5.0. EDSR 12-13-2004 PC ft-4f 5
•
City of
Elk -�-�
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development 5
DATE: December 13, 2004
SUBJECT: Strategic Industrial Marketing Activities Report
Attachments
• Progress Partner Dispatch (Economic Development Newsletter) December 2004
• SCEDA Strategic Planning Power Point Presentation,November 4, 2004
• 2004 Business Retention&Expansion Program Schedule
• I. Product Offering Strategy
Timetable for Economic Development Strategic Plan
There is a separate memo regarding this issue.
11. Competitive Strategy
There is a separate memo regarding the recent National Association of Industrial and Office
Properties (NAIOP) Survey Summary.
III. Key Account/Lead Generation Strategy
Staff visited with three prospects last month including a plastic fabrication company, cabinet
making company, and tool and die/metal stamping company about their plans for expansion
and relocation.
Staff attended the December 9th Manufacturers Affiance "Finding&Retaining Qualified
Workers Today" educational event in order to understand the issue from a manufacturing
perspective. Staff networked with a representative from the MN Precision Manufacturing
Association (MPMA) after the event. Both the Manufacturers Affiance and MPMA are
considered key accounts.
IV. Promotions & Advertising Strategy
A full-page,inside front cover ad featuring Orluck Industries will appear in the 4th edition
Minnesota Leasing Guide,which is anticipated for distribution later this month. In addition,
• the City's Orluck Industries case study article will appear in the same edition.
Strategic Industrial Marketing Activities Report
December 13,2004 EDA Meeting
Page 2of3
V. Public Relations Strategy
Economic Development Newsletter
The attached sixth edition of the Economic Development Newsletter, the Progress Partner
Dispatch,was distributed in late November to approximately 500 people representing the
following groups:
• Elk River manufacturers
• High-tech companies located in Anoka, Sherburne,and Wright Counties
• Anoka, Sherburne, and Wright County manufacturers with 20 or more employees
• Past&present prospects/inquiries
• Key accounts (site selectors, etc.)
The purpose is to inform businesses of information useful to their operations and present an
"open for business"image. The newsletter is distributed in the Economic Development
marketing packets and is also available for download on the City's Website.
Holiday Card
As in previous years, staff will send holiday greeting cards to key accounts and industrial
prospects.
VI. Strategic Partnership Strategy
• Downtown Revitalization Project
The HRA and City Council considered and approved a Final Development Agreement with
MetroPlains Development on December 6, 2004. The Agreement indicates the phasing and
timing of the project and the financial commitment of the developer, as well as any
assistance provided by the City. The anticipated construction schedule is as follows:
• MetroPlains' acquisition of properties by Spring 2005;
• King Avenue parking lot construction in Spring 2005;
• Demolition and environmental remediation in the Bluff Block in 2005;
• New construction in the Jackson Block Summer 2005; and,
• New construction in the Bluff Block after the US Bank building is vacated and
demolished in Fall 2005.
Sherburne County Strategic Planning
Attached is the Power Point presentation from the Sherburne County Economic
Development Alliance's (SCEDA) November 4, 2004 Strategic Planning Session,which staff
attended. Page 9 includes a history of industrial land absorption in Sherburne County and
pages 15 & 16 include external perceptions about Sherburne County from industrial brokers
and site selectors.
In addition, session attendees rated the following Sherburne County Economic
Development activities as most important for the future:
•
Strategic Industrial Marketing Activities Report
December 13,2004 EDA Meeting
Page 3 of 3
• Handles Tax Abatement function efficiently/effectively
• Advocate for critical infrastructure important to existing companies &
competitiveness (bridges,improved connections to Twin Cities, St. Cloud airport)
• Maintains basic website with referral to communities
• Facilitates county wide events such as Money Breakfasts
• Conducts business retention visits in areas of the county without active business
retention program
Staff plans to attend the second strategic planning session,which SCEDA plans to schedule
for sometime in January 2005.
