IDC Agenda 05-20-1999•
AGENDA
MONTICELLO INDUSTRIAL DEVELOPMENT COMIVIITTEE
Thursday, May 20, 1999 - 7:00 a.m.
City Hall
MEMBERS: Chair Shelley Johnson, Vice Chair Tom Ollig, Don Smith, Kevin Doty, Tom
Lindquist, Bill Tapper, Ken Maus, Dick Van Allen, Bob Mosford, and Marianna
Khauv.
STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak.
1. Call to Order.
2. Consideration to approve the April 15, 1999 IDC minutes.
3. Consideration of Updates:
a) City Council - Mayor Belsaas - MOAA and other.
b) Prospects - Koropchak.
i 4. Consideration to review city progress for acquisition of Goeman property and swap of
city/Chadwick properties for recommendation to City Council.
5. Consideration to discuss membership attendance at IDC meeting and its importance.
6. Consideration of a follow-up on the Industrial Breakfast of April 22.
7. Consideration of setting date for Industrial Banquet and ideas for speaker.
8. Other Business.
9. Adjournment.
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• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, April 15, 1999 - 7:00 a. m.
City Hall
MEMBERS PRESENT: Chair Shelley Johnson, Vice Chair Tom Ollig, Don Smith, Kevin
Doty, Tom Lindquist, Bill Tapper, Dick Van Allen, and Marianna
Khauv.
MEMBERS ABSENT: Ken Maus and Bob Mosford.
COUNCIL LIAISON ABSENT: Mayor Roger Belsaas.
STAFF PRESENT: Ollie Koropchak.
GUEST: Bret Weiss, WSB, Inc.
Call to Order.
Chair Johnson called the IDC meeting to order at 7:00 a.m.
2. Consideration to approve the March 18 1999 IDC minutes
Tom Ollig made a motion to approve the March 18, 1999 IDC minutes. Seconded by
Kevin Doty and with no corrections or additions, the minutes were approved as written.
3. Consideration of Reports:
a) Mayor Belsaas -absent.
b) Koropchak - In the absence of Mayor Belsaas, Koropchak noted her concern with the
proposed amount of residential land use (yellow) compared to industrial land use (blue)
based on the Council's resolution to the MOAA. Unlike the IDC's recommendation, the
Council resolution recommended the 80-acre parcel along I-94 east of the Silver Springs
Golf Course as residential. Under the resolution, 180-acres was designated as industrial
land with development potential. Other industrial designation is further west with limited
development potential without an interchange. IDC members felt the said parcel was
undesirable for housing because of the noise level along I-94. Kevin Doty made a motion
recommending the property lying east of Silver Springs Golf Course, north of proposed
Chelsea Road, and abutting I-94 be retained for industrial use. Dick Van Allen seconded
the motion and with no further discussion, the motion passed unanimously. The IDC
recommended a letter be drafted outlining the IDC motion and reviewed by the IDC Chair
prior to submission to the City Council. Concerns were raised relating to one property
owner controlling the majority of industrial land.
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• IDC Minutes - 4/15/99
Prospects- a) 175,000 sq ft user. 172 jobs within 2 years. Wage range $10-$16 per hour
without benefits. 20 acres with 5-6 acres as secured area. Wolfsteller and Koropchak
scheduled to meet with Charlie Pfeffer on Tuesday, May 20. Business request freeway
exposure.
b) 75-100 acre user -Premature for company to proceed with site selection. Request
freeway exposure.
c) 100+ acre user -Call from creditable real estate broker as manufacturing user. Did not
request freeway exposure. Preliminary site selection information requested.
d) Scheduled to attend the Manufacturing Engineer Trade Show at Minneapolis
Convention, May 4, 5, or 6. Mission to observe the trade show.
4. Consideration to hear the trunk fee analysis for sanitary sewer and water and to determine
a position of the IDC for recommendation to the City Council meetins of April 26.
