5.0. EDSR 02-14-2005 ITEM # 5.
• '►-�,/j
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development - ✓
DATE: February 14, 2005
SUBJECT: Strategic Industrial Marketing Activities Report
Attachments
• "Dymanics Tackles 400-acre Mixed-Use Project: Big Lake's Big Project,"Minnesota
Real Estate Journal, February 2005
• 2005 Community Profile
• • Downtown Revitalization Project Q &A Newsletter,January 2005
• SCEDA PowerPoint Presentations,January 19,2005 and November 2004
• EDAM Legislative Policy Positions 2005
• EDAM and NAHRO Day at the Capital Brochure
• 2005 Business Retention&Expansion Program Schedule
I. Product Offering Strategy
Industrial Land Issue
There is a separate memo regarding this issue.
I I. Competitive Strategy
The attached article from the Minnesota Real Estate Journal indicates that Dynamics Design
and Land Company has begun a 400-acre mixed-use project in Big Lake,which includes 90
acres of industrial land. The industrial park's infrastructure is slated for completion by
summer of 2005.
III. Key Account/Lead Generation Strategy
Staff has made contact with several key accounts in relation to the recent Request For
Proposals (RFP) for the EDA Brown Property.
IV. Promotions & Advertising Strategy
A total of 18 advertisements for 2005 will appear in The Business Journal, the MN Real
• Estate Journal's Leasing Guide, the Manufacturers Affiance Newsletter and the Elk River
Star News (the full-page "thank you to all Elk River manufacturers" ad in October). Ads
Strategic Industrial Marketing Activities Report
February 14,2005 EDA Meeting
Page 2 of 3
• used last year featuring Cymbet, E& 0 Tool, SoftPac, and Metal Craft will be used again
this year.
V. Public Relations Strategy
Staff and public relations consultant Wolf Marking&Media discussed the public relations
strategy for 2005 this past summer. The detailed strategy will be provided to the EDA next
month.
Community Profile 2005
Attached is the Community Profile for 2005. The Profile is available for download on the
City Website,in the lobby of City Hall, and per request.
Energy City
Staff is working with the Action Committee for Energy (ACE) to redesign the Energy City
Website. ACE will critique the current site and staff will produce a request for proposals
from new Web designers this Spring.
Susie Overholser, of ECONAR Energy Systems and Vance Zehringer of Elk River
Municipal Utilities (both Energy City partners) are assisting staff in preparing Energy City
demonstration photos/verbiage for inclusion in the ECONAR booth at the Energy Design
Conference in Duluth on March 15`h and 16th. In addition, two Energy City partners will be
doing presentations at the conference:
• Vance Zehringer will do an Energy City presentation.
• • Ron Bratlie of the School District will do a presentation on sustainable schools and
has offered to mention Energy City and distribute Energy City brochures during his
presentation.
2005 Money Breakfast
The Money Breakfast will be held at Connections in Big Lake on Wednesday, March 16th
from 8:00am to noon.
Sponsored by the Chambers of Commerce of Becker,Big Lake, Zimmerman,Princeton and
Elk River, the 5th Annual Money Breakfast is a workshop for new or existing small
businesses interested in the latest financing program/techniques,relocating or expanding,
employee retention, etc.
Staff will do a presentation on public financing incentives such as Tax Increment Financing,
Tax Abatement,Revolving Loan Funds, etc.
VI. Strategic Partnership Strategy
Downtown Revitalization Project
The January 2005 Q &A Newsletter is attached. It responds to some of the recent
questions about the project.
A purchase agreement between MetroPlains Development and Nadeau's was executed this
• past month.
Strategic Industrial Marketing Activities Report
February 14,2005 EDA Meeting
Page 3 of 3
The anticipated construction schedule is as follows:
• King Avenue parking lot construction in Spring 2005;
• Demolition and environmental remediation in the Bluff Block in 2005;
• New construction in the Jackson Block Summer 2005; and,
• New construction in the Bluff Block after the US Bank building is vacated and
demolished in Fall 2005.
Sherburne County Strategic Planning
Staff attended the January 19th Sherburne County Economic Development Alliance
(SCEDA) Strategic Planning Session. County Economic Development goals were
developed during this session. The attached PowerPoint presentations were
distributed/discussed at the session. The presentations summarized the County's strategic
planning process,which included a review of adjacent and comparable counties,in addition
to the County's role in Economic Development.
Staff will continue to attend monthly SCEDA meetings. SCEDA anticipates that a summary
of the strategic planning efforts will be available this Spring.
Economic Development Association of Minnesota (EDAM)
Attached are EDAM's 2005 Legislative Policy Positions. Staff participates as Co-Chair of
the EDAM Legislative Committee,which monitors legislation during each session of the
Minnesota Legislature. The Committee also develops a legislative platform,based on
• member input, and advocates for the platform issues at the legislature with the help of
lobbyist Kathy Hahne of Faegre &Benson. EDAM's Day at the Capital event is one way
the Committee plays an advocacy role. The attached brochure provides details of this year's
event,which is co-sponsored by EDAM and Minnesota National Association of Housing&
Redevelopment Officials (NAHRO). The event is scheduled for Tuesday, February 15th
Staff will attend the 8:00am-noon event and will meet with legislators after lunch.
VII. Business Retention Strategy
Beginning in 2003, EDA members have attended Business Retention and Expansion (BRE)
visits with staff. Please indicate to staff on the attached 2005 BRE visit list which companies
you are interested in visiting. An updated list will be provided at the next EDA meeting.
A BRE visit with Metal Craft Machine &Engineering is scheduled for February 28th
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CL City of
Elk -�-�
River
C13065 Orono Parkway
Elk River,MN 55330
Community Profile 2005
Elk River, Minnesota.
The City of Elk River is located 35 minutes northwest of Downtown Minneapolis.
