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IDC Agenda 12-16-1999• AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, December 16, 1999 - 7:00 a.m. City Hall - 250 East Broadway MEMBERS: Chair Shelly Johnson, Vice Chair Tom Ollig, Don Smith, Ken Maus, Kevin Doty, Tom Lindquist, Bill Tapper, Dick Van Allen, Bob Mosford, Don Roberts, Mike Benedetto, Dan Carlson, and Marianna Khauv. COUNCIL LIAISON: Mayor Roger Belsaas. STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak. GUESTS: Bret Weiss, WSB, Inc. Brad Barger, Marketing Committee/HRA Darrin Lahr, Marketing Committee/HRA 1. Call to Order. 2. Consideration to approve the November 18, 1999 IDC minutes. 3. Consideration of updates: a) Mayor Belsaas -Mayor's report. b) Koropchak -Prospect and BRE 4. Consideration to hear recommendation made by the Marketing Committee - Ollig, Lahr, and Barger. 5. Consideration of an update on the progress to actively pursue acquisition of land for future industrial development. a) Wolfsteller -Status of properties and negotiations for Chadwick/Goeman property and Gold Nugget property. b) Weiss -Planned route of infrastructure development or upgrade, estimated costs, and time schedule to develop Chadwick/Goeman and Gold Nugget properties. c) Summarize and recommendation. 6. Consideration of appreciation and thanks to IDC Member Ken Maus. 7. Other Business. a) John Chadwick, Chadwick Group, Inc., will be at the January IDC meeting. 8. Adjournment. Next IDC meeting of January 20, 2000, will be in the Academy Room which is located on the east-end corridor of the Community Center by City Hall. • MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, November 18, 1999 - 7:00 a.m. Electro Industries - 2150 West River Street MEMBERS PRESENT: Vice Chair Tom Ollig, Don Smith, Kevin Doty, Tom Lindquist, Bill Tapper, Don Roberts, Mike Benedetto, Dan Carlson, and Marianna Khauv. MEMBERS ABSENT: Chair Shelly Johnson, Dick Van Allen, Ken Maus, and Bob Mosford. COUNCIL LIAISON ABSENT: Mayor Roger Belsaas. STAFF PRESENT: Ollie Koropchak. Call to Order. Vice Chair Ollig called the IDC meeting to order at 7:07 a.m. 2. Welcome and introduction of new IDC members. Vice Chair Ollig welcomed new IDC members Roberts, Benedetto, and Carlson; thereafter, each member introduced themselves and told of their business association. 3. Recognition of Business Retention and Replacement Proiect. Vice Chair Ollig called on Bill and Merrlyn Seefeldt, owners of Electro Industries, and presented them with a plaque stating the IDC and City of Monticello were pleased Electro Industries elected to remain in Monticello and replace their facility following their fire. 4. Tour of Electro Industries by Bill and Merrlyn Seefeldt. The Seefeldts informed the group that the fire occurred on February 11, 1998, and within two weeks they were up and running again. Things they learned were the importance of fire doors and wall separations and the process for determining replacement costs. Now back in production, they continue to recall items lost in the fire. One benefit of the replacement building is the new building was constructed in a westerly direction setting up for future building expansions to tie into the existing facility enhancing the production flow and increasing production efficiency. t IDC Minutes - 11/18/99 • 5. Consideration to a rove the October 21 1999 IDC minutes. Tom Lindquist made a motion to approve the October 21, 1999 IDC minutes. Seconded by Kevin Doty and with no corrections or additions, the minutes were approved as written. 6. Consideration of Updates: a) Mayor Belsaas -Absent. b) Koropchak -See Attachment A c) Smith -Don reported that the Marketing Committee will be meeting tomorrow morning at 7:30 a.m. to continue discussion relating to development of a booth for trade shows and Koropchak will report on meeting with Greg Bergeron. Additionally, he informed the group of the success of the Marketing Committee's booth at Expo 99 where products manufactured in Monticello were displayed. Brochures continue to be mailed, foil e ha s the first thing fornthe Marke ngak added after meeting with Bergeron, p p Committee, IDC and City Council to do is to develop a consensus of "What are we marketing?" 7, Consideration to summarize the 1999 Industrial Ban uet for u ose of feedback. • of revenues and The Chamber Office submitted a list of attendees and summary expenditures. The attendance and net profit was less than previous years. It was noted the lack of representation by industries. IDC hambar na ~ M Y be ~esults of changed d the need for something new. Speaker somew g roles of Chamber and IDC and perhaps in the future need to re-look at those roles. 