Bret Weiss, WSB, Inc., gave a history of the three methods used in Monticello to collect
fees for utility systems: user fees, trunk fees, and connection fees. The completed analysis
deals with the trunk fees for sanitary sewer and water. The Sanitary Sewer would serve
the Southwest comdor off County Road 39 and the interceptor would develop southerly
upon development. The force main to serve the area is located at Minnesota Street. In
order to cash flow the proposed sanitary sewer expenditures over 40 years, the trunk fee is
• proposed at $1,786 per acre with on a 4% annual increase.
Water mains are cheaper to construct. An additional water tower at about $1,800,000 and
5 wells at about $400,000 each will be needed in the next 40 years. Currently, the City
has a ground reservoir along Chelsea Road and tower on Monti Hill. The downtown
water tower is back up system only. In order to cash flow the proposed water
expenditures over 40 years, the trunk fee is proposed at $905 per acre or $500 per house.
Estimated to increase annually at 4%.
The city's capacity appears OK for now; however, as development occurs at the proposed
Gold Nugget site a new lift station will be necessary some place. Bret indicated a public
meeting was held relating to the analysis after letters were mailed, no one showed up.
Bret responded debt loads in the amount of $3 million are not uncommon.
The IDC members agreed it was better to invest now for future sanitary sewer and water
needs.
5. Consideration to elect or appoint an individual to record and prepare the IDC minutes.
Koropchak reported the Building Department Clerk was interested in recording and
preparing the IDC minutes; however, she resigned. This will be considered upon
• replacement.
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• IDC Minutes - 4/15/99
6. Consideration of a report on the acquisituon and development of publicly-owned industrial
parks in Big Lake and Buffalo and the economic impact to the city and developer.
Tapper stated he felt the IDC memberc~ missed Koropchak's point that under the TIF
reimbursement finance method used by the city today, the company must borrow the
money for the land. If a City is marketing to a 3M companies, no problem; however, for a
smaller business like Genereux the up-front finance method for land write-down was used
as equity and made the project doable. Additionally, Koropchak had noted the simplicity
of publicly-owned transaction of thr; Big Lake and Buffalo. Members requested at the
next meeting discussion or an updaate of the IDC's suggestion for the City tb swap
and purchase property for industrial development.
7. Other Business.
Tapper suggested the topic of~'IDC meeting attendance and staying through adjournment
be placed on the next agenda.
Chamber Chair Khau~~ asked IDC members how the Chamber might support the IDC?
Assist the IDC ir,.~lobbying the Council was one suggestion.
• KoropchaJ~{ asked members still in attendance to contact assigned industries as a reminder
of the breakfast next Thursday. Koropchak will complete the list.
8. Adio inment.
The ;+IDC meeting adjourned at 8:45 a.m.
o~~
Recorder
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IDC Agenda - 5/20/99
3b. Consideration of Executive Director's Report.
a) State Auditor's request -The State Auditor asked for the TIF Plan, modified TIF
Plan and appropriate resolution for TIF District Nos. 1-7 (NAWCO) and 1-8
(NSP). The request is due to district decertification and we foresee no problems.
The requested information was submitted.
b) Project Updates:
200,000 sq ft building/20 acres -Developer working on financing, still very much
interested in Monticello. City Council o.k. with jobs and wages. Perhaps on June
HRA agenda. Landowners prefer to sell the Monticello Commerce Center
property south of Chelsea first, the developer first choice is property north of
Chelsea (freeway exposure). Rick and I met with Charlie Pheffer to bring him into
the proposed project. 1999 project. Per broker/contractor.
75/100 acre industrial request -The city prospect team has not visited this
company. The business contact person indicated new company data showed
development may be premature. Request freeway exposure. 2000 project.
