IDC Agenda 08-18-1994AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, August 18, 1994 - 7:30 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, Steven Lemme, Dr.
Glenn Nemec, Cyndie Johnson, Bill Tapper, and Jim
Fleming.
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
GUEST: Ron Bray or Chuck Rickert, OSM.
* PRESENTATION BY O5M AND CONSIDERATION TO DISCUSS THE
TRANSPORTATION STUDY.
.1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JULY 21, 1994 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT
.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Fay-Mar Metal Fabricators, Inc.
b) Steinwall, Inc.
c) Micro-Tech
d) Phoenix Solutions
e) Miley Gjertsen
f) John Holman
g) SD plastic injection molder
h) Jack Blaydes
i) Quality Welding
j) Joe Stecklic
BRE REPORTS:
a) Ken Maus - Rainbow Enterprises, Inc.
b) Jay Morrell - Jones Manufacturing, Inc.
c) Others
SEPTEMBER BRE REPORTS:
a) Arve Grimsmo - H-Window Company
b) Tom Lindquist - Fingerhut Corporation
• (Continued)
• 5. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Finance - Ron Hoglund
b) Planning (Executive) - Kevin Doty
c) Infrastructure - Harvey Kendall
d) BRE - Tom Lindquist. Banquet tickets will be distributed
at the September meeting. Banquet date, Tuesday, October
25, 1994.
e) Legislative - Ollie Koropchak
f) Marketing - Kevin Doty
g) Education - Shelley Johnson
6. OTHER BUSINESS:
a) Follow-up on the Governor's Design Team idea.
b) Copy of letters of communication.
c) Copy of the MBF (old OMNI) year-end-report.
d) Chamber meeting today, noon, American Legion. Program
John Yngve, Minnesota Technology, Inc.
e) Other.
7. ADJOURNMENT.
•
MINUTES -
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, July 21, 1994 7:30 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Shelly Johnson, Arve
Grimsmo, Don Smith, Harvey Kendall, Jay
Morrell, Ken Maus, Tom Lindquist, Dr. Glenn
Nemec, Cyndie Johnson, and Jim Fleming.
MEMBERS ABSENT: Vice Chairperson Kevin Doty, Treasurer Ron
Hoglund, Mayor Brad Fyle, Dennis Taylor,
Merrlyn Seefeldt, Steve Lemme, and Bill
Tapper.
STAFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUEST: Rotarian Jim Eastwood, Cookstown, Northern
Ireland.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:30 a.m.
• 2. CONSIDERATION TO APPROVE THE JUNE 16, 1994 IDC MINUTES.
Dr. Glenn Nemec made a motion to approve the June 16, 1994 IDC
minutes. The motion was seconded by Harvey Kendall and with
no additions or corrections, the minutes were approved as
written.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
In the absence of Treasurer Hoglund, Koropchak reported
monthly balances of $3,874.76 at Metropolitan Federal and of
$1,249.35 at Marquette Bank - Monticello for a total balance
of $5,124.11. Arve Grimsmo made a motion to accept the
monthly IDC financial report as given. Seconded by Dr. Glenn
Nemec and with no additions or corrections, the financial
report was accepted and filed.
4. WELCOME OF AND PRESENTATION BY ROTARIAN JIM EASTWOOD.
Chairperson McVay welcomed Mr. Eastwood to the IDC meeting and
asked Don Smith to introduce Jim Eastwood.
In his introduction, Mr. Smith informed members that Mr.
Eastwood ran two businesses in Cookstown, Northern Ireland.
One, a sheet metal business which employs 10-12 people. The
• Page 1
IDC MINUTES
• JULY 21, 1994
company produces one product, a heating boiler, and its market
is the United Kingdom. Secondly, he's director of the
Cookstown Enterprise Center.
Mr. Eastwood states that the Cookstown Enterprise Center is
financed by the British Government and was developed to assist
new small businesses (1-50 employees.) Larger businesses
(over 50 employees) are assisted by the Industrial Development
Board and European Fund. Ireland's high unemployment rate,
15~ to 22~, is the result of a decline in the agriculture,
linen, and ship building industries as well as increased
automation.
The Enterprise Center is a hands-on support for startup
businesses. Support initiates from the point of an idea
through business plan preparation, operational training, etc.
and funding. Purpose is to create ood businesses. Their
training is one of the best developed in Europe and more
favorable than any in the US or Monticello. These loans are
high-risk, non-returnable, and approval is based on knowledge
of business. Loan amounts run from 1,000 pounds to 25,000-
30,000 pounds.
