IDC Minutes 10-02-2007MINUTES
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
Tuesday, October 2, 2007 - 7:00 a.m.
• Bridge Room, 505 Walnut Street, Monticello, MN
MEMBERS PRESENT: Chair Mike Benedetto, Mary Barger, Dick Van Allen, Don Roberts,
Dan Olson, Barb Schwientek, Don Tomann, Zona Gutzwiller, Patrick
Thompson, and Sandy Suchy.
MEMBERS ABSENT: Vice Chair Bill Tapper, Lynn Dahl-Fleming, and Jim Johnson.
STAFF PRESENT: Ollie Koropchak and Angela Schumann.
COUNCIL LIAISON PRESENT: Mayor Clint Herbst and 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 Benedetto called the IDC meeting to order declaring a quorum and welcomed Sandy
• Suchy a temporary replacement for the Chamber.
Chair Benedetto congratulated Don Tomman, UMC, on receiving the Secretary of Defense
Employer Support Freedom Award. Don shared his experience as they traveled to D.C. to
accept the award and met with President Bush for about an hour. The award is given to 15
businesses in three different categories by business size. The award is sponsored by a volunteer
group of the Secretary of Defense. UMC was nominated by a worker who spend two years in
Iraq. The nomination was first submitted at the State level and thereafter the National level.
The award is given to companies who support their employees while serving their country and
protecting our freedom. UMC re-assured the soldier (employee) he had a job when he
returned, continued to pay his wages and health benefits to lessen family stress, and fellow
employees gave moral support and volunteered maintenance assistance to his family and sent
care packages to soldiers.
Don Roberts informed members that Sunny Fresh Foods changed its name to Cargill Kitchen
Solutions to leverage the Cargill name and marketing plan. Sunny Fresh remains the brand and
has a slightly changed but new logo. The name change also applies to the Big Lake facility.
Chair Benedetto congratulated Council member Mayer, Lynne Dahl-Fleming and others on the
fiber optics committee for a successful campaign and 74% "yes" vote on the telephone
exchange referendum.
•
• 2. Vote to approve the September 4.2007 IDC minutes.
IDC MINUTES - 10/02/07
DON TOMANN MADE A MOTION TO APPROVE THE SEPTEMBER 4, 2007 IDC
MINUTES. PAT THOMPSON SECONDED THE MOTION AND WITH NO
CORRECTIONS OR ADDITIONS, THE MINUTES WERE APPROVED AS WRITTEN.
3. The IDC requested a response to the following~guestion from Administrator O'Neill at the
October IDC meeting:
"Does the City see a need for an independent Industrial Development Committee (IDC)? The
IDC desires the continued involvement of the City Council and the Economic Development
Director."
No response was provided to the IDC at the October meeting. As a follow-up to the meeting
with the Personnel Committee, it was suggested to schedule a workshop with Council members
prior to responding to the IDC question. As of the IDC meeting, a special meeting notice for
the council workshop had not been posted according to City Clerk Dawn Grossinger. The
intent was to hold the workshop on October 8 at 5:30 p.m.
Relative to the consolidation on the HRA/EDA, a public hearing has been called for the Council
meeting of October 22, 2007. Following the public hearing, the Council will consider adopting
an amended and restated resolution enabling the creation of the City of Monticello Economic
Development Authority. It was noted the consolidation would allow for a greater connection
between city council and the city's economic development efforts.
A couple of options for the IDC: Advisory Board to the EDA or remain an independent
group. As an Advisory Board some felt the role would be another layer of government and a
voice with certain boundaries. Where the IDC as independent group has the ability to lobby or
give support. An example: Supported the efforts of the fiber optics network. Given the busy
schedule of the industrial businesses, Tomann noted another benefit of the IDC: it serves as an
information provider between business and city as a means to identify or reduce "surprises".
Mayor Herbst noted the premature resignation of members prior to resolutions. Members
noted resignations are an individual personal choice, not that of the organization. Some
members questioned: What is the benefit of an IDC, if it has no power or authority?
Benedetto noted recommendations or suggestions to Council is a good thing and should be
looked at as a means to working things out or finding resolutions.
Koropchak reported on her research of the IDC minutes. In the mid 90's, the IDC
• restructured and prepared the current mission statement, organization and membership
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IDC MINUTES - 10/02/07
• guidelines, and annual action plan. According to the minutes, the words "an independent
lobbying group" were added to the mission statement, as the members felt they would have a
greater impact as a lobbying group.
IDC members restated and requested a response to their question from Administrator O'Neill
at the next IDC agenda.
4. New Business:
A. Educational presentation by the Economic Development Director: Industrial
development competition and examples of other citesorganizational structures.
With the aid of an overhead, Koropchak made a presentation on "What's going on around us?
The presentation was based on information from the Industrial Real Estate Economic
Development Conference held on August 22 and follow-up conversations with the Economic
Development Directors as to organizational structures who promote job growth. Competition
for job growth is world-wide, nationally, state-wide, and locally (See attached Exhibit.)
Monticello must be at 100%, not 50% or 75%, in order to compete. Koropchak noted Tax
Increment Financing was not identified as the financing tool as is available state-wide and
pointed out the varied economic development organizational structures. Koropchak concluded
noting a key factor for the City of Monticello to be successful in job growth at house-hold wage
levels is to stay focused and committed to its plan. Given the competition for jobs and the slow
growth of industrial development, one must keep in mind the outside pressure from developers
and landowners to re-zone industrial land. Benedetto picked up on the words "promoters of
industrial development" by one community.
