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5.0. EDSR 12-08-2003 City of Elk -�-� River MEMORANDUM TO: Economic Development Authority `4�� FROM: Heidi Steinmetz, Assistant Director of Economic Development 't ' DATE: December 8, 2003 SUBJECT: Strategic Industrial Marketing Activities Update Attachments • MN Technology Newsletter, Tech Trends,November 2003 • "MN Technolgy Hires Wayne Pletcher as New President", MN Technology Press Release, November 17,2003 1110 • New Urbanism&Redevelopment Conference Insert • The Economic Development Association of MN Newsletter, The Developer, December/January 2004 • K-Netica letter to Initiative Foundation and new brochure I. Product Offering Strategy Industrial Land Issue Staff is awaiting a meeting schedule with Colliers Towle, the new brokers of the Elk Path Business Park (West Hwy 10). I I. Competitive Strategy There is no new information to report. I I I. Key Account/Lead Generation Strategy Holiday Greetings As in previous years, staff will send holiday greeting cards to key accounts and industrial prospects. MN Technology Please see the attached newsletter and press release from key account, MN Technology. • Strategic Industrial Marketing Activities Update December 8,2003 Page 2 of 2 411) IV. Promotions & Advertising Strategy Advertising Upcoming advertisements include the Nov/Dec Leasing Guide, featuring Cymbet,and two issues of the December MN Real Estate Journal, featuring Tescom. Staff is scheduled to meet with Tammy Miller Design to discuss the 2004 Strategic Industrial Advertising Campaign. V. Public Relations Strategy MN Real Estate Journal (MREJ) Conference Similar to previous years, the EDA sponsored the November 20th MREJ New Urbanism & Redevelopment conference (see attached conference insert with Downtown Revitalization Project ad and article). The Director of Economic Development presented on the Downtown Revitalization Project. Commissioner Motin attended the event as well. MREJ's Economic Development&Site Selection conference is tentatively scheduled for February of 2003. The Economic Development Department will receive exposure at this event at no cost to the EDA. Energy City There is a separate agenda item for discussion of a joint work session with the City Council and the Action Committee for Energy (ACE). iEconomic Development Association of MN (EDAM) Newsletter An article appeared on pages 5 & 6 of the attached EDAM newsletter recognizing several Elk River manufacturers and Elk River's Manufacturing&Technology Week event. VI. Strategic Partnership Strategy Downtown Revitalization Project The HRA extended the Preliminary Redevelopment Agreement with MetroPlains to January 30, 2004 to provide sufficient time to work together toward a Development Agreement. It is anticipated that the Development Agreement will be presented to the HRA in January. VII. Business Retention Strategy Business Retention &Expansion (BRE) Visits A BRE visit is scheduled with Supermats on December 9, 2003. President Gongoll will be attending the visit with staff. In addition, staff is working to schedule one remaining BRE visit yet this year. Cymbet Update In early December, the Director of Economic Development,President Gongoll, and Commissioner Klinzing met with representatives from Cymbet to discuss expansion plans. KnowledGenetica Update The attached letter and brochure provides an update from KnowledGenetica (K-Netica). • TechTrends e-Newsletter I October 2003 Page 1 of 4 I R i i lu ` hitPrint Close III a publication of , rannesota kinky,Inc. , , ,/i .Eir-i 3 i 4 Volume 4, Issue 8 November 2003 } u Q over Story ii The Big Picture A new MTI initiative, 360vu brand services, offer comprehensive business advice and access to a nationwide network of resources to improve your whole business- your strategic positioning, how you compete in the marketplace and, indeed, how N you compete in the world. MTI has long been recognized as a top provider of information and strategic p consulting services for manufacturers and technology businesses throughout Minnesota and Midwest area. Now we've added an exciting new option designed specifically for small and mid-sized manufacturing firms. III , The new offering, 360vu, is an approach that provides a big-picture perspective to business operations and management. Its goal is to help a manufacturing company with all aspects of its business (hence the "360" in the name)-everything from strategic positioning to workplace organization to process improvement, and much more. What's more, the 360vu service is custom-designed to fit the needs of each i; individual company. You work one-on-one with a manufacturing and business expert who will assess your company's unique needs, goals, and vision; help you create an improvement strategy; build a tactical plan that factors in timelines, budgets and other constraints; and help you monitor the project on an ongoing basis. P 2 World-Class Solutions Over the course of its 12-year history, MTI has helped thousands of Minnesota companies with similar services. That said, a couple of factors make the 360vu offering particularly powerful and distinctive. First, 360vu provides a range of world- class business operations approaches and solutions. They include: F • The 5S System, a series of activities designed to improve workplace organization and standardization with the goals of accelerating product and service flow, reducing machine downtime, improving safety, and achieving • 4 work standardization. • Cellular/Flow Manufacturing, a process which aims to link manual and machine manufacturing operations in a seamlessly efficient manner. http://www.minnesotatechnology.org/publications/techtrends/2003/November/printV ersi... 11/10/2003 TechTrends e-Newsletter I October 2003 Page 2 of 4 • Total Productive Maintenance (TPM), a process designed to maximize N equipment productivity and slash maintenance expenditures. 0 '1 • Pull Systems/Kanban, which helps you control the flow of resources in a production process and reduce inventory, slash order turnaround times, and boost cash flow. • Quality Systems. P • Internet Technology. y • Product Development. • Strategic Management. What's more, MTI offers 360vu through our affiliation as a Manufacturing Extension 11': Partnership (MEP) center. MEP is a nationwide network of not-for-profit centers whose sole purpose is to provide small and medium-sized manufacturers with `` business help. The centers, which all 50 U.S. States and Puerto Rico, are linked together through the U.S. Department of Commerce's National Institute of Standards and Technology. The result: Clients have access to an unparalleled network of manufacturing- and business-related expertise and resources. For more information on MTI's 360vu offerings, go to 1 www.minnesotatechnology.orq, or call 612/373-2900, 800-325-3073 li IiTech Notes Technology business news from around Minnesota. Mankato-based phone and Internet service provider Hickory Tech Corp. recently announced that it will sell all of its wireless subsidiary, Minnesota Southern Wireless Co., to Western Wireless Corp. of Bellevue, Wash., for $25 million in cash and stock. III .:. 1 The deal, which is subject to FCC review, is scheduled to close in the fourth quarter of 2003. 0 DMS Imaging, a Fergus Falls-based provider of imaging equipment, supplies, and services, recently named Mark Casner president and chief operating officer. The Minnesota Dislocated Worker Program (DWP) recently gave Blandin/UPM- Kymmene of Grand Rapids an award from for its help in providing help to laid-off employees. The firm offered up to $10,000 to each former employee through its tuition reimbursement program and hired a placement company to help provide transition assistance. DWP is a program of the Minnesota Department of Employment and Economic Development. 0 0 St. Cloud-based Bankers Systems Inc., a St. Cloud-based provider of compliance resource solutions for financial institutions, recently acquired Atchley Systems, a Dallas maker of anti-money-laundering software. 1 The Minnesota Department of Employment and Economic Development (DEED) recently announced that a total of 10 regions from around the state have submitted applications to become Minnesota Job Opportunity Building Zones (JOBZ). The JOBZ program is designed to stimulate economic development activity in distressed areas of Minnesota by providing local and state tax exemptions. The JOBZ designations 0 will take effect on January 1, 2004. One JOBZ applicant, the northwestern Minnesota city of Perham, will not wait to • 0 find out if application will be accepted. The city is considering creating a special Tax Increment Financing district for Willis Rubber, a Wadena-based business that is 0 looking into building a production facility in Perham. t t4 http://www.minnesotatechnology.org/publications/techtrends/2003/November/printVersi... 