5.0. EDSR 05-10-2004 ITEM # 5.
•
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority cc
FROM: Heidi Steinmetz, Assistant Director of Economic Development t-i'J
DATE: May I0, 2004
SUBJECT: Strategic Industrial Marketing Activities Update
Attachments
• "City Plans 120-Acre Industrial Park to Bring Monticello Jobs", The Business Journal,
April 30, 2004
• "Plant Could Spark Industrial Park", The Business Journal,April 16, 2004
• • Ad featuring SoftPac, The Business Journal, Growth Guide April 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. Staff is
working with the attorney to draft the document.
II. Competitive Strategy
Monticello
The attached Business Journal article highlights the City of Monticello's plans to develop a
120-acre city-owned industrial park. The Monticello City Council approved a letter on intent
on the property but is currently negotiating the purchase agreement.
Elk River's Strategic Industrial Marketing 2002-2004 Action Plan states Monticello as a
current key competitor.
Dayton
The attached Business Journal article states that the City of Dayton will develop a master
plan for a 170-acre industrial park.
•
Strategic Industrial Marketing Activities Update
May 10,2004
Page 2 of 2
• III. Key Account/Lead Generation Strategy
Several sizable prospects have contacted staff for siting proposals in the past month. The
companies include metal fabrication and precision machining. The companies range in size
from requiring 20,000 to 50,000 square foot light industrial buildings.
I V. Promotions &Advertising Strategy
New SoftPac Ad
The attached ad featuring SoftPac appeared in the April 2004 Business Journal Growth
Guide. The ad will appear in future 2004 issues of both The Business Journal and the
Leasing Guide.
V. Public Relations Strategy
Case Studies
Staff is working with Murray Wolf of Wolf Marketing&Media to develop two case studies
of SoftPac and Orluck Industries to include in the Economic Development marketing
packets. The case studies will include the process in which each company decided to locate
in Elk River.
VI. Strategic Partnership Strategy
Downtown Revitalization Project
At its April 3rd meeting, the HRA accepted the key points for a development agreement with
MetroPlains. Once a TIF district is established, the HRA will draft the final development
agreement.
•• VII. Business Retention Strategy
Business Retention&Expansion (BRE) Visits
Staff has been working to schedule BRE visits with Great River Energy and NRG. Staff will
contact EDA commissioners individually to schedule future BRE visits.
THE BUSINESS JOURNAL I twincities.bizjournals.com April 30,2004
rbitumbo Mortgage!!
120-acre industrial
•
nterest ony for 10 years,Il plans
25 year term ■
• •
,� ° Financial flexibility park to bring
M jobs
&savings
4.:
w Low,low single digitBY 5001T D.SMITH -14,0;,'' ,
• interest rate -STAFF REPORTER '0,4�� M1$SL$rap+'Ritter
• Refinance or purchase Monticello city leaders think the private mar .'
•Jumbo mortgages to ket isn't attracting enough industrial jobs, so - r Q�4°`64z
Simillion they plan to open a 120-acre industrial park r�.y
, that will compete with nearby land owners. ® S4
The leaders are in negotiations to purchase Jk L10 `
I
MSSISSIPPI the acreage of raw land at the southwest ;, ,.° , ,
t quadrant of the intersection of Highway 25
AtoitroAGit co.'t and Interstate 94. Weinand could not be reached for comment.
"We would be in a better position if we had To counter a"monopoly"on the industrial
.:, our own land to market rather than relying on land in Monticello,Wolfsteller said,city lead-
the private market,"said Rick Wolfsteller,city ers want to open up the market to lure corn-
I administrator for Monticello. ponies to Monticello.
L.
City leaders want to attract well-paying, Charles Pfeffer, president of Maple Grove-
industrial jobs before homeowners and retail- based Pfeffer Co.Inc.,has brokered land for the
What ers consume all its land. Monticello Industrial Park for about 12 years.
I "We don't just want to be a bedroom corn- Pfeffer would not disclose the owner's name.
munity with a Target Pfeffer said city
m store," said. "We would be in a better leaders canspend tax
V 10 E a It is notWolfsteller uncommon dollars on a real estate
E
V � � for cities to purchase OSItion if we had our own land to play if they want to,
land for industrial pbut he added that
parks.Examples in themaybe the city coon
"Your local Uoice, Uideo and north metropolitan market rather than relying on the private cil should evaluate the
area include Elk River, need for assets that
Web Conferencing Service Prouider" Anoka, Buffalo and market.We don't just want to be a would serve a broader
Free Demonstration Big Lake. „ range than to do a
'52.831.7215 www.uideoguidance.com If the deal goes bedroom community with a Target store. speculative purchase."