VII. Business Retention Strategy
2004 Business Retention and Expansion (BRE) Visit Summary
The attached 2004 BRE schedule indicates details of the below summary:
• The 2004 BRE visit schedule included 19 Elk River manufacturers
• 7 meetings conducted
• 5 BRE visits conducted
• 5 companies did not respond
• 1 company was not interested in participating
• The remaining 1 visit is scheduled for mid-December
• General comments received during the five BRE visits are listed below:
• Traffic flow/congestion is a concern
• The City should be flexible on zoning/planning issues
• Finding reliable, unskilled workers is an issue
• Reasonable taxes and Elk River's competitiveness with other communities is very
important
• Global competitiveness in the manufacturingsector is a concern
p
Staff is working on the 2005 BRE schedule,which will include Elk River manufacturers who
were not contacted in 2004.
MN Fabrication&Machine Micro Loan
The balloon payment on MN Fabrication &Machine's December 2001, $50,000 Micro Loan
is due on December 31, 2004. The company is eligible for a two-year extension at a market
rate of interest and has recently submitted the necessary documents and processing fee for
the extension request.
Due to the timing of the request, staff anticipates that the Finance Committee will review the
request in early January 2005, followed by EDA consideration at its January 10, 2005 Regular
meeting.
•
—
* PROGRESS PARTNER
City of
=il"4:V,:'.,t: ispatchElk.
River
December 2004 The Light Industrial Hub of the Northwest Metro
Award-winning high technology firm chooses Elk River
FINANCIAL INCENTIVES, LOCATION WERE KEYS FOR GRADIENT TECHNOLOGY RELOCATION
n award-winning highA
City helped with financing Gradient paid up front for a two acre,
technology firm has a new City staff had been in touch with $145,556 lot in the Elk River Business
ome in Elk River. Gradient officials for about a year and Park,but is being reimbursed through
With the help of the city,Gradient half by the time the firm was ready to tax abatement from the City.The firm
Technology Inc.,plans to continue its go ahead with the project in January, also received a $100,000 Industrial
innovative ways in a new,13,000 according to Catherine Mehelich, Incentive Micro Loan.
square foot headquarters and research Director of Economic Development At the time this article was written in
and development facility. for the City of Elk River. At the time, mid-November,Gradient officials said
"The city personnel were extremely Gradient was located in leased space they were on track to move into the
helpful,"says Eric B.Haehn,Gradient's in Blaine. facility before the end of November
vice president and chief financial offi- The Elk River Economic Development as planned.
cer. "(The Elk River Economic Department provided a range of Gradient likes location
Development Department)held our services,from a list of contacts at local Although Gradient officials considered
0 hand,basically,and took us through banks to a proposed package of other cities,they especially like Elk
the process." financial incentives. The financing River's location,Mr.Haehn says.
Gradient is a winner of the U.S.Small package was approved by the Elk
Business Administration Tibbetts River City Council in June and ground
Gradient employs several chemical
Award,the SBA's highest national was broken for the new light industrial
engineers who are associated with the
recognition for innovative technology. facility July 7. University of Minnesota,he explains,
so they benefit Elk River's relatively
close proximity to the U of M and its
, '` academic resources.In addition,
.2- 14: since much of Gradient's work is
'''''''';—::n .< performed out of state,they also
t P - Nappreciate the city's easy access to
µti Minneapolis-St.Paul International
K
' Y s '' -�a�''' 4,..**r, \ Airport and other major transportation
.v I."
.� �.: i., routes.
w�
' ., , - On a more personal note,Elk River's
northwest metro location also gives
''p *� ' i Gradient employees a head start for
y$ 4
• # weekend trips to the lake region ofe
" t "' +;. Minnesota where many of them have
.f ', . ,z .0 ' t vacation homes.
- "" kThe need for regular rest and
�.. , :t relaxation is understandable.
, Gradient's primary business is
0 Elk River assists firm with financing "demilitarizing"obsolete munitions for
The Elk River Economic Development Authority recently provided a$50,000 Micro Loan the U.S.Department of Defense.
to Display Solutions.Company officials say the financing was instrumental in getting Mr.Haehn is quick to emphasize that
their start-up business off the ground.Pictured from left to right are:Tom Buchta,Jim the Elk River facility will be used strictly
Studee and Mob Michalek of Display Solutions and Cathy Mehelich and Heidi
Steinmetz of the Elk River Economic Development Department. for a corporate headquarters,R&D and
continued on page 2
City
Elk -.- .
River
lit65 Orono Pkwy
River,MN 55330
continued from page 1 expand eligibility for that program to "We did make some concessions that
equipment fabrication.The actual businesses citywide rather than only benefited Gradient Technology but
"demilling"takes place at the Naval the West Business Park.That made which will benefit other companies
Surface Warfare Center in Crane,Ind., Gradient eligible for a larger, coming in,"Ms.Mehelich says.■
and other operational military bases. $100,000 Micro Loan - enough to
close the gap. For information on site and
High-paying jobs financing opportunities for
Although Gradient is clearly benefiting Although the amendments were your company,please call
from its association with Elk River,the prompted by Gradient's specific
(-,r ) 6351040, or visit us on the
needs,the changes to the program Web at www.cielk-river.mn.us
award-winning high tech firm's move mean that other businesses will also
is also a boom for the community,Ms. and click on"Grow Your Business."
be eligible for larger Micro Loans in
Mehelich says. the future.
At the time the project was approved,
Gradient had 13 full-time employees,
several of whom are highly paid Elk River is No. I in employment growth
chemical engineers.The firm has
pledged to create five more full-time herburne County led all 13 Central Minnesota counties in job creation
jobs in Elk River within the next two from Q1 2001 through Q1 2004,and Elk River had the fastest job
years with wages ranging from $15 growth in Sherburne County.
to $75 per hour,according to its
agreement with the city. ELK RIVER POPULATION GROWTH (2000-2003): 2,100+
"We were particularly pleased with
their growth rate,"Ms.Mehelich says. ELK RIVER JOB GROWTH
Others will benefit (QI 2001-QI 2004):
SEGMENT. NEW JOBS
Initially,due to its planned location
Construction 111
and the nature of its business, —
Gradient was only eligible for a Finance and Insurance 87
$50,000 Supplemental Micro Loan. l.Ianagement 8?
Yet,even with the owner's Public'Administration -0
contribution and the tax abatement, Healthcare and Social Assistance 64
. that wasn't enough to cover the Professional and Technical Services 59
project costs. Building Material and Garden Supply Stores 28
Consequently,the Elk River City Educational Services 20
Council amended its Industrial
Sources:DEED, Quarterly Census of Employment and Wages, U.S. Census Bureau,
Incentive Micro Loan Program to Population Estimates Program
•
Sherburne County
Economic Development
Strategic Planning
November 4,2004
Benefits of Strategic Planning
• Focuses energy and resources of staff and
volunteers
•Allows community to be proactive rather than
simply reactive
• Identifies practical steps to achieve long term
• goals
• Identifies clear goals,tasks,timelines and
accountable parties
• Strengthens accountability-able to measure
accomplishments
Process
•November 4 session
Situation Analysis
Goals for County Economic Development
Program
•November/December
Implications of Nov 4 session;measuring
performance
•January session
Implementation and action steps
III
Econmic Development Services -November 2004 1
•
Today
• Environmental Scan
•Competitiveness Assessment
•Organizational Assessment
•Small group discussion
Typical communityissues
YP
and organizational issues
Community Organizational
• Workforce •Structure
• Location • Leadership
• • Industrial land/Bldgs • Communication
• Transportation • Budget
• Financing/incentives • Evaluation/measures
• Infrastr./telecom
Economic Development
•Focuses on sectors that export a product
or service, "importing"new wealth
• Focused on retention/expansion and
attraction of businesses,and the
formation of new businesses
•Creates a healthier economy and tax
' base, which supports basic services,
quality schools&amenities
• Reduces crime, poverty and dependence
on public resources
0
Econmic Development Services -November 2004 2
•
Economic Development....
Why Do Communities Care?
•Tax base development
•Local employment opportunities
•Create a community where residents
can work, live and play
Property Taxes
Sherburne Co Tax Base(Millions)
Agriculture 6 ❑2004
Commercial/Industrial8.5 A 1993
Utility
14
Residential 43
$0 $10 $20 $30 $40 $50
What is more typical?
•Sherbume County has enjoyed an
unusual tax base due to UTILITIES
•A GOAL for a more typical community is
-30%Commercial/in dustrial
-70%Residential
•Sherbume is now almost 46%Cl+Utilities
•Some communities chose to INVEST a
portion of"unusual"or time-limited tax
base in future c/i tax base development
1111
Econmic Development Services-November 2004 3
Tax Contribution: $250,000 House
vs. $250,000 Business
Commercial Residential
Industrial Homestead
County $1,898 $1,117
City $1,860 $1,094
School $1,395 $820
Total $5,154 $2,884
•
Gerald Kritzedc,Sherbume Co Assessor.Elk River Tax Rates
$250,000 house vs.
$250,000 business
•The business contributes more$and
consumes less in services
•Generally,tax base per acre is much
higher on C/I property than
residential
i
Tax Base Density & Yield
3 acres of residential with 6 homes/acre
valued at$150,000 each=$47,304 tax
3 acres of residential with 3 homes/acre
valued 2$150,000 each =$23,652 tax
3 acres of industrial at 33%coverage with 1
building valued at$37 psf=$77,274 tax
3 acres of industrial at 25%coverage with 1
building valued at$37 psf=$57,495 tax
Central MN Community:2003
Econmic Development Services-November 2004 4
0
Employment Opportunities
• Diversify the economy by targeting
specific sectors
• Use economic development incentives
& marketing to target higher wage jobs
with good benefits
•Provide employment opportunities for
area residents
Economic Development....
Why Do Communities Care'?
•Tax base development
•Local employment opportunities
•Create a community where residents
il
can work, live and play
-Less commute time,better parents,better
volunteers,better citizens,better sense of
"community
Environmental Scan and
Competitiveness Assessment
Sherburne County in Context
•Information on critical national and
regional trends
•Quantitative indicators-internal and
external
•Qualitative indicators-interviews or
surveys
•
Econmic Development Services -November 2004 5
•
Environmental Scan
•
What's Going on in the World?
• Increased worldwide competition,especially
manufacturing,business services
• Innovation is constant&fast-paced
• Information,skills are critical
Implications
-Niches less subject to global competition
-Brainpower increasingly important
-Adapt to increased pace of change
What's Going on in the World?
• MN manufacturers lost 46,400 manufacturing
jobs between 2000 and 2003 essentially
wiping out the manufacturing job gain of
52,600 between 1991 and 2000.(DEED)
• Gain of 6,500 manufacturing jobs since
bottoming out in July 2003
• Sept 04 manufacturing employment
349,500 statewide
•
Econmic Development Services-November 2004 6
0
MN Manufacturing Employment
410.0
400.0
790.0
700.0 —_
370.0
360.0
360.0
740.0—
- .._
770.0 AN DEED:CES0ke 1991-
320.0 c„ya
7100
4 3 4 4 4 4 4 4 $ 4 4 a k
AA A 5 5 5 1 5 5 A B 5
Manufacturing&Employment Trends
1997-2004
Total
25,000 20.0% Employment-
18.0% Sherburne Co
20,000 4 1 I 1168..0016%
6.0% r Manufacturing
15,000 12.0% Emp-Sherburne
1 1 1
010 000 11 1 1 111240.00%:
0% ". Sherburne
l 3 4 4 ;!:i !
