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IDC Agenda 04-18-2002AGENDA • MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, April 18, 2002 - 7:00 a.m. 505 Walnut Street -Academy Room MEMBERS: Chair Dick Van Allen, Vice Chair Mary Barger, Kevin Doty, Tom Lindquist, Bill Tapper, Tom Ollig, Don Roberts, Mike Benedetto, Susie Wojchouski, Barb Schwientek, and Dan Olson. COUNCIL: Mayor Roger Belsaas. STAFF: Rick Wolfsteller, Jeff O'Neill, John Simola, Fred Patch, and Ollie Koropchak. IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to create jobs in the City of Monticello, Minnesota. 7:00 a.m. I . Call to Order. (Please read the minutes and information prior to the meeting.) 7:02 2. Vote to approve the March 21, 2002 IDC minutes. 7:04 3. Updates by O"Neill. b) Public Hearing Date for amending Comp Plan, May 7, 7:00 p.m. c) Gold Nugget parcel. d) Otter Creek Crossing annexation. 7:14 4. Feedback from the Planning Commission Open House and IDC presentation -Van Allen. 7:34 5. Reports: BRE Visit - Polycast Specialities, April 26, 9:30 a.m Economic Development Report -Koropchak. Mayor -Belsaas. Follow-up with Dr. Nemec -Tapper Industrial Banquet Date -Wojchouski. 8:00 6. Discuss changing the IDC focus to economic development (both industrial and commercial.) 8:20 7. Other Business. 8:25 8. Adjournment. MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, March 21, 2002 - 7:00 a.m. SOS Walnut Street -Academy Room MEMBERS PRESENT: Chair Dick Van Allen, Kevin Doty. Bill Tapper, Mike Benedetto, Susie Wojchouski, and Dan Olson. MEMBERS ABSENT: Vice Chair Mary Barger, Tom Lindquist, Tom Ollig, Don Roberts, and Barb Schwientek. COUNCIL LIAISON ABSENT: Mayor Roger Belsaas. STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak. GUEST: Darrin Lahr, Xcel Energy. IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to create jobs in the City of Monticello, Minnesota. Call to Order. (Please read the minutes and information prior to the meeting.) Chair Van Allen called the IDC meeting to order at 7:00 a.m. 2. Vote to approve the February ~ I ~00~ IDC minutes. Bill Tapper made a motion to approve the February 21, 2002 IDC minutes. Kevin Doty seconded the motion and with no corrections or additions. the minutes were approved as written. Updates by Wolfsteller. a) Open House/Workshop Date for amendin ~ Comp Plan is scheduled for Wednesday, April 17, 4-7 p.m. It was suggested the IDC make its presentation at both the open house and public hearing. The open house intended for discussion and the public hearing for comments which are entered into Planning Commission minutes. b) Public Hearing Date for amendin~Com_p Plan is scheduled for Tuesday, May 7, 7:00 p.m. c) Next mediation date for Gold Nugget parcel. Wolfsteller reported they were getting close to settlement through the court system. Then the township requested the court system declare if an MOAA exist. This request was combined with the Gold Nugget settlement which may slow down the process and final settlement. The MOAA's insurance covers the court system costs. On March 11, the Council authorized an appraisal of the 70 acres. Koropchak stated given the uncertainty of a settlement, land prices, and the small pockets of proposed industrial land uses, perhaps the focus for future industrial development is better served by considering the acquisition of the Orchard Road property and to retain a consultant to lobby for the I-94 interchange. IDC Minutes - 3/21/02 d) Otter Creek PUD Approval -The Planning Commission approved the Otter Creek Business Park concept PUD based on the concept is consistent with the Comprehensive Land Use Plan. Some highway like business uses were removed. 4. Followup on concern raised by some industries as to increased power outages in Oakwood Industrial Park by Darrin Lahr. Darrin Lahr began by informing members that at one time the Lynn Street substation served the City of Monticello. With the growth of the city became the need for more capacity. Creation of new substations is becoming a thing of the past as people see substations as anon-appealing neighbor. Excel Energy has two types of systems: a 12-5 system (substation) and 35,000 KB Volt system (bulk power). Using a map, Lahr continued stating with the growth of Monticello, the city is now being served from the south by the bulk power system located at Lake Polaski. The feeder line runs north to 85 Avenue and breaks into three fork-like legs. One leg running up Fallon Avenue to Chelsea Road and the other two running up Highway 25 and Fenning Avenue. With added miles of feeder