5.0. EDSR 2-11-2002 Item 5 .
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city of
Elk -�-�
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Hall, Economic Development Assistant�(
DATE: February I I, 2002
SUBJECT: Strategic Industrial Marketing Plan Update
Attachments
• Sponsor Contributions, Sponsor/Publication/Company Designations
• Case Study: Bixby Energy Systems, Burning Ambition, Saint Paul Pioneer Press,
February 3, 2002.
• • Advertisement, MREJ Leasing Guide, 1St Quarter
2002 Advertising Campaign
The City of Elk River has acquired over $8,430.00 in sponsorship dollars this year.
Each sponsor was matched with its preferred publication in the attached spreadsheet.
Note that an appropriate news release/article also coordinates with each company
featured in the advertisements. Also note that the spreadsheet is subject to change in
accordance to suggestions made by Greta Wedell, the City's advertising designer.
2002 Community Profile
The final draft of the City's 2002 Community Profile will be available for handout on
February 11`h. The Community Profile will be available to future prospects as part of
the City's marketing packets.
Staff has also updated most of Elk River's Community Profile on the Dept. of Trade
and Economic Development's web site.
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• CASE STUDY: Bixby Energy Systems •
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y Bob.Walker is CEO of a new company producing a new furnace
that burns corn and other biomass fuels with little waste.
-M U pyx 9�g so cleanly, Walker doesn't even vent '
;�;� �� �`� Asx 4��� � �:st � �.: r ��..
e boutside.
BY DAVID HANNERS � 3 � �rsz ¢ his stove to the
Pioneer Press E o MM�lit' g� '
X4.0 "' � -Walkers vision of Bixby Energy
��� � s 5 �" t � Systems.is to start with production of
that if life gives t ll x i f "�'
here's a saying seals t Y this moderate-sized heater, then pro
you lemons, make lemonade A, i t fi,,S? f h ,§fir y �; duce and market special fuel pellets for
As Bob Walker sees it, if life ,,fs 10it1:f #n 9r0► F l s5k 1 it. The pellets would be made from a
gives you corn, make a stove lir y `wel s� ��x soy,r , Y: variety of biomass material — things
burns it for fuel. #iartr lulCcis b�oias like sugar beet waste,cranberry w and
It's long been known that corn can 41 tt4t`nii a anti i t olti„a to xpa;-: s R grape waste.and even sewage
be an efficient fuel,and cornfueled fur- -�t�spr$410ln�` r' .*104Py x4 ; mixed and compressed with other
naces have been around for years.But 13'{Jeile �5izecl fuels i,r xz ingredients in a proprietary recipe so
Walker,the retired founder of mattress k r , material would
maker Select Comfort Corp.,isthe CEO I i Bob of 0 x :that
de-each
a type
amef basic BTUs when
and driving force behind a new compa w * burned.
fly that has developed a furnace that ha1Jefge,Maf►ufaCture ani To lay phrase
combines off-the-shelf technology and �, mark t-a furnace tliat runs on "alternative mostive clay ppeople,ethe visionsphre
some high-tech gadgetry to make corn, '' iass fuck To dothat,the environmentalists — "tree-huggers,"
other "biomass" fuel, i nipafiy also ha5=tb Increase "tree
pricey
or virtually any as Walker would say—pushing
burn even more efficiently pdbtc a�rarene5s of biomass fuel energy sources that seem more science
"It's the fuel of the future," the 59 '1 artt dem n rate that at tan b fiction than reality. But Walker is a
year-old Walker said as he demonstrate expensive than fossti fuels' _ business pragmatist, and he says he
ed one of his prototype biomass fur- , oib�iityo Coipany +as wouldn't have gotten into the alterna-
naces at his Ramsey home. "It'll allow it1Cfsoratedn Jule 2001;and tive-energy field if the market weren't
us to. get away from Mideast oil. We 'hasn`t tamed ►roc itd1Oii yet already there for a product that worked
weVare literallylhaving to putt inusland I"r'�Je' �`0 OO2 produ�tian as advertised—and at a price competi-
Corrttiany hopes to build 6,000 tive with fossil fuels. „Walker said.
fills" "EfuCrieces lii its first year of "I'm a marketing guy,
Bixby Ener- S)31rattt3Yt as excited about. this as I was
Walker s new comnany, "I'm
gy Systems,opens a new 6,000 square when I started Select Comfort.There,
foot plant in',Elk River this month to 0, was taking people off traditional
begin production of its first product, a ,1,,,,,,,,,„:„,„,,-„,--,„.........� „- springs and putting them on air.dHere,
furnace capable of burning 1 cornor; for we're taking people off fossil fuels and
other biomass fuels with:1.i#17.:,waste,, ,,.;:-and,can keep the furnace burning
save feverw ashes you clean out of the s y rets fo abouthree t$2,795,and it will hee ace t will putting Indeed, the alternative energy field
m on biomass."
