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IDC Minutes 02-06-2007MINUTES MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Tuesday, February 6, 2007 - 7:00 a.m. Bridge Room, 505 Walnut Street, Monticello, MN MEMBERS PRESENT: Vice Chair Mike Benedetto, Mary Barger, Bill Tapper, Dick Van Allen, Don Roberts, Dan Olson, Lynne Dahl-Fleming, Zona Gutzwiller, and Patty Haiby. MEMBERS ABSENT: Chair Paul Kleinwachter, Barb Schwientek, Tom Feaski, Kelli Huxford, and Jim Johnson. STAFF PRESENT: Ollie Koropchak. COUNCIL LIAISON PRESENT: Mayor Clint Herbst. 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.) Vice Chair Benedetto called the IDC meeting to order at 7:00 a.m. declaring a quorum. Benedetto welcomed new member Patty Haiby of Twin City Die Castings who is representing the Chamber this year. 2. Vote to approve the December 5.2006 and January 2.2007 IDC minutes. Bill Tapper made a motion to approve the December S, 2006 and January 2, 2007IDC Minutes. Dan Olson seconded the motion and with no corrections or additions, the IDC minutes were approved as written. 3. Follow-up Business or Reports: A. Marketing Committee Dahl-Fleming reported the ad and community page for the 2007 Wright County Economic Development Directory was updated and submittted. The I- 94 billboard will have a new location and somewhat of a new look beginning August 2007. Koropchak reported the Kleinwachter and herself will be meeting with nine SCSU students and their professor on Monday, February 12. This a first meeting to answer questions of the students as they begin the feasibility study identifying current assets and shortcomings of Monticello as a potential location for a high tech/life science industrial park. B. BRE/Town Hall Concerns/Issues -Van Allen said the group was analyzing the objective and uses of a data base prior to expanding the city manufacturer's data base. C. Industrial Land/Outdoor Storage (Comp Plan) -Gutzwiller reported the subcommittee IDC Minutes - 02/06/07 of Barger, Feaski, Frie and herself met with Mayor Herbst and came up with the Schluender mining area to the south of 90`~ as a possible immediate industrial site. Barger reported on the Comp Plan meeting of February 1 which focused on industrial. Industrial was defined as: industrial and business campus. Suggested areas were expansion of Monticello Business Center as business campus, the southeast corner of Highway 25/85th Avenue as industrial, and the area to the northwest near the proposed I-94/Orchard Road interchange. The next Task Force meeting is February 22 and will focus on housing. Mayor Herbst distributed a map and noted that Chadwick appears interested in selling his property within Otter Creek Crossing. Additionally, he has control of the approximate 50-acre parcel to the immediate south of the Monticello Business Center. With the utilities in-place, this seems like a natural progression. Tapper expressed his interest in the city acquiring Area A and B on the map and particular Area A as the city owns the property directly across I-94. This area for a future interchange. Area A was requested to be on the March IDC agenda for further discussion. D. Transportation -The subcommittee has not met. 4. City Update: A. Stabilization Agreement -Mayor Herbst reported Xcel Energy has a rate decrease request into the Legislation. These changes can have an effect on the City. The Stabilization Agreement, in-a-sense, is a lock-in agreement which will be addressed at the Council meeting on February 12. B. Proposed Chelsea Road Improvements. Council Public Hearing. February 12 Herbst reported the Agreement notes the commencement of the Chelsea Road reconstruction in 2007 which would give Pfeffer the ability to market the area. Most people have heard about the potential of a Fleet Farm. The Council will hold a public hearing and consider ordering the reconstruction project on Monday night, February 12. C. YMCA property -The appraisers representing the City/County and YMCA are scheduled to talk. D. Fiber Optics -Dahl-Fleming reported that Council Member Mayer and herself testified before the Telecommunication Subcommittee. The State is considering whether they should be involved in fiber optics. The Task Force has Council approval for moving forward with pre-engineering and design. These are requirements for revenue bonding. Next Council workshop/action scheduled for mid to late March. E. Question/answer period. None. 5. New Business. A. Consideration to discuss Chelsea Road Improvements and vote on an IDC position or action if necessary. Koropchak gave a brief background to the Chelsea Road Reconstruction Project stating the property owners along Chelsea Road were invited by WSB, individually, to hear about the project and the estimated assessments. These meetings were held prior to the January 22 Council meeting to accept the Feasibility Study and call for a public hearing date. Some business people were also informed about the potential of a re- 2 IDC Minutes - 02/06/07 zone from industrial to retail. A number of the industrial owners addressed the Council at the January meeting. At the next Council meeting of February 12, the Council will hold a public hearing and consider ordering the reconstruction project. The IDC may wish to take a position or not. Mayor Herbst noted the assessments for the interchange were high. Within the agreement which was in-place before, the city agreed to reconstruct Chelsea Road then Monticello Industrial Park, Inc. could market. Roberts felt the reconstruction project and re-zone was driven by the developer and the past agreement. Haiby felt the rezone to retail would bring down the value of their property and impact future development plans. Tapper stated a 2007 commencement date for reconstruction is not in the agreement and questioned the need for the road and storm water improvements. He also noted that for a long time he has advocated the City of Monticello would become a main commerciaUretail hub. Roberts questioned the timing as he received an email a few days ago with information about the project. It appears the project came out of no where and is moving along fast. Benedetto agreed with so many issues, the project is moving along quickly. Herbst thought the city may receive better bids. Olson asked, is Chelsea a major school road? Tapper said he had not noticed a change in traffic volumes along Chelsea Road between pre interchange and post interchange. Benedetto reiterated the need for more time for such a complex issue. Tapper stated it appears the cart is before the horse so to speak. Why replace a good road before a