5.0. EDSR 03-08-2004 ITEM 1 5.
City of
Elk
River
MEMORANDUM
•
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: March 8, 2004
SUBJECT: Strategic Industrial Marketing Activities Update
Attachments
• Elk River Community Profile 2004
• "City Council Series of Updates Not in Spirit of Open Meeting Law",Monticello
Times,January 12, 2004
• Monticello City Council Minutes, February 9, 2004
I. Product Offering Strategy
Industrial Land Issue
Staff and Ehlers &Associates have received responses from the landowners of Elk River
Business Park and Elk Path Business Center regarding terms of a master development
agreement. They have indicated interest in participating in a master development agreement
with the EDA for the development of their industrial/business park property.
I I. Competitive Strategy
Labor Market Research
The MN Dept. of Employment&Economic Development (DEED) provides custom
analysis/presentations of statistical workforce information to communities throughout the
State per request by communities. This service is free of charge.
At the April EDA meeting, Cameron Macht, DEED Labor Market Analyst,will present a
custom analysis on job growth, etc. between Elk River and its competitors.
Monticello
The attached article and Monticello City Council Minutes provide information on
Monticello's consideration of developing a city-owned industrial park. Elk River's Strategic
Industrial Marketing 2002-2004 Action Plan states Monticello as a current key competitor.
Strategic Industrial Marketing Activities Update
March 8,2004
Page 2 of 3
• I I I. Key Account/Lead Generation Strategy
The Director of Economic Development has provided the 2003 Inquiry/Prospect Report in
a separate memo.
Cymbet
Staff is working in response to Cymbet's Request for Proposal for a new 46,000 square foot
facility. Staff is assisting Cymbet to identify a developer for the project.
Kraus-Anderson Manufacturing Client
Staff submitted two preliminary proposals to Kraus-Anderson late last month for a
manufacturing client requesting a thirty acre site to accommodate a 450,000 square foot
building. Staff's proposals included the Elk Path Business Center and EDA Brown Property
sites.
IV. Promotions & Advertising Strategy
Advertising
Staff visited SoftPac last month to obtain new photos for the 2004 ad campaign. The new
ads featuring SoftPac will be used later this Spring.
V. Public Relations Strategy
Community Profile 2004
Copies of the attached Community Profile are distributed in the Economic Development
marketing packets, at the Chamber of Commerce, at City Hall and per request. The Profile
110 is also available for download on the city web site.
2004 Money Breakfast
The Money Breakfast was held at Connections in Big Lake on Wednesday, February 11th
from 8:30 to noon. The workshop was for new or existing small businesses interested in the
latest financing program/techniques,relocating or expanding, employee retention, etc. Most
attendees represented retail/service businesses.
The Director of Economic Development presented a case study highlighting the financing
process for the Sportech expansion.
MN Real Estate Journal (MREJ) Economic Development& Site Selection Conference
The conference was held on February 26, 2004. The City has cosponsored this event for the
past two years. The event has been successful for reaching key account audiences,including
brokers, developers, and realtors.
Elk River received a half page ad and small article as part of a special conference insert of
MREJ, which staff anticipates to distribute at the EDA meeting. In addition, the City
displayed its Economic Development booth and the Director of Economic Development
participated in a panel regarding business financing.
4th Edition Economic Development Newsletter. The Progress Partner Dispatch
Staff is working with Public Relations consultant Mike Porter in preparation for the 4th
• Edition Progress Partner Dispatch,which is anticipated to be distributed later this month.
Strategic Industrial Marketing Activities Update
March 8,2004
Page 3 of 3
• Technical Assistance & Operations Consulting Program
In May 2003, the EDA committed $5,000 of the EDA's Advertising/Marketing budget,to
implement a two-year partnership program with MN Technology, the Technical Assistance
& Operations Consulting Program. Companies may receive up to $2,000 for technical
assistance services and must contribute 25% towards the services.
MN Technology is considering planning a business forum to promote the program.
VI. Strategic Partnership Strategy
Downtown Revitalization Project
The HRA extended the Preliminary Redevelopment Agreement with MetroPlains to April 5,
2004 to provide sufficient time to work together toward a development agreement.
