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IDC Agenda 06-17-1993AGENDA MONTICELLO INDTJSTRIAL DEVELOPMENT COMMITTEE Thursday, June 17, 1993 - 7:00 a.m. City Hall MEMBERS: Chairperson John McVay, Vice Chairperson Kevin Doty, Treasurer Ron Hoglund, Shelley Johnson, Don Smith, Lowell Schrupp, 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 MAY 20, 1993 IDC MINUTES 3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT. 4. CONSIDERATION OF PROSPECT UPDATES: a) Steinwall, Inc. b} Wilson Tool, Inc. c) Weinhold Company d) Standard Iron & Wire Works, Inc. e) Medical Transcription f) Customer molder of industrial and medical products g) Right-Choice Services BRE UPDATES: a) The H-Window Company b) Aroplax Corporation c) BRE Reports 5. CONSIDERATION OF IDC BANQUET DATE AND SPEAKER. 6. CONSIDERATION OF PROJECT UPDATES: a) Monticello Commerce Center Zoning Request b) NSP/Community RR Partnership Committee c) Central Minnesota Initiative Fund Meeting d) Wright County Development Group Meeting e) Industrial Business Directory f) HRA Senior Housing Congregate/Assisted-Living Summary 7. OTHER BUSINESS: a) Chamber announcements 8. ADJOURNMENTS. • _~ MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, May 20, 1993 - 7:00 a.m. City Hall MEMBERS PRESENT: Vice Chairperson Kevin Doty, Treasurer Ron Hoglund, Don Smith, Arve Grimsmo, Jay Morrell, Ken Maus, Dennis Taylor, Tom Lindquist, Merrlyn Seefeldt, Cyndie Johnson, and Mary Micke. MEMBERS ABSENT: Chairperson John McVay, Shelley Johnson, Lowell Schrupp, Harvey Kendall, Dave Peterson, Linda Mielke, Steve Lemme, and Dr. Glenn Nemec. STAFF PRESENT: Jeff O'Neill and Ollie Koropchak. STAFF ABSENT: Rick Wolfsteller. 1. CALL TO ORDER. Vice Chairperson Doty called the IDC meeting to order at 7:03 a.m. 2. CONSIDERATION TO APPROVE THE APRIL 15, 1993 IDC MINUTES. Ron Hoglund made a motion to approve the April 15, 1993 IDC minutes. Seconded by Merrlyn Seefeldt and with no corrections or additions, the minutes were approved as written. 3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT. Treasurer Hoglund reported a Metropolitan Federal balance of $1,241.13 and a Marquette balance of $4,134.00 for a total balance of $5,375.13. Monthly disbursements were for advertising, the BRE Breakfast, EDAM membership, and the Custom Canopy Groundbreaking Reception. Arve Grimsmo made a motion to accept the May financial report. Seconded by Tom Lindquist and with no corrections or additions, the financial report was accepted and filed as given. Treasurer Haglund requested the IDC consider the addition of Koropchak's name to the IDC bank accounts. This to increase the convenience of securing the second-required IDC signature for check issuance. Arve Grimsmo made a motion authorizing the addition of Ollie Koropchak's name to the IDC accounts at Metropolitan Federal Bank and Marquette Bank - Monticello. Seconded by Mary Micke and without further discussion, the motion passed unanimously. • Page 1 -~ IDC MINUTES MAY 20, 1993 4. CONSIDERATION OF PROSPECT UPDATES: a) Steinwall, Inc. - Mr. Brotherton and Koropchak visited industrial sites on April 20. The company is most interested in sites with freeway exposure, projected land and building costs are 1.2 million dollars, and the company's current employment is 70. The company anticipates purchasing property in 1993 with building construction projected for 1994. Mr. Brotherton had planned to attend the BRE Breakfast. Koropchak has left numerous messages of which Mr. Brotherton has not returned. b) Wilson Tool, Inc. - In a conversation with Mr. Tom Emery on May 7, Koropchak was informed that Wilson Tool had hired a manager far the proposed new plant. The new manager is from the Minnetonka area and has suggested the company consider a western Metro suburb site location. The company will be looking at new site locations in the next weeks, the project is still scheduled for 1993, and Monticello still remains a contender. The company will receive a second letter marketing Monticello and its financial proposal. In addition, the IDC suggested that Monticello's position may be strengthened if the Tapper's • were willing to contact the company on behalf of the City of Monticello. c) All-Temp Distribution - With the unknowns of the future railroad availability and as per the enclosed Hoglund letter which states the family's decision to market and sell the 72 acre industrial site to one developer, Mr. Holman will refocus and look at other expansion options. d) Weinhold Company - With the inquire from Vogel Display, Koropchak proceeded to contact contractors interested