IDC Minutes 01-04-2005MINUTES -ANNUAL MEETING
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, January 4, 2005 - 7:00 a.m.
Community Center, 515 Walnut Street, Suite 1, Monticello, MN
MEMBERS PRESENT: Chair Tom Lindquist, Vice Chair Dan Olson, Mary Barger, Bill
Tapper, Dick Van Allen, Don Roberts, Mike Benedetto, Tom Feaski,
and Paul Kleinwachter.
MEMBERS ABSENT: Tom Ollig, Barb Schwientek, Kelli Huxford, Lynne Dahl, and Don
Tomann.
STAFF PRESENT: Ollie Koropchak.
GUESTS: Clint Herbst, Wayne Mayer, and Council member Glenn Posusta.
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 Lindquist called the IDC meeting to order at 7:02 a.m. declaring a quorum. Members
introduced themselves and welcomed the guests.
2. Vote to approve the December 7 2004 and December 13 2004 IDC minutes.
Mary Barger made a motion to approve the December 7, 2004 and December 13, 2004
IDC minutes. Seconded by Bill Tapper and with no corrections or additions, the minutes
were approved as written.
Follow-up and discussion of the Cit~Council action to authorize a purchase agreement for
accFuisition of industrial land.
A. Minutes of the December 7 Planning Commission and December 13 City Council meetings
relative to approval of I-1 A zoning and proposed covenants for 120 acres of Otter Creek
Crossing. The IDC members received a copy of the minutes of the City Council meeting of
December 13, 2004, approving a I-lA zoning for 120 acres of Otter Creek Crossing
(Business Campus) with the possibility of re-zoning a portion to I-2 for relocation of the AVR.
The Council also approved directing the City Attorney to prepare restrictive covenants for
recording of the 120 acres of Otter Creek Crossing relating to: A) prohibition and definition of
outdoor storage, with allowances for vehicle parking, trash handling and trucking activities per
IDC recommendations; B) requirement for irrigation of landscaping areas between the building
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line and the street per IDC recommendation; C) Prohibition of metal exterior building materials
with exceptions for architectural treatments on roofs, doors, windows, or similar elements.
B. Koropchak reported the plat was recorded, closing on 120-acres of Otter Creek Crossing,
and acquisition of 35-acres took place December 22, 2004.
C. Update on December 9 Marketins~ meeting -Dan Olson reported the Marketing
Committee of Lynne Dahl, Darrin Lahr, Brad Barger, Koropchak and himself met on
December 9 and defined a marketing strategy supported by a $36,000 budget. They agreed to
request $15,000 from Xcel Energy of which $7,500 has been received and the remaining
balance forthcoming in 2005. The next meeting will start the design of marketing materials
which is depended upon the outcome of the AVR relocation.
D. IDC discussion on the benefits of I-lA zone and proposed covenants and its relationship to
the Preferred Measures. Based on the AVR project including jobs and wage levels and
desired 12 acres as noted by the AVR Attorney, Koropchak reported on the economic impact
of the AVR if located in Otter Creek Business Campus using the preferred measures.
Estimated annual loss of wages, $1,946,880 and estimated annual loss of taxes, $96,000. Cost
of land, construction of infrastructure, and trunk fees for 12 acres, $1,259,820. Relocation of
the AVR will also impact the types of businesses the City can attract to the park; thereby,
reducing the tax base and the related trucking to a Readi-Mix plant will affect the neighboring
residential and commercial areas. This noted in a memo from Ed Sorgatz, contractor of UMC
and TCDC, based on discussions with Shawn Weinand.
E. Summary discussions and follow-up. Discussion among the IDC members and guests
centered around the potential congestion within the area of the proposed I-94 and County Rd
18 interchange, optional interchange designs and locations, what is the value of the existing
AVR, and if other site options have been explored for the AVR It appears the project is being
driven by developers who have not committed or delivered and the approach by the City was
to converse with the AVR at the last hour. IDC members noted the City has worked long and
hard to acquire land for industrial development and the Council needs to slow down and
evaluate the trade offs. What appears cheaper today may not be the best for tomorrow. The
success of the industrial business park, is to do it right. All agreed other site options for AVR
should be explored.
