IDC Minutes 11-18-1993MINUTES
. MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Triursday, November 18, 1993 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, P.on Hoglund, Shelley
Johnson, Arve Grimsmo, Lowell Schrupp, Don
Smith, Harvey Kendall, Ken Maus, Dennis
Taylor, Linda Mielke, Merrilyn Seefeldt,
Cyndie Johnson, and Dr. Glenn Nemec.
MEMBERS ABSENT: Kevin Doty, .lay Morrell, Dave Peterson, Tom
Lindquist, Steven Lemme, and Mary Micke.
STAFF PRESENT: Jeff O'Neill and Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller.
GTJESTS: Neil McMillin, Treasurer, Economic Development
Partnership of Wright County.
Bill Enders, Marquette Bank - Monticello.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:00 a.m.
• 2. CONSIDERATION TO APPROVE THE OCTOBER 21, 1993 IDC MINTJTES.
Ron Hoglund made a motion to approve the October 21, 1993 IDC
minutes. Seconded by Lowell Schrupp and with no additions or
corrections, the minutes were approved as written.
3. CONSIDERATION TO HEAR AND ACCEPT THE IDC FINANCIAh REPORT.
Treasurer Hoglund reported monthly balances of $10,352.55 at
Marquette Bank - Monticello and of $1,594.19 at Metropolitan
Federal for a total balance of $11,946.74. All banquet
expenditures have been paid except for Little Mountain
Flowers. Harvey Kendall made a motion accepting the November
financial report as given. Seconded by Lowell Schrupp and
with no additions or corrections, the report was accepted and
filed.
4. CONSIDERATION TO HEAR A PKESENTATION FOR ENDORSEMENT OF THE
ECONOMIC DEVELOPMENT PARTNERSHIP OF WRIGHT COUNTY.
Chairperson McVay introduced Mr. Neil McMillin. Koropchak
informed IDC members that Mr. McMillin made a pre:~entation to
the City Council on November 8. Because the City of
Monticello has an economic development budget and staff
person, Council direr.ted City Staff to research the pros and
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IDC MINt1TE5
NOVEMBEk 18, 1993
cons of city membership prior to their consideration of
member:~hip; therefore, the IDC is being a:~ked for inpia.t.
Mr. Neil McMillin, Treasurer for the Economic Development
Partnership of Wright County and Economic Development Manager
for Wrigr~t-Hennepin Cooperative Electric Association, told IDC:
members that the idea of a County Economic Development
organization has been a "buzz word" for the past twelve years .
The Economic Development Partnership of Wright County has been
established as a Minnesota non-profit organization. The
public/private partner}hip, which is not comprised of elected
officials, has an office at the County Court House, The 15-
member board of directors' mission statement includes plans
for development of county marketing, job retention and
creation, code of ethics, small business education, quarterly
newsletter, and a revolving loan fund. The partnership has
developed and filed their Articles of Incorporation and
Bylaws, received endorsement from the County Commissioners,
ror_eived a $2,500 grant from Minnesota Technology, and
participated in the development of the Quad County "blue
print" in cooperation with Department of Trade and Economic
Development. Currently, informational presentations have been
• made to the Cities of Clearwater, Maple Lake, Buffalo, Cokato,
MorYtirello, Annandale, and Ostego. Membership commitments
have been received from all the above except Buffalo,
Monticello, and Ostego. After completion of city
presentations, the directors will meet with the townships,
private businesses, and organizations completing a 45-day
member:~hip drive.
Mr. McMillin presented IDC members with a list of the names of
the chartered boardmembers. Directors have staggering three-
year terms and meet every other month on the fourth Thursday
at 9:00 a.m., member:~hip meeting at 10:00 a.m. Additionally,
hE: sf>oke of the five-level membership structure and expressed
"Monticello and Buffalo memberships" as key to the success of
the partnership.
In response to IDC questions, Mr. McMillin said the county
would develop a data base for industrial leads . Leads as from
the Minnesota DTED would than be distributed to governmental
unit members. However and for example, Monticello or Wright
County would receive secondary benefits from the tax base or
jobs created by a development in another community. The
partnership cauld eraharrce the working relationships for
<~evelopment between cities and townships.