11/10/2003 TechTrends e-Newsletter I October 2003 Page 3 of 4 Winland Electronics Inc. a Mankato-based designer and manufacturer of custom • electronic control products and systems, recently announced that it had received registration to the new updated ISO 9001: 2000 standard for Quality Management Systems. Bayport-based Andersen Corp. has unveiled plans to build a 150,000-square-foot plant in North Branch. The new plant, which will create 135 jobs, will create vinyl and other types of composite moldings for the company's windows and doors. R Is G. Howard Lund, founder of New York Mills-based Lund Boat Co., died on Oct. 22, 2003. Lund, who retired from the company in 1981, was 91. OCalendar Nov. 5, 2003 Minnesota Technology, Inc., ISO Registration series, Brainerd Topic: Corrective and Preventive Action www.minnesotatechnology.org/events/TechForums/forum.asp?forumId=71 Nov. 6, 2003 Minnesota Technology, Inc., Tech Forum, St. Paul I Topic: Pursuing International Growth Opportunities www.minnesotatechnology.org/events/TechForums/forum.asp?forumId=88 R I March 1, 2004 Minnesota Technology, Inc., ISO Registration series, Edina 40 Topic: Customer Satisfaction Measurement www.minnesotatechnology.org/events/TechForums/forum.asp?forumId=82 March 4, 2004 Minnesota Technology, Inc., ISO Registration series, Brainerd Topic: Customer Satisfaction Measurement www.minnesotatechnology.org/events/TechForums/forum.asp?forumId=83 OPerspective A Fighting Trim gi fi Manufacturers discover you can never be too lean. II0 How is manufacturing like the high-fashion world? No matter which realm you're in, if you want to be rich, you'd better be lean. Competitive pressures, at home and 0 overseas, have prompted more manufacturers to examine their processes and figure out how to be more productive. Lean manufacturing, according to Dave P Ahlquist, a member of MTI's Lean Enterprise Team, is "a systematic approach to identifying waste and non-value activities to improve quality." 1 0 While the Toyota Corp. pioneered lean manufacturing and American automobile 0 manufacturers embraced it in the 1980s, the principles and processes in lean can be applied in small shops and even among custom manufacturers, which are constantly changing the product they produce, says Ahlquist. Lean manufacturing principles • 1 emphasize a highly analytical approach. Typically, businesses implementing lean will look at plant layout, workstation organization, production processes, inventory turns, batch size and potential sites of wasted time or materials. "Fundamentally, companies are getting products to flow better," Ahlquist notes. 1 http://www.minnesotatechnology.org/publications/techtrends/2003/November/printVersi... 11/10/2003 TechTrends e-Newsletter I October 2003 Page 4 of 4 Companies working with MTI typically begin practicing lean manufacturing by offering their employees the Lean 101 workshop, which explains basic principles and • uses a simulation to teach employees how to apply them. Many also do "value- stream mapping," in which the company traces the specific steps in a manufacturing process that actually add value to an end product. As companies advance in lean manufacturing, they may hold periodic "continuous improvement events." These meetings involve a few employees in an in-depth examination of a production issue, which usually results in changes to make the process more efficient. Advice on lean The Internet provides a wide variety of sites on lean manufacturing and its benefits. 0 Here are three worth checking out. • 360vu- This organization provides workshops and information on all aspects of lean manufacturing. Go to www.360vu.org, then click on "manufacturing solutions" and "lean enterprise" for a complete discussion of lean theory and application. • Lean Enterprise Institute- Founded by James Womack, one of the top thinkers on lean practices, the Lean Enterprise Institute provides information and workshops (www.lean.org). Womack's book, Lean Thinking: Banish Waste and ys Create Wealth for Your Corporation, provides an overview of lean manufacturing. • Society of Manufacturing Engineers- This professional organization has an e- newsletter devoted to lean manufacturing as well as several books and tapes on the subject. Check out its web site www.sme.org; click on "lean directions" • icon. For personalized assistance, another option to consider is MTI's Lean Enterprise Team, which has helped dozens of Minnesota companies streamline their processes and improve quality. For more information on MTI's Lean Enterprise Team, go to www.minnesotatechnolo or /business/lean.as , or call 612/373-2900, 800-325- 9Y 9 p 3073. a Nisr I Network MEP Affiliate Home I Contact Us I Site Map I Privacy Policy I Terms of Use © 1994-2003, Minnesota Technology, Inc., All rights reserved webmaster@mntech.org PHONE: 612-373-2900 FAX: 612-373-2901 • http://www.minnesotatechnology.org/publications/techtrends/2003/November/printV ersi... 11/10/2003 41111CD «. " 0 2I rr,1aC Co co �, t o cA 2 _ rt o N <O N O ° g 3 N N ° c a. * n0 rt 3 ° `� 0 "Tt c CD CD n 0 om _., �� ° = -�. � � nacD m3m `" 3 � N � ° oO ro — = rr (, (D of Z 3 r, I rt A7 UOQ drt 0. rrj 0 r0—tj 0. N 3a) Ort V) Z (=D V (aD C0i CD •--, v 3 ° No n N ° rr -Io) -. rn 3 .) °� O 0 fD 0rt O. rte_'* O' a c 3 10' ? 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S M 1, a -'°�• _ ,,, ;st ,_. _ , .. . . _, ,, , „.,..,. .,, ,.._ ,..„. ..7 ,,.....,.. ..„...„... ..,_,....,......,:.. „,...„,,,,,,.„....,,„,,,„5„.. .:„.„..,. .,,...a „......,, :„.._„,.. „..... .. . , , . : ...i . .,,, ._,.,, , _ 4 ., ,,,, ,-, ,-- .. ,,,,,:.. 4 ' • ,. ,`,,', _ • _k i 6 0 01)3 ,,,,,,,,,:-...,..s.,,, .:tti, , it:, :_ ... ._ , . r� a c, �+ T.-.1 ;7:.,,-1.--,11 C irk " - Presented by MINNESNTII RErovmassom e a REAL#STATEJOURNAL �, f QMS ",LMC , %. �"� IT o ST 5henehon Genter�for Re state s -- 4ponsar �y • City of Ilk River . ;f'y „-„jam "°T qty.o -fl. • . . . . . . . . . , .. ,. r.. . ,„. , . r . . . . . ' ,. . . . . ... . ..;...,,,,, .,,,,,-!:, •-•— ot-- - , k. ,.-,_ t ,;::,,„,,,----- - . : - ' , d- ,4_, f�� 33 _--,. _ ,. , F i .- .. .. 4,, ,,. ._,... -_ -_, - /-LL:' :•, "M' '+• 4,_,..,,,,-,„„.:„, 1 M,,,,,,...,.. ti„..,,,,....:,..--:„__,..-t„, 4 .., - ,__ _-, , , -_ -. - - ,,,, , ,, _ ...-_,....., „4., Ir--' . M '.. 'it:.1:-. ;'-ii.:',"..-”' :, . 1.....;;:i'..;f''..'''..,,,, 7i--_,-;,,, - . a . Er' :.,...., . . ks‘..,v,,::.,.4..-!:.,i.,9' ' -- : -,.10,1/ 0 ,, . . . - -- _...,..-----.- - -.. How TO MAKE SURE A REAL ESTATE DEAL ISN'T JUST SUGARCOATED. BEWARE of buying real estate from strangers. Gray Plant Mooty's Real Estate Team counsels buyers in all aspects of purchasing real estate,from investigating the property to developing negotiating strategies.Our clients include developers, investors, buyers, and sellers. We have extensive experience in land use, eminent domain, zoning, foreclosure, and environmental matters. So we can tell you how sweet that deal really is. Gray Plant Mooty Minneapolis 612-343-2800 St.Cloud 320-252-4414 www.gpmlaw.com 02002 Gray.Plant,Manly,Muory 8 Bennett,P.A. - GRAY 0 PLANT THE POWER.OF LAW FOR BUSINESS- 11/10 OTY USINESS`MOOTY • • NEW URBANISM CONFERENCE November 24,2003 Page 4 nu SPECIAL INSERT Place Malang In Eagan -_ ^- leadership,champions. by John Hohenstein -, -",. t;« �_4%i" Along the way,there has been other f-. ,...--:440-4-7---,04,----"''' ,-- " helpful advice: the reminder that final t s been said that New Urbanism at I; a,. -;„ ! ,. development will likely be different I its core,"ts the revival of the lost artthan initial concepts,the suggestion to r s ,fri,..-;;'''',,,,t-,:::,,,,,,,4,-,27, remain flexible on how the plan plays of place making:' To restore a diverse, �, 1 walkable,compact,vibrant mixed-use ' Igo> u- out while remaining firm on the goals. P M^p "- �k`el , , - Finally,there•is advice for the Bevel- community takes an integrated - opers too. "Redevelopment,''Prosser approach.Eagan,it started with this simple _ ilfr,il. i `" says,"is a relationship-based activity, ICal produced bya communitytask "•".r-• :..,4:,,,,, "- s4i not a transaction." Eagan now begins gforce nd adopted by the City Council. _ a,t.- the courtship to find the developer or "To once again make the Cedar Grove . fi developers who embrace the vision for Area a strong vibrant gateway to Eagan" - Cedar Grove and can bring their own That meant improving traffic access by .. -' innovative ideas forward. making more than$4.1 million in pub- '-nr pq.. With nearly 100 acres of land cleared lir improvements to the area. It meant _ s, d ar> 's- and ready for redevelopment in Cedar focusing on pedestrians,transit oppor- - �.-v,.."Y. rs , _ tet.. Grove, these are exciting times in trinities,and mixed residential and corn- T- "gig_ Eagan. Six separate districts within the t= l s redevelopment area have been defined inertia] needs and uses. It meant "' remembering to include public green 7ypw. qIttipt „ +, encompassing retail,hospitality,pstn_., space and cohesive design elements,all a rant,office and residential development. while being sensitive to existing land _ .