• 100+ acre request -Working with a creditable real estate broker. Monticello made
the short list in the site selection process for this manufacturing user. On April 26,
Council committed to physically having the infrastructure in place to the SW
corridor site. The broker visited Monticello on Tuesday, May 11, and he, Jeff, and
myself toured the southwest site. Upon a request to see the existing industrial
park, the broker requested information of the 80/90-acre site on the north and
south side of Chelsea Road marketed by Charlie Pfeffer. We also drove by the
220-acre Gold Nugget parcel. Upon hearing the unresolved issue of the land use
designation between the MOAA, Township, and Council and the land use
designation position of the City Planner, majority of Council, and IDC; the broker
and his client were not interested in proceeding against the city's professional
planning position and appeared not interested in the property. The broker
mentioned the importance of good planning and proper transitional buffering
between residential and industrial uses. Monticello is the smallest community on
the short list and remains so because of it's location along I-94 between Mpls. and
St.Cloud. Population draw necessary for employment base. The company did not
request freeway exposure. Remember, a couple of years ago, the IDC's efforts to
communicate to the Council and Staff the importance of being "ready for
business." Due to the fact I needed support from the City Council relating to
Council's willingness to provide infrastructure to the southwest site by Fall, the
site selection interest became public knowledge. I was reminded by the broker on
Tuesday about the importance of confidentiality because as the word gets out the
. price of land increases knowing the limited sites available with 100+ acres. The
broker's response to dealing with public versus privately-owned property: He has
• IDC Agenda - 5/20/99
worked with both, public-owned property controls scheduling and price. I will not
hear from the broker until after June 1. I received no information about his client
nor the proposed development. Appear to be looking to create a partnership with
a city. See attached letters. Year 2000 project.
35,000-40,000 sq ft office and manufacturing building (Phase I)/7 acres -Met with
this die cast and machining company on May 5. 75 jobs within two years. $10 to
$16 per hour without benefits. Phase II a second 35,000 sq ft and total of 200
jobs. Prospect team of Shelly Johnson, Roger Carlson, Bob Murray, and myself
visited the Minneapolis facility on May 12. Looking at Big Lake, Becker, Maple
Grove, Osseo, and Anoka and a couple of Wisconsin communities. Request TIF
and other financing. Job training. This is an expansion project. Community
receptiveness important. Scheduled call for Monday, May 17, to proceed. 1999
project. Per phone call.
c) Manufacturing Engineers Trade Show - I attended the Trade Show in the
Minneapolis Convention Center on May 4. I was impressed by its size and the
high technology of the industry. The only booth of marketing efforts that I saw
was from the State of Wisconsin Economic Development. There was a table with
• some marketing information from two Minnesota communities. I left some of our
marketing brochures. I collected some business cards with the intent to mail
brochures. My mission from the marketing group was to attend for purpose of
observation.
d) Attached copy of letter to City Council relating to April IDC motion.
e) Manufacturer of refrigeration systems - 50,000 sq ft, 50-60 new jobs in five years,
7-10 acres (Phase I). Phase II, an additional 50,000 sq ft. This is a relocation,
currently employ 42. Looking to lease or purchase afacility/site. Lead from NSP.
f) I-2 user - 2/3 acres, foreign company, 45 employees. Lead from NSP.
Apri128, 1999
Mr. Bruce Maus
Corporate Real Estate
750 South Plaza Drive
Suite 201
Mendota Heights, MN 55120
Re: Request for 100+ acres of industrial land
Dear Bruce:
On behalf of the City of Monticello, we appreciate the opportunity to submit a response to the request from your
manufacturing client seeking 100+ acres of industrial land. At any time during the site selection process, please do
not hesitate to contact me at 612-271-3208 for additional information.
In response to your request of Apri123, enclosed is Attachment A which identifies two contiguous parcels which
total in excess of 100 acres. The attached maps are color-coded consistent with Attachment A. Lastly, attached is
• a letter from the city consultant engineer addressing the ability to physically serve the 100+ acres with
infrastructure by fa112000. The two parcels have been approved for industrial land use within the Monticello
Comprehensive Plan and are identified for industrial land use in the draft copy of the Monticello Orderly
Annexation Plan.
