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)