-` ,. , ._ - m' With a recently updated market study, with the adoption of an innovative New uses. COURTESY OF CITY OF EAGAN When the Cedarvale Mall in west. Urban zoning district,streetscape Stan Eagan was at its peak in the early 1970s, Hohenstein dardsand design guidelines,Eagan is more than 50 businesses' everything looking forward to delivering that from an Applebaum's Grocery to Grove area has 0been made rdady for the customers)nearby,and a City staff that renewed"sense of place"that defines a Robert's Drug-attracted area shoppers. next chapter of its life-redevelopment in simply finds a way to get things done. community, revitalizes an important It was the only major retail presence for a tax increment financing district. But one of the best things Eagan did entry to Eagan, and makes Dave the miles around recalls Dave Ashfeld of Eagan took stock of the Cedar:Grove was to retain expert advice. Early on Barber proud. the Cedarvale Barbershop,one of two area's assets: its convenient location Jim Prosser of Ehlers and Associates original businesses in the mall still there close to the MSP airport and the Mall of cautioned that redevelopment is contro- Jon Hohenstein is the Community today. America, its access to all the major versial,that city officials should expect Development Director for the City Changes in access, visibility, and highways in the south metro,the nearly and encourage questions. He told us up of Eagan competition diminished its appeal,but 130,000 daily vehicle trips(potential front that redevelopment needs political now,more than 30.years later the Cedar ... ,/, DOWNTOWN REVITALIZATION City of Enhancing Downtown Elk River's role as a vibrant Elk residential, retail and commercial area. Rive? For more information on the Downtown Revitalization Project, The City of Elk River and MetroPlains Development are proceeding with plans �`" visit Elk River's Web site at for the revitalization and redevelopment of Elk Rivers historic downtown. i? �g N www.ci.elk-river.mn.us ;r �■=1 After many years of planning and redevelopment proposals that went nowhere, ltil E7gi� IIE t'' the city's progress can be attributed to: l alt city project,established project goals k t ` Clear Project Goals-The took control of the and concepts based on those goals before ever selecting a developer. -'I:e4:40 @!1 -. c'. Community Support-The city's public involvement process began early—with e i l a 4 + °I'ss a the development goals and concepts-and has continued with the public providing €' �� l ,..01.e..1.16,‘4 feedback at open houses at critical points in the process. '.e n j �y I t, II Ni , .t� (,� Market and Financial Feasibility- w v ti ,tis c ia,t nr taxi* i .zx, ► +' ' E01 fl L E R$ The city hired redevelopment consultant ,,_' +lam-":7=„4-i!..—„:..4a �4 ��.... I+ ;l a ASSOCIATES 1 N L and independent public financial advisor ,-;a ,�;:;� w � - ,. ,�72.1 Ehlers&Associates to assist with o"' v' t Is o C -j,-"' the project.Ehlers partnered with the city to develop a1,•,,,,,i 6 ISN C„ 1, I _ti y ;.f� competitive process to select a developer who could _ ) i m �e :'t tad '1` _1 ?�'w"' • re produce a development that was both market and :.` J�t Al ti , , • a.t fsa �4 ‘,,,,,k, ` k financially feasible. r Experienced Developer-MetroPlains Development �... was selected as the developer because of its past experience and its ability to develop a concept that has °- PROJECT DESCRIPTION—MetroPlains is completing financial feasibility and and market feasible and is supported site plans for two Clocks which will include commercial uses,far-sale housing been financially .f and rental units.underground parking m and a walking path a cit park. by the community. pp Shown isa conceptual rendering of the Bluff Block development. 0 iiThi we deliver value Builder of[owns. _ .. .., _.. . , ,.. . _ . .. . . . _ .. Creator of value. . ,,-,,. ._ • :. ...,4,,it.„„i: _-,-,•,,:- ..iii 7.- sc £ �� T !0 -c law' �Gi1 f'G -'-' ` oxu 1: =GET KOHcs =ate a �� • p. t l �,. r gR IAD MA WELLS , r r�Y t fit: ty 6r �� .-1.,,!,..',Z .�.�. fl4�� 'rcw sae 0.^_" "_.+.a...,. • , YIP" 0 I 'g s,- T.' i.K,A e- y III #tJ A ,rci ,H ai .._ bankus� A . lae kl Jllt omyo� ' , 1111 s H. 'F rtiOl1S Fooleraf � ,vZKOHCSCansG z. _, , 0 , .oppl(Oppidan Y2 Oppidan Investment Company 5125 County Road 101 Suite#100 Minnetonka,MN 55345 Phone:952.294.0353 I Fax:952.294.0151 • , NEW URBANISM CONFERENCE November 24,2003 Page 6 n SPECIAL INSERT Elk River Pursues Downtown Revitalization The City of Elk River is working on identified the core open house for the public.The HRA select- central business ed MetroPlains as its developer in August revitalization and redevelopment of its - district as the 2002. historic downtown and is in a preliminary -""`l. t,. focus of.redevel- "Another important aspect of our sue- development agreement with MetroPlains '` ^ p gr ,;, opment, and cess this time around with redevelopment to complete financial feasibility and site 0: developed a pri- has been our public involvement process," plans early next year. ° II' " maty goal for said een our h."Redevelopment is long, The purpose of the redevelopment is to ,, a ll redevelopment In hard and complex and things change.It rs enhance the role of Elk River's historic ,, l u February 2002, important to involve the public and bring downtown as a retail,commercial and res- s'col _ ..,.,�- I l the HRA held an them along in the process."To date,the city idential area,and revitalize the investment Ir x +>*'A has Geld three open made in the downtown business district. �'�Epi Iffi +' f ! 7 .. houses,published four t f„,I �, �� Currently,MetroPlains is completing I siad ri v t l*'. .,,., is ..' Eryg r -I editions of a special �19t l �s financial feasibility and final site plans for ,, „I„5.,> �r,,.� � r,. project newsletter and the redevelopment which will include two It ,,:i.... ,k _ r* ” � � '�,,,, has included informa- downtown blocks with a walkingpath con- a non on the project on its , I tl� � ifleeting to a city park. Project plans y,- q r F `m web site and in the city include: �� ..j...,,,,...7 ..,-` ` { �' .., ,, � newsletter. Jackson Block-About 10,000 square 'llA ; ,.�,,. � '.„7-:..1- Mehelich also notes feet of first floor commercial development - a ' i that the other aspectof along Main Street and Jackson Avenue;up ,- �'*"` s"" t the revitalization pro- to 52 underground parking stalls;18 sur- '" trr". ject is the rehabilitation face parking stalls to the east of the build- couRresr of ELK Riven _ of historic downtown ing;and 32 rental housing units within a Above:Conceptual Rendering Development. properties using grant three story building. Right:DownTcen Elk River Mississippi funding.The city has Bluff Block-About 10,000 square feet applied to the Minneso- of commercial space on the first floor along to Department of Main Street;70 to 80 underground parking that instead of asking the development open house '" ....-- - Employment and Eco- stalls;52 units of for-sale housing within a community what they cowl do for our fo[he coin- };" - "� nomic Development for • three-to-four story building;and a walking downtown,we took control of the project, muni on , -_- path connection to a city park to be built came up with a conceptual plan and asked d e st i n commercial and resi- dential development community for their pro- g denial rehabilitation along the river objectives, concepts and development funds.News on those grant funds is expect- "Our city had been planning for down- Pte " strategies.In March,the HRA issued a ed early in March. town revitalization and redevelopment for Elk River began working with Ehlers& re uest for ro sals from developers and 30 years and had seen several different pro- Associates as its redevelopment consultant recgeived five submittals.posals,"said Cathy Mehelich,Elk River in 2001.In September 2001,the Elk River The HRA selected MetroPlains,TOLD Director of Economic Development."The Housing & Redevelopment Authority Development and the Best & Hempel biggest difference in our current project is (HRA)developed a problem statement, development team to interview and held n MINNESOTA REjournais.com The UNIVERSITY of ST.THOMAS REALESTATEJOURNAL and LMC would like to Thank the following companies for sponsoring our Understanding New Urbanism & Redevelopment Conference rs'\-__r ' Sponsors: liili! R.t.x A&.ANCON OPPIDAN // \\ -V..41-..;" // q /j i \ Nrmu cssm.Mww \ // J 3 GRAY \ (- \ \ PLANT I ( A• AANCN City of Elk River City of Eagan J MOOT Y ) / • and the following speakers for participating in our New Urbanism and Redevelopment Conference • Peter K. Beck Cathy Mehelich Paul Tucci Jon Hohenstein Gray Plant Mooty City of Elk River Oppidan Investment Company City of Eagan Robert H.Cunningham Jack Byers Steve Schwanke Rick Collins TOLD Development Company Minneapolis CPED RLK-Kuusisto,Ltd. Ryan Companies Kevin G.Maas Bob Fields Tom Harmening Tom Hamilton Ancon Construction Company Landcor Companies City of St.Louis Park University of St.Thomas • 100 _. nu17r„..:1/4{1i,/,,l,1„l„*. * - tptri°:i.,..-„7.„:i1•- Providing design/build,general contracting, ` and construction management for 30 years. _4,i,:41.:2 ,cy ` ` ,` nr , rw• `4`9 it"- te> 1 u r, Tv3° ....,v,,,,-...,...1, '- sr #.#1..g.,-,1;c4-'''Vv. 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J . ;_ AMCON • + T 41.-,:'-,2'' .3 '' 1 �-i 200 West Highway 13 Burnsville MN 55337 _ 1e1:952.890.1217 Fax:952.890.0064 i +" = 3 - - '�' - www.amconconstruction.mm • Engineering • Planning • "Surveying • landscape Architecture Creating extraordinary Communities = _ e. . ., - RETAIL w 3 INDUSTRIAL/OFFICE RESIDENTIAL t --",-.'";z1._-‘7--- ---,-.. 4 LAND DEVELOPMENT :- SERVICES * tf ` -'v i` k � . Due diligence and site analysis ,„1�,; . d • • Public relations and government approval • - ., v . Public presentation material and drawings 3: - - • Concept and site planning . Site civil engineering design -".'.'---4'- v s, .. . Traffic engineering and transportation ` planning . Landscape architecture design Y'"� 't4 . Stormwater management and collection £ 4 Prajeet,C ntte Pcnnte'8usiness Park'Roseede,Minnesota systems . Environmental review and permitting (EAW, EA, AUAR, LSP, and others) 1 �'"""" I . Land surveying/construction I = — --._ < °`°"°` and ALTA/ACSM surveys . Subdivisions and platting ` v v. - k #'' . Wetland delineations s X1 s f • Construction observation , i, and administration L, ,. -1.,, 40.1.0 .4011.iiii-_--„,---- ,. ,:..