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5.1. EDSR 09-13-2004 ITEM # 5.1. III City of Elk -� River MEMORANDUM TO: Economic Development Authority CC: Planning Commission FROM: Catherine Mehelich, Director of Economic Development /e DATE: September 13, 2004 SUBJECT: 2004 Semi-Annual Inquiry/Prospect Report Attachments • Inquiry/Prospect Summary:January—August 2004 • Inquiry/Prospect Tracking Report 2001-2004 • Overview Since the year 2001, staff has been tracking inquiries and prospects within a database. Attached is a brief summary of inquiries received for the first half of 2004. The attached Tracking Report indicates trends over the past 3 years in inquiry type, size and status. 2001 - 2004 Industrial Clients Status: • Active Prospects/Delays 9 o Kraus-Anderson,manufacturer 50-450,000sf build Decision Delay (2004) o Advance Resources,manufacturer 60-120,000sf build Decision Delay (2004) o Conveyor systems manufacturer 12-20,000sf build Decision Delay (2004) o Countertop manufacturer 8-12,000sf build Decision Delay (2004) o Robotics/automation manufacturer 20,000sf build Timing Delay (2004) o Machine shop expansion 40,0000sf build Decision Delay (2004) o Aeroacoustics design& fabrication 2,000-sf Financing& Site Delay (2003) o Gamesa,wind turbine manuf. 193,750-sf build Decision Delay (2003) o Cymbet Corporation 50,000-sf lease Financing&Site Delay (2002) • Located Site in Elk River 6 (cumulative) o Gradient Technology,Blaine 13,000-sf build (2002) o Orluck Industries,Dayton 15,000-sf build (2001) • o DisplaySolutions 10,000 sf lease (2003) o Lake Assault Custom Boats 5,000-sf lease space (2003) o Public Infrastructure Contractor,Rogers Purchased 20+ acres of Cascade Industrial Park(2003) o Dimensional Concepts,machining 5,000-sf lease space (2002) 2004 Semi-Annual Inquiry/Prospect Report September 13,2004 Page 2 of 2 • • NA/Unknown (2004) 12 • Located Site Elsewhere 16 o Computer Motion Imaging Chaska/Chanhassen area proposed (2001) o KitMasters of Ramsey Detroit Lakes area -vacation home,incentives (2001) o Dynamic Packaging Anoka proposed—warehouse,incentives (2002) o High Tech Data Center Delay—wants a turn-key building near Mpls (2002) o Custom Turning of Blaine Big Lake—outside storage,incentives (2002) o Bixby Energy Systems of Elk River Closing on existing building in Anoka (2002) o DiaServ, thermoform plastics Stayed in Blooming Prairie (2002) o JBC Industries,water jet cutting Big Lake - 15,000-sf lease space,incentives (2001) o Antioch/Creative Memories Expansion Stayed in St. Cloud—land price (2001) o Horizon Thermoform Closed business (2001) o Mach Glass Stayed in Big Lake lease space (2001) o Tool grinding, Coon Rapids Considering Blaine and Ham Lake (2003) o Precise Metalcraft of Dayton Ramsey—land price and incentives (2002/2003) o Plastics recycling company, Indianapolis Considering Jordan area (2003) o Kelco Supply,Brooklyn Center Building in Brooklyn Park—50,000sf(2004) o KF Controls,New Brighton Building in Coon Rapids—5,000sf(2004) 411 • F:\SHRDOC\EDA\PROSPECT\2004 Inquiries\04 inquiry.EDAmemo.doc -I/ of lk .......„......„ River 13065 Orono Parkway Economic Development Department Elk River,MN 55330 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 Light Industrial Size Small (Less than 10,000-sf) 16 5 5 8 Medium (10,000-sf to 29,000-sf) 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,cumulative 2 1 3 6 NA/Unknown 29 10 19 Located Site Elsewhere 7 5 3 2 Big Lake 2 1 Ramsey 1 Other 5 4 2 2 III Phone:763.635.1000 Fax:763.635.1090 F:\SHRDOC\EDA\PROSPECT\2004 Inquiries\2001.2004summaryrpt.doc www.ci.elk-river.mn.us Notes/History Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 Range: 1/1/2004-12/31/2004 Number of Contacts: 67 Contact : Note 6/1/2004 Looking at city website. Inquiry for large industrial site for distribution center 600,000 to 1-mill sf,approx. 