IDC Agenda 05-20-1993• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, May 20, 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, Merrilyn 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 APRIL 15, 1993 IDC MINUTES.
3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
4. CON
a)
b)
c)
d)
• e)
f)
BRE
a)
b)
SIDERATION OF PROSPECT UPDATES:
Steinwall, Inc.
Wilson Tool Inc.
All-Temp Distribution
Weinhold Company
Vogel Displays
Leo Adams
UPDATES:
The H-Window Company
BRE Business Reports
5. CONSIDERATION TO SUMMARY THE 1993 BRE BREAKFAST AND HEAR
FEEDBACK.
6. CONSIDERATION TO HEAR AN UFDATE OF THE MONTICELLO COMMERCE
CENTER REZONING REQUEST AND TO REVIEW CHAIRPERSON MCVAY'S
LETTER.
7. CONSIDERATION TO HEAR OF THE SCHEDULED COMMUNITY/NSP RAILROAD
PARTNERSHP COMMITTEE MEETING.
8. OTHER BUSINESS:
a) Chamber Announcements - Mary Micke
b) Other
9. ADJOURNMENT.
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, April 15, 1993 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Treasurer Ron Hoglund, Shelley Johnson
(left early), Don Smith, Arve Grimsmo, Harvey
Kendall, Ken Maus, Dennis Taylor, Linda
Mielke, Steven Lemme, Merrilyn Seefeldt,
Cyndie Johnson, Mary Micke, and Dr. Glenn
Nemec.
MEMBERS ABSENT: Lowell Schrupp, Jay Morrell, Dave Peterson,
and Tom Lindquist.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie
Koropchak.
GUEST: Charles Pheffer, Jr., Pheffer COMPANY, INC.
and Mike Gair, McCombs Frank Roos Associates,
Inc.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:00 a.m.
2. CONSIDERATION TO APPROVE THE MARCH 18, 1993 IDC MINUTES.
Ron Hoglund noted the need for a correction on page 4,
paragraph one, line one: May 15 corrected to April 15. A
motion to approve the corrected March 18, 1993 IDC minutes was
then made by Ron Hoglund and seconded by Cyndie Johnson. With
no further corrections or additions, the minutes were approved
as corrected.
3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
Treasurer Hoglund reported a Marquette Bank balance of
$5,277.03 and a Metropolitan Federal balance of $1,238.67 for
a total balance of $6,515.70. One $640 disbursement was made
to the Minnesota Real Estate Journal. Linda Mielke made a
motion to accept the April IDC financial report. Seconded by
Mary Micke and with no corrections or additions, the financial
report was accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Custom Canopy - Both the TIF and GMEF funding sources
have received full approval and it is anticipated that
Page 1
• IDC MINUTES
APRIL 15, 1993
the bank/GMEF closing will be the week of April 26. IDC
members will be notified of the Groundbreaking Reception
in honor of Stephen and Joan Birkeland, Jr.
b} All-Temp Distribution - Mr. Holman has delayed his
location decision by thirty-days and is unable to attend
the BRE Breakfast. Reasons for the delay, he did not
receive the anticipated necessary commitment from one of
his potential customers, a customer who required no rail.
No security of a future useable rail and the unknown of
the Hoglund's to sell ten acres were the other reasons.
c) Wilson Tool International - The company will not be
attending the BRE Breakfast as the second-round of
interviews are in progress for selection of a plant
manager. Upon hiring the new plant manager, the company
will proceed with their site selection. The project is
still scheduled for 1993 and Monticello remains in the
running.
d} Mike Langer - Due to the unavailability of convenient
industrial space for lease in Monticello and due to the
options available in surrounding communities, Mr. Langer
has decided against a Monticello location. However, he
was very impressed with the community.
. e) Jim Thompson - The company's business plan is being
reviewed by Business Development Services, Inc. (BDS) for
project merit and thereafter, would BDS determine to seek
venture capital. This is a start-up business which has
developed a new pitching machine, needs dollars for
marketing and production.
f) Steinwall, Inc. - Richard Brotherton plans to attend the
BRE Breakfast. On Friday or Monday, an appointment will
be made to visit Monticello industrial site options. The
company plans to construct a 35,000 sq ft metal building,
prefers freeway exposure, and currently employs 70.