B. IDC/Chamber Partnership: Chamber/IDC Industrial Luncheon. Tuesday. October 16
2007, noon, Community Center.
Suchy reported about 50 people have signed up so far for the October 16 Chamber/IDC
luncheon honoring the local manufacturers and industries. Each business will receive a
certificate from the State. Businesses are encouraged to register for a booth as a means to
disclose job opportunities to students and informational exposure to luncheon attendees. A
guest speaker will speak on body language in the work place.
5. Reports:
A. Economic Development Report. S
In addition to the written report, Koropchak noted he met with Derek Lossing, one of the
SCSU involved in the Feasibility Study. Report accepted.
B. Fiber Optics Committee.
. Council Member Mayer reported the committee expects the incumbents to continue
dissemination of misinformation and reduced price offerings. He thanked the IDC members for
their assistance in spreading the word "the true facts". Tomann suggested the committee keep
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IDC MINUTES - 10/02/07
• the public and businesses informed as to the fiber optic implementation process and operational
date as people forget. Members agreed continued education is necessary.
C. Resignation on Chamber Board of Director Patty Haiby
No action required by the IDC as this is an appointment by the Chamber Board. The Chamber
Board will be appointing a replacement.
6. Review the draft copy of the October 2, 2007 Planning Commission Agenda for industrial
related items. Discuss and vote on an IDC position or action if necessary.
With no industrial related items on October 2 agenda, no action was required of the IDC.
7. Other Business.
A. Next IDC meeting.
With a number of IDC members expected to be absent at the November meeting, the next IDC
meeting was scheduled for Tuesday, December 4, 2007.
B. Other business.
The IDC inquired as to Xcel's timing and plans to rebuild or upgrade of the power lines and/or
substation located near Buffalo which serves the Monticello Commerce Center and Oakwood
Industrial Park areas. Pat Thompson will research and report back to the IDC.
8. Adjournment.
DON TOMANN MADE A MOTION TO ADJOURN THE IDC MEETING.
SECONDED BY DICK VAN ALLEN AND WITH NO FURTHER BUSINESS, THE
MEETING ADJOURNED AT 8:25 a.m.
~~~ ~
Recorder
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IS THE CITY OF MONTICELLO COMMITTED TO
JOB GROWTHAT HOUSEHOLD WAGE-LEVELS (INDUSTRL4L DEVELOPMENT)?
WHAT'S GOING ON AROUND US?
1. COMPETITION: World Wide, National, State, and Local.
a) World Wide -Out source in manufacturing (cheaper labor.) Advanced technology
and greater skills in math and sciences.
b) National. Example Wisconsin -Technology Zone program a maximum $5 million
income tax credits per zone for high tech growing businesses. Sales/use taxes on fuel
and electricity used in manufacturing 100% refundable. One of the best worker's
compensation programs in the nation.
c) State-wide. Examples:
*Cambridge -branding "Minnesota Opportunity Community"
- Three business and industrial parks feature excellent city services. One park, city
owned 107-acres (Cambridge Opportunity Industrial Park.)
- Closest community to Minneapolis with tax-free JOBZ development zone.
- Bio medical training opportunities (Anoka-Ramsey Community College Campus)
- K-12 technology programs -School District adopted National Educational
Technology Standards to ensure Cambridge remains a place of promise for youth
and employers.
- Cambridge EDA -commissioners are council members.
- Cambridge Alliance -structured like the IDC -members not appointed by the
council, EDA President (Mayor) is voting member, Economic Development
Director serves as staff -never been an issue about staff timing or money spend on
Alliance. Make recommendations and promoters of industrial development.
* North Branch - "A planned community for working, living, growing"
- ESSBY Park 400 acres (EDA/County HRA Partnership):
* 206 acres business and industrial development
* 100 acres mixed density and mixed income residential
* 80 acres for parks, green space, trails, and parkways
* 18 acres for retail/commercial use
- Closest JOBZ Zone on I-35 to the Metro
- Tax Abatement
- Customized Training
-10% commission on business park land sales
- A professional and friendly staff
• *EDA -Seven member, two council members, levy within city.
* Partnership: County HRA uses own levy and does the marketing for the City. A
$12 million investment funded through Real Estate Bonds with deferred principal and
interest. EDA Director and Finance Director one is same. Now hiring Economic
Development Director.
* Norwood -Young America
- City owned 61-acre Tacoma West Industrial Park
- Rail accessibility.
- Next move out from Chaska -Chanhassen
* EDA - 7 members, 2 council members -Industrial development driven by City
Administrator.
* St. Cloud Area Economic Development Partnership -private/public membership
organization. (BioBusiness Alliance and LifeScience Alley)
* St. Cloud Opportunities Inc. -Actual owner of the industrial park along I-94 and
Opportunity Drive.
* St. Cloud l3RA also owns real estate.
d) Local -Monticello.
* I-941ocation.
* Fiber Optics Network -Spring 2009
* Revolving Loan Fund
,1C $t.eo ~s,. g~ 4'T (, S w....,Q a.q ~~~''
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