100 jobs. Purely distribution/warehouse. Referred to Rogers. Contact : Note 1/15/2004 Has client interested in buying 10-15 acres for lumberyard. Interest in Gange property(found on website).Requires outside storage. Fwd to Teresa Tschida,Christian for Cascade Industrial Park. Contact : Note 8/31/2004 discussed Micro Loan Policy&Application in more detail,discussed the same information including timing with her broker at her request Note 8/4/2004 is considering purchasing a building downtown,inquired about possible financing Note 7/15/2004 emailed the micro loan policy&application for downtown building rehabilitation. Contact : Note 6/14/2004 Looking for site for restaurant. Referred to Chamber of Commerce. oNTe 4/2/2004 Located in Osseo,interested in city emporium building for lease. Office,some retail,mostly automobile leasing approx. 16 cars. Has good references from City of Osseo(12 yrs). Per city staff the city emporium building is not for sale or lease at this time. Contact : Note 7/13/2004 Inquired about availability of Back to the 50s building,informed her that the Eagles had purchased the building Contact : Note 4/24/2004 Email from Mark regarding desire to open a Sears Dealer store in Elk River. Family is from Minnesota. Currently works for Sears corporate. Recently accepted as a candidate to open a Sears Dealer store in Elk River market. Goal is to lease a retail site of approx. 10,000sf in high traffic area. Forwarded message to Elk Ridge 18-acre retail development and Chamber of Commerce for follow up. Contact : Note 2/9/2004 Inquiry referred by Jack Ellis(Bank of Elk River). Selling business in Nowthen. What is warehouse space value/worth? 2 buildings(810sf&110sf). Referred to Co.Assessor. ... .................... Contact : Note 7/12/2004 Follow up phone call,left message. Follow up research during July 2004,decision on final site location by August 1,2004. Anticipated owner occupancy Spring 2005. Noe 6/28/2004 Submitted proposal for the Elk Path Business Center. Note 6/10/2004 RFP Community and Site information for new manufacturing facility in the north or NW suburban area. Requires minimum 10-acre industrial site for initial 90,000sf with room for Created 9/7/2004 at 7:20 PM 1 l'Ir'* * Notes/HistoryCatherine Mehelicf, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 • another 60,000sf. High electrical demand. Phase I=90 jobs,Phase II+60 jobs. Contact : Note 7/14/2004 Per Harlan,Jonathan is son of Richard(David)Distad who is controller at Steiner Development Inc. in Wayzata. David is a shareholder in Genesis,as is Paul Steiner,the found of the company. Note 7/13/2004 Looking at redevelopment opportunities with dentist office on northside of Hwy 10 downtown. Has friend who is interested in purchasing for a clothing boutique. Originally from MN. Also interested in other redevelopment areas for mixed-use project and industrial land. Requested info on EDA/Brown property. Would like initial discussion about a"rolling option"and to do "green buildings". Contact : Note 4/20/2004 Industrial lease space inquiry rec'd today, E-mailed lease space list,profile,business financing and newsletter,faxed lease space list,profile, business financing and referred him to Gary Santiwire&gave phone#,company called back to get the MN Fab.&Machine contact info., gave him Ken Millslagle and Steve Dittbenner's names Note 4/19/2004 Light industrial lease space inquiry. Forwarded to Heidi for follow-up. Contact : Note 5/14/2004 asked for typical rent rates for industrial lease space,provided him with lease space list and • informed him that some property owners provide the City with rates but most prefer not to divulge the information in order to negotiate with potential leasors Contact : Note 8/24/2004 Inquiry from Kevin Maas for GRE facility,needs 8-10 acre site and outside storage for pipes. Scheduled meeting to discuss. Contact : Note 6/28/2004 Inquiry regarding city-owned emporium site and former Ron's Foods(NW corner of 169&Main St)for client that needs a site for a bank. Provided him the contact for Commonweal Development(SW corner of 169&Main St.) Contact : Note 4/5/2004 Client-Standard Water Controls needs 25,000sf(3500sf office/balance warehouse)for washbay,repair area for service vehicles,3 stalls. Referred to Elk River Business Park& Cascade Industrial Park-no city$assistance since commercial-service operation. .......................... Contact : Note 1/5/2004 Inquiry for 2 light industrial clients. 