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5.0. EDSR 03-10-2003 Item # 5 City of Elk -�-1 River MEMORANDUM TO: Economic Development Authority FROM: Heidi Hall, Economic Development Assistant DATE: March I0, 2003 SUBJECT: Strategic Industrial Marketing Activities Update Attachments • Key Account Program 2002-2003 Schedule • Elk River Ad Featuring E & 0 Tool&Plastics,MN Real Estate Journal, Feb. 17, 2003 • Elk River Ad Featuring Metal Craft Machine & Engineering, MN Real Estate Journal, 410March 3, 2003 • Minnesota Technology Inc. Faces Another Death Threat, The Business Journal, Feb. 21, 2003 • Business Retention&Expansion 2003-2004 Schedule Report I. Product Offering Strategy Council Member Meetings with Industrial Property Owners At the February 11`''Joint City Council,Planning Commission, and EDA meeting,it was decided that City Council Members meet with each industrial property owner to gain a better understanding of each property owner's vision for their respective property. Mayor Klinzing met with Elk Path Business Center owner Stewart Wilson. Councilman Dan Tveite met with Elk River Business Park owner Rick Martens and Cascade Industrial Park owner Bill Christian. Gagne property owner, Richard Deziel, did not wish to meet with a Council Member and stated that he has shared and confirmed his vision for the property with staff. City Owned Industrial Park The Director of Economic Development has provided a separate report regarding this issue. I I. Competitive Strategy No new information was gathered in February. I I I. Key Account/Lead Generation Strategy Please see the attached key account schedule. I Strategic Industrial Marketing Activities Update March 10,2003 Page 2 of 3 • I V. Promotions & Advertising Strategy Inquiries Staff conducted two site visits with an injection mold prospect in late February. The company is seeking 5,000 square feet of lease space. Three Incubator prospects are expected to present to the Incubator Advisory Committee on April 7, 2003. Economic Development Web Page Road tonnage information has been added to each site details page of the Economic Development Web Page,located within the City's web site at avww.ci.elk-river.mn.us. 2003 Ad Campaign It is expected that new ad photos taken last week at Cymbet and Tescom will be used in future Elk River ads. So far this year, E & 0 Tool&Plastics and Metal Craft Machine& Engineering have been featured in Elk River ads (see attached ads). V. Public Relations Strategy Energy City Staff continues to work on the new Energy City brochure,web site, and display for the Environmental Learning Center. The Action Committee for Energy (ACE) has approved two brochure styles, a tri-fold style and a folder/insert style. The tri-fold brochures will be distributed at the Energy City booth during the March 30th Elk River Area Chamber of • Commerce Business Expo. MN Technology Partnership In February 2003, the EDA authorized staff to submit a grant inquiry to the Initiative Foundation to assist in the development of a pilot partnership project designed to recruit and retain strong manufacturing companies in the City of Elk River. Staff submitted the grant inquiry. The Initiative Foundation responded by asking for a full grant proposal for up to $5000 to implement a two-year program. It appears that Governor Pawlenty has proposed eliminating the MN Technology program (see attached article). At this time, it is too early to know if the program will be cut. Staff will proceed with the project until further notice. VI. Strategic Partnership Strategy Downtown Revitalization Project No new developments have occurred with the Downtown Revitalization Project. 2003 Money Breakfast Approximately 60 people attended the 3rd Annual Money Breakfast. The Director of Economic Development delivered a presentation on TIF,Tax Abatement, and Venture Capital finance resources. EDAM "Incubator Success Stories" Event Approximately 70 people attended the Economic Development Association of MN • (EDAM) "Incubator Success Stories" luncheon event that was held in late February at City Strategic Industrial Marketing Activities Update March 10,2003 Page 2 of 3 • Hall. The Mayor and Jeff Gongoll provided the welcome. The Director of Economic Development provided the history of the Incubator Program and Harlan Jacobs provided information on venture capital sources. Mark Jenson of Cymbet Corporation spoke as an Incubator Graduate and Joe Roushar of KnowledGenetica spoke as an Incubator Tenant. The Elk River Star News interviewed the speakers for a future story on the event. A videotape of the event will