• Because of Ireland's geographic location, high unemployment
rate, available land, and readiness; they are able to obtain
large dollar amounts from the European Fund. Most recent, a
large Korean industry, has agreed to expand to Ireland and
will receive assistance in the neighborhood of 61 million
pounds for training, relocation of key personnel, education,
etc. Marketing consists of high-profile advertisement and
education.
The Enterprise Center tracking system indicates approximately
10~ of the creative ideas actually become a business and the
success rate of the 10~ is about 50~. It takes about 12-18
months for a business to mature. Failure is generally cash
related.
Asked about industrial competition between Cookstown, Belfast,
and Dungannon, Mr. Eastwood responded that the major
difference between Belfast and Cookstown is transportation.
Belfast is served by air and Cookstown by sea. Dungannon is
the greater competitor because Cookstown and Dungannon have
similar marketing strengths.
Mr. Eastwood foresees the potential for an exchange of
Cookstown-Monticello industrial expertise and joint-ventures.
• Page 2
IDC MINUTES
• JULY 21, 1994
While in Monticello, he visited Bondhus Corporation, Suburban
Machine & Manufacturing, H-Window Company, and Sunny Fresh
Foods.
Chairperson McVay thanked Jim Eastwood and wished he and his
family a pleasant return trip to Northern Ireland.
5. CONSIDERATION OF PROSEPCT UPDATES:
The IDC accepted the written report.
Chairperson McVay inquired of the interest to visit the Morton
Builder's headquarter in St. Cloud regarding an expansion
location to Monticello. Jim Fleming volunteered to
participate. Ken Maus inquired to the status of Monticello's
ordinance regarding allowable construction of pole barns or
metal buildings and suggested this be resolved first.
Additionally, McVay inquired of the potential for Clow
Stamping to sell their Monticello real estate inorder to meet
the needs of some prospects. Koropchak responded that
previous inquiries indicated the ability to sell or to prepay
industrial revenue bonds was null.
• BRE UPDATES•
In addition to the written report, Koropchak informed members
that the $250,000 equipment grant to the City of Monticello
for a loan to the H-Window has not been awarded by the State.
The State request the award be funded by Federal dollars
rather than the proposed State dollars. Major difference is
the increased amount of accountability and documentation
required by both the H-Window and the City. However, the City
is able to retain the full $250,000 principal and interest
payback for its revolving loan fund.
Secondly, Ray Schmidt of the Tire Service Equipment Company
has contacted the City Building Official regarding procedures
necessary for expansion of their facility.
BRE REPORTS•
Shelley Johnson reported the Hoglund Bus Company has five
different businesses within its organization. The five
businesses are student transportation, commercial/coach,
ambulance, bus sales, and used-vehicle restoration. The
latter business, a new concept and going extremely-well,
allows part-time bus drivers to become full-time workers.
• Page 3
IDC MINUTES
• JULY 21, 1994
They are short of space and employ 40-50 individuals, FT/PT.
Shelley volunteered to contact and report on D&D Bus Service.
Harvey Kendall reported on the NSP Nuclear Plant stating
things have quieted down. The refueling outage is scheduled
for September 15 to October 3. The plant relicense issue is
on-hold. Due to company reorganization, the Monticello plant
is downsizing its 300+ employment by not replacing individuals
and cutting consultants. Harvey reports the new company buzz
words are "repower and heat generation." No new sitings are
being sought and the company has not given up on the extenion
of nuclear power. In spite of other potential growth and
expansion, one concern of the IDC is the potential de-
valuation of property if the reactor was retired.
Don Smith reported Sunny Fresh Foods' latest addition, now
under-construction, was delayed by financing. An open house
is planned upon completion of the employee lounge, office, and
production area. Sunny Fresh continues to invest in
Monticello through expansion and upgrading. Additionally,
they continue to work with the City to improve traffic
circulation patterns.
Next month reports by Ken Maus and Jay Morrell.
6. CONSIDERATION TO ACCEPT LETTER OF RESIGNATION FROM IDC MEMBER
DENNIS TAYLOR AND CONSIDERATION OF REPLACEMENT.
Dr. Glenn Nemec made a motion to accept the letter of
resignation from Dennis Taylor. Seconded by Jim Fleming and
with no further discussion, the motion passed unanimously.
