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IDC Minutes 07-21-1994MINUTES • MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, July 21, 1994 - 7:30 a.m. City Hall MEMBERS PRESENT: Chairperson John McVay, Shelly Johnson, Arve Grimsmo, Don Smith, Harvey Kendall, Jay Morrell, Ken Maus, Tom Lindquist, Dr. Glenn Nemec, Cyndie Johnson, and Jim Fleming. MEMBERS ABSENT: Vice Chairperson Kevin Doty, Treasurer Ron Hoglund, Mayor Brad Fyle, Dennis Taylor, Merrlyn Seefeldt, Steve Lemme, and Bill Tapper. STAFF PRESENT: Ollie Koropchak. STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill. GUEST: Rotarian Jim Eastwood, Cookstown, Northern Ireland. 1. CALL TO ORDER. Chairperson McVay called the IDC meeting to order at 7:30 a.m. • 2. CONSIDERATION TO APPROVE THE JUNE 16, 1994 IDC MINUTES. Dr. Glenn Nemec made a motion to approve the June 16, 1994 IDC minutes. The motion was seconded by Harvey Kendall and with no additions or corrections, the minutes were approved as written. 3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL REPORT. In the absence of Treasurer Hoglund, Koropchak reported monthly balances of $3,874.76 at Metropolitan Federal and of $1,249.35 at Marquette Bank - Monticello for a total balance of $5,124.11. Arve Grimsmo made a motion to accept the monthly IDC financial report as given. Seconded by Dr. Glenn Nemec and with no additions or corrections, the financial report was accepted and filed. 4. WELCOME OF AND PRESENTATION BY ROTARIAN JIM EASTWOOD. Chairperson McVay welcomed Mr. Eastwood to the IDC meeting and asked Don Smith to introduce Jim Eastwood. In his introduction, Mr. Smith informed members that Mr. Eastwood ran two businesses in Cookstown, Northern Ireland. One, a sheet metal business which employs 10-12 people. The • Page 1 IDC MINUTES • JULY 21, 1994 company produces one product, a heating boiler, and its market is the United Kingdom. Secondly, he's director of the Cookstown Enterprise Center. Mr. Eastwood states that the Cookstown Enterprise Center is financed by the British Government and was developed to assist new small businesses (1-50 employees.) Larger businesses (over 50 employees) are assisted by the Industrial Development Board and European Fund. Ireland's high unemployment rate, 15 o to 22~, is the result of a decline in the agriculture, linen, and ship building industries as well as increased automation. The Enterprise Center is a hands-on support for startup businesses. Support initiates from the point of an idea through business plan preparation, operational training, etc. and funding. Purpose is to create good businesses. Their training is one of the best developed in Europe and more favorable than any in the US or Monticello. These loans are high-risk, non-returnable, and approval is based on knowledge of business. Loan amounts run from 1,000 pounds to 25,000- 30,000 pounds. Because of Ireland's geographic location, high unemployment rate, available land, and readiness; they are able to obtain large dollar amounts from the European Fund. Most recent, a large Korean industry, has agreed to expand to Ireland and will receive assistance in the neighborhood of 61 million pounds for training, relocation of key personnel, education, etc. Marketing consists of high-profile advertisement and education. The Enterprise Center tracking system indicates approximately 10~ of the creative ideas actually become a business and the success rate of the 10~ is about 50~. It takes about 12-18 months for a business to mature. Failure is generally cash related. Asked about industrial competition between Cookstown, Belfast, and Dungannon, Mr. Eastwood responded that the major difference between Belfast and Cookstown is transportation. Belfast is served by air and Cookstown by sea. Dungannon is the greater competitor because Cookstown and Dungannon have similar marketing strengths. Mr. Eastwood foresees the potential for an exchange of Cookstown-Monticello industrial expertise and joint-ventures. • Page 2 IDC MINUTES • JULY 21, 1994 While in Monticello, he visited Bondhus Corporation, Suburban Machine & Manufacturing, H-Window Company, and Sunny Fresh Foods. Chairperson McVay thanked Jim Eastwood and wished he and his family a pleasant return trip to Northern Ireland. 5. CONSIDERATION OF PROSEPCT UPDATES: The IDC accepted the written report. Chairperson McVay inquired of the interest to visit the Morton Builder's headquarter in St. Cloud regarding an expansion location to Monticello. Jim Fleming volunteered to participate. Ken Maus inquired to the status of Monticello's ordinance regarding allowable construction of pole barns or metal buildings and suggested this be resolved first. Additionally, McVay inquired of the potential for Clow Stamping to sell their Monticello real estate inorder to meet the needs of some prospects. Koropchak responded that previous inquiries indicated the ability to sell or to prepay industrial revenue bonds was null. • BRE UPDATES: In addition to the written report, Koropchak informed members that the $250,000 equipment grant to the City of Monticello for a loan to the H-Window has not been awarded by the State. The State request the award be funded by Federal dollars rather than the proposed State dollars. Major difference is the increased amount of accountability and documentation required by both the H-Window and the City. However, the City is able to retain the full $250,000 principal and interest payback for its revolving loan fund. Secondly, Ray Schmidt of the Tire Service Equipment Company has contacted the City Building Official regarding procedures necessary for expansion of their facility. BRE REPORTS: Shelley Johnson reported the Hoglund