9 through, city plansThe . Monticello
the
to spend about$3 mil- Industrial Park- has
lion to buy the 120 Rick Wolfs teller seen some sale activity
acres owned by John City administrator,Monticello in recent years,Pfeffer
Or,' Chadwick of ° said, but industrial
Bloomington-based development has been
Otter Creek,Wolfsteller said. The city would slow there,like in the rest of the metropolitan 1-111.. Fee
spend another $3 million for infrastructure, area.
including roads,sewers and water service,he However, Monticello is along the rapidly' ,. said. growing I-94 corridor between Minneapolis
" ' Chadwick would not sell his entire parcel.He and St.Cloud.It is seeing strong demand for
74, � IYAoz�
"r" ; s �� " "- is retaining a 40-acre strip of land fronting I-94. retail projects at the intersection of Highway
,,:t4k*:,,,: t t By starting its own industrial park, 25 and I-94.Several big-box retailers includ-
,g a1 71' Monticello will compete with the Monticello ing Target, Wal-Mart and Home Depot are
= _ : Industrial Park, 40 acres of industrial land considering Monticello, and Wolfsteller
14.
k I s y ,, within a mile of the city's proposed develop- expects that within three years the city will
s � ment.The city identified Shawn Weinand,of have some of those stores located in that
Z i ' 4 Osseo-based Progressive Development & area, he said. "They're all interested in
4 - .y •„ �p , Construction, as one of possible several Monticello;we meet with one of them almost
., ti� ,, investors in that property.Weinand also has every other day.'
an interest in another 30 acres,which consti-
�,: tutes nearlyall of the land in Monticello avail- ssmitl@b�oumalscom 1(612)288-2107
' able for industrial development.
: ak\
.
u
Corrections _
' The April 23 article"Savvy duo sparks Meditech"listed Meditech Communications Incl Web site address incorrectly.The
- ,,%. ;_.. - ..•.. .. -_-_�..__� n_a__.-........:......_u.,a aL...........,.i,.......F AA..di+..nh'r nlinnM Tho nnrrori
' I + I i that our frozen products possess on me mar- pruuuci cum aci v"an.u-"-- •---�..- -
ketplace.What we're selling is really high-end folks.There is a world of people out there who
tor banking relationship. products."
are looking not just for a good price,but for,
Multifoods will also unveil a line of Hungry help in making their products successful."
:_. Jack dry baking mixes,to serve middle-market The new product lines maybe part of a larg-
customers who want high-quality products at er strategy."My guess is this is part of a major
b value prices."There hasn't been anyone in food- effort to reposition their company as a
service giving the operator the choice of lower- provider of value-added products,"said John
,4` priced, [high-qualityl national brands with Lawn, editor in chief of Food Management
..
recognition,"Scher said,estimating the market magazine in Cleveland."These products seem
, for small bag mixes such as Multifoods'Hungry to position [the company] as more of a full-
,:,,.,1';,-
ull
Jack line is between$300 million to$400 million. service supplier who can provide a broad
`' Minneapolis-based Riley Hayes and Riley range of bakery solutions to operators."
Hayes Young are working on the launches of
t ` I both lines."What we're talking about isn't just nganison@haloumaicoro I(612)288-2112
e makes the difference. Plant could spark industrial park
1 M&I Bank—a business �, 'ESTATE
BY SCOTT D.SMITH it
11 for years to come. STAFF REPORTER
A cement manufacturers ola�rs to build a company has about 40 such plants in Minnesota
plant in Da on is sparking early planning for and Wisconsin.
a 170-acre mdustnal park. To help win city approval for the plant,
ze cash flow,finance 'mstone Products Co.wants to relocate its Cemstone and four landowners hired John
t. Maple Grove plant to the Dayton location, Shardlow,president and director of planning for
which is on the east side of Interstate 94 just Dahlgren, Shardlow and Uban Inc.,
who live and breathe north of the border between Dayton and Minneapolis,to help the city develop a master
Maple Grove.The new plant would include a plan for an induslrial park, where Cemstone
few structures, the largest one being about would be the first tenant.Plans for such a park
10,000 square feet, on 30 acres. it would are in their infancy since the farmland involved
uccessful relationships 'em 1p opt 40 eo le, said Tim Becken, has neither roads nor a sewer,Shardlow said.
ries. senior vice president of Cemstone operations. @bpm (612)288 2101
The family-owned, Mendota Heights-based eQ
ee creative solutions y�6 05��g�dn?1.3� N
s tiiplzd of perspective ' '
id you find at M&I. WOMEN IN BUSINESS NOMINATIONS SOUGH
The Business Journal is accepting nominations for the annual Women In Business project.
ctive This year,the newspaper will recognize 25 Women Changemakers and 25 Women to Watch.