Koropchak informed IDC members that Mr. Bob Mosford, a member
of the Economic Development Authority (EDA), expressed
interest in IDC membership. Jim Fleming endorsed Mr. Mosford
as a candidate. Consideration for a replacement was referred
to the Planning (Executive) Subcommittee to review the
existing list of candidates and to make a recommendation at
the next meeting. The committee can also elect not to fill
the position immediately.
7. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Legislative - No report.
b) BRE - Tom Lindquist requested IDC discussion and
consideration to accept $1,000 from Marquette Bank -
Monticello as a contribution for the banquet speaker's
fee . Thi s in exchange for ink on the banquet program and
• Page 4
IDC MINUTES
. JULY 21, 1994
perhaps ticket. John McVay made a motion to accept the
$1,000 contribution from Marquette Bank - Monticello for
exchange of ink on the program and perhaps ticket. Ken
Maus seconded the motion and suggested keeping the
sponsorship low-keyed. With no further discussion, the
motion passed unanimously.
c) Infrastructure - At the August 18 IDC meeting, OSM will
give an overview of the recently completed Transportation
Study and Jeff O'Neill will report on the process of
Comprehensive Plan Update.
d) Education - Shelley Johnson reported a Tech-Prep School
Program is under consideration with local contacts being
made to individuals like Brad Barger and Rusty Demeules.
Technical schools and colleges would also be brought in.
e) Marketing - No report.
8. OTHER BUSINESS:
a) No Chamber meeting in July.
b) Other - Koropchak informed members of the Governor's
Design Team which originally was under the Department of
Trade and Economic Development (TED). With a conflict of
• interest, the team no longer operates under TED and
operates as a separate volunteer organization. The 16-
member team is comprised of various professionals:
Engineers, planners, social workers, economic
development, marketing, etc. They arrive on Thursday
evening, housing is through home-stays, and leave Sunday
morning. The intense two-day brainstorming is attended
by about 50-60 community residents who assess the needs
of the community. Saturday evening a banquet is held and
the team presents its findings and recommendations.
Koropchak reminded members that findings and
recommendations are no good without an implementation
plan, commitment, and a budget to back the plan.
Although physical attributes are evident, the greatest
results to both Becker and Clearwater was the development
of togetherness, positive city/township attitude of
cooperation, and established uniform objectives.
Koropchak stated she was by no means suggesting the City
of Monticello was at the point of smaller communities.
Monticello is a great community with many strengths;
however, she questions if the timing is right to
investigate new ideas, improve what exists, establish
uniform objectives. With the growth of the community,
Page 5
IDC MINUTES
JULY 21, 1994
individuals have expressed the sense of a lack of uniform
community objective. The team fee is $3,000.
Organization, participation, and commitment of the six-
month planning process is key to the success of the two-
day assessment. Involvement consists of the young and
old, all organizations, and city and township residents.
A community application must to submitted six-months
prior to the scheduled weekend event.
The IDC was receptive to the idea based on the
preliminary concept. Suggestion was to contact cities
equal in size to Monticello for results-orientated
program benefits and non-benefits. They did not see the
IDC as the coordinating organization. And further
suggested contacting other organizations and the city for
input prior to considering a presentation by a team-
member.
9. ADJOURNMENT.
The IDC meeting adjourned at 8:55 a.m.
•
QQ~-Q.~ ~, C~ ~GL~
Ollie Koropchak, IDC Executive Director
• Page 6
• IDC AGENDA
AUGUST 18. 1994
4. Consideration of Prospect Updates:
a) Fay-Mar Metal Fabricators, Inc. - Statutory procedures
for establishment of the TIF District has been completed
and the Private Redevelopment Contract executed. Upon
SBA authorization and compliance of the Private
Redevelopment Contract, the bank will close on the
construction financing and the HRA will convey title.
Final building and site plan review is scheduled for
August 25 with ground breaking between October 1 and
November 1.
b) Steinwall, Inc. - In a conversation with Maureen
Steinwall, Steinwall said she passed on the "good deal"
in Big Lake as she was not ready to split the company's
operaton and their existing lease does not expire until
December '95. With the reorganization of the company and
management cutbacks, Maureen now works closer with the
floor (hands-on). Monticello remains a possibility;
-.- however, she expressed her disappoinment with the loss of
three employees to the Aroplax Corporation.
