4.1. SR 05-19-1997ITEM 4.1.
ky of
iver
TO:
ROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Paul T. Steinman, Director of Economic
Development
May 12, 1997
Presentation of the Economic
Development Strategic Plan
II.
PURPOSE OF MEMO
The purpose of this memo is to present for final adoption, the
Economic Development Strategic Plan.
OVERVIEW
The Strategic Planning Task Force was selected in the fall of 1996 to
put together the city's first Economic Development Strategic Plan. The
Task Force utilized the volunteers represented by the following groups.
· Mayor/City Council
· EDA
· HRA
· Chamber of Commerce
· Utilities Commission
· Downtown Representatives
· Local Business Representatives
The Task Force also called upon the special areas of expertise
represented by the EDA for input on issues related to the city's
industrial base and the HRA for input on issues related to downtown
development/redevelopment.
The strategic planning process was facilitated by Jim Brimeyer, The
Brimeyer Group, a professional consultant with a high level of
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
III.
expertise in this area. Mr. Brimeyer led the Task Force through the
process and helped develop the four major issues which affect the
economic growth of the City of Elk River. These major issues and their
supporting goals, in order of priority, are as follows:
Issue
Issue
Issue
Issue
- Industrial Base
Goal - Attract new businesses to increase the city's
industrial base.
- Business Retention and Growth
Goal - Retain and grow the city's existing
business/industry.
- East Highway 10 development/redevelopment
Goal - Redevelop the east Highway 10 corridor
- Downtown Redevelopment
Goal - Attract reinvestment in the Elk River central
business district.
Mr. Brimeyer then led the Task Force through the process of
identifying specific action items related to addressing the major issues
as identified. These action items make up the body of the Economic
Development Strategic Plan as included in this packet and will be
undertaken and implemented over the next several years. A few of the
action items are intended to direct the city's economic development
efforts in the longer term, but are included in this plan to allow for
appropriate future planning.
A worksession was held in April wherein which all affected groups
were asked to represent themselves and provide input on the plan.
Several individuals expressed support for the plan and one individual
questioned the Task Forces intent regarding references made to "City
purchase of property" within the plan. See attached letter. The
Council will hkely be asked by one of the property owners within the
area identified for possible rezoning, to clarify its intent regarding this
reference.
There were no other pubhc comments received since the worksession
regarding the Strategic Plan, and no changes have been made to the
document since that time.
PRIMARY ISSUES TO CONSIDER
There are two primary issues to consider and discuss prior to Council
adoption of the Economic Development Strategic Plan. These issues
are as follows:
1.) What are the major initiatives which will be undertaken
within the Strategic Plan?
Staff foresees the following major action items being undertaken
upon adoption of the Strategic Plan:
· Priority #1 - Industrial Base
0 Rezoning of the eight areas identified to allow
for future industrial growth. These rezonings
would possibly occur within the initial six
months of adoption of the Strategic Plan.
~ Negotiate joint development agreements with
West Business Park property owners. These
joint development agreements will address
assessment issues, land prices, and cooperative
marketing of these Business Park properties.
0 Bring forward to the Mayor/City Council and
EDA the question of whether to proceed with
such joint development agreements or to possibly
proceed with the city's purchase of a portion of
West Business Park property.
0 Implement steps to proceed with construction of
a new transportation corridor connecting County
Roads 12/13 and Highway 10. This
transportation corridor, as planned, is vital to
the creation of additional industrial land
opportunities in the eastern area.
0 Negotiate joint development agreements on
property in this eastern area and bring forward
to the Mayor/City Council and EDA the question
of whether to proceed with such joint
development agreements or possibly pursue the
city's purchase of industrial properties in the
eastern area.
· Priority #2 - Business Retention and Growth
<) Establish the "Business Incubator Program" to
support the growth of job intensive and high tech
businesses.
0 Maintain communication with existing
businesses through various methods including
surveys and general contact.
~ Use city resources to provide expansion
opportunities not only for new business, but for
existing businesses.
~) Expand the micro loan fund guidelines to assure
that existing businesses are considered for high
priority ehgibility.
~ Work closely with the Energy City program to
support the growth of energy related industry.
Priority #3 - East Highway 10 Development/
Redevelopment
~ Identify and prioritize the east Highway 10
redevelopment areas, and estabhsh a plan to
redevelop and market these areas.