in a building to lease/purchase option. The two projects being of the same timeframe would allow for the creation of one TIF District thereby reducing City costs and providing a greater tax increment benefit to the companies. Dan and Craig Miller of Miller Construction, St. Cloud, expressed interest and the two companies were informed of the need to update financial statements and their business plan. Mr. Weinhold is in the process of doing so. Proposed project is 5,000 sq ft, 6 full-time jabs, and the product is quick-change bits for power drills. The company's current lease agreement in St. Louis Park expires December 1993. The Insty-Bit market piece was made available to IDC members. e) Vogel Display - A small St. Louis Park company which manufactures Christmas decorations is looking to relocate. The company's current lease expires in • December 1993. The proposed project would be a 20,000 sq Page 2 IDC MINUTES MAY 20, 1993 ft metal facility consisting of heat and cold storage. The company employs five full-time and during the peak season employs up to thirty. Upon further contact with Mr. Vogel, his decision was to delay his relocation plans. f) Leo Adams - Koropchak reported the start-up company has been unsuccessful in their attempt to secure conventional financing locally, therefore, the project concept was referred to BDS, Inc. for potential assistance in securing funding. Merrlyn Seefeldt reported Bill and she were cooled on the idea to lease to Mr. Adams as he wished to lease 10,000 sq ft and had no committed clients. BRE UPDATES: a) The H-Window Company - Koropchak reported Pat Pelstring and Lenny Kirscht of BDS, Inc. and herself are scheduled to meet with the Norwegian Board members and Mr. Steve Lemme on Tuesday morning, May 27. The meeting will be to discuss the development of a financial proposal for the company's planned expansion. Arve Grimsmo reported the Norwegian glass company sold out to a major firm, the • board has given the go ahead for a plant expansion, long-term plans call for a second major expansion in 96- 97 , and that Knut Flakk and his family would be moving to the US. b) BRE Business Reports - No reports were given. 5. CONSIDERATION TO SUMMARY THE 1993 BRE BREAKFAST AND HEAR FFF1lRA~K Koropchak provided IDC members with a recap of the BRE Breakfast attendance. Total attendance being 42 or one greater than the previous year; however, seven industrial leaders who committed to attend were not present. The breakfast objective is to provide an informal networking opportunity for IDC, city staff, and industrial leaders. Various comments and ideas surfaced from IDC members: Spring, busy time of the year; try a 7:00 pm Cocktail Networking Hour; sponsor a shared-service (wages, benefits) workshop far just industrial leaders; and support for the current breakfast concept. • Page 3 IDC MINUTES MAY 20, 1993 6. CONSIDERATION TO HEAR AN UPDATE OF THE MONTICELLO COMMERCE CENTER REZONIN_G_ REQUEST AND TO REVIEW CHAIRPERSON MCVAY'S LETTER. Jeff O'Neill reiterated the proposed Gair rezoning request as heard by the Planning Commission in May. The I-1 request included a 35-acre strip along Fallon Avenue from Chelsea Road south to the school property and remaining industrial property be BC zoning. The Planning Commission tabled the item as the one and one-half hour presentation wore the commissioners down. Koropchak summaried the results of the April IDC meeting stating the members felt encouraged that compromise and progress was being made, questions were asked, no direction given, and members were encouraged to contact staff for additional comments. Two concerns raised following the IDC meeting were to ensure that the proposed larger ponding area not infringe on the school property and that the berm plantings be of types to encourage low-clearance visibility which might assist to discourage potential gathering of students. • Additionally, Koropchak informed members that the enclosed letter to Mr. O'Neill from Mr. McVay was the result of a meeting between Pfeffer, McVay. and herself which transpired a few days following a meeting between Pfeffer, Gair, Taylor, Griffth, O'Neill, and Koropchak. At that meeting, the City Planner recommended the entire industrial area remain Business Campus (BC) only. Koropchak noted Mr. McVay's letter suggested that consideration be given to reduce the 30~ green space if the property were zoned BC only OR that consideration be given for a combination Light Industrial (I-1) and BC zoning. McVay's letter does not suggest the consideration of both options, only, one of two