Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
6.0. EDSR 03-14-2005
ITEM #6. City of Elk -�-� River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: March 14, 2005 SUBJECT: Consider Proposals for EDA Brown Property Development Attachments • EDA Request-for-Proposals dated February 2, 2005. • Memo from Sid Inman, Ehlers &Associates dated March 14, 2005. • Development Proposal Analysis, March 14, 2005. • Proposal—Duke Realty • Proposal—Amcon Background At its December 2004 meeting the EDA directed staff to work with Ehlers &Associates in developing a request-for-proposals that would be sent to interested developers for the EDA Brown Property. In January 2005 the EDA provided feedback to staff on the attached request for proposals and conceptual layout for the property. RFP materials were prepared and mailed to 20 developers and brokers in early February. The deadline for proposal submissions was March 1. Development proposals were received from Duke Realty and Amcon. Analysis Ehlers and staff reviewed the proposals and have provided a side by side comparison for discussion at the EDA meeting. Issues to Consider Development Proposals The attached memo from Sid Inman, Ehlers &Associates summarizes the results of the RFP process as it relates to the EDA's goals and objectives for the development. Staff • requests the EDA's direction regarding the proposal options as Mr. Inman has outlined in his memo. S:\EDA\Industrial Land\EDA Brown Property\Memos\05.March.14 eda mtg.doc Consider Proposals for EDA Brown Property Development March 14,2005 EDA Meeting Page 2 of 2 • Timing of Public Improvements/Buildable Lots In the past several months the EDA has indicated an interest in initiating the public improvement project as soon as possible in order to have buildable lots available by fall 2005. This schedule was driven in part by a proposed 100,000sf industrial expansion project which has since been delayed for 18-months. The City Engineer,Terry Maurer has indicated that in order to have lots buildable by fall the public improvement process would need to begin in March, commencing with an EDA recommendation to City Council to authorize a feasibility study be completed for the EDA Brown property. Since the delay of the large industrial project and the proposed new concept design included in at least one of the development proposals, staff requests the EDA's direction regarding the desired timing of public improvements. The concept design would dictate the results of the feasibility study. However, completing the feasibility study would not require the EDA/City to proceed with the public improvement project. Ehlers and staff will discuss with the EDA the options for the public improvement project. • 410 1,/ ity ikk River 13065 Orono Parkway Elk River,MN 55330 MEMORANDUM TO: Interested Developers FROM: Catherine Mehelich, Director of Economic Development DATE: February 2, 2005 SUBJECT: Business Park Development Opportunity The City of Elk River Economic Development Authority is requesting development program proposals for the Brown Business Park Properties. The purpose of the proposals is to assess the interest, financial feasibility, and concept compatibility with the City's development concept (see attached). • Ten (10) copies of the completed materials should be submitted to the attention of Catherine Mehelich, Director of Economic Development no later than 4:00 PM on March 1, 2005. The following background materials are enclosed in addition to the Request for Proposals: • Site and aerial maps for the area • Zoning Map and Zoning Code for Business Park District (BP) • City's development concept • Description of public improvements/utilities located in the area • Estimate of future public improvements (Public Improvements may include the use of City assessment bonds) • 2005 Community Profile • City Prospect/Inquiry Report 2001 to mid-2004 The proposals will be reviewed and evaluated by the Director of Economic Development and Financial Advisor. The evaluation will be provided to the EDA to be used in the selection of developers. Thank you for your interest in developing within our community. We look forward to receiving information regarding your proposal. 1110 Phone:763.635.1000 Fax:763.635.1090 www.ci.elk-river.mn.us 0 IIIIIIIIIIIIMIIIIIIIIIIMIMIIIIIIIIIIIIIIIIMIIIIIIIIMIIMIMIIIMIIMIIMIII„ City of 'ver City of Elk River Economic Development Authority Brown Business Park Properties Request for Proposals Superb locations in Elk River: - Rapidly growing area located 35 minutes from Minneapolis • - Light industrial sites available on 45 acres - Individual parcels could range from 1.5 to 12 acres - Water, sewer, electric and natural gas utilities available - Convenient access to and located 1/4 mile from US 169 & US 10 - Eight miles from Interstate Highway 94 1 ST.CLOUD i F iiiiiii � �0 ELK RIVER A ELK RIVERSL 40U AND FROM ST.CLOUD AND THE TWIN CD'SLLES ST.PAUL 394 The City of Elk River is requesting proposals for the sale and development of several light industrial parcels located in Elk River, Minnesota • Contact Catherine Mehelich at 763-635-1041 for more information Proposals accepted through March 1, 2005 Page 1 of 6 REQUEST FOR PROPOSALS • FOR SALE AND DEVELOPMENT Elk River, Minnesota Section One: Introduction The Elk River Economic Development Authority is requesting proposals for the sale and development of the Brown Business Park in the City of Elk River. The parcels comprise 45 acres, and are zoned Business Park with an underlying land use of light industrial. Individual lots may range in size from 1.5 to 12 acres. The parcels are located adjacent to Twin Lakes Road with convenient access to U.S. Highways 169 and 10. Directly adjacent to the property is the currently operating Northstar Commuter Coach and the future site of the Northstar Commuter Rail Depot Station. Elk River is a vibrant community of approximately 20,000 and is the county seat of Sherburne County, one of the fastest growing counties in Minnesota. It is a city nestled between forested hardwoods and prairie along the Mississippi and Elk Rivers. Located 35 miles from Minneapolis, the city is a blend of both rural America and commercial convenience. The site has wonderful access due to the proximity of major transportation thoroughfares such as US Highways 169 & 10 and Interstate 94. The Elk River area has experienced continued strong residential, commercial and industrial growth • necessitating the City to market its available Business Park land for future industrial development. The City is requesting proposals that will maximize the use of the light industrial parcels. Section Two: Information about the property The parcels are available for sale and development. This presents a substantial development opportunity. Adjacent to the property to the west is a wetland area separating the parcel from the BNSF Railroad and US Highways 169 & 10. To the east land is zoned single family residential, south is more industrial and commercial, and land to the north is zoned as business park and to the northeast is multi-family residential. The City has no plans to change the zoning of these areas. The City will complete mass grading, install water and sewer system and develop a regional drainage pond in the business park. Improvements and blacktop are to be completed for buildable lots by Fall 2005. Park dedication fees will be paid by the City at the time of final plat. The development concept works around constraints of the adjacent wetland, gas line and access points dictated by the City's Transportation Plan. As development of the Brown Business Park occurs, Lot 1 is being reserved as a future site for a YMCA. There is a pending development on Lot 7, knowing this proposals may include Lot 7 in • concept with this understanding. Page 2 of 6 The strengths of the site include the following: (1) Convenient access to US Highways 169 and 10; (2) Proximity to Interstate 94; (3) Adjacent residential and commercial base • surrounding the Site; (4) Improved traffic infrastructure that is nearly completed; and 5) Directly adjacent to the Northstar Commuter Coach site and proposed site for the Northstar Commuter Rail Depot Station. Zoning All parcels are currently zoned Business Park District (BP). The District encourages a planned integrated environment for certain industrial, office, and commercial uses that are compatible with and complement each other as well as the surrounding land uses. The intent of this district is that development reflects common themes using compatible architectural design and consistency in signage, landscaping and lighting. It is also the intent to encourage businesses that generate a high number of jobs per square foot rather than predominantly warehouse type uses. For further details please refer to City Code Section 30-1294 regarding permitted, accessory and conditional uses (attached). Section Three: Proposal Criteria The City has a keen interest in maximizing the use of these parcels and fulfilling community needs. The City envisions quality developments that are aesthetically pleasing and fit in with the surrounding business park area. The Goals of the development are: • ■ To increase the city's future property tax base thus reducing future increases in property taxes on current residents ■ To create quality job opportunities for current and future residents ■ To market city-owned business park properties ■ To improve traffic access and circulation to and through the area ■ To encourage a mixture of market-supportable land uses compatible with one another and with the surrounding area. ■ To protect long-term vitality of adjacent commercial and residential areas The City is seeking a creative, qualified developer to oversee the development of the targeted area. The City is willing to consider proposals for partnering with a master developer for development of the entire area or with developers on individual sites. It is important to note that the City will not pay any realtor fees or commissions in the event of the sale of property. Potential developments the City would encourage include, but are not limited to, light manufacturing and production facilities, high technology manufacturing or research and development facilities. The City is not interested in purely warehouse and distribution facilities. The zoning district requirements prohibit outdoor storage of materials and equipment. Page 3 of 6 • Section Four: Timeline • The City will consider all proposals that are submitted by March 1, 2005. The City may have the property appraised and may negotiate a Letter of Intent after reviewing and selecting a proposal. Section Five: Cost/Sale of Land The land sale cost will be reviewed based on the successful developer(s) submitting a proforma including SAC, WAC, park dedication fees, current special assessments and future public improvements and determining the amount a third party would or could pay per square foot of land. Section Six: Proposal Content RESPONSES MUST BE IN THE ORDER AND FORMAT PRESENTED BELOW. ADDITIONAL INFORMATION, IF DESIRED, MAY BE INCLUDED IN ITEM 7. THE PROPOSAL IS LIMITED TO 10-PAGES IN LENGTH. 1. Proposed project A. Briefly explain your proposal. • B. Please include the following items and how they relate to your proposal. If exact figures and explanations are not possible, please estimate using similar developments already in operation elsewhere. 1) Concept plan showing lot layouts and types of uses 2) Building sizes (square feet) 3) Total estimated market value of development at full build-out 4) An estimate of the build-out time for all parcels 5) When including SAC, WAC, park dedication fees, current special assessments and future public improvements, what is the estimate of the amount a third party would or could pay per square foot of land? 6) List the estimated development fees and overhead expenses 7) Number of jobs created 8) Hours of operation 9) Traffic/parking needs 10) Expected noise levels 2. Firm/organization A. How many years has your firm been established as a professional • developer? Page 4 of 6 3. Professional Organization • A. How many people are employed in your firm and summarize their areas of expertise. 4. Experience A. List some of the major development projects your firm has completed in the Minneapolis/St. Paul area. B. List projects similar in size and use to the project you are currently proposing. 5. References A. List references for your five most recently completed projects. 6. Scope and Cost of Services A. List the additional work tasks that you think are necessary to prepare the property for development. B. Estimate the cost development, including land preparation costs, development fee and overhead expenses. • 7. Additional Pertinent Information A. Provide any additional pertinent information about your firm or your proposal. 8. Certification of Information Provided A. The information provided herein is to the best of my knowledge accurate and can be accepted by the recipient first named above as true representation of: Company: Address: Title: Signature: Date: 1111 Page 5 of 6 Section Seven: Proposal Submission • Submit ten (10) copies of your proposal to: Catherine Mehelich Director of Economic Development City of Elk River 13065 Orono Parkway Elk River, MN 55330 Proposals must be received no later than 4:00 PM CST on March 1 , 2005. Proposals must be submitted in an envelope with the words "Proposal for Brown Business Park" clearly marked on the outside of the envelope. Information must be complete. The City of Elk River reserves the right to reject any and all proposals. Faxed proposals are not acceptable. The City proudly welcomes and encourages you to visit our website for additional information at www.ci.elk-river.mn.us. Section Eight: Evaluation All proposals will be reviewed and evaluated by the EDA and they intend to select • developers for final proposals and interviews. Thank you again for your interest in developing within our community. We look forward to receiving information regarding your proposal. Please direct questions about the Elk River Development and this RFP to: Catherine Mehelich Sid Inman Economic Development Director Ehlers & Associates City of Elk River 763-651-8500 763-635-1041 Enclosures: • 2005 Community Profile • Site and aerial maps for the area (An autocad file of the site can be emailed upon request) • Zoning Map and Zoning Code for Business Park District (BP) • City's development concept • Public improvements/utilities located in area • Estimate of future public improvement needs (Public Improvements may include • City assessment bonds) • City Prospect/Inquiry Report 2001 to mid-2004 Page 6 of 6 1// 1of ;1k ,, Business Sites River 13065 ore 1_1_1, kway i / I Elk River,MN 55330 IN –, �� li / ..,_ __S. \ Ir CO RD 33 _AIN e / _— *co . h ii X32 I s ii , ) 2 or'' ❑ UU L. ST.CLOUD ___If..„„ ha 5 $ , E) ( , ,,, 70Ld 1 _,A . ,,,,c==)_. "11 ELK RIVER —Mb 111W4A fa 7' HMI ll'—" ----_-..-__��_ � ELK RIVER IS 40 MII,F.S 1111 -_-_lit _ i FROM ST.CLOUD AICD C . ••a=_ THE TWIN(AIMS �I�s � -,7/ ��t ST.PAUL N lam, ��A) .®Y a �`1';1! �D `\ SCHOOL 3T 'n 4,7 < IL . � )`,� /IIIb►, m=fc ,j' • �` _66 0 — n, '/- z 0 , 722,, .4t, ..„,..„,...„, ,---\ „,,., 16-,:,,-, 1 , :p \ - utia---Flo111111 EI � ., .� �� of A Om- ORD12 —1 --:--)''' -OQ :. 1� fir ?11111 ; el tl 111111 111111 1;119 1111111111111 ;111f1111i111� 19 ,.. r \\ � �1 .. 1 1 1 `t 1 1 1 1 1 1 1 1 i 1 1 i 1 1 ii 1 1 1 1 1 1 1 1! S � ``., �Mt we MS— I"'�', PROPOSED NORTHSTAR CORRIDOR 1 _ t� COMMUTER RAIL DEPOT rn.l.va`.• CITY PROPERTY ,� 76 ACRES - SANDPIPER BUSINESS PARK med- \ 1p, 18 ACRES / Ave \`? - ELK RIVER BUSINESS PARK r.'' \., issmevs �` 25 ACRES 1_ � w. ELK RIVER EDA PROPER MS- 45 `45 USEABLE ACRES OUT OF 90 rO ELK RIVER BUSINESS INCUBATOR 11 li _ _ / . O NEW INDUSTRIAL DEVELOPMENT 1 17,.. EXPANSIONS I RETENTION I. ; i f ,. ! - \!