8. future industrial development. Koropchak reported Chadwick, Bowers, Wolfsteller and herself continue negotiations to swap the City/Remmele property for the Chadwick/Goeman property. Athree-tiered approach to establish land prices with consideration of infrastructure development costs are being discussed. Mining rights are requested by Chadwick/Bowers. Chadwick has requested to be on the IDC agenda. Members extended an invitation to Chadwick to attend the December 16 meeting. Koropchak said her concerns voiced at the Chadwick meetings were: Is there sufficient land available for development after mining rights, wetlands, power lines, and roadways? What are costs for development and timing for completion of infrastructure? IDC members asked of the costs and timing to development or upgrade infrastructure to the Gold Nugget property. Who is the owner? Gold Nugget or Shawn Weinand. Koropchak reported Wolfsteller has contacted Horaeeooe1Gol IDC Nugget of intent to develop property or interest to sell the Gold Nugget p p Y~ _ 2 • IDC Minutes - 11/18/99 suggested obtaining the name of the owner from the County. Roberts informed members with his 18 years as an employee of Cargill and participation on sight selection teams, communities have been dropped from sight selection lists due to infrastructure not in place. 9. Other Business. IDC members suggested scheduling three to four combined IDC meetings and industrial tours for year 2000. 10. Adjournment. Tom Lindquist made a motion to adjourn the IDC meeting. Seconded by Don Smith, the IDC meeting adjourned at 8:50 a.m. ~~ U Ollie Koropchak, Recorder ATTACHMENT A PROSPECT AND BRE REPORT -NOVEMBER 17, 1999 Prospects Systematic Refrigeration, Inc -Included in your agenda pack was a copy of a letter from Ted Mateski stating their decision to locate in the City of Ramsey. A big "thank you" to community members who participated in the recruitment process. Our recruitment/sales process was successful; however, we fell short on the public finance offer. The City of Ramsey offered 6.5 acres of free land and an option on additional land with little or no holding costs for future expansion. The benefits to Monticello, we develop a relationship with an industrial business leader and general contractor who were both very impressed with Monticello and will not hesitate to suggest the City of Monticello as a location for industrial development. The company initially plans to construct a 60,000 sq ft building with plans to expand up to 120,000 sq ft and then 180,000 sq ft. Initially 50 jobs and growth as company expanded. Twin City Die Castings Company -November 17, the company and Pfeffer plan to close on the land acquisition. The building and site plans are scheduled for submission to the Building Department on Monday, November 22, for site review on November 23. Jeff, Fred, and Ollie met with the general contractor, architect, engineer, and Ellers on November 5. Construction is expected to commence on or by December 1, 1999. Due to the traveling conflicts of the company owners and Ellers, the decision was to not hold a ground breaking and reception but to hold an open-house/ribbon cutting reception upon completion of the facility scheduled for completion by June 1, 2000. $460,000 grant application for M&E to the State of Minnesota from the City of Monticello being submitted end of November. Contacted Senator Ourada and Representative Olson for endorsement. News release to EDAM from Ollie and to Mpls Tribune and St. Paul Pioneer from Jay. The Pressures On -Start-up company negotiating lease for 5,000 sq ft space owned by Brad Barger and Jim Harwood. Designs and assembles high-pressure coolants for machine shops. Company still looking for financing. Potential 60,000-80,000 sq ft building -The Prospect Team of Mayor Belsaas, Kevin Doty, Ron Hoglund, Bob Murray, and Koropchak visited with Plymouth manufacturers on October 27. Attached in your agenda was a copy of a follow-up letter both thanking and attempting to schedule a Monticello visit. Voice mail -November 2, November 5 does not work. Message: Nov 3, Nov 5, and Nov 17. Production of industrial scales. 25,000 sq ft building -Utility company, recognizable name, high-tech fiber optic. Need for conditional use permit -outdoor storage or parking of equipment. Working with Winkelman Builders and Pfeffer, suggested industrial zoned location at School Blvd and County Road 117. No TIF, not manufacturing facility. Machine Shop -Meeting with local individual on November 24. Site location, building size and lot size, financing (TIF?)(up-front versus pay-as-you-go). Looking at Big Lake, land for $1.00. 10,000 sq ft for own use, looking perhaps 60,000 with 50,000 sq ft for machine shop lease. Comparative shopping. 100+ acre user -Called Bruce Maus for update on November 17. 100 acre user -Contacted company for update, November 17. BRE Aroplax Corporation -Grading underway. GMEF loan not closed. Tire Service Equipment Mfg -Steel erecting expected week of November 8. Two other industries considering major expansion plans. Manufacturer's Week - As part of manufacturer's week, the State Certificate of Commendation was mailed to each industry. Call from Fingerhut-Monticello relating how received, if all industries, and greatly appreciated. Next year provide cover letter. WC Workforce Development Subcommittee -First meeting November 23 in Buffalo. Expo Booth -Letter of appreciation to businesses going out. Booth received marks of excellent from youth to elder. Winner of night at Rand Historic Mansion, Jim and Lois Miller. Thanks to Brad and Darrin for helping to carry products to van and Lori and Wanda for bringing products to school. Suburban Mfg, H-Window, B&B Metal Stamping, Remmele, Lake Tool, WIHA Tools, Aroplax, Standard Iron & Wire Works, Rainbow Enterprises, and Twin City Die Castings provided products for display and NSP provided Redi-Kilowatt night lights for give-away and Sunny Fresh provided brochures.