6.0. EDSR 12-08-2003 ITEM # 6.
• '^1,
Oty of
Elk
River
MEMORANDUM
TO: Economic Development Authority
Mayor & City Council
Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: December 8, 2003
SUBJECT: Discuss Update of Economic Development Strategic Plan
Attachments
• 2000-2003 Economic Development Strategic Plan,Revised November 1999
• • Economic Development Strategic Plan,Adopted May 1997
Issue
The first Economic Development Strategic Plan was adopted in May 1997. At its two-year
anniversary in May 1999,the EDA determined that the original Strategic Plan should be
updated. It is now 4 years since the most recent revision to the 2000-2003 Plan.The EDA
has included in its 2004 budget an amount up to $3,500 for the update of the Strategic Plan.
The Strategic Plan provides a framework for the Commissions to work within and focuses
staff energies on those priority areas important to the economic health of the City.
Background
1997 Plan
The 1997 original Strategic Plan utilized a taskforce comprised of volunteers representing the
following groups:
• Mayor/City Council
• EDA
• HRA
• Chamber of Commerce
• Utilities Commission
• Downtown Representatives
411 • Local Business/Industry Representatives
Update of Economic Development Strategic Plan
December 8,2003
Page 2 of 3
The Taskforce also called upon the special areas of expertise represented by the EDA for
input on issues related to the city's industrial base, and the HRA for input on issues related
to downtown development/redevelopment. The strategic planning process was facilitated
by Jim Brimeyer,The Brimeyer Group, a professional consultant with a high level of
expertise in group facilitation,plan development and city operations.
Through the process, four major issues which affect the economic growth of the City of Elk
River were developed:
• Issue - Industrial Base
o Goal-Attract new businesses to increase the city's industrial base.
• Issue - Business Retention and Growth
o Goal-Retain and grow the city's existing business/industry.
• Issue- East Highway 10 development/redevelopment
o Goal-Redevelop the east Highway 10 corridor
• Issue- Downtown Redevelopment
o Goal-Attract reinvestment in the Elk River central business district.
1999 Update
The 1999 Modification Committee consisted of the HRA, EDA and City Council. The
purpose of the modification was primarily to reexamine the four major issues and related
goals and determine if they were still applicable at that time and into the year 2002. The
Modification Committee agreed that the four original issues expressed in the Strategic Plan
would remain-with some reprioritization. The major shift in issues occurred with the
moving of the Downtown Redevelopment to a lower priority issue and heightened the need
for a focused Industrial Marketing Strategy.
Many of the action steps identified in the 2000-2003 Plan have been completed. At the same
time,new challenges and opportunities have arisen that may require a joint discussion of the
EDA,HRA and City Council,including but not limited to:
• Role of Strategic Plan in supporting the Comprehensive Plan Vision for the future
• The City's role in housing and housing's relationship with economic development
• Implementation of the downtown revitalization project
• Evaluation and prioritization of other redevelopment areas (north of Highway 10 at
Jackson,Ron's Foods, northeast corner of Proctor and Highway 10)
• Challenges to siting industrial prospects in private business parks
• Future role of the business incubator
• Future role of Energy City as a marketing tool
Discussion Points
• Do the EDA,HRA and City Council feel the need to revisit the Strategic Plan?
• If so,what process should be used to update the Plan? Taskforce or Modification
Committee? Staff recommends that the City utilize the services of an outside party
facilitator, such as Mr. Brimeyer again.
• Does a late afternoon-into evening work session accommodate commission and
. council members to discuss the Plan update?
• Are there other Commissions that should be involved in the Plan updating?
Update of Economic Development Strategic Plan
December 8,2003
Page 3 of 3
Next Steps
With the EDA,HRA and City Council consensus to update the Economic Development
Strategic Plan, staff will continue discussions with Mr. Brimeyer to submit a proposal for
cost,process and timeframe to complete the Plan update. Staff will provide a copy of the
proposal at the January meeting.
•
r
air rM�n c
•
4
o E River
City
2000-2003
Economic Development
Strategic Plan
Adopted May, 1997
Revised November 1999
S
•
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•
Elk River
"A historic river community serving as a
regional center with a favorable location
near the Twin Cities metropolitan area "
Our mission is to actively participate in economic
development by utilizing available resources to
leverage viable and healthy investments in our
community. Such investments will create diverse job
opportunities as a result of a stable and growing
business and industrial base. We will strive to provide
quality services, maintain a favorable tax rate, supply
full-cycle housing options for our residents, and foster
an environment that will result in substantial growth of
our local economy.