lines comes more exposure, mostly from lightning. Another system woL-ld not be installed in Monticello, unless a big user would locate in Monticello. With the growrth in the St. Micheal area, the Hassan system will tie into the Lake Polaski system and Monticello via County Road 18 serving as a backup system. However, this has not yet been completed. The Thomas Park Addition, a portion of Chelsea Road between Oakwood Drive to Aroplax, and Dundas Road are served by the Lynn Street substation. So in some cases, perhaps Rainbow"s power was out and Remmele's was on. Lahr then presented the OIP outage history between 2000 and 2001 stating 1996 and 2000 was not available. It appears that most outages result from lightning, animal contact, and pole fires. Asked: what about the momentary outages which cause loss of production time. Because of the length of feeder lines perhaps a storm hits Lake Polaski and not Monticello or occurred during construction. A local business can co-ZSider a battery back-up system. The question becomes ``What is the power worth?" In conclusion. Lahr volunteered to talk with Rainbow and suggested any other questions be referred to him. IDC members thanked Lahr for the informative information. 5. Review IDC questions for Planning Commission. IDC members reviewed the questions for the Planning Commission and agreed the questions were written as intended. Members agreed to present the questions to the City Planner, City Planner Consultant, and Planning Commission prior to the workshop/open house. Koropchak informed members of her visit with three members of the marketing team from C B Richard Ellis, the firm marketing Otter Creek. It appears the owner prefers not to develop the 141 acres and asked for suggestion of interested local parties to purchase the property. $5.8 million for the 141 acres or $.95 per sq. ft. Discuss elements of presentation lobbyin~ the Planning Commission Several questions were directed to Administrator Wolfsteller. Who is responsible for the overall planning of the City of Monticello? Does the City have goals for job and tax base creation? What is the plan to meet those goals: tasks and time frame? How does the City plan to replace the loss tax revenue from the Monticello Nuclear Generating IDC Minutes - 3/21/02 Plant? Who is the representative from the city for transportation issues such as ensuring future I-94 interchanges both at County Road 18 and Orchard Road? Discuss chan~in~ the IDC focus to economic development (both industrial and commercial.) With only a couple of members still in attendance, there was no discussion relative to changing the focus of the IDC. Chair Van Allen did ask "Is the mission statement of the IDC measurable and are we measuring it?" 6. Reports: BRE Visit Followup. No report given. Economic Development Report No action was taken on the written report. Koropchak informed members of a meeting held between Weinand, Pfeffer, O'Neill, City Planner Consultant, City Engineer Consultant, and Koropchak. The purpose of the meeting was to discuss future proposed projects such as the I-94 & CTY Road 18 Interchange and the need to obtain easements or property to complete that project, others, and the I-94 bike/pathway bridge connection. Interchange access options were discussed stating it's MDOT plan to complete the interchange by 2005 prior to commencing construction to realign I-94 in 2006. During the meeting, the question arose as to the City's intent to purchase land for industrial development. Staff responding to the question, the developer was not happy with the idea of competition. Manor No report. Followup from Dr. Nemec relative to providing the service of dru tg esting. Neither Van Allen or Tapper had heard back from Dr. Nemec after their conversation relative to providing the service of drug testing for new employees of the local businesses. Wolfsteller reported that the City now uses Alliance Clinic associated with the Buffalo Hospital It was recommended that Bill Tapper contact Dr. Nemec. Chamber decision on Industrial Banquet. -Chamber Director Wojchouski reported that Norm Coleman can speak as long as no campaigning is done. The Chamber is looking at a June date for the banquet. The regular meeting of the Chamber is today 1 I :50 a.m. at the Vintage Grill. The speaker is from the MN Retailers Association and will address current issue at the Legislation. 