fo~ Open and Out oor Stora_~e,, ~ ~5
(Barger) and call for vote if necessary. U+~„6,~' _,,,.?t~~~ ~~~~,~,,,,
• B. Town Hall Concerns & Issues and BRE -Van Allen ~' ~ `- :~"'~,,.
~_ - ~v~~`_~''- ~ '~ C. Marketing Committee - Kleinwachter and Dahl-Fleming '~ a~
~C"' _ ~ D. Reports from and goals of Subcommittees: Industrial Land, and Tra~sp ion.
7:30 4
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7:40,~~~ ~ 5.
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7:50 ~ 6.
7:55 7.
8:10 8.
• 8:17
Mayor s City Update: ~9.~'~,s~''~'. o ~-~D \~`--
A. AVR Closing/Constrµcti n. `C~~'~ G"r~ ~' ~~
B. YMCA property-- ~ ~ ~ Q~ ,
C. Comp Plan Update N- ~' ~~~ • .~' . `~ ~ ~~~y'"
D. Fiber Optics Task Force -Mayer .,~'~
E. Questions/answer period ~~-
Review the draft copy of the December 5, 2006 Planning Commission Agenda for ~° s
industrial related items. Discuss and vote on an IDC position or action if necessary.
New Business: -
~-,'''"~~L,9~
Reports: ~ ~~,~d~ q,,~•
A. Economic Development Report by K xc~o ch,~, •' .,~,.i~ , ~
Other Business. F"^'~ e;~~~
A. Chamber Updates -Chair Hertwig.
B. Next IDC meeting -Tuesday, January 2, 2006 (Annual meeting.)
9. Adjournment:
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• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, November 7, 2006 - 7:00 a.m.
Bridge Room -Monticello Community Center
MEMBERS PRESENT: Chair Paul Kleinwachter, Mary Barger, Bill Tapper, Dick Van Allen, Dan
Olson, Barb Schwientek, Lynne Dahl-Fleming, Tom Feaski, and Zona
Gutzwiller.
MEMBERS ABSENT: Vice Chair Mike Benedetto, Don Roberts, Don Tomann, Kelli Huxford, Jim
Johnson, and Michele Hertwig.
STAFF PRESENT: Ollie Koropchak.
COUNCIL LIAISONS PRESENT: Mayor Clint Herbst and Council Member Wayne Mayer.
IDC MISSION STATEMENT: To increase the industrial tax base, to create jobs at liveable
wage-levels, and to maintain a favorable and desirable
industrial environment in the City of Monticello.
1. Call to Order. (Please read the minutes and information prior to the meeting.)
Chair Kleinwachter called the IDC meeting to order at 7:35 a.m.
2. Vote to approve the October 3, 2006 IDC minutes.
BILL TAPPER MADE A MOTION TO APPROVE THE OCTOBER 3, 2006 IDC MINUTES.
SECONDED BY DAN OLSON AND WITH NO CORRECTIONS OR ADDITIONS, THE
MINUTES WERE APPROVED AS WRITTEN.
3. VIDEO: Cedar Falls Iowa -Economic Impact of Fiber Optics. Followed b~pdate from Fiber
Optic Task Force and discussion. www.monticellofiber.com
A video highlighting the economic impact of fiber optics on the city of Cedar Falls, Iowa, was viewed
by the IDC. Cedar Falls has acity-owned 750-acre industrial and technology park The technology
park was developed in 1996 and between. 1990-2004 the industrial/technology park grew from 27
companies to 147 companies. Currently, the Fiber Optic Task Force is conducting an education and
information campaign which includes scheduled informal meetings and mailings via utility bills and
newsletter. The mailings include a return card of interest to receive fiber. In addition to the telephone
survey conducted within the Feasibility Study and to ensure the comfort level of the Council prior to
• it's next decision to move forward with acity-wide fiber optic system, the Task Force authorized a
IDC Minutes -11/07/06
firm to conduct a telephone survey of interest in receiving phone, Internet and/or cable TV service.
The Task Force recognizes the complexity to disburse accurate fiber optics information and noted
numerous inaccuracies printed by the local media. Tapper who attended one of the information
meetings informed the IDC, once he was able to explain the objectives of fiber optics to his
employees they understood the benefits. It clearly is an educational process. The question remains:
At what point can the IDC or a business write a letter to the editor?