-:--.1-:,.,„; ,, , 1 ''!:420* N..; ' f' .47'*'' . —t./;°' '-- '' ' '''''''- ' ,tf f 04.10 _ _ +. ' " - • =P0,,est.AlrntedliealihGroip+Incedilse-C.iNP¢s.Eden�Fmine^M nnesata; 6110 Blue Circle Drive, Suite 100, Minnetonka, MN 55343 952 933 0972 or toll free: 888 884 9678 www.rik-kuusisto.com 1 z =0 QvCI Cmz' _ ,._ � � � ❑ ❑ ❑ v 'Q"cn � � n�i W QvN \� ❑ ❑ ❑ a O. Q —rn a — V_ = h p �v Cn ) � _co .. Cn Cn Cn vcn � O ! ift Q 2 ,(o �m `G 7� O 3 c� d 1 .1,j 73 0 3 ccnmm � o O = '� rn c t7 X fD c ,� - O `— _ J�L._. _ o -, a Q cn. v o -n i RI'' " O O Q O V Q.. v N •—i- ^= -s O V = N w N r/� " ... V Sty • 3 0 {�°` tD OOfi a) "z V tg J� II 0 or, r '� -ngine up QS' oC� ' � cn 'CD 5. .-. (D p �. ° 93om v vpo �. 3 _vCD , 3N � � � 3p73,� ' g n � �. Oo410 ....." -...." •-•• m o > > n _ v,c_Q mup mr' 3 o3 .4 ,. . D5OQ 0 cnC - ).) 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CD 0 ° CD CD 3 p O '2 -71 Imo: tai; N p p p 3 N �(Q Qom_ (D Z k�> ,x'„ Q O C a) (n '-' 3• N O 3 Upi (D N p p O Q m `5 -f m in P v .. O Q nl gr.h 0 7 SEs. Sz � '.. % echnical III ,330, USA 274-1000 J3) 274-1118 The Developer-December/January 2004 jge- 6 12/2/03 12:16 PM • Develoner The EDAI1flit -..,,,.wklrtdtr i/fl#w t.tiiiwirtu:t)rriapowol 1 �roaal a t.11'i inniN,to EDAM 2004 Winter Conference: Growing, In this issue: Growing, Gone December/January 2004 Integrate and Implement Before the Opportunity's Cover Story Gone January 15-16, 2004 •Minneapolis Airport Marriott, Bloomington, MN From the President: It's Been My Pleasure EDAM's 2004 Winter Conference is just around the corner and it will prove to be another information-packed,idea-generating event. EDAM Foundation News Upcoming Events The conference will kick off with a luncheon featuring a welcome from Bloomington Mayor Gene Winstead, EDAM Member News followed by two sessions highlighting Tax Free Zones.The - first session,"JOBZ-Description of Program and 41) Welcome New Members Recipients,"will announce the ten lucky winners identified k as JOBZ(tax free)zones.DEED Director of Brownfields Legislative News and Community Assistance Meredith Udiobok will talk i ` Labor Market News about why the winners were chosen and how other areas . could be successful in the future.This discussion will be • October Employment followed by a session entitled,"Pennsylvania Tax Free Jumps by Highest in Zones Successes."The state of Pennsylvania created tax Almost Four Years free zones to help improve competitiveness with theo surrounding states.The director of their program will • Employment Growth is provide insight to help Minnesotans avoid the pitfalls. Scattered Among Keynote Speaker Minnesota Communities presentation on"Statewide Economic Development Peter Bell currently Development News Initiatives,"with DEED Commissioner Matt Kramer will serves as Chair for also take place on Thursday.The final meeting of the day the Metropolitan • Minnesota Business will be an information session on the EDAM Education Council.Prior to his Developments Foundation;an explanation of the expanded education current position, he was the Executive Vice President of opportunities and programs in which EDAM will be publishing and educational • Minnesota Perfect Again involved. services for Hazelden,a drug- on Economic Development abuse prevention organization. Report CardFrom 1994 to 1999,Bell served The last day of the conference will provide sessions on as Executive Vice President of • Entrepreneur and D&B's "Workforce Housing,"with Greater Minnesota Housing corporate community relations 10th Annual List of the Fund Representative Warren Hanson and"Economic for theTUnivF Bank.Bellisa member p of University of Minnesota Best Cities for Outlook,"with Minnesota State Demographer Tom Board of Regents and has Entrepreneurs is Released Gillaspyand Glenn Dorfman from the Minnesota served as a board member for the Citizen's League, Center of • AURI Awarded USDA Association of Realtors.The Lunch keynote should prove the American Experiment,Center to be a highlight as well,featuring Metropolitan Council for New Black Leadership and Grant for Aa Innovation Chair Peter Bell.Bell will share his thoughts on"Looking to FundGreater Minnesota Housing Center the Future:Metropolitan Council's 2030 Regional • Development Framework." EDAM thanks its This is an event for the economic development professional that you won't want to miss, http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page I of 15 The Developer-December/January 2004 12/2/03 12:16 PM Medallist Members for so make sure to register NOW! The registration brochure can be downloaded here for • their support... more information and a registration form;OR you can register online now,right here! (you must login to get the member rates). If you have questions about the conference,contact the EDAM office at 651-290-6296 or edam(a,ewald.com. Gold back to ton • Cente cEnergy Minnefiasgasco From the President: It's Been My Pleasure • Great Plains Natural Gas Co. As my term as president of EDAM comes to a close,I • Iron Range Resouces would like to thank the board of directors for their hard • Kraus-Anderson and committed work,the staff at Ewald Consulting,and • Minnesota Power in particular you the membership for making the • MN DEED organization what it is today—a healthy and growing • XCEL Energy,Inc. ' • association. My acceptance speech last January talked about Silverx specific goals and wishes I saw fit for the organization. • I believe they have been accomplished and then some.I am very proud to have played a role in establishing the EDAM Foundation and an excellent board of directors • AMCON Construction • Briggs and Morgan,P.A. for the foundation.They are off to a great start and I • City of Shoreview expect that the new organization will be very successful • Ehlers and Associates,Inc. in pursuing its mission. 11111 • MCDA • Springsted,Inc. Bill Lucking,EDAM President The Economic Development Response Team concept an initiative of the foundation is becoming a reality.Preliminary talks with DEED Commissioner Kramer were very positive as far as collaborating with the Bronze department regarding communities in the state that may need assistance with their E.D. programs.We should hear more about this in the future. The Emerging Roles in Economic Development panel at last summer s conference gave • Alliant Energy us an opportunity to understand the Minnesota Chamber s business retention program • City of Brooklyn Park and how we may play a role in this effort.Our educational programs will give chamber • Dorsey&Whitney LLP professionals a better understanding of how economic development works. • Great River Energy/ Northspan As EDAM s president,I have attempted to establish an alliance for a regional presence • Kennedy&Graven in the Greater Metro area.We are sorely lacking;we are one of few metropolitan areas in • Northland Securities,Inc. the country that does not have this kind of collaboration.It is long overdue. • ProSource Technologies • Schoell&Madson,Inc. The board of directors spent a great deal of time this past year considering RFP s from • Short-Elliott-Hendrickson association management firms.This long and arduous process is done every few years to • Twin Cities-Metro CDC test the waters and compare the service we are receiving from our current provider.The board decided to continue a contract with Ewald Consulting. Thanks! And so it's time for president-elect Paul Steinman to carry the ball and provide the leadership that is needed to continue the success of this professional association.I wish Paul and the board well.I wish all of our members well.It's been my pleasure... back to ton EDAM's 2003 Board of Directors EDAM ou dat on lye William Lucking http://www.ewald.com/EDAMENUEDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 2 of 15 The Developer-December/January 2004 12/2/03 12:16 PM : . ii !rfck nncJy. • • Progress Plus,Inver Grove A Heights x� ' 651-451 2266 " On October 9,2003 EDAM F© tjon metiiibers Jim�iiaciej, Fun Clawson,Dao bill 6 1-451-2266.ora 4 Anderson and Patrick C' u;3 were jx.oined by ED Board members Nancy N • Paul Steinman and EDAM' "dent Bill Lucking in meetingvvith Minnesota i " •Departrjxent of Employment anMcpomiaf4eveloprilex tt(DEED)C9mmissi `, Paul Steinman e First Vice President Matt Krarher and DEE) ff and E ,,AM Bard member Mark Lof ins: Springsted, St.Paul Inc., ": :o li EDAM Foundation's intei�in education,resealch and srt'olarship were 651-223-3000 explaiiitd,.with some c©m tnents•vrf'history%d EDAM1 ast Presidents'leadership. ' psteinmanna,sprinsted.com „ Linda Lund Primary#,>.. ion was on a draft document prepared by David Anderson regardin a Past President possible ', Foundation initiative,the Econogc Development Response Team; CRESA Partners (EDRT).Thifoundation recognizes that in times;, freed,s community may not bet 612-373-9181 able to attract in or respond creatively to development opportunity or crisik llund(a .con Very short-term m , ent by our state a best development problem solvers may be a way to directly invest in the future of Minnesota and in Apr com pities. Cathy Capone Bennett Professionals committed to a stronger future for Minnesotti matched$ _ • 'cbnumnities with a desire to improve their own future,could create a p new City of Roseville,Roseville economic development• 4. • ; xitiative. "� , ''. •m 651-490-2241 ., .: cathv.bennettaci.roseville.mn.us 3 :.There was considerable interest by Criimnissioner Kramer in this concept,as it LaDonna Boyd matched his perception that communiti may need, - 'fie,fame-limited help to IX Dakota Electric Association, competitive in today's economy.The AM Fo g• on is•planning to meet again`' • with Commissioner Kramer to discus this cone t in more'detail. Farmington :'$-•• •: •; 651-463-6232 Jim Maciej anj- ck Connoy will review and'develop ni EDAM,Rundatiotx lbovd@dakotaelectric.com "rte Internship Scholarsh gpuidelines,with an emphasis on direct intern involvement Jim Gromberg economic development-activities.