` IPFor site specifics call the Economic Development 1 – Department at 763-635-1040 1 I ' I 11 1 MN— Phone:763.635.1000 Note: This map does not show the entire 1 1 ki 11 11 1 1 1 II t Fax:763.635.1090 city limits of the City of Elk River. 1 1 I WI I € I www.ci.elk-river.mn.us '--IU Ll11LJ L`I-DRD I . R�pD ._,..111MLIE L.17LF. .I 3RD ST) 9'Z �. ��4 '„�IL� ,,r ,-, swum i i7m2 i. ."�. II .a \:eft , . .5 1�1i i .�,.. �� mug 111"� N1���� 740A_11111211: i��'����`'R� , � r,���I ,l,,--- 8 O ► A1 �'� 1gatifrowotf. r 14 ��; ' ` 1 iii84',aliii■i = �� •_. ! ��► o\inn�� �I + �� g.rr�yr� �..-/1:_�� �_\_ _ `0 Via' � 111.111 . �Fi��-.�U�, •, �� ....;_: -_ _�� — u; rs.t� E ,1� �., �PARc iii \� O ink. 11111111///4.'46412 HOHLE ex To ��j ooro00`III�+;",,a,I�-0.r __IGI„I►1/►►/// uPA ®©� �1� �� L. 11!.q 1/4 \ _ .0 it � :I' 'f�j =�mss! / \-\\ o ■\����� Hid 1 �����wO iiis °'?% ! C !-•Aa�-I 111°121441�= — HILLSIDE I Q IIIII 9 �� ft .usTRiAL�L� I oo :,,, CITY PARK 178TH 111 \� yi 1• 111��= pg' 1,\ \ , 177TH �� SITE I 176TH 1111P7''lt/ 111111-Hillill0\\\11. `4 PROPERTY , z 175TH ._ \ tilig_ - �/ 11111 175TF • 174TH 70614.*A �.71 ATE) 1 ©� co 173RD � , , �® wo ~ a. RI R172ND ;`� PARNE.... v ,, ! ' AND RIDE K N k riArr -."' mom VI71 Fr 171ST � 1 e: Illr crO Lu 170TH \to Lu 1,`°''' Rpr Yc , cc Fill 0„,t,oR 169TH ==i -_ lg M� �ng 168TH I• I61TI NnME J,,, 4 Location Map N - City of El , River Case Number: EDA BROWN PROPERTY (��f/� ,\tet,,1,/ -i�I\� -'�'/u,',,\. \ 1 III I �� 4 f,,lll AV,1;//:-..'_: /` ty� -\��111AA�1:\_ ' : Itll ,' `, A-_ , 10 1,,,�'`\,'.. 1 _',/,Il (r„,'--\s\,I 1 ` ``--- 1,'1, III \ " / _I 11\ T gill I \ -- ; j.,::;','-;','", Ili 1 1 iiii \ '''. ;\ ,, 1 I' 1 , ' t � \= ,,,114 ` ' \' ; , ,,__ p , � „��_ ,, I I _1 a�' Sa d M ; N 0 e-i. - _ ao �� U Z /...?„,,, .✓i moi, �� 11 /l l 6 • tri‘; vNN N \ ,II ID ,I �•-',',/,'",/,i7/1 /,I,/ii/ l Zq N 4 '- f� a �,� f/ 7,';','',''',','27 , \ r i /'‘'C'''''''-'' ''/ /. ' ' " il'i/ it ;';'/,','' /,' /,' , — / ) it17 c".7 '1 /'''' -% i anon I / / / ' tt H` 111111 I JI. 1 II / / /I ' %/� hU / �' / /. _I -_ I / i �, t // / �o� \ it i ,` / /.. • j.7rf7 c r /\\ _ - i 1 O�It 04"-% ' ,� ' \ 's 1 , ...,.1.,. . /`� / / , /111 N , ' ` K" Q( z - I! \.'‘ ',, :,,,t,_„/, S* , , , , ,,71\\.....0 111 , ,',- 9 � '-�" t, 1110 I) 1 �► /'� „i , ZANE AVE. Ili( 6r 4 ri • A 1 ' •1 0 vie • . 7. 07 • _ e �__ Q •• i s `d ' 41# c. 1 , • 4 .. rl t a - • . l fi: . - SITE 4 : ,44,;.? • 1 1 ile / T 1 a `• .•, II - • • _ . 0 + .........,,,. ...44 . ..,„ .. _ City of Elk River-- City of Elk River EDA Property Page 1 of 2 110 pity a! `�' .��. 'ver Home City of Elk River EDA Property News & Events - . _ ; P Vs� l v t, •'i: V\TI CONCEPT PLAN (_ • \ lb \„ \\ OCTOBER 2002 �.._ c Government 1 \\\ \\ . . : , 3 <`�\ \\ • •�V NM NM Mt MS / i \ •�. c ill NMS \ Documents J ,\ . •'= ""5=6 --- 7 \tipcT� j' ti ;A ° .: l Departments l . .. Administration 3 la\ l� ,� . Building \ 4o \ - Cable N io c Economic �,\\ \ ;, ,� • Development t� f'�y�\\\ ,:Alio •°� • Finance _ �' \\` �';� . .\.\\ ` Fire j \ \ -- Liquor Store \ o \ \ i t Parks & Recreation - • , i ,.! -*-�- �,{ • - Plannln 1 +�sRo nverai ` — '-a. . - Streets Recycling Clickon map to enlarge-Printable map link below Utilities Description: Wastewater This property, owned by the City of Elk River Economic Development Authority (EDA), can be accessed by four-lane Twin Lakes Road, which is located at the northeast quadrant of U.S. Highways 169 and 10. Services Total Acreage 90 Available Acreage 45 City Code Zoning Business Park Land Use Light Industrial Water Provider, Static Pressure City, access-Twin Lakes Rd, 57 psi-62 psi Links Sewer Provider, Size City, access-Twin Lakes Rd, 18 inch Electric Provider, Voltage Connexus Energy service area Natural Gas Provider CenterPoint Energy Search Copper cable placed along East Communications side of Twin Lakes Rd. in 2001 (Qwest) GO Fiber optics available (Northstar Access) 0 •,Full Site Fire Insurance Class Rating 3 Water Fire Flow 2,700 GPM This Section Road Design 10 ton (all adjacent roads) Ownership City of Elk River EDA http://www.ci.elk-river.mn.us/index.asp?Type=B BASIC&SEC={43DB813F-A8AE-49BF-... 2/8/2005 itikk River 13065 Orono Parkway Elk River,MN 55330 February 2,2005 File: 819610J-0030 Ms.Catherine Mehelich Director of Economic Development City of Elk River 13065 Orono Parkway Elk River,MN 55330 RE: ESTIMATED BROWN PROPERTY DEVELOPMENT COSTS • Dear Ms.Mehelich: As requested,we have revisited our previous estimate relative to the full development of the Brown property located along Twin Lakes Road. Our previous estimate of development cost was in a letter dated November 26, 2002. We have re-analyzed the costs based on an exhibit prepared by Chris Leeseberg labeled "EDA Brown Property Option No. 2". For purposes of this estimate we have assumed that it would include preparation of a grading plan,preliminary and final plat, and lot staking, along with design of the improvement, going through the 429 assessment process, and all necessary construction services. Generally,the improvements include a watermain loop through the property, starting at Twin Lakes Road and 1751h Avenue intersection and terminating at the north end of the property,tying into an existing stub off of Twin Lakes Road. The sanitary sewer would also flow from the intersection of Twin Lakes and 175`h Avenue and be extended to the northernmost lot labeled No. 1 on the exhibit. For storm sewer purposes we have assumed that the existing storm drainage pond located adjacent to Lot 1 in the northern part of the property would be expanded slightly to the east to accommodate all ponding requirements for the development. Storm sewer would be extended from the southern part of the property along the road right- of-way,ultimately outletting to the expanded pond. Finally,the street costs represent an urban style roadway 38 - 40 feet in width with concrete curb and gutter and sidewalk along one side. We have not included street lighting or boulevard tree planting in our estimate. Based on these assumptions as laid out above,we have estimated the construction and development costs as follows: • Phone:763.635.1000 Fax:763.635.1090 www.ci.elk-river.mn.us Brown Property February 2,2005 Page 2 i Sanitary Sewer Improvements $66,000 Water Improvements $110,000 Storm Sewer Improvements $144,100 Street Improvements $297,000 Site Grading and Pond Expansion $253,000 Estimated Construction Costs $870,100 Construction Contingencies (5%) $43,500 Overhead (28%) $243,700 Geotechnical Investigation $9,500 Wetland/NPDES Issues $5,000 Platting/Lot Staking $33,000 TOTAL DEVELOPMENT COST $1,204,800 We have in our files a hand sketched drawing of the proposed improvements as listed above. If you would like to review this or have any questions regarding this information,please call. Sincerely, • Terry J. aurer,PE City Engineer • S:\Engineer\2005 Letters\02 02 05 Brown prop.doc 4 ARTICLE VI. ZONING* Page 1 of 5 ' E • Sec. 30-1294. BP business park district. (a) Purpose. (1) The business park district is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with and complement each other as well as the surrounding land uses. The underlying land use designation within the district may vary and may be either light industrial or highway business. Development within the business park district will correspond with the land use designation. Industrial and office uses are allowed where the land use designation is light industrial, and commercial uses are allowed where the land use designation is highway business. (2) It is the intent of this section that development reflect common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number of jobs per square foot rather than predominantly warehouse type uses. (b) Permitted uses. Permitted uses in the BP district are as follows: (1) Permitted uses allowed when the underlying land use is light industrial are as follows: a. Light manufacturing. b. Research and development laboratories. c. Government, business, and professional offices. d. Mail order operations. e. Telecommunication operations. f. Sherburne County fair. g. Warehouse space not exceeding 50 percent of the entire building. h. Showroom space. i. Repair and maintenance, excluding auto repair. (2) Permitted uses allowed when the underlying land use is highway business are as follows: a. Health athletic clubs. b. Personal service establishments. c. Financial institutions. (c) Accessory uses. Accessory uses in the BP district are as follows: (1) Off-street parking lots or facilities. (2) Private recreational facilities. (3) Public shelters and essential services. ` (4) Retail sales, provided the following conditions are met: • a. The retail sales activity shall not be located in an administrative office facility, but shall be located within a business, the principal use of which is not commercial sales. http://libraryl2.municode.com/gateway.dll/mn/minnesota/203 6/2075/2081?f=templates$fn... 1/24/2005 ARTICLE VI. ZONING* Page 2 of 5 4 b. The retail sales activity shall not occupy more than 15 percent of the gross floor area, or a maximum of 5,000 square feet of the occupied quarters, whichever is less. c. The retail sales activity shall be related and subordinate to the principal use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. e. Freestanding retail shops and stores shall be limited to those which complement other uses within the business park and provide a service to those other businesses, and shall not exceed 20,000 square feet in size. f. Retail/wholesale sales incidental to products manufactured, assembled, or warehoused on the premises may be permitted as an accessory use provided no more than ten percent of the building is used for retail/wholesale sales. (5) Therapeutic massage when offered within the confines of a medical or chiropractic clinic. (6) Temporary signs as permitted in section 30-851 et seq. (7) Permanent signs. Not withstanding the provisions of section 30-850 et seq., the following requirements shall be met: a. All freestanding signage shall be of a monument style sign and have a maximum size of 64 square feet and height of eight feet. • b. One on-premise business wall sign per occupancy, not to exceed two square feet in sign area for each linear foot of the building frontage up to a maximum of 128 square feet per occupancy is permitted. (d) Conditional uses. Conditional uses in the BP district are as follows: (1) Conditional uses allowed when the underlying land use is light industrial are as follows: a. Warehouse space exceeding 50 percent of the total building floor area up to a maximum of 65 percent. b. Vocational, technical and trade schools. c. Loading areas/overhead doors when located in front yards. d. Aboveground storage tanks. e. Government buildings and facilities. (2) Conditional uses allowed when the underlying land use is highway business are as follows: a. Hotels and motels. b. Licensed day care facilities. c. Retail shops and stores which complement and serve the business park, subject to the standards set forth in subsections (c)(4)e and f of this section. • d. Motor vehicle specialty service stations. e. Loading areas/overhead doors when located in front yards. http://libraryl2.municode.com/gateway.dll/mn/minnesota/2036/2075/2081?f=templates$fn... 1/24/2005 ARTICLE VI. ZONING* Page 3 of 5 f. Class I restaurants. (e) Additional standards. The following additional standards apply in the BP district: (1) Loading spaces and overhead doors. a. Loading spaces/overhead doors shall be located in designated rear yards and secondarily in designated side yards. Loading areas/overhead doors shall not be located in designated front yards unless approved as a conditional use. b. Loading spaces and overhead doors shall be designed to be compatible with the principal building. Architectural techniques and landscaping shall be employed to reduce visual impacts from adjacent properties and roadways. (2) Dumpsters and refuse enclosures. a. All dumpsters shall be completely screened from public view by using enclosures constructed of similar material as the principal building. b. Refuse enclosures shall include gates and be located in designated rear or side yards. (3) Rooftop or ground electrical equipment; signs. a. All utility equipment shall either be: 1. Screened from the eye level view of adjoining properties by use of exterior walls and/or landscaping; • 2. Painted to match or complement the building structures; or 3. Incorporated into an architectural design, as approved by the building and zoning administrator. b. Notwithstanding the provisions of subdivision II of division 5 of this article, the following requirements regarding signage shall be met: 1. All freestanding signage shall be of a monument style sign and have a maximum size of 64 square feet and height of eight feet. 2. One on-premises business wall sign per occupancy, not to exceed two square feet in sign area for each linear foot of the building frontage up to a maximum of 128 square feet per occupancy, is permitted. (4) xterior building finishes. a. It is the intent of the city to promote and encourage high standards of creative architectural design in the business park district. b. In the business park zoning district, the following are acceptable building materials and finishes: 1. Brick. 2. Natural or cut stone. 3. Integrally colored split face (rock face), burnished, or glazed • concrete masonry unit (excluding plain or painted). ( 4. Integrally colored and exposed aggregate precast concrete panels (excluding single-T or double-T panels, plain, uncolored, or http://libraryl2.municode.com/gateway.d11/mn/minnesota/2036/2075/2081?f=templates$fn... 1/24/2005 ARTICLE VI. ZONING* Page 4 of 5 raked finish) or specially designed, cast-in-place concrete. 5. Glass, architectural metal, fiberglass and aluminum, provided • such panels are factory fabricated and finished with a durable nonfade surface and their fasteners are of a corrosion-resistant design. 6. Stucco, E.I.F.S., and other cementitious coating. 7. Wood, provided the surfaces are finished for exterior use or wood of proven exterior durability is used, such as cedar, redwood, and/or cypress. 