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IDC Minutes 05-20-1993_~ MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, May 20, 1993 - 7:00 a.m. City Hall MEMBERS PRESENT: Vice Chairperson Kevin Daty, Treasurer Ron Hoglund, Don Smith, Arve Grimsmo, Jay Morrell, Ken Maus, Dennis Taylor, Tom Lindquist, Merrlyn Seefeldt, Cyndie Johnson, and Mary Micke. MEMBERS ABSENT: Chairperson John McVay, Shelley Johnson, Lowell Schrugp, Harvey Kendall, Dave Peterson, Linda Mielke, Steve Lemme, and Dr. Glenn Nemec. STAFF PRESENT: Jeff O'Neill and Ollie Koropchak. STAFF ABSENT: Rick Wolfsteller. 1. CALL TO ORDER. Vice Chairperson Doty called the IDC meeting to order at 7:03 a.m. • 2. CONSIDERATION TO APPROVE THE APRIL 15~, 1993 IDC MINUTES. Ran Hoglund made a motion to approve the April 15, 1993 IDC minutes. Seconded by Merrlyn Seefeldt and with no corrections or additions, the minutes were approved as written. 3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAL REPORT. Treasurer Hoglund reported a Metropolitan Federal balance of $1,241.13 and a Marquette balance of $4,134.00 for a total balance of $5,375.13. Monthly disbursements were for advertising, the BRE Breakfast, EDAM membership, and the Custom Canopy Groundbreaking Reception. Arve Grimsmo made a motion to accept the May financial report. Seconded by Tom Lindquist and with no corrections or additions, the financial report was accepted and filed as given. Treasurer Hoglund requested the IDC consider the addition of Koropchak's name to the IDC bank accounts. This to increase the convenience of securing the second-required IDC signature for check issuance. Arve Grimsmo made a motion authorizing the addition of Ollie Koropchak's name to the IDC accounts at Metropolitan Federal Bank and Marquette Bank - Monticello. Seconded by Mary Micke and without further discussion, the motion passed unanimously. • Page 1 -~ IDC MINUTES MAY 20, 1993 4. CONSIDERATION OF PROSPECT UPDATES: a) Steinwall, Inc. - Mr. Brotherton and Koropchak visited industrial sites on April 20. The company is most interested in sites with freeway exposure, projected land and building costs are 1.2 million dollars, and the company's current employment is 70. The company anticipates purchasing property in 1993 with building construction projected far 1994. Mr. Brotherton had planned to attend the BRE Breakfast. Koropchak has left numerous messages of which Mr. Brotherton has not returned. b) Wilson Tool, Inc. - In a conversation with Mr. Tom Emery on May 7, Koropchak was informed that Wilson Tool had hired a manager for the proposed new plant. The new manager is from the Minnetonka area and has suggested the company consider a western Metro suburb site location. The company will be looking at new site locations in the next weeks, the project is still scheduled for 1993, and Monticello still remains a contender. The company will receive a second letter marketing Monticello and its financial proposal. Tn addition, the IDC suggested that Monticello's position may be strengthened if the Topper's • were willing to contact the company on behalf of the City of Monticello. c) All-Temp Distribution - With the unknowns of the future railroad availability and as per the enclosed Hoglund letter which states the family's decision to market and sell the 72 acre industrial site to one developer, Mr. Holman will refocus and look at other expansion options. d) Weinhold Company - With the inquire from Vogel Display, Koropchak proceeded to contact contractors interested in a building to lease/purchase option. The two projects being of the same timeframe would allow for the creation of one TIF District thereby reducing City costs and providing a greater tax increment benefit to the companies. Dan and Craig Miller of Miller Construction, St. Cloud, expressed interest and the two companies were informed of the need to update financial statements and their business plan. Mr. Weinhold is in the process of doing so. Proposed project is 5,000 sq ft, 6 full-time jobs, and the product is quick-change bits for power drills. The company's current lease agreement in St. Louis Park expires December 1993. The Insty-Bit market piece was made available to IDC members. e) Vogel Display - A small St. Louis Park company which manufactures Christmas decorations is looking to relocate. The company's current lease expires in • December 1993 . The proposed project would be a 20 , 000 sq Page 2 IDC MINUTES MAY 20, 1993 ft metal facility consisting of heat and cold storage. The company employs five full-time and during the peak season employs up to thirty. Upon further contact with Mr. Vogel, his decision was to delay his relocation plans. f) Leo Adams - Koropchak reported the start-up company has been unsuccessful in their attempt to secure conventional financing locally, therefore, the project concept was referred to BDS, Inc. for potential assistance in securing funding. Merrlyn Seefeldt reported Bill and she were cooled on the idea to lease to Mr. Adams as he wished to lease 10,000 sq ft and had no committed clients. BRE UPDATES: a) The H-Window Company - Koropchak reported Pat Pelstring and Lenny Kirscht of BDS, Inc. and herself are scheduled to meet with the Norwegian Board members and Mr. Steve Lemme on Tuesday morning, May 27. The meeting will be to discuss the development of a financial proposal for the company's planned expansion. Arve Grimsmo reported the Norwegian glass company sold out to a major firm, the board has given the go ahead for a plant expansion, long-term plans call for a second major expansion in 96- 97, and that Knut Flakk and his family would be moving to the US. b) BRE Business Reports - No reports were given. 