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IDC Minutes 05-02-2006MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Tuesday, May 2, 2006 - 7:00 a.m. Academy Room -Monticello Community Center MEMBERS PRESENT: Chair Paul Kleinwachter, Vice Chair Mike Benedetto, Mary Barger, Bill Tapper, Dick Van Allen, Don Roberts, Dan Olson, Barb Schwientek, Lynne Dahl-Fleming, Don Tomann, Tom Feaski, Jim Johnson, Zona Gutzwiller, and Michele Hertwig. MEMBER ABSENT: Kelli Huxford. STAFF PRESENT: Ollie Koropchak. COUNCIL LIAISON PRESENT: Council Member Wayne Mayer. IDC MISSION STATEMENT: To increase the industrial tax base, to create jobs at liveable wage-levels, and to maintain a favorable and desirable industrial environment in the City of Monticello. 1. Call to Order. (Please read the minutes and information prior to the meeting. • Chair Kleinwachter called the IDC meeting to order at 6:56 a.m. declaring a quorum. 2. Vote to approve the March 7, 2006 (not submitted) and April 4.2006 IDC minutes. Mike Benedetto made a motion to approve the April 4, 2006IDC minutes. Seconded by Mary Barger and with no corrections and additions, the minutes were approved as written. 3. Add on items: Motion to accept IDC Mission Statement and hear report from Feaski. Chair Kleinwachter noted the Mission Statement was previously and extensively discussed and informally accepted as ranked. At the April meeting, Tapper requested a proposed modification to the statement be placed on the May agenda. Koropchak reported that at the March IDC meeting, the results of the survey by members included ranking of four suggested options as the Mission Statement. The above Mission Statement ranked number one with five votes. Kleinwachter requested a motion to accept the Mission Statement: To increase the industrial tax base, to create jobs at liveable wage-levels, and to maintain a favorable and desirable industrial environment in the City of Monticello. Barb Schwientek made a motion to accept the Mission Statement as ranked by the IDC members. Mary Barger seconded the motion and with no further discussion, the motion carried. Yeas: 12 Nays: 1. • IDC Minutes - 05/02/06 • Kleinwachter then asked Tapper if he'd like to discuss his request now or later on the agenda. Tapper stated he voted against the motion as he requested last month to bring forth language which in his opinion is a better way to state the IDC Mission. It states the same thing in a broader and nicer way. Proposed language: "To create and maintain an environment which encourages top quality industries and commercial businesses to come to and stay in the community." He questioned, "What does industry mean?" Should the IDC be interested in industry and commercial? He stated: It's more than heavy industrial going over-sea, all industry is going over-sea. The trend is away from manufacturing continued Tapper. So what is the environment of Monticello? Does the IDC promote distribution companies such as Dahlheimer's and Strategic Equipment and Supply Company? Tapper referred to Charlie Pfeffer's comment at City Council referring to the Rogers Industrial Park. Comments were made by IDC members: Tomann felt the statement made about "all manufacturing is going over-sea" was a very broad statement. Tomann liked the current definition of "liveable wage- levels". Industry means many things including distribution centers. Rogers is not entirely made up of distribution centers which were targeted for the purpose of tax revenue. Tomann liked the verbiage "top quality industries". Koropchak recalled a previous comment by council representation endorsing the inclusion of tax base in the mission statement because of their focus of tax levy and budget. Council Member Mayer noted his insight shared with the HRA, that not only wage-levels be a criteria but measurable benefits especially retirement plans was important to him. Koropchak reminded members that in the new industrial park the $1 per sq • ft incentive is offered to businesses who meet a job and wage-level criteria, building value, and building to land ratio. This does not exclude businesses who do not meet the criteria to purchase land at the market price; however, the protective covenants apply to the first 35 acres. The zoning district identifies the use. Feaski liked Tapper's version as he felt the IDC can not control wages and it was a brief political statement. Tapper reminded the membership that the IDC is a lobbying organization, independent of the city, which only meets in city hall. Benedetto liked the inclusion of commercial as