4. Follow-up Business: Chair Kleinwachter suggested subcommittees begin to prepare plans for 2007.
A. Discuss recommended Ordinance Amendment for Open and Outdoor Storage (Barger
call for vote if necessarv. Barger reported a meeting is scheduled for tomorrow at 9:30 a.m.
to review the history of the topic in order to ensure everyone is up-to-date and to focus on a
future strategy.
B. Town Hall Concerns & Issues and BRE -Van Allen reported the subcommittee had not met
in a couple of months. However, the subcommittee's plan remains the same to develop a
data base as a means for industrial leaders to communicate using MN Technology articles and
to share in confidentiality. Van Allen noted the article in the West Sherburne Tribune where a
group interested persons "leadership team" visit existing businesses to encourage community
business retention and expansion (BRE) recognizing the importance of local manufacturing.
C. Marketing Committee - Kleinwachter reported three of the four committee members met and
• compared 2006 budget/line items against expenditures/accomplishments. The group
discussed various journal marketing options to maximize dollars and to reach targeted
businesses. Koropchak to contact local manufacturers for list of trade journals they read.
Council has not approved 2007 budget including the $33,000 requested by the Marketing
Committee..
D. Reports from and goals of Subcommittees: Industrial Land. and Transportation.
Tapper reported the Transportation Committee had not met and inquired as to the status of
the round-about. The round-able is scheduled to open Tuesday/WednesdayprIor to
Thanksgiving. The Highway 25 traffic study will occur after 2006 to ensure settlement of
traffic patterns following the opening of the interchange and round-about.
5. Mayor's City Update:
A. AVR Closing/Construction. AVR/City Agreement executed. Footing permit issued. Land
conveyance from Chadwick to City completed. Yet to be conveyed to AVR.
B. YMCA propertX City/County continue to work out details of the Memorandum of
Understanding. City/County agree in concept and purchase price offer. Offer to soon be
presented to YMCA.
C. Comp Plan Update. Final neighborhood meeting scheduled for November 15, 7:00 p.m. It
is anticipated Task Force meetings will begin sometime in December.
D. Questions/answer period None.
•
2
. IDC Minutes -11/07/06
6. Review the draft copy of the November 6, 2006 Planning Commission Agenda for industrial related
items. Discuss and vote on an IDC position or action if necessar~(Meeting held on Monday
November 6, 2006, due to Election Day)
Asked about the ordinance amendment for PUD's, Mayor Herbst noted the joint meeting between
Council and Planning Commission began discussions to establish a framework for residential PUDs.
This framework would be based on what the city wants to see and would give direction to residential
developers.
7. New Business: None.
8. Reports:
A. Economic Development Report. In addition to the written report, Koropchak reported on a lead
fora 25,000 sq ft retail/warehouse facility, she met with the Tegra Group who specializes in real
estate project management and does some brokerage, and met with Don Tomann, UMC, about
future plans. Tapper noted from his prospective after viewing the Arch Aluminum & Glass Company
web site, the company appeared sound and as a national distributor with it's first and only facility in
MN, he questioned the overall scope or logic of the criteria given a proposed 72,000 sq ft building.
Koropchak noted the combined average wage levels did not meet the $16.00 per hour w/o benefits
i for the discount price of $1.00 per sq ft.; however, the company was offered a site at the market rate
of $3.00 per sq ft plus trunk fees. Lastly, it was pointed out in an email from Brian Walker, his
comment about their potential investment being impacted negatively in a location adjacent to a readi-
mix concrete facility.
9. Other Business.
A. Chamber Updates - No report.
B. Next IDC meeting -Tuesday, December 5, 2006.
10. Adjournment.
A MOTION WAS MADE BY TOM FEASKI TO ADJOURN. WITH NO FURTHER
BUSINESS, DICK VAN ALLEN SECONDED THE MOTION. MEETING OF THE IDC
ADJOURNED AT 8:50 A.M.
Ollie Koropchak, Recorder
•
3
S.