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Modification Committee
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City Council
Economic Development Authority
Housing and Redevelopment Authority
•
Facilitator: Jim Brimeyer, The Brimeyer Group
•
•
•
Ma r Issues and G
• Industrial Base
• Attract new businesses to increase the city's
industrial base
• Business Retention and Growth
• Retain and grow the city's existing
business/indus
trY
• Marketing Strategy
• Create an industrial marketing strategy to
develop the city's business parks.
Develop/Redevelop E. Hwy 10 & the
CBD
• Undertake activities that facilitate
development/redevelopment on East Highway
10 and in the Central Business District.
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127 z,
VVi. frfr%0
I. Grow Industrial Base
Goal: Develop West Business Park
* Maintain current joint development agreement with Tony
Emmerich.
• Consider a joint development agreement with Gagne and
Wilson.
• Develop well focused target marketing tactics:
• Market to brokers and others with connections to industry, such
as MN Technology.
• Target an industry cluster, such as the energy industry (Energy
City).
• • Work with local industries to market Elk River to their suppliers
and customers.
• EDA to research construction of a spec building and locate a
tenant.
• Establish bank partnerships
• Establish developer partnership
• Identify funding sources (i.e. franchise fee revenue)
• Consider completing construction of Business Center Drive.
• Explore marketing methods employed by developers and
builders.
* Examine appeal of West Business Park to specific types of
industries. (Target marketing, Industry cluster)
# Develop specific marketing materials for West Business
Park.
# Maintain and build networks with banks, brokers, chamber,
existing businesses, media, and others.
•
•
11'31 II. Business Retention & Growth
-reGoal: Retain and : row existin • industries
• Complete BRE Survey and distribute final results to council, EDA,
Industries and Chamber of Commerce.
• Consider publishing periodic (quarterly or bi-annual) newsletter
highlighting economic development activities, practices and issues.
X Create local industrial business publicity program - have quarterly
feature stories written on industrial firms.
# Utilize business round table approach to gauge business's attitude
IDtoward developing policies and projects.
• Distribute marketing materials to local industry and promote incentive
programs.
X Ads — Continue to feature local firms in City Business, Ventures, etc...
and explore local advertising opportunities.
X Utilize DTED's Manufacturer's Week to showcase existing firms.
• Create opportunities for interaction between business owners and
elected/appointed officials.
* Involve local industries in a major marketing event.
# Maintain database of industrial businesses.
• Consider continuing EDA Commitment to the Business Incubator
Project.
S
ti
y - III. Marketing Strategy
Goal: Develop an industrial marketing strategy to
develop business parks.
Establish a marketing plan committee comprised 5-7 of business
& civic leaders.
X Consider hiring a consultant to help facilitate the formation and
implementation of a marketing plan.
X Update and maintain marketing materials.
X Complete construction of economic development website.
X Utilize Energy City designation as a marketing tool.
i
S IV. (Re)Development on
E. Hwy 10 & in the CBD
Goal: Undertake activities that facilitate
(re)development on E. Hwy 10 & in the CBD.
Highway 10
X Develop criteria for designating redevelopment areas.
X Identify redevelopment/development areas.
X Develop database of east Highway 10 properties.
Consider locating additional sites for Elk River monument/entry
signage.
X Examine use of Redevelopment Financing Program along east
• Highway 10.
Central Business District (Downtown)
X Develop criteria for designating redevelopment areas.
X Identify redevelopment areas.
X Consider hiring a consultant to design a redevelopment plan for
downtown.
X Develop design guidelines for redevelopment in the CBD.
X Issue Request For Proposals for redevelopment sites in CBD.
X Further explore the concept of facade grants in cooperation with
local banks.
X Continue work on CBD action plan.
X Construct database of downtown businesses
X Continue marketing King and Main site for redevelopment
•
AK ice/
INF
CAdditional Action Steps
* Modify TIF policy to comply with changes in State law.
# Continue professional development of staff through
conferences, formal training programs, etc....
• Utilize GIS to manage data of industrial and commercial real
estate.
* Explore the development of a rail spur
x Inventory all available commercial/industrial land and buildings.
• X Utilize existing tools to encourage development : TIF, Micro
Loan, Tax Abatement, SCBDF, State, Initiative Foundation.
• Ensure Brown property remains available for industrial
development.
40
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City of Elk River
Feonomic
Development
Strategic
Adopted by City Council action on May 19, 1997
•
ELK
R
"A historic river community serving as a
regional center with a favorable location
near the Twin Cities metropolitan area "
Our mission is to actively participate in economic
4, development by utilizing available resources to
leverage viable and healthy investments in our
community. Such investments will create diverse job
opportunities as a result of a stable and growing
business and industrial base. We will strive to provide
quality services, maintain a favorable tax rate, supply
full-cycle housing options for our residents, and foster
an environment that will result in substantial growth of
our local economy.