••••'.,w • • Connexus Energy,Ramsey JimTrrricker will oversee ED Foundation fundraising activities.On November 6, 763-323-2785 2003 t e.State of Minnesota Office of Attom 4leneral notified the Economic jimarom(a,connexusenert;v.com �" ah• Development Association of Minnesota Foundation that the organization is now Rebecca Kurtz regis , ' with the Attoiney s neral as a charitable organization pursuant to Minna " • at40 • now legally enabled to solicit and accept your Ehlers and Associates,Inc., • ; 309.The Foundatiq ; Roseville erg 'y le �:. 651-697-8516 The Foimdation will next meet•on Janiry 9,2003.Contact Patrick Connoy at 612 rkurtz(a)ehlers-ono con 348-2215 or Patrick.Connovneo.henrtr xiin.mn.us.f•or more information. Mark Lofthus MN Dept. of Employment& ".%, r Economic Development,St.Paul ~'w� `•+ '"' 6 651-297-4567 To review the •cess of EDAM Scholarships awarded in the past go to i',e . DAIV web site. :� `r` mark.lofthusna,state.mn.us - . Nancy Norr back to ton Minnesota Power,Duluth 218-723-3913 nnorramnnower.com Pinnacle "Practical Solutions to Complex Environmental Problems." 763-315-4501 or 1-000-355-3406 Ai Nick Skarich Engineering • •.,,,,,„.,„„•., , . ,,,,,•„05,,,.'Pr . 1.1::«.,,5 7,F Northland Securities,Minneapolis 612-851-5907 nskarichanorthl andsecurities.com Upcoming Events • Be Heard! December 7-9,2003 Mid-America Economic Development Council's(MAEDC)2003 Mid-America Competitiveness Conference-Swiss tel Chicago,Chicago,IL Submit your items of interest help://www.ewald.com/EDAMENUEDAMENUEDAMDecJan2004/EDAMDecJan2004.htm Page 3 of 15 The Developer-December/January 2004 12/2/03 12:16 PM www.maedc.net-651-290-7495 4111 for The Developer to edameditor(a,ewald.com. December 11 Questions,call our staff editor at EDAM Holiday Party-Edinburgh USA-Brooklyn Park 651-290-6273. For more information and to register,go to the events page of the EDAM web site. January 15-16,2004 EDAM Winter Conference-Minneapolis Airport Marriott,Bloomington For more information and to register,go to the events page of the Submit your news for publication EDAM web site. in The Developer.Next Deadline is:January 10,2003. back to top EDAM Member News To submit your personal or organizational news for publication in The Developer,please e-mail kellvb(a,ewald.com. Dakota County Looks and Moves into Commissioner Sandy Layman Fills the Future Two Top Posts at Iron Range Resources CommiSandy Layman reach «+w decisions on oner two key management • positionsissat the Iron Range Resourceshas ed Agency. Layman announced that she has chosen Brian Hanson to serve as Director of Development Strategies.Hanson will leave his current position as a senior economic development analyst at Minnesota Power, where he has worked for twelve years,to take on the development strategies job Layman also announced that Brian Hiti, who has been serving as both Acting Deputy Commissioner and Director of EDAM President Bill Lucking,above,addressed Development Strategies on an interim attendees of the November 6th Summit. basis,would now become her full-time Deputy Commissioner. Dakota County s new private-public economic development organization, Waldorf Joins Initiative Foundation Dakota Future,was launched at the Board of Trustees conclusion of the Dakota County The Initiative Foundation announced the Economic Summit on November 6. appointment of Gene Waldorf,a retired Through the day,over 150 business and 3M engineer and former Minnesota State community leaders worked together to Senator and Representative,to its regional develop ideas for competing in the rapidly board of trustees. accelerating global economy described by futurist Ed Barlow.These strategies will As a State Senator from 1980 to 1992, be the basis for the work program of Waldorf worked in the areas of health and Dakota Future. human services,energy and public untilities,and higher education finance by EDAM members are playing an important serving on several legislative committees. http://www.ewald.com/EDAMENUEDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 4 of 15 The Developer-December/January 2004 12/2/03 12:16 PM role in this new organization.Bill Coleman He was also a member of the Legislative • has been selected as Dakota Future s executive director.Bill Lucking of Progress Audit Commission and the MississippiRiver Parkway Commission. Plus,LaDonna Boyd of Dakota Electric and Mark Jacobs of the Dakota County Kodak's Facility Unveils its "Presence" Workforce Council have been instrumental in Oakdale in planning and building support for this Members of the Oakdale City Council and new private sector-led initiative. Scott Kodak s Health Imaging Group dedicated Martin of the Northland Institute Kodak s new sign on Wednesday,October coordinated the summit planning activities. 30,2003,at their location near the intersection of I694 and Highway 5 in Oakdale. At a reception following the Summit, DEED Deputy Commissioner Yecke Kodak currently shares its research and recognized Dakota County as Minnesota s development space with Imation and also leading county for E-Commerce Ready has a manufacturing and warehouse facility activity. Most of Dakota County s located near Granada Avenue and Highway communities have now achieved E- 5.The Health Imaging Group employs 550 Commerce Ready certification and the workers and develops and manufactures remaining communities are close to the DryViewTM medical laser imager. completion.The e-commerce initiative Late in 2002,Kodak was looking at plans involved a wide range of players,including to build its own facility in the surrounding local governments,chambers of commerce, area but decided to remain at Imation by school districts,area colleges and signing a new 5-year lease. community volunteers.Building on the activity at the local level,the county s technology committee is moving "7 aggressively to improve technology use ; 1 within all economic sectors. ' ' ',$ IF tii 0 , ,,,,„,,,„ 111 Diversified Construction News1, b` St.Louis Park-based Diversified Construction has ranked#33 in the Top Pictured in front of the new Kodak sign are members 500 remodelers in Qualified Remodeler of the Oakdale City Council,Kodak's Health Imaging Magazine. Group, and other area elected officials. News from Maple Grove The contractor has also recently begun The City of Maple Grove announces the construction on BelleNotte,a restaurant in following developments.The Arbor Lakes Block E;Heart's Desire in the Mall of Building 15 mixed-use retail and office America;Panchero's Mexican Grille, building will be constructed on an Golden Valley;and the Pickled Parrot approximate 4-acre site on the northeast Restaurant, Uptown. quadrant of Main Street and Arbor Lakes Parkway. The two-story L-shaped Greater Mankato Economic building with lower level parking will Development Corporation's Brian include approximately 33,000 square feet Fazio Unexpectedly Passes Away of retail and restaurant space on the first Brian Fazio,35,executive director of floor and approximately 24,000 square feet Greater Mankato Economic Development of office space on the second floor.The Corporation,passed away unexpectedly Shoppes At Arbor Lakes will now include on Nov.22.He was in Massachusetts the Granite City Food&Brewery visting family when he suffered a heart restaurant(a full-service restaurant with a attack while jogging. full service bar),Eddie Merlot's,a fine dining restaurant and M&I Bank,a 5,400 square foot free standing branch bank.The Kudos and t lekrations for Elk Rivti Bridges At Arbor Lakes is currently under A4anafacturel°ai` construction and includes 194 attached In recent months,a number of local firms dwelling units on approximately 22 acres. have reached milestones or been Y This is the first phase of an overall IIII recognized for other achievements: development consisting of 198 acres and Great River Energy celebrated its 4 approximately 1,750 units. City County millionth ton of solid waste converted to http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 5 of 15 The Developer-December/January 2004 12/2/03 12:16 PM • electricity with an open house attended by Federal Credit Union will construct a over 200 people. 