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IDC Minutes 05-06-2003MINUTES • MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Tuesday, May 6, 2003 - 7:00 a.m. Academy Room - 505 Walnut Street MEMBERS PRESENT: Chair Mary Barger, Vice Chair Tom Lindquist, Dick Van Allen, Don Roberts, Mike Benedetto, Barb Schwientek, Dan Olson, Tom Feaski, and Lynne Dahl. MEMBERS ABSENT: Bill Tapper, Tom Ollig, 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 7:00 a.m. 2. Vote to approve the April 1, 2003 IDC minutes. Dick Van Allen made a motion to approve the April 1, 2003 IDC minutes. Seconded by Lynne Dahl 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 there are a number of annexation requests coming through. A meeting between the city and township is planned for June. The township is now doing a plan. The scheduled meeting would identify land areas to come into the city. How to use the land. How to zone the land. O'Neill noted ifthe township is not agreeable, the Council's position is to be pretty aggressive with its power. B. Status of the Council recommendation to establish a task force for implementation of the Comp Plan. O'Neill reported city staff has not met with the Xcel people for some time. Although security is an issue, it was the feeling Xcel would be receptive to an interchange in the future. How many acres does Osowski's own? Recalling the land use map, O'Neill thought the industrial area was between 400-600 acres and guessed perhaps 400 acres might be owned by Osowski. Barger asked: If the IDC was interested in pursuing an option on the Osowski property, could we proceed? Lindquist noted the we keep talking about purchase of land why not get an option. if the City/HRA has $765,000 in a fund for industrial development, why not -neet with the Osowski's relative to their plans and interest. Someone noted the Osowski's were not looking for changes for another 10 to 15 years. Feaski said that fits well, we wouldn't be ready for development or development of an interchange for 10 to 15 years. It was agreed that Koropchak gather Barger, Van Allen, an HRA member, Jeff, and herself to review the site, then invite Osowski to lunch to see about availability of land rather than spending more time on how to develop. C. Report on theioint meeting of local elected officials held April 26, 2003. Benedetto reported the joint meeting was a good start. We did not get to the round table IDC Minutes - 5/6/03 • discussions which will continue in June. Benedetto was impressed that the township was present, three members. The session was mainly networking and can only improve a situation. D. Other. Proposed 1-94 & Cty Rd 18 Interchange - A proposed funding plan includes assessments against the benefitting property for development and other non-developed property owners in addition to state and county funds. The commercial developer would like to see interchange construction begin 2004; however, the State needs to settle on design of ramps and I-94 stretch under-pass. Construction could be phased over time. Home Depot -waiting for a commitment from Wal-mart. Have heard Wal-mart has over- extended the market or over-built. Home Depot could lock up site and build today or later. The request for signage was granted so signage not an issue reported O'Neill. 4. Reports: A. Kaltec BRE Visit -Barger stated her notes were similar to Koropchaks report and felt Jason's computer business was carrying the company. Van Allen asked if Ollig was contacted relative to Kaltec's communication concerns. Barger stated we offered to contact Ollig but Kaltec backed off. B. Economic Development Report -Koropchak reiterated her written report adding the Midwest Graphic building sold for $1.9 million. An IDC Open House/Welcome will be held the first part of June. Koropchak asked about time? Not Friday at 3:00 p.m. Koropchak noted she stopped by Aroplax to set up a BRE Visit. Leads: The boat sales and manufacturer can purchase freeway exposure land for $47,000 per acre in St. Cloud with utilities. Foam Fabricator expanding at existing facility in Maple Lake. The Remmele building is on the market for $2.1 million, 49,000 sq ft. They had a showing to a manufacturer with needs for a paint booth. Shrink wrap company. 