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IDC Agenda 10-20-1994.7 IDC AGENDA, OCTOBER 20, 1994 NOTE CHANGE OF MEETING TIME from 7:30 a.m. TO ?:00 A.M. This change is the result of an executive decision made by IDC Chairperson McVay. • • • AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, October 20, 1994 - 7:00 a.m. City Hall MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty, Treasurer Ron Hoglund, Arve Grimsmo, Shelley Johnson, Don Smith, Jay Morrell, Ken Maus, Harvey Kendall, Mayor Brad Fyle, Tom Lindquist, Merrlyn Seefeldt, Steve Lemme; Dr. Glenn Nemec, Cyndie Johnson, Bill Tapper, and Jim Fleming. STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak. 1, CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE SEPTEMBER 15, 1994 IDC MINUTES. 3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL REPORT. 4. CONSIDERATION OF PROSPECT UPDATES: a) Fay-Mar Fabricators, Inc. b} Micro-Tech c) Miley Gjertsen • dj Quality Welding e} Boilermakers Local 647 f) Roger Christensen g) Redwood Falls company h) Litchfield company i} Right-Choice Services, Inc. j) Little Mountain Feed, Inc. k} Retail Services Corporation 1) TSG BRE REPORTS: a) August, Ken Maus - Rainbow Enterprises b} September, Tam Lindquist - Fingerhut Corporation c) October, Merrlyn Seefeldt - Electro Ind~_istries, Inc. d} November meeting - Jim Fleming - SMM Ollie Koropchak - Remmele Engineering e} Others 5, CONSIDERATION OF AN ACCOUNTABILITY OF BANQUET TICKET SALES AND BANQLIET FORMAT . 6. CONSIDERATION OF AN UPDATE REGARDING ZONING/PLANNING ISSUES: a) Buffer/screen/landscaping requirements • Continued • .7 r~ U • b} St. Henry's request to amend the official zaning map of the city of Monticello. Proposed 30-acre change from I-1 to PS {p»blic and semi-public} c} E & K Development request to amend the official zoning map of the city of Monticello. Proposed change from AO to R-1, R-2, and R-3 d} Amendment regulating pole building construction e} Sunny Fresh request for variance to the yard setback requirement f} C/I sewer, water, and storm sewer hookup fees 7. OTHER BUSINESS. a} Lots 1, 2, and 3, Block 1, OIP Second Addition b) Charlie Pfeffer's request to address the IDC c) Chamber Business After Hours Social - Today, 5:00-7:00 p.m., Monte Club d} Chamber Legislative Breakfast - Tuesday, November 1, 7:30 a.m., American Legion, Bill 8lazar, Minnesota Chamber of Commerce e) Chamber Candidate Debate - Tuesday, November 1, 5:00-9:00 p.m., Senior High Auditorium. City, County, and State candidates. f) Others 8. ADJOURNMENT. • r~ U r1 LJ • • • MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, September 15, 1994 - 7:30 a.m. City Hall MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin Doty, Treasurer Ron Hoglund, Arve Grimsmo, Shelley Johnson, Don Smith, Jay Morrell, Ken Maus, Harvey Kendall, Merrlyn Seefeldt, Steve Lemme, Dr. Glenn Nemec, Bill Tapper, and Jim Fleming. MEMBERS ABSENT: Mayor Brad Fyle, Johnson. Tom Lindquist, and Cyndie STAFF PRESENT: 1. CALL TO ORDER. Rick Wolfsteller, Koropchak. Jeff O'Neill, and Ollie Chairperson John McVay called the IDC meeting to order at 7:30 a.m. 2. CONSIDERATION TO APPROVE THE AUGUST 18 AND AUGUST 29, 1994 IDC MTNTT'1'R~ • Harvey Kendall made a motion to approve the August 18 and August 29, 1994 IDC minutes. Dr. Glenn Nemec seconded the motion and with no additions or corrections, the minutes were approv?d as written. 3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL REPORT. Treasurer Hoglund report?d a September balance of $3,848.21 at Metropolitan Federal and balance of $2,253.97 at Marquette Bank for a total balance of $6,102.18. The monthly revenue of $1,000 was payment for the banquet guest speaker from Marquette Bank and one disbursement of $39.94 for printing of banquet tickets. Kevin Daty made a motion to accept the September IDC financial report. Bill Tapper seconded the motion and with no additions ar corrections, the financial report was accepted and filed as given. 