IDC Minutes 09-15-1994• MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, September 15, 1994 - 7:30 a.m.
City Hall
MEMBERS PRESENT: Chairperson Jahn McVay, Vice Chairperson Kevin
Dcty, Treasurer Ron Hoglund, Arve Grimsmo,
Shelley Johnson, Don Smith, Jay Morrell, Ken
Maus, Harvey Kendall, Merrlyn Seefeldt, Steve
Lemme, Dr. Glenn Nemec, Bill Tapper, and Jim
Fleming.
MEMBERS ABSENT: Mayor Brad Fyle, Tom Lindquist, and Cyndie
Johnson.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie
Koropchak.
1. CALL TO ORDER.
Chairperson John McVay called the IDC meeting to order at 7:30
a.m.
2, CONSIDERATION TO APPROVE THE AUGUST 18 AND AUGUST 29 1994 IDC
MINUTES.
• Harvey Kendall made a motion to approve the August 18 and
August 29, 1994 IDC minutes. Dr. Glenn Nemec seconded the
motion and with no additions or corrections, the minutes were
approved as written.
3. CONSIDERATION TO HEAR AND ACCEPT THE MONTHLY IDC FINANCIAL
REPORT.
Treasurer Hoglund report?d a September balance of $3,848.21 at
Metropolitan Federal and balance of $2,253.97 at Marquette
Bank for a total balance of $6,102.18. The monthly revenue of
$1,000 was payment for the banquet guest speaker from
Marquette Bank and one disbursement of $39.94 for printing of
banquet tickets. Kevin Doty made a motion to accept the
September IDC financial report. Bill Tapper seconded the
motion and with no additions or corrections, the financial
report was accepted and filed as given.
4. CONSIDERATION OF PROSPECT UPDATES:
The written prospect update and BRE report was accepted
without further questions,
Additionally, Chairperson McVay added that Quality Welding's
current lease expires in six months. The availability of the
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• IDC MINUTES
SEPTEMBER 15, 1994
existing facility and the growth of the company are the
determinants in the decision to expand and relocate.
Kevin Doty reported negotiations continue for lease the second
flacr office space within Marquette Bank to Micro-Tech. The
tele-sales office would employ 14 individuals with annual
wages between $32,000 and $60,000. Micro-Tech manufacturers
ear-canals, a component part for hearing aids. The production
facility is located in Eden Prairie. Martie Jones of Jones
Manufacturing will contact Koropchak with the name of a
headhunter to assist with employment recruitment.
Administrator Walfsteller reported that the City Council on
September 12 accepted the purchase offer of $36, 000 for Lot 4,
Block 1, OIP Second Addition from Miley Gjertsen. The
purchase offer is contingent upon granting the H-Window
Company an extended 10-working day expiration date of the
Right of First Refusal. The parcel is 2.3 acres. The Right
of First Refusal and the Holding Agreement between the City
and the H-Window expired the end of December, na request had
been made for reconsideration of the matter.
• BRE REPORTS:
a) Ken Maus - Rainbow Enterprises, no report.
b) Jay Morrell introduced John and Martie Jones of Janes
Manufacturing, Inc. John and Martie, two of six
brothers, told IDC members that their father, a watch-
maker, started the business in the basement of his home
at the age of seventeen. Jones Mfg polishes, tumbles,
and plates fine jewelry and gems. In 1989, the company
employed 40 people. As gold prices increased and with
large operations in New York, the work sYiifted to
overseas causing a decrease in their employment to 24.
They anticipate to process 500 to 2,000 rings per day
next year.
Five years ago, the company relocated to Walnut and 4tYi
Street and entered the retail business. They've seen 200
increase in growth every year. A future venture may
include the opening of a second retail stare in a more
dense populated area. John manages the commercial
business and Martie the retail.
c) Arve Grimsmo referred to Steve Lemme for a H-Window
update. Mr. Lemme reported the company began the 25,000
sq ft manufacturing and 4,000 sq ft second--floor office
expansion last October. On September 24, the H--Window
• will host an open house for employees and the general
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• IDC MIPJUTES
SEPTEMBER 15, 1994
public. The 12:00-6:00 open house will consist of a
barbecue and tour of the facility and products. The
company anticipates the introduction of two new products
within the next couple of months.
