IDC Minutes 09-07-2004MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, September 7, 2004 - 7:00 a.m.
Academy Room - 505 Walnut Street
MEMBERS PRESENT: Chair Tom Lindquist, Vice Chair Dan Olson, Mary Barger, Dick Van
Allen, Mike Benedetto, Tom Feaski, and Lynne Dahl.
MEMBERS ABSENT: Bill Tapper, Tom Ollig, Don Roberts, Barb Schwientek, Kelli Huxford,
and Paul Kleinwachter.
LEAVE OF ABSENCE: Don Tomann.
COUNCIL LIAISON ABSENT: Mayor Bruce Thielen.
STAFF PRESENT: Ollie Koropchak.
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 meeting.)
Chair Lindquist called the IDC meeting to order at 7:00 a.m.
2. Vote to approve the August 3 2004 IDC minutes
Mary Barger made a motion to approve the August 3, 2004 IDC minutes. Seconded by
Dan Olson 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 urchase a_reement for
acquisition of industrial land
A. Scheduled closing date September 8 for Otter Creek and September 15 for Rask
arcel.
Koropchak informed the IDC that it was doubtful the closing would take place tomorrow,
September 8. The Chelsea Road alignment, the 35 acres for immediate purchase at closing,
and the finished grading elevation of the mining area were yet to be determined and described
by the City Engineer Consultant. Additionally, the final draft of the Development Agreement
and Assessment Agreement were not prepared by the City Attorney. In August, Dan Frie,
staff, and Chadwick met to review items yet to be completed. Chadwick distributed a check
list and tasks were assigned. Since the Purchase Agreement was approved by the Council on
May 24 and the closing has yet to take place, the IDC asked "why does the city not want to
close on the Otter Creek property?" Does the Administrator not want to spend the money or
does staff/council want to first determine dollars and authorize plans for construction of the I-
94/County Road 18 interchange? The IDC members saw the interchange project and the
Chadwick purchase as two separate projects. The IDC understood funding for the first-35
acres (about a million dollars) had been committed by the HRA and Colmcil over the years and
IDC Minutes - 09/07/04
with recent sales of the City/Remmele parcels to Muller Theater and Culver's, available funds
shouldn't be an issue. Koropchak noted Chadwick's frustration as well as her own for delay of
the closing. Koropchak also acknowledged the deal was complicated and recognized the
continuous changes in the deal; however, she did not understand why the closing was not a top
priority. Feaski stated because of the proposed design of the interchange he felt the proposed
dollars for the I-94/County Road 18 interchange would be better spent on the Orchard Road
interchange and that the Orchard Road interchange would better serve the community.
Koropchak also noted her concern with Chadwick's request to plat the Moon Motor and the
commercial zoned parcel without including the Rask parcel and particularly without the
Assessment and Development Agreements executed. It is important to have the Rask parcel as
apart of the plat to ensure the construction of Chelsea Road. Without the construction of
Chelsea Road, the City's 120 acres has no access. With the increase in land values since
negotiations began with Chadwick, the IDC members were concerned the City might loose the
deal. Additionally, with the City having already re-zoned approximately 150 acres of industrial
land to commercial, this leaves little or no industrial land sites to market. The IDC agreed and
recommended Chair Lindquist follow-up with a call to the Mayor, Council, or
Administrator as to why the delay in the closing of Otter Creek Crossing and to close
.SAP. Members were reminded the next step is to ask Council to authorize a study for
construction of the infrastructure: lift station, utilities, and Chelsea Road in order for construction
to begin spring 2005.
B. Joint resolution for annexation approved by Council August 23 Includes 120 acres.
Resolution was forwarded to state for review and comment on the annexation and is expected
to be on their September agenda.
C. End Use Plan for Grading.
Koropchak noted that Bret Weiss and she drove the site after the August meeting. There was
no evidence of seeding as was indicated by the sellers and Koropchak was surprised at the
elevations. According to the End Use Plan from the County, the elevation drop at the southerly
and westerly boundaries is about 30 feet. The City Engineer is working with the seller to
minimize the City's expense for future grading.
4. Cit~Updates:
A. Annexation.
With no administration present, no update.
B. Meeting of city officials to set 2004 Council's Community Vision & Governing Policies
With no administration present, no update.
C. Proposed I-94 and County Rd 18 interchange and I-94 re-ali n~ ment
With no administration present, no update.
D. Commercial/residential developments
With no administration present, no update.
5. Reports:
A. Economic Development Report
Koropchak noted the frustration with the inability to actively market Monticello for industrial
development as the Otter Creek Crossing property has not closed. Given the years the
property has been under negotiations, she can not market the property without an availability
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IDC Minutes - 09/07/04
date and infrastructure completion date. She has talked to Dahlheimer Distribution about their
proposed building plans, the county assessor and has a Monticello package ready; however,
the City can not offer land they do not own. Koropchak is aware that Big Lake has presented
Dahlheimer with an offer and their market area is Anoka and Elk River. With Dahlheimer's
being along-time Monticello business, it's very disappointing not to present a package
encouraging them to stay in Monticello.
It was also noted, independent of the City or IDC, Van Allen is exploring which Monticello
manufacturers might be interested in hosting a tour and going on a tour. Of the 15 letters
mailed, six were returned. Four manufacturer's were interested and two said no.
6. Review the draft co of the Se tember 7 2004 Plannin Commission A enda for industrial
related items. Discuss and vote on an IDC osition or action if necessar .
A. Public Hearin -Consideration of a request fora Simple Subdivision to create two
industrial lots m an I-2 district. A licant: Standard Iron & Wire Works.
Koropchak explained that Standard Iron is requesting a simple subdivision. When the original
52,000 sq ft building was constructed part of the building lies within the second lot to the east.
It is Koropchak's understanding that Standard Iron has a purchase agreement on the building.
The subdivision would allow them to sell the building and lot to the west and retain the
subdivided approximate 3-acre parcel to the east. Koropchak has spoke with the potential
buyer, a company currently located in Fridley. She believes Standard Iron will lease back the
10,000 sq ft office space as Monticello is their headquarters. The IDC speculated on Standard
Iron's long-term presence in Monticello.
7. Other Business.
A. Chamber Updates
Feaski reported that 175 people responded to the Chamber Industrial Business Luncheon
featuring Governor Pawlenty as guest speaker on September 9, 1 I :30 a.m., Silver Springs.
The Candidates Forum will be held September 28 at the Community Center, time to be
announced.
B. Next IDC meeting Tuesday October 5 2004
In the future, the IDC will tour WSI, have breakfast at Sunny Fresh and tour their new offices
under construction, and meet with Xcel representatives for an update of "dry cask storage" in
Monticello.
8. Adjournment.
Dick Van Allen made a motion to adjourn the IDC meeting. Seconded by Mary Barger
and with no further business, the IDC meeting adjourned at 8: 00 a. m.
Ollie Koropchak, Recorder