Bruce, a little background about the two parcels. Although the City of Monticello currently has some industrial
land available within the city limits, the Industrial Development Committee (IDC) has encouraged and prompted
the City to obtain appraisals of the two said parcels. The IDC works to promote industrial development on behalf
of the City of Monticello. They foresee the need for large contiguous industrial acreage and the need to
continuously increase the tax base of Monticello.
The City of Monticello invites you and your client to visit the City of Monticello and to see first-hand the planned
growth underway, to hear of the scheduled road improvements for both 1999 and 2000, and to discuss your client's
proposed project. I will call you within a week to keep the lines of communication open. The City of Monticello is
OPEN for business.
Sincerely,
CITY OF MONTICELLO
~~~ \~CR a ~~~
Ollie Koropchak
Economic Development Director
• Attachments
c: File
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
May 11, 1999
Mr. Bruce A. Maus
Corporate Real Estate
750 South Plaza Drive, Suite 201
Mendota Heights, MN 55120
Dear Bruce:
It was my pleasure to meet with you on Tuesday. Again, I restate, "The City of Monticello is
looking for an opportunity to create a partnership with a qualifying manufacturing company for
industrial development."
For your information, the Industrial Development Committee will address and encourage moving
• forward with the purchase of the two pazcels of land in the southwest comdor at their May 20
meeting. As mentioned earlier, the Council committed to providing infrastructure to the site by
Fa112000 and the City's Comprehensive Plan and the Orderly Annexation Area Boazd agree on an
industrial land use for the southwest site.
Secondly, I have enclosed a brochure of the property in which Charlie Pfeffer is marketing.
Please note, the Monticello Commerce Center consists of two azeas: 66.9 acres to the south of
Chelsea Road which is zoned I1 a and 40.2 acres to the north of Chelsea Road which is zoned I1 a
and B2. About 25 acres and 15 acres, respectively.
Lastly, we did tour the 220-acre site along Trunk Highway 25; however, it was my understanding
this was not your preference.
I look forwazd to hearing from you after the lst of June. If I can be of further assistance, please
do not hesitate to call me at 612-271-3208. The City of Monticello is open for business.
Sincerely,
CITY OF MONTICELLO
~~. ~c~Z u-~e~~.
Ollie Koropchak
• ~conomic Development Director
i~ivuuceuv may nail, GJU t:. Broadway, YO 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
. Monticello Industrial Development Committee
April 22, 1999
Re: MOAA Land Use Plan
Dear Members of the MOAA and City Council:
After hearing an update of City Council or MOAA discussions for consideration of the property
lying east of Silver Springs Golf Course, north of the proposed Chelsea Road, and abutting I-94
for residential use; the Industrial Development Committee (IDC) on April 15, 1999, passed a
motion recommending the property lying east of Silver Springs Golf Course, north of the
• proposed Chelsea Road, and abutting I-94 be retained for industrial use. In other words, the
April 15 IDC motion reaffirmed the IDC's February position: The John Chadwick and Goeman
Investors properties of approximately 185 acres for industrial use ;the property lying east of
Silver Springs Golf Course, north of the proposed Chelsea Road, and abutting I-94 for industrial
use with a planned buffer to the easterly existing residential property; the property lying in the
area of the Orchard Road and abutting I-94 for industrial use as proposed; and the Gold Nugget
property of approximately 220 acres for residential use with an area running parallel to South
Highway 25 for commercial use.
The rational of the April IDC motion was the land abutting I-94 was better suited for industrial
use (freeway exposure is an asset) rather than residential use (freeway noise is a liability).
Respectfully submitted by the Monticello IDC.
c: IDC File
Drafted by Ollie Koropchak, Economic Development Director.
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