IDC Agenda 06-15-2000f
AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, June 15, 2000 - 7:00 a.m.
City Hall - 505 Walnut Street -Academy Room
MEMBERS: Chair Tom Ollig, Vice Chair Kevin Doty, Shelly Johnson, Don Smith, Tom
Lindquist, Bill Tapper, Dick Van Allen, Bob Mosford, Don Roberts, Mike
Benedetto, Dan Carlson, and Jim Amundson.
COUNCIL LIAISON: Mayor Roger Belsaas.
STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak.
GUEST: Bret Weiss, WSB, Inc. (City Engineer Consultant)
Call to Order.
2. Consideration to approve the May 18, 2000 IDC minutes.
3. Consideration of updates:
a) Mayor Belsaas -Mayor's report
b) Koropchak -Prospect and BRE
c) Smith, Ollig, or Van Allen -Marketing
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4. Continued -Consideration of an update on the progress to actively pursue acquisition of
land for future industrial use.
a) Grading Study for Chadwick parcel.
b) Draft copy of Swap Agreement b twee City and Chadwick parcel.
c) Planning Commission Update of relative to Gold Nugget parcel.
d) Update on Chelsea Road West Development.
BRET WEISS WILL PROVIDE AN UPDATE ON THE GRADING STUDY.
"Is the proposed swap meeting the objections of the IDC and City Council?"
5. Consideration to hear feedback of the City's Bus Tour and Golf Outing (promotional
event).
6. Other Business.
7. Adjournment. Next IDC meeting, July 20, 2000.
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MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, May 18, 2000 - 7:00 a.m.
City Hall - 505 Walnut Street -Academy Room
MEMBERS PRESENT: Chair Tom Ollig, Vice Chair Kevin Doty, Shelly Johnson, Don
Smith, Tom Lindquist, Bill Tapper, Bob Mosford, Don Roberts,
Mike Benedetto, and Dan Carlson.
MEMBERS ABSENT: Dick Van Allen and Jim Amundson.
COUNCIL LIAISON ABSENT: Mayor Roger Belsaas.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill and Ollie Koropchak.
Call to Order.
Chair Ollig called the IDC meeting to order at 7:00 a.m.
2. Consideration to approve the Apri120, 2000 IDC minutes.
Shelly Johnson made a motion to approve the Apri120, 2000 IDC minutes. Seconded by
Dan Carlson and with no correction or additions, the minutes were approved as written.
• 3. Consideration of updates:
a) Mayor Belsaas -Mayor's report. No report.
b) Koropchak -Prospect and BRE. See Attachment A.
c) Smith, Ollig, or Van Allen -Marketing.
Ollig reported Van Allen, Koropchak, and he met relative to plans for the Mayor's
Bus Tour and Golf Outing, June 14. Koropchak submitted a copy of the invitation
mailed to some 92 developers, contractors, real estate agents, and consultants.
4. Continued -Consideration of an update on the progress to actively pursue acquisition of
land for future industrial use.
a) Grading Study for Chadwick parcel.
Couple of questions: Does the deal hinge on the timing of the gravel removal?
What is the timing and amount of land available for development? Amount of
contiguous acres? These are some unanswered questions. Twenty acres of the
185 acres abutting the Bondhus Addition is zoned residential. Neighborhood
meeting hasn't been scheduled.
b) Draft copy of Swap Agreement between Citv and Chadwick parcel.
With the above questions yet under discussion, it appeared premature to submit
the preliminary draft copy of the swap agreement to the City Attorney for review.
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IDC Minutes - 5/18/00
c) Planning Commission Update of May 2 relative to Gold Nugg~ parcel.
O'Neill reported the Planning Commission elected not to further explore land use
options, in hold or in part, relative to the Gold Nugget site as recommended by the
IDC. O'Neill felt the Commission decision was based on the pending law suit.
Looking from a point of view of global, the future, and large users, the IDC
requested the Planning Commission revisit the topic: If not the Gold Nugget parcel
for industrial use, then where? Another IDC member summarized other topics as
it relates to the Gold Nugget discussion: Interchange improvements at Hwy 25 and
I-94 and potential construction of future Orchard Road and I-94 interchange, Gold
Nugget law suit not going away fast, and two parcels (Bohanon and Gold Nugget)
suggested for industrial use by the IDC difference from that of the two
jurisdictions.
d) Update on Chelsea Road West Development.
