5.1. EDSR 05-12-2003 ITEM 1 5.1.
•
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority 0-\ .FROM: Heidi Hall, Economic Development Assistant
DATE: May 12, 2003
SUBJECT: Consider Authorizing a Matching Commitment for Proposed
Partnership with MN Technology, Inc.
Attachments
• MN Technology List of Services
• MN Technology Services Cost Sheet Examples
• Program Draft Criteria&Application
• • Grant Application Sheet and Proposal Narrative
Issue
In February, staff presented the EDA with a concept for a pilot partnership program with
MN Technology, Inc. (MTI) designed to recruit and retain strong manufacturing companies
within the City of Elk River by providing them with technical training services.
The program will be marketed to prospective and existing Elk River manufacturers (see
attached draft program criteria and application). Since manufacturers have different needs,
the type(s) of technical training services provided to them by MTI will vary. MTI's services
range in price from $150-$2,000. Please see the attached MTI list of services and cost sheet
examples.
The EDA authorized staff to submit an application to the Initiative Foundation for a
matching grant request of up to $5,000 for the program. A Grant Inquiry Form (preliminary
grant application) for the program has been approved by the Initiative Foundation.
Staff will submit the formal grant request upon EDA approval of the attached grant
application and proposal narrative. Staff anticipates a response on the grant award prior to
the June EDA meeting.
•
Recommendation
• Staff recommends that the EDA consider committing up to $5,000 of the EDA's
Advertising/Marketing budget to implement a two-year partnership program with MN
Technology.
III
•
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Minnesota Technology, Inc. 501 erdtCl5640rive
Brainerd,MN 56401
PHONE(218)855-8243
FAX(218)855-8141
OWWW.MINNESOTATECHNOLOGY.ORG
Minnesota Technology, Inc. has as its mission to assist industry in
their preparation to apply, develop and commercialize technology.
Our efforts to assist companies reside primarily in the
following areas.
Technology Assistance:
> Technology Review
> Technology Solution
> Product Development Planning
> Product Development Readiness Assessment
Business Management Systems
❖ Strategy Development
> Benchmarking
> Strategic Planning Assessment
❖ Marketing Systems
> Industrial Marketing Assessment
> Top Prospects
• > Company Profiles
> Customer Mini-profile
❖ Finance Systems
> Financial Statement Assessment
> Financial Management Training
> Financial Management and Budget Assistance
> Business Valuation Training
Lean Manufacturing Initiatives
> Lean - 101 Principles of Lean Manufacturing
> Value Stream Mapping
> Production/operations Assessment
> Software Assessment and Selections
> Supplier Qualification Systems
e-Business
> Internet Opportunity Assistance
> Internet Readiness Assessment
> Internet Strategy Development
> Website Assessments
> Internet Vendor Mediation
• Updated: February 3, 2003-J.A. Vreeland
a NIST Network
MEP Affiliate
MOORHEAD • REDWOOD FALLS ROCHESTER • ST CLOUD • TWIN CITIES • VIRGINIA
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DRAFT
city of
Elk
River
The Light Industrial Hub of the Northwest Metro
Economic Development
Technology Assistance Program
Criteria & Application
June 2003
City of Elk River Economic Development Authority
13065 Orono Parkway
Elk River,MN 55330
• (763) 441-7420
• ELK RIVER ECONOMIC DEVELOPMENT
TECHNOLOGY ASSISTANCE PROGRAM
CRITERIA
June 2003 D IPd
A IT
I. PURPOSE
The Economic Development Authority for the City of Elk River (EDA) recognizes the need
and importance to retain and recruit industrial companies within the City of Elk River. The
purpose of the Technology Assistance Program is to provide a technical assistance incentive
to qualifying existing and prospective Elk River manufacturers to encourage company
efficiency and productivity.
II. CRITERIA
The following criteria will be used to determine the eligibility of applicants for the
Technology Assistance Program:
A. Retail/service and start up businesses will not be considered.
B. Companies must be involved in product manufacturing/assembly or be high
technology-service related.
C. Companies demonstrate growth potential.
D. P
Companies must report the following impact(s) resulting from the
Technology Assistance Program:
• Sales increase
• Inventory cost savings
• Labor cost savings
• Material cost savings
• Other cost savings
• Capital investments
• Other investments
• Number of jobs created
• Number of jobs retained
E. Companies must commit to relocating and/or expanding in the City of Elk
River via quality job creation/retention, new equipment purchase and/or new
construction.