7. Other Business. Koropchak requested input as to whether the Marketing Subcommittee wanted to host a bus tour and lunch for developers, builders, contractors, brokers in connection with the Chamber Golf Outing scheduled for Thursday, May 17, Silver Springs. Members suggested a presentation prior to the 11:30 a.m. golf outing. They agreed ;ack of change within the community did not warrant a bus tour but felt it was importance to get the developers/huilders out here. The golf outing is gratis to those invited. 8. Adjournment. The IDC meeting adjourned due to a lack of quorum. 9:-9~~. ~Ji- Ollie Koropchak, Recorder The Industrial Development Committee urges the City of Monticello and the Planning Commission to take a 20-40 year look at Commercial /Industrial development. 14 April, 2002 A) TRENDS 1- Continually increasing City budget, tax rate, rate of inflation (Slide) 2- Reduction in Income from Xcel Energy Utility tax (71 now reduced to 53% of City budget) Lost tax capacity needs fo be replaced to reduce dramatic and continual increases to the general tax rate. 3- Government Shifting of tax to localities, residential, commercial and rail, ~ Z `^ ~- ,~~o, cQ.~.i..a- vr•*••~7 4- City Administration continues to lack Commercial /Industrial ~ ~ , development to aid in distribution of the tax burden. B) MEASURE CITYADM/NISTRAT/VE SUCCESS in terms of annual business accomplishments, local jobs, payroll and tax base. Success is not measured by lndust6rial Land designation but by: • Businesses Retained • Businesses Lost ^ • Businesses that who have or are building C) COMMERCIAL /INDUSTRIAL SUCCESS -successfully run local success have been city owned industrial parks. • Rockford -City Owned • Buffalo -City Owned • Big Lake Big Lake Record of Industrial Development retyped 14 April 02 as reported 15 November 2001 Performance Measure - Ci of Bi Lake Goals Established at the Outset of the Park Current Status of Goals Land Size 72 acres Develo able land 50 acres Infrastructure Phase / Roads, Sewer and water Installed 1999 service to 3 lots /15 acres Cost to Develo $ 800,000 estimated 13 lots Ex ected Private sector Investment $11 to 13 million RESULTS RESULTS Jobs er Acre 5 Acres 4.2 "obs /acre Land to Buildin Ratio 4:1 s ft 4.6 s . ft. Developed Land Assessed Value $250,000 /acre $320,435 /acre O en Stora a Not A//owed None Years to a back incentives 5 to 6 Not determined v Planning Commission Agenda - 1/8/02 Update -IDC and HRA Recommendations No action is required of the Planning Corrimission at their January 8, 2002 meeting. The IDC and HF~1 submit and reduest the Planning Commission and City Cutmcil consider and incorporate their respective recommendations into the Comprehensive Plan update and amendment process and to take the applicable action to accomplish the recommendations. Reference and Background: On December 7, 2001, the Marketing Subcommittee (HRA Commissioners Darrin Lahr and Brad Barger and IDC Members Dick Van-Allen, Tom Ollig, and Don Smith) reviewed data including current local industrial landprices ($65,340 per acre), the decrease of taY increment revenues collected due to class rate reductions, and the Big Lake Industrial Development Plan. The group recognized the availability of three local industrial buildings and the current recession; however, they also could not justify spending $20,000 for marketing non-competitive industrial land prices. They agreed Monticello is out-of-the ball game. Additionally, the group considered the $~6~,000 Industrial Development Fund set aside by the HRA and the Council for industrial land acquisition and/or infrastructure developi~lent and the additional pool of non-restrictive TIF funds pledged for industrial land acquisition or infrastructure development. The Marketing Subcommittee made a motion ``asking the HRA and the IDC to approve the Marketing Subcommittee's recommendation to rezone City (Remmele) parcel from commercial to industrial and to develop an industrial park forwarding the recommendation to the Planning Commission." At the IDC meeting of December 20, 2001, Jeff O'Neill gave an update to the IDC members on the status of the Comprehensive Plan amendment. He gave a detailed summary of the preliminary land use plan and noted reasons why the City (Remmele) site has been identified as an important parcel for future commercial development and noted that the mediation session for the Gold Nugget parcel was scheduled for .Ianuary 10, 2002. Additionally, he noted city acquisition of the industriaUcommercial portion of the Gold Nugget site, either by purchase or via swap (City/Remmele), remains a possibility. IDC Chair Van Allen informed members of his recent conversation with UMC, an industrial prospect, relative to the relocation considerations and