8. Other materials determined as acceptable by the planning department. c. Major exterior surfaces that are adjacent to any public street, public trail/path, or adjacent residentially zoned properties shall be of one of the acceptable materials and shall be combined with at least 30 percent of one or more acceptable materials, or with 40 percent punched openings, with or without glass (or as much as allowed by the Uniform Building Code, whichever is less), neither of which are to be concentrated in any one location, unless to accentuate a design feature. Major exterior surfaces that are visible from but not adjacent to any public street, public trail/path, or adjacent residentially zoned properties shall be considered transition walls and may have less than the 30 percent combination or less than 40 percent punched openings, but either shall not be reduced to zero percent). Reductions below 20 percent shall require staff approval. Such walls shall be screened from view with additional landscaping. The • + requirement to have at least 30 percent of one or more acceptable materials shall not apply to the loading dock wall. d. Major exterior surfaces that are adjacent to any public street, public trail/path, or adjacent residentially zoned properties shall not exceed 160 feet zero inches in length without a minimum four-foot depth change (recesses, protrusions, or a combination thereof), with at least two feet of such change to be in the entire height of the facade. e. Alternatively, exterior wall surfaces are to be designed with architectural interest through multiple design techniques such as, but not limited to, architectural forms, reveals, textures, cornice detailing, changes in surface planes, color, punched openings and/or changes in parapet elevations. The use of design techniques alone or lower percentage of additional acceptable materials noted in subsection (e)(4)c of this section shall require site plan review and approval by the city planning commission. f. The building shall be designed so as to prevent the appearance of straight, unbroken lines in the horizontal and vertical surfaces. g. Main entrances shall be emphasized with a complementary material which is different from the primary building material. h. Garage doors shall have a color that matches or coordinates with the building's primary body color. i. The building shall be designed to screen equipment located on the • roof of the building. Alternatively, such equipment shall be located in such a manner so that it cannot be seen from the adjacent public street, public path/trail, or adjacent residentially zoned property at the same elevation http://libraryl2.municode.com/gateway.dll/mn/minnesota/2036/2075/2081?f=templates$fn... 1/24/2005 ARTICLE VI. ZONING* Page 5 of 5 of the first floor of the building. (5) Landscaping. Notwithstanding the provisions of subdivision IV of division 5 • of this article, the following requirements shall be met: a. Of the total number of overstory trees required, a minimum of 25 percent shall be ornamental trees and 25 percent shall be conifer trees. b. A landscaping credit of up to 25 percent may be given to a site plan which contains exterior sculptures, fountains, ponds beyond those required for storm drainage and other site enhancements as approved by the building and zoning administrator. c. Underground irrigation shall be installed within the front yard and all landscaped areas adjacent to a public right-of-way. (Code 1982, § 900.12(16); Ord. No. 00-11, § 1, 6-19-2000; Ord. No. 00-16, §§ 1--3, 9-18-2000; Ord. No. 01-13, § 1, 8-20-2001; Ord. No. 02-01, § 1, 1-22-2002; Ord. No. 02-04, § 2, 4-15-2002) Editor's note: At the city's request additional material was added to subsection 30-1294(c)(7) which expanded this subsection with a., b. Secs. 30-1295--30-1310. Reserved. Subdivision II. Dimensional Regulations • Sec. 30-1311. Principal structures. Principal structures shall comply with the following dimensional regulations: TABLE INSET: Building Setbacks Front Side Garage Side Rear Maximum Height Minimum Lot Requirements Maximum Lot Coverage (feet) (feet) (feet) (feet) (feet) 1-1 1 1 acre 30 25 20 40% 45 100'width 1 acre 60 1-21 100'width 30 25 20 40% BP 1 1 1/2 acres 35 20 30 40% 45 1 Must hook up to city sewer and water if within the city sewer district. (Code 1982, § 900.18(1)) • http://libraryl2.municode.com/gateway.dlUmn/minnesota/203 6/2075/2081?f=templates$fn... 1/24/2005 wifk River Economic Development Department Inquiry/Prospect Tracking Report 2001 2002 2003 Jan-Aug'04 Total Inquiries 75 48 75 67 Commercial 30 17 29 21 Industrial 45 31 46 41 Light Industrial NA 21 34 20 Heavy Industrial NA 10 12 4 Distribution/Warehouse NA NA NA 3 Commercial-Service NA NA NA 14 Other NA NA NA 5 Nature of Light Industrial Inquiry Lease Space 12 6 10 6 Land/Building ' 28 13 9 13 Other (info/$) 5 2 11 1 1 • Light Industrial Size Small (Less than 10,000-s f) 16 5 5 8 Medium (10,000-sf to 29,000-s f) 10 13 9 5 Large (30,000-sf+) 13 6 6 5 Other (spec/info) 6 3 11 2 Active Prospects 10 7 6 9 Located in Elk River 2 1 2 3 Clearwater Interiors—retail,lease Arrow Building Center—retail, lease Dimensional Concept—industrial,lease Lake Assault Boats—industrial,lease Orluck Industries—industrial,new Gradient Technology—industrial,new Display Solutions—industrial,lease Sportech—industrial, expansion NA/Unknown 29 10 19 Located Site Elsewhere 7 5 3 2 • Big Lake 2 1 Ramsey 1 Other 5 4 2 2 S*EDA\PROSPECT\2004 Inquiries\2001.2004summaryrpt.doc EHLERS • & \ SSOCI - ES INC MEMORANDUM TO: City of Elk River-EDA DATE: March 14, 2005 FROM: Sid Inman, Ehlers and Associates Inc RE: Proposals for EDA Brown Business Park Land Development The purpose of the Request for Proposals process is to assess the market interest, financial feasibility, and concept compatibility with the EDA's original development concept. The EDA received two proposals for the development of the EDA owned Brown property. Attached is a side-by-side comparison of the two proposals. One of the first questions we tried to determine is"why only two?" In checking with developers they gave a number of reasons why they did not submit a proposal. Most said they were too busy and had other larger projects. Some stated that they were nervous of the market. We checked with three other cities that had just finished an RFP process and they all had similar results. The two developers that did submit are experienced in park development and have good reputations. In reviewing the two RFP's it may me helpful for the EDA to review the objectives and goals it had in developing the park. OBJECTIVE: To attract light industrial users to Elk River. GOALS: 1. To increase the city's future property tax base thus reducing future increases in property taxes on current residents. 2. To create quality job opportunities for current and future residents. 3. To create an increased customers base for retail business. In reviewing these proposals the EDA has a number of options to consider: 1. The EDA chooses to interview one or both developers. 2. The EDA selects one developer and directs staff to begin the negotiation of a master development agreement. 3. Reject all proposals. The last option was included because after the analysis of risk and reward that the EDA may determine that it would be better off to develop the park itself under a concept with a determined criteria and assistance amount for any developer to build. I will be at the EDA meeting to discuss this further. • OJ UY YaQ a) o O _L O ). aCo-O T D a D- '� N a C 3 -CTSca = > O a < 3 1N (} _C 0 a0 Y 0 ° 0 -c _o a c _, al o o m N u) u) p .- O ° COmrn -O o a Y c '° C a) a) -p O T W a) o a7 CO O 0 N O a) a U) a5 a) E _° O > C c) r C c6 O a) 7 p �°> — - a' c = . a O al = E J y C E N o y0 E ) U U ,- N C a) D as 06 c c m a) a O. cn O N a) .0 _c o O ns T .� N O D U D ° E L,_ w uY iu E ° w S > >> . C ° LI) a.)i 0J a a) a) -c _ c o m C 0 ro w0V) .O. a) c c i 0 a- .— . . o °° - . o n i coN + 0) CL ° i CO 0 RS>' -eaoro Cg xo co co hU) fl- Nroic O U c _ m N _c _o j in 5m y y cO - E 'E. Cl) E Q 310 as ° _c ° ° c -c' W O o 0 °ac° ° w o ` -o a) a) Co oU) LL LU 1/.. a) w ° c COrronw w am MS C 0 C �O 0 Co N O E co .5 - a) N X o a) a) O v m o -50-or ` >, a) E So -c aaci m2 ao cn . am E cn c D cn 7 ao Q Lc) r V L 7 O N a O r O CO O Q N O O CL : 000 on' �w c� ° L00 3 U : L •L itr a 6 C CL c c mc — Y .° N a Q) Cn O -p O > • O.N o ro a p ns CD O v O - O a CON- m rQO Oro i '75 aE J0 r Nao'D acc a) d. a73 a 1co m1:3,, ,. ° ° O • N.ol Q J as U+., Q E c 2ip 0 = L U n '5 ao D O C N U •- rL C_ {l w ' 0 C N .c C > L1 1 a C E > u) 0 0 _ L J Uj CL O to — N E c C ° 0 >, N O 3 d �y 'N O p) (15 ` ___., u) -0c5 in a C C) C7 Q In O Q C r a»- c ° 0 iCD in a) a• yi 0 0 u) v? 0 u) MO fl. a -5' cii �i cn o I2 S E ,o m R R v7 0 c CO W i O a D 'p a3 Oi 'pii_ p F- Q. U t7 O Q. Q U a V a) D aS N D 0 7 N - cn s=a a) ° •C N M r O a) d r N .1- .0. M ro c E a) m 0L0 � � D � - > E � � vr � � 9 C p 30 7 c o O .0 (D i C a.� c a) a J W 0 c E a) 3 a m 7 m o >, 0 0 ° w LL w LL LI- CZ cC V ° O 7 C O (LS a a) '0-- a5 x in j U) co V) U) V) 0 (/) C C c U. CC 0 C N ` O o `6 r o o o > a N N N d N _ _ a s a a s a ° 0 3 $t co N- o CO CO 0 Y D °- Q >' E c.:.' O O ,_,,,i. m O M r �_ a) O y in V O Un CO y Cn a) 0 CO N 7 rn co w U) a) 0 0 0 0 0 6 ,- O O : • Y LU N 63 CO - U • N • (/) ER 7 Z () E Efl Efl ca aft cn C EA -0 v) co CO • Q J J C N Q Q E E W ozs 0 h w 0 i _ (SI m �. o m E W m m ° .n 4 c o a) cn m e m `o -c m as a Q. W E a) a CO ani ° Li) U o023 • m 3 m o o 0 o ro Q p m p m 0 o O O as W o U W --I E W CO W a) a a -o E cn > a s Q Q • ro Q ami ° a 0 v) o m cca ca CIO o o O O a CO W -a O, W W I- W I- W a a a. a a a a a Proposal for Brown Business cWyo • Ek Park River a a a a a a a a a a a a a a a a • Proposal for The Sale and Development of Brown Business Park a Specially Prepared for The City of Elk River AA/ICON CBRE H K CB RICHARD ELLIS • 117) Cffy of ti IP Elk River EDA—Brown Property El "' River TABLE OF CONTENTS Tab 1 Proposal for the Sale and Development of Brown 121 Business Park Tab 2 Sources and Use Statement Tab 3 Experience Tab 4 References 0 0 4) Tab 5 CBRE Land Services Group Marketing Proposal Hoisington Koegler Group Inc. Firm Description AMCON CBRE H K 0 CB RICHARD ELLIS d City•;.L of 1 !a Elk River EDA—Brown Property EZ River i • D ® PROPOSAL FOR THE SALE AND DEVELOPMENT ® OF BROWN BUSINESS PARK ® I. Proposed project Our proposal envisions a collaborative effort between three highly skilled private companies that specialize in their respective professional services. ® A. Briefly explain your pro- Notwithstanding,we believe the Elk River Economic Development Authority to be posal. a partner as well. DWe propose to work with the EDA to obtain the following objectives: ® I. Provide value to the property by using the professional skills of the partners to obtain the EDA/City objectives. ® 2. Provide accurate views of the market,market forces,and privatization of the development. CO 3. Provide sales and marketing skills dedicated and committed to private enterprise deal making. D4. Maintain a sense of ownership and value to the EDA. Firm Task: Provide innovative planning and landscape skills in developing a unique O business park within the existing environment. DFirm Task:Provide professional sales and marketing through key individuals that share in national and local resources in the brokerage of real estate. O III Firm Task: Provide accurate and up-to-date pricing information in construction and 0 development. B. Please include the follow- A successful development depends on a review of the market in conjunction with CO ing items and how they the City's goals and objectives. From our experience in working within the East relate to your proposal. If Business Park,the zoning is quite descriptive(as well as restrictive)towards market COexact figures and explana- realities in development. Only one lot has developed as shown on the approved tions are not possible, plans, which happens to be the development-owned speculative building. As a D please estimate using result of the current market and business park zoning, projects and proposals similar developments continue to conflict with both planning and economic development goals; hence, Dalready in operation else- tax base and jobs have gone elsewhere. where. D Recommendation: Working with Hoisington Koegler Group, CB Richard Ellis I. Concept Plan Showing Lot Layouts Se.Types of and Amcon Construction Company,the EDA can establish development guidelines D Uses that seek to achieve their objectives. Different site plans showing innovative features coupled with an in-depth market analysis. Examples might include a O "green only" business park or an "energy" site. Coincidentally, a theme business park/project may conflict with existing economic development and planning goals, Dyet,the marketplace may respond to such a planned amenity. DWe propose a land planning study in conjunction with a market analysis to produce up to three site plans that can be associated to development pro formas. DWe have based our proposal content on the planning/predevelopment results © provided in the RFP. D II/ D ANCON CBRE H K D CB RICHARD ELLIS cy • Ciy .......,_ o! \. Elk River EDA—Brown Property E� O River C PROPOSAL FOR THE SALE AND DEVELOPMENT OF BROWN BUSINESS PARKIP I.B.—Continued We have used the 40% floor-area ratio contained in the zoning. All private 2. Building Sizes developments seek to maximize the available land for development. We believe the EDA should adopt this philosophy understanding that we balance the objective by sensible planning and economic forecast. C 3. Total Estimated 40% of floor area ratio figures multiplied by an estimated building value for tax Building Value purposes of$55 per square foot including land. $43,010,000 4. An estimate of build- To avoid false expectations,we believe too many variables and questions remain to C out time for all par- have an accurate prediction. However, based upon experience in other areas and celsin Elk River proformas containing a three to five year build-out time appears C reasonable. Yet, a single, highly subsidized project, could be completed by the end of 2006. a 5. When including SAC, $1.75 per square foot depending upon the ultimate absorption rate the WAC,park dedica- development wants to achieve in relation to the development immediatelylir • tion fees,current adjacent to this project. special assessments a and future public improvements,what C is the estimate a third party would or could C pay per square foot of land? Illir 6. List the estimated See Tab 2—"Sources and Use Statement" development fees and overhead ex- penses 7. Number of jobs cre- The number of jobs created shall be determined by the market. We have used the Q ated floor area ratio of 1.5 jobs per 1,000 s.f.to determine an estimate of 1,173 additional jobs. 1111 8. Hours of operation Construction hours are controlled by ordinance. Using a global marketplace ID standard,it is anticipated that any and all projects may have some type of 24/7 operation but not at full employment levels. Ii 9. Traffic and parking While controlled by Ordinance,the ultimate perception of adequacy lies with the el needs market and/or user. Positive and negative attributes must be addressed in an overall market analysis to be completed by CB Richard Ellis and Hoisington iti Koegler Group. 10. Expected noise lev Controlled by Ordinance. ID • els AID AANICOIJ CBRE H Kle CB RICHARD ELLIS gin . 6 CMy of 6 Elk River EDA—Brown Property El River 0 411)a r,,. PROPOSAL FOR THE SALE AND DEVELOPMENT ® OF BROWN BUSINESS PARK II. Firm/Organization 33 years If A. How many years has your firm been established as a 111) professional developer O III. Professional Organization Thirty-seven construction professionals are employed at Amcon on a full-time A. How many people are ern basis. `" ployed in your firm and summarize their areas of Principals 4 ® expertise Project Managers 6 Project Field Superintendents 10 0 Registered Architects 4 Registered Engineers 2 0 Business Development/Marketing 2 Support and Administrative Personnel 9 0 IV. Experience A. List some of the major See Tab 3—Project Experience 0 development projects your IP firm has completed in the Minneapolis/St. Paul area B. List project similar in size 0 and use to the project you are currently proposing. ® V. References See Tab 4—References aA. List reference for your five most recently completed O projects. VI. Scope and Cost of Services Task I: Interview with staff,consultants,EDA and City Council to expand ideas 111 A. List the additional work presented in this proposal and to agree upon expectations,goals and tasks that you think are objectives. 11/ necessary to prepare the Task 2: Separate one-hour work sessions with EDA and City Council to property for development understand the details of goals and objectives. 111 Task 3: Negotiate a Letter of Understanding and Work Parameters ® Task 4: Develop three concept plans with exhibits,proformas following expressed development objectives. Task 5: Submit implementation plan that shows schedule,development rights ® and terms,specific financing plan,and other terms associated with applicable agreements. B. Estimate the cost develop- We used the existing plan and city engineer estimates for costs. In addition, ® ment,including land prepa- rationdeveloper overhead, interest carry and other cost are shown on the sources and costs,development uses statement. In an arrangement where the developer acquires the land the fee and overhead expenses Brokerage Commission Fees are based upon market rate splits for owner III represented clients. i.„ 31 AArAcoIJ CBRE H K A CB RICHARD ELLIS 41 City Elk River EDA—Brown Property El 41 III River 414 PROPOSAL FOR THE SALE AND DEVELOPMENT 4 OF BROWN BUSINESS PARK VI.B.—Continued We believe savings can be accounted for in the site development costs, , commission and interest carry depending upon the land transaction arrangements. Developer profit is indicated by overhead, construction profit is contained in site 4 development and professional planning is in consulting. 4 Other than the city applied fees,no fees for city consultants are considered. , VII.Additional Pertinent Informa- See Tab 5—CBRE Land Services Group Marketing Proposal I tion. A.Provide any additional perti- nent information about your firm or your proposal VIII. Certification of Information Company: Amcon Construction Company,LLC i Provided Address: 1715 Yankee Doodle Road,Suite 200 I • Eagan,MN 55121-1616 Title: Director of Business Development Signature: .`"t Date: March I,2005 • AAACO CBREf Bu CB RICHARD ELLIS 3 lk4---N 3 \ City of 3 Elk River EDA—Brown Property Ed... "'-'- al. River 3 • 3 PROPOSAL FOR THE SALE AND DEVELOPMENT OF BROWN BUSINESS PARK 3 A.SOURCES City Concept Plan 1 Market Value Taxes 3 LOT# Acres Square Feet based on FAR Price Revenue obs* Purposes** 8.75 152,000 $76,230.00 $667,012.50 228 8,360,000 rti I 2 3 52,000 $76,230.00 $228,690.00 H 78 1 2,860,000 3 3 2.2 4 2.2 38,000 $76,230.00 $167,706.00 57 2,090,000 38,000 $76,230.00 $167,706.00 57 2,090,000 3 5 1.67 29,000 $76,230.00 $127,304.10 44 1,595,000 6 1.78 31,000 $76,230.00 $135,689.40 47 1,705,000 3 7 12 209,000 $76,230.00 $914,760.00 314 11,495,000 8 3.4 59,000 $76,230.00 $259,182.00 89 3,245,000 0 9 2.7 .,.. 47,000 $76,230.00 $205,821.00 71 2,585,000 10 7.3 127,000 $0.00 $0.00 191 6,985,000 TOTAL 45 I 784,000 $686,070.00 $2,873,871.00 1,173 43,010,000 0 `13.USES 0 Land Acquision 4 0 111° Land price li $630,000.06— Closing costs $22,500.00 0 ,Loan placement $33,000.00 , -I Sub total net $685,500.00 0 1 Less Expenses: 0 Site development costs $1,204,800.00 Site pad preparation costs $65,000.00 0 1 ILegal(develop,platting,\site sales) $36,805.37 __ 0 --- ,lLiability insurance $9,208.99 City approval fees $140,000.00 0 Interest carry $138,020.13 4Developer overhead(year and a half) $64,409.40 0 _ Site taxes during sales period $9,208.99 13) rite sales commissions(10%) $287,387.10 Site sales environmental work $6,906.74 Title,Deed taxes,recording fees,etc. $36,835.97 - Miscellaneous fees/consulting/contingency $45,935.38 $2,044,518.08 CO _ $2,044,518.08 $2,730,018.08 CO Net $143,852.92 • *lobs figured @ 1.5 per 1000 s.f. **Calculated @$55 s.f. 1 1 is 111 AAIV1CON CBRE H K D CB RICHARD ELLIS g " i Ca a I II \1II '1- 10 ,c � : , (" ILII 1, 1 << 1 I1 1: jl \, IIII -_-I _ ,Alli ...I :i I o N \ f• - ... I sir __ '4 - II -— \r N I 4 141. I I X111"\'fl, \ N \ r (i .\ /I, 1 \ d-o(CE,...1:‘, \ `V , — .� /44I • { / / I wx I• .I (c' '1h iY� ,M !. 1. I. II , �X L ///.r N ) C (V / _ FINE �.L_ / q. O Y __ __ _-_ _ (V p M _ _ .ems- _ A.. • —1—:. --- . __—__-7,-",•.71"2-- --1111 --� '..11:—.—.-----=-------=----• / -1119 -1 _ •I 3 I W z /y •• i. i '_ 11111 Q..' 411F#IIIIIIIIIIII , L ® Hf}I+ff♦#H411{iIN♦}fiHHllfkl$Ii li{IIIIH}}flf{IfIItIfII�IIIIICiI!IIIIIfHffH / �� r �p III u, \'/\1 / \ • 1 r /; r' 1 ' ‘t,""'‘‘,‘,1 '� ,/�.X • �J, / \,.‘', ,',.":',"7:, V:\s",:‘,:',' ;,' ' ‘‘ , '7 • "SO ': ',\ i ' P,' .t I' ',„",:;,:%,:i• �` r. C', O O € 1Q ,1 ( JI` \\�ILI11: _ J I� - NF AVE. A 1 ( - -- I Z 4-4 ral s p. 73 ri City of Elk River EDA—Brown Property El River r) • 73 73 EXPERIENCE—INDUSTRIAL DEVELOPMENT PROJECTS r) Amcon has a long tradition of providing industrial projects for build to suit clients 0 as well as developing business parks with private or public partners. 0 Most recently, Amcon Construction Company has developed Lakeview Industrial Park, Wyoming Industrial Park and the Elk River East Business Park. A few recent 0 build to suits are also exampled. 0 Lakeview Industrial Park �� U 0 ,,e" ••N;'� . e\ Vo-', =.k :y fir, Chaska, MN H1.,ti -� \,` ,:,. ttr.NV220- '411"" ,,, , , - --.:-..4.7;,-- 4 Hazeltine Lake ',....,., ` ry v � JJ O iio .,,„c:,,,, . , , -.,,, , . t .,„...,„. o 4 s �� . ili., '' ' :';:,,, ' ‘, it ,-..—''74:,,‘,' 17,/ ' .0.'" A, NaPC V_L!Gnw Cw QSORail T 'p 110 Elk River—East Business Park _#•• ., Appe e6 4 ,�` 8•.,4,i4 ; Furniture Rebid r t' Elk River, MN �''`�j i �� •.•1 � �� Off' '+ S18 a S t • f A•amhla A ; P p t. 0 • d • • • ,: -:'''''','„1.1,%_ 3 Y 41 u. AA ac. ® rk�, : sok" '- t r .% b 64. mt ; •' _f ! • • • e',„ • . } I. . ,? f, Talo 6pe• • e4,44 W p4 A,A.AIVICONI CBRE H K CB RICHARD ELLIS • City*Elk River EDA—Brown Property E River III EXPERIENCE-INDUSTRIAL Maximum Graphics r 4 i t . Office/Production ,. �� : ,f- '�' ' i ....,1.,,,,,:&: ,, ,- :. '`. ,wetr .�kv.r. `�.-., ,:, ."$fl ". �f ,*x„y"� ,s ,';`,t,'-',IT. ,. N This building's unique design embodies Maximum's - ' ` progressive image and appeal �,;=k i ii' a to its design conscious if ( �`i i�IE 1 customers. The Amcon team . ' '" / _ .. .. constructed the new plantCC around Maximum's work flow l til! and designed a building that Ilili . II:7 not only houses the large . ' ' specialized equipment, but *t,,, ' , facilitates a process. ,fi ,..., ray. Square Footage "" C 38,400 .; Architect i f iiiii ,- , ll i Amcon '� "" '� ��I i Project Delivery y zer _ :0°' r.Ill ' Design/Build �1,+• 4,4 1 Period CLZ-'.. l-.-IT ,y �i itiw Iisj,o • Construction Peri ti . v�.'_•, s 1 4 Months ` . 1, ! ' "., Completion ' :' . , October 1994 •Vg Client Contact "r ‘'''.'4-:-4';',';'--, a Craig Mandery 952.448.5100 CZ Business Card 4,' Services ' �sFk x • a Office/Production/ ,a Warehouse _ *4 a Amcon designed and built this corporate �•, ,, „,,, a headquarters and publishing facility. We CC met our client's request for lighting conditions that .< a resembled typical office environments C and addressed humidity and temperature control _ . ,._- 4 I challenges unique to . .' ".'-w;.. printing by installing ”"" ' _ _ CC specialized systems to -"�"' control both factors. C Square Footage _ • • . 40,800 '+ - • c Architect • Amcon Project Delivery 412 AJU'ACOJ CBRE H K C CB RICHARD ELLISV 0 ti Cify o! J PI Elk River EDA—Brown Property El River` al) 3 EXPERIENCE-INDUSTRIAL Intl Union of Painters & }' .� ,,„,„1„t' " Allied Trades District Council 82 Offices & Center Apprenticeship Training I!; l g I'I l� l'i,: Office Industrial i I I '' ll:' ' I.i � s , / i. --'1'. 111 , 11 1 � 1 � !, i' '1 1 ' j11 The design of this office and :1_,,,,.. 1'1 training facility incorporates :` , nm� " III i }� 1 elements related to the trades II' I 1 6 - ti ' $t'° 1 representative of District i , q f Iii;:';.._ ' I I poop,;! .74".s. , Council 82. The entry � � " 3 showcases the painters, - — -° drywallers, and glazers trades. Three types of precast panels e 3 were integrated in the building's design to be used as ii\� h` ' ' .f' 2/ training for the painting `` + V apprentices. _ • � t 3 Ank Several challenges were overcome to build this facility. , 41,3- F Correction of soil conditions �` R ' » required approximately 700 f _, WHIN? ��, �" a geopiers to stabilize the ` 1'.-`1 s structure. The precast panels 2) used in the industrial part of e.;:.` `-' the building were the largest ever manufactured and 4 installed by Fabcon. Square Footage , • f , ',' i 60,000 F 1` ; V 4 i, , Architect , i, 3,A:• • Amcon •r '; 1 ,° )- 3 3 Project Delivery PV if 4 1,, Design/Build ,,,' 4;' �f' #ri Construction Period ri4 4/ fl i t` 8 Months Sit-.kb $ J' i 3 Completion / June 2004 ,' Client Contact Michael Gavanda 651.224.5480 . _ 3 3 • a A AIVICON CBRE H K CB RICHARD ELLIS • ,I. City of Elk River EDA—Brown Property E� Rive• r EXPERIENCE-INDUSTRIAL 1.3 I. Northern PowerEN . . �...,� Products Office/Manufacturing I. Square Footage ,-,..ote-AX*44441 ` 50,000 • vie Architect ,1 t wirE: Amcon Project Delivery Design/Build Construction Period -;j mi 5 Months �- Completion IAF- P d.. _I4i 1"-- , t mei November 2001 Client Contact um Roger Lervick 651-452-8900 '. 4 T. 4', . . d 5! 11111 III ........7.. . : ,, c . ,,,: ,... ..„.,:.... 1 .... ,_ .... ... t..... c ...,... . -..:.; . , c _ _ .. _ __ _ c --------_ -- --- _ ______________ - F c c c c c c • cc AtAAIVICON CBRE H K c CB RICHARD ELLIS city of Elk River EDA—Brown Property El • River I REFERENCES Clients is• W` Dunbar Development /' 411 Mr. Frank Dunbar IN 5000 Glenwood Avenue,#200 • Minneapolis, MN 55422 763 377 7090 i 41 River Trading Mr.Tom Conlan 10900-89th Avenue Client satisfaction is our goal. Maple Grove, MN 55369 763.463.3400 Community Bank Mr. leff Burzinski 706 Walnut St. Chaska, Minnesota 55318 i • 952.556.1300 Muller Theatres Mr. Mike Muller 4940-54th Street NW Maple Lake, Minnesota 55358 320.963.3041 I City of Mound Ms. Kandis Hanson 5341 Maywood Road Mound, MN 55364 952-472-0600 1 31 I I a i A AAACO CBRE H .K. CB RICHARD ELLIS a a a • i 1 I i a I a i Prepared for II • March 1, 2005 I CBRE Land Services Group Marketing Proposal I I a a a a i • i i • Executive Summary We are pleased to submit this marketing proposal in partnership with Amcon Construction for the development of Brown Business Park in the city of Elk River. We have comprised a team led by our land services team and including Northwest and North Central industrial brokerage specialists to market the property. The individual profiles and a select transaction list follow. We know the northwest market intimately having recently completed several significant assignments. 41( Our dedicated development team will attract the end-users that will maximize your tax base, create quality jobs, enhance property value and create a cohesive development. The evolution of a large raw land site into a desirable light industrial development will require a managed collaboration of real estate professionals. This is the focus of the CB Richard Ellis Land Services Group. Cr The Land Services Group includes the most qualified CB Richard Ellis brokers who specialize in the area and product type appropriate for individual assignments. CB Richard Ellis The corporate culture at CB Richard Ellis is a combination of teamwork and entrepreneurial enthusiasm. The level of professionalism at CB Richard Ellis is the highest in the industry refined through a century of industry leading performance. Our 14,000 employees participate in 6% of the world's real estate transactions, 24% of the nation's real estate transactions. CB Richard Ellis enjoys as much as a 35% market share locally. a • Land Services Group We distinguish ourselves from our competitors by having a team that focuses solely on land. Land is our expertise. Most of our competitors have a few people who deal with land but it is not their primary focus and therefore they are distracted by other product types and may lack the knowledge of the complexities of a land transaction. We have moved a great deal of our process into digital automation, from delivery of marketing ilt materials to client updates and therefore have become much more responsive. We are the only real estate firm that is utilizing parcel data geographic information systems data as a tool. Therefore we are more able to identify and demonstrate trends in land sales and the multitude of factors affecting land. We don't compete with our clients. We are not developers. We provide more service and offer a broader reach without adding more costs to the client. Current Listings C CB Richard Ellis provides a number of different services such as real estate asset management, finance, C appraisal and brokerage. Our current local listings include: • 290 acres in Hassan Township, a mix of residential, commercial and industrial land along 1-94 between Maple Grove and Rogers. C • 95 acres in Otsego, currently under contract for a mixed-use regional commercial center use. • 40 acres in Rogers, retail or office site. C • Lexington Preserve, a 131-acre business park land on I-35W south of the Aveda Headquarters. • • 20 acres in Brooklyn Park, a corporate headquarters site. C fir • S . • 10 acres in Blaine, industrial land at 102'd Ave and Flanders St. • 6.6 acres in Blaine, retail land on Hwy 65. Recently Completed Assignments 711 • 55-acre sale of land to Cabela's for an 185,000 sf retail development in Rogers, MN. S • 92 acre mixed use development in Otsego • 131 acre Alza site in Blaine • • 17.5-acre sale of retail land in Otsego. • 12-acre industrial land sale to Entegris Inc. on 4420 Ball Road in Blaine. • • Marketing Program • Website The marketing team will prepare and post a website exclusively for the Brown Business Park space. The 111 space availability can be located on the CB Richard Ellis website or directly through a link which is provided on all marketing materials. For an example, please see http://www.cbre.com/290acinhassantwp. • Brochure • The marketing team will prepare a two-sided, 8-1/2 x 11 brochure, which will be forwarded to prospective users and brokers on a more preliminary basis. The piece will include an aerial • photograph, location map, site plan and other pertinent details. An example follows. Specification Sheet • II/ A one-page specification sheet will also be prepared with proprietary data for qualified prospects and cooperative brokers. This document will include all pertinent specific features and financial data, organized in a short synopsis for easy, quick review. An example follows. Flyer • The Marketing team will also prepare a postcard/flyer for mass mailing. An example follows. • Prospecting/Direct Marketing The marketing team will select companies, which are deemed to be the most likely potential prospects • for the subject project. This group will receive a brochure, which will be followed up by a personal call. Personal visits and/or follow-up telephone calls to prospects identified will occur throughout the . marketing period. . Local Mailings Targeted mailings will be directed to prospective users obtained through CB Richard Ells' Industrial Information Services Data Bank System. Prospects will be selected based on the company use, industry type, location, and lease expiration date. • Co-Op Brokerages . The marketing Team will encourage co-op broker activity and keep the property in front of the brokerage community through mailings, e-mail, telephone calls, the Minnesota Commercial ' Association of Realtors (MNCAR) system, etc. Government Agencies CB Richard Ellis will immediately notify appropriate state and local government organizations of the property's availability of their databases and general information. An example would be the Sherburne • • County. • 1 1 . 