1.requires 3-4 acres for 20-50,000sf bldg Referred to Elk River Business Park 2.requires 2.5-3 acres for 13-20,000sf bldg • referred to city-owned Joplin lot(Gradient Technology) Contact : Note 8/4/2004 Follow up note from Teresa T. CDM is just looking for a(home)office to purchase Created 9/7/2004 at 7:20 PM 2 Notes/History Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 • 1500-2000sf. Parking for 6 cars and access for FedX delivery truck. Working with Teresa to ID options. Note 4/12/2004 Manufacturer of bulk conveyor systems(leasing 10,000sf until Spring 2005. Needs 2-3acres for 15-20,000sf building. Lives in Elk River.Has 7 full-time,if a 30,000sf building then anticipates adding 16 full-time jobs. Referred by city website looking at sites. Recommended Elk River Business Park, Roma Tool building and Cascade Industrial Park. Adding equipment; part of expansion. Scheduled site visit. Note 4/12/2004 looking to build-referred him to Cathy Contact : Note 7/23/2004 Needs to reschedule meeting,adding another partner/investor. Will call to reschedule. Note 6/9/2004 Update from Eric,not proceeding with K&L property. Cost is too high. Needs other site options. Referred to Elk River Business Park,schedule meeting. Note 5/24/2004 Couple live in Elk River. Need to expand business. Fabrication for cutting granite,stone countertops. Need 5000-7500sf, have 5 people. Interested in building with room to lease out. Rock faced block construction. Looking at K&L Addition. Contact : Note 2/18/2004 Building"The Woods"at Elk River Station Development. Reqested info on the Downtown Revitalization Project&to schedule meeting to discuss. Wants to provide info to the new residents. Referred to city website. L__tact : Note 2/16/2004 Inquiry for 2 or 3 automotive related profit centers that share common area reception& administration expenses. Looking for 2500 to 3500sf with room to expand to 5000sf,new construction, high visibility, Elk River and Rogers corridor. Working with John Weicht to expanc Elk River Muffler building. Referred to Chamber of Commerce. Contact : Note 4/23/2004 Inquired about lease or sale of city owned emporium property for dance studio,needs 9000sf. Referred to Chamber of Commerce. Contact : Note 7/29/2004 Added to EDnewsletter mailing list. Note 7/19/2004 Doing property valuation for Consolidated Lumber. Contact : Note 3/10/2004 in need of a 40,000(10,000 office)existing industrial building,provided information on the former Roma Tool building ...... ............. Contact : Note 1/7/2004 Has rental space available for light industrial lease. Fwd to Heidi for follow up. I act : • 8/19/2004 discussed MTI program with Bob Michalek, Bob mentioned that plant layout assistance would not be needed because Jim Studee has expertise in that area Note 6/29/2004 Growing business,looking for 50,000sf with room to expand to 150,000sf,or 6-month lease. Created 9/7/2004 at 7:20 PM 3 Notes/History Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk RiVE, MN 55330 • Talking with Elk River Business Park on lease space and looking at the old Roma Tool building Met with him to discuss financing options and land sites. Note 6/16/2004 Send MTI program info. Contact : Note 4/21/2004 Looking for on website for client who needs office/warehouse space 1800-2500sf to lease. Distribution. Referred to Elk River Business Park and Gary Santwire. Note 4/21/2004 client needs 1,800-2,500 SF Contact : Note 9/3/2004 called to thank staff for providing lease space options, has sent a letter of intent for 1 bay in Elk River Business Park(Marty Fisher),asked about overnight parking,referred him to Scott Harlicker Note 8/16/2004 4-5,000 SF(1,500 office&3,000 warehouse)needed with 1 dock door, 1 overhead door,and room for up to 25 parking spots for work vehicles Contact : Note 