County: Sherburne Senate District#16: Senator Betsy Wergin
County Seat: Elk River Senate District#48: Senator Mike Jungbauer
Metropolitan Area: Minneapolis- House District#16B: Rep.Mark Olson
St.Paul MSA House District#48A: Rep.Tom Hackbarth
Congressional District#6: Congressman Mark Kennedy
Population Estimates
20,000 18,082 18'718
16,447 17 380,.
80,000- 74,763
68,177 71537
15,000 64,417
11,148 `,, 60,000-
10,000 41,945
1 if
5000 29,906
20,000
1980 1990 2000 2001 2002 2003 1980 1990 2000 2001 2002 2003
Elk River Sherburne County
Source.1970,1980,1990,and 2000-U.S.Census Bureau Source:1970,1980,1990,and 2000-U.S.Census Bureau
2001,2002,and 2003-MN State Demographer 2001,2002,and 2003-MN State Demographer
2000 Median Age: 1999 Median Household Income:
Elk River 32 years Elk River $58,114
Sherburne County 31 years Sherburne County $57,014
State of MN 35 years State of MN $47,111
Source:2000-U.S.Census Bureau Source:2000-U.S.Census Bureau
Phone: 763.635.1000
Fax:763.635.1090
www.a.elk-river.mn.us
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a City of
Elk
River
13065 Orono Parkway
V Elk River,MN 55330
Employment
Largest Employers , Product/Service Full-Time Employees Part-Time Employees Total
Independent School District 728 Education n/a n/a 1300
Sherburne County Government 474 30 504
Great River Energy Electric Utility 388 10 398
Guardian Angels of Elk River,Inc. Nursing/Housing 109 259 368
Wal-Mart Retail Store n/a n/a 362
Tescom Corporation Pressure Control Devices 212 1 213
Cub Foods Grocery Store 60 140 200
Menards Retail Store n/a n/a 179
Coborn's Grocery Store 30 131 161
The Home Depot Retail Store n/a n/a 150
E&0 Tool and Plastics,Inc. Tooling and Plastic Molding 115 0 115
Cretex Companies,Inc. Precast Concrete Products 110 0 110
Alltool Pinnacle Design&Mfg.,Inc. Metal Stamping 101 2 103
n/a=not available
Workforce Unemployment Rate
Sherburne County 40,102 Sherburne County 4.2%
MN 2,963,433 MN 3.8%
U.S. 148,246,000 U.S. 5.1%
Source:MN Dept.of Employment and Economic Development,Local Source:MN Dept.of Employment and Economic Development,Local
Area Unemployment Statistics(LAUS),Oct.2004 Area Unemployment Statistics(LAUS),Oct.2004
Workforce Per Industry in Sherburne County f Iaurly Median
Goods Producing Occupation Wage Estimate
(Construction and manufacturing) 5,489 Computer Programmer $30.61
Service Producing Tool&Die Maker 24.44
(Transportation,wholesale and Machinist 19.74
retail trade,services, etc.) 17,194 Welder 18.62
TOTAL 22,683 Office Clerk 13.30
Source:MN Dept.of Employment and Economic Development,Quarterly Assemblers&Fabricators 12.24
Covered Employment and Wage(QCEW),2nd Quarter 2004 Source: MN Dept.of Employment and Economic Development,
Minneapolis-St.Paul MSA Occupational Employment Statistics(OES),
3rd Quarter 2004
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°- city of
Elk
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River
X 13065 Orono Parkway
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V Elk River,MN 55330
Taxes
Tax Capacity Rates 2005 Elk River Tax Rate Estimates.
Year Total Rate* City Rate
2005 estimate 124.755 43.780 School District 728 32.824%
2004 122.714 43.782 City of Elk River 43.780%
2003 134.939 44.614 Sherburne County 42.806%
2002 139.799 43.600 County Special Rail Authority 2.587%
2001 128.544 30.596 City EDA&HRA 2.758%
2000 119.448 30.248 Total Rate 124.755*
Commercial/Industrial Taxes:
Minnesota real estate taxes are based on fair market value estimates. Tax capacity times the tax rate equals
property taxes. Tax capacity is the value of the property under$150,000 times 1.5%plus any value over
$150,000 times 2.0%.
*Total tax rates do not include Market Value School Excess Levy Referendum estimated rate of 0.14784%and state tax of 52
2005 City General Fund Budget:$9,284,100
City Bond Rating: A-2 Moody's
Housing and Development
New Residential Construction Permit Value New Commercial/Industral Construction Permit Value
$95,461,665
80M- $87,101347 40M-
60M- 30M-
$23 920,652
$41,8.77,967 $41,501,578 20M-
40M-
$38,613,568
10M- $6842
,341,570 $8,118, $5,224,891 $4,156,000
20M� • •
I ', -..�
1111 2000 2001 2002 2003 2004
2000 2001 2002 2003 2004
Source: City of Elk River Building and Environmental Department
Source: City of Elk River Building and Environmental Department
New Housing Units Home Sales
Year Total Units Single Family Year - #Sold Mean Price
2004 547 301 2004 442 $227,724
2003 546 285 2003 364 210,976
2002 224 183 2002 313 195,367
2001. 256 163 2001 300 175,149
2000 284 172 2000 253 156,951
Source: City of Elk River Building and Environmental Department Source: Sherburne County Assessors Office
6i.
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City of
Elk.
