IDC Minutes 05-18-1995MINUTES -
MONTICELLO INDUSTRIAL DEcJELOPMENT COMC9ITTEE
Thursday, May 18, 1395 7:00 a.m.
City Hall
MEMBERS PP.ESENT: tJice Chairperson Kevin Doty, Treasurer Rcr~
Hoglund, Shelley Jchnscn, Arve Gx°imsmc, Dare
Smith, Jay Morrell, Kon Maus, Harvey f:cndall,
Merrlyn Se~feldt, Tom Lindquist, Bill Tapper,
Jim Fleming, and Councilmember Tom Perrault.
MEMBEP.S ABSENT: Cr~airperscn John McVay and Steve Lemme.
STAFF PP.ESENT: Jeff O'Neill and Ollie Kcropchak.
1. CALL TO ORDER.
Vice Chairperson Doty called the IBC meeting to order at 7:00
a.m.
2. CONSIDERATION TO APPP.OVE THE MARCH 16 1995 IDC MINUTES.
Ran Haglund made a motion to approve the March 16, 1995 IDC
minutes. Secanded by Jim Fleming and with nc corrections cr
additions, the minutes were approved as written.
3. CONSIDERATION TC HEAR AND ACCEPT THE MONTHL~I IDC FINANCIAL
REPORT.
Treasurer Haglund reported a monthly balance at First Bank cf
$3,913.09 and a balance at Marquette Bank of $7,198.41 for a
total cf ;11,111.50• Disbursements included $422.21 to
Riverwcad Metro Business Center for the BRE Breakfast and
$1,500 and $2,000 tc the City of Monticello. The $1,500 is
the agreed upon arrangemort tc retire tY`.z 1004 $7,500
wage,~benefit debt to the City. This will be paid off over
five years with rc interest. The City forgave the remaining
V7,50C wage,'benefit debt. The $2,000 is for 1095 wage; benefit
tc the City. The IDC will no longer roceive ari annual
cc:.tribution of X6,800 from the City.
Harvey Kendall made a miation tc accept the P4ay IDC firiailcial
report. Tom Lindquist seconded the motion and vaith no
ccrrectioras ar additions, tre financial r•cpcrt was accepted
and filed.
4. CONSIDERATION OF PROSPECT UPDATES:
r`i'v~1S'itYic^rs accepted the iildUStrial prasr,ects and the BRE V~rittoTi
:.=epcrts. ."•4embers were given a brochure of Midwest Graphic,
Page 1
I-•^ t'~^ company whc purchased Pf^~f~'^' ^ building along
114 • 1 CL Ll V1 J
Fallen Aver~u~.
Members questioned trle break-doYvn of communications between
tiie City aril quality 'w'elding; RogerLtiorpOrat].Gri. YtdA.'vpCiici~.
responsed the company was not disappointed with the lan:A
pr icei iivweVer, they aSSlliTied file City was not ari IritereSted
seller because of trig time lapse to receive ti"1v Clty'S
deciSioil. Additionally, Cou.ncil'S C~3miS'ieiitS of no guarantee Gf
TIF for tha proposed structure which was sitniliar to tfte
Polycast building left a negative taste of Morticollo.
F~oropchak agreed communication within City Hall needs
improv~;ner~t .
BRE REPORTS:
STANDARD IP.ON AND FSI - Reports by Shelley Johnson and Kcr.
Main will be given in June.