economic benefits to a community. After discussing the Marketing Subcommittee's recommendation and hearing O'Neill's report, the IDC was ready to make a motion which included preparation of a time fi°ame. IDC Recommendation IDC ~~lemhei• 6cn~•h Schwientek ~ncrcle cr motion recomnu~nclin; IGte control ~~f ~u site for • Planning Commission Agenda - 1/8/02 industr'iul c%vcl~~/~~ne~t aid to conz~nit to constriaclion com~lelion of~rrtiliry and i°nad irrlprovc~n~rents by Full of2002,for either the City (Rernmele) or• Gold Nar;get pay'cels~, and to [~r'e/pure a time fi-ume for the City (Rern~nele) c~nd Gold NLrggc~t parcels, beginning with tl7e infrus'trzrctrrre improvement completion date crud working backwards identifying the uppliccrble steps and tune,fycmu' to accomplish control of~site and infy~crstrzr,chu°e completion. This recommendation to be forwarded to the Planning Commission and City C'orrncil. IDC Member Bill Tapper seconded the motion and with no further discussion, the motion passed unanimously. " At the PIRA meeting of January 2, ?002, O'Neill gave an update to the Commissioners on the status of the Comprehensive Plan amendment and stated he agreed that City ownership of industrial land is critical to getting industrial development going, but thought that use of the City (Remmele) site should be considered after other viable options are exhausted. Alter discussing the Marketing Subcommittee's recommendation and hearing O'Neill's report, the following motion was made. HRA Recommendation ",4 motion runs ralade by Commissioner Brad Barger to recommend to the Planning Commission and the City Council to hove a completed inchrstricrl park owned by the HR4 or City rvilh lots ready to sell in April gf'2003. Commissioner Dcrrr•in Lahr seconded the motion cmd with no fzrrther° discussion, lire ~~wtion carried unanimously. " Again, the IDC and HRA request the Planning Commission and City Council consider and incorporate their respective recommendations into the Comprehensive Land Use Plan update and Amendment and to take the applicable action to accomplish the recommendations. Supporting Data - Copy of Big Lake Industrial Development flan and copy of Van Allen's discussion with UMC. r~ u Percent of building coverage on lots 50% 21.40 Trans ortation Pro'ects? None None Return on Investment A rox 17% Not determined Big Lake has reported they would not re eat a 'oint venture Special Note ! Note Big Lake Background Data: • Joint 50 - 50 ownership City and Township • Shared development and operating costs • Shared benefits • Phased development -Land purchase 1996 • Bonds sold, TIF district used • Marketing, consultants at first then networking, package incentives including $1 land. • Results as above. • Talk of expanding, development of another park. Suggested Actions: City of Monticello to measure its overall development success in terms of: • Actual development results in fhe categories of Residential, Commercial and Industrial. Commercial and Industrial development to follow the "Big Lake Pattern" of goals. • Designate 200 Acres for industrial Development • Avoid the reclassification of land zoned Industrial through the use of PUD designations • Rezone the "70 acre Remelle Property" as Industrial. • Buy reasonably priced nearby land outside the city for long-term. development -this could also be seen as an investment. • QUESTIONS DEVELOPED BY THE IDC FOR THE PLANNING COMMISSION (COMPREHENSIVE PLAN AMENDMENT) 1. LOOKING AT MONTICELLO AS THE HUB, WHY DOES THE PLANNING COMMISSION NOT LOOK TO ANNEX PROPERTY ACROSS THE MISSISSIPPI RIVER? 2. WITH THE INCREASED INTEREST TO DEVELOP COMMERCIAL TYPE BUSINESSES ALONG THE FREEWAY, WHERE IS THE PLANNING COMMISSION'S FOCUS FOR INDUSTRIAL? 3. ASSUMING NO PROGRESS HAS BEEN MADE TO ACQUIRE THE GOLD NUGGET PROPERTY BY FALL 2002, WILL THF. PLANNING COMMISSION CONSIDER ZONING THE CITY/REMMELE PROPERTY INDUSTRIAL? IF NOT, T1~EN WHERE? 4. WITHIN TIIE MARKETING PIECE OF THE CHADWICK PARCEL, IT STATES "FLEXIBLE ZONING ALLOWS FOR COMMERCIAL, INDUSTRIAL, ANll RESIDENTIAL USES". DOES THE PLANNING COMMISSION SUPPORT THIS MIX • OF USES? 5. DOES THE PLANNING COMMISSION SUGGEST THE CITY AGAIN APPROACH CHADWICK FOR THE PURPOSE TO ACQUIRE THE LAND FOR INDUSTRIAL DEVELOPMENT? • • a~ T .--~ U CB Q I ~ ~ i ~ U T~'~ ~ X m F- J II ' T T X ' •= :t' C6 U U H D ® ^' N O O N ' J N J X ca H Q cv U x cC H m N .~ Q U O 0 ............. N 0 - - _ _ N f c4 i O rn rn 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 00 (p ~ N O N ~ ~ ~ [- SJ@~~OQ 0 0 0 0 0 0 0 __ 0 - ''~ 0 0 0 0 0 0 0 0 0 0 0 d' N 0 0 0 0 0 0 rn rn