River
13065 Orono Parkway
V
Elk River,MN 55330
Business and Community Services
Medical Services Water
Seven Clinics,Twelve Dentists,Nine Chiropractors Municipal water source: Wells
Nearest Hospitals Storage capacity: 4,000,000 gallons
Mercy Hospital— Pumping capacity: 6.7 mgd
Coon Rapids, 14 miles Tapwater hardness: 17 grains or 213 ppm
Average demand: 3,700,000 gallons per day
Monticello/Big Lake Community Hospital—
Peak demand: 5,300,000 gallons per day
Monticello, 12 miles Rates and billing: Elk River Municipal Utilities
Mail Services (763) 441-2020
Elk River Post Office (763) 441-2133
Electricity
Banking and Finance Electric utility: Elk River Municipal Utilities
Financial Institutions and Assets—2004 (763) 441-2020
Electric utility: Connexus Energy
First National Bank of Elk River—$404,000,000 (763) 323-2650 Customer Service
The Bank of Elk River—$300,000,000
American National Bank of MN(all branches in MN)— Natural Gas
$222,651,000 Gas service: CenterPoint Energy
Wells Fargo Bank,NW Suburban Market(Retail Deposits)- Rates and billing: (800) 245-2377 Customer Service
$838,000,000
US Bank—$126,000,000 Sanitary Sewer
Sewer service: Municipal
Newspaper Plant capacity: 1,640,000 gallons p/day
Elk River Star News (weekly) Average demand: 1,200,000 gallons p/day
Mpls.Star Tribune and St.Paul Pioneer Press (daily) Rates and billing: Elk River Municipal Utilities
(763) 441-2020
Transportation
Highways Refuse/Recycling
Interstate Highways 7 miles to 1-94 Provided by the city through contracts with private haulers
Federal Highways U.S. 10,U.S. 169 Rates and billing: Elk River Municipal Utilities
State Highways 101 (763) 441-2020
Rail
Burlington Northern Line Telecommunications
Bus Company: Qwest Communications
Greyhound Bus Lines Rates and billing: 1-800-244-1111(Residential)
Northstar Commuter Coach 1-800-603-6000 (Business)
Air Company: NorthStar Access
Anoka County/Blaine Airport Rates and billing: 1-877-225-6754
St.Cloud Regional Airport
Minneapolis/St.Paul International Airport Cable TV
Intra-City& Intro-County Cable service: Charter Communications
Pioneer Taxi Customer service: (800) 581-0081
Sego Taxi and Package
River Rider Heartland Express
W
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d City of
Elk.
River
13065 Orono Parkway
V Elk River,MN 55330
Education
K-12 Education
District 728 Public Schools Number Enrollment Grades
Elementary Schools 7 4,898 K-5
Middle Schools 4 2,585 6-8
High Schools 3 3,188 9-12
Area Learning Center 1 130 8-12
Elk River ParochiallChurch Schools
Rivers Christian Academy 363 K-12
St.Andrew's School 305 K-6
St.John Lutheran School 268 Pre-K-8
Solid Rock Christian Academy 12 K-12
Area Post Secondary Schools
Technical college: Anoka-Hennepin Technical College; www.ank.tec.mn.us
Distance: 9 miles
Community college: Anoka-Ramsey Community College; www.an.cc.mn.us
Distance: 15 miles
Universities: University of Minnesota,Twin Cities; wwwl.umn.edu
St.Cloud State University; www.stcloudstate.edu
Distance: 35 miles
Community Contacts
Catherine Mehelich Heidi Steinmetz Jeff Gongoll
Director of Economic Assistant Director of Economic President
Development Development Elk River Area Chamber of
City of Elk River City of Elk River Commerce
13065 Orono Parkway 13065 Orono Parkway 509 Highway 10
Elk River,MN 55330 Elk River,MN 55330 Elk River,MN 55330
(763) 635-1041 (763) 635-1042 (763) 441-3110
cmehelich@ci.elk-river.mn.us hsteinmetz@ci.elk-river.mn.us eracc@elkriverchamber.org
www.ci.elk-river.mn.us www.ci.elk-river.mn.us www.elkriverchamber.org
J I
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a City of
Elk
River
13065 Orono Parkway
O Elk River,MN 55330
Business Financing and Incentive Programs
The City of Elk River and its EDA and HRA participate in and have access to the following programs:
• City of Elk River Micro Loan Fund • City of Elk River Technical Assistance Program • Minnesota Community Capital
Fund (MCCF) • Tax Increment Financing • Tax Rebate Financing • Elk River Business Incubator• Anoka/Sherburne
County Capital Fund&Elk River Investment Club • Central MN Initiative Foundation • State of Minnesota
• MN Business Finance Corporation (MBFC) • USDA Rural Development
Commercial and Industrial Areas
9 5 Commercial
6 1.Central Business District
193"Avenue 2.Elk River Plaza Mall
7
A 4 ® 3.Barrington Retail/Office
B
School street 4.Elk Park Center
tD A 2 3
5.Hillside Crossing 11
Main Street p 6.Hillside Crossing
F ` O
0
MISSISSIPPI RIVER 7.Hillside Crossing South
G 8.Elk River Crossing
N H
N I 9.Elk Ridge Center
v, 7
1 3"Avenue n
C Industrial
A.Elk River Industrial Park
B.McChesney Industrial Park
C.Rail 10
J D.RR Industrial Park
�S E.Ar-Mon Industrial Park
E F. Sandpiper Business Park
G.Elk River Business Park
Visit the city website at www.ci.elk-river.mn.us and click on H.EDA Property
"Grow Your Business"for current listings of available industrial sites.
I. Proposed Northstar Corridor
Phone: 763.635.1000 J. Cascade Industrial Park
Fax:763.635.1090
www.ci.elk-rivermn.us
Daa'ita
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°City Efk1 ,
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Enhancing Downtown Elk River's Role
�/ As a Vital Retail,Commercial and Residential Area.
Q. I understand the City has approved a final develop- square feet of first floor commercial development along Main
ment agreement with MetroPlains. Does the Street and Jackson Avenue; 32 rental housing units on the
approval of the final development agreement mean upper two floors and underground parking. The Jackson Block
the project is a certain thing? is currently a City-owned parking lot.