'04.0%2.0% ti i It, l 0.09 6 Minnesota
4, MN DEED:QCEW Data Tool
ll.
Industrial Real Estate
• Twin Cities industrial construction reached its
lowest point in 10 years in July
2003.Typically 2 million square feet of new
industrial per year in the Twin Cities—peak
of 4-5 million 1996-1998. First half of 2003—
less than 250,000 s.f.
• Pick-up began in 2004
• Brokers report....commercial is slow;
industrial non-existent multi-family is strong
• With so much job loss,there is an inventory
or available buildings that will sell or lease
first
•
Econmic Development Services -November 2004 7
•
Regional Trends
• Increased congestion in the metro
•MN manufacturing stronger than many
other parts of the country—due in part
to medical devices
Population & Growth Rate
®Population(2002). -}Pop Growth Rate(2001-12)
303,000 _..—___ _..—_.___.____________.-__—.—____ _____0
300.000- _36%
00%
110000-
r -611
�•�0 I 1 1 1 1 "
4.CP 4 4°
Source:Clantas
State Demographer--
Sherburne
Sherburne County
2000-2010
•34%growth from 64,417 to 86,350
2000-2030
•89%growth from 64,417 to121,920
Second fastest growth rate in State of MN
First residential...commercial comes..:
must work at industrial
1110
Econmic Development Services-November 2004 8
•. Aoaa0e Wally Wage(2001)
Mam,YdMlqE d. "*--.Srr4 bn -a' uc�-$740
bbmrlbn xs•FeS,Yet..pn+,i,w,rs. mz.+m-;d$721
PuMcA,bia4trelip, :,1�. - .w •-xs'r.'wy�1471z
Construction t`oker e,stro esm,ssatvvesur.x.-r$7a
Natural Resountes
Prof Business SerYfeu xy r.Faw.: •r✓:r.;:ay4407'
M Industries }'Kih a,oster:d c'0W.:`w.T.1 Mtn
Edits&Heade Services MU=
7renapMM<Iwus0q '.: .r .+k4r,4:a+,v14e27
rave ::-ti- orms:.awn
Omer Senses kkCNu5.:1 vM*n�tr]!1440
Leisure AH0q,Aa7 r fi°z':.i817
Se 4240 MMM 4409 $000 41.000 11300 41.1e0
WOES)DORY cad Tml
Medan Houaehde Income
emcee
1.4O- At`i
a fig.
A 4
-
Salem ..: r
m. E�
...Co ...on 001140* 11.•,. !macs ,un000 Mimeo,eY.
mCa, :D.*.
Co Co Co WI Co Ira Do..a
HISTORIC Industrial
Land Absorption
Absorbed Rate Avail— Avail—
Acres/yr w/utils future utils
Becker 98 5.4 62 160
Big Lake 61 10.2 80 25-30
Elk River 7 .875 70 98
Princeton 11
Total 166 9.2 212 299
•
Econmic Development Services -November 2004 9
•
Market Considerations
• Hot market in the 1990's
• Slump began 2001;many manufacturing
niches moving overseas
•Available building inventory in Twin Cities
needs to be absorbed first
• Land closer to Twin Cities typically fills up first
• Sherburne Co in the path of development
• Geography&access seen as barriers,but
improvements on Hwy 10 seen as positive
• Northstar corridor perceived as accelerating
development
Neighboring Communities
•Anoka—300 acres opened in 1988.
Focused approach 1994-98. Sold 284
acres—averaging 57 acres per year
•Ramsey—148.5 acres sold 1994-1999,
• averaging 24.75 acres per year
•Combined sales averaged 82 acres per
year from '94-'98.
