IDC Minutes 10-28-2004MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Thursday, October 28, 2004 - 7:00 a.m.
Academy Room - 505 Walnut Street
MEMBERS PRESENT: Vice Chair Dan Olson, Mary Barger, Bill Tapper, Mike Benedetto,
Kelli Huxford, Tom Feaski, Lynne Dahl, and Paul Kleinwachter.
MEMBERS ABSENT: Chair Tom Lindquist, Dick Van Allen, Tom Ollig, Don Roberts, and
Barb Schwientek.
LEAVE OF ABSENCE: Don Tomann.
COUNCIL LIAISON ABSENT: Mayor Bruce Thielen.
STAFF PRESENT: Ollie Koropchak.
GUEST: Steve Grittman, Northwest Planning Consultants, Inc.
IDC MISSION STATEMENT: To maintain and increase the industrial tax base and to
create jobs in the City of Monticello, Minnesota.
1. Call to Order. (Please read the minutes and information prior to the meetin~~
Vice Chair Olson called the IDC meeting to order at 7:00 a.m. declaring a quorum.
2. Vote to annrove the October 5. 2004 IDC minutes.
Bill Tupper made a motion to approve the October ~, 2004 IDC minutes. Tom Feaski
seconded the motion and with no corrections or additions, the minutes were approved as
written.
3. Follow-up and discussion of the City Council action to authorize a purchase a,~reement for
acquisition of industrial land.
A. Public Hearing -Preliminary and Final Plat for Otter Creek Crossing, a .proposed commercial
and industrial subdivision in the B-4 and A-O districts (Planning -November 1 and Council -
November 8) The preliminary and final plat for Otter Creek Crossing (185 acres) is scheduled
for the Planning and Council meetings as stated. The revised October 21 plat does not show
the blanket easement for access to 90t" Street nor the two drainage easements as requested by
staff and city consultants.
Call for a public hearing date of December 7 for re-zone of 120 acres of Otter Creek Crossing.
On the Planning Commission agenda for November, the commissioners will be calling for a
public hearing date of December 7 for re-zone of the 120 acres of Otter Creek Crossing. Due
to the fact, the IDC should make a recommendation to the Planning Commission. Steve
Grittman, Northwest Consultants was invited to the IDC to define zoning and covenant options.
IDC Minutes - 10/28.2004
ZONING OPTIONS: Mr. Grittman presented four zoning options for the IDC to consider
stating: Option 1: I-I A Light Industrial District. This zone covers the area of UMC, TCDC,
and Suburban. The uses are the same as in the I-1 district with the only difference being the I-
IA has a higher standard ratio of exterior building materials. Both I-lA and I-1 allow outdoor
storage by a conditional use. The attachment provided listed the uses. Option 2: I-1B creates
a new Light Industrial District zone to include higher standards. Option 3: I-1 Light Industrial.
This zone covers the area of IRTI, previous Fingerhut, and FSI. Option 4: I-2 Heavy
Industrial. Thia zone covers the area of JME, Standard Iron, and Genereux Fine Wood
Products. Outdoor storage is allowed.
Mary Barger informed IDC members that the Small Group discussed creating a new zone, I-
1 B, to include some higher standards for landscaping, irrigation, exterior building materials, and
outdoor/open storage. The other option discussed was I1-A with covenants. The Small Group
recommended the Otter Creek Crossing of 120 acres be zoned I-1 A with the creation of
covenants. The Small Group felt the creation of a new type of zoning district may give the
public perception that the city creates a new zone when they own land. Mr. Grittman noted an
I-IA zone with covenants is more difficult to enforce and a new zone of I-1B is cleaner, but
future Council can change. Barger reported the Small Group only discussed covenant options
but did not make any recommendation.
DEFINING COVENANTS:
Mr. Grittman continued by defining some of the potential covenants: 1) Outdoor/Open Storage
means any permanent stored material such as finished products, raw materials, trailers un-
hitched and parked vehicles not used for everyday operation. Trash containers are not
considered outdoor/open storage and may be outside but enclosed and screened. Current
ordinance allows outdoor/open storage by a conditional use in an I-1 and I-lA zone and is
allowed in an I-2 zone. All zones require outdoor/open storage to be screened/bermed.
According to Mr. Grittman, outdoor/open storage is the most difficult ordinance to enforce.
Members asked how the competing communities handle outdoor storage? Big Lake, Becker,
Buffalo, Rogers and the metro do not allow outdoor/open storage. Although, the City of
Rogers still has a limited area which does allow outdoor/open storage. Members asked about
the type of business targeted and if outdoor/open storage was not allowed, would it be a
detriment? For businesses like the UMC, TCDC, Genereux, WSI, and Production Stamping,
not allowing outdoor/storage doesn't appear to be an issue. What about
warehousing/distribution like Dahlheimer? This more of a gray area. Dahlheimer's trailers
appear to be used for daily operations.
2) Landscaping refers to minimum size of planting, species, and sodding & ground cover.