Qualified nominees for the Changemakers honor will have spearheaded changes with an impact
on their businesses,industries and the community.Proven influence and leadership are key.
Editors will select.25 Women To Watch who are on the rise in the Twin Cities corporate or
entrepreneurial scenes.Nominees should have impressive professional track records,leader-
ship qualifies,potential and lots of drive.
The 50 honorees will be featured in the July 23 issue of The Business Journal.They also will be
recognized at a high-profile,well-attended luncheon held the day before.
, Nominations will be accepted only on our Web site:.lwincities.bizjournals.com.Links to each
of the nomination forms are included in the"Nominations"section,in the left-hand column of
• the home page.Nominations are due April 23;2004.
Contact project editor Diane Cormany with any questions:(612)288-2105.
nber FDIC"" 317-387 C
; 4w
•
!, ir
,•• Iti -
lu
$ 1l,"v\4�\Ay\ .111„, `,
•SA'Al°..''v
\I'ai reek,,,:\7reY \{Nrrb\m"uN'{YN'�
• ,„ ,.
tr \ AA' ','"'041,‘ t r
Y �
y,1VvVe�
review, licenses and building permits in ;',1%:,,' e ,t,,1
one location. \ {' u” 44,,
•Case managers for major development `` '
projects, so if you have a large develop- , t, V. } - ,
ment project, you will have one primary `, k t
contact from the city to help you navigate ' . .
the city process. O N E LEA E
•Free parking for customers.
• Extended hours to make it easier to "Elk River provides two of the most critical components to our success.The first is a qualified and
get services. Every Monday from April 5 motivated workforce.The second is easy access to the interstate highway system.Our customers are
through Sept. 27 (excluding holidays) national in scope and ease of distribution helps make us a competitive supplier."
--Bob Jones,Vice-President,Sales and Marketing,SoftPac Industries Inc.
Minneapolis One Stop will be open until 7
p.m.Call(612)673 DECK(3325)for details. For site and financing opportunities,call (763) 635-1040,
or visit us on the Web at www.ci.elk-river.mn.us.
We'll continue to improve in coming
months.Look for:
• Zoning and property information at ilk ,••••-•,
your fingertips to call a phone number, Rive-i-`--
enter a property's address and hear zon- The Light Industrial Hub of the Northwest Metro
ing, assessor and other automated infor-
mation on the spot.
•Same-day service for routine projects.
This fall, Minneapolis hopes to simplify
the process for routine projects so more \',:•
projects will have over-the-counter — ,--.
}' •Consider it done.
same-day—approvals. i e ''
•Virtual One Stop.Minneapolis is ere ,`sits PRO STAFF can help you get your work done
faster,better,and easier than you ever thought
sting a "Virtual One Stop," giving Cos '''i, possible. Our Talent That Works initiative shows
toners ready access to information and 7. ,• how the flexibility of temporary staffing can
services for their development,business or v,, 1 '..„- •.., u • increase productivity and profitability in today's
home improvement projects on the Web. \ u„ y highly volatile environment. PRO STAFF®You won't have to leave your home or office t A.'
1,,,,,•••.•‘
to get the information you need to get your :`" 1.800.938.WORK ^,
www.prostaff corn talCIZt
projects started. that Works.
®zoos,Dobbs Temporary Services.Inc.S/b/a Pro Staff ersonnel Servkes.
For more information about Minneapolis
One Stop call(612)673-5800.You can also find ' tt
information on our Web site at ‘,, :TECH , COMPANY TAX CREDITS
http://wwwci.minneapolis.mn.us/business. 'AVAILABLE IN C I-I I P P E WA C O U N ""y;, yr n'''c e") , ^ ,
This is only a start and I would love to
hear your ideas directly.Please e-mail me .,' Part of 1-94 Corridor Tec n o y Zone .
your thoughts at rt@rtrybak.corn , 5,mittion in tax credits available to 4, ; ,s -
new and expanding high-technology n
rttinpt"iteS iptltltest vetttrat Wisconsin •,::,,,A,____,1 ;`
>>> B.T.Ryhak is mayor of Minneapolis.Reach him n;, a q,••: w r \;