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IDC Minutes 03-16-1995MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, March 16, 1995 - 7:00 a.m. City Hall MEMBERS PRESENT: Vice President Kevin Doty, Treasurer Ron Hoglund, Shelley Johnson, Bon SmitYl, Jay Morrell, Ken Maus, Harvey Kendall, Merrlyn Seefeldt, Steve Lemme, Bill Tapper, Jim Fleming, and Councilmember Tom Perrault. MEMBERS ABSENT: John McVay, Arve Grimsmo, and Tom Lindquist. STAFF PRESENT: Ollie Koropchak. 1. CALL TO ORDER. Vice President Kevin Doty called the IDC meeting to order at 7:00 a.m. 2. CONSIDERATION _TO_ APPROVE THE NOVEMBER 17 AND DECEMBER 15,. 1994 , AND THE FEBRUARY 16 , 1995 , IDC MINUTES .~~~ --~~-~~~` Ron Hoglund made a motion to approve the November 17 and December 15, 1994, and February 16, 1995, IDC minutes. Harvey Kendall seconded the motion and with no corrections or additions, the minutes were approved as written. 3. CONSIDERATION TO HEAR AND ACGEPT THE MONTHLY IDG FINANCIAL REPORT . .-._.__..__.._..~.___._ Treasurer Hoglund reported a balance of $3,895.97 at First Bank and a balance of $8,278.10 at Marquette Bank for a total monthly balance of $12,174.07. The IDC Executive Committee has not met with Administrator Wolfsteller regarding the 1994 salary/benefits of $14,938.38. Ken Maus made a motion to accept the monthly IDC financial report as given. Steve-Lemme seconded the motion and with no corrections or additions, the financial report was accepted and filed. 4. CONSIDERATION OF PROSPECT_ UPDATES: a) ~ 150,000 sq ft distribution center - See attached letter. Upon the company's visit to Watertown, SD; the Governor flew-in and the company was told, "You will make money in SD." b) Quality Welding, Inc. and Rogen Corporation - City received an offer from Quality Welding on February 13. On February 27, the City Council approved a counter-offer of $61,700 with all additional provisions removed from the company's offer for Lots 5 and 6, Block 1, OIP Second Addition. Counter-offer is valid for two months with no Page 1 e IDC MINUTES MARCH 16, 1995 guarantEe of TIF. Previously on February 7, the HRA gave preliminary concept approval for the use of TIF. Pay-as- you-go land write-dawn of $40,000 upon receipt of a letter testing at the TIF "but for" test. Construction of a 15,000 sq ft metal building, estimated annual taxes of $16,000 ($144,000), 10 current jabs and creation of 15 jobs by 1997 at $9.50 to $10.00 wage per hour. Over the life of the TIF District (11 years}, the city would have an estimated HACA Loss of $30,103 (NPV @ 8~} and the tax increment is estimated at $48,157 (NPV t? 8~). On March 7, Koropchak contacted Ron Johnson. He had heard no word from the City and assumed the City was not interested. They are now looking at Becker. c) Steinwall, Inc. - Estimated per square fact cast of the 52,000 sq ft block building and five acres of land at Highway 10 and Hanson Blvd, Coan Rapids, was approximately $24.00 per sq ft. Other costs are electrical and plumbing upgrades and relocation expenses. d} 15,000 sq ft building to lease - will be meeting with company tomorrow. e} Polaris Micro Technologies, Inc. - New company, produces custom-build micro computers for small businesses and educational institutes. Specialty is training. Looking far 1,00-2,000 sq ft showroom/office. Wanted information on available financial incentives and lease space. f) Innovative Creations, Inc. - Has business plan, no bank financing. In research and development stage, manufacturers computer service device which regulates the MN driver (markets the transportation systems.) BRE REPORTS: a} Sunny Fresh Foods - Had heard of a joint-venture with JScB Meats of St. Michael to construct freezer space. Contacted Joe Campbell, no joint-venture with J&B; however, may rent space as with Bell Ca, St. Paul. Potential expansion of officeJproductian in the future. b) H-Window Company - Steve Burnham, MN Trade Office reported the H-Window will be represented in the MN booth at the Home Builders Trade Show in Japan. Mr. Lemme reported the window company is retooling for a new hinge and casement to be price competitive. Don Smith reported Erik Fjerdinstad returned to the family-owned window business. c) Tire Service Mfg Equipment - See attached. d) Remmele Engineering Plant 40 Big Lake - At the Quad County meeting, Curt Jacobsen, new City Administrator of Big Lake, reported Plant 40 would expand this summer. e} Standard Iron - See attached newsletter "Update". Page 2 IDC MINUTES MARCH 16, 1995 f) Genereux Fine Waad Products -- Bill Tapper reported he would firm up agreements with the bank this week and with the architect next week. The preliminary SBA application was accepted and other criteria far the final application is in progress. The manufacturing addition will be 17,000 to 20,000 sq ft, parking in rear to enhance truck movement. Fifteen new jobs. g} M&P Transports - Being landlocked, M&P purchased