Planner Chris Leeseberg and Jim Prosser, Ehlers &Associates, conducted twenty meetings
(totaling approximately thirty-five people) with downtown property&business owners
during the months of January and February. The purpose of the meetings was to seek
feedback on parking issues,including reaction to several options to address the removal of
the public parking in the Jackson Block.
VII. Business Retention Strategy
Business Retention &Expansion (BRE) Visits
Two BRE visits were held in February.
• Contour Mold — Heidi Steinmetz and Commissioner Kuester
• The Cretex Companies, Inc. — Heidi Steinmetz, President Gongoll and
Commissioner Dwyer
EDA Commissioners attending BRE visits are asked to provide a brief verbal report of
issues that were discussed during the visits. Staff will contact EDA commissioners
individually to schedule future BRE visits.
E& 0 Tool and Plastics
Staff attended a recent Manufacturers Alliance event in which Tim Osterman of E & 0 Tool
and Plastics spoke on the importance of LEAN manufacturing practices.
City of
Elk
River
13065 Orono Parkway
Elk River,MN 55330
Community Profile 2004
Elk River, Minnesota
The City of Elk River is located 35 minutes northwest of Downtown Minneapolis.
County: Sherburne Metropolitan Area: Minneapolis-St.Paul MSA
Sherburne County is the 29th fastest growing county Senate District#16: Senator Betsy Wergin
in the nation (of counties with 10,000 or more
population and by percent change from July 1, Senate District#48: Senator Mike Jungbauer
2001 to July 1, 2002). House District#16B: Rep.Mark Olson
Source:US.Census Bureau,Population Division House District#48A: Rep.Tom Hackbarth
County Seat: Elk River Congressional District#6: Rep. Mark Kennedy
Population
20,000- 18,082
17,380
16,447 80,000 68,177 71,537
15,000- 64,417
11,143 60,000-
10,000- 41,945
6 785 40,000-
29,906
5000-
2,252 20,000_18,344
1970 1980 1990 2000 2001 2002 1970 1980 1990 2000 2001 2002
Elk River Sherburne County
2000 Median Age: 1999 Median Household Income:
Elk River 32 years Elk River $58,114
Sherburne County 31 years Sherburne County $57,014
State of MN 35 years State of MN $47,111
Sources 1970, 1980,1990,and 2000-U.S.Census Bureau Source:1970,1980, 1990,and 2000-U.S.Census Bureau
2001 and 2002-MN State Demographer 2001 and 2002-MN State Demographer
Phone: 763.635.1000
Fax:763.635.1090
www.ci.elk-river.mn.us
W
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0 City of
Elk. _ 4,-...--,.....„
Diver
f 13065 Orono Parkway
Elk River,MN 55330
Employment
Largest Employers Product/Services Full-Time Employees Part-Time Employees Total
Independent School District 728 Education n/a n/a 1000
Sherburne County Government 433 31 464
Guardian Angels of Elk River, Inc. Nursing/Housing 109 259 368
Great River Energy Electric Utility 388 9 397
Wal-Mart Retail Store 274 53 327
Cub Foods Grocery Store 60 155 215
Menards Retail Store n/a n/a 164
Tescom Corporation Pressure Control Devices 180 1 181
Coborns Grocery Store 29 132 161
The Home Depot Retail Store n/a n/a 150
The Cretex Companies, Inc. Precast Concrete Products 130 0 130
E&0 Tool and Plastics,Inc. Tooling and Plastic Molding 120 0 120
Alltool Pinnacle Design&Mfg.,Inc. Metal Stamping 101 1 102
kttell n/a=not available
Labor Force Unemployment,Rate
Sherburne County 38,027 Sherburne County 4.8%
MN 2,932,138 MN 4.2%
U.S. 146,969,000 U.S. 5.6%
Source:MN Dept.of Economic Security,Local Area Employment Source:MN Dept.of Economic Security,Local Area Employment Statictics
Statictics(LAUS),Nov.2003 (LAOS),Nov.2003
