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
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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".
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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
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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 &
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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
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