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.
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• 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.
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• 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.
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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
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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
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