5. Discussion on and to continue development of a list of notential 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 May 6, 2003 Planning Commission Agenda for industrial related items. Discuss and vote on an IDC position or action if necessary O'Neill reviewed the Planning Commission agenda. Some IDC members asked numerous questions: What is the interim use permit in an I-2 Use (Heavy Industrial) for the school? It's a two-year conditional use permit for 44 kids in the Alternative Learning Program. This location on Oakwood Drive appears to work well for their purpose and has not caused problems. Why higher density within City such as Holthaus PUD? Redevelopment more expensive and this parcel could accommodate 4-5 single family homes with access directly on West Broadway. The PUD allows for higher density of eight two-story units with street access in the rear (safer), 1,400 sq ft per unit, owner-occupied, selling price between $170,000-$180,000. Why allow town homes on the Ralph Herme property (Shadow Creek Corporation), one of the most beautiful, wooded areas? Town homes are proposed on the northerly half with larger lots, single family homes on the southerly half. It is likely the Planning Commission will deny this. This is in the higher standard R]A and R2A area. O'Neill reported the Planning Commission will be asked to call for a public hearing to consider amending the ratio of town homes to single family homes. Currently, three units per acre is allowed. A developer can create larger single-family • lots thereby allowing for a higher density oftown-homes. Who is the typical buyer of a town home? Retired and single-family. How does that help the school and the needed work force for industrial development? Otter Creek Crossing -The public hearing and preliminary plat approval for Otter Creek 2 IDC Minutes - 5/6/03 Crossing is recommended to be tabled as Chadwick does not have access to his property. Chadwick needs to work with Denny Hacker. Gold Nugget Development -Relative to the public hearing and development stage PUD and preliminary plat approval for Gold Nugget, Koropchak asked if this development stage PUD showed a reduction from the 12.8 acres of commercial shown on the revised 3/12/03 plan. O'Neill noted the development stage PUD map is the same as the preliminary plat. O'Neill would check on acreage of commercial and industrial. The narrative noted 10 acres commercial and 60 acres industrial, and generally speaking about 15% of land is needed for ponding. Additionally, Koropchak asked if it was necessary to call for a public hearing to amend the land use plan from I-1 to B2 for the 10-acre commercial parcel? This was noted in the March Planning Commission narrative. Park Dedication Fees for Industrial - O'Neill submitted the results of a survey taken of surrounding communities relative to park dedication fees. Currently, in Monticello, residential developers have an option of dedicating 10% land or paying a fee of $868 per residential lot. No fee exists for commercial and industrial. The Parks Department is proposing an increase in the residential fee to $1,400 per lot. Developers claim park fees are an impediment to development or the development creates no demand for parks. With the on-set of commercial development, O'Neill noted it was a good time to add commercial/industrial park fees. If a c/i park fee is on the books, this still leaves flexibility for the Council to waive or forgive the fee if there is a gap in the financing. The proposed fee for commercial is $3,000 per acre and industrial $2,000 per acre. Barger, Van Allen, and Roberts asked with the additional fees, is Monticello's over-all cost for industrial development competitive with neighbors and other states? Koropchak reported that the ?003 water, sanitary sewer, and stor-~ sewer trunk fees total $9,630 per acre. This does not include hook-up fees. The price of industrial land is $65,000 per acre. Feaski requested an estimate of costs to develop in Monticello: land, trunk fees, hook-up fees, etc. for industries. B. Review [DC goals/projects as prepared by Chair Bar eg r supporting the City Council's Community Vision & Governing Policies Vote if applicable Benedetto made a recommendation to defer review of'the IDC goals/projects until the June IDC meeting due to a lack of quorum (number of members renaaining~. Lindquist seconded the recommendation. No vote was taken. Members are to review prior to June meeting. 6. Other Business. Chamber Updates -Chamber Chair Feaski reported the Chamber is hosting a Breakfast with the Mayor and Council tomorrow morning at Best Western. Golf Outing of May 15 has 106 golfers. Will participate in Walk & Roll on May 31 and again this month had 31,000 hits on Chamber web site. Politically, the Chamber has supported the Xcel Die Cask Storage Bill and TIF Five- Year Rule Extension Bill. The Chamber notes the lack of parking at Crostini's, Town Center, and Locust Center. The Chamber takes no position on condemnation as this is not within the Chamber's jurisdiction. Die-cask Storage Legislation Update - Huxford absent, no report. 7. Adjournment. Roberts made a motion to adjourn the IDC meeting. Lindquist seconded the motion and with a lack of quorum, the meeting adjourned at 8:45 a. m. ©Q9.~.k~ K Gl o-~ ~ a.9z_ Ollie Koropchak, Recorder -,