Neighboring Communities
• Rogers—24 acres listed on MnPRO
• Otsego—minimal industrial,commercial
pressure
• St. Michael—20+acres
• Albertville—56 acres under$$pressure from
retail. City reserving 7 acres for sure.
• Monticello—190 acres will soon add 120
acres("investing power plant premium
• Ramsey—38 acres,several buildings
•Anoka—minimal land;5 substantial buildings
r
Econmic Development Services November 2004 10
• Reserving Industrial Land in Area
with Rapid Residential Growth
•First form of control is zoning
•Next step-option land
•Public acquisition/development(rural)
•Encourage private development(metro)
•Sherbume County at the"edge"of
private vs. public development
Industrial Land
Planning & Development
• Recommend 30 year inventory of land zoned
appropriately for future development of
business&industrial parks
• Best tax base density is achieved through
quality business park development(hand-out)
• • Recommend 8-10 year inventory of serviced
land to maintain diversity of sizes/locations
• Challenge of market cycles—holding costs
• Challenge of rapidly escalating prices due to
residential demand for new housing
•
Sherburne County Inventory
• Vacant land ZONED industrial not in cities
— 797 acres
• Vacant land in Comp Plan for Business&
Industry not in cities currently
— 2,488 acres
• Unsure about future utility services to these
parcels;quality of development
• Makes sense to take a more in-depth look at
planning for future business&industrial parks
(tax base)
•
Econmic Development Services-November 2004 11
•
Questions or Discussion
Re: Environmental Scan
Competitiveness Assessment
• How Does Sherbume County Look to
Existing Employers??
Site Locators??
Employer o
p oyer
•Positive attitude toward county&
communities
•"Bottle-neck"at river is a concern, now
&more so in the future. Can slow the
movement of goods by truck.
•Labor force perceived very positively-
good skills, availability, stability
•Mixed attitudes toward commuter rail
•
Econmic Development Services -November 2004 12
•
What do site locators consider?
•Work force-skilled, productive,
available, critical knowledge
•Transportation(time and distance)
• Industrial sites and buildings
• Utilities-energy,telecom, sewer and
water
•Access to capital
•Access to technology
• Natural resources/ag resources
What do site locators consider?
• Customers/suppliers
•Taxes
•Available housing
•Access to higher education/training
• resources
•Quality of life-health care, schools,
amenities
•
Workforce Educational Attainment-Age 25+
Twin COtrs MSA
sr.0 ouco.w ., :arr
I
I Ia
I I
steins co- 1. r �°`
I
wrgm co I I I I r.,.,n,-i
0.4
snerwn,eco ��., � ! f1 r1 I
I_ I
0% 10% 20% 30% 40% 50%. BO% 70% 00% 90% 100%
0 Less than 12 years 0 High school graduate
0 Some college,no degree 0 Associates degree
0 Bachelors degree 0 Grad or professional degree o,:2,2
•
Econmic Development Services -November 2004 13
•
Property Tax Comparison
8130,000 -------------------------
8140,000 - — —
8120,000 - q ; $ —
8100,000. — Mro i F — w S i e S
$00,000 - S + ,e +
E.
$00,000 -
$40,000
820.000-
r/-4 sr* 04. of C,d' "1e Ai �e .1,/ of f
,$3.5 Millon Faciay-league of MN Cites Calculator-2004 4,
Manufacturing Occupations—Median Wage 2001
—rte— -- •Twin Cities
letterpress _•..r..r _,....,,.�...1 ■St.Croon,WI
seiter/set-upO Eau Claire Co,Ng
., _- _ ._..._.._.._...,..1 ❑Dunn Co,WI
C Isanti Co
Fleaey
assembler ll - ._,.. ■Scott CO
• ,_.,- <_,._._.t, ■Steams Co
O Wright Co
Light aChisagoCo
assemblar II ':- .. a Anoka Co
CI Sherburne Co
$- $10,000 $20,000 $30,000 $40,000.