A. No, not yet. While this is a very signifi-
cant event, there is still due diligenceQ.What is the schedule for
that needs to occur on the part of the This Anewsletter the project?
City and the developer. There are still a responds to some A. The tentative schedule is as follows:
number of tasks that must be complet-
e the recent questions • MetroPlains'acquisition of properties by
ed before construction can occur. Spring 2005;
These include construction drawings + b it River
and final plat approvals, securing King Avenue parking lot construction in
financing, and acquisition of property. downtown revitalization Spring 2005
and redevelopment. •
Q. What is a final development Demolition and environmental remedia
agreement? tion in the Bluff Block in 2005;
The City Council approved the final development agreement • Construction begins in the Jackson Block in Summer 2005
glir with MetroPlains at the Council's meeting on December 6, and is completed by the end of 2006;
2004. The final development agreement sets out the phasing Construction begins in the Bluff Block in Fall 2005 after
and timing of the project, the financial commitment of the the U.S. Bank building is vacated and demolished, and
developer, as well as any assistance provided by the City. construction is completed by the end of 2006.
Q. What type of development is „.,,,,,,, , _�6
proposed for the Bluff and � ,
Jackson Blocks? •' , E
A. The revitalization will include the rede
7 •,/,/,, ,._ -. ,..
velopment of the Bluff and Jackson •'' Sp o
Blocks, and the development of the OS
King Avenue parking lot. Specific plans • , ,1,3, -51 � '°” C s
for Bluff and Jackson Blocks are below. `
The Bluff Block is located on the south- - •" .� _
� f
west corner of Main Street and County0 ,‘ �'/
Road 42. It includes about 10,000 square k I
feet of commercial space on the first floor ---�T �� '� j
along Main Street; 60-68 units of for-sale ' . {
housing on the upper three floors, under- M.' "7-7.
/ I
ground parking, and a connection to the r
City with a plaza on the corner of Main "' AMAIN '
Street and County Road 42. The Bluff \\��` ST
Block currently includes three buildings
along the Mississippi River. I - ! • K t
,�
II I B' v
x
The Jackson Block is located on the "-------______ �� t�X � f I
northeast corner of Jackson Avenue and _ "' -
Main Street. It includes about 10,000 t--1--
CITY OF ELK RIVER DOWNTOWN RIVERFRONT REVITALIZATION Q&A NEWSLETTER JANUARY 2005
Q. Who is paying for this redevelopment? Q. How will construction workers'parking be handled?
A. MetroPlains will be required to secure about$14 million in A. The City Police Department and other City staff will monitor
funding for this project to construct developments in the the situation and address any complaints that arise through
Jackson and Bluff Blocks and the new King Avenue parking the duration of the construction period. Police will enforce th
lot. Under the terms of the development agreement, the City construction parking plan to ensure there is still adequate
will provide approximately$2.3 million in financial assistance and convenient parking for everyone who is shopping, visit-
through the tax increment generated by the project. ing or working in downtown.
Q. How will the use of Tax Increment Financing Q. Will it be tough to get around in downtown when
impact taxing jurisdictions? construction occurs?
A. The taxing jurisdictions will continue to get the same amount A. No, not on a regular basis. As with any construction project,
of taxing revenue as they did before the development. Only there may be certain times when the construction impacts
the increased taxes from the new development will be used traffic in certain areas of downtown. However, the City will
to assist the development. provide clear and frequent communications throughout the
construction period to make sure residents and businesses
Q. What can you tell me about plans for a riverfront are aware of what is happening in downtown at critical
park area/gathering place for residents? points during construction. Information will be provided
A. The Elk River Park and Recreation Commission is currently through a variety of means including the City Web site at
working on a plan for a park area including a gathering www.ci.elk-rivermn.us, news releases to the Elk River Star
place along the river to allow all Elk River residents to take News, and the City newsletter- The Current.
advantage of river views. There is also the potential for the
development of a river walk. The planning and design phase Q. Do we know yet what retail businesses will be
should be completed by Spring 2005. Construction will either located in the new buildings on Bluff and
be phased with downtown construction, or could occur a Jackson Blocks?
short time later. A. No, not yet. MetroPlains will be working with potential busi-
nesses and more will be known about the tenants of down-
Q. With the new development,will there be town commercial space later next year.
parking problems downtown?
A. Ensuring the downtown has adequate parking is an impor- Q. When will the new housing units be ready for II
tant issue to the City and to downtown businesses. A vibrant occupancy and who do I contact about them?
and thriving downtown will always have certain times when A. At least some of the new housing units are expected to be
there are traffic congestion and parking issues and redevel- ready for occupancy by Fall 2006. Anyone who is interested
opment by its nature will bring more visitors to downtown. in rental or for-sale housing in Jackson and Bluff Blocks
Successfully addressing parking concerns means both pro- should contact Vern Hanson of MetroPlains at
viding physical parking spaces and implementing parking (651)646-7848 to learn more about the availability.
management and enforcement strategies.
Q. How can I stay informed?
By their very nature, downtowns are significantly different in A. There are several ways you can stay informed:
character than shopping malls or strip and commercial cen-
ters. One of those key differences is a lack of large masses • Visit the City's Web site at www.ci.elk river.mn.us and click
of parking that are located immediately in front of business- on the "News & Events" sidebar to view the Downtown
es, consuming large amounts of space. Downtown parking is Revitalization Project Update page.
designed around existing buildings. • Attend HRA and City Council meetings or watch them on
ERtV Channel 12. Meeting information is available on the
Currently, there are 240 public parking stalls downtown in City Web site.
addition to private parking provided by Dare's, The Bank of • Attend regular Rivers Edge Downtown Business Association
Elk River, First National Bank of Elk River, Nadeau's, U.S. meetings held on the second Wednesday of each month at
Bank, and behind the Sunshine Depot. New development in
8 a.m. at the Elk River Chamber of Commerce office.
the Bluff and Jackson Blocks will include about 176 new
parking stalls, mostly underground, dedicated to building • Read the Elk River Star News. Articles on the project
tenants. The King Avenue parking lot that is being construct- frequently appear in the Star News and in the City's
ed will provide approximately 44 parking stalls to replace the newsletter, The Current, which is
21 lost in Jackson Block construction. Finally, the City has distributed as a Star News insert
established the King Avenue Parking Lot Task Force and will every other month. J/
be working with downtown business owners on issues of • Contact the Economic Development City of •
parking design and enforcement. Elk
Department at(763)635-1040.
