IDC Minutes 04-18-2002
MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, April 18, 2002 - 7:00 a.m.
505 Walnut Street -Academy Room
MEMBERS PRESENT: Chair Dick Van Allen, Vice Chair Mary Barger, Tom Lindquist,
Bill Tapper, Susie Wojchouski, and Barb Schwientek.
MEMBERS ABSENT: Kevin Doty, Tom Ollig, Don Roberts, Mike Benedetto, and Dan
Olson.
COUNCIL PRESENT: Mayor Roger Belsaas.
STAFF PRESENT: Ollie Koropchak.
IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to
create jobs in the City of Monticello, Minnesota.
Call to Order. (Please read the minutes and information prior to the meeting.)
Chair Van Allen called the IDC meeting to order at 7:00 a.m.
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2. Vote to approve the March 21, ?002 1DC minutes.
Tabled with May meeting.
Updates by O'Neill. In the absence of O'Neill, Mayor Belsaas gave the update.
a) Public Hearing Date for the Comprehensive Plan Amendment, May 7, 7:00 p.m.,
Planning Commission.
b) Gold Nu_parcel. Belsaas reported the Gold Nugget law suit is "waiving in the air."
Additionally, he informed members that prior to March 1, the Municipal Board accepted
the Remmele and Groveland parcels for annexation by ordinance. With the MOAA's
existence in question and the Governor's ruling on annexation, the State Planning Board
will not honor any filed annexation petitions for two to eight months. Lastly, Belsaas
informed members that the Council on March 11 authorized an appraisal of the Gold
Nugget property. According to Koropchak, she did not believe administration had
ordered the appraisal.
c) Otto Creek Crossing annexation -The owners had requested annexation of 60 acres.
An annexation petition has not been filed at the State nor the public hearing held at
Council level. It appears at $.95 per square foot without improvements, the owners are
not interested in selling or developing.
4. Feedback from the Planning Commission Open House and IDC presentation. Van Allen
reported that the format used at the Open House was disappointing. After a short
presentation by Planner Grittman and O"Neill, participants were requested to ask
questions and give comments to individual staff members or the consultant. Van Allen
reported to the IDC members on his comments made at the Open House which included
IDC Minutes - 4/]8/02
the need for administration and the IDC to measure or track goals. He noted the number
of jobs and wages created and lost within a certain span of years which resulted in the
IDC's focus to strength the BRE visits. Additionally, he noted the questions developed
by the IDC; reported the IDC supports a balance development of residential, commercial,
and industrial; that IDC supports an industrial land use and development at either a
portion of the Gold Nugget parcel or the City/Remmele parcel for the short term; and
supports the westerly Orchard Road parcel and interchange for the long term (10-20 years
out). Lastly, Van Allen presented a graph outlining the city's tax levy, tax capacity, and
budget between l 997 to 2002 and noted the increase in the taY levy and budget and the
decrease in tax capacity. Members also noted, given the 2 to 8 month wait to honor
annexation petitions, the number of housing permits may decrease this and next year.
Koropchak added that the Planning Commissioners and Council members had left the
Open House prior to Van Allen's presentation which was unfortunate.
5. Reports:
a) BRE Visit - Polycast Specialities, April 26, 9:30 a.m.
b) Economic Development Report
I) Koropchak reported that the Prospect Team of Van Allen, Brad Barger, Ron Hoglund,
Tom Lindquist, Clint Herbst, and herself visited UMC on April 8. On April 2, Don
Tomam~ and .Koropchak revisited site options in Monticello and the sites were ranked
accordingly: l a) Monticello Commerce Center, 2a) City/Remmele, and 3a) Monticello
Market Place. In conclusion, Tomann liked the Commerce site to the west of Twin City
Die Castings because of its proximity to the school and proposed image along Chelsea
Road. In order to accommodate a squarer dimensionallot, he increased the acreage
requirements from 6 acres to 10 acres. He requested a proposal from the City of
Monticello by April 15. Koropchak presented a copy of the proposal to the IDC members
noting the project costs and the additional costs to a business to acquire 3-4 acres in order
to obtain a desired dimensional lot It is estimated that TIF can reimburse the land costs
for six acres and the Council agreed to waive the trunk fees for 6 acres. On April 4,
Pfeffer presented a site concept to staff outlining 7 acres to the immediate west of TCDC
for Production Stamping and the next abutting 10 acres to the west for UMC. The point
being, UMC once again has a long narrow lot. It has been Pfeffer preference to sell the
remaining 40-50 acres on the south side to one user and avoid further infrastructtrre
improvements.