Back Office Occupations Median Wage(2001)
AaouM ■Twin Cities
represemsdve
11151.CrOhy WI
moicammAl ,a O Eau Claire Co,WI
arpemeor olD Wand Co
moiweninewer_ ■Scott Co
Claims esaminer - ="�'i
II Stearns Co
OWright Co
aiteaiwinewe
■Chicago Co.
0 Sherburne Co----
5- 810.000 820,000 830,000 $40,000 850,000
. -
Econmic
Development Services-November 2004 14
•
Manutactwing Occupations-Median Wage(2001)
a AOb alts
-- I
_ I ■St Cada WI
_— DEw CIO,.Ce,
MaeMNge ....-_-. .w.--_.._....__.._...._..--.._.._� _
._. .__._... WP:
DnCo,wt
0 Rend Co
■'ode cs
apareew — ---
1 o Steams Co
stndnnbl — DWCO
Meehan ton Oann,Co
cutting operetta _.._. _._.
S- S10A00 t2e.000 30,000 500,000
TMlnology Related Occupations-Median Wage 2001
■Twin Cities
Wotan osier_ ,.m. :.... _ _:..,_ . ■St Chia,WI
...-. .,__.... .. oEau Clain Co.WI
O Dunn CO WI
- Ibtrork aantrd,a„,�
bahnbbn N O 1fan0 CO
____aaaa>,a�� a Scott Co
III
hbe .� ._...,. .A,.x.,,. - ■Steams CO
Wnl0btrrtm
o Wright Co
ar•_a� •Chiago Co
rc nrainb ® -DMhos Co
bah bed -
O Sherburne Co
a Wt6,w0 1n,000 .116.000 W0,000 $70,0a0
External Perceptions
Broker/Developer/Site Locator
• Twin Cities developers had positive experiences
with all communities
• Residential&commercial are happening;
significant industrial growth still a ways out due
to land closer to metro
• Industrial parks generally well laid out—don't
drop standards
• Northstar Corridor will help;make the most of the
station nodes with good planning
• Multi-use parks are a trend,might fit with rail
stations
0
Econmic Development Services -November 2004 15
a
External Perceptions—
Broker/Developer/Site Locator
•Hwy 10 isn't 94 but Anoka upgrades made
a big difference
•River crossings will make a difference
• Low tax rate in Becker is attractive
•Quicker access to"up north"is attractive
to workers/some business owners
•TIF on land has induced deals in Elk River,
Big Lake
Broker/Developer/Site Locators
Re: Potential Markets
• machining(good labor •satellite expansion
force) from Twin Cities(any
• home building
related(cabinet shops, •distribution
• etc.) •transportation
• plastic injection related
molding •Cargill related
• medical device opportunities
manufacturing •concrete products
• call/data centers with fly ash
External Perceptions --
Broker/Developer/Site
Broker/Developer/Site Locator
•Cost of land for housing is pushing up
prices for industrial—county could work
with cities to plan/set aside land for future
•One developer interested in meeting with
communities to explore opportunities for
private multi-use park
1110
Econmic Development Services-November 2004 16
1110
JOB Zone
•Many greater MN communities
•NOT Designated—7 county metro or
Sherbume, Wright
•Powerful incentive, but questionable
from a policy perspective
JOB Zone
Up to 12 years........
