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6.0. EDSR 10-11-2004 ITEM # 6. ,J1/ • City of ' Elk River MEMORANDUM TO: Economic Development Authority CC: EDA Subcommittee Members Incubator Advisory, Finance and Marketing FROM: Catherine Mehelich, Director of Economic Development /1C DATE: October 11, 2004 SUBJECT: Consider Adoption of 2004-2007 Economic Development Strategic Plan Attachments • • Discussion Notes from the 2004 Strategic Plan Work Sessions • 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. The original Strategic Plan was adopted in May 1997 with participation from a variety of community leaders. The Strategic Plan was modified in 1999 by the EDA, HRA and City Council to reflect a reorganization of priority issues 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. Discussion notes from the work sessions are attached. 2004-2007 Priority Goals and Strategies Following is a comparison of the 1999 issues and those issues most recently modified by the committee: 1999 Issues 2004 Issues 1. Industrial Base 1. Industrial Development 2. Business Retention& Growth 2. Central Business District (CBD) • 3. Marketing Strategy 3. Transportation 4. Develop/Redevelop East Hwy 10 4. Commercial Development and the Central Business District 2004-2007 Economic Development Strategic Plan EDA Meeting October 11,2004 Page 2 of 2 • The 2004-2007 Strategic Plan was modified since the July EDA meeting in which the EDA provided input on Transportation and Commercial Development strategies. Staff will provide a brief presentation of the priority goals and strategies identified in the attached 2004-2007 Economic Development Strategic Plan. The strategies are the action steps which allow staff to move forward to complete research on various issues and bring information and recommendations back to the EDA, HRA and City Council regarding such issues as appropriate. If there are specific action steps that a majority of the EDA Commissioners are in disagreement with, then these steps should be removed from the Plan. Action Requested Staff recommends that following the EDA's feedback on the modified Plan and its strategies, that the EDA then consider adoption of the modified 2004-2007 Economic Development Strategic Plan. Following the EDA's adoption of the Plan the HRA and City Council will be asked to consider the modified Plan at their upcoming meetings. • • F:\SHRDOC\EDA\STRATPLN\2004 Update 10.11.04 EDA.doc City of Elk River 110 Economic Development Strategic Plan 2004-2007 Work Session Notes 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 • PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT 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 • F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc • PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT What is the issue? - Method to define the boundaries - Determining preferred uses Why is it an issue? - Areais 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 F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc • PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT 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 • • F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc PRIORITY ISSUE #3: TRANSPORTATION What is the issue? - Increasing amount of traffic causing congestion - Local and regional connections - Transit (public) - Loss of available land for road systems as it becomes developed Why an issue? - Congestion at peak times - Specific areas of poor traffic flow daily - Lack of jurisdictional control and input on plans 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 - MnDot plans could isolate/limit access to areas (e.g. downtown) VISION ALTERNATIVES 3-5 years • - Better traffic flow - Proactive planning and guiding of development based on various needs (industrial, commercial, residential, commuter,public safety, etc) - Alternative east-west route(s) to Hwy 10/160 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 jurisdiction • Long term—MnDot Plan for Hwy 10—20 years IP F:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc IIIPRIORITY ISSUE #3: TRANSPORTATION STRATEGIES Local proactive leadership role to generate improvements • require connections, service roads • limit development by land use (interim uses to preserve corridors) • make unpopular improvements to existing roads Alternative route(s) for East-West connections;partner regionally No bypasses Encourage service drives along areas of commercial development (eg East Hwy 10) Proactive planning in areas with redevelopment/development opportunity, consider transportation connections of area as part of the plan (eg Arrow Building Center, Cretex and Contour Mold area) Better accessibility for businesses along Hwy;redevelop accesses Utilize City's Transportation Plan • EDA role?? Identify transportation planning partners and roles Council Planning Dept/Commission Engineering EDA—as advocate (eg oppose bypasses, not in best interest of the city's economic growth) • 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 - No one wants to locate commercial on Hwy 10 (east/west) - Large retail or retail clusters require substantial sizes of land Why an issue? - Community interest in more options - No land left for development (nearest is gravel mines and East Hwy 10) 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 - Identify the desired types and sizes of commercial development - Develop planned commercial corridor(s) that provide development/redevelopment opportunities to guide future inquiries - A focus on Hwy 10, retain the existing commercial on Hwy 10 and add to compliment the area - Identify areas for desired commercial to go,what are the barriers to locating there now, how to get them where we want them 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 