options. Vice Chairperson Doty informed members that Planning Commission Chairperson Lemme would appreciate some input from the IDC. Jay Morrell said he has never supported a BC zoning next to an I-2 zoning. Dennis Taylor said Mr. Gair's plan presented a compramise with the combination of I-1 and BC zoning while encouraging development. Mr. O'Neill said a BC zoning would secure a plan for quality long-term development for the City of Monticello. All agreed to BC zoning along the freeway and suggested the same zoning concept be applied to the Haglund • Page 4 IDC MINUTES MAY 20, 1993 property upon development. However, some members felt BC may be good planning but does not encourage marketing or property development. Merrlyn Seefeldt made a motion recommending 350 feet I-1 zoning east of and parallel with Fallon Avenue between Chelsea Road and the school property. Cyndie Johnson seconded the motion, adding she initially opposed the BC 30~ green space requirement. The motion was discussed and Mr. Taylor suggested amending the motion to allow for two tiers of I-1 lots or 800 feet east of and parallel with Fallon Avenue. Tom Lindquist suggested calling a special IDC meeting to further discuss the proposed zoning request. Mayor Maus suggested the motion eliminate the footage amount and leave that decision up to the experts. Merrlyn Seefeldt amended the original motion recommending a minimun of 300 feet I-1 zoning east of and parallel with Fallon Avenue between Chelsea Road and the school property. Cyndie Johnson seconded the motion and without further discussion, the motion passed unanimously. The Planning Commission will review the zoning request at their June meeting. 7. CONSIDERATION TO HEAR OF THE SCHEDULED COMMUNITY/NSP RAILROAD PARTNERSHIP COMMITTEE MEETING. Based on the recommendation from the IDC, a NSP/Community Railroad Partnership Committee has been formed and will meet following the IDC meeting. Members are Arve Grimsmo, Harvey Kendall, Ron Hoglund, Mayor Maus, Charlie Anderson, and Koropchak. Other players will be asked to become involved as the objective research is complied. Today's meeting will outline the committee's objectives and tasks. 8. OTHER BUSINESS: a) Chamber President Micke reminded members of the Chamber meeting today at 11:50 a.m. at the American Legion. Program: "Customer Service and Understanding Your Customers" by Terry Slattery. b) Koropchak announced the upcoming Wright County Development Group meeting scheduled for Thursday, May 27, 1993, 7:30 p.m. at Functional Industries on Highway 25, Buffalo. c) The IDC congratulated Jeff O'Neill and the Parks Commission as recipient of a Minnesota Bikes, Trails, & Pathways Grant. The City of Monticello was awarded $285,000 for development of a city system. Monticello • was one of a few cities to receive a grant. Page 5 • IDC MINUTES MAY 20, 1993 9. ADJOURNMENT. The IDC meeting adjourned at 8:35 a.m. Ollie Koropchak, IDC Executive Director • • Pa e 6 g JNTY pA O v ~. 2 0 ~ dy 7855 RICHARD W. NORMAN County Coordinator Ollie Koropchak Economic Development Director City of Monticello P.O. Box 1147 Monticello, MN 55362 Dear Ms. Koropchak: KEN JUDE 10 N.W. 2nd Street First District Buffalo, Minnesota 55313-1193 PAT SAWATZKE Second District Tel: (612) 682-7378 JACK RUSSEK Metro: (612) 339-6881 Third District 1-800-362-3667 JUDIE ROSE Fourth District DICK MATTSON Fifth District June 9, 1993 Enclosed is the agenda for the Thursday, June 24, 1993 Economic Development Council meeting. As was discussed in the last letter and summary minutes, it has been decided to move ahead and formalize the organization. • At the June 24 meeting, one of the items is to begin to develop a mission statement and ethics statement. To help in the development of these statements, please come to the meeting with a sentence or two completing the following phrase "The purpose of the Economic Development Council is to..." Also be thinking of some actions to achieve the statement. This will aid in the development of goals and objectives. We hope you are able to attend this meeting. If you are unable to attend, please contact me with your ideas on the organizational structure, mission statement, goals/objectives, ethics statement, etc. You may contact me by phone at 682-7362 or via mail: Brian Heck, Special projects Administrator, Wright County Government Center, 10 N.W. Second St., Buffalo, MN 55313. Sincerel , Brian W. ~`"v Special Prtci • Administrator COUNT Y OF WRIGHT Equal Opportunity /Affirmative Action Employer ECONOMIC DEVELOPMENT COUNCIL AGENDA THURSDAY, .TUNE 24, 1993 10:00 a.m. Wright County Technical Center 1400 N. Highway 24 Buffalo, MN 1. Define Partners. a. County Driven b. Public/Private Partnership 2. Develop Mission Statement and Ethics Statement. • a. Goals and Objectives 3. Formalize. a. Name b. Organizational Structure/Type - 501 C(3) / 501 C(4) c. Staffing d. Financing/Budget 4. Select Board (10 to 12 members). 