IDC Agenda 06-16-1994AGENDA
i MONTICELLO INDUSTRIAL DEVELOMENT COMMITTEE
! Thursday, June 16, 1994 - 7:30 a.m.
City Hall
MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty,
Treasurer Ron Hoglund, Mayor Brad Fyle, Shelley Johnson,
Arve Grimsmo, Dan Smith, Harvey Kendall, Jay Morrell, Ken
Maus, Dennis Taylor, Tom Lindquist, Merrlyn Seefeldt,
Steven Lemme, Dr. Glenn Nemec, Cyndie Johnson, Bill
Tapper, and Jim Fleming.
STAFF: Pick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE MAY 19, 1994 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Polycast MFG, Inc.
b) Steinwall, Inc.
c) Fay-Mar Metal Fabricators, Inc.
d) Stamping-chart & long run dies company
e) National trucking firm
•
f) Plastic injection molder
g) Production of ice cream cakes
h) Monticello/Cookstown (July IDC meeting) - Don Smith
BRE REPORTS:
a) John McVay - Standard Iron & Wire Works, Inc.
b) Shelley Johnson - Hoglund Bus Company and Hoglund
Transportation Company.
c) Dennis Taylor - Bondhus Corporation.
d) July BRE Reports - Harvey Kendall, NSP Power Plant and
Training Center. Don Smith, Sunny Fresh Foods.
e) Others.
5. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Legislative - Cyndie Johnson.
b) BRE - Tom Lindquist (Banquet speaker).
c) Infrastructure - Dennis Taylor.
d) Education - Shelley Johnson.
e) Marketing - Kevin Doty.
f) EAS - Ollie Koropchak.
6. CONSIDERATION TO BEGIN BRAINSTORMING FOR THE IDENTIFICATION OF
THE IDC MISSION STATEMENT OR FOCUS.
7. OTHER BUSINESS.
8. ADJOURNMENT.
MINUTES
. MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, May 19, 1994 - 7:30 a.m.
City Hall
MEMBERS PRESEPIT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Treasurer Ron Hoglund, Shelley Johnson,
Arve Grimsmo, Dan Smith, Harvey Kendall, Jay
Morrell, Ken Maus, Tom Lindquist, Merrlyn
Seefeldt, Dr. Glenn Nemec, Cyndie Johnson, and
Jim Fleming.
MEMBERS ABSENT: Dennis Taylor, Steven Lemme, and Bill Tapper.
STAFF PRESENT: Riek Wolfst~ller and Ollie Koropchak.
STAFF ABSENT: Jeff O'Neill.
1. CALL TO ORDER.
Txs4 IDC meeting was called to order by Chairperson McVay at
7:30 a.tn.
2. CONSIDERATION TO APPROVE THE MARCH 17 AND 31, 1994 IDC
MINUTES.
Cyndie Johnson made a motion to approve the March 17 and 31,
1994 IDC minutes. Seconded by Jim Fleming and with no
corrections or additions, the minutes were approved as
written.
3. CONSIDF.F:ATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
Treasurer Haglund reported a monthly balance of $1,244.54 at
Marquette Bank and a monthly balance of $3,858.91 at
Metropolitan Federal for a total balance of $5,104.55. This
included the BRE Breakfast disbursement to Riverwood Metro
Business Resort of $372.06. Fifty people attended the
breakfast. Arve Grimsmo made a motion to accept the monthly
IDC financial report as given. Harvey Kendall seconded the
matian and with no corrections or additions, the financial
report was accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
In addition to the written prospect update, Koropchak noted no
Monticello site cammittments have been received; however, the
list includes some quality companies with serious intentions
for relocation-expansion decisions. Harvey Kendall, Jim
Fleming, Kevin Doty, Ron Hoglund, and John McVay volunteered
. Page 1
IDC MINUTES
MAY 19, 1994
to visit Fay-Mar Metal Fabricators and the stamping-short and
Lang run die company within the week.
Kevin Doty reported due to a change in the floor plan by the
r4developer of Polycast Mfg. Inc., completion of the building
appraisal was delayed.
Don Smith reported on his recent trip to Dungannon, Northern
Ir`land. Since the group's original trip last October, a
series of pen pal exchanges have developed between students
and an expressed interest by the Dungannon District Council to
explore ar identify Monticello industries interested in
foreign investments or markets. Due to some difficult times
within the Dungannon Rotary and with no identified hot
Montic27.lo industrial prospects, the connection will continue
with the Cookstown District Council. A July business/family
trip to the US and Monticello is in its initial planning stage
under the direction of Mr. Jim Eastwood of Coakstawn. The IDC
may wish to focus and invite the Cookstown delegation to their
July 21 meeting and coordinate same Monticello industrial
tours. Arve U`rimsmo foresees a future in the European market
and the need to establish a "foot in the door" relationship
• while the opportunity exists. Both, Don and Arve agreed that
the fruits of the initial trip were the friendships and
connections established in Cookstown.
