IDC Agenda 09-16-1993AGENDA
MONTICELLO INDUSTRIAL DEVELt)PMENT COMMITTEE
Thursday, September 16, 1993 - 7:00 a.m.
City Hall
MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty,
Treasurer Ron Hoglund, Shelley Johnson, Don Smith, Lowell
Srhrupp, Arve Grimsmo, Jay Morrell, Harvey Kendall, Ken
Maus, Dennis Taylor, Dave Peterson, Linda Mielke, Tom
Lindquist, Steven Lemme, Merrlyn Seefeldt, Cyndie
Johnson, Mary Micke, and Dr. Glenn Nemec.
STAFF: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE AUGUST 19, 1993 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Standard Iron & Wire Works, Inc. (Tentative date of
Ground Breaking Reception, Friday, October 1, 1993, 4:15
p.m., City Hall).
b) Custom molder of industrial and medical products.
c) Pampered Pets Cuisine
d) Fluidyne, Inc.
e) Irresistible Ink
BRE UPDATES:
a) H-Window Company
b) Sunny Fresh Foods
5. CONSIDERATION TO DISTRIBUTE IDC BANQUET TICKETS AND OTHER
DISCUSSION RELATING T0.
6. CONSIDERATION OF PROJECT UPDATES:
a) Star City Conference "On the Cutting Edge", September 22,
23, and 24, Radisson Hotel Minnetonka.
b) Central Minnesota Initiative Fund Report - Kevin Doty.
c) LDI, Inc., Becker, MN - John McVay.
7. OTHER BUSINESS:
a) Monthly Chamber meeting, today, 11:50 a.m., American
Legion, Program: United Way and Connect 4 Community
Service.
8. ADJOURNMENT.
STANDARD IRON
USES OF FUNDS
`:€
Land $ 120,000
Site Improvements 194,000
Construction 1,556,000
Equipment 805.0pp
TOTAL 504 USES OF FUNDS $2,675,000
~.
Horizontal Machining Center 450 000
TOTAL USES OF FUNDS 3 125 000
• SOURCES OF FUNDS
Bank (ARM, 20 Years, lst) $ 856,000
SBA 504 (7°!0, 20 Years, 2nd) 700,000
~l~tY - T~ 314.000
TOTAL 504 BUII,DING SOURCES OF FUNDS $1,870,000
Bank (8%, 10 Years, 1st M & E) $420,000
SBA 504 (6.5%, 10 Years, 2nd M & E) 300,000
~l~tY 85.000
TOTAL 504 EQUIPMENT SOURCES OF FUNDS 805
TOTAL 504 SOURCES OF FUNDS $2,675,000
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State of Minnesota (6% 10 Years, 1st Purchase Money) $250,000
CMIF (6 % 10 Years, 1st Purchase Money) 100,000
City of Monticello (6 % 10 Years, 1st Purchase Money) 75,000
~~ty 25.000
TOTAL OTI~R SOURCES OF FUNDS $450,000
TOTAL SOURCES OF FUNDS 3 125 000
DEBT SERVICE
U
Years 1-10 Years 11-20
Bank -Building (Avg. 9 %) $7, 705 $7, 705
SBA -Building 5,427 5,427
Bank -Equipment 5,095 0
SBA -Equipment 3,406 0
State 2, 775 0
CMiF 1,110 0
City 835 0
TOTAL MONTHLY $26,353 $13,132
TOTAL ANNUAL $316,236 $157,584
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MINNESOTA DEPARTMENT OF
TRADE AND ECONOMIC DEVELOPMENT
•
500 Metro Square
121 7th Place East
Saint Paul, Minnesota 55101-2146 USA
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September 3, 1993
Ms. Ollie Koropchak
City of Monticello
P.O. Box 1147
Monticello, Mn 55362-9245
Re: Standard Iron and Wire Works, Inc.
Dear Ms. Koropchak:
We are uncertain how to proceed with the application
for Standard Iron and Wire Works, Inc.. The Part 1 portion
of the Single Application requests State assistance in the
amount of $250,000.00. However, only one Economic Recovery
Fund loan can be considered per f fiscal year. Since it
appears the City of Monticello's first preference is to
support the application for H-Window, the file for Standard
Iron cannot be appraised for a Economic Recovery Fund.
To consider the application for H-Window, the
application for Standard Iron will need to be withdrawn.
Please advise if this is the course of action you wish to
follow. Thank you.
Sincerely,
~~ '
Bradley L. Simenson
Senior Loan Officer
(612) 296-1145
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An Equal Opportunity Employer
September 14, 1993
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Mr. Bradley L. Simenson
Senior Loan Officer
Community Development Division
Department of Trade & Economic Development
500 Metro Square
121 ?th Place East
St. Paul, MN 55101-2146
Re: Standard Iron and Wire Works,-Inc.
. Dear Mr. Simenson:
The City of Monticello, located within the County of
Wright, supports the Wright County Economic Recovery Fund
Application to assist Standard. Iron and Wire. Works, Inc.
The application requests State assistance in the amount
of $250,000.
