3.0 EDSR 07-20-2015 Cit of
ti Request for Action
River
To Item Number
Economic Development Authority 3.0
Agenda Section Meeting Date Prepared by
N/A July 20, 2015 Amanda Othoudt, EDD
Item Description Reviewed by
2016 EDA Budget&Budget Goals Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only.Action is to be taken at the August 17, 2015,EDA meeting.
Background/Discussion
As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding
the goals and objectives,major projects, and other items influencing the EDA budget.
Staff prepared a draft budget to address several of the goals outlined in the strategic plan, downtown plan,
the city's vision worksheet, and recent EDA discussion. In order to meet the requirements of the EDA
Bylaws, the EDA must approve the budget at their August 17, 2015,regular meeting and make
recommendation to the City Council at the September 7,2015,regular meeting.
As drafted,the proposed expenditures are$290,650. Major initiatives include participation in the
Positively Minnesota Program and the Shovel Ready Certification Program through the Department of
Employment&Economic Development (DEED.
The EDA levy options are as follows:
1) 0.01479% -Balanced rate generates $282,650 in revenue and wouldn't add or draw against
reserves.
2) 0.01813%Previous/Maximum rate generates $360,096 in revenue and would add additional
revenue into reserves.
All levy options are applied against the Estimate Market Value obtained from Sherburne County of
$1,986,191,600. In addition to the tax levy,we also calculate interest income of$4,500 and$3,500 transfer
from the HRA for supplies and shared costs.
Financial Impact
None
Attachments
• EDA 2016 Budget Goals
• 2013-2016 EDA/HRA Strategic Plan
• EDA Budget Worksheet
1 / MEiEI er
Template Updated 4/14 NATURE
Division Performance Measures & Goals for 2016
Division: Economic Development/EDA
Completed by: Amanda Othoudt _
Date: July 16, 2015 _
Performance Measure 2014 Actual 2015 Projected 2016 Projected
Conduct 20 BR&E visits 7 _ 12 24
Contact 6 businesses re:microloan 7 6 24
Contact at least 3 Data Centers to 3 3 5
attempt to recruit to Elk River
Obtain positive publicity via at least 3
city newsletters each year 2 3 4
Advertise in at least 3 National
Publications with at least 5000
subscribers 3 3 3
Advertise in at least 2 Global
Publications with at least 5000
subscribers - 2 2
Personally connect with at least 150
new partners 150 150 250
Related Vision Statement
Division Goal Goal/Objective Comments
Pursue purchasing properties for City Vision Statement:Opportunities& EDA Determine utility capacities,work with private land owners,available lots,zoning,etc.
Data Centers;then market sites for Strategic Plan:Business Development Work with County and other city departments to keep the Data Center resource
recruitment packet current.
Market retail,Tap Rooms,&other Mississippi Connections:Priority Project From Marketing Funds,create available property listing then actively recruit.Create a
highly desirable businesses to the specific Tap Room brochure.(In process)
Downtown Area
Promote ED incentive programs and EDA Strategic Plan:Business Development Update brochures,Face Book,Twitter,Press Releases,Business&Trade
available land Magazines,etc.
Maximize&leverage DEED monies EDA Strategic Plan:Business Development Identify new DEED programs and update Business Financial Toolkit Brochure.
as often as appropriate
Maximize&Leverage Initiative EDA Strategic Plan:Business Development Identify new programs and update Business Financial Toolkit Brochure.
Foundation moneis as often as
appropriate
Contact and network directly with City Vision Statement:Opportunities&EDA Strategic recruiting:Attend targeted industry(Data Centers,Manufacturing,Energy,
real-estate developers,and target Strategic Plan:Business Development Medical Device Technology)tradeshows,identify the key decision makers,provide
industry decision makers FAM tours of city,attend site selector conference,coordinate development meetings
with City/County/State.Partner with Positively Minnesota and Sherburne County and
ERMU.
Obtain Shovel Ready Certification City Vision Statement:Opportunities& EDA $3250 for each DEED Certification site.Once certified,DEED will promote our sites
status on North Star,and newly Strategic Plan:Business Development as they attend National&International tradeshows&expos,&state website.
identified Business/Industrial Parks.
Assist in reducing the barriers for FAST Study/Mississippi Connections Establish a wetland bank to facilitate new development where wetlands impede
construction growth;shared responsibility with EDA/Planning/Environmental;fast track approval;
remove redtape
Encourage business growth within EDA Strategic Plan:Business Development Conduct 24 BR&E Visits.Focusing on the larger manufacturing facilities
the commercial/industrial sector,by
creating a sound business
enviomment.
