IDC Minutes 07-15-1999i MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, July 15, 1999 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Vice Chair Tom Ollig, Don Smith, Ken Maus, Kevin Doty, Bill
Tapper, and Bob Mosford.
MEMBERS ABSENT: Chair Shelly Johnson, Tom Lindquist, Dick Van Allen, and
Marianna Khauv.
COUNCIL LIAISON PRESENT: Roger Carlson.
EDA COMMISSIONER PRESENT: Ron Hoglund.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
GUESTS: Shawn Weinard, owner of Monticello Commerce Center, and Charlie Pfeffer,
Pfeffer Company, Inc.
1. Call to Order.
Vice Chair Ollig called the IDC meeting to order at 7:00 a.m. In lieu of a change in the
itinerary, all regular agenda items were tabled to the August IDC meeting. After
welcoming the guests, each individual in attendance introduced themselves.
The original purpose of the meeting was to discuss the purpose of the IDC and it's
relationship to the Monticello Commerce Center and Market Place properties. As events
changed, the more immediate purpose was to determine marketability of freeway exposure
land and purchase price.
Koropchak began by informing the group of the mission statement, purpose, and goals of
the IDC as outlined in their 1999 Action Statement, and spoke of the Council's
endorsement and dollars allocated for development of a marketing plan to promote
industrial development for the City of Monticello including development of the new
marketing brochure.
Koropchak then outlined the background and process for recruiting Twin City Die
Casting, Inc. to Monticello. Upon a call from Jay Eller, the City's marketing brochure
and Pfeffer marketing brochure were mailed to Jay. Both pieces market the freeway
property. Upon receiving, Jay came to Monticello and he and Koropchak toured the sites.
The company was looking at about 10 communities. Johnson, Murray, Carlson, and
IDC Minutes - 7/15/99
Koropchak toured their existing facility in southeast Minneapolis. Jay, two of the
business owners, Lenny Kirscht, and Mayor Belsaas visited the sites for a second time and
members of the Prospect Team joined for lunch at the Monte Club. On July 2, Jay
informed Koropchak that the City of Monticello was the selected and the company
requested freeway exposed property. The selection was subject to the City producing.
At a follow-up meeting on July 7 with Charlie Pfeffer, Dept of Trade & Economic
personnel, Staff, and Twin City Die Casting; Twin City Die Casting was informed that the
freeway exposed property was not on-the-market. Two alternative sites on the south side
of Chelsea Road were presented as options.
Charlie Pfeffer then made a presentation on the development the Monticello Commence
Center and Monticello Market Place properties. He told of the partnership created with
the school for the exchange or share of fill and pond development. Charlie described the
Monticello Commerce Center as follows: 27.50 acres north of Chelsea Road as I-lA,
another 14.50 acres north of Chelsea Road and most easterly as B2, and the remaining
66.93 acres lying south of Chelsea Road as I-lA. Private covenants exists such as
irrigation to the street side, small utilities under-ground, grade level of building, and
sometimes landscaping. Charlie informed the group the property lying to the north of
Chelsea Road is not being marketed at this time. This is preserved as an investment and
for ahigher-use development which will enhance the City's image. Charlie estimates
Monticello's trunk fees at $8,130 per acre compared to about $4,600 per acre in Rogers.
Charlie then turned to the number one site selection criteria for business development:
labor. Ina 10-mile radius of Monticello, the age group is young, 1 % minority, high
school graduates above national average, occupations about 50% split between
administrative and blue collar. Number of housing unit permits last year were 232 with
an average selling price of new and existing homes at $114,892. Using an example: For a
FHA mortgage of $130,000, 30 years, 7.75% interest rate, down payment of $7,755,
would require a monthly payment of $1,158.59. Debt is usually the issue when applying
for a mortgage. A community needs a mixed price-range of homes.
Charlie informed members of the development activity in Maple Grove and Rogers and of
their recent acquisition of another 100 acres in Rogers offthe freeway. In one year, prior
to acquisition of the Monticello Commerce Center, they developed a grand total of
923,378 sq ft. In the last three years, they developed a total of 2 million sq ft. We know
what we're doing. Selling price of land in Roger is $1.75 per sq ft and Maple Grove is
$3.00 per sq. ft. It appears the process for development is easier in other areas stated
Charlie. With the addition of roof-tops, business development will increase in Monticello.
The demand for business development has not yet reached the City of Monticello states
Pfeffer.
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Shawn Weinard was frank with the IDC stating he's been yanked around by the City.
Asked about consideration to se116-acres to Twin City Die Casting, he indicated the need
to converse with Charlie privately. He and Charlie have not always agreed, but he has
learned over time, Charlie knows his business.
After the guests departed, IDC briefly summarized the meeting: Any property is for sale
for a price. With no control of property, the City has no control of industrial
development. The immediate issue: Twin City Die Casting. Then: The future.
2. Adjournment.
The IDC meeting adjourned at 9:00 a.m.
C~~ ~C~ -~
Recorder
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