IDC Agenda 03-15-2001-
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MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
CALENDAR 2001.
Thursday, January 18 -IDC Annual Meeting 7:00 a.m. City Hall Academy Room
Friday, February 2 - HRA/IDC Marketing Committee 7:45a.m. City Hall Academy Room
Thursday, February I S -IDC 7:00 a.m. Sunny Fresh Foods
Thursday, March 15 -IDC 7:00 a.m.
Thursday, April 19 -IDC 7:00 a.m. '~ to ,1„ C.,.~,. b: e L' ~-x1
~~fiy
April -Chamber Industrial Breakfast,. ' ~~w` ~ ~.Q 'Y~ o o ~,
May - pie
Thursday, May 17 -IDC 7:00 a.m.
Thursday, ,Tune 21 -IDC 7:00 a.m. FayMar
Thursday, July 19 -IDC 7:00 a.m.
Thursday, August 16 IDC 7:00 a.m. Right Choice Services, Inc.
Thursday, September 20 IDC 7:00 a.m.
September Chamber Industrial Banquet ~~~-w~ ~ '~ ~ 6~-~
Thursday, October 18 IDC 7:00 a.m. Aroplax Corporation
Thursday, November 15 IDC 7:00 a.m.
d ~~ ~~~
Thursday, December 20 IDC 7:00 a.m. Standard Iron
AGENDA
• MONT[CELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March I5, 2001 - 7:00 a.m.
City Hall - 505 Walnut Street -Academy Room
MEME3ERS: Chair Tom Ollig, Vice Chair Kevin Doty. Don Smith, Tom Lindquist, E3ill Tapper, Dick
Van Allen, Don Robe-~ts, Mike Benedetto, Mary Barger, and Susie Wojchouski.
COUNCIL: Mayor Roger Belsaas and Council Members Clint Herbst, Bruce Thiclen, Roger Carlson,
and Brian Stumpf.
STAFF: Rick Wolfsteller, Jeff O"Neill and Ollie Koropchak.
GUESTS: Darrin Lahr and Brad Barger, I IRA
Rich Carlson, Planning Commission
Call to Order.
2. Consideration to approve the February 15, 2001 IDC minutes.
"HOW TO IMPLEMENT MOVING FORWARD WITH THE ADOPTED 1999 RESOLUTION?"
Res~ohNion ~o uc~ively pursue the acquisition of the C'6~ach-~rck/Goemun prnperlies
for inc~a~sh-iul clerc lo~~menl and uullxn°i_e city s!c ff to begin prepurulion
7:05 a.m.
A. WHY IS THE "ACQUISITION OF LAND FOR INDUSTRIAL USE"
IMPORTANT TO THE CITY OF MONTICELLO?
1. Re-state reasons listed in resolution with illustrations. Koropchak
II. Economic impact (taxes/jobs versus required services) Van Allen
III. Marketing Committee Update -Smith and Lahr
7:25 a.m.
B. WHERE IS THE BEST LOCATION FOR "ACQUISITION OF LAND FOR
INDUSTRIAL USE"?
I. Review site options and rate site options. O'Neill and Koropchak
7:50 a.m.
C. HOW CAN WE MOVE THE "ACQUISITION OF LAND FOR INDUSTRIAL
USE" FORWARD AND IS THERE DESIKE TO MOVE FORWARD?
I. Views of Mayor, Council, and Planning.
11. Recommend development of Action Plan. Ollig and Lahr
8:15 a.m.
D. WHEN IS THE "ACQUISITION OF LAND FOR INDUSTRIAL USE" TO BF,
ACCOMPLISHED (CLOSING DATE)?
1. Recommend date to accomplish.
3. Other Business.
4. Adjournment.
C
r~
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 99-4
Resolution recommending the City Council actively pursue the acquisition of the
Goeman/Chadwick properties for industrial development
and authorize city staff to begin preparation thereof.
WHEREAS, the Monticello Housing and Redevelopment Authority ("Authority")
endorses the City of Monticello Comprehensive Plan and the Community Vision and Governing
Policies; and
WHEREAS, the Authority endorses the economic development efl^orts of the City of
Monticello through the administration of the Central Monticello Redevelopment Project No. 1
Plan and the Marketing Plan; and
WHEREAS, the Authority previously committed a total of $150,000 toward the
acquisition or development of industrial land; and
WHEREAS, the Authority previously requested the City Council match the Authority's
$150,000 for acquisition or development of industrial land; and
WHEREAS, the City Council previously committed a total of $150,000 toward the
acquisition or development of industrial land; and
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Monticello Housing and Redevelopment Authority as follows:
Acquisition of said properties will control land prices.