be available in mid-April and will be used as a marketing tool for the Incubator Program. VII. Business Retention Strategy Business Retention Program Business Retention and Expansion visits with M&M Precision Machining and Custom Cutter Grinding are scheduled in March (see attached schedule report). Staff will contact EDA members individually to schedule future meetings. • • � c a Z O co an-o et cl- a. d dd C z- rriO � � a � a a a ',-5. � a a i s n a n re rn a 5 "* we, Ct. ro n a v, r 1„r pi p 0 4 €s. `. • • • • • • • • • • • • • •• • • • � 4 e n ,(0 ,.'7' Z o (:;1 ,0-7', � n � 0 pd �, .6 n Z n , H p , 0 a �. r ', w OO o o 0 ,,' r�' N a. � Cl.0 n "- G Cr1 9 - � Z c I o w d CCD W a O G O Z n O z n m v, re `C I "t 0 a x5 R n. 5 § ,-C H 0 " ' a n ` \ `i' O ' p Us) < m U, ., b7 - , a co 0 aN � 9 a `Y .... X7C Z'Y' a n ~C NCD O <. ' o a NDCD Z ft m Crap z�� ) n C�� 4 'd - 4 o N O n • 4, . \ O ¢' ^ " N 0 t. 0 �' O I✓• O I' O O C a N 0 9 a.. a n a. N oo a \ (") O O � L L pv� 5 0 o a a oN W f'r 7 v, p n G 0 I✓ O� N N I✓ (� u 3O Z G C 1-71 0 FP 0 Z va a [17 z _td • C 00 o � n cDCP:? r, Z 0 O r-i .• A.Z M � d � W. 0 cn 0 1 xxn 0ro 'C� • ga ' O cro , • a CD on 7toz. td R 0 a n o 6N`C N \ . WO O \ (-7-7q W w © c Ztri zZzz oXO C.7 d ,- c4 yy o 4 E 5 1 n fl H pj d P o c b a H v p n N p [rY� III, 5n 7dN ©\ W N O W \ \ O O • k Ii } ± \ \ 5 \ / \ /\ / ET /= \ \Q g / c4 z \ / \ \ / ƒ / a \ \ PP / ; a : 4 Q 7 \ \ o z ƒ 5 3 3 g - \ z / / .( 2 z U \ \ \ E \ \ • V V ƒ / & o \ ; ® \ \ ƒ \ s lj C Z y \ . } § / / \ / \ \ \ j § \ / / H / P4 \ o j ;--g \ \ \ \ d \ \ \ \ & V , « aVV / / \ / ƒ / / j \ § cu / § / \ \ \ 44 § . ll Z F . \ / . ...uuii,.ao A ain, au i.iuuausal pain aL excitement,"Tschumper says. City's redevelopment is Grande Market Pilot Knob Road and 147th Street. The city has given preliminary develop Place, a project under construction by Kelley says one,S-acre parcel remains ment approval for a $180 million, 600 George Sherman of Minneapolis based in the 50 acrepark. room hotel with a learning center and com Sherman Associates Inc. and Burnsville Questar,a school testing evaluation munity arts facility as part of the Heartof resident Ron Achterkirch. company, has a 55,000 square foot the City redevelopment,Tschumper says. The$20 million,mixed-use project will building under construction in the Though designs are preliminary, she says include a four-story building consisting of park.Qualtech,which performs main e complex could include four restaurants, 113 rental apartments and 15,000 square frame computer reconfigurations,has 1,200 seat ballroom, an indoor water feet of first floor retail and restaurant a purchase agreement for a parcel and t of park and office and retail space.The devel- space. An adjacent three-story, 24,000 plans to build a 25,000 to 30,000 nto oper is Scottsdale, Ariz.-based Spirit square foot building will house retail and square foot facility. ject Mountain. restaurants on the first floor, a culinary In addition,Manley Development tail The hotel complex would be three to school on the second floor and office space Co.plans to build Town Office Park, ind five stories high and built on 6 acres.Fund on the third floor.Both buildings are slat which will contain 80,000 square feet ing for the project, Tschumper says, is ed to open in fall. The project also will of, condo style, owner occupied ),—,,,b; coming out of Europe. include underground parking and a court- T° ourtoffice/warehouse/fabricationo space. "We have a purchase agreement with yard. The developers have letters of intent ans them on the land," Tschumper says. `By The developers describe the commercial for about half the,space,Kelley says. Lich Oct. 1, they need a final development component of Grande Market Place as a Jessica Griffith is a st.Paul-based freelance agreement. So far, everything shows it's a "European-style village of shops"that will writer. t of go BURNSVILLE to page 16 The centerpiece of the Heart of the a ,:-.''' i‘'4' - i:,,,,,z2-, , ihr , , ,, i.,,,i,:.,,„,_ _, ,r,::,,,,,,,,,_,,,4., ,,,,,,,v,,,,„,,,,E,., .:_, i iu ' : ..fes ant HAW CONSTRUCTION ,r f�. $ F cx� ', ..0 fir: 3 n RY r.,, X . `mss [ � m a ,� ..c3'S *xz KF Ste ? -aa Fn7''4� ) 'YRu' �'^�"' `rte � ' '� ,�' J ,,.s` s gA,1 e,z'- , b , r z Labor gains. "We have a solid labor pool in the Elk River area, so we can train and retain good employees. E & 0 has much lower turnover rates t Buildout +� Construction Services than others in our industry. That puts us ahead." Location, location, location. "E & 0 is mostly a regional company. Elk River is close to major highways, which gives us access to