5. Determine and Assign Committees (by-laws, finance, etc.). 6. Other Business. 7. Adjournment. • i The following is the mission statement developed in September of 1990 by the Wright County Economic Development Committee. This Committee consisted of Commissioner Arlyn Nelson, Commissioner Wes Wittkowski, Richard Norman, Forrest Amundsen, Tom Salkowski, Maxine Ladda, and Dwayne Bruns. To assist local units of government in the retention/expansion of existing businesses and attraction of new businesses, thereby increasing employment opportunities. This mission statement was to be incorporated in to an economic development plan for the County. A plan similar to an Overall Economic Development Plan. • • SUMMARY MINUTES WRIGHT COUNTY ECONOMIC DEVELOPMENT GROUP Thursday, May 27, 1993 7:30 p.m. Present: Dave Hietala (Central Minnesota Initiative Fund), Mary Eberely (Sherburne County), Bob Pauly (Sherburne County), Sandy Halbleib, Ken Jude, Dave Zylstra, Larry Schwahn, Connie Wahlstrom, David Loch (Sherburne County), Ruben Bonk, Karen McDougall, Sharry Berning, Judie Rose, Carl Montzka, Bill Grabski, Alan Ostlund, Leslie Schumacher (Sherburne County), Neil McMillian, Tony Goddard (Sherburne County), Brian Heck. Not Present: Dwayne Bruns, Gary Hale, John Lundston, Jim Vrchota, Irene Neidzielski, Dwight Poss, Christine Rudnicki, Jerry Zimmer, Pat Sawatzke, Vern Heidner, John Bishop, Curtis Jacobson, Don Levens, Ollie Koropchak, Richard Norman. #1. Discussion of Central Minnesota Initiative Fund. Following introductions, Dave Hietala, Grants Program Manager for the Central Minnesota Initiative Fund (CMIF) presented background and information on the various programs they offer. He stated that there are three main funding programs- Rural Life, Community Partners, and the Community Initiative Award (CIA) . He stated that the Rural Life program is a catch all program and various programs, such as environmental, economic development, etc. Funding could be in the amount of $10,000. . The Community Partnership program provides funding to bring communities together to begin addressing a problem that may be common to all. These are longer term funding operations in the amount of $9,000 to 10,000. This program addresses a number of areas such as training, networking, and collaborative efforts. The C.I.A. grants are small grants of no more than $2,500 designed for short term community projects such as completing a comprehensive plan. He also described a new program, collaboration mini-grants. These were borne out of the conference held earlier in the month. These are small short term grants designed to get people together to talk about common issues. Sort of a bridge to the activities of the Community Partners program. J. Rose asked specifically about funding for environmental issues. Giving an example of sewer issues. Hietala responded that the rural life fund would be the most likely place to seek funding, however, if it is an issue that requires a number of agencies to work together, may be the collaboration mini-grant or community partners program. C. Wahlstrom asked to get an example of funding for economic development programs. Hietala stated that currently Todd County has a grant from the community partners program to work on addressing economic development issues on a broad base. He also mentioned the cities of Foley and Emily. • Summary Page 2 B. Grabski stated that this group may be beyond the scope of what the CMIF programs address. This is a group made up of members of the broader community i.e. utilities, private non-profit, schools, and the various levels of local government. The group has completed a study and is now at the point of going to the next step. i.e. formalization. The group is ready for long term funding assistance. He wanted to know if this group is too far along to apply for funding from CMIF. Hietala stated that the community partners program funds organizations anywhere in its life cycle. He said that the CMIF is not designed to provide ongoing long term funding. However, they can, and do, refer organizations to sources which might better meet the needs that CMIF can not. He also said that an organization which is operating well, will probably not get funded. K. Iude asked who