2/27/2004 Email from Heidi. Follow up regarding client to build in Elk River(has purchased land). Thinks MN Community Capital fund would be good match. Company is leasing space in Ramsey. Ha: 5-10 people. Manufacturer of specialty metal,fabrication,eg.Polaris,Artic Cat. Looking at doing SBA504. G...,tact : Note 8/12/2004 Scott Harlicker referred him to us since he needs outside storage,gave him business sites map and industrial lease space list Contact : Note 2/1/2004 Has medical device company that is interested in partnering with the med-device company subsidiary of Elk River Concrete/Cretex Companies. Note 1/7/2004 Inquiry for office 5-10,000SF for hi-tech company. Referred to Chamber. Contact : Note 3/29/2004 Commercial-service business interested in buying property-looking for city-owned. Is talking to Big Lake also,Elk River anything to offer? Forwarded to private land brokers. Contact : Note 5/14/2004 requested Tax Abatement policy&application Note 3/10/2004 Elk River Business Park,commercial eligible use per K. Maas @ Amcon? Per MM,possible a: CUP. Note 1/27/2004 Inquired about Mulvaney Pointe,signage for Business Park zone. Contact : Note 1/16/2004 Working with Cymbet for facility in Elk River,along with AMCON for Elk River Business Park. • Integrated Real Estate Inc. Interest in building space for business incubator program,working with Harlan on concept. Contact : Created 9/7/2004 at 7:20 PM 4 Notes/History Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 7/1/2004 inquired about available residential land,transferred him to Michele McPherson Contact : Note 2/10/2004 Forward by Scott Harlicker. Interested in industrial land and TIF assistance.Looking for business financing incentives for industrial businesses;researching for his boss. Contact : Note 5/25/2004 5,000 industrial lease space needed,referred him to Mark Rothfork based on size needs Contact : Note 4/21/2004 Marty Fisher told Cathy they were thinking of building in Elk River Business Park,however they did not mention that to me Note 4/20/2004 Follow Up Call Made on 4-20-04,company did not purchase the builidng in Zimmerman,they are still considering Elk River and would probably go into the space on Industrial Blvd.(the former Roma Tool space) Contact : Note 4/8/2004 Looking for sites to expand. Needs city services,build 40,000sf initial with room to expand to 60,000 or 80,000sf. Requires visibility and good access. Current 2.5 acres and 15,000sf building. Would like to do 1031 exchange on building. Faxed site info. act : . - 1/5/2004 Inquiry for redevelopment of Arrow Building Center,including old NAPA and Eagles buildings. Build new wholesale lumberyard on site. Demo/acquisition eligible for TIF or TRF? Suggested he bring cost estimates and site plan for discussion. Contact : Note 8/30/2004 Company is breaking ground on 5,600sf building in Coon Rapids. No TIF or loans provided(to( small of project). Looking at abatement. Was not impressed with Marty Fisher's response time for Elk River Business Park. Note 8/23/2004 Left message for Eli to follow up on status. Note 5/6/2004 Design,fabrication and assembly of control panels for Kramlinger-Furlong, Inc. Control systems for concrete production applications,ie Cretex and Aggregate Industries. Employs 2 full-time, 1 part-time&2 subcontractors. Interested in constructing new building for business expansion in NW metro. Desires 5000sf. Timing Sept/Oct.2004. Working with Stone Construction of Blaine.Preferred Bank. Talked with Ramsey. Looked for sites on city website. Minimum 1.5acres. Referred to Elk River Business Park-Premier. Contact : Note 5/14/2004 Email msg from Heidi. Client needs 30,000sf. Inquired about old Roma Tool building and other sites. Called and left message. Note 5/14/2004 building or ready-to-go site to accomodate 65 employees 'act : • 8/20/2004 Responded with letter and info on status of Northstar Commuter Rail project. Note 8/17/2004 Rec'd letter on project status,requested additional infomation on proposal sites. Note 2/23/2004 Follow up phone