7.0. EDSR 07-12-2004 ITEM # 7.
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City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: July 12, 2004
SUBJECT: Economic Development Strategic Plan Update
Attachment
• DRAFT Priority Issue Strategies,2004-2007 Economic Development Strategic Plan
Background
• The Economic Development Strategic Plan provides a framework for the Commissions to work within
and focuses staff energies on those priority areas important to the economic health of the City.
In March and May 2004 the EDA participated in two work session discussions for the Economic
Development Strategic Plan Update. Jim Brimeyer facilitated the work sessions. Additional
participants included the City Council, HRA, and EDA subcommittees Incubator Advisory,Finance,
Marketing, and city staff.
The group identified the following 2004-2007 priority issues in order of importance:
• Industrial Development
• Central Business District (CBD)
• Transportation
• Commercial Development
Issues for Discussion
For this meeting, staff would like the EDA to provide feedback on the attached list of strategies for
addressing the Transportation and Commercial Development issues.
Next Steps
Following is a timetable for review and adoption of the Economic Development Strategic Plan:
July- EDA provides feedback for staff on Transportation and Commercial Development strategies
July- Staff drafts action steps based on the strategies and completes draft Plan
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August-Sept. - EDA, Council and HRA considers adopting the 2004-2007 Strategic Plan
ID A ,, 7' ' -
• City of Elk River
Economic Development
Strategic Plan 2004-2007
PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT
What is the issue?
- Type of development preferred
- Manufacturing(value added,highway)
- How to increase the tax base
- How to increase the employment base
Why an issue?
- Nothing is happening
- Not staying competitive
Consequences of doing nothing:
- May lose existing businesses
- Continue to have empty business parks
• - The debate goes on.....and on....
VISION ALTERNATIVES
Parks are filling in with "desirable businesses"
What makes them desirable?
- Job type
- Benefit program
- Career opportunities
- Retirement plans
- Household supporting wages
- Diverse services/products
- Quality construction
- Utility costs are reasonable
- Land costs are"affordable"
BARRIERS
• Cost of land
• Offers from other cities
• Reluctant owners (to sell land)
• • Ability to provide utilities on a timely basis
F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
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PRIORITY ISSUE#1: INDUSTRIAL DEVELOPMENT
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STRATEGIES
Expand/grow existing businesses
Reduce the cost of development
- Land cost
- Utilities
Use city-owned land
- Make utilities available
Have options available
- Joint marketing with private owners
- Designate several locations for businesses
- Develop a"price point"policy
Develop a more generous incentive program
Provide an opportunity for owners to be part of the development
Consider City ownership of all parks, financed over a multi-year period
• Develop a program to purchase portions of private parks over time—with options to purchase additional
land
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
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PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT
What is the issue?
- Method to define the boundaries
- Determining preferred uses
Why is it an issue?
- Area is divided—no connection
- Lack of an overall plan
- "Historical"issues
Consequences of not addressing:
- Lose ties to the City's past
- Lose"historic" structures
- No connection to the river
- Lose"traditional"uses
- Minimum opportunity for desirable redevelopment
VISION/ALTERNATIVE
New development/redevelopment
- The Bluff Block
- Jackson Square
• - Development north of the tracks
- Long range plan for entire CBD
Storefront rehabs
Rear access to businesses
Orientation toward the river
Pedestrian orientation
Service,boutique uses
BARRIERS
Lack of overall plan in"manageable chunks"
May lose some existing businesses
Physical separation (tracks,highway) of the area
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
PRIORITY ISSUE#2: CENTRAL BUSINESS DISTRICT =/ !
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STRATEGIES
Develop long rang plans with"manageable chunks"
Develop list of"preferred"uses
- Office
- Mixed use
- Residential
- Specialty retail
- Restaurants/bars
Incentive programs developed
Options for connecting the areas
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
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PRIORITY ISSUE#3: TRANSPORTATION
• What is the issue?
- Increasing amount of traffic causing congestion
- Local and regional connections
- Transit (public)
Why an issue?
- Congestion at peak times
- Specific areas of poor traffic flow daily
Consequences of doing nothing:
- Development opportunities bypass Elk River
- Customers/residents/businesses perceive traffic as problem in the community and leave Elk River
- Public safety
VISION ALTERNATIVES
- Better traffic flow
- Proactive planning and guiding of development based on various needs (industrial,commercial,
residential,commuter,public safety, etc)
BARRIERS
• • Limited availability of undeveloped land
• Cost of infrastructure/operations
• Time to plan/design/build
• Cost of acquisition/relocation of existing properties
• Roads with issues are not necessarily under the City's juridiction
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
• PRIORITY ISSUE #3: TRANSPORTATION
STRATEGIES
Local proactive leadership role to generate improvements
• require connections
• limit development by land use (interim uses to preserve corridors)
• make unpopular improvements to existing roads
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
PRIORITY ISSUE#4: COMMERCIAL DEVELOPMENT
What is the issue?
- Appropriate locations for additional commercial development
- Types of desired commercial development
Why an issue?
- Community interest in more options
Consequences of doing nothing:
- Residents will shop where there are more options i.e. other cities
- Land will develop as residential (less tax base)
- Existing businesses may move to other cities with critical demand
- Development opportunities will bypass Elk River for other communities
VISION ALTERNATIVES
- Definition of the desired types of commercial development
- Develop planned commercial corridor(s) that provide development/redevelopment opportunities to
guide future inquiries
BARRIERS
• Limited availability of undeveloped land
• Redevelopment/relocation costs
• MnDot Transportation Plans (interchanges)
• Timing of market demand and interest
F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc
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• PRIORITY ISSUE #4: COMMERCIAL DEVELOPMENT
STRATEGIES
Focus area study of the gravel mining area to identify commercial sites.
Identify areas for redevelopment and determine priorities.
Provide incentives to lure desired businesses to locate in areas that the market is not interested in at this time.
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F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc