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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 • 110 a) cd k.0'..4:3,i:i-:._, 1:. bx. .X i ' l� I '.'M' ! 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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 W CZ 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 W —1 0 \'''/./ c °- city of Elk X River X 13065 Orono Parkway O 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. OCZ 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 oc 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 O OC 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 •(.L. - _ °City Efk1 , ,, •T � e r JANUARY 2005 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 i ...0;021104. _ ,1,-.,' ::',',',.1, .1,„v.. .,. , , ,?i• ^'w,awtl�:.. :.. r r ',,,s. ,� * K' f WW"2 3 mwwv�- et, ' III if ›: -''- •'t° i''''' ;Pl...: —•••••rn ---- '• e °.. ,- .m , w-w r :; rt_ .... h � �}{ * ,`,gip„ wfliWrt+eM�YeudArewS:�.ryy ;,ay,{' � T. X i Ifo,. ` I x It �: k.4. ' s � f"'}B,fiA'" i 114 .4 4+eY'ssC 3....d+:.Pnia•.e :" «.. �,u.-x '�tR4rt:w3AW "w"*.✓^+}{ -2 00 t. ..:::.. ....° ..: .. . »p. ', . ? h,4 fid � 1 *' - . F . �'a ='�qr ' t s .a ^^k # 4 . .-.:4, k^+a ��'�; 4` r ,.. f k < *,, � $ u>.n e..4.-,&,4,c � s.w._ • 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 i i • 3 d ,, "' r ' 'T '''( ' ---, , ,-,1-';'44*-' 'z,`?'1' ''4;4';'`.4,441 4 ..mow. � § 1 / as - .,,.ter, ,' a,,, , �. " r a YI ,r y . II f t c ' 06*:y ITa a i i 0 �a 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 ` ' 1 ' 11. - i-z---.--. 1 -,'„' t � 'yi •� t F c '� ! ° tel', `, r, t • sora • s 'tzf *ra Y,:- >} ,. � ° .` w.' "„ ". „ -"44—"---- ..a , " �, 1, 1 $ '✓ �: �, i 1� f' I,, 1 If l,t II 2,, [` " r r ''},*-r ,,,,.: L Y w �ID ,�. . ? ' $ i . i . . ^ n" -fib h Ii. ti TMC•� - ,'R' a�.s 1 s , ;.1. � � 1�n• � r r'i�� :,,,,,-..,4,..-r,,,,,'1^S ;, � r4 a" z —. _ ,� ,ra x ,� YF .,.,,;••. ---, n ..., _ ¢ e" a 7 v r I �' f ,��3 f ''''11':,;',..,1P.4'4'17,-;*‘"-::,- (.4,-..,t..-' � .y '� f3- 5 ,i'7 ' 7,:1„ '''F 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 nfrh�N¢rio¢¢7 ,,,,,„e,„,,.,,,,JHnn.nrR Economic Ikvdo �mr¢1, BREAKFAST & BRIEFING. Anal°^ °f”'°°��