•No property tax
•No corporate income tax
•No tax to owners/investors related to
that business/property
•No sales tax on items used at
designated facility
•Employee tax credit for high wage jobs
Summary — Site Location
Strengths Weaknesses
• Proximity to metro with • Transportation
good labor skills,cost& bottlenecks
turnover rates
• Population growth • Hwy 10 vs.1-94
• Good industrial parks • Current market
• Good rail,utilities conditions
• Good telcom,including rural • No JOBZone
• Reasonable tax rates
• Typical financing&
incentives
• No JOBZone
t
Econmic Development Services -November 2004 17
•
Summary Site Location
Strengths Weaknesses
• Incubator in Elk River Customer service issues
• Costs are"average"-won't • Concern that county
be a strong selling point,or
an issue planning commission
• Communities have a good staff reports dorYt go to
reputation in the developer before
development community meeting-so don't
• Location between Twin know issues-get
Cities&St Cloud-access blind-sided
to both markets,labor pools
• Large tracts of land still • One community not up
available front re:SAC/WAC
• Multi-modal opportunities charges
Discussion
Situation Analysis: Community
Typical community issues
and organizational issues
Community Organizational
•Workforce • Structure
• Location • Leadership
• Industrial land/Bldgs • Relationship to other
• Transportation organizations
• Financing/incentives • Communication
• Infrastr./telecom • Budget
• Evaluation/measures
•
Econmic Development Services -November 2004 18
i
Organizational Assessment
• Strong county board commitment&
understanding of economic development
• SCEDA volunteers commited
• Strong groundwork&foundations laid
-Tax abatement process
-Money Breakfasts
-Loan funds
-Brochure
-Business retention
-Participation in The Partnership(buildings&sites
'inventory on-line)
Organizational Assessment—
County Role
• Overt conflicts not apparent or minimal
•Active communities constrain county role-
strong cities make county redundant or
competitive
•Areas of the county without ED staff are
0 generally rural&without utilities
• "Businesses not in cities have someone to call"
• Strong support for county role on tax abatement
• Strong support for county role on Money
Breakfasts
County Role -- Marketing
•Support for county on marketing-cost effective
to promote jointly
• "Cities feel in competition with county on
marketing"
•Communities did not report valuable leads from
county
• Concern about effectiveness of marketing to date
•Targeted audience? Lack of advertising?
• Marketing is expensive—need significant
commitment to have impact
-Year 1 budget $70,000
-Sustaining budget-$45,000+
1111
Econmic Development Services-November 2004 19
County Role —
Business Retention
•Mixed response on business retention
activity—if cities do it, is it a good use of
resources for the county to do it?
•Princeton doesn't do it; Big Lake's
program is not formalized. Becker did
visits with county and/or Partnership.
Should county limit role to businesses
"with potential"not in the city? Should
county cover Princeton?
SCEDA Board
• Informed&involved citizens&businesses
perceived as important
P
• Some concerns about role&expectations of
the board
• Info shared with board;"done deals"brought
to board.
411) • Board didn't push or pursue an agenda or
accomplish tasks;not much happened
between meetings
• Board"informed but not engaged"
• New board members didn't get an orientation
• Board did not function well without staff
SCEDA Board
• Desire for clear goals
• Desire for more engagement with the
business community-have celebrations with
businesses we helped
• More contact between SCEDA board and
Commissioners
• Didn't participate in economic development
budget decisions
• Lacked measurable goals for ED program
i
Econmic Development Services -November 2004 20
The Partnership
• Concern about value received
•Western part of county connects to St.Cloud
•Airport important to entire county
• Leadership change t Partnership
• Becker reported good leads from The
Partnership
• Elk River connected to metro not St.Cloud
• Partnership seriously exploring new marketing
initiative
• Tom Moore expressed willingness to figure out
how to provide value
Organizational Assessment
•Wide variation in perceptions of
desirable staffing level
—SCEDA Board—generally full-time staff+
admin assist
Others(commissioners,ED staff) were
very mixed;more aware of too much staff
capacity redundant/competing with cities
Organizational Assessment
•Define role for county which is supportive
of communities
-Researching target industries
-Focusing on industry clusters
—Build on themes like energy resources,
multi-modal opportunities
Lead new initiatives that make use of
unique position of the county&don't
duplicate cities
—Addressing venture capital,
entrepreneurship @ county level
Econmic Development Services -November 2004 21
•
Small Group Discussions
• Role of County ED Program
• Issues&Opportunities—* Goals
}
Econmic Development Services -November 2004 22
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