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6.0. HRSR 11-25-1996 ITEM 6. Ah ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY • MEMORANDUM TO Housing and Redevelopment Authority p<)_ _______FROM: Paul T. Steinman, Director of Economic Development DATE: November 20, 1996 SUBJECT. Update on Strategic Planning Process The purpose of this memo is to provide an update to the Housing and Redevelopment Authority on the strategic planning process. Attached to this memo is an outline of the strategic planning process to this point, including attachments which detail a number of the various activities undertaken by the Strategic Planning Task Force. • If you have any questions on this information prior to the meeting, please feel free to contact me at 441-4905. \\elkriver\sys\shrdoc\council\strpinup.doc • P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment • Economic Development Strategic Planning Presentation Summary I. The process of economic development strategic planning began in October, 1996, with a group of approximately 16 citizen participants representing numerous parties involved in economic development in the City of Elk River. The process is being facilitated by Mr. Jim Brimeyer and began with the presentation of several simple questions for the purpose of framing the strategic planning process: • Who are we? • What are the basic social and political needs we exist to fill? • What do we want to do to recognize and respond to these needs? • What should be our response to our stakeholders? • What is our philosophy and core values? • What makes us distinctive or unique? II. Upon completion of this activity, the Task Force proceeded to undertake a SWOT analysis (strength, weaknesses, opportunities, threats). Strengths and Weaknesses are the internal resources, forces, • and directions that shape the organization. Conversely, Opportunities and Threats are forces which are occurring or are expected to occur in the organizations external environment. III. At its next meeting, the Strategic Planning Task Force began to discuss the central element of any organizational strategic planning process - the Mission Statement. The Mission Statement represents the basic values and philosophies which constitute the mission of a governmental organization. This mission shapes the broad directions of the organization and confirms the success of its policies and programs. IV. Utilizing the SWOT analysis, the Task Force proceeded with identification of,strategic economic development issues. Approximately 26 major issues were identified. Utilizing the nominal group technique, the Task Force prioritized each of these major issues. The four issues in order of priority are as follows: 1. Industrial/Commercial Base 2. Internal Business Retention/Growth 3. East Highway 10 - Development/Redevelopment 4. Downtown Redevelopment V. The purpose of this current step in the process is to gather input from • the community's "stakeholders", as listed below, to assure the Task Force has considered all of the significant factors related to economic development in the City of Elk River. At this time the Task Force is interested in obtaining input on the information and discussions which have occurred to this point. Input will be solicited from the following groups: • City Council • Economic Development Authority • Housing and Redevelopment Authority • Utilities Commission • Rivers Edge Downtown Development Corporation • Chamber of Commerce Board of Directors VI. The remainder of the strategic planning process includes completing a specific action plan for each of the four final prioritized economic development issues. Each of the four final issues will be identified with a goal, and specific steps which will be taken in order to • accomplish the goal and address the issue. Your Task Force representative will recognize all input provided at this time and bring that input back to the Strategic Planning Task Force for discussion and consideration. We look to conclude the strategic planning process prior to the end of 1996 and begin implementation of the plan in 1997. Attached is the following information: • List of Strategic Planning Task Force representatives • SWOT Analysis • Draft Mission Statement • 26 Major Economic Development Issues as Identified by the Task Force • STRATEGIC PLANNING TASK FORCE • Jeff Gongoll - EDA Dick Gongoll - Bank 13900 Riverview Drive First National Bank Elk River Ph: 428-4466 (w) 729 Main Street Ph: 441-2200 (w) Jim Simpson - Bank Rich Duggan - Chamber Bank of Elk River Marketech Inc 630 Main Street 18940 York Street Ph: 441-1000 (w) Ph: 441-8664 (w) Jackie Schuelein - Chamber Tom Bender - EDA Chamber of Commerce 12516 Ridgewood Dr 509 Highway 10 Ph: 441-2121 (w) Ph: 441-3110 (w) Duane Kropuenske - HRA Larry Farber - Council First National Bank 19404 Norfolk Ave NW 729 Main Street Ph: 572-3636 (w) Ph: 241-3609 (w) George Zabee - Utilities Hank Duitsman - Mayor 411 329 Morton Ave NW 12354 Ridgewood Dr Ph: 441-1443 (h) Ph: 540-3520 (w) Paul Ammerman- Chamber Recording Secretary P.O. Box 800 Star News Ph: 241-2249(w) Citizen STAFF: Paul Steinman, Director of Economic Development 441-4905 441-7425 Fax Pat Klaers, City Administrator 441-4907 