BRE UPDATES:
a) BRE Business Reports: IDC members had no reports.
Koropchak reported that she had visited both the Aroplax
and SMM new facilities. Aroplax has opened local
accounts and purchased a truck, locally. SMM reported
having reached their projected two-year employment of 25.
Additionally, Koropchak reported on an industrial lead
from Bill Tapper. Insty-Bit is a quick-change bit for
power drills. The company name is Weinhold Company and
the owner is Jim Weinhold. The 5,000 sq ft facility
would serve as the company's office and assembly areas
Page 2
• IDC MINUTES
APRIL 15, 1993
while the product is manufactured elsewhere. The
facility would employ six full-time people and the owner
is considering both options of ownership and lease.
5. CONSIDERATION TO REVIEW THE NSP LETTER FOR SUPPORT AND
AUTHORIZATION TO FORM A RAILROAD RESEARCH PARTNERSHIP
COMMITTEE.
Chairperson McVay reported NSP's railroad time is a long-term
commitment because of the need to transport heavy equipment.
NSP is willing to create a partnership with the community to
research upgrading the railroad bed and the Craw River Bridge.
Research would include funding and working cooperatively with
Burlington Northern and Minnesota Commercial RR. Total cost
estimated between $4 to $5 million. An alternative to
relicensing the nuclear plant is to repower with coal/natural
gas. Dr. Nemec suggested, "Putting the necessary people
together". IDC members who expressed interest to serve on the
committee were Ron Hoglund, Arve Grimsmo, Harvey Kendall, and
Ken Maus.
6. CONSIDERATION OF BRE BREAKFAST PLANS AND RSVP CONFIRMATIONS.
Koropchak reminded IDC members to wear their name tag and that
breakfast was planned to begin sharply at 7:30 a.m. RSVP's
were accepted from IDC members.
7. OTHER BUSINESS:
a) Chamber Announcements - Chamber Chairperson Micke
reminded members of the Chamber meeting slated for noon
today and that the scheduled program was "How to Hire a
Winning Team?"
b) Wright County Development Partnership - Koropchak
informed IDC members that organizational meetings
continue and the next meeting is scheduled for April 22
at 10:00 a.m. at Wright-Hennepin Electric in Maple Lake.
All are invited.
c) Star Recertificiation Peer Visit - Although, volunteers
were unable to attend, the meeting went well and the IDC
was complimented as a leader in the BRE program.
8. PRESENTATION BY CHARLES PFEFFER AND MIKE LAIR: DEVELOPMENT
GONCEPT PLANS FOR THE MONTICELLO COMMERCE CENTER AREA.
The presentation team consisted of Charles Pfeffer, Pfeffer
COMPANY, Inc., the marketing firm; Mike Gair, McCombs Frank
•
Page 3
• IDC MINUTES
APRIL 15, 1993
Roos Associates, Inc., the planner; and Dennis Taylor, Taylor
Land Surveyor, Inc., the surveyor.
Of the original property purchased from Farm Credit, the
easterly portion was sold for residential development and the
remaining 150 acres was the subject of this presentation. Mr.
Pfeffer told IDC members that the land was purchased on
speculation and the rezoning request is an attempt to shape a
product (land plan) which best serves the community, school,
and the developer.
Mr. Gair presented a historical background of the land use
plan for the 600-acre southeasterly quadrant of the City of
Monticello. Areas reviewed were pre-1992 zoning, the school
district's long-range plans, potential development of 1,500 to
1,800 homes, and storm sewer conceptual plan. The storm sewer
concept refined the ponding areas, however, the easterly flow
remains consistent.
Currently, the property bounded by I-94 to the north, Fallon
Avenue to the west, and School Campus to the south is zoned
Business Campus (BC) with the northeasterly corner zoned
Limited Business (B2) and Residential - Planned Unit
Development (R-PUD). Under the request, approximately 50~ of
the BC area would be rezoned to Light Industrial (I-1). The
high-quality BC would remain along both sides of Chelsea Road
(northerly area) and the proposed I-1 would be to the north of
the School Campus (southerly area). To accommodate the
transition between the School District and I-1, the concept
proposes the construction of a 3-4 foot berm with 3-4 foot
evergreen plantings. Secondly, under the request, the B2
would be rezoned to Highway Business (B3) and the R-PUD would
be rezoned with a combination of B3, B2, and R-PUD. Ponding
and park allowances were also included in the concept plan.