commercial helps to bring roof-tops (students/medical patients) and in certain cases, would it not be beneficial to lobby for commercial? Kleinwachter liked the focus of industrial. Koropchak asked about the definition of commercial: service, retail, office, etc. and noted it was important not to duplicate the focus or role of the Chamber. Barger liked the mission statement as stands: jobs and liveable wage- levels and tax base. Tomann was OK with the IDC promoting commercial as its good for the whole of the community. Bill Tapper made a motion to table modification of the mission statement. Dick Van Allen seconded the motion. Discussion followed on how to proceed. It was suggested for Mike Benedetto to draft a mission statement for the June IDC meeting with the assistance of individuals with concerns. Tapper amended his motion to include requesting Benedetto and others to prepare a draft of the mission statement for the June meeting. Van Allen accepted the amended motion and then seconded the amended motion. Motion carried. 4. Mayor's City Update: • A. Status of AVR litigation/negotiations. Council member Mayor noted the Council received some bad information and the decision may come back to haunt them. AVR 2 IDC Minutes - 05/02/06 . has accepted the city's offer; however, site and building plans have not been submitted. B. Status of RFP for hiring consultant to update Comprehensive Plan. Four consultant firms were interviewed and the Council approved the hiring of Hoisington Koegler. At the direction of the Council, a task force is being formed consisting of about 20 individuals representing local jurisdictions and members-at-large. The IDC is requested to have one representative and an alternate, this to be on the June IDC agenda. The Council is expected to approve the Contract with Hoisington at the May 8 Council meeting. C. Status of YMCA property. The City is interested in partnering with the County for purchase of the property as a regional park. The YMCA doesn't like designation of park space as limits their availability to receive funding. It's back to the City Planning and Zoning who may place a moratorium during comp plan update. Mayer said it was bad timing to have increased the park fees to $3,500 per residential unit, given the decrease in the housing market and the unknown availability of the YMCA property. He continued stating the approved increase in January was the result of a survey showing Monticello fees below the average of surrounding communities and was prior to any discussion to purchase the YMCA property. Some developers now recognize it's not the fee increase but the high price of land which has changed their minds to move forward with development. Feaski stated he recalled the IDC recommended a gradual increase on park fees rather than the one large increase. • D. Fiber Option Task Force. Dahl-Fleming reported the Council approved the hiring of CCG Consultants to prepare the Feasibility Study. Springsted, a MN public financing firm, will partner with them because of their expertise in Minnesota financing. The study is expected to be completed by August. One of the reasons the task force is pursuing fiber optics is to force competition into the area. www.monticellofiber.com E Ouestion/answer ep riod. None. 5. Restate role of the IDC subcommittees. A. Activity Report from each of four subcommittees. Van Allen reported the BRE group met and agreed to 1. the need to identify business issues: company future plans, why did they leave Monticello such as Clow Stamping, etc. Retention of business is more cost effective. 2. The need to create and maintain a data base of industries. 3. The need to identify resources. 4. Agreed BRE will meet at times other than IDC meetings. Dahl-Fleming reported the current marketing budget is $4,000. A budget request will be submitted to Council for billboard along I-94, development of fliers and entrance sign. She reported having attended the Wright County Partnership Seminar on industrial development and noted C B Richard Ellis highlighted activity in Wright County, stated they did not support cities in the business of land development; however, praised Monticello's marketing strategy with the use of billboards and the web site. 3 IDC Minutes - 05/02/06 • Barger expressed interest or volunteered to be the IDC representative on the Comp Plan Task Force. Feaski reported on a recent project which began last fall. After review of plans by staff and consultants, 52 items were listed as revision recommendations. Having satisfied the 52 recommendations, the