IDC Agenda 05-19-1994• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, May 19, 1994 - 7:30 a.m.
City Hall
•
MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty,
Treasurer Ron Hoglund, Shelley Johnson, Arve Grimsmo, Don
Smith, Harvey Kendall, Jay Morrell, Ken Maus, Dennis
Taylor, Tom Lindquist, Merrlyn Seefeldt, Steven Lemme,
Dr. Glenn Nemec, Cyndie Johnson, Bi11 Tapper, and Jim
Fleming.
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2.. CONSIDERATION TO APPROVE THE MARCH 17 AND 31, 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) National trucking firm
e) Stamping-short & long run dies company
f) Metal fabricator of sporting goods
g) Plastic injection molder
h) Plastic injection molder
i) Plastic fabricators & thermoformers
j) National distributor of photo supplies
k) Frozen pretzel dough
1) Quality Welding
m) Electronics firm
n) Monticello/Dungannon - Dan Smith
BRE REPORTS:
a) Jay Morrell - Lintex Corporation
b) John McVay - Standard Iron & Wire Works,
c) Ron Haglund - Tire Service Equipment
Services, Inc.
d) H-Window Company
e) Others
Inc.
and Decorative
5. CONSIDERATION TO DISCUSS AND ASSESS ALTERNATE OPTIONS FOR
Ft1TURE INDUSTRIAL SITES.
6. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Legislative - Koropchak
b) BRE - Tom Lindquist and Bill Tapper
c) Infrastructure - Dennis Taylor
d) Marketing - Kevin Doty
z} Education - Shelley Johnson
f) EAS - Cyndie Johnson
7. OTHER BUSINESS.
a) Economic Development Partnership of Wright County.
Wright Technical Center Youth Apprenticeship Grant
Application.
Quad County Economic Development Networking.
Minnesota Business Finance, Inc.
b) Chamber meeting today, noon, American Legion.
c) Other
8. ADJOURNMENT.
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
• SPECIAL MEETING, MARCH 31, 1994 - 7:30 A.M.
CITY HALL
MEMBERS PRESENT: Chairperson John McVay, Shelley Johnson,
Cyndie Johnson, Bill Tapper, Dennis Taylor,
Merrlyn Seefeldt, Ron Haglund, Ken Maus, Jim
Fleming, Don Smith, and Dr. Glenn Nemc.
MEMBERS ABSENT: Kevin Doty, Tam Lindquist, Steven Lemme, Arve
Grimsmo, Harvey Kendall, and Jay Morrell.
GUEST: Bill Enders.
STAFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff 0' Neill.
THE FOLLOWING RECOMMENDATIONS WERE MADE BY A GENERAL CONSENSUS OF
THE IDC MEMBERSHIP:
1. Recommends the Planning Commission consider endorsing the
initiation of a long-range industrial land use study focusing
on freeway access and transportation circulation. (The IDC
was not convinced the Planner had given much thought to this.)
2. Rcommends the Planning Commission consider endorsing the
rezoning of the Stuart Hoglund property from B-3 to I-1. (To
enhance and preserve sellable industrial land.)
3. Recommends the Planning Commission consider endorsing a buffer
"zone", not just a buffer, between the I-2 Zone and the
proposed R-3 Zone of the Klein property. (The IDC views the
abutting T-2 Zone and R-3 Zone as incompatible.)
4. Recommends the Planning Commission consider endorsing the
continuation of the study for potential freeway interchanges
to the east and west of the Highway 25 Interchange and for the
Fallon Avenue Overpass. (To enchance and preserve a long-
range freeway interchange plan and a north/south connector
route for the City of Monticello.)
. MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March 17, 1994 7.30 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Shelley Johnson, Arve Grimsmo, Don
Smith, Harvey Kendall, Jay Morrell, Ken Maus,
Dennis Taylor, Tom Lindquist, Dr. Glenn Nemec,
Cyndie Johnson, Bill Tapper, and Jim Fleming.
MEMBERS ABSENT: Ron Haglund, Merrilyn Seefeldt, and Steven
Lemme.
STAFF PRESENT: Jeff O'Neill and Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller.