Bid opening for signalization and Chelsea Road West scheduled for this Friday.
All adjoining property owners onboard and road completion expected in August.
Consideration to hear a presentation by IDC Member Don Roberts: As a member of the
site selection team. Don will share his experiences and insight.
Don Roberts shared with IDC members his experience as a member of the Cargill Team
who conducted a site analysis search for a proposed Sunny Fresh expansion. Currently
• Sunny Fresh has facilities in Minnesota, Michigan, and Iowa. The search was conducted
about six months ago. The company identified the importance of being near their
ingredient "the egg" which ultimately meant close to the corn belt. Additional items of
importance: Distribution, water/sewer capacity (being a wet industry the company
requires 50,000 gallons of water per day), land available fora 50,000 sq ft facility plus
circulation (15 acres) with competitive utility providers, and not next to heavy industrial
user. Sunny Fresh as a food industry wanted a clean look and image.
The State of Iowa is extremely aggressive with agricultural businesses with offerings of
state and local incentives. Sunny Fresh narrowed their selection to three communities and
then turned to the communities. Sunny Fresh expects to create 40 new jobs for an
investment of 8 million dollars in a community. The field was narrowed to Fort Dodge,
Nebraska and Mason City, Iowa. Sunny Fresh selected Mason City, Iowa. Land price
between $25,000- $35,000, electric/gas non-negotiable, water/sewer rates locked for five
years. In Fort Dodge, the Nebraska Electric provider offered a reduction in rates. Both
communities were extremely receptive and operate as a private non-profit corporation
which holds and owns land. Fifteen/twenty community leaders and contractors represent
the corporation. The union town stigma still remains in Fort Dodge who offered a three
million dollar incentive package. Mason City offered a two million dollar incentive
package and a higher quality of life. The labor (unemployment rate is less than 3%):
however, the incentive package included a $200,000 education grant for training of skilled
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IDC Minutes - 5/18/00
workers at a community college. Additionally, the City offered TIF $700,000; a
$350,000 loan from the corporation, and a $500,000 interest free loan from the state.
With his experience behind him, Roberts sees City of Monticello as a great community
located along I-94. However, he felt the unanswered question remains: What does
Monticello want to be? Members thanked Roberts for sharing his experience.
6. Other Business.
Members inquired as to the purpose of the grading along Chelsea Road in the Monticello
Commerce Center. Other than for site prep and drainage purpose, staff was unaware.
7. Ad, journment. Next IDC meeting, June 15, 2000 and tour of Tire Service Mfg.
Equipment.
The IDC meeting adjourned at 8:10 a.m. and the committee toured Rainbow Enterprises.
CSC \~~~~5~`~~
Ollie Koropchak, Recorder
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ATTACHMENT A
May 18, 2000
Consideration of Executive Director's Report.
a) TIF District No. 1-12 -Attached is a letter to the Schoens notifying them of the
Commission's action of Apri15 including an invoice of payment due. As of Apri125, the
May 5 payment has not been received.
b) 2000 Minnesota Business Assistance Forms - At the April meeting, the Commissioners
requested a copy of the forms submitted to the State as relative to the HRA subsidy. Not
attached are the EDA or City forms.
c) Prospects -Letter to Linda Lund. A message was on my voice mail and Linda is out-
of-the-office until Apri126 so unable to get more detail of the manufacturing business.
After faxing and mailing the information and brochures, Charlie Pfeffer updated me on the
availability of the 60.55 acres as marketed. The 60.55 is less the 7.15 acres being platted
for Profile, vacant, and Pipeline and less another 10 acres for a client Charlie is working
with. This means the marketed parcel consists of 43.4 acres not 60.55 acres. The other
larger parcel marketed is that proposed by the City for swap with Chadwick.
d) Wayne Gus -Power Training Service. Looking to construct a 5,000-6,000 sq ft steel
building. Rebuilds railroad and bulldozer transmissions. Requested no assistance.