4. CitX Update:
The Heritage Development was briefly mentioned as to when the proposed interchange at
Orchard Road would be developed and the need to replace the 160 acres of land earmarked
for industrial use per the Land Use Map. The IDC was encouraged by the 800-acre planned
residential/golf course development and proposed business park by United Properties located
to the west. It was noted that the YMCA property is of value for upper-end housing.
5. Reports:
A. Economic Development Report.
In addition to the written report, Koropchak noted she was trying to set up a time to visit the
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rubber products and rubber coated roller manufacturing facility. Secondly, the contractor
proposed to construct at the corner of Chelsea Road and Fallon Avenue is Heart of the Lakes,
the initial building will be 13, 785 sq ft with two planned additions of 5,612 sq ft each. Brad
Barger gave a lead fora 10,000-20,000 sq ft job shop. After a telephone conversation, a
customer worksheet has been mailed. The local business looking at the option to relocate to
the new business campus has decided to add-on to his existing building. Mary Barger reported
their expansion is near completion and Don Roberts reported Sunny Fresh has moved into their
new office space. The IDC may meet at Sunny Fresh in March or April. IDC members
requested Koropchak note where the industrial Ieads are obtained.
6. Review the draft copy of the January 4 2005 Planning Commission Agenda for industrial
related items Discuss and vote on an IDC position or action if necessary.
No industrial items appeared on the January 2005 Planning Commission Agenda; therefore, no
action required.
Koropchak noted the follow-up by Planning Commission in December as to the request by the
City for an ordinance amendment on open and outdoor storage. The commissioners
recommended the city council form a committee to establish a recommendation for an
ordinance amendment on open and outdoor storage, to be heard at the February meeting of the
Planning Commission. The committee should consist of Monticello business owners and
volunteers as identified, Planning Commissioner Spartz, two staff representatives, a
recommended member of the IDC and HRA, and representative city council members as
determined by the city council. Mary Barger had previously volunteered to be the IDC
representative.
7. Annual Meeting:
A. Acceptance of IDC membership three-year term -Lindquist Ollig;, Roberts, and Dahl.
Koropchak reported Dahl and Roberts had previously indicated their willingness to serve
another 3-year term. Lindquist also agreed to serve. A month ago, Ollig contacted
Koropchak about resigning from the Marketing Committee. Koropchak recalled about a year
or two ago, Ollig had written a letter of resignation resigning from the IDC. At that time, the
IDC elected to retain his membership and encouraged him to attend when convenient. The
IDC asked Koropchak to contact Ollig relative to his current plans or intentions.
B. Request for Standing Committee Members: President or Chair of Chamber and Mayor
of Monticello.
Clint Herbst agreed to be the Council liaison and Wayne Mayer asked if he could also receive
the agenda. Tom Feaski noted he did not think Susan Struckness, Chamber Chair for 2005,
was interested in attending the IDC meetings and he was willing to serve another year. The
intent of the Chamber position is a linkage between the IDC and Chamber Board.
C. Vote to elect 2005 IDC Officers: Chair, Vice Chair, and Secretary.
Tom Lindquist made a motion to elect Dan Olson as 200.5 Chair of the IDC. Seconded by
Mary Barger and with no other nominations, the motion carried.
Mary Barger made a motion to elect Paul Kleinwachter as 2005 Vice Chair of the IDC.
Seconded by Tom Lindquist and with no other nominations, the motion car~~ied. Tom
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IDC Minutes - 01/04/05
Lindquist made a motion to appoint Koropchak as recorder. for the IDC. Seconded by
Mary Barger and with no other nominations, the motion carried.
D. Review and vote to amend or re-affirm the IDC 2004 Action Statement and
Organizational and Membership Guidelines for 2005.
The IDC membership agreed to re-affirm the IDC 2004 Action Statement and Organization
and Membership Guidelines for 2005.
Other Business.
A. Chamber Updates.
Feaski promoted the Chamber Annual Fund-raiser (Theater and Silent Auction), Friday,
January 21, 2005, at the Community Center. Tickets are $50 per person. At the regular
Chamber meeting on February 17, the guest speaker will be Mary Kiffineyer, Secretary of
State.
B. Next IDC meeting -February 1, 2005.
9. Adjournment.
Bill Tapper made a motion to adjourn the IDC meeting. Seconded by Mary Barger, the
meeting adjourned at 9:00 a. m.
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Ollie Koropchak, Recorder
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