•
.AGENDA
MONTICELLO PLANNING COMMISSION
Tuesday, December 6th, 2006
6:00 PM
Commissioners:
Council Liaison:
Staff:
Rod Dragsten, Charlotte Gabler, Lloyd Hilgart, William Spartz,
and Barry Voight
Glen Posusta
Jeff O'Neill, Angela Schumann, Gary Anderson, Ollie Koropchak,
Kimberly Holien and Steve Grittman - NAC
Call to order.
2. Approval of the minutes of the Planning Commission meetings of November 6th, 2006.
Consideration of adding items to the agenda.
•
4. Citizen comments.
5. Public Hearing -Consideration of a request for Preliminary Plat for the Carver Plat, a
proposed 3-unit single family replat.
Applicant: Thomas Parker
6. Public Hearing -Consideration of a request for extension of an Interim Use Permit for an
existing facility for open and outdoor sales in a B-3 District.
Applicant: Jacob Holdings, Inc.
7. Public Hearing -Consideration of a request for Development Stage Planned Unit
Development for the proposed expansion of the St. Benedict's Senior Community.
Applicant: CentraCare/St. Benedict's Senior Community
8. Public Hearing -Consideration of a request for amendment to the Monticello Zoning
Ordinance Section 3-3 [F] regulating front yard setback averaging.
Applicant: City of Monticello
9. Adjourn.
IDC Agenda -12/05/06
7. Reports
A. Economic Development Report by Koro~chak.
Leads:
* Arch Aluminum & Glass -Attached is the most recent email from Mike Rapp. It appears the
company is concentrating on retrofitting a lease able facility. My understanding is the facility is
in Rogers. Internally, the company has determined it maybe difficult to buy and own due to the
investment size in relation to their size of market share they can obtain.
* 10,000 sq ft building -The company's architect, I believe is working on design elevations for
the designated site, as the architect has called for setback, etc information. At this point, the
company has not given the OK to move forward for HRA's preliminary approval in December.
* 25,000 sq ft retail/office/call center/warehouse -I've requested to visit this company in
Albertville. In an industrial zone, a CUP is required for retail space and limited to 15% of the
floor space. The company meets the $1.00 per sq ft criteria and covenants; however, a clearer
definition of the call center is necessary as an economic TIF District does not allow for
telemarketing which in turns means our offer would be $3.00 plus trunk fees. Graduated from
Monticello High School. (An example where Tax Abatement could be used.)
* Billboard -Received voice-mail requesting more information about $1.00 offer seen on
billboard. Mailed info to Plymouth address 11-14-06, I not heard a response or follow-up.
Left no phone and can't find name in phone book.
. * Local contractor/developer -Inquired about criteria for $1.00 on behalf of their client on
November 28. Reliable source.
* Mpls contractor/builder -Inquired about criteria for $1.00 on behalf of client. November 22.
* Heavy construction firm -See attached email and response. 7-10 acres
* Ecological Restoration Contractor -Initial inquiry August 2006. Follow-up November 27.
Request low-key. According to planner consultant, the required zoning is I-2. Outdoor
storage required. Left message November 29 -list of private owners of I-21and.
Approximately 3 acres.
Under construction:
* Karlsburger Foods -The floors are poured and the windows installed so internal work will
continue over the winter. Completion expected by March. The curb and hard surface is in and
they planted some of the trees. I talked with Mike and noted the number of evergreens along
the ponding area. Looks great, he said their contractor went over and beyond.
* AVR -The land was conveyed from the city to AVR on November 10. Building permit
issued and construction underway.
*Otter Creek Crossing 3rd Addition -The plat was recorded prior to conveyance and the
utilities are in along Dalton Avenue to southerly property line, Dalton Court, and about 400 ft of
Dalton Way. Curb and hard surface (1St layer) completed along Dalton Court. General
grading and seeding of the entire remaining available 64 acres less roadway will soon be
•
1
•
IDC Agenda -12/05/06
completed. The improvemen,~s and graded area is great for marketing. Like the gentlemen
from Arch said "Your job is~ery easy, if you don't have a finished product to market." Drive
by and see the improvements, it no longer looks like a gravel or mined pit.
* Completed
* Precision Technologies - I'm working with Jim Harwood for a date to tour their new facility
along Dundas Road. They completed their relocation from Dayton about a month ago.