Currently in Rogers. Gave Pfeffer's phone.
e) DaveHost -Twin City Bindery -Lease up in December, wants to build 10,000 to
12,000 sq ft steel building at a land and building value of $250,000. Big Lake aggressive
to give land and partner with contractor to construct a 7,500 sq ft block building. States
• Big Lake taxes are lower. Becker can do metal building and aggressive. Liked Monticello
but didn't find very aggressive for his needs as I did not offer TIF.
f) Twin City Die Castings -The company has altered its design of the facility by removing
the steel curved tower and the glass walkway to reduce the costs incurred to comply with
the fire codes of a magnesium process facility. The square foot of the office and
manufacturing facility remain the same and should not affect the tax increment generated.
Besides this is apay-as-you-go.
g) April 26 -Rick and I will attend a meeting of Wright County Administrators and
Economic Development Professionals at the Buffalo County Club. Janna King is the guest
speaker.
h) Kraus Anderson -Will be marketing the City of Monticello to Bruce Halbasch, Vice
President of Marketing, on May 4, 11:15 to 11:40 am. Arrangement through Heidi
Pepper, Wright County Partnership.
i) Billie Kroll -Voice mail from Billie relative to Intercomp's decision to remain and lease
additional space in Plymouth. Perhaps in the future will move out and construct own
facility.
j) Profile Powder Coating -Presently unable to obtain financing. Stop action. Perhaps
next 2001. EDA reviewed preliminary GMEF application Apri125.
k) Update of community profile - Am pleased with the response from businesses relating
to job and wage status and other info requested to update the 1996 profile. Plan to
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summary arate-of--return based on current market rate and total wages paid to amount of
TIF assistance.
1) Advanced Extrusion -start-up company from Rogers area. 6 acre site fora 25,000 to
100,000 sq ft building. NEEDS rail.
m) Allied Companies -Unable to reach.
n) Big Lake -Call from Jim Thaues. Congratulations on Profile and wanted our TIF
Policies.
o) Gus LaFromboise -Inquire for potential development of his 3.19 acres along East 7
Street.
P) Ataboy -Greg Mooney continues to work with Ataboy. Looking at Monticello and
other communities.
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We will have to
Sin erely,
Ray chmidt
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2000
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~.~leetii~g set to meet at TSI plant on June 15, 2000 will not
Regional Trade Centers in Trade Center Hierarchy Example
Central Minnesota
Economic centers in a region are important for keeping a
critical mass of economic activity and therefore jobs close
to where people live while providing the economies of scale
needed for some industries to survive in rural Minnesota. A
report recently released by the Center for Urban and Re-
gionalAffairs at the University of Miruiesota (CUBA), Trade
Centers of The Upper Midwest-1999 Update, builds upon
research projects completed in 1963 and 1990 that classi-
tiedcommunities into a hierarchy of regional trade centers.
h1 Central Minnesota 12 communities were identified as serv-
ingrelatively large geographic areas ranking in levels zero
through three in the seven-step hierarchy. Only the Twin Cit-
iesarea made the top Icvel in Minnesota; Major Metropoli-
tan Area. St.Cloud and its adjacent cities reached the next
level ofPrimary Wholesale-Retail Trade Center (Level One).
Buffalo, Ells River, Hutchinson, and Willmar followed asSec-
ondaryWholesale-Retail Centers (Level Two) while the com-
munities ofCambridge, Glencoe, Litchfield, Monticello,
Mora, Princeton, and Sauk Centre were labeled Complete
Shopping Centers (Level Three). Communities were ranked
based on population, types of industries in the community,
:..
Communi Level 1990 Level 1499 Cnnuuunl Level I99b Level l
St. Cloud 2 1 Glencoe 4 3
Buffalo 3 2 Litchfield 4 3
~ Elk River 3 2 Monticello 4 3
Hutchinson 3 2 Mora 4 3
WiWnar 2 2 Princeton 4 3
Cambridge
Sauk Centre
~ Major Metropolitan Area Twin Cities
~ Primary Wholesale-Retail Center St. CIoUd
I Secondary Wholesal+§ Ref,#i I Center Byffala ;,.
CarnpleteShoppingCenter Litthfield
Partial Shopping Center Paynesville
Full Convenience Center Stacy -
~c Minimum Convenience,Center ~ not listed
Harr~let ° ` ~ no't liste''d
and number of businesses in those industries.