building permit fee was $36,000. The developer decided to wait until spring to commence construction. In the spring, they were notified of a 3% fee increase and the permit was ready to pick up. Upon picking up the permit, eleven more items were circled as revision recommendations, the permit fee increased to $40,000 from the previously stamped- approved plans, and they were asked to sign a $10,000 assessment agreement for trunk fees. Now having commenced construction, last week the project was stopped by a utility permit as the 6 inch and 8 inch collector water/sewer pipes were too small adding another $4,600. Feaski said the city engineer plan review fee is $5,000 and in his 16 years of business, he's only been stopped twice on a project and both times it was in Monticello. Feaski's report was directed to the BRE group for further review. Benedetto stated this is an example how the structure of subcommittees can be a voice for industries. Mayer said the subcommittees add value to the IDC. Kleinwachter requested the document "How to site and develop your business in Monticello" be provided to Van Allen. It's time-line still needs to be addressed. Tapper reported the transportation group had not met. He reported he and Barb were . recently in Chicago and rode the light rail all day for $5.00 stating he felt the forthcoming light rail would have a great impact. While the local bridge is under construction, he noted the impact of traffic at the intersection of School Blvd and Fallon Avenue. Mayer requested they also check the intersection of River Street and Highway 25 and report traffic concerns to the Police Commission. B. Discuss attached language for the IDC Mission Statement. Discussed earlier in the agenda. 6. Reports: A. Economic Development Report. Report accepted as written. Tapper asked about the Clow Stamping building and if the property had been sold? Koropchak was unsure. Tapper has received a number of calls for his I-21ot and the real estate agent said Monticello was hot. Koropchak agreed stating a number of companies are looking to construct metal buildings with outdoor storage. There are four privately-owned vacant lots in the Oakwood Industrial Park (I-2 Zone) which Koropchak provides owner's name and phone numbers to interested parties. B. Proposed Open and Outdoor Storage Amendment by Tapper. Tapper reported the small group's objection to the proposed ordinance amendment for open and outdoor storage is the CUP required for front-yard outdoor storage in an I-2 District and the lack of definition of front yard. At the Apri124 Council meeting, the council requested a workshop which at this time has not been scheduled. A resolution • is real close. Tapper provided a background stating the ordinance amendment proposed by the City started about 2 %2 years ago when Simonson Lumber, a retail 4 IDC Minutes - 05/02/06 • business in a I-2 District, wanted to expand their outdoor storage area. How far from lot line and how can city enforce were questions to resolve when a small group of business owners were asked to give their opinion. The industries were looking at an ordinance which makes fundamental sense and staff didn't care. About a month ago, staff made 100% turn-around and many changes were made. Tapper credited the Council for a good job at challenging the proposed ordinance amendment. Tapper was asked "What do you want?" A "yes" or "no" decision on the CUP for outdoor storage in the front yard. The outdoor storage ordinance amendment issue was deferred to the Mary Barger and the Available Industrial Land Subcommittee for a recommendations to be submitted to Koropchak for inclusion in the June IDC agenda. 7. Review the draft copy of the May 2.2006 Planning Commission Agenda for industrial related items. Discuss and vote on an IDC position or action if necessarv. No industrial items on agenda. 8. Other Business. A. Chamber Updates -Chamber Chair Hertwig reported a membership of over 250. The local government affairs committee will hold its first meeting on May 11, 7:30 a.m., anyone is welcome. The Golf Outing is May 18 at the Silver Springs Golf Course. A Monticello Retail Trade Analysis Report by the University of Minnesota Extension Service will be presented on June 27, the Chamber is looking for sponsors. B. Next IDC meeting -Tuesday, June 6, 2006, in the Bridge Room. 9. Adjournment. Tom Feaski made a motion to adjourn the IDC meeting. Seconded by Lynne Dahl- Flemingand with no further business, the meeting adjourned at approximately 9:00 a.m. ~ ~ ~ ~~ K Ollie Koropchak, Recorder • 5