4. CONSIDERATION OF PROSPECT UPDATES: The written prospect update and BRE report was accepted without further questions. Additionally, Chairperson McVay added that puality Welding's current lease expires in six months. The availability of the • Page 1 • • • • IDC MINUTES SEPTEMBER 15: 1994 existing facility and the growth of the company are the determinants in the decision to expand and relocate. Kevin Doty reported negotiations continue for lease the second floor office space within Marquette Bank to Micro-Tech. The tele-sales office would employ 14 individuals with annual wages between $32,000 and $60,000. Micro-Tech manufacturers ear--canals, a component part far hearing aids. The production facility is located in Eden Prairie. Martie Jones of Janes Manufacturing will contact Koropchak with the name of a headhunter to assist with employment recruitment. Administrator Wolfsteller reported that the City Council on September 12 accepted the purchase offer of $36, 000 for Lot 4, Block 1, OIP Second Addition from Miley Gjertsen. The purchase offer is contingent upon granting the H-Window Company an extended 10-working day expiration date of the Right of First Refusal. The parcel is 2.3 acres. The Right of First Refusal and the Holding Agreement between the City and the H-Window expired the end of December, na request had been made for reconsideration of the matter. • BRE REPORTS: a) Ken Maus - Rainbow Enterprises, no report. b) Jay Morrell introduced Jahn and Martie Jones of Janes Manufacturing, Inc. John and Martie, two of six brothers, told IDC members that their father, a watch- maker, started the business in the basement of his hom? at the age of seventeen. Jones Mfg polishes, tumbles, and plates fine jewelry and gems. In 1989, the company employed 40 people. As gold prices increased and with large operations in New York, the work shifted to overseas causing a decrease in their employment to 24. They anticipate to process 500 to 2,000 rings per day next year. Five years ago, the company relocated to Walnut and 4th Street and entered the retail business. They've seer, 200 increase in growth every year. A future venture may include the opening of a second retail stare in a more dense populated area. John manages the commercial business and Martie the retail. c) Arve Grimsmo referred to Steve Lemme far a H-Window update. Mr. Lemme reported the company began the 25,000 sq ft manufacturing and 4,000 sq ft see;ond--floor office expansion last October. On September 24, the H-Window • will host an open house for employees and the general Page 2 • ~ 1 LJ • • IDC MINUTES SEPTEMBER 15, 1994 p~?~blic. The 12:00-6:00 open house will consist of a barbecue and tour of the facility ar~d products. The company anticipates the introduction of two new products within the next couple of months. The company originally purchased 10-acres of land, the current facility utilizes five of those acres. Witt. the $36,000 offer for Lot 4, the H-Window will focus on making a decision on the westerly 5-acre, three-lot parcels within the next month. The H-Window will not stop purchase of the lot to Mr. Gjertsen; however, they have concerns regarding the potential of becoming landlocked and question the value of a pole barn to stare sprinkler system supplies with projected annual taxes of $6,000-$7,000. Karopchak acknowledged the H-Window visit and tour by Commissioner Peter Gillette, the deputy commissioner, Wood Pradu~ts Industry Specialist Dentley Haugesag, and Representative Mark Olson. Steve mentioned US Representative David Minge had also toured their facility. • After some further discussion and the c_:onsideration of what might be at stake, Shelley Johr~san suggested and Arve Grimsmo made the motion to encourage City Council to make every attempt to negotiate an agreement satisfactory to both parties for the westerly three lots. Harvey Kendall seconded the motion. Jay Morrell stated he would not be in favor of the city holding the property without any campensaticn as this would set a precedent for other industrial businesses to make the same request. The motion passed unanimously. d} Tom Lindquist - absent. e} Bill Tapper - Bill reported are both Genereux and Westlund's growth and all-time high sales. Initiated through the city, a financial proposal is being structured for the 17,000 sq ft southerly production and mezzanine/lunch room expansion. The company is busting at its seams and the expansion will also reshape the production area for better shipping. All goes well, along with the general frustrations. The company introduced four new-products in Atlanta. The B-puick products are a drilling machine for cabinetry, 2 plastic cabinetry accessories which involved SMM and Aroplax, and a roll-out cabinetry accessory. U Page 3 • • • r~ ~J IDC MINUTES SEFTEMEEP. 