* Washburn Computer Group -Permit for retrofit issued. Company plans to start moving first
part of December.
HRA-
*Transformation Home Loan Application for 501 West Broadway approved by HRA, did not
meet the MN Statutes definition of "substandard" per the inspection by the Chief Building
Official on November 9"'. The applicant was informed that the HRA was unable to assist.
* Transformation Home Loan for 511 Elm Street. On November 17, the building inspection
made a final inspection and about five items remain incomplete. I explained to the owner that
I'll authorize the title company to disburse the remaining $6,000 of the approved $20,000 loan
upon completion of the items. As of November 29, per the building inspector the items remain
incomplete. The HRA has a recorded mortgage.
* Fiber Optics Task Force -The task force continues in a positive direction, looking forward to
Council direction on December 11. The telephone survey presented positive numbers of
interest and yesterday, we were enlightened with a presentation on a new technology for
installation of fiber in trunk lines.
* Cedar Falls, Iowa - I called my counter-part in Iowa after going to their web site and seeing
their video. I received a list of the businesses including building size and number of jobs
attracted by Cedar Falls. I have a map of their 750-acre city-owned industrial and technology
park and inquired as to their incentives offered in addition to the availability of fiber optics.
Their council just approved acquisition of another 200 acres. I've also obtained a map of the
Brooklyn Park business park. This is useful information as the city (assuming) moves forward
with fiber optics and the need to identify an area for digital technology businesses. Many times
technology businesses are service in nature (smaller in building size and higher in wages) and do
not fit the MN Statutes for establishment economic TIF District: manufacturing, warehouse or
distribution. * Rep. Bruce Anderson - At a presentation of State of the Cities for southerly and
westerly Wright County cities, I asked Rep. Anderson if he was aware of how the application
for Bioscience Zone designation by DEED was marketed. He, too, was unaware that it
expanded beyond Mpls/St. Paul, and Rochester. He said he'd check and get back to me.
According to the article 42 cities applied.
* Comprehensive Plan Update -The last neighborhood meeting was held on November 15 and
was well attended. One of the two focuses was industrial development. I'm looking forward
to reading the industrial summary of comments as prepared by Hoisington. The verbal
comments made supported the current goals of the HRA criteria: Job creation with higher
2
•
IDC Agenda -12/05/06
paying wages and greater value of building density to land. Hoisington is preparing a letter for
task force members and I believe they plan to begin meeting in mid-December.
* Marketing Committee -They are meeting December 1. Report at IDC meeting. The
Monticello Business Center concept map photo in now on the MNPRO site listing. The
concept map and manufacturer's directory was also updated on our web site:
www.monticelloland. com
* HRA will be requested to decertify two TIF Districts at their December meeting and they
continue negotiations on two downtown properties. They will review a spreadsheet for Otter
Creek Crossing comparing original estimated land and improvement costs, current land
acquisition and improvement expenditures, and revenues on land sales and projected TIF
revenues. Lastly, the HRA will need to review the discount price of $1.00 as our expenditures
will be increasing with the proposed increase in trunk fees. The $1.00 price includes no
assessment and no trunk fees.
* EDA GMEF Loan No. 023 - I need to follow-up with the title company again to see if the
EDA mortgage has been recorded. The EDA approved a machinery & equipment loan for
Karlsburger. We have not closed on the loan nor disbursed the dollars as waiting for serial
numbers for the M&E.
* For your information -Angela Schumann and her husband are proud parents of a baby girl,
Tara, born November 29, weighing in at 8 pounds, 9 ounces. Angela was here unti12:30 and
• delivered at 5:00 p.m. Congratulations to the family. All is doing well. Angela returns to work
February 28.
~o~ ~~~~
~~
~~
•
Page 1 of 1
Ollie Koropchak
From: Mike Rapp [mrapp@archaluminum.net]
Sent: Wednesday, November 22, 2006 11:22 AM
To: Ollie Koropchak
Subject: RE: Greetings from Monticello
Sorry, for not getting back to you sooner. I've been in Wisconsin most of the last 3 weeks trying to get our new
plant up and running, but should have replied sooner. At this point, we are concentrating on an existing building
to lease in Rogers. If we can work out a lease arrangement with them, we will probably go that direction, but at
this time nothing has been finalized. We have determined internally that it may be difficult for us to buy and own
due to the investment size in relation to the size of market share we can obtain. I appreciate you staying in
contact and I will keep in touch with you if things change. Thank you and have a great Thanksgiving.
