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-
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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.
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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
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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.
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Ollie Koropchak, Recorder
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