IDC Minutes 03-18-1999• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March 18, 1999 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chair Shelly Johnson, Don Smith, Ken Maus, Bill Tapper, Tom
Lindquist, Bob Mosford, and Marianna Khauv.
MEMBERS ABSENT: Vice Chair Tom Ollig, Kevin Doty, and Dick Van Allen.
COUNCIL, LIAISON ABSENT: Mayor Roger Belsaas.
CITY STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
GUEST: Bret Weiss, WSB, Inc.
Call to Order.
2. Consideration to approve the February 18 1999 IDC minutes.
Tom Lindquist made a motion to approve the February 18, 1999 IDC minutes. Seconded
• by Bob Mosford and with no corrections or additions, the minutes were approved as
written.
3. Consideration of activity reports:
a) In lieu of the absence of the Mayor, Koropchak informed IDC members that the
Planning Commission and City Council agreed to a land use plan similar to the IDC's
recommendation of February 18. The exception to the IDC recommendation was the
property lying east of Silver Springs Golf Course, north of the proposed Chelsea Road,
and abutting I-94, this the Planning and Council agreed to revert from industrial to
residential. Based on the City Planner's recommendation, the proposed commercial strip
parallel to South Trunk Highway 25 (Gold Nugget parcel) to be at a depth of 300-400 ft.
On March 8, the Council approved the land use plan as agreed upon between the Planning
Commission and City Council. On March 22, the Council will ratify its position of March
8 through the adoption of a resolution for submission to the Apri17 MOAA meeting.
b) Executive Director's report -The IDC accepted the attached report from Koropchak.
4. Consideration of a report on the acquisition and development of public-owned industrial
parks in Big Lake and Buffalo and the economic impact to the city (subsidy) and the
developer (incentive).
At the January IDC meeting, Koropchak was directed to research incentives offered by the
• neighbor communities of Big Lake and Buffalo. Attached is Koropchak's research. In
• IDC Minutes
March 18, 1999
summary, the two communities purchased land at a fair market value, constructed the
infrastructure, and give-away developed lots for $1. It was a conscious decision by those
communities for purpose of increasing the local tax base. Big Lake and Buffalo do not
use TIF to assist a business; therefore, the city is not subject to a local match or penalty
and job/wage goal reporting. Big Lake in the future may use TIF to recover
infrastructure development costs.
Taking the information from the neighboring communities, the fee study as reported to the
IDC by Fred Patch in August, and assuming the construction of a 30,000 sq ft building;
Koropchak compared the three communities from the perspective of annual taxes,
developer's costs, subsidy by cities, and developer's advantage.
Using the illustration of the Midwest Graphics projection, IDC members felt Monticello's
total package of $181,000 and $19,223 write-down of trunk storm sewer fee appeared to
be a better deal than Buffalo or Big Lake. In other words, it's all in how the deal is
packaged. Koropchak was unsure as the $181,000 is not up-front dollars (not equity) but
reimbursed dollars over time, therefore, the company needs to borrow the money at a time
they are short-on-cash plus pay a $5,000 fee. Additionally, Koropchak sees actual dollars
invested by the City of Monticello as greater than those invested by Buffalo and Big Lake
i because of the higher land costs and the local penalty required for use of TIF.
IDC members found the incentive information of interest and worth further discussion;
however, in lieu of time, they agreed to table for further discussion.
5. Consideration to hear the trunk fee analysis for sanitary sewer and water and to determine
position of the IDC for recommendation to the City Council meeting of March 22.
In lieu of time and members departing, Chair Johnson suggested to table the presentation
until the April IDC meeting and apologized to Bret Weiss. Members agreed to table the
presentation. The analysis will not appear on the Council agenda of March 22.
6. Consideration to elect or appoint an individual to record and prepare IDC minutes.
O'Neill reported that Nancy Whalen was not interested in the appointment; however,
O'Neill reported Dawn Grossinger expressed interest based on Kitty Baltos' blessing. The
item was tabled until the April IDC meeting.
7. Other Business.
None.
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• IDC Minutes
March 18, 1999
Adjournment.
The IDC meeting adjourned at 8:30 a.m.
Recorder
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