IDC Minutes 12-16-1993MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
• Thursday, December 16, 1993 - 7:00 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Treasurer Ron Haglund, Shelley Johnson,
Don Smith, Lowell Schrupp, Arve Grimsmo, Jay
Morrell, Ken Maus, Dennis Taylor, and Mary
Micke.
MEMBERS ABSENT: Harvey Kendall, Dave Peterson, Linda Mielke,
Tom Lindquist, Steven Lemme, Merrlyn Seefeldt,
Cyndie Johnson, and Dr. Glenn Nemec.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie
Koropchak.
CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 7:08 a.m.
2. CONSIDERATION TO APPROVE THE NOVEMBER 18, 1993 IDC MINUTES.
Mary Micke made a motion to approve the November 18, 1993 IDC
minutes. Seconded by Ron Hoglund and with no corrections or
. additions, the minutes were approved as written.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY FINANCIAL REPORT.
Treasurer Hoglund reported balances at Marquette Bank of
$10,306.19 and at Metropolitan Federal of $1,899.11 for a
total balance of $12,205.30. Arve Grimsmo made a motion to
accept the monthly financial report as given. Seconded by
Kevin Doty and with no corrections or additions, the report
was accepted and filed. Koropchak reported the total revenue
received from the banquet was $8,600 for a net profit of
$6,244.13.
4. CONSIDERATION OF PROSPECTS:
a) Steinwall, Inc. - The Monticello financial proposal was
prepared and received by Maureen Steinwall. The company
has not made a site selection. The Monticello Prospect
Team is scheduled to tour the Steinwall Fridley facility
on Monday, January 17, 1994 at 10:00 a.m. Koropchak will
mail a letter of confirmation to those attending.
Additionally, Koropchak encouraged IDC members to contact
Ms. Steinwall.
b) Berns, Inc. - Mike Berns cancelled his visit to
Monticello which was scheduled for December 2. Koropchak
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has been unable to make contact with him to reschedule
the visit.
c) Polycast, Inc. - Koropchak met with Roy Schulz and his
son on November 23. Company plans are not to expand in
Annandale because of no available land. Lot 3, Block 3,
OIP, Monticello, will become available after January 1,
1994 at an asking price of $14,000 per acre. The Letter
of Intent, $5,000 check, and copy of a purchase agreement
were explained as necessary prior to HRA authorization to
establish a TIF District. Additonally, the contexts of
the Redevelopment Contract and the need for a letter of
credit in the amount of the estimated annual property tax
was explained. Thereafter, Koropchak spoke with the
Annandale City Administrator who acknowledged if the
company was going to lead Annandale he' d prefer they stay
in Wright County.
d) Clow Stamping, Inc. - In an effort to find 28,000 sq ft
of leasing space for a metro industrial company,
Koropchak contacted Rick Clow. In order to increase the
company's efficiency, the company plans to move the
distribution warehouse to Merrfield in 1995. The company
is unable to sell the Monticello facility until 1995
because of an Industrial Revenue Bond clause.
e) Dungannon/Monticello Connection - Enclosed with the
• agenda was a copy of the letter faxed to the Dungannon
District Council which is similiar to the Monticello City
Council. The letter outlined a suggested itinerary and
dates. At this time Koropchak has heard no response.
Don Smith reported that the City of Dungannon had a
population of approximately 25,000 to 30,000 and covered
a much larger area than Monticello. It is assumed that
the visiting guests will not necessarily be Rotarians nor
do we know how many plan to visit Monticello. Their
objective is economic development which includes the
opportunity to visit local industrial businesses.
f) Advanced Food Sciences, Inc. - Koropchak received a
telephone call from Mr. Peter Lytle on Tuesday stating
that Monticello was cut from the site selection list
because Monticello's proposal letter requested corporate
guarantees and he thought maybe Monticello misunderstood
Advanced Food's financial request. Because he and Mr.
