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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 • We 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 ..{dy4� _ , , y is • lop Prospects Find the business customers you want Take the frustration out of finding new customers. Simply provide us with some �, �� �,: customer information so that we can develop a customer analysis to help you choose the k` type of new customers you want. Then well develop and deliver a customized list of new {,,•. prospects. Or, if you already know the profile of a customer you'd like to have, we'll provide you with a list of 100 i deal new top prospects. IP Advantages • Analyze current customers }i^::{X K{% YY .......................................................... f Y { .. • Identify and target new customers or markets %{XX XX}{hX}{ XXxt k x>{ xX }{x ..xcX},M✓.{} {Y.xX.{X.{X}:Xl..{} ..x..t Y..{f...X...if .{h }'{X}"XX%.� S.XY.{Y.—s.p k{1 ,..YkX}.,...„,%.:::„ x}Xh y ! # Initial Preparation :?,),-,,i. t x". , 4. fi ' • Provide a customer list $ { . �,q Cost XY S} x x x{ xs x.{ • Customer analysis and Top 100 Prospects list {her: $150 + 101 and up per prospect X{X> ..{X.•:x F:{kx • Top 100 Prospects list only $75 + 101 and up per prospect . 9v '� i.vsLL la a Customer Mini - Profiles Make your strategy and marketing efforts more effective w..,„,•,-,,-,...'2,..-••-•,..-„--..-;•, Improving your knowledge of your customers helps you drive sales, marketing, product , Y • `sf development and business strategy. :. Minneso,i-sk.,-'s.. .?$",4,:,k4,..."•,''....'..."'•,-,..''.' ta Technolo Inc. ex erts will hell) ou et more familiar with our customers b 14 ,{% � 9Y� P P Y 9 Y Y 'x�} y �° providing you with detailed information on sales, number of employees, markets served and more. • Ad van tag es 9 • Enrich your customer database • Develop customer-based strategies and products SYl {x x � x r , rx iXx:S X'.XS SYXV { X S XS.:".t."'';'''''...:',4-1.',...7v Y { {aS.SS XhXJ4.f7 "t'! ?7.7� J�7 d YZ Sh D Sh 1 V l Xxx X.CX h"ti'{Y:S}.x Xf. :x CX {h to S''S',Sx{XXX X • Increase sales and marketing effectiveness Y � � ,tiX CS App'4:§t4V41#,A'4,*:',.t, .0 .g},. X Y Initial Preparation u .xxx . $ xxx'y 4 • Provide a customer list {x{ k X Cost {� VXY.S r.iCxxh -{xxx t ^t • $75 + 35Q per customer mini-profile x w} • Market Anatysis Discover the demand for your product or technology • New products are exciting to think about,.but will they sell? L • Reduce the risk in product or technology development by basing your decisions on good Y information. Through research and interviews, Minnesota Technology, Inc. experts will • assess the market, identify users and provide samples of potential customers. F � 4 b M 14 A • ,• 9 1 o n.4; •fii • Advantages • Assess market demand and outlook • Highlight key competitors and their • products .............. Y KSS 2. :i ':} . . .:t`v{ • Identify primary end users ?{ . • Tap into marketing and information Y;YY } resources r' { Y1 t • yXKr - gyp} Initial Preparation �Kk%} },KXx • Describe your product or technology and what you already know about the market {X:X Cost • $1,500 • ..aSoftware Resource List Using the right software can make a dramatic difference in your business w W H ' -f.....,...::,....,.,........,-.-.7.-...,-.......-:.k.V °` .:,. fl'. If you're looking for new software - but don't know what to buy - this service is for you. . �2S, r ;r Minnesota Technology, Inc. experts will evaluate your company's business processes and , future software needs. Then, based on where you want your company to be in the next five years, they will provide you with a list of the best packages that will help you `;„ ;: achieve your goals. We won't try to sell you a specific software package, but we will help you make your • ' business run better. Advantages • Evaluates current business needs and software solutions • Creates list of potential software packages • Speed software selection Initial Preparation • Discuss your current and future business needs prior to beginning this process Cost • $495 0 .., _ ,,,, , { 41) Software Assessm. . . . ent an d SeIection Identify the tools you need to run your business more %. . • .0effectively tot\t... ... .,....,. . Save thousands of dollars, reduce stress and save time by i•dentifying the ng ht software • for your business. a, M,, Minnesota Technology, Inc. experts evaluate your company's entire software needs, as well as the software you are currently using. Then they evaluate top packages on the market based on your individual needs and give you an unbiased report on the best software to help your company run better. IP Advantages • Evaluates the most up-to-date packages on the market today Develops an unbiased list of software packages Y XKYxS �h sXx XXXxS %"si %Xy:...........................-•••,': xX Y r • >x%h�,hXs Xa r !X t X3 Xa X xx,s% tx x x SK^S 3 }_ • 'G k{+'j<uY xw xx x h'i i'Y AX N� d Sy:tll M ix �Y% Y �K• . sr,:,!,...:::: that fits your individual needs v..rt.met+,,,Itibt.,•:'....•.