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IDC Minutes 01-21-1993. MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, January 21, 1993 - 7:00 a.m. City Hall MEMBERS PRESENT: Chairperson Shelley Johnson, Treasurer Ron Hoglund, Arve Grimsmo, Jay Morrell, Harvey Kendall, Ken Maus, Dennis Taylor, Kevin Doty, Tom Lindquist, Steven Lemme, Merrlyn Seefeldt, Cyndie Johnson, Mary Micke, and Dr. Glenn Nemec. MEMBERS ABSENT: Vice-Chairperson Don Smith, Lowell Schrupp, John McVay, Dave Peterson, Linda Mielke, and Candy Benoit. STAFF PRESENT: Ollie Koropchak. STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill. 1. CALL TO ORDER. Chairperson Johnson called the IDC meeting to order at 7:00 a.m. and welcomed new member Dr. Nemec, Chamber Vice- • President. Additionally, congratulations were extended to Dr. Nemec for his appointment of "Chief of Staff" at the Monticello-Big Lake Community Hospital. 2. CONSIDERATION TO APPROVE THE DECEMBER 17, 1992 IDC MINUTES. Merrlyn Seefeldt made a motion to approve the December 17, 1992 IDC minutes, seconded by Arve Grimsmo. With no corrections or additions, the IDC minutes were approved as written. 3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT. Treasurer Hoglund reported the 1992 contributions of $6,200 from the City and $2,800 from the Chamber were received and deposited for a Metropolitan Federal balance of $5,249.74 and a Marquette balance of $12,772.68. Total IDC balance of $18,022.42. Two of the three Business Media and three of the six Minnesota Real Estate Journal advertisements have been paid. Mary Micke made a motion to accept the IDC financial report as given, seconded by Tom Lindquist. With no corrections or additions, the monthly financial report was accepted and filed. • Page 1 • IDC MINUTES JANUARY 21, 1993 4. CONSIDERATION OF PROSPECT UPDATES: a) Custom Canopy - City staff has met twice with Jim Beyl, company project manager, and reviewed the building plans. At the January 15 meeting, staff suggested the HRA provide TIF assistance to enhance a 50A6 wall covering of brick, wood, stone, or architectural concrete along the front ( Dundas ) and the length ( Fallon) on the 9 , 320 sq ft proposed production/office structure. A conditional use permit would be necessary to allow no curbing in the area designated for future building expansion. The building was designed for the corner lot at Fallon and Dundas in the Oakwood Industrial Park. No formal process has begun on the financial approval as the preliminary GMEF application or TIF Letter of Intent have not been completed or returned. Construction plans are for 1993 and the financial institution is the Elk River State Bank. b) All-Temp Distribution - A preliminary meeting discussing financial assistance options was held between Mr. John Holman and Koropchak on December 29. On January 13, Mr. Holman met with Jeff O'Neill, John Simola, Gary Anderson, Koropchak, and Charlie Anderson, NSP. The proposed • 50,000 sq ft refrigerated warehouse project has earmarked rail as a desire. City staff discussed public improvements necessary to develop the Hoglund property and Mr. Anderson told the group that NSP's primary need for the branch rail is for de-regulation. Currently, Burlington Northern is negotiating the sale of the branch operational rights to Minnesota Commercial Railroad. Mr. Holman would like a commitment on future rail availability. Total TIF assistance could be $150,000, building construction estimated at $2,750,000, and the estimated market value for land and building at $1,050,000. Mr. Holman awaits customer proposals prior to any site location decision. The IDC supported the need to keep an eye on the existence of the railroad and suggested a meeting between NSP, BN, and city staff. Koropchak informed IDC members of Mr. Holman's reference to the ad and the article on Monticello in the Minnesota Real Estate Journal. And he commented on the fine publication of the Monticello Community Guide. c} Wilson Tool International - Koropchak spoke with Mr. Emery around the first of January. The company continues to research and compare community development costs and anticipates community notification within two to three weeks. Monticello remains one of the top communities. The project is for 40,000 sq ft building with 85 jobs. • Page 2 • IDC MINUTES JANUARY 21, 1993 d) Leo Adams - Koropchak reported Circuit Technology, Inc. has re-surfaced. The startup company's potential for funding has changed as the partnership now consist of three partners and has $200,000 in equity. The company is looking to lease 12,000 to 15,000 sq ft and projects 15 full-time jobs. Koropchak marketed the TIF/SPEC Plan; however, Shingobee's interest is to work with an existing business. The company's niche is the quick turn-around time of printed circuit board prototypes. A local bank views the business plan to having merit with SBA funding. Merrlyn Seefeldt expressed Electro Industries may have an interest in leasing space to this startup company. e) Commercial Greenhouse - NSP sent out a site location request