Lot 2, Block 3, OIP, far additional storage and parking. This lot is not contiguous to his existing facility. The City Ordinance does not address or regulate storage/parking of parcels which do not contain a primary use. After a couple of meetings with staff, Jay Morrell was looking for a recommendation from the IDC. Twa options are a conditional use permit or a tEmporary permit (5 years}. A similiar situation occurs far Bridge Water Telephone with the need for off-street parking. The City of Blaine has same lots designated for storage only which require surfacing with a classified product and screening. Not a big tax revenue generater. Although this may make some sense, Ken Maus had concerns about the future and gave examples cf similiar requests by boat storage and blacktop firms. The IDC discussed the potential of a conditional use permit in the I-2 Zone for use and storage associated with that of an exi_stinq_ business fallowing notification to the existing businesses. Bill Tapper made a motion encouraging the City Council to invent an appropriate use to accommodate the unusual reed of an existi__'~ industrial business. Ken Maus seconded the motion and with no further discussion, the motion passed unanimously. Due to the lack of a labor force, Jay Morrell recommended a regional effort be made to establish a tie with trade schools. 5. CONSIDERATION TO REVIEW THE IDC _SUBCOMMITTEES___AND_ BRE NETWORKING APPOINTMENTS . ~ ~~ w ~~ ~~W~ Koropchak thanked members for returning the request forms and reported most individuals were appointed to their first choice of subcommittee or businesses. If changes are requested, those would be accommodated. 6. CONS_ IDERA_TION TO _HOST THE_BRE BREAKFAST_._ a) Thursday, April 20, 1995 u-~~7:30 a.m. - Koropchak requested a confirmaticn far balding the BRE Breakfast at the Riverwood Metro Business Resort. Last year, 55 Page 3 IDC MINUTES MARCH 16, 1995 individuals attended the breakfast for a cost of $372.06. Having checked availability of the resort, the breakfast will cost $8.44 per person including buffet, tax, and gratutity or $422 if 50 individuals attend. The BRE Subcommittee will make final arrangements far the event keeping in mind its objective of networking and consider reducing time of introductions. IDC members were reminded to contact their appointed BRE business and to encourage them to attend. Koropchak will mail letters to all businesses announcing the breakfast date. IDC members agreed to hold the event at Riverwood at the stated price. 7. CONSIDERATION OF A PROGRESS REPORT OF THE COMPREHENSIVE PLAN UPDATE_'_._.._..____.._.,___.._.w___..._._._,. _____...~.__..._.__._....~.......__._......_.._._.._....._.._.._._.__._._.____ .._... Report was mailed with the agenda. 8. OTHER EUSINESS. a) IDC Banquet Date - Recommended dates were the fourth Tuesday, October 24, ar the fifth Monday, October 30, 1995. Since five Mondays exist and to avoid a conflict of interest with school activities, the IDC elected Monday, October 30, 1995 as the IDC Fundraiser Eanquet date. Karopchak circulated a copy of Dr. David Landswerk's resume, a recommendation Pram Charlie Hermann. Shelley Johnson reported he has heard Dr Landswerk speak and he's excellent. The speaking fee is $1,000 which includes mileage. He requires an overhead and screen. Recruitment of a speaker and funding far the speaker was referred to the BRE Subcommittee. b} Chamber meeting today, noon, at the American Legion. Speaker is Senator Mark Ourada. "Chamber Day at the Capitol", March 22, 1995. Car pool leaves City Hall at 6:15 a.m. Ken Maus, Ron Hoglund, Tom Perrault, and Jim Fleming expressed interest in attending. Business Expo date, Sunday, November 12. c} HRA/City Council TIF Workshop/Meeting - Thursday, March 16, 1995, 7:00 p.m. , City Hall. IDC members were invited to attend this workshop. HRA Steve Bubul of Holmes & Page 4 IDC MINUTES MARCH 16, 1995 Graven will facilitate the workshop. Jim Fleming and Shelley Jahnsan, unable to attend, requested copies of handouts. d} The City Council appointed Bill Demeules as a commissioner of the EDA at the recommendation of the EDA. e} Darrin Lahr, NSP Community Service Representative for the Northwest Region, is a new member of the Wright County Partnership. With the potential hiring of part-time staff person, location of staff person may be at the NSP- Monticello Administration Building or at the new Wright- Hennepin Electric Building in Rockford. Buffalo City Administrator reported Buffalo developed a new industrial park, 40 acres awned by the City. Lake Pulaski is now fully served by city sewer and water. The partnership will complete their annual report and begin their membership drive. MTED Representative Wenner repart2d on the Enterpreuership Program for High School Students and of Bridgemen's franchise and schlarships. 9. ADJOURNMENT. The IDC meeting adjourned at 8:15 a.m. Ollie Koropchak, IDC Executive Director Page 5