stove every So often
A ppshel of e costs l ss`than,$x= rlorinal, ed home: It burns the corn Walker sat rack re ord.entrepreneurs 1987, he
• M' founded Select Comfort Corp., a Min-
neapolis-based company that took a
simple idea—the chambered air mat-
tress—and improved on it,
turning it
sae's s` into a high-tech line of mattresses that
'11,-'-'40-F=04-4',44,a" A� �' owners swear by. The company has
g -'..:::;•40`-'-',4-.-4.�'{' '- g' "� �� tmore than 325 retail stores nationwide
�r "' ' and last year had sales in the$278 mil
" , t ori, ' 0. hon range.
4=:-":::=4.F„,‘,.:;"-A=4.,,,:.:: 4 j 4 Walker hopes to do the same thing
-, 4 t z 'rf' with biomass furnaces: Take a simple
.: o ' concept,•improve on it with technology,,
€ market it to the right consumers and
A • * 0•` r 4i watch as business takes off. He wants
s 4 +}
� �F: ''-"'-?..:'-';`,:i4-,,,%,.4:,,.=',::::%.,., ,� `��,� to.make money and wants the business
:x '
r'` to flourish, but at the heart of it, he
�, ,:.=4:4 says,there is a certain altruism.
w 2 With mattresses, •it was a desire to
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tA: � help people who had trouble sleeping
get.a good night's rest. With biomass
°�'' furnaces,it is a desire to find a cheap,
clean and abundant source of fuel.
Corn and other biomass fuels have
Bob Walker holds vials of some of the 20-odd fuel pellets his company has that potential,experts say.A study that
developed from waste biomass products that will burn in the Bixby furnaces. Walker did last summer when he ineor-
These are dry distiller grain (left over from the ethanol process)and sweet porated Bixby Energy. Systems showed
that to produce 1 million BTUs of heat,
corn silage,sunflower hulls and navy bean cull and dry shelled corn. Others it worth of electricity,
include wheat pellet,soybean meal,waste feed, beet pulp,corn stalk and , it would$12.88 takewo$21.39th oliquid propane gas,
dry distiller grain,all pelletized and sold in 40-pound bags or in bulk delivery.
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SoftPac Benefits From Seamless Site Selection Expertise.
"Opus, Colliers Towle and the City of Elk River worked smoothly For a free Location Site Guide,including expansion and relocation
together to identify the right site for our 75,000 square foot highly opportunities,financing in formation and much more,
specialized industrial facility.Elk River fulfills our transportation
needs with access to Highways 10, 169 and 101 and serves as a e-mail hhall@ci.elk-rivermn.us or call(763) 441-7420.
convenient halfway point between our Foley plant and our corporate
headquarters in Plymouth.
•
Our unique water and work force needs were also met. Our new ��
location has been highly successful in attracting the skilled work City of
force living in the northern tier,from St.Cloud,the Twin Cities and �1
the outlying rural areas." 1R ^-��
John Dennis,Vice President of Operations River
r
SofCPac Industries,Inc. The Light Industrial Hub of the Northwest Metro
Northstar.Access �__� lierianL
^��T••n a in-E 11:w.!.. .,
l.]: K ErlElgy •Minnegasco
• ...„......---"e1
wwusnortbstarucceu.com wwwhontofelkrwercoin www.minnegasco.com
��flrbF� �� t� RGYCI` G E D E S ( STM
_. .NayNJ1.L wE nMtl
fUflN6ff CENTENf,ti0.
uwuslnui(xmkercorn www.ci elk•riuernin.us wwsugerwstaceniers.com
• \''''(4%
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: February I I, 2002
SUBJECT: 2001 Inquiry/Prospect Report
Attachment
• 2001 Inquiry/Prospect Report
Overview
• Staff has been tracking inquiries and prospects within a database. Attached is a brief
summary of inquiries received for the year 2001. Following is a breakdown summary of the
types of inquiries received:
Total Inquiries: 75
• Commercial 30
• Industrial 45
Nature of Industrial Inquiry:
• Lease Space 12
• Land/Building 28
• Other (info/$) 5
Industrial Size:
• Small (Less than 10,000-square feet) 16
• Medium (10,000-sf to 25,000-s f) 10
• Large (30,000-sf+) 13
• Other (spec/info) 6
Industrial Status:
• Active Prospects/Delayed Decision 10
• • Located Site in Elk River 2
• NA/Unknown 29
• Located Site Elsewhere 4 (Ramsey, Osseo,Big Lake)
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