The City of Monticello understands that the County will
be the recipient of the grant award. The City has been
supportive of the County's efforts to establish an
Economic Development Partnership and views the grant
award to the County as another example of the excellent
working relationship established between the County of
Wright and the City of Monticello.
Standard Iron and Wire Works, Inc. will construct a
53,200 square foot office/manufacturing facility in
Monticello's Oakwood Industrial Park resulting in the
creation of T2 new fobs.
Again, the City of Monticello is supportive of the
Standard Iron project and the County's application
requesting State funding to assist Standard Iron and Wire
Works, Inc.
•
. Mr. Simenson
September 14, 1993
Paqe 2
If you have any questions, please don't hesitate to
contact me at METRO 333-5739 or (612) 295-2711.
Sincerely,
CITY OF MONTICELLO
~~ /~
Ollie Koropchak
Economic Development Director
cc: Brian Heck, County of Wright
Lenny Kirscht, BDS, Inc.
Rick Wolfsteller, City Administrator
File
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C~
- POLYCAST
Financing Structure
USES OF FUNDS
Land - 4.4 acres at $12,500/Acre
Building - 16,800 square feet at $ZO/square foot
Contingency
TOTAL USES OF FUNDS
SOURCES OF FtiNDS
City - T~
Bank (ARM, 20 Years, 1st REM)
SBA 504 (79b, 20 Years, 2nd REM)
TOTAL SOURCES OF FUNDS
DEBT SERVICE
Bank (Avg. 995 )
SBA 504
TOTAL MONTHLY
TOTAL ANN i 1.~ L
COST/SQUARE FOOT
$1,745
l .495
$3.240
$38,880
$2.31/square foot
$ 55,000
336,000
24.000
$415,000
$ 55,000
194,000
166.000
$415,000
SEP-14-'93 TUE 12:G~0 ID:BDS INC. TEL N0: 786-9034 #777 P02
U
PAMPERED PETS CUISINE
USES dF FUNDS
Land - 3 Acxes at $13,000/Acre _ .
Building - 15,000 square feet at $25/squaze foot
Hgtlipment
Contingency
f TQTAL USES QF FUNDS
equity
T1F
Company
Ban1c
Business Bond Program (696, 10 Years, 1st)
Conventionai (8.596 , i 0 Years, i si)
. SBA,SO4 (796, 10 Years, 2nd)
CMIF (696, 10 Year term)
aMSP (696, 10 Year term)
TOTAL SOURCES OF FUNDS
Batik
Business Bond Program $2,?75
Conventional 1,860
SBA504 4,586
CNiIF 555
GiMSP ~
TQTAL MpNTHLY $10,331
. TQTAL ANNUAL $123,972
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$ 39,000
373,000
730,000
$1,195,000
$ 39,000
261,000
250,000
150,000
395,000
s0,ooo
~~~
$1,195,000
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Mark Olson
State Representative
District 19A
Sherburne and Wright Counties
a~°'~ Minnesota
_ - ~~ {_ House of
-~ ~- Representatives
COMMITTEES: COMMERCE AND ECONOMIC DEVELOPMENT; GOVERNMENTAL OPERATIONS AND GAMBLING;
HOUSING; STATE GOVERNMENT FINANCE; TOURISM
August 24, 1993
Ollie Koropchak
Economic Development Director
City of Monticello
250 East Broadway
P.O. Box 1147
Monticello, MN 55362-9245
Dear Ollie:
•
Thank you for contacting me and making me aware of the concerns regarding the H-
Window Company. I've spoken with the Department of Trade and Economic Development
and I have also corresponded with them. A copy of my correspondence is enclosed.
I have requested that Commissioner Gillette visit our district. I'm hopeful this will occur
and would like to speak with you regarding the details. Please give me a call on Monday
or Tuesday of next week.
I hope this finds you doing well. Thanks again.
Sincerely,
~G~
Mark Olson
State Representative
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17085 142nd Street, Big Lake, Minnesota 55309 (612) 2633500
State Office Bwkling, St Paul, Minnesota 55155 (s12) 296-4237
House Fax (612) 2ss-1563 TDD (s12) 2ss-sSSs
Wednesday, September 22, 1993
8:00 - 9:00 am Registration: Continental Breakfast
9:011= 9:15 am Welcome - E. Peter Gillette, Jr.
Commissioner, MN Department of
Trade and Economic Development '
9:15 -10:00 am Keynote Address
John T. Golle, Chairman/CEO
Education Alternatives, Inc.
10:00 -10:30 am Break
10:30 -11:45 am Concurrent Session 1
A. MN Companies Using Technology
to Improve Their Competitive Edge
DTED Targeted Industries
Wood Industry: Richard Bujalski,
Pres. Redwood Industry, Inc.
Medical industry: Blair Mowrey,
Pres. GalaGen
Printing/Publishing Industry:
Dan L. Nitz, Pres. Brown Printing
Company
B. Linking Business with Cutting Edge
Employee Training
Roger Hughes, MN Job Skills
Partnership
Rich Josephson, St. Cloud State Uniu
Scott Blanc, Northwest Technical
College
C. How to Become a Star City
Community and How to Access
the Community Needs
Assessment Program.