2013— 20162017-2020 EDA/HRA Strategic Plan Final
BUSINESS DEVELOPMENT
Attract new businesses and support existing businesses to increase the city's industrial tax base,
commercial tax base and employment base.
INDUSTRIAL STRATEGIES
> Promote available sites,encourage business retention and expansion to grow existing
light industrial base with business recruitment/attraction techniques
> Diversify economic base to include professional services, corporate campuses,energy-
related companies,and technology businesses
> Review existing programs, resources,and services and recommend improvements to
increase competitive advantage and support goals
> Explore creative economic development collaborations
> Utilize Energy City and its tools to recruit new and assist existing businesses
COMMERCIAL STRATEGIES
> Promote available sites,encourage business retention and expansion to grow existing
commercial base with business recruitment/attraction techniques
> Diversify economic base to include a wide variety of retail and service industries,as well
as additional fine dining opportunities
> Review existing programs, resources, and services and recommend improvements to
increase competitive advantage and support goals
> Explore creative economic development collaborations
> Enhance commercial district through business recruitment and activities
ACTION STEPS
• Complete minimum of one BRE visit a month with participation from EDA/HRA and Council
members(manufacturers and top employers)and distribute Business Finance Toolkit,Available
Sites,Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent
information.
• Promote available sites through exhibits at various expos(minimum 2x/yr.)
• Utilize 1715t FAST implementation plan to create a marketing piece for Nature's Edge Business
Center and an annual redevelopment action plan to monitor progress of implementation
• Partner with ERMU to identify applicable rebates for available city-owned property
1
Approved EDA January 14,2013, HRA January 7, 2013
• Promote applicable incentives through direct mailings(minimum 3x/yr.)
• Promote Elk River to the restaurant industry through website
(www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other
marketing venues
• Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic
development goals through various implementation tasks
• Utilizing economic development publications make contact with businesses looking to expand,
relocate,etc.
• Review Micro Loan Program and recommend improvements to increase competitive advantage
and support goals
• Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology
businesses
• Partner with local schools and manufacturers to hold quarterly meetings to encourage students
to explore a career in manufacturing through plant tours,youth apprenticeship programs,
energy city tours and programs, and job shadowing
• Launch Update a powerful website for the Elk River Economic Development Department and the
Housing and Redevelopment Authority. Provide analytic reports on a quarterly basis.
• Demonstrate support for existing manufacturers and raise awareness regarding their impact on
the community through various promotional activities and tours during Minnesota
Manufacturers Week
• Identify target industries(e.g. data centers, energy-related companies,fine dining
establishmentscraft brewery, manufacturing and medical device, etc.)and create specific
marketing pieces to identify advantages and programs to assist in business recruitment
• Host quarterly Manufacturers'Connection events with local manufacturers to promote financial
incentives, resources and relevant topics to promote business retention and appreciation
• Build a targeted industry and trade media databases and send press releases 6x per year.
• Produce an energy conservation best-practices brochure to provide to businesses
• Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of
the Year
• Partner with Energy City and the Streets Department and continue toto promote proper
disposal of Fats,Oils and Grease through videos,flyers,emails, social media, and other media
• Host and Promote a quarterly business rountable event with local business leaders and
community stakeholders.
• Partner with the Elk River Area Chamber of Commerce to hold annual event to promote
economic development resources and incentives(Juice Up Your Morning, Chamber luncheon,
Money Breakfast, etc.)
• Continued contact and relationship development with Twin City commercial real estate
brokers/developers
2
Approved EDA January 14,2013, HRA January 7,2013
REHABILITATION AND REDEVELOPMENT
Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial
and residential areas to ensure private reinvestment and sustainability.
COMMERICAL/INDUSTRIAL STRATEGIES
➢ Maintain a listing of available commercial/industrial sites
> Promote available sites through various marketing initiatives
> Identify and examine potential areas for revitalization
> Review existing programs, resources,and services and recommend improvements to
increase our competitive advantage and support goals
> Enhance downtown commercial district through business recruitment and people-
generating activities
➢ Develop and implement a blighted properties program for both commercial and
residential properties
ACTION STEPS
• Update windshield survey quarterly and post on website
• Feature available property in quarterly'Energized by Development'electronic newsletter
• Promote www.elkriversites.com on billboard 1x/yr. (changed quarterly)
• Identify target areas for the blighted properties program
• Partner with downtown business association and civic groups to promote existing and explore
new downtown activities(i.e. BNI, Chamber Connections,etc.).
• Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within
the downtown study area
• Create and distribute a survey to businesses to identify recommended improvements to existing
programs, resources and services, in addition to identifying preferred methods of
communication to improve Elk River business climate
• Identify current property owners' and businesses' interest in redevelopment efforts both north
and south of HWY 10 and in 171St Focused Area Study area
• Create a redevelopment policy regarding capitalizing the HRA development fund and identify
parameters for purchasing parcels
• Create and distribute comprehensive business directory to promote downtown Elk River
• Create aUpdate short videos promoting available sites and applicable initiatives to distribute
through social media outlets, constant contact and website
3
Approved EDA January 14, 2013, HRA January 7, 2013
RESIDENTIAL STRATEGIES
➢ Maintain listing of vacant/foreclosed properties
➢ Address housing gaps with Comprehensive Housing Market Study recommendations
➢ Proactively review neighborhoods annually to ensure all home are properly maintained
through the code enforcement process
➢ Seek and promote available programs to improve existing housing stock and incentivize
homeownership thorugh CMHP
➢ Provide educational opportunities regarding foreclosure prevention and housing
assistance programs by developing brochures/pamphlets
ACTION STEPS
• Continue to work with applicable departments and entities to maintain internal foreclosure
tracking spreadsheet
• Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation
brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non-
profits, builders,etc. (minimum 4x/yr.)
• Partner with staff to devise a neighborhood inspection plan to ensure all homes are properly
maintained through the code enforcement process
• Utilize housing intern to research programs available to Elk River residents to improve existing
housing stock and incentivize homeownership
• Partner with North Metro Realtors Association to explore the creation of in house housing
programs(down payment assistance, housing rehab,etc.)
• Partner with applicable non-profits(MNHOC,Tri-CAP,etc.)to hold educational events to
promote foreclosure prevention and housing programs (minimum 2x/yr.)
• Identify aContinue to partner with the CMHP housing organization to fund and support a
selective housing removal and rebuilding program
• Host an annual Realtors' Day to educate realtors about the programs, processes and amenities
offered by the city
4
Approved EDA January 14, 2013, HRA January 7,2013
COMMUNITY BRAND
Utilize community brand strategies to effect necessary changes to strengthen and enhance community
image
STRATEGIES
➢ Continue to implement and enhance marketing plan that reflects the Powered by
Nature brand, identifies desired target market(s),and complements other local efforts
to promote the community internally and externally
> Maintain existing and build new community support for the Powered by Nature brand
> Establish benchmarks for performance measurement
ACTION STEPS
• Work with area businesses and civic organizations to incorporate brand into their marketing
strategies through presentations(minimum 6x/yr.)
• Create PbN logos for area businesses and civic organizations(minimum 6x/yr.)
• Meet with each city department to ensure all documents(staff reports,applications, business
cards, presentations, letterhead, etc.) adhere to brand guidelines as outlined on SharePoint
• Maintain poweredbynature.blog.com site (minimum 3x/wk.)
• Distribute window clings and larger windows signs of the logo
• Distribute brochures explaining the brand to residents to municipal liquor stores,Guardian
Angels, Pullman Place,Sherburne County, local banks,Chamber of Commerce, local hotels, etc.
• Utilize community brand throughout the new Economic Development and citywide website
• Promote the brand, engage residents, and distribute materials at expos(3x per year)and at
events such as Realtors' Day, Leadership Elk River,and Manufacturers Connection
• Create profiles on first-tier business owners in Synchronist Salesforce—a tracking software used
to record information on local businesses and visits
• Launch an online marketing campaign through pay-per-click and keyword advertising
• Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a
search engine optimization analysis.
• Promote Public Art Installation and research opportunities to expand public art within the city.
5
Approved EDA January 14, 2013, HRA January 7,2013
TRANSPORTATION
Advocate and support proactive planning for improvements to the local and area transportation system
in a way that will support existing businesses and complement new economic growth.
STRATEGIES
➢ Advocate regional and local transportation improvements
➢ Encourage transportation improvements as part of redevelopment/development
opportunities
➢ Support efforts to leverage local funds with state/federal resources
ACTION STEPS(submitted by City Engineer)
• Increase contact with legislators for state highway transportation improvements
• Complete low cost/high benefit enhancements to improve traffic flow through the existing
street intersections
• Advocate for the continued use and expansion of Northstar commuter rail service.
• Continue implementation of transportation improvements as detailed in the 1715t Focused Area
Study
• Assure all proposed development improvements are consistent with our local and regional
transportation plans.
• Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the
already spent local dollars for the planning of improvements to these sections.
• Evaluate all available grant opportunities to determine if the local matching amounts are a cost
effective and feasible solution to support our objectives and strategies.
• Promote the Quiet Zone, Northstar Commuter Train and Bike paths.