Thanks,
Mike Rapp
Arch Aluminum & Glass Co., Inc
mrapp~a archaluminum.net
888-491-4290
From: Ollie Koropchak [mailto:Ollie.Koropchak@ci.monticello.mn.us]
Sent: Tuesday, November 21, 2006 2:24 PM
To: mrapp@archaluminum.net
Subject: Greetings from Monticello
Mike -Just to let you know, I just came back from your targeted site here in Monticello. The utilities and Dalton
Court road is in. The site looks a lot different now that it is level and the berm along the power line easement to
the west will be completed by the end of next week. You'd be proud to have your business facility located there.
When are you planning to visit MN again? The proposed property taxes for Monticello did decease for 2007. I
received my proposed home property taxes which included an increase in market value and my proposed taxes
went down $120. Looking forward to hearing from you and a blessed Thanksgiving to you and your family. Ollie
•
11/22/2006
Page 1 of 2
•
Ollie Koropchak
From:
Sent: Tuesday, November 28, 2006 1:47 PM
To: Ollie Koropchak
Subject: RE: Industrial Land
Thank You for the return of my e-mail.
We are very interested in working with your community.
Jim Rentz
-----Original Message-----
From: Ollie Koropchak [mailto:Ollie.Koropchak@ci.monticello.mn.us]
Sent: Tuesday, November 28, 2006 12:14 PM
To: Jim Rentz
Cc: Steve Grittman; Jeff O'Neill
Subject: RE: Industrial Land
•
Mr. Jim Rentz -Thank you for your email of November 27. I'm forwarding your email to the city planner
consultant, Steve Grittman, Northwest Associated Consultants, to identify the correct zoning, I-1, I-1A, or
I-2, for Nodland Construction Company The billboard along I-94 markets the city-owned business center
land (I-1A zone) fora $1.00 per sq ft to qualified businesses or is offered for $3.00 per sq. ft plus trunk
fees to non-qualified businesses. The $1 per sq ft criteria is based on number of full-time jobs per acre,
wage-levels, market value of proposed building, and a 25% building size ratio per one acre. However,
the city-owned business center has recorded covenants which do not allow for outdoor storage of
materials and equipment. For other industrial zoned land within the City of Monticello, a conditional use
permit for outdoor storage is required. Once, the city consultant responses to the correct zoning, I'd be
happy to provide you with contact names for the appropriate land use. Please call me at anytime, 763-
271-3208. Ollie Koropchak, Economic Development Director.
From:
Sent: Monday, November 27, 2006 11:13 AM
To: Ollie.koropchak@monticelloland.com
Subject: Industrial Land
Mr. Ollie Koropchak:
My name is Jim Rentz, I am the Vice President /General Manager of the Nodland Construction
Company.
•
Our firm has been in operation since the late 1930's, we have office locations in Alexandria and Saint
Michael Minnesota.
We are a heavy construction firm specializing in utility, sewer, water and road construction activities. We
work primarily in Minnesota but have working in other states.
We employ approximately 80 union construction professionals, with an annual payroll of over $ 3 million
dollars, and our yearly sales revenue in excess of
30 million dollars.
We are looking for a central location to consolidate our Field Construction, Equipment Maintenance, and
Office Operations.
11 /28/2006
Page 2 of 2
I am looking for a location that is from 7 to 10 Acres in size, I could get 6y with less but not less than 5
acres, that would be industrial in nature and would allow the out side storage of heavy construction
equipment, and some inventory of construction materials.
I noticed your billboard while in the twin cities. I have long been interested in the Monticello area but I
have been repeatedly told that our type of business was not welcomed in the Monticello Area. I am
hoping this is not true, that is why I decided to act.
You will find that the Nodland Construction Co. is a good community partner, and would be a good
business for the city of Monticello.
I look forward to your response.
Sincerely
C
11 /28/2006
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