6.0. EDSR 07-14-2003 ITEM # 6.
•
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: July 14, 2003
SUBJECT: Industrial Land Development Strategy -- Update
Attachment
• Landowner Meeting Form
Background
The City's goal is to be "the light industrial hub for small to medium-size firms in the
• northwest metro region". This mission was adopted by the EDA as part of the Strategic
Industrial Marketing Plan.
Over the past two years staff has experienced two primary barriers to successfully recruiting
small to medium sized light industrial development in Elk River. The two barriers are:
• Availability of 1.5 - 2 acres lots
• Land costs
At its June meeting the EDA directed staff and Sid Inman of Ehlers&Assoc.,to proceed in
meeting with each industrial landowner to discuss the landowner's interest in participating in
a competitive marketing strategy for light industrial development.
Current Status
The landowners of the following development sites have been contacted for a meeting:
• Elk Path Business Center-west business park
• Gagne Property-west business park
• Elk River Business Park- east business park
• Cascade Industrial Park-southeast industrial park
Staff has been using the attached Landowner Meeting Form as a guide for discussion.
The goal of the landowner meetings is gather information that will assist staff in developing
a process for each landowner,that reduces the price competition between landowners within
• the city,while at the same time allowing them to be competitive with land outside of the city.
Industrial Land Development Update
July 14,2003 EDA Meeting
Page 2 of 2
• Each landowner would have the option to participate or not participate. If they choose not
to participate in the beginning,they may change their mind and participate at a later date.As
part of the process, a"BUT FOR" analysis would be preformed to insure compliance.
In addition, staff is gathering information and research on property special assessments and
the estimated costs to prepare the sites for immediate sale and development.
Next Steps
Following the landowner meetings, staff and Mr. Inman are developing a strategy for which
to determine the basis to which the city may participate for industrial development on each
site,including established goals for the type of user,building standards, and level of
assistance needed to make the site competitive within the market.
The strategy will be reviewed and discussed by the Marketing Committee at a July 22n1
scheduled meeting, and presented as a recommendation for review and final action of the
EDA.
•
1111
tif
k
River
13065 Orono Parkway
Elk River,MN 55330
Meeting Attendees:
Date of Meeting:
Meeting Location:
EDA'S OBJECTIVE: To attract small to medium size light industrial users to Elk River.
EDA'S PURPOSE:
1. To increase the city's future property tax base thus reducing future increases in
property taxes on current residents.
2. To create quality job opportunities for current and future residents.
3. To create an increased customers base for retail business.
MEETING GOAL: To provide process for each landowner, that reduces the Price
• Competition between landowners with in the city, while at the same time allowing them
to be competitive with land outside of the city. Each landowner would have the option to
participate or not participate. If they choose not to participate in the beginning, they may
change their mind and participate at a later date. As part of the process, a"BUT FOR"
analysis would be preformed to insure compliance.
ZONING DEFINITIONS:
Light Industrial District:
Allows manufacturing, warehouse, wholesale businesses, offices &research
facilities/labs with a lower set of building standards (i.e.) metal, no architectural
guidelines.
Business Park District:
Allows the same uses with an emphasis on higher quality construction standards;
typically developed as a"campus"with some unifying elements.
• See attached Matrix I: Key Client Requirements by Development Type.
•
Phone: ,Iu1 T4; 9--
Fax:-.63-A417 5
www.ci.elk-river.nin.us
•
To develop this process, the EDA needs to establish base-line information regarding the
available land.
1. What are the sale objectives (timing and use) of the landowners?
2. What is the size of the available land and to what size is the landowner willing to
subdivide?
3. What public improvements (water, sewer, and roads) and available and needed?
• 4. What is the sale price per sq. ft. of the land?
5. Are their any other liens (special assessments) on the land?
6. What are other barriers to development of the land?
7. Other comments:
•
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