6
Approved EDA January 14, 2013, HRA January 7,2013
2016-2017 BUDGET DETAIL SHEET
Dept: Economic Development Authority
Acct. Explanation/Detail of Supplies or Services 2013 2014 2015 BUDGET 2016 BUDGET 2017 BUDGET
No. Actual Actual Detail I Total Detail I Total Detail I Total
PERSONAL SERVICES
4101 Regular Pay 60,465 58,534 81,100 84,150 89,350
4103 Part-time Pay 18,210 17,413 12,600 12,600 12,600
4104 PERA 4,364 4,129 6,650 6,600 7,250
4105 FICA 4,494 4,797 5,800 6,000 6,300
4107 Medicare 1,051 1,122 1,350 1,400 1,450
4108 Insurance _ 9,070 7,463 10,450 10,850 11,500
4109 Workers Comp 357 287 450 400 450
4110 Re-employment Comp 377
TOTAL PERSONAL SERVICES 98,011 94,122 118,400 122,000 128,900
SUPPLIES
4201 Office Supplies 2,396 4,756 9,750 7,100 7,100
Office supplies 7,800 2,700 2,700
Computer-Amanda 1,500 1,500 1,500
Computer Software/Licensing(MNCAR,Sketchup,etc.) 450 2,900 2,900
4212 Fuels&Lubes 11 2,100 2,100 2,100
Unleaded gas 2,100 2,100 2,100
TOTAL SUPPLIES 2,396 4,767 11,850 9,200 9,200
OTHER SERVICES&CHARGES
4304 Legal Fees 10,037 9,187 10,000 15,000 15,000
Misc. 10,000 15,000 15,000
4319 Other Professional Services 7,285 28,999 5,000 5,000 5,000
Update Powered by Nature brochures 500 500 500
Powered by Nature sponsorships 2,500 2,500 2,500
Powered by Nature promotional items 2,000 2,000 2,000
4321 Telephone 538 357 1,050 700 700
Long distance 700
iPad data plan(2) 350 700 700
4322 Postage 380 326 2,000 2,000 2,000
Marketing mailings 2,000 2,000 2,000
4331 Conferences/Schools 13,849 8,424 14,800 21,700 21,700
EDAM 3,500 3,500 3,500
NDC/IEDC Training 2,300 2,500 2,500
NDC/IEDC Travel 4,500 4,500 4,500
Hamline Econ Dev.Certificate 2,200 2,200 2,200
LMC 850 850 850
Chamber Events 900 900 900
MREJ 600 600 600
MNCAR 150 150 150
CMMA 750 500 500
MN Banker's Assoc. 750 750 750
Leadership Elk River _ 400 400 400
SLUC 300 300 300
Springsted 150 300 300
Ehlers 200 200
Site Selector Conference 1,700 1,700
Site Selector Conference Travel 1,350 1,350
Misc.training 1,000 1,000 1,000
Mileage adjustment -3,550
7/16/2015
Dept: Economic Development Authority
Acct. Explanation/Detail of Supplies or Services 2013 2014 2015 BUDGET 2016 BUDGET 2017 BUDGET
No. Actual Actual Detail I Total Detail I Total Detail I Total
4349 Advertising/Marketing 48,697 62,255 78,200 72,850 72,850
Community Profiles 1,200 800 800
Advertising(Production&Publication) 12,000 18,300 18,300
Direct Mailings 6,000 3,000 3,000
Business Retention&Expansion Visits 800 800 800
Promo items 9,000 9,000 9,000
Special events 8,000 5,000 5,000
Sponsorships 8,000 8,000 8,000
EDA owned property 7,200 1,500 1,500
Zoom Prospector Application for Website 4,500 2,500 2,500
Trade Shows&Lead Generation 15,000 15,000 15,000
DEED Shovel Ready Certification 6,500 3,250 3,250
EDA Website 5,700 5,700
4359 Publishing 509 357 450 500 500
Public notices,etc 450 500 500
4361 Insurance 200 200 200
Insurance 200 200 200
4433 Dues/Subscriptions 1,784 1,606 2,650 3,700 3,700
EDAM 450 450 450
Chamber 450 450 450
Constant Contact 300 300 300
CMMA 250 250 250
Minneapolis/St.Paul Business Journal 100
MNCAR 400 400 400
IEDC 400 800 800
Misc. 300 300 300
Finance and Commerce 500 500
Rotary 250 250
4440 Miscellaneous 216,814 8,500 3,000 3,000
Initiative Foundation 2,500 3,000 3,000
4th of July donation 6,000
TOTAL OTHER SERVICES&CHARGES 83,079 328,325 122,850 124,650 124,650
TRANSFERS OUT
32,000 34,800 34,800
4720 Transfers 568,000
4721 General Fund 25,000 31,900 32,000 34,800 34,800
TOTAL ECONOMIC DEVELOPMENT AUTHORITY 208,486 1,027,114 285,100 290,650 297,550
7/16/2015