As significant as where these trade centers are located, is
whether they have moved up or down in the hierarchy
since 1990. All trade centers in levels one through three in
Central Minnesota except one, Willmar, moved up one
level from 1990 to 1999. Several communities in the State
moved up one level with an occasional community moving
two levels. While the regional trade center concepts used
here do not provide a complete picture of economic ac-
tivity inany one community it is useful for comparison pur-
poses and helps planners understand where growth has
occurred and where it may continue to occur. Already the
Minnesota Department of Transportation has used the re-
port tohelp identify critical roadways in the State and as-
sesstheir capacity to handle future traffic volumes. For
more information contact CUBA at (612) 625-1551 or
e-mail them at cura@tc.umn.edu
This 7uarter's edition of Regional Employment Kevierv was ivrilten
by Greg Bergman, Regionn[Annlystfor Nortlnvest Minnesota.
Please direct comments and rluestions regarding information
contained in these articles to Greg vin a-mail nt
greg.bergman@stnte.mn.us ortelephone nt (118) 825-6775.
New Publications Available
The Minnesota Department of Economic Security (MDES)
Research and Statistics Office has recently released some
new publications which are available for free or for a small
printing fee. Employment Outlook to 2006 is now available
for Central Minnesota and other regions of the State as well
as for Minnesota as a whole. You can gain insight into what
industries and occupations are expected to grow in your re-
gion and the State. Minnesota Salary Survey 1998 shows
what employers throughout the State are paying employees in
over 600 occupations. What Employee Benefits Can Do For
You is a new four page booklet that helps you identify and
understand what employee benefits are likely to be offered
by employers in Minnesota. The .Minnesota's Most Mar-
ketable Skills report looks at occupational skill. requirements
considered most "marketable". The authors identify market-
able skills as those skills that are associated with either high
wages and/or rapid employment growth. Career explorers,
job seekers, and career counselors might find this report
particularly interesting. Finally, results ofthe 1999 Twin Cit-
ies Job Vacancy Survey have been published in a report
called Help Wanted. Through the survey 4,300 Twin Cities
area employers were asked about their job vacancies open
for hire in an effort to quantify the actual demand for job
seekers in the region. Results of the survey show that there
were an estimated 44,300 job openings in the Twin Cities
during the survey period or 2.8 openings for every 100 jobs.
For more information on this report and the other publica-
tions listed above contact the MDES Research and Statis-
ticsOffice at (651) 295-6545 or your Regional Analyst listed
on page 4.
May 10, 2000
Aroplax Corporation
200 Chelsea Road
Monticello, Minnesota 55362
To Whom It May Concern:
Last week [conducted an inspection of your addition for the purpose of observing fire door function.
Upon that inspection the fire doors did not close and a reinspection is required.
In addition I observed a new opening through the 2-hour fire resistive wall, apparently cut for a window.
The window opening must be protected by a listed and labeled 90 minute fire resistive assembly. Your
Architect or Contractor may select any assembly so listed and labeled. After installation, an inspection
must be conducted by a city building inspector.
I also found that the mechanical smoke and heat ventilation system required for high piled storage in the
warehouse addition was installed. Installation of that equipment was done without required permits and
inspections. Design of the smoke and heat removal system must be prepared by a Minnesota licensed
professional engineer. That design must be made in compliance with Uniform Fire Code Standard 81-3.
Upon my observation, the installation did not appear to meet the requirements of that UFC Standard.
You should contact the persons employed to install the mechanical smoke and heat removal system and
make necessary arrangements to have the system properly designed, permitted, installed and then
inspected. This is quite important given that you have already loaded the racking with plastics and other
commodities.
I have attached a copy of UFC Standard 81-3. [f you have questions or concerns, please contact me at
271-3214.
Sincerely,
Fredrick H. Patch, Building Official
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Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
MONTICELLO
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June 2, 2000
Aroplax Corporation
200 Chelsea Road
Monticello, Minnesota 55362
To Whom It May Concern:
On May 10, 2000 [ wrote a letter to Aroplax Corporation regarding items necessary for certificate of
• occupancy. Please let me know if you intend to complete the items that remain outstanding. I have
attached a copy of the letter previously sent.
I may be reached at 271-3214 or by cell phone at 685-7848 if you require fiirther information..
Sincerely,
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Fredrick H. Patch, Building Official
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Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272
MONTICELLO