2. Acquisition of said properties will control and simplify development schedules.
3. Acquisition of said properties will diversify ownership of industrial lands.
4. Acquisition of said properties will provide for a competitive market.
Acquisition of said properties will allow for flexibility in deal structuring.
6. Preparation for acquisition of said properties places the City of Monticello first in-
line to acquire.
HRA Resolution No. 99-4
Page 2
Adopted by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this 9th day of June , 1999.
HRA Chair
ATTEST:
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Executive Director
•
C,
WHY IS THE "ACQUISITION OF LAND FOR INDUSTRIAL USE"
IMPORTANT TO THE CITY OF MONTICELLO?
ACQUISITION OF SAID PROPERTIES WILL:
1. CONTROL LAND PRICES.
2. CONTROL AND SIMPLIFY DEVELOPMENT SCHEDULES.
3. DIVERSIFY OWNERSHIP OF INDUSTRIAL LANDS.
4. PROVIDE FOR A COMPETITIVE MARKET.
5. ALLOW FOR FLEXIBILITY IN DEAL STRUCTURING.
CONTROL LAND PRICES
IMPROVED
1987 OAKWOOD INDUSTRIAL PARK $10,400 PER/ACRE
1996 OIP SECOND ADDITION $23,800 PER/ACRE
1998 MONTI COMMERCE CENTER $3,000 PER/ACRE
2001 MONTI COMMERCE CENTER $43,560 PER/ACRE
CHADWICK/GOEMAN PROPERTY
UNIMPROVED
1999 APPRAISALS
180 ACRES RANGE $3,222 - $3,416 PER ACRE
180 ACRES RANGE $4,500 - $5,000 PER ACRE
JANUARY 2000 NEGOTIATIONS
180 ACRES $8,128 PER ACRE
• CONTROL AND SIMPLIFIES DEVELOPMENT SCHEDULES.
SIMPLIFIES -ONE-STOP SHOP
a. From Marketing to
b. Platting/development to
c. Deal structure to
d. Land Closing.
CONTROLS AND CONSISTENCY
a. Accurate estimate of trunk fees
b. Eliminates inconsistency of pond development or issues.
c. Eliminates confusing issues relative to water/sewer stubs and
hydrants.
d. Eliminates surprises on land prices and non-marketable
property.
e. Consistency creates a positive image of community.
• PROVIDE FOR A COMPETITIVE MARKET
"THE DARRIN LAHR SHOW"
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ALLOW FOR FLEXIBILITY IN DEAL STRUCTURING
BUFFALO
LAND COSTS $3,800 P/A
BIG LAKE
$3,800 P/A
MONTICELLO
$43,560 P/A
COMPETITION
LAND LOT FOR $I
UPFRONT
Lot - 4 times bldg size
plus setbacks
EXAMPLE:
30,000 sq ft 2.75 acre for $1
MARKETABLE -SIMPLE
SITE
IMPROVE FORGAVE (BL)
INFRASTRUCTURE
NO ASSESSMENTS
STORM ON UTILITY BILL
SEWER
FEE
MONTICELLO
LAND WRITE-
DOWN
REIMBURSEMENT
$108,900
REIMBURSEMENT
LGA -REDUCTION
TRUNK
$8,900 P/A
JOB CREATION
SECONDARY
_ NO JOB REPORTING TO STATE
HOWEVER JOB REQUIREMENT
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DEVELOPER'S PROSPECTIVE
DIFFERENCE BETWEEN
AVAILABLE INDUSTRIAL LAND FOR DEVELOPMENT
COMPARED TO
•
CITY OWNED LAND FOR DEVELOPMENT
•
TIF
UTILITY
COMPANY
USED TO REIMBURSE
CITY COST FOR DEVEL
OPMENT
LAND WRITE-DOWN
SITE IMPROVMENTS
OWNS -HIGH USERS PAY FOR INVESTMENT
NO USE OF TIF, NO REPORTING AND NO LGA PENALY
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•
• The IDC Marketing Committee arrived at the following conclusions:
1- IDC has nothing to market
A) Pfieffer @ 43,500 away from the interstate and $110,000 per acre, along the interstate
This sales group has produced few industrial development sales in the last four years
except for the Die Cast plant. Reported discussions between prospective clients and the
salesman do not seem oriented to closing a sale.
8) Goeman Chadwicks property exchange is now 2 years in negotiation and the continued
delay continues to net increased prices
C) If you don't have a long range plan agreement with the MOAA you have a long process
Chadwicks Goeman and Golden Nugget for Industrial
•
Rhetoric
• We do not demonstrate a real drive for industrial development
• We've been OK for 20 years
• In the last 3 years we've only needed 5 acres per year-(This is not development it is failure.)