•
• rgarnzational Ch
.F7_+,41,t11.:4v4 ks.�3.,d3:+. "dlnt.$. f1'
•
•
ECONOMIC DEVELOPMENT STRATEGIC PLAN
Elk River City Council
Strategic Planning Task Force
I
I I �.,.. I I I
HRA M Banks EDA Chamber " ? ' Utilities Local Business
•
Major issues and Goals
Industrial Base
• Attract new businesses to increase the
city's industrial base
a Business Retention and Growth
�
• Retain and grow the city's existing
business/industry
East Hwy. 10
Development/Redevelopment
• Redevelop the East Hwy. 10 corridor
Downtown Redevelopment
• Attract reinvestment in the Elk River Central
Business District
i
Priority # 1
Industrial Base
C Attract new businesses to increase the city's industrial
base
s Phase I - West Elk River Business Park
✓ Modify zoning north of County Road 30 in the West Business Park
from R1CtoBP
✓ Update/maintain an in entory of property owners in the West
Business Park
✓ Outline the parameter of a "Joint Development Agreement" for
11111 West Business Park p operty owners which will address
assessment issues, la d prices, and cooperative marketing of
properties to encoura e development of those properties
✓ Negotiate land prices in the West Business Park and research
funding options for potential city purchase
✓ City Council and EDA to determine whether to proceed with a Joint
Development Agreement or city purchase of property - show
financial options
✓ Enter into a Joint Development Agreement or complete acquisition
of the subject properties
✓ Complete conceptual platting of properties for use as a marketing
tool
✓ Modify current marketing and advertising program to include
additional properties
✓ Market the properties to industrial users
•
Incustria1 Base Continued
4 .. a,
•► Phase II - Industrial areas east along the newly proposed
transportation corridor and County Roads 12/13, east Highway
10, north Highway 169, and other parcels
I Accept a concept proposal for a new transportation corridor
between County Roads 12 and 13 proceeding south to connect
with Highway 10
I Identify appropriate industrial sites along this new transportation
corridor
✓ Identify appropriate industrial sites in other areas lying within the
• Urban Service Boundary
✓ Identify appropriate industrial sites lying outside the Urban Service
Boundary along east Highway 10
I Undertake rezoning of these industrial sites
I Establish a timetable for construction of the proposed
transportation corridor and other public improvements in this area
I Complete an inventory of property owners within the newly
identified industrial areas
✓ Outline the parameters of a "Joint Development Agreement" with
these property owners which will address assessment issues, land
prices, and cooperative marketing of properties to encourage
industrial development
I Negotiate land prices and research funding options for potential city
purchase
I City Council and EDA to determine whether to proceed with a Joint
Development Agreement or city purchase of properties
✓ Complete conceptual platting of properties for use as a marketing
tool
I Modify current marketing and advertising program to include these
• newly identified industrial areas
I Market the properties to industrial users
•
}
Industrial Base - Continued
Phase Ill - Other Industrial Areas - Gravel Mining Site
✓ Identify appropriate industrial sites/areas currently being mined
✓ Modify underlying land use if determined appropriate in anticipation
of future rezoning to Industrial or Business Park
✓ Work with property owners to establish a timetable for availability of
these industrial sites
✓ Work with property owners to encourage consistent and planned
availability of these industrial sites over the next 7-15 year period
•
industrial Base - Continued
-i,,kYr~:riis1.3`t 0 �4m0C.» .. x...».,
•► Programs and Incentives
✓ Support the use of Tax Increment Financing (TIF) as a tool to retain
and attract industrial businesses
✓ Modify the TIF policy to allow maximum flexibility and to guide the
city's appropriate use of this tool
✓ Support Sherburne County's effort to establish a revolving loan
fund, and other resources, for economic development
✓ Encourage Elk River Municipal Utilities to establish a dedicated
revolving loan fund for economic development and to provide a
• competitive incentive electric rate for qualified industrial businesses
✓ Modify the Micro Loan policy to allow maximum flexibility for use as
an incentive to encourage industrial business growth
1 Research opportunities for using the Internet to identify industrial
prospects
✓ Update the community profile and demographic information
annually
✓ Maintain an inventory of available buildings for manufacturing and
other industrial users
✓ Plan and coordinate a marketing event for industrial realtors and
brokers, developers, and prospects
✓ Establish a policy to guide the use of the city's development fund in
a manner which will support the growth of the city's industrial and
business base
✓ Work with local banks to establish a cooperative public/private
economic development financing program
•
•.