request for re-zone? Is WSB driving the project? In comparison, Fallon Avenue is the road in a deteriorated state not Chelsea Road. Tapper also questioned the 28% contingency fee? Roberts and Benedetto both agreed this appeared high. Timing and the lack of benefits of the reconstruction project at this time appeared to be the consensus of the IDC. If Fleet Farm says "yes" than do, but in anticipation of a Fleet Farm, then request the city to defer was Tapper's thought. Herbst said for the Council, a deferral is driving away a tax base. Koropchak said the city hires her to recruit industrial businesses and to retain industrial businesses who have invested dollars and time into Monticello. She is very disappointed that the businesses were not given the opportunity to give input prior to approval of the agreement. Barger spoke on behalf of Tomann stating his concern with the potential re-zone to commercial. A commercial use which supports industrial businesses such as a day care, restaurants, hotel with conference center seems reasonable but a retail use such as a big box increases traffic, increases security issues, and lowers property values. UMC invested over 4 million dollars into the City of Monticello. Haiby stated TCDC has concerns that once the industrial businesses become the minority, neighborhood complaints would surface. Benedetto noted this is a tough and complex decision and needs more time. Bill Tapper made a motion that the IDC recommends the City Council defer reconstruction of Chelsea Road until such time a re zone or a major buyer deems the need to reconstruct Chelsea Road and recommends the City Council seek competitive bids for engineer and management project costs. Dick YanAllen seconded the motion and with no further discussion, the motion carried. Benedetto requested Koropchak draft the recommendation letter for the Council from the IDC. Submission subject to his review and signature. 3 IDC Minutes - 02/06/07 6. Re~rts: A. Economic Development Report - In addition to the written report, Koropchak informed members that the Preliminary Development Agreement and deposit of $10,000 was received from Walker In-Store. Establishment of the TIF District and preparation of the Purchase and Development Agreement has been authorized. The business will purchase Lot 2, Block 1, Otter Creek Crossing 3`d Addition. At the Ehlers Conference, Koropchak attended the following sessions: State of Single Family Residential Market, Creative Financing Ideas, Bonds as Development Tools, Negotiating 101, Bank Financing and Developer Proformas, Property Rights and Legal Limits for Land Use Control. 7. Review the draft copy of the February 6, 2007 Planning Commission Agenda for industrial related items. Discuss and vote on an IDC ,position or action if necessarX A. Public Hearing - Consideration of a request for a simple subdivision in an I-2 (Heavy Industrial) District. Steve Birkeland. Jr. The IDC reviewed the survey for the simple subdivision request by Birkeland, Jr. for the property located at Dundas Road and Fallon Avenue in an I-2 Zone. The IDC agreed with the recommendation of staff provided the Exhibit Z conditions were met. 8. Annual Meeting: A. Acceptance of IDC membership three-year term -Barger Van Allen Olson and Schwientek. Given the four individuals were willing to serve another term, Dahl- Fleming made a motion to accept the IDC three year membership term for Barger, VanAllen, Olson, and Schwientek. Roberts seconded the motion and with no further discussion, the motion carried. B. Request for Standing Committee Members: President or Chair of Chamber and Mavor/Council of Monticello. Barger made a motion to amend the Monticello IDC Organizational and Membership Guidelines, Section IV. Standing Committee Members to read: the Board of Directors of the Monticello Chamber of Commerce and Industry shall appoint a member to the IDC. Seconded by Gutzwiller and with no further discussion, the motion carried. Tapper made a motion to amend the Monticello IDC Organizational and Membership Guidelines, Section IV. Standing Committee Members to read: the City Council shall appoint the Mayor and a Council Member to the IDC as non- votingmembers. VanAllen seconded the motion and with no further discussion, the motion carried. C. Vote to elect 2007 IDC Officers: Chair Vice Chair and Secretarv Benedetto informed members of his conversation with Kleinwachter and given his career change and schedule conflicts he is unable to continue active involvement in the IDC; however, Paul would like to stay active in the community and continue being involved with SCSU students/feasibility study process. Benedetto requested the IDC send an acknowledgment of appreciation to Paul. Benedetto continued stating due to medical and retirement reasons, he prefers staying involved with the IDC and offered to 4 IDC Minutes - 02/06/07 remain Vice Chair. Tapper made a motion to elect Mike Benedetto as 2007 Vice Chair of the IDC. Van Allen seconded the motion and with no further discussion, the motion carried. Tapper made a motion to table election of the 2007IDC Chair. Dahl-Fleming seconded the motion and with no further discussion, the motion carried. Benedetto and Koropchak to meet to discuss recommendations for Chair. Barger made a motion to elect Koropchak as the 2007 IDC Secretary. VanAllen seconded the motion and with no further discussion, the motion carried. D. Review and vote to amend or re-affirm the IDC 2006 Action Statement, Organizational and Membership Guidelines (discuss meeting date and time), and 2006 Goals and Tasks for 2007. Dahl-Fleming made a motion to table Item D. Seconded by Tapper and with no further discussion, the motion carried. 9. Other Business. A. Chamber Updates - Haiby reported the Monticello Chamber was named among the top 25 Chambers in Minnesota by membership size. They are looking into a Grow Minnesota Program for business retention, they elected to discontinue the Government Affairs Committee due to lack of activity, and the February meeting will feature a presentation about credit rating. B. Next IDC meeting -Koropchak informed members that she will not be present at the March meeting and asked if they wanted to meet or cancel the March meeting. The membership agreed they need to meet on March 6, 2007, and Dahl-Fleming volunteered to take minutes. Koropchak noted she would prepare and mail the March agenda. 10. Adjournment. Dahl-Fleming made a motion to adjourn the February IDC meeting. YanAllen seconded the motion and with no further business, the IDC meeting adjourned at 8: SO a. m. ~~ ~ Ollie Koropchak, Recorder 5