15, 1094 BRE Updates: a) Sunny Fresh Foods, Inc. - In addition to the written agenda supplment, Jeff O'Neill expressed he felt perhaps a rail crossing at Locust can be accomplished with the pull Cargill has with BN. The Planning Commission will hold a public hearing and consider a variance request to the yardset requirement on October 4. Members suggested moving with caution because if the tracks or when the tracks were abandoned would 5th street be utilized as a street or for another purpose. Northwest Associates is preparing land use and transportation study for the Sunny Fresh area. r 1 • 5. Consideration of Infrastructure and Planning Commission Updates: The IDC accepted the written update. In addition, Jeff O'Neill made the following comments: a) 15-minute Comprehensive Plan Update by Jeff O'Neill - The process far updating the Comprehensive Plan must .f_irst be determined and its anticipated the process will be determined by the first of the year. b) Pole Barn Ordinance - Because of the late September Planning Commission meeting, the pro and con study prepared by Northwest Associates was distributed to the commissioners at 11:30 p.m. which was too late far consideration. The commissioners requested a recommendation from the IDC. Staff presented IDC members with five basic policy options to consider for regulating pale building construction. A pole building defined as any structure characterized by its woad pole framing and lack of a full perimeter foundation. With the general consensus of the need far both a continuous foundation and asethetically pleasing structures and the IDC's lack of expertise for specifics, the members requested the planner consultant, staff, and the Planning Commission establish a standard footing design for principal structures within industrial zones. Bill Topper's opinion was a company investing in the construction of a larger 20,000 sq ft facility will consider the long term life and value of the structure. However for the startup business, economics is an issue and should be considered in an outlined area. c) Buffer, screening, and landscape requirement along residential and industrial boundaries - IDC requested a special meeting cf all parties. Page 4 • • • IDC MINUTES • SEPTEMBER 15, 1094 E. Consideration of Subcommittee reports: The written report was accepted by the IDC. In addition, Koropchak distributed banquet tickets and reminded members that an accountability of tickets sold will be taken at the October 20 meeting. 7. Other Business: The written report was accepted by the IDC. Don Smith requested that the 7:30 a.m. starting time for IDC meeting be placed of the October agenda far review. It appears with the longer agenda, this is conflict with business opening hours. 8. ADJOURNMENT. The IDC meeting adjourned at 9:10 a.m. ~~~`~C? . Ollie Koropchak, Executive Director Page 5 • • • • IDC AGENDA OCTOBER 20, 1994 4. Consideration of Prospect Updates: a) Fay-Mar Fabricators, Inc. - Final building plans were submitted on October 18 to the Building Official for review. Within the Private Redevelopment Contract for use of TIF, the beginning construction date was changed from October 20 to November 20, 1994 with a six-month period far completion. Gratis banquet tickets mailed. b) Micro-Tech - Negotiations continue between Marquette Bank and company officials for potential lease of the bank second-floor as a tele-,sales office. Gratis banquet tickets mailed. c) Miley Gjertsen - Preliminary plans for a 50 X 180 sq ft pole building have been submitted to the Building Official for review. Lot 4, Block 1, OIP Second Addition. d} Quality Welding - No new information. Gratis banquet tickets mailed. e} Boilermakers Local 647 - Requested availability of incentive packages far prospective businesses. Plus need for two-acres far their 5-7,000 sq ft office, meeting • room, and auditorum and 2,000 sq ft for training center which involves a classroom area and shop for welding/burning training. f) Roger Christensen - Realtor looking for a 10,000 sq ft office/warehouse for distribution. 