our customer base." --Jig Ctisuwell, CFO and co-owner; E d 0 "tool and Plastics, Inc. "Jack" N. Shaw - President s B. Swedenborg - Director/ CFO. For more information about business opportunities in Elk River, call 2orporate Way (763) 441-7420, or visit us on the Web at wav wci.elk-rivet:rn.us. Prairie, MN 55344 937- 14 • Fax (952) 934-9433 ~y: naw ruct.com _ ver The Liclet Industrial Flub nl'the Northwest Metres re,6. /7, &O&& in A25,7- lstacle ■ vvvv I rrv2.ICI'7 S1DIRECTORY 8 BUYERS BE AWARE CLASSIFIEDS 27 1 Understanding Superfund liability The Minnesota real Estate Journal (ISSN 08932255)is published biweekly for$85 per year by Law Bulletin Publishing Company,9555 James ta THE VALUE OF PREVENTION Ave s.snite 240,Bloomington,MN 55431. Peri 1 O odicals postage paid at Minneapolis,MN. POST- Tra cki n g preventative maintenance MASTER Send address changes to Minnesota Real J Estate Journal,9555 James Ave S.Suite 240,Bloom- ington,MN 55431. Lansing Macfarland,Jr.chair- TO PROTECT AND SERVE man;Sandy Macfarland,eEO;andBrewsterMac- " farland,president Single copies$3.00. Back issues Tenants sacrifice convenience for safety $4.00. Subscriptions are son-refundable. FOCUS I own e rs/Investors ©2003 Law Bulletin Publishing Co.No part of this publication maybe reproduced without the writ- ten permission of the publisher. 1 �) $100 BILLION NICHE OPENS UP REAL ESTATE L Medical office buildings gain attention comm., eations GROUP A tlivision of Law Bulletin Publishing Company se , :,,,„,„...e.,„, „„t.„,,,r,,,,,.„,,„„14.1.4.,,,,,,._1„„s... , _ „:7,......,,z,,....,. . _ ..„...,:,,..„1:0„,„.„7„,,, . ,,,,,:c ,_,.,„,„,„_„:„:".„,,,,,, ,,,.•___, ..„ _ _, ,,,, „ •• ,\„__,, ., , ;,:.1 4 • „ ,,,,. .. „..,,, ,, .,, ,i „, ,, . .., „ ' . , . , ..,‘„„ , „,,, „, , , , . „ , „.3„,,..,,,,s...;4„_:„. , . _., L._ „ ,,,,„_.,„ . „ ., ,.. b x ,� '3 mus,, `P� % *”:s,� : r I lam : ',.. r !V ria 4 >Ns r c as ;4 maxi k ” -4:e A r r. f"4 l ¢&..trli ° �a��� � ��",�”. c #as s '11,2 fit' t e eek 4.1' ¢( . 4. a s � � Solid employee base. "Tile people we hire from the area are well framed. x There' a lot of competition in the precision manufacturing indust in E`' Elk River. Good competition breeds good employees.” iq Strong past. Stronger future. "We started Metal Craft in Elk River in -” sT ;44 1978. We first built in 1982.We expanded in 1988 and 1999. We plan ro ,, grow, and it will be in Elk River.” Jack Mowry president and founder, Mehl Craft Machine and Engineering For anta3ar.informatao�about Bes s o . . i� ; call • (763} tI 7 ,or�ssit as©a t Webat .ciel�lz . s tis V ' ,: �� x � ��� � �� � 4',.-401-z: �� Elk �~. � � e � h River 4 ,%r°l., iy1✓ a�:irazal? n!Lite.l tiro cs lUlcW N �r.� 3, 617a°3 n'l�PET i THE BUSINESS JOURNAL I twincrties.bizjournals.com 43 A adOP raise budget that doesn't raise taxes, but acknowledge health costs will rise g 1 businesses by eroding the historic property- National Association of Industrial and Office 1 M©RE tax reforms of 2001,business leaders said.The Properties. of How Gov Tim Pawlenty plans to solve the Pawlenty administration has pledged not to $4„2 billion 2004.05 budgetcnsis increase the statewide business property tax, Nigher education Na new tax increases, but cities might try to recoup lost revenue by Another concern of business leaders is that Uses about$1billion*tobaccoendowmmntfunds raising their own property taxes. the cuts might hurt the University of re 1 'Proposes two-year public•employee pay freeze The administration is aware of such a possi- Minnesota,which is considered a key element in ' Total projected spending would be reducedfrom bility and wants to cap the levies of local gov- in creating a vibrant economy through tech- i $3098`billion to$28,12 billion.Reductions would emments.Pawlenty also supports reverse ref- nology transfers and research. ie l; include: • • erendums,which would give citizens the abiliThe universitywould lose 15 percent under the Health and Human Services,$810 million. ty to pass a referendum that repeals property governor's proposal,which calls for$1.08 billion a I Local aid;$638 million tax increases. in state funding.That translates into a reduction at l Higher education,$358 million Bill Blazar of the Minnesota Chamber of of about 5 percent of the U's total revenue. er `= Environment and agriculture,$95.7 million Commerce, said reverse referendums could A tuition increase for both Minnesota State nt Economic Development,$65.1 million do more to stop increases than the levy caps. Colleges and Universities and the University nt # Transportation,$25.9.million • "We know that levy limits have not been