River
January 19,2005
•
Sherburne County
Economic Development
Identifying the County Role,
Goals,and Action Steps
January 2005
Process
November 4 session in Big Lake
a Situation Analysis
■ County Role&Goal Discussion
November/December
a Review Nov 4 session AND role of other counties
IIIw/SCEDA&Co. Commissioners—Refine role
■ Measuring performance(Brian/Janna)
Today
H County Role, Goals&Action Steps
WorkProduct
m Action Plan, Measures, Service Delivery, Budget
County Role—Top Choices (Nov 4)
▪ Handle tax abatement efficiently/effectively
w Advocate for critical infrastructure important to
existing companies&competitiveness
a Maintain basic website w/referral to
communities
w Facilitate county-wide events like Money
Breakfasts
w Conduct biz retention visits in areas of county
without active retention programs
economic Development Services -
Minneapolis 1
January 19,2005
•
County Role-Secondary Choices
. Market the county externally in cooperation with
cities
• Maintain information on financing tools
• Facilitate long-term planning of business&
industrial parks
• Support smaller jurisdictions w/o ED staff
• Undertake initiatives that support all
communities—target industry research,industry
cluster development,explore multi-modal
County Role-Secondary Choices
• Explore county involvement in land banking for
future business parks
• Respond in a customer friendly manner to
inquiries—refer to communities
• Assist communities on an"as-needed"basis(i.e_
Princeton re:US EDA grant for industrial park
infrastructure)
Research Highlights—Other Counties
. Reviewed—Benton,Chisago,Dakota,
Hennepin,Scott,Stearns,Wright (Twin Cities
"collar counties"+St.Cloud area)
• Tremendous variety both organizationally and
programmatically
r
Economic Development Services -
Minneapolis 2
January 19,2005
•
Organizational Options
■ Non-profit (Wright)
■ HRA/EDA(Chisago,Stearns)
• County employee(Benton,Hennepin,Scott)
• Both non-profit&County CDA(Dakota)
Business community/citizen involvement
typically lowest with County employee
model;highest with non-profit
Program Activities — Most Typical
= Support for communities w/out ED
staff(Hennepin,Benton,Chisago,Steams)
= Business retention visits(Benton,Wright,
Chisago. Steams participates with Partnership.Dakota
S anticipates in new non-profit)
• Workshops,meetings like"Money
Breakfast" (Benton,Chisago,Dakota non-profit,
Wright)
■ Finance&Marketing intentions(detailed
below)
Program Activities - Marketing
■ External marketing in partnership with
cities(Chisago)
■ External marketing anticipated through
The Partnership(Benton,Steams)
= Marketing planned in new non-profit
(Dakota)
economic Development Services -
Minneapolis 3
January 19,2005
•
Program Activities - Finance
■Tax abatement(Dakota,Steams,Chisago.
Benton considering)
•TIF in the townships-limited,changing
(Chisago,Benton)
• Loan funds(Benton,Dakota CDA,Steams,
Chicago)
■ Exploring Common Bond Fund(Hennepin)
in Angel investor network(Wright)
Program Activities — Land
Development
■ Land acquisition for future business&
industrial parks in partnership with cities
(Chisago)
■ Hennepin considering planning for business
&industrial parks
•
■ Benton has assisted with business parks
upon community request; plans to consider
land acquisition for future industrial parks
■ Transit oriented development(Hennepin)
Program Activities -Various
■ Growth management planning,zoning&
county infrastructure to handle$100
million in building permits in the townships;
including sewer&water support(Dakota)
a Brings an economic development
perspective to all county investments
--roads, social services,
environmental,zoning(Hennepin)
■ Workforce housing(Dakota Co CDA)
Economic Development Services -
•
Minneapolis 4
January 19,2005
•
Focus on Chisago County
. Low commercial/industrial tax base
■ Rapid residential growth escalates differential
between residential and commercial/industrial
tax base
• Rapid residential growth drives up land prices
dramatically
a Cities"react"to residential developer proposals;
private market doesn't preserve land for
industrial
Chisago County - Organization
e HRA with EDA powers
® Independent board 5-member appointed by
the county board;5 yr terms
• a "Appreciated&valued by county board;
insulated from elections"
a 3 staff
" Exec Dir
" Business&CD Director
Admin assistant/housing rehab
Chisago County - Programs
a Faced with rapidly escalating land prices&
demand for residential;feel it's critical to
acquire,hold&develop sites in good locations
(transportation+city infrastructure)
a HRA levy used to finance business parks in
partnership with cities(land&infrastructure)
a Assisted with business parks in Chisago,
Wyoming,N.Branch,Stacy,&Rush City
a Partner 50:50 with cities. Use HRA levy for debt
service;paid back when land sells
economic Development Services -
Minneapolis 5
January 19,2005
•
Chisago County - Programs
. Tax abatement—about 30 approved.Mostly
manufacturing. Have done contaminated or
redevelopment sites for retail
■ Did TIF in township—now focusing on business
parks due to fire suppression
• Have website w/referral to communities
■ Support smaller jurisdictions(none have ED staff,
some use consultants)
■ Occasionally do events(Manufacturers
appreciation;OSHA seminar)
. Volunteers assist with BRE(100 letters,visits to
50-60 companies)
Chisago County - Programs
. External marketing is done in partnership with
cities 50:50
. Help cities/companies with financial packaging
• Loan deposit program with 10 banks •
• Cities take lead on what they want;county helps
with financing
• HRA Director is first point of contact w/
prospects;involves communities;stays involved
start to finish
County Commissioner Priorities
■ Acquiring&holding land for business&
industrial park development(possibly in
partnership with cities)
■ Planning&zoning for commercial/industrial,
(gravel), commuter rail
■ Support for communities with less capacity
■ ED perspective to all departments
■ Tax abatement
•
Economic Development Services -
Minneapolis 6
•
January 19,2005
•
Tonight's Exercises
. Identify goals
a Identify preliminary activities/timeline
• Year 1,2,3
• Can't do everything first year
• Some activities lay the foundation for next
III
Economic Development Services -
Minneapolis 7
V
November 2004
County Economic
Development
A Review of Adjacent&
Comparable Counties
Prepared for Sherburne County
Economic Development
November 2004
Wright County - Organization
a Non-profit organization
a Annual budget of$36,000
• a 1 part-time staff
a 15 member board (utilities, bankers, city,
township, businesses)
Volunteers serve on marketing &
finance committees
Wright County - Programs
FA Business visits—director passes info along to
cities
iA Series of 3 development seminars each year
u. Golf
• Director participates in NAIOP,Twin Cities
networking events to ID prospects
e Angel investor network
• County doesn't do tax abatement
.
