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EDSR MEMORANDUM 11-08-2004 • "/•// City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: November 8, 2004 SUBJECT: Strategic Industrial Marketing Activities Report Attachments • Ad featuring Sportech, The Business Journal, October 22, 2004 • Orluck Industries Ground Breaking Photos • Thank You ad,Elk River Star News, October 13, 2004 • I. Product Offering Strategy Industrial Land Issue The landowners of Elk River Business Park and Elk Path Business Center have indicated interest in participating in a master development agreement with the EDA for the development of their industrial/business park property. Staff continues to await a response from the landowners regarding the revised Contract for Initial Sale and Development. 11. Competitive Strategy A development study was recently completed by the MN chapter of the National Association of Industrial and Office Properties (NAIOP). The study includes 78 Twin Cities communities including Elk River. The results indicate the variations in processing times and fees. The study was based on a 50,000 SF office/warehouse building on 4.1 acres of land that would need to be rezoned from residential purposes to commercial. Based on the results of the study, staff prepared a side-by-side comparison of Elk River with its key competitor communities identified in the 2002-2004 Strategic Industrial Marketing Plan. This summary report will be presented at the December meeting. III. Key Account/Lead Generation Strategy Minnesota Real Estate Journal (MREJ) Conference Staff attended MREJ's Industrial Real Estate and Logistics Conference in Golden Valley on November 3`d. The event was attended by approximately 85 developers,brokers and • economic developers. Strategic Industrial Marketing Activities Report November 8,2004 Page 2 of 2 • IV. Promotions & Advertising Strategy New Ad Featuring Sportech The attached ad featuring Sportech appeared the October 22nd issue of The Business Journal. V. Public Relations Strategy Orluck Industries Ground Breaking Event The Orluck Industries Ground Breaking event was held on October 21st. Staff coordinated the invitations,refreshments,videotaping, and photography. Approximately 20 people were in attendance. Event photos are attached. December 2004 Economic Development Newsletter Staff is working with Wolf Marketing&Media and Tammy Miller Design on the sixth edition Economic Development Newsletter, the Progress Partner Dispatch. It will be distributed to a list of approximately 500 in early December. VI. Strategic Partnership Strategy Downtown Revitalization Project The City Council adopted the Tax Increment Financing Plan at its November 1st meeting. The HRA and Council will consider the Final Development Agreement in December. Sherburne County Strategic Planning Staff has been participating in Sherburne County Economic Development Alliance's (SCEDA) recent strategic planning efforts. Staff met with SCEDA's consultant Janna King in late September to provide one-on-one input. Staff participated in a 3 1/2 hour strategic planning session on November 4th. VII. Business Retention Strategy Minnesota Manufacturing and Technology Week, October 18-22, 2004 Approximately 35 people attended the October 19th Manufacturing Week luncheon, 20 of which toured Solors Optional Axis and Metal Craft Machine &Engineering earlier that morning. President Gongoll presented both companies with recognition plaques signed by the Governor. Additional recognition of Elk River manufacturers was provided in the attached full-page "Thank You" ad printed in the October 13th issue of the Elk River Star News and the Economic Development display booth was rotated among the following places during the month of October: • Week of Oct. 4th The Bank of Elk River • Week of Oct. 11th First National Bank of Elk River • Tuesday, Oct. 19th Lions Park Center for luncheon • Week of Oct. 25th American National Bank Business Retention and Expansion Visits . Staff will contact EDA commissioners individually to schedule future BRE visits. 'ci O Q+8 c' ,4 �6-+) v) ©y FAL 3•a bOA cy '� w "� .b p '"�' O v S cd � � v 8 0 0 .� O N �. bA _+� N s; a °_ 'T7 �' pOp V_ O - v, >~ O O 'C. •• E .1. g '� O O - Uel, + r�+ p — '$ O <" pA U ' ) ti '.,,a a � • '#', cd p„ L ,, V 4?y ( .gip C� bA• , y y ..4 y1.-§-4„-----, am, `i i .s�' ",,..•&, ; U v 'Tl C�i Vf •a' �J j am" w . ' O O • $ ,'. •'�' Lia) : S, ar , .c i' �' N b. c,_ O CO .i, - -.,,, t 5 n" 8 t ..d . 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' " " . • 3 , `._ r • t �y .4111111mmtpit.,,,,,t: ' •i., ' ,, ::',1 •411 Thank y The Ciby'of Elk Everackr oo'Iedyes apprc caates an nui cturink 'A,•,1,,'.i,1•1,.,'',.,,,21';,A,.,A', 'd `^ : and tecinnlo }businessesthat contribute to the Gall ufElk River ,-.,1,,,,!:,,.,;,' with high-skill, higb-xuugejobs,tcts base, business and community El ''':r'',3',: a" elei''elt prnert." .layor Stepb( aie I/ln )xa,--k"i„'';1;.,'."