441-7425 Fax Steve Ach, City Planner 441-4902 441-7425 Fax Bryan Adams, General Manager Elk River Utilities 441-2020 441-8099 Fax FACILITATOR: Jim Brimeyer, Brimeyer Group 945-0246 • 904 Main Street Suite 205 945-0102 Fax Hopkins, MN 55343 s:\eda\meetings\spdist.doc SWOT ANALYSIS Strengths -UPA -location -committed progressive leadership -strong city government (well-managed) -source for construction materials -sense of community, identity -sense of volunteerism -natural resources (river,woods, rural) -schools -current growth rate -destination shopping -non-metro metro -downtown -highways -sewer capacity -land availability and prices -affordable housing (full cycle) -recreational facility (Mn Sports Federation)? -current tax rate -metro phone -updated comprehensive plan -funding for education-employment transition • -energy city designation Weaknesses -lack of industrial land with water and sewer available -train movement (55 per day) -fragmented downtown -lack of public transportation (bus or cabs) -youth activities -perception of Elk River location (identification with St. Cloud) -no spec buildings available for industrial -lack of focus- no strategy -lack of skills training -commuter population -labor availability Opportunities -tourism -energy city -incubator industry -Mn Sports Federation sports complex -restaurants, hotels -101 completion -reputation of Minnesota (technical, educational) -natural resource amenities • -society work habits -commuters (reverse) -identify with metro area (airport, highways) -population shift -met council policies • -funding sources for business (Initiative Funding, Anoka County) -river development Threats -Met Council MUSA line -incentives from other jurisdictions (cities,states) -inflation -building locations -fragmented school district -unmanaged growth-City Council -Excess retail -utility companies/personal property tax issue -landfills in gravel pits -power lines -electric deregulation -county attitude MAJOR ECONCOMIC DEVELOPMENT ISSUES AS IDENTIFIED BY THE STRATEGIC PLANNING TASK FORCE 1. Develop political leadership 2. Develop realistic/achievable goals 3. Capitalize on Energy City potential • 4. Increase industrial base (utility extension plan, land designation and purchase) 5. Implement incubator plan 6. Strong public/private coordination 7. Priorities/focus on economic development 8. Educate/communicate the citizens 9. Promote community events to foster sense of community 10. Redevelopment of downtown- use river as amenity 11. Develop river corridor through community 12. Determine school funding priorities 13. East Highway 10-development/redevelopment 14. Establish finance options for development 15. Explore local transit system (revised system) 16. Define, manage commercial expansion 17. Develop "how can we help" attitude 18. Market Elk River as part of metro area 19. Develop internal highway system 20. Develop new specialty area (hotels, restaurants, etc.) 21. Build community center (make decision) 22. How can we take advantage of mining industry 23. Encourage internal business retention/growth 24. Develop external focused marketing strategy 25. Improve cooperation/coordination with school district and county 26. Create quality jobs 411 stratpin\pressumm.doc DRAFT • MISSION STATEMENT The City of Elk River is an historic river community serving as a regional center and strategically located in the Twin Cities Metropolitan area. The community takes pride in providing quality services and maintaining a favorable tax rate. We promote an environment that results in the growth of industry and businesses and provides job opportunities and housing options for all of our residents. It is our mission to actively participate in the marketplace and to utilize our community resources to leverage viable, sound investment in the community. This investment will produce livable wages, full-cycle housing and a citizenry that sees Elk River as their community in which to live and work. • • • List of Meetings to Present Strategic Planning Information Chamber Board November 5 Utilities Commission November 12 Economic Development Authority November 13 City Council November 18 Rivers Edge Downtown Development Corp. November 20 Housing and Redevelopment Authority November 25 • • • ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY Project Schedule Jan./Feb., 1997 HRA approves Redevelopment Agreement w/Chuba Company. Staff reviews concepts for closure of King Ave. and construction of parking in that area. March, 1997 Demolition of structures May, 1997 City Council approves re-plat. City Council approves King Ave. closure/parking issues. July, 1997 Close on sale and begin construction on building and King Ave. • Kingmain • STATEMENT OF FINANCIAL ACTIVITY • FOR THE HOUSING AND REDEVELOPMENT AUTHORITY FOR THE PERIOD OCTOBER 31,1996 1996 Month to Year to Budget Date Date Cash Balance $108,936 Revenues Property Tax 56,460 - 36,348 HACA 5,600 - 2,591 Miscellaneous - - 4,000 Interest Income - 283 2,383 Total Revenues 62,060 283 45,322 Expenditures Miscellaneous 500 10 9,351 Improvement Projects 57,000 - 24,787 Reserve for Future Projects 10,000 - - • Land - - 10,000 Transfers 500 - - Total Expenditures 68,000 10 44,138 III