23,000 square foot 2-story(with 't Cymbet Corporation was recognized by basement)facility.The building is designed with a predominantly brick and glass Finance and Commerce Media Group as exterior. one of 15 Innovators of the Year for its thin film batteries that will eventually Met-Con Construction Awarded power hearing aids,semiconductors,or Contract even real-time clocks. Met-Con Construction has been awarded Y Sportech was again placed on The the contract to build the new Lake City Business Journal s Growth 50 for Private Vehicle Storage facility for the City of Companies,this year ranking number 35. Lakeville.This 19,000 square foot project consists of two buildings:the first is a 5000 square foot addition;the second is a 14,000 square foot new facility.The 0 At,V ' ' '' project architect is Yaggy Colby. Completion is scheduled for February 2004. > ' Minnesota Technology Names New President The Board of Directors of MN Technology has chosen Dr.Wayne Pletcher,Direct of Corporate Technical Matt Kramer presented Rich Duggan and Charles Planning for 3M Company,as its new Butcher of Marketech with a plaque signed by leader.Wayne has had a stellar career in Governor Tim Pawlenty recognizing Marketech's contributions of manufacturing to the Minnesota leading-edge technology development in economy. one of the world's most innovative companies and has expressed a real • In addition,the Elk River Economic Development Authority organized an passion to bring this expertise through services to the companies of Minnesota. event to highlight Manufacturing and Technology Week during the fourth week News from Schoell&Madson of October.The event featured tours of Schoell&Madson,Inc.,a full-service Cymbet Corporation and Marketech prior consulting engineering company,is pleased to a luncheon at the Elk River Country to announce the opening of its new Elk Club.To show his support for the River office.Schoell&Madson have importance of Elk River s efforts to foster proveded civil engineering,surveying, a great manufacturing community,Matt planning,landscape architecture, Kramer,DEED Commissioner,took time environmental and construction from his busy schedule to welcome management services to the private and attendees. public sectors since 1956. back to ton III http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 6 of 15 The Developer-December/January 2004 12/2/03 12:16 PM City .. dale K Coy Atlinleit4t000t (4S1)71147.0 tvotit*i itidtry AVCIWC Nwrbh adaidei MP MAU Ft(04)730,2M# Witte citAtakdoile.mit Welcome New EDAM Members! Individuals: David Lambert,Broin&Associates,Sioux Falls David Krueger,City of Arlington Marci McLaughlin,MN Rural Partners Make EDAM work for you! Get involved on an EDAM Committee If you're interested in the Legislative,Education,Communications&Technology or Membership Committees,please send an email to edam(a,ewald.com or contact the EDAM office.We welcome your involvement and your ideas.Check out details on how to do so at the EDAM web site. EDAM Welcomes New Committee Members: Education Committee Scott Marquardt,Director of Montevideo EDA Juan St.Mane,Center for Training and Development,Brooklyn Park Kathy Showalter,PlanScape Legislative Committee Tom Moore,The Partnership Erik Aamouth,Director of the Workforce Partnership Division of DEED Reminder: Be on the lookout for your 2004 EDAM dues renewal.This year the renewals will be sent to the primary contact at each member organization only.When you receive it electronically,please pay it promptly to prevent disruption in service.Thank you for being members of EDAM! If you know of someone who would benefit from being an EDAM member please forward them this newsletter and encourage them to contact EDAM at 651-290-6286 or edamna,ewald.com. back to top s http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 7 of 15 The Developer-December/January 2004 12/2/03 12:16 PM • Cityof maple Grow Alan A. Madsen, City Administrator "Serving.Today,ShapIg Tomorrow'" 12 Arbor Lake%Pt*rkwaryr.P.O.Box III hlapkG rve,MN sW 11x61SO MOW - (763)4 1 Fox:.(763)4944421. wwwxi.tropirimtworoom Legislative News 2004 Session Preview By Kathryn S. Hahne ° The 2004 Minnesota Legislative Session will convene on Monday,February 2 for what is expected to be—hoped to be!—a"short"legislative session.Legislative leaders predic a Session that focuses primarily on state General Obligation Bond funding for capital projects and expect to be finished by the end of April or very early in May. There are two upcoming revenue forecasts—one in early December and one in February —that can throw a monkey wrench into these optimistic predictions.While the 2003 Legislature fixed Minnesota s$4.5 billion budget shortfall,they did it with economic • growth projections that may be optimistic,and they also did not factor inflation into the state s budget.Thus there are those legislators and others who are predicting that the December or February forecast may project a continuing budget shortfall for Minnesota. If that were the case,the 2004 Legislature would have to first revisit its current biennial budget for either new forms of revenue or further programmatic cuts,or both,before it can get on with any of the many capital bonding requests that will be in front of them. Thus proposals that ask for any type of funding will face a very steep uphill battle this legislative session. There will certainly be a variety of bonding projects proposed both by state agencies and various local units of government.The state funds capital projects every even year and funding for these projects is generally viewed as the hardest fought-over funding in any legislative session.This is not to say that there won t be numerous policy proposals from legislators on a wide array of topics.Legislators are always eager to leave their mark during a legislative session and,coincidentally,to also have accomplishments to point to when running for reelection. The shorter capital bonding legislative sessions are always much more intense and faster- paced than the longer budget year sessions.It s very important in these even year sessions to hit the ground running with legislation that is already drafted,authors chosen, and supporting testimony and support well organized.Legislators can introduce legislation at any time during the legislative session,and legislation that was introduced in 2003 carries forward and is still"alive"for the 2004 legislative session,but legislation that has the best chance of ultimately becoming law is introduced early in the 2004 session and advocated right from the start of the legislative session. The EDAM legislative committee has completed its legislative policies for 2004 and is • working hard on planning the Day at the Capitol for Tuesday,February 17.We will also be posting a spreadsheet that lists each of EDAM members individual legislators and contacting you in the future to solicit your help in building relationships with key http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 8 of 15 The Developer-December/January 2004 12/2/03 12:16 PM legislators from those lists.Once again,EDAM members will get weekly tracking reports of legislation that may be of interest to members,along with regular updates on the status of our legislative issues.If you ever want to check on the status of a bill yourself or review the text of specific legislation,that information and more can be found on the Minnesota State Legislature s homepage at httn://www.leg.state.mn.us.If you have suggestions or questions on EDAM s legislative agenda call Marc Nevinski,Legislative Chair,at 763-767-6451,or me at 612-766-8759. You can also keep up-to-date on EDAM legislative issues on the EDAM Web site.On the home page there is a section called Legislative News where updates are posted regularly during session. back to top Labor Market News October Employment Jumps by Highest in Almost Four Years DEED Commissioner Matt Kramer announced that Minnesota s seasonally adjusted unemployment rate for October was 4.6 percent,unchanged from September. Seasonally adjusted monthly employment increased by 8,500,the biggest jump since February 2000,well before the onset of the recent recession.Every major sector except trade,transportation,and utilities(TTU) moved upward in October. The state s unadjusted unemployment rate for October was 4.1 percent. • Minnesota s recovery has been gaining momentum for the last several months,but October s employment numbers are even more encouraging than expected.It s one more sign that points to an energized economy in 2004, said Commissioner Kramer. ° Unadjusted Rates ° Seasonally Adjusted Rates Minnesota National Minnesota National October 4.1 percent 5.6 percent ° 4.6 percent 6.0 percent September 4.4 percent 5.8 percent ° 4.6 percent 6.1 percent A year ago 3.8 percent 5.3 percent ° 4.3 percent 5.8 percent County and substate figures for October should be available at www.mnworkforcecenter.org/lmi/taus/. back to top • • • • Employment Growth is Scattered Among Minnesota Communities Minnesota employment has contracted 2.7 percent since the start of the recession—but the recession has not impacted all industries and places equally.Newly released employment statistics from the DEED provide local details on where job losses and • gains have occurred over the past two years.In fact,the recession has noticeably rearranged rankings of Minnesota s growth leaders. http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 9 of 15 The Developer-December/January 2004 12/2/03 12:16 PM "Economic activity really happens at the local level,"said Matt Kramer,Commissioner 4110 of Employment and Economic Development. "Analyzing the local changes provides market-watchers with a better understanding of the opportunities and challenges that lie ahead." Several Minnesota communities have added jobs despite the challenging economy.Eagan leads the state with net growth of 4,677 jobs.Employment based in Richfield has expanded by 2,444 jobs.Minneapolis and Bloomington have suffered the most severe losses since 2001. Top Five Cities Qtr 1 2001 Qtr 1 2003 Net Job Adding Jobs in Employment Employment Growth Minnesota Eagan,Dakota 42,331 47,008 4,677 Richfield, 11,506 13,950 2,444 Hennepin Wayzata, 6,104 7,930 1,826 Hennepin Rochester, 78,554 80,148 1,594 Olmsted Golden Valley, 29,964 31,528 1,564 Hennepin Top Five Cities Qtr 1 2001 Qtr 1 2003 Net Job • Losing Jobs in Minnesota Employment Employment Loss Minneapolis, 305,403 