DECf~P.ATIVE SEP.VICES - Bill Tapper reported, in April, he
toured Decorative Services and visited with Jerry Ar~drusko and
his sore. Jerry purchased the company in 2D88 and leases
appro~itnately 7,500 sq ft from Jay Morrell. The custom
drapery business provides labcr only. Their customer base
includes Carlsar, Ccmpar~ies, Kahler Hotels and Dayton's ~ivjl`,'v
Values . Sales -nark~ting is by wcrd of mouth. Tre company alas
growr, by 45 0. Trey employ 34, mostly women. The company
. which is bursting at tree seams, lack of space, are considering
other options. It's unfair, that individuals ~aho are hard,
corxfident workers appear to receive a bad response fro;n the
COtTimu.n].ty because of previously owned-business relations. The
cc,npany has received a line-of-credit from Norwest, St. ;loud
and an JLA loar, far M&E, local banks are not interested,
f~or.~pchak indicated her disappointment for the inability to
assist an existing irduatrial company. °RG and hers`.lf worked
to find a developer to construct and lease to Decorative
Services with ar, optior. to purcr,ase in five years. TIF is
necessary to provide a rate of return which will attract a
developer and provide a ret:tal rata affordable to the ter,ar,t .
The HRA was not interested ire providing TIF and encouraged talc
volTlpariy t0 lease another year. T~'17.5 project trl'aiy niet the
"but far" test of TIF.
Jay Morrell reported the company turned-down the contract to
supply draperies for the P.adisson-Moscow project. The ability
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IBC MINL'TE~
MAY 18. 1905
to pay 1S the bCttaitt-llne. The CGlttpany rU.nS arie~-si.lft, a
S2Cand-~hlft 3ttay be ^a Short-term f1x.
TIRE SERL'ICE EQUIPMENT - O'Neill reparted a Itteestirlg between
Bret 'r.eiss, Ray Schmidt, Gary Anderson, and himself r•esalved
the issues relating tc Ray's planned expar~sior.. A building
permit is scheduled to be issued Friday for tl^.e loading garage
expansicr~ tc the north side.
M«P TRANSPCP.TS, INC. - Jay repcrted satisfactical with his
five-year outside storage use; approval far Lot ~, Block 3,
CIP. He felt the City Ordinance adapted far autside st:.,rage
and interim use in I-1 and I-2 ~.ancs provides authorized-
carlt~: cl .
•
5. CCNSIBERATION TC BISCUSS COMPP,EHENSI~JE FLAN UPBATE MEETI~1u CF
MA~~ 1 ~ . _._.,...,.__
IBC Ir~a;nbers were provided with results of the gcal statements
fi•a,n the Comprehensive Plan Update of May 15. Chairp~r'sar~
Bcty asked Kerr Maus tc report as the IBC representative:. Jahn
McVay attended a partiar. of tre meeting arld Keri arrived later.
Kin reparted,, the majority of the7,~ econolttic devel....pmer~t
d1 ~e'uJS Tans r1Qd cor~cluded• F'iatiae Ver r he L+'lt the ~.''~:~J1L3 r1 Ya <7.:.?
f.~'uitful because; it provided diffcrer~t preee:ptiar~s from grcup-
iT12)ri~^.+erS other tharl file IBv. He G.sipri=.SSed It VvaS l1Ti~.lkc'iy u
fetal agreetne:nt with respects to a definitiar~ of "iii ~i~'c
quality, high investmLnt" butt 111E-'sSeS waLi.ld be abtai;i<?d.
Jeff O'Neill reparted the==. cbjective of the flay 15 Itt~e:ti.Lg wss
to establish g,~alS far the Compreher~slve Plan LTpdatc pr1e.Y' to
ar~d as a lead-in to the two proposed prcjects. O'Neill
dL:SCrlbcd the proposed outlet mall as a deslgratla:l
Center,/tCUrist attraCtlari, bulit lri u Village ~:•arsCept with
relatively pleasant arChlt2Ct do^S].gii, geraeY'atcS vaeek-eiid dally
vehicle traffic count of 4,OCO, canstructior~ of 25C,CCC sg ft
- 1CC stares in Phase I, e;ttployment of 2CC Ittatlagerial je:bs a.1d
part-time, intergrates a Chamber Informatics Center, and
markets to high-end brand name stares.
O'Neill expressed Monticellc's pcint of distance was gaud ar~d
Litilltie:3 are lrt place at the Monticello CO,i~merCe Ccriter
location. The ca;ttpany representatives vaere dismayed by
~'iii~t1T'ig lliterC~iarigeS being aver-bliiit P9atitiGella iS
ge~aY'ing-up .