1 The CB Richard Ellis Sales Force In addition to the general brokerage community, this information will be specifically addressed to the full CB Richard Ellis sales staff, which includes of 64 sales professionals whose expertise varies from industrial, office, retail, investment, and corporate services. CB Richard Ellis has complete market coverage of the Twin Cities area. The property availability information will also be easily accessibly to CB Richard Ellis' 1,2000 international sales professionals. CB Richard Ellis' professional staff is larger by more than 60%overall and 300% in the industrial specialty over its nearest competitor nationwide. Active User Tracking. CB Richard Ellis' 2o person local industrial brokerage group meets monthly to discuss all active users in the market. Accordingly, it is highly unlikely that a user over 10,000 square 4 feet will commit to a transaction without first being entered into the active user system and presented with appropriate available properties being marketed by the CB Richard Ellis industrial group. Midwest Conference Calls. The local CB Richard Ellis industrial group participates in monthly conference calls with its counterparts throughout the Midwest submarket of the country to discuss active users. The call has been proven to be very successful in identifying prospective users that may be 4 procured from outside of the Minneapolis/St. Paul metropolitan area. 1 Signage CB Richard Ellis signage will be erected in highly visible locations in accordance with local sign ordinances. Recommended Pricing/Projected Values • Year Recommended Asking Prices* Projected Value 2005-06 1.75 psf 1.50 psf 2007-08 2.00 psf 1.75 psf 2009-10 2.25 psf 2.50 psf Assumes special assessments paid by city. Commission Our commission is calculated on 8% of the gross sales price, dependent on a successful closing and is due at closing. In the event a sale is consummated with at broker outside your sales team, an additional 2%of the gross sales price shall apply and the fee will be shared with the buyer's broker. • i i i i • Steven R. Lehr Mr. Lehr joined CB Richard Ellis in 1998 after eight years of private practice of law in Director of Land Services Minneapolis. Mr. Lehr's law practice was focused primarily in the area of real estate • Minneapolis, Minnesota transactions and litigation. Mr. Lehr also handled land use litigation and environmental litigation. He has written articles about real estate development and • light rail transit. Prior to joining CB Richard Ellis, Mr. Lehr syndicated real estate ' investment groups and facilitated the acquisition of the assets. • ? SIGNIFICANT ASSIGNMENTS• Transaction Use • 290 acres in Hassan Twp Catalyst for 800 acre master planned community 110 acres in Corcoran Mixed use retail development steve.lehr@cbre.com • T: 952.924.4656 95 acres in Rogers Development of 185,000 SF Cabela's F: 952.831.8023 • 90 acres in Otsego Regional retail development S CLIENTS REPRESENTED CREDENTIALS • Wellington Management PROFESSIONAL AFFILIATIONS / ACCREDITATIONS . . • Accessible Space, Inc. • Minnesota Commercial Association of Realtors (MNCAR) • St. Paul Port Authority • Admitted to practice law in the State of Minnesota and Federal Courts. • Canadian National Railroad • Metro East Development Partnership (Board of Directors) and Executive Committee • Wilder Foundation • District 16 Planning Council (Board of Directors) • City of St. Paul Public Works • City of Saint Paul Business Review Council • ING/Reliastar • Metro GIS Private Sector Representative • Raul Walters Properties • Minnesota Commercial Association of Realtors 1 • Ford Motor Company • Minneapolis Association of Realtors • HB Fuller • Saint Paul Area Chamber of Commerce • The Hanover Company • Pilot Land Company EDUCATION • Magellan Development • Mr. Lehr received a Bachelor of Science degree in International Management from • Village Green Saint John's University in 1987 and a Juris Doctorate from William Mitchell College • Ryan Companies of Law in 1990. • City of Bloomington • City of Richfield 111 BRE CB RICHARD ELLIS 0 • Chet Harrison Chet Harrison is an associate at CB Richard Ellis and specializes in land sales, site Associate selection and large acreage land assemblage. Mr. Harrison uses Geographic Minneapolis, Minnesota Information System (GIS) applications in order to efficiently find and evaluate sites. Land Services Before joining CB Richard Ellis, Chet worked on web-based promotions for Trico Realty in Orange County, California. SIGNIFICANT ASSIGNMENTS Transaction Use 290 acres in Hassan Twp Catalyst for 800 acre master planned community 110 acres in Corcoran Mixed use retail development 95 acres in Rogers Development of 185,000 SF Cabela's chet.harrison@cbre.com T: 952.924.4610 90 acres in Otsego Regional retail development F: 952.831.8023 CLIENTS REPRESENTED CREDENTIALS • D.R. Horton PROFESSIONAL AFFILIATIONS / ACCREDITATIONS • The Walt Disney Company • Minnesota Commercial Association of Realtors (MNCAR) • St. Paul Port Authority • Urban Land Institute (ULI) • Woodside Communities • Metro GIS Private Partnership of Minnesota Governor's Council on GIS • Ryan Companies • The City of Richfield, MN • The Village Green Companies EDUCATION • The Magellan Group • Mr. Harrison earned a BS in Computer Science from the University of Minnesota in • Centex Homes May of 2002. • CSM • The City of Bloomington, MN • Town & Country Homes • Erickson Retirement Communities CBRE CB RICHARD ELLIS i i i • John Ryden, CC I M John Ryden is a First Vice President at CB Richard Ellis. John specializes in the sales First Vice President and leasing of industrial properties in Minneapolis, St. Paul and in the north metro • Minneapolis, Minnesota Twin Cities area. John also provides metro-wide leasing oversight for institutional clients. i SIGNIFICANT ASSIGNMENTS ' Leasing/Sale " Mounds View Business Park, Mounds View Northpoint Industrial Center, Fridley • • Winnetka Corporate Center, Brooklyn Park France Avenue Business Center, Brooklyn Center ' Mid-City Business Center, Minneapolis john.ryden@cbre.com Meyers Printing, Minneapolis/St. Paul • T: 952.924,4641 F: 952.831.8023 Lexington Preserve, Blaine C: 612.723.9313 AMB Portfolio . AEW Portfolio • ACHIEVEMENTS Tenant/Purchase Representation • 41) • Top Five Award in 1988 Cardiac Pacemakers • Chairman's Club Award in 1996, Boise Cascade . 1999, 2001, and 2004 • Millennium Club Award in 1997, Enteciris • 1998, 2000, 2002, and 2003 Ford Motor Corp • Cornerstone Award in 2001 Storage Technology Corporation • Exploration Awards: Cardinal Health . Client Service (AMB) in 2000 Teamwork (Teachers) in 2000 Eureka Recycling Teamwork (CalEast/LaSalle) in 2001 CREDENTIALS Client Service (Teachers) in 2002 PROFESSIONAL AFFILIATIONS / ACCREDITATIONS Teamwork (Apex) in 2002 • Certified Commercial Investment Member Navigator in 2002 • National Association of Industrial and Office Properties, Public Policy Committee Bob Jackson Award in 2003 • Minnesota Commercial Association of Realtors (MNCAR) • Metro North Chamber of Commerce I EDUCATION • Mr. Ryden earned a B.A. in Business Administration with emphasis in finance and marketing from the College of St. Thomas, Saint Paul, Minnesota. CE RE CB RICHARD ELLIS I ;a3. 0 — I SC James T. DePietro Jim DePietro joined CB Richard Ellis in 2002 as First Vice President, and has 17 years 4C First Vice President of real estate experience in the Twin Cities metropolitan area. His peers and Industrial Properties customers continually rate Mr. DePietro highly as one of the leading professionals in IP Minneapolis, Minnesota the market. IIC Mr. DePietro specializes in all aspects of industrial properties. He has experience in C site selection, build-to-suit assignments, sales and leasing, corporate ,, ,k' representation/new business park development and leasing. Jim has earned a C reputation of exceeding his clients' expectations on a consistent basis. SIGNIFICANT ASSIGNMENTS Square Feet Q "' Corporate Relocations 96,000 Polaris Industries 120,000 Q james.depietro@cbre.com Advantek 75,000 T: 952.924.4614 Delphax Technologies Q F: 952.831.8023 144,000 Aveda Corporation / Estee Lauder 88,000 Hewlett Packard 110 CLIENTS REPRESENTED206,000 Physical Electronics t • AEW CREDENTIALS • AMB • CSM Corporation PROFESSIONAL AFFILIATIONS / ACCREDITATIONS II • First Industrial Realty Trust • National Association of Industrial and Office Properties(NAIOP) ' • MBY • Minnesota Commercial Association of Realtors(MNCAR) 1 • Hillcrest Development • Opus Corporation ACHIEVEMENTS • Steiner Development • CBRE Minneapolis"Top 10" Sales professionals award: 2003 • Stahl Construction • CBRE Chairman's Club member: 2003 • Grubb & Ellis Circle of Excellence Designation: 1998, 1999, 2000 • Grubb & Ellis Co. "Salesperson of the Year," 1998 EDUCATION • MBA Degree in Finance, University of Minnesota • MA Degree in Communications, University of Minnesota • B.A. Degree in English, University of Oregon 5 CBRE CB RICHARD ELLIS i • i S . • Matt Oelschlager Matt Oelschlager is a Senior Associate for CB Richard Ellis. Matt joined CB Richard Senior Associate Ellis in 1998 as an industrial research specialist. Since then, Matt has moved into the . Minneapolis, Minnesota brokerage division, focusing on industrial sales and leasing. Prior to CB Richard Ellis, Matt attended St. Cloud State University, majoring in real estate. • SIGNIFICANT ASSIGNMENTS • Location Square Feet rm11g Mounds View Business Park 790,000 S Northpoint Business Center 207,000 11/ Blaine Crossings 144,000 matt.oelschlager@cbre.com Louisiana Distribution Centers 196,000 T: 952.924.4848 F: 952.831.8023 Winnetka Corporate Center 196,000 . C: 612.532.4747 River Road Distribution Center 100,000 Otter Creek Crossings 141 Acres CLIENTS REPRESENTED CREDENTIALS INF • AMB Property, LP PROFESSIONAL AFFILIATIONS / ACCREDITATIONS 5 • Principal Life Insurance • First Industrial Realty Trust • National Association of Industrial and Office Properties (NAIOP) • California Public Employee • St. Cloud State Real Estate Alumni Association Retirement System • Minnesota Commercial Association of Realtors • • Allied Building Products Corp. EDUCATION 11/ • Schwan's Foods • Mr. Oelschlager earned a Bachelor of Science Degree in Real Estate from St. Cloud • Pittsburgh Paints (PPG) State University. • Sears Home Improvements • Weyerhaueser Company ACHIEVEMENTS • Marfield, Belgarde & Yaffe • Guest Speaker, 2001 NAIOP Industrial Market 11/ Company (MBY) Update- Minneapolis / North Submarket • Teachers Insurance and Annuity • 2001 Cornerstone Award Winner 111 Association (TIAA) • Exploration Awards: • General Electric (GE) Client Service (AMB) in 2000 Client Service (Teachers in 2002 Teamwork (Teachers) in 2000 Teamwork (CalEast/LaSaile) in 2001 Teamwork (APEX) in 2002 II CBF1E CB RICHARD ELLIS • Dan Terry Dan Terry joined CB Richard Ellis' Minneapolis/Saint Paul office in 2002, and Associate — Industrial Properties currently works as an associate on the team of James DePietro, First Vice President Minneapolis, Minnesota in Industrial Brokerage Services. Mr. Terry came to CBRE from Stringer Business Systems where he practiced business-to-business sales of office technologies. He began his CB Richard Ellis career in the "wheel" program where he worked with senior professionals to help facilitate transactions in all areas specific to commercial real estate. Mr. Terry now focuses on serving institutional owners, developers and corporate• users in the sale, leasing and representation of their assets in the industrial market C of Minnesota. SIGNIFICANT ASSIGNMENTS (PARTIAL LIST) daniel.terry@cbre.com Location Square Feet T: 952.924.4683 F: 952.831.8023 Rogers 520,000 Rogers 150,000 CLIENTS REPRESENTED Brooklyn Center 300,000 C • Goodin Companies Brooklyn Center 74,000 C • • Posi-Pack Inc. • Tecni Foam Inc. Medina 4.5 Acres C • Delfax Technologies Plymouth 52,000 C • Wagner Office Solutions • MBY C • AMB CREDENTIALS • Steiner Development PROFESSIONAL AFFILIATIONS / ACCREDITATIONS C • Amcon Construction • Member of Minnesota Commercial Association of Realtors (MNCAR) • Certified Commercial Investment Member (CCIM) candidate EDUCATION C • Augsburg College, Minneapolis, Minnesota C C C C C C • C CBRE C CB RICHARD ELLIS C C I S I 0 • Firm Description • Hoisington Koegler Group Inc. (HKGi) I HKGi helps clients build distinctive, successful places by developing planning and design solutions that provide the foundation for community Hoisington Koegler Group Inc. 123 North Third Street, Suite 100 development.Whether it's crafting site plans for efficient land uses and a Minneapolis, Minnesota 55401 S sustainable built environment,or performing the necessary environmental p: 61 2.338.0800 111reviews to allow a project to move forward, HKGi's objective is to help f: 612.338.6838 create the types of places that people want to live in,work in and play in. web: www.hkgi.r°m Incorporated with the State of Minnesota in I HKGi's planners and landscape architects not only provide the technical 1982 5 expertise needed to develop efficient site plans that address density, Principals: circulation and storm water treatment issues, but they also possess Mark Koegler, ASLA, President 111 communityplanning and public meeting facilitation experience. This Bruce Chamberlain, ASIA, Vice President II) additional expertise can help development projects move forward smoothly Paul Paige, RLA, Vice President Brad Scheib, AICP, Vice President through the development review process. HKGi also employs a strategic Iplanner with extensive knowledge of public finance.This strategic planning Staff: 8 Landscape Architects D capability allows HKGi to link planning and design concepts to real world 3 Community Planners funding strategies that help clients put their plans into action. 1 Strategic Planner • 2 Support Staff • Since its establishment in 1982, HKGi has grown from a one-person firm 5 into a planning and design firm employing 14 professionals. HKGi's Services: approach has helped the firm garner a number of professional awards and Site Design Master Planning establish itself as one of the premier planning firms in Minnesota. Environmental Review • ��� .©....., .'_-4� - r,,, ,.•..ey Urban Design *, JIi 'ate. = •.,..+ 1,4 Downtown Planning 5 .9-,. .r.e:. 1iiii 1 1i t y ."--"4:4,,,. '°. • ' M V' +'�" Commercial Area Revitalization Comprehensive Planning _ .* f Transit Oriented Development Planning Y Strategic Planning 10 4:47121". ; r ` — 1111411 Corridor Studies ID7 Streetscape Design tl ip 41, ,P J 2' Park and Trail Planning r1,, ,,,".'''.'1J ,,t a 1 t tat ,At.. II '-sad '-'..✓el a :Al • i. 11 A sampling of HKGi site planning projects: d ''.. 1.H.B.Fuller Corporate Campus;Vadnais Heights 7"?- —IIp, :1.2.;;y Z.me Bridges Blaine 3.Lyndale Urban Village;Richfield �, © • • _ :i'.7,,,.... ;;;•-•:-7-11•1:::.•17, 4.Southwest Cambridge MasterPlan;Cambridge i _a' • 5.Westwood Community Church;Chanhassen ' + ° , •••;;•,: :, , ' 6.town Center Gardens Ramsey �` 'O �'` ,•,,, a '-4• ,•, t _' 7 Village at Circle Pines;Qnle Pines IIIill l li.Hili°,,•.. , j "= ��I ' } r` 8.Development Concept Master Plan;Moorhead s Alla 2114f1Ili' 40,,,,;:,„,,;,:;,- . 0_ .. "*4 I ,,, „,„..„....,..t.e, • . .,,, Hoisington Koegler Group Inc. ai.4, 4 ,....9..,401.'1744-.et'7.,,,,,....2,„;•/,„,,ii ® r page 1 miuma Itc liZ S RC Awards CC 2004 Outstanding Award for a Plan; ,�►;' ` P.,,,,,‘..,• • , American Planning Association, Minnesota Chapter (MnAPA) 417. -,„ i k t �. p Downtown East/North LoopMaster Plan; Minneapolis, Minnesota 4 sem? p 2003 Outstanding Award for a Plan; MnAPA; : ."tti't u: Downtown Revitalization Master Plan; Hutchinson, Minnesota 2003 Merit Award for Project Design; Y ,... C American Society of Landscape Architects, Minnesota Chapter(MASLA) , S. C River Flats Master Plan; Hastings, Minnesota ~ *•. CC 2002 National Merit Award for Public Planning; y -a :'� American Society of Landscape Architects Mississippi River Greenway Strategic Plan; Dakota County, Minnesota .rte , . :, i ; c 2002 Award of Excellencef-3_ 4. Q Minnesota Recreation and Park Association .�*TCi9 0Normandale Lake Bandshell; Bloomington, Minnesota 2002 Preservation Award; <� ` ,1 ; ' 7,t..:it.-. 3 ,. r, _ ,fit Minneapolis Heritage Preservation Commission y'-‘)`. 11,-41.!s---;:-4<-_'` f►4 ., C Main Street/6th Avenue SE Streetscape; Minneapolis, Minnesota « ' f .