-. • Speeds software selection, implementation X ;� . • X xx sxX k X'y Y .tF Initial Preparation ht } SXht • Discuss your current and future software needs 'xx YX prior to beginning this process sxrxz•" xexx Cost ....-N,,,,,, „our • $1,800 • . ,. SurveyQualificationSupplier. Quality is critical Show your customers you take it seriously £xx� , ` Minnesota Technology, Inc. experts will visit your company to interview managers and ilt�h�.�'S.c'...aa��'' yy '7�]"� q...‘,14;:-...."..::'..-.-..-.rV � assess your quality processes and systems. During the interviews, you will learn � f�x techniques to create an efficient and cost-effective Quality Management System. The j , = Supplier Qualification Survey can also be used as a tool to help you survey the quality " . systems of your suppliers. h Be proactive and impress your customers with this professional, thorough assessment of your quality system. Aik gli Advantages • Assess your company's quality performance • Gain customer recognition of your Quality th% x % { r % tviw*.i..t ._,._..,. ::. k .{Y'{X XX}X X{S% k ,eG ! +S Management System % �� { Y x{k{XY t{ �`q •{`+[5,{Y Y.:Ch Yh't�Y tY^.{X Y{ torytze • Identify, prioritize quality projects KX a �� • Reduce costs of assessing supplier's quality systems YYY{ Initial Preparation XY 4a ` iy:, �$ ' t< %XX xX eh aX • Schedule interviews u X hxs.{ • Collect quality documents needed for the interview %R ..nXxr., • Download a copy for the SQS or request a disk version Cost • $400 • a r �� 1 ,, , h 0 Web Site Ana1ysis Make your site the best it can be k....,:':':".:7':',7".`:.%,:::...,•,'.."-.1^.c7. The Web Site Analysis, designed for companies with existing sites, examines your site's s >; �' search engine performance, structure, graphics, content and ease of use. The Analysis also x � evaluates clarity and consistency and offers suggestions for improvements �} # '' Minnesota Technology, Inca experts wilt report on key areas, suggest improvements and address how to implement changes. a ey. a"st;^`; 0 Advantages • Improve traffic, qualified leads, competitive standing and visitor experience %%" 4� �' Yx-,,..:1,...4.-,:4,..i. y` Y %SYS%}Y f7 Y ' tYA 4 i Sh A ,...,,,..,q,,,,,,-- Y"•.{�{ Y YY Y YhY h,{Yx......3...,:-:-.....,%::i..,....- Y hY., } Y h':Cx 4x YY 4x hYY{Yx]Y YY% h{Y{? Y ,M2•� K` • Assure a consistent and positive message xYs '"; • Ensure that customers quickly get the information xx {} ;�� n� ..,..r,. .. ii.,% k the need .,,. � ,fi;. ,.���.a��x., y ; ,. YY :x. • Protect domain names xx :{xY},} Y Initial Preparation x%xY Yx Y xxx }:X}Y7 • Provide domain name or Web site addressY? Cost • $400 • ''" '7 Internet Strategy Development Develop a strategy to launch or improve your Web site u H Strategically position your site to be successful. <$ � Y Minnesota Technology, Inc. e-Business experts work with you to strategically position � � analysis will include: Gyour site to be more effective. Your anal# r Y • Web site purpose and audience j N : • Competitive analysis • Content summary • Suggestions on how to structure your site for optimal search performance and usability Advantages • Differentiate your company from your competition • Position your company in a radically changing market • Explore diverse partnerships possible through the Internet • Have a clear vision of your Internet presence • Provide necessary documentation for your Web developer Initial Preparation • Schedule uninterrupted time with key personnel • Be prepared to frankly and confidentially share customer, competitor and financial information • Provide strategic plan, mission, vision and value statements Cost • $1,000 • --1-; ;''''':''1.:11''t ''- .. ., , ... , , Aw up Competitive Internet Intelligence Beat the competition through effective Internet marketing ___, s- '. , Compare your site's search performance, usability, marketing message and function t Learn more about your competitors and customers. 3 x } Minnesota Technology, Inc. e-Business experts will compare your site to selected C,: . 1.„....,,...$ .,. .„.,......:......k � � h # fx li competitor sites and recommend strategic investments to maintain your market ' � 1, 3 advantage. �` t CC , • Advantages • Discover how your site compares to competitors • Locate competitors that have a strong Internet h ,, ,x x X!Y f {ti% x i.;.‘,„4„.1..r,r,:4t,s.1:_;t4.t..:..,.t....*+,:'31.irili:4,..1.....:.*::.1:::,..,..1.%.. IXXr gNxS1. tY _o;}C{i S"<hx x-0 1 -0x .,-..• . - • 0,,,,,,,v,,,,,,,..lifii ,....'.'. ,... :{ %xxxxaxx� -vxr.:{x:{xx^t}e..xxx hr w•-••+•{ rs. 'X%%x};xxxvvvv-r+SY.x}::[ Yvv-:KY.%xXxxX+..1 {}'{ presence tix%xS X%x;{KxXh+i}%}.%h,4xx%:x%th .S%XY'KTS s�{x - x} • Learn how to dramatically differentiate your ;x txY.CX company from your competition yXY} 'C'Sf�( 1 r ,14 , C'' S Yxx{ ii „ .. {X:{v aR %hir Initial Preparation xx� r. • Provide your domain name or Web site address vx :.; • Provide your primary SIC code }YX • Provide the domain name or Web site address of up to four competitors Cost • $750 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