• ELK RIVER ECONOMIC DEVELOPMENT
TECHNOLOGY ASSISTANCE PROGRAM
APPLICATION FORM
.11111A11=7
Name of Business:
Name of Principal:
Address: Phone:
Fax: E-mail:
Business is primarily involved in: Research and Development ❑
Product Manufacturing/Assembly ❑
Other ❑
Principal product(s):
Number of Years in Operation:
• Current Number of Employees:
Most Recent Annual Sales:
Technology Assistance Program Service Requested:
Program Cost:
Objective:
Commitment for Growth in Elk River
Expected Jobs Created and/or Retained:
Expected Equipment Purchase:
New Construction/Remodel/or Expansion Time Frame:
Other:
Signature:
• Printed name:
Company name:
Date:
Minnesota Common Grant Application Form
Grant Application Cover Sheet
You may reproduce this form on your computer
10Date of application: 5-13-03
ORGANIZATION INFORMATION
Economic Development Authority (EDA) for the City of Elk River
Name of organization Legal name, if different
13065 Orono Parkway Elk River, MN 55330 41-1899226
Address City, State, Zip Employer Identification Number(EIN)
763-441-7420 763-441-7425 www.ci.elk-river.mn.us
Phone Fax Web site
pklaers@ci.elk-
Pat Klaers City Administrator 763-441-4907 river.mn.us
Name of top paid staff Title Phone E-mail
Economic Development hhall@ci.elk-
Heidi Hall Assistant 763-241-5526 river.mn.us
Name of contact person regarding this Title Phone E-mail
application
Is your organization an IRS 501(c)3 not-for-profit? Yes No
If no, is your organization a public agency/unit of government? X Yes No
If no, check with funder for details on using fiscal agents, and list name and address of fiscal
• agent:
Fiscal agent's EIN number
PROPOSAL INFORMATION
Please give a 2-3 sentence summary of request:
The Elk River EDA and MN Technology (MTI)wish to create a pilot partnership project designed to
improve the city's industrial recruitment and retention efforts by providing existing and prospective Elk
River manufacturers the skills for workforce productivity and profitability. The requested grant from the
Initiative Foundation, along with matching funds from the EDA, will be used to pay MTI for technical
training provided to qualifying existing and prospective Elk River manufacturers. The technical training
programs of MTI range in price from $150-$2,000.
Population served: Existing and prospective Elk Geographic area served: The City of Elk River
River manufacturers
Funds are being requested for(check one) Note: Please be sure funder provides the type of support you
are requesting.
General operating support Start-up costs Capital
X Project/program support Technical Other (list)
assistance
•
12/2000
Minnesota Common Grant Application Form
Project dates (if applicable): Financing Fiscal year end: December 31, 2003
• commitments by
June 2003 and
program
communications &
marketing by June-
July 2003
BUDGET
$ 5,000 (match for two-year pilot
Dollar amount requested: program)
Total annual organization budget: $ 200,000
Total project budget (for support other than general operating): $ 10,000
AUTHORIZATION
Name and title of top paid staff or board chair: Pat Klaers, City Administrator
Signature f?"-f-
•
•
•
12/2000
tot.
k
River
13065 Orono Parkway
Elk River,MN 55330
Proposal Narrative
I. Organization Information
A. History of City of Elk River and the Economic Development Authority (EDA)
The City of Elk River was originally incorporated in 1880 and consolidated with the Township of
Elk River in 1978. The EDA was established in October of 1987 pursuant to Minnesota Statutes.
B. Mission and goals of the Elk River EDA
The EDA's 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.
C. Current activities of the EDA (Year 2002 in Review)
• The Economic Development Department responded to a total of 48 industrial related inquiries in
• 2002.
• Advertisements were place in the MN Real Estate Journal,Twin Cities Business Monthly, and MN
Real Estate Journal's Leasing Guide.
• The City of Elk River participated as a co-sponsor of the 2"d Annual MN Real Estate Journal Site
Selection &Economic Development conference in October. The Director of Economic
Development participated on a panel discussion highlighting the City's site selection and economic
development services. The department also participated with a booth at the MREJ's North by
Northwest conference that featured development opportunities in the northwest metro.
• In October, the City of Elk River participated with the MN Department of Trade &Economic
Development in the recognition of MN Manufacturing&Technology Month. In addition, a full-
page advertisement was featured in the Elk River Star News thanking the list of local manufacturers
for their contributions to the community. The Economic Development booth was also rotated in
four local banks.
• In May Duckor&Associates was hired to complete an assessment of the first 2-1 years of
implementation of the 2000 Strategic Industrial Marketing Plan, and also to provide an update for
the next three-year implementation plan.
• In early 2002 the City implemented a new format to the City's website located at www.ci.elk-
river.mn.us.
•
Phone:763.441.7420
Fax:763.441.7425 Page 1 of 4
Proposal Narrative
www.ci.elk-rivecmn.us
•
• The Tax Rebate Financing Policy and Economic Development Micro Loan Program Guidelines
were refined.
• The Business Subsidy Policy was adopted and the EDA chose to participate in the MN Community
Capital Fund.
• In the spring the Economic Development Assistant completed visits to 20 local manufacturers out
of the total 37.