The planner stated that from a marketing prospective the
rezoning request allows for a greater diversity. The
planner's opposition to an entire BC zone was the not less
than 30~ green plot and the no more than 50~ of any wall shall
be of exposed metal or fiberglass finish standards.
The development plan outlined the extension of Dundas Road;
however, Mr. Gair reminded IDC members that the outlined road
was part of a concept plan only, and actual road alignment and
lot sizes would be determined as the need occurred.
On a preliminary basis, Jeff O'Neill viewed the over-all
proposed concept plan as addressing the original raised
• concerns. An area of concern still remaining; however, was
Page 4
IDC MINUTES
APRIL 15, 1993
the proposed B3 zone which Mr. O'Neill agreed may create
flexibility for the developer but may also fracture the
downtown area.
The interest of a future westerly interchange at I-94 and
County Road 118 has changed from positive in 1978, negative in
1991, and back to positive because of the additional interest
of a developer. Available Federal monies are administered by
the State. A plan extending the width of County Road 118
bridge, construction of a limited interchange, and
construction of a Fallon Avenue bridge are among the MDOT
priority list which is similiar to a future wish list.
IDC members were pleased with the seemingly cooperativeness
for establishment of a workable plan. With no further
questions and with no formal motion in favor or in opposition
of the proposed plan, IDC members were encouraged to contact
Mr. O'Neill or a city staff member regarding any comments to
the proposed plan. Chairperson McVay informed members that
Supt. Johnson has reviewed the proposed plan but has given no
formal approval.
. Upon application, the Monticello Commerce Center Rezoning
Request will be heard by the Planning Commission on Tuesday,
May 4. Prior to the commission meeting, staff will review the
plans in detail.
Chairperson McVay thanked Mr. Pfeffer, Mr. Gair, and Mr.
Taylor for their time and presentation.
9. ADJOURNMENT.
Mary Micke made a motion to adjourn the IDC meeting at 9:45
a.m. Seconded by Linda Mielke, the meeting adjourned.
~~ ~~
Ollie Koropchak, Execu ive Director
•
Page 5
BUSINESS RETENTION AND EXPANSION BREAKFAST SUMMARY
Thursday, April 22, 1993 - ?:30 a.m.
IDC MEMBERS: All but three were in attendance. (15)
CITY STAFF: All were in attendance. (5)
GUESTS: All were in attendance who responsed positively,
except, Richard Brotherton o f Steinwall, Inc. (5)
BRE INDUSTRIES: (17)
POSITIVE RESPONSES NOT IN ATTENDANCE
Sunny Fresh Joe Campbell
Jerry Rose ? Jerry Rose
Electro Indus Jon and Bob
NSP Plant Lon Waldinger Lon Waldinger
substitute Doug Nevinski
Jerry Zimmer
Genereux Bill and Barb Tapper
H-Window Steve Lemme Steve Lemme
Aroplax Jerry, Paul and Steve Schoen
FSI Ray Lilke Ray Lilke
Fingerhut Linda Allan Linda Allan
Lake Tool Eric Bondhus
Remmele Eng Joel LaValle Joel LaValle
SMM Barb and Mary Barger
ABK, Inc. Jerry Andrusko Jerry Andrusko
Bridgewater Bonnie Jacobs and
Sam Hutchinson
Tire Equip Ray Schmidt Ray Schmidt
Hoglund Trans Gordon and Jeanine Hoglund
Dahlheimer Di Greg Dahlheimer ? Greg Dahlheimer
Jones Mfg. John or Ed Jones ? John or Ed Jones
Rainbow Enter Andy Anderson ? Andy Anderson
1993 TOTAL 42 1992 TOTAL 41
• MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
TO: Jeff O'Neill
FROM: John D. McVay, Chair
DATE: May 3, 1993
SUBJECT: Monticello - Commerce Center Rezoning
It is recommended that the amount of green space requirement (30%)
be reviewed. A credit should be considered for area taken out as
holding ponds, storage areas and berm.