•o,l.' g ,'i,,,,i7ii, 'r''. ,`;t1'.s:.•r,,,f::,,,T,;'—_t'tfr•,',A'...i,',v,,_"',-•7! g ,A t AlltoolPinnacle Design and Manufacturing , ' AME Group Aggregate Industries Blaha Machining .x Contour Mold 7 The Cretex Companies Custom Conveyor Corporation Custom Cutter Grinding '';,':,,‘,,'/'s,ii I` Cymbet Corporation - \ j : Diamond Lake Tool Dimensional Concepts z Display Solutions Dynetic Systems ° ';, E&O Tool and Plastics Elk River Machine Company j ,,',.,,:"...,,, Great River Energy i Gradient Technology IntegriteManufacturing Corporation Lake Assault Custom Bots 4 MN Fabrication G Machine , J&JMachine M£>MPrecision Machining 4 McChesney Cabinet Counter Metal Craft Machine&Engineering Neos NRG - �F � Pomeroy Tool ,,, ProTech Engineering • Riverside Manufacturing SoftPac Industries Solors Optional Axis Sportech Superior Tool Grinding Supermats Tadson t ,F` Tye is. . Timron Precision Gear Vision Mold and Engineering �� The cityvivid of Elk River is celebrating IV Manufacturing and \ Teebualogy Week ou Tuesday,October 19,2004. Tor details, � _,' visit us on the Web at www.ci.elk-rivermn.us and click an t "News&Events." ofE City of Elk River • 77-,e Lg�ht industrial flub of the Norlhwest.Ylezro 11 -03-04 10 : 30 ELK RIVER AREA CHAMBER ID=7634413409 P . 02 )i4L' Ilit...,_ CITY OF ELK RIVER eik �'� NOTICE OF CANCELLATION OF MEETING OF River THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY 1o65 Worm Par .vay >.Ik Rc r,),IN 55330 _.. Monday,November 8,2004 Elk River City Hall 13065 Orono Parkway Elk River MN 55330 • I,Jeff Gongoll, Economic Development Authority President,hereby CANCEL the regular meeting of the Economic Development Authority scheduled on Monday, November 8,2004 at 5:30 p.m. Elk River City Hall, 13065 Orono Parkway, Elk River, Minnesota. The meeting is cancelled due to a lack of issues on the agenda. In accordance with State Stature,I hereby request the city Berk to post this notice att least three clays prior to the scheduled meeting date. I further request the city derk to notify each member of the Economic Development Authority of the special meeting,in writing, at lc.1;t one day before the meeting. • / // fof te 4)(— Date Eco •.a opsnent A ii.ority President I HEREBY CERTIFY that this notice has been posted and that I have served this notice upon the members of the Economic Development Authority by mail at least one day prior to the above-cancelled Economic Development Authority Special meeting. /—J.a ,,� ' //:- 3.tan n City Clerk �......_ Date :.. - 1 ra Phone:763.635.1000 r�,.763.655.1096 05;\EDMMEETJNGS\Mce ins Cancellation No ire.doc r,1:^.7.c:elle-17cr.rails 1i-03-04 09 :35 RECEIVED FROM:7634417425 P. en 11-03-04 10 : 30 ELK RIVER AREA CHAMBER ID=7634413409 P . 03 • 4/0 CITY OF ELK RIVER OFilk ~�. '�" NOTICE OF SPECIAL MEETING OF River THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY 1?0i)b>rhonu Parko.av Elk River,MN 55330 Monday,November 8,2004 Elk River City Hall 13065 Orono Parkway Elk River MN 55330 I,Jeff Gongoll, Economic Development Authority President,hereby request a special meeting of the Economic Development Authority on Monday,November 8,2004 at 6:30 p.m, Elk River City Hall, 13065 Orono Parkway,Elk River,Mi nesora. The purpose of the meeting is to meet jointly with the Fik River City Council. Ln accordance with State Statute,I hereby request the city Berk to post this notice at least three days prior to the scheduled meeting date. I further request the city clerk w notify each member of the Economic Development Authority of the special meeting,in writing,at l east • one day before the meeting_ • P-10 t((5/(94— 4• P:Mittli Date , !' pnient Authonty President I HEREBY CERTIFY that this notice has been posted and that I have served this notice upon the members of the Economic Development Authority by mail at least one day prior to the above-scheduled Economic Development Authority Special meeting. J i �,� 71- y Jo dt City Clerk Date Phone;763.635.1000 F .763.615.1090 • S:\EDA\MEET NGS\Special hdecl tat Netieedoe rr.i ci,e[lc•rivermn.us 11-03-04 09:35 RECEIVED FROM:763441,7425 P• 02 t1TFAFff MEETING OF THE ELK RIVER • ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY OCTOBER 11, 2004 Members Present: President Gongoll, Commissioners Koenig,Dwyer,Klinzing,Kuester and Motin. Commissioner Tveite arrived at 5:40 p.m. Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich,Assistant Director of Economic Development Heidi Steinmetz,Peter Beck,City Attorney;and Recording Secretary Debbie Huebner 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 5:30 p.m. by President Gongoll. 