GUEST: Steve Grittman, Northwest Associated
Consultants.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:30 a.m.
2. CONSIDERATION TO APPROVE THE FEBRUARY 17, 1994 IDC MINUTES.
_ Arve Grimsmo made a motion to approve the February 17, 1994
IDC minutes. Bill Tapper seconded the motion 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 $4,207.81 at Metropolitan Federal and
$1,239.90 at Marquette Bank for a total balance of $5,447.71.
Disbursements included the $500 authorized by the IDC to
subsidize the City's $1,5001 membership fee in the Wright
County Economic Development Partnership. Harvey K2nda11 made
a motion to accept the March IDC financial report. Seconded
by Kevin Doty and with no additions or corrections, the
financial report was accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
The IDC accepted Koropchak's written report of prospect and
BRE updates.
Page 1
IDC MINUTES
MARCH 17.1~g4
BRE UPDATES:
Chairperson McVay reported that the City of Becker is on
Advanced Food Sciences first list of communities with viable
sites. Additionally, McVay reported on the NSP Service Center
stating a change in management. Twelve-year NSP employee Jim
Roland was hired as the new regional service representative
replacing the once supervisor position. The new management
style promotes team building.
Kevin Doty reported on FSI, Inc. The company's expansion in
St. Cloud was driven by the available labor pool of college
students (part-time and cheaper wages). Kevin foresees the
company's headquarters to remain in Monticello because the
owner resides locally. The IDC was encouraged to tour the
facility in the future. Mr. Peach and Mr. Lilke are both
~znable to attend the BRE Breakfast as they will be out-of-
town.
~.\
Additionally, Mr. Doty reported on Dahlheimer Distribution,
Inc. The company continues to do very well; however, the
market has changed due to the decrease of beer consumption and
the increase of carbonated or mineral water product
consumption. The company employs 20, owns six delivery
trucks, and has the potential to expand. Due to a conflict
with the IDC banquet date, company officials are unable to
attend; however, they do make a donation.
Dan Smith reported that Sunny Fresh would host a
groundbreaking reception in April or May. Sunny Fresh
continues to upgrade and expand their facility, this
investment into our community includes an employee's break
room and meeting/office/kitchen production space.
Arve Grimsmo reported an the H-Window stating they have
completed construction of the manufacturing area which doubled
its size. Patio door sales are going well.
April BRE reporter is Jay Morrell on Lintex Corporation ar~d
May BRE reporters are John McVay on Standard Iran and Ron
Hoglund on the Tire Service Equipment Company and Decorative
Services, Inc.
5. CONSIDERATION OF SUBCOMMITTEE REPORTS:
In addition to the written subcommitte reports.
a) Legislative - Chairperson McVay informed members that
NSP is stepping slowly as to see what direction the dry
Page 2
IDC MINUTES
• MARCH 17.1994
cask storage bill takes. The House Committee presents
the biggest opposition.
b) BRE - Tom Lindquist reminded members to contact their BRE
business with an invitation to the gratis breakfast at
the Riverwood Metro Business Resort on Thursday, April
21, 7:30 a.m. Koropchak mailed sneak preview date
letters to the industries and stated the name of their
IDC representative.
c) Infrastructure - Dennis Taylor reported on the enclosed
subcommittee's recommendation for the rezoning of the
Kjellberg/Klein property and requested the IDC consider
approval of the recommendation. Jeff O'Neill introduced
Steve Grittman of Northwest Associates who would respond
to IDC questions and announced that the City Council
called a special rezoning workshop for March 30, 6:00
p.m,, place to be determined. Due to the latest
development and with new information to be presented at
the special workshop, Don Smith suggested the IDC table
approval of the subcommittee's recommendation.
Steve Grittman cited zoning has moved away from old
traditions and today encompasses the importance of valued
development. Bill Tapper spoke of the importance of
long--term (40-50 years) versus short-term (1-5 years)
planning as it relates to access to I-94 off Highway 25
and that perhaps the interchange may be too tight to
support residential development with the potential of
industrial growth. Easy and safe access to I-94 is key.