� . K`- I C �t- 2002 Project of the Year; i,,,,,,\ -L C Civil Engineering Association of Minnesota C and, 2001 Project of the Year—Environmental Award; ,: F,, to. t4s. f` t ,k Minnesota Public Works Association �;+ ., Lock a Dam Road Improvements; Hastings, Minnesota w .' ,,, xI, ,' � 0% �t,,, ' •.. c 2001 Merit Award for Public Planning; MASLA , `;N• .: C Taylors Falls Strategic Guide;Taylors Falls, Minnesota C 1999 Honor Award for Public Planning; MASLA a Projects)from top,left to right): Taylors Falls Strategic Guide,Hutchinson Mound Visions Downtown Revitalization Plan; Mound, Minnesota Downtown Revitalization Master Plan;Normandale Lake Bandshell; Mississippi River Greenway Strategic Plan;Main Street Streetscape;Mound Visions;Lock and Dam Road Improvements;Hastings River Flats • ,_ Hoisington Koegler Group Inc. ©® page 2 0 4 js'ugke 0 -71-4a--------, .. ... ....,.....,,, -._ ,......., . .. ; ". ","?-- •::',.',.."'''..`,.'i,„-' ---— - , - .. -;1,:_.,4'.%,-'-' "'' ' ,,, -.- •t", I ' ,-.1 - .'.. u i---,-, I •1 ,. ,I,, ir.-.. -..:'7. '',-'.,' '''' 4*'''''' '1 ''''"^'' -'-, .; -t, , ''' 6 li BB' i 1 , 1 1 .•''",t-4'..-- ,..,.., ., ,:..rix.,, .-.,.:;... .,.1.-vq;_.,.,,.;.,::,'"- .. .., . -, ,I 1 i 1 'ti: .11M111111111111-- ';--' 1'T • . 7.".1'..""i'' - ' ''. A'.''`'''.7'N-.' ' .- ''':''- ' '-0' i!7'-1r7 Tit! '1'411.4' 1 ' .- .'. •--- •.--..,.....:',:, -,-"t:'''A''' ;. ,.. . '''''...i :,A,,' 1. 4 -•' 'c" -, '".7 .1,, -, v. "‘",9" .."',.,—..4.1fP°44-%,',,, t• H :, 111111111111 -- 7-','-' . % --. -.'"''''''!'—',.. ;::'',."':;,''4,t,'"," ,,'',1,'„•:,...,:,,,:,",,,474",,r,,,,,z,,r, ' 0 ,•,:,.• .. -,•,,...-riAY•,'';`,i qii -p•..e t,;',Ftic.-i7J-q-7,,;,..,.'-01.; .- -- .,-,;-?..,'.e,,,eg .x..,,,„..f41,....i,,,..kt. -,,-_,,,.,;•.',,,!-,,,,-,,-,,,,,, ,rtiatitq,.....;,;.,,,i, , ,.„71_,,,T, '-'7-;,,,i'es.,',1-_,:',-4,::.-,1' ''''-''-''',..`"I'':•-•,;0745::A'''''' ..--1.,rsi..-.F.;d4S4c:"4" -...`"-,r','.''' ,.,,,,....:-.,---'''',"..':,,c0t.',.."-r•-,`3'''-;,-v ,,,}.---'"".......0.i.4"4- t4-V-e'T-74" -'411;''-','-' -i-;‘,,:,;,,'.z1.2,:,,;:',;.',,--,,,;- •1-2,4-11,4'.,k..,.,1',,..4,,i,...11.-' ,.,,..i.k7.-.t.:-4",,"'"'";:.;t..--.:-' -'''' .---t,-,^4--':''-,t-,---",":1143V--10,,-4.`",,,,il-4-,,,,,i,s011-,_,,s.,H*4-",.•'t."",--'%„:t.'-IV--,' °"7-" _.,,,,,_,,,,,,,,,„ ,,...„,.::.-,,.7,,,,,,,,.;-,,,,i....1;,,,..,;±., -„f.,,,4,-,- "''''', '".',i-'-n1-4,4-...,"-"-: ,•,,,',0-1-•',0!,5,--1."-;"-' -77t"'"It.,t,,,S,-,..'",,'-':-,`.,,--*-,4 .. ,, , /4.k.4.„,,,,,,,i-,,'..'..?:,t,.•.;.,,,,,..-4..,,,,.,„,.,,,,,,, . ';''''''''''''''''''''':*41'''''''''''''O''' • Elk River Bid Proposal Proposed Project: A. Briefly explain your proposal. It is the intent of Duke Realty Corporation ("Duke") to enter into a mutually agreeable development agreement with the City of Elk River Economic Development Authority to develop the Brown Business Park. We are proposing a four building complex, consisting of 387,400 sf that would be built over a 2—3 year period. In this agreement Duke would act as master developer. Duke's scope of work would include: site planning, cost estimating, project scheduling, safety administration, construction services and certain marketing. The Economic Development Authority would retain ownership of the land until a sale is completed with an end user. In its role as landowner, the Economic Development Authority would provide marketing through its various city programs for economic development, collaborate on site planning and ongoing site development, and provide business financing and incentive programs to companies wishing to relocate to Elk River. B. Please include the following items and how they relate to your proposal. 1) Concept plan showing lot layouts and types of uses i* • Please refer to our concept plan included in the "concept site plan" tab. 2) Building sizes (square feet) Our proposal is based on four buildings with the following approximate sizes: EDA Building — 105,800 SF—Manufacturing Building 2 — 100,800 SF—R &D Building 3 — 100,800 SF—Office/Warehouse YMCA — 80,000 SF 387,400 SF We are exploring the possibility of moving the gas line running through the site. If the gas line is moved, construction of an additional 70,000 sf building would be possible. 3) Total estimated market value of development at full build out EDA Building — $56.08 PSF $5,934,000 Building 2 — $84.77 PSF $8,545,000 Building 3 — $63.15 PSF $6,366,000 YMCA — $142.10 PSF $11,368,000 $32,213,000 • These prices were determined by using a Cap Rate Analysis. A Cap Rate of 9.5% was used with the following assumptions: EDA Building — $8.00 PSF 11,600 sf office — $6.00 PSF 47,100 sf manufacturing — $4.00 PSF 47,100 sf warehouse Building 2 — $8.50 PSF 90,800 sf R & D — $4.00 PSF 10,000 sf warehouse Building 3 — $8.00 PSF 50,400 sf office — $4.00 PSF 50,400 sf warehouse YMCA — $13.50 PSF Multiple uses 4) An estimate of the build-out time for all parcels We anticipate that development of this park would take place over a period of approximately 2—3 years. The plan would be to finish the first 105,800 sf EDA building in 2005. The other buildings would be constructed as build-to-suit clients are identified or in the case of the YMCA, as funding is available. Construction time for each facility would vary from 6— 12 months depending on • what is constructed. 5) When including SAC, WAC, park dedication fees, current special P assessments and future public improvements, what is the estimate of the 1:1 amount a third party would or could pay per square foot of land? r4th We estimate the value of this property to be in the $1.50- $2.00 psf range. 'fl SAC and WAC costs would be included as part of the building construction cost. ' Park dedication fees would be paid by the EDA as noted in the request for proposal. Special assessments and future public improvements have not been determined. 6) List the estimated development fees and overhead expenses Development fees and overhead expenses would be included as part of the building construction cost. • 4 • 7) Number of jobs created Our proposal calls for four buildings, all with potential different uses. The actual uses within the current zoning could lead to a wide range in the number of jobs created. We estimate 350-500 jobs could be created within the development. 8) Hours of operation We expect the hours of operation for each facility to comply with the city of Elk River's zoning requirements. 9) Traffic/Parking needs We expect the traffic and parking for each facility to comply with the city of Elk River's zoning requirements. 10)Expected noise levels We expect the noise levels for each facility to comply with the city of Elk River's zoning requirements. II. Firm/organization: • A. How many years has your firm been established as a professional developer?P 0 Duke has developed over 115 million sf of property valued in excess of$5 billion a o since it was founded in 1972 for its own account and third party clients. Cl) Duke entered the Twin Cities market in 1998 and owns and manages approximately 6 r* o million square feet of industrial property and 1 million square feet of office property. ..i-, MI Nationally, Duke owns and manages over 114 million square feet of office, industrial m and retail space. III. Professional Organization: A. How many people are employed in your firm and summarize their areas of expertise? f f;l Duke is vertically integrated with "in house" capabilities of development, finance, 44 leasing, construction, development services, preconstruction, and property management. Duke has over 1,100 associates located in 14 cities. Duke's Twin Cities office has 60 associates. i al m • It rOF 1 •IV. Experience: A. List some of the major development projects your firm has completed in the Minneapolis/St. Paul Area. Duke has just completed two major industrial developments. Crosstown Business Park located in Brooklyn Park, MN consisted of 10 buildings totaling over 1.5 million square feet. The Apollo industrial center located in Eagan, MN consisted of 3 buildings totaling over 480,000 square feet. Duke is in the master planning phase of two office developments. Norman Pointe located in Bloomington, MN will consist of 3 office buildings totaling over 1 million square feet and a major hotel. Minneapolis West located in St. Louis Park, MN will be a mixed use development consisting of approximately 2 million square feet of office retail and hotel facilities. B. List projects similar in size and use to the project you are currentlyro osin P P g. Representative projects that Duke has completed are located at the "representative projects" tab. Please note due to the size limitations of this proposal only a limited number of projects have been included. Please contact us if you would like to see additional projects. • References: A. List References for your five most recently completed projects. Argosy University—Ed Samson (cell: 847.372.4937) Rasmussen College—Bob King (303.417.9766) 21 . General Motors —Wayne Dawson (810.606.4122) Ftp RR Donnelley—Gary McMillan (cell: 717.891.2401) ' Blue Cross Blue Shield—Bill Everson (651.662.1259) VI. Scope and Cost of Services: A. List the additional work tasks that you think are necessary to prepare the property for development. Duke's proposal is based on the required infrastructure work being completed and paid for by each building as it is developed. Utilities would be extended to each building from Twin Lakes road. Traffic signals (if required) and connection to the regional storm water pond would have to be paid for and prorated to the remaining parcels. The rear access road would be constructed as a private road and require cross At 1 access agreements. Duke successfully utilized this concept in its Crosstown Business Park development. at 1 410 B. Estimate the cost development, including land preparation costs, development fee and overhead expenses. Duke's proposal would not require initial land preparation costs, development fees or overhead expenses by the City of Elk River. Initial costs for traffic signals (if required) and connection to the regional storm water pond would have to be paid for and prorated to the remaining parcels. The budget the City has currently estimated for this work would be utilized to assist each project as it is developed. r VII. Additional Pertinent Information: A. Provide any additional pertinent information about your firm or your proposal. As a developer of office and industrial properties in the Twin Cities and throughout the country, we believe our expertise will benefit the City of Elk River. We have built hundreds of buildings for third parties and our own account, this unique perspective provides us with a better understanding of what is needed for a successful project. VIII. Certification of Information Provided: A. The information provided herein is to the best of my knowledge accurate and i • can be accepted by the recipient first named above as true representation of: Company: Duke Realty Corporation CI Address: 1600 Utica Avenue South, Suite 250 Minneapolis, MN 55416 By: Patrick E. Mascia Title: Senior Vice President - Signature: Date: March 1, 2005 A 31 a • l ice; ice, %t — — — — —,—,-- �ir' Gam, ii, � �1� i�, Glr ■tl iIiI ��rl �l lam, ill .a, I1 11 r:U F P . 1. w • rib i N Y L, ...- ` • ,,,r,--:-.:se,,,::; i t �"�.• 4 - (_.1t x ,* �6 • +jr A..0 '31tb r y r Ir :....„.111/1.54,.\\".„,..,.,,,,,,....4_,..„...1 ."'. t'�'� y._ r, { ..-•.h \ • ..•+"j ./. -,-.,..-.r ^t) x: ‘`Ii.+ � • r -'-...-c-1-"--.-•-• �. ,,,.„:„--, .\,.• \matY . , l!l/,'../-.,..7.� t" �,hf ly ,. i • Xi Ee_i . ,,','i.;•11,_ •, ., . il , ''''' _.,,' ;'t ''...,// ‘ 1 . \ . \ El . , , ,,, 1 t • , ,,.:1:i.•, ...,,,i , . ---,,,,, „ 'fr N,,,.'....-0^V;;." 1s •'� r•fY, • •I r•I/i II'' i r „ 04/,/,1".°-:.-2....2".."'', i , `a.• ''`✓_, .i + %.,, •' ++1 5\f t l { `f :f s gR ,, rf e” ! y � ,,..� ., 1 F t 1 .� 1 "Faf ..'� rF 'rI�I Jt, - .... i s. + y�tl5� • ' `� Jr i 4++ t + T •,/ r d g Y r 't`,r r I li 71 4 t•1 �j ;8 , ; `�V'.f{.r7Fi ,y t L +,::::::44, jl./ ) ▪ %' 1r * ! �', ,pry..:, .•t,,,:.",.-.,,,i,,.. ..1,,, � � t''',44.';'4''''...:-• i ,y,' '1,r7,'7 i• C- 1,,. : i `i • + ♦ 1 I, ('�`� F..yaY:,+ • ,,a Yt tx:i ti {I'ItI11 t1 f+ • ` '. r 1 iY •11LL�."��!! i :s ii , •• N.V..;l.,� / • ,.. ,•t. • •1..,N ;11,.' + , t \ \. _. ' , ,ai r, /C r • / epi,,- t, [C l +'�I . i. x •+�� ^ \ +� af7/' a/. r • • t,� P'C ,�J'�IIl 4o'i ♦fit: ui 1. • 1 ,I "0 ,,,,,,....0,, • • i�^Y.`'t itk .� 7✓±btlt;,;`, t +`�+'y • t Nib �1ya .4...4—, ut Y • i' }4� t ti i ::..,1,':( '0* 1 ' i• ..,..;;'''..f,. ./.." „,,,...-;1' ,!a r -,V;••••••'•z - • *'•. I ., ..A r,„ .,..:7.:'',0:' ....-..'•,•;..;:...,.;•:::•::f...--1 _.-1 . '' l' .j. , . ) : : -:'"t.'4:::' ':,.: f : - ,-,-._- t y : ...,....:f....,:,- • ''��''I' ✓l r ” y •• / J t 11111111 - r +�fIFIlTl1�l ti' r. • 1 : r • Jj,, • 00,00 I ' '�f „/„,:-..• • ! Y \ moi•. . c> , r J • J • • :L ,rte..• /„�''” 1 J is/� : ! '` AI CNK • • g r Y • • • '' Ir ` ri{ gY f"' n • �mr/ a j,'',./;, ..///,'./� f w, f n yis qlf�tllll J / J n� •-•.''' ,;,fi � !ili '.4.:; ." :lif 0 i 7 't a:� r! r ��1 a. A ( r ' •• . , , 7 7fy'J`1 r 7 y •+t , 010-`?.. r- I \ f,. • J lw . �. r� . : � + 1. . � ${.• �, t j• 9 r!▪ x':��.' 4%1 ws/ Y ' y 11, U 's' S x '.,. i I. 1Y 11I71GISV "'t•!I\ i I ,i,,, , x r t:33, ar ,,, +�l 4 + 4. 'A1 7 n • \ " + Jam' 9r3+lilt 1y ` Ir.(11(i�jivnijill/44/,,,,, :,47,',.:/liiiir,Iff:,,,g':-.:',,,,,!od` '"Y S t# r1IJ~ �+•,`ty y4 t '+'S. >-,4 `, `'` . `\•_,,. i f 1.f r,/ f ! I ,'. r I 1 �` % ; r• I� ,I , ' tq r � ` : J •"`, .>„,,,,,,, J J•tJa lit 1:jtt�)A'� J�: ! CCC777 V.+,���.F+ ` !"sL� "�w t', � t Itr • • y .;�- •,t r�� te... -\} •/`�P Ih��/J%I.•J 1) Y ' .Xi*�' ®'u�?,-�. r tr •y /I !t••,,,.,:t J• -•. .. .•• -,.• k•6;2..'1'+� -,..: .J(f r/: ,, is i l,(11(ii/f r-+ )c.,. 1• .-1.....; 4, 1 i iii , G' a i —i g liti Ili rri4 i 12 ?t, l■ i w. .d�,.. f . n I EDA BROWN PROPERTY -150' REV 1 ey .- _ qfPIPC a t< 10 TWIN LAKES ROAD 02/2e/05 ff �o ELK RIVER, MN 1B` �. CONCEPT SITE PLAN D1H i, 1 1w, CF--'1 � � �r� ��r� �.�.� ul � �� f'=�1 �I �' : 1`�'—'1 1.�1 1- 1 I... 7� i.._'.-i� �.=te i,�.al F . • • — �., _Ma..,.. .,.,..«e.,v+e. . <. .,.:-,.,.w..w. ..wtw:tia�uu.,., {' I t' i r� ,., ii "� 1 9i It' tll 11,�4.�1 4� .+ r1F _ + V vt,. , 'sa :' ,IR 1K r`iN41R1> Rfl �f-' 9`" Ri` ^5� , �'�•._MarllM•,y,TY 7_ ......—.....7,7,7„;,......1� „..r'.:!+ faT4'y 1 ".4"O6", fi ' �gy,1. � k Mme_ - I r Y ''',If'Z''' `` ... � 4 y b �yKgWny� C,�r •f mo t„,..,,,,,,4 µ, s T N v' 440''''''''''''''' `_ _'$,,,,r w .,�3 t 6f'''' 1.1 1 r.v, d.rl� v,l RMI m - .t `k.)„ ti ..,y 2. 3�, ,a.t. �"' • �.�. , iilit4 ammo , '.v >�ib ?I of �k�"ir �M � ti � I h F-4 n.1 ,'1�' -'` gab s 4 ., k 1-.11 *':". SIS,,,"` 4 Q. "3 ,, 4,t.) ' w '" rk�. ,aRV d' '� "' l y 4 # 1 • T 4 ��r..,;',0',;•,,r,.... .mw " `a 4 ySy r k Kl A r a ' }4, 'i �d mol )- t: ��4 s' .,„ ,1,„,.-„-,,---,-.,,,, , ,, . ,,.„,,,, . jyy yy $ I 1 ' 1'161 r.'''I f '+'r 'Y� { r i' 'I °;°;..44 4 -, I P.' ---41 ' Vk �y+ "rat,,1 Ir .d �R S f �4M 1�. ^A si x + t� �1 i a 44a r t1 `I� z 1 t � II, 1i ' r 7 NI +4'44P: 1 s ' ,,.:.4t„,„....‘, f .,,, moryt11t µ,{ "�. _ w r ...% y"'� 40Z4 4C 1`:CF. .,, ,-,%,,i,,,, , ,, ,,,' '4}' 1 r^ yyf. � ro ',] IdI 1 ;_. ° r u .irWl a �m ax �; a a , me;W'w r „,„•,..,.;„:„„,,,„,., • • I,^ I �It 4, !tea . r #'�_ "t a m ra ryRY4s•xr ° , a s...¢� .,f a- �,�' '�` 1 - ,., ,,,,. i t '4,4444',, } ,mltt 4 �' ?4 3 Y# 1.' I, x -0 r i. ,,(p i R t _ +F- t;'r „,,, r ''�i..7 '”. ',ry ay Yd�.l $ ,,r. wsl yx;r '.: Nv u>Y1.4,10,44,:;,4,, d 4f'' Ida ry '`a d., , , is 4` ;I r ' m Kai T .x Rilkdyr :r .4;',',4.'�_,��, , S a y rR i, k §+ i ,,a'I v ,700- �,, ;y4Y,l-r''` ' r '' Alai `"'' r�4 y i..., y ',, •r ,. �.'NR' Sod'.4 41' :.,^c w I a krL!! iF 4� c',.., ! 4 r u Iv 'fir a�rw.�M�,�,y.,,sai r: n �C St ,4 Pvy 71 . s' 111 m ,i'' - .p ',-,...","''',,,,.4'-'4'..!. .*.C'�,£ kg ", a 4rA -:b .„f' 1,4r� 1 M. '' "',p * pm' r piN s ,�,. { ',' '4 .,,N,' --.1 ' ,••s-1 , ,." ,kms vfi,A,'� ,k' i^ r ,,,,441„;./77 "' a i, 1'jz* °"' ''71:. m' 11111111H ,., Y :; iiil ,,,"',5. „b+4. ",` ..