IDC Minutes 04-15-1999• 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.
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 meetin~Lof Apri126.
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 corridor 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.
Consideration to elect or point 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 retort on the acquisition 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 member~y 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 the 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,~rlobbying the Council was one suggestion.
• KoropchaJ~c asked members still in attendance to contact assigned industries as a reminder
of the breakfast next Thursday. Koropchak will complete the list.
8. Adjov mment.
The IDC meeting adjourned at 8:45 a.m.
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Rec'~;order
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