• Addition of houses under $150K are a net cost to the city instead of a net tax revenue since they
do not pay taxes equal to the cost of services provided by the city.
• We are a bedroom community that supports the homes of those that live in Monticello and
spend their money while commuting out of Monticello.
• Roof tops will net commercial development
• Local Industrial /commercial development net payroll and Monticello spending leveraging
income into more jobs.
History -data taken from Ollie K. spread sheet concerninq- T/F use.
1992-1999 16 Industries 555 Jobs
16 Industries E -Paid 528,000 Taxes in 2000
13 Industries Wa es $13,982,727
Communi effect At least 3 times wa es
The accompanying chart is taken from un-audited data obtained at the Wright County Assessors
office for the taxing district that includes Monticello, Mn.
That data clearly shows the following tax capacity results:
• Residential- Increased
• All other Commercial /Industrial -Static
• Public Utility -Decreased
Oainion:
• Over the next 10 years NSP property taxes will be decreased by 20 % because of pressure on
energy costs.
• There is no reason to believe that the Stafe of Minnesota will be inclined or able to reimburse
municipalities for lost tax capacity revenue in the future.
• Increased industrial development is a necessary part of developing a balanced tax capacity for
Monticellos' future tax revenue needs.
• The City of Monticello needs to go forward in a manner that nets available industrial land,
providing an atmosphere of competition between suppliers and that produces results.
• Actively market the Remelle and other available city properties.
Respectfully submitted by Dick Van Allen 15 March 2001
•
2000Montitaxbasel nfo
15 March 2001 Dick Van Allen
t 1 Value of property taxable by the "Taxing District" as assessed in 1998 for the purpose of computing the rates of taxes
:olleeted in 1999 and additions thereto and deductions therefrom which are permitted or required for debt and tax limit
purposes, are recorded as follows: 2000 1999
Taxable 2000 Taxable 1999
Market Value Tax Capacity Market Value Tax Capacity
Real Estate:
Residential Homestead (Non-Ag) Class la ~ Ib 2,306,395 1,971,496
Agricultural (Class 2 8 4b(3)) 26,089 26,415
Commercial & Industrial (Class 3, 5(1), 8 5(3) (zoned Comm , nd., Pub Util))
Public Utility 8,896,911 9,083,644
Railroad Operating Property 21,165 21,371
All Other Commercial 8 Industrial 1,861,633 1,822,826
Non-Homestead Residential (Class 4a, 4b(1-2), 4c(1-4)(7-8), 4d 8 4e) 475,477 471,209
Commercial 8: Residential Seasonal/Rec (Class Ic 8~ 4c(5-6) 1,440 574
Other 38,402 33,618
Total Real Estate 552,026,100 13,624,729 523,312,900 13,435,937
Total Personal Property 5,448,200 184,951 4,868,700 170,102
Total Real and Personal Property 557,474,300 13,809,880 528,181,600 13,606,039
Subtract (Tax Increment) 531,305 628,072
Subtract (Power Line) 0 0
Adjusted Tax Capacity 13,278,375 12,977,967
The total "Estimated Market Value" and "Tax Capacity" (excluding captured tax increment value) of the "Taxing District"
• within this County for each of the following years were:
Levy Collection Estimated Adjusted
!ear Year Market Value Tax Capacity- Tax Capacity'"'
1999 2000 557,474,300 13,809,680 13,278,375
1998 1999 528,181,600 13,806,039 12,977,967
1997 1998 495,165,110 14,907,754 14,381,226
1996 1997 470,009,324 16,564,317 15,993,989
1995 1996 452,158,400 16,361,000 15,792,922
1994 1995 434,330,200 16,077,168 15,561,355
- INCLUDES tax increment
"DOES NOT INCLUDE tax increment
2 The ten largest taspayers in the "Taxing District', based on the total Tax Capacity of botht Real and Personal Property,
are as follows: 2000 1999
Taxpayer Type of Business Tax Capacity Tax Capacity
Northern States Power Co Utility 8,896,911 9,262,362
Monticello/Washington_Assoc Apariments 135,493 106,362
BBF Properties Commercial 109,124 0
Monti-Big Lake Comm Hospital Hospital 94,387 74,672
Wright Co Products Inc Commercial 62,016 63,334
Demeleules_Family LTD Prtnshp Industrial 74,722 58,632
The H Window Company Industrial 69,810 54,741
Remmele Engineering Inc Industrial 66,659 52,301
Raindance Partnership Commercial 63,069 49,484
JGR Partnership Commercial 61,654 46,383
Fulfillment Systems Inc Industrial 44,332
• TOTAL 9,633,845 9,812,603
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