IDC Minutes 08-18-1994MINUTES
,~ MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, August 18, 1994 - 7:30 a.m.
City Hall
MEMBERS PRESENT: Chairperson John McVay, Vice Chairperson Kevin
Doty, Treasurer Ron Hoglund, Don Smith, Jay
Morrell, Ken Maus, Harvey Kendall, Tom
Lindquist, Merrlyn Seefeldt, Dr. Glenn Nemec,
Bill Tapper, and Jim Fleming.
MEMBERS ABSENT: Arve Grimsmo, Shelley Johnson, Mayor Brad
Fyle, Steven Lemme, and Cyndie Johnson.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
STAFF ABSENT: Jeff O'Neill.
GUEST: Chuck Rickert, OSM.
* PRESENTATION BY OSM AND CONSIDERATION TO DISCUSS THE
TRANSPORTATION STUDY.
Chuck Rickert reported that the completed Transportation Study
was submitted to MNDOT, with no response at this time. Data
used was 43 24-hour traffic counts conducted within the city,
land use, city divided into 9 internal zones, potential
development through 2015, completion of School Blvd to Highway
25, and completion of 7 Street from Elm Street to County Road
118.
Three concentrated areas and options presented:
Option 1. Completion of on/off ramps at Cty 118. This would
not help Hwy 25 traffic but would relieve on/off ramp traffic.
Option 2. Upgrade to four-lanes State/Cty 75 from Hart Blvd
at school to E 39 & 118, maybe to 75 ramp. Widen and improve
intersection of West 39 and 75.
Option 3. Improvements along Highway 25 south of I-94.
Extend Chelsea Road from Cty 117 to 25.
Next, Mr. Rickert detailed and ranked the options for
improvement for years 1994 to 2000.
Rank 1. Cty 75 four-lanes between Hart Blvd and Cty 39. Of
the projected one million cost, the city would be
responsible for storm sewer, curb, and gutter.
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IDC MINUTES
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Rank 2. New Hart Blvd to Front Road. Total projected
$300,000 would be incurred by the city.
Rank 3. On/off ramps at Cty 118. Twenty-percent of the
projected $400,000 would be incurred by the city.
Applying to MDOT, potential '97-'98 construction.
Rank 4. Signal improvements and timing between Oakwood Dr
and Cty 75. State responsible for total projected
cost. of $100,000.
Rank 5. Widen Cty 118 to four-lanes between Cty 75 and
School Blvd. Of the projected one-million cost,
the city would be responsible for storm sewer,
curb, and gutter.
Although Rank 6. (Fallon Avenue overpass) was projected beyond
year 2000, Mr. Rickert would like to see this occur earlier.
With the anticipated growth to the southeast, Fallon would
serve as an alternate to Hwy 25 or Cty 118.
Mr. Rickert responded that the completion of Hwy 101 between
Rogers and Elk River would have no impact on the Monticello
Transportation Study. The Wright County Study will consider
potential future I-94 interchanges to the west of Monticello.
With no concentration of the McDonald's Oakwood Dr and Hwy 25
intersection within the study, Mr. Rickert responded to Ken
Maus' question. He foresees the potential to eliminate left-
in and out Oakwood Dr. access from Hwy 25 with the extension
of Chelsea Road to Hwy 25. Ken Maus felt that decision should
be made now, not 5-10 years later. This to constitute good
planning and to prevent unnecessary frustrations to commercial
businesses.
1. CALL TO ORDER.
Chairperson McVay called the IDC meeting to order at 8:00 a.m.
2. CONSIDERATION TO APPROVE THE JULY 21, 1994 IDC MINUTES.
Kevin Doty made a motion to approve the July 21, 1994 IDC
minutes. The motion was seconded by Tom Lindquist and with no
additions or corrections, the minutes were approved as
written.
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IDC MINUTES
AUGUST 18, 1994
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
Treasurer Hoglund reported a monthly balance at Metropolitan
Federal of $3,881.45 and a monthly balance at Marquette Bank
of $1,251.68 for a total of $5,133.13. Harvey Kendall made a
motion to accept the monthly IDC financial report as given.
Dr. Glenn Nemec second the motion and with no additions or
corrections, the financial report was accepted and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
With no additions to the prospect update, the update was
accepted. It was suggested that the Prospect Team visit
Quality welding and Micro-Tech.
BRE REPORTS:
The written BRE update was accepted.
Merrlyn Seefeldt informed IDC members of Electro Industries
interest to market their existing 25,000 sq ft for future
construction of a new facility on their adjoining lot.
Ken Maus and Jay Morrell will give their BRE reports in
September.
Don Smith congratulated the city staff and the IDC on the
recruitment of Standard Iron & Wire Works. Stating this one
of the most impressive industrial headquarters to locate in
Monticello. Merrlyn Seefeldt gave an example of industrial
network-exchange as Standard Iron has contacted Electro for
out-source services.
Additionally, Don reported that he believes it is the intent
of the H-Window to host an open house in late September.
Koropchak informed IDC members of the Governor's proclamation
of October 17-21 as Minnesota Manufactures Week. The BRE
Subcommittee will consider incorporating this into the October
25 Banquet theme.
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5. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Finance - Treasurer Hoglund reported that Chairperson
McVay and he met with City Administrator Rick
Wolfsteller. The meeting centered around the IDC request
for the City of Monticello to consider subsidizing a
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IDC MINUTES
AUGUST 18, 1994
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greater portion of the Economic Development Director's
salary therebye allowing more dollars for IDC activities.