Labor Force per Industry in Sherburne County Hourly Median
Goods producing Occupation Wage Estimate
(Construction and manufacturing) 4,446 Computer programmer $28.49
Service Producing Tool&die maker 24.19
(Transportation,wholesale and Machinist 18.85
retail trade, services, etc.) 15,953 Welder 17.73
TOTAL 20,399 Office Support 14.25
OilSource:MN Covered Employment and Wage(CEW),1st Quarter 2003 Assembler 13.45
Source: MN Dept.of Economic Security:Minneapolis-
St.Paul MSA Occupational Employment Statistics(OES),
3rd Quarter 2003
Ui
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4011 City of
Elk --...--, ,
River
E13065 Orono Parkway -
V Elk River,MN 55330
Taxes
•
Tax Capacity Rates 2004 Elk River Tax Rate Estimates
Year Total Rate* City Rate
2004 estimate 124.376 43.734 School District 728 32.709%
2003 134.939 44.614 City of Elk River 43.734%
2002 139.799 43.600
2001 128.544 30.596 Sherburne County 45.206%
2000 119.448 30.248 Cit EDA&HRA 2.727%
Total Rate 124.376*
Commercial/Industrial Taxes:
- Minnesota real estate taxes are based on fair market value estimates. Tax capacity times the tax rate equals
property taxes.Tax capacity is the value of the property under $150,000 times 1.5%plus any value over
$150,000 times 2.0%.
z 7btal tax rates do not include Market Value School Excess Levy Referendum estimated rate of 0.07598%and state tax of 54.000%
2004 City General Fund Budget:$7,875,400
City Bond Rating: A-2 Moody's
Housing and Development
New Residential Construction Value New Commercial/Industrial Construction Value
$87,101,347
40M-
60M-
30M-
$38,613,568 $41,877967 $41,501,578 $23,920,652
40M-
$25 690,122 20M-
lOM- $8,118,842
20M' $4,529366 $6,341,570 $5,224,891
1999 2000 2001 2002 2003 1999 2000 2001 2002 2003
Source: City of Elk River Building and Environmental Department Source.' City of Elk River Building and Environmental Department
New Housing Units Home Sales.
Year Total Units Single Family Year # Sold Mean Price Median Price
2003 546 285 2003 364 $210,976 $195,950
2002 224 183 2002 313 195,367 210,500
2001 256 163
2000 284 172 2001 300 175,149 167,650
1999 205 177 2000 253 156,951 129,900
Source: City of Elk River Building and Environmental Department Source: Sherburne County Assessors Office
City of
Elk - -�
River
13065 Orono Parkway
Elk River,MN 55330
Business and Community Services
Medical Services Water
Seven Clinics,Twelve Dentists,Nine Chiropractors Municipal water source: Wells
Nearest Hospitals Storage capacity: 4,000,000 gallons
Mercy Hospital— Pumping capacity: 6.7 mgd
Coon Rapids, 14 miles Tapwater hardness: 17 grains or 213 ppm
Average demand: 3,700,000 gallons per day
Monticello/Big Lake Community Hospital— Peak demand: 5,300,000 gallons per day
Monticello, 12 miles Rates and billing: Elk River Municipal Utilities
(763) 441-2020
Mail Services
Elk River Post Office (763) 441-2133
Electricity
Banking and Finance Electric utility: Elk River Municipal Utilities
(763) 441-2020
Financial Institutions and Assets—2003
Electric utility: Connexus Energy
First National Bank of Elk River—$406,000,000 (763) 323-2650 Customer Service
The Bank of Elk River—$264,000,000
American National Bank of MN (all branches in MN)— Natural Gas
$230,000,000 Gas service: CenterPoint Energy Minnegasco
Wells Fargo Bank,NW Suburban Market (Retail Deposits) Rates and billing: (800) 245-2377 Customer Service
$823,000,000
Sanitary Sewer
Newspaper Sewer service: Municipal
Elk River Star News (weekly) Plant capacity: 1,640,000 gallons p/day
Mpls.Star Tribune and St.Paul Pioneer Press (daily) Average demand: 1,200,000 gallons p/day