BRE REPORTS:
Jay Morrell reported on Lintex Corporation stating the company
has a three--year lease of 14,000 sq ft within his
Fallon/Dundas facility. The company headquarters are located
at UYiiversity and Hwy 280 in the metro, this division employs
20 individuals who sew hospital supplies. They appear
f1YlaY1lCally sound, are excellent tenants, and are managed by
Craig and Jamey Merkel of Buffalo.
Jahn McVay will report on Standard Iron next month. Koropchak
reported company officials expect the SBA debentures for the
real estate portion to be sold in June and far the State,
regional, and local loans far equipment financing to close
June 1.
Ran Hoglund reported on the Tire Service Equipment Company
stating Ray Schmidt foresees the potential to expand the
facility in 1995 by 8,000 sq ft to the north. Sales have
increased 28% with local employment at 10. The sales office
resides in Phoenix. Overall is happy with his location and
his main concerns being worker's compensation and product
liability. S~=condly, Ron reported on Decorative Services with
• Page 2
IDC MINi1TES
• MAY 19, 1994
increased sales of 30% due to new accounts. The 35 employees
sew commercial drapery and Jerry Andrusko hopes to construct
a facility in September, 1995. His biggest concern is
worker's compensation.
Dan Smith reported on the Sunny Fresh groundbreaking for
expansion of the kitchen production/employee lounge areas.
Speaking at this event was one of Ken Maus' last official duty
as Mayor of Monticello.
5. CONSIDERATION TO DISCUSS AND ASSESS ALTERNATE OPTIONS FOR
FUTURE INDUSTRIAL SITES.
With tree Planning Commission and City Council approvals to
zone the Klzin property R-1 and R-3, Chairperson McVay asked
the question, "Where next for an industrial site?" The
committee was advised of the increased a:~king price ($55,000,
$SO,000, and $25,000 per acre) for industrial land in the
Commerce C2Ilter and along the East 7 Street areas. Arve
Grimsmo expressed as property seller to the US Postal Service
a few years ago, he was satisfied with his receipt of $14,000
per acre. It was noted direct access to major roads as a key
• factor for industries. With the recommendation by the
Planning Commission and Council to update the Comprehensive
Plan, Koropchak inquired of staff's progress with the update.
Rick Wolfsteller responded that the monies were in the '94
budget for the Comprehensive Plan update. IDC members briefly
discussed the following options: 120 acres owned by Ray
Fullmer, northwest of Gould's along Orchard Road (7---tan road)
or 60 acres owned by the City along south Highway 25, north of
thz Kj211b2rg's west mobile park. The IUC referred the topic
to the Infrastructure Subcommittee.
6. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Legislative - Cyndie Johnson reported the minimum wage bill
was vetoed, the phased-in capitalized replacement equipment
tax bill passed, and the workers compensation bill died in
committee.
b) BRE - Tom Lindquist reported that Dean Bill Monson of St.
Thomas spoke to the subcommittee regarding his role in
establishing a President's Club. His approach, an action
learning team approach, is generative learning from one
another through the means of real issues and motivation.
Utilizing outside resources as speakers and books for self-
preparation and open-ended questions. Dean Munson is a friend
of Bill Tapper. Chairperson McVay reported an attempt to form
a President's Club in St. Cloud failed.
c) Infrastructure - None.
Page 3
IDC MINIJTES
MAX 19, 1994
d) Marketing - Kevin Daty reported the subcommittee met on
March 22 and April 4 with each :subcommittee member assigned to
update information ors brochure pages and data sheets. The
update cost should be substantially less than the initial City
cast of $22,000 through the use of inhause computers and
vol~a.nteers. Upon completion of the brochure update, the group
will critique the video for necessary updating. A member
asked, "Does the use of the video justify the cost to update?"
Also, Karapchak added Manticello's Community Profile vaas
updated and submitted to the Dept of TED for printing. The
somewhat new format includes a map of industrial sites.
e) Education - None.
f) EAS - Cyndie Johnson reported that Joy Swenson and herself
attended a meeting at the Senior Lounge in April and the
subcommittee rnet again May 4. Upon the PUC and other
community's experience with EAS polling, the subcommittee
elected to take the advise given and let "a sleeping dog lie. "
The PUC does one news-release reminder midway through the
palling process.
7. OTHER BUSINESS.
a) See printed enclosure.
. b) Chamber lunch catered by Dina's, today.
c) Other Chairperson McVay summarized the negotiated
alternative power sources to be phased-in by NSP over a time
period which allows immediate continued operation of the
Prairie Island Plant.
