7.0. HRSR 11-01-2004 ITEM # 7.
City of •
Elk
River
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development�j/�
DATE: November 1, 2004
SUBJECT: Consider Adoption of 2004-2007 Economic Development
Strategic Plan
Attachments
• Discussion Notes from the 2004 Strategic Plan Work Sessions
• 2004-2007 Economic Development Strategic Plan
• Background
The Economic Development Strategic Plan provides a framework for the Commissions to
work within and focuses staff energies on those priority areas important to the economic
health of the City. The original Strategic Plan was adopted in May 1997 with participation
from a variety of community leaders. The Strategic Plan was modified in 1999 by the EDA,
HRA and City Council to reflect a reorganization of priority issues
In March and May 2004 the HRA 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,EDA, and EDA subcommittees Incubator
Advisory, Finance, Marketing, and city staff. Discussion notes from the work sessions are
attached.
The attached 2004-2007 Strategic Plan was recently adopted by the EDA at its October
meeting.
2004-2007 Priority Goals and Strategies
Following is a comparison of the 1999 issues and those issues most recently modified by the
committee:
1999 Issues 2004 Issues
1. Industrial Base 1. Industrial Development
2. Business Retention& Growth 2. Central Business District (CBD)
• 3. Marketing Strategy 3. Transportation
4. Develop/Redevelop East Hwy 10 4. Commercial Development
and the Central Business District
2004-2007 Economic Development Strategic Plan
HRA Meeting November 1,2004
Page 2 of 2
Staff will provide a brief presentation of the priority goals and strategies identified in the
attached 2004-2007 Economic Development Strategic Plan. The strategies are the action
steps which allow staff to move forward to complete research on various issues and bring
information and recommendations back to the EDA, HRA and City Council regarding such
issues as appropriate. If there are specific action steps that a majority of the Commissioners
are in disagreement with, then these steps should be removed from the Plan.
Action Requested
Staff recommends that following the HRA's feedback on the modified Plan and its
strategies, that the HRA then consider adoption of the modified 2004-2007 Economic
Development Strategic Plan. Following the HRA's adoption of the Plan the City Council
will be asked to consider adoption of the modified Plan at their upcoming meeting.
•
•
F:\SHRDOC\EDA\STRATPLN\2004 Update\11.1.04 HRA.doc
• City of Elk River
Economic Development
Strategic Plan 2004-2007
May 2004 Group Work Session Notes
PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT
What is the issue?
- Type of development preferred
- Manufacturing (value added,highway)
- How to increase the tax base
- How to increase the employment base
Why an issue?
- Nothing is happening
- Not staying competitive
Consequences of doing nothing:
- May lose existing businesses
- Continue to have empty business parks
• - The debate goes on.....and on....
VISION ALTERNATIVES
Parks are filling in with "desirable businesses"
What makes them desirable?
- Job type
- Benefit program
- Career opportunities
- Retirement plans
- Household supporting wages
- Diverse services/products
- Quality construction
- Utility costs are reasonable
- Land costs are "affordable"
BARRIERS
• Cost of land
• Offers from other cities
• • Reluctant owners (to sell land)
• Ability to provide utilities on a timely basis
• PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT
STRATEGIES
Expand/grow existing businesses
Reduce the cost of development
- Land cost
- Utilities
Use city-owned land
- Make utilities available
Have options available
- Joint marketing with private owners
- Designate several locations for businesses
- Develop a"price point" policy
Develop a more generous incentive program
Provide an opportunity for owners to be part of the development
• Consider City ownership of all parks, financed over a multi-year period
Develop a program to purchase portions of private parks over time—with options to purchase
additional land
•
•
• PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT
What is the issue?
- Method to define the boundaries
- Determining preferred uses
Why is it an issue?
- Area is divided—no connection
- Lack of an overall plan
- "Historical"issues
Consequences of not addressing:
- Lose ties to the City's past
- Lose "historic" structures
- No connection to the river
- Lose "traditional" uses
- Minimum opportunity for desirable redevelopment
VISION/ALTERNATIVE
• New development/redevelopment
The Bluff Block
- Jackson Square
- Development north of the tracks
- Long range plan for entire CBD
Storefront rehabs
Rear access to businesses
Orientation toward the river
Pedestrian orientation
Service, boutique uses
BARRIERS
Lack of overall plan in "manageable chunks"
May lose some existing businesses
Physical separation (tracks, highway) of the area
• PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT
STRATEGIES
Develop long rang plans with "manageable chunks"
Develop list of"preferred" uses
- Office
- Mixed use
- Residential
- Specialty retail
- Restaurants/bars
Incentive programs developed
Options for connecting the areas
•
•
• July 2004 EDA Meeting Notes
PRIORITY ISSUE #3: TRANSPORTATION
What is the issue?