„,,,,,,t>;..;*:-.';',,,,..E.-4'''. t 4,:,,„:,„,.,,,,,,1104-i02.-.......:•,•IS,t "'0,;-".j,".„ . ,A M ;4Ix g .,., `,�TII IIWNtr 1 nlultillluullll I' rs �.,m, }�. } ,a "n 1 . e!r -x 3 p t ilt UN11IIIIt Illlifltllil111111111111111111 / f,�1 �m .y f .s' d YRS tl� �!� p kr IF { 1 r, +.t Rx1. y4N i ”" ,s 1 u: RIt -.-',*4-„„,‘-'*- I•�'. "b1111111WIIUIINNIIIIIIIIIllIillli11 Yf1 yf , 4; k 7 „A� , � a r"^.a Isf.nl... q} qw '.,'J{; +r a .. t I.z,� rc �. .,.. '.,W �lII r l x:r k 1 I 41nnit 1 111 11. 71 , ,, _+;? i;fi7' 1` i * TM f .�R t.•. ,' �� , of s .l'117YI11111 tit `I„ 1 1111111 lllliii#lltllII111111 1 1y t 4 a `, c s"sN#:: a�+� . r t '� 4 a ,x...... '.e.--,,e,.,?-44eS," ' �, ; ^" d d,cx �t... l t ;Iy,F moa Rr 8 9,.. ,t..p. 'rt-,•stl" . K y •I' liiluuiulullllllll s + '� '''''',°;,4,'r `'^a� �° all HI IIIII111111 IIIIIIIIII. a i`i ''1n / •*� S.+ +.F.. ...,4°F. s;rrS 'n .nar i y 4,5. 1 r ' �'. p } 1r' p.'tL'..',„',, { 41'111111II 11111111111'r h •IES r s 1 „- .R.,,', F + k+'P ':1,1R ' t,t. ti ,< S{AE 1 , '� 1 �.a� a +ms's., u a '' n<J^',} i','„,.,..,,,::,-,,;,r. mf.r° x $° � � �,d i�"�}. , i C-' 1+ ua 1' + a _ R 'In 4+>,' ,, I d. .'"`r,� X ' *,, , r, jig' C' rw rI 11 4''.1:=4 r.u..r} . .i ,...-.----,"r„ ., f -�at"k ..fi f :;,..7,,',,,,,,a-:,,,,.,:,::7,,,':'',,;' '_. +� h rt > rr e"" ; K.' °w--" µ I'yicwl 1 P Ir 1 t z 4,. x�`";" dohs r� ..,x.A '� µ � k n sk-,.";.^^}' It'°ir " µ7 ,.'''i. a + p ti 4� f.,, ,,o ' r �`u, mo- '" 41r -. " a' .l✓r {+ 'f "a. �, ',',4* 1 A u f "fix p ' `* _ 4. r . P'.-411;14. 11_. al � Cglli p ',, t,p v: A-- iz' " r rtµ• r 4 I . ,• moz .,� .I o-, A xs o0Z r rom .g•` ',;',,,,4;,..,lr �.+Lca'd" '411u. c �Iri ' �Vi! rl ', I' 1 �., a NsraA A' '6 I ,, ,o4,44;',, a^ fi r r �k • #1;.',%"7-' / {� 4. C.. x 4 rr r + k,. Rd a - ,- i m c - g' • i� �, r�� 1 �. ,• mot'' w� I u,, l I R lY {F+ Sys f' �'�' ^rT� !� %Cl �� iiMik I I. ''3 ,: ., .� �� .. m ii I r 23 ma 4 l il', ,'' a! 0 i.4X i'ul."---Ig :41sP.p,..!: zg,c,zo cp,, 11;evi, i1 i'N ?4 y y>,, 1 t 44i L ' ri; 1 I Ila il. .... 4/C6 i 5 6 „, n EDA BROWN PROPERTY 4 =150 REV; _ I 1. r r u N 02/28/05 414: d "O TWIN LIKES ROAD x-4 ELK RIVER, MN k DTB � � CONCEPT SITE PLAN 0� " ate+ rt1 t E ` x � r. sk :,. •' 4. t . ,� , ;-. . " i te.,'; . j x a�} , g; } ��. 'I:, :''''''''.41rM7i:::.:4:;::),:i4:4';i:'':'.::iT'-'1LL'":::1*. (i;.*�'�1.��# sue 4, �. ,.. 4. ya '.5..,a.G*`,T. N a•Fw a. 4*x>'.''' '1', F`It " —i= \1;:F.s-^ . 111111. '•'N'''' .., '% . '' •.k '' y 'w .. � � �w 1 ,rte v6':._:--'..-:-.,,—..-„-°-i--;-‘,,:''''''.-",.`,'-:* 4 S _' - {\� '4. I ',�" 'k :.-,.;i14,4,:;',4)..../ y 11 x 3 I S � �4 J 3 � - iso, i` mr G`{r ' i } �' sr "" a- ,' fit.. 1 t -/i' ' • ti „„.. : : : • .;;;',,,,.....;:.::,':,',1);-„S.;','''..,:',.';'..,:..-f-,:,-,:x..., ¢ .' fF '`. '"' tea `.,,\ ',„ t " ?it -k t 1. �` . _, ,.;,-,:-!--71--....:1-,-.7.,,,;....3,i:-,��Rc �r;� Vi'"�r•' E � rr - a a. �'��,� t _..�._ � -�.� � ��' 1 b. " '���, >`K K• � . �, t �,. ;-,,,,414:1L'.1:',, a. ����+,� � �S� 1 :N� _ sk � i.1:*i:-,..1:::,il"3";'.1",t ^ � a ; .�` ,. t . ,. � �# r -4.44,,, zw a max'- is _ $ ,.,tiM ff ra E � a h, 3 `;..a. .+ave: -`.'s§'to.,�_ ,:a'"s:-..... . ;V.=``_° ,-,., .r...,..,,.r _ .� __:.., 1 _ 5S ."- >; ?,," 14+144." , „,,,„,.„... __:„...., „ , i� 3 kr'"z • ' ' w 02 r o �, Z c � ar i vmi. E a ¢ mt. � i a 01 CV IfJg+ f maHo a4 <, lz -= 4m. 11I s -o CIS�vao N i 21 i 64 . I. C 77 'O a r .t 0 3 Em› I rn a° `p c 1 i 'm o E 6 m ' r O o a o W c m +" m ami a a 1'ci. i m xLt. c ,-,44-' ■ ■ ■ ■ ■ ■ ■ w z ° r • . i � _ ~ r1 € r a x P 'tome M 71 4 4+'i w co zt r i. - . m w b � Al E. 1 i , :',"..'t„'.‘--,a,,,,,,e, „ r,,,,, * ii5 _ . 00 o'a Iy 9b Mak . W CO 3 c to CI 1 � .f "_ H �.o fi a c ctin_ yi P O C O (4.1 Vsf. S. ,. 1 S m }o ��sV T as o qua r%�... art T 3�t�.,...s. i :cm a CO g 060=c '"' •1 . a a1 V N C m ES' U cp x •O W' �. } W In c% LL Q 0_ .1� 4 I � , -* its .. "i j ��� „ ;1.' o u. ` Sm UmO § LrnN I ri Qw 0-1 Y C NfCo4 4 —„ M o ` m oOy,:,k GOym NmL 1 t" °,Fm c N O O UC ` m Ms 6� C) K 1-:\ § Ca) gg oot.,,- IF, 6m m la Ea= b0' -1 ,T5 s o E .t � c roc .°�~ W N-� U 1 # c,-2-c, €W Wm Y � O6 U) . 17) I - - '� t c - i Nmg2 ' C' Q_ rOm �� 7 `m mm." - a - O`= rn $ m -® ' l t mmD m 3c� a% w - a_ �a '_ VQ ,.,:,_ 1-7'.:Ir'''''tc:,.'? ' t �rs Q I T i0 I i 1l 7. , .� 19 N Q P1 y> --:.1 � ,F 11 - N�l „, ? -sal amm7 . fl 2 m C°mO1W lam I I aQ yoa,,N5','-;,•'-k« j o° m 2 • 87 ( ? U>O O. m ti v � I OFS N mL @¢ o E rnoO mrn om Eo �^ E `m . mg. E Y mm ° m 'oa W F, oU i EEmE o at vo a„ ' m e maiU v a ° mo z -'ryd � raa ° = mm§r m m3v c o" s ' 3 ° 2 c a1 `an, ' ° oc- - §. oo8auaN ■ ■ NI■ ■,C°..1 . ■ ■ ■.,:g�o ct) dab�o Ei Cll..) a.) 4.'l v CO T a s CO N ui 1sao a of o z ° a) v _ o p ca m o i. a ..Z... ° N N W N U �} c .s F�{- % y O i::':C:!:31'''''' , 1 ..yv „ O "6 O Qi LL p O Y E ' § - t v g d®i \0 9 U 7 13 E Q ° O 4,-; b4. zZ N O N F L°L r 0.. I • , ksx 3 WS 11 d - q � da a d O Jm Cd `12) k f at}. k i 1ff f-51-;-!.'k 'Cl' ii1g -H R C , °ycZ J c W `, o d Op CI) -}a� � ° ° g X a. % 44 I 4. — CI) NC J , . w v N fO M W N ' 'c -I ¢ � _h , Np� ass - $ X c ?cc,'' Q N cocm ■" „, 'r: W,7ris ■ ■ ■c - �y �1� a a9� sawI ip p , `a .,m®{^ ys14� f c.I ITEM # 7. 1j City of Elk -�-1 River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development ,}4 - DATE: March 14, 2005 SUBJECT: Semi-Annual Business Incubator Report: Harlan Jacobs, Genesis Business Centers Attachment • March 14, 2005 Genesis Business Centers Report Issue • Business Incubator consultant Harlan Jacobs will be in attendance at the EDA meeting to discuss the attached Semi-Annual Business Incubator Report. • Report of Genesis Business Centers, Ltd. Prepared for the Elk River EDA Meeting on 14 i• March 2005: Overview: The Elk River Incubator Program (Incubator Program) is making good progress despite a severe handicap in respect of the lack of ready sources of seed capital (cash investments)that in the past have been able to serve as both inducements and help respectively in attracting and growing companies in the Incubator Program. The lack of any funding at the Anoka Sherburne County Capital Fund (ASCCF) and at the Elk River Investment Club has made it difficult for early stage high tech start up companies to leave the founder's basement or garage. Despite this factor, several high quality start up companies are presently considering Elk River's Incubator Program for launching their businesses or establishing their twin cities presence. And the Swedish software company continues to remain highly interested in establishing its North American operations headquarters in Elk River as will be described below. New Prospects for the Elk River Incubator Program: Ashcote/Jim Stewart: Jim Stewart is an entrepreneur with technology that utilizes common fly ash (a highly abundant by product from coal burning electrical generation facilities)for constructive purposes such as coating of telephone and utility poles. He is agreeable to an Elk River location for his operations where he would compound a coating that would then be sold to third parties such as electrical utility transmission companies or telephone companies for their application to their electrical or telephone poles. He could have an office operation in the Elk River Incubator Program and he would require warehouse space with a truck dock for his operations. He is more likely however to pay full cash rent (as opposed to stock and rent for the Incubator 1110 Program) and have his office/warehouse combined in one place as a market rate tenant in the community. He needs at least$250 thousand in the short run and a total of about$500 thousand over the near term to launch and grow his business respectively. As part of the'vetting' process, Genesis arranged an introduction through the Elk River Chamber of Commerce to Great River Energy where Tom Lambrecht,the Business Developer for Great River Energy/Northspan Group (based in Sandstone, MN.) met with him recently. The meeting went well from a technical and market needs perspective. As further evidence of the potential for his technology's successful deployment in the marketplace, a major company(La-Farge North America) has been testing his product and is close to placing orders once Ashcote is in production. In the'old days'a company like this one would have likely met with a good reception at the ASCCF and the Elk River Investment Club and would have been able to get$50 to$100 thousand of seed capital fairly quickly. In today's economy, where most'angel' investors are sitting on the sidelines, it is very difficult to raise capital. Mr. Stewart has indicated he probably intends to add experienced and talented individuals to his management team and to retain a seasoned corporate attorney to help guide him through the capital raising process and beyond. Vilco Ov: Vilco is a Finnish company with an innovative fishing accessory: a remote controlled unit that delivers the fishing line/lure to the 'right spot'on a body of water. The product has been well received in the Scandinavian countries and one of the investors in the Finnish company is its commercial bank (banks there are permitted to make investments in their clients). Vilco is interested in establishing a U.S. subsidiary and having its operations based in the Elk • River Incubator Program as a way to get started.The company noted that Elk River is a good place for it to set down roots because of its location on the way to northern Minnesota fishing and its proximity to the twin cities and the international airport in particular. Mr. Mark Wuollet is the designated manager for the North American operations. Mr.Wuollet is based in Golden Valley and is quite familiar with and strongly in favor of the Elk River location in general and the Elk River Incubator Program as the place to get started. Vilco intends to raise capital and should have a relatively easy pathway as fishing products tend to get funded in both bad economic and stock market cycles as well as during good ones. The company's founder/senior marketing manager joined Mr.Wuollet in a visit with Heidi Steinmetz and Dick Gongoll in order to familiarize them as community representatives with the technology that was demonstrated in a DVD on a computer. The website is currently only available in the Finnish language (see www.vilco.fi). Mr.Wuollet's telephone number is 763 544 1965. SeeBuddee, Inc.: Mrs. Jodi Kolstad Budde, Founder and President of SeeBuddee, Inc., is seeking capital to expand her business. She has a proprietary technology that enables one to read a large map easily in a palm sized optical unit that allows for multi perspective vision. Her first applications were for skiers to use on the mountain side in Utah during the Winter Olympics. Rather than unfolding and having a mountain ski map flap in the breeze or blow away, her product allowed the user to hold a'big map' in a flat convenient handheld optical viewer. She is presently pursuing Small Business Innovation Research (SBIR)federal funding for military • applications of this technology. Genesis has introduced her to Minnesota Wire&Cable of St. Paul; this company has entre to military and special operations purchasing departments of the U.S. armed forces.The technology could be deployed at the field soldier level and provide a convenient comprehensive orientation map for the solider in the field. She intends to utilize injection molders as contract manufacturers and has noted that the Elk River area has a good number of qualified companies in the area. Her main business would be design and develop new product applications leaving the manufacturing to third parties. After success in this field, she intends to go to animation companies such as Disney to work with them in the field of consumer entertainment products. Her website is: www.See.Buddee.com and her telephone number is 651 407 6020. She is presently located in her home in Hugo, Minnesota. SEO Precision, Inc.: Esther and Shawn Oehlke are the two founders of SEO Precision, Inc., of Crosby, North Dakota. The company has precision laser missile guidance systems components known as FSMs that can also be deployed for commercial lighting applications as well as other non military applications.The first non military application will be for farm implement lighting systems utilizing LEDs for the illumination mechanism in a novel configuration. Presently, the company is a qualified sub contractor for Boeing on classified military aerospace avionics assemblies. Shawn Oehlke worked in Albuquerque on projects at Sandia Labs and worked for about twenty years with Newport, a California based military aerospace contractor. 111 The SEO Precision needs to raise capital for its expansion plans and needs to be able to hire technically proficient workers (such as may have worked at companies like Honeywell)for their new product lines as well as for the expansion of their military laser guidance system components. Esther and Shawn believe that an operation in Elk River would be a great place for them to access the resources and opportunities that exist in the twin cities while at the same time being a very livable community for them personally. The website is www.seoprecision.com and the telephone is 888 706 6826. Existing Prospects for Elk River Incubator Program: ScandTrace,the meat and produce traceability systems company from Mora, Sweden, continues to be interested in establishing his company's North American operations headquarters in Elk River because of his interest in working with the staffs of KnowledGenetica and LapTwo on related projects. He is in the process of raising capital in Sweden and will be visiting the U.S. again in the second half of May, 2005. He is one of the panelists along with Heidi Steinmetz and yours truly at the National Business Incubation Association's global conference on incubation to be held in Baltimore 16-19 May 2005. He will be explaining why he has selected the Elk River Incubator Program for the launch site of his North American operations. Heidi and I will be on the panel explaining respectively our roles in the establishment and operation of the Elk River Incubator Program. This should result in excellent publicity for the Elk River EDA and its Incubator Program. • Respectfully submitted, Harlan T.Jacobs President Genesis Business Centers, Ltd. • _ . • .. L981#11474, • o c ..c �y ".y vs 0 i f�(Na� 4Sk h4 ''.�' � e c, .0 W ° y- ,,.9Ar y 4 d^d i t+h '', i $+��P�"5, . 111 ,_` ° ° a aro. .-,,, .r :y,, 5a;,�( �,,a „l. x �° t LL>. 0 o ••= ys o a c .o U 'CL `,,�a"^� w L 2'OQ O O Q C o- � } 2 0 = o o ° N Q O -O U • M • as a �� ;� N U N C e m • '3e 6 n , �y 0U C O t` 8 ^, U U � C.•e. O G . �: r p 1 a ih .— d C O 0 • at -0 ;� = O.w = aW C -0 � s 0 ' � V C y = 0O b • b�S � " � k �r ak N •-an gr -:itte ' i,'c 3 , 1 156, W v g zz 0., c fes/, v m ts -Cs. 5 U U s4r o � 9 C •-� CiPr , . y -. 3 n O C • w C as •., :s .040,043'' lm b C a n � CI) ' i -�� } g •5 0 .,5., ° o -0 - ati . O 4 U s' "a -00lip U E m t O C ›.-.'4"-10 Ccd ct a- � •5' _ 4C* U Cj i-4qt@r 11, Iii s Ck y7 Q -a 0 0 bAOW'' 4 µr N C'' 2t q O := ...4 C1')�r ry ar O 'b U''''''''o",--.,"...1'0,-,,...,.',A,a , 0V d N C. ZW 5, . r v . In reMt kd, kkN � yI i"ii VC02LC . o,° ' , • a. ? Cm MIIII MINIM CC rboas Dm 0 ` k 40 '5 J � y� z fm0.{ V dW J �°- , H • u ga '' L a , W �l caN • o �, - ,- ^o" °A �WJ ^ o i y Nc °4°1 __ 7_W- ot _ n, 0 �ulO a rm slim'O 't T • • O t ,, y a d i o y N a) 41 bo u+ N CNI O r r w -a t2 b. = o ro 0— a o w tn upi Q `� co o ate °; . -oma c m � LL N " ..- e0 o ca ^° O p d .� 0 `. ' bo D N C z✓ r �y O CC a)VI c 'O a) N •z 1 _® .Q p O O Q 0 a p p Q N� �" a a. p •-, V) 0 C c 0a o t ) 7 t...:: ' w O v – , +- FsQ 8cz Q C U to 0 d' t v � Ca D p a Q a) C p cci M " aas ° � a) p" y 7 ay .d O c.0 C Q. – oOit a O-1au U ilf , Cs a) (24 do.& C ,L A 'b 2 - >,...