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5.0. EDSR 07-14-2003 ITEM 1 5. City of Elk -�-1 River MEMORANDUM TO: Economic Development Authority FROM: Heidi Hall, Economic Development Assistant 14' DATE: July 14, 2003 SUBJECT: Strategic Industrial Marketing Activities Update Attachments • "Retail, Industrial Development Planned for Big Lake",The Business Journal, July 7,2003 • Business Retention&Expansion 2003-2004 Schedule Report • I. Product Offering Strategy The Marketing Committee discussed the industrial land issue at their May 66'and June aid meetings and will again discuss the issue on July 22nd. Meantime, staff and Sid Inman of Ehlers &Associates have been meeting with industrial property owners as directed by the Marketing Committee. The Director of Economic Development has provided a separate report regarding this issue. II. Competitive Strategy Please see the attached article regarding Dynamics Design&Land Company's proposed development of a new 170-acre site in Big Lake,which will include 400,000 to 500,000 SF of industrial and retail/office space. I I I. Key Account/Lead Generation Strategy Staff continues to work with key account MN Technology on the partnership project mentioned below under the Public Relations Strategy section. IV. Promotions &Advertising Strategy Inquiries Staff received four new inquiries in June. Information on the type and status of recent inquiries/prospects is as follows: • Strategic Industrial Marketing Activities Update July 14,2003 Page 2 of 3 • Inquiry Type Status UPDATE 12,000 SF light industrial machining Preliminary siting proposal prospect, 5 full-time jobs at$15.00 per hour submitted; and 8 full-time jobs at$12-20 per hour company preferred Elk River but received and accepted competitive offer from Ramsey ($60,000 for 1.5 acres including services) UPDATE 30,000 SF light industrial finish coating Staff Siting Team discussing prospect, 18 full-time jobs at$10-15 per siting options, awaiting a hour competitive site to offer, provided info. on Pinnacle building NO NEW 5,000 SF (lease space) light industrial Site tour conducted, company INFO. injection mold prospect delayed decision NEW 10-12 Acres for lumber yard Provided info. on Cascade Industrial Park NEW Small light manufacturer, 6 jobs Considering Eastey building, provided info. on Micro Loan • Program NEW 10,000 SF cabinet shop considering Provided info. on EDA Eastey10,000 SF cabinet shop considering financing programs Eastey building NEW Fire&water damage restoration service, Considering Eastey building, 10 jobs provided info. on MCCF program V. Public Relations Strategy MN Technology Partnership Program The Initiative Foundation approved the City's grant request in the amount of$5,000 regarding the partnership program between the City of Elk River and MN Technology, Inc. (MTI), tentatively termed the Technology Assistance Program. The program is designed to recruit and retain strong manufacturing companies within the City of Elk River by providing them with technical training services. Staff recently met with MTI to discuss joint marketing and promotion of the program. The program will be announced in a press release later this month, followed by a direct mail announcement. Energy City Staff and a potential ACE Marketing Committee will begin planning an event tentatively scheduled for mid-August to recognize the new high performance Rogers High School. • Additional updates and changes are being made to the Energy City brochures and Web site. Strategic Industrial Marketing Activities Update July 14,2003 Page 3 of 3 41110 VI. Strategic Partnership Strategy Downtown Revitalization Project June Activities • MetroPlains presented concept options to the HRA and City Council • Public Open House June 18th at Lions Park Center • Open House Comment Forms and Summary provided to HRA • HRA directed staff and MetroPlains prepare a list of Development Agreement issues that would be brought back to the HRA for consideration • HRA approved that city staff and MetroPlains submit a Multlifamily and Housing Tax Credit application to the MN Housing Finance Agency • HRA will recommend that the City Council provide support of the MHFA application and favorable consideration to a Letter of Understanding to transfer the city-owned Jackson Block property VII. Business Retention Strategy Business Retention Program A Business Retention and Expansion (BRE)visit with Ed Cunnington of Tescom is scheduled for late July. Staff will contact EDA members individually to schedule additional meetings with companies listed on the attached schedule. Staff will also be attending visits conducted by MN Technology. • Retail, industrial development planned for Big Lake -2003-07-07 - The Business Journal ... Page 1 of 2 The Business Journal(Minneapolis/St.Paul)-July 7,2003 http://twi ncities.b izjo u rna ls.com/twi nc ities/stories/2003/07/07/story7.html • BUM ,PAitt IHEJ5 [NESS ]ö EXCLUSIVE REPORTS Retail, industrial development planned for Big Lake Sam Black Staff reporter An Elk River company wants to construct a$50 million to $80 million retail and industrial development in Big Lake in large part so it can develop a larger adjacent site into single-family homes. Dynamics Design and Land Co., which is primarily a home builder, has proposed the Big Lake Market Place on a 170-acre site about a mile east of downtown Big Lake. The project would include 400,000 to 500,000 square feet of industrial space, some retail space that doesn't include big-box users, restaurants and possibly a hotel. The site is bordered on the north by Highway 10 and on the south by the main line of the Burlington Northern Rail Road. The company also has under contract a 200-acre site on the north side of Highway 10 where it hopes to build a 4, 200-acre residential development, said Jim Thares, Big Lake development director. But Dynamics Design can't get zoning approval to build the residential project because the city requires orderly development and annexation and doesn't allow what is known as "leapfrog" development, Thares said. Dynamics Design officials couldn't be reached for comment. Regardless of the motivations for the commercial project, Big Lake Market Place is good news for residents of Big Lake who want more shopping choices near their homes, Thares said. Big Lake has 8,000 residents, or twice that number if you count the surrounding Big Lake Township, he said. Residents must drive seven miles to Elk River or three miles to Monticello to shop for their most basic needs, Thares said. "Now, people are saying, 'We're just as big as those towns, why can't we have those things?' " he said. Another project on the horizon in Big Lake will help the retail base as well. Minnetonka-based Oppidan Investments has proposed a$16 million development called Big Lake Market Square. Oppidan is working with St. Cloud-based Coburn's Inc.,which plans to take over a 15,000-square-foot family- owned grocery store on a site on Highway 10 near downtown Big Lake. Oppidan would then build a new 43,000-square-foot store across the street from Coburn's and convert the old store into a modern strip shopping center.Two traffic studies, one paid for by Oppidan and another by the city, • are under way and should be complete by mid-July, allowing for construction to begin this fall. sblack@bizjournals.com j (612) 288-2103 http://twincities.bizjournals.com/twincities/stories/2003/07/07/story7.html?t=printable 7/8/2003 o If 4 R° � CJ 0 0 bd If I, rz• a a •. q r+ • o o rn o h oDV h tt a. n n L , O m 0 �' cr n o• n co h co n ora 3 n �' �oyy- CD I o ° C7 a� 0. 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