c) Micro-Tech - This company which specializes in canal aids
contacted Monticello sometime ago. In recent discussions
• with a company official who resides in St. Cloud, the
company is again looking for leaseable office space
(2, 000 to 2, 500 sq ft for 14 employees) . The hearing aid
production facility is located in Eden Prairie and the
telephone sales in St. Cloud. The company would like to
shorten the distance between the two and long-range
perhaps have one facility (25, 000-30, 000 sq ft) . Because
the majority of their employees are specialists such as
shell techs, etc., it is difficult to find employment
outside the metro area. Wages are above average. Total
employment is 65-70. In a survey of their employees, a
small percentage would consider Faribault or Wisconsin;
however, the greatest majority would consider
Albertville. He has looked at Tom Brion's facility and
is considering the mall. Because EAS metro-phone hookup
completion is expected to be in about 12 months, he was
interested in assistance for the installation of the
short-term necessary metro-lines. He must meet his
objectives: the need to be within EAS metro calling
exchange and comparative rental costs.
d) Phoenix Solutions - Unable to reach the corporate
president, I spoke with Bob Schanlon. Mr. Schanlon
states that currently the president is in Japan, the
company has not sold their existing facility, and have
expressed interest in the St. Cloud, Le Sueur, and
.
"' Monticello areas. High-tech company, 8,000 sq ft.
Page 1
• IDC AGENDA
AUGUST 18. 1994
e) Miley Gjertsen - This company in the lawn irrigation
equipment and installation business is looking to
relocate. Albertville, Rogers area considerations and
some interest in the city lots. 8,700 sq ft metal
facility. Must be out of existing facility December 3.
f) John Holman - Continues to work with an existing
Monticello business regarding to refrigeration storage
needs.
g) Plastic injection molder - Looking for existing 40,000-
60,000 sq ft (60-70 jobs). Office in Maple Grove with
small manufacturing in Golden Valley and Aberdeen, SD.
The owner will give further site direction the end of
September. North Dakota has become a player.
h) Jack Blaydes - This food company produces beverage mixes,
soft services, and ice cream toppings. Currently located
in Anoka and Chaska, the company was initially looking
for 6,000 sq ft. 5-7 jobs. He has contacted Charlie
Pheffer regarding their facility and has shown interest.
Since that time, Mr. Blaydes has been hospitalized.
i) Quality Welding - Site selection for the approximate
10,000 sq ft facility has been delayed as Mr. Johnson
purchased another business therebye bringing in a new
j) partner. Site selection will proceed in September.
Joe Stecklic - Contact was initial stage of research for
a start-up business for production of specialized large
machinery which relates to his existing business in St.
Cloud. Existing business is AVU. Wants 15,000-40,000 sq
ft, 6-7 immediate jobs. Looking for business planning
direction to secure financing.
BRE Report:
c) Others -
H-Window - The city has received a call from the
Department of Trade and Economic Development Office that
the Board awarded the $250,000 CDBG to the City of
Monticello for a loan to the H-Window. I anticipate
receiving the award letter this week and to consider
compliance of terms and conditions. The equipment loan
to the H-Window is for ten years at a prorated interest
rate of 0~ to 5~. The city retains the full principal
and interest payback for the GMEF.
Aroplax Corporation - Aroplax has expended and received
payment from the $170,000 SCERG. Job creation has
surpassed projections and loan paybacks are current. The
City retains the first $100,000 principal and interest
payback for the GMEF.
r~
Page 2
•
IDC AGENDA
AUGUST 18. 1994
Standard Iron & Iron Works. Inc. - Wright County will
receive the $250,000 SCERG check and reimburse Standard
Iron on August 25. The county will retain the first
$100,000 of principal and interest payback for the
anticipated county partnership revolving loan fund. Loan
paybacks are current.
Custom CdnOAV, Inc. - See enclosed letter.
Sunnv Fresh Foods, Inc. - Have you noticed the new
exterior face-lift to the existing production area.
Remmele Engineering, Inc. - AEGIS "Excellent Award".
Don't forget, if you see these company officials or
employees to Qive them a wor8 of thanks, appreciation, or
congratulations.
•
r~
Page 3
August 15, 1994
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Stephen P. Birkeland, Jr. and
Joan M. Birkeland
Custom Canopy, Inc.
219 Dundas Road
Monticello, MN 55362
Dear Mr. and Mrs. Birkeland, Jr.:
The Monticello Housing and Redevelopment Authority (HRA)
thanks you for your investment into the City of
Monticello. It is our hope that Custom Canopy and your
industrial neighbors take pride in their investment by
helping to maintain an aesthetical and quality industrial
park; therebye, protecting one's investment.