• 0 cL)> m N ct v `O -0 .- = . O cci = 7L') " u 1:.," cz = Lei O O 0 — •5 ct =.- la.,w ..d - a) y • ,. o w0 cC • a; ° a� O cz O ... U to • . = Ra i., U v a) Q v a) .°? 3 C O C C ., p ° -fl ,40 cc .s c bA vii +� ›.'C4 b bD w O•c� - s to O O N G n b •�� C p a U �, >, �, y V, U C 'C b y p+ }.; ' tog .- s, 5 .0 `� = .., C C 3 O U -8 +O, 0 : = :� a.) -+ 0 a? v a) a) = O . p s x Q U O .5 ^6 L ., O .� b .E O c, c) p ,+0, -o = "� w0 >, bAs" o _ v a C, v v p O N O p-, .� ,C ,.5 = ct 0 U. y v 'i a C) C -' '�O C a) cn c� EbA r ��• « = U ~O. O .4 u O '71 a) O rC •v O "O cC O C U a) C b3 + C v ° t.;. C cC O ap g 'F. •aLs � C ° � ) CCvC •C 0 '- CC > . '0 8 = waa" +- ; � Q = ',- c,.; w � .-� C � � O N y iO2 -d O O .b ctN . ,0 O � 1x -0O � a) i~ . oco s -damugC3U = ' . Eau � -rJ E cn � , � 0 �bn � 6. 3b cr 0 I. D . c owl = „ o ci V - p - cn O cC ..8H — k .= N -2 ^O 0 ct o ci O 3 M = cJ " U y bg U U E a) OV N O ° C tb N cc + y a) `c ct 0 '-� = �N Gr - �• cc U O Q O . 0 O to C C 3 `� U C to 1) Q" U o. "' •., -o E :° 4 et c`i U • 5 oo ° eszC7 Q � c Q, .- W .0 ° ,0 , 0 3Fgci 3 0 ° tea �, bo -d >,o = ct ems' � .3 .0 a) �' 7° a as c a, 3 O artv, E 2 a r, t0.-, ,., .v, m v, O, N O w N y,y it Lei a.x .. cu 7:1 cu 3 e.o f„ O s~ ° •2 • .n b o U ' Cd c., .- O y o O Qa o ,b x,, .°., a� .0 U . • OV "d w . O 0 'i., . o L- .0 cC = N O - 0 a•. U O,. a) E Q•' a: O D C u cC a) „ = .D .b 8 b bo C g C �! f3,= E bA- a cc-Cs ,5 E 0 v O, "d cc) ct O ;74 c > ct , A 't7 = 0 ' 0 Milai ,_ >-., E ,-E,j .,.‘5 ,,,..,`...). cc' r ,— et :6.0;0 71 C.)V) C:0'>'7:1:%) L.) Ct= 73 --',..,C).4" _02 E7 cta) Oc::)-'''''' ,.^:-_1.--( 2 '1)6') -=‘`',.. ."..a' 8 8 O0 Q EO H °o, ti CL,cl a) A C '4J 0 G. =Z„ cd cC V) .E • N U C . v . a) .. 7 C fl o O c,,, a) wa w C. "O 0 O a) ...+ 0,U w vA, • Vi N 7,5. .,-i ,b �, •,:, y �. O t~ti" O� fts .�'. >, p., �.' 3" >, U N A O p U ° gcutr`l 0 L = � � � Lam ° C) E B 6.0 ° gx -. etc - C) -d29 - ;• � � '~ - c " a .) U v ^C '" �� c�� "to N CU. O cLC i; G �U v� ,, w j yU� b .� a5 it a� .--, •.� U •�~.' y 'O -d U te, N U >> r.., U U .SC CQ . ,�..U p" O O U c� C ^� 0 �O 'b O +.-' v' p .,•7_,, 0 �O G�..U. .O .fl C 0 ,4 . N -. b _ p ^0' O UE r. =`t U ° N v 0U .,. '0 N N.� ., O O p 0 O cid . N N C 'C a O d • '� s.. . .= i h ,-- = cd -' > s ^-� a .L 3 w w cci .' c m;� O cct 2 K y y O ct LT. • h «E 0 Cc.) �.., 2 . .a G)CU cn o C� czi a) 7.) y U o 0 U ', o 'O U O�. U 8 C y • '� O o o U �' • o -. 0 = pro �° o 7 .5 � ° o nr '� 4' � O � • a 71 mib ' o °�) ) Li N 'eti' O N •= ate) 3 U c4. y •` cn O 0 ° • O >� O U O 3 > D , s� •r C j 'C a•~ 7:7 = U = o Ga.E co U eUof)0 co Q ccz O 4.) L7 3 s~. -° Q aF" a ' >,'>~� = °U) � � - U 8 o °��' ° et � -� '� U � mss" a� i. o bV o 3 s.V n a own i aU ° . � o o" o ° C73 0 0 Q > bA 0.p t' N O �:� .512 ' p cx � cu U N a e. 0 2k� cd'yG L >' y A C)Ua Uj 0 c�yvOw'O )yU,.=... bq i Ufl N !!n - - -14:= c9 b r4 .O 8" ¢r a) N Nj 0.,: -E—,ccz G bA ..O .,y >QU r'U >> U h .~.D G i. 1J O O .0 a' Q -� .� v .� 3 ; its cd 3 ,_..�co U O N cC h O < ° 3 Pa W c,,� a o U � _T '� O � moo ° p c9 o U •y^ g 1.) U k % C '''' ' A, '` R W 3 � 8 "Eu 0 • 0 0._ c 0 Awa p p c"C p O O9. ¢, Q w V1 Q" U ,..= '� � - 9J C tli�u, t 0.- P. �s , _, • N.= v3' /nu; 1.0 ...,c-) 5_, ' ^yv � � U 'ti,.. ti (d e a; ti a ,S �' 'C � b �• Wc cct I 5tO y 'C F-1 -+N E • cu 0 © O co L O a) O ^C C O C a> s� -CS >, '� w. 4.r .� O N (:) >> 69 '� .0 ., 'O '� ,--� U ›-'1.7''''i i CCS i.r tt o O , 2 d; O , cv'v o O '� �,'7 ,i3-,, a) = 5 v y = > O 75 O O� ° 3 N > > o N /3 r° _y' 1 = N > ° VO N >,• O G N ,,� v' 3 .� , } •rt o o byO W _Ri ..� CrU O — cC "C� u - et «S '" o H N d bQ -, -› (:) .:.-. .,' H ›oi 5,1 s. O ca'C O B et az c ••� cJ E `, 3 ,, cry s~ O � �. � ° ' cA ° ° � � '' �� Parma 8 j,:, ,c..7 up Ctx ° W a� o o � U a s �' A rl�r�i . P� `fir wi vrrs i t A sl!i-:':ir., t '+', is sT ,� �,^4 s ry r / ' .�tror ," ,�A s x� a ss rii r .rr % r fa S l0 3 _ t err r h • re�it k- 3 �,s� %Ili i 6t-e ga ,pas " jC ' mj it i ,�, k Ltd 4ig - / /� j r r Z ,40 m gn �'y , LG ``t Ks�..ra^' % rr Z f0 e t `r - sir s/is t r.. ;;r;:;,i;;;:;;E;;;;;;:;,;;;;;;;V; ;;;AA;7A'!';;;;,144;:;;.;.„:;;:;;tV*:•::.,,',,io':•:::i,•,'.',, SS— M m �� "�� ``��a�� r�D� �l pry r✓r� �"` �� �� ..,v��' as r:fig// rQi¢ u r+ t o app aswv r r�r/i l0 +' x, k z . � ° ��l ++ 01 ° + y'} ¢ j r//1/ er r c C N • ;.1-",A,„ 1',.,• '" �.� Y' /r r r r r Z V •JidL // iIILf r r .a rs • N cn s- y- ++ P E, .g 'tea r,jfi r ct v -cT µ- "0 �� ,,, s" 1 W. s� '� r V N G a V N �` r' Km ,g ' ,✓,s c� 0 OJ 6'1 �� x¢,.� �^ fir//o r 'sA - ' of O •vf �0' r�, r 6/ i s O v "a 8" 6 4 � a ,�a//r /// / J�fyY G a$, sty , q�� ���rr �lfg a sa ties y,,,yrp 9 --.`i< ..,.,„� > P° al„ ^3a..'�rri irir/"�,r 'r✓'r r:�r"A �--� �, INFORMATION s� MixesVolume 4.Issue 1 Industrial February,2005 / In the previous issue of the Minnesota Eco- Forthose intrigued,more detail will follow nomic Development Center newsletter,the inside this newsletter. i . topic of weekly wages was explored. The discussion raised further questions about the t._ structure of wages and industries in Minne- The data reveals differences between the y sota. This newsletter will address some of economic structure in out-state Minnesota those questions,particularly the differences versus the Twin Cities. In out-state Minne- ;,, '; between industries in out-state Minnesota sota,there are few manufacturing estab- versus those in the Twin Cities metropolitan lishments. However,those manufacturers area. The data in this article is from Cov- are major employers in the region. Fur- „ ` Bred Employment and Wages(CEW). For ther,they pay relatively high wages. In .: , 1 more on CEW data and collection,see page contrast,in the Twin Cities Professional three. and Business Service businesses are promi- nent. The industry has both a high number of establishments and employment. How- �' Covered Employment and Wage data cov- ever,most notable is its large contribution lW ers the number of establishments,employ- to total wages. At the same time,the Pro- "' ment and total wages by industry and by fessional and Business Services industry in county. This level of detail makes CEW out-state Minnesota has many establish- 1i p 4. data a treat for data hounds(such as the au- ments,but does not contribute significantly ,,. ,--`24.-W4,-,74-,"°` thor),but can overwhelm first time users. to total wages. With that in mind,this article will start with F a brief summary of the information gleaned. (Continued on page 2) 1i : Chart 1: Establishments by Industry, Twin Cities, 2003 NR/Wining Q 0.3% Construction Other Services J Leisure and ° 9.8% Hospitality 9.2/0 7.9% g Manufacturin y�r�,, i � ' 6.0% Ed/Heafth cl vr:„ -::%;%:-i, ., ,,,..,:;,-,r,:;;.14: 9.0% 22.2% # Prof/Business Information 20.9% 2.0% 'ctiVRies 4 12.8% Chart 2: Establishments by Industry, Non-Metro Minnesota, 2003 jil NWMining ittlt Other Services. Construction Leisure and 2.5% Hospitality 8.2% 13.3% 9.8% o„ Ed/Health Manufacturing 7.6% 5.6% • Z rru z Prof/Business2 Fina iafs` 30.2% 11.5% Activitie dation 9.2% 2.0% INFORMATIONDigging Into The Data (Continued from page I) The four charts in this newsletter show how these conclusions were drawn. Charts 1 and 2 show the breakdown of the number of establishments by industry for both the Twin Cities and out-state Minnesota. Charts 3 and 4 show the full spectrum of data, including establishments, employment and wages. ESTABLISHMENTS In terms of the number of establishments,the largest industries in the Twin Cities are(in order): Trade,Transportation and Utilities(TTU);Professional and Business Services;and Financial Activities. Together,these industries account for almost 60%of the total number of establishments. This can be seen in Chart 1. In out-state Minnesota,the mix is slightly different,as shown in Chart 2. While,Trade,Transportation and Utilities is still the largest industry in terms of numbers of establishments,the percent of total establishments is much higher(30.2% compared to 22.2%in Twin Cities). Construction is second largest,followed by Professional and Business Services. These three industries are responsible for about 55%of total establishments in out-state Minnesota. Establishment data is intriguing because it indicates the mix of businesses in an region. For instance,the data states that 30%of all businesses located in Chart 3: Establishments, Employment and Wages out-state Minnesota are involved in Out State MN, 2003 in Trade,Transportation and Utili- ties activities. Digging deeper i���� ■NR/Mining into the data,roughly half of those k establishments are engaged in re Wages ■Construction tail trade. Approximately 35%are _= ❑Manufacturing in wholesale trade, 14%in trans- portation and warehousing and Ems+ -nuinformation l %in utilities. �� •information Ni Financial Act While the number of establish- ments is illustrative,looking at the Est ` £ •Prof/Business number of establishments in con- Est o Ed/Health junction with employment and •Leisure/Hose wages is even more insightful. 0% 20% 40% 60% 80% 100% Charts 3 and 4 show all three •Other Services measures(total wages,employ- ment and establishments)on one Chart 4: Establishments, Employment and Wages in chart. While at first glance the Twin Cities, 2003 charts appear difficult to interpret, taking a slow approach yields amiNNENNimommismommuNimmwiNommom NR/Ninin g wealth of information. Wages ■Construction WAGES 0 Manufacturing First,focus purely on total wages. This bar represents total wages for TTU the region and how each industry Emp ■Information contributes to the total amount of -= ■Financial Act wages. In out-state Minnesota the chart reveals that Manufacturing is Est _ •ProfBusiness the largest contributor to total im Ed/Health wages,followed by Trade,Trans- ° ° ° 60% ° •Leisure/Hos portation and Utilities and then 0% 20% 40% 80% 100% • Education and Health Services. ■Other Services (Continued on page 3) Page 2 NEWSLETTER INFORMATION ATION Drawing Conclusions and Asking Questions . (Continued from page 2) chart 4 for the Twin Cities,however,there are differences EMPLOYMENT from out-state Minnesota. Professional and Business Ser- vices is much more prominent in the Twin Cities economic Next,focus on employment in chart 3. The employment mix. The industry is second in terms of establishments and bar shows total employment in the region and each indus- employment. However,most notably,it is the largest con- try's contribution to total employment. The biggest em- tributor to total wages. One can conclude then that in the ployer in out-state Minnesota(in terms of an industry)is Twin Cities,Professional and Business Services related corn- Trade,Transportation and Utilities(TTU). Education paries are relatively large employers and pay relatively and Health Services and Manufacturing round out the top higher wages. three industries in terms of employment. CONCLUSIONS Now,how do these three bars work together? This is where a real wealth of data can be derived. It is known Due to size constraints of this newsletter,it is impossible to that TTU has a lot of establishments. But,if one looks at explore all the wealth of information that can be found in es- the share that TTU contributes to employment and then to tablishment,employment and wage data. However,a few wages,the overall percentage is declining. This indicates. conclusions about industry in both the Twin Cities and out- that while there are a lot of establishments,TTU compa- state Minnesota were drawn. These conclusions then bring Hies are relatively small employers(few employees per up a variety of policy questions. The Center will not attempt company)and pay mid-level wages(since it isn't a much to answer these questions,just merely bring them up in the matter of discourse. larger chunk of wages). Most importantly,the discussion of industry mixes brings up Manufacturing,on the other hand,has very few establish- mems. However,the share of employment related to the question of economic dependence. Does the dependence manufacturing is significantly larger. This implies they of out-state Minnesota on a few large manufacturing employ- have many employees per establishment. The share of ers leave rural Minnesota vulnerable to downturns in the the wage bar is even larger,suggesting that those few manufacturing industry in general? What about the possibil- establishments are paying far higher wages than other ity of outsourcing to foreign countries? How do rural areas IP industries. stay competitive? Does pursuing a cluster strategy focused on another industry make sense? Do cluster strategies leave The Professional and Business Services industry,while area economies vulnerable? having quite a few establishments,is not a major em- There are no hard answers to these questions,but they do ployer in out-state Minnesota as shown by the relatively merit consideration. For more on the data,see below. low percentage of total employment. Further,the indus- try does not pay particularly high wages. Similar conclusions can be worked out by examining • About the Data Covered Employment and Wages(CEW)data is collected by the Minnesota Depart- ment of Employment and Economic Development(DEED)in conjunction with the Bureau of Labor Statistics. CEW data is comprised of information on the number of establishments,number of employees and average wages by industry and by county. Employers and employees included in the data are those covered under the Unemployment Insurance System. This does mean that a few select populations are traditionally left out of this count—farmers and railroad workers among them. It is estimated that only 3%of Minnesota employment is not counted under the CEW program. CEW data is tallied for both private ownership and all ownership in most cases. However,there are times when only the totals for private ownership are available,therefore,this newsletter used CEW data on privately owned businesses. • VOLUME 4,ISSUE i Page3 E„ „ ,. NON PROFIT ORG. U.S.POSTAGE PAID 4 a ST.CLOUD,MN 56301 t as PERMIT NO.460 v ail' ,+ Catherine Mehelich,Director of Econ. _ 'I Dvlpmt. .t ,„” City of Elk River tN.` 13065 Orono Parkway h ,� '` Elk River MN 55330 SIM.th V.T-V re „, INFORMATION ` 44" t)tt v'":.O Jr•'"4 CAS OS Iittlttitittelittlildi tttr1t1tt111tlltttt{!!F ttitlls tttleitid tli mai 1111 Events Small Business Resource Fairs. February 18, 2005 in Granite Falls. Minne- The Minnesota Economic Develop- sota West Community and Technical College. March 4, 2005 in Mahnomen. ment Center at St. Cloud State Shooting Star Casino and Convention Center. Information on workshops at University is funded in part by the http://collinpeterson.house.gov. Economic Development Admini- stration's University Center Pro- Winter Institute and Economic Outlook. March 15, gram. 2005. Institute at St. Cloud State. Economic Outlook at Kelly Inn. Hosted by St. Cloud State University. Send comments and subscription ":".►•v••. requests to the Minnesota Eco- 4 !•``!:x`►, nomic Development Center. MCFOA Conference and Exhibit Show. March 16-18, 4!4I r 2005. Kelly Inn and Civic Center. St. Cloud,MN. k A.4i", More at www.mngts.org. ` 4► Director: Hal Lofgreen Program Manager. Brigid Tuck NADO(National Association of Development Organi- Office Manager: JoAnn Miller zations)Washington Policy Conference. April 10-12, 2005. Marriot Metro Center,Washington DC. For more,see www.nado.org. TTY: 1-800-627-3529 SCSU is an affirmative action/equal opportunity City and County Managers' Spring Conference. May 11-13, 2005. Cragun's educator and employer. This ma- Resort, Brainerd, MN. See www.mngts.org for further information. terial can be made available in an altexhative format. NADO(National Association of Development Organizations)Annual Training eConference. August 27-30,2005. Sheraton Seattle Hotel and Towers. Seat- tle,Washington. More at www.nado.org. %