IDC Minutes 02-18-1993• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, February 18, 1993 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chairperson Shelley Johnson, Vice Chairperson
Don Smith, Treasurer Ron Hoglund, Arve
Grimsmo, Ken Maus, Dennis Taylor, John McVay,
Dave Peterson, Kevin Doty, Steven Lemme,
Cyndie Johnson, Mary Micke, and Dr. Glenn
Nemec.
MEMBERS ABSENT: Lowell Schrupp, Jay Morrell, Harvey Kendall,
Linda Mielke, Tom Lindquist, and Merrilyn
Seefeldt.
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.
• 2. CONSIDERATION TO ELECT 1993 IDC OFFICERS: CHAIR, VICE-CHAIR,
AND TREASURER.
Chairperson Johnson opened the floor far nominations of IDC
officers. Don Smith informed members that he and Mr. Johnson
previously discussed Mr. Johnson's desire to stepdown as IDC
Chairperson and the need for the IDC to move forward. Based
on those previous discussions, Mr. Smith then nominated John
McVay as IDC Chairperson, Kevin Doty as IDC Vice Chairperson,
and Ron Hoglund as IDC Treasurer. With no other nominatians
from the floor, Chairperson Johnson ceased nominations and by
membership consensus the nominated individuals were elected as
1993 IDC officers. IDC members expressed their appreciation
and thankfulness to Mr. Johnson for his years of excellent
service and leadership.
3. CONSIDERATION TO APPROVE THE JANUARY 21 1993 IDC MINUTES.
Mary Micke made a motion to approve the January 21, 1993 IDC
minutes. Seconded by Kevin Doty and with no additions or
corrections, the minutes were approved as written.
4. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
Since the January balance of $18,022.42, Treasurer Hoglund
• reported interest of $43.47 and disbursements of $15,634.14,
City of Monticello; $13.80, BRE Genereux Tour; and $25.25,
Prospect Visit {Harvey Kendall mileage). Current IDC balance
IDC MINUTES
FEBRUARY 18, 1993
is $2,392.70. John McVay made a motion to accept the February
IDC Financial report. Seconded by Arve Grimsmo and with no
further discussion, the report was accepted as given. With
the noted IDC balance, Koropchak proposed requesting the City
Administrator transfer the City's 1993 budgetary contribution
to the IDC.
5. CONSIDERATION OF PROSPECT UPDATES:
a) Custom Canopy - Koropchak reported having received the
executed TIF Preliminary Agreement, $5,000 check, and
GMEF Preliminary Application request of $100,000 from
Custom Canopy. The estimated development cost is
$467,000 and will create 13-16 jobs. Prior to
authorization to establish a TIF District, the existing
facility will be visited, a copy of land purchase
agreement and bank commitment will be secured. The
financial package will consist of TTF pay-as-you-go,
GMEF, bank, and equity sources. The company is
considering Lot 6, Block 2, Oakwood Industrial Park or
property in the Monticello Commerce Center.
Koropchak informed IDC members that city staff is
scheduled to meet this afternoon with Mr. Charlie
• Pfeffer, his planner, and Dennis Taylor. The
presentation will consist of preliminary concept plans
for development of the Monticello Commerce Center area.
Thereafter, the intent is to invite Mr. Pfeffer to the
March IDC meeting.
Based upon the GMEF $100,000 request, Don Smith
referenced Mayor Maus' comment that "the GMEF was created
for emergency/gap financing and the Liquor Fund source
may run dry" and requested a report of the GMEF accounts .
b) Wilson Tool International - Mr. Kendall, Mr. Hoglund, and
Koropchak visited Wilson Tool in White Bear Lake on
January 26. The company manufacturers tool and die press
punches, appears to be well-management, and is a quality
company similiar to Remmele Engineering. Two financial
options were offered in the submitted $2,155,000
packaging proposal. Upon the direction of the EDA, a
$400,000 interest-free REA loan was not part of the
package. Tam Emery visited industrial sites in
Monticello, Saturday, January 30, as expressed through
the enclosed letter. Monticello remains in the running
as Mr. Emery was impressed with our location. Faribault
and Owatonna are other Minnesota communities being
researched. Wilson Tool reports a delay of two to three
weeks before site selection consideration. In response
to Mr. Doty's question of the potential use of Industrial
•
Page 2
• IDC MINUTES
FEBRUARY 18, 1993
Revenue Bonds, Koropchak reported she had inquired of the
same question to BDS. As per BDS, Industrial Revenue
Bonds were not part of the financial package because of
the current lack of sellability. The IDC suggested
utilizing the REA program to further encourage Wilson
Tool.
c) All-Temp Distribution - A meeting has been scheduled for
February 23 with the Hoglund Family, the City Engineer,
Mr. Holman, BDS, and city staff to discuss potential
development of the Hoglund Property. Mr. Holman's
proposed 50,000 sq ft refrigerated facility requires the
need for rail now and in the future. Lunch has been
scheduled for 12:30 p.m. at the River Inn and Koropchak
asked for volunteers to join. Don Smith, Shelley
Johnson, and John McVay responded.
d) Perf-form Products, Inc. - This Big Lake company proposed
to construct a 6, 000 sq ft facility at a cost of $140, 000
in Elk River. Due to an unwilling seller, the company
owner has expressed an interest in the City's small lots
along Dundas Road. Koropchak informed IDC members that
Council would be considering a new agreement between the
City and The H-Window regarding the six city-owned lots.