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IDC MINUTES
NOVEMBP:R 18, 1993
Don Smith responded that Monticello has been self-sufficient
and years ahead of the Coia.nty with re:~pect tc economic
development because of its freevaay accessibility and
land;`utility availabil.ities. He saw the county partnership
riot as a threat but as an opportunity for expansion in
economic development. IDC members endorsed the county
partnership; riowever, saw the need for local representation on
the board. Arve Grimsmo made a motion for the IDC to
contribute $5UU towards the City's approximate $1,500
membership fee; therebye, indicating IDC support of the
partnership and encouraging City Council to endorse the
Economic Development Partnership of Wright Co~znty. The
partnership benefits to be reviewed every other year.
:seconded by Harvey Kendall and with no further disc~zssion, the
motion passed unanimously.
5, CONSIDERATION OF PROSPECT tJPDATES:
a) D~zngannon/Monticello Connection - Don Smith reported that
Monticello Rotary delegates to Northern Ireland were
welcomed with open--hearts, left a good impression, and
felt very satisfied with tl~ie initial established
cot~Y~ection. The group toured various manufacturing
operations in B~:lfast and Dungannon. Arve Grimsmo
~epor.ted seeds were planted and told of his per;~onal
• contact with individuals. Koropchak received a fax from
Mr. William Beattie, Chief Executive of the I~u.ngannon
District Council. The Dungannon delegation is interested
in visiting Monticello, this will be coordinated through
the Rotary Club. Same of the Monticello School District
classrooms and teachers are already experiencing
Dungannon exchanges.
b) Food Processor - On November 2, the Monticello Prospect
Team and City Staff met with Mr. Jim DeVir~e, Advanced
Food Sciences, Inc., and Mr. Peter Lytle, Land O'Lakes,
Inc. The two individuals were accompanied by Deb
Palmquist, NSP Economic Development Consultant. Mr.
Lytle described the OHMIC process in detail. Food
particulates, which arrive via truck transportation, are
placed in vertical columns designed with heater electrode
wiring. The process sterilizes the particulates evenly
ar~d quickly; ultimately, increasing the shelf-life up to
three years while preserving a fresh, crisp texture upon
consumer preparation. The process which is utilized in
.Japan and Europe has not received FDA approval. The
capital investment has increas~:d from the initial $3
million to $15 million. Initial building sire increased
from 10,000 sq ft to 21,000 sq ft vaith the greatest
increase attributed to the high-tech research and
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IDC MINUTES
NOVEMBER 18, 1993
development equipment. At maximum, the company projects
an employment of 250-300 full-time people at an average
wage of X18 per hour including benefits. The
representatives visited 11 metro/fringe communities and
are looking for a cammuriity willing to participate as a
financial partner.
P.ltizough the Monticello team and staff saw potential
spin-off benefits to the community, they agreed any
financial proposal must be contingent upon receipt of
fizll, ~a.nconditional corparate partnership guarantees. A
prapasal letter was faxed on November 15. The agenda
included a copy of the November 2 fallow--up
correspondance from Mr. Devine. Chairperson McVay
reported the company has opened their site selection
search to include the state of North Dakota.
b) Pampered-Pets Cuisine, Inc. - Koropchak reported that the
preliminary building plans were submitted to the Building
Official late Tuesday. The 15,500 ~q ft metal facility
is proposed with one-half the office fram consisting of
brick.
c) Polycast, Inc:. - Karopchak has a meeting scheduled for
November 23 with Roy Schulz and his son. The 16,800 ;~q
ft building design plans are camplete, no site selection
• has been made, and no bank financing has been secured.
d) Berns, Irlc. - Karopchak has a meeting scheduled far
December 2 with Mike Berns to discuss the likelihaod of
a company/Monticello fit. The 199 project wauld
construct a 25,000-30,000 sq ft facility with 25-30
employees.
e) Federal Foam Praduc.ts, Inc. - According to the TED
office, this company has placed their site :selection
search on-hold.
f) Steinwall, Inc. - Koropchak reported contacting Richard
Brotherton as a follow-up to his banquet attendance and
to arrange a tour of their Fridley facility. Mr.
