IDC Minutes 11-04-2003MINUTES
~~ MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, November 4, 2003 - 7:00 a. m.
Academy Room - 505 Walnut Street
MEMBERS PRESENT: Chair Mary Barger, Bill Tapper, Dick Van Allen, Don Roberts, Mike
Benedetto, Barb Schwientek, Dan Olson, Kelli Huxford, Tom Feaski,
and Lynne Dahl.
MEMBERS ABSENT: Vice Chair Tom Lindquist and Tom Ollig.
COUNCIL LIAISON ABSENT: Mayor Bruce Thielen.
STAFF PRESENT: Rick Wolfsteller and 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 Barger called the meeting to order at 7:00 a.m.
Vote to approve the October 7, 2003 [DC minutes.
TOM FEASKI MADE A MOTION TO APPROVE THE OCTOBER 7, 2003 IDC MINUTES.
SECONDED BY DAN OLSON AND WITH NO CORRECTIONS OR ADDITIONS, THE
MINUTES WERE APPROVED AS WRITTEN
3. Vote to approve a recommendation for City Council consideration to authorize preparation of a
purchase agreement for acquisition of said property for industrial development.
Koropchak made a presentation using over-heads of the process and information gathered by the
Subcommittee of HRA Dan Frie, [DC members Mary Barger and Dick Van Allen, Administrator
Wolfsteller and herself. Through the researched information, the group was able to narrow a site
for recommendation to acquire for industrial development consistent with the lDC/HRA goal to
provide a continuous stream of available industrial land with infrastructure potential. With the
recommended site being the Otter Creek Crossing 114+- acres at a cost of approXimately
$70,000 per acre for land acquisition, street and utility infrastructure improvements, and trunk
fees; Ehlers & Associates ran a cost analysis using TIF revenues over 20 years with an annual
50,000 sq ft building and five acre build-out. Expenditures included 5% interest rate for internal
loan (land), 4.5% interest rate for bonds (infrastructure), and 3% inflation rate for trunk fees.
Given this analysis, the City would need to sell or market the land for at least $33,000 per acre or
.7575 per square foot. Next, the IDC reviewed a comparison of the current TIF finance method
and the proposed TIF finance method wherein the developer's investment of up-front monies is
less, the city retains all of its trunk fees, and is wiser use of marketing funds. Lastly, the IDC
reviewed the recommendation and rational of the subcommittee. Wolfsteller suggested the use
of city reserves for cash buy-out as this a better investment (interest rate) than what he could
currently get on any other investment The HRA/City have a combined $931,000 in reserve
funds.
MIKE BENEDETTO MADE A MOTION RECOMMENDING THE CITY COUNCIL
CONSIDER AND APPROVE AUTHORIZING THE PREPARATION OF A PURCHASE
AGREEMENT FOR ACQUISITION OF APPROXIMATELY 1 14-120 ACRES OF OTTER
CREEK CROSSING FOR INDUSTRIAL DEVELOPMENT SUBJECT TO TERMS AND
CONDITIONS OF THE CITY COUNCIL. MOTION SECONDED BY TOM FEASKI. Bill
Tapper asked if the motion included the suggested terms and conditions. BENEDETTO AND
FEASKI AMENDED THEIR MOTION TO INCLUDE THE SUGGESTED TERMS AND
CONDITIONS: COUNTER-OFFER OF 10% DISCOUNT FOR CASH (.55 CENTS PER
SQUARE FOOT), COUNTER-OFFER EXPIRES NOVEMBER 30, 2003, CLOSING DATE OF
NOVEMBER 2004, MINING TERMINATES NO LATER THAN MAY I, 2005, SUBJECT TO
SOIL TESTS, TOPOGRAPH[ES, DEFINE BOUNDARIES, AND SUCH ITEMS DESCRIBED
BY CITY COUNC[L AND THE CITY ATTORNEY. COUNTER-OFFER BASED ON HIGH
COST TO DEVELOP INFRASTRUCTURE. WITH NO FURTHER DISCUSSION, THE
MOTION AS AMENDED CARRIED ON A 9-0 VOTE. LINDQUIST, OLLIG, AND DAHL
ABSENT. The IDC members were encouraged to attend the City Council Workshop on
Monday, November 10, 2003, at 6:00 p.m. Tapper noted a great job done by the subcommittee.
4. dates by Mayor Thielen:
A. Progress of annexation agreement and future township/city council meetings.
Wolfsteller informed the IDC that the Council approved a resolution for annexation of 1 1,000
acres of the Monticello Township for the purpose of planning. This would leave the township
will approximately 20,000 acres. Currently, the city is about 5,000 acres. A meeting has been
set for Monday, November 10, 2003, at 5:00 p.m. in the Council chambers. The Mayor of St.
Michael offered to meet with the council and township board to share their expertise and
experience of the Frankfort Township/St. Michael merger of 1997.
B. Meeting of city officials to set 2003 Council's Community Vision & Governing Policies.
Nothing to report.
C. Update and progress on the proposed i-94 and County Rd 18 interchange and I-94
realignment.
Wolfsteller reported a meeting is set for Friday, November 7, with the developers who are
looking for numbers. Numbers are not final nor are the funding sources. Wolfsteller expressed,
yes, it will happen. Eight million for the off/on ramps, County Road 18 bridge may be widened
to 4 lanes with signals. Land costs are unknown. MNDOT wants to realign and needs new
ramps. Earliest start 2005.
Reports:
A. Economic Development Report -With no questions of the economic development
report, the IDC members accepted the report as written.
Discussion on and to continue development of a list of potential tasks to accomplish the goal of
the IDC: To provide a continuous stream of available industrial land with infrastructure
potential.
A. Review the draft copy of the November 3, 2003 Planning Commission Agenda for
industrial related items. Discuss and vote on an IDC position or action if necessary.
Koropchak informed IDC members that since the draft copy of the Planning Commission agenda
an item from Applicant Otter Creek LLC was added: Consideration of a request for a Concept
Planned Unit Development approval for residential and industrial uses. Planning staff is
recommending the concept plan be approved only with the industrial fronting the full length of
the power transmission lines, a depth for industrial lots of no less than 400 feet, and adequate
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rear yard areas to satisfy the City's bufferyard requirements. IDC members agreed this would
add additional industrial land to market along proposed Center Road. Koropchak indicated she
would attend the Planning Commission meeting.
Other Business.
Chamber U dp ates -Chamber Chair Feaski reported the November 20th Chamber meeting will
host or honor past Chamber Chairs, Home for the Holidays is December 5, the Travel Host
Magazine features Monticello as draw for swans, Chamber looking for a joint partnership with
the City/EDA to fund a billboard along I-94, and Saturday, January 23, has been set for the
Annual Chamber Banquet featuring Casino Night as entertainment.
Adjournment.
BARB SCHWIENTEK MADE A MOTION TO ADJOURN THE IDC MEETING.
SECONDED BY DON ROBERTS AND WITH NO FURTHER BUSINESS, THE [DC
MEETING ADJOURNED AT 8:30 A.M.
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Ollie Koropchak, Recorder
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