3) Irrigation -Potential covenant to cover front and side perimeters. This currently not in the
City Ordinance but is covered in the Monticello Commerce Center through private covenants
by Pfeffer or Weinard. One member thought it enhances afront-door image.
4) Exterior building material type -Under the current I-lA zone, the exterior building material is
restricted to 50% something other than metal on all four sides. The potential covenant - to not
allow metal or steel exterior building materials. One member did not support this.
Things for the IDC to think about are competition, targeted business, the long-term good of the
city, and what can the city expects in return for offering land for $1 per sq ft without
assessments? Grittman reminded members of their mission to create tax base and job density
and livable wages.
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IDC Minutes - 10/28.2004
The IDC did not make any recommendations and requested the Small Industrial Group
meet to make a recommendation on covenants to the 1-1 A zone. Koropchak noted the
IDC would need to make their recommendation on December 7 as the Planning Commission
meets that evening. The HRA, since they contributed funds for land acquisition, will be asked
to make their recommendations at their November meeting.
B. Rask annexation resolution will accepted by State Board in mid-November.
G Council authorized preliminary survey and reparation of plans and specs for Chelsea Road
West and School Blvd on October 25, 2004.
D. Marketing and Performance Measure -Koropchak reported Wolfsteller and she met with
HRA Attorney Bubul and Mark Ruff to go over the proposed Performance Measures and to
make sure our plans for financing and marketing were legal, to verify the proposed process
and to ensure aone-stop shop deal. It was suggested by the HRA Attorney for Wolfsteller to
check if the Purchase Agreement was assignable and request the Council assign the Purchase
Agreement to the HRA. This would allow the marketing, negotiation, deal packaging, TIF
District establishment, platting, and land transaction all in one area. The Council would still
have final approval. Ruff was going to do another financing analysis based on assumptions after
receiving revised infrastructure costs from the City Engineer.
E. Closing and purchase of 35 acres and contract for deed. With the City having purchased the
Rask property and the Assessment and Development Agreement signed by Chadwick, it is
anticipated that the closing for purchase of the 35 acres and the contract for deed will take
place the end of November following the platting of Otter Creek Crossing. Platting will allow
for clearer legal descriptions such as lots, blocks, or outlots rather than by metes and bounds.
F. Easterl~property. The remaining easterly portion of the Rask property will be platted
later for purpose of Chelsea Road extension and connnection.
4. City Update:
A. Visionin /Sg trategic Planning Process. The Council Special meeting of October 25 to review
proposal from Springsted was cancelled.
B. I-94 and County Rd 18 interchange. Council authorized plans and spec. Grittman noted Ryan
/Streeter want funding decisions for the interchange on the December 13 Council meeting.
C. Commercial/residential developments. On behalf of city administration, Grittman reported that
Walmart pulled their building permit, Applebee's was presented an offer from the City for the
land next to Culver's, Caribou Coffee is remodeling the old Dairy Queen, and housing
developments forthcoming are Insignia, a mixed use/residential of 700 units, Gold Nugget has
requested their next annexation, Silver Springs plus other parcels 300-400 units, and Hunter's
Crossing plat is done. The interest in development continues reported Grittman.
5. Reports:
A. Economic Development Report - In addition to the written report, Koropchak added the Tire
Service Equipment Mfg. Company is expanding by 12,000 sq. ft (Ray Schmidt). Standard
Iron plans to sell their building and land to Walbord, Inc. of Fridley with a lease back of the
office space. Walbord, Inc. with 3/4 of their inventory in shipping and receiving will screen the
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IDC Minutes - 10/28.2004
outdoor storage in this I-2 zone. Closing expected mid November. A call/collection company
is looking to purchase the building previous occupied by Fingerhut. The written report was
accepted.
6. Review the draft copy of the November 1, 2004 Planning Commission Agenda for industrial
related items. Discuss and vote on an IDC position or action if necessarX.
Planning Commission items 8 and 9 were previously discussed by the IDC. Item 10 is a public
hearing to amend the City Ordinance allowing outdoor and open storage. With no written
narrative provided in the Planning Commission package, IDC did not discuss this item.
Koropchak noted she will be attending the Planning Commission meeting and this item pertains
to existing and developed industrial zones. It is her understanding, city staff is looking for
direction and discussion from the Planning Commission on November 1.
7. Other Business.
A. Chamber Updates - Feaski reported the Chamber will co-host the Halloween Parade and
Party on Saturday from 10:00-12:00 at the Community Center; next regular Chamber meeting
at the Hospital, November 18; Home for the Holidays set for December 3; Chamber Annual
Banquet/Silent Auction set for Saturday, January 21; and the Chamber will endorse Xcel and
NMC with a resolution of support for re-licensing and die cask storage.
B. Next IDC meeting, Tuesday, December ~, 2004, WSI Industries
8. Adjournment.
The IDC meeting adjourned at 8:15 a.m. by a consensus of the group.
Ollie Koropchak, Recorder
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