The company originally purchased 10-acres of land, the
current facility utilizes five of those acre. Witt. the
$36,000 offer for Lat 4, the H-Window will focus on
making a decision on the westerly 5--acre, three-lot
parcels within the next month. The H-Window will not
stop purchase of the lot to Mr. Gjertseni however, they
have concerns regarding the potential of becoming
landlocked and question the value of a pole barn to store
sprinkler system supplies with projected annual taxes of
$6,000-$7,000. Korapchak acknowledged the H-Window visit
and tour by Commissioner Peter Gillette, the deputy
commissioner, Wood Pradur_.ts Industry Specialist Dentley
Haugesag, and Representative Mark Olson. Steve mentioned
US Representative David Minge had also toured their
facility.
. After same further discussion and the consideration of
what might be at stake, Shelley Johnson suggested and
Arve Grimsma made the motion to encourage City Council to
make every attempt to negotiate an agreement satisfactory
to both parties for the westerly three lots. Harvey
Kendall seconded the motion. Jay Morrell stated he vaould
not be in favor of the city holding the property without
any compensation as this would set a precedent far other
industrial businesses to make the same request. The
motion passed unanimously.
d) Tam Lindquist - absent.
e) Bill Tapper - Bill reported on both Genereux and
Westlund's growth and all-time high sales. Initiated
through the city, a financial proposal is being
structured for the 17,000 sq ft southerly production and
mezzanine/lunch roam expansion. The company is busting
at its seams and the expansion will also reshape the
production area for better shipping. All goes v:ell,
along with the general frustrations. The company
introduced four new-products in Atlanta. The B-Quick
products are a drilling machine for cabinetry, 2 plastic
cabinetry accessories which involved SMM and Aroplax, and
a roll-out cabinetry accessory.
•
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IDC MINUTES
SEPTEMBER 15, 1394
BRE Updates:
a) Sunny Fresh Foods, Inc. - In addition to the written
agenda supplment, Jeff O'Neill expressed he felt perhaps
a rail crossing at Locust can be accomplished with the
pull Cargill has with BN. The Planning Commission will
hold a public hearing and consider a variance request to
the yardset requirement on October 4. Members suggested
moving with caution because if the tracks or when the
tracks were abandoned would 5th street be utilized as a
street or for another purpose. Northwest Associates is
preparing land use and transportation study far the Sunny
Fresh area.
5. Consideration of Infrastructure and Planningt Commission
Updates:
The IDC accepted the written update. In addition, Jeff
O'Neill made the fallowing comments:
a) 15-minute Comprehensive Plan Update by Jeff O'Neill - The
process far updating the Comprehensive Plan must first be
determined and its anticipated the process will be
. determined by the first of the year.
b) Pole Barn Ordinance -- Because of the late September
Planning Commission meeting, the pro and can study
prepared by Northwest Associates was distributed to the
commissioners at 11:30 p.m. which was tea late for
consideration. The commissioners requested a
recommendation from the IDC.
Staff presented IDC members with five basic policy
options to consider for regulating pole building
construction. A pole building defined as any structure
characterized by its woad pole framing and lack of a full
perimeter foundation. With the general consensus of the
need for both a continuous foundation and asethetically
pleasing structures and the IDC's lack of expertise for
specifics, the members requested the planner consultant,
staff, and the Planning Commission establish a standard
footing design far principal structures within industrial
zones. Bill Topper's opinion was a company investing in
the construction of a larger 20,000 sq ft facility will
consider the long term life and value of the structure.
However for the startup business, economics is an issue
and should be considered in an outlined area.
c) Buffer, screening, and landscape requirement along
residential and industrial boundaries - IDC requested a
• special meeting cf all parties.
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IDC MINUTES
• SEPTEMBER 15, 1034
The written report was accepted by the IDC. In addition,
Yoropchak distributed banquet tickets and reminded members
that an accountability of tickets sold will be taken at the
October 20 meeting.
The written report was accepted by the IDC.
Don Smith requested that the 7:30 a.m. starting time for IDC
meeting be placed of the October agenda far review. It
appears with the longer agenda, this is conflict with business
opening hours.
6. Consideration of Subcommittee reports:
7. Other Business:
8. ADJOURNMENT.
The IDC meeting adjourned at D:10 a.m.
•
o~ ~<~
Ollie Y,oropchak, Execu
ve Director
•
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