12-14 full time jobs. g) Redwood Falls company - Very preliminary. Expansion of manufacturing facility. Request confidentiality. h} Litchfield company - Request confidentiality. Looking for rail and highway. 25,000 sq ft building with potential of 30-50 jobs. Custom molding. i) Right-Choice Services, Inc. - Coupon redemption marketing firm, 26 full time jobs. Looking to combine Buffalo and Maple Grove facilities under one-roof. Initial building 12,000 sq ft; potential expansion in five years 30-50,000 sq ft. j) Little Mountain Feed, Inc. - Retail, production, and wholesale of bird feed. Also sells cat, dog, and horse feed. Has located in old Central Sota B~_~ilding behind Sunny Fresh. Jeff Burns. k) Retailer Services Corporation - Relocation of production facility from NE Minneapolis. Need 25-30,000 sq ft with 3-4 small offices. Current 25 full time jobs, wage averag? $12.00-$13.00 ph. Current lease expires in March. Production of retail store cabinets and counter tops for customers such as Northern Hydraulic and Titlewave. Gratis banquet tickets mailed. Page 1 LJ • r1 L..J • IDC AGENDA OCTOBER 20, 1994 1) TSG - Manufacturer and assembler of computers. Startup company. Needs existing 10-20,000 sq ft building, ane- two loading docks. ml Life-Time Industries, Inc. - Looking to lease 5-10.000 sq ft manufacturing space. Foam rubber dye-cutting. Self and partners. • • Page 2 r~ u C • IDC AGENDA OCTOBER 20, 1994 5. Consideration of an accountabilit of ban uet ticket sales and banquet format. Account for ticket sales. Banquet format changes: Assigned seating. Written program brochure description of industries and insert of a manufacturer's quiz. Social located on first-floor. • Page 1 ~~ ~~ ~~ • • IDC AGENDA OCTOEER 20, 1894 6. Consideration of an u date re ardin zonin tannin issues: a) BufferJscreenllandscaping requirements - The Planning Commission Public Hearing to amend the ordinance for establishment of buffer yard standards was held October 4. M&P Transports submitted a letter in opposition to the suggested 6-foot berm and recommend a minimum 13-foot berm. Koropchak questioned the construction and completion time of the berm as it relates to the Klein property development, suggesting berm construction commence and be completed prior to Phase I development therebye ensuring an immediate buffer zone to the developed industrial park. The commissioners tabled any action to allow time for review of the study completed by Northwest Associates. b} St. Henry's request to amend the official zoning map of the city of Monticello. Proposed 30-acre change from I--1 to PS (Public and Semi-Public} - The proposed rezoning amendment was approved by the Planning Commission and thereafter approved by the City Council. A faint purchase agreement for the 72-acre parcel is between the seller, Gladys Hoglund Family and the buyers, St. Henry's, Bondhus Corporation, and Dahlheimers. The • proposed PS (church) is approximately 30-acres and tha remaining 42-acres is split between Bondhus and Dahlheimer. Although the 42-acres remains zoned I-1, future plans for the property are unknown. c) E & K Development request to amend the official zoning map of the city of Monticello. Proposed change from AO to R-1, R-2, and R-3 - Rusty Demeules of Standard Iron and Joel Abraham of Remmele Engineering attended the Planning Commission Public Hearing on October 4. Mr. Demeules commented that he located in Monticello because of a favorable industrial park. He sees the property to the south as a natural growth for the industrial park because of its proximity and access to bath I-94 and Highway 25. He said the zoning proposed for the Klein property was similiar to that approved in New Hope Phis previous location) which has presented problems. Mr. Abraham of Remmele agreed with Mr. Demeules. Koropchak went on