Wolfsteller will include the request into the proposed
1995 City Budget for Council consideration.
b) Planning (Executive) - Vice Chairperson Doty reported on
membership history and the logic used by the subcommittee
for the following request. The subcommittee request the
IDC membership elect Ken Maus to fill the position
vacated by Linda Mielke and not to fill the position
vacated by Dennis Taylor at this time. Upon Ken's
resignation as Mayor, Mayor Fyle has been invited to fill
the mayor's seat. Due to Mr. Fyle's seasonal business,
he has elected not to join us during the construction
season.
Jim Fleming made a motion to elect Ken Maus to fill the
seat vacated by Linda Mielke and at this time, not to
replace the seat vacated by Dennis Taylor. The motion
was seconded by Merrlyn Seefeldt and with no further
discussion, passed unanimously.
c) Infrastructure - Building Permit Fee Survey - Acting
Chairperson Kendall summarized the subcommittee meeting
by stating that members reviewed the residential building
permit survey (based on an EMV of $92, 000) as prepared by
Jeff O'Neill and found the City of Monticello to be on
the low-end. Additionally, with contract services for a
part-time building official to assist with the demands of
increased development and the necessary funding for
future storm sewer and the waste water treatment plant
developments, the subcommittee made the following
recommendations for IDC approval.
1. Recommends a general rate adjustment for Monticello
to remain competitive with communities of equal
size, OR
2. a) Recommends an increase of $200 for residential
plan review or a $254 fee. Commercial/industrial
is not impacted because fees are based on the 1985
State Uniform Building Code Standards.
b) Recommends no increase for residential or c/i
water hookup fees.
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IDC MINUTES
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c) Recommends an increase of $900 for the
residential sewer hookup fee or a $1,200 fee. Has
little or no impact on c/i development.
d) Recommends a minimum charge of $100 for storm
sewer access. The amount subject to the design of
the housing subdivision or amount credit for on-
site ponding. C/I impact not discussed, AND
Recommends the City Council consider setting a levy
for the future upgrade of the waste water treatment
plant.
Koropchak added that the Public Works Director hopes the
projected Waste Water Treatment Plant expansion cost to
be less than five million and if a second plant is
necessary the projected cost at eleven million or less.
For the purpose of fee recommendations, the construction
of 83 homes per year was used and it was stated that 330
residential lots are on the drawing board for 1995-96.
Additionally, Koropchak noted that since the subcommittee
meeting it has become apparent that the recommended
residential sewer hookup fee and storm sewer access
charge do impact c/i developments and the proposed
increase of fees will not be on the August 22 Council
agenda.
First, City Administrator Wolfsteller informed IDC
members that c/i sewer hookup fees are now charged on the
current base rate of $300 per unit. One unit equals 250
gallons of water. Gallons determined by business size or
number of employees. Generally, four times greater than
the base rate or as recommended would be a projected c/i
sewer hookup fee of $4,800.
Secondly, City staff is suggesting a c/i storm sewer
access charge of greater than $1,500 per acre and based
on the amount of water discharged into the storm sewer
system.
Thirdly, Mr. Wolsteller stated that setting a tax levy
would cost residents and businesses more than financing
through a referendum or bonding. Mr. Simola felt a
referendum to finance the waste water treatment expansion
would not pass at this time.
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IDC MINUTES
AUGUST 18, 1994
IDC members suggested the consideration of a sliding
scale for c/i fees and questioned the City's objectives:
Promotion of c/i development, residential development or
a mix.
Harvey Kendall made a motion recommending the completion
of a c/i building permit fee study with communities of
equal size and recommended the City Council consider a
general rate adjustment for building permit fees in order
for Monticello to remain competitive. Additionally, they
did not recommend a tax levy for future upgrade of the
treatment plant. After asking if these fees applied to
first-time construction and not for expansions or
additions, Tom Lindquist seconded the motion.
Wolfsteller replied one-time fee for residential;
however, an industrial expansion with the addition of
added employees may constitute an additonal hookup fee
or access charge. The motion was not approved, as a call
for final approval was not made.
Defining and establishing a pole barn ordinance -
Koropchak clarified that metal buildings have always been
allowed in I-1 and I-2 zones and only with the use of
HRA-TIF is brick-facing encouraged. Industrial
businesses have never been told they had to construct a
non-metal facility within the I-1 or I-2 zones; however,
businesses were told the City was encouraging precast,/v~o.n
construction along Chelsea Road as a gateway to the BC
Zone. In order not to discourage the metal construction
industry, yet, to encourage higher quality or non-metal
developments, the subcommittee recommended that the
Planning Commission define and establish a sufficent
fortified footing design standard for the I-1, I-2, and
BC Zones. IDC members felt additional time was necessary
to further discuss this issue and to cover the remaining
August IDC agenda. Therefore, it was recommended to call
a special IDC meeting prior to the September 6 Planning
Commission meeting. Date to be announced.
6. OTHER BUSINESS.
Members were reminded that banquet tickets would be
distributed at the September IDC meeting. Koropchak
informed members that the Klein housing sub-division plat
and a rezoning request from St. Henri's Church may be on
the September Planning Commission agenda.
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IDC MINUTES
AUGUST 18, 1994
Chairperson McVay reminded IDC members of today's Chamber
meeting, noon, American Legion.
7. ADJOURNMENT.
The IDC meeting adjourned at 9:20 a.m.
n e< ~.
Ollie Koropchak, IDC Executive Director
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