- Increasing amount of traffic causing congestion
- Local and regional connections
- Transit (public)
- Loss of available land for road systems as it becomes developed
Why an issue?
- Congestion at peak times
- Specific areas of poor traffic flow daily
- Lack of jurisdictional control and input on plans
Consequences of doing nothing:
- Development opportunities bypass Elk River
- Customers/residents/businesses perceive traffic as problem in the community and leave Elk
River
- Public safety
- MnDot plans could isolate/limit access to areas (e.g. downtown)
•
VISION ALTERNATIVES 3-5 years
- Better traffic flow
- Proactive planning and guiding of development based on various needs (industrial, commercial,
residential, commuter,public safety, etc)
- Alternative east-west route(s) 10/160
(s) to Hwy
BARRIERS
• Limited availability of undeveloped land
• Cost of infrastructure/operations
• Time to plan/design/build
• Cost of acquisition/relocation of existing properties
• Roads with issues are not necessarily under the City's jurisdiction
• Long term—MnDot Plan for Hwy 10—20 years
•
• PRIORITY ISSUE #3: TRANSPORTATION
STRATEGIES
Local proactive leadership role to generate improvements
• require connections, service roads
• limit development by land use (interim uses to preserve corridors)
• make unpopular improvements to existing roads
Alternative route(s) for East-West connections;partner regionally
No bypasses
Encourage service drives along areas of commercial development (eg East Hwy 10)
Proactive planning in areas with redevelopment/development opportunity, consider transportation
connections of area as part of the plan (eg Arrow Building Center, Cretex and Contour Mold area)
Better accessibility for businesses along Hwy;redevelop accesses
Utilize City's Transportation Plan
IIIEDA role??
Identify transportation planning partners and roles
Council
Planning Dept/Commission
Engineering
EDA—as advocate
(eg oppose bypasses,not in best interest of the city's economic growth)
410
• PRIORITY ISSUE #4: COMMERCIAL DEVELOPMENT
What is the issue?
- Appropriate locations for additional commercial development
- Types of desired commercial development
- No one wants to locate commercial on Hwy 10 (east/west)
- Large retail or retail clusters require substantial sizes of land
Why an issue?
- Community interest in more options
- No land left for development (nearest is gravel mines and East Hwy 10)
Consequences of doing nothing:
- Residents will shop where there are more options i.e. other cities
- Land will develop as residential (less tax base)
- Existing businesses may move to other cities with critical demand
- Development opportunities will bypass Elk River for other communities
VISION ALTERNATIVES
- Identify the desired types and sizes of commercial development
• - Develop planned commercial corridor(s) that provide development/redevelopment
opportunities to guide future inquiries
- A focus on Hwy 10,retain the existing commercial on Hwy 10 and add to compliment the area
- Identify areas for desired commercial to go,what are the barriers to locating there now,how to
get them where we want them
BARRIERS
• Limited availability of undeveloped land
• Redevelopment/relocation costs
• MnDot Transportation Plans (interchanges)
• Timing of market demand and interest
11111
• PRIORITY ISSUE #4: COMMERCIAL DEVELOPMENT
STRATEGIES
Focus area study of the gravel mining area to identify commercial sites.
Identify areas for redevelopment and determine priorities.
Provide incentives to lure desired businesses to locate in areas that the market is not interested in at
this time.
Explore/consider subsidy/incentives for desired uses and areas
Consider for commercial overall or in certain areas
What do other cities do?
Eg Maple Grove redevelopment of gravel mines to retail,was TIF used?
Consider the Chamber to market the areas
Support the commercial areas identified in the Comprehensive Plan
CoRd 33 &Hwy 169
Elk River/Ramsey border
• Be proactive to designate large area for "shopping mall";market when ready for desired use
Like "Arbor Lakes" —should be walkable and integrated
•
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