Rates and billing: Elk River Municipal Utilities
Transportation (763) 635-1170
Highways
Interstate Highways 7 miles to I-94 Refuse/Recycling
Federal Highways U.S. 10,U.S. 169 Provided by the city through contracts with private haulers
State Highways 101
Rates and billing: Elk River Municipal Utilities
Rail (763) 441-2020
Burlington Northern Line
Bus Telecommunications
Greyhound Bus Lines
Company: Qwest Communications
Air Rates and billing: 1-800-244-1111(Residential)
Anoka County/Blaine Airport 1-800-603-6000 (Business)
St.Cloud Regional Airport Company: NorthStar Access
Minneapolis/St.Paul International Airport Rates and billing: 1-877-225-6754
Intro-City & Intro-County
Pioneer Taxi Cable TV
Sego Taxi and Package Cable service: Charter Communications
River Rider Heartland Express Customer service: (800) 581-0081
I
iii/
_Ity of
Elk -; 00., ,
River
13065 Orono Parkway
Elk River,MN 55330
Education
K-12 Education
District 728 Public Schools
Number Enrollment Grades
Elementary 6 4,816 K-5
Junior High 4 2,502 6-8
Senior High 3 2,983 9-12
Area Learning Center 1 130 8-12
Elk River Parochial/Church Schools
St.Andrew's School 328 K-6
Rivers Christian Academy 325 K-12
St.John Lutheran School 284 Pre-K-8
Solid Rock Christian Academy 19 K-12
Area Post Secondary Schools
Technical college: Anoka-Hennepin Technical College; www.ank.tec.mn.us
Distance: 9 miles
Community college: Anoka-Ramsey Community College; www.an.cc.mn.us
Distance: 15 miles
Universities: University of Minnesota,Twin Cities; wwwl.umn.edu
St. Cloud State University; www.stcloudstate.edu
Distance: 35 miles
Community Contacts
Catherine Mehelich Heidi Steinmetz Jeff Gongoll
Director of Economic Assistant Director of Economic President
Development Development Elk River Area Chamber of
City of Elk River City of Elk River Commerce
13065 Orono Parkway 13065 Orono Parkway 509 Highway 10
Elk River, MN 55330 Elk River, MN 55330 Elk River,MN 55330
(763) 635-1041 (763) 635-1042 (763) 441-3110
cmehelich@ci.elk-river.mn.us hsteinmetz@ci.elk-river.mn.us eracc@elkriverchamber.org
www.ci.elk-rivermn.us www.ci.elk-river.mn.us www.elkriverchamber org
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City of
Elk -�-�
z_
River
X 13065 Orono Parkway
C
V Elk River,MN 55330
-
Business Financing and Incentive Programs
The City of Elk River and its EDA and HRA participate in and have access to the following programs:
• City of Elk River Micro Loan Fund • City of Elk River Technical Assistance&Operations Consulting Program
• Minnesota Community Capital Fund (MCCF) • Sherburne County Business Development Fund • Tax Increment
Financing • Tax Rebate Financing • Elk River Business Incubator • Anoka/Sherburne County Capital Fund&Elk
River Investment Club • Central MN Initiative Foundation • State of Minnesota • MN Business Finance Corporation
(MBFC) • USDA Rural Development
Commercial and Industrial Areas
5 Commercial
6 1.Central Business District
193 Avenue 2.Elk River Plaza Mall
7
A
\ 4 ® 3.Barrington Retail/Office
B
School Street 4.Elk Park Center
2 ' 5.Hillside Crossing 11
P Main Street 8 6.Hillside Crossing
I7.Hillside Crossing South
MISSISSIPPI RIVER
c 8.Elk River Crossing
Ar Industrial
173'Avenue
01 c A.Elk River Industrial Park
/21
B.McChesney Industrial Park
C.Rail 10
GO
0 D.RR Industrial Park
E.Ar-Mon Industrial Park
H
D ar5 E Elk Path Business Center
E G.Elk River Business Park
H.Cascade Industrial Park
Visit the city website at www.ci.elk-river.mn.us for the most current
listings of available industrial sites.