call/email to Dave A.monthly. Waiting for client to review the proposals. Created 9/7/2004 at 7:20 PM 5 Notes/History k Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 IIP2/19/2004 Submitted proposal for both Elk Path Busines Center and Elk River EDA Property. Note 2/3/2004 Email msg from Jim Gromberg,Connexus regarding Kraus-Anderson prospect. Needs 30acre: for initial 50,000sf up to 450,000sf manufacturing and office. Currently employs over 500 people in multiple locations. Phase l=150jobs. Contact : Note 7/28/2004 Has client interested in Cinema building. Questions about proposed downtown redevelopment project,parking,etc. Contact: Note 8/13/2004 7,000 SF industrial lease space needed,e-mailed him industrial lease space list and recommended that he contact Mark Rothfork or Marty Fisher based on his size needs Note 3/29/2004 Full-service letter shop&mailing service. Saw Orluck article,didn't think Elk River had much tc offier but wants to check again. Will need more space in 6-12 months. Scheduled follow up site visit. Contact : Note 8/23/2004 Emailed Sean S.at Ramsey to continue follow up with the company. Note 7/26/2004 Per Marty Fisher,company is negotiating with current landlord to stay in building. Has some time on lease yet. Note 5/12/2004 Met with Marty Fisher and company. Wants square building,precast panel construction. Prefers 2.5 acres,keep cost under$1 mill. Amcon to send a proposal(completed). 5/12/2004 Discussed project with company. Working with Ramsey for 2.5acres. Looking for 20,000sf expandable to 30,000sf. Has a machine shop that would lease in the new building. M&O is custom metal fabricating for food processing and architectural industries,job shop. Looked at MF&M building but doesn't want metal building. Keep project under$1 mill? Has 10 full-time jol at$14-18/hr. Faxed him the Roma Tool building info. Has 1.5yrs on lease yet. Note 5/6/2004 Siting Team Meeting-good project for Elk River Business Park. Had list of follow up questions Note 4/21/2004 Completed&submitted Customer Requirements form about the project. Reviewed and scheduled Siting Team meeting to discuss 5/6/04. Note 4/21/2004 Rec'd a call from company,Leroy Lindenfelser referred him to us,E-mailed him the industrial lease space list and April 04 newsletter, had Cathy call him about building Note 4/16/2004 First got inquiry from Leroy Lindenfelser of The Bank of Elk River,faxed Leroy Customer Requirements form to provide his client Note 2/6/2004 Inquiry from LeRoy Lindenfelser,Bank of Elk River via email regarding metal fabrication client leasing space in Anoka-Ramsey area. Seeking to purchase or build 20,000sf with room for up to 30,000sf. Incentives? Responded re:the Roma Tool building,micro loan and MN Communi Capital Fund,MN Investment Fund. Suggested a meeting with the company be arranged. Contact : Note 3/17/2004 Looking at 616 RR Drive(former Dentist Dr.Shields)for office. Inquired about"fix-up funds". Faxed micro loan policy application for building rehab and referred to Heidi. C act : 4/13/2004 4-6,000 light industrial lease space needed with drive-in and overhead door,inquired about financing,provided him lease space options and Micro Loan Policy&Application,followed up a few times(meeting scheduled to discuss Micro Loan Policy)but he was a not show) Created 9/7/2004 at 7:20 PM 6 127 Notes/History Catherine Mehelict, City of Elk River ................ . 13065 Orono Parkway Elk Rive, MN 55330 • Contact : Note 7/14/2004 asked if he needed a permit to start a mobile auto maintenance service, referred him to the B& E Department,followed up and he said his questions were answered Contact : Note 1/6/2004 Considering different locations-requested Community Profile for market research. Faxed. Contact : Note 2/27/2004 Msg from local manufacturer Plant Supervisor regarding request for info on downtown condos. Referred to website for project updates and pre-sale information to come. Contact : Note 2/5/2004 Submitted siting proposal for Joplin Lot. Proposal accepted. Orluck Industries. Note 1/13/2004 