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05-05-2004 EDA MIN - STRATEGIC PLANECONOMIC DEVELOPMENT STRATEGIC PLAN WORKSESSION HELD AT THE ELK RIVER PUBLIC SAFETY FACILITY EMERGENCY OPERATIONS CENTER WEDNESDAY, MAY 5, 2004 Present: Jeff Gongoll (arrived at 3:30 p.m.), Larty Koenig, Louise Kuester, Paul Motin, Stephanie Klinzing (arrived at 5:00 p.m.), Lang Toth, Jean Lieser, Stewan Wilson, Steve King, Gary Santwire (arrived at 4:45 p.m.), Jim Simpson and Clu-is Carlson Absent: John Dietz, Jim Barthel, Larry Hickman, Cliff Lundberg, Daryl Thompson, Mark Urista, Kara Hillman, Pat Dwyer, Jack Mowry, Tom McNair and Dan Tveite Staff Present: Director of Economic Development Catherine Mehelich, Assis[ant Director of Economic Development Heidi Steinmetz, City Administrator Pat Klaers, Direceor of Planning Michele McPherson, Building & Environmental Administrator Steve Rohlf and Municipal Utilities Manager Bryan Adams Also Present: Jim Brimeyer, The Brimeyer Group, Inc. 1. Review new/modified Strengths Weaknesses Opportunities and Threats (SWOT) Analysis- Facilitator Jim Brimeyex To assure the clarity of the new/modified SWOT analysis developed at the March 31, 2004 Economic Development Strategic Plan Worksession, Mr. Brimeyer asked the group to review the analysis. The 1999 SWOT Analysis was distributed for comparison. 2. The group divided into the same small groups as the March 31, 2004 Worksession. Each small group discussed the 2000-2003 Economic Development Strategic Plan Major Issues & Goals in relation to the new/modified SWOT analysis. Each small group presented a summary of their discussions. The entire group developed a list of ten issues to be discussed as potential new priority issues for an updated Economic Development Strategic Plan. The ten issues were based on the new/modified SWOT analysis and the small group discussions: • Industrial development • Central Business District (CBD) • Transportation • Commercial development • "Branding" Elk River in order to compete (what makes Elk River unique?) • East Hwy 10 development • Business retention • Long-term use of gravel mines • Life cycle housing • Cultural/recreation amenities Economic Development Strategic Plan Worksession May 5, 2004 3. Vote on Priority Issues Page 2 Mr. Brimeyer asked the group to cast individual, anonymous votes on the ten issues based on a scale of 1-6 points (6 points as most important and 1 as least important. Below are the voting results in points, not votes. Issue Points (not votes) Industrial develo ment 84 CBD 50 Trans ortation 48 Commercial develo mem 48 °Branding" Elk River in order to compete what makes Elk River uni e? 31 East H 10 develo ment 22 Business retention 22 Lon -term use of avel mines 16 Life cle housin 4 Cultural/recreation amenities 3 4. Discuss Implementation Model Mr. Brimeyer stated that the top 3 or 4 issues should be considered as priority issues/goals for an updated Economic Development Strategic Plan. The group discussed the implementation model for the top two issues: industrial development and the CBD. Below is a summary of the discussion: I. INDUSTRIAL DEVELOPMENT What is the issue? • Type of development preferred o Manufacturuig (value added, highway) o Increase the tax base o Increase the employment base Whv is this an issue? • No new development is happening • Elk River is not staying competitive Consequences of doing nothing • May lose existing businesses • Continue to have empty business parks Industrial Development Vision Alternatives: • Parks to be filled with "desirable businesses" What makes the businesses desirable? • Job type • Benefits provided • Career opportunities • Retirement plans Economic Development Strategic Plan Worksession May 5, 2004 • Household supporting wages • Diverse services/products • Quality cons[ruxion • Utility costs are reasonable • Land costs are "affordable" Industrial Development Barriers: • Cost of land • Offers from other cities • Reluctant owners (to sell land) • Ability to provide infrastructure (utilities, roads) on a timely basis Industrial Develoument Strateeies • Expand/grow existing businesses • Reduce the cost of development o Land cost o Utilities • Use city-owned land o Make infrastruxure (utilities, roads) available • Have options available o Joint marketing with private landowners o Designate several location options for businesses o Develop a "price point" policy • Develop a more generous incentive program Page 3 • Provide an opportunity for landowners to be part of the development • Consider City ownership of all industrial/business parks, financed over amulti-yeaz period • Develop a program to purchase portions of private industriaVbusiness parks over time -with options to purchase additional land CENTRAL BUSINESS DISTRICT (CBD) What is the issue? • Method to define the boundaries • Determining preferred uses Why is this an issue? • Area is divided - no connection • Lack of an overall plan • "Historical" issues Consequences of doing nothing • Lose ties to the City's past • Lose "historic" struxures • No connexion to the river • Lose "traditional° uses • Minimum opportunity for desirable redevelopment Economic Development Strategic Plan Worksession May 5, 2004 CBD Vision Altemarives: • New developmem/redevelopment o The Bluff Block o Jackson Square o Development north of the tracks o Long range plan for entire CBD o Storefront rehabs o Reaz access to businesses o Orientation toward the river o Pedestrian orientation o Service, boutique uses CBD Barriers: Lack of overall plan in "manageable chunks" May lose some existing businesses Physical separation (tracks, highway) of the azea CBD Strateeies: • Develop long rang plans with "manageable chunks" • Develop list of "preferred" uses o Office o Mixed use o Residential o Specialty retail o Restaurants/bars • Incentive programs developed • Options for connecting the azeas Page 4 It was of the group's consensus that the Economic Development staff discuss and complete the implementation model for the remaining top priority issues to be considered by the EDA as new goals for an updated Economic Development Strategic Plan. The 2000-2003 Plan included 4 major issues and goals. Cl°sme The Economic Development Strategic Plan Worksession ended at 7:45 p.m. Respectfully submitted by, Heidi Steinmetz Assistant Director of Economic Development