283,427 -21,976 Hennepin Bloomington, 99,730 89,319 -10,411 ennepin Minnetonka, 51,059 42,415 -8,644 Hennepin St.Paul,Ramsey* *Not comparable as time series -8,000 (est.) Ft. Snelling-MSP 35,702 28,989 -6713 Airport, Hennepin back to top back to top Development News Minnesota Business Developments by Mike Casey,Labor Market Analyst,DEED • online at www.MnWorkForceCenter.org Northern http://www.ewald.com/EDAMENUEDAMENUEDAMDecJan2004/EDAMDecJan2004.htm Page 10 of 15 The Developer-December/January 2004 12/2/03 12:16 PM For more than ten years workers at Minnesota Diversified Industries(MDI)in Hibbing, MN have produced plastic tote trays for the U.S.Postal Service.Recently,the Postal Service cut its demand for new trays by one-half.As a result about one-third of the current workforce will lose their jobs.Many of these employees have some level of disability that makes it difficult for them to find employment opportunities elsewhere. MDI,a nonprofit corporation,creates employment for people with disabilities and disadvantages.The company employs about 500 workers at three sites in Minnesota; one-half have disabilities and another 25 percent face significant cultural disadvantages. New employment for the 50 to 60 workers who lost their jobs due to reduced demand for these plastic products will be difficult to find. The world s fourth largest airline will close one of six reservation centers it operates around the country.Detroit s impending loss of its facility serving as a reservation center for Northwest Airlines(NWA)will benefit the five sites remaining open,including two in Minnesota.The Detroit operation will close in December with a loss of more than 560 jobs.NWA s call center in Chisholm will pick up 100 new positions,as will the airline s center in the Twin Cities.The airline also expects to add positions at its three other reservation centers to handle the increased activity following this closing.A small number of employees are expected to transfer from Detroit to one of the five sites remaining open. By the end of this year,State officials will know if Minnesota has landed a service center facility for Bombardier Corporation.The plant would service Bombardier Aerospace aircraft for the western United States.State officials are stressing the high quality workforce and possible tax benefits available to companies creating new jobs in the state. If the state s proposal is successful,the maintenance plant would bring several thousand jobs to northeastern Minnesota.As of early October,the company was still considering plans offered by Minnesota as well as those from other states. Twin Cities/Metro Area One of the country s leading providers of credit products and services has experienced a second round of layoffs in 2003.Metris Companies Inc will cut some 65 workers,most of whom worked in the company s headquarters location in Minnetonka.This reduction follows one early in the year when 180 jobs were affected.In both situations,the company laid off up to one-fourth of its management positions.Metris sees the layoffs as a way to achieve profitability during a slowing economy.Some 500 company jobs will remain in the state after this round of layoffs. A continuing sluggish economy has placed a MN business in the position of experiencing its largest layoff in nearly 100 years of continued operations.The Smead Manufacturing Co.,a company not known for layoffs,recently let go about 50-60 employees due to the persistent decline in sales of its office products.Rather than subject some of its workforce to layoffs over a year ago,the Hastings-based company entered into a"shared work"program available through the MN Dept of Economic Security(now DEED)that allowed employers to reduce workers hours by 20 percent.Affected workers could then draw up to one-half of their lost wages using the company s contributions to the unemployment fund for a limited number of weeks.(See the MN Employment Review, April 2002.)Temporary plans such as these were not sufficient to overcome the prolonged slowdown in sales. Amid accounts that the Ford Motor Company is planning to trim more than 3,000 jobs over the next few months,the local assembly plant received some encouraging news in early October.The St.Paul plant will remain operating for at least the next three years. And not only will the more than 2,000 workers retain their jobs through 2007 but the St.Paul site will be the only Ford facility producing the best-selling Ranger pickup model.The plant s high efficiency rating is thought to have been important in the 411 decision to close the other Ranger production plant and consolidate operations in Minnesota.Ford will close three plants over the next six months while other U.S.sites will experience production slowdowns as the company attempts to cut costs by 10 percent.Another encouraging note will be the addition of a compact pickup model http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 11 of 15 The Developer-December/January 2004 12/2/03 12:16 PM bearing the Mazda nameplate.The St.Paul plant will produce up to 20,000 units of the 2005 model year. The aroma of fresh bakery goods will be more difficult to find in the Twin Cities when McGlynn s Bakeries closes its four outlet stores by early December after more than 80 years of producing breads,rolls,muffins and doughnuts.Some 45 employees will be immediately affected with another 125 workers uncertain of their future.These employees work in the retail sector at sites leased by the company in grocery stores. Some may become employees of those stores losing the McGlynn bakery service. McGlynn s will focus on their frozen food products,a fast-growing segment of their product line. eFunds,a software developer providing technology solutions to a variety of businesses and government agencies,is continuing a restructuring plan including consolidation of operations and reductions in employment levels.The company laid off 180 workers in mid-September,some of whom worked at locations in Shoreview and Woodbury.This round of staff reductions also affected employees at three other sites in three states.A spokesperson indicated that more layoffs were expected.Originally founded as a part of Shoreview-based Deluxe Corporation to develop electronic storage services for customers,eFunds was spun off after several disappointing years.Now based in Arizona,the company has about 4,500 employees world-wide. Minnetonka-based Norstan Industries has announced a second round of layoffs.The full service telecommunications company will cut another 100 positions above the nearly 100 job cuts of early September.The company,in business since the early 1970s,did not indicate where the cuts would take place among its 1,400 employees in 31 locations across 14 states and four Canadian provinces but the combined effect of the two separate layoff events will affect up to 14 percent of its workforce. • Central The second-largest retailer of automotive parts in the nation will open another location in Minnesota in early December.With 2,500 retail stores in 38 states,Puerto Rico and the Virgin Islands,Roanoke,VA-based Advance Auto Parts,Inc has chosen a site in St. Cloud for its third store in the state.While it has taken the 71-year old company awhile to reach Minnesota,Advance Auto opened its first two stores in smaller communities in southern Minnesota(Albert Lea and Austin)since mid-August.Advance Auto serves both the do-it-yourself and the professional mechanic with a goal to keep his/her vehicle running.A relatively small in-store sales force of 10 to 12 employees will provide expert advice on automotive questions and fast parts delivery for its customers. Needing a larger facility to replace an extrusion plant it has outgrown,Andersen Corporation looked at options which included sites in other states.The company,the world s largest producer of wood windows and doors,currently employs about 40 workers in White Bear Lake,MN.The possibility of losing these jobs and the nearly 100 additional positions that a new and larger plant would create provided the impetus for the State and North Branch,MN to put together an economic development package to keep Andersen s expansion in Minnesota.The new building site is near the plant that will close so the company will transfer the existing skilled workforce.Construction is expected to be completed by spring of next year. Southern An aging food production facility employing about 225 workers in a small community in southern Minnesota will soon be shut down.ConAgra Foods Inc,one of the country s largest packaged food companies,has announced plans to close its plant in Wells,MN by early next year.Production will be phased out over the next five months and transferred to a newer,larger site in Texas.A spokesperson indicated the Wells facility was beyond its capacity and the company was unwilling to make the necessary investment to upgrade the existing plant.Nebraska-based ConAgra has been in the food business for more than 135 years. http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 12 of 15 The Developer-December/January 2004 12/2/03 12:16 PM Candy lovers will have one less source to alleviate their sweet tooth cravings after Shari Candies,Inc.closes its doors.The Mankato-based firm,a packager of candies for nearly 60 years,could not find a buyer to continue the operation. So current owners announced the company would close.About 30 employees were laid off in late September;the remaining 20 workers will continue for up