• Originally in 1990, a First-Right-of-Refusal was placed
on Lots 1, 2, and 3. And in 1991, a resolution was
adopted holding Lots 1, 2, 3, 4, 5, and 6 for The H-
Window. This expired December 1992. The proposed
agreement extends the holding of the three-westernly lots
and places a first-right-of-refusal on the three-
easternly lots through May, 1993; thereafter, a decision
by the H-Window or Norwegian Board of Directors will
assist in determining the June 1 land holding or purchase
option agreement. Council or city staff will also need
to determine a purchase price for the property. Mr.
Lemme approved of the proposed agreement and informed the
IDC that the Norwegian Board of Directors look at the
broad picture and their long-term needs. Although, the
company owns 10 acres at their present site they wish to
prevent becoming landlocked. Plans are for a one million
dollar expansion late fall/early spring along with the
announcement of a new product line. The company remains
interested in Monticello and highlights its excellent
work farce as a leading determinant. The IDC extended an
offer to assist with the Norwegian Board of Directors
visit in May. Mr. Lemme appreciated the IDC offer.
e) Circuit Technology, Inc. - Koropchak reported she
followed through on the expressed Seefeldt interest to
•
Page 3
IDC MINUTES
FEBRUARY 18, 1993
lease space to Circuit Technology. However, the two
parties have not met nor has arrangements for a meeting
been made.
f) Recreational Parts and Equipment - Upon the HRA's
decision to assist the company through the TIF pay-as-
you-go financial method based on tax increments generated
by the warehouse only, Koropchak telephoned the company
in Maryland. The officials plan a Minnesota visit in the
near future.
g) Commercial Greenhouse - Koropchak reported Mr. O'Neill
was to set up a meeting with township or county officials
regarding this development and others-of-liking as
outlined in the Economic Work Plan. John McVay informed
the IDC of the company's interest in properties near
Prairie Acres (south of Monticello) and in Becker.
BRE UPDATE:
a) Genereux Tour Feedback - Members who toured the facility
viewed the operation as very impressive and noted Mr.
Tapper's enthusiasm of his business.
b) BRE Breakfast - The BRE Breakfast date has been confirmed
for April 22 at the Riverwood Conference Center starting
at ?:30 a.m. Koropchak noted the letter mailed to
• twenty-seven industrial businesses referencing the
upcoming breakfast date. The BRE Committee will plan and
host the breakfast. Mr. McVay offered to inquiry of
NSP's interest to co-sponsor the breakfast.
6. CONSIDERATION TO REVIEW COMMITTEE VOLUNTEER LIST AND A BRIEF
BRE VISIT ORIENTATION.
Koropchak presented IDC members with a copy of the 1993 IDC
Committees and BRE Program listings as prepared from the
returned volunteer sheets. Members were assigned according to
their request and were asked to review the list for accuracy.
Team BRE groups are responsible far coodinating their
respective visits or contacts. Next, Koropchak presented
members a copy of the BRE objectives and suggested tasks, and
highlighted the first task: Invite and/or accompany your
assigned business representative to the BRE Breakfast on April
22 and to encourage the sharing of something about the
business or business representative. Don Smith, a leader and
strong supporter of the BRE program, encouraged members to
make two-three contacts during the year. Adding, a developed
BRE relationship enhances the creditability for our committee
and the City of Monticello.
•
Page 4
•
IDC MINUTES
FEBRUARY 18, 1993
7. CONSIDERATION OF STAR RECERTIFICATION DATES:
a) Koropchak noted the 1992 Activity Report enclosed with
the agenda and commended the IDC on their
accomplishments. Required Star Recertification materials
were mailed on Friday, February 12, to meet the 16th
deadline.
b) Koropchak noted the 1993 Community Profile is currently
being updated and will be submitted Friday, February 19,
to meet the MTED deadline for annual publication.
c) Koropchak noted the enclosed letter establishing April 7,
3:00 p.m. as Star Recertification Site Visit date for the
City of Monticello. IDC members will be solicited at the
next meeting for participation in the site visit.
8. OTHER BUSINESS.
a) Consideration to review proposed City Permit Fees -
Koropchak presented IDC members with a copy of the City
Permit Fees to be reviewed by the City Council on Monday
night. Dr. Nemec questioned the rationale of a $10,000
deposit for landscaping when the Hart Clinic's total
landscaping costs were approximately $4,500. Due to the
short notice, members were encouraged to contact city
staff or elected officials regarding permit fee comments
or questions.
b) Consideration to review proposed City/H-Window Land
Option Agreement - Covered under agenda item number 5d.
c) Chamber General Membership Meeting, 11:50 a.m., American
Legion. Program is discussion of Chamber meeting's when
and how to. Cyndie Johnson briefed members on a proposed
bill regarding industrial-transportation packaging.
9. ADJOURNMENT.
The IDC meeting adjourned at 8:25 a.m.
Ollie Koropchak, IDC Ex~utive Director
Page 5