As per the HRA letter dated March 8, 1994, the HRA
extended the time for completion of the non screen-fenced
area and gate to July 1, 1994. With the non-completion
of the non screen-fenced area and gate, the HRA did not
approve the Certificate of Completion.
It is with regret, we must inform you that the HRA has
determined the Birkeland's in default of the Private
Redevelopment Contract. Therefore, the Birkelands shall
receive no annual TIF payment from the HRA.
• Page 1
MONTICELLO
Stephen and Joan Birkeland, Jr.
August 15, 1994
If you have any questions, we'd be happy to sit down and
discuss the matter with you.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Al L son
HRA Chairperson
Ollie Koropchak
HRA Executive Director
cc: Pat Dwyer, Bank of Elk River
Jeff O'Neill, Zoning Administrator
Gary Anderson, Building Official
• TIF District No. 1-15 File
• Page 2
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250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Mr. Dennis Taylor
Taylor Land Surveyor, Inc.
219 West Broadway
• P.O. Box 179
Monticello, MN 55362
Dear Dennis:
August 10, 1994
Upon receipt of your letter of resignation as member of the
Industrial Development Committee (IDC), the membership accepted
your resignation at their July meeting.
We express our most sincere thanks for your years of service in the
area of industrial recruitment and retention/expansion promotion.
We hope you will continue to support our efforts and we welcome
your continued input.
Again, many thanks.
Sincerely,
CITY OF MONTICELLO
a~ \~ mo ~-~ ~--
Ollie Koropchak
IDC Executive Director
r ~
LJ
MONTICELLO
r_
~.
MONTICELLO
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Mr. Scott Laugen,
Marquette Bank -
106 Pine Street
P.O. Box 729
President
Monticello
Monticello, MN 55362
Dear Mr. Laugen:
August 12, 1994
On behalf of the Monticello Industrial Development Committee (IDC),
I would like to express our sincere thanks to Marquette Bank -
Monticello for your proposed contribution to the Industrial
Fundraiser Banquet. Additionally, we appreciate your support and
endorsement of the IDC's economic development efforts in and for
the City of Monticello.
The $1,000 contribution will offset Mr. Charlie Hermann's fee as
guest speaker at the banquet scheduled for Tuesday, October 25,
1994. Charlie is a known motivation speaker who recently retired
as Vice President of Corporate Sales Development for Jostens.
Prior to design and printing of the banquet program and/or ticket,
I will contact you for proper recognition of Marquette's
contribution.
Again, thank you for your contribution.
Sincerely,
CITY OF MONTICELLO
Ollie Koropchak
Economic Development Director
• cc: IDC File
T R E N D L I N E S
Minnesota as far as the Small
Business Administration is con-
cerned. Minnesota's district office of the
U.S. Small Business Administration ranked
first in the nation for approving develop-
ment-company loans for fiscal year 1993.
Development-company loans differ from
typical SBA loans in that development-
company loans are for real estate, equip-
ment and buildings only. Many businesses
use the loans to buy land and buildings for
expansion and then use the equity in those
properties to secure operating loans.
The Minneapolis SBA office approved 135
such loans to Minnesota-based small busi-
nesses, beating second-place Salt Lake City,
which made 120 loans. Minnesota loans are
up significantly from just 86 in 1992.
Loan volume was highest in Minnesota
a whole as well, with the district office
pproving $45.9 million in loans. San
Francisco was second with $34 million.
"There's a great interest in this kind of
lending from the certified development
companies themselves," says George
Saumweber, a spokesperson for the
Minneapolis SBA office. "We're not the
largest state, so this is phenomenal."
Eight local development companies
throughout the state originate the loans.
"Their motivation is to have businesses
start in their area or expand," Saumweber
explains. He says 1993 marks the first
time Minnesota has beat out perennial
leader Salt Lake City and Utah.
Bob Alexander, executive director of
the Minnesota Business Finance
Development Co. in St. Cloud, says the
rise in loan activity is based on develop-
ment companies aggressively marketing
the loans, coupled with a strong demand
for financing from businesses. The St.
Cloud-based group covers an area from
Duluth to Moorhead and expects to do
about 50 loans this year, as compared to
24 last year, Alexander says.
The group has helped finance compa-
nies ranging from Kentucky Fried Chicken
franchises and small-town grocery stores
to manufacturing fines and resorts.
"It's just helping an enormous amount
of small businesses who can't get financ-
ing otherwise," Alexander says. "[t boosts
employment. We've seen manufacturing
companies put together i
manufacturing compan' s in Monticello,
convenience stores in Ga
A loan awarded in early 1994 had a
fixed interest rate of 6.85 percent for 20
years. Once issued, the loans are sold as
investments to investors and are guaran-
teed by the Small Business Administration.