Priority 42
Business Retention and Growth
044V,. �„. �i'ieXia .! ."-.:... -'i� 'rLn° � : .e
Retain and Grow the City's Existing Business and
Industry
✓ Coordinate the efforts of"Joint Development Agreements" and/or
the city purchase of land in order to provide expansion
opportunities for EXISTING businesses
✓ Maintain consistent contact with existing businesses through the
use of letters and surveys
✓ Initiate a "Business Incubator" program to support the location of
• high tech and job intensive business growth within Elk River
✓ Use available financing tools to leverage private investment in
order to retain existing businesses and encourage growth
✓ Improve the perception and visibility of the Economic Development
department's business retention efforts through the use of the city
newsletter
✓ Work with the Department of Trade and Economic Development,
Small Business Administration, Central Minnesota Initiative Fund,
and other resources to increaseawareness of existing programs
which provide support for business expansion and growth
✓ Expand the Micro Loan program to assure that existing businesses
qualify as a high priority consideration
✓ Examine and research the implementation of new programs which
focus on business retention
✓ Work with the Sherburne County economic development office to
address the issue of labor force availability
•
•
Business Retention and Growth -
Continued
I. Upon completion, distribute the results of the central business
district Market Study so that it can be used to enhance the growth
of existing businesses
✓ Use the Energy City program as a marketing tool to support the
growth of energy related industry
✓ Develop a cooperative marketing plan with Energy City and
incorporate with the current marketing efforts to target energy
related business growth
• ✓ Coordinate the business retention survey efforts to establish a
baseline of current employment within Elk River's currently existing
energy related businesses
✓ Coordinate an event through Energy City with Energy Alley
member companies to market Elk River's growth potential in the
energy industry
Priority /13
East Hwy. 10
Development/Redevelopment
..,,..uai,.. ., rs,;, .:;:. �,;-.... .....v�r'rwt 'w',�`'�tta� k:,.. _ ..,.�.,. .a_..
Cs) Redevelop the East Highway 10 Corridor
✓ Establish the criteria for identification of redevelopment areas within
and outside the Urban Service Boundary along east Highway 10
✓ Identify and prioritize these east Highway 10 redevelopment areas
✓ Establish a plan to redevelop and market each of these prioritized
areas coordinating efforts with the proposed transportation corridor
connecting County Roads 12/13 and Highway 10
✓ Inventory property owners within these redevelopment areas and
• discuss possible "Joint Development Agreements", and other
cooperative efforts which could be undertaken to aid in
development of these areas
✓ Establish a long term design and land use plan which might include
establishing a uniform design theme for the overall area utilizing
some of the elements of the central business district Focus Study
(when completed)
•
•
Priority '/4
Downtown Redevelopment
3 Attract Reinvestment in the Elk River Central Business
District (CBD)
1► Overall CBD Design
✓ Identify the criteria and scope of a Focus Study of the physical
elements of the CBD, including elements of the riverwalk concept
✓ Bring in an outside consultant, if determined necessary, to
complete the Focus Study within the scope identified
✓ Examine criteria for additional HRA programs which may provide
• incentives to property owners to implement the results of such a
Focus Study i.e., signage improvement program, CBD marketing
program, partnerships with local banks, building rehabilitation
program
✓ Review the zoning and land use plan for the CBD as part of a
Focus Study to determine if changes are appropriate
•
i
Downtown Redevelopment
Continued
♦ Redevelopment Sites
✓ Outline the criteria which will be used to identify redevelopment
sites within the CBD
✓ Undertake the identification and prioritization of these
redevelopment sites
✓ Implement a redevelopment and marketing plan for each of the
prioritized sites
•
•
•
Downtown Redevelopment
Continued
7, 2,
Finance and Marketing
✓ Outline the criteria and scope of a Market Study which will,in part,
help to identify viable business opportunities for the CBD
✓ Bring in an outside consultant, if determined necessary, to
complete the Market Study within the scope identified
✓ Distribute the results of the Market Study to potential developers to
attract specific businesses to the CBD
✓ Support the use of available financing tools such as TIF to aid in
redevelopment of these identified sites
✓ Utilize the Internet to market and advertise the CBD to specific
retail and other business uses which are to be identified within the
Market Study
✓ Partner with financial institutions to establish programs, if
necessary and appropriate, to implement action steps based upon
results of the Focus Study and Market Study
✓ Create a positive method for ongoing communication with the
Chamber of Commerce, Rivers Edge Downtown Development
Corporation, and all CBD property owners regarding relevant
issues within the CBD
✓ Support all groups efforts to coordinate retail promotions within the
CBD
✓ Complete the redevelopment project at the corner of King Avenue
and Main Street
✓ Work with CBD businesses to address parking needs and issues
•