• The Incubator sub-lease with Vertical Publishing was renewed upon the company's hiring of a new
CEO. In April the EDA welcomed a new incubator tenant, KnowledGenetica Corporation. In the
summer, Incubator tenant Bixby Energy Systems graduated into market-rate space in Rogers, MN.
In August, staff proposed a new location of the incubator in conjunction with an expansion
proposal for incubator graduate, Cymbet Corporation. In January 2003 the EDA renewed a two-
year lease extension of the current incubator facility.
D. The EDA's relationship and role with other organizations working with similar missions
The EDA works with several organizations with a similar mission,including:
• Sherburne County Economic Development Association (SCEDA)
• MN Dept. of Trade & Economic Development (DTED)
• Economic Development Association of MN (EDAM)
• MN Technology, Inc. (MTI)
ill The EDA works to support local economic development. The other organizations support economic
development on a regional and statewide level.
E. Board members, Staff, and Volunteers
Seven members sit on the EDA board (see enclosed list of board members). There are two full-time
Economic Development Department staff members: The Director of Economic Development,
Catherine Mehelich and the Economic Development Assistant, Heidi Hall (see enclosed staff
descriptions). The City of Elk River as a whole has 94 full-time and 17 part-time paid staff. There
are 35 paid on-call firefighters. There are also a number of Recreation,Parks,Arena, and Police
Reserve employees (employee counts vary depending on the time of year). Approximately 55 people
volunteer their time to the City of Elk River.
I I. Purpose of Grant
B. All Other Proposal Types
1. Situation
a. Need
The proposal addresses the need to recruit and retain strong manufacturing companies in the City of
Elk River by providing a technical assistance incentive. This technical assistance strengthens the
local economy by assisting local manufacturers to be more efficient and productive.
S
Page 2 of 4
Proposal Narrative
•
Approximately 38 manufacturing companies are located within the City of Elk River (see enclosed
Commerce & Industrial fact sheet) and over 1,300 jobs are provided by these manufacturers. Elk
River is marketing to build on our existing industrial sectors while working to recruit a diverse
industrial base.
b. How Need Was Determined
The above need was determined by the city's Economic Development staff through working with
prospective and existing Elk River manufacturing companies. In order to recruit and retain
manufacturing companies,incentives are important due to the competitive nature of industrial
development in the area. The EDA decided in February of 2003 (see enclosed EDA Minutes) that a
technical assistance incentive was important to the mission and goals of the EDA.
2. Activities
a. Goal
To provide assistance to prospective and existing Elk River manufacturers to obtain technical
training in order to enhance the creation of diverse job opportunities as a result of a stable and
growing business and industrial base.
b. Objectives
1111 The Elk River EDA wishes to partner with MN Technology (MTI) to provide technical training to
Elk River manufacturers (see enclosed MTI contact information and list of services). Since fees for
MTI's services range from $150 to $2,000 and each manufacturer has different needs, the project
objective must reflect that range. The project objective will be achieved by providing at least five
technical training services (training carrying a fee of$2,000) to Elk River manufacturers. At most,
the objective will be to provide 66 Elk River manufacturers with technical training services (training
carrying a fee of$150).
c. Activities to Fund
The Initiative Foundation funds, along with matching funds from the EDA,will be used to pay MTI
for technical training provided to qualifying Elk River manufacturers. Alternative consultative
resources similar to MTI include: Manufacturers Affiance and area colleges for customized training.
d. Who Will Implement the Activities?
MTI manufacturing specialists will provide the training.
e. Time frame
Assuming financial commitments for the project are secured by June 2003,program
communications and marketing will begin in June July 2003 for program implementation over a
two-year pilot program period.
•
Page 3 of 4
Proposal Narrative
•
f. Community Impact
The project will utilize the services provided by MTI to leverage viable and healthy Elk River
manufacturers. Elk River manufacturers will continue to create diverse job opportunities as a result
of a stable and growing business and industrial base.
g. Long-term Funding Strategies
The proposed project is a two-year pilot program. Assuming the program is successful, city staff
will recommend that the EDA fund the program beyond two-years.
Ill. Evaluation
A. Criteria for Success
As a result of the program, the EDA hopes to achieve the following:
• Improved industrial recruitment and business retention
• Improved workforce productivity and profitability for Elk River manufacturers
B. How Will the Program Be Measured?
City staff and MTI will survey new and existing companies who receive technical assistance offered through
the program. The following expected impacts of the program will be measured by MTI's survey:
• Sales increase
• Inventory cost savings
• Labor cost savings
• Material cost savings
• Other cost savings
• Capital investments
• Other investments
• Number of jobs created
• Number of jobs retained
Results will be provided to the Initiative Foundation upon request.
C. Who Will Evaluate the Program?
City staff and MTI will evaluate the program based on the survey results.
D. What Will Be Done With the Results?
The results will be used to determine whether the project will become a permanent program of the Elk
River EDA. Another benefit will be that MTI could pilot this program in other communities.
i
Page 4 of 4
Proposal Narrative