for 50 to 100 acres. Site to be within a 100- mile radius of the Twin Cities and accessible to gas service and water source. Initial jobs is 15. John McVay has assisted Koropchak in responding to this inquiry through Mr. Weidt. The IDC discussed potential sites of the Kline and Dan/Ted Holker properties and the need to access gas line maps. Ken Maus reiterated the need for a preliminary development plan/concept between the city/township or city/Buffalo to accommodate large industrial prospects. f) Recreational Parts and Equipment - Koropchak reported that the 7,000 - 10,000 sq ft warehouse/catolog/retail facility would generate tax increment to support a TIF pay-as-you-go assistance of $5,000 annually. An economic district can legally be created; therefore, TIF assistance becomes a local policy decision. Prior to HRA action, the HRA requested knowing the percentage of retail to catolog sales. The HRA will consider the response of 50~ retail to catolog sales at their February meeting. Company representatives were contacted by Charles Pfeffer. Financial assistance is a deciding factor of site selection. Building occupancy planned for October 1993. BRE UPDATE: a) Genereux Fine Wood Products - Plans were confirmed with Bill and Barb Tapper for the IDC members to tour the facility on Friday, February 5 at 7:30 a.m. Koropchak will mail out a reminder. b) US Post Office - Koropchak noted to IDC members that she received copies of state congressional letters supporting a post office expansion at the current downtown site. • Page 3 IDC MINUTES JANUARY 21, 1993 5. CONSIDERATION TO REVIEW AND ADOPT THE 1993 ECONOMIC DEVELOPMENT WORK PLAN AND IDC BUDGET. Koropchak highlighted new tasks incorporated into the 1993 Work Plan by the committee. Mary Micke inquired if the IDC was interested in marketing or assisting retail/commercial prospects. Based on the IDC's history of no retail/commercial marketing, the IDC affirmed their objective for industrial development marketing only; therefore, the Chamber may elect to market retail/commercial development. It was recommended to include this affirmative objective in the 1993 Work Plan. Ron Hoglund made a motion to adopt the 1993 Work Plan inclusive of the recommended objective, seconded by Mary Micke. With no further discussion, the motion passed unanimously. Tam Lindquist made a motion adopting the 1993 IDC Budget, seconded by Harvey Kendall. With no further discussion, the motion passed unanimously. 6. CONSIDERATION TO REVIEW AND ADOPT THE IDC ORGANIZATIONAL AND MEMBERSHIP GUIDELINES. i Inorder to provide some structure to the IDC, the Work Plan Committee developed the enclosed Organizational and Membership Guidelines. Upon reviewing the guidelines, IDC Member Ron Hoglund made a motion to adopt the guidelines as proposed. Seconded by Kevin Doty and without further discussion, the motion passed unanimously. ?. CONSIDERATION TO ELECT IDC OFFICERS: CHAIR, VICE-CHAIR, AND TREASURER. Chairperson Johnson expressed his appreciation of IDC confidence in his leadership; however, he felt it was time to relinquish his four-year presidency. Additionally, he encouraged any one of the IDC members to step forward as they were well-qualified to fill the role. The floor was opened for nominations or to volunteer. Upon no nominations or volunteers, Arve Grimsmo made a motion to table the election of officers until the February meeting thereby allowing more time. Seconded by Mary Micke and with no further discussion, the motion passed unanimously. 8. CONSIDERATION TO VOLUNTEER FOR BRE VISITS AND TDC COMMITTEES. Koropchak handed-out a list of the IDC subcommittees and a • desciption of each subcommittee role, requesting IDC members Page 4 IDC MINUTES JANUARY 21, 1993 to check the one or ones they wished to serve on during 1993. Additionally, the list requested IDC members to sign up for an industrial business or businesses to visit as part of the 1993 BRE Program. The returned-request forms will be incorporated into the BRE Program orientation scheduled for the February IDC meeting. 9. OTHER BUSINESS: a) Quad-County Network Meeting - Koropchak enclosed the list of the network members for IDC information only. The network group will be meeting in Monticello on February 4. b) High-Speed Rail Update - This presented to the IDC for information purposes only. c) Mary Micke encouraged IDC members to attend the Chamber Banquet at Riverwood Conference Center on January 26. The speakers will be Candy Benoit and herself. The 1993 Chamber theme is "Communications". d) IDC members were encouraged to attend the "Monticello Day at the Capitol" scheduled for January 28. Meet at the city hall parking lot for departure at 5:45 a.m. Jay Morrell informed IDC members he had attended a very informative meeting on Worker's Compensatian at the St. Paul Civic Center. He encouraged members to contact Legislators on the forthcoming worker's comp issue and the D&R's Mille Lacs Lake Fishing controversial. 10. ADJOURNMENT. The IDC meeting adjourned at $:30 a.m. Ollie Koropchak, TDC Executive Director Page 5