6. EDSR 04-23-2012Item # 6.
MEMORANDUM
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TO: Economic Development Authority
FROM: Annie Deckert, Director of Economic Development
DATE:. April 23, 2012
SUBJECT: .Executive Director Update
The purpose of this periodic memorandum is to keep the EDA and HRA informed of
various ongoing activities that often go on behind the scenes in the Economic Development
Division. EDA and HRA Commissioners should feel free to bring up any questions or
issues for discussion under the "Other Business".section of the Agenda.
Potential Crystal Distribution- Inc. (CDILpansion
At their .February 21, 2012, meeting, the City Council approved an administrative
subdivision. for lot 1, Block 1, in Northstar Business Park for .the potential expansion of
CDI, located on the parcel immediately south. This subdivision would result in two parcels;
The northernmost of the two, is 7.33 acres, and the other is 4.8 acres. This split will occur
only if CDI moves forward with their proposed expansion.
Since the meeting, CDT has indicated that their plans have slowed down, and that they are
unsure as to when they plan to move forward. Staff will update the EDA as more
information is obtained.
~ortech, Inc.
At their Apri116, 2012, meeting, the City Council approved an ordinance amendment to
rezone the old Maxsun building from PUD to Business Park. Sportech will be moving into
the building to increase their manufacturing, as well as add additional warehouse space.
Future industrial park site identification
Highlighted as a goal in the 2009-2012 Strategic Plan, staff is working to identify future sites
for a potential industrial park. Economic Development staff is working with the
Environmental and Planning Departments on potential wetland banking as well. Once
conversations are complete with property owners regarding this matter, staff will move
forward with discussions regarding potential land acquisition. The properties in question are
land which would be highly desirable for a data center.
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Partnership with Elk River Municipal Utilities
For the past couple of years, staff has partnered with Energy City and ERMU to utilize
Energy City as an economic development tool. The creation of the Energy Efficiency
Rehabilitation Micro Loan Program is a product of that partnership. In addition, staff has
coordinated several meetings with local and metro developers ERMU to educate the
developer community about the advantages of locating data centers in Elk River.
The Bluffs- Granite Shores
James Soderberg of Soderberg Apartment Specialists has met with staff, the Elk River Area
Chamber of Commerce and the Downtown River's Edge Business Association to discuss
plans to purchase The Bluffs building. He plans to finish all units with granite counter tops
and stainless steel appliances within 60 days of closing. He has had discussions with several
interested commercial tenants and plan to rent out all residential units. Recent discussions
with Mr. Soderberg indicate amid-May closing date.
EDA Micro Loans
Staff has met with and provided Micro Loan information to several prospective businesses.
In addition, staff is working closely with ERMU on a potential Energy Efficiency
Rehabilitation Program applicant who is looking to purchase the former Hardee's building.
Main Street Parking Plaza (HRA parking lot/ 716 & 720 Main)
At their March 5 meeting, the HRA moved forward with Landform consultants to design
the parking lot fox the HRA-owned property :downtown, east of Elk River Meats. At their
Apri12 meeting, the HRA approved a concept plan which will close the alley and total. 29 off
street parking spaces. The site. will also include a trash enclosure (replacing the trash
enclosure removed. during. the demolition process), pavers, landscaping, benches and a bike
rack. The concept master plan included recommendations for a business kiosk, monument.
parking sign, recommendations for naming the parking lot, and an enhancement for all
downtown parking signage. The recommendations may be revisited at a later date.
Marketing material
Staff is working to update and redesign our marketing materials to implement our brand.
Project completion is anticipated to be the middle of May.
Economic development website
Outlined as a priority in the brand plan, staff is working with several web designers to obtain
quotes for a new website. A staff committee was formed to interview several website
designers. The group chose CivicPlus. This is an item which has been approved in the 2012
budget for the EDA. Staff anticipates the website to be complete by mid-2012. The city will
begin the redesign of the entire website in 2013.
Greater MSP
Greater MSP is a private-public partnership funded by businesses, institutions, and
government, whose mission is to stimulate economic growth and prosperity, and higher
quality of life for residents in the Metropolitan region.
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Staff works with GreaterMSP on specific site requests and recently attended a meeting with
GreaterMSP and the Minnesota Chamber of Commerce to identify additional ways we can
partner to further economic development in the state.
Recent Inquiries/Prospects
Staff has been working with Sherburne County, Elk River Municipal Utilities and
GreaterMSP to market acounty-owned piece of property for a future data center. We have
also met with a couple potential manufacturers interested in EDA-owned property.
Region 7W Comprehensive Economic Development Strategy (CEDS)
In 2009, staff and a few EDA, HRA Commissioners, and the Mayor participated in public
information meetings to develop economic development strategies for the Region 7W
(Stearns, Benton, Wright, Sherburne Counties). The CEDS analyzes the regional economy
and serves as a guide for establishing regional goals and objectives, devising and
implementing a regional plan of action, and identifying investmentpriorities and funding
sources. A CEDS is required by the US Dept. of Commerce in order to access federal
economic development grants for infrastructure, disaster recovery and some stimulus
funding programs. The CEDS plan was recently completed and submitted fall 2010..
Staff attends periodic meetings to discuss this plan and to learn about potential grants and
programswhich we may be eligible for.
Ta Law
Earlier this year, a brewer taproom license (otherwise known as the. "Surly Bill" and "Minnesota
Pint Law" (Subd. 6,. Section 340A.101) was approved by the MN Legislature. This gives
production breweries such as Surly, Schell's, Summit, etc. the opportunity to sell pints of beer at
their brewery.
The City Council approved a tap room ordinance earlier this year. Discussions between staff
and the site selection firm representing Surly have indicated they are not interested in located
outside of the metro at this time.
Business subsidy reporting
In 2009, the Bank of Elk River was granted an extension to achieve their job and wage goals
as outlined in their 2007 Tax Abatement and Business Subsidy Agreement for the renovation
and expansion of their downtown location, extending their deadline to September of 2011.
In October, The bank requested an additional two-year extension. It was approved by the
City Council, extending their job creation and wage goal deadline date to September of 2013.
Staff continues to complete the mandatory annual reporting to the state for other tax
abatement and business subsidy agreements.
Northstar Commuter Rail
The US Department of Housing and Urban Development received a grant to execute a
market analysis study along the Northstar Corridor. Staff has met with consultants to
provide community information, plans and resources to assist in the study. An open house
revealing the results is anticipated to be held mid-2012.
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Business Retention/Expansion Visits
Staff kicked off our BRE visit schedule in January of 2012. To date, staff and EDA
Commissioners have visited J & J Machine, and we will be visiting Pomeroy Tool and
Contour Mold in April.
Housing Study
At their April meeting, the HRA moved forward with working with Maxfield Research to
complete a housing study. The study is anticipated to be complete mid-summer.
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