IDC Agenda 10-21-1999• AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, October 21, 1999 - 7:00 a.m.
City Hall
MEMBERS: Chair Shelly Johnson, Vice Chair Tom Ollig, Don Smith, Kevin Doty, Tom
Lindquist, Bill Tapper, Dick Van Allen, Ken Maus, Bob Mosford, and Marianna
Khauv.
COUNCIL LIAISON: Mayor Roger Belsaas.
STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak.
GUEST: Mark Houge, Allied Companies, LLC, Real Estate Development.
1. Call to Order.
2. Welcome and Introduction of Guest.
3. Consideration to approve the September 23, 1999 IDC minutes.
4. Consideration of Updates:
a) Mayor Belsaas
b) Koropchak -Prospects and BRE
c) Smith, Ollig, or Van Allen -Marketing
5. Consideration of a report from the subcommittee for purpose of increasing the IDC
membership.
6. Continuation of a report on ticket sales and follow-up calls for the Industrial Banquet of
October 26.
7. Consideration of an update on the progress to actively pursue acquisition of land for
future industrial development.
8. Other Business.
9. Adjournment.
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MINUTES --._
MONTICELLO INDUSTRIAL DEVELOPME
Thursday, September 23, 1999 - 7:~____
--
City Hall
MEMBERS PRESENT: Chair Shelly Johnson, Vice Chair Tom Ollig, Don Smith, Kevin
Doty, Tom Lindquist, Bill Tapper, Ken Maus, and Jim Fleming.
MEMBERS ABSENT: Dick Van Allen and Bob Mosford.
COUNCIL LIAISON PRESENT: Mayor Roger Belsaas.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
Call to Order.
Chair Johnson called the IDC meeting to order at 7:00 a.m.
• 2. Consideration to approve the August 19, 1999 IDC minutes.
Bill Tapper made a motion to approve the August 19, 1999 IDC minutes. Tom Ollig
seconded the motion and with no corrections or additions, the minutes were approved as
written.
3. Consideration of Updates:
a) Mayor Belsaas - MOAA -Some parcels with no controversy are coming into the
city. Community Center is on schedule. Highway 25 on scheduled, anticipated
completion November 15, landscaping in spring. I-94 and Highway 25 entrance
ramp next spring. County Road 75 is 10 days to two weeks behind schedule.
Walnut Street to start next week, will be closed for a couple days. East Chelsea
Road completed this fall.
Safety concerns relating to the proposed diagonal parking and narrow street along
Walnut Street were raised. As a matter of ordinance, policy or approach, in the
past the City spend dollars to encourage wider streets and discourage diagonal
parking. The Fire Department also shared those safety concerns. Recognizing the
Walnut Street design may increase parking for the community center and then
refocusing of the objectives of the IDC, the meeting moved forward.
• b) Koropchak -Prospects and BRE -See Attachment A. In addition, Koropchak
• IDC Minutes - 9/23/99
reported Manufacturers Week is October 25-29, 1999. In September, she was
invited to participate in the US Bank, Monticello Office Customer Seminar, to
market the financial assistance programs offered to businesses by the city and other
governmental units.
c) Marketing -Smith reported the Marketing Subcommittee would be meeting
tomorrow morning at 7:30 a.m. Report next meeting.
4. Continuation to discuss need to increase the membership of the IDC and direction
thereafter.
Koropchak reviewed the current IDC membership list and noted the three members whose
terms expire in December 1999: Ken Maus, Bob Mosford, and Bill Tapper. Those
members were asked to consider membership for an additional three-year term.
Suggested occupations were listed to provide a diversified membership with an emphasis
on industry. A committee of Johnson, Doty, and Koropchak was appointed to research
candidates for IDC membership based on occupation with a goal of potential 12 voting
members by the first of the year. Committee to report progress at October IDC meeting.
5. Continuation of an update on the Industrial Banquet, October 26, and invitation/ticket
sales.
Koropchak reported that the Chamber plans to mail out the tickets and endorsement letter
based on the previous lists used by IDC members with the exception of Koropchak's list.
Mailing anticipated September 28. IDC members will receive from the Chamber Office a
list of businesses who have not responded for follow-up contact. Koropchak's list
includes the new industries, prospects, and city contacts. Chair Johnson was happy to
MC the program unless he was called away. The Chamber including options for
industrial displays.