Devine liked the community of Monticello, they were
willing to give Monticello a second chance. Rick
Wolfsteller agreed with BDS, Inc., unless corporate
guarantees were provided indicating company committment,
the City of Monticello should not ask tax payers to risk
$15 million for research and development project or
build/lease a specialized 21,000 sq ft building with an
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estimated assessed value of $40 per square foot compared
to estimated construction costs of $140 per square foot.
Koropchak asked for input from the IDC members. With no
comment , i t i s assumed the IDC affirmed BDS , Inc . and Mr .
Wolfsteller's position.
g) Pampered Pets, Inc. - All construction permits have been
issued by the building official. Koropchak has had no
communication with Nancy Volin since the banquet.
BRE UPDATES:
a) Genereux Fine Wood Products, Inc. - Mr. Tapper
anticipates a 19,000 sq ft manufacturing expansion in
1994. Increased property taxes have been estimated and
presented to Mr. Tapper for potential additional TIF
assistance.
b) ABK, Inc. - Minnesota Technology, Inc. has assisted ABK
with preparation of a business plan and Mr. Andrusko has
inquired about the availablity of loan funds from the
City. The company needs financing assistance for
replacement equipment totaling $40,000. This to increase
efficiency, be competitive, and fill drapery orders. The
company hopes to construct a facility upon expiration of
their lease agreement in 1995.
c) Sunny Fresh Foods, Inc. - Jeff O'Neill reported that
• Burlington Northern granted Sunny Fresh the right to use
the Fifth Street right-of-way and Sunny Fresh anticipates
a 1994 building expansion. Although building
configurations have not been formalized, preliminary
plans include construction of loading docks which could
potentially re-route traffic away from Fourth Street.
Don Smith added with the company's increased growth and
employment, Cargill officials have authorized the
dollars; however, debate still exists on "how best to
utilize the authorized dollars".
d) Standard Iron and Wire Works, Inc. - Enclosed with the
agenda was a copy of the letter from the Minnesota
Department of Trade and Economic Development awarding the
$250,000 grant to Wright County for the Monticello
project. The county will loan the grant dollars to
Standard Iron at a 6A; interest rate over ten years with
a balloon payment in year seven. Koropchak reported that
a verbal award committment has been received from the
Central Minnesota Initiative Fund for the $100,000 loan
request.
e) H-Window Company - Koropchak reported according to Mr.
Lemme, the H-Window Company will satisfy the State's
additional requested requirements for final application
submittal this week. The City of Monticello's $400,000
grant request to the State is for H-Window equipment.
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Building construction continues with the second-floor
office expansion being erected this week.
f) Lake Tool, Inc. - Koropchak reported that Eric Bondhus
and his brothers now occupy the Oakwood Drive facility
which they purchased last year and anticipate marketing
their Minneapolis facility in early 1994.
g) Tire Service Equipment Company - Koropchak reported on a
conversation with Ray Schmidt. Mr. Schmidt indicated the
company was in the process of acquiring another out-of-
state business and that Tire Service has diversified
their product-line to include the production of
automobile service equipment such as tire jacks, etc.
Additionally, he expressed the need for rental space and
the potential to expand their facility in the near
future.
Koropchak asked for BRE reports from IDC members. There being
none, the meeting continued.
5. CONSIDERATION TO REVIEW IDC YEAR-END MEMBERSHIP TERMS.
Enclosed with the agenda was a copy of the IDC Length of
Membership Terms Guideline intended to serve as a reminder for
• members. Koropchak reminded members this was established as
a polite-way for IDC members to resign if so desired and was
not intended to encourage resignation. General IDC membership
size is not-to-exceed 16 to 18 individuals. Lowell Schrupp
expressed the likelihood of resigning and Ron Haglund
indicated he would be filling the IDC membership as Chamber
Vice-President; therefore, two seats may be available. Two
potential replacements suggested were Jim Fleming, an
attorney, and Charlie Pheffer, an industrial land developer.
Membership will be considered at the January meeting.
Additionally, IDC members were reminded "In order to make a
positive contribution to the committee, an annual meeting
attendance of 75~ is expected." Koropchak congratulated Ken
Maus and Ron Hoglund for 100%K attendance at the eleven 1993
IDC meetings.