an of Minnesota to make up for the cuts would be it i Criminal Justice,$138 million effective tool in the past,' because of the many limited to a maximum of about 15 percent,the loopholes and exceptions theycontain. governor said. n �: Otherz$69 million P P t Total reductions;$2.83 billion • The issue is one of concern to the real-estate A favorable aspect of Pawlenty's plan, its = Restores budget reserves to$500 million by 2005 industry, which fought hard to win the 2001 Benson said, is a shift to subsidize students ie Total spending would still increase about$1 bit- tax reductions."Real-estate professionals real- rather than institutions by dedicating$60 mil- of lion,or 3,8 percent above the 2003'04 budget ize that there is a battle ahead of us to keep the lion to financial aid. ie a - taxes where they are today,' said Jean Kane, es president of the Minnesota Chapter of the smith@bitjoumals.can 1(612)288-2107 r- "devastating." 4 re "The public hospitals would all find it 3e sossible to recruit with a wage freeze," Minnesota Technology Inc. faces another death threat i- said. "We would start to hemorrhage [d . ►pie leaving for better opportunities else- For the second consecutive year,Minnesota Technology Inc.has found itself on the governor's where." chopping block. Ys Business leaders said the wage freeze was The nonprofit organization,which helps businesses develop,use and commercialize technology,would is appropriate since it mirrors private sector see the$5.3 million it receives from Minnesota axed under Gov.Tim Pawlenty's new budget plan.Such a t- cost-cutting measures. cut would essentially shut down Minnesota Technology,which has a total budget of about$8.3 million,offi ie Nonprofits and the arts are the other big dais said. ie losers.Among cuts to nonprofits are a 35 per- "There's no way we can exist without the state's involvement;said Lynn Buschman,Minnesota ss cent decrease in state funding for Minnesota Technology's director of communications.She noted that,though Pawlenty said that Minnesota ie Public Radio and a 25 percent cut in public tel- Technology has other funding sources,the$2 million MTI receives from the federal government is cor it evision funding. tingent on the group getting at least$4 million from Minnesota. u- Marcia Avner, public policy director of the Still,Minnesota Technology has been in this situation before and survived.Last year,Gov.Jesse Minnesota Council of Nonprofits, said the Ventura tried to eliminate the group's funding,but all but about 11 percent(or$750,000)was or cuts will be very significant for nonprofits and restored by the Legislature. 3- some will have to close. Buschman said that past support from lawmakers is a sign of hope this year."We know the valuE v- we bring to small and medium-sized businesses in Minnesota;she said.Minnesota Technology sail rt Possible property tax hikes that its work with businesses results in$13.2 million in new sales and income-tax revenue for the ;h Pawlenty proposes a 22 percent cut in local state annually–about twice the state's investment ht aid to cities and counties over the next two As a result of last year's cuts,Minnesota Technology recently began an effort to shift itself to a fee- s- years.These reductions in local government based business model,charging businesses for services it once gave away.That could eventually in aid-a program designed to equalize revenue help fund the organization independently,but Buschman said that effort is still in the pilot phase. )e among cities — could boomerang back on BY MARK REILLY I SENIOR REPORTER iai n strives to get more fans in the Metrodome earlier in the season than in.. 2002 • g ticket holders. paper and convincing them to go to the match the success of the"Get To Know'Em' The new campaign is an evolution of the Metrodome. campaign. "Get To "Know 'Em" campaign that "You can't catch aTorii Hunter home run on According to research conducted by team atneapolis-based Hunt Adkins created for your couch, and there are very few places officials in August, 85 percent of the general y 1� team in 2001. That campaign aimed to where you can throw your peanuts on the population said they had heard or seen a ie introduce fans to a number of new players, floor,"O'Brien said."People coming out to the Twins advertisement. Approximately one- such as.shortstop Cristian Guzman and left ballpark will have a better experience if the third of those people were able to recall the to fielder Jacque Jones.Using newspapers,radio volume is higher." Twins "Get To Know 'Em" slogan. 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