Economic Development Services 1
November 2004
•
Chisago County - Organization
a HRA with EDA powers
• Independent board 5-member appointed by
the county board;5 yr terms
a"Appreciated&valued by county board;
insulated from elections'
a 3 staff
•Exec Dir
• Business&CD Director
•Admin assistant/housing rehab
Chisago County - Programs
• HRA levy used to finance business parks in
partnership with cities(land&infrastructure)
•Assisted with business parks in Chisago,
Wyoming,N.Branch,Stacy,&Rush City
• Partner 50:50 with cities. Use HRA levy for
•
debt service;paid back when land sells
s Faced with rapidly escalating land prices&
demand for residential;feel it's critical to
acquire,hold&develop sites in good
locations(transportation+city infrastructure)
• C/I tax values are low
Chisago County - Programs
• Tax abatement—about 30 approved. Mostly
manufacturing. Have done contaminated or
redevelopment sites for retail
a Did TIF in township—now focusing on business
parks due to fire suppression
• Have website w/referral to communities
• Support smaller jurisdictions(none have ED staff,
some use consultants)
a Occasionally do events(Manufacturer's
appreciation;OSHA seminar_
•Volunteers assist with BRE(100 letters,visits to
50-60 companies)
•
Economic Development Services 2
November 2004
•
Chisago County - Programs
a External marketing is done in partnership with
cities 50:50
a Help cities/companies with financial
packaging
a Loan deposit program with 10 banks
a Cities take lead on what they want;county
helps with financing
a Director is first point of contact w/prospects;
involves communities;stays involved start to
finish
Stearns County - Organization
a Used to be county staff
a Now county HRA
a Advantage of county department head—
more connected to other county departments
a As county staff very active with dairy—impact
on farms&also major processors
HRA commissioners appointed—1 from each
county commissioner district
a 7 staff;only exec director involved part time in
economic development
Stearns County - Programs
a 85%of activity is housing related
a Focus on western Stearns in
communities with less capacity
a Tax abatement policy &process-
requires 4 votes(St. Cloud has 3)
a Did advocate extensively for Hwy 23
No events
a Participates in BRE if invited along
•
Economic Development Services 3
November 2004
•
Stearns County - Programs
■Marketing—plan to support Partnership in
new marketing efforts;doesn't believe it's
cost effective for cities to market
independently
s Not involved with business park development
Does get called by local companies;provides
assistance;has long tenure/trust
•Helps communities that don't have capacity
s Participates in regional initiatives-believe that
strategy,research,etc.belong at that level
Hennepin County - Organization
•County staff person
•Volunteers involved only through WIB
•
Hennepin County - Programs
• Goal to keep businesses in the county
Brings an economic development perspective to
all county investments—roads,social services,
environmental,zoning
Supports smaller jurisdictions without staff(Loretto,
Long Lake,Excelsior)
X Common bond fund
g Transit oriented development
• Discussing involvement in planning business&
industrial parks
•
Economic Development Services 4
November 2004
Dakota County - Organization
• Historically non-profit Partnership with extensive
city&county funding(folded 3-4 years ago)
• County$25K+space,internet,support staff
• New non-profit forming affiliated with the WIB;
strong utility&college involvement
a Want to raise$150K privately then approach
cities for$.10 per capita
• New 15 member board just met
• Consultant 5-10 hours per week
Dakota County - Organization
a 2 Partnership committees continued w/o
staff—International Trade&Technology
a CDA(special legislation includes HRA and
EDA powers)does abatement
a Because Dakota County ceded powers to
CDA in special legislation, the county itself
is limited—probably can't have ED staff
person
Dakota County - Programs
a New non-profit expects to be involved in
BRE, marketing, events
a County certified as"e-commerce ready"
x Challenges with Chambers&
"competition"
ge Dakota Future expects to help with
recruitment; cities can handle proposals&
financing
•
Economic Development Services 5
November 2004
•
Dakota County - Programs
• Expect to jump on"Positively MN"bandwagon
for marketing
• BIO zone Twin Cities to Rochester
• Dakota County Capital Fund$350,000 raised
years ago;CDA is now administering
•WiII market for Twin Cities Metro(SBA 504
company) will get%from each deal in county—
typically 35/year
Dakota County - Programs
CDA(HRA+ EDA powers)focuses on
•Workforce housing
•Administers the Capital Fund
•15 TIF districts(13 housing;2 redevelopment
in W.St.Paul) •
■County general fund goes only to senior
housing and affordable housing
•Tax abatement ONLY for blighted land—will
do ec.dev.or housing
Benton - Organization
•County employee (1)
• Employee is member of the Department
of Development (includes zoning, etc)
so she hears about permit requests etc.