record as opposed to the rezoning amendment stating non-compatibility of the proposed zoning, establishing a new industrial park location for future use would only recreate similiar issues; continuous decline of available industrial property, and referred to the examples of the study completed by Northwest Associates for the Sunny Fresh area (,compatibility of I-2 zone to residential and public zone, the appropriateness • of such close proximity.) The Planning Commission Page 1 r~ ~~ • IDC AGENDA OCTOBER 20, 1994 approved proposed rezoning amendment. The City Council tabled any action of the proposed amendment request. A closed council meeting was scheduled for October 20, 4:30 p.m. for discussion of possible litigation. d) Amendment regulating pole building construction - At the September 6 Planning Commission, the commissioners tabled ordering a public hearing for ordinance amendment regulating pole building construction awaiting IDC recommendation. At the IDC September meeting, members stated they were not in the position to make specific recommendation; only, requested the planner consultant, city staff, and the Planning Gommission establish a standard footing design far principal structures within industrial zones. For further action has been taken. e) Sunny Fresh request far variance to the yard setback requirment - At the October 4 Planning Gommission Public Hearing, no opposition was raised. Northwest Associates presented a study of the Sunny Fresh area, the $2,800 study was paid for by Sunny Fresh. The request was far a 30-foot encroachment of 5th Street which is currently occupied by Burlington Northern. The request would allow • Sunny Fresh to construct a refrigatered warehouse facility directly adjacent and south of their existing facility. Planning Commission tabled any action allowing time for a response from BN and far the commissioners to review the study. f) C,'I sewer, water, and storm sewer hookup fees - A city staff personnel will present the completed study of c/i hookup fees compared to other communities, examples of before and proposed fee increases, and the proposed recommendations to the city council, Examples used are Standard Iron, Aroplax, and Custom Canopy. Page 2 • • • SEWER & WATER HOOK UP SURVEY OCTOBER, 1994 BASE RESIDENTIAL FEES • Gallons/Day City Water Sewer Unit Basis Monticello 300 + Meter 300 250 Big Lake 375 + Meter 400 Currently considering increase & formulas Buffalo 500 1,000 164 Elk River 1,000 1,300 274 Hutchinson 500 500 Working on formulas & increases Rogers 400 1,300 ~'`~ 274 ''F' 'Nut~~. ~'3no ~..-Lr~. -~- ~ 1 , no o w ~..~..a~ ..~ X21, sumo-w° ~~ iT~^ ~.-~,, RESIDENTIAL NOTES: A. Buffalo, Elk River and Rogers charge 80% sewer access charge for apartment units and 75°Io for subsidized apartments. B. Monticello charges 75°!o for multiple apartment units. COMMERCIAL NOTES: A. Buffalo reduces sewer access charge by 50°Io after two units and 80°Io after eight units. B. Elk River uses the metro table based upon 274 GPD (per unit) x $1,300 per unit. C. Rogers increases residential base WAC & SAC charges by 100°lo for commercial and uses 274 GPD (per unit) SAC (e.g., $300 x 2 = $600 # $1,000 = $1,600 for each unit). D. Monticello uses 250 GPD (per unit) x $300 per unit for commercial and industrial. • DEFINITIONS: WAC=Water access charge SAC=Sewer access charge GPD=Gallons per day • r~ u • J a Z J U W ~2 U Z ~_ Q 0 U w C~ V W o U U °' Q d ~ W ~ T H vs m ~ ~ o ~N Q K 0 Q W ... Q U U Q W W ~ J Q 0 ~ ~ 0 O 01 O 0 0 ~ ti H ~ b~} ffl 4f~ 6F} M . . . O a U Q o M 0 °o 0 cofl 0 o 0 ° c 3 ~ _ _ ~ ~ ~' ~ ~ co U ~ O O O f /! 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Plans are for the City Council to consider the agreed-upon- options at the November 14 City Council meeting. f) Other - At the September Star City Conference, the two repetitive concerns voiced state-wide were the labor shortage and housing shortage particular for seniors. The City of Elk River received an All-Star Award and Marketing Award. Harry Martin, Pr?sident of the Tupelo Community Development Foundation, spoke of their success in creating over 1,000 jobs each year for more than a decade. • Page 1