6. Continuation of an update on the progress to actively pursue acquisition of land for future
industrial development.
Wolfsteller reported he and Koropchak met a second time with the Goeman group on
September 13. Rick estimated preliminary costs for development of infrastructure for the
southwest corridor to be in the range of 1.5 to 3 million dollars. However, he is waiting
for confirmation of those cost estimates from the city engineer consultant. The meeting
concluded with the Goeman group to develop funding method options for city
consideration.
Perhaps, the City should initiate discussion with the owners of the Gold Nugget property.
What are their plans? If they resubmit a request for a residential use and pending the
i
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IDC Minutes - 9/23/99
• present conflict, it maybe difficult to get a 4 to 1 vote from the Council for a land use
change from industrial to residential.
Item to continue on next IDC agenda.
7. Other Business.
Relative to the August 19 minutes, IDC members recognized the work demand caused by
the growth of the community; however, they inquired "What is being done to improve the
response time of the Building Department?" Some IDC members had heard similar
concerns. The Mayor responded "It's being addressed."
Adjournment.
The IDC meeting adjourned at 8:10 a.m. by a consensus.
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• Recorder
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• IDC Minutes 9/23/1999
ATTACHMENT A
PROSPECT AND BRE REPORT -SEPTEMBER 23, 1999
Prospects
Twin City Die Castings Company -Phase IA approximately 36,000 sq ft office/manufacturing
space completed by June 2000. Phase IB approximately 16,000 sq ft completed by June 2002.
Total 89 jobs, average hourly wage of $17.06 with average hourly benefits of $5.47. Estimated
project costs for real estate $2.4 million and machinery/equipment $5.5 million. Funding
applications underway, site and building plans anticipated submission date October 1. Plat
review at Planning Commission, October 5. The State grant application is for $500,000 which
means the City will retain the full principal and interest payback for the GMEF. Groundbreaking
sometime in early to mid November.
200,000-230,000 sq ft building -Ron Hoglund of the EDA and myself visited this company's
existing site in Albertville on September 9. The company is currently expanding its office space in
Albertville. This Sonic Courier and the handicap vans service. Keep open mind, move with
caution.
Refrigeration system company -Lead from NSP initially and then through Charlie Pfeffer. Met
with Charlie and general contractor on September 15. Prospect Team to visit existing facility in
Dayton on September 28. Relocation/expansion project, 50,000 sq ft with potential of up to
120,000 sq ft. 42 jobs currently, expects total employment of 80 within 10 years. Estimated
average hourly wages of $15 excluding benefits. Need to confirm. Monticello, Albertville, and
Ramsey. 8.5 acres to west of Twin City Die Castings. Same general contractor. Prospect
Team: Mayor Belsaas, Shelly Johnson, Kevin Doty, Darrin Lahr, and Koropchak.
100+ acre user - No update. Year 2000 decision.
Start-up Company -Lead Brad Barger. Design and assembly ofhigh-pressure coolants portable
and permanent. Lease space from Barger, 5,000 sq ft. Employment of 12 by November 1, 2000.
$10-$12 excluding benefits.
Heating/Air Condition - 5,000 sq ft, 2 acres. Lead Bob Mosford.
BRE
Aroplax Corporation -EDA approval for $100,000. losing expected early October. 14,000 sq
ft.
Tire Service Equipment Co -grading completed, waiting for contractors. 12,000 sq ft.
•
• IDC Minutes 9/23/1999
Midwest Graphics -Amendment to Private Redevelopment Contract not signed by Allied,
concerns relating to tax liability of up-front TIF and liability of wage/job goals. It is now planned
the Amended Contract to be assigned to Midwest Graphics subject to review of financial
statements and copy of adjusted lease agreement.
Lake Tool and Custom Canopy -Second letter notifying of HRA meeting to consider employing
attorney relative to default on contract. Non-payment of property taxes.
House Number 244 on Parade of Homes in Deephaven -Unique home with construction products
from Monticello. Cabinetry/hardware by Genereux Fine Wood Products and Westlund
Distribution, windows by H-Window, and steel by Standard Iron & Wire Works.
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• ITINERARY
SYSTEMATIC REFRIGERATION, INC.
CITY OF MONTICELLO
Thursday, October 7, 1999
GUESTS: Ted Mateski, President, Systematic Refrigeration, Inc.