2) Production Stamping -Koropchak again presented IDC members a copy of the
proposal mailed Les Wunn. This excellent company also plans to construct a 60,000 sq
ft manufacturing/office building. The Prospect Team visited this company about a year
ago. Both companies looked at the H-Window and Right Choice buildings and have
selected general contractors. Neither compa~ly has committed to Monticello at this time.
3) Visited a company in Plymouth at the request of Department of Trade and Economic
Development. Company submitted offer on H-Window building, according to realtor,
the offer was not accepted. Company renting 3,000 sq ft from Fay-Mar. Looking for
financing to employ workers to manufacturer a new product: forklift attachment.
Company encouraged to prepare financials and business plan.
4) Plymouth company looking to construct 14,000 to 18,000 sq ft facility. Worked Tom
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IUC Minutes - 4/18/02
Feaski. Elected to rent in Buffalo for couple years. Waiting to see if asking land prices
and the market equalize.
2002 Continental Breakfast and Golf Outing -Thursday, May 16, at Silver Springs. IDC
members were invited to the breakfast. Reservation are required. 65 invitations were
mailed to contractors, site locators, and developers for gratis breakfast and golf. The golf
outing is a Chamber fundraiser.
c) Mayor - Belsaas noted the Cotmcil can't continue to relax the trunk fees. The State is
eyeing cities with surphls reserves.
d) Follow-up with Dr. Nemec -Tapper reported on his conversation with Dr. Nemec. Dr.
Nemec told Tapper he had several talks with Business Administration. Because of the
Privacy Acts and Laws (non-disclosure clauses), there are many reasons why the Clinic
can't provide the service of drug testing for employees of local businesses. Secondly, the
Clinic was not interested in servicing commercial/industrial because they do not have the
capacity. Schwientek added as the Privacy Acts keep getting worse and programs such as
JMC for the homeless go away, it leaves a greater % of the population without coverage
resulting in no way for the Clinics to recover their losses.
e) Industrial Banquet Date - Wojchouski informed IDC members that the Industrial
Banquet has a tentative date of June 1 I at the Monte Club with Norm Coleman as the
guest speaker. Regular Chamber meeting. today, 11:50 a.m., Hero's in Becker, Steve
Hammer. NRG, speaker.
6. Discuss chan~in~~ the IDC focus to economic development (both industrial and
commercial.)
The discussion as to whether the IDC should change its focus to include commercial as
well as industrial stemmed from the IDC Workshop of February 21, 2002. Tapper
recalled in the summary of commercial and industrial zoning comparisons provided at the
workshop, the bottom-line was commercial development is allowed in industrial zoning
through the Planned Unit Development (PUD) process. Although the IDC supports the
over-all development of residential, commercial, and industrial, was this the most
effective and efficient land use and zoning? Tapper continued stating Monticello has a
unique opportunity located along I-94 and Highway 25 and between St. Cloud and
Minneapolis for a major shopping center. Those decisions must be made now. In 1955,
at Hwy 55 and County 18, there was nothing west to Wayzata. Monticello needs to plan
for the future. Susie felt the comp plan is short-sighted with land use for
retail/commercial. Big Lake and St. Michael have no down-towns. St Michael had
McComb study and Big Lake retained Minnesota Design Team to assist with planning.
What is the amount of acreage in Maple Grove? Members felt data needs to be collected
such as population projections, land use consumption, income projections, etc. to assist
with comp plan decisions. The IDC members concluded it was premature to make any
recommendations as to the future focus of the IDC lmtil discussions are held with those
• members absent.
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1llC Minutes - 4/18/02
then Business.
Bill Tapper made a motion to cancel the July ?002 IDC meeting. Susie Wojchouski
seconded the motion and with no further discussion, the motion passed unanimously.
Adjournment.
The IDC meeting adjourned at 8:30 a.m.
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Ollie Koropchak, Recorder
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