to two months to complete existing orders. Mankato-based Hickory Tech Corp has announced that the company will sell all of its wireless business sometime in December.The company is a diversified communications firm employing nearly 500 workers in Minnesota and Iowa.About 35 employees working in several communities in south-central Minnesota will be affected by the sale. Those positions are in sales,sales support,customer care and engineering.However,the new owner,Western Wireless Corp.based in the state of Washington,is expecting to offer some employment opportunities following the transfer of operations.Hickory Tech has provided telephone services for more than 100 years. Plans for expansion at Winona-based Fastenal Co.continue to be aggressive.The company,the largest distributor of fasteners in the nation,owns more than 1,300 stores, almost all in the 50 states and Canada.More than 100 stores have been opened in the past year alone;there are nearly 50 stores now located throughout Minnesota.The newest store location to open will be in New Ulm.Fastenal is now the fastest growing full-line industrial distributor of a wide variety of products.It operates 12 distribution centers and a fleet of nearly 300 trucks to provide cost-effective and timely delivery services to Fastenal customers and stores. back to top • • • • 411 Minnesota Perfect Again on Economic Development Report Card For the third consecutive year,Minnesota scored straight A s on the Corporation for Enterprise Development s(CFED)annual report card,the nation s most broad-based index of the economies of the 50 states.Just two other states—Massachusetts and Virginia—scored as well as Minnesota this year. CFED,a non-profit nationwide economic development organization,uses 68 criteria to measure relative state-by-state economic development success in three main categories: performance,business vitality and development capacity.In releasing its 2003 "Development Report Card for the States,"CFED adopted a generally subdued and cautionary tone about the overall U.S.economic performance.But its assessment of Minnesota s performance was upbeat and encouraging. For example,while the survey suggests that many American families are still struggling financially,with higher unemployment and lower wage jobs,Minnesota"is cruising right along"in categories like employment,earnings and job quality,and quality of life. Minnesota was judged to be a"top performer".In business vitality the state is strong but not invulnerable.And in development capacity the survey found plenty of reasons for Minnesotans to take pride,specifically in the areas of human resources,financial resources and innovation assets. Minnesota ranked among the top 10 states in 27 of the 68 performance criteria and ranked in the bottom 10 in just one category.The complete report card is available at: www.drc.cfed.org. back to top • • • • • Entrepreneur and D&B's 10th Annual List of the Best Cities for http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 13 of 15 The Developer-December/January 2004 12/2/03 12:16 PM Entrepreneurs is Released Entrepreneur magazine and D&B's 105th annual listing of the best U.S.cities for entrepreneurs is featured in Entrepreneur's October issue.The special report highlights the U.S.cities that are the best places for entrepreneurs to start or grow a business. The Minneapolis/St.Paul tops the national rankings for large cities.In 15th place last year,the Twin Cities have made an impressive improvement in overall economic health. This health is attributed to growth and stability of existing businesses more than emergence of new business,according to D&B. Cities are ranked according to Entrepreneurial Activity(based on the number of businesses five years old or younger).Small-Business Growth(based on the number of businesses with fewer than 20 employees that had significant employment growth from January 2002 to January 2003),Job Growth(change in job growth over a three-year period through January 2003)and Risk(bankruptcy rates). Christopher Puto,dean of the college of business at the University of St.Thomas in Minneapolis,says one factor the aforementioned criteria doesn't take into consideration is the Twin Cities'creativity quotient."The people in this region are highly supportive of creative activity,"he says.He traces the creativity-valuing culture to the fact that 3M Corp.,the famously inventive creator of Post-it notes,Scotch tape and countless other standards,is based there. "[3M's]whole culture spawned this,"Puto says. For the complete story and listing,pick up a copy of the October 2003 issue of Entrepreneur magazine,or read it on Entrepreneur.com at www.entrepreneur.com/ bestcities. • • • • AURI Awarded USDA Grant for Ag Innovation Center The Agricultural Utilization Research Institute(AURI)has been selected as one of 10 national recipients of federal funds to establish an Agricultural Innovation Center.The$1 million grant from the U.S.Department of Agriculture will be used to establish a center focused on providing assistance for projects involving producer-owned energy such as ethanol,biodiesel and co-product utilization. The 2002 Farm Bill included provisions creating the Ag Innovation Centers,which are designed to provide technical and business assistance to develop markets and processes for value-added agricultural commodities and products. The Ag Innovation Center will operate as an independent body,based in Marshall,MN. The Center will provide technical and business assistance for producer-owned ventures focused on generating energy from renewable sources.The Center will tap into expertise available from AURI or other organizations best equipped to provide the necessary resources. A total of ten grants were awarded through a competitive application review.Those selected demonstrated a track record of achieving value-added successes,experienced personnel,developed a strong work plan,placed an emphasis on utilizing non-Federal funds and showed a commitment to measuring performance of value-added activities. AURI is a nonprofit corporation created to improve the economy of rural Minnesota through the development of new uses and new markets for the state s agricultural commodities. back to ton http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 14 of 15 The Developer-December/January 2004 12/2/03 12:16 PM 4111 Download The Developer in .pdf format! 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The Developer-December/January 2004 Please contact the Kelly Biedny at the EDAM office with any questions,651-290-7497 or kellvb(aiewald.com. back to ton '2002,2003 Economic Development association of Minnesota(EDAM).All Rights Reserved. • http://www.ewald.com/EDAMENL/EDAMENL/EDAMDecJan2004/EDAMDecJan2004.htm Page 15 of 15 KNEtica. • REQUEST FOR ADDITIONAL INVESTMENT TO: THE INITIATIVE FOUNDATION C/O SANDY VOIGT FROM: KNOWLEDGENETICA DATE: 11/25/2003 CC: ANOKA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP; 1TY OF ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY; ANOKA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP DEAR SANDY, Thank you for your support for KnowledgeNetica.As you have seen in our recent newsletter,we have filed with the Minnesota Secretary of State to do business as K-Netica — a small simplification so people will be able to pronounce the company name more readily. We are very close to achieving product revenues.We expect to ink an agreement this year with a division of The St. Paul Companies to use our Intelligence Fusion product to assist their underwriters in finding and analyzing large amounts of information about prospective customers, especially companies in businesses in which they have less experience and knowledge about potential causes of loss. We expect first revenues from that contract this quarter. We are also progressing with our homeland defense prospects and expect first revenues from • Federal customers during the first quarter of next year. I have attached our updated projections which include payroll data and the distribution of revenues we anticipate. Please note the ramp-up of employment (page 10 of the spreadsheet — Payroll Distribution) that goes along with our first product introductions. You'll notice that we are planning to take out an SBA loan. We have approached Greg Hohlen of Bremer Bank in this regard. This will permit us to hire two technicians and two support personnel full time. Our facility in Elk River is more than adequate to support our planned growth over the next four months. We anticipate a need to expand within the facility by mid-year,2004,and graduate from the incubator later in the year. Roger Jensen had planned on making a follow-up investment in July, and had it not been for his untimely passing, I am confident he would have followed through. I have stayed in touch with Lori Wawers, and I am pleased that the Board recently decided to proceed with the organization. I am personally determined to reward their investment and yours by increasing employment opportunities in this area by providing well-paying job opportunities. An additional investment from you at this time would be extremely helpful to us in reaching our goals. If you would like, we would be more than happy to provide a formal presentation to the Initiative Foundation regarding our progress and our projections. If there is any other documentation you would like, please let us know and we will gladly comply.Thank you again. Sincerely, • "Joseph C.Roushar President