Ed Sorgatz, Olson General Contractors, Inc.
10:45 AM -The following people meet at City Hall - 250 East Broadway.
Ted Mateski
Ed Sorgatz
Roger Belsaas, Mayor
Client Herbst, Council Member
Rick Wolfsteller, City Administrator
Kevin Doty, Industrial Development Committee
Ken Maddux, St. Cloud Technical College
Tim Mecklenburg, Wright County Technical Center
Ollie Korocphak, Economic Development Director
11:00 AM -Meet Pam Ringstad, High School Principal, to tour the industrial arts department of
the high school with follow-up discussion on technical training programs offered by the
representatives of the educational entities.
12:00 Noon -Lunch at Monte Club.
All the above with the addition of:
Tom Ollig, Industrial Development Committee Vice Chair
Ken Maus, Economic Development Authority
Brad Barger, Housing and Redevelopment Authority
1:00 PM -Tour of City and proposed site.
Ted, Ed, Clint, Rick, Kevin, and Ollie.
Proposed funding package based on assumptions.
Next step.
2:00 PM -Return to City Hall.
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October 13, 1999
Mr. Ted Mateski, President
Systematic Refrigeration, Inc.
11660 Troy Lane North
Dayton, MN 55369
Dear Ted:
Members of the Monticello Prospect Team enjoyed meeting you and Ed Sorgatz, Olson General
Contractors, Inc., during your site visit to the City of Monticello on October 7. Those of us, who
had the opportunity to visit the existing Systematic Refrigeration, Inc. facility, found your
manufacturing business to meet the goals and objectives of the City of Monticello.
After consideration and based on your plans to construct a 60,000 square foot office and
Also, the City of Monticello is prepared to offer a $100,0001ow-interest loan for real estate or
machinery/equipment.
manufacturing facility on approximately 8.5 acres of land and your plans to create the job and
wage goals as discussed, the City of Monticello is prepared to offer up-front Tax Increment
Financing (TIF) assistance in an amount not-to-exceed $300,000 for land and utility trunk fee
costs. This offer is subject to a credit-worthy analysis of the company financial statements and
execution of a Contract for Private Redevelopment including an Assessment Agreement and Tax
Increment Guarantee.
In addition to funding programs, the City of Monticello offers amenities to meet the needs and
enjoyment of your employees and their families. Enclosed is the business card of Kitty Baltos,
Community Center Director, as promised.
Should you have questions regarding the offers, please do not hesitate to call me at 612-271-
3208. It is my suggestion, our next step is to meet with the State Department of Trade and
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Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 • (612) 295-2711 • Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (612) 295-3170 • Fax: (612) 271-3272
MONTICELLO
• Mr. Mateski
October 13, 1999
Page 2
Economic Development, Lenny Kirscht, Charlie Pfeffer, a preferred lender, and the City Planning
and Building Officials.
I look forward to hearing from you.
Sincerely,
CITY OF MONTICELLO
Ollie Koropchak
Economic Development Director
c: Roger Belsaas, Mayor
Rick Wolfsteller, City Administrator
Housing and Redevelopment Authority File
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THE CENTER
R INNOVATION
AND ECONOMIC.
DEVELOPMENT
S'JC CLOYYUDTTECHNICAL
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1540 Northway Drive
St. Cloud, MN 56303-1240
320-654-5039
•-800-222-1009
fax 320-654-5568
St. Cloud Technical College
is accredited by the
Commission on Institutions
of Higher Education of the
North: Central Association
of Colleges and Schools
ADA Accessible Facility
Affirmative Action/
Equal Opportunity
l~Eator and Employer
October 13, 1999
Ollie Koropchak
Economic Development Director
250 East Broadway
P. O. Box 1147
Monticello, MN 55362-9245
Dear Ollie:
It's apparent that you have found the way to get the job done in
Monticello. It seems every time I drive to the Twin Cities down Highway
94 you have a new project under development. You have a great deal to
be proud of. Congratulations!
I appreciated the opportunity to meet with your client and others last
week. I also enjoyed the tour of the high school. Their support for
industrial skill opportunities was refreshing- -particularly at a time when
many high schools are cutting back in that area.
Warm regards,
__ /
Ken Maddux
Vice President
~ ~6~ude
OCT 15 1999 D