Bus Company has five different businesses within its organization. The five businesses are student transportation, commercial/coach, ambulance, bus sales, and used-vehicle restoration. The latter business, a new concept and going extremely-well, allows part-time bus drivers to become full-time workers. • Page 3 IDC MINUTES . JULY 21, 1994 They are short of space and employ 40-50 individuals, FT/PT. Shelley volunteered to contact and report on D&D Bus Service. Harvey Kendall reported on the NSP Nuclear Plant stating things have quieted down. The refueling outage is scheduled for September 15 to October 3. The plant relicense issue is on-hold. Due to company reorganization, the Monticello plant is downsizing its 300+ employment by not replacing individuals and cutting consultants. Harvey reports the new company buzz words are "repower and heat generation." No new sitings are being sought and the company has not given up on the extenion of nuclear power. In spite of other potential growth and expansion, one concern of the IDC is the potential de- valuation of property if the reactor was retired. Don Smith reported Sunny Fresh Foods' latest addition, now under-construction, was delayed by financing. An open house is planned upon completion of the employee lounge, office, and production area. Sunny Fresh continues to invest in Monticello through expansion and upgrading. Additionally, they continue to work with the City to improve traffic circulation patterns. • Next month reports by Ken Maus and Jay Morrell. 6. CONSIDERATION TO ACCEPT LETTER OF RESIGNATION FROM IDC MEMBER DENNIS TAYLOR AND CONSIDERATION OF REPLACEMENT. Dr. Glenn Nemec made a motion to accept the letter of resignation from Dennis Taylor. Seconded by Jim Fleming and with no further discussion, the motion passed unanimously. Koropchak informed IDC members that Mr. Bob Mosford, a member of the Economic Development Authority (EDA), expressed interest in IDC membership. Jim Fleming endorsed Mr. Mosford as a candidate. Consideration for a replacement was referred to the Planning (Executive) Subcommittee to review the existing list of candidates and to make a recommendation at the next meeting. The committee can also elect not to fill the position immediately. 7. CONSIDERATION OF SUBCOMMITTEE REPORTS: a) Legislative - No report. b) BRE - Tom Lindquist requested IDC discussion and consideration to accept $1,000 from Marquette Bank - Monticello as a contribution for the banquet speaker's fee . Thi s in exchange for ink on the banquet program and • Page 4 IDC MINUTES • JULY 21, 1994 perhaps ticket. John McVay made a motion to accept the $1,000 contribution from Marquette Bank - Monticello for exchange of ink on the program and perhaps ticket. Ken Maus seconded the motion and suggested keeping the sponsorship low-keyed. With no further discussion, the motion passed unanimously. c) Infrastructure - At the August 18 IDC meeting, OSM will give an overview of the recently completed Transportation Study and Jeff O'Neill will report on the process of Comprehensive Plan Update. d) Education - Shelley Johnson reported a Tech-Prep School Program is under consideration with local contacts being made to individuals like Brad Barger and Rusty Demeules. Technical schools and colleges would also be brought in. e) Marketing - No report. 8. OTHER BUSINESS: a) No Chamber meeting in July. b) Other - Koropchak informed members of the Governor's Design Team which originally was under the Department of Trade and Economic Development (TED). With a conflict of interest, the team no longer operates under TED and operates as a separate volunteer organization. The 16- member team is comprised of various professionals: Engineers, planners, social workers, economic development, marketing, etc. They arrive on Thursday evening, housing is through home-stays, and leave Sunday morning. The intense two-day brainstorming is attended by about 50-60 community residents who assess the needs of the community. Saturday evening a banquet is held and the team presents its findings and recommendations. Koropchak reminded members that findings and recommendations are no good without an implementation plan, commitment, and a budget to back the plan. Although physical attributes are evident, the greatest results to both Becker and Clearwater was the development of togetherness, positive city/township attitude of cooperation, and established uniform objectives. Koropchak stated she was by no means suggesting the City of Monticello was at the point of smaller communities. Monticello is a great community with many strengths; however, she questions if the timing is right to investigate new ideas, improve what exists, establish uniform objectives. With the growth of the community, Page 5 IDC MINUTES JULY 21, 1994 individuals have expressed the sense of a lack of uniform community objective. The team fee is $3,000. Organization, participation, and commitment of the six- month planning process is key to the success of the two- day assessment. Involvement consists of the young and old, all organizations, and city and township residents. A community application must to submitted six-months prior to the scheduled weekend event. The IDC was receptive to the idea based on the preliminary concept. Suggestion was to contact cities equal in size to Monticello for results-orientated program benefits and non-benefits. They did not see the IDC as the coordinating organization. And further suggested contacting other organizations and the city for input prior to considering a presentation by a team- member. 9. ADJOURNMENT. The IDC meeting adjourned at 8:55 a.m. Ch ~GL~ ~~ Ollie Koropchak, IDC Executive Director • Page 6