With a hopeful positive EAS polling result, the members
anticipate continued industrial growth beyond the
planner's projections. McVay quzstioned if not the Klein
property, where next? Shelley Johnson suggested the IDC
call a special meeting following the workshop and prior
to April Planning Commission meeting for discussian of
the two key issues: Kjellberg/Klein rezoning and EAS
polling. Harvey Kendall made a motion to table approval
of the subcommittee's recommendation and called for a
special IDC meeting on March 31, 7:30 a.m. The motion
was seconded by Cyndie Johnson and without further
discussion, the motion passed unanimously.
6. OTHER BUSINESS.
a) EAS Polling - Koropchak informed members that the EAS
ballots for exchange 295 would be mailed out April 28 by
M Page 3
IDC MINUTES
MARCH 17.1994
the Minnesota Public Utilities Commission (PUC) and must
be returned by June 13, 1994. To avoid any conflict of
interest, the PUC suggested information calls be directed
to the PUC or Koropchak. Additionally, the PUC reported
other communities have not promoted voting "yes" as this
could stimulate marketing opposition. Arve Grimsmo
suggested the Chamber educate the public on EAS polling,
particular to the senior population. An article in the
City Newsletter highlighted the EAS petition progress
since IDC sponsorship, the proposed rate additives, and
encouraged ballot voting only.
Additional discussion centered on the need for a
subcommittee to plan a promotional strategy and to
develop a promotional funding .source through perhaps the
previous PBX list which was originally coordinated by
Steve Johnson. Arve Grimsmo made a motion to set aside
IDC dollars of not-to-exceed $750, expenditure after
solicitation and expenditure of PBX funds, for EAS
promotion/education. Kevin Doty, IDC Marketing
Subcommittee Chairperson, was authorized the rigYit to
expend the $750 and upon the need for additional IDC
funds must receive approval from Chairperson McVay. The
motion was seconded by Dr. Glenn Nemec and with no
further discussion, the motion passed unanimously. The
subcommittee to be chaired by Steve Johnson will include
Kevin Doty, Cyndie Johnson, Jim Fleming, Koropchak and
other volunteers.
b) Today's Chamber lunch and program will feature an
legislative update on the NSP's dry-cask storage bill.
Noon at the American Legion.
7. ADJOURNMENT.
Harvey Kendall made a motion to adjourn the IDC meeting.
Seconded by Kevin Doty, the meeting adjourned at 9:10 a.m.
Ollie Koropchak, IDC Executive Director
Page 4
• IDC AGENDA
MAY 19, 1994
4. Consideration of Prospect U dates-
a) Polycast Mfg, Inc. - Construction was delayed due to
completion of the appraisal necessary for SBA final
approval. SBA submittal to the Mpls office is
anticipated this week thereafter the bank can complete
construction financing. The HRA's contract with the
Schulz Properties was extended to June 1. The project is
financially strong.
b) Stzinwall, Inc. - Maureen informed me she was quoted an
asking price of $30,000 and $35,000 per acre for the
Monticello Commerce Center property and another source
quoted an additional $1,500 per acre for ponding. The
existing 15,120 sq ft building asking price is $580,000.
Maureen proceeds to check-out the property along East 7
Street in hopes of purchasing property this fall. On May
16, I talked with Maureen about the HRA lot for sale at
$14,000 per acre and she informed me of her strong
interest in the Big Lake FSI building at a purchase price
of $15.00 per sq ft (37,000 sq ft building for $555,000) .
Steinwall's structural engineer is viewing the facility
for adaptd~bility.
c) Fay-Mar Metal Fabricators - 15,000 sq ft building, 17
employees, looking at existing building or 2 acres to
build, fall move, recent purchase of this tube bending
(rails) business. Need three-year historical financials
and business plan, have met with Public Resource Group.