Get occasional, minor clerical support
• EDA and HRA exist but don't levy
• Finance Committee manages loan fund
•
Economic Development Services 6
November 2004
•
Benton County - Programs
■Do both transaction related activity and
long-term strategic activities.
IE Help communities and businesses
E Helped start the Foley Chamber
■Rice calls county staff person"their
economic developer"
Benton - Programs
c Emphasis on supporting jurisdictions
without staff. In St. Cloud participates in
The Partnership, supports the East Side
boosters, & ECE Hwy 23 industrial park
• Does some business retention visits with
the Partnership in the SC area;do others in
addition
E 1/3 of mfgr is wood-working related; have
employee training fund & industry group
meetings
Benton County - Programs
TIF for 2 projects not in cities(Bauerly
Brothers&ThermoTech window expansion)
E Will consider tax abatement again after
election (January)
Had ED website first; now part of county
website; some compatibility issues
KA New initiative"garage to first building"
•
Economic Development Services 7
November 2004
4111
Benton County - Industrial land
•Historically helped with industrial parks
only if communities ask
•Some commissioners interested in land
acquisition for future business parks(like
Chisago County)
■ ED group will look at comp plan and gaps
in industrial land along growth&
transportation corridors.
Scott County - Organization
•County employee
a Monthly meetings of 8 cities, school
districts and 2 townships
• Building trust and collaboration in .
rapidly growing area
•Resulted in shared law enforcement
training facility
Scott County - Programs
Focus on growth management planning
•$100 million in building permits in the
townships
Focus on county infrastructure to support
that growth
• Doing open space design to concentrate
development(no 2.5 acre lots)
•Credit River- 1 per 1-2 acres with
community sewer&water in township
S
Economic Development Services 8
0
•
•
Legislative Policy Positions 2005
Economic
GDAA A Development
/Y/ Association of
Minnesota
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• Who is EDAM?
The Economic Development Association of Minnesota (EDAM) is a
statewide association representing more than 500 public and private sector
professionals involved with implementing state, regional, or local economic
development initiatives.
Our legislative policies are shaped by members' unique experience and
understanding of the tools and tactics that are most effective in positioning
and marketing Minnesota as a location for corporate, small business, hous-
ing and community investment. Economic developers generally focus on
financing, marketing and implementation strategies for:
• Developing public infrastructure
• Facilitating business expansion,job creation, and redevelopment
• Attracting, training and mobilizing a skilled local workforce
• Addressing local housing needs
• Marketing Minnesota's benefits as a place to live and locate a business
•
• EDAM Building Communities
Developing Careers
0
Introduction
An Economic Development Strategy for Minnesota
Successful economic development projects are generally a result of a number
of different factors.
EDAM recommends a strategic approach to Minnesota's economic develop-
ment policies and legislation based on the following core economic develop-
ment components:
1. Promoting business retention and expansion
2. Marketing to targeted industries
3. Supporting entrepreneurship
4. Providing financial tools for economic development
5. Building and maintaining infrastructure
6. Providing a trained and educated workforce
EDAM will work with the Department of Employment and Economic
Development (DEED), the Pawlenty Administration, legislators, and other
interested organizations to establish a comprehensive economic develop-
ment strategy for Minnesota and to create a forum in which theses entities
may periodically review and revise the strategy.
one
Promote Business
Retention and Expansion.
Issue EDAM Position
States compete vigorously to attract new busi- • EDAM supports increased efforts to
nesses. It is much more efficient and cost retain and expand Minnesota's businesses,
effective, however, to retain and expand a including joint efforts between state,
state's existing businesses.Therefore, business regional, and local governments, the
retention and expansion must be a key corn- Chamber of Commerce, and private sec-
ponent of a state's economic development tor entities.
efforts.
• EDAM encourages the funding and uti-
lization of existing retention and expan-
sion resources, such as the University of
Minnesota's BR&E Strategies Program,
as well as academic and state agency
research on economic development mat-
ters.
1• �
I
two
•
Targeted Business
0
Attraction and
Marketing
Issue EDAM Position
Marketing is a large part of economic devel- • EDAM supports increased funding for
opment, and may include advertising, trade the Bioscience Initiative,which encour-
missions, and attendance at trade shows. It is ages the growth and expansion of an
not financially or practically feasible, nor existing Minnesota industry.
desirable to contact every industry or entre
• EDAM supports existing efforts by the
preneur.Therefore, industry clusters which
already exist and flourish in Minnesota Department of Employment and
should be targeted though various promo- Economic Development to promote
tional avenues. Minnesota regionally, nationally, and
internationally through trade shows and
promotional materials.
Redevelopment means economic develop-
ment for many communities. EDAM • EDAM also supports the public/private
encourages the establishment of policies and efforts of Positively Minnesota,which
tools to help make redevelopment sites a seeks to attract new and expanding busi-
viable option for business investment. nesses to the State.
• EDAM encourages additional efforts and
funding in 2005 to market Minnesota
Ank
lipand its assets, including the JOBZ pro-
gram.