The loans help businesses acquire bank
financing, Alexander says. The develop-
ment companies take a 40 percent position
in the expansion project and still allow the
commercial lenders to take the first mort-
gage position.
Banks like working with the development
companies because the development compa-
ny loans take away some of the bank's risk.
Alexander's group has a $27 million
portfolio with 132 loans. He says part of
the reason for Minnesota's success in the
loan program is the Minneapolis office of
the Small Business Administration.
"We can see why they're number one in
the nation," he says. "They take an aggres-
sive viewpoint to do these loans."
Numbers c>r,f j`~rime consumers" will drop in
to a recent report by state agency Minnesota P Wing, the basic two-income, two-car,
•en consumer unit will diminish by five ent during the next decade.
The report prof is what will happen to hour ds in Minnesota through the year 2020. It predicts that
"married-couple- ~th-children" house ds will decline to about 445,000 by the year 2005. Those
numbers mean that b finesses tha ell housewares, toys and even education, will face declining mar-
kets as a result.
While the decline among this group will occur slat i some individual counties should see strong growth in the family-with-
children consumer group. For instance, Dakota Cou s familie ith-children numbers should grow nearly seven percent, the report
estimates. Conversely, Hennepin County is ex ed to show an i ci'e~se in the number of single households in which the resident is
ore than 65 years old. \.
[n the state's regional centers, th tlook shows varying decrees of decline for the high-consuming married-couple-with-children
households. In the next 10 years; married couples with children will decline 10 j3e,rcenC in the Mankato area, decline just slightly in the
Rochester area, decline slightly in the St. Cloud area and decline nearly 12 percent in the Duluth area.
Minnesota leads nation
in small-business
d_..~~'~ ~ ~~ ~~
mall business is big business in ~
coming years
Minnesota Ventures July /August 1994 11
r~
~~
MINNESOTA BUSINESS FINANCE, INC.
"LOAN RECAP"
Servicing Loan Portfolio -July 1, 1994
136 Loans Total = $27,768,062.86
Loans in Process (not in Portfolio)
44 Loans Total = S 17, 918, 500.00
Loans Approved (FY '94 Ending June 30, 1994
By MBFI Board
46 Loans Total
Total Project =
By SBA
33 Loans Total
Total Project =
_ $17, 432, 500.00
$49,826,000.00
= S 12, 225, 000.00
532,919,000.00
•
MINNESOTA BUSINESS FINANCE, INC.
LOANS APPROVED BY
I~ MBFI BOARD FOR FY'94
~ TOTAL-46
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• IDC AGENDA
AUGUST 18, 1994
b) Planning (Executive) - Kevin Doty
John McVay, Kevin Doty, Ron Hoglund, and Koropchak met on
August 12.
Consideration to fill IDC position vacated by Dennis Tavlor.
At the January 20, 1994, IDC meeting, Jim Fleming and Bill
Tapper were elected to the IDC replacing Dave Peterson and Bud
Schrupp. At the same meeting, the IDC elected not to replace
the seat vacated by Linda Mielke.
In April, Brad Fyle was appointed Mayor filling the seat
vacated by Ken Maus. To provide direct linkage between the
IDC and Council, the Mayor has more or less been considered a
standing-position.
To keep things official, the subcommittee request
consideration of the following recommendations:
1. A motion to elect Ken Maus to fill the IDC seat vacated
by Linda Mielke.
i After reviewing the various professions of the existing IDC
members, the membership size of the IDC, the list of
candidates, the unknowns of City Council seats, and the un-
resolved planning issues; the subcommittee request
consideraation of the following recommendation for approval:
1. A motion to not fill the IDC seat vacated by Dennis
Taylor at this time.
CONSIDERATION OF MONTICELLO'S AVAILABLE LABOR POOL.
From Remmele, Standard Iron, and Aroplax, IDC members have
been approached with the increased difficulty of filling
industrial jobs. Also, noted was the increase of employment
ads.
Additionally, the St. Cloud MSA area for nonfarm payroll jobs
is the leader of metropolitan areas in growth rate, with a
rate of 3% over the year.