Business-owner Ron Musick is friend of land-owner Shawn
Weinard. Has leased existing facility in Blaine.
d) National trucking firm - Looking for 5 acres
to construct 12,000 sq ft precast concrete building
(3,600 sq ft office/mezzanine and 8,400 sq ft four
service bays.) Freeway exposure, Monticello Commerce or
East 7 Street ($30,000 per acre). Currently 14 office
employee projected to increase by 6-10. Had meeting May
13, parking for 40 trucks and 40 other, ordinance
compliance and willing to execute property housekeeping
covenants. Must begin construction by August 1. Has
buyer on existing building. Property taxes estimated.
e) Stamping-short & long run dies - Met with three company
officials on May 1U. Proposed 25,000-30,000 sq ft Fabcon
production facility. 25 jobs currently, increased by 25
within 2 years. Decision in 30 days. Property taxes
z:~timated.
f) Metal fabricator of sporting goods - Met with individual
rapr~seriting this company. Proposed minimum 150,000 sq
ft building to 250,000 sq ft with 15~ office space. 10
acres. Currently 60 jobs, runs three shifts, light
• Page 1
• IDC AGENDA
MAY 19, 1994
industrial. Decision in mid June, occupancy July 95.
Thirteen year old company recently acquired a out-of-
state company. Property tax estimated.
~) ^l.x:~tic injection molder - Lead from Brad Barger.
Proposed 30,000 to 60,000 sq ft expansion, 10% office.
100-150 employment within 2-5 years. Now has 260
employment. Initial stage of planning. Property tax
estimated.
h) Plastic injection molder - Proposed 60,000 sq ft
production, no office. 100-125 employment within two
years. Three shifts, ?-days a week. Estimated three
million dollar project, top quality. Has accounts will
Andy Anderson. Clean company, high electrical rxeeds.
Two plants in Chaska, current 550 employment, 80 million
dollar company. Property tax estimated and waterJsevaer
costs estimated based on 2.4 gallons usage per year.
Linder consideration for purchase of land in 94 with fall
or spring construction. Public Resource Group package
for company through Glenco.
i) Plastic fabricator & thermoformers - Met April 14 with
owner and spouse, family owned business. Proposed
10,000-15,000 sq ft building, 21 year old company, leases
an existing building an Broadway and Central. Flexible
time frame. need willingness of younger family members to
relocate, lead from Tom St. Hilaire.
j) National distributor of photo supplies - Contact March
28, looking to lease 10,000 sq ft (2,000 sq ft office).
Decision late summer. Referenced Pheffer's building. 18
jobs, 9 year old company, looking outside Hennepin
County.
k) Frozen pretzel dough - Looking to lease 5,000-10,000 sq
ft for production. 10-15 production employees.
Relocation from North Minneapolis, owners previous
Pillsbury staff. Initial contract April 12, referenced
Pheffer building.
1) Quality Welding - No site decision as of May 5, looking
at options. 10,000 sq ft, interested in Lot 7, Thomas
Park Addition or City Lat.
m) Sma].1 electronic firm -Representative looking for lease
facility of 6,000-10,000 sq ft. Referenced Pheffer"s
building. This SD company has 200-300 employees, will
expand to 50-60 jobs in Minnesota community. Date fall
operational.
BRE REPORTS:
d) H-Window Company - Following a May 4 meeting between
Steve Lemme; Knut Flakk; Brad Simenson and Dentley
Haugesag, Minn TED: and myself; I was informed that
• Senior LOaIl Officer Simenson would recommend the approval
Page 2
IDC AUENDA
MAY 19, 1994
of a $250,000 Small Cities Recovery Grant for the H-
Window based the on company satisfying a list of
conditions. Although, this is a reduction from the
original request of $400,000, the H-Window and City would
be very pleased.
LJ
Page 3
April 19, 1994
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Faxr (612) 295-4404
Mr. Vinny Beggs
Economic Development Officer
Dungannon llistrict Council
Circular Road
Dungannon, Co~~nty Tyrone
Northern Ireland
Dear Mr. Beggs:
Greetings from the City of Monticello. The Monticello Rotary Club
and the Industrial Development Committee (IDC) are supportive of
Don Smith and his wife, Nancy`s, plans to visit Northern Ireland.
Their iiiitiai:ive anti this opportunity to resurrect the ties
established last October between Dungannon-Monticello is an
indication of the willingness to proceed with the initial
connection objectives.
First, please be assured that the suggested itinerary outlined in
my letter of December 7 to Mr. William Beattie still stands.
