IDC Minutes 03-18-1993MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, March 18, 1993 - ?:00 a.m.
City Hall
MEMBERS PRESENT: Vice Chairperson Kevin Doty, Treasurer Ron
Haglund, Shelley Johnson, Don Smith, Jay
Morrell, Harvey Kendall, Ken Maus, Dennis
Taylor, Tom Lindquist, Cyndie Johnson, Mary
Micke, and Dr. Glenn Nemec.
MEMBERS ABSENT: Chairperson John McVay, Lowell Schrupp, Arve
Grimsmo, Dave Peterson, Linda Mielke, Steven
Lemme, and Merrilyn Seefeldt.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
STAFF ABSENT: Jeff O'Neill.
1. CALL TO ORDER.
Vice Chairperson Kevin Doty called the IDC meeting to order at
7:03 a.m.
2. CONSIDERATION TO APPROVE THE FEBRUARY 18, 1993 IDC MINUTES.
' Ran Hoglund made a motion to approve the February 18, 1993 IDC
minutes. Seconded by Mary Micke, and with no additions or
corrections the minutes were approved as written.
3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT.
Treasurer Hoglund reported a Metropolitan Federal balance of
$1,224.86 and a Marquette Bank balance of $5,901.47 for a
total balance of $7,126.33. The Gity's 1993 contribution of
$6,450 was received, the last Business Media bill was paid,
and two Minnesota Real Estate Journal invoices are still
expected. Harvey Kendall made a motion to accept the March
IDC financial repcrt as given. Seconded by Tom Lindquist and
with no additions or corrections the financial report was
accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
a) Custom Canopy - On February 25, Harvey Kendall, John
McVay, and Koropchak visited the company's existing
manufacturing facility in Albertville; and on March 1,
Koropchak met with Pat Dwyer, Bank of Elk River, and
Stephen Birkeland Jr. to finalize the funding terms. Tree
EDA will review the GMEF application on March 30 and
Council approval far the GMEF and TIF District No. 1-15
is scizeduled for April 12. It is anticipated that
construction will begin May 1.
IDC MINUTES
MARCH 18, 1993
b) All-Temp Distribution - On February 23, company
representatives, the Hoglund Family, and the city
engineer and staff met to discuss the All-Temp project.
The potential project generates the need to construct
public improvements on the Hoglund property. Also,
development procedures, the need to assure the future
availablity of rail, and the project time-table were
discussed. Shelley Johnson, Don Smith, Ron Hoglund, and
John McVay joined the company representatives for lunch.
On March 11, NSP officials, John Holman, a MN Commercial
RR representative, a MDOT Railway and Waterway Division
representative, Pat Pelstring, and Koropchak met at NSP
Riverside to discuss the future of the Burlington
Northern branch line to Monticello. Three sources of
funds appear to be available to assist with the upgrade
of the Crow River bridge and the railroad bed, and for
ongoing maintenance costs. These are through the State
Railway and Waterway Division, a Community Development
Block Grant (CDBG), or the establishment of a Regional
Rail Authority. NSP officials will meet with the
corporate management to discuss the company's future need
• of ttie rail within the next two weeks. On March 16, city
staff, the Hoglunds, and the Dahlheimers met to discuss
the projected public improvement costs and the potential
assessment role.
Koropchak informed the IDC that in-addition to Mr.
Holman's 50,000 sq ft project another potential spin-off
business (Company Y) has emerged. This estimated $7.5
million project would construct an approximate 75,000 sq
ft production facility and create approximately 50 jobs.
Koropchak outlined the potential impact to the community:
taxes, jobs, and project costs. Also, the development of
the Hoglund property would enhance the land purchase
options for companies such as Wilson Tool and Steinwall,
Inc.
c) Wilson Tool International - In a telephone conversation
with Mr. Emery on February 26, he reported that the
company`s decision far site location has been delayed by
two-three weeks. Monticello remains in the running along
with Owatonna and Fairbault, and two Wisconsin
communities.
d) Mike Langer - This Pierce, Minnesota, headwear sewing
company is looking to lease 2,000-3,000 sq ft. The
company employs 10 full-time and part-time people and
anticipates a relocation move this summer. The company
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IDC MINUTES
MARCH 18, 1993
is seeking a location closer to the metro. Mike and
Koropchak will be meeting with Jay Morrell following this
meeting.
e) Jim Thompson - This lead from Carol Pressley-Olson,
Minnesota Community Development Office, is for a start-up
business. The initial need is far $150,000 of Capital
Venture. The business plan describes the research and
development of the pitching machine, marketing plans, and
sales projections. The product has received endorsement
from Jim Cox. The need is for investors.
f) Kevin Kloeppner - This water laboratory is looking to
lease approximately 400-600 sq ft. The Elk River
business provides a water testing service and employs one
full-time and two part-time. Koropchak contacted Bob
Rierson.
g) Perf-form Products, Inc. - Following the Council's
approval of the new agreement between the City and The H-
Window Company, Koropchak contacted Mr. Koelfgen on the
availability of the three easternly city lots subject to
first-right-of-refusal by the The H-Window. The City of
Elk River offered additional land purchase assistance;
therefore, Mr. Koelfgen is proceeding with an Elk River
expansion.