2. Consider Agenda MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE OCTOBER 11,2004 EDA AGENDA. MOTION CARRIED 6-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. SEPTEMBER 13,2004 REGULAR MEETING MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 6-0. 4. Open Mike No one appeared for open mike. 5. Strategic Industrial Marketing Activities Report Assistant Director of Economic Development Heidi Steinmetz reviewed the Strategic Industrial Marketing Activities Report,noting the following: • Staff is awaiting a response from Elk River Business Park and Elk Path Business Center owners regarding the revised Contract for Initial Sale and Development. S ,.,‘ (BRA u Economic Development Authority Minutes October 11,2004 • A summary report comparing Elk River with key competitor communities will be • provided at the November EDA meeting. • An ad featuring Display Solutions appeared in the September 24th issue of The Business Journal. • A direct mail piece was distributed to manufacturers in the tri-county area to promote the Micro Loan Program and Technical Assistance Program. The City's website was updated to coordinate with the direct mail effort. • A recognition event for Minnesota Manufacturing and Technology Week is scheduled for October 19th. Commissioner Dwyer asked if the EDA's Micro Loan application was available on the Website. Ms. Steinmetz stated no,and explained that staff feels that direct contact with a potential client is preferred. Also, she noted other communities may duplicate the City's programs,if the application was available online. Ms. Steinmetz also noted that a full page"thank you"ad will be printed in the Elk River Star News during Minnesota Manufacturing and Technology Week. 6. Consider Adoption of 2004-2007 Economic Development Strategic Plan Ms. Mehelich reviewed highlights of the following issues identified in the work sessions to update the Economic Development Strategic Plan: 1) Industrial Development;2) Central Business District;3) Transportation;and 4) Commercial Development. (Commissioner Tveite arrived at this time—5:40 p.m.) 11/ In regards to the Industrial Development Strategies, Commissioner Klinzing felt that the references to TIF,Tax Rebate Financing,and Micro Loans, should be taken out, since these tools are already being used. She felt that they should be looking for other incentives to encourage development. Commissioner Gongoll concurred. Commissioner Motin suggested that another"bullet"be added and the words "Promote/enhance TIF,Tax Rebate Financing and Micro Loans". Commissioner Klinzing questioned the statement under the Transportation section,"Object to any Highway 10 bypass of Elk River." Commissioner Motin stated that their intent was that a bypass would be detrimental to the downtown and existing Highway 10 businesses. Discussion followed regarding possible impacts of road proposals currently under consideration by MnDOT. Commissioner Motin noted that the City has already approved an east-west corridor to the north,as part of the Transportation Plan. MOTION BY COMMISSIONER TVEITE, SECONDED BY COMMISSIONER KOENIG TO APPROVE THE 2004-2007 ECONOMIC DEVELOPMENT STRATEGIC PLAN,WITH THE CHANGES AS NOTED IN THE DISCUSSION. MOTION CARRIED 7-0. 7. City Council Goal Setting Work Session with Boards and Commissions Director of Economic Development Mehelich noted that the EDA is asked to provide input at the joint Boards and Commissions meeting on their goals and projects as identified in the Strategic Plan. 111 Economic Development Authority Minutes October 11,2004 8. Consider Recommendation to City Council on Land Use Amendment and Zone Change- • Elk River Business Park Ms. Mehelich reviewed the request by the owners of Elk River Business Park,Fischer Sand &Aggregate/Associated Investors of Elk River for a Land Use Amendment,Rezoning and Preliminary Plat.Approval of the requests would allow the applicants a Tractor Supply and Maxsun Furniture store to be constructed. Ms. Mehelich reviewed staff's findings for their recommendation of denial of the requests. Rick Martens,Brookstone,discussed his reasons why he felt the request should be approved,including: the quality of the buildings/users;the higher value of this site;the Business Park District does allow some showroom/retail space;economic conditions have created a weak market for potential light industrial users;and, a number of quality jobs would be created. Troy Tufto,representing Jimmy Yang of Maxsun Furniture,provided information regarding Mr.Yang's business experience,and the type of store and number of employees they are proposing for the Elk