IDC Minutes 06-03-2003MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, June 3, 2003 - 7:00 a.m.
Academy Room - 505 Walnut Street
MEMBERS PRESENT: Chair Mary Barger, Vice Chair Tom Lindquist, Bill Tapper, Dick
Van Allen, Barb Schwientek, Dan Olson, Tom Feaski, and Lynne
Dahl.
MEMBERS ABSENT: Tom Ollig, Don Roberts, Mike Benedetto, and Kelli Huxford.
COUNCIL LIAISON ABSENT: Mayor Bruce Thielen.
STAFF PRESENT: Jeff O'Neill 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 IDC meeting to order at 7:05 a.m.
2. Vote to a~rove the May 6, 2003 IDC minutes.
Tom Lindquist made a motion to approve the May 6, 2003 IDC minutes. Lynne Dahl
seconded the motion and with no corrections or additions, the minutes were approved as
written.
Updates by Mayor Thielen
A. Progress on annexation and development of new agreement.
O'Neill reported a meeting between the township and City Council will be held by the
first Council meeting in July (July 14). Mayor Thielen preparing the agenda.
B. Scheduled date of next ioint meeting of local elected officials and meeting of cit
officials to set 2003 Council's Community Vision & Governing Policies.
The followup meeting of the local elected officials is scheduled for Wednesday, June 18,
7:00 p.m. in the Mississippi Room. Round table discussions to identify opportunities for
collaboration is the agenda.
The Council will meet on Monday, July 14, 5:00 p.m. to review goals submitted by
commissions and set the 2003 Community Vision & Governing Policies.
4. Reports:
A. Mini task force meetin~on Osowski's land -Van Allen/Koropchak.
Van Allen reported that Jeff, HRA Commissioner Dan Frie, Koropchak, and himself met
May 20. At the May meeting, O'Neill summarized work completed by the city engineer
and staff stating the area can be served by extending the sanitary sewer and water trunk
system. Yet to be determined is the cost and timing of the improvements. The proposed
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IDC Minutes - 6/3/03
Orchard Road interchange is identified on MNDOT's study. Funding the interchange
would be similar to that proposed for I-94 and County 18, 90% local. Xcel's concerns
are security and proposed chemical uses by industries. O'Neill suggested perhaps an IDC
township resident attend Township planning sessions, now ongoing, to preserve the
Osowski area for industrial. After driving the area, Van Allen noted the Osowski
property has a high water table which is a detriment (adds cost) for industrial
construction development. Feaski did not agree as industrial buildings are generally on
concrete slabs. Tapper said he would not build in an area with a high water table.
Koropchak added the area north of Aetna Street appeared to have less wetlands than the
area to the south of Aetna. The task force then drove by the Paumen property noting the
contrast in the soils and wetlands. Koropchak has obtained copies of soil and wetland
maps from the Wright County Soils & Conservation Office. After viewing the high water
table on the Osowski property, a meeting with the Osowski was not suggested until more
research and the consideration of other options. O'Neill said the Paumen property was
purchased about four years ago at aboLrt $15,000 to $20,000 per acre. Construction of the
improvements through the Chadwick property will not be completed for two to four
years. Right now Chadwick is held hostage by Hecker. Hecker purchased Rask property
and Chadwick has no access for continuation of Chelsea Road to the west. Freeway land
along West Chelsea recently sold for $8 per square foot. Feaski noted he's working with
a client who can purchase 1.5 acres of land in Ramsey/Andover for $60,000 with no
assessment. Only WAC/SAC. fees. The IDC needs to consider cost of land/infrastructure
and short and long term needs. Land options: Osowski, Paumen, Chadwick, and Gold
Nugget. Partnerships, land options, perhaps an exchange of trunk fees for industrial land
with Gold Nugget. The mini task force to consider all four land options.
B. Economic Development Report.
Koropchak reiterated the written report adding she had an appointment with Les Wurm at
1:00 p.m. to set a date for the open house and to see his interest to replace the TCDC ad
in the Discover Monticello journal. UMC have movers scheduled for August 23.
Members discussed the outcome of the non-enacted Special TIF Bill.
5. 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 June 4 .2003 Planning Commission Agenda for
industrial related items. Discuss and vote on an IDC position or action if
necessary.
1. Continued - preliminaryplat approval Otter Creek Crossing commercial
subdivision. Will be tabled as Chadwick does not own or have access to
property.
2. JME -interim use/conditional use permit allowing outside storage. Jay
Morrell requested this be tabled.
3. Gold Nugget Development -Follow-up on land use. The May 28 revised
plat/PUD from Gold Nugget shows 51.18 acres of industrial, 9.80 acres of
commercial, and 9.02 acres of right-a-way.
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IDC Minutes - 6/3/03
4. Commercial/industrial park fee -Follow-up -development cost estimates
Koropchak reviewed the permit and trunk fees for the City of Monticello
as prepared by Building Official Patch. Utilizing the UMC model, permit
fees were $69,815 and trunk fees $92,600. Land cost for the 10 acres was
$650,000. Fees were based on 10 acres and a 65,000 sq ft facility.
Koropchak noted the TIF reimbursement of $365,000 for land write-down
and the City forgave $83,400 in trunk fees. The IDC had requested total
costs to develop for the purpose of remaining competitive. O'Neill said
park fees should be determined by the demand for parks not by
competitiveness. Development drives the demand for parks not
population. Park fees are for purchase of land and development of new
parks. Cost to maintain the parks is from the General Fund. He
continued stating his research to acquire the 26 acres to the south of 85
Street for ball parks. Asking price $ ~ 5,000 per acre. The existing
residential park fees are not consisi~with today's land prices. O'Neill
requested a motion from the IDC in support of park fees for commercial.
Members felt bringing in commercial/industrial development is good for
the community and saw the fee as an opportunity to tax. Koropchak noted
the Council approved increasing the residential park fees from $868 per
unit to $1,200 per unit Jan 2004 and $1,500 per unit Jan 2005 and
thereafter by an inflation factor similar to other fee increases (4%). C/I
fee later after further study.
B. Continued -Review IDC uo,~als/projects as prepared by Chair Barg
supporting the City Council's Community Vision & Governing Policies
Vote if applicable.
IDC members made comments to the draft copy of the IDC goals/projects:
Make definite statements as a means of measurement, suggested
establishment of a task force for implementation of the comp plan
consisting of people-at-large and city staff, and recommends the purchase
and/or designation of one lame area for industrial development versus
several small areas. The IDC discussed suggesting once a plan is adopted,
stick to the plan. Tapper questioned if implementation of the comp plan is
plan driven or economic driven. Koropchak noted comments at the
Wright Partnership session encouraged cities to update comp
plans/ordinances and to use the adopted plan ordinances as apro-active
tool rather than re-acting to developers. Conclusion, Barger would make
the appropriate changes and submit to IDC members for comments prior
to the Council session scheduled for July 14.
6. Other Business.
Chamber Updates -Chamber Chair Feaski reported that Susie attended a MN
Tourism Convention in Moorhead, the Chamber participated in Walk & Roll
which attracted about 2,000 people, are scheduled to give out a $750 scholarship
at the high school commencement, will participate in Riverfest, and held a
breakfast on Legislative wrap-up May 29.
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IDC Minutes - 6/3/03
Die-cask Storage Legislation - Huxford absent.
No IDC meeting in July.
7. Adjournment.
Tom Feaski made a motion to adjourn, Olson seconded. Motion died for a lack of
quorum. The IDC meeting adjourned at 9:10 a.m.
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D ~ ~, a
Recorder
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