Additionally, be assured of the itinerary's flexibility and our
willingness to be of assistance.
Secondly, in response to your questions regarding details of
Monticello companies who might be interested in joint licensing,
venturing, and marketing initiatives, or wishing to explore the
European market, I hesitate to speak for the Monticello industrial
companies; therefore, I suggest and prefer upon your planned visit
to Monticello and our industrial b~zsinesses the questions be posed
directly. I can inform you that in a 1992 survey completed by
seventeen local industries, two indicated international markets.
Thirdly, you inquired of background information on the role of the
IDC and its relationship with other government agencies. The
Monticello IDC was established approximately 20 years ago as a
vol~a.nteer organization. The bottom-line goal of the eighteen-
. member organization is to retain and create jobs and to increase
MONTICELLO
Mr. Beggs
April 19, 1994
Page 2
the local tax base. The organization is funded by the Monticello
City Council, Chamber of Commerce, and through its annual fund-
raiser banquet. The organizational goals are accomplished through
the continued efforts of its Business 12eteiition and Expansion,
Marketing, Education, Legislative, and Infrastructure
Subcommittees. These s~ibcommittees are comprised of selected IDC
members, industrial leaders, and local citizens with expertise in
areas of a designated task. The strength of the organization lies
iri its established credibility and the united endorsement of tYie
community acid all local governmental agencies and staff.
In addition, the IDC through the City of Monticello supports and
endorses comity, regional, and state economic development efforts.
The IDC recognizes what is good for the county, region, and state
is good for the City of Monticello. This broad-minded view has led
Monticello to be one of the state's small community leaders in
economic development through its participation in the Minnesota
Trade and Economic Development Department, Minnesota Trade Office,
Minnesota Business h'inance, and Minnesota Advantage. Other
participation efforts include the Quad-County Economic Development
Network and the newly established private/public Wright County
• Economic Development Partnership.
Vinny, I hope this answers a few of your questions. However, most
importantly, the Monticello Rotary is interested in pursuing the
initial objectives established between Dungannon-Monticello.
Again, please be reminded of my willingness to assist the Dungannon
District Council group on their anticipated trip to Monticello.
Sincerely,
CITY OF MONTICELLO
Ollie Koropchak
Economic Development Director
cc: William J. Beattie, Chief Executive, Dungannon District
Council
Victor Marshall, Dungannon, County Tyrone, Rotary
Dr. Sue Reiner, President, Monticello Rotary
Brad Fyle, Mayor, City of Monticello
John McVay, President, IDC
May 6, 1994
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Ms. Maureen Steinwall
Steinwall, Inc.
7895 Ranchers Road NE
Fridley, MN 55432
Dear Maureen:
On behalf of the Monticello Industrial Development Committee (IDC) ,
• I congratulate Steinwall, Inc. as a recent recipient of one of the
National Blue Chip Enterprise Initiative Awards. Recognition for
creativity and innovation in the face of adversity. Wow, that's an
accomplishment. The IDC is extremely proud of you and our
association with your company.
We look forward to ttie "marriage" of the somewhat long courtship
between Steinwall, Inc. and the City of Monticello.
Again, Maureen, congratulations to Steinwall, Inc.
Sincerely,
CITY OF MONTTCELLO
U 9.~.:Q, K ~, ~J
c711ie Koropchak
Economic Development Director
cc: File /
MONTICELLO
May 6, 1994
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Ms . Ar. leiie lleCandia
Riverwood Metro Business Resort
10990 95 Street NE
Monticello, MN 55;362
Dear Arlene:
On behalf of tYie Monticello Industrial Development Committee (IDC),
• I congratulate Riverwood Metro Business Resort as a recent
recipient of one of ~tlie National Blue Chip Enterprise Initiative
Awards. Recognition for creativity and innovai:ion in the face of
adversi~t:y. Wow, that's an accomplishment. The IDC is extremely
proud of you and your a;~sociation with our community.
Again, Arlene, corigratulatioris to you and your staff.
Sincerely,
CITY OF MONTICEhLO
O~ ~~ ~
t)llie I{oropchak
Economic Development Director
cc: bile
MONTICELLO