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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 • W v! W a Z J_ m W J m O O W W ~ ~ O K ~ N c~ ti W ,o W ~ J ] Z ~ ~ - ~ m s U 1 u o 0 0 co L r Z ~ ~ Q ~_ L J N C CD ~ ~ W C ,' LL. 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Eli EA r ~ :_. ~ ~ o ~ ~ U ~ U O C O d N ~ m ~ LL u- C U i ~ a ~ 3 ~ o a~ ~ ~ ~ F- J ~ t ~ ~ °' 3 ~ E Z E ~ ~ a t C c0 ~ t0 ~ O N O > > N O W .-.. a cn 3 ~ cn H ~ cn a ~ w o O ~ U N t .n N .~ N L fIf Q a~ .` Q ^^~ .L W ~ N ~a U N ~ Z ~ ~ ~ o ~ Z to O N 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 $49,826,000.00 = S 12, 225, 000.00 532,919,000.00 • MINNESOTA BUSINESS FINANCE, INC. LOANS APPROVED BY I~ MBFI BOARD FOR FY'94 ~ TOTAL-46 o ~ ~t IQTI'SON ' ROS~~U ~~`' OF THE I WOODS MARSHALL V P~'YN1NG i ON ICOOCfiI~mY(3 RED LAi~c ~ Q COOK i POLT{ -' BELTi2A14Q L NORMAN ~iAHNO~tE*f C 1~ I`~ ~ LT?+SCA o caSs ST Lov1S BECC:2 ~ COY z C < (1. yYJ Z ~ CARLTON x CzOw ATi'~"t 3 OT; d.Z TAII. ANC' D,IIL,L D ~~ J P~ Uf GRANT DOUGLAS TODD MORRISON ® Y < B~iY z STcYE`lS Z C O BiG POPE SF~ ISANi'I S'PONE St"c4RPIS 1~! ,~(OIZ~+ C SwiF'1' ~,. 6 S- C Lt C ~ ~PEwA ~ s C Q~ r ~ wR1G' RV ~ t PA RLE ~ RE'~/n t ~ VtC•..EOD ARVEQ Y T ? Ow titED1C^"V'E SCOTT' DAKOTA - Z SIDLEY c 2 RFT-~wOOD MCOLL~i C$ Q L~'ON SUE ~~ G WABASHA tiiURRAY BROWN ,~ t _ ~.• G - G WATONWAN = s ~ ~ C • P1:'S'i O:YE COT'i'OIYWOOD .. y N G OLMSTFD WRYONA r•AR~AUu ROCK ~tnar ~e 1AC'~CSON lupRTBY FREEBORN MOWER F1LLJ~tORE HOUSTON • 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 • w ~ ac°o ~ rn ~ oo ~ ~ o ~ ~ ch ~ ~ ~ ~ ~ ' ~ r ` ~ N ~ ({~ 69 ~ ~ ~ ~ ~ N Q ~ O ~ N l~ ~ O O O O N ~ M ~ (A EH Ef? ~ ~. O U f~ 0 v O ° ~ ~ O ~ ~~~ d a 0 0 ~ o N ~ G M C ~ ~ ~ ~ .. 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Q ~ O ~ ~ = Q O = ~ $ « ~ f03 ~ O m J ~ ~ L a~ a~ °~ ~ Z E v U a w ~¢ ~ c co E .. .- ~ ~ 3 O _~ n a~ ~ a~ w W ~ } ~ O g c d cn cA cA . c4 F- U- H O ~ ~ O T ~ ~ ~ o ~_ U N e» Q N M O C ~ N N O ~ ~ . ~0 c ~ ` T T f 1 ~+ /~^~ y Q U • ~ ~ U L a D cD ~ ~ ~ a~°i N ~, ~ a O ~ U Q °' ~° ' ~ ~ ~ ~~ O :- Q O ~ cn . E ~, ~ ~ Z ~Q ~. ~ Zfn ~ ~ Q N 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.