July issue, May data, Wright County's unemployment rate is
2.9%, last year 3.9% Sherburne and Stearns County is 2.8%
The planning group identified Monticello's best asset for
• future employment as our youth and the following
recommendations were made:
• IDC AGENDA
AUGUST 18, 1994
1. John McVay talk to Supt. Sheldon Johnson.
2. The potential of the IDC be the catalyst to initiate
school counselors, industrial arts instructors, or
whomever to connect with the industrial leaders for
student tours of Monticello's industrial companies.
Students need to see first-hand the job opportunities
within our industrial base therebye spurring interest.
3. The IDC could consider contributing monies for student
busing if the City agrees to pickup a greater portion of
the Economic Development Director's salary.
4. The need to get Technical Schools more visible and
involved within Monticello was also discussed.
•
• IDC AGENDA
AUGUST 18, 1994
c) Infrastructure - Harvey Kendall
The Infrastructure Subcommittee met on August 16 with Harvey
Kendall, Ken Maus, Jerry Schoen, Jeff O'Neill, John Simola,
and Koropchak present. Absent were Rusty Demeules and Jay
Morrell.
Monticello's residential growth in terms of housing
development:
1990 - 20 homes
1992 - 50 homes
1993 - 73 homes
1994 - 80 homes (projected)
330 residential lots on the drawing board for 1995-96.
1. CONSIDERATION OF THE BUILDING PERMIT FEE SURVEY FOR
CONSIDERATION TO AMEND MONTICELLO'S FEES.
The Infrastructure Subcommittee reviewed the fee survey for
recommendation to the IDC prior to City Council consideration
on August 22, 1994. SINCE, staff has removed this item from
the August 22 agenda and it will be placed on a later agenda.
Jeff O'Neill reviewed the building permit fee survey stating
information included was from a survey completed in 1992 by
Paul Waldon Associates. The study for single family
residential was based on building permits of homes valued at
$92,000. Overall, Monticello appears much lower than other
surrounding communities.
PLAN REVIEW
In the past, building permit fees were a break-even
revenue/expenditure for the city. Due to development
pressures and the need for additional help in the building
inspection department and for the city to remain competitive,
the subcommittee recommended an increase of $200 or a $254
fee.
It was the subcommittee's understanding, this applied to
residential development only and that commerical/industrial
(c/i) is based on the 1985 State's Uniform Building Code Fee
Structure.
No recommendations were made for the inspection fee or
surcharge.
• IDC AGENDA
AUGUST 18, 1994
2. CONSIDERATION OF PROGRESS REPORT ON THE MONTICELLO WASTEWATER
TREATMENT PLANT STUDY.
Completion of the Wastewater Treatment Plant Study is expected
this fall. Results of the study will determine estimated
costs and alternative options. Public Works Director John
Simola hopes to see figures in the area of five million or
less for expansion of the current facility which would occur
within the next 5-6 years with a life expectancy of 20 years.
Or figures in the area of eleven million for a second plant.
Water and sewer usage rates are utilized for operational costs
only. Water and sewer hookup fees are for ongoing replacement
and renovation costs.
WATER HOORIIP FEES
With no major capital improvements planned for the water
system, the residential and c/i water hookup fee is
recommended by the subcommittee to remain at $300.
SEWER HOORIIP FEES
It was recommended to increase the residential sewer hookup
fee by $900 or to $1,200 in order to capture a larger share of
the funds necessary to fund the wastewater treatment plant
expansion. It is estimated that this increase will generate
about $450,000 over 6 years if homes are built at a rate of 83
homes per year.
* It was not discussed as to the what impact this would have
on c/i developments. The base rate for establishment of the
c/i sewer hookup fee is $300. Rick Wolfsteller will be
present at the IDC meeting to clarify the impact to c/i
development.
In the 1993 Economic Work Plan, it was recommended that the
City Council consider setting a levy for the future upgrade of
the wastewater treatment plant. The Infrastructure
Subcommittee recommends reinstatement of this recommendation.
Other sources of funds for consideration of the wastewater
treatment plant expansion is a referendum or bonding.
STORM SEWER ACCESS
The City of Monticello currently does not have a storm sewer
access fee but has been considering development a policy for
• capturing funds from new development to pay for trunk storm
sewer. As part of this policy, the subcommittee recommended
• IDC AGENDA
AUGUST 18, 1994
a minimum of $100 to be charged. The amount would vary
depending of the design of the housing subdivision in which
the development was located. Housing subdivisions that have
obtained storm water credits by storing significant amounts of
water on site from outside of the subdivision would pay a
lesser amount than those who might pay a full $600 fee. Staff
recommends a fee of $100 to $600.