The Marlticalla Cammurce Cej:lter site noeds a full interchange
tc 1Ti8et the develcper's Ideal s1t~. Tht. Mazltlce.llo Traffic
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IDC MINLITEC
MAC' 18, 1035
Study earmarked the mare immediate rued far a $400,000 an,'aff
ra;np at I-34 and Cty Rcad 118 and earmarked the reed of a $3 , 5
3nillian full ir~tc.rchange ir. the distance future.
F;orapchak reported the :IRA earmarked TIF paalir~g dollars far
the Fallen 0v~::rpass, Waste Water Treatment Plar.t, substandard
parCc^.iS far redevelopments and dlscussed t%ie Cangejted and
unsafe Highway 25 and 0akvaood Drive intex•sectiora. The HRA did
agr ems: arid. went an record Stating file best Arid hlgheSt i%S8 of
the Monticello Commerce Center property was far th~~
utili2atiar~ of industrial businesses and quality jobs.
Na funds are anticipated from MDCT, the county may assist with
wider,irg the Cty Rd 118 bridge, creatiar~ of a neJa TIF District
appears net tc be ar, option; however, a City Sala:s tax is ari
aptiar~ to explore for fir~ar~cing th interchange. Me.m~bers felt
a city-.vide sales tax would not fly.
may itlfcrmed ;nembers of the impact the regiaral office at MDCT
played ir. successfully obtaining the tanker inter•sectiari iri
Aiexaildex' .
Doty asked, "6ahat about the shortage :,f labor?" Members felt
file iiilpcaCt art tiae shortage of lobar would aCCUr cvc^n if tiles:
project were located 10-15 miles dawn the rand.
Tam Lindquist felt the $3.5 millian interchange expa~ditura was
a good exchange: far the projected $500,000 annual tax baste.
In addition, the dollars would be spend locally rath~:r than
outside tree area. Members encouraged aggressive action be
pursued witi^a MDCT and to explore ether sites far iridustxiial
Iand replacement.
Doty attempted to bring the discussion to a clrsc, as
sufficient tlme VJaS Sperid relatirig to ^a premature CamiT'ic^r Ci.al
development proposal. Koropchak felt t:ie IDC might bu
c,~rcerned with the thoughts of existing industrial bu:>izlessas
ir, CIP ar~d alar~g Chelsea Road rolating to the need to x•~•~.ane.
C'Neill requested a motion giving direction tea city :staff
relating to the oL1t1Ct mall.
Rory He:glund made a rnotiar~ for city staff to pursue the outlst
ma11 at the Monticello Commerce Canter situ and to explore
ethe r lands far industrial use. Prerrlyn Seefeldt seCOTldBd tiie
~rati ar~ and with rya furta~cr discussion, the ~r~atior. passed.
P+i 11 Tappex° ap~:osed .
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IDC MINUTE
• MA1' 18, 1335
6. OTHER BUSINESS:
Bill Tappcr• referred to the workshcp of the IDC and to its
cratity ~trLl~turc If the IDC 1S riot a gov:?inmental G~ntl t`y' thE:
City cf Mcnticellc, de~:s the IDC have a tax-exempt status ar~d
arc IDC members (directarsj independently liable ar are they
cavered under the City': Don Smith agreed tr.at was a good
quosticn. I} vaas suggested to rur~ the ~u2stion try City
Attorney Faul Weingarden. Don Smith added as the IDC ,«embers
are not appointed by the City Council, wl^.ere dog=s tY~s IDC
stand witr. regards to rESpect and support tram the Council?
::ith the. lapse Of tlme, the reInairiii7g iDC aL,7erida itcm:i `vYci'e.
continued until the 3une I5 meEtir~g.
ADJOURI~TP!lENT .
The IDC meeting adjourned at 8:40 a.m.
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Ollie Kerapchak, Ex cutive Director
• Dag-'