makes application for funding. Car. this group do it or does some other organization have to do it on behalf of this group. Hietala responded by saying that any viable 501 C(3) not for profit organization can apply for funding. In the case of this group, as it is right now, a community would have to make application on its behalf. He said that some agency has to hold the funds and be liable for the progress and/or completion of the project and funds. B. Heck asked if an organization has a better chance of receiving funding if it can be shown that there will be continued funding in the future. Hietala said that is a main factor in providing funding for such purposes. . Wahlstrom asked about possibilities of getting funding. Hietala said that the family life programs are very competitive. The Community Partners Program in round two had 3 of 4 applicants funded. The CMIF was prepared to fund 6 programs but only received 4 applications. #2. Discussion on Quad-County. This item was not discussed as Mr. Garrison Hale was unable to attend the meeting. #3. Discussion with Sherburne County Economic Development Council. Mary Eberly, Chair of the Council opened by describing the history of the group. She stated that they were established by the County Board back in 1985 or 1986 to develop an Overall Economic Development Plan (OEDP). The members were appointed by the County Board (2 from each commission district) and a $4,000 budget allocated. When the plan was completed the committee was not funded and floundered about without a real purpose. Some time in 1990, the committee came back to the County Board looking for direction. The Board left it up to the committee to develop a direction. So they Did. They started to update the OEDP and completed a Business Retention and Expansion study. They found that the communities are well organized so the question became what should the County be doing. The council is looking to have a plan presented to the Board by July 1, 1993. The Summary . Page 3 council is funded by the County Board in the amount of $16,700 for 1993. Following more discussion on Sherburne County's experience, Rose stated that she feels it would be a good idea to continue to meet with Sherburne County, however, this group is not ready for staff i.e. no funding from the County to provide for staff. Wahlstrom asked what sorts of areas could the two groups cooperate on. Bob Pauly said that transportation planning is probably the most common area. However, acting as a region in retaining businesses in the area is also an area of concern. He used the example of a business that wanted to located in Sherburne County but could not find a suitable site. He said it would be beneficial for the County to suggest location is Wright County. Sherburne may not get the property tax benefits, but would create job opportunities for people in Sherburne. Zylstra asked if the Sherburne County Economic Development Council would participate in "raiding". Eberely stated that is not in the best interest of Sherburne County or Wright County so that type of activity would not be pursued. If, however, there was a business that wanted to relocate out of Wright County, without pressure or luring from outside sources, then Sherburne would attempt to get them in their County. Dave Loch expanded on those comments saying that the region of Stearns, Benton, Sherburne, and Wright counties do not have a central planning function. He is not advocating creation of the 7W again, but feels there is a need for an Area Planning Organization (APO) or a Regional Development Council (RDC). He feels this is needed particularly in the area of transportation. Jude commented that the group needs to move forward. It needs to elect officers and scrape around for funding. Rose concurred stating that she would also like the name changed from "Group" to "Council" . Heck read a list of items left by Neil McMillian. McMillian identified the following. Organization 1. County Wide; 2. Broad Based Representation; 3. 10 to 12 maximum on the board; and 4. No more than 50% of the representation by "politico types". He then identified 5 Action items. i. Select a board (10-i2); 2. Develop a Mission Statement; 3. Define the partners (county driven, orpublic-private); 4. Formalize the organization, structure, incorporate, by-laws, etc.; and 5. Staffing (volunteer vs. Administrator/clerical). It was decided that the Council would meet again on Thursday, June 24, 1993 at 10:00 a. m. at the Wright Technical Center with the purpose of formalizing and establishing the Economic Development Council.