BRE UPDATES:
a) Membership BRE Reports - Koropchak noted the Bondhus
Corporation has 91 employees at the Monticello plant and
38 at the Barbados plant. Facilities in Japan and Canada
occupy warehousing, distribution, and sales space with
employment of five and three, respectively. They employ
one personnel in Germany; however, occupy no space. In
addition to John Bondhus, Nancy Spivak is an alternate
contact for the IDC. Secondly, Koropchak reported that
The H-Window Company participated in Home and Garden Shaw
at the Minneapolis Convention Center. The professional
display received high marks for quality and creates a
great sense of pride for the City of Monticello.
Thirdly, in addition to Mr. Lemme previous announcement
of the H-Window expansion plans, Koropchak reported she
has been contacted by two other Monticello industries
regarding major expansion plans in 1993 and 1994. She
praised the IDC for their support of the BRE program and
noted that the potential expansions are just some of the
results of the IDC efforts.
b) BRE Breakfast, Thursday, April 22 - Koropchak reminded
members to contact their volunteered industrial
business(es) about the breakfast and noted that RSVP will
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MARCH 18, 1993
a~
be taken at the ~Ydy 15 IDC meeting. The breakfast will
begin sharply at 7:30 a.m. at the Riverwood Conference
Center.
c) Volunteers for April Site Visit - Koropchak asked for a
couple of IDC volunteers to assist with the presentation
far the Star Site Visit. The visit scheduled for 3:00
p.m. at the City Hall is for Star Recertification. A
community is visited every three years. Shelley .Johnson
and Ron Hoglund volunteered.
5. CONSIDERATION TO REVIEW IDC ORGANIZATIONAL LENGTH OF
MEMBERSHIP TERMS.
Koropchak requested the IDC review the assigned membership
terms. Professional occupations and existing length of IDC
membership were the criteria used to establish the three year
stating membership terms. Through a consenus of the IDC, the
members accepted the assigned membership terms.
6. CONSIDERATION TO REVIEW THE GMEF YEAR-END FINANCIAL REPORTS
AND THE UDAG AND ERG ACCOUNT BALANCES.
First, Koropchak reviewed the enclosed GMEF year--end financial
reports with IDC members. With the assumption of current loan
paybacks, appropriations, and projected loan disbursements,
the EDA projects a GMEF December 1993 cash balance of
$65,755.41. Secondly, Koropchak reviewed the future projected
UDAG revenue and stated the January 31, 1993 fund balance was
$77,780.48. The UDAG was earmarked for economic development
and can be used far the GMEF through Council authorization.
Thirdly, the future projected ERG revenue and the March 17,
1993 fund balance of $7,450.35 was reviewed. The ERG was
earmarked for the GMEF; therefore, no Council authorization is
necessary. Fourthly, as a point of clarification, Koropchak
noted of the four GMEF loans approved the total disbursements
of $273,000 were from the Liquor Fund and the UDAG Fund,
$188,000 and $85,000, respectively. The annual request by the
EDA for Liquor Fund Appropriations of $200,000 only means
monies are available and is not a request for disbursement.
Koropchak noted with the various funding sources available to
fund the GMEF, it becomes increasely mare difficult to define
the dollar amount of the remaining GMEF balance.
Maus expressed concern of the public s mag
assets were approximately $500,000 and tt GMEF dollars are
used as up-front packaging dollars rather-than-as end gap
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The report brought various comments from IDC me hers. Mayor
' e ~' ' GMEF
• IDC MINUTES
MARCfI 18, 1993
dollars. Tom Lindquist noted that the projections did not
include a loan default rate but was based on the assumption of
100 loan payback. All agreed that the success or test of the
program willb~dt the time the GMEF loan balloon payments come
due. Others felt the program vacs designed to stimulate
industrial development and to place Monticello in a leading
competitive edge. Additionally, the grogram was approved with
the recognition of the risk factors. Not to minimize the risk
factar, Koropchak reported because of Monticello's location we
are fortunate to attract existing-quality companies; unlike in
rural Minnesota where some revolving loan funds are used far
working capital to enhance business survival. The IDC agreed
with the need to increase scrutinization for true need of GMEF
dollars and appreciated the accountability of the various
funds.
7. OTHER BUSINESS:
a) Chamber of Commerce - Mary Micke reminded IDC members of
the "Chamber's After Hours" at the Monte Club, today,
from 4:30 p.m. to 6:30 p.m. And that anyone interested
in attending the Minnesota Business Property Taxpayers
• "Day at the Capitol", on March 25 from ?:30 a.m. to 1:30
p.m. was welcome; however, the registration fee of $25 is
at one's own expense.
b) Koropchak informed members that the City Council would be
considering the City's Permit Fees at the upcoming
Council meeting and if everyone had any questions to call
city staff. Members received a copy of the fee schedule
in February.
c) Yoropchak informed the IDC members of a March 25 meeting
at Wright--Hennepin Electric Cooperative in Maple Lake.
The meeting objective is to further discuss the Wright
County Economic Development Partnership Study. The three
areas of discussion are business retention, enterprise
development, and infrastructure. The summary report and
meeting information was mailed to all local lending
institutions.
8. ADJOURNMENT:
The IDC meeting adjourned at 8:30 a.m.
Ollie-~K-oar-a~pchak, IDC Executive Director
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