Phone: 763.635.1000
Fax:763.635.1090
- • www.ci.elk-rivermn.us
C� ✓ G c�
• Council Minutes - 2/9/04
Jameson property. Matt Brokl indicated that whether access was negotiated or the property was
condemned there would be compensation paid. Glen Posusta asked about the elevations of the
property making layout of the road alignment more difficult. City Engineer, Bret Weiss stated
that the City would like to see connecting to the future Fallon Avenue at the peak of the hill.
Bret Weiss indicated that street layout would require some tree removal and filling of areas.
There was no one else who spoke for or against the proposed vacation. Mayor Thielen then
closed the public hearing.
Mayor Thielen stated that the issue of access is a separate issue from the quiet title action and
the street vacation. City Administrator, Rick Wolfsteller, indicated that since the City has
received clarification from the church on their concerns and the proposed vacation would
extend only as far as the Jameson property, the City Council could take action on the matter.
ROBBIE SMITH MOVED TO ADOPT A RESOLUTION VACATING ALL OF OLD
TERRITORIAL ROAD LYING SOUTH OF THE RAILROAD TRACKS ABUTTING THE
JAMESON PROPERTY ONLY AND INCLUDING ANY PORTION OF OLD
TERRITORIAL ROAD THAT ALSO ABUTS THE MERRILL BUSCH PROPERTY.
ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
8. Consideration to review non-binding letter of intent and authorize preparation of
purchase agreement for industrial land.
City Administrator, Rick Wolfsteller, provided background information on the proposed
acquisition of industrial land by the City, citing the work done by the IDC small group in
meeting with the Council in a workshop on the land acquisition. The Council had initially
delayed action on this matter until February in order for the City to come up with a cost figure
for the City's portion of the I-94/CSAH 18 Interchange. That cost information will not be
available yet for several months. The staff and IDC small group have been negotiating with the
owner of the property known as Otter Creek Crossing. The terms negotiated have been put into
a letter of intent which was being brought before the Council for their review and also to get
direction from the Council on whether the IDC small group and staff should proceed with
negotiating a purchase agreement. The letter of intent covered price, mining operation and
extension of utilities. Rick Wolfsteller emphasized that the letter of intent is not the final
document. He noted there are several issues that still need to be resolved such as the closing
date and ceasing of mining operations. If the Council was still comfortable with the City
acquiring industrial land and marketing it, then a purchase agreement should be negotiated.
The IDC small group and staff pointed out possible detriments, such as the state economic
development program called JOBZ (job opportunity building zones) which could impact the
City's ability to sell industrial property.
Bruce Thielen stated that he had received a call from a developer of industrial land in
Monticello. If the City follows through with a purchase agreement, he felt the IDC small group
• should meet with industrial developers and property owners and inform them of the City's plan.
4
• Council Minutes -2/9/04
Robbie Smith asked about the JOBZ program and the area it extended to. He was informed that
Cambridge, Chisago,Wyoming were some communities that were covered in the program.
While St. Cloud had received designation for the Fingerhut properties, Stearns County was not
included in the JOBZ area. The eleven county metro area is not included in the JOBZ
program. Economic Development Director, 011ie Koropchak, stated the JOBZ information was
presented to the Council so that they were aware of possible impacts. She felt the City had to
list their strengths and market them. Robbie Smith emphasized that he was concerned about the
possible risk to the City if they cannot compete in marketing this property. Bruce Thielen
stated that although there is risk to the City, he felt it was minimal. He felt the question was a
philosophical one of whether the City should be involved in developing and marketing
industrial land.
Glen Posusta asked about the 60 acres the property owner is retaining on the north side of
Chelsea Road. He felt if Chelsea Road was extended this property could develop quickly.
To allay the concerns of the property owners, it was pointed out that any programs, such as TIF,
etc. are available to the private industrial land developers as well as for any City industrial land.
It is the intent of the City to be competitive in their marketing of the land but not put other
developers at a distinct disadvantage.