The other alternative was to create a storm sewer access
charge of $1,500 per acre at the time of housing development
for a future downsteam system. The cost per acre would be
adjustable depending on the design of the storm sewer system.
* Question: How does this apply to c/i development? A storm
sewer access charge of greater than $1,500 per acre and based
on the amount of water discharged into the storm sewer system
is being suggested by city staff for c/i development. Again,
Mr. Wolfsteller will be present to clarify this matter.
No other recommendations to the building permit fee survey
were made.
• SUI~lARY OF SUBCOMMITTEE'S RECOMMENDATIONS FOR IDC APPROVAL
PRIOR TO NEW INFORMATION:
1. Recommends a general rate adjustment for Monticello to
remain competitive with communities of equal size, or:
Recommends an increase of the plan review by $200 and
sewer hookup fee by $900 (did not consider impact to
c/i). Recommends storm sewer access charge of a $100
minimum (did not consider impact to c/i).
Recommendations made with the understanding that c/i
development is not impacted by the plan review increase.
2. Recommends the City Council consider setting a levy for
the future upgrade of the waste water treatment plant.
The initial recommendation by the subcommittee may no longer
be valid after new information regarding the c/i impacts.
3. CONSIDERATION TO REVIEW THE STATUS OF THE CITY'S ZONING
ORDINANCE ALLOWING POLE BARNS (METAL BUILDINGS).
The subcommittee recommended the defining and establishing of
a sufficient fortified footing design standard for I-1, I-2,
and BC Zones. This for recommendation at the Planning
. Commission in October.
IDC AGENDA
AUGUST 18, 1994
Exterior metal buildings are allowable in the I-1 and I-2
Zones. Through the use of TIF, the HRA encourages brick-
facing.
RECO~ENDATION FOR IDC APPROVAL:
1. Recommends the Planning Commission define and establish
a sufficient fortified footing design standard for I-1,
I-2, and BC Zones.
4. CONSIDERATION OF A PROGRESS REPORT ON THE MONICELLO
COMPREHENSIVE PLAN UPDATE.
It is anticipated that the process for gathering public input
necessary for preparation of the first draft of the
Comprehensive Plan will be determined after the first of
January. Adoption of the Comprehensive Plan takes a 4/5
Council vote.
Jeff O'Neill reported that staff was gathering information and
data. Additionally, he would like input regarding the
continued use of the current city planner, Northwest
Associates, Inc. The subcommittee suggested that the problem
may have been with an individual and not with the firm. For
the purpose of continuity and consistency, the subcommittee
suggested perhaps the use of another consultant within the
same firm. The issue is open for further discussion by the
IDC.
OPEN FOR FIIRTHER DISCIISSION AND INPIIT FOR CITY STAFF.
5. CONSIDERATION OF A PROGRESS REPORT ON THE DEVELOPMENT OF THE
KLEIN AND EMMERICH PROPERTIES.
City Staff received the preliminary subdivision plat for the
Klein property on Tuesday afternoon. Staff will review the
plat on August 30. The Planning Commission public hearing is
scheduled for September 6 and for approval by the Council on
September 12.
City Council must approval the Klein property zoning from
agricultural to multi-residential and residential after
annexation. Zoning approval requires a 4/5 Council vote.
6. OTHER BUSINESS.
Jeff O'Neill requested the subcommittee consider endorsement
of a request for the City of Monticello to participate in a
. Wright County Transportation Study for freeway interchange and
associated land uses. The Monticello Transporation Study
IDC AGENDA
AUGUST 18, 1994
concentrates within the city limits. Monticello's cost is
$3,000. The subcommittee recommends Monticello's
participation at $3,000.
RECON~iENDATION FOR IDC APPROVAL:
1. Recommends Monticello's participation in the Wright
County Transporation Study at a cost not-to-exceed
$3,000.
i
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AGENDA
aUST 18, 1994
Legislative - Ollie Koropchak
1. Tuesday, September 13 - Primary Election - Encourage you
to get out and vote.
2. It is being planned that the Chamber/IDC Legislative
Subcommittee and League of Women Voters will host a joint
"Meet the Candidates Form". Date will be after the
primary probably late September or early October.
Mayor seat, two-year term.
Three City Council seats, two four-year terms and one
two-year term.
State Senate seat, two-year term.
State Representative seat, two-year term.
County Commission seat, four-year term.
Filing for mayor and city council opens August 30 and
runs through September 13.
3. Tuesday, November 8 - General Election - Encourage you to
get out and vote.