6.0. HRSR 06-30-2004 ITEM # 6.
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
CC: & Redevelopment Authority
Mayor & City Council
FROM: Catherine Mehelich, Director of Economic Development/
DATE: June 14, 2004
SUBJECT: Economic Development Strategic Plan 2004 Update
In March and May 2004 the EDA participated in two work session discussions for the Economic
Development Strategic Plan Update. Jim Brimeyer facilitated the work sessions. Additional
participants included the City Council, HRA, and EDA subcommittees Incubator Advisory,
• Finance, Marketing, and city staff.
The group identified the following 2004-2007 priority issues in order of importance:
• Industrial Development
• Central Business District (CBD)
• Transportation
• Commercial Development
Interestingly, the 2000-2003 Strategic Plan included the following priority issues:
• Industrial Base
• Business Retention and Growth
• Marketing Strategy
• Develop/Redevelop East Highway 10 and the CBD
The group had healthy discussions about the Industrial Development strategies and Central
Business District strategies. Staff will draft strategies for the remaining two issues;
Transportation and Commercial Development. The EDA will have an opportunity to review the
strategies prior to staff's drafting of an action plan. Following is a timetable for review and
adoption of the Economic Development Strategic Plan:
• May June Staff drafts Transportation and Commercial Development strategies
• • July EDA reviews strategies and provides feedback for staff
• July Staff drafts action steps based on the strategies and completes draft Plan
• August-Sept. EDA, Council and HRA considers adopting the 2004-2007 Strategic Plan
ECONOMIC DEVELOPMENT STRATEGIC PLAN WORKSESSION
HELD AT THE ELK RIVER PUBLIC SAFETY FACILITY
EMERGENCY OPERATIONS CENTER
WEDNESDAY, MARCH 3I, 2004
Present: Jeff Gongoll,Larry Koenig,Louise Kuester,Dan Tveite, Paul Motin,Pat
Dwyer, Stephanie Klinzing,Larry Toth,Jean Lieser, Stewart Wilson,Jack
Mowry,Tom McNair, Steve King and Gary Santwire
Absent: John Dietz,Jim Barthel,Larry Hickman, Chris Carlson, Cliff Lundberg,Jim
Simpson, Daryl Thompson,Mark Urista and Kara Hillman
Staff Present: Director of Economic Development Catherine Mehelich,Assistant
Director of Economic Development Heidi Steinmetz, City Administrator
Pat Klaers,Director of Planning Michele McPherson,
Building&Environmental Administrator Steve Rohlf and Municipal
Utilities Manager Bryan Adams
Others Present: Jim Brimeyer,The Brimeyer Group,Inc.
Dick Gongoll
1. Expectations
Facilitator Jim Brimeyer asked those present to provide input regarding their expectations of
the Economic Development Strategic Plan update process. The following items were
expressed:
• Ten-year economic development plan
• Improved competitive strategy to provide tax base growth
• More manufacturing jobs
• Planning process to be informative
• City not developed by market demand but by strategic planning
• Gravel pit area utilized for industrial development in the future
• Energy City incentives used to attract business
• TIF monitoring
• Action steps in updated plan
• The community's "buy in" to the plan
2. Overview of Strategic Planning Process — Facilitator Jim Brimeyer
Mr. Brimeyer provided an overview of the strategic planning process, a Strengths,
Weaknesses, Opportunities and Threats (SWOT) analysis and the components of a typical
mission statement. Those present provided the following items as potential components to
a revised Elk River economic development mission statement:
•
Economic Development Strategic Plan Worksession Page 2
March 31,2004
10
• A river community (the Stillwater model was discussed)
• Historic community including an identifiable downtown
• A regional center/hub for shopping and recreation
• Natural resources
• "Live,work,play" environment
• Favorable location,which is accessible, convenient and growing
• Elk River is Energy City
3. Presentation — Director of Economic Development Catherine Mehelich
Ms. Mehelich provided a 2000-2003 Economic Development Strategic Plan status report,
including a checklist of actions steps completed to date.
Discussion occurred regarding industrial land prices in Elk River,including the issue of city-
owned industrial land.
4. Small Groups
Those present were divided into small groups and asked to answer the following two
questions:
• Is the Economic Development Mission Statement still valid?
• Is the current SWOT analysis up-to-date?