8. ADJOURNMENT.
The IDC meeting adjourned at 8:50 a.m.
O~ ~ ~
Ollie Karapchak, Executive Director
Page 4
a
ORGANIZATIONAL REPORTS
Economic Development Partnership of Wright County completed an
Overall Economic Development Flan for Wright County (will assist
Cities and Townships in applying far State and Federal grants and
loans). Approved the "Code of Ethics" for the handling of economic
development inquiries. Next meeting is Thursday, May 26, 9:00 a.m.
iri Clearwater. On June 1, 7:00 p.m. in the Community Raom at the
County Government tenter, Minn DTED will assist communities in
completing the new farms of the Community Profile.
Wright Technical Center Advisory Council completed and submitted
their Youth Apprenticeship Grant application on May 1. Grants are
for the development of apprenticesiZip programs and do not exceed
$100,000 per grant. The Wright Technical Board is committed to
developing a px•ogram with or without the grant.
Quad County Development Network - Community representatives are
from the counties of Benton, Sherburne, Stearns, and 6r'right.
Recently, they have met with representatives from Region 7 East and
Region 5 Development Commissions regarding the useful of the
results of the Minnesota Economic Blueprint process. First, upon
the long hours spend in preparation of the blueprint by each region
and secondly, upon the regional reports being combined by the
State, representatives of the three regions view the development
strategies and priorities specific to each region are either last,
or watered down to an extent they become less meaningful and less
useful for any of the regions involved.
Minnesota Business Finance, Inc. - This newly formed regional SBA
office in St. Cloud replaces the old OMNI which had spme
administrative problems. Quad Networking and St. Cloud Area
Economic Development Partnership were instrumental in getting
Legislators to remove it from governmental rule. The regional
office serves the northern two-third of Minnesota. In order to
better assist our industries and potential commercial businesses
with the SBA loans, I have visited the St. Claud office and met
with Bob Alexander, Executive Director, on two occasions. Through
reference, I was asked and have become a member of MBFI
representing this area.
i
IDC AGENDA
JUNE 16, 1994
4. Consideration of prospect updates:
a) Polycast Mfg, Inc. - We have received financial
commitment from SBA; however, we are awaiting SBA
authorization prior to Bank construction closing ar~d HP.A
land canveyence.
b) Steinwall, Inc. - Although unsuccessful, I've attempted
to reach Maureen an different occasions for an update on
Steinwall's option to purchase the existing FSI building
in Big Lake. I'm aware that Rich Brotherton, plant
manager, is no longer with Steinwall, Inc.
c} Fay--Mar Metal Fabricators, Inc. -- John McVay, Bill
Enders, and myself visited the company's existing
facility in Blaine on May 26. Jack Taly, Operations
Manager, gave us a tour of the production area which is
housed in three small buildings. The company definitely
operates under a lack-of-space constraint as workers duck
to avoid being struck by metals during production and
storage of raw and finished materials are moved from
inside to outside daily. Owner, Ron Musick, is
interested in 3 acres to the east of SMM and plans to
construct a 15,000 sq ft. Upon securing bank commitment
and the HRA receiving an executed Letter of Intent,
$5,000 cashier's check and copy of a land purchase
• agreement; the HRA authorized the creation of a TIF
District No. 1-17. The $555,000 financial package
utilizes the following sources of funds: Bank, SBA, TIF,
and equity. Projected employment of 17 within 2 years.
Ron has toured the SMM facility.
d) Stamping-short & long run dies company - John McVay, Bill
Enders, and myself visited this Blaine company on May 25.
The company appears well-managed by the three hands-
owner/operators and is a company Monticello would be
proud to have. Although Monticello has not been
eliminated from their site location list as Rogers and
others, we felt Monticello had a lukewarm reading.
Reason being the potential loss of their skilled-trained
employees. Monticello's video and the prepared financial
proposal and building/setback site allowances vaere
:submitted to the company. The company plans for a mid-
June site location decision. Proposed 25,000 sq ft
Fabcan building with projection of 50 jabs 6V1th1T1 2
years. The company individuals have toured the Araplax
facility.
e) National trucking firm - The company has elected to
proceed with a site location along 94 in Rogers. Reasons
being the land price is more favorable and the site ..-is
closer to owner's home. The Rogers location is based an
securing a negotiated lease-back agreement.
Page 1
IDC AGENDA
JUNE 1C, 1994
f) Plastic injection molder - The company had spoke with
.. ' ~ ' _ ~. ~ ~ti._.; ~..iu John Jensvold
._.f NSP. Bath reported a real interest in Monticello and
praised Monticello's marketing materials. On .7une 6, I
attempted to make arrangements far the Monticello
Prospect Team to visit the company. The company officer
informed me that the company's Board of Directors were
meeting the next day to make a decision whether to expand
and secondly, to review the 13 preliminary site
locations. On June 8, I was informed that the company
elected to expand and secondly, Monticello was cut along
with 9 other communities from its initial site list.