0 Estabhsh a long term design and land use plan
including a uniform design theme for the overall
east Highway 10 area.
Priority #4 - Downtown Redevelopment
~ Utilize new resources or existing plans to
complete a focus study which will identify
physical elements of the CBD which may be
improved to provide a more uniform appearance
and cohesiveness to the CBD.
0 Implement the results of the focus study through
the use of additional HRA and private financing
programs which may provide incentives to
property owners.
~ Complete a market study of the CBD which will,
in part, help to identify viable business
opportunities for this area, and implement a
plan to attract these identified businesses.
0 Implement a positive method for sharing
information between the Chamber, Rivers Edge,
and CBD property owners regarding issues
relevant to the economic viability of the CBD.
0 Identify and prioritize redevelopment areas
within the CBD, and implement a plan to
redevelop and market these prioritized areas.
2.)
What will be the overall effect of Council adoption of the
Economic Development Strategic Plan?
City Council adoption of the Strategic Plan will indicate general
consensus on the direction of the activities of the Economic
Development Department and related boards and commissions
over the next three year period, at which time the Plan will be
reviewed, modified, and updated. It will also indicate consensus
that the following substantial issues are to be researched and
brought forward by staff as a result of implementation of the
Strategic Plan. These substantial initiatives are as follows:
<> The rezoning of eight areas indicated on the attached
map from their current classification to one which
would be appropriate for Business Park and]or
industrial development.
<> The potential purchase of Business Park and]or
industrial property by the city, and a commitment of
funds to achieve such purchase.
~ Pursuing construction of the new transportation
corridor, including utilities, between County Roads
12/13 and Highway 10.
<> Support of the EDA/HRA's actions to undertake the
following activities:
* Identification/prioritization/marketing of
redevelopment areas in the east Highway 10
corridor and central business district.
* Continued financial commitment to the Business
Incubator project.
* Completion of a focus study and market study in
the central business district to identify physical
elements and potential viable business uses.
Council adoption of the Economic Development Strategic Plan will
provide direction to staff to research the initiatives as described above
and recommend actions to the responsible boards, commissions, and
the City Council.
CONCLUSION
In conclusion, final adoption of the Economic Development Strategic
Plan will set in motion an effort to take advantage of all positive
aspects of economic growth which may occur in the foreseeable future.
The Strategic Plan provides clear and concise direction to the
Economic Development Department, EDA, HRA, City Council, and
business/residential community on our approach to shaping economic
growth well into the next century. Adoption and implementation of
the Strategic Plan will help assure the residential and business
community that their investment in Elk River will provide a positive
return.
V. RECOMMENDATION
Staff recommends the City Council adopt the Economic Development
Strategic Plan as presented.
VI. A TTA CHMENTS
· Letter from Kathy and Doris Specht's Attorney
· Map identifying eight potential new Business Park and/or
industrial areas
· Economic Development Strategic Plan
\\elkriver\sys\shrdoc\edaXstratpln\spprestn.doc
April 22, 1997
Thomas E. Casey
Attorney at Law
2854 Cambridge Lane
Mound, Minnesota 55364
(612) 472-1099
Fax: (612~ 472-4771
INFOIUAATION
Paul T. Steinman
Director of Economic Development
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
RE: Draft Economic Development Strategic Plan
Dear Mr. Steinman,
In behalf of my clients, Kathy and Doris Specht, I wish to
thank you and the Strategic Planning Task Force for answering
my questions at the Task Force meeting last evening. The
answers are the following:
1. Written comments about the Draft Economic Development
Strategic Plan will be allowed up to May 19, 1997;
2. The City Council will also hold a public hearing on May
19, 1997 to allow the opportunity for oral comments; and
3. Before release for public comment, the Draft Economic
Development Strategic Plan will be amended to clarify that
industrial property will be obtained from willinq sellers
only. No condemnation proceedinqs will be initiated. I
suggest that the language in Priority #1, Phase II (10th
paragraph) be amended to read, "City Council and EDA will
determine whether to proceed with a Joint Development
Agreement or city purchase of property from willing
sellers. No condemnation proceedings will be initiated."
Please send me a copy of the amended Plan at your earliest
convenience.
Of course, my clients intend to submit other comments and
questions during the planning process.
Thank you again for your cooperation.