The small group discussions were recorded and compiled into the following comprehensive
list of potential revisions to the 1999 SWOT analysis:
Strengths
Add Delete
• Commercial development • Metro phone
• Available labor • Spec building
• Guardian Angels (Senior Program) • Update Comp. Plan
• Housing alternatives • Tax rate
• Business community(banking) • UPA
• Recreation facilities • Boys/Girls Club
• Youth organizations • Youth Emporium
• Arts community • Source of construction materials
• Northstar corridor • Sewer capacity
• Seat of growing county • Land prices/availability
• Seat of School District • Funding for employee training
• Metropolitan Council policies do not affect us
S
Economic Development Strategic Plan Worksession Page 3
March 31,2004
•
Weaknesses
Add Delete
• Need more jobs —livable wage • Lack of marketing plan
• Entertainment opportunities • Lack of skills training
• Underdeveloped industrial base • Commuter population
• Traffic (internal/regional) congestion • Labor availability
• No Community Center • Community gathering place
• Lack of commercial land available—zoned • Meeting facilities
appropriately
• Lack of defined policy for funding city projects
• Cohesive planning(Council,EDA,HRA, City
Departments)
Opportunities
Add Delete
• YMCA possibility • Sports Federation Complex
• Downtown Development interest • Youth organizations
• Growth rate • 101 completion
• Commercial/Retail • Reputation of Minnesota (technical,
education)
• Proximity to higher education • Society work habits (commuter)
• Highway system—Mn/DOT Plan • Met Council policies
• City ownership of land • Past year's growth
• Growth in adjacent cities/townships • Otsego growth
• 101 expansion • Population shift to rural
• Gravel industry land uses • Adjacent city/township growth
• • Energy City designation
Threats
Add Delete
• Need Comprehensive Plan update • Building location
• Power line expansion • Inflation
• Fuel prices (energy) • Fragmented school districts
• The economy • Excess retail
• Adjacent retail • Unmanaged growth outside the city
• Higher land taxes • Landfill in gravel pits
• Deregulation
• County attitude
• Utility personal property tax
• Wild,scenic regulations
Economic Development Strategic Plan Worksession Page 4
March 31,2004
•
5. Review Major Issues & Goals
Based on the updated SWOT analysis, each small group was asked to review/modify the
2000-2003 Economic Development Strategic Plan Major Issues & Goals. This task was in
preparation for the vote on priority issues that will take place during the second worksession.
6. Closing
The Economic Development Strategic Plan Worksession ended at 5:00 p.m.
Respectfully submitted by,
Heidi Steinmetz
Assistant Director of Economic Development
S
II
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• ECONOMIC 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.),Larry Koenig,Louise Kuester,Paul
Motin, Stephanie Klinzing(arrived at 5:00 p.m.),Larry Toth,Jean Lieser,
Stewart Wilson,Steve King, Gary Santwire (arrived at 4:45 p.m.),Jim
Simpson and Chris 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,Assistant
Director of Economic Development Heidi Steinmetz, City Administrator
Pat Klaers,Director 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 Brimeyer
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. Develop issues in small groups by reviewing the following: major issues and goals from
2000-2003 plan. 2000-2003 plan status report and new/modified issues
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 Page 2
May 5,2004
• 3. Vote on Priority Issues
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 development 84
CBD 50
Transportation 48
Commercial development 48
"Branding"Elk River in order to compete 31
(what makes Elk River unique?)
East Hwy 10 development 22
Business retention 22
Long-term use of gravel mines 16
Life cycle housing 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 Manufacturing(value added,highway)
o Increase the tax base
o Increase the employment base
Why 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 tilled with"desirable businesses"...
What makes the businesses desirable?
• Job type
• • Benefits provided
• Career opportunities
• Retirement plans
Economic Development Strategic Plan Worksession Page 3
May 3,2004
• • Household supporting wages
• Diverse services/products
• Quality construction
• 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 Development Strategies:
• Expand/grow existing businesses
• Reduce the cost of development
o Land cost
o Utilities
• Use city-owned land
o Make infrastructure (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
• Provide an opportunity for landowners to be part of the development
• Consider City ownership of all industrial/business parks, financed over a multi-year
period
• Develop a program to purchase portions of private industrial/business 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" structures
• No connection to the river
• Lose "traditional" uses
• Minimum opportunity for desirable redevelopment
Economic Development Strategic Plan Worksession Page 4
May 5,2004
CBD Vision Alternatives:
• New development/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 Rear 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 area
CBD Strategies:
• 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 areas
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.
5. Closing
The Economic Development Strategic Plan Worksession ended at 7:45 p.m.
Respectfully submitted by,
Heidi Steinmetz
Assistant Director of Economic Development
•