BRIAN STUMPF MOVED TO AUTHORIZE STAFF TO NEGOTIATE AND PREPARE A
FINAL PURCHASE AGREEMENT TO BE BROUGHT BACK TO THE COUNCIL FOR
APPROVAL ON THE ACQUISITION OF THE INDUSTRIAL LAND KNOWN AS OTTER
CREEK CROSSING AND TO SET UP A MEETING OF STAFF, IDC SMALL GROUP,
AND IDC LIAISON, BRUCE THIELEN WITH INDUSTRIAL LAND DEVELOPERS AND
PROPERTY OWNERS. GLEN POSUSTA SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
9. Consideration of accepting final Technical Memorandum on the Street Reconstruction
Program and authorization to begin feasibility study for 2004.
Kevin Kawlewski from WSB presented information on the Overall Street Reconstruction
Program and the area proposed for work in 2004. He provided background on how the
reconstruction program was developed and reviewed the factors in designating and prioritizing
areas for reconstruction. These factors include pavement condition index (PCI),trunk utility
improvements that would be needed, traffic levels and project size. Based on PCI values a street
with a PCI value of 70-100 would most likely have sealcoating and crack filling repairs done.
A street with a PCI of 45-70 would have mill and overlayment done and a street with a PCI of
0-45 would have full reconstruction done.
Kevin Kawlewski then reviewed the areas designated for improvement and the year they
anticipated making the improvement. 2004: Streets in the County Club Manor area; some of
• the streets in the Meadow Oaks area; Sandberg Road and School Boulevard.
2005: River Street west from Chestnut Avenue. 2006: River Street from Chestnut to Dayton
5
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Page 2—Monticello (Minn.)Times,Thursday, Feb. 12, 2004
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meet with a ,, '.,.,-,,-C , '.,r--,,- �r
council members would z w ��,��,��$� $ n {���,�r �
negotiation committee, and then two more , = d�Qr e',,� Cr . , 4.1-'4',/.',4?„
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would meet with the same group in the same ���,� �!:::,.'i.';, -,',':',7',';''''''''''''','-'4'„ �
room to hold the same discussion a few min- ,�� r
utes later. (The mayor did not plan to attend a
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The topic was a proposed purchase of 120 ” * c.
acres of land from John Chadwick. The city �� � x x;4 1
is considering turning the land into a new y �
city-owned industrial park and has already ,,,;:„...,,,,:,,,i,:-_-,„—
set aside $900,000 to invest in the project. !, „',, " .
Clearly, this is an endeavor of. significan44,t
public interest.
However, the
series of updates, , -.£. ,_ � � �:.
two council mem-
ICA project involy- fr
in millionofdollarsIF ��
appear to have and a new direction
' been scheduled
to avoid the for the city council A red-breasted fish catcher
W Minnesota Open needs to take shape
p p
Meeting Law. with unfettered public As the mist rose from the river aDaviids of Big Lake captured Vladimi
Though gats- scrutiny. ing lines at Montissippi Park. His re
• erings of less y and the river.Vladimir,who lives in
than a quorum of the St.Croix in the summer and the
a public body are He said he grew up on a river in Rus.
not subject to open meeting requirements, which he considers rather boring.
the law states that"serial meetings" meant '
to avoid open meeting rules are illegal. ��� cMonticello public bodies,incudigeecd ofone s
1
council, have a long and excellent
respectingThisappearsthe ttoQbeopen meeting an aberration on the"w. I am not unlike most red-blood-
ed American men.As I lay in bed
part of council members. the other night next to my wife,
And, it should be noted, when the Times Paulette,I
I d outdn'e thought
housleg My
pointed out the impropriety, a public'notice my
was quickly issued and the Times was heart was pounding senses
, my
ablaze. Finally, I could take it no
allowed in to report on both meetings. longer.
To be sure, negotiations over land prices Reaching over, I pulled back
and assessment rates are sensitive issues the covers. I figured I could do
that do not necessarily benefit from too what I needed to do without undu-
i many players at the table. However, the fair ly disturbingelf, eprobablywok,t saidd
handling of such matters is of critical con- towake u
cern to all who own property and pay taxes I then leaped out of bed and
in Monticello. A project involving millions of bounded down the stairs. There,
dollars and a new direction for the citycoun- my brand new, still wrapped in
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