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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