Offered last lot in Big Lake,really wants to be in Elk River. Is the Joplin lot still available? Contact Note 4/13/2004 Inquired about 5 acres of industrial land for sale,requires outside storage. Sealcoating company out of Loretto,MN. Owners live in Elk River. Referred to Cascade Industrial Park. Contact : 411 1/12/2004 considering relocating to Elk River from Wisconsin,office space needed for physical therapy office,asked demographic questions,provided him information about the Community Profile an referred him to the City Website where he could download the Profile Contact : Note 8/3/2004 Looking for a small lot or available lease space for restaurant. Referred to Chamber of Commerce. Contact : Note 3/17/2004 1,000 light industrial lease space needed for assembly/office use,asked for financing information,sent financing options Contact : Note 7/29/2004 Two retail businesses interested in portion of Elk River Business Park and Elk River Crossing. Furniture store and tractor supply. Scheduled meeting with Michele M.and me to discuss proposed project and issues. Contact : Note 6/23/2004 client needs light industrial lease space,referred her to Gary Santwire Note 2/27/2004 client needs 4-6,000 light industrial lease space,referred her to Gary Santwire Contact : 3/10/2004 1st Client needs an existing building 30-50,000sf with access to rail. 2nd Client needs 17-20 acres for 300,000sf building near rail. Referred to Becker. Elk River has no available sites with access to rail. Created 9/7/2004 at 7:20 PM 7 ► Notes/History Catherine Mehelict, City of Elk River 13065 Orono Parkway Elk Rive, MN 55330 1110 Contact : Note 5/3/2004 Per phone msg company is evaluating site information from communities. Has 1.5 yrs left on lease. Will keep Elk River in mind. Schedule follow up contact in 1 year. Note 4/5/2004 Wants to relocate company to Rogers-Elk River area. Designs,builds and installs pre-fabricated robotic systems. Leasing 41,000sf including 6500sf office. Downsize to same office sf+20,000sf production. Has 1.5 years left on lease. 13 jobs,was at 35 jobs. Follow up regarding MTI program,micro loan and the old Roma Tool building. Contact : Note 2/20/2004 Interested in moving business to Elk River. Looking for space to lease. Referred to Lynn Caswell for Elk Path Business Center spec building. Contact : Note 4/23/2004 Inquired about M&A building,faxed her information on the building .................... Contact : Note 3/19/2004 looking for a restaurant site in Elk River or Otsego,referred him to Chamber Contact : Note 3/24/2004 considering Elk River location,requested statistics,provided him info.from the Community • Profile ......................... Contact : Note 4/21/2004 Ann Breur inquiring about city-owned Joplin&Business Center Drive lot,available? Responded that the city has a proposal out for the site and it was not available at the time. Note 1/6/2004 Inquiry about city-owned lot at Joplin&Business Center Drive,for new office construction. Lot reserved for Light Industrial proposal-Orluck. Referred to Chamber for office sites. Contact : Note 2/13/2004 Lead from Money Breakfast-company located in Albertville interested in expanding. Urgent need for space. Left voice message. Contact : Note 1/9/2004 Called Jim Gromberg,Connexus for follow up. Trisha is working with Sportech on causes and options. Problem could be custom-built machines. Note 1/7/2004 Concern about amount of first electric(Connexus)bill on new expansion-too high. Has hired outside consultant to research but could be real problem for Elk River industries. Working with Connexus to evaluate situation. Contact : Note 8/24/2004 Decision to build instead. Left msg to follow up. Note 7/21/2004 2,500-4,500 light industrial lease space needed,provided him industrial lease space info. o e 7/20/2004 Elk River resident, Needs 4000sf(incl. 1200sf office)manufacturing space in Elk River to lease for design,fabrication of food processing equipment. Needs within 3-4 months. Referred to Heidi for follow up. Created 9/7/2004 at 7:20 PM 8