Thomas E. Casey /
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City of Elk River
·
Economic
Development
Strategic Plan
Adopted by City Council action on
ELK RIVER
",4 historic river community serving as a
regional center with a favorable location
near the Twin Cities metropolitan area"
Our mission is to actively participate in economic
development by utilizing available resources to
leverage viable and healthy investments in our
community. Such investments will create diverse job
opportunities as a result of a stable and growing
business and industrial base. We will strive to provide
quality services, maintain a favorable tax rate, supply
full-cycle housing options for our residents, and foster
an environment that will result in substantial growth of
our local economy.
Organizational Chart
ECONOMIC DEVELOPMENT STRATEGIC PLAN
Major Issues and Goals
Industrial Base
· Attract new businesses to increase the
city's industrial base
Business Retention and Growth
. Retain and grow the city's existing
business/ind ustry
East Hwy. 10
Development/Redevelopment
· Redevelop the East Hwy. 10 corridor
Downtown Redevelopment
· Attract reinvestment in the Elk River Central
Business District
Priority # 1
Industrial Base
Attract new businesses to increase the city's industrial
base
· ~ Phase I - West Elk River Business Park
,/' Modify zoning north of County Road 30 in the West Business Park
from R'I C to BP
,F Update/maintain an inventory of property owners in the West
Business Park
,F Outline the parameters of a "Joint Development ^greement" for
West Business Park property owners which will address
assessment issues, land prices, and cooperative marketing of
properties to encourage development of those properties
,/' Negotiate land prices in the West Business Park and research
funding options for potential city purchase
,/' City Council and EDA to determine whether to proceed with a Joint
Development ^greement or city purchase of property - show
financial options
,F Enter into a Joint Development Agreement or complete acquisition
of the subject properties
,/' Complete conceptual platting of properties for use as a marketing
tool
,/' Modify current marketing and advertising program to include
additional properties
,F' Market the properties to industrial users
Industrial Base - Continued
Phase II - Industrial areas east along the newly proposed
transportation corridor and County Roads 12/13, east Highway
10, north Highway 169, and other parcels
~' Accept a concept proposal for a new transportation corridor
between County Roads 12 and 13 proceeding south to connect
with Highway 10
~' Identify appropriate industrial sites along this new transportation
corridor
,/' Identify appropriate industrial sites in other areas lying within the
Urban Service Boundary
,/' Identify appropriate industrial sites lying outside the Urban Service
Boundary along east Highway 10
,/' Undertake rezoning of these industrial sites
,/' Establish a timetable for construction of the proposed
transportation corridor and other public improvements in this area
,/' Complete an inventory of property owners within the newly
identified industrial areas
~' Outline the parameters of a "Joint Development Agreement" with
these property owners which will address assessment issues, land
prices, and cooperative marketing of properties to encourage
industrial development
· f Negotiate land prices and research funding options for potential city
purchase
~' City Council and EDA to determine whether to proceed with a Joint
Development Agreement or city purchase of properties
,/' Complete conceptual platting of properties for use as a marketing
tool
,/' Modify current marketing and advertising program to include these
newly identified industrial areas
~' Market the properties to industrial users
Industrial Base - Continued
Phase III - Other Industrial Areas - Gravel Mining Site ,f Identify appropriate industrial sites/areas currently being mined
¢' Modify underlying land use if determined appropriate in anticipation
of future rezoning to Industrial or Business Park
¢' Work with property owners to establish a timetable for availability of
these industrial sites
¢' Work with property owners to encourage consistent and planned
availability of these industrial sites over the next 7-15 year period
Industrial Base - Continued
Programs and Incentives
,f Support the use of Tax Increment Financing (TIF) as a tool to retain
and attract industrial businesses
V' Modify the TIF policy to allow maximum flexibility and to guide the
city's appropriate use of this tool
~' Support Sherburne County's effort to establish a revolving loan
fund, and other resources, for economic development
V' Encourage Elk River Municipal Utilities to establish a dedicated
revolving loan fund for economic development and to provide a
competitive incentive electric rate for qualified industrial businesses
V' Modify the Micro Loan policy to allow maximum flexibility for use as
an incentive to encourage industrial business growth
V' Research opportunities for using the Internet to identify industrial
prospects
V' Update the community profile and demographic information
annually
V' Maintain an inventory of available buildings for manufacturing and
other industrial users
V' Plan and coordinate a marketing event for industrial realtors and
brokers, developers, and prospects
· /' Establish a policy to guide the use of the city's development fund in
a manner which will support the growth of the city's industrial and
business base
~' Work with local banks to establish a cooperative public/private
economic development financing program
Priority #2
Business Retention and Growth
Retain and Grow the City's Existing Business and
Industry
,/' Coordinate the efforts of"Joint Development Agreements" and/or
the city purchase of land in order to provide expansion
opportunities for EXISTING businesses
,/' Maintain consistent contact with existing businesses through the
use of letters and surveys
V' Initiate a "Business Incubator" program to support the location of
high tech and job intensive business growth within Elk River
V' Use available financing tools to leverage private investment in
order to retain existing businesses and encourage growth
V' Improve the perception and visibility of the Economic Development
department's business retention efforts through the use of the city
newsletter
,/' Work with the Department of Trade and Economic Development,
Small Business Administration, Central Minnesota Initiative Fund,
and other resources to increase awareness of existing programs
which provide support for business expansion and growth
,/' Expand the Micro Loan program to assure that existing businesses
qualify as a high priority consideration
,/ Examine and research the implementation of new programs which
focus on business retention
V' Work with the Sherburne County economic development office to
address the issue of labor force availability
Business Retention and Growth
Continued
Upon completion, distribute the results of the central business
district Market Study so that it can be used to enhance the growth
of existing businesses
Use the Energy City program as a marketing tool to support the
growth of energy related industry
Develop a cooperative marketing plan with Energy City and
incorporate with the current marketing efforts to target energy
related business growth
Coordinate the business retention survey efforts to establish a
baseline of current employment within Elk River's currently existing
energy related businesses
Coordinate an event through Energy City with Energy Alley
member companies to market Elk River's growth potential in the
energy industry
Priority #3
East Hwy. 10
Deve lopment/Re development
Redevelop the East Highway 10 Corridor
d' Establish the criteria for identification of redevelopment areas within
and outside the Urban Service Boundary along east Highway 10
V' Identify and prioritize these east Highway 10 redevelopment areas
d' Establish a plan to redevelop and market each of these prioritized
areas coordinating efforts with the proposed transportation corridor
connecting County Roads 12/13 and Highway 10
,/ Inventory property owners within these redevelopment areas and
discuss possible "Joint Development Agreements", and other
cooperative efforts which could be undertaken to aid in
development of these areas
,/ Establish a long term design and land use plan which might include
establishing a uniform design theme for the overall area utilizing
some of the elements of the central business district Focus Study
(when completed)
Priority #4
Downtown Redevelopment
Attract Reinvestment in the Elk River Central Business
District (CBD)
~ Overall CBD Design
~ Identify the criteria and scope of a Focus Study of the physical
elements of the CBD, includin§ elements of the riverwalk concept
~ Bring in an outside consultant, if determined necessary, to
complete the Focus Study within the scope identified
,~ Examine criteria for additional HRA programs which may provide
incentives to property owners to implement the results of such a
Focus Study i.e., signage improvement program, CBD marketing
program, partnerships with local banks, building rehabilitation
program
,f Review the zoning and land use plan for the CBD as part of a
Focus Study to determine if changes are appropriate
Downtown Redevelopment -
Continued
Redevelopment Sites
,f Outline the criteria which will be used to identify redevelopment
sites within the CBD
¢' Undertake the identification and prioritization of these
redevelopment sites
¢' Implement a redevelopment and marketing plan for each of the
prioritized sites
Downtown Redevelopment -
Continued
Finance and Marketing
~' Outline the criteria and scope of a Market Study which will, in part,
help to identify viable business opportunities for the CBD
~' Bring in an outside consultant, if determined necessary, to
complete the Market Study within the scope identified
,f Distribute the results of the Market Study to potential developers to
attract specific businesses to the CBD
,f Support the use of available financing tools such as TIF to aid in
redevelopment of these identified sites
¥ Utilize the Internet to market and advertise the CBD to specific
retail and other business uses which are to be identified within the
Market Study
~' Partner with financial institutions to establish programs, if
necessary and appropriate, to implement action steps based upon
results of the Focus Study and Market Study
¥ Create a positive method for ongoing communication with the
Chamber of Commerce, Rivers Edge Downtown Development
Corporation, and all CBD property owners regarding relevant
issues within the CBD
,f Support all groups efforts to coordinate retail promotions within the
CBD
,f Complete the redevelopment project at the corner of King Avenue
and Main Street
,f Work with CBD businesses to address parking needs and issues