Bill Coleman, DTED Offce of
Regional Initiatives
Becky Hall, DTED Office of
Regional Initiatives
11:45 -12:45 pm Luncheon -
Regiona! Economic Development
Blue Prints -Jenny Engh, Deputy
Commissioner, DTED Business and
Community Development Division
~:45 - 2:15 pm Concurrent Session 2
Regional Blue Print Discussion
Groups Led by Regional Teams
Responsible for Developing Regional
Blue Prints in the 7 DIED Regions
2:15 - 2:30 pm Break
2:30 - 3:45 pm Concurrent Session 3
A. Defense Conversion: Assisting
Sub-Contractors with Technology
Transfer
Ed Rippe, MN Project Innovation
MN Technology, Inc. (to be onnowced)
B. 10 Good Reasons to Locate in
Minnesota
Bob Isaacson, DTED Information
Analysis & Evaluation Office
John Jensvold, Northern States
Power
C. Using Economic Development
Authority Powers to Fund
Cutting Edge Projects
• Gene Goddard, DTED Office of
Regional Initiatives
Community Panel
• 5:00 - 6:00 pm Reception - (optional)
6:00 pm Banquet -
Bizweek - A weekly business news
and issues program on KTCA TV -
Channel 2: A Panel Discussion on
Business Development. Host Jennifer
Waters
Presentation Of All-Star Awards -
Recognition Of 10 Yeaz Staz Cities
E. Peter Gillette, Jr., Commissioner
DTED
Thursday, September 23,1993
~ 8:00 - 9:30 am Breakfast -
Sponsored by the Economic
Development Association Of
Minnesota: Robert W. Hubbazd,
~ Executive Vice President United
States Satellite Broadcasting
9:30 - 9:45 am Break
9:45 - 11:00 am Topical Round Table Discussions
Agency and Service Provider
One-on-One Discussion Tables
11:00 -12:00 am Concurrent Session 4
A. Regional Access Program: Using
Technology to Increase Access to
Economic Development Data
Mark Lofthus, DTED Office of
Regional Initiatives
Dan Quillin, DTED Information '
Analysis & Evaluation Office
B. Hiring an Economic Development
Consultant When, Why and How:
Community Panel:
Colleen Winter, City of New Prague
Don Jasperson, Glencoe Chamber
Christina Gilchrist, Alexandria EDC
Bob Kirchner, City of Anoka
C. School Based Entrepreneurship:
The Cutting Edge in Secondary
Education
Gerry Wenner, DTED Office of
. Regionallnitiatives
Tom Fosse, Director, Rothsay
Learning Institute
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12:00 -1:30 pm Lunch "what Economic Friday, September 24, 1993
Development Means to Me"
Legislative Panel Q & A Session 8:00 - 9:00 am Continental Breakfast
Rep. Rick Krueger DFL, Staples `~
Rep. Dave Bishop IR, Rochester ~ 9:00 -10:00 am General Session -
Sen. Linda Runbeck IR, Circle Pines '~ IDRC Panel "Buying and Selling
Sen. Dallas Sams DFL, Staples Minnesota: Marketing the North
Moderator: Jenny Engh, Deputy F. Star State"
Commissioner, DTED, Business and E: Peter Gillette, Commissioner, DTED
Community Development Division ~; Bruce Hendrickson, Pres.,
Advantage Minnesota
1:30 - 2:30 m Concurrent Session 5 a;_
p Donald Hagmann, Medtronic, Inc.
A. Telecommunications Technology: William Tobin, Tobin Realty
What Every Economic Developer
• Should Know Susan Koch, Ph.D., 10:00 -10:15 am Break
Telecommunications Consultant .
B. Federal Legislation: How Changes 10:15 -11:45 am Concurrent Session 7
in Administration Policy Will A. Turning Your Economic
A,~ect You Todd Johnson, DTED Development Committee into a
C. Competing in the Global Market Cutting Edge Sales Force:
Place Roger Prestwich, Drew Whitler, Resource Applications
Minnesota Trade Offtce B. Technology Transfer Accessing
Federal Research and
2:30 - 2:45 pm Break University Labs ,
2:45 - 4.00 pm Concurrent Session 6 Ed Rippe, MN Project Innovation
' C. DTED Business and Community
A. Cottage Industry Development: Financial Assistance Programs
Helping Small Business to Move Mike Auger, Business
from the Basement or Garage to Development & Finance; Paul
the Business Park Robert F. Moe, Business Development &
Knotek, Knotek Consulting Finance; Louie Jambois,
. Community Finance
B. Telecommunications Superhighway:
Helping Business Get in the 11:45 -12:30 Luncheon
Right Lane Panel Discussion by:
Steven Miske, Vista Telephone 12:30 -12.45 pm Closing Remarks -
Randy Young, MEANS, Inc. Jenny Engh, Deputy Commissioner,
(others to be announced) Business and Community
C. Self Employment Investment Development Division
Demonstration (SEID) Program:
Assisting Low Income Individuals 1:00 pm Conference Adjournment
Establish Their Own Business
Lynn Crosby, Dept. Human Services
3:00 pm- CDC Workshop
4:00 pm - End of days activities