6. CONSIDERATION OF PROJECT UPDATES:
a) Dunwoody Institute Tour - IDC members indicating an
interest to attend the January 13 tour included Don Smith
and John McVay. Those unable to attend were Ken Maus,
Ron Hoglund, and Lowell Schrupp.
b) Star City Recertification - As per the enclosed letter
from the Department of Trade and Economic Development, no
formal Star City Re-certification is required. However,
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the 1993 Work Plan will be assessed, 1994 Goals and
Objectives will be written, and a 1994 Budget will be
proposed for IDC adoption in January.
c) Economic Development Partnership of Wright County, Inc. -
Ken Maus informed the IDC of the City Council's
discussion on the merit of the county program as it
relates to the City of Monticello. The council approved
membership on a 3-2 vote based on the assumption of an
annual $500 membership contribution from the IDC.
Councilmember Fyle's concern was the unequal municipal
membership fee. Koropchak will serve on the Board of
Directors and the Code of Ethics Committee. Mayor Maus
suggested Koropchak consider a one-year board term to
prevent any potential conflict-of-interest.
d) Quad County Development Network - The Quad County group
will meet in Monticello on January 26, 10:00 a.m. at City
Hall. At the November meeting in Howard Lake, the group
finalized the "blue-print" report for submittal to the
State.
e) Metro Phones - Koropchak reported that proposed metro
phone rate additives were submitted to the Public
Utilities Commission (PUC) last week. The proposed rate
additives for R-1 is $23.15 and for B-1 is $35.78. One
twist according to David Sharp, PUC, whether to endorse
the proposed rate additives because of the estimated 6.3
simulation level used to determine the proposed rate
additive. For the approved Waconia rate, the simulation
level used was 7 and in a recent survey the average metro
useage was only 2 to 4. The lower the simulation level
used the lower the proposed rate additive. The PUC will
consider a reduction in rate additives after a metro
phone balloting has been approved, upon request.
f) Alexandria-Anoka/Hennepin Technical Schools - In a
discussion with Frank Starke, President of Alex Tech, the
process continues in the development of flex-lab training
center in Monticello. In order to market the program and
course of study, one of Mr. Starke's marketing plans
include a February complementary breakfast with
industrial businesses, IDC members, and Chamber Board
members. IDC members were asked if they would be
interested in co-sponsoring the breakfast at no cost to
the IDC. IDC members were willing to co-sponsor the
breakfast, only, at no cost.
7. OTHER BUSINESS.
a) Chamber President Micke reminded the IDC that no Chamber
meeting is scheduled for today and the Annual Banquet is
scheduled for Tuesday, January 25, at the Riverwood
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Conference Center. "Business of the Year" will be
announced.
b) Chairperson McVay reported a few IDC members have
indicated the 7:00 a.m. starting time was too early and
suggested the IDC try convening at 7:30 a.m.
Additionally, it was suggested to condense the prospect
update by adding to the agenda a one-line supplement
update where appropriate; therebye, allowing more time
for other discussion. In order to improve attendance and
to establish a quorm, the IDC agreed to convene at 7:30
a.m. beginning with the January meeting.
c) Koropchak informed members that the Council authorized
OSM and RCM to begin a facility plan study for the
Wastewater Treatment Plant. The study will include
optional site locations. Chairperson McVay noted the
potential need for two in-takes and two out-takes as a
result of increased muscle-shell in the Mississippi
River. Jay Morrell inquired about the existence of the
once industrial storm sewer managment plan to drain lands
to the wetland pond west of South Highway 25 and south of
the Glass Hut. Because the property is privately-owned,
the water-level cannot be raised according to State or
Federal regulations.
d) Koropchak reported Christmas greetings were mailed to
• industries and banquet supporters on behalf of the IDC.
Also, a card was mailed to Senator Betty Adkins.
8. ADJOURNMENT.
The IDC meeting adjourned at 8:15 a.m. A reception followed
honoring Lowell Schrupp for his 12 years of volunteer service
as a Housing and Redevelopment Authority Commissioner.
~9.~ \~~
Ollie Koropchak, IDC
~~
cutive Director
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