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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