5. CONSIDERATION TO SUMMARY THE 1993 BRE BREAKFAST AND HEAR FEEDBACK. Koropchak provided IDC members with a recap of the BRE Breakfast attendance. Total attendance being 42 or one greater than the previous year; however, seven industrial leaders who committed to attend were not present. The breakfast objective is to provide an informal networking opportunity for IDC, city staff, and industrial leaders. Various comments and ideas surfaced from IDC members: Spring, busy time of the year; try a 7:00 pm Cocktail Networking Hour; sponsor a shared-service (wages, benefits) workshop far just industrial leaders; and support for the current breakfast concept. C1 Page 3 IDC MINUTES MAY 20, 1993 6. CONSIDERATION TO HEAR AN UPDATE OF THE MONTICELLO COMMERCE CENTER REZONING REQUEST AND TO REVIEW CHAIRPERSON MCVAY'S LETTER. Jeff O'Neill reiterated the proposed Gair rezoning request as heard by the Planning Commission in May. The I-1 request included a 35-acre strip along Fallon Avenue from Chelsea Road south to the school property and remaining industrial property be BC zoning. The Planning Commission tabled the item as the one and one-half hour presentation wore the commissioners down. Koropchak summaried the results of the April IDC meeting stating the members felt encouraged that compromise and progress was being made, questions were asked, no direction given, and members were encouraged to contact staff for additional comments. Two concerns raised following the IDC meeting were to ensure that the proposed larger ponding area not infringe on the school property and that the berm plantings be of types to encourage low-clearance visibility which might assist to discourage potential gathering of students. • Additionally, Koropchak informed members that the enclosed letter to Mr. O'Neill from Mr. McVay was the result of a meeting between Pfeffer, McVay. and herself which transpired a few days following a meeting between Pfeffer, Gair, Taylor, Griffth, O'Neill, and Koropchak. At that meeting, the City Planner recommended the entire industrial area remain Business Campus (BC) only. Korapchak noted Mr. McVay's letter suggested that consideration be given to reduce the 3096 green space if the property were zoned BC only OR that consideration be given for a combination Light Industrial (I-1) and BC zoning. McVay's letter does not suggest the consideration of both options, only, one of two options. Vice Chairperson Doty informed members that Planning Commission Chairperson Lemme would appreciate some input from the IDC. Jay Morrell said he has never supported a BC zoning next to an I-2 zoning. Dennis Taylor said Mr. Gair's plan presented a compromise with the combination of I-1 and BC zoning while encouraging development. Mr. O'Neill said a BC zoning would secure a plan for quality long-term development for the City of Monticello. All agreed to BC zoning along the freeway and suggested the same zoning concept be applied to the Hoglund • Page 4 IDC MINUTES MAY 20, 1993 property upon development. However, some members felt BC may be good planning but does not encourage marketing or property development. Merrlyn Seefeldt made a motion recommending 350 feet I-1 zoning east of and parallel with Fallon Avenue between Chelsea Road and the school property. Cyndie Johnson seconded the motion, adding she initially opposed the BC 30~ green space requirement. The motion was discussed and Mr. Taylor suggested amending the motion to allow for two tiers of I-1 lots or 800 feet east of and parallel with Fallon Avenue. Tom Lindquist suggested calling a special IDC meeting to further discuss the proposed zoning request. Mayor Maus suggested the motion eliminate the footage amount and leave that decision up to the experts. Merrlyn Seefeldt amended the original motion recommending a minimun of 300 feet I-1 zoning east of and parallel with Fallon Avenue between Chelsea Road and the school property. Cyndie Johnson seconded the motion and without further discussion, the motion passed unanimously. The Planning Commission will review the zoning request at their June meeting. • 7. CONSIDERATION TO HEAR_ OF THE SCHEDULED COMMUNITY/NSP RAILROAD PARTNERSHIP COMMITTEE MEETING. Based on the recommendation from the IDC, a NSP/Community Railroad Partnership Committee has been formed and will meet following the IDC meeting. Members are Arve Grimsmo, Harvey Kendall, Ron Hoglund, Mayor Maus, Charlie Anderson, and Koropchak. Other players will be asked to become involved as the objective research is complied. Today's meeting will outline the committee's objectives and tasks. 8. OTHER BUSINESS: a} Chamber President Micke reminded members of the Chamber meeting today at 11:50 a.m. at the American Legion. Program: "Customer Service and Understanding Your Customers" by Terry Slattery. b} Koropchak announced the upcoming Wright County Development Group meeting scheduled for Thursday, May 27, 1993, 7:30 p.m. at Functional Industries on Highway 25, Buffalo. c) The IDC congratulated Jeff O'Neill and the Parks Commission as recipient of a Minnesota Bikes, Trails, & Pathways Grant. The City of Monticello was awarded $285,000 for development of a city system. Monticello • was one of a few cities to receive a grant. Page 5 • IDC MINUTES MAY 20, 1993 ADJOURNMENT. The IDC meeting adjourned at 8:35 a.m. C~ 9~ \`~ Ollie Koropchak, IDC Executive Director • ' Pa e 6 g