Reason being the existing company's employment base is
drawn from a 10-mile radius. The population base of
Monticello was not great enough to satisfy the projected
employment without causing jab displacement. This was
disappointing as the company was excellent.
g) Production of ice cream cakes - Looking for an existing
facility of approximately 10,000 sq ft. The company ire
its initial stages of production; expansion linked to
obtaining a contract with Safeway. Information on
Pfeffer's building given and incentives outlined.
BRE REPORTS:
• a) Standard Iron & Wire Works, Inc. - The closing far the
SCERG, CMIF, and the GMEF equipment loans did take place
on June 1; however, an escrow account was established at
Norwest Bank to allow closing prior to delivery and the
30-day acceptance of the equipment. The organi~.ations
agreed to proceed with closing to prevent changing of
dated documents. The equipment closing at the City Hall
took three hours.
e) Other: EDA - The EDA will review the GMEF application
from The H-Window Company for approval of a $50,000
equipment loan. The application became necessary with
the denial of the requested $100,000 Central Minnesota
Initiative Fund loan. Loan denial was based an not
meeting the owner residency requirement of the 14-county
area (foreign company) and was .iot denied because of
financial credibility. The company will inject the
remaining $50,000 gap.
HRA - HRA and City Council members have been invited to
join Hospital Board members to hear faun senior-housing
presentations far congregrate and assisted-living. The
meeting scheduled far June 22 will take place at the
Hospital Board Roam at 6:30 p.m.
• Page 2
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'4. ,
IDC AGENDA
• JUNE 16, 1994
6. Consideration to be in brainstormin fox the identification of
the IDC mission statement or focus.
A. Reference and background:
The IDC is the strength behind the community's industrial
development. In order to maintain that image and your
interest as either a past and new member, the TDC must
periodically review and affirm its focus or mission. Prior to
our meeting, please take a few minutes to review both the past
and present IDC's objectives and organizational structure.
Chairperson McVay sees the focus of the Prospect Team
weakening. Some new members ask, "What's the mission of the
City?" or "What's the mission of the IDC?"
IDC Ob1ective
Initially, the IDC was formed in the early 1970's around the
time Oakwood Industrial Park became a reality. I believe
their main objective was to serve as the hands-on recruitment
team working directly with industrial prospects. As time
evolved, Monticello's industrial base grew and today, the
IDC's objective is two-fold: Prospect recruitment and
• Business Retention & Expansion (BRE).
IDC Structure
This past year the IDC meeting time changed from 7:00 a.m. to
7:30 a.m. and the prospect update is now prepared as part of
the written agenda. Additionally, as the IDC membership grew,
five subcommittees were farmed in hopes of identifying
industrial needs and implementing programs or salutions. Some
subcommittees are meeting regularly and others not at all.
Brainstorming
Be prepared to do some brainstorming to identify the strengths
and weaknesses of the IDC. Part II, what are the identified
or identify the strengths and weaknesses of the City of
Monticello? Part III, begin to identify an IDC's mission
which supports the City of Monticello's mission.
• Page 1
•
115?
Northern States Power Company
Northwest Region
•
May 26, 1994
Ms. Ollie Koropchak
Economic Development Director
City of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
Dear Ms. Koropchak:
3515 3rd Street North
P.O. Box 806
Saint Cloud, Minnesota 56302-0808
Telephone (612) 255-8600
Governor Arne Carlson's signing May 10 of the Prairie Island spent fuel bill capped months of
hard work by our customers, business organizations, our communities and all of us at NSP.
Although the legislative proceedings were exhausting and sometimes contentious, we were
able to achieve our goal.
We could not have done it without the support of communities like yours. Thanks to your
persistence and commitment, the Prairie Island nuclear generating plant will continue to
operate, the many jobs are safe, the economic viability of the region is maintained, and we can
all get on with the business of serving our customers.
Although the bill allows us to continue to generate low-cost baseload electricity from Prairie
Island, several compromise measures have associated costs. These measures include:
• Searching for an alternative site in Goodhue County
• Filing a license application for the site with the Nuclear Regulatory Commission
• Creating a renewable development fund for development of renewable energy sources
• Operating at least 225 megawatts of wind energy by December 1998 and an additional 200
megawatts by December 2002
• Contributing 2 percent of gross operating revenues for conservation.
We currently are evaluating how these measures affect our operating costs. Be assured that
our mission remains to provide Monticello the kind of competitively priced, reliable energy
you've come to expect from NSP.
Sincerely,
~~
Harold Wick
Regional General Manager-NWR
HW:ga
•