Or, it is recommended allowing the opportunity for greater
flexibility by allowing limited alterations to the adopted land use
plan, by allowing light industrial development fronting Fallon
Avenue between the school district property and Chelsea Road.
• These recommendations have not been approved by the IDC members as
a group. Therefore, these recommendations could be modified to
include the previous recommendations and\or additions.
CC
EDD Ollie Koropchak
IDC Members
•
•
1501 E. Broadway,
Monticello,
MN. 55362
April 21st, 1993
Ms. Ollie Koropchak
Economic Development Director,
City of Monticello,
250 E. Broadway,
Monticello, MN. 55362
Dear Ollie,
After many hours of discussion as both family members and
Trustees of the Maurice E. Hoglund Trusts we wish to advise you
as to our decision regarding the sale of our properties. It is
our intention to place the Hoglund land on the real estate market
to pursue a single sale for each of the respective 70, 15 and 2+
acre parcels. Our reasons for this decision are as follows:
It has become quite obvious that self-marketing would be a'
most time consuming project, and with the physical distance and
individual work responsibilities of the Trust members administration
• and negotiations of such a project would be extremely difficult.
After receiving legal and financial advice we have been
unable to visualize a situation that would provide financial
security, given the present facts, figures and projection of costs
to the Trust and it's members. Despite our understanding that
nothing can ever carry with it a full guarantee, we feel that our
lack of experience in industrial property development makes the
risk of economic loss simply too great. Experience has, however,
shown us that seldom have landowners ultimately benefited from
such development, whether due to fluctuating economic trends or
a lack of business acumen. Commencement of such endeavors, though
increasing property values on paper, subsequently increase tax
and interest liabilities on the un-sold properties, quickly eating
up any earlier profit. So many "unknowns" were not calculated in
the figures we have seen but it would appear that the land would
need to carry a less than competetive price in order to satisfy
an even moderate return.
We appreciate all your efforts over the past months, as
without them we would have been less able to weigh the issues that
led us to our decision. Hopefully there will be a developer
interested in pursuing this project, one who will have the personal
and financial resources to ensure success for the City of Monticello
and the property owner involved.
• Sincerly, //
k
Glady Hogl d family
pp Maurice Hoglund Trusts
•
MINNESOTA DEPARTMENT OF
TRADE AND ECONOMIC DEVELOPMENT
500 Metro Square
121 7th Place East
Saint Paul, Minnesota 55101-2146 USA
May 15 1993
•
Ms. Ollie Koropchak
Economic Devel. Director
City of Monticello
250 E. Broadway
Monticello, MN 55362
Dear Ms. Koropchak:
~.a~°°nomic pP ~,
L
i C P~ ~~
~ y A
~ 'II
~ ~ ~ ~
.F T.
:~" ,~:
0
J..
'•.....
Congratulations! The City of Monticello has been recertified as a Minnesota Star
City for 1993.
Your community must be very proud of its innovative Economic Development
Team! The goals are the catalyst that propels your City's productive job creation
strategies and enables a bright and promising future for the greater Monticello area.
For Monticello, 1992 was a real success in terms of job- creation and increasing
the tax base. Both new and existing firms made significant investments in the
community. These investments were assisted through appropriate use of financing
programs and incentives. Existing firms were recognized through newspaper articles and
well-attended community events. Monticello, as an All-Star City, has an excellent and
comprehensive economic development program.
The success of 1992 is likely to be repeated or exceeded in 1993. The 1993 plan
outlines aggressive strategies to retain and attract businesses. This plan includes active
strategies regarding labor force and job training/readiness issues as well as more
traditional financing tools. Also to be encouraged is Monticello's strong participation in
the Wright County and Quad-county networks.
Should your community need any technical assistance, DTED Regional Star Staff
is available to be of service to you.
Wishing you and your Star Organization continued success.
yY~v[
An Equal Opportunity Employer
Sincerely,
~_
infer L. E gh
Deputy Commissioner