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. Explore/consider subsidy/incentives for desired uses and areas Consider for commercial overall or in certain areas What do other cities do? Eg Maple Grove redevelopment of gravel mines to retail,was TIF used? Consider the Chamber to market the areas Support the commercial areas identified in the Comprehensive Plan CoRd 33 &Hwy 169 Elk River/Ramsey border • Be proactive to designate large area for"shopping mall";market when ready for desired use Like "Arbor Lakes"—should be walkable and integrated • r:\SHRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc • City of Elk River 2004-2007 Economic Development Strategic Plan • Revised October 2004 Revised November 1999 Original Plan Adopted May 1997 • Elk River "A historic river community serving as a regional center with a favorable location near the Twin Cities metropolitan area" Our mission is to actively participate in economic development by utilizing available resources to leverage • viable and healthyinvestments in our community. Such tY investments will create diverse job opportunities as a result of a stable and growing business and industrial base. We will strive to provide quality services, maintain a favorable tax rate, supply full-cycle housing options for our residents, and foster an environment that will result in substantial growth of our local economy. S • Modification Committee 4:4 City Council Economic Development Authority Housing and Redevelopment Authority • EDA Business Incubator Advisory Committee EDA Finance Committee EDA Marketing Committee Facilitator: Jim Brimeyer, The Brimeyer Group • • Major Issues andGoals u Industrial Development • Attract new businesses and expand existing businesses to increase the city's industrial tax and job base Central Business District (CBD) � • Undertake planning and activities that facilitate redevelopment in the Central Business District n Transportation • Advocate and support proactive planning for improvements to the local and area transportation system �t Commercial Development • Encourage desired commercial development in identified areas • I . Industrial D ,„ , , , Make available several location options for industries • Obtain joint development agreements for Elk Path Business Center and Elk River Business Park • Consider options to reduce landowner cost of development • Develop a "price point" policy • Consider making current City/EDA-owned land • available (Brown, Cargill) • Complete initial phase of roads and utilities in all parks • Consider a program to purchase portions of private parks over time — with options to purchase additional land • Consider unique attributes/vision for each park (ie. "Elk River Energy City Industrial Park", Northstar Corridor) 1110 • Industrial Development Continued . . . • Develop unique and more generous business incentive programs (TIF, Tax Rebate Financing, Micro Loans, etc.) • Maintain consistent marketing image as "The Light Industrial Hub of the Northwest Metro", materials and methods. • Maintain and build networks with banks, brokers, chamber, existing businesses, media, and others. • X Maintain annual Business Retention & Expansion visits with participation from elected/appointed officials and Chamber, promote expansion incentive programs. • Maintain prospect/inquiry tracking and distribute semi- annual results to the EDA and Planning Commission. • Utilize DEED's Manufacturing Week to showcase existing firms. • Utilize GIS to manage data of industrial real estate • Maintain inventory of available industrial land/buildings X._." Maintain commitment to the Business Incubator Program ■ Identify developer and location for "next generation" incubator building ■ Explore continued program funding options • • CentralU. Business District (CBD) aEw • Complete long range master plan for guiding vision of the CBD; break down activities into "manageable chunks" • Identify priority redevelopment areas • Develop list of "preferred" uses, including: • Office • Mixed use • Residential • • Specialty retail • Restaurants/bars • Consider incentive programs, in addition to Micro Loan, for commercial building rehabilitation ▪ Design connections (to river, businesses, Lions Park, schools, etc) • • III . Transportation t , • Undertake a local proactive advocacy role to generate improvements • Consider connections, service roads within developments • Limit development by land use (interim uses to preserve corridors) • Make necessary improvements to existing roads • Consider alternative routes for east/west connections (partner regionally) • • Object to any Hwy 10 bypass of Elk River • Encourage service drives along new commercial areas (e.g. East Hwy 10) • Consider transportation improvements in areas with redevelopment/development opportunities • Consider transportation connections/traffic flow for problem areas (e.g. Elk River Concrete and Contour Mold area) • Accessibility for businesses along Highways 10 and 169 • Support the City's Transportation Plan; support the Planning Dept and Engineering staff in the Plan's implementation. • • IV. Commercial Development. • Consider focus area study of the gravel mining area to identify commercial sites • Consider development of commercial areas identified in the Comprehensive Plan • Co Rd 33 and Hwy 169 • Elk River/Ramsey border • X Identify areas for redevelopment and determine priorities X Designate large area for "shopping mall" or clustering of retail that is pedestrian friendly and integrated • Utilize the Chamber of Commerce for marketing availability of commercial areas (land and building space) • Explore/consider neighborhood commercial (the "corner store") • Explore incentives to lure desired businesses to locate in areas that the market is not interested in at this time (e.g. Hwy 10)