River site. Gary Santwire, EDA Marketing Committee member, stated that this property is included in the Development Agreement for Elk River Crossing and an amendment to the Development would be required to remove it. He noted the request does not comply with Comprehensive Plan adopted only 45 days ago. Mr. Santwire noted that if Rich Deziel's property located next to the courthouse were rezoned to Highway Business,it also would be developed immediately. He felt it would be logical for this property to be rezoned(if the entire park is rezoned),since it is located next to a commercial area. • Commissioner Dwyer stated that when this TIF District was set up,a condition of approval was that the industrial park be developed. He felt that since the industrial park was built as part of the TIF, the zoning should remain Business Park. Commissioner Tveite concurred with Commissioner Dwyer. He noted that it has been the goal of the City to create a mix of uses in their tax base. Commissioner Kuester stated that she was not satisfied with the land use of this site during the Comprehensive Plan review and felt there were mixed opinions whether it should be commercial or industrial. She recalled that there was support for commercial use of the site. Commissioner Morn concurred with Commissioners Dwyer and Tveite. He felt that the jobs proposed for the Maxsun Furniture store were acceptable,but that this use would generate more traffic than a business park use. He felt that the Maxsun business would be a better use for the commercial site than Tractor Supply would be,and encouraged Maxsun to build on the Elk River Crossing site,instead of the business park site. Commissioner Klinzing stated that she felt this was a borderline issue that could be argued either way. She did not feel the issue was discussed much during the Comprehensive Plan review because of the Development Agreement already in place for the property. Commissioner Dwyer stated that he recalled Rusty Fifield, Coordinator for review of the Comprehensive Plan,recommended commercial use for this property,because of its . location. Commissioner Dwyer felt that the property falls in a gray area. Economic Development Authority Minutes fit i; J 1-►4 October 11,2004 Commisisoner Koenig stated that he liked the proposal and supporting job information,but he also had a concern that the request conflicted with the newly adopted Comprehensive • Plan and Economic Development Strategic Plan. Commissioner Gongoll stated that he also supported the job creation and felt there would be no question Mr.Yang would construct a quality building. But,he stated he was not in favor of the land use amendment and zone change, and supported the Business Park use for this site. MOTION BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER TVEITE TO RECOMMEND DENIAL OF THE REQUEST FOR A LAND USE AMENDMENT TO HB (HIGHWAY BUSINESS)AND ZONE CHANGE TO PUD (PLANNED UNIT DEVELOPMENT) FOR LOT 1 BLOCK 1, ELK RIVER BUSINESS PARK. MOTION CARRIED 6-1. Commissioner Kuester opposed. 9. Other Business Commissioner Klinzing noted that a Super Target store is being proposed in Otsego and was concerned about the future fate of the Elk Park Center Target store. She stated that it was important that the City convey their desire to see the store remain in this location. Commissioner Dwyer stated that it was his understanding that the Super Target would not be built until after the County Road 36 overpass was completed. The bids for the overpass would not be let until spring of 2006,and construction would likely not be until 2007. 10. Adjournment • There being no other business,Chair Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 6:35 p.m. Submitted by, am.; %/112-1A- — Debbie Huebner Recording Secretary • City of Elk -�-1 River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development��j� DATE: November 8, 2004 CC SUBJECT: EDA Meeting Cancellation for November 8, 2004 Due to a lack of pressing agenda items, the November 8th regular EDA meeting has been cancelled by order of the EDA President,Jeff Gongoll. HOWEVER, a Special Meeting of the EDA has been called for November 8 at 6:30pm for the purpose of a joint work session with the City Council. The work session agenda and materials are enclosed. • Information This information memo includes the following items for your review: * September 8, 2003 Regular Meeting Minutes * Strategic Industrial Marketing Activities Update Memo Mark Your Calendars November 16th 11:30—1:30 pm Governor Pawlenty at Chamber Luncheon City Council and EDA members are strongly encouraged to attend this event being held at the Blackwoods Restaurant. December 13th 5:30pm Next EDA Regular Meeting Have a Great Weekend! •