13rotherton inquired if Dennis Zylla, Narthco, Inc., site
selection consultant for Steinwall, had contacted her
office recently. Mr. Brother indicated that Mr. Zylla
r•epeatly markets Maple Grove and Champlin; althaugh,
Monticello, Fridley, and Plymouth are also potential site
options. Steinwall representatives visited an Iovaa
plastic injection molder, the fourth largest in the
nation, to study a floor design plan. Kraus-Anderson is
the general contractor with site selection scheduled for
December. Koropchak responded having received no calls
fram Mr. Zylla. Currently, a financial proposal is being
prepared and will be faxed to MaurE~en Steinwall today.
The building project has increased from 30,000 to 50-
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IDC MINUTES
• NOVEMBER 18, 1993
5£i,OOO sq ft. The IDC earmarked Steinwall, Inc. as
number one priority for recria.itment. Shelley Johnson
expressed an interest to be part the Prospect Team visit.
SRE UPDATES:
a) Custom Canopy, Inc. - The agenda included a copy of
Chairperson McVay's letter to the Planning Commission as
per the IDC's recommendation. Also, enclosed vaas a copy
of IiRA Chairperson Larson's letter to Mr. Stephen
Birk.eland, Jr., Custom Canopy, Inc. City Council
approved screening the back perimeter of the developed
property vaith an eight-foot fence extending from the
northeast building corner northerly than westerly. At
the paint of proceeding south, the fence may be
substituted with green plantings.
b} Standard Iron & Wire Works, Inc. - The company hopes to
have the building enclosed and the primary parking
surface in front of the office completed prior to winter
frost. Koropchak reported that one of the construction
workers was injured on-site and air-ambulanced to North
Memorial. This on November 10, the worker is recovex•ing.
Award letters have not been received from tkie State or
the Initiative Fund regarding funding approval; however,
. are anticipated.
c) H-Window Company - TYie expansion project is on schedule.
The State has requested a list of items which need
satisfying prior to final review and approval of the loan
application.
d) Others - Koropchak reported she spoke with and presented
F3ondhus' Russian Office Marketing individual with the
City of Mcnticello's marketing information and a
Monticello, Your Kind of Place sweatshirt. The twenty-
three year old female employee has studied English for
fourteen years. It was suggested that fu3~ther
communication and correspondence with he r• riot be direct
but through the Bondhus Corporation.
C. CON:FIDERATTON OF FEEDFSACK AND TO SUMMARIZE THE 1993 IDC
BANQUET.
Enclosed in the agenda was a summary of banquet attendees and
donations. The banquet revenue and expenditure report
indicated a net profit of $5.944.13 making this the first year
the IDC met their proposed budget profit. Koropchak
congratulated IDC members on a jolr> well-done and further rioted
that 17 industries participated or made a donation towards
economic development setting another new record. Also,
enclosed were le'cters of various banquet comments. In
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IDC MINUTES
NOVEMBP:k 18, 1993
response to Dr. Bunsen and Culver`s invitation, IDC members
suggested Koropchak schedule a date in 1994 to tour Dunwoody
Institute and invite the industrial businesses to join t?^ie IDC
members.
7. OTHEk BUSINESS.
a) Members were reminded of the Chamber meeting, today and
Expo '93 schedules for Sunday, November 21.
b) Koropchak reported continuous contact with
representatives from the Alexandria and Anoka-Hennepin
Technical Colleges who are pursuing space within
Monticello (NSP Training Center) for a flex-lab computer
training center.
c) Liberty Paper - Chairperson McVay reported that the
8O,c700 sq ft facility under construction in Becker is
scheduled for completion in October, 1994 with production
beginning June, 1995. Initial employment is 75.
8. ADJOURNMENT.
The IDC meeting adjourned at 8:35 a.m.
:7
~~
Ollie Koropchak, IDC Executive Director
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