• EDAM supports the development of
tools such as the Enterprise Network
System, Bizpathways, and cost/benefit
analysis tools.
three
Entre renuershi
p p
•
Issue EDAM Position
A viable business community sustains urban • EDAM supports efforts to assist entre-
neighborhoods, suburban communities, and preneurs in both rural and urban areas
rural towns, by providing services, creating with financial and technical assistance, as
jobs, and enabling people to live in the corn- well business friendly public policy.
munities of their choice. Efforts should be
taken to encourage and promote entrepre- • EDAM supports initiatives, such as tech-
neurship throughout the State and organize nology transfer programs or angel
technical and financial resources for entrepre- investor tax credits, that attract invest-
neurs. ment and venture capital to Minnesota.
fib
it
I
,
II
l
I four
Economic Development
• Finance and Tools
Issue of an Urban Renewal TIF District to
assist mixed-use projects, thereby allow-
The state must provide viable financial tools
that effectively and efficiently promote its ing different types of districts to be creat-
ed and share resources.
economic development objects. Minnesota
tends to restrict its use of economic develop- • EDAM supports changes to the TIF
ment financial tools, while competing states statute which would allow redevelopment
appear to use similar tools more liberally. districts to utilize the base or frozen value
Although it's not desirable to unnecessarily of the district.
provide corporate subsidies, Minnesota's self-
•
imposed restrictions put it at a competitive EDAM opposes legislation which would
restrict or eliminate the use of eminent
disadvantage to other states.
domain for economic or development
EDAM Position purposes. EDAM is not opposed, howev-
er, to changes that would create a more
• EDAM supports initiatives that better transparent public process.
enable the generation and utilization of
•
on-site development dollars, such as TIF EDAM supports proposals by the TIF
and tax abatement, and the use of such Taskforce to better facilitate development
tools to fund workforce training efforts. throughout Minnesota, including
0
expanding allowable uses of TIF, funding
• EDAM supports the consideration and business development and land recycling
research of new financial tools, such as programs, and enhancing tax abatement.
leveraging a portion of the State's pension
•
fund, to assist economic development EDAM supports bonding for the
projects. Redevelopment Account, as well as flexi-
bility to use it in both the Metro Area
• EDAM supports revisions to the Business and Greater Minnesota. EDAM also sup-
Subsidy Law which reduce regulatory ports bonding for projects which directly
burdens while still providing public dis- support economic development efforts,
closure of business assistance. such as local transportation projects, util-
ity extensions, and business development
• EDAM supports legislation initially pro- and land recycling programs.
posed in 2004 to allow the establishment
five
•
ill •
Build and Maintain
•
I
n
fr
astructure
IssueI
EDAM Position
Economic development is directly dependent • EDAM supports efforts to increase fund-
on
the availability and adequacy of infrastruc- ing for roadway expansions and improve-
ture, including but not limited to, roads, rail, ments in both rural and urban areas of
sewer, water, and telecommunications. the State.
Infrastructure is an important issue in both
large cities as well as rural areas throughout • EDAM supports funding programs for
Minnesota and is an important site selection communities to add, improve, and
factor.The construction, maintenance, and expand utility capacity to aid business
1 upgrading of infrastructure is a key compo-
growth, especially in rural areas.
nent to Minnesota's economic development.
• EDAM supports the expansion of light
rail and commuter rail,which not only
aid in transportation but present oppor-
tunities for economic development and
redevelopment.
• EDAM supports a state-lead initiative to
III
promote and guide the development and
evolution of broadband technology with-
in Minnesota, including the development
of gigabyte capacity and growing a-com-
merce.
i
six
Workforce Development
and Education
Issue EDAM Position
An educated workforce is often recognized as • EDAM supports integrating the work-
one of Minnesota's great assets and is critical force training needs of the State's key
to the State's continued growth and develop- industries with the curricula of the
ment.A trained and educated workforce is University of Minnesota and MNSCU
also is an important site selection factor for systems.
many companies considering an new loca-
tion. • EDAM also supports continued funding
for customized training services,the one-
stop Workforce Center systems, and
increased flexibility in the use of
Workforce Development Fund dollars,
such as customized training.
5
seven
•
The Legislative Committee
2004
LaDonna Boyd
I
Eric Ewald, EDAM Executive Director I
Henry Fisher
Kathryn Hahne, EDAM Government Relations Consultant
Jennifer Hawkins
Kim Lindquist
Carol Lovro
Curt Milburn
Tom Moore
Marc Nevinski, Co-Chair
John Rajkowski
Margaret Robare
Heidi Steinmetz, Co-Chair
III Joseph C.Weis
• Thanks to Our Sponsors
The following organizations sponsored the publication of this policy booklet.
Connexus Energy • CONNEXUS®
Your Community Energy Partner
Dakota Electric , DAKOTA
ELECTRIC
ASSOCIATION
Your Touchstone Energy`Partner
Ehlers & Associates
•
Faegre & Benson
FAEGRE
BENSON
LLP
Springsted
1E1 Springsted
4
1
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i
•
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EDAM Building Communities
g
Develo in Careers
Developing
Economic Development Association of Minnesota li
1000 Westgate Drive, Suite 252
Saint Paul,MN 55114-1067
Tel 651-290-6296 r
Fax 651-290-2266
,11
www.edam.org
edam@ewald.com
0
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2005
Day
at the .
• Capitol .
MINNESOTA NA
& EDAM LEGISLATIVE
BREAKFAST & BRIEFING
FEBRUARY 15, 2005
8:OOAM—I2:00PM
0
Join Minnesota NAHRO & EDAM members
AND GET INVOLVED IN THE LEGISLATIVE PROCESS.
INFLUENCE
THE IMPACT TO YOUR COMMUNITY,SERVICES AND FUNDING.
MINNESOTA
FILO SET UP MEETINGS WITH YOUR MINNESOTA LEGISLATIVE EDAM
REPRESENTATIVES FOR FEBRUARY I5TH, FOLLOWING THE
io
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�mr¢1, BREAKFAST & BRIEFING. Anal°^ °f”'°°��